SHARE EXCHANGE AGREEMENT
Exhibit 3.3
THIS SHARE EXCHANGE AGREEMENT ("Agreement"), made and entered into this 5th day of March 2018, is by and between United Rail, Inc., a Nevada corporation duly incorporated and organized under the laws of the State of Nevada, with principal offices located at 0000 X. Xxxxxxx Xxxxxx Xxxxx # 000 Xxx Xxxxx, Xxxxxx 00000, hereinafter referred to as ("XTRN"), and the United Shortline Insurance Services, a Pennsylvania corporation duly incorporated and organized under the laws of Pennsylvania, with principal offices located at 0000 X. Xxx Xxxx Xxxx Xxxxxx, Xxxxxxxx 00000, hereinafter referred to as ("USIS").
WHEREAS, USIS is a licensed insurance brokerage entity which has been serving the rail industry with innovative and railroad responsive products for the past 25 years. USIS is known for products specially designed for the Shortline and Regional Railroad Industry; and
WHEREAS, XTRN is in the rail business and owns a five percent (5%) royalty on all operating income generated from the use of its brand, X Train and logo, from the operations of specialty passenger trains from metropolitan areas in the US to resort gaming/casino destinations; and
WHEREAS, XTRN and USIS have entered into discussions to merge USIS into XTRN and XTRN has agreed to merge with USIS; and
WHEREAS, XTRN represents that it is in good standing in the state of Nevada and has all the necessary approvals to buy USIS; and
WHEREAS, USIS is in good standing in the state of Pennsylvania and has the necessary approvals to sell USIS; and
WHEREAS, XTRN and USIS entered into a Non-Disclosure Agreement dated March 5, 2017 (the "Non-Disclosure Agreement"), under which the Parties agreed to keep confidential certain information of each Party shared in connection with exploring potential business opportunities with respect to XTRN and USIS; and
WHEREAS, XTRN and USIS have also entered into a Memorandum of Understanding dated January 30, 2018; and
WHEREAS, XTRN and USIS wish to enter into the exchange of USIS and XTRN for the purposes of creating a public company to acquire short line railroad companies underneath the new combined companies.
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With that background and understanding, the Parties are entering into this Share Exchange Agreement:
"USIS" means certain services to be provided by USIS related to insurance.
"Effective Date" means the effective date of this Agreement, as set forth in the first paragraph of this Agreement.
"Agreement" means this Agreement of Understanding.
"Party" or "Parties" means United Shortline Insurance Services and/or United Rail
The purpose of this Share Exchange Agreement is for XTRN and USIS to merge their companies.
XTRN will be responsible for all the required filings with the Securities Exchange
Commission to remain at all times fully reporting.
XTRN agrees to comply with all applicable federal, state and local laws, rules or regulations.
XTRN will provide a Five Million dollar ($5,000,000) At the Market (ATM) equity purchase facility from a bona fide financial institution.
5. |
Scope of USIS Services
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The Parties hereby agree to Services below
6. |
USIS Responsibilities
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USIS will be responsible for the daily management of USIS related to insurance matters. USIS agrees to comply with all applicable federal, state and local laws, rules or regulations.
USIS agrees to make available the services of Xxx Xxxxxxxxxxx to serve as President of XTRN post-exchange
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7. |
Closing
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The Parties agree to close this transaction by March 5, 2018.
8. |
Compensation and Price
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XTRN agrees to acquire a forty nine percent (49%) interest in USIS for the consideration of five million dollars ($5,000,000) which is one hundred million shares of common stock of United Rail, Inc. at the post split price of five cents per share.
In addition, Xxx Xxxxxxxxxxx will receive an employment agreement for a 5 year term with a base salary of $150,000 per year. He will also be President of USIS and XTRN and become a part of the senior management team at XTRN. Xxxxxxx Xxxxxx will be elected Chairman of the Board and be appointed CEO of the combined companies and shall receive an employment agreement for a 5 year term with a base salary of $150,000 per year. Xxxxx Xxxxxxxxxxx will be appointed CFO and shall receive an employment agreement for a 5 year term with a base salary of $120,000 per year.
Current XTRN Management will manage all of the SEC compliance issues and USIS Management will operate the insurance business and be a member of the board of directors.
All royalties due to XTRN shall remain the sole property of XTRN's shareholders and shall be distributed pro-rata according to their interests prior to the exchange being completed.
All revenues and profits or royalties shall first be recorded on the income statement of the parent company and then distributed to the respective subsidiaries as working capital.
The Parties agree to work exclusively with one another with respect to the subject matter contemplated by this Agreement.
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The documents and information disclosed by or on behalf of either Party to the other Party in connection with this agreement shall constitute "Confidential Information," as defined in, and subject to the terms and conditions of, the Non-Disclosure Agreement.
XTRN and USIS shall bear their own expenses in the performance of its obligations under this Agreement, under payment provisions to be agreed upon by the Parties and agreed upon in the Final Agreement.
13. |
Assignment
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This Agreement may not be assigned by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld.
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The Parties agree that neither shall issue any news releases, public announcements, or advertising material related to this Agreement, provided that each Party shall be allowed, after coordination with the other Party, to make such public disclosures of its own corporate affairs related to this Agreement as may be required of publicly traded companies by applicable laws or regulations.
16. |
Rescission.
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Both parties shall have up to 6 months from the execution of this Agreement hereto, to completely dissolve, rescind and abrogate the Agreement. Any and all oral or verbal agreements or understandings that may have been made between any of the parties hereto, or any collateral written agreements that may have been made shall be deemed null and void.
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17. |
Mutual Release.
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The parties hereby fully, irrevocably, and unconditionally forever mutually release and discharge each other hereto, and all from and against any and all actions, causes of action, claims, judgments, liabilities, obligations, claims for compensation, demands, costs, fees, and expenses of whatever kind or nature, including, without limitation, attorneys' fees and costs, whether known or unknown, foreseen or unforeseen, related in any way, directly or indirectly, to this Agreement.
18. |
Return of Property.
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Each of the parties to this Agreement agrees to return any stock certificates and the investment of $200K previously paid by USIS that was exchanged during negotiations of this Agreement. If USIS rescinds, shares issued are returned and a repay schedule for the $200K shall be paid back over 6 months. If United Rail, Inc. rescinds, USIS returns its shares and is paid back the full $200K at the time of rescission.
19. Severability
If any portion of this Agreement is held to be unenforceable, the remaining portions of this Agreement shall not be affected by such unenforceability.
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This Agreement is entered into as of the Effective Date and shall terminate upon the earlier to occur of the following:
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If the Parties are unable to resolve a dispute relating to this Agreement, either Party may bring an action in a proper court of law in the United States, which court shall have exclusive jurisdiction to resolve any such dispute. Both Parties shall agree to submit to the jurisdiction of such court.
23. |
No Waiver
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24. |
Separate Property of Participants
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By this Agreement or the performance of the transactions contemplated hereby, neither XTRN nor USIS shall acquire any ownership or interest in any property whatsoever of the other Party.
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Xxxxxxx Xxxxxx, CEO
0000 X. Xxxxxxx Xxxxxx Xxxxx # 000
Xxx Xxxxx, Xxxxxx 00000
If to USIS, to:
Xxxxx X. Xxxxxxxxxxx, President and CEO
0000 X. Xxx Xxxx
Xxxx Xxxxxx, Xxxxxxxx 00000
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This Agreement shall be governed by and interpreted in accordance with the laws of Nevada, without regard to its choice of law rules.
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the day and year first above written.
Signature: /s/Xxxxx Xxxxxx
Title: CEO
Date: 3/5/18
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United Shortline Insurance Services
Signature: /s/ Xxx Xxxxxxxxxxx
Name: Xxxxx X. Xxxxxxxxxxx
Title: President / CEO
Date: 3/5/18
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