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LOUISIANA-PACIFIC CORPORATION
  
  1997 INCENTIVE STOCK AWARD PLAN
  
  Effective March 1, 1997
  
  (As amended through February 25, 2002)    
  

   LOUISIANA-PACIFIC CORPORATION

1997 INCENTIVE STOCK AWARD PLAN  

ARTICLE 1.  ESTABLISHMENT AND PURPOSE  

        1.1    Establishment.    LOUISIANA-PACIFIC CORPORATION ("Corporation"), hereby establishes the Louisiana-Pacific
Corporation 1997 Incentive Stock Award Plan (the "Plan"), effective as of March 1, 1997, subject to stockholder approval as provided in Article 15. 

        1.2    Purpose.    The purpose of the Plan is to promote the long-term interests of Corporation and its
stockholders by enabling Corporation to attract, retain, and reward key employees of Corporation and its subsidiaries and to strengthen the mutuality of interests between such employees and
Corporation's stockholders. The Plan is designed to serve this purpose by offering stock options and other equity-based incentive awards and encourage key employees to acquire an ownership in
Corporation. 

ARTICLE 2.  DEFINITIONS  

        2.1    Defined Terms.    The following definitions are applicable to the Plan: 

        "Award" means an award or grant made to a Participant pursuant to the Plan. 

        "Award Agreement" means an agreement as described in Section 6.2 of the Plan. 

        "Board" means the Board of Directors of Corporation. 

        "Code" means the Internal Revenue Code of 1986, as amended and in effect from time to time, or any successor thereto, together with rules,
regulations, and interpretations promulgated thereunder. Where the context so requires, any reference to a particular Code section will be construed to refer to the successor provision to such Code
section. 

        "Committee" means the Compensation Committee of the Board. 

        "Common Stock" means the common stock, $1 par value, of Corporation or any security of Corporation issued in substitution, exchange, or
lieu thereof. 

        "Corporation" means Louisiana-Pacific Corporation, a Delaware corporation, or any successor corporation thereto. 

        "Exchange Act" means the Securities Exchange Act of 1934. 

        "Fair Market Value" means on any given date, the closing price per share of Common Stock as reported for such day by the principal
exchange or trading market on which Common Stock is traded (as determined by the Committee) or, if Common Stock was not traded on such date, on the next preceding day on which Common Stock was traded.
If the Common Stock is not listed on a stock exchange or if trading activities for Common Stock are not reported, the Fair Market Value will be determined by the Committee. 

        "Participant" means an employee of Corporation or a Subsidiary who is granted an Award under the Plan. 

        "Plan" means this Louisiana-Pacific Corporation 1997 Incentive Stock Award Plan, as set forth herein and as it may be hereafter amended
from time to time. 

        "Share" means a share of Common Stock. 

        "Subsidiary" means any corporation in which Corporation directly or indirectly controls 50 percent or more of the total combined
voting power of all classes of stock having voting power. 

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        "Vest" or "Vested" means: 

        (a)  In
the case of an Award that requires exercise, to be or to become immediately and fully exercisable and free of all restrictions; 

        (b)  In
the case of an Award that is subject to forfeiture, to be or to become nonforfeitable, freely transferable, and free of all restrictions; 

        (c)  In
the case of an Award that is required to be earned by attaining specified performance goals, to be or to become earned and nonforfeitable, freely transferable, and
free of all restrictions; or 

        (d)  In
the case of any other Award as to which payment is not dependent solely upon the exercise of a right, election, exercise, or option, to be or to become immediately
payable and free of all restrictions. 

ARTICLE 3.  ADMINISTRATION  

        3.1    General.    The Plan will be administered by the Committee. The Committee will have full power and authority to
administer the Plan in its sole discretion. A majority of the members of the Committee will constitute a quorum and action approved by a majority will be the act of the Committee. 

