MEMORANDUM OF UNDERSTANDING

Exhibit 10.1

MEMORANDUM OF UNDERSTANDING

WHEREAS, Integrated Electrical Services, Inc. (the “Company”) and James A. Robertson (“Robertson”) are parties to that certain Employment Agreement, entered into on December 6, 2007 (the “Employment Agreement”),and

WHEREAS, the Company has determined that it no longer needs the services of Robertson as Group Vice President, Industrial; and

WHEREAS, pursuant to Article IV C. of the Employment Agreement Robertson is entitled to resign for Good Reason as defined in the Employment Agreement and receive certain payments and benefits; and

WHEREAS, the Company desires to retain the services of Robertson for a period of time following his removal as Group Vice President, Industrial to assist in transition of duties;

NOW, THEREFORE, for and in consideration of the mutual promises, covenants and undertakings contained in this Memorandum of Understanding, and intending to be legally bound, the Company and Robertson agree as follows: