Document:

MST ESTATES LLC REGULATIONS

 Exhibit 10.86 
  
 REGULATIONS OF 
  
 MST ESTATES, LLC 
  
 I. COMPANY NAME AND PURPOSE 
  
 1.01. Definition. The company is a domestic limited liability company as that term is defined and regulated by the Texas Limited Liability Company
Act. 
  
 1.02. Purpose. The company’s purpose is to:
Transact any and all lawful business for which limited liability companies may be organized under the laws of Texas, including but not limited to the following: 
  
 a. To carry on any business or any other legal or lawful activity allowed by law; 
  
 b. To acquire, own, use, convey, and otherwise dispose of and deal in real or
personal property or any interest in such property; 
  
 c. To
manufacture, buy, sell, and generally deal in goods, wares and merchandise of every class and description; 
  
 d. To buy, rent, sell, manufacture, produce, assemble, distribute, repair, and service any and all products the company desires to produce, and to provide
any and all services which the company desires to provide; 
  
 e.
To do such other acts as are incidental to the foregoing or desirable in order to accomplish the purpose for which the company was formed; 
  
 f. To have and exercise all rights and powers which are now or may hereafter be granted to a limited liability company by law. 
  
 1.03. Name in These Regulations. The name of this limited liability
company is “MST ESTATES, LLC”. This limited liability company is referred to in these regulations as the “Company”. 
  
 II. MANAGERS 
  
 2.01. Management. The Company shall be managed by a Manager or Managers. Managers are not required to be residents of Texas nor are they required
to be Members of the Company. 
  
 2.02. Number. There shall
be no less than two(2) Managers and no more than six (6) Managers. The number of initial Managers shall be stated in the Articles of Organization, thereafter, the Members shall determine by resolution the number of Managers, which number shall not
be increased except upon the unanimous vote of all Members. 
  

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 2.03. Manager’s Powers. The Managers have the authority to authorize the officers of the
Company to execute documents and instruments for the acquisition, mortgage, or disposal of property on behalf of the Company. 
  
 III. ELECTION OF MANAGERS 
  
 3.01. Vote Required. Managers are elected by the Members of the Company. Each member shall have the right to elect one-half (1/2) of the Managers,
and each Member agrees to vote all membership interests held by him, her or it in favor of such Managers as the other Members may have the right to designate pursuant to this Section 3.01. 
  
 3.02. Cumulative Voting. Cumulative voting is not permitted. The
Members shall be entitled to vote the percentage of membership interest owned by such Member for as many persons as there are Managers to be elected. 
  
 3.03. Time of Election. Election of Managers shall occur at any of the following times: 
  
 a. the annual meeting; 
  
 b. regular meetings of the Members; or 
  
 c. any special meeting of the Members. 
  
 IV. MANAGER’S MEETINGS, COMPENSATION AND COMMITTEES 
  
 4.01. Place of Meeting. Managers’ Meetings, regular or special,
may be held either in or outside the State of Texas. 
  
 4.02.
Presence at Meeting. Managers may attend and participate in these meetings in person or by use of electronic telephone or video conferencing equipment. 
  

4.03. Notice of First Meeting. The first meeting of the newly elected Managers shall be held without further notice immediately following the
annual meeting of Members. 
  
 a. The meeting shall be held at the
same place as the annual meeting, unless by unanimous consent of the Managers then elected and serving, such time or place shall be changed. 
  
 4.04. Regular Meetings. A regular meeting of the Managers may be held at such time as shall be determined from time to time by resolution of the
Managers. 
  
 4.05. Special Meetings. The Secretary shall
call a special meeting of the Managers whenever requested to do so by the President or by any Manager. 
  
 a. Such meeting shall be held at the time stated in the notice of meeting. 
  
 b. The purpose, place and time of the meeting shall be stated in a notice. 
  

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 4.06. Required Notice. All meetings of the Managers (annual, regular or special) shall be held
upon ten days’ written notice stating the date, time, place and purpose of the meeting. 
  
 a. The notice shall be delivered to each Manager either personally or by mail or at the direction of the President or the Secretary or the officer or person calling the meeting. 
  
 b. If all of the Managers execute a waiver of notice of the meeting, no
notice is required. Accordingly the meeting (whether annual, regular or special) shall be held at the time and at the place (either within or without the State of Texas) stated in the waiver of notice. 
  
 c. Attendance of Managers at any meeting shall constitute a waiver of notice
of such meeting, except where the Managers attend a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. 
  
 4.07. Consent without Meeting. Any action required by statute to be
taken at a meeting of the Managers, or any action which may be taken at a meeting of the Managers, may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all the Managers. 
  
 a. All consents shall have the same force and effect as a unanimous vote at a
meeting. 
  
 4.08. Quorum. A majority of the Managers
constitutes a quorum for the transaction of business at all meetings of the Managers unless a greater number is required by law or by the Articles of Organization. 
  
 a. The act of a majority of the Managers present at any meeting at which a quorum is present shall be the act of the
Managers unless the act of a greater number is required by statute, by the Articles of Organization or by these Regulations. 
  
 b. If there is no quorum at a meeting of the Managers, then the meeting shall adjourn and a new notice be sent for a new meeting. If there is no quorum
present at the successor meeting, then a majority of those present shall constitute a quorum, unless this action is prohibited by law. 
  
 4.09. Minutes. The Managers shall keep regular minutes of their proceedings and shall place those minutes in the Company’s minute book.

  
 4.10. Committees. The Managers may designate from among
the Managers one or more committees, each of which shall be comprised of one or more of its Managers. 
  
 Any such committee, to the extent provided in such resolution or the Articles of Organization or by these Regulations, shall have and may exercise all of
the authority of the Managers in the management of the business and affairs of the Company, subject to the limitations set forth in the Texas Limited Liability Company Act, and all amendments thereto. 
  

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 Each such committee shall keep regular minutes of its proceedings and report the same to the Managers
when required. 
  
 Any members of any such committee may be
removed by the Managers by the affirmative vote of a majority of the Managers, whenever in their judgment the best interests of the Company will be served thereby. 
  
 The designation of one or more committees and the delegation of authority to any such committee shall not operate to relieve
the Managers of any responsibility imposed upon them by law. 
  
 V.
MANAGER’S RESIGNATIONS, VACANCIES AND REMOVAL 
  
 5.01.
Resignation. Any Manager may resign at any time. 
  
 a.
Such resignation shall be made in writing and shall take effect at the time stated in the resignation. 
  
 b. If the resignation does not state the time that the resignation becomes effective, then the resignation shall be effective at the date and time when it
is delivered to the Company. 
  
 5.02. Vacancy. Any vacancy
occurring in the Managers may be filled by the Member who appointed the resigning Manager. 
  
 a. A Manager elected to fill a vacancy shall be elected for the unexpired term of his predecessor in office. 
  
 5.03. Removal. Any and all Managers may be removed, either for or without cause, at any special meeting of Members by the vote of the Member who
appointed such Manager. 
  
 a. Notice of the date, time, place and
purpose of the meeting shall be given to both the Members and the Managers. 
  
 b. The vacancy caused by such removal shall be filled by the vote of the Member who appointed such Manager. 
  
 VI. MEMBERS 
  
 6.01. Becoming a Member. A person acquiring an interest as a Member becomes a Member on the date he, she or it receives a certificate evidencing
membership in the Company. Notwithstanding the foregoing, no new membership interests may be issued by the Company without the prior written consent of all of the Members holding the then outstanding membership interests. 
  

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 6.02. Initial Members. The Initial Members and their respective percentages of membership
interests, are as set forth on Exhibit “A” hereto. All other Members, if any, shall be designated as new Members. 
  
 6.03. Capacity. Except as may be required elsewhere in these Regulations, any person may be a Member unless the person lacks capacity apart from
the Texas Limited Liability Company Act, as amended from time to time. 
  
 6.04. Classes or Groups of Members. Unless prohibited by law or the Articles of Organization, one class of Members is established. 
  
 6.05. Place and Manner of Meetings. All meetings of the Members shall be held at such time and place, within or without the State of Texas, as
shall be stated in the notice of the meeting or in a duly executed waiver of notice thereof. 
  
 a. Members may participate in such meetings by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a
meeting as provided herein shall constitute presence in person at such meeting except where a person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully
called or convened. 
  
 6.06. Annual Meeting. The annual
meeting of the Members for the election of Managers and for the transaction of all other business that may come before the meeting shall be held in the month of March of each year on the day and at the hour specified in the notice of the meeting.

  
 a. If the annual meeting is not held on the date above
specified, or if the election of Managers shall not be held on that date, the Managers shall cause a special meeting of the Members in lieu thereof to be held as soon thereafter as convenient, and any business transacted or election held at that
meeting shall be as valid as if held at the annual meeting. 
  
 b.
Failure to hold the annual meeting at the designated time shall not work a dissolution of the Company. 
  
 6.07. Voting Lists. The officer or agent having charge of the records reflecting the membership interest of each Member of each class, if more than
one class, shall make, at least ten (10) days before each meeting of Members, a complete list of the Members, entitled to vote at such meeting or any adjournment thereof. 
  
 a. The list shall be arranged in alphabetical order with the address of and percentage of membership interest of each Member
of each class. 
  
 b. The list shall be kept on file at the
registered office of the Company and shall be subject to inspection by any Member at any time during usual business hours. 
  

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 c. Such list shall also be produced and kept open at the time and place of the meeting and shall be
subject to the inspection of any Member during the whole time of the meeting. 
  
 d. The original records reflecting the membership interest of each Member of each class, if more than one class, shall be prima-facie evidence as to who are the Members entitled to examine such list or records or to
vote any meeting of Members. 
  
 e. Failure to comply with the
requirements of this Article shall not affect the validity of any action taken at such meeting. 
  
 6.08. Special Meetings. Special meetings of the Members may be called at any time by the President or by any Manager. 
  
 a. Special meetings of Members may also be called by the Secretary upon the
written request of the holders of at least twenty percent of the membership interests entitled to be voted at such meeting. 
  
 b. The request shall state the purpose or purposes of such meeting and the matters proposed to be acted on. 
  
 6.09. Notice. Written or printed notice stating the place, day, time
and purpose of the meeting shall be delivered not less than ten (10) nor more than sixty (60) days before the date of the meeting either personally or by mail, by or at the direction of the President, the Secretary or the officer or person calling
the meeting, to each Member entitled to vote at the meeting. 
  
 a. This notice may be waived as provided in these Regulations. 
  
 b. If the notice is mailed, such notice shall be deemed to be delivered when deposited in the United States mail addressed to the Member at his address as it appears on the records of the Company, with postage thereon prepaid. 

 
 c. Any notice required to be given to any Member hereunder or under the
Articles of Organization need not be given to the Member if: 
  
 (1) Notice of three (3) consecutive annual meetings of the Company and all notices of meetings held during the period between those annual meetings have been mailed to that person, addressed at his or her address as shown on the records of
the Company, and have been returned undeliverable. 
  
 (2) Any
action or meeting taken or held without notice to such person shall have the same force and effect as if the notice had been duly given. 
  
 6.10. Quorum of Members. The holders of at least 70% of the membership interest entitled to vote, represented in person or by proxy, shall
constitute a quorum at a meeting of Members. 
  

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 a. In no event shall a quorum consist of the holders of less than 70% of the membership interests
entitled to vote and thus represented at such meeting. 
  
 b. The
vote of the holders of a majority of the membership interests entitled to vote and represented at a meeting at which a quorum is present shall be the act of the Members’ meeting, unless the vote of a greater number is required by law, the
Articles of Organization or these Regulations. 
  
 6.11.
[Reserved] 
  
 6.12. Voting of Membership Interests. Each
outstanding membership interest shall be entitled to vote the percentage of membership interest owned by such Member on each matter submitted to a vote at a meeting of Members, except to the extent that the voting rights of the membership interest
are limited or denied by the Articles of organization or by law. 
  
 6.13. Proxy Voting. A Member may vote either in person or by proxy executed in writing by the Member or by his duly authorized attorney in fact. 
  

a. No proxy shall be valid after eleven (11) months from the date of its execution unless otherwise provided in the proxy. 
  
 b. Each proxy is revocable unless the proxy form conspicuously states that
the proxy is irrevocable and the proxy is coupled with an interest. 
  
 c. At each election for Managers, each Member shall be entitled to vote for the election of an equal number of Managers, so that one-half (1/2) of the Managers may be elected by each Member. 
  
 6.14. Closing Record Books and Fixing Record Date. For the purpose of
determining Members entitled to notice of or to vote at any meeting of Members, the Managers may provide that the record books shall be closed for a stated period not exceeding thirty (30) days. 
  
 a. If the record books are closed for the purpose of determining Members
entitled to notice of or to vote at a meeting of Members, such books shall be closed for at least ten (10) days immediately preceding such meeting. 
  
 b. In lieu of closing the record books, these Regulations or in the absence of an applicable Regulation, the Managers may fix in advance a date as the
record date for any such determination of Members, such date in any case to be not more than thirty days (30) and in the case of a meeting of Members, not less than ten (10) days prior to the date of which the particular action requiring such
determination of Members is to be taken. 
  
 c. If the record
books are not closed and no record date is fixed for the determination of Members entitled to notice of or to vote at a meeting of Members, or Members entitled to receive distribution, the date on which notice of the meeting is mailed or the date on
which the resolution of the Managers declaring such distribution is adopted, as the case may be, shall be the record date for such determination of Members. 
  

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 d. When a determination of Members entitled to vote at any meeting of Members has been made as provided
in this section, such determination applies to any adjournment thereof, except where the determination has been made through the closing of record books and the stated period of closing has expired. 
  
 6.15. Fixing Record Dates for Consents to Action. Unless a record date
has been previously fixed or determined in these regulations, whenever action by Members is proposed to be taken by consent in writing without a meeting of Members, the Managers may fix a record date for purposes of determining Members entitled to
consent to that action. 
  
 a. This record date may not precede,
and may not be more than ten days after, the date upon which the resolution fixing the record date is adopted by the Managers. 
  
 b. If no record date has been fixed by the Managers and the prior action of the Managers is not required by the Texas Limited Liability Company Act, and
any amendments thereto, the record date for determining Members entitled to consent to action in writing without a meeting shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered
to the Company by delivery to its registered office, its principal place of business, or an officer of the Company having custody of the books in which proceedings of meetings of Members are recorded. 
  
 c. Delivery shall be by hand or by certified or registered mail, return
receipt requested. Delivery to the Company’s principal place of business shall be addressed to the president or the principal executive officer of Company. 
  

d. If no record date has been fixed by the Managers and prior action of the Managers is required by the statute, the record date for determining
Members entitled to consent to action in writing without a meeting shall be at the close of business on the date on which the Managers adopt a resolution taking such prior action. 
  
 6.16. Action without Meeting. Any action that is required to be taken at a meeting of the Members by law or by the
Texas Limited Liability Company Act, may be taken by signing a consent to the action in lieu of attending the meeting. 
  
 a. Every written consent pursuant to this Section shall be signed, dated and delivered to the Company’s administrative offices. 
  
 6.17 Percentage of Membership Interest. For purposes of these
Regulations, a Member’s “percentage of membership interest” shall equal a fraction (represented as a percentage), the numerator of which is the number of units held by such Member as of the record date divided by the total of all
units of the Company issued and outstanding as of the record date. 
  

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 VII. ASSIGNMENT AND CANCELLATION OF A MEMBERSHIP INTEREST 
  
 7.01. Assignability. Membership interests shall be assignable only
after the provisions of this Section 7.01 have been fully complied with. 
  
 a. All membership interests shall be accepted and held subject to a preferential right of the Company to purchase in the event any Member is desirous of selling such Member’s membership interest. No membership
interests shall be sold without first being offered in writing to the Company at the same price and terms at which same is proposed to be sold to any bona fide purchaser. Such notice to the Company shall include the terms of any bona fide offer as
well as the name of the person who made the offer. The Company shall have thirty (30) days within which to reject or exercise such option and preference right to purchase all (but not less than all) of the membership interest proposed to be sold
(hereinafter the “offer period”). 
  
 b. In the event
the Company does not elect to purchase all of the membership interest proposed to be sold, then the Members of the Company shall have a second preferential right for an additional period of fifteen (15) days to purchase all (but not less than all)
of the membership interest being offered for sale in accordance with their then pro rata ownership of the Company’s membership interests (hereinafter the “second offer period”). 
  
 c. The above provisions shall be fully binding on each Member, such
Member’s successors and assigns. 
  
 d. If the Company and
the Members do not exercise their option to purchase all of the membership interest of a Member desiring to sell, then such Member may, subject to the terms and provisions hereof, assign such Member’s membership interest to the person or entity
making the bona fide offer. If such assignment is not completed within thirty (30) days after the expiration of the second offer period, then any assignment or transfer after that date shall again be subject to the restrictions set forth in this
Section 7.01. 
  
 e. In the event any Member desires at any time
to purchase the entire membership interest of any other Member, (hereinafter called offeror), such Member shall submit a written proposal to such Member from whom offeror desires to purchase (hereinafter called offeree) by certified mail, setting
forth offeror’s offer to purchase all (but not less than all) of the membership interest of such offeree and the cash purchase price offered to be paid therefor. Said offeree shall, within ninety (90) days from receipt of said written proposal,
(1) accept said offer, assign all of offeree’s membership interest to offeror and receive said purchase price, or (2) notify offeror of offeree’s rejection of said proposal to purchase offeree’s membership interest and exercise
offeree’s vested right (created by reason of receipt of said offer, sometimes referred to as a “buy-sell” offer) to purchase all (but not less than all) of such offeror’s membership interest at the same cash price as was offered
to offeree by offeror, in which event offeror shall be obligated to deliver all of offeror’s certificates of membership interest, duly assigned to offeree upon tender of said cash price to offeror. A failure by offeree to timely and properly
accept offeror’s written offer, or to reject it and duly effect counter-purchase, shall be deemed for all purposes an acceptance by offeree to sell to offeror all of offeree’s membership interest upon the terms set out in such offer.

  

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 f. The provisions of this Section 7.01 may be enforced by suits for specific performance, and relief for
breach hereof shall not be limited to an action for damages only. In the event litigation is brought by any one party against another for an alleged breach of this agreement, the successful or prevailing party shall be entitled to recover, in
addition to any and all other relief herein afforded or afforded by law, the amount of reasonable attorney’s fees and litigation expenses incurred by reason of such breach. 
  
 g. Notwithstanding anything to the contrary contained herein, an offeror shall not have the right to exercise the buy-sell
offer unless such offeror simultaneously makes a buy-sell offer to purchase all (but not less than all) of the offeree’s limited partnership interest in MST Production, Ltd., and all (but not less than all) of the offeree’s membership
interest in MST GP, LLC. Similarly, if an offeror makes a buy-sell offer to purchase all (but not less than all) of an offeree’s limited partnership interest in MST Production, Ltd., and all (but not less than all) of an offeree’s
membership interest in MST GP, LLC, such offeror shall be deemed to have made a buy-sell offer with respect to all (but not less than all) of such offeree’s membership interests in the Company pursuant to this Section 7.01. 
  
 h. Until the assignee becomes a Member, the assignor Member continues to be a
Member and to have the power to exercise any rights or powers of a Member, except to the extent those rights or powers are assigned. 
  
 7.02. Evidence of Membership Interest. A Member’s membership interest may be evidenced by a certificate of membership interest issued by this
Company. 
  
 7.03. Right of an Assignee to Become a Member.

  
 a. An assignee of a membership interest may become a Member
if and to the extent that a majority of the Managers consent. 
  
 b. It is the intent of these Regulations that the tax status of this Company be the same as for a partnership. 
  
 c. Except as allowed by the Internal Revenue Code and any corresponding rules and regulations, it is intended that this Company shall not allow free
transferability of interests, and to the extent possible, these Regulations shall be read and interpreted to prohibit the free transferability of interests of any Member. 
  
 d. An assignee who becomes a Member has, to the extent assigned, the rights and powers and is subject to the restrictions
and liabilities of a Member under these Regulations and the Texas Limited Liability Company Act, as amended from time to time. 
  
 e. Unless otherwise provided by these Regulations, an assignee who becomes a Member also is liable for the obligations of the assignor to make
contributions but is not obligated for liabilities unknown to the assignee at the time the assignee became a Member and which could not be ascertained from these Regulations. 
  
 f. Whether or not an assignee of a membership interest becomes a Member, the assignor is not released from the
assignor’s liability to this Company. 
  

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 7.04 Cancellation of Membership Interest. In the event that a Member or an affiliate of a Member
also holds a limited partnership interest in MST Production, Ltd., and such limited partnership interest is purchased by the Limited Partnership pursuant to Section 11.2(2) of the Limited Partnership Agreement, dated on or about the date of these
Regulations, relating to the Limited Partnership, then such Member’s membership interest in the Company shall automatically be cancelled, and the respective percentages of membership interests held by each Member as set forth on Exhibit
“A” hereto shall be proportionately adjusted. 
  
 VIII.
BANKRUPTCY OR DISSOLUTION OF A MEMBER 
  
 8.01. Bankruptcy or
Dissolution of Member. 
  
 a. The bankruptcy or dissolution
of a Member shall not cause a dissolution of the Company. 
  
 IX.
TAXATION 
  
 9.01. Tax Status. It is the intent of these
Regulations that the tax status of this Company be the same as for a partnership, and except as allowed by the Internal Revenue Code and any corresponding rules and regulations. 
  
 a. It is intended that this Company shall not have continuity of life and these regulations shall be read and interpreted as
to prohibit continuity of life. 
  
 X. CAPITAL ACCOUNTS OF THE
MEMBERS 
  
 10.01. Establishment of Account. A capital
account will be established for each Member and maintained in such a manner to correspond with the capital of the Members as reported for federal income tax purposes. 
  
 a. Each Member’s capital account shall be credited with the value of a Member’s contribution of cash or other
property to the Company, and shall be credited or charged annually with the Member’s distributive share of items of income, gain, loss, deduction and credit for federal income tax purposes. 
  
 b. Distributions of cash or other property to Members shall be charged
against their respective capital accounts as withdrawal of capital. 
  
 c. The federal income tax basis of a Member’s interest in the Company, of property contributed to the Company by a Member, and all other matters pertaining to the distributive share and taxation of items of income, gain, loss,
deduction and credit will be as otherwise prescribed by Subchapter K of the Internal Revenue Code. The capital accounts will not bear interest. 
  
 XI. CERTIFICATES AND MEMBERS 
  
 11.01. Certificates. Certificates in the form determined by the Managers shall be delivered representing all membership interest to which Members
are entitled. Such certificates shall be consecutively numbered, and shall be entered in the books of the Company as they are issued. 
  

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 Each certificate shall state on the face thereof the holder’s name, the class of membership, the
membership interest, and such other matters as may be required by the laws of the State of Texas. 
  
 They shall be signed by an officer of the Company, and may be sealed with the seal of the Company or a facsimile thereof if adopted. The signature of such
officer upon the certificates may be facsimile. 
  
 11.02.
Replacement of Lost or Destroyed Certificates. The Managers may direct a new certificate or certificates to be issued in place of any certificate or certificates previously issued by the Company alleged to have been lost or destroyed, upon
the making of an affidavit of that fact by the holder of record thereof, or his duly authorized attorney or legal representative who is claiming the certificate to be lost or destroyed. 
  
 When authorizing such issue of a new certificate or certificates, the Managers in their discretion and as a condition
precedent to the issuance thereof, may require the owner of such lost or destroyed certificate or certificates or his legal representative to advertise the same in such a manner as it shall require or to give the Company a bond with surety and in
form satisfactory to the Company (which bond shall also name the Company’s transfer agents and registrars, if any, as obligees) in such sum as it may direct as indemnity against any claim that may be made against the Company or other obligees
with respect to the certificate alleged to have been lost or destroyed, or to both advertise and also give such bond. 
  
 11.03. Transfer of Membership Interest. Upon surrender to the Company or the transfer agent of the Company of a certificate for membership
interests duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, and the required approval of the Managers, the Company shall issue a new certificate to the person entitled to the certificate, cancel the
old certificate and record the transaction upon its books. 
  
 11.04. Registered Members. The Company is entitled to treat the holder of record of any certificate or certificate of membership interest of the Company as the owner thereof for all purposes and shall not be bound to recognize any
equitable or other claim to or interest in such membership interest or any rights deriving from such membership interest on the part of any other person, including (but without limitation) a purchaser, assignee or transferee, unless and until such
other person becomes the holder of record of such membership interest, whether or not the Company shall have either actual or constructive notice of the interest of such person, except as otherwise provided by law. 
  
 11.05. Preemptive Rights. No Member or any other person has any
preemptive right whatsoever. 
  
 11.06. Contribution. A
Member’s contribution may be in cash, property, or services rendered, or a promissory note or other obligation to pay cash or transfer property to the Company. 
  

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 11.07. Liability for Contribution Obligations. A promise by a Member to make a contribution to, or
otherwise pay cash or transfer property to, the Company is not enforceable unless set out in writing and signed by the Member. 
  
 A Member or the Member’s representative or successor is obligated to the Company to perform an enforceable promise to make a contribution to or
otherwise pay cash or transfer property to the Company, notwithstanding the Member’s death, disability, or other change in circumstances. 
  
 If a Member’s legal representative or successor does not make a contribution or other payment of cash or transfer of property required by the
enforceable promise, that Member or the Member’s legal representative or successor is obligated to pay to the Company the amount owed. 
  
 A Member who fails to make a payment of cash or transfer of property to the Company required by an enforceable promise shall be liable for damages
including, without limitation, attorney’s fees incurred by the Company in connection with such failure. 
  
 11.08. Restriction upon Ownership and Transfer of Ownership Interest. The membership interest and transferability of membership interest in the
Company are substantially restricted. 
  
 Neither record title nor
beneficial ownership of a membership interest may be transferred or encumbered without the consent of a majority of the Managers. 
  
 This Company is formed by a closely-held group who know and trust one another, who will have surrendered certain management rights (in exchange for
limited liability) based upon their relationship and trust. 
  
 Capital is also material to the business and investment objectives of the Company and its federal tax status. 
  
 An unauthorized transfer of a membership interest could create a substantial hardship to the Company, jeopardize its capital base, and adversely affect
its tax structure. 
  
 These restrictions upon ownership and
transfer are not intended as a penalty, but as a method to protect and preserve existing relationships based upon trust and the Company’s capital and its financial ability to continue. 
  
 The ownership and transfer of a membership interest is further subject to the
following disclosure and condition: 
  
 THE MEMBERSHIP INTEREST OF THE COMPANY
HAS NOT NOR WILL BE, REGISTERED OR QUALIFIED UNDER FEDERAL OR STATE SECURITIES LAWS. THE MEMBERSHIP INTEREST OF THE COMPANY MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED UNLESS SO REGISTERED OR QUALIFIED, OR UNLESS AN
EXEMPTION FROM REGISTRATION OR QUALIFICATION EXISTS. THE AVAILABILITY OF ANY EXEMPTION FROM REGISTRATION OR QUALIFICATION MUST BE ESTABLISHED BY AN OPINION OF COUNSEL FOR THE OWNER THEREOF, WHICH OPINION OF COUNSEL MUST BE REASONABLY SATISFACTORY TO
THE COMPANY. 
  

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 No new membership interests may be issued by the Company without the prior written consent of all of the
Members holding then outstanding membership interests. 
  
 Notwithstanding the foregoing restrictions upon transfer and ownership the following transfers are permitted. 
  
 11.09. Required Transfers. If any person or agency should acquire the interest of a Member as the result of an order of a court of competent
jurisdiction which the Company is required to recognize, or if a Member makes an unauthorized transfer of a membership interest which the Company is required to recognize, the interest of the transferee may then be acquired by the Company upon the
following terms and conditions: 
  
 The Company is entitled to
acquire the membership interest by giving written notice to the transferee of its intent to purchase within sixty (60) days from the date it is finally determined that the Company is required to recognize the transfer. 
  
 The Company will have one hundred twenty (120) days from the first day of the
month following the month in which it delivers notice exercising its option to purchase the membership interest. The valuation date for the membership interest will be the first day of the month following the month in which notice is delivered.

  
 Unless the Company and the transferee agree otherwise, the
fair market value of a Member’s membership interest is to be determined by the written appraisal of a person or firm qualified to value this type of business. 
  
 Neither the transferee of an unauthorized transfer nor the Member causing the transfer will have the right to vote during
the prescribed option period, or if the option to purchase is timely exercised, until the sale is actually closed. 
  
 XII. OFFICERS 
  
 12.01. Number. The officers of the Company shall consist of a President, one or more Vice-Presidents, a Secretary, and a Treasurer, each of whom shall be elected by the Managers. Such offices may be held by the same person.

  
 12.02. Election. The Managers, at their first meeting
after each annual meeting of Members, shall choose a President, one or more Vice-Presidents, a Secretary, and a Treasurer. No officers need be a Manager, a Member, or a resident of Texas. 
  
 12.03. Other Officers. The Managers may elect or appoint such other officers and agents as they shall deem necessary,
who shall be appointed for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Managers. Any two or more offices may be held by the same person. 
  
 12.04. Term. Each officer of the Company shall hold office until his
successor is chosen and qualified in his stead or until his death or until his resignation or removal from office. 
  

 14 

 12.05. Removal. Any officer or agent or member of a committee elected or appointed by the Managers
may be removed by the majority vote of the Managers whenever in their judgment the best interest of the Company will be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Election or
appointment of an officer or agent or member of a committee shall not of itself create contract rights. 
  
 12.06. Vacancies. If any office becomes vacant for any reason, the vacancy may be filled by the Managers. The officer so elected shall be elected
for the unexpired term of his predecessor in office. 
  
 12.07.
Compensation. The compensation of all officers and agents shall be fixed by the Managers. 
  
 12.08. Powers. The Managers may designate one or more persons as officers of the Company who are not Managers. 
  
 Each officer shall have, subject to these Regulations, in addition to the
duties and powers specifically set forth in these regulations, such powers and duties as are commonly incident to his or her office and such duties and powers as the Managers shall from time to time designate. 
  
 All officers shall perform their duties subject to the directions and under
the supervision of the Managers. The President may secure the fidelity of any and all officers by bond or otherwise. 
  
 12.09. Chairperson. The Chairperson, if there shall be such an officer, shall, if present, preside at all meetings of the Managers and exercise and
perform such other powers and duties as may from time to time be assigned to the Chairperson or prescribed by these Regulations. 
  
 12.10. President. Subject to the supervisory powers, if any, as may be given by the Managers to the Chairperson, if there be such an officer, the
President shall be the chief executive officer of the Company, and subject to the control of the Managers, shall, in general, supervise and control all of the business and affairs of the Company. 
  
 The President shall preside at all meetings of the Members and the Managers
in the absence of the Chairperson. The President or any Vice-President together with the Secretary or any Assistant Secretary may execute certificates of membership of the Company, any deeds, mortgages, bonds, contract or other instrument, in the
name of the Company, which the Managers have authorized to be executed, except in cases where the signing and execution thereof shall be delegated by the Managers or by these Regulations to some other officer or agent of the Company, or shall be
required by law to be otherwise signed and executed. 
  
 12.11.
Vice-Presidents. In the absence or disability of the President, the Vice-President shall perform all the duties of the President. If there is more than one Vice-President, the Senior Vice-President (in order of their rank as fixed by the
Managers, or if not 
  

 15 

 ranked, the Vice-President designated by the Managers) shall perform all the duties of the President. When so acting such
person shall have all the powers of and be subject to all the restrictions upon the President. 
  
 The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Managers or these Regulations. 
  
 12.12. Secretary and Assistant Secretaries. The Secretary shall attend
all meetings of the Managers and all meetings of the Members and shall record all votes and the minutes of all proceedings in a book suitable for that purpose, and shall perform like duties for the standing committees when required. 
  
 He or she shall give or cause to be given notice of all meetings of the
Members and all meetings of the Managers required by these Regulations or law to be given. 
  
 If for any reason the Secretary shall fail to give notice of any special meeting of the Managers called by one or more of the persons identified in these Regulations, or if he or she shall fail to give notice of any
special meeting of the Members called by one or more of the persons identified in these Regulations, then any such person or persons may give notice of any such special meeting. 
  
 In addition, the Secretary shall execute together with the President all certificates of membership issued by the Company.

  
 The Secretary shall also keep a certificate of membership book
in which shall be correctly recorded all transactions pertaining to the membership interest of the Company. If in accordance with these Regulations the Company seal is to be affixed to an instrument, the Secretary shall attest with his or her
signature after such seal has been affixed by the President in accordance with the Regulations. 
  
 The Secretary shall keep in safe custody the seal of the Company. The Secretary shall have such other powers and perform such other duties as from time to
time may be prescribed by him by the Managers or these Regulations. The Assistant Secretaries in order of their seniority shall, in absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary. 
  
 The Assistant Secretaries shall perform such other duties as the Managers
shall prescribe or as provided in these Regulations. In the absence of the Secretary or an Assistant Secretary, the minutes of all meetings of the Managers and Members shall be recorded by such person as shall be designated by the President or by
the Managers. 
  
 12.13. Treasurer and Assistant
Treasurers. The Treasurer shall have the custody of the Company funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Company and shall deposit all moneys and other valuable
effects in the name and to the credit of the Company in such depositories as may be designated by the Managers. 
  

 16 

 The Treasurer shall disburse the funds of the Company as may be ordered by the Managers, taking proper
vouchers for such disbursements. He or she shall keep and maintain or cause to be kept and maintained, the Company’s books of account and shall render to the President and Managers an account of all his transactions as Treasurer and of the
financial condition of the Company and exhibit his books, records and accounts to the President or Managers at any reasonable time. 
  
 He or she shall disburse funds for capital expenditures as authorized by the Managers and in accordance with the orders of the President, and present to
the President for his attention any requests for disbursing funds if in the judgment of the Treasurer any such request is not properly authorized. 
  
 He or she shall make a detailed annual report of the entire business and financial condition of the Company. If required by the Managers, he or she shall
give the Company a bond in such sum and with such surety or sureties as shall be satisfactory to the Managers for the faithful performance of the duties of his office and for the restoration to the Company, in case of his death, resignation,
retirement or removal from office, of all books, papers, vouchers, money and other property of whatever kind in his possession or under his control belonging to the Company. 
  
 The Treasurer shall have such other powers and perform such other duties as from time to time may be prescribed for him by
the Managers or these Regulations. 
  
 12.14. Resignations.
Any officer may resign at any time. For the resignation to be effective, the officer must resign in writing. The resignation shall take effect at the time specified in the written resignation, or, if no time is specified then at the time of its
receipt by the President or Secretary. The acceptance of a resignation is not necessary to make it effective, unless expressly so provided in the resignation. 
  

XIII. OTHER PROVISIONS 
  
 13.01. Declaration and Payment. Distributions to the Members may be authorized by the Managers at any regular or special meeting and made by the
Company. Distributions may be paid in cash or in property of the Company. 
  
 13.02. Fiscal Year. The fiscal year of the Company shall end on December 31st in each and every year. 
  
 13.03. Offices. The Company’s principal office is located at 13405 Highway 191, Odessa, Texas 79765. The Managers are entitled to change the
Company’s principal office in their discretion. 
  
 13.04.
Registered Agent and Office. The registered agent and his or her office for the Company shall be as submitted to the Office of the Secretary of State of the State of Texas as required by law. 
  
 The agent and the address may be changed from time to time and the same shall
be filed with the Secretary of State’s office as required by law. 
  

 17 

 13.05. Other Offices. The Company may also maintain other offices as the Managers may decide.

  
 XIV. INDEMNIFICATION 
  
 14.01. Generally. The Company shall indemnify a person who was, is, or
is threatened to be made a named defendant or respondent in a proceeding because the person is or was a Manager, Member or Officer of the Company if it is determined in accordance with this Article that the person: 
  
 1. acted in good faith; and 
  
 b. reasonably believed that his or her conduct was in the Company’s best
interests. 
  
 14.02. Personal Benefit. A Manager may not
be indemnified where the person is found liable on the basis that personal benefit was improperly received by him or her or in which the person is found liable to the Company. 
  
 14.03. Scope of Indemnification. A person shall be indemnified under this Article against judgments, penalties
(including excise and similar taxes), fines, settlements, and reasonable expenses actually incurred by the person in connection with the proceeding. 
  
 14.04. Determination of Indemnification. A determination of indemnification under any section of this Article must be made a by a majority vote of
a quorum consisting of Managers who at the time of the vote are not named defendants or respondents in the proceeding. 
  
 XV. DISSOLUTION 
  
 15.01. Generally. This Company shall be dissolved on the first of the following to occur: 
  
 a. When the period fixed for the duration of this Company expires; or

  
 b. On the occurrence of events specified in the Articles of
Organization or Regulations to cause dissolution; or 
  
 c. Upon
written consent of all Members to dissolution; or 
  
 d. Upon
entry of a decree of judicial dissolution under the Texas Company Act. 
  
 15.02. Judicial Dissolution. On application by or for a Member, a court of competent jurisdiction may decree dissolution of this Company if it is not reasonably practicable to carry on the business of this Company in conformity with
its Articles of Organization and these Regulations. 
  
 15.03.
Winding Up. On the dissolution of this Company, this Company’s affairs shall be wound up as soon as reasonably practicable. The winding up shall be accomplished by the Managers or Members. 
  

 18 

 a. On the winding up of the Company, its assets shall be paid or transferred as follows: 
  
 1. To the extent otherwise permitted by law, to creditors, including
Members who are creditors in satisfaction of liabilities (other than for distributions) of the Company, whether by payment or by establishment of reserves; 
  
 2. Unless otherwise provided by the Articles of Organization or these Regulations, to Members and former Members in satisfaction of the Company’s
liability for distributions; and 
  
 3. Unless otherwise provided
by the Articles of Organization or these Regulations, to Members in the manner provided in these Regulations. 
  
 15.04. Distributions Upon Termination and Dissolution of the Company. Upon termination and dissolution of the Company, the Managers will proceed to
wind up the affairs of the Company. 
  
 The liabilities and
obligations to creditors and all expenses incurred in its liquidation and dissolution will be paid and will have first priority in winding up as otherwise provided in these Regulations. 
  
 The Managers may retain from available cash and other assets of the Company sufficient reserves for anticipated and
contingent liabilities. 
  
 Undistributed cash, and other property
valued at its fair market value on the date of distribution, will be distributed to the Members in the following order: 
  
 a. Distributions will first be made to repay any loans to the Company by a Member, including the amount of any deferred payment obligation to a Member or
a Member’s personal representative as the result of a buy-out by the Company of a Member’s interest; 
  
 b. Distributions will then be made to the Members in an amount equal to the credit balances in their capital accounts so that the capital account of each
Member shall be brought to zero. For the purpose of determining distributions in liquidation, a negative capital account balance will be considered to be a loan from the Company to a Member; 
  
 c. The balance, if any, will be made to the Members in an amount equal to
each Member’s percentage interest in the Company as determined immediately prior to the distribution of the credit balances of the Member’s capital accounts. 
  
 The Company may continue beyond its scheduled termination date for a time reasonably necessary to conclude the
administration of the Company, pay expenses of termination and to distribute property to those entitled to such distribution. 
  

 19 

 XVI. ARBITRATION 
  

16.01 In the event of any dispute between or among any of the parties to this Agreement, the parties involved in such dispute shall use good faith
efforts to resolve the dispute. If the dispute cannot be so resolved, the dispute shall be submitted to binding arbitration. Such arbitration shall be conducted by a single arbitrator (the “Arbitrator”) in accordance with the Commercial
Rules of the American Arbitration Association (the “AAA”) in effect from time to time and the following provisions: 
  
 a. In the event of any conflict between the Commercial Rules in effect from time to time and the provisions of this Agreement, the provisions of this
Agreement shall prevail and be controlling. 
  
 b. The parties
shall commence the arbitration by jointly filing a written submission with the Fort Worth, Texas, office of the AAA in accordance with Commercial Rule 5 (or any successor provision). 
  
 c. No depositions or other discovery shall be conducted in connection with the arbitration. 
  
 d. Not later than thirty (30) days after the conclusion of the arbitration
hearing, the Arbitrator shall prepare and distribute to the parties a writing setting forth the arbitral award and the Arbitrator’s reasons therefor. Any award rendered by the Arbitrator shall be final, conclusive and binding upon the parties,
and judgment thereon may be entered and enforced in any court of competent jurisdiction, provided that the Arbitrator shall have no power or authority to (i) award damages in excess of the portion of any damages originally claimed in connection with
such dispute, (ii) award multiple, consequential, punitive or exemplary damages, or (ii) grant injunctive relief, specific performance or other equitable relief. 
  
 e. The Arbitrator shall have no power or authority, under the Commercial Rules or otherwise, to (i) modify or disregard any
provision of this Agreement or (ii) address or resolve any issue not submitted by the parties. 
  
 f. In connection with any arbitration proceeding pursuant to this Agreement, each party shall bear its own costs and expenses, except that the fees and costs of the AAA and the Arbitrator, the costs and expenses of
obtaining the facility where the arbitration hearing is held, and such other costs and expenses as the Arbitrator may determine to be directly related to the conduct of the arbitration and appropriately borne jointly by the parties (which shall not
include any party’s attorneys’ fees or costs, witness fees (if any), costs of investigation and similar expenses) shall be shared equally by the parties to such proceeding. 
  
 XVII. AMENDMENTS 
  
 17.01 These Regulations may not be amended except by a writing signed by the holders of at least 70% of the then outstanding membership interests of the
Company. 
  
 IN WITNESS WHEREOF, these Regulations of MST ESTATES,
LLC have been executed as of September 12, 2005, and shall be effective as of June 28, 2005. 
  

 20 

			
	THE COMPANY:
	
	MST ESTATES, LLC
		
	By:	 	 /s/ Daniel J. Eastman

	 	 	Daniel J. Eastman, Manager
		
	By:	 	 /s/ Luke Morrow

	 	 	Luke Morrow, Manager
	
	THE INITIAL MEMBERS:
	
	MICROGY, INC.
		
	By:	 	 /s/ Randall L. Hull

	 	 	Randall L. Hull, President
	
	SOUTH-TEX TREATERS, INC.
		
	By:	 	 /s/ David C. Morrow

	 	 	David C. Morrow, President

  

 21 

 EXHIBIT “A” 
  

			
	 Member

	  	% Membership Interest

	 MICROGY, INC.
	  	60%
		
	 SOUTH-TEX TREATERS, INC.
	  	40%

  

 22Rayonier Inc. Executive Severance Pay Plan

 Exhibit 10.2 
  
 Rayonier Inc. 
 Executive Severance Pay Plan 
  
 Human Resources

 September 2005 

 RAYONIER INC. 
  
 EXECUTIVE SEVERANCE PAY PLAN 
  

1. Purpose 
  
 The Compensation and Management Development Committee of the Board of Directors of Rayonier Inc. recognizes that, as with many publicly held corporations, there exists the possibility of a Change in Control of the
Company. This possibility and the uncertainty it creates may result in the loss or distraction of senior executives of the Company, to the detriment of the Company and its shareholders. 
  
 Accordingly, the Committee has determined that appropriate steps should be taken to assure the Company of the continued employment,
attention and dedication to duty of its senior executives-including maintaining professionalism, indifference and objectivity in negotiating with a potential acquirer and to seek to ensure the availability of their continued service, notwithstanding
the possibility, threat, or occurrence of a Change in Control. 
  
 Therefore, in
order to fulfill the above purposes, this Executive Severance Pay Plan is adopted effective as specified in Section 17. 
  
 The definitions of capitalized terms are located in Section 8. 
  
 2. Covered Employees 
  
 Covered employees under this Plan are those full-time, regular executive salaried employees of the Company, who are identified and designated as Tier I or Tier II on Appendix A attached hereto (each an
“Executive”), as such Appendix A may be amended by the Committee from time to time prior to a Change in Control. 
  
 An Executive shall cease to be a participant in this Plan only as a result of termination or amendment of this Plan complying with Section 13, or when he or
she ceases to be a full time employee of the Company, unless, at the time he or she ceases to be an employee, such Executive is entitled to payment of Separation Benefits as provided in this Plan or there has been an event or occurrence that
constitutes Good Reason after a Change in Control that would enable Executive to terminate his or her employment and receive Separation Benefits. An Executive entitled to payment of Separation Benefits under the Plan shall remain a participant in
the Plan until the full amount of the Separation Benefits has been paid to Executive. 
  
 3. Upon a Qualifying Termination 
  

	A.	 Qualifying Termination. If, within two years following a Change in Control, (a) an Executive terminates his or her full time employment for Good Reason,
or (b) the Company terminates an Executive’s full time employment, the Executive shall be provided Scheduled Severance Pay and Additional Severance (collectively, “Separation  

  

 S - 1 

	 	 
Benefits”) in accordance with the terms of this Plan, except that Separation Benefits shall not be payable where Executive:

  

	 	•	 	is terminated for Cause; 

  

	 	•	 	voluntarily resigns (including normal retirement), other than for Good Reason; 

  

	 	•	 	voluntarily fails to return from an approved leave of absence (including a medical leave of absence); or 

  

	 	•	 	terminates employment as a result of Executive’s death or Disability. 

  
 Any non-excepted termination is a “Qualifying Termination.” 
  

	B.	Definitions Related to Qualifying Termination. For purposes of this Section 3, the following terms have the indicated definitions: 

  
 “Cause” shall mean with respect to any Executive:
(i) the willful and continued failure of Executive for a period of ninety (90) days to perform substantially Executive’s duties with the Company (other than any such failure resulting from incapacity due to physical or mental
illness), after a written demand for substantial performance is delivered to Executive by the Board of Directors of the Company that specifically identifies the manner in which the Board believes that Executive has not substantially performed
Executive’s duties, or (ii) the engaging by Executive in illegal conduct or gross misconduct that is demonstrably injurious to the Company. For purposes of this definition, no act or failure to act on the part of Executive shall be
considered “willful” unless it is done, or omitted to be done, by Executive without reasonable belief that Executive’s action or omission was in the best interests of the Company. Any act or failure to act based upon authority given
pursuant to a resolution duly adopted by the Board of Directors or upon the instructions of the Chief Executive Officer or a senior officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done,
or omitted to be done, by Executive in good faith and, in the best interests of the Company. An Executive shall be deemed to have engaged in illegal conduct and shall be subject to termination for Cause if Executive has been indicted or charged by
any prosecuting agency with the commission of a felony. 
  
 “Disability” shall mean an illness or injury that has prevented Executive from performing his or her duties (as they existed immediately prior to the illness or injury) on a full-time basis for 180 consecutive business
days. 
  
 “Good Reason” shall mean, with respect
to any Executive: (i) the assignment to Executive of any duties inconsistent in any respect with Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities immediately before
the Change in Control, or any other action by the Company that results in a significant diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Company promptly after receipt of notice thereof given by Executive; (ii) any material reduction in Executive’s Base Pay, opportunity to 

  

 S - 2 

 
earn annual bonuses or other compensation or employee benefits, other than as a result of an isolated and inadvertent action not taken in bad faith and that
is remedied by the Company promptly after receipt of notice thereof given by Executive; (iii) the Company’s requiring Executive to relocate his or her principal place of business to a place which is more than thirty-five (35) miles
from his or her previous principal place of business; or (iv) any purported termination of this Plan otherwise than as expressly permitted by this Plan. For purposes of this Plan, any good faith determination of Good Reason made by Executive
shall be conclusive. 
  
 4. Plan Benefits 
  
 For purposes of this Plan, “Plan Benefits” consist of (i) Scheduled
Severance Pay calculated as provided in Section 4A, (ii) Additional Severance calculated as provided in Section 4B and Section 4C, (iii) the Single Trigger Benefits as provided in Section 4D,
and (iv) certain additional amounts provided for in Section 7. The Company shall pay the Scheduled Severance Pay and Additional Severance to Executive in a lump sum not later than 10 days after the Effective Date of the
Executive’s Qualifying Termination. The Company shall pay the Single Trigger Benefits as provided in Section 4D upon a Change in Control and, if applicable, the additional amounts as provided in Section 7. 
  

	A.	An Executive’s “Scheduled Severance Pay” is the product of the Executive’s Base Pay times the Executive’s Applicable Tier Multiplier.

  

	B.	An Executive’s “Additional Severance” is the sum of the Executive’s Benefits Continuation Amount, calculated as provided in Section 4C below,
and the Executive’s Bonus Severance, calculated as provided in this Section 4B. 

  

	 	(i)	An Executive’s “Bonus Severance” is the product of the Executive’s Applicable Bonus times the Executive’s Applicable Tier Multiplier, together with
an additional amount equal to the Executive’s Current Pro-rata Bonus. 

  

	 	(1)	An Executive’s “Applicable Bonus” is the greatest of (A) the highest bonus amount actually paid to the Executive under the Rayonier annual incentive bonus
plan (the “Bonus Plan”) in the three year period comprised of the year of the Qualifying Termination and the two immediately preceding calendar years, (B) the Executive’s Target Bonus Award under the Bonus Plan for the
year in which the Change in Control takes place or (C) the Executive’s Target Bonus Award under the Bonus Plan in the year of Qualifying Termination. The Executive’s Applicable Bonus shall be determined without regard to any election
the Executive may have made to defer receipt of all or any portion thereof as if there had been no deferral election in effect. 

  

	 	(2)	An Executive’s “Current Pro-rata Bonus” is equal to the product of the Executive’s Applicable Bonus times a fraction the numerator of which is the number
of months or portion thereof lapsed in the then current year prior to the Qualifying Termination and the denominator of which is twelve. 

