Document:

Stock Purchase Agreement

 Exhibit 10.1 
 SERIES A NON-CUMULATIVE PERPETUAL PREFERRED STOCK 
 PURCHASE AGREEMENT 
 THIS SERIES A NON-CUMULATIVE PERPETUAL PREFERRED STOCK PURCHASE AGREEMENT (the “Agreement”) is made as of the 10th day of December,
2007 by and between Belvedere SoCal, a California corporation (the “Company”), and Belvedere Capital Fund II L.P. (the “Purchaser”). 
 RECITALS  
 WHEREAS, the Company desires to sell to the Purchaser, and the Purchaser
desires to purchase from the Company, the number of shares of Series A Non-Cumulative Perpetual Preferred Stock of the Company (the “Series A Non-Cumulative Perpetual Preferred Stock”) set forth opposite the Purchaser’s name on
Exhibit A, on the terms and conditions set forth herein; 
 NOW, THEREFORE, the parties hereto, intending to be legally bound
and in consideration of the premises and the mutual covenants herein contained, agree to the following: 
 AGREEMENT 
 The parties hereby agree as follows: 
 1.
Purchase and Sale of Preferred Stock. 
 1.1. Sale and Issuance of Series A Non-Cumulative Perpetual Preferred
Stock. 
 (a) Subject to the terms and conditions of this Agreement, the Purchaser agrees to purchase at the Closing and
the Company agrees to sell and issue to the Purchaser at the Closing that number of shares of Series A Non-Cumulative Perpetual Preferred Stock set forth opposite the Purchaser’s name on Exhibit A, at a purchase price of $25.00 per
share. The shares of Series A Non-Cumulative Perpetual Preferred Stock issued to the Purchaser pursuant to this Agreement shall be referred to in this Agreement as the “Shares.” 
 (b) On or before the Closing (as defined below in Section 1.2), the Company shall have authorized the sale and issuance to
each Purchaser of the Shares. The Shares shall have the rights, preferences, privileges and restrictions set forth in the Certificate of Determination for Series A Non-Cumulative Perpetual Preferred Stock of the Company, substantially in the form of
Exhibit B attached to this Agreement (the “Certificate of Determination”). 
 1.2. Closing;
Delivery. 
 (a) The purchase and sale of the Shares shall take place remotely via the exchange of documents and
signatures, at 9:00 a.m., on December 10, 2007, or at such other time and place as the Company and the Purchaser shall mutually agree upon, orally or in writing (which time and place are designated as the “Closing”).

  

 (b) At the Closing, the Company shall deliver to the Purchaser a certificate representing
the Shares being purchased by the Purchaser at the Closing against payment of the purchase price therefor by wire transfer to a bank account designated by the Company. 
 1.3. Defined Terms Used in this Agreement. In addition to the terms defined above, the following terms used in this Agreement shall
be construed to have the meanings set forth or referenced below. 
 “Material
Adverse Effect” means a material adverse effect on the business, prospects, assets (including intangible assets), liabilities, financial condition, property or results of operations of the Company. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
 1.4. Legends and Transfers. (a) The Shares will be issued with the following legend: 
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO,
OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO TRANSFER MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH APPLICABLE SECURITIES LAWS.” 
 (b) The Company will cooperate with the Purchaser with respect to any transfer of the Shares by the Purchaser to any other person in compliance with applicable securities laws, including issuing new certificates.

 1.5. Fee. The Company will pay the Purchaser a fee of $400,000 in cash at the Closing: 
 1.6. Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchaser that: 

1.7. Organization, Good Standing, Corporate Power and Qualification. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of California and has all requisite corporate power and authority to carry on its business as presently conducted and as proposed to be conducted. The Company is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect. 
  

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 1.8. Capitalization. The authorized capital of the Company consists, immediately
prior to the Closing, of: 
 (a) Twenty Million (20,000,000) shares of common stock, no par value per share (the
“Common Stock”). All of the outstanding shares of Common Stock have been duly authorized, are fully paid and nonassessable and were issued in compliance with all applicable federal and state securities laws. 
 (b) Twenty Million (20,000,000) shares of Preferred Stock, 2,000,000 of which have been designated Series A Non-Cumulative Perpetual
Preferred Stock, none of which are issued and outstanding immediately prior to the Closing. The rights, privileges and preferences of the Preferred Stock are as stated in the Certificate of Determination and as provided by the general corporation
law of the State of California. 
 1.9. Authorization. All corporate action required to be taken by the Company’s
Board of Directors and stockholders in order to authorize the Company to enter into this Agreement, and to issue the Shares at the Closing, has been taken or will be taken prior to the Closing. All action on the part of the officers of the Company
necessary for the execution and delivery of this Agreement, the performance of all obligations of the Company under this Agreement to be performed as of the Closing, and the issuance and delivery of the Shares has been taken or will be taken prior
to the Closing. This Agreement constitutes a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies. 
 1.10. Valid Issuance of Shares. The Shares, when issued, sold and delivered in
accordance with the terms and for the consideration set forth in this Agreement, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under this Agreement, applicable state and
federal securities laws and liens or encumbrances created by or imposed by the Purchaser. Assuming the accuracy of the representations of the Purchaser in Section 3 of this Agreement and subject to the filings described in
Section 2.5(ii) below, the Shares will be issued in compliance with all applicable federal and state securities laws. 
 1.11. Governmental Consents and Filings. Assuming the accuracy of the representations made by the Purchaser in Section 3 of this Agreement, no consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement, except for (i) the filing
of the Certificate of Determination, which will have been filed as of the Closing, and (ii) filings pursuant to Regulation D of the Securities Act, and applicable state securities laws, which have been made or will be made in a timely
manner. 
  

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 1.12. Litigation. There is no claim, action, suit, proceeding, arbitration,
complaint, charge or investigation pending or to the best of the Company’s knowledge, currently threatened before any court, administrative agency, or other governmental body (nor, to the Company’s knowledge, is there any basis for any
such action, suit, proceeding, arbitration, complaint, charge or investigation) (i) against the Company or any officer or director of the Company arising out of their employment or board relationship with the Company; (ii) that questions
the validity of this Agreement or the right of the Company to enter into it, or to consummate the transactions contemplated by this Agreement; or (iii) to the Company’s knowledge, that would reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect. 
 1.13. Compliance with Other Instruments. The Company is
not, and has not been since its inception, in violation or default (i) of any provisions of its Certificate of Incorporation or Bylaws, (ii) of any instrument, judgment, order, writ or decree, (iii) under any note, indenture or
mortgage, or (iv) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound, or, to its knowledge, of any provision of federal or state statute, rule or regulation applicable to the Company, the
violation of which would have a Material Adverse Effect. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in any such violation or be in conflict with
or constitute, with or without the passage of time and giving of notice, either (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement or (ii) an event which results in the creation of any
lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company. 
 1.14. Disclosure. Neither this Agreement nor any other agreement or exhibit entered into or delivered pursuant to this Agreement
contains any untrue statement of a material fact or omits to state any material fact required to be stated herein or therein or necessary to make the statements herein or therein not misleading. 
 2. Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants to the Company that: 
 2.1. Authorization. This Agreement constitutes a valid and legally binding obligation of the Purchaser, enforceable in accordance
with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally, or (ii) as
limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 
  

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 2.2. Purchase Entirely for Own Account. This Agreement is made with the Purchaser
in reliance upon the Purchaser’s representation to the Company, which by the Purchaser’s execution of this Agreement, the Purchaser hereby confirms, that the Shares to be acquired by the Purchaser will be acquired for investment for the
Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, in violation of applicable securities laws; provided that this representation does not limit future transfers of the
Shares. 
 2.3. Restricted Securities. The Purchaser understands that the Shares have not been, and will not be,
registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the
Purchaser’s representations as expressed herein. The Purchaser understands that the Shares are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold
the Shares indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Purchaser acknowledges that
the Company has no obligation to register or qualify the Shares for resale. The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and on requirements relating to the Company which are outside of the Purchaser’s control. 
 2.4. Accredited Investor. The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the
Securities Act. 
 2.5. No General Solicitation. Neither the Purchaser, nor any of its officers, directors, employees,
agents, stockholders or partners has either directly or indirectly, including through a broker or finder (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and sale of the Shares.

 3. Conditions to the Purchaser’ Obligations at Closing. The obligations of the Purchaser to purchase the Shares at the Closing
are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived: 
 3.1. Representations and Warranties. The representations and warranties of the Company contained in Section 2 shall be true and correct in all respects as of the Closing. 
 3.2. Performance. The Company shall have performed and complied with all covenants, agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with by the Company on or before the Closing. 
  

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 3.3. Qualifications. All authorizations, approvals or permits, if any, of any
governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant to this Agreement shall be obtained and effective as of the Closing. 

3.4. Certificate of Determination. The Company shall have filed the Certificate of Determination with the Secretary of State of
California on or prior to the Closing, which shall continue to be in full force and effect as of the Closing. 
 3.5.
Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to the Purchaser, and the
Purchaser (or its counsel) shall have received all such counterpart original and certified or other copies of such documents as reasonably requested. Such documents may include good standing certificates. 
 4. Conditions of the Company’s Obligations at Closing. The obligations of the Company to sell Shares to the Purchaser at the Closing are
subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived: 
 4.1.
Representations and Warranties. The representations and warranties of the Purchaser contained in Section 3 shall be true and correct in all respects as of the Closing. 
 4.2. Performance. The Purchaser shall have performed and complied with all covenants, agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with by them on or before the Closing. 
 4.3.
Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares pursuant
to this Agreement shall be obtained and effective as of the Closing. 
 5. Miscellaneous. 
 5.1. Survival of Warranties. The representations and warranties of the Company and the Purchaser contained in or made pursuant to
this Agreement shall survive the execution and delivery of this Agreement and the Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of the Purchaser or the Company.

  

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 5.2. Successors and Assigns. The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and assigns of the parties (including transferees of the Shares). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto
or their respective successors and assigns (including transferees of the Shares) any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
 5.3. Governing Law. This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and
construed in accordance with the laws of the State of California, without regard to conflict of law principles that would result in the application of any law other than the law of the State of California. 
 5.4. Counterparts; Facsimile. This Agreement may be executed and delivered by facsimile signature and in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 5.5.
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 
 5.6. Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business
day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one business (1) day after deposit with a nationally recognized overnight courier, specifying next
business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on the signature page or Exhibit A, or to such e-mail address, facsimile number or address
as subsequently modified by written notice given in accordance with this Section 6.6. If notice is given to the Company or Purchaser, a copy shall also be sent to Latham & Watkins LLP, 633 West Fifth Street, Suite 4000, Los
Angeles, California 90017-2007, Attention Steven B. Stokdyk, Esq., e-mail: steven.stokdyk@lw.com, fax: (213) 891-8763. 
 5.7. Transaction Fee. Upon completion of the Closing, the Company will pay a transaction fee to the Purchaser equal to 2% of the Purchase Price (as defined in Exhibit A). 
 5.8. Fees and Expenses. Upon completion of the Closing, the Company will pay the reasonable fees and expenses of Purchaser. The
Company shall bear its own legal and other expenses with respect to this transaction and the transactions contemplated hereby. 
  

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 5.9. Attorney’s Fees. If any action at law or in equity (including
arbitration) is necessary to enforce or interpret the terms of any of this Agreement or of the Certificate of Determination, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to
any other relief to which such party may be entitled. 
 5.10. Amendments and Waivers. Any term of this Agreement may
be amended, terminated or waived only with the written consent of the Company and the holders of a majority of the then-outstanding Shares. Any amendment or waiver effected in accordance with this Section 6.10 shall be binding upon the
Purchaser and each transferee of the Shares, each future holder of all such securities, and the Company. 
 5.11.
Severability. The invalidity or unenforceability of any provision hereof or of the Certificate of Determination shall in no way affect the validity or enforceability of any other provision. 
 5.12. Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement
or the Certificate of Determination, upon any breach or default of any other party under this Agreement or the Certificate of Determination, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or
default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, the Certificate of Determination or by law or otherwise afforded to any
party, shall be cumulative and not alternative. 
 5.13. Entire Agreement. This Agreement (including the Exhibits
hereto) constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are
expressly canceled. 
 5.14. Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to
the jurisdiction of the state courts of California and to the jurisdiction of the United States District Court for the Central District of California for the purpose of any suit, action or other proceeding arising out of or based upon this
Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of California or the United States District Court for the Central District of California, and
(c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the 

  

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jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in
an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. 
 [Remainder of Page Intentionally Left Blank] 
  

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 IN WITNESS WHEREOF, the parties have executed this Series A Non-Cumulative Perpetual Preferred Stock
Purchase Agreement as of the date first written above. 
  

			
	COMPANY:
	
	BELVEDERE SOCAL
		
	By:	 	/s/ Alan Lane

			
	Name:	 	Alan Lane

			
	Title:	 	Executive Chairman

			
	Address:	 	One Maritime Plaza, Suite 825
	San Francisco, CA 94111

			
	Attention:	 	Chief Executive Officer

			
	Fax:	 	(415) 434-9918

  

			
	PURCHASER:
	
	BELVEDERE CAPITAL FUND II L.P.
	by its General Partner
	BELVEDERE CAPITAL PARTNERS II LLC
		
	By:	 	/s/ Alison Davis

			
	Name:	 	Alison Davis

			
	Title:	 	Managing Member

			
	Address:	 	One Maritime Plaza, Suite 825

			
	San Francisco, CA 94111

			
	Attention:	 	Alison Davis

			
	Fax:	 	(415) 434-9918

 EXHIBIT A 
 SCHEDULE OF PURCHASERS 
  

						
	 Name
	  	Shares of Series A Non-
Cumulative Perpetual
Preferred Stock	  	Purchase Price
	 Belvedere Capital Fund II L.P.
	  	800,000	  	$	20,000,000.00

 EXHIBIT B 
 FORM OF CERTIFICATE OF DETERMINATION 
 [See Attached]Rayonier Annual Corporate Bonus Program

 Exhibit 10.1 
 RAYONIER 
 ANNUAL CORPORATE BONUS PROGRAM 
 (as amended and restated December 6, 2007) 

 Rayonier 
 Annual Corporate Bonus Program 
  

	1.	Purpose 

 This Rayonier Annual Corporate Bonus
Program (“Bonus Program”) is the vehicle through which the Compensation and Management Development Committee (the “Committee”) of the Rayonier Board of Directors will make awards to key personnel that have an impact on the
Company’s achievement of annual or other short-term Performance Objectives. 
 The Bonus Program is effective for Performance Periods
designated by the Committee until such time as the Bonus Program is modified or terminated. 
  

	2.	Definitions 

 For purposes of the Bonus Program, the
following terms have the indicated definitions. Terms not defined here have the same meaning as under the 2004 Incentive Stock and Management Bonus Plan (the “Plan”). 
  

	 	(a)	“Available Bonus Pool” means with respect to any Performance Period, the sum of the Preliminary Bonus Awards for all Designated Employees excluding Covered
Executives; provided that, such sum shall not exceed the amount specified in Section 4(o). 

  

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

  

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

  

	 	(d)	“Business Unit Performance Factor” or “BUPF” has the meaning set forth in Section 6. 

  

	 	(e)	“Code” means the Internal Revenue Code of 1986, as it may be amended from time to time, and the applicable regulations thereunder. 

  

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

  

	 	(g)	“Covered Executive” has the same meaning as a “Participant” under Section 9 of the Plan, but shall include only each Designated Employee whose
compensation is required to be reported to shareholders in the Company’s proxy statement in respect of any year to the extent that the deduction for amounts payable to such Executive hereunder in respect of such year are subject to the rules of
Section 162(m) of the Code. 

  

	 	(h)	“Designated Employees” means with respect to any applicable Performance Period, the Covered Executives and other employees designated by Salary Grade 15 or higher,
or otherwise, by the Committee prior to the end of the first quarter of the Performance Period. 

  

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

  

	 	(j)	“Preliminary Bonus Award” means: 

  

	 	(i)	for Designated Employees other than Covered Executives, the product of multiplying (a) the employee’s Target Award times (b) the sum of (x) the Corporate Payout
Level calculated in accordance with Exhibit A and (y) if applicable, the Business Unit Payout Level(s) calculated in accordance with Exhibit B, in each case first multiplied by the applicable weighting percentage as determined by
the Committee; and 

  

	 	(ii)	for Covered Executives, an amount equal to 200% of the executive’s Target Award unless both the Corporate Payout Level and, if applicable, the Business Unit Payout
Level(s) are 0%, in which case the Preliminary Bonus Award will be zero. 

  

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

  

	 	(l)	“Performance Bonus Award” has the meaning set forth in the Plan and is the Bonus Award determined in accordance with this Bonus Program and the Plan.

  

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

  

	 	(n)	“Target Award” means with respect to a Designated Employee, the amount expressed as a percent of the Designated Employee’s Performance Period end base salary.

  

	3.	Administration 

 The Committee shall administer the
Bonus Program for all Designated Employees, including in accordance with the Plan, with respect to Covered Executives. 
 Before payment of
any Bonus Award is made to a Covered Executive under this Bonus Program, the Committee shall have complied with the provisions of Section 4. 
  

	4.	Procedures for Establishing and Determining Performance Bonus Awards 

  

	 	(o)	Maximum Bonus Awards for a Performance Period. The aggregate amount payable as Bonus Awards for any Performance Period for all Designated Employees shall not exceed 200% of
the sum of the Target Bonus Awards for all Executives. 

  

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

  

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

  

	 	(ii)	Determine the parameters of the Corporate Performance Factor to be applied for the Performance Period in accordance with Section 5(s) and substantially in the form set
forth on Exhibit A; 

  

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	 	(iii)	Determine the parameters of the Business Unit Performance Factors to be applied for the Performance Period in accordance with Section 6(u) and substantially in the form
set forth on Exhibit B; 

  

	 	(iv)	Establish the Target Award for the Performance Period for the class of Designated Employees covered by the Bonus Program, including for each Covered Executive, by reference to a
percent of base salary by Salary Grade at the end of the performance period as set forth on Exhibit C; and 

  

	 	(v)	The weightings to be given CPF and one or more BUPFs for each Designated Employee. 

  

	 	(q)	Calculation of Performance Bonus Awards. In the case of Designated Employees who are not Covered Executives, individual Performance Bonus Awards are determined based upon the
Designated Employee’s Preliminary Bonus Award, adjusted up to +/-30% based upon the Designated Employee’s performance against identified individual objectives established for each Designated Employee; provided that, the sum of all
Performance Bonus Awards for Designated Employees who are not Covered Executives cannot exceed the Available Bonus Pool. Covered Executive Performance Bonus Awards are calculated pursuant to (r) (ii) of this Section 4.

