Document:

<PAGE>
                                                                    EXHIBIT 10.9

                              FOIL SUPPLY AGREEMENT

                                     between

                            NOVELIS DEUTSCHLAND GMBH

                                  (as Supplier)

                                       and

                          ALCAN PACKAGING RORSCHACH AG

                                 (as Purchaser)

         IN CONNECTION WITH ALCAN'S OPERATIONS AT RORSCHACH, SWITZERLAND

         DATED DECEMBER ___, 2004, WITH EFFECT AS OF THE EFFECTIVE DATE

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                                   PAGE
                                                                                                                   ----

<S>   <C>                                                                                                         <C>
1.       DEFINITIONS AND INTERPRETATION............................................................................  1
2.       PURCHASE AND SUPPLY.......................................................................................  6
3.       SUPPLY OBLIGATIONS........................................................................................  8
4.       TEMPORARY PLANT CLOSURE...................................................................................  9
5.       FORCE MAJEURE.............................................................................................  9
6.       PRICE AND PAYMENT......................................................................................... 10
7.       QUALITY, WARRANTIES AND DISCLAIMERS....................................................................... 11
8.       ASSIGNMENT................................................................................................ 12
9.       EARLY TERMINATION......................................................................................... 12
10.      REPRESENTATIONS AND WARRANTIES............................................................................ 13
11.      CONFIDENTIALITY........................................................................................... 14
12.      DISPUTE RESOLUTION........................................................................................ 15
13.      MISCELLANEOUS............................................................................................. 16

</TABLE>

Annex A - Conversion Prices
Annex B - TOP 20 Specifications
Annex C - NON-TOP 20 Specifications

<PAGE>

                             FOIL SUPPLY AGREEMENT

THIS AGREEMENT is dated December ____, 2004, with effect as of the Effective
Date.

BETWEEN:  NOVELIS DEUTSCHLAND GMBH, with its registered office at
          Hanoverschestrasse, 37075 Goettingen, Germany, a limited liability
          company incorporated under the laws of Germany (the "SUPPLIER");

AND:      ALCAN PACKAGING RORSCHACH AG, with its registered office at
          Industriestrasse 35, CH 9401 Rorschach, a limited liability company
          incorporated under the laws of Switzerland (the "PURCHASER").

RECITALS:

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

WHEREAS the Separated Businesses (as defined in the Separation Agreement) held
by Novelis Inc. include the manufacture by the Supplier (being a wholly owned
Subsidiary of Novelis Inc.) of rolled aluminum, in particular aluminum foil
conforming to the Specifications (as defined below), including at the Supplier's
plants located in Norf, Ludenscheid and Ohle, Germany.

WHEREAS the business of Alcan Inc. includes, inter alia, the manufacture by the
Purchaser (being a wholly owned Subsidiary of Alcan Inc.) of packaging products
incorporating aluminum foil, at the Purchaser's plant located at Rorschach,
Switzerland.

WHEREAS the Supplier wishes to supply, and the Purchaser wishes to purchase,
subject to the terms and conditions of this Agreement, certain minimum
quantities of Foil (as defined below), as set out herein.

WHEREAS the Parties have entered into this Agreement in order to set forth such
terms and conditions.

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

1.       DEFINITIONS AND INTERPRETATION

1.1      DEFINITIONS

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

         "AFFECTED PARTY" has the meaning set forth in Section 5.1.

<PAGE>

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

         "AGREEMENT" means this Foil Supply Agreement, including all of the
         Annexes hereto.

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

         "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.

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

         "BUSINESS DAY" means any day excluding (i) Saturday, Sunday and any
         other day which, in the Canton of St. Gallen, Switzerland, or in the
         City of Frankfurt/Main, Germany is a legal holiday or (ii) a day on
         which banks are authorized by any local law to close in the Canton of
         St. Gallen, Switzerland, or in the City of Frankfurt/Main, Germany.

         "CLASSIFICATION" means the classification of Foil as either TOP 20 or
         NON-TOP 20.

         "COMMERCIALLY REASONABLE EFFORTS" means the efforts that a reasonable
         and prudent Person desirous of achieving a business result would use in
         similar circumstances to ensure that such result is achieved as
         expeditiously as possible in the context of commercial relations of the
         type contemplated in this Agreement; provided, however, that an
         obligation to use Commercially Reasonable Efforts under this Agreement
         does not require the Person subject to that obligation to assume any
         material obligations or pay any material amounts to a Third Party or
         take actions that would reduce the benefits intended to be obtained by
         such Person under this Agreement.

         "CONFIDENTIAL INFORMATION" has the meaning set forth in Section 11.1.

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

         "CONTRACT PRICE" means the price per Tonne, payable by the Purchaser
         for Foil, as determined in accordance with Section 6.

         "CONVERSION PRICE" means that part of the Contract Price reflecting the
         conversion by the Supplier of aluminum metal to Foil, set out in ANNEX
         A in respect of each Classification of Foil.

         "DATE OF DELIVERY" means the date on which Foil supplied by the
         Supplier is delivered DDU at the Delivery Site.

                                     - 2 -
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         "DDU" means, to the extent not inconsistent with the terms of this
         Agreement, DDU as defined in Incoterms 2000, published by the ICC,
         Paris, France, as amended from time to time.

         "DEFAULTING PARTY" has the meaning set forth in Section 9.

         "DELIVERY SITE" means the Purchaser's Rorschach facility in
         Switzerland, located at Langrutistrasse, CH 9403 Goldach, Switzerland.

         "DISCOUNT" means, for any Quarter, the amount equal to 1% of the LME
         Price calculated for such Quarter.

         "DISPUTE" has the meaning set forth in Section 12.1.

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

         "EC DUTY PAID PREMIUM" means, for any Quarter, the arithmetic average
         of the daily published "EC DUTY PAID PREMIUM" prices, as published in
         Metal Bulletin on each day during the Quarter preceding such Quarter,
         expressed in Dollars.

         "EFFECTIVE DATE" means the date on which the Supplier becomes a
         Subsidiary of Arcustarget Inc. which date is expected, as of the date
         of this Agreement, to be on or before December 31, 2004.

         "ESCALATION NOTICE" has the meaning set out in Section 12.2.

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

         "EVENT OF DEFAULT" has the meaning set forth in Section 9.

         "FIRM ORDERS" has the meaning set forth in Section 2.7.

         "FOIL" means aluminum foil conforming to the Specifications, produced
         by the Supplier at any of the Supplier Facilities.

         "FORCE MAJEURE" has the meaning set forth in Section 5.2.

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

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

         "ICC" means the International Chamber of Commerce.

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

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

                                     - 3 -
<PAGE>

         "LME PRICE" means, for each Quarter, the arithmetic average LME 3 month
         seller's and buyer's price for Primary High Grade Aluminum, as
         published in Metal Bulletin on each day during the Quarter preceding
         such Quarter, expressed in Dollars. As an example, the LME Price for
         the Quarter commencing January 1, 2005 will be based on aluminum prices
         published during the Quarter commencing October 1, 2004.

         "LOCAL MARKET PREMIUM" means an amount equal to Dollars 18.00 per
         Tonne.

         "METAL PRICE" means, subject to the application of Section 6.2, in
         respect of the supply of Foil made in any Quarter, the aggregate of (i)
         the LME Price for such Quarter, plus (ii) the EC Duty Paid Premium for
         such Quarter, and minus (iii) the Discount for such Quarter.

         "MONTH" means each calendar month throughout the Term of this
         Agreement.

         "MONTHLY FORECAST" has the meaning set out in Section 2.5.

         "NON-TOP 20 SPECIFICATIONS" means specifications for NON-TOP 20
         aluminum foil as set out in ANNEX C.

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

         "OTIF" has the meaning set forth in Section 3.4.

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

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

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

         "PURCHASER'S BUDGET" has the meaning set out in Section 2.4.

         "QUARTER" means each period of 3 Months commencing on each of January
         1, April 1, July 1 and October 1.

         "REPRESENTATIVES" means, with respect to any Person, any of such
         Person's directors, officers, employees, agents, consultants, advisors,
         accountants or attorneys.

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

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

         "SPECIFICATIONS" means the TOP 20 Specifications or the NON-TOP 20
         Specifications, as applicable.

         "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.

                                     - 4 -
<PAGE>

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

         "SUPPLIER FACILITIES" means the production facilities of the Supplier
         located at Norf, Ludenscheid and Ohle, Germany.

         "TERM" has the meaning set forth in Section 1.4.

         "TERMINATING PARTY" has the meaning set forth in Section 9.

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

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

         "TOP 20 SPECIFICATIONS" means the specifications for TOP 20 aluminum
         foil as set out in ANNEX B.

         "TONNE" means 1,000 kilograms.

         "WEEKLY FORECAST" has the meaning set forth in Section 2.6.

         "YEAR" means each period of 12 consecutive Months throughout the Term
         of this Agreement, commencing on January 1 of each calendar year,
         provided that the first Year of this Agreement shall commence on the
         Effective Date and shall terminate on December 31, 2005.

         "YEARLY PURCHASE AMOUNT" has the meaning set out in Section 3.1.

1.2      CURRENCY

         All references to currency herein are to Euros, unless otherwise
         specified.

