AGREEMENT FOR SHARE EXCHANGE
AGREEMENT
FOR SHARE EXCHANGE
THIS
AGREEMENT FOR SHARE EXCHANGE (this “Agreement”) is dated as of December 31,
2005, by and among Infolife, Inc., a Texas corporation (“Infolife”), Media
Challenge Holdings Limited., a British Virgin Islands corporation (“Media
Challenge”), and the Shareholders of Media Challenge who execute this Agreement
(collectively the “Shareholders”).
RECITALS:
Infolife
and Media Challenge desire to complete a share exchange transaction pursuant
to
which Infolife shall acquire all of the issued and outstanding common stock
of
Media Challenge, solely in exchange for a convertible promissory note in favor
of Media Challenge in the face amount of $441,600, convertible into 22,080,000
shares of Infolife common stock (subject to effecting a one for 10 reverse
stock
split of the common stock of Infolife); and
THE
Board
of Directors of Infolife and the Board of Directors of Media Challenge have
each
approved the proposed transaction, contingent upon satisfaction prior to closing
of all of the terms and conditions of this Agreement; and
THE
SHAREHOLDERS are the owners of all of the issued and outstanding common stock
of
Media Challenge; and
THE
PARTIES desire to make certain representations, warranties and agreements in
connection with completion of the proposed share exchange
transaction.
NOW,
THEREFORE, in consideration of the foregoing recitals, which shall be considered
an integral part of this Agreement, and the covenants, conditions,
representations and warranties hereinafter set forth, the parties hereby agree
as follows:
ARTICLE
I
THE
EXCHANGE
1.1 The
Exchange.
At the
Closing (as hereinafter defined), Infolife shall acquire all of the issued
and
outstanding common stock of Media Challenge from the Shareholders. Consideration
to be issued by Infolife shall be a convertible promissory note (the
“Convertible Note”) with a face amount of $441,600, convertible into 22,080,000
shares of Infolife common stock (subject to effecting a one for 10 reverse
stock
split of the common stock of Infolife) in exchange for 100% of the issued and
outstanding common stock of Media Challenge. The shares to be issued upon
conversion of the Convertible Note are herein referred to as the “Exchange
Shares”. A copy of the Convertible Note is attached hereto as Exhibit A. The
Exchange shall take place upon the terms and conditions provided for in this
Agreement and in accordance with applicable law. For Federal income tax
purposes, it is intended that the Exchange shall constitute a tax-free
reorganization within the meaning of Section 368(a)(1)(B) of the Internal
Revenue Code of 1986, as amended (the “Code”).
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1.2 Closing
and Effective Time.
Subject
to the provisions of this Agreement, the parties shall hold a closing (the
"Closing") on (i) the first business day on which the last of the conditions
set
forth in Article V to be fulfilled prior to the Closing is fulfilled or waived
or (ii) such other date as the parties hereto may agree (the "Closing Date"),
at
such time and place as the parties hereto may agree. Such date shall be the
date
of Exchange (the "Effective Time").
ARTICLE
II
REPRESENTATIONS
AND WARRANTIES
2.1 Representations
and Warranties of Infolife.
Infolife
represents and warrants to Media Challenge and the Shareholders as
follows:
(a) Organization,
Standing and Power.
Infolife is a corporation duly organized, validly existing and in good standing
under the laws of the State of Texas, has all requisite power and authority
to
own, lease and operate its properties and to carry on its business as now being
conducted, and is duly qualified and in good standing to do business in each
jurisdiction in which the nature of its business or the ownership or leasing
of
its properties makes such qualification necessary.
(b) Capital
Structure.
As of
the date of execution of this Agreement, the authorized capital stock of
Infolife consists of 50,000,000 shares of Common Stock with a par value of
USD
0.001 per share, of which approximately 47,780,000 shares are currently issued
and outstanding. The Exchange Shares to be issued pursuant to this Agreement
and
upon conversion of the Convertible Note shall be, when issued pursuant to the
terms of the resolution of the Board of Directors of Infolife approving such
issuance, validly issued, fully paid and nonassessable and not subject to
preemptive rights. Except as otherwise specified herein, as of the date of
execution of this Agreement, there are no other options, warrants, calls,
agreements or other rights to purchase or otherwise acquire from Infolife at
any
time, or upon the happening of any stated event, any shares of the capital
stock
of Infolife whether or not presently issued or outstanding.
(c) Certificate
of Incorporation, Bylaws, and Minute Books.
The
copies of the Articles of Incorporation and of the Bylaws of Infolife which
have
been delivered to Media Challenge are true, correct and complete copies thereof.
The minute book of Infolife, which has been made available for inspection,
contains accurate minutes of all meetings and accurate consents in lieu of
meetings of the Board of Directors (and any committee thereof) and of the
shareholders of Infolife since the date of incorporation and accurately reflects
all transactions referred to in such minutes and consents in lieu of
meetings.
(d) Authority.
Infolife has all requisite power and authority to enter into this Agreement
and
to consummate the transactions contemplated hereby. The execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by the Board of Directors of Infolife. No other
corporate or shareholder proceedings on the part of Infolife are necessary
to
authorize the Exchange, or the other transactions contemplated
hereby.
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(e) Conflict
with Other Agreements; Approvals.
The
execution and delivery of this Agreement does not, and the consummation of
the
transactions contemplated hereby will not result in any violation of, or default
(with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of any obligation or the
loss
of a material benefit under, or the creation of a lien, pledge, security
interest or other encumbrance on assets (any such conflict, violation, default,
right of termination, cancellation or acceleration, loss or creation, a
"violation") pursuant to any provision of the Articles of Incorporation or
Bylaws or any organizational document of Infolife or, result in any violation
of
any loan or credit agreement, note, mortgage, indenture, lease, benefit plan
or
other agreement, obligation, instrument, permit, concession, franchise, license,
judgment, order, decree, statute, law, ordinance, rule or regulation applicable
to Infolife which violation would have a material adverse effect on Infolife
taken as a whole. No consent, approval, order or authorization of, or
registration, declaration or filing with, any court, administrative agency
or
commission or other governmental authority or instrumentality, domestic or
foreign (a "Governmental Entity") is required by or with respect to Infolife
in
connection with the execution and delivery of this Agreement by Infolife or
the
consummation by Infolife of the transactions contemplated hereby.
(f) Books
and Records.
Infolife has made and will make available for inspection by Tagalder upon
reasonable request all the books of Infolife relating to the business of
Infolife. Such books of Infolife have been maintained in the ordinary course
of
business. All documents furnished or caused to be furnished to Media Challenge
by Infolife are true and correct copies, and there are no amendments or
modifications thereto except as set forth in such documents.
(g) Compliance
with Laws.
Infolife
is and has been in compliance in all material respects with all laws,
regulations, rules, orders, judgments, decrees and other requirements and
policies imposed by any Governmental Entity applicable to it, its properties
or
the operation of its businesses.
(h) SEC
Filings. Infolife
has filed all periodic reports (if any) required to be filed with the Securities
and Exchange Commission and as of the date hereof, is current in its filing
obligations.
(i) Financial
Statements and Tax Returns.
Copies
of Infolife’s audited financial statements for the fiscal year ended December
31, 2004, its unaudited financial statements for the periods ended March 31,
2005, June 30, 2005 and September 30, 2005 and of its tax return for the fiscal
year 2004 have been delivered to Media Challenge.
(j) Litigation.
There
is no suit, action or proceeding pending, or, to the knowledge of Infolife,
threatened against or affecting Infolife which is reasonably likely to have
a
material adverse effect on Infolife, nor is there any judgment, decree,
injunction, rule or order of any Governmental Entity or arbitrator outstanding
against Infolife having, or which, insofar as reasonably can be foreseen, in
the
future could have, any such effect.
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(k) Tax
Returns.
Infolife has duly filed any tax reports and returns required to be filed by
it
and has fully paid all taxes and other charges claimed to be due from it by
any
federal, state or local taxing authorities. There are not now any pending
questions relating to, or claims asserted for, taxes or assessments asserted
upon Infolife.
2.2 Representations
and Warranties of Media Challenge.
Media
Challenge represents and warrants to Infolife as follows:
(a) Organization,
Standing, Power and Business.
Media
Challenge is a corporation duly organized, validly existing and in good standing
under the laws of the British Virgin Islands, has all requisite power and
authority to own, lease and operate its properties and to carry on its business
as now being conducted, and is duly qualified and in good standing to do
business in each jurisdiction in which the nature of its business or the
ownership or leasing of its properties makes such qualification necessary.
Media
Challenge, through a licensing agreement, is in the business of selling magazine
and advertising space and operates the publication of “Sale & Marketing
Magazine” in the People’s Republic of China (the “PRC”).
(b) Capital
Structure.
The
authorized capital stock of Media Challenge consists of 121,000 shares of Common
Stock with a par value of US$1.00 per share. As of the date of execution of
this
Agreement, it has a total of 121,000 shares of common stock issued and
outstanding. All issued and outstanding shares of Media Challenge stock are
validly issued, fully paid and nonassessable and not subject to preemptive
rights or other restrictions on transfer. All of the issued and outstanding
shares of Media Challenge were issued in compliance with all applicable
securities laws. Except as otherwise specified herein, there are no options,
warrants, calls, agreements or other rights to purchase or otherwise acquire
from Media Challenge at any time, or upon the happening of any stated event,
any
shares of the capital stock of Media Challenge.
(c) Certificate
of Incorporation, Bylaws and Minute Books.
The
copies of the Certificate of Incorporation and of the other corporate documents
of Media Challenge that have been delivered to Infolife are true, correct and
complete copies thereof. The minute books of Media Challenge which have been
made available for inspection contain accurate minutes of all meetings and
accurate consents in lieu of meetings of the Board of Directors (and any
committee thereof) and of the shareholders of Media Challenge since the date
of
incorporation and accurately reflect all transactions referred to in such
minutes and consents in lieu of meetings.
(d) Authority.
Media
Challenge has all requisite power to enter into this Agreement and, subject
to
approval of the proposed transaction by the holders of 100% of its issued and
outstanding shares which are entitled to vote to approve the proposed
transaction, has the requisite power and authority to consummate the
transactions contemplated hereby. Except as specified herein, no other corporate
or shareholder proceedings on the part of Media Challenge are necessary to
authorize the Exchange and the other transactions contemplated
hereby.
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(e) Conflict
with Agreements; Approvals.
The
execution and delivery of this Agreement does not, and the consummation of
the
transactions contemplated hereby will not, conflict with, or result in any
violation of any provision of the Certificate of Incorporation or Bylaws of
Media Challenge or of any loan or credit agreement, note, mortgage, indenture,
lease, benefit plan or other agreement, obligation, instrument, permit,
concession, franchise, license, judgment, order, decree, statute, law,
ordinance, rule or regulation applicable to Media Challenge or its properties
or
assets. No consent, approval, order or authorization of, or registration,
declaration or filing with, any Governmental Entity is required by or with
respect to Media Challenge in connection with the execution and delivery of
this
Agreement by Media Challenge, or the consummation by Media Challenge of the
transactions contemplated hereby.
(f) RESERVED.
(g) Books
and Records.
Media
Challenge has made and will make available for inspection by Infolife upon
reasonable request all the books of account, relating to the business of Media
Challenge. Such books of account of Media Challenge have been maintained in
the
ordinary course of business. All documents furnished or caused to be furnished
to Infolife by Media Challenge are true and correct copies, and there are no
amendments or modifications thereto except as set forth in such
documents.
(h) Compliance
with Laws.
Media
Challenge is and has been in compliance in all material respects with all laws,
regulations, rules, orders, judgments, decrees and other requirements and
policies imposed by any Governmental Entity applicable to it, its properties
or
the operation of its businesses.
(i) Liabilities
and Obligations.
Media
Challenge has no material liabilities or obligations (absolute, accrued,
contingent or otherwise) except (i) liabilities that are reflected and reserved
against on the Media Challenge financial statements that have not been paid
or
discharged since the date thereof and (ii) liabilities incurred since the date
of such financial statements in the ordinary course of business consistent
with
past practice and in accordance with this Agreement.
(j) Litigation.
There is
no suit, action or proceeding pending, or, to the knowledge of Media Challenge
threatened against or affecting Media Challenge, which is reasonably likely
to
have a material adverse effect on Media Challenge, nor is there any judgment,
decree, injunction, rule or order of any Governmental Entity or arbitrator
outstanding against Media Challenge having, or which, insofar as reasonably
can
be foreseen, in the future could have, any such effect.
(k) Taxes.
Media
Challenge has filed or will file within the time prescribed by law (including
extension of time approved by the appropriate taxing authority) all tax returns
and reports required to be filed with all other jurisdictions where such filing
is required by law; and Media Challenge has paid, or made adequate provision
for
the payment of all taxes, interest, penalties, assessments or deficiencies
due
and payable on, and with respect to such periods. Media Challenge knows of
(i)
no other tax returns or reports which are required to be filed which have not
been so filed and (ii) no unpaid assessment for additional taxes for any fiscal
period or any basis therefore.
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(l) Licenses,
Permits; Intellectual Property.
Media
Challenge owns or possesses in the operation of its business all material
authorizations which are necessary for it to conduct its business as now
conducted. Neither the execution or delivery of this Agreement nor the
consummation of the transactions contemplated hereby will require any notice
or
consent under or have any material adverse effect upon any such
authorizations.
2.3 Representations
and Warranties of the Shareholders.
By
execution of this Agreement, each of the Shareholders represents and warrants
to
Infolife as follows:
(a) Shares
Free and Clear.
The
shares of Media Challenge which he or she owns are free and clear of any liens,
claims, options, charges or encumbrances of any nature.
(b) Unqualified
Right to Transfer Shares.
He or
she has the unqualified right to sell, assign, and deliver the portion of the
shares of Media Challenge specified on Exhibit B and, upon consummation of
the
transactions contemplated by this Agreement, Infolife will acquire good and
valid title to such shares, free and clear of all liens, claims, options,
charges, and encumbrances of whatsoever nature.
(c) Agreement
and Transaction Duly Authorized.
He or
she is authorized to execute and deliver this Agreement and to consummate the
share exchange transaction described herein. Neither the execution and delivery
of this Agreement nor the consummation of the transactions contemplated hereby
will constitute a violation or default under any term or provision of any
contract, commitment, indenture, other agreement or restriction of any kind
or
character to which such Shareholder is a party or by which such Shareholder
is
bound.
ARTICLE
III
COVENANTS
RELATING TO CONDUCT OF BUSINESS
3.1 Covenants
of Media Challenge and Infolife.
During
the period from the date of this Agreement and continuing until the Effective
Time, Media Challenge and Infolife each agree as to themselves (except as
expressly contemplated or permitted by this Agreement, or to the extent that
the
other party shall otherwise consent in writing):
(a) Ordinary
Course.
Each
party shall carry on its respective businesses in the usual, regular and
ordinary course in substantially the same manner as heretofore
conducted.
(b) Dividends;
Changes in Stock.
No
party shall (i) declare or pay any dividends on or make other distributions
in
respect of any of its capital stock, or (ii) repurchase or otherwise acquire,
or
permit any subsidiary to purchase or otherwise acquire, any shares of its
capital stock.
(c) Issuance
of Securities.
No
party shall issue, deliver or sell, or authorize or propose the issuance,
delivery or sale of, any shares of its capital stock of any class, any voting
debt or any securities convertible into, or any rights, warrants or options
to
acquire, any such shares, voting debt or convertible securities.
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(d) Governing
Documents.
No
party shall amend or propose to amend its Articles of Incorporation or
Bylaws.
(e) No
Dispositions.
Except
for the transfer of assets in the ordinary course of business consistent with
prior practice, no party shall sell, lease, encumber or otherwise dispose of,
or
agree to sell, lease, encumber or otherwise dispose of, any of its assets,
which
are material, individually or in the aggregate, to such party.
(f) Indebtedness.
No
party shall incur any indebtedness for borrowed money or guarantee any such
indebtedness or issue or sell any debt securities or warrants or rights to
acquire any debt securities of such party or guarantee any debt securities
of
others other than in each case in the ordinary course of business consistent
with prior practice.
3.2
Other
Actions.
No
party shall take any action that would or is reasonably likely to result in
any
of its representations and warranties set forth in this Agreement being untrue
as of the date made (to the extent so limited), or in any of the conditions
to
the Exchange set forth in Article V not being satisfied.
ARTICLE
IV
ADDITIONAL
AGREEMENTS, COVENANTS AND RELATED TRANSACTIONS
4.1 Restricted
Infolife Shares.
The
Exchange Shares will not be registered under the Securities Act, but will be
issued pursuant to applicable exemptions from such registration requirements
for
transactions not involving a public offering and/or for transactions which
constitute “offshore transactions” as defined in Regulation S under the
Securities Act of 1933. Accordingly, the Exchange Shares will constitute
"restricted securities" for purposes of the Securities Act and the holders
of
Exchange Shares will not be able to transfer such shares except upon compliance
with the registration requirements of the Securities Act or in reliance upon
an
available exemption therefrom. The certificates evidencing the Exchange Shares
shall contain a legend to the foregoing effect and the holders of such shares
shall deliver at Closing an Investment Letter acknowledging the fact that the
Exchange Shares are restricted securities and agreeing to the foregoing transfer
restrictions.
4.2 Access
to Information.
Upon
reasonable notice, Infolife and Media Challenge shall each afford to the
officers, employees, accountants, counsel and other representatives of the
other
company, access to all their respective properties, books, contracts,
commitments and records and, during such period, each of Infolife and Media
Challenge shall furnish promptly to the other (a) a copy of each report,
schedule, registration statement and other document filed or received by it
during such period pursuant to the requirements of Federal or state securities
laws and (b) all other information concerning its business, properties and
personnel as such other party may reasonably request. Unless otherwise required
by law, the parties will hold any such information which is nonpublic in
confidence until such time as such information otherwise becomes publicly
available through no wrongful act of either party, and in the event of
termination of this Agreement for any reason each party shall promptly return
all nonpublic documents obtained from any other party, and any copies made
of
such documents, to such other party.
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4.3 Legal
Conditions to Exchange.
Each of
Infolife and Media Challenge shall take all reasonable actions necessary to
comply promptly with all legal requirements which may be imposed on itself
with
respect to the Exchange and will promptly cooperate with and furnish information
to each other in connection with any such requirements imposed upon any of
them
or upon any of their related entities or subsidiaries in connection with the
Exchange. Each party shall take all reasonable actions necessary to obtain
(and
will cooperate with each other in obtaining) any consent, authorization, order
or approval of, or any exemption by, any Governmental Entity or other public
or
private third party, required to be obtained or made by Infolife or Media
Challenge or any of their related entities or subsidiaries in connection with
the Exchange or the taking of any action contemplated thereby or by this
Agreement.
4.4 Infolife
Board of Directors and Officers.
The
current directors of Infolife shall resign as of the Closing Date except that
one of the directors shall remain on the board of directors and resign 7 days
after Media Challenge successfully appoints successors to the board of
directors.
ARTICLE
V
CONDITIONS
PRECEDENT
5.1 Conditions
to Each Party's Obligation To Effect the Exchange.
The
respective obligations of each party to effect the Exchange shall be conditional
upon the filing, occurring or obtainment of all authorizations, consents, orders
or approvals of, or declarations or filings with, or expirations of waiting
periods imposed by any governmental entity or by any applicable law, rule,
or
regulation governing the transactions contemplated hereby.
5.2 Conditions
to Obligations of Infolife.
The
obligation of Infolife to effect the Exchange is subject to the satisfaction
of
the following conditions on or before the Closing Date unless waived by
Infolife:
(a) Representations
and Warranties.
The
representations and warranties of Media Challenge and of the Shareholders set
forth in this Agreement shall be true and correct in all material respects
as of
the date of this Agreement and (except to the extent such representations and
warranties speak as of an earlier date) as of the Closing Date as though made
on
and as of the Closing Date, except as otherwise contemplated by this Agreement,
and Infolife shall have received a certificate signed on behalf of Media
Challenge by the President of Media Challenge and a certificate signed by each
of the Shareholders to such effect.
(b) Performance
of Obligations of Media Challenge.
Media
Challenge shall have performed in all material respects all obligations required
to be performed by it under this Agreement at or prior to the Closing Date,
and
Infolife shall have received a certificate signed on behalf of Media Challenge
by the President to such effect.
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(c) Closing
Documents.
Infolife shall have received such certificates and other closing documents
as
counsel for Infolife shall reasonably request.
(d) No
Dissenting Shares.
Shareholders holding 100% of the issued and outstanding common stock of number
of shares of common stock of Media Challenge shall have executed this Agreement
and consented to completion of the share exchange transaction described
herein.
(e) Consents.
Media
Challenge shall have obtained the consent or approval of each person whose
consent or approval shall be required in connection with the transactions
contemplated hereby under any loan or credit agreement, note, mortgage,
indenture, lease or other agreement or instrument, except those for which
failure to obtain such consents and approvals would not, in the reasonable
opinion of Infolife, individually or in the aggregate, have a material adverse
effect on Media Challenge and its subsidiaries and related entities taken as
a
whole upon the consummation of the transactions contemplated hereby. Media
Challenge shall also have received the approval of its shareholders in
accordance with applicable law.
(f) Due
Diligence Review.
Infolife shall have completed to its reasonable satisfaction a review of the
business, operations, finances, assets and liabilities of Media Challenge and
shall not have determined that any of the representations or warranties of
Media
Challenge contained herein are, as of the date hereof or the Closing Date,
inaccurate in any material respect or that Media Challenge is otherwise in
violation of any of the provisions of this Agreement.
(g) Pending
Litigation.
There
shall not be any litigation or other proceeding pending or threatened to
restrain or invalidate the transactions contemplated by this Agreement, which,
in the sole reasonable judgment of Infolife, made in good faith, would make
the
consummation of the Exchange imprudent. In addition, there shall not be any
other litigation or other proceeding pending or threatened against Media
Challenge, the consequences of which, in the judgment of Infolife, could be
materially adverse to Media Challenge.
5.3 Conditions
to Obligations of Media Challenge.
The
obligation of Media Challenge to effect the Exchange is subject to the
satisfaction of the following conditions unless waived by Media
Challenge:
(a) Representations
and Warranties.
The
representations and warranties of Infolife set forth in this Agreement shall
be
true and correct in all material respects as of the date of this Agreement
and
(except to the extent such representations speak as of an earlier date) as
of
the Closing Date as though made on and as of the Closing Date, except as
otherwise contemplated by this Agreement, Media Challenge shall have received
a
certificate signed on behalf of Infolife by the President to such
effect.
9
(b) Performance
of Obligations of Infolife.
Infolife shall have performed in all material respects all obligations required
to be performed by it under this Agreement at or prior to the Closing Date,
and
Media Challenge shall have received a certificate signed on behalf of Infolife
by the President to such effect.
(c) Closing
Documents.
Media
Challenge shall have received such certificates and other closing documents
as
counsel for Media Challenge shall reasonably request.
(d) Consents.
Infolife shall have obtained the consent or approval of each person whose
consent or approval shall be required in connection with the transactions
contemplated hereby.
(e) Due
Diligence Review.
Media
Challenge shall have completed to its reasonable satisfaction a review of the
business, operations, finances, assets and liabilities of Infolife and shall
not
have determined that any of the representations or warranties of Infolife
contained herein are, as of the date hereof or the Closing Date, inaccurate
in
any material respect or that Infolife is otherwise in violation of any of the
provisions of this Agreement.
(f) Pending
Litigation.
There
shall not be any litigation or other proceeding pending or threatened to
restrain or invalidate the transactions contemplated by this Agreement, which,
in the sole reasonable judgment of Media Challenge, made in good faith, would
make the consummation of the Exchange imprudent. In addition, there shall not
be
any other litigation or other proceeding pending or threatened against Infolife
the consequences of which, in the judgment of Media Challenge, could be
materially adverse to Infolife.
ARTICLE
VI
TERMINATION
AND AMENDMENT
6.1 Termination.
This
Agreement may be terminated at any time prior to the Effective
Time:
(a) by
mutual
consent of Infolife and Media Challenge;
(b) by
either
Infolife or Media Challenge if there has been a material breach of any
representation, warranty, covenant or agreement on the part of the other set
forth in this Agreement which breach has not been cured within five (5) business
days following receipt by the breaching party of notice of such breach, or
if
any permanent injunction or other order of a court or other competent authority
preventing the consummation of the Exchange shall have become final and
non-appealable; or
(c) by
either
Infolife or Media Challenge if the Exchange shall not have been consummated
before January 15, 2006.
6.2 Effect
of Termination.
In the
event of termination of this Agreement by either Media Challenge or Infolife
as
provided in Section 6.1, this Agreement shall forthwith become void and there
shall be no liability or obligation on the part of any party hereto. In such
event, all costs and expenses incurred in connection with this Agreement and
the
transactions contemplated hereby shall be paid by the party incurring such
expenses.
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6.3 Amendment.
This
Agreement may be amended by mutual agreement of Infolife, Media Challenge and
the Shareholders, provided that in the case of Infolife and Media Challenge,
any
such amendment must authorized by their respective Boards of Directors, and
to
the extent required by law, approved by their respective shareholders. Any
such
amendment must be by an instrument in writing signed on behalf of each of the
parties hereto.
6.4 Extension;
Waiver.
At any
time prior to the Effective Time, the parties hereto, by action taken or
authorized by their respective Board of Directors, may, to the extent legally
allowed, (a) extend the time for the performance of any of the obligations
or
other acts of the other parties hereto, (b) waive any inaccuracies in the
representations and warranties contained herein or in any document delivered
pursuant hereto and (c) waive compliance with any of the agreements or
conditions contained herein. Any agreement on the part of a party hereto to
any
such extension or waiver shall be valid only if set forth in a written
instrument signed on behalf of such party.
ARTICLE
VII
GENERAL
PROVISIONS
7.1 Survival
of Representations, Warranties and Agreements.
All of
the representations, warranties and agreements in this Agreement or in any
instrument delivered pursuant to this Agreement shall survive the Effective
Time
for a period of three years from the date of this Agreement.
7.2 Notices.
All
notices and other communications hereunder shall be in writing and shall be
deemed given if delivered personally, telecopied (which is confirmed) or mailed
by registered or certified mail (return receipt requested) to the parties at
the
following addresses (or at such other address for a party as shall be specified
by like notice):
(a) If
to
Infolife:
000
Xxxx
000 Xxxxx
Xxxxx
0000
Xxxx
Xxxx
Xxxx, XX 00000
(b) If
to
Media Challenge:
x/x
Xxxx 0000, Xxxxxxxxx Tower
The
Landmark, 15 Queen’s Road Central
Hong
Kong
(c) If
to the
Shareholders, at their respective addresses specified on Exhibit B.
11
7.3 Interpretation.
When a
reference is made in this Agreement to Sections, such reference shall be to
a
Section of this Agreement unless otherwise indicated. The headings contained
in
this Agreement are for reference purposes only and shall not affect in any
way
the meaning or interpretation of this Agreement. Whenever the words "include",
"includes" or "including" are used in this Agreement, they shall be deemed
to be
followed by the words "without limitation". The phrase "made available" in
this
Agreement shall mean that the information referred to has been made available
if
requested by the party to whom such information is to be made
available.
7.4 Counterparts.
This
Agreement may be executed in two or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when two or
more counterparts have been signed by each of the parties and delivered to
the
other parties, it being understood that all parties need not sign the same
counterpart.
7.5 Entire
Agreement; No Third Party Beneficiaries; Rights of
Ownership.
This
Agreement (including the documents and the instruments referred to herein)
constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof, and is not intended to confer upon any person other
than
the parties hereto any rights or remedies hereunder.
7.6 Governing
Law.
This
Agreement shall be governed and construed in accordance with the laws of the
State of Texas without regard to principles of conflicts of law. Each party
hereby irrevocably submits to the jurisdiction of any Texas state court or
any
federal court in the State of Texas in respect of any suit, action or proceeding
arising out of or relating to this Agreement, and irrevocably accept for
themselves and in respect of their property, generally and unconditionally,
the
jurisdiction of the aforesaid courts.
7.7 No
Remedy in Certain Circumstances.
Each
party agrees that, should any court or other competent authority hold any
provision of this Agreement or part hereof or thereof to be null, void or
unenforceable, or order any party to take any action inconsistent herewith
or
not to take any action required herein, the other party shall not be entitled
to
specific performance of such provision or part hereof or thereof or to any
other
remedy, including but not limited to money damages, for breach hereof or thereof
or of any other provision of this Agreement or part hereof or thereof as a
result of such holding or order.
7.8 Publicity.
Except
as otherwise required by law or the rules of the SEC, so long as this Agreement
is in effect, no party shall issue or cause the publication of any press release
or other public announcement with respect to the transactions contemplated
by
this Agreement without the written consent of the other party, which consent
shall not be unreasonably withheld.
7.9 Assignment.
Neither
this Agreement nor any of the rights, interests or obligations hereunder shall
be assigned by any of the parties hereto (whether by operation of law or
otherwise) without the prior written consent of the other parties. Subject
to
the preceding sentence, this Agreement will be binding upon, inure to the
benefit of and be enforceable by the parties and their respective successors
and
assigns.
12
IN
WITNESS WHEREOF,
this
Agreement for Share Exchange has been signed by the parties set forth below
as
of the date set forth above.
INFOLIFE,
INC.
By:_______________________
Chief
Executive Officer
Date:
December 31, 2005
MEDIA
CHALLENGE HOLDINGS LIMITED
By:
________________________________
Xx
Xxxx
Sheng
Chairman
and CEO
Date:
December 31, 2005
SHAREHOLDERS:
_____________________________________
Li
Yingsheng Date
_____________________________________
Li
Yingsheng Date
_____________________________________
Ren
Dongsheng Date
13
EXHIBIT
A
CONVERTIBLE
PROMISSORY NOTE
DUE
DECEMBER 31, 2006
THIS
CONVERTIBLE PROMISSORY NOTE is issued by Infolife, Inc., a Texas corporation
(the "Company"), designated as its Convertible Promissory Note, due December
31,
2006 (the "Convertible Note") issued pursuant to the Agreement for Share
Exchange dated December 31, 2005 between Media Challenge Holidngs Limited,
a
British Virgin Islands corporation (“Media Challenge”), its shareholders (the
"Shareholders") and the Company (the "Share Exchange Agreement").
FOR
VALUE
RECEIVED, the Company promises to pay (ratably as per their
shareholdings
in Media Challenge) to the Shareholders or their registered assigns
(the
"Holders"),
the principal sum of $441,600 on December 31, 2006 or such earlier date as
the
Convertible Note is required or permitted to be repaid as provided hereunder
(the "MATURITY DATE"), and to pay interest to the Holders on the aggregate
unconverted and then outstanding principal amount of this Convertible Note
at
the rate of 5% per annum, payable on the Maturity Date as set forth herein.
Interest shall be calculated on the basis of a 360-day year and shall accrue
on
the Maturity Date. On the Maturity Date, the Company may, in its sole
discretion, pay the principal sum (and interest accrued) by issuing to the
Holders 22,080,000 shares of the Company's restricted common stock, provided
a
required one for ten reverse stock split of the common stock has been
effected.
This
Convertible Note is subject to the following additional provisions:
1.
SUBJECT TO SHARE EXCHANGE AGREEMENT. This Convertible Note has been issued
subject to certain investment representations of the original Holders set
forth
in the Share Exchange Agreement and may be transferred or exchanged only
in
compliance with the Share Exchange Agreement and applicable federal and state
securities laws and regulations. Prior to due presentment to the Company
for
transfer of this Convertible Note, the Company and any agent of the Company
may
treat the persons in whose names this Convertible Note is duly registered
on the
Convertible Note Register as the owners hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this
Convertible Note is overdue, and neither the Company nor any such agent shall
be
affected by notice to the contrary.
2.
EVENTS
OF DEFAULT.
(a)
"EVENT OF DEFAULT", wherever used herein, means any one of the following
events
(whatever the reason and whether it shall be voluntary or involuntary or
effected by operation of law or pursuant to any judgment, decree or order
of any
court, or any order, rule or regulation of any administrative or governmental
body):
(i)
any
default in the payment of the principal of, interest on, or liquidated damages
in respect of, any Convertible Note, free of any claim of subordination,
as and
when the same shall become due and payable (whether on a Conversion Date
or the
Maturity Date or by acceleration or otherwise) which default is not cured,
if
possible to cure, within 30 days of notice of such default sent by the
Holder;
14
(ii)
the
Company or any of its subsidiaries shall commence, or there shall be commenced
against the Company or any such subsidiary a case under any applicable
bankruptcy or insolvency laws as now or hereafter in effect or any successor
thereto, or the Company commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency
or
liquidation or similar law of any jurisdiction whether now or hereafter in
effect relating to the Company or any subsidiary thereof or there is commenced
against the Company or any subsidiary thereof any such bankruptcy, insolvency
or
other proceeding which remains undismissed for a period of 60 days; or the
Company or any subsidiary thereof is adjudicated insolvent or
bankrupt;
or any order of relief or other order approving any such case or proceeding
is
entered; or the Company or any subsidiary thereof suffers any appointment
of any
custodian or the like for it or any substantial part of its property which
continues undischarged or unstayed for a period of 60 days; or the Company
or
any subsidiary thereof makes a general assignment for the benefit of creditors;
or the Company shall fail to pay, or shall state that it is unable to pay,
or
shall be unable to pay, its debts generally as they become due; or the Company
or any subsidiary thereof shall call a meeting of its creditors with a view
to
arranging a composition, adjustment or restructuring of its debts; or the
Company or any subsidiary thereof shall by any act or failure to act expressly
indicate its consent to, approval of or acquiescence in any of the foregoing;
or
any corporate or other action is taken by the Company or any subsidiary thereof
for the purpose of effecting any of the foregoing.
(b)
REMEDIES UPON DEFAULT. If any Event of Default occurs and is continuing,
the
full principal amount of this Convertible Note, together with interest and
other
amounts owing in respect thereof, to the date of acceleration shall become
at
the Holders' election, immediately due and payable in cash. The Holder need
not
provide and the Company hereby waives any presentment, demand, protest or
other
notice of any kind, and the Holders may immediately and without expiration
of
any grace period enforce any and all of its rights and remedies hereunder
and
all other remedies available to it under applicable law. Such declaration
may be
rescinded and annulled by Holders at any time prior to payment hereunder
and the
Holders shall have all rights as Convertible Note holders until such time,
if
any, as the full payment under this Section shall have been received by it.
No
such rescission or annulment shall affect any subsequent Event of Default
or
impair any right consequent thereon.
3.
CONVERSION.
(a)
CONVERSION RIGHT. At any time after the Original Issue Date until this
Convertible
Note is no longer outstanding, this Convertible Note shall be convertible
into
shares of Common Stock at the option of the Holder, in whole (and not in
part)
at any time and from time to time (subject to the limitations on conversion
set
forth in this Section 3(a) hereof). The Holders shall effect conversions
by
delivering to the Company the form of Notice of Conversion attached hereto
as
ANNEX A (a "NOTICE OF CONVERSION"), specifying therein the principal amount
of
Convertible Note to be converted and the date on which such conversion is
to be
effected (a "CONVERSION DATE"). If no Conversion Date is specified in a Notice
of Conversion, the Conversion Date shall be the date that such Notice of
Conversion is provided hereunder. Conversions hereunder shall have the effect
of
lowering the outstanding principal amount of this Convertible Note in an
amount
equal to the applicable conversion. The Holders and the
Company
shall maintain records showing the principal amount converted and the date
of
such conversion. The Holders and any assignee, by acceptance of this Convertible
Note, acknowledge and agree that, by reason of the provisions of this paragraph,
following conversion of this Convertible Note, the principal amount of this
Convertible Note may be less than the amount stated on the face
hereof.
15
(b)
UNDERLYING SHARES ISSUABLE UPON CONVERSION AND PURSUANT TO THE CONVERSION
OF
PRINCIPAL AMOUNT. The number of shares of Common Stock issuable upon conversion
shall be 22,080,000 (post a required one for ten reverse stock split) shares
of
the Company's restricted common stock (the "Underlying Shares").
(c)
DELIVERIES UPON CONVERSION. Not later than 10 Business Days after any
Conversion
Date, the Company will deliver to the Holders a certificate or certificates
representing the Underlying Shares representing the number of shares of Common
Stock being acquired upon the conversion of Convertible Note (including,
if so
timely elected by the Company, shares of Common Stock representing the payment
of accrued interest).
(d)
ADJUSTMENTS.
(i)
If
the Company, at any time while the Convertible Note is outstanding: (A) shall
pay a stock dividend or otherwise make a distribution or distributions on
shares
of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include
any
shares of Common Stock issued by the Company pursuant to this Convertible
Note,
including interest thereon), (B) subdivide outstanding shares of Common Stock
into a larger number of shares, (C) combine (including by way of reverse
stock
split) outstanding shares of Common Stock into a smaller number of shares,
or
(D) issue by reclassification of shares of the Common Stock any shares of
capital stock of the Company, then the number of
Underlying
Shares into which this Convertible Note is convertible into shall be
correspondingly adjusted by multiplying such number of shares by a fraction
of
which the numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding before such event and of which the
denominator shall be the number of shares of Common Stock outstanding after
such
event. Any adjustment made pursuant to this Section shall become effective
immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or
re-classification.
16
(ii)
All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section
3,
the number of shares of Common Stock deemed to be outstanding as of a given
date
shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) outstanding on a fully diluted basis.
(e)
The
Company covenants that all shares of Common Stock that shall be so issuable
shall, upon issue, be duly and validly authorized, issued and fully paid,
nonassessable.
(f)
The
issuance of certificates for shares of the Common Stock on conversion of
the
Convertible Note shall be made without charge to the Holders thereof for
any
documentary stamp or similar taxes that may be payable in respect of the
issue
or delivery of such certificate, provided that the Company shall not be required
to pay any tax that may be payable in respect of any transfer involved in
the
issuance and delivery of any such certificate upon conversion in a name other
than that of the Holder of such Convertible Note so converted and the Company
shall not be required to issue or deliver such certificates unless or until
the
person or persons requesting the issuance thereof shall have paid to the
Company
the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid.
4.
DEFINITIONS. For the purposes hereof, in addition to the terms defined elsewhere
in this Convertible Note: (a) capitalized terms not otherwise defined herein
have the meanings given to such terms in the Agreement, and (b) the following
terms shall have the following meanings:
"BUSINESS
DAY" means any day except Saturday, Sunday and any day which shall be a federal
legal holiday in the United States or a day on which banking institutions
in the
State of New York are authorized or required by law or other government action
to close.
"COMMISSION"
means the Securities and Exchange Commission.
"COMMON
STOCK" means the common stock, $0.001 par value per share, of the Company
and
stock of any other class into which such shares may hereafter have been
reclassified or changed.
"EXCHANGE
ACT" means the Securities Exchange Act of 1934, as amended.
"ORIGINAL
ISSUE DATE" shall mean the date of the first issuance of the Convertible
Note
regardless of the number of transfers of any Convertible Note and regardless
of
the number of instruments which may be issued to evidence such Convertible
Note.
"SECURITIES ACT" means the Securities Act of 1933, as amended, and the rules
and
regulations promulgated thereunder.
17
"UNDERLYING
SHARES" means the shares of Common Stock issuable upon conversion of Convertible
Note or as payment of interest in accordance with the terms hereof.
5.
DEBT
OBLIGATION. This Convertible Note is a direct debt obligation of the Company.
This Convertible Note ranks PARI PASSU with all other Convertible Notes now
or
hereafter issued under the terms set forth herein.
6.
REPLACEMENT OF NOTE. If this Convertible Note shall be mutilated, lost, stolen
or destroyed, the Company shall execute and deliver, in exchange and
substitution for and upon cancellation of a mutilated Convertible Note, or
in
lieu of or in substitution for a lost, stolen or destroyed Convertible Note,
a
new Convertible Note for the principal amount of this Convertible Note so
mutilated, lost, stolen or destroyed but only upon receipt of evidence of
such
loss, theft or destruction of such Convertible Note, and of the ownership
hereof, and indemnity, if requested, all reasonably satisfactory to the
Company.
7.
INTERPRETATION; CHOICE OF LAW. All questions concerning the construction,
validity, enforcement and interpretation of this Convertible Note shall be
governed by and construed and enforced in accordance with the internal laws
of
the State of Nevada, without regard to the principles of conflicts of law
thereof. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Convertible Note or the
transactions contemplated hereby. If either party shall commence an action
or
proceeding to enforce any provisions of this Convertible Note, then the
prevailing party in such action or proceeding shall be reimbursed by the
other
party for its reasonable attorneys' fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or
proceeding.
8.
WAIVER. Any waiver by the Company or the Holders of a breach of any provision
of
this Convertible Note shall not operate as or be construed to be a waiver
of any
other breach of such provision or of any breach of any other provision of
this
Convertible Note. The failure of the Company or the Holders to insist upon
strict adherence to any term of this Convertible Note on one or more occasions
shall not be considered a waiver or deprive that party of the right thereafter
to insist upon strict adherence to that term or any other term of this
Convertible Note. Any waiver must be in writing.
9.
MISCELLANEOUS. If any provision of this Convertible Note is invalid, illegal
or
unenforceable, the balance of this Convertible Note shall remain in effect,
and
if any provision is inapplicable to any person or circumstance, it shall
nevertheless remain applicable to all other persons and circumstances. If
it
shall be found that any interest or other amount deemed interest due hereunder
violates applicable laws governing usury, the applicable rate of interest
due
hereunder shall automatically be lowered to equal the maximum permitted rate
of
interest. The Company covenants (to the extent that it may lawfully do so)
that
it shall not at any time insist upon, plead, or in any manner whatsoever
claim
or take the benefit or advantage of, any stay, extension or usury law or
other
law which would prohibit or forgive the Company from paying all or any portion
of the principal of or interest on the Convertible Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect
the
covenants or the performance of this indenture, and the Company (to the extent
it may lawfully do so) hereby expressly waives all benefits or advantage
of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impeded the execution of any power herein granted to the Holder,
but
will suffer and permit the execution of every such as though no such law
has
been enacted. Whenever any payment or other obligation hereunder shall be
due on
a day other than a Business Day, such payment shall be made on the next
succeeding Business Day.
18
IN
WITNESS WHEREOF, the Company has caused this Convertible Note to be duly
executed by a duly authorized officer as of the date first above
indicated.
INFOLIFE, INC. | |||
By:
|
Name:
Xxxxxx Xx
Title:
Chief Executive Officer
|
19
EXHIBIT
B
SHAREHOLDERS
OF MEDIA CHALLENGE HOLDINGS LIMITED
NAME
and XXXXXXX
|
XXXXXX
XX
XXXXXX
|
XXXXXXXXXX
|
XX
XXXXXXXXX
Xx
0000-00, 35/F, Edinburgh Tower
The
Landmark, 00 Xxxxx’x Xx
Xxxxxxx,
Xxxx Xxxx
|
52,831
|
44%
|
DING
XXXXXXXX
Xx
0000-00, 35/F, Edinburgh Tower
The
Landmark, 00 Xxxxx’x Xx
Xxxxxxx,
Xxxx Xxxx
|
35,789
|
30%
|
REN
XXXXXXXXX
Xx
0000-00, 35/F, Edinburgh Tower
The
Landmark, 00 Xxxxx’x Xx
Xxxxxxx,
Xxxx Xxxx
|
32,380
|
27%
|
TOTAL
|
121,000
|
100%
|
20