Document:

EX-10.6

 Exhibit 10.6 
 ESCROW AGREEMENT 
 This Escrow Agreement (this
“Agreement”) made and entered into as of this 9th day of January, 2014 by and among FS Investment Corporation III, a Maryland corporation (the “Corporation”), UMB Bank, N.A., as escrow agent, a national banking association organized and
existing under the laws of the United States of America (the “Escrow Agent”), and FS2 Capital Partners, LLC, a Delaware limited liability company (the “Dealer Manager”), for itself and for and on behalf of its
selected dealers (the “Selected Dealers”). 
 RECITALS 

WHEREAS, the Corporation proposes to offer and sell shares of common stock, par value $0.001 per share, of the Corporation
(“Common Stock”) to investors, including in a public offering of such shares of Common Stock. 
 WHEREAS,
pursuant to the Corporation’s public offering of shares of Common Stock (the “Offering”), it is seeking gross offering proceeds from persons not affiliated with the Corporation or its investment adviser of at least $2.5 million
(the “Minimum Offering Requirement”) and up to 400,000,000 shares of Common Stock, at an initial purchase price of $10.00 per share pursuant to the Corporation’s registration statement on Form N-2 (File No. 333-191925), as
supplemented or amended from time to time (the “Offering Document”). 
 WHEREAS, the Dealer Manager and the
Selected Dealers will sell shares of Common Stock in the public offering on behalf of the Corporation on a “best efforts” basis. 
 WHEREAS, the Corporation has agreed that the subscription price paid by subscribers for shares of Common Stock will be refunded to such subscribers if the Minimum Offering Requirement has not been met on
or prior to the date that is one year from the date of the final prospectus filed immediately before the commencement of the Offering (such one-year anniversary being referred to herein as the “Closing Date”). 

WHEREAS, the Corporation and the Dealer Manager desire to establish an escrow account (the “Escrow Account”) as further
described herein in which funds received from subscribers will be deposited and the Corporation and the Dealer Manager desire that UMB Bank, N.A. act as escrow agent to the Escrow Account and the Escrow Agent is willing to act in such capacity.

 WHEREAS, in order to subscribe for shares of Common Stock, a subscriber must deliver the full amount of its subscription:
(i) by check in U.S. dollars or (ii) by wire transfer of immediately available funds in U.S. dollars. 
 AGREEMENT

 NOW, THEREFORE, the Corporation, the Dealer Manager and the Escrow Agent agree to the terms of this Agreement as follows:

  

	1.	Establishment of Escrow Account; Escrow Period. 

  

	 	(a)	 On or prior to the commencement of the Offering, the parties shall establish the Escrow

	 	
Account with the Escrow Agent, which shall be entitled “UMB Bank as Agent for FS Investment Corporation III – Escrow Account.” Prior to meeting the Minimum Offering Requirement,
the Dealer Manager and Selected Dealers will instruct subscribers to make checks for subscriptions payable to the order of “UMB Bank, N.A., as escrow agent for FS Investment Corporation III.” 

 

	 	(b)	This Agreement shall be effective on the date on which the Offering Document is declared effective by the Securities and Exchange Commission. The escrow period shall
commence upon the effectiveness of this Agreement and shall continue until the earlier of (i) the date upon which the Escrow Agent receives confirmation from the Corporation or the Dealer Manager that the Corporation has met the Minimum
Offering Requirement, (ii) the Closing Date, or (iii) the termination of the Offering by the Corporation prior to meeting the Minimum Offering Requirement (the “Escrow Period”). 

 

	2.	Operation of the Escrow. 

  

	 	(a)	Deposits in the Escrow Account. During the Escrow Period, the Dealer Manager will promptly deliver, but in no event later than the end of the second business day
following receipt by the Dealer Manager, any monies received from subscribers for the payment of shares of Common Stock to the Escrow Agent for deposit in the Escrow Account, and the Escrow Agent shall deposit and hold in the Escrow Account any
monies received directly from subscribers for the payment of shares of Common Stock (collectively, the “Escrowed Funds”). All monies deposited into the Escrow Account shall be held in the Escrow Account until such funds are
disbursed in accordance with this Section 2. Prior to disbursement of the funds deposited in the Escrow Account, such funds shall not be subject to claims by creditors of the Corporation or any of its affiliates. If any of the instruments of
payment are returned to the Escrow Agent for nonpayment prior to receipt of the Break Escrow Affidavit (as described below), the Escrow Agent shall promptly notify the Corporation in writing via mail, e-mail or facsimile of such nonpayment, and is
authorized to debit the Escrow Account, as applicable in the amount of such returned payment as well as any interest earned on the amount of such payment. The Corporation will, or will cause its transfer agent, DST Systems, Inc. (the
“Transfer Agent”), to maintain a written account of each sale, which account shall set forth, among other things, the following information: (i) the subscriber’s name and address; (ii) the number of shares of Common
Stock purchased by such subscriber; and (iii) the amount paid by such subscriber for such shares of Common Stock. During the Escrow Period, neither the Corporation nor the Dealer Manager will be entitled to any principal funds deposited into
the Escrow Account. 

  

	 	(b)	 Distribution of the Escrowed Funds. If at any time on or prior to the Closing Date the Minimum Offering Requirement has been met, then upon the
happening of such event, the principal amount of the Escrowed Funds shall remain in the Escrow Account until the Escrow Agent receives written direction provided by the Corporation or the Dealer Manager instructing the Escrow Agent to deliver the
principal amount, or a portion thereof, of such Escrowed Funds as the Corporation or the Dealer Manager, as the case may be, shall direct in writing. An affidavit or certification from an officer of the Corporation or the Dealer Manager to the
Escrow Agent stating that the Minimum Offering Requirement has been timely met, shall constitute sufficient evidence for the 

  
 2 

	 	
purpose of this Agreement that such event has occurred (the “Break Escrow Affidavit”). The Break Escrow Affidavit shall indicate: (i) the date on which the Minimum Offering
Requirement has been met (the “Break Escrow Date”); (ii) the actual total number of shares of Common Stock sold as of the Break Escrow Date; and (iii) if not all, that portion of the Escrowed Funds to be transferred. Upon
the receipt by the Escrow Agent of the Break Escrow Affidavit, the Escrow Agent will deliver to State Street Bank and Trust Company (the “Custodian”), as directed by the Corporation, on the date of the first weekly closing following
the receipt of the Break Escrow Affidavit, the principal and interest earned on such Escrowed Funds to be transferred and the Escrow Agent shall from that point forward, transfer on the 1st business day following each subsequent closing all principal and interest earned on the Escrowed Funds for the prior
subscription period to the Custodian, as directed by the Corporation. Additionally, the Corporation hereby directs the Escrow Agent to provide the Transfer Agent with all electronic files and information needed by the Transfer Agent to perform its
duties as record keeper under its agreement with the Corporation. 

 If the Escrow Agent has not received a Break
Escrow Affidavit on or prior to the Closing Date, the Escrow Agent shall promptly return the Escrowed Funds, including interest, if any, thereon, to the subscribers, per the name, address and in the amounts provided by the Corporation, the Dealer
Manager or the Transfer Agent to the Escrow Agent without deduction, penalty or expense, and the Escrow Agent shall notify the Corporation and the Dealer Manager in writing of its distribution of the funds. The subscription payments returned to each
subscriber shall be free and clear of any and all claims of the Corporation or any of its creditors. The parties hereto hereby agree that, for purposes of this Section 2(b), the term “promptly return” shall mean that the Escrow Agent
shall return the Escrowed Funds to subscribers, upon the terms and subject to the conditions set forth in this Section 2(b), by noon of the business day following the Closing Date, in compliance with Rules 10b-9 and 15c2-4 promulgated under the
Securities Exchange Act of 1934, as amended. 
  

	3.	Escrowed Funds. Upon receipt of the Escrowed Funds, the Escrow Agent shall hold the Escrowed Funds in escrow pursuant to the terms of this Agreement. Until such
time as the Escrowed Funds shall be distributed by the Escrow Agent as provided herein, the Escrowed Funds shall be deposited by the Escrow Agent in an interest bearing account or as may otherwise be directed by the Corporation in writing.

 The Escrow Agent shall be entitled to sell or redeem any investment of the Escrowed Funds as necessary to make
any distributions required under this Agreement and shall not be liable or responsible for any loss resulting from any such sale or redemption. 
 Interest, if any, resulting from any investment of the Escrowed Funds shall be retained by the Escrow Agent, and shall be distributed according to this Agreement. 

 

	4.	 Duties of the Escrow Agent. The Escrow Agent shall have no duties or responsibilities other than those expressly set forth in this Agreement,
and no implied duties or obligations shall be read into this Agreement against the Escrow Agent. The Escrow Agent is not a party to, or bound by, any other agreement among the other parties hereto, and the Escrow Agent’s duties shall be
determined solely by reference to this Agreement. The Escrow Agent shall 

  
 3 

	 	
have no duty to enforce any obligation of any person, other than as provided herein. The Escrow Agent shall be under no liability to anyone by reason of any failure on the part of any other party
hereto or any maker, endorser or other signatory of any document or any other person to perform such person’s obligations under any such document. 

  

	5.	Liability of the Escrow Agent; Indemnification. The Escrow Agent acts hereunder as a depository only. The Escrow Agent is not responsible or liable in any manner
for the sufficiency, correctness, genuineness or validity of this Agreement or with respect to the form of execution of the same. The Escrow Agent shall not be liable for any action taken or omitted by it, or any action suffered by it to be taken or
omitted, in good faith, and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow
Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is
reasonably believed by the Escrow Agent to be genuine and to be signed or presented by the proper person(s). The Escrow Agent shall not be held liable for any error in judgment made in good faith by an officer or employee of the Escrow Agent unless
it shall be proved that the Escrow Agent was grossly negligent or reckless or acted intentionally in bad faith or with willful misconduct. The Escrow Agent shall not be bound by any notice of demand, or any waiver, modification, termination or
rescission of this Agreement or any of the terms hereof, unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall give its prior
written consent thereto. 

 The Escrow Agent may consult legal counsel and shall exercise reasonable care in the
selection of such counsel, in the event of any dispute or question as to the construction of any provisions hereof or its duties hereunder, and it shall incur no liability and shall be fully protected in acting in accordance with the reasonable
opinion or instructions of such counsel. 
 The Escrow Agent shall not be responsible, may conclusively rely upon and shall be
protected, indemnified and held harmless by the Corporation, for the sufficiency or accuracy of the form of, or the execution, validity, value or genuineness of any document or property received, held or delivered by it hereunder, or of the
signature or endorsement thereon, or for any description therein; nor shall the Escrow Agent be responsible or liable in any respect on account of the identity, authority or rights of the persons executing or delivering or purporting to execute or
deliver any document, property or this Agreement. 
 In the event that the Escrow Agent shall become involved in any arbitration
or litigation relating to the Escrowed Funds, the Escrow Agent is authorized to comply with any final, binding and non-appealable decision reached through such arbitration or litigation. 

The Corporation, hereby agrees to indemnify the Escrow Agent for, and to hold it harmless against any loss, liability or expense incurred
in connection herewith without gross negligence, recklessness, bad faith or willful misconduct on the part of the Escrow Agent, including, without limitation, reasonable legal or other fees arising out of or in connection with its entering into this
Agreement and carrying out its duties hereunder, including, without limitation, the costs and expenses of defending itself against any claim of liability in the premises or any action for interpleader. The Escrow Agent shall be under no obligation
to 

  
 4 

 
institute or defend any action, suit, or legal proceeding in connection herewith, unless first indemnified and held harmless to its satisfaction in accordance with the foregoing, except that the
Escrow Agent shall not be indemnified against any loss, liability or expense arising out of its own gross negligence, recklessness, bad faith or willful misconduct. Such indemnity shall survive the termination or discharge of this Agreement or
resignation of the Escrow Agent. 
  

	6.	The Escrow Agent’s Fee. The Escrow Agent shall be entitled to fees and expenses for its regular services as the Escrow Agent as set forth in
Exhibit A. Additionally, the Escrow Agent is entitled to reasonable fees for extraordinary services and reimbursement of any reasonable documented out-of-pocket and extraordinary costs and expenses related to its obligations as the
Escrow Agent under this Agreement, including, but not limited to, reasonable attorneys’ fees. All of the Escrow Agent’s compensation, costs and expenses shall be paid by the Corporation. 

 

	7.	Security Interests. No party to this Agreement shall grant a security interest in any monies or other property deposited with the Escrow Agent under this
Agreement, or otherwise create a lien, encumbrance or other claim against such monies or borrow against the same. 

  

	8.	Dispute. In the event of any disagreement between the undersigned or the person or persons named in the instructions contained in this Agreement, or any other
person, resulting in adverse claims and demands being made in connection with or for any papers, money or property involved herein, or affected hereby, the Escrow Agent shall be entitled to refuse to comply with any demand or claim, as long as such
disagreement shall continue, and in so refusing to make any delivery or other disposition of any money, papers or property involved or affected hereby, the Escrow Agent shall not be or become liable to the undersigned or to any person named in such
instructions for its refusal to comply with such conflicting or adverse demands, and the Escrow Agent shall be entitled to refuse and refrain to act until: (a) the rights of the adverse claimants shall have been fully and finally adjudicated in
a court assuming and having jurisdiction of the parties and money, papers and property involved herein or affected hereby; or (b) all differences shall have been adjusted by agreement and the Escrow Agent shall have been notified thereof in
writing, signed by all the interested parties. 

  

	9.	Resignation of the Escrow Agent. The Escrow Agent may resign or be removed, at any time, for any reason, by written notice of its resignation or removal to the
proper parties at their respective addresses as set forth herein, at least 60 days before the date specified for such resignation or removal to take effect. Upon the effective date of such resignation or removal: 

 

	 	(a)	all cash and other payments and all other property then held by the Escrow Agent hereunder shall be delivered by it to such successor escrow agent as may be designated
in writing by the Corporation, whereupon the Escrow Agent’s obligations hereunder shall cease and terminate; 

  

	 	(b)	if no such successor escrow agent has been designated by such date, all obligations of the Escrow Agent hereunder shall, nevertheless, cease and terminate, and the
Escrow Agent’s sole responsibility thereafter shall be to keep all property then held by it and to deliver the same to a person designated in writing by the Corporation or in accordance with the directions of a final order or judgment of a
court of competent jurisdiction; and 

  
 5 

	 	(c)	if no such successor escrow agent has been designated by such date, the Escrow Agent may petition any court of competent jurisdiction for the appointment of a successor
agent; further the Escrow Agent may pay into court all monies and property deposited with the Escrow Agent under this Agreement. 

  

	10.	Notices. All notices, demands and requests required or permitted to be given under the provisions hereof must be in writing and shall be deemed to have been
sufficiently given, upon receipt, if (i) personally delivered, (ii) sent by telecopy and confirmed by phone, (iii) sent by electronic mail and confirmed by electronic mail confirmation of receipt or by telephone, or (iv) mailed
by registered or certified mail, with return receipt requested, delivered as follows: 

  

			
	(1) If to the Corporation:	  	FS Investment Corporation III
		  	2929 Arch Street, Suite 675
		  	Philadelphia, PA 19104
		  	Telephone: (215) 495-1150
		  	Facsimile: (215) 222-4649
		  	Attn: Stephen S. Sypherd
		
	(2) If to the Escrow Agent:	  	UMB Bank, N.A.
		  	1010 Grand Blvd., 4th Floor
		  	Mail Stop: 1020409
		  	Kansas City, Missouri 64106
		  	Attention: Lara Stevens,
		  	Corporate Trust & Escrow Services
		  	Telephone: (816) 860-3017
		  	Facsimile: (816) 860-3029
		
	(3) If to Dealer Manager:	  	FS2 Capital Partners, LLC
		  	2929 Arch Street, Suite 675
		  	Philadelphia, PA 19104
		  	Telephone: (215) 495-1150
		  	Facsimile: (215) 222-4649
		  	Attn: Chief Compliance Officer

  

	11.	Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Missouri without regard to the principles of conflicts
of law. 

  

	12.	Binding Effect; Benefit. This Agreement shall be binding upon and inure to the benefit of the permitted successors and assigns of the parties hereto.

  

	13.	Modification. This Agreement may be amended, modified or terminated at any time by a writing executed by the Corporation and the Escrow Agent.

  
 6 

	14.	Assignability. This Agreement shall not be assigned by the Escrow Agent without the Corporation’s prior written consent. 

 

	15.	Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one
and the same instrument. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing
of any claim, action or suit in the appropriate court of law. 

  

	16.	Headings. The section headings contained in this Agreement are inserted for convenience only, and shall not affect in any way, the meaning or interpretation of
this Agreement. 

  

	17.	Severability. This Agreement constitutes the entire agreement among the parties and supersedes all prior and contemporaneous agreements and undertakings of the
parties in connection herewith. No failure or delay of either party in exercising any right, power or remedy may be, or may be deemed to be, a waiver thereof; nor may any single or partial exercise of any right, power or remedy preclude any other or
further exercise of any right, power or remedy. In the event that any one or more of the provisions contained in this Agreement, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent
permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement. 

  

	18.	Earnings Allocation; Tax Matters; Patriot Act Compliance. The Corporation or its agent shall be responsible for all tax reporting under this Agreement. The
Corporation shall provide to the Escrow Agent upon the execution of this Agreement any documentation requested and any information reasonably requested by the Escrow Agent to comply with the USA Patriot Act of 2001, as amended from time to time.

  

	19.	Miscellaneous. This Agreement shall not be construed against the party preparing it, and shall be construed without regard to the identity of the person who
drafted it or the party who caused it to be drafted and shall be construed as if all parties had jointly prepared this Agreement and it shall be deemed their joint work product, and each and every provision of this Agreement shall be construed as
though all of the parties hereto participated equally in the drafting hereof; and any uncertainty or ambiguity shall not be interpreted against any one party. As a result of the foregoing, any rule of construction that a document is to be construed
against the drafting party shall not be applicable. 

  

	20.	Termination of the Escrow Agreement. This Agreement, except for Sections 5 and 9 hereof, which shall continue in effect, shall terminate upon written notice from
the Corporation to the Escrow Agent. 

 [SIGNATURE PAGE FOLLOWS] 

  
 7 

 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by
their duly authorized representatives as of the date first written hereinabove. 
  

			
	CORPORATION:
	
	FS Investment Corporation III
		
	By:	 	 /s/ Stephen Sypherd

	Name:	 	 Stephen Sypherd

	Title:	 	 Vice President, Treasurer and Secretary

	
	DEALER MANAGER:
	
	FS2 Capital Partners, LLC
		
	By:	 	 /s/ Adrienne Hart

	Name:	 	 Adrienne Hart

	Title:	 	 Chief Compliance Officer

	
	ESCROW AGENT:
	
	UMB Bank, N.A.
		
	By:	 	 /s/ Lara L. Stevens

	Name:	 	 Lara L. Stevens

	Title:	 	 Vice President

 [Signature Page to Escrow Agreement] 

 EXHIBIT A 
 ESCROW FEES AND EXPENSES 
  

			
	 Acceptance Fee
	  	
	 Review documents, establish accounts, and Set up recon file/feeds with Transfer Agent
	  	$3,250
		
	 Annual Fee
	  	
	 Annual Escrow Agent
	  	$2,500
		
	 Transactional Fees
	  	
	 Outgoing Wire Transfer
	  	$15 each
	 BAI File to DST
	  	$2.50 per business day
	 Wire Ripping to DST
	  	$10 per business day
	 Expense Reimbursement
	  	6% of Total Fee billed

 Acceptance fee and first year Annual fee will be payable at the initiation of the escrow. Thereafter, the annual fee will
be billed annually in advance and Transactional Fees will be billed quarterly in arrears. Other fees and expenses will be billed as incurred. 

Fees specified are for the regular, routine services contemplated by the Agreement, and any additional or extraordinary services, including, but not
limited to disbursements involving a dispute or arbitration, or administration while a dispute, controversy or adverse claim is in existence, will be charged based upon time required at the then standard hourly rate. In addition to the specified
fees, all reasonable expenses related to the administration of the Agreement (other than normal overhead expenses of the regular staff) such as, but not limited to, travel, telephone, facsimile, supplies, legal fees, accounting fees, etc., will be
reimbursable.EX-10.3

 EXHIBIT 10.3 

EMPLOYEE MATTERS AGREEMENT 
 BY
AND BETWEEN 
 RAYONIER INC. 

AND 
 RAYONIER ADVANCED MATERIALS
INC. 
 DATED AS OF [—], 2014 

 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 Section 1.01.
	  	Definitions	  	 	1	  
	 Section 1.02.
	  	Interpretation	  	 	9	  
		
	 ARTICLE II GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	  	 	9	  
			
	 Section 2.01.
	  	General Principles	  	 	9	  
	 Section 2.02.
	  	Service Credit	  	 	11	  
	 Section 2.03.
	  	Benefit Plans	  	 	11	  
	 Section 2.04.
	  	Individual Agreements	  	 	12	  
	 Section 2.05.
	  	Collective Bargaining	  	 	13	  
	 Section 2.06.
	  	Non-U.S. Regulatory Compliance	  	 	13	  
		
	 ARTICLE III ASSIGNMENT OF EMPLOYEES
	  	 	13	  
			
	 Section 3.01.
	  	Active Employees	  	 	13	  
	 Section 3.02.
	  	No-Hire and Non-Solicitation	  	 	15	  
		
	 ARTICLE IV EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION
	  	 	15	  
			
	 Section 4.01.
	  	Generally	  	 	15	  
	 Section 4.02.
	  	Equity Incentive Awards	  	 	15	  
	 Section 4.03.
	  	Non-Equity Incentive Plans	  	 	21	  
	 Section 4.04.
	  	Executive Severance and Trusts	  	 	22	  
	 Section 4.05.
	  	Director Compensation	  	 	23	  
		
	 ARTICLE V QUALIFIED RETIREMENT PLANS
	  	 	24	  
			
	 Section 5.01.
	  	SpinCo Pension Plan	  	 	24	  
	 Section 5.02.
	  	SpinCo Retained Pension Plans	  	 	27	  
	 Section 5.03.
	  	SpinCo Savings Plan	  	 	27	  
	 Section 5.04.
	  	SpinCo Retained Savings Plans	  	 	29	  
	 Section 5.05.
	  	Wood Products Plans	  	 	29	  
		
	 ARTICLE VI NONQUALIFIED DEFERRED COMPENSATION PLANS
	  	 	30	  
			
	 Section 6.01.
	  	SpinCo Excess Benefit Plan	  	 	30	  
	 Section 6.02.
	  	SpinCo Excess Savings and Deferred Compensation Plan	  	 	30	  
	 Section 6.03.
	  	Participation; Distributions	  	 	31	  
		
	 ARTICLE VII WELFARE BENEFIT PLANS
	  	 	31	  
			
	 Section 7.01.
	  	Welfare Plans	  	 	31	  
	 Section 7.02.
	  	COBRA and HIPAA	  	 	33	  
	 Section 7.03.
	  	Vacation, Holidays and Leaves of Absence	  	 	33	  

  
 -i- 

							
	 Section 7.04.
	  	Severance and Unemployment Compensation	  	 	33	  
	 Section 7.05.
	  	Workers’ Compensation	  	 	33	  
	 Section 7.06.
	  	Insurance Contracts	  	 	33	  
	 Section 7.07.
	  	Third-Party Vendors	  	 	34	  
	 Section 7.08.
	  	SpinCo Retained Welfare Plans	  	 	34	  
		
	 ARTICLE VIII NON-U.S. EMPLOYEES
	  	 	34	  
		
	 ARTICLE IX MISCELLANEOUS
	  	 	34	  
			
	 Section 9.01.
	  	Employee Records	  	 	34	  
	 Section 9.02.
	  	Preservation of Rights to Amend	  	 	35	  
	 Section 9.03.
	  	Fiduciary Matters	  	 	36	  
	 Section 9.04.
	  	Further Assurances	  	 	36	  
	 Section 9.05.
	  	Counterparts; Entire Agreement; Corporate Power	  	 	36	  
	 Section 9.06.
	  	Governing Law	  	 	37	  
	 Section 9.07.
	  	Assignability	  	 	37	  
	 Section 9.08.
	  	Third-Party Beneficiaries	  	 	37	  
	 Section 9.09.
	  	Notices	  	 	37	  
	 Section 9.10.
	  	Severability	  	 	39	  
	 Section 9.11.
	  	Force Majeure	  	 	39	  
	 Section 9.12.
	  	Headings	  	 	39	  
	 Section 9.13.
	  	Survival of Covenants	  	 	39	  
	 Section 9.14.
	  	Waivers of Default	  	 	39	  
	 Section 9.15.
	  	Dispute Resolution	  	 	40	  
	 Section 9.16.
	  	Specific Performance	  	 	40	  
	 Section 9.17.
	  	Amendments	  	 	40	  
	 Section 9.18.
	  	Interpretation	  	 	40	  
	 Section 9.19.
	  	Mutual Drafting	  	 	41	  

  
 -ii- 

 EMPLOYEE MATTERS AGREEMENT 

This EMPLOYEE MATTERS AGREEMENT, dated as of [—], 2014 (this
“Agreement”), is by and between Rayonier Inc., a North Carolina corporation (“Rayonier”), and Rayonier Advanced Materials Inc., a Delaware corporation (“SpinCo”). 

R E C I T A L S: 
 WHEREAS, the
board of directors of Rayonier (the “Rayonier Board”) has determined that it is in the best interests of Rayonier and its shareholders to create a new publicly traded company that shall operate the SpinCo Business; 

WHEREAS, in furtherance of the foregoing, the Rayonier Board has determined that it is appropriate and desirable to separate the SpinCo
Business from the Rayonier Business (the “Separation”) and, following the Separation, make a distribution, on a pro rata basis, to holders of Rayonier Shares on the Record Date of all the outstanding SpinCo Shares owned by Rayonier
(the “Distribution”); 
 WHEREAS, in order to effectuate the Separation and Distribution, Rayonier and SpinCo have entered
into a Separation and Distribution Agreement, dated as of [•], 2014 (the “Separation and Distribution Agreement”); and 

WHEREAS, in addition to the matters addressed by the Separation and Distribution Agreement, the Parties desire to enter into this Agreement to
set forth the terms and conditions of certain employment, compensation and benefit matters. 
 NOW, THEREFORE, in consideration of the
mutual agreements, provisions and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as
follows: 
 ARTICLE I 

DEFINITIONS 
 Section 1.01.
Definitions . For purposes of this Agreement, the following terms shall have the meanings set forth below. Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to them in the Separation
and Distribution Agreement. 
 “Action” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Adjusted SpinCo Stock Value” shall mean the product obtained by multiplying (i) the SpinCo Stock Value and
(ii) the Distribution Ratio. 
 “Affiliate” shall have the meaning set forth in the Separation and Distribution
Agreement. 

 “Agreement” shall have the meaning set forth in the preamble to this Agreement
and shall include all Schedules hereto and all amendments, modifications, and changes hereto entered into pursuant to Section 9.17. 

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

“Assets” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Benefit Plan” shall mean any contract, agreement, policy, practice, program, plan, trust, commitment or arrangement
providing for benefits, perquisites or compensation of any nature from an employer to any Employee, or to any family member, dependent, or beneficiary of any such Employee, including pension plans, thrift plans, supplemental pension plans and
welfare plans, and contracts, agreements, policies, practices, programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits, change in control protections or benefits, travel and
accident, life, accidental death and dismemberment, disability and accident insurance, tuition reimbursement, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences and holidays; provided, however, the
term “Benefit Plan” does not include any government-sponsored benefits, such as workers’ compensation, unemployment or any similar plans, programs or policies. 

“COBRA” shall mean the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601
et seq. of ERISA and at Section 4980B of the Code. 
 “Code” shall have the meaning set forth in the
Separation and Distribution Agreement. 
 “Corporate Bonus Continuation Period” shall mean a period of time commencing as
of the Distribution Date and ending on the earlier of December 31, 2015 and the first regularly scheduled meeting of SpinCo shareholders occurring more than 12 months after the Distribution Date. 

“Distribution” shall have the meaning set forth in the recitals to this Agreement. 

“Distribution Date” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Distribution Ratio” shall have the meaning set forth in the Separation and Distribution Agreement. 

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

“Employee” shall mean any Rayonier Group Employee or SpinCo Group Employee. 

  
 -2- 

 “ERISA” shall mean the U.S. Employee Retirement Income Security Act of 1974, as
amended, and the regulations promulgated thereunder. 
 “Exchange Act” shall have the meaning set forth in the Separation
and Distribution Agreement. 
 “FICA” shall have the meaning set forth in Section 3.01(f). 

“Force Majeure” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Former Employees” shall mean Former Rayonier Group Employees and Former SpinCo Group Employees. 

“Former Rayonier Group Employee” shall mean any individual who is a former employee of the Rayonier Group as of the Effective
Time and who is not a Former SpinCo Group Employee. 
 “Former SpinCo Group Employee” shall mean (i) any individual
identified as a Former SpinCo Group Employee on the list previously prepared by Rayonier, dated [•], 2014, (ii) any individual who is a former employee of Rayonier or any of its former Subsidiaries or Subsidiaries as of the Effective Time,
in each case, whose most recent employment with Rayonier was with a member of the SpinCo Group or the SpinCo Business, and (iii) any individual who is a former employee of the Southern Wood Piedmont Company and who as of immediately prior to
the Effective Time is not an employee of Rayonier or its Subsidiaries. 
 “FUTA” shall have the meaning set forth in
Section 3.01(f). 
 “General Continuation Period” shall mean a period of time commencing as of the Distribution
Date and ending on December 31, 2015. 
 “Governmental Authority” shall have the meaning set forth in the Separation
and Distribution Agreement. 
 “HIPAA” shall mean the U.S. Health Insurance Portability and Accountability Act of 1996, as
amended, and the regulations promulgated thereunder. 
 “Individual Agreement” shall mean any individual
(i) employment contract, (ii) retention, severance or change-of-control agreement, (iii) expatriate (including any international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation,
equalization of taxes and living standards in the host country), or (iv) other agreement containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the Rayonier Group and a
SpinCo Group Employee, as in effect immediately prior to the Effective Time. 
 “IRS” shall have the meaning set forth in
the Separation and Distribution Agreement. 

  
 -3- 

 “Law” shall have the meaning set forth in the Separation and Distribution
Agreement. 
 “Liabilities” shall have the meaning set forth in the Separation and Distribution Agreement. 

“NYSE” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Party” shall mean a party to this Agreement. 

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

“Post-Separation Rayonier Awards” shall mean Post-Separation Rayonier Options, Post-Separation Rayonier Restricted Stock
Awards, Post-Separation Rayonier Performance Share Awards and Post-Separation Rayonier Time-Vested Awards, collectively. 

“Post-Separation Rayonier Option” shall mean a Rayonier Option adjusted as of the Effective Time in accordance with
Section 4.02(b). 
 “Post-Separation Rayonier Performance Share Award” shall mean a Rayonier Performance Share
Award adjusted as of the Effective Time in accordance with Section 4.02(c). 
 “Post-Separation Rayonier Restricted
Stock Award” shall mean a Rayonier Restricted Stock Award adjusted as of the Effective Time in accordance with Section 4.02(a). 

“Post-Separation Rayonier Stock Value” shall mean the simple average of the volume weighted average per-share price of
Rayonier Shares trading on the NYSE during each of the first ten (10) full Trading Sessions immediately after the Effective Time. 

“Post-Separation Rayonier Time-Vested Award” shall mean a time-vested equity award granted as of the Effective Time pursuant
to a Rayonier Equity Plan in accordance with Section 4.02(c)(ii)(A). 
 “Providing Party” shall have the
meaning set forth in Section 2.02(b). 
 “QDRO” shall mean a qualified domestic relations order within the
meaning of ERISA Section 206(d) and Section 414(p) of the Code. 
 “Rayonier” shall have the meaning set forth in
the preamble to this Agreement. 
 “Rayonier Awards” shall mean Rayonier Options, Rayonier Restricted Stock Awards and
Rayonier Performance Share Awards, collectively. 

  
 -4- 

 “Rayonier Benefit Plan” shall mean any Benefit Plan established, sponsored or
maintained by Rayonier or any of its Subsidiaries immediately prior to the Effective Time, excluding any SpinCo Benefit Plan. 

“Rayonier Board” shall have the meaning set forth in the recitals to this Agreement. 

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

“Rayonier Change of Control” shall have the meaning set forth in Section 4.02(d). 

“Rayonier Compensation Committee” shall mean the Compensation Committee of the Rayonier Board. 

“Rayonier Equity Plan” shall mean any equity compensation plan sponsored or maintained by Rayonier immediately prior to the
Effective Time, including the Rayonier Incentive Stock Plan, as amended, and the 1994 Rayonier Incentive Stock Plan, as amended. 

“Rayonier Group” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Rayonier Group Employees” shall have the meaning set forth in Section 3.01(a). 

“Rayonier HSA” shall have the meaning set forth in Section 7.01(c). 

“Rayonier Liability” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Rayonier Non-Equity Incentive Plan” shall mean the Rayonier Non-Equity Incentive Plan as in effect immediately prior to the
Effective Time. 
 “Rayonier Nonqualified Plans” shall mean the Rayonier Excess Benefit Plan and the Rayonier Excess
Savings and Deferred Compensation Plan. 
 “Rayonier Option” shall mean an option to purchase Rayonier Shares granted
pursuant to a Rayonier Equity Plan that is outstanding as of immediately prior to the Effective Time. 
 “Rayonier Pension
Plan” shall mean the Retirement Plan for Salaried Employees of Rayonier Inc. 
 “Rayonier Pension Trust” shall
mean the Rayonier Inc. Master Retirement Trust. 
 “Rayonier Performance Share Award” shall mean a performance share award
granted pursuant to the Rayonier Incentive Stock Plan and a Performance Share Award Program thereunder that is outstanding as of immediately prior to the Effective Time. 

“Rayonier Ratio” shall mean the quotient obtained by dividing the Rayonier Stock Value by the Post-Separation Rayonier Stock
Value. 

  
 -5- 

 “Rayonier Restricted Stock Award” shall mean a restricted stock award granted
pursuant to a Rayonier Equity Plan that is outstanding as of immediately prior to the Effective Time. 
 “Rayonier Savings
Plan” shall mean the Rayonier Investment and Savings Plan for Salaried Employees. 
 “Rayonier Share Fund” shall
have the meaning set forth in Section 5.03(b). 
 “Rayonier Shares” shall have the meaning set forth in the
Separation and Distribution Agreement. 
 “Rayonier Stock Value” shall mean the simple average of the volume weighted
average per-share price of Rayonier Shares trading “regular way with due bills” on the NYSE during each of the last ten (10) full Trading Sessions immediately prior to the Effective Time. 

“Rayonier Value Factor” shall mean the quotient obtained by dividing (i) the Rayonier Stock Value by (ii) the sum
of (A) the Adjusted SpinCo Stock Value and (B) the Post-Separation Rayonier Stock Value. 
 “Rayonier Welfare
Plan” shall mean any Welfare Plan established, sponsored, maintained or contributed to by Rayonier or any of its Subsidiaries for the benefit of Employees or Former Employees, including each Welfare Plan listed on Schedule 1.01(c)
but excluding the Rayonier Executive Severance Pay Plan and any SpinCo Welfare Plan. 
 “Record Date” shall have the
meaning set forth in the Separation and Distribution Agreement. 
 “Requesting Party” shall have the meaning set forth in
Section 2.02(b). 
 “Securities Act” shall mean the U.S. Securities Act of 1933, as amended, together with the
rules and regulations promulgated thereunder. 
 “Separation” shall have the meaning set forth in the recitals to this
Agreement. 
 “Separation and Distribution Agreement” shall have the meaning set forth in the recitals to this Agreement.

 “SpinCo” shall have the meaning set forth in the preamble to this Agreement. 

“SpinCo Awards” shall mean SpinCo Options, SpinCo Restricted Stock Awards, SpinCo Performance Share Awards and SpinCo
Time-Vested Awards, collectively. 
 “SpinCo Benefit Plan” shall mean any Benefit Plan established, sponsored, maintained
or contributed to by a member of the SpinCo Group as of or after the Effective Time, including any SpinCo Retained Plan. 
 “SpinCo
Board” shall mean the Board of Directors of SpinCo. 

  
 -6- 

 “SpinCo Business” shall have the meaning set forth in the Separation and
Distribution Agreement. 
 “SpinCo Change of Control” shall have the meaning set forth in Section 4.02(d). 

“SpinCo Compensation Committee” shall mean the Compensation Committee of the SpinCo Board. 

“SpinCo Designees” shall have the meaning set forth in the Separation and Distribution Agreement. 

“SpinCo Equity Plan” shall mean the SpinCo 2014 Equity Incentive Plan. 

“SpinCo Group” shall have the meaning set forth in the Separation and Distribution Agreement. 

“SpinCo Group Employees” shall have the meaning set forth in Section 3.01(a). 

“SpinCo HSA” shall have the meaning set forth in Section 7.01(c). 

“SpinCo Liability” shall have the meaning set forth in the Separation and Distribution Agreement. 

“SpinCo Non-Equity Incentive Plan” shall mean the SpinCo Non-Equity Incentive Plan established pursuant to
Section 4.03(a). 
 “SpinCo Nonqualified Plan” shall mean the SpinCo Excess Benefit Plan and the SpinCo Excess
Savings and Deferred Compensation Plan, collectively. 
 “SpinCo Option” shall mean an option to purchase SpinCo Shares
granted by SpinCo pursuant to the SpinCo Equity Plan in accordance with Section 4.02(b). 
 “SpinCo Outside
Directors’ Compensation Program” shall mean the SpinCo Outside Directors’ Compensation Program established pursuant to Section 4.05(a). 

“SpinCo Pension Plan” shall mean the Retirement Plan for Salaried Employees of SpinCo Inc. 

“SpinCo Pension Trust” shall have the meaning set forth in Section 5.01(a). 

“SpinCo Performance Share Award” shall mean a performance share award granted pursuant to the SpinCo Equity Plan and a SpinCo
Performance Share Award Program thereunder in accordance with Section 4.02(c). 
 “SpinCo Ratio” shall mean the
quotient obtained by dividing the Rayonier Stock Value by the SpinCo Stock Value. 
 “SpinCo Restricted Stock Award” shall
mean a restricted stock award granted pursuant to the SpinCo Equity Plan in accordance with Section 4.02(a). 

  
 -7- 

 “SpinCo Retained Bonus Plans” shall have the meaning set forth in
Section 4.03(b). 
 “SpinCo Retained Pension Plans” shall have the meaning set forth in
Section 5.02. 
 “SpinCo Retained Plan” means a SpinCo Retained Bonus Plan, SpinCo Retained Pension Plan,
SpinCo Retained Savings Plan or SpinCo Retained Welfare Plan. 
 “SpinCo Retained Savings Plans” shall have the meaning set
forth in Section 5.04. 
 “SpinCo Retained Welfare Plans” shall have the meaning set forth in
Section 7.08. 
 “SpinCo Savings Plan” shall mean the SpinCo Investment and Savings Plan for Salaried
Employees. 
 “SpinCo Share Fund” shall have the meaning set forth in Section 5.03(c). 

“SpinCo Shares” shall have the meaning set forth in the Separation and Distribution Agreement. 

“SpinCo Stock Value” shall mean the simple average of the volume weighted average per-share price of SpinCo Shares trading on
the NYSE during each of the first ten (10) full Trading Sessions immediately after the Effective Time. 
 “SpinCo Time-Vested
Award” shall mean a time-vested equity award granted pursuant to the SpinCo Equity Plan in accordance with Section 4.02(c)(ii)(B). 

“SpinCo Value Factor” shall mean the quotient obtained by dividing (i) the Rayonier Stock Value by (ii) the sum of
(A) the SpinCo Stock Value and (B) the quotient obtained by dividing the Post-Separation Rayonier Stock Value by the Distribution Ratio. 

“SpinCo Welfare Plans” shall mean the Welfare Plans established, sponsored, maintained or contributed to by any member of the
SpinCo Group for the benefit of SpinCo Group Employees and Former SpinCo Group Employees, including any SpinCo Retained Welfare Plans. 

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

“Third Party” shall have the meaning set forth in the Separation and Distribution Agreement. 

“Trading Session” shall mean the period of time during any given calendar day, commencing with the determination of the
opening price on the NYSE and ending with the determination of the closing price on the NYSE, in which trading in Rayonier Shares or SpinCo Shares (as applicable) is permitted on the NYSE. 

“Transferred Account Balances” shall have the meaning set forth in Section 7.01(d). 

  
 -8- 

 “Transferred Director” shall have the meaning set forth in
Section 4.05(a). 
 “Transition Services Agreement” shall have the meaning set forth in the Separation and
Distribution Agreement. 
 “U.S.” shall mean the United States of America. 

“Welfare Benefit Continuation Period” shall mean a period of time commencing as of the Distribution Date and ending on
December 31, 2014. 
 “Welfare Plan” shall mean any “welfare plan” (as defined in Section 3(1) of
ERISA) or a “cafeteria plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental, vision, mental health, substance abuse and
retiree health), disability benefits, or life, accidental death and dismemberment, and business travel insurance, pre-tax premium conversion benefits, dependent care assistance programs, employee assistance programs, paid time-off programs,
contribution funding toward a health savings account, flexible spending accounts or cashable credits. 
 Section 1.02.
Interpretation. (a) Section 10.16 of the Separation and Distribution Agreement is hereby incorporated by reference. 
 ARTICLE II

 GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 

Section 2.01. General Principles. 

(a) Acceptance and Assumption of SpinCo Liabilities. On or prior to the Effective Time, but in any case prior to the Distribution,
SpinCo and the applicable SpinCo Designees shall accept, assume and agree to faithfully perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms (each of which shall be considered a SpinCo Liability),
regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such Liabilities are asserted or determined
(including any Liabilities arising out of claims made by Rayonier’s or SpinCo’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the Rayonier Group or the SpinCo Group)
or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the Rayonier Group or the SpinCo
Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates: 

(i) any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), commissions, bonuses
and any other employee compensation or benefits payable to or on behalf of any SpinCo Group Employees and Former SpinCo Group Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation, commissions,
bonuses or other employee compensation or benefits are or may have been earned; 

  
 -9- 

 (ii) any and all Liabilities whatsoever with respect to claims made by or with
respect to any SpinCo Group Employees or Former SpinCo Group Employees in connection with any Benefit Plan not retained or assumed by any member of the Rayonier Group pursuant to this Agreement, the Separation and Distribution Agreement or any
Ancillary Agreement; and 
 (iii) any and all Liabilities expressly assumed or retained by any member of the SpinCo Group
pursuant to this Agreement. 
 (b) Acceptance and Assumption of Rayonier Liabilities. On or prior to the Effective Time, but in any
case prior to the Distribution, Rayonier and certain members of the Rayonier Group designated by Rayonier shall accept, assume and agree to faithfully perform, discharge and fulfill all of the following Liabilities held by SpinCo or any SpinCo
Designee and Rayonier and the applicable members of the Rayonier Group shall be responsible for such Liabilities in accordance with their respective terms (each of which shall be considered a Rayonier Liability), regardless of when or where such
Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such Liabilities are asserted or determined (including any Liabilities arising out of
claims made by Rayonier’s or SpinCo’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the Rayonier Group or the SpinCo Group) or whether asserted or determined prior to
the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the Rayonier Group or the SpinCo Group, or any of their respective directors,
officers, Employees, Former Employees, agents, Subsidiaries or Affiliates: 
 (i) any and all wages, salaries, incentive
compensation (as the same may be modified by this Agreement), commissions, bonuses and any other employee compensation or benefits payable to or on behalf of any Rayonier Group Employees and Former Rayonier Group Employees after the Effective Time,
without regard to when such wages, salaries, incentive compensation, commissions, bonuses or other employee compensation or benefits are or may have been earned; 

(ii) any and all Liabilities whatsoever with respect to claims made by or with respect to any Rayonier Group Employees or
Former Rayonier Group Employees in connection with any Benefit Plan not retained or assumed by any member of the SpinCo Group pursuant to this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement; and 

(iii) any and all Liabilities expressly assumed or retained by any member of the Rayonier Group pursuant to this Agreement.

 (c) Unaddressed Liabilities. To the extent that this Agreement does not address particular Liabilities under any Benefit Plan and
the Parties later determine that they should be allocated in connection with the Distribution, the Parties shall agree in good faith on the allocation, taking into account the handling of comparable Liabilities under this Agreement. 

  
 -10- 

 Section 2.02. Service Credit. 

(a) Service for Eligibility, Vesting and Benefit Purposes. The SpinCo Benefit Plans shall, and SpinCo shall cause each member of the
SpinCo Group to, recognize each SpinCo Group Employee’s and each Former SpinCo Group Employee’s full service with Rayonier or any of its Subsidiaries or predecessor entities at or before the Effective Time, to the same extent that such
service was credited by Rayonier for similar purposes prior to the Effective Time as if such full service had been performed for a member of the SpinCo Group, for purposes of eligibility, vesting and determination of level of benefits under any such
SpinCo Benefit Plan. 
 (b) Evidence of Prior Service. Notwithstanding anything in this Agreement to the contrary,
but subject to Section 3.02 and applicable Law, upon reasonable request by either Party (the “Requesting Party”), the other Party (the “Providing Party”) will provide to the Requesting Party copies of
any records available to the Providing Party to document the service, plan participation and membership of former Employees of the Providing Party who are then Employees of the Requesting Party, and will cooperate with the Requesting Party to
resolve any discrepancies or obtain any missing data for purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any such Employee. 

Section 2.03. Benefit Plans. 

(a) Establishment of Plans. Before the Effective Time, SpinCo shall, or shall cause an applicable member of the SpinCo
Group to, adopt Benefit Plans (and related trusts, if applicable), with terms comparable (or such other standard as is specified in this Agreement with respect to any particular Benefit Plan) to those of the corresponding Rayonier Benefit Plans,
including in particular those listed on Schedule 2.03(a); provided, however, that SpinCo may limit participation in any such SpinCo Benefit Plan to SpinCo Group Employees and Former SpinCo Group Employees who participated in the
corresponding Rayonier Benefit Plan immediately prior to the Effective Time. 
 (b) Information and Operation. Rayonier shall provide
SpinCo with information describing each Rayonier Benefit Plan election made by a SpinCo Group Employee or Former SpinCo Group Employee that may have application to SpinCo Benefit Plans from and after the Effective Time, and SpinCo shall use its
commercially reasonable efforts to administer the SpinCo Benefit Plans using those elections. Each Party shall, upon reasonable request, provide the other Party and the other Party’s respective Affiliates, agents, and vendors all information
reasonably necessary to the other Party’s operation or administration of its Benefit Plans. 
 (c) No Duplication or Acceleration of
Benefits. Notwithstanding anything to the contrary in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement, no participant in any SpinCo Benefit Plan shall receive service credit or benefits to the extent
that receipt of such service credit or benefits would result in duplication of benefits provided to such participant by the corresponding Rayonier Benefit Plan or any other plan, program or arrangement sponsored or maintained by a member of the
Rayonier Group. Furthermore, unless expressly provided for in this Agreement, the Separation and Distribution Agreement or in any Ancillary Agreement or required by applicable Law, no provision in this Agreement shall be construed to create any
right to accelerate vesting or entitlements under any compensation or 

  
 -11- 

 
Benefit Plan, program or arrangement sponsored or maintained by a member of the Rayonier Group or member of the SpinCo Group on the part of any Employee or Former Employee. 

(d) No Expansion of Participation. Unless otherwise expressly provided in this Agreement, as otherwise determined or agreed to by
Rayonier and SpinCo, as required by applicable Law, or as explicitly set forth in a SpinCo Benefit Plan, a SpinCo Group Employee or Former SpinCo Group Employee shall be entitled to participate in the SpinCo Benefit Plans at the Effective Time only
to the extent that such SpinCo Group Employee or Former SpinCo Group Employee was entitled to participate in the corresponding Rayonier Benefit Plan as in effect immediately prior to the Effective Time (to the extent that such SpinCo Group Employee
or Former SpinCo Group Employee does not participate in the respective SpinCo Benefit Plan immediately prior to the Effective Time), it being understood that this Agreement does not expand (i) the number of SpinCo Group Employees or Former
SpinCo Group Employees entitled to participate in any SpinCo Benefit Plan or (ii) the participation rights of SpinCo Group Employees or Former SpinCo Group Employees in any SpinCo Benefit Plans beyond the rights of such SpinCo Group Employees
or Former SpinCo Group Employees under the corresponding Rayonier Benefit Plans, in each case, after the Effective Time. 
 (e)
Transition Services. The Parties acknowledge that the Rayonier Group or the SpinCo Group may provide administrative services for certain of the other Party’s compensation and benefit programs for a transitional period under the terms of
the Transition Services Agreement. The Parties agree to enter into a business associate agreement (if required by HIPAA or other applicable health information privacy Laws) in connection with such Transition Services Agreement. 

(f) Beneficiaries. References to Rayonier Group Employees, Former Rayonier Group Employees, SpinCo Group Employees, Former SpinCo Group
Employees, and non-employee directors of either Rayonier or SpinCo (including Transferred Directors), shall be deemed to refer to their beneficiaries, dependents, survivors and alternate payees, as applicable. 

Section 2.04. Individual Agreements. 

