Document:

exv10w4

 

EXHIBIT
10.4

US GUARANTY AGREEMENT 

Dated as of

August 20, 2007

made by

Exterran, Inc.,

EI Leasing LLC,

UCI MLP LP LLC

and

Exterran Energy Solutions, L.P.,

as Guarantors

and

each of the other Guarantors (as defined herein)

in favor of

WACHOVIA BANK, NATIONAL ASSOCIATION,

as US Administrative Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I Definitions
	 	 	1	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Rules of Interpretation
	 	 	3	 
	ARTICLE II Guarantee
	 	 	3	 
	Section 2.01 Guarantee
	 	 	3	 
	Section 2.02 Right of Contribution
	 	 	4	 
	Section 2.03 No Subrogation
	 	 	4	 
	Section 2.04 Amendments, Etc. with respect to the Guarantor Obligations
	 	 	5	 
	Section 2.05 Waivers
	 	 	5	 
	Section 2.06 Guaranty Absolute and Unconditional
	 	 	6	 
	Section 2.07 Reinstatement
	 	 	7	 
	Section 2.08 Payments
	 	 	8	 
	ARTICLE III Representations and Warranties
	 	 	8	 
	Section 3.01 Representations in Credit Agreement
	 	 	8	 
	Section 3.02 Benefit to the Guarantor
	 	 	8	 
	Section 3.03 Solvency
	 	 	8	 
	ARTICLE IV Covenants
	 	 	8	 
	Section 4.01 Covenants in Credit Agreement
	 	 	9	 
	ARTICLE V The US Administrative Agent
	 	 	9	 
	Section 5.01 Authority of US Administrative Agent
	 	 	9	 
	ARTICLE VI Subordination of Indebtedness
	 	 	9	 
	Section 6.01 Subordination of All Guarantor Claims
	 	 	9	 
	Section 6.02 Claims in Bankruptcy
	 	 	9	 
	Section 6.03 Payments Held in Trust
	 	 	10	 
	Section 6.04 Liens Subordinate
	 	 	10	 
	Section 6.05 Notation of Records
	 	 	10	 
	ARTICLE VII Miscellaneous
	 	 	11	 
	Section 7.01 Waiver
	 	 	11	 
	Section 7.02 Notices
	 	 	11	 
	Section 7.03 Amendments in Writing
	 	 	11	 
	Section 7.04 Successors and Assigns
	 	 	11	 
	Section 7.05 Survival; Revival; Reinstatement
	 	 	11	 
	Section 7.06 Counterparts; Integration; Effectiveness; Conflicts
	 	 	12	 
	Section 7.07 Severability
	 	 	12	 
	Section 7.08 Set-Off
	 	 	13	 
	Section 7.09 Governing Law; Submission to Jurisdiction
	 	 	13	 
	Section 7.10 Headings
	 	 	14	 
	Section 7.11 Acknowledgments
	 	 	14	 
	Section 7.12 Additional Guarantors
	 	 	15	 
	Section 7.13 Acceptance
	 	 	15	 

- i -

 

ANNEXES:

I       Form of Assumption Agreement

SCHEDULES:

1       Notice Addresses of Guarantors

- ii -

 

     This US GUARANTY AGREEMENT is dated as of August 20, 2007 made by EXTERRAN, INC. (formerly,
Universal Compression Inc.), a Texas corporation (“EI”), EI LEASING LLC (formerly, UCI
Leasing LLC), a Delaware limited liability company (“EI Leasing”), UCI MLP LP LLC, a
Delaware limited liability company (“MLP LP”), EXTERRAN ENERGY SOLUTIONS, L.P. (formerly,
Hanover Compressor Limited Partnership), a Delaware limited partnership (“EES”) and each of
the Subsidiary Guarantors that become a party hereto from time to time after the date hereof
(together with EI, EI Leasing, MLP LP and EES, the “Guarantors”), in favor of Wachovia
Bank, National Association, as the administrative agent (in such capacity, together with its
successors in such capacity, the “US Administrative Agent”), for the banks and other
financial institutions (the “Lenders”) from time to time parties to the Senior Secured
Credit Agreement dated August 20, 2007 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among Exterran Holdings, Inc., a Delaware corporation (the
“US Borrower”); Exterran Canada, Limited Partnership, a Nova Scotia limited partnership
(the “Canadian Borrower” and together with the US Borrower, the “Borrowers”); the
Lenders, the Administrative Agents and the other Agents party thereto.

R E C I T A L S

     A. The Borrowers have requested that the Lenders provide certain loans to and extensions of
credit on behalf of the Borrowers.

     B. The Lenders have agreed to make such loans and extensions of credit subject to the terms
and conditions of the Credit Agreement.

     C. It is a condition precedent and a continuing covenant to the obligation of the Lenders to
make their loans and extensions of credit to the Borrowers under the Credit Agreement that the
Guarantors shall have executed and delivered this Agreement to the US Administrative Agent for the
ratable benefit of the Guaranteed Creditors.

     D. NOW, THEREFORE, in consideration of the premises herein and to induce the US Administrative
Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders and Guaranteed
Creditors to make their respective extensions of credit to the Borrowers thereunder and in
connection therewith, the parties hereto agree as follows:

ARTICLE I

Definitions

     Section 1.01 Definitions.

          (a) As used in this Agreement, the terms defined above shall have the meanings respectively
assigned to them.

          (b) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein
have the meanings given to them in the Credit Agreement, and all terms which are defined in the UCC
are used herein as so defined.

 

 

          (c) As used in this Agreement, the following terms shall have the following meanings, unless
the context otherwise requires:

     “Agreement” means this US Guaranty Agreement, as the same may be amended, supplemented
or otherwise modified from time to time.

     “Bankruptcy Code” means Title 11, United States Code, as amended from time to time.

     “Borrower Obligations” means the collective reference to the payment and performance
when due of all indebtedness, liabilities, obligations and undertakings of the Borrowers and all
Restricted Subsidiaries (including, without limitation, all Indebtedness) of every kind or
description arising out of or outstanding under, advanced or issued pursuant, or evidenced by, the
Guaranteed Documents, including, without limitation, the unpaid principal of and interest on the
Loans and the LC Exposure and all other obligations and liabilities of the Borrowers and all
Restricted Subsidiaries (including, without limitation, interest accruing at the then applicable
rate provided in the Credit Agreement after the maturity of the Aggregate Credit Exposure and
interest accruing after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Borrowers, whether or not a claim
for post-filing or post-petition interest is allowed in such proceeding) to the Guaranteed
Creditors, whether direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, arising out of or outstanding under, advanced or issued pursuant,
or evidenced by, the Guaranteed Documents, whether on account of principal, interest, premium,
reimbursement obligations, payments in respect of an early termination date, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all reasonable costs, fees and
disbursements that are required to be paid by the Borrowers pursuant to the terms of any Guaranteed
Documents).

     “Collateral Agreement” means that certain US Collateral Agreement, dated August 20,
2007 by EI, EI Leasing, MLP LP, EES and the US Borrower, collectively, as Grantors in favor of the
US Administrative Agent for the Lenders.

     “Guaranteed Creditors” means the collective reference to the Administrative Agents,
the Lenders and the Lenders and Affiliates of Lenders that are parties to Guaranteed Hedging
Agreements and Guaranteed Treasury Management Agreements.

     “Guaranteed Documents” means the collective reference to the Credit Agreement, the
other Loan Documents, each Guaranteed Hedging Agreement, each Guaranteed Treasury Management
Agreement and any other document made, delivered or given in connection with any of the foregoing.

     “Guaranteed Hedging Agreement” means any Hedging Agreement between any Borrower or its
Restricted Subsidiary and any Lender or any Affiliate of any Lender while such Person (or, in the
case of an Affiliate of a Lender, the Person affiliated therewith) is a Lender, including any
Hedging Agreement between such Persons in existence prior to the date hereof,
but excluding any Hedging Agreement now existing or hereafter arising in connection with the
ABS Facility. For the avoidance of doubt, a Hedging Agreement ceases to be a Guaranteed Hedging
Agreement if the Person that is the counterparty to such Borrower or its Restricted

 - 2 - 

 

Subsidiary
under a Hedging Agreement ceases to be a Lender under the Credit Agreement (or, in the case of an
Affiliate of a Lender, the Person affiliated therewith ceases to be a Lender under the Credit
Agreement).

     “Guaranteed Treasury Management Agreement” means any Treasury Management Agreement
between any Borrower or its Restricted Subsidiary and any Lender or any Affiliate of any Lender
while such Person (or, in the case of an Affiliate of a Lender, the Person affiliated therewith) is
a Lender, including any Treasury Management Agreement between such Persons in existence prior to
the date hereof, but excluding any Treasury Management Agreement now existing or hereafter arising
in connection with the ABS Facility. For the avoidance of doubt, a Treasury Management Agreement
ceases to be a Guaranteed Treasury Management Agreement if the Person that is the counterparty to
such Borrower or its Restricted Subsidiary under a Treasury Management Agreement ceases to be a
Lender under the Credit Agreement (or, in the case of an Affiliate of a Lender, the Person
affiliated therewith ceases to be a Lender under the Credit Agreement).

     “Guarantor Obligations” means with respect to any Guarantor, the collective reference
to (a) the Borrower Obligations and (b) the payment and performance when due of all indebtedness,
liabilities, obligations and undertakings of such Guarantor of every kind or description, whether
direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter
incurred, arising out of or outstanding under, advanced or issued pursuant, or evidenced by, any
Guaranteed Document to which such Guarantor is a party, in each case, whether on account of
principal, interest, guarantee obligations, reimbursement obligations, payments in respect of an
early termination date, fees, indemnities, costs, expenses or otherwise (including, without
limitation, all reasonable fees and disbursements that are required to be paid pursuant to the
terms of any Guaranteed Document).

     “Guarantors” means the collective reference to each Guarantor.

     “Guarantor Claims” has the meaning assigned to such term in Section 6.01.

     Section 1.02 Rules of Interpretation. Section 1.04 of the Credit Agreement is hereby
incorporated herein by reference and shall apply to this Agreement, mutatis mutandis.

ARTICLE II

Guarantee

     Section 2.01 Guarantee.

          (a) Each of the Guarantors hereby jointly and severally, unconditionally and irrevocably,
guarantees to the US Administrative Agent, for the ratable benefit of the Guaranteed
Creditors and each of their respective permitted successors, indorsees, transferees and
assigns, the prompt and complete payment in cash by the Borrowers when due (whether at the stated
maturity, by acceleration or otherwise) of the Guarantor Obligations. This is a guarantee of
payment and not collection and the liability of each Guarantor is primary and not secondary.

 - 3 - 

 

          (b) Anything herein or in any other Guaranteed Document to the contrary notwithstanding, the
maximum liability of each Guarantor hereunder and under the other Guaranteed Documents shall in no
event exceed the amount which can be guaranteed by such Guarantor under applicable federal and
state laws relating to the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.02).

          (c) Each Guarantor agrees that the Guarantor Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee
contained in this ARTICLE II or affecting the rights and remedies of any Guaranteed
Creditor hereunder.

          (d) Each Guarantor agrees that if the maturity of the Guarantor Obligations is accelerated by
bankruptcy or otherwise, such maturity shall also be deemed accelerated for the purpose of this
guarantee without demand or notice to such Guarantor. The guarantee contained in this ARTICLE
II shall remain in full force and effect until all the Guarantor Obligations shall have been
satisfied by payment in full in cash, no Letter of Credit shall be outstanding (except for Letters
of Credit secured by cash collateral or one or more Support Letters of Credit as permitted in
Section 2.01(b)(iii) of the Credit Agreement) and all of the Aggregate Commitments are terminated,
notwithstanding that from time to time during the term of the Credit Agreement, no Guarantor
Obligations may be outstanding.

          (e) No payment made by any Guarantor, any other guarantor or any other Person or received or
collected by any Guaranteed Creditor from any Guarantor, any other guarantor or any other Person by
virtue of any action or proceeding or any set-off or appropriation or application at any time or
from time to time in reduction of or in payment of the Guarantor Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall,
notwithstanding any such payment (other than any payment made by such Guarantor in respect of the
Guarantor Obligations or any payment received or collected from such Guarantor in respect of the
Guarantor Obligations), remain liable for the Guarantor Obligations up to the maximum liability of
such Guarantor hereunder until the Guarantor Obligations are paid in full in cash, no Letter of
Credit is outstanding (except for Letters of Credit secured by cash collateral or one or more
Support Letters of Credit as permitted in Section 2.01(b)(iii) of the Credit Agreement) and all of
the Aggregate Commitments are terminated.

     Section 2.02 Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid its proportionate share of such payment. Each Guarantor’s right of
contribution shall be subject to the terms and conditions of Section 2.03. The provisions
of this Section 2.02 shall in no respect
limit the obligations and liabilities of any Guarantor to the Guaranteed Creditors, and each
Guarantor shall remain liable to the Guaranteed Creditors for the full amount guaranteed by such
Guarantor hereunder.

     Section 2.03 No Subrogation. Notwithstanding any payment made by any Guarantor hereunder
or any set-off or application of funds of any Guarantor by any Guaranteed Creditor, no Guarantor
shall be entitled to exercise any right of subrogation to any Guaranteed Creditor

 - 4 - 

 

against any
Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by
any Guaranteed Creditor for the payment of the Guarantor Obligations, nor shall any Guarantor seek
or be entitled to exercise any right to seek any indemnity, exoneration, participation,
contribution or reimbursement from any Borrower or any other Guarantor in respect of payments made
by such Guarantor hereunder, until all amounts owing to the Guaranteed Creditors on account of the
Guarantor Obligations are irrevocably and indefeasibly paid in full in cash, no Letter of Credit is
outstanding (except for Letters of Credit secured by cash collateral or one or more Support Letters
of Credit as permitted in Section 2.01(b)(iii) of the Credit Agreement) and all of the Aggregate
Commitments are terminated. If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all of the Guarantor Obligations shall not have been
irrevocably and indefeasibly paid in full in cash, any Letter of Credit is outstanding (except for
Letters of Credit secured by cash collateral or one or more Support Letters of Credit as permitted
in Section 2.01(b)(iii) of the Credit Agreement) or any of the Aggregate Commitments are in effect,
such amount shall be held by such Guarantor in trust for the Guaranteed Creditors, and shall,
forthwith upon receipt by such Guarantor, be turned over to the US Administrative Agent in the
exact form received by such Guarantor (duly indorsed by such Guarantor to the US Administrative
Agent, if required), to be applied against the Guarantor Obligations, whether matured or unmatured,
in accordance with Section 11.02(c) of the Credit Agreement.

     Section 2.04 Amendments, Etc. with respect to the Guarantor Obligations. Each Guarantor
shall remain obligated hereunder, and its Guarantor Obligations hereunder shall not be released,
discharged or otherwise affected, notwithstanding that, without any reservation of rights against
any Guarantor and without notice to, demand upon or further assent by any Guarantor (which notice,
demand and assent requirements are hereby expressly waived by such Guarantor), (a) any demand for
payment of any of the Guarantor Obligations made by any Guaranteed Creditor may be rescinded by
such Guaranteed Creditor or otherwise and any of the Guarantor Obligations continued; (b) the
Guarantor Obligations, the liability of any other Person upon or for any part thereof or any
collateral security or guarantee therefor or right of offset with respect thereto, may, from time
to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by, or any indulgence or forbearance in respect thereof granted by,
any Guaranteed Creditor; (c) any Guaranteed Document may be amended, modified, supplemented or
terminated, in whole or in part, as the Guaranteed Creditors may deem advisable from time to time;
(d) any collateral security, guarantee or right of offset at any time held by any Guaranteed
Creditor for the payment of the Guarantor Obligations may be sold, exchanged, waived, surrendered
or released; (e) any additional guarantors, makers or endorsers of the Guarantor Obligations may
from time
to time be obligated on the Guarantor Obligations or any additional security or collateral for the
payment and performance of the Guarantor Obligations may from time to time secure the Guarantor
Obligations; and (f) any other event shall occur which constitutes a defense or release of sureties
generally. No Guaranteed Creditor shall have any obligation to protect, secure, perfect or insure
any Lien at any time held by it as security for the Guarantor Obligations or for the guarantee
contained in this ARTICLE II or any Property subject thereto.

     Section 2.05 Waivers. Each Guarantor hereby waives any and all notice of the creation,
renewal, extension or accrual of any of the Guarantor Obligations and notice of or proof of

 - 5 - 

 

reliance by any Guaranteed Creditor upon the guarantee contained in this ARTICLE II or
acceptance of the guarantee contained in this ARTICLE II; the Guarantor Obligations, and
any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained in this ARTICLE II
and no notice of creation of the Guarantor Obligations or any extension of credit already or
hereafter contracted by or extended to the Borrowers need be given to any Guarantor; and all
dealings between any Borrower and any of the Guarantors, on the one hand, and the Guaranteed
Creditors, on the other hand, likewise shall be conclusively presumed to have been had or
consummated in reliance upon the guarantee contained in this ARTICLE II. To the extent
permitted by applicable law, each Guarantor waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon any Borrower or any of the Guarantors with
respect to the Guarantor Obligations.

     Section 2.06 Guaranty Absolute and Unconditional.

          (a) Each Guarantor understands and agrees that the guarantee contained in this ARTICLE
II is, and shall be construed as, a continuing, completed, absolute and unconditional guarantee
of payment, and each Guarantor hereby waives any defense of a surety or guarantor or any other
obligor on any obligations arising in connection with or in respect of any of the following and
hereby agrees that its obligations hereunder shall not be discharged or otherwise affected as a
result of, any of the following to the extent permitted by applicable law:

               (i) the invalidity or unenforceability of any Guaranteed Document, any of the Guarantor
Obligations or any other collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by any Guaranteed Creditor;

               (ii) any defense, set-off or counterclaim (other than a defense of payment or performance)
which may at any time be available to or be asserted by any Borrower or any other Person against
any Guaranteed Creditor;

               (iii) the insolvency, bankruptcy arrangement, reorganization, adjustment, composition,
liquidation, disability, dissolution or lack of power of any Borrower or any other Guarantor or any
other Person at any time liable for the payment of all or part of the Guarantor Obligations,
including any discharge of, or bar or stay against collecting, any Obligation (or any part of them
or interest therein) in or as a result of such proceeding;

               (iv) any sale, lease or transfer of any or all of the assets of any Borrower or any other
Guarantor, or any changes in the shareholders of any Borrower or the Guarantor; provided
that upon any such sale, lease or transfer, such assets shall be released in accordance with
Section 8.12 of the Collateral Agreement.

               (v) any change in the corporate existence (including its constitution, laws, rules,
regulations or power), structure or ownership of any Guarantor;

               (vi) the fact that any Collateral or Lien contemplated or intended to be given, created or
granted as security for the repayment of the Guarantor Obligations shall not be properly perfected
or created, or shall prove to be unenforceable or subordinate to any other

 - 6 - 

 

Lien, it being
recognized and agreed by each of the Guarantors that it is not entering into this Agreement in
reliance on, or in contemplation of the benefits of, the validity, enforceability, collectibility
or value of any of the Collateral for the Guarantor Obligations;

               (vii) the absence of any attempt to collect the Guarantor Obligations or any part of them from
any Guarantor;

               (viii) (A) any Guaranteed Creditor’s election, in any proceeding instituted under chapter 11
of the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code; (B) any
borrowing or grant of a Lien by the Borrowers as debtor-in-possession, or extension of credit,
under Section 364 of the Bankruptcy Code; (C) the disallowance, under Section 502 of the Bankruptcy
Code, of all or any portion of any Guaranteed Creditor’s claim (or claims) for repayment of the
Guarantor Obligations; (D) any use of cash collateral under Section 363 of the Bankruptcy Code; (E)
any agreement or stipulation as to the provision of adequate protection in any bankruptcy
proceeding; (F) the avoidance of any Lien in favor of the Guaranteed Creditors or any of them for
any reason; or (G) failure by any Guaranteed Creditor to file or enforce a claim against any
Borrower or any Borrower’s estate in any bankruptcy or insolvency case or proceeding; or

               (ix) any other circumstance or act whatsoever, including any action or omission of the type
described in Section 2.04 (with or without notice to or knowledge of the Borrowers or such
Guarantor), which constitutes, or might be construed to constitute, an equitable or legal discharge
of the Borrowers for the Borrower Obligations, or of such Guarantor under the guarantee contained
in this ARTICLE II, in bankruptcy or in any other instance.

          (b) When making any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, any Guaranteed Creditor may, but shall be under no obligation to, join or
make a similar demand on or otherwise pursue or exhaust such rights and remedies as it may have
against any Borrower, any other Guarantor or any other Person or against any collateral security or
guarantee for the Guarantor Obligations or any right of offset with respect thereto, and any
failure by any Guaranteed Creditor to make any such demand, to pursue such other rights or remedies
or to collect any payments from any Borrower, any other Guarantor or any other Person or to realize
upon any such collateral security or guarantee or to exercise any such right of offset, or any
release of any Borrower, any other Guarantor or any other Person or any such collateral security,
guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability
hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of any Guaranteed Creditor
against any Guarantor. For the purposes hereof “demand” shall include the commencement and
continuance of any legal proceedings.

     Section 2.07 Reinstatement. The guarantee contained in this ARTICLE II shall
continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any of the Guarantor Obligations is rescinded or must otherwise be restored or returned
by any Guaranteed Creditor upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of any Borrower or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, any Borrower or any

 - 7 - 

 

Guarantor or any substantial part of its Property, or otherwise, all as though such payments had
not been made.

     Section 2.08 Payments. Each Guarantor hereby guarantees that payments hereunder will be
paid to the US Administrative Agent, for the ratable benefit of the Guaranteed Creditors, without
set-off, deduction or counterclaim in dollars, in immediately available funds, at its US Principal
Office.

ARTICLE III

Representations and Warranties

     To induce the US Administrative Agent and the Lenders to enter into the Credit Agreement and
to induce the Lenders to make their respective extensions of credit to the Borrowers thereunder and
to induce the Guaranteed Creditors to enter into Hedging Agreements and Treasury Management
Agreements with the Borrowers and their Restricted Subsidiaries (other than any ABS Subsidiary),
each Guarantor hereby represents and warrants to the US Administrative Agent and each Lender for
itself only that:

     Section 3.01 Representations in Credit Agreement. In the case of such Guarantor, the
representations and warranties set forth in Article VII of the Credit Agreement as they relate to
such Guarantor or to the Loan Documents to which such Guarantor is a party are true and correct in
all material respects, provided that each reference in each such representation and
warranty to each Borrower’s knowledge, as applicable, shall, for the purposes of this Section
3.01, be deemed to be a reference to such Guarantor’s knowledge.

     Section 3.02 Benefit to the Guarantor. The Borrowers are members of an affiliated group of
companies that includes each Guarantor. Each Guarantor is a Subsidiary of the US Borrower, and its
guaranty and surety obligations pursuant to this Agreement reasonably may be expected to benefit,
directly or indirectly, the Borrowers, and it has determined that this Agreement is necessary and
convenient to the conduct, promotion and attainment of the business of such Guarantor and the
Borrowers.

     Section 3.03 Solvency. Such Guarantor (a) is not insolvent as of the date hereof and will not be rendered insolvent as
a result of this Agreement (after giving effect to Section 2.02), (b) is not engaged in
business or a transaction, or about to engage in a business or a transaction, for which any
Property remaining with it constitute unreasonably small capital and (c) does not intend to incur,
or believe it will incur, Debt that will be beyond its ability to pay as such Debt matures.

ARTICLE IV

Covenants

     Each Guarantor covenants and agrees with the US Administrative Agent and the Lenders for
itself only that, from and after the date of this Agreement until the Guarantor Obligations shall
have been paid in full in cash, no Letter of Credit shall be outstanding (except for Letters of
Credit secured by cash collateral or one or more Support Letters of Credit as permitted in Section

 - 8 - 

 

2.01(b)(iii) of the Credit Agreement) and all of the Aggregate Commitments shall have terminated:

     Section 4.01 Covenants in Credit Agreement. In the case of each Guarantor, such Guarantor
shall take, or shall refrain from taking, as the case may be, each action that is necessary to be
taken or not taken, as the case may be, so that no Default or Event of Default is caused by the
failure to take such action or to refrain from taking such action by such Guarantor or any of its
Restricted Subsidiaries.

ARTICLE V

The US Administrative Agent

     Section 5.01 Authority of US Administrative Agent. Each Guarantor acknowledges that the
rights and responsibilities of the US Administrative Agent under this Agreement with respect to any
action taken by the US Administrative Agent or the exercise or non-exercise by the US
Administrative Agent of any option, voting right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this Agreement shall, as between the US
Administrative Agent and the Guaranteed Creditors, be governed by the Credit Agreement and by such
other agreements with respect thereto as may exist from time to time among them, but, as between
the US Administrative Agent and the Guarantors, the US Administrative Agent shall be conclusively
presumed to be acting as agent for the Guaranteed Creditors with full and valid authority so to act
or refrain from acting, and no Guarantor shall be under any obligation, or entitlement, to make any
inquiry respecting such authority.

ARTICLE VI

Subordination of Indebtedness

     Section 6.01 Subordination of All Guarantor Claims. As used herein, the term
“Guarantor Claims” shall mean all debts and obligations of the Borrowers or any other
Guarantor to any other Guarantor, whether such debts and obligations now exist or are hereafter
incurred or arise, or whether the obligation of the debtor thereon be
direct, contingent, primary, secondary, several, joint and several, or otherwise, and irrespective
of whether such debts or obligations be evidenced by note, contract, open account, or otherwise,
and irrespective of the Person or Persons in whose favor such debts or obligations may, at their
inception, have been, or may hereafter be created, or the manner in which they have been or may
hereafter be acquired by. After and during the continuation of an Event of Default, no Guarantor
shall receive or collect, directly or indirectly, from any obligor in respect thereof any amount
upon the Guarantor Claims.

     Section 6.02 Claims in Bankruptcy. In the event of receivership, bankruptcy,
reorganization, arrangement, debtor’s relief or other insolvency proceedings involving any
Guarantor, the US Administrative Agent on behalf of the US Administrative Agent and the Guaranteed
Creditors shall have the right to prove their claim in any proceeding, so as to establish their
rights hereunder and receive directly from the receiver, trustee or other court custodian,
dividends and payments which would otherwise be payable upon Guarantor Claims. Each Guarantor
hereby assigns such dividends and payments to the US Administrative Agent for the benefit of the US
Administrative Agent and the Guaranteed Creditors for application against the Guarantor Obligations
as provided under Section 11.02(b) of the Credit Agreement. Should

 - 9 - 

 

any Agent or Guaranteed
Creditor receive, for application upon the Guarantor Obligations, any such dividend or payment
which is otherwise payable to any Guarantor, and which, as between such Guarantors, shall
constitute a credit upon the Guarantor Claims, then upon payment in full in cash of the Guarantor
Obligations, the expiration of all Letters of Credit (except for Letters of Credit secured by cash
collateral or one or more Support Letters of Credit as permitted in Section 2.01(b)(iii) of the
Credit Agreement) and the termination of all of the Aggregate Commitments, the intended recipient
shall become subrogated to the rights of the US Administrative Agent and the Guaranteed Creditors
to the extent that such payments to the US Administrative Agent and the Lenders on the Guarantor
Claims have contributed toward the liquidation of the Guarantor Obligations, and such subrogation
shall be with respect to that proportion of the Guarantor Obligations which would have been unpaid
if the US Administrative Agent and the Guaranteed Creditors had not received dividends or payments
upon the Guarantor Claims.

     Section 6.03 Payments Held in Trust. In the event that notwithstanding Section
6.01 and Section 6.02, any Guarantor should receive any funds, payments, claims or
distributions which is prohibited by such Sections, then it agrees: (a) to hold in trust for the US
Administrative Agent and the Guaranteed Creditors an amount equal to the amount of all funds,
payments, claims or distributions so received, and (b) that it shall have absolutely no dominion
over the amount of such funds, payments, claims or distributions except to pay them promptly to the
US Administrative Agent, for the benefit of the Guaranteed Creditors; and each Guarantor covenants
promptly to pay the same to the US Administrative Agent.

     Section 6.04 Liens Subordinate. Each Guarantor agrees that, until the Guarantor
Obligations are paid in full in cash, the expiration of all Letters of Credit (except for Letters
of Credit secured by cash collateral or one
or more Support Letters of Credit as permitted in Section 2.01(b)(iii) of the Credit Agreement) and
the termination of all of the Aggregate Commitments, any Liens securing payment of the Guarantor
Claims shall be and remain inferior and subordinate to any Liens securing payment of the Guarantor
Obligations, regardless of whether such encumbrances in favor of such Guarantor, the US
Administrative Agent or any Guaranteed Creditor presently exist or are hereafter created or attach.
Without the prior written consent of the US Administrative Agent, no Guarantor, during the period
in which any of the Guarantor Obligations are outstanding, any Letters of Credit are outstanding
(except for Letters of Credit secured by cash collateral or one or more Support Letters of Credit
as permitted in Section 2.01(b)(iii) of the Credit Agreement) or the Aggregate Commitments are in
effect, shall (a) exercise or enforce any creditor’s right it may have against any debtor in
respect of the Guarantor Claims, or (b) foreclose, repossess, sequester or otherwise take steps or
institute any action or proceeding (judicial or otherwise, including without limitation the
commencement of or joinder in any liquidation, bankruptcy, rearrangement, debtor’s relief or
insolvency proceeding) to enforce any Lien held by it that secures Guarantors Claims.

     Section 6.05 Notation of Records. Upon the request of the US Administrative Agent, all
promissory notes and all accounts receivable ledgers or other evidence of the Guarantor Claims
accepted by or held by any Guarantor shall contain a specific written notice thereon that the
indebtedness evidenced thereby is subordinated under the terms of this Agreement.

 - 10 - 

 

ARTICLE VII

Miscellaneous

     Section 7.01 Waiver. No failure on the part of the US Administrative Agent or any
Guaranteed Creditor to exercise and no delay in exercising, and no course of dealing with respect
to, any right, power, privilege or remedy or any abandonment or discontinuance of steps to enforce
such right, power, privilege or remedy under this Agreement or any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, power,
privilege or remedy under this Agreement or any other Loan Document preclude or be construed as a
waiver of any other or further exercise thereof or the exercise of any other right, power,
privilege or remedy. The remedies provided herein are cumulative and not exclusive of any remedies
provided by law or equity.

     Section 7.02 Notices. All notices and other communications provided for herein shall be
given in the manner and subject to the terms of Section 13.02 of the Credit Agreement;
provided that any such notice, request or demand to or upon any Guarantor shall be
addressed to such Guarantor at its notice address set forth on Schedule 1.

     Section 7.03 Amendments in Writing. None of the terms or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except in accordance with Section 13.04 of the Credit Agreement.

     Section 7.04 Successors and Assigns. Except as set forth in the immediately following
sentence, the provisions of this Agreement shall be binding upon the Guarantors and their
successors and assigns and shall inure to the benefit of the US Administrative Agent and the
Guaranteed Creditors and their respective successors and permitted assigns; provided that
no Guarantor may assign, transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of the US Administrative Agent and the Lenders unless otherwise
permitted by the terms of the Credit Agreement or this Agreement, and any such purported
assignment, transfer or delegation shall be null and void. A Guarantor shall automatically cease
to be a party hereto, and shall be released pursuant to Section 9.07(d) of the Credit Agreement
from its obligations hereunder, upon such Guarantor ceasing to be a Significant Domestic Subsidiary
wholly-owned by the US Borrower in accordance with the Credit Agreement.

     Section 7.05 Survival; Revival; Reinstatement.

          (a) All covenants, agreements, representations and warranties made by any Guarantor herein and
in the certificates or other instruments delivered in connection with or pursuant to this Agreement
or any other Loan Document to which it is a party shall be considered to have been relied upon by
the US Administrative Agent, the other Agents, the Issuing Bank and the Lenders and shall survive
the execution and delivery of this Agreement and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party or on its behalf
and notwithstanding that the US Administrative Agent, the other Agents, the Issuing Bank or any
Lender may have had notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended hereunder, and shall continue in full force and effect as long as
the principal of or any accrued interest on

 - 11 - 

 

any Loan or any fee or any other amount payable under
the Credit Agreement is outstanding and unpaid or any Letter of Credit is outstanding (except for
Letters of Credit secured by cash collateral or one or more Support Letters of Credit as permitted
in Section 2.01(b)(iii) of the Credit Agreement) and so long as the Aggregate Commitments have not
expired or terminated.

          (b) To the extent that any payments on the Guarantor Obligations are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor
in possession, receiver or other Person under any bankruptcy law, common law or equitable cause,
then to such extent, the Guarantor Obligations so satisfied shall be revived and continue as if
such payment or proceeds had not been received and the US Administrative Agent’s and the Guaranteed
Creditors’ Liens, security interests, rights, powers and remedies under this Agreement and each
other Loan Document shall continue in full force and effect. In such event, each Loan Document
shall be automatically reinstated and the Borrowers shall take such action as may be reasonably
requested by the US Administrative Agent and the Guaranteed Creditors to effect such reinstatement.

     Section 7.06 Counterparts; Integration; Effectiveness; Conflicts.

          (a) This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract.

          (b) This Agreement and the other Loan Documents embody the entire agreement and
understanding between the parties and supersede all other agreements and understandings between
such parties relating to the subject matter hereof and thereof. This Agreement and the Loan
Documents represent the final agreement between the parties and may not be contradicted by evidence
of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten
oral agreements between the parties.

          (c) This Agreement shall become effective when it shall have been executed by the US
Administrative Agent and when the US Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto, the Lenders and their
respective successors and assigns. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this
Agreement.

          (d) In the event of a conflict between the provisions hereof and the provisions of the Credit
Agreement, the provisions of the Credit Agreement shall control.

     Section 7.07 Severability. Any provision of this Agreement or any other Loan Document held
to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof or thereof; and the
invalidity of a particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction.

 - 12 - 

 

     Section 7.08 Set-Off. If an Event of Default shall have occurred and be continuing, each
Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations (of whatsoever kind,
including, without limitations obligations under Hedging Agreements and Treasury Management
Agreements) at any time owing by such Lender or Affiliate to or for the credit or the account of
any Guarantor against any of and all the obligations of the Guarantor owed to such Lender now or
hereafter existing under this Agreement or any other Loan Document, irrespective of whether or not
such Lender shall have made any demand under this Agreement or any other Loan Document and although
such obligations may be unmatured. The rights of each Lender under this Section 7.08 are
in addition to other rights and remedies (including other rights of setoff) which such Lender
or its Affiliates may have. Notwithstanding anything to the contrary contained in this Agreement,
the Lenders hereby agree that they shall not set off any funds in any lock boxes whatsoever in
connection with this Agreement, except for such lock boxes which may be established in connection
with this Agreement.

     Section 7.09 Governing Law; Submission to Jurisdiction.

          (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF TEXAS.

          (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS OR OF THE UNITED STATES OF AMERICA FOR THE
SOUTHERN DISTRICT OF TEXAS IN HOUSTON, TEXAS, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
EACH OF THE PARTIES HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF
ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING
OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO
JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER
ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION.

          (c) EACH GUARANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
MAIL, POSTAGE PREPAID, TO SUCH GUARANTOR AT ITS ADDRESS SET FORTH ON SCHEDULE 1 HERETO OR
AS UPDATED FROM TIME TO TIME, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING.

          (d) NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE US ADMINISTRATIVE AGENT OR ANY LENDER OR ANY
HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE

 - 13 - 

 

LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE GUARANTOR IN ANY OTHER JURISDICTION.

          (e) EACH PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY
SECURITY INSTRUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVES, TO THE MAXIMUM
EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER
THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY
REPRESENTATIVE OF THE US ADMINISTRATIVE AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVERS, AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT, THE SECURITY INSTRUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION 7.09.

     Section 7.10 Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

     Section 7.11 Acknowledgments. Each Guarantor hereby acknowledges that:

          (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

          (b) neither the US Administrative Agent nor any Guaranteed Creditor has any fiduciary
relationship with or duty to any Guarantor arising out of or in connection with this Agreement or
any of the other Loan Documents, and the relationship between the Guarantors, on the one hand, and
the US Administrative Agent and Guaranteed Creditors, on the other hand, in connection herewith or
therewith is solely that of guarantor and creditor;

          (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Guaranteed Creditors or among the
Guarantors and the Guaranteed Creditors; and

          (d) Each of the parties hereto specifically agrees that it has a duty to read this Agreement,
the Security Instruments and the other Loan Documents and agrees that it is charged with notice and
knowledge of the terms of this Agreement, the Security Instruments and the other Loan Documents;
that it has in fact read this Agreement, the Security Instruments and the other Loan Documents and
is fully informed and has full notice and knowledge of the terms, conditions and effects thereof;
that it has been represented by independent legal counsel of its choice throughout the negotiations
preceding its execution of this Agreement and the Security Instruments; and has received the advice
of its attorney in entering into this Agreement and the Security Instruments; and that it
recognizes that certain of the terms of this Agreement and the

 - 14 - 

 

Security Instruments result in one
party assuming the liability inherent in some aspects of the transaction and relieving the other
party of its responsibility for such liability. EACH PARTY HERETO AGREES AND COVENANTS THAT IT
WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND
THE SECURITY INSTRUMENTS ON THE BASIS THAT THE
PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

     Section 7.12 Additional Guarantors. Each Subsidiary that is required to become a party to
this Agreement pursuant to Section 9.07(a) of the Credit Agreement shall become a Guarantor for all
purposes of this Agreement upon execution and delivery by such Subsidiary of an Assumption
Agreement in the form of Annex I hereto and shall thereafter have the same rights, benefits
and obligations as a Guarantor party hereto on the date hereof.

     Section 7.13 Acceptance. Each Guarantor hereby expressly waives notice of acceptance of
this Agreement, acceptance on the part of the US Administrative Agent and the Guaranteed Creditors
being conclusively presumed by their request for this Agreement and delivery of the same to the US
Administrative Agent.

[Signatures Begin Next Page]

 

 

     IN WITNESS WHEREOF, each of the undersigned has caused this Guaranty Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	GUARANTORS:	 	EXTERRAN, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ J. Michael Anderson
	 	 	 	 	 
	 	 	Name:	 	J. Michael Anderson

	 	 	Title:	 	Senior Vice President
	 
	 	 	 	 	 	 
	 	 	EI LEASING LLC
	 
	 	 	 	 	 	 
	 	 	By: EXTERRAN, INC.,

       its sole member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ J. Michael Anderson
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	J. Michael Anderson
	 

	 	 	 	Title:
	 	Senior Vice President
	 
	 	 	 	 	 	 
	 	 	UCI MLP LP LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Pamela A. Jasinski
	 	 	 	 	 
	 	 	Name:	 	Pamela A. Jasinski

	 	 	Title:	 	Manager
	 
	 	 	 	 	 	 
	 	 	EXTERRAN ENERGY SOLUTIONS, L.P.,
	 
	 	 	 	 	 	 
	 	 	By:	 	HANOVER COMPRESSION 

GENERAL HOLDINGS LLC
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Brian A. Matusek
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Brian A. Matusek
	 

	 	 	 	Title:
	 	President and Manager

Signature Page — US Guaranty Agreement

 

 

Acknowledged and Agreed to as

of the date hereof by:

	 	 	 	 	 	 	 
	US ADMINISTRATIVE AGENT:	 	WACHOVIA BANK, NATIONAL

ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:

Title:
	 	By: /s/ Todd Schanzlin
 

Todd Schanzlin

Vice President
	 	 

Signature Page — US Guaranty Agreement

 

 

Annex I

ASSUMPTION AGREEMENT

          This
ASSUMPTION AGREEMENT, dated as of [     ], 200[  ], made by [     ], a [     ] (the “Additional Guarantor”), in favor of Wachovia Bank, National
Association, as administrative agent (in such capacity, the “US Administrative Agent”) for
the banks and other financial institutions (the “Lenders”) from time to time parties to the
Credit Agreement (defined below) and, in the case of any Guaranteed Hedging Agreement or any
Guaranteed Treasury Management Agreement referred to in the Guaranty Agreement (defined below), any
Lender Affiliate (as defined in the Credit Agreement). All capitalized terms not defined herein
shall have the meaning ascribed to them in such Credit Agreement.

W I T N E S S E T H:

          WHEREAS, Exterran Holdings, Inc., a Delaware corporation (the “US Borrower”) and
Exterran Canada, Limited Partnership, a Nova Scotia limited partnership (the “Canadian
Borrower” and together with the US Borrower, the “Borrowers”), the Administrative
Agents, the Lenders and the other Agents party thereto have entered into a Senior Secured Credit
Agreement dated August 20, 2007 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”);

          WHEREAS, in connection with the Credit Agreement, certain Affiliates (other than the
Additional Guarantor) of the Borrowers (each a “Guarantor”) have entered into the US
Guaranty Agreement, dated as of August 20, 2007 (as amended, supplemented or otherwise modified
from time to time, the “US Guaranty Agreement”) in favor of the US Administrative Agent for
the ratable benefit of the Guaranteed Creditors;

          WHEREAS, the Credit Agreement requires the Additional Guarantor to become a party to the
Guaranty Agreement; and

          WHEREAS, the Additional Guarantor has agreed to execute and deliver this Assumption Agreement
in order to become a party to the Guaranty Agreement;

          NOW, THEREFORE, IT IS AGREED:

          1. Guaranty Agreement. By executing and delivering this Assumption Agreement, the
Additional Guarantor, as provided in Section 7.12 of the Guaranty Agreement, hereby becomes a party
to the Guaranty Agreement as a Guarantor thereunder with the same force and effect as if originally
named therein as a Guarantor and, without limiting the generality of the foregoing, hereby
expressly assumes all obligations and liabilities of a Guarantor thereunder. The information set
forth in Annex 1-A hereto is hereby added to the information set forth in Schedule
1 to the Guaranty Agreement. The Additional Guarantor hereby represents and warrants that each
of the representations and warranties as they relate to such Guarantor or to the Loan Documents to
which such Guarantor is a party contained in Article III of the Guaranty

Annex 1-1

 

Agreement is true and
correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date, except to the extent any such representations and
warranties are expressly limited to an earlier date, in which case, on and as of such date, such
representations and warranties shall continue to be true and correct as of such specified earlier
date.

          2. Governing Law. This Assumption Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas.

          IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	[ADDITIONAL GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Annex 1-2

 

Annex 1-A

NOTICE ADDRESS OF ADDITIONAL GUARANTOR

Annex 1-3

 

Schedule 1

NOTICE ADDRESSES OF GUARANTORS

If to Exterran, Inc., EI Leasing LLC, UCI MLP LP LLC or Exterran Energy Solutions, L.P.:

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

With a copy to:

4444 Brittmoore Road

Houston, Texas 77041

Attention: General Counsel

Telecopier No.: 713-335-7867

and

Baker Botts L.L.P.

One Shell Plaza

910 Louisiana

Houston, Texas 77002

Attention: Steve Krebs

Telecopier No.: 713-229-7767

Schedule 1 - 1exv10w5

 

EXHIBIT
10.5

US PLEDGE AGREEMENT

(Assignment of Pledged Securities)

made by

EXTERRAN HOLDINGS, INC.,

EXTERRAN, INC.

EXTERRAN ENERGY SOLUTIONS, L.P.

HANOVER COMPRESSION GENERAL HOLDINGS LLC,

HANOVER HL, LLC,

ENTERRA COMPRESSION INVESTMENT COMPANY,

UCI MLP LP LLC,

UCO GENERAL PARTNER, LP,

UCI GP LP LLC

and

UCO GP, LLC,

as Pledgors

to

WACHOVIA BANK, NATIONAL ASSOCIATION,

as US Administrative Agent

Effective as of August 20, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 Terms Defined Above
	 	 	2	 
	Section 1.02 Certain Definitions
	 	 	2	 
	Section 1.03 Rules of Interpretation
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	Security Interest
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 Pledge
	 	 	4	 
	Section 2.02 Collateral
	 	 	4	 
	Section 2.03 No Subrogation
	 	 	5	 
	Section 2.04 Amendments, Etc. with respect to the Obligations
	 	 	5	 
	Section 2.05 Waivers
	 	 	6	 
	Section 2.06 Pledge Absolute and Unconditional
	 	 	6	 
	Section 2.07 Reinstatement
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	Section 3.01 Ownership of Collateral; Encumbrances
	 	 	9	 
	Section 3.02 No Required Consent
	 	 	9	 
	Section 3.03 Pledged Securities
	 	 	9	 
	Section 3.04 First Priority Security Interest
	 	 	9	 
	Section 3.05 Collateral
	 	 	9	 
	Section 3.06 Pledgor’s Location
	 	 	9	 
	Section 3.07 Benefit to the Pledgor
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	Covenants and Agreements
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 Covenants in Credit Agreement
	 	 	10	 
	Section 4.02 Maintenance of Perfected Security Interest; Further Documentation
	 	 	10	 
	Section 4.03 Changes in Locations, Name, Etc
	 	 	11	 
	Section 4.04 Pledged Securities
	 	 	11	 
	Section 4.05 Article 8 of the UCC
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Remedial Provisions
	 	 	 	 
	 
	 	 	 	 
	Section 5.01 UCC and Other Remedies
	 	 	12	 
	Section 5.02 Pledged Securities
	 	 	14	 
	Section 5.03 Private Sales of Pledged Securities
	 	 	15	 
	Section 5.04 Non-Judicial Enforcement
	 	 	16	 

i 

 

	 	 	 	 	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	The US Administrative Agent
	 	 	 	 
	 
	 	 	 	 
	Section 6.01 US Administrative Agent’s Appointment as Attorney-in-Fact, Etc
	 	 	16	 
	Section 6.02 Duty of US Administrative Agent
	 	 	18	 
	Section 6.03 Filing of Financing Statements
	 	 	18	 
	Section 6.04 Authority of US Administrative Agent
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	Section 7.01 Waiver
	 	 	19	 
	Section 7.02 Notices
	 	 	19	 
	Section 7.03 Amendments in Writing
	 	 	19	 
	Section 7.04 Successors and Assigns
	 	 	19	 
	Section 7.05 Survival; Revival; Reinstatement
	 	 	19	 
	Section 7.06 Counterparts; Integration; Effectiveness; Conflicts
	 	 	20	 
	Section 7.07 Severability
	 	 	21	 
	Section 7.08 Governing Law; Submission to Jurisdiction
	 	 	21	 
	Section 7.09 Headings
	 	 	22	 
	Section 7.10 Acknowledgments
	 	 	22	 
	Section 7.11 Additional Pledgors and Pledgors
	 	 	23	 
	Section 7.12 Releases
	 	 	23	 
	Section 7.13 Acceptance
	 	 	24	 

ANNEXES:

	I 	 	 Form of Assumption Agreement
	 
	II  	 	Form of Supplement

SCHEDULES:

	1	 	Notice Addresses of Pledgors
	 
	2	 	Description of Pledged Securities
	 
	3	 	Filings and Other Actions Required to Perfect Security Interests
	 
	4	 	Location of Jurisdiction of Organization and Chief Executive Office

ii 

 

US PLEDGE AGREEMENT

(Assignment of Pledged Securities)

     This US PLEDGE AGREEMENT, dated as of August 20, 2007, is made by EXTERRAN HOLDINGS, INC., a
Delaware corporation (the “US Borrower”), EXTERRAN, INC., a Texas corporation, EXTERRAN
ENERGY SOLUTIONS, L.P., a Delaware limited partnership, HANOVER COMPRESSION GENERAL HOLDINGS LLC, a
Delaware limited liability company, HANOVER HL, LLC, a Delaware limited liability company, ENTERRA
COMPRESSION INVESTMENT COMPANY, a Delaware corporation, UCI MLP LP LLC, a Delaware limited
liability company, UCO GENERAL PARTNER, LP, a Delaware limited partnership, UCI GP LP LLC, a
Delaware limited liability company, UCO GP, LLC, a Delaware limited liability company and each of
the Subsidiaries that become a party hereto from time to time after the date hereof (collectively,
the “Pledgors”), in favor of WACHOVIA BANK, NATIONAL ASSOCIATION, with offices at 301 South
College Street, Charlotte, North Carolina 28288, as administrative agent (in such capacity,
together with its successors in such capacity, the “US Administrative Agent”), for the
banks and other financial institutions (the “Lenders”) from time to time parties to the
Senior Secured Credit Agreement dated August 20, 2007 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the US Borrower, Exterran
Canada, Limited Partnership, a Nova Scotia limited partnership (the “Canadian Borrower” and
together with the US Borrower, the “Borrowers”), the Lenders, the Administrative Agents and
the other Agents party thereto.

R E C I T A L S

     A. The Borrowers have requested that the Lenders provide certain loans to and extensions of
credit on behalf of the Borrowers.

     B. The Lenders have agreed to make such loans and extensions of credit subject to the terms
and conditions of the Credit Agreement.

     C. It is a condition precedent and a continuing covenant to the obligation of the Lenders to
make their loans and extensions of credit to the Borrowers under the Credit Agreement that the
Pledgors shall have executed and delivered this Agreement to the US Administrative Agent for the
ratable benefit of the Secured Creditors.

     D. NOW, THEREFORE, in consideration of the premises herein and to induce the US Administrative
Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders and Secured
Creditors to make their respective extensions of credit to the Borrowers thereunder and in
connection therewith, the parties hereto agree as follows:

1

 

ARTICLE 1

Definitions

     Section 1.01 Terms Defined Above. As used in this Agreement, the terms defined above shall
have the meanings respectively assigned to them.

     Section 1.02 Certain Definitions.

          (a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein
have the meanings given to them in the Credit Agreement, and all terms which are defined in the UCC
are used herein as so defined.

          (b) As used in this Agreement, the following terms shall have the following meanings, unless
the context otherwise requires:

     “Agreement” means this US Pledge Agreement, as the same may from time to time
be amended, supplemented or otherwise modified.

     “Borrower Obligations” means the collective reference to the payment and
performance when due of all indebtedness, liabilities, obligations and undertakings of the
Borrowers and all Restricted Subsidiaries (including, without limitation, all Indebtedness)
of every kind or description arising out of or outstanding under, advanced or issued
pursuant, or evidenced by, the Secured Documents, including, without limitation, the unpaid
principal of and interest on the Aggregate Credit Exposure and all other obligations and
liabilities of the Borrowers and all Restricted Subsidiaries (including, without limitation,
interest accruing at the then applicable rate provided in the Credit Agreement after the
maturity of the Loans and LC Exposure and interest accruing after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding,
relating to the Borrowers, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding) to the Secured Creditors, whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter incurred, arising
out of or outstanding under, advanced or issued pursuant, or evidenced by, the Secured
Documents, whether on account of principal, interest, premium, reimbursement obligations,
payments in respect of an early termination date, fees, indemnities, costs, expenses or
otherwise (including, without limitation, all reasonable costs, fees and disbursements that
are required to be paid by the Borrowers pursuant to the terms of any Secured Document).

     “Issuers” means the collective reference to each issuer of Pledged Securities.

     “Obligations” means with respect to any Pledgor, the collective reference to
(a) the Borrower Obligations and (b) the payment and performance when due of all
indebtedness, liabilities, obligations and undertakings of such Pledgor of every kind
or description, whether direct or indirect, absolute or contingent, due or to become due, or
now existing or hereafter incurred, arising out of or outstanding under, advanced or issued
pursuant, or evidenced by, any Secured Document to which such Pledgor is a

2

 

party, in each
case, whether on account of principal, interest, guarantee obligations, reimbursement
obligations, payments in respect of an early termination date, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all reasonable fees and disbursements
that are required to be paid pursuant to the terms of any Secured Document).

     “Pledged Securities” has the meaning assigned in Section 2.02(a).

     “Proceeds” means all “proceeds” as such term is defined in Section 9.102(65) of
the UCC and, in any event, shall include, without limitation, all dividends or other income
from the Pledged Securities, collections thereon or distributions or payments with respect
thereto.

     “Secured Creditors” means the collective reference to the Administrative
Agents, the Issuing Banks, the Lenders and the Lenders and Affiliates of Lenders that are
parties to Secured Hedging Agreements and Secured Treasury Management Agreements.

     “Secured Documents” means the collective reference to the Credit Agreement, the
other Loan Documents, each Secured Hedging Agreement, each Secured Treasury Management
Agreement and any other document made, delivered or given in connection with any of the
foregoing.

     “Secured Hedging Agreement” means any Hedging Agreement between any Borrower or
its Restricted Subsidiary and any Lender or any Affiliate of any Lender while such Person
(or, in the case of an Affiliate of a Lender, the Person affiliated therewith) is a Lender,
including any Hedging Agreement between such Persons in existence prior to the date hereof,
but excluding any Hedging Agreement now existing or hereafter arising in connection with the
ABS Facility. For the avoidance of doubt, a Hedging Agreement ceases to be a Secured
Hedging Agreement if the Person that is the counterparty to such Borrower or its Restricted
Subsidiary under a Hedging Agreement ceases to be a Lender under the Credit Agreement (or,
in the case of an Affiliate of a Lender, the Person affiliated therewith ceases to be a
Lender under the Credit Agreement).

     “Secured Treasury Management Agreement” means any Treasury Management Agreement
between any Borrower or its Restricted Subsidiary and any Lender or any Affiliate of any
Lender while such Person (or, in the case of an Affiliate of a Lender, the Person affiliated
therewith) is a Lender, including any Treasury Management Agreement between such Persons in
existence prior to the date hereof, but excluding any Treasury Management Agreement now
existing or hereafter arising in connection with the ABS Facility. For the avoidance of
doubt, a Treasury Management Agreement ceases to be a
Secured Treasury Management Agreement if the Person that is the counterparty to such
Borrower or its Restricted Subsidiary under a Treasury Management Agreement ceases to be a
Lender under the Credit Agreement (or, in the case of an Affiliate of a Lender, the Person
affiliated therewith ceases to be a Lender under the Credit Agreement).

3

 

     “Securities Act” means the Securities Act of 1933, as amended.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the
State of Texas; provided, however, that, in the event that, by reason of
mandatory provisions of law, any of the attachment, perfection or priority of the Secured
Creditors’ security interest in any Collateral is governed by the Uniform Commercial Code as
in effect in a jurisdiction other than the State of Texas, the term “UCC” shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such attachment, perfection, the effect thereof or priority
and for purposes of definitions related to such provisions.

     Section 1.03 Rules of Interpretation. Section 1.04 of the Credit Agreement is hereby
incorporated herein by reference and shall apply to this Agreement, mutatis mutandis.

ARTICLE 2

Security Interest

     Section 2.01 Pledge. Each Pledgor hereby pledges, assigns, transfers and grants to
the US Administrative Agent for the ratable benefit of the Secured Creditors a security interest in
and right of set-off against all of such Pledgor’s rights, whether now owned or hereafter acquired,
in and to the assets referred to in Section 2.02 (the “Collateral”) to secure the
prompt payment and performance of the “Obligations” (as defined in Section 1.02)
and the performance by such Pledgor of this Agreement.

     Section 2.02 Collateral.

     (a) The Collateral consists of the “Pledged Securities” which means: (i) the
Equity Interests described or referred to in Schedule 2 (as the same may be
supplemented from time to time pursuant to a Supplement in substantially the form of
Annex II); and (ii) (A) the certificates or instruments, if any, representing such
Equity Interests, (B) all dividends (cash, Equity Interests or otherwise), cash,
instruments, rights to subscribe, purchase or sell and all other rights and Property from
time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all of such securities and interests, (C) all replacements, additions to and
substitutions for any of the Property referred to in this definition, including, without
limitation, claims against third parties,
(D) the proceeds, interest, profits and other income of or on any of the Property
referred to in this definition, (E) all security entitlements in respect of any of the
foregoing, if any and (F) all books and records relating to any of the Property referred to
in this definition.

     (b) It is expressly contemplated that additional Property may from time to time be
pledged, assigned, transferred or granted to the US Administrative Agent as additional
security for the Obligations, and the term “Collateral” as used herein shall be
deemed for all purposes hereof to include all such additional Property, together with all
other Property of the types described in clause (a) above related thereto;
provided, however, that in no event shall the term “Collateral” or “Pledged
Securities” include

4

 

more than 65% of the issued and outstanding shares of Equity Interests
of any first tier Foreign Subsidiary nor any Equity Interests of any other Foreign
Subsidiary. All certificates or instruments representing or evidencing the Pledged
Securities shall be delivered to and held pursuant hereto by the US Administrative Agent or
a Person designated by the US Administrative Agent and shall be in suitable form for
transfer by delivery, or shall be accompanied by duly executed instruments of transfer or
assignment in blank, and accompanied by any required transfer tax stamps to effect the
pledge of the Pledged Securities to the US Administrative Agent. Notwithstanding the
preceding sentence, at the US Administrative Agent’s discretion, all Pledged Securities
must be delivered or transferred in such manner as to permit the US Administrative Agent to
be a “protected purchaser” to the extent of its security interest as provided in Section
8.303 of the UCC (if the US Administrative Agent otherwise qualifies as a protected
purchaser). During the continuance of an Event of Default, the US Administrative Agent
shall have the right, at any time in its discretion and without notice, to transfer to or
to register in the name of the US Administrative Agent or any of its nominees any or all of
the Pledged Securities, subject only to the revocable rights specified in Section
5.03. In addition, during the continuance of an Event of Default, the US
Administrative Agent shall have the right at any time to exchange certificates or
instruments representing or evidencing Pledged Securities for certificates or instruments
of smaller or larger denominations.

     Section 2.03 No Subrogation. Notwithstanding any payment made by any Pledgor hereunder or
any set-off or application of funds of any Pledgor by any Secured Creditor, no Pledgor shall be
entitled to exercise any right of subrogation to any Secured Creditor against any Borrower or any
other Pledgor or any collateral security or pledge or guarantee or right of offset held by any
Secured Creditor for the payment of the Obligations, nor shall any Pledgor seek or be entitled to
exercise any right to seek any indemnity, exoneration, participation, contribution or reimbursement
from any Borrower or any other Pledgor in respect of payments made by such Pledgor hereunder, until
all amounts owing to the Secured Creditors on account of the Obligations are irrevocably and
indefeasibly paid in full in cash, no Letter of Credit is outstanding (except for Letters of Credit
secured by cash collateral or one or more Support Letters of Credit as permitted in Section
2.01(b)(iii) of the Credit Agreement) and all of the Aggregate Commitments are terminated. If any
amount shall be paid to any Pledgor on account of such subrogation rights at any time when
all of the Obligations shall not have been irrevocably and indefeasibly paid in full in cash, any
Letter of Credit is outstanding (except for Letters of Credit secured by cash collateral or one or
more Support Letters of Credit as permitted in Section 2.01(b)(iii) of the Credit Agreement) or any
of the Aggregate Commitments are in effect, such amount shall be held by such Pledgor in trust for
the Secured Creditors, and shall, forthwith upon receipt by such Pledgor, be turned over to the US
Administrative Agent in the exact form received by such Pledgor (duly indorsed by such Pledgor to
the US Administrative Agent, if required), to be applied against the Obligations, whether matured
or unmatured, in accordance with Section 11.02(c) of the Credit Agreement.

     Section 2.04 Amendments, Etc. with respect to the Obligations. Each Pledgor shall remain
obligated hereunder, and such Pledgor’s obligations hereunder shall not be released,

5

 

discharged or
otherwise affected, notwithstanding that, without any reservation of rights against any Pledgor and
without notice to, demand upon or further assent by any Pledgor (which notice, demand and assent
requirements are hereby expressly waived by such Pledgor), (a) any demand for payment of any of the
Obligations made by any Secured Creditor may be rescinded by such Secured Creditor or otherwise and
any of the Obligations continued; (b) the Obligations, the liability of any other Person upon or
for any part thereof or any collateral security or pledge or guarantee therefor or right of offset
with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by, or any indulgence or
forbearance in respect thereof granted by, any Secured Creditor; (c) any Secured Document may be
amended, modified, supplemented or terminated, in whole or in part, as the Secured Creditors may
deem advisable from time to time; (d) any collateral security, pledge, guarantee or right of offset
at any time held by any Secured Creditor for the payment of the Obligations may be sold, exchanged,
waived, surrendered or released; (e) any additional guarantors, makers or endorsers of the
Obligations may from time to time be obligated on the Obligations or any additional security or
collateral for the payment and performance of the Obligations may from time to time secure the
Obligations; and (f) any other event shall occur which constitutes a defense or release of sureties
generally. No Secured Creditor shall have any obligation to protect, secure, perfect or insure any
Lien at any time held by it as security for the Obligations or for the pledge contained in this
ARTICLE II or any Property subject thereto.

     Section 2.05 Waivers. Each Pledgor hereby waives any and all notice of the creation,
renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by any
Secured Creditor upon the pledge contained in this ARTICLE II or acceptance of the pledge
contained in this ARTICLE II; the Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the pledge contained in this ARTICLE II and no notice of creation of the
Obligations or any extension of credit already or hereafter contracted by or extended to the
Borrowers need be given to any Pledgor; and all dealings between any Borrower and any of the
Pledgors, on the one hand, and the Secured Creditors, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the pledge contained in this
ARTICLE II. To the extent permitted
by applicable law, each Pledgor waives diligence, presentment, protest, demand for payment and
notice of default or nonpayment to or upon any Borrower or any of the Pledgors with respect to the
Obligations.

     Section 2.06 Pledge Absolute and Unconditional.

     (a) Except as provided in Section 7.12, each Pledgor understands and agrees
that the pledge contained in this ARTICLE II is, and shall be construed as, a
continuing, completed, absolute and unconditional pledge, and each Pledgor hereby waives any
defense of a surety or guarantor or pledgor or any other obligor on any obligations arising
in connection with or in respect of any of the following and hereby agrees that its
obligations hereunder shall not be discharged or otherwise affected as a result of, any of
the following to the extent permitted by applicable law:

6

 

     (i) the invalidity or unenforceability of any Secured Document, any of the
Obligations or any other collateral security therefor or pledge or guarantee or
right of offset with respect thereto at any time or from time to time held by any
Secured Creditor;

     (ii) any defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by any Borrower or
any other Person against any Secured Creditor;

     (iii) the insolvency, bankruptcy arrangement, reorganization, adjustment,
composition, liquidation, disability, dissolution or lack of power of any Borrower
or any other Pledgor or any other Person at any time liable for the payment of all
or part of the Obligations, including any discharge of, or bar or stay against
collecting, any Obligation (or any part of them or interest therein) in or as a
result of such proceeding;

     (iv) any sale, lease or transfer of any or all of the assets of any Borrower or
any other Pledgor, or any changes in the shareholders of any Borrower or the
Pledgor;

     (v) any change in the corporate existence (including its constitution, laws,
rules, regulations or power), structure or ownership of any Pledgor;

     (vi) the fact that any Collateral or Lien contemplated or intended to be given,
created or granted as security for the repayment of the Obligations shall not be
properly perfected or created, or shall prove to be unenforceable or subordinate to
any other Lien, it being recognized and agreed by each of the Pledgors that it is
not entering into this Agreement in reliance on, or in contemplation of the benefits
of, the validity, enforceability, collectibility or value of any of the Collateral
for the Obligations;

     (vii) the absence of any attempt to collect the Obligations or any part of them
from any Pledgor;

     (viii) (A) any Secured Creditor’s election, in any proceeding instituted under
chapter 11 of the Bankruptcy Code, of the application of Section 1111(b)(2) of the
Bankruptcy Code; (B) any borrowing or grant of a Lien by the Borrowers, as
debtor-in-possession, or extension of credit, under Section 364 of the Bankruptcy
Code; (C) the disallowance, under Section 502 of the Bankruptcy Code, of all or any
portion of any Secured Creditor’s claim (or claims) for repayment of the
Obligations; (D) any use of cash collateral under Section 363 of the Bankruptcy
Code; (E) any agreement or stipulation as to the provision of adequate protection in
any bankruptcy proceeding; (F) the avoidance of any Lien in favor of the Secured
Creditors or any of them for any reason; or (G) failure by

7

 

any Secured Creditor to
file or enforce a claim against any Borrower or any Borrower’s estate in any
bankruptcy or insolvency case or proceeding; or

     (ix) any other circumstance or act whatsoever, including any action or omission
of the type described in Section 2.04 (with or without notice to or
knowledge of the Borrowers or such Pledgor), which constitutes, or might be
construed to constitute, an equitable or legal discharge of the Borrowers for the
Obligations, or of such Pledgor under the pledge contained in this ARTICLE
II, in bankruptcy or in any other instance.

     (b) When making any demand hereunder or otherwise pursuing its rights and remedies
hereunder against any Pledgor, any Secured Creditor may, but shall be under no obligation
to, join or make a similar demand on or otherwise pursue or exhaust such rights and remedies
as it may have against any Borrower, any other Pledgor or any other Person or against any
collateral security or pledge or guarantee for the Obligations or any right of offset with
respect thereto, and any failure by any Secured Creditor to make any such demand, to pursue
such other rights or remedies or to collect any payments from any Borrower, any other
Pledgor or any other Person or to realize upon any such collateral security or pledge or
guarantee or to exercise any such right of offset, or any release of any Borrower, any other
Pledgor or any other Person or any such collateral security, guarantee or pledge or right of
offset, shall not relieve any Pledgor of any obligation or liability hereunder, and shall
not impair or affect the rights and remedies, whether express, implied or available as a
matter of law, of any Secured Creditor against any Pledgor. For the purposes hereof
“demand” shall include the commencement and continuance of any legal proceedings.

     Section 2.07 Reinstatement. The pledge contained in this ARTICLE II shall continue
to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof,
of any of the Obligations is rescinded or must otherwise be restored or returned by any Secured
Creditor upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any
Borrower or any Pledgor, or upon or as a result
of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for,
any Borrower or any Pledgor or any substantial part of its Property, or otherwise, all as though
such payments had not been made.

ARTICLE 3

Representations and Warranties

     To induce the US Administrative Agent and the Lenders to enter into the Credit Agreement and
to induce the Lenders to make their respective extensions of credit to the Borrowers thereunder and
to induce the Secured Creditors to enter into Hedging Agreements and Treasury Management Agreements
with the Borrowers and their Restricted Subsidiaries (other than any ABS Subsidiary), each Pledgor
hereby represents and warrants to the US Administrative Agent and each Lender for itself only that:

8

 

     Section 3.01 Ownership of Collateral; Encumbrances. Except as otherwise permitted by the
Credit Agreement, the Pledgors are the record and beneficial owners of the Collateral free and
clear of any Lien except for the security interest created by this Agreement, and the Pledgors have
full right, power and authority to pledge, assign and grant a security interest in the Collateral
to the US Administrative Agent.

     Section 3.02 No Required Consent. No authorization, consent, approval or other action by,
and no notice to or filing with, any governmental authority or regulatory body (other than the
filing of financing statements) is required for (a) the due execution, delivery and performance by
such Pledgor of this Agreement, (b) the grant by such Pledgor of the security interest granted by
this Agreement or (c) the perfection of such security interest.

     Section 3.03 Pledged Securities. The Pledged Securities required to be pledged hereunder
and under the Credit Agreement by such Pledgor are listed on Schedule 2. The shares and
interests of Pledged Securities pledged by such Pledgor hereunder constitute all the issued and
outstanding shares and interests of all classes of the Equity Interests of each Issuer owned by
such Pledgor (or in the case of any Issuer that is a Foreign Subsidiary, 65% of all the issued and
outstanding shares and interests of all classes of the Equity Interests of such Issuer (except as
otherwise noted on Schedule 2)). All the shares and interests of the Pledged Securities
have been duly and validly issued and are fully paid and nonassessable, and such Pledgor is the
record and beneficial owner of, and has good title to, the Pledged Securities pledged by it
hereunder, free of any and all Liens or options in favor of, or claims of, any other Person, except
the security interest created by this Agreement or as permitted under the Credit Agreement, and has
the power to transfer the Pledged Securities in which a Lien is granted by it hereunder, free and
clear of any other Lien except as permitted under the Credit Agreement.

     Section 3.04 First Priority Security Interest. The pledge of Pledged Securities
pursuant to this Agreement and the filing of appropriate
financing statements in the locations described on Schedule 3 create a valid and perfected
first priority security interest in the Collateral, enforceable against such Pledgor and all third
parties and securing payment of the Obligations; provided that, in the case of a Foreign
Subsidiary, the laws of the jurisdiction of formation of such Foreign Subsidiary may require
further action to perfect such security interests and may affect the priority of such security
interests.

     Section 3.05 Collateral. All statements to other factual information provided by such
Pledgor to the US Administrative Agent describing or with respect to the Collateral is or (in the
case of subsequently furnished information) will be when provided correct and complete in all
material respects.

     Section 3.06 Pledgor’s Location. On the date hereof, the correct legal name of such
Pledgor, such Pledgor’s jurisdiction of organization and organizational number, and the location(s)
of such Pledgor’s chief executive office or sole place of business are specified on Schedule
4.

9

 

     Section 3.07 Benefit to the Pledgor. The Borrowers are members of an affiliated group of
companies that includes each Pledgor. Each Pledgor is a Subsidiary of the US Borrower, and its
guaranty and surety obligations pursuant to this Agreement reasonably may be expected to benefit,
directly or indirectly, the Borrowers, and it has determined that this Agreement is necessary and
convenient to the conduct, promotion and attainment of the business of such Pledgor and the
Borrowers.

ARTICLE 4

Covenants and Agreements

     Each Pledgor covenants and agrees with the US Administrative Agent and the Lenders for itself
only that, from and after the date of this Agreement until the Obligations under the Credit
Agreement shall have been paid in full in cash, no Letter of Credit shall be outstanding (except
for Letters of Credit secured by cash collateral or one or more Support Letters of Credit as
permitted in Section 2.01(b)(iii) of the Credit Agreement) and all of the Aggregate Commitments
shall have terminated:

     Section 4.01 Covenants in Credit Agreement. In the case of each Pledgor, such Pledgor
shall take, or shall refrain from taking, as the case may be, each action that is necessary to be
taken or not taken, as the case may be, so that no Default or Event of Default is caused by the
failure to take such action or to refrain from taking such action by such Pledgor or any of its
Restricted Subsidiaries.

     Section 4.02 Maintenance of Perfected Security Interest; Further Documentation. Except as set
forth in the Credit Agreement, including, without limitation, any merger,
consolidation, liquidation, sale, assignment, transfer or other disposition permitted by Section
10.08 or 10.14 of the Credit Agreement, each Pledgor agrees that:

          (a) it shall maintain the security interest created by this Agreement as a perfected security
interest having at least the priority described in Section 3.04 and shall defend such
security interest against the claims and demands of all Persons whomsoever;

          (b) it will furnish to the US Administrative Agent and the Lenders from time to time
statements and schedules further identifying and describing the Collateral and such other reports
in connection with the Collateral as the US Administrative Agent may reasonably request, all in
reasonable detail; and

          (c) at any time and from time to time, upon the written request of the US Administrative
Agent, and at the sole expense of such Pledgor, it will promptly and duly execute and deliver, and
have recorded, such further instruments and documents and take such further actions as the US
Administrative Agent may reasonably deem necessary for the purpose of obtaining or preserving the
full benefits of this Agreement and of the rights and powers herein granted, including, without
limitation, the delivery of certificated securities and the filing of any financing or continuation
statements under the UCC (or other similar domestic laws) in effect in any jurisdiction with
respect to the security interests created hereby.

10

 

     Section 4.03 Changes in Locations, Name, Etc. Such Pledgor recognizes that financing
statements pertaining to the Collateral have been or may be filed where such Pledgor is organized.
Without limitation of Section 9.03 of the Credit Agreement or any other covenant herein, such
Pledgor will not cause or permit any change in (a) its corporate name, (b) its identity or
corporate structure or in the jurisdiction in which it is incorporated or formed, (c) its
jurisdiction of organization or its organizational identification number in such jurisdiction of
organization or (d) its federal taxpayer identification number, unless, in each case, such Pledgor
shall have first (i) notified the US Administrative Agent of such change prior to the effective
date of such change, and (ii) taken all action reasonably requested by the US Administrative Agent
for the purpose of maintaining the perfection and priority of the US Administrative Agent’s
security interests under this Agreement. In any notice furnished pursuant to this Section
4.03, such Pledgor will expressly state in a conspicuous manner that the notice is required by
this Agreement and contains facts that may require additional filings of financing statements or
other notices for the purposes of continuing perfection of the US Administrative Agent’s security
interest in the Collateral.

     Section 4.04 Pledged Securities. In the case of each Pledgor, such Pledgor agrees that:

          (a) if such Pledgor shall become entitled to receive or shall receive any Equity Interest
certificate (including, without limitation, any certificate representing an Equity Interest
dividend or a distribution in connection with any reclassification, increase or reduction of
capital
or any certificate issued in connection with any reorganization), option or rights in respect
of the Pledged Securities of any Issuer, whether in addition to, in substitution of, as a
conversion of, or in exchange for, any shares or interests of the Pledged Securities, or otherwise
in respect thereof, such Pledgor shall accept the same as the agent of the Secured Creditors, hold
the same in trust for the Secured Creditors, segregated from other Property of such Pledgor, and
deliver the same forthwith to the US Administrative Agent in the exact form received, duly indorsed
by such Pledgor to the US Administrative Agent, if required, together with an undated stock power
covering such certificate duly executed in blank by such Pledgor and with, if the US Administrative
Agent so requests, signature guaranteed, to be held by the US Administrative Agent, subject to the
terms hereof, as additional collateral security for the Obligations; provided that the
foregoing shall apply only to 65% of such shares, interests or rights in the case of an Issuer that
is a Foreign Subsidiary;

          (b) without the prior written consent of the US Administrative Agent, such Pledgor will not,
unless otherwise expressly permitted hereby or under the other Loan Documents, (i) vote to enable,
or take any other action to permit, any Issuer to issue any Equity Interests of any nature or to
issue any other securities convertible into or granting the right to purchase or exchange for any
Equity Interests of any nature of any Issuer, (ii) sell, assign, transfer, exchange, or otherwise
dispose of, or grant any option with respect to, the Pledged Securities or Proceeds thereof, (iii)
create, incur or permit to exist any Lien or option in favor of, or any claim of any Person with
respect to, any of the Pledged Securities or Proceeds thereof, or any interest therein, except for
the security interests created by this Agreement or (iv) enter into any agreement or undertaking
restricting the right or ability of such Pledgor or the US Administrative Agent to sell, assign or
transfer any of the Pledged Securities or Proceeds thereof;

11

 

          (c) in the case of each Pledgor that is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the US
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 4.04(a) with respect to the Pledged Securities issued by it and (iii) the terms of
Section 5.02(a) and Section 5.03 shall apply to it, mutatis mutandis, with respect
to all actions that may be required of it pursuant to Section 5.02(d) or Section
5.03 with respect to the Pledged Securities issued by it;

          (d) such Pledgor shall furnish to the US Administrative Agent such stock powers and other
instruments as may be reasonably required by the US Administrative Agent to assure the
transferability of the Pledged Securities when and as often as may be reasonably requested by the
US Administrative Agent; and

          (e) the Pledged Securities (except for LP Units and Subordinated Units) will at all times
constitute not less than 100% of the Equity Interests of the Issuer thereof owned by any Pledgor
(or in the case of any Issuer that is a Foreign Subsidiary, not less than 65% of the Equity
Interests of such Issuer (except as otherwise noted on Schedule 2)). Such Pledgor will not
permit any Issuer (other than EPLP) of any of the Pledged Securities to issue any new shares
or interests of any class of Equity Interests of such Issuer unless such shares are pledged
pursuant to this Agreement.

          (f) Notwithstanding any contrary provisions contained in this Agreement, with respect to
Issuers that are Foreign Subsidiaries, the Pledgors are required to pledge 65% of the Equity
Interests of such Issuers (except as otherwise noted on Schedule 2) and to deliver the
applicable certificates and stock powers duly executed in blank for such Equity Interests to the US
Administrative Agent but shall not be required to take any additional actions to perfect the
security interest of the Secured Creditors in such Pledged Securities.

     Section 4.05 Article 8 of the UCC. To the extent that any Pledgor has opted into Article 8
of the UCC, such Pledgor may not opt out of Article 8 of the UCC without the prior written consent
of the US Administrative Agent.

ARTICLE 5

Remedial Provisions

     Section 5.01 UCC and Other Remedies.

          (a) Upon the occurrence and during the continuance of an Event of Default, the US
Administrative Agent, on behalf of the Secured Creditors, may exercise, in addition to all other
rights and remedies granted to them in this Agreement, the other Loan Documents and in any other
instrument or agreement securing, evidencing or relating to the Obligations, all rights and
remedies of a secured party under the UCC or any other applicable law or otherwise available at law
or equity. Without limiting the generality of the foregoing, the US Administrative Agent, without
demand of performance or other demand, presentment, protest,

12

 

advertisement or notice of any kind
(except any notice required by applicable law) to or upon any Pledgor or any other Person (all and
each of which demands, defenses, advertisements and notices are hereby waived), may in such
circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part
thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing),
in one or more parcels at public or private sale or sales, at any exchange, broker’s board or
office of any Secured Creditor or elsewhere upon such commercially reasonable terms and conditions
as it may deem advisable and at such commercially reasonable prices as it may deem best, for cash
or on credit or for future delivery without assumption of any credit risk. Any Secured Creditor
shall have the right upon any such public sale or sales, and, to the extent permitted by applicable
law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in any Pledgor, which right or equity is hereby
waived and released. Any such sale or transfer by the US Administrative Agent either to itself or
to any other Person shall, to the fullest extent permitted under applicable law, be absolutely free
from any claim of right by any Pledgor, including any equity or right of redemption, stay or
appraisal which any Pledgor has or
may have under any rule of law, regulation or statute now existing or hereafter adopted (and
such Pledgor hereby waives any rights it may have in respect thereof). Upon any such sale or
transfer, the US Administrative Agent shall have the right to deliver, assign and transfer to the
purchaser or transferee thereof the Collateral so sold or transferred. The US Administrative Agent
shall apply the net proceeds of any action taken by it pursuant to this Section 5.01, after
deducting all reasonable costs and expenses of every kind incurred in connection therewith or
incidental to the care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the US Administrative Agent and the Secured Creditors hereunder,
including, without limitation, reasonable attorneys’ fees and disbursements, to the payment in
whole or in part of the Obligations, in accordance with the Credit Agreement, and only after such
application and after the payment by the US Administrative Agent of any other amount required by
any provision of law, including, without limitation, Section 9.615 of the UCC, need the US
Administrative Agent account for the surplus, if any, to any Pledgor. To the extent permitted by
applicable law, each Pledgor waives all claims, damages and demands it may acquire against the US
Administrative Agent or any Secured Creditor arising out of the exercise by them of any rights
hereunder. If any notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before
such sale or other disposition.

          (b) In the event that the US Administrative Agent elects not to sell the Collateral, the US
Administrative Agent retains its rights to dispose of or utilize the Collateral or any part or
parts thereof in any manner authorized or permitted by law or in equity, and to apply the proceeds
of the same towards payment of the Obligations. Each and every method of disposition of the
Collateral described in this Agreement shall constitute disposition in a commercially reasonable
manner.

          (c) The US Administrative Agent may appoint any Person as agent to perform any act or acts
necessary or incident to any sale or transfer of the Collateral.

13

 

     Section 5.02 Pledged Securities.

          (a) Unless an Event of Default shall have occurred and be continuing and the US Administrative
Agent shall have given notice to the relevant Pledgor of the US Administrative Agent’s intent to
exercise its corresponding rights pursuant to Section 5.02, each Pledgor shall be permitted
to receive all cash dividends paid in respect of the Pledged Securities paid in the normal course
of business of the relevant Issuer, to the extent permitted in the Credit Agreement, and to
exercise all voting, consent and corporate rights with respect to the Pledged Securities;
provided, however, that no vote shall be cast, consent given or right exercised or
other action taken by such Pledgor that would impair the Collateral or result in any violation of
any provision of the Credit Agreement, this Agreement or any other Loan Document or, without the
prior consent of the US Administrative Agent, enable or permit any Issuer of Pledged Securities to
issue any Equity Interests or to issue any other securities convertible into or granting the right
to purchase or exchange for any Equity Interests of any Issuer of Pledged Securities other
than as permitted by the Loan Documents.

          (b) Upon the occurrence and during the continuance of an Event of Default, upon notice by the
US Administrative Agent of its intent to exercise such rights to the relevant Pledgor or Pledgors,
(i) the US Administrative Agent shall have the right to receive any and all cash dividends,
payments, Property or other Proceeds paid in respect of the Pledged Securities and make application
thereof to the Obligations in accordance with the Credit Agreement, and (ii) any or all of the
Pledged Securities shall be registered in the name of the US Administrative Agent or its nominee,
and (iii) the US Administrative Agent or its nominee may exercise (A) all voting, consent,
corporate and other rights pertaining to such Pledged Securities at any meeting of shareholders (or
other equivalent body) of the relevant Issuer or Issuers or otherwise and (B) any and all rights of
conversion, exchange and subscription and any other rights, privileges or options pertaining to
such Pledged Securities as if it were the absolute owner thereof (including, without limitation,
the right to exchange at its discretion any and all of the Pledged Securities upon the merger,
consolidation, reorganization, recapitalization or other fundamental change in the organizational
structure of any Issuer, or upon the exercise by any Pledgor or the US Administrative Agent of any
right, privilege or option pertaining to such Pledged Securities, and in connection therewith, the
right to deposit and deliver any and all of the Pledged Securities with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and conditions as the US
Administrative Agent may determine), all without liability except to account for Property actually
received by it, but the US Administrative Agent shall have no duty to any Pledgor to exercise any
such right, privilege or option and shall not be responsible for any failure to do so or delay in
so doing.

          (c) In order to permit the US Administrative Agent to exercise the voting and other consensual
rights that it may be entitled to exercise pursuant hereto and to receive all dividends and other
distributions that it may be entitled to receive hereunder, (i) each Pledgor shall promptly execute
and deliver (or cause to be executed and delivered) to the US Administrative Agent all such
proxies, dividend payment orders and other instruments as the US Administrative Agent may from time
to time reasonably request and (ii) without limiting the effect of clause (i) above, such Pledgor
hereby grants to the US Administrative Agent an

14

 

irrevocable proxy to vote all or any part of the
Pledged Securities and to exercise all other rights, powers, privileges and remedies to which a
holder of the Pledged Securities would be entitled (including giving or withholding written
consents of shareholders calling special meetings of shareholders and voting at such meetings),
which proxy shall be effective, automatically and without the necessity of any action (including
any transfer of any Pledged Securities on the record books of the Issuer thereof) by any other
Person (including the Issuer of such Pledged Securities or any officer or agent thereof) upon the
occurrence and during the continuance of an Event of Default and which proxy shall only terminate
upon the earlier of (x) the absence any Event of Default and (y) the payment in full in cash of the
Obligations under the Credit Agreement.

          (d) Each Pledgor hereby authorizes and instructs each Issuer of any Pledged Securities pledged
by such Pledgor hereunder to (i) comply with any instruction received by it
from the US Administrative Agent in writing that (A) states that an Event of Default has
occurred and is continuing and (B) is otherwise in accordance with the terms of this Agreement,
without any other or further instructions from such Pledgor, and each Pledgor agrees that each
Issuer shall be fully protected in so complying and (ii) unless otherwise expressly permitted
hereby, pay any dividends or other payments with respect to the Pledged Securities directly to the
US Administrative Agent.

          (e) Upon the occurrence and during the continuance of an Event of Default, if the Issuer of
any Pledged Securities is the subject of bankruptcy, insolvency, receivership, custodianship or
other proceedings under the supervision of any Governmental Authority, then all rights of each
Pledgor in respect thereof to exercise the voting and other consensual rights which such Pledgor
would otherwise be entitled to exercise with respect to the Pledged Securities issued by such
Issuer shall cease, and all such rights shall thereupon become vested in the US Administrative
Agent who shall thereupon have the sole right to exercise such voting and other consensual rights,
but the US Administrative Agent shall have no duty to exercise any such voting or other consensual
rights and shall not be responsible for any failure to do so or delay in so doing.

     Section 5.03 Private Sales of Pledged Securities.

          (a) Each Pledgor recognizes that the US Administrative Agent may be unable to effect a public
sale of any or all the Pledged Securities, by reason of certain prohibitions contained in the
Securities Act and applicable state securities laws or otherwise or may determine that a public
sale is impracticable or not commercially reasonable and, accordingly, may resort to one or more
private sales thereof to a restricted group of purchasers which will be obliged to agree, among
other things, to acquire such securities for their own account for investment and not with a view
to the distribution or resale thereof. Each Pledgor acknowledges and agrees that any such private
sale may result in prices and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner. The US Administrative Agent shall be under no obligation
to delay a sale of any of the Pledged Securities for the period of time necessary to permit the
Issuer thereof to register such securities

15

 

for public sale under the Securities Act, or under
applicable state securities laws, even if such Issuer would agree to do so.

          (b) Each Pledgor agrees to use its best commercially reasonable efforts to do or cause to be
done all such other acts as may reasonably be necessary to make such sale or sales of all or any
portion of the Pledged Securities pursuant to this Section 5.03 valid and binding and in
compliance with any and all other applicable Governmental Requirements; provided,
however, that such Pledgor shall not be required to register such securities for public
sale under the Securities Act. Each Pledgor further agrees that a breach of any of the covenants
contained in this Section 5.03 will cause irreparable injury to the Secured Creditors, that
the Secured Creditors have no adequate remedy at law in respect of such breach and, as a
consequence, that
each and every covenant contained in this Section 5.03 shall be specifically
enforceable against such Pledgor, and such Pledgor hereby waives and agrees not to assert any
defenses against an action for specific performance of such covenants except for a defense that no
Event of Default has occurred or is continuing under the Credit Agreement.

     Section 5.04 Non-Judicial Enforcement. The US Administrative Agent may enforce its rights
hereunder without prior judicial process or judicial hearing, and to the extent permitted by law,
each Pledgor expressly waives any and all legal rights which might otherwise require the US
Administrative Agent to enforce its rights by judicial process.

ARTICLE 6

The US Administrative Agent

     Section 6.01 US Administrative Agent’s Appointment as Attorney-in-Fact, Etc.

          (a) Anything in this Section 6.01(a) to the contrary notwithstanding, the US
Administrative Agent agrees that it will not exercise any rights under the power of attorney
provided for in this Section 6.01(a) unless an Event of Default shall have occurred and be
continuing. Each Pledgor hereby irrevocably constitutes and appoints the US Administrative Agent
and any officer or agent thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and stead of such Pledgor
and in the name of such Pledgor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take any and all reasonably appropriate action and to execute any and all
documents and instruments which may be reasonably necessary or desirable to accomplish the purposes
of this Agreement, and, without limiting the generality of the foregoing, each Pledgor hereby gives
the US Administrative Agent the power and right, on behalf of such Pledgor, without notice to or
assent by such Pledgor, to do any or all of the following:

     (i) unless being disputed under Section 9.03(a) of the Credit Agreement, pay or
discharge Taxes and Liens levied or placed on or threatened against the Collateral;

16

 

     (ii) execute, in connection with any sale provided for in Section 5.01
or Section 5.03, any endorsements, assignments or other instruments of
conveyance or transfer with respect to the Collateral; and

     (iii) (A) direct any party liable for any payment under any of the Collateral
to make payment of any and all moneys due or to become due thereunder directly to
the US Administrative Agent or as the US Administrative Agent shall direct; (B) ask
or demand for, collect, and receive payment of and receipt for, any and all moneys,
claims and other amounts due or to become due at any time in respect of or arising
out of any Collateral; (C) in the name of such
Pledgor or its own name, or otherwise, take possession of and indorse and
collect any check, draft, note, acceptance or other instrument for the payment of
moneys due with respect to any Collateral and commence and prosecute any suits,
actions or proceedings at law or in equity in any court of competent jurisdiction to
collect the Collateral or any portion thereof and to enforce any other right in
respect of any Collateral; (D) defend any suit, action or proceeding brought against
such Pledgor with respect to any Collateral; (E) settle, compromise or adjust any
such suit, action or proceeding and, in connection therewith, give such discharges
or releases as the US Administrative Agent may deem appropriate; and (F) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal with
any of the Collateral as fully and completely as though the US Administrative Agent
were the absolute owner thereof for all purposes, and do, at the US Administrative
Agent’s option and such Pledgor’s expense, at any time, or from time to time, all
acts and things which the US Administrative Agent deems necessary to protect,
preserve or realize upon the Collateral and the US Administrative Agent’s and the
Secured Creditors’ security interests therein and to effect the intent of this
Agreement, all as fully and effectively as such Pledgor might do.

          (b) If any Pledgor fails to perform or comply with any of its agreements contained herein
within the applicable grace periods, the US Administrative Agent, at its option, but without any
obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such
agreement.

          (c) The reasonable expenses of the US Administrative Agent incurred in connection with actions
undertaken as provided in this Section 6.01, together with interest thereon at a rate per
annum equal to the Post-Default Rate, but in no event to exceed the Highest Lawful Rate, from the
date of payment by the US Administrative Agent to the date reimbursed by the relevant Pledgor,
shall be payable by such Pledgor to the US Administrative Agent on demand.

          (d) All powers, authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the security interests created
hereby are released.

17

 

     Section 6.02 Duty of US Administrative Agent. The US Administrative Agent’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral in its possession,
under Section 9.207 of the UCC or otherwise, shall be to deal with it in the same manner as the US
Administrative Agent deals with similar Property for its own account and shall be deemed to have
exercised reasonable care in the custody and preservation of the Collateral in its possession if
the Collateral is accorded treatment substantially equal to that which comparable secured parties
accord comparable collateral. To the fullest extent permitted under applicable law, neither the US
Administrative Agent, any Secured Creditor nor any of their respective officers, directors,
employees or agents shall be
liable for failure to demand, collect or realize upon any of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Pledgor or any other Person or to take any other action whatsoever with regard to
the Collateral or any part thereof. The powers conferred on the US Administrative Agent and the
Secured Creditors hereunder are solely to protect the US Administrative Agent’s and the Secured
Creditors’ interests in the Collateral and shall not impose any duty upon the US Administrative
Agent or any Secured Creditor to exercise any such powers. The US Administrative Agent and the
Secured Creditors shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither they nor any of their officers, directors, employees or
agents shall be responsible to any Pledgor for any act or failure to act hereunder, except for
their own gross negligence or willful misconduct. To the fullest extent permitted by applicable
law, the US Administrative Agent shall be under no duty whatsoever to make or give any presentment,
notice of dishonor, protest, demand for performance, notice of non-performance, notice of intent to
accelerate, notice of acceleration, or other notice or demand in connection with any Collateral or
the Obligations, or to take any steps necessary to preserve any rights against any Pledgor or other
Person or ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Collateral, whether or not it has or is deemed to have
knowledge of such matters. Each Pledgor, to the extent permitted by applicable law, waives any
right of marshaling in respect of any and all Collateral, and waives any right to require the US
Administrative Agent or any Secured Creditor to proceed against any Pledgor or other Person,
exhaust any Collateral or enforce any other remedy which the US Administrative Agent or any Secured
Creditor now has or may hereafter have against each Pledgor, any Pledgor or other Person.

     Section 6.03 Filing of Financing Statements. Pursuant to the UCC and any other applicable
law, each Pledgor authorizes the US Administrative Agent to file or record financing statements and
other filing or recording documents or instruments with respect to the Collateral in such form and
in such offices as the US Administrative Agent reasonably determines appropriate to perfect the
security interests of the US Administrative Agent under this Agreement. A photographic or other
reproduction of this Agreement shall be sufficient as a financing statement or other filing or
recording document or instrument for filing or recording in any jurisdiction.

     Section 6.04 Authority of US Administrative Agent. Each Pledgor acknowledges that the
rights and responsibilities of the US Administrative Agent under this Agreement with respect to any
action taken by the US Administrative Agent or the exercise or non-exercise by the US

18

 

Administrative Agent of any option, voting right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this Agreement shall, as between the US
Administrative Agent and the Secured Creditors, be governed by the Credit Agreement and by such
other agreements with respect thereto as may exist from time to time among them, but, as between
the US Administrative Agent and the Pledgors, the US Administrative Agent shall be conclusively
presumed to be acting as agent for the Secured Creditors with full and valid authority so to act or
refrain from acting, and no
Pledgor shall be under any obligation, or entitlement, to make any inquiry respecting such
authority.

ARTICLE 7

Miscellaneous

     Section 7.01 Waiver. No failure on the part of the US Administrative Agent or any Secured
Creditor to exercise and no delay in exercising, and no course of dealing with respect to, any
right, power, privilege or remedy or any abandonment or discontinuance of steps to enforce such
right, power, privilege or remedy under this Agreement or any other Loan Document shall operate as
a waiver thereof, nor shall any single or partial exercise of any right, power, privilege or remedy
under this Agreement or any other Loan Document preclude or be construed as a waiver of any other
or further exercise thereof or the exercise of any other right, power, privilege or remedy. The
remedies provided herein are cumulative and not exclusive of any remedies provided by law or
equity.

     Section 7.02 Notices. All notices and other communications provided for herein shall be
given in the manner and subject to the terms of Section 13.02 of the Credit Agreement;
provided that any such notice, request or demand to or upon any Pledgor shall be addressed
to such Pledgor at its notice address set forth on Schedule 1.

     Section 7.03 Amendments in Writing. None of the terms or provisions of this Agreement may
be waived, amended, supplemented or otherwise modified except in accordance with Section 13.04 of
the Credit Agreement.

     Section 7.04 Successors and Assigns. The provisions of this Agreement shall be binding
upon the Pledgors and their successors and permitted assigns and shall inure to the benefit of the
US Administrative Agent and the Secured Creditors and their respective successors and permitted
assigns; provided that no Pledgor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the US Administrative Agent
and the Lenders unless otherwise permitted by the terms of the Credit Agreement or this Agreement,
and any such purported assignment, transfer or delegation shall be null and void.

     Section 7.05 Survival; Revival; Reinstatement.

          (a) All covenants, agreements, representations and warranties made by any Pledgor herein and
in the certificates or other instruments delivered in connection with or pursuant to this Agreement
or any other Loan Document to which it is a party shall be
considered to have been relied upon by the US Administrative Agent, the other Agents, the

19

 

Issuing Bank and the Lenders and shall survive the execution and delivery of this Agreement and the
making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the US Administrative Agent, the
other Agents, the Issuing Bank or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall
continue in full force and effect as long as the principal of or any accrued interest on any Loan
or any fee or any other amount payable under the Credit Agreement is outstanding and unpaid or any
Letter of Credit is outstanding (except for Letters of Credit secured by cash collateral or one or
more Support Letters of Credit as permitted in Section 2.01(b)(iii) of the Credit Agreement) and so
long as the Aggregate Commitments have not expired or terminated.

          (b) To the extent that any payments on the Obligations or proceeds of any Collateral are
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be
repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law,
common law or equitable cause, then to such extent, the Obligations so satisfied shall be revived
and continue as if such payment or proceeds had not been received and the US Administrative Agent’s
and the Secured Creditors’ Liens, security interests, rights, powers and remedies under this
Agreement and each other Loan Document shall continue in full force and effect. In such event,
each Loan Document shall be automatically reinstated and the Pledgors shall take such action as may
be reasonably requested by the US Administrative Agent and the Secured Creditors to effect such
reinstatement.

     Section 7.06 Counterparts; Integration; Effectiveness; Conflicts.

          (a) This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract.

          (b) This Agreement and the other Loan Documents embody the entire agreement and
understanding between the parties and supersede all other agreements and understandings between
such parties relating to the subject matter hereof and thereof. This Agreement and the Loan
Documents represent the final agreement between the parties and may not be contradicted by evidence
of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten
oral agreements between the parties.

          (c) This Agreement shall become effective when it shall have been executed by the US
Administrative Agent and when the US Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto, the Lenders and their
respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.

20

 

          (d) In the event of a conflict between the provisions hereof and the provisions of the Credit
Agreement, the provisions of the Credit Agreement shall control.

     Section 7.07 Severability. Any provision of this Agreement or any other Loan Document held
to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof or thereof; and the
invalidity of a particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction.

     Section 7.08 Governing Law; Submission to Jurisdiction.

          (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF TEXAS.

          (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS OR OF THE UNITED STATES OF AMERICA FOR THE
SOUTHERN DISTRICT OF TEXAS IN HOUSTON, TEXAS, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT,
EACH OF THE PARTIES HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF
ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING
OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO
JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER
ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION.

          (c) EACH PLEDGOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED
COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
MAIL, POSTAGE PREPAID, TO SUCH PLEDGOR AT ITS ADDRESS SET FORTH ON SCHEDULE 1 HERETO OR AS
UPDATED FROM TIME TO TIME, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING.

          (d) NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE US ADMINISTRATIVE AGENT OR ANY LENDER OR ANY
HOLDER OF A NOTE TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR
OTHERWISE PROCEED AGAINST THE PLEDGORS IN ANY OTHER JURISDICTION.

21

 

          (e) EACH PARTY HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY
SECURITY INSTRUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVES, TO THE MAXIMUM
EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY
SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO,
ACTUAL DAMAGES; (iii) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OF THE US
ADMINISTRATIVE AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR
IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVERS, AND (iv) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE SECURITY
INSTRUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION 7.08.

     Section 7.09 Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

     Section 7.10 Acknowledgments. Each Pledgor hereby acknowledges that:

          (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

          (b) neither the US Administrative Agent nor any Secured Creditor has any fiduciary
relationship with or duty to any Pledgor arising out of or in connection with this Agreement or any
of the other Loan Documents, and the relationship between the Pledgors, on the one hand, and the US
Administrative Agent and Secured Creditors, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor;

          (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Secured Creditors or among the Pledgors
and the Secured Creditors; and

          (d) Each of the parties hereto specifically agrees that it has a duty to read this Agreement,
the Security Instruments and the other Loan Documents and agrees that it is charged
with notice and knowledge of the terms of this Agreement, the Security Instruments and the
other Loan Documents; that it has in fact read this Agreement, the Security Instruments and the
other Loan Documents and is fully informed and has full notice and knowledge of the terms,
conditions and effects thereof; that it has been represented by independent legal counsel of its
choice throughout the negotiations preceding its execution of this Agreement and the Security
Instruments; and has received the advice of its attorney in entering into this Agreement and the
Security Instruments; and that it recognizes that certain of the terms of this Agreement and the

22

 

Security Instruments result in one party assuming the liability inherent in some aspects of the
transaction and relieving the other party of its responsibility for such liability. EACH PARTY
HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY
EXCULPATORY PROVISION OF THIS AGREEMENT AND THE SECURITY INSTRUMENTS ON THE BASIS THAT THE PARTY
HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.”

     Section 7.11 Additional Pledgors and Pledgors. Each Subsidiary that is required to become
a party to this Agreement pursuant to Section 9.07(a) of the Credit Agreement shall become a
Pledgor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an
Assumption Agreement in the form of Annex I hereto and shall thereafter have the same
rights, benefits and obligations as a Pledgor party hereto on the date hereof. Each Pledgor that
is required to pledge the Equity Interests of its Subsidiaries pursuant to Section 9.07(a) of the
Credit Agreement shall execute and deliver a Supplement in the form of Annex II hereto, if
such Equity Interests were not previously pledged.

     Section 7.12 Releases.

          (a) Full Release. The grant of a security interest hereunder and all of rights,
powers and remedies in connection herewith shall remain in full force and effect until the US
Administrative Agent has (i) retransferred and delivered all Collateral in its possession to the
Pledgors and (ii) executed a written release or termination statement and reassigned to the
Pledgors without recourse or warranty any remaining Collateral and all rights conveyed hereby in
accordance with the next sentence. Pursuant to the satisfaction of the conditions set forth in
Section 9.07(d)(iv) of the Credit Agreement or upon the complete payment of the Obligations under
the Credit Agreement (except for Letters of Credit secured by cash collateral or one or more
Support Letters of Credit as permitted in Section 2.01(b)(iii) of the Credit Agreement) and the
compliance by the Pledgors with all covenants and agreements hereof and the termination of the
Aggregate Commitments, the US Administrative Agent, at the written request and expense of the
Borrowers, will promptly release, reassign and transfer pursuant to Section 9.07(d) of the Credit
Agreement the Collateral to the Pledgors and declare this Agreement to be of no further force or
effect.

          (b) Partial Release. Notwithstanding anything contained herein to the contrary, the
Pledgors are authorized to release pursuant to Section 9.07(d) of the Credit Agreement any
Collateral that is Transferred in compliance with Sections 10.08 and 10.14 of the Credit Agreement
at which point the liens and security interests shall terminate with respect to such Collateral and
this Agreement shall have no further force or effect with respect to such released Collateral;
provided that so long as the lien in favor of the US Administrative Agent continues in the
proceeds of such Transfer of such Collateral, or to the extent such Collateral is Transferred to
any Borrower or any Subsidiary Guarantor, such lien continues in such Collateral.

          (c) Retention in Satisfaction. Except as may be expressly applicable pursuant to
Section 9.620 of the UCC, no action taken or omission to act by the US Administrative Agent

23

 

or the
Secured Creditors hereunder, including, without limitation, any exercise of voting or consensual
rights or any other action taken or inaction, shall be deemed to constitute a retention of the
Collateral in satisfaction of the Obligations or otherwise to be in full satisfaction of the
Obligations, and the Obligations shall remain in full force and effect, until the US Administrative
Agent and the Secured Creditors shall have applied payments (including, without limitation,
collections from Collateral) towards the Obligations in the full amount then outstanding or until
such subsequent time as is provided in Section 7.12(a).

     Section 7.13 Acceptance. Each Pledgor hereby expressly waives notice of acceptance of this
Agreement, acceptance on the part of the US Administrative Agent and the Secured Creditors being
conclusively presumed by their request for this Agreement and delivery of the same to the US
Administrative Agent.

[Signatures Begin Next Page]

24

 

     IN WITNESS WHEREOF, each of the undersigned has caused this Pledge Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	PLEDGORS:	 	EXTERRAN HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Anderson
	 

	 	 	 	 
	 	 	Name: J. Michael Anderson
	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	EXTERRAN, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Anderson
	 

	 	 	 	 
	 	 	Name: J. Michael Anderson
	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	EXTERRAN ENERGY SOLUTIONS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	HANOVER COMPRESSION GENERAL HOLDINGS LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brian A. Matusek
	 

	 	 	 	 
	 	 	Name: Brian A. Matusek
	 	 	Title: President and Manager
	 
	 	 	 	 
	 	 	HANOVER COMPRESSION GENERAL HOLDINGS LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Brian A. Matusek
	 

	 	 	 	 
	 	 	Name: Brian A. Matusek
	 	 	Title: President and Manager

Signature Page — US Pledge Agreement

 

 

	 	 	 	 	 
	 	 	HANOVER HL, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles R. Scott
	 

	 	 	 	 
	 	 	Name: Charles R. Scott
	 	 	Title: President and Manager
	 
	 	 	 	 
	 	 	ENTERRA COMPRESSION INVESTMENT COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Anderson
	 

	 	 	 	 
	 	 	Name: J. Michael Anderson
	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	UCI MLP LP LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Pamela A. Jasinski
	 

	 	 	 	 
	 	 	Name: Pamela A. Jasinski
	 	 	Title: Manager
	 
	 	 	 	 
	 	 	UCO GENERAL PARTNER, LP
	 
	 	 	 	 
	 	 	By: UCO GP, LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Anderson
	 

	 	 	 	 
	 	 	Name: J. Michael Anderson
	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	UCI GP LP LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Pamela A. Jasinksi
	 

	 	 	 	 
	 	 	Name: Pamela A. Jasinski
	 	 	Title: Manager

Signature Page — US Pledge Agreement

 

 

	 	 	 	 	 
	 	 	UCO GP, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Anderson
	 

	 	 	 	 
	 	 	Name: J. Michael Anderson
	 	 	Title: Senior Vice President

Signature Page — US Pledge Agreement

 

 

	 	 	 	 	 
	US ADMINISTRATIVE AGENT:	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Todd Schanzlin
	 

	 	 	 	 
	 	 	Name: Todd Schanzlin
	 	 	Title: Director

Signature Page — US Pledge Agreement

 

 

Annex I

ASSUMPTION AGREEMENT

     This ASSUMPTION AGREEMENT, dated as of [ ], 200[ ], made by [
], a [ ] (the “Additional Pledgor”), in favor of Wachovia Bank, National
Association, as administrative agent (in such capacity, the “US Administrative Agent”) for
the banks and other financial institutions (the “Lenders”) from time to time parties to the
Credit Agreement (defined below) and, in the case of any Secured Hedging Agreement or any Secured
Treasury Management Agreement referred to in the Pledge Agreement (defined below), any Lender
Affiliate (as defined in the Credit Agreement). All capitalized terms not defined herein shall
have the meaning ascribed to them in such Credit Agreement.

W I T N E S S E T H:

     WHEREAS, Exterran Holdings, Inc., a Delaware corporation (the “US Borrower”) and
Exterran Canada, Limited Partnership, a Nova Scotia limited partnership (the “Canadian
Borrower” and together with the US Borrower, the “Borrowers”), the Administrative
Agents, the Lenders and the other Agents party thereto have entered into a Senior Secured Credit
Agreement dated August 20, 2007 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”);

     WHEREAS, in connection with the Credit Agreement, certain Affiliates (other than the
Additional Pledgor) of the Borrowers have entered into the US Pledge Agreement, dated as of August
20, 2007 (as amended, supplemented or otherwise modified from time to time, the “US Pledge
Agreement”) in favor of the US Administrative Agent for the benefit of the Secured Creditors;

     WHEREAS, the Credit Agreement requires the Additional Pledgor to become a party to the Pledge
Agreement; and

     WHEREAS, the Additional Pledgor has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Pledge Agreement;

     NOW, THEREFORE, IT IS AGREED:

     1. Pledge Agreement. By executing and delivering this Assumption Agreement, the
Additional Pledgor, as provided in Section 7.11 of the Pledge Agreement, hereby becomes a party to
the Pledge Agreement as a Pledgor thereunder with the same force and effect as if originally named
therein as a Pledgor and, without limiting the generality of the foregoing, hereby expressly
assumes all obligations and liabilities of a Pledgor thereunder and expressly grants to the US
Administrative Agent, for the ratable benefit of the Secured Creditors, a security interest in all
Collateral now owned or hereafter acquired by such Additional Pledgor to secure all of such
Additional Pledgor’s obligations and liabilities thereunder. The information set forth in
Annex 1-A hereto is hereby added to the information set forth in Schedules 1 through 4 to
the Pledge Agreement. The Additional Pledgor hereby represents and warrants that each of the

Annex I - 1

 

representations and warranties as they relate to such Pledgor or to the Loan Documents to which
such Pledgor is a party contained in Article 3 of the Pledge Agreement is true and correct on and
as the date hereof (after giving effect to this Assumption Agreement) as if made on and as of such
date, except to the extent any such representations and warranties are expressly limited to an
earlier date, in which case, on and as of such date, such representations and warranties shall
continue to be true and correct as of such specified earlier date.

     2. Governing Law. This Assumption Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas.

     IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

	 	 	 	 	 
	 	 	[ADDITIONAL PLEDGOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Annex I - 2

 

Annex 1-A

ADDITIONAL PLEDGOR INFORMATION

Annex I - 3

 

Annex II

SUPPLEMENT

     This SUPPLEMENT, dated as of [ ], 200[ ], made by [ ], a [ ] (the “Additional
Pledgor”), in favor of Wachovia Bank, National Association
as administrative agent (in such capacity, the “US Administrative Agent”) for the banks and
other financial institutions (the “Lenders”) from time to time parties to the Credit
Agreement (defined below) and, in the case of any Secured Hedging Agreement or any Secured Treasury
Management Agreement referred to in the Pledge Agreement (defined below), any Lender Affiliate (as
defined in the Credit Agreement). All capitalized terms not defined herein shall have the meaning
ascribed to them in such Credit Agreement.

W I T N E S S E T H:

     WHEREAS, Exterran Holdings, Inc., a Delaware corporation (the “US Borrower”) and
Universal Compression Canada, Limited Partnership, a Nova Scotia limited partnership (the
“Canadian Borrower” and together with the US Borrower, the “Borrowers”), the
Administrative Agents, the Lenders and the other Agents party thereto have entered into a Senior
Secured Credit Agreement dated August 20, 2007 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”);

     WHEREAS, in connection with the Credit Agreement, certain Affiliates (other than the
Additional Pledgor) of the Borrowers (each a “Pledgor”) have entered into the US Pledge
Agreement, dated as of August 20, 2007 (as amended, supplemented or otherwise modified from time to
time, the “Pledge Agreement”) in favor of the US Administrative Agent for the benefit of
the Secured Creditors;

     WHEREAS, the Credit Agreement requires the Additional Pledgor to become a party to the Pledge
Agreement; and

     WHEREAS, the Additional Pledgor has agreed to execute and deliver this Supplement in order to
become a party to the Pledge Agreement;

     NOW, THEREFORE, IT IS AGREED:

     1. Pledge Agreement. By executing and delivering this Supplement, the Additional
Pledgor, as provided in Section 7.11 of the Pledge Agreement, hereby pledges and grants a security
interest in (a) the Equity Interests described or referred to in Schedule 2-S and (b) (i)
the certificates or instruments, if any, representing such Equity Interests, (ii) all dividends
(cash, Equity Interests or otherwise), cash, instruments, rights to subscribe, purchase or sell and
all other rights and Property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such securities and interests (iii) all replacements,
additions to and substitutions for any of the Property referred to in this definition, including,
without limitation, claims against third parties, (iv) the proceeds, interest, profits and other
income of or on any of the Property referred to in this definition, (v) all security entitlements
in

Annex II - 1

 

respect of any of the foregoing, if any, (vi) all books and records relating to any of the Property
referred to in this definition and (vii) all proceeds of any of the foregoing (collectively, the
“Collateral”). Upon execution of this Supplement, such securities will constitute “Pledged
Securities” for purposes of the Pledge Agreement with the same force and effect as if originally
listed on Schedule 2 thereto. The information set forth in Schedule 2-S hereto is hereby
added to the information set forth in Schedule 2 to the Pledge Agreement. The Additional Pledgor
hereby represents and warrants that each of the representations and warranties as they relate to
such Pledgor or to the Loan Documents to which such Pledgor is a party contained in Article 3 of
the Pledge Agreement is true and correct on and as the date hereof (after giving effect to this
Supplement) as if made on and as of such date, except to the extent any such representations and
warranties are expressly limited to an earlier date, in which case, on and as of such date, such
representations and warranties shall continue to be true and correct as of such specified earlier
date.

     2. Governing Law. This Supplement shall be governed by, and construed in accordance
with, the laws of the State of Texas.

     IN WITNESS WHEREOF, the undersigned has caused this Supplement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	 	[ADDITIONAL PLEDGOR]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

Annex II - 2

 

Schedule 1

NOTICE ADDRESSES OF PLEDGORS

Exterran Holdings, Inc.

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

Exterran, Inc.

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

Exterran Energy Solutions, L.P.

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

Hanover Compression General Holdings LLC

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

Hanover HL, LLC

103 Foulk Road, Suite 200

Wilmington, Delaware 19803

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

Enterra Compression Investment Company

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

UCI MLP LP LLC

103 Foulk Road, Suite 205R

Wilmington, Delaware 19803

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

Schedule 1 - 1

 

UCO General Partner, LP

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

UCI GP LP LLC

103 Foulk Road, Suite 205R

Wilmington, Delaware 19803

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

UCO GP, LLC

4444 Brittmoore Road

Houston, Texas 77041

Attention: Chief Financial Officer

Telecopier No.: 713-466-6720

Schedule 1 - 2

 

Schedule 2

DESCRIPTION OF PLEDGED SECURITIES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Stock	 	No. of	 	Percentages of
	 	 	 	 	Certificate	 	Shares	 	Issued Stock
	Owner	 	Issuer	 	No.	 	Pledged	 	Pledged
	Exterran Holdings, Inc.

	 	Exterran, Inc.
	 	 	1	 	 	 	4910	 	 	 	100	%
	Exterran, Inc.

	 	EI Leasing LLC
	 	 	1	 	 	 	1	 	 	 	100	%
	Exterran, Inc.

	 	UCI MLP LP LLC
	 	 	1	 	 	 	1	 	 	 	100	%
	Exterran, Inc.

	 	UCI GP LP LLC
	 	 	1	 	 	 	1	 	 	 	100	%
	Exterran, Inc.

	 	UCO, GP, LLC
	 	 	1	 	 	 	1	 	 	 	100	%
	Exterran Energy Solutions, L.P.

	 	Hanover Venezuela, C.A
	 	 	N/A	 	 	 	N/A	 	 	 	65	%
	Exterran Energy Solutions, L.P.

	 	Hanover Compressor Holding Company NL B.V.
	 	 	N/A	 	 	 	N/A	 	 	 	65	%
	Exterran Energy Solutions, L.P.

	 	Hanover Argentina S.A.
	 	 	N/A	 	 	 	N/A	 	 	 	65	%
	Enterra Compression Investment Company

	 	Universal Compression International Holdings, S.L.U.
	 	 	N/A	 	 	 	N/A	 	 	 	65	%
	Hanover HL, LLC

	 	Exterran Energy Solutions, L.P.
	 	 	N/A	 	 	 	N/A	 	 	 	99	%
	Hanover Compression General Holdings LLC

	 	Exterran Energy Solutions, L.P.
	 	 	N/A	 	 	 	N/A	 	 	 	1	%
	UCI MLP LP LLC

	 	Exterran Partners, L.P.
	 	 	1	 	 	 	6,325,000	 	 	100% of LP Units owned by UCI MLP LP LLC

	UCO General Partner, LP

	 	Exterran Partners, L.P.
	 	 	N/A	 	 	 	N/A	 	 	100% of Subordinated Units owned by UCO General Partner, LP

Schedule 2 - 1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Stock	 	No. of	 	Percentages of
	 	 	 	 	Certificate	 	Shares	 	Issued Stock
	Owner	 	Issuer	 	No.	 	Pledged	 	Pledged
	UCI GP LP LLC

	 	UCO General Partner, LP
	 	 	1	 	 	99.999% limited partnership interest
	 	 	99.99	%
	UCO GP, LLC

	 	UCO General Partner, LP
	 	 	1	 	 	.001% general partnership interest
	 	 	.001	%

Schedule 2 - 2

 

Schedule 3

FILINGS AND OTHER ACTIONS

REQUIRED TO PERFECT SECURITY INTERESTS

	1.	 	Filing of UCC-1 Financing Statements with respect to the Collateral with the Secretary of
State of the State of Delaware and the State of Texas.
	 
	2.	 	Delivery to the US Administrative Agent of all Pledged Securities consisting of certificated
securities, in each case properly endorsed for transfer or in blank.

Schedule 3 - 1

 

Schedule 4

LOCATION OF JURISDICTION OF ORGANIZATION

AND CHIEF EXECUTIVE OFFICE

Legal name of Pledgor: Exterran Holdings, Inc.

Address: 4444 Brittmoore Road, Houston, Texas 77041

Jurisdiction of organization: Delaware

Organizational number: 4295474

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: Exterran, Inc.

Address: 4444 Brittmoore Road, Houston, Texas 77041

Jurisdiction of organization: Texas

Organizational number: 0012182200

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: Exterran Energy Solutions, L.P.

Address: 4444 Brittmoore Road, Houston, Texas 77041

Jurisdiction of organization: Delaware

Organizational number: 3326660

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: Hanover Compression General Holdings LLC

Address: 4444 Brittmoore Road, Houston, Texas 77041

Jurisdiction of organization: Delaware

Organizational number: 3326648

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: Hanover HL, LLC

Address: 103 Foulk Road, Suite 200, Wilmington, Delaware 19803

Jurisdiction of organization: Delaware

Organizational number: 3608657

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: Enterra Compression Investment Company

Address: 4444 Brittmoore Road, Houston, Texas 77041

Jurisdiction of organization: Delaware

Organizational number: 2570044

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: UCI MLP LP LLC

Address: 103 Foulk Road, Suite 205R, Wilmington, Delaware 19803

Jurisdiction of organization: Delaware

Organizational number: 4229737

Location of chief executive office or sole place of business: see address above

Schedule 4 - 1

 

Legal name of Pledgor: UCO General Partner, LP

Address: 4444 Brittmoore Road, Houston, TX 77041

Jurisdiction of organization: Delaware

Organizational number: 4174851

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: UCI GP LP LLC

Address: 103 Foulk Road, Suite 205R, Wilmington, Delaware 19803

Jurisdiction of organization: Delaware

Organizational number: 4229732

Location of chief executive office or sole place of business: see address above

Legal name of Pledgor: UCO GP, LLC

Address: 4444 Brittmoore Road, Houston, TX 77041

Jurisdiction of organization: Delaware

Organizational number: 4174849

Location of chief executive office or sole place of business: see address above

Schedule 4 - 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]