Document:

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                                                                   Exhibit 10.14

                    TAX SHARING AND DISAFFILIATION AGREEMENT

                                     BETWEEN

                                   ALCAN INC.

                                       AND

                                  NOVELIS INC.

                                       AND

                                ARCUSTARGET INC.

                                       AND

                                ALCAN CORPORATION

                                       AND

                               NOVELIS CORPORATION

                             Dated December o, 2004

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                                TABLE OF CONTENT

<TABLE>

<C>         <S>                                                                                                  <C>

ARTICLE I - INTERPRETATION                                                                                        2

1.01        Definitions...........................................................................................2
1.02        Schedules.............................................................................................9
1.03        Headings..............................................................................................9
1.04        Currency..............................................................................................9

ARTICLE II - REPRESENTATIONS, WARRANTIES AND COVENANTS                                                            9

2.01        Representations, Warranties and Covenants of Alcan in Favour of Novelis...............................9
2.02        Representations, Warranties and Covenants of Novelis in Favour of Alcan and AC.......................11
2.03        Representations, Warranties and Covenants of AC in Favour of AAC and Novelis.........................13
2.04        Representations, Warranties and Covenants of AAC in Favour of AC and Alcan...........................14
2.05        Representations, Warranties and Covenants of Novelis in Favour of AC.................................15
2.06        Survival of Representations, Warranties and Covenants................................................16

ARTICLE III - INDEMNIFICATION                                                                                    17

3.01        Indemnification by Alcan.............................................................................17
3.02        Indemnification by Novelis...........................................................................17
3.03        Indemnification in the Event of Mutual Breach........................................................17
3.04        Indemnification in the Event of a Triggering Event...................................................17
3.05        Indemnification in Other Circumstances...............................................................18
3.06        Event of Last Act....................................................................................18

ARTICLE IV - GENERAL LIABILITY FOR TAXES FOR PRE-SEPARATION PERIOD                                               18

4.01        General Liability....................................................................................18

ARTICLE V - GENERAL LIABILITY FOR TAXES FOR THE POST-SEPARATION PERIOD                                           19

5.01        General Liability....................................................................................19

ARTICLE VI - ALLOCATION OF LIABILITIES FOR TRANSFER TAXES                                                        19

6.01        General Allocation...................................................................................19

ARTICLE VII - YEAR END AND DISAFFILIATION                                                                        19

7.01        Year End.............................................................................................19
7.02        Disaffiliation or Deconsolidation....................................................................19

</TABLE>
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                                      -ii-

<TABLE>

<C>         <S>                                                                                                  <C>

ARTICLE VIII - CONTROL OF TAX CHALLENGES                                                                         22

8.01        Control of Challenge of Tax Claims...................................................................22
8.02        Certain Specified Tax Claims.........................................................................24

ARTICLE IX - COOPERATION, RECORD RETENTION AND CONFIDENTIALITY                                                   24

9.01        Cooperation and Record Retention.....................................................................24
9.02        Confidentiality......................................................................................25

ARTICLE X - TAX RETURNS                                                                                          26

10.01       Tax Returns..........................................................................................26

ARTICLE XI - TRANSFER PRICING ISSUES                                                                             27

11.01       Transfer Pricing Issues..............................................................................27

ARTICLE XII - DISPUTE RESOLUTION                                                                                 28

12.01       Dispute Resolution Agreement to Apply................................................................28

ARTICLE XIII - MISCELLANEOUS                                                                                     28

13.01       Effect on Other Tax Sharing Agreements...............................................................28
13.02       Counterparts.........................................................................................28
13.03       Entire Agreement.....................................................................................29
13.04       Inconsistencies with Separation Agreement............................................................29
13.05       Governing Law........................................................................................29
13.06       Disclaimer Regarding Tax Attributes..................................................................29
13.07       Tax Services.........................................................................................29
13.08       Tax Liability........................................................................................30
13.09       Notices..............................................................................................30
13.10       Interest.............................................................................................31
13.11       Assignability........................................................................................31
13.12       Severability.........................................................................................31
13.13       Waivers of Default...................................................................................31
13.14       Amendments...........................................................................................31
13.15       Further Assurances...................................................................................32
</TABLE>

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TAX SHARING AND DISAFFILIATION AGREEMENT (the "AGREEMENT") entered into in the
City of Montreal, Province of Quebec dated December o, 2004 with effect as of
the Effective Date (as defined below).

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<C>                                     <S>

BETWEEN:                                 ALCAN INC., a corporation organized under the Canada Business Corporations
                                         Act ("ALCAN");

AND:                                     NOVELIS INC., a corporation incorporated under the Canada Business
                                         Corporations Act ("NOVELIS").

AND:                                     ARCUSTARGET INC., a corporation incorporated under the Canada Business
                                         Corporations Act ("ARCUSTARGET");

AND:                                     ALCAN CORPORATION, a corporation incorporated under the laws of the State
                                         of Texas ("AC");

AND:                                     NOVELIS CORPORATION (FORMERLY ALCAN ALUMINUM CORPORATION), a corporation
                                         incorporated under the laws of the State of Texas ("AAC");

</TABLE>

RECITALS:

WHEREAS Alcan Group (as defined below)  currently  conducts the Alcan Businesses
(as defined below);

WHEREAS Alcan intends to effect a spinoff of the Separated Businesses to the
holders of the Alcan Common Shares (as defined below);

WHEREAS such spinoff will be achieved through (i) the Reorganization (as defined
below), by which Alcan will transfer the Separated Businesses to Arcustarget;
(ii) the Arrangement (as defined below), by which the holders of Alcan Common
Shares will become shareholders of Novelis, Arcustarget will become a subsidiary
of Novelis and Novelis and Arcustarget will amalgamate;

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                                      -2-

WHEREAS Alcan and Novelis have agreed on the anticipated tax consequences of the
Reorganization and the Arrangement in the jurisdictions where the transactions
forming part of the Reorganization and the Arrangement will take place (the "TAX
FRAMEWORK");

WHEREAS Alcan intends in particular, and Novelis accepts, that:

(i)      certain transactions forming part of the Reorganization, for Canadian
         income tax purposes, be governed by paragraph 55(3)(b) of the Tax Act
         (as defined below) and sections 85.1 and 86 of the Tax Act, such that
         no gain will be realized by Alcan, Novelis and Alcan Common
         Shareholders (as defined below);

(ii)     the Separation qualify for United States federal income tax purposes as
         a reorganization within the meaning of Section 368(a)(1) of the Code
         (as defined below), pursuant to which no gain or loss will be
         recognized for United States federal income tax purposes by Alcan,
         Novelis, AC, AAC or by the shareholders of Alcan under Section 355 of
         the Code (as defined below) and the related provisions thereunder; and

(iii)    for United States federal income tax purposes, the Separation Agreement
         be treated as a plan of reorganization within the meaning of the Code;

WHEREAS the Reorganization will result in certain entities ceasing to be part of
a group of entities that in certain jurisdictions were filing, lodging or
otherwise submitting their tax returns on a consolidated, combined, unitary,
unity or other similar basis;

WHEREAS the Parties desire, in connection with the Reorganization and the
Arrangement, to (i) give each other certain representations and warranties with
respect to certain tax matters, (ii) confirm that no representations and
warranties are being given with respect to certain other tax matters, (iii) set
out certain rules which shall govern their conduct after the Separation and (iv)
allocate certain obligations with respect to certain tax matters;

WHEREAS Alcan and Novelis have entered into the Separation Agreement (the
"SEPARATION AGREEMENT") and several ancillary agreements, as amended, modified,
supplemented or restated to complete the Separation (as defined below);

WHEREAS  this  Agreement  is an  Ancillary  Agreement  for the  purposes  of the
Separation Agreement;

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

                                   ARTICLE I -
                                 INTERPRETATION

1.01     DEFINITIONS

         The capitalized words and expressions and variations thereof used in
         this Agreement or in its schedules shall have the meanings ascribed to
         them as set forth herein. Capitalized

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                                      -3-

         words and expressions and variations thereof not defined in this
         Agreement shall have the meanings ascribed to them in Schedule 1.01 -
         Definitions of the Separation Agreement.

         "50% INTEREST" means with respect to any corporation (within the
         meaning of the Code) stock or other equity interests of such
         corporation possessing at least 50 percent of the total combined voting
         power of all classes of stock or equity interests entitled to vote or
         at least 50 percent of the total value of shares of all classes of
         stock or equity interests.

         "AAC GROUP" means, for any taxable period, AAC and any Subsidiaries of
         AAC as of that taxable period.

         "AAC" has the meaning set forth in the preamble to this Agreement.

         "AC" has the meaning set forth in the preamble to this Agreement.

         "AC GROUP" means, for any taxable period, AC and its Subsidiaries as of
         that taxable period other than members of the AAC Group.

         "AFFILIATE" means any Person that directly or indirectly through one or
         more intermediaries, Controls, is Controlled by, or is under common
         Control with a specified Person.

         "AGREEMENT" means this Tax Sharing and Disaffiliation Agreement between
         the Parties, including all of the schedules hereto, and as the same may
         be amended from time to time.

         "ALCAN" has the meaning set forth in the preamble to this Agreement.

         "ALCAN BUSINESSES" has the meaning set forth in the Separation
         Agreement.

         "ALCAN CLASS A COMMON SHARES" or "NEW ALCAN COMMON SHARES" means the
         class A common shares of Alcan which Alcan will be authorized to issue
         upon the Arrangement becoming effective and which are to be issued
         under the Arrangement to Alcan Common Shareholders in exchange, in
         part, for Alcan Common Shares, and to be redesignated as Alcan common
         shares once the current Alcan Common Shares have been deleted from the
         share capital of Alcan.

         "ALCAN COMMON SHAREHOLDERS" means the holders of Alcan Common Shares.

         "ALCAN COMMON SHARES" means the voting common shares of Alcan.

         "ALCAN GROUP" means Alcan and its Subsidiaries, whether held directly
         or indirectly; for greater certainty, (i) prior to the Effective Time,
         "Alcan Group" includes Arcustarget Group, (ii) on and after the
         Effective Time, "Alcan Group" excludes Arcustarget Group, and (iii) in
         all circumstances "Alcan Group" excludes Novelis; provided, however,
         that for United States Tax purposes, "Alcan Group" excludes the AAC
         Group for all times after the Date of the U.S. Internal Distribution.

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         "ALCAN INDEMNIFIED PARTIES" has the meaning set forth in Section 3.02
         of this Agreement.

         "ALCAN SPECIAL SHARES" means the non-voting, redeemable, retractable,
         special shares of Alcan, which Alcan will be authorized to issue upon
         the Arrangement becoming effective and which are to be issued pursuant
         to the Arrangement to Alcan Common Shareholders in exchange, in part,
         for the Alcan Common Shares.

         "ALCAN TAX CONSOLIDATED GROUP" means any group of Persons who are
         Affiliates of Alcan and who file, lodge or otherwise submit their Tax
         Returns on a consolidated, combined, unitary, unity or similar basis.

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

         "ARCUSTARGET" had the meaning set forth in the recitals of this
         Agreement.

         "ARCUSTARGET GROUP" means Arcustarget and its Subsidiaries, whether
         held directly or indirectly.

         "ARRANGEMENT" means the proposed arrangement under the provisions of
         section 192 of the CBCA on, and subject to, the terms and conditions
         set forth in the Plan of Arrangement.

         "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).

         "CANADIAN TAX RULING" means the advance income tax ruling received by
         Alcan from the CRA on December 15, 2004 and as may be further revised,
         supplemented or modified at the request of Alcan confirming the
         Canadian federal income tax consequences of certain aspects of the
         Arrangement and certain other transactions.

         "CBCA" means the Canada Business Corporations Act.

         "CLAIM" means any assessment or reassessment, tax inquiry, audit,
         examination, investigation, dispute, litigation or other proceeding
         (including, for United States federal income tax purposes, a notice of
         a potential Claim such as a Form 5701 Notice of Proposed Adjustment),
         made by the CRA, a Provincial Revenue Authority, the IRS or any other
         Taxing Authority, that would result in any Tax liability to an
         Indemnitor.

         "CLOSING AGENDA" means the final closing agenda relating to the
         Reorganization and the Arrangement.

         "CODE" means the United States Internal Revenue Code of 1986, as
         amended.

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         "CONSTITUENT DOCUMENTS" means, with respect to any Person, (a) the
         articles of incorporation, certificate of incorporation, constitution
         or certificate of formation (or the equivalent organizational
         documents) of such Person, (b) the by-laws, operating agreement (or the
         equivalent governing documents) of such Person, (c) any document
         setting forth the manner of election and duties of the directors or
         managing members of such Person (if any) and the designation, amount or
         relative rights, limitations and preferences of any class or series of
         such Person's Stock and (d) with respect to any Person organized under
         the laws of Canada or any province therein, any unanimous shareholder
         agreement.

         "CONTROL" or "CONTROLLED" means, (a) for purposes of paragraph (a) of
         the definition of Triggering Event, control for purposes of the Tax
         Act, and (b) for other any purpose, means the presence of one of the
         following: (i) the legal, beneficial or equitable ownership, directly
         or indirectly, of more than 50% (by vote or value) of the capital or
         voting stock (or other ownership or voting interest, if not a
         corporation) of such Person or (ii) the ability, directly or
         indirectly, to direct the voting of a majority of the directors of such
         Person's board of directors or, if such Person does not have a board of
         directors, a majority of the positions on any similar body, whether
         through appointment, voting agreement or otherwise.

         "CRA" means the Canada Revenue Agency.

         "DATE OF THE U.S. INTERNAL  DISTRIBUTION"  means the date on which the
         U.S. Internal Distribution occurs.

         "DISAFFILIATION DATE" means, (a) for United States Tax purposes the
         Date of the U.S. Internal Distribution, and (b) for other purposes, the
         Effective Date.

         "DISPUTE RESOLUTION AGREEMENT" means the Agreement with Respect to
         Dispute Resolution dated the Effective Date, as amended, restated or
         modified from time to time, and constituting an Ancillary Agreement to
         the Separation Agreement.

         "EFFECTIVE DATE" has the meaning set forth in the Separation Agreement.

         "EFFECTIVE TIME" means 12:01 a.m. Montreal time on the Effective Date.

