Document:

Exhibit 10.12

    
      
        

      

    

    
       

       

      ASSET
        PURCHASE AGREEMENT

       

      BY
        AND BETWEEN

       

      INTERNATIONAL
        RECTIFIER CORPORATION

       

      AND

       

      APA
        ENTERPRISES, INC.

       

      ________________

       

      Dated
        as of March 9, 2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF CONTENTS

       

      
        	 	 	
                Page

              
	 	 	 
	
                SECTION
                  1.

              	
                PURCHASE
                  AND SALE OF ASSETS

              	
                1

              
	
                1.1

              	
                 
                  Purchase and Sale of Assets.

              	
                1

              
	
                1.2

              	
                 
                  Purchase Price

              	
                2

              
	
                1.3

              	
                 
                  Allocation of Purchase Price

              	
                2

              
	
                SECTION
                  2

              	
                ADDITIONAL
                  AGREEMENTS

              	
                2

              
	
                SECTION
                  3.

              	
                CLOSING

              	
                2

              
	
                3.1

              	
                 
                  Closing Date.

              	
                2

              
	
                3.2

              	
                 
                  Purchaser's Closing Date Deliveries

              	
                2

              
	
                3.3

              	
                 
                  Seller's Closing Date Deliveries

              	
                3

              
	
                3.4

              	
                 
                  Further Assurances

              	
                3

              
	
                SECTION
                  4.

              	
                REPRESENTATIONS
                  AND WARRANTIES OF SELLER

              	
                3

              
	
                4.1

              	
                 
                  Organization of Seller

              	
                3

              
	
                4.2

              	
                 
                  Authority of Seller.

              	
                3

              
	
                4.3

              	
                 
                  No Violation of Law and Agreements

              	
                4

              
	
                4.4

              	
                 
                  Assets

              	
                4

              
	
                4.5

              	
                 
                  No Litigation or Regulatory Action

              	
                5

              
	
                4.6

              	
                 
                  Taxes

              	
                5

              
	
                4.7

              	
                 
                  Permits.

              	
                5

              
	
                4.8

              	
                 
                  Environmental Compliance.

              	
                5

              
	
                4.9

              	
                 
                  No Brokers

              	
                6

              
	
                SECTION
                  5.

              	
                REPRESENTATIONS
                  AND WARRANTIES OF PURCHASER

              	
                6

              
	
                5.1

              	
                 
                  Organization of Purchaser

              	
                6

              
	
                5.2

              	
                 
                  Authority of Purchaser

              	
                6

              

      

       

      
        
          
          

        

        
          -
            i -

          
            

          

        

        
          
          

        

      

      

      
        	
                5.3

              	
                 
                  No Violation of Law and Agreements

              	
                6

              
	
                5.4

              	
                 
                  No Litigation or Regulatory Action.

              	
                7

              
	
                5.5

              	
                 
                  No Brokers

              	
                7

              
	
                5.6

              	
                 
                  Financial Ability

              	
                7

              
	
                SECTION
                  6.

              	
                ACTION
                  PRIOR TO THE CLOSING DATE

              	
                7

              
	
                6.1

              	
                 
                  Regulatory and Other Approvals

              	
                7

              
	
                6.2

              	
                 
                  Investigation by Purchaser

              	
                7

              
	
                6.3

              	
                 
                  Veeco Lease.

              	
                7

              
	
                6.4

              	
                 
                  Designated Employees.

              	
                7

              
	
                6.5

              	
                 
                  Reasonable Efforts

              	
                8

              
	
                SECTION
                  7.

              	
                EMPLOYEES

              	
                8

              
	
                7.1

              	
                 
                  Offer of Employment

              	
                8

              
	
                7.2

              	
                 
                  No Third Party Beneficiaries.

              	
                8

              
	
                SECTION
                  8.

              	
                CONDITIONS
                  PRECEDENT TO OBLIGATIONS OF PURCHASER

              	
                8

              
	
                8.1

              	
                 
                  No Misrepresentation or Breach of Covenants and Warranties

              	
                8

              
	
                8.2

              	
                 
                  Necessary Governmental Approvals

              	
                8

              
	
                8.3

              	
                 
                  Deliveries by Seller

              	
                8

              
	
                8.4

              	
                 
                  No Injunction

              	
                9

              
	
                8.5

              	
                 
                  Employees.

              	
                9

              
	
                SECTION
                  9.

              	
                CONDITIONS
                  PRECEDENT TO OBLIGATIONS OF SELLER

              	
                9

              
	
                9.1

              	
                 
                  No Misrepresentation or Breach of Covenants and Warranties

              	
                9

              
	
                9.2

              	
                 
                  Necessary Governmental Approvals

              	
                9

              
	
                9.3

              	
                 
                  Payment of Purchase Price

              	
                9

              
	
                9.4

              	
                 
                  Delivery by Purchaser

              	
                9

              
	
                9.5

              	
                 
                  No Injunction

              	
                9

              

      

       

      
        
          
          

        

        
          -
            ii -

          
            

          

        

        
          
          

        

      

      

      
        	
                SECTION
                  10

              	
                TERMINATION

              	
                9

              
	
                10.1

              	
                 
                  Termination

              	
                9

              
	
                10.2

              	
                 
                  Effect of Termination

              	
                10

              
	
                SECTION
                  11.

              	
                SURVIVAL
                  AND INDEMNIFICATION

              	
                10

              
	
                11.1

              	
                 
                  Survival of Covenants, Representations and Warranties

              	
                10

              
	
                11.2

              	
                 
                  Indemnification By Seller

              	
                10

              
	
                11.3

              	
                 
                  Indemnification by Purchaser

              	
                10

              
	
                11.4

              	
                 
                  Notice of Claims.

              	
                10

              
	
                11.5

              	
                 
                  Mitigation.

              	
                11

              
	
                11.6

              	
                 
                  Subrogation.

              	
                11

              
	
                11.7

              	
                 
                  Warranty

              	
                11

              
	
                SECTION
                  12.

              	
                GENERAL
                  PROVISIONS

              	
                11

              
	
                12.1

              	
                 
                  Notices

              	
                11

              
	
                12.2

              	
                 
                  Expenses

              	
                11

              
	
                12.3

              	
                 
                  Confidentiality

              	
                12

              
	
                12.4

              	
                 
                  Waiver

              	
                12

              
	
                12.5

              	
                 
                  Amendment

              	
                12

              
	
                12.6

              	
                 
                  No Third Party Beneficiary

              	
                12

              
	
                12.7

              	
                 
                  No Assignment; Binding Effect

              	
                12

              
	
                12.8

              	
                 
                  Headings

              	
                13

              
	
                12.9

              	
                 
                  Invalid Provisions

              	
                13

              
	
                12.10

              	
                 
                  Governing Law

              	
                13

              
	
                12.11

              	
                 
                  Jurisdiction; Waiver of Jury Trial

              	
                13

              
	
                12.12

              	
                 
                  Counterparts

              	
                13

              
	
                12.13

              	
                 
                  Interpretation.

              	
                13

              
	
                12.14

              	
                 
                  Entire Agreement

              	
                13

              
	
                12.15

              	
                 
                  Circular 230 Disclaimer

              	
                13

              

      

       

      
        
          
          

        

        
          -
            iii -

          
            

          

        

        
          
          

        

      

      EXHIBITS

       

      
        	
                Exhibit
                  A

              	 	
                Certain
                  Definitions

              
	
                Exhibit
                  B

              	 	
                Patent
                  and Technology License Agreement

              
	
                Exhibit
                  C

              	 	
                Consulting
                  Agreement

              
	
                Exhibit
                  D

              	 	
                Bill
                  of Sale

              

      

      
        
          
          

        

        
          -
            iv -

          
            

          

        

        
          
          

        

      

      SCHEDULES

       

      
        	
                Schedule
                  1.1(a)(i)

              	 	
                D180

              
	
                Schedule
                  1.1(a)(ii)

              	 	
                Spare
                  Parts

              
	
                Schedule
                  1.1(a)(iii)

              	 	
                Consumables

              
	
                Schedule
                  1.1(a)(iv)

              	 	
                Equipment

              
	
                Schedule
                  1.1(a)(v)

              	 	
                GaN
                  Intellectual Property

              
	
                Schedule
                  4.3

              	 	
                Permitted
                  Liens

              
	
                Schedule
                  4.4

              	 	
                Assets

              
	
                Schedule
                  4.5

              	 	
                Litigation
                  or Regulatory Action

              
	
                Schedule
                  4.7

              	 	
                Permits

              
	
                Schedule
                  4.9

              	 	
                Benefit
                  Plans for Designated Employees

              
	
                Schedule
                  7.1

              	 	
                Designated
                  Employees

              

      

       

      
        
          
          

        

        
          -
            v -

          
            

          

        

        
          
          

        

      

      ASSET
        PURCHASE AGREEMENT

      

      This
        Asset Purchase Agreement (this "Agreement") is entered into as of March
        9th 2006, by and between International Rectifier Corporation, a
        Delaware corporation ("IR" or "Purchaser") and APA Enterprises, Inc., a
        Minnesota corporation ("APA" or "Seller"). (Purchaser and Seller may each
        be
        referred to herein as a "Party" and collectively as the "Parties." Capitalized
        terms have the meanings set forth in Exhibit A attached hereto.)

      

      W
        I T N E
        S S E T H:

      

      WHEREAS,
        Seller owns an Emcore D180 GaN MOCVD growth tool and related assets, including
        without limitation certain intellectual property, which it uses in the
        development and production of products utilizing Gallium Nitride ("GaN");
        and

      

      WHEREAS,
        Seller desires to sell to Purchaser, and Purchaser desires to purchase from
        Seller, said growth tool and related assets described herein on the terms
        and
        subject to the conditions set forth herein.

      

      NOW,
        THEREFORE, in consideration of the mutual covenants and agreements hereinafter
        set forth and other good and valuable consideration, the receipt and sufficiency
        of which is acknowledged, it is hereby agreed as follows:

      

      SECTION
        1.   PURCHASE
        AND SALE OF ASSETS

      

      1.1   Purchase
        and Sale of Assets.

      

      (a)   Upon
        the
        terms and subject to the conditions of this Agreement, on the Closing Date,
        Purchaser shall purchase from Seller, and Seller shall irrevocably sell,
        convey,
        transfer, assign and deliver to Purchaser, free and clear of all Encumbrances,
        all of Seller's rights, title and interest in and to the following assets,
        properties and rights, in each case to the extent existing as of the Closing
        Date (the "Assets"):

       

      
        (i)   The
          Emcore D180 GaN MOCVD growth tool described on Schedule 1.1(a)(i) (the
          "D180"),
          presently installed at the facility of Veeco Compound Semiconductor Inc.
          ("Veeco") located at 4900 Constellation Drive, St. Paul, Minnesota
          55127;

        

        (ii)    The
          spare
          parts for the D180 set forth on Schedule 1.1(a)(ii) (the "Spare
          Parts");

        

        (iii)   The
          consumable products intended for use with the D180 set forth on Schedule
          1.1(a)(iii) (the "Consumables");

        

        (iv)   The
          related equipment set forth on Schedule 1.1(a)(iv) (the "Equipment");
          and

        

        (v)    The
          know-how, technical information, patents, patent applications, disclosures
          and
          other Intellectual Property relating to GaN technology set forth on Schedule
          1.1(a)(v) (the "GaN Intellectual Property").

      

      
        
          
          

        

        
          -
            1 -

          
            

          

        

        
          
          

        

      

       

      (b)   Notwithstanding
        anything to the contrary herein, Seller shall not contribute, convey, assign,
        or
        transfer to Purchaser, and Purchaser shall not acquire or have any rights
        to
        acquire, any assets of Seller other than those specifically set forth on
        the
        Schedules identified in Section 1.1(a).

      

      1.2   Purchase
        Price.
        Purchaser shall pay Seller, and Seller shall accept, in full payment for
        the
        Assets, at the Closing a purchase price of One Million and Nine Hundred Thousand
        dollars ($1,900,000) (the "Purchase Price"). At Closing, Purchaser shall
        pay the
        Purchase Price to Seller by means of a wire transfer of immediately available
        U.S. funds to one or more accounts designated in advance in writing by Seller
        to
        Purchaser. 

      

      1.3   Allocation
        of Purchase Price.
        The
        consideration for the Assets as determined for federal income tax purposes
        shall
        be allocated as provided in Treasury Regulation Section
        1.1060-1(c).

      

      SECTION
        2.   ADDITIONAL
        AGREEMENTS

      

      2.1   Prior
        to
        or at the Closing, Purchaser and Seller shall enter into a patent and technology
        license agreement, substantially in the form of Exhibit B (the "Patent and
        Technology License Agreement"), pursuant to which Purchaser shall grant Seller
        a
        license to use certain of the GaN Intellectual Property in applications greater
        than 1.0 GHz.

      

      2.2   Prior
        to
        or at the Closing, Purchaser and Seller shall enter into a consulting agreement,
        substantially in the form of Exhibit C (the "Consulting Agreement"), pursuant
        to
        which Seller shall provide certain support services to Purchaser.

