Document:

exv10w2

 

Exhibit 10.2

UNIVERSAL COMPRESSION PARTNERS, LP

LONG-TERM INCENTIVE PLAN

     SECTION 1. Purpose of the Plan. The Universal Compression Partners, L.P. Long-Term
Incentive Plan (the “Plan”) has been adopted by UCO GP, LLC, a Delaware limited liability company
(the “Company”), the general partner of UCO General Partner, LP, a Delaware limited partnership
(the “General Partner”) which is the general partner of Universal Compression Partners, L.P., a
Delaware limited partnership (the “Partnership”), and is intended to promote the interests of the
Partnership and the Company by providing to Employees, Consultants and Directors incentive
compensation awards for performance that are based on Units (as hereinafter defined). The Plan is
also contemplated to enhance the ability of the Company, the Partnership and their Affiliates to
attract and retain the services of individuals who are essential for the growth and profitability
of the Partnership and to encourage them to devote their best efforts to advancing the business of
the Partnership.

     SECTION 2. Definitions. As used in the Plan, the following terms shall have the
meanings set forth below:

     “Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used herein, the term “control” means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

     “Award” means an Option, Restricted Unit, Phantom Unit, DER, Unit Award or Substitute Award
granted under the Plan.

     “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

     “Change of Control” means, and shall be deemed to have occurred upon, one or more of the
following events:

     (i) any “person” or “group”, within the meaning of those terms as used in Sections
13(d) and 14(d)(2) of the Exchange Act, other than an Affiliate, becomes the beneficial
owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of
fifty percent (50%) or more of the voting power of the outstanding equity interests of UCH
or the Partnership;

     (ii) a Person other than UCH, the Company or an Affiliate of the Company or UCH becomes
the general partner of the Partnership; or

     (iii) the sale or other disposition, including by liquidation or dissolution, of all or
substantially all of the assets of UCH, the Company, the Partnership or UCH in one or more
transactions to any Person other than an Affiliate.

 

 

     “Committee” means the Company Board, the Compensation Committee of the Company Board or such
other committee as may be appointed by the Company Board to administer the Plan.

     “Company Board” means the Board of Directors of the Company.

     “Company Director” means a member of the Company Board who is not an Employee or a Consultant.

     “Consultant” means an individual, other than an Employee or a Director, who provides services
to the Company, the Partnership, UCH or their respective Affiliates.

     “DER” means a contingent right to receive an amount in cash equal to the cash distributions
made by the Partnership with respect to a Unit during the period such Award is outstanding.

     “Director” means a member of the Company Board or the UCH Board who is not an Employee or a
Consultant.

     “Employee” means an employee of the Company, UCH or their respective Affiliates.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means the closing sales price of a Unit on the applicable date (or if
there is no trading in the Units on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service approved by the
Committee). In the event Units are not traded on a national securities market at the time a
determination of fair market value is required to be made hereunder, the determination of fair
market value shall be made in good faith by the Committee.

     “Option” means an option to purchase Units granted under the Plan.

     “Participant” means an Employee, Consultant or Director granted an Award under the Plan.

     “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of the
Partnership, as it may be amended or amended and restated from time to time.

     “Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “Phantom Unit” means a phantom (notional) Unit granted under the Plan which upon vesting
entitles the Participant to receive a Unit or an amount of cash equal to the Fair Market Value of a
Unit, as determined by the Committee in its discretion.

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     “Restricted Period” means the period established by the Committee with respect to an Award
during which the Award remains subject to forfeiture and is either not exercisable by or payable to
the Participant, as the case may be.

     “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period.

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any successor
rule or regulation thereto as in effect from time to time.

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “Substitute Award” means an award granted pursuant to Section 6(d)(viii) of the Plan.

     “UCH” means Universal Compression Holdings, Inc., a Delaware corporation.

     “UCH Board” means the Board of Directors of UCH.

     “UCH Director” means a member of the UCH Board who is not an Employee or Consultant.

     “UDR” means a distribution made by the Partnership with respect to a Restricted Unit.

     “Unit” means a Common Unit of the Partnership.

     “Unit Award” means the grant of a Unit that is not subject to a Restricted Period.

     SECTION 3. Administration. The Plan shall be administered by the Committee. A
majority of the Committee shall constitute a quorum, and the acts of the members of the Committee
who are present at any meeting thereof at which a quorum is present, or acts unanimously approved
by the members of the Committee in writing, shall be the acts of the Committee. Subject to the
following and applicable law, the Committee, in its sole discretion, may delegate any or all of its
powers and duties under the Plan, including the power to grant Awards under the Plan, to the Chief
Executive Officer of the Company, subject to such limitations on such delegated powers and duties
as the Committee may impose, if any. Upon any such delegation all references in the Plan to the
“Committee”, other than in Section 7, shall be deemed to include the Chief Executive Officer;
provided, however, that such delegation shall not limit the Chief Executive Officer’s right to
receive Awards under the Plan. Notwithstanding the foregoing, the Chief Executive Officer may not
grant Awards to, or take any action with respect to any Award previously granted to, a person who
is an officer subject to Rule 16b-3 or a member of the Board. Subject to the terms of the Plan and
applicable law, and in addition to other express powers and authorizations conferred on the
Committee by the Plan, the Committee shall have full power and authority to: (i) designate
Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii)
determine the number of Units to be covered by Awards; (iv) determine the terms and conditions of
any Award; (v) determine whether, to what extent, and under what circumstances Awards may be
settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and any
instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend,
or waive such rules and regulations and

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appoint such agents as it shall deem appropriate for the proper administration of the Plan;
and (viii) make any other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan. The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan or an Award Agreement in such manner
and to such extent the Committee deems necessary or appropriate. Unless otherwise expressly
provided in the Plan, all designations, determinations, interpretations and other decisions under
or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may
be made at any time and shall be final, conclusive and binding upon all Persons, including the
Company, the Partnership, UCH, any Affiliate, any Participant and any beneficiary of any Award.

     SECTION 4. Units.

     (a) Limits on Units Deliverable. Subject to adjustment as provided in Section 4(c),
the number of Units that may be delivered with respect to Awards
under the Plan is 625,000.
Units withheld from an Award to satisfy the exercise price or the Company’s minimum tax withholding
obligations with respect to the Award shall not be considered to be Units delivered under the Plan
for this purpose. If any Award is forfeited, cancelled, exercised or otherwise terminates or
expires without the actual delivery of Units pursuant or with respect to such Award (the grant of
Restricted Units is not a delivery of Units for this purpose), the Units subject to such Award
shall again be available for Awards under the Plan. There shall not be any limitation on the
number of Awards that may be granted and paid in cash.

     (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate,
the Partnership or any other Person, or any combination of the foregoing, as determined by the
Committee in its discretion.

     (c) Automatic Anti-dilution Adjustments. In the event of any “equity restructuring”
event, e.g., a distribution (whether in the form of cash, Units, other securities, or other
property), recapitalization, split, reverse split, reorganization, split-up, spin-off, repurchase,
or exchange of Units or other securities of the Partnership, issuance of warrants or other rights
to purchase Units or other securities of the Partnership, or other similar transaction or event,
which event would be subject to the “anti-dilution” adjustment provisions of FAS 123R that could
result in an additional compensation expense if the adjustments were discretionary, the Committee
shall not have any discretion upon such event and shall equitably adjust the number and type of
Units (or other securities or property) covered by each outstanding Award and the terms, including
the exercise price and performance criteria (if any), of such Award to reflect such event and shall
also adjust the number and type of Units (or other securities or property) with respect to which
Awards may be granted after such event

     SECTION 5. Eligibility. Any Employee, Consultant or Director shall be eligible to be
designated a Participant and receive an Award under the Plan.

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     SECTION 6. Awards.

     (a) Options. The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Options shall be granted, the number of Units to be covered by
each Option, the purchase price therefor and the Restricted Period and other conditions and
limitations applicable to the exercise of the Option, including the following terms and conditions
and such additional terms and conditions, as the Committee shall determine in its discretion, with
respect to such Awards that are not inconsistent with the provisions of the Plan.

     (i) Exercise Price. The exercise price per Unit purchasable under an Option
shall be determined by the Committee at the time the Option is granted but, except with
respect to a Substitute Award, may not be less than its Fair Market Value as of the date of
grant.

     (ii) Time and Method of Exercise. The Committee shall determine the Restricted
Period with respect to an Option grant, which may include, without limitation, the provision
for accelerated vesting upon the achievement of specified performance goals or other events,
and the method or methods by which payment of the exercise price with respect thereto may be
made or deemed to have been made, which may include, without limitation, cash, check
acceptable to the Company, a “cashless-broker” exercise through procedures, including
limitations, approved by the Company, withholding Units from the Award upon exercise or any
combination of methods, having a Fair Market Value on the exercise date equal to the
relevant exercise price.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Option
grant, upon termination of a Participant’s employment with or consulting services to the
Company, UCH or their respective Affiliates or membership on the Company Board or UCH Board,
whichever is applicable, for any reason during the applicable Restricted Period, all Options
awarded the Participant shall be automatically forfeited by the Participant on such
termination. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Options.

     (b) Restricted Units and Phantom Units. The Committee shall have the authority to
determine the Employees, Consultants and Directors to whom Restricted Units or Phantom Units shall
be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant,
the Restricted Period, the conditions under which the Restricted Units or Phantom Units may become
vested or forfeited and additional terms and conditions, as the Committee shall determine in its
discretion, with respect to such Awards, that are not inconsistent with the provisions of the Plan.

     (i) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that distributions made by the Partnership with respect to
the Restricted Units shall be subject to the same forfeiture and other restrictions as the
Restricted Unit and, if restricted, such distributions shall be held, without interest,
until the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the
same time, as the case may be. Absent such a restriction on the UDRs in the grant
agreement, UDRs shall be paid to the holder of the Restricted Unit without restriction.

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     (ii) Forfeitures. Except as otherwise provided in the terms of the Restricted
Units or Phantom Units grant, upon termination of a Participant’s employment with or
consulting services to the Company, UCH or their respective Affiliates or membership on the
Company Board or UCH Board, whichever is applicable, for any reason during the applicable
Restricted Period, all outstanding Restricted Units and Phantom Units awarded the
Participant shall be automatically forfeited by the Participant on such termination. The
Committee may, in its discretion, waive in whole or in part such forfeiture with respect to
a Participant’s Restricted Units and/or Phantom Units.

     (iii) DERs. To the extent provided by the Committee, in its discretion, a
grant of Phantom Units may include a tandem DER grant, which may provide that such DERs
shall be paid directly to the Participant, be credited to a bookkeeping account (with or
without interest in the discretion of the Committee) and be subject to the same vesting
restrictions as the tandem Phantom Unit Award, or be subject to such other provisions or
restrictions as determined by the Committee in its discretion. If awarded, absent a
contrary provision in the grant agreement, such DERs shall be paid promptly to the
Participant without vesting restrictions.

     (iv) Lapse of Restrictions.

     (A) Phantom Units. Upon or as soon as reasonably practical following
the vesting of each Phantom Unit, subject to the provisions of Section 8(b), the
Participant shall be entitled to receive from the Company one Unit or cash equal to
the Fair Market Value of a Unit, as determined by the Committee in its discretion.

     (B) Restricted Units. Upon or as soon as reasonably practical
following the vesting of each Restricted Unit, subject to satisfying the tax
withholding obligations of Section 8(b), the Participant shall be entitled to have
the restrictions removed from his or her Unit certificate so that the Participant
then holds an unrestricted Unit.

     (c) Unit Awards. Unit Awards may be granted under the Plan to such Employees,
Consultants and/or Directors and in such amounts as the Committee, in its discretion, may
determine.

     (d) General.

     (i) Awards May Be Granted Separately or Together. Awards may, in the
discretion of the Committee, be granted either alone or in addition to, in tandem with or in
substitution for any other Award granted under the Plan or any award granted under any other
plan of the Company or any Affiliate. Awards granted in addition to or in tandem with other
Awards or awards granted under any other plan of the Company or any Affiliate may be granted
either at the same time as or at a different time from the grant of such other Awards or
awards.

     (ii) Limits on Transfer of Awards.

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     (A) Except as provided in Paragraph (C) below, each Option shall be exercisable
only by the Participant during the Participant’s lifetime, or by the person to whom
the Participant’s rights shall pass by will or the laws of descent and distribution.

     (B) Except as provided in Paragraph (C) below, no Award and no right under any
such Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company, the Partnership or any Affiliate.

     (C) To the extent specifically provided by the Committee with respect to an
Option, an Option may be transferred by a Participant without consideration to
immediate family members or related family trusts, limited partnerships or similar
entities or on such terms and conditions as the Committee may from time to time
establish.

     (iii) Term of Awards. The term of each Award shall be for such period as may
be determined by the Committee.

     (iv) Unit Certificates. All certificates for Units or other securities of the
Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations and other requirements of the SEC, any
securities exchange upon which such Units or other securities are then listed and any
applicable federal or state laws, and the Committee may cause a legend or legends to be put
on any such certificates to make appropriate reference to such restrictions.

     (v) Consideration for Grants. Awards may be granted for such consideration,
including services, as the Committee determines.

     (vi) Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any grant agreement to the
contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred
for any period during which, in the good faith determination of the Committee, the Company
is not reasonably able to obtain Units to deliver pursuant to such Award without violating
the rules or regulations of any applicable law or securities exchange. No Units or other
securities shall be delivered pursuant to any Award until payment in full of any amount
required to be paid pursuant to the Plan or the applicable Award grant agreement (including,
without limitation, any exercise price or tax withholding) is received by the Company.

     (vii) Substitute Awards. Awards may be granted under the Plan in substitution
of similar awards held by individuals who become Employees, Consultants or Directors as a
result of a merger, consolidation or acquisition by the Company, UCH or their respective
Affiliates of another entity or the assets of another entity. Such Substitute

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Awards that are Options may have exercise prices less than the Fair Market Value of a
Unit on the date of such substitution.

     SECTION 7. Amendment and Termination. Except to the extent prohibited by applicable
law:

     (a) Amendments to the Plan. Except as required by the rules of the principal
securities exchange on which the Units are traded and subject to Section 7(b) below, the Board may
amend, alter, suspend, discontinue or terminate the Plan in any manner, including increasing the
number of Units available for Awards under the Plan, without the consent of any partner,
Participant, other holder or beneficiary of an Award, or any other Person.

     (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any
conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no
change, other than pursuant to Section 7(c), in any Award shall materially reduce the benefit to
Participant without the consent of such Participant.

     (c) Actions Upon the Occurrence of Certain Events. In connection with any event
described in Section 4(c) of the Plan, or a Change of Control, any changes in applicable laws,
regulations, or accounting principles affecting the financial statements of the Partnership, the
Committee, in its sole discretion and on such terms and conditions as it deems appropriate, may
take any one or more of the following actions in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan or an outstanding
Award:

     (A) provide for either (i) the termination of any Award in exchange for an
amount of cash, if any, equal to the amount that would have been attained upon the
exercise of such Award or realization of the Participant’s rights (and, for the
avoidance of doubt, if as of the date of the occurrence of such transaction or event
the Committee determines in good faith that no amount would have been attained upon
the exercise of such Award or realization of the Participant’s rights, then such
Award may be terminated by the Company without payment) or (ii) the replacement of
such Award with other rights or property selected by the Committee in its sole
discretion;

     (B) provide that such Award be assumed by the successor or survivor entity, or
a parent or subsidiary thereof, or be substituted for by similar options, rights or
awards covering the equity of the successor or survivor, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of equity interests
and prices;

     (C) with respect to events not covered by Section 4(c), make adjustments in the
number and type of Units (or other securities or property) subject to outstanding
Awards, and in the number and kind of outstanding Awards and/or in the terms and
conditions of (including the exercise price), and the vesting/performance criteria
included in, outstanding Awards;

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     (D) provide that such Award shall be exercisable or payable, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

     (E) provide that the Award cannot be exercised or become payable after such
event (i.e., shall terminate upon such event).

Notwithstanding the foregoing, with respect to an above event that is an “equity restructuring”
event subject to Section 4(c), the adjustment provisions of Section 4(c) shall control to the
extent they are in conflict with the discretionary provisions of this Section 7 if the exercise of
such discretion would result in adverse compensation charges to the Company or Partnership for
accounting purposes.

     SECTION 8. General Provisions.

     (a) No Rights to Award. No Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each recipient.

     (b) Tax Withholding. Unless other arrangements have been made that are acceptable to
the Company, the Company or any Affiliate is authorized to withhold from any Award, from any
payment due or transfer made under any Award or from any compensation or other amount owing to a
Participant the amount (in cash, Units, Units that would otherwise be issued pursuant to such Award
or other property) of any applicable taxes payable in respect of the grant of an Award, its
exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the
Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its
withholding obligations for the payment of such taxes.

     (c) No Right to Employment or Services. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company, UCH or their
respective Affiliates, continue consulting services or to remain on the Board, as applicable.
Further, the Company, UCH or their respective Affiliates may at any time dismiss a Participant from
employment or consulting free from any liability or any claim under the Plan, unless otherwise
expressly provided in the Plan, any Award agreement or other agreement.

     (d) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Delaware without regard to its conflict of laws principles.

     (e) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Person or Award, or
would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
person or award and the remainder of the Plan and any such Award shall remain in full force and
effect.

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     (f) Other Laws. The Committee may refuse to issue or transfer any Units or other
consideration under an Award if, in its sole discretion, it determines that the issuance or
transfer of such Units or such other consideration might violate any applicable law or regulation,
the rules of the principal securities exchange on which the Units are then traded or entitle the
Partnership or an Affiliate to recover the same (or the profit therefrom) under Section 16(b) of
the Exchange Act, and any payment tendered to the Company by a Participant, other holder or
beneficiary in connection with the exercise of such Award shall be promptly refunded to the
relevant Participant, holder or beneficiary.

     (g) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company, UCH or any participating Affiliate and a Participant or any other Person. To the extent
that any Person acquires a right to receive payments from the Company or any participating
Affiliate pursuant to an Award, such right shall be no greater than the right of any general
unsecured creditor of the Company or any participating Affiliate.

     (h) No Fractional Units. No fractional Units shall be issued or delivered pursuant to
the Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Units or whether such fractional
Units or any rights thereto shall be canceled, terminated or otherwise eliminated.

     (i) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (j) Facility Payment. Any amounts payable hereunder to any person under legal
disability or who, in the judgment of the Committee, is unable to properly manage his financial
affairs, may be paid to the legal representative of such person, or may be applied for the benefit
of such person in any manner which the Committee may select, and the Company shall be relieved of
any further liability for payment of such amounts.

     (k) Participation by Affiliates. In making Awards to Employees employed by an entity
other than by the Company, the Committee shall be acting on behalf of the Affiliate, and to the
extent the Partnership has an obligation to reimburse the Company for compensation paid for
services rendered for the benefit of the Partnership, such payments or reimbursement payments may
be made by the Partnership directly to the Affiliate, and, if made to the Company, shall be
received by the Company as agent for the Affiliate.

     (l) Gender and Number. Words in the masculine gender shall include the feminine
gender, the plural shall include the singular and the singular shall include the plural.

     (m) Compliance with Section 409A. Nothing in the Plan or any Award Agreement shall
operate or be construed to cause the Plan or an Award to fail to comply with the requirements of
Section 409A of the Internal Revenue Code. The applicable provisions of Section 409A and the
regulations thereunder are hereby incorporated by reference and shall control over any Plan or
Award Agreement provision in conflict therewith.

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     SECTION 9. Term of the Plan. The Plan shall be effective on the date of its approval
by the Board and shall continue until the earliest of (i) the date terminated by the Board, (ii)
all Units available under the Plan have been paid to Participants, or (iii) the 10th anniversary of
the date the Plan is approved by the unitholders of the Company. However, unless otherwise
expressly provided in the Plan or in an applicable Award Agreement, any Award granted prior to such
termination, and the authority of the Committee to amend, alter, adjust, suspend, discontinue or
terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond
such termination date.

11exv10w3

 

EXHIBIT 10.3

 

 

UNIVERSAL COMPRESSION PARTNERS, L.P.

CONTRIBUTION, CONVEYANCE AND ASSUMPTION

AGREEMENT

 

 

 

 

CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of [October___], 2006, is
entered into by and among UNIVERSAL COMPRESSION PARTNERS, L.P., a Delaware limited partnership
(“MLP”), UC OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“OLP”),
UCO GP, LLC, a Delaware limited liability company (“GP LLC”), UCO GENERAL PARTNER, LP, a
Delaware limited partnership (“GP”), UNIVERSAL COMPRESSION, INC., a Texas corporation
(“UCI”), UCO COMPRESSOR 2005 LLC, a Delaware limited liability company (“UCO
2005”), UCLP LEASING, L.P., a Delaware limited partnership (“Leasing LP”), UCI MLP LP
LLC, a Delaware limited liability company (“MLP LP LLC”), UCI GP LP LLC, a Delaware limited
liability company (“LP LLC”), UCLP OLP GP LLC, a Delaware limited liability company
(“OLP GP”), UCLP LEASING GP LLC, a Delaware limited liability company (“Leasing
GP”). The parties to this agreement are collectively referred to herein as the
“Parties.” Capitalized terms used herein shall have the meanings assigned to such terms in
Section 1.1.

RECITALS

     WHEREAS, UCI and GP have formed MLP, pursuant to the Delaware Revised Uniform Limited
Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any business
activity that is approved by GP and that lawfully may be conducted by a limited partnership
organized pursuant to the Delaware Act.

     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, the
following actions have been taken prior to the date hereof:

          1. UCI formed GP LLC, under the terms of the Delaware Limited Liability Company Act (the
“Delaware LLC Act”), and contributed $1,000 in exchange for all of the member interests in
GP LLC.

          2. GP LLC and UCI formed GP, under the terms of the Delaware LP Act, to which GP LLC
contributed $0.01 and UCI contributed $999.99 in exchange for a 0.001% general partner interest and
99.999% limited partner interest, respectively.

          3. GP and UCI formed MLP, under the terms of the Delaware LP Act, to which GP contributed $20
and UCI contributed $980 in exchange for a 2% general partner interest and 98% limited partner
interest, respectively.

          4. UCI formed OLP GP, under the terms of the Delaware LLC Act, and contributed $1,000 in
exchange for all of the member interests in OLP GP.

 

 

          5. OLP GP and UCI formed OLP, under the terms of the Delaware LP Act, to which OLP GP
contributed $0.02 and UCI contributed $1,999.98 in exchange for a 0.001% general partner interest
and 99.999% limited partner interest, respectively.

          6. OLP formed Leasing GP, under the terms of the Delaware LLC Act, and contributed $100 in
exchange for all of the member interests in Leasing GP.

          7. Leasing GP and OLP formed Leasing LP, under the terms of the Delaware LP Act, to which
Leasing GP contributed $0.01 and OLP contributed $999.99 in exchange for a 0.001% general partner
interest and 99.999% limited partner interest, respectively.

          8. UCI formed MLP LP LLC, under the terms of the Delaware LLC Act, and contributed $1,000 in
exchange for all of the member interests in MLP LP LLC.

          9. UCI formed LP LLC, under the terms of the Delaware LLC Act, and contributed $1,000 in
exchange for all of the member interests in LP LLC.

          10. UCI formed UCI Leasing Holding GP LLC, a Delaware limited liability company (“Holding
GP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange for all of
the member interests in Holding GP.

          11. UCI formed UCI Leasing Holding LP LLC, a Delaware limited liability company (“Holding
LP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange for all of
the member interests in Holding LP.

          12. Holding GP and UCI formed UCI Compressor Holding, L.P., a Delaware limited partnership
under the terms of the Delaware LP Act (“Compressor Holding LP”), to which Holding GP
contributed $0.01 and UCI contributed $999.99 in exchange for a 0.001% general partner interest and
99.999% limited partner interest, respectively.

          13. UCI has conveyed all of its Compression Equipment, other than its Compression Equipment to
be conveyed to the MLP set forth on Schedule A (the “UCI MLP Compression Equipment”), to
Compressor Holding LP as a capital contribution (.001% on behalf of Holdings GP and 99.99% on its
own behalf) pursuant to, and in accordance with, that certain [Assignment, Conveyance and Bill of
Sale] between UCI and Compressor Holding LP dated as of [     ], 2006.

          14. UCI has conveyed all of its limited partner interest in Compressor Holding LP to Holding
LP as a capital contribution.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of
the following matters shall occur:

          1. UCI will contribute to OLP $[     ] as a capital contribution (of which 0.001% of such
contribution will be made to OLP on behalf of OLP GP) (the “Purchase Cash”).

3

 

          2. OLP will contribute to Leasing LP the Purchase Cash as a capital contribution (of which
0.001% of such contribution will be made to Leasing LP on behalf of Leasing GP).

          3. UCO 2005 will convey the Compression Equipment set forth on Schedule B hereto (the “UCO
2005 MLP Compression Equipment”) and the compression services agreements set forth on Schedule
C hereto (the “UCO 2005 MLP CSAs”) to Leasing LP pursuant to, and in accordance with, that
certain [Assignment, Conveyance and Bill of Sale] between UCO 2005 and Leasing LP dated as of the
date hereof in the form set forth as Exhibit [A] hereto (the “UCO 2005 Bill of Sale”) in
exchange for the Purchase Cash.

          4. Leasing LP will distribute the UCO 2005 MLP CSAs to OLP pursuant to, and in accordance
with, that certain [Assignment and Assumption Agreement] between Leasing LP and OLP dated as of the
date hereof in the form set forth as Exhibit [B] hereto (the “Leasing LP Assignment and
Assumption Agreement”) as a distribution.

          5. UCI will convey the UCI MLP Compression Equipment and the compression services agreements
set forth on Schedule D hereto (the “UCI MLP CSAs”) to OLP pursuant to, and in accordance
with, that certain [Assignment, Conveyance and Bill of Sale] between UCI and OLP dated as of the
date hereof in the form set forth as Exhibit [C] hereto (the “UCI Bill of Sale”) as a
capital contribution to OLP and in exchange for OLP’s assumption of $[223,250,000] of UCI’s
indebtedness (the “Debt”).

          6. OLP will contribute the UCI MLP Compression Equipment to Leasing LP pursuant to, and in
accordance with, that certain [Assignment, Conveyance and Bill of Sale] between OLP and Leasing LP
dated as of the date hereof in the form set forth as Exhibit [D] hereto (the “OLP Bill of
Sale”) as a capital contribution to Leasing LP.

          7. UCI will convey a limited partner interest in OLP with a value equal to 2% of the equity of
MLP immediately after the Closing Date (as defined below) (the “Interest”) to GP as a
capital contribution (of which 0.001% of such conveyance will be made to OLP on behalf of GP LLC).

          8. GP will contribute the Interest to MLP in exchange for (a) a continuation of its 2% general
partner interest in MLP and (b) the issuance of the IDRs of the MLP.

          9. UCI will contribute its remaining limited partner interest in OLP and its member interest
in OLP GP to MLP in exchange for (a) 825,000 Common Units in MLP (representing a 6.4% interest in
MLP) (the “UCI Common Units”) and (b) 6,325,000 Sub Units in MLP (representing a 49%
interest in MLP) (the “UCI Subordinated Units”).

          10. The public, through the Underwriters, will contribute $[     ] million in cash, less the net
amount of $[     ] payable to the Underwriters after taking into account the Underwriters’ discount
of $[     ] (the “Spread”) and the structuring fees payable to the Underwriters of $[500,000]
(the “Fee”), in exchange for 5,500,000 Common Units in MLP (representing a 42.6% interest
in MLP) (the “Underwritten Units”).

4

 

          11. MLP will (a) pay transaction expenses associated with the transactions contemplated by
this Agreement in the amount of approximately $[3.0] million (exclusive of the Spread and the Fee)
and (b) contribute $[ ] million in cash to OLP as a capital contribution (of which 0.001% of such
contribution will be made to OLP on behalf of OLP GP) (the “Contributed Cash”).

          12. OLP will borrow $[125.0] million ($[123.90] million net of fees) from lenders pursuant to
the Credit Agreement (the “New Debt”).

          13. OLP will use the Contributed Cash and the New Debt to retire and repay the Debt.

          14. UCI will convey its limited partner interest in the GP to LP LLC as a capital
contribution.

          15. UCI will convey the UCI Common Units and the UCI Subordinated Units to MLP LP LLC as a
capital contribution.

          16. If the Underwriters exercise their option to purchase up to an additional 825,000 Common
Units (the “Overallotment Option”), the MLP will use the proceeds of that exercise, net of
the applicable Underwriter’s spread, to redeem from MLP LP LLC a number of Common Units equal to
the number of Common Units sold by MLP pursuant to the exercise of the Overallotment Option.

          17. The agreements of limited partnership and the limited liability company agreements of the
aforementioned entities will be amended and restated to the extent necessary to reflect the
applicable matters set forth above and as contained in this Agreement.

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

ARTICLE 1

DEFINITIONS

          Section 1.1 The following capitalized terms shall have the meanings given below.

          (a) “Acquisition” means the consummation of the transactions contemplated by the terms
of this Agreement.

          (b) “Agreement” means this Contribution, Conveyance and Assumption Agreement.

          (c) “Closing Date” has the meaning assigned to such term in the Partnership Agreement.

          (d) “Common Unit” has the meaning assigned to such term in the Partnership Agreement.

5

 

          (e) “Compression Equipment” means natural gas or coalbed methane compressor units,
together with any tangible components thereof, all related appliances, parts, accessories,
appurtenances, accessions, additions, improvements and replacements thereto, all other equipment or
components of any nature from time to time incorporated or installed therein and all substitutions
for any of the foregoing.

          (f) “Credit Agreement” means that certain $225.0 million revolving credit agreement of
even date herewith, among the OLP, MLP, Wachovia Bank, National Association, Deutsche Bank Trust
Company Americas, Fortis, Capital Corp., Wells Fargo Bank, National Association and the other
lenders party thereto.

          (g) “Effective Time” shall mean [8:00 a.m.] New York, New York time on [October ],
2006.

          (h) “IDRs” means “Incentive Distribution Rights” as such term is defined in the
Partnership Agreement.

          (i) “MLP” has the meaning assigned to such term in the opening paragraph of this
Agreement.

          (j) “Offering” means the initial public offering by MLP of Common Units.

          (k) “Omnibus Agreement” has the meaning assigned to such term in the Partnership
Agreement.

          (l) “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Universal Compression Partners, L.P. dated as of [October ], 2006.

          (m) “Partnership Group” has the meaning assigned to such term in the Omnibus
Agreement.

          (n) “Registration Statement” means the registration statement on Form S-1
(Registration No. 333-135351) filed by MLP relating to the Offering.

          (o) “Subordinated Unit” has the meaning assigned to such term in the Partnership
Agreement.

          (p) “Underwriters” means Merrill, Lynch, Pierce, Fenner & Smith Incorporated, Lehman
Brothers Inc., Deutsche Bank Securities Inc., Wachovia Capital Markets, LLC and A.G. Edwards &
Sons, Inc.

ARTICLE 2

CONTRIBUTIONS, CONVEYANCES, ACKNOWLEDGMENTS AND DISTRIBUTIONS

          Section 2.1 Contribution of Purchase Cash to OLP. UCI hereby grants, bargains,
conveys, assigns, transfers, sets over and delivers to OLP, its successors and assigns, for its own
use forever, all right, title and interest in and to the Purchase Cash as a capital

6

 

contribution (of which 0.001% of such contribution is being made on behalf of OLP GP). OLP
hereby accepts such Purchase Cash as a contribution to the capital of OLP.

          Section 2.2 Contribution of Cash to Leasing LP. OLP hereby grants, bargains, conveys,
assigns, transfers, sets over and delivers to Leasing LP, its successors and assigns, for its own
use forever, all right, title and interest in and to the Purchase Cash as a capital contribution
(of which 0.001% of such contribution is being made on behalf of Leasing GP). Leasing LP hereby
accepts such Cash Contribution as a contribution to the capital of Leasing LP.

          Section 2.3 Conveyance of UCO 2005 Compression Equipment and UCO 2005 CSAs to Leasing
LP. UCO 2005 hereby grants, bargains, conveys, assigns, transfers, sets over and delivers to
Leasing LP, its successors and assigns, for its own use forever, all right, title and interest in
and to the UCO 2005 Compression Equipment and the UCO 2005 CSAs in exchange for the Purchase Cash.
Leasing LP hereby accepts the UCO 2005 Compression Equipment and assumes the UCO 2005 CSAs. The
transfer of the UCO 2005 Compression Equipment from UCO 2005 to Leasing LP and the assumption of
the UCO 2005 CSAs by Leasing LP from UCO 2005 shall be further evidenced by the execution and
delivery by UCO 2005 and Leasing LP of the UCO 2005 Bill of Sale.

          Section 2.4 Distribution of UCO 2005 CSAs to OLP. Leasing LP hereby distributes,
grants, bargains, conveys, assigns, transfers, sets over and delivers to OLP, their successors and
assigns, for its own use forever, all right, title and interest in and to the UCO 2005 CSAs (of
which 0.001% of such distribution is being made on behalf of Leasing GP). OLP hereby assumes the
UCO 2005 CSAs as a distribution from Leasing LP. The distribution of the UCO 2005 CSAs from
Leasing LP to OLP shall be further evidenced by the execution and delivery by Leasing LP and OLP of
the Leasing LP Assignment and Assumption Agreement.

          Section 2.5 Contribution of UCI MLP Compression Equipment to OLP and Assumption of UCI MLP
CSAs by OLP. UCI hereby grants, bargains, conveys, assigns, transfers, sets over and delivers
to OLP, its successors and assigns, for its own use forever, all right, title and interest in and
to the UCI MLP Compression Equipment and the UCI MLP CSAs as a capital contribution (of which
0.001% of such contribution is being made on behalf of OLP GP) and in exchange for OLP’s assumption
of the Debt. OLP hereby accepts the UCI MLP Compression Equipment and assumes the UCI MLP CSAs and
the Debt. The transfer of the UCI MLP Compression Equipment from UCI to OLP and the assumption of
the UCI MLP CSAs and the Debt by OLP by OLP from UCI shall be further evidenced by the execution
and delivery by UCI and OLP of the UCI Bill of Sale.

          Section 2.6 Contribution of UCI MLP Compression Equipment to Leasing LP. OLP hereby
grants, bargains, conveys, assigns, transfers, sets over and delivers to Leasing LP, its successors
and assigns, for its own use forever, all right, title and interest in and to the UCI MLP
Compression Equipment as a capital contribution (of which 0.001% of such contribution is being made
on behalf of Leasing GP). The transfer of the UCI MLP Compression Equipment from OLP to Leasing LP
shall be further evidenced by the execution and delivery by OLP and Leasing LP of the OLP Bill of
Sale.