         "FINAL DETERMINATION" means with respect to any issue (a) a decision,
         judgment, decree or other order by any court of competent jurisdiction,
         which decision, judgment, decree or other order has become final and
         not subject to further appeal, (b) a closing agreement (in the United
         States, whether or not entered into under Section 7121 of the Code) or
         any other binding settlement agreement (in the United States, whether
         or not with the IRS) entered into in connection with or in
         contemplation of an administrative or judicial proceeding by a Taxing
         Authority, or (c) the completion of the highest level of administrative
         proceedings if a judicial contest is not or is no longer available.

         "FIRST GROUP" has the meaning set forth in Section 11.01.

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                                      -6-

         "FISCAL YEAR 2004 STUB PERIOD" shall mean the Fiscal Year 2004 and, if
         the U.S. Internal Distribution occurs after December 31, 2004, the
         period beginning January 1, 2005 and ending on or after the Date of the
         U.S. Internal Distribution.

         "FISCAL YEAR 2004" shall mean the period beginning January 1, 2004 and
         ending December 31, 2004.

         "FISCAL YEAR 2005" shall mean the period beginning January 1, 2005 and
         ending December 31, 2005.

         "FORM 10" shall mean the registration statement on Form 10 (including
         the related information statement) relating to the listing of Novelis
         Shares on the New York Stock Exchange and the related registration of
         the class of equity securities that includes the Novelis Common Shares
         under Section 12(b) of the US Securities Exchange Act of 1934, in the
         form in which it was declared effective by the Securities and Exchange
         Commission.

         "FORMER  MEMBER" has the meaning set forth in paragraph (a) of Section
         7.02.

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

         "GROUP" means AAC Group, AC Group,  Alcan Group,  Arcustarget Group or
         Novelis Group, as the context requires.

         "INDEMNIFIED PARTY" has the meaning set forth in Section 8.01.

         "INDEMNITOR" has the meaning set forth in Section 8.01.

         "IRS" means the United States Internal Revenue Service.

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

         "NOVELIS" means Novelis Inc., a corporation incorporated under the
         CBCA, formed to acquire under the Arrangement and independently carry
         on the Separated Businesses, and to be amalgamated with Arcustarget on
         the Effective Date, and, for greater certainty, includes the
         corporation resulting from the amalgamation of Novelis and Arcustarget
         and any successors thereto.

         "NOVELIS COMMON SHARES" means the voting common shares of Novelis to be
         issued to holders of Alcan Special Shares pursuant to the Arrangement
         in exchange for such Alcan Special Shares.

         "NOVELIS GROUP" means Novelis and its Subsidiaries, whether held
         directly or indirectly; for greater certainty, (i) prior to the
         Effective Time, "Novelis Group" excludes Arcustarget Group, and (ii) on
         and after the Effective Time, "Novelis Group" includes Arcustarget
         Group; provided, however, that for United States Tax purposes, "Novelis

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                                      -7-

         Group" shall include the AAC Group for all times after the Date of the
         U.S. Internal Distribution.

         "NOVELIS  INDEMNIFIED  PARTIES"  has the  meaning set forth in Section
         3.01.

         "PARTIES"  means the parties to this  Agreement  and, in the singular,
         means any of them.

         "PERIOD" means any taxable year or other taxable period.

         "PERSON" shall mean any individual, partnership, joint venture,
         corporation, limited liability company, company, trust, unincorporated
         organization or Governmental Authority.

         "PLAN OF ARRANGEMENT" means the plan of arrangement set out as Schedule
         1.01 - "PA" of the Separation Agreement, as the same may be amended
         from time to time.

         "POST-DISTRIBUTION PERIOD" means any taxable year or other taxable
         period beginning after the Date of the U.S. Internal Distribution and,
         in the case of any Straddle Period, that part of the Straddle Period
         that begins after the close of the Date of the U.S. Internal
         Distribution.

         "PRE-DISTRIBUTION PERIOD" means any taxable year or other taxable
         period that ends on or before the Date of the U.S. Internal
         Distribution and, in the case of any Straddle Period, the part of the
         Straddle Period through the close of the Date of the U.S. Internal
         Distribution.

         "PRE-SEPARATION PERIOD" means (i) any taxable year or other taxable
         period that ends on or before the Effective Time and (ii) for United
         States Tax purposes, a Pre-Distribution Period.

         "POST-SEPARATION PERIOD" means (i) any taxable year or other taxable
         period that begins on or after the Effective Time and (ii) for United
         States Tax purposes, a Post-Distribution Period.

         "PROVINCIAL  REVENUE  AUTHORITY"  has the  meaning  set  forth  in the
         Separation Agreement.

         "REORGANIZATION" means the transactions relating to the transfers of
         property directly or indirectly to Arcustarget set out in Part I of the
         Closing Agenda.

         "SECOND GROUP" has the meaning set forth in Section 11.01.

         "SEPARATED  BUSINESSES"  has the meaning  set forth in the  Separation
         Agreement.

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

         "SEPARATION  AGREEMENT"  has the meaning set forth in the  recitals of
         this Agreement.

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                                      -8-

         "STRADDLE PERIOD" means any taxable year or other taxable period that,
         for the purposes of any Tax Return or any other determination of Taxes
         payable, begins before and ends after the Effective Time.

         "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. In determining whether a
         Subsidiary is a Subsidiary of AAC or AC for any period, AAC and the
         Subsidiaries of AAC shall not be treated as Subsidiaries of AC.

         "TAX" or "TAXES" whether used in the form of a noun or adjective, means
         all forms of taxation, whenever created or imposed, including, but not
         limited to, taxes on or measured by income, capital, franchise, gross
         receipts, sales, use, excise, payroll, personal property (tangible or
         intangible), real property, ad-valorem, value-added, goods and
         services, leasing, leasing use or other taxes, levies, imposts, duties,
         charges or withholdings of any nature whether imposed by a country,
         locality, municipality, government, state, province, federation, or
         other Governmental Authority, including any penalties, fines and
         additions to tax and any interest on tax, compounded or otherwise.

         "TAX ACT" means the Income Tax Act (Canada), as amended.

         "TAX  FRAMEWORK"  has the  meaning  set forth in the  recitals of this
         Agreement.

         "TAX RETURNS" means all reports, returns, information statements,
         questionnaires or other documents or data (whether in printed,
         electronic or other form) required to be filed or that may be filed for
         any period with any Taxing Authority (whether domestic or foreign) in
         connection with any Tax or Taxes (whether domestic or foreign).

         "TAXING AUTHORITY" means any governmental entity imposing Taxes or
         empowered or authorized to administer any Taxes imposed by any country,
         locality, municipality, government, state, province, federation or
         other Governmental Authority.

         "TRANSFER TAXES" means any transfer, sales, use, real property
         transfer, goods and services, value-added, stamp, filing, recordation
         and similar taxes and fees imposed in connection with the
         Reorganization or the Separation.

         "TREASURY REGULATIONS" means the regulations promulgated by the United
         States Treasury Department under the Code.

         "TRIGGERING EVENT" means:

         (a)   for the purposes of the Tax Act, an acquisition of Control of
               Novelis; or

         (b)   for United States federal income tax purposes, any action or
               actions of or involving any Person (other than Alcan or any
               Person that is an Affiliate of Alcan immediately before or
               immediately after such action or actions), or any omission

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                                      -9-

               or omissions of such Person of an action or actions available to
               it, after the Date of the U.S. Internal Distribution, if as a
               result of such action or omission a Final Determination is made
               that the Separation is not Tax-free (i) by failing to qualify as
               a distribution described in Sections 355 and 368(a)(1)(D) of the
               Code, (ii) because any stock or securities of AAC distributed by
               AC in the U.S. Internal Distribution fail to qualify as
               "qualified property" within the meaning of Section 355(c)(2) of
               the Code, or (iii) because Section 355(e) of the Code applies to
               the Separation.

         "U.S.INTERNAL  DISTRIBUTION"  means the distribution by AC to Alcan of
         all  the  shares  of  AAC  in  the  course  of  the   Separation.

         "U.S.SEPARATION DATE", for United States Tax purposes,  means the date
         on which the Separation is completed.

         "UNITED STATES" means the United States of America.

1.02     SCHEDULES

         The following schedules are attached to this Agreement and form part
         hereof:

         Schedule 2.02(i)    Corporate Structure of the Novelis Group
                             After the Separation

         Schedule 8.02       Tax Claims That Are The Sole Responsibility of
                             Alcan

         Schedule 11.01      Transfer Pricing Adjustments

1.03     HEADINGS

         The article, section and paragraph headings contained in this Agreement
         are for reference purposes only and shall not affect in any way the
         meaning or interpretation of this Agreement.

1.04     CURRENCY

         Unless otherwise indicated herein, all Dollar amounts referred to in
         this Agreement refer to the lawful currency of the United States of
         America and all payments must be made in such currency.

                                  ARTICLE II -
                    REPRESENTATIONS, WARRANTIES AND COVENANTS

2.01     REPRESENTATIONS, WARRANTIES AND COVENANTS OF ALCAN IN FAVOUR OF NOVELIS

         (a)   Alcan represents as at the date hereof and warrants to and in
               favour of Novelis as at the date hereof (and acknowledges that
               Novelis is relying upon such representations and warranties in
               connection with the matters contemplated by this Agreement) as
               follows:

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                                      -10-

               (i)  to the best of Alcan's knowledge, there is no "specified
                    shareholder" of Alcan as such expression is defined for the
                    purposes of paragraph 55(3.1)(b) of the Tax Act; and

               (ii) all the facts relating to Alcan that are disclosed in the
                    Canadian Tax Ruling are true and accurate in all material
                    respects;

         (b)   Alcan covenants that it shall not, and that it shall cause each
               other member of the Alcan Group not to, enter into any
               transaction or permit any transaction within its control to occur
               that would cause Alcan or any other member of the Alcan Group
               that is a corporation to cease to be a "specified corporation"
               (within the meaning of the Tax Act) on or prior to the Effective
               Date, except as contemplated in the Canadian Tax Ruling, and
               Alcan and each such member will fulfill, and will cause any
               Person Controlled by it after the Effective Date to fulfill all
               representations or undertakings provided by it to the CRA, to the
               Provincial Revenue Authorities or to tax counsel in connection
               with the Canadian Tax Ruling;

         (c)   Alcan covenants that it shall not, and that it shall cause each
               other member of the Alcan Group not to, take any action, omit to
               take any action or enter into any transaction that could cause
               the Arrangement or any related transaction to be treated in a
               manner inconsistent with the Canadian Tax Ruling or the Tax
               Framework;

         (d)   Alcan covenants that it shall, and that it shall cause each other
               member of the Alcan Group that is required to file Canadian Tax
               Returns, to file such Tax Returns (including, for greater
               certainty, any election forms under section 85 of the Tax Act) in
               accordance with the terms of the Plan of Arrangement and the
               Canadian Tax Ruling following the Effective Date; and

         (e)   Alcan covenants that it shall, and that it shall cause each other
               member of the Alcan Group to, cooperate with Novelis and the
               relevant other members of the Novelis Group in the preparation
               and filing of all elections under the Tax Act as contemplated in
               the Reorganization, the Canadian Tax Ruling, the Plan of
               Arrangement, the Tax Framework and this Agreement (and of any
               similar elections that may be required under applicable
               provincial or foreign legislation); such elections shall be made
               in the form and within the time limits prescribed in the Tax Act
               (or the applicable provincial or foreign legislation); except
               that Alcan may decide, in its sole discretion, to amend or
               late-file such elections, in which case Alcan shall be liable to
               indemnify any Novelis Indemnified Person for any late-filing
               penalties; where an agreed amount is to be included in any such
               election, such amount will be within the range contemplated by
               the Tax Act (or applicable provincial of foreign legislation) and
               will be the amount contemplated by the Canadian Tax Ruling, the
               Plan of Arrangement and this Agreement, where such amount is
               specified therein and, in any other case, will be the amount
               determined by Alcan in its sole discretion.

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                                      -11-

2.02     REPRESENTATIONS, WARRANTIES AND COVENANTS OF NOVELIS IN FAVOUR OF ALCAN
         AND AC

         (a)   Novelis covenants that it shall, and that it shall cause each
               other member of the Novelis Group to, use its commercially
               reasonable efforts and do all things reasonably required of it to
               cause the Reorganization to be completed within the time periods
               contemplated by the Separation Agreement;

         (b)   Novelis covenants that it shall, and that it shall cause each
               other member of the Novelis Group to, use its commercially
               reasonable efforts and do all things reasonably required of it to
               cause the Arrangement to become effective within the time periods
               contemplated by the Separation Agreement;

         (c)   Novelis covenants that it shall not, and that it shall cause each
               other member of the Novelis Group not to, enter into any
               transaction or permit any transaction within its control to occur
               that would cause Alcan or any other member of the Alcan Group
               that is a corporation to cease to be a "specified corporation"
               (within the meaning of the Tax Act) on or prior to the Effective
               Date, except as contemplated in the Canadian Tax Ruling, and
               Novelis and each other member of the Novelis Group will fulfill,
               and will cause any Person Controlled by it after the Effective
               Date to fulfill, all representations or undertakings provided by
               it to the CRA, to the Provincial Revenue Authorities in
               connection with the Canadian Tax Ruling;

         (d)   Novelis covenants that it shall not, and that it shall cause each
               other member of the Novelis Group not to, take any action, omit
               to take any action or enter into any transaction that could cause
               the Reorganization, the Arrangement or any related transaction to
               be treated in a manner inconsistent with the Canadian Tax Ruling
               or the Tax Framework;

         (e)   Novelis covenants that it shall file, and that it shall cause
               each other member of the Novelis Group that is required to file
               Canadian Tax Returns to file, such Tax Returns (including, for
               greater certainty, any election forms under section 85 of the Tax
               Act) in accordance with the terms of the Plan of Arrangement and
               the Canadian Tax Ruling following the Effective Date. To the
               extent allowed by Applicable Law, Novelis shall, and shall cause
               each other member of the Novelis Group to, make adjustments to
               its stated capital and paid-up capital accounts in accordance
               with the terms of the Plan of Arrangement and the Canadian Tax
               Ruling following the Effective Date in order that the
               Reorganization and the Separation are implemented on a tax
               efficient basis for Alcan and the members of the Alcan Group;

         (f)   Novelis covenants that it shall, and that it shall cause each
               other member of the Novelis Group to, use reasonable best efforts
               to apply for such amendments to the Canadian Tax Ruling and make
               such amendments to the Separation Agreement as may be necessary
               or desirable to obtain the Canadian Tax Ruling or to implement
               the Plan of Arrangement as may be desired by Alcan (i) to enable
               it to implement arrangements or carry out transactions deemed
               advantageous by it for the

<PAGE>

                                      -12-

               purposes of the Separation, or (ii) to achieve a tax efficient
               treatment (to be determined in Alcan's discretion) of transaction
               costs on a worldwide net basis;

         (g)   Novelis covenants that it shall, and that it shall cause each
               other member of the Novelis Group to, cooperate with Alcan and
               the relevant other members of the Alcan Group in the preparation
               and filing of all elections under the Tax Act as contemplated in
               the Reorganization, the Canadian Tax Ruling, the Plan of
               Arrangement, the Tax Framework and this Agreement (and of any
               similar elections that may be required under applicable
               provincial or foreign legislation); such elections shall be made
               in the form and within the time limits prescribed in the Tax Act
               except that Alcan may decide, in its sole discretion, to amend or
               late-file such elections; where an agreed amount is to be
               included in any such election, such amount will be within the
               range contemplated by the Tax Act (or applicable provincial or
               foreign Tax legislation) and will be the amount contemplated by
               the Canadian Tax Ruling, the Plan of Arrangement, the Tax
               Framework and this Agreement, where such amount is specified
               therein and, in any other case, will be the amount determined by
               Alcan in its sole discretion;

         (h)   Novelis covenants that it shall not, and that it shall cause each
               other member of the Novelis Group not to, make any Tax election,
               pay or cause to be paid any distribution from a member of the
               Novelis Group or take any other action that could cause an actual
               increase in the Taxes for which a member of the Alcan Group is
               responsible or that will cause an actual reduction in the amount
               of any refund of Taxes payable to a member of the Alcan Group
               other than as a result of the Separation;

         (i)   Novelis covenants that it shall not, and it shall cause each
               other member of the Novelis Group not to, change any aspect of
               the corporate structure of the Novelis Group as described in
               Schedule 2.02(i) for a period of two years after the Effective
               Time whether through a merger, an amalgamation, a liquidation, a
               dissolution, a retraction of shares, a redemption of shares, a
               sale of shares, a purchase of shares, a transfer of shares, an
               issuance of shares, the payment of a dividend in kind or in
               shares, a sale of assets or any similar transaction, except if
               such transaction is described in the Plan of Arrangement, without
               the prior written consent of Alcan, not to be unreasonably
               withheld or delayed; and

         (j)   Novelis represents as at the date hereof, warrants and covenants
               to and in favour of Alcan and AC as follows:

               (i)  for United States federal income tax purposes, Novelis plans
                    and intends to and shall from the date of this Agreement
                    until two years after the U.S. Separation Date (A) maintain
                    AAC's status as a corporation directly engaged in the active
                    conduct of the AAC Business, and (B) take all actions to
                    carry out, and not take any action that would prevent or be
                    inconsistent with the completion of, the transactions
                    contemplated by the Separation Agreement; and

<PAGE>

                                      -13-

               (ii) there is no plan or intention to, and no Person will from
                    the date of this Agreement until two years after the U.S.
                    Separation Date (A) take any action that would result in AAC
                    ceasing to be directly engaged in the active conduct of the
                    AAC Business, (B) redeem or otherwise repurchase (directly
                    or through an Affiliate of AAC, Arcustarget or Novelis, or
                    any of their respective successors) any of AAC's,
                    Arcustarget's or Novelis' outstanding stock, other than
                    through stock purchases meeting certain United States
                    federal income tax requirements (other than the redemption
                    of the Novelis Special Shares as part of the Arrangement),
                    (C) amend the Constituent Documents of AAC, Arcustarget or
                    Novelis, or any of their respective successors or take any
                    similar action that would affect the relative voting rights
                    of separate classes of their respective stock or convert one
                    class of AAC's, Arcustarget's or Novelis' stock into another
                    class of their respective stock, (D) liquidate or partially
                    liquidate AAC or its Subsidiaries, (E) merge AAC,
                    Arcustarget or Novelis with any other corporation (otherwise
                    than by the amalgamation of Arcustarget and Novelis as part
                    of the Arrangement) or sell or otherwise dispose of (other
                    than in the ordinary course of AAC's, Arcustarget's or
                    Novelis' respective businesses) the assets of AAC or its
                    Subsidiaries, and (F) take any other action or actions that
                    in the aggregate would likely have the effect that any
                    Person (other than Novelis or Arcustarget as part of the
                    Plan of Arrangement) will acquire, as part of a plan or
                    series of related transactions, stock of AAC, Arcustarget or
                    Novelis (or any of their respective successors) representing
                    a 50% Interest in AAC, Arcustarget or Novelis (or their
                    respective successors);

2.03     REPRESENTATIONS, WARRANTIES AND COVENANTS OF AC IN FAVOUR OF AAC AND
         NOVELIS

         AC represents as at the date hereof, warrants and covenants to and in
         favour of AAC and Novelis as follows:

         (a)   to the fullest extent possible under United States federal income
               and state Tax laws, it shall, and it shall cause its Affiliates
               to, treat the Separation as tax-free under Sections 355 and
               368(a)(1)(D) for all United States federal and state Tax
               purposes;

         (b)   for United States federal income tax purposes,

               (i)  AC has the plan and intention to, and will from the date of
                    this Agreement until two years after the U.S. Separation
                    Date (A) maintain AC's status as a corporation directly
                    engaged in the active conduct of the AC Business, and (B)
                    take all actions necessary to carry out, and not take any
                    action that would prevent or be inconsistent with the
                    completion of, the transactions contemplated by the
                    Separation Agreement; and

               (ii) there is no plan or intention to, and no Person will from
                    the date of this Agreement until two years after the U.S.
                    Separation Date (A) take any

<PAGE>

                                      -14-

                    action that would result in AC ceasing to be directly
                    engaged in the active conduct of the AC Business, (B) redeem
                    or otherwise repurchase (directly or through an Affiliate of
                    AC or Alcan), any of AC's or Alcan's outstanding stock,
                    other than as part of the Arrangement or through stock
                    purchases meeting the requirements of Section 4.05(1)(b) of
                    Revenue Procedure 96-30, 1996-1 C.B. 696, (C) amend the
                    Constituent Documents of AC or Alcan or take any similar
                    action that would affect the relative voting rights of
                    separate classes of their respective stock or convert one
                    class of AC's or Alcan's stock into another class of their
                    respective stock, (D) liquidate or partially liquidate AC,
                    (E) merge AC or Alcan with any other corporation or sell or
                    otherwise dispose of (other than in the ordinary course of
                    business) the assets of the AC Business, and (F) take any
                    other action or actions that in the aggregate would likely
                    have the effect that any Person (other than pursuant to the
                    Separation Agreement) will acquire, as part of a plan or
                    series of related transactions, stock of AC or Alcan
                    representing a 50% Interest in AC or Alcan (or their
                    respective successors);

         (c)   AC covenants that it shall not, and that it shall cause its
               Affiliates not to, take any action that would be inconsistent
               with any of the representations, warranties or covenants
               contained in this Section 2.03; and

         (d)   AC covenants that it shall not, and it shall cause each other
               member of the AC Group not to, make any Tax election, pay or
               cause to be paid any distribution from an Affiliate or take any
               other action that could cause an actual increase in the Taxes for
               which a member of the AAC Group is responsible or that will cause
               an actual reduction in the amount of any refund of Taxes payable
               to a member of the AAC Group other than as a result of
               transactions forming part of the Separation.

2.04     REPRESENTATIONS, WARRANTIES AND COVENANTS OF AAC IN FAVOUR OF AC AND
         ALCAN

         AAC represents as at the date hereof, warrants and covenants to and in
         favour of AC and Alcan as follows:

         (a)   to the fullest extent possible under United States federal income
               and state tax laws, it shall, and shall cause its Affiliates to,
               treat the Separation as tax-free under Sections 355 and
               368(a)(1)(D) for all United States federal and state purposes;

         (b)   for United States federal income tax purposes,

               (i)  AAC has the plan and intention to, and will from the date of
                    this Agreement until two years after the U.S. Separation
                    Date (A) maintain AAC's status as a corporation directly
                    engaged in the active conduct of the AAC Business, and (B)
                    take all actions necessary to carry out, and not

<PAGE>

                                      -15-

                    take any action that would prevent or be inconsistent with
                    the completion of, the transactions contemplated by the
                    Separation Agreement; and

               (ii) there is no plan or intention to, and no Person will from
                    the date of this Agreement until two years after the U.S.
                    Separation Date (A) take any action that would result in AAC
                    ceasing to be directly engaged in the active conduct of the
                    AAC Business, (B) redeem or otherwise repurchase (directly
                    or through an Affiliate of AAC, Arcustarget or Novelis, or
                    any of their respective successors) any of AAC's,
                    Arcustarget's or Novelis' outstanding stock, other than as
                    part of the Arrangement or through stock purchases meeting
                    the requirements of Section 4.05(1)(b) of Revenue Procedure
                    96-30, 1996-1 C.B. 696, (C) amend the Constituent Documents
                    of AAC, Arcustarget or Novelis or any of their respective
                    successors other than as part of the Arrangement, or take
                    any similar action that would affect the relative voting
                    rights of separate classes of their respective stock or
                    convert one class of AAC's, Arcustarget's or Novelis' stock
                    into another class of their respective stock, (D) liquidate
                    or partially liquidate AAC or its Subsidiaries, (E) merge
                    AAC, Arcustarget or Novelis with any other corporation
                    (otherwise than by the amalgamation of Arcustarget and
                    Novelis as part of the Arrangement) or sell or otherwise
                    dispose of (other than in the ordinary course of AAC's,
                    Arcustarget's or Novelis' respective businesses) the assets
                    of AAC or its Subsidiaries, and (F) take any other action or
                    actions that in the aggregate would likely have the effect
                    that any Person (other than Novelis or Arcustarget pursuant
                    to the Separation Agreement) will acquire, as part of a plan
                    or series of related transactions, stock of AAC, Arcustarget
                    or Novelis (or any of their respective successors)
                    representing a 50% Interest in AAC, Arcustarget, Novelis (or
                    their respective successors); and

         (c)   Novelis and AAC covenant that they shall not, and that they shall
               cause each other member of the AAC Group not to, make any Tax
               election, pay or cause to be paid any distribution from an
               Affiliate or take any other action that could cause an actual
               increase in the Taxes for which a member of the AC Group is
               responsible or that will cause an actual reduction in the amount
               of any refund of Taxes payable to a member of the AC Group other
               than as a result of transactions forming part of the Separation.

2.05     REPRESENTATIONS, WARRANTIES AND COVENANTS OF NOVELIS AND ARCUSTARGET IN
         FAVOUR OF AC

         [SHOULD ALSO BE GIVEN BY ARCUSTARGET]

         Novelis and Arcustarget represent as at the date hereof, warrant and
         covenant to and in favour of AC as at the date hereof as follows:

         (a)   For United States federal income tax purposes,

<PAGE>

                                      -16-

               (i)  Novelis and Arcustarget have the plan and intention to, and
                    will from the date of this Agreement until two years after
                    the U.S. Separation Date (A) maintain AAC's status as a
                    corporation engaged in the active conduct of the AAC
                    Business, and (B) take all actions necessary to carry out,
                    and not take any action that would prevent or be
                    inconsistent with the completion of, the transactions
                    contemplated by the Separation Agreement; and

               (ii) there is no plan or intention to, and no Person will from
                    the date of this Agreement until two years after the U.S.
                    Separation Date (A) take any action that would result in AAC
                    ceasing to be directly engaged in the active conduct of the
                    AAC Business, (B) redeem or otherwise repurchase (directly
                    or through an Affiliate of AAC, Arcustarget or Novelis, or
                    any of their respective successors) any of AAC's,
                    Arcustarget's or Novelis' outstanding stock, other than as
                    part of the Arrangement or through stock purchases meeting
                    the requirements of Section 4.05(1)(b) of Revenue Procedure
                    96-30, 1996-1 C.B. 696, (C) amend the Constituent Documents
                    of AAC, Arcustarget or Novelis (or any of their respective
                    successors) other than as part of the Arrangement or take
                    any similar action that would affect the relative voting
                    rights of separate classes of their respective stock or
                    convert one class of AAC's, Arcustarget's or Novelis' stock
                    into another class of their respective stock, (D) liquidate
                    or partially liquidate AAC or its Subsidiaries, (E) merge
                    AAC, Arcustarget or Novelis with any other corporation
                    (otherwise than by the amalgamation of Arcustarget and
                    Novelis as part of the Arrangement) or sell or otherwise
                    dispose of (other than in the ordinary course of AAC's,
                    Arcustarget's or Novelis' respective businesses) the assets
                    of AAC or its Subsidiaries, and (F) take any other action or
                    actions that in the aggregate would likely have the effect
                    that any Person (other than Novelis or Arcustarget pursuant
                    to the Separation Agreement) will acquire, as part of a plan
                    or series of related transactions, stock of AAC, Arcustarget
                    or Novelis (or any of their respective successors)
                    representing a 50% Interest in AAC, Arcustarget or Novelis
                    (or their respective successors); and

         (b)   Novelis and Arcustarget covenant that they shall not, and that
               they shall cause their Affiliates not to, take any action that
               would be inconsistent with any of the representations, warranties
               or covenants contained in this Section 2.05.

2.06     SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

         (a)   The representations and warranties of the Parties contained in
               this Article II shall survive the Effective Date until sixty (60)
               days after the expiry of all applicable prescription periods or
               statute of limitations (giving effect to any waiver, mitigation
               or extension thereof) after which no assessment, reassessment or
               other notice or document assessing liability for Taxes for a
               taxation year or taxable period (or other relevant period) may be
               issued to the relevant Party pursuant to any Applicable Law.

<PAGE>

                                      -17-

         (b)   Except as otherwise expressly set out herein, the covenants under
               this Article II shall survive indefinitely.

                                 ARTICLE III -
                                INDEMNIFICATION

3.01     INDEMNIFICATION BY ALCAN

         Alcan shall indemnify, defend and hold harmless Novelis and each other
         member of the Novelis Group and each of their respective directors,
         officers and employees, and each of the heirs, executors, trustees,
         administrators, successors and assigns of any of the foregoing
         (collectively, the "NOVELIS INDEMNIFIED PARTIES"), from and against any
         and all Liabilities of the Novelis Indemnified Parties relating to,
         arising out of or resulting from a breach of a representation, warranty
         or covenant of Alcan or AC in this Agreement.

3.02     INDEMNIFICATION BY NOVELIS

         Novelis shall indemnify, defend and hold harmless Alcan and each other
         member of the Alcan Group and each of their respective directors,
         officers and employees, and each of the heirs, executors, trustees,
         administrators, successor and assigns of any of the foregoing
         (collectively, the "ALCAN INDEMNIFIED PARTIEs"), from and against any
         and all Liabilities of the Alcan Indemnified Parties relating to,
         arising out of or resulting from a breach of a representation, warranty
         or covenant of Novelis or AAC in this Agreement.

3.03     INDEMNIFICATION IN THE EVENT OF MUTUAL BREACH

         Notwithstanding Sections 3.01 and 3.02 of this Agreement, Alcan shall
         not be liable to indemnify any Novelis Indemnified Party, and Novelis
         shall not be liable to indemnify any Alcan Indemnified Party, from and
         against any Liability relating to, arising out of or resulting from the
         application of the Tax Act, or any other similar or equivalent Canadian
         federal or provincial or foreign Tax legislation to (x) the
         transactions described in the Canadian Tax Ruling in a manner
         inconsistent with such ruling or (y) the transactions forming part of
         the Separation in a manner inconsistent with the Tax Framework, if such
         Liability is caused by the combined and simultaneous action of both (i)
         one or more members of the Alcan Group and (ii) one or more members of
         the Novelis Group.

3.04     Indemnification in the Event of a Triggering Event

         If (i) the Tax consequences to the transactions described in the
         Canadian Tax Ruling differ from those set out in the Canadian Tax
         ruling or if the Tax consequences to the transactions forming part of
         the Separation differ from those set out in the Tax Framework, (ii)
         Sections 3.01, 3.02 and 3.03 do not apply and (iii) such different Tax
         consequences result from a Triggering Event, Novelis shall indemnify
         the Alcan Indemnified Parties from and against any Liability relating
         to, arising out of or resulting from such different Tax consequences
         under the Tax Act or any other similar or

<PAGE>

                                      -18-

         equivalent Canadian federal or provincial Tax legislation or the Code,
         even if such Triggering Event does not result from any action or
         omission of any member of the Novelis Group.

3.05     Indemnification in Other Circumstances

         If the Tax consequences to the transactions described in the Canadian
         Tax Ruling differ from those set out in the Canadian Tax Ruling or if
         the Tax consequences to the transactions forming part of the Separation
         differ from those set out in the Tax Framework and Sections 3.01, 3.02,
         3.03 and 3.04 do not apply, then no indemnity shall be provided for
         under this agreement except in the circumstances and to the extent
         provided for in Sections 4 to 7 and 11.

3.06     EVENT OF LAST ACT

         For greater certainty:

         (a)   Alcan will be liable under Section 3.01 of this Article III and
               Novelis will not be liable under Section 3.02 of this Article III
               even though the action of the member of the Alcan Group that
               precipitated the Liability of Alcan was preceded by one or more
               actions of one or more members of the Novelis Group that, in and
               by themselves, would not have precipitated the Liability of
               Novelis;

         (b)   Novelis will be liable under Section 3.02 of this Article III and
               Alcan will not be liable under Section 3.01 of this Article III
               even though the action of the member of the Novelis Group that
               precipitated the Liability of Novelis was preceded by one or more
               actions of one or more members of the Alcan Group that, in and by
               themselves, would not have precipitated the Liability of Alcan;

         (c)   Novelis will be liable under Section 3.04 of this Article III and
               Alcan will not be liable under Section 3.01 of this Article III
               even though the last action that made a Triggering Event happen
               was preceded by one or more actions of one or more members of the
               Alcan Group that, in and by themselves, would not have
               precipitated the Liability of Alcan.

                                  ARTICLE IV -
              GENERAL LIABILITY FOR TAXES FOR PRE-SEPARATION PERIOD

4.01     GENERAL LIABILITY

         (a)   Except as set forth in Section 7.02, Novelis and the members of
               the Novelis Group shall be liable for and shall indemnify and
               hold harmless any member of the Alcan Group against Taxes
               relating to the Pre-Separation Period of any Person that is a
               member of the Novelis Group immediately following the Effective
               Time.

         (b)   Except as set forth in Section 7.02, Alcan and the members of the
               Alcan Group shall be liable for and shall indemnify and hold
               harmless any member of the

<PAGE>

                                      -19-

               Novelis Group against Taxes relating to the Pre-Separation Period
               of any Person that is a member of the Alcan Group immediately
               following the Effective Time.

                                  ARTICLE V -
           GENERAL LIABILITY FOR TAXES FOR THE POST-SEPARATION PERIOD

5.01     GENERAL LIABILITY

         (a)   Except as set forth in Section 7.02, Novelis and the members of
               the Novelis Group shall be liable for and shall indemnify and
               hold harmless any member of the Alcan Group against Taxes
               relating to the Post-Separation Period of any Person that is a
               member of the Novelis Group immediately following the Effective
               Time.

         (b)   Except as set forth in Section 7.02, Alcan and the members of the
               Alcan Group shall be liable for and shall indemnify and hold
               harmless any member of the Novelis Group against Taxes relating
               to the Post-Separation Period of any Person that is a member of
               the Alcan Group immediately following the Effective Time.

                                  ARTICLE VI -
                  ALLOCATION OF LIABILITIES FOR TRANSFER TAXES

6.01     GENERAL ALLOCATION

         Each Person that acquires property of any kind in the course of the
         Reorganization will be liable for the Transfer Taxes payable in respect
         thereof.

                                 ARTICLE VII -
                           YEAR END AND DISAFFILIATION

7.01     YEAR END

         To the extent permitted by law or administrative practice, the taxable
         year or taxable period of any Person that is a member of the Novelis
         Group immediately following the Separation and whose taxable year or
         taxable period does not end on or immediately before the Disaffiliation
         Date, shall close on or immediately before the Disaffiliation Date;
         such taxable year or taxable period shall be considered a
         Pre-Separation Period.

7.02     LIABILITIES RELATING TO PRE-SEPARATION PERIODS FOR TAX CONSOLIDATED
         GROUPS

         (a)   Notwithstanding Sections 4.01 and 5.01 and subject to Applicable
               Law:

               (i)  if, in the course of or as a result of the Separation, a
                    Person ceases to be part of an Alcan Tax Consolidated Group
                    and such Person is a member of the Novelis Group immediately
                    after the Disaffiliation Date (a "FORMER MEMBER"), Novelis
                    shall be liable for and shall indemnify and hold the

<PAGE>

                                      -20-

                    Alcan Group harmless against (A) any Tax liability of such
                    Former Member for any Pre-Separation Period, as determined
                    in a manner consistent with past practice and in accordance
                    with the Alcan Group's intergroup method of income tax
                    allocation, or, in the absence thereof, any other
                    permissible allocation methodology as determined by Alcan,
                    and (B) any Tax liability resulting from a Final
                    Determination with respect to an adjustment attributable to
                    such Former Member for any Pre-Separation Period. Such
                    Former Member shall be entitled to any refund of, or credit
                    for, Taxes of such Former Member or amounts owed by such
                    Former Member or for which such Former Member is responsible
                    under this paragraph (i) of this Section 7.02 (a). Any
                    liability for Taxes under this paragraph (i) of this Section
                    7.02 (a) shall be measured by the relevant Alcan Tax
                    Consolidated Group's actual liability for Taxes after
                    applying tax benefits otherwise available to the Alcan Tax
                    Consolidated Group other than tax benefits that the Alcan
                    Tax Consolidated Group in good faith determines would
                    actually offset Tax liabilities of the Alcan Tax
                    Consolidated Group in other taxable years or periods. Any
                    right to refund under this paragraph (i) of this Section
                    7.02 (a) shall be measured by the actual refund or credit of
                    the Alcan Tax Consolidated Group attributable to the
                    adjustment without regard to offsetting Tax attributes or
                    liabilities of the Alcan Tax Consolidated Group;

               (ii) Alcan shall be liable for and shall hold such Former Member
                    harmless against any liability attributable to any member of
                    the Alcan Tax Consolidated Group (other than Persons who,
                    immediately following the Disaffiliation Date, are members
                    of the Novelis Group) for any Pre-Separation Period,
                    including any liability asserted against any member of an
                    Alcan Tax Consolidated Group under provisions that impose
                    several liability on members of an affiliated group of
                    corporations that files consolidated returns in respect of
                    Taxes of any member of such Alcan Tax Consolidated Group
                    (other than Persons who, immediately following the
                    Separation, are members of the Novelis Group). Alcan shall
                    be entitled to any refund of or credit for Taxes for any
                    periods that are attributable to such Alcan Tax Consolidated
                    Group or amounts owed by such Alcan Tax Consolidated Group
                    or for which such Alcan Tax Consolidated Group is
                    responsible under this paragraph (ii) of this Section 7.02.

         (b)   If, in the course of or as a result of the Separation, a Former
               Member ceases to be a part of an Alcan Tax Consolidated Group,
               Alcan shall determine and Novelis shall cause such Former Member
               to pay the final amount owed, if any, under clause (A) of of
               Section 7.02 (a) (i) for the Fiscal Year 2004 Stub Period as
               follows:

               (i)    within sixty (60) days from the Disaffiliation Date,
                      Novelis shall and shall cause such Former Member to
                      provide Alcan with a complete information package for
                      income tax purposes in the customary Alcan format of such
                      Former Member's Fiscal Year 2004, setting forth the
                      operating and

<PAGE>

                                      -21-

                      nonoperating tax and financial results in sufficient
                      detail to enable Alcan to compute such Former Member's
                      Fiscal Year 2004 Tax liability;

               (ii)   Alcan will calculate in accordance with the principles of
                      this Agreement and consistent with past practice an
                      estimate of such Former Member's Fiscal Year 2004 Stub
                      Period tax liability and submit the calculation to such
                      Former Member within thirty (30) days after the date on
                      which the tax package described in paragraph (i) of this
                      Section 7.02 (b) is provided to Alcan;

               (iii)  the Former Member shall have the right to object in
                      writing to such calculation within (30) days after the
                      date on which the tax package described in paragraph (i)
                      of this Section 7.02 (b) is provided to Alcan, on the
                      grounds that there is substantial authority that such
                      calculation is incorrect; provided that if the Former
                      Member so objects:

                      (1)     Alcan and the Former Member shall promptly submit
                              the dispute to an independent accounting or law
                              firm acceptable to both Alcan and the Former
                              Member for prompt resolution, whose decision shall
                              be final and binding on Alcan and the Former
                              Member; and

                      (2)     the party that such accounting or law firm
                              determines has lost the dispute shall pay all of
                              the fees and expenses incurred in connection with
                              submitting such dispute;

               (iv)   the Former Member shall pay to Alcan the amount determined
                      according to paragraphs (ii) and (iii) of this Section
                      7.02 (b) at least [FIVE (5)] Business Days prior to the
                      date on which such amount is payable to the competent Tax
                      Authority; and

               (v)    a determination of the final amount owed, if any, under
                      paragraphs (ii) and (iii) of this Section 7.02 (b) by the
                      Former Member to Alcan shall be made when the Alcan Tax
                      Consolidated Group's Fiscal Year 2004 Tax Returns are
                      filed and such final amount shall be paid within thirty
                      (30) days from the date Alcan notifies the Former Member
                      of any additional amounts due, together with interest
                      thereon from the date on which such Tax Return is filed,
                      and amounts or owed by Alcan to the Former Member as a
                      refund of an overpayment shall be refunded by Alcan within
                      thirty (30) days, together with interest thereon from the
                      date on which Alcan receives a refund of such amount.

         (c)   To the extent permitted under applicable Tax laws, Novelis shall
               and shall cause each Former Member to make the appropriate
               elections to waive any option to carryback any net operating
               loss, any credits or any similar item to Pre-Separation Periods
               in respect of any Tax Returns that are filed by or for an Alcan
               Tax Consolidated Group. To the extent such an election is not
               permitted under applicable Tax laws, any Former Member shall be
               entitled to carryback any net

<PAGE>

                                      -22-

               operating loss or other item from a Post-Separation Period to a
               Straddle Period, except to the extent that Alcan determines in
               good faith that such action will cause an actual increase in the
               Taxes for which the Alcan Group is responsible or will cause an
               actual reduction in the amount of any refund of Taxes payable to
               the Alcan Group. Any refund of Taxes resulting from any such
               carryback by a Former Member shall be payable to such Former
               Member not later than twenty (20) days after the receipt or
               crediting of a refund together with interest thereon from the
               date on which the refund (together with the interest thereon) is
               actually received or credited.

         (d)   Subject to paragraphs (a) to (c) of this Section 7.02, if, in the
               course of or as a result of the Separation, a Former Member
               ceases to be a part of an Alcan Tax Consolidated Group, the
               following rules shall apply:

               (i)    the disaffiliation or deconsolidation of such Person from
                      the Alcan Tax Consolidated Group shall be treated
                      according to Applicable Law;

               (ii)   if, under Applicable Law, there is more than one method of
                      implementing or treating such disaffiliation or
                      deconsolidation or if elections can or are required to be
                      made in connection with such disaffiliation or
                      deconsolidation, Alcan shall, in its sole discretion,
                      choose the proper method or treatment and make the
                      relevant election or decide how any such election should
                      be made, in which case, Novelis and the members of the
                      Novelis Group shall be bound by Alcan's choice and
                      elections. Novelis shall and shall cause all member of the
                      Novelis Group to file all Tax Returns consistent with
                      Alcan's choice and elections and, where required, join in
                      the making of the relevant elections and otherwise
                      cooperate with Alcan;

               (iii)  if Applicable Law is silent about such disaffiliation or
                      deconsolidation, Alcan shall decide, in its sole
                      discretion, how such withdrawal should be implemented or
                      treated, and Novelis and the members of the Novelis Group
                      shall be bound by any decision made by Alcan in this
                      respect and shall be required to take whatever action is
                      required to give effect to such decision. Novelis shall
                      and shall cause all member of the Novelis Group to file
                      all Tax Returns consistent with Alcan's choice and
                      elections and, where required, join in the making of the
                      relevant elections and otherwise cooperate with Alcan.

                    ARTICLE VIII - CONTROL OF TAX CHALLENGES

8.01     CONTROL OF CHALLENGE OF TAX CLAIMS

         (a)   Subject to Sections 8.02 and 8.03 of this Agreement, if a member
               of the Alcan Group or a member of the Novelis Group (the
               "INDEMNIFIED PARTY") receives a Claim that could give rise to an
               indemnification under this Agreement, the Indemnified Party, if a
               member of the Alcan Group, shall promptly notify Novelis, and if
               a member of the Novelis Group shall notify

<PAGE>

                                      -23-

               Alcan, (in each case the recipient of the notification being the
               "INDEMNITOR").

         (b)   The Indemnified Party agrees to contest any Claim and not to
               settle any Claim without the prior written consent of the
               Indemnitor, provided that within thirty (30) days after notice of
               a Claim by the Indemnified Party to the Indemnitor:

               (i)    the Indemnitor requests in writing that such Claim be
                      contested by the Indemnified Party;

               (ii)   the Indemnitor shall have provided an opinion of an
                      independent tax counsel, selected by the Indemnitor and
                      reasonably acceptable to the Indemnified Party, to the
                      effect that it is more likely than not that a Final
                      Determination will be substantially consistent with the
                      Indemnitor's position relating to such Claim; and

               (iii)  the Indemnitor agrees in writing to pay on demand and pays
                      all out-of-pocket costs, losses and expenses (including,
                      but not limited to, legal and accounting fees) paid or
                      incurred by the Indemnified Party in connection with
                      contesting such Claim.

         (c)   Where a Claim is being contested, and regardless of whether the
               Indemnified Party is a member of the Alcan Group or the Novelis
               Group, Alcan shall determine, in its sole discretion, the nature
               of all actions to be taken to contest such Claim, including:

               (i)    whether any action to contest such Claim shall initially
                      be by way of judicial or administrative proceeding, or
                      both;

               (ii)   whether any such Claim shall be contested by resisting
                      payment thereof or by paying the same and seeking a refund
                      thereof; and

               (iii)  the court or other judicial body before which judicial
                      action, if any, shall be commenced.

         (d)   The Indemnitor shall be entitled to participate in contesting any
               such Claim at its own expense. To the extent the Indemnitor is
               not participating, the Indemnified Party shall keep the
               Indemnitor and, upon written request by the Indemnitor, its
               counsel, informed as to the progress of the contest.

         (e)   If the Indemnitor requests that the Indemnified Party accept a
               settlement of a Claim offered by a Taxing Authority and if such
               Claim may, in the reasonable discretion of the Indemnified Party,
               be settled without prejudicing any claims a Taxing Authority may
               have with respect to matters other than the transactions
               contemplated by the Separation Agreement, the Indemnified Party
               shall either:

               (i)    accept such settlement offer; or

<PAGE>

                                      -24-

               (ii)   agree with the Indemnitor that the Indemnitor's liability
                      with respect to such Claim shall be limited to the lesser
                      of (A) an amount calculated on the basis of such
                      settlement offer plus interest owed to the Taxing
                      Authority on the date of eventual payment, or (B) the
                      amount calculated on the basis of a Final Determination.

         (f)   Except as provided below in this paragraph (f), the Indemnified
               Party shall not settle a Claim that the Indemnitor is entitled to
               require the Indemnified Party to contest under paragraph (b) of
               this Section 8.01 without the prior written consent of the
               Indemnitor. At any time, whether before or after commencing to
               take any action pursuant to this Section 8.01 with respect to any
               Claim, the Indemnified Party may decline to take action with
               respect to such Claim and may settle such Claim without the prior
               written consent of the Indemnitor by notifying the Indemnitor in
               writing that the Indemnitor is released from its obligations to
               indemnify the Indemnified Party with respect to such Claim (which
               notification shall release the Indemnitor from such obligations
               except to the extent the Indemnitor has previously agreed in
               writing that it would be willing to have its liability calculated
               on the basis of a settlement offer in accordance with paragraph
               (e) of this Section 8.01 with respect to any Claim related to
               such Claim or based on the outcome of such Claim. If the
               Indemnified Party settles any Claim or otherwise takes or fails
               to take any action pursuant to this paragraph, the Indemnified
               Party shall pay to the Indemnitor any amounts paid or advanced by
               the Indemnitor with respect to such Claim (other than amounts
               payable by the Indemnitor in connection with a settlement offer
               pursuant to paragraph (e) of this Section 8.01)), plus interest
               attributable to such amounts.

8.02     CERTAIN SPECIFIED TAX CLAIMS

         Notwithstanding Section 8.01 of this Agreement, Alcan shall have sole
         responsibility for all Claims listed in Schedule 8.02 to this Agreement
         and shall have the absolute right to enjoy any benefits of, and the
         obligation to bear the costs of, any such challenge.

                                  ARTICLE IX -
                COOPERATION, RECORD RETENTION AND CONFIDENTIALITY

9.01     COOPERATION AND RECORD RETENTION

         (a)   Alcan shall and shall cause each other member of the Alcan Group
               to, and Novelis shall and shall cause each other member of the
               Novelis Group to, cooperate with any member of the other Group in
               the conduct of any audit or the proceedings in respect of a
               Pre-Separation Period or Straddle Period. Alcan shall and shall
               cause each other member of the Alcan Group to, and Novelis shall
               and shall cause each other member of the Novelis Group to,
               execute and deliver such powers of attorney and make available
               such other documents as are reasonably necessary to carry out the
               intent of this Agreement. Alcan shall and shall cause each other
               member of the Alcan Group to notify Novelis in writing, and
               Novelis

<PAGE>

                                      -25-

               shall and shall cause each other member of the Novelis Group to
               notify Alcan in writing, of any audit adjustments which do not
               result in Tax liability but can be reasonably expected to affect
               Tax Returns of a member of the other Group for any Period.

         (b)   Alcan shall and shall cause each other member of the Alcan Group
               to, and Novelis shall and shall cause each other member of the
               Novelis Group to, in accordance with their respective current
               record retention policies and all Applicable Laws, retain
               records, documents, accounting data and other information
               (including computer data) necessary for the preparation, filing,
               review or audit of any Tax Returns in respect of any
               Pre-Separation Period or Straddle Period.

         (c)   Alcan shall and shall cause each other member of the Alcan Group
               to, and Novelis shall and shall cause each other member of the
               Novelis Group to, provide to any member of the other Group
               reasonable access to such records, documents, data and
               information and to personnel and premises and ensure the
               cooperation of such personnel for the purpose of the review or
               audit of any Tax Returns in respect of any Pre-Separation Period
               or Straddle Period.

         (d)   Novelis shall provide and shall cause each other member of the
               Novelis Group to provide to Alcan access to such records,
               documents, data, information, personnel and premises of Novelis
               and of the other relevant members of the Novelis Group as may be
               required by Alcan to comply with the Canadian tax regime
               applicable to Canadian foreign affiliates or to transfer pricing.
               Without limiting the generality of the foregoing, Novelis shall
               cause each other member of the Novelis Group that was a foreign
               affiliate of Alcan before the Separation, upon request by Alcan,
               to:

               (i)    respond in full to the annual questionnaire of the CRA
                      concerning foreign affiliates (generally known as the
                      "Foreign Affiliate Reporting Package") within 3 months of
                      the receipt of such questionnaire;

               (ii)   provide Alcan with complete financial statements;

               (iii)  respond to questions concerning Form T-106 within one (1)
                      month of receipt; and

               (iv)   respond promptly to other relevant questions for the
                      purposes of the foreign affiliate regime or the
                      transfer-pricing regime in all cases for any
                      Pre-Separation Period or a Straddle Period.

9.02     Confidentiality

         (a)   Alcan shall and shall cause each other member of the Alcan Group
               to (i) treat in a confidential manner all information and data
               relating to Novelis and every other member of the Novelis Group
               that it may receive or have access to pursuant to the provisions
               of this Agreement and (ii) not disclose any such information to
               any

<PAGE>

                                      -26-

               third party except (A) to the extent required by law or by an
               order from a competent tribunal, (B) to the extent required to
               interpret, give effect to or enforce this Agreement, (C) to tax,
               audit or legal professionals on a need-to-know basis, or (D) with
               the prior written consent of Novelis.

         (b)   Novelis shall and shall cause each other member of the Novelis to
               (i) treat in a confidential manner all information and data
               relating to Alcan and every other member of the Alcan Group that
               it may receive or have access to pursuant to the provisions of
               this Agreement and (ii) not disclose any such information to any
               third party except (A) to the extent required by law or by an
               order from a competent tribunal, (B) to the extent required to
               interpret, give effect to or enforce this Agreement, (C) to tax,
               audit or legal professionals on a need-to-know basis, or (D) with
               the prior written consent of Alcan.

                                  ARTICLE X -
                                  TAX RETURNS

10.01    TAX RETURNS

         (a)   Alcan shall prepare or cause to be prepared all Tax Returns with
               respect to members of the Novelis Group, including those Tax
               Returns that are filed on a consolidated, combined or unitary
               basis, that are required to be filed in respect of any
               Pre-Separation Period or Straddle Period and Novelis shall or
               shall cause such Tax Returns to be filed by the member
               customarily responsible for the filing of such Tax Returns within
               the period prescribed therefor.

         (b)   In respect of any Period other than a Pre-Separation Period or a
               Straddle Period,

               (i)    Alcan shall, and shall cause each other responsible member
                      of the Alcan Group to, file or cause to be filed all Tax
                      Returns with respect to members of the Alcan Group, and

               (ii)   Novelis shall, and shall cause each other responsible
                      member of the Novelis Group to, file or cause to be filed
                      all Tax Returns with respect to members of the Novelis
                      Group.

         (c)   No member of the Novelis Group shall amend any of its Tax Returns
               for any Pre-Separation Period or Straddle Period without the
               prior written consent of Alcan, such consent not to be
               unreasonably withheld or delayed. For the purpose of the
               preceding sentence, it shall not be unreasonable for Alcan to
               withhold its consent where such amendment would negatively impact
               Alcan or any other member of the Alcan Group as determined by
               Alcan in its sole discretion.

<PAGE>

                                      -27-

         (d)   For the purposes of paragraph (a) of this Section 10.01, Alcan
               shall be entitled:

               (i)    to conclusively rely on any information or data supplied
                      to it by any member of the Novelis Group or by the
                      auditors, advisors or representatives of any member of the
                      Novelis Group; and

               (ii)   subject to paragraph (b) of Section 7.02, make all
                      determinations or decisions that are of an elective or
                      discretionary nature.

                                  ARTICLE XI -
                             TRANSFER PRICING ISSUES

11.01    TRANSFER PRICING ISSUES

         (a)   If any Taxing Authority proposes to increase the income of a
               member of the Alcan Group or of the Novelis Group (the "FIRST
               GROUP") as a result of the supply of property or services by such
               member of the First Group to a member of the other group (the
               "SECOND GROUP") or by a member of the Second Group to such member
               of the First Group on the basis of any affiliation or other
               relationship between such persons, such member of the First Group
               shall notify the Second Group. The Parties acknowledge the
               existence of the adjustments and proposed adjustments set out in
               Schedule 11.01 to this Agreement and such schedule shall serve as
               notification to Novelis in respect of such adjustments and
               proposed adjustments.

         (b)   The member of the First Group shall have the right to challenge
               such proposed adjustment, in which the case the relevant member
               of the Second Group shall cooperate with the relevant member of
               the First Group including, if so requested by the relevant member
               of the First Group, to (i) seek a determination in respect of
               such proposed adjustment from the Taxing Authority in any
               jurisdiction in which the relevant member of the Second Group is
               resident or carries on business or (ii) challenge such proposed
               adjustment in any such jurisdiction. The relevant member of the
               First Group shall reimburse the relevant member of the Second
               Group for all its reasonable out-of-pocket expenses incurred for
               this purpose.

         (c)   Once a Final Determination has been made by the relevant Taxing
               Authority with respect to the proposed adjustment, or if the
               relevant member of the First Group decides not to challenge the
               proposed adjustment, then the relevant member of the Second Group
               shall pay to the relevant member of the First Group an amount
               equal to Tax savings (including interest) or other relief that
               the relevant member of the Second Group will achieve or obtain as
               a result of such adjustment. If the tax savings or other relief
               are in the form of a reduction of cash Taxes for the same year or
               a preceding year, the amount payable by the relevant member of
               the Second Group shall be equal to the amount of such Tax
               savings. In any other case, the amount of the payment shall be
               equal to the net present value of such Tax savings or other
               relief using an annual discount rate of 8%. Any such

<PAGE>

                                      -28-

               payment shall be treated as a payment for the supply of property
               or services by the relevant member of the First Group to the
               relevant member of the Second Group which gave rise to the
               relevant adjustment. In the event that the relevant member of the
               First Group disagrees with the amount of the Tax savings achieved
               by the relevant member of the Second Group in any jurisdiction as
               determined by the Taxing Authority in such jurisdiction,
               paragraph (b) of this Section 11.01 shall apply mutatis mutandis.

         (d)   No member of the Novelis Group shall request or initiate any
               adjustment described above without the prior written consent of
               Alcan.

         (e)   These principles set out in this Section 12.01 shall apply to (i)
               transactions that have already given rise to an adjustment or
               proposed adjustment by a Taxing Authority, (ii) transactions
               completed before the Effective Date that, as of the Effective
               Date, have not given rise to an adjustment or proposed adjustment
               and (iii) transactions completed on or after the Effective Date.

                                 ARTICLE XII -
                               DISPUTE RESOLUTION

12.01    DISPUTE RESOLUTION AGREEMENT TO APPLY

         Save as provided for in paragraph (c) of Section 11.01, the Dispute
         Resolution Agreement among the Parties and other parties thereto shall
         govern all disputes, controversies or claims (whether arising in
         contract, delict, tort or otherwise) between the Parties that may arise
         out of, or relate to, or arise under or 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.

                                 ARTICLE XIII -
                                 MISCELLANEOUS

13.01    EFFECT ON OTHER TAX SHARING AGREEMENTS

         Any and all prior tax sharing agreements or practices between any
         member of the Alcan Group and any member of the Novelis Group shall be
         terminated and superseded by this Agreement on the Effective Date (or,
         in the case of the United States, the Date of the U.S. Internal
         Distribution).

13.02    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 Parties.

<PAGE>

                                      -29-

13.03    ENTIRE AGREEMENT

         This Agreement and the Separation Agreement, the schedules and exhibits
         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,
         oral or written, negotiations, discussions, writings, understandings,
         commitments and conversations with respect to such subject matter. No
         agreements or understandings exist between the Parties other than those
         set forth or referred to herein or therein.

13.04    INCONSISTENCIES WITH SEPARATION AGREEMENT

         Where any inconsistency between a provision of this Agreement and a
         provision of the Separation Agreement arises as regards to taxation
         matters, the provisions of this Agreement shall prevail.

