L-P
Louisiana-Pacific Corporation
111 S.W. Fifth Avenue
Portland, Oregon 97204
503/221-0800
503/796-0204 FAX
July 16, 1997
Mr. Curt Stevens
13930 SW Tennessee Lane
Beaverton, Oregon 97008
Dear Curt,
I am very pleased to offer you the position of Chief Financial Officer. This
offer is extended on the assurance that you are not entered into any employment
contracts which may prevent you from working at Louisiana-Pacific and that you
are eligible to work in the United States as regulated by Federal Immigration
Laws. You will begin work in the Portland office on August 1, 1997 and report
directly to me.
In this position, your responsibilities will include the following.
- - Directs the activities of 16 staff in the Regional Controller, Business
Financial Analyst, Corporate Accounting and Finance staff functions,
including six regional Controllers, Director of Taxes, Credit Manager, Risk
Manager, four Financial Analysts and Corporate Accounting and Finance
personnel.
- - Directs organization-wide formal budget process to include four levels: 1)
five-year strategic plan, 2) annual budgeting, 3) quarterly budgeting and
4) monthly budgeting activities.
- - Together with other top management, determines, mission, direction, goals
and objectives of assigned areas and ensures implementation of strategic
and operating plans. Directs the development of short and long range plans
and budgets. Develops metrics and goal setting process for the financial
function.
- - Establishes capital needs for the corporation and ensures ongoing financial
support for Louisiana-Pacific by determining appropriate sources such as
liquidity, long term planning for capital, and banking relationships
(commercial and investment banks).
- - Sets financial policies, reporting mechanisms from the field and standard
controls for internal and external financial activity. Responsible for all
disclosures, shareholder disclosures and government filings.
- - Reviews and analyzes opportunities for acquisitions and dispositions of
properties.
Mr. Curt Stevens
July 16, 1997
Page 2
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- - Communicates the company's business objectives to the investment community,
and works closely with the retail and wholesale investors and rating
agencies.
- - Determines overall corporate stance on risk tolerance policies, what to
insure inside or outside.
- - Works closely with outside insurance brokers.
- - Also works closely and proactively with board members, and responsible for
all financial reporting presentations at board meetings.
This position will include the following compensation package:
A. An annual base salary of $210,000.
B. A first year bonus in the 40% to 50% range, with a guaranteed amount of
$84,000.
C. A four-year relative total shareholder return plan. The program grants
annual contingent awards of stock that have the potential to pay out at
the end of a four-year performance cycle.
D. A stock option award of 36,000 shares that will vest over three years,
(12,000 each on 8/1/98, 8/1/99 and 8/1/2000 with a life of five years.
E. A Supplemental Executive Retirement Plan (SERP). The SERP is designed to
provide a competitive level target retirement benefit to the senior
management group.
F. A severance package that in the event of a change of control during your
first two years of employment, you will have the option of electing two
years salary plus bonus. If you choose to remain with the successor
company, two months after the change of control, this severance package
option is revoked.
G. A vacation allowance of four weeks per year.
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Mr. Curt Stevens
July 16, 1997
Page 3
As an Officer of Louisiana-Pacific, you will be eligible to participate in all
salaried employee benefit programs: Health Care Coverage, Life and Accidental
Death & Dismemberment Insurance, Long Term Disability coverage, Personal
Accident Insurance, Employee Stock Ownership Trust, and Employee Stock Purchase
Plans. Please refer to the accompanying L-P Benefits Summary for more
information about the company benefit programs.
If you decide to accept this position and have questions regarding any of the
L-P benefits, please call Dennis Christen in the Human Resources Department,
Portland office at 221-0800.
I hope you will find this offer acceptable as we look forward to having you as
the Chief Financial Officer at Louisiana-Pacific.
Sincerely,
/s/ Mark A. Suwyn /s/ Curt Stevens
Mark A. Suwyn Accepted: ------------------
Chairman and CEO Curt Stevens
Enclosures
cc: Mike Tull-Portland