1.3      EFFECTIVENESS

         This Agreement shall come into effect on the Effective Date. The
         Supplier's obligations to supply Foil and the Purchaser's obligations
         to purchase Foil under this Agreement shall commence on the Effective
         Date.

1.4      TERM

         The term of this Agreement (the "TERM") shall be from the Effective
         Date until the date which is the five (5) year anniversary thereof,
         unless terminated earlier as contemplated in Section 1.5.

1.5      TERMINATION

         This Agreement shall terminate:

         (a)      upon expiry of the Term;

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

         (c)      pursuant to Section 5.6 as a result of Force Majeure; or

                                     - 5 -
<PAGE>

         (d)      upon the occurrence of an Event of Default, in accordance with
                  Section 9.

2.       PURCHASE AND SUPPLY

2.1      The Purchaser agrees to purchase Foil from the Supplier, and the
         Supplier agrees to sell Foil to the Purchaser, all in accordance with
         and subject to the terms of this Agreement.

2.2      All deliveries of Foil pursuant to this Agreement shall be governed by
         the terms of this Agreement and shall be made DDU Incoterms 2000
         (provided it is not inconsistent herewith); the place of delivery will
         be the Delivery Site, unless otherwise indicated in the Firm Order in
         respect of such delivery, in which case the place of delivery shall be
         the location indicated in such Firm Order.

2.3      The range of Foil Classifications purchased and supplied hereunder
         shall consist of the following:

<TABLE>
<CAPTION>

               Type                                             Description
               ----                                             -----------
<S>                     <C>
         ---------------------------------------------------------------------------------------------------------
         TOP 20            o   Foil specifications manufactured by the Supplier in a reiterative manner

                           o   Specification consisting of a standard set of technical properties (alloy, temper,
                               width, gauge) for Foilstock in upstream processes allowing the Supplier to
                               manufacture maximum variety (width, gauge) of specifications for the Purchaser
         ---------------------------------------------------------------------------------------------------------
         Non - TOP         o   Foil specifications manufactured by the Supplier on a non-reiterative manner
         ---------------------------------------------------------------------------------------------------------
         Other             o   Trials, special products and any other
         ---------------------------------------------------------------------------------------------------------

</TABLE>

2.4      No later than August 30 in each Year, the Purchaser will provide to the
         Supplier an annual Foil purchase budget (the "PURCHASER'S BUDGET") for
         the following Year. The Purchaser's Budget shall identify the volume,
         in Tonnes, of Foil to be supplied by the Supplier to the Purchaser in
         the following Year. The Purchaser's Budget for the Year commencing on
         the Effective Date is *** Tonnes. The Purchaser hereby undertakes to
         place Firm Orders in each Year in respect of a quantity of Foil which
         is not less than 93% and not more than 107% of the Purchaser's Budget
         for such Year.

2.5      The Purchaser shall provide to the Supplier, on the last Business Day
         of each Month, a forecast, in Tonnes, of the Foil requirements of the
         Purchaser for the next succeeding 4 Months (the "MONTHLY FORECAST").
         The Purchaser shall utilize its Commercially Reasonable Efforts to make
         such forecasts accurate, but shall not be bound by such forecasts. The
         Purchaser undertakes to place Firm Orders for quantities of Foil in
         each Month which are within the range identified below for such Month,
         in each case by reference to the latest Monthly Forecast delivered in
         respect of such Month:

<TABLE>
<CAPTION>
                Month 4                Month 3              Month 2               Month 1
         ---------------------- -------------------- --------------------- --------------------
<S>                           <C>                  <C>                   <C>
         +/-8% of the Monthly   +/-7% of the         +/-6% of the          +/-5% of the
         Forecast               Monthly Forecast     Monthly Forecast      Monthly Forecast
         ---------------------- -------------------- --------------------- --------------------
</TABLE>

*** 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>

2.6      The Purchaser shall provide to the Supplier, on the last Business Day
         of each week, a forecast, in Tonnes, of the Foil Conforming to TOP 20
         Specifications requirements of the Purchaser for the seventh (7th)
         succeeding week (and, in case of the first such forecast delivered
         during the Term of this Agreement, also for each of the six (6) weeks
         next succeeding the week in which such forecast is delivered) (the
         "WEEKLY FORECAST"). The Purchaser shall use its Commercially Reasonable
         Efforts to make such forecasts accurate, but shall not be bound by such
         forecasts.

2.7      The Purchaser shall provide to the Supplier, on the first Business Day
         of each week, firm orders (the "FIRM ORDERS") for:

         (a)      the quantity of Foil conforming to TOP 20 Specifications to be
                  delivered hereunder in the third (3rd) succeeding week (and,
                  in case of the first Firm Order delivered hereunder, the
                  quantity to be delivered in each of the two (2) weeks next
                  following the week in which the Firm Order is delivered), and

         (b)      the quantity of Foil conforming to the NON-TOP 20
                  Specifications to be delivered hereunder in the seventh (7th)
                  succeeding week (and, in case of the first Firm Order
                  delivered hereunder, the quantity to be delivered in each of
                  the six (6) weeks next following the week in which the Firm
                  Order is delivered).

         The Purchaser shall be bound to purchase from the Supplier the
         quantities of Foil identified in such Firm Orders. Each Firm Order
         shall include a delivery schedule and delivery plan in respect of the
         Foil to be delivered in such week, and shall identify the place of
         delivery if it is to be different from the Delivery Site. The Firm
         Orders delivered pursuant to this Section 2.7 shall be used as the
         basis for delivery performance evaluation in accordance with Section
         3.4.

2.8      The Purchaser shall allocate the amount that is purchased in each Month
         as evenly as possible in the Firm Orders delivered in respect of each
         week in such Month.

2.9      Deliveries shall be made during normal working hours, being 07.00 -
         16.00 EST or European Summer Time, at the Delivery Site. If the
         Purchaser requires delivery outside such normal working hours, the
         Supplier shall use its Commercially Reasonable Efforts to supply Foil
         as requested by the Purchaser.

2.10     Title and risk of damage to, and loss of, Foil shall pass to the
         Purchaser upon DDU delivery at the Delivery Site.

2.11     The Purchaser shall use its Commercially Reasonable Efforts to minimize
         the turn-around time of the Supplier's transportation to the Delivery
         Site. The Purchaser shall ensure that all Foil delivered to the
         Delivery Site shall be unloaded within one Business Day, unless
         otherwise agreed by the Parties.

2.12     At the request of the Supplier, the Purchaser's Budget may be audited
         and verified by an external auditor, which shall be
         PricewaterhouseCoopers, Switzerland, unless otherwise agreed by the
         Parties, which audit and verification shall take place at the expense
         of the Purchaser, provided it takes place no more than once per year.

                                     - 7 -
<PAGE>

3.       SUPPLY OBLIGATIONS

3.1      The "YEARLY PURCHASE AMOUNT" for each Year  shall be as follows:

         (a)      during the Year commencing on the Effective Date, 95% of the
                  Purchaser's Budget for such Year;

         (b)      during the Year commencing January 1, 2006, 94% of the
                  Purchaser's Budget for such Year;

         (c)      during the Year commencing January 1, 2007, 93% of the
                  Purchaser's Budget for such Year;

         (d)      during the Year commencing January 1, 2008, 92% of the
                  Purchaser's Budget for such Year; and

         (e)      during the Year commencing January 1, 2009, 90% of the
                  Purchaser's Budget for such Year.

3.2      The Supplier shall be obligated hereunder to deliver, in response to
         Firm Orders received from the Purchaser, an aggregate quantity of Foil
         in each Year which is not less than the Yearly Purchase Amount for such
         Year.

3.3      The Supplier shall be obligated to deliver, in response to Firm Orders
         received from the Purchaser, a quantity of Foil in each Month which is
         within the range identified in respect of such Month in Section 2.5, by
         reference to the latest Monthly Forecast for such Month delivered by
         the Purchaser pursuant to Section 2.5.

3.4      Each week, the Supplier's performance shall be evaluated on the basis
         of the percentage (%) of the deliveries made on an "on time in full"
         ("OTIF") basis. The Supplier is obligated to provide delivery
         performance of 90% OTIF. If the Supplier achieves a delivery
         performance below 90% OTIF over a period of 3 (three) consecutive
         Months, the Purchaser is entitled to require the Supplier, by written
         notice, to hold at the Supplier's premises a "safety stock" of 100
         Tonnes of Foil having Specifications identified by the Purchaser in
         such notice, and the Supplier shall ensure that it maintains such
         quantity of such Foil at its premises at all times after receiving such
         notice from the Purchaser.

3.5      (a)      The Supplier shall be responsible for sourcing the aluminum
                  ingots or sheet aluminum required for production of Foil to be
                  supplied to the Purchaser hereunder, provided that the
                  Purchaser may, but shall not be obligated to, provide notice
                  to the Supplier at least eight (8) weeks prior to a scheduled
                  delivery of Foil hereunder (a "SCHEDULED DELIVERY") that it
                  shall provide, or shall arrange for Alcan Inc. or any of its
                  Affiliates to provide, aluminum remelt ingot of quality
                  99.7%/A7E/P1020, to the Supplier for use in production of Foil
                  to be delivered as part of such Scheduled Delivery.

         (b)      In calculating the Contract Price payable for the Scheduled
                  Delivery, the Metal Price component of the Contract Price
                  shall be equal to zero for the quantity of ingot which the
                  Purchaser actually supplied or arranged to have supplied to
                  the Supplier in accordance with Section 3.5(a).

                                     - 8 -
<PAGE>

         (c)      Failure by the Purchaser to arrange for delivery to the
                  Supplier any quantity of aluminum ingot shall not relieve the
                  Supplier from any of its obligations hereunder, including the
                  obligation to supply the agreed quantity of Foil to the
                  Purchaser.

4.       TEMPORARY PLANT CLOSURE

4.1      Where the Supplier plans a temporary maintenance closure of, or a
         period of reduced production at, the plant from which Foil is sourced
         (or any part of such plant or any individual production unit) and which
         may affect the Supplier's ability to supply Foil to the Purchaser in
         accordance with the Supplier's obligations hereunder, it shall notify
         the Purchaser accordingly not less than 7 (seven) weeks in advance. The
         Supplier and the Purchaser will agree an action plan to avoid any
         bottleneck in the supply of Foil to the Purchaser.

4.2      During any period of temporary closure or reduced production as
         envisaged in this Section 4, the Supplier shall supply Foil to the
         Purchaser on a preferential basis.

5.       FORCE MAJEURE

5.1      EFFECT OF FORCE MAJEURE

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

5.2      DEFINITION

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

5.3      NOTICE

         Upon the occurrence of an event of Force Majeure, the Affected Party
         shall promptly give notice to the other Party hereto setting forth the
         details of the event of Force Majeure and an estimate of the likely
         duration of the Affected Party's inability to fulfil

                                     - 9 -
<PAGE>

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

5.4      PRO RATA ALLOCATION

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

5.5      CONSULTATION

         Within thirty (30) days of the cessation of the event of Force Majeure,
         the Parties shall consult with a view to reaching agreement as to the
         Supplier's obligation to provide, and the Purchaser's obligation to
         take delivery of, that quantity of Foil that could not be sold and
         purchased hereunder because of the event of Force Majeure, provided
         that any such shortfall quantity has not been replaced by substitute
         aluminum foil pursuant to the terms above.

         In the absence of any agreement by the Parties, failure to deliver or
         accept delivery of Foil which is excused by or results from the
         operation of the foregoing provisions of this Section 5 shall not
         extend the Term of this Agreement and the quantities of Foil to be sold
         and purchased under this Agreement shall be reduced by the quantities
         affected by such failure.

5.6      TERMINATION

         (a)      If an event of Force Majeure where the Affected Party is the
                  Supplier shall continue for more than ninety (90) days, then
                  the Purchaser shall have the right to terminate this
                  Agreement.

         (b)      If an event of Force Majeure where the Affected Party is the
                  Purchaser shall continue for more than ninety (90) days, then
                  the Supplier shall have the right to terminate this Agreement.

6.       PRICE AND PAYMENT

6.1      The Contract Price for Foil purchased and supplied under this Agreement
         in each of Years 1, 2 and 3 shall be the aggregate of the Metal Price,
         the Conversion Price and the Local Market Premium applicable to such
         Foil and, in each of Year 4 and 5 shall be agreed to by the Parties
         prior to commencement of Year 4.

6.2      In respect of any supply of Foil hereunder which has been made
         utilizing aluminum ingot supplied by Alcan or any of its Affiliates to
         the Supplier in accordance with

                                     - 10 -
<PAGE>

         Section 3.5, the Metal Price applicable to such Foil shall be equal to
         zero, and the Contract Price payable in respect of such Foil shall be
         the Conversion Price applicable to such Foil.

6.3      Within ten (10) days following each delivery of Foil, the Supplier
         shall submit to the Purchaser an invoice in respect thereof. An invoice
         submitted by facsimile shall be regarded as a valid invoice for
         purposes of this Agreement. All invoices shall be denominated in Euros.
         For purposes of converting any portion of the Contract Price that may
         be denominated in U.S. Dollars to Euros, the exchange rate to be used
         shall be the rate applicable on the date of the invoice as published by
         Metal Bulletin on such day.

6.4      All invoices submitted pursuant to Section 6.3 shall be paid in Euros
         no later than 30 days after the date of the invoice. Payment shall be
         made to the Supplier's bank account, details of which shall be provided
         by the Supplier to the Purchaser from time to time in writing.

6.5      In addition to the Contract Price calculated pursuant to Section 6.1,
         the Purchaser shall pay to the Supplier all applicable Sales Taxes,
         which shall be identified and invoiced in the invoices delivered
         pursuant to Section 6.3.

7.       QUALITY, WARRANTIES AND DISCLAIMERS

7.1      The Supplier warrants for a period of 18 months from the date of
         delivery that all Foil supplied hereunder shall conform to the
         Specifications.

7.2      The Purchaser may request a change of the Specifications upon a minimum
         of 3 (three) Months written notice to the Supplier, which notice
         includes an updated form of ANNEX B and ANNEX C containing the proposed
         revised Specifications. The Supplier will use all its Commercially
         Reasonable Efforts to accommodate such change provided that it is
         technically possible. In this event, the Conversion Price shall be
         adjusted, with the agreement of the Purchaser and the Supplier, to
         reflect the resulting increase or decrease in the costs to the Supplier
         of conversion resulting from producing Foil to such amended
         Specifications. If the Purchaser and the Supplier are unable to agree
         on the amount of such increase or reduction in the Conversion Price
         within 30 days after submission by the Supplier to the Purchaser of a
         proposal for such increase or reduction, the Supplier shall provide to
         the Purchaser detailed calculations of the cost savings or increase to
         the Purchaser. The Purchaser shall consider such calculation in good
         faith and either adopt or reject such calculation by notice to the
         Supplier within 30 days after receipt of such calculations. Upon
         agreement by the Parties, this Agreement shall be deemed amended by
         replacing ANNEX B and ANNEX C with the updated form of ANNEX B and
         ANNEX C provided by the Purchaser and replacing ANNEX A with an updated
         ANNEX A setting out the new Conversion Prices agreed to by the
         Purchaser and the Supplier, all such amendments to be effective on the
         date of first supply hereunder of Foil conforming to the amended new
         Specifications. If the Parties do not reach an agreement, the current
         ANNEX B and ANNEX C shall remain unmodified and continue to be
         applicable.

7.3      The Purchaser shall visually inspect the Foil promptly following
         delivery, and notify the Supplier within fourteen (14 ) days thereafter
         of any defects that were or should have been apparent from such
         inspection.

                                     - 11 -
<PAGE>

7.4      Where the Supplier has supplied the Purchaser with Foil which does not
         conform to the Specifications and (if applicable) the Purchaser has
         given notice in accordance with Section 7.3, the Supplier will either
         replace the defective Foil with Foil conforming to the Specifications
         at no extra charge (and will collect the defective Foil at its own
         expense), or will refund the Contract Price (along with any applicable
         taxes or other charges paid in respect thereof) paid by the Purchaser
         for the defective Foil. Where the Supplier has otherwise breached its
         supply obligations under Section 3, the Purchaser shall be entitled to
         a compensation payment in an amount equal to the difference between the
         Contract Price applicable to the supplies of Foil in question, and the
         best reasonably available price at which it is able to obtain
         substitute Foil (including the difference in any transport costs and
         import duties borne by the Purchaser). In addition, the Purchaser shall
         be entitled to compensation:

         (a)      for the difference between the price paid for unusable Foil
                  and its scrap value, and

         (b)      for the cost to such Purchaser of its machinery downtime
                  directly resulting from such breach up to a maximum amount of
                  twice the invoiced value of the supplied Foil.

7.5      Notwithstanding any other provisions in this Agreement, the Supplier
         will be liable for, and shall indemnify the Purchaser in respect of,
         all Liabilities in respect of death or personal injury to any person to
         the extent that this results from the negligent supply of Foil not
         conforming to the Specifications.

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

8.       ASSIGNMENT

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

9.       EARLY TERMINATION

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

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

         (a)      such Party defaults in payment of any payments which are due
                  and payable by it pursuant to this Agreement, and such default
                  is not cured within sixty (60) days following receipt by the
                  Defaulting Party of notice of such default;

         (b)      such Party breaches any of its material obligations pursuant
                  to this Agreement (other than as set out in paragraph (a)
                  above), and fails to cure it within sixty

                                     - 12 -
<PAGE>

                  (60) days after receipt of notice from the non-defaulting
                  Party specifying the default with reasonable detail and
                  demanding that it be cured, provided that if such breach is
                  not capable of being cured within sixty (60) days after
                  receipt of such notice and the Party in default has diligently
                  pursued efforts to cure the default within the sixty (60) day
                  period, no Event of Default under this paragraph (b) shall
                  occur;

         (c)      in case of the Purchaser, Alcan Inc., or in case of the
                  Supplier, Novelis Inc., breaches any representation or
                  warranty, or fails to perform or comply with any covenant,
                  provision, undertaking or obligation in or of the Separation
                  Agreement;

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

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

10.      REPRESENTATIONS AND WARRANTIES

10.1     REPRESENTATIONS AND WARRANTIES

         Each Party represents and warrants to and in favour of the other Party
         as follows and acknowledges that the other Party is relying upon such
         representations and warranties in connection with the matters
         contemplated by this Agreement:

         (a)      it is duly incorporated and organized and is validly existing
                  under the laws of its jurisdiction of incorporation and has
                  the corporate power and authority to own its assets and to
                  conduct its businesses and to perform its obligations
                  hereunder;

         (b)      the execution and delivery of this Agreement by it and the
                  completion by it of the transactions contemplated herein, do
                  not and will not result in the breach of, or violate any term
                  or provision of, its articles or by-laws;

         (c)      it is not subject to any outstanding injunction, judgment or
                  order of any Governmental Authority which would prevent or
                  materially delay the transactions contemplated by this
                  Agreement; there are no civil, criminal or administrative
                  claims, actions, suits, demands, proceedings, hearings or
                  investigations pending or, to the Party's knowledge,
                  threatened, at law, in equity or otherwise, in, before, or by,
                  any Governmental Authority which (if successful) would prevent
                  or materially delay the consummation of the transactions
                  contemplated by this Agreement;

         (d)      no dissolution, winding up, bankruptcy, liquidation or similar
                  proceeding has been commenced, or is pending or proposed, in
                  respect of it; and

         (e)      the execution and delivery of this Agreement and the
                  completion of the transactions contemplated herein, have been
                  duly approved by its Managing

                                     - 13 -
<PAGE>

                  Director and this Agreement constitutes legal, valid and
                  binding obligations of such Party enforceable against it in
                  accordance with its terms, subject to legislation relating to
                  bankruptcy, insolvency, reorganization and other similar
                  legislation of general application and other laws affecting
                  the enforcement of creditors' rights generally, to general
                  principles of equity and limitations upon the enforcement of
                  indemnification for fines or penalties imposed by law and to
                  the discretionary power of the courts as regards specific
                  performance or injunctive relief.

11.      CONFIDENTIALITY

11.1     Subject to Section 11.3, each of the Parties shall hold, and shall
         cause its respective Affiliates (whether now an Affiliate or hereafter
         becoming an Affiliate) and its Representatives to hold, in strict
         confidence, with at least the same degree of care that it applies to
         its own confidential and proprietary information, all confidential and
         proprietary information concerning the other Party and its respective
         Affiliates (whether now an Affiliate or hereafter becoming an
         Affiliate) that is either in its possession or is furnished by such
         other Party or Affiliates (whether now an Affiliate or hereafter
         becoming an Affiliate) of any such Party or its Representatives at any
         time pursuant to this Agreement or the transactions contemplated hereby
         (any such information referred to herein as "CONFIDENTIAL
         INFORMATION"), and shall not use any such Confidential Information
         other than for such purposes as shall be expressly permitted hereunder.
         Notwithstanding the foregoing, Confidential Information shall not
         include information that is or was:

         (i)      in the public domain through no fault of such Party or any of
                  its Affiliates (whether now an Affiliate or hereafter becoming
                  an Affiliate) or any of its respective Representatives,

         (ii)     lawfully acquired by such Party or any of its Affiliates
                  (whether now an Affiliate or hereafter becoming an Affiliate)
                  from a Third Party not bound by a confidentiality obligation,
                  or

         (iii)    independently generated or developed by Persons who do not
                  have access to, or descriptions of, any such confidential or
                  proprietary information of the other Party (or any of its
                  Affiliates (whether now an Affiliate or hereafter becoming an
                  Affiliate)).

11.2     Each Party agrees not to release or disclose, or permit to be released
         or disclosed, any Confidential Information to any other Person, except
         its Representatives who need to know such Confidential Information (who
         shall be advised of their obligations hereunder with respect to such
         Confidential Information), except in compliance with Section 11.3.

11.3     In the event that any Party or any of its Affiliates (whether now an
         Affiliate or hereafter becoming an Affiliate) either determines on the
         advice of its counsel that it is required to disclose any Confidential
         Information pursuant to Applicable Law or receives any demand under
         lawful process or from any Governmental Authority to disclose or
         provide Confidential Information of the other Party (or any Affiliate
         (whether now an Affiliate or hereafter becoming an Affiliate) of such
         other Party), such Party shall, to the extent permitted by Applicable
         Law, notify the other Party prior to it or its Affiliates (whether now
         an Affiliate or hereafter becoming an Affiliate) disclosing or
         providing

                                     - 14 -
<PAGE>

         such Confidential Information, and shall use its Commercially
         Reasonable Efforts to cooperate at the expense of the requesting Party
         in seeking any reasonable protective arrangements requested by such
         other Party. Subject to the foregoing, the Person that receives such
         request may thereafter disclose or provide such Confidential
         Information to the extent (but only to the extent) required by such
         Applicable Law (as so advised by legal counsel) or by lawful process or
         by such Governmental Authority and shall promptly provide the Person
         that receives such request with a copy of the Confidential Information
         so disclosed, in the same form and format as disclosed, together with a
         list of all Persons to whom such Confidential Information was
         disclosed.

12.      DISPUTE RESOLUTION

12.1     DISPUTES

         The provisions of this Section 12 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 (a "DISPUTE").

12.2     NEGOTIATION

         The Parties hereby undertake to attempt in good faith to resolve any
         Dispute by way of negotiation between senior executives of the Parties
         who have authority to settle such Dispute. In furtherance of the
         foregoing, any Party may initiate the negotiation by way of a notice
         (an "ESCALATION NOTICE") demanding an in-person meeting involving
         representatives of the Parties at a senior level of management of the
         Parties (or if the Parties agree, of the appropriate strategic business
         unit or division within such Party). A copy of any Escalation Notice
         shall be given to the Chief Legal Officer of each Party (which copy
         shall state that it is an Escalation Notice pursuant to this
         Agreement). Any agenda, location or procedures for such negotiation may
         be established by the Parties from time to time; provided, however,
         that the negotiations shall be completed within thirty (30) days of the
         date of the Escalation Notice or within such longer period as the
         Parties may agree in writing prior to the expiration of the initial
         thirty-day period.

12.3     ARBITRATION

         (a)      Any Dispute which has not been resolved by negotiation as
                  provided herein within thirty (30) days of the date of the
                  Escalation Notice or such extended period as may be agreed to
                  by the Parties, shall be referred to and finally resolved by
                  arbitration in accordance with the Arbitration Rules of the
                  ICC then in force.

         (b)      The arbitral tribunal shall consist of three arbitrators. The
                  place of arbitration shall be Zurich, Switzerland. The
                  language of the arbitration, and all communications in respect
                  thereof, shall be in English.

         (c)      The costs of the arbitration shall be fixed by the arbitral
                  tribunal and shall be borne by the unsuccessful Party, unless
                  the arbitral tribunal, in its discretion, determines a
                  different apportionment, taking all relevant circumstances
                  into account. The costs of arbitration include: (i) the fees
                  and disbursements of the arbitrators, (ii) reasonable travel
                  and other expenses of witnesses; (iii) the reasonable fees and
                  expenses of expert witnesses; and (iv) the costs of legal

                                     - 15 -
<PAGE>

                  representation and assistance, to the extent that the arbitral
                  tribunal determines that the amount of such costs is
                  reasonable.

         (d)      The arbitral tribunal shall endeavour to issue its award
                  within sixty (60) days of the last hearing of the substantive
                  issues in dispute between the Parties; however, the arbitral
                  tribunal shall not lose jurisdiction if it fails to respect
                  this delay. The arbitral award shall be final and binding.

         (e)      Neither the Parties (including their auditors and insurers)
                  nor their counsel and any Person necessary to the conduct of
                  the arbitration nor the arbitrators shall disclose the
                  existence, content (including submissions and any evidence or
                  documents presented or exchanged), or results of any
                  arbitration hereunder without the prior written consent of the
                  Parties, except as required by Applicable Law or the
                  applicable rules of an applicable stock exchange.

12.4     CONTINUING OBLIGATIONS

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

13.      MISCELLANEOUS

13.1     CONSTRUCTION

         In this Agreement and in the Annexes hereto, unless a clear contrary
         intention appears:

         (a)      the singular number includes the plural number and vice versa;

         (b)      reference to any Person includes such Person's successors and
                  assigns but, if applicable, only if such successors and
                  assigns are not prohibited by this Agreement, and reference to
                  a Person in a particular capacity excludes such Person in any
                  other capacity or individually;

         (c)      reference to any gender includes each other gender;

         (d)      reference to any agreement, document or instrument means such
                  agreement, document or instrument as amended, modified,
                  supplemented or restated and in effect from time to time in
                  accordance with the terms thereof subject to compliance with
                  the requirements set forth herein;

         (e)      reference to any Applicable Law means such Applicable Law as
                  amended, modified, codified, replaced or re-enacted, in whole
                  or in part, and in effect from time to time, including rules
                  and regulations promulgated thereunder, and reference to any
                  section or other provision of any Applicable Law means that
                  provision of such Applicable Law from time to time in effect
                  and constituting the substantive amendment, modification,
                  codification, replacement or re-enactment of such section or
                  other provision;

         (f)      "herein", "hereby", "hereunder," "hereof," "hereto," and words
                  of similar import shall be deemed references to this Agreement
                  as a whole and not to any particular Article, Section or other
                  provision hereof;

                                     - 16 -
<PAGE>

         (g)      "including" (and with correlative meaning "include") means
                  including without limiting the generality of any description
                  preceding such term;

         (h)      the Table of Contents and headings are for convenience of
                  reference only and shall not affect the construction or
                  interpretation of this Agreement;

         (i)      with respect to the determination of any period of time,
                  "from" means "from and including" and "to" means "to but
                  excluding"; and

         (j)      references to documents, instruments or agreements shall be
                  deemed to refer as well to all addenda, exhibits, schedules or
                  amendments thereto.

13.2     PAYMENT TERMS

         Any amount to be paid or reimbursed by one Party to the other under
         this Agreement, save as expressly provided in Sections 2, 3 and 6,
         shall be paid or reimbursed hereunder within thirty (30) days after
         presentation of an invoice or a written demand therefor and setting
         forth, or accompanied by, reasonable documentation or reasonable
         explanation supporting such amount.

13.3     NOTICES

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

         IF TO THE PURCHASER, TO:

         Alcan Packaging Rorschach AG
         Industriestrasse 35
         CH 9401 Rorschach

         Fax:         +41 71 844 3564

         Attention:   Dr. Joachim Schuppe

         IF TO THE SUPPLIER, TO:

         Novelis Deutschland GmbH
         Hanoverschestrasse,
         37075 Goettingen,
         Germany

         Fax: o

         Attention:   o

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

                                     - 17 -
<PAGE>

13.4     GOVERNING LAW

         This Agreement shall be governed by and construed and interpreted in
         accordance with German law, with the exclusion of any conflict of law
         provisions thereof, as to all matters, including matters of validity,
         construction, effect, enforceability, performance and remedies.

13.5     JUDGMENT CURRENCY

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

13.6     ENTIRE AGREEMENT

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

13.7     CONFLICTS

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

13.8     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.

13.9     SURVIVAL

         The obligations of the Parties under Sections 6, 11, 12, 13.4 and 13.9
         and liability for the breach of any obligation contained herein shall
         survive the expiration or earlier termination of this Agreement.

13.10    EXECUTION IN COUNTERPARTS

                                     - 18 -
<PAGE>

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

13.11    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.

13.12    WAIVERS

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

13.13    NO PARTNERSHIP

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

13.14    TAXES, ROYALTIES AND DUTIES

         Subject to Section 6.5, (i) all royalties, taxes and duties imposed or
         levied on any Foil delivered hereunder shall be for the account of and
         paid by the Supplier to the point of legal delivery, which shall be as
         stated in Incoterms 2000 in respect of goods sold DDU, and (ii) all
         royalties, taxes and duties imposed or levied on the Foil after such
         delivery shall be for the account of and paid by the Purchaser.

13.15    LIMITATIONS OF LIABILITY

         Except as otherwise provided herein, neither Party shall be liable to
         the other Party for any indirect, collateral, incidental, special,
         consequential or punitive damages arising in any way out of this
         Agreement; provided, however, that the foregoing limitations shall not
         limit any Party's indemnification obligations for Liabilities with
         respect to Third Party Claims as set forth in Article IX of the
         Separation Agreement (as if such Article was set out in full herein by
         reference to the obligations of the Parties hereunder).

13.16    VIENNA CONVENTION

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

13.17    ENGLISH LANGUAGE

         All documents to be furnished or communications to be made or given
         under this Agreement in connection with any Dispute shall be in the
         English language or, if in another language, shall be accompanied by a
         translation into English certified by the

                                     - 19 -
<PAGE>

         Party making or furnishing such documents or communications, which
         translation shall be the governing version between the Parties hereto.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]

                                     - 20 -
<PAGE>

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

                                      NOVELIS DEUTSCHLAND GMBH

                                      By:
                                            -----------------------------------
                                      Name:
                                      Title:

                                      By:
                                            -----------------------------------
                                      Name:
                                      Title:

                                      ALCAN PACKAGING RORSCHACH AG

                                      By:
                                            -----------------------------------
                                      Name:
                                      Title:

                                      By:
                                            -----------------------------------
                                      Name:
                                      Title:

                                     - 21 -<PAGE>
                                                                   Exhibit 10.16

                           EMPLOYEE MATTERS AGREEMENT

                                     between

                                   ALCAN INC.

                                       and

                                  NOVELIS INC.

           Dated December o, 2004 with effect as of the Effective Time

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                                                              <C>
Employee matters AGREEMENT........................................................................................1

1.       DEFINITIONS AND INTERPRETATION...........................................................................1
         1.1    Definitions.......................................................................................1
         1.2    Appendices........................................................................................4

2.       CONFIDENTIALITY..........................................................................................5

3.       LIMITATION OF LIABILITY AND INDEMNIFICATION..............................................................5

4.       DISPUTE RESOLUTION.......................................................................................6

5.       REPRESENTATIONS, WARRANTIES AND OTHER COVENANTS..........................................................6

6.       ASSIGNMENT...............................................................................................6

7.       TRANSFERRED EMPLOYEES....................................................................................6
         7.1    Continuity of Employment..........................................................................6
         7.2    Continuous Service with Alcan.....................................................................7
         7.3    Collective Agreements.............................................................................7
         7.4    Former Employees..................................................................................8
         7.5    Novelis responsibility for HR Liabilities.........................................................8
         7.6    Alcan responsibility for HR Liabilities...........................................................8
         7.7    Severance.........................................................................................8
         7.8    Change of Control Agreements......................................................................8

8.       EXPATRIATES..............................................................................................8

9.       PENSION AND BENEFITS MATTERS.............................................................................9
         9.1    General Rule......................................................................................9
         9.2    Plans Continued or Assumed by Novelis.............................................................9
         9.3    Public Plans......................................................................................9
         9.4    Non-Assumed Alcan P.B. Plans......................................................................9
         9.5    Non-Assumed Alcan Pension Plans...................................................................9
         9.6    Non-Assumed Alcan Group Benefit Plans............................................................10

10.      EMPLOYMENT-RELATED MATTERS..............................................................................10
         10.1   Transferred Employees' Records...................................................................10
         10.2   Vacation.........................................................................................11
         10.3   Workers' Compensation............................................................................11
         10.4   Cooperation......................................................................................11

11.      ALCAN EQUITY COMPENSATION PLANS.........................................................................11
         11.1   General Principles...............................................................................11
         11.2   Former Employees.................................................................................12

12.      TRANSITIONAL SERVICES...................................................................................12
</TABLE>

<PAGE>

                                      -ii-

<TABLE>
<CAPTION>
<S>                                                                                                              <C>
13.      MISCELLANEOUS...........................................................................................12
         13.1   Construction.....................................................................................12
         13.2   Payment Terms....................................................................................12
         13.3   Notices..........................................................................................13
         13.4   Governing Law....................................................................................13
         13.5   Entire Agreement.................................................................................13
         13.6   Conflicts........................................................................................13
         13.7   Survival.........................................................................................13
         13.8   Indemnification..................................................................................13

APPENDIX "1" - CANADA............................................................................................15

APPENDIX "1A"  LIST OF CANADIAN EMPLOYEES........................................................................22

APPENDIX "2" - FRANCE............................................................................................23

APPENDIX "2A"  LIST OF FRENCH EMPLOYEES..........................................................................28

APPENDIX "3" - KOREA.............................................................................................29

APPENDIX "3A"  LIST OF KOREAN EMPLOYEES..........................................................................31

APPENDIX "4" - MALAYSIA..........................................................................................32

APPENDIX "4A"  LIST OF MALAYSIAN EMPLOYEES.......................................................................34

APPENDIX "5" -  BRAZIL...........................................................................................35

APPENDIX "5A"  LIST OF BRAZILIAN EMPLOYEES.......................................................................39

APPENDIX "5B"  LIST OF CLAIMS AND GRIEVANCES FILED BY BRAZILIAN EMPLOYEES........................................40

APPENDIX "6" - UNITED KINGDOM....................................................................................41

APPENDIX "6A"  LIST OF UK EMPLOYEES..............................................................................44

APPENDIX "6B" PENSIONS SCHEDULES (UK) - BRITISH ALCAN RETIREMENT INCOME AND LIFE ASSURANCE PLAN ("BARILA").......45

APPENDIX "6c"  PENSIONS SCHEDULES (UK) - ALUSSUISSE HOLDINGS UK LIMITED PENSION PLAN ("AH PLAN").................70

APPENDIX "7" - GERMANY...........................................................................................86

APPENDIX "7A"  LIST OF GERMAN EMPLOYEES..........................................................................90

APPENDIX "8" - UNITED STATES.....................................................................................91

APPENDIX "8A"  LIST OF US EMPLOYEES..............................................................................98

APPENDIX "9" - ITALY.............................................................................................99

APPENDIX "9A"  LIST OF ITALIAN EMPLOYEES........................................................................105

APPENDIX "10" - LUXEMBURG.......................................................................................106

APPENDIX "10A"  LIST OF LUXEMBURG EMPLOYEES.....................................................................108
</TABLE>

<PAGE>

                                      -iii-

<TABLE>
<CAPTION>
<S>                                                                                                              <C>
APPENDIX "11" - SWITZERLAND.....................................................................................109

APPENDIX "11A"  LIST OF SWISS EMPLOYEES.........................................................................113

APPENDIX "12" - BELGIUM.........................................................................................114

APPENDIX "12A"  LIST OF BELGIAN EMPLOYEES.......................................................................116

APPENDIX "13" - NETHERLANDS.....................................................................................117

APPENDIX "13A"  LIST OF DUTCH EMPLOYEES.........................................................................119

APPENDIX "14"  CHANGE OF CONTROL AGREEMENTS.....................................................................120

APPENDIX "15"  CONVERSION OF RIGHTS IN ALCAN EQUITY COMPENSATION PLANS..........................................121

APPENDIX "16"  LIST OF EXPATRIATES..............................................................................122
</TABLE>

<PAGE>

                           EMPLOYEE MATTERS AGREEMENT

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

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").