13.05    GOVERNING LAW

         (a)   Subject to paragraph (b) of this Section 14.05, this Agreement
               shall be governed by and construed and interpreted in accordance
               with the laws applicable in the Province of Quebec, irrespective
               of conflict of laws principles under Quebec law, as to all
               matters, including matters of validity, construction, effect,
               enforceability, performance and remedies.

         (b)   The interpretation or application of this Agreement to matters
               pertaining to Taxes that are assessed or payable in jurisdictions
               other than Canada shall be governed by the laws of that other
               jurisdiction irrespective of conflict of laws principles under
               the laws of such jurisdiction, as to all matters, including
               matters of validity, construction, effect, enforceability,
               performance and remedies, and where such other jurisdiction is
               the United States, the laws of the State of New York shall apply.

13.06    DISCLAIMER REGARDING TAX ATTRIBUTES

         Except as otherwise provided in this Agreement, no representation or
         warranty is being made by Alcan or any member of the Alcan Group in
         this Agreement regarding the tax attributes of the properties or
         entities that are to be transferred, directly or indirectly, to
         Arcustarget or Novelis as part of the Reorganization or the
         Arrangement.

13.07    TAX SERVICES

         For a period of two (2) years following the Effective Date, Novelis
         shall and shall cause each other member of the Novelis Group not to use
         the services in the area of taxation of any accounting or law firm that
         rendered professional services in the area of taxation to Alcan or to
         any member of the Alcan Group in connection with the Separation, except
         with the prior written consent of Alcan.

<PAGE>

                                      -30-

13.08    TAX LIABILITY

         For the purposes of Articles IV, V, VI, VII and XI of this Agreement,
         when, under Applicable Law, the primary liability for a Tax rests with
         one person but another person is also liable to pay such Tax or any
         portion thereof (or an amount equal to such Tax or any portion thereof)
         due to the relationship between such persons or as a result of a
         payment or other transaction between such persons, such Tax shall be
         considered as a Tax of the first person and not as a Tax of the second
         person.

13.09    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 day 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 Alcan, to:

         Alcan Inc.
         1188 Sherbrooke Street West
         Montreal, Quebec
         H3A 3G2
         Fax: 514-848-8436
         Attention: Chief Legal Officer

         With a copy to:

         Alcan Inc.
         1188 Sherbrooke Street West
         Montreal, Quebec
         H3A 3G2
         Fax: 514-848-8115
         Attention: Chief Tax Officer

         If to Novelis or Arcustarget, to

         Novelis Inc.
         o

         If to AC, to

         Alcan Corporation
         o

<PAGE>

                                      -31-

         If to AAC, to

         Novelis Corporation
         o

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

13.10    INTEREST

         Where in this Agreement an amount of interest is stipulated to be
         payable, such interest shall be computed at an annual rate of 7% unless
         otherwise specified.

13.11    ASSIGNABILITY

         This Agreement shall be binding upon and inure to the benefit of the
         Parties hereto and thereto, respectively, and their respective
         successors and assigns; provided, however, that no Party hereto may
         assign its respective rights or delegate its respective obligations
         under this Agreement without the express prior written consent of the
         other Party, not to be unreasonably withheld or delayed.

13.12    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.

13.13    WAIVERS OF DEFAULT

         Waiver by any Party of any default by the other Party of any provision
         of this Agreement shall not be deemed a waiver by the waiving Party of
         any subsequent or other default, nor shall it prejudice the rights of
         the other Party.

13.14    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.

<PAGE>

                                      -32-

13.15    FURTHER ASSURANCES

         Each of the Parties will promptly do, make, execute or deliver, or
         cause to be done, made, executed or delivered, all further acts,
         documents and things as the other Party to this Agreement may
         reasonably require from time to time for the purpose of giving effect
         to this Agreement and will use reasonable efforts and take any steps as
         may be reasonably within its power to implement to their full extent
         the provisions of this Agreement.

         [The remainder of this page is intentionally blank.]

<PAGE>

                                      -33-

IN WITNESS WHEREOF, the Parties have caused this Tax Sharing and Disaffiliation
Agreement to be executed by their duly authorized representatives.

<TABLE>
<S>                 <C>
                    ALCAN INC.

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    NOVELIS INC.

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    ARCUSTARGET INC.

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    By:__________________________________________________
                       Name:  o
                       Title: o

</TABLE>
<PAGE>

                                      -34-
<TABLE>
<S>                 <C>

                    ALCAN CORPORATION

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    NOVELIS CORPORATION

                    By:__________________________________________________
                       Name:  o
                       Title: o

                    By:__________________________________________________
                       Name:  o
                       Title: o

</TABLE>

<PAGE>

                                      -35-

                                SCHEDULE 2.02(i)

          Corporate Structure of the Novelis Group After the Separation

o

<PAGE>

                                      -36-

                                  SCHEDULE 8.02

              Tax Claims That Are The Sole Responsibility of Alcan

o

<PAGE>

                                      -37-

                                 SCHEDULE 11.01

                          Transfer Pricing Adjustments

o<PAGE>
                                                                  Exhibit 10.25

DATED                                                                      2004
-------------------------------------------------------------------------------

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

                               TOLLING AGREEMENT
                                      FOR
                              PET FOOD CONTAINERS

                                    BETWEEN

                          ALCAN PACKAGING ZUTPHEN B.V.

                                      AND

                             ALCAN DEUTSCHLAND GMBH

------------------------------------------------------------------------------
<PAGE>

                                    CONTENTS

CLAUSE                                                              PAGE

1      DEFINITIONS....................................................3
2      DURATION.......................................................5
3      ALCAN ZUTPHEN'S ESTIMATES AND ORDERS...........................5
4      TOLLING OBLIGATIONS OF NOVELIS GMBH............................6
5      TEMPORARY PLANT CLOSURE........................................8
6      PRICE AND PAYMENT..............................................8
7      QUALITY, WARRANTIES & DISCLAIMERS .............................9
8      INTELLECTUAL PROPERTY.........................................10
9      FORCE MAJEURE.................................................10
10     ASSIGNMENT....................................................11
11     EARLY TERMINATION/VOLUME TRANSFER ............................11
12     CONFIDENTIALITY...............................................13
13     NON COMPETITION...............................................13
14     INDEMNIFICATION OF NOVELIS GMBH FOR LAY-OFF OR
       SOCIAL PLAN COSTS.............................................14
15     OPTIONS AND RIGHTS OF FIRST REFUSAL...........................14
16     SEVERABILITY OF PROVISIONS....................................15
17     COMPLETE AGREEMENT -- AMENDMENTS -- WAIVERS...................15
18     NOTICES.......................................................15
19     APPLICABLE LAW AND JURISDICTION...............................15

APPENDIX A = Specification
APPENDIX B = Specification of Pre-Material
APPENDIX C = IP-Rights
APPENDIX D = Tolling Price List
APPENDIX E = Quality test procedures
APPENDIX F = Specification of Packaging Material

                                       2
<PAGE>

THIS AGREEMENT is made the    day of December 2004 BETWEEN:

(1)   ALCAN DEUTSCHLAND GMBH, Hannoversche Strasse 1, 37075 Gottingen, a company
      registered in Germany, to be renamed "Novelis Deutschland GmbH" after
      31st December 2004, -- hereinafter referred to as "NOVELIS GMBH"

and

(2)   ALCAN PACKAGING ZUTPHEN B.V., Finsestraat 1, 7202-CE Zutphen, a company
      registered in The Netherlands -- hereinafter referred to as "ALCAN
      ZUTPHEN"

      together referred to as the "PARTIES"

WHEREAS:

A. Alcan Inc. and Novelis Inc. have agreed the terms of a Separation Agreement
('the Separation Agreement') under which Novelis Inc. will be separated from the
Alcan group of companies, and the pet food business will be run solely by Alcan
Zutphen, but Novelis GmbH will continue to produce pet food containers ("PFC")
in Ohle for Alcan Zutphen for a limited amount of time. Therefore, the Parties
have decided to conclude this Pet Food Tolling Agreement ("PTA") according to
which Novelis GmbH will toll PFC for Alcan Zutphen as agreed herein.

B. Novelis GmbH shall toll Pre-Material from Alcan Packaging Rorschach AG,
Industriestrasse 35, CH-9400 Rorschach or any other company chosen by Alcan
Zutphen, by pressing it into PFC which will then be packed by Novelis GmbH.

C. Alcan Zutphen will either receive the PFC EXW Ohle or CIP warehouse in Hagen.

D. Novelis GmbH will throughout the term of the PTA maintain its support for the
business of Alcan Zutphen through technical services as herein set forth.

E. The Parties wish to set out the terms which they have agreed for the tolling
of PFC.

IT IS HEREBY AGREED as follows:

1.     DEFINITIONS AND INTERPRETATION

1.1    In this Agreement the following terms shall have the following meanings
       unless the context requires otherwise:

"Contract Price"           means the price payable by Alcan Zutphen to Novelis
                           GmbH for tolling of aluminium foil into PFC in
                           Euros/1000 pieces as defined in Appendix D.

"cosi"                     means a warehouse located at Hagen in Germany.

"Customers"                means customers of Alcan Zutphen that will purchase
                           the pet food containers from Alcan Zutphen.

                                       3
<PAGE>
"Date of Delivery"         means the date when the PFC tolled by Novelis GmbH is
                           ready for dispatch and where such readiness has been
                           notified Alcan Zutphen

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

***

***

***

"Month"                    means each calendar month throughout the duration of
                           this Agreement

"FMP"                      means the fair market price to be determined by the
                           Parties or by PwC in case the Parties can not agree
                           on such price for the sale of Tools, Stackers and
                           Presses.

"Ohle"                     means the plant of Novelis GmbH in Ohle, Am Eisenwerk
                           30, 58840 Plettenberg-Ohle, where the PFC are
                           pressed.

"PFC"                      means pet food containers conforming to the
                           Specifications as defined in Appendix A.

"PTA"                      means this Pet Food Tolling Agreement.

"Pre-Material"             means aluminium foil with Specifications as set out
                           in Appendix B.

"Presses"                  Machines in which the Tools are used to produce the
                           PFC and in which the Stackers are used to collect the
                           PFC, and for which presses Alcan Zutphen has a right
                           of first refusal during or at the end of the contract
                           period or a period of 12 months thereafter. Alcan
                           Zutphen has to respond within 30 days in case Novelis
                           GmbH is offering Alcan Zutphen to buy the Presses.

"Reasonable and
Prudent Operator"          shall mean a person or a company seeking to perform
                           its contractual obligations and in so doing and in
                           the general conduct of its undertaking including in
                           the operation, maintenance and repair of any
                           manufacturing or other facilities exercising that
                           degree of skill, diligence, prudence and foresight
                           and in the maintenance and repair of any
                           manufacturing or other facilities using the type of
                           equipment, materials and parts which would reasonably
                           and ordinarily be expected from a skilled and
                           experienced operator or company in substantial
                           compliance with all applicable laws, engaged in the
                           same type of undertaking in the same locality and
                           under the same or similar circumstances and
                           conditions. This includes all quality and management
                           systems according to the standards that were
                           developed by the Alcan group of companies in recent
                           years.

***

*** 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.

                                       4
<PAGE>

"Specifications"           means those specifications for PFC set out in
                           Appendix A and for Pre-Material as set out in
                           Appendix B.

***

"Tools/Stackers"           means the Tools/Stackers for the production of the
                           PFC, owned by Novelis GmbH, for which Alcan Zutphen
                           has a purchase option at the end of the contract
                           period or whenever the production at Ohle for which
                           these Tools and Stackers are used is terminated for
                           whatever reason.

"Volume Plan"              means a plan under which the agreed monthly volume
                           plan for tolling of PFC is determined.

"Week"                     means each week, commencing 00.00 European Standard
                           Time or European Summer Time as the case may be on
                           Monday.

"Year"                     means each period of 12 consecutive Months throughout
                           the duration of this Agreement, commencing on the
                           Effective Date.

1.2    The headings to the clauses are for convenience only, have no legal
       effect, and shall not affect the construction of this Agreement.

1.3    The supply contract as well as the service agreement between the Parties
       as of 14 November 2002 shall be terminated as of the Effective Date.

2.     DURATION

       This Agreement shall come into effect on the date of signing the PTA. The
       PTA shall commence on the Effective Date and shall continue ***. Either
       Party can terminate the Agreement in full or in part with a notice period
       of 5 (five) Months by *** the earliest or any date thereafter according
       to the provisions set forth in Clause 11.3.

       The Parties agree to discuss a possible extension of this Agreement with
       new terms and conditions in the first quarter of ***.

3.     ALCAN ZUTPHEN'S ESTIMATES OF REQUIREMENTS AND ORDERS

3.1    Alcan Zutphen shall place orders in writing (facsimile, mail, via IT --
       system where appropriate) for tolling of PFC EXW Novelis GmbH's plant in
       Ohle or CIP cosi.

3.2    Alcan Zutphen shall place such tolling orders for PFC as reasonably
       evenly as possible throughout each Week subject to which Novelis GmbH
       undertakes to toll and deliver the same in accordance with such orders.

3.3    If Alcan Zutphen places orders for PFC other than in accordance with the
       above provisions, or if Alcan Zutphen requires delivery outside the
       normal delivery times, Novelis GmbH shall use its best endeavours to meet
       such orders.

*** 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.

                                       5
<PAGE>

3.4    All deliveries of PFC pursuant to the PTA, shall be governed by the terms
       of the PTA. Deliveries shall be made EXW Ohle or CIP cosi. In case the
       storage contract between Novelis GmbH and cosi is not split between the
       Parties in 2005, Novelis GmbH will invoice Alcan Zutphen for the
       allocated costs of *** for the year 2005 on a monthly basis. Alcan
       Zutphen will pay such invoice within 30 days. To ensure Alcan Zutphen's
       ability to enter into a new contract with cosi, Novelis GmbH is obliged
       to terminate the contract with cosi for the PFC's by the end of 2005.

3.5    Pick-ups of PFC shall be made during normal working hours.

3.6    Conditions and Process of PTC tolling and delivery between Novelis GmbH
       and Alcan Zutphen:

       3.6.1    PFC Specifications
                Specifications for PFC are laid down in Appendix A.
                Specifications for Pre-Material are set forth in Appendix B.

       3.6.2    Change of Specifications
                Changes of Specifications will be agreed between the Parties in
                writing.