  

	 	(r)	Certification of CPF and BUPFs and Finalization of Bonus Awards. At the end of each Performance Period, the Committee shall: 

  

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

  

	 	(ii)	With respect to each Covered Executives, determine the reductions if any to the Covered Executives’ Preliminary Bonus Awards based upon the Committee’s review of each
Covered Executive’s performance in terms of the CPF and BUPF(s), if applicable, and performance against identified individual objectives established for each Covered Executive; with such determination in the sole negative discretion of the
Committee; 

  

	 	(iii)	Establish the form of payment and the payment date for Bonus Awards for the Performance Period for Covered Executives as provided in Section 7; and

  

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

  

	5.	Corporate Performance Factor 

  

	 	(s)	 Criteria for Establishing the CPF. The “Corporate Performance Factor” shall consist of those Performance Goals permitted under Section 9 of
the Plan that are selected by the Committee for the specified Performance Period, and weighted as designated by the Committee for such Performance Period so as to reflect Performance Objectives under 

  

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the Plan. Such selection and weighting in determining the Corporate Performance Factor may be changed from time to time by the Committee consistent with the
provisions of Section 9 of the Plan in respect of Covered Executives, provided that with respect to a particular Performance Period, the Corporate Performance Factor shall be established generally prior to the commencement of such
Performance Period and in all events not later than the end of the first quarter of any Performance Period. 

  

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

  

	6.	Business Unit Performance Factors 

  

	 	(u)	Criteria for Establishing and Calculating Business Unit Performance Factors. A Business Unit Performance Factor shall be calculated for on each individual business based on
the unit’s performance against those Performance Goals permitted under Section 9 of the Plan that are selected by the Committee for the specified Performance Period, and weighted as designated by the Committee for such Performance Period
so as to reflect Performance Objectives under the Plan. Such selection and weighting in determining the Business Unit Performance Factor may be changed from time to time by the Committee consistent with the provisions of Section 9 of the Plan
in respect of Covered Executives, provided that with respect to a particular Performance Period, the Business Unit Performance Factor shall be established generally prior to the commencement of such Performance Period and in all events not
later than the end of the first quarter of any Performance Period. 

  

	 	(v)	Initial BUPF Performance Goals and Parameters. The Business Unit Performance Factors shall be computed as specified in Exhibit B hereto until changed by the Committee
as provided in Section 6(u), with such adjustments to reported earnings for accounting rule changes, special non-recurring items, discontinued operations, and similar adjustments as are approved by the Committee made so as to provide
consistent measurements of continuing corporate performance. 

  

	7.	Payment of Bonus Awards 

  

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

  

 4 

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

  

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

  

	 	(z)	Timing of Payments. Before payment of any Bonus Award is made to a Covered Executive under this Bonus Program, the Committee shall have complied with the provisions of
Section 4. It is anticipated that for Designated Employees other than Covered Executives, if authorized by the Committee, payments of Bonus Awards can be based on preliminary data available in the last month of the Performance Period and
made shortly after the end of the Performance Period, subject to confirmation following the close of the Performance Period by report to the Committee at its next regularly scheduled meeting following such payments indicating that payment was made
in compliance with the terms of the Bonus Program. The time of payment shall be as determined by the Committee, though it is anticipated that payment shall be made so as not to have any payments under this program subject to the provisions of
Section 409A of the Code. 

  

	8.	Termination and Amendment 

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

	9.	Other Provisions 

  

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

  

 5 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	10.	Adoption Date 

 This Bonus Program was first adopted
by the Committee on December 9, 2004 with application for Performance Periods commencing January 1, 2005, and amended and restated as herein provided on December 6, 2007, with application for Performance Periods commencing January 1,
2008. 
  

 6 

 Exhibit A 
 RAYONIER 
 ANNUAL CORPORATE BONUS PROGRAM 
 METHODOLOGY FOR COMPUTING THE 
 CORPORATE
PERFORMANCE FACTOR 
 FOR THE 2008 PERFORMANCE PERIOD 
  

								
	 2008 Performance Goals
	  	Weighting	 
	 Financial Measures
	  	80	%
				
		  	 Net Income vs. Budget
 (weighted 50%)
	  	NI divided by Budget NI	  		
				
		  	 CAD vs. Budget
 (weighted 50%)
	  	 CAD divided by Budget CAD
 Apply formula separately for actual cumulative CAD vs. budget for each quarter ending 3/31, 6/30, 9/30 and 12/31 within the Performance Period.
	  		
	 Strategic Measures (as reviewed and approved by the Committee)
	  	20	%

 Computation of the Corporate Payout Factor: 
  

	 	•	 	 Apply the Performance Goal calculation formula for Net Income and CAD as specified above. 

  

	 	•	 	 Multiply the results by the weighting for each financial measure and sum the results to determine the financial measures factor. 

  

	 	•	 	 Using the factor, determine the financial measures payout using the table below, interpolating values between the threshold, target and maximum levels.

  

										
	 	  	Threshold	 	 	Target	 	 	Maximum	 
	 Factor
	  	85	%	 	100	%	 	120	%
	 Financial Payout
	  	20	%	 	100	%	 	200	%

  

	 	•	 	 Multiply the financial payout by the financial measures weighting to determine the financial payout percentage. 

  

	 	•	 	 Once the Committee has determined the strategic measures payout levels ranging from 0% to 40%, add the strategic payout percentage results to the financial payout
percentage results to determine the CPF. Note: The strategic payout for Corporate employees will be the average strategic payout results for Performance Fibers, Real Estate and Forest Resources. 

 Exhibit B 
 RAYONIER 
 ANNUAL CORPORATE BONUS PROGRAM 
 METHODOLOGY FOR COMPUTING THE 
 BUSINESS
UNIT PERFORMANCE FACTOR 
 FOR THE 2008 PERFORMANCE PERIOD 
  

								
	 2008 Performance Goals
	  	Weighting	 
	 Financial Measures
	  	80	%
				
		  	 Operating Income vs. Budget
 (weighted
50%)
	  	OI divided by Budget OI	  		
				
		  	 Business Unit CAD vs. Budget
 (weighted
50%)
	  	 BU CAD divided by Budget BU CAD
 Apply formula separately for actual cumulative BU CAD vs. budget for each quarter ending 3/31, 6/30, 9/30 and 12/31 within the Performance Period.
	  		
	 Strategic Measures (as reviewed and approved by the Committee)(1)
	  	20	%

	(1)	Strategic measures do not apply to non-core Business Unit Executives; therefore, the financial metric weighting will be adjusted accordingly. 

 Computation of the Business Unit Payout Factor: 
  

	 	•	 	 Apply the Performance Goal calculation formula for Net Income and CAD as specified above. 

  

	 	•	 	 Multiply the results by the weighting for each financial measure and sum the results to determine the financial measures factor. 

  

	 	•	 	 Using the factor, determine the financial measures payout using the table below, interpolating values between the threshold, target and maximum levels.

  

										
	 	  	Threshold	 	 	Target	 	 	Maximum	 
	 Factor
	  	85	%	 	100	%	 	120	%
	 Financial Payout
	  	20	%	 	100	%	 	200	%

  

	 	•	 	 Multiply the financial payout by the financial measures weighting to determine the financial payout percentage. 

  

	 	•	 	 Once the Committee has determined the strategic measures payout level ranging from 0% to 40%, add the strategic payout percentage results to the financial payout
percentage results to determine the BUPF. 

 Exhibit C 
 RAYONIER 
 ANNUAL CORPORATE BONUS PROGRAM 
 TARGET BONUS FOR RAYONIER DESIGNATED EMPLOYEES 
 AS A PERCENT OF BASE SALARY* 
  

			
	Salary Grade	 	Bonus Target %
	32	 	100
	31	 	93
	30	 	87
	29	 	80
	28	 	69
	27	 	65
	26	 	61
	25	 	54
	24	 	51
	23	 	43
	22	 	40
	21	 	38
	20	 	30
	19	 	27
	18	 	20
	17	 	17
	16	 	13
	15	 	10

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

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