Document:

Exhibit
10.1

 

EXECUTION
COPY

 

Goldman Sachs & Co. | 85 Broad Street | New York, New
York 10004 | Tel: 212 902 1000

 

Opening
Transaction

	
  To:

  	
   

  	
  Louisiana-Pacific Corporation

  414 Union Street

  Suite 2000

  Nashville, TN 37219

  
	
   

  	
   

  	
   

  
	
  A/C:

  	
   

  	
  [Insert
  Account Number]

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Goldman, Sachs &
  Co.

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  Accelerated Stock
  Buyback

  
	
   

  	
   

  	
   

  
	
  Ref.
  No:

  	
   

  	
  [Insert Reference Number]

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  August 24, 2005

  

 

This master confirmation (“Master Confirmation”),
dated as of August 24, 2005, is intended to supplement the terms and provisions
of certain Transactions (each, a “Transaction”) entered into from time to time
between Goldman, Sachs & Co. (“GS&Co.”) and Louisiana-Pacific
Corporation (“Counterparty”).  This
Master Confirmation, taken alone, is neither a commitment by either party to
enter into any Transaction nor evidence of a Transaction.  The terms of any particular Transaction shall
be set forth in a Supplemental Confirmation in the form of Schedule A hereto
and which references this Master Confirmation, in which event the terms and
provisions of this Master Confirmation shall be deemed to be incorporated into
and made a part of each such Supplemental Confirmation.  This Master Confirmation and each
Supplemental Confirmation together shall constitute a “Confirmation” as referred
to in the Agreement specified below.

 

The definitions and provisions contained in the 2002
ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by
the International Swaps and Derivatives Association, Inc., are incorporated into
this Master Confirmation.  This Master
Confirmation and each Supplemental Confirmation evidence a complete binding
agreement between Counterparty and GS&Co. as to the terms of each
Transaction to which this Master Confirmation and the related Supplemental
Confirmation relates.

 

All provisions contained in or incorporated by
reference in the form of the 1992 ISDA Master Agreement (Multicurrency — Cross
Border) (the “Agreement”) will govern this Master Confirmation and each
Supplemental Confirmation except as expressly modified below.  This Master Confirmation and each
Supplemental Confirmation, together with all other documents referring to the
Agreement confirming Transactions entered into between GS&Co. and
Counterparty (notwithstanding anything to the contrary in a Supplemental Confirmation),
shall supplement, form a part of, and be subject to the Agreement as if GS&Co.
and Counterparty had executed the Agreement (but without any Schedule except
for (i) the election of Second Method and Loss, the law of the State of New
York as the governing law and US Dollars (“USD”) as the Termination
Currency, (ii) the election that subparagraph (ii) of
Section 2(c) shall not apply to Transactions, and (iii) the election
that the “Cross Default” provisions of Section 5(a)(vi) shall apply to
Counterparty with a “Threshold Amount” of USD 50 million).

 

All provisions contained in the Agreement shall govern
this Master Confirmation and the related Supplemental Confirmation relating to
a Transaction except as expressly modified below or in the related Supplemental
Confirmation.  With respect to any
relevant Transaction, the Agreement, this Master Confirmation and the related
Supplemental Confirmation shall represent the entire agreement and
understanding of the parties 

 

 

with respect to the subject
matter and terms of such Transaction and shall supersede all prior or
contemporaneous written or oral communications with respect thereto.

 

If, in relation to any Transaction to which this
Master Confirmation and related Supplemental Confirmation relate, there is any
inconsistency between the Agreement, this Master Confirmation, any Supplemental
Confirmation and the Equity Definitions that are incorporated into any
Supplemental Confirmation, the following will prevail for purposes of such
Transaction in the order of precedence indicated: (i) such Supplemental
Confirmation; (ii) this Master Confirmation; (iii) the Agreement; and
(iv) the Equity Definitions.

 

1.             Each
Transaction constitutes a Share Forward Transaction for the purposes of the
Equity Definitions.  Set forth below are
the terms and conditions which, together with the terms and conditions set
forth in each Supplemental Confirmation (in respect of each relevant
Transaction), shall govern each such Transaction.

 

General
Terms:

 

	
  Trade Date:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation.

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Counterparty

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  GS&Co.

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

  	
  Shares of Common Stock,
  $1 par value, of Counterparty (Ticker: LPX)

  
	
   

  	
   

  	
   

  
	
  Forward Price:

  	
   

  	
  The average of the New
  York 10b-18 Volume Weighted Average Price per share of the Shares for the
  regular trading session (including any extensions thereof) of the Exchange on
  the related Exchange Business Day in the Calculation Period (without regard
  to pre-open or after hours trading outside of any regular trading session for
  any such Exchange Business Day), as published by Bloomberg at 4:15 p.m. New
  York time on each Exchange Business Day during the Calculation Period.

  
	
   

  	
   

  	
   

  
	
  Calculation Period:

  	
   

  	
  Each Exchange Business
  Day from and including the Exchange Business Day following the Hedge
  Completion Date to and including the Termination Date (as adjusted in
  accordance with Section 5 herein and pursuant to Market Disruption Event
  below).

  
	
   

  	
   

  	
   

  
	
  Termination Date:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation (as the same may be postponed
  in accordance with the provisions of “Calculation Period” and Section 5
  herein).

  
	
   

  	
   

  	
   

  
	
  Hedge Period:

  	
   

  	
  Each Exchange Business
  Day from and including the Trade Date to and including the Hedge Completion
  Date.

  
	
   

  	
   

  	
   

  
	
  Hedge Completion Date:

  	
   

  	
  The Exchange Business
  Day on which GS&Co. finishes establishing its Hedge Positions, as
  determined by GS&Co., as set forth in the Supplemental Confirmation for
  each Transaction.

  
	
   

  	
   

  	
   

  
	
  Hedge Period Reference Price:

  	
   

  	
  The average of the New
  York 10b-18 Volume Weighted Average Price per share of the Shares for the
  regular trading session (including any extensions thereof) of the Exchange on
  the related Exchange Business Day in the Hedge Period (without regard to
  pre-open or after hours trading outside of any regular trading session for
  any such Exchange Business Day), as published by Bloomberg at 4:15 p.m. New
  York time on each Exchange Business Day during the Hedge Period.

  

 

2

 

	
  Market Disruption
  Event:

  	
   

  	
  The definition of
  “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is
  hereby amended by inserting the words “at any time on any Scheduled Trading
  Day during the Hedge Period or Calculation Period or” after the word
  “material,” in the third line thereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding
  anything to the contrary in the Equity Definitions, to the extent that any
  Scheduled Trading Day in the Calculation Period is a Disrupted Day, the
  Termination Date shall be postponed and the Calculation Agent (after
  consultation with Counterparty) shall extend the Calculation Period and make
  reasonable adjustments to the weighting of each Rule 10b-18 eligible
  transaction in the Shares on the relevant Exchange Business Days during the
  Calculation Period for purposes of determining the Forward Price, with such
  adjustments based on, among other factors, the duration of any Market
  Disruption Event and the volume, historical trading patterns and price of the
  Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding
  anything to the contrary in the Equity Definitions, to the extent that any
  Scheduled Trading Day in the Hedge Period is a Disrupted Day, the Calculation
  Agent (after consultation with Counterparty) shall make reasonable
  adjustments to the weighting of each Rule 10b-18 eligible transaction in the
  Shares on the relevant Exchange Business Days during the Hedge Period for
  purposes of determining the Hedge Period Reference Price, with such
  adjustments based on, among other factors, the duration of any Market
  Disruption Event and the volume, historical trading patterns and price of the
  Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To the extent that
  there are 9 consecutive Disrupted Days during the Calculation Period or Hedge
  Period, then notwithstanding the occurrence of a Disrupted Day, the
  Calculation Agent (after consultation with Counterparty) shall have the
  option to either determine the weighting of each Rule 10b-18 eligible
  transaction in the Shares on the relevant Exchange Business Days during the
  Calculation Period or Hedge Period, as applicable, using its good faith
  estimate of the value for the Share on such 9th consecutive day or
  in the case of a Calculation Period elect to further extend the Calculation
  Period as it deems necessary.

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  NYSE

  
	
   

  	
   

  	
   

  
	
  Prepayment\Variable Obligation:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Prepayment Amount:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation.

  
	
   

  	
   

  	
   

  
	
  Prepayment Date:

  	
   

  	
  Three (3) Exchange
  Business Days following the Trade Date.

  
	
   

  	
   

  	
   

  
	
  Seller Payment Amount:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation.

  
	
   

  	
   

  	
   

  
	
  Seller Payment Date:

  	
   

  	
  Three (3) Exchange
  Business Days following the Trade Date.

  
	
   

  	
   

  	
   

  
	
  Counterparty Additional

  	
   

  	
   

  
	
  Payment Amount:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation.

  
	
   

  	
   

  	
   

  
	
  Counterparty Additional

  	
   

  	
   

  
	
  Payment Date:

  	
   

  	
  Three (3) Exchange
  Business Days following the Trade Date.

  

 

3

 

Settlement Terms:

 

	
  Physical Settlement:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Number of Shares

  	
   

  	
   

  
	
  to be Delivered:

  	
   

  	
  A number of Shares equal to (a) the Prepayment
  Amount divided by (b) the Forward Price; provided that the Number of Shares
  to be Delivered will be no less than the Minimum Shares and no greater than
  the Maximum Shares. The Number of Shares to be Delivered on the Settlement
  Date shall be reduced, but not below zero, by any Shares delivered pursuant
  to the Initial Share Delivery and the Minimum Share Delivery below.

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  Three (3) Exchange
  Business Days following the Termination Date.

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD (all amounts shall
  be converted to the Settlement Currency in good faith and in a commercially
  reasonable manner by the Calculation Agent).

  
	
   

  	
   

  	
   

  
	
  Initial Shares:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation.

  
	
   

  	
   

  	
   

  
	
  Initial Share Delivery:

  	
   

  	
  GS&Co. shall
  deliver a number of shares equal to the Initial Shares to Counterparty on the
  Initial Share Delivery Date in accordance with Section 9.4 of the Equity
  Definitions, with the Initial Share Delivery Date deemed to be a “Settlement
  Date” for purposes of such Section 9.4.

  
	
   

  	
   

  	
   

  
	
  Initial Share Delivery Date:

  	
   

  	
  Three (3) Exchange Business Days following the Trade
  Date.

  
	
   

  	
   

  	
   

  
	
  Minimum Shares:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation.

  
	
   

  	
   

  	
   

  
	
  Minimum Share Delivery:

  	
   

  	
  GS&Co. shall
  deliver a number of shares equal to the excess, if any, of the Minimum Shares
  over the Initial Shares on the Minimum Share Delivery Date in accordance with
  Section 9.4 of the Equity Definitions, with the Minimum Share Delivery Date
  deemed to be a “Settlement Date” for purposes of such Section 9.4.

  
	
   

  	
   

  	
   

  
	
  Minimum Share Delivery Date:

  	
   

  	
  Three (3) Exchange
  Business Days following the Hedge Completion Date.

  
	
   

  	
   

  	
   

  
	
  Maximum Shares:

  	
   

  	
  For each Transaction,
  as set forth in the Supplemental Confirmation.

  

 

	
  Share
  Adjustments:

  	
   

  	
   

  	
   

  	
   

  

 

	
  Method of Adjustment:

  	
   

  	
  Calculation Agent
  Adjustment

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Extraordinary Events:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consequences of

  	
   

  	
   

  	
   

  	
   

  
	
  Merger Events and

  	
   

  	
   

  	
   

  	
   

  
	
  Tender Offers:

  	
   

  	
   

  	
   

  	
   

  

 

	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Component Adjustment

  

 

4

 

	
  Determining Party:

  	
   

  	
  GS&Co.

  	
   

  	
   

  

 

	
  Nationalization,

  	
   

  	
   

  
	
  Insolvency or Delisting:

  	
   

  	
  Negotiated Close-out; provided that in addition to
  the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall
  also constitute a Delisting if the Shares are not immediately re-listed,
  re-traded or re-quoted on any of the New York Stock Exchange, the American
  Stock Exchange or The Nasdaq National Market (or their respective
  successors); if the Shares are immediately re-listed, re-traded or re-quoted
  on any such exchange or quotation system, such exchange or quotation system
  shall be deemed to be the Exchange.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional Disruption Events:

  	
   

  	
   

  	
   

  	
   

  

 

	
  (a)

  	
   

  	
  Change in Law:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Failure to Deliver:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Insolvency Filing:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Loss of Stock Borrow:

  	
   

  	
  Applicable; furthermore Sections 12.9(a)(vii) and
  12.9(b)(iv) of the Equity Definitions are amended by deleting the words “at a
  rate equal to or less than the Maximum Stock Loan Rate” and replacing them
  with “at a rate of return equal to or greater than zero”.

  

 

	
  Hedging Party:

  	
   

  	
  GS&Co.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  GS&Co.

  	
   

  	
   

  

 

	
  Non-Reliance/Agreements and

  	
   

  	
   

  
	
  Acknowledgements Regarding

  	
   

  	
   

  
	
  Hedging Activities/Additional

  	
   

  	
   

  
	
  Acknowledgements:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Transfer:

  	
   

  	
  Notwithstanding
  anything to the contrary in the Agreement, GS&Co. may assign, transfer
  and set over all rights, title and interest, powers, privileges and remedies
  of GS&Co. under any Transaction, in whole or in part, to an affiliate of
  GS&Co. that is guaranteed by The Goldman Sachs Group, Inc. without the
  consent of Counterparty.

  
	
   

  	
   

  	
   

  
	
  Counterparty’s Contact
  Details

  	
   

  	
   

  
	
  for Purpose of Giving
  Notice:

  	
   

  	
  To be provided by
  Counterparty

  
	
   

  	
   

  	
   

  
	
  GS&Co.’s Contact
  Details for

  	
   

  	
   

  
	
  Purpose of Giving
  Notice:

  	
   

  	
  Telephone No.:

  	
   

  	
  (212) 902-8996

  
	
   

  	
   

  	
  Facsimile No.:

  	
   

  	
  (212) 902-0112

  
	
   

  	
   

  	
  Attention: Equity
  Operations: Options and Derivatives

  
	
   

  	
   

  	
   

  
	
  GS&Co. Payment
  Instructions:

  	
   

  	
  JP Morgan Chase Bank ,
  N.A.

  
	
   

  	
   

  	
  For A/C Goldman, Sachs
  & Co.

  
	
   

  	
   

  	
  A/C #930-1-011483

  
	
   

  	
   

  	
  ABA: 021-000021

  
	
   

  	
   

  	
   

  
	
  2.             Calculation
  Agent.

  	
   

  	
  GS&Co.

