##### 



E xhibit 10.3




---



##### 



PageSECTION 1.
    
    DEFINITIONS
    
    
    11.1
    
    
    Defined Terms
    
    
    11.2
    
    
    Other Definitional Provisions
    
    
    24SECTION 2.
    
    AMOUNT AND TERMS OF COMMITMENTS
    
    
    252.1
    
    
    Revolving Commitments
    
    
    252.2
    
    
    Procedure for Revolving Borrowing
    
    
    252.3
    
    
    Incremental Term Loan Commitments
    
    
    26SECTION 3.
    
    INTEREST RATE PROVISIONS, FEES, CONVERSIONS AND PAYMENTS
    
    
    273.1
    
    
    Interest Rates and Payments Dates
    
    
    273.2
    
    
    Commitment Fees; Other Fees and Compensation
    
    
    273.3
    
    
    Termination or Reduction of the Revolving Commitments
    
    
    283.4
    
    
    Joint and Several Obligation for Repayment of Loans; Optional Prepayments and
other Repayments
    
    
    283.5
    
    
    Conversion and Continuation Options
    
    
    293.6
    
    
    Minimum Amounts
    
    
    303.7
    
    
    Computation of Interest and Fees
    
    
    303.8
    
    
    Inability to Determine Interest Rate
    
    
    303.9
    
    
    Pro Rata Treatment and Payments
    
    
    313.10
    
    
    Illegality
    
    
    323.11
    
    
    Requirements of Law
    
    
    323.12
    
    
    Taxes
    
    
    333.13
    
    
    Indemnity
    
    
    353.14
    
    
    Replacement of Lenders
    
    
    353.15
    
    
    Change of Lending Office
    
    
    363.16
    
    
    Determination of Dollar Equivalent
    
    
    363.17
    
    
    Reallocation Option
    
    
    36SECTION 4.
    
    LETTERS OF CREDIT
    
    
    374.1
    
    
    L/C Commitment
    
    
    374.2
    
    
    Procedure for Issuance of Letters of Credit
    
    
    374.3
    
    
    Fees, Commissions and Other Charges
    
    
    374.4
    
    
    L/C Participations
    
    
    384.5
    
    
    Reimbursement Obligation of HCLP
    
    
    394.6
    
    
    Obligations Absolute
    
    
    394.7
    
    
    Letter of Credit Payments
    
    
    404.8
    
    
    Application
    
    
    404.9
    
    
    Letters of Credit Denominated in Available Foreign Currencies
    
    
    404.10
    
    
    Change in Law; Availability of Foreign Currencies
    
    
    40SECTION 5.
    
    REPRESENTATIONS AND WARRANTIES
    
    
    405.1
    
    
    Financial Condition
    
    
    405.2
    
    
    No Change
    
    
    415.3
    
    
    Corporate Existence; Compliance with Law
    
    
    415.4
    
    
    Corporate Power; Authorization; Enforceable Obligations
    
    
    415.5
    
    
    No Legal Bar
    
    
    425.6
    
    
    No Material Litigation
    
    
    425.7
    
    
    No Default
    
    
    425.8
    
    
    Ownership of Property; Liens; Leases of Equipment
    
    
    42
 i




---



##### 



Page5.9
    
    
    Intellectual Property
    
    
    425.10
    
    
    Taxes
    
    
    425.11
    
    
    Federal Regulations
    
    
    435.12
    
    
    ERISA
    
    
    435.13
    
    
    Investment Company Act; Other Regulations
    
    
    435.14
    
    
    Subsidiaries
    
    
    435.15
    
    
    Purpose of Loans
    
    
    435.16
    
    
    Environmental Matters
    
    
    445.17
    
    
    Accuracy and Completeness of Information
    
    
    455.18
    
    
    Senior Indebtedness
    
    
    455.19
    
    
    Security Documents
    
    
    455.20
    
    
    Regulation H
    
    
    46SECTION 6.
    
    CONDITIONS PRECEDENT
    
    
    466.1
    
    
    Conditions to Each Extension of Credit
    
    
    466.2
    
    
    Conditions to Initial Extension of Credit
    
    
    46SECTION 7.
    
    AFFIRMATIVE COVENANTS
    
    
    487.1
    
    
    Financial Statements
    
    
    487.2
    
    
    Certificates; Other Information
    
    
    497.3
    
    
    Payment of Obligations
    
    
    507.4
    
    
    Conduct of Business and Maintenance of Existence
    
    
    507.5
    
    
    Maintenance of Property; Insurance
    
    
    507.6
    
    
    Inspection of Property; Books and Records; Discussions
    
    
    507.7
    
    
    Notices
    
    
    507.8
    
    
    Environmental Laws
    
    
    517.9
    
    
    Additional Collateral, etc
    
    
    527.10
    
    
    Maintenance of Flood Insurance
    
    
    53SECTION 8.
    
    NEGATIVE COVENANTS
    
    
    538.1
    
    
    Financial Condition Covenants
    
    
    538.2
    
    
    Limitation on Indebtedness
    
    
    548.3
    
    
    Limitation on Liens
    
    
    558.4
    
    
    Limitation on Guarantee Obligations
    
    
    578.5
    
    
    Limitations on Fundamental Changes
    
    
    588.6
    
    
    Limitation on Sale or Lease of Assets
    
    
    588.7
    
    
    Limitation on Leases
    
    
    608.8
    
    
    Limitation on Dividends
    
    
    608.9
    
    
    Limitation on Derivatives
    
    
    608.10
    
    
    Limitation on Investments, Loans and Advances
    
    
    608.11
    
    
    Limitation on Optional Payments and Modifications of Debt Instruments
    
    
    628.12
    
    
    Transactions with Affiliates
    
    
    638.13
    
    
    Sale and Leaseback
    
    
    638.14
    
    
    Fiscal Year
    
    
    638.15
    
    
    Nature of Business
    
    
    638.16
    
    
    Unqualified Subsidiaries
    
    
    648.17
    
    
    Negative Pledge Clauses
    
    
    648.18
    
    
    Clauses Restricting Subsidiary Distributions
    
    
    64SECTION 9.
    
    EVENTS OF DEFAULT
    
    
    65SECTION 10.
    
    THE ADMINISTRATIVE AGENT
    
    
    6810.1
    
    
    Appointment
    
    
    6810.2
    
    
    Delegation of Duties
    
    
    6810.3
    
    
    Exculpatory Provisions
    
    
    6810.4
    
    
    Reliance by Administrative Agent
    
    
    68
 ii




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##### 



Page10.5
    
    
    Notice of Default
    
    
    6910.6
    
    
    Non-Reliance on Administrative Agent and Other Lenders
    
    
    6910.7
    
    
    Indemnification
    
    
    6910.8
    
    
    Administrative Agent in Its Individual Capacity
    
    
    7010.9
    
    
    Successor Administrative Agent
    
    
    70SECTION 11.
    
    MISCELLANEOUS
    
    
    7011.1
    
    
    Amendments and Waivers
    
    
    7011.2
    
    
    Notices
    
    
    7111.3
    
    
    No Waiver; Cumulative Remedies
    
    
    7211.4
    
    
    Survival of Representations and Warranties
    
    
    7311.5
    
    
    Payment of Expenses and Taxes
    
    
    7311.6
    
    
    Successors and Assigns; Participations and Assignments
    
    
    7311.7
    
    
    Adjustments; Set-off
    
    
    7611.8
    
    
    Counterparts
    
    
    7711.9
    
    
    Severability
    
    
    7711.10
    
    
    Integration
    
    
    7711.11
    
    
    GOVERNING LAW
    
    
    7711.12
    
    
    Submission To Jurisdiction; Waivers
    
    
    7711.13
    
    
    Acknowledgments
    
    
    7811.14
    
    
    WAIVERS OF JURY TRIAL
    
    
    7811.15
    
    
    Judgment
    
    
    7811.16
    
    
    Usury
    
    
    7811.17
    
    
    Conflicts
    
    
    7911.18
    
    
    Releases of Guarantees and Liens
    
    
    7911.19
    
    
    Confidentiality
    
    
    7911.20
    
    
    Patriot Act Notice
    
    
    8011.21
    
    
    Waiver under Existing Credit Agreement
    
    
    8011.22
    
    
    True Up
    
    
    80
 iii




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##### 



PageAnnexesA
    
    Pricing GridB
    
    Existing Letters of CreditSchedulesSchedule 1.1A
    
    Revolving Lenders and Revolving CommitmentsSchedule 1.1B
    
    Mortgaged PropertySchedule 3.17
    
    Agreed Percentage of Euro Revolving CommitmentsSchedule 5.2
    
    Material Changes; Restricted PaymentsSchedule 5.4
    
    Required ConsentsSchedule 5.14
    
    SubsidiariesSchedule 5.16
    
    Environmental MattersSchedule 5.19(a)
    
    UCC Filing JurisdictionsSchedule 5.19(b)
    
    Mortgage Filing JurisdictionsSchedule 8.2(c)
    
    Existing IndebtednessSchedule 8.3(l)
    
    Existing LiensSchedule 8.6(h)
    
    Lease of AssetsSchedule 8.6(i)
    
    Asset SalesSchedule 8.10A
    
    Investments in Unqualified SubsidiariesSchedule 8.10B
    
    Permitted Business AcquisitionsSchedule 8.12
    
    Affiliate TransactionsSchedule 8.13
    
    Sale and Leaseback TransactionsExhibitsExhibit A-1
    
    Form of US Revolving NoteExhibit A-2
    
    Form of Euro Revolving NoteExhibit A-3
    
    Form of Incremental Term Loan NoteExhibit B
    
    Form of Assignment and AssumptionExhibit C
    
    Form of Guarantee and Collateral AgreementExhibit D
    
    Form of Mortgage
 iv




---



##### 



Agreement Hanover HCLP Borrowers Lenders Administrative Agent
 W I T N E S S E T H
 Existing Credit
Agreement
    Defined Terms.
  ABR 1 2 Prime Rate Federal Funds Effective Rate
 ABR Loans
 Adjusted EBITDA Companies




---



##### 



Adjustment Date
 Administrative Agent
 Affiliate
 Agents
 Aggregate Exposure
 Agreement
 Agreement Currency
 Applicable Margin
 Applicable Margin Certificate
 Applicable Percentage
 Application
 Approved Jurisdiction
 2




---



##### 



Assignee
 Assignment and Assumption
 Available Euro Revolving Commitment
 Available Revolving Commitment
 Available US Revolving Commitment
 Available Foreign Currencies
 Average Life
 Benefitted Lender
 Board
 Borrowers
 Borrowing Date
 Business Day provided
 Calculation Date
 Capital Stock
 3




---



##### 



Cash Equivalents S&P Moodys
 Closing Date
 Code
 Co-Lead Arrangers
 Collateral
 Commitment
 Commitment Fee Rate
 Commonly Controlled Entity
 Conduit Lender provided
 4




---



##### 



provided further
 Consolidated Adjusted EBITDA provided
 Consolidated Earnings Before Interest and Taxes
 Consolidated EBITDA minus
 5




---



##### 



provided that pro forma provided further Designated Distributions
 Consolidated Indebtedness plus
 Consolidated Intangibles
 Consolidated Interest Expense plus minus
 6




---



##### 



Consolidated Lease Expense
 Consolidated Leverage Ratio
 Consolidated Net Income provided
 Consolidated Net Worth
 Consolidated Senior Secured Indebtedness provided
 Consolidated Tangible Net Worth
 Contractual Obligation
 Credit Parties
 7




---



##### 



Default
 Derivatives
 Derivatives Agreement
 Disposition Dispose Disposed of
 Dollar Equivalent
 Dollars $
 EMU
 Environmental Laws
 Equipment Lease Guarantees 2001A Lease
Guarantee 2001B Lease
Guarantee
 Equipment Lease Participation Agreements 2001A Participation Agreement
 8




---



##### 



2001B Participation
Agreement
 Equipment Lease Transactions
 Equipment Leases 2001A Synthetic Lease 2001B
Synthetic Lease Additional Lease
 Equipment True Lease
 ERISA
 Euro 
 Euro Revolving Commitment Euro Revolving Commitments
 Euro Revolving Extensions of Credit
 Euro Revolving Facility
 Euro Revolving Lender provided
 Euro Revolving Loans
 Euro Revolving Note
 9




---



##### 



Euro Revolving Percentage
 Eurocurrency Loans
 Eurocurrency Rate
 Eurocurrency Reserve Requirements
 Eurodollar Base Rate Eurodollar Base Rate
 Eurodollar Loans
 Eurodollar Rate
 10




---



##### 



Eurodollar Base Rate
 Event of Default provided
 Exchange Act
 Exchange Rate provided
 Excluded Unqualified Subsidiary provided
 Existing Credit Agreement
 Existing Issuing Lender
 Existing Letter of Credit
 Facility
 Final Maturity Date
 Financing Lease
 11




---



##### 



GAAP
 Governmental Authority
 Guarantee and Collateral Agreement
 Guarantee Obligation primary obligations primary obligor provided however
 Guarantor
 Hanover
 Hanover 2008 Convertible Notes
 Hanover 2008 Convertible Notes Indenture
 12




---



##### 



Hanover 2010 Senior Notes
 Hanover 2010 Senior Notes Indenture
 Hanover 2014 Convertible Notes
 Hanover 2014 Convertible Notes Indenture
 Hanover 2014 Senior Notes
 Hanover 2014 Senior Notes Indenture
 Hanover Senior Notes Guarantees
 Hanover Zero Coupon Subordinated Notes
 Hanover Zero Coupon Subordinated Notes Indenture
 Hazardous Materials
 HCLP
 Incremental Amount
 Incremental Assumption Agreement
 13




---



##### 



Incremental Term Loan Commitment
 Incremental Term Loan Facility
 Incremental Term Loan Lender
 Incremental Term Loan Maturity Date
 Incremental Term Loan Note
 Incremental Term Loan Percentage
 Incremental Term Loans
 Indebtedness st provided
 indemnified liabilities
 Insolvency
 Insolvent
 Intellectual Property
 14




---



##### 



Interest Payment Date
 Interest Period
   provided
    Investments
 Investors
 Issuing Lender
 Joint Venture
 15




---



##### 



JPMorgan
 Judgment Currency
 L/C Commitment provided
 L/C Fee Payment Date
 L/C Obligations
 L/C Participants
 Lenders
 Lessors
 Letters of Credit
 Lien
 Loan
 Loan Documents
 London Funding Office
 Majority Facility Lenders
 16




---



##### 



Material Adverse Effect
 Material Subsidiary
 Mortgaged Properties
 Mortgages
 Multiemployer Plan
 Net Unqualified Subsidiary Investments
 Non-Excluded Taxes
 Non-U.S. Lender
 Notes
 Obligations
 17




---



##### 



Other Taxes
 Participant
 Participating Member State
 Patriot Act
 PBGC
 Performance Letter of Credit
 Permitted Business Acquisition
 Permitted Unqualified Subsidiary Indebtedness
 Person
 18




---



##### 



Plan
 Pricing Grid
 Properties
 Qualified Subsidiary
  RBS Securities
 Reallocation Option
 Refinanced Incremental Term Loans
 Refinancing Indebtedness provided however
 (i)
    
    the Refinancing Indebtedness has a Stated Maturity no earlier
than 91 days later than the Final Maturity Date;(ii)
    
    the Refinancing Indebtedness has an Average Life at the time
such Refinancing Indebtedness is incurred equal to or greater than the Average
Life of the Indebtedness being refinanced;(iii)
    
    such Refinancing Indebtedness is incurred in an aggregate
principal amount (or if issued with original issue discount, an aggregate
accreted value) that is equal to or less than the sum of the aggregate
principal amount (or if issued with original issue discount, the aggregate
accreted value) then outstanding of the Indebtedness being refinanced (plus,
without duplication, any additional Indebtedness incurred to pay interest or
premiums required by instruments governing such existing Indebtedness and fees
and initial purchase discounts incurred in connection therewith);(iv)
    
    if the Indebtedness being refinanced is subordinated in right
of payment to any of the Obligations, such Refinancing Indebtedness is
subordinated in right of payment to such Obligations on terms at least as
favorable to the Lenders as those contained in the documentation governing the
Indebtedness that is being refinanced; provided, that any (i) any
Refinancing Indebtedness (and Guarantee Obligations in respect of any such
Refinancing Indebtedness) of the 2001A Equipment Lease Transaction, the 2001B
Equipment Lease Transaction, the Hanover 2008 Convertible Notes, the Hanover
2010 Senior Notes, the Hanover
2014 Senior Notes or the Hanover Zero Coupon Subordinated Notes shall not be
 19




---



##### 



required to be subordinated and (ii) the Hanover Senior Notes Guarantees may
be amended to remove the subordination provisions set forth therein;(v)
    
    after giving effect to the incurrence of such Refinancing
Indebtedness, no Default or Event of Default would exist hereunder;(vi)
    
    the obligor(s) of such Refinancing Indebtedness shall be no
different than the obligors of the Indebtedness being refinanced;
provided, that notwithstanding the foregoing, (i) Hanover shall be
permitted to become the obligor of Refinancing Indebtedness in which HCLP, the
equipment trust engaged in the 2001A Equipment Lease Transaction, the equipment
trust engaged in the 2001B Equipment Lease Transaction or any of HCLPs
Subsidiaries was the prior obligor and (ii) HCLP shall be permitted to become
the obligor of Refinancing Indebtedness in which the equipment trust engaged in
the 2001A Equipment Lease Transaction or the equipment trust engaged in the
2001B Equipment Lease Transaction was the prior obligor;(vii)
    
    the terms and conditions of such Refinancing Indebtedness
shall be no less favorable in any material respect than the terms and
conditions of the Indebtedness being refinanced; provided, that it is
understood and agreed that this clause (vii) shall not prohibit any Refinancing
Indebtedness (or Guarantee Obligations in respect thereof) which constitutes
senior unsecured Indebtedness and which is subject to commercially reasonable
terms for high yield public debt securities; and(viii)
    
    the security interest(s) granted in connection with such Refinancing
Indebtedness, if any, shall not cover more collateral, in any material respect,
than the security interest(s), if any, granted in connection with the
Indebtedness being refinanced.
 Register
 Regulation U
 Reimbursement Obligation
 Reorganization
 Replacement Incremental Term Loans
 Reportable Event
 Required Lenders
 20




---



##### 



Requirement of Law
 Reset Date
 Responsible Officer provided
 Restricted Payments
 Restricted Subsidiary
 Revolving Commitments
 Revolving Commitment Period
 Revolving Extensions of Credit
 Revolving Lenders
 Revolving Loans
 Revolving Termination Date
 Sale and Leaseback Transaction
 SEC
 Security Documents
 Single Employer Plan
 21




---



##### 



Stated Maturity
 Subordinated Debt provided
 Subordinated Guarantee Obligation
 Subsidiary
 Subsidiary Guarantor
 TIDES
 TIDES Debentures
 TIDES Declaration of Trust
 TIDES Guarantees
 TIDES Indenture
 22




---



##### 



TIDES Trust
 2001A Equipment Lease Securities 2001A
Equipment Lease Transaction
 2001A Equipment Lease Transaction
 2001B Equipment Lease Securities 2001B
Equipment Lease Transaction
 2001B Equipment Lease Transaction
 Type
 Uniform Customs
 Unqualified Subsidiary
 Unrestricted Subsidiary
 23




---



##### 



provided
 US Revolving Commitment US Revolving
Commitments
 US Revolving Extensions of Credit
 US Revolving Facility
 US Revolving Lenders
 US Revolving Loans
 US Revolving Note
 US Revolving Percentage
 Other Definitional Provisions
  24




---



##### 



Revolving Commitments US Revolving
Loans
 Euro Revolving Loans
  Procedure for Revolving Borrowing provided
 25




---



##### 



provided  
 Incremental Term Loan Commitments Incremental Term Loan
 provided
 provided pro forma pro forma
 26




---



##### 



Interest Rates and Payments Dates
   plus plus plus plus
 provided
 Commitment Fees; Other Fees and Compensation
 27




---



##### 



Termination or Reduction of the Revolving Commitments provided
 Joint and Several Obligation for Repayment of Loans; Optional Prepayments and other
Repayments
  28




---



##### 



 
    Conversion and Continuation Options provided provided
 provided provided further
 29




---



##### 



Minimum Amounts  
 Computation of Interest and Fees
  Inability to Determine Interest Rate
    30




---



##### 



Pro Rata Treatment and Payments provided
   31




---



##### 



Illegality
 Requirements of Law
     32




---



##### 



provided
 Taxes Non-Excluded Taxes provided however
  33




---



##### 



Non-U.S. Lender
 provided
 provided
 34




---



##### 



Indemnity over
 Replacement of Lenders provided
 35




---



##### 



Change of Lending Office provided provided further
 Determination of Dollar Equivalent Reset Date
 Reallocation Option Reallocation Option provided Schedule 3.17 Schedule 3.17 provided
 36




---



##### 



L/C Commitment Letters of
Credit provided
       Procedure for Issuance of Letters of Credit
 Fees, Commissions and Other Charges
 37




---



##### 



L/C Participations
  38




---



##### 



provided however
 Reimbursement Obligation of HCLP
   Obligations Absolute
    39




---



##### 



Letter of Credit Payments
 Application
 Letters of Credit Denominated in Available Foreign Currencies provided provided
 Change in Law; Availability of Foreign Currencies
   Financial Condition
 40




---



##### 



No Change
 Corporate Existence; Compliance with Law
 Corporate Power; Authorization; Enforceable Obligations
 41




---



##### 



No Legal Bar
 No Material Litigation
 No Default
 Ownership of Property; Liens; Leases of Equipment
 Intellectual Property Intellectual
Property
 Taxes
 42




---



##### 



Federal Regulations
 ERISA
 Investment Company Act; Other Regulations
 Subsidiaries
 Purpose of Loans
 43




---



##### 



provided
 Environmental Matters Properties
      44




---



##### 



Accuracy and Completeness of Information provided
 Senior Indebtedness
 Security Documents
  45




---



##### 



Regulation H
  Conditions to Each Extension of Credit
 Representations and Warranties
 No Default
  Conditions to Initial Extension of Credit
 Agreement
 Fees
 Termination of Existing Credit Agreement
 Resolutions
 46




---



##### 



Incumbency Certificate
 Pledged Stock; Stock Powers; Pledged Notes
 Filings, Registrations and Recordings
 Mortgages, etc
   Legal Opinions
 Patriot Act
 47




---



##### 



Financial Statements provided
 Additional Documents
 Additional Matters
   Financial Statements
 provided provided
 provided
 48




---



##### 



provided
  Certificates; Other Information
  provided
  provided
 49




---



##### 



Applicable Margin Certificate
  Payment of Obligations
 Conduct of Business and Maintenance of Existence
 Maintenance of Property; Insurance
   Inspection of Property; Books and Records; Discussions
 Notices
  50




---



##### 



Environmental Laws
   51




---



##### 



Additional Collateral, etc.
 provided
  52




---



##### 



Maintenance of Flood Insurance
   Financial Condition Covenants Consolidated Senior Secured
Indebtedness to Consolidated Adjusted EBITDA
 Fiscal Quarter Ending
    
    RatioDecember 31, 2005 through September 30, 2007
    
    5.00 to 1.0December 31, 2007 through September 30, 2008
    
    4.50 to 1.0December 31, 2008 and thereafter
    
    4.00 to 1.0
 Minimum Consolidated Tangible Net Worth
 Consolidated Indebtedness to Consolidated EBITDA Consolidated
Leverage Ratio
 53




---



##### 



Fiscal Quarter Ending
    
    RatioDecember 31, 2005 through September 30, 2007
    
    6.00 to 1.0December 31, 2007 through September 30, 2008
    
    5.50 to 1.0December 31, 2008 and thereafter
    
    5.00 to 1.0
 Interest Coverage Ratio
 Limitation on Indebtedness
    provided
  Permitted Unqualified Subsidiary
Indebtedness
 provided
   provided
 54




---



##### 



Limitation on Liens
 provided
        55




---



##### 



provided provided further
  provided
   provided
  56




---



##### 



Limitation on Guarantee Obligations
  provided
  provided
  provided
   57




---



##### 



Limitations on Fundamental Changes
 provided
 provided
  provided
      Limitation on Sale or Lease of Assets
 58




---



##### 



provided
 provided
    provided provided further
 provided
   provided
 59




---



##### 



provided further
  Limitation on Leases
 Limitation on Dividends Restricted Payments
 Limitation on Derivatives provided
 Limitation on Investments, Loans and Advances Investments
    60




---



##### 



provided
   61




---



##### 



Limitation on Optional Payments and Modifications of Debt Instruments
 62




---



##### 



provided
 provided
 Transactions with Affiliates
 Sale and Leaseback Sale and Leaseback Transaction
 Fiscal Year
 Nature of Business 63
        Unqualified Subsidiaries
 Negative Pledge Clauses provided provided
 Clauses Restricting Subsidiary Distributions provided 64
      65
      66
      Exchange Act
 provided
   67
      Appointment
 Delegation of Duties
 Exculpatory Provisions
 Reliance by Administrative Agent
 68
      Notice of Default
 Non-Reliance on Administrative Agent and Other Lenders
 Indemnification
 69
      provided
 Administrative Agent in Its Individual Capacity
 Successor Administrative Agent
  Amendments and Waivers provided however 70
        Refinanced Incremental Term
Loans Replacement Incremental Term
Loans provided
 Notices
 Hanover and HCLP:
    
    Hanover Compressor Company12001 North Houston-RosslynHouston, Texas 77086Attention: Chief Financial OfficerTelecopy: (713) 447-8781The Administrative Agent:Domestic Funding Office:
    
    JPMorgan Chase Bank, N.A.Loan and Agency Services Group1111 Fannin, 10th FloorHouston, TX 77002Attention: Janene EnglishTelephone: (713) 750-2501Telecopy: (713) 427-6307with a copy to:
    
    JPMorgan Chase Bank, N.A.600 Travis St., 20th Floor
 71
      Houston, TX 77002Attention: June BrandTelephone: (713) 216-4327Telecopy: (713) 216-4117London Funding Office:
    
    J. P. Morgan Europe LimitedLoan & Agency Services, 9th Floor125 London WallLondon EC2Y 5AJUnited KingdomAttention: The Manager, Loan & Agency ServicesTelephone: 44-207-777-2355Telecopy: 44-207-777-2360/2085Issuing Lender (JPMorgan):
    
    JPMorgan Chase Bank, N.A.1111 Fannin, 10th FloorHouston, TX 77002Attention: Rosalyn JacksonTelephone: (713) 750-2424Telecopy: (713) 427-6307with a copy to:
    
    JPMorgan Chase Bank, N.A.10420 Highland Manor Drive, Floor 4Tampa, FL 33610Attention: James AlonzoTelephone: 813-432-6339Telecopy: 813-432-5161Issuing Lender (RBS):
    
    The Royal Bank of Scotland plc101 Park AvenueNew York, NY 10178Attention: Celeste LindseyTelephone: 212-401-3411Telecopy: 212-401-1494
 provided provided
 No Waiver; Cumulative Remedies
 72
      Survival of Representations and Warranties
 Payment of Expenses and Taxes indemnified liabilities provided
 Successors and Assigns; Participations and Assignments
 Assignee
 73
      provided
 provided
  provided
 provided
    Approved Fund
  74
      Register
  Participant provided provided
  75
      provided
  provided
 Adjustments; Set-off Benefited Lender
  76
        Counterparts
 Severability
 Integration
 11.11 GOVERNING LAW THIS AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK
 Submission To Jurisdiction; Waivers
     77




---



##### 



Acknowledgments
    11.14 WAIVERS OF JURY TRIAL . EACH OF HANOVER, HCLP, THE ADMINISTRATIVE AGENT AND
THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR THE NOTES OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.
 Judgment
 Judgment Currency Agreement Currency
 Usury
 78




---



##### 



Conflicts
 Releases of Guarantees and Liens
  Confidentiality
 79




---



##### 



Patriot Act Notice Patriot
Act
 Waiver under Existing Credit Agreement provided
 True Up
 80




---



##### 



HANOVER COMPRESSOR COMPANYBy:
    
    /s/   LEE E. BECKELMANName: Lee E. BeckelmanTitle: Senior Vice President and Chief Financial OfficerHANOVER COMPRESSION LIMITED PARTNERSHIPBy:
    
    /s/    LEE E. BECKELMANName: Lee E. BeckelmanTitle: Senior Vice President and Chief Financial OfficerJPMORGAN CHASE BANK, N.A., as Administrative Agent, US
Revolving Lender and Euro Revolving LenderBy:
    
    /s/    ROBERT W. TRABANDName: Robert W. TrabandTitle: Vice PresidentTHE ROYAL BANK OF SCOTLAND PLC, as Syndication Agent, US
Revolving Lender and Euro Revolving LenderBy:
    
    /s/    KEITH JOHNSONName: Keith JohnsonTitle: Managing Director
 Signature Page to Hanover Credit Agreement




---



##### 



FORTIS BANK, as US Revolving Lender and Euro Revolving LenderBy:
    
    /s/   TROND ROKHOLTName:   Trond RokholtTitle:     Managing DirectorBy:
    
    /s/   JOSEPH MAXWELLName:   Joseph MaxwellTitle:     Senior Vice President
 Signature Page to Hanover Credit Agreement




---



##### 



WELLS FARGO BANK, N.A., as US Revolving Lender and Euro
Revolving LenderBy:
    
    /s/   PHILIP C. LAUINGER IIIName:   Philip C. Lauinger IIITitle:     Vice President
 Signature Page to Hanover Credit Agreement




---



##### 



DEUTSCHE BANK AG, NEW YORK BRANCH, as US Revolving Lender and
Euro Revolving LenderBy:
    
    /s/   OMAYRA LAUCELLAName:   Omayra LaucellaTitle:     Vice PresidentBy:
    
    /s/   SUSAN LEFEVREName:   Susan LeFevreTitle:     Director
 Signature Page to Hanover Credit Agreement




---



##### 



CITICORP NORTH AMERICA, INC., as US Revolving Lender and Euro Revolving LenderBy:
    
    /s/     SHIRLEY E. BURROWName:
    
    Shirley E. BurrowTitle:
    
    Vice President
 Signature Page to Hanover Credit Agreement




---



##### 



NATEXIS BANQUES POPULAIRES, as US Revolving LenderBy:
    
    /s/     DONOVAN C. BROUSSSARDName:
    
    Donovan C. BroussardTitle:
    
    Vice President and Group ManagerBy:
    
    /s/     LOUIS P. LAVILLE, IIIName:
    
    Louis P. Laville, IIITitle:
    
    Vice President and Group Manager
 Signature Page to Hanover Credit Agreement




---



##### 



WACHOVIA BANK, NATIONAL ASSOCIATION, as US Revolving Lender
and Euro Revolving LenderBy:
    
    /s/     DAVID HUMPHREYSName:
    
    David HumphreysTitle:
    
    Director
 Signature Page to Hanover Credit Agreement




---



##### 



CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as US Revolving Lender
and Euro Revolving LenderBy:
    

/s/ VANESSA GOMEZ     /s/ DAVID DODDName:
    
    Vanessa Gomez                    David DoddTitle:
    
    Vice President                       Vice President
 Signature Page to Hanover Credit Agreement




---



##### 



THE BANK OF NOVA SCOTIA, as US Revolving Lender and Euro
Revolving LenderBy:
    
    /s/     N. BELLName:
    
    N. BellTitle:
    
    Senior Manager
 Signature Page to Hanover Credit Agreement




---



##### 



MORGAN STANLEY BANK, as US Revolving Lender and Euro
Revolving LenderBy:
    
    /s/     DANIEL TWENGEName:
    
    Daniel TwengeTitle:
    
    Vice President
 Signature Page to Hanover Credit Agreement




---



##### 



SUNTRUST BANK, as US Revolving Lender and Euro Revolving LenderBy:
    /s/  KELLEY BRUNSONName:
    Kelley BrunsonTitle:
    Vice President Signature Page to Hanover Credit Agreement




---



##### 



NATIONAL CITY BANK, as US Revolving Lender and Euro Revolving LenderBy:
    /s/  TOM GURBACHName:
    Tom GurbachTitle:
    Vice President Signature Page to Hanover Credit Agreement




---



##### 



CALYON NEW YORK BRANCH, as US Revolving Lender and Euro Revolving LenderBy:
    /s/   PAGE DILLEHUNTName:
    Page DillehuntTitle:
    Director By:
    /s/   MICHAEL WILLISName:
    Michael WillisTitle:
    Director Signature Page to Hanover Credit Agreement




---



##### 



BANK OF AMERICA, N.A., as US Revolving Lender and Euro Revolving LenderBy:
    /s/  CLAIRE M. LIUName:
    Claire M. LiuTitle:
    Senior Vice President Signature Page to Hanover Credit Agreement




---



##### 



US Revolving Facility and Euro Revolving Facility
 US RevolvingFacility and EuroApplicable Margin-
    
    
    
    
    
    RevolvingRevolving Loans and
    
    
    
    
    
    Facility-Consolidated Leverage
    
    Eurocurrency Revolving
    
    Applicable Margin-
    
    Commitment FeeRatio
    
    Loans
    
    Base Rate Loans
    
    Rate>5.75 to 1.0
    
    
    2.500
    %
    
    
    1.500
    %
    
    
    0.500
    %£5.75 to 1.0 and>5.25 to 1.0
    
    
    2.000
    %
    
    
    1.000
    %
    
    
    0.500
    %£5.25 to 1.0 and>4.75 to 1.0
    
    
    1.750
    %
    
    
    0.750
    %
    
    
    0.375
    %£4.75 to 1.0 and>4.25 to 1.0
    
    
    1.625
    %
    
    
    0.625
    %
    
    
    0.375
    %£4.25 to 1.0 and>3.75 to 1.0
    
    
    1.500
    %
    
    
    0.500
    %
    
    
    0.375
    %£3.75 to 1.0
    
    
    1.375
    %
    
    
    0.375
    %
    
    
    0.375
    %
 Adjustment Date




---



##### 



LC Number
    
    Expiration
    
    Amount
        
    LC Number
    
    Expiration
    
    Amount
        
    LC Number
    
    Expiration
    
    Amount6216995
    
    21-May-06
    
    
    103,877.00
    
    
    P246832
    
    28-Feb-06
    
    
    536,764.22
    
    
    TPTS671366
    
    01-Apr-06
    
    
    2,350,000.006216996
    
    21-May-06
    
    
    120,875.00
    
    
    P246979
    
    31-Dec-05
    
    
    241,060.00
    
    
    TPTS671643
    
    05-May-06
    
    
    82,055.266218929
    
    27-Jul-06
    
    
    308,303.00
    
    
    P246980
    
    31-Dec-05
    
    
    1,500,000.00
    
    
    TPTS672052
    
    30-Sep-06
    
    
    333,850.006220220
    
    12-Aug-06
    
    
    123,185.00
    
    
    P247675
    
    28-Mar-06
    
    
    255,655.90
    
    
    TPTS672135
    
    31-May-06
    
    
    3,400,000.006220434
    
    27-Jul-06
    
    
    21,406.00
    
    
    P248188
    
    28-Feb-06
    
    
    457,708.16
    
    
    TPTS672388
    
    15-Jun-06
    
    
    193,721.006221340
    
    01-Jan-06
    
    
    2,500,000.00
    
    
    P248190
    
    07-May-06
    
    
    356,000.00
    
    
    TPTS672993
    
    23-Oct-06
    
    
    45,569.606221457
    
    30-Oct-06
    
    
    2,518,300.00
    
    
    P248782
    
    19-Dec-05
    
    
    3,375,430.29
    
    
    TPTS673338
    
    09-Jun-06
    
    
    1,536,175.206225289
    
    01-Nov-06
    
    
    5,150,000.00
    
    
    P249012
    
    13-Apr-06
    
    
    172,125.00
    
    
    TPTS673524
    
    30-Jun-06
    
    
    3,731,310.80P200359
    
    25-Nov-06
    
    
    83,242.00
    
    
    P250034
    
    11-Dec-05
    
    
    266,878.30
    
    
    TPTS673526
    
    31-Jan-06
    
    
    55,398.12P201169
    
    21-Jul-06
    
    
    34,355.00
    
    
    P250131
    
    30-Nov-05
    
    
    2,168,153.60
    
    
    TPTS673535
    
    15-Feb-06
    
    
    60,000.00P201738
    
    30-Dec-05
    
    
    2,000,000.00
    
    
    P250378
    
    31-Jan-06
    
    
    1,355,338.85
    
    
    TPTS673540
    
    26-Feb-06
    
    
    291,079.00P203852
    
    21-Jul-06
    
    
    50,487.00
    
    
    P293592
    
    13-Jul-06
    
    
    853,272.00
    
    
    TPTS674105
    
    29-Dec-06
    
    
    52,712.50P205023
    
    02-Feb-06
    
    
    2,124,386.84
    
    
    P295860
    
    09-Sep-06
    
    
    170,937.00
    
    
    TPTS674114
    
    30-Dec-05
    
    
    50,667.17P205945
    
    30-Sep-06
    
    
    795,000.00
    
    
    P612882
    
    01-Feb-06
    
    
    989,340.00
    
    
    TPTS674191
    
    09-Jan-06
    
    
    326,132.04P205992
    
    28-Sep-06
    
    
    1,505,000.00
    
    
    P612885
    
    11-Jan-06
    
    
    266,638.23
    
    
    TPTS674231
    
    15-Jan-06
    
    
    344,026.90P215543
    
    21-Jul-06
    
    
    63,000.00
    
    
    P613138
    
    31-Jan-06
    
    
    322,824.64
    
    
    TPTS674242
    
    15-May-06
    
    
    1,530,750.00P216377
    
    10-Aug-06
    
    
    150,000.00
    
    
    P614199
    
    15-Aug-06
    
    
    75,738.52
    
    
    TPTS674665
    
    28-Feb-06
    
    
    6,857.25P229481
    
    14-Jan-06
    
    
    59,174.34
    
    
    P615518
    
    13-Jun-06
    
    
    1,000,000.00
    
    
    TPTS674735
    
    31-Jan-06
    
    
    50,000.00P230918
    
    19-Jul-06
    
    
    140,000.00
    
    
    P615623
    
    30-Jul-06
    
    
    126,427.45
    
    
    TPTS674928
    
    28-Mar-06
    
    
    1,010,000.00P234809
    
    23-Apr-06
    
    
    10,630,000.00
    
    
    P670231
    
    15-Jun-06
    
    
    48,024.60
    
    
    TPTS674929
    
    17-Feb-06
    
    
    600,000.00P237502
    
    16-May-06
    
    
    3,500,000.00
    
    
    P670742
    
    30-Sep-06
    
    
    845,000.00
    
    
    TPTS674933
    
    12-Feb-06
    
    
    80,000.00P237974
    
    15-May-06
    
    
    212,000.00
    
    
    P671009
    
    30-May-06
    
    
    241,000.00
    
    
    TPTS675045
    
    30-Aug-06
    
    
    119,987.60P238562
    
    30-Oct-05
    
    
    73,313.00
    
    
    P695209
    
    30-Nov-05
    
    
    2,581,596.00
    
    
    TPTS675277
    
    31-Aug-06
    
    
    794,037.60P238651
    
    02-Jul-06
    
    
    179,475.45
    
    
    P695394
    
    01-Nov-05
    
    
    185,637.49
    
    
    TPTS675355
    
    21-Dec-06
    
    
    1,039,889.08P238653
    
    02-Jul-06
    
    
    46,972.85
    
    
    P695964
    
    17-Jan-06
    
    
    81,690.00
    
    
    TPTS675545
    
    30-Jan-06
    
    
    900,000.00P238962
    
    31-Jan-06
    
    
    75,258.07
    
    
    P696062
    
    29-Dec-06
    
    
    399,932.00
    
    
    TPTS675552
    
    31-Jan-06
    
    
    135,000.00P239571
    
    30-Jun-06
    
    
    410,000.00
    
    
    P696262
    
    31-May-06
    
    
    7,914,720.00
    
    
    TPTS675556
    
    28-Mar-06
    
    
    260,580.40P240209
    
    26-Jan-06
    
    
    834,060.00
    
    
    P696858
    
    19-Dec-05
    
    
    1,322,615.77
    
    
    TPTS675560
    
    24-Apr-06
    
    
    3,097,417.50P241242
    
    20-Sep-06
    
    
    12,000,000.00
    
    
    TBTI673395
    
    27-Jan-06
    
    
    2,580,000.00
    
    
    TPTS675564
    
    10-May-06
    
    
    1,032,472.50P242798
    
    24-Nov-06
    
    
    61,700.00
    
    
    TBTI675304
    
    21-Jan-06
    
    
    164,072.51
    
    
    TPTS675661
    
    23-Jun-06
    
    
    1,000,000.00P244546
    
    11-Mar-06
    
    
    3,999,800.00
    
    
    TBTI675304
    
    
    
    
    54,690.84
    
    
    TPTS675747
    
    12-Feb-06
    
    
    80,000.00P246431
    
    30-Nov-05
    
    
    1,195,122.72
    
    
    TBTI675304
    
    
    
    
    328,145.01
    
    
    TPTS676013
    
    28-Feb-06
    
    
    300,000.00P246432
    
    31-Jan-06
    
    
    1,441,920.00
    
    
    TPTS670027
    
    30-Sep-06
    
    
    1,081,400.00
    
    
    TPTS676301
    
    13-Nov-06
    
    
    207,600.00P246831
    
    20-May-06
    
    
    368,100.44
    
    
    TPTS670671
    
    01-Apr-06
    
    
    5,311,200.00
    
    
    TPTS676328
    
    01-Aug-06
    
    
    6,159,204.40