EXHIBIT 10.1
AGREEMENT AND PLAN OF
REORGANIZATION
This Agreement and Plan of Reorganization (the
“Agreement”), dated as of the 23rd day of April, 2007,
by and between Interactive Games, Inc., a Nevada corporation
(“IGAM”), and Nuvo Solar Energy, Inc., a Colorado
corporation (“NUVO”), and the shareholders of NUVO
(“Shareholders”).
A. IGAM is a Nevada corporation organized on March
13, 1996. IGAM has authorized capital stock of 100,000,000 shares
of common stock, $.001 par value (“IGAM Common Stock”),
of which 62,022,482 shares are issued and outstanding as of the
date of this Agreement, on a fully diluted basis, and 5,000,000
shares of preferred stock, $.001 par value, of which no shares are
issued and outstanding as of the date of this Agreement.
B. NUVO is a privately held corporation organized
under the laws of the State of Colorado on May 11, 2004. NUVO has
authorized capital stock of 11,000,000 shares, $.001 par value per
share, 10,000,000 shares of which are authorized for the issuance
of common stock (“NUVO Common Stock”) and 1,000,000 of
which are authorized for the issuance of preferred stock. Of such
shares, there shall be up to 5,500,000 shares of NUVO Common Stock
and no shares of preferred stock issued and outstanding as of the
date of Closing (as defined in Article 2 hereof).
C. The respective Boards of Directors of IGAM and
NUVO have deemed it advisable and in the best interests of IGAM and
NUVO and their respective shareholders that NUVO be acquired by
IGAM, pursuant to the terms and conditions set forth in this
Agreement.
D. IGAM and NUVO propose to enter into this
Agreement which provides among other things, that all of the
outstanding shares of NUVO Common Stock be acquired by IGAM in
exchange for an aggregate of 1,000,000 shares of IGAM Series A
Convertible Preferred Stock (the “IGAM Preferred
Stock”), the aggregate of which shall be convertible into a
number of shares of IGAM Common Stock constituting approximately 66
2/3 % of the issued and outstanding number of shares of IGAM Common
Stock immediately following the Effective Time (as defined in
Section 2.01), on a fully diluted basis.
E. The parties desire the transaction to qualify
as a tax-free reorganization under Section 368 (a)(1)(B) of
the Internal Revenue Code of 1986, as amended.
NOW, THEREFORE, the parties hereto agree as
follows:
ARTICLE 1
THE ACQUISITION
1.01 At the Effective Time (as defined in Article
2), subject to the terms and conditions herein, each share of NUVO
Common Stock issued and outstanding immediately prior to the
Effective Time (other than Dissenting Shares, as defined in Section
1.04) shall be acquired by IGAM in exchange for a fraction of a
fully paid and nonassessable share of IGAM Preferred Stock equal to
(i) 1,000,000, divided by (ii) the number of issued and outstanding
shares of NUVO Common Stock, on a fully diluted basis, immediately
prior to the Effective Time (other than Dissenting Shares) (the
“Exchange Ratio”). Collectively, the shares of IGAM
Preferred Stock issued to the Shareholders shall be referred to
herein as the “IGAM Shares”, and the exchange of all
shares of NUVO Common Stock for IGAM Shares shall constitute the
“Exchange”. IGAM Shares shall be issued as set forth in
Exhibit A to this Agreement.
1.02 Each share of IGAM Preferred Stock shall, upon
receipt of Shareholder Approval (as defined in Section 9.01),
automatically convert into the number of shares of IGAM Common
Stock equal to a fraction, (i) the numerator of which is equal to
the product of (A) the aggregate number of shares of IGAM Common
Stock issued and outstanding immediately prior to the Effective
Time, on a fully diluted basis, multiplied by (B) two (2), and (ii)
the denominator of which shall be 1,000,000 (the “Conversion
Ratio”) , rounded to the nearest whole share
; provided that , for
purposes of determining the number of fully diluted shares of IGAM
Common Stock issued and outstanding immediately prior to the
Effective Time, the parties agree that the number of shares of IGAM
Common Stock shall include the number of shares IGAM Common Stock
into which the Convertible Debt of IGAM (as defined in Section
8.01(i)) is convertible, as determined assuming a conversion price
equal to 75% of the lowest closing price of the IGAM Common Stock
(as reported by Bloomberg, LP) over the 20 trading days immediately
prior to the Effective Date (as defined in Article 2). The number
of shares of IGAM Common Stock issuable upon conversion of the IGAM
Shares shall be identified on Exhibit A to this
Agreement.
