REPRESENTATIONS AND WARRANTIES OF COGNITRONICS AND NEWCO. 25 Section 3.1 Corporate Status; Authorization, etc 25 Section 3.2 No Conflicts, etc 26 Section 3.3 Brokers, Finders, etc 26 Section 3.4 Capitalization 26 Section 3.5 Litigation 27 Section 3.6 SEC Filings; American Stock Exchange 27 Section 3.7 Interim Operation of Merger Sub 27 Section 3.8 Valid Issuance of Cognitronics Shares 27 Section 3.9 Financing 27 Article IV COVENANTS OF THE COMPANY AND THE PRINCIPAL SECURITYHOLDERS 27 Section 4.1 Conduct of Business 27 Section 4.2 Exclusivity 28 Section 4.3 Access and Information 28 Section 4.4 Further Assurances 29 Section 4.5 Confidentiality 29 Article V COVENANTS OF THE PRINCIPAL SECURITYHOLDERS, THE COMPANY, COGNITRONICS AND NEWCO 30 Section 5.1 Public Announcements 30 Section 5.2 Further Actions 30 Section 5.3 Election of Directors of Cognitronics 30 Section 5.4 Indemnification of Officers and Directors 31 Section 5.5 Employee Benefit Plans 32 Article VI CONDITIONS PRECEDENT 33 Section 6.1 Conditions to Obligations of Each Party 33 6.1.1. No Injunction, etc 33 Section 6.2 Conditions to Obligations of Cognitronics and Newco 33 6.2.1. Representations, Performance 33 6.2.2. Consents 34 6.2.3. FIRPTA Certificate 34 6.2.4. Ancillary Agreements 34 6.2.5. Corporate Proceedings 34 6.2.6. Officer's Certificate 34 6.2.7. Secretary's Certificate 35 6.2.8. Expense Certificate 35 6.2.9. Termination of Company Stock Options and Company Rights 35 6.2.10. Employment Agreements 35 Section 6.3 Conditions to Obligations of the Principal Securityholders and the Company 35 6.3.1. Representations; Performance 35 6.3.2. Corporate Proceedings 36 6.3.3. Ancillary Agreements 36 6.3.4. Officer's Certificate 36 6.3.5. Secretary's Certificate 36 6.3.6. Merger Consideration 36 Article VII TERMINATION 37 Section 7.1 Termination 37 Section 7.2 Effect of Termination 37 Article VIII SURVIVAL OR REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION 38 Section 8.1 Indemnification by the Principal Securityholders 38 Section 8.2 Indemnification by Cognitronics 38 Section 8.3 Tax Treatment of Adjustments 39 Section 8.4 Indemnification Procedures 39 Section 8.5 Limitations on Indemnification 40 Section 8.6 Indemnification; Escrow 41 Section 8.7 Survival of Representations and Warranties 41 Section 8.8 Indemnification as Exclusive Remedy 41 Article IX DEFINITIONS 41 Section 9.1 Definitions in Agreement 41 Section 9.2 Additional Definitions 43 Article X MISCELLANEOUS 48 Section 10.1 Securityholders' Representative 48 Section 10.2 Expenses 50 Section 10.3 N...
REPRESENTATIONS AND WARRANTIES OF COGNITRONICS AND NEWCO. Cognitronics and Newco jointly and severally represent and warrant to the Company and to the Principal Securityholders as follows:
