Document:

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
      WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
      AMENDED,  OR ANY STATE  SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK
      ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,  OFFERED FOR SALE,
      PLEDGED  OR  HYPOTHECATED  IN THE  ABSENCE  OF AN  EFFECTIVE  REGISTRATION
      STATEMENT  AS TO THIS  WARRANT  UNDER  SAID ACT AND ANY  APPLICABLE  STATE
      SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY  SATISFACTORY TO INYX,
      INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

            Right to Purchase up to 300,000 Shares of Common Stock of

                                   INYX, Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _______________                               Issue Date:  February 28, 2005

      INYX, INC., a corporation organized under the laws of the State of Nevada,
hereby certifies that, for value received,  LAURUS MASTER FUND, LTD., or assigns
(the "Holder"),  is entitled,  subject to the terms set forth below, to purchase
from the  Company  (as  defined  herein)  from and after the Issue  Date of this
Warrant and at any time or from time to time  before  5:00 p.m.,  New York time,
through the close of business  February 28, 2010 (the "Expiration  Date"), up to
300,000  fully paid and  nonassessable  shares of Common  Stock (as  hereinafter
defined), $0.001 par value per share, at the applicable Exercise Price per share
(as defined below).  The number and character of such shares of Common Stock and
the  applicable  Exercise  Price per share are subject to adjustment as provided
herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

            (a) The term "Company"  shall include INYX, Inc. and any corporation
      which shall succeed, or assume the obligations of, INYX, Inc. hereunder.

            (b) The term "Common Stock" includes (i) the Company's Common Stock,
      par value 0.001 per share; and (ii) any other securities into which or for
      which any of the securities described in (a) may be converted or exchanged
      pursuant to a plan of  recapitalization,  reorganization,  merger, sale of
      assets or otherwise.

            (c) The term  "Other  Securities"  refers to any stock  (other  than
      Common  Stock) and other  securities  of the  Company or any other  person
      (corporate or otherwise) which the holder of the Warrant at any time shall
      be entitled to receive,  or shall have  received,  on the  exercise of the
      Warrant,  in lieu of or in addition to Common Stock,  or which at any time
      shall  be  issuable  or shall  have  been  issued  in  exchange  for or in
      replacement of Common Stock or Other  Securities  pursuant to Section 4 or
      otherwise.
<PAGE>

            (d) The "Exercise Price" applicable under this Warrant shall $0.95

1.    Exercise of Warrant.

      1.1  Number  of Shares  Issuable  upon  Exercise.  From and after the date
hereof through and including the  Expiration  Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery of an
original  or fax copy of an  exercise  notice  in the form  attached  hereto  as
Exhibit  A (the  "Exercise  Notice"),  shares of  Common  Stock of the  Company,
subject to adjustment pursuant to Section 4.

      1.2 Fair Market Value. For purposes  hereof,  the "Fair Market Value" of a
share of Common Stock as of a particular date (the  "Determination  Date") shall
mean:

            (a) If the  Company's  Common Stock is traded on the American  Stock
      Exchange  or another  national  exchange  or is quoted on the  National or
      SmallCap  Market of The Nasdaq Stock  Market,  Inc.  ("Nasdaq"),  then the
      closing or last sale price,  respectively,  reported for the last business
      day immediately preceding the Determination Date.

            (b) If the  Company's  Common  Stock is not  traded on the  American
      Stock Exchange or another national exchange or on the Nasdaq but is traded
      on the NASD OTC  Bulletin  Board,  then  the  mean of the  average  of the
      closing  bid  and  asked  prices   reported  for  the  last  business  day
      immediately preceding the Determination Date.

            (c) Except as provided in clause (d) below, if the Company's  Common
      Stock is not publicly traded,  then as the Holder and the Company agree or
      in the absence of agreement by  arbitration  in accordance  with the rules
      then in effect of the American  Arbitration  Association,  before a single
      arbitrator to be chosen from a panel of persons qualified by education and
      training to pass on the matter to be decided.

            (d)  If  the  Determination  Date  is  the  date  of a  liquidation,
      dissolution  or  winding  up,  or any event  deemed  to be a  liquidation,
      dissolution  or winding up pursuant  to the  Company's  charter,  then all
      amounts to be payable per share to holders of the Common Stock pursuant to
      the charter in the event of such  liquidation,  dissolution or winding up,
      plus all other  amounts to be  payable  per share in respect of the Common
      Stock in liquidation under the charter,  assuming for the purposes of this
      clause  (d) that all of the  shares of Common  Stock  then  issuable  upon
      exercise of the Warrant are outstanding at the Determination Date.

      1.3 Company Acknowledgment.  The Company will, at the time of the exercise
of the Warrant, upon the request of the holder hereof acknowledge in writing its
continuing  obligation  to afford to such holder any rights to which such holder
shall  continue  to be  entitled  after such  exercise  in  accordance  with the
provisions of this  Warrant.  If the holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Company to afford
to such holder any such rights.

                                       2
<PAGE>

      1.4 Trustee for Warrant Holders. In the event that a bank or trust company
shall have been appointed as trustee for the holders of the Warrant  pursuant to
Subsection  3.2, such bank or trust company shall have all the powers and duties
of a warrant agent (as hereinafter  described) and shall accept, in its own name
for the  account of the  Company  or such  successor  person as may be  entitled
thereto, all amounts otherwise payable to the Company or such successor,  as the
case may be, on exercise of this Warrant pursuant to this Section 1.

2.    Procedure for Exercise.

      2.1 Delivery of Stock Certificates,  Etc., on Exercise. The Company agrees
that the shares of Common Stock purchased upon exercise of this Warrant shall be
deemed to be issued to the Holder as the record  owner of such  shares as of the
close of business on the date on which this Warrant shall have been  surrendered
and payment made for such shares in accordance herewith.  As soon as practicable
after the exercise of this  Warrant in full or in part,  and in any event within
three (3) business days  thereafter,  the Company at its expense  (including the
payment by it of any applicable issue taxes) will cause to be issued in the name
of and  delivered to the Holder,  or as such Holder (upon payment by such Holder
of any  applicable  transfer  taxes) may direct in  compliance  with  applicable
securities  laws,  a  certificate  or  certificates  for the  number of duly and
validly issued,  fully paid and  nonassessable  shares of Common Stock (or Other
Securities)  to which such Holder shall be entitled on such  exercise,  plus, in
lieu of any fractional  share to which such holder would  otherwise be entitled,
cash equal to such fraction multiplied by the then Fair Market Value of one full
share, together with any other stock or other securities and property (including
cash,  where  applicable)  to which such Holder is entitled  upon such  exercise
pursuant to Section 1 or otherwise.

      2.2  Exercise.  Payment may be made either (i) in cash or by  certified or
official bank check payable to the order of the Company equal to the  applicable
aggregate  Exercise Price, (ii) by delivery of the Warrant,  or shares of Common
Stock and/or Common Stock  receivable upon exercise of the Warrant in accordance
with  Section  (b)  below,  or (iii) by a  combination  of any of the  foregoing
methods,  for the number of Common Shares  specified in such Exercise Notice (as
such  exercise  number shall be adjusted to reflect any  adjustment in the total
number of shares of Common  Stock  issuable  to the Holder per the terms of this
Warrant)  and the Holder  shall  thereupon  be entitled to receive the number of
duly authorized,  validly issued, fully-paid and non-assessable shares of Common
Stock (or Other Securities)  determined as provided herein.  Notwithstanding any
provisions  herein to the  contrary,  if the Fair  Market  Value of one share of
Common Stock is greater than the Exercise  Price (at the date of  calculation as
set forth below),  in lieu of exercising  this Warrant for cash,  the Holder may
elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion  thereof  being  exercised)  by surrender of this Warrant at the
principal  office of the Company  together with the properly  endorsed  Exercise
Notice in which event the  Company  shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

                                       3
<PAGE>

         X=Y   (A-B)
                ---
                 A

         Where X =         the number of shares of Common Stock to be issued to
                           the Holder

         Y =               the number of shares of Common Stock purchasable
                           under the Warrant or, if only a portion of the
                           Warrant is being exercised, the portion of the
                           Warrant being exercised (at the date of such
                           calculation)

         A =               the Fair Market  Value of one share of the  Company's
                           Common Stock (at the date of such calculation)

         B =               Exercise Price (as adjusted to the date of such
                           calculation)

3.    Effect of Reorganization, Etc.; Adjustment of Exercise Price.

      3.1  Reorganization,  Consolidation,  Merger,  Etc. In case at any time or
from  time  to  time,  the  Company  shall  (a)  effect  a  reorganization,  (b)
consolidate  with or  merge  into  any  other  person,  or (c)  transfer  all or
substantially all of its properties or assets to any other person under any plan
or arrangement  contemplating the dissolution of the Company, then, in each such
case,  as a condition  to the  consummation  of such a  transaction,  proper and
adequate  provision  shall be made by the  Company  whereby  the  Holder of this
Warrant,  on the exercise  hereof as provided in Section 1 at any time after the
consummation of such  reorganization,  consolidation  or merger or the effective
date of such  dissolution,  as the case may be,  shall  receive,  in lieu of the
Common  Stock (or Other  Securities)  issuable  on such  exercise  prior to such
consummation or such effective date, the stock and other securities and property
(including  cash) to which  such  Holder  would  have  been  entitled  upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant,  immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

      3.2 Dissolution.  In the event of any dissolution of the Company following
the  transfer  of all or  substantially  all of its  properties  or assets,  the
Company,  concurrently  with any  distributions  made to  holders  of its Common
Stock,  shall at its expense  deliver or cause to be delivered to the Holder the
stock and other  securities  and property  (including  cash,  where  applicable)
receivable  by the Holder of the  Warrant  pursuant to Section  3.1,  or, if the
Holder shall so instruct the Company,  to a bank or trust  company  specified by
the Holder and having its  principal  office in New York,  NY as trustee for the
Holder of the Warrant.

      3.3 Continuation of Terms. Upon any reorganization,  consolidation, merger
or transfer (and any  dissolution  following  any transfer)  referred to in this
Section 3, this  Warrant  shall  continue in full force and effect and the terms
hereof  shall be  applicable  to the  shares of stock and other  securities  and
property  receivable on the exercise of this Warrant after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed  the terms of this  Warrant as  provided in Section 4. In the
event  this  Warrant  does not  continue  in full  force  and  effect  after the
consummation of the transactions described in this Section 3, then the Company's
securities and property  (including  cash, where  applicable)  receivable by the
Holders  of  the  Warrant  will  be  delivered  to  Holder  or  the  Trustee  as
contemplated by Section 3.2.

                                       4
<PAGE>

      4.  Extraordinary  Events  Regarding  Common Stock.  In the event that the
Company shall (a) issue  additional  shares of the Common Stock as a dividend or
other  distribution on outstanding  Common Stock,  (b) subdivide its outstanding
shares of Common  Stock,  or (c)  combine its  outstanding  shares of the Common
Stock into a smaller  number of shares of the Common  Stock,  then, in each such
event,  the Exercise  Price  shall,  simultaneously  with the  happening of such
event,  be adjusted by multiplying  the then Exercise  Price by a fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
product so obtained shall  thereafter be the Exercise Price then in effect.  The
Exercise Price, as so adjusted,  shall be readjusted in the same manner upon the
happening of any successive  event or events described herein in this Section 4.
The  number of shares of Common  Stock  that the  holder of this  Warrant  shall
thereafter,  on the  exercise  hereof as  provided  in Section 1, be entitled to
receive shall be increased to a number  determined by multiplying  the number of
shares of Common  Stock that would  otherwise  (but for the  provisions  of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the  Exercise  Price that would  otherwise  (but for the  provisions  of this
Section 4) be in effect, and (b) the denominator is the Exercise Price in effect
on the date of such exercise.

      5.  Certificate  as to  Adjustments.  In each  case of any  adjustment  or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the  Warrant,  the Company at its expense  will  promptly  cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with the terms of the  Warrant  and  prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based,  including  a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold,  (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding,  and (c) the Exercise Price
and the number of shares of Common  Stock to be received  upon  exercise of this
Warrant,  in effect  immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant.  The Company will  forthwith
mail a copy of each  such  certificate  to the  holder  of the  Warrant  and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

      6.  Reservation  of Stock,  Etc.,  Issuable on  Exercise  of Warrant.  The
Company will at all times  reserve and keep  available,  solely for issuance and
delivery  on the  exercise  of the  Warrant,  shares of  Common  Stock (or Other
Securities) from time to time issuable on the exercise of the Warrant.

      7. Assignment;  Exchange of Warrant. Subject to compliance with applicable
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by any  registered  holder hereof (a  "Transferor")  in whole or in
part.  On the  surrender  for exchange of this  Warrant,  with the  Transferor's
endorsement  in  the  form  of  Exhibit  B  attached  hereto  (the   "Transferor
Endorsement  Form") and together with evidence  reasonably  satisfactory  to the
Company  demonstrating  compliance with applicable  securities laws, which shall
include,  without limitation, a legal opinion from the Transferor's counsel that
such  transfer  is  exempt  from the  registration  requirements  of  applicable
securities  laws,  the Company at its expense but with payment by the Transferor
of any applicable  transfer  taxes) will issue and deliver to or on the order of
the  Transferor  thereof  a new  Warrant  of  like  tenor,  in the  name  of the
Transferor  and/or the  transferee(s)  specified in such Transferor  Endorsement
Form  (each a  "Transferee"),  calling  in the  aggregate  on the  face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.

                                       5
<PAGE>

      8. Replacement of Warrant. On receipt of evidence reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or  mutilation of this Warrant
and, in the case of any such loss,  theft or  destruction  of this  Warrant,  on
delivery of an indemnity agreement or security  reasonably  satisfactory in form
and amount to the Company or, in the case of any such  mutilation,  on surrender
and  cancellation  of this Warrant,  the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

      9.  Registration  Rights.  The  Holder of this  Warrant  has been  granted
certain  registration  rights by the Company.  These registration rights are set
forth  in a  Registration  Rights  Agreement  entered  into by the  Company  and
Purchaser dated as of even date of this Warrant.

      10.  Maximum  Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection  with that number of shares of Common
Stock  which would be in excess of the sum of (i) the number of shares of Common
Stock  beneficially  owned by the Holder and its affiliates on an exercise date,
and (ii) the number of shares of Common Stock issuable upon the exercise of this
Warrant with respect to which the determination of this proviso is being made on
an exercise date,  which would result in beneficial  ownership by the Holder and
its affiliates of more than 4.99% of the  outstanding  shares of Common Stock of
the Company on such date.  For the  purposes  of the proviso to the  immediately
preceding sentence,  beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3 thereunder.  Notwithstanding the foregoing,  the restriction  described in
this  paragraph  may be revoked upon 75 days prior notice from the Holder to the
Company and is  automatically  null and void upon an Event of Default  under the
Note.