        3.2    Authority of the Committee.    Subject to the terms of the Plan, the Committee: 

        (a)  Will
select the Participants, determine the types of Awards to be granted to Participants, determine the shares or share units subject to Awards, and determine the terms
and conditions of individual Award Agreements; 

        (b)  Has
the authority to interpret the Plan, to establish, amend, and revoke any rules and regulations relating to the Plan, to make all other determinations necessary or
advisable for the administration of the Plan; and 

        (c)  May
correct any deficit, supply any omission, or reconcile any inconsistency in the Plan or in any Award Agreement in the manner and to the extent the Committee deems
desirable to carry out the purposes of the Plan. 

Decisions
of the Committee, or any delegate as permitted by the Plan, will be final, conclusive, and binding on all Participants. 

        3.3    Liability of Committee Members.    No member of the Committee will be liable for any action or determination
made in good faith with respect to the Plan, any Award, or any Participant. 

ARTICLE 4.  DURATION OF THE PLAN AND SHARES SUBJECT TO THE PLAN  

        4.1    Duration of the Plan.    The Plan is effective March 1, 1997, subject to approval by Corporation's
stockholders as provided in Article 15. The Plan will remain in effect until Awards have been granted covering all the available Shares and all outstanding Awards have been exercised, settled,
or terminated in accordance with the terms of the applicable Award Agreement, or the Plan is otherwise terminated by the Board. Termination of the Plan will not affect outstanding Awards. 

        4.2    Other Stock Plans.    The Plan is separate from the following existing plans (the "Prior Plans"): 

Louisiana-Pacific
Corporation 1991 Employee Stock Option Plan;

Louisiana-Pacific Corporation 1984 Employee Stock Option Plan; and

Louisiana-Pacific Corporation Key Employee Restricted Stock Plan. 

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The
Plan will neither affect the operation of the Prior Plans nor be affected by the Prior Plans, except that no further stock options or restricted stock awards will be granted under any of the Prior
Plans after the date the Plan is approved by Corporation's stockholders as described in Article 15. 

        4.3    General Limitation on Awards.    Subject to adjustment pursuant to Article 12 of the Plan, the maximum
number of Shares for which Awards may be granted under the Plan may not exceed 10,000,000 Shares. 

        4.4    Cancellation or Expiration of Awards.    If an Award under the Plan is canceled or expires for any reason prior
to having been fully vested or exercised by a Participant or is settled in cash in lieu of Shares or is exchanged for other Awards, all Shares covered by such Awards will again become available for
additional Awards under the Plan. 

ARTICLE 5.  ELIGIBILITY  

        Officers and other key employees of Corporation and its Subsidiaries (including employees who may also be directors of Corporation or a Subsidiary) who, in the
Committee's judgment, are or will be contributors to the long-term success of Corporation will be eligible to receive Awards under the Plan. 

ARTICLE 6.  AWARDS  

        6.1    Types of Awards.    Awards under the Plan may consist of: stock options (either incentive stock options, within
the meaning of Section 422 of the Code, or nonstatutory stock options), stock appreciation rights, performance shares, restricted stock grants, and other stock-based awards (as described in
Article 11 of the Plan). Awards of performance shares and restricted stock may provide the Participant with dividends or dividend equivalents and voting rights prior to vesting. 

        6.2    Award Agreements.    Each Award will be evidenced by a written Award Agreement between Corporation and the
Participant. Award Agreements may, subject to the provisions of the Plan, contain any provision approved by the Committee. Any Award Agreement may make provision for any matter that is within the
discretion of the Committee or may retain the Committee's discretion to approve or authorize any action with respect to the Award during the term of the Award Agreement. 

        6.3    Nonuniform Determinations.    The Committee's determinations under the Plan or under one or more Award
Agreements, including without limitation, (a) the selection of Participants to receive Awards, (b) the type, form, amount, and timing of Awards, (c) the terms of specific Award
Agreements, and (d) elections and determinations made by the Committee with respect to exercise or payments of Awards, need not be uniform and may be made by the Committee selectively among
Participants and Awards, whether or not Participants are similarly situated. 

        6.4    Provisions Governing All Awards.    All Awards will be subject to the following provisions: 

        (a)  Transferability. Except as otherwise provided in this Section 6.4(a), each Award (but not Shares issued following
Vesting or exercise of an Award) will not be transferable other than by will or the laws of descent and distribution and Awards requiring exercise will be exercisable during the lifetime of the
Participant only by the Participant or, in the event the Participant becomes legally incompetent, by the Participant's guardian or legal representative. Notwithstanding the foregoing, the Committee,
in its discretion, may include in any Award Agreement a provision that the Award is transferable, without payment of consideration, to immediate family members of the Participant or to a trust for the
benefit of or a partnership composed solely of such family members. 

        (b)  Employment Rights. Neither the adoption of the Plan nor the granting of any Award will confer on any person the right to
continued employment with Corporation or any Subsidiary, nor will it interfere in any way with the right of Corporation or a Subsidiary to terminate such person's employment at any time for any
reason, with or without cause. 

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        (c)  Effect of Change in Control. The Committee may, in its discretion, include in any Award Agreement a provision that upon
the effective date of a change in control of Corporation (as that term may be defined in the Award Agreement), all or a specified portion of the Award (i) will become fully Vested,
(ii) will terminate, or (iii) may be converted into shares of an acquiror. In any such change in control provision, the Committee may provide whether or to what extent such acceleration
in the Vesting of an Award will be conditioned to avoid resulting in an "excess parachute payment" within the meaning of Section 280G(b) of the Code. 

ARTICLE 7.  STOCK OPTIONS  

        The option price for each stock option may not be less than 100 percent of the Fair Market Value of the Common Stock on the date of grant. Stock options
will be exercisable for such period as specified by the Committee in the applicable Award Agreement, but in no event may options be exercisable for a period of more than ten years after their date of
grant. The option price of each Share as to which a
stock option is exercised must be paid in full at the time of exercise. The Committee may, in its discretion, provide in any Award Agreement for a stock option that payment of the option price may be
made in cash, by tender of Shares owned by the Participant valued at Fair Market Value as of the date of exercise, subject to such guidelines for the tender of Shares as the Committee may establish,
in such other consideration as the Committee deems appropriate, or a combination of cash, shares of Common Stock, and such other consideration. The number of Shares subject to options and stock
appreciation rights granted under the Plan to any individual Participant during any one calendar year may not exceed 600,000 Shares. Except for adjustments in price pursuant to Article 12
hereof, at no time shall the option price of a stock option granted hereunder be subsequently repriced during the period of its exercisability. 

        In
the case of an Option designated as an incentive stock option, the terms of the option and the Award Agreement must conform with the statutory and regulatory requirements specified
pursuant to Section 422 of the Code, as in effect on the date such incentive stock option is granted. 

        The
Committee may, in its discretion, include in an Award Agreement for any option a provision that in the event previously acquired Shares are surrendered by a Participant in payment of
all or a portion of either (a) the option exercise price or (b) the Participant's federal, state, or local tax withholding obligation with respect to such exercise, the Participant will
automatically be granted a replacement or reload option (with an option price equal to the Fair Market Value of a Share on the date of such exercise) for a number of Shares equal to all or a portion
of the number of Shares surrendered. Such replacement option will be subject to such terms and conditions as the Committee determines. 

ARTICLE 8.  STOCK APPRECIATION RIGHTS  

        Stock appreciation rights may be granted in tandem with a stock option, in addition to a stock option, or may be freestanding and unrelated to a stock option.
Stock appreciation rights granted in tandem or in addition to a stock option may be granted either at the same time as the stock option or at a later time. No stock appreciation right may be
exercisable earlier than six months after grant, except in the event of the Participant's death or disability. A stock appreciation right will entitle the Participant to receive from Corporation an
amount equal to the increase in the Fair Market Value of a Share on the exercise of the stock appreciation right over the grant price. The Committee may determine in its discretion whether the stock
appreciation right may be settled in cash, shares, or a combination of cash and shares. 

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ARTICLE 9.  PERFORMANCE SHARES  

        9.1    General.    Performance shares may be granted in the form of actual Shares or Share units having a value equal
to Shares. An Award of performance shares will be granted to a Participant subject to such terms and conditions set forth in the Award Agreement as the Committee deems appropriate, including, without
limitation, the condition that the performance shares or a portion thereof will Vest only in the event specified performance goals are met within a specified performance period, as set forth in the
Award Agreement. An Award Agreement for a performance share Award may also, in addition to specifying performance goals, condition Vesting of such Award on continued employment for a period specified
in the Award Agreement. In the event that a stock certificate is issued in respect of performance shares, the certificate will be registered in the name of the Participant but will be held by
Corporation until the time the performance shares become Vested. The performance conditions and the length of the performance period will be determined by the Committee. The Committee may, in its
discretion, reduce or eliminate the Vesting of performance shares if, in the Committee's judgment, it determines that the Vesting of the performance share Award is not appropriate given actual
performance over the applicable performance period. The maximum number of Shares issuable to any individual Participant with respect to performance share Awards during any one calendar year may not
exceed 100,000 Shares. The Committee, in its sole discretion, may provide in an Award Agreement whether performance shares granted in the form of share units will be paid in cash, shares, or a
combination of cash and shares. 

        9.2    Performance Goals for Executive Officers.    The performance goals for performance share awards granted to
executive officers of Corporation may relate to corporate performance, business unit performance, or a combination of both. 

        Corporate
performance goals will be based on financial performance goals related to the performance of Corporation as a whole and may include one or more measures related to earnings,
profitability, efficiency, or return to stockholders such as earnings per share, operating profit, stock price, costs of production, or other measures. 

        Business
unit performance goals will be based on a combination of financial goals and strategic goals related to the performance of an identified business unit for which a Participant
has responsibility. Strategic goals for a business unit may include one or a combination of objective factors relating to success in implementing strategic plans or initiatives, introductory products,
constructing facilities, or other identifiable objectives. Financial goals for a business unit may include the degree to which the business unit achieves one or more objective measures related to its
revenues, earnings, profitability, efficiency, operating profit, costs of production, or other measures. 

        Any
corporate or business unit goals may be expressed as absolute amounts or as ratios or percentages. Success may be measured against various standards, including budget targets,
improvement over prior periods, and performance relative to other companies, business units, or industry groups. 

ARTICLE 10.  RESTRICTED STOCK  

        Restricted stock may be granted in the form of actual Shares, Share units having a value equal to Shares, or other rights to receive Shares in the future. A
restricted stock Award will be subject to such terms and conditions set forth in the Award Agreement as the Committee deems appropriate, including, without limitation, restrictions on the sale,
assignment, transfer, or other disposition of such restricted stock and provisions that such restricted stock, stock units or other rights to receive Shares be forfeited upon termination of the
Participant's employment for specified reasons within a specified period of time or upon other conditions, as set forth in the Award Agreement. The Award Agreement for a restricted stock Award may
also, in addition to conditioning Vesting of the Award on continued employment, further condition Vesting on attainment of performance goals. In the event that a stock certificate is issued in respect
of restricted stock, such certificate will be registered in the name of the 

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Participant but will be held by the Corporation until the end of the restricted period. The employment conditions and the length of the period for vesting of restricted stock Awards will be
established by the Committee at the time of grant and set forth in the Award Agreement. The Committee, in its sole discretion, may provide in an Award Agreement whether restricted stock granted in the
form of Share units will be paid in cash, Shares, or a combination of cash and Shares. The aggregate number of shares or share units that may be subject to restricted stock Awards may not exceed
2,000,000 Shares. 

ARTICLE 11.  OTHER STOCK-BASED AND COMBINATION AWARDS  

        The Committee may grant other Awards under the Plan pursuant to which Shares are or may in the future be acquired, or Awards denominated in or measured by Share
equivalent units, including Awards valued using measures other than the market value of Shares. For such other stock-based awards that are granted to executive officers of Corporation and that
condition Vesting of such Awards, in whole or in part, on attaining performance goals, such Awards will be subject to the same limitations on types of performance goals and the same limitation on the
maximum number of Shares issuable to any individual Participant as provided in Article 9 of the Plan. The Committee may also grant Awards under the Plan in tandem or combination with other
Awards or in exchange for Awards, or in tandem or combination with, or as alternatives to, grants or rights under any other employee plan of Corporation. 

ARTICLE 12.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION  

        In the event of any change in capitalization affecting the Common Stock of Corporation, such as a stock dividend, stock split, recapitalization, merger,
consolidation, split-up, spinoff, combination or exchange of shares, or other form of reorganization, or corporate change, or any distribution with respect to Common Stock other than
regular cash dividends, the Committee may make such substitution or adjustment, if any, that it deems to be equitable as to the number and kind of Shares or other securities issued or reserved for
issuance pursuant to the Plan, to the limits on Awards to Participants, and to outstanding Awards. 

ARTICLE 13.  AMENDMENT AND TERMINATION  

        The Board may amend, suspend, or terminate the Plan or any portion of the Plan at any time, provided no amendment may be made without stockholder approval if such
approval is required by applicable law or the requirements of an applicable stock exchange. 

ARTICLE 14. MISCELLANEOUS  

        14.1    Tax Withholding.    Corporation will have the right to deduct from any settlement of any Award under the Plan,
including the delivery or vesting of Shares, any federal, state, or local taxes of any kind required by law to be withheld with respect to such payments or to take such other action as may be
necessary in the opinion of Corporation to satisfy all obligations for the payment of such taxes. The recipient of any payment or distribution under the Plan must make arrangements satisfactory to
Corporation for the satisfaction of any such withholding tax obligations. Corporation will not be required to make any such payment or distribution under the Plan until such obligations are satisfied.
The Committee, in its discretion, may permit a Participant to satisfy the Participant's federal, state, or local tax, or tax withholding obligations with respect to an Award by having Corporation
retain the number of Shares having a Fair Market Value equal to the amount of taxes or withholding taxes. 

        14.2    Securities Law Restrictions.    No Shares will be issued under the Plan unless counsel for Corporation is
satisfied that such issuance will be in compliance with applicable federal and state securities laws. Certificates for Shares delivered under the Plan may be subject to such stop-transfer
orders and other restrictions as the Committee may deem advisable under the rules, regulations, and 

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other requirements of the Securities and Exchange Commission, any stock exchange upon which the Common Stock is then listed, and any applicable federal or state securities law. The Committee may
cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

        14.3    Governing Law.    Except with respect to references to the Code or federal securities laws, the Plan and all
actions taken thereunder will be governed by and construed in accordance with the laws of the state of Oregon. 

ARTICLE 15.  STOCKHOLDER APPROVAL  

        The adoption of the Plan and the grant of Awards under the Plan are expressly subject to the approval of the Plan by the affirmative vote of at least a majority
of the stockholders of Corporation present, or represented by proxy, and entitled to vote at Corporation's 1997 annual meeting of stockholders. 

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LOUISIANA-PACIFIC CORPORATION 1997 INCENTIVE STOCK AWARD PLAN Effective March 1, 1997 (As amended through February 25, 2002)QuickLinks
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AWARD AGREEMENT
  under the
  Louisiana-Pacific Corporation
  1997 Incentive Stock Award Plan
  
  NONQUALIFIED STOCK OPTION    
  

	Corporation:	 	Louisiana-Pacific Corporation

805 SW Broadway

Suite 700

Portland, Oregon 97205-3303
	 	 	 
	Participant:	 	 
	 	 	

	 	 	

	 	 	

	 	 	 
	Grant Date:	 	January 25, 2002
	 	 	 
	Option:	 	A Nonqualified Stock Option
	 	 	 
	Option Shares:	 	            Shares
	 	 	 
	Exercise Price:	 	$                  per Share

        Subject
to the terms and conditions of the Louisiana-Pacific Corporation 1997 Incentive Stock Award Plan, as amended, (the "Plan") and this Agreement, effective as of the Grant Date,
Corporation grants to Participant the Option to purchase the Option Shares at the Exercise Price. 

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

	 	 	 	 	 
	 	 	LOUISIANA-PACIFIC CORPORATION
	 	 	 	 	 
	 	 	 	 	 
	 	 	By	 	 
	 	 	 	 	

	 	 	Its	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	
 Participant

  

 
 

APPENDIX A
  To
  Award Agreement for Nonqualified Stock Option    
  

        This Award Agreement evidences the grant of a Non-qualified Stock Option (the "Option") to Participant under the Plan. 

        Capitalized
terms are defined in Section 8. 

1.    Option Shares; Adjustment  

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

2.    Terms of the Option  

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

        2.1    Nonqualified Stock Option.    The Option is not intended to qualify as an incentive stock option meeting the
requirements of IRC § 422. 

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

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

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

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

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

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

        2.4    Effect of Termination of Employment.    The Option may not be exercised (in whole or in part) unless
Participant is continuously employed by an Employer from the Grant Date through at least the first anniversary of the Grant Date. If Participant ceases to be an Employee for any reason on or after the
first anniversary of the Grant Date, the term of the Option will continue for the applicable Continuation Period. The Option will remain exercisable during the Continuation Period, if at all, only to
the extent the Option had become exercisable pursuant to Sections 2.3 and 2.10 of this Agreement on or prior to the Termination Date. The Option, to the extent not previously exercised, will be
canceled automatically at the end of the applicable Continuation Period. 

        2.5    Method of Exercise.    The Option, or any portion thereof, may be exercised, to the extent it has become
exercisable pursuant to this Agreement, by delivery of written notice to Corporation stating the number of Shares, form of payment, and proposed date of closing. 

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

        2.7    Payment.    The Exercise Price for the Shares purchased upon exercise of the Option must be paid in full in
United States dollars at or before closing by one or a combination of the following: 

        2.7.1    Payment
in cash or certified check or bank draft payable to the order of Corporation; 

        2.7.2    Delivery
of previously acquired Shares having a Fair Market Value equal to the Exercise Price; or 

        2.7.3    By
delivery (in a form approved by the Committee) of an irrevocable direction to a securities broker acceptable to the Committee: 

        (a)  To
sell Shares subject to the Option and to deliver all or a part of the sales proceeds to Corporation in payment of all or a part of the Exercise Price and withholding
taxes due; or 

        (b)  To
pledge Shares subject to the Option to the broker as security for a loan and to deliver all or a part of the loan proceeds to Corporation in payment of all or a part
of the Exercise Price and withholding taxes due. 

        2.8    Previously Acquired Shares.    Delivery of previously acquired Shares in full or partial payment for the
exercise of the Option is subject to the following conditions: 

        2.8.1    The
Shares tendered must be in good delivery form; 

        2.8.2    Any
Shares remaining after satisfying the payment for the Option will be reissued in the same manner as the Shares tendered; 

        2.8.3    No
fractional Shares will be issued and whenever payment of the full Exercise Price with Shares would require delivery of a fractional Share, Participant
must deliver the next lower whole number of Shares and make a cash payment to Corporation for the balance of the Exercise Price; and 

        2.8.4    Shares
may be tendered in full or partial payment of the Exercise Price only in connection with the exercise of the Option with respect to at least 2,000
Shares. 

        2.9    Transferability.    

        2.9.1    General.    Except as provided in Section 2.9.2, the Option is not transferable other than by will or
the laws of descent and distribution and may be exercised during the lifetime of Participant only by Participant or, in the case Participant becomes legally incompetent, by Participant's guardian or
legal representative. No assignment or transfer of the Option in violation of the foregoing restriction, whether voluntary, involuntary or by operation of law or otherwise, except by will or the laws
of descent and distribution, will vest in the assignee or transferee any interest or right whatsoever, but immediately upon any attempt to assign or transfer the Option, the Option will terminate and
be of no force or effect. Whenever the word "Participant" is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the executor,
administrator, or the person or persons to whom this Option may be transferred by will or by the laws of descent and distribution, it will be deemed to include such person or persons. 

        2.9.2    Permitted Family Transfers.    The Option may be transferred by Participant, without payment of
consideration, to Participant's immediate family members or lineal descendants ("Permitted Family Members"), to trusts for the benefit of Permitted Family Members, or to family partnerships or limited
liability companies of which Participant and Permitted Family members are the only partners or members. For purposes of this Section, a transfer of the Option to a family 

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partnership or limited liability company in exchange for a partnership or limited liability company interest will be deemed to be a transfer without payment of consideration. 

        2.10    Effect of Change in Control.    

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

        2.10.2    Dissolution.    The Option will terminate upon the effective date of a dissolution or liquidation of
Corporation. 

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

3.    Tax Reimbursement  

        It is a condition of Corporation's obligation to issue Shares in connection with an exercise of the Option that Participant pay to Corporation, or make provision
satisfactory to Corporation for the payment of, an amount sufficient to provide for any withholding or similar tax liability imposed on Corporation in connection with or with respect to any exercise
of the Option. 

4.    Conditions Precedent  

        The Option granted pursuant to this Agreement is expressly subject to the approval of the Plan, as amended, by Corporation's stockholders at Corporation's 2002
annual meeting of stockholders. 

        Corporation
will use its best efforts to obtain approval of the Plan and this Option by any state or federal agency or authority that Corporation determines has jurisdiction. If
Corporation determines that any required approval cannot be obtained, this Option will terminate on notice to Participant to that effect. Without limiting the foregoing, Corporation will not be
required to issue any Shares upon exercise of all or any portion of the Option until Corporation has taken all action required to comply with all applicable federal and state securities laws. 

5.    Successorship  

        Subject to restrictions on transferability set forth in Section 2.9, this Agreement will be binding upon and benefit the parties, their successors and
assigns. 

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6.    Notices  

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

7.    Arbitration  

        Any dispute or claim that arises out of or that relates to this Agreement or to the interpretation, breach, or enforcement of this Agreement, must be resolved by
mandatory arbitration in accordance with the then effective arbitration rules of Arbitration Service of Portland, Inc., and any judgment upon the award rendered pursuant to such arbitration may
be entered in any court having jurisdiction thereof. 

8.    Defined Terms  

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

	•
	Acquiring Person means any person or related person or related persons which constitute a "group" for
purposes of Section 13(d) and Rule13d-5 under the Securities Exchange Act of 1934 (the "Exchange Act"), as such Section and Rule are in effect as of the Grant Date; provided,
however, that the term Acquiring Person shall not include (a) Corporation or any of its Subsidiaries, (b) any employee benefit plan or related trust of Corporation or any of its
Subsidiaries, (c) any entity holding voting capital stock of Corporation for or pursuant to the terms of any such employee benefit plan, or (d) any person or group solely because such
person or group has voting power with respect to capital stock of Corporation arising from a revocable proxy or consent given in response to a public proxy or consent solicitation made pursuant to the
Exchange Act.

	•
	Approved Retirement means termination of employment with an Employer after Participant attains age 60, but
only if such retirement is approved by Corporation's Chief Executive Officer, in his sole discretion.

	•
	Change in Control of Corporation means: 

        (a)  The
acquisition by any Acquiring Person of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of 20 percent or more
of the combined voting power of the then outstanding Voting Securities; provided, however, that for purposes of this paragraph (a) the following acquisitions will not constitute a Change in
Control: (i) any acquisition directly from Corporation, (ii) any acquisition by Corporation, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by Corporation or any corporation controlled by Corporation, or (iv) any acquisition by any corporation pursuant to a transaction that complies with clauses (i), (ii), and
(iii) of paragraph (c) of this definition of Change in Control; or 

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

4

 

        (c)  Consummation
of a reorganization, merger, or consolidation or sale or other disposition of all or substantially all of the assets of Corporation (a "Business
Combination") in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners of the Voting Securities
outstanding immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50 percent of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such transaction owns Corporation or all or substantially all of Corporation's assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Voting Securities, (ii) no Person (excluding any employee benefit
plan, or related trust, of Corporation or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20 percent or more of, respectively, the then
outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the
extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business
Combination were members of Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 

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

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

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

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

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

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

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

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

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

	•
	Employer means Corporation or a Subsidiary of Corporation.

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

5

 

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

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

6

QuickLinks

AWARD AGREEMENT under the Louisiana-Pacific Corporation 1997 Incentive Stock Award Plan NONQUALIFIED STOCK OPTION

APPENDIX A To Award Agreement for Nonqualified Stock Option

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