       3.6.3    Budget
                Each year latest end of August, Alcan Zutphen will provide an
                annual Budget ("Budget") for the following year for Novelis
                GmbH. In addition to that Alcan Zutphen will provide a Volume
                Plan latest end of October. The Budget shall consist of volumes
                in types of PFC and related Specifications; the Volume Plan
                shall consist a monthly tolling plan.

       3.6.4    Rolling Forecast
                Each week Alcan Zutphen shall provide Novelis GmbH with a
                Rolling (Production) Forecast with an indication of the required
                production quantities per type / specification of PFC per week,
                over the upcoming 26 weeks.

       3.6.5    Weekly Planning
                Each week (by Friday morning), Alcan Zutphen shall provide
                Novelis GmbH with a firm production schedule for the upcoming
                week.

       3.6.6    Order Process
                To be agreed upon in writing between the Parties.

4.     TOLLING OBLIGATIONS OF NOVELIS GMBH

4.1    During the term of the PTA Novelis GmbH shall be obliged to toll and
       Alcan Zutphen shall be obliged to off-take an aggregate of not less than
       the relevant quantity of PFC as agreed in the Budget, the Volume Plan and
       the Rolling Forecast. The Parties will agree on a monthly tolling and
       delivery schedule to match the Volume Plan and the Rolling Forecast. The
       Parties accept tolerances of 10 % for tolling orders and subsequent
       deliveries per Month. Alcan Zutphen's additional possibility to reduce
       volumes is set forth in Clause 11.3. Price calculations are made
       according to the formulas as set out in Appendix D.

4.2    Should Novelis GmbH breach its obligations under Clause 4.1 and 4.2,
       (including any failure to toll and deliver by the agreed time), Alcan
       Zutphen shall be entitled to a full compensation for all direct damages
       (incl. any recall costs) up to an amount of ***. For any indirect damages
       Novelis GmbH shall be liable up to an amount of EUR

*** 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.

                                       6
<PAGE>
       *** incurred by Alcan Zutphen, including (but not limited to) loss of
       profit and loss of business.

4.3    For the year 2005 the Parties agree to an amount of PFC's to be tolled by
       Novelis GmbH of ***. From year *** on the amount to be tolled varies upon
       the Budget, the Volume Plan and the Rolling Forecast. Changes to such
       budgets, plan or forecast must meet the requirements set forth in Clause
       4.1 and / or 11.3.

       With the exception of the forecast for the year 2005 the figures below
       show the Parties' assumption of the PFCs to be tolled by Novelis GmbH
       each year. The actual quantities may be higher or lower than indicated
       thereafter and Alcan Zutphen is under no obligation to have such
       indicated quantities tolled by Novelis GmbH:

       ***

4.4    Alcan Zutphen will purchase Pre-Material necessary for the production of
       PFC from a company qualified by Alcan Zutphen according to Appendix B.
       Novelis GmbH shall confirm the qualification of the Pre-Material from
       such company. The purchase of Pre-Material is under the sole
       responsibility of Alcan Zutphen. The storage capacity of Novelis GmbH is
       limited for Pre-Material up to 200 tons and for PFC up to 1000 pallets.
       Storage of quantities exceeding storage requirements must be agreed
       between the Parties. Novelis GmbH shall check incoming Pre-Material in
       regard to open defects only. If hidden defects are detected during
       tolling of PFC's, Novelis GmbH will not use such defected Pre-Material
       and shall get in touch with Alcan Zutphen as quickly as possible in order
       to discuss and determine the appropriate measures. If necessary Alcan
       Zutphen shall replace such defected Pre-Material at its own costs.
       Novelis GmbH will pay tolling costs for those PFC tolled with hidden
       defects in Pre-Material; provided however that the agreed quality test
       during the production according to Appendix E have been made by Novelis
       GmbH.

       In case of late delivery of Pre-Material, Alcan Zutphen will reimburse to
       Novelis GmbH all additional costs which result from late deliveries or
       which will be incurred by Novelis GmbH to offset late deliveries by
       additional shifts or other comparable measures to level out late
       deliveries. The limitation of liability according to Clause 4.2 shall --
       mutatis mutandis -- also apply for Alcan Zutphen.

4.5    Scrap rates are not included in the tolling price. However, Alcan Zutphen
       as the owner of the Pre-Material (and therefore also the scrap) is
       entitled to sell the scrap. Novelis GmbH shall inform Alcan Zutphen on a
       monthly basis about the actual scrap rates and actual scrap volumes.
       Alcan Zutphen will pick up scrap on a monthly basis. Scrap rates per type
       as defined and agreed by the Parties are set out in Appendix D. Should
       the actual scrap rate per type be higher than budgeted, Novelis GmbH will
       pay the additional Pre-Material that is required to produce the missing
       containers. A detailed calculation will be done by Novelis GmbH and
       communicated to Alcan Zutphen each Month to balance the calculated and
       the actual scrap output.

4.6    Alcan Zutphen is charged monthly for packaging material based on shipped
       volumes according to the budgeted price as set out in Appendix D. By the
       end of each quarter the consumed packaging material will be balanced with
       the already invoiced packaging material

*** 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.

                                       7

<PAGE>
       cost. The residual value of the packaging material will be debited or
       credited. The Parties agree that if Alcan Zutphen is able to purchase the
       packaging material with the same specification at a lower price this
       entire Clause 4.7 will be renegotiated. Specifications for packaging
       material is set forth in Appendix F.

4.7    Upon specification of Alcan Zutphen, Novelis GmbH will source and process
       the appropriate materials for identification (e.g. labels), packaging
       (e.g. operating supplies) and pallets of PFC's. Such costs are included
       in the tolling costs.

4.8    Pre-Material delivered to Novelis GmbH shall remain in the ownership of
       Alcan Zutphen or the relevant Alcan Group Company.

       Should Pre-Material be damaged by Novelis GmbH such Pre-Material shall be
       reimbursed to Alcan Zutphen by credit note reflecting the purchase price
       of the Pre-Material. Pre-Material has to be stored according to Alcan
       Zutphen's instructions as previously given to Novelis GmbH.

4.9    Novelis GmbH will take insurance coverage for obligations agreed upon
       with Alcan Zutphen under Clause 4.3 and Clause 7 within its general
       insurance policy. Novelis GmbH shall provide Alcan Zutphen upon first
       request with an insurance certificate proofing adequate coverage for
       property damage, third party liability and product liability. Alcan
       Zutphen shall provide Novelis GmbH upon first request with an insurance
       certificate proofing adequate coverage for property damage in connection
       with the supply of Pre-Material.

4.10   Pre-Material shipped to Novelis GmbH will remain Alcan Zutphens property
       during the entire tolling process. Alcan Zutphen shall be entitled to
       take any necessary measures to ensure the (extended) retention of title
       under any applicable law. Novelis GmbH hereby undertakes not to interfere
       with any of such measures.

5.     TEMPORARY PLANT CLOSURE

5.1    Where Novelis GmbH plans a temporary maintenance closure of, or a period
       of reduced production at Novelis GmbH's PFC plant in Ohle which may
       affect Novelis GmbH's ability to supply PFC to Alcan Zutphen in
       accordance with Novelis GmbH's obligations, it shall notify Alcan Zutphen
       as soon as possible but not later than 4 (four) Months in advance. Both
       Parties will agree an action plan to avoid any bottlenecks in the tolling
       and delivery of PFC to Alcan Zutphen.

5.2    During any period of temporary maintenance closure or reduced production
       as envisaged in Clause 5.1, Novelis GmbH shall give preference to
       deliveries of PFC to Alcan Zutphen as far as legally possible.

6.     PRICE AND PAYMENT

6.1    The price for PFC tolling under the PTA shall be fixed according to a
       yearly price list as attached under Appendix D. Prices are based on
       volume, and specification mix, as budgeted for 2005. As agreed, the
       defined costs 1 (Appendix D) are fixed by 1000 pcs and for each Year the
       budgeted mix will be recalculated in total costs 1 as part of the tolling
       costs. If the Parties to the PTA are unable to agree on the amount of
       such increase or reduction within 30

                                       8
<PAGE>
       days after the submission by Novelis GmbH of a formal proposal to Alcan
       Zutphen, the matter shall be referred for determination to
       PricewaterhouseCoopers (PWC), in Frankfurt, Germany who shall act as
       experts and not as arbitrators, and whose decision shall be accepted by
       the Parties as final and binding. Alcan Zutphen shall pay the tolling fee
       according to the yearly quantities as agreed upon in Clause 4.3 or
       adjusted according to Clause 4.1. In case the quantity deviation exceeds
       the quantity set forth in Clause 4.4, the Parties will re-negotiate the
       price as set out above.

6.2    If PFCs are ready for dispatch at Novelis GmbH's plant in Ohle, Novelis
       GmbH shall submit to Alcan Zutphen tolling invoices. An invoice submitted
       by telex or facsimile shall be regarded as a valid invoice for the
       purpose of PTA.

6.3    All invoices submitted pursuant to Clause 6.2 shall be paid in Euros
       within 60 (sixty) days end of the Month, after the day of invoicing.
       Payment shall be made to Novelis GmbH's bank account details of which
       shall be given by Novelis GmbH to Alcan Zutphen.

6.4    In addition to the price calculated pursuant to Clause 6.1, Alcan Zutphen
       shall pay Value Added Tax in respect thereof, if applicable.

6.5    Before the Effective Date all Pre-Material and finished PFC will be taken
       over by Alcan Zutphen, including any obsolete stocks. Novelis GmbH will
       transfer any book reserves for obsolete stocks to Alcan Zutphen before 31
       December 2004.

7.     QUALITY, WARRANTIES & DISCLAIMERS

7.1    Novelis GmbH warrants for a period of *** months from the date of filling
       of a PFC that all PFC supplied hereunder shall conform to the
       Specifications detailed in Appendix A, and Alcan Zutphen warrants that
       Pre-Material supplied by Alcan Packaging Rorschach AG (or any other
       qualified company) shall conform to Pre-Material Specifications supplied
       to Novelis GmbH and detailed in Appendix B. Any damage or non-conformity
       with the Specifications of the PFCs may be reported to Novelis GmbH
       during the warranty period. Alcan Zutphen has no obligation to inspect
       delivered PFCs upon delivery. Alcan Zutphen shall give Novelis GmbH
       prompt notification in case any damages or any non-conformity of the PFCs
       are detected during the warranty period.

7.2    Changes of Specifications and Tools/Stackers must be agreed by both
       Parties. The request for a change of the Specifications or Tool/Stackers
       shall be submitted to Novelis GmbH in writing three Months in advance.
       Novelis GmbH will use all reasonable endeavours to accommodate such
       change provided that it is technically possible. In this event, the price
       shall be adjusted to reflect the resulting increase or decrease in the
       costs to Novelis GmbH of tolling PFC to such amended or changed
       Specifications or the change of Tools / Stackers shall be paid by Alcan
       Zutphen directly. If the Parties to the PTA are unable to agree on the
       amount of such increase or reduction within 30 days after the submission
       by Novelis GmbH of a formal proposal to Alcan Zutphen, the matter shall
       be referred to PwC in Frankfurt, Germany, who shall act as experts and
       not as arbitrators, and whose decision shall be accepted by the Parties
       as final and binding.

7.3    Novelis GmbH is responsible for the quality control of the produced PFCs
       in Ohle. Alcan Zutphen will not inspect delivered PFCs as they are
       shipped directly to the Customers. Novelis GmbH shall upon Alcan
       Zutphen's first request furnish all relevant documents to enable the
       Customer or Alcan Zutphen to trace back defective PFC's.

*** 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.

                                       9
<PAGE>

7.4    Where Novelis GmbH has tolled PFCs for Customers of Alcan Zutphen which
       do not conform to the Specifications, and under the provision that Alcan
       Zutphen has given notice in accordance with Clause 7.1, Novelis GmbH will
       refund the price of the defective PFC to Alcan Zutphen. Additionally,
       Novelis GmbH will be liable for all damages according to Clause 4.3.

8.     INTELLECTUAL PROPERTY

8.1    Novelis GmbH hereby grants Alcan Zutphen a world-wide, irrevocable,
       exclusive license, with the right to grant sublicenses, for all designs
       as listed in Appendix C (hereinafter "IP-Rights"), for as long as these
       IP-Rights are protected by any applicable law. Such license shall be
       granted to Alcan Zutphen free of charge.

8.2    Novelis GmbH hereby undertakes not to license such IP-rights to any other
       person nor to any Affiliated Company or third party, nor to use such
       IP-rights for itself, in each case, for the duration of the PTA.

8.3    In case of any discrepancies or uncertainties regarding the IP-Rights
       granted to Alcan Zutphen, the Separation Agreement, including any
       exhibits, attachments or schedules thereof, shall prevail.

8.4    Novelis GmbH hereby undertakes to transfer the brand "PICOPAC"
       (International Brand No. 814 331) to Alcan Zutphen as soon as possible.
       Such transfer has already been initiated but was not yet completed.

9.     FORCE MAJEURE

9.1    "Force Majeure" for the purposes of this Clause shall mean any
       circumstances beyond the reasonable control of the Party affected which
       (in the case of Novelis GmbH) prevent Novelis GmbH from tolling PFC at
       Novelis GmbH's plant in Ohle or delivering it to any warehouse of Alcan
       Zutphen, and which prevent Customers of Alcan Zutphen from receiving PFC
       at their plants. Force Majeure shall include breakdown of either Novelis
       GmbH's plant or production unit in Ohle or Alcan Zutphen's Customer
       plants, but only if and to the extent that such breakdown has not
       occurred as a result of Novelis GmbH, or Customers of Alcan Zutphen, as
       the case may be, having failed to act at all relevant times a Reasonable
       and Prudent Operator. Force Majeure shall not include any temporary
       closure or reduced production as provided for in Clause 5, nor anything
       which is the result of a Party having failed to act as a Reasonable and
       Prudent Operator, nor any breakdowns or other failures of transportation
       (whether carried out by the Parties directly or under contract), nor any
       reduction in production due to economic circumstances, nor any other
       market or economic circumstances which may make the terms of this
       agreement unattractive to one of the Parties. A strike caused by Novelis
       GmbH or any Affiliated Company shall not be considered as a Force Majeure
       event.

9.2    If either Party is rendered unable to carry out any of its obligations
       under the PTA by reason of Force Majeure, that Party shall not be liable
       for any failure to perform the obligation(s) for so long as performance
       is thus affected. Provided that this Clause 9 shall not apply if the
       specific, actual event of Force Majeure could reasonably have been
       foreseen by the affected Party at the Effective Date as being reasonably
       likely to occur.

