Document:

Exhibit 10.14

 

CHANGE IN
CONTROL AGREEMENT

 

THIS
AGREEMENT (“Agreement”) made as of the 12th day of December, 2007, by and
among Leesport Financial Corp., a
Pennsylvania business corporation (“Leesport”), Leesport
Bank, a Pennsylvania banking institution (the “Bank”), and Terry Favilla, an adult individual (the “Employee”).

 

W I T N
E S S E T H:

 

WHEREAS,
the Employee will initially be serving as Senior Vice President and
Controller/Treasurer; and

 

WHEREAS,
Leesport and the Bank consider the continued services of the Employee to be in
the best interest of Leesport, the Bank, their affiliated companies and the
shareholders of Leesport; and

 

WHEREAS,
Leesport and the Bank desire to induce the Employee to remain in the employ of
the Employee’s then employer (whether it be Leesport or any company affiliated
with Leesport (the “Employer”)) on an impartial and objective basis in the
event of a proposed transaction pursuant to which a Change in Control (as
defined in Section 2(c)) will occur, if completed.

 

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

 

1.  Term of Agreement and Related Matters.

 

(a)  In General.  Except as otherwise provided herein, the term
of this Agreement will be for a period of three years commencing on the date of
December 12, 2007 and ending on December 12, 2010.

 

(b)  Termination for Cause.  Notwithstanding the provisions of Section 1(a),
this Agreement will terminate automatically upon Termination for Cause of the
Employee’s employment by the Employer.  As
used in this Agreement, the term “Termination for Cause” means:

 

(i)  prior to the public
announcement of a transaction involving an actual or potential Change in
Control, termination for any reason; and

 

(ii) concurrent
with or following the public announcement of a transaction involving an actual
or potential Change in Control, termination following:  (A) except if attributable to physical or
mental illness or injury, the willful failure of the Employee to materially
perform the Employee’s duties, but only after written demand specifically
identifying the basis for the Employee’s alleged non-performance and the
Employee’s continued failure to perform thereafter, and, if the termination is
before the actual occurrence of a Change in Control, only after a vote of at
least two-thirds of Leesport’s directors then in office; (B) a willful
material violation by the Employee of any applicable code of conduct or similar
policy applicable to 

 

1

 

Employees of the Employer; (C) the conviction of the Employee of,
or plea of nolo contendere to, a felony or a crime
of moral turpitude; or (D) the removal or prohibition of the Employee from
being an institution-affiliated party by a final order of an appropriate federal
banking agency pursuant to Section 8(e) of the Federal Deposit
Insurance Act or any other provision of applicable law.

 

If,
following a public announcement involving an actual or potential Change in
Control , a proposed transaction is terminated without completion, this
Agreement shall thereafter be construed as though no such announcement had ever
been made; provided, however, that the rights associated with any termination
of employment during the interim period shall be determined by reference to subsection (ii) above.

 

Notwithstanding
the preceding provisions of this subsection, prior to the public announcement
of a transaction involving an actual or potential Change in Control, a transfer
of the Employee to a new Employer which is Leesport, the Bank or an affiliate
of either shall not be deemed a Termination for Cause and this Agreement shall
continue in force.

 

If the
Employee’s employment is terminated for Cause, the Employee’s rights under this
Agreement shall cease as of the effective date of such termination.

 

(c)  Voluntary Termination,
Retirement, or Death.  Notwithstanding
the provisions of Section 1(a), this Agreement will terminate
automatically upon the voluntary termination of the Employee’s employment
(other than in accordance with Section 2), the Employee’s retirement on or
after age sixty-five (65) or the Employee’s death.  In any such event, the Employee’s rights
under this Agreement shall cease as of the effective date of such termination;
provided, however, that if the Employee dies after a Notice of Termination (as
defined in Section 2(b)) is delivered by the Employee in accordance with
such section, the payments described in Section 3 will nonetheless be made
to the person or persons determined pursuant to Section 9(b).

 

(d)  Disability.  Notwithstanding the provisions of Section 1(a),
this Agreement will terminate automatically upon the termination of the
Employee’s employment by reason of the Employee’s Disability.  In such event, the Employee’s rights under
this Agreement will cease as of the effective date of such termination;
provided, however, that if the Employee becomes disabled after a Notice of
Termination is delivered by the Employee in accordance with Section 2(b),
the Employee will nonetheless be entitled to receive the payments described in Section 3.  As used in this Agreement, the term “Disability”
means incapacitation, by accident, sickness or otherwise, such that the
Employee is rendered unable to perform the essential duties required of the
Employee by the Employee’s then position with the Employer, notwithstanding
reasonable accommodation, for a period of six (6) consecutive months.

 

2.  Termination Following a Change in
Control.

 

(a)  Events Giving Right To Terminate
For Good Reason.  If a public
announcement of a transaction involving an actual or potential Change in
Control occurs and, concurrently therewith or during a period of eighteen (18)
months thereafter, an event constituting Good Reason also occurs with respect
to the Employee, the Employee may terminate the Employee’s employment in
accordance with the provisions of Section 2(b) and, thereupon, will
become 

 

2

 

entitled to the payments described in Section 3.  As used in this Agreement, the term “Good
Reason” means any of the following events:

 

(i)    the involuntary termination of the Employee’s
employment, other than an involuntary termination permitted in Sections 1(b) and
(d);

 

(ii)   a material reduction in the Employee’s duties
or responsibilities as the same existed immediately prior to public
announcement of a transaction involving an actual or potential Change in
Control, or as the same may be increased thereafter;

 

(iii)  a reduction in the Employee’s base
compensation below a level that was in effect immediately prior to the public
announcement of an actual or potential Change in Control, or as may be
increased thereafter;

 

(iv)  the failure to provide the Employee with a
total compensation package (salary, welfare and pension benefits, stock options
and a bonus plan evaluated on the basis of bonus potential) reasonably
comparable to the compensation package provided to the Employee immediately
prior to the public announcement of an actual or potential Change in Control,
or as may be increased thereafter;

 

(v)   the reassignment of the Employee to a
principal office which is more than thirty-five (35) miles from the Employee’s
primary residence as of the date of the public announcement of an actual or
potential Change in Control; or

 

(vi)  any material breach of this Agreement by the
Employee’s Employer at the relevant time, coupled with the failure to cure the
same within thirty (30) days after receipt of written notice of such breach
from the Employee.

 

(b)  Notice of Termination.  Upon the occurrence of an event of Good
Reason subject to Section 2(a), the Employee may, within ninety (90) days
of the occurrence of any such event, resign from employment by a notice in
writing (“Notice of Termination”) delivered to Leesport, whereupon the Employee
will become entitled to the payments and benefits described in Section 3.  In the case of a termination described in Section 2(a)(i),
the Employee shall confirm the Employee’s involuntary termination, in writing,
within ninety (90) days of the date of such termination, and such confirmation
will be deemed a Notice of Termination.

 

(c)  Change in Control Defined.  As used in this Agreement, the term “Change in
Control” means any of the following:

 

(i)  any “person” (as such
term is used for purposes of Section 13(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”) as in effect on the date hereof), other than
Leesport, a subsidiary of Leesport, or an employee benefit plan of Leesport or
a subsidiary of Leesport (including a related trust), becomes the beneficial
owner (as determined pursuant to Rule 13d-3 under the Exchange Act),
directly or indirectly of securities of Leesport representing more than 24.9%
of (A) the combined voting power of Leesport’s then outstanding stock and
securities or (B) the aggregate number of shares of Leesport’s then
outstanding common stock;

 

3

 

(ii)   the occurrence of a sale of all or
substantially all of the assets of Leesport or the Bank to an entity which is
not a direct or indirect subsidiary of Leesport;

 

(iii)  the occurrence of a reorganization, merger,
consolidation or similar transaction involving Leesport, unless (A) the
shareholders of Leesport immediately prior to the consummation of any such
transaction initially thereafter own securities representing at least a
majority of the voting power of the surviving or resulting corporation and (B) the
directors of Leesport immediately prior to the consummation of such transaction
initially thereafter represent at least a majority of the directors of the
surviving or resulting corporation;

 

(iv)  a plan of liquidation or dissolution, other
than pursuant to bankruptcy or insolvency, is adopted for Leesport or the Bank;

 

(v)   during any period of two consecutive years,
individuals who, at the beginning of such period, constituted the Board of
Directors of Leesport cease to constitute the majority of such Board (unless
the election of each new director was expressly or by implication approved by a
majority of the Board members who were still in office and who were directors
at the beginning of such period); and

 

(vi)  the occurrence of any other event which is
irrevocably designated as a “change in control” for purposes of this Agreement
by resolution adopted by a majority of the then non-employee directors of
Leesport.

 

Notwithstanding
the foregoing, a Change in Control will not be deemed to have occurred if a
person becomes the beneficial owner, directly or indirectly, of stock and
securities representing more than 24.9% of the combined voting power of
Leesport’s then outstanding stock and securities or the aggregate number of
shares of Leesport’s then outstanding common stock solely as a result of an
acquisition by Leesport of its stock or securities which, by reducing the
number of securities or stock outstanding, increases the proportionate number
of securities or stock beneficially owned by such person; provided, however,
that if a person becomes the beneficial owner of more than 24.9% of the
combined voting power of stock and securities or the aggregate number of shares
of common stock by reason of such acquisition and thereafter becomes the
beneficial owner, directly or indirectly, of any additional voting stock or
securities or common stock (other than by reason of a stock split, stock dividend
or similar transaction), then a Change in Control will thereupon be deemed to
have occurred.

 

(d)  Termination of Proposed Change
in Control Transaction.  If,
following a public announcement described in subsection (a), a proposed
transaction is terminated without completion, this Agreement shall thereafter
be construed as though no such announcement had ever been made; provided,
however, that the rights associated with any termination of employment or the
giving of a Notice of Termination during the interim period shall be determined
without regard to this subsection.

 

4

 

3.  Rights in the Event of Certain
Terminations Following Change in Control. 
In the event the Employee validly and timely delivers a Notice of
Termination to Leesport, the Employee shall be entitled to receive the
following payments and benefits:

 

(a)  Basic
Payments.  The Employee shall be paid
an amount equal to one (1.0) times the sum of (i) the Employee’s highest
annualized base salary paid to the Employee during the year of termination of
employment or the immediately preceding two (2.0) calendar years and (ii) the
highest cash bonus paid to the Employee in or with respect to the year of
termination of employment or the immediately preceding two (2.0) calendar years.  Payments under this Section 3(a) shall
be made monthly in twelve (12) equal installments (without interest) beginning
on the first day of the month immediately following the month in which the
Employee delivers the Notice of Termination and continuing on the first day of
each month thereafter.

 

(b)  Health and Medical Benefits.  For a period of one (1.0) year from the date
of termination of employment, the Employee shall be provided, at no charge,
with a continuation of health and medical benefits no less favorable than the
health and medical benefits in effect on the date of termination of the
Employee’s employment.  To the extent
such benefits cannot be provided under a plan because the Employee is no longer
an employee of the Employer, a dollar amount equal to the after-tax cost
(estimated in good faith by Leesport) of obtaining such benefits, or
substantially similar benefits, shall be paid to the Employee periodically, as
appropriate.

 

(c)  Excise Tax Matters.  Notwithstanding anything in this section or
elsewhere in this Agreement to the contrary, in the event the payments and
benefits payable hereunder to or on behalf of the Employee, when added to all
other amounts and benefits payable to or on behalf of the Employee, would
result in the imposition of an excise tax under Section 4999 of the
Internal Revenue Code of 1986, as amended, the amounts and benefits payable
hereunder shall be reduced to such extent as may be necessary to avoid such
imposition.  The Employee shall have the
right, within thirty (30) days of receipt of written notice from Leesport, to
specify which amounts and benefits shall be reduced to satisfy the requirements
of this subsection.  All calculations
required to be made under this subsection will be made by Leesport’s
independent public accountants, subject to the right of the Employee’s
representative to review the same.  The
parties recognize that the actual implementation of the provisions of this
subsection are complex and agree to deal with each other in good faith to
resolve any questions or disagreements arising hereunder.

 

(d)  Primary Obligor.  The obligation to make payments and provide
benefits under this section shall primarily be those of the Employee’s Employer
as of the date of the Employee’s termination of employment.  In the event the Employer is not Leesport or
the Bank, Leesport will cause such Employer to make required payments and
provide required benefits.  To the extent
Leesport fails or is unable to do so, it shall make such payments and provide
such benefits.

 

4.  Legal Expenses.  Leesport will pay (or cause to be paid) to
the Employee all reasonable legal fees and expenses when incurred by the
Employee in seeking to obtain or enforce any right or benefit provided by this
Agreement, provided the Employee acts in good faith with respect to issues
raised.

 

5

 

5.  Notices.  Any notice required or permitted to be given
under this Agreement will, to be effective hereunder, be given to Leesport, in
the case of notices given by the Employee, and will, to be effective hereunder,
be given by Leesport, in the case of notices given to the Employee.  Any such notice will be deemed properly given
if in writing and if mailed by registered or certified mail, postage prepaid
with return receipt requested, to the last known residence address of the
Employee, in the case of notices to the Employee, and to the principal office
of Leesport, in the case of notices to Leesport.

 

6.  Waiver.  No provision of this Agreement may be
modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in writing and signed by the Employee and an Employee officer of
Leesport designated for such purpose by the Board of Directors of Leesport.  No waiver by any party hereto at any time of
any breach by another party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party will be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.

 

7.  Assignment.  This Agreement is not assignable by any party
hereto, except by Leesport and the Bank to any successor in interest to the
respective businesses of Leesport and the Bank.

 

8.  Entire Agreement.  This Agreement contains the entire agreement
of the parties relating to the subject matter hereof and, in accordance with
the provisions of Section 18, supersedes any prior agreement of the
parties.

 

9.  Successors; Binding Effect.

 

(a)  Successors.  Leesport will require any successor (whether
direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of Leesport and/or the Bank to
expressly assume and agree to perform this Agreement (or cause it to be
performed) in the same manner and to the same extent that Leesport, the Bank or
any affiliated company of either would be required to perform it if no such
succession had taken place.  Failure by
Leesport to obtain such assumption and agreement prior to the effectiveness of
any such succession shall constitute a material breach of this Agreement under Section 2(a)(vi).  As used in this Agreement, “Leesport” and the
“Bank” mean Leesport and the Bank as hereinbefore defined and any successor to
the business and/or assets of Leesport and/or the Bank as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

(b)  Binding Effect.  This Agreement shall inure to the benefit of
and be enforceable by the Employee’s personal or legal representatives,
executors, administrators, heirs, distributees, devisees, and legatees.  If the Employee should die while any amount
is payable to the Employee under this Agreement if the Employee had continued
to live, all such amounts, unless otherwise provided herein, will be paid in
accordance with the terms of this Agreement to the Employee’s surviving spouse
or, if there is no such person, to the Employee’s estate.

 

10.  Continuation of Certain Provisions.  Any termination of the Employee’s employment
under this Agreement or of this Agreement will not affect the benefit
provisions of Section 3 or 

 

6

 

4, which will, if relevant,
survive any such termination and remain in full force and effect in accordance
with their respective terms.

 

11   Other Rights.  Except as provided in Sections 3(c) and
18, nothing herein shall be construed as limiting, restricting or eliminating
any rights the Employee may have under any plan, contract or arrangement to
which the Employee is a party or in which the Employee is a vested participant;
provided, however, that any termination payments required hereunder will be in
lieu of any severance benefits to which the Employee may be entitled under a severance
plan or arrangement of Leesport, the Bank, an affiliate of either, or an entity
which is the successor of any of them or an affiliate thereof; and provided
further, that if the benefits under any such plan or arrangement may not
legally be eliminated, then the payments hereunder will be correspondingly
reduced in such equitable manner as the Board of Directors of Leesport may
determine.

 

12.  No Mitigation or Offset.  The Employee shall not be required to
mitigate the amount of any payment or benefit provided for in this Agreement by
seeking employment or otherwise; nor shall any amounts or benefits payable or
provided hereunder be reduced in the event the Employee does secure employment.

 

13.  Validity.  The invalidity or unenforceability of any provisions
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which will remain in full force and effect.

 

14.  Applicable Law.  Except to the extent preempted by federal
law, this Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Pennsylvania without regard to its conflicts of law
principles.

 

15.  Number.  Words used herein in the singular shall be
construed as being used in the plural, as the context requires, and vice versa.

 

16.  Headings.  The headings of the sections and subsections
of this Agreement are for convenience only and shall not control or affect the
meaning or construction or limit the scope or intent of any of the provisions
of this Agreement.

 

17.  References to Entities.  All references to Leesport shall be deemed to
include references to the Bank, or any affiliate of either, as appropriate in
the relevant context, and vice versa; provided, however, that this section
shall not be construed in a manner that results in a determination that a
transaction constitutes a Change in Control unless such transaction is
literally described in the definition of such term.

 

18.  Effective Date; Termination of Prior
Agreements.  This Agreement shall become
effective immediately upon the execution and delivery of the same by the
parties hereto.  Upon the execution and
delivery of this Agreement, any prior agreement relating to the subject matter
hereof will be deemed automatically terminated and be of no further force or
effect.

 

19.  Withholding For Taxes.  All amounts and benefits paid or provided
hereunder shall be subject to withholding for taxes as required by law.

 

7

 

20.  Nonsolicitation of Employees and
Customers.  During the period of time
that any payments and benefits are to be provided to Employee under Section 3,
the Employee shall refrain from directly or indirectly soliciting for
employment or business relationship purposes pertaining to the financial
services business of Leesport or the Bank employees or customers of Leesport,
the Bank or any affiliate of either or any successor to either as of the date
of the Employee’s termination of employment. 
In the event of a breach of this section, the Employee’s right to
payments and benefits under Sections 3 and 4 shall immediately terminate.  Leesport or any successor shall be entitled
to recover any payments or benefits made following the commencement of the
prohibited conduct, but before discovery of the same, and may commence an
action in any court of competent jurisdiction for such additional legal and
equitable relief as it may deem necessary or appropriate to recover damages
incurred by reason of such conduct and to preclude continued violation of this
section.

 

	
   

  	
  LEESPORT
  FINANCIAL CORP.

  
	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Robert D.
  Davis

  
	
   

  	
        Robert
  D. Davis

  	
   

  
	
   

  	
        President
  and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest: 

  	
  /s/ Jenette L.
  Eck

  	
    (SEAL)

  
	
   

  	
        Corporate
  Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEESPORT
  BANK

  
	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Robert D.
  Davis

  	
   

  
	
   

  	
        Robert
  D. Davis

  	
   

  
	
   

  	
        President
  and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest: 

  	
  /s/ Jenette L.
  Eck

  	
    (SEAL)

  
	
   

  	
        Corporate
  Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Edward C. Barrett

  	
   

  	
  /s/  Terry Favilla

  	
    (SEAL)

  
	
   

  	
        Terry Favilla

  	
   

  
									

 

8Exhibit 10.10

 

LOUISIANA-PACIFIC CORPORATION

1992
NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

 

(Amended
and Restated as of August 4, 2007)

 

1.                                      Establishment And Purpose

 

1.1                               Establishment; Amendment
and Restatement.  Louisiana-Pacific Corporation, a Delaware corporation
(“Corporation”), established the Louisiana-Pacific Corporation 1992
Non-Employee Director Stock Option Plan (the “Plan”) effective as of June 15,
1992.  The Plan as amended through May 3,
2004, was approved at Corporation’s 2004 annual meeting of stockholders and was
further amended and restated effective November 3, 2006.  Corporation further amended and restated the
Plan in its current form effective August 4, 2007.

 

1.2                               Purpose. 
The continued growth and success of Corporation are dependent upon the
efforts of members of Corporation’s board of directors (the “Board of
Directors”).  Those members of the Board
of Directors who are not employees of Corporation or any of its subsidiaries
(“Non-Employee Directors”) are not eligible to participate in the stock option
and other stock incentive plans maintained for employees of Corporation.  The purpose of this Plan is to provide an
incentive to Non-Employee Directors to remain as members of the Board of
Directors and also to afford them the opportunity to acquire, or increase,
stock ownership in Corporation in order that they may have a direct proprietary
interest in its success.  Options granted
under the Plan shall be nonqualified options which are not intended to qualify
as incentive stock options under Section 422 of the Internal Revenue Code.

 

2.                                      Stock. 
The stock subject to options granted under the Plan shall be shares of
Corporation’s authorized but unissued, or reacquired, $1 par value common stock
(“Common Stock”).  The total number of
shares of Common Stock with respect to which options may be granted shall not
exceed in the aggregate 1,200,000, provided that such aggregate number of
shares shall be subject to adjustment in accordance with the provisions of
paragraph 6.7.  In the event that any
outstanding option under the Plan is canceled or terminates or expires prior to
the end of the period during which options may be granted under the Plan, the
shares of Common Stock allocable to the unexercised portion of such option may
be made the subject of additional options granted under the Plan.

 

3.                                      Administration. 
The Plan shall be administered by the Nominating and Corporate
Governance Committee of the Board of Directors (the “Committee”), except for
actions to be taken under the Plan which, under the provisions of Rule 16b-3
promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”) or
any successor rule exempting certain transactions from Section 16(b) of
the Exchange Act, cannot be taken by the Committee, which actions shall be taken
by the full Board of Directors.  The
Committee shall have full power and authority, subject to the provisions of the
Plan, to adopt, amend, and rescind rules and regulations for carrying out
the Plan.  The interpretation and
decision of the Committee with regard to any question 

 

 

1

 

arising under the Plan shall be final and
conclusive.  No member of the Committee
shall be liable for any action taken or determination made in good faith with
respect to the Plan or to any options granted pursuant to the Plan.

 

4.             Eligibility. 
The persons eligible to receive options under the Plan are the
Non-Employee Directors of Corporation.

 

5.             Grants
of Options.

 

5.1          Option
Value.  For purposes of this Plan, the value of an
option granted under the Plan (the “Option Value”) shall be the fair value of
an option for the number of shares of Common Stock subject to the option
determined by applying the option-pricing model used by Corporation for
purposes of preparing Corporation’s audited annual financial statements for the
year in which the option is granted.  For
purposes of determining the number of shares to be subject to an option such
that the Option Value of the option is a specified dollar amount, the number of
shares will be rounded down to the highest number of whole shares such that the
Option Value does not exceed the targeted dollar amount.

 

5.2          Prior
Grants.  Grants made under the Plan prior to May 3,
2004, shall be governed by the terms and conditions of the Plan prior to its
amendment and restatement effective as of such date.  Grants made under the Plan on or after May 3,
2004, and before August 4, 2007, shall be governed by the terms and
conditions of the Plan as amended and restated effective May 3, 2004.

 

5.3          Option
Grants to New Non-Employee Directors Beginning August 4, 2007. 
Each person who becomes a Non-Employee Director on or after August 4,
2007, automatically shall be granted, as of the date such person becomes a
Non-Employee Director, an option under the Plan to purchase a number of shares
of Common Stock with an Option Value on the date of grant equal to $30,000
multiplied by a fraction with a numerator equal to the number of days between
the date on which such person became a Non-Employee Director (the “Commencement
Date”) and the June 1 next following the Commencement Date, and a
denominator equal to 365.  All such
options are subject to the terms and conditions described in
paragraph 6.  All subsequent options
granted to such Non-Employee Directors will be granted under
paragraph 5.4(b)(i).

 

5.4          Option
Grants to Continuing Non-Employee Directors Beginning August 4, 2007.

 

(a) Option Grants After August 3, 2007
and Before June 1, 2008.  Each
individual who became a Non-Employee Director prior to August 4, 2007, and
was not granted an option under the Plan between June 1, 2007, and
August 4, 2007, will next be granted an option under the Plan on the
anniversary date of his or her next preceding option grant prior to
June 1, 2007, to purchase a number of shares of Common Stock with an
Option Value equal to $30,000 multiplied by a fraction with a numerator equal
to the number of days between such date and June 1, 2008, and a 

 

 

2

 

denominator equal to 365.  All
such options are subject to the terms and conditions described in
paragraph 6. All subsequent options granted to such Non-Employee Directors
will be granted under paragraph 5.4(b)(i).

 

(b) Annual
Grants Beginning June 1, 2008.

 

(i)  General Provisions Governing Annual
Grants Beginning June 1, 2008.  As of
June 1 of each calendar year beginning June 1, 2008 (an “Annual Grant
Date”), each Non-Employee Director who remains as a Non-Employee Director
through such Annual Grant Date automatically shall be granted an option to
purchase a number of shares of Common Stock with an Option Value on the Annual
Grant Date equal to $30,000, subject to proration as to Non-Employee Directors
who were granted options after June 1, 2007 and before August 4, 2007,
as described in paragraph 5.4(b)(ii) below.  All such options are subject to the terms and
conditions described in paragraph 6.

 

(ii) Non-Employee
Directors Granted Options After June 1, 2007, and Before August 4,
2007. 
Each individual who was granted an option under the Plan after
June 1, 2007, and before August 4, 2007, will next be granted an
option under the Plan on June 1, 2008 to purchase a number of shares of
Common Stock with an Option Value equal to $30,000 multiplied by a fraction
with a numerator equal to the number of days between the date on which such
Non-Employee Director was last granted an option and June 1, 2008, and a
denominator equal to 365.  All such
options are subject to the terms and conditions described in
paragraph 6.  All subsequent options
granted to such Non-Employee Directors will be granted under paragraph
5.4(b)(i).

 

6.             Terms
and Conditions of Options.  Each option
granted pursuant to the Plan shall be subject to the following terms and
conditions:

 

6.1          Payment. 
Upon exercise of an option, in whole or in part, the option price for
shares to which the exercise relates may be made, at the election of the
optionee, either in cash or by delivering to Corporation shares of Common Stock
having a Fair Market Value (as defined below) equal to the option price, or any
combination of cash and Common Stock having a combined value equal to the
option price.  Shares of Common Stock may
not be used in payment or partial payment unless an option is being exercised
for at least 2,000 shares.  Payment in
shares of Common Stock shall be made by delivering to Corporation certificates,
duly endorsed for transfer, representing shares of Common Stock having an
aggregate Fair Market Value on the date of exercise equal to that portion of
the option price which is to be paid in Common Stock.  The Fair Market Value of a share of Common
Stock on any given date means 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 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.  Whenever payment of the option price would
require delivery of a fractional share, the optionee shall deliver the next
lower 

 

 

3

 

whole number of shares of Common Stock and a cash
payment shall be made by the optionee for the balance of the option price.

 

6.2          Option
Price.  The option price per share for each option
granted under the Plan shall be 100 percent of the Fair Market Value per share
on the date the option was granted.

 

6.3          Term
of Option.  Each option shall expire ten years from the
date the option is granted, unless the option is terminated earlier in
accordance with the Plan.

 

6.4          Date
of Exercise.  Unless an option is terminated or the time of
its exercisability is accelerated in accordance with the Plan, each option may
be exercised in whole or in part from time to time to purchase shares as
follows:

 

(a)           Each option shall not be exercisable
until the date which is three months after the option was granted.  On that date, the option shall become
exercisable as to 10 percent of the shares subject to the option (rounded
down to the nearest whole number of shares). 
The option shall become exercisable as to an additional 10 percent
of the shares every three months thereafter until the option is exercisable in
full (which shall occur on the date which is 2.5 years after the date of
grant).

 

(b)           No option shall be exercisable in part
with respect to a number of shares fewer than 100 unless fewer than 100 shares
remain subject to the option.

 

6.5          Acceleration
of Exercisability.  Notwithstanding the
limitations on exercisability pursuant to paragraph 6.4, an option shall become
immediately and fully exercisable:

 

(a)           In the event of the death of the optionee
Non-Employee Director; or

 

(b)           Upon the later of (i) the occurrence
of a “Change in Control” (as defined below) of Corporation and (ii) six
months after the date of grant; or

 

(c)           On the date an optionee Non-Employee
Director retires pursuant to Section 15 of Article II of the bylaws
of Corporation; provided, however, that for options granted prior to November 3,
2006, this paragraph 6.5(c) shall only apply to an additional 20 percent
of the shares covered by such Non-Employee Director’s option.

 

For purposes of
the Plan, a Change of Control shall be deemed to occur if (x) any person
or group, together with its affiliates and associates (other than Corporation
or any of its subsidiaries or employee benefit plans), acquires direct or
indirect beneficial ownership of 20 percent or more of the then outstanding
shares of Common Stock or commences a tender or exchange offer for 30 percent
or more of the then outstanding shares of Common Stock, or (y) Corporation
is to be liquidated or dissolved.  The
terms “group,” “affiliates,” “associates” and “beneficial ownership” shall have
the meanings ascribed to them in the rules and regulations promulgated
under the Exchange Act.

 

 

 

4

 

6.6          Continuation
as a Director.  Notwithstanding the option term provided in
paragraph 6.3, in the event that an optionee Non-Employee Director ceases to be
a member of the Board of Directors:

 

(a)           By reason of death, the estate, personal
representative, or beneficiary of the Non-Employee Director shall have the
right to exercise the option at any time within 12 months from the date of
death and the option shall terminate as of the last day of such 12-month
period; or

 

(b)           By reason of the retirement of an
optionee Non-Employee Director pursuant to Section 15 of Article II
of the bylaws of Corporation, the Non-Employee Director’s option shall remain
exercisable, to the extent it had become exercisable on the date of said
retirement, for a period of 24 months following the date of said retirement and
the option shall terminate as of the last day of such 24-month period; or

 

(c)           For any other reason, the Non-Employee
Director’s option shall remain exercisable, to the extent it had become
exercisable on the date the optionee ceased to be a member of the Board of
Directors (the “Termination Date”), for a period of three months following the
Termination Date and the option shall terminate as of the last day of such
three-month period.

 

6.7          Recapitalization. 
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, combination or exchange of shares or other
form of reorganization, or any Extraordinary Distribution or  other change affecting the Common Stock, the
Committee will make proportionate adjustments in the total number of shares of
Common Stock in respect of which options may be granted under the Plan, the
number of shares covered by each outstanding option, and the exercise price per
share under each such option; however, any fractional shares resulting from any
such adjustment shall be eliminated.  For
this purpose, an “Extraordinary Distribution” means a dividend or other
distribution payable in cash or other property with respect to Corporation’s
Common Stock where the aggregate amount or value of the dividend or
distribution exceeds 5% of the aggregate Fair Market Value of all outstanding
Common Stock as of the business day immediately preceding the date the dividend
or distribution is declared by the Board. 
The Committee may also make similar adjustments in the number of shares
and exercise prices in the event of a spin-off or other distribution (other
than normal cash dividends) of Corporation assets to stockholders that is not
specifically addressed above in this Section 6.7.

 

                                A dissolution of
Corporation, or 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), shall
cause every option outstanding hereunder to terminate concurrently with
consummation of any such dissolution, merger or consolidation, except that the
resulting or surviving corporation (or, in the event Corporation is the
resulting or surviving corporation but has become a subsidiary of another
corporation, such other corporation) may, in its absolute and uncontrolled
discretion, tender an option or options 

 

 

5

 

to purchase its
shares on terms and conditions, both as to number of shares and otherwise,
which will substantially preserve the rights and benefits of any option then
outstanding hereunder.

 

                                In the event of
a change in Corporation’s presently authorized Common Stock which is limited to
a change of all its presently authorized shares with par value into the same
number of shares with a different par value or into the same number of shares
without par value, the shares resulting from any such change shall be deemed to
be Common Stock within the meaning of this Plan.

 

6.8          Transferability. 
No option shall be assignable or transferable other than by will or the
laws of descent and distribution.  During
an optionee’s lifetime, only he or his guardian or legal representative may
exercise any such option or right.

 

6.9          Rights
as a Stockholder.  An optionee Non-Employee Director shall have
no rights as a stockholder with respect to shares covered by the option until
the date of the issuance or transfer of the shares to him and only after such
shares are fully paid.  Except as
provided in paragraph 6.7, no adjustment shall be made for dividends or other
rights for which the record date is prior to the date of such issuance or
transfer.

