Document:

EX-10.6 AGREEMENT REGARDING TERMINATION/EMPLOYMENT

 

Exhibit 10.6

Mr. David Godsell

4724 Dudley Lane

Atlanta, GA 30327

Dear David:

Re: Termination of Employment

The purpose of this letter is to provide an overview of the terms of your termination of employment
from Novelis and to link together various company specific documents relating to your separation of
employment. These documents are included as numbered attachments. For the purposes of flow the
sequencing of the events and attachments will generally follow historical chronology.

Summary of Transition — David Godsell — Attachment I (February 23, 2007). 

On February 23, 2007 during a meeting with Ed Blechschmidt, then Acting CEO of Novelis Inc. and
Clarence Chandran, Director and Chairman of the Human Resources Committee of the Board of Directors
for Novelis Inc., the content of Attachment I was communicated.

From the period February 23, 2007 through the close of the Hindalco transaction on May 15, 2007 you
remained on active payroll at your annualized rate of $310,000 as communicated in Attachment I.
During this period you utilized all your available outstanding vacation entitlement. You remained
on payroll for the period May 16, 2007 through June 30, 2007, as Novelis worked through the details
of calculating your Change In Control benefits including potential tax gross-ups under Section 3 of
your Change In Control Agreement

 Specifics identified within the Summary of Transition — Attachment I 

	 	a)	 	 Novelis Founders Performance Shares:  The Performance Share Units were cancelled in
exchange for a cash payment following the completion of the acquisition of Novelis Inc. by AV
Metals Inc., a subsidiary of Hindalco Industries Limited [“the Transaction”].
	 
	 	b)	 	 Conversion Options:  All of your Novelis Conversion options were transferred to Novelis
for a cash payment following the completion of the Transaction.

 

 

	 	c)	 	Long Term Incentive (2006): All your stock options granted on October 26, 2006 under the Novelis Inc. 2006
Incentive Plan were transferred to Novelis for a cash payment following the completion of the
Transaction.
	 
	 	d)	 	Short Term Incentive Award (STI)(2006): Your STI award for the 2006 fiscal year of $
85,000 was paid in April 2007.
	 
	 	e)	 	Short Term Incentive Award (STI)(2007): Your STI award for the 2007 period of January
1, 2007 to May 15, 2007 was paid at your target bonus level following the completion of the
Transaction.
	 
	 	f)	 	Change In Control: You were afforded treatment under your Novelis Change In Control
Agreement of September 24, 2006 — Attachment II —subject to employment termination within 6 months
prior or 2 years after a Change In Control. With the May 15, 2007 completion of the Transaction you
were deemed to be eligible for Change In Control payout.
	 
	 	g)	 	Automobile: The opportunity to purchase the company vehicle was cited.

Agreement Concerning Retirement and Separation and Release Agreement

On July 30, 2007 — you received a letter from Novelis that consisted of an Agreement Concerning
Retirement (Attachment III) and a Separation and Release Agreement (Attachment IV)

The Agreement Concerning Retirement outlines some of the major details associated with your
retirement from Novelis effective July 1, 2007. Specifically it confirms your entitlements to
certain payments and other benefits covered under your Change In Control Agreement as also
referenced in Attachment I of this letter.

Provided you execute a Separation and Release agreement as required under Section 2(a) of your
Change In Control Agreement dated September 24, 2006, you will be entitled to the following
payments and other benefits under your Change in Control Agreement.

	 	(a)	 	A lump sum payment in an amount equal to 24 months of total cash compensation (i.e. base salary
plus short-term incentive opportunity). This amount will be $961,000. As required under Section 2
of your Change In Control Agreement, this payment will be delayed for a period of six (6) months as
required by internal Revenue Code Section 409A.
	 
	 	(b)	 	You are entitled to continue life insurance coverage under the Company’s group life insurance
plan for a period of twenty-four (24) months at your pre-termination level of coverage. Details
of the per month cost for your optional life insurance, spouse life Insurance, child life insurance
are attached. The intent would be to take all of these costs from your Change In Control payment
unless you elect to drop one or more of these coverage types. The attachment also shows the
amount of imputed income to keep your regular coverage in effect for 24 months.
	 
	 	(c)	 	You are entitled to twenty-four (24) months of additional credit for benefit accrual and
contribution allocation purposes (including credit for age,

 

 

	 	 	 	service and earnings pro rated over
twenty-four (24) months under the Company’s tax qualified and non-qualified pension and savings
plan. Your Pension Information has been forwarded to you under separate cover. Your non-qualified
savings plan account will be credited with two years additional match [a total of $20,250] as soon
as practicable after you execute a Separation and Release Agreement.
	 
	 	(d)	 	Gross-up Payment if warranted under Section 3. Tax Reimbursement of your Change In
Control Agreement.

You are
entitled to the following benefits even if you elect not to execute a Separation and
Release agreement

	•	 	Retirement benefits but without the enhancements included with your Change In Control
Agreement.
	 
	•	 	Retiree medical coverage which begins on July 1, 2007 at active employee rates.
	 
	•	 	You have the option of purchasing your company car from Novelis at book value or returning it
to Novelis.

The Agreement Concerning Retirement also specifies the forfeiture of your Recognition Shares and
the cessation of company Short and Long-Term Disability effective as of your retirement date.

Attachment V is the July 13 2007 letter from Beverly Husani outlining your
entitlements under various Company Pension plans (subject to certain elections on your part).
Attachment XII is the October 25, 2007 letter from Beverly Husani updating this information.

The following chart depicts (with appropriate assumptions of elections, start dates, signed CIC
Agreement etc...) the sources and composition of the monthly pension payments in US funds.

	 	 	 	 	 	 	 	 	 
	 	 	July 1, 2007	 	 	January 1, 2008	 
	Alcan Pension Plan (APP)
	 	$	1,378	 	 	$	1,427	 
	 
	Novelis Pension Plan (NPP)
	 	$	2,898	 	 	$	3,009	 
	 
	Supplemental Retirement Plan (SRBP)
	 	 	N/A	 	 	$	7,573	 
	 
	 	 	 	 	 	 
	 
	Total
	 	$	4,277	 	 	$	12,009	 

 

			
	*	 	SRBP — total of $ 7,573 consists of two parts: a) $ 4,081 per month additional pension due to IRS
limit on compensation that can be recognized in qualified plan NPP, b) $ 3,492 per month due to the
Change In Control Agreement.

 

 

It is important for you to know that payments under the SRBP will commence on January 1, 2008, if
you so elect. If you do not make that election, payments will commence at age 55.

You will receive an updated letter from Ms. Husani when we have an indication from you as to when
you would want to begin various payments.

Attachment VI is July 19, 2007 letter from Christine Morgan that outlines COBRA coverage for
Medical and Dental Coverage. Attached to this a HIPAA Certificate of Group Health Coverage. Under
separate cover your were sent information concerning COBRA including a listing of coverage rates
and identification of the “election rights expiry date of 09/29/07”

Health care benefits for you and your family can be summarized as follows:

	 	(a)	 	Medical: Effective on your early retirement date of July 1 2007, because of your eligibility
you began participation under the Novelis Retiree Medical coverage. Until such time that the
retiree medical plan changes, if it changes, you are eligible for retiree medical coverage at
active employee rates.
	 
	 	(b)	 	Dental: Effective June 30 2007 dental coverage for you and your family terminated. You were
eligible to elect COBRA coverage as was communicated to you. There is no company provision for
dental under current company retiree plans.

Other Issues associated with Termination of Employment:

	 	a)	 	Novelis Savings Plan: You should have received a termination kit from Vanguard outlining your
various possible elections.
	 
	 	b)	 	Novelis Canada Savings Plan: On October 9, 2007 Novelis sent an electronic transmission between
payroll (processed in Cleveland) and Fidelity showing your status end date as October 9, 2007. That
notification should trigger Fidelity to send distribution material directly to you (we do not get
any copies).
	 
	 	c)	 	AlcanCorp Non-Qualified Deferred Compensation Plan: Our records indicate that you continue to
be a member in this plan that is administered by Vanguard on behalf
of Alcan. Novelis as you are
aware did not continue this plan after the spin-off from Alcan. You may wish to contact the Alcan
shared services center in Chicago (866-704-2379) regarding ongoing participation and disbursement.
We expect that your annual distributions for five years will commence March 2008.
	 
	 	d)	 	Company Vehicle: You have the option to purchase your company vehicle at book value or return
it to the company. The price communicated to you was $ 67,350.00, plus sales tax of $5,388.00, plus
an administrative fee of $75.00, for a total of $ 72,813.00. If you have not already done so, you
will make that election in writing when you return this signed letter and the Separation and Release Agreement to me.

 

 

	 	e)	 	Short-Term Incentive: (May 15 — 30 June 2007) — Under the terms of
Section 2.(c)(i) of your Change In Control Agreement (Attachment II), you shall be entitled to a
short term incentive award for this period pursuant to the terms of the incentive plan with respect
to which such award is issued (Novelis Annual Incentive Plan 2007 —2008 is attached as Attachment
VII). The amount of this award will be inclusive of the one time payment covered in section (i)
below.
	 
	 	f)	 	Tax preparation services: Novelis will provide tax preparation services for the 2007 and 2008
tax years.
	 
	 	g)	 	Separation and Release Agreement: As articulated within the Change In Control Agreement, the
company has prepared the Separation and Release Agreement that is attached as Attachment X and it
updates Attachment IV, Attachment VIM (red-lined version) and Attachment IX (clean version).
	 
	 	h)	 	Tax Reimbursement — Gross-Up Payment: Attachment XI is the calculation document reflecting
Novelis’s contractual requirements under section 3 (c) of the Change In Control Agreement,
pertaining to the amount of excise tax to be imposed by Section 4999, if any, and gross-up as
determined under Section 280.
	 
	 	i)	 	One Time Payment. The company will provide you with a taxable one time payment of $50,000,
payable by Novelis as soon as is practicable after January 1, 2008 provided you have executed and
have not revoked the Separation and Release Agreement, covering additional consideration for a
release, including but not limited to the 2007 STI referenced in section (e), reimbursement for
certain legal fees, 409A tax consultation services and similar release-related items. This payment
will address all other potential requests for reimbursement associated with Separation and is
reflected as consideration cited in section 4 (f) of the Separation and Release Agreement Attachment X.

There are two originals of this letter summarizing the termination terms, including all attachments
(a “packet”). Please sign both originals of this letter and both originals of the Separation and
Release Agreement (also included as Attachment X) and return one signed packet to me. You may keep
one original packet for your records.

	 	 	 	 	 
	Yours truly,
	 	 	 	 
	 
	 	 	 	 
	/s/ Robert Virtue
	 	 	 	 
	Robert Virtue
	 	 	 	 
	VP Human Resources
	 	 	 	 
	 
	 	 	 	 
	Accepted and Agreed:
	 	 	 	 
	 
	 	 	 	 
	/s/ David Godsell

	 	November 12 2007
	 	 
	 	 	 
	David Godsell

	 	Date:EX-10.7 SEPARATION AND RELEASE AGREEMENT

 

Exhibit 10.7

SEPARATION AND RELEASE AGREEMENT

This Separation and Release Agreement (“Agreement”) is entered into by and between David Godsell
(“Employee”) and Novelis Inc. (“Novelis”) as a result of the termination of the employee’s
employment relationship other than for Cause and as required by Section 2(a) of the Change in
Control Agreement entered into between the Employee and Novelis on September 25, 2006 (the “CIC
Agreement”).

1. Separation Date: The employee’s employment relationship terminated on July 1, 2007
(“Separation Date”).

2. Release: As consideration for the benefits and payments described in the CIC
Agreement, which Novelis agrees to pay in accordance with the CIC Agreement, Employee does hereby
voluntarily waive, release, hold harmless, acquit and forever discharge Novelis, its
predecessors, parents, subsidiaries and affiliated companies, successors and assigns, and the
past, present and future officers, directors, employees, representatives and agents from (i) any
and all claims, charges, complaints, demands, damages, lawsuits, actions or causes of action he
had, has or may have, known or unknown, and of any kind or description whatsoever, which arose
prior to the execution of this Agreement; and (ii) any and all claims or legal action against
Novelis in any way arising out of or in any way related to Employee’s employment with Novelis
(including any claim of which the Employee is not aware and those not mentioned in this paragraph
2); and (iii) any and all claims he had, has or may have under any possible legal, equitable,
tort, contract, common law, public policy or statutory theory, arising under any federal, state
or local law, rule, ordinance or regulation, including but not limited to, the Age Discrimination
in Employment Act of 1967, the Civil Rights Act of 1866, the Civil Rights Act of 1991, Title VII
of the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974, and the
Americans with Disabilities Act of 1990, all as amended to the date of this Agreement. Nothing
contained in this Release shall affect the parties’ rights and obligations under the CIC
Agreement, the Novelis Pension Plan, Supplemental Retirement Plan, the Alcan Pension Plan and the
Termination of Employment letter dated November 1, 2007.

