Document:

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                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT (the "Agreement"), entered into this 7th day of
June, 2000 but dated and effective as of the 1st day of June, 1999, by and
between DualStar Technologies Corporation, a Delaware corporation (the
"Company"), and Robert J. Birnbach (the "Executive").

         WHEREAS, the Executive is currently serving as Executive Vice
President, Chief Financial Officer and Secretary of the Company;

         WHEREAS, the Company believes and recognizes the Executive's
contributions to the Company's founding, growth, improvement and success from
1994-2000 have been substantial;

         WHEREAS, the parties desire to enter into this Agreement setting forth
the terms and conditions for the employment relationship of the Executive with
the Company;

         WHEREAS, the Board of Directors of the Company ("Board") and the
Governance and Compensation Committee of the Board have approved and authorized
the entry into this Agreement with the Executive;

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and Executive agrees as
follows:

         1. EMPLOYMENT. The Company agrees to employ Executive during the
Employment Period, as hereinafter defined, in an executive capacity in
accordance with the provisions of section 2 hereof, and Executive agrees to be
so employed by the Company, all subject to the terms and provisions of this
Employment Agreement. The Employment Period shall commence on the date hereof
and shall continue until the earliest to occur of the following:

         (a)  Termination of Executive's employment by the Company or Executive,
              the Date of Termination as defined in Section 4(d); or

         (b)  Executive's death.

         2. POSITION AND DUTIES. During the Employment Period, Executive shall
serve in the capacity of Executive Vice President, Chief Financial Officer and
Secretary of the Company or in such other mutually acceptable capacity as the
Company and Executive may decide.

         3. COMPENSATION.

         (a) SALARY: As of the date hereof, the Company shall pay Executive a
base salary at the rate of not less than Two Hundred-Twenty Thousand Dollars
($220,000) per annum ("Annual Salary"), payable in equal regular installments on
the 15th and last day of each month during the Employment Period. Executive's
Annual Salary may be increased but not decreased by the Board in its sole and
absolute discretion, after taking into consideration a variety of factors,
including, without limitation, the performance of the Executive and the Company
and the

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base salary (and raises) paid by comparable companies to senior officers having
comparable responsibilities. Any such increased salary shall become the Annual
Salary on and after the effective date of such increase. Participation in
deferred compensation, discretionary bonus, retirement and other employee
benefit plans and in fringe and other salary benefits shall not reduce the
salary payable to the Executive under this Section 3(a).

         (b) BONUS: During each year of the term of this Agreement, the Company
agrees to submit for approval to the Board, in its sole and absolute discretion,
an incentive payment plan ("IPP"), which shall establish performance targets for
the Company and/or its business units, and bonus payments based upon the
achievement of such performance targets. The Company agrees that the Executive
shall participate in such IPP at a target bonus of 50% of Base Salary, based
upon 100% achievement of the performance targets established in the IPP. The
target bonus percentage shall be reviewed no less frequently than annually
during the term of this Agreement and may be increased but not decreased by the
Company's Board, in its sole and absolute discretion. In establishing
performance targets and target bonus percentages for the Employee, the Company
will consider a variety of factors, including, without limitation, performance
targets set for, and bonus payments paid to, senior officers having comparable
responsibilities at comparable companies.

         (c) STOCK OPTIONS: The parties acknowledge, affirm and ratify that: (a)
on October 17, 1994, the Company granted 90,000 ten-year incentive stock options
to Executive with an exercise price of $3.00 per share. Such incentive stock
options vested in equal installments of 30,000 on December 31, 1994, December
31, 1995 and December 31, 1996; (b) on October 17, 1994, the Company sold 87,000
ten-year stock options at fair market value to Executive's Individual Retirement
Account for $4,000. Such stock options have been exercisable since the date of
sale, with an exercise price of $3.00 per share; (c) on June 30, 1997, the
Company granted 464,000 ten-year incentive stock options to Executive with an
exercise price of $0.75 per share. 348,000 stock options vested on June 30, 1997
and 116,000 stock options vested on June 30, 1998; and (d) on March 8, 2000, the
Company granted 25,000 ten-year incentive stock options to Executive with an
exercise price of $10.25 per share; and (e) all grants and sales listed above
were done pursuant to the Company's 1994 Stock Option Plan, were approved by the
Company's Board and its Stock Award Committee (or comparable committee), and
used an exercise price above fair market value on the date of such event.

         (d) BENEFITS: The Executive shall be entitled to participate in any and
all plans of the Company relating to stock, stock options, restricted stock,
employee stock purchase or ownership, pensions, bonuses, thrift, profit sharing,
Section 401(k), group life insurance, group disability insurance, severance,
medical coverage, dental coverage, Section 125, loans, education and/or any
other retirement or employee benefit plans or arrangements that the Company has
adopted or may adopt for the benefit of its employees and/or executive officers.
Executive shall be entitled to four weeks as vacation and such personal and sick
benefit days during each year of the term in accordance with standard Company
policies. The Executive shall also be entitled to participate in, or enjoy the
benefit of, any other fringe benefits or perquisites that are now or may be
offered to any of the Company's executive employees at an amount and rate no
less than that of other senior executive officers. The Company shall reimburse
Executive for all reasonable expenses incurred by him in the performance of his
duties in the same manner as other senior

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executive officers, in accordance with the policies and procedures established
by the Company. The Company shall pay the education expenses of Executive at the
sole discretion of the Company. During the Employment Period, the Company shall
provide Executive with the exclusive use of a Company owned or leased automobile
of a type and model appropriate to Executive's position and shall pay or
reimburse all reasonable expenses associated with the operation of such
automobile.

         4. TERMINATION. Subject to and in accordance with the provisions of
Section 5 hereof:

         (a) The Company may terminate the Employment Period at any time for
Cause or otherwise by giving written notice of such termination in accordance
with Section 4(c) below. If the Employment Period is terminated for Cause which
shall mean: (i) the engaging by Executive in willful misconduct or gross
negligence in connection with the performance of his duties hereunder, which
conduct has materially injured the Company; or (ii) Executive has been convicted
of, or entered a plea of nolo contendere to, a felony. Prior to terminating the
Executive for Cause under this Section 4(a), the Board must provide Executive
with a written opinion from the Company's outside counsel that the Executive
committed the violation alleged, specifying the particulars thereof, and a
written opinion by the Board agreeing with such determination.

         (b) The Executive may terminate his employment at any time for Good
Reason (defined below) or otherwise by giving written notice of such termination
in accordance with Section 4(c) below.

         (c) Any termination by the Company or Executive shall be communicated
by written Notice of Termination to Executive, or to the representatives of the
Executive's estate in the case of the Executive's termination due to death. For
purposes of this Agreement, a "Notice of Termination" shall mean a 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.

         (d) "Date of Termination" shall mean (i) if the Executive's employment
is terminated by his death, the date of his death; (ii) if the Executive's
employment is terminated pursuant to subsection (a) above, the date specified in
the Notice of Termination; (iii) in the case of a termination by the Company,
other than pursuant to subsection (a) above, the date specified in the Notice of
Termination which date shall be at least 30 days after the date of such Notice;
(iv) in the case of a termination by Executive, the date specified in the Notice
of Termination which date shall be at least 30 days after the date of such
Notice.

         For purposes of this Agreement, "Good Reason" shall mean: (A) a Change
of Control as defined on Schedule A attached hereto and incorporated herein by
this reference; (B) any assignment to the Executive of any duties which are
materially different or diminished compared to those outlined in Section 2 and
which are not mutually acceptable to the parties hereto; (C) any removal of the
Executive from or any failure to re-elect the Executive to any of the positions
indicated in Section 2 hereof, except in connection with termination of the
Executive's employment for death, Disability (defined below) or Cause; (D) a
reduction in the Executive's

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Annual Salary, or a reduction in the Executive's fringe benefits (except in
connection with any change in Company policy which results in a similar
reduction of fringe benefits for all similarly situated executives), or any
other material failure by the Company to comply with its obligations hereunder;
or (E) without the express written consent of the Executive, the Company
requires the Executive to be based more than 30 miles away from the Company's
New York City offices.

         Except as set forth in Section 5 in this Agreement, it is the intention
and agreement of the Company and the Executive that the Executive not be
deprived, by the termination of this Agreement for any reason, of any rights,
payments, options or benefits which have vested or been earned or to which the
Executive is otherwise entitled as of the Date of Termination, and it is also
the intention and agreement of the Company and the Executive that no such right,
payment, option or benefit will be reduced or otherwise affected by such
termination.

         5. Compensation Upon Executive's Death, Disability or Other
Termination.

         (a) If the Executive's employment shall be terminated by reason of his
death, the Company shall pay the Annual Salary and a pro rated portion of his
Annual Bonus through the Date of Termination at the rate in effect on the Date
of Termination to such person as Executive shall have designated in a notice
filed with the Company, or if no such person shall have been designated in a
notice filed with the Company, to Executive's estate; and all unvested options
granted to Executive shall immediately vest. Receipt of the foregoing benefits
shall not reduce any rights of the Executive's widow, beneficiaries or estate to
receive any payments to which Executive may be entitled to receive, including
those rights under any pension or employee benefit plan or life insurance policy
maintained by the Company.

         (b) If Executive shall become unable efficiently to perform the
essential functions of his position with the Company, even with reasonable
accommodation, as a result of a disability or illness, as such terms are defined
by the Americans with Disabilities Act, Executive shall be entitled to his
regular compensation until the total period of disability or illness (whether or
not continuous and whether or not the same disability or illness) shall exceed
60 days during any calendar year in the term hereunder. This Agreement may
thereafter be terminated by the Company and, subject to the payment by the
Company of the Executive's Annual Salary and a pro rated portion of his Annual
Bonus through the Date of Termination at the rate in effect on the Date of
Termination and the immediate vesting of all unvested options granted to
Executive, the Company's obligations hereunder shall cease, including the
obligation to pay compensation for any period after the Date of Termination. Any
amounts payable as compensation during the period of disability or illness,
shall be reduced by any amounts paid during such period under any disability
plan or similar insurance maintained by the Company for Executive's benefit.

         (c) If the Executive's employment shall be terminated for Cause, the
Company shall pay the Executive his Annual Salary through the Date of
Termination at the rate in effect at the time Notice of Termination is given,
and all stock options granted to Executive not yet fully vested shall be
forfeited. The Company shall have no further obligations to the Executive under
this Agreement other than for those benefits provided to Executive under the
Company's retirement and stock purchase plans or any other employee benefit
plans.

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         (d) If (1) the Company shall terminate the Executive's employment other
than (A) for Cause or (B) as a result of Executive's death or Disability, or (2)
the Executive terminates his employment for Good Reason:

         (i)   The Company shall pay Executive his full Annual Salary through
               the Date of Termination at the rate in effect at the time the
               Notice of Termination is given, together with a lump sum
               severance payment payable on the Date of Termination in an amount
               (less all applicable tax and other withholdings) equal to the sum
               of twenty-four (24) months of Annual Salary (the "Severance
               Amount");

         (ii)  All unvested options granted to Executive shall immediately vest;

         (iii) For a period of 12 months following the Date of Termination,
               Executive shall be entitled, at no cost to Executive, to: (w)
               continued participation (including dependent coverage) in the
               benefits described in Section 3(d), including those covering
               life, accident, disability, health and dental insurance,
               education and loans; (x) continued use of the Company automobile
               described in Section 3(d); and (y) continued use of an office,
               secretary and support services at the Company's New York
               Tri-State area office (to the extent Company maintains such
               office); and

         (iv)  Executive shall be entitled to payment of any amount contemplated
               by that certain letter dated the date hereof from the Company to
               Executive regarding retention bonuses.

         (e) If the Executive terminates this Agreement other than for Good
Reason, the Company shall pay the Executive his full Annual Salary through the
Date of Termination at the rate in effect at the time Notice of Termination is
given and Executive shall be able to retain that portion of the options granted
to him that have vested prior to the Date of Termination and the Company shall
have no further obligations to the Executive under this Agreement other than for
those benefits provided under the Company's retirement and stock purchase plans
or any other employee benefit plans.

         (f) The Executive shall not be required to mitigate the amount of any
payment provided for in this Section 5 by seeking employment or otherwise.
Executive acknowledges that payment of the Severance Amount and the provision of
the other benefits contemplated by this Section 5 shall constitute complete
satisfaction of all monetary obligations owed by the Company to the Executive
under this Section 5 and shall further constitute Executive's sole monetary
remedy against the Company.

         6. Competitive Activity. During the Employment Period and for a further
period of one year thereafter, Executive shall not:

         (a) Participate, without the written consent of the Board of Directors
or a person authorized thereby, in the management or control of, or act
regularly as a consultant of, or

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employee of, any business operation or any enterprise if such operation or
enterprise engages in substantial and direct competition with any material line
of business at the time actively and primarily engaged in by the Company or any
of its subsidiaries, divisions, affiliates or new businesses or business units
(collectively, the "Companies"); provided, however, that the foregoing shall not
include the mere ownership of not more than five percent of the equity
securities of any enterprise or the participation in an investment banking firm
or otherwise engaging in investment advisory activities and in that capacity
serving or advising enterprises in competition with the Company's. Not
inconsistent with his responsibilities to the Company hereunder, the Executive
may devote a portion of his working time, attention and energies to the
businesses of Starrett Corporation, Blackacre Capital Management LLC, Cerberus
Capital Management, L.P. and their affiliates and other entities. Nothing herein
shall be interpreted to preclude Executive from participating as an officer or
director of, or advisor to, any charitable or other tax exempt or civic
organization;

         (b) Solicit, in competition with the Companies, any person who is a
customer of the business conducted by the Companies or of any business in which
the Companies are substantially engaged at any time during the Employment
Period; and

         (c) Induce or attempt to persuade any employee of the Company's to
terminate his or her employment relationship in order to enter into competitive
employment.

         7. Unauthorized Disclosure. During the Employment Period and for a
further period of three (3) years thereafter, Executive shall not, except as
required by any court or administrative agency, without the written consent of
the Board of Directors or a person authorized thereby, disclose to any person,
other than an employee of the Company or a person to whom disclosure is
reasonably necessary or appropriate in connection with the performance by
Executive of the duties to the Company, any material confidential information
obtained by him while in the employ of the Company with respect to any of the
Company's inventions, processes, customers, methods of distribution, methods of
manufacturing, attorney-client communications, pending or contemplated
acquisitions, other trade secrets, or any other material information which the
Company is obliged to keep confidential pursuant to any confidentiality
agreement or protective order; provided, however, that confidential information
shall not include any information now known or which becomes known generally to
the public (other than as a result of an unauthorized disclosure by Executive)
or any information of a type not otherwise considered confidential by a person
engaged in the same businesses or a business similar to that conducted by the
Companies. During and after the Employment Period, each party to this Agreement
(including their affiliates, agents, employees, officers and directors) agrees
not to criticize, denigrate or disparage the other party, their services,
products, work or performance. Upon termination other than for Cause and at
Executive's election, Company shall disseminate a press release acknowledging
Executive's departure from, and contributions to, the Company.

         8. Scope of Covenants; Remedies. The following provisions shall apply
to the covenants contained in Sections 6 and 7 hereof:

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         (a) The covenants contained in Sections 6(a) and 6(b) shall apply
within the New York City area;

         (b) Without limiting the right of the Company to pursue all other legal
and equitable remedies available for violation by Executive of the covenants
contained in Sections 6 and 7 hereof, it is expressly agreed by Executive and
the Company that such other remedies cannot fully compensate the Company for
any-such violation and that the Company shall be entitled to injunctive relief
to prevent any such violation or any continuing violation thereof;

         (c) Each party intends and agrees that if, in any action before any
court or agency legally empowered to enforce the covenants contained in sections
6 and 7 hereof, any term, restriction, covenant or promise contained therein is
found to be unreasonable and accordingly unenforceable, then such term,
restriction, covenant or promise shall be deemed modified to the extent
necessary to make it enforceable by such court or agency;

         (d) The covenants contained in Sections 6 and 7 hereof shall survive
the conclusion of the Employment Period.