      11. Warrant  Agent.  The Company may, by written notice to the each Holder
of the  Warrant,  appoint an agent for the purpose of issuing  Common  Stock (or
Other  Securities)  on the  exercise  of this  Warrant  pursuant  to  Section 1,
exchanging  this  Warrant  pursuant  to Section 7, and  replacing  this  Warrant
pursuant  to  Section  8,  or any of the  foregoing,  and  thereafter  any  such
issuance,  exchange or  replacement,  as the case may be,  shall be made at such
office by such agent.

      12. Transfer on the Company's Books.  Until this Warrant is transferred on
the books of the Company,  the Company may treat the registered holder hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.

      13. Notices, Etc. All notices and other communications from the Company to
the  Holder  of this  Warrant  shall be  mailed  by first  class  registered  or
certified mail,  postage prepaid,  at such address as may have been furnished to
the Company in writing by such Holder or, until any such Holder furnishes to the
Company an  address,  then to, and at the  address  of, the last  Holder of this
Warrant who has so furnished an address to the Company.

                                       6
<PAGE>

      14.  Voluntary  Adjustment  by the  Company.  The  Company may at any time
during the term of this Warrant  reduce the then current  Exercise  Price to any
amount and for any period of time deemed  appropriate  by the Board of Directors
of the Company.

      15. No Shorting.  The Purchaser or any of its  affiliates  and  investment
partners  will not and  will  not  cause  any  person  or  entity,  directly  or
indirectly,  to engage in "short  sales" of the  Company's  Common  Stock or any
other hedging strategies.

      16.  Miscellaneous.  This  Warrant  and any term  hereof  may be  changed,
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought.  This Warrant shall be governed by and  construed in accordance  with
the laws of State of New York without regard to principles of conflicts of laws.
Any action brought  concerning  the  transactions  contemplated  by this Warrant
shall be brought only in the state  courts of New York or in the federal  courts
located in the state of New York; provided,  however, that the Holder may choose
to waive this  provision and bring an action  outside the state of New York. The
individuals  executing  this Warrant on behalf of the Company agree to submit to
the  jurisdiction  of such courts and waive trial by jury. The prevailing  party
shall be entitled to recover from the other party its reasonable attorney's fees
and  costs.  In the event  that any  provision  of this  Warrant  is  invalid or
unenforceable  under any applicable  statute or rule of law, then such provision
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed  modified to conform  with such statute or rule of law. Any such
provision  which  may prove  invalid  or  unenforceable  under any law shall not
affect the validity or  enforceability  of any other  provision of this Warrant.
The headings in this Warrant are for purposes of reference  only,  and shall not
limit  or  otherwise  affect  any  of  the  terms  hereof.   The  invalidity  or
unenforceability  of any provision hereof shall in no way affect the validity or
enforceability  of any other  provision.  The  Company  acknowledges  that legal
counsel  participated  in  the  preparation  of  this  Warrant  and,  therefore,
stipulates  that the rule of  construction  that  ambiguities are to be resolved
against the drafting  party shall not be applied in the  interpretation  of this
Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE FOLLOWS.]

                                       7
<PAGE>

         IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above.

                                             INYX, INC.

WITNESS:
                                             By:    /s/ Rima Goldshmidt
                                                    --------------------------
                                             Name:  Rima Goldshmidt
                                                    --------------------------
                                             Title: Vise President of Finance
--------------------                                --------------------------

                                       8
<PAGE>

                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:      INYX, Inc.

      Attention: Chief Financial Officer

      The  undersigned,  pursuant to the  provisions  set forth in the  attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

                     shares of the Common Stock covered by such Warrant; or
------------   -----

               the maximum number of shares of Common Stock covered by such
------------   Warrant pursuant to the cashless exercise procedure set forth
               in Section 2.

      The undersigned herewith makes payment of the full Exercise Price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$___________. Such payment takes the form of (check applicable box or boxes):

                  $__________ in lawful money of the United States; and/or
------------

               the cancellation of such portion of the attached Warrant as is
------------   exercisable for a total of _______ shares of Common Stock
               (using a Fair Market Value of $_______ per share for purposes
               of this calculation); and/or

               the cancellation of such number of shares of Common Stock as
------------   is necessary, in accordance with the formula set forth in
               Section 2.2, to exercise this Warrant with respect to the
               maximum number of shares of Common Stock purchasable pursuant
               to the cashless exercise procedure set forth in Section 2.

      The undersigned  requests that the  certificates for such shares be issued
in  the  name  of,  and  delivered  to   __________________   whose  address  is
_______________________________.

      The  undersigned  represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act") or  pursuant  to an  exemption  from
registration under the Securities Act.

Dated:
       ------------------              -----------------------------------------
                                       (Signature must conform to name of holder
                                       as specified on the face of the Warrant)

                                       Address:
                                               ---------------------------------

                                               ---------------------------------

                                       A-1
<PAGE>

                                    EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

      For value received,  the undersigned hereby sells,  assigns, and transfers
unto the  person(s)  named  below  under  the  heading  "Transferees"  the right
represented  by the within  Warrant to  purchase  the  percentage  and number of
shares of Common  Stock of INYX,  Inc.  into  which the within  Warrant  relates
specified under the headings "Percentage  Transferred" and "Number Transferred,"
respectively,  opposite the name(s) of such  person(s)  and  appoints  each such
person Attorney to transfer its respective right on the books of INYX, Inc. with
full power of substitution in the premises.

                                               Percentage         Number
Transferees                Address             Transferred      Transferred

-----------------------    ----------------    -------------    ----------------

-----------------------    ----------------    -------------    ----------------

-----------------------    ----------------    -------------    ----------------

-----------------------    ----------------    -------------    ----------------

Dated:
      -------------------              -----------------------------------------
                                       (Signature must conform to name of holder
                                       as specified on the face of the Warrant)

                                       Address:
                                               ---------------------------------

                                               ---------------------------------

                                               SIGNED IN THE PRESENCE OF:

                                               ---------------------------------
                                                           (Name)
ACCEPTED AND AGREED:
[TRANSFEREE]

-----------------------------
          (Name)

                                      B-1Exhibit 10.37

RAYONIER 

ANNUAL CORPORATE BONUS PROGRAM 

Rayonier

Annual Corporate Bonus
Program

	 	 	 	 
	1.		Purpose	 

This Rayonier Annual Corporate Bonus Program (“Bonus Program”) is
the vehicle through which the Compensation and Management Development Committee (the “Committee”) of
the Rayonier Board of Directors will make awards to key personnel that have an impact on the Company’s
achievement of annual or other short-term Performance Objectives.  The Committee intends that Awards under the
Bonus Program constitute (a) the Performance Bonus Awards provided for in Section 9 (Management Performance Bonus
Awards) of the 2004 Incentive Stock and Management Bonus Plan (the “Plan") to the Covered Executives
eligible therefore designated by the Committee and (b) replace the incentive bonus awards available to other
Executives and Key Employees designated from time to time by the Committee under the former 2004 Rayonier Annual
Corporate Incentive Bonus Plan.

The Bonus Program is effective for fiscal years beginning January 1, 2005
until such time as modified or terminated by the Committee.

	 	 	 	 
	2.		Definitions	 

For purposes of the Bonus Program, the following terms
have the indicated definitions.  (Terms not defined here have the same meaning as under the Plan.)

	 	 	 	 
	 	(a)	 	“Available Bonus Pool” means with respect to any Performance Period, the sum of (i) the Preliminary
Bonus Awards for all Executives and (ii) the Special Key Employee Bonus Pool; provided that, such sum
shall not exceed the amount specified in Section 4(a). 

	 	 	 	 
	 	(b)	 	“Bonus Award” means the bonus payable in respect of a specified Performance Period to a Designated
Employee determined in accordance with Section 4, and which in the case of a Covered Executive is such
individual’s “Bonus Award” for purposes of Section 9 of the Plan.

	 	 	 	 
	 	(c)	 	“Bonus Program” means this Rayonier Annual Corporate Bonus Program, as it may be modified from time
to time by the Committee.

	 	 	 	 
	 	(d)	 	“Budgeted Net Income” means the Net Income budget as approved by the Board for the applicable
Performance Period.

	 	 	 	 
	 	(e)	 	“Corporate Performance Factor” or “CPF” has the meaning set forth in Section 5.

	 	 	 	 
	 	(f)	 	“Covered Executive” has the same meaning as a “Participant” under Section 9 of the Plan
and includes any officer of the Company for whom compensation is required to be reported in the Company’s
proxy statement pursuant to Item 402 of Regulation S-K of the Securities Exchange Act of 1934 and whose
compensation is subject to Section 162(m) of the Internal Revenue Code of 1986, as amended.

	 	 	 	 
	 	(g)	 	“Designated Employees” means with respect to any applicable Performance Period, the Covered
Executives and other Executives designated, by Salary Grade or otherwise, by

1

	 	 	 	 
	 	 	 	the Committee prior to the end of the first quarter of
the Performance Period, and the Key Employees selected to participate in the Key Employee Bonus Pool at the end
of the Performance Period.

	 	 	 	 
	 	(h)	 	“Executive” means any Rayonier employee at Salary Grade 19 or higher, including the Covered
Executives.

	 	 	 	 
	 	(i)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.

	 	 	 	 
	 	(j)	 	“Key Employee” means those employees in Salary Grades 15 to 18 identified by senior management as
eligible to participate in the Special Key Employee Bonus Pool for a particular Performance Period.

	 	 	 	 
	 	(k)	 	 “Net Income” means, for each Performance Period, the Company’s net income from continuing
operations as defined by accounting principles generally accepted in the United States, as reported in the
Company’s income statements for the Performance Period, adjusted to eliminate the after-tax effects of any
restructuring charges or other unusual items, all as determined by the Company and reported to the Committee.

	 	 	 	 
	 	(l)	 	“Preliminary Bonus Award” means the product of multiplying (i) an Executive’s Target Award for
the Performance Period (applying such Executive’s base salary at the end of the Performance Period) times
(ii) the actual CPF in respect of that Performance Period.

	 	 	 	 
	 	(m)	 	“Performance Period” means the Company’s fiscal year or any other period designated by the
Committee with respect to which Bonus Awards are granted.

	 	 	 	 
	 	(n)	 	“Performance Bonus Award” has the meaning set forth in the Plan and is the Bonus Award determined
in accordance with this Bonus Program and the Plan in the case of a Covered Executive.

	 	 	 	 
	 	(o)	 	“Plan” means the Rayonier 2004 Incentive Stock and Management Bonus Plan, pursuant to which this
Bonus Program as it applies to Covered Executives is adopted, or any successor thereto.

	 	 	 	 
	 	(p)	 	“Special Key Employee Bonus Pool” in respect of any Performance Period means an amount equal to 10%
of the sum of the Target Bonus Awards for all Executives for such Performance Period, multiplied by the CPF for
such Performance Period.

	 	 	 	 
	 	(q)	 	“Target Award” means with respect to an Executive, the amount that would become such
Executive’s Preliminary Bonus Award if the CPF in respect of the applicable Performance Period is 100%,
expressed as a percentage of the Executive’s Performance Period end base salary.

	 	 	 	 
	3.	 	Administration	 

The Committee shall administer the Bonus Program for
all Designated Employees, including in accordance with the Plan, with respect to Covered Executives.

Before payment of any Bonus Award is made under this
Bonus Program, the Committee shall have complied with the provisions of Section 4.

2

	 	 	 	 
	4.	 	Procedures for Establishing and Determining Bonus Awards	 

	 	 	 	 
	 	(a)	 	Maximum Bonus Awards for a Performance Period. The aggregate amount payable as Bonus Awards for
any Performance Period for all Designated Employees shall not exceed 165% of the sum of the Target Bonus Awards
for all Executives.

	 	 	 	 
	 	(b)	 	Setting Performance Goals, Performance Objectives and Target Awards.  Not later than the end of the
first quarter of each Performance Period (or by such earlier time as may be required in the future by the
applicable provisions of the Internal Revenue Code of 1986, as amended, in the case of Covered Executives), the
Committee shall: 

	 	 	 	 	 	 
	 	 	 	(i)	 	Determine the class of Executives who will participate in the Bonus Program for the particular Performance
Period;

	 	 	 	 	 	 
	 	 	 	(ii)	 	Determine the parameters of the Corporate Performance Factor to be applied for the Performance Period in
accordance with Section 5(a), and

	 	 	 	 	 	 
	 	 	 	(iii)	 	Establish the parameters for the Target Award for the Performance Period for the class of Executives covered
by the Bonus Program, including for each Covered Executive, as set forth on Exhibit A hereto by Salary Grade.

	 	 	 	 
	 	(c)	 	Certify CPF and Finalize Bonus Awards.  At the end of each Performance Period, the Committee
shall:

	 	 	 	 	 	 
	 	 	 	(i)	 	Review the calculation of the Available Bonus Pool and the Preliminary Bonus Award for Executives covered by
the Bonus Program, with specific review of the Preliminary Bonus Awards for the Covered Executives, including the
Chief Executive Officer, and for such other Executives identified by the Committee, which may include the direct
reports to the Chief Executive Officer whether or not they are Covered Executives;

	 	 	 	 	 	 
	 	 	 	(ii)	 	Make such adjustments, under Section 5(c) or otherwise, to the Preliminary Bonus Award for any Executive that
the Committee, in its discretion, deems appropriate in establishing the final amount, if any, of the Bonus Award
for such Executive; provided that, the Preliminary Bonus Award for any Covered Executive may not be
increased or exceed 200% of the Covered Executive’s base salary in effect at the end of the Performance
Period, and following all such adjustments, the sum of all Bonus Awards payable in respect of the Performance
Period shall not exceed the amount determined in accordance with Section 4(a), 

	 	 	 	 	 	 
	 	 	 	(iii)	 	Confirm the amount of the Special Key Employee Bonus Pool and authorize payment thereof to the Key Employees
designated for such Performance Period; 

	 	 	 	 	 	 
	 	 	 	(iv)	 	Establish the form of payment and the payment date for Bonus Awards for the Performance Period for Covered
Executives as provided in Section 6; and

	 	 	 	 	 	 
	 	 	 	(v)	 	Prior to the payment of a Bonus Award to any Covered Executive, certify in writing, in accordance with the
requirements of Section 162(m) of the Code and Section 9(e) of the Plan, whether the Corporate Performance Factor
and other material terms for paying such Bonus Award in respect of the Performance Period have been achieved or
met.

It is anticipated that for Designated Employees other
than Covered Executives, if authorized by the Committee, payments of Bonus Awards can be based on preliminary
data available in the last month of the Performance Period and made shortly after the end of the Performance
Period, subject to confirmation following the close of the Performance Period.

3

	 		 	
	5.	Corporate Performance Factor
	 		 	
	 	(a)	 	Criteria for Establishing the CPF.  The “Corporate Performance Factor” shall consist of
those Performance Goals permitted under Section 9 of the Plan that are selected by the Committee for the
specified Performance Period, and weighted as designated by the Committee for such Performance Period so as to
reflect Performance Objectives under the Plan.  Such selection and weighting in determining the Corporate
Performance Factor may be changed from time to time by the Committee consistent with the provisions of Section 9
of the Plan in respect of Covered Executives, provided that with respect to a particular Performance
Period, the Corporate Performance Factor shall be established generally prior to the commencement of such
Performance Period and in all events not later than the end of the first quarter of any Performance Period.  

	 	 	 	 
	 	(b)	 	Initial CPF Performance Goals and Parameters.  The Corporate Performance Factor for Bonus Awards for
the 2005 Performance Period, and for subsequent Performance Periods until changed by the Committee as provided in
Section 5(a), shall be computed as specified in Exhibit B hereto, with such adjustments to reported earnings for
accounting rule changes, special non-recurring items, discontinued operations, and similar adjustments as are
approved by the Committee made so as to provide consistent measurements of continuing corporate performance.

	 	 	 	 
	 	(c)	 	Post-Performance Period Adjustments to CPF for Executives Other Than Covered Executives.  The
Corporate Performance Factor with respect to Bonus Awards for any particular Performance Period may be adjusted
for Executives who are not Covered Executives, plus or minus 20 percent based upon a qualitative judgment of the
Committee as to the effectiveness of the Executives in non-financial areas. 

	 	 	 	 
	6.	Payment of Bonus Awards
	 	 	 	 
	 	(a)	 	Entitlement to Payments Generally.  Subject to Sections 4(c)(iv) and (v) for Covered Executives, Bonus
Awards for a Performance Period shall be paid at such time as designated by the Committee following the closing
of the Performance Period and its determination of the final Bonus Awards as provided in Section 4(c)(ii) and
(iii), to Designated Employees who are employed by the Company on the payment date or whose employment terminated
as a result of death, disability or normal retirement following the end of the applicable Performance Period.
Except as provided in the previous sentence, the Committee shall determine in its sole discretion if a Bonus
Award shall be paid to any Designated Employee who is not employed by the Company on the payment date.  

	 	 	 	 
	 	(b)	 	Employment After Commencing of a Performance Period.  Subject to such modifications as may be approved
by the Committee, Executives who commence employment after the start of a Performance Period but prior to the end
of the first half thereof, may be granted a Bonus Award determined pro-rata for the term of such employee’s
employment during the Performance Period.  (To the extent a new Executive may become entitled to a Bonus Award
hereunder, a Target Bonus Award shall be computed for such Executive to reflect such pro-rata participation and
the Available Bonus Pool and Special Key Employee Bonus Pool shall be adjusted to reflect such Target Bonus.)

	 	 	 	 
	 	(c)	 	Form of Payment.  Bonus Awards shall be paid in cash, except that Bonus Awards that are Performance
Bonus Awards for Covered Executives may be paid in cash, stock, other stock-based or stock-denominated units or
any combination thereof as determined by the Committee.  Stock or stock-based awards may be granted under the
terms and conditions

4

	 	 	 	 
	 	 	 	of the Plan applicable to stock awards under the Plan
and in compliance with the applicable rules of the Exchange Act.

	 	 	 	 
	7.	Termination and Amendment

Subject to the provisions of the Plan, the Committee may terminate or amend the Bonus Program at any time.

	 	 	 	 
	8.	Other Provisions
	 	 	 	 
	 	(a)	 	No Designated Employee shall have any claim or right to be granted a Bonus Award under the Bonus Program
until such Bonus Award is actually made.  Neither the existence of this Bonus Program, nor any action taken
hereunder, shall be construed as giving any Designated Employee any right to be retained in the employ of the
Company or in any way interfere with or limit the right of the Company to terminate any Designated
Employee’s employment at any time.  Nothing contained in this Bonus Program shall limit the ability of the
Company to make payments or awards to Designated Employees under any other plan, agreement or arrangement in
effect at time the Bonus Program is established or upon a subsequent date. 

	 	 	 	 
	 	(b)	 	No employee shall, at any time, have a right to become a Designated Employee in the Bonus Program for any
Performance Period, for any reason, including notwithstanding the individual’s having previously
participated in the Bonus Program.

