Document:

exv10w2

Exhibit 10.2

Federal Signal Corporation

Executive Change-in-Control Severance Agreement Tier 2

     THIS EXECUTIVE CHANGE-IN-CONTROL SEVERANCE AGREEMENT is made, entered into, and is effective
this                      day of March (hereinafter referred to as the “Effective Date”), by and between
Federal Signal Corporation (the “Company”), a Delaware corporation, and                      (the
“Executive”). This Agreement supersedes any applicable previously existing change-in-control
severance agreement between the Company and the Executive.

     WHEREAS, the Executive is employed by the Company and has 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 one and
one-half (1.5) 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-half
(0.5) 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

5

 

	 	 	 	to the Executive at the same coverage level and cost to the Executive as in
effect immediately 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

6

 

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.

     (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

7

 

	 	 	 	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 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

8

 

	 	 	 	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 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

9

 

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.

     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

 

     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 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

11exv10w3

Exhibit 10.3

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”), dated as of                     , 2010 (the “Effective Date”),
is entered into by and between Federal Signal Corporation, a Delaware corporation and any of its
parents, subsidiaries and affiliates as may employ Employee from time to time (“Employer”) and
Manfred Rietsch.(“Employee”).

W I T N E S S E T H:

     WHEREAS, Employer desires to employ Employee, and Employee desires to enter the employment of
Employer on the terms and subject to the conditions set forth in this Agreement;

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations
contained herein, Employer and Employee agree as follows:

ARTICLE 1: EMPLOYMENT AND DUTIES:

     1.1 Employer agrees to employ Employee, and Employee agrees to be employed by Employer,
beginning as of the Effective Date and continuing through the second anniversary of the Effective
Date (the “Term”) subject to the terms and conditions of this Agreement.

     1.2 Beginning as of the Effective Date, Employee shall be employed by Employer performing
substantially the same duties and responsibilities that he performed as Chief Executive Officer of
VESystems under such title as may be determined by Employer in its sole discretion (hereinafter the
“Position”). Employee shall report to a corporate officer or manager designated by the Chief
Executive Officer of Employer (the “CEO”) and shall have such duties and authority commensurate
with his skills and experience as shall be determined from time to time by Employer that are: (i)
agreed to in writing by Employee; or (ii) reasonably compatible with the duties and authority of
persons serving in a similar employment position with similar employers. Employee agrees to serve
in the assigned position or in such other capacities commensurate with his skills and experience as
may be reasonably requested from time to time by Employer, as long as such other capacities are:
(i) agreed to in writing by Employee; or (ii) not substantially different from the originally
assigned position. Employee agrees to perform diligently and to the reasonable best of Employee’s
abilities, and in a trustworthy, businesslike and efficient manner, the duties and services
pertaining to the Position as reasonably determined by Employer, as well as such additional or
different duties and services appropriate to such positions.

     1.3 Employee shall at all times comply with and be subject to such policies and procedures not
inconsistent with this Agreement as Employer may establish from time to time, including, without
limitation, Employer’s Company Policy for Business Conduct (the “Code of Business Conduct”).

     1.4 Employee shall, during the period of Employee’s employment by Employer, devote Employee’s
full business time and energy to the performance of Employee’s duties hereunder and to the business
and affairs of Employer. During the period of Employee’s employment, Employee

 

may not engage, directly or indirectly, in any other business, profession, investment, or activity
for compensation or otherwise that in the good faith business determination of the CEO would
materially interfere with Employee’s performance of Employee’s duties hereunder, is materially
contrary to the interest of Employer or any of its parents, subsidiaries, divisions or other
affiliates (including but not limited to VESystems Corporation and VESystems, LLC) (each an
“Employer Entity”, or collectively, the “Employer Entities”), or requires any significant portion
of Employee’s business time. The foregoing notwithstanding, the parties recognize and agree that
Employee may engage in passive personal investments and other business activities that do not
materially conflict with the business and affairs of the Employer Entities or materially interfere
with Employee’s performance of his duties hereunder. Employee may not serve on the board of
directors of any entity other than an Employer Entity and charitable nonprofit organizations during
the Term without prior approval therefor from the CEO or the CEO’s designee, which approval shall
not be unreasonably withheld. Employee shall be permitted to retain any compensation received for
approved service, including approved service on any unaffiliated corporation’s board of directors.

     1.5 Employee acknowledges and agrees that Employee owes a fiduciary duty of loyalty, fidelity,
and allegiance to act at all times in the best interests of Employer and the other Employer
Entities and to do no act which would, directly or indirectly, injure Employer Entities’ business,
interests, or reputation. It is agreed that any direct interest in, connection with, or benefit
from activities, particularly commercial activities, which interest might materially adversely
affect Employer, or any other known Employer Entity, involves a possible conflict of interest. In
keeping with Employee’s fiduciary duties to Employer, Employee agrees that Employee shall not
become involved in a conflict of interest with Employer or any other Employer Entity, or upon
discovery thereof, allow such a conflict to continue without obtaining a waiver of such conflicts
from Employer. Moreover, Employee shall not engage in any activity that might reasonably involve a
possible conflict of interest without first obtaining approval in accordance with the Code of
Conduct. . Nothing contained in this Agreement shall be construed to preclude the transfer of
Employee’s employment to another Employer Entity (“Subsequent Employer”) as of, or at any time
after, the Effective Date and no such transfer shall be deemed to be a termination of employment
for purposes of Article 3 hereof unless it involves a substantial elimination of responsibilities
or benefits; provided, however, that, effective with such transfer, all of Employer’s obligations
hereunder shall be assumed by and be binding upon, and all of Employer’s rights hereunder shall be
assigned to, such Subsequent Employer and the defined term “Employer” as used herein shall
thereafter be deemed amended to mean such Subsequent Employer. Except as otherwise provided above,
all of the terms and conditions of this Agreement, including without limitation, Employee’s rights
and obligations, shall remain in full force and effect following such transfer of employment,
subject to the terms and conditions of Article 3.

     1.6 Employee hereby represents, warrants and agrees that (i) Employee has the full power to
enter into this Agreement and perform the services required of Employee as an employee of Employer;
(ii) in the course of performing services as an employee of Employer, Employee will not knowingly
violate the terms or conditions of any known agreement between Employee and any third party or
knowingly, infringe or wrongfully appropriate, any patents, copyrights, trade secrets or other
intellectual property rights of any person or entity anywhere in the world; (iii) Employee has not
and will not disclose or use during his employment by Employer any confidential

2

 

information that Employee acquired as a result of any previous employment or consulting
arrangement that is subject to an obligation of confidentiality; and (iv) Employee has disclosed to
Employer in writing (see Exhibit A) any and all continuing business obligations to others
that require Employee not to disclose any information to Employer.

ARTICLE 2: COMPENSATION AND BENEFITS:

     2.1 Employee’s base salary beginning upon the Effective Date of employment shall be
$218,000.00 per annum, based on a calendar year (the “Base Salary”), which shall be paid in
accordance with Employer’s standard payroll practice.

     2.2 Employee shall be eligible to participate in Employer’s Short Term Incentive Bonus
program, pursuant to the terms and conditions of that program as implemented in the Employer’s sole
discretion.

     2.3 Employer shall pay or reimburse Employee for all actual, reasonable and customary expenses
incurred by Employee in the course of his employment; provided that such expenses are incurred and
accounted for in accordance with Employer’s applicable policies and procedures.

     2.4 While employed by Employer, Employee shall be allowed to participate, on the same basis
generally as other employees of Employer, in all general employee benefit plans and programs,
including improvements or modifications of the same, which on the Effective Date or thereafter are
made available by Employer to all or substantially all of Employer’s similarly situated employees.
Such benefits, plans, and programs shall include, without limitation, medical, health, and dental
care, life insurance, disability protection, qualified and non-qualified retirement plans and stock
option plans. Except as specifically provided in this Agreement, nothing in this Agreement is to
be construed or interpreted to increase or alter in any way the rights, participation, coverage, or
benefits under such benefit plans or programs that are provided to similarly situated employees
pursuant to the terms and conditions of such benefit plans and programs.

     2.5 Notwithstanding anything to the contrary in this Agreement, it is specifically understood
and agreed that Employer shall not be obligated to institute, maintain, or refrain from changing,
amending, or discontinuing any incentive, deferred compensation, employee benefit or stock or stock
option program or plan, so long as such actions are prospective and not retroactive and are
similarly applicable to covered employees generally.

     2.6 Employer shall withhold from any compensation, benefits or amounts payable under this
Agreement all federal, state, city, or other taxes as may be required pursuant to any law or
governmental regulation or ruling.

     2.7 Employee is entitled to four (4) weeks paid vacation per year (prorated for partial
years), to be taken at times mutually acceptable to Employee and Employer, and to such paid
holidays as are observed by Employer from time to time. Vacation benefits will be administered
according to Employer’s applicable practices and procedures, and subject to applicable law.

3

 

ARTICLE 3: TERMINATION OF EMPLOYMENT AND EFFECTS OF SUCH TERMINATION:

     3.1 After the conclusion of the Term, Employee’s employment with Employer shall continue on an
at-will basis; terminable by either party, for any reason, with two weeks’ notice, or payment in
lieu thereof, unless a different period of time is agreed upon in writing by the parties.

     3.2 Employer may terminate this Agreement before the end of the Term for Cause, or due to
Employee’s death or Disability. Employee may terminate this Agreement before the end of the Term
for Good Reason.

     3.3 “Cause” shall mean the occurrence of any one or more of the following:

	 	(a)	 	The Employee’s failure to substantially perform his duties with the
Employer after written notice of such failure and a reasonable opportunity to cure
following written notice; or

	 
	 	(b)	 	The Employee’s conviction of a felony; or

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

	 
	 	(d)	 	The Employee’s material breach of Employer policies, including but not
limited to the Code of Business Conduct.

     3.4 “Disability” shall have the meaning ascribed to such term in the Employer’s governing
long-term disability plan, or if no such plan exists, shall mean entitled to receive Social
Security disability benefits.

     3.5 “Good Reason” means, without the Employee’s express written consent, the occurrence of any
one (1) or more of the following , which results in a material negative change in the Employee’s
employment relationship with the Employer:

	 	(a)	 	The assignment of the Employee to duties materially inconsistent with
the Employee’s authorities, duties, responsibilities, and status (including
offices, titles, and reporting requirements) as [insert title of Employee] of the
Employer, or a material reduction or alteration in the nature or status of the
Employee’s authorities, duties, or responsibilities from those in effect as of the
date of this Agreement, other than an insubstantial and inadvertent act that is
remedied by the Employer promptly after receipt of notice thereof given by the
Employee;

4

 

	 	(b)	 	The Employer’s requiring the Employee to be based at a location in
excess of fifty (50) miles from the location of the Employee’s principal job
location or office as of the date of this Agreement without Employee’s consent;
except for required travel on the Employer’s business to an extent substantially
consistent with the Employee’s then present business travel obligations;

	 
	 	(c)	 	A reduction by the Employer of the Employee’s compensation under this
Agreement or as the same shall be increased from time to time;

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

	 
	 	(e)	 	The failure of the Employer to obtain a satisfactory agreement from
any successor to the Employer to assume and agree to perform the Employer’s
obligations under this Agreement; and

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

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

     3.6 If Employer terminates this Agreement or the employment hereunder prior to the end of the
Term without Cause or for reason other than death or Disability, or Employee terminates this
Agreement or the employment hereunder for Good Reason, Employee shall be eligible to receive those
benefits set forth in Employer’s Executive General Severance Plan in effect at the time of such
termination, subject to the terms and conditions of that plan, as administered by the Employer in
its sole discretion.

     3.7 Employee agrees that all disputes relating to Employee’s employment or termination of
employment shall be resolved as provided in Section 6.6 hereof. Nothing contained in this Article
3 shall be construed to be a waiver by Employee of any benefits accrued for or due Employee under
any employee benefit plan (as such term is defined in Employee Retirement Income Security Act of
1974, as amended) maintained by Employer.

5

 

     3.8 Termination of the employment relationship does not terminate those obligations imposed by
this Agreement, including, without limitation, Employee’s obligations under Article 4 and Article
5, which are continuing obligations for the duration of the Term, or as agreed to in Article 4 and
Article 5.

     3.9 The payment of any monies to Employee under this Agreement after the date of termination
of employment does not constitute an offer or a continuation of employment of Employee. In no
event, shall Employee represent or hold himself out to be an employee of Employer after the date of
termination of employment with Employer. Except where Employer is lawfully required to withhold
any federal, state, or local taxes, Employee shall be responsible for any and all federal, state,
or local taxes that arise out of any payments to Employee hereunder.

     3.10 During any period during which the Base Salary is being paid to Employee under this
Agreement after the date of termination, Employee shall provide to Employer reasonable levels of
assistance to Employer in answering questions concerning the business of Employer, transition of
responsibility, or litigation, provided that all out of pocket expenses of Employee reasonably
incurred, or to be incurred, in connection with such assistance is fully and promptly advanced or
reimbursed (at the option of Employee) by Employer.

ARTICLE 4: OWNERSHIP AND PROTECTION OF INTELLECTUAL PROPERTY AND CONFIDENTIAL INFORMATION:

     4.1 All information, ideas, concepts, improvements, innovations, developments, methods,
processes, designs, analyses, drawings, reports, discoveries, and inventions, whether patentable or
not or reduced to practice, which are conceived, made, developed or acquired by Employee,
individually or in conjunction with others, which reasonably relate to the business, products or
services of Employer or the other Employer Entities (including, without limitation, all such
information relating to corporate opportunities, research, financial and sales data, pricing and
trading terms, evaluations, opinions, interpretations, acquisition prospects, the identity of
customers or their requirements, the identity of key contacts within the customer’s organizations
or within the organization of acquisition prospects, or marketing and merchandising techniques,
prospective names, marks, and any copyrightable work, trade mark, trade secret or other
intellectual property rights (whether or not composing confidential information)), and all writings
or materials of any type embodying any of such items shall constitute “Work Product.” All Work
Product conceived, made, developed or acquired during Employee’s employment by Employer or any of
the other Employer Entities, both before and after the date hereof (whether during business hours
or otherwise and whether on Employer’s premises or utilizing Employer’s equipment, supplies,
facilities or trade secrets, or otherwise) (“Employer Work Product”) shall be the sole and
exclusive property of Employer or other Employer Entity, as the case may be, and shall be treated
as “work for hire.” Employee has attached hereto as Exhibit A, a list describing all Work
Product conceived, made, developed or acquired prior to Employee’s employment by Employer or any of
the other Employer Entities that may reasonably relate to the business, products or services of
Employer or the other Employer Entities. If no such list is attached, Employee represents and
warrants that there is no such Work Product.

6

 

     4.2 Employee shall promptly and fully disclose all Employer Work Product to Employer and shall
cooperate and perform all actions reasonably requested by Employer (whether during or after the
Term of employment) to establish, confirm and protect Employer’s right, title and interest in such
Employer Work Product. Without limiting the generality of the foregoing, Employee agrees to
reasonably assist Employer, at Employer’s expense, to secure Employer’s rights in the Employer Work
Product in any and all countries, including the execution by Employee of all applications and all
other instruments and documents which Employer shall deem necessary in order to apply for and
obtain rights in such Employer Work Product and in order to assign and convey to Employer the sole
and exclusive right, title and interest in and to such Employer Work Product. If Employer is
unable because of Employee’s mental or physical incapacity or for any other reason (including
Employee’s refusal to do so after request therefor is made by Employer) to secure Employee’s
signature to apply for or to pursue any application for any United States or foreign patents or
copyright registrations covering Employer Work Product belonging to or assigned to Employer
pursuant to Section 4.1 above, then Employee by this Agreement irrevocably designates and appoints
Employer and its duly authorized officers and agents as Employee’s agent and attorney-in-fact to
act for and in Employee’s behalf and stead to execute and file any such applications and to do all
other lawfully permitted acts to further the prosecution and issuance of patents or copyright
registrations thereon with the same legal force and effect as if executed by Employee, but for no
other purpose, however Employee will not be required to incur any costs associated with such
efforts. Employee agrees not to apply for or pursue any application for any United States or
foreign patents or copyright registrations covering any Employer Work Product other than pursuant
to this Section in circumstances where such patents or copyright registrations are or have been or
are required to be assigned to Employer.

     Employer and Employee acknowledge that the provisions of this Agreement requiring assignment
of Employer Work Product to Employer do not apply to any Work Product which qualifies fully under
the provisions of Section 2870 of the California Labor Code and that such provisions of this
Agreement do apply to any Employer Work Product that does not qualify under the provisions of
Section 2870 of the California Labor Code. This obligation to assign Work Product does not apply
to an invention that Employee developed entirely on his or her own time without using Employer’s
equipment, supplies, facilities, or trade secret information except for those inventions that
either: (1) relate at the time of conception or reduction to practice of the invention to
Employer’s business, or actual or demonstrably anticipated research or development of Employer; or
(2) result from any work performed by Employee for Employer.

     4.3 Employee acknowledges that the businesses of Employer and the other Employer Entities are
highly competitive and that their strategies, business plans methods, books, records, and
documents, their technical and proprietary information concerning their products, equipment,
services, and processes, procurement procedures and pricing techniques, their know-how, designs,
formulas, developmental or experimental work, computer programs, data bases, other original works
of authorship, the names of and other information (such as credit and financial data) concerning
their customers, vendors, licensors, employees and business affiliates, and all Employer Work
Product, all comprise confidential business information and trade secrets which are valuable,
special, and unique assets which Employer or the other Employer Entities use in their business to

7

 

obtain a competitive advantage over their competitors. Employee further acknowledges that
protection of such confidential business information and trade secrets against unauthorized
disclosure and use is of critical importance to Employer and the other Employer Entities in
maintaining their competitive position. Employee acknowledges that by reason of Employee’s duties
to and association with Employer and the other Employer Entities, Employee has had and will have
access to and has and will become informed of such confidential business information which is a
competitive asset of Employer and the other Employer Entities. Employee hereby agrees that
Employee will not, at any time during or for a period of two years after his or her employment by
Employer, make any unauthorized disclosure of any such confidential business information or make
any unauthorized disclosure of any trade secrets of Employer or the other Employer Entities, or
make any use thereof, except in the carrying out of his or her employment responsibilities
hereunder. Employee shall take all reasonably necessary steps to safeguard such confidential
business information and protect it against disclosure, misappropriation, misuse, loss and theft.
Confidential business information shall not include information in the public domain (but only if
the same becomes part of the public domain through a means other than a disclosure prohibited
hereunder). The above notwithstanding, a disclosure shall not be unauthorized if (i) it is
required by law or by a court of competent jurisdiction or (ii) it is in connection with any
judicial, arbitration, dispute resolution or other legal proceeding in which Employee’s legal
rights and obligations as an employee or under this Agreement are at issue; provided, however, that
Employee shall, to the extent practicable and lawful in any such events, give prior notice to
Employer of his or her intent to disclose any such confidential business information in such
context so as to allow Employer or other Employer Entity an opportunity (which Employee will not
oppose) to obtain such protective orders or similar relief with respect thereto as may be deemed
appropriate by Employer.

     4.4 All written materials, records, and other documents made by, or coming into the possession
of, Employee during the period of Employee’s employment by Employer which contain or disclose
confidential business information or trade secrets of Employer or the other Employer Entities, or
which relate to Employer Work Product described in Section 4.1 above (collectively, “Confidential
Documents”), shall be and remain the property of Employer, or the other Employer Entities, as the
case may be. Upon termination of Employee’s employment by Employer, for any reason, Employee
promptly shall deliver the Confidential Documents, and all copies thereof, to Employer, as well as
any and all other computer programs (including without limitation source and object code versions),
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings,
flow charts, blue prints, sketches, materials, equipment, other documents or property, or
reproductions of any of the aforementioned items belonging to any of Employer, the other Employer
Entities, and their respective successors and assigns.

ARTICLE 5: CERTAIN COVENANTS:

     5.1 In consideration of the compensation to be paid to Employee under this Agreement, Employee
acknowledges that in the course of Employee’s employment with Employer and the other Employer
Entities, Employee has prior to the Effective Date, and will during the Term of employment, become
familiar with Employer’s and the other Employer Entities’ trade secrets, business plans and
business strategies and with other confidential business information concerning

8

 

Employer and the other Employer Entities, including without limitation all Employer Work
Product, and that Employee’s services have been and shall be of special, unique and extraordinary
value to Employer and the other Employer Entities. Employee also acknowledges that in the course
of his employment he will have access to Employer’s relationships and goodwill with its customers,
distributors, suppliers and employees. Employee agrees that, during the twelve (12) month period
immediately following the earlier of termination of employment or the Term, Employee will promptly
advise Employer, in writing, before entering into any employment or advisory relationship with any
person or entity other than Employer or any other Employer Entities.

     5.2 During the period of Employee’s employment by any of the Employer Entities and the two
year period after Employee’s employment by any of the Employer Entities terminates, Employee will
not knowingly solicit or induce any person who is or was employed by any of the Employer Entities
for the two-year period preceding Employee’s termination (a) to interfere with the activities or
businesses of any Employer Entity or (b) to discontinue his or her employment with any of the
Employer Entities.

     5.3 During the period of Employee’s employment by any of the Employer Entities and the two
year period after Employee’s employment by any of the Employer Entities terminates, Employee will
not knowingly, directly or indirectly, influence or attempt to influence any customers,
distributors, vendors, licensors or suppliers of any of the Employer Entities with whom Employee
had contact during his employment to divert their business to any competitor of any Employer Entity
or in any way interfere with the relationship between any such customer, distributor, vendor,
licensor or supplier and any Employer Entity.

     5.4 Employee understands that the provisions of Sections 5.1, 5.2 and 5.3 hereof may limit his
ability to earn a livelihood in a business similar to the business in which he is currently
involved, but as a member of the management group of Employer he nevertheless agrees and hereby
acknowledges that (i) such provisions do not impose a greater restraint than is necessary to
protect the goodwill or other business interests of the Employer Entities; (ii) such provisions
contain reasonable limitations as to time, scope of activity, and geographical area to be
restrained; and (iii) the consideration provided hereunder, including without limitation, any
amounts or benefits provided under Article 3 hereof, is sufficient to compensate Employee for the
restrictions contained in Section 5.1, 5.2 and 5.3 hereof. In consideration of the foregoing and
in light of Employee’s education, skills and abilities, Employee agrees that he will not assert
that, and it should not be considered that, any provisions of Section 5.1, 5.2 or 5.3 otherwise are
void, voidable or unenforceable or should be voided or held unenforceable.

     5.5 If, at the time of enforcement of Articles 4 or 5 of this Agreement, a court shall hold
that the duration, scope, or area restrictions stated herein are unreasonable under circumstances
then existing, the parties hereto agree that the maximum period, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period, scope or area and
that the court shall be allowed and directed to revise the restrictions contained herein to cover
the maximum period, scope and area permitted by law. Employee acknowledges that Employee has
access to Employer’s confidential business information and his services are unique to the Employer

9

 

Entities. Employee therefore agrees that the remedy at law for any breach by him of any of
the covenants and agreements set forth in Articles 4 and 5 will be inadequate and that in the event
of any such breach, Employer may, in addition to the other remedies which may be available to it at
law, apply to any court of competent jurisdiction to obtain specific performance and/or injunctive
relief prohibiting the breach of such covenants and agreements and to enforce, or prevent any
violations of, the provisions of this Agreement. In addition, in the event of an alleged breach or
violation by Employee of this Article 5, the applicable duration of restraint set forth in this
Article shall be tolled until such breach or violation has been cured.

     5.6 Each of the covenants of this Article 5 are given by Employee as part of the consideration
for this Agreement and as an inducement to Employer to enter into this Agreement and accept the
obligations hereunder.

ARTICLE 6: MISCELLANEOUS:

     6.1 For purposes of this Agreement, the terms “affiliate” or “affiliated” means an entity or
entities in which Employer has a greater than 50% or more direct or indirect equity interest or
entity or entities that have a greater than 50% or more direct or indirect equity interest in
Employer.

     6.2 For purposes of this Agreement, notices and all other communications provided for herein
shall be in writing and shall be deemed to have been duly given when received by or tendered to
Employee, Employer, as applicable, by pre-paid courier or by United States registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

	 	 	 	 	 
	 

	 	If to Employer :

	 	Federal Signal Corporation

	 

	 	 
	 	1415 W. 22nd Street

	 

	 	 
	 	Suite 1100

	 

	 	 
	 	Oak Brook IL 60523

	 

	 	 
	 	Attn: Jennifer L. Sherman, General Counsel

	 

	 	 
	 	Facsimile: (866) 229-4459

	 

	 	 
	 	 

	 

	 	with a copy to :

	 	Bartlit Beck Herman Palenchar & Scott LLP

	 

	 	 
	 	1899 Wynkoop Street, Suite 800

	 

	 	 
	 	Denver, Colorado 80202

	 

	 	 
	 	Attn: James L. Palenchar

	 

	 	 
	 	Facsimile: (303) 592-3140

	 

	 	 
	 	 

	 

	 	If to Employee:

	 	To his last known personal residence

     6.3 Except to the extent governed by the laws of other States, this Agreement shall be
governed by and construed and enforced, in all respects in accordance with; the law of the State of
Illinois, without regard to principles of conflicts of law, unless preempted by federal law, in
which

10

 

case federal law shall govern; provided, however, that the rules of the American Arbitration
Association shall govern in all respects with regard to the resolution of disputes hereunder.

     6.4 No failure by either party hereto at any time to give notice of any breach by the other
party of, or to require compliance with, any condition or provision of this Agreement shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

     6.5 It is a desire and intent of the Employer and Employee that the terms, provisions,
covenants, and remedies contained in this Agreement shall be enforceable to the fullest extent
permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the
application thereof to any person, association, or entity or circumstances shall, to any extent, be
construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant,
or remedy shall be construed in a manner consistent with the intent of this Agreement so as to
permit its enforceability under the applicable law to the fullest extent permitted by law. In any
case, the remaining provisions of this Agreement or the application thereof to any person,
association, or entity or circumstances other than those to which they have been held invalid or
unenforceable, shall remain in full force and effect.

     6.6 It is the mutual intention of the parties to have any dispute concerning this Agreement
resolved out of court. Accordingly, the parties agree that any such dispute shall, as the sole and
exclusive remedy, be submitted for resolution pursuant to binding arbitration to be held in
Chicago, Illinois, in accordance with the employment arbitration rules (except as modified below)
of the American Arbitration Association and with the Expedited Procedures thereof (collectively,
the “Rules”); provided, however, that Employee or Employer, on its own behalf and on behalf of any
of the other Employer Entities, shall be entitled to seek a restraining order or injunction in any
court of competent jurisdiction to prevent any breach or the continuation of any breach of the
provisions of this Agreement and Employee or Employer, as the case may be, hereby consents that
such restraining order or injunction may be granted without the necessity of the other party
posting any bond. Each of the parties hereto agrees that such arbitration shall be conducted by a
single arbitrator selected in accordance with the Rules; provided that such arbitrator shall be
experienced in deciding cases concerning the matter which is the subject of the dispute. Each of
the parties agrees that the award shall be made in writing no more than 30 days following the end
of the proceeding. Any award rendered by the arbitrator, as well as the arbitrator’s determination
of which party or parties and in what amount(s) the costs and fees of the arbitrator shall be
borne, shall be final and binding and judgment may be entered on it in any court of competent
jurisdiction. Each of the parties hereto agrees to treat as confidential the results of any
arbitration (including, without limitation, any findings of fact and/or law made by the arbitrator)
and not to disclose such results to any unauthorized person.

     6.7 This Agreement shall be binding upon and inure to the benefit of Employer, its successors
in interest, or any other person, association, or entity which may hereafter acquire or succeed to
all or substantially all of the business assets of Employer by any means, whether indirectly or
directly, and whether by purchase, merger, consolidation, or otherwise. No such assignment shall
relieve Employer or Employee of any of its obligations under this Agreement.

11

 

Employee’s rights and obligations under this Agreement are personal and such rights, benefits,
and obligations of Employee shall not be voluntarily or involuntarily assigned, alienated, or
transferred by Employee, whether by operation of law or otherwise, without the prior written
consent of Employer, other than in the case of death or permanent disability of Employee.

     6.8 This Agreement replaces and merges any previous agreements and discussions pertaining to
the subject matter covered herein. This Agreement constitutes the entire agreement of the parties
with regard to the terms of Employee’s employment, termination of employment and severance
benefits, and contains all of the covenants, promises, representations, warranties, and agreements
between the parties with respect to such matters. Each party to this Agreement acknowledges that
no representation, inducement, promise, or agreement, oral or written, has been made by either
party with respect to the foregoing matters which is not embodied herein, and no agreement,
statement, or promise relating to the employment of Employee by Employer that is not contained in
this Agreement shall be valid or binding. Any modification of this Agreement will be effective
only if it is in writing and signed by each party whose rights hereunder are affected thereby.

     6.9 The provisions of this Agreement will be administered, interpreted and construed in a
manner intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), the regulations issued thereunder or any exception thereto (or disregarded to the extent
such provision cannot be so administered, interpreted, or construed). If the Employer determines
in good faith that any amounts to be paid to Employee under this Agreement are subject to Section
409A of the Code, then the Employer may, to the extent necessary, adjust the form and/or the timing
of such payments as determined to be necessary or advisable to be in compliance with Section 409A.
If any payment must be delayed to comply with Section 409A, then the deferred payment will be paid
at the earliest practicable date permitted by Section 409A. Notwithstanding any provision of this
agreement to the contrary, Employee acknowledges and agrees that the Employer shall not be liable
for, and nothing provided or contained in this agreement will be construed to obligate or cause the
Employer to be liable for, any tax, interest or penalties imposed on Employee related to or arising
with respect to any violation of Section 409A.

[Signature page follows.]

12

 

     IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple
originals to be effective on the Effective Date.

	 	 	 	 	 
	 	FEDERAL SIGNAL CORPORATION.

 	 
	 	By:  	 	 
	 	 	Name:  	Jennifer L. Sherman 	 
	 	 	Title:  	General Counsel 	 
	 

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	
 	 
	 	Manfred Rietsch 	 
	 	 	 

13

 

EXHIBIT A

LIST OF PRIOR WORK PRODUCT

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	IDENTIFYING NO.	 
	TITLE	 	DATE OF CREATION	 	 	OR BRIEF DESCRIPTION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00172-of-00352.parquet"}]]