##### 



Exhibit
10.4




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##### 



PagePREAMBLE
    
    
    
    
    1RECITALS
    
    
    
    
    1AGREEMENT
    
    
    
    
    2ARTICLE IDEFINITIONS AND INTERPRETATIONSECTION 1.1.
    
    DEFINITIONS
    
    
    2SECTION 1.2.
    
    INTERPRETATION
    
    
    9SECTION 1.3.
    
    RESOLUTION OF DRAFTING AMBIGUITIES
    
    
    9SECTION 1.4.
    
    PERFECTION CERTIFICATE
    
    
    9ARTICLE IIGRANT OF SECURITY AND SECURED OBLIGATIONSSECTION 2.1.
    
    GRANT OF SECURITY INTEREST
    
    
    9SECTION 2.2.
    
    FILINGS
    
    
    10ARTICLE IIIPERFECTION; SUPPLEMENTS; FURTHER
ASSURANCES; USE OF PLEDGED COLLATERALSECTION 3.1.
    
    DELIVERY OF CERTIFICATED SECURITIES COLLATERAL
    
    
    11SECTION 3.2.
    
    PERFECTION OF UNCERTIFICATED SECURITIES COLLATERAL
    
    
    12SECTION 3.3.
    
    FINANCING STATEMENTS AND OTHER FILINGS; MAINTENANCE OF PERFECTED
SECURITY INTEREST
    
    
    12SECTION 3.4.
    
    OTHER ACTIONS
    
    
    13SECTION 3.5.
    
    JOINDER OF ADDITIONAL GUARANTORS
    
    
    16SECTION 3.6.
    
    SUPPLEMENTS; FURTHER ASSURANCES
    
    
    16ARTICLE IVREPRESENTATIONS, WARRANTIES AND COVENANTSSECTION 4.1.
    
    TITLE
    
    
    17SECTION 4.2.
    
    VALIDITY OF SECURITY INTEREST
    
    
    17
 
 -i-




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##### 



PageSECTION 4.3.
    
    DEFENSE OF CLAIMS; TRANSFERABILITY OF PLEDGED COLLATERAL
    
    
    17SECTION 4.4.
    
    OTHER FINANCING STATEMENTS
    
    
    18SECTION 4.5.
    
    INVENTORY AND EQUIPMENT
    
    
    18SECTION 4.6.
    
    DUE AUTHORIZATION AND ISSUANCE
    
    
    19SECTION 4.7.
    
    CONSENTS, ETC.
    
    
    19SECTION 4.8.
    
    PLEDGED COLLATERAL
    
    
    19SECTION 4.9.
    
    INSURANCE
    
    
    19ARTICLE VCERTAIN PROVISIONS CONCERNING SECURITIES COLLATERALSECTION 5.1.
    
    PLEDGE OF ADDITIONAL SECURITIES COLLATERAL
    
    
    19SECTION 5.2.
    
    VOTING RIGHTS; DISTRIBUTIONS; ETC.
    
    
    20SECTION 5.3.
    
    DEFAULTS, ETC
    
    
    21SECTION 5.4.
    
    ORGANIZATIONAL DOCUMENTS
    
    
    21SECTION 5.5.
    
    CERTAIN AGREEMENTS OF PLEDGORS AS ISSUERS AND HOLDERS OF EQUITY INTERESTS
    
    
    21ARTICLE 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
    
    
    23ARTICLE VIICERTAIN PROVISIONS CONCERNING RECEIVABLESSECTION 7.1.
    
    MAINTENANCE OF RECORDS
    
    
    24SECTION 7.2.
    
    MODIFICATION OF TERMS, ETC
    
    
    24SECTION 7.3.
    
    COLLECTION
    
    
    24ARTICLE VIIITRANSFERSSECTION 8.1.
    
    TRANSFERS OF PLEDGED COLLATERAL
    
    
    25
 
 -ii-




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##### 



PageARTICLE IXREMEDIESSECTION 9.1.
    
    REMEDIES
    
    
    25SECTION 9.2.
    
    NOTICE OF SALE
    
    
    27SECTION 9.3.
    
    WAIVER OF NOTICE AND CLAIMS
    
    
    27SECTION 9.4.
    
    CERTAIN SALES OF PLEDGED COLLATERAL
    
    
    27SECTION 9.5.
    
    NO WAIVER; CUMULATIVE REMEDIES
    
    
    29SECTION 9.6.
    
    CERTAIN ADDITIONAL ACTIONS REGARDING INTELLECTUAL PROPERTY
    
    
    29ARTICLE XAPPLICATION OF PROCEEDSSECTION 10.1.
    
    APPLICATION OF PROCEEDS
    
    
    29ARTICLE 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
    
    
    31SECTION 11.4.
    
    TERMINATION; RELEASE
    
    
    32SECTION 11.5.
    
