diff --git a/.gitignore b/.gitignore
index f82f9b0..1349ea7 100644
--- a/.gitignore
+++ b/.gitignore
@@ -30,3 +30,5 @@ bin/
 
 ### Terraform ###
 .terraform
+*.tfstate
+*.tfstate.backup
diff --git a/Compute/Demo3/terraform.tfvars b/Compute/Demo3/terraform.tfvars
new file mode 100644
index 0000000..0b9ec68
--- /dev/null
+++ b/Compute/Demo3/terraform.tfvars
@@ -0,0 +1 @@
+cidr_block = "10.0.0.0/8"
\ No newline at end of file
diff --git a/Compute/Demo3/variables.tf b/Compute/Demo3/variables.tf
new file mode 100644
index 0000000..0074f7f
--- /dev/null
+++ b/Compute/Demo3/variables.tf
@@ -0,0 +1,6 @@
+variable "cidr_block" {
+  type        = string
+  description = "CIDR block of VPC"
+  default     = "10.0.0.0/16"
+}
+
diff --git a/SecurityManagementCompliance/Exercise1/.terraform.lock.hcl b/SecurityManagementCompliance/Exercise1/.terraform.lock.hcl
new file mode 100644
index 0000000..e51eea3
--- /dev/null
+++ b/SecurityManagementCompliance/Exercise1/.terraform.lock.hcl
@@ -0,0 +1,17 @@
+# This file is maintained automatically by "terraform init".
+# Manual edits may be lost in future updates.
+
+provider "registry.terraform.io/hashicorp/aws" {
+  version     = "5.51.1"
+  constraints = ">= 5.0.0"
+  hashes = [
+    "h1:ESfxP2tCO6IZldSQnepXmIm+x+VtaQt/bKgGjYE+0BY=",
+  ]
+}
+
+provider "registry.terraform.io/hashicorp/random" {
+  version = "3.6.2"
+  hashes = [
+    "h1:wmG0QFjQ2OfyPy6BB7mQ57WtoZZGGV07uAPQeDmIrAE=",
+  ]
+}
diff --git a/SecurityManagementCompliance/Exercise1/main.tf b/SecurityManagementCompliance/Exercise1/main.tf
new file mode 100644
index 0000000..15eaf14
--- /dev/null
+++ b/SecurityManagementCompliance/Exercise1/main.tf
@@ -0,0 +1,6 @@
+resource "aws_iam_group" "Group1" {
+  name = "Team-${random_pet.this.id}"
+  path = "/users/"
+}
+
+resource "random_pet" "this" {}
\ No newline at end of file
diff --git a/SecurityManagementCompliance/Exercise1/outputs.tf b/SecurityManagementCompliance/Exercise1/outputs.tf
new file mode 100644
index 0000000..c2042e9
--- /dev/null
+++ b/SecurityManagementCompliance/Exercise1/outputs.tf
@@ -0,0 +1,4 @@
+output "GroupName" {
+  value       = aws_iam_group.Group1.name
+  description = "Name of IAM group"
+}
\ No newline at end of file
diff --git a/SecurityManagementCompliance/Exercise1/provider.tf b/SecurityManagementCompliance/Exercise1/provider.tf
new file mode 100644
index 0000000..b6ed192
--- /dev/null
+++ b/SecurityManagementCompliance/Exercise1/provider.tf
@@ -0,0 +1,27 @@
+provider "aws" {
+  region = "ap-east-1"
+
+  default_tags {
+    tags = {
+      ServiceProvider     = "RackspaceTechnology"
+      Environment         = "Training"
+      Project             = "Iac"
+      TerraformMode       = "managed"
+      TerraformDir        = "${reverse(split("/", path.cwd))[1]}/${reverse(split("/", path.cwd))[0]}"
+    }
+  }
+}
+
+output "last-updated" {
+  value = timestamp()
+}
+
+terraform {
+  required_version = ">= 1.3.0"
+  required_providers {
+    aws = {
+      source  = "hashicorp/aws"
+      version = ">= 5.0"
+    }
+  }
+}
\ No newline at end of file
diff --git a/SecurityManagementCompliance/Exercise1/terraform.tfvars b/SecurityManagementCompliance/Exercise1/terraform.tfvars
new file mode 100644
index 0000000..e69de29
diff --git a/SecurityManagementCompliance/Exercise1/variables.tf b/SecurityManagementCompliance/Exercise1/variables.tf
new file mode 100644
index 0000000..e69de29