Document:

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EXHIBIT 10.4

UNIVERSAL COMPRESSION HOLDINGS, INC.

INCENTIVE STOCK OPTION PLAN

FORM OF

AMENDMENT TO INCENTIVE AND

NON-QUALIFIED STOCK OPTION AWARD AGREEMENTS

     THIS AMENDMENT TO INCENTIVE AND NON-QUALIFIED STOCK OPTION AWARD AGREEMENTS (the “Amendment”)
is entered into and effective as of ___, 2007, by and between Universal Compression
Holdings, Inc. (“Holdings”) and Ernie L. Danner (“Employee”).

     WHEREAS, Holdings has previously granted to Employee incentive stock options and non-qualified
stock options to purchase shares of common stock of Holdings under the Universal Compression
Holdings, Inc. Incentive Stock Option Plan, as amended, pursuant to the Incentive Stock Option
Agreements and Non-Qualified Stock Option Agreements listed on Attachment A to this Amendment
(collectively, the “Agreements”); and

     WHEREAS, Employee is currently an employee of Holdings and is a member of the Board of
Directors of Holdings; and

     WHEREAS, in connection with the consummation of the transactions contemplated by that certain
Agreement and Plan of Merger by and among Holdings, Hanover Compressor Company, Exterran Holdings,
Inc. (formerly Iliad Holdings, Inc.) (“Exterran”), Hector Sub, Inc. and Ulysses Sub, Inc., dated as
of February 5, 2007, as amended (the “Merger”), Employee’s employment with, and service as a
director of, Universal will be terminated and Employee will commence service as a member of the
Board of Directors of Exterran (the “Exterran Board”); and

     WHEREAS, Holdings and Employee desire to amend the Agreements to extend the option exercise
period thereunder through Employee’s period of service as a member of the Exterran Board;

     NOW, THEREFORE, effective as of the date hereof, the parties agree to amend and restate
Sections 2(b)(ii) and (iii) of each of the Agreements to read in their entirety as follows:

 

 

     “(ii) Termination of Employment Without Cause or Voluntary Resignation.
In the event Universal terminates Employee’s employment without Cause (as defined
in the Plan), or Employee voluntarily resigns his employment, the Option shall
terminate as of the date of Employee’s termination of employment, except for the
portion of the Option that is exercisable as of the date of termination of
employment, which shall terminate upon the earlier of: (1) the date that is the
tenth anniversary of the Grant Date or (2) the date that is 90 days following the
date Employee ceases for any reason to be a member of the Exterran Board.

     (iii) Termination of Employment for Cause. In the event the Employee’s
employment with Universal shall terminate for Cause (as defined in the Plan), the
Option, whether or not exercisable as of the date of termination of employment,
shall terminate in its entirety on the date of termination.”

     The Agreements shall remain in full force and effect and, as amended by this Amendment, are
hereby ratified and affirmed in all respects.

	 	 	 	 	 
	 	UNIVERSAL COMPRESSION HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	EMPLOYEE

 

Ernie L. Danner

 	 
	 	 	 
	 	 	 
	 	 	 
	 

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ATTACHMENT A

TO

AMENDMENT TO INCENTIVE AND

NON-QUALIFIED STOCK OPTION AWARD AGREEMENTS

Schedule of Outstanding Incentive Stock Options and Non-Qualified Stock Options

Granted to Ernie L. Danner Pursuant to Incentive Stock Option Agreements

and Non-Qualified Stock Option Agreements

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Outstanding Number of
	Grant Date	 	Expiration Date	 	 	 	Vested and Unvested
	of Options	 	Of Options*	 	Option Type	 	Shares under Options
	12/11/2000
	 	12/11/2010	 	Non-Qualified	 	50,523
	04/20/2001
	 	04/20/2011	 	Non-Qualified	 	17,024
	02/19/2002
	 	02/19/2012	 	Non-Qualified	 	20,306
	04/30/2004
	 	04/30/2014	 	Non-Qualified	 	21,675
	03/09/2005
	 	03/09/2015	 	Non-Qualified	 	19,379
	03/09/2005
	 	03/09/2015	 	Incentive	 	2,621
	03/03/2006
	 	03/03/2016	 	Non-Qualified	 	22,696
	03/03/2006
	 	03/03/2016	 	Incentive	 	2,304

 

			
	 	 	*Tenth anniversary of Grant Date

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EXHIBIT 10.5

Universal Compression Partners, L.P.

Long-Term Incentive Plan

Form of

Amendment to Grant of Options

     THIS AMENDMENT TO GRANT OF OPTIONS (the “Amendment”) is entered into and effective as of
___, 2007, by and between UCO GP, LLC, on behalf of UCO General Partner, LP (the
“Company”), and ___(the “Grantee”).

