Document:

exv10w3

Exhibit 10.3

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

 

 

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

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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.

	 	 	 	 	 	 	 	 	 
	YEAR	 	MINIMUM ROI	 	TARGET ROI
	2007
	 	 	1.75x	 	 	 	2x	 
	2008
	 	 	2.25x	 	 	 	2.5x	 

3

 

	 	 	 	 	 	 	 	 	 
	YEAR	 	MINIMUM ROI	 	TARGET ROI
	2009
	 	 	2.75x	 	 	 	3x	 
	2010
	 	 	3.25x	 	 	 	3.5x	 
	2011
	 	 	3.75x	 	 	 	4x	 

     (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

 

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

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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.

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     (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

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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).

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     “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

 

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

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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

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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.

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     (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.

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     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)	 	 

	 	 	 	 	 	 	 
	SERVICE OPTIONS	 	PERFORMANCE OPTIONS	 	 	 	 
	Total Number of Shares

	 	Total Number of Shares
	 	Option Price:

	for the Purchase of Which
Service Options have been Granted:

	 	for the Purchase of Which
Performance Options have been Granted:	 	 	 	 
	(Service_Options)

	 	(Performance_Options)
	 	$	244.25	 

14exv10w4

Exhibit 10.4

EMPLOYEE STOCK SUBSCRIPTION AGREEMENT

     This Employee Stock Subscription 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 each
capitalized term may be found in Section 12.

     The Company and the Employee hereby agree as follows:

     Section 1. Purchase and Sale of Common Shares

     (a) In General. Subject to all of the terms of this Agreement, at the Closing the Employee shall
purchase, and the Company shall sell, the aggregate number of Common Shares set forth on the
signature page hereof (the “Shares”), at the purchase price set forth on the signature page hereof.

     (b) Condition to Sale. Notwithstanding anything in this Agreement to the contrary, the Company
shall have no obligation to sell any Common Shares to any person who is not an employee of the
Company or any of its Subsidiaries at the time that such Common Shares are to be sold or who is a
resident of a jurisdiction in which the sale of Common Shares to him would constitute a violation
of the securities, “blue sky” or other laws of such jurisdiction, or if the Employee’s proposed
investment in the Shares is less than the minimum established for the Employee by the Company.

     Section 2. The Closing

     (a) Time and Place. The Company shall determine the time and place of the closing of the purchase
and sale of the Shares (the “Closing”).

     (b) Delivery by the Employee. At the Closing, the Employee shall deliver to the Company the
aggregate purchase price for the Shares.

     (c) Delivery by the Company. At the Closing, the Company shall register the Shares in the name of
the Employee. Certificates relating to the Shares shall be held by the Secretary of the Company or
his designee on behalf of the Employee.

 

 

     Section 3. Employee’s Representations and Warranties

     (a) Access to Information, Etc. The Employee represents, warrants and covenants as follows:

     (i) the Employee has carefully reviewed the Offering Memorandum, dated as of November 17, 2006,
each of its exhibits, annexes and other attachments, each document incorporated by reference into
the Offering Memorandum, and the other materials furnished to the Employee in connection with the
offer and sale of the Shares pursuant to this Agreement;

     (ii) the Employee has had an adequate opportunity to consider whether or not to purchase any of the
Common Shares offered to the Employee, and to discuss such purchase with the Employee’s legal, tax
and financial advisors;

     (iii) the Employee understands the terms and conditions that apply to the Shares and the risks
associated with an investment in the Shares;

     (iv) the Employee has a good understanding of the English language;

     (v) the Employee is, and will be at the Closing, an officer or employee of the Company or one of
its Subsidiaries; and

     (vi) the Employee is, and will be at the Closing, a resident of the jurisdiction indicated as his
or her address set forth on the signature page of this Agreement.

     (b) Ability to Bear Risk. The Employee represents and warrants as follows:

     (i) the Employee understands that the rights of first refusal and other transfer restrictions that
apply to the Shares may effectively preclude the transfer of any of the Shares prior to a Public
Offering;

     (ii) the financial situation of the Employee is such that he or she can afford to bear the economic
risk of holding the Shares for an indefinite period;

2

 

     (iii) the Employee can afford to suffer the complete loss of his or her investment in the Shares;

     (iv) the Employee understands that the Company’s Financing Agreements may restrict the ability of
the Company to repurchase the Shares pursuant to Section 6 and that the Company and its
Subsidiaries may enter into or amend, refinance or enter into new Financing Agreements without
regard to the impact on the Company’s ability to repurchase the Shares; and

     (v) the Employee understands the special obligations and provisions that are found in Section 7.

     (c) Voluntary Purchase. The Employee represents and warrants that the Employee is purchasing the
Shares voluntarily.

     (d) No Right to Awards. The Employee acknowledges and agrees that the sale of the Shares and the
grant of any options that are awarded to the Employee in connection with the purchase of the Shares
(i) are being made on an exceptional basis and are not intended to be renewed or repeated, (ii) are
entirely voluntary on the part of the Company and its Subsidiaries and (iii) should not be
construed as creating any obligation on the part of the Company or any of its Subsidiaries to offer
any securities in the future.

     (e) Investment Intention. The Employee represents and warrants that the Employee is acquiring the
Shares solely for his or her own account for investment and not on behalf of any other person or
with a view to, or for sale in connection with, any distribution of the Shares.

     (f) Securities Law Matters. The Employee acknowledges and represents and warrants that the Employee
understands that:

     (i) the Shares have not been registered under the Securities Act or any state or non-United States
securities or “blue sky” laws;

     (ii) it is not anticipated that there will be any public market for the Shares;

     (iii) the Shares must be held indefinitely and the Employee must continue to bear the economic risk
of the investment in the Shares unless the Shares are subsequently registered under applicable
securities and other laws or an exemption from registration is available;

3

 

     (iv) the Company is under no obligation to register the Shares or to make an exemption from
registration available; and

     (v) a restrictive legend shall be placed on any certificates representing the Shares that makes
clear that the Shares are subject to the restrictions on transferability set forth in this
Agreement and a notation shall be made in the appropriate records of the Company or any transfer
agent indicating that the Shares are subject to such restrictions.

     (g) Voting Proxy. By entering into this Agreement and purchasing the
Shares, the Employee hereby irrevocably grants to and appoints the
Investors collectively (to act by unanimous consent) as such Employee’s
proxy and attorney-in-fact (with full power of substitution), for and in
the name, place and stead of such Employee, to vote or act by unanimous
written consent with respect to such Employee’s Shares. The Employee hereby
affirms that the irrevocable proxy set forth in this Section 3(g) will be
valid until the consummation of a Public Offering. The Employee hereby
further affirms that the proxy hereby granted shall be irrevocable and
shall be deemed coupled with an interest and shall extend until the
consummation of a Public Offering or, if earlier, until the last date
permitted by law. For the avoidance of doubt, except as expressly
contemplated by this Section 3(g), the Employee has not granted a proxy to
any Person to exercise the rights of such Employee under this Agreement or
any other agreement relating to the Shares to which such Employee is a
party.

     Section 4. Restriction on Transfer of Shares

     (a) In General. The Employee shall not Transfer any of the Shares
other than (i) upon the Employee’s death by will or by the laws of descent
and distribution, (ii) repurchases by the Company or the Investors pursuant
to Section 6 hereof or (iii) after a Public Offering, if and to the extent
such Transfer would not result in the Employee having Transferred a greater
percentage of Common Shares held by the Employee or acquired within the
first 12 months after the Closing Date than the percentage of the
Investors’ Initial Holdings Transferred to Third Party Buyers as of such
date. Shares may only be Transferred in a manner that complies with all
applicable securities laws and, if the Company so requests, prior to any
attempted Transfer the Employee shall provide to the Company at the
Employee’s expense such information relating to the compliance of such
proposed Transfer with the terms of this Agreement and applicable
securities laws as the Company shall reasonably request, which may include
an opinion in

4

 

form and substance reasonably satisfactory to the Company of counsel
regarding such securities law or other matters as the Company shall request
(such counsel to be reasonably satisfactory to the Company).

     (b) No Transfer That Would Result In Registration Requirements. Prior
to a Public Offering, the Shares may not be Transferred if such Transfer
would result in the Company becoming subject to the reporting requirements
of Section 13 or 15(d) of the Exchange Act (or other similar provision of
non-U.S. law) or would increase the risk that the Company would be subject
to such reporting requirements as determined by the Company in its sole and
absolute discretion. Any purported Transfer in violation of this Section
4(b) shall be void ab initio.

     Section 5. Reinvestment of Certain Proceeds. In the event of a
recapitalization, dividend or other similar adjustment to the Company’s
capitalization in the first two years following the Closing Date, the Employee
shall purchase additional Common Shares with the proceeds of, or, if available,
refrain from participating in, such recapitalization, dividend or other similar
adjustment to the Company’s capitalization, if and to the extent it would result
in payments to the Employee having been received with respect to the Shares in
excess of 50% of the aggregate purchase price for the Shares. Any additional
shares acquired pursuant to this Section 5 shall be subject to terms and
conditions substantially similar to the terms and conditions of the Shares.

     Section 6. Options Effective on Termination of Employment Prior to a Public
Offering

     (a) Rights of the Company. If the Employee’s employment with the
Company terminates for any reason prior to a Public Offering, the Company
may elect to purchase all or a portion of the Shares by written notice to
the Employee delivered on or before the 90th day after the Determination
Date (the “Option Period”).

     (b) Limited Right of the Employee to Require the Company to Repurchase
Shares. If the Employee’s employment with the Company is terminated by the
Employee upon Retirement or by reason of the Disability or death of the
Employee or is terminated by the Company without Cause (including in
connection with a sale by the Company of the division or Subsidiary
directly employing the employee), the Employee may require the Company to
purchase all (but not less than all) of an Employee’s Shares (excluding any
Shares acquired on exercise of an Option) by written notice delivered to
the Company within 60 days following the expiration of the Option Period.

5

 

     (c) Purchase Price. The purchase price per Share pursuant to this
Section 6 shall equal the Fair Market Value as of the later of (i) the
effective date of the Employee’s termination of employment (determined
without regard to any statutory or deemed or express contractual notice
period) and (ii) six months and one day from the date of the Employee’s
acquisition of the Shares pursuant to this Agreement (such date, the
“Determination Date”), provided that if the Employee’s employment is
terminated by the Company for Cause or the Employee has violated any of the
material terms of this Agreement, including but not limited to Section 7,
the purchase price per Share shall equal the lesser of (A) the Fair Market
Value of such Share as of the Determination Date, (B) the price at which
the Employee purchased such Share from the Company pursuant to this
Agreement or (C) $0.10 per Share if such termination was based on actions
by the Employee that had or are reasonably likely to have a significant
financial impact on the Company, as determined by an affirmative vote of
not less than two-thirds of the membership of the Board, or involved theft
from the Company or the Employee has violated any of the material terms of
this Agreement, including but not limited to Section 7.

     (d) Closing of Purchase; Payment of Purchase Price. Subject to Section
6(f), the closing of a purchase pursuant to this Section 6 shall take place
at the principal office of the Company no later than the 100th day
following the Determination Date (or, in the case of a purchase pursuant to
Section 6(b), no later than 10 business days following the Company’s
receipt of written notice from the Employee pursuant to Section 6(b)). At
the closing, (i) the Company shall, subject to Section 6(e), pay the
Purchase Price to the Employee and (ii) if the Employee actually holds any
certificates or other instruments representing the Shares so purchased, the
Employee shall deliver to the Company such certificates or other
instruments, appropriately endorsed by the Employee or directing that the
shares be so transferred to the purchaser thereof, as the Company may
reasonably require.

     (e) Application of the Purchase Price to Certain Loans or Other
Obligations. The Company shall be entitled to apply any amounts otherwise
payable pursuant to this Section 6 to discharge any indebtedness of the
Employee to the Company or any of its Subsidiaries or indebtedness that is
guaranteed by the Company or any of its Subsidiaries or to offset any such
amounts against any other obligations of the Employee to the Company or any
of its Subsidiaries.

     (f) Certain Restrictions on Repurchases; Delay of Repurchase.
Notwithstanding any other provision of this Agreement, the Company shall

6

 

not be permitted or obligated to make any payment with respect to a
repurchase of any Shares from the Employee if (i) such repurchase (or the
payment of a dividend by a Subsidiary to the Company to fund such
repurchase) would result in a violation of the terms or provisions of, or
result in a default or an event of default under any guaranty, financing or
security agreement or document entered into by the Company or any
Subsidiary from time to time (the “Financing Agreements”), (ii) such
repurchase would violate any of the terms or provisions of the Certificate
of Incorporation and By-laws of the Company or (iii) the Company has no
funds legally available to make such payment under the General Corporation
Law of the State of Delaware. If payment with respect to a repurchase by
the Company otherwise permitted or required under this Section 6 is
prevented by the terms of the preceding sentence the Company shall have the
option to either (x) make such payment at the earliest practicable date
permitted under this Section 6 and any such payment shall accrue simple
interest at a rate per annum of 6% from the date such payment is due and
owing to the date such payment is made or (y) pay the purchase price for
such Shares with a subordinated note that is fully subordinated in right of
payment and exercise of remedies to the lenders’ rights under the Financing
Agreements and payable in full at the earliest practicable date permitted
under this Section 6.

     (g) Right to Retain Shares. If the option of the Company to purchase
the Shares pursuant to this Section 6 is not exercised with respect to all
of the Shares, the Employee shall be entitled to retain the remaining
Shares, although those Shares shall remain subject to all of the other
provisions of this Agreement.

     (h) Notice of Termination; Etc. Prior to a Public Offering, the
Company shall give prompt written notice to the Investors of any
termination of the Employee’s employment with the Company and of the
Company decision whether or not to purchase Shares pursuant to Section
6(a).

     (i) Public Offering. The provisions of this Section 6 shall terminate
upon a Public Offering, provided that such termination shall not affect the
Company’s repurchase right following a termination for Cause that was
effective (or deemed to be effective) prior to such Public Offering or any
payment obligation postponed pursuant to Section 6(f).

     (j) Assignment and Allocation of Purchase Rights. The Employee
acknowledges and agrees that the Company may assign its repurchase and
other rights under this Section 6 to the Investors and that the Investors
may

7

 

allocate such rights among themselves in such manner as they, in their sole
discretion, may agree from time to time.

     Section 7. Noncompetition, Noninterference and Confidentiality.

     (a) Special Acknowledgements of the Employee. The Employee
acknowledges that: (i) the services previously rendered and expected to be
render by the Employee to the Company are of an important character that
have and have had a unique value to the Company; (ii) the Employee
possesses relations, contacts, information and other know-how that would
permit the Employee to compete with the Company or any of its affiliates
and reduce the value of the Business and of the Company; (iii) the
restrictive covenants in this Section 7 and other terms of this Agreement
are reasonable in order to preserve the goodwill and other value of the
Business; (iv) the opportunity to purchase the Shares and receive any
options to purchase Common Shares is a special and unique opportunity; (v)
the Company has bargained for the benefit of such covenants and other terms
of this Agreement in connection with the offering of the Shares to the
Employee; (vi) the restrictive covenants contained in this Section 7 and
the other terms of this Agreement constitutes a material inducement to the
Company to sell the Shares to the Employee; (vii) the Employee had the
opportunity to be represented by and consult with legal counsel in this
matter; (viii) the restrictive covenants in this Section 7 are meant to be
in addition to, and not limited by or limiting of, any other restrictive
covenants by which the Employee is or many be bound; and (ix) the Employee
understands the terms of this Agreement, including (but not limited to) the
terms of the restrictive covenants in the Section 7, and the legal effects
thereof.

     (b) Noncompetition and Noninterference. While employed with the
Company or any of its affiliates and for a period of one year thereafter,
the Employee, individually or collectively with any other person or entity,
shall not:

     (i) without the prior written consent of the Company (which may
be withheld at the Company’s sole discretion), directly or indirectly
own an interest in, manage, operate, join, control, or participate in
the ownership, operation or control of, or be connected as a director,
officer, employee, partner, consultant or permit his name to be used
in connection with the following businesses or organizations that rent
or lease construction or construction-related equipment within the
United States, Canada and Mexico (collectively “the Territory”):
Caterpillar, United Rental, Sunbelt

8

 

Rentals and its parent Ashtead Group plc, NEFF Rental, Hertz, Volvo,
National Equipment Services and Maxim Crane Works or, in the
alternative, any business or organization not listed above that rents
or leases construction or construction-related equipment that has
gross revenues of $100 million or more, or has a total employee base
of 500 employees or more or that has plans to enter into the
construction-related equipment rental or leasing business in the
Territory;

     (ii) directly or indirectly call upon or solicit or divert or
take away from the Company or any of its affiliates (including by
divulging to any competitor or potential competitor of the Company)
any person, firm, corporation, or other entity who is a customer of
the Company or its affiliates and whom Executive had contact with
through any of his employment with the Company; or

     (iii) directly or indirectly solicit employment of any employee
of the Company or any employee of any affiliate of the Company for
employment with any entity that rents or leases construction or
construction-related equipment in the Territory.

     (c) Confidential Information. While employed with the Company and its
affiliates and for ten years thereafter, the Employee shall not at any time
use or disclose to any person, corporation, firm, partnership or other
entity whatsoever, or to any officer, director, stockholder, partner,
associate, employee, agent or representative of any thereof, any
confidential information or trade secrets of or relating to the Business or
the Company or any of its affiliates (“Confidential Information”).
Information relating to the Business, the Company or any of its affiliates
that becomes generally known to the public by reason other than disclosure
by the Employee or any other employee subject to a similar confidentiality
obligation shall not be considered confidential information under this
Section 7(c). If disclosure of any Confidential Information is requested or
required of the Employee under a subpoena, court order, statute, law, rule,
regulation or other similar requirement, the Employee shall (i) notify the
Company promptly in writing of such request so that the Company may seek an
appropriate protective order or other appropriate remedy, or waive
compliance with the provisions of this Agreement, (ii) cooperate fully with
the Company in its efforts to obtain such a protective order or other
appropriate remedy, and (iii) if no such protective order or other
appropriate remedy is obtained, furnish only that portion of the
information that counsel to the Employee advises that the Company is
required to disclose by law.

9

 

     (d) Enforcement and Remedies.

     (i) “Blue Pencil”. If any of the agreements set forth in this
Section 7 shall be held to be invalid or unenforceable, the remaining
parts thereof shall nevertheless continue to be valid and enforceable
as though the invalid or unenforceable parts had not been included
therein. In the event that any provision of this Section 7 relating to
the time period, geographic area, scope and/or subject matter shall be
declared by a court of competent jurisdiction to exceed the maximum
time period, geographic area, scope and/or subject matter such court
deems enforceable, such time period, geographic area, scope and/or
subject matter shall be deemed to become and thereafter be the maximum
time period, scope and/or subject matter that such court deems
enforceable, it being the intent and express agreement of the parties
that the terms of this Section 7 be enforced and interpreted in
accordance with the terms to the greatest extent possible.

     (ii) Injunctive Relief. The covenants and obligations of the
Employee with respect to noncompetition and noninterference,
confidentiality and other matters contained herein relate to special,
unique and extraordinary matters and that a violation of any of the
terms of such covenants and obligations will cause the Company
irreparable injury for which adequate remedies are not available at
law. Therefore, the Employee agrees that Company will be entitled to
an injunction, restraining order or such other equitable relief as a
court of competent jurisdiction may deem necessary or appropriate to
restrain the Employee from committing any violation of the covenants
and obligations referred to in this Section 7. Any such injunction may
be obtained without the necessity of posting a bond. These injunctive
remedies are cumulative and in addition to any other rights and
remedies the Parent may have at law or in equity, including, but not
limited to, the right to repurchase the Employee’s Shares for $0.10
per Share pursuant to Section 6(c).

     Section 8. “Tag-Along” Rights

     (a) Sale Notice. At least 30 days before any of the Investors (whether
acting alone or jointly with one or more of the other Investors)
consummates any sale of more than 30% of the Common Shares collectively
owned by the Investors as of the Closing Date to a Third-Party Buyer, the
Company will deliver a written notice (the “Sale Notice”) to the Employee.
The Sale Notice will disclose the material terms and conditions

10

 

of the proposed sale or transfer, including the number of Common Shares
that the prospective transferee is willing to purchase, the proposed
purchase price per share and the intended consummation date of such sale.

     (b) Right to Participate. The Employee may elect to participate in the
sale or other transfer described in the Sale Notice by giving written
notice to the applicable Investors and the Company within 15 days after the
Company has given the related Sale Notice to the Employee. If the Employee
elects to participate, the Employee will be entitled to sell in the
contemplated transaction, at the same price and on the same terms and
conditions as set forth in the Sale Notice, an amount of Shares equal to
the product of (i) the quotient determined by dividing (A) the percentage
of the Company’s then outstanding Common Shares represented by the Shares
then held by the Employee by (B) the aggregate percentage of the Company’s
then outstanding Common Shares represented by the Common Shares then held
by the Investor(s) participating in the sale or other transfer described in
the Sale Notice and all holders of Common Shares electing to participate in
such sale and (ii) the number of Common Shares the prospective transferee
has agreed to purchase in the contemplated transaction.

     (c) Certain Matters Relating to the Investors. The Company will use
its commercially reasonable best efforts to cause the Investors to conduct
any sale that is within the scope of this Section 8 in a manner consistent
with this Section 8. If the Company is not able to do so or fails to give
the Sale Notice to the Employee as prescribed in Section 8(a), the
Employee’s sole remedy shall be against the Company.

     (d) Expiration Upon a Public Offering. The provisions of this Section
8 shall terminate upon the consummation of a Public Offering.

     Section 9. “Drag-Along” Rights

     (a) Drag-Along Notice. If any of the Investors (whether acting alone
or jointly with one or more of the other Investors) intends to sell or
otherwise Transfer, or enter into an agreement to sell or otherwise
Transfer, for cash or other consideration, more than 30% of the Common
Shares collectively owned by the Investors as of the Closing Date to a
Third-Party Buyer and the applicable Investor(s) elects to exercise its
rights under this Section 9, the Company shall deliver written notice (a
“Drag-Along Notice”) to the Employee, which notice shall state (i) that the
Investor(s) wishes to exercise its rights under this Section 9 with respect
to such sale, (ii) the name and address of the Third-Party Buyer, (iii) the
per share amount and form of consideration the applicable Investor(s)
proposes to receive for its

11

 

Common Shares, (iv) the material terms and conditions of payment of such
consideration and all other material terms and conditions of such sale, and
(v) the anticipated time and place of the closing of the purchase and sale
(a “Drag-Along Closing”).

     (b) Conditions to Drag-Along. Upon delivery of a Drag-Along Notice,
the Employee shall have the obligation to sell and transfer to the
Third-Party Buyer at the Drag-Along Closing the percentage of the
Employee’s Shares equal to the percentage of the Common Shares owned by the
Investor(s) that are to be sold to the Third-Party Buyer (the “Applicable
Percentage”) on the same terms as the applicable Investor(s), but only if
such Investor(s) sells and transfers the Applicable Percentage of the
Investor’s Common Shares to the Third-Party Buyer at the Drag-Along
Closing.

     (c) Power of Attorney, Custodian, Etc. By entering into this Agreement
and purchasing the Shares, the Employee hereby appoints the applicable
Investor(s) and any Affiliates of such Investor(s) so designated by the
Investor(s) the Employee’s true and lawful attorney-in-fact and custodian,
with full power of substitution (the “Custodian”), and authorizes the
Custodian to take such actions as the Custodian may deem necessary or
appropriate to effect the sale and transfer of the Applicable Percentage of
the Employee’s Shares to the Third-Party Buyer, upon receipt of the
purchase price therefor at the Drag-Along Closing, free and clear of all
security interests, liens, claims, encumbrances, charges, options,
restrictions on transfer, proxies and voting and other agreements of
whatever nature, and to take such other action as may be necessary or
appropriate in connection with such sale or transfer, including consenting
to any amendments, waivers, modifications or supplements to the terms of
the sale (provided that the applicable Investor also so consents, and, to
the extent applicable, sells and transfers the Applicable Percentage of its
Common Shares on the same terms as so amended, waived, modified or
supplemented) and instructs the Secretary of the Company (or other person
holding any certificates for the Shares) to deliver to the Custodian
certificates representing the Applicable Percentage of the Employee’s
Shares, together with all necessary duly-executed stock powers. If so
requested by the applicable Investor(s) or the Company, the Employee will
confirm the preceding sentence in writing in form and substance reasonably
satisfactory to such Investor promptly upon receipt of a Drag-Along Notice
(and in any event no later than 10 days after receipt of the Drag-Along
Notice). Promptly after the Drag-Along Closing, the Custodian shall give
notice thereof to the Employee and shall remit to the Employee the net
proceeds of such sale (reduced by any amount required to be held in escrow

12

 

pursuant to the terms of the purchase and sale agreement and any other
expenses).

     (d) The Investors are Third-Party Beneficiaries; Remedies. The
Employee acknowledges and agrees that any of the Investors that takes
action pursuant to this Section 9 is an intended third-party beneficiary of
this Section 9, as if such Investor were a party to this Agreement
directly. Following a breach or a threatened breach by the Employee of the
provisions of this Section 9, the applicable Investor may obtain an
injunction granting it specific performance of the Employee’s obligations
under this Section 9. Whether or not the applicable Investor obtains such
an injunction, and whether or not the transaction with respect to which the
Drag-Along Notice relates is consummated, following such a breach or
threatened breach by the Employee the Company shall have the option to
purchase any or all of the Employee’s Shares at a purchase price per Share
equal to the lesser of the price at which the Employee purchased such
Shares from the Company or the per share consideration payable pursuant to
the Drag-Along Offer. The preceding sentence shall not limit the Company’s
or the Investors’ rights to recover damages (or the amount thereof) from
the Employee.

     (e) Expiration on a Public Market. The provisions of this Section 9
shall terminate and cease to have further effect upon the establishment of
the Public Market, provided that such termination shall not affect any
right to receive or seek damages or purchase Shares pursuant to Section
9(d).

     Section 10. Rights of First Refusal

     (a) Notice. At any time prior to a Public Offering, in addition to the
Transfer restrictions set forth in Section 4 and except as otherwise
expressly provided in this Agreement, the Employee may not Transfer any
Shares other than pursuant to a Qualified Offer and if the Employee desires
to accept a Qualified Offer, the Employee shall first give at least 60
days’ prior written notice to the Company and the Investors:

     (i) designating the number of Shares proposed to be Transferred
(the “Offered Shares”);

     (ii) naming the prospective acquiror of such Shares; and

     (iii) specifying the price at (the “Offer Price”) and terms upon
which (the “Offer Terms”) the Employee desires to Transfer such
Shares.

13

 

     (b) Right of the Company. During the 30-day period following the
Company’s receipt of the Employee’s notice pursuant to Section 10(a) (the
“First Refusal Period”), the Company shall have the right to purchase from
the Employee all or any portion of the Offered Shares, at the Offer Price
and on the Offer Terms, and any such purchase shall be settled at the time
and in the manner specified in Section 10(d) hereof. The Company shall use
its reasonable efforts to act as promptly as practicable following receipt
of the notice from the Employee to determine whether it shall elect to
exercise such right.

     (c) Right of the Investors. If the Company determines within the First
Refusal Period that it does not wish to exercise its right to purchase all
of the Offered Shares, the Investors shall have the right to purchase all
or any portion remaining of the Offered Shares specified in such notice, at
the Offer Price and on the Offer Terms, and any such purchase shall be
settled at the time and in the manner specified in Section 10(d) hereof.
The Investors must determine whether to exercise such right during the
period beginning on the earlier of (x) the end of the First Refusal Period
and (y) the date of receipt by the Investors of written notice that the
Company has elected not to exercise its rights under Section 10(b) and
ending 60 days after the Investor’s receipt of the Employee’s notice
pursuant to Section 10(a) (the “Second Refusal Period”).

     (d) Manner of Exercise. The rights provided hereunder shall be
exercised by written notice to the Employee given at any time during the
applicable period. If such right is exercised, the Employee may not sell
pursuant to the Qualified Offer any of the Shares that the Company or the
Investors have elected to purchase and the Company or the Investors, as the
case may be, shall deliver to the Employee cash, check or other
readily-available funds for the Offer Price, against delivery of
certificates or other instruments representing the Shares so purchased,
appropriately endorsed by the Employee, and free and clear of all security
interests, liens, claims, encumbrances, charges, etc. Notwithstanding the
foregoing, neither the Company nor the Investors, as the case may be, shall
deliver any cash, check or other readily-available funds for the Offer
Price to the Employee prior to the date which is six months and one day
from the date of the Employee’s acquisition of the Shares pursuant to this
Agreement.

     (e) Additional Requirements for Sale. Subject to Section 4, if neither
the Company nor the Investors shall have exercised its rights under this
Section 10, then the Employee may Transfer the Offered Shares to (but only
to) the intended purchaser named in his notice to the Company and the
Investors at the Offer Price and on the Offer Terms; provided that:

14

 

     (i) such Transfer must be consummated within 30 days following
the expiration of the Second Refusal Period; and

     (ii) the intended purchaser must first agree in writing in form
and substance satisfactory to the Company to make and be bound by the
representations and warranties set forth in Section 3(b), Section
3(e), Section 3(f), Section 3(g) and to agree to and be bound by the
covenants and other restrictions set forth in this Agreement
(including, but not limited to, Section 4, Section 8, Section 9,
10, Section 11 and Section 13) and such other covenants or
restrictions as the Company shall reasonably request (it being
understood that the Employee and any intended purchaser therefrom
shall not have any of the benefits provided for in Section 6).

Any purported Transfer in violation of this Section 10 shall be void ab
initio.

     (f) Allocation by Investors. The Employee acknowledges and agrees that
the Investors may allocate their rights to purchase any or all of the
Offered Shares within the Second Refusal Period, as among themselves, in
such manner as they, in their sole discretion, may agree from time to time.

15

 

     Section 11. Holdback Agreements. If the Company files a registration
statement under the Securities Act with respect to an underwritten public
offering of any shares of its capital stock, the Employee shall not effect any
public sale (including a sale under Rule 144 under the Securities Act or other
similar provision of applicable law) or distribution of any Common Shares, other
than as part of such underwritten public offering, during the 20 days prior to
and the 180 days after the effective date of such registration statement (or
such other period as may be generally applicable to or agreed by the Company’s
senior-most executives). If the Company files a prospectus in connection with a
takedown from a shelf registration statement, the Employee shall not effect any
public sale (including a sale under Rule 144 under the Securities Act or other
similar provision of applicable law) or distribution of any Common Shares, other
than as part of such offering, for 20 days prior to and 90 days after the date
the prospectus supplement is filed with the Securities and Exchange Commission
(or such other period as may be generally applicable to or agreed by the
Company’s senior-most executives).

     Section 12. Certain Definitions

     (a) As used in this Agreement, the following terms shall have the
meanings set forth below:

     “Affiliate” has the meaning given in the Stock Incentive Plan.

     “Agreement” means this Employee Stock Subscription Agreement, as
amended from time to time in accordance with the terms hereof.

     “Applicable Percentage” has the meaning given in Section 9(b).

     “Business” means the rental or leasing of construction-related or
similar equipment.

     “Board” has the meaning given in the Stock Incentive Plan.

     “Cause” has the meaning given in the Stock Incentive Plan.

     “Closing” has the meaning given in Section 2(a).

     “Closing
Date” means November 27, 2006.

     “Common Shares” means the common stock, par value U.S. $.01 per share,
of the Company.

16

 

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

     “Competitive Business” has the meaning given in Section 7(b)(i).

     “Confidential Information” has the meaning given in Section 7(c).

     “Custodian” has the meaning given in Section 9(c).

     “Determination Date” has the meaning given in Section 6(c).

     “Disability” has the meaning given in the Stock Incentive Plan.

     “Drag-Along Closing” has the meaning given in Section 9(a).

     “Drag-Along Notice” has the meaning given in Section 9(a).

     “Employee” means the purchaser of the Shares whose name is set forth
on the signature page of this Agreement; provided that following such
person’s death, the “Employee” shall be deemed to include such person’s
beneficiary or estate and following such person’s Disability, the
“Employee” shall be deemed to include any legal representative of such
person.

     “Exchange Act” means the United States Securities Exchange Act of
1934, 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 any such successor statute, and the rules and
regulations thereunder.

     “Fair Market Value” has the meaning given in the Stock Incentive Plan.

     “Financing Agreements” has the meaning given in Section 6(f).

     “First Refusal Period” has the meaning given in Section 10(b).

     “Investors” has the meaning given in the Stock Incentive Plan.

     “Investors’ Initial Holdings” means the number of Common Shares held
by the Investors as of the Closing Date plus any additional shares acquired
within twelve months of the Closing Date.

     “Offer Price” has the meaning given in Section 10(a).

17

 

     “Offer Terms” has the meaning given in Section 10(a).

     “Offered Shares” has the meaning given in Section 10(a).

     “Option” has the meaning given in the Stock Incentive Plan.

     “Option Period” has the meaning given in Section 6(a).

     “Person” means any natural person, firm, partnership, limited
liability company, association, corporation, company, trust, business
trust, governmental authority or other entity.

     “Public Market” shall be deemed to have been established at such time
as 30% of the Common Shares (on a fully diluted basis) has been sold to the
public pursuant to an effective registration statement under the Securities
Act, pursuant to Rule 144 or pursuant to a public offering outside the
United States.

     “Public Offering” has the meaning given in the Stock Incentive Plan.

     “Purchase Price” means the purchase price per Share determined in
accordance with Section 6(c).

     “Qualified Offer” means an offer to purchase Shares from a single
purchaser and which must be in writing and for cash or other
immediately-available funds, be irrevocable by its terms for at least 60
days and be a bona fide offer as determined in good faith by the Board or
the Compensation Committee thereof.

     “Retirement” means the Employee’s retirement from active service on or
after the Employee reaches normal retirement age.

     “Rule 144” means Rule 144 under the Securities Act (or any successor
provision thereto).

     “Sale Notice” has the meaning given in Section 8(a).

     “Second Refusal Period” has the meaning given in Section 10(c).

     “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
any such successor statute, and the rules and regulations thereunder.

18

 

     “Shares” has the meaning given in Section 1(a), and for purposes of
Section 4, Section 5, Section 7, Section 8, Section 9, Section 10, and
Section 11 it also includes Common Shares delivered as dividends in respect
of the Shares.

     “Stock Incentive Plan” means the Atlas Copco North America Inc. (to be
renamed RSC Holdings Inc.) Stock Incentive Plan adopted by the Board, as
amended from time to time.

     “Subsidiary” has the meaning given in the Stock Incentive Plan.

     “Third-Party Buyer” means any Person other than (i) the Company or any
of its Subsidiaries, (ii) any employee benefit plan of the Company or any
of its Subsidiaries, (iii) the Investors, (iv) any Affiliates of any of the
foregoing, or (v) any investment fund or vehicle, other than the Investors,
managed, sponsored or advised by the Investors.

     “Transfer” means any sale, assignment, transfer, pledge, encumbrance,
or other direct or indirect disposition (including a hedge or other
derivative transaction).

     “Unforeseen Personal Hardship” means financial hardship arising from
(i) extraordinary medical expenses or other expenses directly related to
illness or disability of the Employee, a member of the Employee’s immediate
family or one of the Employee’s parents or (ii) payments necessary or
required to prevent the eviction of the Employee from the Employee’s
principal residence or foreclosure on the mortgage on that residence.

     Section 13. Miscellaneous

     (a) 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 a 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 Stock Incentive Plan.

     (b) Unforeseen Personal Hardship. If the Employee, prior to a Public
Offering and still in the employment of the Company, experiences Unforeseen
Personal Hardship, the Board will carefully consider any request by the
Employee that the Company repurchase the Employee’s Shares at the Purchase
Price, but the Company shall have no obligation to do so.

19

 

     (c) Notices. All notices and other communications required or
permitted to be given under this Agreement shall be in 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, any
of the Investors or the Employee, as the case may be, at the following
addresses or to such other address as the Company, the Investors or the
Employee, as the case may be, shall specify by notice to the others:

     (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

with copies (which shall not constitute notice) to the
Persons listed in clause (iv) below).

     (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.

20

 

     (iii) if to any Investor, to the Persons listed in clause (iv)
below:

     (iv) Copies of any notice or other communication given under this
Agreement shall also be given to:

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)

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

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

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.

     (d) 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. Except as otherwise provided herein with respect to
the Investors, 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.

21

 

     (e) Waiver; Amendment.

     (i) Waiver. Any party hereto 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, provided that any waiver of the
provisions of Section 4 through and including Section 11 or this
Section 13(e) must be consented to in writing by the Investors. Except
as provided in the preceding sentence, no action taken pursuant to
this Agreement, including, but not limited to, any investigation by or
on behalf of any party, shall be deemed to constitute a waiver by the
party taking such action of compliance with any representations,
warranties, covenants or agreements contained herein. The waiver by
any party hereto 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 to exercise any right or privilege
hereunder shall be deemed a waiver of such party’s rights or
privileges hereunder or shall be deemed a waiver of such party’s
rights to exercise the same at any subsequent time or times hereunder.

     (ii) Amendment. This Agreement may be amended, modified or
supplemented only by a written instrument executed by the Employee and
the Company, provided that the provisions of Section 4 through Section
11 and this Section 13 may be amended by vote of a majority (by number
of Common Shares) of the Employees who hold Common Shares purchased
pursuant to a stock subscription agreement having comparable
provisions; provided, further, that any amendment adversely affecting
the rights of the Investors hereunder must be consented to by the
Investors.

     (f) 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 parties, provided that any Investor may assign from time to
time all or any portion of its rights under this Agreement, to one or more
persons or other entities designated by it and the Company may assign this
Agreement to a person or other entity in connection with the transfer of
all or substantially all of the assets of the Company to such person or
entity pursuant to a merger or other transaction.

22

 

     (g) 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, except to the extent the laws of another jurisdiction
specifically and mandatorily apply.

     (h) Waiver of Jury Trial. Each party hereby waives, to the fullest
extent permitted by applicable law, any right it may have to a trial by
jury in respect of any suit, action or proceeding arising out of this
Agreement or any transaction contemplated hereby. Each party (i) certifies
that no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in
the event of litigation, seek to enforce the foregoing waiver and (ii)
acknowledges that it and the other parties have been induced to enter into
the Agreement by, among other things, the mutual waivers and certifications
in this Section 13(h).

     (i) 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.

     (j) 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.

     (k) Jurisdiction. The parties hereto hereby irrevocably submit and
consent to the nonexclusive jurisdiction of the State and Federal Courts
(the “Courts”) located in the Borough of Manhattan in The City of New York
in the State of New York with respect to any action or proceeding arising
out of this Agreement or any matter arising therefrom or relating thereto.
In any such action or proceeding, each party hereto waives personal service
of the summons and complaint or other process and papers therein and agrees
that the service thereof may be made by mail directed to such party at the
address for such party provided herein, service to be deemed complete 7
days after mailing, or as permitted under the rules of either of the
Courts.

23

 

     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:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	(Name)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	as Attorney-in-Fact	 	 
	 

	 	Name:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address of the Employee:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Address)	 	 
	 
	 	 	 	 	 	 
	Total Number of Common Shares to be
Purchased:

	 	(Shares)	 	 
	 
	 	 	 	 	 	 
	Per Share Price	 	 $244.25 	 	 
	 
	 	 	 	 	 	 
	Total Purchase Price:	 	(Investment)	 	 

24

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