Document:

EXHIBIT 10.23

PURCHASE
AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is
made as of this 15th day of June, 2007 (the “Execution Date”), by and between
AXT, Inc., a Delaware corporation (“Seller”), and Allen and Janette Blazick,
husband and wife (collectively, “Buyer”), or their assignee pursuant to Section
14.1.

RECITALS:

A.            Seller
is the owner of the following real property (collectively, the “Property”):

(1)           All that certain real
property commonly known as 4311 Solar Way, located in the City of Fremont (the “City”),
County of Alameda, State of California, as legally described in Exhibit “A”
attached hereto, together with all easements, rights and privileges appurtenant
thereto (collectively, the “Land”);  and

(2)           The building located on
the Land (the “Building”), together with all improvements appurtenant thereto
(the Building and such improvements being hereinafter collectively referred to
as the “Improvements”).

B.            Seller
is prepared to sell and convey the Property to Buyer and Buyer is prepared to
purchase the Property from Seller, all for the purchase price and on the other
terms and conditions hereinafter set forth.

AGREEMENT:

In consideration of the mutual covenants and
agreements herein contained, and intending to be legally bound hereby, the
parties hereto agree as follows:

1.             Sale and
Purchase.  Seller hereby agrees to
sell and convey the Property to Buyer and Buyer hereby agrees to purchase and
accept the Property from Seller for the purchase price and subject to the other
terms and conditions set forth in this Agreement.

2.             Purchase Price.  The purchase price for the Property (the “Purchase
Price”) shall be Five Million Three Hundred Fifty Thousand and no/100 Dollars
($5,350,000.00), payable as follows:

2.1          Deposit.

2.1.1       Upon execution of this
Agreement and the opening of escrow, Buyer shall deliver to Chicago Title
Company (the “Escrow Agent”) at its office at 675 N. First Street, Suite 300,
San Jose, California 95112, attention: 
Sharon LaFountain, to be held in an escrow (the “Escrow”) and delivered
in accordance with this Agreement, an initial deposit in the amount of One
Hundred Thousand Dollars ($100,000) (the “Initial Deposit”).  If Buyer elects not to terminate this
Agreement during the Environmental Contingency Period (defined below), then
after the expiration of the Environmental Contingency Period the Initial
Deposit shall be deemed non-refundable except as expressly provided in Section
5.8 or Article 9 or 10 below.

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2.1.2       If Buyer elects not to
terminate this Agreement during the Due Diligence Period as provided in Section
5.2 below, then prior to the expiration of the Due Diligence Period Buyer shall
deliver to Escrow an additional deposit in the amount of Three Hundred Thousand
Dollars ($300,000) (the “Additional Deposit”) to indicate its election to waive
Buyer’s condition set forth in Section 5.2 and proceed to consummate the
purchase of the Property.  After the
expiration of the Environmental Contingency Period, the Additional Deposit
shall be deemed non-refundable except as expressly provided in Section 5.8 or
Article 9 or 10 below.

2.1.3       Each of the Initial
Deposit and the Additional Deposit (collectively, the “Deposit”) shall be
deposited into the Escrow in the form of cash, certified check, bank cashier’s
check, wire transfer or other form of readily available federally insured
funds.  The Deposit shall be held by the
Escrow Agent in an interest-bearing account.  All interest earned on the Deposit while in
the Escrow shall be deemed to be part of the Deposit and shall accrue to the
benefit of Buyer (or Seller to the extent provided in Sections 5.8
and/or 10.1 below).

2.1.4       At the Closing (as
defined in Section 7.1), the Deposit shall be applicable to the Purchase
Price.

2.2          Remainder of
Purchase Price.  At the Closing,
Buyer shall deliver to the Escrow Agent, in cash, certified check, bank cashier’s
check, wire transfer, or other form of readily available federally insured
funds, an amount equal to the Purchase Price less the Deposit plus interest
earned, if any, together with Buyer’s share of closing costs and prorations due
and payable by Buyer in accordance with this Agreement.  The Purchase Price, subject to adjustments
and apportionments set forth herein, shall be transferred through the Escrow on
the Closing Date to the order or account of Seller or such other person as
Seller may designate in writing.

3.             Seller’s
Representations, Warranties and Covenants. 
Seller represents, warrants and acknowledges to Buyer and covenants with
Buyer as follows:

3.1          Authority.  Seller is duly organized, validly existing
and in good standing under the laws of the State of California and all
documents executed by Seller shall be valid, legal and binding obligations of
Seller at Closing. No consent of any third party is required in order for
Seller to perform any of its obligations hereunder.

3.2          Contracts.  Within five (5) business days after Escrow
Agent’s receipt of the Deposit, Seller shall deliver to Buyer copies of all
construction, equipment leasing, service, equipment, supply, utilities,
maintenance, or concession or other agreements relating to the ownership, use
or operation of the Property in Seller’s possession which are currently in
force with respect to the Property (collectively, the “Contracts”).  Except as to those Contracts that Buyer
notifies Seller in writing, prior to the expiration of the Due Diligence
Period, that Buyer elects to assume at Closing, all Contracts shall be
terminated by Seller at Closing.  Such
Contracts, that Buyer elects to continue in accordance with the preceding
sentence, if assignable by Seller at no cost to Seller (collectively, the “Assigned
Contracts”), shall be assigned to and assumed by Buyer at Closing.  To Seller’s actual knowledge, the items
delivered to Buyer

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pursuant to
this Section 3.2 shall be accurate and complete copies of all of the Contracts
affecting the Property.

3.3          Leases.  Seller has not leased or licensed the
Property to a third party, and there are no other parties occupying, or with a
right to occupy, the Property.

3.4          Documents.  Within five (5) business days after Escrow
Agent’s receipt of the Deposit, Seller shall deliver to Buyer all documents in
its possession regarding the Property, including without limitation the
documents listed in Exhibit “D”, attached hereto (the “Property
Documents”).  To Seller’s actual
knowledge, the items delivered to Buyer pursuant to this Section 3.4 shall be
accurate and complete copies of all of the Property Documents affecting the
Property.  Seller also shall make
available to Buyer, in Seller’s office, all of Seller’s books and records with
respect to the Property.

3.5          Maintenance of
Property; New Leases.  Seller shall
maintain the Property in the condition existing on the date hereof, reasonable
wear and tear excepted.  During the
period from the Execution Date to the earlier of the Closing or termination of
this Agreement, Seller shall not enter into any leases, contracts or other
agreements or understandings which would be binding on the Property after the
Closing or result in any liability to Buyer upon or after Buyer’s purchase of
the Property, unless Buyer provides its written consent to Seller entering into
such agreements, which consent Buyer may withhold in its sole and absolute
discretion.

3.6          Violations.  Other than with respect to the environmental
condition of the Property as disclosed in the Property Documents, Seller has
not received any written notice that the Property is in violation of any law,
zoning or building code.

3.7          Knowledge.  When used in this Article, “Seller’s actual
knowledge” shall be limited to the actual knowledge of Seller’s employees as of
the date hereof, who have not undertaken any special duty of investigation or
inquiry with respect to the subject matter of the representations and
warranties contain in this Article.

4.             Buyer’s
Representations, Warranties and Covenants. 
Buyer hereby represents, warrants and acknowledges to Seller and
covenants with Seller as follows:

4.1          Authority.  Buyer has the power and authority to enter
into and to perform all of Buyer’s obligations pursuant to this Agreement and
to purchase the Property on the terms and conditions set forth herein. No
consent of any other party is required in order for Buyer to perform any of its
obligations hereunder.

4.2          No Conflict.  This Agreement and Buyer’s purchase of the
Property hereunder do not violate any material terms or provisions of any
contract to which Buyer is a party.

4.3          Confidentiality.  Until the Closing Date shall occur, Buyer
shall keep in confidence and not disclose any information or documents it
receives from Seller or the terms and conditions of this Agreement to any
person, firm or entity without the prior written authorization of Seller,
except that the information may be disclosed to (i) Buyer’s partners,

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directors,
officers, existing and potential financial sources, assignees, lawyers,
consultants, and representatives, including Buyer’s Agents (as defined in
Section 5.2.1 below) as needed to enable Buyer to complete its obligations or
exercise its rights hereunder, provided that Buyer obtain a written agreement
from such entities and persons to maintain the confidentiality of such
information and documents, or (ii) as required by law or by regulatory or
judicial process.

4.4          “AS IS” Purchase.  Other than as expressly set forth in this
Agreement, (a) Buyer acknowledges and agrees that Buyer is acquiring the
Property in its “AS IS” condition, WITH ALL FAULTS, IF ANY, AND WITHOUT ANY
WARRANTY, EXPRESS OR IMPLIED, and (b) neither Seller nor any agents,
representatives, or employees of Seller have made any representations or
warranties, direct or indirect, oral or written, express or implied, to Buyer
or Buyer’s Agents with respect to the condition of the Property, its fitness
for any particular purpose, or its compliance with any laws, and Buyer is not
aware of and does not rely upon any such representation.  Buyer acknowledges that the Due Diligence
Period and the Environmental Contingency Period will have afforded Buyer the
opportunity to make such inspections (or have such inspections made by
consultants) as it desires of the Property and all factors relevant to its use,
including, without limitation, the interior, exterior, and structure of any
improvements on the Property, the condition of soils and subsurfaces, and the
status of all zoning, permitting and other entitlements relevant to the use or
contemplated use of the Property.  Buyer
acknowledges that during the Due Diligence Period and Environmental Contingency
Period Buyer and Buyer’s Agents will independently and with the assistance of
Buyer’s professional advisors and consultants undertake whatever non invasive
studies, tests and investigation Buyer desires to conduct relating to the
Property (including, without limitation, economic reviews, engineering analyses,
environmental analyses and analyses of the records of any governmental or
quasi-governmental entity having jurisdiction over the Property). Except as
otherwise provided herein, Buyer is relying solely on its own investigation as
to the Property and its value and is assuming the risk that adverse physical,
economic or other conditions (including, without limitation, adverse
environmental conditions and the status of compliance with the requirements of
the Americans with Disabilities Act of 1990) may not have been revealed by such
investigation. Buyer agrees that the Property is to be sold to and accepted by
Buyer, at Closing, in the condition it is in at the end of the Environmental
Contingency Period “AS-IS.”

4.5          Release of Claims.

(a)           From and after the
Closing, Buyer hereby completely releases and forever discharges Seller and
Seller’s partners, affiliates, employees, successors, assigns, heirs, agents,
and representatives from and against all claims, liabilities, demands,
judgments, damages, losses, and costs (collectively, “Claims”) arising from or
related to the following:  (i) any
Hazardous Materials in, on, beneath, discharged from, migrating from,
discharged to or migrating to the Property, including the soil or groundwater
thereof, at any time; and (ii) any use, handling, treatment, storage,
transportation or disposal of Hazardous Materials at or from the Property after
the Closing; and (iii) any latent or patent defect affecting the Property
(collectively, the “Released Matters”). 
As used in this Agreement, the term “Hazardous Materials” shall have the
meaning set forth in Exhibit “B” attached hereto.  In connection with such waiver and
relinquishment, Buyer acknowledges that it is aware that it hereafter may
discover Claims or facts in addition to or different from those which it now
knows or believes to exist with respect to the Released Matters, but that it is
Buyer’s intention to fully, finally and

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forever to
settle and release all of the Released Matters in accordance with the
provisions of this Section 4.5, and the release set forth herein shall be and
remain in effect as a full and complete release notwithstanding the discovery
or existence of any such additional or different Claims or facts.  The foregoing release of Claims shall be
binding on Buyer and all subsequent owners, lessees and other transferees of
the Property.

(b)           In connection with
Section 4.5(a) above, Buyer expressly waives the benefits of Section 1542 of
the California Civil Code which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

Buyer’s Initials /s/
AB /s/ JB

5.             Conditions of
Buyer’s Obligations.  The Closing and
Buyer’s obligations under this Agreement to purchase the Property shall be
subject to the reasonable satisfaction, prior to the times prescribed herein,
of the following conditions, with Buyer to retain the right to waive, in
writing, in whole or in part, any of the following conditions (collectively,
the “Contingencies”) at or prior to the time prescribed herein for approval or
disapproval by Buyer:

5.1          Title Report.  Within five (5) business days after the
Execution Date, Seller shall deliver to Buyer a preliminary title report
prepared by Chicago Title Company (“Title Company”) with respect to the
Property (the “Title Report”), together with complete copies of all exceptions
set forth therein.  Buyer shall have
until 5:00 p.m. (Pacific Time) on the date which is thirty (30) days after the
Execution Date (or the next business day if such date falls on a weekend or
holiday) to notify Seller and the Escrow Agent, in writing, of Buyer’s
disapproval of any exceptions or items shown thereon and to obtain, at Buyer’s
sole cost, the commitment of the Title Company to issue the Title Policy (as
defined in Section 5.5 below), including such endorsements as Buyer may
reasonably request.  If Buyer does not
give Seller written notice of disapproval of any of the foregoing items within
the prescribed time, the Title Report and the supporting documents shall be
deemed approved (and all exceptions therein shall be deemed “Permitted
Exceptions” and this condition shall be deemed satisfied); provided, however,
Buyer may at any time during the foregoing thirty (30) day period object to any
title matters affecting the Property. 
Within five (5) days of receipt of Buyer’s notice of disapproval of any
of the foregoing items, Seller shall notify Buyer whether Seller is willing to
remove any such item which Buyer has disapproved. If Seller does not give Buyer
written notice within the prescribed period of time, Seller shall be deemed to
have elected not to remove any such item which Buyer has disapproved.  If there are exceptions which Buyer has
disapproved and which Seller is not willing to remove at Seller’s expense,
Buyer shall have until the end of the Due Diligence Period (or such five (5)
day period, whichever is later) to notify Seller in writing of Buyer’s election
to either (a) waive its disapproval and approve such exceptions, or
(b) terminate this Agreement and receive a refund of the Deposit.  If Buyer elects to waive its disapproval and
approve any such exceptions, or if Buyer does not expressly elect to terminate
by timely delivery

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of a
Termination Notice, such exceptions then shall be deemed to become Permitted
Exceptions at the Closing.

5.2          Due Diligence
Period; Environmental Contingency Period.

5.2.1        At all times during
the period commencing on the Execution Date until 5:00 p.m. (Pacific Time) on
the day which is forty five (45) days after the Execution Date, or the next
business day if such date falls on a weekend or holiday (the “Due Diligence
Period”), Buyer, its authorized agents, employees, consultants and
representatives (“Buyer’s Agents”) shall have the right to enter the Property
at reasonable times and at reasonable intervals to conduct and carry out any
and all non invasive inspections, tests, and studies as Buyer deems appropriate
or Buyer’s lender requires.  Except as
expressly permitted under Section 5.2.4 below, Buyer shall not have the right
to do any invasive testing of the Property or the Improvements located thereon
without the prior written consent of Seller, which consent may be withheld in
Seller’s sole and absolute discretion. Buyer shall provide notice to Seller of
its intent to enter the Property and provide Seller the right to accompany
Buyer on such entry.  Buyer shall have
the right to terminate this Agreement at any time prior to the expiration of
the Due Diligence Period at Buyer’s sole and absolute discretion, for any
reason whatsoever or for no reason, by delivering to Seller written notice of
Buyer’s election to terminate this Agreement no later than 5:00 p.m. (Pacific
Time) of the last day of the Due Diligence Period (the “Termination Notice”).
Buyer’s failure to deliver the Termination Notice within the Due Diligence
Period shall conclusively be considered Buyer’s approval of all the conditions
and documents in Section 5.1 and this Section 5.2, excepting only the
environmental condition of the Property. 
If Seller has not provided all of the Contracts and Property Documents
to Buyer within five (5) business days after Escrow Agent’s receipt of the
Deposit, the Due Diligence Period shall be extended for a period equal to one
(1) day for each day of Seller’s delay in providing the Contracts and Property
Documents.

