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Question:

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Dear Ken,

 I have enjoyed your news letters ever since the first one and look forward to every new email regarding our industry.

 One question that I have which I hope is on every ones mind and has never been asked before is:

 Say you have a family member working for you/with.  They are good at what they do and have proven this time after time.  But, after 5 years with a non-compete in place, its time for a new contract.  Problem is, they won’t sign a new contract with a non-compete and will inherit 40% ownership when a family member passes away. (which I hope won’t be for years) How do you protect the company assets without causing a family feud and who determines what that 40% equals.

Roy Y

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Answer:

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 All employees, including family members, should sign Employment Agreements. https://www.kirschenbaumesq.com/alarm2.htm

 Here is an article on Employment Contracts

http://www.kirschenbaumesq.com/earticle308.htm

 I don't know why the agreement your employee/family member signed expired, but the Employment Contract I offer doesn't expire.

 Here are two articles on valuing your alarm business.

http://www.kirschenbaumesq.com/earticle223.htm

 

http://www.kirschenbaumesq.com/earticle233.htm

 All business owners need to have an exist strategy in place.  Unless you are a one may operation you need an agreement with your partner, fellow shareholder or fellow LLC member.  Be mindful that almost all business related litigation is between family members and former best friends.  A contract negotiated while you're still friends and talking goes a long way to avoid conflict serious enough to disrupt your business later.

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Lead Paint

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Ken

    The lead paint issue is not an issue for alarm companies - From the NESA newsletter of December 4 2009.

    New EPA Regulations Unlikely to Affect Alarm Dealers

12-2-09- NESA - A trade association recently released a statement advising that “Newly proposed EPA regulations could affect alarm dealers” (see story). NESA research into the issue revealed that the new regulations which are aimed at painting, window, door and remodeling contractors offer an exclusion that will exempt most activities done during the alarm installation process.  Page 2 of the EPA Guide “The Small Entity Compliance Guide to Renovate Right EPA’s Lead-Based Paint Renovation, Repair, and Painting Program” details the activities that are excluded and not subject to the rule:

o   Housing built in 1978 or later.

o   Minor repair and maintenance activities that disturb 6 square feet or less of paint per room inside, or 20 square feet or less on the exterior of a home or building.

    For a government guide on the new rules visit http://www.epa.gov/lead/pubs/sbcomplianceguide.pdf

Brad Shipp,

NESA Executive Director

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Ken,

It does apply to "electricians".

It doesn't apply to area's PER ROOM of 6 square feet or less of disturbed painted surfaces.

Mike Sokoly

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Ken:

    Here is what I found on the EPA web site -

    The rule does not apply to minor maintenance or repair activities where less than six square feet of lead-based paint is disturbed in a room or where less then 20 square feet of lead-based paint is disturbed on the exterior. Window replacement is not minor maintenance or repair.

    I really don't see how this would affect your typical alarm contractor.....

 Dan

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Ken,

            I know it would be a matter of time before someone brought up the lead subject. I was part of the lead task force from ESA that reported what we learned to the different meetings in Dallas. This issue is long and complex and would take to long to explain every aspect of this FEDERAL LAW. So I will give the highlights and some pointers for your readers. But the key thing to remember is your state may have laws that are already in place and if they are more stringent than the feds the state will supercedes. So you will have to see what agency in your state is involved and read their rules also. For example NJ has 4 agency's that govern lead exposure and is more stringent than the federal law. But the feds can still impose fines for violations. And not being certified is a violation. Although some at the Dallas meetings blew this off something that will not happen. I am seeing more people in the last week trying to play catch up on this. There is a lot of reading up on this and it will make your head spin. We talked and argued with the EPA on this and they are set fast on this and will not compromise. And in fact it will include all commercial occupancies in the near future also. I hope this is a help and a starting place for you all. Good luck

G Duffy

NJBFAA

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    I'll post the law on my web site if there is enough interest - let me know

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Cyber issue continued

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Michael, you’re welcome.

    However, I must admit that I cannot read your last e-mail for it hurts my brain, eyes and skeletal structure in general. I think that I also got whiplash from my head falling to the side so much.

    Through your rambling you have perfectly defined why the industry in general should take this issue away from you and devote it to a committee who understands not only our transmission and connected technologies, but the data that we store in connection with the services we provide, which at that point we should invite the esteemed attorneys that you listed to establish the risks that will need to be mitigated, and levels of insurance to protect our assets, besides adopting Standards to also answer how we move forward.

    Finally, I am concerned about the distribution list of these e-mails. You have included representatives from companies that have such internal conflicts between the insurance programs you sell and the subrogation departments that look to dismantle the very contract provisions that make insurance affordable for our industry and our services affordable for society.

    Please stop, sit back and allow the leaders of our (my) industry do what they do best, protect my interests as an alarm service provider in a cooperative organized manner, rather than an insurance agent just trying to make a market and increase his/hers book of business.

Bart A. Didden

President

U.S.A. Central Station Alarm Corp.