Document:

Royalty Agreement between the Registrant and Sparx, Inc., dated December 20 2005

 Exhibit 10.1 
 ROYALTY AGREEMENT 
 This agreement is made and entered into by and between Sparx, Inc., a corporation organized and existing under the laws
of the State of Florida and have an address at 1358 Fruitville Road, Suite 209, Sarasota, FL 34236 (“SPARX”) and Sologic, Inc., a corporation organized and existing under the laws of the State of Delaware and having its principal place of
business at 1358 Fruitville Road, Suite 209, Sarasota, FL 34236 (“SOLOGIC”). 
 W I T N E S S E T H: 
 WHEREAS, SPARX has assigned to SOLOGIC the Patent(s) (as hereinafter defined), and the inventions created using those rights pursuant to an Assignment of
even date herewith; and 
 WHEREAS, SPARX and SOLOGIC desires to set forth their agreement with regard to royalty payments to be paid by
SOLOGIC to SPARX with regard to the Patent(s). 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1.
DEFINITIONS 
 For purposes of this Agreement, the following terms shall have the meanings ascribed to them in this Section 1. 
 a. Gross Revenues shall mean gross revenues of SOLOGIC from all sources, determined in accordance with generally accepted accounting principles, as reflected on
the income statement of SOLOGIC prepared in accordance with generally accepted accounting principles and furnished to SOLOGIC’s shareholders or to the public; provided, however, that if no such income statement is prepared by SOLOGIC,
then an income statement prepared in accordance with Section 4 of this Agreement. 
 b. Invention(s) means Substrate With Light Display,
described in U.S. Patent Application No. 60/608,783, U.S. Patent Application No. 11/219,164, U.S. Patent Application No. 60/617,263 and U.S. Patent Application No. 60/804,224 and any related patents or patent applications.

 c. Patent(s) shall mean any and all patents granted to SPARX pertaining to the Invention(s), as defined herein, including U.S. or foreign patents
and any other corresponding foreign patent applications and any patents which may be granted thereon including 

 
any and all patents granted on substitutes, divisions, continuations, continuations-in-part, reissues and extensions of said patents. 
 d. Products shall mean those which embody the Invention(s) or come within a claim of any of the Patent(s) whether sold or otherwise disposed of in an assembled or
unassembled condition, parts associated therewith, and other components. 
 e. Royalty or Royalties shall mean revenues received in the form of cash,
property and/or equity securities from SOLOGIC as a result of licensing and using, selling, making, having made, Invention(s). 
 2. PAYMENTS FOR
PATENT RIGHTS. 
 a. In consideration for the transfer and sale of the Patent(s), SOLOGIC
hereby grants to cash royalty payments shall be made to SPARX on a quarterly basis, no later than the 15th day after
the end of each fiscal quarter in which a royalty payment is due under this Agreement; provided, however, that at any time when SOLOGIC prepares audited year-end financial statements, then the royalty payment due after the end of the fiscal
year shall not be due until the earlier of (a) the date on which the audited financial statements are first released to the public, or (b) 45 days after the end of the fiscal year. The amount of the royalty payment shall be determined,
according to Exhibit 3(b) hereto, which is attached hereto and made a part hereof. The parties expressly acknowledge and agree that the amount of the royalty payment may be modified in the same manner as this Agreement may be modified and that, if
such a modification is made, then they shall attach a revised Exhibit 3 hereto setting forth the new calculation and the date as of which it is to be effective. 
 b. Under this Agreement, Products shall be considered sold when billed to a customer, except that upon expiration of any Patent or upon any termination of this Agreement, all shipments made on or prior to the date of such expiration or
termination which have not been billed prior thereto shall be considered as sold and therefore subject to any royalty due. 
 c. The royalty payments due
under this Agreement shall be in consideration for the sum total of all rights conferred by SPARX to SOLOGIC hereunder. 
 3. REPRESENTATIONS

 a. By SOLOGIC. SOLOGIC hereby represents and warrants to SPARX that 
 i. This Agreement and each of the agreements and other documents and instruments delivered or to be delivered by SOLOGIC pursuant to or in contemplation of this Agreement will constitute, when so delivered, the valid
and binding obligation of SOLOGIC and shall be enforceable in accordance with their respective terms; 
 ii. SOLOGIC a corporation in good standing, duly
organized and validly existing under the laws of the State of Delaware; 
 iii. The execution and delivery of this Agreement has been duly 

 
authorized by all necessary corporate action; and 
 iv. The
shares issuable upon payment of a Royalty payment in stock shall be, when issued, duly issued, fully paid and nonassessable shares of common stock of SOLOGIC and shall be free and clear of all liens and encumbrances of any kinds whatsoever,
including but not limited to, security interests and preemptive rights. 
 b. By SPARX. SPARX hereby represents and warrants to SOLOGIC that

 i. This Agreement and each of the agreements and other documents and instruments delivered or to be delivered by SPARX pursuant to or in contemplation of
this Agreement will constitute, when so delivered, the valid and binding obligation of SPARX and shall be enforceable in accordance with their respective terms; 
 ii. It is a corporation in good standing, duly organized and validly existing under the laws of the State of Florida; and 
 iii. The execution and
delivery of this Agreement have been duly authorized by all necessary corporate action. 
 c. Nothing in this Agreement shall be construed as 
 i. A warranty or representation by SPARX as to the validity or scope of the Patent(s) or any patent application relating thereto; or 
 ii. A warranty or representation by SPARX that anything made, used, sold or otherwise disposed of under any license granted in this Agreement is or will be free from
infringement of patents or third party rights; or 
 iii. An obligation of SPARX to bring or prosecute actions or suits against third parties for
infringement (except to the extent and in the circumstances set forth in Section 11 hereof); or 
 iv. Granting by implication, estoppel, or otherwise,
any licenses or rights under patents of SPARX other than the Patent(s), 
 d. SPARX makes no representations, EXTENDS NO WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, and assumes no responsibilities whatever with respect to the use, sale, or other disposition by SOLOGIC or its vendees or other transferees of products incorporating or made by use of (i) Inventions licensed under this
Agreement or (ii) information, if any, furnished under this Agreement. 
 4. REPORTS, BOOK AND RECORDS. 
 a. SOLOGIC agrees to keep records of its manufacture, use, sale or other disposition of 

 
Products with respect to which royalty payments hereunder are to be in sufficient detail to enable the royalties payable hereunder by SOLOGIC to be
accurately determined and further agrees to permit its books and records to be examined from time to time, to the extent necessary to verify the reports provided for in this Section 5, such examination to be made at the expense of SPARX by any agent or auditor appointed by SPARX who shall be acceptable to SOLOGIC. 
 b. At the time a royalty payment is made under this Agreement, SOLOGIC shall furnish to SPARX a written report setting forth the number and description of the Products
manufactured and thereafter used, sold or otherwise disposed of under the license granted herein during the period to which the report relates, along with a copy of the income statement of SOLOGIC for such period. 
 c. SOLOGIC also agrees to make a written report to SPARX within thirty (30) days after the date of any termination of this Agreement, stating in such report the
number and description of the Products manufactured and thereafter used, sold or otherwise disposed of and not previously report to SPARX. 
 5.
MARKING 
 SOLOGIC agrees to mark or have marked all Products made, used or leased by it under the Patent(s), if and to the extent such marking
shall be practical, with such patent markings as shall be desirable or required by applicable patent laws. 
 6. Indemnity 
 SOLOGIC shall hold SPARX harmless against all liabilities, demand, damages, expense, or losses of any kind arising out of (i) use by SOLOGIC or its transferees of
inventions licensed or information furnished under this Agreement, or (ii) any use, sale or other disposition by SOLOGIC or its transferees of products made by use of such inventions or information. 
 7. MISCELLANEOUS 
 a. Taxes. Any taxes in the nature of a sales
or transfer tax of any kind payable on the execution of this Agreement shall be paid by SOLOGIC. 
 b. Assignability. Neither this Agreement nor any rights
or obligations hereunder, are assignable by any party hereto without the prior written consent of the other party hereto. The obligations of SOLOGIC hereunder shall be binding upon any successor of SOLOGIC through name change, merger, consolidation,
or reorganization. 
 c. Section Headings. The Section and paragraph headings in this Agreement are for convenience of reference only and shall not be deemed
to alter or affect provisions thereof. All Exhibits and/or Schedules hereto shall be initialed for identification or may 