W I T N E S S E T H:

     WHEREAS, the Company granted to Grantee Options to purchase all or any part of
___common units representing limited partner interests in Universal Compression
Partners, L.P. on the terms and conditions set forth in an Award Agreement, with a grant date of
___(“Agreement”), a copy of which is attached hereto, and subject to the terms and
conditions of the Universal Compression Partners, L.P. Long-Term Incentive Plan (the “Plan”), which
is incorporated herein by reference as a part of the Agreement; and

     WHEREAS, pursuant to Section 11 of the Agreement, the Company and the Grantee desire to amend
the Agreement to make certain changes with regard to the termination provisions thereof;

     NOW, THEREFORE, effective as of the date hereof, the parties agree to amend the Agreement as
follows:

     1. Paragraphs 3(c) and 3(d) of the Agreement are renumbered as paragraphs 3(d) and 3(e) and
the Agreement is amended to add the following new paragraph 3(c) thereto:

     “(c) Termination Without Cause. If your employment with the Company is
terminated without Cause (as defined below) prior to the vesting date, your Options
shall continue to vest following your termination date and, upon the vesting date of
January 1, 2009, shall be exercisable in accordance with the terms of this Section 3
of the Agreement, but in no event shall your options be exercisable after December
31, 2009. If your employment with the Company is terminated by the Company without
Cause on or after the vesting date, you or your guardian or legal representative (or
your estate or the person who acquires the Options by will or the laws of descent
and distribution or otherwise by reason of your death if you die during such period)
may exercise your Options, subject to the further provisions of this Agreement, at
any time during an Exercise Month that is within the period following such
termination until December 31, 2009, but

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only as to the vested number of Units, if any, that you were entitled to
purchase hereunder as of the date your employment so terminates.

     For purposes of this paragraph 3(c), ‘Cause’ means (i) your commission of an
act of fraud, embezzlement or willful breach of a fiduciary duty to the Company or
an Affiliate (including the unauthorized disclosure of or proprietary material
information of the Company or an Affiliate), (ii) your conviction (or a plea of nolo
contendere in lieu thereof) of a felony or a crime involving fraud, dishonesty or
moral turpitude, (iii) your willful failure to follow the written directions of the
Chief Executive Officer of the Company or an Affiliate, management of the Company or
an Affiliate, or the board of the Company’s general partner, in the case of
executive officers of the Company’s general partner, when such directions are
consistent with your customary duties and responsibilities and where your refusal
has continued for more than 10 days following written notice; (iv) your willful
misconduct as an employee of the Company or an Affiliate which includes your failure
to adhere to the Code of Business Conduct and Ethics of the Company’s general
partner; (v) your willful failure to render services to the Company or an Affiliate
in accordance with your employment arrangement, which failure amounts to a material
neglect of your duties to the Company or an Affiliate, or (vi) your substantial
dependence, as determined by the Committee, on any drug, immediate precursor or
other substance listed on Schedule IV of the Federal Comprehensive Drug Abuse
Prevention and Control Act of 1970, as amended, as determined in the sole discretion
of the Committee.”

     2. Paragraph 3(d) of the Agreement (formerly paragraph 3(c)) is amended to read as follows:

     “(d) Other Terminations. If your employment with the Company is
terminated for any reason other than as provided in paragraphs 3(a), (b) or (c)
above, to the extent the Options are vested on the date of your termination, subject
to the further provisions of this Agreement, you or your guardian or legal
representative (or your estate or the person who acquires the Options by will or the
laws of descent and distribution or otherwise by reason of your death if you die
during such period) may exercise the Options at any time during an Exercise Month
that is (i) during the three-month period following such termination, if such
termination is prior to October 1, 2009, or (ii) during the period following such
termination until December 31, 2009, if such termination is after September 30,
2009.”

     3. The last two paragraphs of Section 3 of the Agreement are amended to read as follows:

     “Notwithstanding any of the foregoing, the UARs shall not be exercisable in any
event after December 31, 2009.

     Except as provided in paragraphs 3(a), (b) (c) or (d) above, all Options that
are not vested on the date of your termination of employment with the
Company shall be automatically canceled without payment upon such termination.”

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     4. The Agreement shall remain in full force and effect and, as amended by this Amendment, is
hereby ratified and affirmed in all respects.

     IN WITNESS WHEREOF, the Company, by its a duly authorized officer, and the Grantee have caused
this Amendment to be executed all as of the day and year first above written.

	 	 	 	 	 
	 	UCO General Partner, LP
by its general partner
UCO GP, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Grantee

 

 	 
	 	 	 
	 	 	 
	 	 	 
	 

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