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EXHIBIT 10.25  

 
  AMENDMENT NUMBER 7
  TO THE MANAGEMENT AGREEMENT    
  

        THIS AMENDMENT NUMBER 7, dated as of May 31, 2002 (the "Amendment") to the Management Agreement, dated as of February 9, 2001 (as amended or
supplemented from time to time as permitted thereby, the "Management Agreement"), by and among Universal Compression, Inc. (the "Manager"), UCO Compression LLC ("UCO") and BRL Universal
Compression Funding I, L.P. (the "Issuer"). 

W I T N E S S E T H: 

        WHEREAS,
the Manager, UCO and the Issuer have previously entered into the Management Agreement and Amendments Numbers 1, 2, 3, 4, 5 and 6 thereto; 

        WHEREAS,
the parties desire to further amend the Management Agreement in order to modify certain provisions of the Management Agreement; 

        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 Management Agreement. 

        SECTION
2. Full Force and Effect. Other than as specifically modified hereby, the Management Agreement 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 Management Agreement. Effective on the date hereof, following the execution and delivery hereof, 

	(a)
	The
second sentence of Section 5.7 of the Management Agreement 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) July 31, 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 annnually, in the aggregate; and provided further
that, at all times, the Liability Insurance shall not have deductibles in excess of $250,000 per occurrence. 

 

	(b)
	Section 8.1(a)
of the Management Agreement is hereby amended in its entirety to read as follows: 

        On
each Determination Date, the Manager may (in its sole discretion) advance funds (each, a "Manager Advance") and remit to the Head Lessee Collection Account, in such manner as will
ensure immediately available funds will be on account thereof by 11:00 a.m. New York time on the second Business Day prior to the next succeeding Payment Date, an amount equal to all or any
portion of rental payments due on User Leases with respect to the Owner Compressors during the preceding Collection Period for which the related Users have not remitted such payment on or prior to
such Determination Date; provided, however, that the aggregate amount of all such Manager Advances outstanding at any point in time may not exceed an
amount equal to the product of (x) two percent (2%) and (y) the then Aggregate Appraisal Value. Nothwithstanding the foregoing, the Manager may make a Manager Advance only to the extent
necessary to pay all items in Section 302(c) of the Indenture with a priority in payment prior to Section 302(c)(17) of the Indenture. The Manager will be reimbursed for Manager Advances
in accordance with the terms of Section 7.2(b) of the Head Lessee Security Agreement. Notwithstanding the foregoing, the Manager will not be obligated to make a Manager Advance with respect to
(i) any defaulted User Lease, or (ii) any User Lease if the Manager, in its reasonable good faith judgment, believes that such Manager Advance would not be recoverable from corresponding
remittance from the User on the related User Lease. 

	(c)
	Section 9.11
of the Management Agreement is hereby amended to read in its entirety as follows: 

        New Master Lease Agreement with Users. With respect to each Owner Compressor, the Manager shall, within the timeframe set forth below,
cause each related User to execute a revised master lease agreement, substantially in the form of Exhibit F hereto. The Manager shall be deemed to be in compliance with this Section if Users
representing one hundred percent (100%) of the Aggregate Appraised Value have executed such revised master lease agreement by the earlier to occur of (a) the date of issuance of the Issuer's
"Series 2002-1 Notes" and (b) July 31, 2002 (or if such day is not a Business Day, the next succeeding Business Day). 

	(d)
	Section 9.12
of the Management Agreement is hereby amended in its entirety to read as follows: 

        Appraisals. By the earlier to occur of (a) the date of issuance of the Issuer's "Series 2002-1 Notes" and
(b) July 31, 2002 (or if such day is not a Business Day, the next succeeding Business Day) the Manager shall (at its own expense) furnish (or cause to be furnished) to the Owner and to
each Entitled Party two (2) Appraisals setting forth the Appraised Value of each Lease Pool as of the date of such Appraisal. Upon delivery of such Appraisals, the Appraised Value of each
Compressor shall be adjusted in accordance with the provisions set forth in the definition of the term "Appraised Value." 

2

 

        Thereafter,
on the anniversary (or if such day is not a Business Day, the next succeeding Business Day) of the earlier to occur of (a) the date of issuance of the Issuer's
"Series 2002-1 Notes" and (b) July 31, 2002 (or if such day is not a Business Day, the next succeeding Business Day), the Manager shall (at its own expense) furnish
(or cause to be furnished) to the Owner and to each Entitled Party three (3) Appraisals setting forth the Appraised Value of each Lease Pool as of the date of such Appraisal. 

        SECTION
4. Representations and Warranties. Each of the Manager, UCO and the Issuer hereby confirm that each of the covenants,
representations and warranties set forth in Articles 9 and 18, as applicable, of the Management Agreement are true and correct as of the date first written above with the same effect as though each
had been made as of such date, except to the extent that any of such covenants, representations and warranties expressly relate to earlier dates. 

        SECTION
5. 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 Management Agreement, and (ii) each reference in the Management Agreement to
"this Agreement" or "hereof", "hereunder" or words of like import, and each reference in any other document to the Management Agreement shall mean and be a reference to the Management Agreement as
amended or modified hereby. 

        SECTION
6. 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
7. 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.

        [Signatures
follow.] 

3

 

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

	 	 	UNIVERSAL COMPRESSION, INC.
	

 	
 	

By:	
 	

/s/  RICHARD W. FITZGERALD      

	 	 	Name:	 	Richard W. FitzGerald

	 	 	Title:	 	Sr. Vice President and Chief Financial Officer

	

 	
 	

UCO COMPRESSION LLC
	

 	
 	

By:	
 	

/s/  RICHARD W. FITZGERALD      

	 	 	Name:	 	Richard W. FitzGerald

	 	 	Title:	 	Sr. Vice President and Chief Financial Officer

	

 	
 	

BRL UNIVERSAL COMPRESSION

        FUNDING I, L.P.
	

 	
 	

By:	
 	

BRL Universal Compression Management, Inc., its General Partner
	

 	
 	

 	
 	

By:	
 	

/s/  GREGORY C. GREENE      

	 	 	 	 	Name:	 	Gregory C. Greene

	 	 	 	 	Title:	 	President

The
undersigned hereby consents to the

amendment to the Management Agreement: 

VARIABLE
FUNDING CAPITAL

CORPORATION, as Requisite Global

Majority 

	By: First Union Securities, Inc., acting

under the trade name Wachovia Securities,

as attorney-in-fact
	

By:	
 	

/s/  DOUGLAS R. WILSON, SR.      

	Name:	 	Douglas R. Wilson, Sr.

	Title:	 	Vice President

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Acknowledged
and Agreed: 

WELLS
FARGO BANK MINNESOTA,

NATIONAL ASSOCIATION,

as Indenture Trustee 

	By:	 	/s/  EDNA BARBER      

	Name:	 	Edna Barber

	Title:	 	Assistant Vice President

5

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Exhibit 10.30  

  
 

    STOCK OPTION AGREEMENT    
  

        THIS STOCK OPTION AGREEMENT (this "Agreement"), executed to be effective the 16th day of August, 2001 (the "Grant Date"), by and between UNIVERSAL
COMPRESSION HOLDINGS, INC., a Delaware corporation ("Holdings"), and «FirstName» «LastName» (the
"Director"), who is a director of Holdings. All capitalized terms not otherwise defined in this Agreement shall have the respective meaning of such terms as defined in the Universal Compression
Holdings, Inc. Incentive Stock Option Plan, as amended (the "Plan"). 

        WHEREAS,
Holdings has agreed to grant to the Director an option to purchase Holdings common stock, $.01 par value per share (the "Common Stock"), pursuant to the terms and conditions of
this Agreement in consideration for services to Holdings. 

        NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties
agree as follows: 

	1.
	GRANT
OF OPTION. Holdings grants to the Director an option (the "Option") to purchase Ten Thousand (10,000) shares of Common Stock at an Exercise Price per
share equal to $            . The Option shall expire on the tenth anniversary of the Grant Date, unless sooner terminated under the provisions hereof. This Option is
granted under the Plan, a copy of which is attached hereto as Exhibit "A" and is incorporated herein by reference, and is not intended to constitute an Incentive Stock Option under Section 422
of the Internal Revenue Code of 1986, as amended, but shall be a Non-qualified Stock Option.

	2.
	OPTION
TERMS AND CONDITIONS.

	(a)
	Exercise
of Option. The Option shall become 100% exercisable on August 16, 2002, the first anniversary of the Grant Date; provided, however, the
Option shall become immediately exercisable
upon (i) the acquisition by any Person, other than an Affiliate of Castle Harlan Partners III, L.P. of fifty-one percent (51%) or more of the Common Stock of Holdings, (ii) a
sale of all or substantially all of the assets of Holdings or (iii) the termination of service, for any reason whatsoever, of the Director.

	(b)
	Termination
of Service. Upon termination of service of the Director as a director with Holdings for any reason whatsoever, the Option shall terminate on
the earlier of (i) the date of its expiration under Section 1 or (ii) 90 days from the date on which the Director's service as a director terminated. 

	3.
	NON-TRANSFERABILITY.
No Option granted hereby and no right arising thereunder shall be transferable other than by will or by the laws of
descent and distribution. During the lifetime of the Director, the Option shall be exercisable only by the Director. If the Option is exercisable at the date of the Director's death and is transferred
by will or by the laws of descent and distribution, the Option shall be exercisable in accordance with the terms of such Option by the executor or administrator, as the case may be, of the Director's
estate for a period of ninety (90) days after the date of the Director's death and shall then terminate.

	4.
	MODE
OF EXERCISE. The Option shall be exercised by giving to Holdings written notice stating (a) the number of shares with respect to which the
Option is being exercised, (b) the aggregate Exercise Price for such shares, and (c) the method of payment. At the option of the Director, such aggregate Exercise Price may be paid:
(i) in cash; (ii) with the consent of the Board, which consent may be given or withheld in its sole discretion, by delivery of a promissory note to Holdings payable over a three
(3) year period and bearing interest at the prime rate; (iii) with the consent 

1

 

of
the Administrator of the Plan, which consent may be given or withheld in its sole discretion, by delivery of shares of Common Stock owned by the Director having a Fair Market Value (as determined
by Section 5 below) equal in amount to the aggregate Exercise Price of the Option being exercised; (iv) by any combination of (i), (ii) and (iii); or (v) with the consent
of the Administrator of the Plan, which consent may be given or withheld in its sole discretion, by cancellation of a portion of the Option as determined by the Administrator of the Plan. 

	5.
	FAIR
MARKET VALUE OF COMMON STOCK. The "Fair Market Value" of the Common Stock on any day shall be determined by the Board as follows: (i) if the
Common Stock is listed on a national securities exchange or quoted through the NASDAQ National Market System, the Fair Market Value on any day shall be the average of the high and low reported
Consolidated Trading sales prices, or if no such sale is made on such day, the average of the closing bid and asked prices reported on the Consolidated Trading listing for such day; (ii) if the
Common Stock is quoted on the NASDAQ inter-dealer quotation system, the Fair Market Value on any day shall be the average of the representative bid and asked prices at the close of business for such
day; (iii) if the Common Stock is not listed on a national stock exchange or quoted on NASDAQ, the Fair Market Value on any day shall be the average of the high bid and low asked prices
reported by the National Quotation Bureau, Inc. for such day; or (iv) if none of clauses (i)—(iii) are applicable, the Fair Market Value as may be determined by the
Board or the Administrator of the Plan, there being no obligation to make such determination.

	6.
	OPTION
SUBJECT TO SECURITIES AND OTHER REGULATIONS. The Option granted hereunder and the obligation of Holdings to sell and deliver shares under such
Option shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. Holdings, in its discretion,
may postpone the issuance or delivery of shares upon any exercise of the Option until completion of any stock exchange listing, or other qualification of such shares under any state or federal law,
rule or regulation as Holdings may consider appropriate, and may require the Director, his or her beneficiary or his or her legal representative to make such representations and furnish such
information as it may consider appropriate in connection with the issuance or delivery of the shares in compliance with applicable laws, rules and regulations. 

        Upon
demand by the Board, the Director (or any person acting under Section 3 above) shall deliver to the Board at the time of exercise of the Option a written representation that
the shares to be acquired upon the exercise of the Option are being acquired for his or her own account and not with a view to, or for resale in connection with, any distribution in violation of
federal or state securities laws. Upon such demand, delivery of such representation prior to the delivery of any shares issued upon exercise of the Option shall be a condition precedent to the right
of the Director or such other person to purchase any shares. 

	7.
	NO
RIGHTS AS STOCKHOLDER PRIOR TO EXERCISE OF OPTION. The Director shall not have any rights as a stockholder with respect to any shares subject to the
Option prior to the date on which the Director is recorded as the holder of such shares on the records of Holdings.

	8.
	TAXES.
Holdings may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all Federal, state, local and
other taxes required by law to be withheld with respect to the Option including, but not limited to: (i) reducing the number of shares of Common Stock otherwise deliverable, based upon their
Fair Market Value on the date of exercise, to permit deduction of the amount of any such withholding taxes from the amount otherwise payable under this Agreement; (ii) deducting the amount of
any such withholding taxes from any other amount then or thereafter payable to the Director; or (iii) requiring the Director, his or her beneficiary or his or her legal representative to pay to
Holdings the amount required to 

2

 

be
withheld or to execute such documents as Holdings deems necessary or desirable to enable it to satisfy its withholding obligations as a condition of releasing the Common Stock. 

	9.
	GOVERNING
LAW. This Agreement shall be governed and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be
performed entirely within such state.

	10.
	COUNTERPARTS.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one
and the same instrument, and it shall
not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.

	11.
	NOTICES.
Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally, telecopied with
confirmed receipt, sent by certified, registered, or express mail, postage prepaid, or sent by a national next-day delivery service to the parties at the following addresses or at such
other addresses as shall be specified by the parties by like notice, and shall be deemed given when so delivered personally or telecopied, or if mailed, two (2) days after the date of mailing,
or, if by national next-day delivery service, on the day after delivery to such service as follows: 

	(i)	 	if to Holdings, at:
	

 	
 	

Universal Compression Holdings, Inc.

4440 Brittmoore Road

Houston, Texas 77041-8004

Attention: Richard FitzGerald,

Senior Vice President and

Chief Financial Officer

Telecopier No.: (713) 466-6720
	

 	
 	

with a copy to:
	

 	
 	

Universal Compression, Inc.

4440 Brittmoore Road

Houston, Texas 77041-8004

Attention: Mark L. Carlton,

Senior Vice President and General Counsel

Telecopier No.: (713) 466-6720
	

(ii)	
 	

if to Director, to him or her at:
	

 	
 	

Universal Compression, Inc.

4440 Brittmoore Road

Houston, Texas 77041-8004

	12.
	HEADINGS.
The headings in this Agreement are for convenience of reference only and shall not in any manner define or limit the scope or intent of any
provisions of this Agreement.

	13.
	SEVERABILITY.
If any term, provision, covenant or restriction of this Agreement, or any part thereof, is held by a court of competent jurisdiction or any
foreign federal, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy for any
reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

[remainder
of page intentionally left blank] 

3

 

        IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this Agreement effective as of the Grant Date above mentioned. 

	 	 	DIRECTOR
	

 	
 	

«FirstName» «LastName»
	

 	
 	

UNIVERSAL COMPRESSION HOLDINGS, INC.
	

 	
 	

 Stephen A. Snider

President and Chief Executive Officer

4

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STOCK OPTION AGREEMENT

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