INSIGNIA SYSTEMS, INC. 2007 EXECUTIVE INCENTIVE PLAN

EXHIBIT 10.25

INSIGNIA SYSTEMS, INC.

2007 EXECUTIVE INCENTIVE PLAN

1.           Purpose. The purpose of this Plan is to assist the corporation in retaining and motivating certain officers of the corporation for the benefit of the corporation and its shareholders.

2.           Eligibility. The employees eligible to participate in this Plan are the individuals employed in the following positions as of February 20, 2007: the Vice President of Finance, Senior Vice President of Marketing Services, Vice President of Operations, Vice President of Technology Development, and Controller. An eligible employee must be employed on December 31, 2007 to earn a bonus.

3.           Duration of Plan. This Plan shall be effective for the corporation’s fiscal year ending December 31, 2007.

4.           Bonus Amounts. Each eligible employee may earn a bonus in 2007, equal to a specified percentage of his base salary, based upon the amount of POPS revenue and corporate net income earned by the Company in 2007. Attached is a schedule showing three tiers of bonus levels, and the minimum amounts of POPS revenue and corporate net income required to earn the bonus payable at each tier. If the amount of POPS revenue and/or corporate net income earned by the Company in 2007 increases above the minimum amounts required for any tier, but does not reach the minimum amounts required for the next tier, the bonus percentages payable within such tier shall increase proportionately. In calculating corporate net income for 2007, any amount awarded to the Company as damages in litigation, any amount payable to the Company in settlement of litigation, and any tax benefit recorded resulting from the adjustment of the deferred tax asset valuation allowance, shall be excluded.

5.           Calculation and Approval of Bonuses. Bonus amounts shall be calculated by the corporation’s CFO based on the accounting methods and procedures used in preparing the corporation’s audited financial statements for 2007.

All bonus calculations shall be reviewed and approved by the Compensation Committee prior to payment. The Compensation Committee retains sole and absolute discretion to increase, decrease or otherwise modify any bonus payable to any eligible employee.

6.           Payment of Bonuses. Earned bonuses shall be paid as soon as administratively feasible after December 31, 2007. All payments shall be reduced by applicable withholdings.

7.           Non-Assignability. An eligible employee may not assign or transfer his right to payment under this Plan, except to his heirs in the event of his death after December 31, 2007 and prior to payment, and his right to payment may not be attached by his creditors.

8.           No Continued Employment. Nothing contained in this Plan shall be construed as guaranteeing continued employment to any eligible employee.

SCHEDULE

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Notes: