EXHIBIT 10.4
Published on March 20, 2006
Exhibit 10.4 - ------------------------------------------------------------------------------------------------------------------------ Novelis Founders Performance Award - Jack Morrison - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ Novelis Share Price Targets - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ Initial Price - March 24 $21.82 - NYSE Closing Price on March 24, 2005 - ------------------------------------------------------------------------------------------------------------------------ 8% Increase Price $23.57 - Tranche #1 - ------------------------------------------------------------------------------------------------------------------------ 16% Increase Price $25.31 - Tranche #2 - ------------------------------------------------------------------------------------------------------------------------ 25% Increase Price $27.28 - Tranche #3 - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ Performance Share Units (PSUs) To Be Awarded - ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Share Start of End of # of PSUs Price Measurement Measurement Awarded Target [1] Period Period - ------------------------------------------------------------------------------------------------------------------------ Tranche #1 7,200 $ 23.57 March 24, 2005 March 23, 2008 - ------------------------------------------------------------------------------------------------------------------------ Tranche #2 7,200 $ 25.31 March 24, 2006 March 23, 2008 - ------------------------------------------------------------------------------------------------------------------------ Tranche #3 7,200 $ 27.28 March 24, 2007 March 23, 2008 - ------------------------------------------------------------------------------------------------------------------------ Total Potential Award 21,600 - ---------------------------------------------------- [1] Closing share price on the NYSE must reach or exceed this level for 15 consecutive trading days - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ PSU Value at Share Price Target - ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------- # of PSUs Share Price Cash Paid in Cash Target Payment [1] - ------------------------------------------------------------------------------------------------- Tranche #1 7,200 $ 23.57 $ 169,704 - ------------------------------------------------------------------------------------------------- Tranche #2 7,200 $ 25.31 $ 182,232 - ------------------------------------------------------------------------------------------------- Tranche #3 7,200 $ 27.28 $ 196,416 - ------------------------------------------------------------------------------------------------- Total Potential Value $ 548,352 - ------------------------------------------------------------------------------------------------- [1] Actual payment will be based on closing share price on NYSE for 5 trading days prior to payment - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ Payment Date - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ Tranche #1 Later of March 24, 2006 or six months after PSUs awarded - ------------------------------------------------------------------------------------------------------------------------ Tranche #2 Later of March 24, 2007 or six months after PSUs awarded - ------------------------------------------------------------------------------------------------------------------------ Tranche #3 Later of March 24, 2008 or six months after PSUs awarded - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ Agreed and Accepted by: Executive's Name: Jack Morrison Date: March 31, 2005 ------------- Executive's Signature: /s/ Jack Morrison ------------------------------------