Unless Buyer has elected to terminate this Agreement
during the Due Diligence Period as provided in this Section 5.2.1 or in Section
5.1 above, Buyer shall be deemed to have approved all title and survey matters
with respect to the Property and all aspects of the physical condition of the
Property, save and except the environmental condition of the Property.  Buyer shall be entitled, during the period
commencing on the Execution Date until 5:00 p.m. (Pacific Time) on the date
which is thirty (30) days after the date Seller has received all written
approvals and confirmations from all applicable governmental authorities that
ongoing environmental remediation on the Property, as disclosed in the Property
Documents, has been satisfactorily completed (such approvals and confirmations
are referred to herein as the “Closure Documents”), or the next business day if
such date falls on a weekend or holiday (such period is referred to as the “Environmental
Contingency Period”) to approve the environmental condition of the
Property.  Seller shall provide written
notice to Buyer of its receipt of the Closure Documents within three (3) days
after Seller’s receipt of the same from applicable governmental authorities
(and such notice will include a copy of such Closure Documents), and shall
notify Buyer of the expiration date of the Environmental Contingency Period
resulting from the issuance of the Closure Documents.  Buyer shall have the right to terminate this
Agreement at any time prior to the expiration of the Environmental Contingency
Period if Buyer, based on its inspections of the Property during the
Environmental Contingency Period, disapproves the environmental condition of
the Property, by delivering a Termination Notice to Seller no later

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than 5:00 p.m. (Pacific Time) of the last day of the
Environmental Contingency Period. Buyer’s failure to deliver a Termination
Notice within the Environmental Contingency Period shall conclusively be
considered Buyer’s approval of the environmental condition of the Property and
Buyer’s election to proceed with the Closing.

5.2.2       During the Due Diligence
Period, Buyer and Buyer’s Agents shall be granted a right of entry on the
Property (a) to perform such non invasive engineering, environmental and
geological reviews as Buyer shall deem appropriate, (b) examine all structural
and mechanical systems within the Improvements, (c) examine the books and
records of Seller relating to the operation of the Property, and (d) conduct
such other non invasive physical inspections and make such other reports as
Buyer shall deem appropriate for any purpose related to Buyer’s proposed use of
the Property; provided, however, that Buyer may conduct such inspections
relating to the environmental condition of the Property through the expiration
of the Environmental Contingency Period, subject to the limitations in Section
5.2.4 below. Buyer’s right of entry upon the Property shall be subject to, and
Buyer agrees to perform, each of the following conditions and covenants, all of
which shall survive the expiration or termination of this Agreement and the
delivery of the Deed (as defined in Section 7.2.1 below):

(a)           Buyer shall pay all
costs, expenses, liabilities, and charges incurred by Buyer or related to Buyer’s
entry;

(b)           Buyer, at Buyer’s
sole cost, shall repair all damage or injury caused by Buyer or Buyer’s Agents
in connection with any such inspection or entry and shall return the Property
to the condition existing prior to such entry;

(c)           Any entry upon the
Property shall be upon reasonable notice to Seller, shall be at reasonable
times and shall not interfere with the Seller’s operations on the
Property.  Seller, at its sole expense,
shall have the right to accompany Buyer and Buyer’s Agents during any entry
upon the Property and to require that Buyer and Buyer’s Agents comply with
Seller’s safety and security procedures;

(d)           Buyer shall keep
the Property free and clear of all liens arising out of the activities of Buyer
or Buyer’s Agents conducted upon the Property;

(e)           Buyer shall
indemnify and hold Seller harmless from any lien, loss, claim, liability, or
expense, including attorneys’ fees and costs, arising out of or in connection
with the activities of Buyer or Buyer’s Agents on or about the Property;

(f)            Buyer shall
provide liability insurance, with a combined single limit of liability not less
than One Million Dollars ($1,000,000), either under Buyer’s policy or such
insurance provided by Buyer’s Agents. 
Seller shall be named as an additional insured upon such insurance.  Buyer shall provide proof of such insurance
reasonably acceptable to Seller prior to, and as a condition of, any such
entry; and

(g)           Prior to performing
any invasive testing, Buyer shall obtain Seller’s written approval, which
approval may be withheld in Seller’s sole and absolute discretion, with respect
to the scope of work intended to be performed and shall provide Seller an
opportunity to confer, either directly or through Seller’s consultants, with
Buyer’s environmental

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consultants in
order to determine whether to permit any sampling or testing of surface or
subsurface soils, surface water or ground water or to refine the scope of the
work to be performed.  Seller and its
consultants shall be entitled to take “split samples” of any samples obtained
by Buyer and its consultants.  Seller
shall bear all expenses of its own environmental consultants in reviewing Buyer’s
work plan and analyzing any split samples.

5.2.3       Prior to the Closing,
all information derived from Buyer’s tests and test results shall, to the
extent permissible under existing law, remain confidential and not be disclosed
to any party other than as is necessary to consummate the transaction
contemplated hereby or to exercise Buyer’s rights hereunder including, without
limitation, Buyer’s counsel and its consultants.  Seller shall be entitled to receive copies of
all tests and test results together with the right, as a party of interest, to
be able to access the consultant’s file information and work product in the
event the Closing does not occur, unless the Closing does not occur because of
Seller’s default under this Agreement. 
Buyer shall obtain all consultants’ consent to the foregoing as a part
of any retention agreement.  Seller’s
rights shall survive the termination of this Agreement.  Buyer shall bear the costs and expenses with
respect to its feasibility studies hereunder, including, but not limited to,
all environmental matters and investigations.

5.2.4       Seller agrees that
Buyer shall have the right to perform certain invasive testing on the Property
consisting of approximately four (4) interior borings and approximately two (2)
exterior borings to test soil and groundwater; provided, however, that such
testing (i) may not be performed by Buyer until Seller has received all Closure
Documents for the Property, and (ii) shall be performed by Buyer’s consultants
within fifteen (15) days after Seller has obtained the Closure Documents.  Such testing by Buyer shall be subject to all
of the terms and conditions of this Section 5.2 other than the requirement of
Buyer’s obtaining Landlord’s consent, and, notwithstanding the “sole discretion”
standard in Section 5.2.2(g) above, subject to the requirement that Landlord’s
approval of Buyer’s work plan for such testing shall not be unreasonably
withheld.

5.3          Performance.  Seller shall have performed, observed and
complied with all covenants, agreements and conditions required by this
Agreement to be performed, observed and complied with on its part prior to or
as of the Closing hereunder.

5.4          Documents and
Deliveries.  All instruments and
documents required on Seller’s part to effectuate the Closing, as set forth
herein and the transactions contemplated hereby shall be delivered to Buyer or
the Escrow Agent, as required hereby, and shall be in form and substance
consistent with the requirements herein.

5.5          Title Policy.  At the Closing, Title Company shall have
delivered to Buyer either (a) a CLTA owner’s standard policy of title insurance
(the “Title Policy”), insuring Buyer’s fee simple title to the Property in the
amount of the Purchase Price subject only to the Permitted Exceptions, or (b)
Title Company’s irrevocable commitment to issue such policy.

5.6          Condition of
Property.  Subject to the terms and
conditions of Article 9 below, the physical condition of the Property shall be
substantially the same on the day of Closing as on the date of Buyer’s
execution of this Agreement, reasonable wear and tear excepted.

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5.7          Accuracy of
Representations.  All of the
representations and warranties of Seller contained in this Agreement shall have
been true and correct in all material respects when made, and shall be true and
correct in all material respects on the date of Closing (as defined in Section
7.1 below) with the same effect as if made on and as of such date

5.8          Failure of
Conditions.  If any conditions set
forth in this Article 5 are not satisfied or waived in writing by Buyer at or
prior to the times prescribed therein, then all rights, obligations and
liabilities of Seller and Buyer under and pursuant to this Agreement shall
terminate (except for any obligations or liabilities under this Agreement which
specifically set forth that such obligations or liabilities shall survive the
termination of this Agreement), and the Escrow Agent shall, without further
notice to or from any party, and without liability therefor, cancel and
terminate the Escrow.  Upon such
termination, the Deposit shall be paid to Seller to the extent it has become
nonrefundable in accordance with this Agreement, unless the failure of a
condition is caused solely by Seller’s breach of a representation, warranty
covenant or obligation of Seller arising under this Agreement, subject to
Section 10.2 below (a “Seller’s Breach), in which event the Deposit shall be
refunded to Buyer.

