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<SEC-DOCUMENT>0000897101-10-000448.txt : 20100430
<SEC-HEADER>0000897101-10-000448.hdr.sgml : 20100430
<ACCEPTANCE-DATETIME>20100305103032
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ACCESSION NUMBER:		0000897101-10-000448
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20100305

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INSIGNIA SYSTEMS INC/MN
		CENTRAL INDEX KEY:			0000875355
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS MANUFACTURING INDUSTRIES [3990]
		IRS NUMBER:				411656308
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		8799 BROOKLYN BLVD.
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55445
		BUSINESS PHONE:		7633926200

	MAIL ADDRESS:	
		STREET 1:		8799 BROOKLYN BLVD.
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55445
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">March 5, 2010</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Securities and Exchange Commission</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Mail Stop 4631</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Washington, D.C. 20549-4631</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.<BR>
Form 10-K for the fiscal year ended December 31, 2008<BR>
Amendment No. 1<BR>
Filed January 29, 2010<BR>
File #1-13471</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Dear Sir or Madam:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">This letter is in response to the comment letter dated February 22, 2010, relating to our Form 10-K for the year ended December 31, 2008, Amendment No. 1.&nbsp; This letter sets forth each comment followed by our response to the comment.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Item 9A &#150; Controls and Procedures, page 20</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Disclosure Controls and Procedures, page 20</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">We note your qualification in the second paragraph under Item 9A.&nbsp; Please indicate that your disclosure controls and procedures are designed to provide reasonable assurance of achieving their stated objectives and that your principal executive officer and principal financial officer concluded that your disclosure controls and procedures are effective at the reasonable assurance level.&nbsp; Alternatively, in future filings please remove language from your filings that qualify the design, operation, and effectiveness of your disclosure controls and procedures.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The second paragraph of Item 9A will be removed from future filings.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Page 2</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Item 11.&nbsp; Executive Compensation, page 22</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Executive Compensation, page 23</FONT></U></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Compensation Discussion and Analysis, page 23</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Overview and Philosophy, page 23</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">We note your response and revised disclosure in response to comment 10 of our letter dated December 22, 2009.&nbsp; In future filings please revise your disclosure on top of page 24 to clearly quantify what you consider to be compensation &#147;slightly below competitive norms.&#148;&nbsp; In addition, please disclose the 21 publicly-traded peer companies which compensation data you review and consider as part of your market analysis.&nbsp; Please show us what your revised disclosure will look like.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The fourth paragraph of Compensation Discussion and Analysis &#150; Overview and Philosophy, will be revised as follows in future filings:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The Compensation Committee Charter authorizes the Committee to retain outside consultants and advisors to assist the Committee.&nbsp; In February 2007, the Committee retained Towers Watson, a national executive compensation consulting firm, to conduct an executive compensation review focused on the following areas:&nbsp; executive competitive pay level testing, annual incentive plan design issues, and total potential dilution.&nbsp; Towers Watson delivered a report to the Committee in February 2007 that included its assessment based on Watson Wyatt&#146;s 2006-2007 Industry Report on Top Management Compensation, William Mercer&#146;s 2006 Executive Compensation Survey, and proxy data from the Company&#146;s 21 publicly-traded peer companies.&nbsp; The assessment found that the Company&#146;s total cash compensation for the eight executives reviewed was slightly below competitive norms when compared 
to the external market data, in that the executives&#146; total base salary was 14% below the market median and the executives&#146; total cash compensation was 7% below the market median.&nbsp; Based on its assessment, Towers Watson recommended that the Committee consider normal increases to base salary and adoption of an annual incentive compensation plan for all of the executive officers.&nbsp; The names of the peer companies used in the assessment are as follows:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">24/7 Real Media Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Alloy Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Arbitron Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Catalina Marketing Corp.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">CoActive Marketing Group Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Corillian Corp.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Digital River Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">EMAK Worldwide Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Harris Interactive Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Innotrac Corp.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Logility Inc.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">MDC Partners Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Multi-Color Corp.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Navarre Corp.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Paxar Corp.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Schawk Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">SPAR Group Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Traffix Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">United Online Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Valassis Communications Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">ValueClick Inc.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Future market analysis and assessment, when undertaken, may or may not be based upon the same 21 publicly-traded companies as determined by the Compensation Committee.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Following the above disclosure, future filings will then discuss the Compensation Committee&#146;s actions with respect to the most recent year.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Base Salary, page 24</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">We note your revised disclosure in response to comment 11 of our letter dated December 22, 2009.&nbsp; In future filings please disclose how the compensation committee evaluated each named executive officer&#146;s performance in deciding to increase their salaries.&nbsp; We note your disclosure that the suggested market increase of 3% to 6% was &#147;appropriate if justified by performance.&#148;&nbsp; Please show us what your revised disclosure will look like.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Set forth below is revised disclosure for 2008 in response to this comment.&nbsp; Future filings will follow this format, with changes to reflect information for the most recent year.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The original base salaries of the executive officers were set by their offer letters and are subject to upward or downward adjustment at the Compensation Committee&#146;s discretion.&nbsp; The Committee intends that base salaries be in the median range of salary levels for equivalent positions at comparable companies nationwide, in order for the Company to be able to attract and retain key individuals.&nbsp; The Committee does not use a set formula in determining base salaries; rather, it considers recommendations from the Company&#146;s CEO, together with its own assessment of each officer based on the following factors:&nbsp; job performance, responsibilities, experience, tenure with the Company, historical compensation levels within the executive officer group, leadership, and current and future contributions to the success of the Company.&nbsp; Officers do not necessarily receive increases every
 year.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">In its February 2007 report, Towers Watson stated that the base salaries of the Company&#146;s executive officers were slightly below the external median market data they reviewed, and that normal increases (3% to 6%), were appropriate if justified by performance.&nbsp; In 2008 the Committee viewed Towers Watson&#146;s 2007 report as continuing to be relevant, and did not retain Towers Watson or any other consultant to advise the Committee in setting base salaries for 2008.&nbsp; The Committee consulted with Towers Watson on a limited and informal basis regarding base salary adjustments in 2008.&nbsp; </FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">In addition to reviewing the Towers Watson report, the Compensation Committee met with the CEO and discussed with him his recommendation for salary adjustments for 2008 for the executive officers other than himself.&nbsp; The CEO recommended that each of the officers receive a $10,000 salary increase, other than Mr. Jones, who received a significant salary increase when he was appointed Senior Vice President in 2007.&nbsp; Although the Company&#146;s net sales had increased in 2007 over 2006, net income remained constant.&nbsp; The Company was also experiencing difficult challenges, including the potential loss of a key retailer, ongoing litigation with a large competitor, and the general economic downturn.&nbsp; The CEO felt that the recent performance of the Company did not warrant large salary increases, but he wanted to reward the officers for their strong efforts during the difficult period for
 the Company, and motivate them to remain with the Company and help it overcome the challenges it was then facing.&nbsp; The Committee agreed with the CEO&#146;s recommendations.&nbsp; It considered those recommendations together with the Towers Watson report, and its assessment of each of the officers based on the factors discussed above, and awarded a $10,000 increase in base salary for 2008 to each of the executive officers other than Mr. Jones, who received no increase.&nbsp; The $10,000 increases ranged from 3% to 7% of the prior year&#146;s salaries.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt 37.45pt; TEXT-INDENT: -37.45pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Annual Incentives, page 24</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Since your MD&amp;A discussion focuses on gross profit numbers (we note disclosure on page 18 of the annual report on form 10-K filed on March 30, 2009) and your financial statements do not appear to present gross margin figures, please tell us with a view toward future disclosure how you actually calculate Mr. Drill&#146;s percentage of bonus based on the gross margins on POPS revenue.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">In calculating the portion of Mr. Drill&#146;s bonus tied to POPS gross margin for 2008, the Company first determined the gross margin percentage earned on all of its POPS revenue.&nbsp; That percentage was then multiplied by the amount of POPS revenue between the dollar threshold ($24,000,000) and the dollar cap ($29,000,000).&nbsp; The resulting dollar amount was then multiplied by the bonus percentage.&nbsp; The calculation for 2008 of this part of the bonus was as follows:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
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<TABLE style="WIDTH: 60%; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>
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     <TD vAlign=bottom width="100%" colSpan=5>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">CALCULATION OF POPS GROSS MARGIN</FONT></B></P>
</TD></TR>
<TR>
     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">POPS revenue for 2008</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">28,930,860</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