    MODIFICATION IN WRITING
    
    
    32SECTION 11.6.
    
    NOTICES
    
    
    32SECTION 11.7.
    
    GOVERNING LAW, CONSENT TO JURISDICTION AND SERVICE OF PROCESS; WAIVER OF JURY TRIAL
    
    
    32SECTION 11.8.
    
    SEVERABILITY OF PROVISIONS
    
    
    32SECTION 11.9.
    
    EXECUTION IN COUNTERPARTS
    
    
    32SECTION 11.10.
    
    BUSINESS DAYS
    
    
    33SECTION 11.11.
    
    NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITION
    
    
    33SECTION 11.12.
    
    NO CLAIMS AGAINST COLLATERAL AGENT
    
    
    33SECTION 11.13.
    
    NO RELEASE
    
    
    33SECTION 11.14.
    
    OBLIGATIONS ABSOLUTE
    
    
    33SECTION 11.15.
    
    INTERCREDITOR AGREEMENT GOVERNS
    
    
    34SECTION 11.16.
    
    DELIVERY OF COLLATERAL
    
    
    34SECTION 11.17.
    
    MORTGAGES
    
    
    34SECTION 11.18.
    
    CONFLICTS
    
    
    34SIGNATURES
    
    
    
    
    S-1
 
 -iii-




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##### 



EXHIBIT 1
    
    Form of Issuers AcknowledgmentEXHIBIT 2
    
    Form of Securities Pledge AmendmentEXHIBIT 3
    
    Form of Joinder AgreementEXHIBIT 4
    
    Form of Copyright Security AgreementEXHIBIT 5
    
    Form of Patent Security AgreementEXHIBIT 6
    
    Form of Trademark Security AgreementEXHIBIT 7
    
    Form of Bailee Letter
 
 -iv-




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##### 



Agreement Canadian Borrower U.S. Borrower Guarantors Pledgors Pledgor Collateral
Agent
 RECITALS
 Credit Agreement




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##### 



-2- AGREEMENT
    Definitions
 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
 mutatis mutandis
  Account Debtor
 Agreement
 Bankruptcy Code
 Bailee Letter Exhibit
7
 Canadian Borrower
 Collateral Agent
 Collateral Report




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##### 



-3- Collateral Support
 Commodity Account Control Agreement
 Contracts
 Control
 Control Agreements
 Copyrights et seq.
 Copyright Security Agreement Exhibit 4
 Credit Agreement Recital A
 Deposit Account Control Agreement
 Deposit Accounts
 Discharge of Revolving Credit Obligations




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##### 



-4- Distributions
 Excluded Commodities Accounts
 Excluded Deposit Accounts provided
 Excluded Securities Accounts
 Excluded Property




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##### 



-5-   provided however
 provided however
 General Intangibles







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##### 



-6-  Guarantors
 Immaterial Intellectual Property Collateral
 Instruments
 Intellectual Property
 Intellectual Property Collateral
 Intellectual Property Licenses
 Intercompany Notes Schedule 11
 Intercreditor Agreement
 Investment Property
 Joinder Agreement Exhibit
3




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##### 



-7- Material Intellectual Property Collateral
 Mortgaged Property
 Patents
 Patent Security Agreement Exhibit 5
 Perfection Certificate Section 3.5
 Permitted Encumbrances
 person
 Pledge Amendment Section 5.1
 Pledged Collateral Section
2.1
 Pledged Securities Schedule 10







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##### 



-8-  Pledgor
 Receivables
 Revolving Credit Agents
 Revolving Credit Security Documents
 Securities Account Control Agreement
 Securities Collateral
 Trade Secrets and Other Proprietary Rights Schedule 12(a)
 Trademarks







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##### 



-9-  Trademark Security Agreement Exhibit 6
 UCC provided however
 U.S. Borrower
 Interpretation
 Resolution of Drafting Ambiguities i.e
 Perfection Certificate
   Grant of Security Interest Pledged Collateral







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##### 



-10- (i)
    
    all Accounts;(ii)
    
    all Equipment, Goods, Inventory and Fixtures;(iii)
    
    all Documents, Instruments and Chattel Paper;(iv)
    
    all Letters of Credit and Letter-of-Credit Rights;(v)
    
    all Securities Collateral;(vi)
    
    all Investment Property;(vii)
    
    all Patents, Trademarks, Copyrights, Intellectual Property
Licenses and Trade Secrets and Other Proprietary Rights;(viii)
    
    the Commercial Tort Claims described on Schedule 13 to the
Perfection Certificate;(ix)
    
    all General Intangibles;(x)
    
    all Money and all Deposit Accounts;(xi)
    
    all Supporting Obligations;(xii)
    
    all books and records relating to the Pledged Collateral;
and(xiii)
    
    to the extent not covered by clauses (i) through (xii) of this sentence,
all other personal property of such Pledgor, whether tangible or intangible,
and all Proceeds and products of each of the foregoing and all accessions to,
substitutions and replacements for, and rents, profits and products of, each
of the foregoing, any and all Proceeds of any insurance, indemnity, warranty
or guaranty payable to such Pledgor from time to time with respect to any of
the foregoing.
  Filings







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##### 



-11-     
 Delivery of Certificated Securities Collateral provided




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##### 



-12-  Perfection of Uncertificated Securities Collateral Exhibit 1 Section 3.1
 Financing Statements and Other Filings; Maintenance of Perfected Security
Interest







---



##### 



-13- Schedule 7
 Other Actions
 Instruments and Tangible Chattel Paper Schedule 11 Schedule 11
 Deposit Accounts Schedule 14







---



##### 



-14-  Securities Accounts and Commodity Accounts Schedule 14
  Electronic Chattel Paper and Transferable Records







---



##### 



-15- Schedule 11(a)
 Letter-of-Credit Rights
 Commercial Tort Claims Schedule 13







---



##### 



-16- Landlords Access Agreements/Bailee Letters
 Joinder of Additional Guarantors Exhibit
3
 Supplements; Further Assurances







---



##### 



-17-     Title
 Validity of Security Interest Schedule 6
 Defense of Claims; Transferability of Pledged Collateral







---



##### 



-18- Other Financing Statements Schedule 7
 Inventory and Equipment
 Section 3.4(g) provided
 Section 4.5(a)







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##### 



-19- Due Authorization and Issuance
 Consents, etc
 Pledged Collateral
 Insurance
   Pledge of Additional Securities Collateral Exhibit 2 Pledge Amendment Section 3.1 Section 3.2







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##### 



-20- Voting Rights; Distributions; etc
  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)







---



##### 



-21- Section 5.2(c)(ii)
 Defaults, etc
 Organizational Documents
 Certain Agreements of Pledgors As Issuers and Holders of Equity
Interests







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##### 



-22-  
 Grant of Intellectual Property License Article IX provided
 Protection and Maintenance of Intellectual Property Collateral Section 6.3







---



##### 



-23-  After-Acquired Property Schedules 12(a) 12(b)
 Litigation Section 6.4







---



##### 



-24-    Maintenance of Records
 Modification of Terms, etc
 Collection







---



##### 



-25-    Transfers of Pledged Collateral
   Remedies
  provided however







---



##### 



-26-  Section
9.1(iv)
 Article X
 Article
X
   Section
9.2







---



##### 



-27-  Notice of Sale
 Waiver of Notice and Claims Article IX
 Certain Sales of Pledged Collateral







---



##### 



-28-    Section 9.4 Section 9.4







---



##### 



-29- No Waiver; Cumulative Remedies
   Certain Additional Actions Regarding Intellectual Property
   Application of Proceeds







---



##### 



-30-   Concerning Collateral Agent
    Sections 11.17 11.18







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##### 



-31-  Collateral Agent May Perform; Collateral Agent Appointed
Attorney-in-Fact provided however Section 11.2 Section 11.2
 Continuing Security Interest; Assignment







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##### 



-32-  Termination; Release
 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







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##### 



-33-  Business Days
 No Credit for Payment of Taxes or Imposition
 No Claims Against Collateral Agent
 No Release Section 11.13
 Obligations Absolute







---



##### 



-34-      INTERCREDITOR AGREEMENT GOVERNS
 Delivery of Collateral
 Mortgages
 Conflicts







---



##### 



-35-







---



##### 



S-1  NOVELIS INC., as a PledgorBy:
    /s/ Orville LunkingName:
    Orville LunkingTitle:
    Vice President and TreasurerNOVELIS CORPORATION, as a PledgorBy:

/s/
Orville LunkingName:
    Orville LunkingTitle:
    Authorized SignatoryNOVELIS PAE CORPORATION, as a PledgorBy:

/s/
Orville LunkingName:
    Orville LunkingTitle:
    Authorized SignatoryNOVELIS FINANCES USA LLC, as a PledgorBy:

/s/
Orville LunkingName:
    Orville LunkingTitle:
    Authorized SignatoryNOVELIS SOUTH AMERICA HOLDINGS LLC, as a PledgorBy:

/s/
Orville LunkingName:
    Orville LunkingTitle:
    Vice President and Treasurer







---



##### 



S-2  ALUMINUM UPSTREAM HOLDINGS LLC, as a PledgorBy:

/s/ Orville LunkingName:
    Orville LunkingTitle:
    Vice President and Treasurer







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##### 



S-3  UBS AG, STAMFORD BRANCH,
as Collateral AgentBy:
    /s/ Mary E. EvansName:
    Mary E. EvansTitle:
    Associate DirectorBy:

/s/
David JulieName:
    David B. JulieTitle:
    Associate Director







---



##### 



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







---



##### 



Securities Pledge
Amendment Pledgor Collateral Agent Section 5.1 Security Agreement Collateral Agent
     PERCENTAGE OFCLASS
    
    
    
    
    
    
    
    
    
    
    NUMBER OF
    
    
    ALL ISSUED CAPITALOF STOCK
    
    
    PAR
    
    
    CERTIFICATE
    
    
    SHARES OR
    
    
    OR OTHER EQUITYISSUER
    
    OR INTERESTS
    
    
    VALUE
    
    
    NO(S).
    
    
    INTERESTS
    
    
    INTERESTS OF ISSUER







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##### 



-2-  PRINCIPAL
    
    
    DATE OF
    
    
    INTEREST
    
    
    MATURITYISSUER
    
    AMOUNT
    
    
    ISSUANCE
    
    
    RATE
    
    
    DATE
 [                                                                 ],
as PledgorBy:Name:Title: AGREED TO AND ACCEPTED:
UBS AG, STAMFORD BRANCH,
as Collateral AgentBy:Name:Title:By:Name:Title:







---



##### 



Security Agreement Collateral Agent
 Joinder Agreement New Pledgor Section 3.5







---



##### 



-2-







---



##### 



-3-  [NEW PLEDGOR]By:Name:Title: AGREED TO AND ACCEPTED:
UBS AG, STAMFORD BRANCH,
as Collateral AgentBy:Name:Title:By:Name:Title:




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##### 



Copyright Security
Agreement   Assignor Assignors Assignee
 WITNESSETH
 Security Agreement
  Defined Terms Copyrights et
seq.
 Grant of Security Interest in Copyright Collateral Pledged Copyright Collateral




---



##### 



-2-   Security Agreement
 Recordation
 Termination
 Counterparts
 Governing Law
 INTERCREDITOR AGREEMENT GOVERNS




---



##### 



-3-




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##### 



-4-  [ASSIGNORS]1By:Name:Title:  UBS AG, STAMFORD BRANCH,
as AssigneeBy:Name:Title:By: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.




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##### 



-5- SCHEDULE I
to
COPYRIGHT SECURITY AGREEMENT  COPYRIGHT REGISTRATIONS AND COPYRIGHT APPLICATIONS
 Copyright Registrations:
 registrationowner
    
    number
    
    title of work
 Copyright Applications:
 owner
    

title of work




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##### 



Patent Security Agreement   Assignors Assignee
 WITNESSETH
 Security Agreement
  Defined Terms Patents
 Grant of Security Interest in Patent Collateral Pledged Patent Collateral




---



##### 



-2-   Security Agreement
 Recordation
 Termination
 Counterparts
 Governing Law
 INTERCREDITOR AGREEMENT GOVERNS




---



##### 



-3-




---



##### 



-4-  [ASSIGNORS]2By:Name:Title:  UBS AG, STAMFORD BRANCH,
as AssigneeBy:Name:Title:By: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.




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##### 



-5- SCHEDULE I
to
PATENT SECURITY AGREEMENT  PATENT REGISTRATIONS AND PATENT APPLICATIONS
 Patent Registrations:
 registrationowner
    
    number
    
    name
 Patent Applications:
 applicationowner
    
    number
    
    name




---



##### 



Trademark Security
Agreement   Assignors Assignee
 WITNESSETH
 Security Agreement
  Defined Terms Trademarks
 Grant of Security Interest in Trademark Collateral Pledged Trademark Collateral




---



##### 



-2-   Security Agreement
 Recordation
 Termination
 Counterparts
 Governing Law
 INTERCREDITOR AGREEMENT GOVERNS




---



##### 



-3-




---



##### 



-4-  [ASSIGNORS]3By:Name:Title:  UBS AG, STAMFORD BRANCH,
as AssigneeBy:Name:Title:By: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.




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##### 



-5- SCHEDULE I
to
TRADEMARK SECURITY AGREEMENT  TRADEMARK REGISTRATIONS AND TRADEMARK APPLICATIONS
 Trademark Registrations:
 REGISTRATIONOWNER
    
    NUMBER
    
    TRADEMARK
 Trademark Applications:
 APPLICATIONOWNER
    
    NUMBER
    
    TRADEMARK




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##### 



Bailor  Parent  Bailee   Premises
 Borrowers Lenders Credit Agreement Agent Collateral




---



##### 



7




---



##### 



Signature pages follow
 
 8




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##### 



[__________________]
[Address]By:Name:Title:  [________________________]
[Address]By:Title:  UBS AG, STAMFORD BRANCH, as Agent
677 Washington Boulevard
Stamford, Connecticut 06901
Attention: Christopher Gomes
Facsimile No: 203-719-3180By:Name:Title:By:Name:Title: