Document:

<PAGE>   1
                                                                   EXHIBIT 10.24

                                    FORM OF
                             STOCK OPTION AGREEMENT

         THIS STOCK OPTION AGREEMENT, executed and effective this ___ day of
_____, ____, by and between UNIVERSAL COMPRESSION HOLDINGS, INC., a Delaware
corporation ("Holdings") and ______________ (the "Employee"), who is an
Employee of Universal Compression, Inc. ("Universal"), a wholly owned and
subsidiary of Holdings.

         WHEREAS, Holdings has agreed to grant to the Employee an option to
purchase Holdings Common Stock, $.01 par value per share (the "Common Stock"),
pursuant to the terms and conditions of this Agreement in consideration for
services to Universal; and

         NOW, THEREFORE, in consideration of the mutual covenants hereinafter
set forth and for other good and valuable consideration, the parties agree as
follows:

         1. GRANT OF OPTION. Holdings hereby grants to the Employee an option
(the "Option") to purchase ___ shares of Common Stock at $50 per share. This
Option shall become effective on the effective date of this Agreement as set
forth above ("Date of Grant") and unless sooner terminated under the provisions
hereof, shall expire at 12:00 midnight on _____ __, ____ (the "Expiration
Date"). This Option is granted under Holdings' Incentive Stock Option Plan (the
"Plan"), a copy of which is attached hereto as Exhibit "A" and is incorporated
herein by reference, and shall constitute, to the extent permissible, an
Incentive Stock Option under Section 422 of the Internal Revenue Code of 1986,
as amended, and otherwise shall be a Non-qualified Stock Option.

         2. OPTION TERMS AND CONDITIONS.

         (a) Exercise of Option. The Option shall become exercisable in
accordance with the following schedule:

<TABLE>
<CAPTION>
             Date                   Aggregate Amount Exercisable
             ----                   ----------------------------
<S>                                 <C>
         _____ _, ____                        33 1/3%

         _____ _, ____                        66 2/3%

         _____ _, ____                          100%
</TABLE>

         Notwithstanding the foregoing, Options shall become immediately
exercisable upon: (i) a public offering of Common Stock of the Corporation; (ii)
the acquisition by any Person other than an affiliate of Castle Harlan Partners
III, L.P. (as defined in the Plan), of fifty one percent (51%) or more of the
Common Stock of the Corporation; or (iii) a sale of all or substantially all of
the assets of the Corporation.

         (b) Termination of Employment.

                  (i) Termination due to Death, Disability or Retirement. In the
event the Employee's employment with Universal terminates on account of death,
Disability (as defined in the Plan) or retirement after age 65, the Option shall
terminate as of the date of Employee's termination of employment, except for the
portion of the Option which is exercisable as of the date of termination of
employment, which shall terminate unless exercised by Employee within three
months following the date of Employee's death, disability or retirement after
age 65.

                                       1
<PAGE>   2

                  (ii) Termination of Employment Without Cause. In the event the
Employee's employment with Universal shall terminate without cause, the Option
shall terminate as of the date of Employee's termination of employment except
for the portion of the Option which is exercisable as of the date of termination
of employment, which shall terminate unless exercised by Employee within 30 days
following the date of such termination of employment.

                  (iii) Termination of Employment for Cause. In the event the
Employee's employment with Universal shall terminate for Cause (as defined in
the Plan), the Option, whether or not exercisable as of the date of termination
of employment, shall terminate in its entirety on the date of termination.

         3. NON-TRANSFERABILITY. No Option granted hereby and no right arising
thereunder shall be transferable other than by will or by the laws of descent
and distribution. During the lifetime of the Employee, the Option shall be
exercisable only by the Employee. If the Option is exercisable at the date of
the Employee's death and is transferred by will or by the laws of descent and
distribution, the Option shall be exercisable in accordance with the terms of
such Option by the executor or administrator, as the case may be, of the
Employee's estate for a period of three (3) months after the date of the
Employee's death and shall then terminate.

         4. MODE OF EXERCISE. The Option shall be exercised by giving to
Holdings written notice stating (a) the number of shares with respect to which
the Option is being exercised, (b) the aggregate Exercise Price for such shares,
and (c) the method of payment. At the option of the Employee, such aggregate
Exercise Price may be paid: (i) in cash; (ii) with the consent of the Board of
Directors of Holdings (the "Board"), which consent may be given or withheld in
its sole discretion, by delivery of a promissory note to Holdings payable over a
three (3) year period and bearing interest at the prime rate; (iii) by delivery
of shares of Common Stock owned by the Employee having a Fair Market Value (as
determined by Section 5 hereof) equal in amount to the aggregate Exercise Price
of the Option being exercised; (iv) by any combination of (i), (ii) and (iii);
or (v) by cancellation of any portion of the Option, in which case the number of
shares of Common Stock to be received shall be computed using the following
formula:

                          X = Y x (A - $50)
                              -------------
                                   A

         Where:       X   =   the number of shares of Common Stock to be issued
                              pursuant to clause (v) above;

                      Y   =   the number of shares of Common Stock that
                              otherwise would have been issuable in
                              respect of that portion of the Option to be
                              exercised pursuant to clause (v) above if
                              such exercise had been pursuant to clause
                              (i), (ii), (iii) or (iv) above;

                      A   =   the Fair Market Value of one share of Common Stock
                              on the date of exercise;

provided, however, that clauses (iii) and (v) shall be inapplicable if no Fair
Market Value is applicable under clause (iv) of Section 5.

         5. FAIR MARKET VALUE OF COMMON STOCK. The "Fair Market Value" of the
Common Stock on any day shall be determined by the Holdings Board as follows:
(i) if the Common Stock is listed on a national securities exchange or quoted
through the NASDAQ National Market System, the Fair Market Value on any day
shall be the average of the high and low

                                       2
<PAGE>   3

reported Consolidated Trading sales prices, or if no such sale is made on such
day, the average of the closing bid and asked prices reported on the
Consolidated Trading listing for such day; (ii) if the Common Stock is quoted on
the NASDAQ inter-dealer quotation system, the Fair Market Value on any day shall
be the average of the representative bid and asked prices at the close of
business for such day; (iii) if the Common Stock is not listed on a national
stock exchange or quoted on NASDAQ, the Fair Market Value on any day shall be
the average of the high bid and low asked prices reported by the National
Quotation Bureau, Inc. for such day; or (iv) if none of clauses (i) - (iii) are
applicable, the Fair Market Value as may be determined by the Board or the
Administrator of the Plan, there being no obligation to make such determination.

         6. STOCK CERTIFICATES. All stock certificates representing shares of
Common Stock acquired pursuant to the exercise of an Option that are issued by
Holdings shall contain a legend substantially in the following form:

                "SHARES OF UNIVERSAL COMPRESSION HOLDINGS, INC. ("HOLDINGS")
       REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A STOCKHOLDERS AGREEMENT,
       DATED AS OF February 20, 1998, AS MAY BE AMENDED, WHICH CONTAINS
       PROVISIONS REGARDING THE RESTRICTIONS ON THE TRANSFER OF SUCH SHARES AND
       OTHER MATTERS. A COPY OF SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT
       THE PRINCIPAL OFFICE OF HOLDINGS. THE SHARES REPRESENTED BY THIS
       CERTIFICATE WERE NOT REGISTERED UNDER, AND ARE SUBJECT TO, THE SECURITIES
       ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD,
       TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
       UNDER THE SECURITIES ACT OR IN A TRANSACTION EXEMPT FROM REGISTRATION
       UNDER THE SECURITIES ACT."

         In the event that the shares of Common Stock issued pursuant to the
Option are (i) registered under the Securities Act of 1933, as amended (the
"Securities Act"), pursuant to an effective registration statement which
complies with the then applicable regulations, rules and procedures and
practices of the Securities and Exchange Commission, and are registered and/or
qualified in accordance with any applicable state laws, regulations, rules and
administrative procedures practices, or (ii) transferred pursuant to an
exemption from registration under the Securities Act and, at the request of
Holdings, Holdings has received an executed legal opinion, satisfactory to its
counsel, as to the availability of and compliance with such exemption and that
such shares need not bear the restrictive legend stating that such shares have
not been registered under the Securities Act, Holdings may issue new
certificates representing such shares omitting that portion of such restrictive
legend.

         The shares of Common Stock acquired pursuant to the Option shall be
subject to the provisions regarding transfers of shares in the Stockholders
Agreement dated as of February 20, 1998, among Holdings and the partners named
on the signature pages thereto, as amended from time to time (the "Stockholders
Agreement"). At the request of Holdings, the Employee shall become a party to
the Stockholders Agreement prior to the issuance of any shares under this
Agreement.

         7. OPTION SUBJECT TO SECURITIES AND OTHER REGULATIONS. The Option
granted hereunder and the obligation of Holdings to sell and deliver shares
under such Option shall be subject to all applicable federal and state laws,
rules and regulations and to such approvals by any government or regulatory
agency as may be required. Holdings, in its discretion, may postpone the

                                       3
<PAGE>   4

issuance or delivery of shares upon any exercise of the Option until completion
of any stock exchange listing, or other qualification of such shares under any
state or federal law, rule or regulation as Holdings may consider appropriate,
and may require the Employee, his beneficiary or his legal representative to
make such representations and furnish such information as it may consider
appropriate in connection with the issuance or delivery of the shares in
compliance with applicable laws, rules and regulations.

         Upon demand by the Board, the Employee (or any person acting under
Section 3 of this Agreement) shall deliver to the Board at the time of exercise
of the Option a written representation that the shares to be acquired upon the
exercise of the Option are being acquired for his own account and not with a
view to, or for resale in connection with, any distribution in violation of
federal or state securities laws. Upon such demand, delivery of such
representation prior to the delivery of any shares issued upon exercise of the
Option shall be a condition precedent to the right of the Employee or such other
person to purchase any shares.

         8. ANTI-DILUTION ADJUSTMENTS. In the event of any change in the Common
Stock by reason of any stock dividend, stock split, recapitalization, merger,
consolidation, combination or exchange of shares, separation, spin-off,
reorganization, liquidation, or of any similar change affecting the Common
Stock, the number and kind of shares subject to the Option and the Option price
thereof shall be appropriately adjusted consistent with such change in such
manner as the Administrator of the Plan may deem equitable to prevent
substantial dilution or enlargement of the rights granted to, or available for,
the Employee.

         9. BUYBACK RIGHT. Upon any termination of the employment of the
Employee prior to a public offering of Common Stock, Holdings or its designee
may at its option purchase all Common Stock acquired upon any exercise of the
Option then held by the Employee for a purchase price equal to the determined
value of such stock at the time of purchase. For purposes of this Section 9,
"determined value" shall mean the determined value of the shares of Common Stock
being purchased by Holdings pursuant to this Section 9, such value to be
determined annually as of March 31 of each year by a nationally recognized
investment banking or appraisal firm selected by Holdings. This valuation will
serve as the determined value for the shares until the next valuation unless the
Board determines that a significant change in Holdings performance or prospects
requires a revaluation of the shares.

         The purchase by Holdings pursuant to this Section 9 shall be paid for
in cash, to the extent permitted under the loan agreements and debt instruments
relating to Holdings or any of its subsidiaries, or, to the extent cash payments
are not permitted thereunder, by means of a subordinated payment-in-kind
promissory note issued by Holdings bearing interest, payable annually, at the
lowest interest rate required to avoid imputed interest, which note shall be
repaid as soon as permitted.

         10. NO RIGHTS AS STOCKHOLDER PRIOR TO EXERCISE OF OPTION. The
Participant shall not have any rights as a stockholder with respect to any
shares subject to the Option prior to the date on which the Employee is recorded
as the holder of such shares on the records of Holdings.

         11. NO RIGHTS WITH RESPECT TO CONTINUANCE OF EMPLOYMENT. Neither the
grant of the Option nor any action taken with respect thereto shall be construed
as giving the Employee the right to be retained in the employ of Universal or
any subsidiary or affiliate, nor shall it interfere in any way with the right of
Universal or any such subsidiary or affiliate to terminate any Employee's
employment at any time for any reason, or for no reason at all.

                                       4
<PAGE>   5

         12. TAXES. Holdings may make such provisions and take such steps as it
may deem necessary or appropriate for the withholding of all Federal, state,
local and other taxes required by law to be withheld with respect to the Option
including, but not limited to: (i) reducing the number of shares of Common Stock
otherwise deliverable, based upon their Fair Market Value on the date of
exercise, to permit deduction of the amount of any such withholding taxes from
the amount otherwise payable under this Agreement; (ii) deducting the amount of
any such withholding taxes from any other amount then or thereafter payable to
the Employee; or (iii) requiring the Employee, his beneficiary or his legal
representative to pay to Holdings the amount required to be withheld or to
execute such documents as Holdings deems necessary or desirable to enable it to
satisfy its withholding obligations as a condition of releasing the Common
Stock.

         13. GOVERNING LAW. This Agreement shall be governed and construed in
accordance with the laws of the State of Delaware applicable to contract made
and to be performed entirely within such state.

         14. 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.

         15. NOTICES. Any notice or other communication required or which may be
given hereunder shall be in writing and shall be delivered personally,
telecopied with confirmed receipt, sent by certified, registered, or express
mail, postage prepaid, or sent by a national next-day delivery service to the
parties at the following addresses or at such other addresses as shall be
specified by the parties by like notice, and shall be deemed given when so
delivered personally or telecopied, or if mailed, 2 days after the date of
mailing, or, if by national next-day delivery service, on the day after delivery
to such service as follows:

         (i)      if to Holdings, at:

                                    Universal Compression Holdings, Inc.
                                    4440 Brittmoore Road
                                    Houston, Texas 77041-8004
                                    Attention:  Richard FitzGerald, C.F.O.
                                    Telecopier No.:  (713) 466-6720

                  with a copy to:
                                    Universal Compression, Inc.
                                    4440 Brittmoore Road
                                    Houston, Texas  77041-8004
                                    Attention:  Valerie L. Banner, General
                                        Counsel
                                    Telecopier No.:  (713) 466-6720

                  with a copy to:

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

                                       5
<PAGE>   6

         (ii)     if to Employee, to him or her at:

                                    Universal Compression, Inc.
                                    4440 Brittmoore Road
                                    Houston, Texas  77041-8004

         16. HEADINGS. The headings in this Agreement are for convenience of
reference only and shall not in any manner define or limit the scope or intent
of any provisions of this Agreement.

         17. SEVERABILITY. If any term, provision, covenant or restriction of
this Agreement, or any part thereof, is held by a court of competent
jurisdiction or 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 terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated.

         18. SPECIFIC PERFORMANCE. Each of the parties hereto acknowledges and
agrees that in the event of any breach of this Agreement, the non-breaching
party would be irreparably harmed and could not be made whole by monetary
damages. It is accordingly agreed that the parties hereto shall and do hereby
waive the defense in any action for specific performance that a remedy at law
would be adequate and that the parties hereto, in addition to any other remedy
to which they may be entitled at law or in equity, shall be entitled to compel
specific performance of this Agreement in any action instituted in the Supreme
Court of the State of New York or the United States District Court for the
Southern District of New York, or, in the event such courts shall not have
jurisdiction of such action, in any court of the United States or any state
thereof having subject matter jurisdiction of such action.

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

                                        EMPLOYEE

                                        By:
                                           -------------------------------------

                                        UNIVERSAL COMPRESSION HOLDINGS, INC.

                                        By:
                                           -------------------------------------

                                       6<PAGE>   1
                                                                   EXHIBIT 10.27

                                    FORM OF
                            INDEMNIFICATION AGREEMENT

                  This INDEMNIFICATION AGREEMENT made and entered into effective
as of _________________, ("Agreement"), by and between UNIVERSAL COMPRESSION
HOLDINGS, INC., a Delaware corporation ("Company"), and _______________________
("Indemnitee").

                              W I T N E S S E T H:

                  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

<PAGE>   2

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 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 4 hereof, and as
a result is not entitled under Section 5 hereof to

                                       2
<PAGE>   3

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.

                                       3
<PAGE>   4

                  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

                                       4
<PAGE>   5

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

                                       5
<PAGE>   6

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

                                       6
<PAGE>   7

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 as of the day and year first above written.

                                      UNIVERSAL COMPRESSION HOLDINGS, INC.

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

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

                                      Address:
                                              ----------------------------------

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

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

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]