Document:

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                                                                   EXHIBIT 10.16

                               ST. JOE CORPORATION
                        1650 Prudential Drive, Suite 400
                        Jacksonville, Florida 32201-1380

                                October 22, 1997

Mr. Jerry M. Ray
2114 Whiteoaks Drive                                   PERSONAL AND CONFIDENTIAL
Alexandria, VA 22306

Dear Jerry:

      St. Joe Corporation (the "Company") is pleased to offer you employment on
the following terms.

1.    Position. You will serve in a full-time capacity as Vice President -
      Corporate Communications for St. Joe and its wholly owned subsidiaries.
      You will report directly to the Chief Executive Officer. Your duties will
      be those assigned by the Chief Executive Officer.

2.    Salary. You will be paid a salary at the annual rate of $200,000, payable
      in accordance with the Company's standard payroll practices for salaried
      employees. This salary will be subject to reevaluation on each January 1,
      commencing January 1, 1999. It may be increased but not reduced during
      your employment, pursuant to the Company's employee compensation policies
      in effect from time to time. You will also receive a car allowance of $650
      per month (gross) in addition to your base salary. This allowance
      constitutes the full and complete reimbursement of all car expenses by the
      Company. This allowance
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      will not be included as wages in the calculation of any benefits or
      compensation plans. You will also receive a one-time cash payment of
      $70,000 (gross) upon your date of hire. You will be responsible for all
      taxes on this payment.

3.    Bonus. You will be eligible to participate in the Company's annual
      discretionary bonus plan, which is based on overall company performance,
      division performance and individual performance for the calendar year with
      an award range of 0% to 50% of your Base Salary. This award range will not
      be reduced during your employment with the Company. Your initial
      participation will be in the plan for calendar year 1997 with a pro-rated
      range of 0% to 15% of your Base Salary.

4.    Stock Options. Subject to the approval of the Company's Board of Directors
      Compensation Committee, you will be granted a nonstatutory option to
      purchase 15,000 shares of the Company's Common Stock. The exercise price
      per share will be equal to the closing price on the date previous to the
      date the Committee grants the option. You will vest 20% of the option
      after 12 months of service, and the balance will vest in equal annual
      installments over the next 48 months of service, as described in the
      applicable stock option agreement. The option will have a 10-year term. In
      all respects not described in this letter, the option will be subject to
      the terms and conditions of the Company's 1997 Stock Incentive Plan (the
      "Plan") and the applicable stock option agreement.

5.    Benefits. You and your family will be eligible for all benefit programs
      and perquisites that are offered from time to time to similarly situated
      officers of the Company.
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6.    Expense Reimbursement. You will be eligible for reimbursement of necessary
      and reasonable business expenses subject to Company policy.

7.    Relocation Benefits. Your relocation package will include packing and
      shipment of your office and household goods from Alexandria, VA to
      Jacksonville and storage for up to 120 days, reimbursement of all
      reasonable and customary expenses associated with the sale of your primary
      residence in Alexandria (not to exceed 9% of the contract sales price) and
      the purchase of a primary residence in Jacksonville (not to exceed 3% of
      your mortgage value, including origination and discount points). In the
      event that you purchase a home in Jacksonville prior to the sale of your
      home in Alexandria, the Company will provide you with an interest free
      "bridge loan" equivalent to the down payment on the purchase of your new
      home. This loan is to be reimbursed no later than February 1, 1999. You
      will receive temporary housing (not including meals and incidentals) in a
      Company apartment in Jacksonville for up to 120 days. This date may be
      extended by the Company. You will be entitled to receive from the Company
      a gross-up payment equal to all federal and state taxes imposed on the
      reimbursement of nondeductible relocation costs and on the gross-up
      payment itself. The intent of the preceding sentence is to hold you
      harmless, in an after-tax basis, from the tax impact of all reimbursements
      of nondeductible relocation costs.

8.    Severance Pay. In the event that the Company terminates your employment
      without your consent for any reason other than cause or disability, you
      will receive severance pay in a
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      lump sum in an amount equal to 100% of your Base Salary at the rate in
      effect at the time of your termination, plus 50% of the amount of any
      bonus awarded you the prior year; less any severance payments under the
      Company's standard severance program.

            If termination of your employment is subject to this paragraph, the
      Company will provide you and your family health insurance coverage and
      will provide you disability insurance coverage under the applicable
      Company plans for a period of 12 months following termination or until you
      start other full time employment, whichever is earlier.

            For purposes of this Agreement, "cause" means gross negligence,
      misconduct, non-feasance, a material breach of this Agreement, conviction
      following final disposition of any available appeal of a felony, or
      pleading guilty or no contest to a felony.

9.    Period of Employment. Your employment with the Company will be "at will,"
      meaning that either you or the Company will be entitled to terminate your
      employment at any time and for any reason, with or without cause, upon 30
      days' written notice. Any contrary representations which may have been
      made to you are superseded by this offer. Except for other specific
      provisions of this Agreement relating to termination, this is the full and
      complete Agreement between you and the Company on this term. The "at will"
      nature of your employment may only be changed in an express written
      agreement signed by you and a duly authorized officer of the Company

10.   Termination Upon Death. In the event of your death during your employment,
      this Agreement shall terminate and the Company shall only be obligated to
      pay your estate or legal representative the Base Salary provided for
      herein to the extent earned by
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      you prior to such event.

            However, the Company may pay your estate or legal representative a
      bonus which you may have earned prior to your death. Any rights in stock
      options for which you were eligible prior to your death shall vest
      according to Company policy.

10.   Disability. If you are unable to perform the services required of you as a
      result of any disability and such disability continues for a period of 120
      or more consecutive days or an aggregate of 180 or more days during any
      12-month period during your employment, the Company shall have the right,
      at its option, to terminate your employment. Unless and until so
      terminated, during any period of disability during which you are unable to
      perform the services required of you, your salary shall be payable to the
      extent of, and subject to, Company's policies and practices then in effect
      with regard to sick leave and disability benefits.

11.   Insurance and Indemnification. The Company will indemnify you for your
      actions as a Company employee or officer pursuant to Company policy and,
      prior to commencement of your service, will confirm it has in place
      adequate insurance coverage acceptable to you for your actions as a
      Company employee or officer.

12.   Outside Activities. While employed by the Company, you will not engage in
      any other employment, or business activity for compensation without the
      written consent of the Company. While employed by the Company, you also
      will not compete with or assist any person or organization in competing
      with the Company, in preparing to compete with the Company, or in hiring
      any employees of the Company.
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13.   Withholding Taxes. All forms of compensation referred to in this Agreement
      are subject to reduction to reflect applicable withhold and payroll taxes.

14.   Entire Agreement. This Agreement contains all of the terms of your
      employment with the Company and supersedes any prior understandings or
      agreements, whether oral or written, between you and the Company.

15.   Amendment and Governing Law. This Agreement may only be amended or
      modified by an express written agreement signed by you and a duly
      authorized officer of the Company. The terms of this Agreement and the
      resolution of any disputes will be governed by Florida law.

      We hope that you find the foregoing terms acceptable. You may indicate
your agreement with these terms and accept this offer by signing and dating the
enclosed duplicate original of this letter and returning it to me. As required
by law, your employment with the Company is also contingent upon your providing
legal proof of your identity and authorization to work in the United States.
This offer, if not accepted, will expire at the close of business on Friday,
October 24, 1997.
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      We look forward to having you join us on or about November 24, 1997. If
you have any questions, please call me at 904/858-5212.

                                              Very truly yours,

                                              ST. JOE CORPORATION

                                              By: /s/ Michael F. Bayer
                                              ----------------------------------
                                              Michael F. Bayer
                                              Vice President
                                              Human Resources and Administration

I have read and accept this employment offer:

/s/ Jerry M. Ray
----------------------------------
Signature of Jerry M. Ray

Dated: Oct. 23, 1997
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                                                                   EXHIBIT 10.17

                               ST. JOE CORPORATION
                        1650 Prudential Drive, Suite 400
                        Jacksonville, Florida 32201-1380

                                November 3, 1997

Mr. Mike N. Regan
12099 Aladdin Road                                       PERSONAL & CONFIDENTIAL
Jacksonville, FL 32223

Dear Mike:

      St Joe Corporation (the "Company") is pleased to offer you employment on
the following terms.

