Document:

Offer Letter with George Moore

 Exhibit 10.18 
 Rexnord Industries, LLC 
 Corporate Headquarters 
 4701
West Greenfield Ave 
 Milwaukee, Wisconsin 53214 
 PERSONAL
AND CONFIDENTIAL 
 July 27, 2006 
 Mr. George
Moore 
 4104 Oakwood Lane 
 W. Des Moines, IA 50265 

Dear George, 
 On behalf of Rexnord Industries, LLC., I am
extremely pleased to offer you the position of Chief Financial Officer, effective on a mutually agreed upon date and based in Milwaukee. In this capacity, you will report directly to Bob Hitt. Below you will find outlined the terms of this offer.

 SALARY 
 This is an exempt position. Your bi-weekly salary will be $15,384.62 (which is $400,000.12 per annum) for the first year and $10,576.93 (which is $275,000.18 annualized) for the second year.1 
 REXNORD MANAGEMENT INCENTIVE PLAN 
 You will be nominated to participate in the Rexnord Management Incentive Plan for fiscal year 2006/2007 at a target bonus of 50%. Your participation in
the plan commences on date of hire. A copy of the plan is attached for your perusal. 
 REXNORD SHARE OPTION PLAN 
 You have been selected to participate in the RBS Global, Inc. Stock Option Plan. You will receive a stock option award of 34,606 options, at an exercise
price of $47.50 a share. These options will be awarded through Cypress Group, LLC This benefit is designed to retain and reward executives for value creation. All stock option awards are subject to Board approval. Please find attached a brief
description of this plan. 
 SAVINGS PLAN & RETIREMENT PROGRAM 
 Effective date of hire, you will be able to participate in the Rexnord 401 K Plan. Rexnord will match 50% of the first 8% of employee contributions. Also, a discretionary Company contribution equal to 3% of an
employee’s pay will be contributed on a quarterly basis. 
  
  

	 1
	 The parties subsequently agreed to delay the implementation of the reduction of Mr. Moore’s base salary for
his second year of employment. 

  

 1 

 EMPLOYEE HEALTH AND INSURANCE PLANS 
 You will be eligible for the following comprehensive health and insurance plans, which are detailed in the enclosed information. These benefits will become effective the first day of the month following your date of
hire. 
  

	 	•	 	 The Rexnord Medical, Dental and Vision Plans. 

  

	 	•	 	 Noncontributory life insured at 1 times your base pay. You may purchase, at attractive rates, additional coverage including dependent life.

  

	 	•	 	 Long-term and short-term disability insurance. 

 TEMPORARY LIVING EXPENSES 
 The company will reimburse your temporary living expenses. This will include transportation to
and from Milwaukee and temporary housing costs. 
 VACATION 
 You will be eligible for four weeks of vacation per annum, and these may not be carried over from one year to the next. 
 COMPANY VEHICLE 
 You will be eligible to receive a company leased vehicle equal to $42,500 or you may choose an automobile
allowance equal to $870 per month. This allowance typically includes insurance, maintenance, gas and leasing costs. 
 CONDITIONS OF THIS OFFER

 This offer is a description of employment and should not be construed as a contract, agreement or commitment of employment by Rexnord
Industries, Inc. for any particular period of time or to limit in any way the right of Rexnord Industries, Inc., or yourself to terminate your employment at will. This agreement supersedes and rescinds any and all employment agreements with Rexnord
Industries, Inc., whether verbal, written or otherwise expressed or implied. Termination of employment shall not relieve you of any obligations contained in the attached Confidentiality Agreement, which continues in force and effect after the
termination of your employment. 
 In order to comply with the Immigration Reform Control Act of 1986, Rexnord, Industries, Inc. is required
to determine your eligibility to work in the United States. Therefore, please provide identification sufficient to establish your authorization status. This identification may include, but is not limited to the following: a valid United States
Passport, alien registration card with photograph, or any two (2) of the following: original 
  

 2 

 Social Security card, valid driver’s license or state ID card per the Employment Eligibility
Verification (1-9) form. If you have additional questions regarding acceptable documentation for Employment Eligibility Verification, you can visit the Department of Homeland Security website at
http://uscis.gov/graphics/formsfee/forms/files/i-9.pdf. Further, it is our policy to request an original Social Security card from all new hires. If you are unable to locate your Social Security card, you can contact the Social Security
Administration to obtain a new copy. We will accept the receipt they provide you until your new card arrives. 
 This offer is contingent
upon the following: 
  

	 	•	 	 A satisfactory drug test result to be completed within 48 hours of receipt of this offer. 

  

	 	•	 	 You not having entered into a signed agreement with a previous employer that contains a non-competition clause that might affect your ability to accept employment
with Rexnord, Industries, Inc. If you have entered into such an agreement, you need to forward a copy of the agreement to my attention prior to any further action on this offer. 

  

	 	•	 	 Completion of the Confidentiality and Non-Compete Agreement. This document must be endorsed as a condition of employment before becoming employed.

 George, if you have any questions or need clarification please contact me. All of us at Rexnord look forward to the contribution we know
you will make to our organization. 1 feel certain that our organization will offer you the level of challenge needed to provide you with a rewarding career. 
 Please sign in the space below and return to myself, within five business days of receipt of this offer, a signed original indicating your acceptance. 
  

	
	Sincerely,
	
	 /s/ Jim Strahley

	Jim Strahley
	Vice President, Human Resources

 Enclosures: Confidentiality Agreement; Benefits Overview, Management Incentive Plan 
 Offer accepted: 
  

	
	 /s/ George Moore

	George Moore
	
	 September 5, 2006

	Date

  

 3Rexnord LLC Fiscal Year 2009 Consolidated Management Incentive Plan

 Exhibit 10.19 
 FY 2009 Management Incentive Compensation Plan (MICP) 
 Consolidated Plan 
 Issued: April 2008 
 Plan Name: 
 Rexnord LLC Management Incentive Compensation Plan (MICP) 
 Plan
Objectives: 
 Establish a meaningful variable compensation component of an attractive pay-for-performance total cash compensation program designed to
support the achievement of Outstanding Strategic, Financial and Operational Performance 
 Plan Term: 
 The plan commences on the first day of the fiscal year and ends on the last day of the fiscal year 
 Plan Eligibility: 
 As approved by the Rexnord Management Compensation Committee 
 Target Bonus Levels: 
 Determined based on a mix of level-of-impact
toward the achievement of Company objectives, and sound pay-for-performance total cash compensation guidelines 
 Performance Measures: 
  

	•	 	 Budgeted EBITDA (Earnings before interest, taxes, depreciation and amortization) 

  

	•	 	 Debt Reduction or Divisional Cash Flow 

  

	•	 	 Non-financial Objectives (Personal Performance Factor) 

 Plan Design: 
  

	•	 	 Payout Determined by Formula: 

  

																	
	 Year end
 Base
 Salary
	  	X	  	Individual Target Bonus %	  	X	  	Financial Factor*	  	X	  	Personal Performance Factor	  	=	  	 Bonus
 Payout

  

	*	Note – Financial Factor may be determined by a “mix” of more than one Organizational Financial Factor (percentage weighted – example: 80%
Division + 20% Corporate) 

  

	•	 	 Performance Criteria: 

  

					
	 •         TEAM Achievements
	  	=	  	Financial Factor
			
	 •         Individual Achievements (AIP’s)
	  	=	  	Personal Performance Factor

 Financial Factor: 
  

	•	 	 Based on EBITDA and Debt Reduction or Divisional Cash Flow 

  
  

	*	Note – % weighting of EBITDA and Debt Reduction will be established annually by the Compensation Committee of the Board of Directors

	•	 	 Financial Thresholds: In order to align management and shareholder objectives, the minimum threshold for either EBITDA and Debt Reduction or Divisional Cash
Flow must be achieved in order to trigger a potential bonus payment for that component under the plan (“The Cliff”). 

  

					
	 •        The Cliff
	  	=	  	90% of Target*

  
  

	*	Note – Either one of the financial targets may meet the 90% Cliff to generate potential payment for that component. The Compensation Committee of the Board of
Directors may in extraordinary circumstances adjust the cliff up or down. Plan participants will be appropriately notified. 

  

					
	 •        Upper Limit
	  	=	  	None (No Cap)

	•	 	 Performance Range: 

  

																									
	  	  	90%
of
Target	 	 	100%
of
Target	 	 	105%
of
Target	 	 	110%
of
Target	 	 	*115%
of
Target	 	 	120%
of
Target	 	 	125%
of
Target	 	 	130%
or > of
Target	 
	 Performance of EBITDA & Debt Reduction or Division Cash Flow = Financial Factor
	  	50	%	 	100	%	 	112.5	%	 	125	%	 	150	%	 	175	%	 	200	%	 	225
 =/>
	%
  

  

	*	Note: For each additional 5% increase in the percent of Bonus Plan Achievement over 115%, the participant will receive an increase of 25% of the percentage of the
target bonus. 

	**	Note: Any business segment with financial targets that are either negative or under a million dollars will be treated outside the payout matrix above. The payout
methodology will be developed and agreed upon between the management team and finance and must be approved by the Rexnord Management Compensation Committee. 

  

	•	 	 Financial Factor Calculation Example: 

  

													
	 	  	% of
Financial
Factor
weighting	 	 	%
Achieved*	 	 	Payment via
Payout
Slope	 	 	Weighted
Payout	 
	 EBITDA
	  	50	%	 	110	%	 	125	%	 	62.5	%
	 Divisional Cash Flow
	  	50	%	 	97	%	 	85	%	 	42.5	%
	Financial Factor Total = 105.0%	 

  

	*	Note: Interpolation will be used for performance levels between each listed percent of target achieved. 

  

	•	 	 Payout Pool – The payout pool will be established by calculating all the eligible employees target bonus amounts multiplied by the year-end financial results.
Once the eligible payout pool is established, the AIP’s will be graded and applied against the financial pool. No pool should exceed 100% of the calculated financial results for that business group without prior approval from the CEO. The pool
will be calculated at the highest business unit segment (example: at BCG level) and will be reviewed and approved by the appropriate business segment leader. 

  

																				
	 Year End
 Base Salary
 (as of 3/31/XX)
	 	Individual
Target
Bonus %	 	 	Eligible Earnings	 	Financial
Factor	 	 	Eligible
Payout Pool	 	Estimated
AIP %’s	 	 	Estimated
AIP Payouts
	$	115,000	 	15	%	 	$	17,250	 	105	%	 	$	18,112.5	 	97	%	 	$	17,569.13
	$	90,000	 	10	%	 	$	9,000	 	105	%	 	$	9,450	 	105	%	 	$	9,993.37
	$	145,000	 	25	%	 	$	36,250	 	105	%	 	$	38,062.5	 	100	%	 	$	38,062.5
			 			 	 	Total Payout Pool =	 			 	$	65,625	 			 	$	65,625

 Personal Performance Factor 
  

	•	 	 Based on Individual Annual Improvement Priorities (AIP’s) 

  

	 	•	 	 Reinforce Cross-Functional / Business Teamwork 

  

	 	•	 	 Differentiate for Performance among team/MIC Participants 

  

	•	 	 Range 

  

					
	0--------------------------------------------- 1.0 -------------------------------------1.5
	         Unacceptable	  	Meets Expectations	  	Outstanding                    

  

	•	 	 Focus – generally no more than five (5) personal objectives which: 

  

	 	•	 	 Generally Tie to Strategy Deployment Objectives 

  

	 	•	 	 Are Aggressive 

  

	 	•	 	 Are Measurable 

  

	 	•	 	 Are Critical to Business Success 

  

	•	 	 Annual Payout Calculation Example: 

  

																
	 Year End
 Base Salary
 (as of 3/31/XX)
	 	Individual
Target Bonus %	 	 	Eligible
Earnings	 	Financial
Factor	 	 	Personal
Performance
Factor (AIP’s)	 	Bonus
Payout
	$	115,000	 	15	%	 	$	17,250	 	105	%	 	1.15	 	$	20,829

 Plan Guidelines: 
  

	•	 	 The Compensation Committee of the Board of Directors reviews and approves year-end financial results and aggregate final plan payments 

 

	•	 	 The Rexnord Management Compensation Committee is designated to administer the plan including but not limited to: 

  

	 	•	 	 Plan Participation 

  

	 	•	 	 Plan Design & Continuation 

  

	 	•	 	 Payout Calculations and Timing 

  

	 	•	 	 Applying discretionary management judgment as appropriate based on specific business situations or individual considerations 

  

	•	 	 Plan participants must be employed by the company on the date of payment in order to qualify for payout (normally June) 

  

	 	•	 	 Exceptions due to retirement, disability, involuntary termination without cause, or death will be at the sole discretion of the Rexnord Management Compensation
Committee 

  

	•	 	 Partial Year participants will normally be eligible for a payment on a pro rata amount calculated at a rate of 1/12 of the annual amount for each complete calendar
month 

  

	•	 	 Where a promotion or transfer occurs during the Plan year, the individual will receive a pro-rated award based on time and salary in the multiple assignments

  

	 	•	 	 Any alternative basis for calculation must be approved by the Rexnord Management Compensation Committee 

	•	 	 Each Plan Participant should receive written notification of the following plan details at the beginning of each fiscal year: 

  

	 	•	 	 Financial Factor “Mix” 

  

	 	•	 	 Applicable EBITDA and Debt Reduction or Divisional Cash Flow Targets for the level of the organization under which they will participate

  

	 	•	 	 % Weighting of EBITDA & Debt Reduction or Divisional Cash Flow in calculating Financial Factor 

  

	 	•	 	 Guidelines for Establishing Participant’s Annual Improvement Priorities 

  

	•	 	 Bonus amounts under this plan are not considered earned and payable to the participant until such amounts have been approved by the Rexnord Management Compensation
Committee. 

  

	•	 	 The bonus will be paid as soon as practical after the fully audited annual results of the Company have been announced (normally June). The bonus will be paid in
cash. 

  

	•	 	 The participant will be held liable for any personal tax due or other statutory payments due on any part of the bonus. Bonus payments may be treated for pensionable
purposes in line with pension plan rules 

  

	•	 	 Any “windfall” impacts, either adverse or positive, will be excluded from the calculations. The decision of the Rexnord Management Compensation Committee
as to whether or not an item is categorized as “windfall” will be final. 

 Key Terms 
 The following are some important terms to know when reading about the MICP: 
  

	•	 	 AIP’s (Annual Improvement Priorities) – Strategic Business Priorities set each year by the executive management team and cascaded throughout the
organization. 

  

	•	 	 Company – Rexnord LLC and its subsidiaries 

  

	 •
	 	 Eligible Wages – Annual Base Salary in effect on the last day of the plan year, usually March 31st 

  

	•	 	 EBITDA – For a given bonus fiscal year shall mean consolidated earnings before interest, taxes, depreciation and amortization.

  

	•	 	 Divisional Cash Flow – As defined in the current financial reporting system. 

  

	•	 	 On Time Delivery (OTD) – Number of lines shipped on time (to customer want date) divided by number of lines shipped.

  

	•	 	 Payout Pool – The payout pool for each business is determined by the total sum of eligible participant’s bonus payments at par multiplied by the
actual year-end financial results. 

	•	 	 Pro-ration – For any employee who is in their position less than 12 consecutive months their bonus award will be pro-rated accordingly. Pro-ration will
consist of calculating Eligible Wages times Target Incentive Percent, divided by 12, multiplied by eligible months in position. 

  

	•	 	 Rexnord Management Compensation Committee – Committee consisting of the Chief Executive Officer, the Chief Financial Officer, VP Human Resources and the
VP of Compensation, Benefits & HRIS who is responsible for the day-to-day administration of the plan. 

  

	•	 	 Target Incentive Percent – The % of incentive award a participant is eligible to earn each year. This target is based upon current market data and
employee’s position with the Company. 

  

	•	 	 Rexnord Compensation Committee of the Board – The Compensation Committee established by the Board of Directors of RBS Global, Inc.

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