Document:

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                                                                   EXHIBIT 10.48

                                                                       EXHIBIT G

                                PLEDGE AGREEMENT

                  PLEDGE AGREEMENT (as amended, modified or supplemented from
time to time, this "Agreement"), dated as of May ___, 2000, made by each of the
undersigned pledgors (each a "Pledgor" and, together with any other entity that
becomes a pledgor hereunder pursuant to Section 24 hereof, the "Pledgors") to
BANKERS TRUST COMPANY, as Collateral Agent (the "Pledgee"), for the benefit of
the Secured Creditors (as defined below). Except as otherwise defined herein,
capitalized terms used herein and defined in the Credit Agreement (as defined
below) shall be used herein as therein defined.

                              W I T N E S S E T H :

                  WHEREAS, Universal Compression Holdings, Inc. ("Holdings"),
Universal Compression, Inc. (the "Borrower"), the lenders from time to time
party thereto (the "Lenders"), Deutsche Bank Securities Inc., as Lead Arranger
and Bankers Trust Company, as Administrative Agent (together with any successor
administrative agent, the "Administrative Agent"), have entered into a Credit
Agreement, dated as of May ___, 2000 (as amended, modified or supplemented from
time to time, the "Credit Agreement"), providing for the making of Loans to, and
the issuance of Letters of Credit for the account of, the Borrower as
contemplated therein (the Lenders, the Administrative Agent and the Pledgee are
herein called the "Lender Creditors");

                  WHEREAS, the Borrower may at any time and from time to time
enter into one or more Interest Rate Protection Agreements or Other Hedging
Agreements with one or more Lenders or any affiliate thereof (each such Lender
or affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender's or
affiliate's successors and assigns, if any, collectively, the "Other Creditors,"
and together with the Lender Creditors, the "Secured Creditors");

                  WHEREAS, pursuant to, and after the execution and delivery of,
the Subsidiary Guaranty, each Subsidiary Guarantor has jointly and severally
guarantied to the Secured Creditors the payment when due of all Guaranteed
Obligations as described therein;

                  WHEREAS, pursuant to the Holdings Guaranty, Holdings has
guarantied to the Secured Creditors the payment when due of all of the
Guaranteed Obligations as described therein;

                  WHEREAS, it is a condition to the making of Loans to, and the
issuance of Letters of Credit for the account of, the Borrower under the Credit
Agreement that each Pledgor shall have executed and delivered to the Pledgee
this Agreement; and

                  WHEREAS, each Pledgor desires to enter into this Agreement in
order to satisfy the condition described in the preceding paragraph;
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                  NOW, THEREFORE, in consideration of the foregoing and other
benefits accruing to each Pledgor, the receipt and sufficiency of which are
hereby acknowledged, each Pledgor hereby makes the following representations and
warranties to the Pledgee for the benefit of the Secured Creditors and hereby
covenants and agrees with the Pledgee for the benefit of the Secured Creditors
as follows:

                  1. SECURITY FOR OBLIGATIONS. This Agreement is made by each
Pledgor for the benefit of the Secured Creditors to secure:

                 (i) the full and prompt payment when due (whether at the stated
         maturity, by acceleration or otherwise) of all obligations and
         indebtedness (including, without limitation, indemnities, Fees and
         interest thereon) of such Pledgor to the Lender Creditors, whether now
         existing or hereafter incurred under, arising out of, or in connection
         with the Credit Documents to which such Pledgor is a party (including,
         in the case of each Guarantor, all such obligations and indebtedness of
         such Guarantor under its Guaranty) and the due performance and
         compliance by such Pledgor with all of the terms, conditions and
         agreements contained in the Credit Documents (all such obligations and
         liabilities under this clause (i), except to the extent consisting of
         obligations or indebtedness with respect to Interest Rate Protection
         Agreements or Other Hedging Agreements, being herein collectively
         called the "Credit Document Obligations");

                (ii) the full and prompt payment when due (whether at the stated
         maturity, by acceleration or otherwise) of all obligations and
         liabilities owing by such Pledgor to the Other Creditors under, or with
         respect to (including by reason of such Pledgor's Guaranty), any
         Interest Rate Protection Agreement or Other Hedging Agreement, whether
         such Interest Rate Protection Agreement or Other Hedging Agreement is
         now in existence or hereafter arising, and the due performance and
         compliance by such Pledgor with all of the terms, conditions and
         agreements contained therein (all such obligations and liabilities
         described in this clause (ii) being herein collectively called the
         "Other Obligations");

               (iii) any and all sums advanced by the Pledgee in accordance
         herewith in order to preserve the Collateral (as hereinafter defined)
         or preserve its security interest in the Collateral;

                (iv) in the event of any proceeding for the collection or
         enforcement of any indebtedness, obligations or liabilities of such
         Pledgor referred to in clauses (i), (ii) and (iii) above, after an
         Event of Default or any payment default by the Borrower under any
         Interest Rate Protection Agreement or Other Hedging Agreement shall
         have occurred and be continuing, the reasonable expenses of retaking,
         holding, preparing for sale or lease, selling or otherwise disposing of
         or realizing on the Collateral in accordance herewith, or of any
         exercise by the Pledgee of its rights hereunder, together with
         reasonable attorneys' fees and court costs; and

                 (v) all amounts paid by any Secured Creditor as to which such
         Secured Creditor has the right to reimbursement under Section 11 of
         this Agreement;
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all such obligations, liabilities, sums and expenses set forth in clauses (i)
through (v) of this Section 1 being herein collectively called the
"Obligations," it being acknowledged and agreed that the "Obligations" shall
include extensions of credit of the types described above, whether outstanding
on the date of this Agreement or extended from time to time after the date of
this Agreement.

                  2. DEFINITION OF STOCK, NOTES, SECURITIES, PARTNERSHIP
INTERESTS, ETC. (a) As used herein, (i) the term "Stock" shall mean (x) with
respect to corporations incorporated under the laws of the United States or any
state or territory thereof (each, a "Domestic Corporation"), all of the issued
and outstanding shares of capital stock, and all warrants and options to
purchase any such capital stock, of any Domestic Corporation at any time owned
by any Pledgor and (y) with respect to corporations not Domestic Corporations
(each, a "Foreign Corporation"), all of the issued and outstanding shares of
capital stock, and all warrants and options to purchase any such capital stock,
of any Foreign Corporation at any time owned by any Pledgor, provided that,
except as provided in the last sentence of this Section 2, such Pledgor shall
not be required to pledge hereunder more than 65% of the total combined voting
power of all classes of capital stock of any Foreign Corporation entitled to
vote, (ii) the term "Notes" shall mean all Intercompany Notes and all other
promissory notes or other evidences of indebtedness from time to time issued to,
or held by, any Pledgor, provided that, except as provided in the last sentence
of this Section 2, such Pledgor shall not be required to pledge hereunder any
promissory notes (including Intercompany Notes) issued to such Pledgor by any
Subsidiary of such Pledgor which is a Foreign Corporation and (iii) the term
"Securities" shall mean all of the Stock and Notes. Each Pledgor represents and
warrants, that on the date hereof, (A) the Stock held by such Pledgor consists
of the number and type of shares of the stock of the corporations as described
in Annex A hereto for such Pledgor, (B) such Stock constitutes that percentage
of the issued and outstanding capital stock of the issuing corporation as is set
forth in Annex A hereto, (C) the Notes held by such Pledgor consist of the
promissory notes described in Annex B hereto for such Pledgor, (D) such Pledgor
is the holder of record and sole beneficial owner of the Stock and the Notes
held by such Pledgor and (E) on the date hereof, such Pledgor owns no other
Securities. In the circumstances and to the extent provided in Section 8.12 of
the Credit Agreement, the 65% limitation set forth in the proviso of clause
(i)(y) and the limitation in the proviso of clause (ii) in each case of the
first sentence of this Section 2 and in Section 3.2 hereof shall no longer be
applicable and such Pledgor shall duly pledge and deliver to the Pledgee such of
the Securities not theretofore required to be pledged hereunder.

                  (b) As used herein, the term "Partnership Interest" shall mean
the entire partnership interests (whether general and/or limited partnership
interests) at any time owned by each Pledgor in any Person (each a "Pledged
Partnership"). Each Pledgor represents and warrants that, on the date hereof,
(A) the Partnership Interests held by such Pledgor constitutes that percentage
of the entire partnership interest of the respective Pledged Partnership as is
set forth on Annex C hereto for such Pledgor and (B) such Pledgor owns no other
Partnership Interests.

                  (c) All Stock at any time pledged or required to be pledged
hereunder is hereinafter called the "Pledged Stock;" all Notes at any time
pledged or required to be pledged hereunder are hereinafter called the "Pledged
Notes;" all Pledged Stock and Pledged Notes
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together are called the "Pledged Securities;" all Partnership Interests at any
time pledged or required to be pledged hereunder are hereinafter called the
"Pledged Partnership Interests", and the Pledged Securities and the Pledged
Partnership Interests, together with all proceeds thereof, including any
securities and moneys received and at the time held by the Pledgee hereunder,
are hereinafter called the "Collateral."

                  3.  PLEDGE OF SECURITIES, ETC.

                  3.1. Pledge. (a) To secure the Obligations of such Pledgor and
for the purposes set forth in Section 1 hereof, each Pledgor hereby (i) grants
to the Pledgee a security interest in all of the Collateral owned by such
Pledgor, (ii) pledges and deposits as security with the Pledgee, the Securities
owned by such Pledgor on the date hereof, and delivers to the Pledgee
certificates or instruments therefor, duly endorsed in blank by such Pledgor in
the case of Notes and accompanied by undated stock powers duly executed in blank
by such Pledgor (and accompanied by any transfer tax stamps required in
connection with the pledge of such Securities) in the case of Stock, or such
other instruments of transfer as are reasonably acceptable to the Pledgee, (iii)
assigns, transfers, hypothecates, mortgages, charges and sets over to the
Pledgee all of such Pledgor's right, title and interest in and to such
Securities (and in and to the certificates or instruments evidencing such
Securities), to be held by the Pledgee upon the terms and conditions set forth
in this Agreement and (iv) transfers and assigns to the Pledgee such Pledgor's
Partnership Interests (and delivers any certificates or instruments evidencing
such partnership interests, duly endorsed in blank) and all of such Pledgor's
right, title and interest in each Pledged Partnership including, without
limitation:

                 (i) all of the capital thereof and its interest in all profits,
         losses, Partnership Assets (as defined below) and other distributions
         to which such Pledgor shall at any time be entitled in respect of any
         such Collateral;

                (ii) all other payments due or to become due to such Pledgor in
         respect of any such Collateral, whether under any partnership agreement
         or otherwise, whether as contractual obligations, damages, insurance
         proceeds or otherwise;

               (iii) all of its claims, rights, powers, privileges, authority,
         options, security interest, liens and remedies, if any, under any
         partnership or other agreement or at law or otherwise in respect of any
         such Collateral;

                (iv) all present and future claims, if any, of such Pledgor
         against any Pledged Partnership for moneys loaned or advanced, for
         services rendered or otherwise;

                 (v) all of such Pledgor's rights under any partnership
         agreement or at law to exercise and enforce every right, power, remedy,
         authority, option and privilege of such Pledgor relating to any
         Partnership Interest, including any power, if any, to terminate, cancel
         or modify any general or limited partnership agreement, to execute any
         instruments and to take any and all other action on behalf of and in
         the name of such Pledgor in respect of such Partnership Interest and
         any Pledged Partnership, to make determinations, to exercise any
         election (including, but not limited to, election of
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         remedies) or option or to give or receive any notice, consent,
         amendment, waiver or approval, together with full power and authority
         to demand, receive, enforce, collect, or receipt for any of the
         foregoing or for any Partnership Asset (as hereinafter defined), to
         enforce or execute any checks, or other instruments or orders, to file
         any claims and to take any action in connection with any of the
         foregoing;

                (vi) all other property hereafter delivered in substitution for
         or in addition to any of the foregoing, all certificates and
         instruments representing or evidencing such other property and all
         cash, securities, interest, dividends, distributions, rights and other
         property at any time and from time to time received, receivable or
         otherwise distributed in respect of or in exchange for any or all
         thereof; and

                (vii) to the extent not otherwise included, all proceeds of
         any or all of the foregoing.

                  (b) As used herein, the term "Partnership Assets" shall mean
all assets, whether tangible or intangible and whether real, personal or mixed
(including, without limitation, all partnership capital and interests in other
partnerships), at any time owned by any Pledged Partnership or represented by
any Partnership Interest.

                  3.2. Subsequently Acquired Securities and/or Partnership
Interests. (a) If any Pledgor shall acquire (by purchase, stock dividend or
otherwise) any additional Securities at any time or from time to time after the
date hereof, such Pledgor will promptly thereafter deposit such Securities (or
certificates or instruments representing such Securities) as security with the
Pledgee and deliver to the Pledgee certificates or instruments therefor, duly
endorsed in blank in the case of such Notes, and accompanied by undated stock
powers duly executed in blank by such Pledgor (and accompanied by any transfer
tax stamps required in connection with the pledge of such Securities) in the
case of such Stock, or such other instruments of transfer as are reasonably
acceptable to the Pledgee, and will promptly thereafter deliver to the Pledgee a
certificate or letter executed by a principal executive officer of such Pledgor
describing such Securities and certifying that the same has been duly pledged
with the Pledgee hereunder. Subject to the last sentence of Section 2 hereof, no
Pledgor shall be required at any time to pledge hereunder (x) any Stock which is
more than 65% of the total combined voting power of all classes of capital stock
of any Foreign Corporation entitled to vote or (y) any promissory notes
(including Intercompany Notes) issued to such Pledgor by any Subsidiary of such
Pledgor which is a Foreign Corporation.

                  (b) If any Pledgor shall acquire (by purchase, distribution or
otherwise) any additional Partnership Interest at any time or from time to time
after the date hereof, and, to the extent such Partnership Interest is
certificated, such Pledgor shall forthwith deliver to the Pledgee certificates
therefor, accompanied by such instruments of transfer as are acceptable to the
Pledgee, and shall promptly thereafter deliver to the Pledgee a certificate or
letter executed by a principal executive officer of such Pledgor describing such
Partnership Interest and certifying that the same has been duly pledged with the
Pledgee hereunder.
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                  3.3. Uncertificated Securities and Partnership Interests.
Notwithstanding anything to the contrary contained in Sections 3.1 and 3.2
hereof, if any Securities (whether now owned or hereafter acquired) or
Partnership Interests are uncertificated securities, the relevant Pledgor shall
promptly notify the Pledgee thereof, and shall promptly take all actions
required to perfect the security interest of the Pledgee under applicable law
(including, in any event, under the applicable provisions of the New York
Uniform Commercial Code). Each Pledgor further agrees to take such actions as
the Pledgee deems necessary or reasonably desirable to effect the foregoing and
to permit the Pledgee to exercise any of its rights and remedies hereunder, and
agrees to provide an opinion of counsel reasonably satisfactory to the Pledgee
with respect to any such pledge of uncertificated Securities promptly upon the
reasonable request of the Pledgee.

                  4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. If and to the
extent necessary to enable the Pledgee to perfect its security interest in any
of the Collateral or to exercise any of its remedies hereunder, the Pledgee
shall have the right, upon written notice to the Borrower (provided that no such
notice shall be required to the extent that same may not be permitted to be
given under applicable law), to appoint one or more sub-agents for the purpose
of retaining physical possession of the Pledged Securities or Pledged
Partnership Interests, which may be held (in the discretion of the Pledgee) in
the name of the relevant Pledgor, endorsed or assigned in blank or in favor of
the Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed
by the Pledgee.

                  5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until
there shall have occurred and be continuing an Event of Default, each Pledgor
shall be entitled to exercise any and all (i) voting and other consensual rights
pertaining to the Pledged Securities owned by it, and to give consents, waivers
or ratifications in respect thereof, and (ii) voting, consent, administration,
management and other rights and remedies under any partnership agreement or
otherwise with respect to the Pledged Partnership Interests of such Pledgor;
provided, that, in each case, no vote shall be cast or any consent, waiver or
ratification given or any action taken or omitted to be taken which would
violate or be inconsistent with any of the terms of this Agreement, the Credit
Agreement, any other Credit Document or any Interest Rate Protection Agreement
or Other Hedging Agreement (collectively, the "Secured Debt Agreements"), or
which would have the effect of impairing the value of the Collateral or any part
thereof or the position or interests of the Pledgee or any other Secured
Creditor in the Collateral. All such rights of each Pledgor to vote and to give
consents, waivers and ratifications shall cease in case an Event of Default has
occurred and is continuing, and Section 7 hereof shall become applicable.

                  6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until there
shall have occurred and be continuing an Event of Default, (i) all cash
dividends and distributions payable in respect of the Pledged Stock and all
payments in respect of the Pledged Notes shall be paid to the respective Pledgor
and (ii) all cash distributions payable in respect of the Pledged Partnership
Interests shall be paid to the respective Pledgor. The Pledgee shall be entitled
to receive directly, and to retain as part of the Collateral:
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                 (i) all other or additional stock or other securities or
         partnership interests (other than cash) paid or distributed by way of
         dividend, distribution or otherwise in respect of the Collateral;

                (ii) all other or additional stock or other securities or
         partnership interests paid or distributed in respect of the Collateral
         by way of merger, consolidation, conveyance of assets, liquidation,
         exchange of stock, stock-split, spin-off, split-up, reclassification,
         combination of shares or similar rearrangement; and

               (iii) all other property (other than cash) paid or distributed by
         way of dividend or distribution in respect of the Collateral.

Nothing contained in this Section 6 shall limit or restrict in any way the
Pledgee's right to receive proceeds of the Collateral in any form in accordance
with Section 3 of this Agreement. All dividends, distributions or other payments
which are received by any Pledgor contrary to the provisions of this Section 6
and Section 7 hereof shall be received in trust for the benefit of the Pledgee,
shall be segregated from other property or funds of such Pledgor and shall be
forthwith paid over to the Pledgee as Collateral in the same form as so received
(with any necessary endorsement).

                  7. REMEDIES IN CASE OF DEFAULT OR EVENT OF DEFAULT. If there
shall have occurred and be continuing an Event of Default, then and in every
such case, the Pledgee shall be entitled to exercise all of the rights, powers
and remedies (whether vested in it by this Agreement, any other Secured Debt
Agreement or by law) for the protection and enforcement of its rights in respect
of the Collateral, and the Pledgee shall be entitled to exercise all the rights
and remedies of a secured party under the Uniform Commercial Code and also shall
be entitled, without limitation, to exercise the following rights:

                  (a) to receive all amounts payable in respect of the
         Collateral otherwise payable under Section 6 hereof to the respective
         Pledgor;

                  (b) to transfer all or any part of the Collateral into the
         Pledgee's name or the name of its nominee or nominees;

                  (c) to accelerate any Pledged Note which may be accelerated in
         accordance with its terms, and take any other lawful action to collect
         upon any Pledged Note (including, without limitation, to make any
         demand for payment thereon);

                  (d) to vote all or any part of the Pledged Stock or Pledged
         Partnership Interests (whether or not transferred into the name of the
         Pledgee) and give all consents, waivers and ratifications in respect of
         the Collateral and otherwise act with respect thereto as though it were
         the outright owner thereof (each Pledgor hereby irrevocably
         constituting and appointing the Pledgee the proxy and attorney-in-fact
         of such Pledgor, with full power of substitution to do so); and

                  (e) at any time and from time to time to sell, assign and
         deliver, or grant options to purchase, all or any part of the
         Collateral, or any interest therein, at any public or
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         private sale, without demand of performance, advertisement or notice of
         intention to sell or of the time or place of sale or adjournment
         thereof or to redeem or otherwise (all of which are hereby waived by
         each Pledgor), for cash, on credit or for other property, for immediate
         or future delivery without any assumption of credit risk, and for such
         price or prices and on such terms as the Pledgee in its absolute
         discretion may determine, provided that at least 10 days' written
         notice of the time and place of any such sale shall be given to the
         respective Pledgor. The Pledgee shall not be obligated to make any such
         sale of Collateral regardless of whether any such notice of sale has
         theretofore been given. Each Pledgor hereby waives and releases to the
         fullest extent permitted by law any right or equity of redemption with
         respect to the Collateral, whether before or after sale hereunder, and
         all rights, if any, of marshalling the Collateral and any other
         security for the Obligations or otherwise. At any such sale, unless
         prohibited by applicable law, the Pledgee on behalf of the Secured
         Creditors may bid for and purchase all or any part of the Collateral so
         sold free from any such right or equity of redemption. Neither the
         Pledgee nor any other Secured Creditor shall be liable for failure to
         collect or realize upon any or all of the Collateral or for any delay
         in so doing nor shall any of them be under any obligation to take any
         action whatsoever with regard thereto.

                  8. REMEDIES, ETC., CUMULATIVE. Each and every right, power and
remedy of the Pledgee provided for in this Agreement or in any other Secured
Debt Agreement, or now or hereafter existing at law or in equity or by statute
shall be cumulative and concurrent and shall be in addition to every other such
right, power or remedy. The exercise or beginning of the exercise by the Pledgee
or any other Secured Creditor of any one or more of the rights, powers or
remedies provided for in this Agreement or in any other Secured Debt Agreement
or now or hereafter existing at law or in equity or by statute or otherwise
shall not preclude the simultaneous or later exercise by the Pledgee or any
other Secured Creditor of all such other rights, powers or remedies, and no
failure or delay on the part of the Pledgee or any other Secured Creditor to
exercise any such right, power or remedy shall operate as a waiver thereof. No
notice to or demand on any Pledgor in any case shall entitle it to any other or
further notice or demand in similar or other circumstances or constitute a
waiver of any of the rights of the Pledgee or any other Secured Creditor to any
other or further action in any circumstances without notice or demand. The
Secured Creditors agree that this Agreement may be enforced only by the action
of the Pledgee, in each case acting upon the instructions of the Required
Secured Creditors (as defined in the Security Agreement) and that no other
Secured Creditor shall have any right individually to seek to enforce or to
enforce this Agreement or to realize upon the security to be granted hereby, it
being understood and agreed that such rights and remedies may be exercised by
the Pledgee or the holders of at least a majority of the outstanding Other
Obligations, as the case may be, for the benefit of the Secured Creditors upon
the terms of this Agreement.

                  9. APPLICATION OF PROCEEDS. (a) All moneys collected by the
Pledgee upon any sale or other disposition of the Collateral pursuant to the
terms of this Agreement, together with all other moneys received by the Pledgee
hereunder, shall be applied in the manner provided in Section 7.4 of the
Security Agreement.
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                  (b) It is understood and agreed that the Pledgors shall remain
jointly and severally liable to the extent of any deficiency between the amount
of the proceeds of the Collateral hereunder and the aggregate amount of the
Obligations.

                  10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral
by the Pledgee hereunder (whether by virtue of the power of sale herein granted,
pursuant to judicial process or otherwise), the receipt of the Pledgee or the
officer making the sale shall be sufficient discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall not
be obligated to see to the application of any part of the purchase money paid
over to the Pledgee or such officer or be answerable in any way for the
misapplication or nonapplication thereof.

                  11. INDEMNITY. Each Pledgor jointly and severally agrees (i)
to indemnify and hold harmless the Pledgee in such capacity and each other
Secured Creditor and their respective successors, assigns, employees, agents and
servants (individually an "Indemnitee," and collectively the "Indemnitees") from
and against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) of whatsoever kind or nature, and (ii) to
reimburse each Indemnitee for all costs and expenses, including reasonable
attorneys' fees, in each case growing out of or resulting from this Agreement or
the exercise by any Indemnitee of any right or remedy granted to it hereunder or
under any other Secured Debt Agreement (but excluding any claims, demands,
losses, judgments and liabilities or expenses to the extent incurred by reason
of gross negligence or willful misconduct of any Indemnitee). In no event shall
the Pledgee be liable, in the absence of gross negligence or willful misconduct
on its part, for any matter or thing in connection with this Agreement other
than to account for monies actually received by it in accordance with the terms
hereof. If and to the extent that the obligations of any Pledgor under this
Section 11 are unenforceable for any reason, such Pledgor hereby agrees to make
the maximum contribution to the payment and satisfaction of such obligations
which is permissible under applicable law.

                  12. PLEDGEE NOT BOUND. (a) Nothing herein shall be construed
to make the Pledgee or any other Secured Creditor liable as a general partner or
limited partner of any Pledged Partnership and the Pledgee or any other Secured
Creditor by virtue of this Agreement or otherwise (except as referred to in the
following sentence) shall not have any of the duties, obligations or liabilities
of a general partner or limited partner of any Pledged Partnership. The parties
hereto expressly agree that, unless the Pledgee shall become the absolute owner
of a Pledged Partnership Interest pursuant hereto, this Agreement shall not be
construed as creating a partnership or joint venture among the Pledgee, any
other Secured Creditor and/or any Pledgor.

                  (b) Except as provided in the last sentence of paragraph (a)
of this Section, the Pledgee, by accepting this Agreement, did not intend to
become a general partner or limited partner of any Pledged Partnership or
otherwise be deemed to be a co-venturer with respect to any Pledgor or any
Pledged Partnership either before or after an Event of Default shall have
occurred. The Pledgee shall have only those powers set forth herein and shall
assume none of the duties, obligations or liabilities of a general partner or
limited partner of any Pledged Partnership or of any Pledgor.
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                  (c) The Pledgee shall not be obligated to perform or discharge
any obligation of any Pledgor as a result of the collateral assignment hereby
effected.

                  (d) The acceptance by the Pledgee of this Agreement, with all
the rights, powers, privileges and authority so created, shall not at any time
or in any event obligate the Pledgee to appear in or defend any action or
proceeding relating to the Collateral to which it is not a party, or to take any
action hereunder or thereunder, or to expend any money or incur any expenses or
perform or discharge any obligation, duty or liability under the Collateral.

                  13. FURTHER ASSURANCES; POWER-OF-ATTORNEY. (a) Each Pledgor
agrees that it will join with the Pledgee in executing and, at such Pledgor's
own expense, file and refile under the Uniform Commercial Code or other
applicable law such financing statements, continuation statements and other
documents in such offices as the Pledgee may deem necessary and wherever
required by law in order to perfect and preserve the Pledgee's security interest
in the Collateral and hereby authorizes the Pledgee to file financing statements
and amendments thereto relative to all or any part of the Collateral without the
signature of such Pledgor where permitted by law, and agrees to do such further
acts and things and to execute and deliver to the Pledgee such additional
conveyances, assignments, agreements and instruments as the Pledgee may
reasonably require or deem necessary to carry into effect the purposes of this
Agreement or to further assure and confirm unto the Pledgee its rights, powers
and remedies hereunder.

                  (b) Each Pledgor hereby appoints the Pledgee such Pledgor's
attorney-in-fact, with full authority in the place and stead of such Pledgor and
in the name of such Pledgor or otherwise, to act from time to time solely after
the occurrence and during the continuance of an Event of Default in the
Pledgee's reasonable discretion to take any action and to execute any instrument
which the Pledgee may deem necessary or advisable to accomplish the purposes of
this Agreement.

                  14. THE PLEDGEE AS AGENT. The Pledgee will hold in accordance
with this Agreement all items of the Collateral at any time received under this
Agreement. It is expressly understood and agreed by each Secured Creditor that
by accepting the benefits of this Agreement each such Secured Creditor
acknowledges and agrees that the obligations of the Pledgee as holder of the
Collateral and interests therein and with respect to the disposition thereof,
and otherwise under this Agreement, are only those expressly set forth in this
Agreement. The Pledgee shall act hereunder on the terms and conditions set forth
herein and in Section 12 of the Credit Agreement.

                  15. TRANSFER BY THE PLEDGORS. No Pledgor will sell or
otherwise dispose of, grant any option with respect to, or mortgage, pledge or
otherwise encumber any of the Collateral or any interest therein (except as may
be permitted in accordance with the terms of the Credit Agreement).

                  16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS.
Each Pledgor represents, warrants and covenants that (i) it is the legal, record
and beneficial owner of all Pledged Securities and Pledged Partnership Interests
pledged by it hereunder, subject to no Lien (except the Lien created by this
Agreement and any Permitted
<PAGE>   11
                                                                       EXHIBIT G
                                                                         Page 11

Liens); (ii) it has full power, authority and legal right to pledge all the
Pledged Securities and Pledged Partnership Interests pledged by it pursuant to
this Agreement; (iii) this Agreement has been duly authorized, executed and
delivered by such Pledgor and constitutes a legal, valid and binding obligation
of such Pledgor enforceable in accordance with its terms except to the extent
that the enforceability hereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting
creditors' rights and by equitable principles (regardless of whether enforcement
is sought in equity or at law); (iv) except as have been obtained by the
Pledgors as of the date hereof, no consent of any other party (including,
without limitation, any stockholder, partner or creditor of such Pledgor or any
of its Subsidiaries or any Pledged Partnership) and no consent, license, permit,
approval or authorization of, exemption by, notice or report to, or
registration, filing or declaration with, any governmental authority is required
to be obtained by such Pledgor in connection with the execution, delivery or
performance of this Agreement, the validity or enforceability of this Agreement,
the perfection or enforceability of the Pledgee's security interest in the
Collateral or, except for compliance with or as may be required by applicable
securities laws, the exercise by the Pledgee of any of its rights or remedies
provided herein; (v) the execution, delivery and performance of this Agreement
by such Pledgor will not violate any provision of any applicable law or
regulation or of any order, judgment, writ, award or decree of any court,
arbitrator or governmental authority, domestic or foreign, applicable to such
Pledgor, or of the certificate of incorporation or by-laws (or equivalent
organizational documents) of such Pledgor or of any securities issued by such
Pledgor or any of its Subsidiaries, or of any mortgage, indenture, lease, deed
of trust, loan agreement, credit agreement or other material contract, agreement
or instrument or undertaking to which such Pledgor or any of its Subsidiaries is
a party or which purports to be binding upon such Pledgor or any of its
Subsidiaries or upon any of their respective assets and will not result in the
creation or imposition of (or the obligation to create or impose) any lien or
encumbrance on any of the assets of such Pledgor or any of its Subsidiaries
except as contemplated by this Agreement; (vi) all the shares of Stock have been
duly and validly issued, are fully paid and non-assessable and are subject to no
options to purchase or similar rights; (vii) each of the Intercompany Notes
constituting Pledged Notes constitutes, or when executed by the obligor thereof
will constitute, the legal, valid and binding obligation of such obligor,
enforceable in accordance with its terms except to the extent that the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors'
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law); (viii) the pledge, assignment and delivery to the Pledgee
of the Securities (other than uncertificated securities) pursuant to this
Agreement creates a valid and perfected first priority Lien in the Securities,
and the proceeds thereof, subject to no other Lien or to any agreement
purporting to grant to any third party a Lien on the Securities; (ix) each such
Pledged Partnership Interest has been validly acquired and is fully paid for (to
the extent applicable) and is duly and validly pledged hereunder; (x) each
general or limited partnership agreement delivered to the Pledgee is an original
signed counterpart (or a copy thereof) of the complete and entire such
partnership agreement in effect on the date hereof; (xi) each partnership
agreement is the legal, valid and binding obligation of each Pledgor,
enforceable in accordance with its terms except to the extent that the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors'
rights and by equitable principles (regardless of whether
<PAGE>   12
                                                                       EXHIBIT G
                                                                         Page 12

enforcement is sought in equity or at law); (xii) no Pledgor is in default in
the payment of any portion of any mandatory capital contribution, if any,
required to be made under any general or limited partnership agreement to which
such Pledgor is a party, and no Pledgor is in violation of any other material
provisions of any partnership agreement to which such Pledgor is a party, or
otherwise in default or violation thereunder; (xiii) no Pledged Partnership
Interest is, to the knowledge of such Pledgor (but only in the case of a
partnership which is not a Subsidiary of such Pledgor), subject to any defense,
offset or counterclaim, nor have any of the foregoing been asserted or alleged
against such Pledgor by any Person with respect thereto; (xiv) the pledge and
assignment of the Pledged Partnership Interests pursuant to this Agreement,
together with the relevant filings or recordings under the UCC (which filings
and recordings have been or will be made), creates a valid, perfected and
continuing first priority security interest in such Partnership Interests and
the proceeds thereof, subject to no prior lien or encumbrance or to any
agreement purporting to grant to any third party a lien or encumbrance on such
Partnership Interests; (xv) there are no currently effective financing
statements under the UCC covering any property which is now or hereafter may be
included in the Collateral and such Pledgor will not, without the prior written
consent of the Pledgee, execute and, until the Termination Date (as hereinafter
defined), there will not ever be on file in any public office any enforceable
financing statement or statements covering any or all of the Collateral, except
financing statements filed or to be filed in favor of the Pledgee as secured
party; (xvi) each Pledgor shall give the Pledgee prompt notice of any written
claim it receives relating to the Collateral; (xvii) each Pledgor shall deliver
to the Pledgee a copy of each other demand, notice or document received by it
which may adversely affect the Pledgee's interest in the Collateral promptly
upon, but in any event within 10 days after, such Pledgor's receipt thereof;
(xviii) a notice in the form set forth in Annex D attached hereto and by this
reference made a part hereof (such notice the "Partnership Notice"),
appropriately completed, notifying each Pledged Partnership of the existence of
this Agreement and a certified copy of this Agreement have been delivered by
each Pledgor to the relevant Pledged Partnership, and each such Pledgor has
received and delivered to the Collateral Agent an acknowledgment in the form set
forth in Annex E attached hereto (such acknowledgment, the "Partnership
Acknowledgment"), duly executed by the relevant Pledged Partnership; and (xix)
the chief executive office of such Pledgor is set forth on Annex F hereto or
such other office as such Pledgor may establish in accordance with the terms of
the Security Agreement. Each Pledgor covenants and agrees that it will defend
the Pledgee's right, title and security interest in and to the Collateral
against the claims and demands of all persons whomsoever; and such Pledgor
covenants and agrees that it will have like title to and right to pledge any
other property at any time hereafter pledged to the Pledgee as Collateral
hereunder and will likewise defend the right thereto and security interest
therein of the Pledgee and the other Secured Creditors.

                  17. PLEDGORS' OBLIGATIONS ABSOLUTE, ETC. The obligations of
each Pledgor under this Agreement shall be absolute and unconditional and shall
remain in full force and effect without regard to, and shall not be released,
suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation: (i) any renewal,
extension, amendment or modification of or addition or supplement to or deletion
from any Secured Debt Agreement or any other instrument or agreement referred to
therein, or any assignment or transfer of any thereof; (ii) any waiver, consent,
extension, indulgence or other action or inaction under or in respect of any
such agreement or instrument
<PAGE>   13
                                                                       EXHIBIT G
                                                                         Page 13

including, without limitation, this Agreement; (iii) any furnishing of any
additional security to the Pledgee or its assignee or any acceptance thereof or
any release of any security by the Pledgee or its assignee; (iv) any limitation
on any party's liability or obligations under any such instrument or agreement
or any invalidity or unenforceability, in whole or in part, of any such
instrument or agreement or any term thereof; or (v) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to any Pledgor or any Subsidiary of any Pledgor, or any
action taken with respect to this Agreement by any trustee or receiver, or by
any court, in any such proceeding, whether or not such Pledgor shall have notice
or knowledge of any of the foregoing.

                  18. REGISTRATION, ETC. (a) If there shall have occurred and be
continuing an Event of Default then, and in every such case, upon receipt by any
Pledgor from the Pledgee of a written request or requests that such Pledgor
cause any registration, qualification or compliance under any Federal or state
securities law or laws to be effected with respect to all or any part of the
Pledged Stock, such Pledgor as soon as practicable and at its expense will cause
such registration to be effected (and be kept effective) and will cause such
qualification and compliance to be declared effected (and be kept effective) as
may be so requested and as would permit or facilitate the sale and distribution
of such Pledged Stock, including, without limitation, registration under the
Securities Act of 1933, as then in effect (or any similar statute then in
effect), appropriate qualifications under applicable blue sky or other state
securities laws and appropriate compliance with any other government
requirements, provided, that the Pledgee shall furnish to such Pledgor such
information regarding the Pledgee as such Pledgor may reasonably request in
writing and as shall be required in connection with any such registration,
qualification or compliance. Such Pledgor will cause the Pledgee to be kept
advised in writing as to the progress of each such registration, qualification
or compliance and as to the completion thereof, will furnish to the Pledgee such
number of prospectuses, offering circulars or other documents incident thereto
as the Pledgee from time to time may reasonably request, and will indemnify the
Pledgee, each other Secured Creditor and all others participating in the
distribution of such Pledged Stock against all claims, losses, damages and
liabilities caused by any untrue statement (or alleged untrue statement) of a
material fact contained therein (or in any related registration statement,
notification or the like) or by any omission (or alleged omission) to state
therein (or in any related registration statement, notification or the like) a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same may have been caused by an
untrue statement or omission based upon information furnished in writing to such
Pledgor by the Pledgee or such other Secured Creditor expressly for use therein.

                  (b) If at any time when the Pledgee shall determine to
exercise its right to sell all or any part of the Pledged Securities or Pledged
Partnership Interests pursuant to Section 7 hereof, and such Pledged Securities
or Pledged Partnership Interests or the part thereof to be sold shall not, for
any reason whatsoever, be effectively registered under the Securities Act of
1933, as then in effect, the Pledgee may, in its sole and absolute discretion
but subject to applicable law, sell such Pledged Securities or Pledged
Partnership Interests, as the case may be, or part thereof by private sale in
such manner and under such circumstances as the Pledgee may deem necessary or
advisable in order that such sale may legally be effected without such
registration. Without limiting the generality of the foregoing, in any such
event the Pledgee, in its sole and absolute discretion (i) may proceed to make
such private sale notwithstanding that a registration statement
<PAGE>   14
                                                                       EXHIBIT G
                                                                         Page 14

for the purpose of registering such Pledged Securities or Pledged Partnership
Interests or part thereof shall have been filed under such Securities Act, (ii)
may approach and negotiate with a single possible purchaser to effect such sale,
and (iii) may restrict such sale to a purchaser who will represent and agree
that such purchaser is purchasing for its own account, for investment, and not
with a view to the distribution or sale of such Pledged Securities or Pledged
Partnership Interests or part thereof. In the event of any such sale, the
Pledgee shall incur no responsibility or liability for selling all or any part
of the Pledged Securities or Pledged Partnership Interests in accordance with
Section 18 at a price which the Pledgee, in its sole and absolute discretion, in
good faith deems reasonable under the circumstances, notwithstanding the
possibility that a substantially higher price might be realized if the sale were
deferred until after registration as aforesaid.

                  19. TERMINATION; RELEASE. (a) After the Termination Date (as
defined below), this Agreement and the security interest created hereby shall
terminate (provided that all indemnities set forth herein including, without
limitation, in Section 11 hereof shall survive any such termination), and the
Pledgee, at the request and expense of any Pledgor, will execute and deliver to
such Pledgor a proper instrument or instruments acknowledging the satisfaction
and termination of this Agreement, and will duly assign, transfer and deliver to
such Pledgor (without recourse and without any representation or warranty) such
of the Collateral as has not theretofore been sold or otherwise applied or
released pursuant to this Agreement, together with any monies at the time held
by the Pledgee or any of its sub-agents hereunder. As used in this Agreement,
"Termination Date" shall mean the date upon which the Total Commitment and all
Interest Rate Protection Agreements or Other Hedging Agreements have been
terminated, no Note under the Credit Agreement is outstanding (and all Loans
have been repaid in full), all Letters of Credit have been terminated and all
Obligations then owing have been paid in full.

                  (b) In the event that any part of the Collateral is sold in
connection with a sale permitted by Section 9.02 of the Credit Agreement (other
than a sale to any Pledgor or any Subsidiary thereof) or is otherwise released
at the direction of the Required Secured Creditors and the proceeds of such sale
or sales or from such release are applied in accordance with the provisions of
the Credit Agreement, to the extent required to be so applied, the Pledgee, at
the request and expense of any Pledgor, will duly assign, transfer and deliver
to such Pledgor (without recourse and without any representation or warranty)
such of the Collateral (and releases therefor) as is then being (or has been) so
sold or released and has not theretofore been released pursuant to this
Agreement.

                  (c) At any time that a Pledgor desires that the Pledgee
assign, transfer and deliver Collateral (and releases therefor) as provided in
Section 19(a) or (b) hereof, it shall deliver to the Pledgee a certificate
signed by a principal executive officer of such Pledgor stating that the release
of the respective Collateral is permitted pursuant to such Section 19(a) or (b).

                  (d) The Pledgee shall have no liability whatsoever to any
other Secured Creditor as the result of any release of Collateral by it in
accordance with this Section 19.

                  20. NOTICES, ETC. All such notices and communications
hereunder shall be sent or delivered by mail, telegraph, telex, telecopy, cable
or overnight courier service and all
<PAGE>   15
                                                                       EXHIBIT G
                                                                         Page 15

such notices and communications shall, when mailed, telegraphed, telexed,
telecopied, or cabled or sent by overnight courier, be effective when delivered
to the telegraph company, cable company or overnight courier, as the case may
be, or sent by telex or telecopier and when mailed shall be effective three
Business Days following deposit in the mail with proper postage, except that
notices and communications to the Pledgee shall not be effective until received
by the Pledgee. All notices and other communications shall be in writing and
addressed as follows:

                  (a)      if to any Pledgor, at the address set forth opposite
         such Pledgor's signature below;

                  (b)      if to the Pledgee, at:
                           Bankers Trust Company
                           One Bankers Trust Plaza
                           130 Liberty Street
                           New York, New York  10006
                           Attention:  [Marcus Tarkington]
                           Telephone No.:   [(212) 250-7684]
                           Telecopier No.:  [(212) 250-2923]

                  (c)      if to any Lender Creditor, either (x) to the
         Administrative Agent, at the address of the Administrative Agent
         specified in the Credit Agreement or (y) at such address as such Lender
         Creditor shall have specified in the Credit Agreement;

                  (d)      if to any Other Creditor at such address as such
         Other Creditor shall have specified in writing to the Pledgors and the
         Pledgee;

or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder.

                  21. WAIVER; AMENDMENT. None of the terms and conditions of
this Agreement may be changed, waived, modified or varied in any manner
whatsoever unless in writing duly signed by each Pledgor directly affected
thereby and the Pledgee (with the written consent of the Required Secured
Creditors; provided, that any change, waiver, modification or variance affecting
the rights and benefits of a single Class (as defined below) of Secured
Creditors (and not all Secured Creditors in a like or similar manner) shall also
require the written consent of the Requisite Creditors (as defined below) of
such affected Class. For the purpose of this Agreement, the term "Class" shall
mean each class of Secured Creditors, i.e., whether (i) the Lender Creditors as
holders of the Credit Document Obligations or (ii) the Other Creditors as the
holders of the Other Obligations. For the purpose of this Agreement, the term
"Requisite Creditors" of any Class shall mean each of (i) with respect to the
Credit Document Obligations, the Required Lenders and (ii) with respect to the
Other Obligations, the holders of at least a majority of all obligations
outstanding from time to time under the Interest Rate Protection Agreements or
Other Hedging Agreements. Each Pledgor may assume that any waiver or amendment
executed and delivered by the Pledgee has been approved by the Required Secured
Creditors as provided in this Section 21.
<PAGE>   16
                                                                       EXHIBIT G
                                                                         Page 16

                  22. MISCELLANEOUS. This Agreement shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of and be enforceable by each of the parties hereto and its
successors and assigns, provided that no Pledgor may assign any of its rights or
obligations under this Agreement without the prior consent of the Collateral
Agent. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY THE INTERNAL LAW OF THE STATE OF NEW YORK. The headings in this
Agreement are for purposes of reference only and shall not limit or define the
meaning hereof. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which shall constitute one
instrument. In the event that any provision of this Agreement shall prove to be
invalid or unenforceable, such provision shall be deemed to be severable from
the other provisions of this Agreement which shall remain binding on all parties
hereto.

                  23. RECOURSE. This Agreement is made with full recourse to the
Pledgors and pursuant to and upon all the representations, warranties, covenants
and agreements on the part of the Pledgors contained herein and in the other
Secured Debt Agreements and otherwise in writing in connection herewith or
therewith.

                  24. ADDITIONAL PLEDGORS. It is understood and agreed that any
Subsidiary of Holdings that is required to execute a counterpart of this
Agreement after the date hereof pursuant to the Credit Agreement shall
automatically become a Pledgor hereunder by executing a counterpart hereof and
delivering the same to the Pledgee.

                  25. MISCELLANEOUS. Notwithstanding anything to the contrary
contained herein or in the Credit Agreement, each Pledgor hereby covenants and
agrees that with respect to any Pledged Partnership Interest pledged by it
hereunder, such Pledgor will deliver to the respective Pledged Partnerships
(with copies to the Pledgee) a Partnership Notice (appropriately completed) and
such Pledgor will deliver to the Pledgee a Partnership Acknowledgment signed by
the respective Pledged Partnerships, in each case within 15 days following the
date any such Pledged Partnership Interests are pledged hereunder.

                                     * * * *
<PAGE>   17
                                                                       EXHIBIT G
                                                                         Page 17

                  IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused
this Agreement to be executed by their duly elected officers duly authorized as
of the date first above written.

Address:

[4440 Brittmoore Road           UNIVERSAL COMPRESSION HOLDINGS, INC.,
Houston, Texas  77241                as a Pledgor
Attn:  President
Tel.:  (713) 466-4103
Fax:   (713) 466-6574]          By
                                     Title:

                                UNIVERSAL COMPRESSION, INC.,
                                     as a Pledgor

                                By
                                     Title:

                                [OTHER PLEDGORS],

                                By
                                     Title:

Accepted and Agreed to:
BANKERS TRUST COMPANY,
  as Pledgee, Collateral Agent

By
    Title:
<PAGE>   18
                                                                     ANNEX A
                                                                       to
                                                                PLEDGE AGREEMENT

                                  LIST OF STOCK

I.       Universal Compression Holdings, Inc.

<TABLE>
<CAPTION>
                                                                                                   PERCENTAGE OF
        NAME OF                                                                                 OUTSTANDING SHARES
  ISSUING CORPORATION      CERTIFICATE NUMBER        TYPE OF SHARES        NUMBER OF SHARES      OF CAPITAL STOCK
  -------------------      ------------------        --------------        ----------------     ------------------
<S>                        <C>                       <C>                   <C>                  <C>

</TABLE>

II.      Universal Compression, Inc.

<TABLE>
<CAPTION>
                                                                                                   PERCENTAGE OF
        NAME OF                                                                                 OUTSTANDING SHARES
  ISSUING CORPORATION      CERTIFICATE NUMBER        TYPE OF SHARES        NUMBER OF SHARES      OF CAPITAL STOCK
  -------------------      ------------------        --------------        ----------------     ------------------
<S>                        <C>                       <C>                   <C>                  <C>

</TABLE>
<PAGE>   19
                                                                     ANNEX B
                                                                       to
                                                                PLEDGE AGREEMENT

                                  LIST OF NOTES

I.       Universal Compression Holdings, Inc.

<TABLE>
<CAPTION>
           OBLIGOR         PRINCIPAL AMOUNT (IF ANY)    MATURITY DATE (IF ANY)
           -------         -------------------------    ----------------------
<S>                        <C>                          <C>

</TABLE>

II.      Universal Compression, Inc.

<TABLE>
<CAPTION>
           OBLIGOR         PRINCIPAL AMOUNT (IF ANY)    MATURITY DATE (IF ANY)
           -------         -------------------------    ----------------------
<S>                        <C>                          <C>

</TABLE>
<PAGE>   20
                                                                     ANNEX C
                                                                       to
                                                                PLEDGE AGREEMENT

                              PARTNERSHIP INTERESTS

I.       Universal Compression Holdings, Inc.

II.      Universal Compression, Inc.
<PAGE>   21
                                                                     ANNEX D
                                                                       to
                                                                PLEDGE AGREEMENT

                           FORM OF PARTNERSHIP NOTICE

                             [Letterhead of Pledgor]

                                                               -------- --, ----

TO:      [Name of Pledged Partnership]

                  Notice is hereby given that pursuant to a Pledge Agreement (a
true and correct copy of which is attached hereto), dated as of May __, 2000 (as
amended, modified or supplemented from time to time in accordance with the terms
thereof, the "Pledge Agreement"), among [NAME OF PLEDGOR] (the "Pledgor"), the
other pledgors from time to time party thereto and Bankers Trust Company (the
"Pledgee"), as Collateral Agent on behalf of the Secured Creditors described
therein, the Pledgor has pledged and assigned to the Pledgee for the benefit of
the Secured Creditors, and granted to the Pledgee for the benefit of the Secured
Creditors, a continuing security interest in, all right, title and interest of
the Pledgor, whether now existing or hereafter arising or acquired, as a
[limited] [general] partner in [NAME OF PLEDGED PARTNERSHIP] (the
"Partnership"), and in, to and under the [TITLE OF APPLICABLE PARTNERSHIP
AGREEMENT] (the "Partnership Agreement"), including, without limitation:

                 (i) the Pledgor's interest in all of the capital of the
         Partnership and the Pledgor's interest in all profits, losses,
         Partnership Assets (as defined in the Pledge Agreement) and other
         distributions to which the Pledgor shall at any time be entitled in
         respect of such partnership interest;

                (ii) all other payments due or to become due to the Pledgor in
         respect of such partnership interest, whether under the Partnership
         Agreement or otherwise, whether as contractual obligations, damages,
         insurance proceeds or otherwise;

               (iii) all of the Pledgor's claims, rights, powers, privileges,
         authority, options, security interest, liens and remedies, if any,
         under the Partnership Agreement or at law or otherwise in respect of
         such partnership interest;

                (iv) all present and future claims, if any, of the Pledgor
         against the Partnership for moneys loaned or advanced, for services
         rendered or otherwise;

                 (v) all of the Pledgor's rights under the Partnership Agreement
         or at law to exercise and enforce every right, power, remedy,
         authority, option and privilege of the Pledgor relating to the
         partnership interest, including any power to terminate, cancel or
         modify the Partnership Agreement, to execute any instruments and to
         take any and all
<PAGE>   22
                                                                          Page 2

         other action on behalf of and in the name of the Pledgor in respect of
         the Partnership Interest and the Partnership, to make determinations,
         to exercise any election (including, but not limited, election of
         remedies) or option or to give or receive any notice, consent,
         amendment, waiver or approval, together with full power and authority
         to demand, receive, enforce, collect or receipt for any of the
         foregoing or for any Partnership Asset, to enforce or execute any
         checks, or other instruments or orders, to file any claims and to take
         any action in connection with any of the foregoing;

                (vi) all other property hereafter delivered to the Pledgor in
         substitution for or in addition to any of the foregoing, all
         certificates and instruments representing or evidencing such other
         property and all cash, securities, interest, dividends, distributions,
         rights and other property at any time and from time to time received,
         receivable or otherwise distributed in respect of or in exchange for
         any or all thereof; and

               (vii) to the extent not otherwise included, all proceeds of any
         or all of the foregoing.

                  Pursuant to the Pledge Agreement, the Partnership is hereby
authorized and directed to register the Pledgor's pledge to the Pledgee on
behalf of the Secured Creditors of the interest of the Pledgor on the
Partnership's books.

                  The Pledgor hereby irrevocably agrees and authorizes and
directs the Partnership after such time as the Partnership receives a notice
from the Pledgee of an Event of Default, and until such time as such Event of
Default has been cured or waived, that instructions originated by the Pledgee on
behalf of the Secured Creditors with respect to the Pledgor's claims, rights,
interests, powers, remedies, authorities, options and privileges set forth above
shall, unless written notice to the contrary is given by the Pledgee to the
Partnership, be complied with by the Partnership, without further consent by the
Pledgor.

                  The Pledgor hereby requests the Partnership to indicate the
Partnership's acceptance of this Notice and consent to and confirmation of its
terms and provisions by signing a copy hereof where indicated on the attached
page and returning the same to the Pledgee on behalf of the Secured Creditors.

                                            [NAME OF PLEDGOR]

                                            By__________________________
                                                Name:
                                                Title:
<PAGE>   23
                                                                    ANNEX E
                                                                       to
                                                                PLEDGE AGREEMENT

                             FORM OF ACKNOWLEDGMENT

                  [NAME OF PLEDGED PARTNERSHIP] (the "Partnership") hereby
acknowledges receipt of a copy of the assignment by [NAME OF PLEDGOR]
("Pledgor") of its interest under the [TITLE OF APPLICABLE PARTNERSHIP
AGREEMENT] (the "Partnership Agreement") pursuant to the terms of the Pledge
Agreement, dated as of May __, 2000 (as amended, modified or supplemented from
time to time in accordance with the terms thereof, the "Pledge Agreement"),
among the Pledgor, the other pledgors from time to time party thereto and
Bankers Trust Company (the "Pledgee"), as Collateral Agent on behalf of the
Secured Creditors described therein. The undersigned hereby further confirms the
registration of the Pledgor's pledge of its interest to the Pledgee on behalf of
the Secured Creditors on the Partnership's books.

                  The Partnership hereby irrevocably agrees to comply with the
instructions originated by the Pledgee, on behalf of the Secured Creditors, of
the type and at the times referred to in the penultimate paragraph of the
Partnership Notice dated ___________ __, ____ signed by the Pledgor, without
further consent by the Pledgor. The undersigned further hereby irrevocably
agrees, except upon the prior written consent of the Pledgee, not to honor any
such instructions given by any other person or entity.

Dated:  ___________ __, ____

                                            [NAME OF PLEDGED PARTNERSHIP]

                                            By____________________________
                                                Name:
                                                Title:
<PAGE>   24
                                                                     ANNEX F
                                                                       to
                                                                PLEDGE AGREEMENT

                                OFFICE LOCATIONS

I.       Universal Compression Holdings, Inc.
         4400 Brittmoore Road
         Houston, Texas  77241

II.      Universal Compression, Inc.,<PAGE>   1
                                                                   EXHIBIT 10.49

                                                                       EXHIBIT I

                          FORM OF SUBSIDIARIES GUARANTY

                  SUBSIDIARIES GUARANTY, dated as of May ___, 2000 (as amended,
modified or supplemented from time to time, this "Guaranty"), made by each of
the undersigned guarantors (each a "Guarantor," and together with any other
entity that becomes a guarantor hereunder pursuant to Section 26 hereof, the
"Guarantors"). Except as otherwise defined herein, capitalized terms used herein
and defined in the Credit Agreement (as defined below) shall be used herein as
therein defined.

                              W I T N E S S E T H :

                  WHEREAS, Universal Compression Holdings, Inc. ("Holdings"),
Universal Compression, Inc. (the "Borrower"), the lenders from time to time
party thereto (the "Lenders"), Deutsche Bank Securities Inc., as Lead Arranger
and Bankers Trust Company, as Administrative Agent (together with any successor
administrative agent, the "Administrative Agent"), have entered into a Credit
Agreement, dated as of May ___, 2000, providing for the making of Loans to, and
the issuance of Letters of Credit for the account of, the Borrower as
contemplated therein (as amended, modified as supplemented from time to time,
the "Credit Agreement") (the Lenders, the Collateral Agent and the
Administrative Agent are herein called the "Lender Creditors");

                  WHEREAS, the Borrower may at any time and from time to time
enter into one or more Interest Rate Protection Agreements or Other Hedging
Agreements with one or more Lenders or any affiliate thereof (each such Lender
or affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender's or
affiliate's successors and assigns, if any, collectively, the "Other Creditors,"
and together with the Lender Creditors, the "Secured Creditors");

                  WHEREAS, each Guarantor is a direct or indirect Subsidiary of
the Borrower;

                  WHEREAS, it is a condition to the making of Loans to, and the
issuance of Letters of Credit for the account of, the Borrower under the Credit
Agreement that each Guarantor shall have executed and delivered this Guaranty;
and

                  WHEREAS, each Guarantor will obtain benefits from the
incurrence of Loans to, and the issuance of Letters of Credit for the account
of, the Borrower under the Credit Agreement and the entering into by the
Borrower of Interest Rate Protection Agreements or Other Hedging Agreements and,
accordingly, desires to execute this Guaranty in order to satisfy the conditions
described in the preceding paragraph;
<PAGE>   2
                                                                       EXHIBIT I
                                                                          Page 2

                  NOW, THEREFORE, in consideration of the foregoing and other
benefits accruing to each Guarantor, the receipt and sufficiency of which are
hereby acknowledged, each Guarantor hereby makes the following representations
and warranties to the Secured Creditors and hereby covenants and agrees with
each Secured Creditor as follows:

                  1. Each Guarantor, jointly and severally, irrevocably,
absolutely and unconditionally guarantees: (i) to the Lender Creditors the full
and prompt payment when due (whether at the stated maturity, by acceleration or
otherwise) of (x) the principal of and interest on the Notes issued by, and the
Loans made to, the Borrower under the Credit Agreement, and all reimbursement
obligations and Unpaid Drawings with respect to Letters of Credit issued under
the Credit Agreement and (y) all other obligations (including obligations which,
but for the automatic stay under Section 362(a) of the Bankruptcy Code, would
become due), liabilities and indebtedness owing by the Borrower to the Lender
Creditors under the Credit Agreement or any other Credit Document to which the
Borrower is a party (including, without limitation, indemnities, Fees and
interest thereon), whether now existing or hereafter incurred under, arising out
of or in connection with the Credit Agreement or any such other Credit Document
and the due performance and compliance by the Borrower with all of the terms,
conditions and agreements contained in the Credit Agreement and such other
Credit Documents (all such principal, interest, liabilities, indebtedness and
obligations being herein collectively called the "Credit Document Obligations");
and (ii) to each Other Creditor the full and prompt payment when due (whether at
the stated maturity, by acceleration or otherwise) of all obligations (including
obligations which, but for the automatic stay under Section 362(a) of the
Bankruptcy Code, would become due), liabilities and indebtedness owing by the
Borrower under any Interest Rate Protection Agreement or Other Hedging
Agreement, whether now in existence or hereafter arising, and the due
performance and compliance by the Borrower with all of the terms, conditions and
agreements contained in the Interest Rate Protection Agreements or Other Hedging
Agreements (all such obligations, liabilities and indebtedness being herein
collectively called the "Other Obligations," and together with the Credit
Document Obligations, the "Guaranteed Obligations"). Each Guarantor understands,
agrees and confirms that the Secured Creditors may enforce this Guaranty up to
the full amount of the Guaranteed Obligations against such Guarantor without
proceeding against any other Guarantor, the Borrower, against any security for
the Guaranteed Obligations, or under any other guaranty covering all or a
portion of the Guaranteed Obligations.

                  2. Additionally, each Guarantor, jointly and severally,
unconditionally, absolutely and irrevocably, guarantees the payment of any and
all Guaranteed Obligations whether or not due or payable by the Borrower upon
the occurrence in respect of the Borrower of any of the events specified in
Section 10.05 of the Credit Agreement, and unconditionally, absolutely and
irrevocably, jointly and severally, promises to pay such Guaranteed Obligations
to the Secured Creditors, or order, on demand, in legal tender of the United
States. This Guaranty shall constitute a guaranty of payment, and not of
collection.

                  3. The liability of each Guarantor hereunder is primary,
absolute and unconditional and is exclusive and independent of any security for
or other guaranty of the indebtedness of the Borrower whether executed by such
Guarantor, any
<PAGE>   3
                                                                       EXHIBIT I
                                                                          Page 3

other Guarantor, any other guarantor or by any other party, and the liability of
each Guarantor hereunder shall not be affected or impaired by any circumstance
or occurrence whatsoever, including, without limitation: (a) any direction as to
application of payment by the Borrower or by any other party, (b) any other
continuing or other guaranty, undertaking or maximum liability of a guarantor or
of any other party as to the Guaranteed Obligations, (c) any payment on or in
reduction of any such other guaranty or undertaking, (d) any dissolution,
termination or increase, decrease or change in personnel by the Borrower, (e)
any payment made to any Secured Creditor on the Guaranteed Obligations which any
Secured Creditor repays the Borrower pursuant to court order in any bankruptcy,
reorganization, arrangement, moratorium or other debtor relief proceeding, and
each Guarantor waives any right to the deferral or modification of its
obligations hereunder by reason of any such proceeding, (f) any action or
inaction by the Secured Creditors as contemplated in Section 6 hereof or (g) any
invalidity, irregularity or unenforceability of all or any part of the
Guaranteed Obligations or of any security therefor.

                  4. The obligations of each Guarantor hereunder are independent
of the obligations of any other Guarantor, any other guarantor or the Borrower,
and a separate action or actions may be brought and prosecuted against each
Guarantor whether or not action is brought against any other Guarantor, any
other guarantor or the Borrower and whether or not any other Guarantor, any
other guarantor or the Borrower be joined in any such action or actions. Each
Guarantor waives, to the fullest extent permitted by law, the benefits of any
statute of limitations affecting its liability hereunder or the enforcement
thereof. Any payment by the Borrower or other circumstance which operates to
toll any statute of limitations as to the Borrower shall operate to toll the
statute of limitations as to each Guarantor.

                  5. Each Guarantor hereby waives notice of acceptance of this
Guaranty and notice of any liability to which it may apply, and waives
promptness, diligence, presentment, demand of payment, protest, notice of
dishonor or nonpayment of any such liabilities, suit or taking of other action
by the Administrative Agent or any other Secured Creditor against, and any other
notice to, any party liable thereon (including such Guarantor, any other
Guarantor, any other guarantor, the Borrower).

                  6. Any Secured Creditor may at any time and from time to time
without the consent of, or notice to, any Guarantor (except as shall be required
by applicable statute and cannot be waived), without incurring responsibility to
such Guarantor, without impairing or releasing the obligations of such Guarantor
hereunder, upon or without any terms or conditions and in whole or in part:

                  (a) change the manner, place or terms of payment of, and/or
         change or extend the time of payment of, renew, alter or increase, any
         of the Guaranteed Obligations (including any increase or decrease in
         the rate of interest thereon), any security therefor, or any liability
         incurred directly or indirectly in respect thereof, and the guaranty
         herein made shall apply to the Guaranteed Obligations as so changed,
         extended, renewed or altered;

                  (b) take and hold security for the payment of the Guaranteed
         Obligations and sell, exchange, release, surrender, impair, realize
         upon or otherwise deal with in any manner
<PAGE>   4
                                                                       EXHIBIT I
                                                                          Page 4

         and in any order any property by whomsoever at any time pledged or
         mortgaged to secure, or howsoever securing, the Guaranteed Obligations
         or any liabilities (including any of those hereunder) incurred directly
         or indirectly in respect thereof or hereof, and/or any offset
         thereagainst;

                  (c) exercise or refrain from exercising any rights against the
         Borrower, any other Credit Party, any Subsidiary thereof or otherwise
         act or refrain from acting;

                  (d) release or substitute any one or more endorsers,
         Guarantors, other guarantors, the Borrower or other obligors;

                  (e) settle or compromise any of the Guaranteed Obligations,
         any security therefor or any liability (including any of those
         hereunder) incurred directly or indirectly in respect thereof or
         hereof, and may subordinate the payment of all or any part thereof to
         the payment of any liability (whether due or not) of the Borrower to
         creditors of the Borrower other than the Secured Creditors;

                  (f) apply any sums by whomsoever paid or howsoever realized to
         any liability or liabilities of the Borrower to the Secured Creditors
         regardless of what liabilities of the Borrower remain unpaid;

                  (g) consent to or waive any breach of, or any act, omission or
         default under, any of the Interest Rate Protection Agreements or Other
         Hedging Agreements, the Credit Documents or any of the instruments or
         agreements referred to therein, or otherwise amend, modify or
         supplement any of the Interest Rate Protection Agreements or Other
         Hedging Agreements, the Credit Documents or any of such other
         instruments or agreements;

                  (h) act or fail to act in any manner referred to in this
         Guaranty which may deprive such Guarantor of its right to subrogation
         against the Borrower to recover full indemnity for any payments made
         pursuant to this Guaranty; and/or

                  (i) take any other action which would, under otherwise
         applicable principles of common law, give rise to a legal or equitable
         discharge of such Guarantor from its liabilities under this Guaranty.

                  7. This Guaranty is a continuing one and all liabilities to
which it applies or may apply under the terms hereof shall be conclusively
presumed to have been created in reliance hereon. No failure or delay on the
part of any Secured Creditor in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein expressly specified are cumulative and not
exclusive of any rights or remedies which any Secured Creditor would otherwise
have. No notice to or demand on any Guarantor in any case shall entitle such
Guarantor to any other further notice or demand in similar or other
circumstances or constitute a
<PAGE>   5
                                                                       EXHIBIT I
                                                                          Page 5

waiver of the rights of any Secured Creditor to any other or further action in
any circumstances without notice or demand. It is not necessary for any Secured
Creditor to inquire into the capacity or powers of the Borrower or the officers,
directors, partners or agents acting or purporting to act on its behalf, and any
indebtedness made or created in reliance upon the professed exercise of such
powers shall be guaranteed hereunder.

                  8. Any indebtedness of the Borrower now or hereafter held by
any Guarantor is hereby subordinated to the Guaranteed Obligations of the
Borrower owing to the Secured Creditors, and if the Administrative Agent or the
Collateral Agent, after the occurrence and during the continuance of an Event of
Default, so requests, shall be collected, enforced and received by such
Guarantor as trustee for the Secured Creditors and be paid over to the Secured
Creditors on account of the Guaranteed Obligations of the Borrower to the
Secured Creditors, but without affecting or impairing in any manner the
liability of such Guarantor under the other provisions of this Guaranty. Without
limiting the generality of the foregoing, each Guarantor hereby agrees with the
Secured Creditors that it will not exercise any right of subrogation which it
may at any time otherwise have as a result of this Guaranty (whether
contractual, under Section 509 of the Bankruptcy Code or otherwise) until all
Guaranteed Obligations have been irrevocably paid in full in cash.

                  9. (a) Each Guarantor waives any right (except as shall be
required by applicable law and cannot be waived) to require the Secured
Creditors to: (i) proceed against the Borrower, any other Guarantor, any other
guarantor of the Guaranteed Obligations or any other party; (ii) proceed against
or exhaust any security held from the Borrower, any other Guarantor, any other
guarantor of the Guaranteed Obligations or any other party; or (iii) pursue any
other remedy in the Secured Creditors' power whatsoever. Each Guarantor waives
any defense based on or arising out of any defense of the Borrower, any other
Guarantor, any other guarantor of the Guaranteed Obligations or any other party
other than payment in full of the Guaranteed Obligations, including, without
limitation, any defense based on or arising out of the disability of the
Borrower, any other Guarantor, any other guarantor of the Guaranteed Obligations
or any other party, or the unenforceability of the Guaranteed Obligations or any
part thereof from any cause, or the cessation from any cause of the liability of
the Borrower other than payment in full of the Guaranteed Obligations. The
Secured Creditors may, at their election, foreclose on any security held by the
Administrative Agent, the Collateral Agent or the other Secured Creditors by one
or more judicial or nonjudicial sales, whether or not every aspect of any such
sale is commercially reasonable (to the extent such sale is permitted by
applicable law), or exercise any other right or remedy the Secured Creditors may
have against the Borrower or any other party, or any security, without affecting
or impairing in any way the liability of any Guarantor hereunder except to the
extent the Guaranteed Obligations have been paid in full in cash. Each Guarantor
waives any defense arising out of any such election by the Secured Creditors,
even though such election operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against
the Borrower or any other party or any security.

                  (b) Each Guarantor waives all presentments, demands for
performance, protests and notices, including, without limitation, notices of
nonperformance, notices of protest, notices
<PAGE>   6
                                                                       EXHIBIT I
                                                                          Page 6

of dishonor, notices of acceptance of this Guaranty, and notices of the
existence, creation or incurring of new or additional indebtedness. Each
Guarantor assumes all responsibility for being and keeping itself informed of
the Borrower's financial condition and assets, and of all other circumstances
bearing upon the risk of nonpayment of the Guaranteed Obligations and the
nature, scope and extent of the risks which such Guarantor assumes and incurs
hereunder, and agrees that the Secured Creditors shall have no duty to advise
any Guarantor of information known to them regarding such circumstances or
risks.

                  (c) Each Guarantor hereby acknowledges and affirms that it
understands that to the extent the Guaranteed Obligations are secured by Real
Property located in the State of California, such Guarantor shall be liable for
the full amount of its liability hereunder notwithstanding foreclosure on such
Real Property by trustee sale or any other reason impairing such Guarantor's or
any Secured Creditors' right to proceed against the Borrower or any other
guarantor of the Guaranteed Obligations. In accordance with Section 2856 of the
California Civil Code, each Guarantor hereby waives:

                 (i) all rights of subrogation, reimbursement, indemnification,
         and contribution and any other rights and defenses that are or may
         become available to such Guarantor by reason of Sections 2787 to 2855,
         inclusive, 2899 and 3433 of the California Civil Code;

                (ii) all rights and defenses that such Guarantor may have
         because the Guaranteed Obligations are secured by Real Property located
         in the State of California. This means, among other things: (A) the
         Secured Creditors may collect from such Guarantors without first
         foreclosing on any real or personal property collateral pledged by the
         Borrower or any other Credit Party; and (B) if the Secured Creditors
         foreclose on any Real Property collateral pledged by the Borrower or
         any other Credit Party, (1) the amount of the Guaranteed Obligations
         may be reduced only by the price for which that collateral is sold at
         the foreclosure sale, even if the collateral is worth more than the
         sale price, and (2) the Secured Creditors may collect from such
         Guarantor even if the Secured Creditors, by foreclosing on the Real
         Property collateral, have destroyed any right such Guarantor may have
         to collect from the Borrower. This is an unconditional and irrevocable
         waiver of any rights and defenses such Guarantor may have because the
         Guaranteed Obligations are secured by Real Property located in the
         State of California. These rights and defenses include, but are not
         limited to, any rights or defenses based upon Section 580a, 580b, 580d
         or 726 of the California Code of Civil Procedure; and

               (iii) all rights and defenses arising out of an election of
         remedies by the Secured Creditors, even though that election of
         remedies, such as a nonjudicial foreclosure with respect to security
         for the Guaranteed Obligations, has destroyed such Guarantor's rights
         of subrogation and reimbursement against the Borrower by the operation
         of Section 580d of the California Code of Civil Procedure or otherwise.

                  Each Guarantor warrants and agrees that each of the waivers
set forth above is made with full knowledge of its significance and consequences
and that if any of such waivers
<PAGE>   7
                                                                       EXHIBIT I
                                                                          Page 7

are determined to be contrary to any applicable law or public policy, such
waivers shall be effective only to the maximum extent permitted by law.

                  10. The Secured Creditors agree that this Guaranty may be
enforced only by the action of the Administrative Agent or the Collateral Agent
and that no other Secured Creditors shall have any right individually to seek to
enforce or to enforce this Guaranty or to realize upon the security to be
granted by the Security Documents, it being understood and agreed that such
rights and remedies may be exercised by the Administrative Agent or the
Collateral Agent or, after all the Credit Document Obligations have been paid in
full, by the holders of at least a majority of the outstanding Other
Obligations, as the case may be, for the benefit of the Secured Creditors upon
the terms of this Guaranty and the Security Documents. The Secured Creditors
further agree that this Guaranty may not be enforced against any director,
officer, employee, partner or stockholder of any Guarantor (except to the extent
such partner or stockholder is also a Guarantor hereunder).

                  11. In order to induce the Lenders to make Loans to, and issue
Letters of Credit for the account of, the Borrower pursuant to the Credit
Agreement, and in order to induce the Other Creditors to execute, deliver and
perform the Interest Rate Protection Agreements or Other Hedging Agreements,
each Guarantor represents, warrants and covenants that:

                  (a) Such Guarantor (i) is a duly organized and validly
         existing corporation in good standing under the laws of the
         jurisdiction of its organization, (ii) has the corporate power and
         authority to own its property and assets and to transact the business
         in which it is engaged and presently proposes to engage and (iii) is
         duly qualified and is authorized to do business and is in good standing
         in each jurisdiction where the conduct of its business requires such
         qualification except for failures to be so qualified which,
         individually or in the aggregate, could not reasonably be expected to
         have a material adverse effect on the business, operations, property,
         assets, liabilities, condition (financial or otherwise) or prospects of
         Holdings and its Subsidiaries taken as a whole.

                  (b) Such Guarantor has the corporate power and authority to
         execute, deliver and perform the terms and provisions of this Guaranty
         and each other Document to which it is a party and has taken all
         necessary corporate action to authorize the execution, delivery and
         performance by it of this Guaranty and each such other Document. Such
         Guarantor has duly executed and delivered this Guaranty and each other
         Document to which it is a party, and this Guaranty and each such other
         Document constitutes the legal, valid and binding obligation of such
         Guarantor enforceable in accordance with its terms, except to the
         extent that the enforceability hereof or thereof may be limited by
         applicable bankruptcy, insolvency, reorganization, moratorium or other
         similar laws generally affecting creditors' rights and by equitable
         principles (regardless of whether enforcement is sought in equity or at
         law).

                  (c) Neither the execution, delivery or performance by such
         Guarantor of this Guaranty or any other Document to which it is a
         party, nor compliance by it with the terms and provisions hereof and
         thereof, will (i) contravene any provision of any
<PAGE>   8
                                                                       EXHIBIT I
                                                                          Page 8

         applicable law, statute, rule or regulation or any applicable order,
         writ, injunction or decree of any court or governmental
         instrumentality, (ii) conflict with or result in any breach of any of
         the terms, covenants, conditions or provisions of, or constitute a
         default under, or result in the creation or imposition of (or the
         obligation to create or impose) any Lien (except pursuant to the
         Security Documents) upon any of the property or assets of such
         Guarantor or any of its Subsidiaries pursuant to the terms of any
         indenture, mortgage, deed of trust, loan agreement, credit agreement,
         or any other material agreement, contract or instrument to which such
         Guarantor or any of its Subsidiaries is a party or by which it or any
         of its property or assets is bound or to which it may be subject or
         (iii) violate any provision of the certificate of incorporation or
         by-laws (or equivalent organizational documents) of such Guarantor or
         any of its Subsidiaries.

                  (d) No order, consent, approval, license, authorization or
         validation of, or filing, recording or registration with (except as
         have been obtained or made), or exemption by, any governmental or
         public body or authority, or any subdivision thereof, is required to
         authorize, or is required for, (i) the execution, delivery and
         performance of this Guaranty by such Guarantor or any other Document to
         which such Guarantor is a party or (ii) the legality, validity, binding
         effect or enforceability of this Guaranty or any other Document to
         which such Guarantor is a party.

                  (e) There are no actions, suits or proceedings pending or
         threatened (i) with respect to this Guaranty or any other Document to
         which such Guarantor is a party or (ii) with respect to such Guarantor
         that could reasonably be expected to materially and adversely affect
         (a) the business, operations, property, assets, liabilities, condition
         (financial or otherwise) or prospects of Holdings and its Subsidiaries
         taken as a whole or (b) the rights or remedies of the Secured Creditors
         hereunder or under the other Credit Documents to which such Guarantor
         is a party or the ability of such Guarantor to perform its respective
         obligations to the Secured Creditors hereunder and under the other
         Credit Documents to which it is a party.

                  12. Each Guarantor covenants and agrees that on and after the
Effective Date and until the termination of the Total Commitment and all
Interest Rate Protection Agreements and Other Hedging Agreements, and when no
Note or Letter of Credit remains outstanding and all Guaranteed Obligations have
been paid in full, such Guarantor will comply, and will cause each of its
Subsidiaries to comply, with all of the applicable provisions, covenants and
agreements contained in Sections 8 and 9 of the Credit Agreement, and will take,
or will refrain from taking, as the case may be, all actions that are necessary
to be taken or not taken so that it is not in violation of any provision,
covenant or agreement contained in Section 8 or 9 of the Credit Agreement, and
so that no Default or Event of Default, is caused by the actions of such
Guarantor or any of its Subsidiaries.

                  13. The Guarantors hereby jointly and severally agree to pay
all reasonable out-of-pocket costs and expenses of each Secured Creditor in
connection with the enforcement of this Guaranty and of the Administrative Agent
in connection with any amendment, waiver or consent
<PAGE>   9
                                                                       EXHIBIT I
                                                                          Page 9

relating hereto (including in each case, without limitation, the reasonable fees
and disbursements of counsel employed by each Secured Creditor).

                  14. This Guaranty shall be binding upon each Guarantor and its
successors and assigns and shall inure to the benefit of the Secured Creditors
and their successors and assigns.

                  15. Neither this Guaranty nor any provision hereof may be
changed, waived, discharged or terminated except with the written consent of
each Guarantor directly affected thereby and with the written consent of the
Required Secured Creditors (as defined in the Security Agreement); provided,
that any change, waiver, modification or variance affecting the rights and
benefits of a single Class (as defined below) of Secured Creditors (and not all
Secured Creditors in a like or similar manner) shall also require the written
consent of the Requisite Creditors (as defined below) of such Class of Secured
Creditors (it being understood that the addition or release of any Guarantor
hereunder shall not constitute a change, waiver, discharge or termination
affecting any Guarantor other than the Guarantor so added or released). For the
purpose of this Guaranty, the term "Class" shall mean each class of Secured
Creditors, i.e., whether (x) the Lender Creditors as holders of the Credit
Document Obligations or (y) the Other Creditors as the holders of the Other
Obligations. For the purpose of this Guaranty, the term "Requisite Creditors" of
any Class shall mean (x) with respect to the Credit Document Obligations, the
Required Lenders and (y) with respect to the Other Obligations, the holders of
at least a majority of all obligations outstanding from time to time under the
Interest Rate Protection or Other Hedging Agreements.

                  16. Each Guarantor acknowledges that an executed (or
conformed) copy of each of the Credit Documents and Interest Rate Protection
Agreements or Other Hedging Agreements has been made available to its principal
executive officers and such officers are familiar with the contents thereof.

                  17. In addition to any rights now or hereafter granted under
applicable law (including, without limitation, Section 151 of the New York
Debtor and Secured Creditor Law) and not by way of limitation of any such
rights, upon the occurrence and during the continuance of an Event of Default
(such term to mean and include any "Event of Default" as defined in the Credit
Agreement or any payment default under any Interest Rate Protection Agreement or
Other Hedging Agreement continuing after any applicable grace period), each
Secured Creditor is hereby authorized, at any time or from time to time, without
notice to any Guarantor or to any other Person, any such notice being expressly
waived, to set off and to appropriate and apply any and all deposits (general or
special) and any other indebtedness at any time held or owing by such Secured
Creditor to or for the credit or the account of such Guarantor, against and on
account of the obligations and liabilities of such Guarantor to such Secured
Creditor under this Guaranty, irrespective of whether or not such Secured
Creditor shall have made any demand hereunder and although said obligations,
liabilities, deposits or claims, or any of them, shall be contingent or
unmatured. Notwithstanding anything to the contrary contained in this Section
17, no Secured Creditor shall exercise any such right of set-off without the
prior consent of the Administrative Agent or the Required Secured Creditors so
long as the Guaranteed Obligations shall be secured
<PAGE>   10
                                                                       EXHIBIT I
                                                                         Page 10

by any Real Property located in the State of California, it being understood and
agreed, however, that this sentence is for the sole benefit of the Secured
Creditors and may be amended, modified or waived in any respect by the Required
Secured Creditors without the requirements of prior notice to or consent by any
Credit Party and does not constitute a waiver of any rights against any Credit
party or against any Collateral.

                  18. All notices, requests, demands or other communications
pursuant hereto shall be deemed to have been duly given or made when delivered
to the Person to which such notice, request, demand or other communication is
required or permitted to be given or made under this Guaranty, addressed to such
party at (i) in the case of any Lender Creditor, as provided in the Credit
Agreement, (ii) in the case of any Guarantor, at the address set forth opposite
such Guarantor's signature below and (iii) in the case of any Other Creditor, at
such address as such Other Creditor shall have specified in writing to the
Guarantors; or in any case at such other address as any of the Persons listed
above may hereafter notify the others in writing.

                  19. If claim is ever made upon any Secured Creditor for
repayment or recovery of any amount or amounts received in payment or on account
of any of the Guaranteed Obligations and any of the aforesaid payees repays all
or part of said amount by reason of (i) any judgment, decree or order of any
court or administrative body having jurisdiction over such payee or any of its
property or (ii) any settlement or compromise of any such claim effected by such
payee with any such claimant (including the Borrower) then and in such event
each Guarantor agrees that any such judgment, decree, order, settlement or
compromise shall be binding upon such Guarantor, notwithstanding any revocation
hereof or other instrument evidencing any liability of the Borrower, and such
Guarantor shall be and remain liable to the aforesaid payees hereunder for the
amount so repaid or recovered to the same extent as if such amount had never
originally been received by any such payee.

                  20. (a) THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. Any legal action or
proceeding with respect to this Guaranty or any other Credit Document to which
any Guarantor is a party 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 Guaranty, each Guarantor hereby irrevocably accepts for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts. Each Guarantor hereby irrevocably
designates, appoints and empowers CT Corporation System, with offices on the
date hereof at 1633 Broadway, New York, New York 10019, 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, each Guarantor agrees to designate a new designee, appointee and
agent in New York City on the terms and for purposes of this provision
satisfactory to the Administrative Agent. Each Guarantor 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 each Guarantor at the address set forth as
<PAGE>   11
                                                                       EXHIBIT I
                                                                         PAge 11

described in Section 18 above, such service to become effective thirty (30) days
after such mailing. Each Guarantor hereby irrevocably waives any objection to
such service of process and further irrevocably waives and agrees not to plead
or claim in any action or proceeding commenced hereunder or under any other
Credit Documents to which such Guarantor is a party that service of process was
in any way invalid or ineffective. Nothing herein shall affect the right of the
Administrative Agent, any Creditor or the holder of any Note to serve process in
any other manner permitted by law or to commence legal proceedings or otherwise
proceed against each Guarantor in any other jurisdiction.

                  (b) Each Guarantor 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
Guaranty or any other Credit Document to which it is a party 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.
Each Guarantor further waives any right it may have to trial by jury in any
court or jurisdiction, including, without limitation, the jurisdictions and
courts referred to in clause (a) above.

                  21. In the event that all of the capital stock of one or more
Guarantors is sold or otherwise disposed of or liquidated in compliance with the
requirements of Section 9.02 of the Credit Agreement (or such sale or other
disposition has been approved in writing by the Required Secured Creditors) (or
all Lenders if required by Section 13.12 of the Credit Agreement) and the
proceeds of such sale, disposition or liquidation are applied in accordance with
the provisions of Section 4.02 of the Credit Agreement, to the extent
applicable, such Guarantor shall upon consummation of such sale or other
disposition (except to the extent that such sale or disposition is to the
Borrower or another Subsidiary thereof) be released from this Guaranty
automatically and without further action and this Guaranty shall, as to each
such Guarantor or Guarantors, terminate, and have no further force or effect (it
being understood and agreed that the sale of one or more Persons that own,
directly or indirectly, all of the capital stock of any Guarantor shall be
deemed to be a sale of such Guarantor for the purposes of this Section 21).

                  22. At any time a payment in respect of the Guaranteed
Obligations is made under this Guaranty, the right of contribution of each
Guarantor against each other Guarantor shall be determined as provided in the
immediately following sentence, with the right of contribution of each Guarantor
to be revised and restated as of each date on which a payment (a "Relevant
Payment") is made on the Guaranteed Obligations under this Guaranty. At any time
that a Relevant Payment is made by a Guarantor that results in the aggregate
payments made by such Guarantor in respect of the Guaranteed Obligations to and
including the date of the Relevant Payment exceeding such Guarantor's
Contribution Percentage (as defined below) of the aggregate payments made by all
Guarantors in respect of the Guaranteed Obligations to and including the date of
the Relevant Payment (such excess, the "Aggregate Excess Amount"), each such
Guarantor shall have a right of contribution against each other Guarantor who
has made payments in respect of the Guaranteed Obligations to and including the
date of the Relevant Payment in an aggregate amount less than such other
Guarantor's Contribution Percentage of the
<PAGE>   12
                                                                       EXHIBIT I
                                                                         Page 12

aggregate payments made to and including the date of the Relevant Payment by all
Guarantors in respect of the Guaranteed Obligations (the aggregate amount of
such deficit, the "Aggregate Deficit Amount") in an amount equal to (x) a
fraction the numerator of which is the Aggregate Excess Amount of such Guarantor
and the denominator of which is the Aggregate Excess Amount of all Guarantors
multiplied by (y) the Aggregate Deficit Amount of such other Guarantor. A
Guarantor's right of contribution pursuant to the preceding sentences shall
arise at the time of each computation, subject to adjustment to the time of any
subsequent computation; provided, that no Guarantor may take any action to
enforce such right until the Guaranteed Obligations have been irrevocably paid
in full in cash, it being expressly recognized and agreed by all parties hereto
that any Guarantor's right of contribution arising pursuant to this Section 22
against any other Guarantor shall be expressly junior and subordinate to such
other Guarantor's obligations and liabilities in respect of the Guaranteed
Obligations and any other obligations owing under this Guaranty. As used in this
Section 22: (i) each Guarantor's "Contribution Percentage" shall mean the
percentage obtained by dividing (x) the Adjusted Net Worth (as defined below) of
such Guarantor by (y) the aggregate Adjusted Net Worth of all Guarantors; (ii)
the "Adjusted Net Worth" of each Guarantor shall mean the greater of (x) the Net
Worth (as defined below) of such Guarantor and (y) zero; and (iii) the "Net
Worth" of each Guarantor shall mean the amount by which the fair salable value
of such Guarantor's assets on the date of any Relevant Payment exceeds its
existing debts and other liabilities (including contingent liabilities, but
without giving effect to any Guaranteed Obligations arising under this Guaranty)
on such date. All parties hereto recognize and agree that, except for any right
of contribution arising pursuant to this Section 22, each Guarantor who makes
any payment in respect of the Guaranteed Obligations shall have no right of
contribution or subrogation against any other Guarantor in respect of such
payment until all of the Guaranteed Obligations have been irrevocably paid in
full in cash. Each of the Guarantors recognizes and acknowledges that the rights
to contribution arising hereunder shall constitute an asset in favor of the
party entitled to such contribution. In this connection, each Guarantor has the
right to waive its contribution right against any Guarantor to the extent that
after giving effect to such waiver such Guarantor would remain solvent, in the
determination of the Required Lenders.

                  23. Each Guarantor and each Secured Creditor (by its
acceptance of the benefits of this Guaranty) hereby confirms that it is its
intention that this Guaranty not constitute fraudulent transfer or conveyance
for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act or
any similar Federal or state law. To effectuate the foregoing intention, each
Guarantor and each Secured Creditor (by its acceptance of the benefits of this
Guaranty) hereby irrevocably agrees that the Guaranteed Obligations guaranteed
by such Guarantor shall be limited to such amount as will, after giving effect
to such maximum amount and all other (contingent or otherwise) liabilities of
such Guarantor that are relevant under such laws, and after giving effect to any
rights to contribution pursuant to any agreement providing for an equitable
contribution among such Guarantor and the other Guarantors, result in the
Guaranteed Obligations of such Guarantor in respect of such maximum amount not
constituting a fraudulent transfer or conveyance.
<PAGE>   13
                                                                       EXHIBIT I
                                                                         Page 13

                  24. This Guaranty may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A set of counterparts
executed by all the parties hereto shall be lodged with the Guarantors and the
Administrative Agent.

                  25. All payments made by any Guarantor hereunder will be made
without setoff, counterclaim or other defense and on the same basis as payments
are made by the Borrower under Sections 4.03 and 4.04 of the Credit Agreement.

                  26. It is understood and agreed that any Subsidiary of the
Borrower that is required to execute a counterpart of this Guaranty after the
date hereof pursuant to the Credit Agreement shall automatically become a
Guarantor hereunder by executing a counterpart hereof and delivering the same to
the Administrative Agent.
<PAGE>   14
                                                                       EXHIBIT I
                                                                         Page 14

                  IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to
be executed and delivered as of the date first above written.

Address:

                                         [NAMES OF SUBSIDIARY GUARANTORS],
                                            as a Guarantor

                                         By
                                              Title:

Accepted and Agreed to:

BANKERS TRUST COMPANY,
  as Administrative Agent

By
    Title:

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