Document:

exv10wll

EXHIBIT LL

Federal Signal Corporation

2005 Executive Incentive Compensation Plan

Restricted Stock Award Agreement

     You have been selected to receive a grant of Restricted Stock pursuant to the Federal Signal
Corporation 2005 Executive Incentive Compensation Plan (the “Plan”), as specified below:

	 	 	 	 	 
	Participant:  

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date
of Grant:

 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Number of Shares of Restricted Stock Granted:
	 	 	 	 
	 

	 	 	 	 

     Lapse of Restriction Dates: Restrictions placed on the Shares of Restricted Stock shall lapse
on the date and in the amount listed below:

	 	 	 	 	 
	 
	 
	 	 	 	 
	Date on Which

	 	Number of Shares for
	 	Cumulative Number of Shares for
	Restrictions Lapse

	 	Which Restrictions Lapse
	 	Which Restrictions Lapse
	 
	 	 	 	 
	 

This document constitutes part of the prospectus covering
securities that have been registered under the Securities Act of 1933.

     THIS AGREEMENT, effective as of the Date of Grant set forth above, represents the grant of
Shares of Restricted Stock by Federal Signal Corporation, a Delaware corporation (the “Company”),
to the Participant named above, pursuant to the provisions of the Plan.

     The Plan provides a complete description of the terms and conditions governing the Restricted
Stock. If there is any inconsistency between the terms of this Award Agreement and the terms of
the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this
Award Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan,
unless specifically set forth otherwise herein. The parties hereto agree as follows:

     1. Employment With the Company. Except as may otherwise be provided in Sections 5, 6 or 7,
the Restricted Stock granted hereunder is granted on the condition that the Participant remains an
Employee of the Company from the Date of Grant through (and including) each of the separate Lapse
of Restriction Dates, as set forth above (each such time period is referred to herein as a “Period
of Restriction”).

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     This grant of Restricted Stock shall not confer any right to the Participant (or any other
Participant) to be granted Restricted Stock or other Awards in the future under the Plan.

     2. Certificate Legend. Each certificate representing Shares of Restricted Stock granted
pursuant to the Plan shall bear the following legend:

“The sale or transfer of Shares of stock represented by this
certificate, whether voluntary, involuntary, or by operation of law,
is subject to certain restrictions on transfer as set forth in the
Federal Signal Corporation 2005 Executive Incentive Compensation
Plan, and in the associated Award Agreement. A copy of this Plan
and such Award Agreement may be obtained from Federal Signal
Corporation.”

     3. Removal of Restrictions. Except as may otherwise be provided herein and in the Plan, the
Shares of Restricted Stock granted pursuant to this Award Agreement shall become freely
transferable by the Participant on the date and in the amount set forth under the Lapse of
Restriction Dates above, subject to applicable federal and state securities laws. Once Shares of
Restricted Stock are no longer subject to any restrictions, the Participant shall be entitled to
have the legend required by Section 2 of this Award Agreement removed from the applicable stock
certificates.

     4. Voting Rights and Dividends. During the Period of Restriction, the Participant may
exercise full voting rights and shall accrue all dividends and other distributions paid with
respect to the Shares of Restricted Stock while they are held. If any such dividends or
distributions are paid in Shares, such Shares shall be subject to the same restrictions on
transferability as are the Shares of Restricted Stock with respect to which they were paid.

     5. Termination of Employment.

	 	(a)	 	By Death, or Disability. In the event the employment of the
Participant is terminated due to death, or Disability (as determined by the
Committee) during the Periods of Restriction, the Periods of Restriction and
the restrictions imposed on the Shares of Restricted Stock held by the
Participant at the time of his or her death, or Disability shall immediately
lapse with all such Shares becoming immediately transferable by the Participant
or his or her estate, subject to applicable federal and state securities laws.
For the purposes of this Award Agreement, “Disability” shall have the meaning
ascribed to such term in the Participant’s governing long-term disability plan,
or if no such plan exists, at the discretion of the Committee.
	 
	 	(b)	 	Termination for Other Reasons. Except as set forth in Sections
6 or 7 below, in the event of the Participant’s termination of employment with
the Company for any reason, including retirement, but other than death, or
Disability, during the Periods of Restriction, all Shares of Restricted Stock
held by the Participant at the time of employment termination and still

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	 	 	 	subject to a Period of Restriction and other restrictions shall be forfeited
by the Participant to the Company. The transfer of employment of the
Participant between the Company and any affiliate or Subsidiary (or between
affiliates and/or Subsidiaries) shall not be deemed a termination of
employment for the purposes of this Award Agreement.

     6. Change in Control. Notwithstanding anything to the contrary in this Award Agreement, in
the event of a Change in Control of the Company (as that term is defined in the Company’s Change in
Control Policy) during the Periods of Restriction and prior to the Participant’s termination of
employment, the Periods of Restriction and restrictions imposed on the Shares of Restricted Stock
shall immediately lapse, with all such Shares of Restricted Stock vesting and becoming freely
transferable by the Participant, subject to applicable federal and state securities laws.

     7. Acceleration of Vesting of Shares of Restricted Stock in the Event of Divestiture of
Business Segment. In the event that the “Business Segment” (as that term is defined in this
Section below) in which the Participant is primarily employed as of the “Divestiture Date” (as that
term is defined in this Section below) is the subject of a “Divestiture of a Business Segment” (as
that term is defined in this Section below), and such divestiture results in the termination of the
Participant’s employment with the Company and its subsidiaries for any reason, the Periods of
Restriction and the restrictions imposed on the Shares of Restricted Stock subject to this
Agreement shall immediately lapse, with all such Shares of Restricted Stock vesting and becoming
freely transferable by the Participant, subject to applicable federal and state securities laws.

     For purposes of this Agreement, the term “Business Segment” shall mean a business line which
the Company treats as a separate business segment under the segment reporting rules under generally
accepted accounting principles as used in the United States, which currently includes the
following: Safety and Security Systems, Fire Rescue, Environmental Solutions and Tool. Likewise,
the term “Divestiture Date” shall mean the date that a transaction constituting a Divestiture of a
Business Segment is finally consummated.

     For purposes of this Agreement, the term “Divestiture of a Business Segment” means the
following:

	 	(a)	 	When used with reference to the sale of stock or other
securities of a Business Segment that is or becomes a separate corporation,
limited liability company, partnership or other separate business entity, the
sale, exchange, transfer, distribution or other disposition of the ownership,
either beneficially or of record or both, by the Company or one of its
subsidiaries to “Nonaffiliated Persons” (as that term is defined in this
Section below) of 100% of either (a) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (b) the combined voting
power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment;

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	 	(b)	 	When used with reference to the merger or consolidation of a
Business Segment that is or becomes a separate corporation, limited liability
company, partnership or other separate business entity, any such transaction
that results in Nonaffiliated Persons owning, either beneficially or of record
or both, 100% of either (a) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (b) the combined voting
power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment; or
	 
	 	(c)	 	When used with reference to the sale of the assets of the
Business Segment, the sale, exchange, transfer, liquidation, distribution or
other disposition of all or substantially all of the assets of the Business
Segment necessary or required to operate the Business Segment in the manner
that the Business Segment had been operated prior to the Divestiture Date.

     For purposes of this Agreement, the term “Nonaffiliated Persons” shall mean any persons or
business entities which do not control, or which are not controlled by or under common control
with, the Company.

