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                                                                    EXHIBIT 10.8

                            INDEMNIFICATION AGREEMENT

                  This INDEMNIFICATION AGREEMENT made and entered into effective
as of February 9, 2001("Agreement"), by and between UNIVERSAL COMPRESSION
HOLDINGS, INC., a Delaware corporation ("Company"), and Bernard J. Duroc-Danner
("Indemnitee").

                                  WITNESSETH:

                  WHEREAS, highly skilled and competent persons are becoming
more reluctant to serve public corporations as directors or officers unless they
are provided with adequate protection through insurance and indemnification
against inordinate risks of claims and actions against them arising out of their
service to and activities on behalf of the corporation; and

                  WHEREAS, uncertainties relating to indemnification have
increased the difficulty of attracting and retaining such persons; and

                  WHEREAS, the Board of Directors has determined that the
inability to attract and retain such persons is detrimental to the best
interests of the Company's stockholders and that the Company should act to
assure such persons that there will be increased certainty of such protection in
the future; and

                  WHEREAS, it is reasonable, prudent and necessary for the
Company contractually to obligate itself to indemnify Indemnitee to the fullest
extent permitted by applicable law so that Indemnitee will serve or continue to
serve the Company free from undue concern that Indemnitee will not be so
indemnified; and

                  WHEREAS, Indemnitee is willing to serve, continue to serve and
to take on additional service for or on behalf of the Company on the condition
that Indemnitee be so indemnified;

                  NOW, THEREFORE, in consideration of the premises and the
covenants contained herein, the Company and Indemnitee do hereby covenant and
agree as follows:

                  Section 1. Services by Indemnitee. Indemnitee agrees to
continue to serve as a director and/or officer of Universal Compression, Inc.
("Universal"), a wholly-owned subsidiary of the Company. This Agreement does not
create or otherwise establish any right on the part of Indemnitee to be and
continue to be nominated to be a director and/or officer of Universal or the
Company and does not create an employment contract between Universal or the
Company and Indemnitee.

                  Section 2. Indemnification. The Company shall indemnify
Indemnitee to the fullest extent permitted by applicable law in effect on the
date hereof or as such laws may from time to time be amended. Without
diminishing the scope of the indemnification provided by this Section 2, the
rights of indemnification of Indemnitee provided hereunder shall include but
shall not be limited to those rights, except to the extent expressly prohibited
by applicable law.

                  Section 3. Action or Proceeding Other Than an Action by or in
the Right of the Company. Indemnitee shall be entitled to the indemnification
rights provided in this Section 3 if Indemnitee is a party or is threatened to
be made a party to any threatened, pending or

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completed action, suit or proceeding, whether civil, criminal, administrative or
investigative in nature, other than an action by or in the right of the Company,
by reason of the fact that Indemnitee is or was a director, officer, agent, or
fiduciary of the Company or is or was serving at the request of the Company as a
director, officer, agent, or fiduciary of Universal or any other entity or by
reason of anything done or not done by him or her in any such capacity. Pursuant
to this Section 3, Indemnitee shall be indemnified against expenses (including
attorneys' fees and disbursements), judgments, penalties, fines and amounts paid
in settlement actually and reasonably incurred by Indemnitee in connection with
such action, suit or proceeding (including, but not limited to, the
investigation, defense or appeal thereof), if Indemnitee acted in good faith and
in a manner Indemnitee reasonably believed to be in or not opposed to the best
interests of Universal or the Company, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe his or her conduct was
unlawful.

                  Section 4. Actions by or in the Right of the Company.
Indemnitee shall be entitled to the indemnification rights provided in this
Section 4 if Indemnitee is a person who was or is made a party or is threatened
to be made a party to any threatened, pending or completed action or suit
brought by or in the right of the Company to procure a judgment in its favor by
reason of the fact that Indemnitee is or was a director, officer, agent, or
fiduciary of the Company or is or was serving at the request of the Company as a
director, officer, agent, or fiduciary of Universal or any other entity by
reason of anything done or not done by Indemnitee in any such capacity. Pursuant
to this Section 4 Indemnitee shall be indemnified against expenses (including
attorneys' fees and disbursements) actually and reasonably incurred by
Indemnitee in connection with such action or suit (including, but not limited
to, the investigation, defense, settlement or appeal thereof) if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or
not opposed to the best interests of Universal or the Company; provided,
however, that no such indemnification shall be made in respect of any claim,
issue or matter as to which applicable law expressly prohibits such
indemnification by reason of an adjudication of liability of Indemnitee to the
Company, unless, and only to the extent that, the Court of Chancery of the State
of Delaware or the court in which such action or suit was brought shall
determine upon application that, despite such adjudication of liability but in
view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnification for such expenses as such court shall deem proper.

                  Section 5. Indemnification for Expenses of Successful Party.
Notwithstanding the other provisions of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise, including, without
limitation, the dismissal of an action without prejudice, in defense of any
action, suit or proceeding referred to in Section 3 or 4 hereof, or in defense
of any claim, issue or matter therein, Indemnitee shall be indemnified against
all expenses (including attorneys' fees and disbursements) actually and
reasonably incurred by Indemnitee or on Indemnitee's behalf in connection
therewith.

                  Section 6. Indemnification for Expenses of a Witness. To the
extent that Indemnitee is, by reason of Indemnitee's Corporate Status (as
hereinafter defined), a witness in any proceeding, Indemnitee shall be
indemnified by the Company against all expenses actually and reasonably incurred
by Indemnitee or on Indemnitee's behalf in connection therewith.

                  Section 7. Partial Indemnification. If Indemnitee is only
partially successful in the defense, investigation, settlement or appeal of any
action, suit, investigation or proceeding described in Section 3 or 4 hereof,
and as a result is not entitled under Section 5 hereof to

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indemnification by the Company for the total amount of the expenses (including
attorneys' fees and disbursements), judgments, penalties, fines, and amounts
paid in settlement actually and reasonably incurred by Indemnitee, the Company
shall nevertheless indemnify Indemnitee, as a matter of right pursuant to
Section 5 hereof, to the extent Indemnitee has been partially successful.

                  Section 8. Determination of Entitlement to Indemnification.
Upon written request by Indemnitee for indemnification pursuant to Section 3 or
4 hereof, the entitlement of the Indemnitee to indemnification pursuant to the
terms of this Agreement shall be determined by the following person or persons
who shall be empowered to make such determination: (a) the Board of Directors of
the Company by a majority vote of the Disinterested Directors (as hereinafter
defined) even if less than a quorum; or (b) if such vote is not obtainable or,
even if obtainable, if such Disinterested Directors so direct by majority vote,
by Independent Counsel (as hereinafter defined) in a written opinion to the
Board of Directors, a copy of which shall be delivered to Indemnitee; or (c) by
the stockholders. Such Independent Counsel shall be selected by the Board of
Directors and approved by Indemnitee. Upon failure of the Board to so select
such Independent Counsel or upon failure of Indemnitee to so approve, such
Independent Counsel shall be selected by the Chancellor of the State of Delaware
or such other person as such Chancellor shall designate to make such selection.
Such determination of entitlement to indemnification shall be made not later
than 60 days after receipt by the Company of a written request for
indemnification. Such request shall include documentation or information which
is necessary for such determination and which is reasonably available to
Indemnitee. Any expenses (including attorneys' fees) incurred by Indemnitee in
connection with Indemnitee's request for indemnification hereunder shall be
borne by the Company. The Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom irrespective of the outcome of the determination
of Indemnitee's entitlement to indemnification. If the person making such
determination shall determine that Indemnitee is entitled to indemnification as
to part (but not all) of the application for indemnification, such person shall
reasonably prorate such partial indemnification among such claims, issues or
matters.

                  Section 9. Presumptions and Effect of Certain Proceedings. The
Secretary of the Company shall, promptly upon receipt of Indemnitee's request
for indemnification, advise in writing the Board of Directors or such other
person or persons empowered to make the determination as provided in Section 8
that Indemnitee has made such request for indemnification. Upon making such
request for indemnification, Indemnitee shall be presumed to be entitled to
indemnification hereunder and the Company shall have the burden of proof in the
making of any determination contrary to such presumption. If the person or
persons so empowered to make such determination shall have failed to make the
requested indemnification within 60 days after receipt by the Company of such
request, the requisite determination of entitlement to indemnification shall be
deemed to have been made and Indemnitee shall be absolutely entitled to such
indemnification, absent actual and material fraud in the request for
indemnification. The termination of any action, suit, investigation or
proceeding described in Section 3 or 4 hereof by judgment, order, settlement or
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself: (a) create a presumption that Indemnitee did not act in good faith and
in a manner which Indemnitee reasonably believed to be in or not opposed to the
best interests of the Company, and, with respect to any criminal action or
proceeding, that Indemnitee had reasonable cause to believe that his or her
conduct was unlawful; or (b) otherwise adversely affect the rights of Indemnitee
to indemnification except as may be provided herein.

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                  Section 10. Advancement of Expenses. All reasonable expenses
incurred by Indemnitee (including attorneys' fees, retainers and advances of
disbursements required of Indemnitee) shall be paid by the Company in advance of
the final disposition of such action, suit or proceeding, whether civil,
criminal, administrative or investigative in nature, at the request of
Indemnitee within twenty days after the receipt by the Company of a statement or
statements from Indemnitee requesting such advance or advances from time to
time. Indemnitee's entitlement to such expenses shall include those incurred in
connection with any proceeding by Indemnitee seeking an adjudication or award in
arbitration pursuant to this Agreement. Such statement or statements shall
reasonably evidence the expenses incurred by Indemnitee in connection therewith
and shall include or be accompanied by an undertaking by or on behalf of
Indemnitee to repay such amount if it is ultimately determined that Indemnitee
is not entitled to be indemnified against such expenses and costs by the Company
as provided by this Agreement or otherwise. The Company shall have the burden of
proof in any determination under this Section 10.

                  Section 11. Remedies of Indemnitee in Cases of Determination
Not to Indemnify or to Advance Expenses. In the event that a determination is
made that Indemnitee is not entitled to indemnification hereunder or if payment
has not been timely made following a determination of entitlement to
indemnification pursuant to Sections 8 and 9, or if expenses are not advanced
pursuant to Section 10, Indemnitee shall be entitled to a final adjudication in
the Delaware Court of Chancery, first, and then in any other court of competent
jurisdiction of Indemnitee's entitlement to such indemnification or advance.
Alternatively, Indemnitee, at Indemnitee's option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the rules of the
American Arbitration Association, such award to be made within sixty days
following the filing of the demand for arbitration. The Company shall not oppose
Indemnitee's right to seek any such adjudication or award in arbitration or any
other claim. Such judicial proceeding or arbitration shall be made de novo and
Indemnitee shall not be prejudiced by reason of a determination (if so made)
that Indemnitee is not entitled to indemnification. If a determination is made
or deemed to have been made pursuant to the terms of Section 8 or 9 hereof that
Indemnitee is entitled to indemnification, the Company shall be bound by such
determination and is precluded from asserting that such determination has not
been made or that the procedure by which such determination was made is not
valid, binding and enforceable. The Company further agrees to stipulate in any
such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement and is precluded from making any assertion to the
contrary. If the court or arbitrator shall determine that Indemnitee is entitled
to any indemnification hereunder, the Company shall pay all reasonable expenses
(including attorneys' fees and disbursements) actually incurred by Indemnitee in
connection with such adjudication or award in arbitration (including, but not
limited to, any appellate proceedings).

                  Section 12. Other Rights to Indemnification. The
indemnification and advancement of expenses (including attorneys' fees) provided
by this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may now or in the future be entitled under any provision of the
by-laws, agreement, provision of the Certificate of Incorporation, as amended,
vote of stockholders or Disinterested Directors, provision of law, or otherwise;
provided, however, that this Agreement supersedes any other Agreement that has
been entered into with the Indemnitee which has as its principal purpose the
indemnification of Indemnitee.

                  Section 13. Attorneys' Fees and Other Expenses To Enforce
Agreement. In the event that Indemnitee is subject to or intervenes in any
proceeding in which the validity or

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enforceability of this Agreement is at issue or seeks an adjudication or award
in arbitration to enforce Indemnitee's rights under, or to recover damages for
breach of, this Agreement, Indemnitee, if Indemnitee prevails in whole or in
part in such action, shall be entitled to recover from the Company and shall be
indemnified by the Company against, any actual expenses for attorneys' fees and
disbursements reasonably incurred by Indemnitee, provided that in bringing the
advancement action, Indemnitee acted in good faith.

                  Section 14. Duration of Agreement. This Agreement shall apply
with respect to Indemnitee's occupation of any of the position(s) described in
Sections 3 and 4 of this Agreement prior to the date of this Agreement and with
respect to all periods of such service after the date of this Agreement, even
though the Indemnitee may have ceased to occupy such positions(s). This
Agreement shall be binding upon the Company and its successors and assigns
(including any transferee of all or substantially all of its assets and any
successor by merger of operation of law) and shall inure to the benefit
Indemnitee and Indemnitee's spouse, assigns, heirs, devises, executors,
administrators or other legal representatives. This Agreement supersedes any
prior indemnification arrangement between the Company (or its predecessor) and
Indemnitee.

                  Section 15. Severability. If any provision of provisions of
this Agreement shall be held to be invalid, illegal or unenforceable for any
reason whatsoever: (a) the validity, legality and enforceability of the
remaining provisions of this Agreement (including without limitation, all
portions of any paragraphs of this Agreement containing any such provision held
to be invalid, illegal or unenforceable, that are not themselves invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby;
and (b) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, all portions of any section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that
are not themselves invalid, illegal or unenforceable) shall be construed so as
to give effect to the intent manifested by the provision held invalid, illegal
or unenforceable.

                  Section 16. Identical Counterparts. This Agreement may be
executed in one or more counterparts, each of which shall for all purposes be
deemed to be an original but all of which together shall constitute one and the
same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this
Agreement.

                  Section 17. Headings. The headings of the sections of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

                  Section 18. Definitions. For purposes of this Agreement:

                              (a) "Disinterested Director" shall mean a director
of the Company who is not or was not a party to the action, suit, investigation
or proceeding in respect of which indemnification is being sought by Indemnitee.

                              (b) "Independent Counsel" shall mean a law firm or
a member of a law firm that neither is presently nor in the past five years has
been retained to represent: (i) the Company or Indemnitee in any matter material
to either such party, or (ii) any other party to the action, suit, investigation
or proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term "Independent Counsel" shall not include
any person

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who, under the applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Company or
Indemnitee in an action to determine Indemnitee's right to indemnification under
this Agreement.

                              (c) "Corporate Status" shall mean the status of a
person who is or was a director, officer, employee, agent or fiduciary of the
Company or any majority-owned subsidiary or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise
that such person is or was serving at the request of the Company.

                  Section 19. Modification and Waiver. No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar) nor shall such waiver constitute a
continuing waiver.

                  Section 20. Notice by Indemnitee. (a) Indemnitee agrees
promptly to notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document
relating to any matter which may be subject to indemnification covered
hereunder, either civil, criminal, administrative, investigative or otherwise,
provided, however, that the failure to so notify the Company will not relieve
the Company from any liability it may have to Indemnitee except to the extent
that such failure materially prejudices the Company's ability to defend such
claim. With respect to any such action, suit, proceeding, inquiry or
investigation as to which Indemnitee notifies the Company of the commencement
thereof:

                              (i) The Company will be entitled to participate
therein at its own expense; and

                              (ii) Except as otherwise provided below, to the
extent that it may wish, the Company jointly with any other indemnifying party
similarly notified will be entitled to assume the defense thereof, with counsel
reasonably satisfactory to Indemnitee. After notice from the Company to
Indemnitee of its election so to assume the defense thereof, the Company will
not be liable to Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by Indemnitee in connection with the defense thereof other
than reasonable costs of investigation or as otherwise provided below.
Indemnitee shall have the right to employ Indemnitee's own counsel in such
action, suit, proceeding, inquiry or investigation, but the fees and expenses of
such counsel incurred after notice from the Company of its assumption of the
defense thereof shall be at the expense of Indemnitee and not subject to
indemnification hereunder unless (x) the employment of counsel by Indemnitee has
been authorized by the Company; (y) in the reasonable opinion of counsel to
Indemnitee there is or may be a conflict of interest between the Company and
Indemnitee in the conduct of the defense of such action; or (z) the Company
shall not in fact have employed counsel to assume the defense of such action, in
each of which cases the fees and expenses of counsel shall be at the expense of
the Company.

                              (b) Neither the Company nor the Indemnitee shall
settle any claim without the prior written consent of the other (which shall not
be unreasonably withheld).

                  Section 21. Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if (a) delivered by hand and receipted for by the party to whom said
notice or other communication shall have been

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directed or if (b) mailed by certified or registered mail with postage prepaid,
on the third business day after the date on which it is so mailed:

                              (i)  If to Indemnitee, to the address set forth
                                   below his or her signature.

                              (ii) If to the Company to:

                                   Universal Compression Holdings, Inc.
                                   4440 Brittmoore Road
                                   Houston, Texas  77041-8004
                                   Attn: Chief Executive Officer

or to such other address as may have been furnished to Indemnitee by the Company
or to the Company by Indemnitee, as the case may be.

                  Section 22. Governing Law. The parties agree that this
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware.

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

                                    UNIVERSAL COMPRESSION HOLDINGS, INC.

                                    By: /s/ STEPHEN A. SNIDER
                                       -----------------------------------------
                                    Name:  Stephen A. Snider
                                    Title: President and Chief Executive Officer

                                    Name:   /s/ BERNARD J. DUROC-DANNER
                                            ------------------------------------
                                    Address: 515 Post Oak Blvd.
                                            ------------------------------------
                                             Houston, Texas 77027
                                            ------------------------------------

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

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                                                                    EXHIBIT 10.9
                                    AGREEMENT

         AGREEMENT ("Agreement") dated as of ____________ between Universal
Compression, Inc., a Texas corporation (the "Company"), Universal Compression
Holdings, Inc., a Delaware corporation ("Holdings") and __________________ (the
"Executive").

         WHEREAS, Universal is a direct wholly-owned subsidiary of Holdings;

         WHEREAS, the parties wish to enter into agreement to set out the
Company's, Holdings' and the Executive's severance obligations.

         Accordingly, the parties agree as follows:

         1. Severance.

         (a) If, during the one year period next following a "Change in Control"
(as herein defined) the Executive's employment with the Company is terminated by
the Company for reasons other than death, disability or cause ("Termination Upon
Change in Control"), in lieu of additional salary payments to the Executive for
periods subsequent to the date of such termination, the Company shall pay a lump
sum severance payment (together with the payments provided in paragraph (b)
below, the "Severance Payments") to the Executive at the time of termination.
Such payment shall be an amount equal to the sum of (A) the Executive's annual
Base Salary as in effect as of the date of termination and (B) the Executive's
annual bonus target amount under the Officer Incentive Plan or similar bonus
program in effect at such termination.

          (b) For a period of twelve (12) months immediately following the date
of Executive's termination of employment pursuant to Section 1(a) above, the
Company shall at its expense arrange to provide the Executive with life,
disability, accident and group health insurance benefits substantially similar
to those which the Executive was receiving immediately prior to
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the notice of termination. Benefits otherwise receivable by the Executive
pursuant to this paragraph (b) shall be reduced to the extent comparable
benefits are actually received by the Executive during the period following the
Executive's termination, and any such benefits actually received by the
Executive shall be reported to the Company.

         (c) Nothing contained in this Section 1 shall prevent the Executive
from receiving any and all benefits payable under any severance benefit plan or
severance program maintained by the Company to which the Executive is entitled.

2.       Definition of Change in Control.

         For purposes of this Agreement a "Change in Control" shall be deemed to
have occurred upon the first to occur of the following events:

         (a) any "person," as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") (other than
(i) the Company, or (ii) any corporation owned, directly or indirectly, by the
stockholders of the Company or Holdings in substantially the same proportions as
their ownership of stock of the Company or Holdings, or (iii) Castle Harlan,
Inc. or its affiliates), is or becomes the "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company or Holdings representing more than 50% of the combined voting power of
the Company's or Holdings' then outstanding securities; or

         (b) during any period of two consecutive years (not including any
period prior to the execution of this Agreement), individuals who at the
beginning of such period constitute the Company's or Holdings' Board of
Directors, and any new director (other than a director designated by a person
who has entered into an agreement with the Company or Holdings to effect the
transaction described in clause (a) of this Section) whose election by the
Company's or
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Holdings' Board of Directors or nomination for election by the Company's or
Holdings' stockholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof.

3.       Restrictions and Obligations of the Executive.

         (a) Consideration for Restrictions and Covenants. The parties hereto
acknowledge and agree that the principal consideration for the agreement to make
the severance payments provided in this Agreement by the Company to Executive is
the Executive's compliance with the undertakings set forth in this Section 3.
Specifically, the Executive agrees to comply with the provisions of this Section
3 irrespective of whether the Executive is entitled to receive any such
payments.

         (b) Confidentiality. The confidential and proprietary information and,
in any material respect, trade secrets of the Company are among its most
valuable assets, including but not limited to, its customer and vendor lists,
database, engineering, computer programs, frameworks, models, its marketing
programs, its sales, financial, marketing, training and technical information,
and any other information, whether communicated orally, electronically, in
writing or in other tangible forms concerning how the Company creates, develops,
acquires or maintains its products and marketing plans, targets its potential
customers and operates its retail and other businesses. The Company invested,
and continues to invest, considerable amounts of time and money in its process,
technology, know-how, obtaining and developing the goodwill of its customers,
its other external relationships, its data systems and data bases, and all the
information described above (hereinafter collectively referred to as
"Confidential Information"),
<PAGE>   4

and any misappropriation or unauthorized disclosure of Confidential Information
in any form would irreparably harm the Company. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all Confidential Information
relating to the Company and its business, which shall have been obtained by the
Executive during the Executive's employment by the Company and which shall not
be or become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement). After
termination of the Executive's employment with the Company, the Executive shall
not, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate, divulge or use any such
information, knowledge or data to anyone other than the Company and those
designated by it.

         (c) Non-Solicitation or Hire. During the term of Executive's employment
with the Company, Holdings or any subsidiary thereof and for a two-year period
following the termination of the Executive's employment for any reason, the
Executive shall not, directly or indirectly (i) employ or seek to employ any
person who is at the date of termination, or was at any time within the
six-month period preceding the date of termination, an officer, general manager
or director or equivalent or more senior level employee of the Company or any of
its subsidiaries or otherwise solicit, encourage, cause or induce any such
employee of the Company or any of its subsidiaries to terminate such employee's
employment with the Company or such subsidiary for the employment of another
company (including for this purpose the contracting with any person who was an
independent contractor (excluding consultant) of the Company during such period)
or (ii) take any action that would interfere with the relationship of the
Company or its subsidiaries with their suppliers or customers without, in either
case, the prior
<PAGE>   5

written consent of the Company's Board of Directors, or engage in any other
action or business that would have a material adverse effect on the Company.

         (d) Non-Competition. (i) During the term of Executive's employment with
the Company, Holdings or any subsidiary thereof and for a two-year period (the
"Restriction Period") following the termination of the Executive's employment
for any reason, the Executive shall not, directly or indirectly:

             (x) engage in any managerial, administrative, advisory, consulting,
operational or sales activities in a Restricted Business anywhere in the
Restricted Area, including, without limitation, as a director or partner of such
Restricted Business, and/or

             (y) organize, establish, operate, own, manage, control or have a
direct or indirect investment or ownership interest in a Restricted Business or
in any corporation, partnership (limited or general), limited liability company
enterprise or other business entity that engages in a Restricted Business
anywhere in the Restricted Area; and

         (ii) Nothing contained in this Section 3 shall prohibit or otherwise
restrict the Executive from acquiring or owning, directly or indirectly, for
passive investment purposes not intended to circumvent this Agreement,
securities of any entity engaged, directly or indirectly, in a Restricted
Business if either (i) such entity is a public entity and the Executive (A) is
not a controlling Person of, or a member of a group that controls, such entity
and (B) owns, directly or indirectly, no more than 3% of any class of equity
securities of such entity or (ii) such entity is not a public entity and the
Executive (A) is not a controlling Person of, or a member of a group that
controls, such entity and (B) does not own, directly or indirectly, more than 1%
of any class of equity securities of such entity.
<PAGE>   6

         (e)      Definitions.  For purposes of this Section 3:

                  (i) "Restricted Business" means the business of designing,
manufacturing, servicing, operating, marketing, assembling, renting or leasing
of air or gas compressors or devices using comparable technologies or other
business in which Holdings or its subsidiaries may be engaged during the term of
Executive's employment with the Company. To the extent that any entity is
primarily engaged in a business other than a Restricted Business, the term
"Restricted Business" shall mean the operations, division, segment or subsidiary
of such entity that is engaged in any Restricted Business.

                  (ii) "Restricted Area" means any state in the United States,
or any country in which Holdings or its subsidiaries engages in any Restricted
Business at any time during the term of Executive's employment with the Company.

4. Employment at Will. This Agreement does not restrict the Company's or the
   Executive's right to terminate the employment relationship at any time, for
   any reason, with or without cause, and does not in any way create employment
   for a definite or specific term.

5.       Other Provisions.

         5.1. Notices. Any notice or other communication required or which may
be given hereunder shall be in writing and shall be delivered personally,
telegraphed, telexed, sent by facsimile transmission or sent by certified,
registered or express mail, postage prepaid, and shall be deemed given when so
delivered personally, telegraphed, telexed, or sent by facsimile transmission
or, if mailed, four days after the date of mailing, as follows:

         (a)      If the Company or Holdings, to:
                      4440 Brittmoore
                      Houston, Texas  77041
                      Attention:  General Counsel

<PAGE>   7
                  With copies to:
                      Castle Harlan, Inc.
                      150 E. 58th Street
                      New York, NY  10155
                      Attention:  William B. Pruellage

                      Schulte Roth & Zabel LLP
                      900 Third Avenue
                      New York, NY  10022
                      Attention:  Andre Weiss, Esq.

             (b) If the Executive, to his home address set forth in the records
of the Company.

         5.2 Entire Agreement. This Agreement contains the entire agreement
between the parties with respect to the subject matter hereof and supersedes all
prior agreements, written or oral, with respect thereto.

         5.3 Waiver and Amendments. This Agreement may be amended, modified,
superseded, canceled, renewed or extended, and the terms and conditions hereof
may be waived, only by a written instrument signed by the parties or, in the
case of a waiver, by the party waiving compliance. No delay on the part of any
party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof, nor shall any waiver on the part of any right, power or
privilege hereunder, nor any single or partial exercise of any right, power or
privilege hereunder, preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder.

         5.4 Governing Law. This Agreement shall be governed and construed in
accordance with the laws of Delaware.

         5.5 Assignability. This Agreement, and the Executive's rights and
obligations hereunder, may not be assigned by the Executive. The Company and
Holdings may each assign this Agreement and its rights, together with its
obligations, to any other entity which will substantially carry on the business
of the Company.
<PAGE>   8

         5.6 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument, and it shall not be necessary in making
proof of this Agreement to produce or account for more than one such
counterpart.

         5.7 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning of terms
contained herein.

         5.8 Remedies; Specific Performance. The parties hereto hereby
acknowledge that the provisions of Section 3 are reasonable and necessary for
the protection of the Company and Holdings. In addition, the Executive further
acknowledges that the Company and Holdings will be irrevocably damaged if such
covenants are not specifically enforced. Accordingly, the Executive agrees that,
in addition to any other relief to which the Company and Holdings may be
entitled, the Company and Holdings will be entitled to seek and obtain
injunctive relief (without the requirement of any bond) from a court of
competent jurisdiction for the purposes of restraining the Executive from any
actual or threatened breach of such covenants. In addition, without limiting the
Company's and Holdings' remedies for any breach of any restriction on the
Executive set forth in Section 3, except as required by law, the Executive shall
not be entitled to the payments and insurance benefits set forth in Section 1
hereof if the Executive breaches any of the covenants applicable to the
Executive contained in Section 3, the Executive will immediately return to the
Company any payments previously received under Section 1 upon such a breach.

         5.9 Severability. If any term, provision, covenant or restriction of
this Agreement, or any part thereof, is held by a court of competent
jurisdiction of any foreign, federal, state, county or local government or any
other governmental, regulatory or administrative agency or authority to be
invalid, void, unenforceable or against public policy for any reason, the
remainder of the
<PAGE>   9

terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected or impaired or
invalidated. The Executive acknowledges that the restrictive covenants contained
in Section 3 are a condition of this Agreement and are reasonable and valid in
geographical and temporal scope and in all other respects.

         5.10 Judicial Modification. If any court or arbitrator determines that
any of the covenants in Section 3, or any part of any of them, is invalid or
unenforceable, the remainder of such covenants and parts thereof shall not
thereby be affected and shall be given full effect, without regard to the
invalid portion. If any court or arbitrator determines that any of such
covenants, or any part thereof, is invalid or unenforceable because of the
geographic or temporal scope of such provision, such court or arbitrator shall
reduce such scope to the minimum extent necessary to make such covenants valid
and enforceable.

6.       Arbitration.

         Any controversy or claim arising out of or in connection with this
Agreement (other than pursuant to Section 3) shall be settled by arbitration in
accordance with the rules then obtaining of the American Arbitration
Association. Such controversies shall be submitted to three arbitrators, one
arbitrator being selected by the Company, one arbitrator being selected by the
Executive, and the third being selected by the two so selected by the Company
and the Executive or, if they cannot agree upon a third, by the American
Arbitration Association. In the event that either the Company or the Executive,
within one month after any notification of any demand for arbitration hereunder,
shall not have selected its arbitrator and given notice thereof by registered or
certified mail to the other, such arbitrator shall be selected by the American
Arbitration Association. Confirmation of any award in any such arbitration may
be held in any court having jurisdiction of the person against whom such award
is rendered. If the results of such arbitration
<PAGE>   10

are more favorable to the position taken by the Executive than that taken by the
Company, in the opinion of the arbitrators, then all costs and expenses incurred
by the Executive in connection with such arbitration shall be paid by the
Company. In the event that the arbitrators make a formal finding that the
Executive did not have a reasonable basis for instituting the proceeding,
contest or dispute giving rise to such arbitration, the Executive shall pay to
the Company its reasonable legal fees and expenses incurred in the defense of
the proceeding, contest or dispute giving rise to such arbitration.

                  IN WITNESS WHEREOF, the parties hereto, intending to be
legally bound hereby, have executed this Agreement as of the day and year first
above mentioned.

                                            EXECUTIVE

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

                                            UNIVERSAL COMPRESSION, INC.

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------
                                            Date:
                                                 -------------------------------

                                            UNIVERSAL COMPRESSION HOLDINGS, INC.

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------
                                            Date:
                                                 -------------------------------

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