Document:

Exhibit 10.3

 

LOUISIANA-PACIFIC CORPORATION

2004 EXECUTIVE DEFERRED COMPENSATION PLAN

 

This 2004 Executive Deferred Compensation Plan (the “Plan”)
is adopted by Louisiana-Pacific Corporation, a
Delaware corporation (“Corporation”), effective as of August 16, 2004 (the
“Effective Date”). Capitalized terms not otherwise defined in the Plan have the
meanings set forth in Section 16.

 

1.                                       PURPOSE OF PLAN

 

The continued growth and success of Corporation are
dependent upon its ability to attract and retain the services of executives and
key employees of the highest competence and to provide incentives for their
effective service and superior performance. The purpose of the Plan is to
advance the interests of Corporation and its shareholders through a deferred
compensation program that will attract and retain executives and key employees.

 

2.                                       NATURE OF PLAN

 

This Plan is intended to be and will be administered
by Corporation as an income tax nonqualified, unfunded plan primarily for the
purpose of providing deferred compensation for a “select group of management or
highly compensated employees” within the meaning of Sections 201(2),
301(a)(3), and 401(a)(1) of the Employee Retirement Income Security Act of
1974, as amended.

 

3.                                       SPONSORING EMPLOYERS

 

The sponsoring employers (“Employers”) of the Plan are
Corporation and any subsidiary or affiliate of Corporation that is an employer
of a Participant for income tax purposes.

 

4.                                       ELIGIBILITY AND PARTICIPATION

 

4.1                                 General.
All employees of Corporation or any subsidiary or affiliate of Corporation who
are (a) within Levels 1 or 2 of the Louisiana-Pacific Corporation Management
Incentive Plan (“MIP 1 or MIP 2 level employees”) on the Effective Date and (b)
participants in the Qualified Plans will automatically be participants in the
Plan (“Participants”). For all purposes of this Plan, Corporation’s Chief
Executive Officer will be considered an MIP 1 level employee. An employee who
first becomes an MIP 1 or MIP 2 level employee after the Effective Date will
become a Participant as of the date the employee attains that MIP level.

 

4.2                                 Cessation
of Participation. If a Participant ceases to be an MIP 1 or MIP 2 level
employee:

 

4.2.1                        Participant
Deferral Contributions and Employer Match Contributions. His or her
participation in the Plan will then cease and no further Participant Deferral
Contributions as described in Section 5 or Employer Match Contributions as
described in Section 6.3 will be made or credited for such former
Participant with respect to services performed after the date of such
cessation; and

 

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4.2.2                        Qualified
Plan Credits. Such former Participant will be entitled to a Qualified Plan
Supplemental Credit and a Qualified Plan Makeup Credit, if any, to the extent
provided for in Sections 6.1 and 6.2.

 

5.                                       PARTICIPANT CONTRIBUTIONS

 

Participants may, but are not required to, make
voluntary Participant Deferral Contributions as described in Section 5.1.

 

5.1                                 Participant
Deferral Contributions. Subject to the special rules and limitations set
forth in Sections 5.2, 5.3, and 5.4, a Participant may, by delivery to
Corporation of a written Participant Deferral Election (in such form and at
such time as may be prescribed by or at the direction of the Committee) not
later than the day preceding the first day of a Deferral Period, elect to defer
a specified portion of the Participant’s Base Compensation earned for services
performed in Pay Periods beginning in such Deferral Period and/or a specified
portion of the Participant’s Annual Bonus earned for services performed during
such Deferral Period (even if all or a portion of the Base Compensation or
Annual Bonus will be paid in a subsequent Deferral Period).

 

EXAMPLE:  A Participant Deferral Election to defer a
specified portion of a Participant’s Base Compensation earned for services
performed during Pay Periods beginning in 2005, and/or a specified portion of
the Participant’s Annual Bonus for 2005 that will be payable, if at all, in the
first quarter of 2006, must be delivered to Corporation no later than December 31,
2004 (or such earlier date as specified by the Committee).

 

A Participant’s Participant Deferral Election for a
Deferral Period may not be amended or revoked after the commencement of that
Deferral Period (except as expressly provided in Section 10.4.5 with
respect to changes to the Participant’s Form of Benefit Election included in
the Participant Deferral Election). The portion of a Participant’s Base
Compensation or Annual Bonus that the Participant elects to defer will be
credited to his or her Participant Deferral Contribution Account described in Section 7.1.1
as a Participant Deferral Contribution on the same day or days as each
corresponding non-deferred portion of the Participant’s Base Compensation or
Annual Bonus is actually payable to the Participant. Each Participant Deferral
Election for a Deferral Period will also include a Form of Benefit Election, as
described in Section 10.4, with respect to Participant Deferral
Contributions and Employer Contributions, and Earnings attributable to those
contributions, for the Deferral Period.

 

5.2                                 Deferral
Contributions for 2004 Deferral Period. Notwithstanding Section 5.1, a
person who becomes a Participant on the Effective Date may, by written
Participant Deferral Election delivered to Corporation not later than September 15, 2004,
elect to defer a specified portion of the Participant’s Base Compensation
earned for services performed by the Participant during Pay Periods beginning
in the period from October 1, 2004, through December 31, 2004,
and/or a specified portion of the Participant’s Annual Bonus for 2004 (that
will be payable, if at all, in the first calendar quarter of 2005).

 

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5.3                                 New
Participants. A person who first becomes a Participant after the Effective
Date and during a Deferral Period, may make an Participant Deferral Election
with respect to Base Compensation earned by the Participant for services
performed by the Participant during Pay Periods beginning in the portion of the
initial Deferral Period after the date of the Participant Deferral Election
and/or a specified portion of the Participant’s Annual Bonus for such initial
Deferral Period only if the new Participant makes the Participant Deferral Election
within 30 days after he or she first becomes a Participant.

 

5.4                                 Limitation
on Participant Deferral Elections. A Participant may elect to defer up to
90% of the Participant’s Base Compensation and/or up to 90% of the Participant’s
Annual Bonus. The specified portion of Base Salary or Annual Bonus to be
deferred must be stated as a percentage.

 

5.5                                 Changes
in Election Procedure. The Committee may, from time to time, adopt or
modify rules and restrictions governing Participant Deferral Elections and minimum
or maximum deferral amounts.

 

6.                                       EMPLOYER CONTRIBUTIONS

 

Corporation will credit Participants with Employer
Contributions as described in this Section 6.

 

6.1                                 Qualified
Plan Supplemental Credit. Each Participant who remains a Participant on the
last day of a Qualified Plan Year and whose Total Compensation for such
Qualified Plan Year exceeds the Applicable Compensation Limit for such
Qualified Plan Year will be credited with a Qualified Plan Supplemental Credit
Employer Contribution, determined and credited to the Participant’s QPSC
Account as soon as practicable after the last day of such Qualified Plan Year,
in an amount equal to the additional amount which would have been contributed
or credited for such Qualified Plan Year to the Qualified Plans for the
Participant if the amount by which the Participant’s Total Compensation exceeds
the Applicable Compensation Limit had been included as Qualified Plan
Compensation for such Qualified Plan Year.

 

6.2                                 Qualified
Plan Makeup Credit. Each Participant who remains employed by an Employer
(whether or not such employee remains a Participant) on the last day of a
Qualified Plan Year will be credited with a Qualified Plan Makeup Credit
Employer Contribution, determined and credited to the Participant’s QPMC Account
as soon as practicable after the last day of such Qualified Plan Year, in an
amount equal to the positive difference, if any, between (a) the amount which
would have been contributed or credited for such Qualified Plan Year to the
Qualified Plans for the Participant if no Annual Deferral Contribution had been
made for the Participant under this Plan for such Qualified Plan Year and (b)
the amounts actually contributed or credited to the Qualified Plans for the
Participant for such Qualified Plan Year.

 

6.3                                 Employer
Matching Contribution. Each Participant Deferral Contribution by a
Participant will be matched by an Employer Matching Contribution in an amount
equal to 3.5% of such Participant Deferral Contribution. Such Employer Matching
Contributions will be credited to a Participant’s Employer Match Account as of
the same day or days that each

 

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corresponding
Participant Deferral Contribution is credited to his or her Participant
Deferral Contribution Account pursuant to Section 5.1.

 

6.4                                 Limitation
on Payment of Employer Contributions. Notwithstanding any other provision
of this Section 6, no Employer Contributions credited to any Participant
for any Deferral Period, including Earnings credited with respect to such
Employer Contributions, will be payable to the Participant if such Participant
accrues a benefit under any supplemental executive retirement plan or agreement
maintained by any Employer (a “SERP Arrangement”) for such Deferral Period,
except to the extent that under the terms of such SERP Arrangement there is an
offset for Employer Contributions and Earnings credited to the Participant
under this Plan.

 

7.                                       DEFERRAL ACCOUNTS

 

7.1                                 Deferral
Accounts and Subaccounts.

 

7.1.1                        Participant
Deferral Account. All Participant Deferral Contributions made by a
Participant and all Earnings attributable to such Participant Deferral
Contributions under the Plan will be credited to a separate bookkeeping account
maintained by Corporation in the name of the Participant (a “Participant
Deferral Contribution Account”).

 

7.1.2                        Employer
Contribution Accounts. Employer Contributions will be credited as follows:

 

(a)                                  All
Qualified Plan Supplemental Credit Employer Contributions, Qualified Plan
Makeup Credit Employer Contributions, and Employer Matching Contributions for a
Participant and all Earnings attributable to such Employer Contributions will
be credited (as of the dates specified in Section 6) to separate
bookkeeping accounts maintained by Corporation in the name of the Participant
(a “QPSC Account,” a “QPMC Account,” and an “Employer Match Account”).

 

(b)                                 The
QPSC, QPMC, and Employer Match Accounts maintained for each Participant will be
referred to collectively as the Participant’s Employer Contribution Accounts.

 

7.1.3                        Deferral
Account. Except where the context specifically refers to either a
Participant’s Participant Deferral Contribution Account or Employer
Contribution Accounts, references in this Plan to a Participant’s “Deferral
Account” mean both the Participant Deferral Contribution Account and the
Employer Contribution Accounts.

 

7.1.4                        Subaccounts.
Each Participant’s Deferral Account will have separate subaccounts (“Subaccounts”)
as described in this Section.

 

(a)                                  Annual
Subaccount. Each Participant will have an Annual Subaccount for each
Deferral Period designated for the calendar year corresponding to the Deferral
Period (e.g., a 2004 Subaccount, a 2005 Subaccount, etc.) maintained to reflect
(i) the Participant Deferral Contributions

 

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and Employer Matching Contributions made or credited
to the Participant’s Deferral Account for such Deferral Period and the
Qualified Plan Supplemental Credit and Qualified Plan Makeup Credit Employer
Contributions, if any, credited to the Participant’s Deferral Account that
relate to the Qualified Plan Year that corresponds to the Deferral Period, and
(ii) Earnings attributable to such contributions.

 

(b)                                 Investment
Subaccounts. Each Annual Subaccount will be further divided into
Subaccounts to reflect the Investment Funds designated by the Participant as
provided in Section 7.2.3.

 

7.1.5                        Nature
of Accounts and Subaccounts. Deferral Accounts and Subaccounts are
record-keeping devices utilized for the sole purpose of determining the
benefits payable under the Plan and will not constitute a separate fund of
assets.

 

7.2                                 Additional
Amounts Credited as Growth Factor.

 

7.2.1                        General.
Each Deferral Account will accrue an additional amount as described in Section 7.2.2
referred to as “Growth Factor” from the date Participant Deferral Contributions
and/or Employer Contributions are credited to a Deferral Account until the date
of final payment of the entire balance of a Deferral Account.

 

7.2.2                        Growth
Factor. For any Measurement Period, the Growth Factor will be the amount of
investment income or loss (including unrealized appreciation or depreciation)
that would have been realized had an amount equal to the total balance in the
Deferral Account as of the first date of the Measurement Period been invested
in the Investment Fund or Funds described in Section 7.2.3 specified for
that Measurement Period by the Participant.

 

7.2.3                        Investment
Funds. For purposes of determining Growth Factor, a Participant may specify
one or a combination of Investment Funds designated from time to time by, or at
the direction of, the Committee. The Investment Funds will be selected and may
be changed from time to time by the Committee; provided however that the
Committee will limit the selected Investment Funds to the extent it determines
to be necessary to meet requirements of applicable law and Treasury Regulations
that investment options under the Plan be “comparable” to the investment
options which a Participant may elect under the Qualified Plans. Pursuant to forms
and procedures to be designated by or at the direction of the Committee
(including such limitations with respect to the timing and frequency of
modifications as the Committee may determine to be appropriate), a Participant
may modify his or her designation of Investment Funds from time to time. A
Participant may:

 

(a)                                  Specify
what percentage of future Participant Deferral Contributions and Employer
Contributions are to be deemed to be invested in particular Investment Funds;
and/or

 

(b)                                 Provide
for reallocation of amounts from one Investment Fund to one or more other
Investment Funds.

 

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7.2.4                        Subaccounts.
All amounts in a Deferral Account deemed invested in a particular Investment
Fund will be treated as held in a separate Investment Subaccount as described
in Section 7.1.4(b) corresponding to that Investment Fund.

 

7.2.5                        No
Beneficial Interest. Investment Funds are solely for the purpose of
computing the amount of Growth Factor to be credited to or charged against a
Deferral Account for any Measurement Period. The Employers may, but will have
no obligation to, actually maintain investments corresponding to the Investment
Funds. In the event the Employers (directly or indirectly through a trust as
described in Section 8.2) make actual investments corresponding to
Investment Funds, no Participant or Beneficiary will have any rights or
beneficial interest in such actual investments other than their rights as
unsecured creditors of the Employers with respect to benefits under the Plan.

 

7.3                                 Withholding.
Any withholding of taxes or other amounts with respect to Employer
Contributions or the accrual of Growth Factor under the Plan that is required
by federal, state, or local law will be withheld from the Participant’s Base
Compensation or otherwise paid by the Participant.

 

7.4                                 Determination
of Deferral Accounts and Subaccounts. Each Participant’s Deferral Account
and Subaccounts as of the last day of each Measurement Period will consist of
the balance of the Deferral Account and Subaccounts as of the first day of the
Measurement Period, adjusted as follows:

 

7.4.1                        Participant
Deferral Contributions. Participant Deferral Contributions will be credited
as provided in Section 5.1 on the same dates as the corresponding
non-deferred compensation is actually payable under the Employer’s normal
payroll practices.

 

7.4.2                        Employer
Contributions. Employer Contributions will be credited as of the dates
specified in Section 6 for each type of Employer Contribution;

 

7.4.3                        Growth
Factor. Growth Factor will be credited (or charged) to reflect an amount
equivalent to the investment returns (or loss) that would have been realized
during the Measurement Period had the balance in each Subaccount as of the
first day of the Measurement Period been invested in the actual investments
corresponding to the Investment Fund for the Subaccount during such Measurement
Period;

 

7.4.4                        Distributions.
Distributions of Plan benefits to a Participant or Beneficiary during the
Measurement Period will be charged on a pro rata basis to reduce each
Subaccount as of the date of such distribution; and

 

7.4.5                        Other
Adjustments. The Committee may direct such other adjustments (increases or
decreases) as the Committee may determine are necessary and appropriate,
including but not limited to a reduction caused by the Employer’s payment of
the Participant’s share of any payroll taxes attributable to Earnings.

 

7.5                                 Valuation
Dates for Distributions. For purposes of this Section 7, and for
purposes of determining the Measurement Period for any period in which a
distribution is made

 

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to a Participant
or a Beneficiary, the date of such distribution will be a special Valuation
Date (and will thus constitute the end of that Measurement Period).

 

8.                                       SOURCE OF BENEFITS

 

8.1                                 Unfunded
Plan. This Plan and the benefits payable
pursuant to the Plan are unfunded and will be payable only from the general
assets of the Employers. The Employers do not represent that a specific portion
of their assets will be used to provide the benefits under the Plan. Participants
or Beneficiaries will not have any ownership or beneficial interest in any
assets of any Employer. Nothing in this Plan will be deemed to create a trust
of any kind or create any fiduciary relationship. To the extent that any person
acquires a right to receive payments from any Employer under this Plan, such
rights will be no greater than the rights of any unsecured general creditor of
such Employer.

 

8.2                                 Trust.
Notwithstanding the foregoing, the Employers may (but are not required to)
deposit moneys under any trust established by Corporation (a “Trust”) for the
sole purpose of paying benefits under the Plan from those funds and the income
on those funds, unless such Trust assets are required to satisfy the
obligations of the Employers to their general creditors. Such Trust must meet
the requirements of a so-called “Rabbi Trust” under Revenue Procedure 92-64,
1992-2 CB 422.

 

9.                                       VESTING AND FORFEITURE

 

9.1                                 Participant
Deferral Accounts. Each Participant is always fully Vested in his or her
Participant Deferral Account.

 

9.2                                 Employer
Contribution Accounts. A Participant will become fully Vested in his or her
Employer Contribution Accounts (the QPSC Account, the QPMC Account, and the
Employer Match Account) upon attaining Retirement Age or upon the Participant’s
death, Disability, or termination of employment with an Employer for any reason
within 24 months following a Change in Control. A Participant who terminates
employment with an Employer prior to attaining Retirement Age for any other
reason will become Vested in such Employer Contributions Accounts as follows:

 

9.2.1                        QPSC
Account and QPMC Account. A Participant’s QPSC Account and QPMC Account
will become Vested at the same rate and manner as they would have otherwise
vested under the underlying Qualified Plans had the Employer Contributions to
such Accounts had been made to the Qualified Plans.

 

9.2.2                        Employer
Match Account. A Participant’s Employer Match Account will become fully
Vested upon completion of two Years of Service.

 

9.3                                 Forfeitures.
A Participant who terminates employment with an Employer will forfeit that
percentage of his or her Employer Contribution Accounts (and each Subaccount)
that has not become Vested as of the date of such termination. Amounts
forfeited will revert to the Employers to be used as the Employers determine in
their sole discretion. No Participant or Beneficiary will have any interest in
or claim against any forfeited amounts.

 

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10.                                 PLAN BENEFITS

 

10.1                           During
Employment. Except as expressly provided in Section 10.1.1 with
respect to an unforeseeable emergency and in Section 10.1.2 with respect
to In-Service Distributions, no portion of a Participant’s Deferral Account may
be distributed to or for the benefit of the Participant before the Participant’s
separation of service from an Employer.

 

10.1.1                  Unforeseeable
Emergencies. The Vested portion of a Participant’s Deferral Account may be
distributed to the Participant before termination of employment in connection
with an unforeseeable emergency (as defined below). Upon a finding that a
Participant has suffered an unforeseeable emergency, the Committee may, in its
sole discretion, make distributions from the Vested portion of the Participant’s
Deferral Account to the extent provided in this Section. An unforeseeable
emergency is a severe financial hardship to the Participant resulting from a
sudden and unexpected illness or accident of the Participant, the Participant’s
Spouse, or of a Dependent of the Participant, loss of the Participant’s
property due to casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant. The circumstances that will constitute an unforeseeable emergency
will depend upon the facts of each case. Examples of what are not considered to
be unforeseeable emergencies include the need to send a Participant’s child to
college or the desire to purchase a home. Any such distribution approved by the
Committee will be limited to the amount necessary to meet the emergency plus
amounts necessary to pay taxes reasonably anticipated as a result of the
distribution, after taking into account the extent to which such hardship is or
may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the Participant’s assets (to the extent the liquidation of
such assets would not itself cause severe financial hardship.)  Such distributions will be paid in a lump sum
and will be charged to the Participant’s Deferral Account. A pro rata portion
of such distribution will be treated as a distribution out of each Subaccount. The
Committee may impose such restrictions or additional requirements with respect
to distributions in connection with an unforeseeable emergency as the Committee
determines to be necessary or appropriate to comply with Treasury Regulations.

 

10.1.2                  In-Service
Distributions. A Participant will be permitted to receive an In-Service
Distribution from his or her Deferral Account subject to the following
restrictions:  An election to receive an
In-Service Distribution must be made at the same time a Participant makes a
Participant Deferral Election for a particular Deferral Period and will relate
only to the Annual Subaccount (as described in Section 7.1.4(a))
corresponding to that Deferral Period. Such election must specify a
distribution date, which may not be earlier than five years after the first day
of the Deferral Period covered by the election. Such an In-Service Distribution
election may be modified (subject to the restrictions set forth in Section 10.4.5);
provided however that any such modification may not be made less than 12 months
prior to the date the In-Service Distribution was originally scheduled. In-Service
Distributions will be made in a lump sum and will include the Participant’s
entire Annual Subaccount covered by such election. If the Participant
terminates employment for any reason prior to the specified In-Service
Distribution date, distribution of the Participant’s Annual Subaccount will be
made as

 

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provided in Section 10.2 in accordance with the
Participant’s Form of Benefit Election for the Deferral Period.

 

10.2                           After
Termination of Employment. If a Participant terminates employment with an
Employer for any reason, including death, Corporation will pay to the
Participant (or the Participant’s Beneficiary, in case of death) benefits equal
to the Vested balance in the Participant’s Deferral Account. Except as provided
below, Plan benefits as a result of death or other termination of employment
will be paid in the form elected by the Participant as provided in Section 10.4.
Notwithstanding a Participant’s installment election, if the aggregate balance
of the Participant’s Deferral Account is $25,000 or less on the Valuation Date
immediately preceding the date of the Participant’s termination of employment,
the entire benefit will be paid in a lump sum within 65 days of the termination
date.

 

10.3                           Distributions
to Specified Employees and Reporting Persons. Notwithstanding any other
provision of the Plan, unless the Committee expressly determines that delays as
described in paragraphs (a) and/or (b) of this Section are not required
under applicable law or Treasury Regulations to avoid constructive receipt of
Plan benefits or to avoid having Plan benefits treated as excess parachute
payments under IRC §§ 280G and 4999, (a) distributions to a Participant
who is a Specified Employee may not be made or commenced earlier than six
months after the date of the Participant’s separation of service from an
Employer, and (b) following a Change in Control, distributions to a Participant
who is a Reporting Person may not be made or commenced earlier than one year
following the Change in Control.

 

10.4                           Election
of Form of Benefit Payment.

 

10.4.1                  Election.
Pursuant to forms and procedures prescribed by, or at the direction of, the
Committee, each Participant may, as part of each Participant Deferral Election
for each Deferral Period, elect the form of payment of the Participant’s
benefits under the Plan (a “Form of Benefit Election”) with respect to the
Participant’s Annual Subaccount (as described in Section 7.1.4(a))
corresponding to that Deferral Period. For each Deferral Period, a Participant
must make a Form of Benefit Election governing the form of payment for the
Participant’s entire Annual Subaccount corresponding to that Deferral Period.

 

10.4.2                  Available
Forms of Payment. The available forms of payment of Plan benefits are:

 

(a)                                  A
lump sum amount equal to the applicable Vested portion of the Annual
Subaccount; or

 

(b)                                 Annual
installments of the Vested portion of the Annual Subaccount amortized over a
period designated by the Participant of not more than 15 years. Growth Factor
on the unpaid balance will continue to be credited to Subaccounts as provided
in Section 7.4.

 

10.4.3                  Default Form
of Payment. Plan benefits with respect to an Annual Subaccount will be
payable in a lump sum if no effective Form of Benefit Election is in

 

9

 

effect for that Annual Subaccount at the time the
Participant first becomes entitled to receive payment of all or any portion of
the Annual Subaccount.

 

10.4.4                  Form of
Payment to Beneficiary. A Participant who elects payment in installments
for an Annual Subaccount may also elect whether, in the event of the
Participant’s death prior to complete distribution of the Vested portion of the
Participant’s Annual Subaccount:

 

(a)                                  The
remaining amount of the Participant’s Annual Subaccount is to be paid in a lump
sum to the Beneficiary (in which case payment will be made within 30 days after
the date of death), or

 

(b)                                 Installment
payments are to be made to the Beneficiary over the elected installment period
(or over the remainder of the period).

 

Installment
payments will be made to the Beneficiary over the elected installment period
(or the remainder of that period) if no effective election with respect to the
form of payment to the Beneficiary is in effect for that Annual Subaccount at
the time of the Participant’s death.

 

10.4.5                  Changes to
Form of Benefit Election. A Participant may amend, revoke, or replace a
Form of Benefit Election for a particular Annual Subaccount, subject to the
following restrictions (unless the Committee expressly waives or modifies one
or more of such restrictions based on the Committee’s determination that such
waiver or modification would not result in constructive receipt or cause the
Plan not to meet the requirements of applicable law or Treasury Regulations):

 

(a)                                  In
no event may a Participant change his or her Form of Benefit Election for an
Annual Subaccount to accelerate the time or schedule of any distribution
under the Plan.

 

(b)                                 No
changes to an existing Form of Benefit Election for an Annual Subaccount may be
made after the Participant (or a Beneficiary) has received or become entitled
to receive any payment of Plan benefits for the Annual Subaccount covered by
that election.

 

(c)                                  No
change to an existing Form of Benefit Election for an Annual Subaccount may
take effect until at least 12 months after the date of such amended Form of
Benefit Election.

 

(d)                                 With
respect to distributions other than distributions upon the death or Disability
of a Participant or distributions under Section 10.1.1, the first date on
which a distribution or installment may be made under the amended Form of
Benefit Election for an Annual Subaccount may not be earlier than five years
after the date the distribution or payment would otherwise have been made.

 

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(e)                                  In
no event may a Participant make more than one amendment to a Form of Benefit
Election for any particular Annual Subaccount to delay any distribution or
payment.

 

(f)                                    The
Committee may modify the foregoing restrictions and/or adopt other restrictions
from time to time to provide for efficient administration of the Plan and to
cause the Plan to comply with applicable law and Treasury Regulations.

 

10.5                           Lump
Sum Payments. Subject to the limitations provided in Section 10.3, for
lump sum payments, the balance of a Participant’s Annual Subaccount (and
Subaccounts) will be determined pursuant to Section 7.4 as of the last
Valuation Date that is at least five business days prior to the payment date
specified in this Section 10.5. Lump sum payments will be made, as elected
by the Participant in his or her Form of Benefit Election for an Annual
Subaccount, either within 65 days of the termination of employment or, if later
and if elected by the Participant in the Form of Benefit Election, on the first
business day of the first calendar year beginning after the date of
termination.

 

10.6                           Installment
Payments.

 

10.6.1                  Installments.
Subject to the limitations provided in Section 10.3, the first installment
will be made on the first day of the second calendar month beginning after
termination of employment (the “Initial Installment Date”) and on subsequent
anniversaries of such date (“Installment Dates”). The amount of each
installment will be equal to the balance of the Annual Subaccount as of the
last Valuation Date that is at least five business days prior to the
Installment Date divided by the number of remaining installments (including the
installment payment being determined).

 

Example:  If a Participant terminated employment on September 20,
2005, and had elected annual installments over five years, and if the Committee
has adopted daily Valuation Dates, the first installment would be due November 1,
2005, and would be equal to one-fifth of the balance of the Annual Subaccount
on the October 24, 2005, Valuation Date. The second installment would be
due November 1, 2006, and would be equal to one-fourth of the balance of
the Annual Subaccount on the October 24, 2006, Valuation Date.

 

10.6.2                  Growth Factor.
The Annual Subaccount (and Subaccounts) will continue to accrue Growth Factor
as provided in Section 7.4 until the final installment payment is made.

 

10.7                           Payment
to Guardian. If a distribution is payable to a minor or a person declared
incompetent or to a person incapable of handling the disposition of property,
the Committee may direct payment 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 may deem appropriate prior to distribution. Such
distribution will completely discharge the Committee from all liability with
respect to such benefit.

 

11

 

11.                                 BENEFICIARY DESIGNATION

 

11.1                           Beneficiary
Designation. Each Participant will have the right, at any time, to
designate one or more persons or an entity as Beneficiary (both primary as well
as secondary) to whom benefits under this Plan will be paid in the event of a
Participant’s death prior to complete distribution of the Participant’s
Deferral Account. Each Beneficiary designation must be in a written form
approved by the Committee and will be effective only when filed with the
Committee during the Participant’s lifetime. Designation by a married
Participant of a Beneficiary other than the Participant’s spouse will not be
effective unless the spouse executes a written consent that acknowledges the
effect of the designation and is witnessed by a notary public, or the consent
cannot be obtained because the spouse cannot be located.

 

11.2                           Amendments.
Except as provided below, any nonspousal designation of Beneficiary may be
changed by a Participant without the consent of such Beneficiary by the filing
of a new designation with the Committee. The filing of an effective new
designation will cancel all designations previously filed.

 

11.3                           Change
in Marital Status. If the Participant’s marital status changes after the
Participant has designated a Beneficiary, the following provisions will apply:

 

11.3.1                  Unmarried at
Designation. If the Participant is married at death but was unmarried when
the designation was made, the designation will be void unless the spouse has
consented to it in the manner prescribed above.

 

11.3.2                  Married at
Designation but Unmarried at Death. If the Participant is unmarried at
death but was married when the designation was made:

 

(a)                                  The
designation will be void if the spouse was named as Beneficiary.

 

(b)                                 The
designation will remain valid if a nonspouse Beneficiary was named.

 

11.3.3                  Different
Spouse. If the Participant was married when the designation was made and is
married to a different spouse at death, the designation will be void unless the
new spouse has consented to it in the manner prescribed above.

 

11.4                           No
Beneficiary Designation. If any Participant fails to designate a
Beneficiary in the manner provided in this Section 11, or if the
Beneficiary designated by a Participant dies before the Participant or before
complete distribution of the Participant’s benefits, the Participant’s
Beneficiary will be the person in the first of the following classes in which
there is a survivor:

 

11.4.1                  Spouse. The
Participant’s surviving spouse;

 

11.4.2                  Children.
The Participant’s children in equal shares, except that if any of the children
predeceases the Participant but leaves issue surviving, then such issue will
take by right of representation the share the parent would have taken if
living; or

 

12

 

11.4.3                  Estate. The
Participant’s estate.

 

12.                                 ADMINISTRATION

 

The Plan will be administered by the Committee. The
Committee will have the exclusive authority and responsibility for all matters
in connection with the operation and administration of the Plan, including
without limitation the authority to make, modify, interpret and enforce
appropriate rules and regulations for the administration of the Plan and to
decide or resolve any and all questions regarding the interpretation of Plan
provisions. A majority vote of the Committee members will control any Committee
decision. The Committee’s powers and duties include, but are not limited to,
the following:

 

(a)                                  Responsibility
for the compilation and maintenance of all records necessary in connection with
the Plan;

 

(b)                                 Authorizing
the payment of all benefits and expenses of the Plan as they become payable
under the Plan; and

 

(c)                                  Authority
to engage such legal, accounting, and other professional services as it may
deem proper.

 

Decisions by the Committee will be final and binding
upon all parties affected by the Plan, including Participants and Beneficiaries
of Participants.

 

The Committee may rely on information and
recommendations provided by supervisory management. The Committee may delegate
to a subcommittee composed of less than all Committee members or to supervisory
management who are not Committee members the responsibility for decisions that
it may make or actions that it may take under the terms of the Plan, subject to
the Committee’s reserved right to review such decisions or actions and modify
them when necessary or appropriate under the circumstances. The Committee will
not allow any Participant to obtain control over decisions or actions that
affect that Participant’s Plan benefits.

 

13.                                 MISCELLANEOUS

 

13.1                           Nonassignability
of Benefits. Except as otherwise provided by applicable law, a Participant’s
benefits under the Plan, including the right to receive payment of the Deferral
Account or any Subaccount, may not be sold, transferred, anticipated, assigned,
pledged, hypothecated, seized by legal process, subjected to claims of
creditors in any way, or otherwise disposed of.

 

13.2                           Governing
Law. This Plan and any amendments will be construed, administered, and
governed in all respects in accordance with applicable federal law and the laws
of the State of Delaware.

 

13.3                           No
Right of Continued Employment. Nothing in the Plan will confer upon any
person the right to continue in the employ of any Employer or interfere in any
way with the right of any Employer to terminate the person’s employment at any
time.

 

13

 

13.4                           Withholding
Taxes. The Employers will withhold any taxes required by law to be withheld
in connection with payment of benefits under this Plan. In the event any
Employer will be required to withhold taxes with respect to Employer
Contributions or the accrual of Growth Factor pursuant to the Plan, the
Employer will have the right to require a Participant to reimburse them for any
such taxes.

 

14.                                 CLAIMS PROCEDURE

 

14.1                           Following
Claims Procedure. Any Participant or Death Beneficiary (a “Claimant”) may
file a claim for benefits under the Plan by following the procedure set forth
in this Section.

 

14.2                           Authorized
Representative. A Claimant may appoint an authorized representative to
represent the Claimant at any stage of the claims procedure. The appointment is
made by a statement in writing naming the person who is to be the Claimant’s
authorized representative and signed by the Claimant.

 

14.3                           Filing
Initial Claim. A claim must be filed by personally delivering or mailing a
written communication making the claim for benefits, prepared by either the
Claimant or the Claimant’s authorized representative, to the Committee, which
is Plan Administrator for the Plan, for action upon the claim.

 

14.4                           Denial
of Initial Claim.

 

14.4.1                  Time Period
for Denial Notice.

 

(a)                                  General.
The Committee will make a decision on the claim as soon as practicable. If the
claim is wholly or partially denied, the Committee will, within a reasonable
period of time after receipt of the claim, furnish the Claimant written or
electronic notice setting forth, in a manner calculated to be understood by the
Claimant, the information set forth below. Any electronic notice must comply
with 29 CFR Section 2520.104b-1(c)(1)(i), (iii), and (iv). Except as
provided in Section 14.4.1(b), in no event may the response to the initial
claim be given more than 90 days after the filing of the claim, unless
special circumstances require an extension of time for processing the claim. If
an extension is required, written notice of the extension must be furnished to
the Claimant prior to the termination of the initial 90-day period. In no event
may the extension exceed a period of 90 days from the end of the initial
response period. The extension notice must indicate the special circumstances
requiring an extension of time and the date by which the Committee expects to
render the final decision. The time period for providing notice of the decision
on the claim will begin when the claim is filed in accordance with the Plan’s
procedures, without regard to whether all the information necessary to make a
decision on the claim accompanies the filing.

 

(b)                                 Disability
Claims. In the case of a claim for disability benefits, the Committee must
notify the Claimant of a claim denial within a reasonable period of time, but
not later than 45 days after receipt of the claim. This period may be
extended for up to 30 days, provided that the Committee determines that
the

 

14

 

extension is necessary due to matters beyond the
control of the Committee and notifies the Claimant, before the end of the
initial 45-day period, of the circumstances requiring an extension of time and
the date by which the Committee expects to make a decision. If, before the end
of the first 30-day extension period, the Committee determines that, due to
matters beyond the control of the Committee, a decision cannot be made within
that extension period, the period for making the determination may be extended
for up to an additional 30 days, provided that the Committee notifies the
Claimant, before the end of the first 30-day extension period, of the
circumstances requiring the extension and the date by which the Committee
expects to make a decision. In the case of any extension, the extension notice
must specifically explain the standards on which entitlement to a benefit is
based, the unresolved issues that prevent a decision on the claim, and the
additional information, if any, needed to resolve those issues. If the
extension is necessary because the Claimant failed to submit the information
necessary to resolve the claim, the Claimant will be afforded at least
45 days to provide the specified information, and the period for deciding
the claim will be tolled from the date the extension notice is sent to the
Claimant until the date the Claimant responds to the request for additional
information.

 

14.4.2                  Contents of
Notice.

 

(a)                                  General.
If the claim is wholly or partially denied, the denial notice must state:

 

(i)                                     The
specific reason or reasons for the denial;

 

(ii)                                  Reference
to specific provisions of the Plan on which the denial is based;

 

(iii)                               A
description of any additional material or information necessary for the
Claimant to complete the claim and an explanation of why such material or
information is necessary; and

 

(iv)                              An
explanation of the claim review procedure and the time limits applicable to
such procedure set forth in this Section 14, including a statement of the
Claimant’s right to bring a civil action under ERISA Section 502(a)
following a denial of the claim on review.

 

(b)                                 Disability
Claims. If a claim for disability benefits is denied, the denial notice
must contain the following additional information:

 

(i)                                     If
an internal rule, guideline, protocol, or other similar criterion was relied on
in deciding the claim, the notice must either provide the specific rule,
guideline, protocol, or other similar criterion, or state that the rule,
guideline, protocol, or other similar criterion was relied on in making the
decision and that a copy will be provided free of charge to the Claimant on
request.

 

15

 

(ii)                                  If
the claim denial was based on a medical necessity, experimental treatment, or
similar exclusion or limit, the notice must contain either an explanation of
the scientific or clinical judgment for the decision, applying the terms of the
Plan to the Claimant’s medical circumstances, or a statement that such an
explanation will be provided free of charge on request.

 

14.5                           Appeal
of Denied Claim.

 

14.5.1                  General. If the claim is denied in whole or in part pursuant to Section 14.4,
the Claimant may, within a reasonable period of time, taking into consideration
the nature of the benefit that is the subject of the claim and other attendant
circumstances, file a request with the Committee for a full and fair review. Except
as provided in Section 14.5.2, in no event may the period for requesting
review expire less than 60 days after receipt of written or electronic
notification of denial. If the request for review is not made on a timely
basis, the Claimant will be deemed to have waived the right to review.

 

The appeal is made
by personally delivering or mailing a written request for review, prepared by
either the Claimant or the Claimant’s authorized representative, to the
Committee. The Claimant or the Claimant’s duly authorized representative may,
at or after the time of making the appeal, review pertinent documents and
submit issues and comments in writing. The Committee’s review will take into
account all information submitted by the Claimant relating to the claim,
whether or not such information was submitted or considered in the initial
claim determination. The Claimant will be provided, upon request and free of
charge, reasonable access to, and copies of, information relevant to the
Claimant’s claim.

 

14.5.2                  Disability
Claims. With respect to a request for review of a denied claim for
disability benefits, the following additional requirements will apply:

 

(a)                                  The
Claimant will have at least 180 days after receipt of the notice of denial
to request a review of the claim.

 

(b)                                 The
review of the claim will not afford deference to the initial decision on the
claim, and will be conducted by an appropriate named fiduciary of the Plan who
is neither the individual who made the decision that is the subject of the
appeal, nor a subordinate of such an individual.

 

(c)                                  If
the initial claim denial was based in whole or in part on a medical judgment,
including determinations with regard to whether a particular treatment, drug,
or other item is experimental, investigational, or not medically necessary or
appropriate, the appropriate named fiduciary will consult with a health care
professional who has appropriate training and experience in the field of
medicine involved in the medical judgment. This health care professional may
not be an individual who was consulted in connection with the decision that is
the subject of the appeal, or a subordinate of such an individual.

 

16

 

(d)                                 The
Committee must identify to the Claimant any medical or vocational experts whose
advice was obtained on behalf of the Plan in connection with the initial
decision on the claim, without regard to whether the advice was relied on in
making the initial decision.

 

14.6                           Review
of Appeal.

 

14.6.1                  Time Period
for Decision on Review.

 

(a)                                  General.
The Committee will review the appeal and act on the appeal. Except as provided
in Section 14.6.1(b), the decision will be made promptly, and will not
ordinarily be made later than 60 days after the receipt by the Committee
of the written request for review, unless special circumstances require an
extension of time for processing, in which case written notice of the extension
will be furnished the Claimant prior to the commencement of the extension, and
in which case a decision will be rendered as soon as possible but not later
than 120 days after the receipt of the request for review. The extension
notice must indicate the special circumstances requiring an extension of time
and the date by which the Committee expects to render the final decision. The
time period within which the Committee must provide notice of the decision on
review will begin when the request for review is filed in accordance with the
Plan’s procedures, without regard to whether all the information necessary to
make the decision on review accompanies the filing. If an extension is
necessary due to the Claimant’s failure to submit information necessary to
resolve the claim, the period for making a decision on review will be tolled
from the date the extension notice is sent to the Claimant until the date the Claimant
responds to the request for additional information.

 

(b)                                 Disability
Claims. In the case of a claim for disability benefits, the Committee must
notify the Claimant of the decision on review within a reasonable period of
time, but not later than 45 days after receipt of the request for review,
unless special circumstances (such as the need to hold a hearing) require an
extension of time for processing. If an extension is required, the decision
will be made and furnished to the Claimant not later than 90 days after
receipt of the request for review. The Claimant must be notified in writing of
any extension within 45 days after the request for review was filed. The
extension notice must indicate the special circumstances requiring an extension
of time and the date by which the Committee expects to render the decision on
review. If an extension is necessary due to the Claimant’s failure to submit
information necessary to resolve the claim, the period for making a decision on
review will be tolled from the date the extension notice is sent to the
Claimant until the date the Claimant responds to the request for additional
information.

 

14.6.2                  Content and
Form of Notice.

 

(a)                                  General.
The decision on review must be in writing or by electronic notification and
must include specific reasons for the decision, written

 

17

 

in a manner calculated to be understood by the
Claimant, and references to the specific provisions of this Plan on which the
decision is based. The decision on review must inform the Claimant that he or
she is entitled to receive, upon request and free of charge, reasonable access
to, and copies of, information relevant to the claim, and that he or she may
bring an action under ERISA Section 502(a). A copy of the decision on
review must be furnished to the Claimant.

 

(b)                                 Disability
Claims. With respect to claims for disability benefits, the notice of the
decision on review must contain the information described in Section 14.4.2(b)(i)
and 14.4.2(b)(ii) and must include the following statement: “You and your plan
may have other voluntary alternative dispute resolution options, such as
mediation. One way to find out what may be available is to contact your local
U. S. Department of Labor Office and your state insurance regulatory agency.”

 

14.7                           Further
Review. Any further review, judicial or otherwise, of the decision on the
appeal will be limited to whether, in the particular instance the Committee
acted arbitrarily or capriciously in the exercise of its discretion. In no
event will any such further review, judicial or otherwise, be on a de novo
basis as the Committee has discretionary authority to determine eligibility for
benefits and to construe the terms of this Plan.

 

14.8                           Consistent
Application. The Committee will establish administrative processes and
safeguards to ensure and verify that claim determinations are made in
accordance with the Plan and that Plan provisions have been applied
consistently with respect to similarly situated Claimants, as required by
applicable law.

 

15.                                 AMENDMENTS AND TERMINATION

 

Corporation’s Board of Directors has the power to
terminate this Plan at any time or to amend this Plan at any time and in any
manner that it may deem advisable; provided however that any such amendment
that would materially change the benefits provided under the Plan will be
subject to the prior approval of Corporation’s Compensation Committee. In the
event of termination of the Plan, Participant Deferral Contributions and
Employer Contributions credited and Earnings accrued pursuant to the Plan prior
to the effective date of the termination will continue to be subject to the
provisions of the Plan as if the Plan had not been terminated.

 

16.                                 DEFINITIONS

 

For purposes of this Plan, capitalized terms not
otherwise defined in the Plan have the following meanings.

 

“Annual Bonus” means, for each
Participant, the amount (if any) payable to the Participant for a calendar year
under Corporation’s Annual Cash Incentive Award Plan, as such plan or program is
amended or modified from time to time.

 

“Applicable Compensation Limitation” means
the annual compensation limit amount specified in IRC § 401(a)(17),
after adjustment as provided in IRC § 401(a)(17)(B).

 

18

 

“Base Compensation” means
regular base salary, excluding: Annual Bonuses; Employer Contributions under
the Plan; other bonuses; noncash fringe benefits; income or gain from the
grant, vesting, or exercise of stock, restricted stock, or stock options; and
employer contributions to any employee pension plan, welfare benefit plan, or
other employee benefit plan, program, or arrangement. For purposes of the Plan,
Base Compensation is determined before deducting from base salary a Participant’s
elective pre-tax contributions to any 401(k) plan or salary reduction
contributions to any cafeteria plan.

 

“Beneficiary” means the person
or persons designated by a Participant as provided in Section 11 to whom
benefits under this Plan will be paid in the event of a Participant’s death
prior to complete distribution of the Participant’s Deferral Account.

 

“Change in Control” means:

 

(a)                                  The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act (a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
either (i) the then outstanding shares of common stock of Corporation (the “Outstanding
Corporation Common Stock”) or (ii) the combined voting power of the then
outstanding voting securities of Corporation entitled to vote generally in the
election of directors (the “Outstanding Corporation Voting Securities”);
provided, however, that for purposes of this subsection (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 pursuant to a transaction which complies with clauses (i), (ii)
and (iii) of subsection (c) of this definition; or

 

(b)                                 Individuals
who, as of the Effective Date, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the Effective
Date whose election, or nomination for election by Corporation’s shareholders,
was approved by a vote of at least a majority of the directors then comprising
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
by Corporation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of Corporation or the
acquisition of assets of another entity (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, respectively,
of the Outstanding Corporation Common Stock and Outstanding Corporation Voting
Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 60% of, respectively, the then outstanding
shares of common stock and the combined

 

19

 

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 or more subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Business Combination, of the
Outstanding Corporation Common Stock and Outstanding Corporation Voting
Securities, as the case may be, (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% 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 a complete liquidation or dissolution of
Corporation.

 

“Committee” means a committee of
not less than three individuals designated by Corporation’s Chief Executive
Officer to administer the Plan. Members of the Committee may be Participants in
the Plan. The initial members of the Committee on the Effective Date are Curtis
M. Stevens, Russell S. Pattee and Andrea L. Vicino.

 

“Deferral Account” means the
record-keeping account maintained as provided in Section 7.1 to reflect a
Participant’s benefits under the Plan. Unless the context otherwise requires,
references to a Participant’s Deferral Account include both the Participant’s
Participant Deferral Contribution Account and Employer Contribution Accounts
and all Subaccounts of both such Accounts.

 

“Deferral Period” means a
calendar year or, for 2004, the period beginning October  1, 2004  and ending December 31, 2004. For a Participant
who becomes a Participant after the beginning of a calendar year, the initial
Deferral Period for such Participant will be the portion of such calendar year
beginning on the first day of the first Pay Period beginning at least 30 days
after the individual became a Participant.

 

“Dependent” means the dependents
of a Participant within the meaning of IRC § 152(a).

 

“Disability” A Participant will
be deemed to be Disabled for purposes of this Plan under the following
conditions:

 

(a)  The Participant’s total and permanent
disability has existed for a period of five consecutive months; and

 

(b)  The Participant’s total and permanent
disability, together with the period of its existence, has been substantiated
by the Committee on the basis of medical reports and a

 

20

 

Social Security disability award. The Committee will have the right to
require a medical report or reports from a doctor or doctors of its own
selection, but at Corporation’s expense.

 

“Earnings” with respect to a
Participant’s Deferral Account means the net amount of Growth Factor credited
to the Participant’s Deferral Account and Subaccounts as described in Section 7.2.

 

“Employers” mean Corporation and
any subsidiary or affiliate of Corporation that is an employer, for income tax
purposes, of one or more Participants.

 

“Employer Contribution” means a
contribution by an Employer for a Participant as described in Section 6.

 

“Employer Contribution Accounts”
means the portions of a Participant’s Deferral Account attributable to Employer
Contributions credited on behalf of the Participant. References to a
Participant’s Employer Contribution Accounts include the Participant’s QPSC
Account, QPMC Account, and Employer Match Account as described in Section 7.1.2.

 

“Employer Match Account” means
an Employer Contribution Account as described in Section 7.1.2 to which
Employer Matching Contributions are credited.

 

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

 

“Investment Fund” means an
investment as described in Section 7.2.3 for the sole purpose of
calculating the Growth Factor to be credited to or charged against a
Participant’s Deferral Account. The Committee will designate the Investment
Funds available under the Plan and may add to, subtract from, or otherwise
change the designated available Investment Funds from time to time.

 

“IRC” means the Internal Revenue
Code of 1986, as amended. References to a particular Section will include
any successor section.

 

“Measurement Period” means the
period between any two successive regular or special Valuation Dates.

 

“Participant” has the meaning
given in Section 4.

 

“Participant Deferral Contribution”
means the portion of a Participant’s Base Compensation and/or Annual Bonus that
the Participant elects to defer pursuant to an Participant Deferral Election as
described in Section 5.1 of the Plan.

 

“Participant Deferral Contribution Account”
means the portion of a Participant’s Deferral Account attributable to
Participant Deferral Contributions made by the Participant.

 

“Participant Deferral Election”
means a written election by a Participant for a Deferral Period in a form
prescribed by or at the direction of the Committee, by which the Participant
(a) elects to defer either all or a portion of the Participant’s Base
Compensation and/or Annual Bonus for the Deferral Period pursuant to Section 5.1
of the Plan and (b) specifies a Form of Benefit Election for the portion of the
Participant’s Deferral Account attributable to Participant

 

21

 

Deferral Contributions and Employer Contributions, and
Earnings attributable to such contributions for such Deferral Period.

 

“Pay Period” means
the period of service for an Employer for which Base Compensation is earned and
paid under the payroll practices of the Employer.

 

“QPMC Account” means an Employer
Contribution Account as described in Section 7.1.2 to which Qualified Plan
Makeup Credit Employer Contributions are credited.

 

“QPSC Account” means an Employer
Contribution Account as described in Section 7.1.2 to which Qualified Plan
Supplemental Credit Employer Contributions are credited.

 

“Qualified Plan Compensation”
for a Participant for a Qualified Plan Year means the Participant’s “Compensation”
for such Qualified Plan Year as defined in the Qualified Plans.

 

“Qualified Plan Year”
means the calendar year.

 

“Qualified Plans” mean
Corporation’s Retirement Account Plan and the profit sharing component of
Corporation’s Salaried 401(k) and Profit Sharing Plan.

 

“Reporting Person” means a
Participant who is subject to the requirements of Section 16(a) of the
Exchange Act.

 

“Retirement Age” means age 65,
or such other age as is designated by the Committee.

 

“Specified Employee” means a key
employee of an Employer within the meaning of IRC § 416(i).

 

“Subaccount” means a portion of
a Participant’s Deferral Account as described in Section 7.1.4.

 

“Total Compensation” for a
Participant for any Qualified Plan Year means the Participant’s Qualified Plan
Compensation for such year, increased by the amount of the Participant’s Annual
Deferral Contributions that, but for the Participant’s Participant Deferral
Election, would have been paid to the Participant and included in the
Participant’s Qualified Plan Compensation for such Qualified Plan Year.

 

“Valuation Date” means a date as
of which Deferral Accounts and Subaccounts are determined pursuant to Section 7.4.
The last date of each calendar month will be a regular Valuation Date. For
purposes of Section 7.4, the date of any distribution to a Participant or
Beneficiary will be a special Valuation Date (and will mark the end of a
Measurement Period as of such special Valuation Date). In addition, the
Committee may utilize additional special Valuation Dates (up to a daily
valuation basis) to the extent the Committee determines such special Valuation
Dates are necessary or useful.

 

“Vested” means to become no
longer subject to forfeiture pursuant to Section 9.2.

 

“Years of Service” has the
meaning provided for such term for vesting purposes under the Qualified Plans.

 

22

 

This Plan was adopted as of the Effective Date.

 

	
   

  	
  LOUISIANA-PACIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
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23Exhibit 10.4

 

 

LOUISIANA-PACIFIC
CORPORATION

 

SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

 

 

Amended and Restated as of September 1, 2004

 

 

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”) and certain of its subsidiary companies. 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, January 1, 2002 and May I, 2002, and is further amended and restated
as of September 1, 2004 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

 

An “Acquiring Person” or
a “Person” means any individual, entity or group within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”).

 

2.2                                 Accumulated with Interest

 

“Accumulated with
Interest” means to project Qualified and Other Plan Accounts amounts from one
date to a subsequent date assuming an interest rate of seven percent (7%) compounded
annually.

 

2.3                                 Actuarial Equivalent

 

“Actuarial Equivalent”
means equality in value of the aggregate amounts expected to be received under
different forms and timing of payment, which shall be determined by using 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) and the UP84 Mortality Table set back four (4) years for
males and females.

 

2.4                                 Beneficiary

 

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

 

2.5                                 Board

 

“Board” means the Board
of Directors of the Corporation.

 

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2.6                                 Change in Control

 

“Change in Control”
means:

 

(a)    The acquisition by an
Acquiring Person of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (i) the then
outstanding shares of common stock of Corporation (the “Outstanding Corporation
Common Stock”) or (ii) the combined voting power of the then outstanding voting
securities of Corporation entitled to vote generally in the election of
directors (the “Outstanding Corporation Voting Securities”); provided, however,
that for purposes of this subsection (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 pursuant
to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c)
of this definition; or

 

(b)   Individuals who, as September 1,
2004, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to September 1, 2004, whose
election, or nomination for election by Corporation’s shareholders, was
approved by a vote of at least a majority of the directors then comprising 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 by Corporation of
a reorganization, merger or consolidation or sale or other disposition of all
or substantially all of the assets of Corporation or the acquisition of assets
of another entity (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, respectively, of the Outstanding
Corporation Common Stock and Outstanding Corporation Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 60% 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 or more subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Business Combination, of the
Outstanding Corporation Common Stock and Outstanding Corporation Voting
Securities, as the case may be, (ii) no Person (excluding any employee benefit
plan (or related trust) of Corporation

 

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or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 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 a complete liquidation or dissolution of Corporation.

 

2.7                                 Committee

 

“Committee” means the
Committee appointed by the Corporation to administer the Plan pursuant to Article VII.

 

2.8                                 Compensation

 

“Compensation” means
base pay and annual cash incentive bonuses 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, stock option income, group life insurance
premiums, severance pay, or any other payments or benefits other than base pay
and annual cash incentive bonuses.

 

2.9                                 Corporation

 

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

 

2.10                           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.

 

2.11                           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.

 

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2.12                           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.

 

2.13                           Employer

 

“Employer” means the
Corporation and any affiliated or subsidiary company of the Corporation which
is organized under the laws of any state of the United States.

 

2.14                           Final Average Compensation

 

“Final Average
Compensation” means the Participant’s Compensation during the sixty (60)
consecutive complete calendar months of paid employment 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 complete calendar 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 complete calendar months of paid
employment.

 

2.15                           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 cash incentive bonus
paid the last three (3) years, divided by twelve (12). If the Participant has
not been a Participant in the Employer’s annual 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.

 

2.16                           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.

 

2.17                           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.

 

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2.19                           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 benefits attributable to employer
contributions under the Louisiana-Pacific Corporation Retirement Account Plan
and any other employee pension benefit plan maintained by the Employer, (3)
Qualified Plan Supplemental Credit Account under the Louisiana-Pacific
Corporation 2004 Executive Deferred Compensation Plan (the “EDCP”) (4)
Qualified Plan Makeup Credit Account under the EDCP and (5) Employer Matching
Contribution Account under the EDCP.

 

2.20                           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.

 

2.21                           Spouse

 

“Spouse” means a
Participant’s wife or husband who is lawfully married to the Participant at the
time of the Participant’s death.

 

2.22                           Supplemental Retirement Benefit

 

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

 

2.23                           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 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.

 

2.24                           Years of Credited Service

 

“Years of Credited
Service” means the whole number of years of vesting service credited under the
provisions of the Louisiana-Pacific Corporation Retirement Account Plan.

 

2.25                           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.

 

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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 Participant’s monthly accrued Supplemental Retirement
Benefit payable monthly for the life of the Spouse, calculated using the three
percent (3%) reduction per year specified in 5.3 to the Participant’s age at
death if the Participant died before attaining age 62, 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.

 

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ARTICLE V—SUPPLEMENTAL
RETIREMENT BENEFITS

5.1                                 Normal Retirement Benefit

 

If a Participant retires
on the Normal Retirement Date, the Employer shall pay to the Participant a
monthly Supplemental Retirement Benefit for the Participant’s life 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 amounts,
determined as of the Participant’s date of termination and subject to Section 5.9,
converted to a monthly life annuity on an Actuarial Equivalent basis

 

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 for the Participant’s life 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) assuming no future increases in Compensation, no
change in the Social Security Act and no change in the cost of living or the
average wage indexes, and

 

(b)   An
amount equal to the Participant’s Qualified and Other Plan Accounts amounts,
determined as of the Participant’s date of termination and subject to Section 5.9,
converted to a monthly life annuity beginning at age sixty-two (62) on an
Actuarial Equivalent basis but assuming no growth in such amounts to age
sixty-two (62);

 

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

 

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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 for the Participant’s
life 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 projected to
be paid at age sixty-two (62) assuming no future increases in Compensation, no
change in the Social Security act and no change in the cost of living or the
average wage indexes, and

 

(ii)                An
amount equal to the Qualified and Other Plan Accounts amounts, determined as of
the date of the Participant’s date of termination and subject to Section 5.9,
converted to a monthly life annuity beginning at age sixty-two (62) on an
Actuarial Equivalent basis but assuming no growth in such amounts to age
sixty-two (62).

 

(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 Credited 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.

 

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

 

8

 

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
payable monthly. Any other form of monthly benefit elected by the Participant
shall be the Actuarial Equivalent to a life annuity payable monthly. 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).

 

(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

 

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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 as if the Participant terminated on
the date the distribution is requested. For those active Participants eligible
for Early Retirement, the lump-sum amount shall be calculated as if 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 at termination shall
be the amount distributed Accumulated with Interest to the date of termination.

 

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 retirement 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 retirement 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

 

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proof of incompetency,
minority, incapacity or guardianship as it 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 a Committee consisting of not less than three (3) persons
appointed by the Corporation. Members of the Committee may be Participants in
the Plan. The members of the Committee on September 1, 2004 are Curtis M.
Stevens, Russell S. Pattee and Andrea L. Vicino. 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

 

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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 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

 

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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.

 

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.

 

13

 

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.

 

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.

 

14

 

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

 

	
  Dated: September 1,
  2004

  	
  LOUISIANA-PACIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Executive Vice
  President, Administration,

  
	
   

  	
   

  	
  and Chief Executive
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  

 

15

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