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Exhibit 2.1
Execution Copy
FIRST AMENDMENT TO AGREEMENT AND PLAN OF
MERGER
THIS FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER is entered
into as of this 29th day of January, 2007 (this "Amendment"), by
and among INTAC INTERNATIONAL, INC. , a Nevada corporation
("Company"), HOWSTUFFWORKS, INC. , a Delaware corporation
("HSW"), HSW INTERNATIONAL, INC. , a Delaware corporation
and a wholly owned subsidiary of HSW ("Parent"), and HSW
INTERNATIONAL MERGER CORPORATION , a Nevada corporation and a
wholly owned subsidiary of Parent ("Merger Sub").
Background
A.
The parties have entered into that certain Agreement
and Plan of Merger dated as of April 20, 2006 (the "Merger
Agreement") pursuant to which, among other things, the parties have
agreed to effect the Contribution, the Merger and the Transaction,
subject to the terms and conditions thereunder.
B.
The parties desire to amend the Merger Agreement as
set forth herein. The Board of Directors of each of the
parties hereto has approved this Amendment.
C.
On or before the date hereof, Company, Intac
International Holdings Limited, a Hong Kong corporation
("Intac Holdings"), Cyber Proof Investments Ltd., a British Virgin
Islands corporation, and Wei Zhou have entered into a Share
Purchase Agreement dated as of January 29, 2007 and attached
hereto as Exhibit A pursuant to which Cyber Proof
Investments Ltd. shall purchase all of the outstanding shares of
the Distribution Subsidiaries.
D.
Parent, HSW and Wei Zhou have entered into an
Amended and Restated Stockholders Agreement, dated as of the date
hereof and attached hereto as Exhibit B (the "Amended and
Restated Stockholders Agreement"), amending and restating that
certain Stockholders Agreement among them dated as of April 20,
2006.
E.
That certain Stock Purchase Agreement among Parent,
High River Limited Partnership and StuffWorks, LLC, dated as of
April 20, 2006 and attached as the original Exhibit C-1 to the
Merger Agreement, has been terminated.
F.
Parent and DWS Finanz-Service GmbH, on behalf of the
sub-fund DWS Invest BRIC Plus of the DWS Invest SICAV, have entered
into a First Amendment to Stock Purchase Agreement, dated as of the
date hereof and attached hereto as Exhibit C (the "Amendment
to Purchase Agreement"), amending that certain Stock Purchase
Agreement between them dated as of April 20, 2006.
G.
Parent has entered into six additional Stock
Purchase Agreements, dated as of the date hereof and attached
hereto as Exhibit D , Exhibit E , Exhibit F ,
Exhibit G , Exhibit H and Exhibit I with the
purchasers named therein, the closing of which is an integral part
of the Transaction.
H.
Parent and Jeffrey Arnold have entered into an
Amended and Restated Agreement, dated as of August 23, 2006 and
attached hereto as Exhibit J (the "Amended and Restated
Consulting Agreement"), amending and restating that certain
consulting agreement between them dated as of April 20,
2006.
Agreement
NOW THEREFORE, in consideration of the mutual covenants herein
contained and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1.
Index of Defined Terms . The
Index of Defined Terms in the Merger Agreement is hereby amended to
include the following:
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Defined Terms
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Defined in
Section
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Distribution Acquisition
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10.14
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Distribution Acquisition Share
Consideration
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10.14
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Distribution Business
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10.14
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Distribution Share Purchase Agreement
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10.14
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Distribution Subsidiaries
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10.14
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Meidi Technology
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10.14
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2.
Stockholders Agreement .
Exhibit B attached to the Merger Agreement is hereby deleted
in its entirety and the Amended and Restated Stockholders Agreement
attached hereto as Exhibit B shall be substituted in lieu
thereof. Any and all references in the Merger Agreement to
the Stockholders Agreement shall be deemed to be references to the
Amended and Restated Stockholders Agreement.
3.
Removal of High River Stock Purchase
Agreement; Additional Purchase Agreements .
(a)
Recital G of the Merger Agreement is hereby deleted
in its entirety and the following shall be substituted in lieu
thereof:
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"G.
Parent has entered into six Stock Purchase
Agreements, attached hereto as Exhibit C-1 , Exhibit
C-2 , Exhibit C-3 , Exhibit C-4 , Exhibit
C-5 , Exhibit C-6 and Exhibit C-7 (the "Purchase
Agreements"), with the purchasers named therein, the closing of
which is an integral part of the Transaction."
(b)
Exhibit C-1 attached to the Merger
Agreement is hereby removed and deleted from the Merger Agreement
in its entirety and the Stock Purchase Agreement attached hereto
as Exhibit D shall be substituted in lieu thereof.
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(c)
Exhibit C-2 to the Merger Agreement is
hereby amended to include the Amendment to Purchase Agreement
attached hereto as Exhibit C .
(d)
The Stock Purchase Agreement attached hereto as
Exhibit E shall be inserted as Exhibit C-3 to the
Merger Agreement.
(e)
The Stock Purchase Agreement attached hereto as
Exhibit F shall be inserted as Exhibit C-4 to the
Merger Agreement.
(f)
The Stock Purchase Agreement attached hereto as
Exhibit G shall be inserted as Exhibit C-5 to the
Merger Agreement.
(g)
The Stock Purchase Agreement attached hereto as
Exhibit H shall be inserted as Exhibit C-6 to the
Merger Agreement.
(h)
The Stock Purchase Agreement attached hereto as
Exhibit I shall be inserted as Exhibit C-7 to the
Merger Agreement.
(i)
Any and all references in the Merger Agreement to
the Purchase Agreements shall be deemed to be references to the
Purchase Agreements attached as Exhibit C-1 , Exhibit
C-2 , Exhibit C-3 , Exhibit C-4 , Exhibit
C-5 , Exhibit C-6 and Exhibit C-7 to the Merger
Agreement as hereby amended.
4.
Arnold Consulting Agreement .
Exhibit L attached to the Merger Agreement is hereby deleted
in its entirety and the Amended and Restated Consulting Agreement
attached hereto as Exhibit J shall be substituted in lieu
thereof. Any and all references in the Merger Agreement to
the Arnold Consulting Agreement shall be deemed to be references to
the Amended and Restated Consulting Agreement.
5.
Issuance of Shares to HSW .
Section 1.2 of the Merger Agreement is hereby deleted in its
entirety and the following shall be substituted in lieu
thereof:
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" 1.2
Issuance of Shares to HSW. In exchange
for the Contribution, Parent will issue to HSW, as of the Effective
Time, (a) that number of shares of Parent Common Stock which will,
together with the shares of Parent Common Stock currently held by
HSW, equal the total number of shares of Company Common Stock
issued and outstanding immediately prior to the Effective Time
(including the shares paid and delivered as the Distribution
Acquisition Share Consideration under the Distribution Share
Purchase Agreement but other than shares cancelled and retired in
accordance with Section 3.1(a)), and (b) a warrant granting to HSW
the right to purchase the number of shares of Parent Common Stock
equal to the number of shares eligible for purchase under the
Company Options assumed by Parent pursuant to Section 3.2 on the
same terms and conditions as such Company Options as of the Closing
Date, provided, however, that such terms and conditions shall
reflect any termination of services or
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6.
Board of Directors and Officers of the
Surviving Corporation . Exhibit 2.6 attached to
the Merger Agreement is hereby deleted in its entirety and the
Exhibit 2.6 attached hereto shall be substituted in lieu
thereof.
7.
Board of Directors and Officers of
Parent . Exhibit 2.7 attached to the Merger
Agreement is hereby deleted in its entirety and the Exhibit
2.7 attached hereto shall be substituted in lieu
thereof.
8.
Merger Consideration .
Subsection (a) of Section 3.1 of the Merger Agreement is hereby
deleted in its entirety and the following shall be substituted in
lieu thereof:
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"(a)
Each share of Company Common Stock held in the
treasury of Company and each share owned by Merger Sub or Parent
immediately prior to the Effective Time shall be canceled without
any conversion thereof and no payment or distribution shall be made
with respect thereto; provided that it is specifically acknowledged
and agreed that the shares paid and delivered as the Distribution
Acquisition Share Consideration under the Distribution Share
Purchase Agreement shall not be held by the Company and,
accordingly, shall not be canceled hereunder;"
9.
Distribution Business . The
following shall be inserted as a new Section 5.26 of the Merger
Agreement:
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