Document:

<PAGE>   1
                                                                   Exhibit 4.11
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                    BRL UNIVERSAL COMPRESSION FUNDING I, L.P.
                                     Issuer

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
                                Indenture Trustee

                         ------------------------------

                            SERIES 2001-1 SUPPLEMENT

                          Dated as of February 9, 2001

                                       to

                                    INDENTURE

                          Dated as of February 9, 2001

                         ------------------------------

                               SERIES 2001-1 NOTES

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<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                           Page
                                                                           ----

                                    ARTICLE I

                       Definitions; Calculation Guidelines
<S>          <C>                                                            <C>
Section 101. Definitions.....................................................1

                                   ARTICLE II

                       Creation of the Series 2001-1 Notes

Section 201. Designation....................................................12
Section 202. Authentication and Delivery....................................12
Section 203. Interest Payments on the Series 2001-1 Notes...................13
Section 204. Principal Payments on the Series 2001-1 Notes..................13
Section 205. Amounts and Terms of Series 2001-1 Noteholder Commitments......14
Section 206. Taxes..........................................................16
Section 207. Increased Costs; Capital Adequacy; Illegality..................17

                                   ARTICLE III

                        Series 2001-1 Series Account and
                 Allocation and Application of Amounts Therein

Section 301. Series 2001-1 Series Account...................................19
Section 302. Distributions from Series 2001-1 Series Account................19

                                   ARTICLE IV

                              Additional Covenants

Section 401. Additional Series..............................................20
Section 402. Control Party..................................................20
Section 403. Rule 144A......................................................20
Section 404. Use of Proceeds................................................20
Section 405. Allocation of Prepayments......................................20

                                    ARTICLE V

                 Conditions of Effectiveness and Future Lending

Section 501. Effectiveness of Supplement....................................21
</TABLE>

                                      -i-

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<TABLE>

<S>          <C>                                                           <C>
Section 502. Advances on Series 2001-1 Notes................................22

                                   ARTICLE VI

                         Representations and Warranties

Section 601. Existence......................................................24
Section 602. Authorization..................................................24
Section 603. No Conflict; Legal Compliance..................................24
Section 604. Validity and Binding Effect....................................24
Section 605. Financial Statements...........................................24
Section 606. Executive Offices..............................................25
Section 607. No Agreements or Contracts.....................................25
Section 608. Consents and Approvals.........................................25
Section 609. Margin Regulations.............................................25
Section 610. Taxes..........................................................25
Section 611. Other Regulations..............................................26
Section 612. Solvency and Separateness......................................26
Section 613. Survival of Representations and Warranties.....................26
Section 614. No Default.....................................................27
Section 615. Litigation and Contingent Liabilities..........................27
Section 616. Title; Liens...................................................27
Section 617. Subsidiaries...................................................27
Section 618. No Partnership.................................................27

                                   ARTICLE VII

                            Miscellaneous Provisions

Section 701. Ratification of Indenture......................................28
Section 702. Counterparts...................................................28
Section 703. Governing Law..................................................28
Section 704. Statutory References...........................................28
</TABLE>

                                      -ii-
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<TABLE>
<CAPTION>

EXHIBITS
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<S>       <C>
A   --    Form of Class A Note

</TABLE>

                                     -iii-
<PAGE>   5

              SERIES 2001-1 SUPPLEMENT, dated as of February 9, 2001 (the
              "Supplement"), between BRL UNIVERSAL COMPRESSION FUNDING I,
              L.P., a limited partnership organized under the laws of the
              State of Delaware (the "Issuer") and Wells Fargo Bank
              Minnesota, NATIONAL ASSOCIATION, a national banking
              association, as Indenture Trustee (the "Indenture Trustee").

                              W I T N E S S E T H :

                  Pursuant to the Indenture, dated as of February 9, 2001 (as
amended, modified or supplemented from time to time in accordance with its
terms, the "Indenture"), between the Issuer and the Indenture Trustee, the
Issuer may from time to time direct the Indenture Trustee to authenticate one or
more new Series of Notes. The Principal Terms of any new Series are to be set
forth in a Supplement to the Indenture.

                  Pursuant to this Supplement, the Issuer and the Indenture
Trustee shall create a new Series of Notes and specify the Principal Terms
thereof.

         NOW THEREFORE, in consideration of the mutual agreements herein
contained, each party agrees as follows for the benefit of the other parties and
the Series 2001-1 Noteholders:

                                    ARTICLE I

                      Definitions; Calculation Guidelines

                  Section 101. Definitions. (a) Whenever used in this
Supplement, the following words and phrases shall have the following meanings,
and the definitions of such terms are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and
neuter genders of such terms. Capitalized terms used herein and not otherwise
defined shall have the meanings given to such terms in the Indenture.

                  "ADJUSTED EURODOLLAR RATE" means on any day, an interest rate
per annum equal to the quotient, expressed as a percentage and rounded upwards
(if necessary) to the nearest 1/100 of 1%, obtained by dividing (i) the LIBOR
Rate on such day by (ii) the decimal equivalent of 100% minus the Eurodollar
Reserve Percentage on such day.

                  "AFFECTED PARTY" means each Series 2001-1 Noteholder, each
Liquidity Bank, all assignees and purchaser of each Series 2001-1 Noteholder or
Liquidity Bank, the Deal Agent or any sub-agent of the Deal Agent.

                  "AFFILIATE" shall have the meaning set forth in Section 101 of
the Indenture.

<PAGE>   6

                  "AGGREGATE CLASS A NOTE PRINCIPAL BALANCE" means, as of any
date of determination, an amount equal to the sum of the Class A Note Principal
Balances of all Series 2001-1 Notes then Outstanding.

                  "ALTERNATIVE RATE" means on any day, an interest rate per
annum equal to the Adjusted Eurodollar Rate; provided, however, that the
Alternative Rate on any such day for the outstanding principal amount of any
Class A Advance allocated to an Interest Accrual Period shall be the Base Rate
if (i) on or before the first day of such Interest Accrual Period, the Deal
Agent shall have been notified that a Eurodollar Disruption Event has occurred
and is continuing and (ii) as a result thereof, such Class A Advance was funded
by a source of funds for which interest is determined by reference to the Base
Rate.

                  "APPLICABLE MARGIN" means, with respect to each unpaid Class A
Advance during an Interest Accrual Period, one of the following amounts:

         (A)      for the period commencing on the Closing Date to (but not
                  excluding) February 9, 2002, either (x) one and one-half of
                  one percent (1.50%) per annum or (y) if a Back-up Management
                  Agreement has not been executed and delivered to each of the
                  Indenture Trustee and the Deal Agent by August 9, 2001, two
                  percent (2%) per annum commencing on (and including) August 9,
                  2001 to (but excluding) the earlier of (x) February 9, 2002
                  and (y) the date on which the Back-up Management Agreement is
                  executed and delivered as set forth above;

         (B)      for the period commencing on February 9, 2002 to (but
                  including) February 9, 2003, either (x) two percent (2.00%)
                  per annum or (y) if a Back-up Management Agreement has not
                  been executed and delivered to each of the Indenture Trustee
                  and the Deal Agent, three and one-half percent (3.5%) per
                  annum provided that this clause (y) shall cease to be
                  effective on the date on which the Back-up Management
                  Agreement is executed and delivered as set forth above;

         (C)      for the period from February 9, 2003 and thereafter, either
                  (x) two and one-half of one percent (2.50%) per annum or (y)
                  if a Back-up Management Agreement has not been executed and
                  delivered to each of the Indenture Trustee and the Deal Agent,
                  three and one half percent (3.5%) provided that this clause
                  (y) shall cease to be effective on the date on which the
                  Back-up Management Agreement is executed and delivered.

         (D)      if any Class A Advance (or portion thereof) has been funded
                  utilizing a source of funds for which interest is determined
                  by reference to the Base Rate, then, for any period of time
                  for which such Class A Advance has been funded at the Base
                  Rate, zero.

                  "APPRAISED VALUE" shall have the meaning set forth in Section
101 of the Indenture.

                  "ASSET BASE" shall have the meaning set forth in Section 101
of the Indenture.

                                       2
<PAGE>   7

                  "ASSET BASE CERTIFICATE" shall have the meaning set forth in
Section 101 of the Indenture.

                  "AVAILABILITY" means, as of any date of determination for any
Series 2001-1 Noteholder prior to the Conversion Date, the lesser of (A) the
excess, if any of (x) the Class A Note Existing Commitment of such Series 2001-1
Noteholder on such date of determination over (y) the then Class A Note
Principal Balance of such Series 2001-1 Note owned by such Series 2001-1
Noteholder on such date of determination or (B) the excess, if any, of (x) the
Percentage of such Series 2001-1 Noteholder of the Asset Base over (y) the then
Class A Note Principal Balance of the Series 2001-1 Note owned by such Series
2001-1 Noteholder. On or subsequent to the Conversion Date, zero.

                  "BACK-UP MANAGEMENT AGREEMENT" shall have the meaning set
forth in Section 101 of the Indenture.

                  "BASE RATE" means on any date, a fluctuating rate of interest
per annum equal to the higher of (a) the Prime Rate and (b) the Federal Funds
Rate plus 0.50% per annum.

                  "BREAKAGE COSTS" shall have the meaning set forth in Section
205(c) hereof.

                  "BUSINESS DAY" shall have the meaning set forth in Section 101
of the Indenture.

                  "CAPITAL" shall have the meaning set forth in the Partnership
Agreement.

                  "CLASS A ADVANCE" means an advance of funds made by a Class A
Noteholder pursuant to the provisions of Section 205(b) of this Supplement.

                  "CLASS A NOTE" means any one of the notes, substantially in
the form of Exhibit A to this Supplement, issued pursuant to the terms of this
Supplement.

                  "CLASS A NOTE EXISTING COMMITMENT" means the aggregate initial
commitment to purchase the Class A Notes, expressed as a dollar amount, subject
to reduction in accordance with the terms of the Series 2001-1 Note Purchase
Agreement.

                  "CLASS A NOTE INTEREST PAYMENT" means for each Payment Date
and each Series 2001-1 Noteholder, an amount equal to the sum, for each day
during the immediately preceding calendar month ending on the immediately
preceding day, of an amount equal to the product of (i) the principal amount of
each Class A Advance, (ii) a rate equal to the sum of (x) the Alternative Rate
on such day and (y) the Applicable Margin, and (iii) 1/360, in the case of the
Adjusted Eurodollar Rate, or 1/365 or 1/366, as applicable, in the case of the
Base Rate.

The Deal Agent shall, by not later than the fifth (5th) Business Day proceeding
each Payment Date, deliver to each of the Issuer and the Manager a calculation
of the Class A Note Interest Payment payable on such Payment Date.

                                       3
<PAGE>   8

                  "CLASS A NOTE PRINCIPAL BALANCE" means, with respect to any
Class A Note as of any date of determination, an amount equal to the excess of
(x) the sum of (A) the Class A Note Principal Balance of such Class A Note on
the Effective Date and (B) the sum of all Class A Advances made by such Class A
Noteholder on or subsequent to the Effective Date, over (y) the cumulative
amount of all other principal payments (including Prepayments) actually paid to
such Series 2001-1 Noteholder subsequent to the Effective Date.

                  "CLASS A NOTE UNUSED COMMITMENT" means, with respect to any
Series 2001-1 Noteholder as of any date of determination: (A) prior to the
Conversion Date the excess of (i) the Class A Note Existing Commitment then in
effect for such Series 2001-1 Noteholder, over (ii) the Class A Note Principal
Balance of the Series 2001-1 Note owned by such Series 2001-1 Noteholder as of
such date of determination, measured after giving effect to all Class A Advances
made and all principal payments to be received by such Series 2001-1 Noteholder
on such date of determination and (B) on or subsequent to the Conversion Date,
zero.

                  "CLASS A NOTEHOLDER" means a Series 2001-1 Noteholder.

                  "CLOSING" means the time at which each of the conditions
precedent set forth in Article V of this Supplement shall have been duly
fulfilled or satisfied.

                  "CLOSING DATE" means the date on which Closing occurs.

                  "CODE" means the Internal Revenue Code of 1986, as amended, or
any successor statute thereto.

                  "COLLATERAL" shall have the meaning set forth in Section 101
of the Indenture.

                  "COLLECTION PERIOD" shall have the meaning set forth in
Section 101 of the Indenture.

                  "COMMERCIAL PAPER NOTE" shall mean short-term promissory notes
having a maturity of between 1 and 270 days.

                  "COMMITMENT FEE" shall have the meaning set forth in Section
205(d) hereof.

                  "COMMITMENT FEE PERCENTAGE" means, as of any date of
determination, one-half of one percent (0.50%) per annum.

                  "COMPRESSOR" shall have the meaning set forth in Section 101
of the Indenture.

                  "CONTRIBUTION AGREEMENT" means the Contribution Agreement,
dated as of February 9, 2001, between Universal and the Transferor, as such
agreement may be amended, modified or supplemented from time to time in
accordance with its terms.

                  "CONTRIBUTOR" shall have the meaning set forth in the
Contribution Agreement.

                  "CONTROL PARTY" has the meaning set forth in Section 402 of
this Supplement.

                                       4
<PAGE>   9

                  "CONVERSION DATE" means, with respect to Series 2001-1, the
earlier to occur of (x) the date on which a Trigger Event occurs and (y)
February 9, 2002, as the date in this clause (y) may be extended annually with
the prior written consent of all of the Holders of the Series 2001-1 Notes.

                  "CREDIT AND COLLECTION POLICY" means the credit and collection
policy of Universal initially specified in Exhibit C to the Management Agreement
and subsequently reported in accordance with the terms of the Management
Agreement.

                  "DEAL AGENT" means First Union Securities, Inc.

                  "DEFAULT INTEREST" means, for any Payment Date, the
incremental amount of interest payable on the Class A Notes in accordance with
the provisions of Section 203(b) hereof.

                  "DEFINITIVE NOTE" shall have the meaning set forth in Section
101 of the Indenture.

                  "DETERMINATION DATE" means the third Business Day prior to any
Payment Date.

                  "DOLLARS" and the sign "$" means lawful money of the United
States of America.

                  "EFFECTIVE DATE" means February 9, 2001.

                  "ELIGIBLE ACCOUNT" shall have the meaning set forth in Section
101 of the Indenture.

                  "EURODOLLAR DISRUPTION EVENT" means any of the following: (a)
a determination by a Class A Noteholder, the Liquidity Bank (or any of its
assignees or participants) or the Deal Agent that it would be contrary to law
(on any of its assignees or participants) or to the directive of any central
bank or other governmental authority (whether or not having the force of law) to
obtain Dollars in the London interbank market to make, fund or maintain any
Class A Advance for such Interest Accrual Period, (b) a determination by a Class
A Noteholder, the Liquidity Bank (or any of its assignees or participants) or
the Deal Agent that the rate at which deposits of Dollars are being offered to
such lender in the London interbank market does not accurately reflect the cost
to such Class A Noteholder or the Liquidity Bank (or any of its assignees or
participants) of making, funding or maintaining any Class A Advance for such
Interest Accrual Period, (c) the inability of a Class A Noteholder or the
Liquidity Bank (or any of its assignees or participants) to obtain Dollars in
the London interbank market to make, fund or maintain any Class A Advance for
such Interest Accrual Period or (d) any Liquidity Bank shall have notified the
Deal Agent of the inability, for any reason, of such Liquidity Bank or any of
its assignees or participants to determine the Adjusted Eurodollar Rate.

                  "EURODOLLAR RESERVE PERCENTAGE" means for any day in any
Interest Accrual Period (or, if more than one such percentage shall be so
applicable, the daily average of such percentages for those days in such period
during which any such percentage shall be so applicable), the reserve percentage
applicable on such day under regulations issued from time to time by the Federal
Reserve Board (or any successor) for determining the maximum reserve requirement
(including, without limitation, any emergency, supplemental or other marginal
reserve requirement) for FUNB, with

                                       5
<PAGE>   10

respect to liabilities or assets consisting of or including Eurocurrency
Liabilities (as defined in Regulation D of the Federal Reserve Board, as in
effect from time to time) and having a term equal to such Interest Accrual
Period.

                  "EVENT OF DEFAULT" means, with respect to any Series, the
occurrence of any of the events or conditions set forth in Section 801 of the
Indenture.

                  "FEDERAL FUNDS RATE" means for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted
average of the federal funds rates and confirmed in Federal Reserve Board
Statistical Release H.15 (519) or any successor or substitute publication
selected by FUNB (or, if such day is not a Business Day, for the next preceding
Business Day), or, if, for any reason, such rate is not available on any day,
the rate determined, in the sole opinion of FUNB, to be the rate at which
federal funds are being offered for sale in the national federal funds market at
9:00 a.m. (New York City time).

                  "FEDERAL RESERVE BOARD" means the Board of Governors of the
Federal Reserve System or any successor thereto.

                  "FUNB" means First Union National Bank.

                  "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" or "GAAP" shall
have the meaning set forth in Section 101 of the Indenture.

                  "GOVERNMENTAL AUTHORITY" shall have the meaning set forth in
Section 101 of the Indenture.

                  "HEAD LEASE" means the Master Equipment Lease Agreement, dated
as of February 9, 2001, by and between the Head Lessor and the Head Lessee, as
such agreement may be amended, modified or supplemented from time to time in
accordance with its terms.

                  "INCREASED COSTS" means any fee, expense or increased cost
charged to a Series 2001-1 Noteholder on account of the adoption of any
applicable law, rule or regulation (including any applicable law, rule, or
regulation regarding capital adequacy) or any change therein, or any change in
the interpretation or administration thereof by any Governmental Authority as
provided by Section 207 of this Supplement.

                  "INDEMNIFIED PARTY" shall have the meaning set forth in
Section 206(a) hereof.

                  "INDENTURE COMPLIANCE CERTIFICATE" means the certificate of
the Issuer given pursuant to Section 502(c) hereof.

                  "INDENTURE TRUSTEE" means the Person performing the duties of
the Indenture Trustee under the Indenture; initially, Wells Fargo Bank
Minnesota, National Association.

                  "INDEPENDENT DIRECTOR" shall have the meaning set forth in
Section 101 of the Indenture.

                                       6
<PAGE>   11

                  "INSOLVENCY LAW" means the Bankruptcy Code or similar
applicable law in any State or other applicable jurisdiction.

                  "INTEREST ACCRUAL PERIOD" means, with respect to a Payment
Date, the period beginning with, and including, the first day of the immediately
preceding calendar month and ending on and including the last of such calendar
month; except that, in the case of the first Interest Accrual Period for each
Class A Advance, the period beginning with and including the initial funding
date and ending on and including the last day of the calendar month immediately
preceding the initial Payment Date. If such period is associated with LIBOR Rate
fundings, the Interest Accrual Period shall be at the Deal Agent's discretion;
provided, however, that such period shall end not later than either the Payment
Date of the following month or the Payment Date of the second succeeding month

                  "INTEREST RATE SWAP AGREEMENT" shall have the meaning set
forth in Section 101 of the Indenture.

                  "ISSUER" BRL Universal Compression Funding I, L.P., a limited
partnership organized and existing under the laws of the State of Delaware, and
its successors and permitted assigns.

                  "LEASE" shall have the meaning set forth in Section 101 of the
Indenture.

                  "LEASE POOL" shall have the meaning set forth in the Head
Lease.

                  "LIBOR"  means the London Interbank Offered Rate.

                  "LIBOR RATE" means, for any day during any Interest Accrual
Period and any Class A Advance, an interest rate per annum equal to:

                  (i) to the extent that VFCC has funded the acquisition of, or
         maintenance of its investment in, the Class A Notes through the
         issuance of Commercial Paper Notes:

                      (a) the posted rate for 30-day deposits in United States
                   Dollars appearing on Telerate page 3750 as of 11:00 a.m.
                  (London time) at such time and on such day; or

                      (b)  if no such rate appears on Telerate page 3750 at
                  such time and on such day, then the LIBOR Rate shall be
                  determined by First Union at its principal office in
                  Charlotte, North Carolina as its rate (each such
                  determination, absent manifest error, to be conclusive and
                  binding on all parties hereto and their assignees) at which
                  30-day deposits in Dollars are being, have been, or would be
                  offered or quoted by First Union to major banks in the
                  applicable interbank market for Eurodollar deposits at or
                  about 11:00 a.m. (Charlotte, North Caroline time) on such day;
                  and

                                       7
<PAGE>   12

                  (ii) in all other case:

                      (a) the posted rate for 30-day deposits in United States
                  Dollars appearing on Telerate page 3750 as of 11:00 a.m.
                  (London time) at such time and on such day; or

                      (b) if no such rate appears on Telerate page 3750 at such
                  time and on such day, then the LIBOR Rate shall be determined
                  by First Union at its principal office in Charlotte, North
                  Carolina as its rate (each such determination, absent manifest
                  error, to be conclusive and binding on all parties hereto and
                  their assignees) at which 30-day deposits in Dollars are
                  being, have been, or would be offered or quoted by First Union
                  to major banks in the applicable interbank market for
                  Eurodollar deposits at or about 11:00 a.m. (Charlotte, North
                  Carolina time) on such day.

                  "LIEN" shall have the meaning set forth in Section 101 of the
Indenture.

                  "LIQUIDITY AGREEMENT" means the liquidity agreement, dated as
of February 9, 2001 among VFCC, the investors named therein, First Union
Securities, Inc. and FUNB, as such agreement shall be amended, modified or
supplemented from time to time in accordance with its terms.

