EXHIBIT 10.9
 
REDEMPTION AND CONVERSION AGREEMENT

This Redemption and Conversion Agreement (this “Agreement”) is made as of
January 17, 2007, by and among Solomon Technologies, Inc. (the “Company”) and
the holders of all of the outstanding Series C Preferred Stock of the Company
(the “Holders”).

WHEREAS, by letter dated December 5, 2006 to Integrated Power Systems LLC
(“IPS”), acting as the Sellers’ Representative (as defined in the Securities
Purchase Agreement dated August 17, 2006), and pursuant to Section 6(a) of the
Certificate of Designation of Series and Determination of Rights and Preferences
of Series C Preferred Stock of the Company (the “Certificate of Designation”),
the Company notified IPS of its intent to redeem all of the 4,615,381
outstanding shares of Series C Preferred Stock on or before December 15, 2006 at
a per share price of $0.7258334 (an aggregate of $3,349,997.68 (the “Aggregate
Initial Redemption Price”)); and

WHEREAS, by letters dated December 14, 2006, IPS, on behalf of all the Holders,
agreed to accept payment of $0.7258334 per share in redemption provided such
payment was received by December 20, 2006, and tendered the Series C Preferred
Stock share certificates to the Company; and

WHEREAS, by written consent the Holders of at least 75% of the outstanding
Series C Preferred Stock, on behalf of all of the Holders, subsequently extended
the deadline for redemption to December 22, 2006; and

WHEREAS, the Company did not redeem the Series C Preferred Stock by December 22,
2006, and, pursuant to Sections 6(b) and (c) of the Certificate of Designations,
the Holders are now entitled to receive a redemption price equal to $1.1375 per
share plus accrued dividends through the date of payment (the “Increased
Redemption Price”); and

WHEREAS, the Holders acknowledge that although the Company is in the process of
completing a financing transaction in which it intends to sell to private
investors approximately $5,500,000 of convertible debentures and warrants (the
“Financing”) and by which it will receive proceeds sufficient to enable the
Company pay the Aggregate Initial Redemption Price, the proceeds of the
Financing will not be sufficient to enable the Company to pay the aggregate
Increased Redemption Price and the Company is unwilling to engage in the
Financing unless as a result the Company will be able to redeem and/or convert
all of the Series C Preferred Stock; and

WHEREAS, the parties hereto have agreed that immediately upon the closing of the
Financing the Company shall redeem, at the Increased Redemption Price and on a
pro-rata basis, that number of shares as may be redeemed with the Aggregate
Initial Redemption Price and that immediately upon such redemption the shares of
Series C Preferred Stock not so redeemed shall be converted into shares of
common stock, par value $0.001 per share, of the Company (“Common Stock”) on the
basis of one share of Common Stock for each such share of Series C Preferred
Stock.
 

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NOW, THEREFORE, in consideration of the mutual promises and covenants contained
in this Agreement, and other consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereby agree as follows:

1. Redemption. Promptly following the closing of the Financing, the Company
shall utilize a portion of the net proceeds thereof equal to the Aggregate
Initial Redemption Price to redeem, on a pro-rata basis, that number of whole
shares of Series C Preferred Stock as may be redeemed with such net proceeds at
the Increased Redemption Price. The Company shall pay the Aggregate Initial
Redemption Price to the Holders by causing such funds to be deposited into the
client funds account of the Holders’ counsel (the “Deposit Account”) in
accordance with the following wire transfer instructions:

Bank Name:
Bank of America

  100 West 33rd Street

  New York, New York 10001 

 

ABA#:
0260-0959-3

 

Account Name:
Pepe & Hazard, LLP

  IOLTA Account-Boston Office

Account Number:
941580677

 
2. Conversion. Upon deposit of the Aggregate Initial Redemption Payment in the
Deposit Account in accordance with Section 1 hereof, the Company shall, and the
Holders hereby instruct the Company to, effect the conversion of each share of
Series C Preferred Stock that is not redeemed in accordance with Section 1
hereof into one share of Common Stock.

3. Statement. Upon deposit of the Aggregate Initial Redemption Payment in the
Deposit Account in accordance with Section 1 hereof, the Company shall (i)
deliver to each Holder a written statement (the “Redemption Statement”) that
shall indicate (A) the number of shares of Series C Preferred Stock being
redeemed from each Holder, (B) the total number of shares of Common Stock
(“Conversion Shares”) to be issued to each Holder, and (C) a detailed
calculation of such numbers, (ii) instruct its transfer agent to issue
Conversion Shares to the Holders in the amounts indicated on the Redemption
Statement, and (iii) cancel the certificates for the Series C Preferred Stock.

4. Distribution of Redemption Payment and Conversion Shares. The Holders hereby
agree that upon (a) deposit of the Aggregate Initial Redemption Payment in the
Deposit Account in accordance with Section 1 hereof, (b) delivery of the
Redemption Statement as set forth in Section 2 hereof, and (c) receipt by the
Holders of the Conversion Shares, the Company shall be deemed to have duly
redeemed or converted all of the outstanding shares of Series C Preferred Stock
and the Company shall have no further liabilities or obligations to the Holders
in respect of the Series C Preferred Stock.
 
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5. Release. Effective upon (a) deposit of the Aggregate Initial Redemption
Payment in the Deposit Account in accordance with Section 1 hereof, (b) delivery
of the Redemption Statement as set forth in Section 2 hereof, and (c) receipt by
the Holders of the Conversion Shares, each of the Holders, on behalf of itself
and its successors and assigns (collectively, the “Releasors”), does hereby
forever release, discharge and acquit the Company, and each of its subsidiaries,
affiliates, officers, members, managers, agents and employees, and their
respective successors, heirs, and assigns, and each of them (collectively and
severally, “Releasees”) of and from any and all of the following in respect to
the Series C Preferred Stock: claims, demands, obligations, liabilities,
indebtednesses, breaches of contract, breaches of duty or any relationship,
acts, omissions, misfeasance, malfeasance, cause or causes of actions, debts,
sums of money, accounts, compensations, contracts, controversies, promises,
damages, costs, attorneys’ fees, losses and expenses, of every type, kind,
nature, description or character, and irrespective of how, why, or by reason of
what facts, whether heretofore, now existing or hereafter arising, or that
could, might, or may be claimed to exist, of whatever kind or name, whether
known or unknown, suspected or unsuspected, liquidated or unliquidated, each as
though fully set forth herein at length. 
 
6. Notices. Unless otherwise expressly provided in this Agreement, all notices
and other communications provided for in this Agreement shall be in writing and
shall be deemed delivered (a) when received, if delivered by hand delivery, (b)
three business days after being sent, certified or registered mail, return
receipt requested, first class postage prepaid, or (c) one business day after
being sent by nationally recognized overnight courier, addressed (i) if to the
Company, to it at 1400 L&R Industrial Boulevard, Tarpon Springs, FL 34689,
marked for the attention of the Chief Executive Officer, with a copy (which
shall not constitute notice) to Davis & Gilbert LLP, 1740 Broadway, New York, NY
10019, Attention: Ralph Norton, Esq., and (ii) if to a Holder, at its address as
set forth on the books and records of the Company, with a copy (which shall not
constitute notice ) to Pepe & Hazard LLP, 225 Franklin Street, 16th Floor,
Boston, MA 02110-2804, Attention: Stephen B. Hazard, Esq. All written notices
delivered by means other than as set forth above shall be deemed effective upon
receipt. Any party may change the address to which notices, requests, consents
or other communications hereunder are to be delivered by giving the other
parties notice in the manner set forth in this Section 6.
 
7. Choice of Law and Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to
conflict of laws principles. In the event any action, suit or proceeding is
instituted as a result of any matter or thing affecting this Agreement, the
parties hereto hereby designate New York County, New York as the proper
jurisdiction and the venue in which same is to be instituted.
 
8. Miscellaneous. This Agreement shall be binding upon the Company, the Holders
and their respective successors and permitted assigns. This Agreement may be
altered or amended only in writing signed by the Company and Holders who hold,
or held prior to the redemption and conversion described herein, at least 50% of
the shares of Series C Preferred Stock outstanding on the date hereof. If any
provision of this Agreement or the application thereof to any person or
circumstance shall be determined to be invalid or unenforceable, the remaining
provisions of this Agreement or the application of such provision to persons or
circumstances other than those to which it is held invalid or unenforceable
shall not be affected thereby and shall be valid and enforceable to the fullest
extent permitted by law. This Agreement may be executed in several counterparts
or by separate instruments, and all of such counterparts and instruments shall
constitute one agreement, binding on all of the parties hereto. Facsimile
signatures shall be deemed originals for all purposes hereunder.
 
(Remainder of this page intentionally left blank. Signature page(s) follow.)
 
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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first written above.
 

       
SOLOMON TECHNOLOGIES, INC.
 
   
   
    By:   /s/ Peter W. DeVecchis, Jr.  

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Name:  Peter W. DeVecchis, Jr.   Title:    President

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          POWER DESIGNS, INC.  
   
   
      /s/ Anthony F. Intino, II  

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By: Anthony F. Intino, II   Its: President

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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT
 
IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          INTEGRATED POWER SYSTEMS LLC  
   
   
      /s/ Stanley Young  

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By: Stanley Young   Its: President

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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT
 
IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          VANTAGE PARTNERS LLC  
   
   
      /s/ Anthony F. Intino, II  

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By: Anthony F. Intino, II   Its: President

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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT
 
IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
     
/s/ Mariano Moran

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  Mariano Moran

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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Anthony Intino

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  Anthony Intino

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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Allison Bertorelli

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  Allison Bertorelli

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          WOODLAKEN LLC  
   
   
   
/s/ Gary M. Laskowski

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By: Gary M. Laskowski
  Its: Manager

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT
 
IN WITNESS WHEREOF, the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          BRIL CORPORATION PROFIT SHARING PLAN  
   
   
   
/s/ Gary M. Laskowski

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By: Gary M. Laskowski
  Its: Manager

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

 
IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          JMC VENTURE PARTNERS LLC  
   
   
   
/s/ Michael D’Amelio

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By: Michael D’Amelio
  Its:

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF, the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          INTERNATIONAL CAPITAL PARTNERS LLC  
   
   
   
/s/ Jonathan Betts

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By: Jonathan Betts
  Its: Manager

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT
 
IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          ESTATE OF ROBERT SPARACINO  
   
   
   
/s/ Marguerite R. Sparacino

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By:  Marguerite R. Sparacino
  Its:  Executor

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT
 
IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
          HALSTEAD LLC  
   
   
   
/s/ Charles Johnston

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By: Charles Johnston
  Its: Investment Advisor

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT
 
IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Gary Laskowski

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Gary Laskowski
   

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF, the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Shannon LeRoy

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Shannon LeRoy
   

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Jonathan Betts

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Jonathan Betts
   

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Michael D’Amelio

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Michael D’Amelio
   

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Mark Sadinsky

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Mark Sadinsky
   

 
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COUNTERPART SIGNATURE PAGE
TO
REDEMPTION AND CONVERSION AGREEMENT

IN WITNESS WHEREOF,the undersigned has executed this Agreement on the day and
year first above written.
 

   
HOLDER:
       
   
   
   
/s/ Raymond Joslin

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Raymond Joslin
   

 
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