Document:

Exhibit
10.11

 

LOUISIANA-PACIFIC
CORPORATION

 

1997
INCENTIVE STOCK AWARD PLAN

 

Effective
March 1, 1997

 

(As
amended through November 3, 2006)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOUISIANA-PACIFIC
CORPORATION

1997
INCENTIVE STOCK AWARD PLAN

 

ARTICLE
1.  ESTABLISHMENT AND PURPOSE

 

                1.1           Establishment; Amendment and Restatement.  LOUISIANA-PACIFIC CORPORATION (“Corporation”)
established the Louisiana-Pacific Corporation 1997 Incentive Stock Award Plan
(the “Plan”) effective as of March 1, 1997.  The original Plan was approved at
Corporation’s 1997 annual meeting of stockholders and the Plan as amended
through May 3, 2004, was approved at Corporation’s 2004 annual meeting of
stockholders.  Corporation further
amended the Plan in its current form effective November 3, 2006.

 

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

 

ARTICLE
2.  DEFINITIONS

 

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

 

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

 

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

 

                “Board”
means the Board of Directors of Corporation.

 

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

 

                “Committee”
means the Compensation Committee of the Board.

 

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

 

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

 

 

 

1

 

                “Exchange
Act” means the Securities Exchange Act of 1934.

 

                “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.

 

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

 

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

 

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

 

                “Share”
means a share of Common Stock.

 

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

 

                “Vest”
or “Vested” means:

 

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

 

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

 

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

 

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

 

 

 

2

 

ARTICLE
3.  ADMINISTRATION

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

                4.1           Duration of the Plan.  The Plan became effective March 1,
1997.  The Plan will remain in effect
until Awards have been granted covering all the available Shares and all
outstanding Awards have been exercised, settled, or terminated in accordance
with the terms of the applicable Award Agreement, or the Plan is otherwise
terminated by the Board.  Termination of
the Plan will not affect outstanding Awards.

 

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

 

                Louisiana-Pacific Corporation
1991 Employee Stock Option Plan;

 

                Louisiana-Pacific Corporation
1984 Employee Stock Option Plan; and

 

                Louisiana-Pacific Corporation
Key Employee Restricted Stock Plan.

 

The Plan will
neither affect the operation of the Prior Plans nor be affected by the Prior
Plans, except that no further stock options or restricted stock awards will be
granted 

 

 

3

 

under any of the
Prior Plans after the date the Plan is approved by Corporation’s stockholders
as described in Article 15.

 

                4.3           General Limitation on Awards.  Subject to adjustment pursuant to Article 12
of the Plan, (a) the maximum number of Shares for which Awards may be
granted under the Plan may not exceed 15,000,000 Shares and (b) the
maximum number of Shares for which Awards other than Awards for stock options
and stock appreciation rights under Articles 7, 8 or 11 of the Plan may be
granted may not exceed a total of 4,500,000 Shares.

 

                4.4           Cancellation or Expiration of Awards.

 

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

 

                (b)           Stock Appreciation Rights.  For stock appreciation rights granted
pursuant to Article 8, the number of Shares available for grants of Awards
under the Plan will initially be reduced by the number of Shares subject to the
stock appreciation rights Award.  Upon
final settlement of the stock appreciation rights Award, the total number of
Shares subject to the Award that are in excess of the Shares actually issued in
settlement of the Award will again become available for additional Awards under
the Plan.

 

ARTICLE
5.  ELIGIBILITY

 

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

 

ARTICLE
6.  AWARDS

 

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

 

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

 

 

 

4

 

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

 

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

 

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

 

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

 

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

 

ARTICLE
7.  STOCK OPTIONS

 

                The option price for each stock
option may not be less than 100 percent of the Fair Market Value of the Common
Stock on the date of grant.  Stock
options will be exercisable for such period as specified by the Committee in
the applicable Award Agreement, but in no event may options be exercisable for
a period of more than ten years after their date of grant.  The option price of each Share as to which a
stock option is exercised must be paid in full at the time of exercise.  The Committee may, in its discretion, provide
in any Award Agreement for a stock option that payment of the 

 

 

5

 

option price may
be made in cash, by tender of Shares owned by the Participant valued at Fair
Market Value as of the date of exercise, subject to such guidelines for the
tender of Shares as the Committee may establish, in such other consideration as
the Committee deems appropriate, or a combination of cash, shares of Common
Stock, and such other consideration.  The
number of Shares subject to options and stock appreciation rights granted under
the Plan to any individual Participant during any one calendar year may not
exceed 600,000 Shares. Except for adjustments in price pursuant to Article 12
hereof, at no time shall the option price of a stock option granted hereunder
be subsequently repriced during the period of its exercisability.

 

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

 

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

 

ARTICLE
8.  STOCK APPRECIATION RIGHTS

 

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

 

ARTICLE
9.  PERFORMANCE SHARES

 

                9.1           General. 
Performance shares may be granted in the form of actual Shares or Share
units having a value equal to Shares.  An
Award of performance shares will be granted to a Participant subject to such
terms and conditions set forth in the Award Agreement as the Committee deems
appropriate, including, without limitation, the condition that the performance
shares or a portion thereof will Vest only in the event specified performance
goals are met within a specified performance period, as set forth in the Award
Agreement.  An Award Agreement for a
performance share 

 

 

6

 

Award may also, in
addition to specifying performance goals, condition Vesting of such Award on
continued employment for a period specified in the Award Agreement.  In the event that a stock certificate is
issued in respect of performance shares, the certificate will be registered in
the name of the Participant but will be held by Corporation until the time the
performance shares become Vested.  The
performance conditions and the length of the performance period will be
determined by the Committee.  The
Committee may, in its discretion, reduce or eliminate the Vesting of
performance shares if, in the Committee’s judgment, it determines that the
Vesting of the performance share Award is not appropriate given actual
performance over the applicable performance period.  The maximum number of Shares issuable to any
individual Participant with respect to performance share Awards during any one
calendar year may not exceed 100,000 Shares. 
The Committee, in its sole discretion, may provide in an Award Agreement
whether performance shares granted in the form of share units will be paid in
cash, shares, or a combination of cash and shares.

 

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

 

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

 

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

 

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

 

ARTICLE 10.  RESTRICTED STOCK

 

Restricted stock may be granted in the form of actual
Shares, Share units having a value equal to Shares, or other rights to receive
Shares in the future.  A restricted stock
Award will be subject to such terms and conditions set forth in the Award
Agreement as the Committee deems appropriate, including, without limitation,
restrictions on the sale, assignment, transfer, or other disposition of such
restricted stock and provisions that such restricted stock, stock units or
other rights to receive 

 

 

7

 

Shares be forfeited upon termination of the
Participant’s employment for specified reasons within a specified period of
time or upon other conditions, as set forth in the Award Agreement.  The Award Agreement for a restricted stock
Award may also, in addition to conditioning Vesting of the Award on continued
employment, further condition Vesting on attainment of performance goals.  In the event that a stock certificate is
issued in respect of restricted stock, such certificate will be registered in
the name of the Participant but will be held by the Corporation until the end
of the restricted period. The employment conditions and the length of the
period for vesting of restricted stock Awards will be established by the
Committee at the time of grant and set forth in the Award Agreement.  The Committee, in its sole discretion, may
provide in an Award Agreement whether restricted stock granted in the form of
Share units will be paid in cash, Shares, or a combination of cash and Shares.

 

ARTICLE 11. 
OTHER STOCK-BASED AND COMBINATION AWARDS

 

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

 

ARTICLE
12.  ADJUSTMENTS UPON CERTAIN CHANGES IN
CAPITALIZATION

 

                In the event of a stock split (including
a reverse stock split), a stock dividend or an Extraordinary Distribution
affecting Corporation’s Common Stock, the Committee will adjust,
proportionally, the number and kind of Shares or other securities issued or
reserved for issuance pursuant to the Plan, the limits on Awards to
Participants, and all outstanding Awards to reflect the effect of such stock
split, stock dividend or Extraordinary Distribution.

 

                In the event of any merger or consolidation,
separation (including a spin off), reorganization (whether or not such
reorganization comes within the definition of such term in Section 368 of
the Code), partial or complete liquidation, or other change in capitalization
affecting the Common Stock not specifically addressed above, the Committee may make such substitution
or adjustment, if any, that it deems to be equitable as to the number and kind
of Shares or other securities issued or reserved for issuance pursuant to the
Plan, to the limits on Awards to Participants, and to outstanding Awards to
reflect the effect of such event.

 

 

 

8

 

ARTICLE
13.  AMENDMENT AND TERMINATION

 

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

 

ARTICLE
14.  MISCELLANEOUS

 

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

 

                14.2         Securities Law Restrictions.  No Shares will be issued under the Plan
unless counsel for Corporation is satisfied that such issuance will be in
compliance with applicable federal and state securities laws.  Certificates for Shares delivered under the
Plan may be subject to such stop-transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Common Stock is then listed, and any applicable federal or state
securities law.  The Committee may cause
a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

 

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

 

ARTICLE
15.  STOCKHOLDER APPROVAL

 

                The Plan was approved by
Corporation’s stockholders at its 1997 annual meeting of stockholders, and
amendments to the Plan were approved by Corporation’s stockholders at its 2002
annual meeting of stockholders.  The
amendment to Section 4.3 of the Plan to increase the number of Shares
available for issuance under the Plan from 10,000,000 to 15,000,000 and the
amendments to Section 4.3 and Article 10 of the Plan to increase the
maximum total number of Shares that may be made subject to Awards other than
Awards of stock options and stock appreciation rights under the Plan 

 

 

9

 

to 4,500,000 were
approved by Corporation’s stockholders at the May 3, 2004, annual meeting
of Corporation’s stockholders.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10Exhibit 10.11(c)

 

AWARD AGREEMENT
AND STOCK POWER

Under the

Louisiana-Pacific
Corporation

1997
Incentive Stock Award Plan

 

RESTRICTED
STOCK

 

	
  Corporation:

  	
   

  	
  Louisiana-Pacific
  Corporation

  
	
   

  	
   

  	
  414 Union Street

  
	
   

  	
   

  	
  Suite 2000

  
	
   

  	
   

  	
  Nashville,
  Tennessee 37219

  
	
   

  	
   

  	
   

  
	
  Participant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
                ,
  200   

  
	
   

  	
   

  	
   

  
	
  Award:

  	
   

  	
  The
  Award of Restricted Stock granted pursuant to this Award Agreement

  
	
   

  	
   

  	
   

  
	
  Restricted
  Stock:

  	
   

  	
                  Shares
  of Corporation’s Common Stock subject to the Restrictions set forth in this
  Award Agreement

  
	
   

  	
   

  	
   

  
	
  Plan:

  	
   

  	
  The
  Louisiana-Pacific Corporation 1997 Incentive Stock Award Plan, as amended

  
	
   

  	
   

  	
   

  
	
  Restriction
  Period:

  	
   

  	
  The three-year
  period ending on the third anniversary of the Grant Date, or at such earlier
  date as specified in Appendix A to this Award Agreement.

  

 

AGREEMENT

 

Corporation and Participant agree as follows:

 

1.             Defined Terms. 
Capitalized terms not otherwise defined in this Award Agreement have the
meanings given them in Section 9 of Appendix A to this Award Agreement.

 

2.             Grant of Restricted Stock. 
Subject to the terms and conditions of the Plan and this Award
Agreement, including Appendix A, effective as of the Grant Date, Corporation
grants to Participant an Award for the number of shares of Restricted Stock
specified above.

 

 

3.             Restrictions. 
Participant acknowledges that the Restricted Stock is subject to the
Restrictions and all the terms and conditions set forth in this Award
Agreement.

 

4.             Federal Tax Elections. 
Participant agrees to notify Corporation promptly if Participant makes
an election under Code Section 83(b) with respect to the Restricted
Stock.

 

5.             Certificate. 
Participant agrees that the Certificate for the Restricted Stock,
together with an executed counterpart of this Award Agreement and Stock Power,
will be held by Corporation until the expiration of the Restricted Stock Period
with respect to this Award.

 

STOCK POWER

 

Effective as of the Grant Date, Participant assigns
and transfers to Corporation the shares of Restricted Stock evidenced by the
Certificate and appoints                                             
as attorney-in-fact to transfer the stock on the books of Corporation, with
full power of substitution.  Although
Participant is the owner of the Restricted Stock, Corporation will hold the
Certificate and this Stock Power during the Restriction Period described in the
Award Agreement.  Upon expiration of the
Restriction Period, Corporation will return this Stock Power to Participant,
together with a new, unrestricted, certificate for the Restricted Stock.

 

	
  Corporation:

  	
  LOUISIANA-PACIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Its

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Participant:

  	
   

  

 

 

APPENDIX A

To

Award
Agreement and Stock Power for

Restricted
Stock

 

This
Award Agreement evidences the grant of an Award for shares of Restricted Stock
to Participant under the Plan.

 

Capitalized
terms are defined in Section 9 of this Appendix A.

 

1.             Shares
of Restricted Stock; Adjustment

 

In the event of (a) a
stock dividend or a stock split or reverse stock split (whether effected as a
dividend or otherwise) or (b) an Extraordinary Distribution by
Corporation, where the record date for such stock dividend, stock split, or
Extraordinary Distribution is after the Grant Date and during the Restriction
Period, the Committee will, to the extent provided in Article 12 of the
Plan as it may be amended from time to time, adjust the number of shares of
Restricted Stock proportionately to reflect the effect of such stock dividend,
stock split or Extraordinary Distribution.  The number of shares of Restricted Stock will
not be adjusted to reflect cash dividends paid with respect to Corporation’s
common stock during the Restriction Period.

 

2.             Terms
of Award

 

This Award is subject to
all the provisions of the Plan and to the following terms and conditions:

 

2.1           Restricted
Stock.  Subject to the Restrictions set forth in this
Section, Corporation has granted the Restricted Stock to Participant as of the
Grant Date.

 

2.1.1        Restrictions
During Restriction Period.  During the Restriction Period:

 

(a)           Nontransferable.  Participant may not sell, assign, pledge, or
otherwise transfer or encumber the Award or the Restricted Stock subject to the
Award.  Neither this Award nor the shares
of Restricted Stock is transferable other than by will or the laws of descent
and distribution.  No assignment or
transfer of the Award or the Restricted Stock in violation of the foregoing
restriction, whether voluntary, involuntary or by operation of law or
otherwise, except by will or the laws of descent and distribution, will vest in
the assignee or transferee any interest or right whatsoever, but immediately
upon any attempt to assign or transfer the Award or the Restricted Stock, the
Award will terminate and be of no force or effect.  Whenever the word “Participant” is used in
any provision of this Award Agreement under circumstances where the provision
should logically be construed to apply to the executor, administrator, or the
person or persons to whom this Award or the Restricted Stock may be transferred
by will or by the laws of descent and distribution, it will be deemed to
include such person or persons.

 

1

 

(b)           Forfeiture.  In the event Participant ceases to be an
Employee of an Employer prior to the expiration of the Restriction Period,
Participant will immediately and automatically forfeit all shares of Restricted
Stock subject to the Award, the Restricted Stock will automatically revert to
Corporation, and Participant will cease to have any rights as a stockholder
with respect to such Restricted Stock.

 

2.1.2        Rights
During Restriction Period.  During the Restriction Period, Participant
will have (except as expressly provided in Section 2.1.1) all the rights
of a stockholder with respect to the Restricted Stock, including without limitation
the right to exercise all voting rights with respect to the Restricted Stock
and the right to receive cash dividends with respect to the Restricted
Stock.  Stock dividends issued with
respect to Restricted Stock will be treated as additional shares of Restricted
Stock covered by the Award and will be subject to the same Restrictions.

 

2.1.3        Stock
Certificates.  Certificates for shares of Restricted Stock
subject to this Award Agreement will be issued in Participant’s name and
held by Corporation, together with an executed counterpart of the Award
Agreement and Stock Power, until the Restrictions lapse at the expiration
of the Restriction Period or until the Restricted Stock is forfeited as
provided in Section 2.1.1(b). During the Restriction Period, each
certificate for shares of Restricted Stock will bear a legend in substantially
the following form:

 

THE
SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED AS RESTRICTED STOCK UNDER THE
LOUISIANA-PACIFIC CORPORATION 1997 INCENTIVE STOCK AWARD PLAN (THE “PLAN”) AND
ARE SUBJECT TO RESTRICTIONS ON THEIR TRANSFER, DISPOSITION, OR ENCUMBRANCE SET
FORTH IN THE PLAN.  A COPY OF THE PLAN MAY BE
OBTAINED FROM LOUISIANA-PACIFIC CORPORATION.

 

Certificates for shares of Restricted Stock may also bear any other
restrictive legends required by law or any other agreement.

 

2.2           Settlement
of Award.

 

2.2.1        General.  Upon the Vesting of shares of Restricted
Stock under this Award due to expiration of the Restriction Period, this Award
will be settled on a settlement date selected by the Committee as soon as
practicable after the end of the Restriction Period by the delivery to
Participant of a new stock certificate for the Vested shares of stock subject
to the Award issued in Participant’s name, without the legend described in Section 2.1.3,
together with the Restricted Stock Award Agreement and Stock Power previously
held by Corporation.

 

2.2.2        Lapse
of Restrictions.  Upon settlement of the Award pursuant to Section 2.2.1,
the stock subject to the Award will no longer be subject to the Restrictions.

 

2

 

2.3           Employment
Requirement; Accelerated Vesting.

 

2.3.1        General.  Except as otherwise expressly provided in
Sections 2.3.2 or 2.3.3, if Participant ceases to be an Employee for any
reason prior to the end of the Restriction Period, this Award will be canceled
and Participant will forfeit the Restricted Stock as provided in Section 2.1.1(b) and
this Award will be cancelled and Participant will not receive any other payment
with respect to this Award.

 

2.3.2        Death
or Disability.  In the event Participant dies or terminates
Employment by reason of Disability prior to the end of the Restriction Period,
the Award and the Restricted Stock will automatically become 100% Vested as of
the date of death or termination by reason of Disability.

 

2.3.3        Change
in Control.  Upon the occurrence of a Change in Control
Date prior to the end of the Restriction Period, the Award and the Restricted
Stock will automatically become 100% Vested as of the Change in Control Date

 

2.4           Other
Documents. Participant will be
required to furnish Corporation such other documents or representations as
Corporation may require to assure compliance with applicable laws and
regulations as a condition of Corporation’s obligation to settle this Award.

 

2.5           Transferability.  The Restricted Stock is subject to the
restrictions on transferability set forth in Section 2.1.1(a).  This Award is not transferable other than by
will or the laws of descent and distribution. 
No assignment or transfer of the Award in violation of the foregoing
restriction, whether voluntary, involuntary or by operation of law or
otherwise, except by will or the laws of descent and distribution, will vest in
the assignee or transferee any interest or right whatsoever, but immediately
upon any attempt to assign or transfer the Award, the Award will terminate and
be of no force or effect.  Whenever the
word “Participant” is used in any provision of this Agreement under
circumstances where the provision should logically be construed to apply to the
executor, administrator, or the person or persons to whom this Award may be
transferred by will or by the laws of descent and distribution, it will be
deemed to include such person or persons.

 

3.             Rights
as Stockholder

 

During the Restriction Period, Participant will have
the rights of a stockholder as provided in Section 2.1.2.

 

4.             Taxes;
Tax Election

 

4.1           Withholding
Taxes.

 

4.1.1        General.  Participant acknowledges that Participant is
responsible for payment of all federal, state, and local withholding taxes and
Participant’s portion of all applicable payroll taxes imposed in connection
with (i) the grant of the Award and the Restricted Stock, (ii) the
Vesting of the Restricted Stock, (iii) an election by Participant 

 

3

 

under Code Section 83(b) with
respect to this Award, and/or (iv) payment by Corporation of dividends
with respect to the Restricted Stock during the Restriction Period
(collectively, the “Applicable Taxes”). 
Corporation’s obligation to issue unrestricted stock in settlement of
the Award is expressly conditioned on Participant’s making arrangements
satisfactory to Corporation, in its sole and absolute discretion, for the
payment of all Applicable Taxes.

 

4.1.2        Method
of Payment.  Participant may pay to Corporation (in cash
or by check) an amount equal to the Applicable Taxes.  In the event that Participant does not submit
payment of the entire amount of Applicable Taxes, Participant expressly
authorizes Corporation, in its sole and absolute discretion, (a) to
withhold all or a portion of the remaining balance of the Applicable Taxes from
other amounts payable in cash (as compensation or otherwise) by Corporation or
any Employer to Participant, and/or (b) to withhold a number of
unrestricted shares (thus reducing the number of unrestricted shares to be
issued to Participant) having a fair market value (as of the date the Award is
settled) equal to the remaining balance of the Applicable Taxes.

 

4.2           Effect
of Tax Election.  In the event Participant makes a timely
election under Code Section 83(b) with respect to this Award, the
Restricted Stock will be deemed (for income tax purposes) to be transferred to
Participant effective as of the Grant Date (and any obligation for withholding
tax liability imposed by subsequent changes in tax laws would be due as of the
Grant Date).  However, such an election
will not affect the Restrictions or terminate the Restriction Period for the
Award.

 

5.             Conditions
Precedent

 

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

 

6.             Successorship

 

Subject
to restrictions on transferability set forth in Sections 2.1.1(a) and
2.5, this Award Agreement will be binding upon and benefit the parties, their
successors and assigns.

 

7.             Notices

 

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

 

4

 

8.             Arbitration

 

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

 

9.             Defined
Terms

 

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

 

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

 

Change in Control of Corporation means:

 

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

 

(b)           During any period of 12 consecutive calendar months,
individuals who at the beginning of such period constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual who becomes a director during the period
whose election, or nomination for election, by Corporation’s stockholders was
approved by a vote of at least a majority of the directors then constituting
the Incumbent Board will be considered as though such individual were a member
of the Incumbent Board, but excluding, for this purpose, any such individual
whose 

 

5

 

initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

 

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

 

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

 

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

 

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

 

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

 

6

 

Employer means Corporation or a Subsidiary of
Corporation.

 

Restricted
Stock means the
number of shares of Restricted Stock issuable to Participant pursuant to this
Award as specified on the cover sheet to this Award Agreement.

 

Restriction Period means the period commencing on the Grant Date for the
Award and ending on the first to occur of:

 

(a)           The expiration of the period specified on the cover page to
this Award Agreement;

 

(b)           The termination of Participant’s employment with an
Employer by reason of:

 

(i)            Death; or

 

(ii)           Disability;

 

(c)           A Change in Control of Corporation.

 

Restrictions mean the provisions of Section 2.1 that govern
the forfeiture of the Award and the shares of Restricted Stock during the
Restriction Period.

 

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

 

Vest or Vesting means,
with respect to this Award, the time when the Participant’s Restricted Stock is
no longer subject to forfeiture under Section 2.1.1(b).

 

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

 

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

 

7

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