                  "LIQUIDITY BANK" means FUNB, as the liquidity bank under the
Series 2001-1 Note Purchase Agreement, and its permitted successors and assigns.

                  "MAJORITY OF HOLDERS" means, with respect to the Series 2001-1
Notes, one or more Class A Noteholders representing more than fifty percent
(50%) of the then Aggregate Class A Note Principal Balance.

                  "MANAGEMENT AGREEMENT" means the management agreement, dated
as of February 9, 2000, among the Manager, the Head Lessee and the Head Lessor,
as such agreement shall be amended, supplemented or modified from time to time
in accordance with its terms.

                  "MANAGER" means the Person performing the duties of the
Manager under the Management Agreement; initially, Universal.

                  "MANAGER DEFAULT" means the occurrence of any of the events or
conditions set forth in Section 12.1 of the Management Agreement.

                  "MATERIAL ADVERSE CHANGE" shall have the meaning set forth in
Section 101 of the Indenture.

                  "NOTEHOLDER" or "HOLDER" shall have the meaning set forth in
Section 101 of the Indenture.

                  "NOTE REGISTER" shall have the meaning set forth in Section
101 of the Indenture.

                                       8
<PAGE>   13

                  "OTHER TAXES" shall have the meaning set forth in Section
206(b) of this Supplement.

                  "OUTSTANDING" shall have the meaning set forth in Section 101
of the Indenture.

                  "OVERDUE RATE" means, for any Determination Date, an interest
rate per annum equal to the sum of (i) the Base Rate then in effect plus (ii)
two percent (2%).

                  "PAYMENT DATE" shall have the meaning set forth in Section 201
hereof.

                  "PERCENTAGE" means, with respect to any Series 2001-1
Noteholder as of any date of determination, a fraction (expressed as a
percentage), the numerator of which is the Series 2001-1 Noteholder's Class A
Note Existing Commitment and the denominator of which is equal to the aggregate
Class A Note Existing Commitments of all Series 2001-1 Noteholders.

                  "PERSON" shall have the meaning set forth in Section 101 of
the Indenture.

                  "POTENTIAL TRIGGER EVENT" means any event or condition that,
with notice or the passage of time or both, could reasonably be expected to
constitute a Trigger Event.

                  "PREPAYMENTS" shall have the meaning set forth in Section 101
of the Indenture.

                  "PRIME RATE" means the interest rate per annum announced by
FUNB from time to time as its "prime rate" or "base rate" in the United States,
such rate to change as and when such designated rate changes. The Prime Rate is
not intended to be the lowest rate of interest charged by FUNB in connection
with extensions of credit to debtors.

                  "PRINCIPAL PAYMENT AMOUNT" shall have the meaning set forth in
the Indenture.

                  "RATING AGENCY" or "RATING AGENCIES" shall have the meaning
set forth in Section 101 of the Indenture.

                  "RATING AGENCY CONDITION" shall have the meaning set forth in
Section 101 of the Indenture.

                  "RECORD DATE" shall have the meaning set forth in Section 101
of the Indenture.

                  "REQUISITE GLOBAL MAJORITY" shall have the meaning set forth
in Section 101 of the Indenture.

                  "SALE AGREEMENT" means the Sale Agreement, dated as of
February 9, 2001, between UCO Compression LLC and the Issuer, as such agreement
may be amended, modified or supplemented from time to time in accordance with
its terms.

                  "SCHEDULED PRINCIPAL PAYMENT AMOUNT" means, for the Series
2001-1 Notes for any Payment Date, one of the following:

                                       9
<PAGE>   14

                  (1)   on any Payment Date prior to the expiration of a Term
                        of a Lease Pool, zero;

                  (2)   on the expiration date of a Term of a Lease Pool, an
                        amount determined in accordance with the following
                        formula:

                        ACNPB - CDDE   +   TPPA

where:

                        ACNPB = the sum of (i) Aggregate Class A Note Principal
                        Balance on such Termination Date and (ii) the unpaid
                        principal balance of the Capital on such Termination
                        Date; and

                        CDDE = the sum of (i) Aggregate Class A Note Principal
                        Balance on the Conversion Date and (ii) the unpaid
                        principal balance of the Capital on the Conversion Date;

                        TPPA = the sum of the Targeted Principal Payout Amounts
                        (determined on the Conversion Date) for all Lease Pools
                        (including the Lease Pool under consideration) whose
                        Term has expired or terminated on or prior to the
                        Termination Date under consideration.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended
from time to time.

                  "SELLER" means UCO Compression LLC, a limited liability
company organized and existing under the laws of the State of Delaware, and its
successors and permitted assigns.

                  "SENIOR CLASS PRIORITY PAYMENTS" shall have the meaning set
forth in Section 201 hereof.

                  "SERIES 2001-1" shall mean the Series of Notes the terms of
which are specified in this Supplement.

                  "SERIES 2001-1 FINAL MATURITY DATE" means the Payment Date
occurring in FEBRUARY 2009.

                  "SERIES 2001-1 INITIAL COMMITMENT" means $194,000,000.

                  "SERIES 2001-1 NOTEHOLDER" shall mean the Person in whose name
a Series 2001-1 Note is registered in the Note Register.

                  "SERIES 2001-1 NOTES" shall have the meaning set forth in
"CLASS A NOTE".

                  "SERIES 2001-1 NOTE PURCHASE AGREEMENT" means the Note
Purchase Agreement among the Issuer, VFCC and the Deal Agent, dated as of
February 9, 2001 pursuant to which VFCC agreed to purchase certain Series 2001-1
Notes.

                                       10
<PAGE>   15

                  "SERIES 2001-1 SERIES ACCOUNT" means the account established
by the Issuer in the name of the Indenture Trustee with the Indenture Trustee
into which funds are deposited from the Trust Account pursuant to Section 302 of
the Indenture.

                  "SERIES 2001-1 TRANSACTION DOCUMENTS" means any and all of the
Indenture, this Supplement, the Series 2001-1 Notes, the Management Agreement,
the Back-up Management Agreement, the Contribution Agreement, the Bill(s) of
Sale, the Representation and Warranty Agreement, the Sale Agreement, the Head
Lease, Head Lessee Security Agreement, the Series 2001-1 Note Purchase
Agreement, the Liquidity Agreement, the Interest Rate Swap Agreements, and any
and all other agreements, documents and instruments executed and delivered by or
on behalf or in support of the Issuer with respect to the issuance and sale of
the Series 2001-1 Notes, as any of the foregoing may from time to time be
amended, modified, supplemented or renewed.

                  "TARGETED PRINCIPAL PAYOUT AMOUNT" means an amount determined
for each Lease Pool on the Conversion Date equal to the product of (x) a
fraction the numerator of which is the Advance Rate for such Lease Pool and the
denominator of which is the sum of the Advance Rates for all Lease Pools in
effect on the Conversion Date and (y) the sum of (i) the Aggregate Class A Note
Principal Balance on the Conversion Date and (ii) the unpaid principal balance
of the Capital on the Conversion Date.

                  "TAXES" shall have the meaning set forth in Section 206(a) of
this Supplement.

                  "TERM" shall have the meaning set forth in Section 4 of the
Head Lease.

                  "TERMINATION DATE" shall have the meaning set forth in Section
1 of the Head Lease.

                  "TRANSFEROR" means UCO Compression LLC, a limited liability
company organized and existing under the laws of the State of Delaware.

                  "TRIGGER EVENT" shall have the meaning set forth in Section
101 of the Indenture.

                  "TRUST ACCOUNT" shall have the meaning set forth in Section
101 of the Indenture.

                  "UNIVERSAL" shall mean Universal Compression Inc., a Delaware
corporation, and its successor and permitted assigns.

                  "UNIVERSAL PARTY" means any one or more of the Issuer, the
Seller, the Lessee, the Transferor, the Contributor, the Manager or any
Affiliate of any of the foregoing.

                  "VFCC" means Variable Funding Capital Corporation, a Delaware
corporation, and its successors and assigns.

                  (b) Capitalized terms used herein and not otherwise defined
shall have the meaning set forth in the Indenture.

                                       11
<PAGE>   16

                                   ARTICLE II

                      Creation of the Series 2001-1 Notes

                  Section 201. Designation. There is hereby created a Series of
Notes to be issued in one Class pursuant to the Indenture and this Supplement to
be known respectively as "BRL Universal Compression Funding I, L.P. Floating
Rate Secured Notes, Series 2001-1". The Series 2001-1 Notes will be issued on
the Effective Date in the initial principal balance of up to $194,000,000 and
will not have priority over any Senior Class of any other Series, except to the
extent set forth in the Supplement for such other Series.

                  (a) The Payment Date with respect to the Series 2001-1 Notes
shall be the 15th day of each month, commencing March 15, 2001 or, if such day
is not a Business Day, the immediately following Business Day , so long as such
Business Day does not occur in the succeeding month or (ii) if the immediately
following Business Day would fall in the succeeding month, the Business Day
immediately preceding the fifteenth (15th) day of such month (each a "Payment
Date").

                  (b) The Series 2001-1 Notes shall be issued as Definitive
Notes, substantially in the form of Exhibit A hereto. The transfer restrictions
set forth in Section 202(i) and Section 205(g) and (h) of the Indenture shall
not be applicable to any transfer of the Note (or an interest therein) by VFCC
to the Liquidity Bank in accordance with the provisions of the Liquidity
Agreement.

                  (c) Payments of principal on the Series 2001-1 Notes shall be
payable from funds on deposit in the Series 2001-1 Series Account or otherwise
at the times and in the amounts set forth in Article III of the Indenture and
Article III of this Supplement.

                  (d) The Class A Note Interest Payment and the Commitment Fee
shall constitute "Senior Class Priority Payments", as such term is utilized in
the Indenture. The Scheduled Principal Payment Amount shall constitute the
"Principal Payment Amount" for Series 2001-1, as such term is utilized in the
Indenture.

                  (e) On the Closing Date, there is no Series Enhancer or
Enhancement Agreement applicable to the Series 2001-1 Notes. In addition, no
Rating Agencies have been designated for the Series 2001-1 Notes on the Closing
Date.

                  (f) In the event that any term or provision contained herein
shall conflict with or be inconsistent with any term or provision contained in
the Indenture, the terms and provisions of this Supplement shall govern.

                  Section 202. Authentication and Delivery.

                  (a) On the Effective Date, Issuer shall sign, and shall direct
the Indenture Trustee in writing pursuant to Section 201 of the Indenture to
duly authenticate, and the Indenture Trustee, upon receiving such direction, (i)
shall authenticate (by manual or facsimile signature), subject to compliance
with the conditions precedent set forth in Section 501 hereof and the Series
2001-1 Note

                                       12
<PAGE>   17

Purchase Agreement, the Series 2001-1 Notes in accordance with such written
directions, and (ii) subject to compliance with the conditions precedent set
forth in Section 501 hereof and the Series 2001-1 Note Purchase Agreement, shall
deliver such Series 2001-1 Notes to the Noteholders in accordance with such
written directions.

                  (b) In accordance with Section 202 of the Indenture, the Class
A Notes shall be represented by one or more Definitive Notes.

                  (c) The Series 2001-1 Notes shall be executed by manual or
facsimile signature by the Issuer and shall be substantially in the form of
Exhibit A hereto.

                  (d) The Series 2001-1 Notes shall be issued in minimum
denominations of $250,000 and in integral multiples of $100,000 in excess
thereof.

                  Section 203. Interest Payments on the Series 2001-1 Notes.

                  (a) Interest on Series 2001-1 Notes. Interest will be paid on
each Series 2001-1 Note in an amount equal to the Class A Note Interest Payment.
Such Class A Note Interest Payment shall be payable on each Payment Date from
amounts on deposit in the Series 2001-1 Series Account in accordance with
Section 302 of this Supplement. To the extent that the amount of interest which
is due and payable on any Payment Date is not paid in full on such date, such
shortfall, together with interest thereon at the interest rate applicable to
such Interest Accrual Period, shall be due and payable on the immediately
succeeding Payment Date.

                  (b) Interest on Overdue Amounts. If the Issuer shall default
in the payment when due of (i) the unpaid principal balance of any Series 2001-1
Notes on the Series 2001-1 Final Maturity Date, or (ii) the Class A Note
Interest Payment on any Series 2001-1 Note when due, or (iii) any other amount
becoming due under this Supplement, the Issuer shall, pursuant to Section 302
hereof, from time to time pay interest (the incremental interest payable in
excess of the interest otherwise payable, "Default Interest") on such unpaid
amounts, to the extent permitted by applicable law, to, but not including, the
date of actual payment (after as well as before judgment), at a rate per annum
equal to the Overdue Rate, for the period during which such principal, interest
or other amount shall be unpaid from the due date of such payment to the date of
actual payment thereof. Any such Default Interest shall be payable at the times
and subject to the priorities set forth in Section 302 of this Supplement.

                  Section 204. Principal Payments on the Series 2001-1 Notes. In
addition to any Prepayment required pursuant to the provisions of Section 204(b)
hereof, the principal balance of the Series 2001-1 Notes shall be payable on
each Payment Date from amounts on deposit in the Series 2001-1 Series Account in
an amount equal to the Scheduled Principal Payment Amount for such Payment Date.
The unpaid principal amount of the Series 2001-1 Notes together with all unpaid
interest (including all Default Interest), fees (including all Commitment Fees),
expense, costs and other amounts payable by the Issuer to the Series 2001-1
Noteholders and the Indenture Trustee

                                       13
<PAGE>   18

pursuant to the terms of the Indenture and this Supplement, shall be due and
payable in full on the earlier to occur of (x) the date on which an Event of
Default shall occur and the Series 2001-1 Notes have been accelerated in
accordance with Section 802 of the Indenture and (y) the Series 2001-1 Final
Maturity Date.

                  (a) So long as a Trigger Event is continuing, the principal
balance of the Series 2001-1 Notes shall be required to be prepaid at the times
and in the amounts set forth in Section 702(b) of the Indenture. In connection
with any Prepayment made in accordance with this Section 204(b), the Issuer
shall pay (i) any Breakage Costs assessed by the Deal Agent, on behalf of the
Class A Noteholders or the Liquidity Bank and (ii) any fees and costs assessed
by any Eligible Interest Rate Swap Counterparty.

                  (b) The Issuer may, on any Payment Date and upon three (3)
Business Days' prior notice (which notice shall be irrevocable when given),
voluntarily prepay the Class A Note Principal Balance after notice to the Series
2001-1 Noteholders in accordance with the terms of this Supplement, by making a
wire transfer to the Class A Noteholders; provided, however, that the Issuer may
not make such repayment from funds in the Trust Account or the Series 2001-1
Series Account, except to the extent that funds in any such account would be
otherwise be payable to the Issuer in accordance with the terms of this
Supplement. In connection with any Prepayment made in accordance with this
Section 204(b), the Issuer shall pay (i) any Breakage Costs assessed by the Deal
Agent, on behalf of the Class A Noteholders or the Liquidity Bank and (ii) any
fees and costs assessed by any Eligible Interest Rate Swap Counterparty.

                  Section 205. Amounts and Terms of Series 2001-1 Noteholder
Commitments.

                  (a) Commitments. Subject to the terms and conditions of this
Supplement and the Series 2001-1 Note Purchase Agreement, each Series 2001-1
Noteholder shall make its portion of the Series 2001-1 Initial Commitment
available to the Issuer on the Effective Date.

                  (b) Advances. Prior to the Conversion Date each Class A Note
shall be a revolving note with a maximum principal amount equal to the Class A
Note Existing Commitment then in effect for the related Series 2001-1
Noteholder. The Deal Agent shall maintain a record of all Class A Advances and
repayments made on the Series 2001-1 Notes and absent manifest error such
records shall be conclusive. On any two Business Days in any calendar month
requested by the Issuer and presuming that the Issuer shall have given three
Business Days' prior notice to the Deal Agent and shall have satisfied all
applicable conditions precedent set forth in Article V hereof, each Series
2001-1 Noteholder shall, subject to the terms and conditions of the Class A Note
Purchase Agreement, deposit with the account designated by the Issuer by wire
transfer of same day funds an amount equal to its Percentage of the requested
Class A Advance; provided, however, that, each Class A Advance by each Class A
Noteholder shall be for an amount (A) not less than the lesser of (x) its then
unused Class A Note Existing Commitment and (y) Five Million Dollars
($5,000,000) in the case of the first Class A Advance and thereafter Five
Hundred Thousand Dollars ($500,000), and (B) not greater than the Availability
of such Series 2001-1 Noteholder on such Business Day;

                                       14
<PAGE>   19

provided, further, that in the event that any Series 2001-1 Noteholder fails to
make a Class A Advance in accordance with its Class A Note Existing Commitment,
then the other Series 2001-1 Noteholder(s) shall not be obligated to fund the
Percentage of the defaulted Series 2001-1 Noteholder(s).

                  (c) Each request for a Class A Advance shall be submitted in
writing to the Deal Agent in the manner contemplated in Section 1207 of the
Indenture by not later than 1:00 p.m. (Charlotte, North Carolina time) on the
third Business Day prior to the date of the requested advance and shall be
irrevocable when given.

                  Each request for a Class A Advance shall constitute a
reaffirmation by Issuer that (1) no Event of Default, Manager Default or Trigger
Event has occurred and is continuing and (2) the representations and warranties
contained in the Series 2001-1 Transaction Documents are true, correct and
complete in all material respects to the same extent as though made on and as of
the date of the request, except to the extent such representations and
warranties specifically relate to an earlier date, in which event they shall be
true, correct and complete in all material respects as of such earlier date.

                  If (i) any Class A Advance requested by the Issuer is not made
or effectuated, for any reason whatsoever, related to a default or
nonperformance by the Issuer, on the date specified thereof or (ii) any optional
prepayment of the Series 2001-1 Notes is not made when specified in the notice
delivered pursuant to Section 702 of the Indenture, the Issuer shall indemnify
each Class A Noteholder against any reasonable loss, cost or expense directly
incurred by such Class A Noteholder (excluding any consequential or other
similar damages), including, without limitation, any loss (including loss of
anticipated profits, net of anticipated profits in the reemployment of such
funds in the manner determined by the Deal Agent), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Class A Noteholder (as determined by the Deal Agent) to fund or maintain
such Class A Advance, as the case may be, during such Interest Accrual Period
(all of the foregoing collectively, "Breakage Costs").

                  (d) On each Payment Date, the Issuer shall pay a commitment
fee (the "Commitment Fee") to each Class A Noteholder in an amount equal to the
product for each day during the immediately preceding Collection Period of (x)
the applicable Commitment Fee Percentage on such date, (y) a fraction (expressed
as percentage) the numerator of which is one and the denominator of which is
equal to the actual number of days in the applicable year and (z) the Class A
Note Unused Commitment of such Class A Noteholder on such date. Such Commitment
Fee shall be payable from amounts then on deposit in the Series 2001-1 Series
Account in accordance with Section 302 hereof.

                  (e) All payments of principal and interest on the Series
2001-1 Notes shall be paid to the Class A Noteholders reflected in the Note
Register as of the related Record Date by wire transfer of immediately available
funds for receipt prior to 11:00 a.m. (New York City time) on the related
Payment Date. Any payments received by a Class A Noteholder after 11:00 a.m.
(New York City time) on any day shall be considered to have been received on the
next succeeding Business Day.

                                       15
<PAGE>   20

                  (f) All payments received by the Deal Agent from the Issuer by
wire transfer of immediately available funds prior to 11:00 a.m. (New York City
time) on the related Payment Date shall be disbursed by the Deal Agent to the
Class A Noteholders or the Liquidity Bank by no later than 3:00 p.m. on such
Business Day. Any payments received by the Deal Agent after 11:00 a.m. (New York
City time) on any day shall be paid to the Class A Noteholders by 11:00 a.m. on
the next Business Day.

                  Section 206. Taxes.

                  (a) In addition to payments of principal and interest on the
Series 2001-1 Notes when due, the Issuer shall pay, but only in accordance with
the priorities for distributions set forth in Section 302 of this Supplement,
any and all present or future taxes, fees, duties, levies, imposts, or charges,
or any other similar deduction or withholding, whatsoever imposed by any
Governmental Authority, and all liabilities with respect thereto, excluding, in
the case of each Series 2001-1 Noteholder and any Person to whom a Series 2001-1
Noteholder has sold an interest in the Series 2001-1 Note, the Deal Agent and
any Liquidity Bank (such Series 2001-1 Noteholder and any such Person being an
"Indemnified Party"), such taxes as are imposed on or measured by each
Indemnified Party's net income by the jurisdiction under the laws of which such
Indemnified Party, as the case may be, is organized or maintains an office or
any political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities being hereinafter referred to
as "Taxes").

                  (b) In addition, the Issuer shall pay, subject to the
priorities set forth in Section 302, any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies which
arise from any payment made hereunder or from the execution, delivery or
registration of, or otherwise with respect to, this Supplement or any other
documents related to the issuance of the Series 2001-1 Notes except for any such
taxes due upon the transfer by a Class A Noteholder of its Series 2001-1 Notes
(hereinafter referred to as "Other Taxes").

                  (c) If any Taxes or Other Taxes are directly asserted or
imposed against any Indemnified Party, the Issuer shall indemnify and hold
harmless such Indemnified Party, subject to the priorities for distribution set
forth in Section 302, for the full amount of the Taxes or Other Taxes (including
any Taxes or Other Taxes asserted or imposed by any jurisdiction on amounts
payable under this Section 206) paid by the Indemnified Party and any liability
(including penalties, interest, additions to tax and expenses) arising therefrom
or with respect thereto, whether or not such Taxes or Other Taxes were correctly
or legally asserted or imposed. If the Issuer fails to pay any Taxes or Other
Taxes when due to the appropriate taxing authority or fails to remit to the
Indemnified Party the required receipts or other required documentary evidence,
the Issuer shall indemnify the Indemnified Party for any incremental Taxes or
Other Taxes, interest or penalties that may become payable by the Indemnified
Party as a result of any such failure. Payment under this indemnification shall
be made in accordance with the priorities for distributions set forth in Section
302 of this Supplement after the Indemnified Party makes written demand
therefor. Indemnified Party shall give prompt notice to Issuer of any assertion
of Taxes or Other Taxes so that Issuer may, at its option, contest such
assertion.

                                       16
<PAGE>   21

                  (d) Within thirty (30) days after the date of any payment by
the Issuer of Taxes or Other Taxes, the Issuer shall furnish to each of the
Series 2001-1 Noteholders the original or a certified copy of a receipt
evidencing payment thereof, or other evidence of payment satisfactory to the
Series 2001-1 Noteholders.

                  (e) Taxes and Other Taxes shall not constitute a claim against
the Issuer or the Collateral in the event such amounts are not paid in
accordance with Section 302 of this Supplement.

                  (f) On or before the date it acquires a Series 2001-1 Note
(and, so long as it may properly do so, periodically thereafter, as requested by
Issuer, to keep forms up to date), each Series 2001-1 Noteholder that is
organized under the laws of a jurisdiction outside the United States of America
hereby is deemed to have agreed by its acceptance of its Series 2001-1 Note to
deliver to the Indenture Trustee any certificates, documents or other evidence
that shall be required by the Code (or any regulations issued pursuant thereto)
to establish that, assuming the Series 2001-1 Notes are properly characterized
as indebtedness, it is exempt from existing United States Federal withholding
requirements, including two original copies of Internal Revenue Service Form
W-8BEN or Form W-8ECI or applicable successor form, properly completed and duly
executed by the Series 2001-1 Noteholder certifying that it is entitled to
receive payments under this Agreement without deduction or withholding of any
United States Federal income taxes (or at a reduced rate). If any Series 2001-1
Noteholder does not comply with the requirements of this Section 206(f), then
the amounts payable to such Series 2001-1 Noteholder pursuant to this Section
206 shall be limited to reflect such withholding. Any Person making a payment to
any Class A Noteholder of Class A Note Interest Payment, Scheduled Principal
Payment Amount or Commitment Fees shall be considered as having been paid by the
Issuer to the Series 2001-1 Noteholder for all purposes of this Supplement.

                  Section 207. Increased Costs; Capital Adequacy; Illegality.

                  (a) If either (i) the introduction of or any change
(including, without limitation, any change by way of imposition or increase of
reserve requirements) in or in the interpretation of any law or regulation or
(ii) the compliance by an Affected Party with any guideline or request from any
central bank or other Governmental Authority (whether or not having the force of
law), shall (A) subject an Affected Party to any Tax (except for Taxes on the
overall net income of such Affected Party), duty or other charge with respect to
Class A Note, or any right to make Class A Advance hereunder, or on any payment
made hereunder, (B) impose, modify or deem applicable any reserve requirement
(including, without limitation, any reserve requirement imposed by the Board of
Governors of the Federal Reserve System, but excluding any reserve requirement,
if any, included in the determination of the Adjusted Eurodollar Rate), special
deposit or similar requirement against assets of, deposits with or for the
amount of, or credit extended by, any Affected Party or (C) impose any other
condition affecting a Series 2001-1 Note or any Series 2001-1 Noteholder's
rights hereunder, the result of which is to increase the cost to any Affected
Party or to reduce the amount of any sum received or receivable by an Affected
Party under this Agreement, then within ten days after demand by such Affected
Party (which demand shall be accompanied by a statement setting forth the basis
for such demand), the Issuer shall pay directly to such Affected Party such
additional amount or amounts as will compensate such Affected Party for such
additional or increased cost incurred or such reduction suffered.

                                       17
<PAGE>   22

                  (b) If either (i) the introduction of or any change in or in
the interpretation of any law, guideline, rule, regulation, directive or request
or (ii) compliance by any Affected Party with any law, guideline, rule,
regulation, directive or request from any central bank or other Governmental
Authority (whether or not having the force of law), including, without
limitation, compliance by an Affected Party with any request or directive
regarding capital adequacy, has or would have the effect of reducing the rate of
return on the capital of any Affected Party as a consequence of its obligations
hereunder or arising in connection herewith to a level below that which any such
Affected Party could have achieved but for such introduction, change or
compliance (taking into consideration the policies of such Affected Party with
respect to capital adequacy) by an amount deemed by such Affected Party to be
material, then from time to time, within ten days after demand by such Affected
Party (which demand shall be accompanied by a statement setting forth the basis
for such demand), the Issuer shall pay directly to such Affected Party such
additional amount or amounts as will compensate such Affected Party for such
reduction.

                  (c) If as a result of any event or circumstance similar to
those described in clauses (a) or (b) of this section, any Affected Party is
required to compensate a bank or other financial institution providing liquidity
support, credit enhancement or other similar support to such Affected Party in
connection with this Agreement or the funding or maintenance of Purchases
hereunder, then within ten days after demand by such Affected Party, the Seller
shall pay to such Affected Party such additional amount or amounts as may be
necessary to reimburse such Affected Party for any amounts payable or paid by
it.

                  (d) In determining any amount provided for in this section,
the Affected Party may use any reasonable averaging and attribution methods. Any
Affected Party making a claim under this section shall submit to the Issuer and
the Manager a written description as to such additional or increased cost or
reduction and the calculation thereof, which written description shall be
conclusive absent demonstrable error.

                  (e) If a Liquidity Bank shall notify the Deal Agent that a
Eurodollar Disruption Event as described in clause (a) of the definition of
"Eurodollar Disruption Event" has occurred, the Deal Agent shall in turn so
notify the Issuer, whereupon all Class A Advances in respect of which Class A
Note Interest Payment accrues at the Adjusted Eurodollar Rate shall immediately
be converted into a Class A Advance in respect of which interest accrues at the
Base Rate.

                  (f) Any amounts payable by the Issuer pursuant to this Section
207 shall be paid in accordance with the provisions of Section 302 hereof and
shall not constitute a claim against the Issuer or the Collateral in the event
that such amounts are not paid in accordance with Section 302 of this
Supplement.

                                       18
<PAGE>   23

                                    ARTICLE III

                        Series 2001-1 Series Account and
                 Allocation and Application of Amounts Therein

                  Section 301. Series 2001-1 Series Account. The Issuer shall
establish on the Closing Date and maintain in the name of the Indenture Trustee,
so long as any Series 2001-1 Note is Outstanding, an Eligible Account at Wells
Fargo Bank Minnesota, National Association which shall be designated as the
Series 2001-1 Series Account, which account shall be held by the Indenture
Trustee for the benefit of the Series 2001-1 Noteholders pursuant to the
Indenture and this Supplement. All deposits of funds by or for the benefit of
the Series 2001-1 Noteholders from the Trust Account shall be accumulated in,
and withdrawn from, the Series 2001-1 Series Account in accordance with the
provisions of the Indenture and this Supplement.

                  Section 302. Distributions from Series 2001-1 Series Account .
On each Payment Date, the Indenture Trustee shall distribute funds then on
deposit in the Series 2001-1 Series Account in accordance with the priorities
set forth below:

                      (i)   To each Holder of a Series 2001-1 Note on the
                  immediately preceding Record Date, an amount equal to the
                  Class A Note Interest Payment (exclusive of Default Interest)
                  payable to such Series 2001-1 Noteholders for such Payment
                  Date;

                      (ii)  To each Holder of a Series 2001-1 Note on the
                  immediately preceding Record Date, an amount equal to the
                  Commitment Fee payable to such Series 2001-1 Noteholders for
                  such Payment Date;

                      (iii) To each Holder of a Series 2001-1 Note on the
                  immediately preceding Record Date, an amount equal to its pro
                  rata portion of the Scheduled Principal Payment Amount then
                  due and payable to Series 2001-1 on such Payment Date;

                      (iv)  To each Holder of a Series 2001-1 Note on the
                  immediately preceding Record Date, an amount equal to its pro
                  rata portion of any principal Prepayment then due and payable
                  to Series 2001-1 on such Payment Date;

                      (v)   To each Holder of a Series 2001-1 Note, pro rata,
                  an amount equal to Taxes, Other Taxes, Increased Costs,
                  Breakage Costs, indemnities and other amounts (including
                  Default Interest) then due and payable by the Issuer to the
                  Series 2001-1 Noteholders pursuant to the Series 2001-1
                  Transaction Documents; and

                      (vi)  After application of the amounts required to be
                  paid pursuant to Section 302 of the Indenture, to the Issuer,
                  any remaining amounts then on deposit in the Series 2001-1
                  Series Account.

                                       19
<PAGE>   24

                                   ARTICLE IV

                              Additional Covenants

                  In addition to the covenants set forth in Article VI of the
Indenture, the Issuer hereby makes the following additional covenants for the
benefit of the Series 2001-1 Noteholders:

                  Section 401. Additional Series. The Issuer shall not issue any
additional Series of Notes on or after the Closing Date without (a) the Rating
Agency Condition (if any Series of Notes are then rated by a Rating Agency, (b)
confirmation, in writing, that the unpaid principal balances of all Series of
Notes then Outstanding do not exceed the Asset Base, as evidenced by the Asset
Base Certificate most recently received by the Indenture Trustee (dated not
earlier than the preceding Payment Date), (c) receipt of a certificate from an
officer of the Issuer stating that no Trigger Event, Manager Default or Event of
Default has occurred and is then continuing or would result from the issuance of
such new Series and (d) the Deal Agent shall have given its prior written
consent.

                  Section 402. Control Party. For purposes of determining a
Requisite Global Majority pursuant to Section 503 of the Indenture, the Control
Party of Series 2001-1 shall mean the Majority of Holders of the Series 2001-1
Notes then Outstanding.

                  Section 403. Rule 144A. So long as any of the Series 2001-1
Notes are "restricted securities" within the meaning of Rule 144(a)(3) under the
Securities Act, Issuer shall, unless it becomes subject to and complies with the
reporting requirements of Section 13 or 15(d) of the Exchange Act, or Rule
12g3-2(b) thereunder, provide to any Series 2001-1 Noteholder of such restricted
securities, or to any prospective Series 2001-1 Noteholder of such restricted
securities designated by a Series 2001-1 Noteholder, upon the request of such
Noteholder or prospective Series 2001-1 Noteholders, any information required to
be provided by Rule 144A(d)(4) under the Securities Act.

                  Section 404. Use of Proceeds. The proceeds from the issuance
of the Series 2001-1 Notes shall be used to purchase certain Head Lessor
Compressors and for general corporate purposes.

                  Section 405. Allocation of Prepayments. So long as Series
2001-1 is the only Series Outstanding, all principal Prepayments permitted or
required pursuant to Section 702 of the Indenture shall be allocated solely to
Series 2001-1.

                                       20
<PAGE>   25

                                    ARTICLE V

                 Conditions of Effectiveness and Future Lending

                  Section 501. Effectiveness of Supplement. The effectiveness of
this Supplement is subject to the condition precedent that the Indenture Trustee
shall have received all of the following, each duly executed and dated as of the
Closing Date, in form and substance satisfactory to each of the Series 2001-1
Noteholders and each (except for the Series 2001-1 Notes, of which only the
originals shall be signed) in sufficient number of signed counterparts to
provide one for each Series 2001-1 Noteholder (notwithstanding the satisfaction
of the conditions precedent, upon the making of a Class A Advance hereunder, all
of Indenture Trustee's rights under this Agreement (and by operation of law)
shall vest in the Indenture Trustee, whether or not the conditions precedent to
such Advance were in fact satisfied):

                  (a) Series 2001-1 Notes. Separate Series 2001-1 Notes executed
by the Issuer in favor of each Series 2001-1 Noteholder in the aggregate stated
principal amount of such Series 2001-1 Notes that such Noteholder has agreed to
purchase.

                  (b) Certificate(s) of Secretary or Assistant Secretary.
Separate certificates executed by the corporate secretary or assistant secretary
of each Universal Party, each dated the Closing Date, certifying (i) that the
respective company has the authority to execute and deliver, and perform its
respective obligations under each of the Series 2001-1 Transaction Documents to
which it is a party, and (ii) that attached are true, correct and complete
copies of the organic documents, authorizations and incumbency certificates in
form and substance satisfactory to the Series 2001-1 Noteholders, as to such
matters as they shall require.

                  (c) Security Documents. The Indenture and this Supplement, in
form and substance satisfactory to the Series 2001-1 Noteholders, the Indenture
Trustee and the Deal Agent, shall have been executed and delivered by Issuer,
and all other parties thereto, together with all Uniform Commercial Code
financing statements and other documents reasonably requested by Series 2001-1
Noteholders Indenture Trustee or the Deal Agreement.

                  (d) Opinions of Counsel. Opinions of Counsel to the Issuer, as
to perfection and priority of the Indenture Trustee's security interest in the
Collateral, and from counsel to the Issuer, Contributor, the Head Lessee and
Manager, in form and in substance satisfactory to the Series 2001-1 Noteholders,
as to true sale, non-consolidation and any other such matters as they shall
require.

                  (e) Series 2001-1 Transaction Documents. Each of the Series
2001-1 Transaction Documents shall have been duly executed and delivered and all
of the conditions precedent therein have either been satisfied or waived by the
Deal Agent.

                  (f) Insurance. The Indenture Trustee shall have received
certificates evidencing insurance coverage in respect of the Compressors, which
shall be reasonably satisfactory to the Indenture Trustee, as additional loss
payee.

                                       21
<PAGE>   26

                  (g) Up Front Fee. The Issuer shall have paid, or made
arrangements for payment satisfactory to the Deal Agent for, the up front fee
set forth in the letter agreement, dated as of the Closing Date between the
Issuer and First Union Securities, Inc.

                  (h) Limited Partnership Interests. Variable Funding Capital
Corporation and First Union Investors shall have purchased the limited
partnership interests in the Issuer.

                  (i) Merger. Universal Compression, Inc. and Weatherford
Industries shall have consummated their merger.

                  (j) [Reserved]

                  (k) Ratings of Universal's High Yield Debt. Universal's high
yield debt issued contemporaneously with the execution and delivery of this
Series 2001-1 Supplement is rated "BB-" or higher by S&P and "Ba3" by Moody's.

                  (l) Credit and Collection Policy. The Issuer shall have
delivered to the Deal Agent two (2) copies of Universal's Credit and Collection
Policy.

                  (m) Issuer Certificate An officer's certificate certifying
that all of the conditions set forth in clauses (a) through (l) above have been
satisfied.

                  Section 502. Advances on Series 2001-1 Notes. The obligation
of each of the Series 2001-1 Noteholders to make a Class A Advance pursuant to
its commitment under this Supplement and the Series 2001-1 Note Purchase
Agreement is subject to the following further conditions precedent being
fulfilled with respect to each such Class A Advance:

                  (a) Default. Before and after giving effect to such Class A
Advance, no Event of Default or Manager Default shall have occurred and be
continuing.

                  (b) Trigger Event. Before and after giving effect to such
Class A Advance, no Trigger Event or Potential Trigger Event shall have occurred
and be continuing unless such Class A Advance has been approved by each of (i)
the Requisite Global Majority and (ii) each Series 2001-1 Noteholder.

                  (c) Certification. Issuer shall have delivered to the Deal
Agent a compliance certificate, signed by a financial officer of Issuer stating
that (i) each of the conditions precedent set forth in this Section 502 and in
the Series 2001-1 Note Purchase Agreement have been satisfied with respect to
such Class A Advance and (ii) that all of the representations and warranties of
the Issuer contained in each Series 2001-1 Transaction Document is true and
correct in all material respects as of the date of such Class A Advance.

                  (d) Asset Base Certificate. Issuer shall have delivered to the
Deal Agent a duly completed and executed Asset Base Certificate, determined
after giving effect to any Eligible Compressors to be acquired with the proceeds
of such Class A Advance, which demonstrates that, after giving effect to such
Class A Advance, (A) the sum of (i) the Aggregate Class A Note Principal

                                       22
<PAGE>   27

Balances and (ii) the then unpaid Capital does not exceed the Asset Base, (B) no
Net Revenue Event exists or would exist, or (C) no Overcollateralization Event
exists or would exist.

                  (e) Conversion Date. The Conversion Date shall not have
occurred.

                  (f) Issuer Certificate An officer's certificate certifying
that all of the conditions set forth in paragraphs (a) through (e) of this
Section 502 have been satisfied.

                                       23
<PAGE>   28

                                   ARTICLE VI

                         Representations and Warranties

                  To induce the Series 2001-1 Noteholders to purchase the Series
2001-1 Notes hereunder, the Issuer hereby represents and warrants (as of the
Effective Date and each date on which a Class A Advance is made) to the
Indenture Trustee for the benefit of the Series 2001-1 Noteholders that:

                  Section 601 Existence. Issuer is a Delaware limited
partnership duly formed and validly existing and is duly qualified to do
business in each jurisdiction where the failure to do so would have a material
adverse effect upon the Issuer.

                  Section 602. Authorization. Issuer has the partnership power
and is duly authorized to execute and deliver this Supplement and the other
Series 2001-1 Transaction Documents to which it is a party; Issuer is and will
continue to be duly authorized to borrow monies hereunder; and Issuer is and
will continue to be authorized to perform its obligations under this Supplement
and under the other Series 2001-1 Transaction Documents. The execution, delivery
and performance by Issuer of this Supplement and the other Series 2001-1
Transaction Documents to which it is a party and the borrowings hereunder do not
and will not require any consent or approval of any Governmental Authority,
partner or any other Person which has not already been obtained.

                  Section 603. No Conflict; Legal Compliance. The execution,
delivery and performance of this Supplement and each of the other Series 2001-1
Transaction Documents and the execution, delivery and payment of the Series
2001-1 Notes will not: (a) contravene any provision of Issuer's partnership
agreement; (b) contravene, conflict with or violate any applicable law or
regulation, or any order, writ, judgment, injunction, decree, determination or
award of any Governmental Authority that could result in a Material Adverse
Change; or (c) violate or result in the breach of, or constitute a default under
the Indenture, the Series 2001-1 Transaction Documents, any other indenture or
other loan or credit agreement, or other agreement or instrument to which Issuer
is a party or by which Issuer, or its property and assets may be bound or
affected that could result in a Material Adverse Change. Issuer is not in
violation or breach of or default under any law, rule, regulation, order, writ,
judgment, injunction, decree, determination or award or any contract, agreement,
lease, license, indenture or other instrument to which it is a party that could
result in a Material Adverse Change.

                  Section 604. Validity and Binding Effect. This Supplement is,
and each Series 2001-1 Transaction Document to which Issuer is a party, when
duly executed and delivered, will be, legal, valid and binding obligations of
Issuer, enforceable against Issuer in accordance with their respective terms,
except as enforceability may be limited by bankruptcy, insolvency or other
similar laws of general application affecting the enforcement of creditors'
rights or by general principles of equity limiting the availability of equitable
remedies.

                  Section 605. Financial Statements. Since September 30, 2000,
there has been no Material Adverse Change in the financial condition of any
Universal Party.

                                       24
<PAGE>   29

                  Section 606. Executive Offices. The current location of
Issuer's chief executive office and principal place of business is 2911 Turtle
Creek Boulevard, Suite 1240, Dallas, Texas 75219.

                  Section 607. No Agreements or Contracts. The Issuer is not now
and has not been a party to any contract or agreement (whether written or oral)
other than the Series 2001-1 Transaction Documents.

                  Section 608. Consents and Approvals. No approval,
authorization or consent of any trustee or holder of any Indebtedness or
obligation of Issuer or of any other Person under any agreement, contract, lease
or license or similar document or instrument to which Issuer is a party or by
which Issuer is bound, is required to be obtained by Issuer in order to make or
consummate the transactions contemplated under the Series 2001-1 Transaction
Documents, except for those approvals, authorizations and consents that have
been obtained on or prior to the Effective Date. All consents and approvals of,
filings and registrations with, and other actions in respect of, all
Governmental Authorities required to be obtained by Issuer in order to make or
consummate the transactions contemplated under the Series 2001-1 Transaction
Documents have been, or prior to the time when required will have been,
obtained, given, filed or taken and are or will be in full force and effect, or
due provision has been made therefor reasonably acceptable to the Indenture
Trustee and the Majority of Holders.

                  Section 609. Margin Regulations. Issuer does not own any
"margin security", as that term is defined in Regulation U of the Federal
Reserve Board, and the proceeds of the Series 2001-1 Notes issued under this
Supplement will be used only for the purposes contemplated hereunder. None of
the proceeds of the Series 2001-1 Notes will be used, directly or indirectly,
for the purpose of purchasing or carrying any margin security, for the purpose
of reducing or retiring any indebtedness which was originally incurred to
purchase or carry any margin security or for any other purpose which might cause
any of the loans under this Supplement to be considered a "purpose credit"
within the meaning of Regulations T, U and X. Issuer will not take or permit any
agent acting on its behalf to take any action which might cause this Supplement
or any document or instrument delivered pursuant hereto to violate any
regulation of the Federal Reserve Board.

                  Section 610. Taxes. All federal, state, local and foreign tax
returns, reports and statements required to be filed by Issuer have been filed
with the appropriate Governmental Authorities, and all Taxes, Other Taxes and
other impositions shown thereon to be due and payable by Issuer have been paid
prior to the date on which any fine, penalty, interest or late charge may be
added thereto for nonpayment thereof, or any such fine, penalty, interest, late
charge or loss has been paid, or Issuer is contesting its liability therefor in
good faith and has fully reserved all such amounts according to GAAP in the
financial statements provided to the Noteholders pursuant to Section 626 of the
Indenture. Issuer has paid when due and payable all material charges upon the
books of Issuer and no Governmental Authority has asserted any Lien against
Issuer with respect to unpaid Taxes or Other Taxes. Proper and accurate amounts
have been withheld by Issuer from its employees for all periods in full and
complete compliance with the tax, social security and unemployment withholding
provisions of applicable federal, state, local and foreign law and such
withholdings have been timely paid to the respective Governmental Authorities.

                                       25
<PAGE>   30

                  Section 611. Other Regulations. Issuer is not: (a) a "public
utility company" or a "holding company," or an "affiliate" or a "Subsidiary
company" of a "holding company," or an "affiliate" of such a "Subsidiary
company," as such terms are defined in the Public Utility Holding Company Act of
1935, as amended, or (b) an "investment company," or an "affiliated person" of,
or a "promoter" or "principal underwriter" for, an "investment company," as such
terms are defined in the Investment Company Act of 1940, as amended. The
issuance of the Series 2001-1 Notes hereunder and the application of the
proceeds and repayment thereof by Issuer and the performance of the transactions
contemplated by this Supplement and the other Series 2001-1 Transaction
Documents will not violate any provision of the Investment Company Act or the
Public Utility Holding Company Act, or any rule, regulation or order issued by
the Securities and Exchange Commission thereunder.

                  Section 612. Solvency and Separateness.

                      (i)  The capital of the Issuer is adequate for the
                  business and undertakings of the Issuer;

                      (ii) Other than with respect to the transactions
                  contemplated by the Series 2001-1 Transaction Documents, the
                  Issuer is not engaged in any business transactions with any
                  Universal Party;

                      (iii) A majority of the directors of a general partner
                  of the Issuer are Independent Directors;

                      (iv)  The Issuer's funds and assets are not, and will not
                  be, commingled with those of any Universal Party, except as
                  permitted by the Management Agreement;

                      (v)   The partnership agreement of the Issuer requires it
                  to maintain correct and complete books and records of account;
                  and

                      (vi)  The Issuer is not insolvent under the Insolvency
                  Law and will not be rendered insolvent by the transactions
                  contemplated by the Series 2001-1 Transaction Documents and
                  after giving effect to such transactions, the Issuer will not
                  be left with an unreasonably small amount of capital with
                  which to engage in its business nor will the Issuer have
                  intended to incur, or believe that it has incurred, debts
                  beyond its ability to pay such debts as they mature. The
                  Issuer does not contemplate the commencement of insolvency,
                  bankruptcy, liquidation or consolidation proceedings or the
                  appointment of a receiver, liquidator, trustee or similar
                  official in respect of the Issuer or any of its assets.

                  Section 613. Survival of Representations and Warranties. So
long as any of the Series 2001-1 Notes shall be Outstanding and until payment
and performance in full of the Obligations, the representations and warranties
contained herein shall have a continuing effect as having been true when made.

                                       26
<PAGE>   31

                  Section 614. No Default. No Event of Default, Manager Default
or Trigger Event has occurred and is continuing and no event has occurred that
with the passage of time would become an Event of Default, Manager Default or
Trigger Event.

                  Section 615. Litigation and Contingent Liabilities. No claims,
litigation, arbitration proceedings or governmental proceedings by any
Governmental Authority are pending or threatened against or are affecting the
Issuer or any of its Affiliates the results of which might interfere with the
consummation of any of the transactions contemplated by this Supplement or any
document issued or delivered in connection herewith.

                  Section 616. Title; Liens. Issuer has good, legal and
marketable title to each of its respective assets, and none of such assets is
subject to any Lien, except for the Lien created or permitted pursuant to the
Indenture.

                  Section 617. Subsidiaries.  Issuer has had no subsidiaries.

                  Section 618. No Partnership. Issuer is not a partner or joint
venturer in any partnership or joint venture.

                                       27
<PAGE>   32

                                   ARTICLE VII

                            Miscellaneous Provisions

                  Section 701. Ratification of Indenture. As supplemented by
this Supplement, the Indenture is in all respects ratified and confirmed and the
Indenture as so supplemented by this Supplement shall be read, taken and
construed as one and the same instrument.

                  Section 702. Counterparts. This Supplement may be executed in
two or more counterparts, and by different parties on separate counterparts,
each of which shall be an original, but all of which shall constitute one and
the same instrument.

                  Section 703. Governing Law. THIS SUPPLEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAWS BUT OTHERWISE WITHOUT REFERENCE TO ITS CONFLICTS
OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                  Section 704. Statutory References. References in this
Supplement and any other Series 2001-1 Transaction Document to any section of
the Uniform Commercial Code or the UCC shall mean, on or after the effective
date of adoption of any revision to the Uniform Commercial Code or the UCC in
the applicable jurisdiction, such revised or successor section thereto.

                                       28
<PAGE>   33

                  IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have
caused this Supplement to be duly executed and delivered by their respective
officers all as of the day and year first above written.

                                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
                                             ----------------------------------

                                       WELLS FARGO BANK MINNESOTA, NATIONAL
                                       ASSOCIATION, not in its individual
                                       capacity, but solely as Indenture Trustee

                                       By:   /s/ MARIANNA C. STERSHIC
                                          -------------------------------------

                                       Name:     Marianna C. Stershic
                                            -----------------------------------

                                       Title:    Vice President
                                             ----------------------------------

<PAGE>   34
                                                                   EXHIBIT A

                              FORM OF CLASS A NOTE

                  THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF
ANY OTHER JURISDICTION. THIS NOTE MAY NOT BE OFFERED FOR SALE, TRANSFER OR
ASSIGNMENT UNLESS (1) SO REGISTERED OR THE TRANSACTION RELATING THERETO SHALL BE
EXEMPT WITHIN THE MEANING OF SUCH ACT AND THE RULES AND REGULATIONS OF THE
SECURITIES AND EXCHANGE COMMISSION ADOPTED THEREUNDER AND (2) SUCH TRANSACTION
COMPLIES WITH THE PROVISIONS SET FORTH IN SECTION 205 OF THE INDENTURE. BECAUSE
OF THE PROVISIONS FOR THE PAYMENT OF PRINCIPAL CONTAINED HEREIN, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF. ANYONE PURCHASING THIS NOTE MAY ASCERTAIN THE OUTSTANDING PRINCIPAL
AMOUNT HEREOF BY INQUIRY TO THE INDENTURE TRUSTEE.

EACH PURCHASER OF A CLASS A NOTE SHALL BE DEEMED TO REPRESENT AND WARRANT TO THE
INITIAL PURCHASER, THE ISSUER, THE INDENTURE TRUSTEE AND THE MANAGER THAT EITHER
(1) IT IS NOT ACQUIRING A CLASS A NOTE WITH THE ASSETS OF AN "EMPLOYEE BENEFIT
PLAN" AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974, AS AMENDED, OR A "PLAN" WITHIN THE MEANING OF SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986; OR (2) THE ACQUISITION AND HOLDING OF A CLASS A
NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER SECTION
406(a) OF ERISA OR SECTION 4975 OF THE CODE.

             BRL UNIVERSAL COMPRESSION FUNDING I, L.P. SECURED NOTE
                             SERIES 2001-1, CLASS A

Up to $194,000,000                                                        No. 1
                                                               February 9, 2001

                  KNOW ALL PERSONS BY THESE PRESENTS that BRL UNIVERSAL
COMPRESSION FUNDING I, L.P., a Delaware limited partnership (the "Issuer"), for
value received, hereby promises to pay to First Union Securities Inc., as agent
for Variable Funding Capital Corporation and the related purchasers, or their
registered assigns, at the principal corporate trust office of the Indenture
Trustee named below, (i) the principal sum of up to One Hundred Ninety-Four
Million Dollars ($194,000,000), which sum shall be payable on the dates and in
the amounts set forth in the Indenture, dated as of February 9, 2001 (as
amended, restated or otherwise modified from time to time, the "Indenture") and
the Series 2001-1 Supplement, dated as of February 9, 2001 (as amended, restated
or otherwise modified from time to time, the "Series 2001-1 Supplement"), each
between the Issuer and Wells Fargo Bank Minnesota, National Association as
indenture trustee

<PAGE>   35
(the "Indenture Trustee"), (ii) interest on the outstanding principal amount of
this Class A Note on the dates and in the amounts set forth in the Indenture and
the Series 2001-1 Supplement and (iii) the other amounts required to be paid
pursuant to the Indenture and the Series 2000-1 Supplement. A record of each
Class A Advance, Prepayment and repayment shall be made by the Deal Agent and
absent manifest error such record shall be conclusive. Capitalized terms not
otherwise defined herein will have the meaning set forth in the Indenture and
the Series 2001-1 Supplement.

                  Payment of the principal of and interest on this Class A Note
shall be made in lawful money of the United States of America which at the time
of payment is legal tender for payment of public and private debts. The
principal balance of, and interest on this Class A Note is payable at the times
and in the amounts set forth in the Indenture and the 2001-1 Supplement by wire
transfer of immediately available funds to the account designated by the Holder
of record on the immediately preceding Record Date.

                  This Class A Note is one of the authorized notes identified in
the title hereto and issued in the aggregate principal amount of up to One
Hundred Ninety-Four Million Dollars ($194,000,000.00) pursuant to the Indenture
and the Series 2001-1 Supplement.

                  The Class A Notes shall be an obligation of the Issuer and
shall be secured by the Collateral, all as defined in, and subject to the
limitations set forth in, the Indenture and the Series 2001-1 Supplement.

                  This Class A Note is transferable as provided in the Indenture
and the Series 2001-1 Supplement, subject to certain limitations therein
contained, only upon the books for registration and transfer kept by the
Indenture Trustee, and only upon surrender of this Class A Note for transfer to
the Indenture Trustee duly endorsed by, or accompanied by a written instrument
of transfer in form reasonably satisfactory to the Indenture Trustee duly
executed by the registered Holder hereof or his attorney duly authorized in
writing. The Indenture Trustee or the Issuer may require payment by the Holder
of a sum sufficient to cover any tax expense or other governmental charge
payable in connection with any transfer or exchange of the Class A Notes.

                  The Issuer, the Indenture Trustee and any other agent of the
Issuer may treat the person in whose name this Class A Note is registered as the
absolute owner hereof for all purposes, and neither the Issuer, the Indenture
Trustee, nor any other such agent shall be affected by notice to the contrary.

                  The Class A Notes are subject to Prepayment, at the times and
subject to the conditions set forth in the Indenture and the Series 2001-1
Supplement.

                  If an Event of Default shall occur and be continuing, the
principal of and accrued interest on this Class A Note may be declared to be due
and payable in the manner and with the effect provided in the Indenture and the
Series 2001-1 Supplement.

                  The Indenture permits, with certain exceptions as therein
provided, the issuance of supplemental indentures with the consent of the
Requisite Global Majority, in certain specifically described instances. Any
consent given by the Requisite Global Majority shall be conclusive and

                                      A-2
<PAGE>   36

binding upon the Holder of this Class A Note and on all future holders of this
Class A Note and of any Class A Note issued in lieu hereof whether or not
notation of such consent is made upon this Class A Note. Supplements and
amendments to the Indenture and the Series 2001-1 Supplement may be made only to
the extent and in circumstances permitted by the Indenture and the Series 2001-1
Supplement.

                  The Holder of this Class A Note shall have no right to enforce
the provisions of the Indenture and the Series 2001-1 Supplement or to institute
action to enforce the covenants, or to take any action with respect to a default
under the Indenture and the Series 2001-1 Supplement, or to institute, appear in
or defend any suit or other proceedings with respect thereto, except as provided
under certain circumstances described in the Indenture and the Series 2001-1
Supplement; provided, however, that nothing contained in the Indenture and the
Series 2001-1 Supplement shall affect or impair any right of enforcement
conferred on the Holder hereof to enforce any payment of the principal of and
interest on this Class A Note on or after the due date thereof; provided
further, however, that by acceptance hereof the Holder is deemed to have
covenanted and agreed that it will not institute against the Issuer any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any applicable bankruptcy or similar law, at any time
other than at such time as permitted by Section 1211 of the Indenture and the
Series 2001-1 Supplement.

                  Each purchaser of a Class A Note shall be deemed to represent
and warrant to the Initial Purchaser, the Issuer, the Indenture Trustee and the
Manager that either (1) it is not acquiring a Class A Note with the assets of an
"Employee Benefit Plan" as Defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as Amended, or a "Plan" Within the Meaning of
Section 4975 of the Internal Revenue Code of 1986; or (2) the acquisition and
holding of a Class A Note will not give rise to a nonexempt prohibited
transaction under Section 406(a) of ERISA or Section 4975 of the Code.

                  This Class A Note, and the rights and obligations of the
parties hereunder, shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New York without giving effect to its
conflicts of law principles.

                  All terms and provisions of the Indenture and the Series
2001-1 Supplement are herein incorporated by reference as if set forth herein in
their entirety.

                  IT IS HEREBY CERTIFIED, RECITED AND DECLARED, that all acts,
conditions and things required to exist, happen and be performed precedent to
the execution and delivery of the Indenture and the Series 2001-1 Supplement and
the issuance of this Class A Note and the issue of which it is a part, do exist,
have happened and have been timely performed in regular form and manner as
required by law.

                  Unless the certificate of authentication hereon has been
executed by the Indenture Trustee by manual signature of one of its authorized
officers, this Class A Note shall not be entitled to any benefit under the
Indenture and the Series 2001-1 Supplement, or be valid or obligatory for any
purpose.

                                      A-3
<PAGE>   37
                  IN WITNESS WHEREOF, BRL Universal Compression Funding L.P. has
caused this Class A Note to be duly executed by its duly authorized
representative, on this _____ day of February, 2001.

                                BRL UNIVERSAL COMPRESSION
                                   FUNDING I, L.P.

                                By: BRL COMPRESSION MANAGEMENT,
                                    INC. its general partner

                                By: ___________________________________

                                Its:___________________________________

                  This Note is one of the Class A Notes described in the
within-mentioned Indenture and the Series 2001-1 Supplement.

                         WELLS FARGO BANK MINNESOTA, N. A.

                         By: ____________________________________

                         Its: ___________________________________<PAGE>   1
                                                                   EXHIBIT 10.2

                           EQUIPMENT LEASE AGREEMENT

                                     between

                      BRL UNIVERSAL EQUIPMENT 2001 A, L.P.,
                                    as Lessor

                                       and

                          UNIVERSAL COMPRESSION, INC.,
                                    as Lessee

                          Dated as of February 9 , 2001

               --------------------------------------------------
                           UNIVERSAL COMPRESSION, INC.
                                  AS LESSEE OF
                                  $427,000,000
                          OF GAS COMPRESSION EQUIPMENT
               --------------------------------------------------

              TO THE EXTENT, IF ANY, THAT THIS DOCUMENT CONSTITUTES
                CHATTEL PAPER UNDER THE UNIFORM COMMERCIAL CODE,
              NO SECURITY INTEREST IN THIS DOCUMENT MAY BE CREATED
                   THROUGH THE TRANSFER AND POSSESSION OF ANY
                    COUNTERPART OTHER THAN COUNTERPART NO. 1.

                 COUNTERPART NO._____ OF _____ SERIALLY NUMBERED
                         MANUALLY EXECUTED COUNTERPARTS.

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----

<S>                                                                                                            <C>
1.       Definitions..............................................................................................1

2.       Agreement for Leasing of Equipment; Quiet Enjoyment......................................................1

3.       Conditions Precedent.....................................................................................1

4.       Delivery, Acceptance and Leasing of Equipment............................................................1

5.       Term.....................................................................................................2

6.       Return of Equipment......................................................................................2

         6.1      Redelivery......................................................................................2
         6.2      Storage.........................................................................................3
         6.3      Timely Redelivery; Deemed Purchase Option.......................................................3
         6.4      Specific Performance............................................................................4

7.       Payments.................................................................................................4

         7.1      Rent Payment....................................................................................4
                  7.1.1    Semi-Annual Payment....................................................................4
                  7.1.2    Floating Lease Payment.................................................................4
         7.2      Supplemental Payments...........................................................................4
         7.3      Method of Payment...............................................................................4
         7.4      Notification of Lease Payments..................................................................5
         7.5      Prepayments Limited.............................................................................5

8.       Net Lease Agreement......................................................................................5

9.       Grant of Security Interest; Equipment to be and Remain Personal Property.................................6

10.      Use of Equipment; Compliance with Laws...................................................................7

11.      Maintenance and Repair of Equipment; Filing of Reports...................................................8

12.      Alterations..............................................................................................9

13.      Substitutions of Equipment...............................................................................9

14.      Appraisals..............................................................................................11

15.      Identification Marks....................................................................................11

16.      Inspection..............................................................................................11
</TABLE>

                                      (i)

<PAGE>   3

<TABLE>
<S>                                                                                                             <C>
17.      Assignment and Subleasing...............................................................................11

18.      Liens...................................................................................................13

19.      Loss, Damage or Destruction.............................................................................13

         19.1     Risk of Loss, Damage or Destruction............................................................13
         19.2     Replacement of Equipment Upon an Event of Loss.................................................13
         19.3     Application of Payments Not Relating to an Event of Loss.......................................14

20.      Insurance...............................................................................................14

21.      NO LESSOR WARRANTIES....................................................................................15

22.      Assignment of Manufacturer Warranties...................................................................16

23.      Events of Default.......................................................................................16

24.      Remedies Upon Default...................................................................................18

25.      Lessor's Right to Perform for Lessee....................................................................19

26.      Late Charges............................................................................................20

27.      Notices.................................................................................................20

28.      Lessee's Renewal, Transfer and Early Termination Options; Purchase Obligation...........................20

         28.1     Renewal Option.................................................................................20
         28.2     Lessee's End of Term Purchase Option...........................................................20
         28.3     Third Party Sale or Redelivery of Equipment....................................................21
                  28.3.1   Notice to Remarket or Return Possession of Equipment..................................21
                  28.3.2   Remarketing Obligations...............................................................21
                  28.3.3   Sale of Equipment to Third Party Buyer................................................22
         28.4     Lessee's Early Purchase Options and Obligations................................................22

29.      End of Term Lease Payment Adjustment....................................................................24

         29.1     Third Party Sale of Equipment..................................................................24
         29.2     Lessee Payment.................................................................................24
         29.3     Lessor Payment.................................................................................25
         29.4     Excess Wear Lease Payment Adjustment...........................................................25

30.      GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL..................................25

31.      Miscellaneous...........................................................................................26

32.      Registration............................................................................................27

33.      Execution and Effectiveness.............................................................................27
</TABLE>

                                      (ii)

<PAGE>   4

<TABLE>
<CAPTION>

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EXHIBIT A.........[Form of] Lease Supplement
EXHIBIT B.........[Form of] Notice of Substitution
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                                     (iii)
<PAGE>   5

         EQUIPMENT LEASE AGREEMENT dated as of February 9, 2001 (this "Lease
Agreement"), between BRL UNIVERSAL EQUIPMENT 2001 A, L.P., a Delaware limited
partnership ("Lessor") and UNIVERSAL COMPRESSION, inc., a Texas corporation
("Lessee").

         In consideration of the mutual covenants and agreements set forth
herein and in the Participation Agreement of even date hereof (the
"Participation Agreement") among Lessee, Universal Compression Holdings, Inc.,
as Guarantor, Lessor, The Bank of New York, not in its individual capacity but
for the benefit of Tranche A Noteholders, Bankers Trust Company, and the other
financial institutions that may become party thereto, as Tranche B Lenders, BRL
Universal Equipment Management, Inc., as Lessor General Partner, Bankers Trust
Company as Administrative Agent and Bankers Trust Company as Collateral Agent,
the parties hereto agree as follows:

         1. Definitions. Unless the context otherwise requires, capitalized
terms used herein and not otherwise defined herein shall have meanings set forth
or referred to in Appendix A to the Participation Agreement which Appendix A
also contains the rules of usage that shall apply hereto.

         2. Agreement for Leasing of Equipment; Quiet Enjoyment. Subject to, and
upon all of the terms and conditions of this Lease Agreement, Lessor hereby
agrees to lease to Lessee and Lessee hereby agrees to lease from Lessor the
Items of Equipment for the Term. Lessor agrees that so long as no Lease Event of
Default has occurred and is continuing, it shall not take or cause to be taken
or authorize any Person to take any action (except for the creation of
Collateral Agent Liens), contrary to or interfering with Lessee's or any
Sublessee's right to peaceful possession, use and quiet enjoyment of each Item
of Equipment without any interference, hindrance, ejection or molestation
whatsoever; provided, however, nothing in this Section 2 shall prevent Lessor
and its Assignee from exercising their inspection rights in accordance with
Section 16. Additionally, during the Term with respect to each Item of
Equipment, unless a Lease Event of Default shall exist and Lessee's rights to
use such Item of Equipment shall have been terminated pursuant to the terms of
this Lease Agreement, Lessee shall, except to the extent otherwise expressly
provided in the Operative Documents, be entitled to (i) receive, enjoy,
distribute and otherwise dispose of the income, royalties, payments, recoveries
and other proceeds with respect to (or included as a part of) such Item without
the consent or joinder of Lessor and (ii) otherwise utilize, license, consign,
substitute, sublease and maintain such Item in a manner consistent with the
provisions of the Operative Documents including, without limitation, of Sections
5, 10, 11, 12, 13, 17 and 22.

         3. Conditions Precedent. Lessor shall have no obligation to lease any
Item of Equipment to Lessee unless each of the conditions set forth in Section 3
of the Participation Agreement are fulfilled to the satisfaction of, or waived
by, Lessor.

         4. Delivery, Acceptance and Leasing of Equipment. Lessor shall not be
liable to Lessee for any failure or delay in the delivery of any Item of
Equipment to Lessee. Forthwith upon delivery of each Item of Equipment to
Lessee, Lessee shall evidence its acceptance of such Item of Equipment hereunder
and of the condition of such Item of Equipment by executing and

<PAGE>   6

delivering to Lessor a Lease Supplement for such Item, dated the Closing Date.
THE EXECUTION BY LESSOR AND LESSEE OF A LEASE SUPPLEMENT FOR AN ITEM OF
EQUIPMENT SHALL (i) EVIDENCE THAT SUCH ITEM IS LEASED UNDER, AND IS SUBJECT TO
ALL OF THE TERMS, PROVISIONS AND CONDITIONS OF, THIS LEASE AGREEMENT, AND (ii)
CONSTITUTE LESSEE'S UNCONDITIONAL AND IRREVOCABLE ACCEPTANCE OF SUCH ITEM FOR
ALL PURPOSES OF THIS LEASE AGREEMENT.

         5. Term. The Term for each Item of Equipment shall commence on the
Closing Date, and, unless this Lease Agreement is sooner terminated with respect
to such Item of Equipment or all Items of Equipment pursuant to the provisions
hereof, shall end on the Termination Date.

         6. Return of Equipment.

                  6.1 Redelivery.

                  (a) On or before the date of the expiration or earlier
termination of the Term with respect to each Item of Equipment (unless Lessee
has exercised its transfer option with respect thereto pursuant to Section 28.2
or 28.4; or a third party sale thereof acceptable to Lessor is consummated on
the Termination Date with respect thereto pursuant to Section 28.3 or Lessee is
required to purchase such Item of Equipment), Lessee will, at its expense,
dismantle (to the extent necessary to ship such Item of Equipment), surrender
and deliver possession of each Item of Equipment to Lessor at the Redelivery
Location with (i) a certificate executed by a Responsible Officer of Lessee
certifying that (A) Lessee has used best efforts to maintain for each Item of
Equipment being redelivered all plans, specifications and operating, maintenance
and repair manuals prepared or reviewed by Lessee or any of its Affiliates and
(B) such Item of Equipment is in the condition required hereunder, (ii) a copy
of an inventory list for each Item and (iii) all then current plans,
specifications and operating, maintenance, and repair manuals and logs relating
to such Item that have been retained by Lessee or any of its Affiliates, and
(iv) with respect to any Item of Equipment which qualifies for or is subject to
any manufacturer's maintenance, repair or warranty policy, (A) if such
manufacturer is Lessee or an affiliate thereof, Lessee shall cause such
manufacturer to deliver to Lessor a statement or certificate that has been
signed by an authorized representative of the manufacturer attesting to the
availability of such maintenance, repair or warranty policy and (B) if the
manufacturer is not Lessee nor an affiliate of Lessee and generally provides its
customers upon request a statement or certificate attesting to the availability
of such maintenance, repair or warranty policy, then Lessee shall utilize
reasonable efforts to obtain from such manufacturer such a statement or
certificate.

                  (b) At the time of such return to Lessor, each Item of
Equipment (and each part or component thereof) shall (i) meet the original
design specifications and operating standards of such Item, (ii) be in as good
operating condition, state of repair and appearance as when delivered to Lessee
hereunder, and shall not have been subjected to excess wear and tear; provided,
that ordinary wear and tear as a result of normal and customary usage is
excepted; and provided, further that "ordinary wear and tear" as used herein
shall not be construed as permitting any material broken, damaged or missing
items or components of any Item of Equipment such that its value, utility,
Residual Value or remaining useful life will be reduced, (iii) be in the
condition required by Section 11 and with respect to any Item of Equipment that
qualifies for or

                                       -2-
<PAGE>   7

is subject to any manufacturer's maintenance, repair or warranty policy, such
Item shall have been maintained and repaired in a manner consistent with such
policy, (iv) have no missing or damaged components such that its value, utility,
Residual Value or remaining useful life will be reduced, (v) comply with all
laws and rules referred to in Sections 10 and 11, (vi) have attached or affixed
thereto any addition, modification or improvement considered an accession
thereto as provided in Section 12 and (vii) have had removed therefrom in a
workmanlike manner, (x) at Lessor's option, any addition, modification or
improvement which, as provided in Section 12, is owned by Lessee, and (y) any
insignia or marking, and each Item of Equipment (and each part or component
thereof), shall be free and clear of all Liens, other than Lessor Liens and
Collateral Agent Liens.

                  (c) All operating licenses and agreements pertinent to the
operation of each Item of Equipment, (other than non-transferable licenses to
use software), that are capable of being transferred, shall be fully
transferable upon the expiration of the Term to Lessor or its designee. Lessee
shall transfer any such transferable license or agreement upon return of the
Item of Equipment at Lessee's cost and expense.

                  (d) Each Item of Equipment that qualifies for or is subject to
any manufacturer's maintenance, repair or warranty policy must be properly
deinstalled in a manner consistent with such policy and in such a way that the
Item remains eligible for or subject to such policy, as appropriate, and Lessee
shall provide a certificate from a Responsible Officer certifying that each Item
of Equipment was deinstalled in a manner consistent with such policy and remains
eligible for or subject to such policy, as appropriate. Upon deinstallation,
each Item of Equipment shall be secured properly for air or overland or other
suitable transport. Each Item of Equipment shall be delivered to the Redelivery
Location in the manner in which is customary for such Item of Equipment.

                  (e) Lessee shall, at its own expense, make repairs necessary
to restore each Item of Equipment to the condition required by this Section 6.1
prior to redelivery hereunder.

                  (f) Upon redelivery, Lessee shall provide any additional
documentation reasonably requested by Lessor and reasonably available to Lessee,
at Lessee's cost, relating to the redelivery of or Lessee's interest in each
Item of Equipment.

                  6.2 Storage. For the purpose of delivering possession of any
Item of Equipment to Lessor as above required, Lessee shall at its own cost,
expense and risk cause each such Item of Equipment to be insured in accordance
with Section 20 and stored at the Redelivery Location identified by Lessor at
the risk of Lessee without charge to Lessor for insurance, rent or storage until
all such Items of Equipment have been sold, leased or otherwise disposed of by
Lessor; provided, however, Lessee's obligations under this Section 6.2 shall
terminate with respect to each Item of Equipment one (1) year after the required
date of delivery of such Item to the Redelivery Location in the condition
required by Section 6.1.

                  6.3 Timely Redelivery; Deemed Purchase Option. If Lessee has
not timely satisfied the obligations and conditions set forth in Section 6.1
with respect to the redelivery of each and every Item of Equipment, then Lessee
shall be deemed to have exercised the purchase

                                      -3-
<PAGE>   8

option set forth in Section 28.2 and Lessee shall pay to Lessor the Purchase
Option Amount with respect to all Items of Equipment.

                  6.4 Specific Performance. The provisions of this Section 6 are
of the essence of this Lease Agreement, and the parties hereto agree that Lessor
shall be entitled to specific performance of the covenants of Lessee set forth
in this Section 6.

         7. Payments.

                  7.1 Rent Payment.

                           7.1.1 Semi-Annual Payment.  Lessee hereby agrees to
pay Lessor for each Item of Equipment in arrears on each Semi-Annual Payment
Date for such Item during the Term, an amount equal to the interest accrued on
the Tranche A Component for such Item under the terms of the Tranche A Notes
(and if the Tranche A Notes have been paid or Lessor's obligations thereunder
otherwise discharged prior to the Termination Date, the amount of interest that
would have accrued had the Tranche A Notes not been so paid or otherwise
discharged). Amounts due on a Semi-Annual Payment Date under this Section 7.1.1
shall be calculated on a 30/360 day basis.

                           7.1.2 Floating Lease Payment. Lessee hereby agrees
to pay Lessor for each Item of Equipment in arrears on each Floating Payment
Date during the Term, in an amount equal to the sum of (i) the interest accrued
on the Tranche B Component for such Item under the terms of the Tranche B Loan
Agreement (and if the Tranche B Loans have been repaid or Lessor's obligations
thereunder otherwise discharged prior to the Termination Date, the amount of
interest that would have accrued had the Tranche B Loans not been so paid or
otherwise discharged) (ii) the Equity Yield accrued on the Equity Component for
such Item in accordance with the terms of the Limited Partnership Agreement and
(iii) an amount equal to yield accrued on the Acquisition Cost for such Item at
the rate per annum set forth in the Lessor Margin Letter. Amounts due on a
Floating Payment Date under this Section 7.1.2 shall be calculated for each day
(from and including the first day of such Floating Payment Period to but
excluding the last day of such Floating Payment Period) elapsed during the
Floating Payment Period then ending.

                  7.2 Supplemental Payments. Each Supplemental Payment shall be
due and Lessee agrees to pay to Lessor, or to whomever shall be entitled thereto
as expressly provided herein or in the other Operative Documents, all
Supplemental Payments which are due from Lessee, when such payments are
specified to be paid pursuant to the terms of the Operative Documents, or if not
so specified, within five (5) Business Days of written demand therefor.

                  7.3 Method of Payment. All payments of Lease Payments and
Supplemental Payments required to be made by Lessee to Lessor (or, in the case
of Supplemental Payments, any other Person entitled thereto) shall be made in
lawful money of the United States of America in immediately available funds no
later than 1:00 p.m. (New York time) on the date due to such account as shall be
designated by Lessor or any Assignee. All payments received after 1:00 p.m. (New
York time) shall be deemed received on the next Business Day. Subject to the
assignment set forth in Section 7 of the Participation Agreement, all payments
of Lease Payments required to

                                      -4-
<PAGE>   9

be made by Lessee to Lessor hereunder shall be paid at the address or bank
account as Lessor may hereafter designate in writing to Lessee no less than
three (3) Business Day before the date such payments are due.

                  7.4 Notification of Lease Payments. At least two (2) Business
Days before each Floating Payment Date, Lessor or its designee shall advise
Lessee of the total amount of any Floating Lease Payment due on such Payment
Date. Lessor hereby designates Administrative Agent to so advise Lessee for so
long as the Tranche B Loans remain outstanding. No failure on the part of Lessor
or its designee to provide a notice under this Section 7.4 shall release Lessee
of any obligation to make a payment in accordance herewith; provided, however,
no Lease Default shall occur with respect to any Floating Lease Payment and no
interest at the Overdue Rate shall accrue with respect to any non-payment of
such amount until the later of the date such payment is due and the date two (2)
Business Days after such notice is given.

                  7.5 Prepayments Limited. Except as may otherwise be provided
in this Lease Agreement, no Lease Payments or portion thereof may be prepaid.

         8. Net Lease Agreement. This Lease Agreement is a net lease agreement.
Lessee acknowledges and agrees that its obligations hereunder, including,
without limitation, its obligations to pay Lease Payments and all Supplemental
Payments payable hereunder, shall be unconditional and irrevocable under any and
all circumstances, shall not be subject to cancellation, termination,
modification or repudiation by Lessee, and shall be paid and performed by Lessee
(with respect to payments under Sections 7.1.1, 28.2, 28.4 and 29.2, without
notice or demand and with respect to any Floating Lease Payment or payment under
Section 29.1 without demand) and without any abatement, reduction, diminution,
setoff, defense (other than prior payment), counterclaim or recoupment
whatsoever, including, without limitation, any abatement, reduction, diminution,
setoff, defense (other than prior payment), counterclaim, withholding or
recoupment due or alleged to be due to, or by reason of, any past, present or
future claims which Lessee may have against Lessor, Indenture Trustee, any
Tranche A Noteholder, any Tranche B Lender, any Limited Partner, Lessor General
Partner, Collateral Agent, Administrative Agent, any Assignee, any sublessee or
assignee of Lessee, any manufacturer or supplier of any Item of Equipment or any
part thereof, or any other Person for any reason whatsoever, or any defect in
any Item of Equipment or any part thereof, or the condition, design, operation
or fitness for use thereof, any damage to, or any loss or destruction of, any
Item of Equipment or any part thereof, or any Liens or rights of others with
respect to any Item of Equipment or any part thereof, or any default or failure
to pay by any sublessee or assignee of Lessee, or any prohibition or
interruption of or other restriction against Lessee's use, operation,
possession, maintenance, insurance, improvement or return of any Item of
Equipment thereof, for any reason whatsoever, or any interference with such use,
operation or possession by any Person, or any default by Lessor in the
performance of any of its obligations herein contained, or any other
indebtedness or liability, howsoever and whenever arising, of Lessor, Indenture
Trustee, any Tranche A Noteholder, any Tranche B Lender, any Limited Partner,
Lessor General Partner, Collateral Agent, Administrative Agent, any Assignee,
any sublessee or assignee of

                                      -5-
<PAGE>   10

Lessee, any other Person, or by reason of insolvency, bankruptcy or similar
proceedings by or against Lessor, Indenture Trustee, any Tranche A Noteholder,
any Tranche B Lender, any Limited Partner, Lessor General Partner, Collateral
Agent, Administrative Agent, any Assignee, Lessee, any sublessee or assignee of
Lessee, or any other Person, or for any other reason whatsoever, whether similar
or dissimilar to any of the foregoing, any present or future laws to the
contrary notwithstanding; it being the intention of the parties hereto that all
Lease Payments and Supplemental Payments payable by Lessee shall continue to be
payable in all events and in the manner and at the times herein provided, unless
the obligation to pay the same shall be terminated pursuant to the express
provisions of this Lease Agreement. Nothing contained in this Section 8 shall
(i) affect any claim, action or right that Lessee may have against Lessor or any
other Person, including pursuant to Section 2 nor (ii) be considered as (x) a
guaranty of the fair market value or useful life of any Item upon the
commencement, expiration or termination of the Term with respect to an Item, (y)
a prohibition of assertion of any claim against any manufacturer, supplier,
dealer, vendor, contractor, subcontractor or installer with respect to any Item
or any part thereof or (z) a waiver by Lessee of any of its express rights under
any of the Operative Documents or of its right to assert and sue upon any claims
it may have against any Person in one or more separate actions.

         9. Grant of Security Interest; Equipment to be and Remain Personal
Property. This Lease Agreement is a financing agreement intended as security.
Lessee hereby grants, bargains, assigns, transfers, conveys and pledges to
Lessor a security interest in and Lien upon all of its rights, title and
interest in, to and under the Equipment, the subleases related to such
Equipment, Lessee's interest in any bill of sale and in each manufacturer's,
vendor's or dealer's warranty for the Equipment, and all proceeds thereof,
including, without limitation, all rentals, income and profits in respect of the
Items of Equipment, whether under such subleases or otherwise, all credits
granted by any manufacturer, vendor or dealer with respect to the return of any
Item of Equipment and the proceeds of any insurance payable with respect to the
Items of Equipment (the "Lessee Collateral") as collateral security for the
payment and performance by Lessee of obligations owed to Lessor under the
Operative Documents. For each Item of Equipment, Lessee will, at its own
expense, make, execute, endorse, acknowledge, file and/or deliver to Lessor from
time to time such confirmatory assignments, conveyances, financing and
continuation statements, transfer endorsements, powers of attorney, notes,
reports and other assurances or instruments and take such further actions which
Lessor or Assignee may reasonably request to perfect, preserve or protect
Lessor's security interest granted hereunder or which Lessor reasonably deems
necessary or advisable in order to obtain the full benefits of the Liens created
or intended to be created hereunder, and will take such other actions reasonably
requested by Lessor or Assignee to effectuate the intent of the Operative
Documents. To the extent permitted by Applicable Law, Lessee authorizes Lessor
and Assignee to file any such financing and continuation statements without the
signature of Lessee. Lessee will pay all applicable filing fees and related
expenses incurred in accordance with this Section 9. Within the six-month period
preceding the fifth anniversary of the filing of any UCC personal property
financing statements, Lessee will provide to Lessor continuation statements with
respect to the UCC financing statements filed in connection herewith, will file
the same in accordance with Applicable Law, and promptly upon such filing will
provide Lessor with written evidence thereof.

                  Lessee irrevocably authorizes Lessor and does hereby make,
constitute and appoint Lessor and any officer of Lessor, with full power of
substitution, as Lessee's true and lawful attorney-in-fact, with power, in its
own name or in the name of Lessee, to endorse any notes, checks, drafts, money
orders, or other instruments of payment (including payments payable under or in
respect of any policy of insurance) in respect of Lessee Collateral that may

                                      -6-

<PAGE>   11

come into possession of Lessor; to sign and endorse any invoice, freight or
express bill, bill of lading, storage or warehouse receipts, drafts against
debtors, assignments, verifications and notices in connection with accounts, and
other documents relating to Lessee Collateral; to pay or discharge Taxes, Liens,
security interests or other encumbrances at any time levied or placed on or
threatened against Lessee Collateral; to demand, collect, receipt for,
compromise, settle and sue for moneys due in respect of Lessee Collateral; and
generally, to do, at Lessor's option and at Lessee's expense, at any time, or
from time to time, all acts and things which Lessor deems necessary to protect,
preserve and realize upon Lessee's Collateral and Lessor's security interests
therein and in order to effect the intent of the Operative Documents all as
fully and effectually as Lessee might or could do; and Lessee hereby ratifies
all that said attorney shall lawfully do or cause to be done by virtue hereof;
provided, however that Lessor agrees not to exercise any such power unless a
Lease Event of Default has occurred and is continuing. This power of attorney
shall be coupled with an interest and irrevocable for the term of this Agreement
and thereafter as long as any of the obligations of Lessee under any Operative
Documents shall be outstanding. The powers conferred on Lessor hereunder are
solely to protect its interest in Lessee Collateral and shall not impose any
duty upon Lessor to exercise any such powers. Lessor shall be accountable only
for amounts that it actually receives as a result of the exercise of such powers
and neither it nor any of its partners nor the officers, directors or employees
of the Lessor General Partner shall be responsible to Lessee for any act or
failure to act, except for its own gross negligence or willful misconduct.

                  It is the intention and understanding of both Lessor and
Lessee, that Lessee shall take all such actions as may be required to assure,
that the Equipment shall be and at all times remain personal property,
notwithstanding the manner in which the Equipment may be attached or affixed to
realty.

         10. Use of Equipment; Compliance with Laws.

         (a) Lessee agrees that each Item of Equipment will be used and operated
in compliance with any and all insurance policy terms, conditions and provisions
referenced in the Operative Documents and in all material respects with all
statutes, laws, ordinances, rules and regulations of any federal, national,
state or local governmental body, agency or authority applicable to the use and
operation of such Item of Equipment, including, without limitation,
environmental, noise and pollution laws (including notifications and reports),
and that each Item of Equipment will be used and operated solely in the manner
for which it was intended and in accordance with the license or certificate, if
any, provided by the manufacturer thereof.

         (b) Lessee agrees that no Item of Equipment shall be used by Lessee
other than in the subleasing of such Item to Lessee's customers.

         (c) Lessee agrees that no Item of Equipment shall be used or located at
a location other than a State within the United States; provided however an Item
of Equipment may be used or located in a United States territory if a perfected
first priority security interest can be created with respect to such Item by the
filing of Financing Statements.

                                      -7-
<PAGE>   12

         (d) Lessee shall use reasonable precautions to prevent loss or damage
to each Item of Equipment from fire and other hazards. Lessee shall not permit
any Item of Equipment to be moved from its location as of the Closing Date
therefor unless it has, at its own expense, made, executed, endorsed,
acknowledged, filed and/or delivered to Lessor such confirmatory assignments,
conveyances, financing and continuation statements, transfer endorsements, or
other assurances or instruments necessary to perfect, preserve and protect
Lessor's security interest in such Item of Equipment.

         (e) Lessee shall not permit any Item of Equipment to be used in any
unlawful trade or in any manner that would violate in any material respect any
law that would expose such Item of Equipment to penalty, forfeiture or capture.

         (f) Lessee shall not attach or incorporate any Item of Equipment to or
in any other item of equipment or other personal property or to or in any real
property in a manner that could give rise to the assertion of any Lien on such
Item of Equipment by reason of such attachment or the assertion of a claim that
such Item of Equipment has become a fixture and is subject to a Lien or claim of
ownership in favor of a third party.

         11. Maintenance and Repair of Equipment; Filing of Reports.

         (a) Lessee, at its sole cost and expense, shall maintain (or caused to
be maintained) each Item of Equipment (i) in a manner consistent with the Lessee
Maintenance Practices, so as to keep each Item in good condition (ordinary wear
and tear excepted), (ii) in all material respects in compliance with Applicable
Law, (iii) in compliance with the manufacturer's maintenance standards and
procedures, (iv) in all respects in compliance with the insurance applicable to
such Items of Equipment and subject, however, to the provisions of Section 19
with respect to Loss, Damage or Destruction and (v) in compliance in all
material respects with environmental laws.

         (b) Lessee at its sole cost and expense shall maintain all records,
logs and other materials required by any Governmental Entity having jurisdiction
over any Item of Equipment or Lessee to be maintained in respect of such Item of
Equipment.

         (c) Lessee shall not change the Lessee Maintenance Practices in any
manner that would diminish the value or Residual Value of any Item of Equipment
in any material respect.

         (d) Lessee hereby waives any right now or hereafter conferred by law to
make repairs on the Equipment at the expense of Lessor.

         (e) Lessee agrees to prepare and deliver to Lessor and any Assignee
within a reasonable time prior to the required date of filing (or, to the extent
permissible, file on behalf of Lessor and any Assignee) any and all reports
(other than income tax returns) to be filed by Lessor or any Assignee with any
federal, national, state or other regulatory authority by reason of the
ownership by Lessor or any Assignee of any Item of Equipment or the leasing
thereof to Lessee to the extent any such reports are required because of the
nature of the Equipment.

                                      -8-
<PAGE>   13

         12. Alterations.

         (a) Except as required or permitted by the provisions of this Section
12, Lessee shall not modify an Item of Equipment without the prior written
authority and approval of Lessor.

         (b) In case any Item of Equipment (or any equipment, part or appliance
therein) is required to be altered, added to, replaced or modified in order to
comply with any insurance policies required pursuant to this Lease Agreement or
Applicable Law ("Required Alteration"), Lessee agrees to make such Required
Alteration at its own expense and the same shall, without further act,
immediately be and become the property of, and title shall vest in, Lessor free
and clear of all Liens other than Lessor Liens and Permitted Liens and subject
to the terms of this Lease Agreement. Any parts installed or replacements made
by Lessee upon any Item of Equipment pursuant to its obligation to maintain and
keep the Equipment in good and serviceable operating condition and repair under
Section 11 shall be considered accessions to such Item of Equipment and
ownership thereof or security interest therein shall be immediately vested in
Lessor.

         (c) Lessee may make any optional renovation, improvement, addition, or
alteration to any Item of Equipment ("Optional Alteration") provided that with
respect to each Item of Equipment such Optional Alteration does not impair the
value, use or remaining useful life of such Item of Equipment. In the event an
Optional Alteration is readily removable without impairing the value, use or
remaining useful life of the Item of Equipment, and is not a part, item of
equipment or appliance which replaces any part, item of equipment or appliance
originally incorporated or installed in or attached to such Item of Equipment on
the Closing Date or any part, item of equipment or appliance in replacement of
or substitution for any such original part, item of equipment or appliance, any
such Optional Alteration shall be and remain the property of Lessee. To the
extent such Optional Alteration is not readily removable without impairing the
value, use or remaining useful life of an Item of Equipment to which such
Optional Alteration has been made, or is a part, item of equipment or appliance
which replaces any part, item of equipment or appliance originally incorporated
or installed in or attached to such Item of Equipment on the Closing Date
therefor or any part, item of equipment or appliance in replacement of or
substitution for any such original part, item of equipment or appliance, the
same shall, without further act, immediately be and become the property of, and
title shall vest in, Lessor free and clear of all Liens other than Lessor Liens
and Permitted Liens and shall be subject to the terms of this Lease Agreement.

         13. Substitutions of Equipment.

                  (a) Notwithstanding any provision of any Operative Document to
the contrary and subject to the provisions of this Section 13, Lessee may at any
time, so long as no Lease Event of Default has occurred and is continuing
hereunder, substitute an Item or Items of Equipment ("Replaced Equipment") with
natural gas compressors ("Replacement Equipment") that (i) as of the date Lessee
delivers the Notice of Substitution defined below in Section 13(b) (the
"Substitution Date") has a Date of Manufacture or a Date of Overhaul no earlier
than three (3) years prior to the Substitution Date, (ii) is not subject to any
Liens other than Permitted Liens or Lessor Liens (iii) is of a Similar Type, and
(iv) has an estimated fair market value as of the

                                      -9-
<PAGE>   14

Substitution Date and an estimated Residual Value in each case when aggregated
with the estimated fair market values and the estimated Residual Values,
respectively, equal to, or in excess of, the aggregate Acquisition Costs and the
aggregate Residual Values, respectively, of the Replaced Equipment; provided,
however, the condition in clause (i) need not be satisfied if (x) Lessee shall
have delivered to Lessor and Assignee with the Notice of Substitution an
Appraisal confirming satisfaction of the condition in clause (iii) or (y) as of
the Substitution Date, the aggregate Acquisition Costs for all Replacement
Equipment that does not satisfy clause (i) or for which no Appraisal has been
delivered does not exceed, from time to time, $3,000,000; and provided further,
that after any such substitution, the Items of Equipment as a group are
representative of the types and horse power of natural gas compressors at the
time owned, managed or leased by Lessee.

                  (b) On the first Business Day of each week after Lessee has,
in the immediately prior calendar week, substituted Replacement Equipment for
Replaced Equipment, Lessee shall provide Lessor with written notice thereof
("Notice of Substitution") in the form of Exhibit B hereto which Notice of
Substitution shall have attached thereto one or more Bills of Sale representing
the transfer from the seller thereof to Lessor for a purchase price (the
"Acquisition Cost" identified therefor on such Notice of Substitution) which
purchase price, when aggregated with the purchase prices of all other
Replacement Equipment being transferred to Lessor shall equal the aggregate
Acquisition Costs of the Replaced Equipment. Upon substitution of an Item of
Equipment under this Section 13 all rights and interests of Lessor in such
Replaced Equipment shall automatically cease and vest in Lessee. Lessor will at
the request and cost of Lessee furnish to or at the direction of Lessee, a bill
of sale without recourse or warranty (except as to the absence of Lessor Liens
and Collateral Agent Liens) and otherwise in form and substance reasonably
satisfactory to Lessee and Lessor, evidencing the transfer to or at the
direction of Lessee, of all of Lessor's right, title and interest in and to such
Replaced Item(s), "as-is", "where-is". The purchase price for such Replacement
Equipment shall be deemed paid by Lessor by virtue of its reconveyance to Lessee
or its designee of the Replaced Equipment and no further action shall be
required between Lessee or the seller of such Replacement Equipment on the one
hand and Lessor on the other hand to convey the Replacement Equipment to Lessor
or between Lessee or its designated purchaser of the Replaced Equipment on the
one hand and Lessor on the other hand to convey the Replaced Equipment to Lessee
or its designee, provided that Lessor shall execute or cause Collateral Agent to
execute any documents reasonably requested by Lessee (at Lessee's sole cost and
expense) to evidence the release of any Liens created pursuant to the Operative
Documents with respect to such Replaced Equipment. Upon the occurrence of such
events, Replacement Equipment shall be deemed to be Equipment as of the date of
the related Notice of Substitution for all purposes set forth in this Lease
Agreement and the other Operative Documents and that the Acquisition Cost for
such Replacement Equipment shall be equal to the Acquisition Cost set forth
therefor on the Notice of Substitution.

                  (c) In the event that, upon its receipt of a Notice of
Substitution and the related Bills of Sale for any Replacement Equipment, Lessor
shall reasonably challenge whether the aggregates of the fair market values or
Residual Values of said Replacement Equipment are equal to, or in excess of, the
aggregates of the Acquisition Costs or Residual Values, respectively, of the
Replaced Equipment, Lessee shall either within thirty (30) days of Lessor's
demand (i) revise the previously delivered Notice of Substitution and related
bills of sale so as to

                                      -10-
<PAGE>   15

replace or supplement said Replacement Equipment with other or additional
Replacement Equipment that Lessor reasonably believes satisfies the requirements
of this Section 13, or (ii) within thirty (30) days of Lessor's demand, provide
Lessor with an Appraisal confirming that the aggregate fair market values and
Residual Values of the Replacement Equipment are equal to or greater than the
aggregate Acquisition Costs and Residual Values, respectively, of the Replaced
Equipment.

         14. Appraisals. Lessee shall at its own expense cause an Appraisal of
each Item of Equipment for which no Appraisal has been previously delivered (the
date of such Appraisal, an "Appraisal Date") upon the earliest of: (i) the date
eighteen (18) months after the last Appraisal Date (or if no Appraisal Date has
occurred, after the first date on which Replacement Equipment is made subject to
this Lease) and (ii) the first date on which there is subject to this Lease,
Replacement Equipment with aggregate Acquisition Costs in excess of $15,000,000
and for which no Appraisal has been previously delivered.

          15. Identification Marks. Lessee shall use its best efforts to affix
within ninety (90) days of the Closing Date and shall thereafter keep and
maintain, prominently displayed on each Item of Equipment, a plaque or label
with the words "OWNED BY BRL UNIVERSAL EQUIPMENT 2001 A, L.P., AND SUBJECT TO A
SECURITY INTEREST IN FAVOR OF BANKERS TRUST COMPANY AS COLLATERAL AGENT FOR
NOTEHOLDERS OF AND LENDERS TO BRL UNIVERSAL EQUIPMENT 2001 A, L.P." or other
appropriate words designated by Lessor, with appropriate changes thereof and
additions thereto as from time to time may be required by law in order to
protect Lessor's and any Assignee's interests in such Item. Lessee shall not
allow the name of any Person, to be placed upon any Item of Equipment as a
designation that might be interpreted as indicating a claim of ownership thereto
or a security interest therein by any Person other than Lessor or any Assignee.

         16. Inspection. Lessee shall permit Lessor (and any designee or
authorized representatives thereof) to make inquiries of Lessee (and Lessee
shall respond to such inquiries) with respect to matters relevant to the
Equipment and to inspect any Item of Equipment, at such Person's expense (unless
there is a Lease Event of Default continuing, in which event such inspection
shall be at the expense of Lessee), including the cost and expense for such
Person's transportation to and from any site on which an Item is located, and
under conditions reasonably acceptable to Lessee, and Lessee will make available
the books and records of Lessee related thereto (including, but not limited to,
all Subleases) and subject to Section 17(b) make copies and extracts therefrom,
and will make available officers and the independent public accountants of
Lessee with respect to such matters, all upon reasonable notice and at such
reasonable times during normal business hours and as may be reasonably
requested.

         17. Assignment and Subleasing.

                  (a) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS SECTION 17,
LESSEE SHALL NOT, WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR, LEASE ANY ITEM OF
EQUIPMENT OR ASSIGN, TRANSFER OR ENCUMBER ITS RIGHTS, INTERESTS OR OBLIGATIONS
HEREUNDER. ANY ATTEMPTED LEASE IN VIOLATION HEREOF AND ANY ASSIGNMENT, TRANSFER
OR ENCUMBERING BY

                                      -11-
<PAGE>   16

LESSEE OF ITS RIGHTS, INTERESTS OR OBLIGATIONS HEREUNDER SHALL BE NULL AND VOID.
So long as no Lease Event of Default shall have occurred and be continuing,
Lessee may, without the consent of Lessor, agree to sublease, agree to extend
any sublease of, or agree to transfer in any other manner expressly provided for
under this Agreement one or more Items of Equipment to any other Person (a
"Sublessee"); provided that such Items of Equipment (whether one or more) are
maintained in the United States in accordance with Section 10(c); and provided
further, that any sublease entered into or extended pursuant to this Section
17(a) shall satisfy each of the following conditions (a "Sublease"):

                  (i) such Sublease shall expire before, or automatically expire
on or before, the expiration of the Term; unless at the time such Sublease is
made, Lessee has elected to exercise its purchase option under Section 28.2 and
no Lease Event of Default shall have occurred and is continuing;

                  (ii) such Sublease shall be in writing; shall identify the
Item of Equipment by manufacturer, model and unit number; shall expressly
prohibit any further assignment, sublease or transfer by Sublessee of any rights
or interests in the Equipment;

                  (iii) such Sublease may contain a purchase option in favor of
the Sublessee or any other provision pursuant to which the Sublessee may obtain
record or beneficial title to the Equipment leased thereunder from Lessee,
provided upon the exercise of such purchase option, Lessee substitutes new
Equipment hereunder in accordance with Section 13;

                  (iv) such Sublease shall prohibit the Sublessee from making
any alterations or modifications to the Equipment that would violate this Lease
Agreement;

                  (v) such Sublease shall require the Sublessee (i) to maintain
the Equipment in accordance with Sections 10 and 11 or shall require Lessee to
maintain the Equipment and (ii) to engage in activities with the Equipment in a
manner consistent with the Equipment's intended purpose and in accordance with
the Equipment's specifications; and

                  (vi) such Sublease and all other Subleases at the time in
effect taken as a whole shall be no less favorable with respect to their terms
or the creditworthiness of their sublessees than the subleases of all other
similar equipment owned, leased or managed by Lessee.

For so long as a Lease Event of Default has occurred and is continuing Lessee
shall not agree to sublease or agree to extend any sublease of any Item of
Equipment without the consent of Lessor; provided, however, if such Lease Event
of Default is solely the result of a breach of a covenant or of covenants to
deliver financial or other information to Lessor or Administrative Agent or to
use, maintain or repair the Equipment in accordance with Sections 10 and 11, (a
"Limited Event of Default"), Lessee may agree to sublease any Item of Equipment
in accordance with the requirements set forth in clauses (i) through (vi) of
Section 17(a), provided the sublease therefor is expressly subject and
subordinate to Lessor's

                                      -12-
<PAGE>   17

and any Assignee's interests in such Item of Equipment. If a Limited Event of
Default is subsequently cured in accordance with the terms of this Lease
Agreement, Lessee may cure any further Lease Default or Lease Event of Default
arising from any failure to make any Sublease expressly subject to and
subordinate to Lessor's and any Assignee's interest by delivering to Lessor and
Administrative Agent a copy of such Sublease and certifying that it is no less
favorable with respect to its terms or the creditworthiness of its sublessee
than the subleases (or leases) to customers of Lessee of the other natural gas
compressors owned or managed or leased by Lessee, taken as a whole.

                  (b) Upon request by Lessor, Lessee shall promptly deliver to
Lessor and Administrative Agent (x) a schedule of all subleases of the
Equipment, including Subleases certified by a Responsible Officer of Lessee and
(y) for so long as a Lease Default has occurred and is continuing, copies of
each sublease of an Item of Equipment (including any Sublease) at the time in
effect. No such subleasing by Lessee will reduce or affect any of the
obligations of Lessee hereunder or the rights of Lessor (and any Assignee)
hereunder, and all of the obligations of Lessee hereunder shall be and remain
primary and shall continue in full force and effect as the obligations of a
principal and not of a guarantor or surety.

                  (c) Lessee shall not discriminate against the Items of
Equipment when determining which of natural gas compressors owned, managed or
leased by Lessee that it will lease to its customers.

         18. Liens. Lessee shall not directly or indirectly create, incur,
assume or suffer to exist any Lien on or with respect to (i) any Item of
Equipment or any part thereof or Lessor's interest therein (ii) any proceeds of
any Item of Equipment, (iii) any insurances required hereunder, (iv) any
sublease of any Item of Equipment or (v) this Lease Agreement or any of Lessor's
interests hereunder, except Permitted Liens and Lessor Liens. Lessee, at its own
expense, will promptly pay, satisfy and otherwise take such actions as may be
necessary to keep this Lease Agreement and each Item of Equipment free and clear
of, and to duly discharge or eliminate or bond in a manner satisfactory to
Lessor and any Assignee, any Lien other than Permitted Liens and Lessor Liens if
the same shall arise at any time. Lessee will notify Lessor and any Assignee in
writing promptly upon a Responsible Officer of Lessee obtaining knowledge of any
Lien other than Permitted Liens and Lessor Liens that shall attach to the
Equipment or any Item of Equipment, and of the full particulars thereof.

         19. Loss, Damage or Destruction.

                  19.1 Risk of Loss, Damage or Destruction. Lessee hereby
assumes all risk of loss, damage, theft, taking, destruction, confiscation,
requisition or commandeering, partial or complete, of or to each Item of
Equipment ("Loss, Damage or Destruction"), however caused or occasioned except
for Loss, Damage or Destruction caused by the gross negligence or willful
misconduct of Lessor, such risk to be borne by Lessee with respect to each Item
of Equipment from the date of this Lease Agreement, and continuing until (i)
such Item of Equipment has been returned to Lessor in accordance with the
provisions of Section 6, (ii) the rights and interests in such Item of Equipment
have been transferred to Lessee in accordance with the provisions of Section
28.2 or 28.4 or (iii) such Item of Equipment has been sold in accordance with
Section 28.3.

                  19.2 Replacement of Equipment Upon an Event of Loss. If an
Event of Loss occurs with respect to an Item of Equipment during the Term
thereof, Lessee shall give Lessor

                                      -13-
<PAGE>   18

and any Assignee prompt written notice of such loss and shall replace such Item
within sixty (60) days of the date of the Event of Loss subject to and in
accordance with Section 13. Any payments (including without limitation,
insurance proceeds) received at any time by Lessor from any Government Entity,
insurer or other Person as a result of an occurrence of such Event of Loss,
provided no Lease Event of Default shall have occurred and be continuing, shall
be paid to Lessee upon substitution of such Item of Equipment in accordance with
Section 13, and if a Lease Event of Default shall have occurred and is
continuing, shall be paid to and retained by Lessor as security for Lessee's
obligations under the Operative Documents until such time as no Lease Event of
Default is continuing.

                  19.3 Application of Payments Not Relating to an Event of Loss.
Subject to Section 20(d), any payments (including, without limitation, insurance
proceeds) received at any time by Lessor or Lessee from any Governmental Entity,
insurer or other Person with respect to any loss or damage to any Item or Items
of Equipment not constituting an Event of Loss, will be applied directly in
payment of repairs or for replacement of property in accordance with the
provisions of Sections 11 and 12, if not already paid by Lessee, or if already
paid by Lessee and no Lease Event of Default shall have occurred and be
continuing, shall be applied to reimburse Lessee for such payment, and any
balance remaining after compliance with the provisions of said Sections with
respect to such loss or damage shall be retained by Lessee. If any Lease Event
of Default shall have occurred and be continuing, all payments hereunder shall
be paid to and retained by Lessor as security for Lessee's obligations under the
Operative Documents until such time as no Lease Event of Default is continuing.

         20. Insurance.

         (a) Lessee will cause to be carried and maintained, at its sole
expense, with respect to each Item of Equipment at all times during the Term
thereof and for the geographic area in which such Item is at any time located
and until such Item of Equipment has been returned to Lessor pursuant to Section
6, the rights and interests therein have been transferred to Lessee pursuant to
Section 28.2 or 28.4 or sold to a third party pursuant to Section 28.3 physical
damage insurance (including theft and collision insurance) insuring against
risks of physical loss or damage to the Equipment ("Property Insurance") in an
amount no less than the aggregate Acquisition Costs for all Items of Equipment
per occurrence except for Lessee's customary sub-limits for certain perils, and
insurance, and liability insurance in the amount of $50,000,000 per occurrence
against liability for bodily injury, death and property damage resulting from
the use and operation of the Equipment (including sudden and accidental
environmental pollution coverage) ("Liability Insurance") of the types and
amounts of coverage equal to or greater than the insurance coverage Lessee
carries on any other similar equipment owned, managed or leased by Lessee.
Property Insurance shall not have deductibles, in the aggregate, in excess of
$2,500,000 per annum and the Liability Insurance shall have no deductibles. The
policies of insurance required under this Section 20 shall be valid and
enforceable policies issued by insurers having an A.M. Best Company rating of
"A-" or better or otherwise acceptable to Administrative Agent and shall provide
coverage with respect to incidents occurring anywhere in the United States. In
the event that any of such Liability Insurance policies for an Item of Equipment
shall now or hereafter provide coverage on a "claims-made" basis, Lessee shall
continue to maintain such policies in

                                      -14-
<PAGE>   19

effect for a period of not less than three (3) years after the expiration of the
Term of the last Item of Equipment financed hereunder.

         (b) Such Property Insurance policy or policies will name Lessee, Lessor
and any Assignee as the loss payees. Such Liability Insurance policy or policies
will name Lessor, Lessor General Partner, Indenture Trustee, each Tranche B
Lender, Administrative Agent, Collateral Agent and each of their shareholders,
partners, directors, officers, employees, agents and servants (each an
"Additional Insured") as an additional insured. Each such policy shall provide
that (i) the insurers waive any claim for premiums and any right of subrogation
or setoff against Additional Insureds, (ii) it may not be invalidated against
any Additional Insured by reason of any violation of a condition or breach of
warranty of the policies or the application therefor by Lessee, (iii) it may be
canceled or materially altered or reduced in coverage by the insurer only after
no less than ten (10) days' prior written notice from Lessee's insurance broker
to Lessor and Administrative Agent, and (iv) the insurer will give written
notice to Lessor and Administrative Agent in the event of nonpayment of premium
by Lessee when due.

         (c) On the Closing Date, and thereafter not less than three (3) days
prior to the expiration dates of any expiring policies required under this
Section 20, Lessee shall furnish Lessor and Administrative Agent with
certificates of the insurance or replacement insurance coverage required by this
Section 20.

