<SEC-DOCUMENT>0001078782-14-000470.txt : 20140328
<SEC-HEADER>0001078782-14-000470.hdr.sgml : 20140328
<ACCEPTANCE-DATETIME>20140328120803
ACCESSION NUMBER:		0001078782-14-000470
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140325
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Change in Shell Company Status
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140328
DATE AS OF CHANGE:		20140328

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SMARTDATA CORP
		CENTRAL INDEX KEY:			0000827876
		STANDARD INDUSTRIAL CLASSIFICATION:	BLANK CHECKS [6770]
		IRS NUMBER:				870449945
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-53498
		FILM NUMBER:		14724330

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 1593
		CITY:			MOAB
		STATE:			UT
		ZIP:			84532
		BUSINESS PHONE:		801-557-6748

	MAIL ADDRESS:	
		STREET 1:		PO BOX 1593
		CITY:			MOAB
		STATE:			UT
		ZIP:			84532
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k032714_8k.htm
<DESCRIPTION>FORM 8-K CURRENT REPORT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>FORM 8-K Current Report</TITLE>
<META NAME="author" CONTENT="Zach Bradford">
<META NAME="date" CONTENT="03/27/2014">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px" align=center><B>UNITED STATES</B></P>
<P style="margin:0px" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20509</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0px" align=center><B>Pursuant to Section 13 or 15(d) of the</B></P>
<P style="margin:0px" align=center><B>Securities Exchange Act</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Date of Report (Date of Earliest event Reported):&nbsp;<B>March 25, 2014</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:14pt" align=center><B><U>SMARTDATA CORPORATION</U></B></P>
<P style="margin:0px" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=179 /><TD width=29.067 /><TD width=131.333 /><TD width=33.533 /><TD width=179.133 /></TR>
<TR><TD style="margin-top:0px; border-bottom:2px solid #000000" valign=top width=179><P style="margin:0px" align=center>Nevada</P>
</TD><TD style="margin-top:0px" valign=top width=29.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:2px solid #000000" valign=top width=131.333><P style="margin:0px" align=center>000-53498</P>
</TD><TD style="margin-top:0px" valign=top width=33.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:2px solid #000000" valign=top width=179.133><P style="margin:0px" align=center>87-0449945</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=179><P style="margin:0px" align=center>(State or other jurisdiction of incorporation or organization)</P>
</TD><TD style="margin-top:0px" valign=top width=29.067><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=131.333><P style="margin:0px" align=center>(Commission File Number)</P>
</TD><TD style="margin-top:0px" valign=top width=33.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=179.133><P style="margin:0px" align=center>(IRS Employer Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>1436 Legend Hills Dr.</B></P>
<P style="margin:0px" align=center><B><U>Clearfield, Utah 84015</U></B></P>
<P style="margin:0px" align=center>(Address of principal executive offices, including zip code)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B><U>(801) 244-4405</U></B></P>
<P style="margin:0px" align=center>(Registrant&#146;s telephone number, including area code)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>P.O. Box 1593</B></P>
<P style="margin:0px" align=center><B><U>Moab, Utah 84532 </U></B></P>
<P style="margin:0px" align=center>(Former name or former address, if changed since last report)</P>
<P style="margin:0px">&nbsp;</P>
<P style="margin:0px" align=justify>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT><FONT style="font-family:Times New Roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT><FONT style="font-family:Times New Roman"> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)</FONT></P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT><FONT style="font-family:Times New Roman">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))</FONT></P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; font-family:Calibri,Times New Roman" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT><FONT style="font-family:Times New Roman">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))</FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=justify><B>Section 1 - Registrant's Business and Operations</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Item 1.01 Entry into a Material Definitive Agreement</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On March 25, 2014, SMS Management Services, LLC(&quot;SMS&quot;) an entity approximately 66% controlled by S. Matthew Schultz the Company's Chief Executive Officer and Bruce Lybbert a Director of the Company and SmartData Corporation, (the &quot;Company&quot;) entered into an Asset and Intellectual Property Purchase Agreement (&quot;Purchase Agreement&quot;). &nbsp;&nbsp;Pursuant to which SMS sold to the Company: (i) all Intellectual Property rights, title and interest in Patent # 8,105,401 'Parallel Path, Downdraft Gasifier Apparatus and Method' (ii) all Intellectual Property rights, title and interest in Patent # 8,518,133 'Parallel Path, Downdraft Gasifier Apparatus and Method' &nbsp;(ii) all of the Property rights, title and interest in a 32 inch Downdraft Gasifier (&quot;Gasifier&quot;). </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Pursuant to the Purchase Agreement the Company agreed to issue 715,320 shares of &quot;SMARTDATA&quot; $0.001 par value common stock to SMS or it's designees and assume of $156,900 in liabilities to Petersen Incorporated for the engineering and construction of the Gasifier.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">The foregoing description of the terms of the Purchase Agreement is qualified in its entirety by reference to the provisions of the agreement filed as Exhibit 10.1 to this report, which is incorporated by reference herein.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">In connection with entering into the Purchase Agreement the Company has begun pursuing opportunities to utilize the assets and intellectual properties purchased. &nbsp;The Company aims to further develop these technologies in order to pursue licensing, manufacturing and direct sales agreements for its Gasifier technology.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The technologies and prototype will undergoing clinical lab testing to further establish its capability of producing large volumes of clean, renewable energy from any carbon compound (Municipal Solid Waste (MSW), Coal, Sewage Sludge) into clean Synthesis Gas. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Section 2 - Financial Information</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF"><B>Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant</B></FONT></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">&nbsp;</FONT></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">The information contained in Item 1.01 of this Form 8-K is incorporated herein by reference.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF"><B>Section 3 - Securities and Trading Markets</B></FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF"><B>Item 3.02&nbsp; Unregistered Sales of Equity Securities</B></FONT></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">&nbsp;</FONT></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">In connection with the Asset and Intellectual Property Purchase Agreement, the Company will issue 715,320 shares of restricted $0.001 par value common stock. The shares were authorized for issuance pursuant to an exemption under Section 4(2) of the Securities Act of 1933.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF"><B>Item 5.06 Change in Shell Company Status</B></FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">The Company is no longer a shell company, as defined in Rule 12b-2 under the Securities Exchange of 1934, because the Company has begun conducting operations as more fully described under Item 1.01.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Section 9 - Financial Statements and Exhibits</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF"><B>Item 9.01&nbsp; Financial Statements and Exhibits</B></FONT><FONT style="background-color:#FFFFFF">.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">(c) Exhibits</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=73.867 /><TD width=9.2 /><TD /></TR>
<TR><TD style="margin-top:0px; border-bottom:2px solid #000000" valign=bottom width=73.867><P style="margin:0px"><B>Exhibit No.</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=9.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:2px solid #000000" valign=bottom><P style="margin:0px"><B>Description</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=73.867><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=9.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=73.867><P style="margin:0px">Exhibit&nbsp;10.1</P>
</TD><TD style="margin-top:0px" valign=top width=9.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px">Asset and Intellectual Property Purchase Agreement. dated March 25, 2014</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><FONT style="background-color:#FFFFFF"><B><U>SIGNATURES</U></B></FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">Pursuant to the requirements of the Securities Exchange Act of 1934,&nbsp;the Registrant has duly caused this report to be signed on its behalf by the&nbsp;undersigned hereunto duly authorized.</FONT></P>
<P style="margin:0px"><FONT style="background-color:#FFFFFF">&nbsp;</FONT></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD /><TD width=19.267 /><TD width=258.2 /><TD width=82.8 /></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px">Date:&nbsp;&nbsp;&nbsp;March 27, 2014</P>
</TD><TD style="margin-top:0px" valign=top width=277.467 colspan=2><P style="margin:0px">SmartData Corporation</P>
</TD><TD style="margin-top:0px" valign=top width=82.8><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=277.467 colspan=2><P style="margin:0px">(Registrant)</P>
</TD><TD style="margin-top:0px" valign=top width=82.8><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=19.267><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=258.2><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=82.8><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=19.267><P style="margin:0px">By:</P>
</TD><TD style="margin-top:0px" valign=top width=258.2><P style="margin:0px"><I><U>/s/ S. Matthew Schultz</U></I></P>
</TD><TD style="margin-top:0px" valign=top width=82.8><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=19.267><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=258.2><P style="margin:0px">S. Matthew Schultz, Chief Executive Officer</P>
</TD><TD style="margin-top:0px" valign=top width=82.8><P style="margin:0px">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin-top:0px; margin-bottom:12.2px"><BR></P>
</DIV></BODY>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>f8k032714_ex10z1.htm
<DESCRIPTION>EXHIBIT 10.1 PURCHASE AGREEMENT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 10.1 Purchase Agreement</TITLE>
<META NAME="author" CONTENT="zach">
<META NAME="date" CONTENT="03/27/2014">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px" align=right><B><U>Exhibit 10.1</U></B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B><I>ASSET AND INTELLECTUAL PROPERTY PURCHASE AGREEMENT</I></B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I>This Asset and Intellectual Property Purchase Agreement, </I>hereinafter referred to as the &quot;Agreement&quot;, is made and executed on the following terms and conditions among:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>SMS Managment Services, LLC</B>, a Nevada Limited Liability Company, whose corporate office is located at 2580 Anthem Village Drive, Henderson, Nevada 89052, hereinafter referred to as &quot;SMS&quot;.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>SmartData Corporation</B>, a Nevada Corporation, whose corporate office is located 1436 Legend Hills Dr. Clearfield, Utah 84532, hereinafter referred to as &quot;SmartData&quot;.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>&quot;SMS and &quot;SMARTDATA&quot; are sometimes hereinafter collectively referred to as the &quot;Parties&quot;, and individually as a&quot;Party&quot;.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Recitals</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify>&quot;SMS&quot; legal owner of certain Intellectual Properties including a downdraft gasifier that produces synthesis gas from municipal waste, sewage, sludge, processing plant renderings, animal manure, and other environmentally troublesome products, hereinafter referred to as &quot;Intellectual Property/Properties&quot;. (<B>Exhibit A</B>)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>&quot;SMARTDATA&quot;, established in 1987, is an company focused on intellectual property research and development. &quot;SMARTDATA&quot; operations include the acquisition, development, marketing and licensing of intellectual properties. Looking to the future, &quot;SMARTDATA&quot; is seeking entry into the alternative fuel arena.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I>Whereas, </I>the &quot;Parties&quot; are desirous of entering into this &quot;Agreement&quot;, wherein &quot;SMARTDATA&quot; will purchase the Intellectual Property/Properties and the prototype unit of &quot;SMS&quot;.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I>Now Therefore, </I>the &quot;Parties&quot; hereby agree as follows:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><B>Offer and Acceptance</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify>The &quot;Parties&quot; specifically offer, accept and agree to all of the terms, conditions, and provisions of this &quot;Agreement&quot;.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><B>Consideration</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify>The consideration of the stock conveyance, acts, mutual promises, covenants and conditions contained herein, and in further consideration of the mutual performance thereof, together with other good and valuable consideration, the receipt thereof, is agreed upon by the &quot;Parties&quot; as legal, adequate, and sufficient.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><B>The &quot;Agreement&quot;</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">1.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Parties</B>: The &quot;Parties&quot; to this &quot;Agreement&quot; are: SMS Management Services, LLC, &nbsp;and SmartData Corporation.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">2.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Sale of Intellectual Property/Properties &amp; Prototype</B>: &quot;SMARTDATA&quot; agrees to purchase all the rights title and interest of the &quot;Intellectual Property/Properties&quot; and the prototype unit of &quot;SMS&quot; for 715,320 shares of &quot;SMARTDATA&quot; $0.001 par value common stock and the assumption of $156,900 in liabilities due to Petersen Incorporated for the engineering and construction of the working prototype of the Gasifier.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">3.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Non Compete Provision</B>: The undersigned &quot;SMS&quot; and each of its signing Members agree not to compete with &quot;SMARTDATA&quot;, or commence, either as an individual or through a new entity, any operation that would be in direct competition with &quot;SMARTDATA&quot; and the licensed &nbsp;&quot;Intellectual Properties&quot; for a period of five (5) years from the date of execution of this &quot;Agreement&quot;.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">4.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Acts, Procedures, and Duties of &quot;SMARTDATA&quot;:</B> &quot;SMARTDATA&quot; is to:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; padding-left:96px" align=justify>4.01 Conduct and perform the terms and conditions as set-forth in this &quot;Agreement&quot; with the utmost professionalism, honesty, and forthrightness as is mandated by industry standards pertaining to this undertaking.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:96px" align=justify>4.02 Upon execution of this &quot;Agreement&quot;, &quot;SMARTDATA&quot; will immediately commence funding for further engineering and testing of the working prototype of the gasifier.</P>
<P style="margin:0px" align=justify><BR></P>
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<P style="margin:0px; padding-left:96px" align=justify>4.03 Continually oversee, maintain protect, preserve and safeguard the &quot;SMS&quot; &quot;Intellectual Properties&quot;.</P>
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<P style="margin:0px; padding-left:96px" align=justify>4.04 Be responsible for complying with all laws, in particular with those laws applicable to the activities described under this &quot;Agreement&quot;.</P>
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<P style="margin:0px; padding-left:96px" align=justify>4.05 Use its best efforts to effectuate and comply with all of the terms and conditions of this &quot;Agreement&quot;, and with all laws of the respective countries involved.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">5.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Time of Essence</B>: The &quot;Parties&quot; agree that time is of the essence in executing <I>this </I>&quot;Agreement&quot;</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">6.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Waiver</B>. No delay or omission on the part of &quot;Parties&quot; in exercising any right hereunder shall operate as a waiver of such right or any other right. A waiver by the &quot;Parties&quot; of a provision of <I>this </I>&quot;Agreement&quot; shall not prejudice or constitute a waiver of the &quot;Party's&quot; right otherwise to demand strict compliance with that provision or any other provision of this &quot;Agreement&quot;.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">7.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Execution Venue and Choice of Law</B>. <I>This </I>&quot;Agreement&quot; is executed and entered into and governed &nbsp;by the laws of the State of Nevada as to any dispute or unresolved issue.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">8.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Severability</B>. If a court of competent jurisdiction finds any provision of this &quot;Agreement&quot; to be invalid or unenforceable as to any circumstance, such finding shall not render that provision invalid or unenforceable as to any other circumstances. If feasible, any such offending provision shall be deemed modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">9.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Commissions and Fees</B>. The &quot;Parties&quot; represent and acknowledge that there are no fees or commissions to be paid to any person or entity resulting from the execution and entry of the &quot;Parties&quot; into this&quot; Agreement&quot;.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">10.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Taxes</B>. The &quot;Parties&quot; agree that each &quot;Party&quot; shall be individually and respectively responsible for any and all taxes from Federal, State or local that otherwise that might be owed accessed to a &quot;Party&quot;, and each &quot;Party&quot; agrees to hold the other &quot;Parties&quot; harmless from any collection process of any said tax.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">11.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Litigation.</B> Each &quot;Party&quot; states that there are no lawsuits, proceedings, or governmental investigations pending or threatened against them.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">12.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Agreement Not Unconscionable</B>. It is agreed by &quot;Parties&quot; that the terms and conditions of the &quot;Agreement&quot; are not unconscionable to any &quot;Party&quot;.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">13.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Entire Agreement</B>. <I>This </I>instrument embodies the whole agreement of the &quot;Parties&quot;. There are no promises, terms, conditions, or obligations other than those contained herein. <I>This </I>&quot;Agreement&quot; supersedes all previous communications, representations, or agreements, either verbal or written between the &quot;Parties&quot; hereto. Any agreement entered into between &quot;Parties&quot; after the date of this &quot;Agreement&quot;, must be in writing, signed by the &quot;Parties&quot; hereto, and added to this &quot;Agreement&quot; as an addendum.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">14.</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify><B>Authority and Binding Effect. </B>The execution, delivery, and performance of this &quot;Agreement&quot; by the &quot;Parties&quot; have been duly authorized by all necessary action of the respective entities/companies all are enforceable in accordance with their terms. Such execution, delivery, and performance do not require the consent or approval of any other person or governmental agency or authority. Each signing Party has the capacity and authority to execute this &quot;Agreement&quot;. This &quot;Agreement&quot; is binding upon the &quot;Parties&quot; hereto, and is legally enforceable in accordance with the respective terms hereof.</P>
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<P style="margin:0px; page-break-before:always" align=justify><B>IN WITNESS WHEREOF, </B>the &quot;Parties&quot; have caused this &quot;Agreement&quot; to be duly authorized and executed on the day, month and year hereinafter set-forth.</P>
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<P style="margin:0px" align=justify><B>SMS Managment, LLC</B></P>
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<P style="margin-top:0px; margin-bottom:-2px; width:336px; float:left"><B>By: </B><I><U>/s/ Sherree Schultz</U></I></P>
<P style="margin:0px; text-indent:-2px" align=justify><B>Dated: </B>March 25, 2014</P>
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<P style="margin:0px" align=justify><B>Title: </B>Manager</P>
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<P style="margin:0px" align=justify><B>SmartData Corporation</B></P>
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<P style="margin-top:0px; margin-bottom:-2px; width:336px; float:left"><B>By: </B><I><U>/s/</U></I><B><I><U> </U></I></B><I><U>Bruce Lyberrt</U></I></P>
<P style="margin:0px; text-indent:-2px" align=justify><B>Dated: </B>March 25, 2014</P>
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<P style="margin:0px" align=justify><B>Title: </B>Director</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:336px; float:left"><B>By: </B><I><U>/s/ Zachary Bradford</U></I></P>
<P style="margin:0px; text-indent:-2px" align=justify><B>Dated: </B>March 25, 2014</P>
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<P style="margin:0px" align=justify><B>Title: </B>Director</P>
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<P style="margin:0px; page-break-before:always" align=center><B>EXHIBIT A</B></P>
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<P style="margin:0px" align=center>Intellectual Property/Properties</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>Patent # 8,105,401 'Parallel Path, Downdraft Gasifier Apparatus and Method' </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; clear:left; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>Patent # 8,518,133 'Parallel Path, Downdraft Gasifier Apparatus and Method' &nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; clear:left; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>32 inch Downdraft Gasifier </P>
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