Document:

EXHIBIT 10.1
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                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT, dated as of November 21, 2006, by and
between Cognitronics Corporation, a New York corporation (the "Company"), and
John Steinkrauss (hereinafter called the "Employee").

                                   WITNESSETH:

         WHEREAS, the Company desires that the Employee serve as the Vice
President, Chief Financial Officer and Treasurer of the Company and the Employee
is willing to serve the Company in such capacities.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and other good and valuable consideration, the parties hereto agree as
follows:

Section 1.        Employment

         Effective as of November 20, 2006, the Company will employ the Employee
and the Employee will perform services for the Company and its subsidiaries on
the terms and conditions set forth in this Agreement and for the period
specified in Section 3 hereof ("Term of Employment").

Section 2.        Duties

         The Employee, during the Term of Employment, will serve the Company as
its Vice President, Chief Financial Officer and Treasurer. The Employee will
have such duties and responsibilities as are assigned to him by the Board of
Directors of the Company or the Chief Executive Officer of the Company
commensurate with his positions as Vice President, Chief Financial Officer and
Treasurer of the Company. The Employee will perform his duties hereunder
faithfully and to the best of his abilities and in furtherance of the business
of the Company and its subsidiaries, and will devote his full business time,
energy, attention and skill to the business of the Company and its subsidiaries
and to the promotion of its interests, except as otherwise agreed by the
Company. The Employee warrants and represents that he is free to enter into this
Agreement and is not restricted by any prior or existing agreement and the
Company may rely on such representation in entering into this Agreement.

Section 3.        Term of Employment

         The Employee's employment hereunder shall be "at will" and is
terminable at any time by either party, subject to the provisions of Sections 10
and 11 hereof.

Section 4.        Salary

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         The Employee will receive, as compensation for his duties and
obligations to the Company pursuant to this Agreement, a base salary at the
annual rate of One Hundred Sixty-Five Thousand Dollars ($165,000), payable in
substantially equal installments in accordance with the Company's payroll
practice. It is agreed between the parties that the Company will review the base
annual salary annually and in light of such review may (but will not be
obligated to), in the discretion of the Compensation Committee of the Board of
Directors of the Company, increase such annual base salary taking into account
any change in the Employee's responsibilities, increases in the cost of living,
performance by the Employee, and other pertinent factors.

Section 5.        Bonus

         During the Term of Employment, the Employee will be eligible for an
annual cash bonus as determined at the sole discretion of the Compensation
Committee of the Board of Directors.

Section 6.        Restricted Stock Grant

         Concurrently herewith, the Company will grant to the Employee, subject
to listing approval of the American Stock Exchange, an "inducement" grant of
75,000 shares of restricted common stock of the Company (the "Employee
Restricted Shares"). All of the Employee Restricted Shares will vest (i.e. the
restrictions thereon shall lapse) on the fourth anniversary of the date hereof.
The Employee Restricted Shares will also vest in full (i) upon a change of
control of the Company or (ii) if the employment of the Employee is terminated
by the Company without Serious Cause (as defined below), as further described in
the Restricted Stock Agreement between the parties with respect to the Employee
Restricted Shares.

Section 7.        Employee Benefits

         Subject to any applicable probationary or similar periods, during the
Term of Employment, the Employee will be entitled to participate in all employee
benefit programs of the Company, as such programs may be in effect from time to
time Subject to any applicable probationary or similar periods, during the Term
of Employment, the Employee will also be entitled to participate in all
retirement programs of the Company for which current employees are eligible, as
such programs may be in effect from time to time (including the Company's 401(k)
plan, but not including the Company's defined benefit retirement plan or other
terminated postretirement plans).

Section 8.        Business Expenses

         All reasonable travel and other out-of-pocket expenses incidental to
the rendering of services by the Employee hereunder will be paid by the Company
and if expenses are paid in the first instance by the Employee, the Company will
reimburse him therefor upon presentation of proper invoices; subject in each
case to compliance with the Company's reimbursement policies and procedures.

