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Exhibit 10.2

Agreement for Purchase and Sale of Commercial Property

    This agreement is made on February 12, 2001, at San Jose, California, by
Integrated Power Chip Corporation, a corporation organized under the laws of
California, referred to in this agreement as seller, whose principal business
address is 17 Great Oaks Boulevard, Suite 101, City of San Jose, County of Santa
Clara, State of California, and Photon Dynamics, Inc., a corporation organized
under the laws of the State of California, referred to in this agreement as
purchaser, with its principal office at 6325 San Ignacio Avenue, City of San
Jose, County of Santa Clara, in this state.

RECITALS

    In consideration of the covenants and agreements of the respective parties,
as set forth in this agreement, seller agrees to sell and convey to purchaser,
and purchaser agrees to purchase and take from seller, the real property
situated at 17 Great Oaks Boulevard, the City of San Jose, County of Santa
Clara, State of California and particularly described in Exhibit A attached,
together with all improvements on it and appurtenances to it, and the articles
of equipment and other personal property permanently affixed to the real
property or improvements. The real and personal property above described is
referred to in this agreement as the property.    
 
 
Transfer to purchaser will include all right, title and interest of seller in
and to all streets, alleys, roads and avenues adjoining the real property, and
will further include any award for damaging or taking by eminent domain by
public or quasi-public authority, of the real property or any part of it.
 
 

    The following terms, provisions, and conditions are further agreed to:

SECTION I
PRICE

    The purchase price for the property is Six Million Dollars ($6,000,000.00)
payable as follows: The full amount of the purchase price, reduced by all
adjustments and credits reflected by this agreement, the escrow instructions
signed by the parties and the preliminary escrow closing statement signed by the
parties will be paid into escrow on or before the date for close of escrow in
cash or its equivalent.

SECTION II
TITLE; TENANCIES; CLOSING

    a)  Conveyance of title to the property will be by grant deed with full
covenants, executed by seller accompanied by a verified and duly adopted
resolution of the board of directors of seller, authorizing such conveyance, to
purchaser or purchaser's nominees. Title to be conveyed will be good and
marketable, subject only to the exceptions which are reflected on the First
American Title Guaranty Company title report provided to buyer and accepted by
buyer in writing within fifteen (15) days of receipt of the First American Title
Guaranty Company preliminary title report. Conveyance of title will be made on
the date identified in this agreement as the close of escrow and Title will be
evidenced by a standard form title insurance policy issued by First American
Title Guaranty Company, insuring title to property to be in purchaser or its
nominees, subject only to the matters as set forth in this agreement.

    b)  The property, at present has two occupants—seller, as owner, and buyer,
as sole tenant, under a three (3)- year lease dated September 6, 2000 which
three-year lease provides for tenant improvements to be made by the landlord
(seller), the value of which is $125,000. All right, title and interest of
seller in and to the property will be transferred to purchaser or its nominees
at the time of conveyance of title.

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SECTION III
ASSESSMENTS

    If, at the time of transfer of title, the property or any part of it is
subject to an assessment or assessments payable in installments, all such
installments not due or delinquent at the time of transfer will nevertheless be
deemed to be due and payable at such time and as liens on the real property
described in this agreement, and all such assessments will be paid and
discharged by seller.

SECTION IV
ESCROW; PRORATION; CREDITS; COSTS

    a)  Escrow will be held by First American Title Guaranty Company under
Escrow Number 51942808 conducted by Escrow Officer Dian Blair or her successor.
Such instructions as the escrow company may require, not inconsistent with the
provisions of this contract, will be signed and filed by the parties.

    b)  Escrow will close on the date which is thirty (30) days after the date
that this agreement has been signed by both of the parties provided that the
escrow company is in a position to record all documents required under this
agreement, to make disbursements provided for in this agreement, and to issue a
title insurance policy; this date is referred to in this agreement as the close
of escrow. The close of escrow may be delayed by not more than fifteen days by
written notice of either party delivered to the other party five (5) days before
the initial close of escrow date.

    c)  The following items will be prorated as of the close of escrow: rentals,
real estate taxes due but not delinquent and prepaid insurance premiums.

    d)  At the close of escrow, buyer will be credited $90,000 constituting the
return of the security deposit under the lease between buyer and seller;
however, buyer will not be credited any amount with regard to the $125,000
constituting the cost of tenant improvements required to be paid for by seller
as landlord under buyer's lease which will not have been performed by seller
prior to the close of escrow.

    e)  Closing costs will be paid in accordance with Santa Clara County
standards; the title report will be paid by seller, the escrow fee will be paid
by seller; the Santa Clara County transfer tax will be paid by seller; and, the
San Jose city tax will be paid equally by seller and buyer and any and all
brokerage commissions shall be paid by seller.

SECTION V
RISK OF LOSS; MAINTENANCE; TRANSFER OF POSSESSION

    a)  Risk of loss or damage by fire or other casualty to property or any part
of it prior to close of escrow, will be the risk of seller. In the event of such
loss or damage prior to closing, this contract will not be affected but seller
will assign to purchaser all rights under any insurance policy or policies
applicable to such loss. If action is necessary to recover under any casualty
policy, seller will grant permission to bring such action in seller's name.

    b)  Seller shall maintain an all risk policy of insurance carried by an
insurer with an A. M. Best's rating of AAA or better covering the improvements
on the property in a commercially reasonable amount but in no event less than an
amount sufficient to reconstruct the improvements on property in the event the
property is totally destroyed by a covered risk.

    (b) Improvements and personal property described in this agreement will be
maintained in their present condition prior to close of escrow by seller, wear
from normal and reasonable use and deterioration excepted.

    c)  Possession of property will be transferred at close of escrow.

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SECTION VI
COMMERCIAL ZONING

    Seller warrants that property is zoned for commercial purposes, that all of
seller's existing uses of it are lawful and within such zoning and that seller
is unaware of any proposed changes to the zoning of the property.

SECTION VII
BUYER'S CONDITIONS PRECEDENT

    a)  Buyer's obligation to pay the purchase price shall be contingent upon
buyer's satisfaction with and release of each of the following conditions
precedent. Each condition precedent will be deemed to satisfy and be deemed
released by buyer fifteen (15) days after the date this agreement has been
signed by all of the parties except that any condition precedent which is
identified in a written notice delivered to seller stating that buyer is not
satisfied with and does not release the identified condition precedent shall not
be deemed to satisfy or to be released by buyer. As to any conditions precedent
which buyer has identified in the notice referred to in this section, such
conditions precedent will only be deemed released when explicitly released by
buyer on or before the close of escrow. In the event any condition precedent has
not been removed by the close of escrow, buyer's obligations to seller under
this agreement shall terminate.

    The following shall constitute a separate conditions precedent:

•Each exception to title identified in the First American Guaranty Company title
report shall constitute a separate condition precedent;

•The seismic condition of the property;

•The soil condition of the property

•The adequacy of supply to the premises of natural gas, water and electricity;
and

•Recorded Covenants, Conditions and Restrictions applicable to the premises.

    b)  Seller grants buyer the right, at buyer's expense, to perform any
inspection, survey or testing desired by buyer with regard to determining
buyer's satisfaction with any condition precedent provided that buyer shall
indemnify and hold seller harmless with regard to any and all claims, causes of
action or damages directly resulting from buyer's inspection, survey or testing.

    c)  Seller shall provide buyer, within five (5) days of the date this
agreement is signed by all of the parties, copies of any and all reports or
summaries of inspections, surveys, testing or other forms of investigation
performed by buyer concerning the property.

SECTION VIII
NO RESTRICTION ON SALE

    In the event there is any restriction, limitation or prohibition on seller's
sale of the premises including but not limited to any temporary restraining
order, preliminary injunction or injunction, caused by or resulting from any act
or action taken by seller or any third party, buyer shall have the option within
ten (10) days of being notified of such act or action and the manner in which it
restricts, limits or prohibits seller's sale to give written notice to seller
and the escrow officer of buyer's election under this section to defer the close
of escrow until seller is no longer subject to such restriction, limitation or
prohibition.

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SECTION IX
MEDIATION FOLLOWED BY BINDING ARBITRATION

    The parties agree that any and all disputes, claims or controversies arising
out of or relating to this agreement shall be submitted to JAMS, or its
successor, for mediation, and if the matter is not resolved through mediation,
then it shall be submitted to JAMS, or its successor, for final and binding
arbitration. Either party may commence mediation by providing to JAMS and the
other party a written request for mediation, setting forth the subject of the
dispute and the relief requested. The parties will cooperate with JAMS and with
one another in selecting a mediator from JAMS' panel of neutrals, and in
scheduling the mediation proceedings. The parties covenant that they will
participate in the mediation in good faith, and that they will share equally in
the costs. All offers, promises, conduct and statements, whether oral or
written, made in the course of the mediation by any of the parties, their
agents, employees, experts and attorneys, and by the mediator or any JAMS
employee are confidential, privileged and inadmissable for any purpose including
impeachment, in any arbitration or other proceeding involving the parties,
provided that evidence that is otherwise admissible or discoverable shall not be
rendered inadmissable or non-discoverable as a result of its use in the
mediation. Either party may initiate arbitration with respect to the matters
submitted to mediation by filing a written demand for arbitration at any time
following the initial mediation session, or forty-five (45) days after the date
of filing the written request for mediation, whichever occurs first. The
mediation may continue after the commencement of arbitration if the parties so
desire. Unless otherwise agreed by the parties, the mediator shall be
disqualified from serving as arbitrator in the case. The provisions of this
clause may be enforced by any court of competent jurisdiction, and the parties
seeking enforcement shall be entitled to an award of all costs, fees and
expenses including attorney's fees, to be paid by the party against whom
enforcement is ordered. The parties further agree that any and all disputes,
claims or controversies arising out of or relating to this agreement that are
not resolved by their mutual agreement or by mediation shall be submitted to
final and binding arbitration before JAMS, or its successor, pursuant to the
United States Arbitration Act, 9 U.S.C. §1 et sequitur. The arbitration will be
conducted in accordance with the provisions of JAMS' comprehensive arbitration
rules and procedures in effect at the time of filing of the demand for
arbitration. The parties will cooperate with JAMS and with one another in
selecting an arbitrator from JAMS' panel of neutrals and in scheduling the
arbitration proceedings. The parties covenant that they will participate in the
arbitration in good faith, and that they will share equally in its costs. The
provisions of this paragraph may be enforced by any court of competent
jurisdiction and the parties seeking enforcement shall be entitled to an award
of all costs, fees and expenses including attorney's fees, to be paid by the
party against whom enforcement is ordered.

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    NOTICE: BY INITIALING THE SPACE BELOW YOU ARE AGREEING TO HAVE ALL DISPUTES,
CLAIMS OR CONTROVERSIES ARISING OUT OF OR RELATING TO THIS AGREEMENT DECIDED BY
NEUTRAL ARBITRATION AND YOU ARE GIVING UP ANY RIGHTS YOU MAY POSSESS TO HAVE
THOSE MATTERS LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE
BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL EXCEPT TO
THE EXTENT THAT THEY ARE SPECIFICALLY PROVIDED FOR UNDER THIS AGREEMENT. IF YOU
REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION YOU MAY BE
COMPELLED TO ARBITRATE UNDER FEDERAL OR STATE LAW. YOUR AGREEMENT TO THIS
ARBITRATION PROVISION IS VOLUNTARY.         WE HAVE READ AND UNDERSTAND THE
FOREGOING AND AGREE TO SUBMISSION OF ALL DISPUTES, CLAIMS OR CONTROVERSIES
ARISING OUT OF OR RELATING TO THIS AGREEMENT TO NEUTRAL ARBITRATION IN
ACCORDANCE WITH THIS AGREEMENT.    

              Party   /s/ ISAAC J. YANG   

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February 12, 2001   Party   /s/ RICHARD DISSLY   

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February 12, 2001

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SECTION X
BINDING EFFECT OF CONTRACT

    This agreement and its terms, covenants and warranties will bind and inure
to the benefit of parties to this agreement, and their respective successors and
assigns. Unless this agreement otherwise requires, the covenants of it will
survive the transfer of title.

    In witness of all the above, the parties have executed this instrument at
the place and on the date first above specified. Two (2) duplicate originals of
the contract have been signed.

SELLER   BUYER
Integrated Power Chip Corporation
 
Photon Dynamics, Inc.
By:
 
/s/ ISAAC J. YANG   

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signature
 
By:
 
/s/ RICHARD DISSLY   

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signature
Name:
 
Isaac J. Yang

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Name:
 
Richard Dissly

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Title:
 
President

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Title:
 
CFO

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Date:
 
February 12, 2001

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Date:
 
February 12, 2001

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Attestation

 

Attestation

By:

 

/s/ YONG SIK KIM   

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signature

 

By:

 

/s/ RICHARD DISSLY   

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signature
Name:
 
Yong Sik Kim

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Name:
 
Richard Dissly

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Title:
 
Secretary

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Title:
 
CFO/Secretary

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Date:
 
February 12, 2001

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Date:
 
February 12, 2001

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EXHIBIT "A"

    Description: The land referred to herein is situated in the State of
California, County of SANTA CLARA, CITY OF SAN JOSE, and is described as
follows:

PARCEL 1:

    ALL OF PARCEL NO. 2, AS SHOWN ON THAT CERTAIN MAP BEING A RESUBDIVISION OF
LOTS 10, 11 AND 12 OF TRACT 8133, FILED IN BOOK 589 OF MAPS AT PAGE(S) 9 AND 10,
AS COMBINED THROUGH LOT COMBINING APPLICATION, RECORDED FEBRUARY 28, 1989, IN
BOOK K861, PAGE 1211 OFFICIAL RECORDS, SANTA CLARA COUNTY, WHICH SAID MAP WAS
FILED FOR RECORD ON OCTOBER 8, 1997 IN BOOK 695 OF MAPS, AT PAGE(S) 1, 2 OF
OFFICIAL RECORDS, OFFICE OF THE RECORDER, COUNTY OF SANTA CLARA, STATE OF
CALIFORNIA.

    RESERVING THEREFROM AND APPURTENANT TO PARCEL 1 AS SHOWN ON THAT CERTAIN
PARCEL MAP RECORDED IN BOOK 695, PAGE(S) 1, 2, AN EASEMENT DESIGNATED AS 10 FOOT
P.S.D.E. NO. 1 AS DELINEATED ON THAT CERTAIN PARCEL MAP RECORDED IN BOOK 695,
PAGE(S) 1, 2.

    ALSO RESERVING THEREFROM AND APPURTENANT TO PARCELS 1 AND 3 AS SHOWN ON THAT
CERTAIN PARCEL MAP RECORDED IN BOOK 695, PAGE(S) 1, 2, AN EASEMENT DESIGNATED AS
10 FOOT P.S.D.E. NO. 2 AS DELINEATED ON THAT CERTAIN PARCEL MAP RECORDED IN BOOK
695, PAGE(S) 1, 2.

    ALSO RESERVING THEREFROM AN EASEMENT FOR INGRESS AND EGRESS PURPOSES OVER
THAT PORTION AS DELINEATED AS 26 FOOT I.E.E. ON THAT CERTAIN PARCEL MAP WHICH
RECORDED IN BOOK 695 AT PAGE(S) 1, 2 AS AN APPURTENANCE TO PARCELS 1 AND 3 AS
SHOWN ON THE PARCEL MAP RECORDED IN BOOK 695, PAGE(S) 1, 2.

PARCEL 2:

    AN EASEMENT FOR THE BENEFIT OF PARCEL 2 AS SHOWN ON PARCEL MAP RECORDED IN
BOOK 695, PAGE(S) 1, 2 FOR INGRESS AND EGRESS PURPOSES OVER THAT PORTION OF
PARCELS 1 AND 3 AS SHOWN AND DELINEATED AS INGRESS AND EGRESS EASEMENT ON THAT
CERTAIN PARCEL MAP RECORDED OCTOBER 8, 1997 IN BOOK 695, AT PAGE(S) 1, 2 OF
OFFICIAL RECORDS IN THE COUNTY RECORDERS OFFICE, COUNTY OF SANTA CLARA, STATE OF
CALIFORNIA.

PARCEL 3:

    AN EASEMENT APPURTENANT TO PARCEL 2 AS SHOWN ON PARCEL MAP RECORDED IN BOOK
695, PAGE(S) 1, 2 FOR PRIVATE STORM DRAINAGE OVER THAT PORTION OF PARCELS 1 AND
3 AS SHOWN AND DELINEATED AS 10 FOOT P.S.D.E. NO. 1 AND 10 FOOT P.S.D.E. NO. 2
ON THAT CERTAIN PARCEL MAP RECORDED ON OCTOBER 8, 1997 IN BOOK 695, AT PAGE(S)
1, 2 OF OFFICIAL RECORDS, OFFICE OF THE RECORDER, COUNTY OF SANTA CLARA, STATE
OF CALIFORNIA.

    ASSESSOR'S PARCEL NO.: 706-09-097 AND 706-09-098

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Exhibit 10.2