Document:

exv10w42

 

EXHIBIT 10.42

EMPLOYMENT AGREEMENT

DATED AS OF DECEMBER 6, 2004

BETWEEN

SMITH & WESSON HOLDING CORPORATION

AND

MICHAEL GOLDEN

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page No.

	1.
	 	Employment	 	 	1	 
	2.
	 	Full Time Occupation	 	 	1	 
	3.
	 	Compensation and other Benefits	 	 	1	 
	 
	 	(a) Base Salary	 	 	1	 
	 
	 	(b) Bonus	 	 	1	 
	 
	 	(c) Stock Options and Awards	 	 	1	 
	 
	 	(d) Fringe Benefits	 	 	2	 
	 
	 	(e) Vacation	 	 	2	 
	 
	 	(f) Reimbursement	 	 	2	 
	4.
	 	Term of Employment	 	 	2	 
	 
	 	(a) Employment Term	 	 	2	 
	 
	 	(b) Termination Under Certain Circumstances	 	 	2	 
	 
	 	(c) Result of Termination	 	 	3	 
	 
	 	(d) Change in Control	 	 	3	 
	5.
	 	Competition and Confidential Information	 	 	4	 
	 
	 	(a) Interests to be Protected	 	 	4	 
	 
	 	(b) Non-Competition	 	 	4	 
	 
	 	(c) Non-Solicitation of Employees	 	 	5	 
	 
	 	(d) Confidential Information	 	 	5	 
	 
	 	(e) Return of Books and Papers	 	 	5	 
	 
	 	(f) Disclosure of Information	 	 	5	 
	 
	 	(g) Assignment	 	 	5	 
	 
	 	(h) Equitable Relief	 	 	5	 
	 
	 	(i) Restrictions Separable	 	 	6	 
	6.
	 	Miscellaneous	 	 	6	 
	 
	 	(a) Notices	 	 	6	 
	 
	 	(b) Indulgences; Waivers	 	 	7	 
	 
	 	(c) Controlling Law	 	 	7	 
	 
	 	(d) Binding Nature of Agreement	 	 	7	 
	 
	 	(e) Execution in Counterpart	 	 	7	 
	 
	 	(f) Provisions Separable	 	 	7	 
	 
	 	(g) Entire Agreement	 	 	7	 
	 
	 	(h) Paragraph Headings	 	 	8	 
	 
	 	(i) Gender	 	 	8	 
	 
	 	(j) Number of Days	 	 	8	 
	7.
	 	Successors And Assigns	 	 	8	 

 

 

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT dated as of the 6th day of December, 2004, by and
between SMITH & WESSON HOLDING CORPORATION, a Nevada corporation (“Employer”),
and MICHAEL GOLDEN (“Employee”).

     WHEREAS, Employer desires to employ Employee, and Employee desires to
accept such employment, upon the terms and conditions contained herein.

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants set forth in this Agreement, the parties hereto agree as follows:

     1. Employment.

     Employer hereby employs Employee, and Employee hereby accepts such
employment, as President and Chief Executive Officer of Employer and of such
subsidiaries of Employer as Employer shall designate and in such other
capacities and for such other duties and services as shall from time to time be
mutually agreed upon by Employer and Employee. Employee shall report to the
Board of Directors of Employer.

     2. Full Time Occupation.

     Employee shall devote Employee’s entire business time, attention, and
efforts to the performance of Employee’s duties under this Agreement, shall
serve Employer faithfully and diligently, and shall not engage in any other
employment or other business activities while employed by Employer.

     3. Compensation and other Benefits.

          (a) Base Salary. Employer shall pay to Employee a base salary at a rate
of $325,000 per annum to be paid in equal monthly installments, or in such
other periodic installments upon which Employer and Employee shall mutually
agree. On an annual basis, the Compensation Committee of the Board of
Directors shall review Employee’s base salary and may increase, or recommend
that the full board increase, Employee’s base salary in the committee’s or the
board’s discretion, but neither the committee nor the board may decrease
Employee’s base salary.

          (b) Bonus. Employee shall be eligible to participate in executive
compensation programs maintained by Employer for its executive personnel.
Employee also shall be eligible to receive an annual bonus in such an amount,
if any, determined by the Board of Directors of Employer or such committee of
the Board of Directors as may be designated by the Board of Directors based
upon such factors as may be deemed relevant by the Board of Directors or
committee thereof, including the performance of Employee.

          (c) Stock Options and Awards. Employee shall be granted stock options
under Employer’s Stock Option Plan to purchase a total of 500,000 shares of
Employer’s common stock at any time or from time to time from the date of
vesting until 10 years of the date

 

 

of grant at a price equal to the closing price of Employer’s common stock
on the American Stock Exchange on the date of the execution of this Agreement.
The stock options will vest 20% on each of the first five anniversaries of the
date of grant, provided that no such options shall vest after any termination
of employment and vested options shall be exercisable for 60 days after any
termination of employment. On an annual basis, the Compensation Committee of
the Board of Directors will consider, or recommend that the full board
consider, the grant of additional options to Employee.

          (d) Fringe Benefits. Employee shall receive a car allowance of $1,000 per
month. Employee also shall be entitled to participate in any group insurance,
pension, retirement, vacation, expense reimbursement, and other plans,
programs, or benefits approved by the Board of Directors or a duly constituted
committee of the Board of Directors and made available from time to time to
employees of Employer generally during the term of Employee’s employment
hereunder. The foregoing shall not obligate Employer to adopt or maintain any
particular plan, program, or benefit.

          (e) Vacation. Employee shall be entitled to a paid vacation in accordance
with the applicable policies of Employer in effect from time to time, but not
less than four weeks of paid vacation per annum.

          (f) Reimbursement. Employer shall reimburse Employee for all travel,
entertainment, and other ordinary and necessary business expenses incurred by
Employee in connection with the business of Employer and Employee’s duties
under this Agreement. The term “business expenses” shall not include any item
not deductible in whole or in part by Employer for federal income tax purposes.
To obtain reimbursement, Employee shall submit to Employer receipts, bills or
sales slips for the expenses incurred. Reimbursements shall be made by
Employer monthly within 10 days of presentation by Employee of evidence of the
expenses incurred.

     4. Term of Employment.

          (a) Employment Term. The term of this Agreement shall be for a period of
two years commencing as of the date hereof and from year to year thereafter,
unless and until terminated by either party giving written notice to the other
not less than 60 days prior to the end of the then-current term.

          (b) Termination Under Certain Circumstances. Notwithstanding anything to
the contrary herein contained:

               (i) Death. Employee’s employment shall be automatically terminated,
without notice, effective upon the date of Employee’s death.

               (ii) Disability. If Employee shall fail, for a period of more than 60
consecutive days, or for 90 days within any 180-day period, to perform any of
Employee’s duties under this Agreement as the result of illness or other
incapacity, Employer, at its option and upon written notice to Employee, may
terminate Employee’s employment effective on the date of that notice.

2

 

               (iii) Unilateral Decision of Employer. Employer may, at its option, upon
written notice to Employee, terminate Employee’s employment effective on the
date of that notice.

               (iv) Unilateral Decision by Employee. Employee may, at Employee’s option
and upon written notice to Employer, terminate Employee’s employment effective
on the date of that notice.

               (v) Certain Acts. If Employee engages in an act or acts involving a
crime, moral turpitude, fraud, or dishonesty, or if Employee willfully violates
in a material respect Employer’s Corporate Governance Guidelines, Code of
Conduct, or Code of Ethics for the CEO and Senior Financial Officers,
including, without limitation, the provisions thereof relating to conflicts of
interest or related party transactions, Employer may, at its option and upon
written notice to Employee, terminate Employee’s employment effective on the
date of that notice.

               (vi) Change in Control. Employee may, at Employee’s option and upon
written notice to Employer, terminate Employee’s employment effective on the
date of the notice in the event of a “Change in Control” of Employer (as
defined below) unless the Change in Control shall have been specifically
approved by the Board of Directors and the provisions of this Agreement remain
in full force and effect as to Employee and Employee suffers reduction in
Employee’s status, duties, authority, and compensation following such Change in
Control.

          (c) Result of Termination. In the event of the termination of Employee’s
employment pursuant to Sections 4(b)(i), 4(b)(ii), 4(b)(iv), or 4(b)(v) above,
Employee shall receive no further compensation under this Agreement. In the
event of the termination of Employee’s employment pursuant to Section 4(b)(iii)
or 4(b)(vi) above, Employee shall continue to receive Employee’s base salary as
provided in Section 3(a) above as well as any fringe benefits being received by
him pursuant to Section 3(d) above at the date of termination for a period of
one year after such termination. Employee shall receive no additional
compensation following any termination. In the event of any termination,
Employee shall resign all positions (including positions on the Board of
Directors) with Employer and its subsidiaries.

          (d) Change in Control. The term “Change in Control” of Employer shall
mean 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
Securities Exchange Act of 1934 as in effect on the date of this Agreement or,
if Item 6(e) is no longer in effect, any regulations issued by the Securities
and Exchange Commission pursuant to the Securities Exchange Act of 1934 that
serve similar purposes; provided that, without limitation, such a Change in
Control shall be deemed to have occurred if and when (i) any person (as such
term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934) directly or indirectly of equity securities of
Employer representing 20 percent or more of the combined voting power of
Employer’s then-outstanding equity securities, except that this provision shall
not apply to any person currently owning at least five percent or more of the
combined voting power of Employer’s currently outstanding equity securities or
to an acquisition

3

 

that has been approved by at least 75 percent of the members of the Board
of Directors who are not affiliates or associates of such person; (ii) during
the period of this Agreement, individuals who, at the beginning of such period,
constituted the Board of Directors of Employer (the “Original Directors”),
cease for any reason to constitute at least a majority thereof unless the
election or nomination for election of each new director was approved (an
“Approved Director”) by the vote of a Board of Directors constituted entirely
of Existing Directors and/or Approved Directors; (iii) a tender offer or
exchange offer is made whereby the effect of such offer is to take over and
control Employer, and such offer is consummated for the equity securities of
Employer representing 20 percent or more of the combined voting power of
Employer’s then-outstanding voting securities; (iv) Employer is merged,
consolidated, or enters into a reorganization transaction with another person
and, as the result of such merger, consolidation, or reorganization, less than
75 percent of the outstanding equity securities of the surviving or resulting
person shall then be owned in the aggregate by the former stockholders of
Employer; or (v) Employer transfers substantially all of its assets to another
person or entity that is not a wholly owned subsidiary of Employer. Sales of
Employer’s Common Stock beneficially owned or controlled by Employee shall not
be considered in determining whether a Change in Control has occurred.

     5. Competition and Confidential Information.

          (a) Interests to be Protected. The parties acknowledge that Employee will
perform essential services for Employer, its employees, and its stockholders
during the term of Employee’s employment with Employer. Employee will be
exposed to, have access to, and work with, a considerable amount of
Confidential Information (as defined below). The parties also expressly
recognize and acknowledge that the personnel of Employer have been trained by,
and are valuable to, Employer and that Employer will incur substantial
recruiting and training expenses if Employer must hire new personnel or retrain
existing personnel to fill vacancies. The parties expressly recognize that it
could seriously impair the goodwill and diminish the value of Employer’s
business should Employee compete with Employer in any manner whatsoever. The
parties acknowledge that this covenant has an extended duration; however, they
agree that this covenant is reasonable and it is necessary for the protection
of Employer, its stockholders, and employees. For these and other reasons, and
the fact that there are many other employment opportunities available to
Employee if he should terminate his employment, the parties are in full and
complete agreement that the following restrictive covenants are fair and
reasonable and are entered into freely, voluntarily, and knowingly.
Furthermore, each party was given the opportunity to consult with independent
legal counsel before entering into this Agreement.

          (b) Non-Competition. During the term of Employee’s employment with
Employer and for the period ending 12 months after the termination of
Employee’s employment with Employer, regardless of the reason therefor,
Employee shall not (whether directly or indirectly, as owner, principal, agent,
stockholder, director, officer, manager, employee, partner, participant, or in
any other capacity) engage or become financially interested in any competitive
business conducted within the Restricted Territory (as defined below). As used
herein, the term “competitive business” shall mean any business that sells or
provides or attempts to sell or provide products or services the same as or
substantially similar to the products or services sold or provided by Employer
during Employee’s employment hereunder,

4

 

and the term “Restricted Territory” shall mean any state or other
geographical in which Employer sells products or provides services during
Employee’s employment hereunder.

          (c) Non-Solicitation of Employees. During the term of Employee’s
employment and for a period of 12 months after the termination of Employee’s
employment with Employee, regardless of the reason therefor, Employee shall not
directly or indirectly, for Employee, or on behalf of, or in conjunction with,
any other person, company, partnership, corporation, or governmental entity,
seek to hire or hire any of Employer’s personnel or employees for the purpose
of having any such employee engage in services that are the same as or similar
or related to the services that such employee provided for Employer.

          (d) Confidential Information. Employee shall maintain in strict secrecy
all confidential or trade secret information relating to the business of
Employer (the “Confidential Information”) obtained by Employee in the course of
Employee’s employment, and Employee shall not, unless first authorized in
writing by Employer, disclose to, or use for Employee’s benefit or for the
benefit of, any person, firm, or entity at any time either during or subsequent
to the term of Employee’s employment, any Confidential Information, except as
required in the performance of Employee’s duties on behalf of Employer. For
purposes hereof, Confidential Information shall include without limitation any
materials, trade secrets, knowledge, or information with respect to management,
operational, or investment policies and practices of Employer; any business
methods or forms; any names or addresses of customers or data on customers or
suppliers; and any business policies or other information relating to or
dealing with the management, operational, or investment policies or practices
of Employer.

          (e) Return of Books and Papers. Upon the termination of Employee’s
employment with Employer for any reason, Employee shall deliver promptly to
Employer all files, lists, books, records, manuals, memoranda, drawings, and
specifications; all cost, pricing, and other financial data; all other written
or printed materials that are the property of Employer (and any copies of
them); and all other materials that may contain Confidential Information
relating to the business of Employer, which Employee may then have in
Employee’s possession, whether prepared by Employee or not.

          (f) Disclosure of Information. Employee shall disclose promptly to
Employer, or its nominee, any and all ideas, designs, processes, and
improvements of any kind relating to the business of Employer, whether
patentable or not, conceived or made by Employee, either alone or jointly with
others, during working hours or otherwise, during the entire period of
Employee’s employment with Employer or within six months thereafter.

          (g) Assignment. Employee hereby assigns to Employer or its nominee, the
entire right, title, and interest in and to all inventions, discoveries, and
improvements, whether patentable or not, that Employee may conceive or make
during Employee’s employment with Employer, or within six months thereafter,
and which relate to the business of Employer.

          (h) Equitable Relief. In the event a violation of any of the restrictions
contained in this Section is established, Employer shall be entitled to
preliminary and permanent injunctive relief as well as damages and an equitable
accounting of all earnings, profits, and

5

 

other benefits arising from such violation, which right shall be
cumulative and in addition to any other rights or remedies to which Employer
may be entitled. In the event of a violation of any provision of subsection
(b), (c), (f), or (g) of this Section, the period for which those provisions
would remain in effect shall be extended for a period of time equal to that
period beginning when such violation commenced and ending when the activities
constituting such violation shall have been finally terminated in good faith.

          (i) Restrictions Separable. If the scope of any provision of this
Agreement (whether in this Section 5 or otherwise) is found by a Court to be
too broad to permit enforcement to its full extent, then such provision shall
be enforced to the maximum extent permitted by law. The parties agree that the
scope of any provision of this Agreement may be modified by a judge in any
proceeding to enforce this Agreement, so that such provision can be enforced to
the maximum extent permitted by law. Each and every restriction set forth in
this Section 5 is independent and severable from the others, and no such
restriction shall be rendered unenforceable by virtue of the fact that, for any
reason, any other or others of them may be unenforceable in whole or in part.

     6. Miscellaneous.

          (a) Notices. All notices, requests, demands, and other communications
required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given, made, and received (i) if personally delivered,
on the date of delivery, (ii) if by facsimile transmission, upon receipt, (iii)
if mailed, three days after deposit in the United States mail, registered or
certified, return receipt requested, postage prepaid, and addressed as provided
below, or (iv) if by a courier delivery service providing overnight or
“next-day” delivery, on the next business day after deposit with such service
addressed as follows:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	(1	)	 	 	 	If to Employer:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	2100 Roosevelt Avenue
	 	 	 	 	 	 	 	 	Springfield, Massachusetts 01104
	 	 	 	 	 	 	 	 	Attention: Chairman of the Board
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	with a copy given in the manner
	 	 	 	 	 	 	 	 	prescribed above, to:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Greenberg Traurig, LLP
	 	 	 	 	 	 	 	 	2375 East Camelback Road
	 	 	 	 	 	 	 	 	Suite 700
	 	 	 	 	 	 	 	 	Phoenix, Arizona 85016
	 	 	 	 	 	 	 	 	Attention: Robert S. Kant, Esq.
	 	 	 	 	 	 	 	 	Phone: (602) 445-8302
	 	 	 	 	 	 	 	 	Facsimile: (602) 445-8100
	 	 	 	 	 	 	 	 	E-Mail: KantR@gtlaw.com

6

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	(2	)	 	 	 	If to Employee:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	Phone:	 	 
	

	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	Facsimile:	 	 
	

	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	E-Mail:	 	 
	

	 	 	 	 	 	 	 	 	 	

Either party may alter the address to which communications or copies are to be
sent by giving notice of such change of address in conformity with the
provisions of this Section 6 for the giving of notice.

          (b) Indulgences; Waivers. Neither any failure nor any delay on the part
of either party to exercise any right, remedy, power, or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power, or privilege preclude any other or
further exercise of the same or of any other right, remedy, power, or
privilege, nor shall any waiver of any right, remedy, power, or privilege with
respect to any occurrence be construed as a waiver of such right, remedy,
power, or privilege with respect to any other occurrence. No waiver shall be
binding unless executed in writing by the party making the waiver.

          (c) Controlling Law. This Agreement and all questions relating to its
validity, interpretation, performance and enforcement, shall be governed by and
construed in accordance with the laws of the state of Massachusetts,
notwithstanding any Massachusetts or other conflict-of-interest provisions to
the contrary.

          (d) Binding Nature of Agreement. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors, and assigns, except that no party may assign or
transfer such party’s rights or obligations under this Agreement without the
prior written consent of the other party.

          (e) Execution in Counterpart. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original as
against any party whose signature appears thereon, and all of which shall
together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together,
shall bear the signatures of the parties reflected hereon as the signatories.

          (f) Provisions Separable. The provisions of this Agreement are
independent of and separable from each other, and no provision shall be
affected or rendered invalid or unenforceable by virtue of the fact that for
any reason any other or others of them may be invalid or unenforceable in whole
or in part.

          (g) Entire Agreement. This Agreement contains the entire understanding
between the parties hereto with respect to the subject matter hereof and
supersedes all prior and contemporaneous agreements and understandings,
inducements, and conditions, express or implied, oral or written, except as
herein contained. The express terms hereof control

7

 

and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. This Agreement may not be modified
or amended other than by an agreement in writing.

          (h) Paragraph Headings. The paragraph headings in this Agreement are for
convenience only; they form no part of this Agreement and shall not affect its
interpretation.

          (i) Gender. Words used herein, regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine, or neuter, as
the context requires.

          (j) Number of Days. In computing the number of days for purposes of this
Agreement, all days shall be counted, including Saturdays, Sundays, and
holidays; provided, however, that if the final day of any time period falls on
a Saturday, Sunday, or holiday, then the final day shall be deemed to be the
next day that is not a Saturday, Sunday, or holiday.

     7. Successors And Assigns.

     This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties hereto; provided that because the
obligations of Employee hereunder involve the performance of personal services,
such obligations shall not be delegated by Employee. For purposes of this
Agreement successors and assigns shall include, but not be limited to, any
individual, corporation, trust, partnership, or other entity that acquires a
majority of the stock or assets of Employer by sale, merger, consolidation,
liquidation, or other form of transfer. Employer will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
to all or substantially all of the business and/or assets of Employer to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that Employer would be required to perform it if no such
succession had taken place. Without limiting the foregoing, unless the context
otherwise requires, the term “Employer” includes all subsidiaries of Employer.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

	 	 	 	 	 
	 	 	SMITH & WESSON HOLDING CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Barry Monheit
	

	 	 	 	

	 	 	Name: Barry Monheit
	 	 	Its: Chairman
	 
	 	 	 	 
	 	 	/s/ Michael Golden
	 	 	

	 	 	Michael Golden

8<PAGE>

EXHIBIT 10.1

                            ASSET PURCHASE AGREEMENT

      This ASSET PURCHASE AGREEMENT (this "AGREEMENT") is made and entered into
as of November 30, 2004 by and among INTEGRATED ELECTRICAL SERVICES, INC., a
Delaware corporation (the "PARENT"), GOSS ELECTRIC COMPANY, INC., a Delaware
corporation (the "COMPANY"), GOSS, INC., an Alabama corporation (the "BUYER"),
and ROBERT CARL GOSS, an individual and resident of the State of Alabama
("GUARANTOR")

                                   WITNESSETH:

      WHEREAS, the Parent owns, either directly or indirectly, all of the issued
and outstanding capital stock of the Company, which is engaged in the electrical
construction and services business (the "BUSINESS");

      WHEREAS, the Parent and the Company desire to sell to the Buyer
substantially all of the Company's assets, which are more fully described in
Section 1.1 hereof, and the Buyer desires to acquire such assets in
consideration of the payment by the Buyer of the purchase price and the
assumption by the Buyer of the liabilities provided for herein, all upon the
terms and subject to the conditions hereinafter set forth;

      WHEREAS, Guarantor is the President and owner of the Buyer and has agreed
to personally guarantee to the Parent and the Company the Buyer's performance of
all representations, warranties, covenants, agreements and conditions set forth
herein;

      NOW, THEREFORE, for and in consideration of the premises and of the
respective representations, warranties, covenants, agreements and conditions of
the parties contained herein, it is hereby agreed as follows:

1.    PURCHASE AND SALE OF ASSETS.

      1.1 Transfer of Assets. On the terms and subject to the conditions set
forth in this Agreement, on the Closing Date (as defined in Section 2.1 hereof),
the Company shall sell, convey, assign, transfer and deliver to the Buyer, and
the Buyer shall purchase and acquire from the Company (except as provided in
Section 1.2 hereof) all of the assets, rights and properties of the Parent or
the Company set forth on Schedule 1.1. The assets described in this Section 1.1
as being sold, conveyed, assigned, transferred and delivered to the Buyer
hereunder are sometimes hereinafter referred to collectively as the "ASSETS".

      1.2 Excluded Assets. It is expressly understood and agreed that the Assets
shall not include the following (such assets are hereinafter referred to
collectively as the "EXCLUDED ASSETS"):

            (a) Cash and cash equivalents or similar type investments, such as
      certificates of deposit, Treasury bills and other marketable securities;

            (b) Claims for refunds of taxes and other governmental charges to
      the extent such refunds relate to periods ending on or prior to the
      Closing Date;

<PAGE>

            (c) Any asset, tangible or intangible, which is not freely
      transferable without the consent of a third party, upon the failure to
      obtain such consent;

            (d) The original corporate minute books, stock books, financial
      records, tax returns, personnel and payroll records and corporate policies
      and procedures manuals of the Company and other records required by
      applicable laws to be retained;

            (e) Any contract or agreement, whether written or oral, between the
      Company and IES Contractors, Inc.; and

            (f) Any asset not set forth on Schedule 1.1.

      1.3 Instruments of Conveyance and Transfer.

            (a) At the Closing, the Buyer, the Company and the Parent shall
      enter into a Bill of Sale, Assignment and Assumption Agreement in the form
      attached hereto as Exhibit A, transferring to the Buyer good and
      indefeasible title to all of the tangible personal property included in
      the Assets, subject only to Permitted Encumbrances.

            (b) At the Closing, the Buyer and the Parent shall deliver such
      other instruments of transfer and assignment in respect of the Assets as
      the Buyer shall reasonably require and as shall be consistent with the
      terms and provisions of this Agreement.

            (c) At the Closing, the Buyer shall, and shall cause the Transferred
      Employees (as hereinafter defined) to, resign as officers and directors of
      the Company and any other affiliates of the Parent.

      1.4 Further Assurances. From time to time after the Closing, the Parent
and the Company will execute and deliver, or cause to be executed and delivered,
without further consideration, such other instruments of conveyance, assignment,
transfer and delivery and will take such other actions as the Buyer may
reasonably request in order to more effectively transfer, convey, assign and
deliver to the Buyer, and to place the Buyer in possession and control of any of
the Assets or to enable the Buyer to exercise and enjoy all rights and benefits
of the Company with respect thereto.

      1.5 Liabilities. On the Closing Date, the Buyer will assume and agree to
pay and discharge all liabilities of the Company, known or unknown, absolute or
contingent (the "ASSUMED LIABILITIES") other than the liabilities set forth on
Schedule 1.5 (the "RETAINED LIABILITIES"), which shall be retained by the Parent
or the Company, respectively.

      1.6 Expenses: Consents and Taxes. The Buyer shall pay, or cause to be paid
(i) all costs and expenses of obtaining all consents of third parties for the
assignment of any of the Assets, and (ii) all transfer, stamp, sales, use or
other similar taxes or duties payable in connection with the sale and transfer
of the Assets to the Buyer.

                                       2

<PAGE>

2.    CLOSING; PURCHASE PRICE.

      2.1 Closing Date. The consummation of the transactions contemplated in
this Agreement (the "CLOSING") shall take place at the offices of Gardere Wynne
Sewell LLP, 1000 Louisiana, Suite 3400, Houston, Texas at 10:00 a.m., Central
time, November 30, 2004 (the "CLOSING DATE") contemporaneously with the
execution of this Agreement or at such other place and time as the parties
hereto may mutually agree.

      2.2 Purchase Price. The aggregate purchase price for the Assets shall be
$3,995,000.00 (the "PURCHASE PRICE"), subject to adjustment pursuant to Section
2.3 below, plus the Buyer's assumption of the Assumed Liabilities pursuant to
Section 1.5 above. The Purchase Price shall be payable by the Buyer at the
Closing to the Company in immediately available funds by confirmed wire transfer
to a bank account to be designated by the Company.

      2.3 Cash Reconciliation. Within 30 days following the Closing Date, the
Company shall prepare and deliver to the Buyer a schedule setting forth, for the
period commencing on October 1, 2004, and ending as of the Closing, (a) the cash
disbursements funded by the Company, the Parent or any of their affiliates for
the benefit of the Company, to include those made in the ordinary course to
trade vendors and those made in the ordinary course for Company employee benefit
plans (the "DISBURSEMENTS"), and (b) the cash deposits made by the Company (the
"DEPOSITS"). Within three business days following the Buyer's receipt of such
schedule, (i) the Buyer shall remit to the Company in immediately available
funds, the amount by which the Disbursements exceed the Deposits, if any; or
(ii) the Company shall remit to the Buyer, in like manner and within such
period, the amount by which Deposits exceed the Disbursements, if any.
Disbursements shall include, but not be limited to, actual cash amounts paid by
the Company or the Parent on behalf of the Buyer, including (i) amounts paid
after September 30, 2004 for checks issued by the Company or Parent on behalf of
the Company on or before September 30, 2004 that had not cleared the banks on
September 30, 2004, which amounts were reflected on the September 30, 2004
balance sheet as negative cash amounts, and (ii) checks issued by the Buyer or
Parent on behalf of the Company subsequent to September 30, 2004, but before the
Closing that have not cleared the banks as of the Closing, and Deposits shall
include, but not be limited to, actual cash amounts received by the Company or
the Parent on behalf of the Company subsequent to September 30, 2004, but before
the Closing that have not been reflected in the Company's accounts as of the
Closing. Disbursements and Deposits will be accounted for in accordance with
Parent's accounting practices consistent with past periods.

      2.4 Purchase Price Allocation. As soon as practicable after the Closing
Date, the Company shall prepare IRS Form 8594 to report the allocation of the
Purchase Price among the Assets. Each party hereto agrees not to assert, in
connection with any tax return, tax audit or similar proceeding, any allocation
that differs from that set forth in such Form 8594.

3.    REPRESENTATIONS AND WARRANTIES.

      3.1 Representations and Warranties of the Company and the Parent. The
Company and the Parent represent and warrant to the Buyer as follows:

                                       3

<PAGE>

            (a) Organization, Authority and Qualification of the Company. The
      Company is a corporation duly organized and validly existing under the
      laws of the State of Delaware and the Company has full corporate power and
      authority to own or lease its properties and to carry on its business in
      such state. The Company has the full corporate power and authority to
      execute, deliver and perform this Agreement, and this Agreement has been
      duly and validly executed and delivered by the Company and constitutes the
      valid and legally binding obligation of the Company, subject to general
      equity principles, enforceable in accordance with its terms, except as the
      same may be limited by bankruptcy, insolvency, reorganization or similar
      laws affecting the rights of creditors generally.

            (b) No Violation. The Company is not in default under or in
      violation of its Articles of Incorporation or Bylaws.

            (c) Title to Properties; Absence of Liens and Encumbrances. The
      Company owns good and indefeasible title to the Assets, free and clear of
      all claims, liens, security interests, charges, leases, encumbrances,
      licenses or sublicenses and other restrictions of any kind and nature,
      other than the claims, liens, security interests, charges, leases,
      encumbrances, licenses or sublicenses either included among the Assumed
      Liabilities or specifically set forth on Schedule 3.1(c) hereto
      ("PERMITTED ENCUMBRANCES").

      3.2 Representations and Warranties of the Buyer. The Buyer and Guarantor,
jointly and severally, represent and warrant to the Parent and the Company as
follows:

            (a) Organization, Authority and Qualification of the Buyer. The
      Buyer is a corporation duly organized and validly existing under the laws
      of the State of Alabama and the Buyer has full corporate power and
      authority to own or lease its properties and to carry on its business in
      such state. The Buyer has the full corporate power and authority to
      execute, deliver and perform this Agreement, and this Agreement has been
      duly and validly executed and delivered by the Buyer and constitutes the
      valid and legally binding obligation of the Buyer, subject to general
      equity principles, enforceable in accordance with its terms, except as the
      same may be limited by bankruptcy, insolvency, reorganization or similar
      laws affecting the rights of creditors generally.

            (b) No Violation. The Buyer is not in default under or in violation
      of its Articles of Incorporation or Bylaws.

            (c) Certain Fees. The Buyer has not employed any broker or finder or
      incurred any other liability for any brokerage fees, commissions or
      finders' fees in connection with the transactions contemplated hereby.

            (d) Financial Information. The financial and management reports
      (including, without limitation, WIP schedules) heretofore delivered or
      made by Buyer or the Company to the Parent are true and correct in all
      material respects and do not omit to state any fact necessary to make any
      of them, in light of the circumstances in which made, not misleading. All
      executed change orders have been recorded, all agreed change orders have
      been

                                       4

<PAGE>

      executed or are listed on Schedule 3.2(d), and all checks and cash
      received by the Company and its affiliates have been deposited.

      3.3 No Warranty. The Buyer and the Guarantor acknowledge that the
Guarantor, through previous ownership and/or management of the Company, is
familiar with the Assets and the operations of the Company, and has access to
any information pertaining thereto and has made such information available to
Buyer. Neither the Company nor the Parent, nor any of their respective
directors, officers, employees, agents or representatives has made, or shall be
deemed to have made, and no such person shall be liable for, or bound in any
manner by, and Buyer and the Guarantor have not relied upon and will not rely
upon, any express or implied representations, warranties, guaranties, promises
or statements pertaining to the Business or Assets except as specifically
provided in this Section 3. The Buyer and the Guarantor acknowledge that in
making the decision to enter into this Agreement and to consummate the
transactions contemplated hereby, they have relied solely on the basis of their
own independent investigation of the Business and the Assets and upon the
express written representations, warranties and covenants in this Agreement.
Without diminishing the scope of the express written representations, warranties
and covenants of the Company and the Parent in this Agreement and without
affecting or impairing their right to rely thereon, the Buyer and the Guarantor
acknowledge that (a) they have not relied, in whole or in part, on any
information contained in documents, materials or other information provided to
them by, or on behalf of, Company or the Parent, and (b) neither Company nor the
Parent is making any representations or warranties with respect to (i) any such
documents, materials or other information, other than, in each case, as set
forth in this Agreement or (ii) the value, condition, merchantability,
marketability, profitability, suitability or fitness for a particular use or
purpose of the Assets. ACCORDINGLY, THE ASSETS ARE BEING TRANSFERRED "AS IS,
WHERE IS." EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION
3.1 OF THIS AGREEMENT, THE COMPANY AND PARENT MAKE ABSOLUTELY NO REPRESENTATIONS
OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, REGARDING THE ASSETS, INCLUDING
WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, OR THE ABILITY OF THE COMPANY TO ASSIGN THE ASSETS, OR
OBTAIN CONSENTS TO ANY ASSIGNMENT.

4.    COVENANTS; ACTION SUBSEQUENT TO CLOSING.

      4.1 Access to Books and Records. Until the third anniversary of the
Closing Date, the Parent and the Company shall afford, and will cause its
affiliates to afford, to the Buyer, its counsel, accountants and other
authorized representatives, during normal business hours, reasonable access to
the books, records and other data of the Company and the Business with respect
to periods ending on or prior to the Closing Date to the extent that such access
may be reasonably required by the Buyer to facilitate (i) the investigation,
litigation and final disposition of any claims which may have been or may be
made against the Buyer in connection with the Business or (ii) for any other
reasonable business purpose. Following the Closing, the Buyer shall prepare, on
behalf of the Company, all regularly prepared Company financial reports and
statements for periods up to and including the Closing Date, and shall cooperate
with and provide assistance to the Parent and the Company in their financial and
tax reporting obligations for the periods up to and including the Closing Date.

                                       5

<PAGE>

      4.2 Mail. The Parent and the Company authorize and empower the Buyer on
and after the Closing Date to receive and open all mail received by the Buyer
relating to the Business or the Assets and to deal with the contents of such
communications in any proper manner. The Parent and the Company shall promptly
deliver to the Buyer any mail or other communication received by them after the
Closing Date pertaining to the Business or the Assets. The Buyer shall promptly
deliver to the Parent any mail or other communication received by it after the
Closing Date pertaining to the Excluded Assets or Retained Liabilities, and any
cash, checks or other instruments of payment in respect of the Excluded Assets.

      4.3 No Consent Contracts. To the extent that any contract of the Company
included in the Assets may not be assigned without the consent of any third
party, and such consent is not obtained prior to Closing (such contracts
referred to as "NO CONSENT CONTRACTS"), this Agreement and any assignment
executed at Closing pursuant hereto shall not constitute an assignment thereof,
but to the extent permitted by law shall constitute an equitable assignment by
the Company and assumption by the Buyer of the Company's rights and obligations
under the applicable No Consent Contract, with the Company making available to
the Buyer the benefits thereof and the Buyer performing the obligations
thereunder on the Company's behalf.

      4.4 Preparation and Filing of Certain Tax Forms. The Buyer shall prepare
and timely file all Forms W-2, 940, 941 and 1099 with all appropriate
Governmental Entities, including without limitation any summary schedules and
transmittal forms, as well as any similar filings required by any state or local
Governmental Entity, with respect to all wages and other reportable payments for
the calendar year 2004. As used herein, "GOVERNMENTAL ENTITY" means any court or
tribunal in any jurisdiction (domestic or foreign) or any public, governmental
or regulatory body, agency, department, commission, board, bureau or other
authority or instrumentality, domestic or foreign. The Buyer shall pay all
administrative amounts owed as a result of or otherwise related to such filings
with the exception of any tax, interest, or penalties associated with periods
prior to the Closing. The Company will pay, on or before they become due, any
employment taxes withheld by it which have not been previously paid. The Buyer,
Parent and the Company shall cooperate in making all such filings and shall make
available to the others such information as any of them requires to assure such
filings are made on a timely and accurate basis.

      4.5 The Parent Name and Logos. As soon as practicable (but in any event
within 90 days) after the Closing Date, the Buyer, at its expense, shall remove
all the Parent and its affiliates' names and logos from all of the Assets.
Except as specifically provided in Section 1, nothing in this Agreement shall
constitute a license or authorization for the Buyer to use in any manner any
name, logo or mark owned by or licensed to the Company, the Parent or their
respective affiliates which bears any reference to IES or any subsidiary of IES
other than the Company. The name "Goss" and "Goss Electric" shall become the
exclusive property of the Buyer following the Closing and shall not be used by
the Company, Parent or their respective affiliates; provided that Parent will be
given a reasonable period of time (not to exceed 60 days) to change the
Company's name after the Closing Date.

      4.6 Leased Assets. At the Closing, the Buyer, at its expense, shall pay
off or refinance the leases on the vehicles listed on Schedule 4.6 attached
hereto, and in connection therewith shall obtain the release of Parent and the
Company for all liability under such vehicle leases. As soon as

                                       6

<PAGE>

practicable (but in any event within 90 days) after the Closing Date, the Buyer,
at its expense, shall pay off or refinance the leases on the other assets listed
on Schedule 4.6 attached hereto, and in connection therewith shall obtain the
release of Parent and the Company for all liability under such leases.

      4.7 Hyundai Change Orders. Buyer agrees that it shall pay over to the
Company, within three days of receipt, one half of the net amounts collected
(such net amounts collected representing the total collections, net of
reasonable costs of collection, including reasonable attorneys fees) after the
Closing Date by the Buyer or its assigns with respect to any of the change
orders or claims listed on Schedule 4.7 attached hereto. At any time following
the Closing, Parent will have the right on reasonable notice and during normal
business hours to audit the progress of the collection effort and determine
whether Schedule 4.7 represents a complete listing of all unbooked change orders
related to the Hyundai facility in existence on the Closing Date.

      4.8 Chubb Bonds. Buyer agrees that at the Closing it shall execute and
deliver to the Federal Insurance Company and its subsidiary or affiliated
insurers and any applicable co-sureties (collectively, "FEDERAL"), a General
Agreement of Indemnity in the form attached as Exhibit B, pursuant to which
Buyer and Guarantor agree to (i) indemnify Federal with respect to the
performance and completion of the bonded obligations as set forth therein; and
(ii) replace within ninety (90) days the bonds identified as Cancelable Bonds
therein. Buyer further agrees to continue to provide to Federal monthly written
reports (with a copy to the Parent) as to the progress of the completion of the
bonded jobs. Buyer and Guarantor further agree to provide, from time to time and
at the request of the Parent, a certificate or certificates certifying that the
Cancelable Bonds have been replaced, and as to such other matters concerning the
performance by the Buyer of its post-closing obligations under this Agreement as
Parent shall request.

      4.9 Retained Claims. The Company shall retain liability for certain
insured claims as set forth in Schedule 1.5, paragraph 5 (the "RETAINED
CLAIMS"). The Buyer and the Guarantor agree to cooperate with the Company and
the Parent in the defense of the Retained Claims and to make available the
Buyer's personnel and facilities for that purpose. The Company shall retain as
Excluded Assets and not transfer to the Buyer all books and records associated
with the Retained Claims, as well as any reserves established on the books of
the Company for the Retained Claims, which reserves shall be paid in cash by the
Buyer to the Company at Closing.

5.    INDEMNIFICATION.

      5.1 Survival. The representations and warranties of the Company, the
Parent, the Buyer and the Guarantor contained in this Agreement, any schedules
delivered by or on behalf of the Company and the Buyer pursuant to this
Agreement, or in any certificate, instrument, agreement or other writing
delivered by or on behalf of the Company, the Parent or the Buyer pursuant to
this Agreement shall survive the consummation of the transactions contemplated
herein; provided that all such representations and warranties of the Company and
the Parent shall be of no further force and effect, and no claim for
indemnification by the Buyer pursuant to this Section 5 may be brought for any
reason, after the expiration of twelve (12) months from the Closing Date (the
"SURVIVAL PERIOD"), except for the representations and warranties contained in
Section 3.1(c), which shall

                                       7

<PAGE>

survive indefinitely. Anything to the contrary notwithstanding, a claim for
indemnification which is made but not resolved prior to the expiration of the
Survival Period may be pursued and resolved after such expiration.

      5.2 Indemnification by the Company.

            (a) In accordance with and subject to the provisions of this Section
      5, the Company and the Parent shall indemnify and hold harmless the Buyer
      from and against and in respect of any and all loss, damage, diminution in
      value, liability, cost and expense, including reasonable attorneys' fees
      and amounts paid in settlement (collectively, the "BUYER INDEMNIFIED
      LOSSES"), suffered or incurred by the Buyer by reason of, or arising out
      of (i) any misrepresentation or breach of representation or warranty of
      the Company or the Parent contained in this Agreement, or in any schedules
      delivered to the Buyer by or on behalf of the Company or the Parent
      pursuant to this Agreement; (ii) the breach of any covenant or agreement
      of the Company or the Parent contained in this Agreement; or (iii) the
      Retained Liabilities.

            (b) The Company and the Parent shall reimburse the Buyer on demand
      for any Buyer Indemnified Losses suffered by the Buyer with respect to
      matters other than claims, actions or demands brought, made or instituted
      by a third party ("THIRD PARTY CLAIMS"). With respect to Third Party
      Claims, the Company and the Parent shall reimburse the Buyer on demand for
      any Buyer Indemnified Losses suffered by the Buyer, based on the judgment
      of any court of competent jurisdiction or pursuant to a bona fide
      compromise or settlement in respect of any Buyer Indemnified Losses. The
      Company and the Parent shall have the opportunity to defend at their
      expense any claim, action or demand for which the Buyer claims indemnity
      against the Company or the Parent; provided that: (i) the defense is
      conducted by reputable counsel; (ii) the defense is expressly assumed in
      writing within twenty (20) days after written notice of the claim, action
      or demand is delivered to the Company and the Parent; and (iii) counsel
      for the Buyer may participate at all times and in all proceedings (formal
      and informal) relating to the defense, compromise and settlement of the
      claim, action or demand at the expense of the Buyer.

      5.3 Indemnification by the Buyer.

            (a) In accordance with and subject to the provisions of this Section
      5, the Buyer and Guarantor, jointly and severally, shall indemnify and
      hold harmless the Company, the Parent and their respective affiliates (for
      purposes of this Section 5, the "COMPANY INDEMNITEES") from and against
      and in respect of any and all loss, damage, diminution in value,
      liability, cost and expense, including reasonable attorneys' fees and
      amounts paid in settlement (collectively, the "COMPANY INDEMNIFIED
      LOSSES"), suffered or incurred by the Company Indemnitees by reason of, or
      arising out of (i) any misrepresentation or breach of representation or
      warranty of the Buyer or Guarantor contained in this Agreement, or in any
      schedules delivered to the Company or the Parent by or on behalf of the
      Buyer or Guarantor pursuant to this Agreement; (ii) or the breach of any
      covenant or agreement of the Buyer or Guarantor contained in this
      Agreement; (iii) the Assumed Liabilities, including, without limitation,
      any liability to sureties with respect to bonded jobs; or (iv) the
      operation of the

                                       8

<PAGE>

      Business following the Closing, including, but not limited to, any claims
      made by Transferred Employees concerning COBRA, the WARN Act, unemployment
      claim liability, or any similar matters as a result of the termination by
      Buyer of the Transferred Employees.

