Document:

Form of Restricted Stock Unit Award Agreement

 Exhibit 10.53 
 PHARMERICA CORPORATION 
 PharMerica Corporation 2007
Omnibus Incentive Plan, As Amended 
 Restricted Stock Unit Award Agreement (2009) 
 This EXECUTIVE RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Agreement”), granted under the PharMerica Corporation 2007
Omnibus Incentive Plan, as amended (the “Plan”) is effective as of [                    ] and is made between PharMerica
Corporation, a Delaware corporation (the “Company”) and [                    ] (the “Recipient”). 
 Preliminary Statements 
 WHEREAS, the Company has determined that it is desirable and in its best interests to grant to the Recipient restricted stock units subject to the vesting and other conditions set forth herein, in
order to provide the Recipient with a significant interest in the Company’s growth so that the Recipient will have a greater incentive to perform at the highest level and further the interests of the Company and the shareholders of the Company
(the “Award”); and 
 WHEREAS, any capitalized term not herein defined shall have the meaning as set forth in
the Plan. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein: 
 1. Grant of Restricted Stock Units. On the terms and conditions of this Agreement and the Plan, the Committee grants to the
Recipient a restricted stock unit award (the “Award”) which, if earned based on the vesting schedule in Section 2 below, shall be payable in shares of the common stock of the Company (the “Stock”). The number of restricted
stock units to be issued pursuant to the Award is [                    ] (the “Restricted Stock Units”). The date of grant of the
Restricted Stock Units is [            ] (the “Grant Date”). 
 The Recipient’s right, if any, to continue to be employed by the Company will not be enlarged or otherwise affected by the receipt of this Award and the receipt of this Award will not in any way restrict the right of the Company to
terminate the Recipient’s employment at any time. 
 2. Vesting of the Restricted Stock Units. Except as
provided in Section 3 below, the Restricted Stock Units shall become vested in accordance with the following schedule, provided that the Recipient remains in the continuous employment of the Company from the date hereof through the Vesting
Dates set forth below: 
  

						
	 Vesting Date
	  	No. of Units Vested	 	Total Percentage of Award Vested	 
	 1st Anniversary of Grant Date
	  	[        ]	 	50	% 
			
	 2nd Anniversary of Grant Date
	  	[        ]	 	100	% 

 Except as set forth in Section 3 below, there shall be no proportional vesting prior to a Vesting Date;
all vesting shall occur only on the Vesting Dates set forth above. 
 3. Acceleration of Vesting of the Award.
Notwithstanding Section 2 above, upon the occurrence of any of the following events, the Recipient shall become either fully vested or vested in a pro-rata portion of the Award as set forth in this Section 3. 
 (a) Full Acceleration of Vesting due to Death or Disability. Upon the termination of the Recipient’s employment with the
Company by reason of the Recipient’s death or disability (within the meaning of Section 409A), the Award shall become fully vested as of the date of the Recipient’s termination of employment. 
 (b) Full Acceleration of Vesting due to Change in Control Where Award Not Assumed or Replaced. Upon a Change in Control, and provided
that (i) Company or the successor of the Company does not assume or replace this Award with an equity or cash award of equal or greater value in connection with such Change in Control and (ii) the Recipient has been continuously employed
by the Company from the date hereof through such Change in Control, the Award shall become fully vested as of the date of such Change in Control. 
 (c) Full Acceleration of Vesting due to Termination in Connection with Change in Control Where Award is Assumed or Replaced. Upon the termination of the Recipient’s employment with the Company
if, within one (1) year following a Change in Control where this Award is assumed or replaced by the Company or the successor to the Company, and (i) the Recipient’s employment is terminated by the Company without “Cause”
(as defined in Section 3(e)(ii) below) or (ii) the Recipient terminates employment for “Good Reason” (as defined in Section 3(e)(i) below), and provided that the Recipient executes a non-revocable written release in the form
provided by the Company or its successors, the Award shall become fully vested as of the date of the Recipient’s termination of Employment. 
 (d) Pro-Rata Acceleration of Vesting Upon Termination Without Cause or For Good Reason. Upon the termination of the Recipient’s employment with the Company by the Company without Cause or the
Recipient’s termination of his employment for Good Reason and provided that the Recipient executes a non-revocable written release in the form provided by the Company or its successors, the Award shall become vested on a pro-rata basis as set
forth in this Section 3(d). Under this Section 3(d), the number of Restricted Stock Units pursuant to the Award that shall be paid upon the Recipient’s termination of employment is the number of Restricted Stock Units as if the
Recipient were still employed on the Vesting Date, multiplied by a fraction; the numerator of which is the total number of complete months worked by the Recipient during the vesting period, and the denominator of which is 24, the total number of
months in the vesting period. 
  

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 (e) Definitions. For purposes hereof, the following definitions shall apply:

 (i) “Good Reason” shall mean the occurrence of one or more of the conditions in (A), (B) or (C) below:

 (A) A reduction of the Recipient’s salary other than (i) a reduction based on the Company’s financial
performance, or (ii) a reduction made to the salaries provided to all or most of the other management or executive employees of the Company with similar responsibilities, positions, compensation or other criteria as determined by the Committee
in good faith; 
 (B) A significant change in the Recipient’s responsibilities and/or duties which constitutes, when
compared to the Recipient’s responsibilities and/or duties before the Change in Control, a demotion; or a material loss of title or office; or 
 (C) The relocation of the offices at which the Recipient is principally employed as of the Change in Control to a location more than fifty (50) miles from such offices, which relocation is not
approved by the Recipient. 
 (ii) “Cause” means: 
 (A) Any willful, material violation of any law or regulation applicable to the business of the Company; 
 (B) Conviction for, or guilty plea to, a felony or a crime involving moral turpitude, or any willful perpetration of a common law fraud;

 (C) Commission of any act of personal dishonesty which involves personal profit in connection with the Company; 

(D) Intentional wrongful disclosure of confidential information of the Company; 
 (E) Intentional wrongful engagement in any competitive activity; 
 (F) The willful and continued failure or refusal to perform the material duties required of the Recipient as an employee, officer, director
or consultant of the Company (other than as a result of disability); 
 (G) Disregard of the policies of the Company so as to
cause material loss, damage or injury to the property, reputation or employees of the Company; 
 (H) Ongoing alcohol/drug
addiction and a failure by the Recipient to successfully complete a recovery program; or 
  

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 (I) Any other misconduct by the Recipient which is materially injurious to the financial
condition or business reputation of, or is otherwise materially injurious to, the Company. 
 (f) Notwithstanding the
foregoing, the Committee, in its sole and absolute discretion, may accelerate all or any portion of the vesting of the Restricted Stock Units at any time. 
 4. Forfeiture of the Award. Subject to Section 3, any portion of the Award that remains unvested upon the Recipient’s termination of employment shall automatically be forfeited on
the date that the Recipient ceases to be employed by the Company. 
 5. Payment of Award. 
 (a) Payment of the Award shall be made on a date as soon as administratively practicable following the completion of the vesting
period, but in no event later than March 15, of the year in which the final Vesting Date occurs. 
 (b) Payment of
the Award shall be in the form of whole shares of Stock only. 
 6. Dividend Equivalent Rights. With respect to
the Restricted Stock Units awarded to the Recipient pursuant to this Agreement, during the vesting period set forth in Section 2 hereof, the Recipient shall also be entitled to receive a number of restricted stock units (“Dividend
Equivalent Stock Units”) equal to (a) (i) the number of Restricted Stock Units earned by the Recipient under Sections 2 and/or 3 (as applicable) multiplied by (ii) the cumulative amount of cash dividends paid by the Company that
the Recipient would have received had he owned the earned Restricted Stock Units on each dividend record date through the Vesting Date, divided by (b) the closing price of the Stock on the Vesting Date. Dividend Equivalent Stock Units granted
under this Section 6 shall vest based on the vesting schedule set forth in Section 2 hereof, provided that for the purposes of such vesting schedule, the Dividend Equivalent Stock Units shall be deemed to have been granted as of the Grant
Date. 
 7. Tax Payment. 
 (a) At such time as the Recipient is entered as the stockholder of record with respect to the shares of Stock paid out with respect
to the Restricted Stock Units earned pursuant to this Agreement (including the Dividend Equivalent Stock Units granted pursuant to Section 6 herein), the Recipient (or his/her personal representative) shall deliver to the Company, within ten
(10) days after the occurrence of such registration specified above (or in the event of death, within ten (10) days of the appointment of the personal representative) (a “Payment Date”), (i) either a check payable to the
Company in the amount of all withholding tax obligations (whether federal, state, local or foreign income or social insurance tax), imposed on the Recipient and the Company by reason of the payment with respect to the Restricted Stock Units, or a
withholding election form to be provided by the Company upon request by the Recipient (or personal representative), and (ii) Recipient’s execution of a written “Agreement to Protect Company Assets” in a form acceptable to the
Company, unless Recipient has previously executed and delivered such an agreement to the satisfaction of the Company. 
  

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 (b) In the event the Recipient or his personal representative elects to satisfy the
withholding obligation by executing the withholding election form, the actual number of shares of Stock to be paid to the Recipient shall be reduced by the smallest number of whole shares of Stock which, when multiplied by the Fair Market Value of
the Stock on the Payment Date, is sufficient to satisfy the amount of the withholding tax obligations imposed on the Company by reason of the Recipient being recorded as the stockholder of record of the shares of Stock. In the event that the
Recipient fails to tender either the required check or withholding election, the Recipient shall be deemed to have elected and executed the withholding election form. 
 8. Effect of Changes in Capitalization or Change in Control. 
 (a) Changes in Stock. If the outstanding shares of Stock are increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any recapitalization,
reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the
Company occurring after the date the Award is granted, then, in the Board’s discretion, a proportional and appropriate adjustment may be made by the Board in the number and kind of shares subject to the Award, so that the proportional interest
of the Recipient immediately following such event shall, to the extent practicable, be the same as immediately prior to such event. In the event of any distribution to the Company’s stockholders of securities of any other entity or other assets
(other than dividends payable in cash or stock of the Company) without receipt of consideration by the Company, the Board shall, in such manner as it deems appropriate, adjust the number and kind of shares subject to the Award to reflect such
distribution. 
 (b) Reorganization in Which the Company Is the Surviving Company. Subject to 8(c) below, if the Company
shall be the surviving Company in any reorganization, merger, or consolidation of the Company with one or more other companies or other entities, the Award shall pertain to and apply to the securities to which a holder of the number of shares of
Stock subject to the Award would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportional adjustment of the Award, as may be applicable so that the aggregate value of the Award
thereafter shall be the same as the aggregate value of the Award immediately before such reorganization, merger, or consolidation. 
 (c) Change in Control. In the event of a Change in Control, the Board may (i) make provisions in connection with such transaction for the continuation of the Award; (ii) reach an agreement with the acquiring or surviving
entity that the acquiring or surviving entity will assume the obligation of the Company under the Award; (iii) reach an agreement with the acquiring or surviving entity that the acquiring or surviving entity will convert the Award into an award
of at least equal value, determined as of the date of the transaction, to purchase stock of the acquiring or surviving entity; or (iv) terminate the Award effective upon the date of the applicable transaction and either make, within sixty
(60) days after the date of the applicable transaction, a cash payment to the Recipient equal to product of the number of Restricted Stock Units subject to the Award and the Fair Market Value, as of the date of the applicable transaction, of a
share of Stock; provided, however, that the Board determines that any such modification does not have a substantial adverse economic impact on the Recipient as determined at the time of such modification. 
  

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 9. General Restrictions. The Company shall not be required to sell or issue
any shares of Stock under the Award if the sale or issuance of such shares would constitute a violation by the Recipient or by the Company of any provision of any law or regulation of any governmental authority, including without limitation any
federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration, or qualification of any shares of Stock subject to the Award upon any securities exchange or under any
state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares of Stock, the Award may not be exercised in whole or in part
unless such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the
Award. Specifically in connection with the Securities Act of 1933 (as now in effect or as hereafter amended), unless a registration statement under such Act is in effect with respect to the shares of Stock covered by the Award, the Company shall not
be required to sell or issue such shares unless the Company has received evidence satisfactory to it that the holder of the Award may acquire such shares pursuant to an exemption from registration under such Act. Any determination in this connection
by the Company shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act of 1933 (as now in effect or as hereafter amended). The Company
shall not be obligated to take any affirmative action in order to cause the issuance of shares of Stock pursuant to the Award to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the
requirement that the Award shall not be granted or paid unless and until the shares of Stock covered by the Award are registered or are subject to an available exemption from registration, the grant or payment of the Award (under circumstances in
which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
 10. Restrictions On Transfer. Other than by will or under the laws of descent and distribution, the Recipient shall not have the right to make or permit to occur any transfer, pledge or
hypothecation of all or any portion of any unvested portion of the Award, whether outright or as security, with or without consideration, voluntary or involuntary. Any such transfer, pledge or hypothecation not made in accordance with this Agreement
shall be deemed null and void. 
 11. Interpretation of this Agreement. All decisions and interpretations made by
the Committee or the Board with regard to any question arising under this Agreement shall be final, binding and conclusive on the Company and the Recipient and any other person entitled to receive the benefits of the Award as provided for herein.

 12. Governing Law. The validity, interpretation and enforcement of this Agreement are governed in all respects
by the laws of the State of Delaware, without giving effect to its conflict of laws principles, and by the laws of the United States of America. 
 13. Binding Effect. Subject to all restrictions provided for in this Agreement and by applicable law relating to assignment and transfer of this Agreement and the Award provided for herein,
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and assigns. 
  

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 14. Notice. Any notice hereunder by the Recipient to the Company shall be in
writing and shall be deemed duly given if mailed or delivered to the Company at its principal office, addressed to the attention of the Board, or if so mailed or delivered to such other address as the Company may hereafter designate by notice to the
Recipient. Any notice hereunder by the Company to the Recipient shall be in writing and shall be deemed duly given if mailed or delivered to the Recipient at the address specified below by the Recipient for such purpose, or if so mailed or delivered
to such other address as the Recipient may hereafter designate by written notice given to the Company. 
 15.
Severability. In the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, the same shall not invalidate or
otherwise affect any other provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein. 
 16. Effectiveness of Agreement. This Agreement shall not be effective unless Recipient executes and delivers within 10
business days of the date of this Agreement (a) this Agreement and (b) a written “Agreement to Protect Company Assets” in a form acceptable to the Company, unless Recipient has previously executed and delivered such an agreement
to the satisfaction of the Company. 
 17. Entire Agreement. This Agreement constitutes the entire agreement and
supersedes all prior understandings and agreements written or oral, of the parties hereto with respect to the subject matter hereof. There is no representation or statement made by any party on which another party has relied which is not included in
this Agreement. Neither this Agreement nor any term hereof may be amended, waived, discharged, or terminated except by a written instrument signed by the Company and the Recipient; provided, however, that the Company unilaterally may waive any
provision hereof in writing to the extent that such waiver does not adversely affect the interests of the Recipient hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any
other provision hereof. Notwithstanding anything in this Agreement to the contrary, the terms of this Agreement and all Awards granted hereunder shall be subject to the terms of any written employment agreement, if any, between the Recipient and the
Company. 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this
Agreement, or caused this Agreement to be duly executed and delivered on his or its behalf, as of the day and year first above written. 
  

			
	PHARMERICA CORPORATION
		
	BY:	 	  

		
	DATE:	 	  

	
	RECIPIENT
	
	  

		
	DATE:	 	  

	
	RECIPIENT’S ADDRESS:Non-Qualified Stock Option Agreement

 Exhibit 10.4 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 OF

 REXNORD HOLDINGS, INC. 
 THIS AGREEMENT (this “Agreement”) dated as of October 29, 2009 is made by and between Rexnord Holdings, Inc., a Delaware corporation (the “Company”), and
Praveen R. Jeyarajah, a non-employee director of the Company (as defined herein) (the “Optionee”) 
 WHEREAS, the Company wishes to carry out the 2006 Stock Option Plan of Rexnord Holdings, Inc. (as may be amended from time to time, the “Plan”), the terms of which are hereby incorporated by reference and made a part
of this Agreement; and 
 WHEREAS, in consideration for the Optionee’s agreement to continue to serve as a member of
the Board and serve as Chairman of the Executive Committee, the Board has determined that it would be to the advantage and best interest of the Company and its stockholders to grant the Optionee the Non-Qualified Stock Option to purchase shares of
the Company’s common stock, par value $0.01 per share (“Common Stock”), provided for herein (the “Option”). 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the parties hereto do
hereby agree as follows: 
 ARTICLE I  
 DEFINITIONS 
 Whenever the following terms are used in this
Agreement, they shall have the meaning specified below unless the context clearly indicates otherwise. Capitalized terms used in this Agreement and not defined herein shall have the meaning given to such terms in the Plan. The singular pronoun shall
include the plural, where the context so indicates. 
 “Cumulative Debt Repayment” for a given fiscal year
shall mean the positive excess, if any, of (a) the weighted average of the debt (excluding debt associated with the Company’s PIK Notes) outstanding during the 60 calendar days preceding April 30, 2009, as such debt outstanding may be
increased or decreased as appropriate for the effect of any post closing adjustment as determined by the Committee, over (b) the weighted average of the debt (excluding debt associated with the Company’s PIK Notes) outstanding during the
60 calendar days preceding April 30 of the fiscal year immediately following the given fiscal year. 
 “Cumulative
Debt Repayment Target” for a period commencing on or after April 1, 2009 shall be as set forth in Appendix A to this Agreement, subject to the provisions of Section 6.6 hereof. 
 “Cumulative EBITDA” as of a given date shall mean the total of EBITDA from and after April 1, 2009 through such date.

 “Cumulative EBITDA Target” for a given period commencing on or after April 1, 2009, shall be as set
forth in Appendix A of this Agreement, subject to the provisions of Section 6.6 hereof. 
 “Debt
Repayment” for a given fiscal year of the Company shall mean, excluding any debt repayment in conjunction with an equity offering of securities of the Company, the positive excess, if any, of (a) the weighted average of the debt
(excluding debt associated with the Company’s PIK Notes) outstanding during the 60 calendar days preceding April 30 of the given fiscal year, over (b) the weighted average of the debt (excluding debt associated with the Company’s
PIK Notes) outstanding during the 60 calendar days preceding April 30 of the fiscal year immediately following the given fiscal year. 

 “Debt Repayment Target” for a period commencing on or after April 1,
2009 shall be as set forth in Appendix A to this Agreement, subject to the provisions of Section 6.6 hereof. 
 “EBITDA” for a given period shall mean consolidated net income before interest, taxes, depreciation, amortization, noncash charges, extraordinary items (including Other Income and Expense items as well as LIFO Income and
Expense items) and management or similar fees payable to Apollo Management, L.P. or any of its Affiliates, as reflected on the Company’s audited consolidated financial statements for such period. Consolidated net income shall be determined in
accordance with generally accepted accounting principles except that gains or losses from extraordinary, unusual or non-recurring items may be excluded in the discretion of the Committee. 
 “EBITDA Target” for a given period commencing on or after April 1, 2009, shall be as set forth in Appendix A of
this Agreement, subject to the provisions of Section 6.6 hereof. 
 “Principal Stockholder(s) Investment”
means direct or indirect investments in shares of Common Stock, preferred stock or other debt or equity securities of the Company or any of its Subsidiaries made by the Principal Stockholder(s) on or after July 21, 2006. 
 “Principal Stockholder(s) CAGR” means the pretax compound annual growth rate calculated on a quarterly basis based on the
cash proceeds realized to the Principal Stockholder(s) in a Liquidity Event on the Principal Stockholder(s) Investment (which proceeds, for purposes hereof, shall be determined after deducting all transaction costs and all investment banking,
accounting, attorney, consultant and similar fees paid or payable by the Principal Stockholder(s) to the extent not paid or reimbursed by the Company or any other third party) and the aggregate amount invested by the Principal Stockholder(s) for all
Principal Stockholder(s) Investments, assuming all Principal Stockholder(s) Investments were purchased by one Person and were held continuously by such Person, after dilution for outstanding options, warrants or other rights to acquire shares of
Common Stock or other equity securities of the Company. The Principal Stockholder(s) CAGR shall be determined based on the actual time of each Principal Stockholder(s) Investment and including, as a return on such investment, any cash dividends,
cash distributions or cash interest paid by the Company or any Subsidiary of the Company in respect of such investment during such period, but shall exclude any management or monitoring fees paid to Apollo Management, L.P. or any of its Affiliates.

 ARTICLE II  
 GRANT OF OPTION 
 Section 2.1 Grant of Option

 In consideration of the Optionee’s service as a member of the Board and as Chairman of the Executive Committee, and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, on the date hereof the Company irrevocably grants to the Optionee the Option to purchase any part or all of an aggregate of One Hundred Thirty
Thousand Seven Hundred Forty-three (130,743) shares of Common Stock upon the terms and conditions set forth in the Plan and this Agreement. 
 Section 2.2 Option Subject to Plan 
 The Option granted
hereunder is subject to the terms and provisions of the Plan, including without limitation, Article V and Sections 7.1, 7.2, 7.3 and 7.10 thereof. 
 Section 2.3 Option Price 
 The purchase price of the shares of
Common Stock covered by the Option shall be Twenty and no/100 Dollars ($20.00) per share (without commission or other charge). 

 ARTICLE III 
 EXERCISABILITY 
 Section 3.1
Commencement of Exercisability 
 (a) Subject to Section 3.1(e) and Section 3.3 of this Agreement, seventy
percent (70%) of the Option granted pursuant to this Agreement, shall become vested in three (3) cumulative installments, provided that the Optionee remains a director of the Company from the date of grant through such date, as follows:

 (i) The first installment shall become vested on October 29, 2010; 
 (ii) The second installment shall become vested on October 29, 2011; 
 (iii) The final installment shall become vested on October 29, 2012. 
 (b) Subject to Section 3.1(e) and Section 3.3 of this Agreement, thirty percent (30%) of the Option granted pursuant to this
Agreement, shall become vested as follows: 
 (i) An installment of up to 2.5% of the shares of Common Stock
covered by the Option shall become vested on, or within 120 days following, March 31 of each fiscal year 2010 through 2012, in each case as determined by the Committee in its sole discretion as follows: 
 (A) if the Debt Repayment for any such fiscal year equals or exceeds 90%, but is less than 95%, of the Debt Repayment Target
for such fiscal year, then 1.25% of the shares of Common Stock covered by the Option shall become vested; or 
 (B) if the Debt Repayment for any such fiscal year equals or exceeds 95%, but is less than 100%, of the Debt Repayment Target for such fiscal year, then 1.875% of the shares of Common Stock covered by the Option shall become vested; or

 (C) if the Debt Repayment for any such fiscal year equals or exceeds the Debt Repayment Target for such fiscal
year, then 2.5% of the shares of Common Stock covered by the Option shall become vested. 
 (ii) An installment
of up to 2.5% of the shares of Common Stock covered by the Option shall become vested on, or within 120 days following, March 31 of each fiscal year 2010 through 2012 as determined by the Committee in its sole discretion as follows: 

(A) if the Cumulative Debt Repayment for any such fiscal year equals or exceeds 90%, but is less than 95%, of the
Cumulative Debt Repayment Target for such fiscal year, then 1.25% of the shares of Common Stock covered by the Option shall become vested; or 
 (B) if the Cumulative Debt Repayment for any such fiscal year equals or exceeds 95%, but is less than 100%, of the Cumulative Debt Repayment Target for such fiscal year, then 1.875% of the shares of
Common Stock covered by the Option shall become vested; or 
 (C) if the Cumulative Debt Repayment for any such
fiscal year equals or exceeds the Cumulative Debt Repayment Target for such fiscal year, then 2.5% of the shares of Common Stock covered by the Option shall become vested. 
 (iii) If the Cumulative Debt Repayment as of the end of any fiscal year 2010 through 2012 is less than the Cumulative Debt
Repayment Target through the end of such fiscal year, that portion of the Option that was subject to accelerated vesting pursuant to Section 3.1(b)(i) and 3.1(b)(ii), but which did not become vested pursuant to Sections 3.1(b)(i)(A), (B)
or (C) or 3.1(b)(ii)(A), (B) or (C), with respect to such fiscal year, subject to Sections 3.2 and 3.4, shall become vested, as determined by the Committee, on, or within 120 days following, the last day of the first fiscal year in
which the Cumulative Debt Repayment equals or exceeds the Cumulative Debt Repayment Target for such fiscal year. 
  

 (iv) An installment of up to 2.5% of the shares of Common Stock covered by
the Option shall become vested on, or within 120 days following, March 31 of each fiscal year 2010 through 2012 as determined by the Committee in its sole discretion as follows: 
 (A) if EBITDA for any such fiscal year equals or exceeds 90%, but is less than 95%, of the EBITDA Target for such fiscal
year, then 1.25% of the shares of Common Stock covered by the Option shall become vested; or 
 (B) if EBITDA for
any such fiscal year equals or exceeds 95%, but is less than 100%, of the EBITDA Target for such fiscal year, then 1.875% of the shares of Common Stock covered by the Option shall become vested; or 
 (C) if EBITDA for any such fiscal year equals or exceeds the EBITDA Target for such fiscal year, then 2.5% of the shares of
Common Stock covered by the Option shall become vested. 
 (v) An installment of up to 2.5% of the shares of
Common Stock covered by the Option shall become vested on, or within 120 days following, March 31 of each fiscal year 2010 through 2012 as determined by the Committee in its sole discretion as follows: 
 (A) if Cumulative EBITDA for any such fiscal year equals or exceeds 90%, but is less than 95%, of the Cumulative EBITDA
Target for such fiscal year, then 1.25% of the shares of Common Stock covered by the Option shall become vested; or 
 (B) if Cumulative EBITDA for any such fiscal year equals or exceeds 95%, but is less than 100%, of the Cumulative EBITDA Target for such fiscal year, then 1.875% of the shares of Common Stock covered by the Option shall become vested; or

 (C) if Cumulative EBITDA for any such fiscal year equals or exceeds the Cumulative EBITDA Target for such
fiscal year, then 2.5% of the shares of Common Stock covered by the Option shall become vested. 
 (vi) if
Cumulative EBITDA as of the end of any fiscal year 2010 through 2012 is less than the Cumulative EBITDA Target through the end of such fiscal year, that portion of the Option that was subject to accelerated vesting pursuant to Sections 3.1(b)(iv)
and 3.1(b)(v), but which did not become vested pursuant to Sections 3.1(b)(iv)(A), (B) or (C) or 3.1(b)(v)(A), (B) or (C), with respect to such fiscal year, subject to Sections 3.2 and 3.4, shall become vested, as determined by the
Committee, on, or within 120 days following, the last day of the first fiscal year in which Cumulative EBITDA equals or exceeds the Cumulative EBITDA Target for such fiscal year. 
 (c) Notwithstanding the foregoing provisions of this Section 3.1, upon the occurrence of the first Liquidity Event, the following shall
immediately prior to the effective date of such Liquidity Event become vested in full: 
 (i) that portion of the
Option that remains eligible to become vested pursuant to Section 3.1(a); 
 (ii) at the election and sole
discretion of the Committee, that portion of the Option that has not, as of such Liquidity Event, become eligible to become vested pursuant to Sections 3.1(b)(i), 3.1(b)(ii), 3.1(b)(iv) or 3.1(b)(v); 
  

 (iii) that portion of the Option that remains eligible to become vested
pursuant to Section 3.1(b), but only if the Principal Stockholder(s) CAGR as of the Liquidity Event equals or exceeds 25%. 
 (d) The Committee shall make the determination as to whether the respective Debt Repayment, Cumulative Debt Repayment, EBITDA, and Cumulative EBITDA Targets have been met, and shall determine the extent,
if any, to which the Option as become vested, on any such date as the Committee in its sole discretion shall determine; provided, however, that with respect to each fiscal year such date shall not be later than the 120th day following March 31 of such fiscal year. 
 (e) Except with respect to any portion of the Option that as of the Optionee’s Termination of Directorship is eligible to vest pursuant
to Section 3.1(b) for the fiscal year preceding the fiscal year in which the Optionee’s Termination of Directorship occurs, no portion of the Option which is unvested at the Optionee’s Termination of Directorship shall thereafter
become vested. 
 Section 3.2 Duration of Exercisability 
 The installments provided for in Section 3.1 are cumulative. Each such installment which becomes vested pursuant to Section 3.1
shall remain vested and may be exercised until the Option expires pursuant to Section 3.3. 
 Section 3.3
Expiration of Option 
 The Option may not be exercised to any extent by any Person after the first to occur of any of the
following events: 
 (a) The expiration of ten years from the date the Option was granted; 
 (b) If the Optionee’s Termination of Directorship is for any reason other than (i) by the Company for “cause” (in
accordance with the Company’s Bylaws), or (ii) on account of the Optionee’s death or disability (as defined in Section 22(e)(3) of the Code), the later of (x) the ninetieth day following the date of the Optionee’s
Termination of Directorship or (y) to the extent that, as of the Optionee’s Termination of Directorship, any portion of the Option remains eligible to vest pursuant to Section 3.1(b) for the fiscal year preceding the fiscal year in
which the Optionee’s Termination of Directorship occurs, the thirtieth day following the date of the Committee’s determination under Section 3.1(d) for such fiscal year; 
 (c) The date of the Optionee’s Termination of Directorship by the Company for “cause” (in accordance with the Company’s
Bylaws); 
 (d) If the Optionee’s Termination of Directorship is on account of the Optionee’s death or disability
(within the meaning of Section 22(e)(3) of the Code), the expiration of 12 months from the date of the Optionee’s Termination of Directorship; or 
 (e) The occurrence of a Liquidity Event, provided that any portion of the Option that is vested as of the occurrence of the Liquidity Event may be exercised concurrently therewith. 
 Section 3.4 Partial Exercise 
 Any vested portion of the Option or the entire Option, if then wholly vested, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof expires;
provided, however, that each partial exercise shall be for not less than 100 shares of Common Stock and shall be for whole shares of Common Stock only. 

 Section 3.5 Exercise of Option 
 The exercise of the Option shall be governed by the terms of this Agreement and the terms of the Plan, including without limitation, the
provisions of Article V of the Plan, which, among other things, require that the Optionee (or, in the event of the Optionee’s death or disability, the Optionee’s Eligible Representative) deliver an executed copy of a Joinder to the
Stockholders’ Agreement designated by the Company (in the form attached to such Stockholders’ Agreement) to the Secretary as a condition to the exercise of the Option. 
 ARTICLE IV 
 OTHER PROVISIONS 

Section 4.1 Optionee’s Service as a Director 
 Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the service of the Company or any of its
affiliates (whether as a director or otherwise). 
 Section 4.2 Shares Subject to Plan and Stockholder
Agreement 
 The Optionee acknowledges that any shares of Common Stock acquired upon exercise of the Option are subject to
the terms of the Plan and the Stockholders’ Agreement, including without limitation, the restrictions set forth in Section 5.6 of the Plan. 
 Section 4.3 Construction 
 This Agreement shall be administered,
interpreted and enforced under the laws of the state of New York, without regard to conflicts of laws provisions that would give effect to the laws of another jurisdiction. 
 Section 4.4 Conformity to Securities Laws 
 The Optionee acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated
thereunder by the Securities and Exchange Commission, including without limitation, Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as
to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 Section 4.5 Adjustments in Debt Repayment and EBITDA Targets 
 The Debt Repayment and EBITDA Targets (including the Cumulative Debt Repayment and Cumulative EBITDA Targets) specified in Appendix A are
based upon certain revenue and expense assumptions about the future business of the Company as of the date the Option is granted. Accordingly, in the event that, after such date, the Committee determines, in its sole discretion, that any acquisition
or disposition of any business by the Company or any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, any
unusual or nonrecurring transactions or events affecting the Company, or the financial statements of the Company, or change in applicable laws, regulations, or accounting principles occurs such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to the Option, then the Committee shall, in good faith and in such manner as it may deem
equitable, adjust the financial targets set forth on Appendix A to reflect the projected effect of such transaction(s) or event(s) on Debt Repayment and/or EBITDA, subject to Section 7.1 of the Plan. 

