Document:

EX-10.2

     

    
      

      

    

     

    EMPLOYMENT
      AGREEMENT

     

    AGREEMENT,
      dated as of November 22nd,
      2006
      (the "Effective
      Date"),
      by and
      between Integrated Alarm Services Group, Inc., a Delaware corporation (the
      "Company"),
      and
      Robert Heintz, an individual residing at 923 Woodview Road, Brielle, NJ 08730
      (the "Executive").

     

    WHEREAS,
      the Company has determined that it is in the best interests of the Company
      and
      its shareholders to enter into an employment agreement with the Executive,
      and
      the Executive is willing to serve as an employee of the Company, subject to
      the
      terms and conditions of this Agreement; and

     

    WHEREAS,
      the Company and the Executive entered into an employment agreement, dated as
      of
      October 1, 2002 (the "Existing
      Employment Agreement");
      and

     

    WHEREAS,
      the Company and the Executive desire to provide for the continued employment
      of
      the Executive and to supersede the Existing Employment Agreement with this
      Agreement;

     

    NOW,
      THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     

    1. Employment
      and Duties.

     

    (a) General.
      The
      Executive shall serve as Chief Operating Officer, Criticom International,
      reporting to the Chief Executive Officer (the "CEO")
      of the
      Company. The Executive shall have such duties and responsibilities, commensurate
      with the Executive's position, as may be assigned to the Executive from time
      to
      time by the Board of Directors (the "Board")
      or the
      CEO of the Company. The Executive shall perform any and all duties related
      to
      his position with the Company and shall be available to confer and consult
      with
      and advise the officers and directors of the Company at such times as the
      Company may require. The Executive's principal place of employment shall be
      Manasquan, New Jersey provided,
      however,
      that
      the Executive understands and agrees that he will be required to travel from
      time to time for business reasons. 

     

    (b) Exclusive
      Services.
      For so
      long as the Executive is employed by the Company, the Executive shall devote
      his
      full-time working time to his duties hereunder, shall faithfully serve the
      Company, shall in all respects conform to and comply with the lawful and good
      faith directions and instructions given to him by the CEO and shall use his
      best
      efforts to promote and serve the interests of the Company. Further, the
      Executive shall not, directly or indirectly, render services to any other person
      or organization without the consent of the Company or otherwise engage in
      activities that would interfere with the faithful performance of his duties
      hereunder. 

     

    2. Term
      of Employment. The
      Executive's employment under this Agreement shall commence as of the Effective
      Date and shall terminate on the earlier of (i) the first anniversary of the
      Effective Date and (ii) the termination of the Executive's employment under
      this Agreement; provided, however, that the term of the Executive's employment
      shall be automatically extended without further action of either party for
      additional one-year periods unless written notice of either party's intention
      not to extend has been given to the other party at least 90 days prior to the
      expiration of the then effective Term. The period from the Effective Date until
      the termination of the Executive's employment under this Agreement is referred
      to as the "Term".

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Compensation
      and Other Benefits. Subject to the provisions of this Agreement, the Company
      shall pay and provide the following compensation and other benefits to the
      Executive during the Term as compensation for services rendered
      hereunder:

     

    (a) Base
      Salary.
      The
      Company shall pay to the Executive a salary (the "Base
      Salary")
      at the
      rate of $170,000 per annum, payable in substantially equal installments at
      such
      intervals as may be determined by the Company in accordance with its ordinary
      payroll practices as established from time to time. 

     

    (b) Bonus.
      In
      addition to the Base Salary, the Executive shall be eligible to earn for each
      calendar year ending during the Term an annual incentive bonus (the
“Bonus”)
      based
      on the achievement of one or more performance goals, targets, measurements
      and
      other factors (collectively, the “Performance
      Goals”)
      established for such year by the Compensation Committee of the Board (the
“Committee”).
      The
      Executive’s target annual bonus (the “Target
      Bonus”)
      and
      the applicable Performance Goals will be established by the Committee within
      90
      days of the first day of the year to which such Bonus relates. Payment of the
      Executive’s Bonus for any year will be based upon the achievement of the
      Performance Goals established by the Committee for that year (including, without
      limitation, the exercise of the Committee’s negative discretion under Section
      162(m) of the Internal Revenue Code of 1986, as amended (the “Code”)).
      The
      actual bonus paid may be higher or lower than the Target Bonus for over- or
      under-achievement of the Performance Goals (including, without limitation,
      the
      exercise of the Committee’s negative discretion under Section 162(m) of the
      Code), as determined by the Committee. Subject to Section 4 hereof, a
      Bonus, if any, shall be payable by March 15th
      of the
      succeeding calendar year or as soon thereafter as may be administratively
      practicable.

     

    (c) Company
      Car.
      Employee shall receive a leased car of his choice paid for by the Employer,
      at a
      cost of not more than $1,000 per month.

     

    (d) Savings
      and Retirement Plans.
      The
      Executive shall be entitled to participate in all savings and retirement plans
      applicable generally to other senior executives of the Company, in accordance
      with the terms of the plans, as may be amended from time to time.

     

    (e) Welfare
      Benefit Plans.
      The
      Executive and/or his family shall be eligible to participate in and shall
      receive all benefits under the Company's welfare benefit plans and programs
      applicable generally to other senior executives of the Company, in accordance
      with the terms of the plans, as may be amended from time to time. The Company
      shall include the Executive in its health insurance program available to the
      Company's executive officers and shall pay 100% of the premiums for such
      program.

     

    (f) Expenses.
      The
      Company shall reimburse the Executive for reasonable travel and other
      business-related expenses incurred by the Executive in the fulfillment of his
      duties hereunder upon presentation of written documentation thereof, in
      accordance with the applicable expense reimbursement policies and procedures
      of
      the Company as in effect from time to time.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g) Paid
      Time Off.
      The
      Executive shall be entitled to 22 vacation days and 4 sick/personal days
      each year during the Term, which shall be referred to together as "paid time
      off." The extent to which unused paid time off from one year shall be carried
      forward to any later year shall be governed by the Company's paid time off
      policy in effect from time to time. Upon separation of employment, for any
      reason, paid time off accrued and not used shall be paid in accordance with
      the
      Company's paid time off policy then in effect, and the determination of the
      amount of paid time off accrued and not used shall be made by the Company in
      its
      sole discretion pursuant to such policy.

     

    4. Termination
      of Employment.

     

    (a) Termination
      for Cause; Resignation.
      (i) If,
      prior to the expiration of the Term, the Company terminates the Executive's
      employment for Cause, as defined in Section 4(a)(ii) hereof, or if the
      Executive resigns from his employment hereunder, the Executive shall only be
      entitled to payment of unpaid Base Salary through and including the date of
      termination or resignation and any other amounts or benefits required to be
      paid
      or provided by law or under any plan, program, policy or practice of the Company
      ("Other
      Accrued Compensation and Benefits").
      The
      Company shall have no further obligation to compensate the Executive under
      any
      other provision of this Agreement or any other severance or salary continuation
      arrangement of the Company.

     

    (ii)Termination
      for "Cause"
      shall
      mean termination of the Executive's employment because of:

     

    (A) any
      act
      or omission that constitutes a material breach by the Executive of any of his
      obligations under this Agreement;

     

    (B) the
      willful and continued failure or refusal of the Executive to satisfactorily
      perform the duties reasonably required of him as an employee of the
      Company;

     

    (C) the
      Executive's conviction of, or plea of nolo
      contendere
      to,
      (1) any felony or (2) another crime involving dishonesty or moral
      turpitude or which could reflect negatively upon the Company or any of its
      subsidiaries or affiliates (the "Company
      Group")
      or otherwise impair or impede its operations;

     

    (D) the
      Executive's engaging in any misconduct, negligence, act of dishonesty, violence
      or threat of violence (including any violation of federal securities laws)
      that
      is injurious to the Company Group;

     

    (E) the
      Executive's material breach of a written policy of the Company, the Company's
      Code of Ethics, or the rules of any governmental or regulatory body applicable
      to the Company; 

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (F) the
      Executive's refusal to follow the lawful and good faith directions of the Board;
      

     

    (G) the
      Executive's engaging in conduct that constitutes activity in competition with
      the Company Group; or

     

    (I) any
      other
      willful misconduct by the Executive which is materially injurious to the
      financial condition, business, or reputation of the Company Group.

     

    (b) Termination
      without Cause.
      (i) If,
      prior to the expiration of the Term, the Executive's employment is terminated
      by
      the Company without Cause, the Company (A) shall pay the Other Accrued
      Compensation and Benefits, if any, and (B) shall continue to pay the Executive
      the Base Salary at the rate in effect on the date the Executive's employment
      is
      terminated, for the period remaining in the Term on the day prior to the date
      the Executive's employment is terminated, in accordance with the Company's
      ordinary payroll practices. The Company shall have no further obligation to
      compensate the Executive under Section 4(c) or any other provision of this
      Agreement or any other severance or salary continuation arrangement of the
      Company.

     

    (ii)The
      Company shall not be required to make the payments and provide the benefits
      provided for under Section 4(b)(i) unless the Executive executes and
      delivers to the Company a release substantially in the form attached as
      Exhibit A and the release has become effective and irrevocable in its
      entirety.

     

    (iii)If,
      following a termination of employment without Cause, the Executive breaches
      the
      provisions of Sections 5 through 8 hereof, the Executive shall not be
      eligible, as of the date of such breach, for the payments described in
      Section 4(b)(i), and any and all obligations and agreements of the Company
      with respect to such payments shall thereupon cease.

    (c) Termination
      upon Change in Control.

     

    (i) Upon
      a
      Change in Control during the Term, the Term shall automatically be extended
      for
      1 year following the Change in Control. 

     

    (ii) In
      the
      event of the Executive's Involuntary Termination within 12 months after a Change
      in Control, provided such Change in Control occurs during the Term, (A) the
      Executive shall be eligible to receive a lump sum payment within 30 days of
      such
      termination equal to one times his Base Salary at the rate in effect immediately
      prior to such termination and (B) all stock options and warrants granted by
      the
      Company to the Executive under any plan prior to such termination shall vest,
      accelerate, and become immediately exercisable. The Company shall have no
      further obligation to compensate the Executive under Section 4(b)(i) or any
      other provision of this Agreement or any other severance or salary continuation
      arrangement of the Company. The Company shall not be required to make the
      payments and provide the benefits provided for under this Section 4(c)(ii)
      unless the Executive executes and delivers to the Company a release
      substantially in the form attached as Exhibit A and the release has become
      effective and irrevocable in its entirety.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iii) "Involuntary
      Termination"
      shall
      mean termination of the Executive's employment by the Company and its
      subsidiaries other than for Cause. The Executive shall be deemed to have
      incurred an Involuntary Termination if: (A) there is a Change in Control during
      the Term; and (B) within 12 months after such Change in Control, (1) the
      location of his principal place of employment is moved to a location that is
      more than 50 miles from the location of his principal place of employment
      immediately prior to such Change in Control, or (2) the Executive's Base Salary
      as in effect immediately prior to such Change in Control is reduced by more
      than
      10%; and (C) he thereafter resigns from employment within 30 days of such change
      of location of principal place of employment or such reduction in Base Salary.
      Except as provided in this Section 4(c), resignation from employment for any
      reason shall not be considered an Involuntary Termination. 

     

    (iv) A
      "Change
      in Control"
      shall
      occur if:

     

    (A) any
      "person" within the meaning of Section 14(d) of the Securities Exchange Act
      of
      1934, as amended, and any successor provisions thereto is or becomes the
      "beneficial owner" (as defined in Rule 13d-3 of the General Rules and
      Regulations under the Exchange Act), directly or indirectly, of securities
      of
      the Company representing 30% or more of the combined voting power of the
      Company's then outstanding securities entitled to vote in the election of
      directors of the Company;

     

    (B) during
      any twelve-month period (not including any period prior to the consummation
      of a
      Change in Control), individuals who at the beginning of such period constituted
      the Board and any new directors, whose election by the Board or nomination
      for
      election by the Company's stockholders was approved by a vote of at least
      one-half of the directors then still in office who either were directors at
      the
      beginning of the period or whose election or nomination for election was
      previously so approved, cease for any reason to constitute a majority thereof;
      

     

    (C) there
      occurs a reorganization, merger, consolidation or other corporate transaction
      involving the Company (a "Transaction"),
      in
      each case with respect to which the stockholders of the Company immediately
      prior to such Transaction do not, immediately after the Transaction, own more
      than 50% of the combined voting power of the Company or another corporation
      resulting from such Transaction, in substantially the same proportion of
      ownership as prior to such Transaction; or

     

    (D) all
      or
      substantially all of the assets of the Company are sold, liquidated or
      distributed.

     

    (d) Termination
      Due to Death or Disability.
      The
      Executive's employment with the Company shall terminate automatically on the
      Executive's death. In the event of the Executive's disability, the Company
      shall
      be entitled to terminate his employment. In the event of termination of the
      Executive's employment by reason of Executive's death or disability, the Company
      shall pay to the Executive (or his estate, as applicable) the Executive's Base
      Salary through and including the date of termination. For purposes of this
      Agreement, "disability"
      shall
      have the meaning set forth in the Company's long-term disability
      plan.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (e) Notice
      of Termination.
      Any
      termination of employment by the Company or the Executive shall be communicated
      by a written "Notice
      of Termination"
      to the
      other party hereto given in accordance with Section 22 of this Agreement.
      In the event of a termination by the Company for Cause, the Notice of
      Termination shall (i) indicate the specific termination provision in this
      Agreement relied upon, (ii) 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 and (iii) specify the date of
      termination, which date shall not be more than 30 days after the giving of
      such notice. The failure by the Company to set forth in the Notice of
      Termination any fact or circumstance which contributes to a showing of Cause
      shall not waive any right of the Company hereunder or preclude the Company
      from
      asserting such fact or circumstance in enforcing the Company's rights
      hereunder.

     

    (f) Resignation
      from Directorships and Officerships.
      The
      termination of the Executive's employment for any reason will constitute the
      Executive's resignation from (i) any director, officer or employee position
      the Executive has with the Company and (ii) all fiduciary positions
      (including as a trustee) the Executive holds with respect to any employee
      benefit plans or trusts established by the Company. The Executive agrees that
      this Agreement shall serve as written notice of resignation in this
      circumstance; provided,
      however,
      that
      the Executive shall execute such other documents as may be required by the
      Company in connection with such resignation.

     

    5. Confidentiality.

     

    (a) Confidential
      Information.
      (i) The
      Executive agrees that he will not at any time, except with the prior written
      consent of the Company Group or, to the extent permitted pursuant to subsection
      5(a)(ii), as required by law, directly or indirectly, reveal to any person,
      entity or other organization (other than any member of the Company Group or
      its
      respective employees, officers, directors, shareholders or agents) or use for
      the Executive's own benefit any information deemed to be confidential by any
      member of the Company Group ("Confidential
      Information")
      relating to the assets, liabilities, employees, goodwill, business or affairs
      of
      any member of the Company Group, including, without limitation, any information
      concerning past, present or prospective customers, manufacturing processes,
      marketing data, or other confidential information used by, or useful to, any
      member of the Company Group and known to the Executive by reason of the
      Executive's employment by, shareholdings in or other association with any member
      of the Company Group; provided
      that
      such Confidential Information does not include any information which is
      available to the general public or is generally available within the relevant
      business or industry other than as a result of the Executive's action.
      Confidential Information may be in any medium or form, including, without
      limitation, physical documents, computer files or disks, videotapes, audiotapes,
      and oral communications. 

     

    (ii)In
      the
      event that the Executive becomes legally compelled to disclose any Confidential
      Information, the Executive shall provide the Company with prompt written notice
      so that the Company may seek a protective order or other appropriate remedy.
      In
      the event that such protective order or other remedy is not obtained, the
      Executive shall furnish only that portion of such Confidential Information
      or
      take only such action as is legally required by binding order and shall exercise
      his reasonable efforts to obtain reliable assurance that confidential treatment
      shall be accorded any such Confidential Information. The Company shall promptly
      pay (upon receipt of invoices and any other documentation as may be requested
      by
      the Company) all reasonable expenses and fees incurred by the Executive,
      including attorneys' fees, in connection with his compliance with the
      immediately preceding sentence.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)Confidentiality
      of Agreement.
      The
      Executive agrees that, except as may be required by applicable law or legal
      process, during the Term and thereafter, he shall not disclose the terms of
      this
      Agreement to any person or entity other than the Executive's accountants,
      financial advisors, attorneys or spouse, provided
      that
      such accountants, financial advisors, attorneys and spouse agree not to disclose
      the terms of this Agreement to any other person or entity.

     

    (c)Exclusive
      Property.
      The
      Executive confirms that all Confidential Information is and shall remain the
      exclusive property of the Company Group. All business records, papers and
      documents kept or made by the Executive relating to the business of the Company
      Group shall be and remain the property of the Company Group. Upon the request
      and at the expense of the Company Group, the Executive shall promptly make
      all
      disclosures, execute all instruments and papers and perform all acts reasonably
      necessary to vest and confirm in the Company Group, fully and completely, all
      rights created or contemplated by this Section 5.

     

    6. Noncompetition.
      The Executive agrees that, for a period commencing on the Effective Date and
      ending one year after termination of employment for any reason (the "Restricted
      Period"), the Executive shall not, without the prior written consent of the
      Company, directly or indirectly, and whether as principal, investor, employee,
      officer, director, manager, partner, consultant, agent or otherwise, alone
      or in
      association with any other person, firm, corporation or other business
      organization, carry on a Competing Business (as hereinafter defined) in any
      geographic area in which the Company Group has engaged in a Competing Business
      (including, without limitation, any area in which any customer of the Company
      Group may be located). For purposes of this Section 6, carrying on a
      "Competing Business" means to engage in the business of wholesale monitoring
      and
      related support services, financing solutions and products within the security
      alarm industry, and any other business engaged in by the Company within 12
      months after termination of employment; provided, however, that nothing herein
      shall limit the Executive's right to own not more than 1% of any of the debt
      or
      equity securities of any business organization that is then filing reports
      with
      the Securities and Exchange Commission pursuant to Section 13 or 15(d) of
      the Securities Exchange Act of 1934, as amended. In the event the Executive
      is
      employed at will by the Company Group for any period after the end of the Term,
      this Section 6 shall remain effective until the first anniversary of the date
      of
      the Executive's termination of employment. 

     

    7. Non-Solicitation.
      The Executive agrees that, during the Restricted Period, the Executive shall
      not, directly or indirectly, (a) interfere with or attempt to interfere
      with the relationship between any person who is, or was during the then most
      recent three-month period, an employee, officer, representative or agent of
      the
      Company Group and any member of the Company Group, or solicit, induce or attempt
      to solicit or induce any of them to leave the employ of any member of the
      Company Group or violate the terms of their respective contracts, or any
      employment arrangements, with such entities or (b) induce or attempt to
      induce any customer, client, supplier, licensee or other business relation
      of
      any member of the Company Group to cease doing business with any member of
      the
      Company Group, or in any way interfere with the relationship between any member
      of the Company Group and any customer, client, supplier, licensee or other
      business relation of any member of the Company Group. As used herein, the term
      "indirectly" shall include, without limitation, the Executive's permitting
      the
      use of the Executive's name by any competitor of any member of the Company
      Group
      to induce or interfere with any employee or business relationship of any member
      of the Company Group.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    8. Assignment
      of Developments.

     

    (a) During
      the Executive’s employment, all Developments that are at any time made, reduced
      to practice, conceived or suggested by him, whether acting alone or in
      conjunction with others, shall be the sole and absolute property of the Company,
      free of any reserved or other rights of any kind on his part, and the Executive
      hereby irrevocably assigns, conveys and transfers any and all right, title
      and
      interest that he may have in such Developments to the Company Group. If such
      Developments were made, conceived or suggested by the Executive during or as
      a
      result of his employment relationship with the Company Group, the Executive
      shall promptly make full disclosure of any such Developments to the Company
      and,
      at the Company’s cost and expense, do all acts and things (including, among
      others, the execution and delivery under oath of patent and copyright
      applications and instruments of assignment) deemed by the Company to be
      necessary or desirable at any time in order to effect the full assignment to
      the
      Company of his right, title and interest, if any, to such Developments. The
      Executive acknowledges and agrees that any invention, concept, design or
      discovery that concretely relates to or is associated with the Executive’s work
      for the Company Group that is described in a patent application or is disclosed
      to a third party directly or indirectly by the Executive during the Restricted
      Period shall be the property of and owned by the Company, and such disclosure
      by
      patent application (except by way of a patent application filed by any member
      of
      the Company Group) or otherwise shall constitute a breach of Section 6
      above. 

     

    “Developments”
shall
      mean all data, discoveries, findings, reports, designs, inventions,
      improvements, methods, practices, techniques, developments, programs, concepts
      and ideas, whether or not patentable, relating to the present or planned
      activities, or the products and services of the Company Group.

     

    (b) If
      a
      patent application or copyright registration is filed by the Executive or on
      the
      Executive's behalf during the Executive's employment with the Company or within
      1 year after the Executive's leaving the Company's employ describing a
      Development within the scope of the Executive's work for the Company or which
      otherwise relates to a portion of the business of the Company of which the
      Executive had knowledge during the Executive's employment with the Company,
      it
      is to be conclusively presumed that the Development was conceived by the
      Executive during the period of such employment.

     

    9. Certain
      Remedies.

     

    (a) Forfeiture/Payment
      Obligations.
      In the
      event the Executive fails to comply with Sections 5 through 8, other than any
      isolated, insubstantial and inadvertent failure that is not in bad faith, the
      Executive agrees that he will: 

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (i) forfeit
      any amounts not already paid and repay to the Company any amounts already paid
      pursuant to Section 4(b) or 4(c) of the Agreement;

     

    (ii) forfeit
      all options, restricted stock and other equity based compensation awarded by
      the
      Company Group that have not vested or been exercised (in the case of options
      or
      awards with features similar to exercise) at the date of a determination by
      the
      Company that the Executive failed to comply with Sections 5 through 8 of the
      Agreement; and 

     

    (iii) pay
      to
      the Company Group the amount of all gain that the Executive realized within
      the
      12 months before the date of a determination by the Company that the
      Executive failed to comply with Sections 5 through 8 from the exercise or
      vesting of any stock options, restricted stock or other equity based
      compensation awarded by the Company Group. 

     

    (b) Time
      for Payment.
      The
      Executive will pay to the Company amounts due under Section 9(a) within 10
      days
      of a determination by the Company that the Executive failed to comply with
      Sections 5 through 8 of the Agreement. The obligations under Section 9(a) are
      full recourse obligations. 

     

    (c) Injunctive
      Relief.
      Without
      intending to limit the remedies available to the Company Group, including,
      but
      not limited to, those set forth in this Section 9, the Executive agrees
      that a breach of any of the covenants contained in Sections 5 through 8 of
      this
      Agreement may result in material and irreparable injury to the Company Group
      for
      which there is no adequate remedy at law, that it will not be possible to
      measure damages for such injuries precisely and that, in the event of such
      a
      breach or threat thereof, any member of the Company Group shall be entitled
      to
      seek a temporary restraining order or a preliminary or permanent injunction,
      or
      both, without bond or other security, restraining the Executive from engaging
      in
      activities prohibited by the covenants contained in Sections 5 through 8 of
      this
      Agreement or such other relief as may be required specifically to enforce any
      of
      the covenants contained in this Agreement. Such injunctive relief in any court
      shall be available to the Company Group in lieu of, or prior to or pending
      determination in, any arbitration proceeding.

     

    (d) Extension
      of Restricted Period.
      In
      addition to the remedies the Company may seek and obtain pursuant to this
      Section 9, the Restricted Period shall be extended by any and all periods
      during which the Executive shall be found by a court possessing personal
      jurisdiction over him to have been in violation of the covenants contained
      in
      Sections 5 through 8 of this Agreement.

     

    10. Defense
      of Claims. The Executive agrees that, during the Term and for a period of
      two years after termination of the Executive's employment, upon request from
      the
      Company, the Executive will cooperate with the Company in the defense of any
      claims or actions that may be made by or against the Company that affect the
      Executive's prior areas of responsibility, except if the Executive's reasonable
      interests are adverse to the Company in such claim or action. The Company agrees
      to promptly reimburse the Executive for all of the Executive's reasonable travel
      and other direct expenses incurred, or to be reasonably incurred, to comply
      with
      the Executive's obligations under this Section 10.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    11. Nondisparagement. The
      Executive agrees that at no time during his employment by the Company or
      thereafter shall he make, or cause or assist any other person to make, any
      statement or other communication to any third party which impugns or attacks,
      or
      is otherwise critical of, the reputation, business or character of any member
      of
      the Company Group or any of its respective directors, officers or employees.
      

     

    12. Periods
      Following the Term.
      For the
      avoidance of doubt, the provisions of Sections 5 through 11 shall continue
      in
      effect following the expiration of the Term, including, without limitation,
      during any period that the Executive remains an employee-at-will of the
      Company.

     

    13. Source
      of Payments. All
      payments provided under this Agreement, other than payments made pursuant to
      a
      plan which provides otherwise, shall be paid in cash from the general funds
      of
      the Company, and no special or separate fund shall be established, and no other
      segregation of assets shall be made, to assure payment. The Executive shall
      have
      no right, title or interest whatsoever in or to any investments which the
      Company may make to aid the Company in meeting its obligations hereunder. To
      the
      extent that any person acquires a right to receive payments from the Company
      hereunder, such right shall be no greater than the right of an unsecured
      creditor of the Company.

     

    14. Nonassignability;
      Binding Agreement.

     

    (a) By
      the
      Executive.
      This
      Agreement and any and all rights, duties, obligations or interests hereunder
      shall not be assignable or delegable by the Executive.

     

    (b) By
      the
      Company.
      This
      Agreement and all of the Company's rights and obligations hereunder shall not
      be
      assignable by the Company except as incident to a reorganization, merger,
      consolidation, or transfer of all or substantially all of the Company's
      assets.

     

    (c) Binding
      Effect.
      This
      Agreement shall be binding upon, and inure to the benefit of, the parties
      hereto, any successors to or assigns of the Company and the Executive's heirs
      and the personal representatives of the Executive's estate. 

     

    15. Withholding.
      Any payments made or benefits provided to the Executive under this Agreement
      shall be reduced by any applicable withholding taxes or other amounts required
      to be withheld by law or contract.

     

    16. Amendment;
      Waiver. This Agreement may not be modified, amended or waived in any manner,
      except by an instrument in writing signed by both parties hereto. The waiver
      by
      either party of compliance with any provision of this Agreement by the other
      party shall not operate or be construed as a waiver of any other provision
      of
      this Agreement, or of any subsequent breach by such party of a provision of
      this
      Agreement.

     

    17. Governing
      Law. All matters affecting this Agreement, including the validity thereof,
      are to be governed by, and interpreted and construed in accordance with, the
      laws of the State of New York applicable to contracts executed in and to be
      performed in that State.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    18. Entire
      Agreement; Supersedes Previous Agreements. This Agreement contains the
      entire agreement and understanding of the parties hereto with respect to the
      matters covered herein including, without limitation, the Existing Employment
      Agreement, and supersedes all prior or contemporaneous negotiations,
      commitments, agreements and writings with respect to the subject matter hereof,
      all such other negotiations, commitments, agreements and writings shall have
      no
      further force or effect, and the parties to any such other negotiations,
      commitments, agreements or writings shall have no further rights or obligations
      thereunder.

     

    19. Counterparts.
      This Agreement may be executed by either of the parties hereto in counterparts,
      each of which shall be deemed to be an original, but all such counterparts
      shall
      together constitute one and the same instrument.

     

    20. Headings.
      The headings of sections herein are included solely for convenience of reference
      and shall not control the meaning or interpretation of any of the provisions
      of
      this Agreement.

     

    21. Section
      409A Compliance.
      If any
      provision of this Agreement would, in the reasonable, good faith judgment of
      the
      Company, result or likely result in the imposition on the Executive or any
      other
      person of a penalty tax under Section 409A of the Code, the Company may
      reform this Agreement or any provision hereof, without the Executive’s consent,
      in the manner that the Company reasonably and in good faith determines to be
      necessary or advisable to avoid the imposition of such penalty tax (hereinafter
      “Section 409A
      Compliance”);
      provided,
      however,
      that
      any such reformation shall, to the maximum extent the Company reasonably and
      in
      good faith determines to be possible, retain the economic and tax benefits
      to
      the Executive hereunder while not materially increasing the cost to the Company
      of providing such benefits to the Executive. Except as provided for in the
      preceding sentence, the provisions of this Agreement may not be amended,
      supplemented, waived or changed orally, but only by a writing signed by the
      party as to whom enforcement of any such amendment, supplement, waiver or
      modification is sought and making specific reference to this
      Agreement.

     

    22. Notices.
      All notices or communications hereunder shall be in writing (including
      electronic transmission) and shall be (as elected by the person giving the
      notice) hand delivered by messenger or courier service, electronically
      transmitted, or mailed by registered or certified mail (postage prepaid), return
      receipt requested, addressed as follows:

     

    
      	
              To
                the Company:

              Integrated
                Alarm Services Group, Inc.

              99
                Pine Street, 3rd
                Floor

              Albany,
                NY 12207 

              Attention:
                Charles May CEO

              Phone:
                518-426-1515

              Fax:
                518-426-0953

               

              With
                a copy to:

              Shearman
                & Sterling LLP

              599
                Lexington Avenue

              New
                York, NY 10022

              Attention:
                Kenneth J. Laverriere

              Phone:
                212-848-8172 

              Fax:
                646-848-8172

            	
              To
                the Executive:

              Robert
                Heintz

              923
                Woodview Road

              Brielle,
                NJ 08730

              Phone:
                732-233-5412

              Fax:
                732-528-3903

            

    

     

    
      All
        such
        notices shall be conclusively deemed to be received and shall be effective
        (a) on the date delivered if by personal delivery; or (b) on the date
        of transmission with confirmed answer back if by electronic transmission;
        or (c)
        on the date the return receipt is signed or delivery is refused or the date
        the
        notice is designated by the postal authorities as not deliverable, as the
        case
        may be, if mailed.

    

    

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be signed by its
      officer pursuant to the authority of its Board, and the Executive has executed
      this Agreement, as of the day and year first written above.

     

    By:
      /s/
      Charles T. May   

    Name:
      Charles T. May

    Title:
      Chief Executive Officer

    

    

     

                                    THE
      EXECUTIVE

                        /s/
      Robert
      B. Heintz

                       
      Robert B. Heintz

     

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    RELEASE
      OF CLAIMS

    

    

    I,
      Robert
      Heintz, the undersigned, and Integrated Alarm Services Group, Inc. (the
      "Company")
      entered into an Employment Agreement, dated November 17, 2006, ("Agreement")
      and
      this Release of Claims is being delivered to the Company in consideration of
      amounts payable to me under the Agreement to which I am not otherwise entitled.
      

     

    

    I
      agree
      that this Release of Claims becomes effective seven (7) days after I sign it,
      unless, prior to the end of that 7-day period, I have revoked this Release
      of
      Claims in the manner described below. 

     

    1.
      General
      Release. In consideration of the promises of the Company set forth in the
      Agreement, which includes compensation to which I would not otherwise be
      entitled, I, on behalf of myself, and my heirs, executors, administrators,
      successors, assigns, dependents, descendants and attorneys hereby knowingly,
      voluntarily, and willingly fully and forever release, discharge, and covenant
      not to sue the Company and its direct and indirect parents, subsidiaries,
      affiliates, and related companies, past and present, as well as each of its
      and
      their directors, officers, employees, agents of the foregoing, representatives,
      advisers, trustees, insurers, assigns, successors, and agents, past and present
      (collectively, hereinafter referred to as the "Released Parties"), of, from,
      and
      with respect to any claim, duty, obligation, or cause of action relating to
      any
      matters of any kind, whether presently known or unknown, suspected or
      unsuspected, that any of them may possess arising from any omissions, acts,
      or
      facts that have occurred up until and including the date of this Release of
      Claims including:

     

    
      	·  	
              any
                and all claims relating to or arising from my employment relationship
                with
                the Company and the termination of either such relationship;
                

            

    

     

    
      	·  	
              any
                and all claims for wrongful discharge of employment; breach of contract,
                both express and implied; breach of a covenant of good faith and
                fair
                dealing, both express and implied; negligent or intentional infliction
                of
                emotional distress; negligent or intentional misrepresentation; negligent
                or intentional interference with contract or prospective economic
                advantage; and defamation;

            

    

     

    
      	·  	
              any
                and all claims arising under the Employee Retirement Income Security
                Act
                of 1974, the Civil Rights Acts of 1866 and 1867, Title VII of the
                Civil
                Rights Act of 1964, as amended, the Civil Rights and Women's Equity
                Act of
                1991, Sections 1981 through 1988 of Title 42 of the United States
                Code, as
                amended, the Occupational Safety and Health Act of 1970, the Consolidated
                Omnibus Budget Reconciliation Act of 1985, the Family and Medical
                Leave
                Act of 1993, the Worker Adjustment and Retraining Notification Act
                of
                1988, the Vocational Rehabilitation Act of 1973, the Equal Pay Act
                of
                1963, the Americans with Disabilities Act, the Fair Labor Standards
                Act,
                and the National Labor Relations Act, as amended, any other federal
                or
                state anti-discrimination law, or any local or municipal ordinance
                relating to discrimination in employment or human rights and the
                common
                law;

            

    

     

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

     

    
      	·  	
              any
                and all claims for salary, bonus, severance pay, pension, paid time
                off
                pay, life insurance, health or medical insurance, or any other fringe
                benefits, other than the payments and benefits provided for in the
                Agreement; 

            

    

     

    
      	·  	
              any
                and all claims arising out of any other laws and regulations relating
                to
                employment or employment discrimination; and

            

    

     

    
      	·  	
              any
                and all claims for attorneys' fees and
                costs.

            

    

     

    2.  ADEA
      Release.
      In
      consideration of the promises of the Company set forth in the Agreement, I
      hereby release and discharge the Released Parties from any and all claims that
      I
      may have against the Released Parties arising under the U.S. Age Discrimination
      in Employment Act of 1967, as amended, and the applicable rules and regulations
      promulgated thereunder ("ADEA").
      I
      understand that the ADEA is a federal statute that prohibits discrimination
      on
      the basis of age in employment, benefits, and benefit plans. I also understand
      that, by signing this Release of Claims, I am waiving all claims against any
      and
      all of the Released Parties. 

     

    3. Representations
      by Me.
      By
      signing this Release of Claims, I confirm the following:

     

    
      	·  	
              I
                am providing the release and discharge set forth in this Release
                of Claims
                in exchange for consideration in addition to anything of value to
                which I
                am already entitled.

            

    

     

    
      	·  	
              I
                was advised by the Company in writing to consult with an attorney
                of my
                choice prior to signing this Release of Claims and to have such attorney
                explain to me the terms of the Agreement and the Release of Claims
                including the terms relating to my release of claims arising under
                the
                ADEA.

            

    

     

    
      	·  	
              I
                have read the Agreement and this Release of Claims carefully and
                completely and understand each of
                them.

            

    

     

    
      	·  	
              I
                understand that I am not waiving any rights or claims provided under
                ADEA
                that may arise after I sign this Release of
                Claims.

            

    

     

    4.
      Period
      to Consider and Revocation. I understand that I have twenty-one days in
      which to consider the terms of the Agreement and this Release of Claims. To
      the
      extent I sign the Agreement and this Release of Claims within less than
      twenty-one (21) days after its delivery to me, I acknowledge that my decision
      to
      execute the Agreement and this Release of Claims prior to the expiration of
      such
      twenty-one (21)-day period was entirely voluntary. For a period of seven days
      following the date I execute this Release of Claims, I have 

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    the
      right
      to revoke the release contained in Section 2 (the "Revocation Period"). The
      Revocation Period shall expire at 5:00 p.m. New York City time on the last
      day
      of the Revocation Period; provided, however, that, if such seventh day is not
      a
      business day, the Revocation Period shall extend to 5:00 p.m. on the next
      succeeding business day. No such revocation by me shall be effective unless
      it
      is in writing and signed by me and received by the Company prior to the
      expiration of the Revocation Period.

     

    5.
       Rights
      Not Released.
      I
      understand that, notwithstanding any of the foregoing, by signing this Release
      of Claims, I shall not release the Company from any of the indemnity rights
      I
      may have against the Company under its By-Laws or under the laws of the State
      of
      Delaware, or from any of the rights I may have against the Company pursuant
      to
      the Agreement. 

     

    

     

     

    ________________________

    Robert
      B.
      Heintz

    

    DATE:
      ______________ 

     

    STATE
      OF:   )

    )
      ss:

    COUNTY
      OF   )

    

    On
      this
      ____ day of ________, 2006, before me personally came ___________________ to
      me
      known, and known to me to be the individual described in, and who executed
      the
      foregoing letter and duly acknowledged to me that he/she executed the
      same.

     

    __________________

    NOTARY
      PUBLIC

     

    
      
        
        

      

      
        A-3Ex-10.3

     

    
      

      

    

     

    EMPLOYMENT
      AGREEMENT

     

    AGREEMENT,
      dated as of November 22, 2006 (the "Effective
      Date"),
      by
      and between Integrated Alarm Services Group, Inc., a Delaware corporation (the
      "Company"),
      and
      Brian E. Shea, an individual residing at 862 Worcester Drive, Niskayuna, NY
      12309 (the "Executive").

     

    WHEREAS,
      the Company has determined that it is in the best interests of the Company
      and
      its shareholders to enter into an employment agreement with the Executive,
      and
      the Executive is willing to serve as an employee of the Company, subject to
      the
      terms and conditions of this Agreement; and

     

    WHEREAS,
      the Company and the Executive entered into an employment agreement, dated as
      of
      March 1, 2003 (the "Existing
      Employment Agreement");
      and

     

    WHEREAS,
      the Company and the Executive desire to provide for the continued employment
      of
      the Executive and to supersede the Existing Employment Agreement with this
      Agreement;

     

    NOW,
      THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     

    1. Employment
      and Duties.

     

    (a) General.
      The
      Executive shall serve as Executive Vice President of the Company, reporting
      to
      the Chief Operating Officer (the "COO")
      of the
      Company. The Executive shall have such duties and responsibilities, commensurate
      with the Executive's position, as may be assigned to the Executive from time
      to
      time by the Board of Directors (the "Board")
      or the
      COO of the Company. The Executive shall perform any and all duties related
      to
      his position with the Company and shall be available to confer and consult
      with
      and advise the officers and directors of the Company at such times as the
      Company may require. The Executive's principal place of employment shall be
      the
      principal offices of the Company currently located in Albany, New York,
provided,
      however,
      that
      the Executive understands and agrees that he will be required to travel from
      time to time for business reasons. 

     

    (b) Exclusive
      Services.
      For so
      long as the Executive is employed by the Company, the Executive shall devote
      his
      full-time working time to his duties hereunder, shall faithfully serve the
      Company, shall in all respects conform to and comply with the lawful and good
      faith directions and instructions given to him by the COO and shall use his
      best
      efforts to promote and serve the interests of the Company. Further, the
      Executive shall not, directly or indirectly, render services to any other person
      or organization without the consent of the Company or otherwise engage in
      activities that would interfere with the faithful performance of his duties
      hereunder. 

     

    2. Term
      of Employment. The
      Executive's employment under this Agreement shall commence as of the Effective
      Date and shall terminate on the earlier of (i) the first anniversary of the
      Effective Date and (ii) the termination of the Executive's employment under
      this Agreement; provided, however, that the term of the Executive's employment
      shall be automatically extended without further action of either party for
      additional one-year periods 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    unless
      written notice of either party's intention not to extend has been given to
      the
      other party at least 90 days prior to the expiration of the then effective
      Term.
      The period from the Effective Date until the termination of the Executive's
      employment under this Agreement is referred to as the "Term".

     

    3. Compensation
      and Other Benefits. Subject to the provisions of this Agreement, the Company
      shall pay and provide the following compensation and other benefits to the
      Executive during the Term as compensation for services rendered
      hereunder:

     

    (a) Base
      Salary.
      The
      Company shall pay to the Executive a salary (the "Base
      Salary")
      at the
      rate of $170,000 per annum, payable in substantially equal installments at
      such
      intervals as may be determined by the Company in accordance with its ordinary
      payroll practices as established from time to time. 

     

    (b) Bonus.
      In
      addition to the Base Salary, the Executive shall be eligible to earn for each
      calendar year ending during the Term an annual incentive bonus (the
“Bonus”)
      based
      on the achievement of one or more performance goals, targets, measurements
      and
      other factors (collectively, the “Performance
      Goals”)
      established for such year by the Compensation Committee of the Board (the
“Committee”).
      The
      Executive’s target annual bonus (the “Target
      Bonus”)
      and
      the applicable Performance Goals will be established by the Committee within
      90
      days of the first day of the year to which such Bonus relates. Payment of the
      Executive’s Bonus for any year will be based upon the achievement of the
      Performance Goals established by the Committee for that year (including, without
      limitation, the exercise of the Committee’s negative discretion under Section
      162(m) of the Internal Revenue Code of 1986, as amended (the “Code”)).
      The
      actual bonus paid may be higher or lower than the Target Bonus for over- or
      under-achievement of the Performance Goals (including, without limitation,
      the
      exercise of the Committee’s negative discretion under Section 162(m) of the
      Code), as determined by the Committee. Subject to Section 4 hereof, a
      Bonus, if any, shall be payable by March 15th
      of the
      succeeding calendar year or as soon thereafter as may be administratively
      practicable.

     

    (c) Savings
      and Retirement Plans.
      The
      Executive shall be entitled to participate in all savings and retirement plans
      applicable generally to other senior executives of the Company, in accordance
      with the terms of the plans, as may be amended from time to time. 

     

    (d) Welfare
      Benefit Plans.
      The
      Executive and/or his family shall be eligible to participate in and shall
      receive all benefits under the Company's welfare benefit plans and programs
      applicable generally to other senior executives of the Company, in accordance
      with the terms of the plans, as may be amended from time to time. The Company
      shall include the Executive in its health insurance program available to the
      Company's executive officers and shall pay 100% of the premiums for such
      program. At
      the
      Executive's election, the Executive may decline coverage under such health
      insurance program and receive from the Company an amount equal to 100% of the
      premium for such program, payable at such intervals as may be determined by
      the
      Company in accordance with its ordinary payroll practices. In the event that
      the
      Executive elects to decline coverage under such health insurance program as
      provided in this Section 3(d), the Company shall have no further obligation
      to
      provide coverage, pay premiums, or pay claims on behalf of the Executive under
      any health insurance arrangement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (e) Expenses.
      The
      Company shall reimburse the Executive for reasonable travel and other
      business-related expenses incurred by the Executive in the fulfillment of his
      duties hereunder upon presentation of written documentation thereof, in
      accordance with the applicable expense reimbursement policies and procedures
      of
      the Company as in effect from time to time.

     

    (f) Paid
      Time Off.
      The
      Executive shall be entitled to 22 vacation days and 4 sick/personal days
      each year during the Term, which shall be referred to together as "paid time
      off." The extent to which unused paid time off from one year shall be carried
      forward to any later year shall be governed by the Company's paid time off
      policy in effect from time to time. Upon separation of employment, for any
      reason, paid time off accrued and not used shall be paid in accordance with
      the
      Company's paid time off policy then in effect, and the determination of the
      amount of paid time off accrued and not used shall be made by the Company in
      its
      sole discretion pursuant to such policy.

     

    4. Termination
      of Employment.

     

    (a) Termination
      for Cause; Resignation.
      (i) If,
      prior to the expiration of the Term, the Company terminates the Executive's
      employment for Cause, as defined in Section 4(a)(ii) hereof, or if the
      Executive resigns from his employment hereunder, the Executive shall only be
      entitled to payment of unpaid Base Salary through and including the date of
      termination or resignation and any other amounts or benefits required to be
      paid
      or provided by law or under any plan, program, policy or practice of the Company
      ("Other
      Accrued Compensation and Benefits").
      The
      Company shall have no further obligation to compensate the Executive under
      any
      other provision of this Agreement or any other severance or salary continuation
      arrangement of the Company.

     

    (ii)Termination
      for "Cause"
      shall
      mean termination of the Executive's employment because of:

     

    (A) any
      act
      or omission that constitutes a material breach by the Executive of any of his
      obligations under this Agreement;

     

    (B) the
      willful and continued failure or refusal of the Executive to satisfactorily
      perform the duties reasonably required of him as an employee of the
      Company;

     

    (C) the
      Executive's conviction of, or plea of nolo
      contendere
      to,
      (1) any felony or (2) another crime involving dishonesty or moral
      turpitude or which could reflect negatively upon the Company or any of its
      subsidiaries or affiliates (the "Company
      Group")
      or otherwise impair or impede its operations;

     

    (D) the
      Executive's engaging in any misconduct, negligence, act of dishonesty, violence
      or threat of violence (including any violation of federal securities laws)
      that
      is injurious to the Company Group;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (E) the
      Executive's material breach of a written policy of the Company, the Company's
      Code of Ethics, or the rules of any governmental or regulatory body applicable
      to the Company; 

     

    (F) the
      Executive's refusal to follow the lawful and good faith directions of the Board;
      

     

    (G) the
      Executive's engaging in conduct that constitutes activity in competition with
      the Company Group; or

     

    (I) any
      other
      willful misconduct by the Executive which is materially injurious to the
      financial condition, business, or reputation of the Company Group.

     

    (b) Termination
      without Cause.
      (i) If,
      prior to the expiration of the Term, the Executive's employment is terminated
      by
      the Company without Cause, the Company (A) shall pay the Other Accrued
      Compensation and Benefits, if any, and (B) shall continue to pay the Executive
      the Base Salary at the rate in effect on the date the Executive's employment
      is
      terminated, for the period remaining in the Term on the date prior to the date
      the Executive's employment is terminated, in accordance with the Company's
      ordinary payroll practices. The Company shall have no further obligation to
      compensate the Executive under Section 4(c) or any other provision of this
      Agreement or any other severance or salary continuation arrangement of the
      Company.

     

    (ii)The
      Company shall not be required to make the payments and provide the benefits
      provided for under Section 4(b)(i) unless the Executive executes and
      delivers to the Company a release substantially in the form attached as
      Exhibit A and the release has become effective and irrevocable in its
      entirety.

     

    (iii)If,
      following a termination of employment without Cause, the Executive breaches
      the
      provisions of Sections 5 through 8 hereof, the Executive shall not be
      eligible, as of the date of such breach, for the payments described in
      Section 4(b)(i), and any and all obligations and agreements of the Company
      with respect to such payments shall thereupon cease.

     

    (c) Termination
      upon Change in Control.

     

    (i) Upon
      a
      Change in Control during the Term, the Term shall automatically be extended
      for
      1 year following the Change in Control. 

     

    (ii) In
      the
      event of the Executive's Involuntary Termination within 12 months after a Change
      in Control, provided such Change in Control occurs during the Term, (A) the
      Executive shall be eligible to receive a lump sum payment within 30 days of
      such
      termination equal to one times his Base Salary at the rate in effect immediately
      prior to such termination and (B) all stock options and warrants granted by
      the
      Company to the Executive under any plan prior to such termination shall vest,
      accelerate, and become immediately exercisable. The Company shall have no
      further obligation to compensate the Executive under Section 4(b)(i) or any
      other provision of this Agreement or any other severance or salary continuation
      arrangement of the Company. The Company shall not be required to make the
      payments and provide the benefits provided for under this Section 4(c)(ii)
      unless the Executive executes and delivers to the 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Company
      a
      release substantially in the form attached as Exhibit A and the release has
      become effective and irrevocable in its entirety.

     

    (iii) "Involuntary
      Termination"
      shall
      mean termination of the Executive's employment by the Company and its
      subsidiaries other than for Cause. The Executive shall be deemed to have
      incurred an Involuntary Termination if: (A) there is a Change in Control during
      the Term; and (B) within 12 months after such Change in Control, (1) the
      location of his principal place of employment is moved to a location that is
      more than 50 miles from the location of his principal place of employment
      immediately prior to such Change in Control, or (2) the Executive's Base Salary
      as in effect immediately prior to such Change in Control is reduced by more
      than
      10%; and (C) he thereafter resigns from employment within 30 days of such change
      of location of principal place of employment or such reduction in Base Salary.
      Except as provided in this Section 4(c), resignation from employment for any
      reason shall not be considered an Involuntary Termination. 

     

    (iv) A
      "Change
      in Control"
      shall
      occur if:

     

    (A) any
      "person" within the meaning of Section 14(d) of the Securities Exchange Act
      of
      1934, as amended, and any successor provisions thereto is or becomes the
      "beneficial owner" (as defined in Rule 13d-3 of the General Rules and
      Regulations under the Exchange Act), directly or indirectly, of securities
      of
      the Company representing 30% or more of the combined voting power of the
      Company's then outstanding securities entitled to vote in the election of
      directors of the Company;

     

    (B) during
      any twelve-month period (not including any period prior to the consummation
      of a
      Change in Control), individuals who at the beginning of such period constituted
      the Board and any new directors, whose election by the Board or nomination
      for
      election by the Company's stockholders was approved by a vote of at least
      one-half of the directors then still in office who either were directors at
      the
      beginning of the period or whose election or nomination for election was
      previously so approved, cease for any reason to constitute a majority thereof;
      

     

    (C) there
      occurs a reorganization, merger, consolidation or other corporate transaction
      involving the Company (a "Transaction"),
      in
      each case with respect to which the stockholders of the Company immediately
      prior to such Transaction do not, immediately after the Transaction, own more
      than 50% of the combined voting power of the Company or another corporation
      resulting from such Transaction, in substantially the same proportion of
      ownership as prior to such Transaction; or

     

    (D) all
      or
      substantially all of the assets of the Company are sold, liquidated or
      distributed.

     

    (d) Termination
      Due to Death or Disability.
      The
      Executive's employment with the Company shall terminate automatically on the
      Executive's death. In the event of the Executive's disability, the Company
      shall
      be entitled to terminate his employment. In the event of termination of the
      Executive's employment by reason of Executive's death or disability, the Company
      shall pay to the Executive (or his estate, as applicable) the Executive's Base
      Salary through
      and including the date of termination. For purposes of this Agreement,
      "disability"
      shall
      have the meaning set forth in the Company's long-term disability
      plan.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (e) Notice
      of Termination.
      Any
      termination of employment by the Company or the Executive shall be communicated
      by a written "Notice
      of Termination"
      to the
      other party hereto given in accordance with Section 22 of this Agreement.
      In the event of a termination by the Company for Cause, the Notice of
      Termination shall (i) indicate the specific termination provision in this
      Agreement relied upon, (ii) 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 and (iii) specify the date of
      termination, which date shall not be more than 30 days after the giving of
      such notice. The failure by the Company to set forth in the Notice of
      Termination any fact or circumstance which contributes to a showing of Cause
      shall not waive any right of the Company hereunder or preclude the Company
      from
      asserting such fact or circumstance in enforcing the Company's rights
      hereunder.

     

    (f) Resignation
      from Directorships and Officerships.
      The
      termination of the Executive's employment for any reason will constitute the
      Executive's resignation from (i) any director, officer or employee position
      the Executive has with the Company and (ii) all fiduciary positions
      (including as a trustee) the Executive holds with respect to any employee
      benefit plans or trusts established by the Company. The Executive agrees that
      this Agreement shall serve as written notice of resignation in this
      circumstance; provided,
      however,
      that
      the Executive shall execute such other documents as may be required by the
      Company in connection with such resignation.

     

    5. Confidentiality.

     

    (a) Confidential
      Information.
      (i) The
      Executive agrees that he will not at any time, except with the prior written
      consent of the Company Group or, to the extent permitted pursuant to subsection
      5(a)(ii), as required by law, directly or indirectly, reveal to any person,
      entity or other organization (other than any member of the Company Group or
      its
      respective employees, officers, directors, shareholders or agents) or use for
      the Executive's own benefit any information deemed to be confidential by any
      member of the Company Group ("Confidential
      Information")
      relating to the assets, liabilities, employees, goodwill, business or affairs
      of
      any member of the Company Group, including, without limitation, any information
      concerning past, present or prospective customers, manufacturing processes,
      marketing data, or other confidential information used by, or useful to, any
      member of the Company Group and known to the Executive by reason of the
      Executive's employment by, shareholdings in or other association with any member
      of the Company Group; provided
      that
      such Confidential Information does not include any information which is
      available to the general public or is generally available within the relevant
      business or industry other than as a result of the Executive's action.
      Confidential Information may be in any medium or form, including, without
      limitation, physical documents, computer files or disks, videotapes, audiotapes,
      and oral communications. 

     

    (ii)In
      the
      event that the Executive becomes legally compelled to disclose any Confidential
      Information, the Executive shall provide the Company with prompt written notice
      so that the Company may seek a protective order or other appropriate remedy.
      In
      the event that such protective order or other remedy is not obtained, the
      Executive shall furnish only that 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    portion
      of such Confidential Information or take only such action as is legally required
      by binding order and shall exercise his reasonable efforts to obtain reliable
      assurance that confidential treatment shall be accorded any such Confidential
      Information. The Company shall promptly pay (upon receipt of invoices and any
      other documentation as may be requested by the Company) all reasonable expenses
      and fees incurred by the Executive, including attorneys' fees, in connection
      with his compliance with the immediately preceding sentence.

     

    (b)Confidentiality
      of Agreement.
      The
      Executive agrees that, except as may be required by applicable law or legal
      process, during the Term and thereafter, he shall not disclose the terms of
      this
      Agreement to any person or entity other than the Executive's accountants,
      financial advisors, attorneys or spouse, provided
      that
      such accountants, financial advisors, attorneys and spouse agree not to disclose
      the terms of this Agreement to any other person or entity.

     

    (c)Exclusive
      Property.
      The
      Executive confirms that all Confidential Information is and shall remain the
      exclusive property of the Company Group. All business records, papers and
      documents kept or made by the Executive relating to the business of the Company
      Group shall be and remain the property of the Company Group. Upon the request
      and at the expense of the Company Group, the Executive shall promptly make
      all
      disclosures, execute all instruments and papers and perform all acts reasonably
      necessary to vest and confirm in the Company Group, fully and completely, all
      rights created or contemplated by this Section 5.

     

    6. Noncompetition.
      The Executive agrees that, for a period commencing on the Effective Date and
      ending one year after termination of employment for any reason (the "Restricted
      Period"), the Executive shall not, without the prior written consent of the
      Company, directly or indirectly, and whether as principal, investor, employee,
      officer, director, manager, partner, consultant, agent or otherwise, alone
      or in
      association with any other person, firm, corporation or other business
      organization, carry on a Competing Business (as hereinafter defined) in any
      geographic area in which the Company Group has engaged in a Competing Business
      (including, without limitation, any area in which any customer of the Company
      Group may be located). For purposes of this Section 6, carrying on a
      "Competing Business" means to engage in the business of wholesale monitoring
      and
      related support services, financing solutions and products within the security
      alarm industry, and any other business engaged in by the Company within 12
      months after termination of employment; provided, however, that nothing herein
      shall limit the Executive's right to own not more than 1% of any of the debt
      or
      equity securities of any business organization that is then filing reports
      with
      the Securities and Exchange Commission pursuant to Section 13 or 15(d) of
      the Securities Exchange Act of 1934, as amended. In the event the Executive
      is
      employed at will by the Company Group for any period after the end of the Term,
      this Section 6 shall remain effective until the first anniversary of the date
      of
      the Executive's termination of employment. 

     

    7. Non-Solicitation.
      The Executive agrees that, during the Restricted Period, the Executive shall
      not, directly or indirectly, (a) interfere with or attempt to interfere
      with the relationship between any person who is, or was during the then most
      recent three-month period, an employee, officer, representative or agent of
      the
      Company Group and any member of the Company Group, or solicit, induce or attempt
      to solicit or induce any of them to leave the 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    employ
      of
      any member of the Company Group or violate the terms of their respective
      contracts, or any employment arrangements, with such entities or (b) induce
      or attempt to induce any customer, client, supplier, licensee or other business
      relation of any member of the Company Group to cease doing business with any
      member of the Company Group, or in any way interfere with the relationship
      between any member of the Company Group and any customer, client, supplier,
      licensee or other business relation of any member of the Company Group. As
      used
      herein, the term "indirectly" shall include, without limitation, the Executive's
      permitting the use of the Executive's name by any competitor of any member
      of
      the Company Group to induce or interfere with any employee or business
      relationship of any member of the Company Group.

     

    8. Assignment
      of Developments.

     

    (a) During
      the Executive’s employment, all Developments that are at any time made, reduced
      to practice, conceived or suggested by him, whether acting alone or in
      conjunction with others, shall be the sole and absolute property of the Company,
      free of any reserved or other rights of any kind on his part, and the Executive
      hereby irrevocably assigns, conveys and transfers any and all right, title
      and
      interest that he may have in such Developments to the Company Group. If such
      Developments were made, conceived or suggested by the Executive during or as
      a
      result of his employment relationship with the Company Group, the Executive
      shall promptly make full disclosure of any such Developments to the Company
      and,
      at the Company’s cost and expense, do all acts and things (including, among
      others, the execution and delivery under oath of patent and copyright
      applications and instruments of assignment) deemed by the Company to be
      necessary or desirable at any time in order to effect the full assignment to
      the
      Company of his right, title and interest, if any, to such Developments. The
      Executive acknowledges and agrees that any invention, concept, design or
      discovery that concretely relates to or is associated with the Executive’s work
      for the Company Group that is described in a patent application or is disclosed
      to a third party directly or indirectly by the Executive during the Restricted
      Period shall be the property of and owned by the Company, and such disclosure
      by
      patent application (except by way of a patent application filed by any member
      of
      the Company Group) or otherwise shall constitute a breach of Section 6
      above. 

     

    “Developments”
shall
      mean all data, discoveries, findings, reports, designs, inventions,
      improvements, methods, practices, techniques, developments, programs, concepts
      and ideas, whether or not patentable, relating to the present or planned
      activities, or the products and services of the Company Group.

     

    (b) If
      a
      patent application or copyright registration is filed by the Executive or on
      the
      Executive's behalf during the Executive's employment with the Company or within
      1 year after the Executive's leaving the Company's employ describing a
      Development within the scope of the Executive's work for the Company or which
      otherwise relates to a portion of the business of the Company of which the
      Executive had knowledge during the Executive's employment with the Company,
      it
      is to be conclusively presumed that the Development was conceived by the
      Executive during the period of such employment.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    9. Certain
      Remedies.

     

    (a) Forfeiture/Payment
      Obligations.
      In the
      event the Executive fails to comply with Sections 5 through 8, other than any
      isolated, insubstantial and inadvertent failure that is not in bad faith, the
      Executive agrees that he will: 

     

    (i) forfeit
      any amounts not already paid and repay to the Company any amounts already paid
      pursuant to Section 4(b) or 4(c) of the Agreement;

     

    (ii) forfeit
      all options, restricted stock and other equity based compensation awarded by
      the
      Company Group that have not vested or been exercised (in the case of options
      or
      awards with features similar to exercise) at the date of a determination by
      the
      Company that the Executive failed to comply with Sections 5 through 8 of the
      Agreement; and 

     

    (iii) pay
      to
      the Company Group the amount of all gain that the Executive realized within
      the
      12 months before the date of a determination by the Company that the
      Executive failed to comply with Sections 5 through 8 from the exercise or
      vesting of any stock options, restricted stock or other equity based
      compensation awarded by the Company Group. 

     

    (b) Time
      for Payment.
      The
      Executive will pay to the Company amounts due under Section 9(a) within 10
      days
      of a determination by the Company that the Executive failed to comply with
      Sections 5 through 8 of the Agreement. The obligations under Section 9(a) are
      full recourse obligations. 

     

    (c) Injunctive
      Relief.
      Without
      intending to limit the remedies available to the Company Group, including,
      but
      not limited to, those set forth in this Section 9, the Executive agrees
      that a breach of any of the covenants contained in Sections 5 through 8 of
      this
      Agreement may result in material and irreparable injury to the Company Group
      for
      which there is no adequate remedy at law, that it will not be possible to
      measure damages for such injuries precisely and that, in the event of such
      a
      breach or threat thereof, any member of the Company Group shall be entitled
      to
      seek a temporary restraining order or a preliminary or permanent injunction,
      or
      both, without bond or other security, restraining the Executive from engaging
      in
      activities prohibited by the covenants contained in Sections 5 through 8 of
      this
      Agreement or such other relief as may be required specifically to enforce any
      of
      the covenants contained in this Agreement. Such injunctive relief in any court
      shall be available to the Company Group in lieu of, or prior to or pending
      determination in, any arbitration proceeding.

     

    (d) Extension
      of Restricted Period.
      In
      addition to the remedies the Company may seek and obtain pursuant to this
      Section 9, the Restricted Period shall be extended by any and all periods
      during which the Executive shall be found by a court possessing personal
      jurisdiction over him to have been in violation of the covenants contained
      in
      Sections 5 through 8 of this Agreement.

     

    10. Defense
      of Claims. The Executive agrees that, during the Term and for a period of
      two years after termination of the Executive's employment, upon request from
      the
      Company, the Executive will cooperate with the Company in the defense of any
      claims or 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    actions
      that may be made by or against the Company that affect the Executive's prior
      areas of responsibility, except if the Executive's reasonable interests are
      adverse to the Company in such claim or action. The Company agrees to promptly
      reimburse the Executive for all of the Executive's reasonable travel and other
      direct expenses incurred, or to be reasonably incurred, to comply with the
      Executive's obligations under this Section 10.

     

    11. Nondisparagement. The
      Executive agrees that at no time during his employment by the Company or
      thereafter shall he make, or cause or assist any other person to make, any
      statement or other communication to any third party which impugns or attacks,
      or
      is otherwise critical of, the reputation, business or character of any member
      of
      the Company Group or any of its respective directors, officers or employees.
      

     

    12. Periods
      Following the Term.
      For the
      avoidance of doubt, the provisions of Sections 5 through 11 shall continue
      in
      effect following the expiration of the Term, including, without limitation,
      during any period that the Executive remains an employee-at-will of the
      Company.

     

    13. Source
      of Payments. All
      payments provided under this Agreement, other than payments made pursuant to
      a
      plan which provides otherwise, shall be paid in cash from the general funds
      of
      the Company, and no special or separate fund shall be established, and no other
      segregation of assets shall be made, to assure payment. The Executive shall
      have
      no right, title or interest whatsoever in or to any investments which the
      Company may make to aid the Company in meeting its obligations hereunder. To
      the
      extent that any person acquires a right to receive payments from the Company
      hereunder, such right shall be no greater than the right of an unsecured
      creditor of the Company.

     

    14. Nonassignability;
      Binding Agreement.

     

    (a) By
      the
      Executive.
      This
      Agreement and any and all rights, duties, obligations or interests hereunder
      shall not be assignable or delegable by the Executive.

     

    (b) By
      the
      Company.
      This
      Agreement and all of the Company's rights and obligations hereunder shall not
      be
      assignable by the Company except as incident to a reorganization, merger,
      consolidation, or transfer of all or substantially all of the Company's
      assets.

     

    (c) Binding
      Effect.
      This
      Agreement shall be binding upon, and inure to the benefit of, the parties
      hereto, any successors to or assigns of the Company and the Executive's heirs
      and the personal representatives of the Executive's estate. 

     

    15. Withholding.
      Any payments made or benefits provided to the Executive under this Agreement
      shall be reduced by any applicable withholding taxes or other amounts required
      to be withheld by law or contract.

     

    16. Amendment;
      Waiver. This Agreement may not be modified, amended or waived in any manner,
      except by an instrument in writing signed by both parties hereto. The waiver
      by
      either party of compliance with any provision of this Agreement by the other
      party 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    shall
      not
      operate or be construed as a waiver of any other provision of this Agreement,
      or
      of any subsequent breach by such party of a provision of this
      Agreement.

     

    17. Governing
      Law. All matters affecting this Agreement, including the validity thereof,
      are to be governed by, and interpreted and construed in accordance with, the
      laws of the State of New York applicable to contracts executed in and to be
      performed in that State.

     

    18. Entire
      Agreement; Supersedes Previous Agreements. This Agreement contains the
      entire agreement and understanding of the parties hereto with respect to the
      matters covered herein including, without limitation, the Existing Employment
      Agreement, and supersedes all prior or contemporaneous negotiations,
      commitments, agreements and writings with respect to the subject matter hereof,
      all such other negotiations, commitments, agreements and writings shall have
      no
      further force or effect, and the parties to any such other negotiations,
      commitments, agreements or writings shall have no further rights or obligations
      thereunder.

     

    19. Counterparts.
      This Agreement may be executed by either of the parties hereto in counterparts,
      each of which shall be deemed to be an original, but all such counterparts
      shall
      together constitute one and the same instrument.

     

    20. Headings.
      The headings of sections herein are included solely for convenience of reference
      and shall not control the meaning or interpretation of any of the provisions
      of
      this Agreement.

     

    21. Section
      409A Compliance.
      If any
      provision of this Agreement would, in the reasonable, good faith judgment of
      the
      Company, result or likely result in the imposition on the Executive or any
      other
      person of a penalty tax under Section 409A of the Code, the Company may
      reform this Agreement or any provision hereof, without the Executive’s consent,
      in the manner that the Company reasonably and in good faith determines to be
      necessary or advisable to avoid the imposition of such penalty tax (hereinafter
      “Section 409A
      Compliance”);
      provided,
      however,
      that
      any such reformation shall, to the maximum extent the Company reasonably and
      in
      good faith determines to be possible, retain the economic and tax benefits
      to
      the Executive hereunder while not materially increasing the cost to the Company
      of providing such benefits to the Executive. Except as provided for in the
      preceding sentence, the provisions of this Agreement may not be amended,
      supplemented, waived or changed orally, but only by a writing signed by the
      party as to whom enforcement of any such amendment, supplement, waiver or
      modification is sought and making specific reference to this
      Agreement.

     

    22. Notices.
      All notices or communications hereunder shall be in writing (including
      electronic transmission) and shall be (as elected by the person giving the
      notice) hand delivered by messenger or courier service, electronically
      transmitted, or mailed by registered or certified mail (postage prepaid), return
      receipt requested, addressed as follows:

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

     

    
      	
              To
                the Company:

              Integrated
                Alarm Services Group, Inc.

              99
                Pine Street, 3rd Floor

              Albany,
                NY 12207 

              Attention:
                Charles T. May

              Phone:
                518-426-1515

              Fax:
                518-426-0953

               

              With
                a copy to:

              Shearman
                & Sterling LLP

              599
                Lexington Avenue

              New
                York, NY 10022

              Attention:
                Kenneth J. Laverriere

              Phone:
                212-848-8172 

              Fax:
                646-848-8172

            	
              To
                the Executive:

              Brian
                E. Shea

              862
                Worcester Drive

              Niskayuna,
                NY 12309

              Phone:
                518-393-4012

            

    

    

    All
      such
      notices shall be conclusively deemed to be received and shall be effective
      (a) on the date delivered if by personal delivery; or (b) on the date
      of transmission with confirmed answer back if by electronic transmission; or
      (c)
      on the date the return receipt is signed or delivery is refused or the date
      the
      notice is designated by the postal authorities as not deliverable, as the case
      may be, if mailed.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be signed by its
      officer pursuant to the authority of its Board, and the Executive has executed
      this Agreement, as of the day and year first written above.

     

    By:
      /s/
      Charles T. May

    Name:
      Charles T. May

    Title: Chief
      Executive Officer

    

    

                                    THE
      EXECUTIVE

                                    /s/
      Brian E.
      Shea

       
                    Brian
      E. Shea

     

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    RELEASE
      OF CLAIMS

    

    

    I,
      Brian
      E. Shea, the undersigned, and Integrated Alarm Services Group, Inc. (the
      "Company")
      entered into an Employment Agreement, dated November 22, 2006, ("Agreement")
      and
      this Release of Claims is being delivered to the Company in consideration of
      amounts payable to me under the Agreement to which I am not otherwise entitled.
      

     

    

    I
      agree
      that this Release of Claims becomes effective seven (7) days after I sign it,
      unless, prior to the end of that 7-day period, I have revoked this Release
      of
      Claims in the manner described below. 

     

    1.
      General
      Release. In consideration of the promises of the Company set forth in the
      Agreement, which includes compensation to which I would not otherwise be
      entitled, I, on behalf of myself, and my heirs, executors, administrators,
      successors, assigns, dependents, descendants and attorneys hereby knowingly,
      voluntarily, and willingly fully and forever release, discharge, and covenant
      not to sue the Company and its direct and indirect parents, subsidiaries,
      affiliates, and related companies, past and present, as well as each of its
      and
      their directors, officers, employees, agents of the foregoing, representatives,
      advisers, trustees, insurers, assigns, successors, and agents, past and present
      (collectively, hereinafter referred to as the "Released Parties"), of, from,
      and
      with respect to any claim, duty, obligation, or cause of action relating to
      any
      matters of any kind, whether presently known or unknown, suspected or
      unsuspected, that any of them may possess arising from any omissions, acts,
      or
      facts that have occurred up until and including the date of this Release of
      Claims including:

     

    
      	·  	
              any
                and all claims relating to or arising from my employment relationship
                with
                the Company and the termination of either such relationship;
                

            

    

     

    
      	·  	
              any
                and all claims for wrongful discharge of employment; breach of contract,
                both express and implied; breach of a covenant of good faith and
                fair
                dealing, both express and implied; negligent or intentional infliction
                of
                emotional distress; negligent or intentional misrepresentation; negligent
                or intentional interference with contract or prospective economic
                advantage; and defamation;

            

    

     

    
      	·  	
              any
                and all claims arising under the Employee Retirement Income Security
                Act
                of 1974, the Civil Rights Acts of 1866 and 1867, Title VII of the
                Civil
                Rights Act of 1964, as amended, the Civil Rights and Women's Equity
                Act of
                1991, Sections 1981 through 1988 of Title 42 of the United States
                Code, as
                amended, the Occupational Safety and Health Act of 1970, the Consolidated
                Omnibus Budget Reconciliation Act of 1985, the Family and Medical
                Leave
                Act of 1993, the Worker Adjustment and Retraining Notification Act
                of
                1988, the Vocational Rehabilitation Act of 1973, the Equal Pay Act
                of
                1963, the Americans with Disabilities Act, the Fair Labor Standards
                Act,
                and the National Labor Relations Act, as amended, any other federal
                or
                state anti-discrimination law, or any local or municipal ordinance
                relating to discrimination in employment or human rights and the
                common
                law;

            

    

     

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

     

    
      	·  	
              any
                and all claims for salary, bonus, severance pay, pension, paid time
                off
                pay, life insurance, health or medical insurance, or any other fringe
                benefits, other than the payments and benefits provided for in the
                Agreement; 

            

    

     

    
      	·  	
              any
                and all claims arising out of any other laws and regulations relating
                to
                employment or employment discrimination; and

            

    

     

    
      	·  	
              any
                and all claims for attorneys' fees and
                costs.

            

    

     

    2.  ADEA
      Release.
      In
      consideration of the promises of the Company set forth in the Agreement, I
      hereby release and discharge the Released Parties from any and all claims that
      I
      may have against the Released Parties arising under the U.S. Age Discrimination
      in Employment Act of 1967, as amended, and the applicable rules and regulations
      promulgated thereunder ("ADEA").
      I
      understand that the ADEA is a federal statute that prohibits discrimination
      on
      the basis of age in employment, benefits, and benefit plans. I also understand
      that, by signing this Release of Claims, I am waiving all claims against any
      and
      all of the Released Parties. 

     

    3. Representations
      by Me.
      By
      signing this Release of Claims, I confirm the following:

     

    
      	·  	
              I
                am providing the release and discharge set forth in this Release
                of Claims
                in exchange for consideration in addition to anything of value to
                which I
                am already entitled.

            

    

     

    
      	·  	
              I
                was advised by the Company in writing to consult with an attorney
                of my
                choice prior to signing this Release of Claims and to have such attorney
                explain to me the terms of the Agreement and the Release of Claims
                including the terms relating to my release of claims arising under
                the
                ADEA.

            

    

     

    
      	·  	
              I
                have read the Agreement and this Release of Claims carefully and
                completely and understand each of
                them.

            

    

     

    
      	·  	
              I
                understand that I am not waiving any rights or claims provided under
                ADEA
                that may arise after I sign this Release of
                Claims.

            

    

     

    4.Period
      to Consider and Revocation. I understand that I have twenty-one days in
      which to consider the terms of the Agreement and this Release of Claims. To
      the
      extent I sign the Agreement and this Release of Claims within less than
      twenty-one (21) days after its delivery to me, I acknowledge that my decision
      to
      execute the Agreement and this Release of Claims prior to the expiration of
      such
      twenty-one (21)-day period was entirely voluntary. For a period of seven days
      following the date I execute this Release of Claims, I have 

     

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    the
      right
      to revoke the release contained in Section 2 (the "Revocation Period"). The
      Revocation Period shall expire at 5:00 p.m. New York City time on the last
      day
      of the Revocation Period; provided, however, that, if such seventh day is not
      a
      business day, the Revocation Period shall extend to 5:00 p.m. on the next
      succeeding business day. No such revocation by me shall be effective unless
      it
      is in writing and signed by me and received by the Company prior to the
      expiration of the Revocation Period.

     

    5.
       Rights
      Not Released.
      I
      understand that, notwithstanding any of the foregoing, by signing this Release
      of Claims, I shall not release the Company from any of the indemnity rights
      I
      may have against the Company under its By-Laws or under the laws of the State
      of
      Delaware, or from any of the rights I may have against the Company pursuant
      to
      the Agreement. 

     

    

     

    

     

    ________________________

    Brian
      E.
      Shea

    

    DATE:
      ______________ 

     

    STATE
      OF:   )

    )
      ss:

    COUNTY
      OF   )

    

    On
      this
      ____ day of ________, 2006, before me personally came ___________________ to
      me
      known, and known to me to be the individual described in, and who executed
      the
      foregoing letter and duly acknowledged to me that he/she executed the
      same.

     

    __________________

    NOTARY
      PUBLIC

     

     

     

    
      
        
        

      

      
        A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]