3. Noncompete: Employee agrees that, for twelve (12) months following June 30, 2007, he
will not, without the express written consent of Novelis, directly or indirectly work for, or
provide services to, directly or indirectly (e.g., as an employee, independent contractor or
consultant to a service provider), a direct competitor of Novelis in any role in which Employee
could use Novelis’ confidential or trade secret information. For purposes of this paragraph 3, a
“direct competitor” is any person engaged in the business of producing aluminum rolled products
in the markets served by Novelis. The restriction on competition in this paragraph extends to
all geographic areas serviced by Novelis during Employee’s employment. Further, the restrictions
on competition in this paragraph are intended only insofar as is reasonably necessary to protect

 

 

Novelis and/or any of its affiliates from unfair competition and, if overbroad, should be
reformed as reasonable.

4. Acknowledgment: By signing this Agreement and in connection with the release of any
and all claims as set forth in paragraph 2, Employee and Novelis acknowledge, agree and represent
that:

	 	(a)	 	The execution of this Agreement shall not constitute any admission
by Novelis that it has violated any federal, state or local statute, ordinance,
rule, regulation or common law, or that Employee has any meritorious claims
whatsoever against Novelis.
	 
	 	(b)	 	No promise or inducement has been offered to Employee, except as
herein set forth;
	 
	 	(c)	 	This Agreement is being executed voluntarily and knowingly by
Employee and Novelis without reliance upon any statements by others or their
representatives concerning the nature or extent of any claims or damages or
legal liability therefore;
	 
	 	(d)	 	This Agreement has been written in understandable language, and all
provisions hereof are understood by Employee and Novelis;
	 
	 	(e)	 	Employee is advised, and has had an opportunity, to consult with an
attorney of Employee’s own choosing prior to executing this Agreement;
	 
	 	(f)	 	Employee will receive, pursuant to this Agreement, a taxable lump
sum of Fifty Thousand Dollars ($50,000.00), which is consideration in addition
to anything of value to which the Employee is already entitled;
	 
	 	(g)	 	Employee has twenty-one (21) days from the receipt of this Agreement
in which to decide whether to enter into this Agreement, sign it and return it
to Bob Virtue at Novelis’ Human Resource Department, at 3399 Peachtree Rd. NE,
Suite 1500 Atlanta, GA 30326 The Employee may sign this Agreement and return it
to Bob Virtue prior to the expiration of the 21-day period; and
	 
	 	(h)	 	Employee has the right to revoke this Agreement during the seven (7)
day period by mailing a letter of revocation to Bob Virtue at the above address.
Such a letter must be signed and received by Novelis no later than the seventh
day after the date on which Employee signed the Agreement. This Agreement shall
not become effective or enforceable until the seven (7) day revocation period
expires.
	 
	 	(i)	 	This Agreement shall be governed by the law of Georgia.

2

 

5. Entirety of Agreement: This Agreement contains the entire agreement among the parties
hereto with respect to the subject matter hereof, with the exceptions being the CIC Agreement,
the Novelis Pension Plan, Supplemental Retirement Plan, the Alcan Pension Plan, and the benefits
summarized in the Termination of Employment letter dated November 1, 2007, the terms of which
are incorporated herein by reference. This Agreement may not be modified, except in writing
signed by Employee and Novelis.

6. Severability: If any term, condition, clause or provision of any paragraph of this
Agreement shall be determined by a court of competent jurisdiction to be void or invalid as a
matter of law, or for any other reason, then only that term, condition, clause or provision as
is determined to be void or invalid shall be stricken from this Agreement and the remaining
portions of such paragraph shall remain in full force and effect in all other respects.

IN WITNESS WHEREOF, Employee and Novelis have freely, voluntarily and knowingly executed this
Agreement as of the day and year first written above.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 
	 	 
	/s/ David
Godsell
	 	/s/ Bob Virtue	 	 
	 

	 	 	 	 
	Employee

	 	Novelis Inc.	 	 
	 
	 	 	 	 
	November 12, 2007
	 	November 12, 2007	 	 
	 

	 	 	 	 
	Date

	 	Date	 	 

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