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     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Less POPS costs of services for 2008</FONT></P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$</FONT></P>
</TD>
     <TD style="BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">(12,929,096)</FONT></P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">POPS gross profit</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8; BORDER-BOTTOM: windowtext 2pt double" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">16,001,764</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">POPS gross margin</FONT></P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">55.31%</FONT></P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
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     <TD vAlign=bottom width="100%" colSpan=5>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">CALCULATION OF MARGIN-BASED BONUS</FONT></B></P>
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     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">POPS revenue for 2008</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">28,930,860</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Less bonus threshold</FONT></P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">(26,500,000)</FONT></P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Revenue on which bonus is calculated</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">2,430,860</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
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     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">POPS gross margin percentage for 2008</FONT></P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">55.31%</FONT></P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Bonus gross margin</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">1,344,509</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Bonus percentage</FONT></P>
</TD>
     <TD vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">3.75%</FONT></P>
</TD>
     <TD vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
<TR>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="85%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Margin-based bonus</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="3%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8; BORDER-BOTTOM: windowtext 2pt double" vAlign=bottom width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">50,419</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=bottom width="1%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR></TABLE></DIV>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Long-term Incentives, page 25</FONT></U></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">5.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Your CD&amp;A provides minimal, if any, analysis as to how the ultimate level of the equity awards was determined.&nbsp; For each executive officer, in future filings please provide a substantive analysis and insight into why the compensation committee determined that the levels of equity compensation were appropriate in light of the factors considered in deriving those payouts.&nbsp; Please show us what your revised disclosure will look like.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Response</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Set forth below is revised disclosure for 2008 in response to this comment.&nbsp; Future filings will follow this format, with changes to reflect information for the most recent year.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Long-term Incentives</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The 1990 Stock Plan and the 2003 Incentive Stock Option Plan are the basis of the Company&#146;s long-term incentive plans for executive officers and other key employees.&nbsp; The stock option grants allow executives to purchase shares of Company stock at a price equal to the fair market value of the stock on the date of grant over a term of five to ten years.&nbsp; The options generally vest and become exercisable over a period of up to three years following the date of grant.&nbsp; The Committee granted options to the named executive officers on May 21, 2008 as shown in the Grants of Plan-Based Awards table.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The grant of stock options is consistent with the Company&#146;s objective to include a long-term equity interest in the total compensation package for the executive officers, giving them greater opportunity for reward if long-term performance is sustained.&nbsp; The objective of the stock option grants is to align executives&#146; long-term interests with those of the shareholders by creating a direct incentive for executives to increase shareholder value. In general, the Committee utilizes option grants as incentives for future performance and not as compensation for past accomplishments.&nbsp; The Committee does not use any set formula in granting options to executive officers.&nbsp; Prior to granting options to the executive officers, the Committee meets with the Company&#146;s Chief Executive Officer and receives his recommendations. The Committee typically considers the CEO&#146;s recommendati
ons together with its own assessment of each officer based on the same factors it uses in making salary adjustments: job performance, responsibilities, experience, tenure with the Company, historical compensation levels within the Company, leadership, and contributions to the success of the Company, particularly the future success of the Company.&nbsp; In connection with the option grant on May 21, 2008, the CEO recommended that each of the named executive officers receive an option grant for 20,000 shares.&nbsp; Although the Company&#146;s net sales had increased in 2007 over 2006, net income remained constant.&nbsp; The Company was also experiencing difficult challenges including the potential loss of a key retailer, ongoing litigation with a large competitor, and the general economic downturn.&nbsp; The CEO felt that the recent performance of the Company did not warrant large option grants to the executive officers, but he wanted to motivate them to remain with the Company and help it to overcome the chal
lenges it was then facing, and increase shareholder value.&nbsp; Accordingly, he recommended an option grant to each of the executive officers for 20,000 shares.&nbsp; The Committee agreed with the CEO&#146;s recommendation, and after considering it together with its assessment of the officers using the factors described above, awarded option grants for 20,000 shares to each of and the executive officers.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Page 6</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The Company also maintains the Employee Stock Purchase Plan, pursuant to which eligible employees can contribute up to ten percent of their base pay per year to purchase shares of Common Stock.&nbsp; The shares are issued by the Company at a price per share equal to 85% of market value on the first day of the offering period or the last day of the plan year, whichever is lower.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Summary Compensation Table, page 27</FONT></U></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">6.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">We note disclosure in the &#147;All Other Compensation&#148; column and your footnote (5) disclosure.&nbsp; Pursuant to Instruction 4 to item 402(c)(2)(ix) of Regulation S-K, if perquisites and personal benefits are required to be reported, then each perquisite or personal benefit that exceeds the greater of $25,000 or 10% of the total amount of perquisites and personal benefits for that officer must quantified and disclosed in a footnote.&nbsp; With respect to Mr. Jones, please advise or otherwise revise your future filings to comply with Instruction 4.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">RESPONSE</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Future filings will comply with Instruction 4 to Item 402(c)(2)(ix).&nbsp; Set forth below is the breakdown of the Column 5 information for Mr. Jones for 2008, 2007 and 2006:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<TABLE style="MARGIN-LEFT: 5%; WIDTH: 70%" cellSpacing=0 cellPadding=0 border=0>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><U><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif">Year</FONT></U></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif"></FONT></B>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><U><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif">Insurance Premiums</FONT></U></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif"></FONT></B>&nbsp;</P>
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     <TD vAlign=bottom width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><U><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif">Commissions</FONT></U></B></P>
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     <TD vAlign=bottom width="9%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif"></FONT></B>&nbsp;</P>
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     <TD vAlign=bottom width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif">Total All</FONT></B><B><U><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif"><BR>
Other Comp.</FONT></U></B></P>
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     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="10%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD></TR>
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     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">2008</FONT></P>
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     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$552</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$287,944</FONT></P>
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     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$288,496</FONT></P>
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     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">2007</FONT></P>
</TD>
     <TD vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">&nbsp;&nbsp;552</FONT></P>
</TD>
     <TD vAlign=top width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">&nbsp;&nbsp;212,521</FONT></P>
</TD>
     <TD vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">&nbsp;&nbsp;213,073</FONT></P>
</TD></TR>
<TR>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">2006</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">&nbsp;&nbsp;469</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="10%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">&nbsp;&nbsp;227,965</FONT></P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="9%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
</TD>
     <TD style="BACKGROUND: #d6f3e8" vAlign=top width="18%">
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">&nbsp;&nbsp;228,434</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Grants of Plan-Based Awards, page 28</FONT></U></P>
<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">7.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Your disclosure with respect to &#147;Estimated Future Payouts, Under Non-Equity Incentive Plan Awards&#148; is inconsistent with your Summary Compensation table disclosure, in particular, the &#147;Non-Equity Incentive Plan Compensation&#148; column where you disclose non-equity compensation paid pursuant to a plan.&nbsp; Please revise your future disclosure accordingly.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">RESPONSE</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The columns for Estimated Future Payouts, Under Non-Equity Incentive Plan Awards in the Grants of Plan-Based Awards table are marked &#147;N/A&#148;, because at the time the proxy materials were distributed, the Compensation Committee had not approved any executive incentive plans for 2009 due to the uncertain economy, and it was impossible to estimate the amounts of any future non-equity incentive plan awards.&nbsp; Future filings will make all required disclosures in this table.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Potential Change in Control Payments, page 28</FONT></U></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">8.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">In future filings please describe in greater detail the provisions of the agreements you have with each of the executive officers for payments upon a change of control.&nbsp; Explain what constitutes a &#147;change in control&#148; for purposes of these agreements, and explain the basis for selecting these events as triggering payment, including the rationale for providing a single trigger for payment.&nbsp; Please see Item 402(j) of Regulation S-K for additional guidance.&nbsp; Please show us what your revised disclosure will look like.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Future filings will include the following disclosure in response to this comment and Item 402(j), with appropriate updating:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Page 7</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 37.4pt; TEXT-INDENT: -37.4pt; TEXT-ALIGN: center" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">POTENTIAL CHANGE IN CONTROL PAYMENTS</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Messrs. Drill, Shireman, Simcox, Lucas and Jones have Change in Control Agreements with the Company which provide that, following a change in control of the Company, they will receive lump sum severance payments equal to two years&#146; salary (gross earnings for Mr. Jones) if they are terminated without cause, or if they voluntarily terminate for good reason.&nbsp; &#147;Change in control&#148; is defined in the agreement as a sale of all or substantially all of the assets of the Company, a merger in which the shareholders of the Company own less than 50% of the surviving entity, the acquisition of 40% or more of the Company&#146;s outstanding stock by a single person or a group, or the election of a majority of the Company&#146;s directors who consist of persons who were not nominated by the Company&#146;s prior Board of Directors.&nbsp; &#147;Good reason&#148; is defined in the agreement to inclu
de demotion, reduction in salary or benefits, relocation, and certain other events.&nbsp; In addition, Mr. Drill&#146;s agreement provides that he will receive his severance payment if he voluntarily terminates his employment for any reason following a hostile takeover of the Company.&nbsp; &#147;Hostile takeover&#148; is defined in the agreement as a Change in Control that is not authorized by the Board or is by a direct competitor of the Company.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The change in control agreements with our named executive officers contain a &#147;double trigger&#148; for payment benefits, which means that there must be both a change in control and a termination of employment in order for the executive officers to receive benefits.&nbsp; The Compensation Committee believes that a &#147;double trigger&#148; is better for the Company and its shareholders than a &#147;single trigger,&#148; in which the executive officers would be entitled to payments following a change in control, even if their employment was not terminated.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">If a Change in Control had occurred on December 31, 2008, the executive officers named in the Summary Compensation table would have received the lump sum payments set forth in the following table: </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><B><U><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif">Name</FONT></U></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><U><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif">Payment Amount</FONT></U></B></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 8pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Scott F. Drill</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$620,000</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Justin W. Shireman</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$350,000</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Scott J. Simcox</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$400,000</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">A. Thomas Lucas</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$333,000</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Alan M. Jones</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">$876,000</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Page 8</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Comment</FONT></B></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Item 13.&nbsp; Certain Relationships and Related Transactions and Director Independence, page 30</FONT></U></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">We note your response and revised disclosure in response to comment seven of our letter dated December 22, 2009.&nbsp; In accordance with Item 404(b) of Regulation S-K, in future filings please revise your disclosure to provide a description of your policies regarding the review and approval of transactions covered under Item 404(a) of Regulation S-K.&nbsp; Please show us what your revised disclosure will look like.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Future filings will include the following disclosure in response to this comment and Item 404(b):</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">The Company receives a Questionnaire from each director, nominee for director, executive officer, and greater than five percent shareholder which contains information about related-party transactions between them and the Company.&nbsp; The Audit Committee Charter assigns to the Audit Committee the responsibility to review and approve all related-party transactions.&nbsp; The Audit Committee reviews each related-party transaction to determine that it is fair and reasonable to the Company, and that the price and other terms included in the transaction are comparable to the terms that would be included in an arms-length transaction between the Company and an unrelated third party.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">The Company hereby acknowledges that:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face=Wingdings>&#159;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">the Company is responsible for the adequacy and accuracy of the disclosure in its filings;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face=Wingdings>&#159;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Please contact the undersigned with questions or comments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Very truly yours,</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="Times New Roman,serif">Insignia Systems, Inc.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">/s/ Justin W. Shireman</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt" face="Times New Roman,serif">Justin W. Shireman, CFO</FONT></P>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