         9. Assignment and succession. The rights and obligation of the Company
under this Employment Agreement shall inure to the benefit of and be binding
upon its successors and assigns and Executive's rights and obligations hereunder
shall inure to the benefit of and be binding upon his heirs, designated
successor, his legal representative and guardians.

         10. Notices. All notices, requests, demands and other communications
made pursuant to this Employment Agreement shall be in writing and shall be
deemed duly given (a) if delivered, at the time delivered or (b) if mailed, at
the time mailed at any general or branch United States Post Office enclosed in a
registered or certified postpaid envelope addresses to the respective parties as
follows:

         If to the Company:  DualStar Technologies Corporation.
                             One Park Avenue
                             New York, New York 10016

         If to Executive:    c/o DualStar Technologies Corporation
                             One Park Avenue
                             New York, New York  10016

         with a copy to:     Executive's home address, as on file with the
                             Company

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or to such other address as either party may have previously furnished to the
other in writing in the manner set forth above, provided that such notice of
change of address shall only be effective upon receipt.

         11. Miscellaneous.

         (a) No provision of this Agreement may be modified unless such
modification is authorized by an executive officer of the Company and is agreed
to in writing and signed by Executive and another executive officer of the
Company.

         (b) This Employment Agreement constitutes the entire agreement of the
parties hereto relating to the subject matter hereof and there are no written or
oral terms or representations made by either party except those contained
herein.

         (c) This Employment agreement shall be construed and enforced in
accordance with and governed by the laws of the State of New York.

         (d) The invalidity of any term or terms of this employment agreement
shall not invalidate or otherwise affect any other terms of this Employment
Agreement, which shall remain in full force and effect.

         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement on the day and year first above written.

                                    DUALSTAR TECHNOLOGIES CORPORATION

                                    By: /s/
                                       ----------------------------------
                                    Gregory Cuneo
                                    President and Chief Executive Officer

                                    By: /s/
                                       ----------------------------------
                                    Jared E. Abbruzzese
                                    Chairman of the Board

                                    EXECUTIVE
                                    /s/
                                    -------------------------------------
                                    Robert J. Birnbach

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                                                                      Schedule A

For purposes hereof, a "Change of Control" of the Company shall be deemed to
have occurred if, after the date hereof, (i) any person or two or more persons
acting in concert, other than the Company, any employee benefit plan sponsored
by the Company, Cerberus Capital Management, L.P., Blackacre Capital Management
LLC, Technology Investors Group, LLC or any of their Affiliates, acquires
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Securities Exchange Act of 1934, as amended (the "'34 Act") directly or
indirectly of fifty percent (50%) or more of the total voting power represented
by the Company's then outstanding voting securities (calculated as provided in
paragraph (d) of Rule 13d-3 under the '34 Act in the case of rights to acquire
voting securities); or (ii) any person or two or more persons acting in concert,
other than the Company, any employee benefit plan sponsored by the Company,
Cerberus Capital Management, L.P, Blackacre Capital Management LLC, Technology
Investors Group, LLC or any of their Affiliates, shall purchase shares of the
Company pursuant to a tender offer or exchange offer to acquire any voting
securities of the Company (or securities convertible into such voting
securities) for cash, securities or any other consideration, provided that after
the consummation of the offer, the person or persons in question has beneficial
ownership directly or indirectly of fifty percent (50%) or more of the total
voting power represented by the Company's then outstanding voting securities
(all as calculated under clause (i) above)); or (iii) the stockholders of the
Company shall approve (A) any consolidation or merger of the Company in which
the Company is not the continuing or surviving corporation (other than a merger
of the Company in which holder of the Common Shares of the Company immediately
prior to the merger have the same proportionate ownership of common stock of the
surviving corporation immediately after the merger as immediately before), or
pursuant to which Common Shares of the Company would be converted into cash,
securities or other property, or (B) any sale, lease, exchange or other transfer
(in one transaction or a series of related transactions) of all or substantially
all of the assets of the Company, other than a sale, lease, exchange or other
transfer of all or substantially all assets of the Company to Cerberus Capital
Management, L.P., Blackacre Capital Management, LLC, Technology Investors Group,
LLC or any of their affiliates; or (iv) a change in control of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A promulgated under the '34 Act, whether or not the Company is then
subject to such reporting requirement; or (v) there shall have been a change in
the composition of the Board of Directors of the Company at any time during any
consecutive twenty-four (24) month period such that "continuing directors" cease
for any reason to constitute at least a 70% majority of the Board. For purposes
of this clause, "continuing directors" means those members of the Board who
either were directors at the beginning of such twenty-four month period or were
elected by or on the nomination or recommendation of at least a 70% majority of
the then-existing "continuing directors." So long as there has not been a
"change of control" within the meaning of clause (v), the Board of Directors may
adopt by a 70% majority of the "continuing directors" a resolution to the effect
that an event described in clauses (i) or (ii) shall not constitute a "change of
control."

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                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT (this "Agreement") made as of the 1st day of June,
2000 by and between Nicholas Ahel (hereinafter referred to as "Employee") and
DUALSTAR TECHNOLOGIES CORPORATION, a Delaware corporation having its principal
place of business at 11-30 47th Avenue, Long Island City, New York 11101
(hereinafter referred to as the "Company").

         1. Employment. The Company hereby employs Employee and Employee agrees
to work for the Company with the title specified on Schedule A below during the
Term (as defined below) of and upon the terms and conditions set forth in this
Agreement.

         2. Compensation/Benefits. (a) Base Salary. During the Term of this
Agreement, the Company agrees to pay Employee the base annual salary specified
on Schedule A below ("Base Salary"). Such Base Salary shall be reviewed no less
frequently than annually during the term of this Agreement and may be increased
but not decreased by the Company's board of directors in its sole and absolute
discretion, after taking into consideration a variety of factors, including,
without limitation, the performance of the Employee and the Company and the base
salary (and raises) paid by comparable companies to employees having comparable
responsibilities. In the event of any increase, the increased amount shall
become the Base Salary. Such Base Salary shall be payable in accordance with the
Company's normal business practices or in such other amounts and at such other
times as the parties may mutually agree.

         (b) Bonuses. On account of each year of the Term of this Agreement, the
Company agrees to pay to Employee a bonus equal to 10% (ten percent) of the net
income before taxes of the Company's High-Rise Electric subsidiary, calculated
in a manner consistent with past practices and GAAP.

         (c) Benefits/Vacation. During the Term of this Agreement, the Company
also shall provide Employee with such other benefits, including medical,
disability, pension and severance plans, as are made generally available to
executive employees of the Company from time to time. Employee shall be entitled
to three weeks as vacation and such personal and sick benefit days during each
year of the Term in accordance with standard Company policies.

         (d) Life Insurance. Subject to Employee's submitting to any required
physical examinations, the Company shall purchase and maintain in effect a term
insurance policy with a face amount of one times Employee's Base Salary or other
greater amount as may be specified in the Company's executive benefit policies
or plans on the life of Employee and shall permit Employee to designate the
beneficiary thereof.

         3. Services. Employee agrees to devote substantially all of his working
time, attention and energies to the business of the Company and its Affiliates
under the general direction of the President and Chief Executive Officer and the
Company's board of directors acting through its Chairman. Nothing herein shall
be interpreted to preclude Employee from participating as an officer or director
of, or advisor to, any charitable or other tax exempt or civic organization.

<PAGE>
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         4. Term. The term of this Agreement (the "Term" or the "Term of this
Agreement") shall commence on April 1, 2000 and shall continue through the Date
of Termination, as hereinafter defined. Agreement to expire on July 1, 2002.

         5. Early Termination. (a) In General. The Employee's employment
hereunder shall terminate and, other than the obligations listed in Paragraph
5(b), the Company's obligations hereunder shall cease, including the obligation
to pay compensation for any period after the date of termination on the Date of
Termination. The Date of Termination shall be (i) in the case of the death of
the Employee, the date of death; (ii) in the case of a termination by Employee,
the last date to be worked as specified in a written notice delivered by
Employee to the Company, which shall be not less than two weeks following the
date that such notice is given; (iii) in the case of a termination by the
Company other than for Cause (as defined below), the date set forth in a written
notice delivered by the Company to Employee, which date shall be not less than
two weeks following upon written notice following the date that such notice is
given; or (iv) in the case of a termination by the Company for Cause (as defined
below), the date upon which written notice of such termination is delivered to
Employee.

         "Cause" shall mean that the Employee has acted with willful misconduct
or gross negligence in connection with the performance of his duties hereunder,
which conduct has materially injured the Company, or has been convicted of, or
entered a plea of nolo contendere to, a felony. Upon the Date of Termination,
the Term of this Agreement shall expire. Notwithstanding the foregoing, the
Employee shall not be deemed to have been terminated for Cause arising out of an
act of willful misconduct or gross negligence without (a) no less than ten (10)
days prior written notice to the Employee setting for the reasons for the
Company's intention to terminate for Cause, (b) an opportunity for the Employee
to be heard (together with comments of counsel) before the Board of Directors of
the Company, and (c) delivery to the Employee of a notice of termination from
the Board of Directors of the Company stating its opinion that the Employee has
acted with willful misconduct or gross negligence and specifying the particulars
thereof.

         (b) Payments Upon Termination. (i) Upon termination of this Agreement
for any reason, Employee shall be entitled to all compensation and benefits
earned but not yet paid up to and including the termination date, including Base
Salary, pro rata bonus, if any, in the year of termination (payable in
accordance with Company policy), and any other incentive compensation. Unless
otherwise specified in this Agreement, unused vacation shall be treated in
accordance with Company policy.

         (ii) In the event of Employee's (A) termination of employment or this
Agreement by the Company other than for Cause, or (B) termination of employment
by Employee for "Good Reason" (as defined below), in addition to the Company's
obligations set forth in subparagraph (i) above, Employee shall be entitled to
severance in an amount equal to one full year of Base Salary (the "Severance
Amount"), all unvested Options then held by Employee shall immediately vest and
Employee shall retain all rights to the Options, but shall have a period of nine
(9) months following the Date of Termination in which to exercise such Options,
in accordance with the option agreement governing such options (the "Option
Agreement"), and Employee shall continue to receive employee benefits for a
period of six months following the

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                                       3

Date of Termination and the Employee's eligible dependents will continue to
participate in all of Company's health and welfare plans (or Company-provided
equivalent benefits) in which such dependents participated prior to the Date of
Termination, subject to the Employee continuing to make any required
contributions for such participation. Following such 6-month period, Employee
shall be entitled to all benefits ordinarily accorded terminated employees of
the Company. The Company's obligation to make the foregoing employee benefits
available to Employee and his eligible dependents shall cease upon Employee
becoming eligible for comparable benefits from a subsequent employer. Effective
upon the Date of Termination pursuant to clause (A) or (B) above, in
consideration of the payment of the Severance Amount and as a condition to the
payment thereof, Employee acknowledges that payment of the Severance Amount and
the provision of the other benefits contemplated hereby shall constitute
complete satisfaction of all obligations owed by the Company to the Employee and
shall further constitute Employee's sole remedy against the Company.

         (iii) In the event of a termination by Employee other than for Good
Reason, in addition to the Company's obligations set forth in subparagraph (i)
above, Employee shall retain that portion of the Options which have vested prior
to the Date of Termination, but shall have a period of ninety (90) days from the
Date of Termination in which to exercise such Options. In the event of a
termination by the Company for Cause, the provisions of Section 5(f) below shall
govern.

         (iv) In the event of a termination of employment by reason of
Employee's death or disability, in addition to the Company's obligations set
forth in subparagraph (i) above, all unvested Options then held by Employee (or
his estate, if applicable) shall immediately vest and Employee (or his estate)
shall retain all rights to the Options, but shall have a period of eighteen (18)
months from the Date of Termination in which to exercise such Options.

         (c) Method of Payment. The Company shall pay the Severance Amount in a
lump sum not later than ten (10) days after the Employee's last day of active
employment (the "Effective Date"), provided, however, that at Employee's option,
the Severance Amount shall be payable to Employee in the form of equal periodic
payments ("Deferred Payment") according to the Company's regular payroll
schedule or at any other intervals elected by Employee for a period commencing
on the first regular payroll pay date beginning after the Effective Date (the
"Deferred Payment Period"). In order to receive Deferred Payment during a
Deferred Payment Period, Employee must elect such Deferred Payment in writing
and specify the Deferred Payment Period, which may not exceed the number of
months of Base Monthly Salary payable to Employee as the Severance Amount. In
the event of Employee's death during the Deferred Payment Period, any unpaid
Deferred Payment shall be paid in a lump sum to such beneficiary or
beneficiaries designated by Employee in writing or, failing such designation, to
Employee's spouse if Employee is married or to Employee's estate if Employee is
unmarried. In no event shall Employee be required to mitigate his damages
arising out of any termination of this Agreement by the Company or by Employee .

         (d) Good Reason. For purposes of this Agreement, Good Reason shall
mean, with respect to Employee, (i) the assignment to Employee of any duties
materially inconsistent with, or substantially reduced as compared to, those set
forth in Section 1 or Schedule A, excluding for

<PAGE>
                                       4

this purpose an isolated, insubstantial and inadvertent action not taken in bad
faith and that is remedied by the Company promptly after receipt of notice
thereof given by Employee; (ii) any material reduction in Employee's Base
Salary, opportunity to earn annual bonuses or other compensation or employee
benefits, other than as a result of an isolated and inadvertent action not taken
in bad faith and that is remedied by the Company promptly after receipt of
notice thereof given by Employee; (iii) the Company's requiring Employee to
relocate his principal place of business to a place that is not within a 30-mile
radius of Long Island City, NY, (iv) any purported termination of this Agreement
by the Company otherwise than as expressly permitted by this Agreement, or (v) a
"Change of Control" of High-Rise Electric. For purposes hereof, a "Change of
Control" of the Company shall be deemed to have occurred if, after the date
hereof, (i) any person or two or more persons acting in concert, other than the
Company, any employee benefit plan sponsored by the Company, Cerberus Capital
Management, L.P., Blackacre Capital Management LLC, Technology Investors Group,
LLC or any of their Affiliates, acquires beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as
amended (the "'34 Act") directly or indirectly of fifty percent (50%) or more of
the total voting power represented by the Company's then outstanding voting
securities (calculated as provided in paragraph (d) of Rule 13d-3 under the '34
Act in the case of rights to acquire voting securities); or (ii) any person or
two or more persons acting in concert, other than the Company, any employee
benefit plan sponsored by the Company, Cerberus Capital Management, L.P,
Blackacre Capital Management LLC, Technology Investors Group, LLC or any of
their Affiliates, shall purchase shares of the Company pursuant to a tender
offer or exchange offer to acquire any voting securities of the Company (or
securities convertible into such voting securities) for cash, securities or any
other consideration, provided that after the consummation of the offer, the
person or persons in question has beneficial ownership directly or indirectly of
fifty percent (50%) or more of the total voting power represented by the
Company's then outstanding voting securities (all as calculated under clause (i)
above)); or (iii) the stockholders of the Company shall approve (A) any
consolidation or merger of the Company in which the Company is not the
continuing or surviving corporation (other than a merger of the Company in which
holder of the Common Shares of the Company immediately prior to the merger have
the same proportionate ownership of common stock of the surviving corporation
immediately after the merger as immediately before), or pursuant to which Common
Shares of the Company would be converted into cash, securities or other
property, or (B) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets
of the Company, other than a sale, lease, exchange or other transfer of all or
substantially all assets of the Company to Cerberus Capital Management, L.P.,
Blackacre Capital Management, LLC, Technology Investors Group, LLC or any of
their affiliates; or (iv) a change in control of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the '34 Act, whether or not the Company is then subject to
such reporting requirement; or (v) there shall have been a change in the
composition of the Board of Directors of the Company at any time during any
consecutive twenty-four (24) month period such that "continuing directors" cease
for any reason to constitute at least a 70% majority of the Board. For purposes
of this clause, "continuing directors" means those members of the Board who
either were directors at the beginning of such twenty-four month period or were
elected by or on the nomination or recommendation of at least a 70% majority of
the then-existing "continuing directors." So long as there has not been a
"change of control" within the meaning of clause (v), the Board of Directors may
adopt by a 70% majority

<PAGE>

                                       5

of the "continuing directors" a resolution to the effect that an event described
in clauses (i) or (ii) shall not constitute a "change of control."

