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LOUISIANA-PACIFIC CORPORATION
  
    SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN    
  


         Amended and Restated January 1, 2002  






  



 
 

TABLE OF CONTENTS    
  



	ARTICLE I—PURPOSE; EFFECTIVE DATE	 	1
	

ARTICLE II—DEFINITIONS	
 	

1
	 	2.1	 	Acquiring Person	 	1
	 	2.2	 	Actuarial Equivalent	 	1
	 	2.3	 	Beneficiary	 	1
	 	2.4	 	Board	 	1
	 	2.5	 	Change in Control	 	1
	 	2.6	 	Committee	 	3
	 	2.7	 	Compensation	 	3
	 	2.8	 	Corporation	 	3
	 	2.9	 	Deferred Retirement Date	 	3
	 	2.10	 	Disability	 	3
	 	2.11	 	Early Retirement Date	 	3
	 	2.12	 	Employer	 	3
	 	2.13	 	Final Average Compensation	 	3
	 	2.14	 	Final Compensation	 	3
	 	2.15	 	Involuntarily Terminated	 	4
	 	2.16	 	Moody's Rate	 	4
	 	2.17	 	Normal Retirement Date	 	4
	 	2.18	 	Participant	 	4
	 	2.19	 	PBGC Rate	 	4
	 	2.20	 	Qualified and Other Plan Accounts	 	4
	 	2.21	 	Retirement	 	4
	 	2.22	 	Spouse	 	4
	 	2.23	 	Supplemental Retirement Benefit	 	4
	 	2.24	 	Target Retirement Percentage	 	4
	 	2.25	 	Years of Credited Service	 	5
	 	2.26	 	Years of Participation	 	5
	

ARTICLE III—PARTICIPATION AND VESTING	
 	

5
	 	3.1	 	Eligibility and Participation	 	5
	 	3.2	 	Vesting	 	5
	 	3.3	 	Cessation of Eligibility	 	5
	

ARTICLE IV—PRERETIREMENT SURVIVOR BENEFIT	
 	

5
	 	4.1	 	Pretermination Survivor Benefit	 	5
	

ARTICLE V—SUPPLEMENTAL RETIREMENT BENEFITS	
 	

6
	 	5.1	 	Normal Retirement Benefit	 	6
	 	5.2	 	Deferred Retirement Benefit	 	6
	 	5.3	 	Early Retirement Benefit	 	6
	 	5.4	 	Early Termination Retirement Benefit	 	6
	 	5.5	 	Change in Control Benefits	 	7
	 	5.6	 	Disability Retirement Benefit	 	7
	 	5.7	 	Payment of Benefits	 	7
	 	5.8	 	Accelerated Distribution	 	8
	 	5.9	 	Qualified and Other Retirement Plan Accounts Offset	 	8
	 	5.10	 	Excise Tax and Lost Benefit Makeup	 	8
	 	5.11	 	Withholding; Payroll Taxes	 	8
	 	5.12	 	Payment to Guardian	 	8



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ARTICLE VI—BENEFICIARY DESIGNATION	
 	

9
	 	6.1	 	Beneficiary Designation	 	9
	 	6.2	 	Changing Beneficiary	 	9
	 	6.3	 	No Beneficiary Designation	 	9
	

ARTICLE VII—ADMINISTRATION	
 	

9
	 	7.1	 	Committee; Duties	 	9
	 	7.2	 	Agents	 	9
	 	7.3	 	Binding Effect of Decisions	 	9
	 	7.4	 	Indemnity of Committee	 	10
	

ARTICLE VIII—CLAIMS PROCEDURE	
 	

10
	 	8.1	 	Claim	 	10
	 	8.2	 	Denial of Claim	 	10
	 	8.3	 	Review of Claim	 	10
	 	8.4	 	Final Decision	 	10
	

ARTICLE IX—TERMINATION, SUSPENSION OR AMENDMENT	
 	

10
	 	9.1	 	Termination, Suspension or Amendment of Plan	 	10
	

ARTICLE X—MISCELLANEOUS	
 	

11
	 	10.1	 	Unfunded Plan	 	11
	 	10.2	 	Unsecured General Creditor	 	11
	 	10.3	 	Trust Fund	 	11
	 	10.4	 	Nonassignability	 	11
	 	10.5	 	Not a Contract of Employment	 	11
	 	10.6	 	Protective Provisions	 	12
	 	10.7	 	Terms	 	12
	 	10.8	 	Captions	 	12
	 	10.9	 	Governing Law; Arbitration	 	12
	 	10.10	 	Validity	 	12
	 	10.11	 	Notice	 	12
	 	10.12	 	Successors	 	12




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   LOUISIANA-PACIFIC CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

ARTICLE I—PURPOSE; EFFECTIVE DATE  


        The purpose of this Supplemental Executive Retirement Plan (the "Plan") is to provide supplemental retirement and death benefits for certain key employees of
Louisiana-Pacific Corporation (the "Corporation"). It is intended that the Plan will aid in retaining and attracting employees of exceptional ability by providing them with these benefits. The Plan
became effective as of July 1, 1997, was amended and restated as of January 1, 2000, and is further amended and restated as of January 1, 2002 as set forth herein. 


ARTICLE II—DEFINITIONS  


        For the purposes of the Plan, the following terms shall have the meanings indicated, unless the context clearly indicates otherwise: 


        2.1    Acquiring Person    



        "Acquiring
Person" means any person or related person or related persons which constitute a "group" for purposes of Section 13(d) and Rule 13d-5 under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"); provided, however, that the term Acquiring Person shall not include: 



        (a)  Corporation
or any of its Subsidiaries; 


        (b)  Any
employee benefit plan or related trust of Corporation or any of its Subsidiaries; 


        (c)  Any
entity holding voting capital stock of Corporation for or pursuant to the terms of any such employee benefit plan; or 



        (d)  Any
person or group solely because such person or group has voting power with respect to capital stock of Corporation arising from a revocable proxy or consent given in
response to a public proxy or consent solicitation made pursuant to the Exchange Act. 




        2.2    Actuarial Equivalent    


        "Actuarial
Equivalent" means equivalence in value between two (2) or more forms and/or times of payment based on a determination by an actuary chosen by the Corporation, using
sound actuarial assumptions at the time of such determination. 


        2.3    Beneficiary    


        "Beneficiary"
means the person, persons or entity entitled under Article VI to receive any Plan benefits payable after a Participant's death. 


        2.4    Board    



        "Board"
means the Board of Directors of the Corporation, 


        2.5    Change in Control    


        A
"Change in Control" shall occur upon: 



        (a)  The
acquisition by any Acquiring Person of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of twenty percent (20%) or
more of the combined voting power of the then outstanding securities which vote generally in the election of directors ("Voting 



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Securities"); provided, however, that for purposes of this paragraph (a), the following acquisitions will not constitute a Change in Control: 




	(i)
	Any
acquisition directly from Corporation;



	(ii)
	Any
acquisition by Corporation;



	(iii)
	Any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by Corporation or any corporation controlled by Corporation;
or



	(iv)
	Any
acquisition by any corporation pursuant to a transaction that complies with clauses (i), (ii), and (iii) of paragraph (c) of this
definition of Change in Control; or 






        (b)  During
any period of twelve (12) consecutive calendar months, individuals who at the beginning of such period constitute the Board (the "Incumbent Board") cease
for any reason to constitute at least a majority of the Board; provided, however, that any individual who becomes a director during the period whose election, or nomination for election, by
Corporation's shareholders was approved by a vote of at least a majority of the directors then constituting the Incumbent Board will be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person (as such term is used in Section 3(d) and 14(d) of the Exchange Act) other
than the Board; or 


        (c)  Consummation
of a reorganization, merger, or consolidation or sale or other disposition of all or substantially all of the assets of Corporation (a "Business
Combination") in each case, unless, following such Business Combination: 




	(i)
	All
or substantially all of the individuals and entities who were the beneficial owners of the Voting Securities outstanding immediately prior to such
Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns Corporation or all or substantially all of Corporation's assets either directly or through one (1) or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business Combination, of the Voting Securities;



	(ii)
	No
Person (excluding any employee benefit plan, or related trust, of Corporation or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, twenty percent (20%) or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination; and



	(iii)
	At
least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent
Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 






        (d)  Approval
by the shareholders of Corporation of any plan or proposal for the liquidation or dissolution of Corporation. 



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        2.6    Committee    


        "Committee"
means the Committee appointed by the Chief Executive Officer to administer the Plan pursuant to Article VII. 


        2.7    Compensation    


        "Compensation"
means base pay and annual incentives paid to a Participant during the calendar year, before reduction for amounts deferred under the Louisiana-Pacific Executive Deferred
Compensation Plan or any other salary reduction program. Compensation does not include expense reimbursements, any form of noncash Compensation or benefits, group life insurance premiums, or any other
payments or benefits other than normal Compensation. 


        2.8    Corporation    


        "Corporation"
means Louisiana-Pacific Corporation, a Delaware corporation, or any successor to the business thereof. 


        2.9    Deferred Retirement Date    



        "Deferred
Retirement Date" means the first day of the month coincident with or next following the Participant's termination of employment with the Employer if it occurs after the
Participant's Normal Retirement Date. 


        2.10    Disability    


        "Disability"
means a physical or mental condition which, in the opinion of the Committee, prevents an employee from satisfactorily performing employee's usual duties for Employer. The
Committee's decision as to Disability will be based upon medical reports and/or evidence satisfactory to the Committee. In no event shall a Disability be deemed to occur or to continue after a
Participant's Normal Retirement Date. 


        2.11    Early Retirement Date    


        "Early
Retirement Date" means the date on which the Participant terminates employment with the Employer if it occurs on or after the first day of the month coincidental with or next
following a Participant's attainment of age fifty-five (55) and completion of five (5) Years of Participation, but prior to his Normal Retirement Date. 



        2.12    Employer    


        "Employer"
means the Corporation and any affiliated or subsidiary corporation of the Corporation which is incorporated under the laws of any state of the United States. 


        2.13    Final Average Compensation    


        "Final
Average Compensation" means the Participant's Compensation during the sixty (60) consecutive calendar months out of the last one hundred twenty (120) months of
employment with the Employer in which the Participant's Compensation is the highest divided by sixty (60). If a Participant's number of months of paid employment with the Employer is less than sixty
(60), the Participant's Final Average Compensation shall be the monthly average of all such months of paid employment. 


        2.14    Final Compensation    


        "Final
Compensation" means a Participant's base pay for the twelve (12) months prior to termination of employment with the Employer, plus the average annual incentive paid the
last three (3) years, divided by twelve (12). If the Participant has not been a Participant in the Employer's annual 


3





 




incentive plan for three (3) full years or been an employee for a full twelve (12) months, then the proceeding determination shall be adjusted pro rata. 


        2.15    Involuntarily Terminated    



        "Involuntarily
Terminated" means a Participant is discharged or resigns in response to a change in day-to-day duties, or reduction in Compensation or benefits, to
a downward change of title, or to a relocation requested by Employer. 


        2.16    Moody's Rate    


        "Moody's
Rate" means a rate of return equal to the monthly equivalent of the annual yield of the Moody's Average Corporate Bond Yield Index for the calendar month as published by Moody's
Investor Service, Inc. (or any successor thereto) or, if such index is no longer published, a substantially similar index selected by the Committee. 



        2.17    Normal Retirement Date    


        "Normal
Retirement Date" means the first day of the month coincident with or next following the Participant's attainment of age sixty-two (62). 


        2.18    Participant    


        "Participant"
means any individual who is participating or has participated in the Plan as provided in Article III. 


        2.19    PBGC Rate    


        "PBGC
Rate" means the Pension Benefit Guaranty Corporation Lump Sum Interest Rate for Private Sector payments, as published in Appendix C of 29 CFR 4022, or any successor or
replacement rate. 


        2.20    Qualified and Other Plan Accounts    



        "Qualified
and Other Plan Accounts" means a Participant's (1) ESOT, ESOT Transfer, Matching, Profit Sharing and Frozen Profit Sharing Accounts under the Louisiana-Pacific Salaried
401(k) and Profit Sharing Plan, (2) accrued benefit under the Louisiana-Pacific Corporation Retirement Account Plan, (3) Supplemental Benefit Plan Account under the Louisiana-Pacific
Supplemental Benefits Plan, (4) Qualified Plan Makeup Credits Account under the Louisiana-Pacific Executive Deferred Compensation Plan and (5) fifty percent (50%) of the value of his or
her Employer Matching Contributions Account under the Louisiana-Pacific Executive Deferred Compensation Plan. 


        2.21    Retirement    



        "Retirement"
means a Participant's termination of employment with the Employer at the Participant's Early Retirement Date, Normal Retirement Date, or Deferred Retirement Date. 


        2.22    Spouse    


        "Spouse"
means a Participant's wife or husband who is lawfully married to the Participant at the time of the Participant's death. 


        2.23    Supplemental Retirement Benefit    


        "Supplemental
Retirement Benefit" means the benefit determined under Article V of this Plan. 


        2.24    Target Retirement Percentage    


        "Target
Retirement Percentage" means the percentage of Final Average Compensation which will be used as a target from which other forms of retirement benefits are subtracted, as provided
in Article V, to arrive at the amount of the Supplemental Retirement Benefit actually payable to a 


4





 




Participant. This percentage shall equal fifty percent (50%) multiplied by a fraction, the numerator of which is the Participant's Years of Credited Service, not to exceed fifteen (15), and the
denominator of which is fifteen (15). The adjusted Target Retirement Percentage shall be rounded to four (4) decimal places. 


        2.25    Years of Credited Service    



        "Years
of Credited Service" means the number of years of credited vesting service determined under the provisions of the Employer's Qualified Retirement Plan. 


        2.26    Years of Participation    


        "Years
of Participation" means the number of twelve (12) month periods the Participant has been a Participant in the Plan as set out in Section 3.1(b) of the Plan. For the
initial Participants, as set out in Appendix A, Years of Participation shall be measured from January 1, 1997. 


ARTICLE III—PARTICIPATION AND VESTING  


        3.1    Eligibility and Participation     



         (a)  Eligibility. Eligibility to participate in the Plan shall be limited to those employees of an Employer who are designated by the Committee.




        (b)  Participation.
An employee's participation in the Plan shall be effective upon notification of the employee of his status as a Participant by the Committee.
Participation in the Plan shall continue until such time as the Participant terminates employment with the Employer, and as long thereafter as the Participant is eligible to receive benefits under
this Plan. 




        3.2    Vesting    


        Each
Participant shall be one hundred percent (100%) vested in benefits under this Plan after completing five (5) Years of Participation in the Plan. The proceeding
notwithstanding, each Participant shall be one hundred percent (100%) vested in benefits under this Plan upon death, Disability or a Change in Control. 


        3.3    Cessation of Eligibility    


        Notwithstanding
Section 3.1(b) of this Plan, if a Participant ceases to be designated by the Committee as eligible to participate in the Plan, by reason of a change in employment
status or otherwise, participation herein and eligibility to receive benefits hereunder shall be limited to the Participant's interest in such benefits as of the date designated by the Committee. 


ARTICLE IV—PRERETIREMENT SURVIVOR BENEFIT  


        4.1    Pretermination Survivor Benefit     


        If a Participant dies while employed by the Employer, the Employer shall pay a supplemental survivor benefit to the Participant's Spouse. The amount of this
benefit shall be equal to one-half (1/2) of the monthly accrued Supplemental Retirement Benefit payable monthly for the life of the Spouse, calculated as if the Participant
was eligible for Early Retirement as of the date of death and with payments commencing to the Spouse within thirty (30) days following the Participant's date of death; provided, that if the
Participant would have been entitled to a benefit described in Section 5.7(c) had the Participant terminated employment with the Employer immediately prior to the date of death and such benefit
has a greater Acturial Equivalent value than the benefit under this Section 4.1, then the benefit described in 5.7(c) shall be payable to the Participant's Spouse or Beneficiary as the case may
be. 


5





 


ARTICLE V—SUPPLEMENTAL RETIREMENT BENEFITS  


        5.1    Normal Retirement Benefit     



        If a Participant retires on their Normal Retirement Date, the Employer shall pay to the Participant a monthly Supplemental Retirement Benefit equal to the Target
Retirement Percentage multiplied by the Participant's Final Average Compensation, less 



        (a)  Fifty
percent (50%) of the Participant's primary Social Security benefit determined at age sixty-two (62), and 


        (b)  An
amount equal to the Participant's Qualified and Other Plan Accounts balances converted to a monthly life annuity. Such conversion shall be at the PBGC Rate; 




times
the vesting percentage determined under Section 3.2 of this Plan. 


        5.2    Deferred Retirement Benefit    


        If
a Participant retires at a Deferred Retirement Date, the Employer shall pay to the Participant a Supplemental Retirement Benefit calculated pursuant to Section 5.1, except that
5.1(a) and 5.1(b) shall be measured at the Participant's date of termination. 


        5.3    Early Retirement Benefit    


        If
a Participant retires at an Early Retirement Date, the Employer shall pay to the Participant a monthly Supplemental Retirement Benefit equal to the Target Retirement Percentage
multiplied by the Participant's Final Average Compensation, less 



        (a)  Fifty
percent (50%) of the Participant's primary Social Security benefit projected to be paid at age sixty-two (62) based on the then current law and
assuming no future increases in Compensation, and 


        (b)  An
amount equal to the Participant's Qualified and Other Plan Accounts balances at termination converted to a life annuity using the PBGC Rate; 




times
the vesting percentage determined under Section 3.2 of this Plan. 


        If
a Participant retires with the approval of the Committee, the above Early Retirement Benefit shall be reduced by three percent (3%) for each year by which the benefit commencement
date precedes the Participant's sixty-second (62nd) birthday (prorated for partial years on a monthly basis). If a Participant retires without the approval of the Committee, the above Early Retirement
Benefit shall be reduced by five percent (5%) for each year by which the benefit commencement date precedes the Participant's sixty-second (62nd) birthday (prorated for partial years on a monthly
basis). For Participants who retire without approval of the Committee, this benefit shall be further reduced by a fraction equal to the Participant's Actual Years of Credited Service at termination
over Years of Credited Service the Participant would have had at age sixty-two (62). 


        5.4    Early Termination Retirement Benefit    



        If
a Participant terminates employment prior to Early Retirement, the Employer shall pay to the Participant a monthly Supplemental Retirement Benefit equal to the product of
(a) times (b) times (c) where: 



        (a)  is
an amount equal to the Target Retirement Percentage multiplied by the Participant's Final Average Compensation, less 




	(i)
	Fifty
percent (50%) of the Participant's primary Social Security benefit determined at age sixty-two (62), and 





6





 





	(ii)
	An
amount equal to the Qualified and Other Plan Accounts balances at age sixty-two (62) converted to life annuity using the PBGC
Rate; 






        (b)  is
the vesting percentage determined under Section 3.2 of this Plan; and 



        (c)  is
a fraction equal to the Participant's Years of Credited Service at termination over Years of Service the Participant would have had at age sixty-two (62). 




        5.5    Change in Control Benefits    


        If
a Participant is Involuntarily Terminated within thirty-six (36) months of a Change in Control, such Participant shall be granted two (2) extra Years of
Credited Service under the Plan, and the greater of Final Compensation or Final Average Compensation shall be used in determining the Participant's benefit. For such Involuntarily Terminated
Participants, benefits shall be payable at the later of age fifty-five (55) or their date of termination. Such benefit shall be calculated pursuant to Section 5.3 and as if
the Participant Retired with the approval of the Committee. In Section 5.3(b), the measurement date of the Qualified and Other Plan Accounts balances shall be the date benefits commence. 


        5.6    Disability Retirement Benefit    


        If
a person terminates employment prior to Normal Retirement as a result of Disability, the Employer shall pay to the Participant a Supplemental Retirement Benefit commencing at the
Participant's Normal Retirement Date equal to the amount the Participant would have received at such time under the Normal Retirement provisions of this Article. For purposes of this calculation and
notwithstanding the receipt of any accelerated distribution or distributions under Section 5.8, Years of Credited Service and Years of Participation shall continue to accrue during the period
of Disability and the Participant's Final Average Compensation shall be based only on the amounts earned during the sixty (60) months prior to Disability if this provides the Participant with a
greater benefit. 


        5.7    Payment of Benefits    



        (a)  Form
of Benefit Payments. The normal form of benefit payment shall be a life annuity. Any other form of benefit elected by the Participant shall be the Actuarial
Equivalent to a life annuity. At the time of enrollment the Participant shall elect the form of benefit payment. The form of benefit payments available to the Participant shall be: 




	(i)
	Life
Annuity



	(ii)
	10-Year
Certain and Life Annuity



	(iii)
	50%
Joint and Spouse Survivor Annuity



	(iv)
	100%
Joint and Spouse Survivor Annuity 






        Participants
may amend their form of benefit election by filing a change form with the Committee at least ninety (90) days before termination of employment with the Employer. 



        (b)  Commencement
of Benefit Payments. The Supplemental Retirement Benefits payable to a Participant under the Normal and Deferred Retirement provisions of this Article shall
commence within thirty (30) days of the Participant's termination of employment. The Early Retirement Benefit payable to a Participant shall commence within thirty (30) days of
Participant's termination. However, the Participant may elect to delay the commencement of such benefit if the election is made at least ninety (90) days prior to termination, provided that
commencement may not be delayed beyond the Participant's sixty-second (62nd) birthday. The Supplemental Retirement Benefits payable to a Participant under the Early Termination or Disability
provisions of this Article shall commence within thirty (30) days of the Participant attaining age sixty-two (62). 



7





 

        (c)  Death
Prior to Commencement of Benefit Payments. If a Participant terminates employment and dies before the commencement of benefits as provided under
Section 5.7(b), any survivor benefit under the form of benefit that was elected by the Participant under Section 5.7(ii), (iii) or (iv) shall be payable to the
Participant's Spouse or Beneficiary, as the case may be, at the time benefits otherwise would have commenced to the Participant. 




        5.8    Accelerated Distribution    


        Notwithstanding
any other provision of the Plan, at any time a Participant shall be entitled to receive, upon written request to the Committee, a lump-sum distribution of the
Actuarial Equivalent of the Participant's unpaid vested accrued benefits under this Plan on the date on which the Committee receives the written request. The vested accrued benefit for active
Participants shall be calculated assuming the Participant had terminated without permission on the date the distribution is requested. Each accelerated distribution shall be subject to a penalty equal
to ten percent (10%) of the amount that would otherwise be distributed, and that amount shall be forfeited by the Participant. The amount payable under this section shall be paid in a lump sum within
sixty-five (65) days following the receipt of the notice by the Committee from the Participant. In the event a Participant requests and obtains an accelerated distribution under
this section the Participant shall cease to be a Participant under the Plan; provided, that if the Participant remains employed by the Employer, participation and future benefit accruals under the
Plan may resume following a period of one (1) year from the date of distribution if the Participant remains an eligible Participant under Section 3.1 at that time. 


        5.9    Qualified and Other Retirement Plan Accounts Offset    


        In
the event that all or a portion of a Participant's Qualified and Other Retirement Plan Accounts are paid out prior to the applicable benefit calculation date under any provision of
Article V of the Plan, the value of such Accounts shall be the Actuarial Equivalent of the amount of such Accounts so paid out determined as of such benefit calculation date; provided that,
notwithstanding Section 2.2, the interest rate used for purposes of this Section 5.9 for determining Acturial Equivalent value shall be the Moody's Rate. 


        5.10    Excise Tax and Lost Benefit Makeup    


        If
as a result of participating in the Plan the Participant is required to pay additional excise tax under Section 4999 of the Internal Revenue Code ("IRC"), or receives a smaller
benefit from any other Employer plan as a result of any IRC Section 280G Golden Parachute limitations, then a makeup amount shall be payable from the Plan. This amount shall be equal to the
amount of Section 4999 excise tax payable and any lost benefit from other Employer Plans due to IRC Section 280G Golden Parachute limitation, as a result of participation in the Plan,
plus any excise tax and income taxes payable due to this payment. The Corporation and Participant shall cooperate in good faith in making such determination and in providing the necessary information
for this purpose. 


        5.11    Withholding; Payroll Taxes    


        The
Employer shall withhold from payments made hereunder any taxes required to be withheld from a Participant's wages for the federal or any state or local government. However, a
Beneficiary may elect not to have withholding for federal income tax purposes pursuant to Section 3405 of the Internal Revenue Code, or any successor provision. 


        5.12    Payment to Guardian    


        If
a Plan benefit is payable to a minor or a person declared incompetent or to a person incapable of handling the disposition of his property, the Committee may direct payment of such
Plan benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or person. The Committee may require proof of incompetency, minority, incapacity or
guardianship as it 


8





 




may deem appropriate prior to distribution of the Plan benefit. Such distribution shall completely discharge the Committee and the Employer from all liability with respect to such benefit. 


ARTICLE VI—BENEFICIARY DESIGNATION  


        6.1    Beneficiary Designation     



        Each Participant shall have the right, at any time, to designate any person or persons as his Beneficiary or Beneficiaries (both primary as well as secondary) to
whom benefits under this Plan shall be paid in the event of his death prior to payment to Participant of the benefits due to the Participant under the Plan. Each Beneficiary designation shall be in a
written form prescribed by the Committee, and will be effective only when filed with the Committee during the Participant's lifetime. 


        6.2    Changing Beneficiary    



        Subject
to Section 6.3, any Beneficiary designation may be changed by a Participant without the consent of the previously named Beneficiary by the filing of a new designation with
the Committee. The filing of a new designation shall cancel all designations previously filed. If a Participant's benefits under the Plan are subject to the community property laws of any state, any
Beneficiary designation or change in Beneficiary designation shall be valid or effective only as permitted by applicable law. 


        6.3    No Beneficiary Designation    



        In
the absence of an effective Beneficiary Designation, or if all designated Beneficiaries predecease the Participant or dies prior to complete distribution of the Participant's
benefits, then the Participant's designated Beneficiary shall be deemed to be the person in the first of the following classes in which there is a survivor: 



        (a)  the
surviving Spouse; 


        (b)  the
Participant's children, except that if any of the children predeceases the Participant but leaves issue surviving, then such issue shall take by right of
representation the share the parent would have taken if living; 


        (c)  the
Participant's estate. 



ARTICLE VII—ADMINISTRATION  


        7.1    Committee; Duties     


        The Plan shall be administered by the Committee, which shall consist of not less than three (3) persons appointed by the Chief Executive Officer and which
may include the CEO as a member. The Committee shall have the authority to make, amend, interpret and enforce all appropriate rules and regulations for the administration of the Plan and decide or
resolve any and all questions, including interpretations of the Plan, as may arise in connection with the Plan. A majority vote of the Committee members shall control any decision. Members of the
Committee may be Participants under the Plan. 


        7.2    Agents    


        The
Committee may, from time to time, employ other agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with counsel who may be
counsel to the Employer. 


        7.3    Binding Effect of Decisions    


        The
decision or action of the Committee with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and 


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regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in the Plan. 


        7.4    Indemnity of Committee    


        The
Employer shall indemnify and hold harmless the members of the Committee against any and all claims, loss, damage, expense or liability arising from any action or failure to act with
respect to the Plan, except in the case of gross negligence or willful misconduct. 


ARTICLE VIII—CLAIMS PROCEDURE  


        8.1    Claim     


        Any person claiming a benefit, requesting an interpretation or ruling under the Plan, or requesting information under the Plan shall present the request in
writing to the Committee which shall respond in writing within thirty (30) days. 


        8.2    Denial of Claim    


        If
the claim or request is denied, the written notice of denial shall state: 



        (a)  The
reason for denial, with specific reference to the Plan provisions on which the denial is based. 


        (b)  A
description of any additional material or information required and an explanation of why it is necessary. 


        (c)  An
explanation of the Plan's claim review procedure. 




        8.3    Review of Claim    


        Any
person whose claim or request is denied or who has not received a response within thirty (30) days may request review by notice given in writing to the Committee. The claim or
request shall be reviewed by the Committee who may, but shall not be required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and submit
issues and comments in writing. 


        8.4    Final Decision    



        The
decision on review shall normally be made within sixty (60) days. If an extension of time is required for a hearing or other special circumstances, the claimant shall be
notified and the time limit shall be one hundred twenty (120) days. The decision shall be in writing and shall state the reason and the relevant plan provisions. All decisions on review shall
be final and bind all parties concerned. 


ARTICLE IX—TERMINATION, SUSPENSION OR AMENDMENT  



        9.1    Termination, Suspension or Amendment of Plan    


        The Corporation may at any time terminate, suspend or amend the Plan in whole or in part; provided, however, that any such termination or suspension, or any
amendment that would materially change the benefits provided under the Plan, shall be subject to the prior approval of the Compensation Committee of the Board. Provided, further, that no such action
shall be effective to decrease or restrict the accrued benefit of any Participant as of the date of such action. 


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ARTICLE X—MISCELLANEOUS  


        10.1    Unfunded Plan    


        The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of "management or highly-compensated
employees" within the meaning of Sections 201, 301 and 401 of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and therefore is exempt from the provisions of Parts 2, 3 and 4
of Title I of ERISA. Accordingly, the Plan shall terminate and no further benefits shall accrue hereunder in the event it is determined by a court of competent jurisdiction or by an opinion of counsel
that the Plan constitutes
an employee pension benefit plan within the meaning of Section 3(2) of ERISA which is not so exempt. In the event of such termination, the amount of each Participant's vested benefits under the
Plan shall be distributed to such Participant at such time and in such manner as the Committee, in its sole discretion, determines. 


        10.2    Unsecured General Creditor    


        In
the event of Employer's insolvency, Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, interest or claims in any property or
assets of the Employer, nor shall they be Beneficiaries of, or have any rights, claims or interests in any life insurance policies, annuity contracts or the proceeds therefrom owned or which may be
acquired by the Employer. In that event, any and all of the Employer's assets and policies shall be, and remain, the general, unpledged, unrestricted assets of the Employer. The Employer's obligation
under the Plan shall be that of an unfunded and unsecured promise of the Employer to pay money in the future. 


        10.3    Trust Fund    


        The
Employer shall be responsible for the payment of all benefits provided under the Plan. At its discretion, the Employer may establish one or more trusts, with such trustees as the
Board may approve, for the purpose of providing for the payment of such benefits. Such trust or trusts may be irrevocable, but the assets thereof shall be subject to the claims of the Employer's
creditors. To the extent any benefits provided under the Plan are actually paid from any such trust, the Employer shall have no further obligation with respect thereto, but to the extent not so paid,
such benefits shall remain the obligation of, and shall be paid by, the Employer. 


        10.4    Nonassignability    


        Neither
a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in
advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be unassignable and nontransferable. No part of the
amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other
person, nor be transferable by operation of law in the event of a Participant's or any other person's bankruptcy or insolvency. 


        10.5    Not a Contract of Employment    


        The
terms and conditions of the Plan shall not be deemed to constitute a contract of employment between the Employer and the Participant, and the Participant (or his or her Beneficiary)
shall have no rights against the Employer except as may otherwise be specifically provided herein. Moreover, nothing in the Plan shall be deemed to give a Participant the right to be retained in the
service of the Employer or to interfere with the right of the Employer to discipline or discharge the Participant at any time. 


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        10.6    Protective Provisions    



        A
Participant will cooperate with the Employer by furnishing any and all information requested by the Employer, in order to facilitate the payment of benefits hereunder, and by taking
such physical examinations as the Employer may deem necessary and taking such other action as may be requested by the Employer. 


        10.7    Terms    


        Whenever
any words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases where they would so apply; and wherever any words are
used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply. 


        10.8    Captions    


        The
captions of the articles, sections and paragraphs of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions. 


        10.9    Governing Law; Arbitration    



        The
provisions of the Plan shall be construed and interpreted according to the laws of the State of Oregon. Any dispute or claim that arises out of or that relates to the Plan or to the
interpretation, breach, or enforcement of the Plan, must be resolved by mandatory arbitration in accordance with the then effective arbitration rules of Arbitration Service of Portland, Inc.,
and any judgment upon the award rendered pursuant to such arbitration may be entered in any court having jurisdiction thereof. 


        10.10    Validity    



        In
case any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but the Plan shall be
construed and enforced as if such illegal and invalid provision had never been inserted herein. 


        10.11    Notice    


        Any
notice or filing required or permitted to be given to the Committee under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to
any member of the Committee or the Secretary of the Employer. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the
receipt for registration or certification. 


        10.12    Successors    


        The
provisions of the Plan as it may be amended from time to time shall bind and inure to the benefit of the Employer and its successors and assigns. The term successors as used herein
shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or 


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otherwise acquire all or substantially all of the business and assets of the Employer, and successors of any such corporation or other business entity. 



	 	 	LOUISIANA-PACIFIC CORPORATION
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Vice President, Human Resources
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Secretary
	 	 	 	 	 
	 	 	Dated: January 1, 2002




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