Document:

<PAGE>   1
                                                                   EXHIBIT  10.9
<TABLE>
<S><C>
CHORUS CORPORATION                          NORTH AMERICAN BANKING COMPANY                Loan Number       3003689
                                                                                                     -------------------------------
4900 CONSTELLATION DRIVE                    2230 ALBERT STREET                            Date     DECEMBER 14, 1999
                                                                                              --------------------------------------
VADNAIS HEIGHTS, MN  55127                  ROSEVILLE, MN  55113                          Maturity Date     DEC. 14, 2001
                                                                                                       -----------------------------
                                                                                          Loan Amount $ 600,000.00
                                                                                                       -----------------------------
                                                                                          Renewal Of
                                                                                                    --------------------------------
   BORROWER'S NAME AND ADDRESS                LENDER'S NAME AND ADDRESS                   SS/TIN: 41-1569588
   "I", "me" and "my" means each borrower     "You" and "your" means the lender, its
   above, together and separately.            successors and assigns.

I promise to pay you, at your address listed above, the PRINCIPAL sum of SIX HUNDRED THOUSAND AND NO/100* * * * * * * * * * * * *
                                                                         -----------------------------------------------------------
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Dollars $ 600,000.00
---------------------------------------------------------------------------         ------------------------------------------------
|X| SINGLE ADVANCE: I will receive all of the loan amount on DECEMBER 14, 1999. There will be no additional advances under this
                                                             -----------------
note.
| | MULTIPLE ADVANCE: The loan amount shown above is the maximum amount I can borrow under this note. On
         I will receive $                   and future principal advances are permitted.
                         -------------------
         CONDITIONS:  The conditions for future advances are
                                                             -----------------------------------------------------------------------
         ---------------------------------------------------------------------------------------------------------------------------
         ---------------------------------------------------------------------------------------------------------------------------
         | | OPEN END CREDIT:  You and I agree that I may borrow up to the maximum amount more than one time.  All other conditions
             of this note apply to this feature.  This feature expires on                                           .
                                                                          ------------------------------------------
         | | CLOSED END CREDIT:  You and I agree that I may borrow up to the maximum only one time (and subject to all other
             conditions).
INTEREST:  I agree to pay interest on the outstanding principal balance from    DEC. 14, 1999     at the rate of 8.500% per year
                                                                             --------------------                -----
until FIRST CHANGE DATE .
      ------------------
|X| VARIABLE RATE: This rate may then change as stated below.

         |X|  INDEX RATE:  The future rate will be EQUAL TO the following index rate: WALL STREET JOURNAL PRIME RATE
                                                   --------                           ----------------------------------------------
         ---------------------------------------------------------------------------------------------------------------------------
         ---------------------------------------------------------------------------------------------------------------------------
         | |  NO INDEX:  The future rate will not be subject to any internal or external index.  It will be entirely in your
control.
         |X|  FREQUENCY AND TIMING:  The rate on this note may change as often as DAILY                                            .
                                                                                 --------------------------------------------------
                  A change in the interest rate will take effect ON THE SAME DAY                                                   .
                                                                 ------------------------------------------------------------------
         | |  LIMITATIONS: During the term of this loan, the applicable annual interest rate will not be more than                 %
                                                                                                                   ---------------
              or less than             %. The rate may not change more than             % each                                     .
                           ------------                                     ------------       ------------------------------------
         EFFECT OF VARIABLE RATE: A change in the interest rate will have the following effect on the payments:
         |X| The amount of each scheduled payment will change.                 |X| The amount of the final payment will change.
         | |                                                                                                                       .
         ---------------------------------------------------------------------------------------------------------------------------
ACCRUAL METHOD:  You will calculate interest on a             ACTUAL/360                          basis.
                                                  -----------------------------------------------
POST MATURITY RATE:  I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as
stated below:
         |X|  on the same fixed or variable rate basis in effect before the maturity (as indicated above).
         | |  at a rate equal to                                                                                                   .
                               ----------------------------------------------------------------------------------------------------
|X|  LATE CHARGE:  If I make a payment more than     10     days after it is due, I agree to pay a late charge of 5.000% OF THE LATE
                                                 ----------                                                       ------------------
         PAYMENT WITH A MINIMUM OF $25.00                                                                                          .
         --------------------------------------------------------------------------------------------------------------------------
|X|  ADDITIONAL CHARGES:  In addition to interest, I agree to pay the following charges which  |X| are | | are not  included in the
         principal amount above:    SEE DISBURSEMENT AUTHORIZATION                                                                 .
                                 --------------------------------------------------------------------------------------------------
| |  AUTHORITY:  The interest rate and other charges for this loan are authorized by
                                                                                    ------------------------------------------------
PAYMENTS:  I agree to pay this note as follows:
|X|  INTEREST:  I agree to pay accrued interest ON THE 14TH DAY OF EACH MONTH BEGINNING JANUARY 14, 2000
                                                ------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
|X|  PRINCIPAL:  I agree to pay the principal DECEMBER 14, 2001
                                              --------------------------------------------------------------------------------------
         --------------------------------------------------------------------------------------------------------------------------

| |  INSTALLMENTS: I agree to pay this note in           payments. The first payment will be $                                will
                                               ---------                                      --------------------------------
be due                 . A payment of $               will be due                                      . The final payment of the
      -----------------                ---------------           --------------------------------------
entire unpaid balance of principal and interest will be due                                              .
                                                           ----------------------------------------------
ADDITIONAL TERMS:
BORROWER IS TO PROVIDE THE BANK WITH QUARTERLY PREPARED BUSINESS FINANCIAL STATEMENTS.

BORROWER IS TO PROVIDE THE BANK WITH AUDITED FISCAL YEAR END STATEMENTS WITHIN 30 DAYS OF PREPARATION NO LATER THAN 150 DAYS AFTER
YEAR END.

BORROWER TO MAINTAIN A MINIMUM TANGIBLE NET WORTH OF $2,000,000 AND A MINIMUM CURRENT RATIO OF 1.2.

| |  SECURITY: This note is separately secured by (describe separate      PURPOSE:  The purpose of this loan is BUSINESS:   PURCHASE
                                                                                                                --------------------
document by type and date):                                               COMMERCIAL LOT
                                                                          ----------------------------------------------------------
                                                                          SIGNATURE:  I AGREE TO THE TERMS OF THIS NOTE
                                                                          (INCLUDING THOSE ON PAGE 2).  I have received a copy on
(This section is for your internal use. Failure to list a separate        today's date.
 security document does not mean the agreement will not secure
 this note.)                                                              CHORUS CORPORATION
                                                                          ----------------------------------------------------------
Signature for Lender

X        /s/ Bradley G. Huckle                                            BY:    /s/  FRANK KRAEMER
--------------------------------------------------------------            ----------------------------------------------------------
BRADLEY G. HUCKLE                                                         FRANK C. KRAEMER, CFO

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

                                                                          ----------------------------------------------------------
UNIVERSAL NOTE
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                                                                   (page 1 of 2)
<PAGE>   2

DEFINITIONS: As used on page 1,

 "|X|" means the terms that apply to this loan.

"I," "me" or "my" means each Borrower who signs this note and each other person
or legal entity (including guarantors, endorsers, and sureties) who agrees to
pay this note (together referred to as "us"). "You" or "your" means the Lender
and its successors and assigns.
APPLICABLE LAW:  Minnesota law controls this note.  Any term of this note
which violates Minnesota law is not effective, unless the law permits you and me
to agree to a variation.
     If any provision of this agreement is unenforceable, the rest of the
agreement remains in force. I may not change this agreement without your express
written consent. Time is of the essence in this agreement.
PAYMENTS: You will apply each payment I make on this note to any amount I owe
you for charges which are neither interest nor principal. You will apply the
rest of each payment to any unpaid interest, and then to the unpaid principal.
If you and I agree to a different application of payments, we will describe our
agreement on this note.
     I may prepay all or part of this loan without penalty unless we agree to
something different on this note. Any partial prepayment I make will not excuse
or reduce any later scheduled payment until this note is paid in full (unless,
when I make the prepayment, you and I agree in writing to the contrary).
INTEREST: Interest accrues on the principal remaining unpaid from time to time,
until paid in full. If you give me my loan money in more than one advance, each
advance will start to earn interest only when I receive it.
     The interest rate in effect on this note at any time will apply to all the
money you advance at that time. Regardless of anything in this document that
might imply otherwise, I will not pay and you will not charge a rate of interest
that is higher than the maximum rate of interest you could charge under
applicable law for the credit you give me (before or after maturity).
     If you send any erroneous notice of interest, we mutually agree to correct
it. If you collect more interest than the law and this agreement allow, you
agree to refund it to me.
INDEX RATE: The index will serve only as a device for setting the rate on this
note. You do not guarantee by selecting this index, or the margin, that the rate
on this note will be the same rate you charge on any other loans or class of
loans to me or other borrowers.
ACCRUAL METHOD: You will calculate the amount of interest I will pay on this
loan using the interest rate and accrual method on page 1 of this note. When
calculating interest, you will use the accrual method to determine the number of
days in a "year." If you do not state an accrual method, you may use any
reasonable accrual method to calculate interest.
POST MATURITY RATE:  In deciding when the "Post Maturity Rate" (on page 1)
applies, "maturity" means: 1.)  The date of the last scheduled payment indicated
on page 1 of this note, or; 2.)  The date you accelerate payment on the note,
whichever is earlier.
SINGLE ADVANCE LOANS: If this is a single advance loan, you and I expect that
you will make only one advance of principal. However, you may add other amounts
to the principal if you make any payments described in the "PAYMENTS BY LENDER"
paragraph below.
MULTIPLE ADVANCE LOANS: If this is a multiple advance loan, you and I expect
that you will make more than one advance of principal. If this is closed-end
credit, I am not entitled to additional credit if I repay a part of the
principal.
PAYMENTS BY LENDER: If you are authorized to pay, on my behalf, charges I am
obligated to pay (such as property insurance premiums), then you may treat those
payments made by you as advances and add them to the unpaid principal under this
note. Or, you may demand immediate payment of the charges. SET-OFF: You may set
off any amount due and payable under this note against any right I have to
receive money from you.
     "Right to receive money from you" means:
     (1) any deposit account balance I have with you;
     (2) any money owed to me on an item presented to you or in your possession
         for collection or exchange; and
     (3) any repurchase agreement or other nondeposit obligation.
     "Any amount due and payable under this note" means the total amount of
which you are entitled to demand payment under the terms of this note at the
time you set off. This total includes any balance the due date for which you
properly accelerate under this note.
     If someone who has not agreed to pay this note also owns my right to
receive money from you, your set-off right will apply to my interest in the
obligation and to any other amounts I could withdraw on my sole request or
endorsement.
     Your set-off right does not apply to an account or other obligation where
my rights are only as a representative. It also does not apply to any Individual
Retirement Account or other tax-deferred retirement account.
     You will not be liable for the dishonor of any check when the dishonor
occurs because you set off this debt against one of my accounts. I will assume
the liability and relieve you of all responsibility for any such claim that
occurs if you set off this debt against one of my accounts.
REAL ESTATE OR RESIDENCE SECURITY: If I am giving you any real estate or a
residence that is personal property, as security for this note, I have signed a
separate security agreement. Default and your remedies for default are
determined by applicable law and by the security agreement. Default and your
remedies may also be determined by the "Default" and "Remedies" paragraphs
below, to the extent they are not prohibited by law or contrary to the security
agreement.
DEFAULT: I will be in default if any of the following happen:
     (1) I fail to make a payment on time or in the amount due;
     (2) I fail to keep the property insured, if required;
     (3) I fail to pay, or keep any promise, on any debt or agreement I have
with you;
     (4) any other creditors of mine try to collect any debt I owe them
through court proceedings;
     (5) I die, am declared incompetent, make an assignment for the benefit of
creditors, or become insolvent (either because my liabilities exceed my assets
or I am unable to pay my debts as they become due);
     (6) I make any written statement or provide any financial information that
is untrue or inaccurate when it was provided;
     (7) I do or fail to do something which causes you to believe that you will
have difficulty collecting the amount I owe you;
     (8) any collateral security this note is used in a manner or for purpose
which threatens confiscation by a legal authority;
     (9) I change my name or assume an additional name without first notifying
you;
     (10) I fail to plant, cultivate and harvest crops in due season;
     (11) any loan proceeds are used for a purpose that will contribute to
excessive erosion of highly erodible land, or to the conversion of wetlands to
produce an agricultural commodity, as explained in C.F.R. Part 1940, Subpart G,
Exhibit M.
REMEDIES: If I am in default on this note, you have, but are not limited to, the
following remedies:
     (1) You may demand immediate payment of everything I owe under this note;
     (2) You may set off this debt against any right I have to the payment of
money from you, subject to the terms of the "SET-OFF" paragraph;
     (3) You may demand security, additional security, or additional parties to
be obligated to pay this note as a condition for not using another remedy;
     (4) You may refuse to make advances to me or allow me to make credit
purchases;
     (5) You may use any remedy you have under state or federal law.
     If you choose one of these remedies, you do not give up your right to use
any other remedy later. By waiving your right to declare an event to be a
default, you do not waive your right to later consider the event as default if
it continues to happen again.
COLLECTION COSTS AND ATTORNEY'S FEES: I will pay all costs of collection,
replevin (an action for the recovery of property wrongfully taken or detained),
or any other or similar type of cost if I am in default.
     In addition, if you hire an attorney to collect this note, I will pay
attorney's fees plus the costs (except where prohibited by law). To the extent
permitted by the United States Bankruptcy Code, I will also pay the reasonable
attorney's fees and costs you are charged to collect this debt as awarded by any
court under the Bankruptcy Code's jurisdiction.
WAIVER:  I give up my rights to require you to:
     (1) demand payment of amounts due (presentment);
     (2) obtain official certification of nonpayment (protest);
     (3) give notice that amounts due have not been paid (notice of dishonor).
     I waive any defenses I have based on suretyship or impairment of
collateral.
     OBLIGATIONS INDEPENDENT: I must pay this note even if someone else has also
agreed to pay it (by, for example, signing this form or a separate guarantee or
endorsement).
     You may sue me alone, anyone else obligated on this note, or any number of
us together, to collect this note. You may do so without any notice that it has
not been paid (notice of dishonor).
     You may, without notice, release any party to the agreement without
releasing any other party.
     If you give up any of your rights, with or without notice, it will not
affect my duty to pay this note.
     Any extension of new credit to any of us, or renewal of this note by all or
less than all of us, will not release me from my duty to pay it. (Of course, you
are entitled to only one payment in full.) You may extend this note or the debt
represented by this note, or any portion of the note of debt, from time to time
without limit or notice. You may do this without affecting my liability for
payment of the note.
     I will not assign my obligation under this agreement without your prior
written approval.
CREDIT INFORMATION: I authorize you to obtain credit information about me from
time to time (for example, by requesting a credit report) and to report to
others your credit experience with me (such as a credit reporting agency). I
will provide you, at your request, accurate, correct and complete financial
statements or information you need.
NOTICE: Unless otherwise required by law, you will give any notice to me by
delivering it or mailing it by first class mail to my last known address. My
current address is on page 1. I will inform you in writing of any change in my
address. I will give any notice to you by mailing it first class to your address
stated on page 1 of this agreement, or to any other address you give me.
<TABLE>
<CAPTION>

  DATE OF     PRINCIPAL        BORROWER'S         PRINCIPAL          PRINCIPAL         INTEREST           INTEREST         INTEREST
TRANSACTION    ADVANCE          INITIALS           PAYMENTS           BALANCE            RATE             PAYMENTS           PAID
                             (not required)                                                                                THROUGH:
<S>           <C>            <C>                  <C>                <C>              <C>                 <C>              <C>
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /
     /   /         $                                    $                 $                %                 $              /   /

</TABLE>

                                                                   (page 2 of 2)

<PAGE>   3
<TABLE>
<S><C>
BORROWER'S NAME AND ADDRESS                  LENDER'S NAME AND ADDRESS                       LOAN DESCRIPTION (Loan)

CHORUS CORPORATION                           NORTH AMERICAN BANKING                          Number          3003689
                                                                                                    --------------------------
4900 CONSTELLATION DRIVE                     COMPANY
VADNAIS HEIGHTS, MN 55127                    2230 ALBERT STREET                              Amount $        600,000.00
                                                                                                     -------------------------
                                             ROSEVILLE, MN 55113
                                                                                             Date     DECEMBER 14, 1999
                                                                                                  ----------------------------
</TABLE>

                               YEAR 2000 ADDENDUM

As part of Borrower's loan from Lender, describer above (Loan), Borrower agrees
to take all measures necessary to assure that Borrower's information technology
is in compliance with "Year 2000 requirements" and makes the following
representations and warranties as set forth in this Addendum. "Year 2000
requirements" include analyzing, programming, and testing all information
technology to accurately process date and time data, including, but not limited
to, calculating, comparing, and sequencing functions. Year 2000 requirements
apply to all processes that directly or indirectly affect Borrower's business,
such as accounting and processing procedures, as well as basic electronic
devices that are necessary to facility management, such as security systems,
elevators, and telephones.

Borrower represents that Borrower has a Year 2000 business plan (Plan) in place
to satisfy Year 2000 requirements. Borrower's Plan has been approved by
Borrower's management and includes an allocation of resources necessary to
complete the Plan as designed. Borrower agrees to allow Lender access to
Borrower's Plan and, if requested by Lender, Borrower will provide access to
Borrower's information technology systems to Lender or a third party for
purposes of determining Borrower's progress made under the Plan. Borrower agrees
that non-compliance with Borrower's Plan shall be deemed non-compliance with the
terms of Borrower's Loan.

With respect to Borrower's Plan, Borrower warrants as follows: (1) the Plan
includes a thorough Year 2000 assessment of all information technology systems
used by Borrower; (2) the Plan includes processes to address and prepare for the
interaction of Borrower's information technology systems with all external
information technology systems that is customary or foreseeable in the course of
operating Borrower's business; (3) the Plan provides for periodic evaluations of
Borrower's progress under the Plan; (4) the Plan includes an allocation of
resources to assure that the Plan is completed in a timely manner, as specified
in the Plan and agreeable to Lender; and (5) the Plan includes contingency
arrangements its for non-compliance with the Plan or the failure of Borrower's
vendors, partners, customers, or other related entities to adequately address
Year 2000 requirements.

To Lender's satisfaction, Borrower will keep Lender advised as to the progress
and timeliness of Borrower's efforts to fulfill Year 2000 requirements. Borrower
agrees that Lender has no responsibility for managing, advising, or executing
any of Borrower's efforts to comply with Year 2000 requirements.

By signing below, Borrower acknowledges receipt of a copy of this Addendum and
agrees to its terms as part of Borrower's Loan.

Dated    DECEMBER 14, 1999

For Borrower                                     For Lender

By X    /s/ Frank C. Kraemer                     By X    /s/ Bradley G. Huckle
     ----------------------------------               --------------------------
                                                 BRADLEY G. HUCKLE, PRESIDENT

     FRANK C. KRAEMER, CFO
     ----------------------------------
     Print Name and Title

By X
     ----------------------------------

     ----------------------------------
     Print Name and Title<PAGE>   1
                                                                    EXHIBIT 10.1

                                ESCROW AGREEMENT

          This Escrow Agreement (this "Agreement") is entered into as of
September 15, 2000 by and among Universal Compression Holdings, Inc., a Delaware
corporation ("Universal"), the Reuben James Helton Trust Dated January 24, 2000
as amended and in effect, a trust formed pursuant to the laws of the State of
Michigan (the "Trust"), Garlin R. Rhymes, as trustee of the Trust ("Trustee"),
Michael Pahl ("Pahl") (collectively, the Trust, Trustee and Pahl are referred to
as the "Stockholders"), Garlin R. Rhymes, as representative (the
"Representative") of the former stockholders of Gas Compression Services, Inc.,
a Michigan corporation ("GCSI"), and State Street Bank and Trust Company, a
Massachusetts trust company, as escrow agent (the "Escrow Agent"). Capitalized
terms used in this Agreement and not otherwise defined herein will have the
meanings given them in the Merger Agreement (as defined below). Universal and
the Stockholders are sometimes referred to herein collectively as the
"Interested Parties" or individually as the "Interested Party."

                                    RECITALS:

          A. Universal, Universal Compression, Inc., a Texas corporation and
wholly-owned subsidiary of Universal ("Sub"), GCSI and the Company Holders have
entered into an Agreement and Plan of Merger dated as of August 4, 2000 (the
"Merger Agreement") pursuant to which GCSI will merge with and into Sub (the
"Merger"), with Sub as the surviving corporation in the Merger.

          B. Pursuant to the Merger Agreement, the outstanding shares of capital
stock of GCSI are to be converted into the right to receive cash and an
aggregate of 1,420,631 shares of common stock, par value $.01 per share, of
Universal (the "Universal Common Stock") at the effective time of the Merger
(such shares, the "Merger Shares").

          C. The Merger Agreement provides that 9.5652% of the Merger Shares, or
135,887 Merger Shares (the "Escrow Shares"), are to be placed in an escrow
account (the "Escrow Account") to provide for the payment of certain obligations
that the Stockholders may owe to Universal and Sub and their affiliates,
directors, officers and employees (collectively, the "Covered Persons"). The
Escrow Shares of each Stockholder so required to be deposited in the Escrow
Account pursuant to this Agreement and the Merger Agreement are shown on Exhibit
A attached hereto.

          D. The parties hereto desire to establish the terms and conditions
pursuant to which the Escrow Shares will be deposited, held in and disbursed
from the Escrow Account.

          NOW, THEREFORE, the parties hereto agree as follows:

     1. Escrow and Recovery.

          (a) Escrow of Shares. Promptly after the Effective Time, the transfer
     agent of Universal (the "Transfer Agent"), will deposit the Escrow Shares,
     in the manner prescribed in Section 2, with the Escrow Agent, who will hold
     them in escrow to provide

<PAGE>   2

     for the payment of the obligations of the Stockholders to Covered Persons
     as set forth in this Agreement until the Escrow Agent is required to
     release such Escrow Shares pursuant to the terms of this Agreement. The
     Escrow Shares will include "Additional Escrow Shares" as that term is
     defined in Section 2(b) of this Agreement. The Escrow Agent agrees to
     accept delivery of the Escrow Shares and to hold in escrow and release such
     Escrow Shares subject to the terms and conditions of this Agreement.

          (b) Recovery. Pursuant to the Merger Agreement and that certain Letter
     Agreement for the transfer of insurance dated September 15, 2000, by and
     among Universal, Reuben James Helton and the Trust (the "Letter
     Agreement"), Universal is entitled to recover from the Escrow Shares the
     following amounts (each, a "Claim"): (i) any amounts to which the Covered
     Persons may be entitled pursuant to Article IX of the Merger Agreement;
     (ii) any amounts in excess of $250,000 payable to or on behalf of Ms.
     Colleen Yuncker in connection with the Merger Agreement, the transactions
     contemplated thereby, or any termination of or change in her employment in
     connection herewith or therewith (whether pursuant to the Agreement dated
     June 26, 2000 between Ms. Yuncker and the Company or any other agreement
     entered into by the GCS Entities prior to the Effective Time (as defined in
     the Merger Agreement) (such arrangements, the "Yuncker Arrangements"));
     (iii) the costs associated with the Retention Plan (as defined in the
     Merger Agreement); and (iv) any indemnity payments or interest thereon
     payable to Universal pursuant to the Letter Agreement; provided, however,
     that the maximum aggregate amount of Escrow Shares to which Universal shall
     be entitled for (ii) and (iii) above shall not exceed that number of Escrow
     Shares valued at $800,000 (with the actual number of shares based on the
     value at the release date calculated in accordance with Section 4(c)
     hereof), and provided further, that Universal shall be entitled to receive
     without Claim the Escrow Shares as provided in Section 2(c)(ii)(A).

          (c) Defense of Claim. Promptly after the receipt by Universal of
     notice or discovery of any Claim giving rise to recovery rights under this
     Agreement, Universal will give the Representative and the Escrow Agent
     written notice of such Claim in accordance with Section 3 hereof. Failure
     to give prompt notice of a Claim hereunder shall not affect the obligations
     of any party. Universal shall provide the Representative with reasonable
     access to its premises, books and records during Universal's regular
     business hours and shall furnish such information as the Representative
     shall reasonably request from time to time, in each case to the extent
     reasonably required in connection with the verification of such Claim;
     provided, however, that any records, information or documents that are not
     publicly available shall not be disclosed by the Representative unless
     disclosure of such records, information or documents is required by court
     or administrative order or as may be necessary or appropriate in connection
     with the resolution of any dispute regarding a Claim; and provided further,
     that if the Representative is ordered to disclose any of such records,
     documents or information, the Representative will provide Universal with
     prompt written notice of such requirement so that Universal may seek a
     protective order or other appropriate remedy if it so chooses, and, in the
     event that such protective order or other remedy is not obtained, or
     Universal waives compliance with the provisions hereof, the Representative
     agrees to furnish only that portion of such records, documents or
     information that the Representative is legally required to disclose in the
     written opinion of counsel to the Representative.

                                       2
<PAGE>   3

          (d) Time Period of Claims. No Claim or Claims hereunder may be made by
     Universal after June 30, 2002.

     2. Deposit of Escrow Shares; Release from Escrow.

          (a) Delivery of Escrow Shares. On the Closing Date, the Escrow Shares
     allocable to the Stockholders (the "Initial Escrow Shares") will be
     delivered by the Transfer Agent to the Escrow Agent in the form of a single
     duly authorized stock certificate with applicable restrictive legends
     issued in the name of "Embassy & Co." as nominee for the Escrow Agent. In
     the event Universal issues any Additional Escrow Shares (as defined below),
     such shares will be issued and delivered to the Escrow Agent and treated in
     the same manner as the Initial Escrow Shares. The Escrow Agent shall hold
     and administer the Escrow Shares (said Escrow Shares, together with any
     dividends and other distributions therefrom or proceeds thereof received by
     the Escrow Agent, collectively, the "Escrow Property") subject to the terms
     of this Agreement. The Escrow Agent shall have no responsibility for the
     genuineness, validity, market value, title or sufficiency for any intended
     purpose of the Escrow Property.

          (b) Dividends, Voting and Rights of Ownership. Except for tax-free
     dividends paid in stock declared with respect to the Escrow Shares pursuant
     to Section 305(a) of the Code ("Additional Escrow Shares"), any cash
     dividends, dividends payable in securities or other distributions of any
     kind made in respect of the Escrow Shares will be distributed promptly by
     Universal to the Stockholders proportionate to their respective interests
     as set forth in Exhibit A hereto. Neither the Escrow Agent nor its nominee
     shall be under any duty to take any action to preserve, protect, exercise
     or enforce any rights or remedies under or with respect to the Escrow
     Property (including without limitation the exercise of any voting or
     consent rights, conversion or exchange rights, defense of title,
     preservation of rights against prior matters or otherwise). Notwithstanding
     the foregoing, if the Escrow Agent is so requested in a written request of
     the Representative received by the Escrow Agent at least three Business
     Days prior to the date on which the Escrow Agent is requested therein to
     take such action (or such later date as may be acceptable to the Escrow
     Agent), the Escrow Agent shall execute or cause its nominee to execute, and
     deliver to the Representative a proxy or other instrument in the form
     supplied to it by the Representative for voting or otherwise exercising any
     right of consent with respect to any of the Escrow Shares held by it
     hereunder, to authorize therein the Stockholder's Representative to
     exercise such voting or consent authority in respect of the Escrow Shares
     (provided that the Escrow Agent shall not be obliged to execute any such
     proxy or other instrument if, in its judgment, the terms thereof may
     subject the Escrow Agent to any liabilities or obligations in its
     individual capacity). Subject to compliance with applicable law, the Escrow
     Agent shall not be under any duty or responsibility to forward to any
     Interested Party, or to notify any Interested Party with respect to, or to
     take any action with respect to, any notice, solicitation or other document
     or information, written or otherwise, received from an issuer or other
     person with respect to the Escrow Shares, including but not limited to,
     proxy material, tenders, options, the pendency of calls and maturities and
     expiration of rights. Each Stockholder will have the right to vote his
     share of the Escrow Shares deposited in the Escrow Account for the account
     of such Stockholder so long as such Escrow Shares are held in escrow, and
     Universal will take all

                                       3
<PAGE>   4

     reasonable steps necessary to allow the exercise of such rights. While the
     Escrow Shares remain in the Escrow Agent's possession pursuant to this
     Agreement, the Stockholders will retain and will be able to exercise all
     other incidents of ownership of said Escrow Shares that are not
     inconsistent with the terms and conditions hereof.

          (c) Distributions. The Escrow Shares shall be released and distributed
     as follows:

               (i) On June 30, 2001, the Escrow Agent will release from the
     Escrow Account to the Stockholders their pro rata portions (as provided in
     Section 2(d)) of all of the Escrow Shares except for (A) $1,800,000 of the
     Escrow Shares (with the actual number of shares based on the value at such
     release date calculated in accordance with Section 4(c) hereof), (B) any
     Escrow Shares (with the actual number of shares based on the value at such
     release date calculated in accordance with Section 4(c) of this Agreement)
     subject, in accordance with Section 4 hereof, to any then pending but
     unresolved Claims ("Pending Claim Collateral"), and (C) in the event that
     any Escrow Shares have been released to Universal in payment of any amounts
     owed pursuant to the Letter Agreement prior to such date (the "Letter
     Agreement Shares"), a number of Escrow Shares equal to the number of Letter
     Agreement Shares so released. Any Pending Claim Collateral held by the
     Escrow Agent as a result of the preceding sentence will be released to the
     Stockholders or released to Universal, as appropriate, promptly upon
     resolution of the specific Claim or Claims involved.

               (ii) On June 30, 2002, the Escrow Agent will (A) release from the
     Escrow Account to Universal $1,000,000 of the Escrow Shares (with the
     actual number of shares based on the value at such release date calculated
     in accordance with Section 4(c) hereof) or, to the extent the Escrow Shares
     in the Escrow Account have a value less than $1,000,000, all remaining
     Escrow Shares, (B) to the extent Escrow Shares remain in the Escrow Account
     after the release of Escrow Shares pursuant to Section 2(c)(ii)(A) hereof,
     hold in the Escrow Account and not release any then Pending Claim
     Collateral (with the actual number of shares based on the value at such
     release date calculated in accordance with Section 4(c) hereof) and (C)
     release from the Escrow Account to the Stockholders their pro rata portion
     (as provided in Section 2(d)) of all remaining Escrow Shares other than as
     provided in subclauses (A) and (B).

               (iii) In the event that any Pending Claim Collateral has not been
     released on or prior to the date which is seven years after its applicable
     Claim date, the Representative may, at its option, submit the amount of the
     Claim to arbitration in accordance with Section 10 hereof and the
     arbitrator(s) shall determine the value of the Claim, and any Escrow Shares
     (as determined in accordance with Section 4(c) of this Agreement) not
     needed to satisfy such Claim (as so determined by the arbitrator(s)) shall
     be released to the Stockholders.

          (d) Release of Shares. The Escrow Shares will be held by the Escrow
     Agent until required to be released pursuant to Section 2(c) above or
     Section 4, below. Upon the applicable release date or with respect to the
     Pending Claim Collateral, if any, within five Business Days after the
     release condition is met as confirmed by Universal and the Representative
     to the Escrow Agent in writing, the Escrow Agent will distribute to each

                                       4
<PAGE>   5

     Stockholder or Universal, as the case may be, the requisite number of
     Escrow Shares as of the applicable release date. Universal and the
     Representative undertake to deliver a timely notice to the Escrow Agent
     identifying the number of Escrow Shares to be released within such five
     business day period. Escrow Shares will be distributed pro rata to the
     respective Stockholders in proportion to their respective interests as set
     forth in Exhibit A; provided, however, that in the event any Letter
     Agreement Shares and Escrow Shares are thereafter distributed to the
     Stockholders as provided herein, then the pro rata portion of such Escrow
     Shares otherwise distributable to the Trust shall be reduced, and the pro
     rata portion of the Escrow Shares otherwise distributable to Pahl shall be
     correspondingly increased, by a number of such Escrow Shares equal to 10%
     of the number of such Letter Agreement Shares so released to Universal.
     Universal will take such action as may be necessary to cause stock
     certificates to be issued bearing any appropriate legends.

          (e) No Encumbrances. Except as otherwise provided in this Agreement,
     no Escrow Shares nor any beneficial interest therein may be pledged, sold,
     assigned or transferred, including by operation of law, by a Stockholder,
     or be taken or reached by any legal or equitable process in satisfaction of
     any debt or other liability of a Stockholder (other than such Stockholder's
     obligations under this Agreement), prior to the release to such Stockholder
     of the Escrow Shares by the Escrow Agent. Either Stockholder may
     distribute, transfer, convey or assign its obligations hereunder together
     with its right to receive Escrow Shares; provided, that the transferee of
     such right shall execute and deliver to the Escrow Agent, Universal and the
     other Stockholder(s) party hereto an Additional Party Counterpart in the
     form of Exhibit B hereto; and provided further, that such distribution,
     transfer, conveyance or assignment shall not adversely affect the rights of
     Universal, the Escrow Agent or the other Stockholder(s) party hereto as
     evidenced by their written acknowledgment and acceptance of such transfer.
     No such transfer shall be effective until there shall have been delivered
     to the Escrow Agent such fully executed Additional Party Counterpart,
     whereupon such transferee shall succeed in all respects to the rights and
     obligations of the related transferor.

          (f) Power to Transfer Escrow Shares. The Escrow Agent is hereby
     granted the power to effect any transfer of Escrow Shares contemplated by
     this Agreement. Universal will cooperate with the Escrow Agent in promptly
     issuing stock certificates to effect such transfers.

          (g) Any distribution of all or a portion of the Escrow Shares to the
     Stockholders shall be made by delivery of the stock certificate held by the
     Escrow Agent representing the Escrow Shares to the Transfer Agent, endorsed
     for transfer, with instruction to the Transfer Agent to transfer and issue
     such aggregate number of Escrow Shares being distributed, allocated among
     the Stockholders based upon his or her pro rata share according to the
     percentages set forth on Schedule A (as nearly as practicable, and, if
     applicable, as adjusted for the future release of any Letter Agreement
     shares as provided in Section 2(d)), in each case by issuing to each such
     Stockholder a stock certificate representing such allocated shares,
     registered in his or her name set forth on Schedule A and mailed by first
     class mail to such Stockholder's address set forth on Schedule A (or to
     such other address as such Stockholder may have previously provided

                                       5
<PAGE>   6

     to the Escrow Agent in writing); and, if less than all the then remaining
     Escrow Shares are to be so distributed and transferred, the Escrow Agent
     shall instruct the Transfer Agent to issue and return to the Escrow Agent
     (or its nominee, if the Escrow Agent shall so instruct) a stock certificate
     representing the remaining Escrow Shares. The Escrow Agent shall have no
     liability for the actions or omissions of, or any delay on the part of, the
     Transfer Agent in connection with the foregoing.

          (h) Any distribution of all or a portion of the Escrow Shares to
     Universal shall be made by delivery of the stock certificate held by the
     Escrow Agent representing the Escrow Shares to the Transfer Agent, endorsed
     for transfer, with instruction to the Transfer Agent to transfer to
     Universal or its designee or cancel the released Escrow Shares as requested
     by Universal; and, if less than all the then remaining Escrow Shares are to
     be so distributed and transferred or canceled, the Escrow Agent shall
     instruct the Transfer Agent to issue and return to the Escrow Agent (or its
     nominee, if the Escrow Agent shall so instruct) a stock certificate
     representing the remaining Escrow Shares. The Escrow Agent shall have no
     liability for the actions or omissions of, or any delay on the part of, the
     Transfer Agent in connection with the foregoing.

     3. Notice of Claim.

          (a) Each notice of a Claim by Universal (the "Notice of Claim") will
     be in writing and will contain the following information to the extent it
     is reasonably available to Universal:

               (i) Universal's good faith estimate of the reasonably foreseeable
     maximum amount of the alleged amounts related to the Claim; and

               (ii) A brief description in reasonable detail of the facts,
     circumstances or events giving rise to the alleged amounts based on
     Universal's good faith belief thereof, including, without limitation, if
     applicable, the identity and address of any third party claimant and copies
     of any formal demand or complaint.