         (e) Disability. If Employee shall become unable efficiently to perform
the essential functions of his job, even with reasonable accommodation, as a
result of a disability or illness, as such terms are defined by the Americans
with Disabilities Act, he shall be entitled to his regular compensation until
the total period of disability or illness (whether or not continuous and whether
or not the same disability or illness) shall exceed 60 days during any calendar
year in the Term hereunder. This Agreement may thereafter be terminated by the
Company and, subject to the terms of paragraph (b) above, the Company's
obligations hereunder shall cease, including the obligation to pay compensation
for any period after the Date of Termination. Any amounts payable as
compensation during the period of disability or illness, shall be reduced by any
amounts paid during such period under any disability plan or similar insurance
maintained by the Company for Employee's benefit.

         (f) Cause. Upon a termination for Cause, Employee shall receive Base
Salary through the Date of Termination, and all other entitlement to benefits or
bonuses shall cease immediately, and all stock options not yet fully vested and
exercised shall be forfeited. Employee shall retain that portion of the Options
that have vested prior to the Date of Termination for Cause, but shall have a
period of 90 days from the Date of Termination in which to exercise such
Options.

         (g) Change of Control. As used herein, a "Change of Control" of the
Company shall be deemed to have occurred if, after the date hereof, (i) any
person or two or more persons acting in concert, other than the Company, any
employee benefit plan sponsored by the Company, Cerberus Capital Management,
L.P., Blackacre Capital Management LLC, Technology Investors Groups, LLC or any
of their Affiliates, acquires beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the
"'34 Act") directly or indirectly of fifty percent (50%) or more of the total
voting power represented by the Company's then outstanding voting securities
(calculated as provided in paragraph (d) of Rule 13d-3 under the '34 Act in the
case of rights to acquire voting securities); or (ii) any person or two or more
persons acting in concert, other than the Company, any employee benefit plan
sponsored by the Company, Cerberus Capital Management, L.P, Blackacre Capital
Management LLC, Technology Investors Group, LLC or any of their Affiliates,
shall purchase shares of the Company pursuant to a tender offer or exchange
offer to acquire any voting securities of the Company (or securities convertible
into such voting securities) for cash, securities or any other consideration,
provided that after the consummation of the offer, the person or persons in
question has beneficial ownership directly or indirectly of fifty percent (50%)
or more of the total voting power represented by the Company's then outstanding
voting securities (all as calculated under clause (i) above)); or (iii) the
shareholders of the Company shall approve (A) any consolidation or merger of the
Company in which the Company is not the continuing or surviving corporation
(other than a merger of the Company in which holder of the Common Shares of the
Company immediately prior to the merger have the same proportionate ownership of
common stock of the surviving corporation immediately after the merger as
immediately before), or pursuant to which Common Shares of the Company would be
converted into cash, securities or other property, or (B) any sale, lease,
exchange or other transfer (in one transaction

<PAGE>
                                       6

or a series of related transactions) of all or substantially all of the assets
of the Company, other than a sale, lease, exchange or other transfer of all or
substantially all assets of the Company to Cerberus Capital Management, L.P.,
Blackacre Capital Management, LLC, Technology Investors Group, LLC or any of
their affiliates; or (iv) a change in control of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the '34 Act, whether or not the Company is then subject to
such reporting requirement; or (v) there shall have been a change in the
composition of the Board of Directors of the Company at any time during any
consecutive twenty-four (24) month period such that "continuing directors" cease
for any reason to constitute at least a 70% majority of the Board. For purposes
of this clause, "continuing directors" means those members of the Board who
either were directors at the beginning of such twenty-four month period or were
elected by or on the nomination or recommendation of at least a 70% majority of
the then-existing "continuing directors." So long as there has not been a
"change of control" within the meaning of clause (v), the Board of Directors may
adopt by a 70% majority of the "continuing directors" a resolution to the effect
that an event described in clauses (i) or (ii) shall not constitute a "change of
control."

         6. Employer's Authority. Employee agrees to observe and comply with the
rules and regulations of the Company as adopted by the Company's board of
directors respecting the performance of his duties and to carry out and perform
orders, directions and policies communicated to him from time to time,
consistent with his position and with past practices.

         7. Expenses. During the Term of this Agreement, the Company shall
reimburse Employee for the reasonable business expenses incurred by Employee in
the course of performing his duties for the Company hereunder in accordance with
the procedures then in place for such reimbursement.

         8. Non-Disclosure and Non-Competition. Employee has executed a
Nondisclosure Agreement of the Company attached hereto as Exhibit 1. In
addition, during the Term and for a further period of one year thereafter,
Employee shall not participate, without the written consent of the Company, in
the management or control of, or act as an employee or officer of, any business
operation which engages in any activity which is primarily engaged in or
competes significantly with the material telecommunications businesses conducted
by the Company and High Rise Electric or any of its Affiliates (the
"Companies"). Such covenant shall apply within all territories in which the
Companies are actively engaged in business or are actively soliciting business.
The parties agree that if any portion of this Paragraph 8 shall be deemed by any
court or agency to be unreasonable and/or unenforceable, then it shall be
modified to the extent necessary to make it enforceable by such court or agency.

         9. Survival. The last sentence of Paragraph 5(b)(ii), Paragraph 8 and
Paragraph 14 of this Agreement shall survive termination of employment hereunder
and of this Agreement.

         10. Execution, Delivery and Performance. To the best of Employee's
knowledge, the execution, delivery and performance by Employee of this Agreement
or any other agreement, instrument or document contemplated herein or hereby
will not result in a breach of or conflict with any terms of any other
agreement, instrument or document to which Employee is a party or by which
Employee or his property is bound. No consent or approval of any person or
entity,

<PAGE>
                                       7

other than those that have been obtained by Employee, is required for Employee
to execute, deliver and perform its obligations under this Agreement or any
agreement, instrument or document contemplated herein or hereby.

         11. Notices. Any notice permitted or required hereunder shall be deemed
sufficient when hand-delivered or mailed by certified mail, postage prepaid, and
addressed if to the Company at the address indicated above and if to the
Employee at the address indicated below (or to such other address as may be
provided by written notice received at least five (5) business days prior to the
hand delivery or mailing of any such notice).

         12. Miscellaneous. (a) This Agreement (i) constitutes the entire
agreement between the parties concerning the subjects hereof and supersedes any
and all prior agreements or understandings, (ii) may not be assigned by Employee
without the prior written consent of the Company, and (iii) may be assigned by
the Company to any Affiliate of the Company or to the successors or assigns of
the Company, provided such successors or assigns carry on substantially the
Company's telecommunications business as conducted at the time of assignment and
shall be binding upon, and inure to the benefit of, any such Affiliate,
successor or assign.

         (b) Headings herein are for convenience of reference only and shall not
define, limit or interpret the contents hereof.

         (c) As used herein, the term "Affiliate" shall mean any entity
controlled by or under common control with another person.

         13. Amendment. This Agreement may be amended, modified or supplemented
by the mutual consent of the parties in writing, but no oral amendment,
modification or supplement shall be effective.

         14. Specific Enforcement. The parties acknowledge that the Company
would be irreparably damaged and there would be no adequate remedy at law for
the Employee's breach of Paragraph 8 of this Agreement, and accordingly, the
terms thereof shall be specifically enforced. Employee hereby consents to the
entry of any temporary restraining order or preliminary injunction, in addition
to any other remedies available at law or in equity, to enforce the provisions
hereof, provided sufficient facts are shown to warrant such relief. In the event
that any action is brought to enforce Paragraph 8 hereof, the prevailing party
shall be entitled to recover its costs and attorneys fees in addition to any
other relief granted.

         15. Severability. The provisions of this Agreement are severable. The
invalidity of any provision shall not affect the validity of any other
provision.

         16. Governing Law; Arbitration. This Agreement shall be construed and
regulated in all respects under the laws of the State of New York without regard
to its conflict of laws principles. Any dispute, controversy or questions
arising under, out of, or relating to this Agreement of Employee's employment
with the Company or termination thereof, shall be referred for arbitration in
the State of New York to a single neutral arbitrator selected by the Employee
and Company and this shall be the exclusive and sole means of resolving any such

<PAGE>
                                       8

dispute. The arbitration proceeding shall be governed by the Employment Rules of
the American Arbitration Association then in effect or such rules last in effect
(in the event such Association is no longer in existence) but shall not be
conducted under the auspices of the Association, and the decision of the
arbitrator shall be governed by the rule of law. If the parties are unable to
agree upon a neutral arbitrator within thirty (30) days after each party has
given the other written notice of the desire to submit a dispute, controversy or
question for decision as aforesaid, then either party may apply to the CPR of
New York City for the appointment of a neutral arbitrator or, if the CPR is not
then in existence or does not desire to act in the matter, either party may
apply to the Presiding Judge of the appropriate court for the appointment of a
neutral arbitrator to hear the parties and settle the dispute, controversy or
question. Such right to submit a dispute, controversy or question arising
hereunder to arbitration and the decision of the neutral arbitrator shall be
final, conclusive and binding on all parties and interested persons and no
action at law or in equity shall be instituted or, if instituted, further
prosecuted by either party other than to enforce the award of the neutral
arbitrator. The arbitrator shall take submissions and hear testimony, if
necessary, and shall render a written decision as promptly as possible, The
arbitrator may require any form of discovery (e.g., depositions) in making his
decision. In connection with any arbitration, the prevailing party shall be
entitled to recover its costs and reasonable attorneys' fees in addition to
other relief granted.

         IN WITNESS WHEREOF, this Agreement is entered into as of the date and
year first above written.

DUALSTAR TECHNOLOGIES                                EMPLOYEE:
  CORPORATION

By:     /s/                                          /s/
Name:   Gregory Cuneo                                Name: Nicholas Ahel
Title:  President & CEO

<PAGE>
                                       9

                                   SCHEDULE A

                  Name:                     Nicholas Ahel

                  Title:                    Vice President, High-Rise Electric

                  Base Salary:              $260,000

                  Home Address:
                                            -----------------------------

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