Exhibit 10.80

 

AMENDMENT

 

AMENDMENT, dated as of January 31, 2003 (this “Amendment”), under (i) the
Guarantee (the “2000B Guarantee”) and the Credit Agreement (the “2000B Credit
Agreement”), as defined in the Participation Agreement, dated as of October 27,
2000 (as the same may have been, amended, supplemented or otherwise modified
from time to time, the “2000B Participation Agreement”), among Hanover
Compression Limited Partnership (formerly known as Hanover Compression Inc.,
“HCC”), Hanover Equipment Trust 2000B, (the “2000B Lessor”), Bank Hapoalim B.M.
and FBTC Leasing Corp., as investors, the lenders parties thereto (the “2000B
Lenders”), JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), a
New York banking corporation, as the administrative agent for the 2000B Lenders
(the “Administrative Agent”), and the other parties thereto, (ii) the Guarantee
(the “2000A Guarantee”) and the Credit Agreement (the “2000A Credit Agreement”),
as defined in the Participation Agreement, dated as of March 13, 2000 (as the
same may have been, amended, supplemented or otherwise modified from time to
time, the “2000A Participation Agreement”), among HCC, Hanover Equipment Trust
2000A (the “2000A Lessor”), First Union National Bank and Scotiabanc Inc., as
investors, the lenders parties thereto (the “2000A Lenders”), the Administrative
Agent, as agent for the 2000A Lenders, and the other parties thereto, (iii) the
Guarantee (the “1999 Guarantee”) and the Credit Agreement (the “1999 Credit
Agreement”), as defined in the Participation Agreement, dated as of June 15,
1999 (as the same may have been, amended, supplemented or otherwise modified
from time to time, the “1999 Participation Agreement”), among HCC, Hanover
Equipment Trust 1999A (the “1999 Lessor”), Societe Generale Financial
Corporation and FBTC Leasing Corp., as investors, the lenders parties thereto
(the “1999 Lenders”), the Administrative Agent, as agent for the 1999 Lenders,
and the other parties thereto, and (iv) the Credit Agreement (as the same may
have been, amended, supplemented or otherwise modified from time to time, the
“Senior Credit Agreement”), dated as of December 15, 1997, as amended and
restated on December 3, 2001, among Hanover Compressor Company (“Holdings”),
HCC, the Administrative Agent and the lenders parties thereto (the “Senior
Credit Lenders”). The 2000B Participation Agreement, the 2000A Participation
Agreement and the 1999 Participation Agreement are collectively hereinafter
referred to as the “Participation Agreements”. The 2000B Guarantee, the 2000A
Guarantee and the 1999 Guarantee are collectively hereinafter referred to as the
“Synthetic Guarantees”, and the 2000B Credit Agreement, the 2000A Credit
Agreement and the 1999 Credit Agreement are collectively referred to herein as
the “Synthetic Credit Agreements”.

 

WITNESSETH:

 

WHEREAS, Holdings and HCC have requested that the Administrative Agent and the
Required Lenders under each of the Synthetic Guarantees and the Senior Credit
Agreement amend certain of the provisions of each of the Synthetic Guarantees
and the Senior Credit Agreement; and

 

WHEREAS, the Administrative Agent and the Required Lenders under each of the
Synthetic Guarantees and the Senior Credit Agreement are agreeable to the
requested amendments, but only on the terms and subject to the conditions set
forth herein;

 

NOW THEREFORE, in consideration of the premises herein contained and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto hereby agree as follows:

--------------------------------------------------------------------------------

 

I. Defined Terms. As used in this Amendment, terms defined in the preamble
hereof and the recitals hereto are used herein as so defined, and terms defined
in any of the Participation Agreements, the Synthetic Guarantees and the Senior
Credit Agreement and not defined herein are used herein as therein defined.

 

II. Amendments to the Senior Credit Agreement, the Synthetic Guarantees and
Annex A of the Participation Agreements.

 

1. Amendments to Subsection 1.1 of the Senior Credit Agreement. (a) Subsection
1.1 of the Senior Credit Agreement is hereby amended by adding the following
defined terms in proper alphabetical order:

 

“Security Documents”: the collective reference to (a) the Guarantee and
Collateral Agreement and (b) other security documents hereafter delivered to the
Administrative Agent or any collateral agent therefor, granting a Lien on any
property of any Person to secure the obligations and liabilities of Holdings or
any of its Subsidiaries under any Loan Document.

 

(b) Subsection 1.1 of the Senior Credit Agreement is hereby amended by deleting
therefrom the following defined term and substituting in place thereof the
following new definition:

 

“Loan Documents”: this Agreement, the Security Documents, the Applications and
the Guarantees and any amendment, waiver, supplement or other modification to
any of the foregoing.

 

(c) Subsection 1.1 of the Senior Credit Agreement is hereby amended by deleting
clause (c) of the definition of Permitted Business Acquisition in its entirety
and inserting a new clause (c) to read as follows:

 

(c) such acquired or newly formed corporation, partnership, association or other
business entity shall be a Subsidiary and all actions required to be taken, if
any, with respect to such acquired or newly formed Subsidiary under the
Guarantee and Collateral Agreement shall have been taken,

 

(d) Subsection 1.1 of the Senior Credit Agreement is hereby amended by adding a
new sentence at the end of the definition of Permitted Business Acquisition to
read as follows:

 

The Lenders acknowledge that (a) the equity investments and advances listed on
Schedule 8.10 constitute Permitted Business Acquisitions, and (b) to the extent
that any such equity investments or advances listed on such Schedule 8.10
constitute Indebtedness, the creation, incurrence, assumption or sufferance to
exist of such Indebtedness is in compliance with the provisions of Section 8.2
hereof.

 

2. Amendment to Annex A to each of the Participation Agreements. (a) Annex A to
each of the Participation Agreements are hereby amended by adding a new sentence
at the end of the definition of Permitted Business Acquisition to read as
follows:

 

The Lenders acknowledge that (a) the equity investments and advances listed on
Schedule 11.10 of the Guarantee constitute Permitted Business Acquisitions, and
(b) to the extent that any such equity investments or advances listed on such
Schedule 11.10 of the Guarantee constitute Indebtedness, the creation,
incurrence, assumption or sufferance

 

2

--------------------------------------------------------------------------------

to exist of such Indebtedness is in compliance with the provisions of Section
11.2 of the Guarantee.

 

(b) Annex A of each of the Participation Agreements is hereby amended by
deleting therefrom the following defined term and substituting in place thereof
the following new definition:

 

“Security Documents” shall mean the collective reference to the Security
Agreement, the Guarantee and Collateral Agreement, the Lease, the Assignment of
Lease and all other security documents hereafter delivered to the Agent or any
collateral agent therefor granting a Lien on any asset or assets of any Person
to secure the obligations and liabilities of the Lessor under the Credit
Agreement and/or under any of the other Credit Documents or to secure any
guarantee of any such obligations and liabilities.

 

(c) Annex A of each of the Participation Agreements is hereby amended by (i)
deleting the word “and” from the end of clause (j) of the definition of
Operative Agreements, (ii) deleting the period at the end of clause (k) of the
definition of Operative Agreements and inserting “; and” in lieu thereof and
(iii) inserting a new clause (l) to the definition of Operative Agreements to
read as follows:

 

(l) the Guarantee and Collateral Agreement.

 

3. Amendments to Subsection 1.1 of the Senior Credit Agreement and Annex A of
each of the Participation Agreements. (a) Subsection 1.1 of the Senior Credit
Agreement and Annex A to each of the Participation Agreements is hereby amended
by (i) deleting the phrase “recomputed as at the last day of the most recently
ended fiscal quarter of Holdings as if such acquisition had occurred on the
first day of each relevant period for testing such compliance” and replacing it
with “computed as at the last day of the fiscal quarter most recently ended
prior to delivery of the certificate required pursuant to this clause (i)” where
it appears in clause (d)(i) of the definition of Permitted Business Acquisition
therein, (ii) inserting the phrase “concurrently with the delivery of each
certificate of a Responsible Officer pursuant to subsection 7.2(b) hereof”
immediately after the phrase “an officers’ certificate to such effect” where it
appears in clause (d)(i) of the definition of Permitted Business Acquisition
therein and (iii) inserting the phrase “,concurrently with the delivery of each
certificate of a Responsible Officer pursuant to subsection 7.2(b) hereof,”
immediately after the word “Agent” where it appears in clause (e) of the
definition of Permitted Business Acquisition therein.

 

(b) Subsection 1.1 of the Senior Credit Agreement and Annex A to each of the
Participation Agreements are hereby amended by adding the following defined term
in proper alphabetical order:

 

“Capital Expenditures”: for any period, with respect to any Person, the
aggregate of all expenditures by such Person and its Subsidiaries for the
acquisition or leasing (pursuant to a capital lease) of fixed or capital assets
or additions to equipment (including replacements, capitalized repairs and
improvements during such period) that should be capitalized under GAAP on a
consolidated balance sheet of such Person and its Subsidiaries.

 

“Collateral”: all property of Holdings and its Subsidiaries, now owned or
hereafter acquired, upon which a Lien is purported to be created by any Security
Document.

 

“Excluded Unqualified Subsidiary”: any Unqualified Subsidiary not organized
under a jurisdiction of the United States in respect of which either (a) the
pledge of all of

 

3

--------------------------------------------------------------------------------

the Capital Stock of such Subsidiary as Collateral or (b) the guaranteeing by
such Subsidiary of the Obligations, or the pledging of assets by such Subsidiary
to secure the Obligations, would, in the good faith judgment of Holdings, result
in adverse tax consequences to Holdings.

 

“Guarantee and Collateral Agreement”: the Guarantee and Collateral Agreement to
be executed and delivered by Holdings and each Subsidiary Guarantor,
substantially in the form of Exhibit E hereto, as amended pursuant to Section 18
of the Amendment dated as of January 31, 2003 to this Agreement.

 

“2003 Amendment Effective Date”: December 31, 2002.

 

4. Amendment to Subsection 7.2 of the Senior Credit Agreement and Subsection
10.2 of the Synthetic Guarantees. Subsection 7.2(b) of the Senior Credit
Agreement and Subsection 10.2(b) of each of the Synthetic Guarantees is hereby
amended by (i) adding the phrase “(i)” immediately after the phrase “Responsible
Officer” and (ii) adding the following at the end thereof and before the
semicolon:

 

and (ii) setting forth (a) the aggregate Investments made by Holdings and its
Qualified Subsidiaries in Unqualified Subsidiaries as of the last day of the
most recently ended fiscal quarter and (b) in reasonable detail the types and
amounts of Investments made by Holdings and its Qualified Subsidiaries in
Unqualified Subsidiaries for such most recently ended fiscal quarter

 

5. Amendments to Section 7 of the Senior Credit Agreement and Section 10 of each
of the Synthetic Guarantees. (a) Subsection 7.9 of the Senior Credit Agreement
is hereby amended by deleting such Subsection in its entirety and inserting “7.9
Intentionally Deleted” in lieu thereof.

 

(b) Subsection 10.9 of each of the Synthetic Guarantees is hereby amended by
deleting such Subsection in its entirety and inserting “10.9 Intentionally
Deleted” in lieu thereof.

 

(c) Section 7 of the Senior Credit Agreement is hereby amended by adding a new
Subsection 7.10 to read as follows:

 

7.10 Additional Collateral, etc. (a) With respect to any new Subsidiary (other
than an Excluded Unqualified Subsidiary) created or acquired after the 2003
Amendment Effective Date by Holdings or any of its Qualified Subsidiaries
(which, for the purposes of this paragraph (b), shall include any existing
Subsidiary that ceases to be an Excluded Unqualified Subsidiary), promptly (i)
execute and deliver to the Administrative Agent such amendments to the Guarantee
and Collateral Agreement as the Administrative Agent deems necessary or
advisable to grant to the Administrative Agent, for the benefit of the Lenders,
a perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by Holdings or any of its Subsidiaries, (ii) if
requested by the Administrative Agent or the Required Lenders, deliver to the
Administrative Agent the certificates representing such Capital Stock, together
with undated stock powers, in blank, executed and delivered by a duly authorized
officer of Holdings or the relevant Subsidiary, and (iii) cause such new
Subsidiary (A) to become a party to the Guarantee and Collateral Agreement and
(B) to take such actions necessary or advisable to grant to the Administrative
Agent for the benefit of the Lenders a perfected first priority security
interest in the Collateral described in the Guarantee and Collateral Agreement
with respect to such new Subsidiary, including the filing of Uniform Commercial
Code

 

4

--------------------------------------------------------------------------------

financing statements in such jurisdictions as may be required by the Guarantee
and Collateral Agreement or by law or as may be requested by the Administrative
Agent. The parties hereto acknowledge that the Guarantee and Collateral
Agreement provides that each such Subsidiary shall be required to pledge its
assets as provided therein but shall not be required to guarantee payment of
obligations pursuant thereto unless (i) such Subsidiary guarantees payment of
all or any portion of the Guaranteed Obligations, as defined in the 2001A
Participation Agreement and the 2001B Participation Agreement, or (ii) such
Subsidiary is requested to become a guarantor by the Administrative Agent or the
Required Lenders.

 

(b) With respect to any new Excluded Unqualified Subsidiary created or acquired
after the 2003 Amendment Effective Date by Holdings or any Subsidiary, promptly
(i) execute and deliver to the Administrative Agent such amendments to the
Guarantee and Collateral Agreement as the Administrative Agent deems necessary
or advisable to grant to the Administrative Agent, for the benefit of the
Lenders, a perfected first priority security interest in the Capital Stock of
such new Subsidiary that is owned by Holdings or any Subsidiary that is not an
Excluded Unqualified Subsidiary (provided that in no event shall more than 66%
of the total outstanding voting Capital Stock of any such new Subsidiary be
required to be so pledged), and (ii) if requested by the Administrative Agent or
the Required Lenders, deliver to the Administrative Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank,
executed and delivered by a duly authorized officer of Holdings or the relevant
Subsidiary, and take such other action as may be necessary or, in the opinion of
the Administrative Agent, desirable to perfect the Administrative Agent’s
security interest therein.

 

(b) Section 10 of each of the Synthetic Guarantees is hereby amended by adding a
new Subsection 10.10 to read as follows:

 

10.10 Additional Collateral, etc. (a) With respect to any new Subsidiary (other
than an Excluded Unqualified Subsidiary) created or acquired after the 2003
Amendment Effective Date by Holdings or any of its Qualified Subsidiaries
(which, for the purposes of this paragraph (b), shall include any existing
Subsidiary that ceases to be an Excluded Unqualified Subsidiary), promptly (i)
execute and deliver to the Agent such amendments to the Guarantee and Collateral
Agreement as the Agent deems necessary or advisable to grant to the Agent, for
the benefit of the Lenders, a perfected first priority security interest in the
Capital Stock of such new Subsidiary that is owned by Holdings or any of its
Subsidiaries, (ii) if requested by the Agent or the Required Lenders, deliver to
the Agent the certificates representing such Capital Stock, together with
undated stock powers, in blank, executed and delivered by a duly authorized
officer of Holdings or the relevant Subsidiary, and (iii) cause such new
Subsidiary (A) to become a party to the Guarantee and Collateral Agreement and
(B) to take such actions necessary or advisable to grant to the Agent for the
benefit of the Lenders a perfected first priority security interest in the
Collateral described in the Guarantee and Collateral Agreement with respect to
such new Subsidiary, including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement or by law or as may be requested by the Agent. The parties
hereto acknowledge that the Guarantee and Collateral Agreement provides that
each such Subsidiary shall be required to pledge its assets as provided therein
but shall not be required to guarantee payment of obligations pursuant thereto
unless (i) such Subsidiary guarantees payment of all or any portion of the
Guaranteed Obligations, as defined in the

 

5

--------------------------------------------------------------------------------

 

2001A Participation Agreement and the 2001B Participation Agreement or (ii) such
Subsidiary is requested to become a Guarantor by the Agent or the Required
Lenders.

 

(b) With respect to any new Excluded Unqualified Subsidiary created or acquired
after the 2003 Amendment Effective Date by Holdings or any Subsidiary, promptly
(i) execute and deliver to the Agent such amendments to the Guarantee and
Collateral Agreement as the Agent deems necessary or advisable to grant to the
Agent, for the benefit of the Lenders, a perfected first priority security
interest in the Capital Stock of such new Subsidiary that is owned by Holdings
or any Subsidiary that is not an Excluded Unqualified Subsidiary (provided that
in no event shall more than 66% of the total outstanding voting Capital Stock of
any such new Subsidiary be required to be so pledged), and (ii) if requested by
the Agent or the Required Lenders, deliver to the Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank,
executed and delivered by a duly authorized officer of Holdings or the relevant
Subsidiary, and take such other action as may be necessary or, in the opinion of
the Agent, desirable to perfect the Agent’s security interest therein.

 

6. Amendments to Subsection 8.1 of the Senior Credit Agreement and Subsection
11.1 of each of the Synthetic Guarantees. (a) Subsection 8.1(a) of the Senior
Credit Agreement and Subsection 11.1(a) of each of the Synthetic Guarantees are
hereby amended by inserting after the phrase “.65 to 1.0” the phrase “(or .70 to
1.0 for the fourth fiscal quarter of 2002 and for each fiscal quarter ending
during fiscal year 2003)”.

 

(b) Subsection 8.1(c) of the Senior Credit Agreement and Subsection 11.1(c) of
each of the Synthetic Guarantees are hereby amended by inserting after the
phrase “4.0 to 1.0” the phrase “(or 4.50 to 1.0 for each period of four
consecutive fiscal quarters ending during the fourth fiscal quarter of 2002 and
the fiscal year 2003)”.

 

(c) Subsection 8.1(d) of the Senior Credit Agreement and Subsection 11.1(d) of
each of the Synthetic Guarantees are hereby amended by inserting after the
phrase “4.5 to 1.0” the phrase “(or 5.0 to 1.0 for each period of four
consecutive fiscal quarters ending during the fourth fiscal quarter of 2002 and
the fiscal year 2003)”.

 

(d) Subsection 8.1(e) of the Senior Credit Agreement and Subsection 11.1(e) of
each of the Synthetic Guarantees are hereby amended by inserting after the
phrase “2.5 to 1.0” the phrase “(or 2.25 to 1.0 for each period of four
consecutive fiscal quarters ending during the fourth fiscal quarter of 2002 and
the fiscal year 2003)”.

 

7. Amendment to Subsection 8.2 of the Senior Credit Agreement and Subsection
11.2 of each of the Synthetic Guarantees. (a) Subsection 8.2 of the Senior
Credit Agreement is hereby amended by (i) deleting the word “and” at the end of
clause (o) thereof and deleting clause (p) thereof in its entirety and inserting
the following in lieu thereof:

 

(p) Investments permitted to be made pursuant to subsection 8.10 in the form of
Indebtedness; and

 

(q) unsecured Indebtedness not otherwise permitted by clauses (a)-(p) above not
exceeding $125,000,000 in the aggregate at any time outstanding.

 

6

--------------------------------------------------------------------------------

 

(b) Subsection 11.2 of each of the Synthetic Guarantees is hereby amended by (i)
deleting the word “and” at the end of clause (o) thereof and deleting clause (p)
thereof in its entirety and inserting the following in lieu thereof:

 

(p) Investments permitted to be made pursuant to subsection 11.10 in the form of
Indebtedness; and

 

(q) unsecured Indebtedness not otherwise permitted by clauses (a)-(p) above not
exceeding $125,000,000 in the aggregate at any time outstanding.

 

8. Amendments to Subsection 8.3 of the Senior Credit Agreement and Subsection
11.3 of each of the Synthetic Guarantees. (a) Subsection 8.3 of the Senior
Credit Agreement is hereby amended by (i) deleting the clause (u) in its
entirety, (ii) deleting the phrase “(v)” at the beginning of clause (v) thereof
and replacing it with the phrase “(w)” and (iii) and inserting the following new
clauses (u) and (v) to read as follows:

 

(u) Liens created pursuant to the Security Documents;

 

(v) Liens not otherwise permitted in clauses (a)-(u) above securing Indebtedness
not exceeding $2,500,000 in the aggregate; and

 

(b) Subsection 11.3 of each of the Synthetic Guarantees are hereby amended by
(i) deleting the clause (u) in its entirety, (ii) deleting the phrase “(v)” at
the beginning of clause (v) thereof and replacing it with the phrase “(w)” and
(iii) and inserting the following new clauses (u) and (v) to read as follows:

 

(u) Liens created pursuant to the Security Documents;

 

(v) Liens not otherwise permitted in clauses (a)-(u) above securing Indebtedness
not exceeding $2,500,000 in the aggregate; and

 

9. Amendments to Subsection 8.6 of the Senior Credit Agreement and Subsection
11.6 of each of the Synthetic Guarantees. Subsection 8.6 of the Senior Credit
Agreement and Subsection 11.6 of each of the Synthetic Guarantees are hereby
amended by adding at the end of clause (h) thereof and before the semicolon the
phrase:

 

provided (i) that each such sale or exchange is for fair market value and (ii)
the aggregate fair market value of natural gas compressors so sold or exchanged
after the 2003 Amendment Effective Date does not exceed $65,000,000

 

(b) Subsection 8.6 of the Senior Credit Agreement is hereby amended by (i)
deleting the word “and” from the end of clause (h), (ii) deleting the period
from the end of clause (i) and inserting the phrase “; and” in lieu thereof and
(iii) adding new clause (j) to read as follows:

 

(j) Asset sales made on or after the 2003 Amendment Effective Date consisting of
sales of assets described on Schedule 8.6 hereto for fair market value.

 

(c) Subsection 11.6 of each of the Synthetic Guarantees is hereby amended by (i)
deleting the word “and” from the end of clause (h), (ii) deleting the period
from the end of clause (i) and inserting the phrase “; and” in lieu thereof and
(iii) adding new clause (j) to read as follows:

 

7

--------------------------------------------------------------------------------

(j) Asset sales made on or after the 2003 Amendment Effective Date consisting of
sales of assets described on Schedule 11.6 hereto for fair market value.

 

10. Amendments to Subsection 8.8 of the Senior Credit Agreement and Subsection
11.8 of each of the Synthetic Guarantees. (a) Subsection 8.8 of the Senior
Credit Agreement is hereby amended by adding at the end of clause (iii) thereof
the following phrase:

 

less the aggregate amount of consideration paid by Holdings and its Subsidiaries
to pay, prepay, redeem or purchase the 2001A Equipment Lease Securities and the
2001B Equipment Lease Securities pursuant to the last sentence of subsection
8.11; provided, that open market repurchases of Holdings common stock pursuant
to this clause (iii) may only be made with the net cash proceeds of (i) asset
sales permitted pursuant to subsection 8.6(j) or (ii) the issuance of additional
Subordinated Debt

 

(b) Subsection 11.8 of each of the Synthetic Guarantees is hereby amended by
adding at the end of clause (iii) thereof the following phase:

 

less the aggregate amount of consideration paid by Holdings and its Subsidiaries
to pay, prepay, redeem or purchase the 2001A Equipment Lease Securities and the
2001B Equipment Lease Securities pursuant to the last sentence of subsection
11.11; provided, that open market repurchases of Holdings common stock pursuant
to this clause (iii) may only be made with the net cash proceeds of (i) asset
sales permitted pursuant to subsection 11.6(j) or (ii) the issuance of
additional Subordinated Debt

 

11. Amendments to Subsection 8.10 of the Senior Credit Agreement and Subsection
11.10 of each of the Synthetic Guarantees. (a) Subsection 8.10 of the Senior
Credit Agreement is hereby amended by (i) deleting the word “and” which appears
at the end of clause (j), (ii) deleting the period from the end of clause (k)
and inserting a “;” in lieu thereof and (iii) adding the following new clauses
at the end thereof:

 

(l) Investments in Unqualified Subsidiaries listed in Schedule 8.10; and

 

(m) Payment, prepayment, redemption or purchase of any 2001A Equipment Lease
Securities and 2001B Equipment Lease Securities permitted pursuant to the last
sentence of subsection 8.11.

 

(b) Subsection 11.10 of each of the Synthetic Guarantees is hereby amended by
(i) deleting the word “and” which appears at the end of clause (j), (ii)
deleting the period from the end of clause (k) and inserting a “;” in lieu
thereof and (iii) adding the following new clauses at the end thereof:

 

(l) Investments in Unqualified Subsidiaries listed in Schedule 11.10; and

 

(m) Payment, prepayment, redemption or purchase of any 2001A Equipment Lease
Securities and 2001B Equipment Lease Securities permitted pursuant to the last
sentence of subsection 11.11.

 

12. Amendments to Subsection 8.11 of the Senior Credit Agreement and Subsection
11.11 of each of the Synthetic Guarantees. (a) Subsection 8.11 of the Senior
Credit Agreement is hereby amended by adding a new sentence at the end thereof
to read as follows:

 

8

--------------------------------------------------------------------------------

 

Notwithstanding the foregoing, Holdings and its Subsidiaries may pay, prepay,
redeem or purchase the 2001A Equipment Lease Securities and the 2001B Equipment
Lease Securities for aggregate consideration in an amount equal to $75,000,000
less the aggregate amount of consideration paid to make open market repurchases
of shares of Holdings common stock in reliance on clause (iii) of Subsection
8.8; provided, that the payment, prepayment, redemption or purchase of any 2001A
Equipment Lease Securities and 2001B Equipment Lease Securities pursuant to this
sentence may only be made with the net cash proceeds of (i) asset sales
permitted pursuant to subsection 8.6(j) or (ii) the issuance of additional
Subordinated Debt.

 

(b) Subsection 11.11 of each of the Synthetic Guarantees is hereby amended by
adding a new sentence at the end thereof to read as follows:

 

Notwithstanding the foregoing, Holdings and its Subsidiaries may pay, prepay,
redeem or purchase the 2001A Equipment Lease Securities and the 2001B Equipment
Lease Securities for aggregate consideration in an amount equal to $75,000,000
less the aggregate amount of consideration paid to make open market repurchases
of shares of Holdings common stock in reliance on clause (iii) of Subsection
11.8; provided, that the payment, prepayment, redemption or purchase of any 2001
Equipment Lease Securities and 2001B Equipment Lease Securities pursuant to this
sentence may only be made with the net cash proceeds of (i) asset sales
permitted pursuant to subsection 8.6(j) or (ii) the issuance of additional
Subordinated Debt.

 

13. Amendment to Section 8 of the Senior Credit Agreement and Section 11 of each
of the Synthetic Guarantees. (a) Section 8 of the Senior Credit Agreement is
hereby amended by adding a new Subsection 8.18 to read as follows:

 

8.18 Limitation on Capital Expenditures. Make or commit to make any Capital
Expenditure to be incurred during fiscal year 2003, except Capital Expenditures
of Holdings and its Subsidiaries in the ordinary course of business not
exceeding $200,000,000.

 

(b) Section 11 of each of the Synthetic Guarantees is hereby amended by adding a
new Subsection 11.18 to read as follows:

 

11.18 Limitation on Capital Expenditures. Make or commit to make any Capital
Expenditure to be incurred during fiscal year 2003, except Capital Expenditures
of Holdings and its Subsidiaries in the ordinary course of business not
exceeding $200,000,000.

 

14. Amendment to Section 9 of the Senior Credit Agreement. (a) Section 9 of the
Senior Credit Agreement is hereby amended by deleting clauses (d) and (e) in
their entirety and adding the following in lieu thereof:

 

(d) Holdings shall default in the observance or performance of any other
agreement contained in this Agreement or any other Loan Document (other than as
provided in paragraphs (a) through (c) of this Section 9) and such default shall
continue unremedied for a period of 30 days; or

 

(e) The Subsidiaries’ Guarantee, the Holdings Guarantee or any of the Security
Documents shall, at any time, cease to be in full force and effect (unless
released by the

 

9

--------------------------------------------------------------------------------

Administrative Agent or any collateral agent therefor) or shall be declared null
and void, or the validity or enforceability thereof shall be contested by any
Credit Party or any Lien created by any of the Security Document shall cease to
be enforceable and of the same effect and priority purported to be created
thereby; or

 

15. Amendments to Section 11 of the Senior Credit Agreement and Section 12 of
each of the Synthetic Guarantees. (a) Subsection 11.1 of the Senior Credit
Agreement is hereby amended by inserting after the phrase “Loan Documents,” in
clause (b) thereof the phrase “or release all or substantially all of the
Collateral or release all of substantially all of the Guarantors from their
obligations under either the Guarantee and Collateral Agreement”.

 

(b) Section 11 of the Senior Credit Agreement is hereby amended by adding the
following new Subsections to read as follows:

 

11.19 Releases of Guarantees and Liens. (a) Notwithstanding anything to the
contrary contained herein or in any other Loan Document, the Administrative
Agent is hereby irrevocably authorized by each Lender (without requirement of
notice to or consent of any Lender except as expressly required by Section 11.1)
to take any action requested by Holdings having the effect of releasing any
Collateral or guarantee obligations (i) to the extent necessary to permit
consummation of any transaction not prohibited by any Loan Document or that has
been consented to in accordance with Subsection 11.1 or (ii) under the
circumstances described in paragraph (b) below.

 

(b) At such time as the Loans, the Reimbursement Obligations and the other
obligations under the Loan Documents shall have been paid in full, the
Commitments have been terminated and no Letters of Credit shall be outstanding,
the Collateral shall be released from the Liens created by the Security
Documents, and the Security Documents and all obligations (other than those
expressly stated to survive such termination) of the Administrative Agent and
each Loan Party under the Security Documents shall terminate, all without
delivery of any instrument or performance of any act by any Person.

 

11.20 Confidentiality. Each of the Administrative Agent and the Lenders agrees
to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other
advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this subsection, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating to
Holdings or any of is Subsidiaries and its respective obligations, (g) with the
consent of Holdings or any of is Subsidiaries or (h) to the extent such
Information (i) becomes publicly

 

10

--------------------------------------------------------------------------------

available other than as a result of a breach of this subsection or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than Holdings or any of its Subsidiaries. For the purposes
of this Section, “Information” means all information received from Holdings or
any of its Subsidiaries relating to Holdings or its business, other than any
such information that is available to the Administrative Agent or any Lender on
a nonconfidential basis prior to disclosure by Holdings or any of its
Subsidiaries. Any Person required to maintain the confidentiality of Information
as provided in this subsection shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information. Notwithstanding anything herein to the
contrary, any party to this Agreement (and any employee, representative, or
other agent of any party to this Agreement) may disclose to any and all persons,
without limitation of any kind, the structure and tax aspects of the
transactions contemplated by this Agreement, and all materials of any kind
(including opinions or other tax analyses) related to such structure and tax
aspects. Further, each party hereto acknowledges that it has no proprietary
rights to any tax matter or tax idea related to the transactions contemplated by
this Agreement.

 

(c) Section 12 of each of the Synthetic Guarantees is hereby amended by adding
the following new Subsections to read as follows:

 

12.14 Releases of Guarantees and Liens. (a) Notwithstanding anything to the
contrary contained herein or in any other Credit Document, the Agent is hereby
irrevocably authorized by each Lender (without requirement of notice to or
consent of any Lender except as expressly required by Section 12.4) to take any
action requested by Holdings having the effect of releasing any Collateral or
guarantee obligations (i) to the extent necessary to permit consummation of any
transaction not prohibited by any Credit Document or that has been consented to
in accordance with Subsection 12.4 or (ii) under the circumstances described in
paragraph (b) below.

 

(b) At such time as the Loans and the other obligations under the Credit
Documents shall have been paid in full, the Commitments have been terminated and
no Letters of Credit shall be outstanding, the Collateral shall be released from
the Liens created by the Security Documents, and the Security Documents and all
obligations (other than those expressly stated to survive such termination) of
the Agent and each Loan Party under the Security Documents shall terminate, all
without delivery of any instrument or performance of any act by any Person.

 

12.15 Confidentiality. Each of the Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers, employees
and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to any Operative
Agreement, (e) in connection with the exercise of any remedies hereunder or any

 

11

--------------------------------------------------------------------------------

suit, action or proceeding relating to any Operative Agreement or the
enforcement of rights hereunder, (f) subject to an agreement containing
provisions substantially the same as those of this subsection, to (i) any
assignee of or Participant in, or any prospective assignee of or Participant in,
any of its rights or obligations under any Operative Agreement or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to Holdings or any of is Subsidiaries and its respective
obligations, (g) with the consent of Holdings or any of is Subsidiaries or (h)
to the extent such Information (i) becomes publicly available other than as a
result of a breach of this subsection or (ii) becomes available to the Agent or
any Lender on a nonconfidential basis from a source other than Holdings or any
of its Subsidiaries. For the purposes of this Section, “Information” means all
information received from Holdings or any of its Subsidiaries relating to
Holdings or its business, other than any such information that is available to
the Agent or any Lender on a nonconfidential basis prior to disclosure by
Holdings or any of its Subsidiaries. Any Person required to maintain the
confidentiality of Information as provided in this subsection shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.
Notwithstanding anything herein to the contrary, any party to this Agreement
(and any employee, representative, or other agent of any party to this
Agreement) may disclose to any and all persons, without limitation of any kind,
the structure and tax aspects of the transactions contemplated by this
Agreement, and all materials of any kind (including opinions or other tax
analyses) related to such structure and tax aspects. Further, each party hereto
acknowledges that it has no proprietary rights to any tax matter or tax idea
related to the transactions contemplated by this Agreement.

 

16. Amendment to Annex A of the Senior Credit Agreement and Annex B of each of
the Participation Agreements. (a) Annex A of the Senior Credit Agreement is
hereby amended by deleting the pricing grid contained therein in its entirety
and inserting the following in lieu thereof:

 

PRICING GRID

 

Revolving Credit Facility

 

Consolidated Leverage Ratio

--------------------------------------------------------------------------------

    

Applicable Margin-Eurocurrency Loans

--------------------------------------------------------------------------------

    

Applicable Margin-Base Rate Loans

--------------------------------------------------------------------------------

    

Applicable Commitment Fee Rate

--------------------------------------------------------------------------------

>4.5 to 1.0

    

2.50%

    

1.50%

    

0.500%

<=4.5 to 1.0 and >4.0 to 1.0

    

2.25%

    

1.25%

    

0.500%

<=4.0 to 1.0 and >3.5.0 to 1.0

    

2.00%

    

1.00%

    

0.500%

<=3.5 to 1.0 and >3.0 to 1.0

    

1.75%

    

.750%

    

.375%

<=3.0 to 1.0 and >2.0 to 1.0

    

1.50%

    

.500%

    

.300%

 

12

--------------------------------------------------------------------------------

 

<=2.0 to 1.0 and >1.0 to 1.0

  

1.25

%

  

.250

%

  

.300

%

<=1.0 to 1.0

  

1.00

%

  

0

%

  

.250

%

 

Changes in the Applicable Margin or in the Applicable Commitment Fee Rate
resulting from changes in the Consolidated Leverage Ratio shall become effective
on each date which is the start of the succeeding fiscal quarter (each, an
“Adjustment Date”) for which an Applicable Margin Certificate of Holdings is
delivered to the Lenders pursuant to Section 7.2(f) (but in any event not later
than the 45th day after the end of each of each quarter of each fiscal year) and
shall remain in effect until the next change to be effected pursuant to this
paragraph. If any Applicable Margin Certificate referred to above is not
delivered within the time periods specified above, then the Consolidated
Leverage Ratio as at the end of the fiscal period that would have been covered
thereby shall for the purposes of this definition be deemed to be greater than
5.0 to 1.0. In addition, at all times while an Event of Default shall have
occurred and be continuing, the highest rate set forth in each column of the
Pricing Grid shall apply. Each determination of the Consolidated Leverage Ratio
pursuant to this Pricing Grid shall be made for the periods and in the manner
contemplated by Section 8.1(d).

 

(b) Annex B to each of the Participation Agreements is hereby amended by
deleting the pricing grid contained therein in its entirety and inserting the
following in lieu thereof:

 

PRICING GRID

 

Participation Agreement

 

Consolidated Leverage Ratio

--------------------------------------------------------------------------------

    

Applicable Margin-Eurocurrency Loans

--------------------------------------------------------------------------------

      

Applicable Margin-Base Rate Loans

--------------------------------------------------------------------------------

      

Applicable Commitment Fee Rate

--------------------------------------------------------------------------------

 

>4.5 to 1.0

    

2.50

%

    

1.50

 

    

0.500

%

<=4.5 to 1.0 and >4.0 to 1.0

    

2.25

%

    

1.25

 

    

0.500

%

<=4.0 to 1.0 and >3.5.0 to 1.0

    

2.00

%

    

1.00

 

    

0.500

%

<=3.5 to 1.0 and >3.0 to 1.0

    

1.75

%

    

.750

%

    

.375

%

<=3.0 to 1.0 and >2.0 to 1.0

    

1.50

%

    

.500

%

    

.300

%

<=2.0 to 1.0 and >1.0 to 1.0

    

1.25

%

    

.250

%

    

.300

%

<=1.0 to 1.0

    

1.00

%

    

0

%

    

.250

%

 

Changes in the Applicable Margin or in the Applicable Commitment Fee Rate
resulting from changes in the Consolidated Leverage Ratio shall become effective
on each date which is the start of the succeeding fiscal quarter (each, an
“Adjustment Date”) for which an Applicable Margin Certificate of Holdings is
delivered to the Lenders pursuant to

 

13

--------------------------------------------------------------------------------

 

Section 10.2(f) (but in any event not later than the 45th day after the end of
each of each quarter of each fiscal year) and shall remain in effect until the
next change to be effected pursuant to this paragraph. If any Applicable Margin
Certificate referred to above is not delivered within the time periods specified
above, then the Consolidated Leverage Ratio as at the end of the fiscal period
that would have been covered thereby shall for the purposes of this definition
be deemed to be greater than 5.0 to 1.0. In addition, at all times while an
Event of Default shall have occurred and be continuing, the highest rate set
forth in each column of the Pricing Grid shall apply. Each determination of the
Consolidated Leverage Ratio pursuant to this Pricing Grid shall be made for the
periods and in the manner contemplated by Section 11.1(d).

 

17. Effectiveness of Pricing. Any changes in pricing effected by this Amendment
shall be effective as of the 2003 Effective Date.

 

18. Addition of Schedules. The Senior Credit Agreement is hereby amended by
adding thereto Schedules 8.6 and 8.11 attached hereto, and each of the Synthetic
Guarantees is amended by adding thereto Schedules 11.6 and 11.11 attached
hereto.

 

19. Lien for Certain Equipment Guarantee Obligations. On or prior to February
14, 2003, the Guarantee and Collateral Agreement shall be amended and restated
(the “Amended Guarantee and Collateral Agreement”) in a manner satisfactory to
the Administrative Agent to provide for the following:

 

(i) The obligations of the Credit Parties under the Synthetic Guarantees
(excluding the 2001A Guarantee and the 2001B Guarantee) shall be secured equally
and ratably with each other and with the HCC Obligations (as currently defined
in the Guarantee and Collateral Agreement) and the guarantees thereof by the
Collateral under the Guarantee and Collateral Agreement.

 

(ii) JPMorgan Chase Bank will be appointed as collateral agent under the
Guarantee and Collateral Agreement for the Lenders under the Senior Credit
Agreement and the Synthetic Guarantees (excluding the 2001A Guarantee and the
2001B Guarantee) pursuant to its customary agency, indemnity and standard of
care provisions

 

20. Effectiveness. This Amendment shall become effective (the “Effective Date”)
upon fulfillment of the following conditions precedent: (a) Holdings and HCC
shall have delivered to the Administrative Agent duly executed copies of this
Amendment and the Guarantee and Collateral Agreement, (b) the Administrative
Agent shall have received duly executed copies of this Amendment from the
Required Lenders under each of the Senior Credit Agreement and the Synthetic
Guarantees, (c) Holdings and HCC shall have paid all fees due in connection with
this Amendment and (d) no Default or Event of Default shall have occurred and be
continuing on the date hereof after giving effect to this Amendment.

 

21. Representations and Warranties. Holdings and HCC hereby represent and
warrant that the representations and warranties contained in each of the Senior
Credit Agreement, the Loan Documents and the Operative Agreements (as defined in
each of the Synthetic Guarantees) will be, after giving effect to this
Amendment, true and correct in all material respects, as if made on and as of
the date hereof (except those which expressly speak as of a certain date).

 

22. Continuing Effect of the Senior Credit Agreement, Participation Agreements
and Operative Agreements. This Amendment shall not constitute an amendment or
waiver of any other

 

14

--------------------------------------------------------------------------------

 

provision of the Senior Credit Agreement, the Loan Documents or the Operative
Agreements not expressly referred to herein and shall not be construed as a
waiver or consent to any further or future action on the part of HCC, Holdings,
the 2000B Lessor, the 2000A Lessor or the 1999 Lessor that would require a
waiver or consent of the Administrative Agent and/or the 2000B Lenders, the
2000A Lenders or the 1999 Lenders. Except as expressly amended hereby, the
provisions of each of the Senior Credit Agreement, the Loan Documents and the
Operative Agreements are and shall remain in full force and effect.

 

23. Counterparts. This Amendment may be executed in counterparts and all of the
said counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Amendment by
facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof.

 

24. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

25. Expenses. Holdings and HCC agree to pay or reimburse the Administrative
Agent for all of its reasonable out-of-pocket costs and expenses incurred in
connection with the preparation, negotiation and execution of this Amendment,
including, without limitation, the fees and disbursements of counsel to the
Administrative Agent.

 

 

 

 

15

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

 

HANOVER COMPRESSOR COMPANY

By:

 

/S/ MARK S. BERG

--------------------------------------------------------------------------------

   

Name: Mark S. Berg

Title: Senior Vice President

 

HANOVER COMPRESSION LIMITED PARTNERSHIP

By:

 

/S/ MARK S. BERG

--------------------------------------------------------------------------------

   

Name: Mark S. Berg

Title: Senior Vice President

 

JPMORGAN CHASE BANK, as Administrative Agent

By:

 

/S/ BETH LAWRENCE

--------------------------------------------------------------------------------

   

Name: Beth Lawrence

Title: Managing Director

 

16

--------------------------------------------------------------------------------

 

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

ARAB BANKING CORPORATION

--------------------------------------------------------------------------------

   

[LENDER]

By:

 

/S/ ROBERT J. IVOSEVICE

--------------------------------------------------------------------------------

Title: Deputy General Manager

 

17

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

DZ BANK AG Deutsche Zentral-Genossenschaftsbank, New York Branch

By:

 

/S/ WILLIAM J. PROCASKY

--------------------------------------------------------------------------------

Name: William J. Procasky

Title: Vice President

By:

 

/S/ MARK K. CONNELLY

--------------------------------------------------------------------------------

Name: Mark K. Connelly

Title: Vice President

 

18

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

BANK OF SCOTLAND

--------------------------------------------------------------------------------

   

[LENDER]

By:

 

/S/ JOSEPH FRATUS

--------------------------------------------------------------------------------

Name: Joseph Fratus

Title: First Vice President

 

19

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

RZB FINANCE LLC

By:

 

/S/ PEARL GEFFERS

--------------------------------------------------------------------------------

Name: Pearl Geffers

Title: First Vice President

By:

 

/S/ FRANK J. YAUTZ

--------------------------------------------------------------------------------

Name: Frank J. Yautz

Title: First Vice President

 

20

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

FBTC LEASING CORP.

By:

 

/S/ KAZUEKI KITABATEKE

--------------------------------------------------------------------------------

Name: Kazueki Kitabateke

Title: Executive Vice President

 

21

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

DEUTSCHE BANK TRUST COMPANY AMERICAS

By:

 

/S/ ILLEGIBLE SIGNATURE

--------------------------------------------------------------------------------

Name:

Title: Director

 

22

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

MIZUHO CORPORATE BANK, HOUSTON OFFICE

By:

 

/S/ TORU MAEDA

--------------------------------------------------------------------------------

Name: Toru Maeda

Title: General Manager Houston Office

 

23

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

BANK OF NOVA SCOTIA

--------------------------------------------------------------------------------

   

[LENDER]

By:

 

/S/ ILLEGIBLE SIGNATURE

--------------------------------------------------------------------------------

Name:

Title: Managing Director

 

24

--------------------------------------------------------------------------------

 

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

SUNTRUST BANK

--------------------------------------------------------------------------------

   

[LENDER]

By:

 

/S/ JOSEPH M. MCCREARY

--------------------------------------------------------------------------------

Name: Joseph M. McCreary

Title: Vice President

 

25

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

CITIBANK, N.A.

By:

 

/S/ DOUGLAS A. WHIDDON

--------------------------------------------------------------------------------

Name: Douglas A. Whiddon

Title: Attorney-in-Fact

 

26

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

NATEXIS BANQUES POPULAIRES

   

[LENDER]

By:

 

/S/ RENAUD J. D’HERBES

--------------------------------------------------------------------------------

Name: Renaud J. d’Herbes

Title: Senior Vice President

and Regional Manager

By:

 

/S/ TIMOTHY L. POLVADO

--------------------------------------------------------------------------------

Name: Timothy L. Polvado

Title: Vice President and Group Manager

 

27

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

CREDIT SUISSE FIRST BOSTON

By:

 

/S/ JAMES P. MORAN

--------------------------------------------------------------------------------

Name: James P. Moran

Title: Director

By:

 

/S/ IAN W.NALITT

--------------------------------------------------------------------------------

Name: Ian W. Nalitt

Title: Associate

 

28

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

WACHOVIA BANK, NATIONAL ASSOCIATION

By:

 

/S/ DAVID HUMPHREYS

--------------------------------------------------------------------------------

Name: David Humphreys

Title: Vice-President

 

29

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

BANKONE, NA (MAIN OFFICE CHICAGO)

--------------------------------------------------------------------------------

   

[LENDER]

By:

 

/S/ DIANE L. RUSSELL

--------------------------------------------------------------------------------

Name: Diane L. Russell

Title: Director

 

30

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

NATIONAL CITY BANK

By:

 

/S/ ILLEGIBLE SIGNATURE

--------------------------------------------------------------------------------

Name:

Title: Vice President

 

31

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

SCOTIABANC INC.

--------------------------------------------------------------------------------

   

[LENDER]

By:

 

/S/ ILLEGIBLE SIGNATURE

--------------------------------------------------------------------------------

Name:

Title: Managing Director

 

32

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

JPMORGAN CHASE BANK

--------------------------------------------------------------------------------

   

[LENDER]

By:

 

/S/ BETH LAWRENCE

--------------------------------------------------------------------------------

Name: Beth Lawrence

Title: Managing Director

 

33

--------------------------------------------------------------------------------

HANOVER COMPRESSOR COMPANY

AMENDMENT DATED AS OF JANUARY 31, 2003

   

SOCIETE GENERALE, as Lender

By:

 

/S/ SPENCER N. SMITH

--------------------------------------------------------------------------------

Name: Spencer N. Smith

Title: Vice President

 

34