Document:

exv10w1

 

Exhibit 10.1

April 9, 2004

Mr. Gary Wilson

Pilton House,

Pilton,

Somerset BA 44DD

UK

Dear Gary:

I am pleased to offer you the position of General Counsel in the Legal group.
I am confident that your joining The Hanover Compressor Company (“Hanover”)
will prove to be mutually rewarding.

Your initial base compensation will be $10,576.93 bi-weekly, (which is
$275,000.00 on an annualized basis).

In addition, you are eligible for participation in a Hanover annual incentive
Plan. The target incentive payment for this position is 0 — 50% percent of your
base salary earned for the current calendar year. Payment under the incentive
plan is determined based upon Hanover’s performance, as well as your individual
performance throughout the year, and other business factors. You must be an
active employee on the date the plan is distributed to receive payment under
the plan. Hanover reserves the right to amend or terminate the incentive plan
programs at any time. I have also attached a summary of the other terms we
have agreed to with regards to your employment.

As you know, Hanover offers a comprehensive range of benefits, including a
401(k) Plan, medical, dental and other benefit plans and programs. Enclosed
with this letter is a Benefit Summary, outlining those programs for which you
will be eligible to participate in upon completion of any waiting periods.
You will be eligible for four (4) weeks vacation annually (pro-rated for
2004). If you have any questions regarding these benefits, please feel free
to contact Hilary Ware, VP of Human Resources, at 281-554-4943.

This offer of employment is conditioned on the completion of a background
investigation and drug screen prior to your beginning employment. Shirley
Morris, Manager of HR Services, will coordinate all the necessary paperwork so
that we can complete the background and new hire documentation. If you have
any questions regarding this information you may contact Shirley at
281-405-2639.

While this letter is a confirmation of our offer of your employment and
compensation, it is not meant to imply or constitute an employment contract
for a specific term of employment. We can make no guarantees as to the length
or terms of your employment. This will be an at-will employment relationship.
This means that both you and the Company are free to terminate the
relationship for any reason at any time, with or without cause. No one from
the Company will have authority to alter the at-will nature of this
relationship except through a written contract signed by you and an officer of
Hanover that expressly agrees to modify the at-will relationship.

 

 

I am confident that our organization will benefit from the numerous
contributions you will make to Hanover’s continuing success. Your signature
below indicates that you understand and are willing to accept employment on
the terms and conditions identified above. You also acknowledge that this
letter contains all of the material terms and conditions of employment that
you will use to make your decision and that you have not relied on any other
agreements, assurances, representations or promises as the basis for your
decision to accept the job as offered.

This offer is valid until two (2) weeks from the date of this letter and must
be signed and returned to this office by that date.

Gary, we are embarking on a highly challenging period in Hanover and welcome
your skills and capabilities in helping us meet our business goals. In the
meantime, if you have any questions or need additional assistance, please feel
free to contact me.

Sincerely,

/s/ CHAD DEATON

Chad Deaton

Chief Executive Officer

I ACCEPT EMPLOYMENT ON THE ABOVE REFERENCED TERMS:

Employee Signature: 
          /s/ GARY M. WILSON    
                 
                   
    Date:     20/APRIL/04

Starting Date:            May 15, 2004

Attachment:

Term Sheet Gary M. Wilson

 

 

Term Sheet

Gary M. Wilson

	 	 	 
	Effective Date

	 	May 15, 2004
	 
	Base Salary

	 	$275,000
	 
	Target Bonus

	 	50%
	 
	Sign-on Bonus

	 	$60,000 (includes $10,000 relocation payment)
	 
	Stock (to be priced at

	 	8756 shares restricted stock
	May 20, 2004 Board
Meeting)

	 	11,244 non qualified options
	 
	Schooling

	 	$40,000 per year for 2 years followed by $20,000
per year for two years (subject to review of
tuition rates) grossed up at 30% rate.
	 
	Closing Costs in US

	 	Reimbursement of customary closing costs on
home in Houston
	 
	Return Trip

	 	One full economy return ticket for the family to
Point of origin (UK) per year.
	 
	Change of Control

	 	1 1/2 X base plus target bonus in accordance with
Hanover change of control provisions.
Accelerated vesting of all long term incentives
and accelerated vesting of 401k plan in case of
Change of control.
	 
	Tax Preparation

	 	Tax preparation for year 1
	 
	Partial Household Goods Shipment

	 	At the point a partial household goods shipment
needs to be made in the next couple of years, we
cover the shipment.<PAGE>
                                                                  EXHIBIT 10.N.1
                               TERM LOAN ADDENDUM

                      FOR SERIES B-2 ADDITIONAL TERM LOANS

         Pursuant to subsection 2.1(c) of the Seventh Amended and Restated
Credit Agreement, dated as of March 23, 1995, as amended and restated through
September 26, 2003, among GulfTerra Energy Partners, L.P., a Delaware limited
partnership (the "Borrower"), GulfTerra Energy Finance Corporation, a Delaware
corporation (the "Co-Borrower"), the several banks and other financial
institutions from time to time parties thereto (the "Lenders"), and JPMorgan
Chase Bank, as administrative agent (the "Administrative Agent"), as amended by
that certain First Amendment to Seventh Amended and Restated Credit Agreement
dated as of December 1, 2003, by and among the Borrower, the Co-Borrower, the
Lenders parties thereto and the Administrative Agent and that certain Second
Amendment to Seventh Amended and Restated Credit Agreement dated as of April 23,
2004 (as so amended, the "Credit Agreement"), the undersigned hereby execute
this Term Loan Addendum dated as of May 20, 2004 (this "Addendum"). Capitalized
terms used herein and not defined herein shall have the meanings assigned to
such terms in the Credit Agreement.

         In consideration of the premises and the mutual covenants contained
herein, the parties hereto hereby agree as follows:

         1. Subject to the terms and conditions hereof and in the Credit
Agreement, each Additional Term Loan Lender party to this Addendum agrees to
make, on the Additional Term Loan Closing Date, term loans (the "Series B-2
Additional Term Loans") to the Borrower in an aggregate principal amount not to
exceed such Lender's Additional Term Loan Commitment set forth on Schedule I
attached hereto under the heading "Series B-2 Additional Term Loan Commitment".
Once repaid, the Series B-2 Additional Term Loans may not be reborrowed.

         2. The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Additional Term Loan Lender party
to this Addendum (a) in semi-annual installments beginning on the date six
months following the Additional Term Loan Closing Date for the Series B-2
Additional Term Loans and ending on the date that is the third anniversary
following the Additional Term Loan Closing Date, an amount equal to $1,000,000
for each installment and (b) the then unpaid principal amount of each Series B-2
Additional Term Loan on the Additional Term Loan Maturity Date (as defined
below).

         3. The "Applicable Margin" for the Series B-2 Additional Term Loans
shall be on any day and with respect to any Series B-2 Additional Term Loans
that are Alternate Base Rate Loans, 1.25% per annum and for any Series B-2
Additional Term Loans that are Eurodollar Loans, 2.25% per annum.

         4. The "Additional Term Loan Maturity Date" for the Series B-2
Additional Term Loans shall be October 11, 2007.

         5. The "Additional Term Loan Closing Date" for the Series B-2
Additional Term Loans shall be the date on which the conditions set forth in
Section 6.3 of the Credit Agreement are first satisfied or waived in respect of
the Series B-2 Additional Term Loans, which shall occur on or prior to May 25,
2004.

                                     Page 1
                    SERIES B-2 ADDITIONAL TERM LOAN ADDENDUM
<PAGE>

         6. Each Additional Term Loan Lender party to this Addendum hereby
acknowledges that it has received and reviewed a copy (in execution form) of the
Credit Agreement, and agrees, effective as of the Additional Term Loan Closing
Date, to:

                  (a) join the Credit Agreement as an Additional Term Loan
Lender thereunder;

                  (b) be bound by all the terms in the Credit Agreement, other
Loan Documents existing as of the date hereof and any other Loan Document to
which it is a party; and

                  (c) perform all obligations required of it by the Credit
Agreement and any other Loan Document to which it is a party, including, if it
is organized under the laws of a jurisdiction outside the United States, its
obligation pursuant to Section 4.10 of the Credit Agreement to deliver the forms
prescribed by the Internal Revenue Service of the United States certifying as to
such Additional Term Loan Lender's exemption from United States withholding
taxes with respect to all payments to be made to such Additional Term Loan
Lender under the Credit Agreement, or such other documents as are necessary to
indicate that all such payments are subject to such tax at a rate reduced by an
applicable tax treaty.

         7. Subject to Article X of the Credit Agreement, each Additional Term
Loan Lender party to this Addendum hereby irrevocably designates and appoints
JPMorgan as the Administrative Agent of such Lender under the Credit Agreement,
this Addendum and the other Loan Documents, and each such Lender irrevocably
authorizes JPMorgan, as the Administrative Agent for such Lender, to take such
action on its behalf under the provisions of the Credit Agreement, this Addendum
and the other Loan Documents and to exercise such powers and perform such duties
as are expressly delegated to the Administrative Agent by the terms of the
Credit Agreement, this Addendum and the other Loan Documents, together with such
other powers as are reasonably incidental thereto.