  

 

5

 

3.             Additional
Mutual Representations, Warranties and Covenants.  In addition to the representations and
warranties in the Agreement:

 

(a)           Eligible
Contract Participant.  Each party
represents and warrants to the other party that it is an “eligible contract
participant”, as defined in the U.S. Commodity Exchange Act (as amended), and
is entering into each Transaction hereunder as principal and not for the
benefit of any third party; and

 

(b)           Accredited
Investor.  Each party acknowledges
that the offer and sale of each Transaction to it is intended to be exempt from
registration under the Securities Act of 1933, as amended (the “Securities Act”),
by virtue of Section 4(2) thereof and the provisions of Regulation D thereunder
(“Regulation D”).  Accordingly, each
party represents and warrants to the other that (i) it has the financial
ability to bear the economic risk of its investment in each Transaction and is
able to bear a total loss of its investment, (ii) it is an “accredited
investor” as that term is defined under Regulation D, (iii) it will purchase
each Transaction for investment and not with a view to the distribution or
resale thereof, and (iv) the disposition of each Transaction is restricted
under this Master Confirmation and each Supplemental Confirmation, the
Securities Act and state securities laws.

 

(c)           Collateral.  Each party acknowledges that no collateral is
required to be posted in connection with any Transaction.

 

(d)           Share
Settlement.  For the avoidance of
doubt, each party acknowledges that Counterparty shall have the right, in its
sole discretion, to make any payment required to be made by it, either pursuant
to a Counterparty Additional Payment Amount or pursuant to Section 6(e) of the
Agreement or Sections 12.7 or 12.9 of the Equity Definitions (except with
respect to any portion of the consideration for the Shares consisting of cash
in the event of a Merger Event or Tender Offer) following the occurrence of an
Early Termination Date or Extraordinary Event, by electing to share settle the
Transactions under this Master Confirmation. 
In no event shall the number of Shares required to be delivered by
Counterparty in connection with a share settlement exceed the number of
Reserved Shares (as defined in the Supplemental Confirmation).

 

4.             Additional
Representations, Warranties and Covenants of Counterparty.  In addition to the representations,
warranties and covenants in the Agreement and those contained herein, as of (i)
the date hereof, (ii) the Trade Date and (iii) to the extent indicated below,
each day during the Hedge Period and Calculation Period, Counterparty
represents, warrants and covenants to GS&Co. that:

 

(a)           the
purchase or writing of each Transaction will not violate Rule 13e-1 or
Rule 13e-4 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”);

 

(b)           other than
any information to be disseminated contemporaneously with the announcement of
the Transaction, it is not entering into any Transaction on the basis of, and is
not aware of, any material non-public information with respect to the Shares or
in anticipation of, in connection with, or to facilitate, a distribution of its
securities, a self tender offer or a third-party tender offer;

 

(c)           it is not
entering into any Transaction to create, and will not engage in any other
securities or derivative transaction to create, a false or misleading
appearance of active trading or market activity in the Shares (or any security
convertible into or exchangeable for the Shares), or which would otherwise
violate the Exchange Act;

 

(d)           each Transaction is being entered into pursuant to a
publicly disclosed Share buy-back program and its Board of Directors has
approved the use of derivatives to effect the Share buy-back program;

 

(e)           notwithstanding
the generality of Section 13.1 of the Equity Definitions, it acknowledges that GS&Co.
is not making any representations or warranties with respect to the treatment
of any Transaction under FASB Statements 133 (as amended) or 150, EITF 00-19
(or any successor issue statements) or under FASB’s Liabilities & Equity
Project;

 

6

 

(f)            it is in
compliance with its reporting obligations under the Exchange Act in all
material respects and its most recent Annual Report on Form 10-K, together with
all reports subsequently filed by it pursuant to the Exchange Act, taken
together and as amended and supplemented to the date of this representation, do
not, as of their respective filing dates, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
in which they were made, not misleading;

 

(g)           it shall report each Transaction as required under
Regulation S-K under the Exchange Act; and

 

(h)           except in
accordance with Section 5, during the Hedge Period and the Calculation Period (as
extended or suspended pursuant to the provisions of Section 5 and “Calculation
Period” herein), the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares shall not be subject to a “restricted
period” as such term is defined in Regulation M promulgated under the Exchange
Act and, to the extent that this representation is not true and correct on any
day during the Hedge Period or the Calculation Period, Counterparty agrees to
provide written notice to GS&Co. to that effect on each such day.

 

5.             Suspension
of Hedge Period and/or Calculation Period.

 

(a)           If
Counterparty concludes that it will be engaged in a distribution of the Shares
for purposes of Regulation M, Counterparty agrees that it will, on one
Scheduled Trading Day’s written notice, direct GS&Co. not to purchase
Shares in connection with hedging any Transaction during the “restricted period”
(as defined in Regulation M).  If on any Scheduled Trading Day, Counterparty delivers written
notice (and confirms by telephone) by 8:30 a.m. New York Time (the “Notification
Time”) then such notice shall be effective to suspend the Calculation Period or
the Hedge Period, as the case may be, as of such Notification Time.  In the event that Counterparty delivers
notice and/or confirms by telephone after the Notification Time, then the Calculation
Period or the Hedge Period, as the case may be, shall be suspended effective as
of 8:30 a.m. New York Time on the following Scheduled Trading Day or as
otherwise required by law or agreed between Counterparty and GS&Co.  The Calculation Period shall be suspended and
the Termination Date extended for each Scheduled Trading Day in such restricted
period.

 

(b)           In the
event that GS&Co. reasonably concludes that it is required with respect to
any legal, regulatory or self-regulatory requirements or related policies and
procedures imposed by law, rule or regulation on GS&Co., for it to refrain
from purchasing Shares on any Scheduled Trading Day during the Hedge Period or
the Calculation Period, GS&Co. may by written notice to Counterparty (confirmed
by telephone) elect to suspend the Hedge Period or the Calculation Period for
such number of Scheduled Trading Days as is specified in the notice.  The notice shall not specify, and GS&Co.
shall not otherwise communicate to Counterparty, the reason for GS&Co.’s
election to suspend the Hedge Period or the Calculation Period.  The Calculation Period shall be suspended and
the Termination Date extended for each Scheduled Trading Day occurring during
any such suspension.

 

(c)           In the
event that the Calculation Period is suspended pursuant to Section 5(a) or (b)
above during the regular trading session on the Exchange, then the Calculation
Agent (after consultation with Counterparty) shall, in calculating the Forward Price,
extend the Calculation Period and make adjustments to the weighting of each Rule
10b-18 eligible transaction in the Shares on the relevant Exchange Business
Days during the Calculation Period for purposes of determining the Forward
Price, with such adjustments based on, among other factors, the duration of any
such suspension and the volume, historical trading patterns and price of the
Shares.

 

6.             Counterparty Purchases. 
Counterparty represents, warrants and covenants to GS&Co. that for
each Transaction:

 

(a)           Counterparty is entering into this Master
Confirmation and each Transaction hereunder in good faith and not as part of a
plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act
(“Rule 10b5-1”).  It is the intent of the
parties that each Transaction entered into under this Master Confirmation
comply with the requirements of Rule 10b5-1(c)(1)(i)(A) and (B) and each
Transaction entered into under this Master Confirmation shall be interpreted to
comply with the requirements of Rule 10b5-1(c). 
Counterparty will not seek to control or influence GS&Co. to make “purchases
or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3))
under 

 

7

 

any Transaction
entered into under this Master Confirmation, including, without limitation,
GS&Co.’s decision to enter into any hedging transactions.  Counterparty represents and warrants that it
has consulted with its own advisors as to the legal aspects of its adoption and
implementation of this Master Confirmation, each Supplemental Confirmation and
each Trade Notification under Rule 10b5-1; and

 

(b)           During the
Hedge Period and the Calculation Period, Counterparty (or any “affiliated
purchaser” as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”))
shall not without the prior written consent of GS&Co., purchase any Shares,
listed contracts on the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares (including, without limitation, any Rule
10b-18 purchases of blocks (as defined in Rule 10b-18)) during any Hedge Period
or Calculation Period (as extended pursuant to the provisions of Section 5 and “Calculation
Period” herein); provided that, notwithstanding the foregoing, Counterparty may
make any such purchases so long as such purchases shall not cause GS&Co.’s
purchases of shares during the Hedge Period or the Calculation Period not to
comply with Rule 10b-18.  However, the foregoing shall not limit Counterparty’s
ability, pursuant to its employee incentive plan, to re-acquire Shares in
connection with the related equity transactions or to limit Counterparty’s
ability to withhold shares to cover tax liabilities associated with such equity
transactions, and in connection with any such purchase Counterparty will
be deemed to represent to GS&Co. that such purchase does not constitute a “Rule
10b-18 Purchase” (as defined in Rule 10b-18). 
To the extent that Counterparty makes any such purchase other than
through GS&Co., or other than in connection with any Transaction,
Counterparty hereby represents and warrants to GS&Co. that (a) it will not
take other action that would or could cause GS&Co.’s purchases of the
Shares during the Hedge Period or the Calculation Period not to comply with
Rule 10b-18 and (b) any such purchases will not otherwise constitute a
violation of Section 9(a) or Rule 10(b) of the Exchange Act.  This subparagraph (a) shall not restrict any
purchases by Counterparty of Shares effected during any suspension of any Hedge
Period or Calculation Period in accordance with Section 5 hereof.

 

7.             Additional
Termination Events.  Additional
Termination Event will apply.  Notwithstanding
anything to the contrary in the Equity Definitions:

 

(a)           the
occurrence of a Nationalization, Insolvency or a Delisting (in each case
effective on the Announcement Date as determined by the Calculation Agent) will
constitute an Additional Termination Event with Counterparty as the sole Affected
Party; and

 

(b)           in respect
of any Extraordinary Dividend (as specified in the Supplemental Confirmation)
by Counterparty, one day prior to the related ex-dividend date; provided that
in the event that GS&Co. and Counterparty enter into a mutually acceptable
new transaction (using their good faith and commercially reasonable efforts) on
or prior to one day prior to the ex-dividend date in respect of the
Extraordinary Dividend, the amounts determined pursuant to Section 6(e) of the
Agreement or otherwise to be owed by Counterparty and GS&Co. with respect
to the Affected Transaction(s) shall be deemed to be only the amounts that
would otherwise be owed hereunder in respect of the Number of Shares to be
Delivered (the “Termination Number of Shares to be Delivered”) and the
Counterparty Additional Payment Amount if the Early Termination Date were the
Settlement Date, and shall be payable in cash or (in the case of the
Counterparty) by share settlement or a combination of the two.  In the event that an Early Termination Date
would otherwise occur pursuant to this clause 7(b) while the Counterparty is in
possession of, or is aware of, material, non-public information, the Early Termination
Date shall not be deemed to occur until the day after the day on which
Counterparty is not in possession of, and is not aware of, material non-public
information so long as, if, at the Counterparty’s option, on or prior to one
day prior to the ex-dividend date for such Extraordinary Dividend, Counterparty
agrees to pay GS&Co. no later than the earlier of the entry into the new
transaction or the dividend payment date for such Extraordinary Dividend, a
fixed amount in cash or by share settlement or a combination of the two, that
shall be determined in good faith by GS&Co. as having a value equal to (i)
the amount per share of such Extraordinary Dividend multiplied by (ii) the
actual number of Shares that will remain borrowed by GS&Co. in connection
with any Hedge Positions related to the Transaction as of such ex-dividend
date.  If the Counterparty does not so
agree on or prior to one day prior to the ex-dividend date for such
Extraordinary Dividend, the Early Termination Date shall occur at the close of
business on the Exchange Business Day that is one day prior to the ex-dividend
date.  For purposes of this Section 7(b),
the Termination Number of Shares to be Delivered shall mean a number of shares
equal to the product of (a) the Minimum Number of Shares multiplied by (b) the
quotient of Termination Trading Days divided by the number of Scheduled Trading
Days in the Calculation Period (excluding any day(s) on which the Calculation
Period was suspended in accordance with Section 5 herein or as a result of any
Scheduled Trading Day being a Disrupted Day). 
Also for purposes of this 

 

8

 

Section 7(b), “Termination
Trading Days” shall mean the number of Exchange Business Days (excluding any
day(s) on which the Calculation Period was suspended in accordance with Section
5 herein or as a result of any Scheduled Trading Day being a Disrupted Day)
from and including the Exchange Business Day following the Hedge Completion
Date to and including the Early Termination Date.  With respect to this Additional Termination
Event, both parties shall be Affected Parties.

 

8.             Special
Provisions for Merger Events. 
Notwithstanding anything to the contrary herein or in the Equity
Definitions, to the extent that an Announcement Date for a potential Merger
Transaction occurs during any Calculation Period:

 

(a)           Promptly
after request from GS&Co., Counterparty shall provide GS&Co. with
written notice specifying (i) Counterparty’s average daily Rule 10b-18
Purchases (as defined in Rule 10b-18) during the three full calendar months
immediately preceding the Announcement Date that were not effected through
GS&Co. or its affiliates and (ii) the number of Shares purchased pursuant
to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full
calendar months preceding the Announcement Date.  Such written notice shall be deemed to be a
certification by Counterparty to GS&Co. that such information is true and
correct.  Counterparty understands that
GS&Co. will use this information in calculating the trading volume for
purposes of Rule 10b-18; and

 

(b)           GS&Co.
(after consultation with Counterparty) may (i) make adjustments to the terms of
any Transaction, including, without limitation, the Termination Date, and the
Maximum Shares to account for the number of Shares that could be purchased on
each day during the Calculation Period in compliance with Rule 10b-18 following
the Announcement Date, provided that Counterparty shall not be required to make
any additional cash payments or deliver any Shares in connection with any such
adjustments or (ii) treat the occurrence of the Announcement Date as an
Additional Termination Event with Counterparty as the sole Affected Party.

 

“Merger Transaction” means any merger, acquisition or
similar transaction involving a recapitalization as contemplated by Rule
10b-18(a)(13)(iv) under the Exchange Act.

 

9.             Governing
Law.  The Agreement, this Master
Confirmation, each Supplemental Confirmation and all matters arising in
connection with the Agreement, this Master Confirmation and each Supplemental
Confirmation shall be governed by, and construed and enforced in accordance
with, the laws of the State of New York.

 

10.           Offices.

 

(i)            The
Office of GS&Co. for each Transaction is: 
One New York Plaza, New York, New York 10004.

 

(ii)           The Office
of Counterparty for each Transaction is: 
414 Union Street, Suite 2000, Nashville,
TN  37219.

 

11.           Arbitration.  The Agreement, this Master Confirmation and
each Supplemental Confirmation are subject to the following arbitration
provisions:

 

(a)           All
parties to this Confirmation are giving up the right to sue each other in
court, including the right to a trial by jury, except as provided by the rules
of the arbitration forum in which a claim is filed.

