Exhibit 10.4




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PagePREAMBLE
    
    
    1RECITALS
    
    
    1AGREEMENT
    
    
    2ARTICLE IDEFINITIONS AND INTERPRETATIONSECTION 1.1. DEFINITIONS
    
    
    2SECTION 1.2. INTERPRETATION
    
    
    10SECTION 1.3. RESOLUTION OF DRAFTING AMBIGUITIES
    
    
    10SECTION 1.4. PERFECTION CERTIFICATE
    
    
    10ARTICLE IIGRANT OF SECURITY AND SECURED OBLIGATIONSSECTION 2.1. GRANT OF SECURITY INTEREST
    
    
    10SECTION 2.2. FILINGS
    
    
    11ARTICLE IIIPERFECTION; SUPPLEMENTS; FURTHER ASSURANCES; 

USE OF PLEDGED COLLATERALSECTION 3.1. DELIVERY OF CERTIFICATED SECURITIES COLLATERAL
    
    
    12SECTION 3.2. PERFECTION OF UNCERTIFICATED SECURITIES COLLATERAL
    
    
    12SECTION 3.3. FINANCING STATEMENTS AND OTHER FILINGS; MAINTENANCE OF
PERFECTED SECURITY INTEREST
    
    
    13SECTION 3.4. OTHER ACTIONS
    
    
    13SECTION 3.5. JOINDER OF ADDITIONAL GUARANTORS
    
    
    17SECTION 3.6. SUPPLEMENTS; FURTHER ASSURANCES
    
    
    17ARTICLE IVREPRESENTATIONS, WARRANTIES AND COVENANTSSECTION 4.1. TITLE
    
    
    18SECTION 4.2. VALIDITY OF SECURITY INTEREST
    
    
    18SECTION 4.3. DEFENSE OF CLAIMS; TRANSFERABILITY OF PLEDGED COLLATERAL
    
    
    18
 -i-




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PageSECTION 4.4. OTHER FINANCING STATEMENTS
    
    
    19SECTION 4.5. INVENTORY AND EQUIPMENT
    
    
    19SECTION 4.6. DUE AUTHORIZATION AND ISSUANCE
    
    
    19SECTION 4.7. CONSENTS, ETC.
    
    
    20SECTION 4.8. PLEDGED COLLATERAL
    
    
    20SECTION 4.9. INSURANCE
    
    
    20ARTICLE VCERTAIN PROVISIONS CONCERNING SECURITIES COLLATERALSECTION 5.1. PLEDGE OF ADDITIONAL SECURITIES COLLATERAL
    
    
    20SECTION 5.2. VOTING RIGHTS; DISTRIBUTIONS; ETC.
    
    
    20SECTION 5.3. [INTENTIONALLY OMITTED]
    
    
    22SECTION 5.4. [INTENTIONALLY OMITTED]
    
    
    22SECTION 5.5. CERTAIN AGREEMENTS OF PLEDGORS AS ISSUERS AND HOLDERS OF EQUITY INTERESTS
    
    
    22ARTICLE VICERTAIN PROVISIONS CONCERNING INTELLECTUAL 
PROPERTY COLLATERALSECTION 6.1. GRANT OF INTELLECTUAL PROPERTY LICENSE
    
    
    22SECTION 6.2. PROTECTION AND MAINTENANCE OF INTELLECTUAL PROPERTY COLLATERAL
    
    
    22SECTION 6.3. AFTER-ACQUIRED PROPERTY
    
    
    23SECTION 6.4. LITIGATION
    
    
    24ARTICLE VIICERTAIN PROVISIONS CONCERNING RECEIVABLESSECTION 7.1. MAINTENANCE OF RECORDS
    
    
    24SECTION 7.2. MODIFICATION OF TERMS, ETC
    
    
    24SECTION 7.3. COLLECTION
    
    
    25SECTION 7.4. LEGEND
    
    
    25SECTION 7.5. SPECIAL REPRESENTATIONS AND WARRANTIES AND COVENANTS
    
    
    25ARTICLE VIIITRANSFERSSECTION 8.1. TRANSFERS OF PLEDGED COLLATERAL
    
    
    26
 -ii-




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PageARTICLE IXREMEDIESSECTION 9.1. REMEDIES
    
    
    26SECTION 9.2. NOTICE OF SALE
    
    
    28SECTION 9.3. WAIVER OF NOTICE AND CLAIMS
    
    
    28SECTION 9.4. CERTAIN SALES OF PLEDGED COLLATERAL
    
    
    28SECTION 9.5. NO WAIVER; CUMULATIVE REMEDIES
    
    
    29SECTION 9.6. CERTAIN ADDITIONAL ACTIONS REGARDING INTELLECTUAL PROPERTY
    
    
    30ARTICLE XAPPLICATION OF PROCEEDSSECTION 10.1. APPLICATION OF PROCEEDS
    
    
    30ARTICLE XIMISCELLANEOUSSECTION 11.1. CONCERNING COLLATERAL AGENT
    
    
    30SECTION 11.2. COLLATERAL AGENT MAY PERFORM; COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
    
    
    31SECTION 11.3. CONTINUING SECURITY INTEREST; ASSIGNMENT
    
    
    32SECTION 11.4. TERMINATION; RELEASE
    
    
    32SECTION 11.5. MODIFICATION IN WRITING
    
    
    33SECTION 11.6. NOTICES
    
    
    33SECTION 11.7. GOVERNING LAW, CONSENT TO JURISDICTION AND SERVICE OF PROCESS; WAIVER OF JURY
TRIAL
    
    
    33SECTION 11.8. SEVERABILITY OF PROVISIONS
    
    
    33SECTION 11.9. EXECUTION IN COUNTERPARTS
    
    
    33SECTION 11.10. BUSINESS DAYS
    
    
    33SECTION 11.11. NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITION
    
    
    33SECTION 11.12. NO CLAIMS AGAINST COLLATERAL AGENT
    
    
    34SECTION 11.13. NO RELEASE
    
    
    34SECTION 11.14. OBLIGATIONS ABSOLUTE
    
    
    34SECTION 11.15. INTERCREDITOR AGREEMENT GOVERNS
    
    
    35SECTION 11.16. DELIVERY OF COLLATERAL
    
    
    35SECTION 11.17. MORTGAGES
    
    
    35SECTION 11.18. CONFLICTS
    
    
    35SIGNATURES
    
    
    S-1
 -iii-




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-iv-




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Agreement Parent Borrower Novelis Corporation Novelis
PAE Novelis Brand Novelis South Aluminum Upstream U.S.
Borrowers Guarantors Pledgors Pledgor Collateral Agent
 R E C I T A L S
 Credit Agreement




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A G R E E M E N T
    .
 provided
 Accounts Bank Chattel Paper Commercial Tort Claim Commodity Account Commodity Contract Commodity Intermediary Documents Electronic Chattel Paper Entitlement Order Equipment Financial Asset Fixtures Goods Inventory Letter-of-Credit Rights Letters of Credit Money Payment Intangibles Proceeds Records Securities Account Securities Entitlement Securities Intermediary Supporting Obligations Tangible Chattel Paper
   Account Debtor
 Agreement
 Bailee Letter Exhibit 7
 Bankruptcy Code
 Collateral Agent




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Collateral Report
 Collateral Support
 Commodity Account Control Agreement
 Contracts
 Control
 Control Agreements
  Copyright
 Copyright Security Agreement Exhibit 4
 Credit Agreement Recital A
 Deposit Account Control Agreement
 Deposit Accounts




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Discharge of Pari Passu Secured Obligations
 Distributions
 Excluded Commodities Accounts
 Excluded Deposit Accounts Schedule 14 provided
 Excluded Securities Accounts
 Excluded Property




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provided however




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provided however
 General Intangibles
 Guarantors
 Immaterial Intellectual Property Collateral
 Instruments
 Intellectual Property




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Intellectual Property Collateral
 Intellectual Property Licenses
 Intercompany Notes Schedule 11
 Intercreditor Agreement
 Investment Property
 Joinder Agreement Exhibit 3
 Material Intellectual Property Collateral
 Mortgaged Property
 Parent Borrower
 Patent Security Agreement Exhibit 5
 Patents




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Perfection Certificate Section 3.5
 Permitted Encumbrances
 Pledge Amendment Section 5.1
 Pledged Collateral Section
2.1
 Pledged Securities Schedule 10
 Pledgor
 Receivables




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Securities Account Control Agreement
 Securities Collateral
 Term Loan Security Documents
 Term Loan Collateral Agent
 Trade Secrets and Other Proprietary Rights
 Trademark Security Agreement Exhibit 6
 Trademarks




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Treasury Obligations
 UCC provided however
 U.S. Borrowers
 Interpretation mutatis mutandis
 Resolution of Drafting Ambiguities i.e
 Perfection Certificate
   Grant of Security Interest Pledged
Collateral




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Schedule 13




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Delivery of Certificated Securities Collateral provided
 Perfection of Uncertificated Securities Collateral




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Exhibit 1 Section 3.1
 Financing Statements and Other Filings; Maintenance of Perfected Security Interest Schedule 7
 Other Actions




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Instruments and Tangible Chattel Paper Schedule 11 Schedule 11
 Deposit Accounts Schedule 14 Schedule 14
 Securities Accounts and Commodity Accounts Schedule 14




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Schedule 14
  Electronic Chattel Paper and Transferable Records Schedule 11(a)




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Letter-of-Credit Rights
 Commercial Tort Claims Schedule 13
 Landlords Access Agreements/Bailee Letters




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Joinder of Additional Guarantors Section 5.11(e) Exhibit 3 5.11(b) (d) (e) Sections 5.11(b) (d) (e) Section 5.11(e)
 Supplements; Further Assurances




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Title
 Validity of Security Interest Schedule 6
 Defense of Claims; Transferability of Pledged Collateral




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Other Financing Statements Schedule 7
 Inventory and Equipment
 Section 3.4(g) provided
 Section 4.5(a)
 Due Authorization and Issuance




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Consents, etc
 Pledged Collateral
 Insurance
   Pledge of Additional Securities Collateral Exhibit 2 Pledge Amendment Section 3.1 Section 3.2
 Voting Rights; Distributions; etc




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provided however
 provided however
 Section 5.2(a)(i) Section 5.2(a)(ii)
  Section 5.2(a)(i)
 Section 5.2(a)(ii)
 Section 5.2(c)(i) Section 5.2(c)(ii)
 Section 5.2(c)(ii)




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[INTENTIONALLY OMITTED]
 [INTENTIONALLY OMITTED]
 Certain Agreements of Pledgors As Issuers and Holders of Equity Interests
    
 Grant of Intellectual Property License Article
IX provided
 Protection and Maintenance of Intellectual Property Collateral




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Section 6.3
 After-Acquired Property Schedules 12(a) 12(b)




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Litigation Section 6.4
   Maintenance of Records
 Modification of Terms, etc




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Collection
 Legend
 Special Representations and Warranties and Covenants




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Transfers of Pledged Collateral
   Remedies
  provided however




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Section 9.1(iv)
 Article X
 Article X
   Section 9.2




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Notice of Sale
 Waiver of Notice and Claims Article IX
 Certain Sales of Pledged Collateral




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Section 9.4 Section 9.4
 No Waiver; Cumulative Remedies




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Certain Additional Actions Regarding Intellectual Property
   Application of Proceeds
   Concerning Collateral Agent




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Sections 11.17 11.18
  Collateral Agent May Perform; Collateral Agent Appointed Attorney-in-Fact




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provided however Section 11.2 Section 11.2
 Continuing Security Interest; Assignment
 Termination; Release




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Modification in Writing
 Notices Section 11.6
 Governing Law, Consent to Jurisdiction and Service of Process; Waiver of Jury Trial mutatis mutandis
 Severability of Provisions
 Execution in Counterparts
 Business Days
 No Credit for Payment of Taxes or Imposition




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No Claims Against Collateral Agent
 No Release Section 11.13
 Obligations Absolute




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INTERCREDITOR AGREEMENT GOVERNS
 Delivery of Collateral
 Mortgages
 Conflicts
 concert
 concert




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NOVELIS INC., as a PledgorBy:

/s/  Randal P. MillerName:
    Randal P. MillerTitle:NOVELIS CORPORATION, as a PledgorBy:

/s/  Leslie J. Parrette Jr.Name:
    Leslie J. Parrette Jr.Title:NOVELIS PAE CORPORATION, as a PledgorBy:

/s/  Leslie J. Parrette Jr.Name:
    Leslie J. Parrette Jr.Title:NOVELIS BRAND LLC, as a PledgorBy:

/s/  Marion BarnesName:
    Marion BarnesTitle:NOVELIS SOUTH AMERICA HOLDINGS LLC,
as a PledgorBy:

/s/  Leslie J. Parrette Jr.Name:
    Leslie J. Parrette Jr.Title:




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ALUMINUM UPSTREAM HOLDINGS LLC,
as a PledgorBy:

/s/  Leslie J. Parrette Jr.Name:
    Leslie J. Parrette Jr.Title:NOVELIS ACQUISITIONS LLC,
as a PledgorBy:

/s/  Leslie J. Parrette Jr.Name:
    Leslie J. Parrette Jr.Title:NOVELIS NORTH AMERICA HOLDINGS INC.,
as a PledgorBy:

/s/  Leslie J. Parrette Jr.Name:
    Leslie J. Parrette Jr.Title:NOVELIS NO. 1 LIMITED PARTNERSHIPBy: 4260848 CANADA INC.Its: General PartnerBy:

/s/  Marion BarnesName:
    Marion BarnesTitle:




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NOVELIS SERVICES LTD.,By:

/s/  Randal P. MillerName:
    Randal P. MillerTitle:




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BANK OF AMERICA, N.A.,
as Collateral AgentBy:

/s/  Peter M. WaltherName:
    Peter M. WaltherTitle:
    Senior Vice President




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Security Agreement Collateral Agent
 [_________________________]By:Name:Title:




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Securities Pledge
Amendment Pledgor Collateral Agent Section 5.1 Security Agreement




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PERCENTAGE OFCLASS
    
    
    
    
    
    NUMBER OF SHARES
    
    ALL ISSUED CAPITALOF STOCK
    
    PAR
    
    CERTIFICATE
    
    OR
    
    OR OTHER EQUITYISSUER
    
    OR INTERESTS
    
    VALUE
    
    NO(S).
    
    INTERESTS
    
    INTERESTS OF ISSUER
  PRINCIPAL
    
    DATE OF
    
    INTEREST
    
    MATURITYISSUER
    
    AMOUNT
    
    ISSUANCE
    
    RATE
    
    DATE
 [__________________________],
as PledgorBy:Name:Title: AGREED TO AND ACCEPTED:
BANK OF AMERICA, N.A.,
as Collateral AgentBy:Name:Title: { PAGE |42-




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Security Agreement Collateral Agent
 Joinder Agreement New Pledgor Section 3.5 provided




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{ PAGE |42-




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[NEW PLEDGOR]By:Name:Title: AGREED TO AND ACCEPTED:
BANK OF AMERICA, N.A.,
as Collateral AgentBy:Name:Title:  { PAGE |43-




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Copyright Security
Agreement Assignor Assignors Assignee
 W I T N E S S E T H
 Security Agreement
  Defined Terms Copyrights et
seq.
 Grant of Security Interest in Copyright Collateral Pledged Copyright Collateral




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Security Agreement
 Recordation
 Termination
 Counterparts
 Governing Law
 INTERCREDITOR AGREEMENT GOVERNS
 { PAGE |42-




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{ PAGE |43-




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[ASSIGNORS]1By:Name:Title: Accepted and Agreed:
BANK OF AMERICA, N.A.,
as AssigneeBy:Name:Title: 
 1
    
    This document needs only to be executed by Pledgors that hold registered or
applied-for Copyrights that are subject to the Lien of the Security Agreement. {PAGE | 44 -




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Acknowledgement of ASSIGNOR
 State of
    
    )) ss.County of
    
    )
 , [corporation] [corporation] [Board of Directors] [corporation]
 
  { PAGE |45-




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SCHEDULE I
to
COPYRIGHT SECURITY AGREEMENT  COPYRIGHT REGISTRATIONS AND COPYRIGHT APPLICATIONS
 Copyright Registrations:
 REGISTRATIONOWNER
    
    NUMBER
    
    TITLE OF WORK
 Copyright Applications:
 OWNER
    
    TITLE OF WORK
 { PAGE |46-




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Patent Security Agreement Assignors Assignee
 W I T N E S S E T H
 Security Agreement
  Defined Terms Patents
 Grant of Security Interest in Patent Collateral Pledged Patent Collateral




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Security Agreement
 Recordation
 Termination
 Counterparts
 Governing Law
 INTERCREDITOR AGREEMENT GOVERNS
 { PAGE |42-




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{ PAGE |43-




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[ASSIGNORS]2By:Name:Title: Accepted and Agreed:
BANK OF AMERICA, N.A.,
as AssigneeBy:Name:Title: 
 2
    
    This document needs only to be executed by Pledgors that hold registered or
applied-for Patents that are subject to the Lien of the Security Agreement. { PAGE |44-




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Acknowledgement of ASSIGNOR
 State of
    
    )) ss.County of
    
    )
 , [corporation] [corporation] [Board of Directors] [corporation]
 
  { PAGE |45-




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SCHEDULE I
to
PATENT SECURITY AGREEMENT  PATENT REGISTRATIONS AND PATENT APPLICATIONS
 Patent Registrations:
 REGISTRATIONOWNER
    
    NUMBER
    
    NAME
 Patent Applications:
 APPLICATIONOWNER
    
    NUMBER
    
    NAME
 { PAGE |46-




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Trademark Security
Agreement Assignors Assignee
 W I T N E S S E T H
 Security Agreement
  Defined Terms Trademarks
 Grant of Security Interest in Trademark Collateral Pledged Trademark Collateral




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Security Agreement
 Recordation
 Termination
 Counterparts
 Governing Law
 { PAGE |42-




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INTERCREDITOR AGREEMENT GOVERNS
  { PAGE |43-




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[ASSIGNORS]3By:Name:Title: Accepted and Agreed:
BANK OF AMERICA, N.A.,
as AssigneeBy:Name:Title: 
 3
    
    This document needs only to be executed by Pledgors that hold registered or
applied-for Trademarks that are subject to the Lien of the Security Agreement. { PAGE |44-




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Acknowledgement of ASSIGNOR
 State of

    )) ss.County of

    )
 , [corporation] [corporation] [Board of Directors] [corporation]
 
  { PAGE |45-




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SCHEDULE I
to
TRADEMARK SECURITY AGREEMENT  TRADEMARK REGISTRATIONS AND TRADEMARK APPLICATIONS
 Trademark Registrations:
 REGISTRATIONOWNER
    
    NUMBER
    
    TRADEMARK
 Trademark Applications:
 APPLICATIONOWNER
    
    NUMBER
    
    TRADEMARK
 { PAGE |46-




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Bailor Parent Borrower Bailee Premises
 Borrowers Lenders Credit Agreement Agent Collateral




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provided
 { PAGE |42-




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Signature pages follow
 { PAGE |43-




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[________________]
[Address]By:Name:Title: CONSENTED AND AGREED TO:
[________________]
[Address]By:Name:Title:  
 By:Name:Title: { PAGE |44-