 
be physically annexed hereto, but in either event such Exhibits or Schedules shall be deemed to be a part hereof. 
 d. Waiver. Neither the failure nor any delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, or of
any other right, power or remedy or preclude any further or other exercise thereof, or the exercise of any other right, power or remedy. 
 e. Expenses.
Except as otherwise provided herein, SPARX and SOLOGIC shall pay the fees and expenses of their respective accountants and legal counsel incurred in connection with the transactions contemplated by this Agreement. 
 f. Notices. Any notices required or permitted to be given hereunder shall be given in writing and delivered in person or sent certified mail, postage prepaid, return
receipt requested, or via facsimile, to the respective parties to the following addresses (or at such other addresses as may hereinafter be designated by such party in writing to other parties): 
 If to SPARX: 
 Sparx, Inc. 
 1358 Fruitville Road 
 Suite 209 
 Sarasota, FL 34236 
 Attention: Carl L. Smith, III, President 
 If to SOLOGIC: 
 Sologic, Inc. 
 1358 Fruitville Road 
 Suite 209 
 Sarasota, FL 34236 
 Attention: Carl L. Smith, III, Chairman and CEO

 g. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the United States and the State of Florida. 

h. No Partnership. The parties do not intend this Agreement to create a joint venture, partnership or any similar business relationship between them. 
 i. Entire Agreement. This Agreement contains the entire agreement between the parties hereto with respect to the transaction contemplated herein and shall not be
modified or amended except by an instrument in writing signed by the parties hereto. 

 j. Validity. The invalidity or unenforceability of any particular provision of this Agreement shall not affect any other
provisions hereof, and this Agreement shall be construed in all other respects as if such invalid and unenforceable provisions were omitted. 
 k. Amendment.
This Agreement may not be amended or modified except by a written instrument executed by SOLOGIC and SPARX. 
 l. Counterparts. This Agreement may be signed
in any number of counterparts each of which shall be deemed to be an original and all of which together shall constitute but one and the same instrument. 
 m. Effective Date of Agreement. The parties hereto intend that this Agreement shall be effective as of December 20, 2005 and shall supercede and replace any agreements relating to the subject hereof entered into on or since that date.

 IN WITNESS WHEREOF, this Agreement has been executed on behalf of the parties hereto be effective as of the date first above written. 
  

			
	 SPARX
 SPARX, INC., a Florida
corporation

		
	BY:	 	/s/ Carl L. Smith, III
	Carl L Smith, III, President
	
	 SOLOGIC
 SOLOGIC, INC., a Delaware
corporation

		
	BY:	 	/s/ Carl L. Smith, III
	Carl L. Smith, III, Chairman and CEO

 EXHIBIT 3(a) 
 CALCULATION OF ROYALTY PAYMENT 
 The royalty payment due pursuant to Section 3 of the Royalty Agreement between Sparx, Inc. and Sologic,
Inc. shall be computed as follows: 
 4.9% of Gross Revenues of SOLOGIC 
 For purposes of this calculation, Gross Revenues shall be defined in the manner set forth in the Agreement. 
 Royalty
Payments shall be made in cash unless SPARX shall notify SOLOGIC, on or before last day of any fiscal quarter, of SPARX’s intention to take the royalty payment in shares of common stock of SOLOGIC (“Shares”). In the event SPARX elects
to take shares rather than cash, the number of shares to be issued shall be calculated as follows: 
 RP ÷X = Number of shares, where

 RP = the total royalty payment due to SPARX 
 and

 X = the greater of $.10 or, if the Shares are listed on either the NASDAQ National Market System or on the New York Stock Exchange, then the average
of the closing sale price of a Share on such exchange for the five trading days immediately preceding the end of the fiscal quarter for which the royalty payment is being made 
 One or more stock certificates representing the Shares to be issued shall be delivered to SPARX on or before the date on which the royalty payment is required to be made under the terms of the Agreement.Stock Option Agreement between the Registrant and Carl Smith, dated Dec 20 2005

 Exhibit 10.2 
 SOLOGIC, INC. 
 STOCK OPTION AGREEMENT 
 THIS STOCK OPTION AGREEMENT (the “Agreement”) is made and entered into by and between Sologic, Inc., a Delaware corporation (the “Company”), and Carl L. Smith, III, an individual of the full age of majority
and a resident of the state of Florida (“Smith”), who is the President and CEO of Sparx, Inc., a Florida corporation (“Sparx”), to be effective as of December 20, 2005 (the “Effective Date”). This Agreement is
intended to constitute an individual grant of stock options and is not made under any employee benefit plan or other plan of the Company. 
 1. Grant. As
of the Effective Date, the Board of Directors of the Company (the “Board”), or a committee of the Board, has granted to Smith a stock option to purchase 500,000,000 shares (the “Shares”) of $.001 par value common stock issued by
the Company (the “Common Stock”) at a price of $.10 per share (the “Exercise Price”). The parties hereto acknowledge that this option is granted to Smith. 
 2. Time of Exercise. Except as expressly provided herein, this option shall vest immediately and be exercisable by Smith at any time on or after December 20, 2005 (the “Vesting Date”). This option
may be exercised from time to time, at the sole discretion of Smith and shall not expire or terminate until it has been exercised in full. 
 3. Method of
Exercise. This option shall be exercised, in whole or in part, by the delivery to the Company of written notice of such exercise, in the form attached hereto as Exhibit A, accompanied by full payment of the Exercise Price and any amounts
required to be withheld pursuant to applicable income or employment tax laws in connection with such exercise with respect to that portion of this option being exercised. The value of the Shares for purposes of calculating any taxes due shall be the
Fair Market Value of such Shares on the date of exercise. The date of proper delivery to the Company of such notice shall be the date of exercise of this option. Unless and until the Company notifies Smith to the contrary, the form attached to this
Agreement as Exhibit A shall be used to exercise this option. 
 Upon the exercise of this option, in whole or in part, Smith may pay the Exercise
Price in cash, by delivering duly endorsed certificates representing Common Stock having a Fair Market Value on the date of exercise equal to that portion of the Exercise Price being paid by delivery of such Common Stock, or through a combination of
cash and Common Stock. 
 Delivery of certificates representing the purchased Shares of Common Stock shall be made by the Company reasonably promptly
after receipt by the Company of notice and all amounts described above required to be submitted to the Company upon the exercise of this option; provided, however, that the Company’s obligation to deliver certificates may be postponed,
in the sole discretion of the Board or a committee thereof, for any period necessary to list, register or otherwise qualify the purchased Shares under Federal securities laws or any applicable state securities law. 
 The exercise, in whole or in part, of this option shall cause a reduction in the number of unexercised Shares for which this option can subsequently be exercised
equal to the number of Shares with respect to which this option is exercised. 

 4. Taxes. Smith shall be responsible for any and all taxes that may be due by him as a result of the exercise of this
option or the disposition of the Shares acquired on the exercise of this option. Smith acknowledges that the Company has not provided tax advice to him or otherwise guaranteed the tax consequences of this option or the Shares. 
 5. No Assignment. This option shall not be subject in any manner to sale, transfer, pledge, assignment or other encumbrance or disposition, whether by operation of
law or otherwise and whether voluntarily or involuntarily, except by will or the laws of descent and distribution; provided, however, that the obligations of the Company hereunder shall be binding upon any successor in interest by name
change, merger, consolidation or reorganization that results in the Company’s business being continued through another corporation or entity. 
 6. Rights
as a Shareholder. Smith shall have no rights as a shareholder of the Company with respect to any Shares subject to this option until and unless Smith shall have exercised this option with regard to such Shares. No adjustment shall be made
for dividends or other rights for which the record date is prior to the exercise of this Option by Smith. 
 7. Amendment and Modification. The terms and
conditions set forth herein may be amended only by the written consent of each of the parties hereto. 
 8. Inurement. This Agreement shall be binding
upon and shall inure to the benefit of Smith and to the benefit of the Company, including respective heirs, executors, administrators, successors and assigns. 
 9. Governing Law. This Agreement is governed by the internal laws of the State of Florida, including the conflicts of law provisions thereof, in all respects, including matters of construction, validity and performance.

 10. Investment Intent; Status as Accredited Investor. Smith is acquiring this option and the underlying Common Stock for his own account and not with
a view to a distribution of this option or the Common Stock issuable upon the exercise of this option within the meaning of Section 2(11) of the Securities Act of 1933, as amended (the “Securities Act”). Smith is the CEO of the
Company, is intimately familiar with the business and operations of the Company, and is an “accredited investor” as defined in Regulation D under the Securities Act. 
 11. Additional Requirements. Smith acknowledges that the Common Stock acquired pursuant to the exercise of this option may bear such legends as the Company deems appropriate to comply with applicable Federal or
state securities laws. In connection therewith and prior to the issuance of such Shares, Smith may be required, and hereby agrees, to deliver to the Company such other documents as may be reasonably requested by the Company to ensure compliance with
applicable Federal or state securities laws. 
 12. Registration. Smith acknowledges and agrees that the Company is under no obligation to file or
maintain a registration statement under the Securities Act relating to the shares underlying this option or the resale of those shares by Smith. 

 13. Restricted Securities. The Common Stock to be acquired by Smith upon the exercise of this option is a
“restricted security” under Rule 144 of the Securities Act. The Common Stock to be acquired by Smith upon the exercise of this option has not been registered under the Securities Act and may only be sold or disposed of pursuant to the
filing of a registration statement or pursuant to a valid exemption from such registration and shall bear a legend to that effect. The Company has no obligation to file a registration statement with respect to such Shares. 
 14. Interpretation and Administration. Smith agrees that the terms and conditions of this Agreement shall be construed by the Board or a committee of the Board, and
that any determination of the Board or such committee shall be conclusive and binding on all parties claiming an interest in this option. 
 15. not
used. 
 16. Definition of Fair Market Value. For purposes of this Agreement, “Fair Market Value” of a share as of a specified date means the
average of the closing sale prices of a share of Common Stock reported on any national securities exchange on which the Common Stock is traded for the five trading days immediately preceding the exercise date. If the Common Stock is not listed on a
national securities exchange at the time a determination of Fair Market Value is required to be made hereunder, its Fair Market Value shall be determined by the parties hereto in good faith. 
 17. No Fractional Shares. No fractional shares shall be issued upon the exercise of all or any portion of this option. 
 18. Committee of the Board. Any determination, interpretation or other action required or permitted to be taken by the Board hereunder may be taken by a committee
appointed by the Board for such purpose. 
 [END OF TEXT OF AGREEMENT] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the Effective Date set
forth hereinabove. 
  

			
	SOLOGIC, INC.
		
	By:	 	/s/ Matthew A. Veal
	Its:	 	Secretary/CFO
	
	SMITH
		
	By:	 	/s/ Carl L. Smith, III
	Its:	 	Carl L. Smith, III
	
	SPARX, INC.
		
	By:	 	/s/ Carl L. Smith, III
	Its:	 	President

 Exhibit A 
 EXERCISE OF OPTION 
 Secretary 
 Sologic, Inc. 
 1358 Fruitville Road, Suite 209 
 Sarasota, FL 34236 
 The undersigned Optionee under the Stock Option Agreement dated December 20, 2005 between Sologic, Inc. and Carl L. Smith, III (the
“Agreement”), hereby irrevocably elects to exercise the Stock Option granted in the Agreement to purchase                     
shares of Common stock of Sologic, Inc., $.001 par value (“Shares”), and herewith makes payment of $                  in exchange for the Shares.

  

					
	Dated:                         	 		 	  
	 	 		 	(Signature of Optionee)

 Date Received by Sologic, Inc.:
                                        

 Received
by:                                 
 [Note: Shares being delivered in payment of all or any part of the exercise price must be represented by certificates registered in the name of Smith or his designee and duly
endorsed by the registered owner(s) thereof.] 
  

	
	Name*(Please Print): ____________________________________________________________
	
	Home Address: _________________________________________________________________
	
	                          _________________________________________________________________
	
	Social Security No.: ______________________________________________________________

  

	*	As stock should be registered

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