Document:

EXHIBIT 10.8.5

EXHIBIT
10.8.5. : ALCAN SUPPLEMENTAL RETIREMENT
BENEFIT PLAN (CANADA)

SCHEDULE OF AMENDMENTS 02-1

1.           
The following subsection is added immediately
after subsection 1.01:

"1.01.1      Supplemental
Plan Amendments (from the Effective Date to June 2002)

During this
period, the Supplemental Plan was amended on numerous occasions for the purpose
of augmenting and improving pension benefits and coordinating the provisions of
the Supplemental Plan with those of the Plan. 
Eight pension benefit augmentations were granted, a bridge benefit was
added and early retirement factors were improved.  A new payment guarantee was added providing a
60% spousal with a 10 year guarantee. 
Several pension payment guarantees now apply as well to the bridge
benefit."

2.           
The sole paragraph of
subsection 5.02 is replaced by the following:

"The annual rate of Interest credited for a
calendar year shall be the annual return for that calendar year derived from
the investment of the assets of the Plan, less investment expenses and
administration costs, as determined by the Actuary of the Plan."

3.      The
sole paragraph of subsection 5.03 is replaced by the following:

"The rate of interest
credited on a lump sum payment which falls due shall be at the rate applied to
similar payments under the Plan in respect of each month of the period starting
from either the Date of Determination or the last calendar year-end when
interest was computed and credited in accordance with subsection 5.02,
whichever applies, and ending with the first of the month of payment."

4.      Paragraph 6.02 (ii) is replaced by the
following:

"he
has attained age 55 and he is not entitled to a refund under subsection 12.01
of the Plan."

5.      Paragraph 8.02(c) is amended by replacing the
clause which reads

"The
bridge benefit begins on the Pension Commencement Date of his retirement
benefit and is payable in monthly instalments until the earlier of the
following dates:  (i) his date of death
and, (ii) the limit date and, is reduced by any bridge benefit or its
equivalent payable from the Plan and from a pension plan of an Affiliated
Company or a Predecessor Company to the extent that credited service under such
plan is recognized as Credited Past Service under the Plan in accordance with
paragraphs 4.03(a) or 4.03(b) of the Plan."

 

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by the following clause

"The bridge benefit begins on the Pension
Commencement Date of his retirement benefit and is payable to him in monthly
instalments until the limit date; or until his death if before the limit date
and thereafter is payable to his Spouse or Beneficiary, as the case may be, in
accordance with the retirement pension guarantee elected by the Member under
section 9 and, is reduced by any bridge benefit or its equivalent payable from
the Plan and from a pension plan of an Affiliated Company or a Predecessor
Company to the extent that credited service under such plan is recognized as
Credited Past Service under the Plan in accordance with paragraphs 4.03(a) or
4.03(b) of the Plan."

6.      Subsection
8.03 is amended by adding the following sentence "Such deferral shall cause the
bridge benefit to which he may be entitled to commence only from his elected
pension commencement date under the plan." and by adding the following
paragraph:

"The eligibility to the bridge benefit of a
Member electing early deferred retirement is determined at his Early Retirement
Date and the amount of the bridge is determined in accordance with subsection
8.02(c)."

7.      The
following subsection is added immediately following subsection 8.07:

"8.08         Adjustment for Early Retirement
Pension from Another Company Source

The retirement benefit determined in this
section after the application of any early retirement factor in respect of a
Member, is reduced or increased as the case may be by the total of all amounts
each of which is the amount, in respect of a pension payable from another
company source deducted under subsection 7.01, determined by the formula

            A - B

            times

the amount of
normal pension payable from the other company source deducted under subsection
7.01

where

"A"    equals
the early retirement factor applied under this section,

 

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"B"    equals
the early retirement factor applied to the normal pension from the other
company source deducted under subsection 7.01."

8.      Subsection 9.02 is amended by adding
immediately following the first paragraph the following paragraph:

"The right of the
surviving Spouse of a Member to a joint and survivor pension shall terminate
and the pension guarantee elected by the Member under paragraph 9.02(b.1),
9.02(b.2) and 9.02(b.3) or under an equivalent provision of the Supplemental
Plan as it read prior to 1 January 2001 shall be null and void following
modification effected pursuant to subsection 9.06."

9.      Clause (b) of subsection 9.02 is replaced
by the following:

"(b.1)         the
Spouse's pension payment guarantee (option 1)

Under
this guarantee the retirement benefit is payable during the Member's lifetime
with a provision that if his Spouse survives him 50% of such retirement benefit
as elected by the Member at the time of electing the guarantee will be payable
after his death to the Spouse nominated by the Member at the time of electing
the guarantee during the remaining lifetime of the Spouse.

Should
the Spouse die before the Member's Payment Commencement Date, the election of
this guarantee shall be null and void.

(b.2)          the
Spouse's pension payment guarantee (option 2)

Under this guarantee the retirement
benefit is payable during the Member's lifetime with a provision that if his
Spouse survives him, either 60% (not available to Provincial Employees of
Manitoba) or 66 2/3% (only available to Provincial Employees of Manitoba), 75%
or 100% of such retirement benefit as elected by the Member at the time of
electing the guarantee will be payable after his death to the Spouse nominated
by the Member at the time of electing the guarantee during the remaining
lifetime of the Spouse.

Furthermore under this guarantee,
if the death of the Member occurs while he is still in receipt of a bridge
benefit, a corresponding percentage of the bridge benefit will be payable after
his death to such Spouse until the earlier of the date on which the Member, had
the Member survived, would have reached his limit date, as such term is defined
in paragraph 8.02(c) and the date of such Spouse's death.

