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Exhibit 10.52
  
 ASSET PURCHASE AGREEMENT
 by and between
 Catalytica Energy Systems, Inc. as Seller
 and
 Eaton Corporation as Buyer




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Appendix
 Appendix A
    
    Definitions
 Exhibits
 Exhibit A
    
    Financial StatementsExhibit B
    
    Form of Bill of SaleExhibit C
    
    Form of Instrument of AssumptionExhibit D
    
    Form of Patent AssignmentExhibit E
    
    Transition Services AgreementExhibit F
    
    Lease Assignments
 Schedules
 Schedule 1.1(a)
    
    Sub-leasesSchedule l.l(b)
    
    Fixed AssetsSchedule 1.1(c)
    
    Precious MetalsSchedule 1.1(e)
    
    Assigned ContractsSchedule 1.1(f)
    
    Registered Acquired Intellectual PropertySchedule 1.2
    
    Retained AssetsSchedule 3.2
    
    Purchase Price AllocationSchedule 5.3(a)
    
    ConflictsSchedule 5.3(b)
    
    ConsentsSchedule 5.4
    
    Title; Location of AssetsSchedule 5.5
    
    Financial Statement ExceptionsSchedule 5.6
    
    Changes in ConditionsSchedule 5.7(a)
    
    Material ContractsSchedule 5.7(c)
    
    Material Contract ExceptionsSchedule 5.8(a)
    
    Registered Acquired Intellectual PropertySchedule 5.8(b)
    
    Intellectual Property ExceptionsSchedule 5.8(d)
    
    Due Dates for Registered Acquired Intellectual PropertySchedule 5.8(g)
    
    Intellectual Property ContractsSchedule 5.10
    
    Compliance with Laws Exceptions/PermitsSchedule 5.12
    
    Condition and Sufficiency ExceptionsSchedule 5.13
    
    Prototype PurchasersSchedule 5.14
    
    Product Warranty Exceptions; Standard Terms and ConditionsSchedule 5.16
    
    EmployeesSchedule 5.17(a)
    
    Employee BenefitsSchedule 5.17(f)
    
    Benefits As a Result of TransactionSchedule 5.18
    
    Environmental ExceptionsSchedule 7.2(a)
    
    Apportionable ExpensesSchedule 9.1
    
    Transferred Employees




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Execution Copy
 ASSET PURCHASE AGREEMENT
 Agreement Seller Buyer Appendix A
   ARTICLE I
 PURCHASE AND SALE OF ASSETS
 1.1 Sale of Assets Acquired Assets
 Real Property Leases Schedule 1.1(a) Real Property Leases
 Fixed Assets Fixed Assets Schedule 1.1(b)
 Supplies Schedule 1.1(c)
 Prepaid Amounts Schedule 7.2 Section 7.2
 Contracts Schedule 1.1(e) Assigned Contracts
 Acquired Intellectual Property Acquired Intellectual Property
 2




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Schedule 1.1(f) Schedule 1.2;
 Permits Permits
 Books and Records Section 1.1(b) provided, however, provided, further,
 Warranties
 Other Intangible Assets Sections 1.1(d) 7.2
 All Other Assets
 3




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1.2 Retained Assets Retained Assets Schedule 1.2
 1.3 Non-Assignable Assets; Beneficial Ownership Article I Non-Assignable Assets Section 7.1(b)
 ARTICLE II
 ASSUMPTION OF LIABILITIES
 2.1 Assumed Liabilities Assumed Liabilities
 Assigned Contracts
 Employment Liabilities Article IX
 Other Liabilities of the Business
 Section 7.1(b)
  2.2 Retained Liabilities Retained Liabilities 
 4




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ARTICLE III
 PURCHASE PRICE
 3.1 Purchase Price Purchase Price
 3.2 Purchase Price Allocation Total Consideration Section 7.4 Schedule 3.2 Article VIII Schedule 3.2
 ARTICLE IV
 CLOSING AND DELIVERIES
 4.1 Closing Closing Closing Date
 4.2 Deliveries by Seller
      5




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4.3 Deliveries by Buyer
 Section 3.1
      ARTICLE V
 REPRESENTATIONS AND WARRANTIES OF SELLER
 Disclosure
Letter provided
 5.1 Organization and Standing
 6




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5.2 Authority, Validity and Effect General Enforceability Exceptions
 5.3 No Conflict; Required Filings and Consents
 Schedule 5.3(a) Section 5.3(b)
 Schedule 5.3(b)
 5.4 Title
 Schedule 5.4 Schedule 5.4
  7




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5.5 Financial Condition
 Exhibit A Asset and Liability Schedule Statement of Income Financial Statements Schedule 5.5(a)
  5.6 Changes in Condition
 Schedule 5.6
     8




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5.7 Material Contracts
 Schedule 5.7(a)
        9




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Schedule 5.7(c) Schedule 5.7(c) Schedule 5.7(c) Schedule 5.7(c)
 10




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Schedule 5.7(a) Section 5.7(a)
 5.8 Intellectual Property
 Schedule 1.1(f)
 Schedule 5.8(b) Schedule 5.8(b) Schedule 5.8(b) Schedule 5.8(b)
  11




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Section
5.8(c)
 Schedule 5.8(d)
    12




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Intellectual
Property Contract
 5.9 Litigation
 5.10 Compliance with Laws Schedule 5.10 Schedule 5.10
 5.11 No Gifts or Similar Benefits
 13




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5.12 Condition and Sufficiency
 5.13 Purchasers of Prototypes Schedule 5.13 Prototype Purchasers Schedule 5.13 Schedule 5.13
 5.14 Product Warranty Schedule 5.14 Schedule 5.14 Schedule 5.14
 5.15 Labor Matters
 5.16 Employees Schedule 5.16 Schedule 5.16 Schedule 5.17(a)
 14




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5.17 Employee Benefit Plans
 Schedule 5.17(a) Schedule 5.16 Seller ERISA Plans Seller Benefit Arrangements Schedule 5.17(a)
     Schedule 5.16
 5.18 Environmental Matters Schedule 5.18
  15




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Section 5.18 except to the extent of the Seller Environmental Liabilities
 5.19 Taxes
 16




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5.20 No Brokers
 ARTICLE VI
 REPRESENTATIONS AND WARRANTIES OF BUYER
  6.1 Organization and Standing
 6.2 Authority, Validity and Effect
 6.3 No Conflict; Required Filings and Consents
   6.4 Litigation
 17




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6.5 No Brokers
 ARTICLE VII
 COVENANTS
 7.1 Further Assurances; Subsequent Transfers
  provided
 18




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7.2 Prorations; Post-Closing Receipts
 Schedule 7.2(a) Apportionable Expenses
  7.3 Transfer Taxes
 7.4 Confidentiality, Non-Competition and Non-Solicitation
 Necessity
 Section 7.4
 19




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Section 7.4
 Section 7.4
 Confidentiality. Confidential Information Section 7.6(b)
 Covenant Competing Activity
 20




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Exception Section 7.4(c)
 Non-Solicitation provided, however, Section 7.4(e) Section 7.4(e)
 Acquisition Exception Section 7.4
 Modification of Covenant Sections 7.4(c) 7.5(e)
 Affiliate Section 7.4
 21




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7.5 Access to Books and Records Section 7.5 Section 7.5
 7.6 Certain IP Matters
   7.7 Environmental Covenants
 Section 7.7 Section 8.2(a)(vi) Section
8.2(b)(iv)
 22




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Section 7.5
  ARTICLE VIII
 INDEMNIFICATION
 8.1 Survival Periods
 Section 5.1 Section 5.2 Section 5.4 Section 5.17 Section 5.19 Section 5.20
 Section 6.1 Section 6.2 Section 6.5
  23




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Notification of Claims Indemnified
Party Article VIII Indemnifying
Party Dispute Notice provided
 8.2 Indemnification
 Article VIII Damages
     Section 7.3
  Article VIII
     24




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Section 8.2(a)(i)
 8.3 Third Party Claims Third Party Claim provided provided
 8.4 Threshold Section 8.2(a)(i) Threshold provided, Section 8.2(a)(i) Section 8.2(a)(ii) Section 7.4 (c) and (e) Cap
 8.5 Specific Performance Section 8.7
 25




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8.6 Exclusive Remedy Section 8.5 Article VIII Article VIII
 8.7 Arbitration of Disputes Article
VIII AAA Article VIII Section 8.7
 26




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ARTICLE IX
 EMPLOYEE BENEFIT MATTERS
 9.1 Employment Schedule 9.1 Transferred Employees
 9.2 Compensation and Employee Benefits
 In General Schedule 5.16 Article IX
 Accrued Vacation and Holiday Pay
 Service Credit Buyer Plans i.e.
 Welfare Benefit Plans Seller Welfare Plans
 27




