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Exhibit 10.2    
  

 
 

AMENDMENT NUMBER 6
  TO THE MASTER EQUIPMENT LEASE AGREEMENT    
  

        THIS AMENDMENT NUMBER 6, dated as of September 16, 2002 (the "Amendment") to the Master Equipment Lease Agreement, dated as of February 9, 2001 (as
amended or supplemented from time to time as permitted thereby, the "Head Lease"), by and between BRL Universal Compression Funding I, L.P. (the "Head Lessor") and UCO Compression LLC (the "Head
Lessee"). 

W I T N E S S E T H:

        WHEREAS,
the Head Lessor and the Head Lessee have previously entered into the Head Lease, Amendment Number 1 thereto, dated as of February 8, 2002, Amendment Number 2 thereto,
dated as of March 29, 2002, Amendment Number 3 thereto, dated as of April 1, 2002, Amendment Number 4 thereto, dated as of May 31, 2002 and Amendment Number 5 thereto, dated as of
July 31, 2002; 

        WHEREAS,
the parties desire to further amend the Head Lease in order to modify certain provisions of the Head Lease; 

        NOW
THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto agree as follows: 

        SECTION
1.    Defined Terms.    Capitalized terms used in this Amendment and not otherwise defined herein shall have
the meanings assigned in the Head Lease. 

        SECTION
2.    Full Force and Effect.    Other than as specifically modified hereby, the Head Lease shall remain in
full force and effect in accordance with the terms and provisions thereof and is hereby ratified and confirmed by the parties hereto. 

        SECTION
3.    Amendment to the Head Lease.    Effective on the date hereof, following the execution and delivery
hereof, 

        (a)  The
definition of "Annual Appraisal Date" in Section 1 of the Head Lease is hereby amended to read in its entirety as follows: 

        Annual
Appraisal Date: Initially, the earlier to occur of (a) the date of issuance of the Issuer's "Series 2002-1 Notes" and
(b) October 18, 2002 (or if such day is not a Business Day, the next succeeding Business Day), and, thereafter, each anniversary (or if such day is not a Business Day, the next
succeeding Business Day) of the occurrence of such earlier date. 

        (b)  The
second sentence of subsection (a) of Section 14 of the Head Lease is hereby amended to read in its entirety as follows: 

        Property
Insurance shall not have deductibles in excess of $250,000 per occurrence; provided that, on and after the earlier
to occur of (a) the date of issuance of the Issuer's "Series 2002-1 Notes" and (b) October 18, 2002 (or if such day is not a Business Day, the next succeeding
Business Day), the Property Insurance shall not have deductibles in excess of (x) $250,000 per occurrence and (y) $2,000,000 annually, in the aggregate; and  provided further that, at all times,
 the Liability Insurance shall not have deductibles in excess of $250,000 per occurrence. 

        SECTION
4.    Effectiveness of Amendment.

        (a)  This
Amendment shall become effective as of the date first written above. 

        (b)  This
Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 

        (c)  On
and after the execution and delivery hereof, (i) this Amendment shall be a part of the Head Lease, and (ii) each reference in the Head Lease to "this
Head Lease" or "hereof", "hereunder" 

 

or words of like import, and each reference in any other document to the Head Lease shall mean and be a reference to the Head Lease as amended or modified hereby. 

        SECTION
5.    Execution in Counterparts.    This Amendment may be executed by the parties hereto in separate
counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. 

        SECTION
6.    Governing Law.    THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES; PROVIDED THAT SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[Signature
page follows.] 

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        IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment on the date first above written. 

	

 	
 	

BRL UNIVERSAL COMPRESSION FUNDING I, L.P., as Head Lessor
	

 	
 	

By:	
 	

BRL Universal Compression Management, Inc.
	

 	
 	

 	
 	

By:	

/s/  GREGORY C. GREENE      
 Name: Gregory C. Greene

Title: President
	

 	
 	

UCO COMPRESSION LLC, as Head Lessee
	

 	
 	

By:	
 	

/s/  RICHARD W. FITZGERALD      
 Name: Richard W. FitzGerald

Title: Senior Vice President

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Exhibit 10.2

AMENDMENT NUMBER 6 TO THE MASTER EQUIPMENT LEASE AGREEMENTQuickLinks
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Exhibit 10.3    
  

 
 

SECOND AMENDMENT AND SUPPLEMENT
  TO SENIOR SECURED REVOLVING CREDIT AGREEMENT    
  

        THIS SECOND AMENDMENT AND SUPPLEMENT TO SENIOR SECURED REVOLVING CREDIT AGREEMENT (this "Second Amendment") is
made and entered into as of the 30th day of September 2002 (the "Effective Date"), among UNIVERSAL COMPRESSION, INC., a Texas corporation
("Borrower"); WACHOVIA BANK, NATIONAL ASSOCIATION (formerly known as First Union National Bank,
"Wachovia"), as administrative agent (in such capacity, the "Administrative Agent") for each of the
lenders (the "Lenders") that is a signatory or which becomes a signatory to the hereinafter defined Credit Agreement; and the Lenders. 

R E C I T A L S:  

        A.    On
February 9, 2001, the Borrower, the Lenders and the Administrative Agent entered into a certain Senior Secured Revolving Credit Agreement (as amended, modified
or restated, the "Credit Agreement") whereby, upon the terms and conditions therein stated, the Lenders agreed to make certain Loans (as such term is
defined in the Credit Agreement) and extend certain credit to the Borrower. 

        B.    The
Borrower, the Lenders and the Administrative Agent mutually desire to amend certain aspects of the Credit Agreement to, among other things, amend certain definitions
and Section 9.13(b) of the Credit Agreement to adjust certain financial covenants. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Borrower, the Lenders and the Administrative Agent hereby agree that the Credit Agreement
shall be amended as follows: 

        1.    Certain Definitions.    

        (a)    Terms Defined Above.    As used in this Second Amendment, the terms "Administrative Agent", "Borrower", "Credit
Agreement", "Effective Date", "Lender", "Second Amendment" and "Wachovia" shall have the meanings indicated above. 

        (b)    Terms Defined in Credit Agreement.    Unless otherwise defined herein, all terms beginning with a capital
letter which are defined in the Credit Agreement shall have the same meanings herein as therein unless the context hereof otherwise requires. 

        2.    Amendments to Credit Agreement.    

        (a)    Defined Terms.    The following terms defined in Section 1.02 of the Credit Agreement are hereby amended
as follows: 

          (i)  The
term "Agreement" is hereby amended to mean the Credit Agreement, as amended and supplemented by this Second
Amendment and as the same may from time to time be further amended or supplemented. 

        (ii)  The
term "Applicable Margin" is hereby deleted in its entirety and the following is inserted in substitution thereof: 

        "Applicable Margin" shall mean: 

        (a)  Intentionally
Omitted. 

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        (b)  From
and including September 1, 2002, and at all times thereafter, the applicable per annum percentage is determined as follows: 

          (i)  If
the Borrower's credit rating on its senior secured Debt issued in conjunction with the HY-SL Facility is BB or better from S&P or Ba2 or better from
Moody's, then the Applicable Margin shall be the applicable per annum percentage set forth at the appropriate intersection in the table shown below based on the Total Leverage Ratio as in effect from
time to time: 

	 
	 	Applicable Margin
	 	 
	 
	Total Leverage Ratio
 
	 	LIBOR Loans
	 	Base Rate Loans
	 	Commitment Fees
	 
	Greater than or equal to 4.75 to 1.0	 	2.25	%	1.25	%	.50	%
	Greater than or equal to 4.25 to 1.0, but less than 4.75 to 1.0	 	2.00	%	1.00	%	.50	%
	Greater than or equal to 3.75 to 1.0, but less than 4.25 to 1.0	 	1.75	%	.75	%	.375	%
	Greater than or equal to 3.25 to 1.0, but less than 3.75 to 1.0	 	1.50	%	.50	%	.375	%
	Less than 3.25 to 1.0	 	1.25	%	.25	%	.300	%

        (ii)  If
the Borrower's credit rating on its senior secured Debt issued in conjunction with the HY-SL Facility falls below BB from S&P or Ba2 from Moody's, then
the Applicable Margin shall be the applicable per annum percentage rate set forth at the appropriate intersection in the table shown below based on the Total Leverage Ratio as in effect from time to
time: 

	 
	 	Applicable Margin
	 	 
	 
	Total Leverage Ratio
 
	 	LIBOR Loans
	 	Base Rate Loans
	 	Commitment Fees
	 
	Greater than or equal to 4.75 to 1.0	 	2.50	%	1.50	%	.50	%
	Greater than or equal to 4.25 to 1.0, but less than 4.75 to 1.0	 	2.25	%	1.25	%	.50	%
	Greater than or equal to 3.75 to 1.0, but less than 4.25 to 1.0	 	2.00	%	1.00	%	.50	%
	Greater than or equal to 3.25 to 1.0, but less than 3.75 to 1.0	 	1.75	%	.75	%	.375	%
	Less than 3.25 to 1.0	 	1.50	%	.50	%	.375	%

        (c)  For
purposes of determining the Applicable Margin, the first test period for EBITDAR will be calculated as of September 30, 2002. 

        Each
change in the Applicable Margin resulting from a change in the Total Leverage Ratio (which shall be calculated quarterly) shall take effect as of the first day of the fiscal quarter
for which the Total Leverage Ratio is calculated." 

        (iii)  The
term "Total Debt" is hereby deleted in its entirety and the following is inserted in substitution thereof: 

        "Total Debt" shall mean, at any time (without duplication), the sum of (i) 100% of Debt reflected on the balance sheet of the
Borrower in accordance with GAAP, plus (ii) 100% of any amount funded (Debt and equity) under Operating Equipment Lease Facilities including the HY-SL Facility,  plus (iii) 100% of any amount
funded (Debt and equity) under the ABS Facility." 

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        (b)    Additional Defined Terms.    Section 1.02 of the Credit Agreement is hereby further amended and
supplemented by adding the following new definition, which reads in its entirety as follows: 

        "Second Amendment' shall mean that certain Second Amendment and Supplement to Senior Secured Revolving Credit Agreement dated as of
September 30, 2002, among the Borrower, the Lenders and the Administrative Agent." 

        (c)    Certain Financial Covenants.    Section 9.13(b) of the Credit Agreement is hereby amended in its
entirety to read as follows: 

        "(b)    Total Debt to EBITDAR.    The Borrower will not permit its Total Leverage Ratio as of the end of any Testing
Period to be greater than 5.0 to 1.00." 

        3.    Conditions Precedent.    In addition to all other applicable conditions precedent contained in the Credit
Agreement, the obligation of the Lenders and the Administrative Agent to enter into this Second Amendment shall be conditioned upon the following conditions precedent: 

        (a)  The
Administrative Agent shall have received a copy of this Second Amendment, duly completed and executed by the Borrower; and 

        (b)  The
Administrative Agent shall have received such other information, documents or instruments as it or its counsel may reasonably request. 

        4.    Default.    Any default under this Second Amendment shall constitute a default under the Credit Agreement. 

        5.    Representations and Warranties.    The Borrower represents and warrants to the Lenders and the Administrative
Agent that: 

        (a)  there
exists no Default or Event of Default, or any condition or act which constitutes, or with notice or lapse of time or both would constitute, an Event of Default
under the Credit Agreement, as hereby amended and supplemented; and 

        (b)  the
Borrower has performed and complied with all covenants, agreements and conditions contained in the Credit Agreement, as hereby amended and supplemented, required to
be performed or complied with by it; and 

        (c)  the
representations and warranties of the Borrower contained in the Credit Agreement, as hereby amended and supplemented, were true and correct when made, and are true
and correct in all material respects at and as of the time of delivery of this Second Amendment. 

        6.    Extent of Amendments.    Except as expressly herein set forth, all of the terms, conditions, defined terms,
covenants, representations, warranties and all other provisions of the Credit Agreement are herein ratified and confirmed and shall remain in full force and effect. 

        7.    Counterparts.    This Second Amendment may be executed in two or more counterparts, and it shall not be
necessary that the signatures of all parties hereto be contained on any one counterpart hereof; each counterpart shall be deemed an original, but all of which together shall constitute one and same
instrument. 

        8.    References.    On and after the Effective Date hereof, the terms "Agreement", "hereof", "herein", "hereunder",
and terms of like import when used in the Credit Agreement shall, except where the context otherwise requires, refer to the Credit Agreement, as amended and supplemented by this Second Amendment. 

        THIS SECOND AMENDMENT, THE CREDIT AGREEMENT, AS AMENDED HEREBY, THE NOTES AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT  

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 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.  

        This Second Amendment shall benefit and bind the parties hereto, as well as their respective assigns, successors, heirs and legal representatives. 

[SIGNATURES
ON THE FOLLOWING PAGE] 

4

 

        EXECUTED
as of the date first above written. 

	 	 	BORROWER:
	

 	
 	

UNIVERSAL COMPRESSION, INC.
	

 	
 	

By:	
 	

/s/  RICHARD W. FITZGERALD      
 Name: Richard W. FitzGerald

Title: Senior Vice President
	

 	
 	

LENDERS AND AGENTS:
	

 	
 	

WACHOVIA BANK, NATIONAL ASSOCIATION,

Individually and as Administrative Agent
	

 	
 	

By:	
 	

/s/  DAVID E. HUMPHREYS      
 Name: David E. Humphreys

Title: Vice President
	

 	
 	

BANK ONE, NA (Main Office Chicago),

Individually and as Syndication Agent
	

 	
 	

By:	
 	

/s/  DIANNE L. RUSSELL      
Name: Dianne L. Russell
Title: Director

	

 	
 	

NATIONAL WESTMINSTER BANK PLC
	

 	
 	

By:	
 	

National Westminster Bank PLC,

New York Branch
	

 	
 	

By:	
 	

 
	 	 	 	 	
Name:
Title:

	

 	
 	

By:	
 	

National Westminster Bank PLC,

Nassau Branch
	

 	
 	

By:	
 	

 
	 	 	 	 	
Name:
Title:

5

 

	

 	
 	

THE BANK OF NOVA SCOTIA
	

 	
 	

By:	
 	

/s/  N. BELL      
Name: N. Bell
Title: Senior Manager

	

 	
 	

DUETSCHE BANK TRUST COMPANY AMERICAS
	

 	
 	

By:	
 	

/s/  CALLI S. HAYES      
Name: Calli S. Hayes
Title: Managing Director

	

 	
 	

UNION BANK OF CALIFORNIA, N.A.,

Individually and as Documentation Agent
	

 	
 	

By:	
 	

/s/  SEAN MURPHY      
Name: Sean Murphy
Title: Assistant Vice President

6

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Exhibit 10.3

SECOND AMENDMENT AND SUPPLEMENT TO SENIOR SECURED REVOLVING CREDIT AGREEMENT

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