 

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Should the Spouse die before the
Member's Payment Commencement Date, the election of this guarantee shall be
null and void.

(b.3)          the
Spouse's pension payment guarantee (option 3)

Under this guarantee the retirement
benefit is payable during the Member's lifetime with a provision that if his
Spouse survives him and his death occurs prior to having received 120 monthly
payments, payments will be continued to the Spouse nominated by the Member at
the time of electing the guarantee until 120 payments in all have been made and
thereafter 60% of the retirement benefit will be payable during the remaining
lifetime of such Spouse.  If such Spouse
predeceases the Member or dies before the 120 monthly payments have been made,
payments will be continued to the Member's Beneficiary until 120 monthly
payments in all have been made.

Furthermore under this guarantee,
if (i) the death of the Member occurs while he is still in receipt of a bridge
benefit, (ii) payment of the bridge benefit began before he attained the age
that is ten years under his limit date, as such term is defined in paragraph
8.02(c), (iii) the death of the Member occurs before having received 120 bridge
benefit payments and (iv) his Spouse survives him, bridge benefit payments will
be continued to the Spouse nominated by the Member at the time of electing the
guarantee until 120 bridge benefit payments in all have been made and
thereafter 60% of the bridge benefit will be payable to such Spouse until the
earlier of the date on which the Member, had the Member survived,  would have reached his limit date, as such
term is defined in paragraph 8.02(c) and the date of the Spouse's death.  If such Spouse predeceases the Member or dies
after the Member but before 120 bridge benefit payments have been made, bridge
benefit payments will be continued to the Member's Beneficiary until 120 bridge
benefit payments in all have been made. 
If under condition (iii) above the death of the Member occurs after
having received 120 bridge benefit payments and all other conditions remain unchanged,
60% of the bridge benefit will be payable to such Spouse until the earlier of
the date on which the Member, had the Member survived, would have reached his
limit date, as such term is defined in paragraph 8.02(c) and the date of such
Spouse's death.

Alternatively under this guarantee,
if (i) the death of the Member occurs while he is still in receipt of a bridge
benefit, (ii) payment of the bridge benefit began on or after he attained the
age that is ten years under his limit date, as such term is defined in
paragraph 8.02(c) and (iii) his Spouse survives him, payments will be continued
to such Spouse nominated by the Member at the time of electing the guarantee
until the earlier of the date on which the Member, had the Member survived,
would have reached his limit date, as such term is defined in paragraph 8.02(c)
and the date of such Spouse's death.  If
such Spouse predeceases the Member or dies after the Member but before the date
on which the Member, had the Member survived, would have reached his limit
date, as such term is defined in paragraph 8.02(c), payments will be continued
to the Member's Beneficiary until the date on which the Member, had the Member
survived, would have reached his limit date, as such term is defined in
paragraph 8.02(c).

 

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Should the Spouse die before the
Member's Payment Commencement Date, the election of this guarantee shall be
null and void."

 

10.       Table
A of clause (c) of subsection 9.02 is amended by inserting after the second row
the following additional row:

            "60%/10yr.
guar.          96 2/3%             -"

11.    The second paragraph of clause (d) of
subsection 9.02 is replaced by the following:

"Furthermore
under this guarantee, if the death of the Member occurs while he is still in
receipt of a bridge benefit and before having received 120 bridge benefit
payments, payments of the bridge benefit will be continued to the Member's
Beneficiary until the earlier of the date on which the Member, had the Member
survived, would have reached his limit date, as such term is defined in
paragraph 8.02(c) and the date at which 120 payments in all have been made.

If
the Member elects such guarantee at his Early Retirement Date, Normal
Retirement Date or Postponed Retirement Date, his retirement pension is
multiplied by the greater of 95% and a factor, in percent, which will make the
resulting benefit the Actuarial Equivalent of his retirement benefit in the
five-year payment guarantee and his bridge benefit is multiplied by a factor
which will make the resulting bridge benefit the Actuarial Equivalent of his
bridge benefit that without this guarantee would normally have terminated at
the earlier of his death or the limit date, as such term is defined in
paragraph 8.02 (c)."

11.       The following
subsections are added immediately following subsection 9.05:

"9.06         Retirement Benefit Redetermination
after Payment

Commencement Date

This subsection applies
only to a Member who at the relevant time is a Provincial Employee of
Quebec.  If after Payment Commencement
Date the right of a Spouse to a joint and survivor pension is terminated under
the Plan and there exists no legal obligation or demand pending upon the
Supplemental Plan to pay such joint and survivor pension upon the Member's
death, the Administrator must upon application redetermine, as of the effective
date of such termination or if the Spouse's right terminated prior to 1 January
2001, as of the date of application by the Member, the Member's retirement
benefit that has been established based on the election by the Member of a
Spouse's pension payment guarantee under paragraph 9.02(b.1), 9.02(b.2) or
9.02(b.3) or under an equivalent provision of the Supplemental Plan as it read
prior to 1 January 2001. The redetermined retirement benefit shall be in the
same amount and have the same characteristics as the retirement benefit
according to the five-year guarantee. 
The redetermination of a retirement pension under this subsection cannot
alone operate to reduce the amount of the retirement pension paid to the
Member.

