Document:

Exhibit 4.8

Exhibit 4.8

	 	 	 
	MEMORANDUM OF AGREEMENT

Dated: September 10, 2009

	 	Norwegian Shipbrokers’ Association’s Memo-

randum of Agreement for sale and purchase of ships.

Adopted by The Baltic and International Maritime 

Council (BIMCO) in 1956.
Code-name

SALEFORM 1993

Revised 1966, 1983 and 1986/87.
	 
	 

Petrojarl Varg AS of Beddingen 16, N-7014 Trondheim, Norway hereinafter called the Sellers, have
agreed to sell, and VARG L.L.C. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Marshall Islands MH9696
hereinafter called the Buyers, have agreed to buy

Name: Petrojarl VARG

Classification Society/Class: Det Norske Veritas / +1A1 Oil Production and Storage Vessel (N),
POSMOOR ATA, CRANE, HELDK, ECO

	 	 	 
	Built: 1998, Sibu (MYS)

	 	By: Far East Levingston Shipyard
	 
	 	 
	Flag: Bahamas

	 	Place of Registration: Nassau
	 
	 	 
	Call Sign: C6QT4

	 	Grt/Nrt: 52296 / 42495
	 
	 	 
	Register Number: 8763309

	 	IMO No.: 8763309

hereinafter called the Vessel, on the following terms and conditions:

Definitions

“Banking days” are days on which banks are open both in the country of the currency stipulated for
the Purchase Price in Clause 1 and in the place of closing stipulated in Clause 8.

“In writing” or “written” means a letter handed over from the Sellers to the Buyers or vice versa,
a registered letter, telex, telefax, email or other modern form of written communication.

“Classification Society” or “Class” means the Society referred to in line 4.

1. Purchase Price Three Hundred and Twenty Million United States Dollars (US$ 320,000,000)

2. Deposit

As security for the correct fulfillment of this Agreement the Buyers shall pay a
deposit of 10% (ten per cent) of the Purchase Price within 5 banking days from the date of this
Agreement. This deposit shall be placed with [Bank details to be inserted – to be mutually agreed]
and held by them in a joint account for the Sellers and the Buyers, to be released in accordance
with joint written instructions of the Sellers and the Buyers. Interest, if any, to be credited to
the Buyers. Any fee charged for holding the said deposit shall be borne equally by the Sellers and
the Buyers. No deposit in requited.

3. Payment

The said Purchase Price shall be paid in full free of bank charges to Bank details to
be inserted the order and direction of the Sellers
on delivery of the Vessel., but not later than 3 banking days after the Vessel is in
every respect physically ready for delivery in accordance with the terms and conditions of this
Agreement and Notice of Readiness has been given in accordance with Clause 5.

4. Inspections

	a)*	 	 The Buyers have inspected and accepted the Vessel’s classification records. The Buyers
have also inspected the Vessel at/in [                    ] on [                    ] and have accepted the
Vessel following this inspection and the sale in outright and definite, subject only to the terms
and conditions of this Agreement. Buyers shall have 45 days from the date of the closing to inspect
the vessel and if any part of the Vessel is found to be
Broken, damaged or defective as of the date of delivery so as to affect the Vessel’s class, such defect(s) shall be made good at the Sellers’
expense to the satisfaction of the Classification Society without condition/recommendation.

This document is a computer generated SALEFORM 1993 form printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the
event of any modification made to the pre-printed text of this document which is not clearly
visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

Copyright: Norwegian Shipbrokers’ Association, Oslo, Norway.

Printed by BIMCO’s idea

 

 

	b)*	 	The Buyers shall have the right to inspect the Vessel’s classification records and
declare whether same are accepted or not within
The Sellers shall provide for inspection of the Vessel at/in
The Buyers shall undertake the inspection without undue delay to the Vessel. Should the Buyers
cause undue delay they shall compensate the Sellers for the losses thereby incurred. The Buyers
shall inspect the Vessel without opening up and without cost to the Sellers. During the inspection,
the Vessel’s deck and engine log books shall be made available for examination by the Buyers. If
the Vessel is accepted after such inspection, the sale shall become outright and definite, subject
only to the terms and conditions of this Agreement, provided the Sellers receive written notice of
acceptance from the Buyers within 72 hours after completion of such inspection.
Should notice of acceptance of the Vessel’s classification records and of the Vessel not be
received by the Sellers as aforesaid, the deposit together with interest earned shall be released
immediately to the Buyers, whereafter this Agreement shall be null and void.

	 
	*	 	4 a) and 4b) are alternatives; delete whichever is not applicable. In the absence of deletions,
alternative 4a) to apply.

5. Notices, time and place of delivery

	a)	 	The Sellers shall keep the Buyers well informed of the Vessel’s itinerary and shall
provide the Buyers with 30, 10, 5,  and 1 days notice of the estimated time of arrival at
the intended place of drydocking/underwater inspection/delivery. When the Vessel is at the
place of delivery and in every respect physically ready for delivery in accordance with
this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for
delivery.

	 
	b)	 	The Vessel shall be delivered and taken over safely afloat at a safe and accessible
berth or anchorage at/in a safe port worldwide or in international waters in the Sellers’ option.

	 
	 	 	Expected time of delivery: [                                        ]

	 
	 	 	Date of cancelling (see
Clauses 5 c), 6 b)  (iii) and  14): [                                        ]

	c)	 	If the Sellers anticipate that, notwithstanding the exercise of due diligence by
them, the Vessel will not be ready for delivery by the cancelling date they may notify
the Buyers in writing stating the date when they anticipate that the Vessel will be
ready for delivery and propose a new cancelling date. Upon receipt of such notification
the Buyers shall have the option of either cancelling this Agreement in accordance
with Clause 14 within 7 running days of receipt of the notice or of accepting the new
date as the new cancelling date. if the Buyers have not declared their option within 7
running days of receipt of the Sellers’ notification or if the Buyers accept the new
date, the date proposed in the Sellers’ notification shall be deemed to be the new
cancelling date and shall be substituted for the cancelling date stipulated in line 61.

	 
	 	 	If this Agreement is maintained with the new cancelling date all other terms and
conditions hereof including those contained in Clauses 5 a ) and 5 c) shall remain
unaltered and in full force and effect. Cancellation or failure to cancel shall be
entirely without prejudice to any claim for damages the Buyers may have under Clause 14
for the Vessel not being ready by the original cancelling date.

	 
	d)	 	Should the Vessel become an actual, constructive or compromised total loss before
delivery the deposit together with interest earned shall be released immediately to the
Buyers whereafter this Agreement shall be null and void.

6. Drydocking/Divers Inspection

	a)** 	 	The Sellers shall place the Vessel in drydock at the port of delivery for inspection by the
Classification Society of the Vessel’s underwater parts below the deepest load line, the extent
of the inspection being in accordance with the Classification Society’s rules. If the rudder,
propeller, bottom or other underwater parts below the deepest load line are found broken,
damaged or defective so as to affect the Vessel’s class, such defects shall be made good at
the Sellers’ expense to the satisfaction of the Classification
Society without condition/recommendation*.

This document is a computer generated SALEFORM 1993 form printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the
event of any modification made to the pre-printed text of this document which is not clearly
visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

	b)**	 	(i) The Vessel is to be delivered without drydocking. However, the Buyers shall have the
right at their expense to arrange for an underwater inspection by a diver approved by the
Classification Society prior to the delivery of the Vessel. The Sellers shall at their cost
make the Vessel available for such inspection. The extent of the inspection and the conditions
under which it is performed shall be to the satisfaction of the Classification Society. If the
conditions at the port of delivery are unsuitable for such inspection, the Sellers shall make
the Vessel available at a suitable alternative place near to the delivery port.

(ii) If the rudder, propeller, bottom or other underwater parts below the deepest load line
are found broken, damaged or defective so as to affect the Vessel’s class, then unless repairs
can be carried out afloat to the satisfaction of the Classification Society, the Sellers shall
arrange for the Vessel to be drydocked at their expense for inspection by the Classification
Society of the Vessel’s underwater parts below the deepest load line, the extent of the
inspection being in accordance with the Classification Society’s rules. If the rudder,
propeller, bottom or other underwater parts below the deepest load line are found broken,
damaged or defective so as to affect the Vessel’s class, such defects shall be made good by
the Sellers at their expense to the satisfaction of the Classification Society without
condition/recommendation*. In such event the Sellers are to pay also for the cost of the
underwater inspection and the Classification Society’s attendance.

(iii) If the Vessel is to be drydocked pursuant to Clause 6 b) (ii) and no suitable
drydocking facilities are available at the port of delivery, the Sellers shall take the Vessel
to a port where suitable drydocking facilities are available, whether within or outside the
delivery range as per Clause 5 b). Once drydocking has taken place the Sellers shall
deliver the Vessel at a port within the delivery range as per Clause 5 b) which shall,
for the purpose of this Clause, become the new port of delivery. In such event the cancelling
date provided for in Clause 5 b)) shall be extended by the additional time required
for the drydocking and extra steaming, but limited to a maximum of 14 running days.

	(c)	 	If the Vessel is drydocked pursuant to Clause 6 a) or 6 b) above

(i) the Classification Society may require survey of the tailshaft system, the extent of the survey
being to the satisfaction of the Classification surveyor. If such survey is not required by the
Classification Society, the Buyers shall have the right to require the tailshaft to be drawn and
surveyed by the Classification Society, the extent of the survey being in accordance with the
Classification Society’s rules for tailshaft survey and consistent with the current stage of the
Vessel’s survey cycle. The Buyers shall declare whether they require the tailshaft to be drawn and
surveyed not later than by the completion of the inspection by the Classification Society. The
drawing and refitting of the tailshaft shall be arranged by the Sellers. Should any parts of the
tailshaft system be condemned or found
defective so as to affect of Vessel’s class, those parts shall be renewed or made good at the
Sellers’ expense to the satisfaction of the Classification Society without
condition/recommendation*.

(ii) the expenses relating to the survey of the tailshaft system shall be borne by the Buyers
unless the Classification Society requires such survey to be carried out, in which case the
Sellers shall pay these expenses. The Sellers shall also pay the expenses if the Buyers
require the survey and parts of the system are condemned or found defective or broken so as to
affect the Vessel’s class*.

(iii) the expenses in connection with putting the Vessel in and taking her out of drydock,
including the drydock dues and the Classification Society’s fees shall be paid by the Sellers
if the Classification Society issues any condition/recommendation* as a result of the survey
or if it requires survey of the tailshaft system. In all other cases the Buyers shall pay the
aforesaid expenses, dues and fees.

(iv) the Buyers’ representative shall have the right to be present in the drydock, but without
interfering with the work or decisions of the Classification surveyor.

(v) the Buyers shall have the right to have the underwater parts of the Vessel cleaned and
painted at their risk and expense without interfering with the Sellers’ or the
Classification surveyor’s work, if any, and without affecting the
Vessel’s timely delivery. If, however, the Buyers’ work in drydock is still in progress when the
Sellers have completed the work which the Sellers are required to do, the additional docking time
needed to complete the Buyers’ work shall be for the Buyers’ risk and expense. In the event that
the Buyers’ work requires such additional time, the Sellers may upon completion of the Sellers’
work tender Notice of Readiness for delivery whilst the Vessel is still in drydock and
the Buyers shall be obliged to take delivery in accordance with Clause 3, whether
 the Vessel is in drydock or not and irrespective of Clause 5 b).

	 	 	 
	*	 	Notes, if any, in the surveyor’s report which are accepted by the Classification Society without
condition/recommendation are not to be taken into account.

	 
	**	 	6 a) and 6 b) are alternatives; delete whichever is not applicable. In the absence of deletions,
alternative 6 a) to apply.

This document is a computer generated SALEFORM 1993 form printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the
event of any modification made to the pre-printed text of this document which is not clearly
visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

7. Spares/bunkers, etc.

The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board and on
shore. All spare parts and spare equipment including spare tail-end shaft(s) and/or spare
propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection used or
unused, whether on board or not shall become the Buyers’ property, but spares on order are to be
excluded. Forwarding charges, if any, shall be for the Buyers’ account. The Sellers are not
required to replace spare parts including spare tail- end shaft(s) and spare
propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to
delivery, but the replaced items shall be the property of the Buyers. The radio installation and
navigational equipment shall be included in the sale without extra payment if they are the property
of the Sellers. Unused stores and provisions shall be included in the sale and be taken over by the
Buyers without extra payment.

The Sellers have the right to take ashore crockery, plates, cutlery, linen and other articles
bearing the Sellers’ flag or name, provided they replace same with similar unmarked items. Library,
forms, etc., exclusively for use in the Sellers’ vessel(s), shall be excluded without compensation.
Captain’s, Officers’ and Crew’s personal belongings including the slop chest are to be excluded from
the sale, as well as the following additional items (including items on hire): [_____]

The Buyers shall take over the remaining bunkers and unused lubricating oils in storage tanks and
sealed drums and pay the current net marketSellers’ last invoice price (excluding barging
expenses) at the port and date within 45 days of delivery of the Vessel.
Payment under this Clause shall be made at the same time and place and in the same currency as the Purchase Price.

8. Documentation

The
place of closing: London, England

In exchange for payment of the Purchase Price the Sellers shall furnish the Buyers with delivery
documents, namely:

	a)	 	Legal Bill of Sale in a form
recordable in Bahamas (the country in which the Buyers
are to register the Vessel) or such other country in Buyers’ option, warranting that the
Vessel is free from all encumbrances, mortgages and maritime liens or any other debts or
claims whatsoever, duly notarially attested and legalized by the consul of such
country or other competent authority.

	b)	 	Current Certificate of Ownership issued by the competent authorities of the flag
state of the Vessel.

	c)	 	Confirmation of Class issued
within 72 24 hours prior to delivery.

	d)	 	Current Certificate issued
by the competent authorities dated not more than one (1)
Banking Day prior to delivery stating that the Vessel is free from registered
encumbrances.

	e)	 	Certificate of Deletion of the Vessel from the Vessel’s registry or other official
evidence of deletion appropriate to the Vessel’s registry at the time of delivery,
or, in the event that the registry does not as a matter of practice issue such
documentation immediately, a written undertaking by the Sellers to effect deletion from
the Vessel’s registry forthwith and furnish a Certificate or other official evidence of
deletion to the Buyers promptly and latest within 4 (four) weeks after the Purchase Price
has been paid and the Vessel has been delivered.

	f)	 	Any such additional documents as may reasonably be required by the competent
authorities for the purpose of registering the Vessel, provided the Buyers notify the
Sellers of any such documents as soon as possible after the date of this Agreement.

At the time of delivery the Buyers and Sellers shall sign and deliver to each other a Protocol
of Delivery and Acceptance confirming the date and time of delivery of the Vessel from the
Sellers to the Buyers.

This document is a computer generated SALEFORM 1993 form printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the
event of any modification made to the pre-printed text of this document which is not clearly
visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

At the time of delivery the Sellers shall hand to the Buyers the classification certificate(s) as
well as all plans etc., which are on board the Vessel. Other certificates which are on board the
Vessel shall also
be handed over to the Buyers unless the Sellers are required to retain same, in
which case the Buyers to have the right to take copies. Other
technical documentation including
drawings and manuals which may be in the Sellers’ possession shall be promptly forwarded to the
Buyers at their expense, if they so request. The Sellers may keep the Vessel’s log books but the
Buyers to have the right to take copies of same.

At the time of delivery, the Sellers shall have furnished the Buyers with the following documents:

g)
resolutions, duly notarially attested and legalized, of the  Board of Directors of the Sellers
authorising the Sellers’ execution and performance of this Agreement and all matters in connection
with the sale and transfer of the Vessel to the Buyers;

h)
original power of attorney, duly notarially attested and legalized, of the Sellers authorising
its appointed representatives to execute all necessary documents in order to sell and transfer the
Vessel to the Buyers;

i) such other documents as
the Buyers may reasonably require to evidence the authority of the
Sellers to make and perform this Agreement and effect the legal transfer of the Vessel, provided
the Buyers notify the Sellers of any such documents as soon as possible after the date of this
Agreement.

9. Encumbrances

The Sellers warrant that the Vessel, at the time of delivery, is free from all charters,
encumbrances, mortgages and maritime liens or any other debts
whatsoever. The Sellers hereby
undertake to indemnify the Buyers against all consequences of claims made against the Vessel which
have been incurred prior to the time of delivery.

10. Taxes, etc.

Any
taxes, fees and expenses in connection with the purchase and registration under the Buyers’
flag shall be for the Buyers’ account, whereas similar charges in connection with the closing of
the Sellers’ register shall be for the Sellers’ account.

11. Condition on delivery

The Vessel with everything
belonging to her shall be at the Sellers’ risk and expense until she is
delivered to the Buyers., but subject to the terms and conditions of this Agreement she shall be
delivered and taken over as she was at the time of inspection, fair
wear and tear excepted. However,
the Vessel shall be delivered with her class maintained without
condition/recommendation*, free of
average damage affecting the Vessel’s class, and with her classification certificates and National/international certificates, as well as all other certificates the Vessel had at the time of
inspection, valid and unextended without condition/recommendation* for a period of at least six (6)
months by Class or the relevant authorities at the time of delivery.
“Inspection” in this clause
11, shall mean the
Buyers’ inspection according to Clause 4 a) or 4 b), if applicable, or the Buyers’ inspection prior
to the signing of this Agreement. If the Vessel is taken over without inspection, the date of this
Agreement shall be the relevant date.

	 	 	 
	*	 	Notes, if any, in the surveyor’s report which are
 accepted by the Classification Society
without condition/recommendation are not to be taken into account.

12. Name/markings

Upon delivery the Buyers undertake
to change the name of the Vessel and alter funnel markings. Upon
delivery the name of the Vessel and the funnel markings shall remain
unchanged.

This document is a computer generated SALEFORM 1993 form printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the
event of any modification made to the pre-printed text of this document which is not clearly
visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

13. Buyers’ default

Should the deposit not be
paid in accordance with Clause 2, the Sellers have the right to cancel this
Agreement, and they shall be entitled to claim compensation for their losses and for all expenses incurred together with interest.
Should the Purchase Price not be paid in accordance with Clause 3, the Sellers have the right to
cancel the Agreement, in which case the deposit together with interest earned shall be released to
the Sellers. If the deposit does not cover their loss,  Tthe Sellers shall be entitled to claim
further compensation for their losses and for all expenses incurred together with interest.

14. Sellers’ default

Should the Sellers fail to give Notice of Readiness in accordance with Clause 5 a) or fail to be
ready to validly complete a legal transfer by the date stipulated in line 61 the Buyers shall have
the option of cancelling this Agreement. provided always that the Sellers shall be granted  a maximum
of 3 banking days after Notice of Readiness has been given to make arrangements for the
documentation set out in Clause 8. If after Notice of Readiness has been given but before the
Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not made
physically ready again in every respect by the date stipulated in line 61 and new Notice of
Readiness given, the Buyers shall retain their option to cancel. In the event that the Buyers elect
to cancel this Agreement the deposit together with interest earned shall be released to them
immediately.
Should the Sellers fail to give Notice of Readiness by the date stipulated in line 61 or fail to be
ready to validly complete a legal transfer as aforesaid they shall make due compensation to the
Buyers for their loss and for all expenses together with interest if their failure is due to proven
negligence and whether or not the Buyers cancel this Agreement.

15. Buyers’ representatives

After this Agreement has been signed by both parties, and the deposit has been lodged, the Buyers
have the right to place two representatives on board the Vessels at their sole risk and expense.
upon arrival at [        ] on or about [        ]
These representatives are on board for the purpose of familiarisation and in the capacity of
observers only, and they shall
not interfere in any respect with the operation of the Vessel. The Buyers’ representatives shall
 sign the Sellers’ letter of indemnity prior to their embarkation.

16. Arbitration

	a)*	 	
This Agreement shall be governed by and construed in accordance with English law and any dispute arising out of this
Agreement shall be referred to arbitration in London in accordance with the Arbitration Acts 1950 and 1979 or any statutory
modification or re-enactment thereof for the time being in force, one arbitrator being appointed by each party. On the
receipt by one party of the nomination in writing of the other party’s arbitrator, that party shall appoint their arbitrator
within fourteen days, failing which the decision of the single arbitrator appointed shall apply. If two arbitrators
properly appointed shall not agree they shall appoint an umpire whose decision shall be final.

	 
	b)*	 	This Agreement shall be governed by and construed in accordance with Title 9 of the United States Code and the Law of the
State of New York and should any dispute arise out of this Agreement, the matter in dispute shall be referred to three
persons at New York, one to be appointed by each of the parties hereto, and the third by the two so chosen; their
 decision
or that  of any of two of them shall be final, and for purpose of enforcing any award, this Agreement may be made a rule of
the Court. The proceedings shall be conducted in accordance with the rules of the Society of Maritime Arbitrators, Inc. New York.

	 
	c)*	 	Any dispute arising out of this Agreement shall be referred to arbitration at the exclusive jurisdiction of the High Court
of England and Wales at London, England, subject to the procedures applicable there. The laws of England and Wales  shall govern this Agreement.

	 	 	 
	*	 	16 a), 16 b) and 16 c) are alternatives; delete whichever is not applicable. In the absence
of deletions,
alternative 16 a) to apply.

This document is a computer generated SALEFORM 1993 from printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the
event of any modification made to the pre-printed text of this document which is not clearly
visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.

 

 

 

17. Confidentiality

This Agreement and any related negotiations and discussions are to be kept strictly private and
confidential between the Buyers and the Sellers and shall not be released or disclosed to any third
party save for the Buyers’ or Sellers’ respective brokers, legal advisors or bankers or where
disclosure is required by law.

	 	 	 
	For and on behalf of

THE SELLERS

	 	For and on behalf of 

THE BUYERS
	 
	 	 
	 

	 	 
	Name:

	 	Name:
	Title:

	 	Title:

This document is a computer generated SALEFORM 1993 form printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly visible. In the
event of any modification made to the pre-printed text of this document which is not clearly
visible, the text of the original approved document shall apply. BIMCO and the Norwegian
Shipbrokers’ Association assume no responsibility for any loss, damage or expense as a result of
discrepancies between the original approved document and this computer generated document.exv10w1

Exhibit 10.1

Federal Signal Corporation

Executive Change-in-Control Severance Agreement Tier 1

     THIS EXECUTIVE CHANGE-IN-CONTROL SEVERANCE AGREEMENT is made, entered into, and is effective
this                      day of                      (hereinafter referred to as the “Effective Date”), by and between
Federal Signal Corporation (the “Company”), a Delaware corporation, and                                                             
(the “Executive”).

     WHEREAS, the Executive is employed by the Company and will develop considerable experience and
knowledge of the business and affairs of the Company concerning its policies, methods, personnel,
and operations; and

     WHEREAS, the Company is desirous of assuring insofar as possible, that it will continue to
have the benefit of the Executive’s services, and the Executive is desirous of having such
assurances; and

     WHEREAS, the Company recognizes that circumstances may arise in which a Change in Control of
the Company occurs, through acquisition or otherwise, thereby causing uncertainty of employment
without regard to the Executive’s competence or past contributions. Such uncertainty may result in
the loss of the valuable services of the Executive to the detriment of the Company and its
shareholders; and

     WHEREAS, both the Company and the Executive are desirous that any proposal for a Change in
Control or acquisition will be considered by the Executive objectively and with reference only to
the business interests of the Company and its shareholders; and

     WHEREAS, the Executive will be in a better position to consider the Company’s best interests
if the Executive is afforded reasonable security, as provided in this Agreement, against altered
conditions of employment which could result from any such Change in Control or acquisition.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
of the parties set forth in this Agreement, and of other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be
legally bound, agree as follows:

  Article 1. Definitions

     Wherever used in this Agreement, the following terms shall have the meanings set forth below
and, when the meaning is intended, the initial letter of the word is capitalized:

	 	(a)	 	“Agreement” means this Executive Change-in-Control Severance Agreement.

	 
	 	(b)	 	“Base Salary” means, at any time, the then regular annual rate of pay which the
Executive is receiving as annual salary, excluding amounts: (i) received under short-term
or long-term incentive or other bonus plans, regardless of whether or not the amounts are
deferred, or (ii) designated by the Company as payment toward reimbursement of expenses.

	 
	 	(c)	 	“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of
the General Rules and Regulations under the Exchange Act.

	 
	 	(d)	 	“Board” means the Board of Directors of the Company.

	 
	 	(e)	 	“Cause” shall be determined solely by the Committee in the exercise of good faith
and reasonable judgment, and shall mean the occurrence of any one or more of the
following:

	 	(i)	 	The Executive’s willful and continued failure to substantially
perform his duties with the Company (other than any such failure resulting from
the Executive’s Disability), after a

1

 

	 	 	 	written demand for substantial performance
is delivered to the Executive that specifically identifies the manner in which
the Committee believes that the Executive has not substantially performed his
duties, and the Executive has failed to remedy the situation within fifteen (15)
business days of such written notice from the Company; or

	 	(ii)	 	The Executive’s conviction of a felony; or

	 
	 	(iii)	 	The Executive’s willful engaging in conduct that is demonstrably and
materially injurious to the Company, monetarily or otherwise. However, no act or
failure to act on the Executive’s part shall be deemed “willful” unless done, or
omitted to be done, by the Executive not in good faith and without reasonable
belief that the action or omission was in the best interests of the Company.

	 	(f)	 	“Change in Control” of the Company shall mean the occurrence of any one (1) or more
of the following events:

	 	(i)	 	Any Person (other than the Company, or any corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company, and any trustee or
other fiduciary holding securities under an employee benefit plan of the Company
or such proportionately owned corporation), is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing forty percent
(40%) or more of the combined voting power of the Company’s then outstanding
securities;

	 
	 	(ii)	 	During any period of not more than twenty-four (24) consecutive
months, individuals who at the beginning of such period constitute the Board of
Directors of the Company, and any new director whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute at least
a majority thereof;

	 
	 	(iii)	 	The consummation of a merger or consolidation of the Company with
any other corporation, other than: (i) a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than sixty percent
(60%) of the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation; or
(ii) a merger or consolidation effected to implement a recapitalization of the
Company (or similar transaction) in which no Person acquires more than forty
percent (40%) of the combined voting power of the Company’s then outstanding
securities; or

	 
	 	(iv)	 	The Company’s stockholders approve a plan or an agreement for the
sale or disposition by the Company of all or substantially all of the Company’s
assets (or any transaction or series of transactions having a similar effect).

	 	(g)	 	“Code” means the Internal Revenue Code of 1986, as amended.

	 
	 	(h)	 	“Committee” means the Compensation Committee of the Board of Directors of the
Company, or, if no Compensation Committee exists, then the full Board of Directors of the
Company, or a committee of Board members, as appointed by the full Board to administer
this Agreement.

2

 

	 	(i)	 	“Company” means Federal Signal Corporation, a Delaware corporation (including any
and all subsidiaries), or any successor thereto as provided in Article 9 herein.

	 
	 	(j)	 	“Disability” or “Disabled” shall have the meaning ascribed to such term in the
Executive’s governing long-term disability plan, or if no such plan exists, means
entitled to receive Social Security disability benefits.

	 
	 	(k)	 	“Effective Date” means the date this Agreement is approved by the Board, or such
other date as the Board shall designate in its resolution approving this Agreement, and
as specified in the opening sentence of this Agreement.

	 
	 	(l)	 	“Effective Date of Termination” means the date on which a Qualifying Termination
occurs, as provided in Section 2.2 herein, which triggers the payment of Severance
Benefits hereunder.

	 
	 	(m)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.

	 
	 	(n)	 	“Good Reason” means, without the Executive’s express written consent, the
occurrence after a Change in Control of the Company of any one (1) or more of the
following, which results in a material negative change in the Executive’s employment
relationship with the Company:

	 	(i)	 	The assignment of the Executive to duties materially inconsistent
with the Executive’s authorities, duties, responsibilities, and status
(including offices, titles, and reporting requirements) as an executive and/or
officer of the Company, or a material reduction or alteration in the nature or
status of the Executive’s authorities, duties, or responsibilities from those in
effect as of ninety (90) calendar days prior to the Change in Control, other
than an insubstantial and inadvertent act that is remedied by the Company
promptly after receipt of notice thereof given by the Executive;

	 
	 	(ii)	 	The Company’s requiring the Executive to be based at a location in
excess of fifty (50) miles from the location of the Executive’s principal job
location or office immediately prior to the Change in Control; except for
required travel on the Company’s business to an extent substantially consistent
with the Executive’s then present business travel obligations;

	 
	 	(iii)	 	A reduction by the Company of the Executive’s Base Salary in effect
on the Effective Date hereof, or as the same shall be increased from time to time;

	 
	 	(iv)	 	The failure of the Company to continue in effect any of the
Company’s short- and long-term incentive compensation plans, or employee benefit
or retirement plans, policies, practices, or other compensation arrangements in
which the Executive participates unless such failure to continue the plan,
policy, practice, or arrangement pertains to all plan participants generally; or
the failure by the Company to continue the Executive’s participation therein on
substantially the same basis, both in terms of the amount of benefits provided
and the level of the Executive’s participation relative to other participants, as
existed immediately prior to the Change in Control of the Company;

	 
	 	(v)	 	The failure of the Company to obtain a satisfactory agreement from
any successor to the Company to assume and agree to perform the Company’s
obligations under this Agreement, as contemplated in Article 9 herein; and

	 
	 	(vi)	 	A material breach of this Agreement by the Company which is not
remedied by the Company within thirty (30) business days of receipt of written
notice of such breach delivered by the Executive to the Company.

3

 

	 	 	 	Unless the Executive becomes Disabled, the Executive’s right to terminate employment
for Good Reason shall not be affected by the Executive’s incapacity due to physical or
mental illness.. Executive must notify the Company within ninety (90) days of the
existence of the Good Reason condition, and the Company shall have thirty (30) days to
remedy the conditions.

	 	(o)	 	“Notice of Termination” shall mean a written notice which shall indicate the
specific termination provision in this Agreement relied upon, and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination
of the Executive’s employment under the provision so indicated.

	 
	 	(p)	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the
Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined
in Section 13(d).

	 
	 	(q)	 	“Qualifying Termination” means the Executive’s separation from service (as defined
in Section 409A of the Code and the applicable regulations) due to any of the events
described in Section 2.2 herein, the occurrence of which triggers the payment of
Severance Benefits hereunder.

	 
	 	(r)	 	“Severance Benefits” mean the payment of severance compensation as provided in
Section 2.3 herein.

  Article 2. Severance Benefits

     2.1 Right to Severance Benefits. The Executive shall be entitled to receive from the Company
Severance Benefits as described in Section 2.3 herein, if there has been a Change in Control of the
Company and, if within twenty-four (24) calendar months thereafter the Executive’s employment with
the Company shall end for any reason specified in Section 2.2 herein as being a Qualifying
Termination.

     The Executive shall not be entitled to receive Severance Benefits if he is terminated for
Cause, or if his employment with the Company ends due to death, Disability, or a voluntary
termination of employment for reasons other than as specified in Section 2.2(b) herein.

     No Executive shall be entitled to receive duplicative severance benefits under any other
Company-related plans or programs if benefits are triggered hereunder.

     2.2 Qualifying Termination. The Executive’s separation from service (as defined in Section
409A of the Code and applicable regulations) within twenty-four (24) calendar months after a Change
in Control of the Company shall constitute a Qualifying Termination and shall trigger the payment
of Severance Benefits to the Executive under this Agreement under the following circumstances:

	 	(a)	 	The Company’s involuntary termination of the Executive’s employment
without Cause; and

	 
	 	(b)	 	The Executive’s voluntary employment termination for Good Reason.

     For purposes of this Agreement, a Qualifying Termination shall not include a termination of
employment by reason of death, Disability, or the Executive’s voluntary termination for reasons
other than as specified in Section 2.2(b) herein, or the Company’s involuntary termination for
Cause.

     2.3 Description of Severance Benefits. In the event the Executive becomes entitled to receive
Severance Benefits, as provided in Sections 2.1 and 2.2 herein, the Company shall pay to the
Executive and
provide him with the following Severance Benefits, subject to the limitations set forth in
Section 5.1 herein:

	 	(a)	 	Upon a Qualifying Termination, a lump-sum amount equal to the
Executive’s accrued but unpaid Base Salary, accrued vacation pay, unreimbursed
business expenses, and all other items earned by and owed to the Executive through
and including the Effective Date of Termination.

4

 

	 	(b)	 	Upon a Qualifying Termination, a lump-sum amount equal to the
Executive’s then current annual target bonus opportunity, established under the
annual bonus plan in which the Executive is then participating, for the bonus
plan year in which the Executive’s Effective Date of Termination occurs,
multiplied by a fraction the numerator of which is the number of full completed
months in the year from January 1 through the Effective Date of Termination, and
the denominator of which is twelve (12). This payment will be in lieu of any
other payment to be made to the Executive under the annual bonus plan in which
the Executive is then participating for the plan year.

	 
	 	(c)	 	Upon a Qualifying Termination, a lump-sum amount equal to 1.99
multiplied by the sum of the following: (i) the higher of: (A) the Executive’s
annual rate of Base Salary in effect upon the Effective Date of Termination, or
(B) the Executive’s annual rate of Base Salary in effect on the date of the Change
in Control; and (ii) the Executive’s annual target bonus opportunity established
under the annual bonus plan in which the Executive is then participating for the
bonus plan year in which the Executive’s Effective Date of Termination occurs.

	 
	 	(d)	 	Upon a Qualifying Termination, a lump-sum amount equal to one (1)
multiplied by the sum of the following: (i) the higher of: (A) the Executive’s
annual rate of Base Salary in effect upon the Effective Date of Termination, or
(B) the Executive’s annual rate of Base Salary in effect on the date of the Change
in Control; and (ii) the Executive’s annual target bonus opportunity established
under the annual bonus plan in which the Executive is then participating for the
bonus plan year in which the Executive’s Effective Date of Termination occurs.
Such amount shall be in consideration for the Executive entering into a noncompete
agreement as described in Article 4 herein.

	 
	 	(e)	 	Upon a Qualifying Termination, vesting and cash-out of any and all
outstanding cash-based long-term incentive awards held by the Executive, as
granted to the Executive by the Company as a component of the Executive’s
compensation. The cash-out shall be in a lump-sum amount equal to the target award
level established for each award, multiplied by a fraction the numerator of which
is the full number of completed days in the preestablished performance period as
of the Effective Date of termination, and the denominator of which is the full
number of days in the entire performance period (i.e., typically thirty-six (36)
months). This payment will be in lieu of any other payment to be made to the
Executive under these long-term performance-based award plans.

	 
	 	(f)	 	Upon the occurrence of a Change in Control, an immediate full vesting
and lapse of all restrictions on any and all outstanding equity-based long-term
incentives, including but not limited to stock options and restricted stock awards
held by the Executive. This provision shall override any conflicting language
contained in the Executive’s respective award agreements.

	 
	 	(g)	 	Upon the occurrence of a Change in Control, the Company shall, as
soon as possible, but in no event longer than thirty (30) calendar days following
the occurrence of a Change in Control, make an irrevocable contribution to the
then current trust in effect for purposes of holding assets to assist the Company
in satisfying its liabilities under
the Federal Signal Corporation Supplemental Savings and Investment Plan (the
“Deferred Compensation Plan”) or successor thereto in an amount that is
sufficient (taking into account the trust assets, if any, resulting from prior
contributions) to fund the trust in an amount equal to but no less than one
hundred percent (100%) of the amount necessary to pay the Executive the
benefits to which such Executive would be entitled pursuant to the terms of the
aforementioned Deferred Compensation Plan.

	 
	 	(h)	 	Upon a Qualifying Termination, continuation for thirty-six
(36) months of the Executive’s medical insurance coverage. The benefit shall be
provided by the Company to the Executive beginning immediately upon the Effective
Date of Termination. Such benefit shall be provided to the Executive at the same
coverage level and cost to the Executive as in effect immediately

5

 

	 	 	 	prior to the Executive’s Effective Date of Termination. Any COBRA health benefit continuation
coverage provided to Executive shall run concurrently with the aforementioned
thirty-six (36) month period.

	 
	 	 	 	     The value of such medical insurance coverage shall be treated as taxable
income to Executive to the extent necessary to comply with Sections 105(h) and
409A of the Code. For purposes of 409A of the Code, any payments of continued
health benefits that are made during the applicable COBRA continuation period
(even if the Executive does not actually receive COBRA coverage for the entire
applicable period), are exempt from the requirements of Code Section 409A
pursuant to Treasury Regulation Section 1.409A-1(b)(9)(v)(B). The right to
continue coverage beyond the applicable COBRA continuation period is not subject
to liquidation or exchange for another benefit. Notwithstanding the above, this
medical insurance benefit shall be discontinued prior to the end of the stated
continuation period in the event the Executive receives a substantially similar
benefit from a subsequent employer, as determined solely by the Committee in
good faith. For purposes of enforcing this offset provision, the Executive shall
be deemed to have a duty to keep the Company informed as to the terms and
conditions of any subsequent employment and any corresponding benefit earned
from such employment, and shall provide, or cause to provide, to the Company in
writing correct, complete, and timely information concerning the same.

     2.4 Termination for Total and Permanent Disability. Following a Change in Control, if the
Executive’s employment is terminated with the Company due to Disability, the Executive’s benefits
shall be determined in accordance with the Company’s retirement, insurance, and other applicable
plans and programs then in effect.

     2.5 Termination for Death. Following a Change in Control, if the Executive’s employment with
the Company is terminated by reason of his death, the Executive’s benefits shall be determined in
accordance with the Company’s retirement, survivor’s benefits, insurance, and other applicable
programs then in effect.

     2.6 Termination for Cause or by the Executive Other Than for Good Reason. Following a Change
in Control, if the Executive has a separation from service (as defined in Section 409A of the Code
and the applicable regulations) either due to: (i) termination by the Company for Cause; or (ii)
voluntary termination by the Executive for reasons other than as specified in Section 2.2(b)
herein, the Company shall pay the Executive his accrued but unpaid Base Salary at the rate
then in effect, accrued vacation, and other items earned by and owed to the Executive through the
Executive’s separation from service, plus all other amounts to which the Executive is entitled
under any compensation plans of the Company at the time such payments are due, and the Company
shall have no further obligations to the Executive under this Agreement.

     2.7 Notice of Termination. Any termination of the Executive’s employment by the Company for
Cause or by the Executive for Good Reason shall be communicated by Notice of Termination to the
other party.

  Article 3. Form and Timing of Severance Benefits

     3.1 Form and Timing of Severance Benefits. The Severance Benefits described in Sections
2.3(a), 2.3(b), 2.3(c), 2.3(d), and 2.3(e) herein shall be paid in cash to the Executive in a
single lump sum as soon as practicable following the Effective Date of Termination, but in no event
beyond ten (10) calendar days from such date.

     3.2. Internal Revenue Code Section 409A. The Plan is intended to comply with the American Jobs
Creation Act of 2004, Code Section 409A, and related guidance.

     (a) Notwithstanding anything to the contrary set forth in this Agreement, any
Severance Benefits paid (i) within 2-1/2 months of the end of the Company’s taxable year containing
the Executive’s severance from employment, or (ii) within 2-1/2 months of the Executive’s taxable
year containing the severance from employment shall be exempt from the requirements of Section 409A
of the Code, and shall be paid in accordance with this Article 3. Severance Benefits subject to
this Section 3.2(a) shall be treated and shall be deemed to be an entitlement to a separate payment
within the meaning of Section 409A of the Code and the regulations thereunder.

6

 

     (b) To the extent Severance Benefits are not exempt from Section 409A under Section 3.2(a)
above, any Benefits paid in the first 6 months following the Executive’s severance from employment
that are equal to or less than the lesser of the amounts described in Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(1) and (2) shall be exempt from Section 409A and shall be paid in accordance
with this Article 3. Severance Benefits subject to this Section 3.2(b) shall be treated and shall
be deemed to be an entitlement to a separate payment within the meaning of Section 409A of the Code
and the regulations thereunder.

     (c) To the extent Severance Benefits are not exempt from Section 409A under Sections 3.2(a) or
(b) above, any Benefits paid equal to or less than the applicable dollar amount under Section
402(g)(1)(B) of the Code for the year of severance from employment shall be exempt from Section
409A in accordance with Treasury Regulation Section 1.409A-1(b)(9)(v)(D) and shall be paid in
accordance with this Article 3. Severance Benefits subject to this Section 3.2(c) shall be treated
and shall be deemed to be an entitlement to a separate payment within the meaning of Section 409A
of the Code and the regulations thereunder.

     (d) To the extent Severance Benefits are not exempt from Section 409A pursuant to Sections
3.2(a), (b) or (c) above, and to the extent the Executive is a “specified employee” (as defined
below), payments due to the Executive under Section 6 shall begin no sooner than six months after
the Executive’s severance from employment (other than for Death) ; provided, however, that any
payments not made during the six (6) month period described in this Section 3.2(d) due to the
6-month delay period required under Treasury Regulation Section 1.409A-3(i)(2) shall be made in a
single lump sum as soon as administratively practicable after the expiration of such six (6) month
period, with interest thereon , and the balance of all other payments required under this Agreement
shall be made as otherwise scheduled in this Agreement.  Notwithstanding anything herein to
the contrary, and subject to Code Section 409A, to the extent the following rules should apply to
the Executive in connection with payments made hereunder, payment shall not be made or commence as
a result of the Executive’s Effective Date of Termination to any Executive who is a key employee
(defined below) before the date that is not less than six months after the Executive’s Effective
Date of Termination. For this purpose, a key employee includes a “specified employee” (as defined
in Code Section 409A(a)(2)(B)) during the entire 12-month period determined by the Company ending
with the annual date upon which key employees are identified by the Company, and also including any
Executive identified by the Company in good faith with respect to any distribution as belonging to
the group of identified key employees, to a maximum of 200 such key employees, regardless of
whether such Executive is subsequently determined by the Company, any governmental agency, or a
court not to be a key employee. The identification date for determining key employees shall be
each December 31 (and the new key employee list shall be updated and effective each subsequent
April 1).

     (e) For purposes of this Section 3.2, any reference to severance of employment or termination
of employment shall mean a “separation from service” as defined in Treasury Reg. Section
1.409A-1(h). For purposes of this Agreement, the term “specified employee” shall have the meaning
set forth in Treasury Reg. Section 1.409A-1(i). The determination of whether the Executive is a “specified employee”
shall be made by the Company in good faith applying the applicable Treasury regulations.

     3.3 Withholding of Taxes. The Company shall withhold from any amounts payable under this
Agreement all federal, state, city, or other taxes as legally shall be required.

  Article 4. Noncompetition and Confidentiality

     In the event of a Change in Control, as provided in Article 1 paragraph (f) herein, the
following shall apply:

	 	(a)	 	Noncompetition. During the term of this Agreement and, if longer, for a period of
eighteen (18) months after the Effective Date of Termination, the Executive shall not:
(i) directly or indirectly act in concert or conspire with any person employed by the
Company in order to engage in or prepare to engage in or to have a financial or other
interest in any business or any activity which he knows (or reasonably should have known)
to be directly competitive with the business of the Company as then being carried on; or
(ii) serve as an employee, agent, partner, shareholder, director or consultant for, or in
any other capacity participate, engage, or have a financial or other interest in any
business or any activity which he knows (or reasonably should have known) to be directly
competitive with the business of the Company as then being carried on (provided, however,
that notwithstanding anything

7

 

	 	 	 	to the contrary contained in this Agreement, the Executive
may own up to two percent (2%) of the outstanding shares of the capital stock of a
company whose securities are registered under Section 12 of the Securities Exchange Act
of 1934).

	 	(b)	 	Confidentiality. The Company has advised the Executive and the Executive
acknowledges that it is the policy of the Company to maintain as secret and confidential
all Protected Information (as defined below), and that Protected Information has been and
will be developed at substantial cost and effort to the Company. All Protected
Information shall remain confidential permanently and no Executive shall at any time,
directly or indirectly, divulge, furnish, or make accessible to any person, firm,
corporation, association, or other entity (otherwise than as may be required in the
regular course of the Executive’s employment with the Company), nor use in any manner,
either during the term of employment or after termination, at any time, for any reason,
any Protected Information, or cause any such information of the Company to enter the
public domain.

	 
	 	 	 	For purposes of this Agreement, “Protected Information” means trade secrets,
confidential and proprietary business information of the Company, and any other
information of the Company, including, but not limited to, customer lists (including
potential customers), sources of supply, processes, plans, materials, pricing
information, internal memoranda, marketing plans, internal policies, and products and
services which may be developed from time to time by the Company and its agents or
employees, including the Executive; provided, however, that information that is in the
public domain (other than as a result of a breach of this Agreement), approved for
release by the Company or lawfully obtained from third parties who are not bound by a
confidentiality agreement with the Company, is not Protected Information.

	 
	 	(c)	 	Nonsolicitation. During the term of this Agreement and, if longer, for a period of
eighteen (18) months after the Effective Date of Termination, the Executive shall not
employ or retain or solicit for employment or arrange to have any other person, firm, or
other entity employ or retain or solicit for employment or otherwise participate in the
employment or retention of any person who is an employee or consultant of the Company.

	 
	 	(d)	 	Cooperation. Executive agrees to cooperate with the Company and its attorneys in
connection with any and all lawsuits, claims, investigations, or similar proceedings that
have been or could be asserted at any time arising out of or related in any way to
Executive’s employment by the Company or any of its subsidiaries.

	 
	 	(e)	 	Nondisparagement. At all times, the Executive agrees not to disparage the Company
or otherwise make comments harmful to the Company’s reputation.

	 
	 	(f)	 	Judicial Interpretation. It is expressly understood and agreed that although
Executive and the Company consider the restrictions contained in this Section to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that any restriction contained in this Agreement is an unenforceable
restriction against Executive, the provisions of this Agreement shall not be rendered
void but shall be deemed amended to apply to the maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court of
competent jurisdiction finds that any restriction contained in this Agreement is
unenforceable, and such restriction cannot be amended so as to make it enforceable, such
finding shall not affect the enforceability of any of the other restrictions contained
herein.

	 
	 	(g)	 	Injunctive Relief and Additional Remedy. The Executive acknowledges that the injury
that would be suffered by the Company as a result of a breach of the provisions of this
Agreement would be irreparable and that an award of monetary damages to the Company for
such a breach would be an inadequate remedy. Consequently, the Company will have the
right, in addition to any other rights it may have, to obtain injunctive relief to
restrain any breach or threatened breach or otherwise to specifically enforce any
provision of this Agreement, and the Company will not be obligated to post bond or other
security in seeking such relief. Without limiting the Company’s rights under this Article

8

 

	 	 	 	or any other remedies of the Company, if the Executive breaches any of the provisions of
this Article, the Company will have the right to recover any amounts paid to the
Executive under subsection 2.3(d) of this Agreement.

  Article 5. Reduction of Severance Benefits in the Event of an Excise Tax Due

     5.1 Events Triggering Reduction of Severance Benefits. If any portion of the Severance
Benefits or any other payment under this Agreement, or under any other agreement with, or plan of
the Company (in the aggregate, “Total Payments”) would constitute an “excess parachute payment,”
such that a golden parachute excise tax is due, the Company will make no additional payments to the
Executive to cover the cost of such excise tax (a “Gross-Up Payment”) and the aggregate amount of
Severance Payments payable to the Executive under this Agreement, or any other agreement with or
plan of the Company, shall be reduced to the largest amount which would both (i) not cause any
excise tax to be payable by the Executive, and (ii) not cause any of the Severance Payments to
become nondeductible by the Company by reason of Section 280G of the Code (or any successor
provision thereto).

     For purposes of this Agreement, the term “excess parachute payment” shall have the meaning
assigned to such term in Section 280G of the Code, and the term “excise tax” shall mean the tax
imposed on such excess parachute payment pursuant to Sections 280G and 4999 of the Code.

     5.2 Procedures in the Event of a Reduction in Severance Benefits. If there is a determination
that the Severance Benefits payable to the Executive must be reduced pursuant to Section 5.1, the
Company shall promptly give the Executive notice to that effect and a copy of the detailed
calculation thereof and of the amount that must be reduced. The Executive may then elect, at the
Executive’s sole discretion, which and how much of the various Severance Benefits shall be
eliminated or reduced as long as after the Execuitive’s election the aggregate present value of the
Severance Benefits equals the largest amount that would both (i) not cause any excise tax to be
payable by the Executive, and (ii) not cause any Severance Payment to become nondeductible by the
Company by reason of Section 280G of the Code (or any successor provision thereto). The Executive
will advise the Company in writing of the Executive’s election under this Section 5.2 within ten
(10) days of the Executive’s receipt of the notice under this Section 5.2 from the Company. If no
election is made by the Executive within the ten-day period, the Company may election which and how
much of the Severance Benefits shall be eliminated or reduced as long as after the Company’s
election the aggregate present value of the Severance Payments equals the largest amount that would
both (i) not cause any excise tax to be paid by the Executive, and (ii) not cause and Severance
Payments to become nondeductible by the Company by reason of Section 289G of the Code (or any
successor provision thereof). For purposes of this Section 5.2, present value shall be
determined in accordance with Section 280G(d)(4) of the Code.

  Article 6. The Company’s Payment Obligation

     6.1 Payment Obligations Absolute. The Company’s obligation to make the payments and the
arrangements provided for herein shall be absolute and unconditional, and shall not be affected by
any circumstances including, without limitation, any offset, counterclaim, recoupment, defense, or
other right which the Company may have against the Executive or anyone else. All amounts payable by
the Company hereunder shall be paid without notice or demand. Each and every payment made hereunder
by the Company shall be final, and the Company shall not seek to recover all or any part of such
payment from the Executive or from whomsoever may be entitled thereto, for any reasons whatsoever.

     The Executive shall not be obligated to seek other employment in mitigation of the amounts
payable or arrangements made under any provision of this Agreement, and the obtaining of any such
other employment shall in no event effect any reduction of the Company’s obligations to make the
payments and arrangements required to be made under this Agreement, except to the extent provided
in Section 2.3(h) herein.

     6.2 Contractual Rights to Benefits. This Agreement establishes and vests in the Executive a
contractual right to the benefits to which he is entitled hereunder. However, nothing herein
contained shall require or be deemed to require, or prohibit or be deemed to prohibit, the Company
to segregate, earmark, or otherwise set aside any funds or other assets, in trust or otherwise, to
provide for any payments to be made or required hereunder, except to the extent provided in Section
2.3(g) herein.

9

 

  Article 7. Term of Agreement

     This Agreement will commence on the Effective Date and shall continue in effect for three (3)
full years. However, at the end of such three (3) year period and, if extended, at the end of each
additional year thereafter, the term of this Agreement shall be extended automatically for one (1)
additional year, unless either party delivers written notice six (6) months prior to the end of
such term, or extended term, stating that the Agreement will not be extended. In such case, the
Agreement will terminate at the end of the term, or extended term, then in progress.

     However, in the event of a Change in Control of the Company, the term of this Agreement shall
automatically be extended for two (2) years from the date of the Change in Control.

  Article 8. Dispute Resolution

     Any dispute or controversy between the parties arising under or in connection with this
Agreement shall be settled by arbitration.

     The arbitration proceeding shall be conducted before a panel of three (3) arbitrators sitting
in a location selected by the Executive within fifty (50) miles from the location of the
Executive’s principal place of employment, in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the award of the arbitrators in any court
having competent jurisdiction.

     All expenses of such litigation or arbitration, including the reasonable fees and expenses of
the legal representative for the Executive, and necessary costs and disbursements incurred as a
result of such dispute or legal proceeding, and any prejudgment interest, shall be borne by the
Company.

  Article 9. Successors

     9.1 Successors to the Company. The Company shall require any successor (whether direct or
indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock,
liquidation, or otherwise) of all or a significant portion of the assets of the Company by
agreement, in form and substance satisfactory to the Executive, to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the Company would be required
to perform if no such succession had taken place. Regardless of whether such agreement is executed,
this Agreement shall be binding upon any
successor in accordance with the operation of law and such successor shall be deemed the
“Company” for purposes of this Agreement.

     9.2 Assignment by the Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and legatees. If the Executive dies while any amount
would still be payable to him hereunder had he continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the
Executive’s beneficiary designated under the Company’s life insurance plan, or, if there is no such
beneficiary, to the Executive’s devisee, legatee, or other designee, or if there is no such
designee, to the Executive’s estate.

  Article 10. Miscellaneous

     10.1 Employment Status. This Agreement is not, and nothing herein shall be deemed to create,
an employment contract between the Executive and the Company or any of its subsidiaries. The
Executive acknowledges that the rights of the Company remain wholly intact to change or reduce at
any time and from time to time his compensation, title, responsibilities, location, and all other
aspects of the employment relationship, or to discharge him prior to a Change in Control (subject
to such discharge possibly being considered a Qualifying Termination pursuant to Section 2.2).

     10.2 Entire Agreement. This Agreement contains the entire understanding of the Company and the
Executive with respect to the subject matter hereof. In addition, the payments provided for under
this Agreement in the event of the Executive’s termination of employment shall be in lieu of any
severance benefits payable under any severance plan, program, or policy of the Company to which he
might otherwise be entitled.

     10.3 Notices. All notices, requests, demands, and other communications hereunder shall be
sufficient if in writing and shall be deemed to have been duly given if delivered by hand or if
sent by registered or certified mail to

10

 

the Executive at the last address he has filed in writing
with the Company or, in the case of the Company, at its principal offices.

     10.4 Execution in Counterparts. This Agreement may be executed by the parties hereto in
counterparts, each of which shall be deemed to be original, but all such counterparts shall
constitute one and the same instrument, and all signatures need not appear on any one counterpart.

     10.5 Conflicting Agreements. This Agreement completely supersedes any and all prior
change-in-control agreements or understandings, oral or written, entered into by and between the
Company and the Executive, with respect to the subject matter hereof, and all amendments thereto,
in their entirety. Further, the Executive hereby represents and warrants to the Company that his
entering into this Agreement, and the obligations and duties undertaken by him hereunder, will not
conflict with, constitute a breach of, or otherwise violate the terms of, any other employment or
other agreement to which he is a party, except to the extent any such conflict, breach, or
violation under any such agreement has been disclosed to the Board in writing in advance of the
signing of this Agreement.

     Notwithstanding any other provisions of this Agreement to the contrary, if there is any
inconsistency between the terms and provisions of this Agreement and the terms and provisions of
Company-sponsored compensation and welfare plans and programs, the Agreement’s terms and provisions
shall completely supersede and replace the conflicting terms of the Company-sponsored compensation
and welfare plans and programs, where applicable.

     10.6 Severability. In the event any provision of this Agreement shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision
had not been included. Further, the captions of this Agreement are not part of the provisions
hereof and shall have no force and effect.

     Notwithstanding any other provisions of this Agreement to the contrary, the Company shall have
no obligation to make any payment to the Executive hereunder to the extent, but only to the extent,
that such payment is prohibited by the terms of any final order of a federal or state court or
regulatory agency of competent jurisdiction; provided, however, that such an order shall not
affect, impair, or invalidate any provision of this Agreement not expressly subject to such order.

     10.7 Modification. No provision of this Agreement may be modified, waived, or discharged
unless such modification, waiver, or discharge is agreed to in writing and signed by the Executive
and by a member of the Board, as applicable, or by the respective parties’ legal representatives or
successors.

     10.8 Applicable Law. To the extent not preempted by the laws of the United States, the laws of
Delaware shall be the controlling law in all matters relating to this Agreement without giving
effect to principles of conflicts of laws.

          IN WITNESS WHEREOF, the parties have executed this Agreement on this                                          day of
                                        ,                                                             .

          ATTEST

          Federal Signal Corporation

	 	 	 	 	 	 	 
	 
	 	 	 	 

	 

	 	By:
	 	 

	, 	 

	 	 	 	 	Compensation Committee of the Board of Directors	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	 	 	 

	 	 	Executive	 	 

11

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