Document:

IEC-EX10.5_2014.3.28-10Q

Exhibit 10.5

SALARY CONTINUATION AND NON-COMPETITION AGREEMENT
THIS SALARY CONTINUATION AND NON-COMPETITION AGREEMENT (the “Agreement”) dated April 30, 2014 and effective as of January 29, 2014 is made and entered into by and between IEC ELECTRONICS CORP. (separately and together with its subsidiaries, “IEC”) and BRETT E. MANCINI (“Executive”).
WITNESSETH:
WHEREAS, Executive has been an employee of IEC since January 22, 2008 and currently serves as Vice President, Business Development and Engineering Solutions; and
WHEREAS, the Board of Directors (“Board”) of IEC has elected Executive as a corporate officer effective on January 29, 2014; and
WHEREAS, in recognition of such promotion, the Board awarded Executive 30,000 shares of restricted stock effective on January 29, 2014; and
WHEREAS, IEC has determined that it is in the best interests of IEC and its shareholders to provide Executive with certain salary continuation payments upon the circumstances described below in order to provide Executive with enhanced financial security to assure the continued loyalty, cooperation and services of Executive; and
WHEREAS, Executive’s eligibility for awards of restricted shares and future incentives, and the payment of salary continuation to Executive under certain circumstances, are contingent on Executive’s execution of this Agreement and Executive’s compliance with the covenants set forth in Section 3 of this Agreement; and
WHEREAS, Executive acknowledges the receipt of such good and valuable consideration for Executive’s compliance with the covenants set forth in Section 3 of this Agreement.
NOW, THEREFORE, in consideration of the mutual promises, benefits and covenants herein contained, the parties agree as follows:
1.Employment at Will.
IEC and Executive acknowledge and agree that Executive’s continued employment is “at will” and that their employment relationship may be terminated by either party at any time, for any reason, with or without cause.
Nothing contained in this Agreement shall: (a) confer on Executive any right to continue in the employ of IEC; (b) constitute any contract or agreement of employment; or (c) interfere in any way with the at-will nature of Executive’s employment with IEC.
2.    Salary Continuation.
2.1.    If Executive’s employment (i) is terminated by IEC without “Cause” (as defined below) at any time prior to a Change in Control; (ii) is terminated by Executive for “Good Reason” (as defined below) at any time prior to a Change in Control, or (iii) is terminated by IEC except for Cause or by Executive for any reason within the twelve months immediately following a Change in Control (as defined below), IEC agrees to provide Executive with severance in the form of salary continuation for a period of twelve months at the rate in effect immediately prior to the date of termination.  All withholding taxes and other deductions that IEC is required by law to make from payments will be made from such salary continuation payments.
2.2.    Notwithstanding Section 2.1, Executive shall not be entitled to receive salary continuation payments (a) if Executive voluntarily terminates Executive’s employment with IEC except for Good Reason at any time prior to a Change in Control or for any reason within the twelve months following a Change in Control; (b) if 

Executive’s employment terminates by reason of Executive’s death or Disability; or (c) if Executive is terminated by IEC for Cause at any time or is terminated for any reason more than twelve months after a Change in Control.
2.3.    Executive acknowledges and understands that IEC’s obligation to make the salary continuation payments in Section 2.1 is conditioned upon each of the following:  (i) Executive’s continued compliance with Executive’s obligations under Section 3 of this Agreement; and (ii) Executive’s execution, delivery and non-revocation of a valid and enforceable general release of claims, but which excepts out claims arising under the Indemnity Agreement, (the “Release”) in form and substance satisfactory to IEC, which must be delivered to IEC within ten (10) business days after termination.  In the event that Executive breaches any of the covenants set forth in Section 3 of this Agreement, Executive will immediately return to IEC any portion of the salary continuation payments that have been paid to Executive pursuant to this Section.  Subject to Section 2.4, the salary continuation payments will commence to be paid to Executive as soon as practicable following the effectiveness of the Release.
2.4.    Section 409A Specified Employee.  If Executive is a “specified employee” for purposes of Section 409A of the United States Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder, to the extent required to comply with Section 409A of the Code, any salary continuation payments required to be made pursuant to Section 2.1 which are subject to Section 409A of the Code shall not commence until one day after the day which is six (6) months from the date of termination, with the first payment equaling six (6) months of salary continuation.
2.5.    Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:
2.5.1    “Cause” shall mean, as shown by clear and convincing evidence, any of the following: Executive’s (i) substantial and material failure, or refusal to perform Executive’s assigned duties which is not cured within thirty (30) days of Executive receiving written notice of such failure, provided that that a failure to meet the business plan of IEC alone, or good faith errors in judgment made by the Executive shall not constitute grounds for termination of the Executive for Cause; (ii) willful misconduct or gross negligence in the performance of Executive’s employment duties; (iii) continuing failure or refusal to observe material policies generally applicable to officers or employees of IEC unless, if such failure is capable of being cured it is cured within thirty (30) days of Executive receiving written notice of such failure; (iv) failure to cooperate with any internal investigation of IEC; (v) commission of any act of fraud, theft, embezzlement or financial dishonesty with respect to IEC; (vi) conviction of any felony, or an indictment for a crime which is of such impropriety or magnitude that it substantially adversely affects the business or  the reputation of IEC; (vii) material violation of the provisions of this Agreement unless such violation is capable of being cured and is cured within thirty (30) days of Executive receiving written notice of such violation; or (viii) refusal to follow any legal and proper directive of the Chief Executive Officer which is not cured within thirty (30) days of Executive receiving written notice.
2.5.2    “Change in Control” shall mean (a) the date of the acquisition by any “person” (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), excluding IEC or any of its subsidiaries, of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of 25% or more of the combined voting power of IEC’s then outstanding voting securities (the “Voting Securities”); or (b) the date the individuals who constitute the board as of the effective date of this Agreement (the “Incumbent Board”) cease for any reason to constitute at least two-thirds of the members of the board, provided that any person becoming a director subsequent to the effective date of this Agreement whose election, or nomination for election by IEC’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than any individual whose nomination for election to the board was not endorsed by IEC’s management prior to, or at the time of, such individual’s initial nomination for election ) shall be, for the purposes of this Agreement, considered as though such person were a member of the Incumbent Board; or (c) the date of consummation of a merger, consolidation, recapitalization, reorganization, sale or disposition of all or a substantial portion of IEC’s assets or the issuance of shares of stock of IEC in connection with the acquisition of the stock or assets of another entity; provided, however, that a Change in Control shall not occur under this clause (c) if consummation of the transaction would result in at least 51% of the total voting power represented by the Voting Securities of IEC (or, if not IEC, the entity that succeeds to all or substantially all of IEC’s business) outstanding immediately after such 

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transaction being beneficially owned (within the meaning of Rule 13d-3 promulgated pursuant to the Exchange Act) by at least 51% of the holders of outstanding Voting Securities of IEC immediately prior to the transaction, with the voting power of each such continuing holder relative to other such continuing holders not substantially altered in the transaction; or (d) the date IEC files a report or proxy statement with the Securities and Exchange Commission pursuant to the Exchange Act disclosing in response to Form 8-K or Schedule 14A (or any successor schedule, form or report of item therein) that a change in control of IEC has or may have occurred, or will or may occur in the future, pursuant to any then existing contract or transaction.
Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any person acquires beneficial ownership of more than 25% of Voting Securities as a result of the acquisition of Voting Securities by IEC which reduces the number of Voting Securities outstanding; provided that if after such acquisition by IEC such person becomes the beneficial owner of additional Voting Securities that increases the percentage of outstanding Voting Securities beneficially owned by such person, a Change in Control shall then occur.
2.5.3    “Disability” shall mean Executive is entitled to receive long-term disability benefits under the long-term disability plan of IEC in which Executive participates, or, if there is no such plan, Executive’s inability, due to physical or mental ill health, to perform the essential functions of Executive’s job, with or without a reasonable accommodation, for 180 days during any 365-day period, irrespective of whether such days are consecutive.
2.5.4    “Good Reason” shall mean (i) material and adverse change in Executive’s duties or responsibilities as shown by clear and convincing evidence, (ii) reduction in Executive’s base salary, or (iii) relocation of Executive’s principal place of employment by more than fifty (50) miles.
2.5.5    “Indemnity Agreement” shall mean that certain Indemnity Agreement dated as of February 20, 2014 by and between IEC and Executive, as may be amended from time to time.
3.    Restrictive Covenants.
The parties acknowledge that references to IEC in this Section 3 shall be deemed to be references to IEC and its affiliates and subsidiaries.
3.1.    Unauthorized Disclosure.  Executive agrees and understands that in Executive’s capacity as an executive officer of IEC, Executive has been and will be exposed to and has and will receive information relating to the confidential affairs of IEC, including, without limitation, technical information, intellectual property, business and marketing plans, strategies, customer information, software, other information concerning the products, promotions, development, financing, expansion plans, business policies and practices of IEC and other forms of information considered by IEC to be confidential or in the nature of trade secrets (including, without limitation, ideas, research and development, know-how, formulas, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information and business and marketing plans and proposals) (collectively, the “Confidential Information”).  Executive agrees that at all times during Executive’s employment with IEC and thereafter, (i) Executive shall not disclose such Confidential Information, either directly or indirectly, to any individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof (each a “Person”) other than in connection with Executive’s employment with IEC without IEC’s prior written consent and shall not use or attempt to use any such information in any manner other than in connection with Executive’s employment with IEC, unless required by law to disclose such information, in which case Executive shall provide IEC with written notice of such requirement as far in advance of such anticipated disclosure as possible; (ii) Executive shall not delete, encrypt, password, protect or retain electronic files containing Confidential Information, or IEC materials (including emails and attachments) and (iii) Executive shall not take any other action that impairs, restricts, limits or impedes IEC’s ability to have full access and to use its Confidential Information.  This confidentiality covenant has no temporal, geographical or territorial restriction.  Upon termination of Executive’s employment with IEC, Executive shall promptly supply to IEC all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data and any other tangible product or document which has been produced by, received by or otherwise submitted to Executive during Executive’s employment with IEC, and any copies thereof in Executive’s (or capable of being reduced 

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to Executive’s) possession.  At the end of Executive’s employment, Executive also agrees not to make IEC materials and data difficult to access.  Specifically, Executive agrees (i) not to delete or alter any IEC documents, or destroy or throw away materials; (ii) not to password protect or encrypt or reformat IEC documents; (iii) not to download IEC information or forward electronic files from the IEC computer systems to any other location; (iv) not access the IEC computer system, email system or voicemail system, including by remote access; and (v) not to solicit the assistance of any IEC employee or contractor to assist Executive in connection with such actions.
3.2.    Non-Competition.  By and in consideration of IEC’s entering into this Agreement and in further consideration of (i) Executive’s promotion to Vice President, Business Development and Engineering Solutions of IEC; (ii) Executive’s eligibility for awards of restricted shares and future incentives; (iii) IEC’s agreement to pay salary continuation as set forth in Section 2; and (iv) Executive’s exposure to the Confidential Information of IEC, Executive agrees that Executive shall not, during Executive’s continuation of employment with IEC and for a period of fifteen (15) months thereafter (the “Restriction Period”), directly or indirectly, perform similar employment functions as a vice-president of business development or similar executive role in any of the military, aerospace, medical or industrial sectors for or on behalf of any Restricted Enterprise (as defined below); provided that in no event shall ownership of one percent (1%) or less of the outstanding securities of any class of any issuer whose securities are registered under the Securities Exchange Act of 1934, as amended, standing alone, be prohibited by this Section 3.2, so long as Executive does not have, or exercise, any rights to manage or operate the business of such issuer other than rights as a stockholder thereof.  For purposes of this paragraph, “Restricted Enterprise” shall mean any Person that (A) has sales revenue of $100 million or more, (B) is actively engaged in any geographic area in any business which is either (i) in competition with the business of IEC; or (ii) proposed to be conducted by IEC in IEC’s business plan as in effect at that time, and (C) is doing business with any Person who was (i) a customer or client of IEC, (ii) a prospective customer or client of IEC with whom IEC is negotiating or preparing a proposal for products or services, or (iii) on IEC’s customer target list, in each case during the time Executive was employed by IEC.  During the Restriction Period, upon request of IEC, Executive shall notify IEC of Executive’s then current employment status.
3.3.    Non-Solicitation of Employees.  Executive acknowledges that the relationship between IEC and its employees are valuable assets of IEC.  During Executive’s employment and during the Restriction Period, Executive agrees that Executive will not directly or indirectly contact, induce or solicit (or assist any Person to contact, induce or solicit) for employment any person who is, or within twelve (12) months prior to the date of such solicitation was, an employee of IEC.
3.4.    Non-Solicitation of IEC Customers.   Executive acknowledges that the relationship between IEC and its customers are valuable assets of IEC and that IEC has a legitimate interest in protecting the customer base it has created and maintained at its financial expense.  During Executive’s employment, and during the Restriction Period (other than in connection with carrying out Executive’s responsibilities for IEC), Executive agrees that Executive will not directly or indirectly contact, induce or solicit (or assist any Person to contact, induce or solicit) any customer or client of IEC (or prospective customer or client of IEC with whom IEC is negotiating or preparing a proposal for products or services) to terminate its business relationship or otherwise cease doing business in whole or in part with IEC, or directly or indirectly interfere with (or assist any Person to interfere with) any material relationship between IEC and any of its or their customers or clients so as to cause harm to IEC.
3.5.    Extension of Restriction Period.  Executive acknowledges and agrees that the Restriction Period shall be tolled for any period during which Executive is in breach of any of Sections 3.2, 3.3 or 3.4 hereof.
3.6.    Proprietary Rights.  Executive shall disclose promptly to IEC any and all inventions, discoveries, and improvements (whether or not patentable or registrable under copyright or similar statutes), and all patentable or copyrightable works, initiated, conceived, discovered, reduced to practice, or made by him, either alone or in conjunction with others, during Executive’s employment with IEC and related to the business or activities of IEC (the “Developments”).  Except to the extent any rights in any Developments constitute a work made for hire under the U.S. Copyright Act, 17 U.S.C. § 101 et seq. that are owned ab initio by IEC, Executive assigns all of Executive’s right, title and interest in all Developments (including all intellectual property rights therein) to IEC or its nominee without further compensation, including all rights or benefits therefor, including without limitation the right to sue and recover for past and future infringement.  Executive acknowledges that any rights in any Developments constituting a work 

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made for hire under the U.S. Copyright Act, 17 U.S.C § 101 et seq. are owned upon creation by IEC as Executive’s employer.  Whenever requested to do so by IEC, Executive shall execute any and all applications, assignments or other instruments which IEC shall deem necessary to apply for and obtain trademarks, patents or copyrights of the United States or any foreign country or otherwise protect the interests of IEC therein.  These obligations shall continue beyond the end of Executive’s employment with IEC with respect to inventions, discoveries, improvements or copyrightable works initiated, conceived or made by Executive while employed by IEC, and shall be binding upon Executive’s employers, assigns, executors, administrators and other legal representatives.  In connection with Executive’s execution of this Agreement, Executive has informed IEC in writing of any interest in any inventions or intellectual property rights that Executive holds as of the date hereof as set forth on Exhibit A hereto (the “Existing Inventions”).  Notwithstanding anything to the contrary herein, the Developments shall not include any Existing Inventions.  If IEC is unable for any reason, after reasonable effort, to obtain Executive’s signature on any document needed in connection with the actions described in this Section 3.6, Executive hereby irrevocably designates and appoints IEC and its duly authorized officers and agents as Executive’s agent and attorney in fact to act for and on Executive’s behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of this Section 3.6 with the same legal force and effect as if executed by Executive.
3.7.    Remedies.  Executive agrees that any breach of the terms of this Section 3 would result in irreparable injury and damage to IEC for which IEC would have no adequate remedy at law; Executive therefore also agrees that in the event of said breach or any threat of breach, IEC shall be entitled to an immediate injunction and restraining order to prevent such breach and/or threatened breach and/or continued breach by Executive and/or any and all Persons acting for and/or with Executive, without having to prove damages, in addition to any other remedies to which IEC may be entitled at law or in equity, including, without limitation, the obligation of Executive to return any salary continuation payments made by IEC to IEC.  The terms of this paragraph shall not prevent IEC from pursuing any other available remedies for any breach or threatened breach hereof, including, without limitation, the recovery of damages from Executive.  Executive and IEC further agree that the provisions of the covenants contained in this Section 3 are reasonable and necessary to protect the business of IEC because of Executive’s access to Confidential Information and Executive’s material participation in the operation of such business.
3.8.    Litigation Support.  Executive agrees to make himself reasonably available in the event IEC requests that he participate in any litigation involving IEC.  Executive shall be entitled to full reimbursement of all reasonable expenses incurred during such litigation support, upon presentation of appropriate documentation to IEC in accordance with IEC’s standard reimbursement policies and procedures.
4.    Miscellaneous.
4.1.    Amendments and Waivers.  This Agreement and any of the provisions hereof may be amended, waived (either generally or in a particular instance and either retroactively or prospectively), modified or supplemented, in whole or in part, only by written agreement signed by the parties hereto; provided that, the observance of any provision of this Agreement may be waived in writing by the party that will lose the benefit of such provision as a result of such waiver.  The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach, except as otherwise explicitly provided for in such waiver.  Except as otherwise expressly provided herein, no failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
4.2.    Notices.  Unless otherwise provided herein, all notices, requests, demands, claims and other communications provided for under the terms of this Agreement shall be in writing.  Any notice, request, demand, claim or other communication hereunder shall be sent by (i) personal delivery (including receipted courier service) or overnight delivery service; (ii) facsimile during normal business hours, with confirmation of receipt, to the number indicated, (iii) reputable commercial overnight delivery service courier; or (iv) registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below:

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If to IEC:        IEC Electronics Corp.
105 North Street
Newark, New York 14513
Attention:  W. Barry Gilbert
Chairman of the Board and CEO
 
		
	If to Executive:
	To Executive’s home address as set forth in IEC's personnel records

All such notices, requests, consents and other communications shall be deemed to have been given when received.  Either party may change its facsimile number or its address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner then set forth.
4.3.    Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights and obligations of the parties hereto shall be governed by, the laws of the State of New York, without giving effect to the conflicts of law principles thereof.
4.4.    Severability.  Whenever possible, each provision or portion of any provision of this Agreement, including those contained in Section 3 hereof, will be interpreted in such manner as to be effective and valid under applicable law but the invalidity or unenforceability of any provision or portion of any provision of this Agreement in any jurisdiction shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that provision or portion of any provision, in any other jurisdiction.
4.5.    Entire Agreement.  This Agreement constitutes the entire agreement between the parties hereto, and supersedes all prior representations, agreements and understandings (including any prior course of dealings), both written and oral, between the parties hereto with respect to the subject matter hereof.
4.6.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute one and the same instrument.
4.7.    Binding Effect.  This Agreement shall inure to the benefit of, and be binding on, the successors of each of the parties, including, without limitation, Executive’s heirs and the personal representatives of Executive’s estate and any successor to all or substantially all of the business and/or assets of IEC.
4.8.    Section 409A Compliance.  This Agreement is intended to comply with Section 409A of the Code (to the extent applicable) and, to the extent it would not adversely impact IEC, IEC agrees to interpret, apply and administer this Agreement in the least restrictive manner necessary to comply with such requirements and without resulting in any diminution in the value of payment or benefits to Executive.
4.9.    Advice of Counsel.  Executive acknowledges that Executive has had the opportunity to fully review this Agreement, and if Executive so chooses, to consult with counsel, and is fully aware of Executive’s rights and obligations under this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first written above.

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IEC ELECTRONICS CORP.

By:    /s/ W. Barry Gilbert                           /s/ Brett E. Mancini          
W. Barry Gilbert                    Brett E. Mancini
Chairman of the Board
and Chief Executive Officer

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EXHIBIT A 
EXISTING INVENTIONS
None10.1 RYN-AmendmentNo1-Revolver-Execution

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 1
AMENDMENT NO. 1 TO THE AMENDED AND RESTATED FIVE-YEAR REVOLVING CREDIT AGREEMENT, dated as of May 6, 2014 (this “Amendment”), among RAYONIER INC., a North Carolina corporation (“Rayonier”), RAYONIER TRS HOLDINGS INC., a Delaware corporation (“TRS”) and RAYONIER OPERATING COMPANY LLC, a Delaware limited liability company (“ROC”; each of Rayonier, TRS and ROC being referred to herein individually as a “Borrower”, and collectively as the “Borrowers”), the banks, financial institutions and other institutional lenders party hereto and CREDIT SUISSE AG, as administrative agent (in such capacity, together with its successors and assign, the “Administrative Agent”). Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Credit Agreement referred to below.

PRELIMINARY STATEMENTS:
(1)The Borrowers, the Administrative Agent and the lenders party thereto from time to time are parties to that certain Amended and Restated Five-Year Revolving Credit Agreement, dated as of October 11, 2012 (as the same may have been amended, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”). 
(2)Rayonier has requested, and the Administrative Agent and the Lenders party hereto have agreed on the terms and conditions set forth herein, to amend the Credit Agreement to (i) provide for the reduction in the aggregate amount of Commitments thereunder to $200,000,000, and (ii)  to permit the incurrence of Debt in order to consummate one transaction or a series of transactions pursuant to which the Performance Fibers segment of Rayonier’s business shall be separated from Rayonier’s other businesses, operations and activities.
NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
SECTION 1.Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows effective on the Amendment No. 1 Effective Date (as defined below):
(a)     Section 1.01 of the Credit Agreement is amended by inserting the following new definitions in the appropriate alphabetical order:
“Commitment Reduction Date” means the date that is five (5) Business Days after the SpinCo Distribution Date.

“Effective Time” means 11:59 p.m., New York City time, on the SpinCo Distribution Date.

“Group Subsidiary” means, with respect to any Person, any corporation, limited liability company, joint venture or partnership of which such Person (a) beneficially owns, either directly or indirectly, more than fifty percent (50%) of (i) the total combined voting power of all classes of voting securities, (ii) the total 

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement
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combined equity interests or (iii) the capital or profit interests, in the case of a partnership, or (b) otherwise has the power to vote, either directly or indirectly, sufficient securities to elect a majority of the board of directors or similar governing body.

“Products” means Rayonier A.M. Products, LLC, a Delaware limited liability company, and its successors and assigns.

“Rayonier Business” means all businesses, operations and activities (whether or not such businesses, operations or activities are or have been terminated, divested or discontinued) conducted at any time prior to the Effective Time by Rayonier or SpinCo or any of their respective Group Subsidiaries, other than the SpinCo Business.

“Record Date” means the close of business on the date to be determined by the board of directors of Rayonier as the record date for determining holders of common shares of Rayonier entitled to receive shares of common stock of SpinCo pursuant to the SpinCo Distribution.

“Revolver Commitment Reduction” means the permanent pro rata reduction of the respective Commitment of each of the Lenders such that the aggregate amount of the Commitments of all Lenders after giving effect to such reduction does not exceed $200,000,000 on the Commitment Reduction Date.

“Revolver Prepayment” means the prepayment of the amount of Revolving Credit Advances, if any, in excess of $200,000,000 on the Commitment Reduction Date, together with the payment of accrued interest to the date of such prepayment on the principal amount (if any) prepaid.

“Separation” means the separation of the SpinCo Business from the Rayonier Business.

“SpinCo” means Rayonier Advanced Materials Inc., a Delaware corporation, and its successors and assigns.  

“SpinCo Business” means (a) the business, operations and activities of the Performance Fibers segment of Rayonier conducted at any time prior to the Effective Time by Rayonier, SpinCo or any of their current or former respective Group Subsidiaries and (b) any terminated, divested or discontinued businesses, operations and activities that, at the time of termination, divestiture or discontinuation, primarily related to the business, operations or activities described in clause (a) as then conducted.

“SpinCo Distribution” means the distribution, on a pro rata basis, of all the outstanding common shares of SpinCo owned by Rayonier to holders of common shares of Rayonier on the Record Date.

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement
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“SpinCo Distribution Date” means the date of the consummation of the SpinCo Distribution, which shall be determined by the board of directors of Rayonier in its sole and absolute discretion.
 