  

 S - 3 

	C.	Benefits Continuation Amounts. The Executive’s Benefits Continuation Amount is the sum of the Executive’s Retirement Savings Adjustment and Other Benefits
Adjustment. The Executive’s Retirement Savings Adjustment shall be in addition to amounts to which Executive is entitled under the Retirement Plan for Salaried Employees of Rayonier Inc., the Retirement Plan for Salaried Employees of ITT
Corporation, the Rayonier Investment and Savings Plan for Salaried Employees and the Supplemental Plans (collectively, the “Retirement Plans”), in effect on the Effective Date of the Qualifying Termination. (Capitalized terms in
this Section 4C that are not otherwise defined here or elsewhere in this Plan shall have the meaning ascribed to them in the applicable Retirement Plans.) 

  

	 	(i)	An Executive’s “Retirement Savings Adjustment” is an amount equal to the excess of (X) over (Y), where (X) is the “Equivalent Actuarial
Value” of the benefit to which Executive would have been entitled under the terms of the Retirement Plans, without regard to “vesting” thereunder, had Executive accumulated an additional 3 years of eligibility service as a fully
vested participant in the Retirement Plans and an additional 3 years of benefit service in all the Retirement Plans other than the Retirement Plan for Salaried Employees of ITT Corporation and the ITT Supplemental Plans and as if Executive were 3
years older, solely for purposes of benefit eligibility and determining the amount of reduction in benefit on account of payment commencing prior to the Executive’s normal retirement date, and by defining Executive’s “Final Average
Compensation” as equal to the greater of Executive’s Base Pay on the Effective Date of Executive’s Qualifying Termination or Executive’s Final Average Compensation as determined under the terms of the Retirement Plan for
Salaried Employees of Rayonier Inc., and (Y) is the Equivalent Actuarial Value of the amounts otherwise actually payable to Executive under the Retirement Plans. The Equivalent Actuarial Value shall be determined using the same assumptions
utilized under the Rayonier Inc. Excess Benefit Plan upon the date of payment of the Benefits Continuation Amount and based on Executive’s age on such date. 

  
 Notwithstanding the foregoing, for purposes of calculating the Retirement Savings Adjustment, Executive shall not be
required to contribute to the Rayonier Investment and Savings Plan for Salaried Employees (the “Savings Plan”) or the Rayonier Inc. Excess Savings and Deferred Compensation Plan (the “Excess Plan”) as a condition to
receiving the Retirement Savings Adjustment nor shall the Company be required to include in the Retirement Savings Adjustment amounts attributable to contributions Executive would have made under the Savings Plan or the Excess Plan had Executive
continued to participate in those plans. The Company shall only be obligated to include in the Retirement Savings Adjustment the Company contributions that would have been made under the Savings Plan and the Excess Plan had Executive continued to
participate in those plans at the level of compensation and rate of contribution in effect as of the pay date immediately preceding the Effective Date of the Qualifying Termination, without allocating any deemed earnings to said Company
contributions. 
  

 S - 4 

	 	(ii)	Other Benefits Adjustment. The “Other Benefits Adjustment” is an amount equal to the sum of the Medical Benefits Payment, the Executive Tax Services Payment
and the Outplacement Services, determined as provided in subsections (1) - (3) below. 

  

	 	(1)	An Executive’s “Medical Benefits Payment” is the product of the employer contribution component of the health and welfare plans maintained for the Executive as
of the Change in Control under the applicable employee welfare benefit plan (within the meaning of Section 3(1) of ERISA) maintained by the Company for the benefit of the Company’s employees at such date, times the Executive’s
Applicable Tier Multiplier, discounted for present value applying a 4% discount rate. 

  

	 	(2)	An Executive’s “Executive Tax Services Payment” means $10,000 in the case of a Tier II Executive and, in the case of a Tier I Executive, the amount that
otherwise would be payable for one year under the Company’s Senior Executive Tax Plan (or any successor thereto), as applicable to the Executive immediately prior to the Change in Control, together with an amount equal to any Senior Executive
Tax Plan benefits accrued but unpaid as of the Effective Date of the Qualifying Termination. 

  

	 	(3)	“Outplacement Services” means the cost of outplacement services, the scope and provider of which shall be selected by Executive in his or her sole discretion, for a
period not to extend beyond twelve (12) months after the Effective Date of Executive’s Qualifying Termination, in an amount not to exceed $30,000 in the aggregate. 

  

	D.	Single Trigger Benefits. Company shall provide to Executive the following additional benefits upon a Change in Control, and without regard to whether or not there has been,
or there subsequently occurs, a Qualifying Termination with respect to the Executive, to the extent not actually provided under an Applicable Incentive Stock Plan of the Company (collectively, the “Single Trigger Benefits”). Terms
used in this Section 4D not otherwise defined in this Plan shall have the meaning assigned in the Applicable Incentive Stock Plan. 

  

	 	(i)	Options. The Company shall cause (a) all of the options to purchase the Common Shares of the Company (“Stock Options”) granted to Executive prior to the
Change in Control by the Company to become immediately exercisable in full in accordance with the terms of the Applicable Incentive Stock Plan pursuant to which they were issued (provided that no Stock Option shall be exercisable after the
termination date of such Stock Option), and (b) Limited Stock Appreciation Rights as such term is defined in the Applicable Incentive Stock Plan to be provided in respect of such Stock Options in accordance with the Applicable Incentive Stock
Plan to the same extent and in the same amount as provided for under such Incentive Stock Plan as in effect immediately prior to the Change in Control. 

  

 S - 5 

	 	(ii)	Restricted Stock. The Company shall (a) cause Executive to immediately vest in all outstanding shares of Restricted Stock that were the subject of an Award under an
Incentive Stock Plan of the Company which Restricted Stock is held by or for the benefit of the Executive immediately prior to the Change in Control without any remaining restrictions other than those imposed by applicable securities laws,
(b) issue stock certificates in respect thereof to Executive without a restrictive legend and (c) permit Executive to tender within 60 days of the Change in Control all such Restricted Stock to the Company and in the event of such a tender
forthwith pay to the Executive the Formula Price therefore. 

  

	 	(iii)	Performance Share Awards. In the event of a Change in Control, Awards of “Performance Shares” under all “Performance Share Award Programs”
shall be settled as follows: (a) with respect to any Award for which the applicable Performance Period is more than 50% completed, the Performance Period shall be deemed to end as of the Change in Control and the Executive shall receive
the greater of (1) the Award resulting from utilizing the Formula Price in calculating total shareholder return for the Company for purposes of measuring Company performance with that of the comparison group under the applicable program,
and (2) the Award at 100% of target performance under the applicable program; and (b) with respect to any Award as to which the applicable Performance Period is not more than 50% completed, the Executive shall receive the Award at
100% of target performance under the applicable program. Performance Shares due hereunder shall be settled in cash and paid on the basis of the Formula Price. 

  

	 	(iv)	Coordination with Incentive Stock Plans. Any amounts paid hereunder shall be an offset against amounts otherwise due from the Company under the Applicable Incentive Stock
Plan in respect of the same Award covered herein. 

  
 5. Dispute
Resolution. 
  

	A.	If there has been a Change in Control and any dispute arises between Executive and the Company as to the validity, enforceability and/or interpretation of any right or benefit
afforded by this Plan, at Executive’s option such dispute shall be resolved by binding arbitration proceedings in accordance with the rules of the American Arbitration Association. The arbitrators shall presume that the rights and/or benefits
afforded by this Plan which are in dispute are valid and enforceable and that Executive is entitled to such rights and/or benefits. The Company shall be precluded from asserting that such rights and/or benefits are not valid, binding and enforceable
and shall stipulate before such arbitrators that the Company is bound by all the provisions of this Plan. The burden of overcoming by clear and convincing evidence the presumption that Executive is entitled to such rights and/or benefits shall be on
the Company. The results of any arbitration shall be conclusive on both parties and shall not be subject to judicial interference or review on any ground whatsoever, including without limitation any claim that the Company was wrongfully induced to
enter into this agreement to arbitrate such a dispute. 

  
 The Company shall pay the cost of any arbitration proceedings under this Plan. Executive shall be entitled (within two (2) business days of requesting such advance) to an advance 

  

 S - 6 

 
of the actual legal fees and expenses incurred by such Executive in connection with such proceedings and Executive shall be obligated to reimburse the
Company for such fees and expenses in connection with such arbitration proceedings only if it is finally and specifically determined by the arbitrators that Executive’s position in initiating the arbitration was frivolous and completely without
merit. 
  

	B.	In the event Executive is required to defend in any legal action or other proceeding the validity or enforceability of any right or benefit afforded by this Plan, the Company will
pay any and all actual legal fees and expenses incurred by such Executive regardless of the outcome of such action and, if requested by Executive, shall (within two business days of such request) advance such expenses to Executive. The Company shall
be precluded from asserting in any judicial or other proceeding commenced with respect to any right or benefit afforded by this Plan that such rights and benefits are not valid, binding and enforceable and shall stipulate in any such proceeding that
the Company is bound by all the provisions of this Plan. 

  

	C.	Amounts payable by the Company under this Section 5 shall in the first instance be paid by the trustee under the trust established by that certain Trust Agreement, known
as the “Legal Resources Trust” authorized by the Compensation and Management Development Committee on July 20, 2001, to the extent such amounts were previously transferred by the Company to the trustee of the Legal Resources
Trust. 

