Document:

Incremental Facility Amendment

 
Exhibit 10.7 
 INCREMENTAL FACILITY AMENDMENT (this “Amendment”) dated as of February 7,
2007, among RBS GLOBAL, INC., a Delaware corporation (“Target”), REXNORD LLC, a Delaware limited liability company (f/k/a Rexnord Corporation) (“Rexnord” and, together with Target, the “Borrowers”),
the INCREMENTAL LENDERS (as defined below) and MERRILL LYNCH CAPITAL CORPORATION, as administrative agent (in such capacity, the “Administrative Agent”) under the Credit Agreement referred to below, to the CREDIT AGREEMENT dated as
of July 21, 2006, among CHASE ACQUISITION I, INC., a Delaware corporation (“Holdings”), the Borrowers, the Lenders party thereto from time to time and the agents, arrangers and bookrunners party thereto, as in effect
immediately prior to this Amendment (the “Credit Agreement”). 
 A. Pursuant to the Credit Agreement, the Lenders have
extended credit to the Borrowers, and have agreed to extend credit to the Borrowers, in each case pursuant to the terms and subject to the conditions set forth therein. 
 B. The Borrowers have informed the Administrative Agent that they intend to acquire (the “Acquisition”), directly or indirectly, the plumbing products business of Jacuzzi Brands, Inc., pursuant to the
Purchase Agreement, dated as of October 11, 2006 (the “Purchase Agreement”). 
 C. Pursuant to Section 2.21 of the
Credit Agreement, the Borrowers have requested that the Incremental Lenders (as defined below) provide Incremental Term Loans (such term and each other capitalized term used but not defined herein having the meaning assigned to such term in the
Credit Agreement) in the form of Other Term Loans in an aggregate principal amount of $200,000,000, to finance, in part, the Acquisition and the payment of related fees and expenses. 
 D. The Incremental Lenders are willing to provide such Incremental Term Loans to the Borrowers pursuant to the terms and subject to the conditions set
forth herein. 
 E. With respect to such Incremental Term Loans (i) Credit Suisse Securities (USA) LLC (“CS
Securities”) and Banc of America Securities LLC (“BAS”) will act as joint lead arrangers and joint bookrunners (together in such capacity, the “Arrangers”), (ii) CS Securities, BAS and UBS Securities
LLC (“UBS Securities”) will act as joint bookrunners, (iii) BAS will act as sole syndication agent and (iv) UBS will act as documentation agent. 
  

 48 

 Accordingly, in consideration of the mutual agreements herein contained and other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, and subject to the conditions set forth herein, Holdings, the Borrowers, the Incremental Lenders and the Administrative Agent hereby agree as follows: 
 SECTION 1. Defined Terms. As used in this Amendment, the following terms have the meanings specified below: 
 “Amendment Transactions” shall mean the execution and delivery of this Amendment and the Reaffirmation Agreement (as defined in
Section 6(f) hereof) by each Person party hereto or thereto, the satisfaction of the conditions to the effectiveness hereof and thereof and the consummation of the transactions contemplated hereby and thereby. 
 “Incremental Effective Date” shall mean the date on which all the conditions set forth or referred to in Section 6 hereof shall
have been satisfied (or waived by each of the Incremental Lenders). 
 “Incremental Lenders” shall mean the persons listed
on Schedule 1 hereto (other than any such person that has ceased to be a party hereto pursuant to an Assignment and Acceptance in accordance with Section 9.04 of the Credit Agreement), as well as any person that becomes an
“Incremental Lender” hereunder pursuant to Section 9.04 of the Credit Agreement. 
 “Incremental Tranche B-2
Term B Loan Commitment” shall mean, with respect to each Incremental Lender, the agreement of such Incremental Lender to make a Tranche B-2 Term B Loan hereunder on the Incremental Effective Date, expressed as an amount
representing the maximum principal amount of the Tranche B-2 Term B Loan to be made by such Incremental Lender hereunder, as set forth on Schedule 1 hereto or in the Assignment and Acceptance Agreement pursuant to which such Incremental
Lender shall have assumed its Incremental Term Loan Commitment, as applicable. The aggregate amount of the Incremental Tranche B-2 Term B Loan Commitments of all Incremental Lenders as of the date of this Amendment will be $200,000,000.

 “Tranche B-2 Term B Loans” shall mean the loans made pursuant to Section 2 of this Amendment. 
 SECTION 2. Commitment. Subject to the terms and conditions set forth herein, each Incremental Lender agrees to make a Tranche B-2 Term B Loan
to the Borrowers on the Incremental Effective Date in a principal amount not exceeding such Incremental Lender’s Tranche B-2 Term B Loan Commitment. The funding of the Tranche B-2 Term B Loans on the Incremental Effective Date shall
be consummated at a closing to be held at the offices of O’Melveny & Myers LLP, or at such other place as the Borrowers and the Administrative Agent shall agree upon. Unless previously terminated, the Tranche B-2 Term B Loan
Commitments shall terminate at 5:00 p.m., New York City time, on the Incremental Effective Date. 
 SECTION 3. Amendments to
Section 1.01. (a) Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in the appropriate alphabetical order: 
 “Incremental Effective Date” shall have the meaning set forth in Section 1 of the Tranche B-2 Term B Facility Amendment. 
 “Total Net Leverage Ratio” shall mean, on any date, the ratio of (a) the amount of Consolidated Debt of the Borrowers and their
Subsidiaries less, without duplication, the 

  

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Unrestricted Cash and Permitted Investments of the Borrowers and their Subsidiaries, in each case as of such date to (b) EBITDA for the period of four
consecutive fiscal quarters of the Borrower most recently ended as of such date, all determined on a consolidated basis in accordance with GAAP; provided, that for purposes of clause (b) above, (i) EBITDA shall be determined for the
relevant Test Period on a Pro Forma Basis and (ii) EBITDA shall include all adjustments of the nature used in connection with the calculation of Adjusted EBITDA as set forth in footnote 3 to the “Summary Historical and Unaudited Pro Forma
Financial Data” under “Offering Circular Summary” in the Senior Unsecured Notes Offering Memorandum and the Senior Subordinated Notes Offering Memorandum to the extent such adjustments, without duplication, continue to be applicable
in the relevant Test Period; provided, further, that the Borrowers shall deliver a Financial Officer’s certificate of the type contemplated by the last sentence of the definition of “Pro Forma Basis” in respect of all
adjustments pursuant to clause (ii) above. 
 “Tranche B-1 Term B Borrowing” shall mean a Borrowing comprised of
Tranche B-1 Term B Loans. 
 “Tranche B-1 Term B Loan Commitment” shall mean with respect to each Lender, the
commitment of such Lender to make Tranche B-1 Term B Loans as set forth in Section 2.01(a). The aggregate amount of the Tranche B-1 Term B Loan Commitments on the Closing Date is $610.0 million. 
 “Tranche B-1 Term B Loans” shall mean the term loans made by the Lenders to the Borrowers pursuant to Section 2.01(a).

 “Tranche B-2 Term B Borrowing” shall mean a Borrowing comprised of Tranche B-2 Term B Loans. 
 “Tranche B-2 Term B Facility Amendment” shall mean the Incremental Facility Amendment dated as of February 7, 2007, among the
Borrowers, the Incremental Term Lenders party thereto and the Administrative Agent. 
 “Tranche B-2 Term B Loan
Commitment” shall have the meaning set forth in Section 1 of the Tranche B-2 Term B Facility Amendment. 
 “Tranche B-2
Term B Loans” shall have the meaning set forth in Section 1 of the Tranche B-2 Term B Facility Amendment. 
 (b) The
definition of the term “Applicable Margin” in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced by the following text: 
 “Applicable Margin” shall mean for any day (i) with respect to any Tranche B-1 Term B Loan or Revolving Facility Loan, the applicable rate determined pursuant to the Pricing Grid and
(ii) with respect to any Tranche B-2 Term B Loans, 2.25% per annum in the case of any Eurocurrency Loan and 1.25% per annum in the case of any ABR Loan; provided, that on and after the first Adjustment Date occurring after
delivery of the financial statements and certificates required by Section 5.04 upon the completion of one full fiscal quarter of the Borrowers after the Incremental Effective Date, the Applicable Margin with respect to the Tranche B-2 Term
Loans will be determined pursuant to the Pricing Grid. 
  

 50 

 (c) The table captioned “Pricing Grid for Term B Loans” in the definition of Pricing Grid in
Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced by the following table: 
 Pricing Grid for
Tranche B-1 Term B Loans 
  

					
	 Corporate
 Credit Ratings
 (Moody’s/
S&P)
	  	 Applicable
 Margin for
 ABR Tranche
 B-1 Term B
 Loans
	  	 Applicable
 Margin for
 Eurocurrency
 Tranche B-1
 Term B
Loans

	 B1 or better by Moody’s and B+ or better by S&P
	  	1.25%	  	2.25%
			
	 Otherwise
	  	1.50%	  	2.50%

 Pricing Grid for Tranche B-2 Term B Loans 
  

					
	 Total Net
 Leverage Ratio
	  	 Applicable
 Margin for
 ABR Tranche
 B-2 Term B
 Loans
	  	 Applicable
 Margin for
 Eurocurrency
 Tranche B-2
 Term B
Loans

	 Less than or equal to 5.50 to 1.00
	  	1.00%	  	2.00%
			
	 Greater than 5.50 to 1.00
	  	1.25%	  	2.25%

 For the purposes of the foregoing relating to Revolving Facility Loans, Swingline Loans and Tranche B-2 Term B
Loans, changes in the Applicable Margin and Applicable Commitment Fee resulting from changes in the Total Senior Secured Bank Leverage Ratio and the Total Net Leverage Ratio shall become effective on the date (the “Adjustment Date”)
that is three Business Days after the date on which financial statements are delivered to the Lenders pursuant to Section 5.04 and shall remain in effect until the next change to be effected pursuant to this paragraph. If any financial
statements referred to above are not delivered within the time periods specified in Section 5.04, then, at the option of the Administrative Agent or the Required Lenders, until the date that is three Business Days after the date on which such
financial statements are delivered, the pricing level that is one pricing level higher than the pricing level theretofore in effect shall apply as of the first Business Day after the date on which such 

  

