##### 



Exhibit 10(y)



| | Long-Term
Incentive Plan
| | ------------------------



| | Potash Corporation of
Saskatchewan Inc.
| | ---------------------------------------



| | Effective for the
Performance Cycle
January 1, 2003 to
December 31, 2005
| | ------------------------------------------------------------------------





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##### 



Contents



|                                    |      |   |                                                     |  |  
|----------------------------------- | ---- | - | --------------------------------------------------- |  | -
|Section 1Establishment of the Plan |      | 1
|                                    | 1.01 |   | Purpose                                             |  | 1
|                                    | 1.02 |   | Term                                                |  | 1
|Section 2Definitions               |      | 2
|                                    | 2.01 |   | Award Units                                         |  | 2
|                                    | 2.02 |   | Board                                               |  | 2
|                                    | 2.03 |   | Committee                                           |  | 2
|                                    | 2.04 |   | Corporate TSR                                       |  | 2
|                                    | 2.05 |   | Corporate TSR Award Units                           |  | 2
|                                    | 2.06 |   | Corporation                                         |  | 2
|                                    | 2.07 |   | Effective Date                                      |  | 3
|                                    | 2.08 |   | Entitled Executive                                  |  | 3
|                                    | 2.09 |   | Index                                               |  | 3
|                                    | 2.10 |   | Index Closing Price                                 |  | 3
|                                    | 2.11 |   | Index Dividends                                     |  | 3
|                                    | 2.12 |   | Index Opening Price                                 |  | 3
|                                    | 2.13 |   | Index TSR                                           |  | 4
|                                    | 2.14 |   | Index TSR Award Units                               |  | 4
|                                    | 2.15 |   | Just Cause                                          |  | 4
|                                    | 2.16 |   | PCS Inc. Opening Share Price                        |  | 4
|                                    | 2.17 |   | PCS Inc. Closing Share Price                        |  | 4
|                                    | 2.18 |   | PCS Inc. Dividends                                  |  | 5
|                                    | 2.19 |   | Performance Cycle                                   |  | 5
|                                    | 2.20 |   | Permanent Disability or Permanently Disabled        |  | 5
|                                    | 2.21 |   | Plan                                                |  | 5
|                                    | 2.22 |   | Salary                                              |  | 5
|                                    | 2.23 |   | Target Percentage                                   |  | 5
|                                    | 2.24 |   | Tier Group                                          |  | 5
|                                    | 2.25 |   | Vested Percentage                                   |  | 5
|Section 3Participation             |      | 6
|                                    | 3.01 |   | Initial Participation                               |  | 6
|                                    | 3.02 |   | Continued Participation                             |  | 6
|Section 4Allocation
of Award Units |      | 7
|                                    | 4.01 |   | Allocation                                          |  | 7
|                                    | 4.02 |   | Promotion to New Tier Group or Other Promotion      |  | 7
|                                    | 4.03 |   | Corporate TSR Award Units and Index TSR Award Units |  | 7
|                                    | 4.04 |   | Target Percentage                                   |  | 8
|Section 5Vesting of Award Units    |      | 9
|                                    | 5.01 |   | Vested Percentages                                  |  | 9

i



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##### 



|                                     |      |    |                                         |  |   
|------------------------------------ | ---- | -- | --------------------------------------- |  | --
|Section 6Redemption of Award Units  |      | 10
|                                     | 6.01 |    | Redemption Date                         |  | 10
|                                     | 6.02 |    | Value of Award Units                    |  | 10
|                                     | 6.03 |    | Early Redemption Date                   |  | 11
|Section 7Administration of the Plan |      | 12
|                                     | 7.01 |    | Powers of the Committee                 |  | 12
|                                     | 7.02 |    | Notification to Entitled Executives     |  | 12
|                                     | 7.03 |    | Calculation of Total Shareholder Return |  | 12
|                                     | 7.04 |    | Delegation of Duties                    |  | 12
|Section 8General Provisions         |      | 13
|                                     | 8.01 |    | Assignment or Alienation                |  | 13
|                                     | 8.02 |    | Amendment or Termination                |  | 13
|                                     | 8.03 |    | No Enlargement of Contractual Rights    |  | 13
|                                     | 8.04 |    | Withholding of Taxes                    |  | 13
|                                     | 8.05 |    | Binding on Successors                   |  | 13
|                                     | 8.06 |    | Currency                                |  | 13
|                                     | 8.07 |    | Certain Adjustments                     |  | 14
|                                     | 8.08 |    | Governing Law                           |  | 14