  
 6. Covenants of Executive. 
  

	A.	As a condition to the receipt of a portion of the Single Trigger Benefits if there has been no Qualifying Termination, and the other Plan Benefits if there has been a Qualifying
Termination, in either case payable in cash (such portion, the “Covenant Amount”) and in consideration thereof, Executive shall be deemed to have made and be bound by the “Change in Control Covenants” (defined below),
which at the request of the Company shall be acknowledged by Executive in a simple declarative statement “I hereby confirm that I am bound by the Change in Control Covenants” attested to in writing by the Executive. The Covenant Amount
shall be equal to so much of the identified amount payable in cash as the Company shall designate in a written notice to Executive given within thirty (30) days of the Change in Control and as may be adjusted upon a subsequent Qualifying
Termination; provided that, the Covenant Amount shall not exceed an amount equal to the Base Pay of Executive immediately before the Change in Control times the Executive’s Applicable Tier Multiplier (without regard to whether or not there is a
Qualifying Termination) and determined by the Company in good faith to be reasonable compensation for the Change in Control Covenants. The intention is that the amount be allocated so as to minimize the additional amounts payable by the Company
pursuant to Section 7. 

  

	B.	The Executive’s “Change in Control Covenants” are the Non-compete Covenants and the Confidentiality Covenants as set forth in this Section 6B.

  

	 	(i)	 Non-compete Covenants. While employed by the Company following a Change in Control, and for a period (the “Covenant Period”) equal to the
shorter of (a)

  

 S - 7 

	 	 
two years from the Change in Control or (b) one year following a Qualifying Termination, Executive covenants that Executive shall not, without the prior
authorization of the Company (which shall not be unreasonably withheld): 

  

	 	(1)	accept or maintain employment with, or act as a principal of, or advisor or consultant to, or otherwise act as an agent of, any person, firm, corporation or other entity that
competes directly with the timberland management or performance fibers businesses of the Company immediately before the Change in Control (collectively, the “Businesses”); or 

  

	 	(2)	solicit any client having a relationship with the Businesses, to terminate or reduce in a way materially adverse to the Businesses any relationship such client has with the
Businesses; or 

  

	 	(3)	solicit for employment any individual that was employed by the Businesses within sixty (60) days preceding the Change in Control and who was employed in the Businesses during
the Covenant Period and within sixty (60) days prior to such solicitation; or 

  

	 	(4)	except as permitted or compelled by law, orally or in writing, disparage, demean or deprecate the Company or any products of the Businesses. 

  

	 	(ii)	Confidentiality Covenants. While employed by the Company following the Change in Control, and for a period of three (3) years from the Change in Control, or two
(2) years following a Qualifying Termination, whichever is longer (the “Confidential Information Period”), Executive covenants that Executive shall not disclose or make available to any person or entity any “Confidential
Information” (as defined below) and shall not use or cause to be used any Confidential Information for any purpose other than fulfilling Executive’s employment obligations to the Company, without the express prior written authorization of
the Company. For this purpose, “Confidential Information” means all information about the Company relating to any of its products or services or any phase of operations, including, without limitation, business plans and strategies,
trade secrets, know-how, contracts, financial statements, pricing strategies, costs, customers and potential customers, vendors and potential vendors, marketing and distribution information, business results, software, hardware, databases,
processes, procedures, technologies, designs, concepts, ideas, and methods not generally known through legitimate means to any of its competitors with which Executive became acquainted during the term of employment by the Company. Confidential
Information also includes confidential information of third parties made available to the Company on a confidential basis, but does not include information which is generally known to the public without breach by Executive, (b) was given to
Executive by a third party without any obligation of confidentiality, or (c) was obtained or independently developed by Executive prior to or following employment by the Company without the use of information that is otherwise Confidential
Information. 

  

 S - 8 

	 	(iii)	Certain Public Company Employment. Executive will not be considered to have violated the covenant in Section 6B(i)(1) above by employment with a public company
that competes with the Company as long as no competing division of the public company reports to Employee. 

  

	C.	Remedies Limited to Equitable Relief. By accepting payment of the Covenant Amount, Executive shall be deemed (a) to have acknowledged that in the event Executive
breaches any of the Change in Control Covenants, the damages to the Company would be irreparable and that the Company shall have the right to seek injunctive and/or other equitable relief in any court of competent jurisdiction to enforce the Change
in Control Covenants and (b) to have consented to the issuance of a temporary restraining order to maintain the status quo pending the outcome of any proceeding. The foregoing shall be the exclusive remedy of the Company for a breach of the
Change in Control Covenants and under no circumstances shall the Company be entitled to seek return of all or any portion of the Covenant Amount or of any other amount payable hereunder, nor shall the Company be awarded or accept monetary damages
for any such breach. 

  
 7. Certain Additional Payments by the
Company 
  

	A.	Anything in this Plan to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any payment or distribution by the Company to or for
the benefit of any Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise, but determined without regard to any additional payments required under this Section 7,a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the Code, or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any income taxes and interest or penalties imposed with respect to any such taxes), and the Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. 

  

	B.	 Subject to the provisions of Section 7C, all determinations required to be made under this Section 7, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by such nationally recognized certified public accounting firm as may be designated by Executive (the
“Accounting Firm”), which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from Executive that there has been a Payment, or such earlier
time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity, or group effecting the Change of Control, Executive shall appoint another nationally recognized accounting
firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 7, shall be paid by the Company to Executive within five (5) days 

  

 S - 9 

	 	 
of the receipt of the Accounting Firm’s determination. Any determination by the Accounting Firm shall be binding upon the Company and Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that should have been made by the Company will not have
been made by the Company (an “Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 7C and Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive.

  

	C.	Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable but no later than ten (10) business days after Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is
requested to be paid. Executive shall not pay such claim prior to the expiration of the thirty (30)-day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies Executive in writing prior to the expiration of such period that it desires to contest such claim, Executive shall: 

  

	 	(i)	give the Company any information reasonably requested by the Company relating to such claim; 

  

	 	(ii)	take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company; 

  

	 	(iii)	cooperate with the Company in good faith in order effectively to contest such claim; and 

  

	 	(iv)	 permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto)
imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 7C, the Company shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option either direct Executive to pay the tax claimed and sue for a
refund or contest the claim in a permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more 

  

 S - 10 

	 	 
appellate courts as the Company shall determine; provided, however, that if the Company directs Executive to pay such claim and sue for a refund, the Company
shall advance the amount of such payment to Executive on an interest-free basis and shall indemnify and hold Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance and further provided that an extension of the statute of limitations relating to payment of taxes for the taxable year of Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 

  

	D.	If, after the receipt by Executive of an amount advanced by the Company pursuant to Section 7C, Executive becomes entitled to receive any refund with respect to such
claim, Executive shall (subject to the Company’s complying with the requirements of Section 7C) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable
thereto). If, after the receipt by Executive of an amount advanced by the Company pursuant to Section 7C, a determination is made that Executive shall not be entitled to any refund with respect to such claim and the Company does not
notify Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such
advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 

  
 8. Definitions 
  
 The following terms
used in this Plan have the indicated meaning: 
  
 “Additional Severance” with respect to an Executive means the sum of Executive’s Benefits Continuation Amount and Executive’s Bonus Severance as set forth in Section 4B. 
  
 “Applicable Bonus” has the definition set forth in
Section 4B(i)(1). 
  
 “Applicable Incentive
Stock Plan” means the 2004 Rayonier Incentive Stock and Management Bonus Plan, as amended, or the 1994 Rayonier Incentive Stock Plan, as amended, as the context dictates, as in effect immediately prior to a Change in Control. 
  
 “Applicable Tier Multiplier” means three (3) for Tier
I Executives and two (2) for Tier II Executives. 
  
 “Award” has the meaning set forth in the Applicable Incentive Stock Plan, as the context requires. 
  

 S - 11 

 “Base Pay” means the annual base salary rate payable to Executive at the Effective Date
of the Qualifying Termination, including compensation converted to other benefits under a flexible pay arrangement maintained by the Company or deferred pursuant to a written plan or agreement with the Company, provided that, such annual base salary
rate shall in no event be less than the highest annual base salary rate paid to Executive at any time during the twenty-four (24) month period immediately preceding the Change in Control. 
  
 “Benefits Continuation Amount” with respect to an Executive
means the amount calculated as provided in Section 4C and payable upon a Qualifying Termination. 
  
 “Bonus Plan” has the definition set forth in Section 4B(i)(1). 
  
 “Bonus Severance” with respect to an Executive means the sum of the amount calculated under
Section 4B(i)(1) and the Current Pro-rata Bonus calculated under Section 4B(i)(2), and payable upon a Qualifying Termination. 
  
 “Businesses” has the definition set forth in Section 6B(i)(1). 
  
 “Cause” has the definition provided in Section 3B. 
  
 “Change in Control” has the definition set forth in the
Retirement Plan for Salaried Employees of Rayonier Inc. as amended October 19, 2001, and as the same may be hereafter amended from time to time prior to the occurrence of a Change in Control. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time. 
  
 “Committee” means
the Compensation and Management Development Committee of the Board of Directors of the Company. 
  
 “Company” means Rayonier Inc. and any successor to, or assignee of, the business or assets thereof that becomes bound by this Plan as
provided in Section 10. 
  
 “Confidentiality
Covenants” with respect to an Executive are the covenants set forth in Section 6B (ii) and for which purpose “Confidential Information” has the definition set forth in Section 6 B(ii). 
  
 “Covenant Amount” with respect to an Executive is the cash
portion of Plan Benefits designated as provided in Section 6A. 
  
 “Covenant Period” is the period determined under Section 6B(i) during which an Executive is bound by the Non-compete Covenants. 
  
 “Current Pro-rata Bonus” has the definition set forth in
Section 4B(i)(2). 
  
 “Disability”
has the definition provided in Section 3B. 
  
 “Effective Date of the Qualifying Termination” is the date the Company selects as the Executive’s last day of active full-time employment. 
  
 “Equivalent Actuarial Value” has the definition applicable under the Retirement Plans. 
  

 S - 12 

 “Executive Tax Services Payment” means the amount calculated in accordance with
Section 4C(ii)(2). 
  
 “Excess Plan”
has the definition provided in Section 4C(i). 
  
 “Executive” means a person identified on Appendix A, as amended from time to time by the Committee prior to a Change in Control. 
  
 “Final Average Compensation” has the meaning applicable under the Retirement Plans. 
  
 “Formula Price” has the meaning set forth in the Applicable
Incentive Stock Plan. 
  
 “Good Reason” has the
definition provided in Section 3B. 
  
 “Gross-Up Payment” and the associated terms “Payment,” “Excise Tax,” “Accounting Firm” and “Underpayment” have the definitions set forth in
Section 7. 
  
 “Legal Resources
Trust” has the definition provided in Section 5C. 
  
 “Medical Benefits Payment” means the amount calculated in accordance with Section 4C(ii)(1). 
  
 “Non-compete Covenants” with respect to an Executive are the covenants set forth in Section 6(B)(i). 
  
 “Other Benefits Adjustment” has the definition in
Section 4C(ii). 
  
 “Outplacement
Services” has the definition set forth in Section 4C(ii)(3). 
  
 “Performance Shares” and “Performance Share Award Programs” mean the right to receive contingent performance shares or performance shares (or other Awards) to be made at the end of a
performance period under programs adopted by the Committee under Section 6 of the Applicable Incentive Stock Plan under which such program was authorized, upon attainment of the comparative performance measures provided for in such program.

  
 “Plan Benefits” has the definition provided
in Section 4. 
  
 “Plan Change” has
the definition set forth in Section 13 
  
 “Plan” means this Executive Severance Pay Plan effective as provided in Section 17. 
  
 “Qualifying Termination” has the definition provided in Section 3A. 
  
 “Retirement Plans” has the definition provided in
Section 4C. 
  
 “Retirement Savings
Adjustment” with respect to an Executive means the amount calculated in accordance with Section 4C(i), for which purpose “normal retirement date” means the first of the month that coincides with or follows
Executive’s 65th birthday. 
  
 “Savings
Plan” has the definition set forth in Section 4C(i). 
  

 S - 13 

 “Scheduled Severance Pay” with respect to an Executive means the amount calculated as
provided in Section 4A and payable upon a Qualifying Termination. 
  
 “Separation Benefits” as provided in Section 3A means with respect to an Executive means the sum of the Executive’s Scheduled Severance Pay and Additional Severance payable in respect
of a Qualifying Termination. 
  
 “Severance
Trust” has the definition provided in Section 11. 
  
 “Single Trigger Benefits” with respect to an Executive means the Plan Benefits payable as provided in Section 4D upon a Change in Control without regard to whether or not the Executive is terminated, for which
purpose “Performance Period”, “Limited Stock Appreciation Rights”, “Stock Options” and “Restricted Stock” have the meanings set forth in the Applicable Incentive Stock Plan and the programs thereunder.

  
 “Supplemental Plans” means any excess
benefit plan, within the meaning of Section 3(36) of the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder (“ERISA”), or any supplemental executive retirement plan or other employee pension
benefit plan, within the meaning of Section 3(2) of ERISA, not intended to be qualified under Section 401 (a) of the Code, maintained by the Company or by ITT Corporation, subject to the terms and conditions of such plans, in which
the Executive is entitled to benefits by virtue of his employment with the Company or prior employment by ITT Corporation. 
  
 “Target Bonus Award” means the standard bonus target percentages of base salaries, as defined under the Bonus Plan for the respective
executive salary grades as determined pursuant to Company base salary compensation schedules in effect for eligible executives at a 100 percent performance factor as of December 31 of the year in which the Change in Control takes place.

  
 “Tier I” or “Tier II” means
the designation assigned to an Executive on Appendix A as adopted and in effect immediately prior to a Change in Control. 
  
 9. Release 
  
 No Separation Benefits will be provided under this Plan unless Executive executes and delivers to the Company a mutual release, satisfactory to the Company, in which Executive discharges and releases the Company and
the Company’s directors, officers, employees, and employee benefit plans from all claims (other than for benefits, to which Executive is entitled under this Plan or any Company employee benefit plan) arising out of Executive’s employment
or termination of employment and the Company discharges and releases Executive from any and all claims arising out of Executive’s employment or termination of employment with the Company. 
  
 10. Successor to Company 
  
 This Plan shall bind any successor of the Company, its assets, or its businesses (whether
direct or indirect, by purchase, merger, consolidation, or otherwise), in the same manner and to the same extent that the Company would be obligated under this Plan if no succession had taken place. 
  

 S - 14 

 In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound
by this Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s obligations under this Plan, in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place. 
  
 11. Administration of
Plan/Coordination with Severance Trust 
  
 The Company is the Named Fiduciary
for the Plan under ERISA. The Committee is the Plan Administrator, which shall have the exclusive right to interpret this Plan, adopt any rules and regulations for carrying out this Plan as may be appropriate and, except as otherwise provided in
this Plan, decide any and all matters arising under this Plan. All interpretations and decisions by the Committee shall be final, conclusive and binding on all parties affected thereby. 
  
 Amounts payable by the Company under this Plan (except under Section 5) may be made by direction of the Company to the trustee
under the trust established by that certain Trust Agreement for the Rayonier Inc. Supplemental Senior Executive Pay Plan and for the Change in Control Agreement for W. Lee Nutter authorized by the Compensation and Management Development Committee on
July 20, 2001 (the “Severance Trust”), to the extent such amounts were previously transferred by the Company to the trustee of the Severance Trust, but shall be deemed to have been paid only upon receipt by the Executive.

  
 12. Claims Procedure 
  
 If an employee or former employee makes a written request alleging a right to receive
benefits under this Plan or alleging a right to receive an adjustment in benefits being paid under the Plan, the Company shall treat it as a claim for benefit. All claims for benefit under the Plan shall be sent to the Company’s Senior Vice
President, Administration, or such other officer as may be designated by the Committee, and must be received within thirty (30) days after termination of employment. If the Company determines that any individual who has claimed a right to
receive benefits, or different benefits, under the Plan is not entitled to receive all or any part of the benefits claimed, it will inform the claimant in writing of its determination and the reasons therefor in terms calculated to be understood by
the claimant. The notice will be sent within ninety (90) days of the claim unless the Company determines additional time, not exceeding ninety (90) days, is needed. The notice shall make specific reference to the pertinent Plan provisions
on which the denial is based, and describe any additional material or information as necessary. Such notice shall, in addition, inform the claimant what procedure the claimant should follow to take advantage of the review procedures set forth below
in the event the claimant desires to contest the denial of the claim. The claimant may within ninety (90) days thereafter submit in writing to the Company a notice that the claimant contests the denial of his or her claim by the Company and
desires a further review. The Company shall within sixty (60) days thereafter review the claim and authorize the claimant to appear personally and review pertinent documents and submit issues and comments relating to the claim to the persons
responsible for making the determination on behalf of the Company. The Company will render its final decision with specific reasons therefor in writing and will transmit it to the claimant within sixty (60) days of the written request for
review, unless the Company determines additional time, not exceeding sixty (60) days, is needed, and so notifies the employee. If the Company fails to respond to a claim filed in accordance with the foregoing within sixty (60) days or any
such extended period, the Company shall be deemed to have denied the claim. 
  

 S - 15 

 13. Termination or Amendment 
  
 The Committee or the Company’s Board of Directors may amend or terminate this Plan (a “Plan Change”) at any time, except that
no such Plan Change may reduce or adversely affect Separation Benefits for any Executive who has a Qualifying Termination within two years of the effective date of such Plan Change provided that Executive was a Covered Employee under this Plan on
the date of the Plan Change; provided that (a) a change in Appendix A prior to a Change in Control shall not be deemed to be an Plan Change and (b) an Executive by accepting any benefit under this Plan that was introduced prior to a
Change in Control and not available prior to the Plan Change, shall be deemed to have waived the two-year limitation. Notwithstanding the foregoing, for two years after the occurrence of a Change in Control event, this Plan may not be terminated or
amended until after all Executives who become entitled to any payments hereunder shall have received such payments in full. Any extension, amendment, or termination of this Plan in accordance with the foregoing shall be made in accordance with the
Company’s charter and bylaws and applicable law, and shall be evidenced by a written instrument signed by a duly authorized officer of the Company, certifying that such action has been taken. 
  
 14. Plan Supersedes Prior Plans 
  
 This Plan supersedes and replaces all prior severance policies, plans, or practices
maintained by the Company with respect to all Covered Employees other than individualized written agreements executed by the Company and Executive. 
  
 15. Unfunded Plan Status 
  
 This Plan is intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation for a select group of management or highly
compensated employees, within the meaning of Section 401 of ERISA. All payments pursuant to the Plan shall be made from the general funds of the Company and no special or separate fund shall be established or other segregation of assets made to
assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company as a result of participating in the Plan. Notwithstanding the foregoing, the Company may but shall not
be obligated to create one or more grantor trusts, such as the Legal Resources Trust and the Severance Trust, the assets of which are subject to the claims of the Company’s creditors, to assist it in accumulating funds to pay its obligations
under the Plan. 
  
 16. Miscellaneous 
  
 Except as provided in this Plan, Executive shall not be
entitled to any notice of termination or pay in lieu thereof. 
  
 In cases where
Severance Pay is provided under this Plan, pay in lieu of any unused current year vacation entitlement will be paid to Executive in a lump sum. 
  

 S - 16 

 If any amount payable under or in respect of this Plan is determined to be deferred compensation subject to
Section 409A of the Code and the regulations promulgated thereunder, payment of such amount shall be deferred to the earliest time when such payment can be made without penalty. 
  
 This Plan is not a contract of employment, does not guarantee any Executive employment for any specified period and does not limit the right
of the Company to terminate the employment of any Executive at any time. 
  
 The
section headings contained in this Plan are included solely for convenience of reference and shall not in any way affect the meaning of any provision of this Plan. 
  
 If, for any reason, any one or more of the provisions or part of a provision contained in this Plan shall be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Plan not held so invalid, illegal or unenforceable, and each other provision or part of a provision
shall to the full extent consistent with law remain in full force and effect. 
  
 17. Adoption Date and Amendment 
  
 This Plan was first adopted
effective March 1, 1994. On May 16, 1997, changes to the Plan were approved effective as of June 1, 1997. Subsequently on July 18, 1997, additional changes to the Plan were approved effective retroactive to June 1, 1997.

  
 On September 2, 2005, this amended and restated Plan was approved and
adopted and renamed the Rayonier Inc. Executive Severance Pay Plan, effective as of that date. 
  

 S - 17

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