With Ladd not seeing any action, and only middling players in front of him on the depth chart, you have to think Lou is letting him hang around for the experience and one last run.
If I had to guess, Lou will let Ladd know (if he hasn't already) that he has zero chance to play for the Isles again, given his unreliability and the litany of injuries that have depleted his skating and skill.
Lou probably tries to shop him around in the offseason, as a courtesy to Ladd if he still wants to play, but it is unlikely that they will find a palatable deal. Especially not in a flat-cap world.
From there I assume Lou encourages Ladd to go to LTIR and collect his money in full, while at home with his family, fishing or perhaps he can take on a role with the Isles if he wants to settle down here or Lou recommends him for another hockey role with a team or college.
Otherwise he will be banished to the AHL and ride the buses until the Isles find another way to get out from under his contract. All things being equal, I can't see how he doesn't opt to go home or start the next phase of his post-hockey life.
With all of Ladd's injuries, it should be fairly easy to get the doctor's to sign off on LTIR with a failed physical.