Section 9.        Vacations and Sick Leave

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         The Employee will be entitled to holidays, reasonable vacation and
reasonable sick leave each year, in accordance with policies of the Company, as
determined by the Board of Directors, provided, however, that the Employee will
be entitled to a minimum of four (4) weeks vacation per year.

Section 10.       Termination

         (a) Termination by the Company for Serious Cause. In the event of
Serious Cause (as defined below), the Company may terminate the Employee's
employment and the Term of Employment upon written notice of such termination
stating the Serious Cause upon which the Company relies for its termination. The
Employee's employment and the Term of Employment will be terminated effective as
of the date specified in such notice, which will in no event be earlier than the
effective date of such notice as provided in Section 19.

         "Serious Cause" means (i) the willful and continued failure by the
Employee to perform substantially his duties hereunder, other than by reasons of
health, after demand for substantial performance is delivered by the Company
that identifies the manner in which the Company believes the Employee has not
substantially performed his duties; (ii) the Employee will have been indicted by
any federal, state or local authority in any jurisdiction for, or will have
pleaded guilty or nolo contendere to, an act constituting a felony, (iii) the
Employee will have habitually abused any controlled substance (such as narcotics
or alcohol), or (iv) the Employee will have (A) engaged in acts of fraud,
material dishonesty or gross misconduct in connection with the business of the
Company, or (B) committed a material breach of this Agreement.

         (b) Termination by Employee for Good Reason. The Employee may terminate
his employment and the Term of Employment in the event of Good Reason (as
defined below) upon thirty (30) days' prior written notice of such termination
stating the Good Reason upon which the Employee relies for his termination. The
Employee's employment and the Term of Employment will be terminated effective as
of the date specified in such notice, which in no event will be earlier than the
effective date of such notice as provided in Section 19.

         "Good Reason" means (i) a reduction in the Employee's salary or
benefits other than an across-the-board reduction affecting all members of
senior management, (ii) a material reduction of the Employee's duties and
significant responsibilities hereunder (not including reasonable changes in
title or in corporate structure), or (iii) a material breach of this Agreement
by the Company.

         (c) Effect of Termination for Serious Cause or Without Good Reason. In
the event of termination of the Employee's employment and the Term of Employment
by the Company for Serious Cause or by the Employee without Good Reason, the
Employee will forfeit all bonus amounts for the then current fiscal year, and
the Company will be liable to the Employee only for (i) any accrued but unpaid
base salary and vacation, (ii) any earned but unpaid bonus from a prior fiscal
year (subject, if applicable, to the terms of any deferred compensation
arrangements), and (iii) reimbursement of business expenses incurred prior to
the date of termination.

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         (d) Death, Retirement, Disability. In the event of the death,
Retirement or Disability of the Employee, the Employee's employment and Term of
Employment will be terminated as of the date of such death, Retirement or
Disability and the Company will pay the Employee, or the Employee's estate or
legal representative, as appropriate, (i) any accrued but unpaid base salary and
vacation, (ii) any earned but unpaid bonus from a prior fiscal year (subject, if
applicable, to the terms of any deferred compensation arrangements), and (iii)
reimbursement of business expenses incurred prior to the date of termination.

         "Disability" means the Employee's inability, for reasons of health, to
carry out the functions of his position for a total of one hundred eighty (180)
days during any twelve (12) month period. "Retirement" will mean retirement from
employment upon or after attaining age sixty-five (65) or such earlier age
agreed to by the Company.

         (e) Effect of Termination Without Serious Cause or With Good Reason. If
(i) the Company terminates the Term of Employment and the Employee's employment
herein without Serious Cause, or (ii) the Employee terminates the Term of
Employment and his employment hereunder for Good Reason, the Company will
continue to pay the Employee his then-current base salary for a period of six
(6) months from the date of such termination. In addition, the Employee will be
entitled to prompt payment of (A) any accrued but unpaid salary and vacation,
(B) any earned but unpaid bonus from a prior fiscal year (subject, if
applicable, to the terms of any deferred compensation arrangements), (C) the
Company's health benefit plans (with standard employee payment in an amount not
to exceed the payment level immediately prior to termination) for the period of
six (6) months, and (D) reimbursement of business expenses incurred prior to the
date of termination.

         (f) No Other Obligations. In the event of the termination of the
Employee's employment and the Term of Employment pursuant to Sections 10 or 11
herein, the Company will have no obligations to the Employee other than those
set forth in Sections 10 and 11 herein.

Section 11.       Change of Control

         (a) Effect of Termination. If (i) the employment of the Employee is
terminated by the Company (or successor thereto) without Serious Cause or (ii)
the Employee terminates employment with the Company (or successor thereto) for
Good Reason, within the period commencing on the date that a Change of Control
is formally proposed to the Company's Board of Directors and ending on the
second anniversary of the date on which such Change of Control occurs, then the
Employee will be entitled to receive his then-current base salary for a period
of one (1) year from the date of such termination and in addition, the Employee
will be entitled to prompt payment of (A) any accrued but unpaid salary and
vacation, (B) any earned but unpaid bonus from a prior fiscal year (subject, if
applicable, to the terms of any deferred compensation arrangements), (C) the
Company's health benefit plans (with standard employee payment in an amount not
to exceed the payment level immediately prior to the Change of Control) for the
period of one (1) year, and (D) reimbursement of business expenses incurred
prior to the date of termination.

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         If any portion of the payments which the Employee has the right to
receive from the Company, or any affiliated entity or successor, hereunder would
constitute "excess parachute payments" (as defined in Section 280G of the
Internal Revenue Code) subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code, such excess parachute payments shall be reduced to the
largest amount that will result in no portion of such excess parachute payments
being subject to the excise tax imposed by Section 4999 of the Internal Revenue
Code.

         The Employee will not be entitled to any benefits or other entitlements
under this section unless a Change of Control actually occurs. Any amounts
payable pursuant to this Section 11 shall not duplicate amounts payable under
Section 10 and vice versa.

         (b) Change of Control. A "Change of Control" of the Company will be
deemed to have occurred if (i) any "person" (as such term is defined in Section
3(a)(9) and as used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934 (the "Exchange Act"), excluding the Company or any of its subsidiaries,
a trustee or any fiduciary holding securities under an employee benefit plan of
the Company or any of its subsidiaries, an underwriter temporarily holding
securities pursuant to an offering of such securities or a corporation owned,
directly or indirectly, by shareholders of the Company in substantially the same
proportion as their ownership of the Company, becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing an increase from less than Twenty Percent
(20%) to Fifty Percent (50%) or more of the combined voting power of the
Company's then outstanding securities ("Voting Securities"); (ii) during any
period of not more than two (2) years, individuals who constitute the Board of
Directors of the Company (the "Board") as of the beginning of the period and any
new director (other than a director designated by a person who has entered into
an agreement with the Company to effect a transaction described in clause (i) or
(iii) of this sentence) whose election by the Board or nomination for election
by the Company's shareholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at such
time or whose election or nomination for election was previously so approved,
cease for any reason to constitute a majority thereof; (iii) the stockholders of
the Company approve a merger, consolidation or reorganization or a court of
competent jurisdiction approves a scheme or arrangement of the Company, other
than a merger, consolidation, reorganization or scheme which would result in the
Voting Securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into Voting Securities of the surviving entity) at least Fifty Percent (50%) of
the combined voting power of the Voting Securities of the Company or such
surviving entity outstanding immediately after such merger, consolidation,
reorganization or scheme or arrangement, and such transaction is completed; or
(iv) the stockholders of the Company approve a plan of complete liquidation of
the Company or any agreement for the sale of substantially all of the Company's
assets, and such transaction is completed.

Section 12.       Agreement Not to Compete or Solicit

         (a) Covenant Not to Compete. The Employee hereby covenants and agrees
that at no time during the Term of Employment nor for a period of six (6) months
(such period to be one (1) year in the case of a termination resulting in
payments pursuant to Section 11) immediately

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following the termination of the Employee's employment will he for himself or on
behalf of any other person, partnership, company or corporation, directly or
indirectly, acquire any financial or beneficial interest in (except as provided
in the next sentence), provide consulting or other services to, be employed by,
or own, manage, operate or control any entity engaged in the telecommunications
business similar to the business engaged in by the Company or its subsidiaries
at the time of such termination of employment. Notwithstanding the preceding
sentence, the Employee will not be prohibited from owning less than one percent
(1%) of any publicly traded corporation, whether or not such corporation is in
competition with the Company.

         (b) Non-Solicitation. The Employee hereby covenants and agrees that, at
all times during the Term of Employment and for a period of six (6) months (such
period to be one (1) year in the case of a termination resulting in payments
pursuant to Section 11) immediately following the termination thereof, the
Employee will not directly or indirectly employ or seek to employ any person or
entity employed at that time by the Company or any of its subsidiaries, or
otherwise encourage or entice such person or entity to leave such employment.

Section 13.       Confidential Information

         The Employee agrees to keep secret and retain in the strictest
confidence all confidential matters which relate to the Company or any affiliate
of the Company, including, without limitation, customer lists, client lists,
trade secrets, pricing policies and other business affairs of the Company and
any affiliate of the Company learned by him from the Company or any such
affiliate or otherwise before or after the date of this Agreement, and not to
disclose any such confidential matter to anyone outside the Company, or any of
its affiliates, whether during or after his period of service with the Company,
except as may be required in the course of a legal or governmental proceeding.
Upon request by the Company, the Employee agrees to deliver promptly to the
Company upon termination of his services for the Company, or at any time
thereafter as the Company may request, all Company or affiliate memoranda,
notes, records, reports, manuals, drawings, designs, computer files in any media
and other documents (and all copies thereof) relating to the Company's or any
affiliate's business and all property of the Company or any affiliate associated
therewith, which he may then possess or have under his control.

Section 14.       Remedy

         (a) Should the Employee engage in or perform, either directly or
indirectly, any of the acts prohibited by Sections 12 or 13 hereof, it is agreed
that any and all severance payments and related benefits hereunder shall
immediately terminate and the Company will also be entitled to full injunctive
relief, to be issued by any competent court of equity, enjoining and restraining
the Employee and each and every other person, firm, organization, association,
or corporation concerned therein, from the continuance of such violative acts.
The foregoing remedies available to the Company will not be deemed to limit or
prevent the exercise by the Company of any or all further rights and remedies
which may be available to the Company hereunder or at law or in equity.

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         (b) The Employee acknowledges and agrees that the covenants contained
in this Agreement are fair and reasonable in light of the consideration paid
hereunder, and the invalidity or unenforceability of any particular provision,
or part of any provision, of this Agreement will not affect the other provisions
or parts hereof. If any provision hereof is determined to be invalid or
unenforceable and if any such provision will be so determined to be invalid or
unenforceable by reason of the duration or geographical scope of the covenants
contained therein, such duration or geographical scope, or both, will be reduced
to a duration or geographical scope solely to the extent necessary to cure such
invalidity.

Section 15.       Successors and Assigns

         This Agreement will be binding upon and inure to the benefit of the
Employee, his heirs, executors, administrators and beneficiaries, and the
Company and its successors and assigns.

Section 16.       Governing Law

         This Agreement will be governed by and construed and enforced in
accordance with the laws of the State of Connecticut, without reference to rules
relating to conflicts of law.

Section 17.       Entire Agreement

         This Agreement constitutes the full and complete understanding and
agreement of the parties and supersedes all prior understandings and agreements
as to employment of the Employee. This Agreement cannot be amended, changed,
modified or terminated without the written consent of the parties hereto.

Section 18.       Waiver of Breach

         The waiver of either party of a breach of any term of this Agreement
will not operate nor be construed as a waiver of any subsequent breach thereof.

Section 19.       Notices

         Any notice, report, request or other communication given under this
Agreement will be written and will be effective upon delivery when delivered
personally, by overnight courier or by fax. Unless otherwise notified by any of
the parties, notices will be sent to the parties as follows: (i) if to the
Employee, at the address set forth in the Company's records, and (ii) if to the
Company, to Cognitronics Corporation, 3 Corporate Drive, Danbury, CT 06810,
Attention: Chairman of the Compensation Committee of the Board of Directors.

Section 20.       Severability

         If any one or more of the provisions contained in this Agreement will
be invalid, illegal or unenforceable in any respect under any applicable law,
the validity, legality and enforceability of the remaining provisions contained
herein will not in any way be affected or impaired thereby.

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Section 21.       Counterparts

         This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original but all of which together will constitute
one and the same instrument. Delivery of signatures by facsimile or electronic
image shall be valid for all purposes hereunder.

                            [signature page follows]

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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

The Company:

COGNITRONICS CORPORATION

By: /s/ Michael G. Mitchell
    ------------------------------
Name:  Michael G. Mitchell
Title:  President and CEO

Employee:

/s/ John Steinkrauss
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John SteinkraussEXHIBIT 10.2

                            COGNITRONICS CORPORATION
                           RESTRICTED STOCK AGREEMENT

         This Agreement (this "Agreement") is made as of November 21, 2006 (the
"Date of Grant"), by and between Cognitronics Corporation, a New York
corporation (the "Company"), and John Steinkrauss (the "Grantee") as a material
inducement to Grantee becoming a senior executive of the Company. The parties
acknowledge that this Agreement is subject to the filing and approval of an
Additional Listing Application with the American Stock Exchange and that the
issuance of the Restricted Shares (as defined below) is subject to such filing
and approval ("AMEX Approval").

1. Grant of Restricted Stock. Subject to and upon the terms, conditions, and
restrictions set forth in this Agreement, the Company hereby grants to the
Grantee, Seventy-Five Thousand (75,000) shares of common stock of the Company.
These shares are referred to in this Agreement as "Restricted Shares" during the
applicable Restriction Period (as defined in paragraph 4(c) hereof). Acceptance
of the Restricted Shares shall be deemed to be agreement by the Grantee to the
terms and conditions set forth in this Agreement. Certificates representing the
Restricted Shares may not be sold or otherwise transferred and must be held by
the Grantee until the end of the applicable Restriction Period. Until such terms
and conditions have lapsed with respect to any Restricted Shares, the
certificate for such shares will, at the Company's option, remain in the
physical possession of the Company or bear a legend to the effect that they were
issued or transferred subject to, and may be sold or otherwise disposed of only
in accordance with, the terms of this Agreement.

2. Stockholder Status. Effective upon the later of Date of Grant or the date of
AMEX Approval, the Grantee will be a holder of record of the Restricted Shares
and will have all rights of a stockholder with respect to such shares (including
the right to vote such shares at any meeting of stockholders of the Company and
the right to receive all dividends paid with respect to such shares), subject
only to the terms and conditions imposed by this Agreement.

3. Effect of Changes in Capitalization. The number of Restricted Shares are
subject to adjustment for stock splits, stock dividends and the like. Any
additional or different shares or securities issued as the result of such an
adjustment will be held or delivered in accordance with this Agreement and will
be deemed to be included within the term "Restricted Shares".

4. Lapse of Restrictions.

         (a) The restrictions set forth in paragraph 5 below will lapse with
respect to 100% of the Restricted Shares on the earlier of: (i) the fourth
anniversary of the Date of Grant or (ii) the date the Company terminates the
employment of the Grantee without "Serious Cause" (as such term in defined in
the Employment Agreement of even date herewith between the Company and the
Grantee).

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         (b) Notwithstanding paragraph 4(a), the restrictions set forth in
paragraph 5 below will lapse on all of the Restricted Shares at the close of
business on the date on which a Change in Control of the Company (as defined
below in this paragraph 4(b)) shall occur. For purposes of this Agreement, a
"Change in Control" will occur (a) upon the public announcement that any
"person" (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")) (other than the Company,
any trustee or other fiduciary holding securities under an employee benefit plan
of the Company, or any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of the stock of the Company) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 30% or more of the combined voting power
of the Company's then outstanding securities, (b) if, during any period of two
consecutive years, individuals who at the beginning of such period constitute
the Company's Board of Directors (the "Board"), and any new director (other than
a director designated by a person that has entered into an agreement with the
Company to effect a transaction described in clause (a), (c) or (d) of this
sentence) whose election by the Board or nomination for election by the
Company's stockholders was approved by a vote of at least 2/3 of the directors
then still in office who either were directors at the beginning of the period or
whose election or nomination for election was previously so approved, cease for
any reason to constitute at least a majority thereof, (c) if the stockholders of
the Company approve a merger or consolidation of the Company with any other
corporation, other than (i) a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than 75% of the combined
voting power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation or (ii) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no "person" (as defined above) acquires more than
30% of the combined voting power of the Company's then outstanding securities,
or (d) if the stockholders of the Company approve a plan of complete liquidation
of the Company or an agreement for the sale or disposition by the Company of all
or substantially all of the Company's assets.

         (c) As soon as practicable after the restrictions with respect to any
installment of Restricted Shares lapse at the end of the period applicable to
such installment set forth in paragraphs 4(a) and 4(b) above (the "Restriction
Period"), the Company will deliver to the Grantee, or the Grantee's legal
representative in case of the Grantee's death, promptly after surrender of the
Grantee's certificate(s) for the Restricted Shares to the Treasurer of the
Company, the certificate or certificates for such shares free of any legend or
further restrictions together with, if applicable, a new certificate
representing any remaining Restricted Shares. It shall be a condition to the
obligation of the Company to issue or transfer shares of Common Stock upon the
lapse of restrictions that the Grantee (or any person entitled to act under this
paragraph 4(c)) pay to the Company, upon its demand, such amount as may be
requested by the Company for the purpose of satisfying its liability to withhold
federal, state or local income or other taxes by reason of such issuance or
transfer. If the amount requested is not paid, the Company may refuse to issue
or transfer shares of Common Stock.

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5. Restrictions. During the Restriction Period, neither the Restricted Shares
nor any right or privilege pertaining thereto may be sold, transferred,
assigned, pledged, hypothecated or otherwise disposed of or encumbered in any
way, by operation of law or otherwise, and shall not be subject to execution,
attachment or similar process. Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of or encumber the Restricted Shares or any
right or privilege pertaining thereto, otherwise than by will or by the laws of
descent and distribution, or upon the levy of any execution, attachment or
similar process thereupon, the Restricted Shares and all rights and privileges
given hereby shall immediately terminate and the Restricted Shares shall be
forfeited to the Company pursuant to paragraph 6 hereof.

6. Forfeiture.

         (a) All the Grantee's rights to, and interest in, the Restricted Shares
shall terminate and be forfeited to the Company without payment of consideration
if either (i) the Grantee's employment by the Company or any subsidiary thereof
terminates (or, if the Grantee is no longer employed by the Company but has
become a consultant to the Company under a post-employment consulting
arrangement, such consulting arrangement terminates) for any reason other than
the termination of the Grantee by the Company other than for Serious Cause;
provided, however, that the Grantee's employment will not be deemed to have
terminated for this purpose while the Grantee is on a leave of absence which has
been approved by the Company or while the Grantee is serving as a consultant to
the Company or any subsidiary thereof under a post-employment consulting
arrangement, or (ii) any action prohibited by paragraph 5 hereof is taken. For
purposes of this Agreement, a transfer of employment from the Company to a
subsidiary or from a subsidiary to the Company or between subsidiaries shall not
be deemed a termination of employment.

         (b) If Restricted Shares are forfeited for any of the reasons stated in
paragraph 6(a) hereof, such forfeiture shall be effective upon the occurrence of
the event giving rise to the forfeiture. The Grantee agrees to repay to the
Company all dividends, if any, paid after such event with respect to the
Restricted Shares which have been forfeited.

         (c) If at any time the Grantee forfeits any Restricted Shares pursuant
to this Agreement, the Grantee agrees to return the certificate or certificates
for such Restricted Shares to the Company duly endorsed in blank or accompanied
by a stock power duly executed in blank.

         (d) Determination as to whether an event has occurred resulting in the
forfeiture of, or lapse of restrictions on, Restricted Shares, in accordance
with this Agreement, shall be made by the Compensation Committee of the Board
(the "Committee"), and all determinations of the Committee shall be final and
conclusive.

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7. Company Right to Terminate Employment and Other Remedies. Nothing provided
herein shall be construed to affect in any way the right or power of the
Company, subject to the provisions of any other written agreement between the
Grantee and the Company relating to the subject matter, to terminate the
Grantee's employment as an employee of or a consultant to the Company at any
time for any reason with or without cause, nor to preclude the Company from
taking any action or enforcing any remedy available to it with respect to any
action or conduct on the Grantee's part.

8. Additional Documents.

         (a) It is the intention of the Company that this award of Restricted
Shares shall meet the requirements of, and result in the application of, the
rules prescribed by Section 83 of the Internal Revenue Code of 1986, as in
effect at the date hereof, and applicable regulations thereunder. Accordingly,
each and every provision shall be construed and interpreted in such manner as to
conform with such intention and the Company reserves the right to execute and to
require the Grantee to execute any further agreements or other instruments,
which may be effective as of the date of the award of the Restricted Shares
covered by this Agreement, including, but without limitation, any instrument
modifying or correcting any provision hereof, or any action taken hereunder or
contemporaneously herewith, and to take any other action, which may be effective
as of the date of the award of the Restricted Shares covered by this Agreement,
that, in the opinion of counsel for the Company, may be necessary or desirable
to carry out such intention.

         (b) If the Grantee fails, refuses or neglects to execute and deliver
any instrument or document or to take any action requested by the Company to be
executed or taken by the Grantee pursuant to the provisions of paragraph 8(a)
above for a period of 30 days after the date of such request, the Company may
require the Grantee, within ten 10 days after delivery to the Grantee of a
written demand by the Company, to forfeit all Restricted Shares then held by the
Grantee.

9. Severability. In the event that one or more of the provisions of this
Agreement is invalidated for any reason by a court of competent jurisdiction,
any provision so invalidated will be deemed to be separable from the other
provisions hereof, and the remaining provisions hereof will continue to be valid
and fully enforceable.

10. Interpretation. The Committee, as constituted from time to time, will,
except as expressly provided otherwise herein, have the right to determine any
questions or settle any ambiguities which arise in connection with this
Agreement and the Restricted Shares.

11. Successors and Assigns. Without limiting Section 4 hereof, the provisions of
this Agreement will inure to the benefit of, and be binding upon, the
successors, administrators, heirs, legal representatives and assigns of the
Grantee, and the successors and assigns of the Company.

12. Governing Law. The interpretation, performance and enforcement of this
Agreement will be governed by the laws of the State of New York, without giving
effect to the principles of conflict of laws thereof. Each party to this
Agreement hereby consents and

                                        4
<PAGE>

submits himself, herself or itself to the jurisdiction of the courts of the
State of New York for the purposes of any legal action or proceeding arising out
of this Agreement.

13. Notices. Any notice to the Company provided for herein will be in writing to
the Company and any notice to the Grantee will be addressed to the Grantee at
his or her address on file with the Company. Except as otherwise provided
herein, any written notice will be deemed to be duly given if and when delivered
personally or sent by courier service, registered mail or electronic means of
communication, and addressed as aforesaid. Any party may change the address to
which notices are to be given hereunder by notice to the other party as herein
specified (provided that for this purpose any mailed notice will be deemed given
on the third business day following deposit of the same in the mail).

                            [Signature page follows]

                                        5
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed on its behalf by its duly authorized officer and Grantee has also
executed this Agreement in duplicate, as of the day and year first above
written.

                                    COGNITRONICS CORPORATION

                                    By: /s/ Michael G. Mitchell
                                        -----------------------------
                                    Name: Michael G. Mitchell
                                    Title: President and Chief Executive Officer

The undersigned Grantee hereby acknowledges receipt of an executed original of
this Restricted Stock Agreement and accepts the Restricted Shares granted
hereunder, subject to the terms and conditions set forth herein.

                                    /s/ John Steinkrauss
                                    -------------------------
                                    John Steinkrauss

                                        6

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