1.03 As of the Effective Time, each outstanding
stock certificate that immediately prior to the Effective Time
represented shares of NUVO Common Stock shall be deemed for all
purposes to evidence ownership and to represent the number of
shares of IGAM Preferred Stock for which such shares of NUVO Common
Stock have been exchanged pursuant to Section 1.01. The record
holder of each outstanding certificate representing shares of NUVO
Common Stock shall, after the Effective Time, be entitled to vote
the shares of IGAM Preferred Stock (on an as-converted basis
assuming the conversion of all shares of IGAM Preferred Stock into
shares of IGAM Common Stock) for which such shares of NUVO Common
Stock have been exchanged on any matters on which the holders of
IGAM Common Stock are entitled to vote. After the Effective Time,
the holders of certificates evidencing outstanding shares of NUVO
Common Stock immediately prior to the Effective Time shall deliver
such certificates of NUVO Common Stock, duly endorsed so as to make
IGAM the sole holder thereof, free and clear of all claims, and
encumbrances and upon receipt of such certificates,
IGAM shall deliver a transmittal letter
directed to the transfer agent of IGAM directing the issuance of
the IGAM Shares to the Shareholders as set forth on Exhibit
A of this Agreement. Any shares of IGAM Preferred Stock
(and IGAM Common Stock issued upon conversion thereof) issued
pursuant to this Agreement will not be transferable except (a)
pursuant to an effective registration statement under the
Securities Act or (b) upon receipt by IGAM of a written opinion of
counsel for the holder reasonably satisfactory to IGAM to the
effect that the proposed transfer is exempt from the registration
requirements of the Securities Act of 1933, as amended, and
relevant state securities laws. Restrictive legends shall be placed
on all certificates representing IGAM Common stock issued pursuant
to this Agreement as set forth in Section 12.02.
In the event any certificate for NUVO Common
Stock has been lost, stolen or destroyed, IGAM shall issue and pay
in exchange for such lost, stolen or destroyed certificate,
promptly following its receipt of an affidavit of that fact by the
holder thereof, such shares of IGAM Common Stock as may be required
pursuant to this Agreement; provided that, such holder shall be
required to provide to IGAM an executed indemnification agreement,
in a form reasonably acceptable to IGAM, whereby such holder
indemnifies IGAM against any loss or liability relating to
IGAM’s issuance of certificates pursuant to this
paragraph.
1.04 Shares of NUVO common stock held by the
stockholders of NUVO who have properly exercised and preserved
appraisal rights with respect to those shares in accordance with
Title 7, Article 113 of the Colorado Statutes (the
“Dissenting Shares”) shall not be exchanged for or
represent a right to receive shares of IGAM Preferred Stock
pursuant to Section 1.01 above, but the holders thereof shall be
entitled only to such rights as are granted by Title 7, Article 113
of the Colorado Statutes. Each holder of Dissenting Shares who
becomes entitled to payment for such shares pursuant to Title 7,
Article 113 shall receive payment therefor from NUVO in accordance
with such laws; provided that, if any such holder of Dissenting
Shares shall have effectively withdrawn or lost such holder’s
demand for appraisal and payment for such shares, such
holder
shall forfeit the right of appraisal of such
share and such Dissenting Shares shall be exchanged for shares of
IGAM Preferred Stock in accordance with the terms of Section
1.01.
1.05 Following the Effective Time, NUVO will be a
wholly owned subsidiary of IGAM.
ARTICLE 2
THE CLOSING
Subject to the terms and conditions herein,
including the satisfaction of the conditions to closing set forth
in Articles 5 and 8 of this Agreement, the consummation of the
transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Maslon
Edelman Borman & Brand, LLP on or before July 31, 2007 (the
“Closing Date”) or at such other place or date and time
as may be agreed to in writing by the parties hereto at the
earliest practicable time after satisfaction or waiver of the
conditions hereof, but in no event later than fifteen (15) days
after such conditions have been satisfied or waived. On the Closing
Date, or as soon thereafter as practicable, to effect the Exchange,
the parties hereto will cause the Articles of Exchange to be filed
with the Nevada Secretary of State and a Statement of Share
Exchange with the Colorado Secretary of State in accordance with
the laws of each such State. The Exchange shall be effective at
such time that the Articles of Exchange and Statement of Share
Exchange are filed with the Nevada Secretary of State and Colorado
Secretary of State, as applicable, or such later time that the
parties specify in such documents on file with each such State (the
“Effective Time” or “Effective
Date”).
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF
IGAM
IGAM hereby represents and warrants to NUVO as
follows, as of the date of this Agreement and as of Closing (except
as expressly limited):
3.01 Organization, Standing and Power. IGAM is a
corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada with all requisite corporate
power to own or lease its properties and carry on its businesses as
are now being conducted.
3.02 Qualification. IGAM is duly qualified and is
licensed as a foreign corporation authorized to do business in each
jurisdiction wherein it conducts business operations. Such
jurisdictions, which are the only jurisdictions in which IGAM is
duly qualified and licensed as a foreign corporation, are shown in
Schedule 3.02.
3.03 Capitalization of IGAM. The authorized capital
stock of IGAM consists of 100,000,000 shares of common stock, of
which 52,782,100 shares are issued and outstanding as of the date
of this Agreement, and 5,000,000 shares of preferred stock, of
which no shares are issued and outstanding immediately prior to the
Effective Time. All shares of common stock that are issued as of
such time are duly authorized, validly issued and fully paid and
nonassessable, and were issued in accordance with the registration
or qualification provisions of the Securities Act of 1933, as
amended (the “Act”) and any relevant state securities
laws or pursuant to valid exemptions therefrom. There are no
preemptive rights with respect to the IGAM Common Stock and the
shares of IGAM Common Stock are free from restrictions on transfer
(except as required by law) or any options, liens, pledges,
security interests, encumbrances or charges of any kind. IGAM has
no other equity securities or securities containing equity features
authorized, issued or outstanding. Except as identified on Schedule
3.03 hereto, there are no agreements or other rights or
arrangements existing which provide for the sale or issuance of
capital stock by IGAM, and there are no rights, subscriptions,
warrants, options, conversion rights or other agreements of any
kind outstanding to purchase or otherwise acquire from IGAM any
shares of capital stock or other securities of IGAM. Except as set
forth on Schedule 3.03, there are
no agreements or other obligations (contingent
or otherwise) which may require IGAM to repurchase or otherwise
acquire any shares of its capital stock. IGAM does not own, and is
not a party to a contract to acquire, any equity securities or
other securities of any entity or a direct or indirect equity or
ownership interest in any other entity. IGAM is not a party to, and
there do not exist any voting trusts, proxies, or other contracts
with respect to the voting of shares of capital stock of
IGAM.
3.04 Authority. The execution and delivery of this
Agreement and consummation of the transactions contemplated herein
have been duly authorized by all necessary corporate actions,
including but not limited to duly and validly authorized action and
approval by the Board of Directors, on the part of IGAM. This
Agreement constitutes the valid and binding obligation of IGAM
enforceable against it in accordance with its terms, subject to the
principles of equity applicable to the availability of the remedy
of specific performance. This Agreement has been duly executed by
IGAM and the execution and delivery of this Agreement and the
consummation of the transactions contemplated by this Agreement
shall not result in any breach of any terms or provisions of
IGAM’s Articles of Incorporation or Bylaws or of any other
agreement, court order or instrument to which IGAM is a party or
bound by.
3.05 Absence of Undisclosed Liabilities. IGAM has no
material liabilities of any nature, whether fixed, absolute,
contingent or accrued, which were not reflected on the most
recently provided financial statements of IGAM (as required
pursuant to Section 5.01(a) hereto) or otherwise disclosed in
Schedule 3.05 hereto. Other than the Convertible Debt (as defined
in Section 8.01(i)) and NUVO Advances (as defined in Section
8.02(i)), as of the Effective Time, IGAM shall have not have assets
or liabilities in excess of $5,000 other than those resulting from
the acquisition of NUVO.
3.06 Absence of Changes. Since July 31, 2006, there
has not been any material adverse change in the condition
(financial or otherwise), assets, liabilities, earnings or business
of IGAM, except for changes resulting from completion of those
transactions expressly contemplated herein.
3.07 Tax Matters. All taxes and other assessments
and levies which IGAM is required by law to withhold or to collect
have been duly withheld and collected, and have been paid over to
the proper government authorities or are held by IGAM in separate
bank accounts for such payment or are represented by depository
receipts, and all such withholdings and collections and all other
payments due in connection therewith (including, without
limitation, employment taxes, both the employee’s and
employer’s share) have been paid over to the government or
placed in a separate and segregated bank account for such purpose.
There are no known deficiencies in income taxes for any periods and
all returns, declarations, reports, estimates and statements
required have been filed. There are no liens or taxes upon any
assets of IGAM, except taxes not yet due. Further, the
representations and warranties as to absence of undisclosed
liabilities contained in Section 3.05 includes any and all tax
liabilities of whatsoever kind or nature (including, without
limitation, all federal, state, local and foreign income, profit,
franchise, sales, use and property taxes) due or to become due,
incurred in respect of or measured by IGAM income or business prior
to the Effective Date.
3.08 Title to Assets. Except for liens set forth on
Schedule 3.08 hereto, IGAM is the sole unconditional owner of, with
good and marketable title to, all assets listed in the schedules as
owned by it and all other property and assets are free and clear of
all mortgages, liens, pledges, charges or encumbrances of any
nature whatsoever.
3.09 Books and Records. The books of account, minute
books, stock record books, and other records of IGAM, complete
copies of which have been made available to NUVO, have been
properly kept and contain no inaccuracies except for inaccuracies
that would not, individually or in the aggregate, reasonably be
expected to have a material effect on IGAM or NUVO.
3.10 Agreements in Force and Effect. Except as set
forth in Schedule 3.10, all material contracts, agreements, plans,
promissory notes, mortgages, leases, policies, licenses, franchises
or similar instruments to which IGAM is a party are valid and in
full force and effect, and IGAM has not breached any material
provision of, and is not in default in any material respect under
the terms of, any such contract, agreement, plan, promissory note,
mortgage, lease, policy, license, franchise or similar instrument
which breach or default would have a material adverse effect upon
the business, operations or financial condition of IGAM.
3.11 Legal Proceedings, Etc. Except as set forth on
Schedule 3.11 hereto, there are no civil, criminal,
administrative, arbitration or other such proceedings or
investigations pending or, to the knowledge of either IGAM or the
shareholders thereof, threatened, in which, individually or in the
aggregate, an adverse determination would materially and adversely
affect the assets, properties, business or income of IGAM. IGAM has
substantially complied with, and is not in default in any material
respect under, any laws, ordinances, requirements, regulations or
orders applicable to its businesses.
3.12 Governmental Regulation. To the knowledge of
IGAM and except as set forth on Schedule 3.12, IGAM is not in
violation of or in default with respect to any applicable law or
any applicable rule, regulation, order, writ or decree of any court
or any governmental commission, board, bureau, agency or
instrumentality, or delinquent with respect to any report required
to be filed with any governmental commission, board, bureau, agency
or instrumentality which violation or default could have a material
adverse effect upon the business, operations or financial condition
of IGAM.
3.13 Brokers and Finders. IGAM has not agreed to pay
any fees or commissions to any party relating to this Agreement and
the transactions contemplated hereby.
3.14 Accuracy of Information. No representation or
warranty by IGAM contained in this Agreement and no statement
contained in any certificate or other instrument delivered or to be
delivered to NUVO pursuant hereto or in connection with the
transactions contemplated hereby (including without limitation all
Schedules and exhibits hereto) contains or will contain any untrue
statement of material fact or omits or will omit to state any
material fact necessary in order to make the statements contained
herein or therein not misleading.
3.15 Subsidiaries. Except as listed on
Schedule 3.15, IGAM does not have any subsidiaries or own
capital stock of any other corporation.
3.16 Consents. As of the Effective Time, with the
except of consent expressly required pursuant to the terms hereof,
no consent or approval of, or registration, qualification or filing
with, any governmental authority or other person is required to be
obtained or accomplished by IGAM or any shareholder thereof in
connection with the consummation of the transactions contemplated
hereby.
3.17 Employees. Except as listed on Schedule 3.17,
(i) no IGAM employee or group of employees has any plans to
terminate his, her or its employment; (ii) IGAM has no material
labor relations problem pending and its labor relations are
satisfactory; (iii) there are no workers’ compensation claims
pending against IGAM nor is IGAM aware of any facts that would give
rise to such a claim; and (iv) no employee of IGAM is subject to
any secrecy or noncompetition agreement or any other agreement or
restriction of any kind that would impede in any way the ability of
such employee to carry out fully all activities of such employee in
furtherance of the business of IGAM or NUVO.
3.18 Environmental Matters. None of the operations
of IGAM involves the generation, transportation, treatment, storage
or disposal of hazardous waste, as defined under 40 C.F.R. Parts
260-270 or any state, local or foreign equivalent.
3.19 Improper Payments. Neither IGAM, nor any person
acting on behalf of IGAM has made any payment or otherwise
transmitted anything of value, directly or indirectly, to (a) any
official or any government or agency or political subdivision
thereof for the purpose of influencing any decision affecting the
business of IGAM (b) any customer, supplier or competitor of IGAM
or employee of such customer, supplier or competitor, for the
purpose of obtaining, retaining or directing business for IGAM or
(c) any political party or any candidate for elective political
office nor has any fund or other asset of IGAM been maintained that
was not fully and accurately recorded on the books of account of
IGAM.
3.20 Copies of Documents. IGAM has made available
for inspection and copying by NUVO and its duly authorized
representatives, and will continue to do so at all times, true and
correct copies of all documents which it has filed with the
Securities and Exchange Commission (the “SEC”) and all
other governmental agencies which are material to the terms and
conditions contained in this Agreement. Furthermore, all filings by
IGAM with the SEC, and all other governmental agencies, including
but not limited to the Internal Revenue Service, have contained
information which is true and correct, to the best knowledge of the
Board of Directors of IGAM, in all material respects and did not
contain any untrue statement of a material fact or omit to state
any material fact necessary to make the statements made therein not
misleading or which could have any material adverse effect upon the
financial condition or operations of IGAM or adversely affect the
objectives of this Agreement with respect to NUVO including, but
not limited to, the issuance and subsequent trading of the shares
of IGAM Common Stock to be received hereby, subject to compliance
by the shareholders of NUVO with applicable law. IGAM has made all
necessary filings with the SEC and other governmental
agencies.
3.21 Valid Issuance of Securities. The IGAM Shares,
and the shares of IGAM Common Stock issuable upon conversion
thereof, when issued, sold and delivered in accordance with the
terms of this Agreement for the consideration expressed herein,
will be duly and validly issued, fully paid and non-assessable, and
will be free of restrictions on transfer other than restrictions on
transfer under this Agreement and under applicable state and
federal securities laws.
3.22 Directors, Officers and Controlling
Shareholders. No director, officer or controlling shareholder of
IGAM has been subject to a criminal proceeding, bankruptcy, SEC or
NASD censure in the last five years nor is any such individual
under investigation for any of the above.
3.23 Related Party Transactions. Except as otherwise
disclosed in its public filings with the SEC, no employee, officer
or director of IGAM or member of his or her immediate family is
indebted to IGAM, nor is IGAM indebted (or committed to make loans
or extend or guarantee credit) to any of them. No member of the
immediate family of any officer or director of IGAM is directly or
indirectly interested in any material contract with IGAM. No
employee, officer or director of IGAM, or member of the immediately
family of any such employee, officer or director, has any direct or
indirect interest in a competitor, supplier or customer of IGAM or
other party with which IGAM transacts business.
3.24 Tax-Free Reorganization. Neither IGAM nor any
of its officers and directors has through the date of this
Agreement taken or agreed to take any action that would prevent the
Exchange contemplated by this Agreement from qualifying as a
reorganization under Section 368(a) of the Code.
3.25 Full Disclosure. The representations and
warranties of IGAM contained in this Agreement (and in any
schedule, exhibit, certificate or other instrument to be delivered
under this Agreement) are true and correct in all material
respects, and such representations and warranties do not omit any
material fact necessary to make the statements contained therein,
in light of the circumstances under which they were made, not
misleading. There is no fact of which IGAM has knowledge that has
not been disclosed to NUVO pursuant to this Agreement, including
the schedules hereto, all taken together as a whole, which has had
or could
reasonably be expected to have a material
adverse effect on IGAM or NUVO or materially adversely affect the
ability of IGAM to consummate in a timely manner the transactions
contemplated hereby.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES
OF
NUVO SOLAR ENERGY, INC.
NUVO hereby represents and warrants to IGAM as
follows, as of the date of this Agreement and as of Closing (except
as expressly limited):
4.01 Organization, Standing and Power. NUVO is a
corporation duly organized, validly existing and in good standing
under the laws of the State of Colorado with all requisite
corporate power to own or lease its properties and carry on its
business as is now being conducted.
4.02 Qualification. NUVO is duly qualified and
licensed as a foreign corporation authorized to do business in each
jurisdiction wherein it conducts business operations. Such
jurisdictions, which are the only jurisdictions in which NUVO is
duly qualified and licensed as a foreign corporation, is shown in
Schedule 4.02.
4.03 Capitalization of NUVO. The authorized capital
stock of NUVO consists of 10,000,000 shares of Common Stock, par
value $.001 per share, of which, as of Closing, up to 5,500,000
shares shall be issued and outstanding, and 1,000,000 shares of
preferred stock, par value $.001 per share, of which no shares
shall be issued and outstanding. All shares of common stock that
are issued as of such date are duly authorized, validly issued and
fully paid and nonassessable. There are no preemptive rights with
respect to the NUVO Common Stock and the shares of NUVO Common
Stock are free from restrictions on transfer or any options, liens,
pledges, security interests, encumbrances or charges of any kind.
Except as identified on Schedule 4.03, (i) NUVO has no other equity
securities or securities containing equity features authorized,
issued or outstanding, (ii) there are no agreements or other rights
or arrangements existing which provide for the sale or issuance of
capital stock by NUVO, and (iii) there are no rights,
subscriptions, warrants, options, conversion rights or other
agreements of any kind outstanding to purchase or otherwise acquire
from NUVO any shares of capital stock or other securities of NUVO.
There are no agreements or other obligations (contingent or
otherwise) which may require NUVO to repurchase or otherwise
acquire any shares of its capital stock. NUVO does not own, and is
not a party to a contract to acquire, any equity securities or
other securities of any entity or direct or indirect equity or
ownership interest in any other entity. NUVO is not a party to, and
there do not exist any voting trusts, proxies, or other contracts
with respect to the voting of shares of capital stock of
NUVO.
4.04 Authority. The execution and delivery of this
Agreement and consummation of the transactions contemplated herein
have been duly authorized by all necessary corporate action of the
Board of Directors of NUVO and, except for the approval of the
shareholders of NUVO, as applicable, this Agreement constitutes the
valid and binding obligation of NUVO, enforceable against it in
accordance with its terms, subject to the principles of equity
applicable to the availability of the remedy of specific
performance. This Agreement has been duly executed by NUVO and the
execution and delivery of this Agreement and the consummation of
the transactions contemplated by this Agreement shall not result in
any breach of any terms or provisions of NUVO’s Articles of
Incorporation or Bylaws or of any other agreement, court order or
instrument to which NUVO is a party or bound.
4.05 Absence of Undisclosed Liabilities. NUVO has no
material liabilities of any nature, whether fixed, absolute,
contingent or accrued, which were not reflected on the most
recently provided financial
statements of NUVO provided pursuant to Section
5.02(a) hereto or otherwise disclosed in Schedule 4.05
hereto.
4.06 Absence of Changes. Since inception, there has
not been any material adverse change in the condition (financial or
otherwise), assets, liabilities, earnings or business of NUVO
except for changes pursuant to the terms of this Agreement and the
transactions contemplated hereby.
4.07 Tax Matters. All taxes and other assessments
and levies which NUVO is required by law to withhold or to collect
have been duly withheld and collected, and have been paid over to
the proper government authorities or are held by NUVO in separate
bank accounts for such payment or are represented by depository
receipts, and all such withholdings and collections and all other
payments due in connection therewith (including, without
limitation, employment taxes, both the employee’s and
employer’s share) have been paid over to the government or
placed in a separate and segregated bank account for such purpose.
There are no known deficiencies in income taxes for any periods and
all returns, declarations, reports, estimates and statements
required have been timely filed. There are no liens or taxes upon
any assets of NUVO, except taxes not yet due. Further, the
representations and warranties as to absence of undisclosed
liabilities contained in Section 4.05 includes any and all tax
liabilities of whatsoever kind or nature (including, without
limitation, all federal, state, local and foreign income, profit,
franchise, sales, use and property taxes) due or to become due,
incurred in respect of or measured by NUVO income or business prior
to the Effective Time.
4.08 Title to Assets. Except for liens set forth on
Schedule 4.08, NUVO is the sole and unconditional owner of,
with good and marketable title to, all the assets and patents
listed in the schedules as owned by them and all other property and
assets are free and clear of all mortgages, liens, pledges, charges
or encumbrances of any nature whatsoever.
4.09 Books and Records. The books of account, minute
books, stock record books, and other records of NUVO, complete
copies of which have been made available to IGAM, have been
properly kept and contain no inaccuracies except for inaccuracies
that would not, individually or in the aggregate, reasonably be
expected to have a material effect on IGAM or NUVO.
4.10 Agreements in Force and Effect. Except as set
forth on Schedule 4.10, all material contracts, agreements, plans,
promissory notes, mortgages, leases, policies, licenses, franchises
or similar instruments to which NUVO is a party are valid and in
full force and effect on the date hereof, and NUVO has not breached
any material provision of, and is not in default in any material
respect under the terms of, any such contract, agreement, plan,
promissory note, mortgage, lease, policy, license, franchise or
similar instrument which breach or default would have a material
adverse effect upon the business, operations or financial condition
of NUVO.
4.11 Legal Proceedings, Etc. There are no civil,
criminal, administrative, arbitration or other such proceedings or
investigations pending or, to the knowledge of NUVO, threatened, in
which, individually or in the aggregate, an adverse determination
would materially and adversely affect the assets, properties,
business or income of NUVO. NUVO has substantially complied with,
and is not in default in any material respect under, any laws,
ordinances, requirements, regulations or orders applicable to its
businesses.
4.12 Governmental Regulation. To the knowledge of
NUVO, NUVO is not in violation of or in default with respect to any
applicable law or any applicable rule, regulation, order, writ or
decree of any court or any governmental commission, board, bureau,
agency or instrumentality, or delinquent with respect to any report
required to be filed with any governmental commission, board,
bureau, agency or instrumentality which violation or default could
have a material adverse effect upon the business, operations or
financial condition of NUVO.
4.13 Broker and Finders. NUVO has not agreed to pay
any fees or commissions to any party relating to this Agreement and
the transactions contemplated hereby.
4.14 Accuracy of Information. No representation or
warranty by NUVO contained in this Agreement and no statement
contained in any certificate or other instrument delivered or to be
delivered to IGAM pursuant hereto or in connection with the
transactions contemplated hereby (including without limitation all
Schedules and Exhibits hereto) contains or will contain any untrue
statement of a material fact or omits or will omit to state any
material fact necessary in order to make the statements
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