 Section 4.6 Entire Agreement 
 The parties hereto acknowledge that this Agreement and the Plan set forth the entire agreement and understanding of the parties and supersede
all prior written or oral agreements or understandings with respect to the subject matter hereof. The obligations imposed by this Agreement are severable and should be construed independently of each other. The invalidity of one provision shall not
affect the validity of any other provision. If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, or as applied to any circumstances, under the laws of any jurisdiction which may govern for such purpose, then
such provision shall be deemed, to the extent allowed by the laws of such jurisdiction, to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, either generally or as applied to such
circumstance, or shall be deemed exercised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law, as if such provision had been originally incorporated herein as so
modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be. 
 Section 4.7 Amendment 
 The Board at any time, and from time to time, may amend the terms of this
Agreement, provided, however, that the rights of the Optionee shall not be adversely impaired without the Optionee’s written consent. The Company shall provide the Optionee with notice and a copy of any amendment made to this Agreement

 Section 4.8 Arbitration; Waiver of Jury Trial 
 Any dispute or controversy arising under, out of, or in connection with or in relation to this Agreement or the Plan shall be finally
determined and settled by arbitration in New York, New York in accordance with the Commercial Rules of the American Arbitration Association, and judgment upon the award may be entered in any court having jurisdiction. Within 20 days of the
conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final and non-appealable; provided,
however, that the parties hereto agree that the arbitrator shall not be empowered to award punitive damages against any party to such arbitration. To the extent permitted by law, the arbitrator’s fees and expenses will be borne equally by
each party. In the event that an action is brought to enforce the provisions of this Agreement or the Plan pursuant to this Section 4.8, each party shall pay its own attorney’s fees and expenses regardless of whether in the opinion of the
court or arbitrator deciding such action there is a prevailing party. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL, INCLUDING TRIAL BY JURY, IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THE PLAN
OR THIS AGREEMENT. 
 Section 4.9 Notices 
 All notices, requests, consents and other communications hereunder to any party hereto shall be deemed to be sufficient if contained in a
written instrument and shall be deemed to have been duly given when delivered in person, by telecopy, by nationally-recognized overnight courier, or by first class registered or certified mail, postage prepaid, addressed to such party at the address
set forth below or such other address as may hereafter be designated in writing by the addressee to the addressor: 
  

			
	(i)	  	if to the Company, to:
	
	Rexnord Holdings, Inc.
	 4701 Greenfield Avenue
 Milwaukee, WI 53214
 Attention: Patty Whaley
  
 with copies to:

	
	 Rexnord Holdings, Inc.
 c/o Apollo Management, L.P.

	10250 Constellation Blvd, Suite 2900
	Los Angeles, CA 90067
	Fax: (310) 843-1933
	Attention: Larry Berg

			
	and
	
	 Rexnord Holdings, Inc.
 c/o Apollo Management, L.P.
 9 West 57th Street, 43rd Floor
 New
York, NY 10019

	 Fax: (212) 515-3288
 Attention: Steven Martinez
  
 and

	
	 O’Melveny & Myers LLP
 Times Square Tower

	 7 Times Square
 New
York, NY 10036
 Fax: (212) 326-2061
 Attention: John M. Scott, Esq.

		
	(ii)	  	if to the Optionee, to the Optionee’s home address on file with the Company.

 Section 4.10 Counterparts 
 This Agreement may be executed in several counterparts, including via facsimile transmission, each of which shall be deemed to be an
original, but all of which together will constitute one and the same Agreement. 
 [Signature Page to Follow] 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties
hereto as of the day, month and year first set forth above. 
  

			
	THE COMPANY:
	
	REXNORD HOLDINGS, INC.
		
	By:	 	 /s/ Patricia M. Whaley

	Name:	 	Patricia M. Whaley
	Title:	 	Vice President, General Counsel & Secretary

  

			
	THE OPTIONEE:
		
	Signature:	 	 /s/ Praveen R. Jeyarajah

	Print Name:	 	Praveen R. Jeyarajah

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