<SEC-DOCUMENT>0000897101-12-001660.txt : 20121002
<SEC-HEADER>0000897101-12-001660.hdr.sgml : 20121002
<ACCEPTANCE-DATETIME>20121002161522
ACCESSION NUMBER:		0000897101-12-001660
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20121001
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20121002
DATE AS OF CHANGE:		20121002

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INSIGNIA SYSTEMS INC/MN
		CENTRAL INDEX KEY:			0000875355
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-ADVERTISING [7310]
		IRS NUMBER:				411656308
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13471
		FILM NUMBER:		121123628

	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
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>insignia124135_8k.htm
<DESCRIPTION>FORM 8-K DATED OCTOBER 1, 2012
<TEXT>
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<P STYLE="font: bold 14pt Times New Roman,serif; margin: 0; text-align: center">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">Washington, DC 20549-1004</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: bold 20pt Times New Roman,serif; margin: 0; text-align: center">FORM 8-K</P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 12pt Times New Roman,serif; margin: 0; text-align: center">CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center">Date of Report (Date of earliest event reported):&nbsp;&nbsp;October
1, 2012</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 20pt Times New Roman,serif; margin: 0; text-align: center"><B></B></P>

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<P STYLE="font: 20pt Times New Roman,serif; margin: 0; text-align: center"><B>INSIGNIA SYSTEMS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">(Exact name of registrant as specified in its chapter)</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 34%; font-weight: bold; text-decoration: none; text-align: center">Minnesota</TD>
    <TD STYLE="width: 33%; font-weight: bold; text-decoration: none; text-align: center">1-13471</TD>
    <TD STYLE="width: 33%; font-weight: bold; text-decoration: none; text-align: center">41-1656308</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-decoration: none; text-align: center">(State or other jurisdiction<BR> of incorporation)</TD>
    <TD STYLE="font-size: 10pt; text-decoration: none; text-align: center">(Commission <BR> File Number)</TD>
    <TD STYLE="font-size: 10pt; text-decoration: none; text-align: center">(IRS Employer <BR> Identification No.)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-decoration: none; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-decoration: none; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-decoration: none; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font-weight: bold; text-decoration: none; text-align: center">8799 Brooklyn Blvd., Minneapolis, Minnesota</TD>
    <TD STYLE="font-weight: bold; text-decoration: none; text-align: center">55445</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">(Address of principal executive offices)</TD>
    <TD STYLE="font-size: 10pt; text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center">Registrant&rsquo;s telephone number, including area
code&nbsp;&nbsp;<B>(763) 392-6200</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 50%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%">
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        <P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: center">(Former name or former address, if changed since last
        report)</P></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0"></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0">Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

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    <TD STYLE="width: 3%; font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="width: 3%; font: 12pt Times New Roman,serif">&#9744;</TD>
    <TD STYLE="width: 94%; font: 12pt Times New Roman,serif">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif">&#9744;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif">&#9744;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 12pt Times New Roman,serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif">&#9744;</TD>
    <TD STYLE="font: 12pt Times New Roman,serif">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: justify"><B>Item 5.02.&nbsp;&nbsp;Departure of Directors or Certain
Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compensatory
Arrangement with Former Senior Vice President of CPG and Retail Sales</I></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">As previously disclosed in
its Current Report on Form 8-K filed on September 25, 2012, Insignia Systems, Inc. (the &ldquo;Company&rdquo;) announced that
Alan M. Jones, Senior Vice President of CPG and Retail Sales, would leave his employment effective September 30, 2012.
Further, the Company reported that the Company and Mr. Jones planned for him to assist with the transition of his duties and
to provide other consulting services related to sales and Company business after his departure.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with the
events disclosed in its September 25, 2012 Current Report, the Company and Mr. Jones entered into a Consulting Agreement and
Release of Claims (the &ldquo;Consulting Agreement&rdquo;) on October 1, 2012. Effective October 1, 2012, Mr. Jones will
provide consulting services, subject to the terms and conditions of the Consulting Agreement, for a period of nine (9) months
for a fee of approximately $20,000 per month. The Company will pay Mr. Jones&rsquo; COBRA premiums for medical, dental and
basic life insurance coverage for the nine-month period of the Consulting Agreement or until Mr. Jones is no longer eligible
for COBRA coverage, whichever is earlier. Mr. Jones may choose to receive three months of outplacement services of up to
$10,000 to be paid for by the Company and will receive an additional one-time payment of $4,500. In return, Mr. Jones granted
the Company a general release of past claims, if any, against the Company, including but not limited to any
discrimination, contractual or other employment-related claims. The foregoing description of the Consulting Agreement is
intended to be a summary only and is qualified in its entirety by reference to the Consulting Agreement, which is attached to
this Current Report as Exhibit 10.1 and incorporated by reference as if fully set forth herein.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: justify"><B>Item 9.01.&nbsp;&nbsp;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 13%; font: bold 10pt Times New Roman,serif; layout-grid-mode: line">Exhibit Number</TD>
    <TD STYLE="vertical-align: bottom; width: 87%; font: bold 10pt Times New Roman,serif; layout-grid-mode: line; text-align: center">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line">10.1</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line; text-align: justify">Consulting Agreement and Release of Claims between Insignia Systems, Inc. and Alan M. Jones effective October 1, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 76.5pt; text-align: justify; text-indent: -76.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>&nbsp;</B></P>

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<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman,serif; margin: 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

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    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Insignia Systems, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">(Registrant)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 58%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 3%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 39%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif">Date:&nbsp;&nbsp; October 2, 2012</TD>
    <TD STYLE="font-size: 10pt">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-size: 10pt">/s/ Glen P. Dall</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif">Glen P. Dall, President and Chief Operating Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 12pt Times New Roman,serif; margin: 0; text-align: center">EXHIBIT INDEX</P>

<P STYLE="font: bold 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 13%; font: bold 10pt Times New Roman,serif; layout-grid-mode: line">Exhibit Number</TD>
    <TD STYLE="vertical-align: bottom; width: 87%; font: bold 10pt Times New Roman,serif; layout-grid-mode: line; text-align: center">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line">10.1</TD>
    <TD STYLE="font: 10pt Times New Roman,serif; layout-grid-mode: line; text-align: justify">Consulting Agreement and Release of Claims between Insignia Systems, Inc. and Alan M. Jones effective October 1, 2012</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 135pt; text-align: justify; text-indent: -135pt">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>insignia124135_ex10-1.htm
<DESCRIPTION>CONSULTING AGREEMENT AND RELEASE OF CLAIMS
<TEXT>
<HTML>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: right"><B>EXHIBIT 10.1</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B><U>CONSULTING AGREEMENT AND RELEASE OF CLAIMS</U></B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">This Consulting Agreement and Release of Claims (&ldquo;Agreement&rdquo;)
is made by and between Insignia Systems, Inc. (&ldquo;ISI&rdquo;), 8799 Brooklyn Blvd., Minneapolis, MN 55445 and Alan M. Jones
(&ldquo;I,&rdquo; &ldquo;me,&rdquo; or &ldquo;my&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"><B>WHEREAS,</B> Company and I mutually agree that my
employment with ISI will terminate on the date specified herein; and</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"><B>WHEREAS,</B> Company and I do not anticipate that
there will be any disputes between us or legal claims arising out of my separation from employment, but nevertheless desire to
ensure a completely amicable parting and to settle fully and finally any and all differences or claims that might arise out of
my employment;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in"><B>THE PARTIES HEREBY AGREE,</B> in consideration of
the foregoing and the following terms, conditions and obligations, as follows:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U></B>. All words used in this Agreement are intended
to have their plain meanings in ordinary English. Specific terms in this Agreement have the following meanings:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;I,&rdquo; &ldquo;me,&rdquo; and &ldquo;my&rdquo; include
both me (Alan M. Jones) and anyone who has or obtains any legal rights or claims through me.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;ISI&rdquo; or &ldquo;Insignia&rdquo; means Insignia Systems,
Inc. and any related or affiliated business entities in the present or past, including without limitation, its or their predecessors,
successors, parents, subsidiaries, affiliates, joint venture partners, and divisions.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Company&rdquo; means ISI; the present and past Board of
Directors, shareholders, officers and employees of ISI; ISI&rsquo;s insurers; and anyone who acted on behalf of ISI or on instructions
from ISI.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Consulting Services&rdquo; means services to be rendered
by me to Company for a period of nine (9) months from September 30, 2012, as required for the orderly transition of my job duties
to Company&rsquo;s new sales leader, including but not limited to meetings and/or phone calls with prescribed Company personnel;
provision of additional Company, customer and other information to Company&rsquo;s CEO, President and COO, CFO, or their designees
as specified by them; or other reasonable services as requested by Company&rsquo;s CEO, President and COO, CFO or their designees
as specified by the them.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;My Claims&rdquo; means any and all claims, actions, rights,
causes of action and demands, known or unknown, arising at law, in equity, or otherwise, from the beginning of time and continuing
through and up to the date on which I sign this Agreement, which I have or may have against the Company, including without limitation:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims arising out of or relating to my employment
with ISI or the termination of that employment;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims arising out of or relating to the statements,
actions or omissions of the Company;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims for any actual or alleged unlawful discrimination,
harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local statute, ordinance,
or regulation, including without limitation claims under Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights
Act of 1866, the Civil Rights Act of 1991; all federal and state executive orders, including Executive Order 11246; the Age Discrimination
in Employment Act, as amended by the Older Workers Benefit Protection Act of 1990 and as otherwise amended; the Worker Adjustment
and Retraining Notification Act; the Equal Pay Act; the Genetic Information Nondiscrimination Act; the Minnesota Human Rights Act,
the Ohio Fair Employment Practices Act and any applicable local human rights ordinance(s);</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims for any actual or alleged violations of the
federal Americans with Disabilities Act of 1990 (42 U.S.C. &sect; 1981); the federal Rehabilitation Act of 1973; the federal Family
and Medical Leave Act; the federal Fair Labor Standards Act; the federal Employee Retirement Income Security Act (except for any
vested claim for benefits under a qualified retirement plan that may be brought pursuant to 502(a)(1)(B) of ERISA), including but
not limited to claims under ISI-sponsored severance and termination pay plans, if any; and state and local wage-hour, workers compensation
and leave of absence laws and regulations, if any;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims for actual or alleged wrongful discharge;
breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair dealing;
breach of fiduciary duty; estoppel; my activities, if any, as a &ldquo;whistleblower&rdquo;; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery;
false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment
practices; and violation of any other principle of common law;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims for compensation of any kind, including without
limitation, salary, wages, bonuses, commissions, stock-based compensation, vacation pay, paid time off, fringe benefits and expense
reimbursements;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims for reinstatement or other equitable relief;
back pay, front pay, compensatory damages, damages for alleged personal injury, liquidated damages and punitive damages; and</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0 0 0 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all claims for attorneys&rsquo; fees, costs and interest.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">However, My Claims does not include any claims that the law does not allow
to be waived or any claims that may arise after the date on which I sign this Agreement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination of Employment and Agreement to Release My Claims</U></B>.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;My employment with ISI terminated as of the close of business
on September 30, 2012, and I hereby acknowledge I have received or will receive payment of my gross base salary through September
30, 2012, less normal tax withholdings. Provided I perform all of my obligations under this Agreement and do not revoke this Agreement
within the fifteen-day Revocation Period set forth in Section VII below, I will receive &ldquo;Special Consideration&rdquo; from
ISI in the form of:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;nine monthly payments of $20,833 in return for the rendering
of the Consulting Services, to be paid monthly beginning October 30, 2012;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payment by Company of 100% of monthly COBRA premiums for health,
dental and basic life insurance coverage through June 30, 2013, or the date I am no longer eligible for COBRA coverage under the
Company&rsquo;s health, dental and basic life insurance plans, whichever is earlier;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;three months of outplacement services (which may begin any
time after execution and delivery of this Agreement and expiration of the Revocation Period set forth in Section VII herein) up
to $10,000 with a firm of my choosing but to be paid directly to the outplacement firm by ISI upon commencement of the services;
and</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a lump sum payment of $4,500 on September 30, 2012, less normal
tax withholdings.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;My Special Consideration is contingent upon me signing and not
revoking this Agreement as provided below. I understand and acknowledge that the Special Consideration is in addition to anything
of value that I would be entitled to receive from ISI if I did not sign this Agreement or if I revoked this Agreement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In exchange for the Special Consideration, I give up, settle and
release all of My Claims and I agree to abide by this Agreement in all respects. I understand and agree that through this release
I am extinguishing all of My Claims occurring up to the date on which I sign this Agreement. The Special Consideration that I am
receiving is a fair compromise for my undertakings in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, I understand that nothing contained
in this Agreement purports to limit any right I may have to file a charge with Equal Employment Opportunity Commission or other
administrative agency or to participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission
or other investigative agency. This Agreement does, however, waive and release any right to recover monetary damages resulting
from such investigation or litigation.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Admission of Liability</U></B>. Even though ISI will provide
Special Consideration for me to settle and release My Claims and to otherwise abide by this Agreement, the Company does not admit
that it is responsible or legally obligated to me. In fact, the Company denies that it is responsible or legally obligated to me
for My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it treated me unfairly or
acted wrongfully.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acknowledgment of Risk of Change in Facts or Law</U></B>. I
acknowledge that the facts and the law material to this Agreement may turn out to be different from or contrary to my present belief,
and I assume the risk that such differences may arise. I acknowledge and represent that I have not relied on any representations
of the Company or the Company&rsquo;s counsel in entering into this Agreement. Once the fifteen-day revocation period below has
expired, I intend that the release granted herein shall be final, complete, irrevocable and binding in all events and circumstances
whatsoever.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Advice to Consult with an Attorney</U></B>. I understand and
acknowledge that I am hereby being advised by the Company to consult with an attorney prior to signing this Agreement. My decision
whether to sign this Agreement is my own voluntary decision made with full knowledge that the Company has advised me to consult
with an attorney.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Period to Consider this Agreement</U></B>. I understand and
acknowledge that I have 21 days from the day that I receive this Agreement (not counting September 25, 2012, the day upon which
I received it), or through October 5, 2012, whichever is later, to consider whether I wish to sign this Agreement. I understand
ISI will accept this Agreement and pay to me the Special Consideration as described above if I sign and return this Agreement and
if I do not revoke this Agreement as provided below. I understand that if I sign this Agreement on or before October 16, 2012,
or choose to forego the advice of legal counsel, I do so freely and knowingly, and I waive any and all further claims that such
action or actions would affect the validity of this Agreement. I understand that any changes to this Agreement, whether material
or not material, do not restart the period of time I have to consider whether or not to sign this Agreement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">If I elect not to execute and return this Agreement on or before October
16, 2012, I further understand that the offer contained herein shall terminate and ISI shall be under no obligation to provide
the severance compensation and the benefits provided herein.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>My Right to Revoke this Agreement</U></B>. I understand that
I may revoke this Agreement at any time within fifteen (15) days after I sign it, not counting the day upon which I sign it (&ldquo;Revocation
Period&rdquo;). This Agreement will not become effective or enforceable unless and until the fifteen-day Revocation Period has
expired without my revoking it. I understand that if I rescind or revoke this Agreement, all of ISI&rsquo;s obligations to me under
this Agreement will immediately cease and terminate, and ISI will owe me no amounts hereunder. If I do not revoke or rescind this
Agreement within said fifteen-day period, I understand that the Company will pay the Special Consideration to me on my termination
date or when that fifteen-day period expires, whichever is later.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>VIII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Procedure for Accepting or Revoking this Agreement</U></B>.
To accept the terms of this Agreement, I must deliver the Agreement, after I have signed and dated it, to ISI by hand or by certified
mail, return receipt requested, on or before October 16, 2012. To revoke my acceptance, I must deliver a written, signed statement
that I revoke my acceptance to ISI by hand or by certified mail within the fifteen-day Revocation Period. All certified mailings
and hand deliveries must be made to ISI at the following address:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>Attn: Payroll and HR Administrator</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>Insignia Systems, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>8799 Brooklyn Blvd.</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>Minneapolis, MN 55445</B></P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">If I choose to deliver my acceptance or the revocation of my acceptance
by mail, it must be:</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;postmarked within the period stated above; and</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;properly addressed to <B>Attn: Payroll and HR Administrator</B>
at the address stated above.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>IX.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-disparagement</U></B>. Both Company and I agree not to
make negative or disparaging remarks or comments about each other, including, in the case of the Company, about its officers, directors,
management, employees, products or services.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>X.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-interference; Pursuit of Other Employment; Cooperation</U></B>.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-interference</U>. Recognizing that ISI incurs significant
expense in recruiting its personnel and has the right to expect their continued service, I will not interfere with ISI&rsquo;s
relationships with its customers, employees and subcontractors. All contact with the Company (as defined herein) pertaining to
Company business, my employment with ISI, the circumstances surrounding my departure or my rendering of the Consulting Services
contemplated under this Agreement shall be limited to the President and COO or the CFO, or their designees as and if directed by
them. This Section X is not intended to prohibit me from having personal contact with ISI personnel that does not involve any of
the foregoing matters of this Section X and that does not constitute violation of any other provision of this Agreement. I hereby
further acknowledge and agree that all personal contact with ISI personnel will be conducted in compliance with the provisions
of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">I further agree that I will not participate or give assistance in any effort
of any other business, including any business that I may own or operate to hire or engage the services of an ISI employee or subcontractor;
nor will I encourage any ISI employee or subcontractor to leave the employment or service of ISI. I agree that I will not engage
in this form of unfair competition for a period of 12 months after my employment with ISI.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Pursuit of Other Employment</U>. Notwithstanding the foregoing,
the parties agree that I am free to pursue other employment during the term of this Agreement.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Cooperation</U>. In addition, for not less than one (1) year
following termination of my employment, I will cooperate with the Company in any matters involving the transition of my responsibilities
or other matters involving the business of the Company.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Confidentiality</U></B>. I agree that following the termination
of my employment, I will keep confidential, and will not use for my benefit or the benefit of any other company or person, confidential
ISI business information (&ldquo;Confidential Information&rdquo;), including but not limited to the identity of ISI customers and
prospective customers and their requirements for in-store advertising or other in-store signage services provided by ISI; product
designs and manufacturing or production methods; processes and techniques; existing or planned product or service offerings; information
related to ISI projects, business, strategy, sales or marketing plans or proposals; consumer packaged goods (CPG) manufacturer,
other customer and/or retailer information; software codes and computer programs and other technical information or data; customer
lists; price information and cost information; CPG, retail and other contract information or information relating to Company contracts;
financial and administrative techniques or documents or any similar information that is either designated by the Company as &ldquo;Confidential&rdquo;
or similarly identified or, if not designated as &ldquo;Confidential,&rdquo; is of a nature that would normally be considered confidential
in a business setting, regardless of whether it is in the form of hard copies, electronic copies or any other form in which exists;
salary and other ISI personnel information; and Company financial information. I recognize that the Company has furnished any information
of this type to me in confidence on the understanding that I would not disclose any such Confidential Information or use it for
the advantage of myself or anyone other than ISI.</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">If such Confidential Information or property is not on company premises,
I agree that I must make arrangements to return such property and to return all Confidential Information as outlined in Section
XIII below prior to receipt of any of the benefits outlined above, unless the Company is required by law to make such payments.
Regardless as to the Company&rsquo;s obligation to make wage payments or other legal obligations related to benefits, I agree that
I will arrange to return all company property and Confidential Information in my possession.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Return of Property</U></B>. I agree that I will not retain
any copies of Company property or documents. I agree that this obligation is ongoing and that if I subsequently discover any additional
company property that I will promptly return it to ISI. I represent that I have delivered and returned to the Company (and have
not destroyed) (a) all materials of any kind in my possession (or under my control) incorporating Confidential Information (as
such term is defined in any applicable agreement between me and the Company) or otherwise relating to the Company&rsquo;s business
(including but not limited to all such materials and/or information stored on any computer or other storage device owned or used
by me), and (b) all Company property in my possession (or under my control), including (but not limited to) computers, computer
software applications, cellular telephones, pagers, credit cards, keys, records, files, manuals, books, forms, documents, letters,
memoranda, data, tables, photographs, video tapes, audio tapes, computer disks and other computer storage media, all materials
that include trade secrets, and all copies, summaries or notes of any of the foregoing.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XIII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment; No Other Promises or Representations</U></B>.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>. It is intended that, in the event of a change
in control of the Company, the Company shall make good faith efforts to assign this Agreement to the acquiring company or Company&rsquo;s
successor in interest and to obtain the successor company&rsquo;s agreement to meet the obligations of this Agreement.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Other Promises or Representations</U>. I agree that no promise
or representation, other than the promises and representations expressly contained in this Agreement, has been made to me by the
Company with regard to my separation from employment with the Company.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XIV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretation of this Agreement</U></B>. This Agreement should
be interpreted as broadly as possible to achieve my intention to resolve all of My Claims against the Company and to otherwise
fulfill my obligations under this Agreement. If any provision of this Agreement is found to be illegal and/or unenforceable, such
provision shall be severed and modified to the extent necessary to make it enforceable; and as so severed or modified, the remainder
of this Agreement shall remain in full force and effect and enforceable with respect to the release of all the remainder of My
Claims.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Voluntary Release</U></B>. I have read this Agreement carefully.
I understand all of its terms. In signing this Agreement, I have not relied on any statements or explanations made by the Company
except as specifically set forth in this Agreement. I am voluntarily releasing My Claims against the Company without coercion,
duress or reliance on any representations by any ISI employee, agent or attorney and I am voluntarily undertaking my other obligations
under this Agreement without coercion, duress or reliance on any representations by any ISI employee, agent or attorney. I intend
this Agreement to be legally binding.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XVI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Disclosure of this Agreement</U></B>. The parties agree
that the terms of this Agreement are confidential except for disclosures by the Company as required by law or regulation, including
but not limited to securities, tax and accounting laws or regulations. I agree that I will not, directly or indirectly, disclose
any of the terms of this Agreement to anyone other than my immediate family or counsel, except as such disclosure may be required
for accounting or tax reporting purposes or as otherwise may be required by law (for example, by subpoena or other compulsory legal
process).</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XVII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law; Jurisdiction and Venue</U></B>. This Agreement
is governed by and shall be construed in accordance with the laws of the State of Minnesota and any dispute related thereto shall
be exclusively venued in the state courts of Minnesota located in Hennepin County, Minnesota. In the event litigation results involving
this Agreement, the unsuccessful party agrees to pay the prevailing party&rsquo;s reasonable attorneys&rsquo; fees and costs.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XVIII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other Agreements</U></B>. I understand that this Consulting
Agreement and Release of Claims and the employee benefit plans of the Company in which I am a participant contain all of the agreements
between the Company and me. These agreements supersede all other written and oral agreements we may have. Any additions or changes
to this Agreement must be in writing and signed by both parties.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XIX.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination.</U></B> I agree that if I breach any provision
of Sections IX, X, XI, XII, or XVI, Company has the right to terminate this Agreement immediately without further obligation to
make payments for Consulting Services under this Agreement.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XX.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival</U></B>. I understand that the provisions of this
Agreement, by their nature and content, must survive the completion, rescission, termination or expiration of this Agreement in
order to achieve the fundamental purposes of this Agreement (including but not limited to the provisions of paragraphs II.C, IX,
X, XI, XII and XVI of this Agreement) will survive the termination of my employment and the termination, for any reason, of this
Agreement.</P>

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<P STYLE="font: 10pt Times New Roman,serif; margin: 0"><B>XXI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release as Evidence</U></B>. I understand and agree that in
the event that any claim, suit or action shall be commenced by me against ISI, including, but not limited to, claims, suits or
actions relating to my employment with ISI through this date, this Agreement shall constitute a complete defense to any such claims,
suits or actions so instituted.</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP>Alan M. Jones</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP>Insignia Systems, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP>By:</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: windowtext 1pt solid">/s/ Glen P. Dall</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: windowtext 1pt solid">/s/ Alan M. Jones</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP>Title:&nbsp; &nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="border-bottom: windowtext 1pt solid">President and COO</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP>Date signed:&nbsp;&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid">September 27, 2012</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>Date signed:</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid">October 1, 2012</TD></TR>
<TR>
    <TD NOWRAP STYLE="width: 7%">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD NOWRAP STYLE="width: 25%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 53px">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD></TR>
</TABLE>
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