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Exhibit
10.5
 EXECUTION VERSION




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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
    
    
    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
    
    
    16SECTION 3.6.
    
    SUPPLEMENTS; FURTHER ASSURANCES
    
    
    17ARTICLE IVREPRESENTATIONS, WARRANTIES AND COVENANTSSECTION 4.1.
    
    TITLE
    
    
    17SECTION 4.2.
    
    VALIDITY OF SECURITY INTEREST
    
    
    18
 
 -i-




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PageSECTION 4.3.
    
    DEFENSE OF CLAIMS; TRANSFERABILITY OF PLEDGED
COLLATERAL
    
    
    18SECTION 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
    
    
    20SECTION 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
    
    
    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
    
    
    25
 
 -ii-




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PageARTICLE VIIITRANSFERSSECTION 8.1.
    
    TRANSFERS OF PLEDGED COLLATERAL
    
    
    26ARTICLE 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
    
    
    30SECTION 9.6.
    
    CERTAIN ADDITIONAL ACTIONS REGARDING INTELLECTUAL
PROPERTY
    
    
    30ARTICLE XAPPLICATION OF PROCEEDSSECTION 10.1.
    
    APPLICATION OF PROCEEDS
    
    
    30ARTICLE XIMISCELLANEOUSSECTION 11.1.
    
    CONCERNING COLLATERAL AGENT
    
    
    31SECTION 11.2.
    
    COLLATERAL AGENT MAY PERFORM; COLLATERAL AGENT
APPOINTED ATTORNEY-IN-FACT
    
    
    32SECTION 11.3.
    
    CONTINUING SECURITY INTEREST; ASSIGNMENT
    
    
    32SECTION 11.4.
    
    TERMINATION; RELEASE
    
    
    33SECTION 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
    
    
    34SECTION 11.11.
    
    NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITION
    
    
    34SECTION 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
    
    
    35
 
 -iii-




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PageSECTION 11.17.
    
    MORTGAGES
    
    
    35SECTION 11.18.
    
    CONFLICTS
    
    
    35SIGNATURES
    
    
    
    
    S-1EXHIBIT 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 Novelis Finances Novelis South Aluminum Upstream U.S. Borrowers 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




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-3- Collateral Agent
 Collateral Report
 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




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-4- Deposit Accounts
 Discharge of Term Loan Obligations
 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




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-7-  Investment Property
 Joinder Agreement Exhibit
3
 LC Account
 Material Intellectual Property Collateral
 Mortgaged Property
 Patents
 Patent Security Agreement Exhibit 5
 Perfection Certificate Section 3.5
 Permitted Encumbrances




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-8- person
 Pledge Amendment Section 5.1
 Pledged Collateral Section
2.1
 Pledged Securities Schedule 10
 Pledgor
 Receivables
 Securities Account Control Agreement
 Securities Collateral
 Term Loan Agents
 Term Loan Security Documents
 Trade Secrets and Other Proprietary Rights




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-9- Schedule 12(a)
 Trademarks
 Trademark Security Agreement Exhibit 6
 Treasury Obligations
 UCC provided however
 U.S. Borrowers
 Interpretation
 Resolution of Drafting Ambiguities




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-10- i.e
 Perfection Certificate
   Grant of Security Interest Pledged Collateral
 (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




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-11- 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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-12-  
 Delivery of Certificated Securities Collateral provided
 Perfection of Uncertificated Securities Collateral Exhibit 1




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-13- Section 3.1
 Financing Statements and Other Filings; Maintenance of Perfected Security
Interest Schedule 7
 Other Actions
 Instruments and Tangible Chattel Paper Schedule 11 Schedule 11




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-14-  Deposit Accounts Schedule 14
 Securities Accounts and Commodity Accounts Schedule 14




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-15-   Electronic Chattel Paper and Transferable Records Schedule
11(a)
 Letter-of-Credit Rights




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-16-  Commercial Tort Claims Schedule 13
 Landlords Access Agreements/Bailee Letters
 Joinder of Additional Guarantors Exhibit
3




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-17-  Supplements; Further Assurances
    Title




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-18-  Validity of Security Interest Schedule 6
 Defense of Claims; Transferability of Pledged Collateral
 Other Financing Statements Schedule 7
 Inventory and Equipment
 Section 3.4(g) provided




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-19- Section 4.5(a)
 Due Authorization and Issuance
 Consents, etc
 Pledged Collateral
 Insurance




