Document:

Exhibit 10.1

 

FORM
OF

SSA GLOBAL TECHNOLOGIES, INC.

2003 EQUITY INCENTIVE PLAN

STOCK UNIT AWARD AGREEMENT

 

This Stock Unit Award
Agreement (“Agreement”) is made and entered into, as of the Grant Date set
forth on the signature page hereto, by and between SSA Global Technologies, Inc.,
a Delaware Corporation (“Company”), and [                   ]
(“Grantee”).

 

R
E C I T A L S

 

A.                                   The Company has established and maintains the
SSA Global Technologies, Inc. 2003 Equity Incentive Plan (“Plan”) in order
to further the growth, development, and financial success of the Company, and
its Subsidiaries, by providing equity based incentives and equity ownership
opportunities to certain directors, officers, and employees of, and consultants
to, the Company.

 

B.                                     Grantee is currently employed by the Company
in a senior executive position and the Committee has awarded Stock Units to
Grantee, subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, the parties
hereto, intending to be legally bound, hereby agree as follows:

 

I.
Definitions.

 

(a) Initially capitalized terms used in this
Agreement have the meaning given to such terms in the Plan, except as expressly
otherwise herein provided.

 

(b) The following terms, when used in this
Agreement and initially capitalized, shall have the following meanings:

 

1.
“For Cause” shall mean the
termination of Grantee’s employment with the Company and all Subsidiaries for
any of the following reasons: (i) embezzlement, dishonesty, or fraud; (ii) conviction
(or plea of nolo contendere) for a felony or conviction (or plea of nolo
contendere) of any crime involving moral turpitude or that impairs Grantee’s
ability to perform his duties; (iii) improper and material disclosure or
use of the Company’s or a Subsidiary’s confidential or proprietary information;
or (iv) Grantee’s willful failure or refusal to follow the lawful and good
faith direction of the Company or a Subsidiary to perform his material duties
which, if curable, remains uncured following thirty (30) days’ written notice
to Grantee from the Company or a Subsidiary describing such failure or refusal.

 

2.
“Good Reason” shall mean any of
the following conditions (not consented to in advance by Grantee or ratified
subsequently by Grantee) which condition(s) remain(s) in effect thirty (30)
days after written notice to the Board from Grantee of such conditions:  (i) a material decrease in Grantee’s
Base Salary; or (ii) a material, adverse change in Grantee’s authority,
responsibilities or duties, as measured against Grantee’s authority,
responsibilities or duties immediately prior to such change.

 

3.
“Grant Shares” shall mean the
shares of the Company’s common stock, $0.01 par value, issued to Grantee or his
Beneficiary following the vesting of the Stock Units.

 

4.
“Stock Units” shall mean the
Equity Incentive awarded pursuant to this Agreement.

 

II.Grant
of Stock Units.  Company, pursuant to
the Plan, hereby grants to Grantee the number of Stock Units set forth on the
signature page hereto.  Such Stock
Units shall be convertible into shares of the Company’s common stock, par value
$0.01 per share, on a one-for-one basis, in accordance with the terms and
conditions of this Agreement.

 

1

 

III.Terms
and Conditions of Grant.

 

A.Normal
Vesting.  Grantee’s rights with
respect to the Stock Units shall vest at 12:01 a.m. on July 1, 2008,
provided that Grantee continues to be employed by Company or a Subsidiary on
such date.

 

B.Accelerated
Vesting.  Grantee’s rights with
respect to the Stock Units shall also vest at 12:01 a.m. on:

 

1.the
date Grantee’s employment with the Company and all Subsidiaries is terminated
prior to July 1, 2008 by the Company other than For Cause (including, but
not by way of limitation, the non-renewal of Grantee’s Amended and
Restated Employment Agreement, effective as of January 3, 2003, by the
Company pursuant to Section 2 of such Agreement) or by Grantee for Good
Reason;

 

2.the
date Grantee’s employment terminates due to the death or Disability of Grantee
prior to July 1, 2008; or

 

3.the
date a Change in Control occurs with respect to the Company prior to July 1,
2008.

 

C.Conversion
of Stock Units.  The Stock Units
shall automatically convert into shares of the Company’s common stock, par
value $0.01 per share, on the date such Stock Units vest and the Company shall
promptly issue to Grantee or his Beneficiary certificates representing the
Grant Shares following such vesting.

 

D.Forfeiture.  Grantee’s rights with respect to the Stock
Units, including the rights to receive the Grant Shares upon vesting of the
Stock Units, shall terminate and be forfeited, upon the termination of Grantee’s
employment with Company and all Subsidiaries by Company For Cause or by Grantee
other than for Good Reason prior to 12:01 a.m. July 1, 2008.

 

E.Tax
Election.  Grantee acknowledges and
agrees that Grantee is not entitled to make, and shall not make, an election
under section 83(b) of the Code with respect to the grant of the
Stock Units.

 

F.Withholding.  Upon the vesting of the Stock Units, Grantee
shall recognize compensation income for federal income tax purposes equal to
the product of (A x B), where A is the number of Stock Units and B is the
closing price of a share of the Company’s common stock on the vesting
date.  Promptly after the vesting date,
Grantee shall pay to the Company an amount equal to the aggregate minimum
state, local and federal income and employment taxes which the Company is
obligated to withhold and deposit with respect to Grantee’s receipt of such
compensation income.  The Committee may
in its discretion permit Grantee to satisfy such withholding obligation by
reducing the number of Grant Shares issued to Grantee, provided that only whole
shares may be used for such payment and any portion of such obligation which
can not be satisfied with whole shares must be paid in cash.

 

G.Adjustment
in Capitalization.  In the event of
any dividend or other distribution (in whatever form), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up,
spin off, combination, repurchase, or exchange of the Company’s common stock or
other securities of the Company, issuance of warrants or other rights to
purchase common stock or other securities of the Company, or other similar
corporate transaction or event which affects the common stock, the Committee
shall adjust the terms of this Agreement and the Stock Units, to the extent
necessary, in its sole discretion, in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under the
Plan or this Agreement.

 

H.Beneficiaries.  The person whose name appears on the
signature page hereof after the caption “Beneficiary” or any successor
designated by Grantee in accordance herewith (“Beneficiary”) shall be entitled
to receive any Grant Shares issued with respect to the Stock Units after the
death of Grantee.  Grantee may from time
to time revoke or change his beneficiary designation without the consent of any
prior designee by filing a new designation with the Committee.  The last designation received by the
Committee shall be controlling, provided that no designation received by the
Committee after the date of Grantee’s death shall be effective.  If no valid designation is in effect at the
time of Grantee’s death, the Beneficiary shall be deemed to be Grantee’s
estate.

 

2

 

IV.Restrictions.

 

A.Grantee
shall not, during his lifetime, sell, assign, mortgage, hypothecate, transfer,
pledge, create a security interest in or lien on, encumber, gift, place in
trust (either voting or other), or otherwise dispose of the Stock Units.  No purported sale, assignment, mortgage,
hypothecation, transfer, pledge, encumbrance, gift, transfer in trust, or other
disposition of, or creation of a security interest in or lien on, the Stock
Units or any portion thereof in violation of this Agreement will be valid and
the Company will not transfer any of the Grant Shares on its books nor will any
such shares be entitled to vote, nor will any dividends be paid thereon, unless
and until there has been compliance with the terms of this Agreement.

 

B.Grantee
shall only sell, assign, gift, transfer or otherwise dispose of the Grant
Shares, or any portion thereof, if the Grant Shares are subject to an effective
registration statement or prior to such transfer the Company receives a
favorable opinion of legal counsel, reasonably acceptable to the Company, to
the effect that the transfer is being made pursuant to a valid exemption from
registration under the Securities Act of 1933, as amended, and all applicable
state securities laws.

 

C.To
the extent that the Grant Shares issued to Grantee are not registered under the
Securities Act of 1933 pursuant to an effective registration statement, the stock
certificates evidencing such Grant Shares may bear such restrictive legend as
Company deems to be required or advisable under applicable law.

 

V.Grantee
Covenants.  As a material inducement
to the Company to make the grant of the Stock Units, Grantee hereby covenants
as follows:

 

A.Confidentiality.  Grantee acknowledges that by virtue of his
employment with the Company or a Subsidiary, he has or may be exposed to or has
had or may have access to confidential information of the Company regarding its
businesses (whether or not developed by Grantee), including, but not limited
to, algorithms, source code, system designs, data formats, customer lists or
records, customer information, mark-ups, project materials, information
regarding independent contractors, marketing techniques, supplier information,
accounting methodology, Creations (as hereinafter defined) or other information
which gives, or may give, the Company and its Subsidiaries an advantage in the
marketplace against its competitors (all of the foregoing are hereinafter
referred to collectively as the “Proprietary Information” except for
information which was in the public domain when acquired or developed by the
Company or a Subsidiary, or which subsequently enters the public domain other
than as a result of a breach of this or any other agreement or covenant).  Grantee further acknowledges that it would be
possible for Grantee, upon termination of his employment with the Company or a
Subsidiary, to use the Proprietary Information to benefit other individuals or
entities.  Grantee acknowledges that the
Company and its Subsidiaries has expended considerable time and resources in
the development of the Proprietary Information and that the Proprietary
Information has been disclosed to or learned by Grantee solely in connection
with Grantee’s employment with the Company or a Subsidiary.  Grantee acknowledges that the Proprietary
Information constitutes a proprietary and exclusive interest of the Company and
its Subsidiaries, and, therefore, Grantee agrees that during the term of his
employment and after the termination thereof, for whatever reason, anywhere in
the world, Grantee shall not directly or indirectly disclose the Proprietary
Information to any person, firm, court, governmental entity or body, corporation
or other entity or use the Proprietary Information in any manner, except in
connection with the business and affairs of the Company and its Subsidiaries or
pursuant to a validly issued and enforceable court or administrative order.  In the event that any court, administrative
hearing officer or the like shall request or demand disclosure of any
Proprietary Information, Grantee shall promptly notify the Company of the same
and cooperate with the Company to obtain appropriate protective orders in respect
thereof. 
Grantee further agrees to
execute such further agreements or understandings regarding his agreement not
to misuse or disclose Proprietary Information or Creations (defined below) as
the Company may reasonably request.

 

B.Non-Solicitation/Non-Competition.  Grantee covenants and agrees that, while
employed by the Company or a Subsidiary, and for a period of 12 months
following the termination of his employment by the Company or a Subsidiary, he
shall not:

 

1.directly
or indirectly solicit for employment (by Grantee or any other person), offer
employment to, or employ any person who was an employee of the Company or a
Subsidiary at the time Grantee’s employment with the Company or a Subsidiary
terminates;

 

3

 

2.without
the written consent of the Board, directly or indirectly engage or assist any
person engaging in, individually, or as an officer, director, employee, agent,
consultant, owner, partner, manager, member, principal, or in any other capacity,
or render any services to, a systems solutions provider, developer of
enterprise resource planning software or any other entity or person who is
engaged, directly or indirectly, in the promotion of software or related
services which are deemed by the Company to be directly competitive with the
software or related services offerings available from the Company or a
Subsidiary, including, but not limited to, the development, production,
distribution, sales, licensing, or marketing of software products (or the
provision of related services) designed to run on IBM AS/400 or HP 9000
computer platforms or any successor platforms, or in an NT operating
environment (“Competitive Business”); provided, however, that the ownership by
Grantee of not more than five percent (5%) of any class of equity security of
any Competitive Business shall not be deemed a breach of this Section 9(b) provided
such securities are listed on a national securities exchange or quotation
system or have been registered under Section 12(g) of the Securities
Exchange Act of 1934, as amended.  Upon
the written request of Grantee, the Board will advise Grantee whether or not a
specific activity which Grantee in contemplating would violate the foregoing restriction,
provided that (I) such request is made prior to Grantee engaging in such
activity and (II) Grantee provides the Board with such information as the Board
determines is necessary to make such determination.  The current and continuing effectiveness of
any such determination shall be conditioned on all such information provided by
Grantee being complete and accurate in all material respects.

 

C.Return
of Materials.  Grantee shall, at any
time upon the request of the Company or a Subsidiary, and in any event upon the
termination of his employment, for whatever reason, immediately return and
surrender to the Company or a Subsidiary all originals and all copies,
regardless of medium, of all algorithms, source code, system designs, data
formats, forms, records, notes, memoranda, price lists, supplier lists,
brochures, project materials, sales materials, manuals, letterhead, business
cards and other property belonging to the Company, any of its Subsidiaries or
any of their clients, as the case may be, created or obtained by Grantee as a
result of or in the course of or in connection with Grantee’s employment
regardless of whether such items constitute Proprietary Information, provided
that Grantee shall be under no obligation to return price lists and other
non-technical materials acquired from third parties which are generally
available to the public.   Grantee
acknowledges that all such materials are, and will remain, the exclusive
property of the Company and its Subsidiaries.

 

D.Creations
and Other Matters.

 

1.Grantee
agrees that all materials, inventions, discoveries, improvements or the like
which Grantee, individually or with others, may originate, develop or reduce to
practice while employed with the Company or a Subsidiary relating to the
business or products of the Company or a Subsidiary, the Company’s or a
Subsidiary’s actual or demonstrably anticipated research or development or any
work performed by Grantee for the Company or a Subsidiary (individually, a “Creation”
and collectively, the “Creations”) shall, as between the Company and Grantee,
belong to and be the sole property of the Company or a Subsidiary.  Grantee hereby waives any and all “moral
rights,” including, but not limited to, any right to identification of
authorship, right of approval on modifications or limitation on subsequent
modification, that Grantee may have in respect of any Creation.  Grantee further agrees, without further
consideration, to promptly disclose each such Creation to the Company and to
such other individuals as the Company or a Subsidiary may direct.  Grantee further agrees to execute and to join
others in executing such applications, assignments and other documents as may
be necessary or convenient to vest in the Company, any of its Subsidiaries, or
any client of the Company or a Subsidiary, as appropriate, full title to each
such Creation and as may be reasonably necessary or convenient to obtain United
States and foreign patents or copyrights thereon to the extent the Company or
any client of the Company, as appropriate, may choose.  Grantee further agrees to testify in any
legal or administrative proceeding relative to any such Creation whenever
requested to do so by the Company or a Subsidiary, provided that the Company
agrees to reimburse Grantee for any reasonable expenses incurred in providing such
testimony.

 

2.The
foregoing covenant shall not apply to any Creation for which no equipment,
supplies, facilities, or trade secret information of the Company was used and
which was developed entirely on Grantee’s own time, unless (i) the
Creation relates to (A) the business of the Company or a Subsidiary or (B) any
actual or reasonably anticipated research or development of the Company or a
Subsidiary or (ii) the Creation results from any work performed by Grantee
for the Company or a Subsidiary.

 

4

 

E.Grantee
acknowledges that in the event that his employment with the Company or a
Subsidiary terminates for any reason, he will be able to earn a livelihood
without violating the foregoing restrictions and that his ability to earn a
livelihood without violating such restrictions is a material condition to his
employment with the Company or a Subsidiary. 
Grantee acknowledges that compliance with the covenants set forth in Section 9(a)-(d) hereof
is necessary to protect the business, goodwill and Proprietary Information of
the Company, its Subsidiaries and its clients and that a breach of these
restrictions will irreparably and continually damage the Company, its
Subsidiaries or its clients for which money damages may not be adequate.  Consequently, Grantee agrees that, in the
event that he breaches or threatens to breach any of these covenants, the
Company and its Subsidiaries shall be entitled to a temporary, preliminary or permanent
injunction in order to prevent the continuation of such harm.  Nothing in this agreement, however, shall be
construed to prohibit the Company or its Subsidiaries from also pursuing any
other remedy, the parties having agreed that all remedies are to be
cumulative.  The parties expressly agree
that the Company and its Subsidiaries may, in their sole discretion, choose to
enforce the covenants in Section 9(a)-(d) hereof in part of to
enforce any of said covenants to a lesser extent than that set forth herein.

 

F.Revision. 
The parties hereto expressly agree that in the event that any of the
provisions, covenants, warranties or agreements in this Agreement are held to
be in any respect an unreasonable restriction upon Grantee or are otherwise
invalid, for whatsoever cause, then the court so holding is hereby authorized
to (a) reduce the territory to which said covenant, warranty or agreement
pertains, the period of time in which said covenant, warranty or agreement
operates or the scope of activity to which said covenant, warranty or agreement
pertains or (b) effect any other change to the extent necessary to render
any of the restrictions contained in this Agreement enforceable.

 

VI.Incorporation
of Terms of Plan.  The terms of the
Plan are incorporated herein by reference and Grantee’s rights hereunder are
subject to such terms.  To the extent the
terms of the Plan are inconsistent with the terms of this Agreement, the terms
of this Agreement shall control.  Grantee
hereby acknowledges receipt of a copy of the Plan and agrees to comply with all
requirements of the Plan.

 

VII.Miscellaneous
Provisions.

 

A.Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of Illinois,
without giving effect to any principles of conflict of laws thereof.

 

B.Amendment
and Termination.  The Board or
Committee may at any time amend, alter, suspend, discontinue or terminate this
Agreement, provided that no such action that materially changes or in any way
impairs the rights of the Grantee under this Agreement shall be effective
unless consented to by the Grantee in writing or unless such action is
expressly permitted under this Agreement.

 

C.No
Employment Right.  Nothing in this
Agreement, nor the grant of the Stock Units hereunder, shall in any way limit
the right of the Company or a Subsidiary to terminate Grantee’s employment at
any time or confer upon Grantee any right to continue as an employee of the
Company or any Subsidiary.

 

D.Gender.  Except where otherwise indicated by context,
any masculine term used herein shall also include the feminine.

 

E.Entire
Agreement.  This Agreement and the
Plan constitute the entire agreement between the parties with respect to the
subject matter hereof and thereof, merging any and all prior agreements and
supersedes all prior negotiations, representations, offer letters, employment
agreements, other agreements or any other written or oral communications
concerning the grant of Stock Units.

 

F.Severability.  In the event any provision of this Agreement
shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining provisions of the Agreement and the Agreement
shall be construed and enforced as if the illegal or invalid provision had not
been included.

 

[Signature
page follows]

 

5

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the Grant Date.

 

	
   

  	
  SSA Global Technologies, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee

  	
   

  

 

 

Grant Date:                                    December 30, 2005

 

No. of Stock Units:

 

 

To be completed by Grantee:

 

Beneficiary:                                                              

 

Beneficiary Address: ________________________

 

_________________________________________

 

Beneficiary Tax EIN:      

 

6Exhibit
10.1

 

AWARD AGREEMENT

Under the

Louisiana-Pacific Corporation

1997 Incentive Stock Award Plan

 

STOCK-SETTLED STOCK APPRECIATION RIGHT

 

	
  Corporation:

  	
   

  	
  Louisiana-Pacific
  Corporation

  
	
   

  	
   

  	
  414 Union
  Street

  
	
   

  	
   

  	
  Suite 2000

  
	
   

  	
   

  	
  Nashville,
  Tennessee 37219

  
	
   

  	
   

  	
   

  
	
  Participant:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
  February 2,
  2006

  
	
   

  	
   

  	
   

  
	
  SAR:

  	
   

  	
  This
  Stock-Settled Stock Appreciation Right

  
	
   

  	
   

  	
   

  
	
  SAR Shares:

  	
   

  	
               
  Shares of Corporation’s Common Stock

  
	
   

  	
   

  	
   

  
	
  Base Price:

  	
   

  	
  $       per Share

  

 

Subject to the terms and conditions of the
Louisiana-Pacific Corporation 1997 Incentive Stock Award Plan, as amended, (the
“Plan”) and this Agreement, effective as of the Grant Date, Corporation grants
to Participant a SAR for the SAR Shares at the Base Price.

 

The provisions of Appendix A attached to this
Agreement are incorporated by reference as part of this Agreement.

 

	
   

  	
  LOUISIANA-PACIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
   

  	
   

  
	
   

  	
  Its 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Participant

  

 

 

APPENDIX
A

To

Award
Agreement for Stock-Settled Stock Appreciation Right

 

This Award Agreement evidences the grant of a
Stock-Settled Stock Appreciation Right (the “SAR”) to Participant under the
Plan.

 

Capitalized terms are defined in Section 7.

 

1.  SAR
Shares Shares; Adjustment

 

In the event of a declaration of a stock
dividend or a stock split (whether effected as a dividend or otherwise) by
Corporation where the record date for such dividend or stock split is after the
Grant Date, the number of SAR Shares and the Exercise Price will automatically
be adjusted proportionately to reflect the effect of such dividend or stock
split.

 

2. 
Terms of the SAR

 

The SAR is subject to all applicable
provisions of the Plan and to the following terms and conditions:

 

2.1                                 Term.  The term of the SAR extends ten years from
the Grant Date unless terminated earlier in accordance with this Agreement.

 

2.2                                 Exercisability.  The SAR initially will not be exercisable
and, unless the SAR is terminated or canceled earlier or the exercisability of
the SAR is accelerated in accordance with this Agreement, the SAR may be
exercised from time to time with respect to a whole number of SAR Shares up to
the following limits:

 

(a)                                  Prior
to the first anniversary of the Grant Date, the SAR may not be exercised;

 

(b)                                 During
the one-year period beginning on the first anniversary of the Grant Date, the
SAR may be exercised with respect to up to one-third of the total SAR Shares;

 

(c)                                  During
the one-year period beginning on the second anniversary of the Grant Date, the
SAR may be exercised with respect to up to two-thirds of the total SAR Shares;
and

 

(d)                                 On
and after the third anniversary of the Grant Date, the SAR may be exercised
with respect to all the SAR Shares.

 

1

 

2.3                                 Effect
of Termination of Employment.  The
SAR may not be exercised (in whole or in part) unless Participant is
continuously employed by an Employer from the Grant Date through at least the
first anniversary of the Grant Date.  If
Participant ceases to be an Employee for any reason on or after the first
anniversary of the Grant Date, the term of the SAR will continue for the
applicable Continuation Period.  The SAR
will remain exercisable during the Continuation Period, if at all, only to the
extent the SAR had become exercisable pursuant to Sections 2.2 and 2.8 of this
Agreement on or prior to the Termination Date. 
The SAR, to the extent not previously exercised, will be canceled
automatically at the end of the applicable Continuation Period.

 

2.4                                 Method
of Exercise.  The SAR, or any portion
thereof, may be exercised, to the extent it has become exercisable pursuant to
this Agreement, by delivery of written notice to Corporation stating the number
of SAR Shares as to which the SAR is being exercised.

 

2.5                                 Other
Documents.  Upon any exercise of the
SAR, Participant must furnish Corporation before the closing of such exercise
such other documents or representations as Corporation may require to assure
compliance with applicable laws and regulations.

 

2.6                                 Settlement
of SAR.  Upon exercise of the SAR for
all or a portion of the SAR Shares after the SAR has become exercisable,
Corporation will calculate the SAR Spread, the Tax Offset Amount, and the Net
SAR Value and will convert the Net SAR Value into a whole number of SAR
Settlement Shares based on the Fair Market Value of a Share on the Exercise
Date, with any remaining portion of the Net SAR Value (representing the value
of a fractional Share) credited as additional federal income tax withholding
for the Participant’s benefit.  Within 10
days following the Exercise Date, Corporation will cause a stock certificate
for the SAR Settlement Shares to be delivered to Participant.

 

2.7                                 Transferability.

 

2.7.1                        General.  Except as provided in Section 2.7.2, the
SAR is not transferable other than by will or the laws of descent and
distribution and may be exercised during the lifetime of Participant only by
Participant or, in the case Participant becomes legally incompetent, by
Participant’s guardian or legal representative. 
No assignment or transfer of the SAR in violation of the foregoing
restriction, whether voluntary, involuntary or by operation of law or
otherwise, except by will or the laws of descent and distribution, will vest in
the assignee or transferee any interest or right whatsoever, but immediately
upon any attempt to assign or transfer the SAR, the SAR will terminate and be
of no force or effect.  Whenever the word
“Participant” is used in any provision of this Agreement under circumstances
where the provision should logically be construed to apply to the executor,
administrator, or the person or persons to whom this SAR may be transferred by
will or by the laws of descent and distribution, it will be deemed to include
such person or persons.

 

2

 

2.7.2                        Permitted
Family Transfers.  The SAR may be
transferred by Participant, without payment of consideration, to Participant’s
immediate family members or lineal descendants (“Permitted Family Members”), to
trusts for the benefit of Permitted Family Members, or to family partnerships
or limited liability companies of which Participant and Permitted Family
members are the only partners or members. 
For purposes of this Section, a transfer of the SAR to a family
partnership or limited liability company in exchange for a partnership or
limited liability company interest will be deemed to be a transfer without
payment of consideration.

 

2.8                                 Effect
of Change in Control.

 

2.8.1                        Acceleration
of Vesting.  Upon a Change in Control
Date, the SAR, to the extent it had not yet become exercisable, will become
fully exercisable.  This acceleration
will not extend the date on which the SAR terminates.  If, or to the extent, the acceleration of the
exercisability of the SAR pursuant to this Section results in an “excess
parachute payment” within the meaning of Section 280G of the Code,
Corporation will reimburse Participant, on an after-tax basis, for (1) any
excise tax imposed by Section 4999(a) of the Code that is directly
attributable to the acceleration of the exercisability of the SAR, and (2) any
income taxes and excise taxes imposed on any reimbursement pursuant to this
sentence.  For purposes of computing any
after-tax reimbursement, Participant will be deemed to pay federal, state, and
local income taxes (for the state and locality of Participant’s residence) at
the highest effective combined marginal rates (giving effect to the
deductibility of state and local taxes) for the tax year in which the
reimbursement payment is made.  No
reimbursement will be due pursuant to this Section if, or to the extent,
Participant is entitled to payment or reimbursement for the same amounts under
any other agreement with Corporation.

 

2.8.2                        Dissolution.  The SAR will terminate upon the effective
date of a dissolution or liquidation of Corporation.

 

2.8.3                        Merger.  In the event of a merger or consolidation in
which Corporation is not the resulting or surviving corporation (or in which
Corporation is the resulting or surviving corporation but becomes a subsidiary
of another corporation), the SAR will automatically be converted into an SAR
with respect to a number of shares of the stock of the resulting or surviving
corporation (or, in the event Corporation becomes a subsidiary of another
corporation, such other corporation) into which Corporation’s Shares are converted
in the transaction with such terms and conditions, both as to number of shares,
SAR price, and otherwise, as will substantially preserve the economic rights
and benefits of Participant under this Agreement.

 

3. 
Conditions Precedent

 

Corporation will use its best efforts to
obtain approval of the Plan and this SAR by any state or federal agency or
authority that Corporation determines has jurisdiction.  If Corporation determines that any required
approval cannot be obtained,

 

3

 

this SAR will terminate on notice to Participant to that effect.  Without limiting the foregoing, Corporation
will not be required to issue any Shares upon exercise of all or any portion of
the SAR until Corporation has taken all action required to comply with all
applicable federal and state securities laws.

 

4. 
Successorship

 

Subject to restrictions on transferability
set forth in Section 2.7, this Agreement will be binding upon and benefit
the parties, their successors and assigns.

 

5. 
Notices

 

Any notices under this SAR must be in writing
and will be effective when actually delivered personally or, if mailed, when
deposited as registered or certified mail directed to the address of
Corporation’s records or to such other address as a party may certify by notice
to the other party.

 

6. 
Arbitration

 

Any dispute or claim that arises out of or
that relates to this Agreement or to the interpretation, breach, or enforcement
of this Agreement, 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.

 

7. 
Defined Terms

 

When used in this Agreement, the following
terms have the meaning specified below:

 

•                                          Acquiring Person means any person or
related person or related persons which constitute a “group” for purposes of Section 13(d) and
Rule13d-5 under the Securities Exchange Act of 1934 (the “Exchange Act”), as
such Section and Rule are in effect as of the Grant Date; 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.

 

•                                          Approved Retirement means termination of
employment with an Employer after Participant attains age 60, but only if

 

4

 

such retirement is approved by Corporation’s
Chief Executive Officer (CEO) in his sole discretion and, in the case of
termination of the CEO, by the Compensation Committee of the Board of Directors
of the Corporation in its sole discretion.

 

•                                          Base Price means the per-Share Base Price
specified in the cover sheet for this Award Agreement.

 

•                                          Change in Control of Corporation means:

 

(a)                                  The
acquisition by any Acquiring Person of beneficial ownership (within the meaning
of Rule 13d-3 under the Exchange Act) of 20 percent or more of the
combined voting power of the then outstanding Voting 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 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 stockholders 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
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 50 percent 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

 

5

 

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 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, 20 percent 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 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 stockholders of Corporation of any plan or proposal for the liquidation
or dissolution of Corporation.

 

•                                          Change in Control Date means the first date
following the Grant Date on which a Change in Control has occurred.

 

•                                          Continuation Period means a period during
which the SAR continues to be exercisable after termination of Employment,
namely the period ending on the earlier of the expiration of the original term
of the SAR or:

 

(a)  If the termination of Employment is by reason
of Participant’s death or Disability, the expiration of one year following the
Termination Date;

 

(b)  If the termination of Employment is by reason
of Participant’s Approved Retirement, the expiration of two years following the
Termination Date;

 

(c)  In the case of an involuntary termination of
Participant’s Employment by an Employer, the expiration of five business days
following the Termination Date; or

 

(d)  If the termination of Employment is for any
other reason, the expiration of 30 days following the Termination Date.

 

6

 

(e)  Notwithstanding (a) through (d) above,
if a Participant terminates Employment for any reason other than involuntary
termination by an Employer for cause and has attained age 55 and completed five
years of service (as that term is defined in the Louisiana-Pacific Retirement
Account Plan) upon the Termination Date, the period ending on the expiration of
the original term of the SAR.

 

•                                          Disability means the condition of being
permanently unable to perform Participant’s duties for an Employer by reason of
a medically determinable physical or mental impairment that can be expected to
result in death or that has lasted or can be expected to last for a continuous
period of at least 12 months.

 

•                                          Employee and Employment both refer to
service by Participant as a full-time or part-time employee of an Employer, and
include periods of illness or other leaves of absence authorized by an
Employer.  A transfer of Participant’s
Employment from one Employer to another will not be treated as a termination of
Employment.

 

•                                          Employer means Corporation or a Subsidiary
of Corporation.

 

•                                          Exercise Date means the date the SAR is
exercised in whole or in part.

 

•                                          Net SAR Value means, for each exercise of
all or a portion of the SAR, (a) the product of the SAR Spread multiplied
by the number of SAR Shares as to which the SAR is exercised, less (b) the
Tax Offset Amount for such exercise.

 

•                                          SAR Settlement Shares means, for each
exercise of all or a portion of the SAR, the number of Shares equal to the Net
SAR Value divided by the Fair Market Value of a Share on the Exercise Date
(rounded down to the nearest number of whole Shares).

 

•                                          SAR Spread means the excess of the Fair
Market Value of a Share on the Exercise Date of the SAR over the Base Price.

 

•                                          Tax Offset Amount means, for each exercise
of all or a portion of the SAR, the aggregate amount of federal, state, and
local withholding taxes and Participant’s portion of all applicable payroll
taxes attributable to the SAR Spread upon exercise of the SAR to be withheld
and paid to the appropriate taxing authorities by Employer.

 

7

 

•                                          Termination Date means the date Participant
ceases to be an Employee.

 

•                                          Voting Securities means Corporation’s
issued and outstanding securities ordinarily having the right to vote at
elections of directors.

 

•                                          Capitalized
terms not otherwise defined in this Agreement have the meanings given them in
the Plan.

 

8

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