ii



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##### 



Section 1Establishment of the Plan





|1.01 |  | Purpose                                                         
|---- |  | ----------------------------------------------------------------
|     |  | This Long-term Incentive Plan is established for the purpose of:



| | (a) |  | providing competitive compensation for Entitled Executives;                                                                                                                
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | rewarding Entitled Executives for improving Total Shareholder
Return;                                                                                                      
|
| | (c) |  | rewarding Entitled Executives for attaining a Total
Shareholder Return that is equal to or in excess of the increase in
the Dow Jones U.S. Basic Materials Companies Index;
|
| | (d) |  | rewarding Entitled Executives for their efforts and
contributions to the achievement of the long-term success of the
business interests of the Corporation;                
|
| | (e) |  | aligning the interests of Entitled Executives more closely
with the shareholders of the Corporation; and,                                                                  
|
| | (f) |  | enhancing the ability of the Corporation to recruit and
retain high potential, high value executives.                                                                      



|1.02 |  | Term                                                                                                                                            
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Subject to Section 8.02 (Amendment or Termination), this Plan shall be
effective for the Performance Cycle January 1, 2003 to December 31, 2005.

1



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##### 



Section 2Definitions





|2.01 |  | Award Units                                                                                                                                   
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Award Units means, in respect of an Entitled Executive, the units
allocated pursuant to Section 4 (Allocation of Award Units).              
|    
|2.02 |  | Board                                                                                                                                         
|     |  | Board means the Board of Directors of PCS Inc.                                                                                              
|    
|2.03 |  | Committee                                                                                                                                     
|     |  | Committee means the Compensation Committee of the Board.                                                                                    
|    
|2.04 |  | Corporate TSR                                                                                                                                 
|     |  | Corporate TSR means the total shareholder return of PCS Inc. in the
Performance Cycle, expressed as a percentage, and determined as follows:



| | (i)   |  | PCS Inc. Closing Share Price
| | ----- |  | ----------------------------
|
| |       |  | MINUS                       
|
| |       |  | PCS Inc. Opening Share Price
|
| |       |  | PLUS                        
|
| |       |  | PCS Inc. Dividends          
|
| |       |  | DIVIDED BY                  
|
| | (ii)  |  | PCS Inc. Opening Share Price
|
| |       |  | MULTIPLIED BY               
|
| | (iii) |  | 100                         



|2.05 |  | Corporate TSR Award Units                                                                                                                                                                 
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Corporate TSR Award Units means, in respect of an Entitled Executive,
one half of the Award Units allocated to the Entitled Executive pursuant
to Section 4 (Allocation of Award Units).
|    
|2.06 |  | Corporation                                                                                                                                                                               
|     |  | Corporation means Potash Corporation of Saskatchewan Inc. and its
direct and indirect subsidiaries.                                                                                     

2



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##### 





|2.07 |  | Effective Date                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Effective Date means January 1, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    
|2.08 |  | Entitled Executive                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |  | Entitled Executive means an executive employee of the Corporation who
is recommended by the CEO and approved by the Committee to participate in
this Plan.                                                                                                                                                                                                                                                                                                                                                                                                                            
|    
|2.09 |  | Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     |  | Index means the Dow Jones U.S. Basic Materials Companies Index (DJUSBMI).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    
|2.10 |  | Index Closing Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |  | Index Closing Share Price means the average closing value of the Index,
as reported by the Dow Jones Company, for the last 30 days trading days
of the Performance Cycle or, in the case of an Entitled Executive for
whom an early redemption date applies pursuant to paragraph (a) of
Section 6.03 (Early Redemption Date), the above reference to the last 30
trading days of the Performance Cycle shall be substituted by the last
30 trading days up to the date of the Entitled Executives retirement,
disability, death or involuntary termination, as the case may be. 
|    
|2.11 |  | Index Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |  | Index Dividends means a cumulative amount derived from the return on
dividends paid and reinvested by the companies in the Index, during the
Performance Cycle or, in the case of an Entitled Executive for whom an
early redemption date applies pursuant to paragraph (a) of Section 6.03
(Early Redemption Date), a cumulative amount derived from the return on
dividends paid and reinvested by the companies in the Index, during the
Performance Cycle up to the date of the Entitled Executives retirement,
disability, death or involuntary termination, as the case may be.
|    
|2.12 |  | Index Opening Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |  | Index Opening Price means the average closing value of the Index, as
reported by the Dow Jones Company, for the last five trading days of
2002. Such value has been determined as U.S. $136.76.                                                                                                                                                                                                                                                                                                                                                                                       

3



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##### 





|2.13 |  | Index TSR                                                                                                                                  
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Index TSR means the total shareholder return of the Index in the
Performance Cycle, expressed as a percentage, and determined as follows:



| | (i)   |  | Index Closing Price
| | ----- |  | -------------------
|
| |       |  | MINUS              
|
| |       |  | Index Opening Price
|
| |       |  | PLUS               
|
| |       |  | Index Dividends    
|
| |       |  | DIVIDED BY         
|
| | (ii)  |  | Index Opening Price
|
| |       |  | MULTIPLIED BY      
|
| | (iii) |  | 100                



|2.14 |  | Index TSR Award Units                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Index TSR Award Units means, in respect of an Entitled Executive, one
half of the Award Units allocated to the Entitled Executive pursuant to
Section 4 (Allocation of Award Units).                                                                                                                                                                                                                                                                                                                                                                                                                       
|    
|2.15 |  | Just Cause                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     |  | Just Cause has such meaning as determined by the Committee from time to
time, consistent with the regular policies of the Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    
|2.16 |  | PCS Inc. Opening Share Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |  | PCS Inc. Opening Share Price means the average closing price of the
common stock of PCS Inc. as reported on the New York Stock Exchange, for
the last five trading days of 2002. Such price has been determined as
U.S. $63.992.                                                                                                                                                                                                                                                                                                                                                                           
|    
|2.17 |  | PCS Inc. Closing Share Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |  | PCS Inc. Closing Share Price means the average closing price of the
common stock of PCS Inc. as reported on the New York Stock Exchange, for
the last 30 trading days of the Performance Cycle or, in the case of an
Entitled Executive for whom an early redemption date applies pursuant to
paragraph (a) of Section 6.03 (Early Redemption Date), the above
reference to the last 30 trading days of the Performance Cycle shall be
substituted by the last 30 trading days up to the date of the Entitled
Executives retirement, disability, death or involuntary termination, as
the case may be.

4



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##### 





|2.18 |  | PCS Inc. Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | PCS Inc. Dividends means the cumulative amount of dividends paid by PCS
Inc. on a common share of PCS Inc. during the Performance Cycle or, in
the case of an Entitled Executive for whom an early redemption date
applies pursuant to paragraph (a) of Section 6.03 (Early Redemption
Date), the cumulative amount of dividends paid by PCS Inc. on a common
share of PCS Inc. during the Performance Cycle up to the date of the
Entitled Executives retirement, disability, death or involuntary
termination, as the case may be.                                                                                                                                           
|    
|2.19 |  | Performance Cycle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |  | Performance Cycle means January 1, 2003 to December 31, 2005 inclusive.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    
|2.20 |  | Permanent Disability or Permanently Disabled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |  | Permanent Disability or Permanently Disabled means the permanent
incapacity of an Entitled Executive, as determined in accordance with the
disability plan to which the Entitled Executive is eligible to belong.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    
|2.21 |  | Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     |  | Plan means this Long-Term Incentive Plan, as amended from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    
|2.22 |  | Salary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|     |  | Salary means, in respect of an Entitled Executive, the Entitled
Executives annual base salary in effect as the date the Entitled
Executive commenced participation in the Plan. However, if the Entitled
Executive is promoted into a new Tier Group during the Performance Cycle
or if the annual base salary of the Entitled Executive is significantly
adjusted during the Performance Cycle as a result of a promotion,
Salary for purposes of paragraph (b) of Section 4.02 (Promotion to a
New Tier Group or Other Promotion) shall be the annual base salary in
effect as of the date the Entitled Executive was promoted into a new Tier
Group or otherwise promoted.
|    
|2.23 |  | Target Percentage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |  | Target Percentage means the target percentage applicable to an Entitled
Executive according to the Tier Group in which the Entitled Executive
participates, as described in Section 4.04 (Target Percentage).                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|2.24 |  | Tier Group                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |  | Tier Group means, in respect of an Entitled Executive, the Tier Group
in which the Entitled Executive participates, as described in Section
4.04 (Target Percentage).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    
|2.25 |  | Vested Percentage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |  | Vested Percentage means the vested percentage of an Entitled
Executives Corporate TSR Units and Index TSR Units, as the case may be,
as described in Section 5 (Vesting of Award Units).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

5



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##### 



Section 3Participation





|3.01 |  | Initial Participation                                                                                                                                                                                                                                                                                                                                                                              
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Participation in the Plan is limited to Entitled Executives.                                                                                                                                                                                                                                                                                                                                       
|    
|     |  | Each Entitled Executive shall participate in the Plan as of the first day
of the Performance Cycle, or on the date on which the Entitled Executive
becomes an Entitled Executive, if later.                                                                                                                                                                                                        
|    
|3.02 |  | Continued Participation                                                                                                                                                                                                                                                                                                                                                                            
|     |  | Each Entitled Executive shall continue participation in the Plan
throughout the Performance Cycle, or until the Entitled Executives
employment terminates for any reason, the Entitled Executive becomes
Permanently Disabled, or upon the Entitled Executive no longer being
designated as an Entitled Executive as recommended by the CEO and
approved by the Committee, whichever first occurs.

6



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##### 



Section 4Allocation of Award Units





|4.01 |  | Allocation                                                                                                                                                                                                                                   
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Each person who is an Entitled Executive as of the Effective Date or who
becomes an Entitled Executive during the Performance Cycle but after the
Effective Date shall be allocated Award Units. The number of Award Units
shall be equal to:



| | (a) |  | the Entitled Executives Salary as of the Effective Date or
the date the Entitled Executive commences participation in the Plan,
whichever is later                                                                                                        
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     |  | MULTIPLIED BY                                                                                                                                                                                                                                              
|
| | (b) |  | the number of years and completed months (expressed as
fractions of a year, to two decimal places) from the Effective Date
or the date the Entitled Executive commences participation in the
Plan, whichever is later, to the end of the Performance Cycle.
|
| |     |  | MULTIPLIED BY                                                                                                                                                                                                                                              
|
| | (c) |  | the Target Percentage applicable to the Entitled Executive,
as described in Section 4.04 below                                                                                                                                                             
|
| |     |  | DIVIDED BY                                                                                                                                                                                                                                                 
|
| | (d) |  | the PCS Inc. Opening Share Price                                                                                                                                                                                                                           



|4.02 |  | Promotion to New Tier Group or Other Promotion                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | In the event an Entitled Executive is promoted to a new Tier Group during
the Performance Cycle or if the Salary of the Entitled Executive is
significantly adjusted during the Performance Cycle as a result of a
promotion, additional Award Units shall be allocated to the Entitled
Executive reflecting the incremental effect of the Entitled Executives
participation in the new Tier Group or new Salary, as the case may be,
from the date such changes occurred to the end of the Performance Cycle.
|    
|4.03 |  | Corporate TSR Award Units and Index TSR Award Units                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|     |  | One half the Award Units allocated pursuant to Sections 4.01 and 4.02
above shall be Corporate TSR Award Units and one half shall be Index TSR
Award Units.                                                                                                                                                                                                                                                                                                                                                    

7



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##### 





|4.04 |  | Target Percentage                                                                                                                                        
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | The Target Percentage applicable to an Entitled Executive shall be
determined by the Tier Group in which the Entitled Executive
participates, as follows:

|           |     |                                        |  |                                      |  |  |     | 
|---------- | --- | -------------------------------------- |  | ------------------------------------ |  |  | --- | 
|Tier Group |     | Positions                              |  | Target Percentage                   
|           |     |                                        |  |                                     
|           | I   |                                        |  | Corporate President                  |  |  | 70% | 
|           |     | Chief Executive Officer                |  |                                      |  | 
|          
|           | IA  |                                        |  | Chief Operating Officer              |  |  | 45% | 
|          
|           | II  |                                        |  | Corporate Senior Vice-Presidents     |  |  | 40% | 
|           |     | Subsidiary Presidents                  |  |                                      |  | 
|          
|           | III |                                        |  | Corporate Vice-Presidents            |  |  | 30% | 
|           |     | Subsidiary Executive Vice-Presidents   |  |                                      |  | 
|           |     | Selected Subsidiary Vice-Presidents    |  |                                      |  | 
|          
|           | IV  |                                        |  | Selected Subsidiary Vice-Presidents  |  |  | 25% | 
|           |     | Selected Corporate Executive Employees |  |                                      |  | 
|           |     | Selected Operations General Managers   |  |                                      |  | 
|          
|           | V   |                                        |  | Selected Operations General Managers |  |  | 20% | 
|           |     | Selected Subsidiary Vice-Presidents    |  |                                      |  | 
|           |     | Selected Directors                     |  |                                      |  | 

8



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##### 



Section 5Vesting of Award Units





|5.01 |  | Vested Percentages                                                                                                                                                                                                                               
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | The following Vested Percentages shall be used to determine the
redemption of an Entitled Executives Corporate TSR Award Units and Index
TSR Award Units pursuant to paragraphs (a) and (b) respectively of
Section 6.02 (Value of Award Units).



| | (a) |  | Corporate TSR Vested Percentage
| | --- |  | -------------------------------

|              |  |                   |     |  
|------------- |  | ----------------- | --- | -
|              |  | Corporate TSR    
|Corporate TSR |  | Vested Percentage
|              |  |                  
|0% or less    |  |                   | 0   | %
|10%           |  |                   | 50  | %
|20%           |  |                   | 75  | %
|30%           |  |                   | 100 | %
|40%           |  |                   | 125 | %
|50% or more   |  |                   | 150 | %



| | (b) |  | Index TSR Vested Percentage
| | --- |  | ---------------------------

|                |  |                   |     |  
|--------------- |  | ----------------- | --- | -
|Corporate TSR   |  | Index TSR        
|minus Index TSR |  | Vested Percentage
|                |  |                  
|Less than 0%    |  |                   | 0   | %
|0%              |  |                   | 50  | %
|5%              |  |                   | 100 | %
|10% or more     |  |                   | 150 | %



| |  | All Corporate TSR and Corporate TSR minus Index TSR performances between
the percentages in the above tables will be interpolated in the manner
adopted by the Corporation from time to time.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9



