Document:

EX-10.2

 EXHIBIT 10.2 

TAX MATTERS AGREEMENT 
 BY AND
BETWEEN 
 RAYONIER INC. 
 AND

 RAYONIER HOLDING COMPANY 

DATED AS OF [—] 

 TAX MATTERS AGREEMENT 

THIS TAX MATTERS AGREEMENT (this “Agreement”), dated as of [—], is by and
between Rayonier Inc., a North Carolina corporation (“Rayonier”), Rayonier Holding Company, a Delaware corporation (“SpinCo”), Rayonier TRS Holdings Inc., a wholly owned Subsidiary of Rayonier
(“TRS”), and Rayonier Products LLC, a Delaware Limited Liability Company and wholly owned subsidiary of TRS (“Products”). Each of Rayonier, SpinCo, TRS, and Products is sometimes referred to herein as a
“Party” and, collectively, as the “Parties.” 
 WHEREAS, Rayonier has elected to be classified as a real
estate investment trust within the meaning of Section 856(a) of the Code; 
 WHEREAS, Products has elected to be treated as a
corporation for U.S. federal income tax purposes; 
 WHEREAS, Rayonier, through its various Subsidiaries, is engaged in the Rayonier
Business and the SpinCo Business; 
 WHEREAS, the board of directors of Rayonier has determined that it is in the best interests of Rayonier
and its shareholders to create a new publicly traded company which shall operate the SpinCo Business; 
 WHEREAS, Rayonier and SpinCo have
entered into the Separation and Distribution Agreement pursuant to which (a) Rayonier will, and will cause its Subsidiaries to, transfer certain assets, liabilities, Subsidiaries and businesses of Rayonier and its Subsidiaries to SpinCo and its
Subsidiaries pursuant to the Plan of Reorganization, as a result of which SpinCo will own, directly and through its Subsidiaries, the SpinCo Business (the “Restructuring”), and (b) Rayonier will distribute all of the stock of
SpinCo to its shareholders (the “Distribution”) as described therein; 
 WHEREAS, prior to consummation of the
Restructuring and the Distribution, TRS was the common parent corporation of an affiliated group of corporations within the meaning of Section 1504 of the Code; 

WHEREAS, prior to consummation of the Restructuring and the Distribution, Products was a wholly owned Subsidiary of TRS; 

WHEREAS, the Parties intend that, for U.S. federal income Tax purposes, certain steps of the Restructuring and the Distribution shall qualify
as tax-free transactions pursuant to Sections 355, 368(a)(1)(D) and related provisions of the Code; and 
 WHEREAS, the Parties wish to
(a) provide for the payment of Tax liabilities and entitlement to refunds thereof, (b) allocate responsibility for, and cooperation in, the filing of Tax Returns, and provide for certain other matters relating to Taxes, and (c) set
forth certain covenants and indemnities relating to the preservation of the tax-free status of certain steps of the Restructuring and the Distribution. 

 NOW, THEREFORE, in consideration of the foregoing and the terms, conditions, covenants and
provisions of this Agreement, each of the Parties mutually covenants and agrees as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.01.  General.  As used in this Agreement, the following terms shall have the following
meanings: 
 “Accounting Firm” has the meaning set forth in Section 10.01(b). 

“Adjustment” means any change in the Tax liability of a taxpayer, determined issue-by-issue or transaction-by-transaction, as
the case may be. 
 “Agreement” has the meaning set forth in the preamble to this Agreement. 

“Ancillary Agreement” has the meaning set forth in the Separation and Distribution Agreement. 

“Benefited Party” has the meaning set forth in Section 6.01(b) of this Agreement. 

“Closing Date” means the date on which the Distribution occurs. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time (including corresponding provisions of any
successor statute). 
 “Common Parent” means (i) for U.S. federal Income Tax purposes, the “common parent
corporation” of an “affiliated group” (in each case, within the meaning of Section 1504 of the Code) filing a U.S. federal consolidated Income Tax Return, or (ii) for state, local or foreign income Tax purposes, the common
parent (or the equivalent thereof) of a Tax Group. 
 “Disqualifying Action” means a Rayonier Disqualifying Action or a
SpinCo Disqualifying Action. 
 “Distribution” has the meaning set forth in the preamble to this Agreement. 

“Due Date” means (i) with respect to a Tax Return, the date (taking into account all valid extensions) on which such Tax
Return is required to be filed under applicable Law and (ii) with respect to a payment of Taxes, the date on which such payment is required to be made to avoid the incurrence of interest, penalties and/or additions to Tax. 

“Effective Time” has the meaning set forth in the Separation and Distribution Agreement. 

“Employee Matters Agreement” has the meaning set forth in the Separation and Distribution Agreement. 

  
 2 

 “Extraordinary Transaction” means any action that is not in the Ordinary Course
of Business, but shall not include any action described in the Separation and Distribution Agreement or any Ancillary Agreement or that is undertaken pursuant to the Restructuring, the Distribution or the Plan of Reorganization. 

“Fifty-Percent or Greater Interest” has the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the
Code. 
 “Final Determination” means the final resolution of liability for any Tax Item or for the Tax liability for any
taxable period, by or as a result of (i) a final decision, judgment, decree or other order by any court of competent jurisdiction that can no longer be appealed; (ii) a final settlement with the IRS, a closing agreement or accepted offer
in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the Laws of other jurisdictions, which resolves the entire Tax liability for any taxable period; (iii) any allowance of a refund or credit in respect of an
overpayment of Tax, but only after the expiration of all periods during which such refund or credit may be recovered by the jurisdiction imposing the Tax; or (iv) any other final resolution, including by reason of the expiration of the
applicable statute of limitations or the execution of a pre-filing agreement with the IRS or other Taxing Authority. 
 “Income Tax
Return” means any Tax Return relating to Income Taxes. 
 “Income Taxes” means any Taxes based upon, measured by,
or calculated with respect to: (A) net income or profits or net receipts (including, but not limited to, any capital gains, minimum Tax, any Tax on items of Tax preference, or any REIT Taxes, but not including sales, use, real or personal
property, or transfer or similar Taxes) or (B) multiple bases (including corporate franchise, doing business and occupation Taxes) if one or more bases upon which such Tax may be based, measured by, or calculated with respect to, is described
in clause (A). 
 “Indemnified Party” means the Party which is entitled to seek indemnification from another Party pursuant
to the provisions of Article V. 
 “Indemnifying Party” means the Party from which another Party is entitled to seek
indemnification pursuant to the provisions of Article V. 
 “Information” has the meaning set forth in Section 9.01.

 “Information Request” has the meaning set forth in Section 9.01. 

“IRS” means the U.S. Internal Revenue Service or any successor thereto, including, but not limited to its agents,
representatives, and attorneys. 
 “IRS Ruling” means the U.S. federal income Tax ruling, and any supplements thereto,
issued to Rayonier and TRS by the IRS in connection with the Restructuring and the Distribution. 
 “Law” has the meaning
set forth in the Separation and Distribution Agreement. 

  
 3 

 “Mixed Business Income Taxes” means any U.S. federal, state or local, or foreign
Income Taxes attributable to any Mixed Business Income Tax Return. 
 “Mixed Business Income Tax Return” means any Income
Tax Return (other than a TRS Consolidated Return), including any consolidated, combined or unitary Income Tax Return, that relates to at least one asset or activity that is part of the Rayonier Business, on the one hand, and at least one asset or
activity that is part of the SpinCo Business, on the other hand. 
 “Mixed Business Non-Income Tax Return” means any
Non-Income Tax Return that relates to at least one asset or activity that is part of the Rayonier Business, on the one hand, and at least one asset or activity that is part of the SpinCo Business, on the other hand. 

“Non-Income Tax Return” means any Tax Return relating to Taxes other than Income Taxes. 

“Notified Action” has the meaning set forth in Section 8.03(a). 

“Opinion” means the opinion of outside counsel to Rayonier with respect to certain Tax aspects of the Restructuring and the
Distribution, as referenced in Section 3.3(a)(iv) of the Separation and Distribution Agreement. 
 “Ordinary Course of
Business” means an action taken by a Person only if such action is taken in the ordinary course of the normal day-to-day operations of such Person. 

“Party” has the meaning set forth in the preamble to this Agreement. 

“Past Practice” has the meaning set forth in Section 3.01(a). 

“Person” has the meaning set forth in the Separation and Distribution Agreement. 

“Plan of Reorganization” has the meaning set forth in the Separation and Distribution Agreement. 

“Pre-Closing Period” means any taxable period (or portion thereof) ending on or before the Closing Date. 

“Post-Closing Period” means any taxable period (or portion thereof) beginning after the Closing Date. 

“Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or
arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is
supported by SpinCo management or shareholders, is a hostile acquisition, or otherwise, as a result of which SpinCo would merge or consolidate with any other Person or as a result of which one or more Persons would (directly or indirectly) acquire,
or have the right to acquire, from SpinCo and/or one or more holders of outstanding shares of SpinCo capital stock, as the case may be, a number of shares of SpinCo capital stock that would, when combined with any other changes in ownership

  
 4 

 
of SpinCo capital stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (A) the value of all outstanding shares of stock of SpinCo as of the date of such
transaction, or in the case of a series of transactions, the date of the last transaction of such series, or (B) the total combined voting power of all outstanding shares of voting stock of SpinCo as of the date of such transaction, or in the
case of a series of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (A) the adoption by SpinCo of a shareholder rights plan or (B) issuances
by SpinCo that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation
Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect
acquisition of shares of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or
change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation. 

“Rayonier” has the meaning set forth in the preamble to this Agreement. 

“Rayonier Business” has the meaning set forth in the Separation and Distribution Agreement. 

“Rayonier Disqualifying Action” means (i) any action (or the failure to take any action) within the control of Rayonier
or any Rayonier Entity (including entering into any agreement, understanding or arrangement or any negotiations with respect to any transaction or series of transactions) that, (ii) any event (or series of events) involving the capital stock of
Rayonier, any assets of Rayonier or any assets of any Rayonier Entity that, or (iii) any breach by Rayonier or any Rayonier Entity of any representation, warranty or covenant made by them in this Agreement that, in each case, would negate the
Tax-Free Status of the Transactions; provided, however, the term “Rayonier Disqualifying Action” shall not include any action described in the Separation and Distribution Agreement or any Ancillary Agreement or that is
undertaken pursuant to the Restructuring, the Distribution or the Plan of Reorganization. 
 “Rayonier Entity” means any
Subsidiary of Rayonier immediately after the Effective Time. 
 “Rayonier Group” means, individually or collectively, as
the case may be, Rayonier and any Rayonier Entity. 
 “Rayonier Service Provider” has the meaning set forth in
Section 6.05(c)(ii). 
 “Rayonier Taxes” means any Taxes of Rayonier or any Subsidiary or former Subsidiary of
Rayonier for any Pre-Closing Period and, with respect to a Straddle Period, the portion of such period ending on the Closing Date (determined in accordance with Section 4.01), in each case other than SpinCo Taxes. 

“Refund” means any refund (or credit in lieu thereof) of Taxes (including any overpayment of Taxes that can be refunded or,
alternatively, applied to other Taxes payable), 

  
 5 

 
including any interest paid on or with respect to such refund of Taxes, provided, however, that for purposes of this Agreement, the amount of any Refund required to be paid to another Party shall
be reduced by the net amount of any Income Taxes imposed on, related to, or attributable to, the receipt or accrual of such Refund. 

“REIT Taxes” means (i) any Taxes imposed a result of the disqualification of Rayonier as a real estate investment trust
under Section 856(a) of the Code, (ii) any Taxes imposed under Section 857(b)(5) of the Code, and (iii) any excise Taxes imposed under Section 4981 of the Code. 

“Reliance Materials” has the meaning set forth in Section 8.01(a). 

“Representatives” has the meaning set forth in the Separation and Distribution Agreement. 

