see below for The Alarm Exchange
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Question
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Ken:
We constantly have corporate subscriber contracts and we lose some accounts because I put into the subscriber's contract “Incorporate and refer to Exhibit “X” “, Exhibit X being our company's agreement.
And then we have the problem where the Customers Lawyers put in that their contract supersedes all other contracts, agreements which leaves my agreement in the dirt. If we do not comply we lose the account about 50 % of the time!
Thanks
Gary Greenblott, Vice President
Alarmco, Inc.
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Response
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This is a common issue for alarm companies doing business with institutional subscribers. You really don't need to be a lawyer to understand that contract terms like the indemnity clause can be drafted in completely contradictory ways. You want the subscriber to indemnify you and the subscriber wants you to indemnify it.
You want to exculpate yourself from any liability under the contract and the subscriber wants you to be responsible for all losses. You want to limit that liability or exposure and your subscriber wants no limit or the equivalent of no limit. You want your subscriber to obtain insurance and name you; your subscriber wants you to obtain insurance and name it. There are other terms that often show up the conflict in terms. Your company is in New Jersey and you want any dispute handled there; your subscriber wants all disputes handled in Wisconsin. You want your counsel fees and your subscriber wants its counsel fees. You don't want deadlines with penalties and your subscriber wants you out of business if you don't get the job done when promised. You want a 5 or 10 year term on the monitoring and service contracts and your subscriber wants to be able to terminate at will.
You may train your salespeople to sell alarm systems, emphasize the need to push integrated systems and services, and think that your sales staff is ready to go. On the way out the training room door the sales staff is told, by the way, here are the contracts you need to get signed. Why is that?
Because you think your sales people are selling alarm services. I suppose they are, but I'd like to propose that what they are selling is your contract, the ones with RMR. So what they really need to be trained on is how to sell those contracts. How to conduct a sales transaction and walk out that door with the contract signed. And I am not talking about the door to door salesman. I am referring to the sales person who is meeting with the institutional subscriber's security director, or the general contractor's point man, even the corporate counsel who wants to talk about the contract terms. How can your sales person be expected to handle those confrontations and negotiations when you are most likely ill equipped to deal with them.
The answer is that you have to devote the same time, effort and attention to training the sales person to get that contract signed as you do getting them to understand how the alarm equipment and services provide protection.
I am frequently called upon to deal with subscriber's counsel or security directors to negotiate contract terms. Some alarm clients are strict and get their contract signed or won't do the work, others are flexible in what risk they will accept, and still others will do the job accepting the subscriber's onerous and unfair terms. I have to adjust my negotiation mindset keeping in perspective my client's acceptable outcome. Almost all jobs are saved with that in mind. There are lots of ways to modify the alarm contract terms and still have the risks reasonably contained. That's my job. Yours is designing and installing alarm protection. Give me a call when you have to negotiate. Just ask yourself two questions before calling. First, is the subscriber amenable to discussing its contract terms, and second, if not, are you going to do the job anyway. If the answers are no and yes, respectively, there's no point calling me. But assuming the subscriber is willing to discuss the terms a reasonable accommodation can usually be reached.
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warning - get ready for compliance issues
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On another note when dealing with your institutional subscribers, this ominous warning was sent in by an alarm company owner who prefers to stay in the shadows.......
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comment
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Ken
Please alert all alarm companies. They need to get ready for Compliance Companies to be directly involved in your business and how you operate.
Be prepared for a whole new way of doing business. Recently we were informed that large management companies have ascertaining the services of Compliance Companies. What is that? It is a firm that checks and insures that all the vendors that this company is doing or will be doing business with have all the proper licenses and they are still valid, proper insurance and limits are what they are requiring for their customer as they believe are sufficient, do not have a history of problems when in dealing with others, there are no liens or bad credit history, they want to know who all the owners are and other personal information, if there were any criminal incidents, claims or losses, sexual or other discrimination issues or history and just about anything they can think of on you, your employees and business. All the information you provide is entered into a data base and fully confirmed and check out. They will confirm and maintain it and insure that you are current on your insurance requirements and nothing changes on behalf of their clients. It states on their Web site that they will also check with Government Watch lists too and W9 compliance.
The next steps in this process will be for these firms to track contract expiration dates to insure they provide you with the proper time it they determine your customer should not renew the agreement. Your agreements will be review and terms and conditions that they believe are detrimental to their customer will be deleted or you will be instructed to do so to remain working with that firm (Limitation of Liability, Subrogation, Indemnification, Exculpatory, No Warranties paragraphs etc.). All the ones that are important and you need. Pricing on all services and items you sell will be entered into a data base with other firms that provide the same services as you for comparison purposes and they advise your customer if they believe you are charging too much and suggest another company that can provide the same services for a lower price. They state that there is an advantage for you to be registered with them to even the playing field with regards to underinsured and unlicensed companies and to put everyone on the same field but that may not be the case. By you becoming compliant you will be listed in their list of acceptable vendors. Failure to meet any of their requirement will knock you out as a vendor for future purchases and if you currently have an agreement be prepared for the agreement not to be renewed when it expires of which they will track and notify you of so according to you agreement terms.
While many of you will just brush this and just ignore this and believe that you will not be affected by this you are wrong. I was told recently that an alarm company was required to provide ten million dollars insurance for a customer from one of these firms and does less than five thousand dollars a year business or they will no longer provide their services to their customer. That’s an extra expense of about eight thousand dollars plus a year without enough return to justify it.
Between these services and all the additional insurance cost and business needs as well as changes in new governmental requirement it is making it impossible for small business to exist anymore. You need one person full time just to deal with this stuff. An example of new changes and additional work is the NYS Sales Tax requirement coming up next year requiring the additional break down and reporting of credit card and debit card sales as a separate item on the report. Just one more thing to do that takes time. Computer have made our lives both easier and harder since now everything can be broken down and analyzed.
Has anyone else experienced this with a compliance company that is working for an owner or management company and if so what are your positive and negative experiences if any? It there a viable work around to this or will we all become victims?
Your truly,
B. Nonymous
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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. To see the most current postings go to https://www.kirschenbaumesq.com/article/the-alarm-exchange
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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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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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NJ Alarm Company (Bergen County), seeking a Central Station Operator for the 5pm – 12:00pm shift. Email resume and salary requirements to service@merchantsalarm.com . No phone calls please.
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California and Texas alarm company seeking Central Station Manager, Customer Service Manager, Operations Manager, Sprinkler Operations Manager, Service Manager, Project Manager, Service Technicians, Lenel Certified Technicians, Installers, Fire Testers, Reg 4 Fire Testers, Service Dispatchers, Central Station Dispatchers, and Sales Representatives in locations throughout California and Texas. email resume to bwatkins@ssdsystems.com
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Union, NJ alarm company looking for Service Technician, Installation Technician, and
Administrative Assistant. Send resume to humanresources@supremealarm.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 Listed 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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Security Response Center – alarm monitoring across Canada – ULC Listed
Beverley Champagne 888-346-6302 bchampagne@src.net http://src.net/
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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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Barry Epstein - Vertex Capital - representing Buyers and Sellers in Life Safety Industry. bepstein4@sbcglobal.net cell:972-740-2740
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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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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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Security Dealer Marketing - full-service marketing agency for security businesses David Morgan
888-572-4450 x100 dmorgan@securitydealermarketing.com www.securitydealermarketing.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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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