          (b) The Escrow Agent will not transfer any of the Escrow Shares held
     in the Escrow Account to Universal pursuant to a Notice of Claim until such
     Notice of Claim has been resolved in accordance with Section 4 below.

     4. Resolution of Notice of Claim and Transfer of Escrow Shares. Any Notice
of Claim received by the Representative and the Escrow Agent pursuant to Section
3 above will be resolved as follows:

          (a) Uncontested Claims. In the event that the Representative does not
     contest a Notice of Claim in writing to the Escrow Agent within 30 calendar
     days after a Notice of Claim containing a statement of the amounts claimed
     is delivered pursuant to Section 9 below, the Escrow Agent will promptly
     distribute to Universal that number of Escrow Shares having a value
     (determined pursuant to Section 4(c) hereof) equal to the amounts specified
     in the Notice of Claim and notify the Representative of such transfer.

                                       6
<PAGE>   7

          (b) Contested Claims. In the event that the Representative gives
     written notice to Universal and the Escrow Agent contesting all, or a
     portion of, the Claim specified in a Notice of Claim (a "Contested Claim")
     within the 30-day period described above (which contesting notice shall
     specify the Claim, or portion or amount thereof, being contested), matters
     that are subject to any Claim described in Sections 1(b)(i) or (iv) of this
     Agreement, including third party Claims brought against Universal, Sub or
     the GCSI Entities or any of their affiliates in litigation or arbitration
     will await the final nonappealable decision, award or settlement of such
     Claim, while all other disputes, controversies or claims that arise between
     Universal, Sub or GCSI, on the one hand, and the Stockholders, on the other
     hand, (including their agents and employees) out of this Agreement, or the
     breach, termination or invalidity thereof (all "Arbitrable Claims"), will
     be settled by agreement between Representative and Universal, or failing
     such agreement, by binding arbitration pursuant to Section 10 hereof. This
     Section 4(b) is not intended to alter the parties rights or remedies under
     the Merger Agreement or the Letter Agreement. Any portion of the Notice of
     Claim that is not contested will be resolved as set forth above in Section
     4(a). The final decision of the arbitrator will be furnished to the Escrow
     Agent, the Representative, the Stockholders and Universal in writing and
     will constitute a conclusive determination of the issue in question,
     binding upon the Stockholders, the Representative, Universal, Sub and all
     Covered Persons. After notice that the Notice of Claim is contested by the
     Representative, the Escrow Agent will not release any Escrow Shares from
     the Escrow Account, except as provided in Section 2(c) and notwithstanding
     the expiration of the applicable release date, until (i) execution of a
     settlement agreement by Universal and the Representative setting forth a
     resolution of the Notice of Claim, or (ii) receipt of a copy of the final
     decision of the court or award of the arbitrator(s), as applicable, subject
     to Section 2(c)(iii) above.

          (c) Determination of Amount of Claims. Pursuant to Section 4(a) or (b)
     above, any amount owed to Universal for, or to be held pending resolution
     of, any Claim, subject to the provisions of the Merger Agreement with
     respect to the Threshold, will be payable to Universal for, or withheld by
     the Escrow Agent pending resolution of, such Claim out of the applicable
     Escrow Shares then held by the Escrow Agent at a per share value for all
     Escrow Shares equal to the weighted average sales price of Universal Common
     Stock as quoted on the New York Stock Exchange (or other principal
     securities exchange on which such shares are then traded) for the 20
     consecutive trading days up to the third business day immediately preceding
     the date of such payment or, with respect to Pending Claim Collateral, the
     applicable release date. As to the calculation of such per share value, the
     Escrow Agent may request and rely upon a written certification from
     Universal and the Representative. In no event will the amount owed for any
     Claim with respect to the Yuncker Arrangements, the Retention Plan or the
     Letter Agreement be subject to the Threshold, and the amount owed for
     Claims for the Yuncker Arrangements and the Retention Plan in the aggregate
     shall not exceed $800,000.

     5. Concerning the Escrow Agent.

          (a) Each Interested Party and the Representative acknowledge and agree
     that the Escrow Agent (i) shall not be responsible for any of the
     agreements referred to or described herein (including without limitation
     the Merger Agreement and the Letter

                                       7
<PAGE>   8

     Agreement), or for determining or compelling compliance therewith, and
     shall not otherwise be bound thereby, (ii) shall be obligated only for the
     performance of such duties as are expressly and specifically set forth in
     this Agreement on its part to be performed, each of which is ministerial
     (and shall not be construed to be fiduciary) in nature, and no implied
     duties or obligations of any kind shall be read into this Agreement against
     or on the part of the Escrow Agent, (iii) shall not be obligated to take
     any legal or other action hereunder which might in its judgment involve or
     cause it to incur any expense or liability unless it shall have been
     furnished with acceptable indemnification, (iv) may rely on and shall be
     protected in acting or refraining from acting upon any written notice,
     instruction (including, without limitation, wire transfer instructions,
     whether incorporated herein or provided in a separate written instruction),
     instrument, statement, certificate, request or other document furnished to
     it hereunder and believed by it to be genuine and to have been signed or
     presented by the proper person, and shall have no responsibility for making
     inquiry as to or determining the genuineness, accuracy or validity thereof,
     or of the authority of the person signing or presenting the same, and (v)
     may consult counsel satisfactory to it, including in-house counsel, and the
     opinion or advice of such counsel in any instance shall be full and
     complete authorization and protection in respect of any action taken,
     suffered or omitted by it hereunder in good faith and in accordance with
     the opinion or advice of such counsel. Documents and written materials
     referred to in this paragraph include, without limitation, e-mail and other
     electronic transmissions capable of being printed, whether or not they are
     in fact printed; and any such e-mail or other electronic transmission may
     be deemed and treated by the Escrow Agent as having been signed or
     presented by a person if it bears, as sender, the person's e-mail address.

          (b) The Escrow Agent shall not be liable to anyone for any action
     taken or omitted to be taken by it hereunder except in the case of the
     Escrow Agent's gross negligence or willful misconduct in breach of the
     terms of this Agreement. In no event shall the Escrow Agent be liable for
     indirect, punitive, special or consequential damage or loss (including but
     not limited to lost profits) whatsoever, even if the Escrow Agent has been
     informed of the likelihood of such loss or damage and regardless of the
     form of action.

          (c) The Escrow Agent shall have no more or less responsibility or
     liability on account of any action or omission of any book-entry
     depository, securities intermediary or other subescrow agent employed by
     the Escrow Agent than any such book-entry depository, securities
     intermediary or other subescrow agent has to the Escrow Agent, except to
     the extent that such action or omission of any book-entry depository,
     securities intermediary or other subescrow agent was caused by the Escrow
     Agent's own gross negligence or willful misconduct in breach of this
     Agreement.

          (d) Notwithstanding any term appearing in this Agreement to the
     contrary, in no instance shall the Escrow Agent be required or obligated to
     distribute any Escrow Property (or take other action that may be called for
     hereunder to be taken by the Escrow Agent) sooner than two Business Days
     after (i) it has received the applicable documents required under this
     Agreement in good form, or (ii) passage of the applicable time period (or
     both, as applicable under the terms of this Agreement), as the case may be.

                                       8
<PAGE>   9

          (e) Conflicting Instructions. In the event conflicting demands are
     made or conflicting notices are served upon the Escrow Agent with respect
     to the Escrow Account, the Escrow Agent will have the absolute right, at
     the Escrow Agent's election, to do either or both of the following: (i)
     resign, in which case a successor escrow agent will appointed pursuant to
     Section 14 hereof or (ii) file a suit in interpleader and obtain an order
     from a court of competent jurisdiction requiring the parties to interplead
     and litigate in such court their several claims and rights among
     themselves. In the event such interpleader suit is brought, the Escrow
     Agent will thereby be fully released and discharged from all further
     obligations imposed upon it under this Agreement, and Universal will pay
     the Escrow Agent (subject to reimbursement from the Stockholders pursuant
     to Section 13 hereof) all costs, expenses and reasonable attorneys' fees
     expended or incurred by the Escrow Agent pursuant to the exercise of the
     Escrow Agent's rights under this Section 5 (such costs, fees and expenses
     will be treated as extraordinary fees and expenses for the purposes of
     Section 13 hereof).

          (f) The Escrow Agent may execute any of its powers or responsibilities
     hereunder and exercise any rights hereunder either directly or by or
     through its agents or attorneys. Nothing in this Agreement shall be deemed
     to impose upon the Escrow Agent any duty to qualify to do business or to
     act as a fiduciary in any jurisdiction other than the Commonwealth of
     Massachusetts.

          (g) The Escrow Agent shall not be responsible for delays or failures
     in performance resulting from acts beyond its control. Such acts shall
     include but not be limited to acts of God, strikes, lockouts, riots, acts
     of war, epidemics, governmental regulations superimposed after the fact,
     fire, communication line failures, computer viruses, power failures,
     earthquakes or other disasters.

     6. Compensation, Expense Reimbursement and Indemnification.

          (a) Each of the Interested Parties agrees, jointly and severally, (i)
     to pay or reimburse the Escrow Agent for its reasonable attorney's fees and
     expenses incurred in connection with the preparation of this Agreement and
     (ii) to pay the Escrow Agent's compensation for its normal services
     hereunder in accordance with the fee schedule attached hereto as Exhibit C
     and made a part hereof, which may be subject to change hereafter by the
     Escrow Agent on an annual basis.

          (b) Each of the Interested Parties agrees, jointly and severally, to
     reimburse the Escrow Agent on demand for all costs and expenses incurred in
     connection with the administration of this Agreement or the escrow created
     hereby or the performance or observance of its duties hereunder which are
     in excess of its compensation for normal services hereunder, including
     without limitation, payment of any reasonable legal fees and expenses
     incurred by the Escrow Agent in connection with resolution of any claim by
     any party hereunder.

          (c) EACH OF THE INTERESTED PARTIES, JOINTLY AND SEVERALLY (EACH, AN
     "INDEMNIFYING PARTY" AND TOGETHER, THE "INDEMNIFYING PARTIES"), HEREBY
     COVENANTS AND AGREES TO REIMBURSE, INDEMNIFY AND HOLD HARMLESS THE

                                       9
<PAGE>   10

     ESCROW AGENT AND THE ESCROW AGENT'S EMPLOYEES AND AGENTS (SEVERALLY AND
     COLLECTIVELY, THE "ESCROW AGENT"), FROM AND AGAINST ANY LOSS, LIABILITY,
     DAMAGE, COST AND EXPENSE OF ANY NATURE INCURRED BY THE ESCROW AGENT ARISING
     OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR WITH THE ADMINISTRATION OF
     ITS DUTIES HEREUNDER, INCLUDING BUT NOT LIMITED TO REASONABLE ATTORNEY'S
     FEES AND OTHER COSTS AND EXPENSES OF DEFENDING OR PREPARING TO DEFEND
     AGAINST ANY CLAIM OF LIABILITY UNLESS AND EXCEPT TO THE EXTENT SUCH LOSS,
     LIABILITY, DAMAGE, COST AND EXPENSE SHALL BE CAUSED BY THE ESCROW AGENT'S
     GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT. THE FOREGOING INDEMNIFICATION AND
     AGREEMENT TO HOLD HARMLESS SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT.

          (d) Participation in Defense of Claim Against Escrow Agent. Each
     Indemnifying Party may participate at its own expense in the defense of any
     claim or action that may be asserted against the Escrow Agent and, if the
     Indemnifying Parties so elect, the Indemnifying Parties may assume the
     defense of such claim or action; provided, however, that if there exists a
     conflict of interest that would make it inappropriate for the same counsel
     to represent both the Escrow Agent and the Indemnifying Parties, the Escrow
     Agent's retention of separate counsel shall be reimbursable as hereinabove
     provided. The Escrow Agent's right to indemnification hereunder shall
     survive the Escrow Agent's resignation or removal as the Escrow Agent and
     shall survive the termination of this Agreement by lapse of time or
     otherwise.

          (e) Notice of Claim Against Escrow Agent. The Escrow Agent hereby
     represents that the Escrow Agent will notify each Indemnifying Party by
     letter, or by telephone or telex confirmed by letter, of any receipt by the
     Escrow Agent of a written assertion of a claim against the Escrow Agent, or
     any action commenced against the Escrow Agent, within ten calendar days
     after the Escrow Agent's receipt of written notice of such claim. However,
     the Escrow Agent's failure to so notify each Indemnifying Party shall not
     operate in any manner whatsoever to relieve an Indemnifying Party from any
     liability that it may have otherwise than on account of this Section 6,
     unless the defense of such claim is materially prejudiced by the failure of
     the Escrow Agent to notify the Indemnifying Parties within such ten-day
     period.

          (f) Without altering or limiting the joint and several liability of
     any of the Interested Parties to the Escrow Agent hereunder, each of the
     Interested Parties agrees as among themselves that they shall share
     responsibility for amounts payable to the Escrow Agent as specified in
     Section 13 hereof.

     7. Tax Indemnification. Each of the Interested Parties agrees, jointly and
severally, with the Escrow Agent (i) to assume any and all obligations imposed
now or hereafter on the Escrow Agent by any applicable tax law with respect to
any payment or distribution of the Escrow Property or performance of other
activities under this Agreement (and as among the Interested Parties, each
Interested Party agrees to assume any obligations imposed now or hereafter on
them by any applicable tax law with respect to any payment or distribution of
the Escrow Property), (ii) to instruct the Escrow Agent in writing with respect
to the Escrow Agent's

                                       10
<PAGE>   11

responsibility for withholding and other taxes, assessments or other
governmental charges, and to instruct the Escrow Agent with respect to any
certifications and governmental reporting that may be required under any tax
laws or regulations that may be applicable in connection with its acting as
Escrow Agent under this Agreement, and (iii) to indemnify and hold the Escrow
Agent harmless from any liability or obligation on account of taxes,
assessments, additions for late payment, interest, penalties, expenses and other
governmental charges that may be assessed or asserted against the Escrow Agent
in connection with, on account of or relating to the Escrow Property, the
management established hereby, any payment or distribution of or from the Escrow
Property pursuant to the terms hereof or other activities performed under the
terms of this Agreement, including without limitation any liability for the
withholding or deduction of (or the failure to withhold or deduct) the same, and
any liability for failure to obtain proper certifications or to report properly
to governmental authorities in connection with this Agreement, including costs
and expenses (including reasonable legal fees and expenses), interest and
penalties. The foregoing indemnification and agreement to hold harmless shall
survive the termination of this Agreement.

     8. Stockholders' Representative. For purposes of this Agreement, the
Stockholders hereby consent to, confirm and irrevocably effect the appointment
of Garlin R. Rhymes as the Representative, as representative of the
Stockholders, and as the attorney-in-fact for and on behalf of each Stockholder,
and, subject to the express limitations set forth below, the taking by the
Representative of any and all actions and the making of any decisions required
or permitted to be taken by him under this Agreement, including, without
limitation, the exercise of the power to (i) authorize delivery to Universal of
the Escrow Shares or any portion thereof, in satisfaction of Claims, (ii) agree
to, negotiate, enter into settlements and compromises of, and demand and conduct
arbitration and comply with orders of courts and awards of arbitrators with
respect to such Claims, (iii) resolve any Claims, and (iv) take all actions
necessary in the judgment of the Representative for the accomplishment of the
foregoing and all of the other terms, conditions and limitations of this
Agreement. The Representative will have unlimited authority and power to act on
behalf of each Stockholder with respect to this Agreement and the disposition,
settlement or other handling of all Claims, rights or obligations arising under
this Agreement so long as all Stockholders are treated in the same manner. The
Stockholders will be bound by all actions taken by the Representative in
connection with this Agreement, and Universal will be entitled to rely on any
action or decision of the Representative. In performing his functions hereunder,
the Representative will not be liable to the Stockholders in the absence of
gross negligence or willful misconduct. In the event the Representative becomes
unavailable or unwilling to continue in his capacity herewith, the
Representative may resign and be discharged from his duties or obligations
hereunder by giving his resignation to the parties to this Agreement, specifying
a date not less than ten days following such notice date of when such
resignation will take effect and, in that event, James Bauters will be deemed to
be appointed by the Stockholders as the new Representative. In the event Mr.
Bauters then becomes unavailable or unwilling to continue in his capacity as
Representative, he may resign and be discharged from his duties or obligations
hereunder by giving his resignation to the parties to this Agreement, specifying
a date not less than ten days following such notice date of when such
resignation will take effect. In that event, the Stockholder(s) owning a
majority of the Escrow Shares will designate a successor Representative prior to
the expiration of such ten-day period by giving written notice to the Escrow
Agent and Universal. If the Stockholders have not appointed a successor
Representative

                                       11
<PAGE>   12

and notified Universal of the identity and address of such successor
Representative within such ten-day period, Universal shall be relieved of the
obligation to send notices to or obtain consents from the Representative while
there is no Representative and, for purposes of this Agreement, in each such
case, it shall be deemed that the Representative has received the required
notice and/or approved such action. Until notified in writing by the
Representative that he has resigned, the Escrow Agent may rely conclusively and
act upon the directions, instructions and notices of the Representative named
above and, thereafter, upon the directions, instructions and notices of any
successor Representative named in a writing executed by a majority-in-interest
of the Stockholders filed with the Escrow Agent.

     9. Notices. All notices, instructions and other communications required or
permitted to be given hereunder or necessary or convenient in connection
herewith must be in writing and will be deemed delivered (i) when personally
served or when delivered by telex or facsimile (to the telex or facsimile number
of the person to whom the notice is given), (ii) the first business day
following the date of deposit with an overnight courier service or (iii) on the
earlier of actual receipt or the third business day following the date on which
the notice is deposited in the United States mail, first class certified,
postage prepaid, addressed as follows:

If to the Escrow Agent:    State Street Bank and Trust Company
                           Corporate Trust
                           Lafayette Corporate Center
                           2 Avenue De Lafayette
                           6th Floor South
                           Boston, Massachusetts 02110
                           Attention: Christina Mullen
                           Facsimile: 617/662-1463

If to Universal:           Universal Compression Holdings, Inc.
                           4440 Brittmoore Road
                           Houston, Texas 77041
                           Attention: Valerie L. Banner, Senior
                              Vice President and General Counsel
                           Facsimile: 713/466-6720

With a copy to:            King & Spalding
                           1100 Louisiana, Suite 3300
                           Houston, Texas 77002
                           Attention: Christine B. LaFollette
                           Facsimile: 713/751-3290

If to the Representative:  Garlin R. Rhymes
                           24106 Bay Hill Blvd.
                           Katy, Texas 77494
                           Facsimile: (281) 392-0832

                                       12
<PAGE>   13

With a copy to:            Mayor, Day, Caldwell & Keeton, L.L.P.
                           700 Louisiana, Suite 1900
                           Houston, Texas 77002
                           Attention: Ms. Kathleen M. Kopp
                           Facsimile: (713) 225-7047

or to such other address as Universal, the Representative or the Escrow Agent,
as the case may be, designates in a writing delivered to each of the other
parties hereto.

     10. Arbitration.

          (a) Universal, the Stockholders and the Representative hereby agree
     that all Arbitrable Claims, except those that involve the Escrow Agent
     pursuant to Section 11 hereof, shall be submitted to, and determined by,
     binding arbitration. Nothing in this Section 10 is intended to alter the
     parties rights or remedies under the Merger Agreement or the Letter
     Agreement. Such arbitration shall be conducted pursuant to the Commercial
     Arbitration Rules (the "Rules") then in effect of the American Arbitration
     Association, except to the extent such rules are inconsistent with this
     Section 10. If the amount in controversy in the arbitration exceeds
     $1,000,000, exclusive of interest, attorneys' fees and costs, the
     arbitration shall be conducted by a panel of three neutral arbitrators with
     Universal and the Representative each selecting one arbitrator and the
     third arbitrator being chosen by the two served. Otherwise, the arbitration
     shall be conducted by a single neutral arbitrator mutually agreed upon by
     the parties, or if no such agreement is reached then by the panel of three
     arbitrators. The arbitrator(s) shall be selected pursuant to the Rules and
     shall be a person or persons experienced in the oil and gas industry and
     the nature of the issues to be arbitrated. Exclusive venue for such
     arbitration shall be in Houston, Texas. The arbitrator(s) shall apply the
     internal laws of the State of Texas (without regard to conflict of law
     rules) in determining the substance of the dispute, controversy or claim
     and shall decide the same in accordance with the applicable usages and
     terms of trade. The proceedings shall be governed by the Texas Rules of
     Civil Procedure and the Texas Rules of Evidence. The arbitrator(s)' award
     shall be in writing and shall set forth the findings and conclusions upon
     which the arbitrator(s) based the award. The prevailing party in any such
     arbitration shall be entitled to recover its reasonable attorneys' fees,
     costs and expenses incurred in connection with the arbitration. Any award
     pursuant to such arbitration shall be final and binding upon Universal, the
     Stockholders and the Representative, and judgment on the award may be
     entered in any federal or state court with appropriate jurisdiction sitting
     or located in Harris County, Texas. The provisions of this Section 10 shall
     survive the termination of this Agreement.

          (b) The arbitration shall commence within 60 days after the selection
     of neutral arbitrator(s) in accordance with the provisions of this Section
     10. In fulfilling his or her duties, the arbitrator(s) may consider such
     matters as, in the opinion of the arbitrator(s), are necessary or helpful
     to render an appropriate decision. All discovery shall be expedited,
     consistent with the nature and complexity of the claim or dispute and
     consistent with fairness and justice. The arbitrator(s) shall have the
     power to compel any party to comply with discovery requests of the other
     parties and to issue binding orders

                                       13
<PAGE>   14

     relating to any discovery dispute which shall be enforceable in the same
     manner as awards. The arbitrator(s) also shall have the power to impose
     sanctions for abuse or frustration of the arbitration process, including
     without limitation, the refusal to comply with orders of the arbitrator(s)
     relating to discovery and compliance with subpoenas.

          (c) Without limiting the enforceability or scope of this Section 10,
     Universal, the Stockholders and the Representative agree that if a
     controversy or claim between them pursuant to this Section 10 arises out of
     or relates to this Agreement and results in litigation, the courts of
     Harris County, Texas or the courts of the United States of America located
     in Harris County, Texas shall have jurisdiction to hear and decide such
     matter, and Universal, the Stockholders and the Representative hereby
     submit to the jurisdiction of such courts. The foregoing notwithstanding,
     Universal, the Stockholders and the Representative may seek and obtain from
     a court of competent jurisdiction a temporary restraining order, temporary
     injunction or other temporary emergency relief without first having to
     submit such dispute to arbitration.

          (d) Governing Law. With respect to matters governed by this Section
     10, this Agreement will be governed by and construed in accordance with the
     internal laws of the State of Texas without regard to conflict of law
     principles and will be binding upon, and inure to the benefit of, the
     parties hereto and their respective successors and permitted assigns.

     11. Dispute Resolution Involving Escrow Agent or Escrow Property.

          (a) It is understood and agreed that, should any dispute arise with
     respect to this Agreement between the Interested Parties and the Escrow
     Agent or any claim made by the Escrow Agent with respect to the delivery,
     ownership, right of possession, and/or disposition of the Escrow Property
     other than the resolution of Claims pursuant to Section 4 or 10 hereof, or
     should any claim be made upon the Escrow Agent or the Escrow Property by a
     third party, the Escrow Agent upon receipt of notice of such dispute or
     claim is authorized and shall be entitled (at its sole option and election)
     to retain in its possession without liability to anyone, all or any of said
     Escrow Property until such dispute shall have been settled either by the
     mutual written agreement of the parties involved or by a final order,
     decree or judgment of a court in the United States of America, the time for
     perfection of an appeal of such order, decree or judgment having expired.
     The Escrow Agent may, but shall be under no duty whatsoever to, institute
     or defend any legal proceedings which relate to the Escrow Property.

          (b) Universal, the Stockholders, the Representative and the Escrow
     Agent further agree that if a controversy or claim between them which (i)
     arises out of or relates to this Agreement or the delivery, ownership,
     right of possession, and/or disposition of the Escrow Property, other than
     the resolution of Claims pursuant to Section 4 or 10 hereof, (ii) involves
     the Escrow Agent and (iii) results in litigation, then the courts of the
     State of New York or the courts of the United States of America located in
     the State of New York shall have jurisdiction to hear and decide such
     matter, and Universal, the Stockholders, the Representative and the Escrow
     Agent hereby submit to the jurisdiction of such courts. This Section 11 is
     intended to apply only to the above limited matters involving the

                                       14
<PAGE>   15

     Escrow Agent or the Escrow Property and is not intended to alter the
     resolution agreement set forth in Section 4 hereof or the arbitration
     agreement set forth in Section 10 hereof. The foregoing notwithstanding,
     Universal, the Stockholders, the Representative and the Escrow Agent may
     seek and obtain from a court of competent jurisdiction a temporary
     restraining order, temporary injunction or other temporary emergency relief
     without first having to submit such dispute to arbitration.

          (c) Each of the Interested Parties and the Representative hereby
     absolutely and irrevocably consent and submit to the jurisdiction of the
     courts in the State of New York and of any Federal court located in said
     State in connection with any actions or proceedings brought against the
     Interested Parties (or any of them) or the Representative by the Escrow
     Agent arising out of or relating to this Escrow Agreement. In any such
     action or proceeding, the Interested Parties each hereby absolutely and
     irrevocably (i) waives any objection to jurisdiction or venue, (ii) waives
     personal service of any summons, complaint, declaration or other process,
     and (iii) agrees that the service thereof may be made by certified or
     registered first-class mail directed to such party, as the case may be, at
     their respective addresses in accordance with Section 9 hereof.

          (d) WITH RESPECT TO MATTERS GOVERNED BY THIS SECTION 11, THE ESCROW
     AGENT, THE INTERESTED PARTIES AND THE REPRESENTATIVE HEREBY WAIVE A TRIAL
     BY JURY OF ANY AND ALL ISSUES ARISING IN ANY ACTION OR PROCEEDING BETWEEN
     THEM OR THEIR SUCCESSORS OR ASSIGNS, UNDER OR IN CONNECTION WITH THIS
     AGREEMENT OR ANY OF ITS PROVISIONS OR ANY NEGOTIATIONS IN CONNECTION
     HEREWITH.

          (e) Governing Law. With respect to matters governed by this Section
     11, this Agreement will be governed by and construed in accordance with the
     internal laws of the State of New York without regard to conflict of law
     principles and will be binding upon, and inure to the benefit of, the
     parties hereto and their respective successors and permitted assigns.

     12. General.

          (a) Governing Law; Assigns. Except as otherwise provided in Section 10
     hereof, this Agreement will be governed by and construed in accordance with
     the internal laws of the State of New York without regard to conflict of
     law principles and will be binding upon, and inure to the benefit of, the
     parties hereto and their respective successors and permitted assigns.
     Except as otherwise provided in this Agreement, no party to this Agreement
     may assign all or any portion of its or their rights, obligations or
     liabilities under this Agreement without the prior written consent of the
     other parties hereto. Any attempted assignment in violation of this Section
     12(a) shall be voidable.

          (b) Counterparts. This Agreement may be executed in two or more
     counterparts, each of which will be deemed an original, but all of which
     together will constitute one and the same instrument.

                                       15
<PAGE>   16

          (c) Entire Agreement. This Agreement constitutes the entire
     understanding and agreement of the parties with respect to the subject
     matter of this Agreement and supersedes all prior agreements or
     understandings, written or oral, between the parties with respect to the
     subject matter hereof.

          (d) Headings. The section headings contained in this Agreement are
     inserted for convenience only and shall not affect in any way the meaning
     or interpretation of this Agreement.

          (e) Severability. Any term or provision of this Agreement that is
     invalid or unenforceable in any situation in any jurisdiction shall not
     affect the validity or enforceability of the remaining terms and provisions
     hereof or the validity or enforceability of the offending term or provision
     in any other situation or in any other jurisdiction. If the final judgment
     of a court of competent jurisdiction declares that any term or provision
     hereof is invalid or unenforceable, the parties agree that the court making
     the determination of invalidity or unenforceability shall have the power to
     reduce the scope, duration, or area of the term or provision, to delete
     specific words or phrases, or to replace any invalid or unenforceable term
     or provision with a term or provision that is valid and enforceable and
     that comes closest to expressing the intention of the invalid or
     unenforceable term or provision, and this Agreement shall be enforceable as
     so modified after the expiration of the time within which the judgment may
     be appealed.

          (f) Waivers. No waiver by any party hereto of any condition or of any
     breach of any provision of this Agreement will be effective unless in
     writing. No waiver by any party of any such condition or breach, in any one
     instance, will be deemed to be a further or continuing waiver of any such
     condition or breach or a waiver of any other condition or breach of any
     other provision contained herein.

     13. Expenses.

          (a) Escrow Agent. All fees and expenses of the Escrow Agent incurred
     in the ordinary course of performing its responsibilities hereunder will be
     borne by Universal upon receipt of a written invoice by Escrow Agent. Any
     extraordinary fees and expenses, including, without limitation, any fees or
     expenses incurred by the Escrow Agent in connection with a dispute over the
     distribution of Escrow Shares or the validity of a Notice of Claim or as
     described in Sections 6(b) or 7, will be paid 50% by Universal and 50% by
     the Stockholders, other than fees and expenses related to withholding or
     other taxes, assessments or governmental charges that apply to the
     Stockholders, which will be paid 100% by the Stockholders directly. The
     Stockholders' 50% liability for the extraordinary fees and expenses of the
     Escrow Agent (which will be pro rata for each Stockholder based on the
     proportion of the total Escrow Shares attributable to such Stockholder)
     will be paid by Universal and recovered as a claim hereunder out of the
     Escrow Shares or, if there are no Escrow Shares remaining, recovered from
     the Stockholders directly.

          (b) Representative. The Representative will not be entitled to receive
     any compensation from Universal or the Stockholders in connection with this
     Agreement.

                                       16
<PAGE>   17

     Any out-of-pocket costs and expenses reasonably incurred by the
     Representative in connection with actions taken pursuant to the terms of
     this Agreement will be paid by the Stockholders to the Representative in
     proportion to their percentage interests in the Escrow Shares as set forth
     on Exhibit A.

     14. Successor Escrow Agent. In the event the Escrow Agent becomes
unavailable or unwilling to continue in its capacity herewith, the Escrow Agent
may resign and be discharged from its duties or obligations hereunder by giving
written notice of resignation to the parties to this Agreement, specifying a
date not less than 21 days following such notice date of when such resignation
will take effect. Universal will designate a successor Escrow Agent prior to the
expiration of such 21-day period by giving written notice to the Escrow Agent
and the Representative. Universal may appoint a successor Escrow Agent without
the consent of the Stockholders or the Representative so long as such successor
is a bank with assets of at least $50 million, and may appoint any other
successor Escrow Agent with the consent of the Representative, which consent
will not be unreasonably withheld. The Escrow Agent will promptly transfer the
Escrow Shares to such designated successor.

     15. Limitation of Responsibility. The Escrow Agent's duties are limited to
those set forth in this Agreement, and Escrow Agent, acting as such under this
Agreement, and charged with knowledge of or any duties or responsibilities under
any other document or agreement, including, without limitation, the Merger
Agreement.

     16. Amendment. This Agreement may be amended by the written agreement of
Universal, the Escrow Agent and the Representative; provided, that if the Escrow
Agent does not agree to an amendment agreed upon by Universal and the
Representative, the Escrow Agent will resign and Universal will appoint a
successor Escrow Agent in accordance with Section 14 above.

                                       17
<PAGE>   18

          IN WITNESS WHEREOF, the parties have duly executed this Agreement as
of the day and first above written.

                                              UNIVERSAL COMPRESSION HOLDINGS,
                                                INC.

                                              By: /s/ ERNIE L. DANNER
                                                 -------------------------------
                                                 Name: Ernie L. Danner
                                                 Title: Executive Vice President

                                              REUBEN JAMES HELTON TRUST DATED
                                              JANUARY 24, 2000

                                              By: /s/ GARLIN R. RHYMES
                                                 -------------------------------
                                              Name: Garlin R. Rhymes, Trustee

                                              /s/ MICHAEL PAHL
                                              ----------------------------------
                                              Michael Pahl

                                              REPRESENTATIVE:

                                              /s/ GARLIN R. RHYMES
                                              ----------------------------------
                                              Name: Garlin R. Rhymes

                                              STATE STREET BANK AND TRUST
                                                COMPANY, AS ESCROW AGENT

                                              By: /s/ CHI C. MA
                                                 -------------------------------
                                                  Name: Chi C. Ma
                                                  Title: Vice President

                                       18
<PAGE>   19

                                                                       EXHIBIT A

<TABLE>
<CAPTION>
       STOCKHOLDER NAME                       NUMBER OF ESCROW            PRO RATA
         AND ADDRESS                    SHARES INITIALLY DEPOSITED        INTEREST
       ----------------                 --------------------------        --------
<S>                                     <C>                               <C>
The Reuben James Helton                            122,299                  90%
   Trust Dated January 24, 2000
c/o Garlin R. Rhymes, Trustee
24106 Bay Hill Blvd.
Katy, Texas 77494

Michael L. Pahl                                    13,588                   10%
5319 N. Liberty Drive
Traverse City, Michigan 49684
</TABLE>

<PAGE>   20

                                                                       EXHIBIT B

                          ADDITIONAL PARTY COUNTERPART

          The undersigned, after having received and reviewed to its, his or her
satisfaction a copy of the Escrow Agreement, dated as of September 15, 2000 (the
"Escrow Agreement"), by and among Universal Compression Holdings, Inc. (the
"Company"), the Reuben James Helton Trust Dated January 24, 2000 as amended and
in effect, a trust formed pursuant to the laws of the State of Michigan (the
"Trust"), Garlin R. Rhymes, as trustee of the Trust ("Trustee"), Michael Pahl
("Pahl") (collectively, the Trust, Trustee and Pahl are referred to as the
"Stockholders"), Garlin R. Rhymes, as representative of the former stockholders
of Gas Compression Services, Inc., a Michigan corporation, and State Street Bank
and Trust Company, a Massachusetts trust company, as the Escrow Agent, does
hereby agree to become party to the Escrow Agreement, thereby accepting all of
the rights, benefits and obligations of a Stockholder thereunder. The Company
may attach this page as a counterpart to the Escrow Agreement and the
undersigned agrees that such attachment shall be deemed conclusive evidence of
its, his or her acknowledgment and acceptance of the terms thereof.

          Capitalized terms used herein and not otherwise defined herein shall
have the meaning given such terms in the Escrow Agreement.

Dated:

                                                [NAME]
                                                [ADDRESS FOR NOTICES]

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

Acknowledged and Accepted By:

UNIVERSAL COMPRESSION HOLDINGS, INC.

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

<PAGE>   21

                                                                       EXHIBIT C

                                  FEE SCHEDULE

                                  STATE STREET
                                SCHEDULE OF FEES
                                       FOR
                                 ESCROW SERVICES

                          UNIVERSAL COMPRESSION, INC.,
                         GAS COMPRESSION SERVICES, INC.,
                REUBEN JAMES HELTON TRUST DATED JANUARY 24, 2000
                                       AND
                                 MICHAEL L. PAHL

<TABLE>
<S>                                                         <C>
ACCEPTANCE FEE:                                             Waived

ADMINISTRATION FEE:                                         $3,500.00 per year or part thereof
                                                            PLUS $35.00 PER SHAREHOLDER

INVESTMENT FEE:  (if applicable)                            $65.00 per buy/sell
direct investments in treasuries, C/D's
CP, Repo's, etc.

SWEEP FEE:  (if applicable)                                 40 basis points per annum of the
SSgA or selected other Money Market                         average daily net assets
Funds

State Street's Insured Money Market                         No Charge
Account

WIRE TRANSFER FEE (outgoing):                               $20.00

OUT-OF-POCKET EXPENSES                                      At cost

LEGAL FEES (Peabody & Arnold):                              At Cost
</TABLE>

August 2, 2000

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