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
    
    
    9ARTICLE 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
    
    
    11SECTION 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
    
    
    17SECTION 4.3. DEFENSE OF CLAIMS; TRANSFERABILITY OF PLEDGED COLLATERAL
    
    
    18
 -i-




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PageSECTION 4.4. OTHER FINANCING STATEMENTS
    
    
    18SECTION 4.5. [INTENTIONALLY OMITTED]
    
    
    18SECTION 4.6. DUE AUTHORIZATION AND ISSUANCE
    
    
    18SECTION 4.7. CONSENTS, ETC.
    
    
    18SECTION 4.8. PLEDGED COLLATERAL
    
    
    18SECTION 4.9. INSURANCE
    
    
    19ARTICLE VCERTAIN PROVISIONS CONCERNING SECURITIES COLLATERALSECTION 5.1. PLEDGE OF ADDITIONAL SECURITIES COLLATERAL
    
    
    19SECTION 5.2. VOTING RIGHTS; DISTRIBUTIONS; ETC.
    
    
    19SECTION 5.3. [INTENTIONALLY OMITTED]
    
    
    20SECTION 5.4. [INTENTIONALLY OMITTED]
    
    
    20SECTION 5.5. CERTAIN AGREEMENTS OF PLEDGORS AS ISSUERS AND HOLDERS OF EQUITY INTERESTS
    
    
    20ARTICLE VICERTAIN PROVISIONS CONCERNING INTELLECTUAL
PROPERTY COLLATERALSECTION 6.1. GRANT OF INTELLECTUAL PROPERTY LICENSE
    
    
    21SECTION 6.2. PROTECTION AND MAINTENANCE OF INTELLECTUAL PROPERTY COLLATERAL
    
    
    21SECTION 6.3. AFTER-ACQUIRED PROPERTY
    
    
    22SECTION 6.4. LITIGATION
    
    
    22ARTICLE VIICERTAIN PROVISIONS CONCERNING RECEIVABLESSECTION 7.1. MAINTENANCE OF RECORDS
    
    
    23SECTION 7.2. MODIFICATION OF TERMS, ETC
    
    
    23SECTION 7.3. COLLECTION
    
    
    23ARTICLE VIIITRANSFERSSECTION 8.1. TRANSFERS OF PLEDGED COLLATERAL
    
    
    24
 -ii-




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PageARTICLE IXREMEDIESSECTION 9.1. REMEDIES
    
    
    24SECTION 9.2. NOTICE OF SALE
    
    
    26SECTION 9.3. WAIVER OF NOTICE AND CLAIMS
    
    
    26SECTION 9.4. CERTAIN SALES OF PLEDGED COLLATERAL
    
    
    26SECTION 9.5. NO WAIVER; CUMULATIVE REMEDIES
    
    
    27SECTION 9.6. CERTAIN ADDITIONAL ACTIONS REGARDING INTELLECTUAL PROPERTY
    
    
    28ARTICLE XAPPLICATION OF PROCEEDSSECTION 10.1. APPLICATION OF PROCEEDS
    
    
    28ARTICLE XIMISCELLANEOUSSECTION 11.1. CONCERNING COLLATERAL AGENT
    
    
    28SECTION 11.2. COLLATERAL AGENT MAY PERFORM; COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
    
    
    29SECTION 11.3. CONTINUING SECURITY INTEREST; ASSIGNMENT
    
    
    30SECTION 11.4. [INTENTIONALLY OMITTED]
    
    
    30SECTION 11.5. MODIFICATION IN WRITING
    
    
    31SECTION 11.6. NOTICES
    
    
    31SECTION 11.7. GOVERNING LAW, CONSENT TO JURISDICTION AND SERVICE OF PROCESS; WAIVER OF JURY
TRIAL
    
    
    31SECTION 11.8. SEVERABILITY OF PROVISIONS
    
    
    31SECTION 11.9. EXECUTION IN COUNTERPARTS
    
    
    31SECTION 11.10. BUSINESS DAYS
    
    
    31SECTION 11.11. NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITION
    
    
    31SECTION 11.12. NO CLAIMS AGAINST COLLATERAL AGENT
    
    
    32SECTION 11.13. NO RELEASE
    
    
    32SECTION 11.14. OBLIGATIONS ABSOLUTE
    
    
    32SECTION 11.15. INTERCREDITOR AGREEMENT GOVERNS
    
    
    33SECTION 11.16. DELIVERY OF COLLATERAL
    
    
    33SECTION 11.17. MORTGAGES
    
    
    33SECTION 11.18. CONFLICTS WITH CANADIAN SECURITY AGREEMENT
    
    
    33SIGNATURES
    
    
    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 Borrower Guarantors Pledgors Pledgor Collateral Agent
 R E C I T A L S:
 Credit Agreement
     A G R E E M E N T:




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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
   Account Debtor
 Agreement
 Bailee Letter Exhibit
7
 Bankruptcy Code
 Borrower
 Collateral Agent
 Cash Management System
 Collateral Support
 Commodity Account Control Agreement
 -2-




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Contracts
 Control
 Control Agreements
 Copyright
 Copyright Security Agreement Exhibit 4
 Credit Agreement Recital A
 Deposit Account Control Agreement
 Deposit Accounts
 Discharge of Revolving Credit Secured Obligations
 Distributions
 -3-




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




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provided however
      provided however
 General Intangibles
 -5-




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Guarantors
 Immaterial Intellectual Property Collateral
 Instruments
 Intellectual Property
 Intellectual Property Collateral
 Intellectual Property Licenses
 -6-




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Intercompany Notes Schedule 11
 Intercreditor Agreement
 Investment Property
 Joinder Agreement Exhibit
3
 Material Intellectual Property Collateral
 Mortgaged Property
 Patent Security Agreement Exhibit 5
 Patents
 Perfection Certificate Section 3.5
 -7-




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Permitted Encumbrances
 Pledge Amendment Section 5.1
 Pledged Collateral Section
2.1
 Pledged Securities Schedule 10
 Pledgor
 Receivables
 Revolving Credit Agents
 Revolving Credit Security Documents
 Securities Account Control Agreement
 Securities Collateral
 -8-




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Trade Secrets and Other Proprietary Rights
 Trademark Security Agreement Exhibit 6
 Trademarks
 UCC provided however
 Interpretation mutatis mutandis
 Resolution of Drafting Ambiguities i.e
 Perfection Certificate
 -9-




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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 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.
  -10-




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Filings
    
 Delivery of Certificated Securities Collateral provided
 -11-




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Perfection of Uncertificated Securities Collateral Exhibit 1 Section 3.1
 -12-




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Financing Statements and Other Filings; Maintenance of Perfected Security Interest Schedule 7
 Other Actions
 Instruments and Tangible Chattel Paper Schedule 11 Schedule 11
 Deposit Accounts Schedule 14
 -13-




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




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




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Commercial Tort Claims Schedule 13
 Landlords Access Agreements/Bailee Letters
 Joinder of Additional Guarantors Section 5.11(e) 5.11(b) (d) (e) Sections 5.11(b) (d) (e) Section 5.11(e)
 -16-




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Supplements; Further Assurances
    Title
 Validity of Security Interest
 -17-




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Schedule 6
 Defense of Claims; Transferability of Pledged Collateral
 Other Financing Statements Schedule 7
 [INTENTIONALLY OMITTED]
 Due Authorization and Issuance
 Consents, etc
 Pledged Collateral
 -18-




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Insurance
   Pledge of Additional Securities Collateral Exhibit 2 Pledge Amendment Section 3.1 Section
3.2
 Voting Rights; Distributions; etc
  provided however
 provided however
 -19-




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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)
 [INTENTIONALLY OMITTED]
 [INTENTIONALLY OMITTED]
 Certain Agreements of Pledgors As Issuers and Holders of Equity Interests
   -20-




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Grant of Intellectual Property License Article IX provided
 Protection and Maintenance of Intellectual Property Collateral Section
6.3
 -21-




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After-Acquired Property Schedules 12(a) 12(b)
 Litigation Section 6.4
 -22-




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Maintenance of Records
 Modification of Terms, etc
 Collection
 -23-




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Transfers of Pledged Collateral
   Remedies
  provided however
  -24-




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Section
9.1(iv)
 Article X
 Article
X
   Section 9.2
 -25-




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Notice of Sale
 Waiver of Notice and Claims Article IX
 Certain Sales of Pledged Collateral
   -26-




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Section 9.4 Section 9.4
 No Waiver; Cumulative Remedies
  -27-




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Certain Additional Actions Regarding Intellectual Property
   Application of Proceeds
   Concerning Collateral Agent
  -28-




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Sections 11.17 11.18
  Collateral Agent May Perform; Collateral Agent Appointed Attorney-in-Fact
 -29-




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provided however Section 11.2 Section 11.2
 Continuing Security Interest; Assignment
 Termination; Release
 -30-




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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
 -31-




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No Claims Against Collateral Agent
 No Release Section 11.13
 Obligations Absolute
     -32-




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INTERCREDITOR AGREEMENT GOVERNS
 Delivery of Collateral
 Mortgages
 Conflicts with Canadian Security Agreement
 concert concert
 -33-




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-34-




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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: S-1




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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 PARTNERSHIP,By:
    4260848 CANADA INC.Its: General PartnerBy:

/s/  Marion BarnesName:
    Marion BarnesTitle:NOVELIS SERVICES LIMITED,By:

/s/  Randal P. MillerName:
    Randal P. MillerTitle: S-2




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

/s/  Christopher Kelly WallName:
    Christopher Kelly WallTitle:
    Managing Director S-3




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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: -2-




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Security Agreement Collateral Agent
 Joinder Agreement New Pledgor Section 3.5




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-2-




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[NEW PLEDGOR]By:Name:Title: AGREED TO AND ACCEPTED:
BANK OF AMERICA, N.A.,
as Collateral AgentBy:Name:Title:  -3-




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EXHIBIT 4
  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
 -2-




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-3-




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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. -4-




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Acknowledgement of ASSIGNOR
 State of
    ))
    
    

    
    
    ss.County of
    )
 , [corporation] [corporation] [Board of Directors] [corporation]
 
   -5-




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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
 -6-




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EXHIBIT 5
  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
 -2-




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-3-




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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. -4-




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Acknowledgement of ASSIGNOR
 State of
    ))
    
    
    ss.County of

    )
 , [corporation] [corporation] [Board of Directors] [corporation]
 
   -5-




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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
 -6-




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EXHIBIT 6
  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
 INTERCREDITOR AGREEMENT GOVERNS
 -2-




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-3-




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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. -4-




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Acknowledgement of ASSIGNOR
 State of
    ))
    
    
    ss.County of
    )
 , [corporation] [corporation] [Board of Directors] [corporation]
 
   -5-




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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
 -6-




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Bailor Borrower Bailee Premises
 Companies Lenders Credit Agreement Agent Collateral




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provided
    8




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Signature pages follow
 9




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[__________]
[Address]By:Name:Title: CONSENTED AND AGREED TO:
[__________]
[Address]By:Name:Title:ACKNOWLEDGED AND ACCEPTED:
BANK OF AMERICA, N.A.
1455 Market Street
San Francisco, CA 94103
Attn: Bridgett Manduk
Fax: 415-503-5011By:Name:Title: