<PAGE>

                                                                    EXHIBIT 10.4

                         EMPLOYEE STOCK OPTION AGREEMENT

     This Employee Stock Option Agreement, dated as of December 19, 2006,
between Atlas Copco North America Inc. (to be renamed RSC Holdings Inc.), a
Delaware corporation, and the Employee whose name appears on the signature page
hereof, is being entered into pursuant to the Atlas Copco North America Inc. (to
be renamed RSC Holdings Inc.) Stock Incentive Plan. The meaning of capitalized
terms may be found in Section 7.

     The Company and the Employee hereby agree as follows:

     Section 1. Grant of Options

          (a) Confirmation of Grant. The Company hereby evidences and confirms,
     effective as of the date hereof, its grant to the Employee of (i) Service
     Options to purchase the number of Common Shares specified on the signature
     page hereof under the heading "Service Options" and (ii) Performance
     Options to purchase the number of Common Shares specified on the signature
     page hereof under the heading "Performance Options." The Options are not
     intended to be incentive stock options under the Code. This Agreement is
     entered into pursuant to, and the terms of the Options are subject to, the
     terms of the Plan. If there is any inconsistency between this Agreement and
     the terms of the Plan, the terms of the Plan shall govern.

          (b) Option Price. Each share covered by an Option shall have the
     Option Price specified on the signature page hereof.

     Section 2. Vesting and Exercisability

          (a) Service Options. Except as otherwise provided in Section 6 or
     Section 2(d)of this Agreement, the Service Options shall become vested in
     five equal annual installments on each of the first through fifth
     anniversaries of the Grant Date, subject to the continuous employment of
     the Employee with the Company until the applicable vesting date; provided
     that if the Employee's employment with the Company is terminated in a
     Special Termination (i.e., by reason of the Employee's death or
     Disability), any Service Options

<PAGE>

     held by the Employee shall immediately vest as of the effective date of
     such Special Termination.

          (b) Performance Options.

               (i) Annual Vesting Opportunity. Subject to the continuous
          employment of the Employee with the Company until the applicable
          vesting date, up to 20% of the Performance Options may vest with
          respect to each of Fiscal Years 2007 through 2011 depending on the
          Company's achievement compared with the Annual Performance Target for
          such year, as follows:

                    (A) none of the Performance Options eligible to vest with
               respect to such Fiscal Year will vest if the Company has achieved
               less than 80% the applicable Annual Performance Target; and

                    (B) between 50% and 100% of the Performance Options eligible
               to vest with respect to such Fiscal Year (i.e., 10-20%) will vest
               if the Company achieves at least 80% of the applicable Annual
               Performance Target, with 50% vesting at 80% achievement, 100%
               vesting at 100% (or higher) achievement and ratable vesting of
               between 50 and 100% for achievement between 80 and 100%.

               (ii) Catch-Up Vesting Opportunity. If the Annual Performance
          Target is not achieved for a particular Fiscal Year (a "Missed Year"),
          the amount by which the achievement fell short of such Annual
          Performance Target for such Fiscal Year (the "Shortfall") shall be
          carried forward and the Performance Options that do not vest pursuant
          to Section 2(b)(i) with respect to such Missed Year (the "Carryforward
          Options") shall, subject to the continuous employment of the Employee
          with the Company until the applicable vesting date, be eligible for
          vesting based on the achievement of the combined Annual Performance
          Targets for the two Fiscal Years ending immediately after the Missed
          Year (the "Cumulative Target"), as follows:

                    (A) none of the Carryforward Options eligible to vest with
               respect to the two Fiscal Years


                                        2

<PAGE>

               ending immediately after a Missed Year will vest if the Company
               has achieved 100% or less of the applicable Cumulative Target;
               and

                    (B) between 0% and 100% of the Carryforward Options eligible
               to vest with respect to such two Fiscal Years ending immediately
               after a Missed Year will vest if the Company achieves more than
               100% of the applicable Cumulative Targets, with 100% vesting if
               the Company achieves an amount equal to or greater than the
               Shortfall and ratable vesting of between 0% and 100% for
               achievement between 0% and 100% of the Shortfall.

               (iii) Change in Control Vesting. On a Change in Control in which
          the Investors receive only cash consideration for their equity of the
          Company, Performance Options eligible for vesting with respect to
          Fiscal Years ending after the Change in Control will vest, subject to
          the continuous employment of the Employee with the Company until the
          Change in Control, if and to the extent that (after giving effect to
          vesting of all options) the Change in Control results in the Investors
          having achieved at least the actual cash return on their investment
          (for the avoidance of doubt, to be determined excluding any fees or
          other amounts paid or payable to any Affiliate of any Investor) in the
          Company ("ROI") for the applicable Fiscal Year set forth below, with
          50% vesting at achievement of the Minimum ROI, 100% vesting at
          achievement of the Target ROI, and ratable vesting of between 50 and
          100% for achievement of between the Minimum ROI and the Target ROI,
          and any Performance Options that do not so vest will, unless the Board
          determines otherwise, be cancelled upon such Change in Control.

<TABLE>
<CAPTION>
YEAR   MINIMUM ROI   TARGET ROI
----   -----------   ----------
<S>    <C>           <C>
2007      1.75x          2x
2008      2.25x        2.5x
</TABLE>


                                        3

<PAGE>

<TABLE>
<S>    <C>           <C>
2009      2.75x          3x
2010      3.25x        3.5x
2011      3.75x          4x
</TABLE>

          (c) Vesting Date. The applicable vesting date for a Fiscal Year's
     Performance Options or, if applicable, Carryforward Options, shall be the
     date the Audit Committee of the Company's Board of Directors approves the
     Company's annual audited financial statements for the applicable Fiscal
     Year(s).

          (d) Discretionary Acceleration. The Board, in its sole discretion, may
     accelerate the vesting or exercisability of any Option, all or a portion of
     any class of Options, at any time and from time to time.

          (e) Exercise. Once vested in accordance with the provisions of this
     Agreement, the Options may be exercised at any time and from time to time
     prior to the date such Options terminate pursuant to Section 3. Options may
     only be exercised with respect to whole Common Shares and must be exercised
     in accordance with Section 4.

     Section 3. Termination of Options

          (a) Normal Termination Date. Unless earlier terminated pursuant to
     Section 3(b) or Section 6, the Options shall terminate on the tenth
     anniversary of the Grant Date (the "Normal Termination Date"), if not
     exercised prior to such date.

          (b) Early Termination. If the Employee's employment with the Company
     terminates for any reason, any Options held by the Employee that have not
     vested before the effective date of such termination of employment
     (determined without regard to any statutory or deemed or express
     contractual notice period) or that do not become vested on such date in
     accordance with Section 2 shall terminate immediately upon such termination
     of employment (determined without regard to any statutory or deemed or
     express contractual notice period) and, if the Employee's employment is


                                        4

<PAGE>

     terminated for Cause, all Options (whether or not then vested or
     exercisable) shall automatically terminate immediately upon such
     termination. All vested Options held by the Employee following the
     effective date of a termination of employment shall remain exercisable
     until the first to occur of (i) the 90th day following the effective date
     of the Employee's termination of employment (determined without regard to
     any deemed or express statutory or contractual notice period), (ii) the
     180th day in the case of a Special Termination or a retirement from active
     service on or after the Employee reaches normal retirement age, (iii) the
     Normal Termination Date or (iv) the cancellation of the Options pursuant to
     Section 6(a), and if not exercised within such period the Options shall
     automatically terminate upon the expiration of such period.

     Section 4. Manner of Exercise

          (a) General. Subject to such reasonable administrative regulations as
     the Board may adopt from time to time, the Employee may exercise vested
     Options by giving at least 15 business days prior written notice to the
     Secretary of the Company specifying the proposed date on which the Employee
     desires to exercise a vested Option (the "Exercise Date"), the number of
     whole shares with respect to which the Options are being exercised (the
     "Exercise Shares") and the aggregate Option Price for such Exercise Shares
     (the "Exercise Price"); provided that following a Public Offering notice
     may be given within such lesser period as the Board may permit. On or
     before any Exercise Date, the Company and the Employee shall enter into an
     Employee Stock Subscription in such form, and containing such transfer and
     other restrictions as the Board determines appropriate. Unless otherwise
     determined by the Board, and subject to such other terms, representations
     and warranties as may be provided for in the Employee Stock Subscription
     Agreement, (i) on or before the Exercise Date the Employee shall deliver to
     the Company full payment for the Exercise Shares in United States dollars
     in cash, or cash equivalents satisfactory to the Company, in an amount
     equal to the Exercise Price plus any required withholding taxes or other
     similar taxes, charges or fees and (ii) the Company shall register the
     issuance of the Exercise Shares on its records (or direct such issuance to
     be registered by the Company's transfer agent). The Company may require the
     Employee to furnish or execute such other documents as the Company shall
     reasonably deem necessary (x) to evidence such exercise, (y) to determine
     whether registration is then required under the Securities Act or other
     applicable law or (z) to comply with or


                                        5

<PAGE>

     satisfy the requirements of the Securities Act, applicable state or
     non-U.S. securities laws or any other law.

          (b) Restrictions on Exercise. Notwithstanding any other provision of
     this Agreement, the Options may not be exercised in whole or in part, and
     no certificates representing Exercise Shares shall be delivered, (i) unless
     all requisite approvals and consents of any governmental authority of any
     kind shall have been secured, (ii) unless the purchase of the Exercise
     Shares shall be exempt from registration under applicable U.S. federal and
     state securities laws, and applicable non-U.S. securities laws, or the
     Exercise Shares shall have been registered under such laws, and (iii)
     unless all applicable U.S. federal, state and local and non-U.S. tax
     withholding requirements shall have been satisfied. The Company shall use
     its commercially reasonable efforts to obtain any consents or approvals
     referred to in clause (i) of the preceding sentence, but shall otherwise
     have no obligations to take any steps to prevent or remove any impediment
     to exercise described in such sentence.

     Section 5. Employee's Representations; Investment Intention. The Employee
represents and warrants that the Options have been, and any Exercise Shares will
be, acquired by the Employee solely for the Employee's own account for
investment and not with a view to or for sale in connection with any
distribution thereof. The Employee represents and warrants that the Employee
understands that none of the Exercise Shares may be transferred, sold, pledged,
hypothecated or otherwise disposed of unless the provisions of the related
Employee Stock Subscription Agreement shall have been complied with or have
expired.

     Section 6. Change in Control

          (a) Vesting and Cancellation. Except as otherwise provided in this
     Section 6, in the event of a Change in Control, all then-outstanding
     Service Options and Performance Options (whether vested or unvested) shall
     be canceled in exchange for a payment having a value equal to the excess,
     if any, of (i) the product of the Change in Control Price multiplied by the
     aggregate number of shares covered by all such Service Options and the
     then-vested Performance Options immediately prior to the Change in Control
     over (ii) the aggregate Option Price for all such shares, to be paid as
     soon as reasonably practicable, but in no event later than 30 days
     following the Change in Control.


                                        6

<PAGE>

          (b) Alternative Award. Notwithstanding Section 6(a), no cancellation,
     termination, or settlement or other payment shall occur with respect to any
     Option if the Board reasonably determines prior to the Change in Control
     that the Employee shall receive an Alternative Award meeting the
     requirements of the Plan.

          (c) Limitation of Benefits. If, whether as a result of accelerated
     vesting, the grant of an Alternative Award or otherwise, the Employee would
     receive any payment, deemed payment or other benefit as a result of the
     operation of Section 6(a) or Section 6(b) that, by itself or together with
     any other payment, deemed payment or other benefit the Employee may receive
     under any other plan, program, policy or arrangement, would constitute an
     "excess parachute payment" under section 280G of the Code, then,
     notwithstanding anything in this Section 6 to the contrary, the payments,
     deemed payments or other benefits such Employee would otherwise receive
     under Section 6(a) or Section 6(b) shall be reduced to the extent necessary
     to eliminate any such excess parachute payment and such Employee shall have
     no further rights or claims with respect thereto. If the preceding sentence
     would result in a reduction of the payments, deemed payments or other
     benefits the Employee would otherwise receive on an after-tax basis by more
     than 5%, the Company will use its commercially reasonable best efforts to
     seek the approval of the Company's shareholders in the manner provided for
     in section 280G(b)(5) of the Code and the regulations thereunder with
     respect to such reduced payments or other benefits (if the Company is
     eligible to do so), so that such payments would not be treated as
     "parachute payments" for these purposes (and therefore would cease to be
     subject to reduction pursuant to this Section 6(c)).

     Section 7. Certain Definitions. As used in this Agreement, capitalized
terms that are not defined herein have the respective meaning given in the Plan,
and the following additional terms shall have the following meanings:

          "Agreement" means this Employee Stock Option Agreement, as amended
     from time to time in accordance with the terms hereof.

          "Annual Performance Target" means, with respect to each Fiscal Year,
     the EBITDA and total debt-to-EBITDA targets for such Fiscal Year as set by
     the Compensation Committee; provided, that if the Company consummates a
     significant acquisition, disposition or other corporate transaction that,
     in the judgment of the Compensation Committee, would


                                        7

<PAGE>

     reasonably be expected to impact the consolidated earnings of the Company,
     the Annual Performance Target for the relevant Fiscal Years may be
     appropriately adjusted by the Compensation Committee to reflect such
     transaction or series of transactions. The Compensation Committee shall
     establish the Annual Performance Target for each Fiscal Year within 30 days
     after the beginning of each such Fiscal Year.

          "Carryforward Options" has the meaning given in Section 2(b)(ii).

          "Code" means the United States Internal Revenue Code of 1986, as
     amended, and any successor thereto.

          "Company" means Atlas Copco North America Inc. (to be renamed RSC
     Holdings Inc.), provided that for purposes of determining the status of
     Employee's employment with the "Company," such term shall include the
     Company and its Subsidiaries.

          "Cumulative Target" has the meaning given in Section 2(b)(ii).

          "Employee" means the grantee of the Options, whose name is set forth
     on the signature page of this Agreement; provided that for purposes of
     Section 4 and Section 8, following such person's death "Employee" shall be
     deemed to include such person's beneficiary or estate and following such
     Person's Disability, "Employee" shall be deemed to include such person's
     legal representative.

          "Employee Stock Subscription Agreement" means a "Stock Subscription
     Agreement" as defined in the Plan.

          "Exercise Date" has the meaning given in Section 4(a).

          "Exercise Price" has the meaning given in Section 4(a).

          "Exercise Shares" has the meaning given in Section 4(a).

          "Fiscal Year" means a fiscal year of the Company.

          "Grant Date" means the date hereof, which is the date on which the
     Options are granted to the Employee.

          "Missed Year" has the meaning given in Section 2(b)(ii).

          "Normal Termination Date" has the meaning given in Section 3(a).


                                        8

<PAGE>

          "Option" means the right granted to the Employee hereunder to purchase
     one Common Share for a purchase price equal to the Option Price subject to
     the terms of this Agreement and the Plan.

          "Option Price" means, with respect to each Common Share covered by an
     Option, the purchase price specified in Section 1(b) for which the Employee
     may purchase such Common Share upon exercise of an Option.

          "Performance Options" means those Options that are subject to the
     provisions of Section 2(b) hereof providing for the vesting of such Options
     on the basis of the financial performance of the Company and the continued
     employment of the Employee. The number of Performance Options granted to
     the Employee pursuant to this Agreement is specified on the signature page
     hereof under the heading "Performance Options."

          "Plan" means the Atlas Copco North America Inc. (to be renamed RSC
     Holdings Inc.) Stock Incentive Plan.

          "ROI" has the meaning given in Section 2(b)(iii).

          "Securities Act" means the United States Securities Act of 1933, as
     amended, or any successor statute, and the rules and regulations thereunder
     that are in effect at the time, and any reference to a particular section
     thereof shall include a reference to the corresponding section, if any, of
     such successor statute, and the rules and regulations.

          "Service Options" means those Options that are subject to the
     provisions of Section 2(a) hereof providing for the vesting of such Options
     on the basis of the Employee's completion of service. The number of Service
     Options granted to the Employee pursuant to this Agreement is specified on
     the signature page hereof under the heading "Service Options."

          "Shortfall" has the meaning given in Section 2(b)(ii).

          "Special Termination" means a termination of the Employee's employment
     as a result of his or her death or Disability.

     Section 8. Miscellaneous.

          (a) Withholding. The Company or one of its Subsidiaries may require
     the Employee to remit to the Company an amount in cash sufficient to
     satisfy any applicable U.S. federal, state and local and non-U.S. tax
     withholding or other similar charges or fees that


                                        9

<PAGE>

     may arise in connection with the grant, vesting, exercise or purchase of
     the Options.

          (b) Authorization to Share Personal Data. The Employee authorizes any
     Affiliate of the Company that employs the Employee or that otherwise has or
     lawfully obtains personal data relating to the Employee to divulge or
     transfer such personal data to the Company or to a third party, in each
     case in any jurisdiction, if and to the extent appropriate in connection
     with this Agreement or the administration of the Plan.

          (c) No Rights as Stockholder; No Voting Rights. The Employee shall
     have no rights as a stockholder of the Company with respect to any Shares
     covered by the Options until the exercise of the Options and delivery of
     the Shares. No adjustment shall be made for dividends or other rights for
     which the record date is prior to the delivery of the Shares. Any Shares
     delivered in respect of the Options shall be subject to the Employee Stock
     Subscription Agreement and the Employee shall have no voting rights with
     respect to such Shares until such time as specified in the Employee Stock
     Subscription Agreement.

          (d) No Right to Continued Employment. Nothing in this Agreement shall
     be deemed to confer on the Employee any right to continue in the employ of
     the Company or any Subsidiary, or to interfere with or limit in any way the
     right of the Company or any Subsidiary to terminate such employment at any
     time.

          (e) Non-Transferability of Options. The Options may be exercised only
     by the Employee. The Options are not assignable or transferable, in whole
     or in part, and they may not, directly or indirectly, be offered,
     transferred, sold, pledged, assigned, alienated, hypothecated or otherwise
     disposed of or encumbered (including, but not limited to, by gift,
     operation of law or otherwise) other than by will or by the laws of descent
     and distribution to the estate of the Employee upon the Employee's death or
     with the Company's consent; provided that the Board may permit, on such
     terms as it determines appropriate (including, but not limited to,
     assurances as to compliance with all applicable securities and other laws)
     permit a transfer for estate planning purposes.

          (f) Notices. All notices and other communications required or
     permitted to be given under this Agreement shall be in


                                       10

<PAGE>

     writing and shall be deemed to have been given if delivered personally or
     sent by certified or express mail, return receipt requested, postage
     prepaid, or by any recognized international equivalent of such delivery, to
     the Company or the Employee, as the case may be, at the following addresses
     or to such other address as the Company or the Employee, as the case may
     be, shall specify by notice to the other:

               (i) if to the Company, to it at:

               Atlas Copco North America Inc. (to be renamed RSC Holdings Inc.)
               c/o Ripplewood Holdings, L.L.C.
               One Rockefeller Plaza, 32nd Floor
               New York, NY 10020
               Attn: Christopher P. Minnetian, Esq.
               (212) 218-2778 (telecopier)
               (212) 582-6700 (telephone)
               cminnetian@ripplewood.com (email)

               Atlas Copco North America Inc. (to be renamed RSC Holdings Inc.)
               c/o Oak Hill Capital Management, L.L.C.
               717 Fifth Avenue, 12th Floor
               New York, NY 10022
               Attn: John R. Monsky, Esq.
               (212) 527-8450 (telecopier)
               (212) 527-8490 (telephone)
               jmonsky@oakhillcapital.com

               (ii) if to the Employee, to the Employee at his or her most
          recent address as shown on the books and records of the Company or
          Subsidiary employing the Employee; and

     copies of any notice or other communication given under this Agreement
     shall also be given to:

               Debevoise & Plimpton LLP
               919 Third Avenue
               New York, New York 10022


                                       11

<PAGE>

               Attn: Jeffrey J. Rosen, Esq.
               (212) 909-6836 (telecopier)
               (212) 909-6000 (telephone)
               jrosen@debevoise.com (email)

All such notices and communications shall be deemed to have been received on the
date of delivery if delivered personally or on the third business day after the
mailing thereof.