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-20-   Pledge of Additional Securities Collateral Exhibit 2 Pledge Amendment Section 3.1 Section
3.2
 Voting Rights; Distributions; etc
  provided however
 provided however
 Section 5.2(a)(i) Section 5.2(a)(ii)




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-21-  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)
 Defaults, etc
 Organizational Documents




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-22- 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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-23- Section 6.3
 After-Acquired Property Schedules 12(a) 12(b)




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-24-  Litigation Section 6.4
   Maintenance of Records
 Modification of Terms, etc




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-25-  Collection
 Legend
 Special Representations and Warranties and Covenants




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-26-    Transfers of Pledged Collateral
   Remedies
  provided however




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-27-   Section
9.1(iv)
 Article X
 Article
X
   Section
9.2




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-28-  Notice of Sale
 Waiver of Notice and Claims Article IX
 Certain Sales of Pledged Collateral




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-29-    Section 9.4 Section 9.4




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-30-  No Waiver; Cumulative Remedies
   Certain Additional Actions Regarding Intellectual Property
   Application of Proceeds




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-31-   Concerning Collateral Agent
    Sections 11.17 11.18




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-32-  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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-33- 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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-34-  Business Days
 No Credit for Payment of Taxes or Imposition
 No Claims Against Collateral Agent
 No Release Section 11.13
 Obligations Absolute




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-35-      INTERCREDITOR AGREEMENT GOVERNS
 Delivery of Collateral
 Mortgages
 Conflicts




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-36-




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NOVELIS INC., as a PledgorBy:

/s/
Orville LunkingName:
    Orville G. LunkingTitle:
    Vice President and TreasurerNOVELIS CORPORATION, as a PledgorBy:

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

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

/s/
Orville LunkingName:
    Orville G. LunkingTitle:
    Authorized Signatory




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NOVELIS SOUTH AMERICA HOLDINGS LLC, as a PledgorBy:

/s/
Orville LunkingName:
    Orville G. LunkingTitle:
    Vice President and TreasurerALUMINUM UPSTREAM HOLDINGS LLC, as a PledgorBy:
    /s/
Orville LunkingName:
    Orville G. LunkingTitle:
    Vice President and Treasurer




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LASALLE BUSINESS CREDIT, LLC,
as Collateral AgentBy:

/s/
Steve FriedlanderName:
    Steve FriedlanderTitle:
    S.V.P.




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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 Collateral Agent




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NUMBER
    
    PERCENTAGE OFCLASS
    
    
    
    
    
    
    
    
    
    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:
LASALLE BUSINESS CREDIT, LLC,
as Collateral AgentBy:Name:Title:




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Security Agreement Collateral Agent


Joinder Agreement New Pledgor Section 3.5







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-2-



















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-3-




| |               |        |  | 
| | ------------- | ------ |  | 
| | [NEW PLEDGOR] |       
| | By:           |        | 
| |               | Name:  |  | 
| |               | Title: |  | 
|






|    |        |  |  | 
|--- | ------ |  |  | 
|    |       
|By: |        | 
|    | Name:  |  | 
|    | Title: |  | 
|   








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EXHIBIT 4




Copyright Security
Agreement   Assignor Assignors Assignee


WITNESSETH


Security Agreement




Defined Terms Copyrights et
seq.


Grant of Security Interest in Copyright Collateral Pledged Copyright Collateral









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-2-






Security Agreement


Recordation


Termination


Counterparts


Governing Law


INTERCREDITOR AGREEMENT GOVERNS







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-3-











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-4-




| |              |        |  | 
| | ------------ | ------ |  | 
| | [ASSIGNORS]1 |       
| | By:          |        | 
| |              | 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:


owner
    
    registration
number
    
    title of work


Copyright Applications:


owner
    
    title of work







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EXHIBIT 5
  Patent Security Agreement   Assignors Assignee
 WITNESSETH
 Security Agreement
  Defined Terms Patents
 Grant of Security Interest in Patent Collateral Pledged Patent Collateral







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




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-3-




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-4-  [ASSIGNORS]2By:Name:Title: Accepted and Agreed:
LASALLE BUSINESS CREDIT, LLC,
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.




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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




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




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




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-3-




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-4-  [ASSIGNORS]3By:Name:Title: Accepted and Agreed:
LASALLE BUSINESS CREDIT, LLC,
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.




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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




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-2-




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-3-    Signature pages follow




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-4-  
 [______________]
[Address]By:Name:Title: CONSENTED AND AGREED TO:
[______________]
[Address]By:Title:  
 By:Name:Title: