0001683168-18-001132.txt : 20180501 0001683168-18-001132.hdr.sgml : 20180501 20180501130612 ACCESSION NUMBER: 0001683168-18-001132 CONFORMED SUBMISSION TYPE: 1-A/A PUBLIC DOCUMENT COUNT: 20 FILED AS OF DATE: 20180501 DATE AS OF CHANGE: 20180501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Smart Decision, Inc. CENTRAL INDEX KEY: 0001734669 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 823182235 STATE OF INCORPORATION: WY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 1-A/A SEC ACT: 1933 Act SEC FILE NUMBER: 024-10822 FILM NUMBER: 18794499 BUSINESS ADDRESS: STREET 1: 1825 NW CORPORATE BLVD., SUITE 110 CITY: BOCA RATON STATE: FL ZIP: 33431 BUSINESS PHONE: 877-267-6278 MAIL ADDRESS: STREET 1: 1825 NW CORPORATE BLVD., SUITE 110 CITY: BOCA RATON STATE: FL ZIP: 33431 1-A/A 1 primary_doc.xml 1-A/A LIVE 0001734669 XXXXXXXX 024-10822 Smart Decision, Inc. WY 2017 0001734669 7373 82-3182235 2 2 1825 CORPORATE BLVD. NW, SUITE 110 BOCA RATON FL 33431 877-267-6278 John E. Lux, Esq. Other 4009.00 0.00 0.00 0.00 4009.00 12741.00 0.00 12741.00 -8732.00 4009.00 0.00 12066.00 0.00 -12107.00 -0.00 -0.00 Salberg & Company, P.A. Class A, $0.0001 par value 68400000 0000000na SDEC to be requested none 0 000000000 n/a none 0 000000000 n/a true true Tier2 Audited Equity (common or preferred stock) Y N Y Y N N 527500000 68400000 0.0100 5000000.00 275000.00 27500.00 0.00 5302500.00 Salberg & Company, P.A. 6500.00 John E. Lux, Esq. 25000.00 Various 2500.00 true CO NY Smart Decision, Inc. Common Stock, $0.0001 par value 68400000 0 $6840 based on $0.0001 par value, for employment compensation and for cash. Exempt from registration under 4(2) Securities Act and Rules promulgated thereunder. PART II AND III 2 smart_poc.htm

Table of Contents

 

Preliminary Offering Circular dated May __, 2018

 

An Offering Statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the Offering Statement filed with the Commission is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the Offering Statement in which such Final Offering Circular was filed may be obtained.

 

 

Smart Decision, Inc.

 

$5,000,000

500,000,000 SHARES OF CLASS A COMMON STOCK

OFFERED BY THE COMPANY AT $0.01 PER SHARE

27,500,000 SHARES OFFERED BY SELLING SHAREHOLDERS

 

This is the public offering of securities of Smart Decision, Inc., a Wyoming corporation. We are offering 500,000,000 shares of our common stock, par value $0.0001 ("Common Stock"), at an offering price of $0.01 per share (the "Offered Shares") by the Company. An additional 27,500,000 shares is being offered by Selling Shareholders. This Offering will terminate on twelve months from the day the Offering is qualified, subject to extension for up to thirty (30) days as defined below or the date on which the maximum offering amount is sold (such earlier date, the "Termination Date"). The minimum purchase requirement per investor is 100,000 Offered Shares ($1,000); however, we can waive the minimum purchase requirement on a case-by-case basis in our sole discretion.

 

These securities are speculative securities. Investment in the Company’s stock involves significant risk. You should purchase these securities only if you can afford a complete loss of your investment. See the “Risk Factors” section on page 4 of this Offering Circular.

 

We have a dual class structure for our Common Stock consisting of Class A and Class B Common Stock. Holders of the Class B Common Stock are entitled to elect a majority of the board of directors and the holders of the Class A will elect the remainder of the directors. See “Description of Securities” and “Risk Factors – We have two classes of Common Stock.” This offering is for Class A Common Stock.

 

No Escrow

 

The proceeds of this offering will not be placed into an escrow account. We will offer our Common Stock on a best efforts basis. As there is no minimum offering, upon the approval of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds.

 

Subscriptions are irrevocable and the purchase price is non-refundable as expressly stated in this Offering Circular. The Company, by determination of the Board of Directors, in its sole discretion, may issue the Securities under this Offering for cash, promissory notes, services, and/or other consideration without notice to subscribers. All proceeds received by the Company from subscribers for this Offering will be available for use by the Company upon acceptance of subscriptions for the Securities by the Company. 

 

Generally, no sale may be made to you in this Offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

Sale of these shares will commence within two calendar days of the qualification date and it will be a continuous Offering pursuant to Rule 251(d)(3)(i)(F).

 

This Offering will be conducted on a “best-efforts” basis, which means our Officers will use their commercially reasonable best efforts in an attempt to offer and sell the Shares. Our Officers will not receive any commission or any other remuneration for these sales. In offering the securities on our behalf, the Officers will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934, as amended.

 

This Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the laws of any such state.

 

 

 

   

 

 

We are applying to have our Common Stock is traded in the OTCMarket.

 

Investing in our Common Stock involves a high degree of risk. See “Risk Factors” beginning on page 4 for a discussion of certain risks that you should consider in connection with an investment in our Common Stock.

  

   Per 
Share
  Total 
Maximum
Public Offering Price (1)(2)  $0.01  $5,000,000
Underwriting Discounts and Commissions (3)  $0.00  $0
Proceeds to Company (4)  $0.01  $5,000,000
Proceeds to Selling Shareholders (5)  $0.01  $275,000

  

(1)We are offering shares on a continuous basis. See “Distribution – Continuous Offering.”
(2)This is a “best efforts” offering. The proceeds of this offering will not be placed into an escrow account. We will offer our Common Stock on a best efforts basis primarily through an online platform. As there is no minimum offering, upon the approval of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds. See “How to Subscribe.”
(3)We are offering these securities without an underwriter.
(4)Excludes estimated total offering expenses, including underwriting discount and commissions. Such expenses, will be approximately $500,000 assuming the maximum offering amount is sold.
(5)Includes 27,500,000 shares are being offered by Selling Shareholders. See “Distribution – Selling Shareholders.”

  

Our Board of Directors used its business judgment in setting a value of $0.01 per share to the Company as consideration for the stock to be issued under the Offering. The sales price per share bears no relationship to our book value or any other measure of our current value or worth.

 

No sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or your net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

THE U.S. SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

The date of this Offering Circular is May__, 2018.

 

 

 

   

 

 

TABLE OF CONTENTS

 

   

Page

 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS     1  
SUMMARY     2  
THE OFFERING     3  
RISK FACTORS     4  
USE OF PROCEEDS     13
DILUTION     15  
DISTRIBUTION     16  
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS     19  
BUSINESS     21  
MANAGEMENT     32  
EXECUTIVE COMPENSATION     34  
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS     35  
PRINCIPAL STOCKHOLDERS     37  
DESCRIPTION OF SECURITIES     38  
DIVIDEND POLICY     41  
SECURITIES OFFERED     41  
SHARES ELIGIBLE FOR FUTURE SALE     42  
LEGAL MATTERS     42  
EXPERTS     42  
WHERE YOU CAN FIND MORE INFORMATION     42  
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS   F-1  

 

 

We are offering to sell, and seeking offers to buy, our securities only in jurisdictions where such offers and sales are permitted. You should rely only on the information contained in this Offering Circular. We have not authorized anyone to provide you with any information other than the information contained in this Offering Circular. The information contained in this Offering Circular is accurate only as of its date, regardless of the time of its delivery or of any sale or delivery of our securities. Neither the delivery of this Offering Circular nor any sale or delivery of our securities shall, under any circumstances, imply that there has been no change in our affairs since the date of this Offering Circular. This Offering Circular will be updated and made available for delivery to the extent required by the federal securities laws.

 

In this Offering Circular, unless the context indicates otherwise, references to "Smart Decision", "we", the "Company", "our" and "us" refer to the activities of and the assets and liabilities of the business and operations of Smart Decision, Inc.

 

 

 

 

 

 i 

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

Some of the statements under "Summary", "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Our Business" and elsewhere in this Offering Circular constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential", "should", "will" and "would" or the negatives of these terms or other comparable terminology.

 

You should not place undue reliance on forward looking statements. The cautionary statements set forth in this Offering Circular, including in "Risk Factors" and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things:

 

  · The speculative nature of the business we intend to develop;

 

  · Our reliance on suppliers and customers;

 

  · Our dependence upon external sources for the financing of our operations, particularly given that there are concerns about our ability to continue as a “going concern”;

 

  · Our ability to effectively execute our business plan;

 

  · Our ability to manage our expansion, growth and operating expenses;

 

  · Our ability to finance our businesses;

 

  · Our ability to promote our businesses;

 

  · Our ability to compete and succeed in highly competitive and evolving businesses;

 

  · Our ability to respond and adapt to changes in technology and customer behavior; and

 

  · Our ability to protect our intellectual property and to develop, maintain and enhance strong brands.

 

Although the forward-looking statements in this Offering Circular are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. We undertake no obligation, other than as maybe be required by law, to re-issue this Offering Circular or otherwise make public statements updating our forward-looking statements.

 

 

 

 

 1 

 

 

SUMMARY

 

This summary highlights selected information contained elsewhere in this Offering Circular. This summary is not complete and does not contain all the information that you should consider before deciding whether to invest in our Common Stock. You should carefully read the entire Offering Circular, including the risks associated with an investment in the company discussed in the “Risk Factors” section of this Offering Circular, before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section entitled "Cautionary Statement Regarding Forward-Looking Statements."

 

Company Information

 

The Company, sometimes referred to herein as "we," "us,” “our," and the "Company" and/or "Smart Decision" was incorporated on September 5, 2017 under the laws of the State of Wyoming, to engage in any lawful corporate undertaking. Our fiscal year-end date is December 31.

 

Smart Decision, Inc. offices are located at 1825 Corporate Boulevard NW, Suite 110, Boca Raton, Florida 33431. Our Website is http://www.smartdecisioninc.com. Our telephone number is 877-267-6278 and our Email address is adam@smartdecisioninc.com.

 

 

We do not incorporate the information on or accessible through our website into this Offering Circular, and you should not consider any information on, or that can be accessed through, our website a part of this Offering Circular.

 

Section 15(g) of the Securities Exchange Act of 1934

 

Our shares are covered by section 15(g) of the Securities Exchange Act of 1934, as amended that imposes additional sales practice requirements on broker/dealers who sell such securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses). For transactions covered by the Rule, the broker/dealer must make a special suitability determination for the purchase and have received the purchaser’s written agreement to the transaction prior to the sale. Consequently, the Rule may affect the ability of broker/dealers to sell our securities and also may affect your ability to sell your shares in the secondary market.

 

Section 15(g) also imposes additional sales practice requirements on broker/dealers who sell penny securities. These rules require a one-page summary of certain essential items. The items include the risk of investing in penny stocks in both public offerings and secondary marketing; terms important to in understanding of the function of the penny stock market, such as bid and offer quotes, a dealers spread and broker/dealer compensation; the broker/dealer compensation, the broker/dealers’ duties to its customers, including the disclosures required by any other penny stock disclosure rules; the customers’ rights and remedies in cases of fraud in penny stock transactions; and, the FINRA’s toll free telephone number and the central number of the North American Administrators Association, for information on the disciplinary history of broker/dealers and their associated persons.

 

Dividends

 

The Company has not declared or paid a cash dividend to stockholders since it was organized and does not intend to pay dividends in the foreseeable future. The board of directors presently intends to retain any earnings to finance our operations and does not expect to authorize cash dividends in the foreseeable future. Any payment of cash dividends in the future will depend upon the Company's earnings, capital requirements and other factors.

 

Trading Market

 

We are applying to have our Common Stock trades in the OTC Market Pink Open Market.

 

 

 

 2 

 

 

THE OFFERING

______

 

 

Issuer:   Smart Decision, Inc.
     
Securities offered:   A maximum of 500,000,000 shares of our common stock, par value $0.0001 (“Common Stock”) at an offering price of $0.01 per share (the “Offered Shares”). (See “Distribution.”)
     
    An additional 27,500,000 shares are being offered by selling shareholders. The Company will not receive any of the proceeds of these sales.
     
Number of shares of Common Stock outstanding before the offering   68,400,000 issued and outstanding as of February 28, 2018
     
Number of shares of Common Stock to be outstanding after the offering   568,400,000 shares, if the maximum amount of Offered Shares are sold
     
Price per share:   $0.01
     
Maximum offering amount:   500,000,000 shares at $0.01 per share, or $5,000,000 (See “Distribution.”) An additional 27,500,000 shares are being offered by selling shareholders. The Company will not receive any of the proceeds of these sales.
     
Trading Market:   We intend to apply to have our Common Stock trading on the OTC Markets.

 

Use of proceeds:   If we sell all of the shares being offered, our net proceeds (after our estimated offering expenses) will be $4,500,000. We will use these net proceeds for working capital and other general corporate purposes.
     
Risk factors:  

Investing in our Common Stock involves a high degree of risk, including:

 

Immediate and substantial dilution.

 

Limited market for our stock.

 

Limited operational history in an emerging industry.

 

 

See “Risk Factors.”

 

 

 

 

 

 

 

 

 

 

 

 3 

 

 

RISK FACTORS

______

 

The following is only a brief summary of the risks involved in investing in our Company. Investment in our Securities involves risks. You should carefully consider the following risk factors in addition to other information contained in this Disclosure Document. The occurrence of any of the following risks might cause you to lose all or part of your investment. Some statements in this Document, including statements in the following risk factors, constitute “Forward-Looking Statements.”

  

The price of our common stock may be volatile.

 

If we are able to get a trading market for our stock, the trading price of our common stock is likely to remain highly volatile and could be subject to wide fluctuations in response to various factors, some of which are beyond our control or unrelated to our operating performance. In addition to the factors discussed in this “Risk Factors” section and elsewhere, these factors include: the operating performance of similar companies; the overall performance of the equity markets; the announcements by us or our competitors of acquisitions, business plans, or commercial relationships; threatened or actual litigation; changes in laws or regulations relating to the provision of health care or the sale of health insurance; any major change in our board of directors or management; publication of research reports or news stories about us, our competitors, or our industry or positive or negative recommendations or withdrawal of research coverage by securities analysts; large volumes of sales of our shares of common stock by existing stockholders; and general political and economic conditions.

 

In addition, the stock market in general, and the market for developing companies in particular, has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those companies’ securities This litigation, if instituted against us, could result in very substantial costs; divert our management’s attention and resources; and harm our business, operating results, and financial condition.

 

 

Certain provisions of our Articles of Incorporation may affect us and make it more difficult to acquire us.

 

Certain provisions of our Articles of Incorporation and By-Laws may make it more difficult and time consuming to acquire us. This may reduce our vulnerability to an unsolicited proposal for our takeover. These provisions are outlined below. See “Company Securities -- Certain Provisions.” Our Articles also contain restrictions regarding certain mergers, consolidations, asset sales and other “Business Combinations.” “Business Combinations” are defined in the Articles of Incorporation. The above provisions could have the effect of depriving shareholders of any opportunity to sell their shares at a premium over any prevailing market price because takeovers frequently involve purchases of stock directly from shareholders at such a premium price. Further, to the extent these provisions make it less likely that a takeover attempt opposed by our incumbent board of directors and management will succeed; the effect could be to assist the board of directors and management in retaining their existing positions. In addition, our Articles also provide that the provisions outlined herein cannot be amended, altered, repealed, or replaced without a “super-majority” vote or the approval of a Majority of Continuing Directors. See “Company Securities.”

 

Among other provisions that might make it more difficult to acquire us, we have adopted the following:

 

Staggered Board. Our Board of Directors has been divided into three classes of directors. The term of one class will expire each year. Directors for each class will be chosen for a three-year term upon the expiration of such class’s term, and the directors in the other two classes will continue in office. The staggered terms for directors may affect the stockholders’ ability to change control of the Company even if a change in control were in the stockholders’ interest. See “Company Securities.”

 

Preferred Stock. Our charter authorizes the Board of Directors to issue up to 1,000,000,000 shares of Preferred Stock and to establish the preferences and rights (including the right to vote and the right to convert into shares of Common Stock) of any shares issued. The power to issue Preferred Stock could have the effect of delaying or preventing a change in control of the Company even if a change in control were in the stockholders’ interest. See “Company Securities.”

 

We have two classes of Common Stock.

 

We have a dual class structure for our Common Stock consisting of Class A and Class B Common Stock. Holders of the Class B Common Stock are entitled to elect a majority of the board of directors and the holders of the Class A will elect the remainder of the directors. Investors in this offering will be purchasing Class A Common Stock. Our control shareholders own all of the Class B Common Stock and thus will have the right to elect a majority of the board of directors. See “Description of Securities – The Common Stock.“

 

 

 4 

 

  

Our By-Laws include a mandatory arbitration provision which may discourage shareholder litigation and enforcement of shareholder rights.

 

Our By-Laws include a mandatory arbitration provision which may discourage shareholder litigation and enforcement of shareholder rights. The By-Laws provide that any disagreement, dispute, controversy or claim arising out of or relating to the Company Agreement shall be settled by final and binding arbitration administered by the America Arbitration Association in Boca Raton, Florida. Further, neither the Claiming Party nor the Company nor the arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all parties. This may have the effect of discouraging shareholder litigation and enforcement of shareholder rights.

 

Doubts About Ability to Continue as a Going Concern

 

The Company is an early stage enterprise and has not commenced planned principal operations. The Company had no revenues to date and minimal capitalization. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

There can be no assurance that sufficient funds required during the next year or thereafter will be generated from operations or that funds will be available from external sources, such as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability to generate cash flow from operations, or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Company’s existing stockholders.

 

The Company intends to overcome the circumstances that impact its ability to remain a going concern through a combination of the commencement of revenues, with interim cash flow deficiencies being addressed through additional equity and debt financing. The Company anticipates raising additional funds through public or private financing, strategic relationships or other arrangements in the near future to support its business operations; however, the Company may not have commitments from third parties for a sufficient amount of additional capital. The Company cannot be certain that any such financing will be available on acceptable terms, or at all, and its failure to raise capital when needed could limit its ability to continue its operations. The Company’s ability to obtain additional funding will determine its ability to continue as a going concern. Failure to secure additional financing in a timely manner and on favorable terms would have a material adverse effect on the Company’s financial performance, results of operations and stock price and require it to curtail or cease operations, sell off its assets, seek protection from its creditors through bankruptcy proceedings, or otherwise. Furthermore, additional equity financing may be dilutive to the holders of the Company’s common stock, and debt financing, if available, may involve restrictive covenants, and strategic relationships, if necessary to raise additional funds, and may require that the Company relinquish valuable rights. Please see Financial Statements – Note 1. Nature of Operations and Basis of Presentation – Going Concern for further information.

 

Risks Relating to Our Financial Condition

 

Our management has a limited experience operating a public company and are subject to the risks commonly encountered by early-stage companies.

 

Although management of Smart Decision, Inc. has experience in operating small companies, current management has not had to manage expansion while being a public company. Many investors may treat us as an early-stage company. In addition, management has not overseen a company with large growth. Because we have a limited operating history, our operating prospects should be considered in light of the risks and uncertainties frequently encountered by early-stage companies in rapidly evolving markets. These risks include:

 

·risks that we may not have sufficient capital to achieve our growth strategy;
   
·risks that we may not develop our product and service offerings in a manner that enables us to be profitable and meet our customers’ requirements;
   
·risks that our growth strategy may not be successful; and
   
·risks that fluctuations in our operating results will be significant relative to our revenues.

 

These risks are described in more detail below. Our future growth will depend substantially on our ability to address these and the other risks described in this section. If we do not successfully address these risks, our business could be significantly harmed.

 

We have limited operational history in an emerging industry, making it difficult to accurately predict and forecast business operations.

 

As we have little or no operational history and have yet to generate revenue, it is extremely difficult to make accurate predictions and forecasts on our finances. This is compounded by the fact that we operate in transforming industries. There is no guarantee that our products or services will remain attractive to potential and current users as these industries undergo rapid change, or that potential customers will utilize our services.

 

 

 

 5 

 

 

As a growing company, we have yet to achieve a profit and may not achieve a profit in the near future, if at all.

 

We have not yet produced a net profit and may not in the near future, if at all. While we expect our revenue to grow, we have not achieved profitability and cannot be certain that we will be able to sustain our growth rate or realize sufficient revenue to achieve profitability. Our ability to continue as a going concern may be dependent upon raising capital from financing transactions, increasing revenue throughout the year and keeping operating expenses below our revenue levels in order to achieve positive cash flows, none of which can be assured.

 

We will require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.

 

We intend to continue to make investments to support our business growth and may require additional funds to respond to business challenges, including the need to update our technology, improve our operating infrastructure or acquire complementary businesses and technologies. Accordingly, we will need to engage in continued equity or debt financings to secure additional funds. If we raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences and privileges superior to those of our common stock. Any debt financing that we secure in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. We may not be able to obtain additional financing on terms favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our business growth and to respond to business challenges could be impaired, and our business may be harmed.

 

We are highly dependent on the services of our key executives, the loss of whom could materially harm our business and our strategic direction. If we lose key management or significant personnel, cannot recruit qualified employees, directors, officers, or other personnel or experience increases in our compensation costs, our business may materially suffer.

 

We are highly dependent on our management, specifically Mr. Adam Green and Mr. Eric Gutmann. As of March 1, 2018, we have Employment Agreements in place with Mr. Green and Mr. Gutmann. If we lose key employees, our business may suffer. Furthermore, our future success will also depend in part on the continued service of our management personnel and our ability to identify, hire, and retain additional key personnel. We do not carry “key-man” life insurance on the lives of any of our executives, employees or advisors. We experience intense competition for qualified personnel and may be unable to attract and retain the personnel necessary for the development of our business. Because of this competition, our compensation costs may increase significantly.

 

We may be unable to manage growth, which may impact our potential profitability.

 

Successful implementation of our business strategy requires us to manage our growth. Growth could place an increasing strain on our management and financial resources. To manage growth effectively, we will need to:

 

·Establish definitive business strategies, goals and objectives;
   
·Maintain a system of management controls; and
   
·Attract and retain qualified personnel, as well as develop, train, and manage management-level and other employees.

 

If we fail to manage our growth effectively, our business, financial condition, or operating results could be materially harmed, and our stock price may decline.

 

We operate in a highly competitive environment, and if we are unable to compete with our competitors, our business, financial condition, results of operations, cash flows and prospects could be materially adversely affected.

 

We operate in a highly competitive environment. Our competition includes all other companies that are in the business of lighting and home supply related technologies. A highly competitive environment could materially adversely affect our business, financial condition, results of operations, cash flows and prospects.

 

We may not be able to compete successfully with other established companies offering the same or similar services and, as a result, we may not achieve our projected revenue and user targets.

 

If we are unable to compete successfully with other businesses in our existing market, we may not achieve our projected revenue and/or customer targets. We compete with both start-up and established lighting and home supply companies. Compared to our business, some of our competitors may have greater financial and other resources, have been in business longer, have greater name recognition and be better established in our markets.

 

 

 

 6 

 

 

We expect to incur substantial expenses to meet our reporting obligations as a public company. In addition, failure to maintain adequate financial and management processes and controls could lead to errors in our financial reporting and could harm our ability to manage our expenses.

 

We estimate that it will cost approximately $50,000 annually to maintain the proper management and financial controls for our filings required as a public reporting company. In addition, if we do not maintain adequate financial and management personnel, processes and controls, we may not be able to accurately report our financial performance on a timely basis, which could cause a decline in our stock price and adversely affect our ability to raise capital.

 

Risks Relating to our Common Stock and Offering

 

If we are able to develop a market for our Common Stock, our Common Stock may be thinly traded, so you may be unable to sell at or near ask prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate your shares.

 

If we are able to develop a market for our Common Stock, it may be thinly traded on the OTC Pink Open Market, meaning that the number of persons interested in purchasing our shares at, or near ask prices at any given time, may be relatively small or non-existent. This situation is attributable to a number of factors, including the fact that we are a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven company such as ours or purchase or recommend the purchase of our shares until such time as we became more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer, which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share price. We cannot give you any assurance that a broader or more active public trading market for our common shares will develop or be sustained, or that current trading levels will be sustained.

 

The market price for the common stock may be particularly volatile given our status as a relatively unknown company with a small and thinly traded public float, limited operating history, and lack of revenue, which could lead to wide fluctuations in our share price. The price at which you purchase our shares may not be indicative of the price that will prevail in the trading market. You may be unable to sell your common shares at or above your purchase price, which may result in substantial losses to you.

 

The market for our shares of common stock may be characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. The volatility in our share price is attributable to a number of factors. First, as noted above, our shares may be sporadically traded. As a consequence of this lack of liquidity, the trading of relatively small quantities of shares may disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously in the event that a large number of our shares is sold on the market without commensurate demand, as compared to a seasoned issuer which could better absorb those sales without adverse impact on its share price. Secondly, we are a speculative investment due to, among other matters, our limited operating history and lack of revenue or profit to date, and the uncertainty of future market acceptance for our potential products. As a consequence of this enhanced risk, more risk-averse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the securities of a seasoned issuer. The following factors may add to the volatility in the price of our shares: actual or anticipated variations in our quarterly or annual operating results; government regulations, announcements of significant acquisitions, strategic partnerships or joint ventures; our capital commitments and additions or departures of our key personnel. Many of these factors are beyond our control and may decrease the market price of our shares regardless of our operating performance. We cannot make any predictions or projections as to what the prevailing market price for our shares will be at any time, including as to whether our shares will sustain their current market prices, or as to what effect the sale of shares or the availability of shares for sale at any time will have on the prevailing market price.

 

Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The possible occurrence of these patterns or practices could increase the volatility of our share price.

 

 

 

 7 

 

 

The market price of our common stock may be volatile and adversely affected by several factors.

 

The market price of our common stock could fluctuate significantly in response to various factors and events, including, but not limited to:

 

·our ability to market our products and services;
   
·our ability to execute our business plan;
   
·operating results below expectations;
   
·our issuance of additional securities, including debt or equity or a combination thereof;
   
·announcements of technological innovations or new products by us or our competitors;
   
·loss of any strategic relationship;
   
·industry developments, including, without limitation, changes in healthcare policies or practices;
   
·economic and other external factors;
   
·period-to-period fluctuations in our financial results; and
   
·whether an active trading market in our common stock develops and is maintained.

 

In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our common stock. Issuers using the Alternative Reporting standard for filing financial reports with OTC Markets are often subject to large volatility unrelated to the fundamentals of the company.

 

Natural disasters and geo-political events could adversely affect our business.

 

Natural disasters, including hurricanes, cyclones, typhoons, tropical storms, floods, earthquakes and tsunamis, weather conditions, including winter storms, droughts and tornadoes, whether as a result of climate change or otherwise, and geo-political events, including civil unrest or terrorist attacks, that affect us, or other service providers could adversely affect our business.

 

We do not expect to pay dividends in the future; any return on investment may be limited to the value of our common stock.

 

We do not currently anticipate paying cash dividends in the foreseeable future. The payment of dividends on our common stock will depend on earnings, financial condition and other business and economic factors affecting it at such time as the board of directors may consider relevant. Our current intention is to apply net earnings, if any, in the foreseeable future to increasing our capital base and development and marketing efforts. There can be no assurance that the Company will ever have sufficient earnings to declare and pay dividends to the holders of our common stock, and in any event, a decision to declare and pay dividends is at the sole discretion of our board of directors. If we do not pay dividends, our common stock may be less valuable because a return on your investment will only occur if its stock price appreciates.

 

Our issuance of additional shares of Common Stock, or options or warrants to purchase those shares, would dilute your proportionate ownership and voting rights.

 

We are entitled under our articles of incorporation to issue up to 5,000,000,000 shares of common stock. We have issued and outstanding, as of the date of this Offering Circular, 68,400,000 shares of common stock. In addition, we are entitled under our Articles of Incorporation to issue up to 1,000,000,000 “blank check” preferred stock, none of which is presently issued or outstanding. Our board may generally issue shares of common stock, preferred stock, options, or warrants to purchase those shares, without further approval by our shareholders based upon such factors as our board of directors may deem relevant at that time. It is likely that we will be required to issue a large amount of additional securities to raise capital to further our development. It is also likely that we will issue a large amount of additional securities to directors, officers, employees and consultants as compensatory grants in connection with their services, both in the form of stand-alone grants or under our stock plans. We cannot give you any assurance that we will not issue additional shares of common stock, or options or warrants to purchase those shares, under circumstances we may deem appropriate at the time.

 

 

 

 8 

 

 

The elimination of monetary liability against our directors, officers and employees under our Articles of Incorporation and the existence of indemnification rights to our directors, officers and employees may result in substantial expenditures by our company and may discourage lawsuits against our directors, officers and employees.

 

Our Articles of Incorporation contains provisions that eliminate the liability of our directors for monetary damages to our company and shareholders. Our bylaws also require us to indemnify our officers and directors. We may also have contractual indemnification obligations under our agreements with our directors, officers and employees. The foregoing indemnification obligations could result in our company incurring substantial expenditures to cover the cost of settlement or damage awards against directors, officers and employees that we may be unable to recoup. These provisions and resulting costs may also discourage our company from bringing a lawsuit against directors, officers and employees for breaches of their fiduciary duties, and may similarly discourage the filing of derivative litigation by our shareholders against our directors, officers and employees even though such actions, if successful, might otherwise benefit our company and shareholders.

 

We may become involved in securities class action litigation that could divert management’s attention and harm our business.

 

The stock market in general, and the shares of early stage companies in particular, have experienced extreme price and volume fluctuations. These fluctuations have often been unrelated or disproportionate to the operating performance of the companies involved. If these fluctuations occur in the future, the market price of our shares could fall regardless of our operating performance. In the past, following periods of volatility in the market price of a particular company’s securities, securities class action litigation has often been brought against that company. If the market price or volume of our shares suffers extreme fluctuations, then we may become involved in this type of litigation, which would be expensive and divert management’s attention and resources from managing our business.

 

As a public company, we may also from time to time make forward-looking statements about future operating results and provide some financial guidance to the public markets. Our management has limited experience as a management team in a public company and as a result, projections may not be made timely or set at expected performance levels and could materially affect the price of our shares. Any failure to meet published forward-looking statements that adversely affect the stock price could result in losses to investors, stockholder lawsuits or other litigation, sanctions or restrictions issued by the SEC.

 

Our common stock will be deemed a “penny stock,” which will make it more difficult for our investors to sell their shares.

 

The SEC has adopted Rule 15g-9 which establishes the definition of a “penny stock,” for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require that a broker or dealer approve a person’s account for transactions in penny stocks, and the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.

 

In order to approve a person’s account for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience objectives of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

 

The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to the penny stock market, which, in highlight form sets forth the basis on which the broker or dealer made the suitability determination, and that the broker or dealer received a signed, written agreement from the investor prior to the transaction.

 

Generally, brokers may be less willing to execute transactions in securities subject to the “penny stock” rules. This may make it more difficult for investors to dispose of our common stock if and when such shares are eligible for sale and may cause a decline in the market value of its stock.

 

Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading, and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities, and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stock.

 

 

 

 9 

 

 

As an issuer of a “penny stock,” the protection provided by the federal securities laws relating to forward-looking statements does not apply to us.

 

Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.

 

As an issuer not required to make reports to the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, holders of restricted shares may not be able to sell shares into the open market as Rule 144 exemptions may not apply.

 

Under Rule 144 of the Securities Act of 1933, holders of restricted shares may avail themselves of certain exemptions from registration if the holder and the issuer meet certain requirements. As a company that is not required to file reports under Section 13 or 15(d) of the Securities Exchange Act, referred to as a non-reporting company, we may not, in the future, meet the requirements for an issuer under 144 that would allow a holder to qualify for Rule 144 exemptions. In such an event, holders of restricted stock would have to utilize another exemption from registration or rely on a registration statement to be filed by the Company registering the restricted stock. Although the Company currently plans to file either a Form 10 or S-1 with the Commission upon the conclusion of the Regulation A offering, there can be no guarantee that the Company will be able to fulfill one of these registration statements, which could have an adverse effect on our shareholders.

 

Securities analysts may elect not to report on our common stock or may issue negative reports that adversely affect the stock price.

 

At this time, no securities analysts provide research coverage of our common stock, and securities analysts may not elect to provide such coverage in the future. It may remain difficult for our company, with its small market capitalization, to attract independent financial analysts that will cover our common stock. If securities analysts do not cover our common stock, the lack of research coverage may adversely affect the stock’s actual and potential market price. The trading market for our common stock may be affected in part by the research and reports that industry or financial analysts publish about our business. If one or more analysts elect to cover our company and then downgrade the stock, the stock price would likely decline rapidly. If one or more of these analysts cease coverage of our company, we could lose visibility in the market, which, in turn, could cause our stock price to decline. This could have a negative effect on the market price of our common stock.

 

A reverse stock split may decrease the liquidity of the shares of our common stock.

 

The liquidity of the shares of our common stock may be adversely affected by a reverse stock split given the reduced number of shares that will be outstanding following a reverse stock split, especially if the market price of our common stock does not increase as a result of the reverse stock split.

 

Following a reverse stock split, the resulting market price of our common stock may not attract new investors, including institutional investors, and may not satisfy the investing requirements of those investors. Consequently, the trading liquidity of our common stock may not improve.

 

Although we believe that a higher market price of our common stock may help generate greater or broader investor interest, we cannot assure you that a reverse stock split will result in a share price that will attract new investors.

 

We are classified as an “emerging growth company” as well as a “smaller reporting company” and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies will make our common stock less attractive to investors.

 

We are an “emerging growth company,” as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

 

 

 

 10 

 

 

Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have irrevocably opted out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act.

 

We could remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, and (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

 

Notwithstanding the above, we are also currently a “smaller reporting company.” Specifically, similar to “emerging growth companies,” “smaller reporting companies” are able to provide simplified executive compensation disclosures in their filings; are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that independent registered public accounting firms provide an attestation report on the effectiveness of internal control over financial reporting; and have certain other decreased disclosure obligations in their SEC filings. Decreased disclosures in our SEC filings due to our status as an “emerging growth company” or “smaller reporting company” may make it harder for investors to analyze our results of operations and financial prospects.

 

Because directors and officers currently and for the foreseeable future will continue to control Smart Decision, Inc., it is not likely that you will be able to elect directors or have any say in the policies of Smart Decision, Inc.

 

Our shareholders are not entitled to cumulative voting rights. Consequently, the election of directors and all other matters requiring shareholder approval will be decided by majority vote. The directors, officers and affiliates of Smart Decision, Inc. beneficially own approximately 52.1% of our outstanding common stock voting rights. Due to such significant ownership position held by our insiders, new investors may not be able to affect a change in our business or management, and therefore, shareholders would have no recourse as a result of decisions made by management.

 

In addition, sales of significant amounts of shares held by our directors, officers or affiliates, or the prospect of these sales, could adversely affect the market price of our common stock. Management’s stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.

 

Since we intend to retain any earnings for development of our business for the foreseeable future, you will likely not receive any dividends for the foreseeable future.

 

We have never declared or paid any cash dividends or distributions on our capital stock. We currently intend to retain our future earnings to support operations and to finance expansion and therefore we do not anticipate paying any cash dividends on our common stock in the foreseeable future.

 

Risks Relating to Our Company and Industry

 

The following risks relate to our proposed business and the effects upon us assuming we obtain financing in a sufficient amount.

 

Intellectual property rights claims may adversely affect an investment in us.

 

We are not aware of any intellectual property claims that may prevent us from operating; however, third parties may assert intellectual property claims relating to our technology. Regardless of the merit of an intellectual property or other legal action, any legal expenses to defend or payments to settle such claims would be extremely expensive and be borne by us. Additionally, a meritorious intellectual property claim could prevent us from operating and force us to liquidate. As a result, an intellectual property claim against us could adversely affect an investment in us.

 

 

 

 11 

 

 

Statements Regarding Forward-looking Statements

______

 

 

This Disclosure Statement contains various "forward-looking statements." You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "would," "could," “should," "seeks," "approximately," "intends," "plans," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements may be impacted by a number of risks and uncertainties.

 

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. You should carefully consider these risks before you make an investment decision with respect to our Securities. For a further discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled "Risk Factors."

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 12 

 

 

USE OF PROCEEDS

 

If we sell all of the shares being offered, our net proceeds (after our estimated offering expenses of $500,000) will be $4,500,000. We will use these net proceeds for:

 

If 25% of the Shares offered are sold:

 

Percentage of
Offering Sold
Offering
Proceeds
Approximate
Offering
Expenses
Total Net
Offering
Proceeds
Principal Uses
of Net
Proceeds
        Development costs $275,000
        Payroll $250,000
        Selling, general and administrative costs  $300,000
        Marketing $100,000
        Kiosks/tablets and in-store trials  $0
        Travel/trade show costs $100,000
        Working capital $100,000
25.00% $1,250,000 $125,000 $1,125,000  

 

 

If 50% of the Shares offered are sold:

 

Percentage of
Offering Sold
Offering
Proceeds
Approximate
Offering
Expenses
Total Net
Offering
Proceeds
Principal Uses
of Net
Proceeds
        Development costs $700,000
        Payroll $300,000
        Selling, general and administrative costs  $375,000
        Marketing $275,000
        Kiosks/tablets and in-store trials  $150,000
        Travel/trade show costs $150,000
        Working capital $300,000
50.00% $2,500,000 $250,000 $2,250,000  

 

 

If 75% of the Shared offered are sold:

 

Percentage of
Offering Sold
Offering
Proceeds
Approximate
Offering
Expenses
Total Net
Offering
Proceeds
Principal Uses
of Net
Proceeds
        Development costs $800,000
        Payroll $400,000
        Selling, general and administrative costs  $550,000
        Marketing $475,000
        Kiosks/tablets and in-store trials  $300,000
        Travel/trade show costs $225,000
        Working capital $625,000
75.00% $3,750,000 $375,000 $3,375,000  

 

 

 

 

 13 

 

 

If 100% of the Shares offers are sold:

 

Percentage of
Offering Sold
Offering
Proceeds
Approximate
Offering
Expenses
Total Net
Offering
Proceeds
Principal Uses
of Net
Proceeds
        Development costs $1,000,000
        Payroll $500,000
        Selling, general and administrative costs  $650,000
        Marketing $675,000
        Kiosks/tablets and in-store trials  $425,000
        Travel/trade show costs $350,000
        Working capital $900,000
100.00% $5,000,000 $500,000 $4,500,000  

 

The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors.

 

As indicated in the table above, if we sell only 75%, or 50%, or 25% of the shares offered for sale in this offering, we would expect to use the resulting net proceeds for the same purposes as we would use the net proceeds from a sale of 100% of the shares, and in approximately the same proportions, until such time as such use of proceeds would leave us without working capital reserve. At that point we would expect to modify our use of proceeds by limiting our expansion, leaving us with the working capital reserve indicated.

 

The expected use of net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital, may vary significantly depending on numerous factors. The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering.

 

In the event we do not sell all of the shares being offered, we may seek additional financing from other sources in order to support the intended use of proceeds indicated above. If we secure additional equity funding, investors in this offering would be diluted. In all events, there can be no assurance that additional financing would be available to us when wanted or needed and, if available, on terms acceptable to us.

 

 

 

 

 

 

 

 

 

 

 

 

 14 

 

 

DILUTION

______

 

 

If you purchase shares in this offering, your ownership interest in our Common Stock will be diluted immediately, to the extent of the difference between the price to the public charged for each share in this offering and the net tangible book value per share of our Common Stock after this offering.

 

Our historical net tangible book value as of December 31, 2017 was a deficit of $8,732 or $(0.0001) per then-outstanding share of our Common Stock. Historical net tangible book value per share equals the amount of our total tangible assets less total liabilities, divided by the total number of shares of our Common Stock outstanding, all as of the date specified.

 

The following table illustrates the per share dilution to new investors discussed above, assuming the sale of, respectively, 100%, 75%, 50% and 25% of the shares offered for sale in this offering (after deducting estimated offering expenses of $500,000, $375,000, $250,000 and $125,000, respectively):

  

Percentage of shares offered that are sold  100%  75%  50%  25%
             
Price to the public charged for each share in this offering  $0.01   $0.01   $0.01   $0.00 
             
Historical net tangible book value per share as of December 31, 2017 (1)  $(0.0001)  $(0.0001)  $(0.0001)  $(0.0001)
             
Increase in net tangible book value per share attributable to new investors in this offering (2)  $0.0080   $0.0077   $0.0072   $0.0059 
             
Net tangible book value per share, after this offering  $0.0079   $0.0076   $0.0070   $0.0058 
             
Dilution per share to new investors  $0.0021   $0.0024   $0.0030   $0.0042 

 

(1) Based on net tangible book value as of December 31, 2017 of $(8,732) and 68,400,000 outstanding shares of Common stock as of the date of this report.
   
(2) After deducting estimated offering expenses of $500,000, $375,000, $250,000 and $125,000, respectively.

 

The following table summarizes, on a pro forma basis as of December 1, 2017, the number of shares of Common Stock that would be issued, assuming the sale of all of the Common Stock offered, the total consideration paid and the average price per Common Share paid by the existing stockholders and by new investors purchasing Common Stock in the Offering, assuming sale of all 500,000,000 Shares of Common Stock.

 

  

Existing

shareholders

   Investors if all of the offered shares are purchased   Total (1) 
Shares purchased   68,400,000    500,000,000    568,400,000 
Total consideration  $6,840   $5,000,000   $5,068,400 
Average price  $0.0001   $0.01   $0.99 

 

(1) Before deduction of underwriting discounts and commissions and estimated offering expenses.

 

 

 

 

 

 15 

 

 

DISTRIBUTION

 

This Offering Circular is part of an Offering Statement that we filed with the SEC, using a continuous offering process. Periodically, as we have material developments, we will provide an Offering Circular supplement that may add, update or change information contained in this Offering Circular. Any statement that we make in this Offering Circular will be modified or superseded by any inconsistent statement made by us in a subsequent Offering Circular supplement. The Offering Statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this Offering Circular. You should read this Offering Circular and the related exhibits filed with the SEC and any Offering Circular supplement, together with additional information contained in our annual reports, semi-annual reports and other reports and information statements that we will file periodically with the SEC. See the section entitled “Additional Information” below for more details.

 

Pricing of the Offering

 

Prior to the Offering, there has been a limited public market for the Offered Shares. The initial public offering price was determined by the board of directors. The principal factors considered in determining the initial public offering price include:

 

  · the information set forth in this Offering Circular and otherwise available;

 

  · our history and prospects and the history of and prospects for the industry in which we compete;

 

  · our past and present financial performance;

 

  · our prospects for future earnings and the present state of our development;

 

  · the general condition of the securities markets at the time of this Offering;

 

  · the recent market prices of, and demand for, publicly traded common stock of generally comparable companies; and

 

  · other factors deemed relevant by us.

 

SELLING SHAREHOLDERS

 

The shares being offered for resale by the selling stockholders consist of 27,500,000 shares of our common stock held by five shareholders.

 

The following table sets forth the name of the selling stockholders, the number of shares of common stock beneficially owned by each of the selling stockholders as of the date hereof and the number of shares of common stock being offered by the selling stockholders. The shares being offered hereby are being qualified to permit public secondary trading, and the selling stockholders may offer all or part of the shares for resale from time to time. However, the selling stockholders are under no obligation to sell all or any portion of such shares nor are the selling stockholders obligated to sell any shares immediately upon effectiveness of this offering circular. All information with respect to share ownership has been furnished by the selling stockholders.

 

The column “Percent of common stock owned after offering (if all shares are sold)” includes the shares also registered by the Company to be sold pursuant to this offering.

 

Selling Shareholders

Class A
Common Stock
Owned Prior
to Offering

 

Shares Offered Shares
to be Owned
After Offering
Outstanding
Percentage of
Common Stock
Outstanding
Assuming All
Shares Offered
are Sold
James Edward Dempsey 5,500,000 5,500,000 0 0.97
MSB Management (1) 6,500,000 6,500,000 0 1.14
GPL Ventures, LLC (2) 6,500,000 6,500,000 0 1.14
Tri-Bridge Ventures, LLC (3) 6,000,000 6,000,000 0 1.05
R&J Holdings (4) 3,000,000 3,000,000 0 0.53
PAG Group, LLC (5) 2,000,000 2,000,000 0 0.57
Life Sciences Journeys, LLC (6) 3,250,000 3,250,000 0 0.35
All Selling Shareholders 32,750,000 32,750,000 0 5.76

 

 

 16 

 

 

(1) MSM Management is owned and controlled by MSM Management - Jonathan Blumenthal

(2 ) R and J Holdings USA is owned and controlled by Jonathan Morgan

(3) GPL Ventures LLC is owned and controlled by Cosmin Panait and Alexander Dillon

(4) Tri-Bridge Ventures, LLC is owned and controlled by John Forsythe

(5) PAG Group LLC is owned and controlled by Gary Kouletas

(6) Life Sciences Journeys, Inc. is owned and controlled by Ivan Ditmars

 

Investment Limitations

 

Generally, no sale may be made to you in this Offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth (please see below on how to calculate your net worth). Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

Because this is a Tier 2, Regulation A Offering, most investors must comply with the 10% limitation on investment in the Offering. The only investor in this Offering exempt from this limitation is an “accredited investor” as defined under Rule 501 of Regulation D under the Securities Act (an “Accredited Investor”). If you meet one of the following tests you should qualify as an Accredited Investor:

 

  (i) You are a natural person who has had individual income in excess of $200,000 in each of the two most recent years, or joint income with your spouse in excess of $300,000 in each of these years, and have a reasonable expectation of reaching the same income level in the current year;

 

  (ii) You are a natural person and your individual net worth, or joint net worth with your spouse, exceeds $1,000,000 at the time you purchase Offered Shares (please see below on how to calculate your net worth);

 

  (iii) You are an executive officer or general partner of the issuer or a manager or executive officer of the general partner of the issuer;

 

  (iv) You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the Code, a corporation, a Massachusetts or similar business trust or a partnership, not formed for the specific purpose of acquiring the Offered Shares, with total assets in excess of $5,000,000;

 

  (v) You are a bank or a savings and loan association or other institution as defined in the Securities Act, a broker or dealer registered pursuant to Section 15 of the Exchange Act, an insurance company as defined by the Securities Act, an investment company registered under the Investment Company Act of 1940 (the "Investment Company Act"), or a business development company as defined in that act, any Small Business Investment Company licensed by the Small Business Investment Act of 1958 or a private business development company as defined in the Investment Advisers Act of 1940;

 

  (vi) You are an entity (including an Individual Retirement Account trust) in which each equity owner is an accredited investor;

 

  (vii) You are a trust with total assets in excess of $5,000,000, your purchase of Offered Shares is directed by a person who either alone or with his purchaser representative(s) (as defined in Regulation D promulgated under the Securities Act) has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment, and you were not formed for the specific purpose of investing in the Offered Shares; or

 

  (viii) You are a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has assets in excess of $5,000,000.

 

Offering Period and Expiration Date

 

This Offering will start on or after the Qualification Date and will terminate if the Minimum Offering is not reached or, if it is reached, on the Termination Date.

 

Procedures for Subscribing

 

When you decide to subscribe for Offered Shares in this Offering, you should:

 

Go to www.minivest.com, click on the "Invest Now" button and follow the procedures as described.

 

  1. Electronically receive, review, execute and deliver to us a subscription agreement; and

 

  2. Deliver funds directly by wire or electronic funds transfer via ACH to the specified account maintained by us.

 

 

 

 

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Any potential investor will have ample time to review the subscription agreement, along with their counsel, prior to making any final investment decision. We shall only deliver such subscription agreement upon request after a potential investor has had ample opportunity to review this Offering Circular.

 

Right to Reject Subscriptions. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deduction.

 

Acceptance of Subscriptions. Upon our acceptance of a subscription agreement, we will countersign the subscription agreement and issue the shares subscribed at closing. Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request your subscription funds. All accepted subscription agreements are irrevocable.

 

Under Rule 251 of Regulation A, non-accredited, non-natural investors are subject to the investment limitation and may only invest funds which do not exceed 10% of the greater of the purchaser's revenue or net assets (as of the purchaser's most recent fiscal year end). A non-accredited, natural person may only invest funds which do not exceed 10% of the greater of the purchaser's annual income or net worth (please see below on how to calculate your net worth).

  

NOTE: For the purposes of calculating your net worth, it is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the fiduciary directly or indirectly provides funds for the purchase of the Offered Shares.

 

In order to purchase offered Shares and prior to the acceptance of any funds from an investor, an investor will be required to represent, to the Company's satisfaction, that he is either an accredited investor or is in compliance with the 10% of net worth or annual income limitation on investment in this Offering.

 

No Escrow

 

The proceeds of this offering will not be placed into an escrow account. We will offer our Common Stock on a best efforts basis primarily through an online platform. As there is no minimum offering, upon the approval of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds.

 

Minivest.com

 

The Company has retained Minivest, a website, https://minivest.com, on a non-exclusive basis to review of the business, operations, and historical financial performance of the Company ("Onboarding Materials") so as to enable Minivest to build a webpage within their Website for the purpose of advertising rhe Company and itxs itsRegulation A or A+ offering.

 

 

 

 

 

 

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

 

Overview

 

Smart Decision, Inc. was incorporated on September 5, 2017 and commenced operations immediately thereafter. We are still in the research development stage of our business, aiming to develop and sell an application for consumers to be able to select the right LED bulb/fixtures. By selecting the right product the first time it dramatically cuts down on product returns for retailers and creates a positive purchasing experience for the consumer. The Company plans to develop additional algorithms for other consumer categories in the future.

 

Recent Developments

 

On February 16, 2018, the Company amended its articles of incorporation to authorize 5,000,000,000 shares of Common Stock having a par value of $0.0001 and to divide its Common Stock into two classes: Class A and Class B. There are 4,900,000,000 designated shares of Class A and 100,000,000 designated shares of Class B. The shares of each class of Common Stock are identical except that the holders of the Class B Common Stock shall be entitled to elect a majority of the board of directors and the holders of the Class A shall elect the remainder of the directors. Each share of Class B Common Stock shall be convertible at any time into one share of Class A Common Stock at the option of the holder.

 

As part of the amendment the Company also added 1,000,000,000 shares of Preferred Stock having a par value of $0.0001 per share. The board of directors is expressly vested with the authority to fix and determine the relative rights and preferences of the shares of each series so established, however, that the rights and preferences of the various series may vary with only respect to the rate of dividend; whether the shares may be called and, if so, the call price and the terms and conditions of call; the amount payable upon the shares in the event of voluntary and involuntary liquidation; sinking fund provisions; the terms and conditions, if any, on which the shares may be converted; voting rights; and whether the shares will be cumulative , noncumulative, or partially cumulative as to dividends and the dates from which any cumulative dividends are to accumulate.

 

In September 2017, the Company granted 33,750,000 Class A common shares to two founders for services. The shares were valued at a nominal value of $0.0001 per share for a total of $3,375 which was charged to compensation expense.

 

In February 2018, the Company sold 32,750,000 shares of Class A Common Stock to investors at $0.0001 per share for a total cash consideration of $3,275.

 

Revenue

 

We generated no revenues during the period from September 5, 2017 (inception) through December 31, 2017.

 

Net loss

 

As a result of the foregoing, during the period from September 5, 2017 (inception) through December 31, 2017, we recorded a net loss of $12,107. The loss is mainly comprised of accounting fees of $3,000, stock-based compensation to the founders of $3,375, legal fees of $5,000, and the remaining attributable to bank charges, general and administrative, office supplies and software license fees.

 

Liquidity and Capital Resources

 

As of December 31, 2017, the Company had cash on hand of $4,009. We may be required to raise additional funds, particularly if we are unable to generate positive cash flow as a result of our operations. We estimate that based on current plans and assumptions, that our cash will not be sufficient to satisfy our cash requirements under our present operating expectations, without further financing, for up to 12 months. In order to continue as a going concern, develop a reliable source of revenues, and achieve a profitable level of operations the Company will need, among other things, additional capital resources. Management’s plans to continue as a going concern include raising additional capital through borrowings and the sale of common stock. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in case of an equity financing.

 

 

 

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Cash Flows

 

Operating Activities

 

From September 5, 2017 (inception) through December 31, 2017, we used $3,191 of cash in operating activities.

 

Financing Activities

 

From September 5, 2017 (inception) through December 31, 2017, financing activities provided $7,200. We received proceeds from the issuance of a convertible note and a loan from the Company’s treasurer.

 

Critical Accounting Policies and Estimates

 

Use of estimates

 

The preparation of the unaudited financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

 

Stock-Based Compensation

 

The Company records stock-based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock and stock option awards. This standard requires that such transactions be accounted for using a fair-value-based method.

 

 

 

 

 

 

 

 

 

 

 

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BUSINESS

________

 

Smart Decision, Inc.

 

Smart Decision, Inc. (“Smart Decision,” “SDI,” “we,” or the “Company”) was incorporated in Wyoming on September 5, 2017. Our offices are located at 1825 Corporate Blvd. NW #110, Boca Raton, FL 33431, telephone: 877-267-6278, Fax: 877-254-6691, website: http://www.smartdecisioninc.com, email: adam@smartdecisioninc.com We do not incorporate the information on or accessible through our website into this Offering Circular, and you should not consider any information on, or that can be accessed through, our website a part of this Offering Circular.

 

Our Business

 

 In a recent Department of Energy (DOE) report, LED lighting is projected to achieve a market share of 84% of lumen-hour sales in the general illumination market by 2030, reducing lighting energy consumption in that year alone by 40%, for a savings of 3.0 quads (261 terawatt-hours) - worth over $26 billion at today’s energy prices and equivalent to the total energy consumed by nearly 24 million U.S. homes.

 

SMART DECISION INC.™ has researched and developed an algorithm for the consumer and business LED Lighting Market. With the company’s patent pending “Smart Decision” algorithm, the confusion of selecting the correct LED products will be significantly reduced. Consumers will now be able to select the right LED bulbs/fixtures by answering a handful of consumer-friendly questions. Ultimately, selecting the right product the first time dramatically cuts down on product returns for retailers and creates positive purchasing experience for the consumer. The Company intends to develop additional algorithms for other consumer categories in the future.

 

The Problem We Address

 

Buying an LED bulb is not like buying a traditional bulb due to numerous LED varieties. Home improvement store associates are ill equipped to assist customers with complicated LED decisions - resulting in unusually high return rates on LED products. Consumer satisfaction purchasing LED is much less than other household items.

 

In fact, despite LED products being superior to traditional products, as much as 40% of all LED purchases in a given store may be returned for a refund. This causes enormous loss of time and money to stores, manufacturers and consumers. We believe it may hindering the rapid growth of LED lighting as consumers give up on improperly chosen LED bulbs.

 

We simply assist consumers in making smart decisions for their LED lighting. We do this in a fast, simple and inexpensive way.

 

Thus, we are strategically positioned to be a key essential element in a potentially $126 billion international LED lighting market by the year 2025 (according to Persistence Market Research.)

 

Our Solution

 

SMART DECISION INC.™ offers an algorithm known as LED Smart Decision™ consisting of innovative technology offering consumers a way to make informed purchases. We disrupt the currently fragmented market by focusing within the LED industry. Our software is designed to filter products and specification that specifically meet the needs of each consumer.

 

SMART DECISION INC.™ has the easiest and most advanced methods to help buyers looking to source LED products for their home or business. We will be able to implement the “Smart Decision” algorithm across various consumer product segments.

 

 

 

 

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Our Objectives

 

SMART DECISION INC.™ has definite objectives in order to fulfill its desire to participate and achieve an ever-growing market share. What follows is a brief summary of the key objectives:

 

·Procure funding to develop and launch the LED SMART DECISION INC.™ Algorithm;
·Develop alliances with LED manufacturers (vendors);
·Create relationships with online LED sellers and brick mortar retailers;
·Reduce the exceptionally high return rate on LED for the retailers and manufacturers;
·Make the purchase of LED painless so they make the right purchase the first time.

 

Our Keys to Success

 

SMART DECISION INC.™ is confident of the attributes that demonstrate our keys to success:

 

·Unique Patent Pending Filtering System to easily select the best LED for all applications;
·Patent of Filtering System to easily select the best LED for all applications;
·Law prohibiting sales of incandescent light bulbs after 2014;
·Only algorithm/plugin specifically designed for LED with easy to answer questions for the consumer.

 

The LED Lighting Market

 

Our industry is anticipated to grow 45% yearly through 2021 and beyond. Market forecasts are based on indications that LEDs are leveraging economies of scale to achieve price points attractive to users. Markets appear to be moving toward 100% LED replacement of existing technology including incandescent bulbs. The latest market report by firm Pike Research said, “LEDs will account for almost 75% of the commercial lighting market in the United States within the next ten years.” Lighting accounts for 17.5% of all electricity use within the United States. The growth of LED (light emitting diode) technology is inevitable as the United States currently leads the world in energy usage at 4,065 billion kWh annually.

 

General lighting has surpassed all other applications, representing nearly 39% of total revenue of packaged LEDs. Electricity consumption can be reduced by more than 50% with the full-scale adoption of LED lighting. This could translate a savings of 334 million barrels of oil per year in the U.S. According to the United States Department of Energy, the adoption of LED lighting in the Country over the next twenty years would reduce electricity consumption by 25%, save an accumulated US$120 billion in energy costs, and reduce greenhouse gas emissions by millions of metric tons of Co2. According to a recent research study by EL Insights, growth will be strongest in commercial lighting over the next ten years from 2015 to 2020.

 

Key Market Statistics:

 

·Today, LED market penetration is less than 10%;
·Return rate in excess of 40% in many sectors of the market

 

According to market research published by P&S Market Research and broadcasted using Global Newswire, the LED lighting market size is projected to hit $70.2 billion by 2023, which would be growing at a CAGR of 12.6% between 2017 – 2023. They cite a growing adoption of energy efficient lighting solutions across the globe as one of the primary factors attributing to the growth of the worldwide LED lighting industry. The increase in demand of LED for various lighting applications of general lighting have also benefited the penetration of LED lighting in recent years.

 

The adoption and acceptance of LED lighting is continuously increasing in the residential, commercial and industrial lighting applications. In a Department of Energy (DOE) 2014 study, energy savings forecast of solid-state lighting (LED) in general illumination applications is predicted that LED lighting will represent 84% of all lighting sales by the year 2030.

 

According to a report published by Report Buyer via PR Newswire, 
 Global LED lighting market is expected to surpass US$ 100 Billion by the end of year 2024. The global Led lighting market is currently undergoing a drastic change, propelled by the exponential urban expansion expected over the next decade, and the drive towards even bigger energy efficiency.

 

 

 

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In another study conducted by Persistence Market Research, indoor applications of LED lighting are projected to be the most attractive segment from 2017 – 2025.

 

LED lamps are energy efficient, have a service life of up to 50,000 hours or more. Unlike traditional lighting, LED does not contain any filament or tube that is fragile. LED requires no warm up period and they light up instantly. They are also environmentally friendly. They do not contain mercury or any other hazardous substances. Due to these desirable properties of LED, they are ideal in situations where lamps are required to be switched on and off. LED lighting has zero UV emissions and they can also run on low voltage power supply. Due to these distinct advantages of LED lighting, the global market for LED lighting is expanding at a fast pace and LED lighting has the potential to revolutionize the lighting sector.

 

According to Persistence Market Research analysis, the global LED lighting market was valued at nearly $37 billion in 2017. It is expected to touch a figure of $126 billion by the year 2025, registering a CAGR of 16.6% and exhibiting an increase of 3.4x in terms of revenue during the forecast period.

 

Our Algorithm

 

In the past five months, LED Smart Decision Inc. has spent a countless amount of hours preparing questions and suitable answers for the development of our upcoming algorithm.

 

The principal product of LED Smart Decision Inc. will be a software algorithm (plug-in) that will work directly with retailers LED inventory. It will be designed to work for both big-box and online retailers. Distribution of the software will be executed through marketing campaigns and word of mouth.

 

At the current time, LED Smart Decision Inc. has engaged with several top-flight development companies that have vast experience in working with algorithms and software development.

 

Since LED Smart Decision Inc.’s incorporation in September 2017, all those involved with the company have worked towards the same goal, without compensation.

 

Thus far, there are two employees and two board members that are part of the LED Smart Decision Inc. corporate structure.

 

LED Smart Decision Inc. has no material classification, merger, consolidation or purchase or sale of a significant amount of assets not in the ordinary course of business.

 

Full Description and rationale behind Smart Decision, Inc.:

 

What is “Smart Decision?”

 

Smart Decision is a Plug-in that will allow consumers to make educated buying decisions with little to no knowledge of the product(s) they are buying. While it can be used in almost any type of consumer product in existence, our focus is going to be on the following consumer market:

 

LED Lighting for the “home” and “business”

 

There are very few sales man that truly understand LED lighting. In fact, I’ve worked with Lighting Engineers for major hotels that have been doing lighting for 20-30 years. Yet, when it comes to LED, they are absolutely clueless. It’s just a different beast. When it comes to LED Lighting, much of what they’ve learned about lighting for the past 20 years+ is irrelevant when it comes to LED.

 

Even with the price of LED down significantly in the past few years, the market growth has been a bit slower than at first anticipated due to the confusion in the marketplace. With a majority of the potential lighting buyers still moving in the direction of LED, we believe that there is no better time than for Smart Decision Inc. to help solve LED’s biggest problem, which is confusion.

 

Why did we choose LED?

 

Not only is LED in one of the most explosive product categories in the consumer market today, there is complete confusion in terms of making the right buying decision(s).

 

 

 

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What is the problem we’re trying to solve with LED?

 

LED – If you’ve ever tried to purchase LED for your home, you’ve probably experienced quite a bit of frustration in terms of selecting LED bulbs/fixtures that you’re happy with on the first try.

 

You would think it’s just a matter of reading the information on the box. For example, you might need 10 Hi-Hat bulbs in your kitchen. Let’s say currently, you have 75W Halogen Hi-Hats that are Warm White.

 

You head over to Home Depot and you look at a handful of LED products that say, “75W Replacement” or “Warm White.” At first, it would appear that you can pick any of the handful of bulbs on offer, and it will be a good replacement for the traditional bulb(s) you currently have. But, when you get home and you install your new LED Hi-Hats, you are instantly disappointed. The color is not as warm as the box had indicated and the light is not nearly as bright as what you’re used to.

 

You go back to Home Depot to return the LED bulbs you just bought and now, it’s time to try another brand. And of course, you get home, and the same thing happens again. How can that be?

 

Very simple… LED manufacturers use wide ranges to label products. Warm White to one manufacturer is 2700K in color temperature. To another manufacturer, 3200K is what they consider Warm White. When it comes to the light output you were also disappointed with, manufacturer’s have a wide range of Lumen Output in terms of how it compares to the 75W bulb you were trying to replace in the first place.

 

So, you can take 5 different LED bulbs that say “75W Replacement”, and each one of them is going to put out a different amount of light. That’s where the confusion lies.

 

However, numbers don’t lie. So, if a consumer tells me that they have an 11 foot ceiling height and they like a lot of light, they will need approximately 1100 lumens of light output to be happy. Yet, some of the 75W replacement bulbs are rated at 900 lumens and others at 1100 lumens.

 

With an algorithmic plugin, we can dial in specific needs with absolute numbers to guide the consumers into making the right selection on the first try. They will be able to answer 5-10 “easy as pie” questions that will advise the consumer which LED bulb/fixture best meets their needs.

 

Considering that Home Depot has an LED return rate in excess of 30%, this is a product that will not only help Home Depot cut down on the returns, but also the Vendors (Manufacturers) that supply their products to Home Depot. After all, they are one’s losing margins due to high percentage of returns.

 

Most importantly, in terms of the consumer, a plug-in such as this, will instill the confidence to do the LED retrofit that they’ve been talking about for a long time, but were either disappointed on their first try or were afraid to make mistakes. This plugin will solve this.

 

You might say, “Gee, the average LED retailer has a filtering system on their site to assist the consumer already. Why is that not enough?” It’s very simple. Most of the questions in a current filtering system are for seasoned industry professionals or lighting gurus. Our plugin is for the other 99%. It’s for those that don’t know color temperatures, lumen output, etc.

 

Service Description

 

SMART DECISION INC.™ is proud of the features and benefits that make up the platform’s attractiveness to this ever-growing market. SMART DECISION INC.™ looks to become the premier LED platform, providing a plugin solution for brick and mortar and online retail channels to help promote their products in the U.S. SMART DECISION INC.™ provides an ‘LED Smart Decision Algorithm’ for residential and commercial buyers (facility directors, property managers, etc.) that will provide LED buying recommendations based on specific needs (direct from online resellers and big box retailers). SMART DECISION INC.™ essentially offers an ‘LED Smart Decision Algorithm’ for residential buyers that will make the process of selecting LED very simple. Smart Decision Inc. is also looking to expand into other consumer related markets with similar type filtering engines.

 

The LED SmartDecision™ algorithm will assist potential LED buyers in making informed decisions when buying LED products. Each category would have a simple questionnaire to assist buyers in selecting products specific to each category. The SMART DECISION INC.™ algorithm will make the LED buying experience simple for:

 

·Consumer and household use (homes, home-office);
·Commercial use (office buildings, hotels, casinos, hospitals, schools, condos, etc.); including Government (office buildings, hospitals, etc.)

 

 

 

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Competitive Comparison

 

SMART DECISION INC.™ understands the current struggles and competitive nature of the current retailers. SMART DECISION INC.™‘s study of the LED retailers has given the Company a mastery of the strengths and weaknesses of companies that make up the competition. With the competition’s lack of filtering and industry specific categorical breakdowns and displays, SMART DECISION INC.™ should capture its target market.

 

Sales Literature

 

SMART DECISION INC.™ is prepared to highlight all of the most important benefits and features in a packet of sales literature, as well as a dynamic website with informative web pages. This information, along with other resources, will present a call to action. The sales literature will address questions related to helping the retailer understand how implementing the Smart Decision algorithm can increase sales while decreasing returns.

 

Who will pay for SMART DECISION INC.™ services?

 

·Big box retailers looking for exposure in the LED field;
·Online LED ecommerce sites want the ability to drive potential online buyers to their site;
·Vendors and manufactures whose LED product is sold online and in brick and mortar locations.

 

 

 

  

How will SMART DECISION INC.™ charge its clients?

 

·Purchase a license agreement to use SMART DECISION INC.™ Plugin;
·Purchase a license agreement to use SMART DECISION INC.™ mobile app;
·Purchase a license agreement to use SMART DECISION INC.™ algorithm as a kiosk or in-store tablet.

 

 

 

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SMART DECISION INC.™ Case Study:

 

·SMART DECISION INC.™ has spoken to all segments of the lighting industry (manufacturers, resellers, consumers, etc.). Every person, entity, company approached has said that they wanted to be a part of SMART DECISION INC.™. More importantly, they were willing to pay for the privilege;
·SMART DECISION INC.™ has spoken to over 1,000 customers at Home Depot and Lowes looking at LED bulbs/fixtures. 91% of the 1,000 had absolutely no idea what they needed to buy or how to choose an LED product that would closely match their current ‘traditional’ lighting;
·95% of those customers could not find suitable help in selecting the proper LED at the store level;
·Store managers at 10 locations cited lack of knowledge as the reason that the return rate for LED lighting exceeded 35%;
·The 30+ industry publications that would assist in driving traffic to SMART DECISION INC.™ currently have more than 2.5 million subscribers/registered users;

 

 

 

Market Analysis Summary

 

SMART DECISION INC.™ has done an exhaustive study of the state of its industry. The LED lighting industry is one of the most explosive industries in the world. The LED Lighting market in North America is forecast to grow at a CAGR of 21.12% over the period 2018 to 2021. The LED market presents an ever-increasing market, a healthy bottom line, and excellent opportunities for growth. The LED lighting industry has shown rapid growth, reaching US$13.6 billion in the United States and approximately US$63.1 billion internationally (2015). In addition, there are over 4,200 Electrical (Lighting) Distributors in the United States; there are 1,500 lighting representatives in the United States; the site 1000bulbs.com has more than 500,000 visitors to their site on a monthly basis; 1000bulbs.com ships over 3,000 packages daily.

 

The illumination segment of the LED market will light the way with a compound annual growth rate (CAGR) of nearly 22% in 2018 to 2021. The display portion of the market, including backlit signs and billboards, will also shine brightly, achieving a five-year CAGR of over 14% as cities shift their needs to these more energy-efficient and ecologically friendly solutions. At the present time, there are three ways for America to get involved in reducing the Country’s thirst for electricity: photovoltaic (solar), wind generation and LED lighting. Without question, LED lighting is the most cost-effective and practical way of going green. More importantly, it offers an ROI that far exceeds the benefits of the other technologies.

 

The penetration of LEDs into the lighting market has, while still in its infancy, created a buzz this past year. The industry’s momentum picked up speed in 2013, with a growth rate of 31% compared to 15% in 2012. Replacement lamps will be a major growth area securing the retrofit market until the new construction market is humming once again. Longer-term outlook continues to be highly positive, with 5-year CAGR forecast at 45%; forecasting overall 53% market growth. The U.S. Department of Energy states: the energy consumed by lighting the United States accounted for about 22 percent of annual energy production.

 

 

 

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Widespread use of LED lighting will decrease the energy consumption of 50%. If the objective in mind, then by 2027, LED lighting is to achieve annual energy consumption reductions will be equivalent to 5 billion barrels of oil, while also reducing carbon dioxide emissions. As a result, the market is expected to improve in the near future combined with economic revival and increased environmental awareness.

 

 

 

Market Segmentation & Target Market

 

SMART DECISION INC.™ aims to understand each and every reason why the consumer will buy LED. The Company not only seeks to become experts on why its customers buy, but also what makes their customers buy now. With the technology offering safety (LED bulbs contain no mercury and have no UV rays) and 50% to 90% savings for the consumer, as well as the environment, the Company looks to target large commercial facilities and government buildings with its T8 replacement tube products. With many of these facilities required by law to run lighting 24 hours in common areas, the savings are invaluable to consumers.

 

Today, there is less than a 1.5% market penetration with LED T8 replacement tubes and less than a 2% penetration with all kinds of LED lighting. Assuming that McKinsey & Company’s recent study is correct in its assessment of a 70% LED market penetration by the year 2021, growth will become explosive in the next several years. In their survey, lighting professionals and consumers were also asked to identify a payback period (in years) that would encourage them to choose LED over traditional lighting, by application. The results showed that most people required payback of three years or less.

 

The acceptable payback period for residential lighting had the highest proportion of participants (22%) that expected payback in less than one year. The acceptable premium that people were willing to pay for a new lighting fixture for the first installation varied on average between 30% above cost (for residential lighting) and 39% (for office lighting). The median value was at 20% for all applications (except office lighting), which had a median value of 30%. Utility costs are rising, and the trend is expected to continue.

 

 

 

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In fact, about 75% of facilities managers responsible for 630 buildings reported an increase in utility costs, according to International Facility Management Association. 20% said their increases were 10% or more. Of the costs explored in the study, utility costs showed the largest increase in the past year, spurred by the increased cost of natural gas. That is attributed to increased demand and tight supplies, as well as a colder than normal winter in parts of the country. Although utility costs vary by region, rates edging up got the blame for cost increases from 72% of the respondents, while about 30% said their costs were up as a result of usage being up significantly. Those who completed the survey manage a total of 420 million square feet, including space for office, research, hospital, call center, factory and other operations.

 

Rising energy costs affects everyone in this market; meaning, businesses have to work harder to remain profitable by controlling costs. All sectors are now faced with the added pressure from governments, investors and consumers to reduce energy consumption and be recognized as environmentally friendly.

 

Market Needs & Market Trends

 

Over the past three years, the number of mergers and acquisitions has continuously grown, reflecting the increased consolidation of the LED industry. During this period, there have been 60 significant mergers and acquisitions deals. 17 additional deals have been identified during H1-2013. Vertical integration deals are motivated by the need for companies to access to new technologies, to close knowledge gaps in the LED supply chain, secure supply. Strategic acquisitions are mainly motivated by economies of scale, desire for improved market share, access to a wider customer portfolio, and to increase the sales force. Mergers and acquisitions, rather than organic growth, are the main market-entry strategy by overseas acquirers.

 

Such deals have been driven primarily by companies seeking access to new markets and local distribution networks. The number of mergers and acquisitions deals is likely to continue to grow as LED technology has created a solid-state lighting (SSL) chasm, modifying all traditional aspects of the lighting industry and forcing suppliers to acquire competencies. SMART DECISION INC.™ believes that LED lighting will continue to grow in the midst of this struggling economy. It’s now a necessity for corporate America to lower overhead and carbon footprint. With an attractive ROI and ease of installation, there is no better way to ‘go green’.

 

 

 

 

Market Growth & Industry Study

 

Growth of the LED industry has come from LED use in small displays and has then been driven forward by the LCD display industry. General lighting has surpassed all other applications, representing nearly 39 percent of total revenue for packaged LEDs.

 

LED-based lighting product prices have decreased more rapidly than expected, increasing the penetration rate of the technology. Globally, the lighting market will grow to $159 billion in 2020.

 

The LED lighting market will amount to almost US$94 billion by 2020, representing close to 60% of the total lighting market. SMART DECISION INC.™ recognizes that it’s participating in a large industry with a potentially explosive growth rate. Its projected growth will be set at a rate greater than the industry average. SMART DECISION INC.™ implementation of its business strategy will lend itself to fast paced development and dominance with a significant market share. The Company has determined the growth of the SMART DECISION INC.™ market on the basis of an ever-increasing customer base, and dollar volume base as well.

 

 

 

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Our Marketing Strategy & Implementation

 

SMART DECISION INC.™ is aware of all of the different options in a marketing strategy. Because of its research, management has chosen to market through SEO, search engine listings with various social media such as Manta, LinkedIn, Google+, etc.; email communications that will consist of: letters, PDF file attachments, publisher files, web links to its site, promotional opportunities, etc.; trade publications; press releases in trade magazines that will promote new business, as well as for highlighting the specifics its experience and services.

 

SMART DECISION INC.™ will also attend industry related trade shows to demonstrate its platform. The Company will make personal sales calls to retailers and vendors to promote its site/algorithm. The marketing plans and efforts are designed to produce the maximum exposure and response from manufacturers, gain industry recognition, industry presence for increasing sales opportunities and growth. SMART DECISION INC.™ looks to take advantage of the 75% of the population online, with vast relevancy relatable to keywords (organics). Below is an outline of the strategy toward marketing the site and ramping up organic results:

 

Pre-Launch Beta Stage:

 

Viral

 

oCreate initial viral video spots;
oJoin social networks;
oOutsource blogging;
oRelease press releases frequently;

 

Traditional

 

oOrganic SEO (automatically create Meta tags for all images, media and links on the site);
oAdditional SEO methods will be implemented throughout the site;
oApproach relevant newspapers and magazines and issue press releases;
oTap into friend’s and client’s networks;

 

Post Launch:

 

oCreate additional viral video spots;
oGrassroots campaign and organic SEO;
oApproach public relations firms;
oSetup SMART DECISION INC.™ blog (RSS) feed;

 

Marketing Programs & Sales Strategy

 

SMART DECISION INC.™ knows that its marketing programs need to be compelling, detailed and highlight many of its capabilities. SMART DECISION INC.™ knows that its consumers hear its message through every aspect of the staff, reputation, and quality control. SMART DECISION INC.™ strives to be indispensable to both the consumer and the retailer. Its marketing programs work to identify this customer, highlight competitive advantages, as well as show appreciation for customer feedback. The Company has set deadlines with amounts, as well as budget restrictions for a highly profitable sales program. With its comprehensive marketing program and competitive positioning, SMART DECISION INC.™ is confident to see its milestones become realities.

 

Developmental Milestones

 

-Development of Smart Decision Algorithm: We anticipate that full development of our algorithm will take six months to complete.

 

-Marketing of Smart Decision Plug-In: Marketing of our algorithm will begin in month three as we expect to have a working demo/website that potential customers will be able to indicate interest.

 

-Once the Smart Decision Algorithm is complete, we will employ sales and marketing team to implement our strategy of licensing of the algorithm to both big box retailers and online retailers.

 

-In our opinion, the proceeds from the offering will satisfy our cash requirements. We anticipate no other funds will be needed.

 

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Financial Plan

 

SMART DECISION INC.™ has developed its financial plan with the awareness that cash and the bottom line are key components of any successful company. We expect that revenues will come from charges and fees generated from a portion of the sales of LED products and services and licensing agreements with several large retailers. The opportunity to increase revenues is being fully taken advantage of as outlined in its overall marketing strategy. To assure that bottom line adequately follows increases in revenue every care possible is being taken to control all areas of expenses and overhead.

 

Important Assumptions & Key Financial Indicators

 

SMART DECISION INC.™ makes every effort not to assume any aspect of its operation other than having hard factual data to back up any forecast. The entire management team is constantly reminded to base all programs on highly researched statistical information with the slightest possible margin of variation. One of the reasons SMART DECISION INC.™ chose the LED industry for a portal was to minimize as many variables in the business community as possible. SMART DECISION INC.™ recognizes that the most important financial indicators are cash and bottom line. This Company will be constantly monitoring the flow of revenue to the Company, as well as the expense requirements that deplete the Company of its cash. SMART DECISION INC.™ will always try to improve the ratio of revenue and expenses to generate a healthier bottom line.

 

Within six months of launch, the SMART DECISION INC.™ will unveil the stand-alone version of the LED Smart Decision Algorithm. While the algorithm will start off as a tool for the SMART DECISION INC.™ platform, we will be creating a stand-alone version that will:

 

1.Allow big box retailers (for a licensing fee), the ability to add their inventory to the database and have a tablet at the store level that makes use of the LED Smart Decision Algorithm to assist their customers in selecting the right LED while at the store,
2.The retailers will have the option of allowing for a location based Smart Phone app that will allow customers to use the LED Smart Decision Algorithm at the store level from their very own smart phone. Again, SMART DECISION INC.™ will charge a licensing fee,
3.Online retailers will be able to incorporate the LED Smart Decision Algorithm into their own ERP software or use as stand-alone software that will cater to the specific products they carry. This will help their sales associates in making sure that they are selling the right LED to their customers. Again, SMART DECISION INC.™ will charge a licensing fee

 

SMART DECISION INC.™ is currently patent pending for the LED Smart Decision Algorithm, patent application number 14/854692, that will enable it to capture the entire market, when it comes to a simple way for consumers to source LED. Additionally, SMART DECISION INC.™ has been awarded patent 8829773 for Lighting Apparatus with Light-Emitting Diodes, Chips, and Remote phosphor layer.

 

Available Information

 

Our website is www.smartdecisioninc.com. We make available through our website additional information on our company and our products. We do not incorporate the information on or accessible through our website into this Offering Circular, and you should not consider any information on, or that can be accessed through, our website a part of this Offering Circular.

 

 

 

 

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Our Technology and Intellectual Property

 

We may rely on a combination of patent, trademark, copyright, and trade secret laws in the United States as well as confidentiality procedures and contractual provisions to protect our proprietary technology, databases, and our brand. Despite this reliance, we believe the following factors are more essential to establishing and maintaining a competitive advantage:

 

·The skills of our service operations and research and development teams;
·Our research and development;
·the real-time connectivity of our service offerings;
·a continued focus on the improved results of our clients.

 

We have a policy of requiring key employees and consultants to execute confidentiality agreements upon the commencement of an employment or consulting relationship with us. Our employee agreements also require relevant employees to assign to us all rights to any inventions made or conceived during their employment with us. In addition, we have a policy of requiring individuals and entities with which we discuss potential business relationships to sign non-disclosure agreements. Our agreements with clients include confidentiality and non-disclosure provisions.

 

We have acquired rights to one United States patent and one United States patent application. Patent 8,829,773 covers lighting apparatus with light-emitting diode chips and remote phosphor layer. Patent Application 14/854692 covers a method for an LED product filtering engine. This technology covers a user-friendly method for filtering LED products in order to identify a matching design ideal for a specific lighting application described by a user. It relates generally to a method for a product selection engine in relation to light-emitting diode (LED) fixtures. More specifically, this application is a method for assisting consumers in identifying and selecting a proper LED design based on a set needs and preferences.

 

Both patents (14/854692 & 8829773) have been assigned to and are owned by LED Smart Decision Inc. Both patents are utility patents. All utility patents are valid for a period of 20 years. Patent 8829773 (Lighting Apparatus with Light-Emitting Diodes, Chips and Remote Phosphor Layer) will remain valid until at least 2035. Patent 14/854692 (currently pending) will have a validation period of 20 years, if and when the patent is awarded from the U.S. Patent and Trademarket Office.

 

Seasonality

 

We do not expect any seasonality in our business.

 

Litigation

 

The Company has no current, pending or threatened legal proceedings or administrative actions either by or against the Company issuer that could have a material effect on the issuer's business, financial condition, or operations and any current, past or pending trading suspensions

 

Facilities

 

Our corporate office is located at 1825 Corporate Boulevard NW, Suite 110, Boca Raton, Florida 33431.

 

Employees

 

As of December 31, 2017, we had four employees, including officers and directors. We believe that we have been successful in attracting experienced and capable personnel. All our employees have entered agreements with us requiring them not to compete or disclose our proprietary information. Our employees are not represented by any labor union. We believe that relations with our employees are excellent.

 

 

 

 

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MANAGEMENT

______

 

The following table sets forth information regarding our executive officers, directors and significant employees, including their ages as of December 31, 2017:

 

Approximate hours per week for part-time employees

 

Name and Principal Position Age Term of Office Approximate
per week for
Part-Time Employees
  Adam Green – President, Chairman 47   Since September 2017 50
  Eric Gutmann – Secretary-Treasurer, Director 44   Since September 2017 30
  Jonathan Morgan – Director 43   Since September 2017 5
  Dr. James Edward Dempsey – Director 78   Since September 2017 5

 

Adam Green – President, Chairman

 

From 2017 to the present Mr. Green has been President, of LED Smart Decision Inc. From 2014 to 2017, Mr. Green was President of LED Exchange LLC., located in Boca Raton, Florida, a LED Lighting Consultant. From 2011 to 2013, Mr. Green was National LED Sales Director, Nedco Supply of Las Vegas, Nevada, an electrical & lighting distributor. From 2009 to 2013 Mr. Green was President of LED Optics Inc. of Boca Raton, Florida, a LED Bulb Manufacturer.

 

Adam Green is performance-driven sales expert and accomplished executive who has consistently delivered exceptional results. He combines strong business acumen with a transformational leadership style. Adam is adept at managing complex and dynamic work environments including LED product manufacturing, distribution, operations, marketing and supply chain management. Accomplishments:

 

-Mr. Green was one of the first manufacturers in the United States to receive an ETL safety listing for an LED Tube that replaces standard fluorescent tubes. Patent (13/785,827) on the use of remote phosphor in the manufacturing of LED Tubes, slashing manufacturing costs by 40% and increasing the life expectancy of LED Tubes by up to 50%.
-Patent Pending on a method for an LED Product Filtering Engine that will help consumers select the correct LED bulbs/fixtures for their application and help online and brick-and-mortar retailers sell the proper LED to their customers. Developed sales and marketing strategies for LED distributors and sales agencies that helped increase efficiency and profit margins.
-Implemented incentive programs and sales strategy guidelines for inside and outside sales staff to increase production on a monthly basis, increasing sales from $1M to over $13M within 2 years of arrival. In 2012, completed one of the largest LED retrofits at the time in Las Vegas of LED bulbs (30,000 pcs.) for a Station’s Casino property. Worked closely with engineers to insure compatibility with their current lighting control system.
-Guest lecturer at several colleges and universities to both faculty and students. Helped author an LED test study for the Clark County School District in Nevada, proving that students’ test scores improved in classrooms outfitted with LED lighting.

 

Eric Gutmann – Secretary-Treasurer, Director

 

From 2013 to the present has been Chief Operating Officer of Meel Corporation of Miami FL, a processor of frozen fruits and vegetables.

 

Mr. Gutmann was President and Chief Operating Officer for Natural Synergies, a buying consortium for independent natural food stores throughout the United States. After leaving Natural Synergies Mr. Gutmann became Director of Business Development for Skies International, a distributor of consumer products throughout Central and South America. Mr. Gutmann is an investor in several small start-ups and also manages a family real estate portfolio.

 

In addition, Mr. Gutmann has been a member of the board of the Jewish Federation of South Palm Beach County and has served as the President of the Board of the Adolph and Rose Levis Jewish Community Center in Boca Raton and continues to serve on their Executive Committee.

 

Mr. Gutmann graduated with an Honors degree in finance from the University of Florida.

 

 

 

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Jonathan Morgan – Director

 

From 2016 to the present time, Mr. Morgan has been President of Happy Head Marketing Inc., a marketing and trade show design firm. From 1998 to the present time, Mr. has been Sales Director of RMI Inc., a New Jersey marketing and trade show design firm.

 

Jonathan Morgan is a marketing, advertising, design and production of displays, product development, trade show and exhibits, merchandising, promotional products and printing industry expert for the past 24 years and has been an integral Partner at RMI, Inc, and Founder of Happy Head Marketing. RMI, Inc for the past 45 years is one of the top leading Marketing, Advertising, Pos/Pop, Trade Show and Exhibits, Mobile/Smartphone Web Development, Promotional Products and Printing Agency's in the United States.

 

Mr. Morgan has worked and created programs with companies such as Vespa Scooters, Citibank, Volvo Cars of NA, Ricoh Corp, Yamaha Music Corp, Ovation Guitars, AAA National, Welch’s Fruit Snacks, Fender Guitars, Magnolia Bakery, Barnes and Noble College Bookstores, TechWeb, Sour Jackets Candy, Women In The World and an additional 120+ other companies. These companies hired Jonathan / RMI Inc for a one-stop source for their niche marketing opportunities and programs.

 

Five years ago, Mr. Morgan founded Happy Head Marketing to serve the Medical/Recreational Cannabis and CBD Industry. Happy Head Marketing is a one-stop source to help develop and manufacture the most unique cartridges, electronic vaporizers, pos/pop displays, and packaging for over 40 well recognized brands seen in the Medical/Recreational Cannabis and CBD Industry. Happy Head Marketing provides the best quality products in the market through our manufacturing, innovation and quality standards. Its team has created and worked with some of the biggest brands in the industry. These brands come to Happy Head Marketing for their relationships to direct and navigate through this unregulated industry. Some of these brands are: Bhang, Beboe, Dixie, Harmony Extracts, Green Roads World, 420 Bar, Cannabis Quencher, Etain Health, Ebbu, and KYND.

 

Mr. Morgan graduated with a Business Marketing Degree from the University of Hartford. He is a member of or affiliated with the Advertising Specialty Institute, Graphics of the Americas, National Cannabis Industry Association, Marijuana Business Association and SGIA.

 

Dr. James Edward Dempsey – Director

 

From 1974 to the present Dr. Dempsey has been a Partner of ENT of Athens, Athens GA.

 

Dr. Dempsey is a former President of the Georgia Society of Otolaryngology and has served as plant physician for NASA. Dr. Dempsey has practiced in all areas of otolaryngology while maintaining a specific interest in otology.

 

Dr. Dempsey attended Shorter College in Rome, Georgia and graduated in 1961 with a Bachelor of Science degree in chemistry. Following college, he obtained his medical degree from the Medical College of Georgia in 1965, and then returned to Rome to complete a one-year internship at Floyd County hospital. In 1966, Dr. Dempsey entered the United States Air Force for two years. In 1969, he began his otolaryngology residency in Atlanta at Emory and Grady Hospitals. Dr. Dempsey is particularly well versed on the science of algorithms, which his patients use to make decisions on a daily basis.

 

He is Board Certified in Otolaryngology Head and Neck Surgery. He has been a member or affiliated with the American Academy of Otolaryngology Head and Neck Surgery, American Medical Association, Georgia Society of Otolaryngology (past president), Medical Association of Georgia, Crawford W. Long Society, Fellowship of the American College of Surgeons, and the Greater Atlanta Otolaryngology Society.

 

There are no family relationships among and between our directors, officers, persons nominated or chosen by the Company to become directors or officers, or beneficial owners of more than five percent (5%) of the any class of the Company’s equity securities.

 

 

 

 

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EXECUTIVE COMPENSATION

______

 

Employment Agreements

 

Mr. Green and Mr. Gutmann have entered into an employment agreement with the Company for a term of five years. Pursuant to their employment agreements, they have agreed to devote a substantial portion of their business and professional time and efforts to our business. The employment agreement provides that each employee shall receive a salary determined by the Board of Directors commensurate with the development of the Company. They may be entitled to receive, at the sole discretion of our Board of Directors or a committee thereof, bonuses based on the achievement (in whole or in part) by the Company of our business plan and achievement by the employee of fixed personal performance objectives.

 

The following table represents information regarding the total compensation our officers and directors of the Company as of December 31, 2017:

 

Name and Principal Position Cash Compensation Other Compensation Total Compensation
Adam Green, Director, President, Director (1) $0.00 $1,855 $1,855
Eric Gutmann, Secretary-Treasurer, Director (1) $0.00 $1,520 $1,520
Jonathan Morgan – Director $0.00 $0 $0
Dr. James Edward Dempsey –Director $0.00 $0 $0
Total $0.00 $3,375 $3,375

 

(1) Consists of shares awarded at par value for compensation.

 

 

 

 

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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

 

During the last two full fiscal years and the current fiscal year or any currently proposed transaction, there is no transaction involving the Company, in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the Company’s total assets at year-end for its last three fiscal years.

  

Disclosure of Conflicts of Interest

 

There are no conflicts of interest between the Company and any of its officers or directors

 

Review, Approval or Ratification of Transactions with Related Parties

 

We have adopted a related-party transactions policy under which our executive officers, directors, nominees for election as a director, beneficial owners of more than 5% of any class of our Common Stock, and any members of the immediate family of any of the foregoing persons are not permitted to enter into a related-party transaction with us without the consent of our audit committee. If the related party is, or is associated with, a member of our audit committee, the transaction must be reviewed and approved by another independent body of our Board of Directors, such as our governance committee. Any request for us to enter into a transaction with a related party in which the amount involved exceeds $120,000 and such party would have a direct or indirect interest must first be presented to our audit committee for review, consideration and approval. If advance approval of a related-party transaction was not feasible or was not obtained, the related-party transaction must be submitted to the audit committee as soon as reasonably practicable, at which time the audit committee shall consider whether to ratify and continue, amend and ratify, or terminate or rescind such related-party transaction. All of the transactions described above were reviewed and considered by, and were entered into with the approval of, or ratification by, our Board of Directors.

 

During the last two full fiscal years and the current fiscal year or any currently proposed transaction, there are transactions involving the issuer, in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the issuer’s total assets at year-end for its last three fiscal years, except compensation awarded to executives.

 

Disclosure of Conflicts of Interest

 

There are no conflicts of interest between the Company and any of its officers or directors.

 

Employment Agreements

 

Our officers have entered into employment agreements with the Company for a term of five years. Pursuant to this employment agreement, they have agreed to devote a substantial portion of his business and professional time and efforts to our business. The employment agreement provides that each employee shall receive a salary determined by the Board of Directors commensurate with the development of the Company. He may be entitled to receive, at the sole discretion of our Board of Directors or a committee thereof, bonuses based on the achievement (in whole or in part) by the Company of our business plan and achievement by the employee of fixed personal performance objectives.

 

The employment agreements also contain covenants (a) restricting the executive from engaging in any activities competitive with our business during the terms of such employment agreements and one year thereafter, and (b) prohibiting the executive from disclosure of confidential information regarding the Company at any time.

 

The Company's directors are elected by shareholders at each annual meeting or, in the event of a vacancy, appointed by the Board of Directors then in office to serve until the next annual meeting or until their successors are duly elected and qualified. The Company's executive officers are appointed by the Board of Directors and serve at the discretion of the Board of Directors.

 

 

 

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Legal/Disciplinary History

 

None of Smart Decision, Inc.’s Officers or Directors have been the subject of any criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

None of Smart Decision, Inc.’s Officers or Directors have been the subject of any entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of competent jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person’s involvement in any type of business, securities, commodities, or banking activities;

 

None of Smart Decision, Inc.’s Officers or Directors have been the subject of any finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission, the Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or commodities law, which finding or judgment has not been reversed, suspended, or vacated; or

 

None of Smart Decision, Inc.’s Officers or Directors has been the subject of any entry of an order by a self-regulatory organization that permanently or temporarily barred, suspended or otherwise limited such person’s involvement in any type of business or securities activities.

 

Board Composition

 

Our board of directors currently consists of four members. Each director of the Company serves until the next annual meeting of stockholders and until his successor is elected and duly qualified, or until his earlier death, resignation or removal. Our board is authorized to appoint persons to the offices of Chairman of the Board of Directors, President, Chief Executive Officer, one or more vice presidents, a Treasurer or Chief Financial Officer and a Secretary and such other offices as may be determined by the board.

 

We have no formal policy regarding board diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business and understanding of our prospective markets.

 

Board Leadership Structure and Risk Oversight

 

The board of directors oversees our business and considers the risks associated with our business strategy and decisions. The board currently implements its risk oversight function as a whole. Each of the board committees when established will also provide risk oversight in respect of its areas of concentration and reports material risks to the board for further consideration.

 

Code of Business Conduct and Ethics

 

Prior to one year from the date of this Offering's qualification, we will be adopting a written code of business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer or controller, or persons performing similar functions. We will post on our website a current copy of the code and all disclosures that are required by law or market rules in regard to any amendments to, or waivers from, any provision of the code.

 

 

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PRINCIPAL STOCKHOLDERS

______

 

The following table gives information on ownership of our securities as of February 28, 2018. The following lists ownership of our Common Stock by each person known by us to be the beneficial owner of over 5% of the outstanding Common and Preferred Stock, and by our officers and directors:

 

Name (1)

Class A
Common Stock

Class B
Common Stock
Percentage of
Total Common
Outstanding (2)
Percentage of
Common Stock
Outstanding
Assuming All
Shares Offered
are Sold (3)
Adam Green

18,550,000

1,000,000 28.6 3.4
Eric Gutmann 15,200,000 900,000 23.5 2.8
James Edward Dempsey 5,500,000 0 8.0 1.0
MSB Management 6,500,000 0 9.5 1.1
GPL Ventures, LLC 6,500,000 0 9.5 1.1
Tri-Bridge Ventures, LLC 6,000,000 0 8.8 1.1
R&J Holdings 3,000,000 0 4.4 0.5
All officers and directors 61,250,000 1,900,000 92.3 2.8

 

(1) The address for all shareholders is c/o Smart Decision, Inc., 1825 Corporate Blvd. NW, #110, Boca Raton, FL 33431.

(2) Based on a total of 68,400,000 shares outstanding as of February 28, 2018.

(3) Assumes all shares offered are sold.

 

 

 

 

 

 

 

 

 

 

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DESCRIPTION OF SECURITIES

______

 

The Common Stock

 

We are authorized to issue 5,000,000,000 shares of Common Stock, $0.0001 par value. The holders of Common Stock are entitled to equal dividends and distributions, with respect to the Common Stock when, as, and if declared by the Board of Directors from funds legally available for such dividends. No holder of Common Stock has any preemptive right to subscribe for any of our stock nor are any shares subject to redemption. Upon our liquidation, dissolution or winding up, and after payment of creditors and any amounts payable to senior securities, the assets will be divided pro rata on a share-for-share basis among the holders of the shares of Common Stock. All shares of Common Stock now outstanding upon completion of this Offering and conversion of any Preferred Stock, are, and will be, fully paid, validly issued and non-assessable.

 

The Common Stock is divided into two classes: Class A and Class B. There are 4,900,000,000 designated shares of Class A and 100,000,000 designated shares of Class B. The shares of each class of Common Stock are identical except that the holders of the Class B Common Stock shall be entitled to elect a majority of the board of directors and the holders of the Class A shall elect the remainder of the directors. Each share of Class B Common Stock shall be convertible at any time into one share of Class A Common Stock at the option of the holder.

 

Holders of our Common Stock do not have cumulative voting rights, so that the holders of more than 50% of the shares voting for the election of directors will be able to elect 100% of the directors if they choose to do so, and in that event, the holders of the remaining shares will not be able to elect any members to the Board of Directors.

 

The Company has never paid any dividends to shareholders of our Common Stock. The declaration in the future of any cash or stock dividends will depend upon our capital requirements and financial position, general economic conditions, and other pertinent factors. We presently intend not to pay any cash or stock dividends in the foreseeable future. Management intends to reinvest earnings, if any, in the development and expansion of our business. No dividend may be paid on the Common Stock until all Preferred Stock dividends are paid in full.

 

Preferred Stock

 

We are authorized by our Articles of Incorporation to issue a maximum of 1,000,000,000 shares of Preferred Stock. This Preferred Stock may be in one or more series and containing such rights, privileges and limitations, including voting rights, conversion privileges and/or redemption rights, as may, from time to time, be determined by our Board of Directors. Preferred stock may be issued in the future in connection with acquisitions, financings or such other matters as the Board of Directors deems to be appropriate. In the event that any such shares of Preferred Stock shall be issued, a Certificate of Designation, setting forth the series of such Preferred Stock and the relative rights, privileges and limitations with respect thereto, shall be filed. The effect of such Preferred Stock is that our Board of Directors alone, within the bounds and subject to the federal securities laws and the Wyoming Law, may be able to authorize the issuance of Preferred Stock which could have the effect of delaying, deferring or preventing a change in control of our Company without further action by the stockholders and might adversely affect the voting and other rights of holders of Common Stock. The issuance of Preferred Stock with voting and conversion rights also may adversely affect the voting power of the holders of Common Stock, including the loss of voting control to others. To date, no such Preferred Stock has been issued.

 

The Board of Directors is expressly vested with the authority to divide any or all of the Preferred Stock into series and to fix and determine the relative rights and preferences of the shares of each series so established, provided, however, that the rights and preferences of the various series may vary only with respect to:

 

(a) the rate of dividend;

 

(b) whether the shares may be called and, if so, the call price and the terms and conditions of call;

 

(c) the amount payable upon the shares in the event of voluntary and involuntary liquidation;

 

(d) sinking fund provisions, if any for the call or redemption of the shares;

 

(e) the terms and conditions, if any, on which the shares may be converted;

 

(f) voting rights; and

 

(g) whether the shares will be cumulative, noncumulative or partially cumulative as to dividends and the dates from which any cumulative dividends are to accumulate.

 

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The Board of Directors shall exercise the foregoing authority by adopting a resolution setting forth the designation of each series and the number of shares therein, and fixing and determining the relative rights and preferences thereof. The Board of Directors may make any change in the designations, terms, limitations or relative rights or preferences of any series in the same manner, so long as no shares of such series are outstanding at such time.

 

Within the limits and restrictions, if any, stated in any resolution of the Board of Directors originally fixing the number of shares constituting any series, the Board of Directors is authorized to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any series subsequent to the issue of shares of such series. In case the number of shares of any series shall be so decreased, the share constituting such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series.

 

Certain Provisions

 

Certain provisions of our Articles of Incorporation and By-Laws may make it more difficult and time-consuming to acquire the Company, thereby reducing our vulnerability to an unsolicited proposal for our takeover. These provisions are outlined below.

 

Our Articles also contain restrictions regarding certain mergers, consolidations, asset sales and other "Business Combinations." "Business Combinations" are defined in the Articles of Incorporation. The above provisions could have the effect of depriving shareholders of any opportunity to sell their shares at a premium over prevailing market prices because takeovers frequently involve purchases of stock directly from shareholders at such a premium price. Further, to the extent these provisions make it less likely that a takeover attempt opposed by our incumbent Board of Directors and management will succeed, the effect could be to assist the Board of Directors and management in retaining their existing positions. In addition, our Articles also provide that the provisions outlined herein cannot be amended, altered, repealed, or replaced without a "super-majority" vote or the approval of a Majority of Continuing Directors.

 

Among other provisions that might make it more difficult to acquire us, we have adopted the following:

 

Staggered Board. Our Board of Directors has been divided into three classes of directors. The term of one class will expire each year. Directors for each class will be chosen for a three-year term upon the expiration of such class’s term, and the directors in the other two classes will continue in office. The staggered terms for directors may affect the stockholders’ ability to change control of the Company even if a change in control were in the stockholders’ interest.

 

Preferred StockOur charter authorizes the Board of Directors to issue up to 1,000,000,000 shares of Preferred Stock and to establish the preferences and rights (including the right to vote and the right to convert into shares of Common Stock) of any shares issued. The power to issue Preferred Stock could have the effect of delaying or preventing a change in control of the Company even if a change in control were in the stockholders’ interest.

 

Our Articles also authorize the Board of Directors to oppose a tender offer on the basis of factors other than economic benefit to our shareholders. Among the factors that may be considered are the impact our acquisition would have on the community, the effect of the acquisition upon our employees and the reputation and business practices of the tender offeror.

 

Our Articles of Incorporation also contain restrictions regarding certain merger, consolidations, asset sales and other "Business Combinations" involving the Company or its subsidiaries. Business Combinations are defined in the Articles as (a) any merger or consolidation by us with an Interested Stockholder, (defined as a holder of at least 10% of our voting stock with certain exceptions), or (b) any sale, lease or similar disposition to an Interested Stockholder of any of our assets constituting at least 5% of our total assets, or (c) the issuance or transfer by the Company of any of our stock to an Interested Stockholder in return for cash or other property, being at least 5% of our total assets, or (d) adoption of any plan to dissolve or liquidate the Company proposed by an Interested Stockholder, or (e) any reclassification of stock or recapitalization of the Company or merger whereby the percentage of outstanding shares of any Interested Stockholder is increased.

 

 

 

 

 

 

 39 

 

 

Business Combinations with an interested Stockholder must be approved by the holders of 80% of the voting power of our outstanding shares, unless (a) the Business Combination is approved in advance by those persons then on the Board of Directors who were directors immediately prior to the time the Interested Stockholder (or certain of its predecessors) first became an Interested Stockholder and who would have constituted a majority of the Board at that time (a "Majority of the Continuing Directors"), or (b) certain minimum "fair price" requirements are met. In evaluating a Business Combination, the Board of Directors may consider the financial aspects of the offer, the long-term interests of our shareholders, past and present market values of the shares, our prospects, the prospect of obtaining a better offer, the impact, if the offer is partial or two-tier, on the remaining shareholders and our future (especially with regard to the background of the offeror), the value of non-cash consideration, legal matters, the effect of the transaction on our customers and local community interests.

 

The above provisions could have the effect of depriving shareholders of any opportunity to sell their shares at a premium over prevailing market prices because takeovers frequently involve purchases of stock directly from shareholders at such a premium price. Further, to the extent these provisions make it less likely that a takeover attempt opposed by our incumbent Board of Directors and management will succeed, the effect could be to assist the Board of Directors and management in retaining their existing positions. In addition, our Articles of Incorporation also provide that the provisions outlined herein cannot be amended, altered, repealed, or replaced without the "super-majority" vote described above or the approval of a Majority of the Continuing Directors as defined above.

 

By-Laws

 

Our By-Laws contain an exclusive forum provision providing that unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the General Corporation Law or the Certificate of Incorporation or By-Laws (as either may be amended from time to time), or (iv) any action asserting a claim governed by the internal affairs doctrine shall be the court of appropriate jurisdiction under the law of the Corporation's State of corporate domicile (or, if this court does not have jurisdiction, the federal district court for the District of the Corporation's State of corporate domicile).

 

This provision may discourage shareholder lawsuits or limit shareholders’ ability to obtain a favorable judicial forum disputes with the company and its directors, officers or other employees.

 

Our By-Laws contain an exclusive forum provision that may discourage shareholder lawsuits.

 

Our By-Laws contain an exclusive forum providing that unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the General Corporation Law or the Certificate of Incorporation or By-Laws (as either may be amended from time to time), or (iv) any action asserting a claim governed by the internal affairs doctrine shall be the court of appropriate jurisdiction under the law of the Corporation's State of corporate domicile (or, if this court does not have jurisdiction, the federal district court for the District of the Corporation's State of corporate domicile).

 

This provision may discourage shareholder lawsuits or limit shareholders’ ability to obtain a favorable judicial forum disputes with the company and its directors, officers or other employees.

 

Our By-Laws include a mandatory arbitration provision which may discourage shareholder litigation and enforcement of shareholder rights. The By-Laws provide that any disagreement, dispute, controversy or claim arising out of or relating to the Company Agreement shall be settled by final and binding arbitration administered by the America Arbitration Association in Boca Raton, Florida. Further, neither the Claiming Party nor the Company nor the arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all parties. This may have the effect of discouraging shareholder litigation and enforcement of shareholder rights.

 

 

 

 40 
 

 

 

DIVIDEND POLICY

______

 

We have never declared or paid cash dividends on our capital stock. We currently intend to retain any future earnings for use in the operation of our business and do not intend to declare or pay any cash dividends in the foreseeable future. Any further determination to pay dividends on our capital stock will be at the discretion of our Board of Directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our Board of Directors considers relevant.

 

SECURITIES OFFERED

______

 

Current Offering

 

Smart Decision, Inc. (“Smart Decision, Inc.,” “We,” or the “Company”) is offering up to $5,000,000 total of Securities, consisting of Class A Common Stock, $0.0001 par value (the “Common Stock” or collectively the “Securities”).

 

The Common Stock

 

We are authorized to issue 5,000,000,000 shares of Common Stock, $0.0001 par value. The holders of Common Stock are entitled to equal dividends and distributions, with respect to the Common Stock when, as, and if declared by the Board of Directors from funds legally available for such dividends. No holder of Common Stock has any preemptive right to subscribe for any of our stock nor are any shares subject to redemption. Upon our liquidation, dissolution or winding up, and after payment of creditors and senior securities, the assets will be divided pro rata on a share-for-share basis among the holders of the shares of Common Stock. All shares of Common Stock now outstanding upon completion of this Offering are, and will be, fully paid, validly issued and non-assessable.

 

Holders of our Common Stock do not have cumulative voting rights, so that the holders of more than 50% of the shares voting for the election of directors will be able to elect 100% of the directors if they choose to do so. In that event, the holders of the remaining shares will not be able to elect any members to the Board of Directors.

 

Transfer Agent

 

Our transfer agent is Olde Monmouth Stock Transfer Co., Inc., 5200 Memorial Parkway, Suite 101, Atlantic Highlands, New Jersey 07716, Phone: (732) 872-2727. The transfer agent is registered under the Exchange Act and operates under the regulatory authority of the SEC and FINRA.

 

 

 

 41 

 

 

SHARES ELIGIBLE FOR FUTURE SALE

_____

 

Prior to this Offering, there has been a limited market for our Common Stock. Future sales of substantial amounts of our Common Stock, or securities or instruments convertible into our Common Stock, in the public market, or the perception that such sales may occur, could adversely affect the market price of our Common Stock prevailing from time to time. Furthermore, because there will be limits on the number of shares available for resale shortly after this Offering due to contractual and legal restrictions described below, there may be resales of substantial amounts of our Common Stock in the public market after those restrictions lapse. This could adversely affect the market price of our Common Stock prevailing at that time.

 

Rule 144

 

In general, a person who has beneficially owned restricted shares of our Common Stock for at least twelve months, in the event we are a reporting company under Regulation A, or at least six months, in the event we have been a reporting company under the Exchange Act for at least 90 days before the sale, would be entitled to sell such securities, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the 90 days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:

 

·1% of the number of shares of our Common Stock then outstanding; or
·the average weekly trading volume of our Common Stock during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

 

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.

 

LEGAL MATTERS

_____

 

Certain legal matters with respect to the shares of common stock offered hereby will be passed upon by John E. Lux, Esq. of Washington, D.C.

 

EXPERTS

______

 

The financial statements dated as of December 31, 2017 included in this Offering Circular have been audited by Salberg & Company, P.A., an independent registered public accounting firm, as stated in their report appearing herein. Such financial statements have been so included in reliance upon the report of such firm given on their authority as experts in accounting and auditing.

 

WHERE YOU CAN FIND MORE INFORMATION

______

 

We have filed with the SEC a Regulation A Offering Statement on Form 1-A under the Securities Act with respect to the shares of common stock offered hereby. This Offering Circular, which constitutes a part of the Offering Statement, does not contain all of the information set forth in the Offering Statement or the exhibits and schedules filed therewith. For further information about us and the common stock offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or other document that is filed as an exhibit to the Offering Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Offering Statement. Upon the completion of this Offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Securities Exchange Act of 1934. You may read and copy this information at the SEC's Public Reference Room, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, including us, that file electronically with the SEC. The address of this site is www.sec.gov.

 

 

 

 

 42 

 

 

INDEX TO FINANCIAL STATEMENTS

 

 

Report of Independent Registered Public Accounting Firm F-2
Balance Sheet as of December 31, 2017 F-3
Statement of Operations for the Period September 5, 2017 (Inception) through December 31, 2017 F-4
Statement of Changes Stockholders’ Deficit for the Period September 5, 2017 (Inception) through December 31, 2017 F-5
Statement of Cash Flows for the Period September 5, 2017 (Inception) through December 31, 2017 F-6
Notes to Financial Statements as of December 31, 2017 F-7

 

 

 

 

 

 

 

 

 

 

 

 

 

 F-1 

 

 

 

 

Report of Independent Registered Public Accounting Firm

 

To the Shareholders and the Board of Directors of:

Smart Decision, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheet of Smart Decision, Inc. (the “Company”) as of December 31, 2017, the related statements of operations, changes in stockholders’ deficit and cash flows from September 5, 2017 (Inception) through December 31, 2017, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017, and the results of its operations and its cash flows from September 5, 2017 (inception) through December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, at December 31, 2017 the Company had an accumulated deficit of $12,107, a stockholders’ deficit of $8,732 and a working capital deficiency of $8,732. In 2017 the Company had a net loss and net cash used in operating activities of $12,107 and $3,191, respectively and the Company has not generated any revenues as of the date of this report. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plan regarding these matters is also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 

 

 

/s/ Salberg & Company, P.A.

 

SALBERG & COMPANY, P.A.

We have served as the Company’s auditor since January 2018

Boca Raton, Florida

March 19, 2018

 

2295 NW Corporate Blvd., Suite 240 • Boca Raton, FL 33431

Phone: (561) 995-8270 • Toll Free: (866) CPA-8500 • Fax: (561) 995-1920

www.salbergco.com • info@salbergco.com

Member National Association of Certified Valuation Analysts • Registered with the PCAOB

Member CPAConnect with Affiliated Offices Worldwide Member Center for Public Company Audit Firms

 F-2 

 

 

SMART DECISION, INC.

BALANCE SHEET

DECEMBER 31, 2017

 

     
ASSETS    
     
CURRENT ASSETS:     
Cash  $4,009 
TOTAL CURRENT ASSETS   4,009 
      
      
TOTAL ASSETS  $4,009 
      
      
LIABILITIES AND STOCKHOLDERS' DEFICIT     
      
CURRENT LIABILITIES:     
Accrued expenses  $5,500 
Accrued interest   41 
Convertible note   6,000 
Note payable – related party   1,200 
TOTAL CURRENT LIABILITIES   12,741 
      
      
STOCKHOLDERS' DEFICIT     
      
Preferred stock; par value $0.0001; 1,000,000,000 shares authorized; none issued and outstanding    
Common stock; par value $0.0001; 5,000,000,000 shares authorized;     
Common stock – Class A; 4,900,000,000 shares designated; 33,750,000 issued and outstanding   3,375 
Common stock – Class B 100,000,000 shares designated; none issued and outstanding    
Accumulated deficit   (12,107)
TOTAL STOCKHOLDERS’ DEFICIT   (8,732)
      
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT  $4,009 

 

The accompanying notes are an integral part of these financial statements

     

 

 

 F-3 

 

 

 

SMART DECISION, INC.

STATEMENT OF OPERATIONS

FOR THE PERIOD SEPTEMBER 5, 2017 (INCEPTION) THROUGH DECEMBER 31, 2017

 

REVENUES  $ 
      
OPERATING EXPENSES     
Accounting   3,000 
Bank Charges   62 
Compensation   3,375 
Computer and internet   81 
General and administrative   473 
Legal   5,000 
Office supplies   27 
Software license fees   48 
      
Total operating expenses   12,066 
      
LOSS FROM OPERATIONS   (12,066)
      
OTHER (EXPENSE)     
Interest expense   (41)
Total other expense   (41)
      
LOSS BEFORE INCOME TAX PROVISION   (12,107)
      
INCOME TAX PROVISION    
      
NET LOSS  $(12,107)
      
NET LOSS PER SHARE  $ 
      
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING   33,750,000 

 

The accompanying notes are an integral part of these financial statements

 

 

 

 F-4 

 

 

SMART DECISION, INC.

STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE PERIOD SEPTEMBER 5, 2017 (INCEPTION) THROUGH DECEMBER 31, 2017

 

   Common Stock - Class A   Accumulated     
   Shares   Amount   Deficit   Total 
                 
Shares issued to Founders for Services   33,750,000   $3,375   $   $3,375 
                     
Net loss for the period September 5, 2017 (inception) through December 31, 2017           (12,107)   (12,107)
                     
Balance, December 31, 2017   33,750,000   $3,375   $(12,107)  $(8,732)

 

 

The accompanying notes are an integral part of these financial statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 F-5 

 

 

SMART DECISION, INC.

STATEMENT OF CASH FLOWS

FOR THE PERIOD SEPTEMBER 5, 2017 (INCEPTION) THROUGH DECEMBER 31, 2017

 

Cash Flows from Operating Activities:    
Net Loss  $(12,107)
Adjustments to reconcile net loss to net cash used in operating activities:     
Stock compensation   3,375 
Changes in Operating Assets and Liabilities:     
Increase in accrued expenses   5,500 
Increase in accrued interest   41 
Net cash used in operating activities   (3,191)
      
Cash Flows from Financing Activities:     
Loans from convertible debentures   6,000 
Loan from related party   1,200 
Net cash provided by financing activities   7,200 
      
Net Increase in cash   4,009 
Cash at the Beginning of the Period    
Cash at the End of the Period  $4,009 
      
Supplemental Disclosure:     
Cash paid for interest    
Income taxes paid    

 

   

 

The accompanying notes are an integral part of these financial statements

 

 

 

 

 F-6 

 

 

SMART DECISION, INC.

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2017

 

 

Note 1 – Nature of Operations and Basis of Presentation

 

Smart Decision, Inc. (the “Company”) was incorporated in the state of Wyoming on September 5, 2017. The Company has researched and developed an algorithm for the consumer and business LED Lighting Market. With the Company’s patent pending “Smart Decision” algorithm, consumers should be able to select the right LED bulbs/fixtures by answering a handful of consumer-friendly questions. Ultimately, selecting the right product the first time dramatically cuts down on product returns for retailers and creates a positive purchasing experience for the consumer. The Company intends to develop additional algorithms for other consumer categories in the future.

 

Risks and Uncertainties

 

The Company has not commenced planned principal operations. Our activities since inception include devoting substantially all of our efforts to business planning and development. Additionally, the Company has allocated a substantial portion of time and investment to the completion of our development activities to launch our marketing plan and generate revenues and to raising capital. The Company has generated no revenue from operations. The Company’s activities during this early stage are subject to significant risks and uncertainties.

 

Going Concern

 

The accompanying financial statements are prepared assuming the Company will continue as a going concern. At December 31, 2017, the Company had an accumulated deficit of $12,107, a stockholders’ deficit of $8,732 and a working capital deficiency of $8,732. In 2017 the Company had a net loss and cash used in operating activities of $12,107 and $3,191 respectively and the Company has not generated any revenues as of the date of this report. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issue date of this report. The ability of the Company to continue as a going concern is dependent upon initiating sales and obtaining additional capital and financing. As of the date of this report no funds have been raised and no future commitments have been received. There is currently no public market for our common stock. While the Company believes in the viability of its strategy to initiate sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The financial statements do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

 

Note 2 - Summary of Significant Accounting Policies

 

This summary of significant account policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and the notes are the representation of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles (“US GAAP”) and have been consistently applied in the preparation of the financial statements.

 

Use of Estimates

  

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the valuation of stock compensation.

 

Fair Value of Financial Instruments

  

For certain of the Company’s financial instruments, including cash and cash equivalents and accrued expenses, the carrying amounts approximate fair value due to their short maturities.

 

 

 F-7 

 

SMART DECISION, INC.

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2017

 

 

Cash and Cash Equivalents

 

Cash comprises cash held on demand with banks. The Company considers all highly liquid investments with original maturities of 90 days or less to be cash equivalents. There were no cash equivalents at December 31, 2017.

 

Income Taxes

 

Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

 

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

 

Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations

 

Business segments

 

ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment as of December 31, 2017.

 

Fair Value Measurements

 

On September 5, 2017, the Company adopted ASC 820-10, “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:


Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

 

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The Company did not identify any recurring or non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with ASC 815.

 

 

 F-8 

 

SMART DECISION, INC.

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2017

 

 

Borrowings

 

Borrowings are recognized initially at cost which is the fair value of the proceeds received, net of transaction costs incurred or beneficial conversion feature values which are recorded as debt discounts. In subsequent periods, borrowings are stated at amortized cost using the effective yield method; any difference between fair value of the proceeds (net of transaction costs) and the redemption amount is recognized as interest expense over the period of the borrowings.

 

Stock-Based Compensation

 

The Company records stock-based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its employee stock and stock option awards. This standard requires that such transactions be accounted for using a fair-value-based method.

 

Net Income per Share

 

The Company computes net income (loss) per share in accordance with ASC 260-10, “Earnings Per Share.” The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per share gives effect to all dilutive potential common shares outstanding during the period using the “as if converted” basis. For the period ended December 31, 2017 there were 60,000,000 potential dilutive securities related to convertible notes.

 

Recent Accounting Pronouncements

 

The Company has implemented all other new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

Note 3 – Convertible note and note payable related party

     
Convertible Note and Note payable related party consist of the following at December 31, 2017;    
     
Convertible note dated December 14, 2017, interest accruing at 10%, convertible at the lesser of (i) $0.0001 or (ii) Fifty percent of the lowest trading price in the twenty days prior to the day of conversion, and maturity date of December 14, 2018. Conversion at any date is limited to (i) the number of shares of common stock beneficially held by holder and its affiliates and (ii) 9.99% of outstanding shares of common stock of the company and the note is subject to customary default provisions and liquidated damages of $500 per day per default.  $6,000 
      
Note payable – related party, dated October 29, 2017; interest accruing at 8%, maturity November 9, 2018   1,200 
      
Total  7,200 
Less Current Portion   (7,200)
Long Term Notes Payable  $ 

 

 

 

 F-9 

 

SMART DECISION, INC.

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2017

 

 

Note 4 - Equity

 

On February 16, 2018 the Company amended its articles of incorporation to authorize 5,000,000,000 shares of Common Stock having a par value of $0.0001 and to divide its Common Stock into two classes: Class A and Class B. There are 4,900,000,000 designated shares of Class A and 100,000,000 designated shares of Class B. The shares of each class of Common Stock are identical except that the holders of the Class B Common Stock shall be entitled to elect a majority of the board of directors and the holders of the Class A shall elect the remainder of the directors. Each share of Class B Common Stock shall be convertible at any time into one share of Class A Common Stock at the option of the holder. The presentation of the authorized and designated shares has been retroactively applied to the balance sheet.

 

As part of the amendment the Company also added 1,000,000,000 shares of Preferred Stock having a par value of $0.0001 per share. The board of directors is expressly vested with the authority to fix and determine the relative rights and preferences of the shares of each series so established, however, that the rights and preferences of the various series may vary with only respect to the rate of dividend; whether the shares may be called and, if so, the call price and the terms and conditions of call; the amount payable upon the shares in the event of voluntary and involuntary liquidation; sinking fund provisions; the terms and conditions, if any, on which the shares may be converted; voting rights; and whether the shares will be cumulative , noncumulative, or partially cumulative as to dividends and the dates from which any cumulative dividends are to accumulate.

 

In September 2017 the Company granted 33,750,000 Class A common shares to two founders for services. The shares were valued at a nominal value of $0.0001 per share for a total of $3,375 which was charged to compensation expense.

  

Note 5 – Income Taxes Payable

 

As of December 31, 2017, the Company had approximately $12,107 in net operating loss carry forwards for federal income tax purposes which may be carried forward through 2037. Generally, these can be carried forward and applied against future taxable income at the tax rate applicable at that time. The Company is currently using a 15% effective tax rate for our projected available net operating loss carry-forward.  The Company’s use of these NOLs may be limited under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended.

 

Components of deferred tax assets and liabilities are as follows:

   December 31, 2017 
Net operating loss carryforward  $1,816 
      
Valuation Allowance   (1,816)
Net Deferred Tax Assets  $0 

 

A reconciliation of the effective tax rate with the statutory Federal income tax rate was as follows for the period September 5, 2017 (inception) to December 31, 2017:

 

   From September 5, 2017 (inception) to December 31, 2017: 
Federal statutory rate   (15%)
State taxes, net of credits   (6%)
Change in valuation allowance   21% 
Effective tax rate   0% 

 

In accordance with FASB ASC 740 “Income Taxes”, valuation allowances are provided against deferred tax assets, if based on the weight of available evidence, some or all of the deferred tax assets may or will not be realized. The Company has evaluated its ability to realize some or all of the deferred tax assets on its balance sheet for the coming year and has established a valuation allowance in the amount of $1,816 at December 31, 2017.

 

 

 

 F-10 

 

SMART DECISION, INC.

NOTES TO FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2017

 

 

Note 6 – Related Party Transactions

 

For the purposes of these financial statements, parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.

 

Related parties may enter into transactions which unrelated parties might not, and transactions between related parties may not be effected on the same terms, conditions and amounts as transactions between unrelated parties.

 

On October 29, 2017 the Company entered into a loan agreement with an officer of the Company for $1,200. The terms of the note are disclosed in Note 3.

 

Note 7 – Subsequent Events

 

In February 2018 the Company amended its articles of incorporation to increase its authorized shares and divide its Common Stock into two classes of Common Stock and included the addition of Preferred Stock. See Note 4 for the rights and designations of both the Common and Preferred Stock.

 

On February 6, 2018, the Board of Directors granted the Company’s CEO, 1,000,000 shares of class B Common, and the Company’s, treasurer, 900,000 shares of class B Common Stock valued at a nominal $0.0001 per share for services rendered, or $190.

 

On February 6, 2018 LED Technology Group LLC, an affiliate, assigned its patent for a lighting apparatus with light-emitting diode chips and remote phosphor layer to the Company. On February 2, 2018 the CEO and Treasurer of the Company assigned their patent pending for a method for an LED product filtering engine to the Company. There was no consideration paid or due for those assignments.

 

In February 2018 the Company sold 32,750,000 shares of Class A Common Stock to investors at $0.0001 per share for a total cash consideration of $3,275.

 

On February 16, 2018 the Company entered into an employment agreement with the Company’s treasurer. The term of the agreement is for five years and may be extended in one year increments thereafter. Compensation under the agreement will include a base salary and an annual bonus as determined by the Board of Directors.

 

On February 15, 2018 the Company entered into an employment agreement with the Company’s CEO. The term of the agreement is for five years and may be extended in one year increments thereafter. Compensation under the agreement will include a base salary and an annual bonus as determined by the Board of Directors.

 

On February 22, 2018 the Company entered into an employment agreement with Jonathan Morgan, a director for the Company. The agreement may be terminated at the option of the Company for Cause. Compensation under the agreement will include a base compensation as determined by the disinterested Board of Directors.

 

On February 28, 2018 the Company entered into an employment agreement with Dr. James Edward Dempsey, a director for the Company. The agreement may be terminated at the option of the Company for Cause. Compensation under the agreement will include a base compensation as determined by the disinterested Board of Directors.

 

The Company has evaluated events subsequent to the balance sheet date through March 19, 2018 the date these financial statements were available to be issued and has determined there are no other events that would require adjustment to, or disclosure in, the financial statements.

 

 

 

 F-11 

 

  

PART III—EXHIBITS

 

Index to Exhibits

 

Exhibit   
Number Exhibit Description
   
2.1 Articles of Incorporation
2.2 Bylaws
3.1 Specimen Stock Certificate
6.4 Employment Agreement of Adam Green
6.5 Employment Agreement of Eric Gutmann
11.1 Consent of Lux Law, P.A. (included in Exhibit 12.1)
11.2 Consent of Salberg & Co, P.A.
12.1 Opinion of Lux Law, P.A.
99.1 Patent
99.2 Patent Application

  

 

 

 

 

 

 

 

 

 III-1 

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Boca Raton, State of Florida, on May 1, 2018.

 

(Exact name of issuer as specified in its charter): Smart Decision, Inc.

    

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

 

By (Signature and Title): /s/ Adam Green                                                                                          
  Adam Green, Chief Executive Officer (Principal Executive Officer).

 

Date: May 1, 2018

 

/s/ Eric Gutmann                                                                     

Eric Gutmann, Chief Financial Officer (Principal Financial Officer, Principal Accounting Officer).

 

Date: May 1, 2018

 

 

SIGNATURES OF DIRECTORS:

 

/s/ Adam Green                           May 1, 2018
Adam Green, Director Date

 

 

 

 III-2 

 

EX1A-2A CHARTER 3 smart_1a-ex0201.htm ARTICLES OF INCORPORATION

Exhibit 2.1

 

 

 

 

 

 

 

 

 

____________

 

Amended and Restated

Articles of Incorporation

of

Smart Decision, Inc.

 

 

____________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   
 

 

Karen Wheeler, WY Dep Sec of State

FILED: 02/27/2018 01:08 PM

Original ID: 2017-000767592

Amendment ID: 2018-002252844

 

Amended and Restated

Articles of Incorporation

of

Smart Decision, Inc.

_____________

 

Pursuant to the provisions of Wyoming corporation law, this Wyoming Profit Corporation adopts the following Amended and Restated Articles of Incorporation:

 

1. The name of the Corporation is Smart Decision, Inc.

 

2. The duration of the Corporation is perpetual.

 

3. The address of the registered office in the State of Wyoming is 30 North Gould Street, Suite R, Sheridan, WY 82801 and the name of the registered agent at such address is Registered Agents Inc.

 

4. The purposes for which the Corporation is organized are:

 

(a)   To engage, without limitation, in any lawful activity for which corporations may be organized under the Laws of the State of Wyoming.

 

(b)   To do such acts in pursuit of its general purposes as are not forbidden by the laws of the State of Wyoming, as now in force or hereafter may be in force, including, but not limited to, the following:

 

(1) To sue, be sued, complain, and defend in its corporate name;

 

(2) To have a corporate seal which may be altered at will, and to use it, or a facsimile of it, by impressing or affixing it or in any other manner reproducing it;

 

(3) To make and amend bylaws, not inconsistent with its articles of incorporation or with the laws of this state, for managing the business and regulating the affairs of the corporation;

 

(4) To purchase, receive, lease, or otherwise acquire, own, hold, improve, use, and otherwise deal with real or personal property or any legal or equitable interest in property, wherever located;

 

(5) To sell, convey, mortgage, pledge, lease, exchange, and otherwise dispose of all or any part of its property;

 

(6) To purchase, receive, subscribe for, or otherwise acquire, own, hold, vote, use, sell, mortgage, lend, pledge, or otherwise dispose of, and deal in and with shares or other interests in, or obligations of, any other entity;

 

(7) To make contracts and guarantees, incur liabilities, borrow money, issue its notes, bonds, and other obligations (which may be convertible into or include the option to purchase other securities of the corporation), and secure any of its obligations by mortgage or pledge of any of its property, franchises, or income;

 

(8) To lend money, invest and reinvest its funds, and receive and hold real and personal property as security for repayment;

 

 

 

 1 

 

 

(9) To be a promoter, partner, member, associate, or manager of any partnership, joint venture, trust, or other entity;

 

(10) To conduct its business, locate offices, and exercise the powers granted by this chapter within or without this state;

 

(11) To elect directors and appoint officers, employees, and agents of the corporation, define their duties, fix their compensation, and lend them money and credit;

 

(12) To pay pensions and establish pension plans, pension trusts, profit sharing plans, share bonus plans, share option plans, and benefit or incentive plans for any or all of its current or former directors, officers, employees, and agents;

 

(13) To make donations for the public welfare or for charitable, scientific, or educational purposes;

 

(14) To transact any lawful business that will aid governmental policy;

 

(15) To provide insurance for its benefit on the life or physical or mental ability of any of its directors, officers, or employees or any other person whose death or physical or mental disability might cause financial loss to the corporation; or, pursuant to any contractual arrangement with any shareholder concerning the reacquisition of shares owned by him at his death or disability, on the life or physical or mental ability of that shareholder, for the purpose of carrying out such contractual arrangement; or, pursuant to any contract obligating the corporation, as part of compensation arrangements, or pursuant to any contact obligating the corporation as guarantor or surety, on the life of the principal obligor, and for these purposes the corporation is deemed to have an insurable interest in such persons; and

 

(16) To make payments or donations or do any other act not inconsistent with law that furthers the business and affairs of the corporation.

 

5. The maximum number of shares which the Corporation shall have the authority to issue is:

 

(a) 5,000,000,000 (Five Billion) Shares of Common Stock having a par value of $0.0001; and

 

(b) 1,000,000,000 (One Billion) Shares of Preferred Stock having a par value of $0.0001 per share or as authorized, such Preferred Stock being issuable in one or more series as hereinafter provided.

 

No holder of any class of stock of the Corporation shall be entitled, as a right, to purchase or subscribe for any part of any class of stock of the Corporation now authorized or hereafter authorized by any amendment of the Certificate of Incorporation, or of any bonds, debentures, or other securities convertible into or evidencing any rights to purchase or subscribe for any stock of the Corporation; and any stock now authorized or any such additional authorized issue of any stock or any securities convertible into or evidencing rights to purchase or subscribe for stock may be issued and disposed of by the Board of Directors to such firms, person, corporation or association for such consideration and upon such terms and in such manner as the Board of Directors may in its discretion determine without offering any thereof on the same terms, or on any terms, to the shareholders, or to any class of shareholders.

 

 

 

 2 

 

 

The preferences, restriction and qualifications applicable to the Common Stock and the Preferred Stock are as follows:

 

PART A - COMMON STOCK

 

The Common Stock of the Company shall be divided into two classes: Class A and Class B. There shall be Four Billion, Nine Hundred Million (4,900,000,000) shares of Class A Common Stock and One Hundred Million (100,000,000) shares of Class B common stock. The shares of each class of Common Stock shall be identical except that the holders of the Class B Common Stock shall be entitled to elect a majority of the Board of Directors and the holders of the Class A Common Stock shall elect the remainder of the directors. Each share of Class B Common Stock shall be convertible at any time into one share of Class A Common Stock at the option of the holder.

 

Each holder of Common Stock shall be entitled to one vote for each share of such stock standing in his name on the books of the Corporation.

 

After the payment or declaration and setting aside for payment of the full cumulative dividends for all prior and then current dividend periods; all outstanding shares of Preferred Stock and after setting aside all stock purchase funds or sinking funds heretofore required to be set aside with respect to the Preferred Stock, dividends on the Common Stock may be declared and paid, but only when and as determined by the Board of Directors.

 

On any dissolution, liquidation or winding up of the Corporation, after there shall have been paid to or set aside for the holders of all outstanding shares of Preferred Stock the full preferential amount to which they are respectively entitled to receive, pro rata in accordance with the number of shares of each class outstanding, all the remaining assets of the Corporation will be available for distribution to its common shareholders.

 

PART B - PREFERRED STOCK

 

The Board of Directors is expressly vested with the authority to divide any or all of the Preferred Stock into series and to fix and determine the relative rights and preferences of the shares of each series so established, provided, however, that the rights and preferences of the various series may vary only with respect to:

 

(a) the rate of dividend;

 

(b) whether the shares may be called and, if so, the call price and the terms and conditions of call;

 

(c) the amount payable upon the shares in the event of voluntary and involuntary liquidation;

 

(d) sinking fund provisions, if any for the call or redemption of the shares;

 

(e) the terms and conditions, if any, on which the shares may be converted;

 

(f) voting rights; and

 

(g) whether the shares will be cumulative, noncumulative or partially cumulative as to dividends and the dates from which any cumulative dividends are to accumulate.

 

The Board of Directors shall exercise the foregoing authority by adopting a resolution setting forth the designation of each series and the number of shares therein, and fixing and determining the relative rights and preferences thereof. The Board of Directors may make any change in the designations, terms, limitations or relative rights or preferences of any series in the same manner, so long as no shares of such series are outstanding at such time.

 

Within the limits and restrictions, if any, stated in any resolution of the Board of Directors originally fixing the number of shares constituting any series, the Board of Directors is authorized to increase or decrease (but not below the number of shares of such series then outstanding) the number of shares of any series subsequent to the issue of shares of such series. In case the number of shares of any series shall be so decreased, the share constituting such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series.

 

6. The Corporation will not commence business until consideration of One Thousand Dollars ($1,000.00) has been received for the issue of shares.

 

7. The shareholders of the Corporation may take any action which they are required or permitted to take without a meeting on written consent, setting forth the action so taken, signed by all of the persons or entities entitled to vote thereon.

 

 

 

 3 

 

 

8. A. Any Business Combination Transaction (as defined in Section 8.B (3) below) shall require the affirmative vote of the holders of at least 66% of the voting power of all of the shares of capital stock of the Corporation then entitled to vote generally in the election of directors, voting together as a single class. Such affirmative vote shall be required, notwithstanding the fact that no vote may be required, or that a lesser percentage may be specified, by law or in any agreement with any national securities exchange or otherwise.

 

B. For the purposes of this Paragraph 8:

 

(1) "Affiliate" or "Associate" shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as in effect on February 31, 1994.

 

(2) "Beneficial Owner" shall have the meaning ascribed to such term in Rule 12d3 of the General Rules and Regulations under the Exchange Act, as in effect on February 31, 1994.

 

(3) "Business Combination Transaction" shall mean:

 

(a) any merger or consolidation of the Corporation or any Subsidiary with (i) an Interested Stockholder or (ii) any other Person (whether or not itself an Interested Stockholder) which is, or after such merger or consolidation would be, an Affiliate or Associate of an Interested Stockholder; or

 

(b) any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions) to or with, or proposed by or on behalf of, an Interested Stockholder or an Affiliate or Associate of an Interested Stockholder, of any assets of the Corporation or any Subsidiary constituting not less than 5% of the total assets of the Corporation as reported in the consolidated balance sheet of the Corporation as of the end of the most recent quarter with respect to which such balance sheet has been prepared; or

 

(c) the issuance or transfer by the Corporation or any Subsidiary (in one transaction or any series of transactions) of any securities of the Corporation or any Subsidiary to, or proposed by or on behalf of an Interested Stockholder in exchange for cash, securities or other property (or a combination thereof) constituting not less than 5% of the total assets of the Corporation as reported in the consolidated balance sheet of the Corporation as of the end of the most recent quarter with respect to which such balance sheet has been prepared; or

 

(d) the adoption of any plan or proposal for the liquidation or dissolution of the Corporation, or any spin-off or split-up or any kind of the Corporation or any Subsidiary, proposed by or on behalf of an Interested Stockholder or an Affiliate or Associate of an Interested Stockholder; or

 

(e) any reclassification of securities (including any reverse stock split), or recapitalization of the Corporation, or any merger or consolidation of the Corporation with any Subsidiary or any other transaction (whether or not with or into or otherwise involving an Interested Stockholder) which has the effect, directly or indirectly, of increasing the percentage of the outstanding shares of (i) any class of equity securities of the Corporation or any Subsidiary or (ii) any class of securities of the Corporation or any Subsidiary convertible into equity securities of the Corporation or any Subsidiary, represented by securities of such class which are directly or indirectly owned by an Interested Stockholder and all of its Affiliates and Associates.

 

(4) "Continuing Director" means (a) any member of the Board of Directors of the Corporation who (i) is neither the Interested Stockholder involved in the Business Combination Transaction as to which a vote of Continuing Directors is provided hereunder, nor an Affiliate, Associate, employee, agent, or nominee of such Interested Stockholder, or the relative of any of the foregoing, and (ii) was a member of the Board of Directors of the Corporation prior to the time that such Interested Stockholder became an Interested Stockholder, and (b) any successor of a Continuing Director described in clause (a) who is recommended or elected to succeed a Continuing Director by the affirmative vote of a majority of Continuing Directors then on the Board of Directors of the Corporation.

 

(5) "Fair Market Value" means: (a) in the case of stock, the highest closing sale price during the 30-day period immediately preceding the date in question of a share of such stock on the Composite Tape, on the New York Stock Exchange-Listed Stocks, or, if such stock is not reported on the Composite Tape, on the New York Stock Exchange, or, if such stock is not listed on such Exchange, in the principal United States securities exchange registered under the Exchange act on which such stock is listed, or, if such stock is not listed on any such exchange, the highest closing bid quotation with respect to a share of such stock during the 30-day period preceding the date in question on the National Association of Security Dealers, Inc. Automated Quotations System or any similar interdealer quotation system then in use, or, if no such quotation is available, the fair market value on the date in question of a share of such stock as determined by a majority of the Continuing Directors in good faith; and (b) in the case of property other than cash or stock, the fair market value of such property on the date in question as determined by a majority of the Continuing Directors in good faith.

 

 

 

 

 4 

 

 

(6) "Interested Stockholder" shall mean any Person (other than the Corporation or any Subsidiary, any employee benefit plan maintained by the Corporation or any Subsidiary or any trustee or fiduciary with respect to any such plan when acting in such capacity) who or which:

 

(a) is or was at any time within the two-year period immediately prior to the date in question, the Beneficial Owner, directly or indirectly, of 10% or more of the voting power of the then outstanding Voting Stock of the Corporation; or

 

(b) is an Affiliate of the Corporation and at any time within the two-year period immediately prior to the date in question was the Beneficial Owner, directly or indirectly, of 10%, or more of the voting power of the outstanding Voting Stock of the Corporation; or

 

(c) is an assignee of, or has otherwise succeeded to, any share of Voting Stock of the Corporation of which an interested Stockholder was the Beneficial Owner, directly or indirectly, at any time within the two-year period immediately prior to the date in question, if such assignment or succession shall have occurred in the course of a transaction, or series of transactions, not involving a public offering within the meaning of the Securities Act of 1933, as amended.

 

For the purpose of determining whether a Person is an Interested Stockholder, the outstanding Voting Stock of the Corporation shall include unissued shares of Voting Stock of the Corporation of which the Interested Stockholder is the Beneficial Owner but shall not include any other shares of Voting Stock of the Corporation which may be issuable pursuant to any agreement, arrangement or understanding, or upon the exercise of any conversion rights, warrants or options, or otherwise, to any person who is not the Interested Stockholder.

 

(7) A "Person" means any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, as well as any syndicate or group deemed to be a person pursuant to Section 14(d)(2) of the Exchange Act.

 

(8) "Subsidiary" means any corporation of which the Corporation owns, directly or indirectly, (a) a majority of the outstanding shares of equity securities of such corporation, or (b) shares having a majority of the voting power represented by all of the outstanding Voting Stock of such corporation. For the purpose of determining whether a corporation is a Subsidiary, the outstanding Voting Stock and the shares of equity securities thereof shall include unissued shares of which the corporation is the Beneficial Owner, but, except for purposes of Paragraph 8.B (6), shall not include any other shares which may be issuable pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, warrants or options, or otherwise, to any Person who is not the Corporation.

 

(9) "Voting Stock" shall mean outstanding shares of capital stock of the relevant corporation entitled to vote generally in the election of directors.

 

C. The provisions of Paragraph 8.A shall not be applicable to any particular Business Combination Transaction, and such Business Combination Transaction shall require only such affirmative vote of the stockholders, if the condition specified in either of the following paragraphs (1) or (2) are met:

 

(1) The Business Combination Transaction shall have been approved by the affirmative vote of all of the Continuing Directors, even if the Continuing Directors do not constitute a quorum of the entire Board of Directors.

 

(2) All of the following conditions shall have been met:

 

(a) With respect to each share of each class of outstanding Voting Stock of the Corporation (including Common Stock), the holder thereof shall be entitled to receive on or before the date of the consummation of the Business Combination transaction (the "Consummation Date"), cash and consideration, in the form specified in Paragraph 8.C (2) (b) hereof: with an aggregate Fair Market Value as of the Consummation Date at least equal to the highest of the following:

 

(i) the highest per share price (including brokerage commissions, transfer taxes and soliciting dealers' fees) paid by the Interested Stockholder to which the Business Combination Transaction relate, or by any affiliate or Association of such Interested Stockholder, for any shares of such class of Voting Stock acquired by it (x) within the two-year period immediately prior to the first public announcement of the proposal of the Business Combination Transaction (the "Announcement Date") or (y) in the transaction in which it became an Interested Stockholder, whichever is higher;

 

 

 

 5 

 

 

(ii) the Fair Market Value per share of such class of Voting Stock of the Corporation on the Announcement Date; and

 

(iii) the highest preferential amount per share, if any, to which the holder of the shares of such class of Voting Stock of the Corporation are entitled in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation.

 

(b) The consideration to be received by a holder of a particular class of outstanding Voting Stock of the Corporation (including Common Stock) as described in Paragraph 8.C (2) (a) hereof shall be in cash or, if the consideration previously paid by or on behalf of the Interested Stockholder in connection with its acquisition of beneficial ownership of shares of such class of Voting Stock consisted, in whole or in part, of consideration other than cash, then in the same form as such consideration. If such payment for shares of any class of Voting Stock of the Corporation has been made in varying forms of consideration, the form of consideration for such class of Voting Stock shall be either cash or the form used to acquire the beneficial ownership of such class of Voting Stock previously acquired by the Interested Stockholder.

 

(c) After such Interested Stockholder has become an Interested Stockholder and prior to the Consummation Date: (i) there shall have been no failure to declare and pay at the regular date therefore any full dividends (whether or not cumulative) on the outstanding Preferred Stock of the Corporation, if any, except as approved by the affirmative vote of a majority of the Continuing Directors; (ii) there shall have been (x) no reduction in the annual rate of dividends paid on the Common Stock of the Corporation (except as necessary to reflect any subdivision of the Common Stock), except as approved by the affirmative vote of a majority of the Continuing Directors, and (y) an increase in such annual rate of dividends as necessary to reflect any reclassification (including any reverse stock split), recapitalization, reorganization or any similar transaction which has the effect of reducing the number of outstanding share of the Common Stock, unless the failure to so increase such annual rate is approved by the affirmative vote of a majority of the Continuing Directors, and (iii) such Interested Stockholder shall not have become the Beneficial Owner of any additional shares of Voting Stock of the Corporation except as part of the transaction which results in such Interested Stockholder becoming an Interested Stockholder.

 

(d) After such Interested Stockholder has become an Interested Stockholder, neither such Interested Stockholder nor any Affiliate or Associate thereof, shall have received the benefit, directly or indirectly except proportionately as shareholder of the Corporation), of any loans advances, guarantees, pledges or other financial assistance or any tax credits or other tax advantages provided by the Corporation.

 

(e) A proxy or information statement describing the proposed Business Combination Transaction and complying with the requirements of the Exchange Act and the General Rules and Regulations thereunder (or any subsequent provisions replacing such Act, Rules and Regulations) shall be mailed to the shareholder of the Corporation at least 30 days prior to the Consummation Date (whether or not such Proxy or information statement is required to be mailed pursuant to such Act or subsequent provisions thereof).

 

D. A majority of the Continuing Directors shall have the power and duty to determine, on the basis of information known to them after reasonable inquiry, all facts necessary to determine compliance with this Paragraph 8, including, without limitation, (1) whether a Person is an Interested Stockholder, (2) the number of shares of Voting Stock of the Corporation beneficially owned by any Person, (3) whether a Person is an Affiliate or Associate of another, (4) whether the requirements of Paragraph 8.C(2) have been met with respect to any Business Combination Transaction, and (5) whether the assets which are the subject of any Business Combination Transaction have, or the consideration to be received for the issuance or transfer of securities by the Corporation or any subsidiary in any Business Combination Transaction constitutes not less than 5% of the total assets of the Corporation as reported in the consolidated balance sheet of the Corporation as of the end of the most recent quarter with respect to which such balance sheet has been prepared. The good faith determination of the majority of the Continuing Directors on such matters shall be conclusive and binding for all the purposes of this Paragraph 8.

 

E. Nothing contained in this Paragraph shall be construed to relieve members of the Board of Directors or an Interested Stockholder from any fiduciary obligation imposed by law. The fact that any Business Combination Transaction comes with the provision of Paragraph 8.C shall not be construed to impose any fiduciary duty, obligation or responsibility on the Board of Directors or any member thereof, to approve such Business Combination Transaction or recommend its adoption or approval to the shareholders of the Corporation nor shall compliance limit, prohibit or otherwise restrict in any manner the Board of Directors, or any member thereof, with respect to evaluations of or actions and responses taken with respect to such Business Combination Transactions.

 

 

 

 6 

 

 

9. In the event that the Board of Directors should consist of in excess of one director the Board of Directors shall be divided into three classes as nearly equal in number as possible. The Initial terms of directors elected in 2018 shall expire as of the annual meeting of shareholders for the years indicated below:

 

Class I Directors 2019
Class II Directors 2020
Class ID Directors 2021

 

Upon expiration of the initial terms specified for each class of directors their successors shall be elected for a four-year term. If the number of directors is changed, any increase or decrease shall be apportioned among the classes, so as to maintain or attain if possible, the equality of the number of directors in each class, but in no case will decrease in the number of directors shorten the term of any incumbent director. If equality in number is not possible, the increase or decrease shall be apportioned among the classes in such way that the difference in the number of directors in any two classes shall not exceed one.

 

Any vacancies on the Board of Directors for any reason and any newly created directorships resulting by reason of any increase in the number of directors shall be filled by the Board of Directors, acting by a majority of the remaining directors the in office, although less than a quorum, and any director so chosen shall hold office until the next election of the class for which such directors have been chosen and until their successors are elected and qualified.

 

A written ballot shall not be required for the election of directors unless the bylaws of the Corporation shall so provide.

 

10. A quorum of the Board of Directors shall consist of a majority of the directors.

 

11. In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to do the following actions, but the following actions shall be taken only by a two-thirds majority vote of the Board of Directors:

 

(a) To adopt, amend or repeal the Bylaws of the Corporation by vote of a majority of the members of the Board of Directors, but any Bylaws adopted by the Board of Directors may be amended by the shareholders of the Corporation.

 

(b) To distribute to the shareholders of the Corporation out of capital surplus of the Corporation a portion of its assets, in cash or property, subject to the requirements of law, and such distribution is expressly permitted without the vote of the shareholders;

 

(c) To cause the Corporation to make purchases of its shares, directly or indirectly, to the extent of unreserved and unrestricted earned surplus available therefore, without the vote of the shareholders;

 

(d) If at any time the Corporation has more than one class of authorized or outstanding stock, to pay dividends on shares of any class to the holders of shares of any class, without the vote of the shareholders of the class in which the payment is to be made;

 

(f) To amend these articles of incorporation,

 

(g) To issue new stock or debt, including the issuance of treasury stock,

 

(h) To purchase, sell or transfer any substantial part of the Corporation's assets

 

(i) To merge or sell the Corporation or acquire another entity,

 

(j) To dissolve or liquidate the Corporation,

 

(k) To make a material change in the business of the Corporation,

 

(l) To make any substantial contact or incur any substantial debt or obligation of the Corporation,

 

(m) To file bankruptcy, enter into any insolvency proceeding or make any assignment for the benefit of creditors or compromise any debt, and

 

(n) To take any action which the Board of Directors is required or permitted to take without a meeting by written consent, setting forth the action so taken, signed by a majority of the directors entitled to vote thereon.

 

 

 

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12. In evaluating a Business Combination (as defined in Paragraph 8 above) or a tender or exchange offer and other acquisition proposal, the Board of Directors in determining what is in the best interest of the Corporation, may consider, among others, the following factors

 

(a) the financial aspects of the offer, the long-term interests of the Corporation's shareholders, the present and historical market value of the Corporation's shares and the premiums paid in other relevant transactions, the liquidation value of the Corporation's assets, the prospects of the Corporation, and (to the extent estimable) its stock on a going concern basis over the subsequent several years;

 

(b) the prospects for obtaining and methods of achieving a better offer, such as seeking other bids, pursuing negotiating strategies (which may include defensive tactics), and partial or total liquidation;

 

(c) the impact, if the offer is partial or two-tier, on the remaining shareholders and on the prospects of the Corporation in the event the offer is successful;

 

(d) the value and investment attributes of the non-cash consideration if the offer involves consideration other than cash;

 

(e) the potential of the offer (if partial or two-tier), including the offeror's competence, experience, integrity, management, reputation and financial condition;

 

(f) legal and regulatory matters, or other considerations that could impede or prevent the transaction's consummation;

 

(g) the effect of the transaction on the Corporation's (and its subsidiaries') customers, including policyholders, suppliers and employees; and

 

(h) local community interests.

 

13. The affirmative vote of the holders of at least 66% of the voting power of all of the shares of capital stock of the Corporation then entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend, alter, change or repeal, or adopt any provision or provisions inconsistent with Paragraph 8, 9, 12,or 13 hereof, unless such amendment, alteration, change repeal or adoption of any inconsistent provision or provisions is declared advisable by the Board of Directors by the affirmative vote of (A) all of the entire Board of Directors and (B) all of the Continuing Directors (as defined in Paragraph 8).

 

14. The Corporation shall indemnify any person (including his estate) made or threatened to be made a party to any suit or proceeding, whether civil or criminal, by reason of the fact that he was a director or officer of the Corporation or served at its request as a director or officer of another Corporation, against judgments, fines, amounts paid in settlement and reasonable expenses, including attorney fees actually and necessarily incurred as a result of such threat, suit or proceeding, or any appeal therein, to the full extent permitted by the General Corporation Law of Wyoming. Promptly after receipt by a party to be indemnified under this section of notice of the commencement of any such suit or proceeding, such party will, if a claim in respect thereof is to be made against the Corporation, notify the Corporation of the commencement thereof. This Corporation shall be entitled to participate at its own expense in the defense or to assume the defense of any such suit or proceedings, such defense shall be conducted by counsel chosen by it and reasonably satisfactory to the party to be indemnified and the party to be indemnified shall bear the fees and expenses of any additional counsel retained by him.

 

15. The mailing address of the corporation's principal office is:

 

Smart Decisions, Inc.

30 N Gould St.

Sheridan, WY 8280

 

 

This Amended and Restated Articles of Incorporation was adopted on the 27th day of February 2018 by Unanimous Resolutions of the Board of Directors of the Corporation and sufficient vote for approval by Shareholders of the Corporation, to be effective immediately.

 

The number of votes cast for the amendments by the shareholders was/were sufficient for approval.

 

 

Dated: February 27, 2018

 

Signature

 

/s/ Adam Green                    

Adam Green

Chairman of the Board of Directors

 

 

 

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EX1A-2B BYLAWS 4 smart_1a-ex0202.htm BYLAWS

Exhibit 2.2

 

 

 

 

 

 

 

 

 

 

SMART DECISION, INC.

 

 

 

 

_______

 

BY-LAWS

 

______

 

 

 

 

 

 

 

 

 

 

   

 

 

BY-LAWS

OF

SMART DECISION, INC.

 

______

 

 

ARTICLE I

OFFICES

 

The principal office of the corporation shall be designated time to time by the corporation and may be within or outside of Wyoming.

 

The corporation may have such other offices, either within or outside Wyoming, as the board of directors may designate or as the business of the corporation may require from time to time.

 

The registered office of the corporation required by the General Corporation Law of Wyoming to be maintained in Wyoming may be, but need not be, identical with the principal office, and the address of the registered office may be changed from time to time by the board of directors.

 

ARTICLE II

SHAREHOLDERS

 

Section 1. ANNUAL MEETING. The annual meeting of the shareholders shall be held on a date and at a time fixed by the board of directors of the corporation (or by the president in the absence of action by the board of directors), beginning with the year 2018, for the purpose of electing directors and for the transaction of such other business as may come before the meeting. If the election of directors is not held on the day fixed as provided herein for any annual meeting of the shareholders, or any adjournment thereof, the board of directors shall cause the election to be held at a special meeting of the shareholders as soon thereafter as it may conveniently be held.

 

A shareholder may apply to the district court in the county in Wyoming where the corporation's principal office is located or, if the corporation has no principal office in Wyoming, to the district court of the county in which the corporation's registered office is located to seek an order that a shareholder meeting be held (i) if an annual meeting was not held within six months after the close of the corporation’s most recently ended fiscal year or fifteen months after its last annual meeting, whichever is earlier, or (ii) if the shareholder participated in a proper call of or proper demand for a special meeting and notice of the special meeting was not given within thirty days after the date of the call or the date the last of the demands necessary to require calling of the meeting was received by the corporation pursuant to the General Corporation Law of Wyoming, or the special meeting was not held in accordance with the notice.

 

Section 2. SPECIAL MEETINGS. Unless otherwise prescribed by statute, special meetings of the shareholders may be called for any purpose by the president or by the board of directors. The president shall call a special meeting of the shareholders if the corporation receives one or more written demands for the meeting, stating the purpose or purposes for which it is to be held, signed and dated by holders of shares representing at least ten percent of all the votes entitled to be cast on any issue proposed to be considered at the meeting.

 

Section 3. PLACE OF MEETING. The board of directors may designate any place, either within or outside Wyoming, as the place for any annual meeting or any special meeting called by the board of directors. A waiver of notice signed by all shareholders entitled to vote at a meeting may designate any place, either within or outside Wyoming, as the place for such meeting. If no designation is made, or if a special meeting is called other than by the board, the place of meeting shall be the principal office of the corporation.

 

Section 4. NOTICE OF MEETING. Written notice stating the place, date, and hour of the meeting shall be given not less than ten nor more than sixty days before the date of the meeting, except if any other longer period is required by the General Corporation Law of Wyoming. The secretary shall be required to give such notice only to shareholders entitled to vote at the meeting except as otherwise required by the General Corporation Law of Wyoming.

 

 

 

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Notice of a special meeting shall include a description of the purpose or purposes of the meeting. Notice of an annual meeting need not include a description of the purpose or purposes of the meeting except the purpose or purposes shall be stated with respect to (i) an amendment to the articles of incorporation of the corporation, (ii) a merger or share exchange in which the corporation is a party and, with respect to a share exchange, in which the corporation's shares will be acquired, (iii) a sale, lease, exchange or other disposition (i other than in the usual and regular course of business, of all or substantially all of the property of the corporation or of another entity which this corporation controls, in each case with or without the goodwill, (iv) a dissolution of the corporation, (v) restatement of the articles of incorporation, or (vi) any other purpose for which a statement of purpose is required by the General Corporation Law of Wyoming. Notice shall be given personally or by mail, private carrier, electronically transmitted facsimile or other form of wire or wireless communication by or at the direction of the president, the secretary, or the officer or persons calling the meeting, to each shareholder of record entitled to vote at such meeting. If mailed and if in a comprehensible form, such notice shall be deemed to be given and effective when deposited in the United States mail, properly addressed to the shareholder at his address as it appears in the corporation's current record of shareholders, with first class postage prepaid. If notice is given other than by mail, and provided that such notice is in a comprehensible form, the notice is given and to be effective when sent.

 

If requested by the person or persons lawfully calling such meeting, the secretary shall give notice thereof at corporate expense. No notice need be sent to any shareholder if three successive, notices mailed to the last known address of such shareholder have been returned as undeliverable until such time as another address for such shareholder is made known to the corporation by such shareholder. In order to be entitled to receive notice of any meeting, a shareholder shall advise the corporation in writing of any change in such shareholder's mailing address as shown on the corporation's books and records.

 

When a meeting is adjourned to another date, time or place, notice need not be given of the new date, time or place if the new date, time or place of such meeting is announced before adjournment at the meeting at which the adjournment is taken. At the adjourned meeting the corporation may transact any business that may have been transacted at the original meeting. If the adjournment is for more than 120 days, or if a new record date is fixed for the adjourned meeting, a new notice of the adjourned meeting shall be given to each shareholder of record entitled to vote at the meeting as of the new record date.

 

A shareholder may waive notice of a meeting before or after the time and date of the meeting by a writing signed by such shareholder. Such waiver shall be delivered to the corporation for filing with the corporate records, but this delivery and filing shall not be conditions to the effectiveness of the waiver. Further, by attending a meeting either in person or by proxy, a shareholder waives objection to lack of notice or defective notice of the meeting unless the shareholder objects at the beginning of the meeting to the holding of the meeting or the transaction of business at the meeting because of lack of notice or defective notice. By attending the meeting, the shareholder also waives any objection to consideration at the meeting of a particular matter not within the purpose or purposes described in the meeting notice unless the shareholder objects to considering the matter when it is presented.

 

Section 5. FIXING OF RECORD DATE. For the purpose of determining shareholders entitled to (i) notice of or vote at any meeting of shareholders or any adjournment thereof, (ii) receive distributions or share dividends, (iii) demand a special meeting, or (iv) make a determination of shareholders for any other proper purpose, the board of directors may fix a future date as the record date for any such determination of shareholders, such date in any case to be not more than seventy days, and, in case of a meeting of shareholders, not less than ten days, prior to the date on which the particular action requiring such determination of shareholders is to be taken. If no record date is fixed by the directors, the record date shall be the day before the notice of the meeting is given to shareholders, or the date on which the resolution of the board of directors providing for a distribution is adopted, as the case may be. When a determination of shareholders entitled to vote at any meeting of shareholders is made as provided in this section, such determination shall apply to any adjournment thereof unless the board of directors fixes a new record date, which it must do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting. Unless otherwise specified when the record date is fixed, the time of day for such determination shall be as of the corporation's close of business on the record date.

 

 

 

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Notwithstanding the above, the record date for determining the shareholders entitled to take action without a meeting or entitled to be given notice of action so taken shall be the date a writing upon which the action is taken is first received by the corporation. The record date for determining shareholders entitled to demand a special meeting shall be the date of the earliest of any of the demands pursuant to which the meeting is called.

 

Section 6. VOTING LISTS. After a record date is fixed for a shareholders' meeting, the secretary shall make, at the earlier often days before such meeting or two business days after notice of the meeting has been given, a complete list of the shareholders entitled to be given notice of such meeting or any adjournment thereof. The list shall be arranged by voting groups and within each voting group by class or series of shares, shall be in alphabetical order within each class or series, and shall show the address of and the number of shares of each class or series held by each shareholder. For the period beginning the earlier of ten days prior to the meeting or two business days after notice of the meeting is given and continuing through the meeting and any adjournment thereof, this list shall be kept on file at the principal office of the corporation, or at a place (which shall be identified in the notice) in the city where the meeting will be held. Such list shall be available for inspection on written demand by any shareholder (including for the purpose of this Section 6 any holder of voting trust certificates) or his agent or attorney during regular business hours and during the period available for inspection. The original share transfer books shall be prima facie evidence as to who are the shareholders entitled to examine such list or transfer books or to vote at any meeting of shareholders.

 

Any shareholder, his agent or attorney may copy the list during 'regular business hours and during the period it is available for inspection, provided (i) the shareholder has been a shareholder for at least three months immediately preceding the demand or holds at least five percent of all outstanding shares of any class of shares as of the date of the demand, (ii) the demand is made in good faith and for a purpose reasonably related to the demanding shareholder's interest as a shareholder, (iii) the shareholder describes with reasonable particularity the purpose and the records the shareholder desires to inspect, (iv) the records are directly connected with the described purpose, and (v) the shareholder pays a reasonable charge covering the costs of labor and material for such copies, not to exceed the estimated cost of production and reproduction.

 

Section 7. RECOGNITION PROCEDURE FOR BENEFICIAL OWNERS~ The board of directors may adopt by resolution a procedure whereby a shareholder of the corporation may certify in writing to the corporation that all or a portion of the shares registered in the name of such shareholder are held for the account of a specified person or persons. The resolution may set forth (i) the types of nominees to which it applies, (ii) the rights or privileges that the corporation will recognize in a beneficial owner, which may include rights and privileges other than voting, (iii) the form of certification and the information to be contained therein, (iv) if the certification is with respect to a record date, the time within which the certification must be received by the corporation, (v) the period for which the nominee's use of the procedure is effective, and (vi) such other provisions with respect to the procedure as the board deems necessary or desirable. Upon receipt by the corporation of a certificate complying with the procedure established by the board of directors, the persons specified in the certification shall be deemed, for the purpose or purposes set forth in the certification, to be the registered holders of the number of shares specified in place of the shareholder making the certification.

 

Section 8. QUORUM AND MANNER OF ACTING. A majority of the votes entitled to be cast on a matter by a voting group represented in person or by proxy, shall constitute a quorum of that voting group for action on the matter. If less than a majority of such votes are represented at a meeting, a majority of the votes so represented may adjourn the meeting from time to time without further notice, for a period not to exceed 120 days for anyone adjournment. If a quorum is present at such adjourned meeting, any business may be transacted which might have been transacted at the meeting as originally noticed. The shareholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum, unless the meeting is adjourned and a new record date is set for the adjourned meeting.

 

 

 

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If a quorum exists, action on a matter other than the election of directors by a voting group is approved if the votes cast within the voting group favoring the action exceed the votes cast within the voting group opposing the action, unless the vote of a greater number or voting by classes is required by law or the articles of incorporation.

 

Section 9. PROXIES. At all meetings of shareholders, a shareholder may vote by proxy by signing an appointment form or similar writing, either personally or by his duly authorized attorney-in-fact. A shareholder may also appoint a proxy by transmitting or authorizing the transmission of a facsimile or other electronic transmission providing a written statement of the appointment to the proxy, a proxy solicitor, proxy support service organization, or other person duly authorized by the proxy to receive appointments as agent for the proxy, or to the corporation. The transmitted appointment shall set forth or be transmitted with written evidence from which it can be determined that the shareholder transmitted or authorized transmission of the appointment. The proxy appointment for similar writing shall be filed with the secretary of the corporation before or at the time of the meeting. The appointment of a proxy effective when received by the corporation and is valid for eleven (11) months unless a different period is expressly provided in the appointment form or similar writing.

 

Any complete copy, including an electronically transmitted facsimile, of an appointment of a proxy may be substituted for or used/in. lieu of the original appointment for any purpose for which the original appointment could be used.

 

Revocation of a proxy does not affect the right of the corporation to accept the proxy's authority unless (i) the corporation had notice that the appointment was coupled with an interest and notice that such interest is extinguished is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises his authority under the appointment, or (ii) other notice of the revocation of the appointment is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises his authority under the appointment. Other notice of revocation may in, the discretion of the corporation, be deemed to include the appearance at a shareholders' meeting of the shareholder who granted the proxy and his voting in person on any matter subject to a vote at such meeting.

 

The death or incapacity of the shareholder appointing a proxy does not affect the right of the corporation to accept the proxy's authority unless notice of the death or incapacity is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises his authority under the appointment.

 

The corporation shall not be required to recognize an appointment made irrevocable if it has received a writing revoking the appointment signed by the shareholder Including a shareholder who is a successor to the shareholder who granted the proxy) either personally or by his attorney-in-fact, notwithstanding that the revocation may be a breach of an obligation of the shareholder to another person not to revoke the appointment.

 

Subject to Section 11 and any express limitation on the proxy's authority appearing on the appointment form, the corporation is entitled to accept the proxy's vote or other action as that of the shareholder making the appointment.

 

Section 10. VOTING OF SHARES. Each outstanding share, regardless of class, shall be entitled to one vote, except in the election of directors, and each fractional share shall be entitled to a corresponding fractional vote on each matter submitted to a vote at a meeting of shareholders, except to the extent that the voting rights of the shares of any class or classes are limited or denied by the articles of incorporation as permitted by the General Corporation Law of Wyoming. Cumulative voting shall not be permitted in the election of directors or for any other purpose. Each record holder of shares shall be entitled to vote in the election of directors and shall have as many votes for each of the shares owned by him as there are directors to be elected and for whose election he has the right to vote.

 

At each election of directors, that number of candidates equaling the number of directors to be elected, having the highest number of votes cast in favor of their election, shall be elected to the board of directors.

 

Except as otherwise ordered by a court of competent jurisdiction upon a finding that the purpose of this Section would not be violated in the circumstances presented to the court, the shares of the corporation are not entitled to be voted if they are owned, directly or indirectly, by a second corporation, domestic or foreign, and the first corporation owns, directly or indirectly, a majority of the shares entitled to vote for directors of the second corporation except to the extent the second corporation holds the shares in a fiduciary capacity.

 

 

 

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Redeemable shares are not entitled to be voted after notice of redemption is mailed to the holders and a sum sufficient to redeem the shares has been deposited with a bank, trust company or other financial institution under an irrevocable obligation to pay the holders the redemption price on surrender of the shares.

 

Section 11. CORPORATION’S ACCEPTANCE OF VOTES. If the name signed on a vote, consent, waiver, proxy appointment, or proxy appointment revocation corresponds to the name of a shareholder, the corporation, if acting in good faith, is entitled to accept the vote, consent, waiver, proxy appointment or proxy appointment revocation and give it effect as the act of the shareholder. If the name signed on a vote, consent, waiver, proxy appointment or proxy appointment revocation does not correspond to the name of a shareholder, the corporation, if acting in good faith, is nevertheless entitled to accept the vote, consent, waiver, proxy appointment or proxy appointment revocation and to give it effect as the act shareholder if:

 

(i) the shareholder is an entity and the name signed purports to be that of an officer or agent of the entity;

 

(ii) the name signed purports to be that of an administrator, executor, guardian or conservator representing the shareholder and; if the corporation requests, evidence of fiduciary status acceptable to the corporation has been presented with respect to the vote, consent, waiver, proxy appointment or proxy appointment revocation;

 

(iii) the name signed purports to be that of a receiver or trustee ill bankruptcy of the shareholder and, if the corporation requests, evidence of this status acceptable to the corporation has been presented with respect to the vote, consent, waiver, proxy appointment or proxy appointment revocation;

 

(iv) the name signed purports to be that of a pledgee, beneficial owner or attorney-in-fact of the shareholder and, if the corporation requests, evidence acceptable to the corporation of the signatory's authority to sign for the shareholder has been presented with respect to the vote, consent, waiver, proxy appointment or proxy' appointment revocation;

 

(v) two or more persons are the shareholder as co-tenants or fiduciaries and the name signed purports to be the name of at least one of the co-tenants or fiduciaries, and the person signing appears to be acting on behalf of all the co-tenants or fiduciaries; or

 

(vi) the acceptance of the vote, consent, waiver, proxy appointment or proxy appointment revocation is otherwise proper under rules established by the corporation that are not inconsistent with this Section 11.

 

The corporation is entitled to reject a vote, consent, waiver, proxy appointment or proxy appointment revocation if the secretary or other officer or agent authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory's authority to sign for the shareholder.

 

Neither the corporation nor its officers nor any agent who accepts or rejects a vote, consent, waiver, proxy appointment or proxy appointment revocation in good faith and in accordance with the standards of this Section is liable in damages for the consequences of the acceptance or rejection.

 

Section 12. INFORMAL ACTION BY SHAREHOLDERS. Any action required or permitted to be taken at a meeting of the shareholders may be taken without a meeting if a written consent (or counterparts thereof) that sets forth the action so taken is signed by shareholders holding at least that proportion of the voting power necessary to approve such action and received by the corporation. Such consent shall have the same force and effect as a vote of the shareholders and may be stated as such in any document. Action taken under this Section 12 is effective as of the date the last writing necessary to effect the action is received by the corporation, unless an of the writings specify a different effective date, in which case such specified date shall be the effective date for such action. The record date for determining shareholders entitled to take action without a meeting is the date the corporation first receives a writing upon which the action is taken.

 

 

 

 

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Any shareholder who has signed a writing describing and consenting to action taken pursuant to this Section 12 may revoke such consent by a writing signed by the shareholder describing the action and stating that the shareholder's prior consent thereto is revoked, if such writing is received by the corporation before the effectiveness of the action.

 

Section 13. MEETINGS BY TELECOMMUNICATION. Any or all of the shareholders may participate in an annual or special shareholders' meeting by, or the meeting may be conducted through the use of, any means of communication by which all persons participating in the meeting may hear each other during the meeting. A shareholder participating in a meeting by this means is deemed to be present in person at the meeting.

 

Section 14. REPRESENTATIVE CLAIMS. Except where a private right of action at a lower threshold than that required by this By-Law is expressly authorized by applicable statute, a current or prior shareholder or group of shareholders (collectively, a “Claiming Party”) may not initiate a claim in a court of law on behalf of (1) the Corporation and/or (2) any class of current and/or prior shareholders against the Corporation and/or against any director and/or officer of the Corporation in his or her official capacity, unless the Claiming Party, no later than the date the claim is asserted, delivers to the Secretary written consents by beneficial shareholders owning at least Three Percent (3%) of the outstanding shares of the Corporation as of (i) the date the claim was discovered (or should have been discovered) by the Claiming Party or (ii), if on behalf of a class consisting only of prior shareholders, the last date on which a shareholder must have held shares to be included in the class.

 

Section 15. FORUM FOR ADJUDICATION OF DISPUTES. Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the General Corporation Law or the Certificate of Incorporation or By-Laws (as either may be amended from time to time), or (iv) any action asserting a claim governed by the internal affairs doctrine shall be the court of appropriate jurisdiction under the law of the Corporation's State of corporate domicile (or, if this court does not have jurisdiction, the federal district court for the District of the Corporation's State of corporate domicile). If any action the subject matter of which is within the scope of the preceding sentence is filed in a court other than such court (a “Foreign Action”) in the name of any stockholder, such stockholder shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of the Corporation's domicile in connection with any action brought in any such court to enforce the preceding sentence and (ii) having service of process made upon such stockholder in any such action by service upon such stockholder’s counsel in the Foreign Action as agent for such stockholder.

 

If any action the subject matter of which is within the scope of the preceding sentence is filed in a court other than a court located within the State of the Corporation's domicile e (a “Foreign Action”) in the name of any stockholder, such stockholder shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of the Corporation's domicile in connection with any action brought in any such court to enforce the preceding sentence and (ii) having service of process made upon such stockholder in any such action by service upon such stockholder’s counsel in the Foreign Action as agent for such stockholder.

 

Section 16. ARBITRATION. Any disagreement, dispute, controversy or claim arising out of or relating to this Agreement or the interpretation of this Agreement or any arrangements relating to this Agreement or contemplated in this Agreement or the breach, termination or invalidity thereof shall be settled by final and binding arbitration administered by the America Arbitration Association in Boca Raton, Florida in accordance with the then existing American Arbitration Association Rules and Procedures. In the event of such an arbitration proceeding, the Claiming Party and the Company shall select a mutually acceptable neutral arbitrator from among the American Arbitration Association panel of arbitrators. In the event the Claiming Party and the Company cannot agree on an arbitrator, the Administrator of American Arbitration Association will appoint an arbitrator. Neither the Claiming Party nor the Company nor the arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all parties. Except as provided herein, the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings. The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the State of Florida, or federal law, or both, as applicable, and the arbitrator is without jurisdiction to apply any different substantive law. The arbitrator shall have the authority to entertain a motion to dismiss and/or a motion for summary judgment by any party and shall apply the standards governing such motions under the Federal Rules of Civil Procedure. The arbitrator shall render an award and a written, reasoned opinion in support thereof. Judgment upon the award may be entered in any court having jurisdiction thereof.

 

 

 

 

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Section 17. LITIGATION COSTS. To the fullest extent permitted by law, in the event that (i) any current or prior stockholder or anyone on their behalf (“Claiming Party”) initiates or asserts any claim or counterclaim (“Claim”) or joins, offers substantial assistance to, or has a direct financial interest in any Claim against the Corporation and/or any Director, Officer, Employee or Affiliate, and (ii) the Claiming Party (or the third party that received substantial assistance from the Claiming Party or in whose Claim the Claiming Party had a direct financial interest) does not obtain a judgment on the merits that substantially achieves, in substance and amount, the full remedy sought, then each Claiming Party shall be obligated jointly and severally to reimburse the Corporation and any such Director, Officer, Employee or Affiliate, the greatest amount permitted by law of all fees, costs and expenses of every kind and description (including but not limited to, all reasonable attorney’s fees and other litigation expenses) (collectively, “Litigation Costs”) that the parties may incur in connection with such Claim.

 

To the fullest extent permitted by law, in the event that any Claiming Party initiates or asserts any Claim or joins, offers substantial assistance to, or has a direct financial interest in any Claim against any Corporation Parties, then, regardless whether the Claiming Party is successful on its Claim in whole or in part, (i) the Claiming Party shall bear its own Litigation Costs, and (ii) the Claiming Party and the Claiming Party’s attorneys shall not be entitled to recover any Litigation Costs or, in a derivative or class action, to receive any fees or expenses as the result of the creation of any common fund, or from a corporate benefit purportedly conferred upon the Corporation.”

 

Section 18. SEVERABILITY.  If any provision (or any part thereof) of these By-Laws shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of these By-Laws (including, without limitation, each portion of any section of these By-Laws containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (ii) to the fullest extent possible, the provisions of these By-Laws (including, without limitation, each such portion containing any such provision held to be invalid, illegal or unenforceable) shall be construed for the benefit of the Corporation to the fullest extent permitted by law so as to (a) give effect to the intent manifested by the provision held invalid, illegal or unenforceable, and (b) permit the Corporation to protect its directors, officers, employees and agents from personal liability in respect of their good faith service. Reference herein to laws, regulations or agencies shall be deemed to include all amendments thereof, substitutions therefor and successors thereto, as the case may be.

 

ARTICLE III

BOARD OF DIRECTORS

 

Section 1. GENERAL POWERS. All corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation shall be managed under the direction of, its board of directors, except as otherwise provided in the General Corporation Law of Wyoming or the articles of incorporation.

 

Section 2. NUMBER, QUALIFICATIONS AND TENURE. The number of directors of the corporation maybe fixed from time to time by the board of directors, within a range of no less than one or more than fifteen, but no decrease in the number of directors shall have the effect of shortening the term of any incumbent director. A director shall be a natural person who is eighteen years of age or older. A director need not be a resident of Wyoming or a shareholder of the corporation.

 

Directors shall be elected at each annual meeting of shareholders.

 

Each director shall hold office until the next annual meeting of shareholders following his election and thereafter until his successor shall have been elected and qualified. Directors shall be removed in the manner provided by the General Corporation Law of Wyoming. Any director may be removed by the shareholders of the voting group that elected the director, with cause, at a meeting called for that purpose. The notice of the meeting shall state that the purpose or one of the purposes of the meeting is removal of the director. A director may be removed only if the number of votes cast in favor of removal exceeds the number of votes cast against removal.

 

Section 3. VACANCIES. Any director may resign at any time by giving written notice to the secretary. Such resignation shall take effect at the time the notice is received by the secretary unless the notice specifies a later effective date. Unless otherwise specified in the notice of resignation, the corporation's acceptance of such resignation shall not be necessary to make it effective. Any vacancy on the board of directors may be filled by the affirmative vote of a majority of the shareholders at a special meeting called for that purpose or by the board of directors. If the directors remaining in office constitute fewer than a quorum of the board, the directors may fill the vacancy by the affirmative vote of a majority of all the directors remaining in office. If elected by the directors, the director shall hold office until the next annual shareholders' meeting at which directors are elected. If elected by the shareholders, the director shall hold office for the unexpired term of his predecessor in office; except that, if the director's predecessor was elected by the directors to fill a vacancy, the director elected by the shareholders shall hold office for the unexpired term of the last predecessor elected by the shareholders.

 

 

 

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Section 4. REGULAR MEETINGS. A regular meeting of the board of directors shall be held without notice immediately after and at the same place as the annual meeting of shareholders. The board of directors may provide by resolution the time and place, either within or outside Wyoming, for the holding of additional regular meetings without other notice.

 

Section 5. SPECIAL MEETINGS. Special meetings of the board of directors may be called by or at the request of the president or any one of the directors. The person or persons authorized to call special meetings of the board of directors may fix any place, either within or outside Wyoming, as the place for holding any special meeting of the board of directors called by them.

 

Section 6. NOTICE. Notice of the date, time and place of any special meeting shall be given to each director at least two days prior to the meeting by written notice either personally delivered or mailed to each director at his business address, or by notice transmitted by private courier, electronically transmitted facsimile or other form of wire or wireless communication. If mailed, such notice shall be deemed to be given and to be effective when deposited in the United States mail, properly addressed, with first class postage prepaid. If notice is given by electronically transmitted facsimile or other similar form of wire or wireless communication, such notice shall be deemed to be given and to be effective when sent. If a director has designated in writing one or more reasonable addresses or facsimile numbers for delivery of notice to him, notice sent by mail, electronically transmitted facsimile or other form of wire or wireless communication shall not be deemed to have been given or to be effective unless sent to such addresses or facsimile numbers, as the case may be.

 

A director may waive notice of a meeting before or after the time and date of the meeting by a writing signed by such director. Such waiver shall be delivered to the secretary for filing with the corporate records, but such delivery and filing shall not be conditions to the effectiveness of the waiver. Further, a director's attendance at or participation in a meeting waives any required notice to him of the meeting unless at the beginning of the meeting, or promptly upon his later arrival, the director objects to holding the meeting or transacting business at the meeting because of lack of notice or defective notice and does not thereafter vote for or assent to action taken at the meeting. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the board of directors need be specified in the notice or waiver of notice of such meeting.

 

Section 7. QUORUM. A majority of the number of directors fixed by the board of directors pursuant to Article III, Section 2 or, if no number is fixed, a majority of the number in office immediately before the meeting begins, shall constitute a quorum for the transaction of business at any meeting of the board of directors.

 

Section 8. MANNER OF ACTING. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors.

 

Section 9. COMPENSATION. By resolution of the board of directors, any director may be paid anyone or more of the following: his expenses, if any, of attendance at meetings, a fixed sum for attendance at each meeting, a stated salary as director, or such other compensation as the corporation and the director may reasonably agree upon. No such payment shall preclude any director from serving the corporation in any other capacity and receiving compensation therefor.

 

Section 10. PRESUMPTION OF ASSENT. A director of the corporation who is present at a meeting of the board of directors or committee of the board at which action on any corporate matter taken shall be presumed to have assented to all action taken at the meeting unless (i) the director objects at the beginning of the meeting, or promptly upon his arrival, to the holding of the meeting or the transaction of business at the meeting and does not thereafter vote for or assent to any action taken at the meeting, (ii) the director contemporaneously requests that his dissent or abstention as to any specific action taken be entered in the minutes of the meeting, (iii) the director causes written notice of his dissent or abstention as to any specific action to be received by the presiding officer of the meeting before its adjournment or by the secretary promptly after the adjournment of the meeting. A director may dissent to a specific action at a meeting, while assenting to others. The right to dissent to a specific action taken at a meeting of the board of directors or a committee of the board shall not be available to a director who voted in favor of such action.

 

Section 11. COMMITTEES. By resolution adopted by a majority of all the directors in office when the action is taken, the board of directors may designate from among its members an executive committee and one or more other committees, and appoint one or more members of the board of directors to serve on them. To the extent provided in the resolution.

 

 

 

 

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Sections 4, 5, 6, 7, 8 or 12 of Article III, which govern meetings, notice, waiver of notice, quorum, voting requirements and action without a meeting of the board of directors, shall apply to committees and their members appointed under this Section 11.

 

Neither the designation of any such committee, the delegation of authority to such committee, nor any action by such committee pursuant to its authority shall alone constitute compliance by any member of the board of directors or a member of the committee in question with his responsibility to conform to the standard of care set forth in Article III, Section 14 of these bylaws.

 

Section 12. INFORMAL ACTION BY DIRECTORS. Any action required or permitted to be taken at a meeting of the directors or any committee designated by the board of directors may be taken without a meeting if a written consent (or counterparts thereof) that sets forth the action so taken is signed by all of the directors entitled to vote with respect to the action taken. Such consent shall have the same force and effect as a unanimous vote of the directors or committee members and may be stated as such in any document. Unless the consent specifies a different effective time or date, action taken under this Section 12 is effective at the time or date the last director signs a writing describing the action taken, unless, before such time, any director has revoked his consent by a writing signed by the director and received by the president or the secretary of the corporation.

 

Section 13. TELEPHONIC MEETINGS. The board of directors may permit any director (or any member of a committee designated by the board) to participate in a regular or special meeting of the board of directors or a committee thereof through the use of any means of communication by which all directors participating in the meeting can hear each other during the meeting. A director participating in a meeting in this manner is deemed to be present in person at the meeting.

 

Section 14. STANDARD OF CARE. A director shall perform his duties as a director, including without limitation his duties as a member of any committee of the board, in good faith, in a manner he reasonably believes to be in the best interests of the corporation, and with the care an ordinarily prudent person in a like position would exercise under similar circumstances. In performing his duties, a director shall be entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, in each case prepared or presented by the persons herein designated. However, he shall not be considered to be acting in good faith if he has knowledge concerning the matter in question that would cause such reliance to be unwarranted. A director shall not be liable to the corporation or its shareholders for any action he takes or omits to take as a director if, in connection with such action or omission, he performs his duties in compliance with this Section 14.

 

The designated persons on whom a director is entitled to rely are (i) one or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented, (ii) legal counsel, public accountant, or other person as to matters which the director reasonably believes to be within such person's professional or expert competence, or (iii) a committee designated by the board of directors may be taken without a meeting if a written consent (or counterparts thereof) that sets forth the action so taken is signed by all of the directors entitled to vote with respect to the action taken. Such consent shall have the same force and effect as a unanimous vote of the directors or committee members and may be stated as such in any document. Unless the consent specifies a different effective time or date, action taken under this Section 12 is effective at the time or date the last director signs a writing describing the action taken, unless, before such time, any director has revoked his consent by a writing signed by the director and received by the president or the secretary of the corporation.

 

The designated persons on whom a director is entitled to rely are (i) one or more officers or employees of the corporation whom the director reasonably believes to be reliable and competent in the matters presented, (ii) legal counsel, public accountant, or other person as to matters which the director reasonably believes to be within such person's professional or expert competence, or (iii) a committee of the board of directors on which the director desires to serve if the director reasonably believes the committee merits confidence.

 

ARTICLE IV

OFFICERS AND AGENTS

 

Section 1. GENERAL. The officers of the corporation chief executive officer and/or president, a secretary and a treasurer and may also include one or more vice presidents, each officer shall be appointed by the board of directors and natural person eighteen years of age or older. One person more than one office. The board of directors or an officer or authorized by the board may appoint such other officers, officers, committees and agents, including a chairman of assistant secretaries and assistant treasurers, as they may consider necessary. Except as expressly prescribed by these bylaws, of directors or the officer or officers authorized by the board from time to time determine the procedure for the officers, their authority and duties and their compensation, that the board of directors may change the authority, duties compensation of any officer who is not appointed by the board.

 

 

 

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Section 2. APPOINTMENT AND TERM OF OFFICE. The officers of the corporation to be appointed by the board of directors shall be appointed at each annual meeting of the board held after each annual meeting of the shareholders. If the appointment of officers is not made at such meeting or if an officer or officers are to be appointed by another officer or officers of the corporation, such appointments shall be made as determined by the board of directors or the appointing person or persons. Each officer shall hold office until the first of the following occurs: his successor shall have been duly appointed and qualified, his death, his resignation, or his removal in the manner provided in Section 3.

 

Section 3. RESIGNATION AND REMOVAL. An officer may resign at any time by giving written notice of resignation to the president, secretary or other person who appoints such officer. The resignation is effective when the notice is received by the corporation unless the notice specifies a later effective date.

 

Any officer or agent may be removed at any time with or without cause by the board of directors or an officer or officers authorized by the board. Such removal does not affect the contract rights, if any, of the corporation or of the person so removed. The appointment of an officer or agent shall not in itself create contract rights.

 

Section 4. VACANCIES. A vacancy in any office, however occurring, may be filled by the board of directors, or by the officer or officers authorized by the board, for the unexpired portion of the officer's term. If an officer resigns and his resignation is made effective at a later date, the board of directors, or officer or officers authorized by the board, may permit the officer to remain in office until the effective date and may fill the pending vacancy before the effective date if the board of directors or officer or officers authorized by the board provide that the successor shall not take office until the effective date. In the alternative, the board of directors, or officer or officers authorized by the board of directors, may remove the officer at any time before the effective date and may fill the resulting vacancy.

 

Section 5. PRESIDENT. The president shall preside at all meetings of shareholders and all meetings of the board of directors unless the board of directors has appointed a chairman, vice chairman, or other officer of the board and has authorized such person to preside at meetings of the board of directors. Subject to the direction and supervision of the board of directors, the president shall be the chief executive officer of the corporation, and shall have general and active control of its affairs and business and general supervision of its officers, agents and employees. Unless otherwise directed by the board of directors, the president shall attend in person or by substitute appointed by him, or shall execute on behalf of the corporation written instruments appointing a proxy or proxies to represent the corporation, at all meetings of the shareholders of any other corporation in which the corporation holds any shares. On behalf of the corporation, the president may in person or by substitute or by proxy execute written waivers of notice and consents with respect to any such meetings. At all such meetings and otherwise, the president, in person or by substitute or proxy, may vote the shares held by the corporation, execute written consents and other instruments with respect to such shares, and exercise any and all rights and powers incident to the ownership of said shares, subject to the instructions, if any, of the board of directors. The president shall have custody of the treasurer's bond, if any. The president shall have such additional authority and duties as are appropriate and customary for the office of president and chief executive officer, except as the same may be expanded or limited by the board of directors from time to time.

 

Section 6. VICE PRESIDENTS. The vice presidents shall assist the president and shall perform such duties as may be assigned to them by the president or by the board of directors. In the absence of the president, the vice president, if any (or, if more than one, the vice presidents in the order designated by the board of directors, or if the board makes no such designation, then the vice president designated by the president, or if neither the board nor the president makes any such designation, the senior vice president as determined by first election to that office), shall have the powers and perform the duties of the president.

 

 

 

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Section 7. SECRETARY. The secretary shall (i) prepare and maintain as permanent records the minutes of the proceedings of the shareholders and the board of directors, a record of all actions taken by the shareholders or board of directors without a meeting, a record of all actions taken by a committee of the board of directors in place of the board of directors on behalf of the corporation, and a record of all waivers of notice of meetings of shareholders and of the board of directors or any committee thereof, (ii) see that all notices are duly given in accordance with the provisions of these bylaws and as required by law, (iii) serve as custodian of the corporate records and of the seal of the corporation and affix the seal to all documents when authorized by the board of directors, (iv) keep at the corporation's registered office or principal place of business a record containing the names and addresses of all shareholders in a form that permits preparation of a list of shareholders arranged by voting group and by class or series of shares within each voting group, that is alphabetical within each class or series and that shows the address of, and the number of shares of each class or series held by, each shareholder, unless such a record shall be kept at the office of the corporation's transfer agent or registrar, (v) maintain at the corporation's principal office the originals or copies of the corporation's articles Of incorporation, bylaws, minutes of all shareholders' meetings and records of all action taken by shareholders without a meeting for the past three years, all written communications within the past three years to shareholders as a group or to the holders of any class or series of shares as a group, a list of the names and business addresses of the current directors and officers, a copy of the corporation’s most recent corporate report filed with the Secretary of State, and financial statements showing in reasonable detail the corporation’s assets and liabilities and results of operations for the last three years, (vi) have general charge of the stock transfer books of the corporation, unless the corporation has a transfer agent, (vii) authenticate records of the corporation, and (viii) in general, perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to him by the president or by the board of directors. Assistant secretaries, if any, shall have the same duties and powers, subject to supervision by the secretary. The directors and/or shareholders may however respectively designate a person other than the secretary or assistant secretary to keep the minutes of their respective meetings.

 

Any books, records, or minutes of the corporation may be in written form or in any form capable of being converted into written form within a reasonable time:

 

Section 8. TREASURER. The treasurer shall be the principal financial officer of the corporation, shall have the care and custody of all funds, securities, evidences of indebtedness and other personal property of the corporation and shall deposit the same in accordance with the instructions of the board of directors. Subject to the limits imposed by the board of directors, he shall receive and give receipts and acquaintances for money paid in on account of the corporation, and shall payout of the corporation's funds on hand all bills, payrolls and other just debts of the corporation of whatever nature upon maturity. He shall perform all other duties incident to the office of the treasurer and, upon request of the board, shall make such reports to it as may be required at any time. He shall, if required by the board, give the corporation a bond in such sums and with such 'sureties as shall be satisfactory to the board, conditioned upon the faithful performance of his duties and for the restoration to the corporation of all books, papers, vouchers, money and other property of whatever kind in his possession or under his control belonging to the corporation. He shall have such other powers and perform such other duties as may from time to time be prescribed by the board of directors or the president. The assistant treasurers, if any, shall have the same powers and duties, subject to the supervision of the treasurer.

 

The treasurer shall also be the principal accounting officer of the corporation. He shall prescribe and maintain the methods and systems of accounting to be followed, keep complete books and records of account as required by the General Corporation Law of Wyoming, prepare and file all local, state and federal tax: returns, prescribe and maintain an adequate system of internal audit and prepare and furnish to the president and the board of directors statements of account showing the financial position of the corporation and the results of its operations.

 

ARTICLE V

SHARES

 

Section 1. CERTIFICATES. The board of directors shall be authorized to issue any of its classes of shares with or without certificates. The fact that the shares are not represented by certificates shall have no effect on the rights and obligations of shareholders. If the shares are represented by certificates, such shares shall be represented by consecutively numbered certificates signed, either manually or by facsimile, in the name of the corporation by the president. In case any officer who has signed or whose facsimile signature has been placed upon such certificate shall have ceased to be such officer before such certificate is issued, such certificate may nonetheless be issued by the corporation with the same effect as if he were such officer at the date of its issue. All certificates shall be consecutively numbered, and the names of the owners, the number of shares, and the date of issue shall be entered on the books of the corporation. Each certificate representing shares shall state upon its face:

 

(i) That the corporation is organized under the laws of Wyoming;

 

(ii) The name of the person to whom issued;

 

 

 

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(iii) The number and class of the shares and the designation of the series, if any, that the certificate represents;

 

(iv) The par value, if any, of each share represented by the certificate;

 

(v) Any restrictions imposed by the corporation upon the transfer of the shares represented by the certificate.

 

If shares are not represented by certificates, within a reasonable time following the issue or transfer of such shares, the corporation shall send the shareholder a complete written statement of all of the information required to be provided to holders of uncertificated shares by the General Corporation Law of Wyoming.

 

Section 2. CONSIDERATION FOR SHARES. Certificated or uncertificated shares shall not be issued until the shares represented thereby are fully paid. The board of directors may authorize the issuance of shares for consideration consisting of any tangible or intangible property or benefit to the corporation, including cash, promissory notes, services performed or other securities of the corporation. Future services shall not constitute payment or partial payment for shares of the corporation. The promissory note of a subscriber or an affiliate of a subscriber shall not constitute payment or partial payment for shares of the corporation unless the note is negotiable and is secured by collateral, other than the shares being purchased, having a fair market value at least equal to the principal amount of the note. For purposes of this Section 2, "promissory note" means a negotiable instrument on which there is an obligation to pay independent of collateral and does not include a non-recourse note.

 

Section 3. LOST CERTIFICATES. In case of the alleged loss, destruction or mutilation of a certificate of stock, the board of directors may direct the issuance of a new certificate in lieu thereof upon such terms and conditions in conformity with law as the board may prescribe. The board of directors may in its discretion require an affidavit of lost certificate and/or a bond in such form and amount and with such surety as it may determine before issuing a new certificate.

 

Section 4. TRANSFER OF SHARES. Upon surrender to the corporation or to a transfer agent of the corporation of a certificate of stock duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, and receipt of such documentary stamps as may be required by law and evidence of compliance with all applicable securities laws and other restrictions, the corporation shall issue a new certificate to the person entitled thereto, and cancel the old certificate. Every such transfer of stock shall be entered on the stock books of the corporation that shall be kept at its principal office or by the person and at the place designated by the board of directors.

 

Except as otherwise expressly provided in Article II, Sections 7 and 11, and except for the assertion of dissenters' rights to the extent provided in the Wyoming General Corporation Law, the corporation shall be entitled to treat the registered holder of any shares of the corporation as the owner thereof for all purposes, and the corporation shall not be bound to recognize any equitable or other claim to, or interest in, such shares or rights deriving from such shares on the part of any person other than the registered holder, including without limitation any purchaser, assignee or transferee of such shares or rights deriving from such shares, unless and until such other person becomes the registered holder of such shares, whether or not the corporation shall have either actual or constructive notice of the claimed interest of such other person.

 

Section 5. TRANSFER AGENT, REGISTRARS AND PAYING AGENTS. The board may at its discretion appoint one or more transfer agents, registrars and agents for making payment upon any class of stock, bond, debenture or other security of the corporation. Such agents and registrars may be located either within or outside Wyoming. They shall have such rights and duties and shall be entitled to such compensation as may be agreed.

 

 

 

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ARTICLE VI

INDEMNIFICATION OF CERTAIN PERSONS

 

Section 1. INDEMNIFICATION. For purposes of Article VI, a "Proper Person" means any person (including the estate or personal representative of a director) who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, and whether formal or informal, by reason of the fact that he is or was a director, officer, employee, fiduciary or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any foreign or domestic profit or nonprofit corporation or of any partnership, joint venture, trust, profit or nonprofit unincorporated association, limited liability company, or other enterprise or employee benefit plan. The corporation shall indemnify any Proper Person against reasonably incurred expenses (including attorneys' fees), judgments, penalties, fines (including any excise tax assessed with respect to an employee benefit plan) and amounts paid in settlement reasonably incurred by him in connection with such action, suit or proceeding if it is determined by the groups set forth in Section 4 of this Article that he conducted himself in good faith and that he reasonably believed (i) in the case of conduct in his official capacity with the corporation, that his conduct was in the corporation’s best interests, or (ii) in all other cases (except criminal cases), that his conduct was at least not opposed to the corporation's best interests, or (iii) in the case of any criminal proceeding, that he had no reasonable cause to believe his conduct was unlawful. Official capacity means, when used with respect to a director, the office of director and, when used with respect to any other Proper Person, the office in a corporation held by the officer or the employment, fiduciary or agency relationship undertaken by the employee, fiduciary, or agent on behalf of the corporation. Official capacity does not include service for any other domestic or foreign corporation or other person or employee benefit plan.

 

A director's conduct with respect to an employee benefit plan for a purpose the director reasonably believed to be in the interests of the participants in or beneficiaries of the plan is conduct that satisfies the requirement in (ii) of this Section 1. A director's conduct with respect to an employee benefit plan for a purpose that the director did not reasonably believe to be in the interests of the participants in or beneficiaries of the plan shall be deemed not to satisfy the requirement of this section that he conduct himself in good faith.

 

No indemnification shall be made under this Article VI to a Proper Person with respect to any claim, issue or matter in connection with a proceeding by or in the right of a corporation in which the Proper Person was adjudged liable to the corporation or in connection with any proceeding charging that the Proper Person derived an improper personal benefit, whether or not involving action in an official capacity, in which he was adjudged liable on the basis that he derived an improper personal benefit. Further, indemnification under this section in connection with a proceeding brought by or in the right of the corporation shall be limited to reasonable expenses, including attorneys' fees, incurred in connection with the proceeding.

 

Section 2. RIGHT TO INDEMNIFICATION. The corporation shall indemnify any Proper Person who was wholly successful, on the merits or otherwise, in defense of any action, suit, or proceeding as to which he was entitled to indemnification under Section 1 of this Article VI against expenses (including attorneys' fees) reasonably incurred by him in connection with the proceeding without the necessity of any action by the corporation other than the determination in good faith that the defense has been wholly successful.

 

Section 3. EFFECT OF TERMINATION OF ACTION. The termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent shall not of itself create a presumption that the person seeking indemnification did not meet the standards of conduct described in Section 1 of this Article VI. Entry of a judgment by consent as part of a settlement shall not be deemed an adjudication of liability, as described in Section 2 of this Article VI.

 

 

 

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Section 4. GROUPS AUTHORIZED TO MAKE INDEMNIFICATION DETERMINATION. Except where there is a right to indemnification as set forth in Sections 1 or 2 of this Article or where indemnification is ordered by a court in Section 5, any indemnification shall be made by the corporation only as determined in the specific case by a proper group that indemnification of the Proper Person is permissible under the circumstances because he has met the applicable standards of conduct set forth in Section 1 of this Article. This determination shall be made by the board of directors by a majority vote of those present at a meeting at which a quorum is present, which quorum shall consist of directors not parties to the proceeding ("Quorum"). If a Quorum cannot be obtained, the determination shall be made by a majority vote of a committee of the board of directors designated by the board, which committee shall consist of two or more directors not parties to the proceeding, except that directors who are parties to the proceeding may participate in the designation of directors for the committee. If a Quorum of the board of directors cannot be obtained and the committee cannot be established, or even if a Quorum is obtained or the committee is designated and a majority of the directors constituting such Quorum or committee so directs, the determination shall be made by (i) independent legal counsel selected by a vote of the board of directors or the committee in the manner specified in this Section 4 or, if a Quorum of the full board of directors cannot be obtained and a committee cannot be established, by independent legal counsel selected by a majority vote of the full board (including directors who are parties to the action) or (ii) a vote of the shareholders. Authorization of indemnification and advance of expenses shall be made in the same manner as the determination that indemnification or advance of expenses is permissible except that, if the determination that indemnification or advance of expenses is permissible is made by independent legal counsel, authorization of indemnification and advance of expenses shall be made by the body that selected such counsel.

 

Section 5. COURT-ORDERED INDEMNIFICATION. Any Proper Person may apply for indemnification to the court conducting the proceeding or to another court of competent jurisdiction for mandatory indemnification under Section 2 of this Article, including indemnification for reasonable expenses incurred to obtain court-ordered indemnification. If a court determines that the Proper Person is entitled to indemnification under Section 2 of this Article, the court shall order indemnification, including the Proper Person's reasonable expenses incurred to obtain court-ordered indemnification. If the court determines that such Proper Person is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not he met the standards of conduct set forth in Section 1 of this Article or was adjudged liable in the proceeding, the court may order such indemnification as the court deems proper except that if the Proper Person has been adjudged liable, indemnification shall be limited to reasonable expenses incurred in connection with the proceeding and reasonable expenses incurred to obtain court-ordered indemnification.

 

Section 6. ADVANCE OF EXPENSES. Reasonable expenses (including attorneys' fees) incurred in defending an action, suit or proceeding as described in Section 1 may be paid by the corporation to any Proper Person in advance of the final disposition of such action, suit or proceeding upon receipt of (D a written affirmation of such Proper Person's good faith belief that he has met the standards of conduct prescribed by Section 1 of this Article VI, (ii) a written undertaking, executed personally or on the Proper Person's behalf, to repay such advances if it is ultimately determined that he did not meet the prescribed standards of conduct (the undertaking shall be an unlimited general obligation of the Proper Person but need not be secured and may be accepted without reference to financial ability to make repayment), and (iii) a determination is made by the proper group (as described in Section 4 of this Article VI) that the facts as then known to the group would not preclude indemnification. Determination and authorization of payments shall be made in the same manner specified in Section 4 of this Article VI.

 

Section 7. ADDITIONAL INDEMNIFICATION TO CERTAIN PERSONS OTHER THAN DIRECTORS. In addition to the indemnification provided to officers, employees, fiduciaries or agents because of their status as Proper Persons under this Article, the corporation may also indemnify and advance expenses to them if they are not directors of the corporation to a greater extent than is provided in these bylaws, if not inconsistent with public policy, and if provided for by general or specific action of its board of directors or shareholders or by contract.

 

Section 8. WITNESS EXPENSES. The sections of this Article VI do not limit the corporation's authority to payer reimburse expenses incurred by a director in connection with an appearance as a witness in a proceeding at a time when he has not been made or named as a defendant or respondent in the proceeding.

 

Section 9. REPORT TO SHAREHOLDERS. Any indemnification of or advance of expenses to a director in accordance with this Article VI, if arising out of a proceeding by or on behalf of the corporation, shall be reported in writing to the shareholders with or before the notice of the next shareholders' meeting. If the next shareholder action is taken without a meeting at the instigation of the board of directors, such notice shall be given to the shareholders at or before the time the first shareholder signs a writing consenting to such action.

 

 

 

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ARTICLE VII

INSURANCE

 

Section 1. PROVISION OF INSURANCE. By action of the board of directors, notwithstanding any interest of the directors in the action, the corporation may purchase and maintain insurance, in such scope and amounts as the board of directors deems appropriate, on behalf of any person who is or was a director, officer, employee, fiduciary or agent of the corporation, or who, while a director, officer, employee, fiduciary or agent of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any other foreign or domestic profit or nonprofit corporation or of any partnership, joint venture, trust, profit or non-profit unincorporated association, limited liability company, other enterprise or employee benefit plan, against any liability asserted against, or incurred by, him in that capacity or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under the provisions of Article VI or applicable law. Any such insurance may be procured from any insurance company designated by the board of directors of the corporation, whether such insurance company is formed under the laws of Wyoming or any other jurisdiction of the United States or elsewhere, including any insurance company in which the corporation has an equity interest or any other interest, through share ownership or otherwise.

 

ARTICLE VIII

MISCELLANEOUS

 

Section 1. SEAL. The board of directors may adopt a corporate seal, which shall contain the name of the corporation and the words, "Seal, Wyoming."

 

Section 2. FISCAL YEAR. The fiscal year of the corporation shall be as established by the board of directors.

 

Section 3. AMENDMENTS. The board of directors shall have power, to the maximum extent permitted by the Wyoming General Corporation Law, to make, amend and repeal the bylaws of the corporation at any regular or special meeting of the board unless the shareholders, in making, amending or repealing a particular bylaw, expressly provide that the directors may not amend or repeal such bylaw. The shareholders also shall have the power to make, amend or repeal the bylaws of the corporation at any annual meeting or at any special meeting called for that purpose.

 

Section 4. RECEIPT OF NOTICES BY THE CORPORATION. Notices, shareholder writings consenting to action, and other documents or writings shall be deemed to have been received by the corporation when they are actually received: (1) at the registered office of the corporation in Wyoming; (2) at the principal office of the corporation (as that office is designated in the most recent document filed by the corporation with the secretary of state for Wyoming designating a principal office) addressed to the attention of the secretary of the corporation; (3) by the secretary of the corporation wherever the secretary may be found; or (4) by any other person authorized from time to time by the board of directors or the president to receive such writings, wherever such person is found.

 

Section 5. GENDER. The masculine gender is used in these bylaws as a matter of convenience only and shall be interpreted to include the feminine and neuter genders as the circumstances indicate.

 

Section 6. CONFLICTS. In the event of any irreconcilable conflict between these bylaws and either the corporation's articles of incorporation or applicable law, the latter shall control.

 

Section 7. DEFINITIONS. Except as otherwise specifically provided in these bylaws, all terms used in these bylaws shall have the same definition as in the General Corporation Law of Wyoming.

 

 

 

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EX1A-3 HLDRS RTS 5 smart_1a-ex0301.htm SPECIMEN STOCK CERTIFICATE

Exhibit 3.1

 

 

 

   

 

 

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

 

                               
TEN COM     as tenants in common     UNIF GIFT MIN ACT -         Custodian      
TEN ENT     as tenants by the entireties           (Cust)       (Minor)  
JT TEN     as joint tenants with right of           under Uniform Gifts to Minors  
        survivorship and not as           Act    
        tenants in common             (State)  

 

Additional abbreviations may also be used though not in the above list.

 

For Value Received                                                                                           hereby sell, assign and transfer unto

 

         
PLEASE INSERT SOCIAL SECURITY OR SOME OTHER IDENTIFYING NUMBER OF ASSIGNEE        
     
     

 

   
PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE
 
     

 

 

   

 

         
        Shares
of the stock represented by the within Certificate, and do hereby irrevocably constitute and appoint    

 

 
        Attorney
to transfer the said stock on the books of the within named Corporation with full power of substitution in the premises.

 

Dated                                                  

 

 

   
NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER.

EX1A-6 MAT CTRCT 6 smart_1a-ex0604.htm EMPLOYMENT AGREEMENT - GREEN

Exhibit 6.4

 

 

Smart Decision, Inc.

 

 

EMPLOYMENT AGREEMENT

 

Adam Green - President

 

 

 

 

 

 

 

 

 

   
 

 

 

THIS EMPLOYMENT AGREEMENT (this "Agreement"), effective as of the Effective Date (as defined below), is entered into by and between Smart Decision, Inc., a Wyoming corporation (the "Company"), and Adam Green (the "Executive").

 

WHEREAS, the Company desires to employ the Executive and to enter into an agreement embodying the terms of such employment; and

 

WHEREAS, the Executive desires to accept employment with the Company, subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1. Employment Period. Subject to the provisions for earlier termination hereinafter provided, the Executive's employment hereunder shall be for a term (the "Employment Period") commencing on the Effective Date and ending on the fifth anniversary of the Effective Date (the "Initial Termination Date"); provided, however, that this Agreement shall be automatically extended for one additional year on the Initial Termination Date and on each subsequent anniversary of the Initial Termination Date, unless either the Executive or the Company elects not to so extend the term of the Agreement by notifying the other party, in writing, of such election not less than sixty (60) days prior to the last day of the term as then in effect. For purposes of this Agreement, "Effective Date" shall mean the date written below.

 

2. Terms of Employment.

 

(a) Position and Duties.

 

(i) During the Employment Period, the Executive shall serve as Chairman and President of the Company and shall perform such employment duties as are usual and customary for such positions. At the Company's request, the Executive shall serve the Company and/or its subsidiaries and affiliates in other offices and capacities in addition to the foregoing. In the event that the Executive, during the Employment Period, serves in any one or more of such additional capacities, the Executive's compensation shall not be increased beyond that specified in Section 2(b) of this Agreement. In addition, in the event the Executive's service in one or more of such additional capacities is terminated, the Executive's compensation, as specified in Section 2(b) of this Agreement, shall not be diminished or reduced in any manner as a result of such termination for so long as the Executive otherwise remains employed under the terms of this Agreement.

 

(ii) During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote appropriate attention and time during normal business hours to the business and affairs of the Company. During the Employment Period it shall not be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) fulfill limited teaching, speaking and writing engagements or (C) manage his personal investments, so long as such activities do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Company in accordance with this Agreement and (D) undertake other business responsibilities. It is expressly understood and agreed that to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive's responsibilities to Company; provided that no such activity that violates any written non-competition agreement between the parties shall be permitted.

 

 

 

 

 1 
 

 

(b) Compensation.

 

(i) Base Salary. During the Employment Period, the Executive shall receive a base salary (the "Base Salary") as determined by the Board of Directors from time to time with due regard for the state of development of the Company, as the same may be increased thereafter pursuant to the Company's normal practices for its executives. The Base Salary shall be paid at such intervals as the Company pays executive salaries generally. During the Employment Period, the Base Salary shall be reviewed at least annually for possible increase in the Company's discretion. Any increase in Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. The Base Salary shall not be reduced after any such increase and the term "Base Salary" as utilized in this Agreement shall refer to Base Salary as so increased.

 

(ii) Annual Bonus. In addition to the Base Salary, the Executive shall be eligible to earn, for each fiscal year of the Company ending during the Employment Period, an annual cash performance bonus annual Bonus") under the Company's bonus plan or plans applicable to senior executives. The amount of the Annual Bonus and the target performance goals applicable to the Annual Bonus shall be determined in accordance with the terms and conditions of such bonus plan as in effect from time to time.

 

(iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive shall be entitled to participate in all other incentive plans, practices, policies and programs, and all savings and retirement plans, practices, policies and programs, in each case that are applicable generally to senior executives of the Company.

 

(iv) Welfare Benefit Plans. During the Employment Period, the Executive and the Executive's eligible family members shall be eligible for participation in the welfare benefit plans, practices, policies and programs (including, if applicable, medical, dental, disability, employee life, group life and accidental death insurance plans and programs) maintained by the Company for its senior executives.

 

(v) Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses incurred by the Executive in accordance with the policies, practices and procedures of the Company provided to senior executives of the Company.

 

(vi) Fringe Benefits. During the Employment Period, the Executive shall be entitled to such fringe benefits and perquisites as are provided by the Company to its senior executives from time to time, in accordance with the policies, practices and procedures of the Company, and shall receive such additional fringe benefits and perquisites as the Company may, in its discretion, from time-to-time provide.

 

(vii) Vacation. During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the plans, policies, programs and practices of the Company applicable to its senior executives.

 

(viii) Additional Payments. The amount of compensation payable to Executive pursuant to Sections 2(b)(i) and (ii) above shall be "grossed up" as necessary (on an after-tax basis) to compensate for any additional social security withholding taxes due as a result of Executive's shared employment by any subsidiary and/or affiliate of the Company, the Company, if applicable.

 

3. Termination of Employment.

 

(a) Death or Disability. The Executive's employment shall terminate automatically upon the Executive's death or Disability dwing the Employment Period. For purposes of this Agreement, "Disability" shall mean the absence of the Executive from the Executive's duties with the Company on a full-time basis for 90 consecutive days or on a total of 180 days in any 12-month period, in either case as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive's legal representative.

 

(b) Cause. The Company may terminate the Executive's employment during the Employment Period for Cause or without Cause. For purposes of this Agreement, "Cause" shall mean the occurrence of any one or more of the following events unless the Executive fully corrects the circumstances constituting Cause within a reasonable period of time after receipt of the Notice of Termination (as defined below):

 

 

 

 2 
 

 

(i) the Executive's willful and continued failure to substantially perform his duties with the Company (other than any such failure resulting from the Executive's incapacity due to physical or mental illness or any such actual or anticipated failme after his issuance of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive by the Board, which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties;

 

(ii) the Executive's willful commission of an act of fraud or dishonesty resulting in economic or financial injury to the Company;

 

(iii) the Executive's conviction of, or entry by the Executive of a guilty plea to the commission of a felony or a crime involving moral turpitude;

 

(iv) a willful breach by the Executive of his fiduciary duty to the Company which results in economic or other injury to the Company; or

 

(v) the Executive's willful and material breach of the Executive's covenants set forth in Section 9 hereof.

 

For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel for the Executive, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of any of the conduct described in Section 3(b), and specifying the particulars thereof in detail; provided, that if the Executive is a member of the Board, the Executive shall not vote on such resolution nor shall the Executive be counted in determining the "entire membership" of the Board.

 

(c) Good Reason. The Executive's employment may be terminated by the Executive for Good Reason or by the Executive without Good Reason. For purposes of this Agreement, "Good Reason" shall mean the occurrence of any one or more of the following events without the Executive's prior written consent, unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction) prior to the Date of Termination (as defined below):

 

(i) the assignment to the Executive of any duties materially inconsistent in any respect with the Executive's position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 2 of this Agreement, or any other action by the Company which results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

(ii) the Company's reduction of the Executive's annual base salary or bonus opportunity, each as in effect on the date hereof or as the same may be increased from time to time;

 

(iii) the relocation of the Company's offices at which the Executive is principally employed (the "Principal Location") to a location more than thirty (30) miles from such location, or the Company's requiring the Executive to be based at a location more than thirty (30) miles from the Principal Location, except for required travel on the Company's business to an extent substantially consistent with the Executive's present business travel obligations;

 

(iv) the Company's failure to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 10 hereof; or

 

 

 

 3 
 

 

(v) the Company's failure to cure a material breach of its obligations under the Agreement after written notice is delivered to the Board by the Executive which specifically identifies the manner in which the Executive believes that the Company has breached its obligations under the Agreement and the Company is given a reasonable opportunity to cure any such breach.

 

(d) Notice of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other parties hereto given in accordance with Section 12(c) of this Agreement. For purposes of this Agreement, a ''Notice of Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving of such notice). The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive's or the Company's rights hereunder.

 

(e) Date of Termination. "Date of Termination" means (i) if the Executive's employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein (which date shall not be more than 30 days after the giving of such notice), as the case may be, (ii) if the Executive's employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Executive of such termination, (iii) if the Executive's employment is terminated by the Executive without Good Reason, the Date of Termination shall be the tenth day after the date on which the Executive notifies the Company of such termination, unless otherwise agreed by the Company and the Executive, and (iv) if the Executive's employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death or Disability of the Executive, as the case may be.

 

4. Obligations of the Company upon Termination.

 

(a) Without Cause or For Good Reason. If, during the Employment Period, the Company shall terminate the Executive's employment without Cause or the Executive shall terminate his employment for Good Reason:

 

(i) The Executive shall be paid, in a single lump sum payment within 60 days after the Date of Termination, the aggregate amount of (A) the Executive's earned but unpaid Base Salary and accrued vacation pay through the Date of Termination, and any Annual bonus required to be paid to the Executive pursuant to Section 2(b)(ii) above for any fiscal year of the Company that ends on or before the Date of Termination to the extent not previously paid (the "Accrued Obligations"), and (B) two (the "Severance Multiple") times the sum of (x) the annual Base Salary in effect on the Termination Date plus (y) the average Annual Bonus received by the Executive for the three complete fiscal years (or such lesser number of years as the Executive has been employed by the Company) of the Company immediately prior to the Termination Date (the "Severance Amount");

 

(ii) At the time when annual bonuses are paid to the Company's other senior executives for the fiscal year of the Company in which the Date of Termination occurs, the Executive shall be paid an Annual Bonus in an amount equal to the product of (x) the amount of the Annual Bonus to which the Executive would have been entitled if the Executive's employment had not been terminated, and (y) a fraction, the numerator of which is the number of clays in such fiscal year through the Date of Termination and the denominator of which is the total number of days in such fiscal year (a "Pro-Rated Annual Bonus");

 

(iii) For a period of years equal to the Severance Multiple, the Company shall continue to provide the Executive and the Executive's eligible family members with group health insurance covetage at least equal to that which would have been provided to them if the Executive's employment had not been terminated; provided, however, that if the Executive becomes re-employed with another employer and is eligible to receive group health insurance coverage under another employer's plans, the Company's obligations under this Section 4(a)(iii) shall be reduced to the extent comparable coverage is actually provided to the Executive and the Executive's eligible family members, and any such coverage shall be reported by the Executive to the Company.

 

 

 

 4 
 

 

(iv) The Company shall, at its sole expense and on an as-incurred basis, provide the Executive with outplacement services the scope and provider of which shall be reasonable and consistent with industry practice for similarly situated executives; and

 

(v) To the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any vested benefits and other amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliates (such other amounts and benefits shall be hereinafter referred to as the "Other Benefits").

 

Notwithstanding the foregoing, it shall be a condition to the Executive's right to receive the amounts provided for in Sections 4(a)(i)(B) and 4(a)(ii), (iii) and (iv) above that the Executive execute, deliver to the Company and not revoke a release of claims in substantially the form attached hereto as Exhibit A.

 

(b) For Cause or Without Good Reason. If the Executive's employment shall be terminated by the Company for Cause or by the Executive without Good Reason during the Employment Period, the Company shall have no further obligations to the Executive under this Agreement other than pursuant to Sections 7 and 8 hereof, and the obligation to pay to the Executive the Accrued Obligations in cash within 30 days after the Date of Termination and to provide the Other Benefits.

 

(c) Death or Disability. If the Executive's employment is terminated by reason of the Executive's death or Disability during the Employment Period:

 

(i) The Accrued Obligations shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, in cash within 30 days of the Date of Termination;

 

(ii) 100°/o of the Executive's annual Base Salary, as in effect on the Date of Termination, shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, in cash within 30 days following the Date of Termination;

 

(iii) The Pro-Rated Annual Bonus shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, at the time when annual bonuses are paid to the Company's other senior executives for the fiscal year of the Company in which the Date of Termination occurs;

 

(iv) For a period of twelve months following the Date of Termination, the Executive and the Executive's eligible family members shall continue to be provided with group health insurance coverage at least equal to that which would have been provided to them if the Executive's employment had not been terminated; provided, however, that if the Executive becomes re-employed with another employer and is eligible to receive group health insurance coverage under another employer's plans, the Company's obligations under this Section 4(dXiv) shall be reduced to the extent comparable coverage is actually provided to the Executive and the Executive's eligible family members, and any such coverage shall be reported by the Executive to the Company; and timely basis.

 

(v) The Other Benefits shall be paid or provided to the Executive on a timely basis.

 

5. Termination Upon a Change in Control. If a Change in Control (as defined herein) occurs during the Employment Period and the Executive's employment is terminated (a) by the Company without Cause or by the Executive for Good Reason, in each case within two (2) years after the effective date of the Change in Control or (b) by the Executive for any reason on or within 30 days after the one year anniversary of the effective date of the Change in Control, then the Executive shall be entitled to the payments and benefits provided in Section 4(a), subject to the terms and conditions thereof: except that for purposes of this Section 5, the Severance Multiple shall equal three (3). In addition, in the event of such a termination of the Executive's employment, all outstanding stock options, restricted stock and other equity awards granted to the Executive under any of the Company's equity incentive plans (or awards substituted therefore covering the securities of a successor company) shall become immediately vested and exercisable in full. For purposes of this Agreement, "Change in Control" shall mean the occurrence of any of the following events:

 

(i) the acquisition, directly or indirectly, by any "person" or "group" (as those terms are defined in Sections 3(a)(9), 13(d), and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act") and the rules thereunder) of "beneficial ownership" (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors ("voting securities") of the Company that represent 35% or more of the combined voting power of the Company's then outstanding voting securities, other than

 

 

 

 5 
 

 

(a) an acquisition of securities by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company, or

 

(B) an acquisition of securities by the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the stock of the Company, or

 

(C) an acquisition of securities pursuant to a transaction described in clause (iii) below that would not be a Change in Control under clause (iii), or

 

(D) any direct or indirect acquisition of securities by the Executive or his family, or any entity controlled thereby;

 

Notwithstanding the foregoing, the following event shall not constitute an "acquisition" by any person or group for purposes of this clause (i): an acquisition of the Company's securities by the Company which causes the Company's voting securities beneficially owned by a person or group to represent 35% or more of the combined voting power of the Company's then outstanding voting securities; provided, however, that if a person or group shall become the beneficial owner of 35% or more of the combined voting power of the Company's then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such share acquisitions by the Company, become the beneficial owner of any additional voting securities of the Company, then such acquisition shall constitute a Change in Control;

 

(ii) individuals who, as of the Effective Date, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election by the Company's shareholders, or nomination for election by the Board, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an election contest with respect to the election or removal of directors or other solicitation of proxies or consents by or on behalf of a person other than the Board;

 

(iii) the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company's assets or (z) the acquisition of assets or stock of another entity, in each case, other than a transaction

 

(A) which results in the Company's voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of 1he Company's assets or otherwise succeeds to the business of the Company (the Company or such person, the "Successor Entity")) directly or indirectly, at least 50% of the combined voting power of the Successor Entity's outstanding voting securities immediately after the transaction, and

 

(B) after which no person or group beneficially owns voting securities representing 35% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning 35% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or

 

(iv) approval by the Company's shareholders of a liquidation or dissolution of the Company.

 

For purposes of clause (i) above, the calculation of voting power shall be made as if the date of the acquisition were a record date for a vote of the Company's shareholders, and for purposes of clause (iii) above, the calculation of voting power shall be made as if the date of the consummation of the transaction were a record date for a vote of the Company's shareholders.

 

 

 

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6. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive's continuing or future participation in any plan, program, policy or practice provided by the Company and for which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.

 

7. Full Settlement. The Company's obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and except as expressly provided, such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay as incurred (within 30 days following the Company's receipt of an invoice from the Executive), to the full extent permitted by law, all reasonable legal fees and expenses which the Executive or his beneficiaries may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive or his beneficiaries about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code. The preceding sentence shall not apply with respect to any such contest if the court having jurisdiction over such contest determines that the Executive's claim in such contest is frivolous or maintained in bad faith.

 

8. Certain Additional Payments by the Company.

 

(a) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any Payment would be subject to the Excise Tax, then the Executive shall be entitled to receive an additional payment (the "Excise Tax Gross-Up Payment") in an amount such that, after payment by the Executive of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Excise Tax Gross-Up Payment, the Executive retains an amount of the Excise Tax Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this Section 8(a), if it shall be determined that the Executive is entitled to the Excise Tax Gross-Up Payment, but that the Parachute Value of all Payments does not exceed 110% of the Safe Harbor Amount, then no Excise Tax Gross-Up Payment shall be made to the Executive and the amounts payable under this Agreement shall be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The reduction of the amounts payable hereunder, if applicable, shall be made by first reducing the payments under Section 4(aXi), unless an alternative method of reduction is elected by the Executive, and in any event shall be made in such a manner as to maximize the Value of all Payments actually made to the Executive. For purposes of reducing the Payments to the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. If the reduction of the amount payable under this Agreement would not result in a reduction of the Parachute Value of all Payments to the Safe Harbor Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section 8(a). The Company's obligation to make Excise Tax Gross-Up Payments under this Section 8 shall not be conditioned upon the Executive's termination of employment.

 

(b) Subject to the provisions of Section 8(c), all determinations required to be made under this Section 8, including whether and when an Excise Tax Gross-Up Payment is required, the amount of such Excise Tax Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by such nationally recognized accounting firm as may be selected by the Company and reasonably acceptable to the Executive (the "Accounting Finn"); provided, that the Accounting Firm's determination shall be made based upon "substantial authority" within the meaning of Section 6662 of the Code. The Accounting Firm shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment or such earlier time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Excise .Tax Gross-Up Payment, as determined pursuant to this Section 8, shall be paid by the Company to the Executive within five days of the receipt of the Accounting Firm's determination. Any determination by the Accounting Firm shall be binding upon the Company and the Executive, unless the Company obtains an opinion of outside legal counsel, based upon at least "substantial authority" within the meaning of Section 6662 of the Code, reaching a different determination, in which event such l gal opinion shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Excise Tax Gross-Up Payments that will not have been made by the Company should have been made (the "Underpayment"), consistent with the calculations required to be made hereunder. In the event the Company exhausts its remedies pursuant to Section 8(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

 

 

 

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(c) The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Excise Tax Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than IO business days after the Executive is informed in writing of such claim. The Executive shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that the Company desires to contest such claim, the Executive shall:

 

(i) give the Company any information reasonably requested by the Company relating to such claim,

 

(ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

 

(iii) cooperate with the Company in good faith in order effectively to contest such claim, and

 

(iv) permit the Company to participate in any proceedings relating to such claim;

 

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 8(c), the Company shall control all proceedings taken in connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that, if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to such advance or with respect to any imputed income in connection with such advance; and provided, further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be limited to issues with respect to which the Excise Tax Gross Up Payment would be payable hereunder, and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

 

(d) If, after the receipt by the Executive of an Excise Tax Gross-Up Payment or an amount advanced by the Company pursuant to Section 8(c), the Executive becomes entitled to receive any refund with respect to the Excise Tax to which such Excise Tax Gross-Up Payment relates or with respect to such claim, the Executive shall (subject to the Company's complying with the requirements of Section 8(c), if applicable) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 8(c), a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Excise Tax Gross-Up Payment required to be paid.

 

(e) Notwithstanding any other provision of this Section 8, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Executive, all or any portion of any Excise Tax Gross-Up Payment, and the Executive hereby consents to such withholding.

 

(f) Any other liability for unpaid or unwithheld Excise Taxes shall be borne exclusively by the Company, in accordance with Section 3403 of the Code. The foregoing sentence shall not in any manner relieve the Company of any of its obligations under this Employment Agreement.

 

 

 

 8 
 

 

(g) Definitions. The following terms shall have the following meanings for poses of this Section 8:

 

(i) "Excise Tax" shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

 

(ii) "Parachute Value" of a Payment shall mean the present value as of the date of the change of control for purposes of Section 2800 of the Code of the portion of such Payment that constitutes a "parachute payment" under Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.

 

(iii) A "Payment" shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(bX2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise.

 

(iv) The "Safe Harbor Amount" shall mean 2.99 times the Executive's "base amount," within the meaning of Section 280G(b)(3) of the Code.

 

(v) "Value" of a Payment shall mean the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code, as determined by the Accounting Firm using the discount rate required by Section 2800(d)(4) of the Code.

 

9. Confidential Information and Non-Solicitation.

 

(a) In no event shall an asserted violation of the provisions of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. However, in recognition of the facts that irreparable injury will result to the Company in the event of a breach by the Executive of his obligations under Sections 9(a) and (b) of this Agreement, that monetary damages for such breach would not be readily calculable, and that the Company would not have an adequate remedy at law therefor, the Executive acknowledges, consents and agrees that in the event of such breach, or the threat thereof, the Company shall be entitled, in addition to any other legal remedies and damages available, to specific performance thereof and to temporary and permanent injunctive relief (without the necessity of posting a bond) to restrain the violation or threatened violation of such obligations by the Executive.

 

(b) The Employee shall, at all times during and subsequent to the Term, keep secret and retain in strictest confidence all confidential matters of the Company, and the "know-how", trade secrets, technical processes, inventions, equipment specifications, equipment designs, plans, drawings, research projects, confidential client lists, details of client, subcontractor or consultant contracts, pricing policies, operational methods, marketing plans and strategies, project development, acquisition and bidding techniques and plans, business acquisition plans, and new personnel acquisition plans of the Company and its subsidiaries and divisions (whether now known or hereafter learned by the Employee), except to the extent that (i) such information is generally available to the public without restriction, (ii) the Employee obtains confidentiality agreements with respect to such confidential information, (iii) the Employee is requested by the Board of Directors of the Company or a Committee thereof: or by the Chairman of the Company, to disclose such confidential information, (iv) such information is provided to a customer of the Company pursuant to a request received from such customer in the ordinary course of business, or (v) the Employee is under compulsion of either a court order or a governmental agency's or authority's inquiry, order or request to so disclose such information.

 

(c) Property of the Company.

 

(i) Except as otherwise provided herein, all lists, records and other non personal documents or papers (and all copies thereof) relating to the Company and/or any of its subsidiaries or divisions, including such items stored in computer memories, on microfiche or by any other means, made or compiled by or on behalf of the Employee, or made available to the Employee, are and shall be the property of the Company, and shall be delivered to the Company on the date of termination of the Employee's employment with the Company, or sooner upon request of the Company at any time or from time to time.

 

(ii) All inventions, including any procedures, formulas, methods, processes, uses, apparatuses, patterns, designs, plans, drawings, devices or configurations of any kind, any and all improvements to them which are developed, discovered, made or produced, and all trade secrets and information used by the Company and/or its subsidiaries and divisions (including, without limitation, any such matters created or developed by the Employee during the term of this

Agreement), shall be the exclusive property of the Company or the subject subsidiary, and shall be delivered to the Company or the subject subsidiary (without the Employee retaining any copies, components or records thereof) on the date of termination of the Employee's employment with the Company; provided, however, that nothing herein contained shall be deemed to grant to the Company any property rights in any inventions or other intellectual property which may at any time be developed by the Employee which is wholly unrelated to any business then engaged in or under development by the Company.

 

 

 

 9 
 

 

(d) The Employee shall not, at any time (whether during the term of this Agreement or at any time thereafter), directly or indirectly, for or on behalf of any business enterprise other than the Company and/or its subsidiaries and affiliates, solicit any employee of the Company or any of its subsidiaries to leave his or her employment with the Company or such subsidiary, or encourage any such employee to leave such employment, without the prior written approval of the Company in each instance.

 

(e) Non-Competition. For so long as the Employee shall be receiving any compensation or remuneration under this Agreement, and for a further period of one (1) year thereafter, the Employee shall not, directly or indirectly, whether individually or as an employee, stockholder (other than the passive ownership of up to 5% of the capital stock of a publicly traded corporation), partner, joint venturer, agent or other representative of any other person, firm or corporation, engage or have any interest in any business (other than the Company or any of its subsidiaries or affiliates) which, in any country in which the Company or any of its subsidiaries or divisions does or solicits business during the Term, is engaged in or derives any revenues from performing any functionally equivalent services or marketing any functionally equivalent products as those services provided and products marketed by the Company or any of its subsidiaries or divisions during the Term.

 

(f) Severability of Covenants. The Employee acknowledges and agrees that the provisions of this Section 9 of this Agreement are (a) made in consideration of the premises and undertakings of the Company set forth herein, (b) made for good, valuable and adequate consideration received and to be received by the Employee, and (c) reasonable and necessary, in terms of the time, geographic scope and nature of the restrictions, for the protection of the Company and the business and good will thereof. It is intended that the provisions of this Section 9 be fully severable, and in the event that any of the foregoing restrictions, or any portion of the foregoing restrictions, shall be deemed contrary to law, invalid or unenforceable in any respect by any court or tribunal of competent jurisdiction, then such restrictions shall be deemed to be amended, modified and reduced in scope and effect, as to duration and/or geographic area, only to that extent necessary to render same valid and enforceable (and in such reduced form, such provisions shall then be enforceable), and any other of the foregoing restrictions shall be unaffected and shall remain in full force and effect.

 

(g) Equitable Remedies. The parties hereby acknowledge that, in the event of any breach or threatened breach by the Employee of the provisions of this Section 9, the Company will suffer irreparable harm and will not have an adequate remedy at law. Accordingly, in the event of any such breach or threatened breach, the Company may seek and obtain appropriate equitable relief to restrain or enjoin such breach or threatened breach and/or to compel compliance herewith.

 

(h) Trade Secrets. The Parties hereby agree and stipulate that any confidential information of the Parties shall be deemed a "trade secret" as that term is defined under the Economic Espionage Act of 1996 (the "Act"), and further agree and stipulate that the Parties by this Agreement have taken all reasonable steps under the Act to keep such information secret.

 

10. Successors.

 

(a) This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives.

 

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

11. Payment of Financial Obligations. The payment or provision to the Executive by the Company of any remuneration, benefits or other financial obligations pursuant to this Agreement shall be allocated to the Company and, if applicable, any subsidiary and/or affiliate thereof from time to time.

 

 

 

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12. Miscellaneous.

 

(a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

 

(b) Arbitration. Except as set forth in Section 9(c) above, any disagreement, dispute, controversy or claim arising out of or relating to this Agreement or the interpretation of this Agreement or any arrangements relating to this Agreement or contemplated in this Agreement or the breach, termination or invalidity thereof shall be settled by final and binding arbitration administered by the America Arbitration Association in Boca Raton, Florida in accordance with the then existing American Arbitration Association Rules and Procedures for Employment Disputes. In the event of such an arbitration proceeding, the Executive and the Company shall select a mutually acceptable neutral arbitrator from among the American Arbitration Association panel of arbitrators. In the event the Executive and the Company cannot agree on an arbitrator, the Administrator of American Arbitration Association will appoint an arbitrator. Neither the Executive nor the Company nor the arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all parties. Except as provided herein, the Federal Arbitration Act shall govern the interpretation, enforcement and all - The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the state of Florida, or federal law, or both, as applicable, and the arbitrator is without jurisdiction to apply any different substantive law. The arbitrator shall have the authority to entertain a motion to dismiss and/or a motion for summary judgment by any party and shall apply the standards governing such motions under the Federal Rules of Civil Procedure. The arbitrator shall render an award and a written, reasoned opinion in support thereof. Judgment upon the award may be entered in any court having jurisdiction thereof.

 

(c) Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested postage prepaid, addressed as follows:

 

If to the Executive: at the Executive's most recent address on the records of the Company,

 

If to the Company: at the Company's principal offices, attention of the Company's Secretary and President.

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective hen actually received by the addressee.

 

(d) Sarbanes-Oxley Act of 2002. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that any transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section 13(k) of the Exchange Act and the rules and regulations promulgated thereunder, then such transfer or deemed transfer shall not be made to the extent necessary or appropriate so as not to violate the Exchange Act and the rules and regulations promulgated thereunder.

 

(e) Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

(f) Withholding. The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. In addition, notwithstanding any other provision of this Agreement, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable trucing authority, for the benefit of the Executive, all or any portion of any Excise Tax Gross-Up Payment, and the Executive hereby consents to such withholding.

 

(g) No Waiver. The Executive's or the Company's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 3(c) of this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

 

 

 

 11 
 

 

(h) Entire Agreement. As of the Effective Date, this Agreement, together with any non-competition agreement between the parties, constitutes the final, complete and exclusive agreement between the Executive and the Company with respect to the subject matter hereof and replaces and supersedes any and all other agreements, offers or promises, whether oral or written, made to you by any related entity, or representative of the Company or the transactions related thereto. The Executive agrees that any such agreement, offer or promise between the Executive and Employer (or any representative thereof) is hereby terminated and will be of no further force or effect, and the Executive acknowledges and agrees that upon his execution of this Agreement, he will have no right or interest in or with respect to any such agreement, offer or promise. In the event that the Effective Date does not occur, this Agreement (including, without limitation, the immediately preceding sentence) shall have no force or effect.

 

(i) Counterparts. This Agreement may be executed simultaneously in two counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and, pursuant to the authoriz.ation from the Board, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year written below.

 

 

Smart Decision, Inc.

A Wyoming Corporation

 

 

By: /s/ Adam Green                        

Name: Adam Green

Title: President

 

 

EXECUTIVE

 

/s/ Adam Green                              

Adam Green

 

EFFECTIVE DATE:

 

Dated: February 15, 2018

 

 

 

 

 

 

 

 

 

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EXHIBIT A

 

GENERAL RELEASE

 

For a valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the "Releasees" hereunder, consisting of Smart Decision, Inc., a Wyoming corporation, and each of their partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys' fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called "Claims"), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof. The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasee's right to terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act, and the Florida Fair Employment and Housing Act.

 

THE UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF RELEVANT LAW, WHICH PROVIDES GENERALLY AS FOLLOWS:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

 

THE UNDERSIGNED, BEING AWARE OF SAID LAW, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

(A) HE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

 

(B) HE HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

 

(C) HE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

 

 

 

 

 

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The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which he may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys' fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer. It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity.

 

The undersigned agrees that if he hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys' fees incurred by Releasees in defending or otherwise responding to said suit or Claim.

 

The undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned.

 

IN WITNESS WHEREOF, the undersigned has executed this Release this 15th day of February, 2018

 

 

/s/ Adam Green

 

 

 

 

 

 

 

 

 

 

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EX1A-6 MAT CTRCT 7 smart_1a-ex0605.htm EMPLOYMENT AGREEMENT - GUTMANN

Exhibit 6.5

 

 

Smart Decision, Inc.

 

 

EMPLOYMENT AGREEMENT

 

Eric Gutmann - Secretary - Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   
 

 

THIS EMPLOYMENT AGREEMENT (this "Agreement"), effective as of the Effective Date (as defined below), is entered into by and between Smart Decision, Inc., a Wyoming corporation (the "Company"), and Eric Gutmann (the "Executive").

 

WHEREAS, the Company desires to employ the Executive and to enter into an agreement embodying the terms of such employment; and

 

WHEREAS, the Executive desires to accept employment with the Company, subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1. Employment Period. Subject to the provisions for earlier termination hereinafter provided, the Executive's employment hereunder shall be for a term (the "Employment Period") commencing on the Effective Date and ending on the fifth anniversary of the Effective Date (the "Initial Termination Date"); provided, however, that this Agreement shall be automatically extended for one additional year on the Initial Termination Date and on each subsequent anniversary of the Initial Termination Date, unless either the Executive or the Company elects not to so extend the term of the Agreement by notifying the other party, in writing, of such election not less than sixty (60) days prior to the last day of the term as then in effect. For purposes of this Agreement, "Effective Date" shall mean the date written below.

 

2. Terms of Employment.

 

(a) Position and Duties.

 

(i) During the Employment Period, the Executive shall serve as Secretary - Treasurer of the Company and shall perform such employment duties as are usual and customary for such positions. At the Company's request, the Executive shall serve the Company and/or its subsidiaries and affiliates in other offices and capacities in addition to the foregoing. In the event that the Executive, during the Employment Period, serves in any one or more of such additional capacities, the Executive's compensation shall not be increased beyond that specified in Section 2(b) of this Agreement. In addition, in the event the Executive's service in one or more of such additional capacities is terminated, the Executive's compensation, as specified in Section 2(b) of this Agreement, shall not be diminished or reduced in any manner as a result of such termination for so long as the Executive otherwise remains employed under the terms of this Agreement.

 

(ii) During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote appropriate attention and time during normal business hours to the business and affairs of the Company. During the Employment Period it shall not be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) fulfill limited teaching, speaking and writing engagements or (C) manage his personal investments, so long as such activities do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Company in accordance with this Agreement and (D) undertake other business responsibilities. It is expressly understood and agreed that to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive's responsibilities to Company; provided that no such activity that violates any written non-competition agreement between the parties shall be permitted.

 

 

 

 

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(b) Compensation.

 

(i) Base Salary. During the Employment Period, the Executive shall receive a base salary (the "Base Salary") as determined by the Board of Directors from time to time with due regard for the state of development of the Company, as the same may be increased thereafter pursuant to the Company's normal practices for its executives. The Base Salary shall be paid at such intervals as the Company pays executive salaries generally. During the Employment Period, the Base Salary shall be reviewed at least annually for possible increase in the Company's discretion. Any increase in Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. The Base Salary shall not be reduced after any such increase and the term "Base Salary" as utilized in this Agreement shall refer to Base Salary as so increased.

 

(ii) Annual Bonus. In addition to the Base Salary, the Executive shall be eligible to earn, for each fiscal year of the Company ending during the Employment Period, an annual cash performance bonus annual Bonus") under the Company's bonus plan or plans applicable to senior executives. The amount of the Annual Bonus and the target performance goals applicable to the Annual Bonus shall be determined in accordance with the terms and conditions of such bonus plan as in effect from time to time.

 

(iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive shall be entitled to participate in all other incentive plans, practices, policies and programs, and all savings and retirement plans, practices, policies and programs, in each case that are applicable generally to senior executives of the Company.

 

(iv) Welfare Benefit Plans. During the Employment Period, the Executive and the Executive's eligible family members shall be eligible for participation in the welfare benefit plans, practices, policies and programs (including, if applicable, medical, dental, disability, employee life, group life and accidental death insurance plans and programs) maintained by the Company for its senior executives.

 

(v) Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses incurred by the Executive in accordance with the policies, practices and procedures of the Company provided to senior executives of the Company.

 

(vi) Fringe Benefits. During the Employment Period, the Executive shall be entitled to such fringe benefits and perquisites as are provided by the Company to its senior executives from time to time, in accordance with the policies, practices and procedures of the Company, and shall receive such additional fringe benefits and perquisites as the Company may, in its discretion, from time-to-time provide.

 

(vii) Vacation. During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the plans, policies, programs and practices of the Company applicable to its senior executives.

 

(viii) Additional Payments. The amount of compensation payable to Executive pursuant to Sections 2(b)(i) and (ii) above shall be "grossed up" as necessary (on an after-tax basis) to compensate for any additional social security withholding taxes due as a result of Executive's shared employment by any subsidiary and/or affiliate of the Company, the Company, if applicable.

 

3. Termination of Employment.

 

(a) Death or Disability. The Executive's employment shall terminate automatically upon the Executive's death or Disability dwing the Employment Period. For purposes of this Agreement, "Disability" shall mean the absence of the Executive from the Executive's duties with the Company on a full-time basis for 90 consecutive days or on a total of 180 days in any 12-month period, in either case as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive's legal representative.

 

(b) Cause. The Company may terminate the Executive's employment during the Employment Period for Cause or without Cause. For purposes of this Agreement, "Cause" shall mean the occurrence of any one or more of the following events unless the Executive fully corrects the circumstances constituting Cause within a reasonable period of time after receipt of the Notice of Termination (as defined below):

 

 

 

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(i) the Executive's willful and continued failure to substantially perform his duties with the Company (other than any such failure resulting from the Executive's incapacity due to physical or mental illness or any such actual or anticipated failme after his issuance of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive by the Board, which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties;

 

(ii) the Executive's willful commission of an act of fraud or dishonesty resulting in economic or financial injury to the Company;

 

(iii) the Executive's conviction of, or entry by the Executive of a guilty plea to the commission of a felony or a crime involving moral turpitude;

 

(iv) a willful breach by the Executive of his fiduciary duty to the Company which results in economic or other injury to the Company; or

 

(v) the Executive's willful and material breach of the Executive's covenants set forth in Section 9 hereof.

 

For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel for the Executive, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of any of the conduct described in Section 3(b), and specifying the particulars thereof in detail; provided, that if the Executive is a member of the Board, the Executive shall not vote on such resolution nor shall the Executive be counted in determining the "entire membership" of the Board.

 

(c) Good Reason. The Executive's employment may be terminated by the Executive for Good Reason or by the Executive without Good Reason. For purposes of this Agreement, "Good Reason" shall mean the occurrence of any one or more of the following events without the Executive's prior written consent, unless the Company fully corrects the circumstances constituting Good Reason (provided such circumstances are capable of correction) prior to the Date of Termination (as defined below):

 

(i) the assignment to the Executive of any duties materially inconsistent in any respect with the Executive's position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 2 of this Agreement, or any other action by the Company which results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive;

 

(ii) the Company's reduction of the Executive's annual base salary or bonus opportunity, each as in effect on the date hereof or as the same may be increased from time to time;

 

(iii) the relocation of the Company's offices at which the Executive is principally employed (the "Principal Location") to a location more than thirty (30) miles from such location, or the Company's requiring the Executive to be based at a location more than thirty (30) miles from the Principal Location, except for required travel on the Company's business to an extent substantially consistent with the Executive's present business travel obligations;

 

(iv) the Company's failure to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 10 hereof; or

 

 

 

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(v) the Company's failure to cure a material breach of its obligations under the Agreement after written notice is delivered to the Board by the Executive which specifically identifies the manner in which the Executive believes that the Company has breached its obligations under the Agreement and the Company is given a reasonable opportunity to cure any such breach.

 

(d) Notice of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other parties hereto given in accordance with Section 12(c) of this Agreement. For purposes of this Agreement, a ''Notice of Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving of such notice). The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive's or the Company's rights hereunder.

 

(e) Date of Termination. "Date of Termination" means (i) if the Executive's employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein (which date shall not be more than 30 days after the giving of such notice), as the case may be, (ii) if the Executive's employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Executive of such termination, (iii) if the Executive's employment is terminated by the Executive without Good Reason, the Date of Termination shall be the tenth day after the date on which the Executive notifies the Company of such termination, unless otherwise agreed by the Company and the Executive, and (iv) if the Executive's employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death or Disability of the Executive, as the case may be.

 

4. Obligations of the Company upon Termination.

 

(a) Without Cause or For Good Reason. If, during the Employment Period, the Company shall terminate the Executive's employment without Cause or the Executive shall terminate his employment for Good Reason:

 

(i) The Executive shall be paid, in a single lump sum payment within 60 days after the Date of Termination, the aggregate amount of (A) the Executive's earned but unpaid Base Salary and accrued vacation pay through the Date of Termination, and any Annual bonus required to be paid to the Executive pursuant to Section 2(b)(ii) above for any fiscal year of the Company that ends on or before the Date of Termination to the extent not previously paid (the "Accrued Obligations"), and (B) two (the "Severance Multiple") times the sum of (x) the annual Base Salary in effect on the Termination Date plus (y) the average Annual Bonus received by the Executive for the three complete fiscal years (or such lesser number of years as the Executive has been employed by the Company) of the Company immediately prior to the Termination Date (the "Severance Amount");

 

(ii) At the time when annual bonuses are paid to the Company's other senior executives for the fiscal year of the Company in which the Date of Termination occurs, the Executive shall be paid an Annual Bonus in an amount equal to the product of (x) the amount of the Annual Bonus to which the Executive would have been entitled if the Executive's employment had not been terminated, and (y) a fraction, the numerator of which is the number of clays in such fiscal year through the Date of Termination and the denominator of which is the total number of days in such fiscal year (a "Pro-Rated Annual Bonus");

 

(iii) For a period of years equal to the Severance Multiple, the Company shall continue to provide the Executive and the Executive's eligible family members with group health insurance covetage at least equal to that which would have been provided to them if the Executive's employment had not been terminated; provided, however, that if the Executive becomes re-employed with another employer and is eligible to receive group health insurance coverage under another employer's plans, the Company's obligations under this Section 4(a)(iii) shall be reduced to the extent comparable coverage is actually provided to the Executive and the Executive's eligible family members, and any such coverage shall be reported by the Executive to the Company.

 

 

 

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(iv) The Company shall, at its sole expense and on an as-incurred basis, provide the Executive with outplacement services the scope and provider of which shall be reasonable and consistent with industry practice for similarly situated executives; and

 

(v) To the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any vested benefits and other amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliates (such other amounts and benefits shall be hereinafter referred to as the "Other Benefits").

 

Notwithstanding the foregoing, it shall be a condition to the Executive's right to receive the amounts provided for in Sections 4(a)(i)(B) and 4(a)(ii), (iii) and (iv) above that the Executive execute, deliver to the Company and not revoke a release of claims in substantially the form attached hereto as Exhibit A.

 

(b) For Cause or Without Good Reason. If the Executive's employment shall be terminated by the Company for Cause or by the Executive without Good Reason during the Employment Period, the Company shall have no further obligations to the Executive under this Agreement other than pursuant to Sections 7 and 8 hereof, and the obligation to pay to the Executive the Accrued Obligations in cash within 30 days after the Date of Termination and to provide the Other Benefits.

 

(c) Death or Disability. If the Executive's employment is terminated by reason of the Executive's death or Disability during the Employment Period:

 

(i) The Accrued Obligations shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, in cash within 30 days of the Date of Termination;

 

(ii) 100°/o of the Executive's annual Base Salary, as in effect on the Date of Termination, shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, in cash within 30 days following the Date of Termination;

 

(iii) The Pro-Rated Annual Bonus shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, at the time when annual bonuses are paid to the Company's other senior executives for the fiscal year of the Company in which the Date of Termination occurs;

 

(iv) For a period of twelve months following the Date of Termination, the Executive and the Executive's eligible family members shall continue to be provided with group health insurance coverage at least equal to that which would have been provided to them if the Executive's employment had not been terminated; provided, however, that if the Executive becomes re-employed with another employer and is eligible to receive group health insurance coverage under another employer's plans, the Company's obligations under this Section 4(dXiv) shall be reduced to the extent comparable coverage is actually provided to the Executive and the Executive's eligible family members, and any such coverage shall be reported by the Executive to the Company; and timely basis.

 

(v) The Other Benefits shall be paid or provided to the Executive on a timely basis.

 

5. Termination Upon a Change in Control. If a Change in Control (as defined herein) occurs during the Employment Period and the Executive's employment is terminated (a) by the Company without Cause or by the Executive for Good Reason, in each case within two (2) years after the effective date of the Change in Control or (b) by the Executive for any reason on or within 30 days after the one year anniversary of the effective date of the Change in Control, then the Executive shall be entitled to the payments and benefits provided in Section 4(a), subject to the terms and conditions thereof: except that for purposes of this Section 5, the Severance Multiple shall equal three (3). In addition, in the event of such a termination of the Executive's employment, all outstanding stock options, restricted stock and other equity awards granted to the Executive under any of the Company's equity incentive plans (or awards substituted therefore covering the securities of a successor company) shall become immediately vested and exercisable in full. For purposes of this Agreement, "Change in Control" shall mean the occurrence of any of the following events:

 

(i) the acquisition, directly or indirectly, by any "person" or "group" (as those terms are defined in Sections 3(a)(9), 13(d), and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act") and the rules thereunder) of "beneficial ownership" (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors ("voting securities") of the Company that represent 35% or more of the combined voting power of the Company's then outstanding voting securities, other than

 

 

 

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(a) an acquisition of securities by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company, or

 

(B) an acquisition of securities by the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the stock of the Company, or

 

(C) an acquisition of securities pursuant to a transaction described in clause (iii) below that would not be a Change in Control under clause (iii), or

 

(D) any direct or indirect acquisition of securities by the Executive or his family, or any entity controlled thereby;

 

Notwithstanding the foregoing, the following event shall not constitute an "acquisition" by any person or group for purposes of this clause (i): an acquisition of the Company's securities by the Company which causes the Company's voting securities beneficially owned by a person or group to represent 35% or more of the combined voting power of the Company's then outstanding voting securities; provided, however, that if a person or group shall become the beneficial owner of 35% or more of the combined voting power of the Company's then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such share acquisitions by the Company, become the beneficial owner of any additional voting securities of the Company, then such acquisition shall constitute a Change in Control;

 

(ii) individuals who, as of the Effective Date, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election by the Company's shareholders, or nomination for election by the Board, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an election contest with respect to the election or removal of directors or other solicitation of proxies or consents by or on behalf of a person other than the Board;

 

(iii) the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company's assets or (z) the acquisition of assets or stock of another entity, in each case, other than a transaction

 

(A) which results in the Company's voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of 1he Company's assets or otherwise succeeds to the business of the Company (the Company or such person, the "Successor Entity")) directly or indirectly, at least 50% of the combined voting power of the Successor Entity's outstanding voting securities immediately after the transaction, and

 

(B) after which no person or group beneficially owns voting securities representing 35% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning 35% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or

 

(iv) approval by the Company's shareholders of a liquidation or dissolution of the Company.

 

For purposes of clause (i) above, the calculation of voting power shall be made as if the date of the acquisition were a record date for a vote of the Company's shareholders, and for purposes of clause (iii) above, the calculation of voting power shall be made as if the date of the consummation of the transaction were a record date for a vote of the Company's shareholders.

 

 

 

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6. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive's continuing or future participation in any plan, program, policy or practice provided by the Company and for which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement.

 

7. Full Settlement. The Company's obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and except as expressly provided, such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay as incurred (within 30 days following the Company's receipt of an invoice from the Executive), to the full extent permitted by law, all reasonable legal fees and expenses which the Executive or his beneficiaries may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive or his beneficiaries about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code. The preceding sentence shall not apply with respect to any such contest if the court having jurisdiction over such contest determines that the Executive's claim in such contest is frivolous or maintained in bad faith.

 

8. Certain Additional Payments by the Company.

 

(a) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any Payment would be subject to the Excise Tax, then the Executive shall be entitled to receive an additional payment (the "Excise Tax Gross-Up Payment") in an amount such that, after payment by the Executive of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Excise Tax Gross-Up Payment, the Executive retains an amount of the Excise Tax Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this Section 8(a), if it shall be determined that the Executive is entitled to the Excise Tax Gross-Up Payment, but that the Parachute Value of all Payments does not exceed 110% of the Safe Harbor Amount, then no Excise Tax Gross-Up Payment shall be made to the Executive and the amounts payable under this Agreement shall be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The reduction of the amounts payable hereunder, if applicable, shall be made by first reducing the payments under Section 4(aXi), unless an alternative method of reduction is elected by the Executive, and in any event shall be made in such a manner as to maximize the Value of all Payments actually made to the Executive. For purposes of reducing the Payments to the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. If the reduction of the amount payable under this Agreement would not result in a reduction of the Parachute Value of all Payments to the Safe Harbor Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section 8(a). The Company's obligation to make Excise Tax Gross-Up Payments under this Section 8 shall not be conditioned upon the Executive's termination of employment.

 

(b) Subject to the provisions of Section 8(c), all determinations required to be made under this Section 8, including whether and when an Excise Tax Gross-Up Payment is required, the amount of such Excise Tax Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by such nationally recognized accounting firm as may be selected by the Company and reasonably acceptable to the Executive (the "Accounting Finn"); provided, that the Accounting Firm's determination shall be made based upon "substantial authority" within the meaning of Section 6662 of the Code. The Accounting Firm shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment or such earlier time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Excise .Tax Gross-Up Payment, as determined pursuant to this Section 8, shall be paid by the Company to the Executive within five days of the receipt of the Accounting Firm's determination. Any determination by the Accounting Firm shall be binding upon the Company and the Executive, unless the Company obtains an opinion of outside legal counsel, based upon at least "substantial authority" within the meaning of Section 6662 of the Code, reaching a different determination, in which event such l gal opinion shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Excise Tax Gross-Up Payments that will not have been made by the Company should have been made (the "Underpayment"), consistent with the calculations required to be made hereunder. In the event the Company exhausts its remedies pursuant to Section 8(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

 

 

 

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(c) The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Excise Tax Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than IO business days after the Executive is informed in writing of such claim. The Executive shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that the Company desires to contest such claim, the Executive shall:

 

(i) give the Company any information reasonably requested by the Company relating to such claim,

 

(ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

 

(iii) cooperate with the Company in good faith in order effectively to contest such claim, and

 

(iv) permit the Company to participate in any proceedings relating to such claim;

 

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 8(c), the Company shall control all proceedings taken in connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that, if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to such advance or with respect to any imputed income in connection with such advance; and provided, further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be limited to issues with respect to which the Excise Tax Gross Up Payment would be payable hereunder, and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

 

(d) If, after the receipt by the Executive of an Excise Tax Gross-Up Payment or an amount advanced by the Company pursuant to Section 8(c), the Executive becomes entitled to receive any refund with respect to the Excise Tax to which such Excise Tax Gross-Up Payment relates or with respect to such claim, the Executive shall (subject to the Company's complying with the requirements of Section 8(c), if applicable) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 8(c), a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Excise Tax Gross-Up Payment required to be paid.

 

(e) Notwithstanding any other provision of this Section 8, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Executive, all or any portion of any Excise Tax Gross-Up Payment, and the Executive hereby consents to such withholding.

 

(f) Any other liability for unpaid or unwithheld Excise Taxes shall be borne exclusively by the Company, in accordance with Section 3403 of the Code. The foregoing sentence shall not in any manner relieve the Company of any of its obligations under this Employment Agreement.

 

 

 

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(g) Definitions. The following terms shall have the following meanings for poses of this Section 8:

 

(i) "Excise Tax" shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

 

(ii) "Parachute Value" of a Payment shall mean the present value as of the date of the change of control for purposes of Section 2800 of the Code of the portion of such Payment that constitutes a "parachute payment" under Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.

 

(iii) A "Payment" shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(bX2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise.

 

(iv) The "Safe Harbor Amount" shall mean 2.99 times the Executive's "base amount," within the meaning of Section 280G(b)(3) of the Code.

 

(v) "Value" of a Payment shall mean the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code, as determined by the Accounting Firm using the discount rate required by Section 2800(d)(4) of the Code.

 

9. Confidential Information and Non-Solicitation.

 

(a) In no event shall an asserted violation of the provisions of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. However, in recognition of the facts that irreparable injury will result to the Company in the event of a breach by the Executive of his obligations under Sections 9(a) and (b) of this Agreement, that monetary damages for such breach would not be readily calculable, and that the Company would not have an adequate remedy at law therefor, the Executive acknowledges, consents and agrees that in the event of such breach, or the threat thereof, the Company shall be entitled, in addition to any other legal remedies and damages available, to specific performance thereof and to temporary and permanent injunctive relief (without the necessity of posting a bond) to restrain the violation or threatened violation of such obligations by the Executive.

 

(b) The Employee shall, at all times during and subsequent to the Term, keep secret and retain in strictest confidence all confidential matters of the Company, and the "know-how", trade secrets, technical processes, inventions, equipment specifications, equipment designs, plans, drawings, research projects, confidential client lists, details of client, subcontractor or consultant contracts, pricing policies, operational methods, marketing plans and strategies, project development, acquisition and bidding techniques and plans, business acquisition plans, and new personnel acquisition plans of the Company and its subsidiaries and divisions (whether now known or hereafter learned by the Employee), except to the extent that (i) such information is generally available to the public without restriction, (ii) the Employee obtains confidentiality agreements with respect to such confidential information, (iii) the Employee is requested by the Board of Directors of the Company or a Committee thereof: or by the Chairman of the Company, to disclose such confidential information, (iv) such information is provided to a customer of the Company pursuant to a request received from such customer in the ordinary course of business, or (v) the Employee is under compulsion of either a court order or a governmental agency's or authority's inquiry, order or request to so disclose such information.

 

(c) Property of the Company.

 

(i) Except as otherwise provided herein, all lists, records and other non personal documents or papers (and all copies thereof) relating to the Company and/or any of its subsidiaries or divisions, including such items stored in computer memories, on microfiche or by any other means, made or compiled by or on behalf of the Employee, or made available to the Employee, are and shall be the property of the Company, and shall be delivered to the Company on the date of termination of the Employee's employment with the Company, or sooner upon request of the Company at any time or from time to time.

 

(ii) All inventions, including any procedures, formulas, methods, processes, uses, apparatuses, patterns, designs, plans, drawings, devices or configurations of any kind, any and all improvements to them which are developed, discovered, made or produced, and all trade secrets and information used by the Company and/or its subsidiaries and divisions (including, without limitation, any such matters created or developed by the Employee during the term of this

Agreement), shall be the exclusive property of the Company or the subject subsidiary, and shall be delivered to the Company or the subject subsidiary (without the Employee retaining any copies, components or records thereof) on the date of termination of the Employee's employment with the Company; provided, however, that nothing herein contained shall be deemed to grant to the Company any property rights in any inventions or other intellectual property which may at any time be developed by the Employee which is wholly unrelated to any business then engaged in or under development by the Company.

 

 

 

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(d) The Employee shall not, at any time (whether during the term of this Agreement or at any time thereafter), directly or indirectly, for or on behalf of any business enterprise other than the Company and/or its subsidiaries and affiliates, solicit any employee of the Company or any of its subsidiaries to leave his or her employment with the Company or such subsidiary, or encourage any such employee to leave such employment, without the prior written approval of the Company in each instance.

 

(e) Non-Competition. For so long as the Employee shall be receiving any compensation or remuneration under this Agreement, and for a further period of one (1) year thereafter, the Employee shall not, directly or indirectly, whether individually or as an employee, stockholder (other than the passive ownership of up to 5% of the capital stock of a publicly traded corporation), partner, joint venturer, agent or other representative of any other person, firm or corporation, engage or have any interest in any business (other than the Company or any of its subsidiaries or affiliates) which, in any country in which the Company or any of its subsidiaries or divisions does or solicits business during the Term, is engaged in or derives any revenues from performing any functionally equivalent services or marketing any functionally equivalent products as those services provided and products marketed by the Company or any of its subsidiaries or divisions during the Term.

 

(f) Severability of Covenants. The Employee acknowledges and agrees that the provisions of this Section 9 of this Agreement are (a) made in consideration of the premises and undertakings of the Company set forth herein, (b) made for good, valuable and adequate consideration received and to be received by the Employee, and (c) reasonable and necessary, in terms of the time, geographic scope and nature of the restrictions, for the protection of the Company and the business and good will thereof. It is intended that the provisions of this Section 9 be fully severable, and in the event that any of the foregoing restrictions, or any portion of the foregoing restrictions, shall be deemed contrary to law, invalid or unenforceable in any respect by any court or tribunal of competent jurisdiction, then such restrictions shall be deemed to be amended, modified and reduced in scope and effect, as to duration and/or geographic area, only to that extent necessary to render same valid and enforceable (and in such reduced form, such provisions shall then be enforceable), and any other of the foregoing restrictions shall be unaffected and shall remain in full force and effect.

 

(g) Equitable Remedies. The parties hereby acknowledge that, in the event of any breach or threatened breach by the Employee of the provisions of this Section 9, the Company will suffer irreparable harm and will not have an adequate remedy at law. Accordingly, in the event of any such breach or threatened breach, the Company may seek and obtain appropriate equitable relief to restrain or enjoin such breach or threatened breach and/or to compel compliance herewith.

 

(h) Trade Secrets. The Parties hereby agree and stipulate that any confidential information of the Parties shall be deemed a "trade secret" as that term is defined under the Economic Espionage Act of 1996 (the "Act"), and further agree and stipulate that the Parties by this Agreement have taken all reasonable steps under the Act to keep such information secret.

 

10. Successors.

 

(a) This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives.

 

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

11. Payment of Financial Obligations. The payment or provision to the Executive by the Company of any remuneration, benefits or other financial obligations pursuant to this Agreement shall be allocated to the Company and, if applicable, any subsidiary and/or affiliate thereof from time to time.

 

 

 

 10 
 

 

12. Miscellaneous.

 

(a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

 

(b) Arbitration. Except as set forth in Section 9(c) above, any disagreement, dispute, controversy or claim arising out of or relating to this Agreement or the interpretation of this Agreement or any arrangements relating to this Agreement or contemplated in this Agreement or the breach, termination or invalidity thereof shall be settled by final and binding arbitration administered by the America Arbitration Association in Boca Raton, Florida in accordance with the then existing American Arbitration Association Rules and Procedures for Employment Disputes. In the event of such an arbitration proceeding, the Executive and the Company shall select a mutually acceptable neutral arbitrator from among the American Arbitration Association panel of arbitrators. In the event the Executive and the Company cannot agree on an arbitrator, the Administrator of American Arbitration Association will appoint an arbitrator. Neither the Executive nor the Company nor the arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all parties. Except as provided herein, the Federal Arbitration Act shall govern the interpretation, enforcement and all - The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the state of Florida, or federal law, or both, as applicable, and the arbitrator is without jurisdiction to apply any different substantive law. The arbitrator shall have the authority to entertain a motion to dismiss and/or a motion for summary judgment by any party and shall apply the standards governing such motions under the Federal Rules of Civil Procedure. The arbitrator shall render an award and a written, reasoned opinion in support thereof. Judgment upon the award may be entered in any court having jurisdiction thereof.

 

(c) Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested postage prepaid, addressed as follows:

 

If to the Executive: at the Executive's most recent address on the records of the Company,

 

If to the Company: at the Company's principal offices, attention of the Company's Secretary and President.

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective hen actually received by the addressee.

 

(d) Sarbanes-Oxley Act of 2002. Notwithstanding anything herein to the contrary, if the Company determines, in its good faith judgment, that any transfer or deemed transfer of funds hereunder is likely to be construed as a personal loan prohibited by Section 13(k) of the Exchange Act and the rules and regulations promulgated thereunder, then such transfer or deemed transfer shall not be made to the extent necessary or appropriate so as not to violate the Exchange Act and the rules and regulations promulgated thereunder.

 

(e) Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

(f) Withholding. The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. In addition, notwithstanding any other provision of this Agreement, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable trucing authority, for the benefit of the Executive, all or any portion of any Excise Tax Gross-Up Payment, and the Executive hereby consents to such withholding.

 

(g) No Waiver. The Executive's or the Company's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 3(c) of this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

 

 

 

 11 
 

 

(h) Entire Agreement. As of the Effective Date, this Agreement, together with any non-competition agreement between the parties, constitutes the final, complete and exclusive agreement between the Executive and the Company with respect to the subject matter hereof and replaces and supersedes any and all other agreements, offers or promises, whether oral or written, made to you by any related entity, or representative of the Company or the transactions related thereto. The Executive agrees that any such agreement, offer or promise between the Executive and Employer (or any representative thereof) is hereby terminated and will be of no further force or effect, and the Executive acknowledges and agrees that upon his execution of this Agreement, he will have no right or interest in or with respect to any such agreement, offer or promise. In the event that the Effective Date does not occur, this Agreement (including, without limitation, the immediately preceding sentence) shall have no force or effect.

 

(i) Counterparts. This Agreement may be executed simultaneously in two counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and, pursuant to the authoriz.ation from the Board, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year written below.

 

 

Smart Decision, Inc.

A Wyoming Corporation

 

 

By: /s/ Adam Green                        

Name: Adam Green

Title: President

 

 

EXECUTIVE

 

/s/ Eric Gutmann                              

Eric Gutmann

 

EFFECTIVE DATE:

 

Dated: February 16, 2018

 

 

 

 

 

 

 

 

 

 12 
 

 

EXHIBIT A

 

GENERAL RELEASE

 

For a valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the "Releasees" hereunder, consisting of Smart Decision, Inc., a Wyoming corporation, and each of their partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys' fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called "Claims"), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof. The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasee's right to terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act, and the Florida Fair Employment and Housing Act.

 

THE UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF RELEVANT LAW, WHICH PROVIDES GENERALLY AS FOLLOWS:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

 

THE UNDERSIGNED, BEING AWARE OF SAID LAW, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

(A) HE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

 

(B) HE HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

 

(C) HE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

 

 

 

 

 

 13 
 

 

The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which he may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys' fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer. It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity.

 

The undersigned agrees that if he hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys' fees incurred by Releasees in defending or otherwise responding to said suit or Claim.

 

The undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned.

 

IN WITNESS WHEREOF, the undersigned has executed this Release this 16th day of February, 2018

 

 

/s/ Eric Gutmann

 

 

 

 

 

 

 

 

 

 

 14 

 

 

EX1A-11 CONSENT 8 smart_1a-ex1102.htm CONSENT

Exhibit 11.2

 

Consent of Independent Registered Public Accounting Firm

 

We hereby consent to the use of our report dated March 19, 2018, on the financial statements of Smart Decision, Inc. as of December 31, 2017 and for the period from September 5, 2017 (inception) to December 31, 2017 included herein on the Regulation A Offering Circular of Smart Decision, Inc. on Form 1-A and to the reference to our firm under the heading “Experts”.

 

 

/s/ Salberg & Company, P.A.

 

SALBERG & COMPANY, P.A.

Boca Raton, Florida

March 23, 2018

EX1A-12 OPN CNSL 9 smart_1a-ex1201.htm OPINION OF COUNSEL

Exhibit 12.1

 

 

John E. Lux, Esq.
Attorney at Law
1629 K Street, Suite 300
Washington, DC 20006
(202) 780-1000
Admitted in Maryland and the District of Columbia

 

May 1, 2018

 

Board of Directors

Smart Decision, Inc.

1825 Corporate Blvd. NW, Suite 110

Boca Raton, FL 33431

 

 

Gentlemen:

 

I have acted, at your request, as special counsel to Smart Decision, a Wyoming corporation, (“Smart Decision”) for the purpose of rendering an opinion as to the legality of (1) 500,000,000 shares of Smart Decision' common stock, par value $0.0001 per share to be offered and distributed by Smart Decision (the “Shares”), and (2) 27,500,000 shares of Smart Decision common stock, par value $0.0001 per share to be offered by selling shareholders, pursuant to an Offering Statement to be filed under Regulation A of the Securities Act of 1933, as amended, by Smart Decision with the U.S. Securities and Exchange Commission (the "SEC") on Form 1-A, for the purpose of registering the offer and sale of the Shares (“Offering Statement”).

 

For the purpose of rendering my opinion herein, I have reviewed statutes of the State of Wyoming, to the extent I deem relevant to the matter opined upon herein, certified or purported true copies of the Articles of Incorporation of Smart Decision and all amendments thereto, the By-Laws of Smart Decision, selected proceedings of the board of directors of Smart Decision authorizing the issuance of the Shares, certificates of officers of Smart Decision and of public officials, and such other documents of Smart Decision and of public officials as I have deemed necessary and relevant to the matter opined upon herein. I have assumed, with respect to persons other than directors and officers of Smart Decision, the due and proper election or appointment of all persons signing and purporting to sign the documents in their respective capacities, as stated therein, the genuineness of all signatures, the conformity to authentic original documents of the copies of all such documents submitted to me as certified, conformed and photocopied, including the quoted, extracted, excerpted and reprocessed text of such documents.

 

Based upon the review described above, it is my opinion that the Shares are duly authorized and when, as and if issued and delivered by Smart Decision against payment therefore, as described in the offering statement, will be validly issued, fully paid and non-assessable.

 

I have not been engaged to examine, nor have I examined, the Offering Statement for the purpose of determining the accuracy or completeness of the information included therein or the compliance and conformity thereof with the rules and regulations of the SEC or the requirements of Form 1-A, and I express no opinion with respect thereto. My forgoing opinion is strictly limited to matters of Wyoming corporation law; and, I do not express an opinion on the federal law of the United States of America or the law of any state or jurisdiction therein other than Wyoming, as specified herein.

 

I hereby consent to the filing of this opinion as Exhibit 12.1 to the Offering Statement and to the reference to our firm under the caption “Legal Matters” in the Offering Circular constituting a part of the Offering Statement. We assume no obligation to update or supplement any of the opinion set forth herein to reflect any changes of law or fact that may occur following the date hereof.

 

Very truly yours,

 

/s/ John E. Lux

 

John E. Lux

EX1A-15 ADD EXHB 10 smart_1a-ex9901.htm PATENT

Exhibit 99.1

 

 

 

United States Patent 8,829,773
   
Green , et al. September 9, 2014

 

Lighting apparatus with light-emitting diode chips and remote phosphor layer

 

Abstract

 

A lighting apparatus with light-emitting diode chips and a remote phosphor layer includes a plurality of LED chips, a cover, a heat sink, a first end cap, a second end cap, at least one PCB, and a LED driver. The plurality of LED chips is positioned on the at least one PCB and electronically connected with the LED driver. The LED driver is electrically connected with male contacts which traverse through the first end cap and the second end cap. The at least one PCB is enclosed with the cover, the heat sink, the first end cap, and the second end cap. The blue light and ultraviolet light from the plurality of LED chips coverts into white or yellow light from a phosphor layer of the cover, where the phosphor layer is remotely positioned from the plurality of LED chips.

 

 

 

Inventors: Green; Adam; (Boca Raton, FL) ; Gutmann; Eric; (Boca Raton, FL)

 

Applicant: Name City State Country Type
       
  Green; Adam Boca Raton FL US
  Gutmann; Eric Boca Raton FL US

 

Assignee: LED Technology Group LLC (Boca Raton, FL)

Family ID: 49042442

Appl. No.: 13/785,827

Filed: March 5, 2013

 

 

 

 

Prior Publication Data 

 

 

Document Identifier Publication Date
US 20130229104 A1 Sep 5, 2013

 

 

 

 1 
 

 

 

 

Related U.S. Patent Documents 

 

 

 

Application Number Filing Date Patent Number Issue Date
61606716 Mar 5, 2012    

 

Current U.S. Class: 313/46: 313/11
Current CPC Class:

F21V 29/22 (20130101); F21V 29/70 (20150115); F21K 9/64 (20160801);

 

F21K 9/27 (20160801); F21Y 2103/37 (20160801); F21V

 

3/12 (20180201); F21Y 2103/33 (20160801); F21Y 2115/10 (20160801)

Current International Class:

H01J 1/02 (20060101); H01J 7/24 (20060101)

 

 

References Cited [Referenced By]

 

 

U.S. Patent Documents

6853151 February 2005 Leong et al.
8143769 March 2012 Li
2010/0060130 March 2010 Li
2011/0089830 April 2011 Pickard et al.
2012/0001538 January 2012 Kim
2012/0217861 August 2012 Soni

 

Primary Examiner: Walford; Natalie

 

 

Parent Case Text

 

 

The current application claims a priority to the U.S. Provisional Patent application Ser. No. 61/606,716 filed on Mar. 5, 2012.

 

 

Claims

 

 

 

What is claimed is:

 

1.  A lighting apparatus with light-emitting diode chips and a remote phosphor layer: a plurality of light- emitting diode (LED) chips, a cover; a heat sink; an insulating volume; a first end cap; a second end cap; at least one printed circuit board (PCB); a light-emitting diode (LED) driver; the cover comprises a phosphor layer; the first end cap comprises at least one first male electrical contact; the second end cap comprises at least one second male electrical contact; the insulating volume being positioned in between the plurality of LED chips and phosphor layer; the phosphor layer being adjacently positioned with the cover; the heat sink being positioned atop the cover; the heat sink being connected along the cover; the first end cap and the second end cap being connected to the heat sink and the cover; the first end cap being oppositely positioned from the second end cap along the cover and the heat sink; the at least one first male electrical contact being traversed through the first end cap; the at least one second male electrical contact being traversed through the second end cap; the at least one PCB being positioned in between the at least one first male electrical contact and the at least one second male electrical contact; the plurality of LED chips being blue LED chips, wherein the blue LED chips emit light wavelength range from 450 nanometers to 495 nanometers; the plurality of LED chips being positioned on the at least one PCB; the plurality of LED chips being faced toward the phosphor layer; the plurality of LED chips being electronically connected with the LED driver by the at least one PCB; the LED driver being adjacently positioned on the at least one PCB; the LED driver being electrically connected with the at least one first male electrical contact; and the LED driver being positioned in between the at least one first male electrical contact and the at least one second male electrical contact.

 

 

 

 2 
 

 

2.  The lighting apparatus with light-emitting diode chips and a remote phosphor layer as claimed in claim 1 comprises: the at least one first male electrical contact comprises a first contact and a second contact; and the first contact and the second contact being electrically connected with the LED driver, wherein the third contact and the fourth contact of the at least one second male electrical contact provide structural support to the cover and heat sink.

 

3.  A lighting apparatus with light-emitting diode chips and a remote phosphor layer: a plurality of light- emitting diode (LED) chips, a cover; a heat sink; an insulating volume; a first end cap; a second end cap; at least one printed circuit board (PCB); a light-emitting diode (LED) driver; the cover comprises a phosphor layer; the first end cap comprises at least one first male electrical contact; the second end cap comprises at least one second male electrical contact; the phosphor layer being adjacently positioned with the cover; the heat sink being adjacently positioned along the cover; the first end cap and the second end cap being connected to the cover; the first end cap being oppositely positioned from the second end cap along the cover; the at least one first male electrical contact being traversed through the first end cap; the at least one second male electrical contact being traversed through the second end cap; the at least one PCB being positioned in between the at least one first male electrical contact and the at least one second male electrical contact; the plurality of LED chips being positioned on the at least one PCB; the plurality of LED chips being faced toward the phosphor layer; the plurality of LED chips being electronically connected with the LED driver by the at least one PCB; the LED driver being adjacently positioned on the at least one PCB; the LED driver being electrically connected with the at least one first male electrical contact and the at least one second male electrical contact; the LED driver being positioned in between the at least one first male electrical contact and the at least one second male electrical contact; and the plurality of LED chips being ultraviolet LED chips, wherein the ultraviolet LED chips emit light wavelength range from 10 nanometers to 400 nanometers.

 

4.  The lighting apparatus with light-emitting diode chips and a remote phosphor layer as claimed in claim 3 comprises: the heat sink being externally positioned with the cover opposite from the phosphor layer.

 

5.  The lighting apparatus with light-emitting diode chips and a remote phosphor layer as claimed in claim 3 comprises: the heat sink being internally positioned within the cover; and the heat sink being adjacently positioned with the phosphor layer.

 

6.  The lighting apparatus with light-emitting diode chips and a remote phosphor layer as claimed in claim 3 comprises: the at least one first male electrical contact comprises a first contact and a second contact; the at least one second male electrical contact comprises a third contact and a fourth contact; and the first contact and the third contact being electrically connected with the LED driver, wherein the second contact and the fourth contact provide structural support to the cover and heat sink.

 

7.  A lighting apparatus with light-emitting diode chips and a remote phosphor layer: a plurality of light- emitting diode (LED) chips, a cover; a heat sink; an insulating volume; a first end cap; a second end cap; at least one printed circuit board (PCB); a light-emitting diode (LED) driver; the cover comprises a phosphor layer; the first end cap comprises at least one first male electrical contact; the second end cap comprises at least one second male electrical contact; the insulating volume being positioned in between the plurality of LED chips and phosphor layer.

 

8.  The lighting apparatus with light-emitting diode chips and a remote phosphor layer as claimed in claim 7 comprises: the plurality of LED chips being positioned on the at least one PCB; the plurality of LED chips being faced toward the phosphor layer; the plurality of LED chips being electronically connected with the at least one first male electrical contact and the at least one second male electrical contact by the at least one PCB; the at least one first male electrical contact and the at least one second male electrical contact being electrically connected with the LED driver; the LED driver being externally positioned with the at least one first male electrical contact; the at least one first male electrical contact comprises a first contact and a second contact; the at least one second male electrical contact comprises a third contact and a fourth contact; and the first contact and the third contact being electrically connected with the LED driver, wherein the second contact and the fourth contact provide structural support to the cover and heat sink.

 

9.  The lighting apparatus with light-emitting diode chips and a remote phosphor layer as claimed in claim 7 comprises: the plurality of LED chips being positioned on the at least one PCB; the plurality of LED chips being faced toward the phosphor layer; the plurality of LED chips being electronically connected with the at least one first male electrical contact by the at least one PCB; the at least one first male electrical contact being electrically connected with the LED driver; the LED driver being externally positioned with the at least one first male electrical contact; the at least one first male electrical contact comprises a first contact and a second contact; and the first contact and the second contact being electrically connected with the LED driver, wherein the third contact and the fourth contact of the at least one second male electrical contact provide structural support to the cover and heat sink.

 

 

 

 3 
 

 

 

Description

 

 

FIELD OF THE INVENTION

 

The present invention relates generally to a lighting apparatus with light-emitting diodes. More specifically, the present invention is an apparatus that coverts blue light-emitting diode light; or any color thereof, into white or yellow light through a remote phosphor layer.

 

BACKGROUND OF THE INVENTION

 

The traditional light-emitting diode (LED) lamps comprise many individual LED bulbs which emit yellow of white color with a usual color temperature range of 2200 Kelvin (K) to 7500 K. Each of the LED diodes is encapsulated with phosphor slurry or phosphor die package which interacts with the diode or the chip of the each of the LED lamp to achieve the desired color temperature range needed. The inherent problem with this method is the thermal energy created by the LED lamps. In order for the LED lamps to efficiently function, the LED lamps have to operate in a stable temperature environment. As the thermal energy increases within the LED lamps, the phosphor slurry or the phosphor die package begins color shifting within each of the LED diodes. As LED lamp manufacturers try to cut costs, they have been skimping on the level of attention and costs needed to insure that the junction temperature and thermal properties within the LED lamps remain consistent for the many years it should last. Because of these problems, many projects completed with significant amount of white or yellow color shift over time. LED lamps have color variations within those projects even though the LED lamps are manufactured at the same time.

 

It is therefore an object of the present invention to provide an apparatus that provides constant white or yellow light without any color shift or color variation. The present invention remotely positions the phosphor layer from the high power LED diodes, blue LED diodes or ultraviolet LED diodes, to create white or yellow light, and a heat sink of the present invention removes the thermal energy created by the high powered LED diodes in order to improve efficiency and reliability.

 

BRIEF DESCRIPTION OF THE DRAWINGS

 

FIG. 1 is a perspective view of a preferred embodiment of the present invention.

 

FIG. 2 is a perspective view of the preferred embodiment of the present invention without a heat sink, showing a light-emitting diode (LED) driver and a back side of at least one printed circuit board (PCB).

 

FIG. 3 is a perspective view of the preferred embodiment of the present invention without a cover, showing a plurality of the array of light-emitting diode (LED) chips.

 

FIG. 4 is a side view of the preferred embodiment of the present invention, showing the plane upon which a cross sectional view is taken shown in FIG. 5.

 

FIG. 5 is a cross section view of the preferred embodiment of the present invention taken along line A-A of FIG. 4.

 

FIG. 6 is a side view of the preferred embodiment of the present invention without a first end cap and a second end cap.

 

FIG. 7 is a perspective view of an alternative embodiment of the present invention without the first end cap, wherein the heat sink is externally positioned with the cover.

 

FIG. 8 is a side view of the alternative embodiment of the present invention without the first end cap and the second end cap, wherein the heat sink is externally positioned with the cover.

 

 

 

 4 
 

 

FIG. 9 is a perspective view of the alternative embodiment of the present invention without the first end cap, wherein the heat sink is internally positioned with the cover.

 

FIG. 10 is a side view of the alternative embodiment of the present invention without the first end cap and the second end cap, wherein the heat sink is internally positioned with the cover.

 

FIG. 11 is a block diagram showing blue LED chips and ultraviolet LED chips.

 

FIG. 12 is a schematic illustrating the basic electrical connection of a first contact and a second contact of the present invention, wherein the LED driver is positioned within the first end cap and the second end cap.

 

FIG. 13 is a schematic illustrating the basic electrical connection of the first contact and a third contact of the present invention, wherein the LED driver is positioned outside of the first end cap.

 

FIG. 14 is a schematic illustrating the basic electrical connection of a first contact and a second contact of the present invention, wherein the LED driver is externally positioned with the first end cap.

 

FIG. 15 is a schematic illustrating the basic electrical connection of the first contact and a third contact of the present invention, wherein the LED driver is externally positioned with the first end cap.

 

FIG. 16 is an alternative embodiment of the present invention. FIG. 17 is another alternative embodiment of the present invention.

 

DETAIL DESCRIPTIONS OF THE INVENTION

 

All illustrations of the drawings are for the purpose of describing selected versions of the present invention and are not intended to limit the scope of the present invention.

 

In reference to FIG. 1, FIG. 2, and FIG. 3, the present invention is a lighting apparatus which converts an array of blue light-emitting diodes light or ultraviolet light-emitting diode light into white or yellow color. The color temperate of the white or yellow color in the present invention can range from 2200 Kelvin (K) to 7500K. The present invention comprises a plurality light-emitting diode (LED) chips 1, a cover 2, a heat sink 4, a first end cap 6, a second end cap 7, at least one printed circuit board (PCB) 8, an insulating volume 5, and a light-emitting diode (LED) driver 9. The present invention can be a single assembly of the at least one PCB 8 or a plurality of PCB 8, where the number of the at least one PCB 8 depends on the amount of light emitted by the present invention. Even though the present invention is described with at least one PCB 8, alternative embodiments of the present invention can comprise a plurality of PCBs 8.

 

The cover 2 comprises a phosphor layer 3, and the phosphor layer 3 can be any shade of white or yellow phosphor and creates the color temperature range of 2200K to 7500K. The phosphor layer 3 is adjacently positioned with the cover 2, where the cover 2 provides protection for the phosphor layer 3. The cover 2 can be, but not limited to, a clear cover, a frosted cover (also known as milky), semi-frosted cover and diffuser cover. The cover 2 can be formed into any geometric or organic shapes including, but not limited to, circular, oval, triangular, rectangular, U-shaped, V-shaped and trapezoidal. The cover 2 is made from high strength and transparent materials such as plastic, glass, and composite materials. In reference to FIG. 5 and FIG. 6, the cover 2 is adjacently positioned with the heat sink 4, and the heat sink 4 is adjacently connected to the cover 2 with any type connection mechanisms.

 

The heat sink 4 increases the efficiency of the present invention and the service life of the present invention as the heat sink 4 dissipates the generated thermal energy of the present invention. The heat sink 4 can be formed into any geometric or organic shapes including, but not limited to circular, oval, triangular, rectangular, U-shaped, V-shaped, and trapezoidal. The heat sink 4 is made of high strength and high thermal conductivity materials such as, aluminum alloys, copper, and composite materials.

 

 

 

 5 
 

 

In reference to FIG. 3 and FIG. 4, the first end cap 6 comprises at least one first male electrical contact 61 which traverses through the first end cap 6. Similarly the second end cap 7 comprises at least one second male electrical contact 71 which traverses through the second end cap 7. The first end cap 6 and the second end cap 7 are oppositely positioned from each other along the cover 2 and the heat sink 4, and connected with both the cover 2 and the heat sink 4 or the cover 2 at each extremity. Depending on different embodiments of the present invention, the at least one first male electrical contact 61 and the at least one second male electrical contact 71 provide the incoming voltage and current and/or structural connection to the present invention as the at least one first male electrical contact 61 and the at least one second male electrical contact 71 electrically and structurally connect the present invention with a supporting structure.

 

The shape of the cover 2 and the shape of the heat sink 4 determine the shape of the first end cap 6 and the second end cap 7. For example, if the cover 2 is shaped into a V-shape and the heat sink 4 is shaped into a flat shape, the first end cap 6 and the second end cap 7 are shaped into a triangular shape so that the first end cap 6 and the second end cap 7 can be connected to both the cover 2 and the heat sink 4 or the cover 2. The first end cap 6 and the second end cap 7 can be made from, but not limited to, aluminum alloys, plastic, and composite materials. The positioning of the cover 2 and the heat sink 4 determine a lighting area of the present invention, where the lighting area can range from 10 to 360 degrees. For example, if the lighting area is 270 degrees through the cover 2, the heat sink 4 blocks 90 degrees of the lighting area. The connections between the cover 2 and the heat sink 4 or the cover 2, the first end cap 6, and the second end cap 7 provide an enclosure for the rest of the components of the present invention allowing protection for those components. The enclosure of the present invention can also be a combination of the cover 2 and the heat sink 4, as the first end cap 6 and the second end cap 7 may be eliminated from the present invention. if the first end cap 6 and the second end cap 7 is be eliminated from the present invention, the at least one first male electrical contact 61 and the at least one second male electrical contact 71 traverse through either the cover 2 or the heat sink 4.

 

The plurality of LED chips 1 is positioned on the at least one PCB 8 and electronically connected to the at least one PCB 8. In reference to FIG. 11, the present invention uses either blue LED chips 11 or ultraviolet LED chips 12 as the plurality of LED chips 1. The present invention is able to use any shade of the blue LED chips, where the blue LED chips emit light wavelength range from 450 nanometers to 495 nanometers. For example, the blue LED chips can emit any shades of blue color, where the shades of blue color can include, but not limited to, blue, navy blue, royal blue, powder blue, azure, and sky blue. The present invention is also able to use the ultraviolet LED chips, where the ultraviolet LED chips emit light wavelength range from 10 nanometers to 400 nanometers. The plurality of LED chips 1 used within the present invention can be packaged or unpackaged plurality of LED chips 1.

 

The at least one PCB 8 is used to connect each of the plurality of LED chips 1 so that each the plurality of LED chips 1 can be efficiently and systematically arranged within the present invention. Even though the at least one PCB 8 is used within the present invention, any other type of conductive rigid or flexible pathways, such as wire wrap and point-to point construction, can be incorporated to electronically connect each of the plurality of LED chips 1. The positioning of the plurality of LED chips 1 determines the lighting area of the present invention since the plurality of LED chips 1 provides a directional lighting effect. For example, when the lighting area is 360 degrees, the positioning of the plurality of LED chips 1 is angularly arranged adjacent to the heat sink 4, where the physical size of the heat sink 4 is much smaller than the cover 2, so that the directional light can bypass the heat sink 4. The at least one PCB 8 is positioned in between the at least one first male electrical contact 61 and the at least one second male electrical contact 71, where the plurality of LED chips 1 is faced toward the phosphor layer 3, and back side of the plurality of LED chips 1 is faced toward the heat sink 4.

 

The LED driver 9 is an integrated circuit which converts alternating current (AC) to direct current. The LED driver 9 also manages the incoming voltage and current of the present invention to the voltage and current level requirements of the plurality of LED chips 1. The LED driver 9 can be internally or externally positioned with the present invention.

 

The insulating volume 5, which is the spaced between the plurality of LED chips 1 and the phosphor layer 3, is able to dissolve the thermal energy created by the plurality of LED chips 1. The insulation volume 5 of the present invention is preferably 1/8 to 2 inches in between the plurality of LED chips 1 and the phosphor layer 3. Since the phosphor layer 3 is remotely positioned from the plurality of LED chips 1, the thermal energy created from the plurality of LED chips 1 can be removed from the insulating volume 5 through the heat sink 4 without damaging the phosphor layer 3.

 

 

 

 6 
 

 

In reference to FIG. 6, the preferred embodiment, the cover 2 comprises a semicircular shape, and the heat sink 4 also comprises a semicircular shape. Even though the cover 2 and the heat sink 4 of the preferred embodiment comprise the semicircular shapes, the cover 2 and the heat sink 4 of the present invention are not limited to the semicircular shape and can be any other geometric shapes or organic shapes. The heat sink 4 is positioned atop the cover 2 and securely connected to the cover 2 with the connection mechanisms, where the connection mechanisms includes, but not limited to, adhesive strips, glue, and connecting rails. When the heat sink 4 is positioned atop the cover 2, the phosphor layer 3 that is positioned on the cover 2 also gets protected from the heat sink 4. In reference to FIG. 5, the first end cap 6 and the second end cap 7 are oppositely positioned from each other along the cover 2 and the heat sink 4, and connected to the cover 2 and the heat sink 4 at each extremity. Even though the preferred embodiment uses G13 style end caps as the first end cap 6 and the second end cap 7, any other type of end cap can be used within the preferred embodiment where the shape of the cover 2 and the heat sink 4 determine the shape of the first end cap 6 and the second end cap 7. For example, if the cover 2 is shaped into an open U-shape and the heat sink 4 is shaped into a flat shape, the first end cap 6 and the second end cap 7 are shaped into a closed U-shape so that the first end cap 6 and the second end cap 7 can be simultaneously connected with the cover 2 and the heat sink 4. The connections between the cover 2, the heat sink 4, the first end cap 6, and the second end cap 7 provide the enclosure for the rest of the components of the preferred embodiment allowing protection for those components. In the preferred embodiment, the LED driver 9 can be internally positioned in between the cover 2, the heat sink 4, the at least one first male electrical contact 61, and the at least one second male electrical contact 71, where the LED driver 9 is preferably positioned on the at least one PCB 8 and adjacent with the heat sink 4. The LED driver can also be externally positioned as a separate electrical component with the at least one first male electrical contact 61.

 

In reference to FIG. 7 and FIG. 9, an alternative embodiment, the cover 2 comprises a circular shape, and the heat sink 4 comprises a semicircular shape where the heat sink 4 is adjacently positioned with the cover 2. Even though the cover 2 of the alternative embodiment comprises the circular shape, the cover 2 of the present invention is not limited to the circular shape and can be any other closed geometric shapes or organic shapes. Similar to the cover 2 of the alternative embodiment, even though the heat sink 4 of the alternative embodiment comprises the semicircular shape, the heat sink 4 of the present invention is not limited to the semicircular shape and can be any other geometric shapes or organic shapes. In the alternative embodiment, the heat sink 4 is either internally or externally positioned with the cover 2. In reference to FIG. 8, the cover 2 of the alternative embodiment comprises the circular shape which is a closed geometric shape, and the semicircular shape heat sink 4 is externally positioned atop the cover 2, where the heat sink 4 is oppositely positioned from the phosphor layer 3. In reference to FIG. 10, the cover 2 of the alternative embodiment comprises the same circular shape, but the semicircular shape heat sink 4 is positioned within the cover 2, where the heat sink 4 is adjacently positioned with the phosphor layer 3. The heat sink 4 is connected to the cover 2 with the connection mechanisms, where the connection mechanisms can be, but not limited to, adhesive strips, glue, and connecting rails. The first end cap 6 and the second end cap 7 are oppositely positioned from each other along the cover 2, and connected to the cover 2 at each extremity. Even though the alternative embodiment uses G13 style end caps, any other type of end cap can be used within the alternative embodiment as the shape of the first end cap 6 and the second end cap 7 is determined by the shape of the cover 2. For example, if the cover 2 is shaped into a rectangular shape, the first end cap 6 and the second end cap 7 are also shaped into rectangular shapes so that the first end cap 6 and the second end cap 7 can be connected to the cover 2. The connections between the cover 2, the first end cap 6, and the second end cap 7 provide the enclosure for the rest of the components of the alternative embodiment allowing protection for those components while the heat sink 4 is internally or externally positioned with the enclosure. In the alternative embodiment, the LED driver 9 can be internally positioned in between the cover 2, the heat sink 4, the at least one first male electrical contact 61, and the at least one second male electrical contact 71, where the LED driver 9 is preferably positioned on the at least one PCB 8 and adjacent with the heat sink 4. The LED driver can also be externally positioned as a separate electrical component with the at least one first male electrical contact 61.

 

In reference to FIG. 12 and FIG. 13, when the LED driver 9 is internally positioned in between the at least one first male electrical contact 61 and the at least one second male electrical contact 71, the LED driver 9 is electronically connects with the plurality of LED chips 1 by the at least one PCB 8. The LED driver 9 also electrically connected with the supporting structure through the at least one first male electrical contact 61 and the at least one second male electrical contact 71 or through the at least one first male electrical contact 61, where the at least one first male electrical contact 61 comprises a first contact 611 and a second contact 612, and the at least one second male electrical contact 71 comprises a third contact 711 and a fourth contact 712. When the LED driver 9 is electrically connected through the at least one first male electrical contact 61, the first contact 611 and the second contact 612 electrically connect with the LED driver 9. Then the first contact 611 and the second contact 612 provide the incoming voltage and current of the present invention so that the plurality of LED chips 1 can be illuminated while the third contact 613 and the fourth contact 614 function as the structural support to the present invention so that the present invention can be secured with the supporting structure. When the LED driver 9 is electrically connected through the at least one first male electrical contact 61 and the at least one second male electrical contact 71, the first contact 611 and the third contact 711 electrically connect with the LED driver 9. Then the first contact 611 and the third contact 711 provide the incoming voltage and current of the present invention so that the plurality of LED chips 1 can be illuminated while the second contact 612 and the fourth contact 712 function as the structural support to the present invention so that the present invention can be secured with the supporting structure.

 

 

 

 7 
 

 

In reference to FIG. 14 and FIG. 15, when the LED driver 9 is externally positioned with the at least one first male electrical contact 61, the plurality of LED chips 1 electronically connects with the at least one PCB 8. The at least one PCB 8 is electrically connected with the least one first male electrical contact 61 and the at least one second male electrical contact 71 or with the at least one first male electrical contact 61, where the at least one first male electrical contact 61 comprises a first contact 611 and a second contact 612, and the at least one second male electrical contact 71 comprises a third contact 711 and a fourth contact 712. When the LED driver 9 is externally positioned and electrically connected with the at least one first male electrical contact 61, the first contact 611 and the second contact 612 electrically connect with the LED driver 9. Then the first contact 611 and the second contact 612 provide the incoming voltage and current of the present invention so that the plurality of LED chips 1 can be illuminated while the third contact 613 and the fourth contact 614 function as the structural support to the present invention so that the present invention can be secured with the supporting structure. When the LED driver 9 is externally positioned and electrically connected with the at least one first male electrical contact 61 and the at least one second male electrical contact 71, the first contact 611 and the third contact 711 electrically connect with the LED driver 9. Then the first contact 611 and the third contact 711 provide the incoming voltage and current of the present invention so that the plurality of LED chips 1 can be illuminated while the second contact 612 and the fourth contact 712 function as the structural support to the present invention so that the present invention can be secured with the supporting structure.

 

When the blue LED chips 11 of the plurality of LED chips 1 is power by the direct current, the blue LED chips 11 starts off with blue color, and the blue color then excites the phosphor layer 3 which converts the blue color into white or yellow color. When the ultraviolet LED chips 12 of the plurality of LED chips 1 is power by the direct current, the ultraviolet LED chips 12 also excites the phosphor layer 3 which produces white or yellow color. Since the color change from blue/ultraviolet to yellow or white takes place within the phosphor layer 3 of the cover 2, different color temperatures can be obtained by replacing cover 2. Since the phosphor layer 3 is remotely positioned from the plurality of LED chips 1, constant white or yellow color is emitted from the present invention throughout the service life of the present invention without any color shift. Since each of the plurality of LED chips 1 is not individually combined with the phosphor layer 3, and the plurality of LED chips 1 is combined with the phosphor layer 3 as a single group, color variation within each of the plurality of LED chips 1 does not take place within the present invention.

 

The present invention can be used within any sized light emitting diode lamp formats including, but not limited to, T4, T5, T6, T8, T10, T12, TS, and TB. Even though the overall shape of the present invention describes within a linear tube shape, with reference to FIG. 16 and FIG. 17, the present invention can include, but not limited to, circular shape, U-shape, V-shape, and any other geometric and organic shapes. The present invention operates as retrofit and energy efficient alternative to florescent lamps, where minor modifications may or may not have to be done within a supporting structure of the florescent lamp so that the present invention can be functional within the supporting structure.

 

Although the invention has been explained in relation to its preferred embodiment, it is to be understood that many other possible modifications and variations can be made without departing from the spirit and scope of the invention as hereinafter claimed.

 

 

* * * * *

 

 

 8 

 

EX1A-15 ADD EXHB 11 smart_1a-ex9902.htm PATENT APPLICATION

Exhibit 99.2

 

 

 

United States Patent Application 20160078519
Kind Code A1
Green; Adam ; et al. March 17, 2016

 

Method for an LED Product Filtering Engine

 

Abstract

 

A user-friendly method for filtering LED products in order to identify a matching design ideal for a specific lighting application described by a user. The method includes first displaying a plurality of filter question, each associated with a plurality of answers. Next, a desired answer is received from a user account and is used to update an aggregate set of desired specifications with an at least one technical specification. The aggregate set of desired specifications is then compared against each of a plurality of LED designs in order to identify an at least one matching LED design. The aforementioned process is repeated as a plurality of iterations, with each iteration being associated with a filter question. Resultantly, the matching LED design of a last iteration is graphically displayed through a user computing device.

 

 

 

Inventors: Green; Adam; (Boca Raton, FL) ; Gutmann; Eric; (Boca Raton, FL)

 

Applicant: Name City State Country Type

 

Green; Adam Boca Raton FL US

Gutmann; Eric Boca Raton FL US

 

Family ID: 55455153

Appl. No.: 14/854692

Filed: September 15, 2015

 

 

 

Related U.S. Patent Documents

 

 

 

 

Application Number Filing Date Patent Number
62050559 Sep 15, 2014  

 

Current U.S. Class: 705/26.63
Current CPC Class:

G06Q 30/0627 20130101; G06Q 30/0643 20130101

International Class:

G06Q 30/06 20060101 G06Q030/06

 

 

 

 

 

 1 
 

 

Claims

 

 

1.  A method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method comprises the steps of: (A) providing a plurality of light-emitting diode (LED) designs, an aggregate set of desired specifications, a plurality of filter questions, a user computing device, and an external server, wherein each of the plurality of filter questions is associated with a plurality of answers; (B) graphically displaying a specific question from the plurality of filter questions through the user computing device, wherein each of the plurality of answers is associated with an at least one technical specification; (C) prompting a user account to select a desired answer from the plurality of answers for the specific question through the user computing device; (D) updating the aggregate set of desired specifications with the at least one technical specification associated with the desired answer; (E) sending the aggregate set of desired specifications from the user computing device to the external server; (F) comparing the aggregate set of desired specifications against each of the plurality of LED designs with the external server in order to identify an at least one matching LED design from the plurality of LED designs; (G) sending the at least one matching LED design from the external server to the user computing device; (H) executing steps (B) through (G) as a plurality of iterations, wherein each of the plurality of filter questions is associated with a specific iteration from the plurality of iterations; and (I) graphically displaying the at least one matching LED design of a last iteration from the plurality of iteration through the user computing device.

 

2.  The method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method as claimed in 1 comprises the steps of: graphically displaying the at least one matching LED design associated with the specific iteration from the plurality of iterations by the user computing device after step (G).

 

3.  The method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method as claimed in 1 comprises the steps of: providing a plurality of design categories, wherein each of the plurality of design categories is associated with a set of corresponding LED designs within the plurality of LED designs; displaying the plurality of design categories prior to step (B) through the user computing device; prompting the user account to select a specific category from the plurality of design categories prior to step (B) through the user computing device; and comparing the aggregate set of desired specifications against each design within the set of corresponding LED designs for the specific category during step (F).

 

4.  The method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method as claimed in 1 comprises the steps of: providing a plurality of product categories, wherein each of the plurality of design categories is associated with a set of corresponding questions within the plurality of filter questions; graphically displaying the plurality of design categories prior to step (B) through the user computing device; prompting the user account to select a specific category from the plurality of design categories prior to step (B) through the user computing device; graphically displaying a specific question from the set of corresponding questions associated with the specific category from the plurality of categories during step (B) through the user computer device; and repeating steps (B) through (E) for each of the set of corresponding questions for the specific category from the plurality of design categories during step (H).

 

5.  The method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method as claimed in 1 comprises the steps of: providing a plurality of geospatial product locations for the at least one matching LED design; identifying a current location of the user computing device; comparing the current location to each of the plurality of geospatial product locations in order to identify an at least one proximal product location to the current location, wherein the plurality of geospatial product locations includes the at least one proximal product location; and graphically displaying the at least one proximal product location from the plurality of geospatial product locations during step (G) through the user computing device.

 

6.  The method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method as claimed in 1 comprises the steps of: providing a store kiosk as the user computing device and a plurality of available LED products associated with the store kiosk, wherein each of the plurality of available LED products is associated with a corresponding in-store location; comparing the at least one matching LED design against each of the plurality of available LED products in order to identify an at least one in-stock LED product from the plurality of available LED products; and graphically displaying the at least one in-stock LED product and the corresponding in-store location of the at least one in-stock LED product through the user computing device.

 

 

 

 2 
 

 

7.  The method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method as claimed in 6 comprises the steps of: providing a physical visual indicator positioned adjacent to the corresponding in-store location for each of the plurality of available LED designs; and activating the physical visual indicator corresponding to the in-store location of the at least one in-stock LED design.

 

8.  The method for an LED product filtering engine by executing computer-executable instructions stored on a non-transitory computer-readable medium, the method as claimed in 1 comprises the steps of: graphically displaying the aggregate set of desired specifications through the user computing device prior to step (E), wherein each of the aggregate set of desired specifications includes a descriptive summary.

 

 

Description

 

 

 

[0001] The current application claims a priority to the U.S. Provisional Patent application Ser. No. 62/050,559 filed on Sep. 15, 2014.

 

FIELD OF THE INVENTION

 

[0002] The present invention relates generally to a method for a product selection engine in relation to light- emitting diode (LED) fixtures. More specifically, the present invention is a method for assisting consumers in identifying and selecting a proper LED design based on a set needs and preferences.

 

BACKGROUND OF THE INVENTION

 

[0003] Today, there exists a need to help consumers, individuals and businesses, choose the correct light- emitting diode (LED) bulbs/lamps and LED fixtures for their needs. Buying LED bulbs/lamps and LED fixtures is a much harder task than purchasing traditional bulbs/lamps and traditional fixtures as have been commonplace since the invention of the first filament light bulb, by Thomas Edison in 1879. Traditional light products include halogen light bulbs, incandescent light bulbs, fluorescent light bulbs, compact fluorescent lamps, and metal-halide light bulbs.

 

[0004] In 1881, Lewis Howard Latimer improved upon Thomas Edison's findings by inventing a carbon filament. The following year, as part of Edison's research team known as "Edison's Pioneers", Latimer developed and patented a method of manufacturing carbon filaments. It wasn't until 1910, when William David Coolidge invented a tungsten filament, which lasted longer than the older filaments. At that point in time, the incandescent bulb revolutionized the world. Due to an energy shortage caused by the 1973 oil crisis, engineers developed a fluorescent bulb that could be used in residential applications. In 1976, General Electric figured out how to bend the fluorescent tube into a spiral shape, creating the first compact fluorescent light (CFL). It wasn't until the mid 1980's when mass machinery was utilized in the mass production of CFL's.

 

[0005] While LED technology dates back to the 1970's with the use of indicator lights and calculators, it wasn't until the year 2000, when the Department of Energy (DOE) partnered with private industry to push LED technology forward by creating a high-efficiency device that packaged LED's together. In 2008, the DOE announced a competition to spur the development of ultra-efficient solid-state lighting products to replace common/traditional lighting technologies. Since then, there has been an onslaught of manufacturers, both in the United States and abroad that have flooded the marketplace with LED Bulbs and LED Fixtures that replace every conceivable traditional bulb/fixture that has existed in the marketplace for the previous 100 plus years. With the rush to market, manufacturing complexities of LED and myriad of choices, there has been much confusion for both the home and business consumer in terms of which LED light bulb, lamp or fixture is the right choice for them. As such, the market has been slow to adapt.

 

[0006] For example, in the past, if a consumer wanted to replace a halogen hi-hat bulb in their home or business, all they needed to know was the wattage and color choice of the bulb they were replacing. It didn't matter which manufactured bulb (hi-hat) they chose, because in the same category of bulbs/lamps (hi-hat in this case) all looked the same. With LED bulbs/lamps, that is simply not the case anymore. The landscape has changed. Today, customers might buy a handful LED Hi-Hats from different manufacturers that are advertised as the same wattage and color replacement. However, when they screw the various bulbs in at their home or place of business, it becomes abundantly clear that not all LED bulbs are equal. Every single bulb of the handful they try might have different color and light output characteristics.

 

 

 

 3 
 

 

[0007] Unlike traditional lighting of the past, LED bulbs create quite a bit of confusion. There are color variations as well as different wattages that don't necessarily equate to the lumen output of traditional bulbs. With that said, lumen outputs, even at the same wattage can vary greatly. Also, unlike traditional lighting, LED is a directional light. If you consider a traditional A19 incandescent bulb that is used in a wall sconce or table lamp with a shade covering, it is simply not enough to try and replace the incandescent bulb with an LED bulb that advertises the same wattage equivalence. The beam angle of the LED bulb must also be taken into consideration. With traditional lighting, a standard incandescent bulb will generally have light coverage ranging from 270 degrees to 360 degrees. With an LED A19 bulb/lamp, there are vast amounts of bulbs in the marketplace that fall well below 270 degrees beam angle. Usually, the LED customer is unaware until they screw the LED A19 into their shaded table lamp or wall sconce, only to find that the light coverage is not equal to the traditional bulb they are replacing. Furthermore, due to the lack of knowledge of those that are selling LED, many customers have to continually return and try new LED bulb/lamps, until they find one that works in their application. It is frustrating experiences such as this that have slowed the widespread growth of LED lighting in both home and business applications. There are websites in today's market that offer filtering options in hopes of helping the consumer narrow their choices in hopes of making a more informed buying decision when purchasing LED.

 

[0008] Unfortunately, these filtering systems are extremely confusing for the average home and business consumer. Most consumers can look at a picture of a traditional bulb and recognize that they currently use that bulb at their home or place of business. However, most consumers do not know the specific name of the type of bulb they are using. For example, customers are aware that they have hi-hat bulb/lamps but they are not aware that the technical term for that bulb/lamp type is "R or BR". Customers are aware that they have fluorescent tubes but they are not aware that some are "T8" type tubes, while others are "T12". Customers are aware that they might want to replace their "chandelier bulbs" but are not unaware that they are referred to as "decorative" or "candelabra" type bulbs. The point is that, while there are other solutions available to assist customers in selecting the right LED bulb/lamps for their home and/or businesses, the customer must have some working knowledge of bulbs to pinpoint the correct LED bulb/lamps for their needs. Unfortunately, the average consumer have little to no working knowledge of their needs and/or requirements when looking to replace their traditional lamp/bulbs and fixtures with an LED replacement.

 

BRIEF DESCRIPTION OF THE DRAWINGS

 

[0009] FIG. 1 is a flowchart for the present invention depicting the overall process.

 

[0010] FIG. 2 is a flowchart of the present invention depicting the steps executed in order to utilize a plurality of design categories for the present invention, specifically in relation to a plurality of light-emitting diode (LED) designs.

 

[0011] FIG. 3 is a flowchart of the present invention depicting the steps executed in order to utilize a plurality of design categories for the present invention, specifically in relation to a plurality of filter questions.

 

[0012] FIG. 4 is a flowchart of the present invention depicting the use of location-based services.

 

[0013] FIG. 5 is a flowchart of the present invention depicting the steps required in order to display an aggregate set of desired specifications.

 

[0014] FIG. 6 is a flowchart of the present invention depicting an embodiment which continuously displays an at least one matching LED design for a specific iteration during the plurality of iterations.

 

[0015] FIG. 7 is a flowchart of the present invention implemented in a retail store through a store kiosk.

 

[0016] FIG. 8 is a schematic diagram of the present invention depicting the user computing device being implemented in the form of a store kiosk.

 

[0017] FIG. 9 is a schematic diagram of the present invention depicting the user computing device being utilized inside a retail store in conjunction with a physical visual indicator.

 

 

 

 4 
 

 

DETAIL DESCRIPTIONS OF THE INVENTION

 

[0018] All illustrations of the drawings are for the purpose of describing selected versions of the present invention and are not intended to limit the scope of the present invention.

 

[0019] The present invention is a method for a product selection engine. More specifically, the present invention is a filtering method which assists a consumer in identifying and selecting the proper light-emitting diode (LED) product(s) for his or her specific lighting application needs. In particular, the present invention is aimed to aid the consumer in identifying the LED based products, LED bulbs and or LED fixtures, which fit the technical specification associated with an existing traditional light bulbs and fixtures which he or she owns. Traditional light bulbs and fixtures include, but are not limited to, halogen, incandescent, fluorescent, metal-halide, high pressure sodium, and other type of light or lighting fixture that can be replaced with an LED product.

 

[0020] The present invention is a method implemented in the form of a software application by a user computing device and an external server. The present invention is preferably integrated into a website that is hosted on the external server and is accessible through the Internet. The external server provides the significant amounts of data storage to be used by the present invention. A user may access the website and, therefore, the present invention through the user computing device. The user computing device may be virtually any modern computing device which possesses an Internet connection and a user interface. The user computing device can be, but is not limited to, desktops, laptops, tablet computers, Internet-enabled mobile phone, smart phones, and other portable computing devices.

 

[0021] Referring to FIG. 1, the overall process of the present invention delineates the steps necessary to be taken in order to identify a correct LED design for a particular lighting application for a user, referred to as a user account. The initial step of the overall process includes populating the external server with a plurality of LED designs, a plurality of filtering questions, and an aggregate set of desired specifications (Step A).

 

[0022] The plurality of LED designs is a list of LED products and their respective designs, uses, and respective fields that are available on the market. Each of the plurality of filtering questions is preferably a simple "laymen term" question corresponding to a particular aspect/metric of a lighting application, such as wattage, light color, and illumination degree to name a few non-limiting example. In order to facilitate a more user friendly experience, each of the plurality of filter questions is associated with a plurality of answers, essentially multiple choice questions. Each of the plurality answers is further associated with an at least one technical specification in relation to LED designs from the plurality of LED designs. Through this association, the present invention is able to determine the exact needs of the user account. The aggregate set of desired specifications is a list of metrics defining the needs of the user.

 

[0023] Next in the overall processes for the present invention is graphically displaying a specific question from the plurality of filter questions through the user computing device, which also includes displaying the associated plurality of answers (Step B). The specific question may be displayed in conjunction with images, texts, videos, and other forms of media that are related to the question. The user account is then prompted to select a desired answer from the plurality of answers for the specific question through the user computing device (Step C). The user may select the desired answer by clicking a corresponding box or entering text which correspond to the desired answer. Upon receiving the desired answer for the specific question, the present invention updates the aggregate set of desired specifications with the at least one technical specification associated with the desired answer (Step D). The aggregate set of desired specifications directly reflects the needs and wants of the user based on the desired answer. Next, the aggregate set of desired specifications is then sent from the user computing device to the external server as search query (Step E). The external server compares the aggregate set of desired specifications against each of the plurality of LED designs in order to identify an at least one matching LED design from the plurality of LED designs (Step F). The at least one matching LED design meets the requirements set by the search query, the aggregate set of desired specifications. The identified at least one matching LED design is then sent back to the user computing device from the external server (Step G). The aforementioned steps, in particular steps (B) through (G), are executed as a plurality of iterations for each of the plurality of filter questions; each of the plurality of filter question is associated with a specific iteration from the plurality of iterations (Step H). The plurality of iterations is executed until each of the filter questions is answered. Additionally, the aggregate set of desired specifications is continuously updated during the plurality of iterations. Once each of the filter question has been answered, the user computing device graphically displays the at least one matching LED design of a last iteration from the plurality of iterations (Step I). The last iteration is associated with the most updated aggregate set of desired specifications and fully reflects the needs and requirements of the user.

 

 

 

 

 5 
 

 

[0024] In the preferred embodiment, the present invention executes the plurality of iterations and then displays the at least one matching LED design which matches all of the specifications within the aggregate set of technical specifications. This requires the user to answer all of the questions within the plurality of filter questions before receiving any results. In an alternative embodiment, the present invention continuously displays the at least one matching LED design for each of the plurality of iterations as each question is answered as seen in FIG. 6. More specifically, the at least on matching LED design associated with the specific iteration from the plurality of iterations is graphically displayed after step (G) by the user computing device. As the user answers more questions, the resulting matching LED designs are further filtered and displayed to reflect the aggregate set of technical specifications as indicated by the answers. In this regard, the user may be able find the LED design for which they are looking before completing all of the questions from the plurality of filtering questions.

 

[0025] Each of the plurality of filter questions is designed to be simple, multiple choice, to facilitate a quicker and easier process. Questions may be displayed by the user computing device through text and may include corresponding images, videos, or animations to further aid the user in his or her selection of an answer. Questions may require only one answer while others may allow more than one answer. Additionally, certain questions may be required to be answered by the user while others may give the user the option to provide a "not sure" answer or skip the question entirely. An example of a question from the plurality of filter questions is "What is the approximate width of the bulb you are replacing?" with the following as the plurality of answers "a. Close to 5 inches b. Close to 4 inches c. Close to 3 inches". The selected answer to this first question is associated with the technical specification relating to the type of "hi-hat" he or she currently owns. More specifically, the answer (a) refers to a BR40 "hi-hat", answer (b) refers to a BR30 "hi-hat", and answer (c) refers to a BR20 "hi-hat".

 

[0026] Referring to FIG. 2, in one embodiment, the present invention also subdivides the plurality of LED designs into various groups in order to facilitate a more efficient means for identifying the at least one matching LED design. More specifically, the present invention utilizes a plurality of design categories to group the plurality of LED designs with each of the plurality of design categories being associated with a set of corresponding LED designs within the plurality of LED designs. Categories includes, but are not limited to, lamp bulbs, candelabra bulbs, compact fluorescent lamps, Christmas lights, dimmers, fluorescent tubes, globe bulbs, multifaceted reflector bulbs, landscape lighting, pool lighting, R or BR bulbs, recessed downlights, and safety lighting. The category selection is executed prior to step (B). In particular, first the plurality of categories is graphically displayed through the user computing device. Then the user account is prompted to select a specific category from the plurality of design categories through the user computing device. The plurality of design categories may be arranged in any order, the preferred arrangement is alphabetical order. Additionally, the plurality of design categories may be displayed through a variety of means including, but not limited to, text, images, videos, and animations in order to aid in identifying the type of light product the user may need or is searching for. The selection of the specific category from the plurality of design categories places a limitation on which designs from the plurality of LED designs that are viewed and compared against during step (F). In particular, the aggregate set of desired specifications is compared against each design within the set of corresponding LED designs for the specific category. For example, a user may wish to replace a traditional light bulb in the kitchen of his or her home, the present invention would exclude any LED designs/products from the search that are not typically used in home applications.

 

[0027] Referring to FIG. 3, in addition to subdividing the plurality of LED designs, the plurality of design categories also subdivides the plurality of filter questions. In particular, each of the plurality of design categories is associated with a set of corresponding questions within the plurality of filter questions. The selection of the specific category from the plurality of design categories limits which questions are used throughout the overall process of the present invention. This tailors the overall process to the set of corresponding LED designs for the specific category, ensuring the user does not need to answer unrelated and unnecessary questions in relation to his or her specific lighting application. During the step (B), the user computing device graphically displays a specific question only from the set of corresponding questions associated with the specific category. Similarly, the overall process is repeated only for the set of corresponding questions for the specific category as seen in FIG. $. In particular, steps (B) through (E) are repeated for each of the set of corresponding questions for the specific category from the plurality of design categories during step (H).

 

[0028] Referring to FIG. 4, in one embodiment, the present invention utilizes location-based services in order to locate and display nearby product locations for the at least one matching LED design. For this feature, the present invention is provided with product locations for each of the plurality of LED designs. This information may be obtained through a variety of means. The preferred method includes the external server and or the user computing device being directly connected to inventories and product databases of large-scale retailers of LED products as well as electrical distributors such as Home Depot, Lowe's, Menard's, Orchard Supply Hardware, Handy Andy Home Improvement Center, Hechinger, Sears, Ernst Home Centers, Empire Today, Channel Home Centers, Builder's Square, Build.com, 84 Lumber, Home Quarter's Warehouse, Home Base, Home Fix Corporation, Pacific Sales, Pay'n Pak, Payless Cashways, Proteak, Rickel, Scotty's Builder's Supply & Valu Home Centers, Grainger, Graybar, HD Supply, and CED.

 

 

 

 6 
 

 

[0029] In order to identify nearby products, the present invention first identifies a current location of the user computing device, and therefore the user. This may be achieved through a variety of means. In one embodiment of the present invention, the user computing device contains a global positioning system (GPS) which reports the current location. In alternative embodiments, various types of location systems are utilized such as cell tower triangulation methods. Then the present invention identifies a plurality of geospatial product locations for the at least one matching LED design. Next, the current location is compared to each of the plurality of geospatial locations for the at least one matching LED design in order to identify an at least one proximal product location to the current location of the user computing device; the at least one proximal product location is one of the plurality of geospatial product locations. The distance value for identifying the at least one proximal product location may be pre-set by an administrative entity. Alternatively, the distance value may be entered by the user account, thus providing an additional layer of customization to the feature. If the at least one proximal product location is identified, then it is graphically displayed during step (G) through the user computing device. The at least one proximal product location may be displayed in the form of an address, a retail location, a map image, or a combination thereof.

 

[0030] The location-based services may be further categorized into the inventories of proximal store locations. To this end, location information obtained by from the user computing device sets which inventories the present invention searches. If the user computing device reports the current location to be within a Home Depot retail store, then the present invention only searches through the inventories of said retail store. If the user computing device is in close proximity to more than one retail store, then the present invention prompts the user to choose at which retail store he or she is currently located.

 

[0031] Referring to FIG. 7 and FIG. 8, in yet another embodiment, the present invention is implemented directly in a retail store through a store kiosk. In this embodiment, the user computing device is the store kiosk. The store kiosk is provided with and associated with a plurality of available LED products, the retail store's inventory. Each of the plurality of LED products is additionally associated with a corresponding in- store location, this information is provided and continuously updated by an administrator entity, the retail store. In-store location includes information relating to specific aisles, sections, and store levels to name a few non-limiting examples. Once the at least one matching LED design is identified, the present invention then compares the at least one matching LED design against each of the plurality of available LED products in order to identify an at least one in-stock LED product from the plurality of available LED products. If an at least one in-stock LED product is identified, then it is graphically displayed through the store kiosk along- side with the corresponding in-store location as seen in FIG. 8. To further aid the user in locating the at least on in-stock LED product, a physical visual indicator is positioned adjacent to the corresponding in-store location for each of the plurality of available LED designs. The preferred physical visual indicator is a pair of flashing diodes. Once the at least one in-stock LED product is displayed to the user, the present invention activates the physical visual indicator corresponding to the in-store location of the at least one in-stock LED in order to further assist the user in locating the in-stock LED product. An example is seen in FIG. 8 where the at least one in-stock LED product is located in the second aisle; this information is first displayed to the user and then the physical visual indicator that is associated with the second aisle is activated in order to signal to the user.

 

[0032] In an alternative embodiment, the physical visual indicator is communicably coupled to the user computing device in order to respond when the user computing device is within a certain vicinity of the physical visual indicator. This is achieved through near-field communication tags or other location-responsive devices such as GPS. An example is seen in FIG. 9 where the physical visual indicator wirelessly communicates with the user computing device and turns on when the user computing device approaches the second aisle. The distance required for the physical visual indicator to activate may vary and in one embodiment may be set by the user.

 

[0033] In one embodiment, the present invention also provides the user with educational information about relevant LED products. More specifically, the user computing device graphically displays the aggregate set of desired specifications prior to step (E) wherein each of the aggregate set of desired specifications includes a descriptive summary as seen in FIG. 5. The descriptive summary may include definitions, diagrams, videos, pictures, and other similar information which further describes the corresponding technical specification. For example, for the wattage specification the descriptive summary will include the intensity and the yearly power consumption ratings for various wattage ratings.

 

[0034] An additional example of a question from the plurality of filter questions is "What color choice do you prefer?" with the following as the plurality of answers:

 

 

 

 7 
 

 

[0035] a. Very Yellow (mustard yellow . . . almost to the point of being orange)

 

[0036] b. Yellow (I like yellow, without appearing too white)

 

[0037] c. Soft White (I like soft white, with maybe a tinge of yellow)

 

[0038] d. Natural White (I like a nice white without being too white)

 

[0039] e. Stark White (I like white that is a stark white)

 

The selected answer to this question is associated with the technical specification relating to the temperature associated with an LED design. More specifically, the answer (a) refers to 2500 K (Kelvin), answer (b) refers to 2700 K, answer (c) refers to 3000 K, answer (d) refers to 4000 K, and answer (e) refers 5000 K.

 

[0040] Another example of a question from the plurality of filter question is "Where will these bulbs be used?" with the following as the plurality of answers:

 

[0041] a. Indoor (Hi-Hats in the Kitchen, Living Room, etc.)

 

[0042] b. Outdoor (in Covered Fixture for Landscape, Security, etc.)

 

[0043] c. Outdoor (Exposed to the Elements for Landscape, Security, etc.)

 

The selected answer to this question is associated with the technical specification relating to the rating associated with various environments. More specifically, the answer (a) refers to indoor rating, answer (b) refers to outdoor/damp location rating, and answer (c) refers to waterproof rating.

 

[0044] Another example of a question from the plurality of filter question is "Approximately how high are the ceilings (indoors) or the throw distance (outdoors), where these bulbs will be used?" with the following as the plurality of answers:

 

[0045] a. 4 ft.

 

[0046] b. 5 ft.

 

[0047] c. 6 ft.

 

[0048] d. -k . . . to 14 ft.

 

[0049] The selected answer to this question is associated with the technical specification relating to the correct lumen output needed.

 

[0050] Another example of a question from the plurality of filter question is "When it comes to light . . . ?" with the following as the plurality of answers:

 

[0051] a. I like a muted amount of light

 

[0052] b. I like a normal amount of light

 

 

 

 8 
 

 

[0053] c. I like a lot of light

 

[0054] The selected answer to this question is associated with the technical specification relating the intensity and degree of coverage of an LED design.

 

[0055] Another example of a question from the plurality of filter question is "Do you need bulbs that are dimmable?" with the following as the plurality of answers:

 

[0056] a. Yes

 

[0057] b. No

 

[0058] The selected answer to this question determines if the LED design is dimmable or not. [0059] Although the invention has been explained in relation to its preferred embodiment, it is to be understood that many other possible modifications and variations can be made without departing from the spirit and scope of the invention as hereinafter claimed.

 

*****

 

 

 

 

 

 

 

 9 

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