            (b) The Buyer and the Guarantor, jointly and severally (the "BUYER
      INDEMNIFYING PARTIES"), shall reimburse the Company Indemnitees on demand
      for any Company Indemnified Losses suffered by the Company Indemnitees
      with respect to matters other than Third Party Claims. With respect to
      Third Party Claims, the Buyer Indemnifying Parties shall reimburse the
      Company Indemnitees on demand for any Company Indemnified Losses suffered
      by the Company Indemnitees, based on the judgment of any court of
      competent jurisdiction or pursuant to a bona fide compromise or settlement
      in respect of any Company Indemnified Losses. The Buyer Indemnifying
      Parties shall have the opportunity to defend at their expense any claim,
      action or demand for which the Company Indemnitees claim indemnity against
      the Buyer Indemnifying Parties; provided that: (i) the defense is
      conducted by reputable counsel; (ii) the defense is expressly assumed in
      writing within twenty (20) days after written notice of the claim, action
      or demand is delivered to the Buyer Indemnifying Parties; and (iii)
      counsel for the Company and the Parent may participate at all times and in
      all proceedings (formal and informal) relating to the defense, compromise
      and settlement of the claim, action or demand at the expense of the
      Company and the Parent.

      5.4 Limitation and Payment on Claims. No claim shall be brought under this
Section 5 for breach of any representation or warranty, and no party hereto
shall be entitled to receive any payment with respect thereto, until such time
as, and only to the extent that, the aggregate amount of such claim(s) that such
party has equals or exceeds $100,000 (the "DEDUCTIBLE"); provided, however, that
the Deductible shall not apply to any obligations under Section 2.3. Anything to
the contrary notwithstanding, the Company and the Parent shall not be liable
under this Section 5 for Buyer Indemnified Losses in excess of the Purchase
Price.

      5.5 Sole Remedy. The sole remedy of the Company, the Parent and the Buyer
Indemnifying Parties for breach of the representations and warranties set forth
in Section 3 shall be pursuant to this Section 5.

6.    DISPUTE RESOLUTION.

      6.1 Arbitration.

            (a) Any controversy, dispute or claim arising out of or relating in
      any way to this Agreement or the other agreements contemplated by this
      Agreement or the transactions arising hereunder (including the validity,
      interpretation or applicability of this Section 6.1) shall be settled
      exclusively by final and binding arbitration in Houston, Texas. Such
      arbitration will apply the laws of the State of Texas and the commercial
      arbitration rules of AAA to resolve the dispute, and will be administered
      by the AAA.

            (b) Written notice of arbitration must be given within one year
      after the notifying party has knowledge of accrual of the claim on which
      the notice is based. If the

                                       9

<PAGE>

      claiming party fails to give notice of arbitration within that time, the
      claim shall be deemed to be waived and shall be barred from either
      arbitration or litigation.

            (c) Such arbitration shall be conducted by one independent and
      impartial arbitrator to be selected by mutual agreement of the parties, if
      possible. If the parties fail to reach agreement regarding appointment of
      an arbitrator within thirty (30) days following receipt by one party of
      the other party's notice of arbitration, the arbitrator shall be selected
      from a list or lists of proposed arbitrators submitted by AAA. Unless the
      parties agree otherwise, the arbitrator shall be a licensed attorney with
      at least ten years of experience in the practice of law. The selection
      process shall be that which is set forth in the AAA commercial arbitration
      rules then prevailing, except that (A) the number of preemptory strikes
      shall not be limited and (B), if the parties fail to select an arbitrator
      from one or more lists, AAA shall not initially have the power to make an
      appointment but shall continue to submit additional lists until an
      arbitrator has been selected, but if no such arbitrator is selected within
      sixty (60) days after the receipt of the first notice of arbitration, the
      AAA shall have the power to make an appointment and shall promptly do so.
      Initially, however, promptly following its receipt of a request to submit
      a list of proposed arbitrators, AAA shall convene the parties in person or
      by telephone and attempt to facilitate their selection of an arbitrator by
      agreement. If the arbitrator should die, withdraw or otherwise become
      incapable of serving, a replacement shall be selected and appointed in a
      like manner.

            (d) The arbitrator shall render an opinion setting forth findings of
      fact and conclusions of law with the reasons therefor stated. A transcript
      of the evidence adduced at the hearing shall be made and shall, upon
      request, be made available to either party. The fees and expenses of the
      arbitrator shall be shared equally by the parties and advanced by them
      from time to time as required; provided that at the conclusion of the
      arbitration, the arbitrator may award costs and expenses (including the
      costs of the arbitration previously advanced and the fees and expenses of
      attorneys, accountants and other experts). No pre-arbitration discovery
      shall be permitted, except that the arbitrator shall have the power in his
      or her sole discretion, on application by either party, to order
      pre-arbitration examination of the witnesses and documents that the other
      party intends to introduce in its case-in-chief at the arbitration
      hearing. The arbitrator shall render his or her opinion and/or award
      within ninety (90) days of the conclusion of the arbitration hearing. The
      arbitrator shall not be empowered to award to either party any punitive
      damages in connection with any dispute between them arising out of or
      relating in any way to this Agreement or the other agreements contemplated
      hereby or the transactions arising hereunder or thereunder, and each party
      hereby irrevocably waives any right to recover such damages. The
      arbitration hearings and award shall be maintained in confidence.

Notwithstanding anything to the contrary provided in this Section 6.1 and
without prejudice to the above procedures, either party may apply to any court
of competent jurisdiction for temporary injunctive or other provisional judicial
relief if such action is necessary to avoid irreparable damage or to preserve
the status quo until such time as the arbitrator is selected and available to
hear such party's request for temporary relief. The award rendered by the
arbitrator shall be final and not subject to judicial review and judgment
thereon may be entered in any court of competent jurisdiction.

                                       10

<PAGE>

7.    EMPLOYEE MATTERS.

      7.1 Hiring.

            (a) The Buyer shall hire (subject to each employee's agreement),
      effective as of the Closing Date, all of the employees of the Company on
      the day immediately prior to the Closing Date, active or inactive (such
      employees being hereafter referred to as the "TRANSFERRED EMPLOYEES") at a
      comparable job and at a rate of pay not less than each such Transferred
      Employee's pay as of September 30, 2004. Upon request of the Buyer, the
      Company shall provide the Buyer reasonable access to data (including
      computer data) regarding the ages, dates of hire, compensation and job
      description of the Transferred Employees.

            (b) The Buyer shall assume and be responsible for any severance
      costs associated with the termination of the Transferred Employees'
      employment with the Company. The Buyer shall discharge all liabilities and
      claims based on occurrences or conditions first occurring or commencing on
      or after the Closing Date with respect to Transferred Employees arising
      out of their employment with the Buyer after the Closing Date, including,
      but not limited to, any claims arising out of any employee benefit plan,
      policy, program or arrangement maintained at any time by the Buyer (a
      "BUYER PLAN" or collectively, the "BUYER PLANS"), except Buyer shall not
      assume any liabilities with respect to the WARN Act or COBRA benefits for
      any terminations occurring prior to the Closing Date (unless provided
      otherwise by law or pursuant to applicable regulations) nor shall the
      Company or the Parent be liable under the WARN Act, COBRA, or state
      unemployment claims law for any Transferred Employee terminated by Buyer
      after the Closing.

            (c) At Closing, the Buyer shall establish and make available a group
      medical plan for the Transferred Employees and their dependents that is
      substantially similar to the group medical plan available to the
      Transferred Employees immediately prior to Closing. The Buyer shall credit
      the Transferred Employees with all service of the Transferred Employees
      recognized under the employee benefit plans, policies, programs, or
      arrangements maintained by the Parent or the Company (the "PARENT PLANS")
      as service with the Buyer for purposes of eligibility to participate,
      vesting and levels of benefits available, under all Buyer Plans. The Buyer
      shall waive any coverage waiting period, pre-existing condition and
      actively-at-work requirements under the Buyer Plans for the Transferred
      Employees and shall provide that any expenses incurred before the Closing
      Date by a Transferred Employee (and his or her dependents) during the
      calendar year of the Closing shall be taken into account for purposes of
      satisfying the applicable deductible, coinsurance and maximum
      out-of-pocket provisions, and applicable annual and/or lifetime maximum
      benefit limitations of the Buyer Plans. The Buyer Plans shall not require
      contributions by Transferred Employees at a rate that exceeds the rate in
      effect for other similarly situated employees of the Buyer. Any reports or
      other information provided to Buyer by the Company or the Parent in
      connection with Buyer performing his obligations under this Section 7.1(c)
      shall be at the sole expense of the Buyer.

                                       11

<PAGE>

      7.2 Benefits. Except as provided in Section 7.1(b), the Buyer shall be
responsible for the payment of all amounts of wages, bonuses and other
remuneration (including discretionary benefits and bonuses) payable to the
Transferred Employees of the Company accrued with respect to periods on or prior
to the Closing (except for any employment taxes actually withheld by the
Company) together amounts payable to such employees in connection with events
occurring on or prior to the Closing. In addition, the Buyer shall be
responsible for:

            (a) all vacation pay and pay for other compensated absences earned
      or accrued by the Transferred Employees as of the close of business on the
      Closing Date to the appropriate employee, including any related payroll
      burden (FICA and other pension or other employee benefit plan
      contributions and employment taxes) with respect thereto to the
      appropriate Governmental Entity or other person, to the extent such pay
      has been accrued on the books of the Company at such close of business,
      based upon the remuneration of such employees normally used in computing
      such pay for other compensated absences; and

            (b) amounts accrued under the Integrated Electrical Services, Inc.
      401(k) Retirement Savings Plan (the "PARENT 401(k) PLAN") for the
      Transferred Employees as of the Closing Date but not yet transferred to
      the trustee of the Parent 401(k) Plan, including without limitation, the
      accrued match, accrued payroll deductions representing elective deferrals,
      loan repayments and accrued profit sharing contribution, if any.

      7.3 Parent 401(k) Plan. The Company, the Parent and the Buyer agree that,
as soon as practicable after Closing, but in any event within 90 days of the
Closing Date, the account balances in the Parent 401(k) Plan of the Transferred
Employees shall be transferred to a qualified 401(k) retirement savings plan
established by the Buyer (the "BUYER'S 401(k) PLAN") in accordance with Section
414(l) of the Internal Revenue Code of 1986, as amended (the "CODE"), and the
regulations promulgated thereunder. In connection with such transfer, the
following provisions shall apply:

            (a) The account balances of the Transferred Employees transferred to
      the Buyer's 401(k) Plan shall be subject to the provisions of the Buyer's
      401(k) Plan effective as of the date of transfer; provided, however that
      the Buyer's 401(k) Plan shall continue any benefits under the Parent
      401(k) Plan as required under Section 411(d)(6) of the Code; and

            (b) The outstanding loan of any Transferred Employee shall not be in
      default as a result of the Transferred Employee's termination of
      employment with the Parent or the Company, but such loan shall be
      transferred to the Buyer's 401(k) Plan in accordance with (a) above.

The Buyer shall provide acceptable evidence to the Parent that the Buyer's
401(k) Plan meets the requirements of Section 401(a) of the Code prior to the
date of such transfer. The Buyer, the Parent and the Company agree to take
whatever action, including but not limited to plan amendments and resolutions,
to effectuate the transfer of the Transferred Employee's account balances
according to this section from the Parent 401(k) Plan to the Buyer's 401(k)
Plan.

                                       12

<PAGE>

Notwithstanding the foregoing, nothing in this Section 7 shall be deemed or
construed to give rise to any rights, claims, benefits, or causes of action to
any Transferred Employee or third party whatsoever (including any Governmental
Entity).

8.    MISCELLANEOUS.

      8.1 Notices. All notices and communications required or permitted
hereunder shall be in writing and may be given by (a) depositing the same in the
United States mail, addressed to the party to be notified, postage prepaid and
registered or certified with return receipt requested, (b) by delivering the
same in person to an officer or agent of such party, or (c) overnight delivery
service. Such notice shall be deemed received on the date (i) on which it is
actually received if sent by overnight delivery service or hand delivery, or
(ii) on the third business day following the date on which it is mailed. For
purposes of notice, the addresses of the parties hereto shall be:

               If to the Parent or the Company:

                        Integrated Electrical Services, Inc.
                        1800 West Loop South, Suite 500
                        Houston, Texas 77027
                        Attention: Chief Financial Officer

               With a copy to:

                        Integrated Electrical Services, Inc.
                        1800 West Loop South, Suite 500
                        Houston, Texas 77027
                        Attention: Chief Legal Officer

               If to the Buyer or Guarantor:

                        Goss, Inc.
                        137 Woodall Road
                        Decatur, AL  35601
                        Attention: Robert Carl Goss, President

               With a copy to:

                        Lawrence C. Weaver
                        Eyster Key Tubb Weaver & Roth, LLP
                        P. O. Box 1607
                        Decatur, AL 35602

or such other address as any party hereto shall specify pursuant to this Section
8.1 from time to time.

      8.2 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

                                       13

<PAGE>

      8.3 Governing Law. The validity and effect of this Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Texas, without regard to its conflicts of laws rules.

      8.4 Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective permitted heirs,
successors and assigns. Neither the Company, the Parent nor the Buyer may
assign, delegate or otherwise transfer any of their rights or obligations under
this Agreement without the written consent by each other party hereto.

      8.5 Partial Invalidity and Severability. All rights and restrictions
contained herein may be exercised and shall be applicable and binding only to
the extent that they do not violate any applicable laws and are intended to be
limited to the extent necessary to render this Agreement legal, valid and
enforceable. If any term of this Agreement, or part thereof, not essential to
the commercial purpose of this Agreement shall be held to be illegal, invalid or
unenforceable by a forum of competent jurisdiction, it is the intention of the
parties that the remaining terms hereof, or part thereof, shall constitute their
agreement with respect to the subject matter hereof, and all such remaining
terms, or parts thereof, shall remain in full force and effect. To the extent
legally permissible, any illegal, invalid or unenforceable provision of this
Agreement shall be replaced by a valid provision which will implement the
commercial purpose of the illegal, invalid or unenforceable provision.

      8.6 Waiver. Any term or condition of this Agreement may be waived at any
time by the party which is entitled to the benefit thereof, but only if such
waiver is evidenced by a writing signed by such party. No failure on the part of
any party hereto to exercise, and no delay in exercising, any right, power or
remedy created hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, power or remedy by either party preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. No waiver by either party hereto of any breach of or default in any term
or condition of this Agreement shall constitute a waiver of or assent to any
succeeding breach of or default in the same or any other term or condition
hereof.

      8.7 Headings. The headings of particular provisions of this Agreement are
inserted for convenience only and shall not be construed as a part of this
Agreement or serve as a limitation or expansion on the scope of any term or
provision of this Agreement.

      8.8 Entire Agreement; Amendments. This Agreement supersedes all prior
discussions and agreements between the parties with respect to the subject
matter hereof (including without limitation any letters of intent executed by
the parties), and this Agreement contains the sole and entire agreement between
the parties with respect to the matters covered hereby. This Agreement shall not
be altered or amended except by an instrument in writing signed by or on behalf
of the party against whom enforcement is sought.

      8.9 Disclosure of Agreement Terms. Neither Buyer nor the Guarantor shall
disclose the terms and conditions of this Agreement to any person or entity
without the prior written consent of an executive officer of the Parent or as
required by applicable law or an order from a court or administrative body of
competent jurisdiction (but only to the extent so required and only after

                                       14

<PAGE>

giving reasonable prior notice to the Company and the Parent and cooperating
with the Company and the Parent in any efforts to legally oppose such
disclosure). The foregoing notwithstanding, the Buyer and the Guarantor shall be
permitted to make such disclosures to their accountants, lawyers, financial
institutions, lending sources and related parties as may be appropriate,
provided that such parties are bound by the foregoing nondisclosure provisions.

      8.10 Number and Gender. Where the context requires, the use of the
singular form herein shall include the plural, the use of the plural shall
include the singular, and the use of any gender shall include any and all
genders.

                  [Remainder of page intentionally left blank]

                                       15

<PAGE>

      IN WITNESS WHEREOF, this Agreement has been executed effective as of the
date set forth above.

                                   PARENT:

                                   INTEGRATED ELECTRICAL SERVICES, INC.

                                   By: /s/ Herbert R. Allen
                                       ---------------------------------------
                                   Name: Herbert R. Allen
                                   Title: Chief Executive Officer

                                   COMPANY:

                                   GOSS ELECTRIC COMPANY, INC.

                                   By: /s/ Curt L. Warnock
                                       ---------------------------------------
                                   Name: Curt L. Warnock
                                   Title: Vice President

                                   BUYER:

                                   GOSS, INC.

                                   By: /s/ Robert Carl Goss
                                       ---------------------------------------
                                           Robert Carl Goss, President

                                   GUARANTOR:

                                   /s/ Robert Carl Goss
                                   --------------------------------------------
                                   Robert Carl Goss

                                       16

<PAGE>

                                    EXHIBIT A

                BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT

      This BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT ("BILL OF SALE") is
entered into as of the 30th day of November 2004, by and among INTEGRATED
ELECTRICAL SERVICES, INC., a Delaware corporation (the "PARENT"), GOSS ELECTRIC
COMPANY, INC., a Delaware corporation (the "COMPANY") and GOSS, INC., an Alabama
corporation (the "BUYER").

                                    RECITALS

      WHEREAS, pursuant to the terms of that certain Asset Purchase Agreement
(the "PURCHASE AGREEMENT") dated as of even date herewith by and among the
Buyer, the Parent, the Company, and Carl Goss, individual, the Company and the
Parent agreed to convey the Assets to the Buyer and the Buyer agreed to assume
the Assumed Liabilities. In order to evidence such conveyance and assumption,
the parties desire to enter into this Bill of Sale.

      WHEREAS, all capitalized terms used herein but not defined herein shall
have the meanings ascribed to them in the Purchase Agreement.

                                   ASSIGNMENT

      NOW, THEREFORE, for and in consideration of the mutual covenants,
agreements, and benefits contained herein, the sum of TEN DOLLARS ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Parent do hereby BARGAIN, GRANT, SELL,
CONVEY, TRANSFER, DELIVER and ASSIGN unto Buyer all the Assets.

      The Assets are hereby conveyed free and clear of all encumbrances other
than the Permitted Encumbrances.

      TO HAVE AND TO HOLD the Assets unto the Buyer and its successors and
assigns forever; and the Company and the Parent do hereby bind themselves and
their successors and assigns to WARRANT AND FOREVER DEFEND title to the Assets
in accordance with the terms and provisions of the Purchase Agreement.

      The Buyer, upon execution below, accepts this Bill of Sale, and to the
extent provided for in the Purchase Agreement, hereby assumes the Assumed
Liabilities, but no others.

      This assignment shall be binding upon and shall inure to the benefit of
the parties hereto and their respective permitted successors and assigns.

<PAGE>

      This Bill of Sale may be executed in any number of counterparts, and each
counterpart shall for all purposes be deemed to be an original.

      This Bill of Sale is subject to all terms and conditions contained in the
Purchase Agreement and nothing herein shall be deemed to alter, amend, or
supersede the Purchase Agreement, the terms of which shall in all respects be
controlling.

                  [Remainder of page intentionally left blank]

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Bill of Sale
effective as of the date set forth above.

                                    PARENT:

                                    INTEGRATED ELECTRICAL SERVICES, INC.

                                    By: ________________________________________
                                    Name: ______________________________________
                                    Title: _____________________________________

                                    COMPANY:

                                    GOSS ELECTRIC COMPANY, INC.

                                    By: ________________________________________
                                    Name: ______________________________________
                                    Title: _____________________________________

                                    BUYER:

                                    GOSS, INC.

                                    By: ________________________________________
                                    Name: ______________________________________
                                    Title: _____________________________________

<PAGE>

                                    EXHIBIT B

                     FORM OF GENERAL AGREEMENT OF INDEMNITY

                                (attached hereto)
<PAGE>

                       CHUBB GROUP OF INSURANCE COMPANIES

[CHUBB LOGO]

       15 Mountain View Road, P.O. Box 1615, Warren, New Jersey 07061-1615

                         GENERAL AGREEMENT OF INDEMNITY

      WHEREAS, the undersigned (hereinafter individually and collectively called
"Indemnitor") desires FEDERAL INSURANCE COMPANY or any of its subsidiary or
affiliated insurers (hereinafter called "Company") to execute bonds including
undertakings and other like obligations (hereinafter referred to as bond or
bonds) on its behalf and also desires the execution of bonds on behalf of
individuals, partnerships, corporations, limited liability companies or any
other similarly unincorporated associations of members (hereinafter called
"Affiliates").

      WHEREAS, from time to time the Indemnitor may be a participant in joint
ventures with others, and bonds will be required on behalf of the Indemnitor
along with the other participants in such joint ventures.

      WHEREAS, Indemnitor is the successor-in-interest to GOSS ELECTRIC COMPANY,
INC., A DELAWARE CORPORATION (along with any other affiliate or related entity
whose assets have been or will be assigned to Indemnitor hereinafter
individually and collectively called "Seller") as the assignee of all bonded
contract obligations, which Indemnitor has expressly assumed without
reservation.

      NOW, THEREFORE, in consideration of the Company executing said bond or
bonds, and the undersigned Indemnitor hereby requests the execution thereof, and
in consideration of the consent of Company to the assignment and assumption of
the bonded obligations formerly undertaken by the Seller, as well as the sum of
One Dollar paid to the Indemnitor by said Company, the receipt whereof is hereby
acknowledged, the Indemnitor, being benefited by the execution and delivery of
said bond or bonds, including, without limitation all Bonds previously issued
prior to the date of this Agreement for the Seller, the bonded obligations of
which have been expressly assumed without reservation by Indemnitor(s) and as to
which Indemnitor(s) have agreed, and do hereby agree, to assume full
responsibility for work in place as well as the prompt and proper performance
and completion of all such bonded obligations, including, without limitation
those bonded obligations listed on Exhibit A attached hereto, hereby agrees that
it will at all times jointly and severally indemnify and save harmless said
Company from and against any and all loss, cost, damage or expense, including
court costs and attorneys' fees, which it shall at any time incur by reason of
its execution and/or delivery of said bond or bonds or its payment of any claim
or liability thereunder and will place the said Company in funds to meet all its
liability under said bond or bonds promptly on request and before it may be
required to make any payment thereunder and that the voucher or other evidence
of payment by said Company of any such loss, cost, damage, expense, claim, or
liability shall be prima facie evidence of the fact and amount of the
Indemnitor's liability to said Company under this Agreement.

      IT IS UNDERSTOOD AND AGREED that with respect to any bonds on behalf of
the Indemnitor participating in a joint venture that if specific application is
filed with the Company for such bonds the liability of the Indemnitor to the
Company with respect to such joint venture bonds shall be limited to the amount
expressly set forth in said application.

      IT IS UNDERSTOOD AND AGREED that all of the terms, provisions, and
conditions of this Agreement shall be extended to and for the benefit not only
of the Company either as a direct writing company or as a co-surety or reinsurer
but also for the benefit of any surety or insurance company or companies with
which the Company may participate as a co-surety or reinsurer and also for the
benefit of any other company which may execute any bond or bonds at the request
of the Company on behalf of the Indemnitor.

      IT IS UNDERSTOOD AND AGREED that this Agreement is in addition to all
other rights and agreements which Company may have or be a party to in
connection with Bonds previously issued for the benefit of Seller and that the
assumption of responsibility therefor by Indemnitors as herein provided shall
not constitute a waiver or release by Company of any rights Company may have to
seek and recover indemnity from third parties having liability in connection
with the issuance of such Bonds including, but not limited to, the obligations
and liabilities of integrated Electrical Services, Inc., Goss Electric Company,
Inc. or their affiliates.

      IT IS UNDERSTOOD AND AGREED that, notwithstanding anything herein to the
contrary, Indemnitor's agreements, covenants, and all obligations under this
General Agreement of Indemnity is limited to (1) the obligations assumed by
Indemnitor under the Asset Purchase Agreement by and among Integrated Electrical
Services, Inc., Goss Electric Company, Inc., Goss, Inc., and Robbert Carl Goss,
and (2) Company's obligations under the bonds listed on Exhibit A attached
hereto. Furthermore, Indemnitor has acknowledged and agreed that Indemnitor will
replace Bond No. 81967807, Bond No. 81955935, Bond No. 81878250, Bond No.
81889179, and Bond No. 81889027 identified on Exhibit A (the "Replaceable
Bonds") no later than ninety (90) days from the execution of this Agreement, and
hereby acknowledges and consents that the Replaceable Bonds will be canceled
upon the earlier of (i) the date of issuance of replacement bonds or (ii) the
date upon which Federal issues notice of cancellation in compliance with the
terms the Replaceable Bond(s) to be canceleed thereby. Indemnitor's obligation
under this Agreement with respect to any bond or bonds canceled or replaced as
contemplated herein will remain with respect to such liability accruing under
said bond or bonds.

      IT IS FURTHER UNDERSTOOD AND AGREED that the Indemnitor, its heirs,
successors and assigns are jointly and severally bound by the foregoing
conditions of this Agreement.

<PAGE>

      IN WITNESS WHEREOF the Indemnitor has signed this instrument this, the
______ day of _________________ , 2004.

WITNESS:                            GOSS, INC., an Alabama Corporation

_____________________________       By: ________________________________________
                                            Robert Carl Goss, President

WITNESS:                            ROBERT CARL GOSS, an Alabama resident

_____________________________       ____________________________________________

                                       2

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