	 	 	 	 
	 	(c)	 	The Company shall have the right to deduct from a Bonus Award or from any other amounts due the Designated
Employee from the Company, any taxes or other amounts required or permitted to be withheld by law.

	 	 	 	 
	 	(d)	 	No Designated Employee or any other party claiming an interest in amounts earned under the Bonus Program
shall have any interest whatsoever in any specific asset of the Company.  To the extent that any person or entity
acquires a right to receive payments under the Bonus Program, such rights shall be that of an unsecured general
creditor of the Company.

	 	 	 	 
	 	(e)	 	All questions pertaining to the construction, regulation, validity and effect of the provisions of the Bonus
Program shall be determined in the sole discretion of the Committee pursuant to the Plan.

	 	 	 	 
	 	(f)	 	With the exception of payments made following the death of a Designated Employee, the rights and benefits of
a Designated Employee hereunder are personal to the Designated Employee and shall not be subject to any voluntary
or involuntary alienation, assignment, pledge, transfer, encumbrance, attachment, garnishment or other
disposition.

	 	 	 	 
	 	(g)	 	Bonus Awards under this Bonus Program shall not constitute compensation for the purpose of determining
participation or benefits under any other plan of the Company unless specifically included as compensation in
such plan.

	 	 	 	 
	 	(h)	 	If any provision of this Bonus Program would cause a Performance Bonus Award not to constitute
“qualified performance-based compensation” under Section 162(m) with respect to a Covered Executive,
that provision shall be severed from, and shall be deemed not to be a part of, the Bonus Program, in respect of
such Covered Executive but the other provisions hereof shall remain in full force and effect.

5

	 	 	 	 
	 	(i)	 	In the event that changes are made to Section 162(m) to permit greater flexibility under the Bonus
Program, the Committee may make any adjustments it deems appropriate.

	 	 	 	 
	9.	Adoption Date

This Bonus Program was first adopted by the Committee
on December 9, 2004 (“Adoption Date”) with application effective January 1, 2005.

Administration

December 2004

6

Exhibit A

RAYONIER

ANNUAL CORPORATE BONUS
PROGRAM

TARGET BONUS

FOR RAYONIER EXECUTIVES
AS A PERCENT OF BASE SALARY* 

	 	 	 	 	 	 
	Salary Grade	Bonus Target %
	 	
	 	 	
	 
	
	32	 	 	86	 
	
	31	 	 	79	 
	
	30	 	 	73	 
	
	29	 	 	66	 
	
	28	 	 	55	 
	
	27	 	 	51	 
	
	26	 	 	47	 
	
	25	 	 	44	 
	
	24	 	 	41	 
	
	23	 	 	38	 
	
	22	 	 	36	 
	
	21	 	 	33	 
	
	20	 	 	30	 
	
	19	 	 	27	 

	 	 	 	 	 
	Key Employee Incentive Bonus Pool
	

	 	 	 	 	 
	 	Selected Key Employees
(Salary Grades15-18)	 	10% of aggregate Target Bonus Awards
for eligible Executives
(Salary Grade 19 and above)

times
CPF for the Performance Period	 

* Year-end Base Salary or
Performance Period ending base salary as may be applicable.

Administration

December 2004

7

Exhibit B

RAYONIER

ANNUAL CORPORATE BONUS PROGRAM

METHODOLOGY FOR COMPUTING
THE CORPORATE PERFORMANCE FACTOR 
FOR THE 2005 PERFORMANCE PERIOD

	 	 	 	 	 	 	 
	2005
Performance Goals	 	Performance Goal Calculation Formula 	 	2005
Weighting
	 	 	 	 	 	 	 
	Net Income vs. Budget	 	N.I. minus Budget N.I.

divided by Budget N.I.
plus 1	 	 	45.0	%
	 	 	 	 	 	 	 
	ROTC vs. Budget	 	ROTC minus Budget ROTC

divided by Budget ROTC
plus 1	 	 	15.0	%
	 	 	 	 	 	 	 
	CAD vs. Budget	 	CAD minus Budget CAD

divided by Budget CAD
plus 1

Apply formula separately for actual
cumulative CAD vs. budget for each quarter ending 3/31, 6/30, 9/30 and 12/31 within the Performance Period.	 	 	40.0	%

COMPUTATION OF CPF

Performance Goal
Calculations:  

	 	 	 	 
	 	Ø	 	Apply the Performance Goal Calculation Formula for each Performance Goal as specified above.

Performance Goal
Limitation:  

Following application of each
Performance Goal Calculation Formula:

	 	 	 	 
	 	Ø	 	If the result of the Calculation Formula is less than zero, record zero for that Performance Goal.

	 	 	 	 
	 	Ø	 	If the result of the Calculation Formula is greater than 1.5, record 1.5 for that Performance Goal.

Computation of CPF for the
Performance Period:

CPF for the Performance Period
is then determined by applying the applicable 2005 Weighting for the Performance Goal to the Calculation Formula
or the Performance Goal Limitation (if applicable) for such Performance Goal, and then taking the average of the
result.

8

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