 

(b)           Arbitration
awards are generally final and binding; a party’s ability to have a court
reverse or modify an arbitration award is very limited.

 

(c)           The
ability of the parties to obtain documents, witness statements and other
discovery is generally more limited in arbitration than in court proceedings.

 

(d)           The
arbitrators do not have to explain the reason(s) for their award.

 

9

 

(e)           If
NYSE or NASD-DR arbitration is elected, the panel of arbitrators will typically
include a minority of arbitrators who were or are affiliated with the
securities industry, unless Counterparty is a member of the organization
sponsoring the arbitration facility, in which case all arbitrators may be
affiliated with the securities industry.

 

(f)            The
rules of some arbitration forums may impose time limits for bringing a claim in
arbitration.  In some cases, a claim that
is ineligible for arbitration may be brought in court.

 

(g)           The
rules of the arbitration forum in which the claim is filed, and any amendments
thereto, shall be incorporated into this Confirmation.

 

Any controversy between or among GS&Co. or its
affiliates, or any of its or their partners, directors, agents or employees, on
the one hand, and Counterparty or its agents and affiliates, on the other hand,
arising out of or relating to the Agreement or any Transaction entered into
hereunder, shall be settled by arbitration, in accordance with the then current
rules of, at Counterparty’s election, the American Arbitration Association, The
New York Stock Exchange, Inc. (the “NYSE”) or NASD Dispute Resolution (“NASD-DR”),
in the applicable case accordance with their arbitration rules then in force.  If Counterparty does not make such election
by registered mail addressed to GS&Co. within five (5) Exchange Business
Days after receipt of notification from GS&Co. requesting such election,
then Counterparty irrevocably authorizes GS&Co. to make such election on
behalf of Counterparty.  The award of the
arbitrators shall be final, and judgment upon the award rendered may be entered
in any court, state or federal, having jurisdiction.

 

Neither party shall bring a putative or certified
class action to arbitration, nor seek to enforce any pre-dispute arbitration
agreement against any person who has initiated in court a putative class action
or who is a member of a putative class who has not opted out of the class with
respect to any claims encompassed by the putative class action until:

 

(i) the class
certification is denied;

 

(ii) the class is
decertified; or

 

(iii) the party is
excluded from the class by the court.

 

Such forbearance to enforce an agreement to
arbitrate shall not constitute a waiver of any rights under this Confirmation
except to the extent stated herein.”

 

10

 

12.           Counterparty
hereby agrees (a) to check this Master Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and
rectified and (b) to confirm that the foregoing (in the exact form provided by GS&Co.)
correctly sets forth the terms of the agreement between GS&Co. and
Counterparty with respect to any particular Transaction to which this Master
Confirmation relates, by manually signing this Master Confirmation or this page
hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to
Equity Derivatives Documentation Department, Facsimile No. 212-428-1980/83.

 

 

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN, SACHS & CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ FRANK HUJBER

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

	
  Agreed and Accepted By:

  	
   

  
	
   

  	
   

  
	
  LOUISIANA-PACIFIC CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  
	
  By:

  	
   /s/ CURTIS M. STEVENS

  	
   

  
	
   

  	
   Name: Curtis M Stevens

  
	
   

  	
   Title: Chief Financial OfficerExhibit 10.2

 

SCHEDULE
A

 

SUPPLEMENTAL
CONFIRMATION

 

	
  To:

  	
   

  	
  Louisiana-Pacific
  Corporation

  414 Union Street

  Suite 2000

  Nashville, TN 37219

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Goldman, Sachs &
  Co.

  
	
   

  	
   

  	
   

  
	
  Subject:

  	
   

  	
  Accelerated Stock
  Buyback

  
	
   

  	
   

  	
   

  
	
  Ref.
  No:

  	
   

  	
  [Insert Reference No.]

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  August 24, 2005

  

 

The purpose of this Supplemental Confirmation is to
confirm the terms and conditions of the Transaction entered into between Goldman,
Sachs & Co. (“GS&Co.”) and Louisiana-Pacific Corporation (“Counterparty”)
(together, the “Contracting Parties”) on the Trade Date specified below.  This
Supplemental Confirmation is a binding contract between GS&Co. and
Counterparty as of the relevant Trade Date for the Transaction referenced
below.

 

The definitions and provisions contained in the Master
Confirmation specified below are incorporated into this Supplemental
Confirmation.  In the event of any inconsistency between those
definitions and provisions and this Supplemental Confirmation, this
Supplemental Confirmation will govern.

 

1.             This
Supplemental Confirmation supplements, forms part of, and is subject to the
Master Confirmation dated as of August 24, 2005 (the “Master Confirmation”)
between the Contracting Parties, as amended and supplemented from time to time.  All
provisions contained in the Master Confirmation govern this Supplemental
Confirmation except as expressly modified below.

 

2.             The
terms of the Transaction to which this Supplemental Confirmation relates are as
follows:

 

	
  Trade Date:

  	
   

  	
  August 24, 2005

  
	
   

  	
   

  	
   

  
	
  Hedge Completion Date:

  	
   

  	
  As set forth in the
  Trade Notification.

  
	
   

  	
   

  	
   

  
	
  Termination Date:

  	
   

  	
  As set forth in the
  Trade Notification, which date shall
  be approximately 5 months after the Hedge Completion Date.

  
	
   

  	
   

  	
   

  
	
  Prepayment Amount:

  	
   

  	
  USD 150,000,000

  
	
   

  	
   

  	
   

  
	
  Counterparty Additional
  Payment Amount:

  	
   

  	
  As set forth in the
  Trade Notification.

  
	
   

  	
   

  	
   

  
	
  Seller Payment Amount:

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
   

  
	
  Initial Shares:

  	
   

  	
  4,500,000

  
	
   

  	
   

  	
   

  
	
  Minimum Shares:

  	
   

  	
  A number of Shares equal to (a) the Prepayment Amount divided by (b)
  110% of the Hedge Period Reference Price, or, if greater, the Initial Shares.

  

 

A-1

 

	
  Maximum Shares:

  	
   

  	
  A number of shares equal to (a) the Prepayment Amount divided by (b)
  94% of the Hedge Period Reference Price, or, if greater, the Initial Shares.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Dividend:

  	
   

  	
  Any cash dividend
  declared by Counterparty in excess of USD 0.14 per Share.

  
	
   

  	
   

  	
   

  
	
  Reserved Shares:

  	
   

  	
  A number of shares, as
  specified in the Trade Notification, equal to two times the Minimum Shares.

  

 

3.             Counterparty represents and warrants to GS&Co. that neither it nor any “affiliated purchaser”
(as defined in Rule 10b-18 under the Exchange Act) has made any purchases of
blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act
during the four full calendar weeks immediately preceding the Trade Date.

 

A-2

 

Counterparty hereby agrees (a) to check this
Supplemental Confirmation carefully and immediately upon receipt so that errors
or discrepancies can be promptly identified and rectified and (b) to
confirm that the foregoing (in the exact form provided by GS&Co.) correctly
sets forth the terms of the agreement between GS&Co. and Counterparty with
respect to this Transaction, by manually signing this Supplemental Confirmation
or this page hereof as evidence of agreement to such terms and providing the
other information requested herein and immediately returning an executed copy
to Equity Derivatives Documentation Department, facsimile No. 212-428-1980/83.

 

	
   

  	
  Yours sincerely,

  
	
   

  	
   

  
	
   

  	
  GOLDMAN, SACHS & CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ FRANK HUJBER

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

	
  Agreed and Accepted By:

  	
   

  
	
   

  	
   

  
	
  LOUISIANA-PACIFIC CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  
	
  By:

  	
    /s/ CURTIS M. STEVENS

  	
   

  
	
   

  	
    Name: Curtis M. Stevens

  
	
   

  	
    Title: Chief Financial Officer

  
				

 

 

SCHEDULE
B

 

TRADE
NOTIFICATION

 

	
  To:

  	
   

  	
  Louisiana-Pacific Corporation

  414 Union Street

  Suite 2000

  Nashville, TV 37219

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Goldman, Sachs &
  Co.

  
	
   

  	
   

  	
   

  
	
  Subject:

  	
   

  	
  Accelerated Stock
  Buyback

  
	
   

  	
   

  	
   

  
	
  Ref.
  No:

  	
   

  	
  [Insert
  Reference No.]

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  [Insert Date]

  

 

The purpose of this Trade Notification is to notify
you of certain terms in the Transaction entered into between Goldman, Sachs
& Co. (“GS&Co.”) and LOUISIANA-PACIFIC
CORPORATION (“Counterparty”)
(together, the “Contracting Parties”) on the Trade Date specified below.

 

The definitions and provisions contained in the
Supplemental Confirmation specified below are incorporated into this Trade
Notification.  In the event of any inconsistency between those
definitions and provisions and this Trade Notification, this Trade Notification
will govern.

 

This Trade Notification supplements, forms part of,
and is subject to the Supplemental Confirmation dated as of August
24, 2005 (the “Supplemental Confirmation”) between the Contracting
Parties, as amended and supplemented from time to time.  All
provisions contained in the Supplemental Confirmation govern this Trade
Notification.

 

 

	
  Trade Date:

  	
  August 24, 2005

  
	
   

  	
   

  
	
  Hedge Completion Date:

  	
  [                
  ]

  
	
   

  	
   

  
	
  Termination Date:

  	
  [                
  ]

  
	
   

  	
   

  
	
  Minimum Shares:

  	
  [                
  ]

  
	
   

  	
   

  
	
  Maximum Shares:

  	
  [                
  ]

  
	
   

  	
   

  
	
  Reserved Shares:

  	
  [                
  ]

  
	
   

  	
   

  
	
  Counterparty Additional
  Payment Amount:

  	
  USD [        ]

  

 

 

	
   

  	
  Yours sincerely,

  
	
   

  	
  GOLDMAN,
  SACHS & CO.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

B-1

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