see below for The Alarm Exchange
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Question what's fair commission package
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Ken,
I recall seeing a thread on commissions for installations and service contract sales. But, I would like someone to elaborate on what a fair commission is for a non salaried commission only sales person selling inspections, testing and monitoring for a full scope service provider servicing fire alarm, fire sprinkler, fire pumps, back flow, hood suppression, emergency lights etc. Some consideration should be factored in on the package we intend on providing before throwing out percentages.
*Company Expense Account (for fuel and dining, vehicle must meet our standard)
*Laptop and Smart Phone*
We are considering a 10% commission on the gross contract amount for the 1st year and 2% for subsequent years if it is a multi year contract. If the contract is only written for one year it would be a one time commission paid. We are going against the grain of locking our customers into a contract without an exit clause. This is a 1099 employee and one of my questions is can we still 1099 this person if we provide the benefit package above?
I look forward to the responses. BTW, we are in CA.
anon
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Answer
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So you're offering 10% on the first year's gross and 2% thereafter. Your contracts are apparently for one year though you state that you allow the subscriber an "exit clause". I have no opinion whether that is a fair or customary commission. Anyone care to comment?
Whether this salesperson is an independent contractor, paid with 1099 reporting, or an employee with W2 withholding, depends on whether the person is duly independent or in fact working for you full time. The IRS has a factor list to help determine. If the person is really an employee you run a risk if you don't treat the person as such. You could be held responsible for the withholding tax you didn't withhold and for workers compensation you didn't cover as well as disability benefits you didn't obtain for this employee.
Be sure your compensation package and all terms of the employment or engagement are in writing. You can use the Employment Contract as a base for an independent contractor, although you will need to make modifications. My office can assist you with that modification after you get the Employment Contract.
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Question Can you require existing employees to sign contract
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Ken,
In regards to the employment contract, does it matter when they sign it? I ask this because we have hires people about 8 months ago and they did not sign an employment contract, but I want them to sign one now. Does that make a difference?
Jeremiah Morales
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Answer
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All contracts require consideration by both parties. So the issue is whether you are providing any consideration on your end. Offering employment is clearly consideration, so requiring an Employment Contract at time of employment is sufficient consideration. Without researching the issue, I believe that some courts have struggled with whether continued employment is sufficient consideration. An employer can easily avoid that issue by offering some new term of employment in consideration of the Employment Agreement. Also, if the Employment Contract merely memorializes the existing terms of employment the Employment Contract will not be void for lack of consideration.
A few examples may better illustrate the issues.
Your service techs have been with you for years. You don't have a written Employment Contract and you don't have any employee handbook spelling out terms of employment. You present the employee with an Employment Contract that includes all of the existing working conditions such as salary, sick time, benefits, vacation, and you include confidentiality and restrictive covenant provisions. You require the contract to be signed for continued employment and the contract term is "at will" employment. I think, absent a specific state statute that deals with employment contracts, the contract should be enforceable.
The employee may decline to sign and may also claim that contract is not enforceable for lack of consideration.
Before you require existing employees to sign an Employment Contract it is a good idea to have your state law and cases checked to see how your state judges deal with the contracts. You can have that research performed economically by contacting my firm's licensing department, Jennifer Kirschenbaum,Esq., at 516 747 6700 ext 302.
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comment on leasing fire alarm systems
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Ken
In response to the in-depth comments in the October 1, 2012 article, regarding leased fire alarm systems:
It is not common practice (though it does exist) here in the State of California/San Francisco Bay Area whereas complete fire alarm systems (components and infrastructure) are leased to the property owners, though leasing of central station communication controls is a more common practice (by others). As our firm’s markets are primarily directed towards Common Interest Developments (HOA’s/multi-family developments), apartment complexes and commercial properties, we have occasionally come up against properties that have leased fire systems that were approved for contact/installation by the developer and then the burden of the agreement is handed over to the property owner (this alone is worth a separate legal discussion) after the developer moves on (in HOA’s, that would typically be after a super majority (66%) of the units (town homes, condominiums) have been purchased/occupied. The difficulty in this specific market as relates to full fire alarm systems/equipment leasing is the actual logistics of access to all leased equipment in the event the installing contractor is for some reason electing to enforce an ownership/removal clause within the contract. The issue lies in the fact the these properties are private property, with common areas managed by an Association Board of Directors but ‘living spaces’ separately and solely owned. Thus, we have a current situation whereas a ‘national firm’ is attempting to reclaim fire equipment that they state is owned by them per an initial installation/lease agreement with the developer. The difficulty lies in that the equipment is distributed throughout the common areas (thus governed by the Board) and in the residential units (audible devices) that thus, require individual owners (70) permission to access. As you can imagine, when and if this ongoing situation comes to some form of closure, the installing alarm company will likely spend more in legal and administrative costs than the eight years old equipment is ultimately worth... Also, this ‘national firm’ has over 70 individuals (not including the property management firm as the HOA’s agent) that have nothing but a negative impression of this firm and are not reticent to share (as I have been made aware).
In summary, is the 10 K in equipment worth (in this example) the potential far-ranging negative impact to this firm’s reputation? Well, at least in this case, they think so (or they haven’t thought it out). Hence to my ‘soap box’ – in the large scheme of things, I seriously question if leasing fire alarm (or even security) equipment for the purpose of customer retention really is as strategically successful (by all accounts) as many like to believe. The real bottom line is – be the best you can be, always attempt to ‘set the bar’ for your industry, customer base/service area, stay honest, stay ethical and monitor your competition for performance and pricing and you will have the customer retention you would wish without the appearance of strong arming and cornering your customers.
Just my ‘two-cents worth’...
Richard Schwank, Vice President, Operations - General Manager
Statcomm Inc.
Mountain View, CA
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking engagements:
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Electronic Security Association of Virginia, Annual Conference.and Trade Show. October 16, 2012 at Virginia Beach Resort Hotel and Conference Center. For more information contact Lynn Comer at lynn.comer@shenvalleysec.com; (800) 538-2322
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Want to schedule me, Jennifer or Dennis Stern for a speaking engagement? Alarm associations can book my presentation by calling Eileen in my office at 516 747 6700 x 312.
The Alarm Exchange
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This area is reserved for alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;
There is no charge to post a listing here. The listing is subject to review and approval and will be posted for approximately 10 days unless renewed. Include your contact information, phone, email and web site. Posting by category will depend on response to this forum. Send your post to Ken@KirschenbaumEsq.com.
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Help Wanted:
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Key West FL Alarm Company seeking experienced alarm technician. Send resume with references and salary requirements to scotts@barnesalarmsystems.com. No phone calls please.
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NYC alarm company looking for experienced alarm techs.and operators Call Dana 212 206 0900 or email to unitednyjobs@aol.com
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NYC central station looking for experienced general manager. Contact Ken Kirschenbaum at 516 747 6700 ext 301. All inquiries will be keep confidential.
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Long Island Central Station Alarm Company looking for experienced alarm technicians and central station operators. Excellent salary and benefits. E-Mail hr@lowittalarms.com or call 516-433-6960 ext. 215.
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Oakland, CA company looking for experienced electronic technician – alarms, CCTV, access control, intercoms, etc. Send resume and references to HR@reedbrothers.com or call Nancy at 800-400-5625 x158
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Bay Area, CA well established ADT Dealer is seeking a Technician Manager. Send email or resume to joshc@gaylordsecurity.com
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Long Island, NY based fire and security technology manufacturer is looking for:
1. experienced installation technicians who are interested in exploring a technical support role.
2. a Fire Product Marketing Manager to join their team in the company HQ in Amityville, NY
3. a Software Quality Assurance Tester
Send a current resume and salary requirements in confidence to rbaker@napcosecurity.com
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Indianapolis, IN - Hoosier Security call 317-644-0570 or send resume to: armando@hoosiersecurity.com Actively seeking installation contractors and sales personnel experienced in alarm and digital CCTV.
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Eastpointe Michigan alarm company has an opening for an experienced alarm tech/installer, great salary, benefits, truck, medical. Call Hank Luks 586-772-6100 or email to www.controllor@aol.com
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San Antonio Texas based company is looking for experienced residential, commercial and fire alarm salesmen as well as experienced alarm installers. Submit resume via e-mail to Gmunford@saalarms.com Glenn Munford, President. Phone 210 342-3100 www.sanantoniosecurityalarms.com
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Washington DC area Home Automation company seeking experienced alarm technicians. Send resume with references and salary requirements to jobs@american-automation.com
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Western Suffolk alarm company looking for exp'd office help- exp in Microsoft office, downloading of alarm panel, inventory, collections, sales and general office help. Send resume to Jeanne@checkmatesecurity.com
631 669-3303 www.Checkmate Security
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Northern New Jersey Fire Protection Company is looking for an experienced Fire Alarm Technician, with at least 3 years’ experience. Send resume to laura@cityfire.com
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Merger and Acquisitions
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NY - looking to purchase fire alarm subscriber accounts in New York metropolitan area. call Bob WIlliams at Briscoe Protective Systems Inc at 888 274 7263 ext 211 or email bobw@briscoeprotective.com All calls strictly confidential
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Southeast Arkansas. Security Integration co very lucrative agricultural vertical market, but having difficulty attracting and retaining installers to keep up with our workload. Primarily commercial/industrial integration but with approx. 240 monitored alarm accounts. Largely residential, upscale accounts with approx. 20% commercial accounts. Will consider either selling alarm accounts to focus on surveillance/access control or will consider selling all and work as regional sales manager for purchaser. Market has loads of potential. For confidentiality reasons, please contact me at my "other" email address hogshogshogs@att.net.
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Central Stations
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Nationwide Digital Monitoring - monitoring all of America UL Listed; NYC FD approved
800 221 0826 www.NationwideDigital.com Contact Alan Ankeles aankeles@NationwideDigital.com
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U.S.A. Central Station Alarm Corp - monitoring throughout the United States Bart Didden 877-872-1266
bdidden@usacentralstation.com www.usacentralstation.com
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United Certified Central Station Inc - monitoring the New York City metropolitan area. NYC Fire Dept approved and UL Listed. Dana Goffer 212 206 0900 x 301 http://www.weprotect.com/Monitoring%20station.html
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Counterforce Central Alarm Services Corp UL NYC FD approved contact Phil Blair 718 575 3333 Phil@counterforcecentral.com http://counterforcecentral.com/services/index.htm
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Metrodial Central Station - FDNY Approved and UL Listed. Contact Andy Lowitt at 866-900-METRO or andy@metrodial.com www.metrodial.com
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COPS Monitoring: Nationwide Burglary, Fire, PERS, Video, & Critical Environmental monitoring from 5 central stations copsmonitoring.com http://copsmonitoring.com/lp/kk.html or call Betty at 800-367-2677 x 1256
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All American Monitoring – throughout USA. UL, Five Diamond, licensed LisaF@AllAmericanMonitoring.com or call 800 318 9486 x 212 www.AllAmericanMonitoring.com
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RESPONSE CENTER USA – Monitoring burglar and fire alarms. PERS (Medical Alarms) Specialists UL Listed.
contact JD Benfer 866-489-4105 jdbenfer@rc-usa.com www.rc-usa.com
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United Central Control, Inc. - UL Listed, 5 Diamond Certified, serving the entire USA - contact Kathryn Schultz - 866-907-4712 or kschultz@teamucc.com http://www.teamucc.com/
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AvantGuard Monitoring Centers : UL 2050 Listed, 5 Diamond, Fully Redundant Central Stations Specialize in PERS monitoring. Contact Troy Iverson 877-206-9141 www.agmonitoring.com
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Electronix Systems Central Station Alarms Inc., UL Listed, FDNY Approved
and Five Diamond Rated. Contact Jacqueline Jones
jackiej@electronixsystems.com (631) 271-4000 www.electronixsystems.com
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SentryNet monitoring nationwide, Canada and Mexico - UL and 2050 listed; FM Certified. Contact Kurt Erdman kerdman@sentrynet.com 800-932-3304 www.sentrynet.com
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Grand Central Station – monitoring of burglary, fire and video verification services throughout the United States. UL Listed Benny M. Martinez 800-230-1654x136 bmartinez@gcsmonitoring.com www.gcsmonitoring.com
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Business Brokers / Consultants
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Ron Davis Davis Mergers and Acquisitions Group Inc rdavis@graybeardsrus.com Office 847 955 2345
Cell: 847 910 7716 www.graybeardsrus.com
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Mitch Reitman S.I.C. Consulting, Inc. Tax and Financial services 817-698-9999 MReitman@sicc.us www.sicc.us
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Rory Russell Acquisition & Funding Services www.afssmartfunding.com (800) 354-3863 Cell 518-366-5111
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Insurance brokers / insurance companies for alarm industry
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Alice Cornett Giacalone, Senior Vice President - selling alarm E&O throughout the United States
Central Insurance Agency, (800) 917-2542 aliceg@ciainsures.com www.ciainsures.com
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Ralph A.Costa - specializes in alarm insurance in New Jersey and other states 973 835 8444
ralph@burglaralarminsurance.com http://www.burglaralarminsurance.com/category.aspx?id=MISC1
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Security America Risk Retention Group Alarm industry owned and sponsored E&O insurance – Call SARRG at 1-866-315-3838, or info@securityamericarrg.com. www.securityamericarrg.com
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Premier Alarm Insurance, Kristin Sikorski, Isle of Palms SC 29451 1-800-792-1728
info@premieralarminsurance.com www.premieralarminsurance.com
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Rick Gombar Insurance Services, Inc. CA. Rick Gombar, President 800-446-6227
Rick@gombarinsurance.com www.gombarinsurance.com
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Eclipse Marketing & Insurance Services. Larry St John, CIC, Pres. 800-530-4448, LStJohn@eclipseinsurance.com - ins for alarm industry www.eclipseinsurance.com
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Financial Services
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Alarm Financial Services - funding for alarm dealers throughout the United States.
www.alarmfunding.com or call Jim Wooster 866-204-9350x12
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RMRFunding - Alarm account funding. www.rmrfunding.com Contact David Tropper (855) 767-1900 dtropper@rmrfunding.com
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Educational and Training Programs
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New York State alarm license Approved 81-HOUR License Course www.mbfaa.com
contact Alan Glasser (718) 894-6712 mbfaa.ny@gmail.com
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NYS 81 hour approved training - contact NYBFAA 814-838-3093 Info@NYBFA.org) www.NYBFA.org
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New Jersey Fire Alarm, Burglar Alarm & Locksmith training. Exam Prep Training Series, Practice Exam and approved CEU courses. see www.NJCEUcenter.com or call Bob Shoremount 908-637-8557
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Attrition Busters Presentations-Seminars-Workshops-Consulting www.attritionbusters.com
contact Bob Harris(818) 730-4690 bobh@attritionbusters.com
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Response Center USA Seminar on Video Verification – Learn how any alarm company can easily use video to have a Verified Alarm Dispatch to the PD. Wednesday October 10, 2012 10 am to 4 pm. at DoubleTree Hotel (by Hilton), 37 N.E. Loop 410 (by the Airport), San Antonio, Texas 78216. Free lunch buffet
FREE (seating limited and you must RSVP) to JD Benfer 866-489-4105 jdbenfer@rc-usa.com
Event organized by: Response Center USA monitoring station– We do more than just dispatch!
Presenters: President of Videofied -- Tyco Head of Visonic – CEO of CheckVideo -- NICB - Pres of Response Center USA Special Guests: National Insurance Crime Bureau and Law Enforcement – working to teach Law Enforcement about video verification
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Florida Alarm School. FASA and BASA classes. Mike Fletcher mfletcher@heeth.com 813 621 2333 www.floridaalarmschool.org. Upcoming classes Oct 24 - Pensacola - Renewal; Oct 25/26 - Pensacola - New Agent; Oct 29/30 - Tampa - New Agent; Nov 2 - Gainesville - Renewal; Nov 7 - Miami - Renewal; Nov 8/9 - Miami - New Agent
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Marketing for the Alarm - Security Industry
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Bob Maunsell - Security Marketing Guru - www.SecurityMarketingGuru.com 508-835-1123 support@securitymarketingguru.com
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Technical Support
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Fire Alarm System Engineering
Fire Alarm Design Services. Complete code consulting, basis for design reports, AutoCAD, submittal documents. PE and NICET IV on staff. NY, NJ, PA areas. Contact Joseph Hayes, SET 914-645-1289 or HayesCPP@optonline.net
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Systems Support Specialists - Technical consultants for Central Station Services & Installation Services, Custom Programming, End User Solutions, Product Evaluations, and Technical training - Contact Mark Fischer - mfischer@systemssupportspecialists.com or (631) 850-0084 www.systemssupportspecialists.com
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Miscellaneous
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Printers MonitoringContracts.com. Authorized printers for the Kirschenbaum Contracts TM. 866 322 4906 sales@MonitoringContracts.com www.monitoringcontracts.com
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alarm contracts - get them at www.alarmcontracts.com
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alarm company valuation - go to www.WhatsMyAlarmCompanyWorth.com
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Legal service for acquisition or sale of accounts. Contact Ken Kirschenbaum, Esq at 516 747 6700 ext 301, Jennifer Kirschenbaum,Esq at 516 747 6700 ext 302 or Dennis Stern, Esq at 516 747 6700 ext 323
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Many of you are forwarding these emails to friends or asking that others be added to the list.
Please tell your friends and employees to go to the Home Page on my web site and sign up for the emails. Thanks.
You can read articles and order alarm contracts on my web site www.alarmcontracts.com
Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden city Plaza
Garden City, NY 11530
516 747 6700 x 301
email: ken@kirschenbaumesq.com
phone: 516 747 6700
web: http://www.kirschenbaumesq.com