(a) Assignment by Rayonier. To the extent necessary, Rayonier shall assign, or cause an applicable member of the Rayonier Group to
assign, to SpinCo or another member of the SpinCo Group, as designated by SpinCo, all Individual Agreements, with such assignment to be effective as of the Effective Time; provided, however, that to the extent that assignment of any
such Individual Agreement is not permitted by the terms of such agreement or by applicable Law, effective as of the Effective Time, each member of the SpinCo Group shall be considered to be a successor to each member of the Rayonier Group for
purposes of, and a third-party beneficiary with respect to, such Individual Agreement, such that each member of the SpinCo Group shall enjoy all of the rights and benefits under such agreement (including rights and benefits as a third-party
beneficiary), with respect to the business operations of the SpinCo Group; provided, further, that in no event shall Rayonier be permitted to enforce any Individual Agreement (including any agreement containing non-competition or
non-solicitation covenants) against a SpinCo Group Employee or Former SpinCo Group Employee for action taken in such individual’s capacity as a SpinCo Group Employee or Former SpinCo Group Employee. 

  
 -12- 

 (b) Assumption by SpinCo. Effective as of the Effective Time, SpinCo will assume and
honor, or will cause a member of the SpinCo Group to assume and honor, any individual agreement to which any SpinCo Group Employee or Former SpinCo Group Employee is party with any member of the Rayonier Group, including any Individual Agreement.

 Section 2.05. Collective Bargaining. Effective no later than immediately prior to the Effective Time, to the extent necessary,
SpinCo shall cause the appropriate member of the SpinCo Group to (a) assume all collective bargaining agreements (including any national, sector or local collective bargaining agreement) that cover SpinCo Group Employees or Former SpinCo Group
Employees and the Liabilities arising under any such collective bargaining agreements, and (b) join any industrial, employer or similar association or federation if membership is required for the relevant collective bargaining agreement to
continue to apply. 
 Section 2.06. Non-U.S. Regulatory Compliance. Rayonier shall have the authority to adjust the treatment
described in this Agreement with respect to SpinCo Group Employees who are located outside of the United States in order to ensure compliance with the applicable laws or regulations of countries outside of the United States or to preserve the tax
benefits provided under local tax law or regulation before the Distribution. 
 ARTICLE III 

ASSIGNMENT OF EMPLOYEES 
 Section
3.01. Active Employees. 
 (a) Assignment and Transfer of Employees. Effective no later than immediately prior to the Effective
Time and except as otherwise agreed by the Parties and subject to Section 3.01(b), (i) the applicable member of the Rayonier Group shall have taken such actions as are necessary to ensure that each individual who is intended to be
an employee of the SpinCo Group as of immediately after the Effective Time (including any such individual who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence approved by the Rayonier Human
Resources department or otherwise taken in accordance with applicable Law) (collectively, the “SpinCo Group Employees”) is employed by a member of the SpinCo Group as of immediately after the Effective Time, and (ii) the
applicable member of the Rayonier Group shall have taken such actions as are necessary to ensure that each individual who is intended to be an employee of the Rayonier Group as of immediately after the Effective Time (including any such individual
who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence approved by the Rayonier Human Resources department or otherwise taken in accordance with applicable Law) and any other individual employed by
the Rayonier Group as of the Effective Time who is not a SpinCo Group Employee (collectively, the “Rayonier Group Employees”) is employed by a member of the Rayonier Group as of immediately after the Effective Time. Each of the
Parties agrees to execute, and to seek to have the applicable Employees execute, such documentation, if any, as may be necessary to reflect such assignment and/or transfer. 

(b) Employees on Disability Leave. Any individual who is receiving short-term disability benefits pursuant to a Rayonier Welfare Plan
as of the Effective Time shall be considered to be a Rayonier Group Employee for all purposes under this Agreement unless and 

  
 -13- 

 
until such individual returns to work after the Effective Time, at which time such individual will be treated for all purposes under this Agreement as an Employee of the entity (Rayonier or
SpinCo, as applicable) by which such individual would have been employed immediately following the Effective Time had he or she not been on disability leave (without giving effect to this Section 3.01(b)); provided,
however, that any such individual who does not return to work prior to the first anniversary of the first day of such individual’s disability leave will be treated for all purposes under this Agreement as a Former Rayonier Group Employee
as of the date of such first anniversary. The Parties shall use commercially reasonable efforts to cooperate and share information in order to effectuate this Section 3.01(b). 

(c) At-Will Status. Nothing in this Agreement shall create any obligation on the part of any member of the Rayonier Group or any member
of the SpinCo Group to (i) continue the employment of any Employee or permit the return from a leave of absence for any period after the date of this Agreement (except as required by applicable Law) or (ii) change the employment status of
any Employee from “at-will,” to the extent that such Employee is an “at-will” employee under applicable Law. 
 (d)
Severance. The Parties acknowledge and agree that the Distribution and the assignment, transfer or continuation of the employment of Employees as contemplated by this Section 3.01 shall not be deemed an involuntary termination of
employment entitling any SpinCo Group Employee or Rayonier Group Employee to severance payments or benefits. 
 (e) Not a Change of
Control/Change in Control. The Parties acknowledge and agree that neither the consummation of the Distribution nor any transaction contemplated by this Agreement, the Separation and Distribution Agreement or any other Ancillary Agreement shall
be deemed a “change of control,” “change in control,” or term of similar import for purposes of any Benefit Plan sponsored or maintained by any member of the Rayonier Group or member of the SpinCo Group. 

(f) Payroll and Related Taxes. With respect to any SpinCo Group Employee or group of SpinCo Group Employees, the Parties shall, or
shall cause their respective Subsidiaries to, (i) treat SpinCo (or the applicable member of the SpinCo Group) as a “successor employer” and Rayonier (or the applicable member of the Rayonier Group) as a “predecessor,” within
the meaning of Sections 3121(a)(1) and 3306(b)(1) of the Code, for purposes of taxes imposed under the United States Federal Insurance Contributions Act, as amended (“FICA”), or the United States Federal Unemployment Tax Act, as
amended (“FUTA”), (ii) cooperate with each other to avoid, to the extent possible, the restart of FICA and FUTA upon or following the Effective Time with respect to each such SpinCo Group Employee for the tax year during which
the Effective Time occurs, and (iii) use commercially reasonably efforts to implement the alternate procedure described in Section 5 of Revenue Procedure 2004-53; provided, however that, to the extent that SpinCo (or the
applicable member of the SpinCo Group) cannot be treated as a “successor employer” to Rayonier (or the applicable member of the Rayonier Group) within the meaning of Sections 3121(a)(1) and 3306(b)(1) of the Code with respect to any SpinCo
Group Employee or group of SpinCo Group Employees, (x) with respect to the portion of the tax year commencing on January 1, 2014 and ending on the Distribution Date, Rayonier will (A) be responsible for all payroll obligations, tax
withholding and reporting obligations for such SpinCo Group Employees and (B) furnish a Form W-2 or similar earnings statement to all such SpinCo Group Employees for 

  
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such period, and (y) with respect to the remaining portion of such tax year, SpinCo will (A) be responsible for all payroll obligations, tax withholding and reporting obligations
regarding such SpinCo Group Employees and (B) furnish a Form W-2 or similar earnings statement to all such SpinCo Group Employees. 

Section 3.02. No-Hire and Non-Solicitation. Each Party agrees that, for a period of two years from the Distribution Date, such Party
shall not hire or solicit for employment any individual who is a Rayonier Group Employee, in the case of SpinCo, or a SpinCo Group Employee, in the case of Rayonier; provided, however, that, without limiting the generality of the
foregoing prohibition on solicitation and hiring Employees of the other Party, this Section 3.02 shall not prohibit (a) generalized solicitations that are not directed to specific Persons or Employees of the other Party,(b) the
solicitation and hiring of a Person whose employment was involuntarily terminated by the other Party, or (c) the solicitation and hiring of a Person after receipt by the soliciting Party (in advance of any solicitation or, in the case of a
response to a general solicitation as permitted under clause (a) above, in advance of any subsequent solicitation in connection with the recruiting process) of the express written consent of the senior Human Resources executive of the Party
that employs the Person who is to be solicited and/or hired. Except as provided in clause (b) above with respect to involuntary terminations, without regard to the use of the term “Employee” or “employs,” the restrictions
under this Section 3.02 shall be applicable to (i) Rayonier Group Employees whose employment terminates after the Effective Time, and (ii) SpinCo Group Employees whose employment terminates after the Effective Time, in each
case, until the date that is six months after such Employee’s last date of employment with Rayonier or SpinCo, as applicable. For the avoidance of doubt, the restrictions under this Section 3.02 shall not apply to Former Rayonier
Group Employees or Former SpinCo Group Employees whose most recent employment with Rayonier and its Subsidiaries was terminated prior to the Effective Time. 

ARTICLE IV 
 EQUITY, INCENTIVE AND
EXECUTIVE COMPENSATION 
 Section 4.01. Generally. Each Rayonier Award granted that is outstanding as of immediately prior to the
Effective Time shall be adjusted as described below; provided, however, that, effective immediately prior to the Effective Time, the Rayonier Compensation Committee may provide for different adjustments with respect to some or all
Rayonier Awards to the extent that the Rayonier Compensation Committee deems such adjustments necessary and appropriate. Any adjustments made by the Rayonier Compensation Committee pursuant to the foregoing sentence shall be deemed incorporated by
reference herein as if fully set forth below and shall be binding on the Parties and their respective Affiliates. Before the Effective Time, the SpinCo Equity Plan shall be established, with such terms as are necessary to permit the implementation
of the provisions of Section 4.02. 
 Section 4.02. Equity Incentive Awards. 

(a) Restricted Stock. Each holder of an outstanding Rayonier Restricted Stock Award immediately prior to the Effective Time shall
receive, as of the Effective Time, a SpinCo Restricted Stock Award for such number of shares as determined by applying the Distribution Ratio in the same way as if the outstanding Rayonier Restricted Stock Award comprised fully

  
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vested Rayonier Shares as of the Effective Time. Except as set forth in this Section 4.02, the Post-Separation Rayonier Restricted Stock Award and the SpinCo Restricted Stock Award
issued in accordance with this Section 4.02 both shall be subject to the same terms and conditions (including with respect to vesting) immediately after the Effective Time as were applicable to the Rayonier Restricted Stock Award
immediately prior to the Effective Time (except as otherwise provided herein, including in Sections 4.02(d) and (e)). 

(b) Stock Options. Each Rayonier Option that is outstanding immediately prior to the Effective Time, regardless of by whom held, shall
be converted as of the Effective Time into both a Post-Separation Rayonier Option and a SpinCo Option and shall, except as otherwise provided in this Section 4.02, be subject to the same terms and conditions (including with respect to
vesting and expiration) after the Effective Time as were applicable to such Rayonier Option immediately prior to the Effective Time (except as otherwise provided herein, including in Sections 4.02(d) and (e)); provided,
however, that from and after the Effective Time: 
 (i) the number of Rayonier Shares subject to such Post-Separation
Rayonier Option, rounded down to the nearest whole share, shall be equal to the product obtained by multiplying (A) the number of Rayonier Shares subject to the corresponding Rayonier Option immediately prior to the Effective Time by
(B) the Rayonier Value Factor; 
 (ii) the number of SpinCo Shares subject to such SpinCo Option, rounded down to the
nearest whole share, shall be equal to the product obtained by multiplying (A) the number of Rayonier Shares subject to the corresponding Rayonier Option immediately prior to the Effective Time by (B) the SpinCo Value Factor; 

(iii) the per share exercise price of such Post-Separation Rayonier Option, rounded up to the nearest hundredth of a cent,
shall be equal to the quotient obtained by dividing (A) the per share exercise price of the corresponding Rayonier Option immediately prior to the Effective Time by (B) the Rayonier Ratio; and 

(iv) the per share exercise price of such SpinCo Option, rounded up to the nearest hundredth of a cent, shall be equal to the
quotient obtained by dividing (A) the per share exercise price of the corresponding Rayonier Option immediately prior to the Effective Time by (B) the SpinCo Ratio. 

Notwithstanding anything to the contrary in this Section 4.02(b), the exercise price, the number of Rayonier Shares and SpinCo Shares subject to
each Post-Separation Rayonier Option and SpinCo Option, and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Section 409A of the Code. 

(c) Performance Share Awards. 

(i) As of the Effective Time, each Rayonier Performance Share Award granted in 2012 shall be converted into a Post-Separation Rayonier
Performance Share Award and a SpinCo Performance Share Award and each such award shall be subject to the same terms and conditions (including with respect to vesting and applicable performance criteria) after the Effective Time as were applicable to
such Rayonier Performance Share Award prior to the 

  
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Effective Time (except as otherwise provided herein, including in Sections 4.02(d) and (e)); provided, however, that: 

(A) payment, if any, shall be made in Rayonier Shares (with respect to the Post-Separation Rayonier Performance Share Award)
and SpinCo Shares (with respect to the SpinCo Performance Share Award); 
 (B) the number of shares subject to (1) such
Post-Separation Rayonier Performance Share Award shall be equal to the number of Rayonier Shares subject to the corresponding Rayonier Performance Share Award immediately prior to the Effective Time, and (2) such SpinCo Performance Share Award
shall be equal to (x) the number of Rayonier Shares subject to the Rayonier Performance Share Award immediately prior to the Effective Time multiplied by (y) the Distribution Ratio, rounded down to the nearest whole share; 

(C) dividends taken into account for purposes of (1) determining the value of dividend equivalent accounts or
(2) the reinvestment of dividends in the calculation of total shareholder return, shall be any cash dividends paid on Rayonier Shares during the performance period and any cash dividends paid on SpinCo Shares during the portion of the
performance period occurring after the Effective Time; 
 (D) the stock price at the end of the performance period used to
determine stock price appreciation shall be the sum of (1) the closing price per share of Rayonier Shares on the NYSE during the 20 trading days preceding December 31, 2014, and (2) the closing price per share of SpinCo Shares on the
NYSE during the 20 trading days preceding December 31, 2014 multiplied by the Distribution Ratio; and 
 (E) any
determination as to the treatment, upon an Employee’s retirement, of the Post-Separation Rayonier Performance Share Award and SpinCo Performance Share Award granted to such Employee pursuant to the Rayonier Equity Plan or the SpinCo Equity
Plan, as applicable, and this Section 4.02(c)(i), shall be made by the Compensation Committee of the Board of Directors of the Party that directly or indirectly employs such Employee immediately after the Effective Time (Rayonier or
SpinCo, as applicable); provided, that any such determination shall apply uniformly to both the Post-Separation Rayonier Performance Share Award and the SpinCo Performance Share Award held by such Employee. 

(ii) As of the Effective Time, each Rayonier Performance Share Award granted in 2013 shall be cancelled in its entirety and replaced with a
new award as follows: 
 (A) each Rayonier Performance Share Award granted in 2013 and held by a Rayonier Group Employee
immediately prior to the Effective Time shall be replaced with a Post-Separation Rayonier Time-Vested Award. The number of shares subject to such Post-Separation Rayonier Time-Vested Award shall be equal to (1) the fair market value (at the
target level of performance) of the corresponding Rayonier Performance Share Award on the date that it was originally granted (as reflected in Rayonier’s records), divided by (2) the Post-Separation Rayonier Stock Value. Such

  
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Post-Separation Rayonier Time-Vested Award shall vest in full on the second anniversary of the Distribution Date, subject to such Rayonier Group Employee’s continued employment with Rayonier
through such second anniversary or such earlier date as is provided in the award agreement governing such Post-Separation Rayonier Time-Vested Award or otherwise determined by the Rayonier Compensation Committee following the Effective Time; and

 (B) each Rayonier Performance Share Award granted in 2013 and held by a SpinCo Group Employee immediately prior to the
Effective Time shall be replaced with a SpinCo Time-Vested Award. The number of shares subject to such SpinCo Time-Vested Award shall be equal to (1) the fair market value (at the target level of performance) of the corresponding Rayonier
Performance Share Award on the date that it was originally granted (as reflected in Rayonier’s records), divided by (2) the SpinCo Stock Value. Such SpinCo Time-Vested Award shall vest in full on the second anniversary of the Distribution
Date, subject to such SpinCo Group Employee’s continued employment with SpinCo through such second anniversary or such earlier date as is provided in the award agreement governing such SpinCo Time-Vested Award or otherwise determined by the
SpinCo Compensation Committee following the Effective Time. 
 (iii) As of the Effective Time, each Rayonier Performance Share Award
granted in 2014 shall be cancelled in its entirety and replaced with a new award as follows: 
 (A) each Rayonier
Performance Share Award granted in 2014 and held by a Rayonier Group Employee immediately prior to the Effective Time shall be replaced with a Post-Separation Rayonier Performance Share Award. The number of shares subject to such Post-Separation
Rayonier Performance Share Award shall be equal to (1) the fair market value (at the target level of performance) of the corresponding Rayonier Performance Share Award on the date that it was originally granted (as reflected in Rayonier’s
records), divided by (2) the Post-Separation Rayonier Stock Value. Such Post-Separation Rayonier Performance Share Award shall be subject to such terms and conditions as are determined by the Rayonier Compensation Committee prior to the
Distribution Date; provided, that (x) such Post-Separation Rayonier Performance Share Award shall be denominated only in Rayonier Shares (and cash in respect of any dividend equivalents thereon), and (y) the applicable performance
period shall end on December 31, 2016; and 
 (B) each Rayonier Performance Share Award granted in 2014 and held by a
SpinCo Group Employee immediately prior to the Effective Time shall be replaced with a SpinCo Performance Share Award. The number of shares subject to such SpinCo Performance Share Award shall be equal to (1) the fair market value (at the
target level of performance) of the corresponding Rayonier Performance Share Award on the date that it was originally granted (as reflected in Rayonier’s records) divided by (2) the SpinCo Stock Value. Such SpinCo Performance Share Award
shall be subject to such terms and conditions as are determined by the SpinCo Compensation Committee; provided, that (x) such SpinCo Performance Share Award shall be denominated in SpinCo Shares (and cash in respect of dividend
equivalents thereon), and (y) the applicable performance period shall end on December 31, 2016. 

  
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 (d) Miscellaneous Award Terms. With respect to Post-Separation Rayonier Awards and SpinCo
Awards, (i) employment with or service to the Rayonier Group shall be treated as employment with and service to SpinCo with respect to SpinCo Awards held by Rayonier Group Employees or Rayonier non-employee directors, and (ii) employment
with or service to the SpinCo Group shall be treated as employment with or service to Rayonier with respect to Post-Separation Rayonier Awards held by SpinCo Group Employees or Transferred Directors. In addition, none of the Separation, the
Distribution or any employment transfer described in Section 3.01(a) shall constitute a termination of employment for any Employee for purposes of any Post-Separation Rayonier Award or any SpinCo Award. After the Effective Time, for any
award adjusted under this Section 4.02, any reference to a “change in control,” “change of control” or similar definition in an award agreement, employment agreement or Rayonier Equity Plan applicable to such award
(A) with respect to Post-Separation Rayonier Awards, shall be deemed to refer to a “change in control,” “change of control” or similar definition as set forth in the applicable award agreement, employment agreement or
Rayonier Equity Plan (a “Rayonier Change of Control”), and (B) with respect to SpinCo Awards, shall be deemed to refer to a “Change in Control” as defined in the SpinCo Equity Plan (a “SpinCo Change of
Control”). Without limiting the foregoing, with respect to provisions related to vesting of awards, a Rayonier Change of Control shall be treated as a SpinCo Change of Control for purposes of SpinCo Awards held by Rayonier Group Employees,
Former Rayonier Group Employees and Rayonier non-employee directors, and a SpinCo Change of Control shall be treated as a Rayonier Change of Control for purposes of Post-Separation Rayonier Awards held by SpinCo Group Employees, Former SpinCo Group
Employees and Transferred Directors. 
 (e) Equity Plan Restrictive Covenants. Without limiting the generality of
Section 2.04(a), effective as of the Effective Time, to the extent permitted under applicable Law, each member of the SpinCo Group shall be considered to be a successor to each member of the Rayonier Group for purposes of, and a
third-party beneficiary with respect to, the restrictive covenants (including non-competition covenants) contained in the Rayonier Equity Plans and award agreements thereunder (only to the extent that such agreements are not assigned to SpinCo in
accordance with Section 2.04), such that each member of the SpinCo Group shall enjoy all of the rights and benefits under such arrangements (including rights and benefits as a third-party beneficiary), with respect to the business
operations of the SpinCo Group; provided, that from and after the Distribution Date, in no event shall Rayonier or any member of the Rayonier Group be permitted to enforce any restrictive covenant (including non-competition covenants) in the
Rayonier Equity Plan or any award agreement thereunder against a SpinCo Group Employee or Former SpinCo Group Employee for action taken in such individual’s capacity as a SpinCo Group Employee or Former SpinCo Group Employee. 

(f) Tax Reporting and Withholding. 

(i) Except as otherwise provided in this Section 4.02(f), after the Effective Time, Post-Separation Rayonier Awards, regardless of
by whom held, shall be settled by Rayonier, and SpinCo Awards, regardless of by whom held, shall be settled by SpinCo. 
 (ii) Upon the
vesting of SpinCo Awards, SpinCo shall be solely responsible for ensuring the satisfaction of all applicable tax withholding requirements on behalf of each SpinCo Group Employee or Former SpinCo Group Employee and for ensuring the

  
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collection and remittance of employee withholding taxes to the Rayonier Group with respect to each Rayonier Group Employee or Former Rayonier Group Employee (with Rayonier Group being responsible
for remittance of the applicable employee taxes and payment and remittance of the applicable employer taxes relating to Rayonier Group Employees and Former Rayonier Group Employees to the applicable Governmental Authority). Upon the vesting of
Post-Separation Rayonier Awards, Rayonier shall be solely responsible for ensuring the satisfaction of all applicable tax withholding requirements on behalf of each Rayonier Group Employee or Former Rayonier Group Employee and for ensuring the
collection and remittance of employee withholding taxes to the SpinCo Group with respect to each SpinCo Group Employee or Former SpinCo Group Employee (with SpinCo Group being responsible for remittance of the applicable employee taxes and payment
and remittance of the applicable employer taxes relating to SpinCo Group Employees and Former SpinCo Group Employees to the applicable Governmental Authority). Following the Effective Time, Rayonier shall be responsible for all income tax reporting
in respect of Post-Separation Rayonier Awards and SpinCo Awards held by Rayonier Group Employees, Former Rayonier Group Employees and individuals who are or were Rayonier non-employee directors, and SpinCo will be responsible for all income tax
reporting in respect of Post-Separation Rayonier Awards and SpinCo Awards held by SpinCo Group Employees, Former SpinCo Group Employees and Transferred Directors. 

(iii) SpinCo shall be responsible for the settlement of cash dividend equivalents on any Post-Separation Rayonier Awards or SpinCo Awards
held by a SpinCo Group Employee, Former SpinCo Group Employee or Transferred Director. Prior to the date any such settlement is due, Rayonier shall pay SpinCo in cash amounts required to settle (A) any dividend equivalents with respect to
Post-Separation Rayonier Awards and (B) any dividend equivalents accrued prior to the Effective Time with respect to SpinCo Awards. Rayonier shall be responsible for the settlement of cash dividends equivalents on any Post-Separation Rayonier
Awards or SpinCo Awards held by a Rayonier Group Employee, Former Rayonier Group Employee or non-employee director of Rayonier. Prior to the date any such settlement is due, SpinCo shall pay Rayonier in cash amounts required to settle any dividend
equivalents accrued following the Effective Time with respect to SpinCo Awards. 
 (iv) Following the Effective Time, if any
Post-Separation Rayonier Award held by a SpinCo Group Employee, Former SpinCo Group Employee or Transferred Director shall fail to become vested, such Post-Separation Rayonier Award shall be forfeited to Rayonier, and if any SpinCo Award held by a
Rayonier Group Employee, Former Rayonier Group Employee or non-employee director of Rayonier shall fail to become vested, such SpinCo Award shall be forfeited to SpinCo. 

(g) Cooperation. Each of the Parties shall establish an appropriate administration system in order to administer, in an orderly manner,
(i) exercises of vested Post-Separation Rayonier Options and SpinCo Options, (ii) the vesting and forfeiture of unvested Post-Separation Rayonier Awards and SpinCo Awards, and (iii) the withholding and reporting requirements with
respect to all awards. Each of the Parties shall work together to unify and consolidate all indicative data and payroll and employment information on regular timetables and make certain that each applicable Person’s data and records in respect
of such awards are correct and updated on a timely basis. The foregoing shall include employment status and information required for vesting and forfeiture of awards and tax withholding/remittance, compliance with

  
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trading windows and compliance with the requirements of the Exchange Act and other applicable Laws. 

(h) Registration and Other Regulatory Requirements. SpinCo agrees to file Forms S-1, S-3 and S-8 registration statements with respect
to, and to cause to be registered pursuant to the Securities Act, the SpinCo Shares authorized for issuance under the SpinCo Equity Plan, as required pursuant to the Securities Act, before the date of issuance of any SpinCo Shares pursuant to the
SpinCo Equity Plan. The Parties shall take such additional actions as are deemed necessary or advisable to effectuate the foregoing provisions of this Section 4.02(h), including compliance with securities Laws and other legal
requirements associated with equity compensation awards in affected non-U.S. jurisdictions. Rayonier agrees to facilitate the adoption and approval of the SpinCo Equity Plan consistent with the requirements of Treasury Regulations
Section 1.162-27(f)(4)(iii). 
 Section 4.03. Non-Equity Incentive Plans. 

(a) Corporate Bonus Plans. 

(i) Before the Effective Time, SpinCo shall establish the SpinCo Non-Equity Incentive Plan, which, for not less than the Corporate Bonus
Continuation Period, shall have substantially the same terms as of immediately prior to the Effective Time as the Rayonier Non-Equity Incentive Plan with such changes to the applicable performance goals as may be necessary in order to reflect the
SpinCo Business following the Separation. Notwithstanding the foregoing, during the Corporate Bonus Continuation Period, SpinCo may make such changes, modifications or amendments to the SpinCo Non-Equity Incentive Plan as may be required by
applicable Law or as are necessary and appropriate to reflect the Separation, it being understood that any such changes, modifications or amendments shall not result in bonus award opportunities that are less favorable than those applicable under
the Rayonier Non-Equity Incentive Plan to the SpinCo Group Employees who were participants in the Rayonier Non-Equity Incentive Plan immediately prior to the Effective Time. 

(ii) In respect of any bonus award opportunities outstanding under the Rayonier Annual Corporate Bonus Program as of immediately prior to the
Effective Time, the Performance Period (as such term is defined in the Rayonier Annual Corporate Bonus Program) of such awards shall terminate as of immediately prior to the Effective Time and bonus awards shall be determined and paid in accordance
with the terms of the Rayonier Annual Corporate Bonus Program as of the Effective Time. As of the Effective Time, the Liability in respect of such bonus awards allocable to SpinCo Group Employees (or Former SpinCo Group Employees, as applicable)
shall be assumed by SpinCo. Rayonier and SpinCo shall pay the amounts awarded to their respective Employees no later than March 15 of the calendar year after the calendar year in which the Effective Time occurs, subject to each such
Employee’s continued employment with Rayonier or SpinCo (as applicable) through the date that such bonus awards are paid, except as otherwise determined by the Compensation Committee of the Board of Directors of such Employee’s employer.

 (iii) As soon as practicable after the Effective Time, (A) Rayonier shall grant to Rayonier Group Employees participating in the
Rayonier Annual Corporate Bonus 

  
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Program immediately prior to the Effective Time new bonus award opportunities with a Performance Period commencing as of the Distribution Date and ending as of the last day of the calendar year
in which the Effective Time occurs, which awards shall be paid based on the achievement of performance objectives established in accordance with the terms of the Rayonier Annual Corporate Bonus Program, and (B) SpinCo shall grant to SpinCo
Group Employees participating in the Rayonier Annual Corporate Bonus Program immediately prior to the Effective Time new bonus award opportunities with a Performance Period commencing as of the Effective Time and ending as of the last day of the
calendar year in which the Distribution occurs, which awards shall be paid based on the achievement of performance objectives established in accordance with the terms of the SpinCo Annual Corporate Bonus Program. 

(b) SpinCo Retained Bonus Plans. As of the Effective Time, the SpinCo Group shall continue to retain (or assume as necessary) each
incentive compensation plan listed on Schedule 4.03(b) and any other incentive plan for the exclusive benefit of SpinCo Group Employees and Former SpinCo Group Employees whether or not sponsored by the SpinCo Group (the “SpinCo
Retained Bonus Plans”), and, from and after the Effective Time, shall be solely responsible for all Liabilities thereunder; provided, however, that if a portion of the bonus award opportunity outstanding under any SpinCo
Retained Bonus Plan as of immediately prior to the Effective Time is based on the achievement of performance goals relating to the Rayonier Group as a whole, the determination of the level of achievement of such performance goals shall be measured
based on the performance of the Rayonier Group as of the Effective Time as determined by the Rayonier Compensation Committee. 
 (c)
Allocation of Liabilities. Except as otherwise provided in this Agreement, (i) the Rayonier Group shall be solely responsible for funding, paying and discharging all obligations relating to any annual incentive bonus awards under any
Rayonier annual incentive plan or other short-term compensation plan with respect to payments earned before, as of or after the Effective Time to Rayonier Group Employees or Former Rayonier Group Employees, and no member of the SpinCo Group shall
have any obligations with respect thereto; and (ii) the SpinCo Group shall be solely responsible for funding, paying and discharging all obligations relating to any annual incentive bonus awards under any SpinCo Group annual incentive plan or
other short-term incentive compensation plan (including the SpinCo Non-Equity Incentive Plan, the SpinCo Annual Corporate Bonus Plan and any SpinCo Retained Bonus Plan) with respect to payments made after the Effective Time to SpinCo Group Employees
or Former SpinCo Group Employees, and no member of the Rayonier Group shall have any obligations with respect thereto. 
 Section 4.04.
Executive Severance Plan and Trust. 
 (a) Executive Severance Pay Plan. Before the Effective Time, SpinCo shall, or shall
cause another member of the SpinCo Group to, establish the SpinCo Executive Severance Pay Plan, which, for not less than the General Continuation Period, shall have substantially the same terms as of immediately prior to the Effective Time as the
Rayonier Executive Severance Pay Plan. Notwithstanding the foregoing, during the General Continuation Period, SpinCo may make such changes, modifications or amendments to the SpinCo Executive Severance Pay Plan as may be required by applicable Law
or as are necessary and appropriate to reflect the Separation, it being understood that any such changes, modifications or amendments shall not result in benefits that are less favorable than those provided under the Rayonier Executive Severance Pay
Plan to the 

  
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SpinCo Group Employees who were participants in the Rayonier Executive Severance Pay Plan immediately prior to the Effective Time. During the General Continuation Period, the SpinCo Group
Employees who participated in the Rayonier Executive Severance Pay Plan immediately prior to the Effective Time shall be eligible to participate in the SpinCo Executive Severance Pay Plan as of the Effective Time at the same level and to the same
extent as they had participated in the Rayonier Executive Severance Pay Plan as of immediately prior to the Effective Time. 
 (b) Legal
Resources and Executive Severance Trusts. Before the Effective Time, SpinCo shall, or shall cause another member of the SpinCo Group to, adopt the SpinCo Legal Resources Trust and the SpinCo Executive Severance Trust, which, for not less than
the General Continuation Period, shall have substantially the same terms and conditions as the Rayonier Legal Resources Trust and the Rayonier Executive Severance Trust, respectively, each as in effect immediately prior to the Effective Time.
Notwithstanding the foregoing, during the General Continuation Period, SpinCo may make such changes, modifications or amendments to the SpinCo Legal Resources Trust and SpinCo Executive Severance Trust as may be required by applicable Law or as are
necessary and appropriate to reflect the Separation, it being understood that any such changes, modifications or amendments shall not result in benefits that are less favorable than those provided under the Rayonier Legal Resources Trust and the
Rayonier Executive Severance Trust, respectively, to the SpinCo Group Employees who were eligible for benefits under the Rayonier Legal Resources Trust and/or the Rayonier Executive Severance Trust immediately prior to the Effective Time. In
connection with the establishment by SpinCo of the SpinCo Executive Severance Pay Plan (and the cessation of participation by the SpinCo Group Employees in the Rayonier Executive Severance Pay Plan), as of or before the Effective Time, Rayonier
shall, or shall cause the (i) Rayonier Legal Resources Trust to, transfer funds to SpinCo or to the SpinCo Legal Resources Trust in an amount equal to the SpinCo Group’s pro rata share (determined based on the aggregate number of named
participants in each individual plan who are SpinCo Group Employees divided by the aggregate number of participants in all such plans) of the amount of funds in the Rayonier Legal Resources Trust as of the latest practicable date before the
Effective Time, and (ii) Rayonier Executive Severance Trust to, transfer funds to SpinCo or to the SpinCo Executive Severance Trust in an amount equal to the SpinCo Group’s pro rata share (determined based on the aggregate number of named
participants in each individual plan who are SpinCo Group Employees divided by the total number of participants in such plans) of the amount of funds in the Rayonier Executive Severance Trust as of the latest practicable date before the Effective
Time. From and after the Effective Time, the SpinCo Group and (A) the SpinCo Legal Resources Trust shall be responsible for all Liabilities relating to SpinCo Group Employeesthat would have been satisfied by the Rayonier Legal Resources Trust
had the Distribution not occurred, and neither any member of the Rayonier Group nor the Rayonier Legal Resources Trust shall have any Liabilities with respect thereto, and (B) the SpinCo Executive Severance Trust shall be responsible for all
Liabilities relating to SpinCo Group Employees that would have been satisfied by the Rayonier Executive Severance Trust had the Distribution not occurred, and neither any member of the Rayonier Group nor the Rayonier Executive Severance Trust shall
have any Liabilities with respect thereto. 
 Section 4.05. Director Compensation. 

(a) Establishment of SpinCo Outside Directors’ Compensation Plan. Before the Effective Time, SpinCo shall establish the SpinCo
Outside Directors’ Compensation Program, 

  
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including a cash deferral option in accordance with Section 409A of the Code, with substantially the same terms as of immediately prior to the Effective Time as the Rayonier Outside
Directors’ Compensation Program. Each SpinCo non-employee director as of the Effective Time who served on the Rayonier Board immediately prior to the Effective Time (a “Transferred Director”) but who will no longer serve on the
Rayonier Board following the Effective Time, and held a deferred cash balance under the Rayonier Outside Directors’ Compensation Program immediately prior to the Effective Time, shall, as of the Effective Time, be credited under the SpinCo
Outside Directors’ Compensation Program with the amount of his or her cash balance under the Rayonier Outside Directors’ Compensation Program and shall cease participation in the Rayonier Outside Directors’ Compensation Program as of
the Effective Time (it being understood that such cessation shall not trigger any distribution of payments or benefits under the program), and, as of the Effective Time, Rayonier shall cease to have any Liability to any such SpinCo non-employee
director under the Rayonier Outside Directors’ Compensation Program. 
 (b) Other Liabilities. Except as provided in
Section 4.05(a), Rayonier shall retain all other Liabilities and Assets relating to Rayonier non-employee director compensation, including pursuant to the Rayonier Outside Directors Compensation Program and cash deferral option
agreements thereunder and the Rayonier Directors’ Charitable Award Program. 
 (c) Director Compensation. Rayonier shall be
responsible for the payment of any fees for service on the Rayonier Board that are earned at, before, or after the Effective Time, and SpinCo shall not have any responsibility for any such payments. With respect to any SpinCo non-employee director,
SpinCo shall be responsible for the payment of any fees for service on the SpinCo Board that are earned at any time after the Effective Time and Rayonier shall not have any responsibility for any such payments. Notwithstanding the foregoing, SpinCo
shall commence paying quarterly cash retainers to SpinCo non-employee directors in respect of the quarter in which the Effective Time occurs; provided that, (i) if Rayonier has already paid such quarter’s cash retainers to Rayonier
non-employee directors prior to the Effective Time, then within 30 days after the Distribution Date, SpinCo will pay Rayonier an amount equal to the portion of such payment that is attributable to Transferred Directors’ service to SpinCo after
the Distribution Date (other than any amount that is subject to a deferral election and is credited or to be credited to any such director’s account under the SpinCo Outside Directors’ Compensation Program), and (ii) if Rayonier has
not yet paid such quarter’s cash retainers to Rayonier non-employee directors prior to the Effective Time, then within 30 days after the Distribution Date, Rayonier will pay SpinCo an amount equal to the portion of such payment that is
attributable to Transferred Directors’ service to Rayonier on and prior to the Distribution Date. Rayonier Awards held by non-employee directors as of immediately prior to the Effective Time shall be treated as described in
Section 4.02. 
 ARTICLE V 

QUALIFIED RETIREMENT PLANS 

Section 5.01. SpinCo Pension Plan. 

(a) Establishment of SpinCo Pension Plan. Before the Effective Time, SpinCo shall establish the SpinCo Pension Plan, which, for not less
than the General Continuation Period, shall have substantially the same terms as of immediately prior to the Effective Time as the Rayonier Pension Plan. Notwithstanding the foregoing, for not less than the General Continuation

  
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Period, SpinCo may make such changes, modifications or amendments to the SpinCo Pension Plan as may be required by applicable Law or as are necessary and appropriate to reflect the Separation, it
being understood that any such changes, modifications or amendments shall not result in benefits that are less favorable than those applicable under the Rayonier Pension Plan to SpinCo Group Employees who were participants in the Rayonier Pension
Plan immediately prior to the Effective Time. As soon as practicable after the Effective Time and upon receipt by Rayonier of (i) a copy of the SpinCo Pension Plan; (ii) a copy of certified resolutions of the SpinCo Board (or its
authorized committee or other delegate) evidencing adoption of the SpinCo Pension Plan and any related trust(s) (the “SpinCo Pension Trust”) and the assumption by the SpinCo Pension Plan of the Liabilities described in
Section 5.01(b); and (iii) either (A) a favorable determination letter issued by the IRS with respect to the SpinCo Pension Plan and SpinCo Pension Trust, or (B) an opinion of counsel, which counsel and opinion are
reasonably satisfactory to Rayonier, with respect to the qualified status of the SpinCo Pension Plan under Section 401(a) of the Code and the tax-exempt status of the SpinCo Pension Trust under Section 501(a) of the Code, Rayonier shall direct
the trustee of the Rayonier Pension Trust to transfer assets of the Rayonier Pension Plan to the SpinCo Pension Trust in the amounts described in Section 5.01(b). 

(b) ERISA Section 4044 Transfer. As of the Effective Time, SpinCo shall cause the SpinCo Pension Plan to assume Liabilities under
the Rayonier Pension Plan for SpinCo Group Employees and Former SpinCo Group Employees and the SpinCo Pension Trust to accept Assets with respect to such assumed Liabilities (including Assets and Liabilities in respect of beneficiaries and/or
alternate payees) and the Rayonier Pension Trust shall transfer such Assets to the SpinCo Pension Trust and the Rayonier Pension Plan and the Rayonier Group shall be relieved of such Liabilities.The amount of Assets (whether in cash or kind, as
determined by Rayonier) to be transferred from the Rayonier Pension Trust to the SpinCo Pension Trust in such transfer (or transfers) shall be determined as of the Distribution Date in accordance with, and shall comply with, Section 414(l) of
the Code and, to the extent deemed applicable by the Parties, ERISA Section 4044. Assumptions used to determine the value (or amount) of the Assets to be transferred shall be the safe harbor assumptions specified for valuing benefits in
trusteed plans under Department of Labor Regulations Section 4044.51-57 and, to the extent not so specified, shall be based on the assumptions used in the annual valuation report to determine minimum funding requirements most recently prepared
before the transfer by the actuary for the Rayonier Pension Plan. The transfer amount described above shall be credited or debited, as applicable, with a pro rata share of the actual investment earnings or losses allocable to the transfer amount for
the period between the Distribution Date and an assessment date set by Rayonier that is as close as practicable, taking into account the timing and reporting of valuation of Assets in the Rayonier Pension Trust, to the date upon which Assets equal
in value to the transfer amount are actually transferred from the Rayonier Pension Trust to the SpinCo Pension Trust. During the time before such transfer, benefits for SpinCo Group Employees who terminate employment with the SpinCo Group shall be
paid from the Rayonier Pension Trust. The ultimate transfer amount shall be reduced by the amount of these benefits and credited or debited by the actual investment earnings or losses from the payment date to the assessment date set by Rayonier
above. In addition, during this period, SpinCo will be responsible for a pro rata share of trustee and administration fees attributable to the Assets of the SpinCo Pension Plan that remain in the Rayonier Pension Trust. The entries in the Rayonier
Pension Plan funding standard account shall be divided between the Rayonier Pension Plan and the SpinCo Pension Plan based on the guidance provided in Revenue Rulings 81-212 and 86-47. 

  
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 (c) SpinCo Pension Plan Provisions. The SpinCo Pension Plan shall provide that: 

(i) SpinCo Group Employees and Former SpinCo Group Employees shall (A) be eligible to participate in the SpinCo Pension
Plan as of the Effective Time to the extent that they were eligible to participate in the Rayonier Pension Plan as of immediately prior to the Effective Time, and (B) receive credit for vesting, eligibility and benefit service for all service
credited for those purposes under the Rayonier Pension Plan as of the Effective Time as if that service had been rendered to SpinCo; 

(ii) the compensation paid by the Rayonier Group to a SpinCo Group Employee or Former SpinCo Group Employee that is recognized
under the Rayonier Pension Plan as of immediately prior to the Effective Time shall be credited and recognized for all applicable purposes under the SpinCo Pension Plan as though it were compensation from the SpinCo Group; 

(iii) the accrued benefit of each SpinCo Group Employee or Former SpinCo Group Employee under the Rayonier Pension Plan as of
the Effective Time shall be payable under the SpinCo Pension Plan at the time and in a form that would have been permitted under the Rayonier Pension Plan as in effect as of the Effective Time, with employment by the Rayonier Group before the
Effective Time treated as employment by the SpinCo Group under the SpinCo Pension Plan for purposes of determining eligibility for optional forms of benefit, early retirement benefits, or other benefit forms; and 

(iv) the SpinCo Pension Plan shall assume and honor the terms of all QDROs in effect under the Rayonier Pension Plan as of
immediately prior to the Effective Time with respect to SpinCo Group Employees and Former SpinCo Group Employees. 
 (d) Determination
Letter Request. SpinCo shall submit an application to the IRS as soon as practicable after the Effective Time (but no later than the last day of the applicable remedial amendment period as defined in applicable Code provisions) requesting a
determination letter regarding the qualified status of the SpinCo Pension Plan under Section 401(a) of the Code and the tax-exempt status of its related trust under Section 501(a) of the Code as of the Distribution Date and shall make any
amendments reasonably requested by the IRS to receive such a favorable determination letter. 
 (e) Rayonier Pension Plan after
Distribution Date. From and after the Effective Time, (i) the Rayonier Pension Plan shall continue to be responsible for Liabilities in respect of Rayonier Group Employees and Former Rayonier Group Employees, and (ii) no SpinCo Group
Employees or Former SpinCo Group Employees shall accrue any benefits under the Rayonier Pension Plan. Without limiting the generality of the foregoing, SpinCo Group Employees or Former SpinCo Group Employees shall cease to be participants in the
Rayonier Pension Plan effective as of the Effective Time. 
 (f) Plan Fiduciaries. For all periods after the Effective Time, the
Parties agree that the applicable fiduciaries of each of the Rayonier Pension Plan and the SpinCo Pension Plan, respectively, shall have the authority with respect to the Rayonier Pension Plan and the SpinCo

  
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Pension Plan, respectively, to determine the plan investments and such other matters as are within the scope of their duties under ERISA and the terms of the applicable plan documents. 

(g) No Loss of Unvested Benefits; No Distributions. The transfer of any SpinCo Group Employee’s employment to the SpinCo Group
will not result in the loss of that SpinCo Group Employee’s unvested accruedbenefits (if any) under the Rayonier Pension Plan,which benefit Liability shall be assumed under the SpinCo Pension Plan as provided herein. No SpinCo Group Employee
shall be entitled to a distribution of his or her benefit under the Rayonier Pension Plan or the SpinCo Pension Plan as a result of such transfer of employment. 

Section 5.02. SpinCo Retained Pension Plans. As of the Effective Time, the SpinCo Group shall retain (or assume to the extent
necessary) sponsorship of the Jesup Hourly Union Plan and the Fernandina Hourly Union Plan (collectively, the “SpinCo Retained Pension Plans”), and, from and after the Effective Time, all Assets and Liabilities thereunder shall be
Assets, Liabilities of the SpinCo Group. 
 Section 5.03. SpinCo Savings Plan. 

(a) Establishment of Plan. Before the Effective Time, SpinCo shall establish the SpinCo Savings Plan, which, for not less than the
General Continuation Period, shall have substantially the same terms as of immediately prior to the Effective Time as the Rayonier Savings Plan. Notwithstanding the foregoing, during the General Continuation Period, SpinCo may make such changes,
modifications or amendments to the SpinCo Savings Plan as may be required by applicable Law or as are necessary and appropriate to reflect the Separation, it being understood that any such changes, modifications or amendments shall not result in
benefits that are less favorable than those applicable under the Rayonier Saving Plan to SpinCo Group Employees who were participants in the Rayonier Savings Plan immediately prior to the Effective Time. Before the Effective Time, SpinCo shall
provide Rayonier with (i) a copy of the SpinCo Savings Plan; (ii) a copy of certified resolutions of the SpinCo Board (or its authorized committee or other delegate) evidencing adoption of the SpinCo Savings Plan and the related trust(s)
and the assumption by the SpinCo Savings Plan of the Liabilities described in Section 5.03(b); and (iii) either (A) a favorable determination letter issued by the IRS respect to the SpinCo Savings Plan and its related trust or
(B) an opinion of counsel, which counsel and opinion are reasonably satisfactory to Rayonier, with respect to the qualified status of the SpinCo Savings Plan under Section 401(a) of the Code and the tax-exempt status of its related trust
under Section 501(a) of the Code. 
 (b) Transfer of Account Balances. Not later than 30 days following the Distribution Date
(or such later time as mutually agreed by the Parties), Rayonier shall cause the trustee of the Rayonier Savings Plan to transfer from the trust(s) which forms a part of the Rayonier Savings Plan to the trust(s) which forms a part of the SpinCo
Savings Plan the account balances of the SpinCo Group Employees and Former SpinCo Group Employees under the Rayonier Savings Plan, determined as of the date of the transfer. Such transfers shall be made in kind, including promissory notes evidencing
the transfer of outstanding loans, and, with respect to unitized investments in the Rayonier Inc. Common Stock Fund (the “Rayonier Share Fund”), Rayonier Shares and SpinCo Shares. Any Asset and Liability transfers pursuant to this
Section 5.03(b) shall comply in all respects with Sections 414(l) and 411(d)(6) of the Code. 

  
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 (c) SpinCo Share Fund in SpinCo Savings Plan. The SpinCo Savings Plan will provide,
effective as of the Effective Time: (i) for the establishment of a share fund for SpinCo Shares (the “SpinCo Share Fund”); (ii) that such SpinCo Share Fund shall receive a transfer of and hold all SpinCo Shares distributed
in connection with the Distribution in respect of Rayonier Shares held in Rayonier Savings Plan accounts of SpinCo Group Employees and Former SpinCo Group Employees participating in the Rayonier Savings Plan immediately prior to the Effective Time;
and (iii) that, following the Effective Time, contributions made by or on behalf of such participants shall be allocated to the SpinCo Share Fund, if so directed in accordance with the terms of the SpinCo Savings Plan. 

(d) Rayonier Share Fund in SpinCo Savings Plan. Participants in the SpinCo Savings Plan will be prohibited from increasing their
holdings in the Rayonier Share Fund under the SpinCo Savings Plan and may elect to liquidate their holdings in the Rayonier Share Fund and invest those monies in any other investment fund offered under the SpinCo Savings Plan. After the Effective
Time and the transfer of the account balances as provided in Section 5.03(b) above, all outstanding investments in the Rayonier Share Fund under the SpinCo Savings Plan shall be liquidated and reinvested in other investment funds offered
under the SpinCo Savings Plan, on such dates and in accordance with such procedures as are determined by the administrator and the trustee of the SpinCo Savings Plan. 

(e) SpinCo Share Fund in Rayonier Savings Plan. SpinCo Shares distributed in connection with the Distribution in respect of Rayonier
Shares held in Rayonier Savings Plan accounts of Rayonier Group Employees or Former Rayonier Group Employees who participate in the Rayonier Savings Plan shall be deposited in a SpinCo Share Fund under the Rayonier Savings Plan, and such
participants in the Rayonier Savings Plan will be prohibited from increasing their holdings in such SpinCo Share Fund under the Rayonier Savings Plan and may elect to liquidate their holdings in such SpinCo Share Fund and invest those monies in any
other investment fund offered under the Rayonier Savings Plan. After the Effective Time, all outstanding investments in the SpinCo Share Fund under the Rayonier Savings Plan shall be liquidated and reinvested in other investment funds offered under
the Rayonier Savings Plan, on such dates and in accordance with such procedures as are determined by the administrator and the trustee of the Rayonier Savings Plan. 

(f) SpinCo Savings Plan Provisions. The SpinCo Savings Plan shall provide that: 

(i) SpinCo Group Employees and Former SpinCo Group Employees shall (A) be eligible to participate in the SpinCo Savings
Plan as of the Effective Time to the extent that they were eligible to participate in the Rayonier Savings Plan as of immediately prior to the Effective Time, and (B) receive credit for all service credited for that purpose under the Rayonier
Savings Plan as of immediately prior to the Distribution as if that service had been rendered to SpinCo; and 
 (ii) the
account balance of each SpinCo Group Employee and Former SpinCo Group Employeeunder the Rayonier Savings Plan as of the date of the transfer of Assets from the Rayonier Savings Plan (including any outstanding promissory notes) shall be credited to
such individual’s account balance under the SpinCo Savings Plan. 

  
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 (g) Determination Letter Request. SpinCo shall submit an application to the IRS as soon as
practicable after the Effective Time (but no later than the last day of the applicable remedial amendment period as defined in applicable Code provisions) requesting a determination letter regarding the qualified status of the SpinCo Savings Plan
under Sections 401(a) and 401(k) of the Code and the tax-exempt status of its related trust under Section 501(a) of the Code and shall make any amendments reasonably requested by the IRS to receive such a favorable determination letter. 

(h) Rayonier Savings Plan after Effective Time. From and after the Effective Time, (i) the Rayonier Savings Plan shall continue to
be responsible for Liabilities in respect of Rayonier Group Employees and Former Rayonier Group Employees, and (ii) no SpinCo Group Employees or Former SpinCo Group Employees shall accrue any benefits under the Rayonier Savings Plan. Without
limiting the generality of the foregoing, SpinCo Group Employees and Former SpinCo Group Employees shall cease to be participants in the Rayonier Savings Plan effective as of the Effective Time. 

(i) Plan Fiduciaries. For all periods after the Effective Time, the Parties agree that the applicable fiduciaries of each of the
Rayonier Savings Plan and the SpinCo Savings Plan, respectively, shall have the authority with respect to the Rayonier Savings Plan and the SpinCo Savings Plan, respectively, to determine the investment alternatives, the terms and conditions with
respect to those investment alternatives and such other matters as are within the scope of their duties under ERISA and the terms of the applicable plan documents. 

(j) No Loss of Unvested Benefits; No Distributions. The transfer of any SpinCo Group Employee’s employment to the SpinCo Group
will not result in loss of that SpinCo Group Employee’s unvested benefits (if any) under the Rayonier Savings Plan, which benefit Liability will be assumed under the SpinCo Savings Plan as provided herein. No SpinCo Group Employee shall be
entitled to a distribution of his or her benefit under the Rayonier Savings Plan or SpinCo Savings Plan as a result of such transfer of employment. 

Section 5.04. SpinCo Retained Savings Plans. As of the Effective Time, the SpinCo Group shall retain (or assume to the extent
necessary) sponsorship of the Rayonier – Jesup Mill Savings Plan for Hourly Employees and the Rayonier Inc. – Fernandina Mill Savings Plan for Hourly Employees (collectively, the “SpinCo Retained Savings Plans”), and, from
and after the Effective Time, all Assets and Liabilities thereunder shall be Assets and Liabilities of the SpinCo Group. 
 Section 5.05.
Wood Products Plans. Notwithstanding anything in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement to the contrary, as of the Effective Time, the Rayonier Group shall retain (or assume to the extent
necessary) sponsorship of the Rayonier Inc. Savings Plan for Non-Bargaining Unit Hourly Employees at Certain Locations and the Employees Retirement Plan for Rayonier Inc. Hourly Employees at the Wood Products Facility, and all Assets and Liabilities
thereunder shall be Assets and Liabilities of the Rayonier Group. 

  
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 ARTICLE VI 

NONQUALIFIED DEFERRED COMPENSATION PLANS 

Section 6.01. SpinCo Excess Benefit Plan. 

(a) Establishment of the SpinCo Excess Benefit Plan. Before the Effective Time, SpinCo shall establish the SpinCo Excess Benefit Plan,
which, for not less than the General Continuation Period, shall have substantially the same terms as of immediately prior to the Effective Time as the Rayonier Excess Benefit Plan. Notwithstanding the foregoing, during the General Continuation
Period, SpinCo may make such changes, modifications or amendments to the SpinCo Executive Excess Benefit Plan as may be required by applicable Law or as are necessary and appropriate to reflect the Separation, it being understood that any such
changes, modifications or amendments shall not result in benefits that are less favorable than those applicable under the Rayonier Excess Benefit Plan to SpinCo Group Employees who were participants in the Rayonier Excess Benefits Plan immediately
prior to the Effective Time. 
 (b) Assumption of Liabilities from Rayonier. As of the Effective Time, SpinCo shall, and shall cause
the SpinCo Excess Benefit Plan to, assume all Liabilities under the Rayonier Excess Benefit Plan for the benefits of SpinCo Group Employees and Former SpinCo Group Employees and their respective beneficiaries and/or alternate payees, and Rayonier
and the Rayonier Excess Benefit Plan shall be relieved of all Liabilities for those benefits. Rayonier shall retain all Liabilities under the Rayonier Excess Benefit Plan for the benefits for Rayonier Group Employees and Former Rayonier Group
Employees and their respective beneficiaries and/or alternate payees. From and after the Effective Time, SpinCo Group Employees and Former SpinCo Group Employees shall cease to be participants in the Rayonier Excess Benefit Plan. 

Section 6.02. SpinCo Excess Savings and Deferred Compensation Plan. 

(a) Establishment of the SpinCo Excess Savings and Deferred Compensation Plan. Before the Effective Time, SpinCo shall establish the
SpinCo Excess Savings and Deferred Compensation Plan, which, for not less than the General Continuation Period, shall have substantially the same terms as of immediately prior to the Effective Time as the Rayonier Excess Savings and Deferred
Compensation Plan. Notwithstanding the foregoing, during the General Continuation Period, SpinCo may make such changes, modifications or amendments to the Excess Savings and Deferred Compensation Plan as may be required by applicable Law or as are
necessary and appropriate to reflect the Separation, it being understood that any such changes, modifications or amendments shall not result in benefits that are less favorable than those applicable under the Rayonier Excess Savings and Deferred
Compensation Plan to SpinCo Group Employees who were participants in the Rayonier Excess Savings and Deferred Compensation Plan immediately prior to the Effective Time. 

(b) Assumption of Liabilities from Rayonier. As of the Effective Time, SpinCo shall, and shall cause the SpinCo Excess Savings and
Deferred Compensation Plan to, assume all Liabilities under the Rayonier Excess Savings and Deferred Compensation Plan for the benefits of SpinCo Group Employees and Former SpinCo Group Employees and their respective beneficiaries and/or alternate
payees determined as of immediately prior to the Effective Time, and Rayonier and the Rayonier Excess Savings and Deferred Compensation Plan shall be relieved 

  
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of all Liabilities for those benefits. Rayonier shall retain all Liabilities under the Rayonier Excess Savings and Deferred Compensation Plan for the benefits for Rayonier Group Employees and
Former Rayonier Group Employees and their respective beneficiaries and/or alternate payees. From and after the Effective Time, SpinCo Group Employees and Former SpinCo Group Employees shall cease to be participants in the Rayonier Excess Savings and
Deferred Compensation Plan. 
 Section 6.03. Participation; Distributions. The Parties acknowledge that none of the transactions
contemplated by this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement will trigger a payment or distribution of compensation under any of the Rayonier Nonqualified Plans or SpinCo Nonqualified Plans for any participant
and, consequently, that the payment or distribution of any compensation to which such participant is entitled under any of the Rayonier Nonqualified Plans or SpinCo Nonqualified Plans will occur upon such participant’s separation from service
from the SpinCo Group or at such other time as provided in the applicable SpinCo Nonqualified Plan or participant’s deferral election. 

ARTICLE VII 
 WELFARE BENEFIT PLANS

 Section 7.01. Welfare Plans. 

(a) Establishment of SpinCo Welfare Plans. Before the Effective Time, SpinCo shall, or shall cause the applicable member of the SpinCo
Group to, establish the SpinCo Welfare Plans, which, for not less than the Welfare Benefit Continuation Period, shall have terms substantially similar in the aggregate to those of the corresponding Rayonier Welfare Plans as of the Effective Time,
except as otherwise required by applicable Law. 
 (b) Waiver of Conditions; Benefit Maximums. SpinCo shall use commercially
reasonable efforts to cause the SpinCo Welfare Plans to: 
 (i) with respect to initial enrollment as of the Effective Time,
waive (A) all limitations as to preexisting conditions, exclusions, and service conditions with respect to participation and coverage requirements applicable to any SpinCo Group Employee or Former SpinCo Group Employee, other than limitations
that were in effect with respect to the SpinCo Group Employee or Former SpinCo Group Employee under the applicable Rayonier Welfare Plan as of immediately prior to the Effective Time, and (B) any waiting period limitation or evidence of
insurability requirement applicable to a SpinCo Group Employee or Former SpinCo Group Employee other than limitations or requirements that were in effect with respect to such SpinCo Group Employee or Former SpinCo Group Employee under the applicable
Rayonier Welfare Plans as of immediately prior to Effective Time; and 
 (ii) take into account, (A) with respect to
aggregate annual, lifetime, or similar maximum benefits available under the SpinCo Welfare Plans, a SpinCo Group Employee’s or Former SpinCo Group Employee’s prior claim experience under the Rayonier Welfare Plans and any Benefit Plan that
provides leave benefits; and (B) any 

  
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eligible expenses incurred by a SpinCo Group Employee or Former SpinCo Group Employee and his or her covered dependents during the portion of the plan year of the applicable Rayonier Welfare Plan
ending as of the Effective Time to be taken into account under such SpinCo Welfare Plan for purposes of satisfying all deductible, coinsurance, and maximum out-of-pocket requirements applicable to such SpinCo Group Employee or Former SpinCo Group
Employee and his or her covered dependents for the applicable plan year to the same extent as such expenses were taken into account by Rayonier for similar purposes prior to the Effective Time as if such amounts had been paid in accordance with such
SpinCo Welfare Plan. 
 (c) Health Savings Accounts. Before the Effective Time, SpinCo shall, or shall cause a member of the SpinCo
Group to, establish a SpinCo Welfare Plan that will provide health savings account benefits to SpinCo Group Employees on and after the Effective Time (a “SpinCo HSA”). It is the intention of the Parties that all activity under a
SpinCo Group Employee’s health savings account under a Rayonier Welfare Plan (a “Rayonier HSA”) for the year in which the Effective Time occurs be treated instead as activity under the corresponding account under the SpinCo
HSA, such that (i) any period of participation by a SpinCo Group Employee in a Rayonier HSA during the year in which the Effective Time occurs will be deemed a period when such SpinCo Group Employee participated in the corresponding SpinCo HSA;
(ii) all expenses incurred during such period will be deemed incurred while such SpinCo Group Employee’s coverage was in effect under the corresponding SpinCo HSA; and (iii) all elections and reimbursements made with respect to such
period under the Rayonier HSA will be deemed to have been made with respect to the corresponding SpinCo HSA. 
 (d) Flexible Spending
Accounts. The Parties shall use commercially reasonable efforts to ensure that as of the Effective Time, any health or dependent care flexible spending accounts of SpinCo Group Employees (whether positive or negative) (the “Transferred
Account Balances”) under Rayonier Welfare Plans that are health or dependent care flexible spending account plans are transferred, as soon as practicable after the Effective Time, from the Rayonier Welfare Plans to the corresponding SpinCo
Welfare Plans. Such SpinCo Welfare Plans shall assume responsibility as of the Effective Time for all outstanding health or dependent care claims under the corresponding Rayonier Welfare Plans of each SpinCo Group Employee for the year in which the
Effective Time occurs and shall assume and agree to perform the obligations of the corresponding Rayonier Welfare Plans from and after the Effective Time. As soon as practicable after the Effective Time, and in any event within 30 days after the
amount of the Transferred Account Balances is determined or such later date as mutually agreed upon by the Parties, SpinCo shall pay Rayonier the net aggregate amount of the Transferred Account Balances, if such amount is positive, and Rayonier
shall pay SpinCo the net aggregate amount of the Transferred Account Balances, if such amount is negative. 
 (e) Allocation of Welfare
Assets and Liabilities. Effective as of the Effective Time, SpinCo shall assume all Liabilities relating to, arising out of or resulting from health and welfare coverage or claims incurred by or on behalf of SpinCo Group Employees or Former
SpinCo Group Employees or their covered dependents under the Rayonier Welfare Plans or SpinCo Welfare Plans before, at, or after the Effective Time. No Rayonier Welfare Plan shall provide coverage to any SpinCo Group Employee or Former SpinCo Group
Employee after the Effective Time. 

  
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 Section 7.02. COBRA and HIPAA. Rayonier shall continue to be responsible for complying
with, and providing coverage pursuant to, the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the Rayonier Welfare Plans with respect to any Rayonier
Group Employees and any Former Rayonier Group Employees (and their covered dependents) who incur a qualifying event under COBRA before, as of, or after the Effective Time. Effective as of the Effective Time, SpinCo shall assume responsibility for
complying with, and providing coverage pursuant to, the health care continuation requirements of COBRA, the certificate of creditable coverage requirements of HIPAA, and the corresponding provisions of the SpinCo Welfare Plans with respect to any
SpinCo Group Employees or Former SpinCo Group Employees (and their covered dependents) who incur a qualifying event or loss of coverage under the Rayonier Welfare Plans and/or the SpinCo Welfare Plans before, as of, or after the Effective Time. The
Parties agree that the consummation of the transactions contemplated by the Separation and Distribution Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA. 

Section 7.03. Vacation, Holidays and Leaves of Absence. Effective as of the Effective Time, SpinCo shall assume all Liabilities of the
Rayonier Group with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each SpinCo Group Employee. Rayonier shall retain all Liabilities with respect to vacation, holiday, annual leave or
other leave of absence, and required payments related thereto, for each Rayonier Group Employee. 
 Section 7.04. Severance and
Unemployment Compensation. Without limiting the generality of Section 4.04, effective as of the Effective Time, SpinCo shall assume any and all Liabilities to, or relating to, SpinCo Group Employees and Former SpinCo Group Employees
in respect of severance and unemployment compensation, regardless of whether the event giving rise to the Liability occurred before, at or after the Effective Time. Rayonier shall be responsible for any and all Liabilities to, or relating to,
Rayonier Group Employees and Former Rayonier Group Employees in respect of severance and unemployment compensation, regardless of whether the event giving rise to the Liability occurred before, at or after the Effective Time. 

Section 7.05. Workers’ Compensation. With respect to claims for workers’ compensation in the United States, (a) the
SpinCo Group shall be responsible for claims in respect of SpinCo Group Employees and Former SpinCo Group Employees, whether occurring before, at or after the Effective Time, and (b) the Rayonier Group shall be responsible for all claims in
respect of Rayonier Group Employees and Former Rayonier Group Employees, whether occurring before, at or after the Effective Time. The treatment of workers’ compensation claims by SpinCo with respect to Rayonier insurance policies shall be
governed by Section 5.1 of the Separation and Distribution Agreement. 
 Section 7.06. Insurance Contracts. To the extent that
any Rayonier Welfare Plan is funded through the purchase of an insurance contract or is subject to any stop loss contract, the Parties will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for SpinCo
(except to the extent that changes are required under applicable state insurance Laws or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both Rayonier and SpinCo for a reasonable term.
Neither Party shall be liable for failure to obtain such insurance contracts, pricing discounts, or other preferential terms 

  
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for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this Section 7.06. 

Section 7.07. Third-Party Vendors. Except as provided below, to the extent that any Rayonier Welfare Plan is administered by a
third-party vendor, the Parties will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for SpinCo and to maintain any pricing discounts or other preferential terms for both Rayonier and
SpinCo for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees
that such Party may incur pursuant to this Section 7.07. 
 Section 7.08. SpinCo Retained Welfare Plans. As of the
Effective Time, the SpinCo Group shall retain sponsorship of the Welfare Plans listed on Schedule 7.08 (the “SpinCo Retained Welfare Plans”), and, from and after the Effective Time, all Liabilities thereunder shall be
Liabilities of the SpinCo Group. 
 ARTICLE VIII 

NON-U.S. EMPLOYEES 
 SpinCo Group
Employees and Former SpinCo Group Employees who are residents outside of the United States or otherwise are subject to non-U.S. Law and their related benefits and Liabilities shall be treated in the same manner as the SpinCo Group Employees and
Former SpinCo Group Employees, respectively, who are residents of the United States and are not subject to non-U.S. Law. Notwithstanding anything in this Agreement to the contrary, all actions taken with respect to non-U.S. Employees or U.S.
Employees working in non-U.S. jurisdictions shall be subject to and accomplished in accordance with applicable Law in custom of the applicable jurisdictions. 

ARTICLE IX 
 MISCELLANEOUS 

Section 9.01. Employee Records. 

(a) Sharing of Information. Subject to any limitations imposed by applicable Law, Rayonier and SpinCo (acting directly or through
members of the Rayonier Group or the SpinCo Group, respectively) shall provide to the other and their respective authorized agents and vendors all information necessary for the Parties to perform their respective duties under this Agreement. 

(b) Transfer of Personnel Records and Authorization. Subject to any limitation imposed by applicable Law and to the extent that it has
not done so before the Effective Time, Rayonier shall transfer to SpinCo any and all employment records (including any Form I-9, Form W-2 or other IRS forms) with respect to SpinCo Group Employees and Former SpinCo Group Employees and other records
reasonably required by SpinCo to enable SpinCo properly to carry out its obligations under this Agreement. Such transfer of records generally shall occur as soon as administratively practicable at or after the Effective Time. Each Party will permit
the other Party 

  
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reasonable access to Employee records, to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder. 

(c) Access to Records. To the extent not inconsistent with this Agreement, the Separation and Distribution Agreement or any applicable
privacy protection Laws or regulations, reasonable access to Employee-related records after the Effective Time will be provided to members of the Rayonier Group and members of the SpinCo Group pursuant to the terms and conditions of Article VI of
the Separation and Distribution Agreement. 
 (d) Maintenance of Records. With respect to retaining, destroying, transferring,
sharing, copying and permitting access to all Employee-related information, Rayonier and SpinCo shall comply with all applicable Laws, regulations and internal policies, and shall indemnify and hold harmless each other from and against any and all
Liability, claims, actions, and damages that arise from a failure (by the indemnifying Party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations and internal policies applicable to such information.

 (e) Cooperation. Each Party shall use commercially reasonable efforts to cooperate and work together to unify, consolidate and
share (to the extent permissible under applicable privacy/data protection laws) all relevant documents, resolutions, government filings, data, payroll, employment and benefit plan information on regular timetables and cooperate as needed with
respect to (i) any litigation with respect to any employee benefit plan, policy or arrangement contemplated by this Agreement, (ii) efforts to seek a determination letter, private letter ruling or advisory opinion from the IRS or U.S.
Department of Labor on behalf of any employee benefit plan, policy or arrangement contemplated by this Agreement, and (iii) any filings that are required to be made or supplemented to the IRS, U.S. Pension Benefit Guaranty Corporation, U.S.
Department of Labor or any other Governmental Authority; provided, however, that requests for cooperation must be reasonable and not interfere with daily business operations. In addition to and not in limitation of the other provisions
of this Article IX, the Parties shall use commercially reasonable efforts to cooperate in order to ensure the effective implementation and enforcement of obligations under that certain Employee Benefit Services and Liability Agreement by and
between ITT Corporation and Rayonier, dated as of February 11, 1994 (the “ITT Employee Benefits Agreement”) as it relates to Rayonier Group Employees, Former Rayonier Group Employees, SpinCo Group Employees and Former SpinCo
Group Employees, it being understood that such implementation and enforcement may involve direct communications and information sharing between SpinCo and ITT Corporation (or its permitted successor in interest), subject to Rayonier’s prior
written consent as it relates to Rayonier Group Employees and Former Rayonier Group Employees. 
 (f) Confidentiality.
Notwithstanding anything in this Agreement to the contrary, all confidential records and data relating to Employees to be shared or transferred pursuant to this Agreement shall be subject to Section 6.9 of the Separation and Distribution
Agreement and the requirements of applicable Law. 
 Section 9.02. Preservation of Rights to Amend. The rights of each member of the
Rayonier Group and each member of the SpinCo Group to amend, waive, or terminate any plan, 

  
 -35- 

 
arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement. 

Section 9.03. Fiduciary Matters. Rayonier and SpinCo each acknowledges that actions required to be taken pursuant to this Agreement may
be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good-faith determination
(as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own
fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility. 

Section 9.04. Further Assurances. Each Party hereto shall take, or cause to be taken, any and all reasonable actions, including the
execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby. 

Section 9.05. Counterparts; Entire Agreement; Corporate Power. 

(a) This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party. 
 (b) This Agreement, the
Separation and Distribution Agreement and the Ancillary Agreements and the Exhibits, Schedules and appendices hereto and thereto contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous
agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein or
therein. Rayonier represents on behalf of itself and, to the extent applicable, each of its Subsidiaries, and SpinCo represents on behalf of itself and, to the extent applicable, each of its Subsidiaries, as follows: 

(i) each such Person has the requisite corporate or other power and authority and has taken all corporate or other action
necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and 

(ii) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable
in accordance with the terms hereof. 
 (c) Each Party acknowledges and agrees that delivery of an executed counterpart of a signature page
to this Agreement (whether executed by manual, stamp or mechanical signature) by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this Agreement. Each Party expressly adopts and
confirms each such facsimile, stamp or mechanical signature (regardless of whether delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF))made 

  
 -36- 

 
in its respective name as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is not adequate to bind such Party to the same
extent as if it were signed manually and delivered in person and agrees that, at the reasonable request of the other Party at any time, it will as promptly as reasonably practicable cause this Agreement to be manually executed (any such execution to
be as of the date of the initial date thereof) and delivered in person, by mail or by courier. 
 Section 9.06. Governing Law. This
Agreement (and any claims or disputes arising out of or related hereto or to the transactions contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise and whether predicated
on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware, irrespective of the choice of Laws principles of the State of Delaware, including all matters of validity,
construction, effect, enforceability, performance and remedies. 
 Section 9.07. Assignability. This Agreement shall be binding upon
and inure to the benefit of the Parties and their respective successors and permitted assigns. Neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party hereto;
provided, however, that each Party may assign all of its rights and obligations under this Agreement to any of its Subsidiaries; and provided, further, that no such assignment shall release the assigning Party from any of
its liabilities or obligations under this Agreement. Notwithstanding the foregoing, no consent for assignment shall be required for the assignment of a Party’s rights and obligations under this Agreement, the Separation and Distribution
Agreement and all other Ancillary Agreements in whole (i.e., the assignment of a party’s rights and obligations under this Agreement and all Ancillary Agreements all at the same time) in connection with a change of control of a Party so
long as the resulting, surviving or transferee Person assumes all the obligations of the relevant Party by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party. Nothing herein is intended to,
or shall be construed to, prohibit either Party or any of its Subsidiaries from being party to or undertaking a transaction that would result in a change of control. 

Section 9.08. Third-Party Beneficiaries. The provisions of this Agreement are solely for the benefit of the Parties and are not
intended to confer upon any other Person except the Parties any rights or remedies hereunder. There are no other third-party beneficiaries of this Agreement and this Agreement shall not provide any other Third Party with any remedy, claim,
Liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to
amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent contractor or any other
individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other Parties. 

Section 9.09. Notices. All notices, requests, claims, demands or other communications under this Agreement shall be in writing and
shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier 

  
 -37- 

 
service, by facsimile with receipt confirmed (in the case of facsimile or electronic transmission, followed by delivery of an original via overnight courier service), or by registered or
certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 9.09): 

If to Rayonier, to: 

Rayonier Inc. 

1301 Riverplace Boulevard, Suite 2300 

Jacksonville, FL 32207 

Attention: General Counsel 

Facsimile: [—] 

Rayonier Inc. 

1301 Riverplace Boulevard, Suite 2300 

Jacksonville, FL 32207 

Attention: Chief Financial Officer 

Facsimile: [—] 

With a copy (until the Effective Time) to: 

Wachtell, Lipton, Rosen & Katz 

51 West 52nd Street 

New York, New York 10019 

Attention: Nicholas G. Demmo 

       David K. Lam 

Facsimile: (212) 403-2000 

If to SpinCo, to: 

Rayonier Advanced Materials Inc. 

1301 Riverplace Boulevard, Suite [—] 

Jacksonville, FL 32207 

Attention: General Counsel 

Facsimile: [—] 

Rayonier Advanced Materials Inc. 

1301 Riverplace Boulevard, Suite [—] 

Jacksonville, FL 32207 

Attention: Chief Financial Officer 

Facsimile: [—] 

  
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 With a copy (until the Effective Time) to: 

Wachtell, Lipton, Rosen & Katz 

51 West 52nd Street 

New York, New York 10019 

Attention: Nicholas G. Demmo 

                  David K. Lam 

Facsimile: (212) 403-2000 

Any Party may, by notice to the other Party, change the address to which such notices are to be given. 

Section 9.10. Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is determined
by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of any such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and
equitable provision to effect the original intent of the Parties. 
 Section 9.11. Force Majeure. No Party shall be deemed in default
of this Agreement or, unless otherwise expressly provided therein, any Ancillary Agreement for any delay or failure to fulfill any obligation hereunder or thereunder so long as and to the extent to which any delay or failure in the fulfillment of
such obligations is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance shall be extended for a period equal to the time lost by reason of
the delay. A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event, (a) provide written notice to the other Party of the nature and extent of any such Force Majeure
condition; and (b) use commercially reasonable efforts to remove any such causes and resume performance under this Agreement and the Ancillary Agreements, as applicable, as soon as reasonably practicable. 

Section 9.12. Headings. The Article, Section and Paragraph headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement. 
 Section 9.13. Survival of Covenants. Except as
expressly set forth in this Agreement, the covenants, representations and warranties and other agreements contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Effective Time and shall
remain in full force and effect thereafter. 
 Section 9.14. Waivers of Default. Waiver by any Party of any default by the other
Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the waiving Party. No failure or delay by any Party in exercising any right, power or
privilege under this Agreement shall operate 

  
 -39- 

 
as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege. 

Section 9.15. Dispute Resolution. The dispute resolution procedures set forth in Article VII of the Separation and Distribution
Agreement shall apply to any dispute, controversy or claim arising out of or relating to this Agreement. 
 Section 9.16. Specific
Performance. Subject to Article VII of the Separation and Distribution Agreement, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or Parties who are, or
are to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief (on an interim or permanent basis) in respect of its rights or their rights under this Agreement, in addition to any and all other
rights and remedies at Law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at Law for any breach or threatened breach, including monetary damages, may be inadequate compensation for any loss
and that any defense in any Action for specific performance that a remedy at Law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are hereby waived by each of the Parties. 

Section 9.17. Amendments. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless
such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification. 

Section 9.18. Interpretation. In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa
and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be
construed to refer to this Agreement as a whole (including all of the Schedules, Annexes and Exhibits hereto and thereto) and not to any particular provision of this Agreement; (c) Article, Section, Exhibit, Annex and Schedule references are to
the Articles, Sections, Exhibits, Annexes and Schedules to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement shall be deemed to include the exhibits, schedules and annexes to such agreement;
(e) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive;
(g) unless otherwise specified in a particular case, the word “days” refers to calendar days; (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions
are generally authorized or required by law to close in the United States or Jacksonville, Florida; (i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other
agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date
hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar import shall all be references to [—], 2014. 

  
 -40- 

 Section 9.19. Mutual Drafting. (a) This Agreement shall be deemed to be the joint work
product of the Parties and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable to this Agreement. 

[Remainder of page intentionally left blank]  

  
 -41- 

 IN WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be executed by
their duly authorized representatives. 
  

			
	RAYONIER INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	RAYONIER ADVANCED MATERIALS INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 Schedule 1.01(c) 

Rayonier Welfare Plans 
  

							
	Type	  	Plan Name / Benefit	  	Vendor	  	Group
	 	 	 	 
	
Perquisites
	  	Executive Physical Program	  	Mayo	  	Executives
	 	 	 	 
	
Perquisites
	  	Executive Financial / Tax Planning	  	Rayonier	  	Executives
	 	 	 	 
	
Life & AD&D
  
	  	Rayonier Salaried Life Insurance Plan	  	Cigna Life Insurance	  	Salaried Actives & Retirees
(Life)
	 	 	 	 
	
Business Travel Accident
  
	  	The Rayonier Salaried Business Travel Accident Insurance Plan	  	National Union Fire
Insurance	  	Salaried
	 	 	 	 
	 Group
Universal Life
	  	Group Universal Life Insurance	  	Met Life	  	Salaried
	 	 	 	 
	 Long Term
Disability
	  	Group Long Term Disability for Employees of Rayonier Inc.	  	Cigna Life Insurance	  	Salaried
	 	 	 	 
	 Short Term
Disability
	  	Group Short Term Disability for Employees of Rayonier, Inc.	  	Rayonier	  	Salaried
	 	 	 	 
	 Supplemental
Disability (SIRIP)
	  	Supplemental Income Replacement Insurance Program	  	The Standard and Mass
Mutual	  	Salaried
	 	 	 	 
	 Voluntary
AD&D
	  	The Rayonier Salaried Voluntary Accident Insurance Plan	  	National Union Fire
Insurance	  	Salaried
	 	 	 	 
	
Dental
	  	BCBS Dente Max Dental PPO	  	BCBS	  	Salaried Actives & Retirees
	 	 	 	 
	 EAP
	  	Lifeworks EAP and Telephonic Health Coaching	  	Lifeworks	  	Salaried
	 	 	 	 
	
Medical
	  	Consumer Directed Value Plan & Consumer Directed Choice Plan	  	BCBS / Express Scripts	  	Salaried
	 	 	 	 
	 Retiree
Medical
	  	Consumer Directed Health Plan	  	BCBS / Express Scripts	  	Salaried Retirees
	 	 	 	 
	
Vision
	  	EyeMed Vision Care	  	Eye Med	  	Salaried
	 	 	 	 
	 Dependent Care
FSA
	  	Dependent Care Flexible Spending Account	  	BCBS	  	Salaried
	 	 	 	 
	 HSA
	  	Health Savings Account	  	BCBS	  	Salaried
	 	 	 	 
	
Severance
	  	Rayonier Inc. Severance Pay Plan for Salaried Employees	  	Rayonier	  	Salaried

 Schedule 2.03(a) 

Rayonier Benefit Plans to be Mirrored by SpinCo (subject to the terms of the Agreement) 

Equity, Incentive and Executive Compensation Plans 

Rayonier Incentive Stock Plan 
 Rayonier Non-Equity Incentive Plan

 Rayonier Annual Corporate Bonus Program 
 Rayonier 2014 Bonus
and Gain Share Plan 
 Rayonier Executive Severance Pay Plan 

Rayonier Outside Directors Cash Compensation Program 

Retirement and Deferred Compensation Plans 

Retirement Plan for Salaried Employees of Rayonier Inc. 
 Rayonier
Inc. Excess Benefit Plan 
 Rayonier Investment and Savings Plan for Salaried Employees 

Rayonier Inc. Excess Savings and Deferred Compensation Plan 

Rayonier Legal Resources Trust 
 Rayonier Industries Ltd. Group
Personal Pension Plan (GPPP) 
 Welfare Plans 

Schedule 1.01(c) is incorporated herein by reference 

 Schedule 4.03(b) 

SpinCo Retained Bonus Plans 
 Performance
Fibers Hourly 
 Performance Fibers Salaried Grades 11 and Below 

Performance Fibers Salaried Grades 12-16 
 Performance Fibers
Salaried Grades 17 and Above 
 Performance Fibers Sales, Marketing and Research 

Supply Chain Management 
 Performance Fibers Jesup / Fern Mill Sr.
Mgmt 
 Performance Fibers Manufacturing Sr. Mgmt 
 Rayonier
Cash Incentive Plan (2012-2014) 
 Performance Fibers Special Bonus Plan 

SE Wood Procurement 
 SE Wood Procurement Sr. Mgmt 

 Schedule 7.08 

SpinCo Retained Welfare Plans 
  

							
	Type	  	Plan Name / Benefit	  	Vendor	  	Group
	 	 	 	 
	
Life/Accident/Disability
	  	Group Short Term Disability & Life Plan for Employees of Rayonier Inc.	  	Cigna Life Insurance	  	Jesup and Fernandina
Hourly
	 		 	 
	
Dental
	  	Aetna Dental	  	Aetna	  	Fernandina Hourly Actives
& Retirees
	 		 	 
	
Dental
	  	BCBS Dente Max Dental PPO	  	BCBS	  	Jesup Hourly Actives &
Retirees
	 		 	 
	
EAP
  
	  	Lifeworks EAP and Telephonic Health Coaching	  	Lifeworks	  	Jesup and Fernandina
Hourly
	 		 	 
	
Medical
	  	Aetna Health Network Only	  	Aetna	  	Fernandina Hourly Actives
& Retirees
	 		 	 
	
Medical
	  	Jesup Union PPO and Consumer Directed Choice Plan	  	BCBS / Express Scripts	  	Jesup Hourly Actives &
Retirees
	 		 	 
	
Vision
	  	United Healthcare Group Vision Care Insurance	  	United Healthcare	  	Fernandina Hourly
	 		 	 
	
Vision
	  	EyeMed Vision Care	  	EyeMed	  	Jesup Hourly
	 		 	 
	 Dependent Care
FSA
	  	Dependent Care Flexible Spending Account	  	BCBS	  	Jesup Hourly
	 		 	 
	 Health Care
FSA
	  	Healthcare Flexible Spending Account	  	BCBS	  	Jesup Hourly
	 		 	 
	 HSA
	  	Health Savings Account	  	BCBS	  	Jesup Hourly
	 		 	 
	
Executive Key Life Insurance
  
	  	Rayonier Key Executive Insurance Program	  	Pacific Life or Mass
Mutual, as applicable	  	Any Syrah Group Employee
or Former Syrah Group
Employee who is eligible to
receive benefits under such
policy
	 		 	 
	 Voluntary
Short-Term Disability
	  	TrustMark Voluntary Short-Term Disability	  	TrustMark	  	Fernandina Hourly

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