         (d) During the Term, unless a Lease Default has occurred and be
continuing, all proceeds of Property Insurance on account of any damage to or
destruction to the Equipment in an amount less than $1,000,000 shall be paid
over to Lessee or as it may direct and any such proceeds equal to or greater
than $1,000,000 shall be paid over to Lessor to be applied in accordance with
Section 19.3. In the event that a Lease Event of Default shall have occurred and
be continuing all such proceeds shall be paid to Lessor to be applied in
accordance with Section 19.2 or 19.3 as the case may be.

         21. NO LESSOR WARRANTIES. LESSOR HEREBY LEASES THE EQUIPMENT TO LESSEE
AS-IS WHERE-IS, WITH ALL FAULTS, IF ANY, AND IN WHATEVER CONDITION IT MAY BE IN,
AND EXPRESSLY DISCLAIMS AND MAKES NO REPRESENTATION OR WARRANTY, EITHER
EXPRESSED OR IMPLIED, AS TO THE DESIGN, CONDITION, QUALITY, CAPACITY,
MERCHANTABILITY, DURABILITY, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE
OF, OR ANY OTHER MATTER CONCERNING, THE EQUIPMENT. LESSEE HEREBY WAIVES ANY
CLAIM (INCLUDING ANY CLAIM BASED ON STRICT OR ABSOLUTE LIABILITY IN TORT OR
INFRINGEMENT) IT MIGHT HAVE AGAINST LESSOR, ANY PARTNER OF LESSOR OR ANY
AFFILIATE THEREOF OR ANY OF THEIR RESPECTIVE SHAREHOLDERS, PARTNERS, OFFICERS,
DIRECTORS, EMPLOYEES, SERVANTS OR AGENT FOR ANY LOSS, DAMAGE (INCLUDING
INCIDENTAL OR CONSEQUENTIAL DAMAGE) OR EXPENSE CAUSED BY THE EQUIPMENT OR BY
LESSEE'S LOSS OF USE THEREOF FOR ANY REASON WHATSOEVER, INCLUDING COMPLIANCE
WITH ENVIRONMENTAL LAWS (WHICH ITEMS OF EQUIPMENT, LESSEE ACKNOWLEDGES, WERE
SELECTED BY LESSEE ON THE BASIS OF ITS OWN JUDGMENT WITHOUT RELIANCE ON ANY
STATEMENTS, REPRESENTATIONS, GUARANTIES OR

                                      -15-
<PAGE>   20

WARRANTIES MADE BY LESSOR, ANY PARTNER OF LESSOR, OR ANY AFFILIATE THEREOF OR
ANY OF THEIR RESPECTIVE SHAREHOLDERS, PARTNERS, OFFICERS, DIRECTORS, EMPLOYEES,
SERVANTS OR AGENTS.

         22. Assignment of Manufacturer Warranties. So long and only so long as
a Lease Event of Default shall not have occurred and be continuing, and so long
and only so long as an Item of Equipment shall be subject to this Lease
Agreement and Lessee shall be entitled to possession of such Item hereunder,
Lessor authorizes Lessee, at Lessee's expense, to assert for Lessor's account,
and assigns to Lessee all rights and powers of Lessor under any manufacturer's,
vendor's or dealer's warranty on the Equipment or any part thereof and Lessor
agrees to use reasonable efforts at Lessee's expense to assist Lessee in
obtaining the benefits of such warranties; provided, however, that Lessee shall
indemnify, protect, save, defend and hold harmless Lessor, each of its partners
and any Affiliate thereof and each of their respective shareholders, partners,
officers, directors, employees, servants and agents from and against any and all
claims, and all costs, expenses, damages, losses and liabilities incurred or
suffered by any such Person in connection therewith, as a result of, or incident
to, any action by Lessee pursuant to the foregoing authorization except as a
result of such Person's gross negligence or willful misconduct.

         23. Events of Default. The occurrence of any of the following specified
events (whatever the reason for such Lease Event of Default and whether such
event shall be voluntary or involuntary or come about or be effected by
operation of law or pursuant to or in compliance with any judgment, decree or
order of any court or any order, rule or regulation of any administrative or
governmental body) shall constitute a "Lease Event of Default":

                  (a) Lessee shall fail to make any Lease Payment (other than a
Semi-Annual Lease Payment) or pay any amounts under Sections 28.2, 28.4 and 29
on the date the same is due and payable and such failure shall continue
unremedied for three (3) or more Business Days; or

                  (b) Lessee shall fail to make any Semi-Annual Lease Payment on
the date the same is due and payable and such failure shall continue unremedied
for twenty-five (25) or more days; or

                  (c) Lessee shall fail to observe or perform any of the
covenants, agreements or obligations of Lessee set forth in Sections 6, 17 or 20
of this Lease Agreement or Section 10 or 12.1 of the Participation Agreement,
and such failure shall continue unremedied for ten (10) or more Business Days
after receipt by Lessee of written notice thereof from Lessor or any Assignee;
or

                  (d) Lessee or Guarantor shall fail to perform or observe any
other covenant, condition, or agreement to be performed or observed by it under
any Operative Document (other than those identified in clauses (a), (b) and (c)
above), and such failure shall continue unremedied for a period of thirty (30)
days after receipt by Lessee of written notice thereof from Lessor or any
Assignee; or

                                      -16-
<PAGE>   21

                  (e) any representation or warranty made by Lessee or Guarantor
in any of the Operative Documents, or in any certificate delivered pursuant
thereto, shall prove to be untrue in any material respect; or

                  (f) Lessee or any Subsidiary of Lessee shall default in the
payment when due of any principal of or interest on any of its other Debt
aggregating $20,000,000 or more, or any event specified in any note, agreement,
indenture or other document evidencing or relating to any such Debt shall occur
if the effect of such event is to cause, or (with the giving of any notice or
the lapse of time or both) to permit the holder or holders of such Debt ( or a
trustee or Administrative Agent on behalf of such holder or holders) to cause,
such Debt to become due prior to its stated maturity; or

                  (g) At any time after the execution and delivery thereof,
Section 8 of the Participation Agreement ceases to be in full force and effect
or Guarantor denies or disaffirms it obligations thereunder; or

                  (h) Lessee or any of its Subsidiaries shall commence a
voluntary case concerning itself under the Bankruptcy Code; or an involuntary
case is commenced against Lessee or any of its Subsidiaries, and is not
dismissed within sixty (60) days, after commencement of the case; or a custodian
(as defined in the Bankruptcy Code) is appointed for, or takes charge of, all or
substantially all of the property of Lessee or any of its Subsidiaries, or
Lessee or any of its Subsidiaries commences any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to Lessee or any of its Subsidiaries, or there is
commenced against Lessee or any of its Subsidiaries any such proceeding which
remains undismissed for a period of sixty (60) days, or Lessee or any of its
Subsidiaries is adjudicated insolvent or bankrupt; or any order of relief or
other order approving any such case or proceeding is entered; or Lessee or any
of its Subsidiaries suffers any appointment of any custodian or the like for it
or any substantial part of its property to continue undischarged or unstayed for
a period of sixty (60) days; or Lessee or any of its Subsidiaries makes a
general assignment for the benefit of creditors; or any corporate action is
taken by Lessee or any of its Subsidiaries for the purpose of effecting any of
the foregoing; or

                  (i) Reserved; or

                  (j) One or more judgments or decrees shall have been entered
against Lessee or any Subsidiary involving in the aggregate for Lessee and its
Subsidiaries a liability (not paid or fully covered by a reputable and solvent
insurance company) and such judgments and decrees either shall be final and
non-appealable or shall not be vacated, discharged or stayed or bonded pending
appeal for any period of thirty (30) consecutive days, and the aggregate amount
of all such judgments exceeds $20,000,000; or

                  (k) At any time after the execution and delivery thereof, any
of the Operative Documents shall cease to be in full force and effect, or shall
cease to give the Lessor the Liens, rights, powers and privileges purported to
be created thereby (including, without limitation, a perfected security interest
in, and Lien on, all of the Lessee Collateral (other than Lessee

                                      -17-
<PAGE>   22

Collateral with a value not to exceed $1,000,000)), or Collateral Agent the
Liens, rights, powers and privileges purported to be created thereby (including,
without limitation, a perfected security interest in, and Lien on, all of Lessor
Collateral (other than Lessor Collateral with a value not to exceed $1,000,000))
in each case superior to and prior to the rights of all third Persons (except as
permitted herein), and subject to no other Liens other than Permitted Liens and
Lessor Liens; or

                  (l) A Change of Control shall occur.

         24. Remedies Upon Default. Upon the occurrence of any Lease Event of
Default and at any time thereafter so long as the same shall be continuing,
Lessor may (except in the case of a Lease Event of Default of the type described
in Section 23(h), in which case Lessor shall be deemed automatically without
further act to have elected the remedy set forth in clause (d) below) exercise
one or more of the following remedies, to the extent permitted by Applicable
Law, as Lessor in its sole discretion shall elect:

                  (a) Lessor may terminate or cancel this Lease Agreement,
without prejudice to any other remedies of Lessor hereunder, with respect to all
or any Item of Equipment, and whether or not this Lease Agreement has been so
terminated, may enter the premises of Lessee, subject to Lessee's normal safety
and security concerns, including standard confidentiality requirements, or of
any other party to take immediate possession of the Equipment and remove all or
any Item of Equipment by summary proceedings or otherwise, or may cause Lessee,
at Lessee's expense, to store, maintain, surrender and deliver possession of the
Equipment or such Item in the same manner as provided in Section 6;

                  (b) Lessor may hold, keep idle or lease to others any Item of
Equipment, as Lessor in its sole discretion may determine, free and clear of any
rights of Lessee, except that Lessee's obligation to pay Lease Payments for any
Lease Payment Periods commencing after Lessee shall have been deprived of
possession pursuant to this Section 24 shall be reduced by the net proceeds
(after taking into account all expenses associated therewith), if any, received
by Lessor from leasing the Equipment or such Item to any Person other than
Lessee for the same Lease Payment Periods or any portion thereof;

                  (c) Lessor may sell the Equipment or any Item of Equipment at
public or private sale as Lessor may determine, free and clear of any rights of
Lessee, and Lessee shall pay to Lessor, as liquidated damages for loss of a
bargain and not as a penalty (in lieu of the Lease Payments due for the
Equipment or Item(s) so sold for any Lease Period commencing after the date on
which such sale occurs), the sum, without duplication, of (i) all unpaid Lease
Payments payable for each Item of Equipment for all Lease Payment Periods
through the date on which such sale occurs, plus (ii) an amount equal to the
excess, if any, of (A) the Acquisition Cost of the Item(s) of Equipment so sold
over (B) the Net Proceeds of Sale, plus interest on the amount of such excess
from the date of such sale until the date of payment by Lessee at a rate equal
to the aggregate of (1) 82% of the Tranche A Rate, (2) 15% of the Applicable
Tranche B Rate, (3) 3% of the Applicable Equity Rate and (4) 2.0%, plus (iii)
all unpaid Supplemental Payments due with respect to each Item of Equipment so
sold;

                                      -18-
<PAGE>   23

                  (d) whether or not Lessor shall have exercised, or shall
thereafter at any time exercise, any of its rights under subsection (a) or (b)
above with respect to any Item(s) of Equipment, Lessor, by written notice to
Lessee specifying a payment date, may demand that Lessee pay to Lessor, and
Lessee shall pay to Lessor, on the payment date specified in such notice, as
liquidated damages for loss of a bargain and not as a penalty (in lieu of the
Lease Payment due for any Item(s) of Equipment for any Lease Payment Period
commencing after the payment date specified in such notice and in lieu of the
exercise by Lessor of its remedies under subsection (b) above in the case of a
re-lease of such Item(s) or under subsection (c) above with respect to a sale of
such Item(s)), the sum, without duplication, of (i) all unpaid Lease Payments
payable for such Item(s) for all Lease Payment Periods through the payment date
specified in such notice, plus (ii) all unpaid Supplemental Payments due with
respect to such Item(s) as of the payment date specified in such notice, plus
(iii) an amount equal to any Premium, Makewhole or Breakage Costs owed or paid
by Lessor to any Person under the Operative Documents, plus (iv) an amount, with
respect to each such Item, equal to the Acquisition Cost of such Item(s);
provided, however, upon payment in full by Lessee within ten (10) days of demand
of all amounts due under this Section 24(d), Lessor will at the request and cost
of Lessee furnish to or at the direction of Lessee a bill of sale, without
recourse or warranty (except as to the absence of Lessor Liens and Collateral
Agent Liens), and otherwise in form and substance reasonably satisfactory to
Lessee and Lessor evidencing the transfer to or at the direction of Lessee, all
of Lessor's right, title and interest in and to such Item(s), "as-is, where-is";
and

                  (e) Lessor may exercise any other right or remedy which may be
available to it under applicable law or proceed by appropriate court action to
enforce the terms hereof or to recover damages for the breach hereof and
terminate this Lease Agreement.

                  Lessee shall be liable for all costs and expenses, including
reasonable attorney's fees and expenses, incurred by Lessor, the Indenture
Trustee, Collateral Agent, Administrative Agent or any Assignee by reason of the
occurrence of any Lease Event of Default or the exercise of Lessor's remedies
with respect thereto, including all reasonable costs and expenses incurred in
connection with the return of the Equipment in accordance with Section 6 or in
placing the Equipment in the condition required by said Section. Except as
otherwise expressly provided above, no remedy referred to in this Section 24 is
intended to be exclusive, but each shall be cumulative and in addition to any
other remedy referred to above or otherwise available to Lessor at law or in
equity; and the exercise or beginning of exercise by Lessor of any one or more
of such remedies shall not constitute the exclusive election of such remedies
and shall not preclude the simultaneous or later exercise by Lessor of any or
all of such other remedies. No express or implied waiver by Lessor of any Lease
Event of Default shall in any way be, or be construed to be, a waiver of any
future or subsequent Lease Event of Default. To the extent permitted by
applicable law, Lessee hereby waives any rights now or hereafter conferred by
statute or otherwise which may require Lessor to sell, lease or otherwise use
the Equipment in mitigation of Lessor's damages as set forth in this Section 24
or which may otherwise limit or modify any of Lessor's rights and remedies in
this Section 24.

         25. Lessor's Right to Perform for Lessee. If Lessee fails to make any
Supplemental Payment required to be made by it hereunder or fails to perform or
comply with any of its agreements contained herein, which failure shall continue
until such time as such failure shall

                                      -19-
<PAGE>   24

constitute a Lease Event of Default and can be cured by the payment of money,
Lessor may (but shall not be obligated) itself, after notice to Lessee, make
such payment or perform or comply with such agreement, and the amount of such
payment and the amount of the reasonable expenses of Lessor incurred in
connection with such payment or the performance of or compliance with such
agreement, as the case may be, together with interest thereon at the rate
specified in Section 26, shall, if not paid by Lessee to Lessor on demand, be
deemed a Supplemental Payment hereunder; provided, however, that no such
payment, performance or compliance by Lessor shall be deemed to cure any Lease
Event of Default with respect to Lessee.

         26. Late Charges. Lessee shall pay to Lessor, upon demand, to the
extent permitted by applicable law, interest on any installment of a Lease
Payment not paid when due, and on any Supplemental Payment or other amount
payable under this Lease Agreement which is not paid when due, for any period
for which any of the same is overdue (without regard to any grace period) at a
rate equal to the lesser of (a) the Overdue Rate and (b) the maximum rate of
interest permitted by law.

         27. Notices. All notices provided for or required under the terms and
provisions hereof shall be given in accordance with Section 12.4 of the
Participation Agreement.

         28. Lessee's Renewal, Transfer and Early Termination Options; Purchase
Obligation.

                  28.1 Renewal Option. If no Lease Event of Default shall have
occurred and be continuing, Lessee has not elected to purchase (or deemed to
purchase) the Equipment under Section 28.2 and this Lease Agreement shall not
have been earlier terminated, Lessee may request in writing to renew the Lease
Agreement on the basis of ten (10) one-year renewals with respect to all but not
less than all Items of Equipment then subject to this Lease Agreement by
providing to Administrative Agent and Lessor a written notice of request to
renew within 365 days prior to the end of the Term. In its sole discretion,
Lessor shall determine on or before the date three (3) months prior to the end
of the Term whether to renew and extend the leasing of the Equipment on terms
and conditions acceptable to Lessee and Lessor; provided any such extension
shall be conditioned on the repayment of the Tranche A Notes and Tranche B
Loans. Any failure on the part of Lessor to respond to Lessee's request shall be
deemed a refusal to extend the Term.

                  28.2 Lessee's End of Term Purchase Option.

                  (a) On the Termination Date, if this Lease Agreement shall not
have been earlier terminated, Lessee or its designee shall be entitled, at its
option, to acquire all, but not less than all, of Lessor's rights and interests
in all, but not less than all, of the Items of Equipment for an amount (the
"Purchase Option Amount"), with respect to all Items of Equipment, payable in
immediately available funds, equal to the sum without duplication of (i) the
aggregate of the Acquisition Costs of all Items of Equipment, plus (ii) the
Lease Payments due and payable for such Items of Equipment on the Termination
Date, plus (iii) any Supplemental Payments then due and owing.

                                      -20-
<PAGE>   25
                  (b) Upon payment in full of all amounts due upon the exercise
of Lessee's option under this Section 28.2, Lessor will, at the request and cost
of Lessee, (i) transfer to or at the direction of Lessee, without recourse or
warranty (except as to the absence of Lessor Liens and Collateral Agent Liens),
all of Lessor's right, title and interest in and to such Item(s), "as-is,
where-is" and (ii) furnish to or at the direction of Lessee, a bill of sale
without recourse or warranty (except as to Lessor Liens and Collateral Agent
Liens) in form and substance reasonably satisfactory to Lessee and Lessor,
evidencing such transfer.

                  (c) If Lessee does not intend to exercise its purchase option
under this Section 28.2, Lessee shall give written notice to Lessor to such
effect in accordance with Section 28.3.1. If Lessee fails to give such written
notice to Lessor, such failure shall constitute an election and a binding
obligation of Lessee to exercise the purchase option hereunder and to pay Lessor
the Purchase Option Amount with respect thereto on the Termination Date.

                  28.3 Third Party Sale or Redelivery of Equipment.

                  28.3.1 Notice to Remarket or Return Possession of Equipment.
So long as no Lease Default or Lease Event of Default shall have occurred,
Lessee shall have the option, exercisable by giving Lessor written notice (a
"Redelivery Notice") on or before 365 days prior to the Termination Date, to
remarket all Items of Equipment then subject to this Lease Agreement and, if the
Equipment is not sold to a third party in accordance with 28.3.3, deliver the
Equipment to Lessor or its designee on the Termination Date in accordance with
Section 6. In the event Lessee fails to deliver a Redelivery Notice within the
time period prescribed in the preceding sentence or the Redelivery Notice is
revoked or for any other reason deemed not effective, Lessee shall be deemed to
have irrevocably elected to purchase each Item of Equipment in accordance with
Section 28.2 and shall proceed to purchase the Equipment in accordance
therewith. If at any time after Lessee delivers a Redelivery Notice, a Lease
Default or a Lease Event of Default shall occur, then Lessee's Redelivery Notice
shall be deemed automatically irrevocably revoked and Lessee shall be deemed to
have irrevocably elected the purchase option in Section 28.2 and shall proceed
to purchase the Equipment in accordance therewith.

                  28.3.2 Remarketing Obligations. In the event that Lessee does
not exercise its option to acquire Lessor's rights and interests in all the
Equipment pursuant to Section 28.2, then Lessee shall have the obligation during
the last 365 days of the Term, if applicable (the "Remarketing Period"), to
solicit bona fide bids for not less than all Items of Equipment from prospective
purchasers who are financially capable of purchasing such Items of Equipment for
cash on an "as-is", "where-is" basis, without recourse or warranty. Any bid
received by Lessee prior to the end of the Remarketing Period shall be promptly
communicated to Lessor in writing, setting forth the amount of such bid and the
name and address of the person or entity submitting such bid. Notwithstanding
the foregoing, Lessor shall have the right, but not the obligation, to seek bids
for the Equipment during the Remarketing Period and Lessee shall grant Lessor
and Administrative Agent or their respective designees access to the Equipment
upon reasonable notice and during normal business hours to facilitate the
exercising of such right.

                                      -21-
<PAGE>   26

                  28.3.3 Sale of Equipment to Third Party Buyer. On the
Termination Date, provided that all the conditions set forth in Sections 28.3.1,
28.3.2 and in clauses (i) and (ii) below have been met, Lessor shall sell (or
cause to be sold) all Items of Equipment, for cash to the bidder, if any, who
shall have submitted the highest bid during the Remarketing Period on an
"as-is", "where-is" basis and without recourse or warranty, and upon receipt by
Lessor of the sales price, Lessor shall instruct Lessee to deliver and Lessee
shall deliver the Equipment to such bidder; provided, that (i) any such sale to
a third party shall be consummated, and the sales price for the Equipment shall
have been paid to Lessor in immediately available funds, on or before the
Termination Date; and (ii) Lessor shall not be obligated to sell such Equipment
if the Net Proceeds of Sale of all, but not less than all, the Equipment are
less than the aggregate Maximum Lessor Risk Amount applicable to all, but not
less than all, the Equipment as of the Termination Date. Upon satisfaction of
the conditions to any sale under this Section 28.3 (including the absence of any
Lease Default or Lease Event of Default during the Remarketing Period) and
payment in full of all amounts due upon such a sale, Lessor will, at the request
and cost of the bidder, transfer to or at the direction of the bidder, without
recourse or warranty (except as to the absence of Lessor Liens and Collateral
Agent Liens), all of Lessor's right, title and interest in and to such Item(s),
"as-is", "where-is" and at the cost and request of the bidder, furnish to or at
the direction of Lessee, a bill of sale without recourse or warranty (except as
to Lessor Liens) and otherwise in form and substance reasonably satisfactory to
the bidder and Lessor, evidencing such transfer.

