### Exhibit 10.2   	Alcan Total Shareholder Return Performance Plan, dated September 20, 2006,	as amended.

** **

**Alcan Inc.**

 

 

 

 

 

 

 

ALCAN

LONG-TERM 

INCENTIVE PROGRAM

 

•  TSR Performance Plan

 

 

Plan Text

 

 

 

 

**Montreal, Canada**

****1

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# 1.                 General Information

The Alcan Long-Term Incentive Program iscomprised of two separate plans. The first plan is the Alcan Total ShareholderReturn Performance Plan and the second plan is Alcan Restricted Share Unit Plan.

Following is the description of the Alcan Total Shareholder Return PerformancePlan. 

 

# 2.                 Definitions

In this Plan, the following definitions shallhave the following meanings:

"**Alcan LTIP**" means the Alcan Long-TermIncentive Program which includes the Alcan Restricted Share Unit Plan and theAlcan Total Shareholder Return Performance Plan;

"**Auditors**" means PricewaterhouseCoopersLLP or any successor company;

"**Award**" means an earned Award to a KeyEmployee in accordance with the provisions of the Plan;

"**Award Agreement**" means the writtenagreement evidencing an Award granted to a Key Employee under the Plan andapproved by the Committee;

"**Board**" means the Board of Directors ofthe Company;

"**Closing Prices**" means the closing saleprices for record lots for common shares as reported on the New York StockExchange - Consolidating Trading;

"**Committee**" means the Human ResourcesCommittee of the Board;

"**Company**" means Alcan Inc. and anysuccessor corporation whether by amalgamation, merger or otherwise;

**"Deferred Share Unit"**or **"DSU"** means a deferred share unit granted under the EDSUP;

"**Disability**" means the completepermanent inability of a Key Employee to perform all of his duties under theterms of his employment with the Company, as determined by the Committee uponthe basis of such evidence, including independent medical reports and data asthe Committee deems appropriate or necessary;

**"Election"**means the irrevocable election in writing made by a Participant to cancel someor all of an Award of a Participant at the end of a Performance Period inexchange for the right to receive an equity-related investment in the Company;

**"Executive Deferred Share Unit Plan"**or **"EDSUP"** means the Alcan Deferred Share Unit Plan for Executives whoare fiscal residents of Canada, as amended by the Board from time to time;

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"**Key Employee**" means an employee of theCompany or a Subsidiary whose responsibilities and decisions, in the judgementof the Committee, directly affect the performance of the Company and itsSubsidiaries and has been designated by the Committee as eligible to participatein the Plan;

"**Participant**" means an employee of theCompany who is a Key Employee and who has received an Award under the Plan;

"**Performance Period**" means the periodover which performance for the purposes of an Award shall be measured;

"**Plan**" means the Alcan TotalShareholder Return Performance Plan;

"**Retirement**" means, inaccordance with the best interests of the Participant:i) retirement in accordance with theprovisions of those employee benefit plans of the Company or any Subsidiarycovering the Participant at the time of retirement or at any time during whichthe Participant received a Target Cash Award which has not attained the end ofthe Performance Period, or ii) the placing of a terminated Participant onnon-active payroll of the Company or any Subsidiary to permit such Participantto attain retirement age as defined in such employee benefit plans, or iii) thedeparture of the Participant from the service of the Company or any Subsidiaryfor a reason other than Cause, who at the time of the Participant's terminationof his employment contract, has attained A) the retirement age provided in theParticipant's employment contract, or B) the age of 55 and where the sum of theParticipant's age and continuous years of service with the Company or anySubsidiary amounts to at least 65 years. For the purpose of this definition,Retirement includes the concept of early retirement.

"**Share**" means a common share of theCompany;

"**Subsidiary**" means a companycontrolled, directly or indirectly, by Alcan;

"**Target Cash Award**" means a target cashaward granted to a Key Employee in accordance with the provisions of the Planand approved by the Committee;

"**TSR**" means the Total ShareholderReturn, which is a financial measure as described in section 6.4;

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# 3.                 Establishment and Purpose

| 3.1    | *Establishment.* The Company has established an incentivecompensation plan known as the Alcan TSR Performance Plan. In an effort toincrease the Key Employee's awareness of their role in improving shareholdervalue, the Committee has approved an executive total compensation plan thatrecognizes that long-term incentives are an integral part of the executive'scompensation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    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| 3.2    | *Purpose.* The purpose of the Plan is to promote the achievement oflong-term objectives of the Company i) by tying the Key Employee's long-termincentive opportunities to pre-established goals; ii) by rewarding performance,based on the successful achievement of the pre-established goals; and iii) byattracting, retaining and motivating highly competent Key Employees committed asa group to achieve results through teamwork.
 
4.                 Administration		4.1The Plan		shall be administered by the Committee. The Committee shall have full		and complete authority to interpret the Plan and prescribe such rules		and regulations and make such other determinations as it deems necessary		or desirable for the administration of the Plan.  4.2
*Amendment, Modification and Termination.* The Committee may at anytime and from time to time amend, suspend or terminate the Plan in whole or inpart.   4.3*Costs of the Plan.* All expenses associated with the establishment,maintenance and termination of the Plan shall be borne by the Company.   4.4
*Tax Consequences.* The Awards shall be subject to taxes as per theincome tax rules of the Key Employee's country of residence. Participants areencouraged to inform themselves of their particular tax situation. All taxesshall be paid by the Participant.  4.5*Successors.* All obligations of the Company under the Plan shall bebinding on any successor to the Company.
 
5.                 Eligibility
*Eligibility.*The Planprovides for the granting of a Target Cash Award to designated Key Employees ofthe Company and its Subsidiaries.  The Committee shall determine at its solediscretion which Key Employees of the Company shall be eligible to be granted aTSR performance Target Cash Award.  It shall also determine the conditions(amount, period) applicable to each Award.

Eligibility to participate in the Plan doesnot confer a right to receive a Target Cash Award. There is no automaticentitlement to any grant.

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 6.                 Awards6.1
*Target Cash Award.* The target amount of the Key Employee's TargetCash Award shall be determined through competitive market data using appropriatepeer companies. The Committee shall approve annually the target long-termincentive compensation amount to be attributed to Key Employees. Half of thisamount shall be delivered through the Plan and the other half through the AlcanRestricted Share Unit Plan. Employees eligible for participation in the Alcan LTIP but not eligible to participate in this Plan shall receive their long-termcompensation amount entirely through the Alcan Restricted Share Unit Plan.  6.2
*Amount of the Award.* The amount of the Award, if any, shall bebased on the Company's TSR performance at the end of the Performance Period asmeasured against the TSR performance of the S&P Materials Index.  6.3
*Award Frequency and Performance Period.* Subject to the terms ofthe Plan (including sections 4.1, 4.2 and 5.1), Target Cash Awards shallgenerally be granted annually by the Committee, with each Target Cash Awardhaving a Performance Period of 3 years.  6.4
*Total Shareholder Return and Performance Measure.* TSR shall bemeasured as a change in the market price of the common stock plus cumulativedividend yield over the Performance Period.

At the end of the Performance Period, the TSRperformance measurement shall be made for all companies in the S&P MaterialsIndex and the Company's performance will be ranked relative to the otherindustrial companies in the Index as of the end of the Performance Period. These measurements will be made by a third party and audited by the Company'sAuditors.  6.5
*Calculation of TSR Performance.*  The percentage change in stockprice is equal to the ratio of (A) the average of the Closing Prices over the 21trading days immediately preceding the end of the Performance Period over (B)the average of the Closing Prices over the 21 trading days immediately precedingthe commencement of the Performance Period.

Only companies that have been part of theIndex for the full Performance Period shall be included in the calculation ofTSR performance.  6.6
*Payout Matrix.* In order for any payout to be earned, the Company'sTSR performance shall be at or above the 30th percentile rank of thecompanies ranked in the S&P Materials Index.  At the 30th percentilerank, an Award payout of 60% of the Target Cash Award shall be earned.  At the50th percentile rank, an Award payout of 100% of Target Cash Awardshall be earned, and at the 75th percentile rank, an Award payout of250% of the Target Cash Award shall be earned (maximum payout). The Award payoutwill be prorated between these rankings (see sample calculation at Appendix A).
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 6.7
*Individual Performance.* As with other elements of compensation, anAward shall be earned through individual performance.  There shall be noentitlement to an Award.  The actual target Award may also be subject to anupward or downward adjustment based on the individual's performance andcontribution to the Company.  6.8
*Payment of Awards.*Subject to applicable law,**payment withrespect to earned Awards may be made in whole or in part in the form of cashand/or Shares of the Company, at the sole discretion of the Committee.  6.9
*Award Agreement.*A separate Agreement shall be entered intobetween the Company and the Participant to cover each Target Cash Award.  Thisdocument shall be sent in duplicate to each Participant for signature.  Itdescribes the conditions applying to that particular Award (see Appendix B).		
* *
7.                 Election7.1
The Committee shall have the authority to allow Canadian Participants whofile an Election in accordance with the EDSUP to exchange, subject to Section7.3, some or all of the Award into DSUs and to receive further DSUs as a Companyincentive to encourage the Participants to commit to an equity‐relatedinvestment in the Company.

The Committee shall also have the authorityto establish an alternative equity‐related investment in the Company, ifpermitted by law, that will allow Participants located in countries other thanCanada to file an Election to exchange, subject to Section 7.3, some or all ofthe Award into such equity-related investment in the Company and receive aCompany incentive to encourage the Participants to commit to such exchange.These Participants shall refer to the Appendices  to this Plan that may beadopted from time to time for a description of the equity-related investments inthe Company available to them according to their countries of residence.   7.2
To be effective in respect of a Target Cash Award, an Election must befiled by the Participant with the Company prior to the end of the PerformancePeriod of such Target Cash Award, as required by applicable law and as specifiedin the Award, and may cover some or all of the Award. Once filed, an Electioncannot be revoked by the Participant.  7.3
If a Participant files an Election, provided that the Participant has notincurred a termination of employment on or before the end of the PerformancePeriod, the Award specified in the Election will be cancelled and theParticipant will receive the equivalent value of the Award either in DSUstogether with such further DSUs or in another equity-related investment in theCompany together with a Company incentive that may have been determined to beavailable by the Committee in accordance with Section 7.1. DSUs will be grantedunder the EDSUP and will be subject to the terms of the EDSUP governing DSUs.
6

 
 If a Participant does not file an Election,the Award will be paid to the Participant in accordance with Section 6.8.  7.4
The exchange of the Award intoDSUs at the end of the Performance Period may not to be offered to Participantslocated in countries other than Canada due to tax laws, securities regulationsor other rules. Appendices may be added from time to time to provide adescription of the equity-related investments in the Company made available tosuch Participants. These Appendices are an integral part of the Plan onceapproved by the Committee.
 
8.                 Termination of Employment** **8.1
*Termination of Employment Due to Death, Disability or Retirement.*In the event of termination of employment due to Retirement (in accordance withthe retirement programs rules), Disability or death, the Participant will beentitled to a pro-rata payment of any Awards earned, payable at the timenormally due and in accordance with such rules and regulations as may be adoptedby the Committee.  8.2
*Termination for Reasons Other than Death, Disability or Retirement.*Termination of employment for any other reasons, including resignation, willresult in forfeiture of any outstanding Awards under the Plan.  In specificcircumstances, the Committee may adopt rules to provide for partial payment asabove.
 
9.                 Beneficiary Designation** **9.1
*Designation of Beneficiary.* Each Participant shall advise theCompany in a written designation, on a prescribed form, the name of thebeneficiary who shall be entitled to receive a payout, if any, with respect toan Award upon his death (Appendix C). The Participant shall advise the Companyof any change in any such information (see Appendix D).

In the event that thereshall be no designation of beneficiary made, any amounts to be paid to theParticipant's beneficiary shall be paid to the Participant's estate.  9.2
*Death of Beneficiary.*In the event that the beneficiarypredeceases the Participant, any amounts that would have been paid to theParticipant or the Participant's beneficiary under the Plan shall be paid to theParticipant's estate.
 
10.                Miscellaneous Provisions10.1The effective date of the Plan is 1 January 2002 as amended.  10.2The Plan shall be governed and interpreted in accordance with the laws ofthe Province of Quebec and the laws of Canada applicable in Quebec.
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   10.3
If any provision of the Plan is determined to be void or unenforceable inwhole or in part, such determination shall not affect the validity orenforcement of any other provision or part thereof.  10.4Headings are for reference purposes only and do not limit or extend themeaning of the provisions of the Plan.  10.5References to the masculine shall include the feminine; references to thesingular shall include the plural and *vice versa*.
 
11.                Change of Control
11.1
 "Change of Control Event" shall meanany of the following: 
 
 
 
 
1.
the acquisition of direct		or indirect beneficial ownership of 50% or more of the Shares of the Company by any personor group of associated persons acting together or jointly and in concert;
 
2.
any amalgamation, merger, arrangement,reorganization or consolidation (or substantially similar transactions or seriesof transactions) in respect of the Company, other than where (a) the Shares ofthe Company after the transaction would continue to represent two-thirds or moreof the combined voting securities of the resulting entity, without a concurrentsubstantial change in the composition of the Company's Board, or (b) it iseffected for the purpose of implementing a recapitalization of the Company,without there also occurring an acquisition of direct or indirect beneficialownership of 20% or more of the Shares of the Company by any person or group ofassociated persons acting together or jointly and in concert;
 
3.
the approval by the Company'sshareholders of a plan for the complete or effective dissolution of the Company;
 
4.
the issuance by the Company of Shares inconnection with an exchange offer acquisition if such issuance results in theShareholders holding less than two-thirds of the combined voting securities ofthe resulting entity and there is a concurrent substantial change in thecomposition of the Company's Board;
 
5.
the sale of all or substantially all ofthe assets of the Company, other than (a) to an owner or owners of at leasttwo-thirds of the Company's Shares, or (b) in a manner so that the acquirer isthereafter controlled as to at least two-thirds of its voting securities by theowner or owners of at least two-thirds of the Company's Shares, provided in eachcase that there is no concurrent substantial change in the composition of theCompany's Board;  
 
6.
the completion of the corporate approvalsnecessary on the part of the Company to give effect to any amalgamation, merger,arrangement, reorganization, continuance or consolidation (or substantiallysimilar transactions or series of transactions) in respect of the Companypursuant to which the Company will not survive as a stand-alone publicly-tradedcorporation - without limitation the Company shall be deemed not to havesurvived as a stand-alone publicly-traded corporation if (a) there is no longera liquid market for the Shares on the Toronto or New York stock exchanges, (b)more that 50% of the Shares become held by any person or group of associatedpersons acting together or jointly and in concert, or (c) the Company becomes asubsidiary of another corporation; or
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7.
any occurrence pursuant to whichindividuals who were the incumbent Directors on the date of the Plan cease forany reason to constitute at least two-thirds of the Company's Board, providedthat any individual who became a Director subsequently whose election orappointment was approved by at least two-thirds of the incumbent Directors shallalso be considered to be an incumbent Director, but further provided that noindividual elected or appointed initially as a result of an actual or threatenedproxy contest or solicitation of proxies or in connection with amalgamation,merger, arrangement, reorganization, consolidation or share exchange acquisitiontransaction (or substantially similar transactions or series of transactions)shall be deemed to be an incumbent Director.    
For the purposes hereof a substantial changein the composition of the Company's Board shall be any change involving thedeparture of at least three Directors or any other change pursuant to which theDirectors in office prior thereto cease to constitute at least two-thirds of themembers of the Board.  In addition, any "change of control event" which occursfor the purposes of a change of control agreement in force between the Companyand an employee of the Company or one of its subsidiaries as of the date hereofshall be deemed to be a Change of Control Event hereunder in relation to thatemployee.   11.2
Upon the occurrence of a Change ofControl Event, in respect of each Target Cash Award granted to the Participant,the Participant will be entitled to an amount equal to the greater of:     i)100% of the target amount of the TargetCash Award specified in the grant; or    ii)
(A)    		the amount of the Target CashAward calculated in accordance with the provisions of section 6 pro-ratedrelative to the term of the original Performance Period for the period beginningat the start of the term of the original Performance Period to the Change ofControl Event; and   (B)    		100% of the target amount of the TargetCash Award specified in the grant pro-rated relative to the term of the originalPerformance Period for the period beginning at the Change of Control Event tothe end of the term of the original Performance Period.    11.3The amounts owing to the Participantunder section 11.2 hereof shall be payable 30 days following the date of theChange of Control Event.
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**APPENDIX A**

**TSR Rating Scale **

** **
  **EXAMPLE**
 
 Target Award (2006) 
$100,000 Adjustment for personal performance 
$25,000 Adjusted Target Award 
$125,000 3-year performance rating at 62.5percentile
x
175%           
$218,750
                                       

Amount paid in 2009

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**APPENDIX B**

** **

**ALCAN INC. **

**TOTAL SHAREHOLDER RETURN (TSR) PERFORMANCEPLAN**

**(long-term incentive cash award)**

**AWARD AGREEMENT**

 
NAMEAWARD YEAR:  PERFORMANCEPERIOD: TARGET AWARD AMOUNT:
 

You have been granted a 2006 Target Cash Award(shown above) under the TSR Performance Plan.  This Award was approved by theHuman Resources Committee of the Board, effective 20 September 2006 and issubject to a three year Performance Period beginning 1 October 2006 and ending30 September 2009.

The payment value of this Award, if any, willbe calculated on the Total Shareholder Return and Alcan's percentile rankrelative to the Standard and Poor (S&P) Materials Index at the end of thePerformance Period.  Total Shareholder Return is measured as the change in themarket price of the common stock plus cumulative dividend yield over thePerformance Period. The percentage change in stock price is equal to the ratioof (A) the average of the closing share prices over the 21 trading daysimmediately preceding the end of the Performance Period over (B) the average ofthe closing share prices over the 21 trading days immediately preceding thePerformance Period.

At the end of the Performance Period, TSRperformance measurements will be made for Alcan and for all companies in the S&PMaterials Index. Alcan's TSR performance will be compared and ranked against theTSR performance of otherl companies in the Index. Only companies that have beenpart of the Index for the full 3-year period will be included in the Index.

The payout, if any, will be calculated byadjusting the target award by a performance factor related to Alcan's percentilerank relative to the S&P Materials Index as follows:

•        At a relative rank below the 30thpercentile no payout will be made

•        At a relative rank of the 30thpercentile a payout of 60% of the target amount

•        At a relative rank of the 50thpercentile a payout of 100% of the target amount

•        At a relative rank of the 75thpercentile a payout of 250% of the target amount 

          (250% is the maximum payout under theSchedule)

•        The payout will be proratedbetween these rankings.

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You must be continuously and actively employedby Alcan over the performance period to be eligible to receive any payment.  Theactual payment, if any, will be made as soon as practicable following completionof the Performance Period.  If you terminate your employment during thePerformance Period due to retirement, disability or death, your actual Awardwill be pro-rated for the period up to termination; the amount being paid at theprescribed time and according to such Rules and Regulations of the Plan adoptedby the Committee.  

If you are a Canadian Participant, you will beallowed to irrevocably elect to cancel some or all of the Award in exchange forthe right to receive the same value in Deferred Share Units under the ExecutiveDeferred Share Unit Plan. In addition, subject to a favourable tax ruling, you will receive a further 20% of DSUs ofthe Award that you have exchanged. 

If you are a Participant in a country otherthan Canada, you may be allowed to irrevocably elect to cancel some or all ofthe Award in exchange for the right to receive the same value in an alternateequity-related investment in the Company together with an additional 20% of thevalue of the Award that you have exchanged. 

To make an election, eligible Participantsmust notify the Company at least 12 months prior to the end of the PerformancePeriod. Eligibility to participate in the equity-related investments in theCompany will be determined on the basis of your employment as of the date youare required to make the Election. Please refer to the Plan description.

Please indicate your acceptance of the above award, theterms and conditions as described herein and the attachments by executing bothcopies of this Award Agreement and returning one copy to the administrator,Alcan Executive Compensation Department, Maison Alcan, Montreal.

I hereby accept the terms and conditions ofthis award:

 
    Signature Date 
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APPENDIX CALCAN INC.TOTAL SHAREHOLDER RETURNPERFORMANCE PLANBeneficiary Designation Form
I,_______________________________, being a Participant of the Total ShareholderReturn Performance Plan (TSR Performance Plan), hereby designate the followingperson as my Beneficiary for purposes of the TSR Performance Plan andacknowledge that said person is:

 

**Name:**
  
		Address:
   
   
   
  
Under the terms of the TSR Performance Plan, I reservethe right to revoke this designation and to designate another person as myBeneficiary.
 
**Signature:**
  
		Employee Number:
  
		Date:
  
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APPENDIX DALCAN INC.TOTAL SHAREHOLDER RETURNPERFORMANCE PLANChange of Beneficiary Form
I,_______________________________, being a Participant of the Total ShareholderReturn Performance Plan (TSR Performance Plan), hereby revoke the designation of______________________________ as my Beneficiary for purposes of the TSRPerformance Plan and designate instead:

 

**Name:**
  
		Address:
   
   
   
  
Under the terms of the TSR Performance Plan, I reservethe right to revoke this designation and to designate another person as myBeneficiary.

**Signature:**
  
		Employee Number:
  
		Date:
  
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