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                                                                  Exhibit 10.79

[LOGO]
THE HANOVER COMPANY
12001 North Houston Rosslyn
Houston, Texas 77086
P.O. Box 690349
Houston, Texas 77269
Tel: (281) 447-8787
Fax: (281) 405-6283

                                      August 19, 2002

Mr. Chad Deaton
13914 I. O. Court
Willis, TX 77318

Dear Chad:

This letter summarizes Hanover Compressor Company's offer of employment to you
to serve as the Company's President and Chief Executive Officer ("President and
CEO") in Hanover's corporate office in Houston, Texas. In this role, you will
report to the Company's board of directors. You will be appointed to the
Company's board of directors to serve until the next annual shareholders'
meeting, at which time you will be nominated for election to the board of
directors. I am confident that your employment at Hanover will prove to be
mutually rewarding and offer you the career opportunity that you seek.

As Hanover's President and CEO, your compensation and other terms and conditions
of employment will be set by the Company's board of directors. Initial
compensation for this position is as follows.

Base Salary:
                           $540,000.00 annual base salary for the remainder of
                           2002, on a pro-rata basis, and for 2003 ($20,769.23
                           per pay period for 26 pay periods per full year).

Bonus
Opportunity:
                           0 - 100% of annual base salary to be paid annually
                           based upon personal performance as well as Company
                           performance, and as determined by the Company's board
                           of directors.

Stock Option
Program:
                           As of the date hereof, the Company is granting to you
                           non-qualified stock options to purchase 200,000
                           shares of Company common stock at a price per share
                           equal to the NYSE closing market price on the date
                           hereof, and otherwise under the provisions of the
                           applicable Company stock option plan and agreement.
                           You and the Company will promptly sign and enter an
                           option

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August 19, 2002
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                           agreement to evidence your option grant. In addition,
                           provided that you remain continually employed by the
                           Company in a role substantially similar to that
                           described herein, you will be given the full
                           opportunity to participate in the stock, incentive,
                           retirement and other plans offered to the most senior
                           officers of the Company.

Severance:
                           The Company will make an immediate lump sum severance
                           payment to you equal to three times your annual base
                           salary which was in effect immediately before the
                           "Change of Control", if within the first twelve
                           months following a "Change of Control" of the
                           Company, (ii) you terminate your employment with the
                           Company for "Good Reason" or (ii) the Company
                           terminates your employment without "Cause".
                           Otherwise, the Company will make a severance payment
                           to you equal to one times your annual base salary,
                           payable in 24 equal monthly installments, if the
                           Company terminates your employment without "Cause" at
                           any time other than the first twelve month period
                           immediately following a "Change of Control". In
                           either of these circumstances, the Company shall also
                           reimburse you for your COBRA premiums, paid to
                           continue your current health benefits, for a period
                           of up to eighteen months.

                           Please note, however, that this agreement will not
                           obligate the Company to make any severance payment to
                           you in the event that (i) you resign or voluntarily
                           terminate your employment with the Company for any
                           reason, other than "Good Reason" within the first
                           twelve months following a "Change of Control", (ii)
                           your employment ends due to your death or inability
                           to perform the essential requirements of the job,
                           with or without reasonable accommodation, due to
                           disability, or (iii) you are terminated for "Cause".
                           Additionally, in the event that the Company
                           subsequently implements employment contracts for its
                           executive managers that contain Change of
                           Control-related severance provisions more favorable
                           to managers than that described above, you will be
                           offered similar protections.

                           These commitments regarding your severance are
                           contingent upon, and are in consideration for your
                           continued compliance with your post-termination
                           obligations, including the Cooperation, Confidential
                           Information and Non-competition and Non-solicitation
                           provisions, which are addressed below.

                           For purposes of this letter agreement, the terms
                           "Change of Control" and "Cause" will have the same
                           definition as used in the Company's 2001 Equity
                           Incentive Plan and are incorporated herein by
                           reference. Moreover, voluntary termination of
                           employment for

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August 19, 2002
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                           "Good Reason" shall be defined as any situation
                           within the first twelve months following a "Change in
                           Control" of the Company in which your termination of
                           employment with the Company (i) promptly follows a
                           material reduction of your duties and
                           responsibilities or a permanent change in your duties
                           and responsibilities which are materially
                           inconsistent with the type of duties and
                           responsibilities then in effect or your title, (ii)
                           promptly follows a reduction in your annual base
                           salary (without regard to bonus compensation, if any)
                           or a reduction in your annual bonus opportunity as
                           set forth in this letter (it is acknowledged that a
                           reduction in the actual amount of your bonus from
                           year to year as a result of the criteria addressed
                           above will not be considered a reduction in bonus
                           opportunity), (iii) promptly follows a material
                           reduction in your employee benefits (without regard
                           to bonus compensation, if any) if such reduction
                           results in you receiving benefits which are, in the
                           aggregate, materially less than the benefits received
                           by other comparable employees of the Company
                           generally, (iv) promptly follows a material failure
                           by the Company to comply with the terms of this
                           letter or to pay any compensation when due, but only
                           after you provide notice to the Company of such
                           failure and the Company has reasonable opportunity to
                           cure, (v) promptly follows a relocation of your
                           principal work location outside the Houston, Texas,
                           metropolitan area, or (vi) the Board otherwise
                           determines that a voluntary termination by you is for
                           "Good Reason" under the circumstances then
                           prevailing.

Benefits & Vacation:
                           As a full time employee, you will also be eligible to
                           participate in the various benefit programs offered
                           by the Company. Other than in the case of the
                           Company's 401(k) plan described below, you will
                           participate in these programs starting the first day
                           of the month of your employment start date. Pursuant
                           to Company and ERISA guidelines, your eligibility for
                           participating in the Company's 401(k) plan will occur
                           on the 1st of the month following six months of
                           service with the Company; provided, however, you may
                           immediately roll any of your existing 401(k) plan
                           accounts into the Company's plan in compliance with
                           the terms of the Company's plan and policies. You
                           will be entitled to up to four weeks of vacation per
                           year.

Cooperation:
                           We ask that you agree to act at all times in a manner
                           consistent with the interests of Hanover Compressor
                           Company and it affiliated entities with respect to
                           our shareholders, customers, employees, agents, and
                           lenders. Neither you nor the Company will

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August 19, 2002
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                           defame or disparage each other. You further agree
                           that should your employment end, you will provide
                           reasonable cooperation to the Company in response to
                           reasonable requests made by the Company for
                           information or assistance, including but not limited
                           to, participating upon reasonable notice in
                           conferences and meetings, providing documents or
                           information, aiding in the analysis of documents, or
                           complying with any other reasonable requests by the
                           Company including execution of any agreements that
                           are reasonably necessary.

Confidential
Information:
                           During your employment you will be given access to
                           information relating to the business and affairs of
                           Hanover Compressor Company and its affiliated
                           entities, including, without limitation, trade
                           secrets, designs, technology, processes, data,
                           techniques, inventions (whether patentable or not),
                           works of authorship, formulas, business and
                           development plans, customer lists, software programs
                           and subroutines, source and object code, algorithms,
                           terms of compensation and personnel assessments of
                           employees, information regarding the Company's
                           facilities, processes, operating procedures,
                           financial data, purchasing practices, marketing,
                           management procedures, books and records, employee or
                           personnel data, contractual arrangements or
                           proposals, properties and business affairs of the
                           Hanover entities, as well as the Company's business
                           plans and budgets, information concerning the
                           Company's actual or anticipated business, research or
                           development, and may receive information in
                           confidence by or for any of the Hanover entities from
                           any other person (collectively "Confidential
                           Information"). We ask that you agree that you will
                           not, at any time, directly or indirectly, for any
                           reason whatsoever, with or without cause, except in
                           the appropriate course of Company business or unless
                           pursuant to a lawful subpoena, disclose or
                           disseminate any Confidential Information to any
                           person or entity, nor will you use any Confidential
                           Information in competing with Hanover Compressor
                           Company or its affiliated entities in any manner. It
                           is expressly understood that the Confidential
                           Information covered by this paragraph includes only
                           information that is confidential or proprietary
                           information of one or more of the Hanover entities
                           and therefore does not include information which is
                           generally available to the public.

Non-competition
and Non-solicitation:
                           We also request that you agree that in exchange for
                           your compensation and other consideration, as well as
                           the Company's

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August 19, 2002
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                           providing you access to its Confidential Information,
                           for a two (2) year period following your termination
                           from employment with the Company for any reason, you
                           will not directly or indirectly on behalf of yourself
                           or any other person(s), company, partnership,
                           corporation, or business of whatever nature compete
                           with the Company or its affiliated entities, which
                           includes your promise not to: (i) engage in, carry
                           on, or have a financial interest in (in any capacity
                           whatsoever, including, without limitation, as an
                           officer, director, shareholder, owner, partner,
                           joint venturer, manager, advisor, employee,
                           independent contractor or consultant) any entity
                           that competes with the business of Hanover
                           Compressor Company or its affiliated entities; (ii)
                           induce or attempt to influence any employee, agent,
                           consultant or independent contractor of Hanover
                           Compressor Company or its affiliated entities to
                           terminate work or employment with the Company, or
                           otherwise adversely interfere with or affect the
                           business relationship between them; or (iii) divert,
                           take, solicit and/or accept the business of any
                           entity that is or has been a customer of Hanover
                           Compressor Company or its affiliated entities, or
                           any potential customer of Hanover Compressor Company
                           or affiliated entities. This agreement shall apply
                           regardless of whether your employment terminates
                           under circumstances which entitle you to receive the
                           severance payments described above. If you breach the
                           foregoing covenants, the Company shall be no longer
                           obligated to provide you severance payments or
                           continued reimbursement for health care benefits;
                           however, this shall not prohibit the Company in any
                           way from pursuing or obtaining other or additional
                           remedies at law or at equity. These non-competition
                           and non-solicitation provisions will control over
                           any other non-competition or related agreements in
                           the Company's plans and policies, including the stock
                           option agreement and/or plan.

Injunctive Relief:
                           Please also agree that the covenants set forth herein
                           pertaining to Cooperation, Confidential Information
                           and Non-competition and Non-solicitation impose a
                           reasonable restraint in light of the activities and
                           business of the Company. Because of the difficulty of
                           measuring economic loss to the Company as a result of
                           the breach of any of these covenants and because of
                           the immediate and irreparable damage that could be
                           caused to the Company for which it would have no
                           other adequate remedy, in the event of an alleged
                           breach any of these covenants, the covenants may be
                           enforced by the Company by injunctions, restraining
                           orders, and other equitable actions.

Start Date:

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August 19, 2002
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                           Your employment with the Company will start on August
                           19, 2002.

Dispute
Resolution:
                           Any controversy or claim arising out of or relating
                           to your employment, separation from, and/or
                           affiliation with the Company, except for those
                           pertaining to the Cooperation, Confidential
                           Information, and Non-competition and Non-solicitation
                           provisions above, shall be resolved by arbitration in
                           accordance with the Employment Dispute Resolution
                           Rules of the American Arbitration Association, and
                           judgment upon the award rendered by the arbitrator
                           may be entered in any court having jurisdiction. In
                           reaching his or her decision, the arbitrator shall
                           have no authority to change or modify any provision
                           of this Agreement.
Choice of
Law:
                           This Agreement is made and shall be enforced pursuant
                           to the laws of the State of Texas in Houston.

Entire Agreement:
                           This letter contains the entire agreement between you
                           and the Company concerning the subject matter hereof
                           and supersedes any prior or contemporaneous
                           agreements between you and the Company, and cannot be
                           changed, modified, or amended without a written
                           agreement signed by the Company and you.

Successors and
Assigns:
                           This agreement shall be binding upon you, your heirs,
                           successors, and assigns and the Company and its
                           successors and assigns. The Company may assign its
                           rights, duties and obligations under this agreement.
                           However, your rights, duties and obligations are
                           personal and therefore shall not be transferred or
                           assigned by you to another.

Please promptly provide Hanover with the required documentation to complete the
INS I-9 Form. Also, please undertake your drug screen as soon as possible;
successful completion of a drug screen is required for employment.

Your acceptance of this offer can be confirmed by signing the acceptance below
and returning a copy to my attention.

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August 19, 2002
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Again, we are extremely confident that your employment as Hanover's President
and CEO will represent a very significant addition to the Company and an
excellent opportunity for both you and the Company. We are very pleased to
extend this offer to you. We look forward to welcoming you.

Sincerely,

Hanover Compressor Company

By:    /s/ Victor E. Grijalva
       ----------------------------
       Name: Victor E. Grijalva
       Title: Chairman of the Board

Accepted:  /s/ Chad Deaton           Date:  August 19, 2002
           -------------------------
           Chad Deaton