Document:

Ex-10.11 Purchase Agreement

 

Exhibit 10.11

PURCHASE AGREEMENT

THIS PURCHASE AGREEMENT (this “Agreement”) is entered into at Cleveland., Ohio, as of December 4,
2004, by and between, by and between Joe Valencic, 100% owner Questek, a sole proprietorship with
address’ located at 22821 Islamare, Lake Forrest, CA 92630 (“Seller”)and Stinger Systems, Inc. with
address’ at 1901 Roxborough Rd. Suite 118, Charlotte, NC 28211, (“Purchaser”);

RECITALS:

A. Seller is the owner of one hundred percent (100%) of the membership interests Questek, a
California Sole Proprietorship (the “Company”).

B. Purchaser desires to purchase from Seller 100% membership interest in the Company (the
“Membership Interest”) on the terms and conditions set forth in this Agreement.

C. Seller desires to sell to Purchaser the Membership Interest on the terms and conditions set
forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, and for other
good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Purchase and Sale of Membership Interest. Upon and subject to the terms and
conditions set forth herein, Seller shall sell to Purchaser and Purchaser shall purchase from
Seller the Membership Interest.

     2. Purchase Price. The aggregate purchase price for the Membership Interest (the
“Purchase Price”) shall be an amount equal to $75,000.00 and 25,000 shares of Stinger Systems,
Inc.’s common stock.

     3. Deliveries by Seller. Seller shall deliver to Purchaser the following:

	                                                       
	 	A.	 	An executed Assignment of Membership Interest substantially in the form of
Exhibit A, attached hereto and made a part hereof (the “Assignment of
Membership Interest”);
	                                                        
	 
	                                                       
	 	B.	 	Exhibit B including all inventions, and assets of Company
	                                                        
	 
	                                                       
	 	C.	 	Any other instruments or documents reasonably requested by Purchaser.
	                                                        

     4. Deliveries by Seller.

	                                                       
	 	A.	 	An executed Purchase Agreement.

	                                                        
	 
	                                                       
	 	B.	 	Any other instruments or documents reasonably requested by Seller.
	                                                        

     5. Representations and Warranties of Seller. To induce the Purchaser to purchase the
Membership Interest and enter into this Agreement, Seller hereby makes the following
representations., warranties to

 

 

Purchaser:

          (a) The Company is a Sole Proprietorship duly organized and validly existing and in full force
and effect under the laws of the State of Ca1ifornia;

          (b) The Membership Interest is free and clear of any security interest, lien, pledge or other
encumbrance;

          (c) Seller has the full power, authority and capacity to execute and deliver this Agreement
and perform their respective obligations hereunder;

          (d) This Agreement has been duly executed and delivered by Seller and is the valid and binding
obligation of Seller, enforceable against him in accordance with its terms;

          (e) Neither the execution and delivery by Seller of this Agreement nor compliance by Seller
with the terms and provisions hereof will result in a breach of any of the terms, conditions or
provisions of or require any consent or approval with respect to any judgment, order, decree or
ruling of any court or governmental entity to which Seller is subject or any agreement, license,
contract or commitment to which Seller is a party;

          (f) No consents or approvals are required to be obtained by Seller or the Company in
connection with Seller’s execution of this Agreement or the consummation by him of the transactions
contemplated hereby;

          (g) To the best of Seller’s knowledge, the liabilities of the Company are set forth on the
schedule of liabilities attached hereto as Exhibit C and made a part hereof;

          (h) To the best of Seller’s knowledge, Exhibit D contains a complete and correct list
of all intellectual property rights (including, but not limited to, patents, trademarks,
copyrights, trade secrets, know-how, etc.) which the Company owns, uses, leases to or from a
third-party or licenses to or from a third-party and shall designate whether the listed
intellectual property is owned, used, leased and/or licensed and (ii) all contracts and agreements
associated therewith. To the best of Seller’s knowledge, Company has a valid right to use all of
such intellectual property and such intellectual property is all intellectual property material to
the operation of its business as presently conducted. To the best of Seller’s knowledge, the rights
of Company in or to such intellectual property do not conflict with or infringe on the rights of
any other person~ and Company has not received any written claim or notice from any person, to such
effect. To the best of Seller’s knowledge, all of such intellectual property that is owned by
Company free and clear of any liens and encumbrances.

          (i) The Company and its members have filed all ma1erial tax returns and reports with respect
to taxes attributable to the operations of the Company which are required to be tiled and all taxes
shown to be due on such tax returns have been timely paid.

          (j) Seller does not have knowledge of any fact that has specific application to the Company
(other than general economic or industry conditions) and that may materially adversely affect the
assets, business, prospects, financial condition or results of operations of the Company that has
not

2

 

been set forth in this Agreement or the Exhibits hereto.

     6. Representations and Warranties of Purchasers. To induce Seller to enter into this
Agreement and sell the Membership Interest. Purchaser makes the fol1owing representations and
warranties to Seller: (a) this Agreement has been duly executed and delivered by Purchaser and is
the valid and binding obligation of Purchaser. enforceable against it in accordance with its terms;
(b) neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will violate any statute or law or violate or result in a breach of any of the
terms, conditions or provisions of any judgment, decree, order or ruling of any court or
governmental entity or any agreement. contract or commitment to which the Purchaser is a party or
subject to; (c) no consents or approvals are required to be obtained by Purchaser in connection
with its execution of this Agreement or the consummation by it of the transactions contemplated
hereby; (d) there are no claims, actions or proceedings pending against Purchaser; and (e)
Purchaser has had a full and fair opportunity to conduct such due diligence as they have deemed
appropriate and has had all of its inquiries answered to its satisfaction, and Purchaser is fully
satisfied with the Purchase Price and all of the terms and conditions of this transaction.

     7. Indemnification.

	                                                       
	 	A.	 	Purchaser hereby agrees to indemnify, defend and hold harmless Seller and his
respective personal representatives, heirs, beneficiaries, successors and assigns,
against any claim, loss, cost, damage, liability, expense or obligation, whether now
existing or hereafter arising, including reasonable attorneys’ fees and other
professional fees, whether or not involving third-party claims, arising from or
relating to the failure of the Purchaser to obtain any consents, licenses, governmental
authorizations or approvals required to be obtained by the Purchaser in connection with
the consummation by the Purchaser of the transactions contemplated hereby. The
foregoing indemnification obligations and the representations and warranties of
Purchaser contained herein shall survive this Agreement and the closing for .a period
of six months.
	                                                        
	 
	                                                       
	 	B.	 	Seller hereby agrees to indemnify, defend and hold harmless, Purchaser and its
successors and assigns, against any claim, loss, cost, damage, liability, expense or
obligation, whether now existing or hereafter arising, including reasonable attorneys’
fees and other professional fees, whether or not involving third-party claims, arising
from or relating to (i) the failure of Seller or the Company to obtain any consents,
licenses, governmental authorizations or approvals required to be obtained by the
Seller in connection with the consummation by Seller of the transactions contemplated
hereby, (ii) the inaccuracy of any representation of warranty of Seller contained in
this Agreement or the documents delivered in connection herewith or (iii) the
non-performance of any covenant of Seller contained in this Agreement or the documents
and agreements delivered in connection herewith. The foregoing indemnification
obligations and the representations and warranties of Seller contained herein (other
than with respect to fraud and the representations and warranties contained in
Paragraph 5(n) shall survive this Agreement and the closing for a period of six months
and the foregoing indemnification obligations with respect to fraud and the
representations and warranties contained in Paragraph 5(n) shall survive this Agreement
and the closing for the applicable statute of limitations period.
	                                                        

3

 

     8. Miscellaneous.

	                                                       
	 	A.	 	Governing Law/Jurisdiction/Venue. This Agreement shall be governed by
and construed in accordance with the laws of the State of Nevada.
	                                                        
	 
	                                                       
	 	B.	 	Execution in Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which together
shall constitute one and the same instrument. The signature page of any counterpart,
and facsimiles and photocopies thereof, may be appended to any other counterpart and
when so appended, will constitute an original.
	                                                        
	 
	                                                       
	 	C.	 	Binding Effect/Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors, beneficiaries and permitted assigns. This Agreement may
not be assigned by a party without the prior written consent of the other parties.
	                                                        
	 
	                                                       
	 	D.	 	Entire Agreement/Modification. This Agreement is the entire agreement
among the parties with respect to the subject matter hereof and thereof. There are no
representations, agreements, arrangements or understandings, oral or written, among the
parties with respect to the subject matter of such agreements other than as set forth
herein and therein. This Agreement may be modified only in a writing executed and
delivered by all of the parties.
	                                                        
	 
	                                                       
	 	E.	 	No Waiver. A waiver of any provision of this Agreement shall not be
effective unless in writing signed by the party against whom the waiver is claimed No
waiver of any provision of this Agreement shall constitute a waiver of any other
provision, whether or not similar, and no waiver shall constitute a continuing waiver
unless expressly provided in writing.
	                                                        
	 
	                                                       
	 	F.	 	Headings/Recitals. Paragraph headings contained in this Agreement are
included for convenience only and do not constitute a part of this Agreement. The
recitals to this Agreement are an integral part hereof and are incorporated herein by
reference.
	                                                        
	 
	                                                       
	 	G.	 	Severability. The provisions of this Agreement are distinct and
severable and if any provision is held to be invalid or unenforceable, such invalidity
or unenforceability will not affect the va1idity or enforceability of any other
provision of this Agreement.
	                                                        
	 
	                                                       
	 	H.	 	Legal and Other Fees. Each party hereto shall bear its own legal and
other professional fees and expenses with respect to the negotiation, execution, and
finalization of this Agreement.
	                                                        

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	SELLER:	 	PURCHASER:
	 
	 	 	 	 
	JOSEPH VALENCIC	 	STINGER SYSTEMS, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	Robert F. Gruder
	 

	 	Its:
	 	Chief Executive Officer

4Ex-10.12 Cancellation Agreement

 

Exhibit 10.12

CANCELLATION OF THAT CERTAIN LICENSING, MANUFACTURING

AND PURCHASE AGREEMENT DATED DECEMBER 4, 2002

This TWO (2) page Agreement is made, entered into and effective December 31, 2004.

Stinger Systems, Inc. shall issue to and pay C&M Partners 10,000 shares of Stinger Systems, Inc.’s
restricted common stock by January 12, 2004, and Stinger Systems, INC. sha11, also, register that
stock within 30 days of the last day of the first quarter of the year 2005, or C&M Partners may
unilaterally rescind this Agreement by written notice posted to Stinger Systems, Inc.

EDT hereby acknowledges all disclosures of any nature whatsoever cited or contained in that certain
Licensing, Manufacturing and Purchase Agreement, which is between the parties hereto and which is
dated December 4, 2002. The disclosures are incorporated herein by reference as though fully set
forth herein.

C&M Partners and Tu Corporation acknowledge that EDT may sell, solely for connection onto its
Ultron II product, any of its existing stocks of ammunition, which embody inventions specified in
the below patent and patent application and which were sold to it by Tu Corporation. At the time of
EDT’s purchase of said ammunition, EDT was licensed by C&M to manufacture, use and sell embodiments
of inventions claimed in US Patent 6,360,645 Bl, and Tu Corporation was licensed by others to
manufacture, use and sell embodiments of inventions specified in US Patent Application 10/719,131.
Both the 6,360,645 Bl Patent and the 10/7l9,131 Application were disclosed to EDT prior to January
1, 2004.

For the consideration appearing herein above, other mutual promises contained herein and for other
good and valuable cooperation acknowledged received by each party, EDT, which pursuant to a
September 23, 2004 modification of the December 4, 2002 Licensing, Manufacturing and Purchase
Agreement is Electronic Defense Technology, an Ohio Limited Liability Company and Stinger Systems,
Inc., a Nevada Corporation and first successor in interest to Electronic Defense Technology, C&M
Distributors, a California General Partnership which is also correct1y known as C&M Partners, Tu
Corporation, a Nevada Corporation, and James McNulty, Jr., the parties hereto, hereby cancel that
said certain Licensing, Manufacturing and Purchase Agreement, which is between them and which is
dated December 4, 2002 and as modified to this date. The parties hereto hereby agree that all
right, title and interest in and to the Firearm Frame Mold and Firearm Ammunition Mold 1 shall
remain with Stinger Systems, Inc.

James F. McNulty, Jr. assigned US Patents 5,841,622 and 6,575,073 to Stinger Systems. Inc. on
November 26, 2004. The Assignment’s paragraph, reading “This Assignment shall become effective if,
and only if, said Stinger Systems. Inc. pays James Francis McNulty, Jr. ONE HUNDRED THOUSAND UNITED
STATES DOLLARS ($ 100,000.00) by certified check and SEVENTY AVE THOUSAND SHARES of its Common
stock on or before December 6. 2004 and registers said stock on or before March 31, 2005”, is
hereby cancelled and of no further effect. In lieu of the cance1led paragraph the following
paragraph is substituted.

“If Stinger Systems, Inc. fails to register the SEVENTY FIVE THOUSAND SHARES of common stock by the
30th day following the last day of the first quarter of the year 2005, James Francis McNulty, Jr.

 

 

may uni1aterally rescind this Agreement.”

In Testimony whereof, each party hereto has hereunder executed this Agreement and initialed its
first page. (Signatures by facsimile transmission shall be as valid as originals.)

	 	 	 	 	 
	 

	 	 	 	 
	 	 	 
	B. Tu for Tu Corporation
	 	 	 	 

	 	 	 	 	 
	 

	 	 	 	 
	 	 	 
	Robert Gruder for EDT,
	 	 	 	 
	Electronic Defense Technology
	 	 	 	 
	And Stinger Systems, Inc
	 	 	 	 

	 	 	 	 	 
	 

	 	 	 	 
	 	 	 
	James F. McNulty, Jr. for
	 	 	 	 
	Himself, individually, and as
	 	 	 	 
	General Partner for CM Partners
	 	 	 	 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]