“Restriction Period” has the meaning set forth in Section 8.02(b). 

“Restructuring” has the meaning set forth in the preamble to this Agreement. 

“Restructuring/Distribution Taxes” means any Taxes imposed on or by reason of the Restructuring or the Distribution
(including Transfer Taxes), other than any such Taxes caused by a Disqualifying Action. For the avoidance of doubt, Restructuring/Distribution Taxes include Taxes by reason of deferred intercompany transactions triggered by the Restructuring or the
Distribution. 
 “Reviewing Party” has the meaning set forth in Section 3.02. 

“SAG” has the meaning ascribed to the term “separate affiliated group” in Section 355(b)(3)(B) of the Code.

 “Section 8.02(d) Acquisition Transaction” means any transaction or series of transactions that is not a Proposed
Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 25% instead of 40%. 

“Separation and Distribution Agreement” means the Separation and Distribution Agreement by and between the Parties dated as
of [—]. 
 “Single Business Return” means any Single Business Income
Tax Return or Single Business Non-Income Tax Return. 
 “Single Business Income Tax Return” means any Income Tax Return,
including any consolidated, combined or unitary Tax Return, that includes assets or activities relating only to the Rayonier Business, on the one hand, or the SpinCo Business, on the other (but not both), whether or not the Person charged by Law to
file such Tax Return is engaged in the business to which the Tax Return relates. 

  
 6 

 “Single Business Non-Income Tax Return” means any Tax Return that is a
Non-Income Tax Return, including any consolidated, combined or unitary Tax Return, that includes assets or activities relating only to the Rayonier Business, on the one hand, or the SpinCo Business, on the other (but not both), whether or not the
Person charged by Law to file such Tax Return is engaged in the business to which the Tax Return relates. 
 “Specified
Credits” means any credit pursuant to Sections 34, 40, 6426 and 6427 of the Code. 
 “SpinCo” has the meaning set
forth in the preamble to this Agreement. 
 “SpinCo Business” has the meaning set forth in the Separation and Distribution
Agreement. 
 “SpinCo Disqualifying Action” means (i) any action (or the failure to take any action) within its
control by SpinCo or any SpinCo Entity (including entering into any agreement, understanding or arrangement or any negotiations with respect to any transaction or series of transactions) that, (ii) any event (or series of events) involving the
capital stock of SpinCo, any assets of SpinCo or any assets of any SpinCo Entity that, or (iii) any breach by SpinCo or any SpinCo Entity of any representation, warranty or covenant made by them in this Agreement that, in each case, would
negate the Tax-Free Status of the Transactions; provided, however, that the term “SpinCo Disqualifying Action” shall not include any action described in the Separation and Distribution Agreement or any Ancillary
Agreement or that is undertaken pursuant to the Restructuring, the Distribution or the Plan of Reorganization. 
 “SpinCo
Entity” means any Subsidiary of SpinCo immediately after the Effective Time. 
 “SpinCo Group” means, individually
or collectively, as the case may be, SpinCo and any SpinCo Entity. 
 “SpinCo Service Provider” has the meaning set forth
in Section 6.05(c)(i). 
 “SpinCo Taxes” means, without duplication, (i) any Taxes of Rayonier, any Rayonier
Entity, SpinCo or any SpinCo Entity, in each case for any period, attributable solely to, or arising solely with respect to, assets or activities of the SpinCo Business (excluding any Restructuring/Distribution Taxes), (ii) any
Restructuring/Distribution Taxes, and (iii) any Taxes attributable to a SpinCo Disqualifying Action (including any REIT Taxes); in each case (A) whether as the result of an Adjustment, amendment or otherwise and (B) including any
Taxes resulting from a change of accounting method pursuant to Section 481(a) of the Code. For the avoidance of doubt, SpinCo Taxes shall not include any Taxes attributable to a Rayonier Disqualifying Action. 

“Straddle Period” means any taxable period that begins on or before and ends after the Closing Date. 

“Subsidiary” has the meaning set forth in the Separation and Distribution Agreement. 

  
 7 

 “Tax” means (i) all taxes, charges, fees, duties, levies, imposts, or other
similar assessments, imposed by any U.S. federal, state or local or foreign governmental authority, including, but not limited to, income, gross receipts, excise, property, sales, use, license, capital stock, transfer, franchise, margin, payroll,
withholding, social security, value added and other taxes, (ii) any interest, penalties or additions attributable thereto and (iii) all liabilities in respect of any items described in clauses (i) or (ii) payable by reason of
assumption, transferee or successor liability, operation of Law or Treasury Regulation Section 1.1502-6(a) (or any predecessor or successor thereof or any analogous or similar provision under Law). 

“Tax Attributes” means net operating losses, capital losses, credits (including any Specified Credits), earnings and profits
(including any REIT earning and profits), overall foreign losses, previously taxed income, separate limitation losses and all other Tax attributes. 

“Tax-Free Status of the Transactions” means the tax-free treatment accorded to certain of the transactions taken in
connection with the Restructuring and the Distribution as set forth in the IRS Ruling and the Opinion. 
 “Tax Group” means
any U.S. federal, state, local or foreign affiliated, consolidated, combined, unitary or similar group or fiscal unity that joins in the filing of a single Tax Return. 

“Tax Item” means any item of income, gain, loss, deduction, credit, recapture of credit or any other item which increases or
decreases Taxes paid or payable. 
 “Taxing Authority” means any governmental authority or any subdivision, agency,
commission or entity thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS). 

“Tax Matter” has the meaning set forth in Section 9.01. 

“Tax Package” means all relevant Tax-related information relating to the operations of the Rayonier Business or the SpinCo
Business, as applicable, that is reasonably necessary to prepare and file the applicable Tax Return. 
 “Tax Proceeding”
means any audit, assessment of Taxes, pre-filing agreement, other examination by any Taxing Authority, proceeding, appeal of a proceeding or litigation relating to Taxes, whether administrative or judicial, including proceedings relating to
competent authority determinations. 
 “Tax Return” means any return, report, certificate, form or similar statement or
document (including any related or supporting information or schedule attached thereto and any information return, or declaration of estimated Tax) required to be supplied to, or filed with, a Taxing Authority in connection with the payment,
determination, assessment or collection of any Tax or the administration of any Laws relating to any Tax and any amended Tax return or claim for refund. 

“Transfer Taxes” means all sales, use, transfer, real property transfer, intangible, recordation, registration, documentary,
stamp or similar Taxes imposed on the Restructuring or the Distribution. 

  
 8 

 “Treasury Regulations” means the final and temporary (but not proposed) income
Tax regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 

“TRS” has the meaning set forth in the preamble to this Agreement. 

“TRS Consolidated Return” means the U.S. federal Income Tax Return required to be filed by TRS as the Common Parent. 

“Unqualified Tax Opinion” means a “will” opinion, without substantive qualifications, of a nationally recognized
law firm, which law firm is reasonably acceptable to Rayonier, to the effect that a transaction will not affect the Tax-Free Status of the Transactions. 

“U.S.” means the United States of America. 

Section 1.02.  Additional Definitions. 

(a)            Capitalized terms not defined in this Agreement shall have the
meaning ascribed to them in the Separation and Distribution Agreement. 
 ARTICLE II 

PREPARATION, FILING AND PAYMENT OF TAXES SHOWN DUE 

ON TAX RETURNS 

Section 2.01.  TRS Consolidated Returns. 

(a)       General.  TRS shall prepare and file all TRS Consolidated Returns for a
Pre-Closing Period or a Straddle Period and shall pay all Taxes shown to be due and payable on such Tax Returns; provided that SpinCo shall reimburse Rayonier for any such Taxes that are SpinCo Taxes. 

(b)       Extraordinary Transactions.  Notwithstanding anything to the contrary in this
Agreement, for all Tax purposes, the Parties shall report any Extraordinary Transactions that are caused or permitted by SpinCo or any its Subsidiaries on the Closing Date after the Effective Time as occurring on the day after the Closing Date
pursuant to Treasury Regulation Section 1.1502-76(b)(1)(ii)(B) or any similar or analogous provision of state, local or foreign Law. 

Section 2.02.  Mixed Business Returns. 

(a)       Mixed Business Income Tax Returns. 

(i)       Rayonier shall prepare and file (or cause a Rayonier Entity to prepare and file) any Mixed
Business Income Tax Return for a Pre-Closing Period or a Straddle Period required to be filed by Rayonier or a Rayonier Entity and shall pay, or cause such Rayonier Entity to pay, all Taxes shown to be due and payable on such Tax Return;
provided that SpinCo shall reimburse Rayonier for any such Taxes that are SpinCo Taxes. 

  
 9 

 (ii)       Rayonier shall prepare (or cause a Rayonier Entity
to prepare), and SpinCo shall file (or cause a SpinCo Entity to file), any Mixed Business Income Tax Return for a Pre-Closing Period or a Straddle Period required to be filed by SpinCo or a SpinCo Entity, and SpinCo shall pay, or cause such SpinCo
Entity to pay, all Taxes shown to be due and payable on such Tax Return, provided that Rayonier shall reimburse SpinCo for any such Taxes that are Rayonier Taxes. 

(b)       Mixed Business Non-Income Tax Returns. 

(i)       Rayonier shall prepare and file (or cause a Rayonier Entity to prepare and file) any Mixed
Business Non-Income Tax Return for a Pre-Closing Period or a Straddle Period required to be filed by Rayonier or a Rayonier Entity and shall pay, or cause such Rayonier Entity to pay, all Taxes shown to be due and payable on such Tax Return,
provided that SpinCo shall reimburse Rayonier for any such Taxes that are SpinCo Taxes. 

(ii)       SpinCo shall prepare and file (or cause a SpinCo Entity to prepare and file) any Mixed Business
Non-Income Tax Return for a Pre-Closing Period or a Straddle Period required to be filed by SpinCo or a SpinCo Entity and shall pay, or cause such SpinCo Entity to pay, all Taxes shown to be due and payable on such Tax Return, provided that
Rayonier shall reimburse SpinCo for any such Taxes that are Rayonier Taxes. 
 Section 2.03.  Single Business
Returns. 
 (a)       Single Business Income Tax Returns. 

(i)       Rayonier shall prepare and file (or cause a Rayonier Entity to prepare and file) any Single
Business Income Tax Return for a Pre-Closing Period or a Straddle Period required to be filed by Rayonier or a Rayonier Entity and shall pay, or cause such Rayonier Entity to pay, all Taxes shown to be due and payable on such Tax Return;
provided that SpinCo shall reimburse Rayonier for any such Taxes that are SpinCo Taxes. 

(ii)       Rayonier shall prepare (or cause a Rayonier Entity to prepare), and SpinCo shall file (or cause
a SpinCo Entity to file), any Single Business Income Tax Return for a Pre-Closing Period or a Straddle Period required to be filed by SpinCo or a SpinCo Entity, and SpinCo shall pay, or cause such SpinCo Entity to pay, all Taxes shown to be due and
payable on such Tax Return, provided that Rayonier shall reimburse SpinCo for any such Taxes that are Rayonier Taxes. 

(b)       Single Business Non-Income Tax Returns. 

(i)       Rayonier shall prepare and file (or cause a Rayonier Entity to prepare and file) any Single
Business Non-Income Tax Return for a Pre-Closing Period or a Straddle Period required to be filed by Rayonier or a Rayonier Entity and shall pay, or cause such Rayonier Entity to pay, all Taxes shown to be due and payable on such Tax Return,
provided that SpinCo shall reimburse Rayonier for any such Taxes that are SpinCo Taxes. 