                  28.4 Lessee's Early Purchase Options and Obligations.

                           28.4.1 Partial Purchase Option. Provided this Lease
Agreement shall not have been earlier terminated and no Lease Event of Default
shall have occurred and is continuing and subject to the provisions of Section
28.4.4, Lessee or its designee shall be entitled, at Lessee's option, (i) on any
Floating Payment Date prior to February 15, 2004, to purchase with the proceeds
of one or more Equity Offerings, within the first 120 days after the
consummation of the related Equity Offering all but not less than all of
Lessor's rights and interests in one or more Items of Equipment which in the
aggregate for all such purchases under this Section 28.4.1 have Acquisition
Costs not in excess of thirty five (35%) percent of the aggregate Acquisition
Costs of all Items of Equipment as of the Closing Date and (ii) on any Floating
Payment Date on or after February 15, 2005 to purchase all but not less than all
of Lessor's rights and interest in one or more Items of Equipment.

                           28.4.2 Total Purchase Option. Provided this Lease
Agreement shall not have been earlier terminated and no Lease Event of Default
shall have occurred and is continuing (except, in the case of clause (i), a
Lease Event of Default caused by a Change of Control provided such Lease Event
of Default has been waived in writing by Tranche B Lenders and Lessor), and
subject to the provisions of Section 28.4.4, Lessee or its designee shall be
entitled, at Lessee's option, (i) on any Business Day within ninety (90) days
after the occurrence of a Change of Control that occurs prior to February 15,
2005, (ii) on any Business Day within thirty (30) days after the Tranche A Notes
have been accelerated or have otherwise become due and payable prior to the
Scheduled Termination Date and (iii) on any Business Day in connection with a
legal defeasance or covenant defeasance of the Tranche A Notes in accordance
with the terms of the

                                      -22-
<PAGE>   27

Indenture to purchase all, but not less than all, of Lessor's rights and
interest, in all, but not less than all, Items of Equipment.

                           28.4.3 Purchase Offer Obligations. Provided this
Lease Agreement has not been earlier terminated and no Lease Event of Default
shall have occurred and is continuing (except, in the case of clause (i), a
Lease Event of Default caused by a Change of Control provided the Tranche B
Notes have not been accelerated or have otherwise become due and payable prior
to the Scheduled Termination Date) and subject to the provisions of Section
28.4.4, Lessee shall (i) within twenty-five (25) days after a Change of Control
offer to purchase all of but not less than all of Lessor's interests in all of
the Equipment and promptly after the expiration of the corresponding tender
offer under the Indenture shall purchase Items of Equipment with aggregate
Acquisition Costs (x) equal to or greater than 122% of the Tranche A Notes to be
Purchased by Lessor pursuant to the corresponding tender offer under the
Indenture (such amount, the "Equity Redemption Target") (y) less than the Equity
Redemption Target but greater than the Equity Redemption Target less $50,000 or
(z) greater than the Equity Redemption Target and (ii) within twenty-five (25)
to forty (40) days after a Net Proceeds Offer Trigger Date, offer to purchase
from Lessor all but not less than all of Lessor's interest in Equipment having
aggregate Acquisition Costs equal to or greater than 122% of the amount of
Tranche A Notes for which an offer to purchase is to be made under Section
9.2(c) of the Participation Agreement and promptly after the expiration of the
corresponding tender offer under the Indenture shall purchase Items of Equipment
with aggregate Acquisition Costs (x) equal 122% of the Tranche A Notes to be
purchased by Lessor pursuant to the corresponding tender offer under the
Indenture (such amount, the "Net Proceeds Redemption Target") (y) less than the
Net Proceeds Redemption Target but greater than the Net Proceeds Redemption
Target less $50,000 or (z) greater than the Net Proceeds Redemption Target.

                           28.4.4 Exercise of Purchase Options and Obligations.
Each of the purchase options and obligations set forth in this Section 28.4
shall be exercisable by giving or requiring Lessee to give, as the case may be,
Lessor irrevocable written notice of such election or offer to purchase at least
thirty-five (35) but no more than sixty (60) days before the proposed date of
purchase (the "Purchase Date") and by payment to Lessor on such Purchase Date in
immediately available funds an amount (the "Option Amount"), with respect to
each Item of Equipment to be acquired, equal to the sum, without duplication, of
(i) the Acquisition Cost of such Item of Equipment, plus (ii) the Lease Payments
due and payable for such Item of Equipment on the Purchase Date, plus (iii) any
Premium payable by Lessor on the Tranche A Notes as a result of such purchase,
plus (iv) the amount of Breakage Costs, if any payable by Lessor as a result of
such purchase, plus (v) any Supplemental Payments then due and owing to any
Person. Any amounts paid by Lessee under Section 28.4.3 in excess of the Equity
Redemption Target or Net Proceeds Redemption Target, as the case may be, shall
be held by Lessor as collateral for Lessee's obligations hereunder. Lessor shall
invest such collateral in Permitted Investments and any amounts earned thereon
shall be for Lessee's Account. When less than all Items of Equipment are to be
sold by Lessor hereunder, the Items to be sold shall be selected by Lessee,
provided however, they must be acceptable to Lessor in its sole discretion and
such sale shall be conditioned upon delivery by Lessee to (and in the case of a
sale under Section 28.4.3, Lessee shall be obligated to deliver to) Lessor and
Administrative Agent of an Appraisal dated no earlier than thirty (30) days
prior to the date of such sale confirming that the then aggregate fair market

                                      -23-
<PAGE>   28

value and Residual Values of the Items of Equipment at such time not being sold
shall each be greater than or equal to the aggregate Acquisition Costs for such
Items. Upon payment in full of all amounts due upon the sale of any Item of
Equipment under this Section 28.4, Lessor will, at the request and cost of
Lessee, transfer to or at the direction of Lessee, without recourse or warranty
(except as to the absence of Lessor Liens and Collateral Agent Liens), all of
Lessor's right, title and interest in and to such Item(s) so purchased, "as-is",
"where-is" and, at the request and cost of Lessee, furnish to or at the
direction of Lessee, a bill of sale without recourse or warranty (except as to
the absence of Lessor Liens and Collateral Agent Liens) and otherwise in form
and substance reasonably satisfactory to Lessee and Lessor, evidencing such
sale.

         29. End of Term Lease Payment Adjustment.

                  29.1 Third Party Sale of Equipment. This Section 29.1 shall
apply only if no Lease Default or Lease Event of Default has occurred and a sale
of the Items of Equipment to a third party pursuant to Section 28.3 has been
consummated on the Termination Date. If the Net Proceeds of Sale of such Items
of Equipment are less than the aggregate Acquisition Costs as of the Termination
Date, Lessee shall, on the Termination Date, pay to Lessor as an end of term
Lease Payment adjustment, in immediately available funds, an amount equal to
such deficiency (a "Deficiency") as an adjustment to the Lease Payment payable
under this Lease Agreement for such Items of Equipment plus the Lease Payment
due and payable for such Item(s) of Equipment on the Termination Date, plus any
Supplemental Payments then due and owing to Lessor hereunder; provided, however,
the amount of the Deficiency payable by Lessee with respect to such Items of
Equipment shall not exceed the aggregate Maximum Lessee Risk Amount. If the Net
Proceeds of Sale of such Items of Equipment exceed the aggregate Acquisition
Cost of such Items of Equipment and if Lessee shall have paid Lessor on or
before the Termination Date the Lease Payment due and payable for such Items of
Equipment on the Termination Date, plus all Supplemental Payments then due and
owing with respect to such Items of Equipment, Lessor shall pay to such Lessee
an amount equal to such excess as an adjustment to the Lease Payment payable
under this Lease Agreement for such Items of Equipment.

                  29.2 Lessee Payment. If a sale of any Item of Equipment either
to Lessee pursuant to Section 28.2 or 28.4 or to a third party pursuant to
Section 28.3 has not been consummated on the Termination Date for any reason,
then Lessee shall on the Termination Date pay to Lessor as an end of term Lease
Payment adjustment, in immediately available funds, as an adjustment to the
Lease Payment payable under this Lease Agreement for such Item, an amount equal,
without duplication, to the sum of the Lease Payment due and payable for such
Item of Equipment on the Termination Date, plus all Supplemental Payments then
due and owing with respect to such Item(s) plus (i) the Maximum Lessee Risk
Amount of such Item, if (x) on the Termination Date no Lease Event of Default or
Lease Default shall have occurred and be continuing hereunder, and (y) all Items
of Equipment then subject to this Lease Agreement have been returned to Lessor
on the Termination Date in the condition and at the locations required by
Section 6, and (z) this Lease

                                      -24-
<PAGE>   29

Agreement shall not have been terminated prior to the Termination Date or (ii)
Acquisition Cost of such Item, if (x) on the Termination Date a Lease Event of
Default or Lease Default shall have occurred and be continuing hereunder, or (y)
any Item of Equipment then subject to this Lease Agreement shall not have been
returned to Lessor on the Termination Date in the condition and at the locations
required by Section 6, or (z) this Lease Agreement shall have been terminated
prior to the Termination Date; provided, however, if Lessee pays all amounts due
for all Equipment in accordance with this clause (ii) on or prior to the
Termination Date, Lessor will at the cost of Lessee transfer to or at the
direction of Lessee, without recourse or warranty (except as to the absence of
Lessor Liens and Collateral Agent Liens), all of Lessor's right, title and
interest in and to such Item(s), "as-is", "where-is" and at the cost of Lessee
furnish to or at the direction of Lessee, if Lessee shall so request, a bill of
sale without recourse or warranty (except as to the absence of Lessor Liens and
Collateral Agent Liens) and otherwise in form and substance reasonably
satisfactory to Lessee and Lessor, evidencing such transfer. Lessee shall remain
liable for the payment of, and upon the consummation by Lessor of the sale of
any Item(s) of Equipment on or after the Termination Date, Lessee shall pay, or
reimburse Lessor for the payment of, all applicable sales, excise or other Taxes
imposed as a result of such sale, other than gross or net income taxes
attributable to such sale, and such obligation shall survive the termination of
this Lease Agreement.

                  29.3 Lessor Payment. If Lessor sells the Equipment after the
Termination Date, Lessor shall pay to Lessee, as an end of term Lease Payment
adjustment, the amount by which the Net Proceeds of Sale exceed the sum, without
duplication, of (prior to the application of such proceeds) (a) all amounts owed
by Lessor or Lessee to any Person under the Operative Documents as a result of
any Lease Default or Lease Event of Default, (b) the aggregate Acquisition Costs
of all Equipment as of the Termination Date, (c) all interest and Equity Yield
(including any interest and Equity Yield accrued at the respective Overdue Rate)
accrued on any Tranche A Note, Tranche B Loan and Equity Contribution since the
Termination Date and (d) all amounts owed to Lessor, if any under the Lessor
Margin Letter.

                  29.4 Excess Wear Lease Payment Adjustment. If after a sale of
any Item of Equipment to a third party under Section 28.3.3 in which the amount
of the Deficiency payable by Universal was limited by the Maximum Lessee Risk
Amount or upon redelivery of any Item of Equipment to Lessor upon termination of
the Lease it is determined by an Appraisal that such Item of Equipment suffered
from excess wear and tear, Lessee shall pay Lessor as an end of term Lease
Payment adjustment an amount equal to the lesser of (i) the reduction in fair
market value caused by such excess wear and tear and (ii) the amount by which
the difference between the Net Proceeds of Sale of such Item and the Acquisition
Cost therefor exceeded the Deficiency paid by Lessee in accordance with Section
29.1.

          30. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY
TRIAL. (a) THIS LEASE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS LEASE
AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF
THIS LEASE AGREEMENT, EACH OF LESSEE AND LESSOR HEREBY IRREVOCABLY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. LESSEE HEREBY IRREVOCABLY DESIGNATES,
APPOINTS AND EMPOWERS CT CORPORATION SYSTEM, WITH OFFICES ON THE DATE HEREOF AT
111 EIGHTH

                                      -25-
<PAGE>   30

AVENUE, NEW YORK 10011 AS ITS DESIGNEE, APPOINTEE AND AGENT TO RECEIVE, ACCEPT
AND ACKNOWLEDGE FOR AND ON ITS BEHALF, AND IN RESPECT OF ITS PROPERTY, SERVICE
OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED
IN ANY SUCH ACTION OR PROCEEDING. IF FOR ANY REASON SUCH DESIGNEE, APPOINTEE AND
AGENT SHALL CEASE TO BE AVAILABLE TO ACT AS SUCH, LESSEE AGREES TO DESIGNATE A
NEW DESIGNEE, APPOINTEE AND AGENT IN NEW YORK CITY ON THE TERMS AND FOR THE
PURPOSES OF THIS PROVISION SATISFACTORY TO LESSOR AND ASSIGNEE. EACH OF LESSEE
AND LESSOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF
THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT ITS
ADDRESS SET FORTH IN SECTION 12.4 OF THE PARTICIPATION AGREEMENT, SUCH SERVICE
TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE
RIGHT OF LESSEE OR LESSOR UNDER THIS LEASE AGREEMENT, TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST ANY PERSON IN ANY OTHER JURISDICTION.

                  (b) EACH OF LESSEE AND LESSOR HEREBY IRREVOCABLY WAIVES ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF
THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
LEASE AGREEMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY
FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT
THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM.

                  (c) EACH OF THE PARTIES TO THIS LEASE AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS LEASE AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

         31. Miscellaneous. Any provision of this Lease Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating or diminishing Lessor's rights under the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.
To the extent permitted by applicable law, Lessee hereby waives any provision of
law which renders any provision of this Lease Agreement prohibited or
unenforceable in any respect. No term or provision of this Lease Agreement may
be amended, altered, waived, discharged or terminated except in accordance with
Section 12.2 of the Participation Agreement. A waiver on any one occasion shall
not be construed as a waiver on a future occasion. Except as provided in Section
12.7 of the Participation Agreement, neither Lessee nor Lessor shall assign or
transfer its interests in this Lease Agreement. All of the covenants, conditions
and obligations contained in this Lease Agreement shall be binding upon and
shall inure to the benefit of the respective

                                      -26-
<PAGE>   31

successors and assigns of Lessor and (subject to the restrictions of Section 17)
Lessee. This Lease Agreement and the other Operative Documents, and each related
instrument, document, agreement and certificate, collectively constitute the
complete and exclusive statement of the terms of the agreement between Lessor
and Lessee with respect to the acquisition and leasing of the Equipment, and
cancel and supersede any and all prior oral or written understandings with
respect thereto.

         32. Registration. This Lease Agreement is a registered instrument.
Administrative Agent shall establish and maintain registration books in which it
will register, and register any assignment effected in compliance with Section
12.7 of the Participation Agreement of Lessor's interest in this Lease Agreement
or any portion thereof and which identifies each registered holder of any
interest of Lessor in this Lease Agreement or any portion thereof. Except for
the interests of Collateral Agent pursuant to the Operative Documents, no
transfer by Lessor of any interest in this Lease Agreement shall be effective
unless and until such transfer is made upon the registration books maintained by
Administrative Agent.

         33. Execution and Effectiveness. This Lease Agreement may be executed
in any number of identical counterparts, any set of which signed by all parties
hereto shall be deemed to constitute a complete, executed original for all
purposes and shall become effective when each of the parties hereto and each of
the parties to the Participation Agreement have executed and delivered this
Lease Agreement and the Participation Agreement as the case may be.

                                      -27-
<PAGE>   32

         IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement
to be duly executed by their duly authorized representatives as of the date
first above written.

                                     BRL UNIVERSAL EQUIPMENT 2001 A, L.P.,
                                        as Lessor

                                     By BRL Universal Equipment Management,
                                     Inc.
                                     Its General Partner

                                     By:   /s/ GREGORY C. GREENE
                                        --------------------------------------
                                        Name:  Gregory C. Greene
                                        Title: President

                                     UNIVERSAL COMPRESSION, INC.,
                                        as Lessee

                                     By:   /s/ RICHARD W. FITZGERALD
                                        --------------------------------------
                                        Name:  Richard W. FitzGerald
                                        Title: Senior Vice President and
                                               Chief Financial Officer

COUNTERPART NO. ___ OF ___ SERIALLY NUMBERED MANUALLY EXECUTED COUNTERPARTS. TO
THE EXTENT, IF ANY, THAT THIS DOCUMENT CONSTITUTES CHATTEL PAPER UNDER THE
UNIFORM COMMERCIAL CODE, NO SECURITY INTEREST IN THIS DOCUMENT MAY BE CREATED
THROUGH THE TRANSFER AND POSSESSION OF ANY COUNTERPART OTHER THAN COUNTERPART
NO. 1.

                                -Signature Page-
                          [Equipment Lease Agreement]

<PAGE>   33

                                                                    EXHIBIT A TO
                                                                 LEASE AGREEMENT

                                    [FORM OF]
                                LEASE SUPPLEMENT

                  This Lease Supplement (this "Supplement") is executed pursuant
to, and incorporates by reference all of the terms, conditions and provisions
of, the Equipment Lease Agreement dated as of February 9, 2001, between the
undersigned BRL Universal Equipment 2001 A, L.P., ("Lessor") and Universal
Compression, Inc. ("Lessee") (herein, as amended and supplemented from time to
time, called the "Lease Agreement"). All capitalized terms used herein which are
not defined herein shall have the meaning given to such terms in the Lease
Agreement.

         A.       SUPPLEMENT

                  Lessee hereby (i) acknowledges and certifies that each Item of
Equipment described below or on any Schedule attached hereto (each, an "Item"
and collectively, the "Equipment") has been selected by, delivered to Lessee,
and is located at the location set forth below, and as between Lessor and
Lessee, each Item identified as assembled is of a size, design, capacity and
manufacture acceptable to and suitable for Lessee's purposes, has been installed
to Lessee's satisfaction, and is in good working order, repair and condition and
(ii) unconditionally and irrevocably accepts each Item under the Lease Agreement
on the date hereof. Lessor and Lessee hereby agree that each Item described
below or on any Schedule attached hereto is hereby leased by Lessor to Lessee
under and subject to all of the terms, conditions and provisions of the Lease
Agreement, that the lease term of each such Item commences on the date hereof
and that such date is the Closing Date and that the Acquisition Cost, Term,
Maximum Lessee Risk Percentage, and Maximum Lessor Risk Percentage for all Items
of Equipment covered by this Lease Supplement are as set forth below. Lessee
hereby agrees to pay the Lease Payments for all Items covered by this Lease
Supplement in the amounts and at the times specified in Section 7 of the Lease
Agreement and as specified below, reaffirms its acknowledgments and agreements
in the Lease Agreement and certifies that its representations and warranties set
forth in Section 2 of the Participation Agreement and in any related certificate
delivered to Lessor are true and correct on the date hereof except to the extent
they relate to an earlier date, in which case such representations and
warranties were true and correct as of such date.

                  1.  Description of Item(s) of Equipment (include make, model
                      and unit number and whether such Item is completely
                      assembled and the estimated date assembly will be
                      completed): See Schedule 1 attached hereto.

                  2.  Location: See Schedule 1 attached hereto.

                  3.  Acquisition Cost: See Schedule 1 attached hereto

<PAGE>   34

                  4.  Tranche A Component: See Schedule 1 attached hereto

                  5.  Tranche B Component: See Schedule 1 attached hereto

                  6.  Equity Component: See Schedule 1 attached hereto

                  7.  Term: commencing on date hereof ("Closing Date") and
                      ending on [________________].

                  8.  Certain Values:

                  a.  Maximum Lessee Risk Percentage: ____% [not to exceed 90%]

                  b.  Maximum Lessor Risk Percentage: ____% [the difference
                                                             between 100% and
                                                             the percentage in
                                                             item 8a above ]

         B.       GRANT OF SECURITY INTEREST

                  The Lease Agreement and this Supplement constitute a financing
agreement intended as security. In consideration of the agreements contained
therein and in the Operative Documents, Lessee hereby grants, bargains, assigns,
transfers, conveys and pledges to Lessor a security interest in and Lien upon
all of its rights, title and interest in, to and under the Equipment, the
subleases related to such Equipment, Lessee's interest in any bill of sale and
in each manufacturer's, vendor's or dealer's warranty for the Equipment, and all
proceeds thereof, including, without limitation, all rentals, income and profits
in respect of the Items of Equipment, whether under such subleases or otherwise,
all credits granted by any manufacturer, vendor or dealer with respect to the
return of any Item of Equipment and the proceeds of any insurance payable with
respect to the Items of Equipment as collateral security for the payment and
performance by Lessee of obligations owed to Lessor under the Operative
Documents.

                                      -2-

<PAGE>   35

Dated: ____________, ____.

                                     BRL UNIVERSAL EQUIPMENT 2001 A, L.P.,
                                        as Lessor

                                     By BRL Universal Equipment Management,
                                     Inc.
                                     Its General Partner

                                     By:
                                        --------------------------------------
                                        Name:
                                        Title:

                                     UNIVERSAL COMPRESSION, INC.,
                                        Lessee

                                     By:
                                        --------------------------------------
                                        Name:
                                        Title:

                                      -3-

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