Document:

exv4w2

 

Exhibit 4.2

 

For value received, the undersigned hereby sell(s), assign(s) and transfer(s) unto

Pour valeur reçue, le soussigné vend, cède et transporte à

(Print name(s) of person(s) to whom the securities are being transferred and the address for the
register /

Écrivez le nom de la ou des personnes à qui les titres sont transférés et l’adresse pour le
registre)

	 	 	 
	 
	 	 	shares /
	 	 	actions

(number of shares if blank, deemed to be all /

nombre d’actions — s’il n’y a rien d’écrit, la totalité est présumée)

of the Company represented by this certificate, and hereby irrevocably constitutes and appoints
CIBC Mellon Trust Company the attorney of the undersigned to transfer the said securities with full
power of substitution in this matter:

de la société représentées par le présent certificat et constitue et nomme irrévocablement par les
présentes la Compagnie Trust CIBC Mellon procureur du ou des soussignés pour transférer lesdits
titres avec plein pouvoir de substitution à cet égard:

	 	 	 	 	 
	Dated /

Fait le
	 	 	 	 
	 
	 	 	 	 
	Signature Guarantee(s)* /

Garantie des signatures*

(the transfer cannot be processed without
acceptable guarantees of all signatures /

le transfert ne peut être effectué sans une
garantie acceptable de chaque signature)	 	Transferor(s) Signature(s)* /

Signature du ou des cédants*
	 	 
	 	 
	 	 

* For transfers signed by the registered holder(s), their signature(s) must correspond with the
name(s) on the certificate in every particular, without any changes.

In addition, every signature must be Signature Guaranteed by a Canadian Schedule 1 chartered bank,
a major trust company in Canada, or a member of one of the recognized medallion programs —
Securities Transfer Agents Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) or
New York Stock Exchange, Inc. Medallion Signature Program (MSP).

* Pour les transferts signés par le ou les détenteurs inscrits, chaque signature doit correspondre
exactement avec le ou les noms sur le ou les certificats, sans aucun changement.

Aussi, chaque signature doit être garantie par une banque à charte de l’Annexe 1, une importante
société de fiducie au Canada, ou un membre de l’un des programmes de garantie Medallion —
Securities Transfer Agents Medallion Program (STAMP), Stock
Exchanges Medallion Program (SEMP) ou New York Stock Exchange, Inc Medallion Signature Program
(MSP).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Until the Separation Time (as
defined in the Shareholder Rights Agreement referred to below), this
certificate also evidences and entitles the holder hereof to certain
Rights as set forth in a Shareholder Rights Agreement made as of
December      , 2004, The
“Rights Agreement”) between Novelis Inc.
(the “Corporation”) and CIBC Mellon Trust Company, as
Rights Agent, the terms of which are incorporated herein by reference
and a copy of which is on file at the principal executive offices of
the Corporation. Under certain circumstances, as set forth in the
Rights Agreement, such Rights may be amended, redeemed, may expire,
may become void if, in certain cases, they are “Beneficially
Owned” by an “Acquiring Person” (as such terms are
defined in the Rights Agreement) or a transferee thereof, or may be
evidenced by separate certificates and may no longer be evidenced by
this certificate. The Corporation will mail or arrange for the
mailing copy of the Rights Agreement to the holder of this
certificate without charge within five days after the receipt of a
written request therefore.

Jusqu’à a
libération des Droits (qui est définie dans la convention
de Droits pour les actionnaires mentionnée ci-dessous) le
présent certificat atteste que son détenteur jouit de
certains droits stipulés dans une convention de Droits pour les
actionnaires passée le      
décembre 2004 (la « convention de Droits »)
entre Novelis Inc.
(la « société ») et Compagnie
Trust CIBC Mellon (l’« agent d’émission des
Droits »); les conditions de cette convention, dont copie
est déposée au bureau principal de la direction de la
société, sont incorporées aux présentes par
renvoi. Dans certaines circonstances stipulées dans la
convention de Droits, ces Droits peuvent être modifiés,
rachetés, peuvent expirer, peuvent devenir nuls si, dans
certains cas, ils sont la « propriété
réelle » d’un « acquéreur
important » (selon les définitions de ces expressions
dans la convention de Droits) ou d’un cessionnaire de ce
dernier, ou peuvent être représentés par des
certificats séparés, auquel cas le présent certificat
n’en atteste plus l’existence. La société postera
ou fera poster, sans frais, une copie de la convention de Droits au
détenteur du présent certificat dans les cinq jours suivant
la réception d’une demande écrite à cet
effet.

 

 

 

 

 

 

	 	 	 
	SECURITY INSTRUCTIONS -
INSTRUCTIONS DE SÉCURITÉ
	THIS IS WATERMARKED PAPER,
DO NOT ACCEPT WITHOUT NOTING WATERMARK. HOLD TO LIGHT TO VERIFY
WATERMARK.
	PAPIER FILIGRANÉ, NE PAS
ACCEPTER SANS VÉRIFIER LA PRÉSENCE
DU FILIGRANE. POUR CE
FAIRE, PLACER À LA LUMIÈRE.<PAGE>
                                                                   Exhibit 10.5

                             METAL SUPPLY AGREEMENT

                                     between

                                  NOVELIS INC.

                                 (as Purchaser)

                                       and

                                   ALCAN INC.

                                  (as Supplier)

                     FOR THE SUPPLY OF SHEET INGOT IN EUROPE

     Dated December ____, 2004, with effect as of the Effective Date

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>   <C>                                                                                                         <C>

1.    DEFINITIONS AND INTERPRETATION............................................................................   1

2.    METAL.....................................................................................................   8

3.    FORCE MAJEURE.............................................................................................  16

4.    ASSIGNMENT................................................................................................  18

5.    TERM AND TERMINATION......................................................................................  18

6.    EVENTS OF DEFAULT.........................................................................................  19

7.    REPRESENTATIONS AND WARRANTIES............................................................................  20

8.    CONFIDENTIALITY...........................................................................................  20

9.    DISPUTE RESOLUTION........................................................................................  20

10.   MISCELLANEOUS.............................................................................................  21

</Table>

SCHEDULES

<Table>
<S>     <C>

1        Metal Specifications

2.       Contract Year 1 Quantities

3.       Shipment and Delivery Performance

</TABLE>

<PAGE>

                             METAL SUPPLY AGREEMENT

THIS AGREEMENT entered into in the City of Montreal, Province of Quebec, is
dated December _____, 2004, with effect as of the Effective Date.

BETWEEN:            NOVELIS INC., a corporation incorporated under the Canada
                    Business Corporations Act ("NOVELIS" or the "PURCHASER");

AND:                ALCAN INC., a corporation organized under the Canada
                    Business Corporations Act ("ALCAN" or the "SUPPLIER").

RECITALS:

WHEREAS Alcan and Novelis have entered into a Separation Agreement pursuant to
which they set out the terms and conditions relating to the separation of the
Separated Businesses from the Remaining Alcan Businesses (each as defined
therein), such that the Separated Businesses are to be held, as at the Effective
Time (as defined therein), directly or indirectly, by Novelis (such agreement,
as amended, restated or modified from time to time, the "SEPARATION AGREEMENT").

<PAGE>

                                     - 2 -

WHEREAS the Supplier and its Affiliates wish to supply, and the Purchaser and
its Affiliates wish to purchase, subject to the terms and conditions of this
Agreement, Metal (as defined below) required by the Purchaser and its Affiliates
at the Delivery Sites (as defined below).

WHEREAS the Parties have entered into this Agreement as principals and as agents
for their Subsidiaries in order to set forth such terms and conditions.

NOW THEREFORE, in consideration of the mutual agreements, covenants and other
provisions set forth in this Agreement, the Parties hereby agree as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      DEFINITIONS

         For the purposes of this Agreement, the following terms and expressions
         and variations thereof shall, unless another meaning is clearly
         required in the context, have the meanings specified or referred to in
         this Section 1.1:

         "AFFECTED PARTY" has the meaning set forth in Section 3.1.

         "AFFILIATE" of any Person means any other Person that, directly or
         indirectly, controls, is controlled by, or is under common control with
         such first Person as of the date on which or at any time during the
         period for when such determination is being made. For purposes of this
         definition, "CONTROL" means the possession, directly or indirectly, of
         the power to direct or cause the direction of the management and
         policies of such Person, whether through the ownership of voting
         securities or other interests, by contract or otherwise and the terms
         "CONTROLLING" and "CONTROLLED" have meanings correlative to the
         foregoing.

         "AGREEMENT" means this Metal Supply Agreement, including all of the
         Schedules hereto.

         "ALCAN" means Alcan Inc.

         "ALCAN GROUP" means Alcan Inc. and its Subsidiaries from time to time
         on and after the Effective Date.

         "ANNUAL BASE QUANTITY" means

         (i)    in respect of Contract Year 1, *** Tonnes,

         (ii)   in respect of Contract Year 2, *** Tonnes,

         (iii)  in respect of Contract Year 3, *** Tonnes, and

         (iv)   in respect of each of Contract Year 4 to ****, inclusive, such
                amount, in Tonnes, in respect of each Contract Year, (a) as may
                be

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>
                                     - 3 -

                agreed to by the Parties during the first 6 months of Contract
                Year 2 or (b) if the Parties have failed to reach agreement with
                respect to such amount during the first 6 months of Contract
                Year 2, and a Party has given 18 months notice prior to the
                commencement of a Contract Year to the other Parties hereto that
                it wishes to reduce the Annual Base Quantity by no more than 25%
                of the then current Annual Base Quantity, the amount so notified
                by such Party, or (c) if the Parties have failed to reach
                agreement during the first 6 months of Contract Year 2, and no
                Party has given a notice in accordance with (b) above, an amount
                which is equal to the Annual Base Quantity in respect of the
                preceding Contract Year, subject to reduction in accordance with
                Section 2.1(c).

         "ANNUAL ORDER QUANTITY" means, in respect of any Contract Year, an
         amount in Tonnes, which is equal to or greater than 90% of the Annual
         Base Quantity for such Contract Year, and less than or equal to the
         Annual Base Quantity for such Contract Year, unless otherwise agreed by
         the Parties, which amount is notified by the Purchaser to the Supplier
         pursuant to Section 2.6.

         "APPLICABLE LAW" means any applicable law, rule or regulation of any
         Governmental Authority or any outstanding order, judgment, injunction,
         ruling or decree by any Governmental Authority.

         "APPLICABLE LME DISCOUNT PERCENTAGE" means, for each of ***, inclusive,
         ***, and for any Contract Year from and after ***, such
         percentage as may be agreed by the Parties in connection with any
         extension of the Term pursuant to Section 5.3.

         "BILL OF LADING DATE" means the date of the bill of lading representing
         Metal cargo to be delivered under this Agreement.

         "BUSINESS CONCERN" means any corporation, company, limited liability
         company, partnership, joint venture, trust, unincorporated association
         or any other form of association.

         "BUSINESS DAY" means any day excluding (i) Saturday, Sunday and any
         other day which, in the City of Montreal (Canada) or in the City of New
         York (United States), is a legal holiday, or (ii) a day on which banks
         are authorized by Applicable Law to close in the city of Montreal
         (Canada) or in the city of New York (United States).

         "CIP" means, to the extent not inconsistent with the provisions of this
         Agreement, CIP as defined in Incoterms 2000, published by the ICC,
         Paris, France, as amended from time to time.

         "COMMERCIALLY REASONABLE EFFORTS" means the efforts that a reasonable
         and prudent Person desirous of achieving a business result would use in
         similar circumstances to ensure that such result is achieved as
         expeditiously as possible in the context of commercial relations of the
         type contemplated in this Agreement;

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>
                                     - 4 -

         provided, however, that an obligation to use Commercially Reasonable
         Efforts under this Agreement does not require the Person subject to
         that obligation to assume any material obligations or pay any material
         amounts to a Third Party or take actions that would reduce the benefits
         intended to be obtained by such Person under this Agreement.

         "CONSENT" means any approval, consent, ratification, waiver or other
         authorization.

         "CONSULTATION PERIOD" has the meaning set forth in Section 2.5.

         "CONTRACT PRICE" means, for each Tonne of Metal sold and purchased
         hereunder in any month:

         (a)    in respect of Metal supplied to a Delivery Site outside of the
                United Kingdom, the aggregate of the following:

                (i)    the LME 3-Month Aluminum Price for the month preceding
                       the month of the Bill of Lading Date;

                (ii)   minus the Applicable LME Discount Percentage of the LME
                       3-Month Aluminum Price;

                (iii)  plus the Logistics Cost;

                (iv)   plus the Product Premium;

                (v)    plus the EC Duty Paid Premium applicable to the month of
                       the Bill of Lading Date; and

                (vi)   plus, in the case of delivery from a Supplier Facility
                       located outside of Continental Europe, the cost of
                       freight and insurance to the Delivery Site.

         (b)    in respect of Metal supplied to a Delivery Site in the United
                Kingdom, the aggregate of:

                (i)    the LME 3-Month Aluminum Price for the Month preceding
                       the month of the Bill of Lading Date;

                (ii)   minus the Applicable LME Discount Percentage of the LME
                       3-Month Aluminum Price;

                (iii)  plus the Logistics Cost;

                (iv)   plus the Product Premium;

                (v)    plus the EC Duty Paid Premium applicable to the month
                       prior to the month of the Bill of Lading Date; and

<PAGE>
                                     - 5 -

                (vi)   minus, in the case of supply of Metal to Rogerstone, the
                       Rogerstone Discount;

         "CONTRACT YEAR" means (a) initially the period commencing on the
         Effective Date and ending on the last day of the calendar year in which
         the Effective Date occurs (such initial period being "CONTRACT YEAR 1")
         and (b) thereafter, each successive period consisting of twelve
         calendar months (the first such period being "CONTRACT YEAR 2"),
         provided that the final Contract Year shall end on the last day of the
         Term.

         "DEFAULT INTEREST RATE" means the rate of interest charged by Supplier
         for late payments in accordance with Supplier's normal commercial
         practice, as set forth in invoices issued by Supplier hereunder.

         "DEFAULTING PARTY" has the meaning set forth in Section 6.

         "DELIVERY SITE" means any of the following facilities of the Purchaser,
         as specified, in respect of each shipment of Metal hereunder in the
         Firm Orders provided by the Purchaser hereunder:

         (a)    the following locations in the United Kingdom:

                (i)    Rogerstone;

                (ii)   Bridgnorth; and

         (b)    the following locations in continental Europe:

                (i)    Norf;

                (ii)   Sierre;

                (iii)  Annecy; and

         (c)    such other facilities of the Purchaser as may be agreed by the
                Parties.

         "DISPUTES" has the meaning set forth in Section 9.1.

         "DOLLARS" or "$" means the lawful currency of the United States of
         America.

         "EC DUTY PAID PREMIUM" means for any calendar month, the arithmetic
         average of the EC Duty Paid Premium for primary high grade aluminum, as
         published by Metal Bulletin on each day during the calendar month
         preceding such calendar month or as otherwise determined pursuant to
         Section 2.10(c).

         "EFFECTIVE DATE" means the "Effective Date" as defined in the
         Separation Agreement.

<PAGE>
                                     - 6 -

         "ESTIMATED ANNUAL CAPACITY" has the meaning set out in Section
         2.4(b)(i), subject to any adjustment pursuant to Section 2.5.

         "ESTIMATED ANNUAL ORDER QUANTITY" has the meaning set out in Section
         2.3(b)(i), subject to any adjustment pursuant to Section 2.5.

         "ESTIMATED MONTHLY CAPACITY" has the meaning set out in Section
         2.4(b)(ii), subject to any adjustment pursuant to Section 2.5.

         "ESTIMATED MONTHLY CAPACITY UPDATE" has the meaning set forth in
         Section 2.7(a).

         "ESTIMATED MONTHLY DEMAND" has the meaning set out in Section
         2.3(b)(ii), subject to any adjustment pursuant to Section 2.5, 2.6(ii)
         or Section 2.7(b)(ii).

         "EUROS" means the lawful currency of the member states of the European
         Union that adopt the single currency in accordance with the Treaty
         Establishing the European Community, as amended by the Treaty on
         European Union.

         "EVENT OF DEFAULT" has the meaning set forth in Section 6.

         "FIRM ORDER" has the meaning set forth in Section 2.7(b)(i).

         "FORCE MAJEURE" has the meaning set forth in Section 3.2.

         "GOVERNMENTAL AUTHORITY" means any court, arbitration panel,
         governmental or regulatory authority, agency, stock exchange,
         commission or body.

         "GOVERNMENTAL AUTHORIZATION" means any Consent, license, certificate,
         franchise, registration or permit issued, granted, given or otherwise
         made available by, or under the authority of, any Governmental
         Authority or pursuant to any Applicable Law.

         "ICC" means the International Chamber of Commerce.

         "INCOTERMS 2000" means the set of international rules updated in the
         year 2000 for the interpretation of the most commonly used trade terms
         for foreign trade, as published by the ICC.

         "LIABILITIES" has the meaning set forth in the Separation Agreement.

         "LME" means the London Metal Exchange.

         "LME 3-MONTH ALUMINUM PRICE" for any calendar month means the
         arithmetic average of the LME 3-Month seller's and buyer's price for
         primary high grade aluminum, as published in Metal Bulletin on each day
         during the calendar month preceding such calendar month or as otherwise
         determined pursuant to Section 2.10(b). For avoidance of doubt, the LME
         3-Month Aluminum Price for the

<PAGE>
                                     - 7 -

         month of April will be based on aluminum prices published during the
         month of March.

         "LOGISTICS COST" means o. "METAL" means aluminum sheet ingot having the
         specifications set forth in SCHEDULE 1.

         "MINIMUM ANNUAL PURCHASE QUANTITY" means an amount in Tonnes in respect
         of each Contract Year, equal to ***% of the Annual Order Quantity for
         such Contract Year.

         "MONTH M1" has the meaning set forth in Section 2.7(b)(i).

         "MONTHLY OFFTAKE QUOTE" has the meaning set out in Section 2.7(b).

         "NOVELIS" means Novelis Inc.

         "NOVELIS GROUP" means Novelis Inc. and its Subsidiaries from time to
         time on and after the Effective Date.

         "PARTY" means each of the Purchaser and the Supplier as a party to this
         Agreement and "PARTIES" means both of them.

         "PERSON" means any individual, Business Concern or Governmental
         Authority.

         "PRODUCT PREMIUM" means o. "PURCHASER" has the meaning set forth in the
         Preamble to this Agreement.

         "ROGERSTONE DISCOUNT" means in respect of each Tonne of Metal supplied
         to Purchaser's Rogerstone facility, $***.

         "SALES TAX" means any sales, use, consumption, goods and services,
         value added or similar tax, duty or charge imposed by a Governmental
         Authority pursuant to Applicable Law.

         "SEPARATION AGREEMENT" has the meaning set out in the Preamble to this
         Agreement.

         "SPECIFICATIONS" means specifications for Metal as set out in SCHEDULE
         1.

         "SUBSIDIARY" of any Person means any corporation, partnership, limited
         liability entity, joint venture or other organization, whether
         incorporated or unincorporated, of which a majority of the total voting
         power of capital stock or other interests entitled (without the
         occurrence of any contingency) to vote in the election of directors,
         managers or trustees thereof, is at the time owned or controlled,
         directly or indirectly, by such Person.

         "SUPPLIER" has the meaning set forth in the Preamble to this Agreement.

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>
                                     - 8 -

         "SUPPLIER FACILITIES" means any of the facilities of the Supplier
         located at Dunquerque, Isal, Lochaber, Lynemouth, Vlissingen, St. Jean,
         Lannemezan, or Alucam, or such other facilities as may be agreed by the
         Purchaser in accordance with Section 2.1(b).

         "SUPPLY SCHEDULE" means in respect of each Contract Year, the notice of
         Estimated Annual Capacity for such Contract Year and Estimated Monthly
         Capacity in respect of each calendar month therein, delivered by the
         Supplier pursuant to Section 2.4(b).

         "TERM" has the meaning set forth in Section 5.2.

         "TERMINATING PARTY" has the meaning set forth in Section 6.

         "THIRD PARTY" means a Person that is not a Party to this Agreement,
         other than a member or an Affiliate of Alcan Group or a member or an
         Affiliate of Novelis Group.

         "THIRD PARTY CLAIM" has the meaning set forth in the Separation
         Agreement.

         "TONNE" means 1,000 kilograms.

1.2      CURRENCY

         All references to currency herein are to Euros unless otherwise
         specified. All currency conversions required for purposes of
         calculating the applicable Contract Price and various components
         thereof as well as any other amounts payable hereunder shall be made
         utilizing the monthly average of the daily spot Euro/Dollar exchange
         rate of the European Central Bank adjusted by the swap points on three-
         month forward purchase contracts for the relevant currency.

1.3      VIENNA CONVENTION

         The Parties agree that the terms of the United Nations Convention
         (Vienna Convention) on Contracts for the International Sale of Goods
         (1980) shall not apply to this Agreement or the obligations of the
         Parties hereunder.

2.       METAL

2.1      SUPPLY AND SALE BY THE SUPPLIER

         (a)    Subject to the terms and conditions of this Agreement, beginning
                on the Effective Date and continuing throughout the Term of this
                Agreement, the Supplier shall supply and sell to the Purchaser
                "CIP the applicable Delivery Site" the quantities of Metal
                determined in accordance with this Agreement.
<PAGE>
                                     - 9 -

         (b)    The Supplier shall supply Metal from a Supplier Facility of the
                Supplier's choosing or from such other sources and locations as
                may be agreed by the Parties. If the Supplier wishes at any time
                to deliver Metal hereunder to the Purchaser from a source other
                than the facilities named in the definition of "Supplier
                Facilities" herein, it may do so provided such Metal complies
                with the Specifications and the Purchaser has confirmed in
                writing that the source of such Metal is acceptable to it. The
                Purchaser shall act reasonably in providing such confirmation.

         (c)    The quantity of Metal which the Purchaser agrees to purchase and
                the Supplier agrees to supply hereunder shall be subject to
                reduction on a pro rata basis in the event the Supplier provides
                notice to the Purchaser that one of the Supplier Facilities
                owned by the Supplier has been temporarily or permanently shut
                down by the Supplier, provided such shut down has occurred as a
                result of a good faith decision by the Supplier that the
                continued operation of such Supplier Facility would be
                uneconomic or otherwise unviable or non-value maximizing for the
                Supplier. This reduction shall be for such quantity as may be
                agreed by the Parties and, failing agreement, shall be for such
                quantity as is equal to the Estimated Annual Capacity for the
                applicable Contract year multiplied by the annual reduction
                capacity of the Supplier Facilities that have been shut down,
                and divided by the total annual production capacity of all
                Supplier Facilities before giving effect to the shut down.

2.2      PURCHASE BY THE PURCHASER

         Subject to the terms and conditions of this Agreement, beginning on the
         Effective Date and continuing throughout the Term of this Agreement,
         the Purchaser shall purchase and take delivery from the Supplier "CIP
         the applicable Delivery Site" the quantities of Metal determined in
         accordance with this Agreement.

2.3      NOTIFICATION OF ESTIMATED QUANTITIES OF METAL REQUIRED BY THE PURCHASER

         (a)    The Purchaser agrees to purchase and the Supplier agrees to
                supply, in each Contract Year, in accordance with the terms
                hereof, a quantity of Metal which is no less than the Minimum
                Annual Purchase Quantity for such Contract Year.

         (b)    With respect to the purchase of Metal hereunder in any Contract
                Year, the Purchaser shall provide to the Supplier no later than
                on September 1 of the Contract Year preceding such Contract
                Year:

                (i)    an estimate, in Tonnes, of the Annual Order Quantity (the
                       "ESTIMATED ANNUAL ORDER QUANTITY" for such Contract
                       Year); and

                (ii)   an estimate, in Tonnes, of the quantity of Metal required
                       for each month in such Contract Year (the "ESTIMATED
                       MONTHLY DEMAND"), provided (1) the amount for each month
                       shall be less than or equal to ***% of the Estimated
                       Annual Order Quantity for such Contract Year divided by

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>
                                     - 10 -

                       12, and greater than or equal to ***% (or, for no more
                       than 2 months ***%) of the Estimated Annual Order
                       Quantity divided by 12, and (2) the aggregate of all
                       Estimated Monthly Demand amounts for all months in such
                       Contract Year shall equal the Estimated Annual Order
                       Quantity notified pursuant to paragraph (i) above.

                The Estimated Annual Order Quantity for Contract Year 1 and the
                Estimated Monthly Demand for each month in Contract Year 1, are
                set out in SCHEDULE 2.

2.4      NOTIFICATION OF ESTIMATED QUANTITIES OF METAL SUPPLIED BY THE SUPPLIER

         (a)    The Supplier shall have no obligation to supply Metal hereunder
                in a Contract Year in excess of an amount equal to the Annual
                Base Quantity for such Contract Year, unless otherwise agreed by
                the Parties.

         (b)    With respect to the supply of Metal hereunder in any Contract
                Year, the Supplier shall provide to the Purchaser no later than
                September 15 of the Contract Year preceding such Contract Year:

                (i)    an estimate, in Tonnes, of the Supplier's supply capacity
                       of Metal for such Contract Year (the "ESTIMATED ANNUAL
                       CAPACITY"), which amount shall be greater than or equal
                       to the Annual Base Quantity for such Contract Year, and

                (ii)   an estimate, in Tonnes, of the Supplier's supply capacity
                       of Metal for each month in such Contract Year (the
                       "ESTIMATED MONTHLY CAPACITY"), provided that the
                       Estimated Monthly Capacity in respect of each month shall
                       be equal to or greater than the Estimated Monthly Demand
                       for such month notified by the Purchaser in accordance
                       with Section 2.3(b)(ii).

                In determining the Estimated Annual Capacity and the Estimated
                Monthly Capacity, in each case, the Supplier shall take into
                account actual operating days in the relevant Contract Year or
                month, as applicable (taking into account planned shutdowns of
                the Supplier Facilities), existing commitments of the Supplier
                for supply to other Persons, and seasonal factors affecting the
                Supplier's capacity.

                The Estimated Annual Capacity for Contract Year 1 and the
                Estimated Monthly Capacity for each month in Contract Year 1 are
                set out in SCHEDULE 2.

2.5      CHANGES TO ESTIMATES

         In respect of the purchase and supply of Metal hereunder in any
         Contract Year, the Purchaser and Supplier agree to consult during the
         period September 1 to October 31 in the year preceding such Contract
         Year (the "CONSULTATION PERIOD") with respect to offtake and capacity
         issues effecting the estimates of purchase requirements and

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>
                                     - 11 -

         supply capacity provided by the Purchaser and Supplier, respectively,
         pursuant to Sections 2.3 and 2.4. During such Consultation Period the
         Purchaser may propose to purchase a quantity of Metal in such Contract
         Year in excess of 105% of the Annual Base Quantity for such Contract
         Year and/or to modify the Estimated Annual Order Quantity or Estimated
         Monthly Demand amounts notified by the Purchaser in respect of such
         Contract Year, provided that the Supplier shall be under no obligation
         to agree to such proposal by the Purchaser. During such Consultation
         Period the Supplier may propose a revised Supply Schedule provided that
         the Purchaser shall be under no obligation to agree to such revised
         Supply Schedule, and the Supplier shall be under no obligation to
         comply with the terms of such revised Supply Schedule, unless the
         Parties agree to such changes. The Parties shall consult and negotiate
         in good faith during the Consultation Period with respect to any such
         matters proposed by the Purchaser or Supplier, as applicable, and will
         discuss planned maintenance shutdowns at any of the Delivery Sites or
         the Supplier Facilities and if possible, schedule down-time events
         relating to such plant maintenance shutdowns for times which are
         mutually agreeable to the Purchaser and the Supplier with a view to
         avoiding production disruption at the Supplier Facilities or inventory
         build-ups at any of the Supplier Facilities or the Delivery Sites.

2.6      NOTIFICATION OF ANNUAL ORDER QUANTITY

         In respect of the purchase and supply of Metal hereunder in any
         Contract Year, the Purchaser shall deliver to the Supplier on or before
         October 31 in the year preceding such Contract Year, a notice setting
         forth:

                (i)    the firm Annual Order Quantity for such Contract Year,
                       which shall be no less than the Minimum Annual Purchase
                       Quantity calculated for such Contract Year, and

                (ii)   the Estimated Monthly Demand (which may be updated from
                       the amount notified pursuant to Section 2.3(b)(ii)) for
                       each month in such Contract Year provided (1) such amount
                       in respect of each month shall be less than or equal to
                       110% of the Annual Order Quantity for such Contract Year
                       divided by 12, and greater than or equal to 80% (or 75%
                       for no more than 2 months) of the Annual Order Quantity
                       for such Contract Year divided by 12, and (2) such amount
                       in respect of any month does not exceed the Estimated
                       Monthly Capacity notified by the Supplier in respect of
                       such month pursuant to Section 2.4(b)(ii) (as such amount
                       may be adjusted pursuant to Section 2.5).

2.7      MONTHLY QUANTITY MANAGEMENT

         (a)    Throughout the Term of this Agreement, by the first day of each
                month (and if such day is not a Business Day, on the Business
                Day immediately preceding such day), the Supplier shall notify
                the Purchaser of its updated Estimated Monthly Capacity for each
                month (including the month in which such notice is
<PAGE>
                                     - 12 -

                delivered) of the then current Contract Year (such amount
                referred to as the "ESTIMATED MONTHLY CAPACITY UPDATE"), which
                Estimated Monthly Capacity Update:

                (i)    shall not be subject to adjustment in excess of ***%
                       by the Supplier in respect of the first three months in
                       respect of which such notice is sent, such that the
                       amount notified in respect of such months may not be
                       reduced or increased by more than ***% in subsequent
                       Estimated Monthly Capacity Updates delivered under this
                       Section 2.7;

                (ii)   shall be an indicative amount for each of the remaining
                       months in the then current Contract Year included in such
                       notification, which amount may be modified in future
                       Estimated Monthly Capacity Updates delivered pursuant to
                       this Section 2.7; and

                (iii)  shall be, in respect of each month, equal to or greater
                       than the Estimated Monthly Demand most recently notified
                       by the Purchaser in respect of such month pursuant to
                       Section 2.6 (subject to any adjustment pursuant to
                       Section 2.5).

         (b)    Throughout the Term of this Agreement by the 15th day of each
                month (and if such day is not a Business Day, on the Business
                Day immediately preceding such 15th day), the Purchaser shall
                provide to the Supplier a notice (referred to as the "MONTHLY
                OFFTAKE QUOTE") setting forth the following:

                (i)    the quantity of Metal which the Purchaser commits to
                       purchase hereunder in the next succeeding month ("MONTH
                       M1"), which quantity, shall be greater than or equal to
                       ***% of the Annual Order Quantity for the Contract Year
                       in which Month M1 takes place divided by 12, and less
                       than or equal to ***% of the Annual Order Quantity for
                       the Contract Year in which Month M1 takes place divided
                       by 12, and identifying the Delivery Site or Delivery
                       Sites to which such Metal should be delivered (which
                       notification in respect of Month M1 is referred to herein
                       as the "FIRM ORDER" for such month), and the Purchaser
                       hereby agrees that it shall purchase from the Supplier in
                       Month M1 a quantity of Metal which is no less than ***%
                       of the quantity identified in the Firm Order, and no more
                       than ***% than the quantity identified in such Firm
                       Order;

                (ii)   an updated Estimated Monthly Demand for each month
                       subsequent to Month M1 occurring in the Contract Year in
                       which Month M1 occurs, which updated amount:

                       (1)    shall be greater than or equal to ***% (OR ***%
                              for no more than 2 months) of the Annual Order
                              Quantity for the Contract Year in which such month
                              takes place divided by 12, and less than or equal

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>
                                     - 13 -

                              to ***% of the Annual Order Quantity for the
                              Contract Year in which such month takes place
                              divided by 12; and

                       (2)    when aggregated with all quantities of Metal
                              actually purchased by the Purchaser hereunder in
                              all months prior to Month M1 occurring in the same
                              Contract Year, shall be no less than the Minimum
                              Annual Purchase Quantity in respect of such
                              Contract Year,

                provided the Firm Order for Month M1 and each Estimated Monthly
                Demand for each subsequent month shall be no more than the
                Estimated Monthly Capacity Update most recently notified by the
                Supplier in respect of such month.

2.8      WEEKLY QUANTITY MANAGEMENT

         The Parties shall cooperate in coordinating capacity demand and
         shipments within each calendar month. Supplier's weekly capacity shall,
         absent normal course capacity constraints, be within the range of 90%
         to 110% of 1/4 of the Estimated Monthly Capacity Update last provided
         by the Supplier hereunder in respect of the month containing the
         relevant week.

2.9      SUPPLIER'S SHIPPING OBLIGATIONS

         (a)    The Supplier shall supply to the Purchaser, in accordance with
                the terms hereof, in each month, such quantity of Metal as is
                identified by the Purchaser in respect of such calendar month in
                the Firm Order for such month delivered by the Purchaser in
                accordance with Section 2.7(b)(i).

         (b)    Notwithstanding the provisions of Incoterms 2000 and Section
                2.13, the Supplier acknowledges its responsibility to make all
                necessary arrangements for the shipment and insurance for the
                transportation of Metal to the Delivery Site on behalf of the
                Purchaser. The Supplier shall act as the disclosed agent of the
                Purchaser in entering into contracts for hiring carriers and
                obtaining insurance for the shipment of Metal under this
                Agreement. In doing this, the Supplier shall use Commercially
                Reasonable Efforts to obtain competitive freight and insurance
                rates and shall obtain approval from the Purchaser before
                entering into any long term contracts for hiring carriers or
                obtaining insurance on behalf of the Purchaser. The Supplier
                shall use Commercially Reasonable Efforts to ensure that such
                transportation is suitable for delivering the Metal to the
                Delivery Site and complies with insurance requirements.

         (c)    Matters regarding shipment and delivery performance hereunder
                shall be governed by the provisions of SCHEDULE 3.

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>

                                     - 14 -

2.10     PRICE

         (a)    The price payable by the Purchaser to the Supplier for each
                Tonne of Metal sold and purchased pursuant to Sections 2.1 and
                2.2 shall be the Contract Price applicable to the Delivery Site
                to which such Metal is delivered. The date used for calculating
                the Contract Price for any shipment of metal shall be the Bill
                of Lading Date.

         (b)    In the event that (i) LME ceases or suspends trading in
                aluminum, or (ii) Metal Bulletin ceases publication of the
                relevant reference price for determining the LME 3-Month
                Aluminum Price, the Parties shall meet with a view to agreeing
                on an alternative publication or, as applicable, reference
                price. If the Parties fail to reach an agreement within sixty
                (60) days of any Party having notified the other to enter into
                discussions to agree to an alternative publication or reference
                price, then the Chairman of the LME in London, England or his
                nominee shall be requested to select a suitable reference in
                lieu thereof and/or an appropriate amendment to the terms of
                this Section 2.10. The decision of the Chairman or his nominee
                shall be final and binding on the Parties.

         (c)    In the event the EC Duty Paid Premium indicator is discontinued
                due to the reduction or elimination of the 6% import duty on
                unwrought aluminium, the EC Duty Paid Premium shall be replaced
                by a corresponding European Market Premium indicator, if
                published by Metal Bulletin. If no such replacement indicator is
                published, the Parties will enter into good faith negotiations
                in order to amend the definition of EC Duty Paid Premium.

2.11     QUALITY

         (a)    Metal supplied under this Agreement shall comply with the
                Specifications set forth in SCHEDULE 1. The Supplier shall use
                Commercially Reasonable Efforts to notify the Purchaser prior to
                shipment of any Metal that does not meet Specifications. The
                Purchaser shall not be required to accept delivery of any Metal
                that does not meet Specifications. If the Purchaser does not
                accept delivery of Metal not meeting Specifications, the
                Supplier's obligation shall be limited to the assumption of all
                costs for return of such Metal to the Supplier, and for the
                delivery of replacement Metal to the Purchaser. All other
                express or implied warranties, conditions and other terms
                relating to Metal hereunder, including warranties relating to
                merchantability or fitness for a particular purpose, are hereby
                excluded to the fullest extent permitted by Applicable Law.

         (b)    If the Specifications for Metal supplied by the Supplier change,
                the Supplier may propose that the Specifications set forth in
                SCHEDULE 1 be amended to reflect such changes. If the revised
                Specifications do not result in increased costs for the
                processing of such Metal by the Purchaser, the Purchaser shall
                not unreasonably withhold or delay its consent to such changed
                specifications.

<PAGE>
                                     - 15 -

2.12     PAYMENT

         (a)    The Purchaser shall pay the Supplier in full for each shipment
                of Metal meeting the Specifications set out in SCHEDULE 1 or
                otherwise accepted by the Purchaser in accordance with the
                Supplier's commercial invoice within forty-five (45) days of the
                last day of the month of the Bill of Lading Date.

         (b)    If the Purchaser believes that a shipment of Metal does not meet
                the Specifications set out in SCHEDULE 1 and has rejected such
                shipment in a timely manner in accordance with the terms hereof,
                it need not pay the invoice. However, if the Purchaser
                subsequently accepts that the Metal complies with the
                Specifications set out in SCHEDULE 1, the Purchaser shall pay
                the invoice and, if payment is overdue pursuant to Section
                2.12(a), interest in accordance with Section 2.12(c).

         (c)    If any payment required to be made pursuant to Section 2.12(a)
                above is overdue, the full amount shall bear interest at a rate
                per annum equal to the Default Interest Rate calculated on the
                actual number of days elapsed, accrued from and excluding the
                date on which such payment was due, up to and including the
                actual date of receipt of payment in the nominated bank or
                banking account.

         (d)    All amounts paid to the Supplier or the Purchaser hereunder
                shall be paid in Euros, pounds, sterling or Dollars, at the
                option of the Party making the payment, by wire transfer in
                immediately available funds to the account specified by the
                Supplier or Purchaser, as applicable, by notice from time to
                time by one Party to the other hereunder.

         (e)    If any Party fails to purchase or supply, as applicable, any
                quantity of Metal in any month as required under the terms of
                this Agreement, such Party shall be liable to the other Party
                for all direct damages, losses and costs resulting from such
                failure, provided that such other Party shall use its
                Commercially Reasonable Efforts to mitigate such damages, losses
                and costs.

2.13     DELIVERY

         Metal shall be delivered CIP the Delivery Site identified in each Firm
         Order. The delivery of Metal pursuant to this Section 2.13 shall be
         governed by Incoterms 2000, as amended from time to time.

2.14     TITLE AND RISK OF LOSS

         Title to and risk of damage to and loss of Metal shall pass to the
         Purchaser as the Metal is delivered by the Supplier to the carrier.
<PAGE>
                                     - 16 -

2.15     PURCHASER AS PRINCIPAL

         The Purchaser warrants that all Metal to be purchased hereunder shall
         be purchased for Purchaser's own consumption (and, as applicable, that
         of its Subsidiaries). The Purchaser agrees that it shall not re-sell or
         otherwise make available to any Person (other than a Subsidiary) any
         Metal purchased from the Supplier hereunder, other than in respect of
         transactions undertaken in small quantities by the Purchaser to balance
         purchases or Purchaser's metal position.

3.       FORCE MAJEURE

3.1      EFFECT OF FORCE MAJEURE

         No Party shall be liable for any loss or damage that arises directly or
         indirectly through or as a result of any delay in the fulfilment of or
         failure to fulfil its obligations in whole or in part (other than the
         payment of money as may be owed by a Party) under this Agreement where
         the delay or failure is due to Force Majeure. The obligations of the
         Party affected by the event of Force Majeure (the "AFFECTED PARTY")
         shall be suspended, to the extent that those obligations are affected
         by the event of Force Majeure, from the date the Affected Party first
         gives notice in respect of that event of Force Majeure until cessation
         of that event of Force Majeure (or the consequences thereof).

3.2      DEFINITION

         "FORCE MAJEURE" shall mean any act, occurrence or omission (or other
         event), subsequent to the commencement of the Term hereof, which is
         beyond the reasonable control of the Affected Party including, but not
         limited to: fires, explosions, accidents, strikes, lockouts or labour
         disturbances, floods, droughts, earthquakes, epidemics, seizures of
         cargo, wars (whether or not declared), civil commotion, acts of God or
         the public enemy, action of any government, legislature, court or other
         Governmental Authority, action by any authority, representative or
         organisation exercising or claiming to exercise powers of a government
         or Governmental Authority, compliance with Applicable Law, blockades,
         power failures or curtailments, inadequacy or shortages or curtailments
         or cessation of supplies of raw materials or other supplies, failure or
         breakdown of equipment of facilities, the invocation of Force Majeure
         by any party to an agreement under which any Party's operations are
         affected, and any declaration of Force Majeure by the facility
         producing the Metal, or any other event beyond the reasonable control
         of the Parties whether or not similar to the events or occurrences
         enumerated above. In no circumstances shall problems with making
         payments constitute Force Majeure.

3.3      NOTICE

         Upon the occurrence of an event of Force Majeure, the Affected Party
         shall promptly give notice to the other Party hereto setting forth the
         details of the event of Force

<PAGE>
                                     - 17 -

         Majeure and an estimate of the likely duration of the Affected Party's
         inability to fulfil its obligations under this Agreement. The Affected
         Party shall use Commercially Reasonable Efforts to remove the said
         cause or causes and to resume, with the shortest possible delay,
         compliance with its obligations under this Agreement provided that the
         Affected Party shall not be required to settle any strike, lockout or
         labour dispute on terms not acceptable to it. When the said cause or
         causes have ceased to exist, the Affected Party shall promptly give
         notice to the other Party that such cause or causes have ceased to
         exist.

3.4      PRO RATA ALLOCATION

         If the Supplier's supply of any Metal to be delivered to the Purchaser
         is stopped or disrupted by an event of Force Majeure, the Supplier
         shall have the right to allocate its available supplies of such Metal,
         if any, among any or all of its existing customers whether or not under
         contract, in a fair and equitable manner. In addition, where the
         Supplier is the Affected Party, it may (but shall not be required to)
         offer to supply, from another source, Metal of similar quality in
         substitution for the Metal subject to the event of Force Majeure to
         satisfy that amount which would have otherwise been sold and purchased
         hereunder at a price which may be more or less than the price
         hereunder.

3.5      CONSULTATION

         Within thirty (30) days of the cessation of the event of Force Majeure,
         the Parties shall consult with a view to reaching agreement as to the
         Supplier's obligation to provide, and the Purchaser's obligation to
         take delivery of, that quantity of Metal that could not be sold and
         purchased hereunder because of the event of Force Majeure, provided
         that any such shortfall quantity has not been replaced by substitute
         Metal pursuant to the terms above. In the absence of any agreement by
         the Parties, failure to deliver or accept delivery of Metal which is
         excused by or results from the operation of the foregoing provisions of
         this Section 3 shall not extend the Term of this Agreement and the
         quantities of Metal to be sold and purchased under this Agreement shall
         be reduced by the quantities affected by such failure.

3.6      TERMINATION

         (a)    If an event of Force Majeure where the Affected Party is the
                Purchaser shall continue for more than **** consecutive calendar
                months, then the Supplier shall have the right to terminate this
                Agreement.

         (b)    If an event of Force Majeure where the Affected Party is the
                Supplier shall continue for more than *** consecutive calendar
                months, then the Purchaser shall have the right to terminate
                this Agreement.

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>
                                     - 18 -

4.       ASSIGNMENT

4.1      PROHIBITION ON ASSIGNMENTS

         No Party shall assign or transfer this Agreement, in whole or in part,
         or any interest or obligation arising under this Agreement, except as
         permitted by Section 4.2, without the prior written consent of the
         other Party.

4.2      ASSIGNMENT WITHIN ALCAN GROUP OR NOVELIS GROUP

         (a)    With the consent of Novelis, such consent not to be unreasonably
                withheld or delayed, Alcan may elect to have one or more of the
                Persons comprising the Alcan Group assume the rights and
                obligations of the Supplier under this Agreement, provided that

                (i)    Alcan shall remain fully liable for all obligations of
                       the Supplier hereunder, and

                (ii)   the transferee will remain at all times a member of the
                       Alcan Group;

                any such successor to Alcan as a Supplier under this Agreement
                shall be deemed to be the "SUPPLIER" for all purposes of the
                Agreement.

         (b)    With the consent of Alcan, such consent not to be unreasonably
                withheld or delayed, Novelis may elect to have one or more of
                the Persons comprising the Novelis Group assume the rights and
                obligations of the Purchaser under this Agreement, provided that

                (i)    Novelis shall remain fully liable for all obligations of
                       the Purchaser hereunder, and

                (ii)   the transferee will remain at all times a member of the
                       Novelis Group;

                any such successor to Novelis as Purchaser under this Agreement
                shall be deemed to be the "PURCHASER" for all purposes of this
                Agreement.

5.       TERM AND TERMINATION

5.1      EFFECTIVENESS

         This Agreement shall come into effect upon the Effective Date.

5.2      TERM

         The term of this Agreement (the "TERM") shall be from the Effective
         Date until ***, unless terminated earlier or extended pursuant to the
         provisions of this Agreement.

*** Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.
<PAGE>
                                     - 19 -

5.3      EXTENSION

         One year prior to the expiration of the Term, the Parties may, upon the
         request of any Party, meet to negotiate in good faith a possible
         extension of the Term for a further period on terms to be mutually
         agreed (including in respect of quantities and price of Metal to be
         purchased and supplied hereunder). If no such agreement is reached
         between the Parties, the Agreement shall terminate upon expiry of the
         Term.

5.4      TERMINATION

         This Agreement shall terminate:

         (a)    upon expiry of the Term;

         (b)    upon the mutual agreement of the Parties prior to the expiry of
                the Term;

         (c)    pursuant to Section 3.6 as a result of Force Majeure; or

         (d)    upon the occurrence of an Event of Default, in accordance with
                Section 6.

6.       EVENTS OF DEFAULT

         This Agreement may be terminated in its entirety immediately at the
         option of a Party (the "TERMINATING PARTY"), in the event that an Event
         of Default occurs in relation to the other Party (the "DEFAULTING
         PARTY"), and such termination shall take effect immediately upon the
         Terminating Party providing notice to the Defaulting Party of the
         termination.

         For the purposes of this Agreement, each of the following shall
         individually and collectively constitute an "EVENT OF DEFAULT" with
         respect to a Party:

         (a)    such Party defaults in payment of any payments which are due and
                payable by it pursuant to this Agreement, and such default is
                not cured within thirty (30) days following receipt by the
                Defaulting Party of notice of such default;

         (b)    such Party breaches any of its material obligations pursuant to
                this Agreement (other than as set out in paragraph (a) above),
                and fails to cure it within sixty (60) days after receipt of
                notice from the non-defaulting Party specifying the default with
                reasonable detail and demanding that it be cured, provided that
                if such breach is not capable of being cured within sixty (60)
                days after receipt of such notice and the Party in default has
                diligently pursued efforts to cure the default within the sixty
                (60) day period, no Event of Default under this paragraph (b)
                shall occur;

<PAGE>
                                     - 20 -

         (c)    such Party breaches any material representation or warranty, or
                fails to perform or comply with any material covenant,
                provision, undertaking or obligation in or of the Separation
                Agreement;

         (d)    in relation to the Purchaser (1) upon the occurrence of a Non
                Compete Breach (as defined in the Separation Agreement) and the
                giving of notice of the termination of this Agreement by Alcan
                to Novelis pursuant to Section 14.03(b) of the Separation
                Agreement and pursuant to this paragraph of this Agreement, or
                (2) upon the occurrence of a Change of Control Non Compete
                Breach (as defined in the Separation Agreement) and the giving
                of notice of the termination of this Agreement by Alcan to
                Novelis pursuant to Section 14.04(e) of the Separation
                Agreement, in which event the termination of this Agreement
                shall be effective immediately upon Alcan providing Novelis
                notice pursuant to Section 14.03(b) or Section 14.04(e) of the
                Separation Agreement;

         (e)    such Party (i) is bankrupt or insolvent or takes the benefit of
                any statute in force for bankrupt or insolvent debtors, or (ii)
                files a proposal or takes any action or proceeding before any
                court of competent jurisdiction for dissolution, winding-up or
                liquidation, or for the liquidation of its assets, or a receiver
                is appointed in respect of its assets, which order, filing or
                appointment is not rescinded within sixty (60) days; or

         (f)    proceedings are commenced by or against such Party under the
                laws of any jurisdiction relating to reorganization, arrangement
                or compromise.

7.       REPRESENTATIONS AND WARRANTIES

         The Parties hereby reiterate for the purposes of this Agreement those
         representations and warranties set forth in Article VI of the
         Separation Agreement.

8.       CONFIDENTIALITY

         Each of the Parties shall at all times be in full compliance with its
         obligations under Sections 11.07 and 11.08 (Confidentiality) of the
         Separation Agreement.

9.       DISPUTE RESOLUTION

9.1      DISPUTES

         The Master Agreement with respect to Dispute Resolution, effective on
         the Effective Date, among the Parties and other parties thereto shall
         govern all disputes, controversies or claims (whether arising in
         contract, delict, tort or otherwise) ("DISPUTES") between the Parties
         that may arise out of, or relate to, or arise under or

<PAGE>
                                     - 21 -

         in connection with, this Agreement or the transactions contemplated
         hereby (including all actions taken in furtherance of the transactions
         contemplated hereby), or the commercial or economic relationship of the
         Parties relating hereto or thereto.

9.2      CONTINUING OBLIGATIONS

         The existence of a Dispute with respect to this Agreement between the
         Parties shall not relieve either Party from performance of its
         obligations under this Agreement that are not the subject of such
         Dispute.

10.      MISCELLANEOUS

10.1     CONSTRUCTION

         The terms of Section 16.04 (Construction) of the Separation Agreement
         shall apply to this Agreement, mutatis mutandis, as if all references
         therein to the "Agreement" were deemed to be references to this
         Agreement.

10.2     NOTICES

         All notices and other communications under this Agreement shall be in
         writing and shall be deemed to be duly given (a) on the date of
         delivery if delivered personally, (b) on the first Business Day
         following the date of dispatch if delivered by a nationally recognized
         next-day courier service, (c) on the date of actual receipt if
         delivered by registered or certified mail, return receipt requested,
         postage prepaid or (d) if sent by facsimile transmission, when
         transmitted and receipt is confirmed by telephone. All notices
         hereunder shall be delivered as follows:

         IF TO THE PURCHASER, TO:

         NOVELIS INC.
         Suite 3800
         Royal Bank Plaza, South Tower
         P.O. Box 84
         200 Bay Street
         Toronto, Ontario
         M5J 2Z4

         Fax: 416-216-3930

         Attention: Chief Executive Officer

<PAGE>
                                     - 22 -

         IF TO THE SUPPLIER, TO:

         ALCAN INC.
         1188 Sherbrooke Street West
         Montreal, Quebec
         H3A 3G2
         Fax: 514-848-8115

         Attention: Chief Legal Officer

         Any Party may, by notice to the other Party, change the address or fax
         number to which such notices are to be given.

10.3     GOVERNING LAW

         This Agreement shall be governed by and construed and interpreted in
         accordance with the laws of the Province of Quebec and the laws of
         Canada applicable therein, irrespective of conflict of laws principles
         under Quebec law, as to all matters, including matters of validity,
         construction, effect, enforceability, performance and remedies.

10.4     JUDGMENT CURRENCY

         The obligations of a Party to make payments hereunder shall not be
         discharged by an amount paid in any currency other than Euros, whether
         pursuant to a court judgment or arbitral award or otherwise, to the
         extent that the amount so paid upon conversion to Euros and transferred
         to an account indicated by the Party to receive such funds under normal
         banking procedures does not yield the amount of Euros due, and each
         Party hereby, as a separate obligation and notwithstanding any such
         judgment or award, agrees to indemnify the other Party against, and to
         pay to such Party on demand, in Euros, any difference between the sum
         originally due in Euros and the amount of Euros received upon any such
         conversion and transfer.

10.5     ENTIRE AGREEMENT

         This Agreement, the Separation Agreement and schedules, exhibits,
         annexes and appendices hereto and thereto and the specific agreements
         contemplated herein or thereby, contain the entire agreement between
         the Parties with respect to the subject matter hereof and supersede all
         previous agreements, negotiations, discussions, writings,
         understandings, commitments and conversations with respect to such
         subject matter. No agreements or understandings exist between the
         Parties with respect to the subject matter hereof other than those set
         forth or referred to herein or therein.

<PAGE>
                                     - 23 -

10.6     CONFLICTS

         In case of any conflict or inconsistency between this Agreement and the
         Separation Agreement, this Agreement shall prevail.

10.7     SEVERABILITY

         If any provision of this Agreement or the application thereof to any
         Person or circumstance is determined by a court of competent
         jurisdiction to be invalid, void or unenforceable, the remaining
         provisions hereof, or the application of such provision to Persons or
         circumstances or in jurisdictions other than those as to which it has
         been held invalid or unenforceable, shall remain in full force and
         effect and shall in no way be affected, impaired or invalidated
         thereby, so long as the economic or legal substance of the transactions
         contemplated hereby is not affected in any manner adverse to any Party.
         Upon such determination, the Parties shall negotiate in good faith in
         an effort to agree upon such a suitable and equitable provision to
         effect the original intent of the Parties.

10.8     SURVIVAL

         The obligations of the Parties under Sections 2.10, 2.11, 2.12, 8, 9,
         10.3 and 10.8 and liability for the breach of any obligation contained
         herein shall survive the expiration or earlier termination of this
         Agreement.

10.9     EXECUTION IN COUNTERPARTS

         This Agreement may be executed in one or more counterparts, all of
         which shall be considered one and the same agreement, and shall become
         effective when one or more counterparts have been signed by each of the
         Parties and delivered to the other Party.

10.10    AMENDMENTS

         No provisions of this Agreement shall be deemed waived, amended,
         supplemented or modified by any Party, unless such waiver, amendment,
         supplement or modification is in writing and signed by the authorized
         representative of the Party against whom it is sought to enforce such
         waiver, amendment, supplement or modification.

10.11    WAIVERS

         No failure on the part of a Party to exercise and no delay in
         exercising, and no course of dealing with respect to, any right, power
         or privilege under this Agreement shall operate as a waiver thereof,
         nor shall any single or partial exercise of any right, power or
         privilege under this Agreement preclude any other or further exercise
         thereof or the exercise of any other right, power or privilege. The
         remedies provided herein are cumulative and not exclusive of any
         remedies provided by Applicable Law.

<PAGE>

                                     - 24 -

10.12    NO PARTNERSHIP

         Nothing contained herein or in the Agreement shall make a Party a
         partner of any other Party and no Party shall hold out the other as
         such.

10.13    TAXES, ROYALTIES AND DUTIES

         All royalties, taxes and duties imposed or levied on any Metal
         delivered hereunder (other than any taxes on the income of the
         Supplier) shall be for the account of and paid by the Purchaser.

10.14    LIMITATIONS OF LIABILITY

         (a)    Neither Party shall be liable to the other Party for any
                indirect, collateral, incidental, special, consequential or
                punitive damages, lost profit or failure to realize expected
                savings or other commercial or economic loss of any kind,
                howsoever caused, and on any theory of liability (including
                negligence) arising in any way out of this Agreement; provided,
                however, that the foregoing limitations shall not limit any
                Parties' indemnification obligations for Liabilities with
                respect to Third Party Claims as set forth Article IX of the
                Separation Agreement (as if such Article IX was set out in full
                herein by reference to the obligations of the Parties
                hereunder).

         (b)    Sections 9.04, 9.05, 9.06, 9.07 and 9.09 of the Separation
                Agreement shall apply mutatis mutandis with respect to any
                Liability subject to any indemnification or reimbursement
                pursuant to this Agreement.

10.15    PRINCIPALS AND AGENTS

         The Parties agree that each of Novelis and Alcan is entering into this
         Agreement as principal on its own behalf and as agent for its
         Subsidiaries that may, from time to time, wish to purchase or supply,
         as applicable, Metal under the terms of this Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]

<PAGE>

                                     - 25 -

IN WITNESS WHEREOF, the Parties hereto have caused this Metal Supply Agreement
to be executed by their duly authorized representatives.

<TABLE>
<CAPTION>
<S>                                 <C>
                                    NOVELIS INC.

                                    By: _________________________________
                                        Name:
                                        Title:

                                    By: _________________________________
                                        Name:
                                        Title:

                                    ALCAN INC.

</TABLE>
<PAGE>
                                     - 26 -

<TABLE>
<CAPTION>
<S>                                 <C>
                                    By: _________________________________
                                        Name:
                                        Title:

                                    By: _________________________________
                                        Name:
                                        Title:

</TABLE>

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