“SpinCo Transaction Debt” means Debt incurred by SpinCo, Products and/or one or more of their respective Group Subsidiaries, in each case, in contemplation of, and in connection with, the proposed Separation and SpinCo Distribution, in an aggregate principal amount not to exceed $1,025,000,000,  and any Guarantees issued by SpinCo, Products or any of their respective Group Subsidiaries in respect of all or any portion of such Debt, so long as such Debt is non-recourse to Rayonier (other than with respect to any guarantee issued by Rayonier in respect of all or any portion of such Debt which guarantee shall terminate and be released no later than the SpinCo Distribution Date) and its Group Subsidiaries (other than SpinCo, Products and their respective Group Subsidiaries) and to the assets of the Rayonier Business (other than on the terms and for the period of time described above).

(b)    The following definitions in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety as follows:
““Cash Collateralize” means, to deposit in a Controlled Account or to pledge and deposit with or deliver to the Administrative Agent, for the benefit of one or more of the Issuing Banks and/or Lenders, as collateral for LC Obligations or obligations of Lenders to fund participations in respect of LC Obligations, cash or deposit account balances or, if the Administrative Agent and each applicable Issuing Bank shall agree in their discretion (not to be unreasonably withheld, conditioned or delayed), other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and each applicable Issuing Bank.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support. 
“LC Commitment” of any Issuing Bank means, as of any date prior to the Commitment Reduction Date, the amount mutually agreed between such Issuing Bank and Rayonier, not to exceed $100,000,000, and on and after the Commitment Reduction Date, $50,000,000.”
(c)    Section 2.05 of the Credit Agreement is hereby amended by inserting the following sentence at the end thereof: 
“Notwithstanding the foregoing, but without limiting any other reductions otherwise permitted by this Agreement, the Commitments of the Lenders shall automatically be reduced pursuant to the Revolver Commitment Reduction on the Commitment Reduction Date.”
(d)    Section 2.05 of the Credit Agreement is hereby further amended by re-designating the existing Section 2.05 as Section 2.05(a) and inserting the following new clause (b) immediately following the newly designated clause (a):

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement
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“(b)    If, on any Business Day after giving effect to any reduction or termination of Commitments under this Section 2.05, the LC Exposure exceeds the LC Commitment, then the Borrowers shall, jointly and severally, Cash Collateralize the amount of such excess on such Business Day.”
(e)    Section 2.11 of the Credit Agreement is hereby amended and restated in its entirety as follows:
“Any Borrower may, upon notice to the Administrative Agent no later than 11:00 a.m. (New York City time) on the Business Day of the proposed date of the prepayment in the case of Alternate Base Rate Advances and on the third Business Day prior to the proposed date of the prepayment in the case of Eurodollar Rate Advances, in each case stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given such Borrower shall, prepay the outstanding principal amount of the Revolving Credit Advances owed by such Borrower comprising part of the same Revolving Credit Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that (x) each partial prepayment shall be in an aggregate principal amount not less than $5,000,000 or an integral multiple of $1,000,000 in excess thereof, (y) in the event of any such prepayment of a Eurodollar Rate Advance, such Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 2.23 and (z) such Borrower shall not be required to comply with the notice requirements set forth above or clause (x) of this proviso, in each case, with respect to Advances prepaid in connection with the Revolver Prepayment.”
(f)    Section 5.03(a) of the Credit Agreement is hereby amended by inserting immediately after the text “other than Restricted Payments necessary for each of Rayonier and any of its Subsidiaries that are REITs to maintain their respective tax status as a REIT”, the following additional text: “and other than, so long as no Event of Default has occurred and is then continuing or would result immediately therefrom, Restricted Payments by Rayonier on the SpinCo Distribution Date constituting the SpinCo Distribution”.
(g)    Section 5.03(d) of the Credit Agreement is hereby amended by inserting immediately after the text “(excluding any such conveyance, transfer, sale, lease or other disposition or series of related conveyances, transfers, sales, leases or other dispositions”, the following additional text: “(t) constituting the SpinCo Distribution by Rayonier on the SpinCo Distribution Date,”.
(h)    Clause (vii) of Section 5.03(g) of the Credit Agreement is hereby amended by deleting the word “and” at the end thereof.
(i)    Clause (viii) of Section 5.03(g) of the Credit Agreement is hereby amended and restated in its entirety as follows:
“(viii) the SpinCo Transaction Debt; and”

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement
4

    

(j)    Section 5.03(g) of the Credit Agreement is hereby amended by inserting a new clause (ix) immediately following clause (viii) as follows: 
“(ix) Debt other than Debt described in clauses (i) through (viii) of this Section 5.03(g); provided that the aggregate principal amount of Debt permitted pursuant to this clause (ix) shall not in the aggregate at any time outstanding exceed 15% of the Consolidated Net Tangible Assets of Rayonier and its Subsidiaries determined as of the most recently ended Fiscal Quarter for which financial statements have been or are required to have been delivered pursuant to Section 5.01(k).”
(k)    Clause (k) of Section 6.01 of the Credit Agreement is hereby amended by deleting the word “or” at the end thereof;
(l)    Clause (l) of Section 6.01 of the Credit Agreement is hereby amended by adding the word “or” at the end thereof;
(m)    Section 6.01 of the Credit Agreement is hereby amended by inserting the following new clause (m) immediately following clause (l):
“(m) The Revolver Prepayment shall not have occurred on the Commitment Reduction Date;”
(n)     Schedule I of the Credit Agreement is hereby replaced in its entirety with Schedule I attached hereto effective upon the Commitment Reduction Date.
SECTION 2.    Conditions of Effectiveness to Pre-Amendment Incremental Revolving Credit Commitments.  Section 1 of this Amendment shall become effective on the date (the “Amendment No. 1 Effective Date”) when, and only when, the following conditions shall have been satisfied or waived in accordance with Section 8.01 of the Credit Agreement:
(a)    The Administrative Agent shall have received a counterpart signature page of this Amendment duly executed by (i) the Borrower, (ii) the Administrative Agent, (iii) Lenders constituting the Required Lenders, and (iv) each Issuing Bank or, as to any of the foregoing parties, written evidence reasonably satisfactory to the Administrative Agent that such party has executed this Amendment.
(b)    The Administrative Agent shall have received payment of all amounts payable to the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent) in connection with this Amendment, to the extent invoiced in reasonable detail, pursuant to Section 8.04 of the Credit Agreement in connection with the preparation, negotiation, execution and delivery of this Agreement.
SECTION 3.    Effect of this Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, Issuing Banks or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit 

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement
5

    

Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Borrower to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.  This Amendment shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to herein.  From and after the Amendment No. 1 Effective Date, each reference in any Loan Document to the Credit Agreement, to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as modified hereby.  This Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.
SECTION 4.    Representations and Warranties.  Each Loan Party represents and warrants that on and as of the date hereof:
(a)    (i) The execution, delivery and performance by such party of this Amendment and the transactions contemplated hereby have been duly authorized by all necessary corporate or other action, and (ii) this Amendment has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms, except as may be limited by and subject to (1) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws of general applicability relating to or affecting creditors’ rights generally, (2) general principals of equity, regardless of whether considered in a proceeding in equity or at law and (3) implied covenants of good faith and fair dealing.
(b)    The representations and warranties of such party contained in the Credit Agreement and any other Loan Document are true and correct in all material respects; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided, further, that any representation and warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates; provided, in addition, that, with respect to the representations and warranties set forth in the first sentence of Section 4.01(i) of the Credit Agreement, all information filed by Rayonier or any of its Subsidiaries with the SEC and publicly available to the Administrative Agent and the Lenders from the SEC shall constitute written information furnished by or on behalf of any Borrower or any of its Subsidiaries to the Administrative Agent or any Lender in connection with the negotiation of the Credit Agreement or any other Loan Document. 
(c)    Both before and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.
SECTION 5.    Execution in Counterparts.  This Amendment  may be executed in counterparts (and by different parties hereto in separate counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or in electronic format (i.e., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment. 

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement
6

    

SECTION 6.    Governing Law.  This Amendment and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment and the transactions contemplated hereby shall be governed by, and construed in accordance with, the laws of the State of New York.
SECTION 7.    WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION 8.    Jurisdiction; Consent to Service of Process. 
(a) Each Borrower irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender, any Issuing Bank, or any Related Party of the foregoing in any way relating to this Amendment or the transactions relating hereto, in any forum other than the courts of the State of New York sitting in the Borough of Manhattan, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Amendment shall affect any right that the Administrative Agent, any Lender, or any Issuing Bank may otherwise have to bring any action or proceeding relating to this Amendment against any Borrower or any other Loan Party or its properties in the courts of any jurisdiction.
(b) Each Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Amendment in any court referred to in paragraph (a) of this Section 8. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement
7

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.
 
RAYONIER INC.

By: /s/ MICHAEL H. WALSH                       
Name: Michael H. Walsh
Title: Treasurer

RAYONIER TRS HOLDING INC.

By: /s/ MICHAEL H. WALSH                       
Name: Michael H. Walsh
Title: Treasurer

RAYONIER OPERATING COMPANY LLC

By: /s/ MICHAEL H. WALSH                       
Name: Michael H. Walsh
Title: Treasurer

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

CREDIT SUISSE AG, CAYMEN ISLANDS BRANCH, as Administrative Agent

By: /s/ CHRISTOPHER DAY                           
Name: Christopher Day
Title: Authorized Signatory

By: /s/ JEAN-MARC VAUCLAIR                     
Name: Jean-Marc Vauclair
Title: Authorized Signatory

    

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

CREDIT SUISSE AG, CAYMEN ISLANDS BRANCH, as Issuing Bank and Lender

By: /s/ CHRISTOPHER DAY                           
Name: Christopher Day
Title: Authorized Signatory

By: /s/ JEAN-MARC VAUCLAIR                     
Name: Jean-Marc Vauclair
Title: Authorized Signatory

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

JP Morgan Chase Bank, N.A.,
as Issuing Bank and Lender

By: /s/ ANTJE FOCKE                           
Name: Antje Focke
Title: Senior Underwriter

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

DNB CAPITAL LLC, as Lender

By: /s/ KRISTIE LI                             
Name: Kristie Li
Title: First Vice President

By: /s/ PHIL KURPIEWSKI                 
Name: Phil Kurpiewski
Title: Senior Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

Farm Credit East, ACA, as Lender

By: /s/ JAMES M. PAPAI                       
Name: James M. Papai
Title: Sr. Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

AgFirst Farm Credit Bank,
 as Voting Participant

By: /s/ STEVEN J. O'SHEA                
Name: Steven J. O'Shea
Title: Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

Farm Bank of Texas, as Lender 

By: /s/ LUIS M. H. REQUEJO              
Name: Luis M. H. Requejo
Title: Director Capital markets

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

AgStar Financial Services, PCA,
 as Lender 

By: /s/ GRAHAM J. DEE              
Name: Graham J. Dee
Title: AVP Capital Markets

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

Synovus Bank, 

By: /s/ MICHAEL SAWICKI            
Name: Michael Sawicki
Title: Corporate Banking

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

Bank of America, N.A.,
 as Lender 

By: /s/ MIKE DELANEY              
Name: Mike Delaney
Title: Director

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

CoBank, ACB,
 as Lender 

By: /s/ ZACHARY CARPENTER              
Name: Zachary Carpenter
Title: Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

Fifth Third Bank, An Ohio Banking Corporation 
, as Issuing Bank and Lender

By: /s/ JOHN A. MARIAN                   
Name: John A. Marian
Title: Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

PNC Bank N.A. , 
as Lender

By: /s/ BRITTON CORE                   
Name: Britton Core
Title: Senior Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

Regions Bank
as Lender

By: /s/ LOUIS COSTANZA                 
Name: Louis Costanza
Title: SVP

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

Royal Bank of Canada,
as Lender

By: /s/ BALJIT MANN                 
Name: Baljit Mann
Title: Authorized Signatory

By: /s/ GLEN BARISOFF               
Name: Glen Barisoff
Title: Authorized Signatory

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

as Lender Sumitomo Mitsui Banking Corp.

By: /s/ NOBUYUKI KAWABATA            
Name: Nobuyuki Kawabata
Title: Director & General Manager, PDAD

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

SUNTRUST BANK, as Lender

By: /s/ VINAY DESAI                 
Name: Vinay Desai
Title: Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

TD Bank, N.A., as Lender

By: /s/ MICHELE DRAGONETTI           
Name: Michele Dragonetti
Title: Senior Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

US BANK NATIONAL ASSOCIATION

By: /s/ JONATHAN F. LINDVALL           
Name: Jonathan F. Lindvall
Title: Vice President

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

as Lender

By: /s/ BETH GORDON           
Name: Beth Gordon
Title: Sr. Vice Pres.

Rayonier - Amendment No 1 to
Amended and Restated Five-Year Revolving Credit Agreement

SCHEDULE I
COMMITMENT AMOUNTS
AND APPLICABLE LENDING OFFICES

	
						
	

Name of Initial Lender

	

Commitment Amount 

	

Domestic Lending Office 

	

Eurocurrency Lending Office

	DNB Capital LLC
	

	$8,000,000.00
	

	 
	 

	Farm Credit East, ACA
	

	$12,444,444.44
	

	 
	 

	Synovus Bank
	

	$8,000,000.00
	

	 
	 

	Bank of America NA
	

	$12,222,222.22
	

	 
	 

	Branch Banking & Trust Company
	

	$10,222,222.22
	

	 
	 

	CoBank ACB
	

	$36,222,222.22
	

	 
	 

	Credit Suisse AG
	

	$12,222,222.22
	

	 
	 

	Fifth Third Bank
	

	$8,000,000.00
	

	 
	 

	JP Morgan Chase Bank National Association
	

	$12,222,222.22
	

	 
	 

	PNC Bank NA
	

	$8,000,000.00
	

	 
	 

	Regions Bank
	

	$7,555,555.56
	

	 
	 

	Royal Bank of Canada
	

	$8,000,000.00
	

	 
	 

	Sumitomo Mitsui Banking Corp
	

	$8,000,000.00
	

	 
	 

	Suntrust Bank
	

	$12,222,222.22
	

	 
	 

	TD Bank N.A
	

	$12,222,222.22
	

	 
	 

	US Bank NA
	

	$12,222,222.22
	

	 
	 

	Wells Fargo Bank, N.A.
	

	$12,222,222.22
	

	 
	 

	TOTAL:
	

	$200,000,000.00
	

	 
	 

NYDOCS02/1027246.2
Rayonier - Amendment No 1 to 
Amended and Restated Five-Year Revolving Credit Agreement
3

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