Document:

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                                                                   EXHIBIT 10.5

                      INTEGRATED ALARM SERVICES GROUP, INC.

                          AMENDED EMPLOYMENT AGREEMENT

                  AMENDED EMPLOYMENT AGREEMENT made as of March, 2003 by and
between INTEGRATED ALARM SERVICES GROUP, INC., a Delaware corporation, having an
office at One Capital Center, 99 Pine Street, Albany, New York 12207
(hereinafter referred to as "Employer") and Brian E. Shea, an individual
residing at 862 Worcester Drive, Niskayuna, NY 12309 (hereinafter referred to as
"Employee");

                              W I T N E S S E T H:

                  WHEREAS, Employer desires to employ Employee as the Executive
Vice President of Employer; and

                  WHEREAS, Employee is willing to be employed as the Executive
Vice President of Employer in the manner provided for herein, and to perform
the duties of the Chief Financial Officer of Employer upon the terms and
conditions herein set forth;

                  NOW, THEREFORE, in consideration of the promises and mutual
covenants herein set forth it is agreed as follows:

                  1. Employment of Executive Vice President of Employer.
Employer hereby employs Employee as Executive Vice President.

                  2. Term.

                     a. Subject to Section 9 and Section 10 below, the term of
this Agreement shall be for a period of thirty-six (36) months commencing on
October 1,2002. The Term of this Agreement shall be automatically extended for
additional one (1) year periods, unless either party notifies the other in
writing at least ninety (90) days prior to the expiration of the then existing
Term of its intention not to extend the Term. During the Term, Employee shall
devote substantially all of his business time and efforts to Employer and its
subsidiaries and affiliates.

                  3. Duties. The Employee shall perform those functions
generally performed by persons of such title and position, shall attend all
meetings of the stockholders and the Board, shall perform any and all related
duties and shall have any and all powers as may be prescribed by resolution of
the Board, and shall be available to confer and consult with and advise the
officers and directors of Employer at such times that may be required by
Employer. Employee shall report directly to the Employer's Chief Executive
Officers.

                                      -1-
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                  4. Compensation.

                     a. (i) Employee shall be paid a minimum of $160,000 per
year during the Term of this Agreement. Employee shall be paid periodically in
accordance with the policies of the Employer during the term of this Agreement,
but not less than monthly.

                        (ii) Employee is eligible for an annual bonus, if any,
which will be determined and paid in accordance with policies set from time to
time by the Board.

                     b. Employer shall include Employee in its health insurance
program available to Employer's executive officers and shall pay 100% of the
premiums for such program.

                     c. Employee shall have the right to participate in any
other employee benefit plans established by Employer.

                     d. (i) In the event of a "Change of Control" whereby:

         (A) A person (other than a person who is an officer or a Director of
Employer on the effective date hereof), including a "group" as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934, becomes, or obtains the
right to become, the beneficial owner of Employer securities having 50% or more
of the combined voting power of then outstanding securities of the Employer that
may be cast for the election of directors of the Employer;

         (B) At any time, a majority of the Board-nominated slate of candidates
for the Board is not elected;

         (C) Employer consummates a merger in which it is not the surviving
entity;

         (D) Substantially all Employer's assets are sold; or

                                      -2-
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         (E) Employer's stockholders approve the dissolution or liquidation of
Employer; then

             (ii) (A) All stock options and warrants ("Rights")
granted by Employer to Employee under any plan or otherwise prior to the
effective date of the Change of Control, shall become vested, accelerate and
become immediately exercisable.

                  (B) If at any time within two years of the said Change of
Control, Employee is not retained by Employer or the surviving entity, as
applicable, under terms and conditions substantially similar to those herein, or
if Employee's duties require employee to move to a location not acceptable to
Employee, then in addition, Employee shall be eligible to receive a one-time
cash bonus, equal on an after-tax basis to two times his average compensation
for the three previous fiscal years. Such compensation shall include salary,
bonus, and any other compensation pursuant hereto. Said bonus shall be paid
within thirty (30) days of the change of Employee's employment conditions.

                  5. Expenses. Employee shall be reimbursed for all of his
actual out-of-pocket expenses incurred in the performance of his duties
hereunder, provided such expenses are acceptable to Employer, which approval
shall not be unreasonably withheld, for business related travel and
entertainment expenses, and that Employee shall submit to Employer reasonably
detailed receipts with respect thereto.

                  6. Vacation. Employee shall be entitled to receive four (4)
weeks paid vacation time after each year of employment upon dates agreed upon by
Employer. Upon separation of employment, for any reason, vacation time accrued
and not used shall be paid at the salary rate of Employee in effect at the time
of employment separation.

                  7. Secrecy. At no time shall Employee disclose to anyone any
confidential or secret information (not already constituting information
available to the public) concerning the internal affairs, business operations,
and trade secrets of Employer.

                                      -3-
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                  8. Covenant Not to Compete.

         (a) Subject to, and limited by, Section 10(b), Employee will not, at
any time, during the term of this Agreement, and for one (1) year thereafter,
either directly or indirectly, engage in, with or for any enterprise,
institution, whether or not for profit, business, or company, competitive with
the business (as identified herein) of Employer as such business may be
conducted on the date thereof, as a creditor, guarantor, or financial backer,
stockholder, director, officer, consultant, advisor, employee, member, or
otherwise of or through any corporation, partnership, association, sole
proprietorship or other entity; provided, that an investment by Employee, his
spouse or his children is permitted if such investment is not more than four
percent (4%) of the total debt or equity capital of any such competitive
enterprise or business and further provided that said competitive enterprise or
business is a publicly held entity whose stock is listed and traded on a
national stock exchange, the NASDAQ Stock Market, or the over-the-counter
bulletin board or any successor thereto. As used in this Agreement, the business
of Employer shall be deemed to include wholesale monitoring and related support
services, and financing solutions and products, within the security alarm
industry.

         (b) For a period one year from the date of termination of this
agreement Employee shall not contact or solicit any of the Employer's dealers,
customers, employees or suppliers.

                  9. Termination.

                     a. Termination by Employer

                        (i) Employer may terminate this Agreement upon written
notice for Cause. For purposes hereof, "Cause" shall mean (A) Employee's
misconduct as could reasonably be expected to have a material adverse effect on
the business and affairs of Employer, (B) the Employee's disregard of lawful
instructions of Employer's Board of Directors consistent with Employee's
position relating to the business of Employer or neglect of duties or failure to
act, which, in each case, could reasonably be expected to have a material
adverse effect on the business and affairs of Employer,(C) engaging by the
Employee in conduct that constitutes activity in competition with Employer; (D)
the conviction of Employee for the commission of a felony; and/or (E) the
habitual abuse of alcohol or controlled substances. Notwithstanding anything to
the contrary in this Section 9(a)(i), Employer may not terminate Employee's
employment under this Agreement for Cause unless Employee shall have first
received notice from the Board advising Employee of the specific acts or
omissions alleged to constitute Cause, and such acts or omissions continue after
Employee shall have had a reasonable opportunity (at least 10 days from the date
Employee receives the notice from the Board) to correct the acts or omissions so
complained of. In no event shall alleged incompetence of Employee in the
performance of Employee's duties be deemed grounds for termination for Cause.

                                      -4-
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                        (ii) This agreement automatically shall terminate upon
the death of Employee, except that Employee's estate shall be entitled to
receive any amount accrued under Section 4(a).

                     b. Termination by Employee

                        (i) Employee shall have the right to terminate his
employment under this Agreement upon 30 days' notice to Employer given within 90
days following the occurrence of any of the following events (A) through (G):

                            (A) Employee is not elected or retained as the Chief
Financial Officer.

                            (B) Employer acts to materially reduce Employee's
duties and responsibilities hereunder. Employee's duties and responsibilities
shall not be deemed materially reduced for purposes hereof solely by virtue of
the fact that Employer is (or substantially all of its assets are) sold to, or
is combined with, another entity, provided that Employee shall continue to have
the same duties and responsibilities with respect to Employer's business, and
Employee shall report directly to the chief executive officer and/or board of
directors of the entity (or individual) that acquires Employer or its assets.

                            (C) Employer acts to change the geographic location
of the performance of Employee's duties from the Albany, New York area. For
purposes of this Agreement, the Albany, New York area shall be deemed to be the
area within 30 miles of the current address of the Employer as set forth above.

                            (D) A Material Reduction (as hereinafter defined) in
Employee's rate of base compensation, or Employee's other benefits. "Material
Reduction" shall mean a ten percent (10%) differential;

                            (E) A failure by Employer to obtain the assumption
of this Agreement by any successor;

                            (F) A material breach of this Agreement by Employer,
which is not cured within thirty (30) days of written notice of such breach by
Employer;

                            (G) A Change of Control.

                        (ii) Anything herein to the contrary notwithstanding,
Employee may terminate this Agreement upon thirty (30) days written notice.

                                      -5-
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                        (iii) If Employee shall terminate this Agreement under
Section 9(b)(i), Employee shall be entitled to receive 12 months salary. Other
than the payment of 12 months salary to Employee, Employer shall have no further
obligation to compensate Employee pursuant to Section 4 above. If Employee shall
terminate this Agreement pursuant to Section 9(b)(ii), Employee shall only be
entitled to any accrued and unpaid compensation as of the date of termination as
provided in Section 4(a)(i).

                  10. Consequences of Breach by Employer;
                      Employment Termination

                      a. If this Agreement is terminated pursuant to Section
9(b)(i) hereof, or if Employer shall terminate Employee's employment under this
Agreement in any way that is a breach of this Agreement by Employer, the
following shall apply:

                         (i) Employee shall be entitled to payment of 24 months
salary; and

                         (ii) Employee shall be entitled to payment of any
previously declared bonus as provided in Section 4(a) above.

                      b. In the event of termination of Employee's employment
pursuant to Section 9(b)(i) of this Agreement, the provisions of Section 8 shall
not apply to Employee.

                  11. Remedies

                      Employer recognizes that because of Employee's special
talents, stature and opportunities in the computer industry, and because of the
special creative nature of and compensation practices of said industry and the
material impact that individual projects can have on the Company's results of
operations, in the event of termination by Employer hereunder (except under
Section 9(a)(i) or (iii), or in the event of termination by Employee under
Section 9(b)(i) before the end of the agreed term, the Employer acknowledges and
agrees that the provisions of this Agreement regarding further payments of base
salary, bonuses and the exercisability of Rights constitute fair and reasonable
provisions for the consequences of such termination, do not constitute a
penalty, and such payments and benefits shall not be limited or reduced by
amounts' Employee might earn or be able to earn from any other employment or
ventures during the remainder of the agreed term of this Agreement.

                                      -6-
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                  12. Excise Tax. In the event that any payment or benefit
received or to be received by Employee in connection with a termination of his
employment with Employer would constitute a "parachute payment" within the
meaning of Code Section 280G or any similar or successor provision to 280G
and/or would be subject to any excise tax imposed by Code Section 4999 or any
similar or successor provision then Employer shall assume all liability for the
payment of any such tax and Employer shall immediately reimburse Employee on a
"grossed-up" basis for any income taxes attributable to Employee by reason of
such Employer payment and reimbursements.

                  13. Attorneys' Fees and Costs. If any action at law or in
equity is necessary to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which he may be
entitled.

                  14. Entire Agreement; Survival. This Agreement contains the
entire agreement between the parties with respect to the transactions
contemplated herein and supersedes, effective as of the date hereof any prior
agreement or understanding between Employer and Employee with respect to
Employee's employment by Employer. The unenforceability of any provision of this
Agreement shall not effect the enforceability of any other provision. This
Agreement may not be amended except by an agreement in writing signed by the
Employee and the Employer, or any waiver, change, discharge or modification as
sought. Waiver of or failure to exercise any rights provided by this Agreement
and in any respect shall not be deemed a waiver of any further or future rights.

                      b. The provisions of Sections 4, 7, 8, 9(a)(ii), 9(c), 10,
11, 12, 14, 16, 17 and 18 shall survive the termination of this Agreement.

                  15. Assignment. This Agreement shall not be assigned to other
parties.

                  16. Governing Law. This Agreement and all the amendments
hereof, and waivers and consents with respect thereto shall be governed by the
internal laws of the State of New York, without regard to the conflicts of laws
principles thereof.

                  17. Notices. All notices, responses, demands or other
communications under this Agreement shall be in writing and shall be deemed to
have been given when

                      a. delivered by hand;

                      b. sent be telex or telefax, (with receipt confirmed),
provided that a copy is mailed by registered or certified mail, return receipt
requested; or

                                      -7-
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                      c. received by the addressee as sent be express delivery
service (receipt requested) in each case to the appropriate addresses, telex
numbers and telefax numbers as the party may designate to itself by notice to
the other parties:

                          (i) if to the Employer:

                              Integrated Alarm Services Group, Inc.
                              99 Pine Street, 5th Floor
                              Albany, New York
                              Attention: Mary Ann McGinn

                              Telefax: (518)449-4894
                              Telephone: (518)449-5131

                              Gersten, Savage, Kaplowitz,
                              Wolf & Marcus LLP
                              101 East 52nd Street
                              9th Floor
                              New York, New York 10022

                              Attention:  Arthur S. Marcus, Esq.

                              Telefax: (212) 980-5192
                              Telephone: (212) 752-9700

                         (ii) if to the Employee:

                              Brian E. Shea
                              862 Worcester Drive
                              Niskayuna, NY 12309

                  18. Severability of Agreement. Should any part of this
Agreement for any reason be declared invalid by a court of competent
jurisdiction, such decision shall not affect the validity of any remaining
portion, which remaining provisions shall remain in full force and effect as if
this Agreement had been executed with the invalid portion thereof eliminated,
and it is hereby declared the intention of the parties that they would have
executed the remaining portions of this Agreement without including any such
part, parts or portions which may, for any reason, be hereafter declared
invalid.

                                      -8-
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                  IN WITNESS WHEREOF, the understand have executed this
agreement as of the day and year first above written.

                                   INTEGRATED ALARM SERVICES GROUP, INC.

                                        By: /s/ Timothy M. McGinn
                                            -------------------------------
                                            Timothy M. McGinn
                                            Chief Executive Officer

                                            /s/ Brian E. Shea
                                            -------------------------------
                                            Brian E. Shea

                                      -9-<PAGE>

[Form of 10-year Lock-Up Agreement]                               EXHIBIT 10.21

                      INTEGRATED ALARM SERVICES GROUP, INC.

                     Initial Public Offering of Common Stock
                     ---------------------------------------

                                                                         ,2003

FRIEDMAN, BILLINGS, RAMSEY & CO., INC.
McGINN SMITH & CO., INC.
  as Representatives of the several Underwriters
c/o  Friedman, Billings, Ramsey & Co., Inc.
     1001 19th Street North
     Arlington, Virginia  22209

Ladies and Gentlemen:

         This letter is being delivered to you in connection with the proposed
Underwriting Agreement (the "Underwriting Agreement"), between Integrated Alarm
Services Group, Inc, a Delaware corporation (the "Company"), and
each of you as representatives of a group of Underwriters named therein,
relating to an underwritten public offering of Common Stock, $0.001 par value
(the "Common Stock"), of the Company.

         In order to induce you and the other Underwriters to enter into the
Underwriting Agreement, the undersigned will not, without the prior written
consent of Friedman, Billings, Ramsey & Co., Inc., offer, sell, contract to
sell, pledge or otherwise dispose of, (or enter into any transaction which is
designed to, or might reasonably be expected to, result in the disposition
(whether by actual disposition or effective economic disposition due to cash
settlement or otherwise) by the undersigned or any affiliate of the undersigned
or any person in privity with the undersigned or any affiliate of the
undersigned), directly or indirectly, including the filing (or participation in
the filing) of a registration statement with the Securities and Exchange
Commission in respect of, or establish or increase a put equivalent position or
liquidate or decrease a call equivalent position within the meaning of Section
16 of the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Securities and Exchange Commission promulgated thereunder
with respect to, or publicly announce an intention to effect any such
transaction with respect to the amount of shares set forth opposite the
respective undersigned's name (the "10-year Lock-Up Shares") set forth on
Schedule I attached hereto for a period of 10 years after the date of this
Agreement. In the event that the Company achieves certain pre-determined Net
Income hurdles certain of the 10-year lock-up may be eligible for release from
the 10-year lock-up. For purposes of this agreement, Net Income shall have the
meaning ascribed to it under GAAP, as further amended by adding back to Net
Income any expenses associated with the early termination of debt or other costs
directly attributable to the Company's IPO. The 10-Year Lock-Up Shares, or a
portion thereof, may be disposed of earlier than such 10 year period if:

<PAGE>

                       (i)      in eighteen months ending December 31, 2004:
                           a.   the Company earns $22 million in Net Income,
                                then the 10-year lock-up shall be released
                                completely as to 30% of the 10-Year Lock-Up
                                Shares (this 30% shall be referred to as the
                                "2003 Lock-Up Shares")
                           b.   the Company earns $19.8 million in Net Income,
                                then the 10-year lock-up shall terminate
                                completely as to 75% of the 2003 Lock-Up
                                Shares.
                           c.   the Company earns $17.6 million in Net Income,
                                then the 10-year lock-up shall terminate
                                completely as to 50% of the 2003 Lock-Up
                                Shares.

                       (ii)     in 2005:
                           a.   the Company earns $24 million in Net Income,
                                then the 10-year lock-up shall terminate
                                completely as to 30% of the 10-Year Lock-Up
                                Shares (the "2005 Lock-Up Shares").
                           b.   the Company earns $21.6 million in Net Income,
                                then the 10-year lock-up shall terminate
                                completely as to 75% of the 2005 Lock-Up
                                Shares.
                           c.   the Company earns $19.2 million in Net Income,
                                then the 10-year lock-up shall terminate
                                completely as to 50% of the 2005 Lock-Up
                                Shares.

                       (iii)    in 2006:
                           a.   the Company earns $33 million in Net Income,
                                then the 10-year lock-up shall terminate
                                completely as to 40% of the 10-Year Lock-Up
                                Shares (the "2006 Lock-Up Shares").
                           b.   Should the Company earn $29.7 million in Net
                                Income, then the 10-year lock-up shall
                                terminate completely as to 75% of the 2006
                                Lock-Up Shares.

<PAGE>

                           c.   the Company earns $26.4 million in Net
                                Income, then the 10-year lock-up shall
                                terminate completely as to 50% of the 2006
                                Lock-Up Shares.
                           (iv) Any 10-Year Lock-Up Shares not released from
                                the 10-year lock-up in each of the eighteen
                                months ending December 31, 2004, 2005 or
                                2006, are eligible for release from the
                                10-Year Lock-Up if the COmpany meets the net
                                income hurdles on a cumulative basis. By
                                way of example, if cumulative Net Income for
                                the eighteen months ending December 31, 2004
                                and 2005 is greater than $46 million,
                                then the 10-year lock-up shall terminate
                                completely as to 60% of the 10-Year Lock-Up
                                Shares. Likewise, if cumulative Net Income
                                for 2006 exceeds $79 million, then the
                                10-year lock-up shall completely terminate
                                as to 100% of the 10-Year Lock-Up Shares.

                  4. Recapitalization. Any new, substituted or additional
securities or other property (including cash paid other than as a regular cash
dividend) which is by reason of any Recapitalization distributed with respect to
the 10-Year Lock-Up Shares shall be immediately subject to the same lock-up
provisions. Appropriate adjustments to reflect such distribution shall be made
to the number of 10-Year Lock-Up Shares subject to this Agreement.

                  5. Corporate Transaction.

                           (a) The restriction on transfer hereunder shall
         automatically terminate in its entirety, and all the 10-Year Lock-Up
         Shares shall be free from restriction hereunder immediately prior to
         the consummation of:

                                    (i) a merger or consolidation in which
         securities possessing more than fifty percent (50%) of the total
         combined voting power of the Corporation's outstanding securities are
         transferred to a person or persons different from the persons holding
         those securities immediately prior to such transaction, or

                                    (ii) the sale, transfer or other disposition
         of all or substantially all of the Corporation's assets in complete
         liquidation or dissolution of the Corporation any Corporate
         Transaction.

<PAGE>

         6. GENERAL PROVISIONS

                  1. Notices. Any notice required to be given under this
Agreement shall be in writing and shall be deemed effective upon personal
delivery or upon deposit in the U.S. mail, registered or certified, postage
prepaid and properly addressed to the party entitled to such notice at the
address indicated below such party's signature line on this Agreement or at such
other address as such party may designate by ten (10) days advance written
notice under this paragraph to all other parties to this Agreement.

                  2. No Waiver. No waiver of any breach or condition of this
Agreement shall be deemed to be a waiver of any other or subsequent breach or
condition, whether of like or different nature.

         7. MISCELLANEOUS PROVISIONS

                  1. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York without resort
to that State's conflict-of-laws rules.

                  2. Stockholder Undertaking. Stockholder hereby agrees to take
whatever additional action and execute whatever additional documents the Company
may deem necessary or advisable in order to carry out or effect one or more of
the obligations or restrictions imposed on either the Stockholder or the 10-Year
Lock-Up Shares pursuant to the provisions of this Agreement.

                  3. Agreement is Entire Contract. This Agreement constitutes
the entire contract between the parties hereto with regard to the subject matter
hereof.

                  4. Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument

<PAGE>

                  5. Successors and Assigns. The provisions of this Agreement
shall inure to the benefit of, and be binding upon, the Company and its
successors and assigns and upon the Stockholder, Stockholder's assigns and the
legal representatives, heirs and legatees of Stockholder's estate, whether or
not any such person shall have become a party to this Agreement and have agreed
in writing to join herein and be bound by the terms hereof.

         IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first indicated above.

____________________________
Timothy M. McGinn

____________________________
Address

____________________________
David L. Smith

____________________________
Address

____________________________
Thomas J. Few, Sr.

____________________________
Address

____________________________
Curtis E. Quady

____________________________
Address

____________________________
Duane J. Plowman

____________________________
Address

____________________________
Jill C. Quady

____________________________
Address

____________________________
Lisa M. Fischer

____________________________
Address

____________________________
David L. Speed

____________________________
Address

____________________________
Vincent M. Erickson

____________________________
Address

____________________________
Raymond J. Menard

____________________________
Address

<PAGE>

                                   Schedule 1
                                   ----------

                             10-Year Lock-Up Shares

Name                                          Number of 10-Year Lock-Up Shares
----                                          --------------------------------

Timothy M. McGinn                             159,037

David L. Smith                                159,036

Thomas J. Few, Sr.                            114,199

Curtis E. Quady                               11,663

Duane J. Plowman                              3,202

Jill C. Quady                                 2,228

Lisa M. Fischer                               2,228

Ray Menard                                    1,623

David L. Speed                                1,113

Vincent M. Erickson                           216

<PAGE>

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

         FOR VALUE RECEIVED _____________ hereby sell(s), assign(s) and
transfer(s) unto Integrated Alarm Services Group, Inc. (the "Corporation"),
_____________ (_______) shares of the common stock of the Corporation standing
in his or her name on the books of the Corporation represented by Certificate
No. ____________ herewith and do(es) hereby irrevocably constitute and appoint
____________________ Attorney to transfer the said stock on the books of the
Corporation with full power of substitution in the premises.

Dated:____________

                                                _______________________________
                                                Signature

Instruction: Please do not fill in any blanks other than the signature line.
Please sign exactly as you would like your name to appear on the issued stock
certificate. The purpose of this assignment is to enable the Corporation to
exercise its right to foreclose on Restricted Shares that become subject to
forfeiture without requiring additional signatures by the part of the
Stockholder.

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