Exhibit 10.5


- --------------------------------------------------------------------------------------------------------------------------
         Novelis Founders Performance Award - Pierre Arseneault
- --------------------------------------------------------------------------------------------------------------------------



- --------------------------------------------------------------------------------------------------------------------------
           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                                   6,000                $ 23.57    March 24, 2005          March 23, 2008
- --------------------------------------------------------------------------------------------------------------------------
Tranche #2                                   6,000                $ 25.31    March 24, 2006          March 23, 2008
- --------------------------------------------------------------------------------------------------------------------------
Tranche #3                                   6,000                $ 27.28    March 24, 2007          March 23, 2008
- --------------------------------------------------------------------------------------------------------------------------
       Total Potential Award                18,000
- ---------------------------------------------------

[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                                   6,000                $ 23.57             $ 141,420
- ------------------------------------------------------------------------------------------------
Tranche #2                                   6,000                $ 25.31             $ 151,860
- ------------------------------------------------------------------------------------------------
Tranche #3                                   6,000                $ 27.28             $ 163,680
- ------------------------------------------------------------------------------------------------
       Total Potential Value                                                          $ 456,960
- ------------------------------------------------------------------------------------------------

[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: Pierre Arseneault



Executive's Signature:       /s/ Pierre Arseneault                        Date: March 31, 2005
                      ------------------------------------