 

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9.07          Pension Payment Guarantee
(transition)

Where a Member whose
Payment Commencement Date occurred during the period beginning 1 January 2001
and ending 30 September 2001 dies while still in receipt of a bridge benefit
and is survived by the Spouse nominated by the Member at the time of electing
the Spouse's pension payment guarantee (option 1) described in paragraph
9.02(b.1), 60% of the bridge benefit will be payable after the Member's death
to that Spouse until the earlier of the date on which the Member, had the
Member survived, would have reached his limit date, as such term is defined in
paragraph 8.02(c) and the date of that Spouse's death."

12.    Subsection 10.01 is amended by deleting the
words "after the completion of two years of Continuous Service as a Member or
two years of Credited Service and".

13.    The two paragraphs of subsection 10.06 are
replaced by the following:

"The
amount payable to a Member's Beneficiary of any retirement benefit under the
five-year guarantee, the ten year guarantee or the spouse's pension payment
guarantee (option 3) and of any bridge benefit under the spouse's pension
guarantee (option 3) or the ten year guarantee may, if so requested by the
Beneficiary, be paid in a lump sum that is the Actuarial Equivalent of the
remaining retirement benefit payments or bridge benefit payments under the
guarantee.

The amount payable to a Member's estate of any
retirement benefit under the five-year guarantee, the ten-year guarantee or the
spouse's pension payment guarantee (option 3) and  of any bridge benefit under the
spouse's pension payment guarantee (option 3) or the ten year guarantee shall
be paid in a lump sum that is the Actuarial Equivalent of the remaining
retirement benefit payments or bridge benefit payments under the guarantee."

 

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14.    The
sole paragraph of subsection 10.07 is replaced by the following:

"The Beneficiary
designation made in accordance with subsection 10.04 shall apply to any
retirement benefit payments payable upon the death during retirement of a
Member who received a retirement benefit under the five-year guarantee, the
10-year pension payment guarantee or the spouse's pension payment guarantee
(option 3), to any remaining retirement benefit payments payable upon the death
of the Member's Spouse who received benefit payments under the spouse's pension
payment guarantee (option 3), to any bridge benefit payments payable upon the
death of a Member who received a retirement benefit under the spouse's pension
payment guarantee (option 3) or under the ten year guarantee and to any
remaining bridge benefit payments payable upon the death of the Member's Spouse
who received benefit payments under the spouse's pension payment guarantee
(option 3)."

15.   Subsection 11.02 is amended by deleting the
words "after the completion of two years of Continuous Service while a Member
or two years of Credited Service, (or for a Provincial Employee of
Saskatchewan, a continuous period of one year if his age and the number of
years of service or Credited Service when added equals at least 45)" and by inserting
immediately after the words "under (a) unless" the words ", where he is
otherwise entitled to a deferred retirement pension under the Plan,".

16.  
The following subsection is added immediately
following subsection 11.03:

"11.04       Ceasing to be a Canadian Resident

An application by a
Member in accordance with subsection 12.07 of the Plan to receive a lump sum
payment equal to the value, according to his entitlement, of his retirement
benefit under the Plan shall be deemed to include an application to receive a
lump sum payment equal to the value, according to his entitlement, of his
retirement benefit under the Supplemental Plan. 
However, payment in such lump sum is subject to approval by the
Company."

The above amendments are
effective from 1 January 2001.

 

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SCHEDULE OF AMENDMENTS 02-2

1.     
The
following subsection is added immediately following subsection 15.09:

15.10     Pension Augmentation at 1 October 2002

15.10.1   
The retirement pension, the deferred retirement
pension and the Disability Pension of a Member who has retired, terminated his
employment or became disabled as the case may be, before 2 September 2002,
including the pension payable under any attached elected pension payment
guarantee, either contingent or in payment, and the pension, either deferred or
in payment, to a surviving spouse, shall be augmented on 1 October 2002.

The monthly amount of the
augmentation on any date of calculation on or after 1 October 2002 is equal to
the product of the Adjusted Augmentation Factor and the Monthly Pension.

15.10.2  For the purposes of this subsection 15.10
only, the following expressions shall have the meanings set out below:

"Commencement Date"
means the earliest of a Member's retirement date;  the date he became disabled;  the date of termination of service;  the date he became eligible to an unreduced
early retirement pension, but not before 1 January 2001, if on 30 December 2000
he had been on the non-active payroll of a Participating Company and, in the
case of a pre-retirement surviving spouse's pension, the first of the month
following the Member's date of death. 

"Consumer Price
Index" for a month means the Consumer Price Index for the month as published by
Statistics Canada under authority of the Statistics Act or the corresponding
index of the country in whose currency the Monthly Pension is paid at a fixed
rate of exchange.

"Monthly Pension" means the monthly equivalent of the
pension referred to in subparagraph 15.10.1.

"Adjusted Monthly Pension" means the sum of adjusted
monthly pension determined under paragraph 19.10.2 of the Plan and the Monthly
Pension payable at 1 October 2002, excluding that portion which ceases to be
paid at age 65, or payable at normal retirement date
in the case of a deferred pension.

 

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"Augmentation Factor" means the factor determined by the
following formula[1]:

the greater of

(i)         A + B - 1

and

(ii)        nil

where

"A" equals the lesser of

(i)         1.03C/12

and

(ii)        CPI1 /
CPI2,

"B" equals the greater of

(i)         0.5 x (CPI1
/ CPI2 - 1.03C/12)

and

(ii)        nil

"C" equals the lesser of

(i)         12

and

(ii)        the number of months that the Commencement Date precedes 1
October 2002,

"CPI1" equals the average Consumer Price Index
for the 12-month period ending 30 June 2002,

and

"CPI2" equals the average Consumer Price Index
for the 12-month period ending the later of

(i)         three calendar months prior to the month during which the
Commencement Date occurred

and

(ii)              
30 June 2001.

________________________________

[1] The formula may also be expressed as follows:

              Max. {nil;  [ Min. (1.03C/12;
CPI1 / 
CPI2 ) + 0.5 x Max. (nil; CPI1 /  CPI2 - 1.03C/12 ) ] - 1}

 

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"Adjusted Augmentation Factor" means the factor determined
by the following formula:

                        Augmentation
Factor x A

                   ---------------------------------

                     Adjusted
Monthly Pension

where A equals the lesser of

(i)                
Adjusted Monthly Pension

and

(ii)        $25,000.00
or where the Monthly Pension is paid at a fixed rate of exchange in a currency
other than Canadian dollars, the equivalent of $25,000.00 in that other
currency converted at the rate of exchange of 30 June 2002.     

15.10.3  The retirement pension of a Member, who
retires on or after 1 October 2002 and who immediately prior to such retirement
was in receipt of an Approved Disability Benefit, shall be augmented from his
retirement date by the same augmentation percentage that would otherwise have
applied to his retirement pension had his date of disability been his
Commencement Date for the purpose of calculating such augmentation.

15.10.4  The retirement pension of a Member, who
retires on or after 1 October 2002 and, who on 30 December 2000 and immediately
prior to such retirement was on the non-active payroll of a Participating
Company, shall be augmented from his retirement date by the same augmentation
percentage that would otherwise have applied to his retirement pension had the
date of his eligibility to an unreduced early retirement pension, but not
before 1 January 2001, been his Commencement Date for the purpose of calculating
such augmentation.

15.10.5  Unless it is an integral number of hundreds of
1%, the sum, on a compounded basis, of the augmentation factors under this and
all previous pension augmentations since Commencement Date shall be rounded to
the next higher multiple of 0.01%.

The above amendment shall
come into force on 1 October 2002.

 

10Exhibit 10.18

EXHIBIT 10.18

CHANGE OF CONTROL AGREEMENT

A G R E E M E N T

Agreement made as of the 1st
day of August 2002, by and between Alcan Inc., a corporation incorporated under
the laws of Canada with its registered office at 1188 Sherbrooke
Street West, Montreal, Québec, Canada H3A 3G2 (the "Corporation") and Travis Engen (the "Executive").

WITNESSETH:

                        WHEREAS,
the Corporation and the Executive have entered into an Employment Agreement,
dated 23rd February 2001 (the "Employment Agreement") whereby the
Executive has agreed to become the President and Chief Executive Officer of the
Corporation;

                        WHEREAS,
the Corporation believes that the establishment and maintenance of a sound and
vital management of the Corporation is essential to the protection and enhancement
of the interests of the Corporation and its shareholders; and 

                        WHEREAS,
the Corporation also recognizes that the possibility of a Change of Control of
the Corporation (as defined in Section 1 hereof), with the attendant
uncertainties and risks, might result in the departure or distraction of key
employees of the Corporation to the detriment of the Corporation and its
shareholders; and

                        WHEREAS,
the Corporation has determined that it is appropriate to take steps to induce
key employees to remain with the Corporation, and to reinforce and encourage
their continued attention and dedication, when faced with the possibility of a
Change of Control of the Corporation.

                        NOW,
THEREFORE, in consideration of the premises and mutual covenants herein
contained, the parties hereto hereby agree as follows:

1.         Change of Control shall mean any of the following:

1.1             
the acquisition of direct or indirect beneficial
ownership (as determined under Rule 13d-3 promulgated under the United States
Securities Exchange Act of 1934), in the aggregate, of securities of the
Corporation representing twenty percent (20%) or more of the total combined
voting power of the Corporation's then issued and outstanding voting securities
entitled to vote in the general election for directors, by any person or entity
or group of associated persons or entities (within the meaning of Section
13(d)(3) or 14(d)(2) of the United States Securities Exchange Act of 1934)
acting jointly or in concert (other than its subsidiaries or any employee benefit
plan of either) (a "Person"), provided that, if a buyback of shares by the
Corporation causes the Person to attain such limit, such limit shall not be
deemed attained unless and until such Person acquires any such voting
securities of the Corporation after the buyback that caused the level to be
attained; 

 

 

1.2       the amalgamation, merger,
arrangement, reorganization or consolidation of the Corporation with a Person
(including for the purposes of this Agreement any transaction or series of
transactions such as share exchange transaction with the same stated or
effective objective) other than:

  (a)        an amalgamation, merger,
arrangement, reorganization or consolidation which would result in the voting
securities of the Corporation outstanding immediately prior thereto continuing
to represent (either by remaining outstanding or by being converted into voting
securities of the surviving or parent entity) two-thirds or more of the
combined voting power (based on normal issue voting) of the voting securities
of the Corporation or such surviving or parent entity outstanding immediately
after such amalgamation, merger, arrangement, reorganization or consolidation
in substantially the same proportion as immediately prior to such amalgamation,
merger, arrangement, reorganization or consolidation, without there occurring
as a result or in connection therewith any substantial change in the
composition of the Corporation's Board; or

(b)        an amalgamation, merger,
arrangement, reorganization or consolidation effected to implement a
recapitalization of the Corporation (or similar transaction) in which no Person
is or becomes the beneficial owner, directly or indirectly (as determined under
Rule 13-d-3 promulgated under the United States Securities Exchange Act of
1934), of securities representing more than the amounts set forth in paragraph
1.1 above;

1.3             
the approval by shareholders of the Corporation of any
plan or proposal for the complete liquidation or dissolution of the
Corporation;

1.4             
the issuance by the Corporation of shares (of the same
or equivalent class as the principal class of publicly listed voted equity
shares of the Corporation) in connection with an exchange offer acquisition
(including, for the purposes of this Agreement, a series of connected exchange
offer acquisitions), if such issuance results in the holders of the
Corporation's principal class of publicly listed voting shares (immediately
prior to the issuance) holding less than two-thirds of the total number
outstanding (immediately following the issuance) and there occurs in connection
therewith any substantial change in the composition of the Corporation's Board.

 

 

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1.5       the
sale or other disposition of all or substantially all of the assets of the
Corporation other than the sale or other disposition of all or substantially
all of the assets of the Corporation either

(a)        to
a person or persons who beneficially own, directly or indirectly, at least
fifty percent (50%) or more of the combined voting power (based on normal issue
voting) of the voting securities of the Corporation at the time of the sale; or

(b)        in a manner such that
after such sale or other disposition the ultimate parent entity of the acquirer
is, directly or indirectly, owned (based on normal issue voting) at least fifty
percent (50%) by shareholders who immediately prior to such transaction owned
at least fifty percent (50%) of the voting power (based on normal issue voting)
of the Corporation immediately prior to such transaction in materially the same
proportion as owned by such shareholders immediately prior to such transaction;

provided
that there does not occur in connection therewith any substantial change in the
composition of the Corporation's Board.

1.6             
the approval by the vote of the Corporation's holders
voting shares of any amalgamation, merger, arrangement, reorganization or
consolidation in which the Corporation will not survive as a publicly-owned
corporation or should the Corporation for any reason become a subsidiary (as
defined in the Canada Business Corporations Act) of any other corporation;

1.7             
individuals who, as of the close of business on the
effective date of this Agreement, constitute the Board (the "Incumbent
Directors") cease for any reason to constitute at  least two-thirds of the Board; provided that
any person becoming a Director subsequent to the close of business on the
effective date of this Agreement, whose election or nomination for election was
approved by a vote of at least two-thirds of the Incumbent Directors then on
the Board (either by a specific vote or by approval of the Management Proxy
Circular of the Corporation in which such person is named a nominee for
Director, without objection to such nomination) shall be an Incumbent Director;
provided, however, that no individual elected or nominated as a Director of the
Corporation initially as a result of an actual or threatened proxy or election
contest with respect to Directors, as a result of any other actual or
threatened solicitation of proxies or consents by or on behalf of any person
other than the Board or as a result of or in connection with any amalgamation,
merger, arrangement, reorganization, consolidation or share exchange
acquisition transaction by the Corporation with any Person, shall be deemed to
be an Incumbent Director;

Only the first Change of Control after
the date hereof shall be deemed a Change of Control hereunder.

Notwithstanding the foregoing,
should the Person referred to in paragraph 1.1 above include Mr. Martin Ebner or BZ Group Holding Limited, the reference to "twenty
percent (20%)" in such paragraph shall be replaced with "thirty percent (30%)."

 

 

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2.     Term.  This agreement shall commence on the date
hereof and shall expire, unless previously terminated as provided herein, on
the earliest of 

(i)         30
April 2005; 

(ii)        the
date of the Executive's death or termination as a result of Disability, as
defined below; 

(iii)       subject
to Section 3 hereof, the date of the retirement or other termination of the
Executive's employment (voluntarily or involuntarily) with the Corporation
prior to a Change of Control; or 

(iv)       if prior to a Change of
Control, the entity for which the Executive is then working ceases to be a
Subsidiary, as defined in Section 8 hereof, of Corporation.  

Notwithstanding
anything in this Agreement to the contrary, if the Corporation becomes
obligated to make any payment to the Executive pursuant to the terms hereof at
or prior to the expiration of this Agreement, then this Agreement shall remain
in effect for such purposes until all of the Corporation's obligations
hereunder are fulfilled. Further, the provisions of paragraph 9.1 hereunder
shall survive and remain in effect notwithstanding the termination of this
Agreement, the termination of the Executive's employment or any breach or
repudiation of alleged breach or repudiation by the Corporation of this
Agreement or any one or more of his terms.

Disability shall
have the meaning ascribed to such term in the Corporation's long term
disability plan in which the Executive participates.  A termination for Disability shall be deemed
to occur when the Executive is terminated by the Corporation by written notice
after the disability is established and the Executive remains disabled.

3.         Termination Following Change of
Control.

3.1       If,
and only if, a Change of Control occurs and one of the following occurs : (i)  the Executive's employment with the
Corporation is terminated by the Corporation without Cause other than for
Disability, or (ii)  by the Executive for
Good Reason, during the period running from the date of the Change of Control
to twelve (12) months after the date of such Change of Control, then the
Executive shall be entitled to the amounts provided in Section 4 upon such
termination.

In addition, notwithstanding the foregoing, in the event the Executive
is either terminated without Cause or terminates employment for Good Reason
(based on an event occurring within three (3) months prior the occurrence of a
Change of Control) within three (3) months prior the occurrence of a Change of
Control, such termination shall, upon the occurrence of a Change of Control, be
deemed to be covered under the Agreement and the Executive shall be entitled to
the amounts provided under Section 4 hereof reduced by any amounts otherwise
received in connection with his termination of employment. 

3.2       As used in this
Agreement, termination for Good Reason shall mean a termination by the
Executive within ninety (90) days after the occurrence of the Good Reason
event, failing which such event shall not constitute Good Reason under this
Agreement. For purposes of this Agreement, "Good Reason" shall mean the
occurrence or failure to cause the occurrence of any of the following events
without the Executive's express written consent:

 

 

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(i)         any
material diminution in the Executive's duties and responsibilities, authority
(except in each case in connection with the termination of the Executive's
employment for Cause or as a result of the Executive's death, or temporarily as
a result of the Executive's illness or other absence,);

(ii)        a reduction in
the Executive's annual base salary rate;

(iii)       a
relocation of the Executive's principal business location to an area outside
the country of the Executive's principal business location at the time of the
Change of Control;

(iv)       a failure by the
Corporation after a Change of Control to continue any annual Executive
Performance Award Plan, program or arrangement in which the Executive is then
entitled to participate (the "Bonus Plans"), provided that any such plan(s) may
be modified at the Corporation's discretion from time to time but shall be
deemed terminated if (x) any such plan does not remain substantially in the
form in effect prior to such modification and (y) if plans providing the
Executive with substantially similar benefits are not substituted therefor
("Substitute Plans"), or a failure by the Corporation to continue the Executive
as a participant in the Bonus Plans and Substitute Plans on at least the same
basis as to potential amount of the bonus and the achievability thereof as the
Executive participated immediately prior to any change in such plans of awards,
in accordance with the Bonus Plans and the Substitute Plans; 

(v)        a failure to permit the
Executive after the Change of Control to participate in cash or equity based
incentive plans and programs (i.e. the Corporation's Executive Deferred Share
Unit Plan, Non-Qualified Deferred Compensation Plan, Executive Share Option
Plan) other than Bonus Plans on a basis providing the Executive in the
aggregate with an annualized award value in each fiscal year after the Change
of Control at least equal to the aggregate annualized award value being
provided by the Corporation to the Executive under such incentive plans and
programs immediately prior to the Change of Control (with any awards intended
not to be repeated on an annual basis allocated over the years the awards are
intended to cover);

(vi)       the failure by the
Corporation to continue in effect any employee benefit program such as a
saving, pension, excess pension, medical, dental, disability, accident, life
insurance plan or a relocation plan or policy or any other material plan,
program, perquisite or policy of the Corporation intended to benefit the
Executive in which the Executive is participating at the time of a Change of
Control (or programs providing the Executive with at least substantially
similar benefits) other than as a result of the normal expiration of any such
employee benefit program in accordance with its terms as in effect at the time
of a Change of Control, or taking of any action, or the failure to act, by the
Corporation which would adversely affect the executive's continued
participation in any of such employee benefit programs on at least as favourable a basis to the Executive as is the case  on the date of a Change of Control; or which
would materially reduce the Executive's benefits in the future under any of
such employee benefit programs or deprive him of any material benefit enjoyed
by the Executive at the time of a Change of Control;

 

 

5

 

(vii)      a material breach by the
Corporation of any other written agreement with the Executive that remains
uncured for twenty-one (21) days after written notice of such breach is given
to the Corporation;

(viii)      failure of any
successor (as defined in Section 10 herein) to assume in a writing delivered to
the Executive the obligations hereunder within twenty-one (21) days after
written notice by the Executive, or

3.3       As used in this Agreement, the term
"Cause" shall mean

(i)         the
failure by the Executive to attempt to substantially perform his or her duties
and responsibilities with regard to the Corporation or any affiliate (other
than any such failure resulting from the Executive's incapacity due to physical
or mental illness of any such actual or anticipated failure by the Executive
for Good Reason, as defined in paragraph 3.2) after demand for substantial
performance is delivered by the Corporation that specifically identifies the
manner in which the Corporation believes the Executive has failed to attempt to
substantially perform his or her duties and responsibilities and a reasonable
time for the Executive to correct or remedy;

(ii)        the
willful engaging by the Executive in misconduct in connection with the
Corporation or its business which is materially injurious to the Corporation
monetarily or otherwise (including but not limited to conduct which is
prohibited by the provisions of Section 9.1 herein); or

(iii)       any
misappropriation or fraud with regard to the Corporation or any of the assets
of the Corporation (other than good faith expense account disputes).

For purposes of
this paragraph, no act, or failure to act, on the Executive's part shall be
considered "willful" unless done or omitted to be done, by him or her not in
good faith and without reasonable belief that his or her action or omission was
in the best interests of the Corporation. In the event that the Executive
alleges that the failure to attempt to perform his or her duties and
responsibilities is due to a physical or mental illness, and thus not "Cause"
under paragraph 3.3, the Executive shall be required to furnish the Corporation
with a written statement from a licensed physician who is reasonably acceptable
to the Corporation which confirms the Executive's inability to attempt to
perform due to such physical or mental illness. A termination for Cause after a
Change of Control shall be based only on events occurring after such Change of
Control; provided, however, the foregoing limitation shall not apply to an
event constituting Cause which was not discovered by the Corporation prior to a
Change of Control.

 

 

6

 

4.         Compensation
Upon Termination. 

4.1       If
the Executive's employment is terminated for Cause following a Change of
Control or upon the occurrence of a Change of Control in a manner described in
paragraph 3.1 the Corporation shall :

(a)        pay
to the Date of Termination, the Executive's Base Salary, the prorated amount of
the guideline award under the Corporation's Executive Performance Award Plan
(EPA) and the cash value of any untaken and accrued vacations to the Date of
Termination.  The aggregate amount will
be paid within five (5) days of the Date of Termination;

(b)        accrue
service under the Corporation's pension plans to the Date of Termination;

(c)        maintain all other
benefits and perquisites in which the Executive participates to the Date of Termination,
but limited to the coverage in force under those benefit plans on the Date of
Notice of Termination; and

(d)      
not grant any options to
purchase shares under the Alcan Executive Share Option Plan to the Executive
between the date of Notice of Termination and the actual Date of Termination.

4.2             
In the event of Termination for Cause following a
Change of Control, the Corporation's obligations to the Executive shall be
limited to those under paragraph 4.1.

4.3       If the Executive's
employment is terminated after the first occurrence of a Change of Control in a
manner described in paragraph 3.1 then, the Executive shall be entitled without
regard to any contrary provisions of any benefit plan, to a severance pay,
subject to the following paragraph, as provided below :

(a)        an
amount equal to 36 times the Executive's monthly base salary on the Date of
Termination;

(b)        an
amount equal to 36 times the monthly EPA guideline amount in force on the Date
of Termination; and

(c)        an
amount equal to 36 times the monthly Mid-Term Incentive Program (MTIP)
guideline amount in force on the Executive's Date of Termination.

If the Date of
Termination is before the Executive's declared retirement date, the severance
pay shall be calculated using a number, in lieu of 36, equal to the number of
months remaining to such retirement date, in each of sub-paragraphs (a), (b)
and (c) above.

The Executive
may, in writing, (in the Notice of Termination or otherwise) direct the
Corporation that the severance pay pursuant to the paragraph 4.3 hereof shall
be paid, either :

(i)         in
a lump sum payable within five (5) days of the Date of Termination where in
such case, all benefit plan coverage cease on such date, or

 

 

7

 

(ii)        in 36 equal monthly
installments, (or for a period consistent with the Corporation's practices as
approved by the Personnel Committee of the Board) after having the Executive
transferred to the non-active payroll of the Corporation where in such case all
benefit plan coverage continue at the previous level for that same number of
months except coverage under the Corporation's short-term and long-term
disability plans, vacation program, eligibility in the Alcan Share Option Plan
and perquisite benefit (car, financial and tax counseling, club membership)
which shall cease on Date of Termination.

Monthly installments
paid on the non-active payroll shall be excluded in the calculation of pensionable earnings while the duration on the non-active
payroll shall be included as service for calculating years of service under the
Corporation's pension plans.

4.4             
Any loans owing by the Executive to the Corporation
shall become due and payable as per the terms of the applicable loan agreement.

4.5       After the occurrence of a
Change of Control, as defined in Section I, all options under the Corporation's
Executive Share Option Plan shall become immediately exercisable and all
waiting periods and holding periods, as defined in such plan, shall be waived.

5.     Notice of Termination.  After a Change of Control, any purported
termination of the Executive's employment (other than by reason of death) shall
be communicated by written Notice of Termination from one party hereto to the
other party hereto in accordance with Section 13.  For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the
Executive's employment.  

6.     Date of Termination.  "Date of termination", with respect to any
purported termination of the Executive's employment after a Change of Control,
shall mean the date specified in the Notice of Termination (which, in the case
of a termination by the Corporation, shall not be less than thirty (30) days
except in the case of a termination for Cause which shall be the date specified
in the Notice of Termination and, in the case of a termination by the Executive
for Good Reason, shall not be earlier than twelve (12) months after the Change
of Control). In the event of Notice of Termination by the Corporation, the Executive
may treat such notice as having a date of termination at any date between the
date of the receipt of such notice and the date of termination indicated in the
Notice of Termination by the Corporation; provided, that the Executive must
give the Corporation written notice of the date of termination if he or she
deems it to have occurred prior to the date of termination indicated in the
notice.

7.    No Duty to Mitigate/Set-off.  The Corporation agrees that if the
Executive's employment with the Corporation is terminated pursuant to this
Agreement during the term of this Agreement, the Executive shall not be
required to seek other employment or to attempt in any way to reduce any
amounts payable to the Executive by the Corporation pursuant to this Agreement.
Further, the amount of any payment or benefit provided for in this Agreement
shall not be reduced by any compensation earned by the Executive or benefit
provided to the Executive as the result of employment by another employer or
otherwise. Except as otherwise provided herein and apart from any disagreement
between the Executive and the Corporation concerning interpretation of this
Agreement or any term or provision hereof, the Corporation's obligations to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any circumstances, including
without limitation, any set-off, counterclaim, recoupment,
defense or other right which the Corporation may have against the Executive.

 

 

8

 

8.     Service with Subsidiaries or the
Corporation.  For purposes of this
Agreement, employment by the Corporation or a Subsidiary of the Corporation
shall be deemed to be employment by the Corporation and references to the
Corporation shall include all such entities, except that the payment obligation
hereunder shall be solely that of the Corporation. A Change of Control,
however, as used in this Agreement, shall refer only to a Change of Control of
Alcan Inc.  For purposes of this
Agreement a "Subsidiary" shall mean any entity in which the Corporation owns,
directly or indirectly, at least fifty percent (50%) of the outstanding
securities entitled to vote for the election of directors.

9.         Confidentiality - No Non-Competition
- No Resignation.

9.1       The Executive shall not
at any time during the term of this Agreement, or thereafter, directly or
indirectly, for any reason whatsoever, communicate or disclose to any
unauthorized person, firm or corporation, or use for the Executive's own
account, without the prior written consent of the Board, any proprietary
processes, trade secrets or other confidential data or information of the
Corporation and its related and affiliated companies concerning their
businesses or affairs, accounts, products, services or customers, it being understood,
however, that the obligations of this Section shall not apply to the extent
that the aforesaid maters (i) are disclosed in
circumstances in which the Executive is legally required to do so, or (ii)
become known to and available for use by the public other than by the
Executive's wrongful act or omission.

9.2       Upon the occurrence of a
Change of Control, any non-competition agreement between the Corporation and
the Executive shall be considered null and void.

10.   Successors - Binding Agreement.  In addition to any obligations imposed by law
upon any successor to the Corporation, the Corporation will require any
successor (whether direct or indirect, by purchase, amalgamation, merger,
arrangement, reorganization, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Corporation to expressly
assume and agree in writing to perform this Agreement in the same manner and to
the same extent that the Corporation would be required to perform it if no such
succession had taken place. This Agreement shall inure to the benefit of and be
enforceable by the Executive's personal or legal representatives, executors,
administrators, successors and heirs. If the Executive shall die after
termination of his employment while any amount would still be payable to the
Executive hereunder if the Executive had continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of
this Agreement to the executors, personal representatives or administrators of
the Executive's estate. This Agreement is personal to the Executive and neither
this Agreement nor any rights hereunder may be assigned by the Executive.

 

 

9

 

11.  
Miscellaneous. 
No provisions of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and
signed by the Executive and such officer as may be specifically designated by
the Board. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time. This Agreement and the Employment Agreement
constitute the entire agreement between the parties hereto pertaining to the
subject matter hereof. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement or the
Employment Agreement. All references to any law shall be deemed also to refer
to any successor provisions to such laws.

12.   Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

13.   Notices.  Any notice or other communication required or
permitted hereunder shall be in writing and shall be delivered personally, or
sent by registered mail, postage prepaid as follows:

            (i)         If to the
Corporation, to:

                        Alcan
Inc.

                        1188
Sherbrooke Street West

                        Montreal,
Quebec

                        H3A
3G2

                        Attention:  Corporate Secretary

            (ii)        If to the Executive, to his last shown
address

                        on the books of the Corporation.

Any such notice
shall be deemed given when so delivered personally, or, if mailed, five days
after the date of deposit in the Canadian mail. Any party may by notice given
in accordance with this Section to the other parties, designate another address
or person for receipt of notices hereunder.

14.   Severability.  If any provisions of this Agreement shall be
declared to be invalid or unenforceable, in whole or in part, such invalidity
or unenforceability shall not affect the remaining provisions hereof which
shall remain in full force and effect.

 

 

10

 

15.   Legal Fees.  In the event the Corporation does not make
the payments due hereunder on a timely basis and the Executive collects any
part or all of the payments provided for hereunder or otherwise successfully
enforces the terms of this Agreement by or through a lawyer or lawyers, the
Corporation shall pay all costs of such collection or enforcement, including
reasonable legal fees and other reasonable fees and expenses which the
Executive may incur. The Corporation shall pay to the Executive interest at the
prime lending rate as announced from time to time by Royal Bank of Canada on
all or any part of any amount to be paid to Executive hereunder that is not
paid when due. The prime rate for each calendar quarter shall be the prime rate
in effect on the first day of the calendar quarter.

16.    Non-Exclusivity of rights.  Except as otherwise specifically provided
therein, (i) nothing in this Agreement shall prevent
or limit the Executive's continuing or future participation in any benefit, bonus,
incentive, equity or other plan or program provided by the Corporation and for
which the Executive may qualify, nor (ii) shall anything herein limit or
otherwise prejudice such rights as the Executive may have under any other
currently existing plan, agreement as to employment or severance from
employment with the Corporation or statutory entitlements, provided, that to
the extent such amounts are paid under paragraph 4.2(a) hereof or otherwise,
such amounts shall be offset against any amounts that the Executive is entitled
to under any other program, plan, agreement or statute, including without
limitation the Employment Agreement. Amounts that are vested benefits or which
the Executive is otherwise entitled to receive under any plan or program of the
Corporation, at or subsequent to the date of termination shall be payable in
accordance with such plan or program, except as otherwise specifically provided
herein or in the Employment Agreement.

17.    Not an Agreement of Employment.  This is not an agreement assuring employment
and the Corporation reserves the right to terminate the Executive's employment
at any time with or without cause, subject to the Employment Agreement and the
payment provisions hereof if such termination is after, or within three (3) months
prior to, a Change of Control, as defined herein. The Executive acknowledges
that he is aware that he shall have no claim against the Corporation hereunder
or for deprivation of the right to receive the amounts hereunder as a result of
any termination that does not specifically satisfy the requirements hereof or
as a result of any other action taken by the Corporation. The foregoing shall
not affect the Executive's rights under any other agreement with the
Corporation.

18.   Governing Law.  This Agreement shall be construed,
interpreted, and governed in accordance with the laws of the Province of
Quebec.

19.   English Language.  The parties hereto declare that they require
that this Agreement and any related documents be drawn up and executed in
English.

 

 

11

 

            Les parties déclarent qu'elles requièrent que cette convention ainsi que
tous documents relatifs à cette convention soient rédigés et exécutés en
anglais.

IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
duly executed and the Executive has hereunto set his hand as of the date first
set forth above.

                                                                                    

  	ALCAN INC.
	  
	By:       _______________________ 
	  
	_______________________
	Travis
Engen

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