          (g) Binding Effect; Benefits. This Agreement shall be binding upon and
     inure to the benefit of the parties to this Agreement and their respective
     successors and assigns. Nothing in this Agreement, express or implied, is
     intended or shall be construed to give any person other than the parties to
     this Agreement or their respective successors or assigns any legal or
     equitable right, remedy or claim under or in respect of any agreement or
     any provision contained herein.

          (h) Waiver; Amendment.

               (i) Waiver. Any party hereto or beneficiary hereof may by written
          notice to the other parties (A) extend the time for the performance of
          any of the obligations or other actions of the other parties under
          this Agreement, (B) waive compliance with any of the conditions or
          covenants of the other parties contained in this Agreement and (C)
          waive or modify performance of any of the obligations of the other
          parties under this Agreement. Except as provided in the preceding
          sentence, no action taken pursuant to this Agreement, including,
          without limitation, any investigation by or on behalf of any party or
          beneficiary, shall be deemed to constitute a waiver by the party or
          beneficiary taking such action of compliance with any representations,
          warranties, covenants or agreements contained herein. The waiver by
          any party hereto or beneficiary hereof of a breach of any provision of
          this Agreement shall not operate or be construed as a waiver of any
          preceding or succeeding breach and no failure by a party or
          beneficiary to exercise any right or privilege hereunder shall be
          deemed a waiver of such party's or beneficiary's rights or privileges
          hereunder or shall be deemed a waiver of such party's or beneficiary's
          rights to exercise the same at any subsequent time or times hereunder.


                                       12

<PAGE>

               (ii) Amendment. This Agreement may not be amended, modified or
          supplemented orally, but only by a written instrument executed by the
          Employee and the Company.

          (i) Assignability. Neither this Agreement nor any right, remedy,
     obligation or liability arising hereunder or by reason hereof shall be
     assignable by the Company or the Employee without the prior written consent
     of the other party.

          (j) Applicable Law. This Agreement shall be governed by and construed
     in accordance with the law of the State of Delaware regardless of the
     application of rules of conflict of law that would apply the laws of any
     other jurisdiction.

          (k) Section and Other Headings, etc. The section and other headings
     contained in this Agreement are for reference purposes only and shall not
     affect the meaning or interpretation of this Agreement.

          (l) Counterparts. This Agreement may be executed in any number of
     counterparts, each of which shall be deemed to be an original and all of
     which together shall constitute one and the same instrument.


                                       13

<PAGE>

     IN WITNESS WHEREOF, the Company and the Employee have executed this
Agreement as of the date first above written.

                                        ATLAS COPCO NORTH AMERICA INC.
                                        (to be renamed RSC Holdings Inc.)


                                        By:
                                            ------------------------------------
                                        Name: Joseph Turturica
                                        Title: Senior Vice President


                                        THE EMPLOYEE:

                                        ----------------------------------------
                                        (Name)


                                        By:
                                            ------------------------------------
                                            as Attorney-in-Fact
                                        Name: Joseph Turturica


                                        Address of the Employee:

                                        ----------------------------------------
                                        (Address)

<TABLE>
<CAPTION>
         SERVICE OPTIONS                      PERFORMANCE OPTIONS
         ---------------                      -------------------
<S>                                  <C>                                      <C>
      Total Number of Shares                 Total Number of Shares           Option Price:
    for the Purchase of Which              for the Purchase of Which
Service Options have been Granted:   Performance Options have been Granted:
        (Service_Options)                    (Performance_Options)               $244.25
</TABLE>


                                       14