Document:

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                                                                    Exhibit 10-3
                            RGS ENERGY GROUP, INC.
                    ROCHESTER GAS AND ELECTRIC CORPORATION

                               February 21, 2001

Mr. Michael T. Tomaino
Rochester Gas and Electric Corporation
89 East Avenue
Rochester, NY  14649

Dear Mike:

          Reference is made to the Severance Agreement made effective as of
April 26, 2000 (the "Current Severance Agreement"), by and among you, RGS Energy
Group, Inc. (the "Company") and Rochester Gas and Electric Corporation (the
"Subsidiary"). Capitalized terms not otherwise defined in this letter have the
same meanings as in the Severance Agreement. This letter is intended to clarify
certain aspects and provisions of the Current Severance Agreement, and, when
executed by you, shall constitute an amendment to such agreement.

          1.   [Prior Severance Agreement Superseded. You hereby agree that the
               -------------------------------------
Current Severance Agreement superseded that certain Severance Agreement, made
effective as of January 18, 1999, by and between you and the Subsidiary.

          2.   ]Definition of "Annual Salary" Clarified. Paragraph 4(a) of the
               ---------------------------------------
Current Severance Agreement is hereby amended by deleting the current text
thereof and replacing it with the following:

                    "Annual Salary" shall, as determined on the Termination
                    Date, be equal to the sum of:

                         (i)  the greater of (A) the highest base
                              salary paid or payable to the Employee
                              with respect to any twelve (12)
                              consecutive month period, as selected
                              by the Employee, during the three
                              years ending with the Termination Date
                              and (B) the Employee's base salary as
                              in effect on the Termination Date
                              (without regard to any reduction
                              giving rise to a Change in Duties
                              hereunder); and
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                  (ii)   the greater of (A) the Executive
                         Incentive Plan ("EIP")bonus for the
                         Employee's final year of employment
                         and (B) the average of the EIP bonuses
                         for the three years prior to the
                         Termination Date.

     3.   Additional Benefits Upon an Involuntary Termination. The following
          ---------------------------------------------------
language shall be inserted at the beginning of paragraph 6 of the Current
Severance Agreement prior to subparagraph (a) thereof:

                    In addition to the severance payment
               provided in paragraph 3 hereof, the Employee
               shall be entitled to the following benefits in
               the event of an Involuntary Termination of the
               Employee's employment by the Company or any
               subsidiary or successor of the Company occurring
               within three years after a Change of Control:

     4.   No Rights to Other Severance.  Paragraph 6(d) of the Current
          ----------------------------
Severance Agreement is hereby amended by inserting the following at the end
thereof:

               ; provided, however, that the Employee shall not
                 --------  -------
               be entitled to any severance payments or
               benefits under any severance plan except as
               provided herein

     5.   Incentive Compensation.  Paragraph 6(e) of the Current Severance
          ----------------------
Agreement is hereby amended by (a) inserting the term "equity-based" before the
word "award" and "awards" where they appear in such paragraph, (b) inserting the
parenthetical "(whether granted before, on or following a Change of Control and
whether granted by RGS or a successor, parent or other affiliate of RGS)" after
the words "previously made" in such paragraph, and (c) inserting the following
additional sentence at the end thereof.

               The Employee shall be paid a pro rata bonus for
               the year of termination under the EIP or any
               other annual incentive bonus plan then
               applicable to the Employee, which pro rata bonus
               shall be determined following the close of the
               relevant fiscal year based on actual performance
               for such year and shall be paid at the same time
               as bonuses are generally paid to

                                       2
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               other executives of the Company; provided, that
                                                --------
               such pro rata bonus shall be reduced but not
               below zero, by the amount of any bonus under any
               such plan previously paid to the Employee with
               respect to the same year.

               Please execute both copies of this letter in the space provided
below and return one fully executed copy to Michael T. Tomaino by February 23,
2001.

                                        RGS ENERGY GROUP, INC.

                                        By: /s/ T. S. Richards
                                            --------------------------------
                                            Name:   Thomas S. Richards
                                            Title:  Chairman, President and
                                                    Chief Executive Officer

                                        ROCHESTER GAS AND ELECTRIC CORPORATION

                                        By: /s/ David C. Heiligman
                                            --------------------------------
                                            Name:   David C. Heiligman
                                            Title:  Vice President and
                                                    Corporate Secretary

ACKNOWLEDGED AND AGREED:

/s/ M. T. Tomaino
------------------------
    Michael T. Tomaino

                                       3<PAGE>   1

                                                                     EXHIBIT 4.1

                             CERTIFICATE OF DECREASE

                                       OF

                    SERIES A $20 CONVERTIBLE PREFERRED STOCK

                                       OF

                       INTEGRATED SECURITY SYSTEMS, INC.

                       (Pursuant to Section 151(g) of the
                        Delaware General Corporation Law)

                  The undersigned hereby certifies that, by unanimous written
consent of the Board of Directors of Integrated Security Systems, Inc., a
Delaware corporation (the "Corporation"), effective as of March 13, 2001, the
Board of Directors of the Corporation adopted a resolution retiring 65,500
shares of a previously-established series of the preferred stock of the
Corporation, par value $0.01 per share, which series was designated "Series A
$20 Convertible Preferred Stock" pursuant to a Certificate of Designation filed
with the Delaware Secretary of State on April 2, 1996, and providing that the
shares so retired shall resume the status of authorized but unissued shares of
Preferred Stock, par value $0.01 per share, thereby decreasing the number of
shares of preferred stock of the Corporation that are designated as Series A $20
Convertible Preferred Stock from 75,000 to 9,500.

                  In witness whereof the Corporation has caused this Certificate
to be signed by its duly authorized officer this 14th day of March, 2001.

                                       INTEGRATED SECURITY SYSTEMS, INC.

                                       By:  /s/ C.A. RUNDELL, JR.
                                          -------------------------------------
                                            Name:  C.A. Rundell, Jr.
                                            Title:  Chief Executive Officer<PAGE>   1

                                                                     EXHIBIT 4.2

                           CERTIFICATE OF ELIMINATION

                                       OF

                    SERIES B $20 CONVERTIBLE PREFERRED STOCK

                                       OF

                        INTEGRATED SECURITY SYSTEMS, INC.

                       (Pursuant to Section 151(g) of the
                        Delaware General Corporation Law)

                  Integrated Security Systems, Inc., a corporation organized and
existing under the General Corporation Law of the State of Delaware (the
"Corporation") does hereby certify that the following resolutions respecting
Series B $20 Convertible Preferred Stock were duly adopted by the Corporation's
Board of Directors:

                           RESOLVED, that no shares of the Corporation's Series
                  B $20 Convertible Preferred Stock are outstanding and that no
                  shares of the Series B $20 Convertible Preferred Stock will be
                  issued subject to the certificate of designation previously
                  filed with respect to the Series B $20 Convertible Preferred
                  Stock; and

                           FURTHER RESOLVED, that the officers of the
                  Corporation are directed to file with the Secretary of State
                  of the State of Delaware a certificate pursuant to Section
                  151(g) of the General Corporation Law of the State of Delaware
                  setting forth these resolutions in order to eliminate from the
                  Corporation's certificate of incorporation all matters set
                  forth in the certificate of designation with respect to the
                  Series B $20 Convertible Preferred Stock.

                  In witness whereof, the Corporation has caused this
Certificate to be signed by its duly authorized officer this 14th day of March,
2001.
                             INTEGRATED SECURITY SYSTEMS, INC.

                             By:  /s/ C.A. RUNDELL, JR.
                                --------------------------------------------
                                  C.A. Rundell, Jr., Chief Executive Officer

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