7

 

          Section 2.7 Contribution of the Interest to GP. UCI hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to GP, its successors and assigns,
for its and their own use forever, all right, title and interest in and to the Interest (of which
0.001% of such contribution is being made on behalf of GP LLC), as a capital contribution. GP
hereby accepts the Interest as a contribution to the capital of GP.

          Section 2.8 Contribution of the Interest by GP to MLP. GP hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns,
for its and their own use forever, all right, title and interest in and to the Interest, as a
capital contribution, in exchange for (a) a continuation of its 2% general partner interest in MLP
and (b) the issuance by MLP of the IDRs. MLP hereby accepts the Interest as a contribution to the
capital of MLP.

          Section 2.9 Contribution of Remaining Interests in OLP and OLP GP to MLP. UCI hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
its limited partner interest in OLP and its member interests in OLP GP in exchange for (a) the
issuance by MLP of the UCI Common Units and (b) the issuance by MLP of the UCI Subordinated Units.
MLP hereby accepts such partner interests in OLP and such member interests in OLP GP as a
contribution to the capital of MLP.

          Section 2.10 Public Cash Contribution. The Parties acknowledge a capital contribution
by the public through the Underwriters to MLP of $[ ] in cash ($[ ] net to MLP
after taking into account the Spread and the Fee) in exchange for the Underwritten Units.

          Section 2.11 Payment of Transaction Costs. The Parties acknowledge (a) the payment by
MLP, in connection with the Acquisition, of transaction expenses in the amount of approximately
$[3.0] million (exclusive of the Spread and the Fee) and (b) the contribution by MLP of the
Contributed Cash to OLP (of which 0.001% is being contributed on behalf of OLP GP) as a capital
contribution.

          Section 2.12 Incurrence of New Debt by OLP. The Parties acknowledge the incurrence of
the New Debt by OLP.

          Section 2.13 Repayment of Old Debt by OLP. The Parties acknowledge the repayment of
the Old Debt by the OLP with the proceeds of the New Debt and the Contributed Cash.

          Section 2.14 Conveyance of Limited Partner Interest in GP by UCI to LP LLC. UCI
hereby grants, bargains, conveys, assigns, transfers, sets over and delivers to LP LLC, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
its limited partner interest in GP, as a capital contribution. LP LLC hereby accepts such limited
partner interest as a contribution to the capital of LP LLC.

          Section 2.15 Conveyance of UCI Common Units and UCI Subordinated Unit by UCI to MLP
LLC. UCI hereby grants, bargains, conveys, assigns, transfers, sets over and delivers to MLP
LLC, its successors and assigns, for its and their own use forever, all right, title and interest
in and to the UCI Common Units and the UCI Subordinated Units, as a capital

8

 

contribution. MLP LLC hereby accepts such UCI Common Units and UCI Subordinated Units as a
contribution to the capital of MLP LLC.

ARTICLE 3

ADDITIONAL TRANSACTIONS

          Section 3.1 Purchase of Additional Common Units. If the Overallotment Option is
exercised in whole or in part, the public, through the Underwriters, will contribute additional
cash to MLP in exchange for up to an additional 825,000 Common Units.

          Section 3.2 Redemption of Common Units. MLP hereby agrees to redeem a number of Common
Units held by MLP LLC equal to the number of Common Units issued to the public, through the
underwriters, upon exercise of the Overallotment Option, if any, at a redemption price per Common
Unit equal to the initial public offering price per Common Unit, net of underwriting discounts.

ARTICLE 4

TITLE MATTERS

          Section 4.1 Encumbrances.

          (a) Except to the extent provided in any other document executed in connection with this
Agreement or the Offering, the contribution and conveyance (by operation of law or otherwise) of
the various physical assets owned as reflected in this Agreement (collectively, the
“Assets”) are made expressly subject to all recorded and unrecorded liens (other than
consensual liens), encumbrances, agreements, defects, restrictions, adverse claims and all laws,
rules, regulations, ordinances, judgments and orders of governmental authorities or tribunals
having or asserting jurisdictions over the Assets and operations conducted thereon or in connection
therewith, in each case to the extent the same are valid and enforceable and affect the Assets,
including all matters that a current survey or visual inspection of the Assets would reflect.

          (b) To the extent that certain jurisdictions in which the Assets are located may require that
documents be recorded in order to evidence the transfers of title reflected in this Agreement, then
the provisions set forth in Section 4.1(a) immediately above shall also be applicable to the
conveyances under such documents.

          Section 4.2 Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

          (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE EXHIBITS HERETO AND THE
OMNIBUS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT
MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES,
PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS,
IMPLIED OR

9

 

STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR
CONDITION OF THE ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL
CONDITION OF THE ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER
MATTERS ON THE ASSETS, (B) THE INCOME TO BE DERIVED FROM THE ASSETS, (C) THE SUITABILITY OF THE
ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE OF OR
BY THE ASSETS OR THEIR OPERATION WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING,
ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS),
OR (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OF THE ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED
IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE EXHIBITS
HERETO AND THE OMNIBUS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE
OPPORTUNITY TO INSPECT THE RESPECTIVE ASSETS, AND EACH IS RELYING SOLELY ON ITS OWN INVESTIGATION
OF THE RESPECTIVE ASSETS AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE
PARTIES. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE EXHIBITS HERETO AND THE
OMNIBUS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE ASSETS FURNISHED BY ANY AGENT,
EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE
EXHIBITS HERETO AND THE OMNIBUS AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES THAT TO THE MAXIMUM
EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE ASSETS AS PROVIDED FOR HEREIN IS MADE IN AN “AS
IS”, “WHERE IS” CONDITION WITH ALL FAULTS, AND THE ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO
ALL OF THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND
CONVEYANCE OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN
NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND
NEGATION OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT
TO THE ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT
AS SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS
AGREEMENT OR THE OFFERING, INCLUDING, WITHOUT LIMITATION, THE EXHIBITS HERETO AND THE OMNIBUS
AGREEMENT.