1.    Position. You will serve in a full-time capacity as Vice President -
      Finance and Planning for St. Joe and its wholly owned subsidiaries. You
      will report directly to Chuck Ledsinger, Sr. Vice President and Chief
      Financial Officer. Your primary duties will include managing a variety of
      financial functions, including financial administration (policies and
      procedures), some treasury functions, planning, financial analysis and
      risk management.

2.    Salary. You will be paid a salary at the annual rate of $185,000 (the
      "Base Salary"), payable in accordance with the Company's standard payroll
      practices for salaried employees. This salary will be subject to
      reevaluation on each January 1, commencing January 1, 1998. It may be
      increased but not reduced during your employment, pursuant to the
      Company's employee compensation policies in effect from time to time. You
      will also receive a car allowance of $650 per month (gross) in addition to
      your base salary. This allowance constitutes the full and complete
      reimbursement of all car expenses by the Company. This allowance will not
      be included as wages in the calculation of any
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      benefits or compensation plans. You will also receive a one-time cash
      payment of $50,000 (gross) upon your date of hire. You will be responsible
      for all taxes on this payment.

3.    Bonus. You will be eligible to participate in the Company's annual
      discretionary bonus plan, which is based on overall Company performance,
      Division performance and individual performance for the calendar year with
      an award range of 0% to 50% of your Base Salary. This award range will not
      be reduced during your employment with the Company.

4.    Stock Options. Subject to the approval of the Company's Board of Directors
      Compensation Committee, you will be granted a nonstatutory option to
      purchase 15,000 shares of the Company's Common Stock. The exercise price
      per share will be equal to the closing price on the date previous to the
      date the Committee grants the option. You will vest 20% of the option
      after 12 months of service, and the balance will vest in equal annual
      installments over the next 48 months of service, as described in the
      applicable stock option agreement. The option will have a 10-year term. In
      all respects not described in this letter, the option will be subject to
      the terms and conditions of the Company's 1997 Stock Incentive Plan (the
      "Plan") and the applicable stock option agreement.
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5.    Benefits. You and your family will be eligible for all benefit programs
      and perquisites that are offered from time to time to similarly situated
      officers of the Company.

6.    Expense Reimbursement. You will be eligible for reimbursement of necessary
      and reasonable business expenses subject to Company policy.

7.    Relocation Benefits. Your relocation package will include packing and
      shipment of your office and household goods (including up to an additional
      $2,000 for shipment of various farm equipment) from Middleton, TN to
      Jacksonville and storage for up to 180 days, reimbursement of all
      reasonable and customary expenses associated with the sale of your primary
      residence in Middleton and the purchase of a primary residence in
      Jacksonville. This includes up to two mortgage points to "buy down" your
      mortgage and up to one point in origination fees. You will receive a cash
      equivalent of one way coach airfare from Memphis to Jacksonville for you
      and your wife, 2 round trip coach airfares from Memphis to Jacksonville
      while your farm is unsold. You will receive temporary housing (not
      including meals and incidentals) in a Company apartment in Jacksonville
      for up to 180 days. This date may be extended by the Company. You will be
      entitled to receive from the Company a gross-up payment equal to all
      federal and state taxes imposed on the reimbursement of nondeductible
      relocation costs and on the gross-up payment itself. The intent of the
      preceding sentence is to hold you harmless, in an after-tax basis, from
      the tax
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      impact of all reimbursements of nondeductible relocation costs,

8.    Period of Employment. Your employment with the Company will be "at will,"
      meaning that either you or the Company will be entitled to terminate your
      employment at any time and for any reason, with or without cause, upon 30
      days' written notice. Any contrary representations which may have been
      made to you are superseded by this offer. Except for other specific
      provisions of this Agreement relating to termination, this is the full and
      complete Agreement between you and the Company on this term. The "at will"
      nature of your employment may only be changed in an express written
      agreement signed by you and a duly authorized officer of the Company.

9.    Severance Pay. Notwithstanding Paragraph 8, in the event that the Company
      terminates your employment without your consent for any reason other than
      cause or disability, you will receive severance pay in a lump sum in an
      amount equal to 100% of your Base Salary at the rate in effect at the time
      of your termination, plus 50% of the amount of any bonus awarded you the
      prior year; less any severance payments under the Company's standard
      severance program, provided; however, if you receive or are entitled to
      receive payment under a severance agreement with the Company that provides
      payments or benefits under a Change in Control then no payments shall be
      made to you under this Paragraph 9.
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            If termination of your employment is subject to this paragraph, the
      Company will provide you and your family health insurance coverage,
      including, if applicable, COBRA reimbursement provided in Paragraph 5, and
      will provide you disability insurance coverage under the applicable
      Company plans for a period of 12 months following termination or until you
      start other full time employment, whichever is earlier.

            For purposes of this Agreement, "cause" means gross negligence,
      misconduct, non-feasance, a material breach of this Agreement, conviction
      following final disposition of any available appeal of a felony, or
      pleading guilty or no contest to a felony.

10.   Termination Upon Death. In the event of your death during your employment,
      this Agreement shall terminate and the Company shall only be obligated to
      pay your estate or legal representative the Base Salary provided for
      herein to the extent earned by you prior to such event.

            However, the Company may pay your estate or legal representative a
      bonus which you may have earned prior to your death. Any rights in stock
      options for which you were eligible prior to your death shall vest
      according to Company policy.
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11.   Disability. If you are unable to perform the services required of you as a
      result of any disability and such disability continues for a period of 120
      or more consecutive days or an aggregate of 180 or more days during any
      12-month period during your employment, the Company shall have the right,
      at its option, to terminate your employment Unless and until so
      terminated, during any period of disability during which you are unable to
      perform the services required of you, your salary shall be payable to the
      extent of, and subject to, Company's policies and practices then in effect
      with regard to sick leave and disability benefits.

12.   Insurance and Indemnification. The Company will indemnify you for your
      actions as a Company employee or officer pursuant to Company policy and,
      prior to commencement of your service, will confirm it has in place
      adequate insurance coverage acceptable to you for your actions as a
      Company employee or officer.

13.   Outside Activities. While employed by the Company, you will not engage in
      any other employment, or business activity for compensation without the
      written consent of the Company. While employed by the Company, you also
      will not compete with or assist any person or organization in competing
      with the Company, in preparing to compete with the Company, or in hiring
      any employees of the Company.
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14.   Withholding Taxes. All forms of compensation referred to in this Agreement
      are subject to reduction to reflect applicable withhold and payroll taxes.

15.   Entire Agreement. This Agreement contains all of the terms of your
      employment with the Company and supersedes any prior understandings or
      agreements, whether oral or written, between you and the Company.

16.   Amendment and Governing Law. This Agreement may only be amended or
      modified by an express written agreement signed by you and a duly
      authorized officer of the Company. The terms of this Agreement and the
      resolution of any disputes will be governed by Florida law.

      We hope that you find the foregoing terms acceptable. You may indicate
your agreement with these terms and accept this offer by signing and dating the
enclosed duplicate original of this letter and returning it to me. As required
by law, your employment with the Company is also contingent upon your providing
legal proof of your identity and authorization to work in the United States.
This offer, if not accepted, will expire at the close of business on Friday,
November 14, 1997.
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      If you have any questions, please call me at 904/858-5212.

                                          Very truly yours,

                                          ST. JOE CORPORATION

                                          By: /s/ Michael F. Bayer
                                              ----------------------------------
                                              Michael F. Bayer
                                              Vice President
                                              Human Resources and Administration

I have read and accept this employment offer:

/s/ Michael N. Regan
----------------------------------
Signature of Mike N. Regan
Dated: November 6, 1997

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