(ii)       SpinCo shall prepare and file (or cause a SpinCo Entity to prepare and file) any Single
Business Non-Income Tax Return for a Pre-Closing Period or a Straddle Period 

  
 10 

 
required to be filed by SpinCo or a SpinCo Entity and shall pay, or cause such SpinCo Entity to pay, all Taxes shown to be due and payable on such Tax Return, provided that Rayonier shall
reimburse SpinCo for any such Taxes that are Rayonier Taxes. 
 ARTICLE III 

TAX RETURN PROCEDURES 

Section 3.01.  Procedures relating to TRS Consolidated Returns, Mixed Business Income Tax Returns and Single Business
Income Tax Returns. 
 (a)       In connection with the preparation of any Tax Return pursuant to
Sections 2.01 or 2.02(a), SpinCo will assist and cooperate with Rayonier by preparing and providing to Rayonier, if requested in writing by Rayonier, proforma Tax Returns for SpinCo and any SpinCo Entity to be included in such TRS Consolidated
Return or equivalent financial data to be used in the preparation of a Mixed Business Income Tax Return, as applicable. Proforma Tax Returns shall be prepared in accordance with past practices, accounting methods, elections and conventions
(“Past Practice”), unless otherwise required by Law or requested in writing by Rayonier. At its option, Rayonier may engage an accounting firm of its choice to review the proforma Tax Return, supporting documentation, and statements
submitted by SpinCo and in connection therewith, shall determine whether such Tax Return was prepared in accordance with Past Practice. Prior to engaging such accounting firm, Rayonier shall provide the suggested scope for such accounting review to
SpinCo for review and discussion. All costs and expenses associated with such review will be borne by SpinCo upon receipt of invoices detailing the work performed by such accounting firm. 

(b)       All TRS Consolidated Returns, Mixed Business Income Tax Returns and Single Business Income Tax
Returns, in each case required to be prepared by Rayonier pursuant to Article II, shall be prepared by Rayonier in the manner determined by Rayonier in its sole discretion unless otherwise required by Law. Rayonier shall deliver to SpinCo for its
review a draft of such TRS Consolidated Return, Mixed Business Income Tax Return or Single Business Income Tax Return (or to the extent practicable the portion of such Tax Return that relates to SpinCo Taxes) at least 30 days prior to the Due Date
for such Tax Return, provided, however, that nothing herein shall prevent Rayonier from timely filing any such Tax Return. Rayonier shall consider any comments received from SpinCo in good faith. 

Section 3.02.  Procedures relating to Mixed Business Non-Income Tax Return and Single Business Non-Income Tax
Returns.  The Party that is required to prepare and file any Tax Return pursuant to Sections 2.02(b) or 2.03(b) (the “Preparing Party”) which reflects Taxes which are reimbursable by the other Party (the
“Reviewing Party”), in whole or in part, shall (1) unless otherwise required by Law or agreed to in writing by the Reviewing Party, prepare such Tax Return in a manner consistent with Past Practice to the extent such items
affect the Taxes for which the Reviewing Party is responsible pursuant to this Agreement, and (2) submit to the Reviewing Party a draft of any such Tax Return (or to the extent practicable the portion of such Tax Return that relates to Taxes
for which the Reviewing Party is responsible pursuant to this Agreement) along with a statement setting forth the calculation of the Tax shown due and payable on such Tax Return reimbursable by the Reviewing Party under Sections 2.02(b) or

  
 11 

 
2.03(b) at least 30 days prior to the Due Date for such Tax Return provided, however, that nothing herein shall prevent the Preparing Party from timely filing any such Mixed Business Non-Income
Tax Return or Single Business Non-Income Tax Return. The Parties shall negotiate in good faith to resolve all disputed issues. Any disputes that the Parties are unable to resolve shall be resolved by the Accounting Firm pursuant to
Section 10.01. In the event that any dispute is not resolved (whether pursuant to good faith negotiations among the Parties or by the Accounting Firm) prior to the Due Date for the filing of any Mixed Business Non-Income Tax Return or Single
Business Non-Income Tax Return, such Mixed Business Non-Income Tax Return or Single Business Non-Income Tax Return, as applicable, shall be timely filed by the Preparing Party and the Parties agree to amend such Tax Return as necessary to reflect
the resolution of such dispute in a manner consistent with such resolution. 
 Section 3.03.  Notwithstanding anything
to the contrary in Articles II, III and IV, the portion of any Tax Return that relates to any Restructuring/Distribution Taxes or any Taxes attributable to a Rayonier Disqualifying Action shall be prepared by Rayonier in the manner determined by
Rayonier in its sole discretion (or, if such Tax Return is required to be prepared by SpinCo, be prepared by SpinCo in the manner determined by Rayonier in its sole discretion); provided, however, that nothing herein shall prevent
Rayonier from timely filing any such Tax Return. 
 ARTICLE IV 

TAX TIMING AND ALLOCATION 

Section 4.01.  Straddle Period Tax Allocation.  For U.S. federal Income Tax purposes, the taxable year
of each SpinCo Entity (other than SpinCo) that was a member of the affiliated group of corporations of which TRS was the Common Parent shall end as of the close of the Closing Date. Rayonier and SpinCo shall take all actions necessary or appropriate
to close the taxable year of each SpinCo Entity (other than SpinCo) for all other Tax purposes as of the close of the Closing Date to the extent required by applicable Law. If applicable Law does not require SpinCo or a SpinCo Entity, as the case
may be, to close its taxable year on the Closing Date, then the allocation of income or deductions required to determine any Taxes or other amounts attributable to the portion of the Straddle Period ending on, or beginning after, the Closing Date
shall be made by means of a closing of the books and records of SpinCo or such SpinCo Entity as of the close of the Closing Date; provided that exemptions, allowances or deductions that are calculated on an annual or periodic basis shall be
allocated between such portions in proportion to the number of days in each such portion. 
 Section 4.02.  Timing
of Payments.  All Taxes required to be paid or caused to be paid pursuant to Article II by either Rayonier or a Rayonier Entity or SpinCo or a SpinCo Entity, as the case may be, to an applicable Taxing Authority or to be reimbursed by
Rayonier or SpinCo to the other Party pursuant to this Agreement, shall, in the case of a payment to a Taxing Authority, be paid on or before the Due Date for the payment of such Taxes and, in the case of a payment to the other Party, be paid at
least 2 business days before the Due Date for the payment of such Taxes by the other Party. 

  
 12 

 Section 4.03.  Expenses.  Except as provided in
Section 3.01 in respect of the proforma Tax Returns submitted by SpinCo or Section 10.01(b) in respect of the Accounting Firm, each Party shall bear its own expenses incurred in connection with Articles II, III and IV. 

Section 4.04.  Apportionment of SpinCo Taxes.  For all purposes of this Agreement, Rayonier, on the one
hand, and SpinCo, on the other hand, shall jointly determine in good faith which Tax Items are properly attributable to assets or activities of the SpinCo Business (and in the case of a Tax Item that is properly attributable to both the SpinCo
Business and the Rayonier Business, the allocation of such Tax Item between the SpinCo Business and the Rayonier Business) in a manner consistent with the provisions hereof and any disputes shall be resolved in accordance with Article X. 

Section 4.05.  Coordination with Article VI.  Articles II, III and IV shall not apply to any amended
Tax Returns, such amended Tax Returns being governed by Article VI. 
 ARTICLE V. 

INDEMNIFICATION 

Section 5.01.  Indemnification by Rayonier.  Rayonier shall pay, and shall indemnify and hold the
SpinCo Group harmless from and against, without duplication, (i) all Rayonier Taxes, (ii) all Taxes incurred by SpinCo or any SpinCo Entity by reason of the breach by Rayonier of any of its representations, warranties or covenants
hereunder, and (iii) any costs and expenses related to the foregoing (including reasonable fees of attorneys and experts and out-of-pocket expenses). 

Section 5.02.  Indemnification by SpinCo.  SpinCo shall pay, and shall indemnify and hold the Rayonier
Group harmless from and against, without duplication, (i) all SpinCo Taxes, (ii) all Taxes incurred by Rayonier or any Rayonier Entity by reason of the breach by SpinCo of any of its representations, warranties or covenants hereunder
(including any REIT Taxes), and (iii) any costs and expenses related to the foregoing (including reasonable fees of attorneys and experts and out-of-pocket expenses), except in each case to the extent Rayonier expressly waives such right to
receive an indemnification payment (or portion thereof) in writing. 
 Section 5.03.  Characterization of and
Adjustments to Payments. 
 (a)        For all Tax purposes, Rayonier and SpinCo agree to treat
(i) any payment required by this Agreement (other than payments with respect to interest accruing after the Closing Date) as either a contribution by Rayonier to SpinCo or a distribution by SpinCo to Rayonier, as the case may be, occurring
immediately prior to the Closing Date or as a payment of an assumed or retained liability and (ii) any payment of non-federal Taxes by or to a Taxing Authority or any payment of interest as taxable or deductible, as the case may be, to the
Party entitled under this Agreement to retain such payment or required under this Agreement to make such payment, in either case except as otherwise required by applicable Law. 

(b)        Any indemnification payment under this Article V shall be increased to take into account any
inclusion in income of the Indemnified Party arising from the receipt of such 

  
 13 

 
indemnity payment (including any REIT Taxes resulting therefrom) and shall be decreased to take into account any reduction in income of the Indemnified Party arising from such indemnified
liability, except, in the case of an increase, to the extent the Indemnified Party expressly waives such right to receive an increased indemnification payment (or portion thereof) in writing. For purposes hereof, any inclusion or reduction shall be
determined (i) using the highest marginal rates in effect at the time of the determination and (ii) assuming that the Indemnified Party will be liable for Taxes at such rate and has no Tax Attributes at the time of the determination. 

Section 5.04.  Timing of Indemnification Payments.  Indemnification payments required pursuant to this
Article V shall be paid by the Indemnifying Party to the Indemnified Party as the associated indemnifiable liabilities are incurred upon demand by the Indemnified Party, including reasonably satisfactory documentation setting forth the basis for the
amount of such indemnification payment. 
 ARTICLE VI 

REFUNDS, CARRYBACKS, AMENDMENTS AND TAX ATTRIBUTES 

Section 6.01.  Refunds. 

(a)       Except as provided in Section 6.02, Rayonier shall be entitled to all Refunds of Taxes for
which Rayonier is responsible pursuant to Article II or is or may be liable pursuant to Article V, and SpinCo shall be entitled to all Refunds of Taxes for which SpinCo is responsible pursuant to Article II or is or may be liable pursuant to Article
V. A Party receiving a Refund to which the other Party is entitled pursuant to this Agreement shall pay the amount to which such other Party is entitled within ten (10) days after the receipt of the Refund. 

(b)       In the event of an Adjustment relating to Taxes for which one Party is responsible pursuant to
Article II or is or may be liable pursuant to Article V which would have given rise to a Refund but for an offset against the Taxes for which the other Party is or may be liable pursuant to Article V (the “Benefited Party”), then
the Benefited Party shall pay to the other Party, within ten (10) days of the Final Determination of such Adjustment an amount equal to the lesser of (i) the amount of such hypothetical Refund or (ii) the amount of such reduction in
the Taxes of the Benefited Party, in each case plus interest at the rate set forth in Section 6621(a)(1) on such amount for the period from the filing date of the Tax Return that would have given rise to such Refund to the payment date. 

(c)       Notwithstanding Section 6.01(a), to the extent that a Party applies or causes to be applied
an overpayment of Taxes as a credit toward or a reduction in Taxes otherwise payable (or a Taxing Authority requires such application in lieu of a Refund) and such overpayment of Taxes, if received as a Refund, would have been payable by such Party
to the other Party pursuant to this Section 6.01, such Party shall pay such amount to the other Party no later than the Due Date of the Tax Return for which such overpayment is applied to reduce Taxes otherwise payable. 

  
 14 

 (d)       To the extent that the amount of any Refund under
this Section 6.01 is later reduced by a Taxing Authority or a Tax Proceeding, such reduction shall be allocated to the Party to which such Refund was allocated pursuant to this Section 6.01 and an appropriate adjusting payment shall be
made. 
 Section 6.02.  Carrybacks. 

(a)       The carryback of any loss, credit or other Tax Attribute from any Post-Closing Period shall be in
accordance with the provisions of the Code and Treasury Regulations (and any applicable state, local or foreign Laws). 

(b)       (i)  Subject to Sections 6.02(c) and 6.02(d), in the event that any member of the
SpinCo Group realizes any loss, credit or other Tax Attribute in a Post-Closing Period of such member, such member may elect to carry back such loss, credit or other Tax Attribute to a Pre-Closing Period or a Straddle Period of Rayonier. Rayonier
shall cooperate with SpinCo and such member in seeking from the appropriate Taxing Authority any Refund that reasonably would result from such carryback (including by filing an amended Tax Return) at SpinCo’s cost and expense; provided,
that Rayonier shall not be required to seek such Refund and SpinCo and such member shall not be permitted to seek such Refund, in each case to the extent that such Refund would reasonably be expected to materially adversely impact Rayonier
(including through an increase in Taxes or a loss or reduction of a Tax Attribute regardless of whether or when such Tax Attribute otherwise would have been used), in each case without the prior written consent of Rayonier. SpinCo (or such member)
shall be entitled to any Refund realized by any member of the Rayonier Group or the SpinCo Group resulting from such carryback. 

(ii)       Subject to Sections 6.02(c) and 6.02(d), in the event that any member of the Rayonier Group
realizes any loss, credit or other Tax Attribute in a Post-Closing Period of such member, such member may elect to carry back such loss, credit or other Tax Attribute to a Pre-Closing Period or a Straddle Period of such member. SpinCo shall
cooperate with Rayonier and such member in seeking from the appropriate Taxing Authority any Refund that reasonably would result from such carryback (including by filing an amended Tax Return), at Rayonier’s cost and expense; provided,
that SpinCo shall not be required to seek such Refund and Rayonier and such member shall not be permitted to seek such Refund, in each case to the extent that such Refund would reasonably be expected to materially adversely impact SpinCo (including
through an increase in Taxes or a loss or reduction of a Tax Attribute regardless of whether or when such Tax Attribute otherwise would have been used), in each case without the prior written consent of SpinCo. Rayonier shall be entitled to any
Refund realized by any member of the SpinCo Group or the Rayonier Group resulting from such carryback. 

(c)        Except as otherwise provided by applicable Law, if any loss, credit or other Tax Attribute of
the Rayonier Business and the SpinCo Business both would be eligible to be carried back or carried forward to the same Pre-Closing Period (had such carryback been the only carryback to such taxable period), any Refund resulting therefrom shall be
allocated between Rayonier and SpinCo proportionately based on the relative amounts of the Refunds to which the Rayonier Business and the SpinCo Business, respectively, would have been entitled had such carryback been the only carryback to such
taxable period. 

  
 15 

 (d)       To the extent the amount of any Refund under this
Section 6.02 is later reduced by a Tax Authority or a Tax Proceeding, such reduction shall be allocated to the Party to which such Refund was allocated pursuant to this Section 6.02. 

(e)       To the extent any Tax Attributes (including any Specified Credits) attributable to or arising
with respect to the assets or activities of the SpinCo Business are allocated to the Rayonier Group pursuant to Section 6.04 and are utilized to reduce the Taxes for which Rayonier or a Rayonier Entity is responsible pursuant to Articles II or
V, Rayonier shall pay to SpinCo the amount of such reduction in Taxes within ten (10) days of such time as such reduction is actually realized in cash. 

(f)       To the extent any Tax Attributes attributable to or arising with respect to the assets or
activities of the Rayonier Business are utilized to reduce the Taxes for which SpinCo or a SpinCo Entity is responsible pursuant to Articles II or V (including any Taxes resulting from any adjustment resulting from a change of accounting method
pursuant to Section 481(a) of the Code), SpinCo shall pay to Rayonier the amount of such reduction in Taxes within ten (10) days of such time as such reduction is actually realized in cash. 

Section 6.03.  Amended Tax Returns. 

(a)       TRS Consolidated Returns.  Rayonier shall, in its sole discretion, be permitted
to amend any TRS Consolidated Return for a Pre-Closing Period or a Straddle Period; provided, however, that unless otherwise required by a Final Determination, Rayonier shall not amend any such TRS Consolidated Return to the extent
that any such amendment (i) would reasonably be expected to materially adversely impact SpinCo (including through an increase in Taxes or a loss or reduction of a Tax Attribute regardless of whether or when such Tax Attribute otherwise would
have been used) or (ii) is inconsistent with Past Practice, in each case without the prior written consent of SpinCo, which consent shall not be unreasonably withheld or delayed. 

(b)       Mixed Business Income Tax Returns and Single Business Income Tax
Returns.  Rayonier shall, in its sole discretion, be permitted to amend, or to cause SpinCo or any SpinCo Entity to amend (and SpinCo shall, if Rayonier so chooses, amend or cause the applicable SpinCo Entity to amend), any Mixed
Business Income Tax Return or Single Business Income Tax Return for a Pre-Closing Period or a Straddle Period; provided, however, that unless otherwise required by a Final Determination, Rayonier shall not be permitted to so amend any
such Mixed Business Income Tax Return or Single Business Income Tax to the extent that any such amendment would reasonably be expected to materially adversely impact SpinCo (including through an increase in Taxes or a loss or reduction of a Tax
Attribute regardless of whether or when such Tax Attribute otherwise would have been used) in a Post-Closing Period or the portion of a Straddle Period beginning after the Closing Date, in each case without the prior written consent of SpinCo. 

(c)       Mixed Business Non-Income Tax Returns and Single Business Non-Income Tax
Returns.  Each of Rayonier or SpinCo, as the case may be, shall, in its sole discretion, be permitted to amend (or cause or permit to be amended) any Mixed Business Non-Income Tax Return or Single Business Non-Income Tax Return;
provided, however, that if any Party wishes to amend any such Tax Return for which the other Party may be liable for Taxes pursuant to this 

  
 16 

 
Agreement, then, unless otherwise required by a Final Determination, Rayonier or SpinCo, as the case may be shall not be permitted to so amend (or cause or permit to be amended) any such Mixed
Business Non-Income Tax Return or Single Business Non-Income Tax Return, as the case may be, to the extent that any such amendment (i) would reasonably be expected to materially adversely impact the other Party (including through an increase in
Taxes or a loss or reduction of a Tax Attribute regardless of whether or when such Tax Attribute otherwise would have been used) or (ii) is inconsistent with Past Practice, in each case without the prior written consent of such other Party,
which consent shall not be unreasonably withheld or delayed. 
 Section 6.04.    Tax Attributes. 

(a)       Tax Attributes arising in a Pre-Closing Period shall be allocated to the Rayonier Group
(including to TRS) and the SpinCo Group in accordance with the Code and Treasury Regulations (and any applicable state, local and foreign Laws). Rayonier and SpinCo shall jointly determine the allocation of such Tax Attributes arising in Pre-Closing
Periods as soon as reasonably practicable following the Closing Date, and hereby agree to compute all Taxes for Post-Closing Periods consistently with that determination unless otherwise required by a Final Determination. 

(b)       To the extent that the amount of any Tax Attribute is later reduced or increased by a Taxing
Authority or Tax Proceeding, such reduction or increase shall be allocated to the Party to which such Tax Attribute was allocated pursuant to Section 6.04(a). 

Section 6.05.    Treatment of Deductions Associated with Equity-Related Compensation. 

(a)       Solely Rayonier or any member of the Rayonier Group, as the case may be, shall be entitled to
claim any Tax deduction associated with the following items on its respective Tax Return: 

(i)       The exercise of any SpinCo Options by any Rayonier Service Provider, the vesting or settlement
of SpinCo Restricted Stock Awards and SpinCo Performance Share Awards held by any Rayonier Service Provider and the payment of any dividends or dividend equivalents with respect to such SpinCo Restricted Stock Awards and SpinCo Performance Share
Awards to Rayonier Service Providers. 
 (ii)       The exercise of any Post-Separation Rayonier Options
by any Rayonier Service Provider, the vesting of Post-Separation Rayonier Restricted Stock Awards and Post-Separation Performance Share Awards held by any Rayonier Service Provider and the payment of any dividends or dividend equivalents with
respect to such Post-Separation Rayonier Restricted Stock Awards and Post-Separation Performance Share Awards to Rayonier Service Providers. 

(b)       Solely SpinCo or any member of the SpinCo Group, as the case may be, shall be entitled to claim
any Tax deduction associated with the following items on its respective Tax Return: 
 (i)       The
exercise of any Post-Separation Rayonier Options by any SpinCo Service Provider, the vesting of Post-Separation Rayonier Restricted Stock Awards and Post-

  
 17 

 
Separation Performance Share Awards held by any SpinCo Service Provider and the payment of any dividends or dividend equivalents with respect to such Post-Separation Rayonier Restricted Stock
Awards and Post-Separation Performance Share Awards to SpinCo Service Providers. 
 (ii)       The
exercise of any SpinCo Options by any SpinCo Service Provider, the vesting or settlement of SpinCo Restricted Stock Awards and SpinCo Performance Share Awards held by any SpinCo Service Provider and the payment of any dividends or dividend
equivalents with respect to such SpinCo Restricted Stock Awards and SpinCo Performance Share Awards to SpinCo Service Providers. 

(c)       The following terms shall have the following meanings: 

(i)       “SpinCo Service Provider” means any SpinCo Group Employee, Former SpinCo Group
Employee or Transferred Director (each as defined in the Employee Matters Agreement) at the time of the exercise, vesting, settlement disqualifying disposition or payment; 

(ii)       “Rayonier Service Provider” means any Rayonier Group Employee, Former Rayonier
Group Employee, or former non-employee director of Rayonier (who is not a Transferred Director) at the time of the exercise, vesting, disqualifying disposition or payment. 

(d)       Capitalized terms used in this Section 6.05 but not otherwise defined herein shall have the
respective meanings ascribed to them in the Employee Matters Agreement. 
 ARTICLE VII 

TAX PROCEEDINGS 

Section 7.01.  Notification of Tax Proceedings.  Within ten (10) days after an Indemnified Party
becomes aware of the commencement of a Tax Proceeding that may give rise to Taxes for which an Indemnifying Party is responsible pursuant to Article V, such Indemnified Party shall notify the Indemnifying Party of such Tax Proceeding, and thereafter
shall promptly forward or make available to the Indemnifying Party copies of notices and communications relating to such Tax Proceeding. The failure of the Indemnified Party to notify the Indemnifying Party of the commencement of any such Tax
Proceeding within such ten (10) day period or promptly forward any further notices or communications shall not relieve the Indemnifying Party of any obligation which it may have to the Indemnified Party under this Agreement except to the extent
that the Indemnifying Party is actually prejudiced by such failure. 
 Section 7.02.  Statute of
Limitations.  Any extension of the statute of limitations for any Taxes or a Tax Return for any Pre-Closing Period or a Straddle Period shall be made by the Party required to file such Tax Return or pay such Taxes to a Taxing
Authority; provided that to the extent such Taxes or Tax Return may result in an indemnification obligation pursuant to this Agreement by the Party other than the filing Party, the Indemnifying Party may, in its reasonable discretion, require
that the filing Party extend the applicable statute of limitations for such period as determined by the Indemnifying Party. 

Section 7.03.  Tax Proceeding Procedures Generally. 

  
 18 

 (a)       Except as provided in Section 7.04, Rayonier
shall be entitled to contest, compromise and settle any Adjustment proposed, asserted or assessed pursuant to any Tax Proceeding with respect to any TRS Consolidated Return or Mixed Business Income Tax Return and any Mixed Business Non-Income Tax
Return or Single Business Return required to be prepared by Rayonier or a Rayonier Entity pursuant to Article II (including in respect of any Refund, carryback or amendment relating to any such Tax Return pursuant to Article VI), and any such
defense shall be made diligently and in good faith; provided that to the extent that such Tax Proceeding could materially affect the amount of Taxes for which SpinCo is responsible pursuant to Articles II and V, Rayonier (1) shall keep SpinCo
informed in a timely manner of all actions proposed to be taken by Rayonier with respect to such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that relates to Taxes for which SpinCo is responsible pursuant to
Articles II and V) and (2), shall permit SpinCo to participate in all proceedings with respect to such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that relates to Taxes for which SpinCo is responsible pursuant to
Article V) and shall not settle any such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that relate to Taxes, or the Tax Items, for which SpinCo is responsible pursuant to Article V) without the prior written consent
of SpinCo, which shall not be unreasonably withheld, delayed or conditioned. 
 (b)       Except as
provided in Section 7.04, SpinCo shall be entitled to contest, compromise and settle any Adjustment proposed, asserted or assessed pursuant to any Tax Proceeding with respect to any Mixed Business Non-Income Tax Return or Single Business Return
required to be prepared by SpinCo or a SpinCo Entity pursuant to Article II (including in respect of any Refund, carryback or amendment relating to any such Tax Return pursuant to Article VI), and any such defense shall be made diligently and in
good faith; provided that to the extent that such Tax Proceeding could materially affect the amount of Taxes for which Rayonier is responsible pursuant to Articles II and V, SpinCo (1) shall keep Rayonier informed in a timely manner of all
actions proposed to be taken by SpinCo with respect to such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that relates to Taxes for which Rayonier is responsible pursuant to Articles II and V) and (2) shall
permit Rayonier to participate in all proceedings with respect to such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that relates to Taxes for which Rayonier is responsible pursuant to Articles II and V) and shall
not settle any such Tax Proceeding (or to the extent practicable the portion of such Tax Proceeding that relate to Taxes, or the Tax Items, for which Rayonier is responsible pursuant to Article V) without the prior written consent of Rayonier, which
shall not be unreasonably withheld, delayed or conditioned. 
 Section 7.04.  Tax Proceedings in respect of
Restructuring/Distribution Taxes and Disqualifying Actions. 
 (a)       Rayonier and SpinCo shall be
entitled to jointly contest, compromise and settle any Adjustment proposed, asserted or assessed pursuant to any Tax Proceeding relating to (i) Restructuring/Distribution Taxes and (ii) any Taxes attributable to a SpinCo Disqualifying
Action. 
 (b)       Rayonier shall be entitled to contest, compromise and settle any Adjustment
proposed, asserted or assessed pursuant to any Tax Proceeding relating to any Taxes attributable 

  
 19 

 
to a Rayonier Disqualifying Action and shall defend such Adjustment diligently and in good faith; provided, that, unless waived by the Parties in writing, Rayonier shall
(i) keep SpinCo informed in a timely manner of all actions taken or proposed to be taken by Rayonier, (ii) provide copies of all correspondence or filings to be submitted to any Taxing Authority or judicial authority to SpinCo for its
prior review and consent, which consent shall not be unreasonably withheld and (iii) provide SpinCo with written notice reasonably in advance of, and SpinCo shall have the right to attend, any formally scheduled meetings with any Taxing
Authority or hearings or proceedings before any judicial authority. 
 ARTICLE VIII 

TAX-FREE STATUS OF THE DISTRIBUTION 

Section 8.01.  Representations and Warranties. 

(a)       SpinCo.  SpinCo hereby represents and warrants or covenants and agrees, as
appropriate, that the facts presented and the representations made in (A) the rayonier groupg, (B) the Opinion, (C) each submission to the IRS in connection with the IRS Ruling, (D) the representation letter from Rayonier
addressed to Counsel supporting the Opinion, (E) the representation letter from SpinCo addressed to Counsel supporting the Opinion and (F) any other materials delivered or deliverable by Rayonier or SpinCo in connection with the rendering
by Counsel of the Opinion and the issuance by the IRS of the IRS Ruling (all of the foregoing, collectively, the “Reliance Materials”), to the extent descriptive of the SpinCo Group (each of the distributions described in the IRS
Ruling and the other Reliance Materials to the extent that they relate to the SpinCo Group and the plans, proposals, intentions and policies of the SpinCo Group), are, or will be from the time presented or made through and including the Effective
Time and thereafter as relevant, true, correct and complete in all respects. 

(b)       Rayonier.  Rayonier hereby represents and warrants or covenants and agrees, as
appropriate, that (i) it has delivered complete and accurate copies of the Reliance Materials to SpinCo and (ii) the facts presented and the representations made therein, to the extent descriptive of the Rayonier Group (including the
business purposes for each of the distributions described in the IRS Ruling and the other Reliance Materials to the extent that they relate to the Rayonier Group and the plans, proposals, intentions and policies of the Rayonier Group), are, or will
be from the time presented or made through and including the Effective Time and thereafter as relevant, true, correct and complete in all respects. 

(c)       No Contrary Knowledge.  Each of Rayonier and SpinCo represents and warrants that
it knows of no fact (after due inquiry) that may cause the Tax treatment of the Restructuring or the Distribution to be other than the Tax-Free Status of the Transactions. 

(d)       No Contrary Plan.  Each of Rayonier and SpinCo represents and warrants that
neither it, nor any of its Affiliates, has any plan or intent to take any action which is inconsistent with any statements or representations made in the Reliance Materials. 

  
 20 

 Section 8.02.  Restrictions Relating to the Distribution. 

(a)       General.  Neither Rayonier nor SpinCo shall, nor shall Rayonier or SpinCo permit
any Rayonier Entity or any SpinCo Entity, respectively, to take any action that constitutes (or fail to take an action, the omission of which would result in, as applicable) a Disqualifying Action described in the definitions of Rayonier
Disqualifying Action and SpinCo Disqualifying Action, respectively. 

(b)       Restrictions.  Prior to the first day following the second anniversary of the
Distribution (the “Restriction Period”), SpinCo: 
 (i)       shall continue and cause
to be continued the active conduct of the SpinCo Business, taking into account Section 355(b)(3) of the Code, in all cases as conducted immediately prior to the Distribution. 

(ii)       shall not, and shall not permit any SpinCo Entity (other than any SpinCo Entity
(A) treated as an entity disregarded from its owner for federal income tax purposes or (B) that owns no, or only a de minimis amount of, assets) to, voluntarily dissolve or liquidate (including any action that is a liquidation for
federal income tax purposes). 
 (iii)       shall not (1) enter into any Proposed Acquisition
Transaction or, to the extent SpinCo has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur, (2) redeem or otherwise repurchase (directly or through an Affiliate) any stock, or
rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48), (3) amend its certificate of
incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the relative voting rights of its capital stock (including through the conversion of any capital stock into
another class of capital stock), (4) merge or consolidate with any other Person and shall not permit any SpinCo Entity to merge or consolidate with any other Person or (5) take any other action or actions (including any action or
transaction that would be reasonably likely to be inconsistent with any representation made in the Reliance Materials) which in the aggregate (and taking into account any other transactions described in this Section 8.02(b)(iii)) would be
reasonably likely to have the effect of causing or permitting one or more Persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in SpinCo or otherwise jeopardize the
Tax-Free Status of the Transactions. 
 (iv)       shall not, and shall not permit any SpinCo Entity (or
members of their respective SAG) to sell, transfer, or otherwise dispose of or agree to, sell, transfer or otherwise dispose (including in any transaction treated for federal income tax purposes as a sale, transfer or disposition) of assets
(including, any shares of capital stock of a Subsidiary) that, in the aggregate, constitute more than 30% of the gross assets of such SpinCo Entity or more than 30% of the consolidated gross assets of such SpinCo Entity and members of its respective
SAG. The foregoing sentence shall not apply to (A) sales, transfers, or dispositions of assets in the Ordinary Course of Business, (B) any cash paid to acquire assets from an unrelated Person in an arm’s-length transaction,
(C) any assets transferred to a Person that is disregarded as an entity separate 

  
 21 

 
from the transferor for federal income tax purposes or (D) any mandatory or optional repayment (or pre-payment) of any indebtedness of such SpinCo Entity (or any member of its respective
SAG). The percentages of gross assets or consolidated gross assets of such SpinCo Entity or its respective SAG, as the case may be, sold, transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets of such
SpinCo Entity and the members of its respective SAG as of the Closing Date. For purposes of this Section 8.02(b)(iv), a merger of a SpinCo Entity (or a member of its SAG) with and into any Person shall constitute a disposition of all of the
assets of such SpinCo Entity or such member. 
 (c)       Notwithstanding the restrictions imposed by
Sections 8.02(b), during the Restriction Period, SpinCo may proceed with any of the actions or transactions described therein, if (i) SpinCo shall first have requested Rayonier to obtain a supplemental ruling in accordance with
Section 8.03(a) of this Agreement to the effect that such action or transaction will not affect the Tax-Free Status of the Transactions and Rayonier shall have received such a supplemental ruling in form and substance reasonably satisfactory to
it, (ii) SpinCo shall have provided to Rayonier an Unqualified Tax Opinion in form and substance reasonably satisfactory to Rayonier, or (iii) Rayonier shall have waived in writing the requirement to obtain such ruling or opinion. In
determining whether a ruling or opinion is satisfactory, Rayonier shall exercise its discretion, in good faith, solely to preserve the Tax-Free Status of the Transactions and may consider, among other factors, the appropriateness of any underlying
assumptions or representations used as a basis for the ruling or opinion and the views on the substantive merits. For the avoidance of doubt, SpinCo shall not be relieved of any indemnification obligation pursuant to Article V or otherwise under
this Agreement as a result of having satisfied the requirements of clause (i), (ii) or (iii) of this Section 8.02(c). 

(d)       Certain Issuances of Capital Stock.  If SpinCo proposes to enter into any
Section 8.02(d) Acquisition Transaction or, to the extent SpinCo has the right to prohibit any Section 8.02(d) Acquisition Transaction, proposes to permit any Section 8.02(d) Acquisition Transaction to occur, in each case, during the
Restriction Period, SpinCo, shall provide Rayonier, no later than ten (10) days following the signing of any written agreement with respect to any Section 8.02(d) Acquisition Transaction, with a written description of such transaction
(including the type and amount of SpinCo capital stock to be issued in such transaction). 

(e)       Tax Reporting.  Each of Rayonier and SpinCo covenants and agrees that it will
not take, and will cause its respective Affiliates to refrain from taking, any position on any Income Tax Return that is inconsistent with the Tax-Free Status of the Transactions. 

Section 8.03.  Procedures Regarding Opinion and Rulings. 

(a)       If SpinCo notifies Rayonier that it desires to take one of the actions described in Sections
8.02(b) (a “Notified Action”), Rayonier shall cooperate with SpinCo and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a supplemental ruling from the IRS or an Unqualified Tax Opinion for the
purpose of permitting SpinCo to take the Notified Action unless Rayonier shall have waived the requirement to obtain such ruling or opinion. If such a ruling is to be sought, Rayonier shall apply for such ruling and Rayonier and SpinCo shall jointly
control the process of obtaining such ruling. In no event shall Rayonier be required to file any ruling request under this Section 8.03(a) unless SpinCo represents that (i) it has read such

  
 22 

 
ruling request, and (ii) all information and representations, if any, relating to any member of the SpinCo Group, contained in such ruling request documents are (subject to any
qualifications therein) true, correct and complete. SpinCo shall reimburse Rayonier for all reasonable costs and expenses incurred by the Rayonier Group in obtaining a ruling or Unqualified Tax Opinion requested by SpinCo within ten (10) days
after receiving an invoice from Rayonier therefor. 
 (b)       Rayonier shall have the right to obtain a
supplemental ruling or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If Rayonier determines to obtain such ruling or opinion, SpinCo shall (and shall cause each SpinCo Entity to) cooperate with Rayonier and take any and
all actions reasonably requested by Rayonier in connection with obtaining such ruling or opinion (including by making any representation or reasonable covenant or providing any materials requested by the IRS or the law firm issuing such opinion);
provided that SpinCo shall not be required to make (or cause a SpinCo Entity to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control. In connection with
obtaining such ruling, Rayonier shall apply for such ruling and shall have sole and exclusive control over the process of obtaining such ruling. Rayonier and SpinCo shall each bear its own costs and expenses in obtaining a ruling or Unqualified Tax
Opinion requested by Rayonier. 
 (c)       Except as provided in Sections 6.03(a) and (b) neither
SpinCo nor any SpinCo Affiliate shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or otherwise) at any time concerning the Restructuring or Distribution (including the impact of any transaction on the
Restructuring or Distribution). 
 ARTICLE IX 

COOPERATION 

Section 9.01.  General Cooperation. 

The Parties shall each cooperate fully (and each shall cause its respective Subsidiaries to cooperate fully) with all reasonable requests in
writing (“Information Request”) from another Party hereto, or from an agent, representative or advisor to such Party, in connection with the preparation and filing of Tax Returns (including the preparation of Tax Packages), claims
for Refunds, Tax Proceedings, and calculations of amounts required to be paid pursuant to this Agreement, in each case, related or attributable to or arising in connection with Taxes of any of the Parties or their respective Subsidiaries covered by
this Agreement and the establishment of any reserve required in connection with any financial reporting (a “Tax Matter”). Such cooperation shall include the provision of any information reasonably necessary or helpful in connection
with a Tax Matter (“Information”) and shall include, without limitation, at each Party’s own cost: 

(i)       the provision of any Tax Returns of the Parties and their respective Subsidiaries, books,
records (including information regarding ownership and Tax basis of property), documentation and other information relating to such Tax Returns, including accompanying schedules, related work papers, and documents relating to rulings or other
determinations by Taxing Authorities; 

  
 23 

 (ii)       the execution of any document (including any power
of attorney) in connection with any Tax Proceedings of any of the Parties or their respective Subsidiaries, or the filing of a Tax Return or a Refund claim of the Parties or any of their respective Subsidiaries; 

(iii)       the use of the Party’s reasonable best efforts to obtain any documentation in connection
with a Tax Matter; and 
 (iv)       the use of the Party’s reasonable best efforts to obtain any
Tax Returns (including accompanying schedules, related work papers, and documents), documents, books, records or other information in connection with the filing of any Tax Returns of any of the Parties or their Subsidiaries. 

Each Party shall make its employees, advisors, and facilities available, without charge, on a reasonable and mutually convenient basis in
connection with the foregoing matters. 
 Section 9.02.  Retention of Records.  Rayonier and SpinCo
shall retain or cause to be retained all Tax Returns, schedules and work papers, and all material records or other documents relating thereto in their possession, until sixty (60) days after the expiration of the applicable statute of
limitations (including any waivers or extensions thereof) of the taxable periods to which such Tax Returns and other documents relate or until the expiration of any additional period that any Party reasonably requests, in writing, with respect to
specific material records or documents. A Party intending to destroy any material records or documents shall provide the other Party with reasonable advance notice and the opportunity to copy or take possession of such records and documents. The
Parties hereto will notify each other in writing of any waivers or extensions of the applicable statute of limitations that may affect the period for which the foregoing records or other documents must be retained. 

ARTICLE X 

MISCELLANEOUS 

Section 10.01. Dispute Resolution. 

(a)       In the event of any dispute between the Parties as to any matter covered by this Agreement, the
Parties shall agree as to whether such dispute shall be governed by the procedures set forth in Section 10.01(b) of this Agreement or in Article VII of the Separation and Distribution Agreement. If the Parties cannot agree within thirty
(30) days from the time such dispute arises as to which procedure will govern such dispute, such disagreement shall be resolved pursuant to Article VII of the Separation and Distribution Agreement. 

(b)       With respect to any dispute governed by this Section 10.01(b), the Parties shall appoint a
nationally recognized “Big Four” independent public accounting firm (other than the current auditing firm of Rayonier or SpinCo) (the “Accounting Firm”) to resolve such dispute. The Parties shall cooperate in good faith in
jointly selecting the Accounting Firm. If the Parties cannot agree on a nationally recognized firm within thirty (30) days from the time such dispute arises, the Parties shall appoint the firm Grant Thornton LLP to be the Accounting Firm. In
this regard, the Accounting Firm shall make determinations with respect to the disputed items based 

  
 24 

 
solely on representations made by Rayonier and SpinCo and their respective representatives, and not by independent review, and shall function only as an expert and not as an arbitrator and shall
be required to make a determination in favor of one Party only. The Parties shall require the Accounting Firm to resolve all disputes no later than fifteen (15) days after the submission of such dispute to the Accounting Firm, but in no event
later than the Due Date for the payment of Taxes or the filing of the applicable Tax Return, if applicable, and agree that all decisions by the Accounting Firm with respect thereto shall be final and conclusive and binding on the Parties. The
Accounting Firm shall resolve all disputes in a manner consistent with this Agreement and, to the extent not inconsistent with this Agreement, in a manner consistent with the Past Practices of Rayonier and its Subsidiaries, except as otherwise
required by applicable Law. The Parties shall require the Accounting Firm to render all determinations in writing and to set forth, in reasonable detail, the basis for such determination. The fees and expenses of the Accounting Firm shall be paid by
the non-prevailing Party. 
 Section 10.02. Tax Sharing Agreements.  All Tax sharing, indemnification and
similar agreements, written or unwritten, as between Rayonier or a Rayonier Entity, on the one hand, and SpinCo or a SpinCo Entity, on the other (other than this Agreement, the Separation and Distribution Agreement, or any other Ancillary
Agreement), shall be or shall have been terminated no later than the Effective Time and, after the Effective Time, none of Rayonier or a Rayonier Entity, or SpinCo or a SpinCo Entity shall have any further rights or obligations under any such Tax
sharing, indemnification or similar agreement. 
 Section 10.03. Interest on Late Payments.  With respect to
any payment between the Parties pursuant to this Agreement not made by the due date set forth in this Agreement for such payment, the outstanding amount will accrue interest at a rate per annum equal to the rate in effect for underpayments under
Section 6621 of the Code from such due date to and including the earlier of the ninetieth (90th) day or the payment date and thereafter will accrue interest at a rate per annum equal to 9%. 

Section 10.04. Survival of Covenants.  Except as otherwise contemplated by this Agreement, all covenants and
agreements of the Parties contained in this Agreement shall survive the Effective Time and remain in full force and effect in accordance with their applicable terms, provided, however, that the representations and warranties and all indemnification
for Taxes shall survive until sixty (60) days following the expiration of the applicable statute of limitations (taking into account all extensions thereof), if any, for assessment of the Tax that gave rise to the indemnification, provided,
further, that, in the event that notice for indemnification has been given within the applicable survival period, such indemnification shall survive until such time as such claim is finally resolved. 

Section 10.05. Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable
of being enforced, the Parties to this Agreement shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner. 

  
 25 

 Section 10.06. Entire Agreement.  Except as otherwise expressly
provided in this Agreement, this Agreement constitutes the entire agreement of the Parties hereto with respect to the subject matter of this Agreement and supersedes all prior agreements and undertakings, both written and oral, between or on behalf
of the Parties hereto with respect to the subject matter of this Agreement. 
 Section 10.07. No Third-Party
Beneficiaries.  Except as provided in Article V with respect to indemnified Parties, this Agreement is for the sole benefit of the Parties to this Agreement and their respective Subsidiaries and their permitted successors and assigns
and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 

Section 10.08. Specific Performance.  In the event of any actual or threatened default in, or breach of, any of
the terms, conditions and provisions of this Agreement, the Party who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and
all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, may be inadequate compensation for
any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived by the Parties to this Agreement. 

Section 10.09. Amendment.  No provision of this Agreement may be amended or modified except by a written
instrument signed by the Parties to this Agreement. No waiver by any Party of any provision of this Agreement shall be effective unless explicitly set forth in writing and executed by the Party so waiving. The waiver by any Party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any other subsequent breach. 
 Section 10.10.
Rules of Construction.  Interpretation of this Agreement shall be governed by the following rules of construction: (i) words in the singular shall be held to include the plural and vice versa and words of one gender shall
be held to include the other gender as the context requires; (ii) references to the terms Article, Section, paragraph, clause, Exhibit and Schedule are references to the Articles, Sections, paragraphs, clauses, exhibits and schedules of this
Agreement unless otherwise specified; (iii) the terms “hereof,” “herein,” “hereby,” “hereto,” and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto;
(iv) references to “$” shall mean U.S. dollars; (v) the word “including” and words of similar import when used in this Agreement shall mean “including without limitation,” unless otherwise specified;
(vi) the word “or” shall not be exclusive; (vii) references to “written” or “in writing” include in electronic form; (viii) provisions shall apply, when appropriate, to successive events and transactions;
(ix) the table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (x) Rayonier and SpinCo have each participated in the
negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or
burdening either Party by virtue of the authorship of any of the 

  
 26 

 
provisions in this Agreement or any interim drafts of this Agreement; and (xi) a reference to any Person includes such Person’s successors and permitted assigns. 

Section 10.11. Counterparts.  This Agreement may be executed in one or more counterparts each of which when
executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or portable document format (PDF) shall be
as effective as delivery of a manually executed counterpart of any such Agreement. 
 Section 10.12. Coordination with
Separation and Distribution Agreement.  In the event of any inconsistency between this Agreement and the Separation and Distribution Agreement (or any Ancillary Agreement) with respect to matters addressed herein the provisions
of this Agreement shall control (except to the extent set forth in Article X). 
 Section 10.13. Coordination with the
Employee Matters Agreement.  To the extent any covenants or agreements between the Parties with respect to employee withholding Taxes are expressly set forth in the Employee Matters Agreement, such Taxes shall be governed exclusively
by the Employee Matters Agreement and not by this Agreement. 
 Section 10.14. Governing Law.  This Agreement
(and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common
law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware, including all matters of validity,
construction, effect, enforceability, performance and remedies. 
 Section 10.15. Assignability.  This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. Neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written
consent of the other Party hereto; provided, however, that each Party may assign all of its rights and obligations under this Agreement to any of its Subsidiaries; provided, further, that no such assignment shall release
the assigning Party from any of its liabilities or obligations under this Agreement. Notwithstanding the foregoing, no consent for assignment shall be required for the assignment of a Party’s rights and obligations under this Agreement, the
Separation and Distribution Agreement and all other Ancillary Agreements in whole (i.e., the assignment of a party’s rights and obligations under this Agreement and all Ancillary Agreements all at the same time) in connection with a
change of control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant Party by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party.
Nothing herein is intended to, or shall be construed to, prohibit either Party or any of its Subsidiaries from being party to or undertaking a transaction that would result in a change of control. 

Section 10.16. Notices.  Any notice, demand, claim or other communication under this Agreement will be in writing
and will be deemed to have been given (a) on delivery if delivered personally; (b) on the date on which delivery thereof is guaranteed by the carrier if delivered by a 

  
 27 

 
national courier guaranteeing delivery with an fixed number of days of sending; or (c) on the date of facsimile transmission thereof if delivery is confirmed, but, in each case, only if
addressed to the Parties in the following manner at the following addresses or facsimile numbers (or at the other address or other number as a Party may specify by notice to the others): 

If to Rayonier, to: 
 Rayonier
Inc. 
 1301 Riverplace Boulevard, Suite 2300 

Jacksonville, FL 32207 

Attention: General Counsel 

Facsimile: (904) 598-2250 

Rayonier Inc. 
 1301 Riverplace
Boulevard, Suite 2300 
 Jacksonville, FL 32207 

Attention: Chief Financial Officer 

Facsimile: (904) 357-9101 

with a copy to: 
 Wachtell,
Lipton, Rosen & Katz 
 51 West 52nd Street 

New York, NY 10019 
 Attention:
Joshua M. Holmes 
 Facsimile: (212) 403-2000 

If to SpinCo, to: 
 Rayonier
Holding Company 
 1301 Riverplace Boulevard, Suite [—] 

Jacksonville, FL 32207 

Attention: General Counsel 

Facsimile: [—] 

Rayonier Holding Company 
 1301
Riverplace Boulevard, Suite [—] 
 Jacksonville, FL 32207 

Attention: Chief Financial Officer 

Facsimile: [—] 

with a copy to: 
 Wachtell,
Lipton, Rosen & Katz 
 51 West 52nd Street 

New York, NY 10019 
 Attention:
Joshua M. Holmes 

  
 28 

 Facsimile: (212) 403-2000 

Section 10.17. Effective Date.  This Agreement shall become effective only upon the occurrence of the
Distribution. 
 [The remainder of this page is intentionally left blank.] 

  
 29 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and
year first above written. 
  

			
	RAYONIER INC.
		
	By	 	  

	Name:	 	
	Title:	 	
	
	RAYONIER HOLDING COMPANY
		
	By	 	  

	Name:	 	
	Title:	 	

  
 30EX-10.1

 Exhibit 10.1 
 IMPORTANT - ACTION REQUIRED: In order for your FY14 stock awards to become effective, you must use the voting button at the top of this email, click on “I agree to the award
terms & conditions” and reply by 28 February 2014. Failure to respond by this date will result in forfeiture of your award. 
 Company Confidential Communication to: «First_name» «Last_name» 
 I would
like to take this opportunity to thank you for your commitment to the Company both in the past and most importantly looking forward. You play an important role in the future performance of our Company. 

One of the priorities of our management compensation program is to provide you with the opportunity to share in the long-term success of Air Products. As
a result, I am pleased to present your 2014 stock awards under the Company’s Long-Term Incentive Plan. These awards make up the long-term component of your total pay package and link your personal wealth to the performance of the Company.

 Your 2014 awards are valued at $            and include: 

 

	 	•	 	 A Nonstatutory Stock Option to purchase             shares of Common Stock at a
purchase price of $107.69 per share, which is the 2 December 2013 closing sale price of a share of Common Stock, valued at $            ; and 

 

	 	•	 	 An award of            4-Year Restricted Shares of Company Common Stock issued to
you as of 2 December 2013 valued at $            ; and 

  

	 	•	 	             Deferred Stock Units with a three year performance period valued at
$            , each Unit (a “Performance Share”) being equivalent in value to one share of Common Stock. 

Thank you again for your dedication and on-going contributions to Air Products. 
 Your 2014 Awards are subject to and contingent upon your agreement to the attached conditions described in Exhibit A. Please read these conditions carefully, particularly the descriptions of
“Prohibited Activities”. This letter, together with its Exhibit, constitutes the agreement governing your 2014 Awards (“Awards Agreement”). Your 2014 Awards are also at all times subject to the applicable provisions of the
Long-Term Incentive Plan (the “Plan”) and to any determinations made by the Management Development and Compensation Committee of the Company’s Board of Directors (the “Committee”) or its delegate, with respect to your 2014
Awards as contemplated or permitted by the Plan or the Conditions. The Committee has established a one-year holding period for a portion of your Stock Options as further explained in Section 7 of Exhibit A. 

Neither your 2014 Awards, this Award Agreement or the Plan constitute a contract of employment; nor do they guarantee your continued employment for any
period required for all or any of your 2014 Awards to vest, become exercisable, be earned or be paid out. Except as otherwise indicated all capitalized words used in this Awards Agreement have the meanings described in the Plan. 

 WITNESSETH the due execution of this Awards Agreement at Allentown, Pennsylvania
effective as of the 2nd day of December 2013 intending to
be legally bound hereby. 
  

			
	AIR PRODUCTS AND CHEMICALS, INC.
		
	By:	 	
		 	

		 	John E. McGlade

 Exhibit 

 EXHIBIT A 
 AIR PRODUCTS AND CHEMICALS, INC. (the “Company”) 
 LONG-TERM
INCENTIVE PLAN 
 FY2014 AWARD AGREEMENT 

 

	1.	As described in the foregoing grant letter, you are hereby granted FY2014 Awards consisting of Stock Options (“Options”), Restricted Shares of Company Common
Stock (“Restricted Shares”), and Deferred Stock Units to be called “Performance Shares” under the Air Products and Chemicals, Inc. Long-Term Incentive Plan (the “Plan”). The Options are “Nonstatutory Stock
Options” as described in Section 6 of the Plan. The Restricted Shares are described in Section 8 of the Plan. The Deferred Stock Units are described in Section 9 of the Plan. The Management Development and Compensation Committee
of the Company’s Board of Directors (the “Committee”) has approved these Awards subject to the applicable provisions of the Plan and the terms of this Agreement, and contingent upon your acceptance of this Agreement. Except as noted
herein, all capitalized terms used in this Agreement have the meaning ascribed to them in the Plan. A copy of the Plan is available from the Corporate Secretary’s Office of the Company, 7201 Hamilton Boulevard, Allentown,
PA 18195-1501. 

  

	2.	Each Option entitles you to purchase one share of Company Common Stock (“Share”) at a purchase price of $107.69 (the “Grant Price”) as described
below. You can first purchase Shares as follows: (i) up to one-third of the Shares may be purchased on or after 2 December 2014 and (ii) up to an additional one-third of such Shares may be purchased on or after 2 December 2015
and 2016, respectively. The Options are granted as of 2 December 2013 and will continue for a period of ten (10) years from such grant date and will expire and no longer be exercisable after the close of the New York Stock Exchange on
2 December 2023. Any Option which is unexercised as of the close of the New York Stock Exchange on 2 December 2023 and which has not terminated in accordance with Paragraph 4 of this Agreement, will be settled by a Net Exercise
whereby the Company will issue you shares of Common Stock equal to the number of shares covered by the Option, reduced by the number of whole shares that has a Fair Market Value equal to or in excess of the sum of the aggregate Grant Price of the
Options and the minimum statutory withholding tax obligation arising from the Net Exercise of the Options, and shall remit any excess of the Fair Market Value of such shares to you. 

	3.	You may purchase Shares covered by an Option by providing to the Company’s agent, Fidelity Stock Plan Services, LLC or any successor thereto
(“Fidelity”), notice of exercise of the Option in a form designated by Fidelity and the Grant Price of the Shares. Payment of the Grant Price and applicable taxes may be made in cash or by providing an irrevocable exercise notice coupled
with irrevocable instructions to Fidelity to simultaneously sell all or portion of the Shares and deliver to the Company on the settlement date the portion of the proceeds representing the Grant Price and any taxes to be withheld. Payment of the
Grant Price may also be made by delivery or attestation of ownership of other Shares of Common Stock owned by you with a Fair Market Value equal to the Grant Price, in which case the number of Shares acquired in the exercise will be reduced by an
amount equal in value to the amount of any taxes required to be withheld and by the number of Shares as to which ownership was attested. 

  

	4.	Except as provided below, your Options terminate as of the close of business on the last day of your employment with the Company and all its Subsidiaries. Upon your,
death, Disability, or Retirement on or after 1 December 2014, your Options will not terminate and any unexercisable portion of the Options will be extended until its expiration (that is, will become and be exercisable) as if you have continued
to be an active employee of the Company or a Subsidiary. If your employment with the Company or a Subsidiary is involuntarily terminated by the Company on or after 1 December 2014 due to action necessitated by business conditions, including,
but not limited to, job eliminations, workforce reductions, divestitures of facilities, assets or businesses, sale by the Company of a Subsidiary, or plant closing, and you are not eligible for Retirement, your exercisable Options will not be
immediately terminated but will continue to be exercisable in accordance with their terms for six months following your last day of employment with the Company or a Subsidiary, and shall terminate at the end of such six month period. If you
voluntarily terminate your employment with the Company or a Subsidiary on or after 1 December 2014, other than a Retirement, your exercisable Options will not be immediately terminated but will continue to be exercisable in accordance with
their terms for ninety days following your last day of employment with the Company or a Subsidiary, and shall terminate at the end of such ninety day period. 

 

	5.	In the event of a Change in Control, the Options shall become exercisable on the later of the Change in Control or 2 June 2014. In the event of any other change in
the outstanding shares of the Common Stock of the Company or the occurrence of certain other events described in Section 12 of the Plan, an equitable adjustment shall be made in the number or kind of Shares or the Grant Price for Shares covered
by your Options. 

	6.	Options are nonassignable and nontransferable except to your Designated Beneficiary or by gift to family members or to trusts of which only family members are
beneficiaries. Such transfers by gift can be made only after the Option has become exercisable and subject to such administrative procedures and to such restrictions and conditions as the officers of the Company shall determine to be consistent with
the purposes of the Plan and the interests of the Company and/or to be necessary or appropriate for compliance with all applicable tax and other legal requirements. Subject to the foregoing, you may transfer Options by gift only by delivering to the
Company at its principal offices in Allentown, Pennsylvania, written notice of the intent to transfer the Options on forms to be provided by the Company. 

  

	7.	In accepting the Options, you agree that, as long as you are actively employed by the Company or one of its Subsidiaries, you will retain, for at least one year,
beneficial ownership of 50% of the net Shares (after payment of the exercise price, taxes, and commissions) that you receive upon an exercise of the Option. 

 

	8.	The Restricted Shares shall be issued to you as of 2 December 2013. Upon issuance of the Restricted Shares, you will be the holder of record of such shares and
shall have all the rights of a shareholder with respect to the Restricted Shares, including the right to vote such Restricted Shares and receive all dividends or other distributions paid with respect to the Restricted Shares, subject to the
restrictions contained in Paragraph 9 below. In the event of any change in the outstanding shares of Common Stock of the Company or the occurrence of certain other events described in Section 12 of the Plan, an equitable adjustment of the
number of Restricted Shares covered by this Agreement shall be made consistent with the impact of such change or event upon the rights of the Company’s other shareholders, and any additional Shares of Common Stock issued to you as a result of
such adjustment shall be Restricted Shares subject to this Agreement, including, without limitation, the restrictions contained in Paragraph 9. 

  

	9.	 The “Restriction Period” with respect to the Restricted Shares shall be the period beginning 2 December 2013 and ending on the earliest
of 2 December 2017; your death, Disability, or Retirement on or after 1 December 2014, or a Change in Control of the Company. During the Restriction Period, neither the Restricted Shares nor any interest in the Restricted Shares may be
sold, assigned, transferred, encumbered, or otherwise disposed of by you; provided however, that such Restricted Shares may be used to pay the exercise price by attestation upon your exercise of Stock Options, with the stipulation that the
Restricted Shares attested will remain 

	 	
subject to the restrictions of this Paragraph 9 and the terms of this Agreement. If your employment by the Company and all its Subsidiaries is terminated for any reason prior to
1 December 2014, or for any reason other than death, Disability, or Retirement after 1 December 2014 but prior to 1 December 2017, the Restricted Shares shall be forfeited in their entirety; provided that, in the event of a Change in
Control of the Company, your rights to the Restricted Shares shall become immediately transferable and nonforfeitable. At the end of the Restriction Period, all nonforfeited Restricted Shares shall become transferable and otherwise be regular
Shares. 

  

	10.	At the end of the Restriction Period, and, if earlier, upon your election to include the value of the Restricted Shares in your federal taxable income pursuant to
Internal Revenue Code Section 83(b), payment of taxes required to be withheld by the Company must be made. When taxation occurs at the end of the Restriction Period, applicable taxes will be withheld by reducing the number of the Restricted
Shares issued to you without restriction by an amount equal in market value to the taxes required to be withheld. In the event you make a Section 83(b) election, applicable taxes must be paid in cash to the Company at the time the election is
filed with the Internal Revenue Service. 

  

	11.	In the event your employment is terminated due to your death on or after 1 December 2014, the Restricted Shares shall be transferred free of restriction, reduced
by any applicable taxes, to your Designated Beneficiary or, if none, to your legal representative as soon as administratively practical after your death. 

  

	12.	The Performance Shares granted to you will be earned in accordance with the formula indicated on the Earn Out Schedule (Attachment) corresponding to the level of
average Earnings Per Share Growth and spread of Return on Capital Employed over the Company’s cost of capital achieved for the three fiscal year performance period beginning 1 October 2013 and ending 30 September 2016 (the
“Performance Period”). Subject to the forfeiture conditions contained in Paragraph 13 and to Paragraph 19, each earned Performance Share will entitle you to receive, at the end of the Deferral Period (as defined below), one Share.

  

	13.	 The Deferral Period will begin on the date of this Agreement and will end on 1 December 2016. If your employment by the Company and all its
affiliates is terminated for any reason prior to 1 December 2014, all your Performance Shares will be automatically forfeited in their entirety. If your employment by the

	 	
Company and all its affiliates terminates on or after 1 December 2014, but during the Deferral Period, other than due to death, Disability, or Retirement, you will forfeit all of your
Performance Shares. If your employment by the Company and all its affiliates is terminated on or after 1 December 2014, but during the Deferral Period, due to death, Disability, or Retirement, you will not forfeit a pro-rata portion of your
earned Performance Shares which portion in each case shall be based on the number of full months you worked during the Performance Period. 

  

	14.	Performance Shares earned and not forfeited shall be paid in Shares, reduced by the number of Shares equal in market value to any taxes required to be withheld by the
Company, as soon as administratively practical after the end of the Deferral Period. No cash dividends or other amounts shall be payable with respect to the Performance Shares during the Deferral Period. At the end of the Deferral Period, for each
earned and nonforfeited Performance Share, the Company will also pay to you a cash payment equal to the dividends which would have been paid on a Share during the Deferral Period (“Dividend Equivalents”), net of taxes required to be
withheld by the Company. 

  

	15.	If your employment by the Company or a Subsidiary terminates during the Deferral Period due to death, payment in respect of earned Performance Shares that are not
forfeited and of related Dividend Equivalents shall be made, as soon as practical after the Deferral Period, to your Designated Beneficiary or, if none, your legal representative, net of taxes required to be withheld by the Company.

  

	16.	In the event of any change in the outstanding Shares of Common Stock of the Company or the occurrence of certain other events as described in Section 12 of the
Plan, an equitable adjustment of the number of Performance Shares covered by this Agreement shall be made as provided in the Plan. 

  

	17.	Notwithstanding anything to the contrary above, if your employment by the Company and its affiliates is terminated and such termination constitutes a “Termination
of Employment” within the meaning of the Air Products and Chemicals, Inc. Corporate Executive Committee Separation Program (the “Program”) and the Administrator of the Program determines you are entitled to the benefits of the
Program, your outstanding Awards under this Agreement shall be treated in accordance with the Program. 

	18.    (a)	Notwithstanding anything to the contrary above, any Performance Shares earned or paid and any related Dividend Equivalents paid to you may be rescinded within three
years of their payment in the event: the earning of such Performance Shares is predicated upon the achievement of financial results that are subsequently the subject of a restatement; the Committee determines in its sole discretion that you engaged
in misconduct that caused or partially caused the need for the restatement; and the Performance Shares would not have been earned or a lesser amount of Performance Shares would have been earned based upon the restated financial results. In the event
of any such rescission, you shall pay to the Company the amount of any gain realized or payment received as a result of any rescinded payment, in such manner and on such terms as may be required, and the Company shall be entitled to reduce the
amount of any amount owed to you by the Company or any Subsidiary by such gain or payment. 

  

	 	(b)	Notwithstanding any other provisions of this Agreement, in the event the Company is required to prepare an accounting restatement due to its material noncompliance with
any financial reporting requirement, the Company may recover from you any amounts or awards which it is required to recover under Section 10D of the Securities Exchange Act of 1934 or any other applicable law or securities exchange listing
standard. 

  

	19.	In the event the Company determines, in its sole discretion, that you have engaged in a “Prohibited Activity” (as defined below), at any time during your
employment, or within one year after termination of your employment from the Company or any Subsidiary, the Company may forfeit, cancel, modify, rescind, suspend, withhold, or otherwise limit or restrict any unexpired, unpaid, unexercised, or
deferred Awards outstanding under this Agreement, and any exercise, payment, or delivery of an Award or Shares pursuant to such an Award may be rescinded within six months after such exercise, payment, or delivery. In the event of any such
rescission, you shall pay to the Company the amount of any gain realized or payment received as a result of the rescinded exercise, payment, or delivery, in such manner and on such terms as may be required by the Company, and the Company shall be
entitled to reduce the amount of any amount owed to you by the Company or any Subsidiary by such gain or payment. 

The Prohibited Activities are: 
  

	 	(a)	Your making any statement, written or verbal, in any forum or media, or taking any action in disparagement of the Company or any Subsidiary or affiliate thereof
(hereinafter, the “Company”), including but not limited to negative references to the Company or its products, services, corporate policies, current or former officers or employees, customers, suppliers, or business partners or associates;

	 	(b)	Your publishing any opinion, fact, or material, delivering any lecture or address, participating in any film, radio broadcast, television transmission, internet
posting, social media, and/or any other electronic media;, or communicating with any representative of the media relating to, confidential matters regarding the business or affairs of the Company; 

 

	 	(c)	Your failure to hold in confidence all Trade Secrets of the Company that came into your knowledge during your employment by the Company, or disclosing, publishing, or
making use of at any time such Trade Secrets, where the term “Trade Secret” means any technical or nontechnical data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan,
product plan, list of actual or potential customers or suppliers, or other information similar to any of the foregoing, which (i) derives economic value, actual or potential, from not being generally known to and not being readily ascertainable
by proper means by, other persons who can derive economic value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; 

 

	 	(d)	Your failure to hold in confidence all Confidential Information of the Company that came into your knowledge during your employment by the Company, or disclosing,
publishing, or making use of such Confidential Information, where the term “Confidential Information” means any data or information, other than Trade Secrets, that is valuable to the Company and not generally known to the public or to
competitors of the Company; 

  

	 	(e)	Your failure, in the event of your termination of employment for any reason, promptly to deliver to the Company all memoranda, notes, records, manuals, or other
documents, including all electronic or other copies of such materials and all documentation prepared or produced in connection therewith, containing Trade Secrets or Confidential Information regarding the Company’s business, whether made or
compiled by you or furnished to you by virtue of your employment with the Company; or your failure promptly to deliver to the Company all vehicles, computers, credit cards, telephones, handheld electronic devices, office equipment, and other
property furnished to you by virtue of your employment with the Company; 

  

	 	(f)	 Your rendering of services for any organization as an employee, officer, director, consultant, advisor, agent, broker, independent contractor,
principal, or partner, or engaging directly or indirectly in any business which, in the sole judgment of the Company, is or becomes competitive with the Company during the one (1) year period following the termination of your employment; or
directly or 

	 	
indirectly soliciting any customer, supplier, contractor, employee, agent, or consultant of the Company with whom you had contact during the last two years of your employment with the Company or
became aware of through your employment with the Company, to cease doing business with, or to terminate their employment or business relationship with, the Company; or 

 

	 	(g)	Your violation of any written policies of the Company applicable to you, including, without limitation, the Company’s insider trading policy.

 The provisions of this Paragraph 19 are in addition to, and shall not supersede, the terms of your Employee
Patent and Confidential Information Agreement entered at the time you were employed by the Company. 
 You expressly acknowledge
and affirm that the foregoing provisions of this Paragraph 19 are material and important terms of this Agreement and that your agreement to be bound by the terms of this Paragraph 19 is a condition precedent to your FY2014 Awards.

  

	20.	All determinations regarding the interpretation, construction, enforcement, waiver, or modification of this Agreement and/or the Plan shall be made in the
Company’s sole discretion or, in the case of Executive Officer Awards, by the Committee in its sole discretion and shall be final and binding on you and the Company. Determinations made under this Agreement and the Plan need not be uniform and
may be made selectively among individuals, whether or not such individuals are similarly situated. 

  

	21.	If any of the terms of this Agreement in the opinion of the Company conflict or are inconsistent with any applicable law or regulation of any governmental agency having
jurisdiction, the Company reserves the right to modify this Agreement to be consistent with applicable laws or regulations. 

  

	22.	 You understand and acknowledge that the Company holds certain personal information about you, including but not limited to your name, home address,
telephone number, date of birth, social security number, salary, nationality, job title, and details of all Shares awarded, cancelled, vested, unvested, or outstanding (the “personal data”). Certain personal data may also constitute
“sensitive personal data” within the meaning of applicable local law. Such data include but are not limited to the information provided above and any changes thereto and other appropriate personal and financial data about you. You hereby
provide explicit consent to the Company and any Subsidiary to process any such personal data and 

	 	
sensitive personal data. You also hereby provide explicit consent to the Company and any Subsidiary to transfer any such personal data and sensitive personal data outside the country in which you
are employed, and to the United States. The legal persons for whom such personal data are intended are the Company and any third party providing services to the Company in connection with the administration of the Plan. 

 

	23.	By accepting this award, you acknowledge having received and read the Plan Prospectus, and you consent to receiving information and materials in connection with this
Award or any subsequent awards under the Company’s long-term performance plans, including without limitation any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without
limitation by e-mail, by Website access, and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you. This Agreement and the Plan, which is incorporated herein by reference, constitute the entire agreement
between you and the Company regarding the terms and conditions of this Award. 

  

	24.	You submit to the exclusive jurisdiction and venue of the federal or state courts of the Commonwealth of Pennsylvania to resolve all issues that may arise out of or
relate to and all determinations made under this Agreement. This Agreement shall be governed by the laws of the Commonwealth of Pennsylvania, without regard to conflicts or choice of law rules or principles. 

 

	25.	If any court of competent jurisdiction finds any provision of this Agreement, or portion thereof, to be unenforceable, that provision shall be enforced to the maximum
extent permissible so as to effect the intent of the parties, and the remainder of this Agreement shall continue in full force and effect. 

 Attachment 

2014 Performance Share Earn Out Schedule 
 (PERFORMANCE SHARES AWARDED) x (PAYOUT FACTOR) = 
 (PERFORMANCE SHARES EARNED)

 The Payout Factor is determined as follows: 
  

									
	 33%
 EPS Growth
 Factor
	  	+	  	 67%
 ROCE Spread
 Factor
	  	=	  	 Payout
 Factor*

  

	*	The Payout Factor will be increased by 15 percentage points to determine the maximum payout. The Committee, in its discretion, may decrease the actual Payout Factor by
up to 30 percentage points from the maximum payout (15 percentage points from the calculated Payout Factor). 

 The EPS Growth and
ROCE Spread Factors are determined from the following schedules: 

 

  

			
	 EPS
Growth(1)
	  	EPS
Growth 
Factor
	 -10%
	  	    0%
	    0%
	  	  35%
	    4%
	  	  50%
	    7%
	  	  80%
	    9%
	  	100%
	  10%
	  	120%
	  11%
	  	130%
	  13%
	  	160%
	  15%
	  	180%
	  16%
	  	200%

			
	 ROCE Spread

(ROCE over
 Cost of Capital)
	  	ROCE
Spread
Factor(2)
	  <0%	  	    0%
	    0%	  	  50%
	+2.5%	  	100%
	+4.5%	  	200%

 
 

  

	(1) 	 EPS growth is the average of annual growth in earnings per share over the prior year for each of fiscal years 2014, 2015, and 2016.

	(2) 	 ROCE spread is the average of the difference between the Company’s Return on Capital Employed and cost of capital for each of fiscal years 2014,
2015, and 2016.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]