          (b) The contributions of the Assets made under this Agreement are made with full rights of
substitution and subrogation of the respective parties receiving such contributions,

10

 

and all persons claiming by, through and under such parties, to the extent assignable, in and
to all covenants and warranties by the predecessors-in-title of the parties contributing the
Assets, and with full subrogation of all rights accruing under applicable statutes of limitation
and all rights of action of warranty against all former owners of the Assets.

          (c) Each of the Parties agrees that the disclaimers contained in this Section 4.2 are
“conspicuous” disclaimers. Any covenants implied by statute or law by the use of the words
“grant,” “convey,” “bargain,” “sell,” “assign,” “transfer,” “deliver,” or “set over” or any of them
or any other words used in this Agreement or any exhibits hereto are hereby expressly disclaimed,
waived or negated.

          (d) Each of the Parties hereby waives compliance with any applicable bulk sales law or any
similar law in any applicable jurisdiction in respect of the transactions contemplated by this
Agreement.

ARTICLE 5

FURTHER ASSURANCES

     From time to time after the Effective Time, and without any further consideration, the Parties
agree to execute, acknowledge and deliver all such additional assignments, bills of sale,
conveyances, instruments, notices, releases, acquittances and other documents, and will do all such
other acts and things, all in accordance with applicable law, as may be necessary or appropriate
(a) more fully to assure that the applicable Parties own all of the properties, rights, titles,
interests, remedies, powers and privileges granted by this Agreement, or which are intended to be
so granted, or (b) more fully and effectively to vest in the applicable Parties and their
respective successors and assigns beneficial and record title to the interests contributed and
assigned by this Agreement or intended so to be and to more fully and effectively carry out the
purposes and intent of this Agreement.

ARTICLE 6

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article 2 or Article 3 of this Agreement shall be operative or have any effect until the
Effective Time, at which time all the provisions of Article 2 and Article 3 of this Agreement shall
be effective and operative in accordance with Article 7, without further action by any party
hereto.

ARTICLE 7

MISCELLANEOUS

          Section 7.1 Order of Completion of Transactions. The transactions provided for in
Article 2 and Article 3 of this Agreement shall be completed immediately following the Effective
Time in the following order: first, the transactions provided for in Article 2 shall be completed
in the order set forth therein; and second, following the completion

11

 

of the transactions as provided in Article 2, the transactions, if they occur, provided for in
Article 3 shall be completed.

          Section 7.2 Costs. Except for the transaction costs set forth in Section 2.11, the
OLP shall pay all expenses, fees and costs, including but not limited to, all sales, use and
similar taxes arising out of the contributions, conveyances and deliveries to be made hereunder and
shall pay all documentary, filing, transfer, and conveyance taxes and fees required in connection
therewith. In addition, the OLP shall be responsible for all costs, liabilities and expenses
(including court costs and reasonable attorneys’ fees) incurred in connection with the
implementation of any conveyance or delivery pursuant to Article 5.

          Section 7.3 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole,
including, without limitation, all Schedules and Exhibits attached hereto, and not to any
particular provision of this Agreement. All references herein to Articles, Sections, Schedules and
Exhibits shall, unless the context requires a different construction, be deemed to be references to
the Articles and Sections of this Agreement and the Schedules and Exhibits attached hereto, and all
such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof
for all purposes. All personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders, and the singular shall include the
plural and vice versa. The use herein of the word “including” following any general statement,
term or matter shall not be construed to limit such statement, term or matter to the specific items
or matters set forth immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation”, “but not limited to”, or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such general statement,
term or matter.

          Section 7.4 Successors and Assigns. The Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and assigns.

          Section 7.5 No Third Party Rights. The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create rights in any other
person or confer upon any other person any benefits, rights or remedies and no person is or is
intended to be a third party beneficiary of any of the provisions of this Agreement.

          Section 7.6 Counterparts. This Agreement may be executed in any number of
counterparts, including facsimile counterparts, all of which together shall constitute one
agreement binding on the parties hereto.

          Section 7.7 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas applicable to contracts made and to be performed
wholly within such state without giving effect to conflict of law principles thereof.

12

 

          Section 7.8 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political
body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provision or provisions held to be invalid and an equitable adjustment shall
be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

          Section 7.9 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties. Each such instrument shall be
reduced to writing and shall be designated on its face as an Amendment to this Agreement.

          Section 7.10 Integration. This Agreement, the Exhibits attached hereto and the
instruments referenced herein supersede all previous understandings or agreements among the
Parties, whether oral or written, with respect to their subject matter. This document and such
instruments contain the entire understanding of the Parties with respect to the subject matter
hereof and thereof. No understanding, representation, promise or agreement, whether oral or
written, is intended to be or shall be included in or form part of this Agreement unless it is
contained in a written amendment hereto executed by the parties hereto after the date of this
Agreement.

          Section 7.11 Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “bill of sale” or “assignment” of the assets
and interests referenced herein.

[SIGNATURE PAGES FOLLOW]

13

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	UNIVERSAL COMPRESSION PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	UCO General Partner, LP, its general	 	 
	 	 	partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	UCO GP, LLC, its

general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	UC OPERATING PARTNERSHIP, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	UCLP OLP GP LLC, its

general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	UCO GP, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	UCO GENERAL PARTNER, LP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	UCO GP, LLC, its

general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

Signature Page to Contribution, Conveyance and Assumption Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	UNIVERSAL COMPRESSION, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	UCO COMPRESSOR 2005 LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	UCLP LEASING, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	UCLP Leasing GP LLC, its

general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	UCLP OLP GP LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Signature Page to Contribution, Conveyance and Assumption Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	UCLP LEASING GP LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	UCI MLP LP LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	UCI GP LP LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Signature Page to Contribution, Conveyance and Assumption Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]