5.9          Copies of Reports.  In the event of termination of this
Agreement, Buyer shall promptly return to Seller all documentation delivered by
Seller to Buyer and, after termination of this Agreement for any reason other
than as a result of Seller’s default hereunder, Buyer shall provide copies to
Seller of all reports and studies obtained or developed by Buyer or Buyer’s
consultants with respect to the Property at no cost to Seller, and delivery of
such documents shall be a condition to any right of Buyer to a return of the
Deposit, to the extent refundable to Buyer.

6.             Conditions of
Seller’s Obligations.  The Closing
and Seller’s obligations under this Agreement to sell the Property shall be
subject to the satisfaction, prior to the times prescribed herein, of the
following conditions, with Seller to retain the right to waive in writing, in
whole or in part, any of the following conditions at or prior to the time
prescribed herein for approval or disapproval by Seller:

6.1          Accuracy of
Representations.  All of the
representations and warranties of Buyer contained in this Agreement shall have
been true and correct in all material respects when made, and shall be true and
correct in all material respects on the date of Closing with the same effect as
if made on and as of such date.

6.2          Performance.  Buyer shall have performed, observed and
complied with all covenants, agreements and conditions required by this
Agreement to be performed, observed and complied with on its part prior to or
as of the Closing hereunder.

6.3          Documents and
Deliveries.  All instruments and
documents required on Buyer’s part to effectuate the Closing and the
transactions contemplated hereby shall be delivered to Seller or the Escrow
Agent, as required hereby, shall be in form and substance consistent with the
requirements herein, and all funds to be deposited into the Escrow pursuant hereto
shall have been timely deposited.

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6.4          Failure of
Conditions.  If any conditions
precedent to Seller’s obligations hereunder are not timely satisfied or waived
in writing by Seller, as set forth in this Article 6 and including, but not
limited to, timely delivery of the Deposit or other funds required to be
deposited by Buyer into the Escrow, then Seller shall have the option,
exercisable by written notice to Buyer at or prior to the Closing, of declining
to proceed with the Closing.  In such
event, except as expressly set forth herein, all obligations and liabilities of
the parties under this Agreement shall terminate (except for any obligations or
liabilities under this Agreement which specifically set forth that such
obligations or liabilities shall survive the termination of this Agreement) and
(a) all documentation delivered to Buyer pursuant hereto shall be returned
to Seller, (b) all third party reports obtained by Buyer with respect to
the Property shall be delivered to Seller at no cost to Seller, if requested by
Seller, and (c) the Deposit shall be paid to Seller to the extent is has
become nonrefundable in accordance with this Agreement.

7.             Closing;
Deliveries.

7.1          Closing Date.  The closing of the transaction described in
this Agreement (the “Closing”) shall take place on the date which is thirty
(30) days after the expiration of the Environmental Contingency Period (or the
next business day if such date falls on a weekend or holiday) (the Closing Date”).  Upon Seller’s request, Buyer shall confirm in
writing the date on which the Environmental Contingency Period expires
hereunder and/or the Closing Date.  The
Closing shall be deemed to occur as of the moment the Deed is recorded and the
Purchase Price is disbursed to Seller.

7.2          Seller’s Closing
Deposits.  At or prior to the
Closing, Seller shall deposit the following into the Escrow for recordation
and/or delivery to Buyer at the Closing:

7.2.1       Grant
Deed.  A grant deed, duly executed
and acknowledged by Seller and in proper form for recording (the “Deed”),
subject to the Permitted Exceptions.

7.2.2       Assignment of
Contracts.  An assignment to Buyer of
all of Seller’s right, title and interest in the Assigned Contracts, if any, in
the form attached hereto as Exhibit ”C,” which shall provide for an
assumption by Buyer of all obligations of assignor thereunder from and after
the date of the Closing.

7.2.3       Contracts.  Originals or copies certified by Seller of
the Assigned Contracts, if any, which may be delivered outside of the Escrow,
at Seller’s election.

7.2.4       FIRPTA.  A certification and affidavit as required by
the Foreign Investors Property Tax Act, as amended, and the comparable
provisions of California law.

7.2.5       Other Documents.  Such resolutions, authorizations, bylaws or
other corporate/partnership documents or agreements relating to Seller as may
be reasonably requested.

7.3          Buyer’s Closing
Deposits.  At or prior to the
Closing, Buyer shall deposit into the Escrow for delivery to Seller at the
Closing the following:

 10
 

7.3.1       Balance of Purchase
Price.  The balance of the Purchase
Price in cash or by wire transfer in the amount required under Article 2
hereof for delivery to Escrow Agent.

7.3.2       Assignment of
Contracts.  The assignment of the
Assigned Contracts to be assumed by Buyer pursuant to Section 3.3 herein.

7.3.3       Other Documents.  Such other instruments and documents as
reasonably may be required to effectuate this Agreement and consummate the
transactions contemplated hereby.

8.             Apportionments;
Expenses.

8.1          Apportionments.

8.1.1       Taxes, Utilities and
Operating Expenses.  All real estate
taxes, charges and any assessments affecting the Property and all charges for
utilities, insurance and other operating expenses of the Property, if any,
shall be prorated on a per diem basis as of midnight on the date before
Closing.  If any real estate taxes,
charges or assessments or any charges for utilities, insurance and other
operating expenses of the Property have not been finally assessed or billed to
Seller as of midnight on the date before Closing, then the same shall be
adjusted at Closing based upon the most recently issued bills therefor and
shall be re-adjusted outside of the Escrow when final bills are issued.

8.1.2       Charges under
Assigned Contracts.  The unpaid
monetary obligations of Seller with respect to any of the Assigned Contracts,
if any, shall be prorated on a per diem basis as of midnight before the date of
the Closing.

8.2          Expenses.  The expenses and costs of the transactions
contemplated by this Agreement shall be borne by the parties as follows, all of
which obligations shall survive the Closing:

8.2.1       Advisors.  Subject to Section 14.10 hereof, each
party will pay all its own expenses incurred in connection with this Agreement
and the transactions contemplated hereby, including, without limitation,
(a) all costs and expenses stated herein to be borne by such party, and
(b) all of its own respective accounting, legal and appraisal fees.

8.2.2       Seller’s Expenses.  Seller shall pay at the Closing (a) the
premium attributable to a CLTA title policy for Buyer, (b) fifty percent (50%)
of all escrow fees, and (c) all city and county transfer taxes.

8.2.3       Buyer’s Expenses.  Buyer shall pay at the Closing (a) all
premiums for Buyer’s title policy over and above a CLTA title policy and all
endorsements, and (b) fifty percent (50%) of all escrow fees.

8.2.4       Other Fees.  All other Closing costs if any, shall be
divided by the parties in accordance with the custom of Alameda County.

 11
 

8.3          Possession.  Possession of the Property shall be
surrendered to Buyer at the Closing free and clear of any rights of possession
of others.

9.             Casualty and
Condemnation; Insurance.

9.1          Threshold Amount
for Termination Option.  If, at any
time prior to the date of Closing, Improvements having a replacement value of
Five Hundred Thousand Dollars ($500,000) or more are destroyed or damaged as a
result of fire or any other casualty whatsoever, or as a result of the Property
being condemned or taken by eminent domain proceedings by any public authority,
the Property’s value is reduced by Five Hundred Thousand Dollars ($500,000) or
more, then, at Buyer’s option, to be exercised by written notice to Seller,
this Agreement shall terminate, and the Deposit shall be returned to Buyer, and
except as expressly set forth herein, neither party shall have any further
liability or obligation to the other hereunder. 
Buyer shall exercise such termination right, if at all, within fifteen
(15) days after receipt of notice from Seller advising Buyer of such damage or
taking.

9.2          Allocation of
Compensation.  If there is any damage
or destruction or condemnation or taking, as above set forth, and if (a) the
resulting reduction in the value of the Property is less than Five Hundred
Thousand Dollars ($500,000), or (b) Buyer elects not to terminate this
Agreement as provided above, then Buyer shall pay the Purchase Price in full at
the Closing and the Property shall belong to Buyer, provided that (i) in the
case of a taking, all condemnation proceeds paid or payable to Seller shall be
paid or assigned to Buyer at the Closing; or (ii) in the case of a casualty,
Seller shall assign to Buyer all rights to any insurance proceeds paid or
payable under the applicable insurance policies.  In no event shall Seller have any obligation
to restore any damage to the Property caused by or arising from a condemnation
or casualty event, nor shall Buyer have the right to terminate this Agreement
as a result thereof other than as provided in Section 9.1 above.

10.          Remedies for
Buyer’s Default and Seller’s Default.

10.1        Buyer’s Default.  IN THE EVENT BUYER BREACHES OR FAILS TO
PERFORM ITS OBLIGATION TO PURCHASE THE PROPERTY UNDER THIS AGREEMENT, THEN
SELLER SHALL, AS ITS SOLE REMEDY THEREFOR, BE ENTITLED TO RECEIVE THE DEPOSIT
MADE PURSUANT TO SECTION 2 HEREOF, INCLUDING ALL INTEREST EARNED AND
ACCRUED THEREON, AS LIQUIDATED DAMAGES (AND NOT AS A PENALTY) IN LIEU OF, AND
AS FULL COMPENSATION FOR, ALL OTHER RIGHTS OR CLAIMS OF SELLER AGAINST BUYER BY
REASON OF SUCH DEFAULT.  THEREUPON THIS
AGREEMENT SHALL TERMINATE AND THE PARTIES SHALL BE RELIEVED OF ALL FURTHER
OBLIGATIONS AND LIABILITIES HEREUNDER, EXCEPT FOR THOSE OBLIGATIONS WHICH
EXPRESSLY SURVIVE CLOSING OR TERMINATION OF THIS AGREEMENT.  BUYER AND SELLER ACKNOWLEDGE THAT THE DAMAGES
TO SELLER RESULTING FROM BUYER’S BREACH WOULD BE DIFFICULT, IF NOT IMPOSSIBLE
TO ASCERTAIN WITH ANY ACCURACY, AND THAT THE LIQUIDATED DAMAGE AMOUNT SET FORTH
IN THIS SECTION REPRESENTS BOTH PARTIES’ EFFORTS TO APPROXIMATE SUCH POTENTIAL
DAMAGES.  NOTWITHSTANDING THE FOREGOING,
OR ANY OTHER PROVISION TO THE CONTRARY, THIS SECTION 10.1 SHALL IN NO WAY
LIMIT OR

 12
 

RESTRICT
SELLER’S RECOVERY UNDER SECTION 5.2 ABOVE AND/OR SECTION 14.10 BELOW.

/s/ WC Seller’s Initials                                        /s/
AB /s/ JB Buyer’s Initials

10.2        Seller Breach
Before Closing.  In the event that
the Closing does not occur as a result of a Seller’s Breach which is not cured
by Seller within five (5) days after written notice from Buyer to Seller of
such Seller’s Breach, Buyer shall be entitled to (a) bring an action for
specific performance if filed and served upon Seller within sixty (60) days
after the occurrence of such alleged breach, or (b) terminate this Agreement,
obtain a refund of the Deposit, if made, and pursue any remedies at law to
which it may be legally entitled; provided, however, that (i) Seller’s
liability for any such Seller’s Breach shall be limited to claims for which the
damages are not less than Fifty Thousand Dollars ($50,000) and shall be subject
to an aggregate maximum sum of Three Hundred Thousand Dollars ($300,000), and
(ii) Seller shall in no event have any liability for matters disclosed to Buyer
in any documents and information produced for Buyer pursuant to this Agreement
or discovered by Buyer prior to termination of this Agreement, and (iii) Seller
shall have no liability for any such Seller’s Breach unless such damage claim
is expressly asserted by Buyer in an action filed and served on Seller within
one (1) year following the termination of the Agreement.

10.3        Seller Breach After
Closing.  In the event the Closing
does occur and Buyer discovers a Seller’s Breach, (a) Seller’s liability for a
Seller’s Breach shall be limited to claims for which the damages are not less
than Fifty Thousand Dollars ($50,000) and which shall be subject to an
aggregate maximum of Three Hundred Thousand Dollars ($300,000), (b) Seller
shall in no event have any liability for matters disclosed to Buyer in
documents produced or made available to Buyer by Seller or discovered by Buyer
prior to the Closing if Buyer elects to proceed to close this transaction
notwithstanding the disclosure or discovery of such matters prior to the
Closing, and (c) Seller shall have no liability for any Seller’s Breach unless
such damage claim is asserted by Buyer in an action filed and served on Seller within
one (1) year following the Closing.

11.          Further
Assurances.  Seller and Buyer each
agrees to perform such other acts, and to execute, acknowledge and deliver,
prior to, at or subsequent to the Closing, such other instruments, documents
and other materials as the other may reasonably request and as shall be
necessary in order to effect the consummation of the transactions contemplated
hereby.

12.          Notices.  All notices and other communications provided
for herein shall be in writing and shall be sent to the address set forth below
(or such other address as a party may hereafter designate for itself by notice
to the other parties as required hereby) of the party for whom such notice or
communication is intended:

If to Seller:

AXT, Inc.

4281 Technology Drive

Fremont, California  94538

Attn:  Wilson Cheung 

Fax:  (510) 438-4793

Phone:  (510) 438-4735

 13
 

With a copy to:

DLA Piper US LLP

2000 University Avenue

East Palo Alto, California  94303

Attn:       Austin
Stewart, Esq.

Fax:         (650) 833-2001

Phone: (650) 833-2250

If to Buyer:

Allen &
Janette Blazick

c/o Olympic Screen
Crafts & Lithography

44800 Industrial
Drive

Fremont, California  94538

Fax:  (510) 657-1015

Phone:  (510) 657-2600

Any such notice or communication shall be sufficient
if sent by registered or certified mail, return receipt requested, postage
prepaid; by hand delivery; by overnight courier service; or by telecopy with an
original by regular mail. Any such notice or communication shall be effective
when delivered to the office of the addressee or upon refusal of such delivery.

13.          Brokers.  Seller is represented by CB Richard Ellis (“Seller’s
Broker”), and Buyer is not represented by any broker.  If and when the Closing occurs, Seller shall
pay a brokerage commission equal to 3.5% of the Purchase Price to Seller’s
Broker pursuant to a separate agreement with Seller’s Broker.  Except for the Seller’s Broker set forth
herein, each party represents to the other that it has not dealt with any
broker, agent, or finder for which a commission or fee is payable in connection
with this Agreement.  Each party shall
indemnify, defend, and hold harmless the other party from any claims, demands,
or judgments for commissions or fees based on the claimant’s representation or
alleged representation of the indemnifying party in this transaction.  The provisions of this Section 14 shall
survive the Closing or the termination of this Agreement.

14.          Miscellaneous.

14.1        Assignability.  Buyer shall have the right to assign its
rights under this Agreement to a corporation, partnership, limited liability
company, tenancy-in-common, or other entity in which Buyer holds, directly or
indirectly, a fifty percent (50%) or greater interest and which is controlled
by Buyer (i.e., Buyer has the right to direct the management and operation of
such entity).  Except as expressly set
forth herein, Buyer may not assign or transfer all or any portion of its rights
or obligations under this Agreement to any other individual, entity or other
person without the consent thereto by Seller, which may be withheld in Seller’s
absolute discretion.

 14

14.2        Governing Law;
Parties in Interest.  This Agreement
shall be governed by the law of the State of California and shall bind and
inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors, assigns and personal representatives.

14.3        Recording.  Neither this Agreement nor any notice or
memorandum hereof shall be recorded in any public record.  A violation of this prohibition shall
constitute a material breach of this Agreement.

14.4        Time of the Essence.  Time is of the essence of this Agreement.

14.5        Headings.  The headings preceding the text of the
sections and subsections hereof are inserted solely for convenience of
reference and shall not constitute a part of this Agreement, nor shall they
affect its meaning, construction or effect.

14.6        Counterparts.  This Agreement may be executed simultaneously
in counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

14.7        Exhibits.  All Exhibits which are referred to herein and
which are attached hereto or bound separately and initialed by the parties are
expressly made and constitute a part of this Agreement.

14.8        Survival.  Unless otherwise expressly stated in this
Agreement, the warranties, representations and covenants of Seller and Buyer
shall terminate as of the Closing and shall be deemed to have merged with the
Deed.  The warranties, representations
and covenants of Article 3 (subject to the limitations in Section 3.7 and
Article 10), Article 4, Sections 5.2.2, 5.2.3, 5.9, 9.2, and
Articles 10, 11 & 13 and Section 14.10 hereof shall survive the
Closing or any earlier termination of this Agreement.

14.9        Entire Agreement;
Amendments.  This Agreement and the
Exhibits hereto set forth all of the promises, covenants, agreements,
conditions and undertakings between the parties hereto with respect to the
subject matter hereof, and supersede all prior and contemporaneous agreements
and understandings, inducements or conditions, express or implied, oral or
written, except as contained herein. 
This Agreement may not be changed orally but only by an agreement in
writing, duly executed by or on behalf of the party or parties against whom
enforcement of any waiver, change, modification, consent or discharge is
sought.

14.10      Attorneys’ Fees.  If there is any legal action or proceeding
between Seller and Buyer arising from or based upon this Agreement, the
unsuccessful party to such action or proceeding shall pay to the prevailing
party all costs and expenses, including reasonable attorneys’ fees and
disbursements incurred by the prevailing party in such action or proceeding and
in any appeal in connection therewith, and such costs, expenses, attorneys’
fees and disbursements shall be included in and as part of such judgment.

14.11      Documentary Transfer
Tax.  Either party shall, at the time
of recording the Grant Deed, in accordance with California Revenue and Taxation
Code Section 11932, be entitled to require that the amount of the
documentary transfer tax due be shown on a separate paper which shall be
affixed to the Grant Deed subsequent to recording.

 15
 

14.12      Tax Deferred Exchange:  Each party agrees to cooperate with the other
party for the purpose of effecting a tax deferred exchange pursuant to Internal
Revenue Code Section 1031.  Buyer and
Seller agree that the consummation of this Agreement is not predicated or
conditioned upon the completion of any such exchange and such exchange shall
not delay the Close of Escrow hereunder. 
Neither party shall incur any additional liability or financial
obligation (including legal fees) as a consequence of the other party’s
contemplated exchange and the exchanging party agrees to hold the other party
harmless from any liability that may arise from the other party’s participation
therein.  In no event shall the
non-exchanging party be required to take title to any property other than the
Property.

15.          Escrow Agent.  Escrow Agent shall hold the Deposit in
accordance with the terms and provisions of the escrow instructions to be given
to Escrow Agent by the parties in a form consistent with this Agreement.

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

	
  BUYER:

  	
   

  
	
   

  
	
   

  
	
  /s/ Allen
  Blazick

  	
   

  
	
  ALLEN BLAZICK

  
	
   

  
	
   

  
	
  /s/ Janette
  Blazick

  	
   

  
	
  JANETTE BLAZICK

  
	
   

  
	
   

  
	
  SELLER:

  	
   

  
	
   

  
	
  AXT, INC.,

  
	
  a Delaware
  corporation

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Wilson W.
  Cheung

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Chief Financial
  Officer

  	
   

  
					

 

 16
 

ACKNOWLEDGEMENT

Escrow Holder executes
this Agreement below solely for the purpose of acknowledging that it agrees to
be bound by the provisions hereof to the extent applicable to the express obligations of Escrow Holder hereunder.

ESCROW
HOLDER:

CHICAGO
TITLE COMPANY

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  

 

 17

EXHIBIT A

LEGAL DESCRIPTION OF THE REAL PROPERTY

The Land referred
to herein is situated in the City of Fremont, County of Alameda, State of
California, and is described as follows:

Lots 16 and 20 of
Tract 4390, filed September 15, 1980, in Map Book 120, at Pages 96 through 98,
inclusive, Alameda County Records.

APN:  525-1652-012-01

 1

EXHIBIT B

DEFINITION OF HAZARDOUS MATERIALS

The term “Hazardous Materials” means material,
waste, chemical, compound, substance, mixture, or byproduct that is identified,
defined, designated, listed, restricted or otherwise regulated under
Environmental Laws (as defined hereinbelow) as a “hazardous constituent,” “hazardous
substance,” “hazardous material,” “extremely hazardous material,” “hazardous
waste,” “acutely hazardous waste,” “hazardous waste constituent,” “infectious
waste,” “medical waste,” “biohazardous waste,” “extremely hazardous waste,” “pollutant,”
“toxic pollutant,” or “contaminant,” or any other formulation intended to
classify substances by reason of properties that are deleterious to the
environment, natural resources or public health or safety including, without
limitation, ignitability, corrosiveness, reactivity, carcinogenicity, toxicity,
and reproductive toxicity.  The term “Hazardous
Materials” shall include, without limitation, the following:

(i) A “Hazardous Substance”, “Hazardous Material”, “Hazardous
Waste”, or “Toxic Substance” under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, 42 U.S.C.  Section 9601, et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. Section 5101, et seq. or the Solid
Waste Disposal Act, 42 U.S.C. Section 6901, et seq., including any regulations
promulgated thereunder, as any of the foregoing may be amended;

(ii) An “Acutely Hazardous Waste”, “Extremely
Hazardous Waste”, “Hazardous Waste”, or “Restricted Hazardous Waste”, under
Section 25110.02, 25115, 25117 or 25122.7 of the California Health and Safety
Code, or is listed pursuant to Section 25140 of the California Health and
Safety Code, as any of the foregoing may be amended;

(iii) A “Hazardous Material”, “Hazardous Substance” or
“Hazardous Waste” under Section 25260, 25281, 25316, 25501, or 25501.1 of the
California Health and Safety Code, as any of the foregoing may be amended;

(iv) “Oil” or a “Hazardous Substance” under Section
311 of the Federal Water Pollution Control Act, 33 U.S.C.  Section 1321, as may be amended, as well as
any other hydrocarbonic substance, fraction, distillate or by-product;

(v) Any substance or material defined, identified or
listed as an “Acutely Hazardous Waste,” “Extremely Hazardous Material”, “Extremely
Hazardous Waste”, “Hazardous Constituent”, 
“Hazardous Material”, “Hazardous Waste”, “Hazardous Waste Constituent”,
or “Toxic Waste” pursuant to Division 4.5, Chapters 10 or 11 of Title 22
of the California Code of Regulations, as any of the foregoing may be amended;

(vi) Any substance or material listed by the State of
California as a chemical known by the State to cause cancer or reproductive
toxicity pursuant to Section 25249.8 of the California Health and Safety Code,
as may be amended;

 1
 

(vii) A “Biohazardous Waste” or “Medical Waste” under
Section 117635 or 117690 of the California Health and Safety Code, as may be
amended;

(viii) Polychlorinated biphenyls, asbestos, and any
asbestos containing material; and/or

(ix) A substance that, due to its characteristics or
interaction with one or more other materials, wastes, chemicals, compounds,
substances, mixtures, or byproducts, damages or threatens to damage the
environment, natural resources or public health or safety, or is required by any
law or public entity to be remediated, including remediation which such law or
public entity requires in order for the property to be put to any lawful
purpose.