RECITALS:

WHEREAS Alcan and Novelis have entered into a Separation Agreement pursuant to
which the Parties (as defined below) have set out the terms on which, and the
conditions subject to which, they wish to implement the Separation (as defined
below) (such agreement, as amended, restated or modified from time to time, the
"SEPARATION AGREEMENT").

WHEREAS in connection therewith, Alcan and Novelis have agreed to enter into
this Agreement to allocate between them assets, liabilities and responsibilities
with respect to certain employee compensation, pension and benefit plans,
programs and arrangements and certain employment matters and, more specifically,
to set out the terms and conditions pertaining to the transfer of the
Transferred Employees (as defined below) to Novelis or any other member of
Novelis Group (as defined below).

WHEREAS in connection therewith, it is necessary to indicate in individual
Appendices (as defined below), by applicable country, certain of the terms and
conditions of this Agreement which are applicable to the Employees (as defined
below) and Former Employees (as defined below) affected by the transaction
described in 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:

1.       DEFINITIONS AND INTERPRETATION

1.1      DEFINITIONS

Unless otherwise defined in this Agreement, capitalized words and expressions
and variations thereof used in this Agreement or in its Appendices have, unless
a clearly inconsistent meaning is required under the context, the meanings set
forth in the Separation Agreement and the following words and expressions and
variations thereof used in this Agreement or in its Appendices, unless a clearly
inconsistent meaning is required under the context, have the following meanings:

"ALCAN EMPLOYMENT POLICIES" means all material benefits, compensation and
employment policies as well as all material practices relating thereto of Alcan
Group, applicable to the

<PAGE>
                                     - 2 -

Employees and Former Employees in each applicable country immediately prior to
the Effective Time, including but not limited to those listed in the Appendices,
as well as the following policies, which apply internationally:

        o        Individual Performance and Career Management System (IPCM)
        o        Job evaluation process with the Hay system
        o        Jobs online
        o        People development
        o        Executive Performance Award (EPA)
        o        Environment, Health and Safety First (EHS First)
        o        Code of Conduct
        o        Policy on International Assignments.

Without limiting the generality of the foregoing, the Alcan Employment Policies
include all policies and practices relating to vacation, statutory holidays,
leaves of absence, scholarship or tuition reimbursement, dependant care
assistance, immigration assistance, employee loans or loan guarantees,
severance, compensation or bonus or change of control.

"ALCAN EQUITY COMPENSATION PLANS" means all equity compensation plans of Alcan
Group applicable to the Employees and Former Employees in each applicable
country, as listed in Section 11.

"ALCAN GROUP" means Alcan and its Subsidiaries from time to time after the
Effective Time.

"ALCAN P. B. PLANS" means all pension and benefit plans as well as all material
practices relating thereto of Alcan Group, applicable to the Employees and
Former Employees in each applicable country, including but not limited to those
listed in the Appendices. Without limiting the generality of the foregoing, the
Alcan P.B. Plans include all retirement, pension, supplemental pension, savings,
retirement savings, retiring allowance, profit sharing, deferred compensation,
life insurance, medical, hospital, dental care, vision care, drug, sick leave,
short term or long term disability, salary continuation, unemployment benefits,
tuition fees, employee bonus award, recognition plans or programs and other
employee benefit plan, program, arrangement, policy or practice whether written
or oral, formal or informal, funded or unfunded, registered or unregistered,
insured or self-insured that is maintained or otherwise contributed to, or
required to be contributed to, by or on behalf of Alcan Group for the benefit of
the Employees and Former Employees, including any public or government sponsored
plan.

"AESOP" has the meaning set forth in Section 11.1.

"APPLICABLE WORKERS' COMPENSATION LAW" means the statutory and administrative
regime set up within each applicable country for the insurance and management of
workplace injuries and illnesses.

"APPENDIX (CES)" means an appendix or the appendices listed in Section 1.2.

"APPO" has the meaning set forth in Section 7.1 of this Agreement.

<PAGE>
                                     - 3 -

"COLLECTIVE AGREEMENTS" means all written agreements entered into between Alcan
or any other member of Alcan Group and unions on behalf of Employees with
respect to the terms and conditions of employment of Employees, in each
applicable country, including but not limited to, those listed in the
Appendices.

"CONVERTED OPTIONS" has the meaning set forth in Appendix 15.

"DSUP" has the meaning set forth in Section 11.1.

"EFFECTIVE DATE" means the date shown on the Certificate of Arrangement issued
by the Director under the Canada Business Corporations Act giving effect to the
Separation.

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

"EPA" has the meaning set forth in Section 11.1.

"EMPLOYEES" means all employees, including Leave Employees, of the Separated
Businesses and the Separated Entities, including but not limited to, those
listed in the Appendices.

"EXPATRIATES" means those Employees who are, as at the Effective Time, assigned
to a country other than their country of origin, including but not limited to,
those listed in Appendix "16".

"FORMER EMPLOYEES" means all former employees of any Separated Business or
Separated Entity, as at the Effective Time, including retirees, who were
employed by a Separated Business or a Separated Entity when they ceased to be
employed by the Alcan Group, for whatever reason.

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

"HR LIABILITIES" means all obligations and liabilities for wages, bonuses
(including, for greater certainty, all EPA) variable compensation, workers'
compensation benefits, pension and other benefits or any other employee claim,
including vacation pay, in respect of any Transferred Employee or Former
Employee.

"LEAVE EMPLOYEE" means any Employee who is on short-term disability leave,
long-term disability leave, pregnancy or parental leave, absent and in receipt
of workers' compensation benefits or on any other form of approved leave, as of
the Effective Time.

"NON-ASSUMED ALCAN P.B. PLANS" means the Alcan P.B. Plans that are not sponsored
by a Separated Business or a Separated Entity and that do not cover exclusively
Employees or Former Employees.

"NON-ASSUMED ALCAN GROUP BENEFIT PLANS" means the Non-Assumed Alcan P.B. Plans
providing life, dismemberment, health, disability or similar benefits.

"NON-ASSUMED ALCAN PENSION PLANS" means the Non-Assumed Alcan P.B. Plans that
are pension plans.

<PAGE>
                                     - 4 -

"NOVELIS GROUP" means Novelis and its Subsidiaries from time to time after the
Effective Time.

"NOVELIS GROUP BENEFITS PLANS" means the Novelis P.B. Plans providing life,
dismemberment, health, disability or similar benefits.

"NOVELIS P.B. PLANS" has the meaning set forth in Section 9.4.

"NOVELIS PENSION PLANS" means the Novelis P.B. Plans that are pension plans.

"PARTY" means each of Alcan and Novelis as a party to this Agreement and
"PARTIES" means both of them.

"PARTICIPATION PERIOD" has the meaning set forth in Section 9.4.

"RSU" has the meaning set forth in Section 11.1.

"SEPARATION" means the transfer by Alcan to Novelis, pursuant to a Plan of
Arrangement under the Canada Business Corporations Act of substantially all of
the aluminium rolled products businesses operated by Alcan prior to December
2003 together with certain other assets, the whole as further described in the
Separation Agreement.

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

"SPAU" has the meaning set forth in Section 11.1.

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

"TRANSFERRED EMPLOYEES" means those Employees whose employment is continued with
Novelis or any relevant other member of Novelis Group, pursuant to Section 7.1
of this Agreement.

"TRANSITIONAL SERVICES" means the employment related services to be provided by
either Party under the Transitional Services Agreement and which are further
described in the Transitional Services Agreement.

"TSRP" has the meaning set forth in Section 11.1.

1.2      APPENDICES

The following are the Appendices attached to this Agreement and which form part
hereof:

              Appendix 1    - Canada
              Appendix 1A   - List of Canadian Employees
              Appendix 2    - France

<PAGE>
                                     - 5 -

              Appendix 2A   - List of French Employees
              Appendix 3    - Korea
              Appendix 3A   - List of Korean Employees
              Appendix 4    - Malaysia
              Appendix 4A   - List of Malaysian Employees
              Appendix 5    - Brazil
              Appendix 5A   - List of Brazilian Employees
              Appendix 5B   - List of Claims and Grievances Filed by Brazilian
                              Employees and Former Employees
              Appendix 6    - United Kingdom
              Appendix 6A   - List of United Kingdom Employees
              Appendix 7    - Germany
              Appendix 7A   - List of German Employees, excluding Alu-Norf
                              Employees
              Appendix 8    - United States
              Appendix 8A   - List of US Employees
              Appendix 9    - Italy
              Appendix 9A   - List of Italian Employees
              Appendix 10   - Luxembourg
              Appendix 10A  - List of Luxembourg Employees
              Appendix 11   - Switzerland
              Appendix 11A  - List of Switzerland Employees
              Appendix 12   - Belgium
              Appendix 12A  - List of Belgian Employees
              Appendix 13   - Netherlands
              Appendix 13A  - List of Dutch Employees
              Appendix 14   - Change of Control Agreements
              Appendix 15   - Conversion of rights in Alcan Equity
                              Compensation Plans
              Appendix 16   - List of Expatriates.

2.       CONFIDENTIALITY

The terms of the confidentiality provisions set forth in Sections 11.07 and
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 including Confidential Information disclosed in the course of and
pursuant to the Transitional Services Agreement, and such Confidentiality
provisions shall continue to apply notwithstanding the expiry or early
termination of the Separation Agreement and Transitional Services Agreement.

3.       LIMITATION OF LIABILITY AND INDEMNIFICATION

The terms of the Separation Agreement relating to mutual releases and
indemnification set forth in Article IX of the Separation Agreement shall apply
to this Agreement, as if such Article was set out in full herein by reference to
the obligations of the Parties hereunder, subject to the provisions set forth in
Section 7.1 of this Agreement.

<PAGE>
                                     - 6 -

4.       DISPUTE RESOLUTION

The Master Agreement with respect to Dispute Resolution 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.

5.       REPRESENTATIONS, WARRANTIES AND OTHER COVENANTS

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

In addition and without limiting the generality of the foregoing, Novelis shall,
and shall cause, where applicable, any relevant other member of Novelis Group
to, comply with all covenants and undertakings set out in this Agreement,
including all Appendices, that are made by Novelis, whether on its own behalf or
on behalf of Novelis Group or any relevant other member of Novelis Group, such
as those mentioned in Sections 7, 8, 9, 10 and 11 of this Agreement (which
enumeration is not intended to be exhaustive), subject to Applicable Law.

6.       ASSIGNMENT

Neither Party shall assign or transfer this Agreement, in whole or in part, or
any interest or obligation arising under this Agreement without the prior
written consent of the other Party.

7.       TRANSFERRED EMPLOYEES

7.1      CONTINUITY OF EMPLOYMENT

Novelis and each relevant other member of Novelis Group shall continue the
employment of the Employees whose employment is automatically transferred to it
pursuant to Applicable Law, on substantially comparable terms and conditions, in
the aggregate, (including the Alcan P.B. Plans and the Alcan Employment
Policies) as those applicable at the Effective Time to the Employees, and shall
maintain such terms and conditions for a period up to and including the first
anniversary of the Effective Time or for such longer period as is required
pursuant to Applicable Law.

With respect to Employees whose employment is not automatically transferred
pursuant to Applicable Law, or if required pursuant to Applicable Law, Novelis
and each relevant other member of Novelis Group will offer such Employees
continuation of employment on substantially comparable terms and conditions, in
the aggregate, (including the Alcan P.B. Plans and the Alcan Employment
Policies) as those applicable at the Effective Time to such

<PAGE>
                                     - 7 -

Employees, by means of a letter from Novelis Group in such form as may be
required by Applicable Law or in such other legally permissible and effective
form as may be appropriate.

Notwithstanding the foregoing, Novelis and each relevant other member of Novelis
Group shall have the right to modify such terms and conditions of employment
before the expiry of said one year period, only if such changes are part of a
Collective Agreement.

Without limiting the generality of the foregoing, Novelis and each relevant
other member of Novelis Group shall offer its executives benefits of comparable
value to those which applied to them at the Effective Time. Furthermore, those
amongst the Transferred Employees who currently participate in the Alcan Pension
Plan for Officers (the "APPO") shall see their respective service and earnings
as officers of Alcan (or any other member of Alcan Group) recognized by Novelis
and each relevant other member of Novelis Group, for purposes of the Novelis
pension plan applicable to such Transferred Employees.

For greater certainty, in addition to Novelis's indemnification obligations set
out in Section 9.02 of the Separation Agreement, Novelis shall indemnify and
hold harmless, and shall cause the other members of Novelis Group, to solidarily
indemnify and hold harmless Alcan and each other member of Alcan Group from and
against any Liability relating to, arising out of or resulting from any claim,
of any nature whatsoever, made by any Employee who refuses to be employed or to
continue to be employed by Novelis or any relevant other member of Novelis Group
or who alleges, once he has begun employment with Novelis or any relevant other
member of Novelis Group, that Novelis or any relevant other member of Novelis
Group did not maintain such terms and conditions of employment for a period of
one year as stipulated in the first paragraph of this Section 7.1.

7.2      CONTINUOUS SERVICE WITH ALCAN

Novelis and each relevant other member of Novelis Group shall recognize the
respective service with Alcan (or any other member of Alcan Group) of all
Transferred Employees, for all purposes except where it would result in
duplicate benefits for the same period of service. With respect to Novelis
Pension Plans, and except as otherwise dealt with in an Appendix, such service
will not be counted for calculation of benefits, unless Novelis or any other
relevant member of Novelis Group decides otherwise. Where applicable, Alcan
shall recognize service with Novelis and any relevant other member of Novelis
Group of all Transferred Employees for vesting and for eligibility requirements
for all Alcan P.B. Plans.

7.3      COLLECTIVE AGREEMENTS

Novelis or the relevant other member of Novelis Group shall be the successor
employer of Alcan or any other member of Alcan Group under the Collective
Agreements pursuant to the respective terms of such Collective Agreements and/or
Applicable Law and, from and after the Effective Time, Novelis or any relevant
other member of Novelis Group shall be bound by, and observe, and shall cause
the other members of Novelis Group to observe, all the terms, conditions, rights
and obligations under such Collective Agreements. Without limiting the
generality of the foregoing, Novelis or the relevant other members of Novelis
Group shall be the successor

<PAGE>
                                     - 8 -

employers with respect to any pending grievances, complaints or other litigation
relating to Employees covered by such Collective Agreements.

7.4      FORMER EMPLOYEES

Except as otherwise specifically dealt with in this Agreement or an Appendix,
Novelis or the relevant other members of Novelis Group shall assume all
Liabilities, including HR Liabilities, relating to the Former Employees.

7.5      NOVELIS RESPONSIBILITY FOR HR LIABILITIES

As of the Effective Time, and except as otherwise specifically dealt with in
this Agreement or an Appendix, Novelis shall be responsible for, and shall
discharge, and shall cause the relevant other members of Novelis Group to
discharge, all HR Liabilities, whether accrued prior to, on or after the
Effective Time.

7.6      ALCAN RESPONSIBILITY FOR HR LIABILITIES

As of the Effective Time, and except as otherwise specifically dealt with in
this Agreement or an Appendix, no member of Alcan Group shall be responsible for
any HR Liabilities, whether accrued prior to, on or after the Effective Time.

7.7      SEVERANCE

Novelis shall pay, and shall cause the relevant other members of Novelis Group
to pay, severance to the Transferred Employees whose employment is terminated by
Novelis or any relevant other member of Novelis Group, on or before the first
anniversary of the Effective Time, on terms no less favourable than the
severance, if any, that would have been applicable to such Transferred Employees
pursuant to the severance policies of Alcan Group or Applicable Law in effect at
the Effective Time, assuming such Transferred Employees had remained employees
of Alcan or any other member of Alcan Group, until such termination.

7.8      CHANGE OF CONTROL AGREEMENTS

As of the Effective Time, Novelis and each relevant other member of Novelis
Group, shall assume, perform, discharge and fulfill all the obligations of Alcan
set forth in the Change of Control Agreements listed in Appendix "14" attached
to this Agreement.

8.       EXPATRIATES

Each Expatriate shall receive from Novelis or the relevant other members of
Novelis Group, a letter confirming the terms and conditions of employment
applicable to such person. Without limiting the generality of the foregoing,
such letter will provide details as to the pension plans and benefits which will
apply to such Expatriate.

<PAGE>
                                     - 9 -

9.       PENSION AND BENEFITS MATTERS

9.1      GENERAL RULE

Except as otherwise dealt with in this Agreement, an Appendix or the
Transitional Services Agreement and subject to mandatory provisions of
Applicable Law, all matters relating to pension and benefits of the Transferred
Employees and Former Employees shall be governed by this Section 9. Novelis or
the relevant other members of the Novelis Group shall assume all Liabilities
relating to the benefits of the Transferred Employees and the Former Employees
under the Alcan P.B. Plans as of the Effective Time.

9.2      PLANS CONTINUED OR ASSUMED BY NOVELIS

All Alcan P.B. Plans sponsored by a Separated Entity or a Separated Business or
covering exclusively Employees or Former Employees shall be continued by or, as
applicable, assigned to and assumed by Novelis or the relevant other members of
the Novelis Group as of the Effective Time.

9.3      PUBLIC PLANS

Novelis or the relevant other members of Novelis Group shall be the successor
employers in respect of the Employees and Former Employees in respect of any
Alcan P.B. Plan that is a public or government sponsored plan as of the
Effective Time.

9.4      NON-ASSUMED ALCAN P.B. PLANS

As of the later of the Effective Time or the day following the end of a period
during which Transferred Employees and Former Employees have continued to be
covered by a Non-Assumed Alcan P.B. Plan after the Effective Time pursuant to an
Appendix or the Transitional Services Agreement (the "PARTICIPATION PERIOD"),
Transferred Employees and Former Employees shall cease to actively participate
in, accrue benefits under or be covered by, the Non-Assumed Alcan P.B. Plans and
shall be treated as terminated employees or terminated members under those
plans.

As of the later of the Effective Time or the day following the end of a
Participation Period, Novelis or the relevant other members of Novelis Group
shall establish pension and benefit plans that will provide the Transferred
Employees and Former Employees with pension and benefits and on terms and
conditions that are in the aggregate substantially similar to those of the
relevant Non-Assumed Alcan P.B. Plan in effect on the later of the Effective
Time or the end of the Participation Period in question (the "NOVELIS P.B.
PLANS"). However Novelis Group shall not be required to maintain substantially
similar benefits beyond the first anniversary of the Effective Time.

9.5      NON-ASSUMED ALCAN PENSION PLANS

Alcan and the relevant Non-Assumed Alcan Pension Plan shall remain responsible
for the benefits accrued by the Transferred Employees and the Former Employees
under each of the

<PAGE>
                                     - 10 -

Non-Assumed Alcan Pension Plans up to the Effective Time or such later time
pursuant to an Appendix or the Transitional Services Agreement, unless and until
such benefits are transferred to a Novelis Pension Plan pursuant to terms set
out in an Appendix.

9.6      NON-ASSUMED ALCAN GROUP BENEFIT PLANS

Novelis and the relevant other members of Novelis Group shall ensure that
evidence of insurability or pre-existing conditions and eligibility periods in
respect of the Novelis Group Benefit Plans are waived in respect of the
Transferred Employees and Former Employees and shall honour any deductibles,
co-payments, co-insurance or out-of-pocket expenses paid or incurred by such
Transferred Employees and Former Employees, including with respect to their
covered dependants, under the Non-Assumed Alcan Group Benefit Plans from the
beginning of the current coverage period to the Effective Time, as though such
amounts had been paid in accordance with the terms and conditions of the Novelis
Group Benefit Plans.

Alcan shall retain responsibility under and subject to the terms of the
Non-Assumed Alcan Group Benefit Plans, for death, dismemberment, medical and
dental claims incurred prior to the Effective Time, and Novelis and the relevant
other members of Novelis Group shall be responsible for death, dismemberment,
medical and dental claims incurred after the Effective Time. For greater
certainty, for the purposes hereof, a claim in connection with the foregoing
shall be deemed to be incurred on the date hereinafter specified:

-     with respect to death or dismemberment claim:      the date on which the
                                                         event occurred; and

-     with respect to a medical or a dental claim:       the date on which the
                                                         services were provided
                                                         or the supplies were
                                                         purchased.

With respect to disability, salary continuance or other wage replacement
benefit, Novelis and the relevant other members of Novelis Group shall be
responsible for all payments to disabled Transferred Employees from and after
the Effective Time except for those payments that remain covered by the insured
portion of the Non-Assumed Alcan Group Benefit Plans or by a Non-Assumed Alcan
Pension Plan.

10.      EMPLOYMENT-RELATED MATTERS

10.1     TRANSFERRED EMPLOYEES' RECORDS

Subject to Applicable Law, Alcan shall deliver to Novelis or the relevant other
members of Novelis Group, on or after the Effective Time, all documentation it
has on file relating to each Transferred Employee and Former Employee,
including, as applicable, any curriculum vitae, offer of employment and history
of employment (positions held and salary progression), disciplinary measures and
performance evaluations carried out by Alcan Group and received by such
Transferred Employee. Alcan shall retain a copy of all such documentation
relating to such Transferred Employees it is legally required to retain pursuant
to Applicable Law.

<PAGE>
                                     - 11 -

10.2     VACATION

Appendices "1" to "13" attached to this Agreement set forth, on a
country-by-country basis, Alcan's estimate of the total amount of pay for all
accrued and unused vacation days due and owing to the Transferred Employees of
the relevant country up to the Effective Time. Novelis shall grant, and shall
cause each relevant other member of Novelis Group to grant, each Transferred
Employee paid time off in an amount equal to the accrued and unused vacation
days for each such Transferred Employee as set forth in the relevant Appendix
and which was used by Alcan in connection with the foregoing calculations. Alcan
shall, within sixty (60) days after the Effective Time or as soon as practicable
thereafter, provide Novelis and each relevant other member of Novelis Group,
upon request, with updated Appendices "1" to "13" prepared as at the Effective
Time, confirming the accrued and unused vacation days.

10.3     WORKERS' COMPENSATION

Novelis and each relevant other member of Novelis Group shall reimburse Alcan
and each relevant other member of Alcan Group for any and all assessments,
reassessments, charges, surcharges, fines, levies or penalties imposed upon
Alcan or any other member of Alcan Group after the Effective Time, under any
Applicable Workers' Compensation Law, to the extent that such assessments,
reassessments, charges, surcharges, fines, levies or penalties relate to any
Transferred Employee or any Former Employee.

10.4     COOPERATION

After the date hereof, Alcan and Novelis shall co-operate, and shall cause the
other members of their respective Group to co-operate, promptly and in good
faith in implementing this Agreement.

Alcan and Novelis acknowledge that the employee matters relating to the
transaction are complex and that there are situations that may not be dealt with
specifically in this Agreement and agree that, should they occur, such
situations shall be dealt with to the fullest extent possible in accordance with
the general principles laid out in this Agreement and the Separation Agreement.

11.      ALCAN EQUITY COMPENSATION PLANS

11.1     GENERAL PRINCIPLES

The Alcan Equity Compensation Plans are the following:

        o        Alcan Executive Share Option Plan ("AESOP");

        o        Total Shareholder Return Plan ("TSRP");

        o        Stock Price Appreciation Unit - Suisse ("SPAU");

<PAGE>
                                     - 12 -

        o        Deferred Stock Unit Plan ("DSUP");

        o        Restricted Stock Unit ("RSU"); and

        o        Employee Performance Award ("EPA").

Subject to the terms of the Plan of Arrangement, and save and except for those
who, amongst the Transferred Employees, hold Pechiney options (with underlying
Alcan options), all rights enjoyed by Transferred Employees in the Alcan Equity
Compensation Plans shall be cancelled or forfeited, as applicable, as of the
Effective Time.

As of the Effective Time, such Transferred Employees who were entitled to
participate in the Alcan Equity Compensation Plans shall be entitled to receive
Converted Options and other rights in accordance with the principles further
described in Appendix "15".

The liabilities relating to the EPA earned by the Transferred Employees in year
2004 and to be paid in year 2005 shall be assumed by Novelis.

11.2     FORMER EMPLOYEES

For greater certainty, the general principles mentioned in Section 11.1 do not
apply to Former Employees. Such Former Employees shall be entitled to exercise
their rights in the Alcan Equity Compensation Plans in accordance with the terms
thereof, with the exception of Novelis' Chief Financial Officer, Mr. Geoff Batt,
who will also receive Converted Options in accordance with the principles set
out in Appendix "15".

12.      TRANSITIONAL SERVICES

The Parties shall provide one another those Transitional Services relating to
employment matters that are described in the Transitional Services Agreement.

13.      MISCELLANEOUS

13.1     CONSTRUCTION

The terms of the Separation Agreement relating to construction or interpretation
set forth in Section 16.04 of the Separation Agreement shall apply to this
Agreement.

13.2     PAYMENT TERMS

Except as expressly provided in this Agreement, the terms of the Separation
Agreement relating to payment terms set forth in Section 16.08 of the Separation
Agreement shall apply to this Agreement.

<PAGE>
                                     - 13 -

13.3     NOTICES

All notices and other communications hereunder shall be given in conformity with
Section 16.10 of the Separation Agreement.

13.4     GOVERNING LAW

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

13.5     ENTIRE AGREEMENT

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

13.6     CONFLICTS

In case of any conflict or inconsistency between this Agreement and the
Separation Agreement, this Agreement shall prevail. In case of any conflict or
inconsistency between the terms and conditions of this Agreement and the terms
of any Transition Service Schedule to the Transitional Services Agreement, the
provisions of this Agreement shall prevail. In case of any conflict or
inconsistency between the terms and conditions of this Agreement, and the term
of any Appendix thereto, the provisions of the Appendix shall prevail.

13.7     SURVIVAL

Except as expressly set forth in the Separation Agreement, the covenants,
representations and warranties contained in this Agreement, including those
contained in Section 2 (Confidentiality) hereof, and liability for the breach of
any obligation contained herein shall survive the expiration of this Agreement.

13.8     INDEMNIFICATION

Notwithstanding anything to the contrary in this Agreement, Novelis shall
indemnify and hold Alcan and the relevant other members of Alcan Group harmless
from and against all Liabilities in respect of claims resulting from the failure
of any other member of Novelis Group to fulfill its obligations pursuant to this
Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]

<PAGE>
                                     - 14 -

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

                                      ALCAN INC.

                                      By:   _______________________________
                                            Name:
                                            Title:

                                      By:   _______________________________
                                            Name:
                                            Title:

                                      NOVELIS INC.
                                      By:   _______________________________
                                            Name:
                                            Title:

                                      By:   _______________________________
                                            Name:
                                            Title:

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