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Final Coverage Date Buyer Welfare Plans Section 9.1 Section 9.2(d)
 9.3 COBRA
 9.4 Further Assurances
 ARTICLE X
 MISCELLANEOUS
 10.1 Expenses
 28




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10.2 Successors and Assigns provided, Section 10.2 Change of Control of Seller provided
 10.3 Third Party Beneficiaries
 10.4 Notices
  
  
  29




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provided,
however,
 10.5 Complete Agreement provided
 10.6 Construction
 10.7 Headings; References
 10.8 Amendment; Waiver
 30




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10.9 Governing Law
 10.10 Submission to Jurisdiction Section 10.4
 10.11 Severability
 10.12 Bulk Transfers
 10.13 Counterparts
 (Signatures are on the following page.)
 31




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SELLER:
    
    CATALYTICA ENERGY SYSTEMS, INC.By: /s/ Robert W. ZackName: Robert W. ZackTitle: CEOBUYER:
    
    EATON CORPORATIONBy: /s/ David S. BarrieName: David S. BarrieTitle: Authorized RepresentativeAnd by:

    /s/ Martin V. RarickName: Martin V. RarickTitle: Authorized Representative




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APPENDIX A
 DEFINITIONS
 AAA Section 8.7
 Acquired Assets Section 1.1
 Acquired Intellectual Property Section 1.1(f).
 Action
 Affiliate
 Agreement
 Ancillary Agreements
 Apportionable Expenses Section 7.2(a)
 Asset and Liability Schedule Schedule 5.5(a)
 Assigned Contracts Section 1.1(e)
 Assumed Liabilities Section 2.1
 Bill of Sale Exhibit B
 Business PCC XFC C-XFP XFP
 Business Day
 Buyer
 Buyer Environmental and Facilities Liabilities
  A-1




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provided, however
 Buyer Plans Section 9.2(c)
 Buyer Welfare Plans Section 9.2(d)
 Cap Section 8.4
 Change of Control of Seller Section 10.2
 Closing Section 4.1
 Closing Date Section 4.1
 Code
 Competing Activity Section 7.4(c)
 Consent
 A-2




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Contracts
 Damages Section 8.2(a)
 Disclosure Letter Article V
 Dispute Notice Section 8.1(d)
 Environmental Laws
 ERISA
 ERISA Affiliate
 Exclusivity Agreement
 Final Coverage Date Section 9.2(d)
 Financial Statements Section 5.5
 Fixed Assets Section 1.1(b)
 GAAP
 General Enforceability Exceptions Section 5.2
 A-3




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Governmental Authority
 Hazardous Materials
 Indebtedness
 Indemnifying Party Indemnified Party Section
8.1(d)
 Instrument of Assumption Exhibit C
 Intellectual Property
 A-4




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Intellectual Property Contract Section 5.8(g)
 Kawasaki License Agreement
 Law
 Lease Assignment Exhibit F
 Liabilities
 Lien
 Material Contract Schedule 5.7(a)
 Mountain View Facilities
 Mountain View Lease
 Non-Assignable Assets Section 1.3
 A-5




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Order
 Ordinary Course
 Party Parties
 Patent Assignment Exhibit D
 Permits Section 1.1(g)
 Permitted Liens Schedule 5.4
 Person
 Prototype Purchasers Section 5.13
 Purchase Price Section 3.1
 Real Property Leases Section 1.1(a)
 Registered Acquired Intellectual Property
 Release
 Related Persons
 A-6




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Retained Assets Section 1.2
 Retained Liabilities Section 2.2
 Schedules
 SCR Business
 Seller
 Seller Benefit Arrangements Section 5.17(a)
 Seller Environmental Liabilities Schedule 5.18
 Response
Actions
  provided, however
  Seller ERISA Plans Section 5.17(a)
 Sellers Knowledge
 A-7




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Seller Material Adverse Effect provided, however
 Seller Welfare Plans Section 9.2(d)
 Statement of Income Schedule 5.5(a)
 Tax
 Tax Returns
 Third Party Claim Section 8.3
 Threshold Section 8.4
 Total Consideration Section 3.2
 Transferred Employees Section 9.1
 Transition Services Agreement Exhibit E
 A-8