Document:

EX-10.5

Exhibit 10.5

TERM LOAN SECURITY AGREEMENT

          THIS TERM LOAN SECURITY AGREEMENT (this “Agreement”)dated as of January 31, 2007,
among McJunkin Corporation, a West Virginia corporation (the “Borrower”), each of the
Subsidiaries of the Borrower listed on the signature pages hereto (each such entity being a
“Subsidiary Grantor” and, collectively, the “Subsidiary Grantors”; the Subsidiary
Grantors and the Borrower are referred to collectively as the “Grantors”) and Lehman
Commercial Paper Inc., as Collateral Agent (in such capacity, the “Collateral Agent”) under
the Credit Agreement (as defined below) for the benefit of the Secured Parties (as defined below).

W I T N E S S E T H:

          WHEREAS, the Borrower is party to the Term Loan Credit Agreement, dated as of January 31, 2007
(as the same may be amended, restated, supplemented or otherwise modified, refinanced or replaced
from time to time, the “Credit Agreement”), among the Borrower, the lending institutions
from time to time party thereto (the “Lenders”), Lehman Commercial Paper Inc., as
Administrative Agent and as Collateral Agent, pursuant to which (1) the Lenders have severally
agreed to make Loans to the Borrower upon the terms and subject to the conditions set forth
therein, and (2) one or more Lenders or affiliates of Lenders may from time to time enter into
Hedge Agreements with the Borrower (the items in clauses (1) and (2) collectively, the
“Extensions of Credit”);

          WHEREAS, pursuant to the Guarantee, dated as of the date hereof, (as amended, restated,
supplemented or otherwise modified from time to time, the “Guarantee”) each Subsidiary
Grantor party thereto has agreed to unconditionally and irrevocably guarantee, as primary obligor
and not merely as surety, to the Administrative Agent for the benefit of the Secured Parties, the
prompt and complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations;

          WHEREAS, each Subsidiary Grantor is a Subsidiary Guarantor;

          WHEREAS, the proceeds of the Extensions of Credit will be used in part to enable the Borrower
to make valuable transfers to the Subsidiary Grantors in connection with the operation of their
respective businesses;

          WHEREAS, each Grantor acknowledges that it will derive substantial direct and indirect benefit
from the making of the Extensions of Credit; and

          WHEREAS, it is a condition precedent to the obligation of the Lenders to make their respective
Extensions of Credit to the Borrower under the Credit Agreement that the Grantors shall have
executed and delivered this Agreement to the Collateral Agent for the ratable benefit of the
Secured Parties;

          NOW, THEREFORE, in consideration of the premises and to induce the Administrative Agent, the
Collateral Agent, the Syndication Agent, and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective Extensions of Credit to the Borrower under the Credit
Agreement and to induce one or more Lenders or affiliates of

 

 

Lenders to enter into Hedge Agreements with the Borrower, the Grantors hereby agree with the
Collateral Agent for the benefit of the Secured Parties, as follows:

          1. Defined Terms.

          (a) Unless otherwise defined herein, all capitalized terms used herein (including the preamble
and recitals hereto) and not otherwise defined herein shall have the meanings given to them in the
Credit Agreement or, if not defined therein, in the UCC.

          (b) The following terms shall have the following meanings:

          “Agreement” shall have the meaning assigned to such term in the preamble hereto.

          “Borrower” shall have the meaning assigned to such term in the preamble hereto.

          “Collateral” shall have the meaning provided in Section 2 hereof.

          “Collateral Agent” shall have the meaning assigned to such term in the preamble
hereto.

          “Collateral Account” shall mean any collateral account established by the Collateral
Agent as provided in Section 5.1 or Section 5.3.

          “Collateral Agent” shall have the meaning provided in the preamble hereto.

          “Control” shall mean (i) in the case of each Deposit Account, “control,” as such term
is defined in Section 9-104 of the UCC, and (ii) in the case of any Security Entitlement,
“control,” as such term is defined in Section 8-106 of the UCC.

          “Control Agreements” shall mean, collectively, Deposit Account Control Agreements and
the Securities Account Control Agreements.

          “Copyright License” shall mean any written agreement, now or hereafter in effect,
naming any Grantor as licensor or licensee, granting any right to any third party under any
copyright now or hereafter owned by any Grantor (including all Copyrights) or that any Grantor
otherwise has the right to license, or granting any right to any Grantor under any copyright now or
hereafter owned by any third party, and all rights of any Grantor under any such agreement,
including those listed on Schedule I (as such schedule may be amended or supplemented from time to
time).

          “copyrights” shall mean, with respect to any Person, all of the following now owned or
hereafter acquired by such Person: (i) all copyright rights in any work subject to the copyright
laws of the United States, any other country or any group of countries, whether as author,
assignee, transferee or otherwise, and (ii) all registrations and applications for registration of
any such copyright in the United States or any other country, including registrations,

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recordings, supplemental registrations and pending applications for registration in the United
States Copyright Office.

          “Copyrights” shall mean all copyrights now owned or hereafter acquired by any Grantor,
including those listed on Schedule II (as such schedule may be amended or supplemented from time to
time).

          “Credit Agreement” shall have the meaning assigned to such term in the recitals
hereto.

          “Deposit Account Control Agreement” shall mean an agreement that is reasonably
satisfactory to the Collateral Agent establishing Control in favor of the Collateral Agent with
respect to any Deposit Account.

          “Deposit Accounts” shall mean, collectively, with respect to each Pledgor, (i) all
“deposit accounts” as such term is defined in Article 9 of the UCC and in any event shall include
all accounts and sub-accounts relating to any of the foregoing accounts and (ii) all cash, funds,
checks, notes and instruments from time to time on deposit in any of the accounts or sub-accounts
described in clause (i) of this definition.

          “Equipment” shall mean all “equipment,” as such term is defined in Article 9 of the
UCC, now or hereafter owned by any Grantor or to which any Grantor has rights and, in any event,
shall include all machinery, equipment, computers, furnishings, appliances, fixtures, tools and
vehicles (in each case, regardless of whether characterized as equipment under the UCC) now or
hereafter owned by any Grantor or to which any Grantor has rights and any and all Proceeds,
accessions, additions, substitutions and replacements of any of the foregoing, wherever located,
together with all attachments, components, parts, equipment and accessories installed thereon or
affixed thereto; but excluding equipment to the extent it is subject to a Lien permitted by the
Credit Agreement and the terms of the Indebtedness securing such Lien prohibit assignment of, or
granting of a security interest in, such Grantor’s rights and interests therein (other than to the
extent that any such prohibition would be rendered ineffective pursuant to Sections 9-406, 9-407,
9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction
or any other applicable law), provided, that immediately upon the repayment of all
Indebtedness secured by such Lien, such Grantor shall be deemed to have granted a Security Interest
in all the rights and interests with respect to such equipment.

          “Extensions of Credit” shall have the meaning assigned to such term in the recitals
hereto.

          “General Intangibles” shall mean all “general intangibles” as such term is defined in
Article 9 of the UCC, including “payment intangibles” also as such term is defined in Article 9 of
the UCC, and, in any event, including with respect to any Grantor, all contracts, agreements,
instruments and indentures in any form, and portions thereof, to which such Grantor is a party or
under which such Grantor has any right, title or interest or to which such Grantor or any property
of such Grantor is subject, as the same may from time to time be amended, supplemented or otherwise
modified, including (a) all rights of such Grantor to receive moneys due and to become due to it
thereunder or in connection therewith, (b) all rights of such Grantor to receive proceeds

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of any insurance, indemnity, warranty or guarantee with respect thereto, (c) all claims of
such Grantor for damages arising out of any breach of or default thereunder and (d) all rights of
such Grantor to terminate, amend, supplement, modify or exercise rights or options thereunder, to
perform thereunder and to compel performance and otherwise exercise all remedies thereunder, in
each case to the extent the grant by such Grantor of a Security Interest pursuant to this Agreement
in its right, title and interest in any such contract, agreement, instrument or indenture (i) is
not prohibited by such contract, agreement, instrument or indenture without the consent of any
other party thereto, (ii) would not give any other party to any such contract, agreement,
instrument or indenture the right to terminate its obligations thereunder or (iii) is permitted
with consent if all necessary consents to such grant of a Security Interest have been obtained from
the other parties thereto (other than to the extent that any such prohibition referred to in
clauses (i), (ii) and (iii) would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408
or 9-409 of the Uniform Commercial Code (or any successor provision or provisions) of any relevant
jurisdiction or any other applicable law) (it being understood that the foregoing shall not be
deemed to obligate such Grantor to obtain such consents), provided that the foregoing
limitation shall not affect, limit, restrict or impair the grant by such Grantor of a Security
Interest pursuant to this Agreement in any Account or any money or other amounts due or to become
due under any such contract, agreement, instrument or indenture.

          “Grantor” shall have the meaning assigned to such term in the recitals hereto.

          “Guarantee” shall have the meaning assigned to such term in the recitals hereto.

          “Intellectual Property” shall mean all of the following now owned or hereafter
acquired by any Grantor: rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws, including the Trade
Secrets, the Copyrights, the Patents, the Trademarks and the Licenses and all rights to sue at law
or in equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom, in each case to the extent the grant by such Grantor of a Security
Interest pursuant to this Agreement in any such rights, priorities and privileges relating to
intellectual property (i) is not prohibited by any contract, agreement or other instrument
governing such rights, priorities and privileges without the consent of any other party thereto,
(ii) would not give any other party to any such contract, agreement or other instrument the right
to terminate its obligations thereunder or (iii) is permitted with consent if all necessary
consents to such grant of a Security Interest have been obtained from the relevant parties (other
than to the extent that any such prohibition referred to in clauses (i), (ii) and (iii) would be
rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor
provision or provisions) of any relevant jurisdiction or any other applicable law) (it being
understood that the foregoing shall not be deemed to obligate such Grantor to obtain such
consents).

          “Investment Property” shall mean all Securities (whether certificated or
uncertificated), Security Entitlements, Securities Accounts, Commodity Contracts and Commodity
Accounts of any Grantor (other than as pledged pursuant to the Pledge Agreements), whether now or
hereafter acquired by any Grantor, in each case to the extent the grant by a Grantor of a Security
Interest therein pursuant to this Agreement in its right, title and interest in any such Investment
Property (i) is not prohibited by any contract, agreement, instrument or

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indenture governing such Investment Property without the consent of any other party thereto,
(ii) would not give any other party to any such contract, agreement, instrument or indenture the
right to terminate its obligations thereunder or (iii) is permitted with consent if all necessary
consents to such grant of a Security Interest have been obtained from the other parties thereto
(other than to the extent that any such prohibition referred to in clauses (i), (ii) and (iii)
would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any
successor provision or provisions) of any relevant jurisdiction or any other applicable law) (it
being understood that the foregoing shall not be deemed to obligate such Grantor to obtain such
consents).

          “Lender Counterparty” means each Lender or any Affiliate of a Lender that is a
counterparty to a Hedge Agreement (including any Person that ceases to be a Lender (or any
Affiliate thereof) (a) on the date such Lender becomes a party to the Credit Agreement or (b) as of
the date such Hedge Agreement was entered into.

          “License” shall mean any Patent License, Trademark License, Copyright License or other
license or sublicense to which any Grantor is a party.

          “Obligations” shall mean the collective reference to (i) the due and punctual payment
of (x) the principal of and premium, if any, and interest at the applicable rate provided in the
Credit Agreement (including interest at the contract rate applicable upon default accrued or
accruing after the commencement of any proceeding, under the Bankruptcy Code or any applicable
provision of comparable state or foreign law, whether or not such interest is an allowed claim in
such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or
more dates set for prepayment or otherwise, (y) each payment required to be made by any Borrower
under the Credit Agreement, when and as due, including payments in respect of reimbursement of
disbursements, interest thereon and obligations to provide cash collateral, and (z) all other
monetary obligations, including fees, costs, payments for early termination of Hedge Agreements,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise
(including monetary obligations incurred during the pendency of any proceeding under the Bankruptcy
Code or any applicable provision of comparable state or foreign law, whether or not such interest
is an allowed claim in such proceeding), of any Borrower or any other Credit Party to any of the
Secured Parties under the Credit Agreement and any other Credit Documents, (ii) the due and
punctual performance of all covenants, agreements, obligations and liabilities of the Borrower
under or pursuant to the Credit Agreement and the other Credit Documents, (iii) the due and
punctual payment and performance of all the covenants, agreements, obligations and liabilities of
each other Credit Party under or pursuant to this Agreement or the other Credit Documents and (iv)
the due and punctual payment and performance of all obligations of each Credit Party under each
Hedge Agreement that (x) is in effect on the Closing Date with a counterparty that is a Lender or
an affiliate of a Lender as of the Closing Date or (y) is entered into after the Closing Date with
any counterparty that is a Lender or an affiliate of a Lender at the time such Hedge Agreement is
entered into.

          “Patent License” shall mean any written agreement, now or hereafter in effect, naming
any Grantor as licensor or licensee, granting to any third party any right to make, use or sell any
invention on which a patent, now or hereafter owned by any Grantor (including all

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Patents) or that any Grantor otherwise has the right to license, is in existence, or granting
to any Grantor any right to make, use or sell any invention on which a patent, now or hereafter
owned by any third party, is in existence, and all rights of any Grantor under any such agreement,
including those listed on Schedule III (as such schedule may be amended or supplemented from time
to time).

          “patents” shall mean, with respect to any Person, all of the following now owned or
hereafter acquired by such Person: (a) all letters patent of the United States or the equivalent
thereof in any other country or group of countries, all registrations and recordings thereof, and
all applications for letters patent of the United States or the equivalent thereof in any other
country, including registrations, recordings and pending applications in the United States Patent
and Trademark Office or any similar offices in any other country, and (b) all reissues,
continuations, divisions, continuations-in-part, renewals, reexaminations or extensions thereof,
all rights corresponding thereto throughout the world and all inventions and improvements disclosed
or claimed therein, including the right to make, use and/or sell the inventions disclosed or
claimed therein.

          “Patents” shall mean all patents now owned or hereafter acquired by any Grantor,
including those listed on Schedule IV (as such schedule may be amended or supplemented from time to
time).

          “Proceeds” shall mean all “proceeds” as such term is defined in Article 9 of the UCC
and, in any event, shall include with respect to any Grantor, any consideration received from the
sale, exchange, license, lease or other disposition of any asset or property that constitutes
Collateral, any value received as a consequence of the possession of any Collateral and any payment
received from any insurer or other person or entity as a result of the destruction, loss, theft,
damage or other involuntary conversion of whatever nature of any asset or property that constitutes
Collateral, and shall include (a) all cash and negotiable instruments received by or held on behalf
of the Collateral Agent, (b) any claim of any Grantor against any third party for (and the right to
sue and recover for and the rights to damages or profits due or accrued arising out of or in
connection with) (i) past, present or future infringement of any Patent now or hereafter owned by
any Grantor, or licensed under a Patent License, (ii) past, present or future infringement or
dilution of any Trademark now or hereafter owned by any Grantor or licensed under a Trademark
License or injury to the goodwill associated with or symbolized by any Trademark now or hereafter
owned by any Grantor, (iii) past, present or future breach of any License and (iv) past, present or
future infringement of any Copyright now or hereafter owned by any Grantor or licensed under a
Copyright License and (c) any and all other amounts from time to time paid or payable under or in
connection with any of the Collateral.

          “Secured Parties” shall mean, collectively, (i) the Lenders, (ii) the Administrative
Agent, (iii) the Collateral Agent, (iv) the Syndication Agent, (v) each Lender Counterparty party
to a Hedge Agreement the obligations under which constitute Obligations, (vi) the beneficiaries of
each indemnification obligation undertaken by any Credit Party under the Credit Agreement or any
document executed pursuant thereto and (vii) any successors, indorsees, transferees and assigns of
each of the foregoing.

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          “Securities Account Control Agreement” shall mean an agreement that is reasonably
satisfactory to the Collateral Agent establishing Control in favor of the Collateral Agent with
respect to any Securities Account.

          “Security Interest” shall have the meaning provided in Section 2 hereof.

          “Subsidiary Grantor” shall have the meaning assigned to such term in the preamble
hereto.

          “Trade Secrets” shall mean all information used or useful arising from the business
including all goodwill, trade secrets, trade secret rights, know-how, customer lists, processes of
production, ideas, confidential business information, techniques, processes, formulas and all other
proprietary information.

          “Trademark License” shall mean any written agreement, now or hereafter in effect,
naming any Grantor as licensor or licensee, granting to any third party any right to use any
trademark now or hereafter owned by any Grantor (including any Trademark) or that any Grantor
otherwise has the right to license, or granting to any Grantor any right to use any trademark now
or hereafter owned by any third party, and all rights of any Grantor under any such agreement,
including those listed on Schedule V (as such schedule may be amended or supplemented from time to
time).

          “trademarks” shall mean, with respect to any Person, all of the following now owned or
hereafter acquired by such Person: (i) all trademarks, service marks, trade names, corporate
names, company names, business names, fictitious business names, Internet domain names, trade
styles, trade dress, logos, other source or business identifiers, designs and general intangibles
of like nature, now existing or hereafter adopted or acquired, all registrations and recordings
thereof (if any), and all registration and recording applications filed in connection therewith,
including registrations and registration applications in the United States Patent and Trademark
Office or any similar offices in any State of the United States or any other country or any
political subdivision thereof, and all extensions or renewals thereof, (ii) all goodwill associated
therewith or symbolized thereby and (iii) all other assets, rights and interests that uniquely
reflect or embody such goodwill.

          “Trademarks” shall mean all trademarks now owned or hereafter acquired by any Grantor,
including those listed on Schedule VI (as such schedule may be amended or supplemented from time to
time); provided that any “intent to use” Trademark applications for which a “Statement of
Use” or “Amendment to Allege Use” has not been filed (but only until such statement is filed) are
excluded from this definition.

          “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the
State of New York; provided, however, that, in the event that, by reason of mandatory
provisions of law, any of the attachment, perfection or priority of the Collateral Agent’s and the
Secured Parties’ Security Interest in any Collateral is governed by the Uniform Commercial Code as
in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of the

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provisions hereof relating to such attachment, perfection or priority and for purposes of
definitions related to such provisions.

          (c) The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement, and Section, subsection, clause and Schedule references are to this Security
Agreement unless otherwise specified. The words “include,” “includes” and “including” shall be
deemed to be followed by the phrase “without limitation.”

          (d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

          (e) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part
thereof.

          (f) References to “Lenders” in this Agreement shall be deemed to include Affiliates of any
Lender that may from time to time enter into Hedge Agreements with the Borrower.

          2. Grant of Security Interest.

          (a) Each Grantor hereby bargains, sells, conveys, assigns, sets over, mortgages, pledges,
hypothecates and transfers to the Collateral Agent, for the ratable benefit of the Secured Parties,
and grants to the Collateral Agent, for the ratable benefit of the Secured Parties a lien on and
continuing security interest in (the “Security Interest”), all of its right, title and
interest in, to and under all of the following property (other than any property constituting
Non-Core Assets) now owned or at any time hereafter acquired by such Grantor or in which such
Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
the Obligations:

     (i) all Accounts;

     (ii) all Chattel Paper;

     (iii) all Commercial Tort Claims, if any;

     (iv) all Documents;

     (v) all Equipment;

     (vi) all General Intangibles;

     (vii) all Instruments;

     (viii) all Intellectual Property;

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     (ix) all Inventory;

     (x) all Investment Property;

     (xi) all Letters of Credit and Letter-of-Credit Rights;

     (xii) all Money;

     (xiii) all Supporting Obligations;

     (xiv) all Collateral Accounts;

     (xv) all books and records pertaining to the Collateral;

     (xvi) to the extent not otherwise included, all Proceeds and products of any and all of
the foregoing.

          (b) Each Grantor hereby irrevocably authorizes the Collateral Agent and its Affiliates,
counsel and other representatives, at any time and from time to time, to file or record financing
statements, amendments to financing statements and, with notice to the Borrower, other filing or
recording documents or instruments with respect to the Collateral in such form and in such offices
as the Collateral Agent reasonably determines appropriate to perfect the Security Interests of the
Collateral Agent under this Agreement, and such financing statements and amendments may describe
the Collateral covered thereby as “all assets” or “all personal property” or words of similar
effect, whether now owned or hereafter acquired. Each Grantor hereby also authorizes the
Collateral Agent and its Affiliates, counsel and other representatives, at any time and from time
to time, to file continuation statements with respect to previously filed financing statements. A
photographic or other reproduction of this Agreement shall be sufficient as a financing statement
or other filing or recording document or instrument for filing or recording in any jurisdiction to
the Collateral Agent.

          Each Grantor hereby agrees to provide to the Collateral Agent, promptly upon request, any
information reasonably necessary to effectuate the filings or recordings authorized by this Section
2(b).

          The Collateral Agent is further authorized to file with the United States Patent and Trademark
Office or United States Copyright Office (or any successor office or any similar office in any
other country) such documents as may be necessary or advisable for the purpose of perfecting,
confirming, continuing, enforcing or protecting the Security Interests granted by each Grantor
hereunder, without the signature of any Grantor, and naming any Grantor or the Grantors as debtors
and the Collateral Agent, as the case may be, as secured party.

          This Agreement secures the payment of all the Obligations. Without limiting the generality of
the foregoing, this Agreement secures the payment of all amounts that constitute part of the
Obligations and would be owed to the Collateral Agent or the Secured Parties under the Credit
Documents but for the fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving any Grantor.

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          The Security Interests are granted as security only and shall not subject the Collateral Agent
or any other Secured Party to, or in any way alter or modify, any obligation or liability of any
Grantor with respect to or arising out of the Collateral.

          3. Representations and Warranties.

          Each Grantor hereby represents and warrants to the Collateral Agent and each other Secured
Party that:

          3.1 Title; No Other Liens. Except for (a) the Security Interest granted to the
Collateral Agent for the ratable benefit of the Secured Parties pursuant to this Agreement, (b) the
Liens permitted by the Credit Agreement and (c) any Liens securing Indebtedness which is no longer
outstanding or any Liens with respect to commitments to lend which have been terminated, such
Grantor owns each item of the Collateral free and clear of any and all Liens or claims of others.
No security agreement, financing statement or other public notice with respect to all or any part
of the Collateral that evidences a Lien securing any material Indebtedness is on file or of record
in any public office, except such as (i) have been filed in favor of the Collateral Agent for the
ratable benefit of the Secured Parties pursuant to this Agreement or (ii) are permitted by the
Credit Agreement.

          3.2 Perfected First Priority Liens. (a) This Agreement is effective to create in
favor of the Collateral Agent, for its benefit and for the benefit of the Secured Parties, legal,
valid and enforceable Security Interests in the Collateral, subject to the effects of bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and general equitable principles.

          (b) Subject to the limitations set forth in clause (c) of this Section 3.2, the Security
Interests granted pursuant to this Agreement (i) will constitute valid and perfected Security
Interests in the Collateral (as to which perfection may be obtained by the filings or other actions
described in clause (A), (B), or (C) of this paragraph in favor of the Collateral Agent, for the
ratable benefit of the Secured Parties, as collateral security for the Obligations, upon (A) the
filing of all financing statements, in each case, naming each Grantor as “debtor” and the
Collateral Agent as “secured party” and describing the Collateral in the filing offices specified
in Schedule 3.2(b), (B) delivery to Collateral Agent (or its bailee) of all Instruments, Chattel
Paper, Certificated Securities and Negotiable Documents, in each case, properly endorsed for
transfer or in blank, and (C) completion of the filing and recording of fully executed agreements
in the form hereof (or a supplement hereto) and containing a description of all Collateral
constituting Patents and Trademarks in the United States Patent and Trademark Office (or any
successor office) within the three month period (commencing as of the date hereof) or, with respect
to all Collateral constituting Patents and registered Trademarks acquired after the date hereof,
within three months thereafter, and all Collateral constituting registered Copyrights in the United
States Copyright Office (or a successor office) within the one month period (commencing as of the
date hereof) or, with respect to all Collateral constituting Copyrights acquired after the date
hereof, within one month thereafter pursuant to 35 USC § 261, and 15 USC § 1060, or 17 USC § 205
and the regulations thereunder, and otherwise as may be required pursuant to the laws of any other
necessary jurisdiction to the extent that a security interest may be perfected by such filings and
recordings, and (ii) are prior to all other Liens on the Collateral other than Liens permitted
pursuant to Section 10.2 of the Credit Agreement.

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          (c) Notwithstanding anything to the contrary herein, no Grantor shall be required to perfect
the Security Interests granted by this Agreement (including Security Interests in cash, cash
accounts and Investment Property) by any means other than (i) filings pursuant to the UCC of the
relevant state(s), (ii) filings approved by United States government offices with respect to
Intellectual Property or (iii) delivery to the Collateral Agent (or its bailee) to be held in its
possession of all Collateral consisting of Instruments, Certificated Securities or Negotiable
Documents.

          (d) It is understood and agreed that the Security Interests in cash and Investment Property
created hereunder shall not prevent the Grantors from using such assets in the ordinary course of
their respective businesses, subject to the provisions of the Control Agreements with respect to
such cash and Investment Property.

          4. Covenants.

          Each Grantor hereby covenants and agrees with the Collateral Agent and the Secured Parties
that, from and after the date of this Agreement until the Obligations under the Credit Documents
are paid in full and the Commitments are terminated:

          4.1 Maintenance of Perfected Security Interest; Further Documentation. (a) Such
Grantor shall maintain the Security Interest created by this Agreement as a perfected Security
Interest having at least the priority described in Section 3.1 and shall defend such Security
Interest against the claims and demands of all Persons whomsoever, in each case subject to Section
3.2(c).

          (b) Such Grantor will furnish to the Collateral Agent and the Lenders from time to time
statements and schedules further identifying and describing the assets and property of such Grantor
and such other reports in connection therewith as the Collateral Agent may reasonably request. In
addition, within 30 days after the end of each calendar quarter, such Grantor will deliver to the
Collateral Agent a written supplement substantially in the form of Annex A hereto with
respect to any additional Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and
Trademark Licenses acquired by such Grantor after the date hereof, all in reasonable detail.

          (c) Subject to clause (d) below and Section 3.2(c), each Grantor agrees that at any time and
from time to time, at the expense of such Grantor, it will execute any and all further documents,
financing statements, agreements and instruments, and take all such further actions (including the
filing and recording of financing statements and other documents, including all applicable
documents required under Section 3.2(b)(C)), which may be required under any applicable law, or
which the Collateral Agent or the Required Lenders may reasonably request, in order (i) to grant,
preserve, protect and perfect the validity and priority of the Security Interests created or
intended to be created hereby or (ii) to enable the Collateral Agent to exercise and enforce its
rights and remedies hereunder with respect to any Collateral, including the filing of any financing
or continuation statements under the UCC in effect in any jurisdiction with respect to the Security
Interests created hereby and all applicable documents required under Section 3.2(b)(C), all at the
expense of such Grantor.

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          (d) Notwithstanding anything in this Section 4.1 to the contrary, (i) with respect to any
assets acquired by such Grantor after the date hereof that are required by the Credit Agreement to
be subject to the Lien created hereby or (ii) with respect to any Person that, subsequent to the
date hereof, becomes a U.S. Subsidiary that is required by the Credit Agreement to become a party
hereto, the relevant Grantor after the acquisition or creation thereof shall promptly take all
actions required by the Credit Agreement or this Section 4.1.

          4.2 Changes in Locations, Name, etc. Each Grantor will furnish to the Collateral
Agent prompt written notice of any change (i) in its legal name, (ii) in its jurisdiction of
organization or location for purposes of the UCC, (iii) in its identity or type of organization or
corporate structure or (iv) in its Federal Taxpayer Identification Number or organizational
identification number. Each Grantor agrees promptly to provide the Collateral Agent with
certified organizational documents reflecting any of the changes described in the first sentence
of this paragraph. Each Grantor also agrees promptly to notify the Collateral Agent if any
material portion of the Collateral is damaged or destroyed.

          4.3 Notices. Each Grantor will advise the Collateral Agent and the Lenders promptly,
in reasonable detail, of any Lien of which it has knowledge (other than the Security Interests
created hereby or Liens permitted under the Credit Agreement) on any of the Collateral which would
adversely affect, in any material respect, the ability of the Collateral Agent to exercise any of
its remedies hereunder.

          5. Remedial Provisions.

          5.1 Certain Matters Relating to Accounts. (a) At any time after the occurrence and
during the continuance of an Event of Default and after giving reasonable notice to the Borrower
and any other relevant Grantor, the Administrative Agent shall have the right, but not the
obligation, to instruct the Collateral Agent to (and upon such instruction, the Collateral Agent
shall) make test verifications of the Accounts in any manner and through any medium that such
Agent reasonably considers advisable, and each Grantor shall furnish all such assistance and
information as such Agent may require in connection with such test verifications. Such Agent
shall have the absolute right to share any information it gains from such inspection or
verification with any Secured Party.

          (b) The Collateral Agent hereby authorizes each Grantor to collect such Grantor’s Accounts and
the Collateral Agent may curtail or terminate said authority at any time after the occurrence and
during the continuance of an Event of Default. If required in writing by the Collateral Agent at
any time after the occurrence and during the continuance of an Event of Default, any payments of
Accounts, when collected by any Grantor, (i) shall be forthwith (and, in any event, within two
Business Days) deposited by such Grantor in the exact form received, duly endorsed by such Grantor
to the Collateral Agent if required, in a Collateral Account maintained under the sole dominion and
control of and on terms and conditions reasonably satisfactory to the Collateral Agent, subject to
withdrawal by the Collateral Agent for the account of the Secured Parties only as provided in
Section 5.5, and (ii) until so turned over, shall be held by such Grantor in trust for the
Collateral Agent and the Secured Parties, segregated from other funds of such Grantor. Each such
deposit of Proceeds of Accounts shall be accompanied by a

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report identifying in reasonable detail the nature and source of the payments included in the
deposit.

          (c) At the Collateral Agent’s request at any time after the occurrence and during the
continuance of an Event of Default, each Grantor shall deliver to the Collateral Agent all original
and other documents evidencing, and relating to, the agreements and transactions which gave rise to
the Accounts, including all original orders, invoices and shipping receipts.

          (d) Upon the occurrence and during the continuance of an Event of Default, a Grantor shall not
grant any extension of the time of payment of any of the Accounts, compromise, compound or settle
the same for less than the full amount thereof, release, wholly or partly, any person liable for
the payment thereof, or allow any credit or discount whatsoever thereon if the Collateral Agent
shall have instructed the Grantors not to grant or make any such extension, credit, discount,
compromise or settlement under any circumstances during the continuance of such Event of Default.

          (e) At the direction of the Collateral Agent, upon the occurrence and during the continuance
of an Event of Default, each Grantor shall grant to the Collateral Agent to the extent assignable,
an irrevocable, non-exclusive, fully paid-up, royalty-free, worldwide license to use, assign,
license or sublicense any of the Intellectual Property now owned or hereafter acquired by such
Grantor. Such license shall include access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or printout thereof.

          5.2 Communications with Credit Parties; Grantors Remain Liable. (a) The Collateral
Agent in its own name or in the name of others may at any time after the occurrence and during the
continuance of an Event of Default, after giving reasonable notice to the relevant Grantor of its
intent to do so, communicate with obligors under the Accounts to verify with them to the
Collateral Agent’s satisfaction the existence, amount and terms of any Accounts. The Collateral
Agent shall have the absolute right to share any information it gains from such inspection or
verification with any Secured Party.

          (b) Upon the written request of the Collateral Agent at any time after the occurrence and
during the continuance of an Event of Default, each Grantor shall notify obligors on the Accounts
that the Accounts have been assigned to the Collateral Agent for the ratable benefit of the Secured
Parties and that payments in respect thereof shall be made directly to the Collateral Agent.

          (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Accounts to observe and perform all the conditions and obligations to be observed and
performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto.
Neither the Collateral Agent nor any Secured Party shall have any obligation or liability under any
Account (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the
receipt by the Collateral Agent or any Secured Party of any payment relating thereto, nor shall the
Collateral Agent or any Secured Party be obligated in any manner to perform any of the obligations
of any Grantor under or pursuant to any Account (or any agreement giving rise thereto), to make any
payment, to make any inquiry as to the

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nature or the sufficiency of any payment received by it or as to the sufficiency of any
performance by any party thereunder, to present or file any claim, to take any action to enforce
any performance or to collect the payment of any amounts which may have been assigned to it or to
which it may be entitled at any time or times.

          5.3 Proceeds to be Turned Over To Collateral Agent. In addition to the rights of the
Collateral Agent and the Secured Parties specified in Section 5.1 with respect to payments of
Accounts, if an Event of Default shall occur and be continuing and the Collateral Agent so
requires by notice in writing to the relevant Grantor (it being understood that the exercise of
remedies by the Secured Parties in connection with an Event of Default under Section 11.5 of the
Credit Agreement shall be deemed to constitute a request by the Collateral Agent for the purposes
of this sentence and in such circumstances, no such written notice shall be required), all
Proceeds received by any Grantor consisting of cash, checks and other near-cash items shall be
held by such Grantor in trust for the Collateral Agent and the Secured Parties, segregated from
other funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Collateral Agent in the exact form received by such Grantor (duly endorsed by such Grantor to
the Collateral Agent, if required). All Proceeds received by the Collateral Agent hereunder shall
be held by the Collateral Agent in a Collateral Account maintained under its dominion and control
and on terms and conditions reasonably satisfactory to the Collateral Agent. All Proceeds while
held by the Collateral Agent in a Collateral Account (or by such Grantor in trust for the
Collateral Agent and the Secured Parties) shall continue to be held as collateral security for all
the Obligations and shall not constitute payment thereof until applied as provided in Section 5.4.

          5.4 Application of Proceeds. The Collateral Agent shall apply the proceeds of any
collection or sale of the Collateral as well as any Collateral consisting of cash, at any time
after receipt as follows:

          (a) first, to the payment of all reasonable and documented costs and expenses incurred by the
Collateral Agent in connection with such collection or sale or otherwise in connection with this
Agreement, the other Credit Documents or any of the Obligations, including all court costs and the
reasonable fees and expenses of its agents and legal counsel, the repayment of all advances made by
the Collateral Agent hereunder or under any other Credit Document on behalf of any Grantor and any
other reasonable and documented costs or expenses incurred in connection with the exercise of any
right or remedy hereunder or under any other Credit Document;

          (b) second, to the Secured Parties, an amount equal to all Obligations owing to them on the
date of any distribution, and, if such moneys shall be insufficient to pay such amounts in full,
then ratably (without priority of any one over any other) to such Secured Parties in proportion to
the unpaid amounts thereof; and

          (c) third, any surplus then remaining shall be paid to the Grantors or their successors or
assigns or to whomsoever may be lawfully entitled to receive the same or as a court of competent
jurisdiction may direct.

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               Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale
granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the
officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Collateral Agent or such officer or
be answerable in any way for the misapplication thereof.

          5.5 Code and Other Remedies. If an Event of Default shall occur and be continuing,
the Collateral Agent may exercise in respect of the Collateral, in addition to all other rights
and remedies provided for herein or otherwise available to it, all the rights and remedies of a
secured party upon default under the UCC or any other applicable law and also may with notice to
the relevant Grantor, sell the Collateral or any part thereof in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of the Collateral Agent or any
Lender or elsewhere for cash or on credit or for future delivery at such price or prices and upon
such other terms as are commercially reasonable irrespective of the impact of any such sales on
the market price of the Collateral. The Collateral Agent shall be authorized at any such sale (if
it deems it advisable to do so) to restrict the prospective bidders or purchasers of Collateral to
Persons who will represent and agree that they are purchasing the Collateral for their own account
for investment and not with a view to the distribution or sale thereof, and, upon consummation of
any such sale, the Collateral Agent shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. Each purchaser at any such sale shall
hold the property sold absolutely free from any claim or right on the part of any Grantor, and
each Grantor hereby waives (to the extent permitted by law) all rights of redemption, stay and/or
appraisal that it now has or may at any time in the future have under any rule of law or statute
now existing or hereafter enacted. The Collateral Agent and any Secured Party shall have the
right upon any such public sale, and, to the extent permitted by law, upon any such private sale,
to purchase the whole or any part of the Collateral so sold, and the Collateral Agent or such
Secured Party may, subject to (x) the satisfaction in full in cash of all payments due pursuant to
Section 5.4(a) hereof and (y) the satisfaction of the Obligations in accordance with the
priorities set forth in Section 5.4 hereof, pay the purchase price by crediting the amount thereof
against the Obligations. Each Grantor agrees that, to the extent notice of sale shall be required
by law, at least ten days’ notice to such Grantor of the time and place of any public sale or the
time after which any private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Collateral Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. To the extent permitted by
law, each Grantor hereby waives any claim against the Collateral Agent arising by reason of the
fact that the price at which any Collateral may have been sold at such a private sale was less
than the price that might have been obtained at a public sale, even if the Collateral Agent
accepts the first offer received and does not offer such Collateral to more than one offeree.
Each Grantor further agrees, at the Collateral Agent’s request, to assemble the Collateral and
make it available to the Collateral Agent, at places which the Collateral Agent shall reasonably
select, whether at such Grantor’s premises or elsewhere. The Collateral Agent shall apply the net
proceeds of any action taken by it pursuant to this Section 5.5 in accordance with the provisions
of Section 5.4.

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          5.6 Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds
of any sale or other disposition of the Collateral are insufficient to pay its Obligations and the
fees and disbursements of any attorneys employed by the Collateral Agent or any Secured Party to
collect such deficiency.

          5.7 Amendments, etc. with Respect to the Obligations; Waiver of Rights. Each Grantor
shall remain obligated hereunder notwithstanding that, without any reservation of rights against
any Grantor and without notice to or further assent by any Grantor, (a) any demand for payment of
any of the Obligations made by the Collateral Agent or any other Secured Party may be rescinded by
such party and any of the Obligations continued, (b) the Obligations, or the liability of any
other party upon or for any part thereof, or any collateral security or guarantee therefor or
right of offset with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered or released by the
Collateral Agent or any other Secured Party, (c) the Credit Agreement, the other Credit Documents,
the Letters of Credit and any other documents executed and delivered in connection therewith and
the Hedge Agreements and any other documents executed and delivered in connection therewith and
any documents entered into with the applicable Administrative Agent or the Collateral Agent or any
of its respective affiliates in connection with treasury, depositary or cash management services
or in connection with any automated clearinghouse transfer of funds may be amended, modified,
supplemented or terminated, in whole or in part, as the applicable Administrative Agent (or the
Required Lenders, as the case may be, or, in the case of any Hedge Agreement or documents entered
into with the applicable Administrative Agent or any of its respective affiliates in connection
with treasury, depositary or cash management services or in connection with any automated
clearinghouse transfer of funds, the party thereto) may deem advisable from time to time, and (d)
any collateral security, guarantee or right of offset at any time held by the Collateral Agent or
any other Secured Party for the payment of the Obligations may be sold, exchanged, waived,
surrendered or released. Neither the Collateral Agent nor any other Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it as security for
the Obligations or for this Agreement or any property subject thereto. When making any demand
hereunder against any Grantor, the Collateral Agent or any other Secured Party may, but shall be
under no obligation to, make a similar demand on any Borrower or any Grantor or any other person,
and any failure by the Collateral Agent or any other Secured Party to make any such demand or to
collect any payments from any Borrower or any Grantor or any other person or any release of any
Borrower or any Grantor or any other person shall not relieve any Grantor in respect of which a
demand or collection is not made or any Grantor not so released of its several obligations or
liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied,
or as a matter of law, of the Collateral Agent or any other Secured Party against any Grantor.
For the purposes hereof “demand” shall include the commencement and continuance of any legal
proceedings.

          5.8 Access Rights on Mortgaged Properties. The Grantors hereby agree with the
Collateral Agent that, at any time during the continuance of an Event of Default and after notice
of such action to the Borrower, the Revolving Credit Collateral Agent (as defined in the
Intercreditor Agreement) shall have access, during the Access Period (as defined in the
Intercreditor Agreement), and each such Grantor that owns any of the Mortgaged Premises has
granted a non-exclusive easement in gross over its property to permit the uses by Revolving

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Credit Collateral Agent (as defined in the Intercreditor Agreement) contemplated by
Section 3.3 of the Intercreditor Agreement. The Collateral Agent hereby consents to such
easement.

          6. The Collateral Agent.

          6.1 Collateral Agent’s Appointment as Attorneys-in-Fact, etc. (a) Each Grantor
hereby appoints, which appointment is irrevocable and coupled with an interest, effective upon and
during the occurrence of an Event of Default, the Collateral Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in the name of such
Grantor or otherwise, for the purpose of carrying out the terms of this Agreement, to take any and
all appropriate action and to execute any and all documents and instruments which may be necessary
or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of
the foregoing, each Grantor hereby gives the Collateral Agent the power and right, on behalf of
such Grantor, either in the Collateral Agent’s name or in the name of such Grantor or otherwise,
without assent by such Grantor, to do any or all of the following, in each case after and during
the occurrence of an Event of Default and after written notice by the Collateral Agent of its
intent to do so:

     (i) take possession of and endorse and collect any checks, drafts, notes, acceptances
or other instruments for the payment of moneys due under any Account or with respect to any
other Collateral and file any claim or take any other action or proceeding in any court of
law or equity or otherwise deemed appropriate by the Collateral Agent for the purpose of
collecting any and all such moneys due under any Account or with respect to any other
Collateral whenever payable;

     (ii) in the case of any Intellectual Property, execute and deliver, and have recorded,
any and all agreements, instruments, documents and papers as the Collateral Agent may
request to evidence the Collateral Agent’s and the Secured Parties’ Security Interest in
such Intellectual Property and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby;

     (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral;

     (iv) execute, in connection with any sale provided for in Section 5.5, any
endorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral;

     (v) obtain and adjust insurance required to be maintained by such Grantor or paid to
the Collateral Agent pursuant to Section 9.3 of the Credit Agreement;

     (vi) direct any party liable for any payment under any of the Collateral to make
payment of any and all moneys due or to become due thereunder directly to the Collateral
Agent or as the Collateral Agent shall direct;

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     (vii) ask or demand for, collect and receive payment of and receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of or arising
out of any Collateral;

     (viii) sign and endorse any invoices, freight or express bills, bills of lading,
storage or warehouse receipts, drafts against debtors, assignments, verifications, notices
and other documents in connection with any of the Collateral;

     (ix) commence and prosecute any suits, actions or proceedings at law or in equity in
any court of competent jurisdiction to collect the Collateral or any portion thereof and to
enforce any other right in respect of any Collateral;

     (x) defend any suit, action or proceeding brought against such Grantor with respect to
any Collateral (with such Grantor’s consent (not to be unreasonably withheld or delayed) to
the extent such action or its resolution could materially affect such Grantor or any of its
affiliates in any manner other than with respect to its continuing rights in such
Collateral);

     (xi) settle, compromise or adjust any such suit, action or proceeding and, in
connection therewith, give such discharges or releases as the Collateral Agent may deem
appropriate (with such Grantor’s consent (not to be unreasonably withheld or delayed) to the
extent such action or its resolution could materially affect such Grantor or any of its
affiliates in any manner other than with respect to its continuing rights in such
Collateral);

     (xii) assign any Copyright, Patent or Trademark (along with the goodwill of the
business to which any such Copyright, Patent or Trademark pertains), throughout the world
for such term or terms, on such conditions, and in such manner, as the Collateral Agent
shall in its sole discretion determine; and

     (xiii) generally, sell, transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the Collateral
Agent were the absolute owner thereof for all purposes, and do, at the Collateral Agent’s
option and such Grantor’s expense, at any time, or from time to time, all acts and things
that the Collateral Agent deems necessary to protect, preserve or realize upon the
Collateral and the Collateral Agent’s and the Secured Parties’ Security Interests therein
and to effect the intent of this Agreement, all as fully and effectively as such Grantor
might do.

          Anything in this Section 6.1(a) to the contrary notwithstanding, the Collateral Agent agrees
that it will not exercise any rights under the power of attorney provided for in this Section
6.1(a) unless an Event of Default shall have occurred and be continuing.

          (b) If any Grantor fails to perform or comply with any of its agreements contained herein, the
Collateral Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

          (c) The expenses of the Collateral Agent incurred in connection with actions undertaken as
provided in this Section 6.1, together with interest thereon at a rate per annum

18

 

equal to the highest rate per annum at which interest would then be payable on any category of
past due ABR Loans under the Credit Agreement, from the date of payment by the Collateral Agent to
the date reimbursed by the relevant Grantor, shall be payable by such Grantor to the Collateral
Agent on demand.

          (d) Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the Security Interests
created hereby are released.

          6.2 Duty of Collateral Agent. The Collateral Agent’s sole duty with respect to the
custody, safekeeping and physical preservation of the Collateral in its possession, under Section
9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent
deals with similar property for its own account. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in its possession if
such Collateral is accorded treatment substantially equal to that which the Collateral Agent
accords its own property. Neither the Collateral Agent, any Secured Party nor any of their
respective officers, directors, employees or agents shall be liable for failure to demand, collect
or realize upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or any
other Person or to take any other action whatsoever with regard to the Collateral or any part
thereof. The powers conferred on the Collateral Agent and the Secured Parties hereunder are
solely to protect the Collateral Agent’s and the Secured Parties’ interests in the Collateral and
shall not impose any duty upon the Collateral Agent or any Secured Party to exercise any such
powers. The Collateral Agent and the Secured Parties shall be accountable only for amounts that
they actually receive as a result of the exercise of such powers, and neither they nor any of
their officers, directors, employees or agents shall be responsible to any Grantor for any act or
failure to act hereunder, except for their own gross negligence or willful misconduct.

          6.3 Authority of Collateral Agent. Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with respect to any action taken by
the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting
right, request, judgment or other right or remedy provided for herein or resulting or arising out
of this Agreement shall, as between the Collateral Agent and the Secured Parties, be governed by
the Credit Agreement, and by such other agreements with respect thereto as may exist from time to
time among them, but, as between the Collateral Agent and the Grantors, the Collateral Agent shall
be conclusively presumed to be acting as agent for the applicable Secured Parties with full and
valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

          6.4 Security Interest Absolute. All rights of the Collateral Agent hereunder, the
Security Interest, and all obligations of the Grantors hereunder shall be absolute and
unconditional.

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          6.5 Continuing Security Interest; Assignments Under the Credit Agreement; Release.
(a) This Agreement shall remain in full force and effect and be binding in accordance with and to
the extent of its terms upon each Grantor and the successors and assigns thereof and shall inure
to the benefit of the Collateral Agent and the other Secured Parties and their respective
successors, indorsees, transferees and assigns until all Obligations under the Credit Documents
(other than any contingent indemnity obligations not then due) and the obligations of each Grantor
under this Agreement shall have been satisfied by payment in full, the Commitments shall be
terminated and no Letters of Credit shall be outstanding, notwithstanding that from time to time
during the term of the Credit Agreement and any Hedge Agreement the Credit Parties may be free
from any Obligations.

          (b) A Subsidiary Grantor shall automatically be released from its obligations hereunder and
the Security Interest in the Collateral of such Subsidiary Grantor shall be automatically released
upon the consummation of any transaction permitted under the Credit Agreement as a result of which
such Subsidiary Grantor ceases to be a Subsidiary Guarantor.

          (c) Upon any sale or other transfer by any Grantor of any Collateral that is permitted under
the Credit Agreement or upon the effectiveness of any written consent to the release of the
Security Interest granted hereby in any Collateral pursuant to Section 14.1 of the Credit
Agreement, the Security Interest in such Collateral shall be automatically released and such
Collateral sold free and clear of the Lien and Security Interests created hereby.

          (d) In connection with any termination or release pursuant to paragraph (a), (b) or (c), the
Collateral Agent shall execute and deliver to any Grantor, at such Grantor’s expense, all documents
that such Grantor shall reasonably request to evidence such termination or release. Any execution
and delivery of documents pursuant to this Section 6.5 shall be without recourse to or warranty by
the Collateral Agent.

          6.6 Reinstatement. Each Grantor further agrees that, if any payment made by any
Credit Party or other Person and applied to the Obligations is at any time annulled, avoided, set
aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to
be refunded or repaid, or the proceeds of Collateral are required to be returned by any Secured
Party to such Credit Party, its estate, trustee, receiver or any other party, including any
Grantor, under any bankruptcy law, state or federal law, common law or equitable cause, then, to
the extent of such payment or repayment, any Lien or other Collateral securing such liability
shall be and remain in full force and effect, as fully as if such payment had never been made or,
if prior thereto the Lien granted hereby or other Collateral securing such liability hereunder
shall have been released or terminated by virtue of such cancellation or surrender), such Lien or
other Collateral shall be reinstated in full force and effect, and such prior cancellation or
surrender shall not diminish, release, discharge, impair or otherwise affect any Lien or other
Collateral securing the obligations of any Grantor in respect of the amount of such payment.

          7. Collateral Agent As Agent.

          (a) Lehman Commercial Paper Inc. has been appointed to act as the Collateral Agent under the
Credit Agreement, by the Lenders under the Credit Agreement and, by their

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acceptance of the benefits hereof, the other Secured Parties. The Collateral Agent shall be
obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or
refrain from exercising any rights, and to take or refrain from taking any action (including the
release or substitution of Collateral), solely in accordance with this Agreement and the Credit
Agreement, provided that the Collateral Agent shall exercise, or refrain from exercising,
any remedies provided for in Section 5 in accordance with the instructions of Required Lenders. In
furtherance of the foregoing provisions of this Section 7(a), each Secured Party, by its acceptance
of the benefits hereof, agrees that it shall have no right individually to realize upon any of the
Collateral hereunder, it being understood and agreed by such Secured Party that all rights and
remedies hereunder may be exercised solely by the Collateral Agent for the ratable benefit of the
applicable Lenders and Secured Parties in accordance with the terms of this Section 7(a).

          (b) The Collateral Agent shall at all times be the same Person that is the Collateral Agent
under the Credit Agreement. Written notice of resignation by the Collateral Agent pursuant to
Section 13.9 of the Credit Agreement shall also constitute notice of resignation as Collateral
Agent under this Agreement; removal of the Collateral Agent shall also constitute removal under
this Agreement; and appointment of a Collateral Agent pursuant to Section 13.9 of the Credit
Agreement shall also constitute appointment of a successor Collateral Agent under this Agreement.
Upon the acceptance of any appointment as Collateral Agent under Section 13.9 of the Credit
Agreement by a successor Collateral Agent, that successor Collateral Agent shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the retiring or removed
Collateral Agent under this Agreement, and the retiring or removed Collateral Agent under this
Agreement shall promptly (i) transfer to such successor Collateral Agent all sums, securities and
other items of Collateral held hereunder, together with all records and other documents necessary
or appropriate in connection with the performance of the duties of the successor Collateral Agent
under this Agreement, and (ii) execute and deliver to such successor Collateral Agent or otherwise
authorize the filing of such amendments to financing statements and take such other actions, as may
be necessary or appropriate in connection with the assignment to such successor Collateral Agent of
the Security Interests created hereunder, whereupon such retiring or removed Collateral Agent shall
be discharged from its duties and obligations under this Agreement. After any retiring or removed
Collateral Agent’s resignation or removal hereunder as Collateral Agent, the provisions of this
Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it under
this Agreement while it was Collateral Agent hereunder.

          (c) The Collateral Agent shall not be deemed to have any duty whatsoever with respect to any
Secured Party that is a counterparty to a Hedge Agreement the obligations under which constitute
Obligations, unless it shall have received written notice in form and substance satisfactory to the
Collateral Agent from a Grantor or any such Secured Party as to the existence and terms of the
applicable Hedge Agreement.

          8. Miscellaneous.

          8.1 Amendments in Writing. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except by a written

21

 

instrument executed by the affected Grantor and the Collateral Agent in accordance with
Section 14.1 of the Credit Agreement.

          8.2 Notices. All notices, requests and demands pursuant hereto shall be made in
accordance with Section 14.2 of the Credit Agreement. All communications and notices hereunder to
any Subsidiary Grantor shall be given to it in care of the Borrower at the Borrower’s address set
forth in Section 14.2 of the Credit Agreement.

          8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the Collateral
Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section
8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the
terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of
the Collateral Agent or any other Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Collateral Agent or any other Secured Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that
the Collateral Agent or such other Secured Party would otherwise have on any future occasion. The
rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by law.

          8.4 Enforcement Expenses; Indemnification. (a) Each Grantor agrees to pay any and
all expenses (including all reasonable fees and disbursements of counsel) that may be paid or
incurred by any Secured Party in enforcing, or obtaining advice of counsel in respect of, any
rights with respect to, or collecting, any or all of the Obligations and/or enforcing any rights
with respect to, or collecting against, such Grantor under this Agreement.

          (b) Each Grantor agrees to pay, and to save the Collateral Agent and the Secured Parties
harmless from, any and all liabilities with respect to, or resulting from any delay in paying, any
and all stamp, excise, sales or other taxes which may be payable or determined to be payable with
respect to any of the Collateral or in connection with any of the transactions contemplated by this
Agreement.

          (c) Each Grantor agrees to pay, and to save the Collateral Agent and the Secured Parties
harmless from, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to
the execution, delivery, enforcement, performance and administration of this Agreement to the
extent a Borrower would be required to do so pursuant to Section 12.5 of the Credit Agreement.

          (d) The agreements in this Section 8.4 shall survive repayment of the Obligations and all
other amounts payable under the Credit Agreement and the other Credit Documents.

22

 

          8.5 Successors and Assigns. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the Collateral Agent except
pursuant to a transaction permitted by the Credit Agreement.

          8.6 Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including by facsimile or other electronic
transmission), and all of said counterparts taken together shall be deemed to constitute one and
the same instrument. A set of the copies of this Agreement signed by all the parties shall be
lodged with the Collateral Agent and the Borrower.

          8.7 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

          8.8 Section Headings. The Section headings used in this Agreement are for
convenience of reference only and are not to affect the construction hereof or be taken into
consideration in the interpretation hereof.

          8.9 Integration. This Agreement together with the other Credit Documents represents
the agreement of each of the Grantors with respect to the subject matter hereof and there are no
promises, undertakings, representations or warranties by the Collateral Agent or any other Secured
Party relative to the subject matter hereof not expressly set forth or referred to herein or in
the other Credit Documents.

          8.10 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

          8.11 Submission To Jurisdiction Waivers. Each party hereto hereby irrevocably and
unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the other Credit Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York, the courts of the United States of America for the
Southern District of New York, and appellate courts from any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such

23

 

action or proceeding in any such court or that such action or proceeding was brought in
an inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to such Person at its address referred to in Section 8.2 or at such
other address of which such Person shall have been notified pursuant thereto;

     (d) agrees that nothing herein shall affect the right of any other party hereto (or any
Secured Party) to effect service of process in any other manner permitted by law or shall
limit the right of any party hereto (or any Secured Party) to sue in any other jurisdiction;
and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section 8.11 any special,
exemplary, punitive or consequential damages.

          8.12 Acknowledgments. Each party hereto hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Credit Documents to which it is a party;

     (b) neither the Collateral Agent nor any other Secured Party has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with this Agreement
or any of the other Credit Documents, and the relationship between the Grantors, on the one
hand, and the Collateral Agent and the other Secured Parties, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

     (c) no joint venture is created hereby or by the other Credit Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders and any other
Secured Party or among the Grantors and the Lenders and any other Secured Party.

          8.13 Additional Grantors. Each Subsidiary of the Borrower that is required to become
a party to this Agreement pursuant to Section 9.11 of the Credit Agreement shall become a Grantor,
with the same force and effect as if originally named as a Grantor herein, for all purposes of
this Agreement upon execution and delivery by such Subsidiary of a written supplement
substantially in the form of Annex B hereto. The execution and delivery of any instrument
adding an additional Grantor as a party to this Agreement shall not require the consent of any
other Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in
full force and effect notwithstanding the addition of any new Grantor as a party to this
Agreement.

24

 

          8.14 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

          9. Intercreditor Agreement

          9.1 Intercreditor Agreement. Notwithstanding anything herein to the contrary, the
lien and security interest granted to the Collateral Agent pursuant to this Agreement and the
exercise of any right or remedy by the Collateral Agent hereunder are subject to the provisions of
the Intercreditor Agreement, dated as of January 31, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Intercreditor Agreement”), among the Borrower,
Lehman Commercial Paper Inc., as Administrative Agent and as Collateral Agent, and certain other
persons which may be or become parties thereto, or become bound thereto from time to time. In the
event of any conflict between the terms of the Intercreditor Agreement and this Agreement, the
terms of the Intercreditor Agreement shall govern and control.

[Signature Pages Follow]

25

 

          IN
WITNESS WHEREOF, each of the undersigned has caused this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 

	 	 	 	 	 
	 	MCJUNKIN CORPORATION, as Grantor

 

 	 
	 	By:  	/s/ JAMES
F. UNDERHILL	 
	 	 	Name:  	James F. Underhill	 
	 	 	Title:  	Chief Financial Officer	 

	 	 	 	 	 

	 	 	 	 	 
	 	MCJUNKIN APPALACHIAN OILFIELD

COMPANY, as Grantor

 	 
	 	By:  	/s/ DAVID
FOX III	 
	 	 	Name:  	David Fox III	 
	 	 	Title:  	Executive Vice President	 

	 	 	 	 	 

	 	 	 	 	 
	 	MCJUNKIN NIGERIA LIMITED,

as Grantor

 	 
	 	By:  	/s/ HENRY
B. WEHRLE III	 
	 	 	Name:  	Henry B. Wehrle III	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 

	 	 	 	 	 
	 	MCJUNKIN DEVELOPMENT

CORPORATION, as Grantor

 	 
	 	By:  	/s/ HENRY
B. WEHRLE III	 
	 	 	Name:  	Henry B. Wehrle III	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 

	 	 	 	 	 
	 	MCJUNKIN-PUERTO RICO CORPORATION, as Grantor

 	 
	 	By:  	/s/ HENRY
B. WEHRLE III	 
	 	 	Name:  	Henry B. Wehrle III	 
	 	 	Title:  	President	 

	 	 	 	 	 

	 	 	 	 	 
	 	MILTON OIL & GAS COMPANY, as Grantor

 

 	 
	 	By:  	/s/ HENRY
B. WEHRLE III	 
	 	 	Name:  	Henry B. Wehrle III	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 

	 	 	 	 	 
	 	GREENBRIER PETROLEUM

CORPORATION, as Grantor

 	 
	 	By:  	/s/ HENRY
B. WEHRLE III	 
	 	 	Name:  	Henry B. Wehrle III	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 

	 	 	 	 	 
	 	PIEDMONT FARMS, INC., as Grantor

 

 	 
	 	By:  	/s/ STEPHEN
WEHRLE	 
	 	 	Name:  	Stephen Wehrle	 
	 	 	Title:  	President	 

	 	 	 	 	 

	 	 	 	 	 
	 	RUFFNER REALTY COMPANY, as Grantor

 

 	 
	 	By:  	/s/ STEPHEN
WEHRLE	 
	 	 	Name:  	Stephen Wehrle	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 

	 	 	 	 	 
	 	MCJUNKIN-WEST AFRICA

CORPORATION, as Grantor

 	 
	 	By:  	/s/ STEPHEN
WEHRLE	 
	 	 	Name:  	Stephen Wehrle	 
	 	 	Title:  	President	 

	 	 	 	 	 

	 	 	 	 	 
	 	Lehman Commercial Paper Inc.,

as Collateral Agent

 	 
	 	By:  	/s/ JEFF
OGDEN	 
	 	 	Name:  	Jeff Ogden	 
	 	 	Title:  	Managing Director	 

[SIGNATURE PAGE TO TERM
SECURITY AGREEMENT]EX-10.5.1

Exhibit 10.5.1

          SUPPLEMENT NO. 1 dated as of April 30, 2007 (this “Supplement”)
to the SECURITY AGREEMENT dated as of January 31, 2007 among each of the
Grantors listed on the signature pages thereto (each such subsidiary
individually, a “Grantor” and, collectively, the
“Grantors”), and Lehman Commercial Paper Inc., as Collateral Agent
for the lenders (the “Lenders”) from time to time parties to the
Credit Agreement referred to below.

          A. Reference is made to the Term Loan Credit Agreement, dated as of January
31, 2007 (as the same may be amended, restated, supplemented or otherwise modified, refinanced
or replaced from time to time, the “Credit Agreement”), among McJunkin Corporation, a West
Virginia corporation (the “Borrower”), the lending institutions from time to time party
thereto (the
“Lenders”) and Lehman Commercial Paper Inc. as Administrative Agent and as Collateral Agent

          B. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Security Agreement.

          C. Section 8.13 of the Security Agreement provides that each Subsidiary of the
Borrower that is required to become a party to the Security Agreement pursuant to Section 9.11
of the Credit Agreement shall become a Grantor, with the same force and effect as if originally
named as a Grantor therein, for all purposes of the Security Agreement upon execution and
delivery by such Subsidiary of an instrument in the form of this Supplement. Each undersigned
Subsidiary (each, a “New Grantor”) is executing this Supplement in accordance with the
requirements of the Security Agreement to become a Subsidiary Grantor under the Security
Agreement as consideration for the Obligations.

          Accordingly, the Collateral Agent and the New Grantors agree as follows:

          SECTION 1. In accordance with Section 8.13 of the Security Agreement, each New Grantor by its
signature below becomes a Grantor under the Security Agreement with the same force and effect as if
originally named therein as a Grantor and each New Grantor hereby (a) agrees to all the terms and
provisions of the Security Agreement applicable to it as a Grantor thereunder and (b) represents
and warrants that the representations and warranties made by it as a Grantor thereunder are true
and correct on and as of the date hereof. In furtherance of the foregoing, each New Grantor, as
security for the payment and performance in full of the Obligations, does hereby bargain, sell,
convey, assign, set over, mortgage, pledge, hypothecate and transfer to the Collateral Agent, for
the benefit of the Secured Parties, and hereby grants to the Collateral Agent, for the benefit of
the Secured Parties, a security interest in all of the Collateral of such New Grantor, in each case
whether now or hereafter existing or in which it now has or hereafter acquires an interest. Each
reference to a “Grantor” in the Security Agreement shall be deemed to include each New Grantor. The
Security Agreement is hereby incorporated herein by reference.

          SECTION 2. Each New Grantor represents and warrants to the Collateral Agent and the other
Secured Parties that this Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in

 

 

accordance with its terms, subject to the effects of bankruptcy, insolvency or similar laws
affecting creditors’ rights generally and general equitable principles.

          SECTION 3. This Supplement may be executed by one or more of the parties to this Supplement on
any number of separate counterparts (including by facsimile or other electronic transmission), and
all of said counterparts taken together shall be deemed to constitute one and the same instrument.
A set of the copies of this Supplement signed by all the parties shall be lodged with the
Collateral Agent and the Borrower. This Supplement shall become effective as to each New Grantor
when the Collateral Agent shall have received counterparts of this Supplement that, when taken
together, bear the signatures of such New Grantor and the Collateral Agent.

          SECTION 4. Such New Grantor hereby represents and warrants that (a) set forth on Schedule A
hereto is (i) the legal name of such New Grantor, (ii) the jurisdiction of incorporation or
organization of such New Grantor, (iii) the identity or type of organization or corporate structure
of such New Grantor and (iv) the Federal Taxpayer Identification Number and organizational number
of such New Grantor and (b) as of the date hereof (i) Schedule I hereto sets forth all of such New
Grantor’s exclusive Licenses of registered Copyrights, (ii) Schedule II hereto sets forth all of
such New Grantor’s registered Copyrights (and all applications therefor), (iii) Schedule III hereto
sets forth all of such New Grantor’s exclusive Licenses of registered Patents, (iv) Schedule IV
hereto sets forth all of such New Grantor’s registered Patents (and all applications therefor), (v)
Schedule V hereto sets forth all of such New Grantor’s exclusive Licenses of registered Trademarks,
and (vi) Schedule VI hereto sets forth all of such New Grantor’s registered Trademarks (and all
applications therefor).

          SECTION 5. Except as expressly supplemented hereby, the Security Agreement shall remain in
full force and effect.

          SECTION 6. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          SECTION 7. Any provision of this Supplement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof and in the Security
Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

          SECTION 8. All notices, requests and demands pursuant hereto shall be made in accordance with
Section 8.2 of the Security Agreement. All communications and notices hereunder to each New Grantor
shall be given to it in care of the Borrower at the Borrower’s address set forth in Section 14.2 of
the Credit Agreement.

 

 

          SECTION 9. Each New Grantor agrees to reimburse the Collateral Agent for its reasonable
out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other
charges and disbursements of counsel for the Collateral Agent.

[Signature Pages Follow]

 

 

          IN WITNESS WHEREOF, each New Grantor and the Collateral Agent have duly
executed this Supplement to the Security Agreement as of the day and year first above written

	 	 	 	 	 
	 	Midway-Tristate Corporation,
     as New
Grantor

 	 
	 	By:  	/s/ S. D. Wehrle
 	 
	 	 	Name:  	S. D. Wehrle  	 
	 	 	Title:  	Vice President 	 
	 
	 	Lehman Commercial Paper Inc.,
     as
Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Supplement No. 1 to Term Loan Security Agreement

 

 

          IN WITNESS WHEREOF, each New Grantor and the Collateral Agent have duly
executed this Supplement to the Security Agreement as of the day and year first
above written

	 	 	 	 	 
	 	Midway-Tristate Corporation,
     as New Grantor	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Lehman Commercial Paper Inc.,
     as
Collateral Agent

 	 
	 	By:  	/s/ Maria M. Lund
 	 
	 	 	Name:  	Maria M. Lund  	 
	 	 	Title:  	Authorized Signatory 	 
	 

Supplement No. 1 to Term Loan Security Agreement

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