 51 

 
financial statements were to have been delivered but were not delivered. Each determination of the Total Senior Secured Bank Leverage Ratio pursuant to the
Pricing Grid shall be made in a manner consistent with the determination of the Total Senior Secured Bank Leverage Ratio pursuant to Section 6.11. 
 For purposes of the foregoing relating to Tranche B-1 Term B Loans, (i) if either S&P or Moody’s shall not have in effect a corporate credit rating (other than by reason of the circumstances referred to in the following
sentence), then such rating agency (or, if an Event of Default has occurred and is continuing, both rating agencies) will have deemed to have established a corporate credit rating that is below B+ (in the case of S&P) or below B1 (in the case of
Moody’s) and (ii) if any rating established or deemed to have been established by S&P or Moody’s shall be changed (other than as a result of a change in the rating system of either S&P or Moody’s), the change in the
Applicable Margin shall be effective as of the date on which such change is first announced by the rating agency making such change. If the rating system of S&P or Moody’s shall change, or if either such rating agency shall cease to be in
the business of issuing corporate credit ratings, the Borrowers and the Required Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the non-availability of ratings from such rating agency and,
pending the effectiveness of any such amendment, the rating of such rating agency shall be determined by reference to the rating most recently in effect from such rating agency prior to such change or cessation. 
 (d) The definition of the term “Repricing Transaction” in Section 1.01 of the Credit Agreement is hereby amended by inserting the text
“Tranche B-1” immediately preceding each occurrence of the text “Term B Loans” set forth therein. 
 (e) The definition
of the term “Term B Borrowing” in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced by the following text: 
 “Term B Borrowing” shall mean any Tranche B-1 Term B Borrowing or any Tranche B-2 Term B Borrowing. 
 (f) The definition of the term “Term B Loan Commitment” in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced by the following text: 
 “Term B Loan Commitment” shall mean with respect to each Lender, such Lender’s (a) Tranche B-1 Term B Loan
Commitment, (b) Tranche B-2 Term B Loan Commitment or (c) commitment to make Incremental Term Loans in the form of Term B Loans as set forth in Section 2.01(c). The initial amount of each Lender’s Term B Loan
Commitment is set forth on Schedule 2.01, Schedule 1 to the Tranche B-2 Term B Facility Amendment or in the Assignment and Assumption or Incremental Assumption Agreement pursuant to which such Lender shall have assumed its Term B
Loan Commitment (or its Incremental Term Commitment), as applicable. 
  

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 (g) The definition of the term “Term B Loans” in Section 1.01 of the Credit Agreement
is hereby deleted in its entirety and replaced by the following text: 
 “Term B Loans” shall mean (a) the Tranche
B-1 Term B Loans, (b) the Tranche B-2 Term B Loans and (c) any Incremental Term Loans in the form of Term B Loans made by the Incremental Term Lenders to the Borrowers pursuant to Section 2.01(c). 
 SECTION 4. Amendment to Section 2.01. Section 2.01(a) of the Credit Agreement is hereby amended by inserting the text “Tranche
B-1” immediately preceding each occurrence of the text “Term B Loans” in Section 2.01(a). 
 SECTION 5. Amendment to
Section 2.03. Section 2.03(i) of the Credit Agreement is hereby amended by deleting the text “Term B Loans” and replacing it with “Tranche B-1 Term B Loans, Tranche B-2 Term B Loans”. 
 SECTION 6. Amendment to Section 2.10. (a) Section 2.10(a)(i) of the Credit Agreement is hereby deleted in its entirety and replaced
by the following text: 
 (i) the Borrowers shall repay Tranche B-1 Term B Borrowings and Tranche B-2 Term B Borrowings, as
applicable, on each date set forth below or, if any such date is not a Business Day, on the next succeeding Business Day, in the aggregate principal amount set forth opposite such date (each such date being referred to as a “Term B Loan
Installment Date”): 
  

							
	 Date
	  	Amount of 
Tranche B-1 Term B
Borrowings 
to Be Repaid	  	Amount of 
Tranche B-2
Term B Borrowings
to Be Repaid
	December 31, 2006	  	$	1,525,000.00	  	 	—  
	March 31, 2007	  	$	1,525,000.00	  	$	500,000.00
	June 30, 2007	  	$	1,525,000.00	  	$	500,000.00
	September 30, 2007	  	$	1,525,000.00	  	$	500,000.00
	December 31, 2007	  	$	1,525,000.00	  	$	500,000.00
	March 31, 2008	  	$	1,525,000.00	  	$	500,000.00
	June 30, 2008	  	$	1,525,000.00	  	$	500,000.00
	September 30, 2008	  	$	1,525,000.00	  	$	500,000.00
	December 31, 2008	  	$	1,525,000.00	  	$	500,000.00
	March 31, 2009	  	$	1,525,000.00	  	$	500,000.00
	June 30, 2009	  	$	1,525,000.00	  	$	500,000.00
	September 30, 2009	  	$	1,525,000.00	  	$	500,000.00
	December 31, 2009	  	$	1,525,000.00	  	$	500,000.00
	March 31, 2010	  	$	1,525,000.00	  	$	500,000.00
	June 30, 2010	  	$	1,525,000.00	  	$	500,000.00
	September 30, 2010	  	$	1,525,000.00	  	$	500,000.00
	December 31, 2010	  	$	1,525,000.00	  	$	500,000.00
	March 31, 2011	  	$	1,525,000.00	  	$	500,000.00
	June 30, 2011	  	$	1,525,000.00	  	$	500,000.00
	September 30, 2011	  	$	1,525,000.00	  	$	500,000.00
	December 31, 2011	  	$	1,525,000.00	  	$	500,000.00
	March 31, 2012	  	$	1,525,000.00	  	$	500,000.00
	June 30, 2012	  	$	1,525,000.00	  	$	500,000.00
	 September 30, 2012
	  	$	1,525,000.00	  	$	500,000.00
	 December 31, 2012
	  	$	1,525,000.00	  	$	500,000.00
	 March 31, 2013
	  	$	1,525,000.00	  	$	500,000.00
	 June 30, 2013
	  	$	1,525,000.00	  	$	500,000.00
	 Term B Facility Maturity Date
	  	$	568,825,000.00	  	$	187,000,000.00

  

 53 

 (b) Section 2.10(e) of the Credit Agreement is hereby amended by inserting the text “Tranche
B-1” immediately preceding the text “Term B Loans” set forth therein. 
 SECTION 7. Amendment to Section 2.19.
Section 2.19(d) of the Credit Agreement is hereby amended by inserting the text “Tranche B-1” immediately preceding the text “Term B Loans” set forth therein. 
 SECTION 8. Amendment to Sections 3.12 and 5.04. (a) Section 3.12 of the Credit Agreement is hereby amended by inserting the text
“Tranche B-1” immediately preceding the text “Term B Loans” set forth therein. 
 (b) Section 5.04(c) of the Credit
Agreement is hereby amended by inserting the text “and setting forth the calculation of the Total Net Leverage Ratio as of the end of such quarter” immediately after the text “Financial Performance Covenant” set forth therein.

 SECTION 9. Conditions. The obligations of the Incremental Lenders to make the Tranche B-2 Term B Loans hereunder shall not become
effective until the date on which each of the following conditions is satisfied: 
 (a) The Administrative Agent shall have received
(i) from the applicable Borrower, at or prior to the time required by Section 2.03 of the Credit Agreement, a Borrowing Request with respect to the Borrowing of the Tranche B-2 Term B Loans that complies with the requirements of
Section 2.03 of the Credit Agreement and (ii) from each party hereto, either (A) a counterpart of this Amendment signed on behalf of such party or (B) written evidence satisfactory to the Administrative Agent (which may include
telecopy transmission of a signed signature page of this Amendment) that such party has signed a counterpart of this Amendment. 
 (b) The
Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Incremental Lenders and dated as of the Incremental Effective Date) of (i) O’Melveny & Myers LLP, special counsel
for the Borrowers, (ii) Patty Whaley, Esq., General Counsel of the Borrowers and their Subsidiaries, (iii) Murtha Cullina LLP, Connecticut counsel to Sanitary Dash Manufacturing Inc., (iv) Alston & Bird LLP, Georgia counsel
to Gary Concrete Products, Inc., (v) Reed Smith LLP, Pennsylvania counsel to Zurn Industries Inc., (vi) Sher Garner Cahill Richter Klein & Hilbert, LLC, Louisiana counsel to Prager Incorporated and (vii) Preston Gates Ellis
LLP, Washington counsel to Zurn EPC Services, Inc. The Borrowers hereby request such counsel to deliver such opinions. 
  

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 (c) The Administrative Agent shall have received such documents and certificates as the Administrative
Agent or its counsel may reasonably request relating to the organization, existence and good standing of each Loan Party on the Incremental Effective Date, the authorization of the Amendment Transactions and any other legal matters relating to such
Loan Parties or the Loan Documents, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel. 
 (d) On
the Incremental Effective Date, (i) the conditions set forth in paragraphs (b) and (c) of Section 4.01 of the Credit Agreement shall be satisfied, (ii) the Borrowers shall be in Pro Forma Compliance after giving effect to
the Tranche B-2 Term B Loans and the application of the proceeds therefrom as if made and applied on the Incremental Effective Date and (iii) the Administrative Agent shall have received a certificate of a Responsible Officer of the
Borrowers, dated as of the Incremental Effective Date, confirming compliance with the conditions set forth in clauses (i) and (ii) of this paragraph (d). 
 (e) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Incremental Effective Date (to the extent invoiced at least three Business Days prior to the Incremental
Effective Date). 
 (f) A Reaffirmation Agreement substantially in the form of Exhibit A hereto (the “Reaffirmation
Agreement”) shall have been executed and delivered by each party thereto. 
 (g) A Supplement or Acknowledgement and Consent to the
Collateral Agreement, as applicable, shall have been delivered by each Subsidiary set forth on Schedule 6(g). 
 (h) The
Collateral Agent shall have received counterparts of each Mortgage to be entered into with respect to each Mortgaged Property set forth on Schedule 6(h) duly executed and delivered by the record owner of such Mortgaged Property and
suitable for recording or filing. 
 (i) The Acquisition shall be consummated simultaneously with the Borrowing of the Incremental Term Loans
in accordance with applicable law and on the terms described in the Purchase Agreement and all related material agreements, without giving effect to any waiver or other modification thereof that is materially adverse to the interests of the Lenders
not approved by the Arrangers (which approval shall not be unreasonably withheld or delayed). 
 (j) The Borrowers shall have received not
less than (i) $275,000,000 in gross cash proceeds in the form of an equity contribution from the Fund and the Management Group and (ii) $460,000,000 in gross cash proceeds from the issuance of senior unsecured notes having terms and
conditions (other than in respect of interest rate and call premiums) that are in the aggregate no less favorable to the Borrowers than, and maturing no earlier than, the senior unsecured notes. 
 Notwithstanding the foregoing, the obligations of the Incremental Lenders to make Tranche B-2 Term B Loans shall not become effective unless each of the foregoing
conditions is satisfied at or prior to 5:00 p.m., New York City Time on March 17, 2007 (and, in the event such conditions are not so satisfied, this Amendment shall terminate at such time). 
  

 55 

 SECTION 10. Representations and Warranties. The Borrowers represent and warrant to the
Administrative Agent and to each of the Incremental Lenders that: 
 (a) This Amendment has been duly authorized, executed and delivered by
the Borrowers and constitutes, and each other Loan Document when executed and delivered by each Loan Party that is party thereto will constitute, a legal, valid and binding obligation of such Loan Party enforceable against each such Loan Party in
accordance with its terms, subject to (i) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied covenants of good faith and fair dealing. 
 (b) Neither the performance by any Loan Party of the Amendment Transactions, nor compliance by such Loan Party with the terms and provisions of the Reaffirmation Agreement (and, in the case of the Borrowers, this
Amendment), will (i) violate (A) any provision of law, statute, rule or regulation, or of the certificate or articles of incorporation or other constitutive documents (including any partnership, limited liability company or operating
agreements) or by-laws of such Loan Party, (B) any applicable order of any court or any rule, regulation or order of any Governmental Authority or (C) any provision of any indenture, certificate of designation for preferred stock,
agreement or other instrument to which such Loan Party is a party or by which any of them or any of their property is or may be bound, (ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both)
a default under, give rise to a right of or result in any cancellation or acceleration of any right or obligation (including any payment) or to a loss of a material benefit under any such indenture, certificate of designation for preferred stock,
agreement or other instrument, where any such conflict, violation, breach or default referred to in clause (i) or (ii) of this Section 7(b), would reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect, or (iii) result in the creation or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by Holdings (prior to a Qualified IPO), the Borrowers or any Subsidiary Loan Party, other than the
Liens created by the Loan Documents and Permitted Liens. 
 (c) The representations and warranties set forth in Article III of the
Credit Agreement are true and correct in all material respects on and as of the Incremental Effective Date, with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an
earlier date (in which case such representations and warranties shall be true and correct in all material respects as of such earlier date). 
 (d) Immediately prior to and after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing. 
 SECTION 11. Effectiveness; Amendments; Counterparts. This Amendment shall become effective as of the date first above written when the Administrative Agent shall have received counterparts of this Amendment that, when taken together,
bear the signatures of the Borrowers and the Incremental Lenders. This Amendment may not be amended nor may any provision hereof be waived except pursuant to a writing signed by the Borrowers, the Administrative Agent and each Incremental Lender.
This Amendment may be executed in two 

  

 56 

 
or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute a single contract. Delivery of an
executed counterpart of a signature page of this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment. 
 SECTION 12. Credit Agreement. Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the
Lenders, the Agents, the Issuing Bank, the Borrowers or any other Loan Party under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle the Borrowers to any future
consent to, or waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances. After the date
this Amendment becomes effective, any reference to the Credit Agreement shall mean the Credit Agreement as modified hereby. This Amendment shall constitute an “Incremental Assumption Agreement”, the Incremental Lenders shall constitute
“Lenders”, this Amendment and the Reaffirmation Agreement shall constitute “Loan Documents”, the Tranche B-2 Term B Loans shall constitute “Incremental Term Loans” and “Term B Loans” and the Tranche B-2 Term B
Loan Commitments shall constitute “Incremental Term Loan Commitments”, in each case for all purposes of the Credit Agreement and the other Loan Documents. 
 SECTION 13. APPLICABLE LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 14. Expenses. The Borrowers agree to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Amendment, to the extent required by Section 9.05 of the
Credit Agreement. 
 SECTION 15. Headings. The Section headings used herein are for convenience of reference only, are not part of
this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting this Amendment. 
  

 57 

 IN WITNESS WHEREOF, the parties hereto have caused this Incremental Facility Amendment to be duly
executed by their respective authorized officers as of the day and year first written above. 
  

			
	RBS GLOBAL, INC.,
		
	By:	 	 /s/ George C. Moore

	Name:	 	George C. Moore
	Title:	 	 Executive Vice President and

		 	 Chief Financial Officer

  

			
	REXNORD LLC,
		
	By:	 	 /s/ George C. Moore

	Name:	 	George C. Moore
	Title:	 	Executive Vice President and
Chief Financial Officer

  

 58 

			
	MERRILL LYNCH CAPITAL CORPORATION,
as Administrative Agent
		
	By:	 	 /s/ Don Burkitt

		 	Name: Don Burkitt
		 	Title: Vice President

  

 59 

			
	 CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Incremental Lender

		
	by	 	 /s/ Ian Nalitt

		 	Name: Ian Nalitt
		 	Title: Vice President
		
	By	 	 /s/ Denise L. Alvarez

		 	Name: Denise L. Alvarez
		 	Title: Associate

  

 60Form of 2007 Grant Acceptance Agreement relating to stock option grants

 Exhibit 10.1 
 Prudential Financial, Inc. 
 Executive Stock Option Program 
 Grant Acceptance Agreement 
 (for executives subject to the reporting requirements under Section 16(a) of the
U.S. Securities Exchange Act of 1934, as amended) 
 You have been granted XXX options (the “Options”) to purchase XXX shares of
Prudential Financial, Inc. common stock, par value $0.01 per share (“Common Stock”), on February 13, 2007 (the “Grant Date”). The Options shall not be treated as “incentive stock options,” as defined in
Section 422 of the Internal Revenue Code of 1986, as amended. 
 Vesting Dates: Subject to the terms, conditions and restrictions set forth
herein and in the Prudential Financial, Inc. Omnibus Incentive Plan (the “Plan”), the Options may be exercised on or after the dates indicated below as to that number of Options set forth below, and each Option represents a right to
purchase only one share of Common Stock. 
 Xx Options on February 13, 2008 
 Xx Options on February 13, 2009 
 Xx Options on February 13, 2010 
 Grant Price: $XX.XX per share of Common Stock (the “Grant Price”). 
 Expiration Date: The Options shall expire on February 13, 2017 (the “Expiration Date”). 
 See the brochure entitled
2007 Long-Term Incentive Program (the “Brochure”) for more information about this grant. This Grant Acceptance Agreement (this “Agreement”) and the Brochure are subject to the terms, conditions and restrictions contained
in the Plan (capitalized terms used but not defined herein have the meanings given such terms in the Plan). Except as specified otherwise, this Agreement and the Brochure are not a substitute for the official Plan document, which governs the
operation of the Plan. Also, this is not a stock certificate or negotiable instrument. 
 Your eligibility for the 2007 Long-Term Incentive Program (the
“Program”), the benefits provided by the Program, and all other terms and conditions of the Program and any long-term grant of stock options will be determined pursuant to, and are governed by, the provisions of the Plan document and this
Agreement, including any decisions of the committee designated under the Plan by the Prudential Financial, Inc. (“Prudential”) Board of Directors (the “Compensation Committee” or the “Committee”). Except as specifically
stated otherwise in this Agreement, if there is any discrepancy between the information in this Agreement or in the Brochure and the Plan document, or if there is a conflict between information discussed by anyone acting on behalf of Prudential and
the actual Plan document, the Plan document, as interpreted by the Committee (or its delegate), in its sole discretion, will always govern. 

	1.	Exercise Methods 

 Cash Exercise – lets
you exercise the Options and receive Common Stock, after paying in cash the Grant Price, applicable taxes and fees. 
 Sell to Cover
– lets you exercise the Options, direct the immediate sale of the portion of Common Stock purchased necessary to pay the Grant Price, applicable taxes and fees, without paying cash out of your pocket, and receive the remaining shares of Common
Stock. 
 One or more of these Exercise Methods outlined above may not be available to you should Prudential determine that its availability
will or could violate the terms of any relevant law or regulation. You may not exercise the Options at a time when the market price of the Common Stock does not exceed the Grant Price. 
  

	2.	Taxes 

 Prudential or any of its direct or indirect
subsidiaries (collectively, the “Company Group”), as applicable, shall have the right to deduct and report taxes (federal, state, local or foreign taxes, including social insurance taxes) or other obligations required to be withheld by law
on Options from any Common Stock or cash payments or distributions made to you. Prudential (or, if appropriate, any other member of the Company Group) also shall have the right to require you to remit to Prudential (or, if appropriate, any other
member of the Company Group) an amount necessary to satisfy any such taxes or other obligations. Prudential may defer issuance of Common Stock upon the exercise of any Options until such withholding is satisfied. 
  

	3.	Option Term 

 Once the Options vest, you will have
until the Expiration Date to exercise the Options, unless your employment ends prior to the Expiration Date. See the Brochure for a brief summary of the Plan terms regarding the effect a termination of employment will have on the Options.

  

	4.	Value of Options 

 Prudential makes no
representation as to the value of the Options or whether you will be able to realize any profit based on any award of Options to you. 
  

	5.	Exercise Upon Death, Disability and Other Termination of Employment 

  

	 	(a)	Notwithstanding any provisions of the Plan to the contrary, you agree that all the Options, whether vested or unvested, shall automatically be forfeited and cancelled upon the
termination, for any reason, of your employment with any member of the Company Group, and no shares of Common Stock may thereafter be purchased under the Options, except as follows: 

  

	 	(1)	Death. In the event your employment with any member of the Company Group terminates by reason of death, the Options that are then not yet exercised shall become immediately
exercisable in full and may be exercised by your estate at any time prior to the earlier of the (i) Expiration Date or (ii) third (3rd) anniversary (or such earlier date as the Committee shall determine) of your death; provided, however, that the Options shall be exercisable for not less than one (1) year after your death
even if such period exceeds the Expiration Date. 

  

 2 

	 	(2)	Disability. In the event your employment with any member of the Company Group terminates by reason of Disability, the Options that are then not yet exercised shall become
immediately exercisable in full and may be exercised by you (or, in the event of your death after termination of your employment when the Option is exercisable pursuant to its terms, by your estate), at any time prior to the earlier of the
(i) Expiration Date or (ii) three (3) years (or such shorter period as the Committee shall determine) following your termination of employment. 

  

	 	(3)	Approved Retirement. In the event (i) your employment with any member of the Company Group terminates, (ii) you qualify for an Approved Retirement, and
(iii) you execute and submit by the date specified by Prudential, and do not later revoke, a separation agreement and/or release in a form and with terms and conditions satisfactory to Prudential (hereafter referred to as the
“Release”), the following provisions will apply: 

  

	 	(A)	Subject to Subparagraph (B), below, unvested Options will become exercisable on the Vesting Dates shown above, and vested and unexercised Options may continue to be exercised, until
the earlier of (i) the Expiration Date or (ii) five (5) years following your termination of employment that qualifies as an Approved Retirement. 

  

	 	(B)	If your employment terminates during 2007, and you have been an active employee of the Company Group for less than three full calendar months during 2007, all the Options will be
forfeited and cancelled. 

  

	 	(4)	Resignation. In the event you (i) resign from your employment with any member of the Company Group, (ii) do not qualify for an Approved Retirement, and
(iii) execute and submit by the date specified by Prudential, and do not later revoke, a Release, the Options that are vested and unexercised as of the date of your termination of employment will be exercisable at any time following the
effective date of your Release, until the earlier of the (A) Expiration Date or (B) ninetieth (90th) day following your termination of employment. Any Options that were not vested as of the date your employment terminated shall automatically be forfeited and cancelled on such date. 

  

	 	(5)	Any Other Reason. In the event (i) your employment with any member of the Company Group terminates for any reason other than one described in Subsections 5(a)(1) through
(4) above, or Subsection 5(b) below, and (ii) you execute and submit by the date specified by Prudential, and do not later revoke, a Release, the Options that are vested and unexercised as of the date of your termination of employment will
be exercisable at any time following the effective date of the Release, until the earlier of the (A) Expiration Date or (B) ninetieth (90th) day following your termination of employment. Any Options that were not vested as of the date your employment terminated shall automatically be forfeited and cancelled on such date.

  

	 	(b)	 In the event your employment is terminated by any member of the Company Group for Cause, any Options that are then not yet exercised shall be immediately

  

 3 

	 	 
forfeited and cancelled upon such termination and shall not be exercisable thereafter, and the Committee may require that you disgorge any profit, gain or
other benefit (including, but not limited to, and dividends and Dividend Equivalents) received in respect of the exercise of any Options for a period of up to twelve (12) months prior to your termination of employment for Cause. For purposes of
this Subsection 5(b), in the event your employment is terminated by any member of the Company Group for Cause, the provisions of this Subsection 5(b) will apply notwithstanding any assertion (by you or otherwise) of a termination of employment for
any other reason enumerated under this Section 5. 

  

	6.	Covenant Not to Solicit; Other Terms and Restrictions 

  

	 	(a)	Restrictions During Employment. You agree that during your employment with any member of the Company Group, you shall not, other than on behalf of any member of the Company
Group, or as may otherwise be required in connection with the performance of your duties on behalf of any member of the Company Group, solicit or induce, either directly or indirectly, or take any action to assist any entity, either directly or
indirectly, in soliciting or inducing any employee of the Company Group (other than your administrative assistant) to leave the employ of the Company Group (“Induce Departures”). 

  

	 	(b)	Post-Employment Restrictive Covenants. You agree that you shall comply with the following restrictive covenants following the termination of your employment with any member
of the Company Group: 

  

	 	(1)	Non-solicitation. Until the latest Vesting Date shown above or, if ending later, for a period of one year after the termination of your employment with any member of the
Company Group for any reason, you shall not Induce Departures or hire or employ, or assist in the hire or employment of, either directly or indirectly, any individual (other than your administrative assistant) whose employment by the Company Group
ended within sixty (60) days preceding that individual’s hire or employment by you or your successor employer; 

  

	 	(2)	Additional Restrictive Covenants. In the event of your Approved Retirement due to your voluntary termination of employment, you shall not compete with the Company Group in
any business in which the Company Group is engaged as of your last date of employment that operates in any geographic area in which the Company Group operates as of your last date of employment, for a period of one year following your termination of
employment or until the latest Vesting Date shown above, whichever is the shorter period. 

  

	 	(c)	 Restrictions Separable and Divisible. You hereby acknowledge that you understand the restrictions imposed upon you by Subsections 6(a) and (b) of this
Agreement. Subsections 6(a) and (b) of this Agreement will only be enforced to the extent not contrary to applicable law. You and Prudential understand and intend that each such restriction agreed to by you will be construed as separable and
divisible from every other restriction, and that the unenforceability, in whole or in part, of any restriction will not affect the enforceability of the remaining restrictions and that one or more or all of such restrictions may be enforced in whole
or in part as the circumstances warrant. Prudential may waive any of these 

  

 4 

	 	 
restrictions or any breach in circumstances that it determines, in its sole discretion, do not adversely affect its interests, but only in a writing signed
by its Senior Vice President, Corporate Human Resources (or the successor to his or her human resource responsibilities), or his or her delegate. No waiver of any one breach of the restrictions contained herein will be deemed a waiver of any other
breach. 

  

	 	(d)	 Remedies. You agree that the restrictions in Subsections 6(a) and (b) of this Agreement are fair, reasonable and necessary, and are reasonably required
for the protection of Prudential and any other member of the Company Group. You also agree and acknowledge that the amount of damages that would derive from the breach of these restrictions is not readily ascertainable and that the restrictions
contained herein are a significant portion of the consideration that you are conveying or have conveyed to Prudential in consideration of the grant of the Option evidenced by this Agreement. Accordingly, you agree that, in the event that you fail to
execute and submit or you revoke a Release described in Section 5 of this Agreement, or you breach any of the restrictive covenants set forth in Subsections 6(a) and 6(b) of this Agreement, all unexercised Options shall be cancelled immediately
as of the date of such failure, as determined in the sole discretion of the Committee or its delegate. You also agree that if you breach any of the restrictive covenants set forth in Subsections 6(a) and 6(b) of this Agreement, in addition to such
equitable relief as may be available to Prudential as outlined below, you shall disgorge to Prudential Common Stock (rounded to the nearest whole share) equal in value (using the current Fair Market Value of Common Stock on the date the letter of
notification of the breach is dated) to the profit that you realized from the exercise of any portion of the Options occurring (x) in the case of any breach occurring while you are an employee of the Company Group, within twelve
(12) months before the date of such breach or at any time after the date of such breach or (y) in the case of a breach occurring after the termination of your employment, within six (6) months before the date on which your employment
with the Company Group terminates or at any time after the date of such termination of employment. For the avoidance of doubt, the term “profit” referred to in the preceding sentence shall be equal to the sums (determined separately for
each exercise of any portion of the Options occurring within the applicable period established pursuant to such sentence) of (i) (A) the Fair Market Value of a share of Common Stock on the date of exercise, in the case of a cash exercise,
or the price at which shares of Common Stock are sold, in the case of a cashless exercise, minus (B) the per share exercise price (i.e., the Grant Price) of the Option, times (ii) the number of shares of Common Stock acquired upon
such exercise of the Option(s). You shall pay any such amount (in the form of Common Stock) to Prudential within five (5) business days of the date Prudential notifies you that a breach of the provisions of this Section 6 has occurred. If
payment is not made within such period, any subsequent payment shall be made with interest at a rate equal to the prime rate as reported in The Wall Street Journal (Eastern Edition) on the date on which notice of your breach is sent to you by
Prudential, plus two (2) percent. Interest payments shall be made in the form of cash only. You also acknowledge that, in the event you 

  

 5 

	 	 
breach any part of this Section 6, the damages to Prudential would be irreparable. Therefore, in addition to monetary damages and/or reasonable
attorney’s fees, Prudential shall have the right to seek injunctive and/or other equitable relief in any court of competent jurisdiction to enforce this covenant. Further, you consent to the issuance of a temporary restraining order to maintain
the status quo pending the outcome of any proceeding. 

  

	7.	Compliance with Laws and Regulations 

 The Options
and the obligation of Prudential to sell and deliver shares of Common Stock hereunder shall be subject in all respects to (a) all applicable federal, state, local and foreign laws, rules and regulations, and (b) any registration,
qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in its sole discretion, determine to be necessary or applicable. Moreover, the Options may not be exercised if their
exercise, or the receipt of shares of Common Stock pursuant thereto, would be contrary to applicable law or the rules of any stock exchange. 
  

	8.	Investment Representation 

 If at the time of
exercise of all or part of the Options, the Common Stock is not registered under the Securities Act of 1933, as amended (the “Securities Act”), or there is no current prospectus in effect under the Securities Act with respect to the Common
Stock, you shall, if requested by the Committee, execute, prior to the delivery of any shares of Common Stock to you by Prudential, an agreement (in such form as the Committee may specify) in which you represent and warrant that you are purchasing
or acquiring the shares acquired under this Agreement for your own account, for investment only and not with a view to the resale or distribution thereof, and represent and agree that any subsequent offer for sale or distribution of any kind of such
shares shall be made only pursuant to either (a) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the shares being offered or sold, or
(b) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption you shall, prior to any offer for sale of such shares, obtain a prior favorable written opinion, in form and substance
satisfactory to the Committee, from counsel for or approved by the Committee, as to the applicability of such exemption thereto. 
  

	9.	Agreement to Retain Shares 

 You agree to retain
ownership of 50% of the net shares (after payment of the applicable exercise price, if any, applicable fees and applicable taxes) of Common Stock acquired upon exercise of any of your Options. You also agree to hold all Common Stock retained
pursuant to the preceding sentence until the later of (i) one year following the date of acquisition of such Common Stock, or (ii) the date that you have satisfied the Share Ownership Guidelines set forth in a letter from Arthur Ryan dated
April 4, 2002 (the “Guidelines”). Once you have satisfied the holding period set forth in the preceding sentence, you may dispose of any Common Stock held in excess of the Guidelines, subject only to the Personal Securities Trading
Policy, 

  

 6 

 
including the “Reporting Responsibilities and Procedures for Section 16 Officers and Directors and Control Persons of Prudential.” This
agreement to retain Common Stock is applicable to this grant and for as long as you are an insider for the purpose of Section 16(a) of the U.S. Securities Exchange Act of 1934, as amended. 
  

	10.	Governing Law 

 The validity, construction and
effect of this Agreement and the Plan shall be determined in accordance with the laws of the State of New Jersey without regard to principles of conflict of laws. 
  

	11.	Other Terms 

 The award of the Options does not
entitle you to any benefit other than that granted under the Plan. Any benefits granted under the Plan are not deemed compensation under any Prudential pension plan, welfare plan or any compensation plan or program and shall not be considered as
part of such compensation for purposes of calculating pension, bonuses, service awards, or in the event of severance, redundancy or resignation. 
 Prudential and its affiliates will not be responsible if you do not exercise the Options. 
 You understand and accept that the
benefits granted under the Plan are entirely at the sole discretion of Prudential, and that Prudential may modify, amend, suspend or terminate this Agreement, the Plan or any and all of the policies, programs and plans described in this Agreement in
whole or in part, at any time, without notice to you or your consent. Further, this grant of Options does not give you the right to be granted any further options or other forms of compensation or benefits at any time in the future. 
 You understand that you do not have any rights as a stockholder by virtue of the grant of the Options but only with respect to shares of Common Stock, if
any, actually issued to you in accordance with the terms hereof. 
 You understand and accept that if the Options are exercised at a time or
in a manner not specifically authorized by the Plan, this Agreement, or Plan administrative rules (i.e., in “Error”), Prudential will be entitled to correct the Error, including reversing the transaction and recouping any Common Stock or
gain that you might receive following the exercise. 
 Nothing contained in this Agreement or the Brochure is intended to constitute or create a
contract of employment nor shall it constitute or create the right to remain associated with or in the employ of any member of the Company Group for any particular period of time. Employment with any member of the Company Group is employment at
will, which means that either you or any member of the Company Group may terminate the employment relationship at any time, with or without cause or notice. 
  

 7 

 I accept the terms of this Agreement, and acknowledge that I understand this Agreement and the terms of the Plan. I
have received a copy of the Brochure as currently in effect. 
  

 8

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