As used herein, the term “Environmental Laws” means
any applicable foreign, federal, state, or local law, statute, regulation,
rule, ordinance, permit, prohibition, restriction, license, order, requirement,
agreement, consent, or approval, or any decision, opinion, determination,
judgment, directive, decree or order of any executive, administrative or
judicial authority at any applicable foreign, federal, state or local level
(whether now existing or subsequently adopted or promulgated) relating to
pollution or the protection of the environment, ecology, natural resources or
public health and safety.

 2

EXHIBIT C

ASSIGNMENT AND
ASSUMPTION OF CONTRACTS

This Assignment and Assumption of Contracts (“Assignment
of Contracts”) is entered as of this        
day of                 ,
200   , by and between                    ,
a                    
(“Assignor”), and                    
(“Assignee”).

The parties make this Assignment of Contracts on the
basis of the following facts, intentions and understandings:

A.            Assignor
shall convey contemporaneously herewith to Assignee certain real property and
all improvements thereon (the “Property”) located at                    ,
in the City of                    ,
California, as more particularly described in Exhibit “A” attached to that
certain Purchase and Sale Agreement (the “Contract of Sale”) dated                    ,
200   , by and between Assignor, as “Seller”, and Assignee, as “Buyer”.

B.            Assignor
has previously entered into various contracts identified on Schedule “1” hereto
(the “Contracts”) that Assignee has agreed in writing to assume.

C.            Assignor
and Assignee now wish to enter into this Assignment of Contracts from Assignor
to Assignee.

NOW, THEREFORE, in consideration of the mutual
covenants and promises of the parties, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

1.             Assignment.  Assignor hereby assigns all of Assignor’s
right, title and interest in and to the Contracts to Assignee.

2.             Assumption.  Assignee accepts the assignment from Assignor
and hereby assumes all of the Assignor’s obligations, duties, responsibilities
and liabilities with respect to the Contracts arising from and after the date
hereof and agrees to pay, perform and discharge, when due, all of the duties
and obligations on the part of Assignor to be paid, performed or discharged in
connection with the Contracts from and after the date hereof.

 1
 

IN WITNESS WHEREOF, the
parties hereby have executed this Assignment and Assumption of Contracts that
day and year first above written.

	
  ASSIGNOR:

  
	
   

  
	
   

  	
   

  
	
  a

  	
   

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
  ASSIGNEE:

  
	
   

  
	
   

  	
   

  
	
  a

  	
   

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
						

 

 2
 

Schedule 1

Contracts

 3

EXHIBIT D

PROPERTY DOCUMENTS

Pursuant to Section 3.4
of the Agreement, Seller shall provide to Buyer documents within the following
categories, to the extent in Seller’s possession and to the extent such
Property Documents are non-proprietary and non-confidential:

	
  A.

  	
  Current Legal Description of Property (See Exhibit
  “A”, attached hereto);

  
	
   

  	
   

  
	
  B.

  	
  Current Preliminary Title Report for Property;

  
	
   

  	
   

  
	
  C.

  	
  Plans, drawings and specifications respecting the
  Improvements, and any toxic soil reports, engineering and architectural
  studies, grading plans, topographical maps and similar data respecting the
  Property;

  
	
   

  	
   

  
	
  D.

  	
  Copies of service contracts, maintenance contracts,
  management contracts and warranties relating to the Property; and

  
	
   

  	
   

  
	
  E.

  	
  Copies of licenses, permits, maps, certificates of
  occupancy, building inspection approval and covenants, conditions and
  restrictions respecting the Property.

  

 

 1EXHIBIT
10.1

Tatum, LLC

Interim Executive Services
Agreement

June 15, 2007

Mr. Roger
Rowe

Chief Financial
Officer

InFocus
Corporation

27500 SW Parkway
Avenue

Wilsonville, OR,
USA 97070-8238

Dear Roger:

Tatum, LLC (“Tatum”)
understands that InFocus Corporation (“the Company”) desires to engage a
partner of Tatum to serve as interim chief financial officer.  This
Interim Executive Services Agreement sets forth the conditions under which such
services will be provided.

Services; Fees

Tatum will make
available to the Company Mark Perry (the “Tatum Partner”) beginning on June 19,
2007 (“Beginning Date”), who will serve as chief financial officer of the Company. 
The Tatum Partner will become an employee and, if applicable, a duly
elected or appointed officer of the Company and subject to the supervision and
direction of the CEO of the Company (or Acting COO in the absence of a CEO),
the board of directors of the Company, or both. 
Tatum will have no control or supervision over the Tatum Partner.  The CFO will have full and independent access
to the audit committee through the audit chair or to the independent lead
director should fiduciary or ethical issues arise.

The Company will
pay the Tatum Partner directly a salary of $13,846.15 every two weeks  (“Salary”).  In
addition, the Company will pay directly to Tatum a fee of $3,461.54 every two
weeks (“Fees”) as partial compensation for resources provided.

The Company will
have no obligation to provide the Tatum Partner any health or major medical
benefits, stock, or bonus payments.  The
Tatum Partner will remain on his or her current medical plan.

As an employee,
the Tatum Partner will be eligible for vacation accrued at a rate of 1.67 days
per month worked and holidays consistent with the Company’s policy as it applies
to senior management, and the Tatum Partner will be exempt from any delay
periods otherwise required for eligibility.

Payments; Deposit

Payments to Tatum should
be made by direct deposit through the Company’s payroll, or by an automated
clearing house (“ACH”) payment at the same time as payments are made to the
Employee.  Only if such payment methods are
not available, payment may be made by check, but at the same time as payments
are made to the Employee,

The Company will
reimburse the Tatum Partner directly for out-of-pocket expenses incurred by the
Tatum Partner in providing services hereunder to the same extent that the
Company is responsible for such expenses of senior managers of the Company.  Such reimbursable expenses will include
weekly air travel between Denver, Colorado and Portland, Oregon or such other
location the Tatum Partner is working in on behalf of the Company, reasonable
lodging while working outside of Denver, Colorado, a reasonable rental car or
taxi fares while working outside of Denver, Colorado, and a per diem of $45
while working outside of Denver, Colorado.

Company agrees to
pay Tatum and to maintain a security deposit of $37,500 for the Company’s
future payment obligations to both Tatum and the Tatum Partner under this
agreement (the “Deposit”).  If the
Company breaches this agreement and fails to cure such breach as provided in
this agreement, Tatum will be entitled to apply the Deposit to its damages
resulting from such breach.  Upon
termination or expiration of this agreement, Tatum will return to the Company
the balance of the Deposit remaining after application of any amounts to
unfulfilled payment obligations of the Company to Tatum or the Tatum Partner as
provided for in this agreement.

Converting
Interim to Permanent

The Company will have the opportunity to make
the Tatum Partner a permanent member of Company management at any time during
the term of this agreement by entering into another form of Tatum agreement,
the terms of which will be negotiated at such time.

Hiring Tatum Partner Outside
of Agreement

During the twelve
(12)-month period following termination or expiration of this agreement, other
than in connection with another Tatum agreement, the Company will not employ
the Tatum Partner, or engage the Tatum Partner as an independent contractor, to
render services of substantially the same nature as those to be performed by
the Tatum Partner as contemplated by this agreement. The parties recognize and
agree that a breach by the Company of this provision would result in the loss
to Tatum of the Tatum Partner’s valuable expertise and revenue potential and
that such injury will be impossible or very difficult to ascertain.
 Therefore, in the event this provision is breached, Tatum will be
entitled to receive as liquidated damages an amount equal to forty-five percent
(45%) of the Tatum Partner’s Annualized Compensation (as defined below), which
amount the parties agree is reasonably proportionate to the probable loss to
Tatum and is not intended as a penalty.  If, however, a court or
arbitrator, as applicable, determines that liquidated damages are not
appropriate for such breach, Tatum will have the right to seek actual damages.
 The amount will be due and payable to Tatum upon written demand to the
Company.  For this purpose, ‘‘Annualized Compensation’’ will mean monthly
Salary equivalent to what the Tatum Partner would receive on a full-time basis
multiplied by twelve (12), plus the maximum amount of any bonus for which
the Tatum Partner was eligible with respect to the then current bonus year.

Term & Termination

Effective upon twenty-one
(21) days’ advance written notice, either party may terminate this agreement,
such termination to be effective on the date specified in the notice, provided
that such date is no earlier than twenty-one (21) days after the date of
delivery of the notice.  Tatum will
continue to render services and will be paid during such notice period.

Tatum retains the
right to terminate this agreement immediately if (1) the Company is engaged in
or asks the Tatum Partner to engage in or to ignore any illegal or unethical
activity, (2) the Tatum Partner dies or becomes disabled, (3) the Tatum Partner
ceases to be a partner of Tatum for any other reason, or (4) upon written
notice by Tatum of non-payment by the Company of amounts due under this
agreement.  For purposes of this
agreement, disability will be as defined by the applicable policy of disability
insurance or, in the absence of such insurance, by Tatum’s management acting in
good faith.

Should the Company
elect to terminate this Agreement prior to three (3) months following the
Beginning Date, the Company agrees to pay on the date of termination, an Early
Termination Fee in an amount such that total Salary, Fees and Early Termination
Fee paid shall total $2,500 per day worked (in addition to any reimbursable
out-of-pocket expenses as provided for above).

In the event that
either party commits a breach of this agreement, other than for reasons
described in the above paragraph, and fails to cure the same within seven (7)
days following delivery by the non-breaching party of written notice specifying
the nature of the breach, the non-breaching party will have the right to
terminate this agreement immediately effective upon written notice of such
termination.

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Insurance

The Company will
provide Tatum or the Tatum Partner with written evidence that the Company
maintains directors’ and officers’ insurance in an amount reasonably acceptable
to the Tatum Partner at no additional cost to the Tatum Partner, and the
Company will maintain such insurance at all times while this agreement remains
in effect.  Furthermore,
the Company will maintain such insurance coverage with respect to occurrences
arising during the term of this agreement for at least three years following
the termination or expiration of this agreement or will purchase a directors’
and officers’ extended reporting period, or “tail,” policy to cover the Tatum
Partner.

Disclaimers, Limitations of Liability & Indemnity

Tatum assumes no responsibility or liability under this agreement other
than to render the services called for hereunder and will not be responsible
for any action taken by the Company in following or declining to follow any of
Tatum’s advice or recommendations.  Tatum
represents to the Company that Tatum has conducted its standard screening and
investigation procedures with respect to the Tatum Partner becoming a partner
in Tatum, and the results of the same were satisfactory to Tatum.  Tatum disclaims all other warranties, either
express or implied.  Without limiting the
foregoing, Tatum makes no representation or warranty as to the accuracy or
reliability of reports, projections, forecasts, or any other information
derived from use of Tatum’s resources, and Tatum will not be liable for any claims
of reliance on such reports, projections, forecasts, or information. Tatum will
not be liable for any non-compliance of reports, projections, forecasts, or
information or services with federal, state, or local laws or regulations.  Such reports, projections, forecasts, or
information or services are for the sole benefit of the Company and not any
unnamed third parties.

In the event that
any partner of Tatum (including without limitation the Tatum Partner to the
extent not otherwise entitled in his or her capacity as an officer of the
Company) is subpoenaed or otherwise required to appear as a witness or Tatum or
such partner is required to provide evidence, in either case in connection with
any action, suit, or other proceeding initiated by a third party or by the
Company against a third party, then the Company shall reimburse Tatum for the
costs and expenses (including reasonable attorneys’ fees) actually incurred by
Tatum or such partner and provide Tatum with compensation at Tatum’s customary
rate for the time incurred.

The Company agrees
that, with respect to any claims the Company may assert against Tatum in
connection with this agreement or the relationship arising hereunder, Tatum’s
total liability will not exceed two (2) months of Fees.

As a condition for
recovery of any liability, the Company must assert any claim against Tatum
within three (3) months after discovery or sixty (60) days after the
termination or expiration of this agreement, whichever is earlier.

Tatum will not be
liable in any event for incidental, consequential, punitive, or special
damages, including without limitation, any interruption of business or loss of
business, profit, or goodwill.

Arbitration

If the parties are
unable to resolve any dispute arising out of or in connection with this
agreement, either party may refer the dispute to arbitration by a single
arbitrator selected by the parties according to the rules of the American
Arbitration Association (“AAA”), and the decision of the arbitrator will be
final and binding on both parties.  Such
arbitration will be conducted by the Atlanta, Georgia, office of the AAA.  In the event that the parties fail to agree
on the selection of the arbitrator within thirty (30) days after either party’s
request for arbitration under this paragraph, the arbitrator will be chosen by
AAA.  The arbitrator may in his
discretion order documentary discovery but shall not allow depositions without
a showing of compelling need.  The
arbitrator will render his decision within ninety (90) days after the call for
arbitration.  The arbitrator will have no
authority to award punitive damages. 
Judgment on the award of the arbitrator may be entered in and enforced
by any court of competent jurisdiction. 
The arbitrator will have 

 3
 

no authority to
award damages in excess or in contravention of this agreement and may not amend
or disregard any provision of this agreement, including this paragraph.  Notwithstanding the foregoing, either party
may seek appropriate injunctive relief from a court of competent jurisdiction,
and either party may seek injunctive relief in any court of competent
jurisdiction.

Miscellaneous

Tatum will be
entitled to receive all reasonable costs and expenses incidental to the
collection of overdue amounts under this Resources Agreement, including but not
limited to attorneys’ fees actually incurred.

The
Company agrees to allow Tatum to use the Company’s logo and name on Tatum’s
website and other marketing materials for the sole purpose of identifying the
Company as a client of Tatum.  Tatum will
not use the Company’s logo or name in any press release or general circulation
advertisement without the Company’s prior written consent.

Neither the
Company nor Tatum will be deemed to have waived any rights or remedies accruing
under this agreement unless such waiver is in writing and signed by the party
electing to waive the right or remedy. 
This agreement binds and benefits the respective successors of Tatum and
the Company.

Neither party will
be liable for any delay or failure to perform under this agreement (other than
with respect to payment obligations) to the extent such delay or failure is a
result of an act of God, war, earthquake, civil disobedience, court order,
labor dispute, or other cause beyond such party’s reasonable control.

The provisions
concerning payment of compensation and reimbursement of costs and expenses,
limitation of liability, directors’ and officers’ insurance, and arbitration
will survive the expiration or any termination of this agreement.

This agreement
will be governed by and construed in all respects in accordance with the laws
of the State of Georgia, without giving effect to conflicts-of-laws principles.

The terms of this
agreement are severable and may not be amended except in writing signed by the
party to be bound.  If any portion of
this agreement is found to be unenforceable, the rest of the agreement will be
enforceable except to the extent that the severed provision deprives either
party of a substantial benefit of its bargain.

Nothing in this
agreement shall confer any rights upon any person or entity other than the
parties hereto and their respective successors and permitted assigns and the
Tatum Partner.

Each person
signing below is authorized to sign on behalf of the party indicated, and in
each case such signature is the only one necessary.

Bank Lockbox Mailing Address for Deposit and Fees:

Tatum, LLC

P.O. Box 403291

Atlanta, GA  30384-3291

Electronic Payment Instructions for Deposit and Fees:

	
  Bank Name: Bank of America

  	
   

  
	
  Branch: Atlanta

  	
   

  
	
  Routing Number:

  	
  For ACH Payments: 061 000 052

  
	
   

  	
  For Wires: 026 009 593

  
	
  Account Name:
  Tatum, LLC

  	
   

  
	
  Account Number:
  003 279 247 763

  	
   

  
	
  Please reference
  InFocus in the body of the wire.

  	
   

  
			

 

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Please
sign below and return a signed copy of this letter to indicate the Company’s
agreement with its terms and conditions.

We
look forward to serving you.

Sincerely yours,

	
  TATUM, LLC

  	
   

  	
  Acknowledged and agreed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  InFocus Corporation

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature

  
	
  (Print name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print name)

  
	
  Area Managing
  Partner for TATUM, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Title)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Date)

  

 

 5

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