     8. Nontransferability. Unless otherwise determined by the Committee pursuant to the terms of
the Plan, during the Periods of Restriction, Shares of Restricted Stock granted pursuant to this
Award Agreement may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated (a “Transfer”), other than by will or by the laws of descent and distribution, except
as provided in the Plan. If any Transfer, whether voluntary or involuntary, of Shares of
Restricted Stock is made, or if any attachment, execution, garnishment, or lien shall be issued
against or placed upon the Shares of Restricted Stock, the Participant’s right to such Shares of
Restricted Stock shall be immediately forfeited by the Participant to the Company, and this Award
Agreement shall lapse.

     9. Recapitalization. In the event there is any change in the Company’s Shares through the
declaration of stock dividends or through recapitalization resulting in stock splits or through
merger, consolidation, exchange of Shares, or otherwise, the number and class of Shares of
Restricted Stock subject to this Award Agreement may be equitably adjusted by the Committee, in its
sole discretion, to prevent dilution or enlargement of rights.

     10. Tax Withholding. The Company shall have the power and the right to deduct or withhold, or
require the Participant or beneficiary to remit to the Company, an amount sufficient to satisfy
federal, state, and local taxes (including the Participant’s FICA obligation), domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event arising as a result
of this Award Agreement. The Participant may elect, subject to any procedural rules adopted by the
Committee, to satisfy the minimum statutory withholding tax requirement, in whole or in part, by
having the Company withhold Shares having an aggregate Fair Market Value on the date the tax is to
be determined, equal to such minimum statutory withholding tax.

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     11. Other Tax Matters. The Participant shall review with his or her own tax advisors the
federal, state, local and other tax consequences, including those in addition to any tax
withholding obligations, of the investment in the Restricted Shares and the transactions
contemplated by this Award Agreement. The Participant has the right to file an election under
Section 83 of the Code. The filing of the 83(b) election is the responsibility of the Participant.
The Participant must notify the Company of the filing on or prior to the day of making the filing.

     12. Continuation of Employment. This Award Agreement shall not confer upon the Participant
any right to continuation of employment by the Company, nor shall this Award Agreement interfere in
any way with the Company’s right to terminate the Participant’s employment at any time.

     13. Beneficiary Designation. The Participant may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under this Award
Agreement is to be paid in case of his or her death before he or she receives any or all of such
benefit. Each such designation shall revoke all prior designations by the Participant, shall be in
a form prescribed by the Company, and will be effective only when filed by the Participant in
writing with the Secretary of the Company during the Participant’s lifetime. In the absence of any
such designation, benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate.

     Beneficiary Designation (name, address, and relationship):

      

      

      

     14. Entire Award; Modification

     This Award Agreement and the Plan constitute the entire agreement between the parties with
respect to the terms and supersede all prior or written or oral negotiations, commitments,
representations and agreements with respect thereto. The terms and conditions set forth in this
Award Agreement may only be modified or amended in writing, signed by both parties.

     15. Severability

     In the event any one or more of the provisions of this Award Agreement shall be held invalid,
illegal or unenforceable in any respect in any jurisdiction, such provision or provisions shall be
automatically deemed amended, but only to the extent necessary to render such provision or
provisions valid, legal and enforceable in such jurisdiction, and the validity, legality and
enforceability of the remaining provisions of this Award Agreement shall not in any way be affected
or impaired thereby.

     16. Miscellaneous.

	 	(a)	 	This Award Agreement and the rights of the Participant
hereunder are subject to all the terms and conditions of the Plan, as the same
may be amended from time to time, as well as to such rules and regulations as
the

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	 	 	 	Committee may adopt for administration of the Plan. The Committee shall
have the right to impose such restrictions on any Shares acquired pursuant
to this Award Agreement, as it may deem advisable, including, without
limitation, restrictions under applicable federal securities laws, under
applicable federal and state tax law, under the requirements of any stock
exchange or market upon which such Shares are then listed and/or traded, and
under any blue sky or state securities laws applicable to such Shares.
	 
	 	 	 	It is expressly understood that the Committee is authorized to administer,
construe, and make all determinations necessary or appropriate to the
administration of the Plan and this Award Agreement, all of which shall be
binding upon the Participant.
	 
	 	(b)	 	The Committee may terminate, amend, or modify the Plan;
provided, however, that no such termination, amendment, or modification of the
Plan may in any material way adversely affect the Participant’s vested rights
under this Award Agreement, without the written consent of the Participant.
	 
	 	(c)	 	The Participant agrees to take all steps necessary to comply
with all applicable provisions of federal and state securities and tax laws in
exercising his or her rights under this Award Agreement.
	 
	 	(d)	 	This Award Agreement shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.
	 
	 	(e)	 	All obligations of the Company under the Plan and this Award
Agreement, with respect to the Restricted Stock, shall be binding on any
successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or otherwise, of all
or substantially all of the business and/or assets of the Company.
	 
	 	(f)	 	The Participant agrees to execute this agreement and return it
to the address below within 45 days of receipt of this agreement or forfeit the
awarded restricted stock shares.

Federal Signal Corporation

1415
W.
22nd Street

Oak Brook, Illinois 60521

	 	(g)	 	To the extent not preempted by federal law, this Award
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Delaware.

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     IN WITNESS WHEREOF, the parties have caused this Award Agreement to be executed effective as
of                                         .

	 	 	 	 	 	 	 
	 	 	Federal Signal Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ATTEST:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Participant	 	 

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Federal Signal Corporation

2005 Executive Incentive Compensation Plan

Nonqualified Stock Option Award Agreement

     You have been selected to be a Participant in the Federal Signal Corporation 2005 Executive
Incentive Compensation Plan (the “Plan”), as specified below:

	 	 	 	 	 
	Participant:
	 	 	 	 
	 

	 	 

	 	 
	Date of Grant:
	 	 	 	 
	 

	 	 

	 	 
	Date of Expiration:
	 	 	 	 
	 

	 	 

	 	 
	Number of Option Shares:
	 	 	 	 
	 

	 	 

	 	 
	Option Price:
	 	 	 	 
	 

	 	 

	 	 

This document constitutes part of the prospectus covering

securities that have been registered under the Securities Act of 1933.

     THIS AWARD AGREEMENT, effective as of the Date of Grant set forth above, represents the grant
of nonqualified stock options (the “Options”) by Federal Signal Corporation, a Delaware corporation
(the “Company”), to the Participant named above, pursuant to the provisions of the Plan.

     The Plan provides a complete description of the terms and conditions governing the Options.
If there is any inconsistency between the terms of this Award Agreement and the terms of the Plan,
the Plan’s terms shall completely supersede and replace the conflicting terms of this Award
Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless
specifically set forth otherwise herein. The parties hereto agree as follows:

     1. Grant of Stock Options. The Company hereby grants to the Participant the number of Options
set forth above to purchase the number of shares of Company common stock (“Shares”) set forth
above, at the stated Option Price, which is one hundred percent (100%) of the Fair Market Value of
a Share on the Date of Grant, in the manner and subject to the terms and conditions of the Plan and
this Award Agreement. Subject to Section 11 herein, each Option shall be exercisable into one
Share.

     2. Exercise of Stock Options. Except as hereinafter provided, the Participant may exercise
these Options at any time after the Date of Grant, and according to the vesting schedule set forth
below, provided that no exercise may occur subsequent to the close of business on the Date of
Expiration.

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	 	 	Number of	 	Cumulative
	 	 	Options Which 	 	Percentage of Options 
	Date	 	Become Exercisable	 	Which Are Exercisable
	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	
 
	 

	 	 
	 	 

     These Options may be exercised in whole or in part, but not for less than one hundred (100)
Shares at any one time, unless fewer than one hundred (100) Shares then remain subject to the
Options, and the Options are then being exercised as to all such remaining Shares.

     3. Limitations on Exercise. The Participant must exercise all rights under this Award
Agreement prior to the tenth anniversary of the Date of Grant (i.e., the Options will expire upon
the tenth anniversary). The Participant may sell the Shares acquired via these Options at any
time.

     4. Termination of Employment by Death. In the event the employment of the Participant is
terminated by reason of death, all outstanding Options not yet vested shall become immediately
fully vested and, along with all previously vested Options, shall remain exercisable at any time
prior to their expiration date, or for one (1) year after the date of death, whichever period is
shorter, by such person or persons as shall have been named as the Participant’s beneficiary, or by
such persons that have acquired the Participant’s rights under the Options by will or by the laws
of descent and distribution.

     5. Termination of Employment by Disability. In the event the employment of the Participant is
terminated by reason of Disability, all outstanding Options not yet vested shall become immediately
fully vested and, along with all previously vested Options, shall remain exercisable at any time
prior to their expiration date, or for one (1) year after the date that the Committee determines
the definition of Disability to have been satisfied, whichever period is shorter. For purposes of
this Award Agreement, Disability shall have the meaning ascribed to such term in the Participant’s
governing long-term disability plan, or if no such plan exists, at the discretion of the Committee.

     6. Termination of Employment by Retirement. In the event the employment of the Participant is
terminated by reason of retirement (as determined by the Committee), all outstanding Options
previously vested shall remain exercisable at any time prior to their expiration date, or for three
(3) years after the effective date of retirement, whichever period is shorter. All outstanding
Options not yet vested shall be forfeited.

     7. Termination of Employment for Other Reasons. If the employment of the Participant shall
terminate for any reason other than the reasons set forth in Sections 4 through 6 or Section 9
herein, all previously vested Options shall remain exercisable for a period of three months from
the effective date of termination. Except as set forth in Section 9, the portion of the Options
not yet vested as of the date of termination shall be forfeited. The transfer of

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employment of the Participant between the Company and any affiliate or Subsidiary (or between
affiliates and/or Subsidiaries) shall not be deemed a termination of employment for purposes of
this Award Agreement.

     8. Change in Control. In the event of a Change in Control (as that term is defined in the
Company’s Change in Control Policy), the Participant’s right to exercise these Options shall
immediately vest one hundred percent (100%) as of the first date that the definition of Change in
Control has been fulfilled, and shall remain as such for the remaining term of the Options.

     9. Acceleration of Vesting of Options in the Event of Divestiture of Business Segment. In
the event that the “Business Segment” (as that term is defined in this Section below) in which the
Participant is primarily employed as of the “Divestiture Date” (as that term is defined in this
Section below) is the subject of a “Divestiture of a Business Segment” (as that term is defined in
this Section below), and such divestiture results in the termination of the Participant’s
employment with the Company and its subsidiaries for any reason, the Participant’s right to
exercise the Options subject to this Agreement shall immediately vest and the Options shall become
immediately exercisable as of the Divestiture Date as to that portion of these Options that are not
vested and exercisable as of such date. The Options shall remain exercisable as to all shares
subject thereto for a period of three months after the Divestiture Date.

     For purposes of this Agreement, the term “Business Segment” shall mean a business line which
the Company treats as a separate business segment under the segment reporting rules under generally
accepted accounting principles as used in the United States, which currently includes the
following: Safety and Security Systems, Fire Rescue, Environmental Solutions and Tool. Likewise,
the term “Divestiture Date” shall mean the date that a transaction constituting a Divestiture of a
Business Segment is finally consummated.

     For purposes of this Agreement, the term “Divestiture of a Business Segment” means the
following:

	 	(a)	 	When used with reference to the sale of stock or other
securities of a Business Segment that is or becomes a separate corporation,
limited liability company, partnership or other separate business entity, the
sale, exchange, transfer, distribution or other disposition of the ownership,
either beneficially or of record or both, by the Company or one of its
subsidiaries to “Nonaffiliated Persons” (as that term is defined in this
Section below) of 100% of either (a) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (b) the combined voting
power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment;
	 
	 	(b)	 	When used with reference to the merger or consolidation of a
Business Segment that is or becomes a separate corporation, limited liability

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	 	 	 	company, partnership or other separate business entity, any such transaction
that results in Nonaffiliated Persons owning, either beneficially or of
record or both, 100% of either (a) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (b) the combined
voting power of the then-outstanding voting securities of the Business
Segment entitled to vote generally in the election of the board of directors
or the equivalent governing body of the Business Segment; or
	 
	 	(c)	 	When used with reference to the sale of the assets of the
Business Segment, the sale, exchange, transfer, liquidation, distribution or
other disposition of all or substantially all of the assets of the Business
Segment necessary or required to operate the Business Segment in the manner
that the Business Segment had been operated prior to the Divestiture Date.

     For purposes of this Agreement, the term “Nonaffiliated Persons” shall mean any persons or
business entities which do not control, or which are not controlled by or under common control
with, the Company.

     10. Restrictions on Transfer. Unless determined otherwise by the Committee pursuant to the
terms of the Plan, these Options may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution. Further,
these Options shall be exercisable during the Participant’s lifetime only by the Participant or the
Participant’s legal representative.

     11. Recapitalization. In the event there is any change in the Company’s Shares through the
declaration of stock dividends or through recapitalization resulting in stock split-ups or through
merger, consolidation, exchange of Shares, or otherwise, the Committee may, in its sole discretion,
make such adjustments to these Options that it deems necessary in order to prevent dilution or
enlargement of the Participant’s rights.

     12. Procedure for Exercise of Options. These Options may be exercised by delivery of written
notice to the Company at its executive offices, addressed to the attention of the corporate
secretary. Such notice: (a) shall be signed by the Participant or his or her legal representative;
(b) shall specify the number of Options being exercised and thus the number of full Shares then
elected to be purchased with respect to the Options; and (c) shall be accompanied by payment in
full of the Option Price of the Shares to be purchased, and the Participant’s copy of this Award
Agreement.

     The Option Price upon exercise of these Options shall be payable to the Company in full
either: (a) in cash or its equivalent (acceptable cash equivalents shall be determined at the sole
discretion of the Committee); or (b) by tendering (either by actual delivery or attestation)
previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to
the total Option Price (provided that, except as otherwise determined by the Committee, the Shares
which are tendered must have been held by the Participant for at least six (6) months prior

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to their tender to satisfy the Option Price or have been purchased on the open market); or (c)
by a combination of (a) and (b).

     Subject to the approval of the Committee, the Participant may be permitted to exercise
pursuant to a “cashless exercise” procedure, as permitted under Federal Reserve Board’s Regulation
T, subject to securities law restrictions, or by any other means which the Committee, in its sole
discretion, determines to be consistent with the Plan’s purpose and applicable law.

     The Company shall deliver to the Participant evidence of book entry Shares, or upon the
Participant’s request, Share certificates in an appropriate amount based upon the number of shares
purchased under the Option. The Company shall maintain a record of all information pertaining to
the Participant’s rights under this Award Agreement, including the number of Shares for which the
Options are exercisable. If all of the Options granted pursuant to this Award Agreement have been
exercised, this Award Agreement shall be returned to the Company and canceled.

     13. Beneficiary Designation. The Participant may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under this Award
Agreement is to be paid in case of his or her death before he or she receives any or all of such
benefit. Each such designation shall revoke all prior designations by the Participant, shall be in
a form prescribed by the Company, and will be effective only when filed by the Participant in
writing with the Secretary of the Company during the Participant’s lifetime. In the absence of any
such designation, benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate.

     Beneficiary Designation (name, address, and relationship):

	 	 	 
	 

	 	 

	 

	 	 

	 

	 	 

     14. Rights as a Stockholder. The Participant shall have no rights as a stockholder of the
Company with respect to the Shares subject to this Award Agreement until such time as the option
purchase price has been paid, and the Shares have been issued and delivered to him or her.

     15. Continuation of Employment. This Award Agreement shall not confer upon the Participant
any right to continuation of employment by the Company, nor shall this Award Agreement interfere in
any way with the Company’s right to terminate the Participant’s employment at any time.

     16. Entire Award; Modification

     This Award Agreement and the Plan constitutes the entire agreement between the parties with
respect to the terms and supersede all prior or written or oral negotiations, commitments,

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representations and agreements with respect thereto. The terms and conditions set forth in
this Award Agreement may only be modified or amended in writing, signed by both parties.

     17. Severability

     In the event any one or more of the provisions of this Award Agreement shall be held invalid,
illegal or unenforceable in any respect in any jurisdiction, such provision or provisions shall be
automatically deemed amended, but only to the extent necessary to render such provision or
provisions valid, legal and enforceable in such jurisdiction, and the validity, legality and
enforceability of the remaining provisions of this Award Agreement shall not in any way be affected
or impaired thereby.

     18. Miscellaneous.

	 	(a)	 	This Award Agreement and the rights of the Participant
hereunder are subject to all the terms and conditions of the Plan, as the same
may be amended from time to time, as well as to such rules and regulations as
the Committee may adopt for administration of the Plan. The Committee shall
have the right to impose such restrictions on any Shares acquired pursuant to
these Options, as it may deem advisable, including, without limitation,
restrictions under applicable federal securities laws, under applicable federal
and state tax law, under the requirements of any stock exchange or market upon
which such Shares are then listed and/or traded, and under any blue sky or
state securities laws applicable to such Shares.
	 
	 	 	 	It is expressly understood that the Committee is authorized to administer,
construe, and make all determinations necessary or appropriate to the
administration of the Plan and this Award Agreement, all of which shall be
binding upon the Participant.
	 
	 	(b)	 	The Committee may terminate, amend, or modify the Plan;
provided, however, that no such termination, amendment, or modification of the
Plan may in any material way adversely affect the Participant’s vested rights
under this Award Agreement, without the written consent of the Participant.
	 
	 	(c)	 	The Company shall have the power and the right to deduct or
withhold, or require the Participant to remit to the Company, an amount
sufficient to satisfy federal, state, and local taxes (including the
Participant’s FICA obligation), domestic or foreign, required by law to be
withheld with respect to any exercise of the Participant’s rights under this
Award Agreement.
	 
	 	 	 	The Participant may elect, subject to any procedural rules adopted by the
Committee, to satisfy the minimum statutory withholding requirement, in
whole or in part, by having the Company withhold Shares having an aggregate
Fair Market Value on the date the tax is to be determined, equal to such
minimum statutory withholding tax.

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	 	(d)	 	The Participant agrees to take all steps necessary to comply
with all applicable provisions of federal and state securities and tax laws in
exercising his or her rights under this Award Agreement.
	 
	 	(e)	 	This Award Agreement shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.
	 
	 	(f)	 	All obligations of the Company under the Plan and this Award
Agreement, with respect to these Options, shall be binding on any successor to
the Company, whether the existence of such successor is the result of a direct
or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.
	 
	 	(g)	 	The Participant agrees to execute this agreement and return it
to the address below within 45 days of receipt of this agreement or forfeit the
awarded stock options.

Federal Signal Corporation

1415
W.
22nd Street

Oak Brook, Illinois 60521

	 	(h)	 	To the extent not preempted by federal law, this Award
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Delaware.

     IN WITNESS WHEREOF, the parties have caused this Award Agreement to be executed as of the Date of
Grant.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Federal Signal Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Participant:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

7

 

Federal Signal Corporation

2005 Executive Incentive Compensation Plan

Performance Based Restricted Stock Unit — Award Agreement

     You have been selected to receive a grant of Performance Based Restricted Stock Units pursuant
to the Federal Signal Corporation 2005 Executive Incentive Compensation Plan (the “Plan”), as
specified below:

	 	 	 	 	 	 	 	 
	 	    Employee:	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	    Date of Grant:	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	    Performance Based Restricted Stock Units Granted:	 	 	 	 
	 	 	 	 	 	 

	 	 
	 	    Performance Period: January 1, 2008 through December 31, 2010	 	 

     This Award shall be subject to the terms and conditions prescribed in the Federal Signal
Corporation 2005 Executive Incentive Compensation Plan and in the Federal Signal Corporation
Performance Based Restricted Stock Unit Award Agreement No. 2008 attached hereto.

This document constitutes part of the prospectus covering

securities that have been registered under the Securities Act of 1933.

     IN WITNESS WHEREOF, the parties have caused this Award Agreement to be executed on this
                     day of                                         .

FEDERAL SIGNAL CORPORATION

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

“Employee”
	 	 

1

 

FEDERAL SIGNAL CORPORATION

PERFORMANCE BASED RESTRICTED STOCK UNIT

AWARD AGREEMENT NO. 2008

     The Company established the Federal Signal Corporation 2005 Executive Incentive Compensation
Plan (the “Plan”) pursuant to which options, stock appreciation rights, restricted stock and stock
units and performance shares covering an aggregate of 4,000,000 shares of the Stock of the Company
may be granted to employees and directors of the Company and its subsidiaries;

     The Board of Directors of the Company, and the Administrator of the Plan appointed by the
Board of Directors, has determined that the interests of the Company will be advanced by
encouraging and enabling certain of its employees to own shares of the common stock of the Company,
and that Employee is one of those employees;

          NOW, THEREFORE, in consideration of services rendered and the mutual covenants herein
contained, the parties agree as follows:

Section 1. Definitions

          As used in this Agreement, the following terms shall have the following meanings:

          A. “Award” means the award provided for in Section 2.

          B. “Board of Directors” means the Board of Directors of the Company.

          C. “Change in Control” shall have the meaning ascribed to such term in the Company’s Change in
Control Policy.

          D. “Date of Award” of Performance Based Restricted Stock Units means the date set forth on the
Award instrument applicable those Units.

          E. “Employee” means the individual shown as the recipient of an award of Performance Based
Restricted Stock Units, as set forth on the Award instrument applicable those Units.

          F. “Performance Based Restricted Stock Unit” means the obligation of the Company to transfer
the number of shares of Stock to Employee prescribed in Section 2, at the time provided in Section
5 of this Agreement, provided such Performance Based Restricted Stock Unit is vested at such time.

          G. “Performance Period” means the three consecutive calendar year period set forth in the
Award instrument.

2

 

          H. “Permanent Disability” means Employee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than twelve
months.

          I. “Stock” means the common stock of the Company.

          J. “Subsidiary” means any corporation, other than the Company, in an unbroken chain of
corporations beginning with the Company if, at the relevant date, each of the corporations, other
than the last corporation in the unbroken chain, owns stock possessing fifty percent or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain.

          K. “Vesting Date” means the date specified in Section 3.

Section 2. Award

     Subject to the terms of this Agreement, the Company awarded to Employee the number of
Performance Based Restricted Stock Units set forth on the Award instrument applicable those Units,
effective as of the Date of Award set forth on such instrument.

     A Performance Based Restricted Stock Unit Award entitles the Employee to receive a whole
number of shares of Stock equal to a percentage, from zero to two hundred percent, based on the
Total Shareholder Return during the Performance Period, of the number of Performance Based
Restricted Stock Units that are subject to the Award, as described in this Section.

     If the Company’s Peer Percentile Rank is less than 25%, the Employee shall be entitled to
receive no shares with respect to the Performance Based Restricted Stock Units subject to the
Award.

     If the Company’s Peer Percentile Rank is at least 25% but less than 50%, the Employee shall be
entitled to receive shares equal to 25% percent of the Performance Based Restricted Stock Units
subject to the Award, plus three additional percent of the Performance Based Restricted Stock Units
subject to the Award for each whole percent of the Company’s Peer Percentile Rank above 25% (for a
total of 100% if the Company’s Peer Percentile Rank is 50%).

     If the Company’s Peer Percentile Rank is at least 50% but less than 75%, the Employee shall be
entitled to receive shares equal to 100% percent of the Performance Based Restricted Stock Units
subject to the Award, plus two additional percent of the Performance Based Restricted Stock Units
subject to the Award for each whole percent of the Company’s Peer Percentile Rank above 50% (for a
total of 150% if the Company’s Peer Percentile Rank is 75%).

     If the Company’s Peer Percentile Rank is at least 75% but less than 90%, the Employee shall be
entitled to receive shares equal to 150% percent of the Performance Based Restricted Stock Units
subject to the Award, plus three and one-third additional percent of the Performance Based
Restricted Stock Units subject to the Award for each whole percent of the Company’s

3

 

Peer Percentile Rank above 75% (rounded up to the nearest whole percent) (for a total of 200% if
the Company’s Peer Percentile Rank is 90% or more).

     If the Company’s Peer Percentile Rank is 90% or more, the Employee shall be entitled to
receive 200% percent of the Performance Based Restricted Stock Units subject to the Award.

     For example, if the Company’s Peer Percentile Rank is 40%, the Employee shall be entitled to
receive shares equal to 70% of the Performance Based Restricted Stock Units subject to the Award;
and if the Company’s Peer Percentile Rank is 60%, the Employee shall be entitled to receive shares
equal to 120% of the Performance Based Restricted Stock Units subject to the Award.

     The Company’s Peer Percentile Rank shall be determined by dividing the number of corporations
in the Peer Group with a lower Total Shareholder Return (“TSR”) than the Company’s TSR, by thirty
(the total number of corporations in the Peer Group) (rounded up to the nearest whole percent),
where:

	 	(a)	 	The Peer Group of corporations is attached as Exhibit A;
	 
	 	(b)	 	TSR of a corporation means the sum of its Change in Stock Price plus dividends
paid by the corporation during the Performance Period, divided by its Beginning Stock
Price;
	 
	 	(c)	 	Change in Stock Price means the difference between the Ending Stock Price and
the Beginning Stock Price;
	 
	 	(d)	 	Beginning Stock Price means the closing price of the shares of the corporation
on the last business day immediately preceding the first day of the Performance Period;
and
	 
	 	(e)	 	Ending Stock Price means the closing price of the shares of the corporation on
the last business day of the Performance Period.

     For example, if the TSR of the Company was higher than the TSR of twenty of the thirty
corporations in the Peer Group, its Peer Percentile Rank would be 67%, and Employee would be
entitled to receive shares equal to 134% of the number of Performance Based Restricted Stock Units
subject to the Award.

     This grant of Performance Based Restricted Stock Units shall not confer any right to the
Employee (or any other Employee) to be granted Performance Based Restricted Stock Units or other
Awards in the future under the Plan.

Section 3. Bookkeeping Account

     The Company shall record the number of Performance Based Restricted Stock Units granted
hereunder to a bookkeeping account for Employee (the “Performance Based Restricted Stock Unit
Account”). Employee’s Performance Based Restricted Stock Unit Account shall be

4

 

debited by the number of Performance Based Restricted Stock Units, if any, forfeited in accordance
with Section 4 and by the number of Performance Based Restricted Stock Units with respect to which
shares of Stock were transferred to Employee in accordance with Section 5.

Section 4. Vesting

     Subject to the accelerated vesting provisions provided below, the Performance Based Restricted
Stock Units subject to the Award shall vest on the last day of the Performance Period, if Employee
remains employed by the Company or its Subsidiaries through such date.

     If, during the Performance Period, the Employee dies or terminates employment on account of
his Permanent Disability, the Performance Based Restricted Stock Units subject to the Award shall
be fully vested immediately.

     The Performance Based Restricted Stock Units subject to the Award also shall be fully vested
upon the occurrence of a Change in Control during the Performance Period or upon the occurrence of
the event(s) described in Section 4.1 below.

     In the event of the termination of employment of Employee with the Company and its
Subsidiaries for any other reason before the end of the Performance Period, all Performance Based
Restricted Stock Units that are not vested at the time of such termination of employment normally
shall be forfeited.

			
	Section 4.1	 	Acceleration of Vesting of Shares in the Event of Divestiture of Business Segment

     In the event that the “Business Segment” (as that term is defined in this Section below) in
which the Employee is primarily employed as of the “Divestiture Date” (as that term is defined in
this Section below) is the subject of a “Divestiture of a Business Segment” (as that term is
defined in this Section below), and such divestiture results in the termination of the Employee’s
employment with the Company and its subsidiaries for any reason, the Performance Based Restricted
Stock Units subject to the Award shall be fully vested.

     For purposes of this Agreement, the term “Business Segment” shall mean a business line which
the Company treats as a separate business segment under the segment reporting rules under generally
accepted accounting principles as used in the United States, which currently includes the
following: Safety and Security Systems, Fire Rescue, Environmental Solutions and Tool. Likewise,
the term “Divestiture Date” shall mean the date that a transaction constituting a Divestiture of a
Business Segment is finally consummated.

     For purposes of this Agreement, the term “Divestiture of a Business Segment” means the
following:

	 	(a)	 	When used with reference to the sale of stock or other
securities of a Business Segment that is or becomes a separate corporation,
limited liability company, partnership or other separate business entity, the
sale,

5

 

	 	 	 	exchange, transfer, distribution or other disposition of the ownership,
either beneficially or of record or both, by the Company or one of its
subsidiaries to “Nonaffiliated Persons” (as that term is defined in this
Section below) of 100% of either (i) the then-outstanding common stock (or
the equivalent equity interests) of the Business Segment or (ii) the
combined voting power of the then-outstanding voting securities of the
Business Segment entitled to vote generally in the election of the board of
directors or the equivalent governing body of the Business Segment;

	 	(b)	 	When used with reference to the merger or consolidation of a
Business Segment that is or becomes a separate corporation, limited liability
company, partnership or other separate business entity, any such transaction
that results in Nonaffiliated Persons owning, either beneficially or of record
or both, 100% of either (i) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (ii) the combined
voting power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment; or
	 
	 	(c)	 	When used with reference to the sale of the assets of the
Business Segment, the sale, exchange, transfer, liquidation, distribution or
other disposition of all or substantially all of the assets of the Business
Segment necessary or required to operate the Business Segment in the manner
that the Business Segment had been operated prior to the Divestiture Date.

Section 5. Distribution of Shares

     Subject to the provisions below (including a pro rata reduction in the number of shares
payable in the event of an early termination of employment or Change in Control), the number of
shares of Stock earned in accordance with Section 2, determined as of the end of the Performance
Period, with respect to Performance Based Restricted Stock Units that become vested in accordance
with Section 3, shall become distributable as of the end of the Performance Period (regardless of
whether the shares vest earlier).

     If, during the Performance Period, the Employee dies or terminates employment on account of
Permanent Disability, the number of shares of Stock that otherwise would be earned in accordance
with Section 2 shall be prorated based on the number of days during the Performance Period that the
Employee remained employed. Such number of shares of Stock shall become distributable as of the
end of the Performance Period (regardless of whether the shares vest earlier).

     If a Change in Control occurs during the Performance Period, notwithstanding anything in this
Agreement to the contrary, a number of shares equal to 100% percent of the Performance Based
Restricted Stock Units subject to the Award prorated based on the number of days during the
Performance Period before the date of the Change in Control shall become distributable on the date
of the Change in Control.

6

 

     Such shares shall be distributed as soon as administratively feasible after the date
prescribed above; but no later than two and one-half months after the end of the calendar year in
which the specified date occurs.

Section 6. Shareholder Rights

     Employee shall not have any of the rights of a shareholder of the Company with respect to
Performance Based Restricted Stock Units, such as the right to vote or the right to dividends.

Section 7. Death Benefits

     Shares payable on account of death of an Employee during the Performance Period shall be
transferred to the Employee’s Beneficiary or Beneficiaries as soon as practical after the end of
the Performance Period (regardless of whether the shares vest earlier), but no later than two and
one-half months after the end of the calendar year in which the Performance Period ends.

     Employee may designate a Beneficiary or Beneficiaries (contingently, consecutively, or
successively) of such death benefit and, from time to time, may change his or her designated
Beneficiary. A Beneficiary may be a trust. A beneficiary designation shall be made in writing in
a form prescribed by the Company and delivered to the Company while the Participant is alive. If
there is no designated Beneficiary surviving at the death of a Participant, payment of any death
benefit of the Participant shall be made to the persons and in the proportions which any death
benefit under the Federal Signal Corporation Employees’ Profit Sharing and Savings Plan is or would
be payable.

Section 8. Units Non-Transferable

     Performance Based Restricted Stock Units awarded hereunder shall not be transferable by
Employee. Except as may be required by the federal income tax withholding provisions of the Code
or by the tax laws of any State, the interests of Employee and his Beneficiaries under this
Agreement are not subject to the claims of their creditors and may not be voluntarily or
involuntarily sold, transferred, alienated, assigned, pledged, anticipated, or encumbered. Any
attempt by Employee or a Beneficiary to sell, transfer, alienate, assign, pledge, anticipate,
encumber, charge or otherwise dispose of any right to benefits payable hereunder shall be void.

Section 9. Adjustment in Certain Events

     If there is any change in the Stock by reason of stock dividends, split-ups, mergers,
consolidations, reorganizations, combinations or exchanges of shares or the like, the number of
Performance Based Restricted Stock Units credited to Employee’s Performance Based Restricted Stock
Unit Account shall be adjusted appropriately so that the number of Performance Based Restricted
Stock Units credited to Employee’s Performance Based Restricted Stock Unit Account after such an
event shall equal the number of shares of Stock a shareholder would own after such an event if the
shareholder, at the time such an event occurred, had owned shares of Stock equal to the number of
Performance Based Restricted

7

 

Stock Units credited to Employee’s Performance Based Restricted Stock Unit Account immediately
before such an event.

Section 10. Tax Withholding

     The Company shall not be obligated to transfer any shares of Stock until Employee pays to the
Company or a Subsidiary in cash, or any other form of property, including Stock, acceptable to the
Company, the amount required to be withheld from the wages of Employee with respect to such
shares. Employee may elect to have such withholding satisfied by a reduction of the number of
shares otherwise transferable under this Agreement at such time, such reduction to be calculated
based on the closing market price of the Stock on the day Employee gives written notice of such
election to the Company.

Section 11. Source of Payment

     Shares of Stock transferable to Employee, or his Beneficiary, under this Agreement may be
either Treasury shares, authorized but unissued shares, or any combination of such stock. The
Company shall have no duties to segregate or set aside any assets to secure Employee’s right to
receive shares of Stock under this Agreement. Employee shall not have any rights with respect to
transfer of shares of Stock under this Agreement other than the unsecured right to receive shares
of Stock from the Company.

Section 12. Continuation of Employment

     This Award Agreement shall not confer upon the Employee any right to continuation of
employment by the Company, nor shall this Award Agreement interfere in any way with the Company’s
right to terminate the Employee’s employment at any time.

Section 13. Amendment

     This Agreement may be amended by mutual consent of the parties hereto by written agreement.

Section 14. Governing Law

     This Agreement shall be construed and administered in accordance with the laws of the State
of Illinois.

8

 

FEDERAL SIGNAL CORPORATION

PERFORMANCE BASED RESTRICTED STOCK UNIT

BENEFICIARY DESIGNATION

	 	 	 	 	 	 	 
	Employee:

	 	 	 	Social Security No.:	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Date of Birth: 	 	 
	 

	 	 
	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

     Employee hereby designates the following individual(s) or entity(ies) as his or her
beneficiary(ies) pursuant to Federal Signal Corporation 2006 Equity Incentive Plan (Insert Name,
Social Security Number, Relationship, Date of Birth and Address of Individuals and/or fully
identify any trust beneficiary by the Name of the Trust, Date of Execution of the Trust, the
Trustee’s Name, the address of the trust, and the employer identification number of the trust):

Primary Beneficiary(ies)

      

      

Contingent Beneficiary(ies)

      

      

The Participant hereby reserves the right to change this Beneficiary Designation, and any such
change shall be effective when the Participant has executed a new or amended Beneficiary
Designation form, and the receipt of such form has been acknowledged by the Corporation, all in
such manner as specified by the Corporation from time to time, or on a future date specified by any
such new or amended Beneficiary Designation form.

     IN WITNESS WHEREAS, the Participant has executed this Beneficiary Designation on the date
designated below.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	,	 	 	 	 	 	 	 
	 

	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Signature of Employee
	 
	 	 	 	 	 	 	 	 	 	 
	Received:
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Federal Signal Corporation
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	,	 	 	 	By:	 	 
	 

	 

	 	 		 	 	 	 	 
 

9

 

EXHIBIT A

TSR Peer Group

A.O. Smith Corporation

Ametek, Inc.

BorgWarner Inc.

Briggs & Stratton Corporation

Caterpillar Inc.

Cooper Industries, Inc.

Cummins, Inc.

Deere & Company

Dover Corporation

Eaton Corporation

Emerson Electric Co.

Honeywell International Inc.

Hubbell Incorporated

Illinois Tool Works Inc.

Ingersoll-Rand Company

Johnson Controls, Inc.

L-3 Communications Corporation

Motorola, Inc.

Oshkosh Truck Corporation

PACCAR Inc.

Parker Hannifin Corporation

Raytheon Company

Sauer-Danfoss Inc.

Teleflex Incorporated

Tennant Company

Thomas & Betts Corporation

The Timken Company

Valmont Industries, Inc.

Woodward Governor Company

Worthington Industries, Inc.

10

 

Federal Signal Corporation

2005 Executive Incentive Compensation Plan

Restricted Stock Unit — Award Agreement

     You have been selected to receive a grant of Restricted Stock Units pursuant to the Federal
Signal Corporation 2005 Executive Incentive Compensation Plan (the “Plan”), as specified below:

	 	 	 	 	 	 	 	 
	 	    Participant:	 	 	 	 	 	 
	 	 	 	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 	    Date of Grant:	 	 	 	 	 	 
	 	 	 	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 	    Number of
Restricted Stock Units Granted:  
 

     This Award shall be subject to the terms and conditions prescribed in the Federal Signal
Corporation 2005 Executive Incentive Compensation Plan and in the Federal Signal Corporation
Restricted Stock Unit Award Agreement No. 2008 attached hereto.

This document constitutes part of the prospectus covering

securities that have been registered under the Securities Act of 1933.

     IN WITNESS WHEREOF, the parties have caused this Award Agreement to be executed on this
                     day of                                         .

	 	 	 	 	 	 	 
	 	 	FEDERAL SIGNAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	“Company”	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	“Participant”	 	 

 

 

FEDERAL SIGNAL CORPORATION

RESTRICTED STOCK UNIT

AWARD AGREEMENT NO. 2008

     Federal Signal Corporation (the “Company”) established the Federal Signal Corporation 2005
Executive Incentive Compensation Plan (the “Plan”) pursuant to which options, stock appreciation
rights, restricted stock and stock units and performance shares covering an aggregate of 4,000,000
shares of the Stock of the Company may be granted to Participants and directors of the Company and
its subsidiaries;

     The Board of Directors of the Company, and the Administrator of the Plan appointed by the
Board of Directors, has determined that the interests of the Company will be advanced by
encouraging and enabling certain of its employees to own shares of the common stock of the Company,
and that Participant is one of those employees;

          NOW, THEREFORE, in consideration of services rendered and the mutual covenants herein
contained, the parties agree as follows:

Section 1. Definitions

          As used in this Agreement, the following terms shall have the following meanings:

          A. “Award” means the award provided for in Section 2.

          B. “Board of Directors” means the Board of Directors of the Company.

          C. “Change in Control” shall have the meaning ascribed to that term in the Company’s Change in
Control Policy.

          D. “Date of Award” of Restricted Stock Units means the date set forth on the Award instrument
applicable those Units.

          E. “Participant” means the individual shown as the recipient of an award of Restricted Stock
Units, as set forth on the Award instrument applicable those Units.

          F. “Permanent Disability” means Participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than twelve
months.

          G. “Restricted Stock Unit” means the obligation of the Company to transfer one share of Stock
to Participant at the time provided in Section 6 of this Agreement, provided such Restricted Stock
Unit is vested at such time.

          H. “Stock” means the common stock of the Company.

          I. “Subsidiary” means any corporation, other than the Company, in an unbroken chain of
corporations beginning with the Company if, at the relevant date, each of the corporations, other
than the last corporation in the unbroken chain, owns stock possessing fifty

- 2 -

 

percent or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

          J. “Vesting Date” means the date prescribed in Section 4.

Section 2. Award

     Subject to the terms of this Agreement, the Company awarded to Participant the number of
Restricted Stock Units set forth on the Award instrument applicable those Units, effective as of
the Date of Award set forth on such instrument.

     This grant of Restricted Stock Units shall not confer any right to the Participant (or any
other Participant) to be granted Restricted Stock Units or other Awards in the future under the
Plan.

Section 3. Bookkeeping Account

     The Company shall record the number of Restricted Stock Units granted hereunder to a
bookkeeping account for Participant (the “Restricted Stock Unit Account”). Participant’s
Restricted Stock Unit Account shall be debited by the number of Restricted Stock Units, if any,
forfeited in accordance with Section 4 and by the number of shares of Stock transferred to
Participant in accordance with Section 6 with respect to such Restricted Stock Units.
Participant’s Restricted Stock Units also shall be adjusted from time to time for stock dividend,
stock splits and other such transactions in accordance with Section 10.

Section 4. Vesting

     Subject to the accelerated vesting provisions provided below, the Restricted Stock Units shall
vest on the third anniversary of the Date of Award, if Participant remains employed by the Company
or its Subsidiaries through such date.

     In the event Participant dies while employed, or terminates employment on account of his
Permanent Disability before the third anniversary of the Date of Award, all of the Restricted Stock
Units granted pursuant to Section 2 shall be fully vested immediately. Restricted Stock Units also
shall be fully vested upon the occurrence of a Change in Control.

     In the event of the termination of employment of Participant with the Company and its
Subsidiaries for any other reason before the third anniversary of the Date of Award, all Restricted
Stock Units that are not vested at the time of such termination of employment normally shall be
forfeited.

Section 5. Acceleration of Vesting in the Event of Divestiture of Business Segment

     In the event that the “Business Segment” (as that term is defined in this Section below) in
which the Participant is primarily employed as of the “Divestiture Date” (as that term is defined
in this Section below) is the subject of a “Divestiture of a Business Segment” (as that term is
defined in this Section below), and such divestiture results in the termination of the
Participant’s

- 3 -

 

employment with the Company and its subsidiaries for any reason, the Restricted Stock Units shall
be fully vested.

     For purposes of this Agreement, the term “Business Segment” shall mean a business line which
the Company treats as a separate business segment under the segment reporting rules under generally
accepted accounting principles as used in the United States, which currently includes the
following: Safety and Security Systems, Fire Rescue, Environmental Solutions and Tool. Likewise,
the term “Divestiture Date” shall mean the date that a transaction constituting a Divestiture of a
Business Segment is finally consummated.

     For purposes of this Agreement, the term “Divestiture of a Business Segment” means the
following:

	 	(a)	 	When used with reference to the sale of stock or other
securities of a Business Segment that is or becomes a separate corporation,
limited liability company, partnership or other separate business entity, the
sale, exchange, transfer, distribution or other disposition of the ownership,
either beneficially or of record or both, by the Company or one of its
subsidiaries to “Nonaffiliated Persons” (as that term is defined in this
Section below) of 100% of either (i) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (ii) the combined
voting power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment;
	 
	 	(b)	 	When used with reference to the merger or consolidation of a
Business Segment that is or becomes a separate corporation, limited liability
company, partnership or other separate business entity, any such transaction
that results in Nonaffiliated Persons owning, either beneficially or of record
or both, 100% of either (i) the then-outstanding common stock (or the
equivalent equity interests) of the Business Segment or (ii) the combined
voting power of the then-outstanding voting securities of the Business Segment
entitled to vote generally in the election of the board of directors or the
equivalent governing body of the Business Segment; or
	 
	 	(c)	 	When used with reference to the sale of the assets of the
Business Segment, the sale, exchange, transfer, liquidation, distribution or
other disposition of all or substantially all of the assets of the Business
Segment necessary or required to operate the Business Segment in the manner
that the Business Segment had been operated prior to the Divestiture Date.

     For purposes of this Agreement, the term “Nonaffiliated Persons” shall mean any persons or
business entities which do not control, or which are not controlled by or under common control
with, the Company.

- 4 -

 

Section 6. Distribution of Shares

     Subject to the provisions below, shares of Stock equal to the number of Restricted Stock Units
credited to the Restricted Stock Unit Account of Participant shall become distributable on the
Vesting Date prescribed above.

     Such shares shall be distributed as soon as administratively feasible after the date
prescribed above; but no later two and one-half months after the end of the calendar year in which
the specified date occurs.

Section 7. Shareholder Rights

     Participant shall not have any of the rights of a shareholder of the Company with respect to
Restricted Stock Units, such as the right to vote or the right to dividends.

Section 8. Death Benefits

     In the event of the death of Participant, as soon as practical after the death of
Participant, the Company shall transfer shares equal in number to the vested Restricted Stock
Units, if any, credited to Participant’s Restricted Stock Unit Account to Participant’s
Beneficiary or Beneficiaries; but no later than two and one-half months after the end of the
calendar year in which the death of the Participant occurs.

     Participant may designate a Beneficiary or Beneficiaries (contingently, consecutively, or
successively) of such death benefit and, from time to time, may change his or her designated
Beneficiary. A Beneficiary may be a trust. A beneficiary designation shall be made in writing in
a form prescribed by the Company and delivered to the Company while the Participant is alive. If
there is no designated Beneficiary surviving at the death of a Participant, payment of any death
benefit of the Participant shall be made to the persons and in the proportions which any death
benefit under the Federal Signal Corporation Participants’ Profit Sharing and Savings Plan is or
would be payable.

Section 9. Units Non-Transferable

     Restricted Stock Units awarded hereunder shall not be transferable by Participant. Except as
may be required by the federal income tax withholding provisions of the Code or by the tax laws of
any State or foreign sovereign, the interests of Participant and his Beneficiaries under this
Agreement are not subject to the claims of their creditors and may not be voluntarily or
involuntarily sold, transferred, alienated, assigned, pledged, anticipated, or encumbered. Any
attempt by Participant or a Beneficiary to sell, transfer, alienate, assign, pledge, anticipate,
encumber, charge or otherwise dispose of any right to benefits payable hereunder shall be void.

Section 10. Adjustment in Certain Events

     If there is any change in the Stock by reason of stock dividends, split-ups, mergers,
consolidations, reorganizations, combinations or exchanges of shares or the like, the number of
Restricted Stock Units credited to Participant’s Restricted Stock Unit Account shall be adjusted
appropriately so that the number of Restricted Stock Units credited to Participant’s Restricted
Stock Unit Account after such an event shall equal the number of shares of Stock a shareholder
would own after such an event if the shareholder, at the time such an event occurred, had owned

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shares of Stock equal to the number of Restricted Stock Units credited to Participant’s Restricted
Stock Unit Account immediately before such an event.

Section 11. Tax Withholding

     The Company shall not be obligated to transfer any shares of Stock until Participant pays to
the Company or a Subsidiary in cash, or any other form of property, including Stock, acceptable to
the Company, the amount required to be withheld from the wages of Participant with respect to such
shares. Participant may elect to have such withholding satisfied by a reduction of the number of
shares otherwise transferable under this Agreement at such time, such reduction to be calculated
based on the closing market price of the Stock on the day Participant gives written notice of such
election to the Company.

Section 12. Source of Payment

     Shares of Stock transferable to Participant, or his Beneficiary, under this Agreement may be
either Treasury shares, authorized but unissued shares, or any combination of such stock. The
Company shall have no duties to segregate or set aside any assets to secure Participant’s right to
receive shares of Stock under this Agreement. Participant shall not have any rights with respect
to transfer of shares of Stock under this Agreement other than the unsecured right to receive
shares of Stock from the Company.

Section 13. Continuation of Employment

     This Award Agreement shall not confer upon the Participant any right to continuation of
employment by the Company, nor shall this Award Agreement interfere in any way with the Company’s
right to terminate the Participant’s employment at any time.

Section 14. Amendment

     This Agreement may be amended by mutual consent of the parties hereto by written agreement.

Section 15. Governing Law

     This Agreement shall be construed and administered in accordance with the laws of the State
of Illinois.

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FEDERAL SIGNAL CORPORATION

RESTRICTED STOCK UNIT

BENEFICIARY DESIGNATION

	 	 	 	 	 	 	 
	Participant:

	 	 	 	Social Security No.:	 	 
	 

	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 	 	Date of Birth:	 	 
	 

	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

     Participant hereby designates the following individual(s) or entity(ies) as his or her
beneficiary(ies) pursuant to Federal Signal Corporation 2005 Equity Incentive Plan (Insert Name,
Social Security Number, Relationship, Date of Birth and Address of Individuals and/or fully
identify any trust beneficiary by the Name of the Trust, Date of Execution of the Trust, the
Trustee’s Name, the address of the trust, and the employer identification number of the trust):

Primary Beneficiary(ies)

      

      

Contingent Beneficiary(ies)

      

      

The Participant hereby reserves the right to change this Beneficiary Designation, and any such
change shall be effective when the Participant has executed a new or amended Beneficiary
Designation form, and the receipt of such form has been acknowledged by the Corporation, all in
such manner as specified by the Corporation from time to time, or on a future date specified by any
such new or amended Beneficiary Designation form.

     IN WITNESS WHEREAS, the Participant has executed this Beneficiary Designation on the date
designated below.

	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	,	 	 	 
	 

	 
	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	Signature of Participant
	 
	 	 	 	 	 	 	 	 	 
	Received:

	 	 	 	 	 	 	 	 	Federal Signal Corporation
	 
	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 		,	 	  By:	 
	 

	 
	 	 	 	 	 

- 7 -exv10wmm

EXHIBIT
MM

FIRST AMENDMENT 

OF THE

FEDERAL SIGNAL CORPORATION SAVINGS RESTORATION PLAN

          WHEREAS, Federal Signal Corporation (the “Company”) maintains the Federal Signal Corporation
Savings Restoration Plan (the “Plan”) for the benefit of certain of its employees; and

          WHEREAS, the Plan provides in Section 12 for the amendment of the Plan by the Benefits
Planning Committee; and

          WHEREAS, the Company has agreed to provide for a notional contribution to the Plan for William
H. Osborne (“Osborne”) in the amount of $200,000 and in the same amount of $200,000 on each
anniversary of Osborne’s employment date for the next nine years provided he is employed by the
Company on such anniversary date; and

          WHEREAS, it is deemed advisable and in the best interest of the Company that the following
amendment to the Plan be adopted, to reflect the notional contribution for Osborne as described
above;

          NOW, THEREFORE, the Plan is hereby amended, effective as of September 15, 2008, by adding the
following new Supplement B to the Plan, immediately following Supplement A thereof, in the form
attached hereto.

* * *

[signatures follow on next page]

 

 

     IN WITNESS WHEREOF, this Amendment has been executed by the Benefits Planning Committee on
behalf of the Company, this                day of                     , 2008.

	 	 	 
	 

	 	FEDERAL SIGNAL CORPORATION 

BENEFITS PLANNING COMMITTEE
	 
	 	 
	 

	 	 
	 

	 	Interim President and Chief Executive Officer,

James E. Goodwin
	 
	 	 
	 

	 	 
	 

	 	Sr. Vice President and Chief Financial Officer, 

Stephanie K. Kushner
	 
	 	 
	 

	 	 
	 

	 	Sr. Vice President and General Counsel, 

Jennifer L. Sherman
	 
	 	 
	 

	 	 
	 

	 	Vice President and Controller,

David E. Janek
	 
	 	 
	 

	 	 
	 

	 	Vice President—Human Resources, SSG,

Guy T. Wernet
	 
	 	 
	 

	 	 
	 

	 	Vice President—Human Resources, ESG,

Julie A. Cook

- 2 -

 

SUPPLEMENT B

Special Contributions for William H. Osborne

     B-1. Special Contributions. Beginning in Plan Year 2008 and for each of the nine
Plan years thereafter, the Company shall make a Special Contribution to the Company Contribution
Account of William H. Osborne (“Osborne”) under this Plan in the amount of $200,000 for 2008, and
an additional $200,000 per year for the next nine years beginning in 2009 and ending in 2017. Such
Special Contributions shall be made in the manner determined by the Committee and on the
anniversary of the date of Osborne’s employment with the Company (September 15, 2008), and each
Plan Year’s Special Contribution shall be made to the Plan only in the event that Osborne is
employed on the anniversary of his date of hire; i.e., September 15 of the applicable Plan Year, as
President and Chief Executive Officer of Federal Signal Corporation.

     B-2. Vesting of Special Contributions. Each Special Contribution shall be vested
over a three-year period at the rate of one-third of the applicable amount in each year as of the
anniversary date of Osborne’s first date of employment with the Company, so that each Special
Contribution shall be 33-1/3% vested on September 15 of the year following the year of
contribution, 66-2/3% vested on September 15 of the second year following the year of contribution,
and 100% vested on September 15 of the third year following the year of contribution.

     B-3. Other Provisions of the Plan Applicable. All other provisions of the Plan are
applicable to Special Contributions made under this Supplement B.

- 3 -

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