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##### 



Section 6Redemption of Award Units





|6.01 |  | Redemption Date                                                                                                                                                                                                                                                                                                                                                                 
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Subject to the provisions of Section 6.03 below, the Award Units of each
Entitled Executive shall be redeemed and paid out by the Corporation in a
lump sum cash payment as soon as practicable following the end of the
Performance Cycle, or following the date of the Entitled Executives
retirement, permanent disability, death or involuntary termination, if
applicable.
|    
|6.02 |  | Value of Award Units                                                                                                                                                                                                                                                                                                                                                            
|     |  | The value of an Entitled Executives Award Units shall be equal to the
sum of the values of the Entitled Executives Corporate TSR Award Units
and Index TSR Award Units, as follows:                                                                                                                                                                                           



| | (a) |  | Corporate TSR Award Units                                                        
| | --- |  | ---------------------------------------------------------------------------------
| |     |  | The value of an Entitled Executives Corporate TSR Award Units
shall be equal to:



|
|
|
|
|
|
|
|
|
|
|



| | (b) |  | Index TSR Award Units                                                         
| | --- |  | ------------------------------------------------------------------------------
| |     |  | The values of an Entitled Executives Index TSR Award Units shall
be equal to:



| | (i)   |  | the number of Index TSR Award Units granted to
the Entitled Executive, subject to the reduction or forfeiture
of units described in Section 6.03, if applicable
| | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |       |  | MULTIPLIED BY                                                                                                                                                  
|
| | (ii)  |  | the Index TSR Vested Percentage                                                                                                                                
|
| |       |  | MULTIPLIED BY                                                                                                                                                  
|
| | (iii) |  | the PCS Inc. Closing Share Price, subject,
however, to a maximum value of three times the PCS Inc.
Opening Share Price                                         

10



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##### 





|6.03 |  | Early Redemption Date
|---- |  | ---------------------



| | (a) |  | Retirement, Permanent Disability, Death or Involuntary
Termination Without Just Cause                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |  | In the event an Entitled Executive retires, becomes Permanently
Disabled or dies prior to the end of the Performance Cycle or in
the event the Entitled Executives employment is involuntarily
terminated by the Corporation without Just Cause, the number of
Award Units allocated to the Entitled Executive pursuant to Section
4 (Allocation of Award Units) shall be reduced such that the
calculation of years and completed months of participation as
described in paragraph (b) of Section 4.01 (Allocation) shall end
as of the date of the Entitled Executives retirement, Permanent
Disability, death or involuntary termination, as the case may be.
|
| |     |  | One half the Award Units reduced shall be Corporate TSR Award Units
and one half shall be Index TSR Award Units.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |     |  | An Entitled Executive shall be required to provide at least 30 days
prior written notice of retirement to the Corporation. In the event
an Entitled Executive provides less than 30 days prior written
notice of retirement, the value of award units calculation per
Section 6.02 shall be performed as of the Entitled Executives
retirement date and the date that is 30 days following the date the
Entitled Executive provided written notice of retirement to the
Corporation, and the Corporation shall provide the lower valued
award to the Entitled Executive as determined by such two
calculations.                                                   
|
| | (b) |  | Voluntary Termination or Involuntary Termination With Just
Cause                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |  | In the event an Entitled Executive voluntarily terminates
employment prior to the end of the Performance Cycle or in the
event the Entitled Executives employment is involuntarily
terminated by the Corporation with Just Cause, the allocation of
Award Units to the Entitled Executive pursuant to Section 4
(Allocation of Award Units) shall be forfeited as of the date of
such termination of employment and the Entitled Executive shall not
be entitled to any payment under this Plan.                                                                                                                                                                  

11



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##### 



Section 7Administration of the Plan





|7.01 |  | Powers of the Committee                                                                                                                                                                                                                                                                                                           
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | The Committee shall have the discretionary power and authority to
determine who shall be Entitled Executives, approve Target Percentages
and generally administer the Plan. The Committee shall conclusively
interpret the provisions of this Plan and decide all questions of fact
arising in the application thereof.           
|    
|7.02 |  | Notification to Entitled Executives                                                                                                                                                                                                                                                                                               
|     |  | The Corporation will prepare a written notice to each Entitled Executive
specifying his or her Target Percentage, the number of Award Units
allocated and the terms of the Plan.                                                                                                                                                  
|    
|7.03 |  | Calculation of Award Payments                                                                                                                                                                                                                                                                                                     
|     |  | Management of the Corporation shall provide a report to the Committee
within 30 days of the end of the Performance Cycle showing the
calculations for determining award payments including the calculation of
the Corporate TSR and Index TSR. Such calculations shall be subject to
the review and confirmation of the Committee.
|    
|7.04 |  | Delegation of Duties                                                                                                                                                                                                                                                                                                              
|     |  | The Committee and/or the Board may delegate to any director or directors
or any officer or officers of the Corporation such administrative duties
and powers as it may see fit with respect to the Plan.                                                                                                                          

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Section 8General Provisions





|8.01 |  | Assignment or Alienation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | Except as required by applicable laws, the right of an Entitled Executive
to Award Units under this Plan shall not be given as security, be subject
to transfer, anticipation, commutation, alienation, sale, assignment,
encumbrance, charge, pledge, or hypothecation, or be subject to
execution, attachment, levy or similar process or assignment by operation
of law, and any attempt to effect any such action will be null and void
and of no effect.                                                                                                                                                                  
|    
|8.02 |  | Amendment or Termination                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|     |  | This Plan may be amended in whole or in part from time to time or
terminated by the Corporation. Any amendment or termination will be
binding on the Corporation, Entitled Executives and their respective
beneficiaries. Notice of termination or amendment will be provided to
Entitled Executives and in the case of deceased Entitled Executives,
their respective beneficiaries. However, no amendment or termination of
any provision of this Plan shall directly or indirectly deprive any
Entitled Executive or beneficiary of all or any portion of Award Units
allocated to the date of the amendment or termination.
|    
|8.03 |  | No Enlargement of Contractual Rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     |  | This Plan shall not give any Entitled Executive the right to be retained
in the service of the Corporation nor will it interfere with the right of
the Corporation to terminate the employment of the Entitled Executive.
Participation in this Plan will not give any Entitled Executive any right
or claim to any benefit, except to the extent provided in this Plan.                                                                                                                                                                                                                                                       
|    
|8.04 |  | Withholding of Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     |  | The Corporation will withhold all applicable taxes from any amounts paid
pursuant to this Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    
|8.05 |  | Binding on Successors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     |  | This Plan will be binding on any successor or successors of the
Corporation whether by merger, consolidation or otherwise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    
|8.06 |  | Currency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|     |  | The Award Units redeemed pursuant to this Plan will be paid in the same
currency as the Entitled Executive receives his or her Salary. If the
Salary of an Entitled Executive is paid in more than one currency during
a Performance Cycle, the currency of his or her Award Payment for that
Performance Cycle shall be determined by the Senior Vice-President,
Administration.                                                                                                                                                                                                                                              

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|8.07 |  | Certain Adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  | In the event that, at any time during the Performance Cycle, there is any
variation in the common shares of PCS Inc. or of any corporation within
the Index by reason of (i) a stock split, reverse of stock split, stock
dividend or other increase or decrease in the number of outstanding
common shares, (ii) a merger, consolidation, recapitalization,
amalgamation, plan of arrangement or similar statutory or corporate
transaction or (iii) other event that the Committee determines, such as a
sale of all or substantially all of any such corporations assets, the
Committee shall make such adjustments to the Index Opening Price, PCS
Inc. Opening Share Price, Index Closing Price or PCS Inc. Closing Share
Price or to the calculation of the Corporate TSR or Index TSR with
respect to such corporation and, in the case of any such event affecting
the common shares of PCS Inc. the number of then outstanding Award Units
as it deems necessary or appropriate to reflect such event.
|    
|8.08 |  | Governing Law                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     |  | This Plan shall be governed by the laws of the Province of Saskatchewan.
Section headings are for convenience only and shall not be considered
provisions of the Plan. Words in the singular shall included the plural,
and vice versa, unless qualified by the context.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    

Dated effective November 20, 2002.

/s/   Frederick J. Blesi
Frederick J. Blesi
Compensation Committee Chair

/s/   Barbara Jane Irwin
Barbara Jane Irwin
Senior Vice President Administration

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