Document:

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                                                                    EXHIBIT 10.5

                              AMENDED AND RESTATED
                           SECURITY DEPOSIT AGREEMENT

         Effective as of December 21, 2001, Administaff of Texas, Inc.
("Administaff") and United HealthCare Insurance Company ("United HealthCare")
(collectively Administaff and United HealthCare are referred to as the
"Parties") agree as follows:

1.       Administaff shall remit a security deposit to United HealthCare in the
         amount of Fifteen Million and No/100 Dollars ($15,000,000) on or before
         December 31, 2001 plus an additional Five Million and No/100 Dollars
         ($5,000,000) before April 1, 2002 and an additional Five Million and
         No/100 Dollars ($5,000,000) before September 30, 2002 (collectively
         known as the "Security Deposit"). For the 2003 calendar year, the
         Security Deposit shall be Twenty-Five Million and No/100 Dollars
         ($25,000,000). Unless amended in writing by the Parties, beginning in
         the 2004 calendar year, the Security Deposit will be adjusted as of
         January 1st of each calendar year during the term of the Insurance
         Program to an amount equal to the greater of (i) $22,500,000 or (ii)
         7.5 percent of the Aggregate Payable Rate (using the number of covered
         employees under Policies and Non-MP Policies as of December 15 of the
         prior year) for the first quarter of the applicable calendar year
         multiplied by four. On or before January 1st of each calendar year
         during the term of the Insurance Program as defined in section 6 below,
         Administaff will remit any deficit in the above-required Security
         Deposit to United HealthCare or United HealthCare will remit any
         surplus in the above-required Security Deposit to Administaff.

2.       United HealthCare will credit interest to the Security Deposit as of
         the end of each calendar month. The interest credited for each month
         will be based on (i) the daily balance in the Security Deposit for the
         month and (ii) an annual interest rate equal to the average, for that
         month and the two immediately preceding months, of the yields at
         auction (on a bank-discount basis) for three-month Treasury bills, plus
         25 basis points.

         United HealthCare may change the method of crediting interest described
         above by giving ninety days written notice of such change to
         Administaff. However, such change shall apply only as of the first day
         of the calendar year beginning after the 90-day notice period.

3.       United HealthCare may without any further authorization from
         Administaff draw against such Security Deposit and retain such draw
         upon the following circumstances:

         a.       United HealthCare may draw on the Security Deposit upon a
                  failure by Administaff to pay (i) any amount then currently
                  payable under the Insurance Program, including but not limited
                  to, any amount described in

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                  section 4(b)(v) of the Minimum Premium Financial Agreement, or
                  (ii) any amount due under any United HealthCare policy in
                  effect following termination of the Minimum Premium Financial
                  Agreement; provided, however, that any draw shall only be
                  allowed under this Section 3.a. up to an amount not greater
                  than the Aggregate Payable Rate for the applicable calendar
                  year quarter reduced by any amount related to such Aggregate
                  Payable Rate otherwise paid by Administaff within *** business
                  days of the final due date of such amount or any applicable
                  incremental amount thereof.

         b.       United HealthCare may draw on the Security Deposit in an
                  amount equal to United HealthCare's Accumulated Deficit as of
                  the date that (i) Administaff's public rating on short-term
                  debt falls below Investment Grade and on the last day of any
                  subsequent calendar month in which Administaff's public rating
                  is still below Investment Grade, (ii) Administaff fails to
                  cure or a creditor fails to waive a default by Administaff or
                  its affiliates on their material obligations under their
                  revolving line of credit facility (or under any future
                  revolving line of credit facility or successor credit
                  facility) and on the last day of any subsequent calendar month
                  in which such default continues to exist without having been
                  cured or waived, or (iii) Administaff's current ratio (i.e.,
                  current assets over current liabilities) is less than 6.0 to
                  1.0 and on the last day of any subsequent calendar month in
                  which such a current ratio continues to exist (each of (i),
                  (ii) and (iii) are referred to as a "Trigger Event" or
                  collectively, the "Trigger Events"). If a Trigger Event occurs
                  other than at the end of a calendar year, United HealthCare
                  will determine the Accumulated Deficit as of that date, but in
                  accordance with the annual review principles described in
                  Exhibit A of the Minimum Premium Financial Agreement.
                  Administaff must notify United HealthCare immediately upon the
                  occurrence of any of the Trigger Events.

4.       In addition to United HealthCare's right to draw against the Security
         Deposit in accordance with Section 3 above, upon a termination of the
         Minimum Premium Financial Agreement, United HealthCare without any
         further authorization from Administaff may draw against the Security
         Deposit and retain such draw as follows:

         a.       Immediately following completion of the Initial Termination
                  Review, United HealthCare may withdraw from the Security
                  Deposit an amount equal to any Accumulated Deficit identified
                  in that review.

         b.       Immediately following completion of the Final Termination
                  Review, United HealthCare may withdraw from the Security
                  Deposit an amount equal to any Accumulated Deficit identified
                  in that review.

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5.       Any amount withdrawn against the Security Deposit by United HealthCare
         shall be credited as Policy Revenue under, and to the extent provided
         in, Exhibit A of the Minimum Premium Financial Agreement.

6.       The below indicated defined terms when initially capitalized in this
         Agreement shall have the following meanings. Capitalized terms not
         defined in this section shall have the meaning ascribed to them in the
         Minimum Premium Financial Agreement.

                  "INSURANCE PROGRAM" means the program of medical and dental
         insurance and related services provided through the Policies and the
         Non-MP Policies.

                  "MINIMUM PREMIUM FINANCIAL AGREEMENT" is the Minimum Premium
         Financial Agreement by and between Administaff of Texas, Inc. and
         United HealthCare Insurance Company, as amended from time to time.

                  "AGGREGATE PAYABLE RATE" - for a calendar year quarter means
         an amount equal to the product of (i) the applicable "Monthly Payable
         Rate" (defined in or pursuant to Exhibit A of the Minimum Premium
         Financial Agreement) multiplied by three, and (ii) the number of
         employees covered under the Policies and the Non-MP Policies in a given
         month determined as of the 15th day of the applicable month.

7.       In the event that Administaff fails to make any of the deposits
         required by Section 1 above, then United HealthCare shall not be
         obligated to perform under the Minimum Premium Financial Agreement and
         the MP Administrative Services Agreement for all periods subsequent to
         the date of Administaff's failure to make such deposit.

8.       Within 10 days after completion of the Final Termination Review, United
         HealthCare shall return to Administaff any balance of the Security
         Deposit remaining after United HealthCare has exercised its right to
         draw on the Security Deposit as provided in this Security Deposit
         Agreement.

9.       The right to draw against the Security Deposit under the Agreement
         shall be in addition to, and not in lieu of, any other remedy available
         at law or in equity to United HealthCare, and any such draw by United
         HealthCare shall not cure Administaff's failure to pay amounts due,
         without United HealthCare's express written consent.

10.      This Security Deposit Agreement shall replace and render null and void
         any agreements relating to any security deposit previously entered into
         by the Parties. Any remittances of funds by Administaff pursuant to any
         previous security deposit agreement shall be considered performance
         under this Security Deposit Agreement.

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ADMINISTAFF OF TEXAS, INC.                   UNITED HEALTHCARE
                                             INSURANCE COMPANY

/s/ Howard G. Buff                           /s/ William A. Munsel
---------------------------                  ----------------------------
Date: 6/25/02                                Date: 6/25/02
      ---------------------                        ----------------------

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                                                                    EXHIBIT 10.1

                               FOURTH AMENDMENT TO
                   SECOND AMENDED AND RESTATED LOAN AGREEMENT

                  THIS FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN
AGREEMENT (this "Fourth Amendment" or this "Amendment") dated effective as of
July 31, 2002 is entered into by and among HYDRIL COMPANY, a Delaware
corporation ("Borrower"), the banks listed on the signature pages hereof (along
with any other Person who becomes a lender, the "Lenders"), the guarantors
listed on the signature page hereto and any Person who becomes a Guarantor
subsequent hereto (collectively the "Guarantors"), and BANK ONE, NA,
successor-in-interest to Bank One, Texas, N.A., with its main office in Chicago,
Illinois ("Bank One"), individually as a Lender and as agent for Lenders (in
such capacity, the "Agent").

                              PRELIMINARY STATEMENT

                  WHEREAS, Borrower and Bank One, as the Agent and as a Lender,
entered into that certain Second Amended and Restated Loan Agreement dated
August 25, 2000 (the "Original Loan Agreement") under the terms of which Lenders
agreed to make revolving credit loans to Borrower not to exceed $25,000,000; and

                  WHEREAS, Borrower and Bank One, as the Agent and as a Lender,
entered into that certain First Amendment to Second Amended and Restated Loan
Agreement dated September 29, 2000 (the "First Amendment") pursuant to which
Borrower and Lenders agreed to amend certain terms and provisions of the
Original Loan Agreement; and

                  WHEREAS, Borrower and Bank One, as the Agent and as a Lender,
entered into that certain Second Amendment to Second Amended and Restated Loan
Agreement dated September 25, 2001 (the "Second Amendment") pursuant to which
Borrower and Lenders agreed to further amend certain terms and provisions of the
Original Loan Agreement, as amended by the First Amendment; and

                  WHEREAS, Borrower and Bank One, as the Agent and as a Lender,
entered into that certain Third Amendment to Second Amended and Restated Loan
Agreement dated December 19, 2001 (the "Third Amendment") pursuant to which
Borrower and Lenders agreed to further amend certain terms and provisions of the
Original Loan Agreement, as amended by the First Amendment and the Second
Amendment (the Original Loan Agreement, as amended by the First Amendment, the
Second Amendment and the Third Amendment, is hereinafter referred to as the
"Loan Agreement"); and

                  WHEREAS, Guarantors have executed that certain Guaranty dated
December 19, 2001 (the "Guaranty Agreement") guaranteeing, among other things,
the Obligations (as such term is defined in the Guaranty Agreement) of Borrower
under the Loan Agreement; and

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                  WHEREAS, Borrower has now requested that the Agent and Lenders
modify the Loan Agreement further and change certain terms thereof, and the
Agent and Lenders have agreed to do so; and

                  WHEREAS, Lenders, the Agent, Borrower and Guarantors wish to
execute this Amendment to evidence such agreement;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants herein contained and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, Borrower, Guarantors,
Lenders and the Agent hereby agree as follows (all capitalized terms used herein
and not otherwise defined shall have the meanings as defined in the Loan
Agreement):

                  Section 1. Amendment to Section 1.1. Section 1.1 of the Loan
Agreement is hereby amended by deleting the definition of "Revolving Loan
Commitment" in its entirety and substituting in its place the following:

                  "Revolving Loan Commitment means $5,000,000.00."

                  Section 2. Representations True; No Default. Borrower
represents and warrants that:

                     (i) this Amendment has been duly authorized, executed and
              delivered on its behalf; the Loan Agreement, as amended hereby,
              together with the Notes and the other Loan Documents to which
              Borrower is a party, constitute valid and legally binding
              agreements of Borrower enforceable in accordance with their terms,
              except as enforceability thereof may be limited by bankruptcy,
              insolvency, fraudulent conveyance, fraudulent transfer,
              reorganization or moratorium or other similar law relating to
              creditors' rights and by general equitable principles which may
              limit the right to obtain equitable remedies (regardless of
              whether such enforceability is considered in a proceeding, in
              equity or at law);

                     (ii) the representations and warranties of Borrower
              contained in Article 6 of the Loan Agreement are true and correct
              in all material respects on and as of the date hereof as though
              made on and as of the date hereof, except to the extent such
              representations and warranties relate solely to an earlier date or
              are untrue as a result of transactions permitted under the Loan
              Agreement as amended hereby;

                     (iii) after giving effect to this Amendment, no Default or
              Event of Default under the Loan Agreement has occurred and is
              continuing;

                     (iv) Exhibit 6.9 to the Loan Agreement is true and correct
              as of the date hereof; and

                     (v) The execution of this Amendment and the guaranties
              contemplated herein will not result in a breach of any provision
              of the Note Agreement and no consent or agreement of the
              Noteholders is required to be obtained in connection with the
              execution of this Amendment or the guaranties contemplated herein.

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                  Section 3. Expenses, Additional Information. Borrower shall
pay to the Agent all reasonable expenses incurred in connection with the
execution of this Amendment, including all reasonable expenses incurred in
connection with any previous negotiation and loan documentation. Borrower shall
furnish to the Agent and Lenders all such other documents, consents and
information relating to Borrower as the Agent or any Lender may reasonably
require to accomplish the purposes hereof.

                  Section 4. Effectiveness. This Amendment shall become
effective when, and only when Borrower, Guarantors, Lenders and the Agent shall
have executed and delivered to the Agent a counterpart of this Amendment.

                  Section 5. Miscellaneous Provisions.

                  (a) From and after the execution and delivery of this
Amendment, the Loan Agreement shall be deemed to be amended and modified as
herein provided, and except as so amended and modified the Loan Agreement shall
continue in full force and effect.

                  (b) The Loan Agreement and this Amendment shall be read and
construed as one and the same instrument.

                  (c) Any reference in any Loan Document to the Loan Agreement
shall be a reference to the Loan Agreement as amended by this Amendment.

                  (d) THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF TEXAS AND OF THE UNITED STATES OF AMERICA.

                  (e) This Amendment may be signed in any number of counterparts
and by different parties in separate counterparts and may be in original or
facsimile form, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

                  (f) The headings herein shall be accorded no significance in
interpreting this Amendment.

                  Section 6. Guarantors. This Amendment does not have the effect
of discharging, releasing or in any way modifying or limiting the obligations of
the Guarantors under the Guaranty Agreement, which is, and shall remain, in full
force and effect. Guarantors, by execution below, hereby consent to this
Amendment and the modification to the Loan Agreement described herein and
acknowledge and agree that their respective obligations under the Guaranty
Agreement are not affected hereby and that such obligations are continuing,
existing and in full force and effect.

                  Section 7. Binding Effect. This Amendment shall be binding
upon and inure to the benefit of Borrower, Lenders and the Agent and their
respective successors and assigns, except that Borrower shall not have the right
to assign its rights hereunder or any interest herein.

                  SECTION 8. FINAL AGREEMENT OF THE PARTIES. THIS AMENDMENT, THE
NOTES, THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS

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CONSTITUTE A "LOAN AGREEMENT" AS DEFINED IN SECTION 26.02(a) OF THE TEXAS
BUSINESS AND COMMERCE CODE AND REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES.

                  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

                  Section 9. This Amendment may be executed by the parties on
separate counterparts, and each counterpart when so executed and delivered shall
constitute an original instrument, and all such separate counterparts shall
constitute but one and the same instrument.

             [The remainder of this page intentionally left blank.]

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                  IN WITNESS WHEREOF, the parties have caused this Amendment to
be executed by their respective duly authorized officers to be effective as of
the date first written above.

                                 BORROWER:

                                        HYDRIL COMPANY

                                        By: /s/ Michael C. Kearney
                                           -------------------------------------
                                        Name:   Michael C. Kearney
                                        Title:  Chief Financial Officer &
                                                Vice President Administration

                                        By: /s/ Andrew W. Ricks
                                           -------------------------------------
                                        Name:   Andrew W. Ricks
                                        Title:  Treasurer

                                 AGENT/BANK:

                                        BANK ONE, NA, Individually, as a
                                        Lender and as the Agent

                                        By: /s/  Brandi Molaison
                                           -------------------------------------
                                        Name:    Brandi Molaison
                                        Title:   Vice President

                  [First Signature Page to Fourth Amendment to
                  Second Amended and Restated Credit Agreement]

<PAGE>

                                   GUARANTORS:

                                   HYDRIL COMPANY LP

                                   By:        Hydril General LLC,
                                              its General Partner

                                              By: /s/ Christopher T. Seaver
                                                  ------------------------------
                                              Name:   Christopher T. Seaver
                                              Title:  President

                                   HYDRIL GENERAL LLC

                                   By: /s/ Christopher T. Seaver
                                       -----------------------------------------
                                   Name:   Christopher T. Seaver
                                   Title:  President

                                   HYDRIL LIMITED LLC

                                   By: /s/ Toni L. Lindsay
                                       -----------------------------------------
                                   Name:   Toni L. Lindsay
                                   Title:  Assistant Secretary

                  [Second Signature Page to Fourth Amendment to
                  Second Amended and Restated Credit Agreement]

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