         8. Subject to Article XII of the Credit Agreement, each Additional Term
Loan Lender party to this Addendum hereby irrevocably designates and appoints
JPMorgan as the Collateral Agent of such Lender under the Credit Agreement, this
Addendum and the other Loan Documents, and each such Lender irrevocably
authorizes JPMorgan, as the Collateral Agent for such Lender, to take such
action on its behalf under the provisions of the Credit Agreement, this Addendum
and the other Loan Documents and to exercise such powers and perform such duties
as are expressly delegated to the Collateral Agent by the terms of the Credit
Agreement, this Addendum and the other Loan Documents, together with such other
powers as are reasonably incidental thereto.

         9. Each Additional Term Loan Lender party to this Addendum hereby
consents and agrees (i) to the provisions of the Intercreditor Agreement,
including the indemnity provisions set forth in Section 6 thereof and (ii) that
the address for notices under Section 11.2 of the Credit Agreement to such
Additional Term Loan Lender is specified in Schedule I attached hereto.

         10. THIS ADDENDUM AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS ADDENDUM SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

                                     Page 2
                    SERIES B-2 ADDITIONAL TERM LOAN ADDENDUM

<PAGE>
         11. This Addendum may be executed by one or more of the parties to this
Addendum on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set
of the copies of this Addendum signed by all the parties shall be lodged with
the Borrower and the Administrative Agent.

                      [Signature Pages Begin on Next Page]

                                     Page 3
                    SERIES B-2 ADDITIONAL TERM LOAN ADDENDUM

<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Addendum as of
the 20th day of May, 2004.

                                            BORROWER:

                                            GULFTERRA ENERGY PARTNERS, L.P.

                                            By:    /s/ William G. Manias
                                               ---------------------------------
                                            Name:  William G. Manias
                                            Title: Chief Financial Officer

                                            CO-BORROWER:

                                            GULFTERRA ENERGY FINANCE CORPORATION

                                            By:    /s/ William G. Manias
                                               ---------------------------------
                                            Name:  William G. Manias
                                            Title: Chief Financial Officer

                                            ADMINISTRATIVE AGENT:

                                            JPMORGAN CHASE BANK,
                                            as Administrative Agent

                                            By:    /s/ Robert W. Traband
                                               ---------------------------------
                                            Name:  Robert W. Traband
                                            Title  Vice President

                                Signature Page 1
                    SERIES B-2 ADDITIONAL TERM LOAN ADDENDUM

<PAGE>

SERIES B-2 ADDITIONAL TERM LOAN LENDERS:

                                            JPMORGAN CHASE BANK

                                            By:    /s/ Robert W. Traband
                                                --------------------------------
                                            Name:  Robert W. Traband
                                            Title: Vice President

                                Signature Page 2
                    SERIES B-2 ADDITIONAL TERM LOAN ADDENDUM

<PAGE>
                                            SUNTRUST BANK

                                            By:    /s/ Mary Crawford Taylor
                                                --------------------------------
                                            Name:  Mary Crawford Taylor
                                            Title: Vice President

                                Signature Page 3
                    SERIES B-2 ADDITIONAL TERM LOAN ADDENDUM

<PAGE>
                        SCHEDULE I TO TERM LOAN ADDENDUM
                      FOR SERIES B-2 ADDITIONAL TERM LOANS

    SERIES B-2 ADDITIONAL TERM LOAN LENDERS, SERIES B-2 ADDITIONAL TERM LOAN
           COMMITMENTS AND ADDITONAL TERM LOAN COMMITMENT PERCENTAGES

<Table>
<CAPTION>
--------------------------------------------------------------------------------
                                                       SERIES B-2
  SERIES B-2 ADDITIONAL           SERIES B-2         ADDITIONAL TERM
  TERM LOAN LENDER NAME         ADDITIONAL TERM      LOAN COMMITMENT
 AND ADDRESS FOR NOTICES        LOAN COMMITMENT        PERCENTAGE
--------------------------------------------------------------------------------
<S>                               <C>                     <C>
JPMORGAN CHASE BANK               $100,000,000            50.00%
600 Travis - 20th Floor
Houston, Texas 77002
Attention: Robert Traband
Telephone: 713-216-1081
Fax:       713-216-8870

with a copy to:

J.P. Morgan Securities Inc.
600 Travis, CTH/86
Houston, TX 77002
Attention: George Serice
Telephone: 713-216-8079
Fax:       713-216-4583
--------------------------------------------------------------------------------
SUNTRUST BANK
303 Peachtree Street N.E.
10th Floor, MC 1929
Atlanta, Georgia 30308
Attention: Joe McCreery
Telephone: 404-532-0274
Fax:       404-827-6270           $100,000,000            50.00%
--------------------------------------------------------------------------------
                           TOTAL  $200,000,000.00        100.0000%
--------------------------------------------------------------------------------
</Table>

                             Page 1 of Schedule I to
                    SERIES B-2 ADDITIONAL TERM LOAN ADDENDUM

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