 

6.10        Provision
for Taxes.  It shall be a condition to Corporation’s
obligation to issue or reissue shares of Common Stock upon exercise of any
option that the optionee pay, or make provision satisfactory to Corporation for
payment of, any federal and state income and other taxes which Corporation is
obligated to withhold or collect with respect to the issue or reissue of such
shares.

 

6.11        Option
Agreement.  Each option granted under the Plan shall be
evidenced by an option agreement substantially in the form attached to the Plan
as Appendix A.

 

7.             Effective
Date and Term of Plan.  The Plan was adopted and
became effective June 15, 1992, and shall continue in effect until options
have been granted covering all available shares of Common Stock as specified in
paragraph 2 or until the Plan is terminated by the Board of Directors,
whichever is earlier, except as provided below.

 

                                The amendment of
Section 5 of the Plan to change the number of options to be granted to a
new Non-Employee Director and the number of options to be granted as Annual
Grants was approved by the Corporation’s stockholders at the May 3, 2004,
annual meeting of Corporation’s stockholders.

 

8.             Amendment
or Termination.  The Board of Directors may alter, amend,
suspend or terminate the Plan at any time. 
Amendments to the Plan shall be subject to stockholder approval to the
extent required to comply with any exemption to the short swing profit
provisions of Section 16(b) of the Exchange Act pursuant to rules and
regulations promulgated thereunder or with the rules and regulations of
any securities exchange or trading system on which the Common Stock is listed
or traded.  

 

 

6

 

Expiration or termination of the Plan shall not affect
outstanding options except as provided in paragraph 7.  The Board of Directors may also modify the
terms and conditions of any outstanding option, subject to the consent of the
optionee and consistent with the provisions of the Plan.

 

9.             Application
of Proceeds.  The proceeds received by Corporation from the
sale of Common Stock pursuant to options shall be available for general
corporate purposes.

 

10.          No
Obligation to Exercise Option.  The granting
of an option shall impose no obligation upon the optionee to exercise the same,
in whole or in part.

 

11.          Restrictions
on Exercise.  Any provision of the Plan to the contrary
notwithstanding, no option granted pursuant to the Plan shall be exercisable at
any time, in whole or in part, (i) prior to the shares of Common Stock
subject to the option being authorized for listing on the New York Stock
Exchange, if applicable, or (ii) if issuance and delivery of the shares of
Common Stock subject to the option would violate any applicable laws or
regulations.

 

 

7

 

APPENDIX A

 

LOUISIANA-PACIFIC CORPORATION

1992 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

 

OPTION AGREEMENT

 

Date of Option
Grant:
                            ,
200     

 

Louisiana-Pacific
Corporation

a Delaware
corporation

414 Union Street

Suite 2000

Nashville,
Tennessee 37219                                                                               (“Corporation”)

 

 

                                                                                                                                (“Optionee”)

 

                Corporation maintains the
Louisiana-Pacific Corporation 1992 Non-Employee Director Stock Option Plan (the
“Plan”).  A copy of the Plan is attached
hereto as Exhibit A and is incorporated by reference in this
Agreement.  Capitalized terms not
otherwise defined in this Agreement have the meanings given them in the Plan.

 

                The Plan is administered by the
Nominating and Corporate Governance Committee of the Board of Directors for the
benefit of Non-Employee Directors of Corporation.

 

                The parties agree as follows:

 

1.             Grant of Option.

 

                Subject to the terms and
conditions of this Agreement and the Plan, Corporation grants, as of the date
of grant set forth above, to the Optionee a stock option (the “Option”) to
purchase            shares of
Corporation’s Common Stock at
$              
per share.

 

2.             Terms of Option.

 

                The option shall be subject to
all the terms and conditions set forth in the Plan.

 

3.             Conditions Precedent.

 

                Corporation will use its best efforts
to obtain approval of the Plan and the Option by any state or federal agency or
authority that Corporation determines has jurisdiction.  If Corporation determines that any required
approval cannot be obtained, the Option shall terminate on notice to the
Optionee to that effect.

 

 

 

1

 

4.             Successorship.

 

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

 

5.             Notices.

 

                Any notices under the Option
shall be in writing and shall be effective when actually delivered personally
or by facsimile or through Corporation interoffice mail service, or, if mailed,
when deposited as registered or certified mail directed to the address of
Corporation’s Principal executive offices or to such other address as a party
may certify by notice to the other party. 
Notices to Corporation shall be sent to the Secretary of Corporation at
Corporation’s address set forth above, or at such other address as Corporation,
by written notice to Optionee, may designate from time to time.

 

	
  CORPORATION:

  	
  LOUISIANA-PACIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  OPTIONEE:

  	
   

  

 

 

 

2

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