                                       10
<PAGE>
9.3    As soon as a Party is aware of a threat of circumstances likely to lead
       to its declaring Force Majeure (even though such circumstances may not
       have occurred, or where it is not certain that they will result in Force
       Majeure being declared), that Party shall notify the other and consider
       with it what steps, if any, may be taken to overcome such circumstances.

9.4    A Party wishing to invoke Force Majeure shall promptly notify the other
       in writing giving details thereof, of the anticipated affect on this
       Agreement and of the estimated duration of Force Majeure. Such Party
       shall update such information at least once a week throughout the
       duration of the Force Majeure, and shall provide as much notice as
       possible of the reduction of normal supplies and/or deliveries.

9.5    The Party affected by an event of Force Majeure shall take all reasonable
       steps to procure that such event ceases to exist and to minimise the
       effects thereof on the performance of its obligations hereunder; provided
       that nothing in this Clause 9 shall require that Party to settle any
       labour dispute on terms which in its sole opinion are not satisfactory to
       it.

9.6    To the extent that Novelis GmbH is prevented by an event of Force Majeure
       from tolling PFC or to the extent to which Alcan Zutphen Customers are
       prevented from taking delivery of PFC, the Parties' respective tolling
       and delivering obligations shall be reduced on a pro rata time basis, and
       there shall be a corresponding reduction in the tolling and off-take
       obligations set out in Clause 4 (it being assumed that the quantities
       which would otherwise have been supplied equalled the Monthly Purchase
       Amount for the Month in question). Alcan Zutphen shall have the right to
       take over Tools / Stackers in case Novelis GmbH declares a Force Majeure
       event in order to produce the amount of PFC affected in the plant in
       Zutphen. Moving costs will be borne by Alcan Zutphen.

9.7    No occurrence of Force Majeure shall operate to extend the duration of
       this PTA.

9.8    In no circumstances shall problems with making payments constitute Force
       Majeure.

10.    ASSIGNMENT

10.1   The PTA is personal to the Parties and, subject to Clauses 10.2 and 10.3
       neither Party shall be entitled to assign its rights or obligations
       hereunder in whole or in part without the prior written consent of the
       other Party.

10.2   Notwithstanding Clause 10.1, either Party shall be entitled to assign its
       rights and obligations in whole or in part without consent to Alcan Inc.
       or Novelis Inc. or an Affiliate Company. For the purposes of the PTA
       "Affiliate Company" shall mean the holding or subsidiary company of Alcan
       Inc. or Novelis Inc. or a subsidiary company of a party's holding company
       in which either Alcan Inc. or Novelis Inc. holds more than 50 % of the
       respective shares. Such assignment to an Affiliated Company shall not be
       permitted in case the production of Novelis GmbH's location in Ohle would
       be transferred to a different location.

11.    EARLY TERMINATION/VOLUME TRANSFER

11.1   Subject to Clause 11.2 if either Party shall commit a material breach of
       any of the terms and conditions of the PTA then the other Party shall by
       notice in writing be entitled to require that the other Party remedies
       any such breach within 30 working days from the date of such notice and
       should that Party fail to remedy such breach within the period aforesaid
       the other

                                       11
<PAGE>
       Party shall be entitled to forthwith terminate the PTA. Such termination
       will be without prejudice to the additional right of the terminating
       Party to claim for damages in respect of the said material breach, and
       also to any claims and/or rights or remedies which either Party may have
       against the other insofar as such claims, rights or remedies accrued
       prior to such termination.

11.2   If either Party shall enter into compulsory or voluntary liquidation (not
       being a voluntary liquidation for the purpose of reconstruction or
       amalgamation), or have a receiver or administrator appointed to any part
       of its assets, or becomes unable to pay its debts as they fall due, then
       the other Party may terminate the PTA forthwith by written notice to such
       effect.

11.3   In the event that the volume of PFCs to be tolled by Novelis GmbH drops
       below ***/year solely due to market reasons, Alcan Zutphen is entitled to
       terminate this PTA in whole or in part by 1 January *** or any date
       thereafter by meeting a five Months notice period. Should the volumes of
       PFCs tolled by Novelis GmbH at any date exceed the volumes of PFCs tolled
       by Alcan Zutphen, then Alcan Zutphen is entitled to transfer such
       difference of volumes to Alcan Zutphen (re-balancing). In addition to
       that Alcan Zutphen is entitled to terminate the PTA at any time in case
       the total volumes of PFCs tolled by Alcan Zutphen and Novelis GmbH
       together drop below ***.

       ***

       In case of an early termination or volume transfer according to this
       Clause 11.3, Alcan Zutphen is obliged to pay any social plan costs only
       over the natural wastage and any volume reduction in the natural Ohle
       business according to Clause 14 herein.

11.4   If the ownership of either Party is transferred to any third party other
       than an Affiliated Company ("Change of Control"), the other Party may
       terminate the PTA by written notice with immediate effect. Ownership for
       the purpose of this Clause means that the majority of the voting rights
       or more than 50 % of the Party's assets are transferred directly of
       indirectly to a third party, other than an Affiliated Company.

       In case Novelis GmbH's plant in Ohle or the majority of the assets of the
       plant in Ohle is sold to any third party that directly or indirectly
       competes with any Alcan business, Alcan Zutphen shall also have the right
       to terminate this PTA with immediate effect. In case of an IPO or MBO of
       Novelis GmbH's plant in Ohle, Alcan Zutphen shall have no right to
       terminate the PTA.

*** 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.

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12.    CONFIDENTIALITY

12.1   The terms of the Confidentiality provisions set forth in Section 11.07
       and in Section 11.08 of the Separation Agreement shall apply to any and
       all Confidential Information disclosed in the course of the Parties'
       interactions under this Agreement. This Section 12 of the Agreement sets
       out additional requirements regarding confidential information.

12.2   The term "Confidential Information" shall mean all data, documents and
       information, whether or not explicitly designated as being confidential,
       disclosed or to be disclosed by one Party to the other concerning the
       business operations, assets or affairs of the disclosing Party (including
       information transmitted in written, electronic, magnetic or other form,
       information transmitted orally and information gathered by a Party
       through visual inspections or observation or by any other means), and any
       and all information which may be developed or created, in whole or in
       part, directly or indirectly, from such information including all notes,
       summaries, analyses, compilations and other writings, but does not
       include information that: (a) at the time of delivery to the receiving
       Party has been or subsequently becomes generally available to the public
       other than as a result of disclosure by the receiving Party; (b) is or
       subsequently becomes available to the receiving Party on a
       non-confidential basis from a source who is not bound by this Agreement
       and is not otherwise under a legal obligation not to disclose such
       information; or (c) is required to be disclosed by applicable law or any
       governmental authority.

12.3   The term "Permitted Purpose" means the performance of obligations under
       this Agreement.

12.4   The Confidential Information to be shared shall be limited to that which
       would be shared with a Third Party service provider and shall not be used
       by either Party for any purpose other than a Permitted Purpose or in any
       way that is detrimental to the disclosing Party. In particular,

       12.4.1   The receiving Party shall not disclose any Confidential
                Information to any of its employees who does not have a need to
                know such Confidential Information in order to perform the
                Permitted Purpose;

       12.4.2   The receiving Party shall not use the Confidential Information
                other than for such purposes as shall be expressly permitted
                under this Agreement;

12.5   The obligations of confidentiality set out in this Section 12 shall
       continue in full force and effect for the duration of this Agreement and
       for a period of five (5) years following its termination

13.    NON COMPETITION

13.1   During a period of five years after the Effective Date of this PTA,
       Novelis GmbH and each of its Affiliated Companies shall not, without the
       prior written consent of Alcan Zutphen, directly or indirectly, for
       itself or for others, in any way work in or for, or have an interest in,
       any company or person or organisation within the European market (that
       includes all European countries, including Russia and the former Russian
       satellite states) which conduct activities competing with, the activities
       of the business of Alcan Zutphen related to the PFC business.

13.2   In case Novelis GmbH has failed to act in accordance with Clause 13.1, it
       shall, after being given written notice, pay to Alcan Zutphen a penalty
       of ***,

*** 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.

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       increased by a penalty of *** per day if Novelis fails to act in
       accordance with Clause 13.1 and continues the breach, without
       prejudice to any other claims and rights of Alcan Zutphen.

13.3   Should a Change of Control according to Section 11.4 occur and the
       Agreement be terminated by Alcan Zutphen, the latter shall have the
       option to acquire the relevant assets of the PFC production of Novelis
       GmbH for the FMP of any assets used in connection with the production of
       the PFCs.

14.    INDEMNIFICATION OF NOVELIS GMBH FOR LAY-OFF OR SOCIAL PLAN COSTS

14.1   Upon termination of this Agreement or in case of volume transfer
       according to Clause 11.3, Alcan Zutphen will indemnify Novelis GmbH for
       the costs for lay offs or a social plan for the termination of the
       employment agreements of the employees of Novelis GmbH that worked in the
       PFC business. Alcan Zutphen will be an equal party in the negotiations of
       the social plan, if the works council of the Ohle plant agrees. In case
       the works council does not agree on a participation of Alcan Zutphen to
       the social plan negotiations, Alcan Zutphen will not be obliged to
       indemnify Novelis GmbH for any social plan costs that exceed what was
       paid at an average in the last five years by Alcan Deutschland GmbH for
       lay offs of similar employees. The employees working in the PFC business
       will be listed in a document to be exchanged between the Parties.

14.2   Novelis GmbH undertakes to use natural fluctuations, re-allocation within
       Ohle or Affiliated Companies or termination of employees at Ohle plant to
       the extent that three (3) employees per Calendar Year, starting 1st
       January 2005 will be laid off or transferred within the Ohle plant. Such
       lay off costs will be borne by Novelis GmbH. In case the number of
       employees is not reduced by three employees per year, Alcan Zutphen will
       not be obliged to pay for any lay off or social plan costs connected with
       said employees, notwithstanding the agreed volume of PFCs.

14.3   Novelis GmbH undertakes to transfer as many employees as possible to
       other production facilities at its plant in Ohle or other production
       site, as legally possible. In case an employee that received a
       compensation according to a social plan is re-employed at Novelis GmbH or
       any of its Affiliated Companies within a period of two years after such
       compensation has been paid out, Novelis GmbH will reimburse Alcan Zutphen
       for the amount concerned paid by Alcan Zutphen according to Clause 14.1.

14.4   In the event of lay off costs until end *** Alcan Zutphen contributes
       Euro *** or ***% of occurring costs (whatever sum is the lower) to the
       costs incurred by Novelis GmbH. The non reimbursed costs for lay-offs
       shall be borne by Novelis GmbH. Any lay-off or social plan costs after
       *** will be at costs of Alcan Zutphen as regulated in Clause 14.1. In
       case the transfer business according to Clause 11.3 is caused by Novelis
       GmbH's decision (selling the business, underperformace or similar
       causes), Novelis GmbH is responsible for the social plan costs.

15.    OPTIONS AND RIGTHS OF FIRST REFUSAL

15.1   In the event that Alcan Zutphen terminates the PTA in whole or in part in
       accordance with Clause 11.3 or in the event that Novelis GmbH does not
       need the Tools/Stackers anymore to

*** 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.

                                       14
<PAGE>
       toll the volumes agreed between the Parties, Alcan Zutphen shall have the
       option to purchase such Tools/Stackers not needed by Novelis GmbH for
       fulfilling its tolling obligations for the FMP of said Tools/Stackers
       (call option). Such Tools/Stackers must be shipped to Alcan Zutphen
       within two weeks notwithstanding if the Parties agreed on the FMP or not.
       This two-week period starts upon termination of the PTA or upon written
       notice by Alcan that such option is exercised.

15.2   Alcan Zutphen shall have the right of first refusal for the Presses
       during the term of this PTA and for a period of 12 (twelve) Months after
       the termination of the PTA, notwithstanding the cause of such
       termination. Alcan Zutphen is obliged to respond within one month to any
       offers by Novelis GmbH.

15.3   Further options as granted within this PTA shall not be affected by this
       Clause 15.

16.    SEVERABILITY OF PROVISIONS

       If any provisions hereof should be held invalid or unenforceable the
       validity and enforceability of the remaining provisions shall not be
       affected. Any invalid or unenforceable provision shall to the extent
       possible be replaced with such provision that will allow the Parties
       hereto to achieve the intended economic result in a legally valid and
       effective manner.

17.    COMPLETE AGREEMENT -- AMENDMENTS -- WAIVERS

17.1   This PTA including the Appendixes constitutes the entire understanding
       and agreement between the parties with respect to the issues covered
       herein and there are no representations, understandings or agreement,
       oral or written, which are not included herein.

17.2   This PTA cannot be modified in any respect except by an instrument in
       writing executed by the duly authorised representatives of both Parties
       which instrument shall specifically state it is an amendment of the PTA
       and refer to this article. Such instrument shall then become a part of
       the PTA. No amendments or changes to the PTA shall be made in tolling
       orders, invoices or other form.

17.3   Any waiver, relaxation or concession that may be granted by either Party
       to the other in regard to any of the terms and conditions of the PTA
       shall be limited strictly to such waiver, relaxation or concession and
       shall not imply in future such waiver, relaxation or concession.

18.    NOTICES

       Any formal notice to be given under the PTA shall be in writing and shall
       be deemed to have been sufficiently given if delivered in person (against
       receipt), or by fax or telex (either against acknowledgement of receipt)
       or by registered mail, addressed to such person at the recipient, at such
       address as the recipient may notify to the other parties from time to
       time (and pending the first such notification to the relevant head office
       of the recipient).

19.    APPLICABLE LAW AND JURISDICTION

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<PAGE>
       This Agreement shall be governed by and construed in accordance with the
       law of the Federal Republic of Germany and any conflict of laws
       provisions. The Commercial Court (Kammer fur Handelssachen des
       Landgerichtes) in Hagen shall have exclusive jurisdiction for all
       disputes which arise from the PTA.

Alcan Packaging Zutphen                   Alcan Deutschland GmbH
Finsestraat 1                             Hannoversche Stra(beta)e 1
7202-CE Zutphen, The Netherlands          37075 Gottingen, Germany

-------------------------------------     -------------------------------------
Bert Meijer                               Nikolaus von Verschuer

-------------------------------------
Manfred Witzstrock

                                       16

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