      

      SECTION
        3.   CLOSING

      

      3.1   Closing
        Date.
        The
        Closing shall be consummated on a date and at a time agreed upon by Purchaser
        and Seller, but in no event later than the fifth (5th)
        Business Day after the conditions set forth in Sections 8 and 9 have been
        satisfied or waived, at the offices of International Rectifier Corporation,
        233
        Kansas Street, El Segundo, CA, 90245, or at such other place as shall be
        agreed
        upon by Purchaser and Seller. The time and date on which the Closing is actually
        held is referred to herein as the "Closing Date."

      

      3.2   Purchaser's
        Closing Date Deliveries.
        Subject
        to fulfillment or waiver of the conditions set forth in Section 8, at the
        Closing, Purchaser shall deliver to Seller all of the following:

      

      (a)   The
        Purchase Price, payable as provided in Section 1.2;

      

      (b)   The
        Patent and Technology License Agreement, executed by a duly authorized officer
        of Purchaser;

      

      (c)   The
        Consulting Agreement, executed by a duly authorized officer of Purchaser;
        and

       

      
        
          
          

        

        
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            2 -

          
            

          

        

        
          
          

        

      

       

      (d)   Such
        other instruments and documents as Seller may reasonably deem necessary or
        as
        may be required to consummate the transactions contemplated hereby.

      

      3.3   Seller's
        Closing Date Deliveries.
        Subject
        to fulfillment or waiver of the conditions set forth in Section 9, at the
        Closing, Seller shall deliver to Purchaser all of the following:

      

      (a)   A
        Bill of
        Sale, substantially in the form of Exhibit D, executed by a duly authorized
        officer of Seller;

      

      (b)   The
        Patent and Technology License Agreement, executed by a duly authorized officer
        of Seller;

      

      (c)   The
        Consulting Agreement, executed by a duly authorized officer of
        Seller;

      

      (d)   All
        other
        instruments, certificates, documents and filings (if applicable) necessary
        to
        provide Purchaser full ownership of the Assets; and

      

      (e)   Such
        other instruments and documents as Purchaser may reasonably deem necessary
        or as
        may be required to consummate the transactions contemplated hereby.

      

      3.4   Further
        Assurances.
        Subject
        to the terms and conditions of this Agreement, from time to time after the
        Closing, each of the Parties shall execute and deliver such other documents
        and
        instruments, provide such materials and information, and take such other
        actions
        as may be reasonably necessary, to the extent permitted by Law, to fulfill
        its
        obligations under this Agreement.

      

      SECTION
        4.   REPRESENTATIONS
        AND WARRANTIES OF SELLER

      

      As
        an
        inducement to Purchaser to enter into this Agreement and to consummate the
        transactions contemplated hereby, Seller hereby represents and warrants to
        Purchaser as set forth below.

      

      4.1   Organization
        of Seller.
        Seller
        is a corporation duly incorporated, validly existing and in good standing
        under
        the laws of Minnesota. Seller has the corporate power and authority to own
        and
        operate the Assets in the manner conducted immediately prior to the date
        of this
        Agreement.

      

      4.2   Authority
        of Seller.
        Seller
        has the corporate power and authority to execute, deliver and perform this
        Agreement and the Transaction Agreements. The execution, delivery and
        performance of this Agreement and the Transaction Agreements by Seller have
        been
        duly authorized and approved by all necessary corporate action. This Agreement
        has been duly authorized, executed and delivered by Seller and (assuming
        the
        valid authorization, execution and delivery of this Agreement by Purchaser)
        is
        the legal, valid and binding obligation of Seller, enforceable in accordance
        with its terms, and each of the Transaction Agreements has been duly authorized
        by Seller and upon execution and delivery by Seller (assuming the valid
        authorization, execution and delivery by each other party thereto) will be
        the
        legal, valid and binding obligation of Seller enforceable in accordance with
        its
        terms, in each case subject to bankruptcy, insolvency, reorganization,
        moratorium and similar laws of general application relating to or affecting
        creditors' rights and to general equity principles.

       

      
        
          
          

        

        
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            3 -

          
            

          

        

        
          
          

        

      

       

      4.3   No
        Violation of Law and Agreements.
        The
        execution and delivery by Seller of this Agreement and each Transaction
        Agreement, and the performance by Seller of its obligations hereunder or
        thereunder, does not and will not:

      

      (a)   Violate
        any provisions of the certificate of incorporation or bylaws of
        Seller;

      

      (b)   Violate
        any provision of applicable Law relating to Seller; 

      

      (c)   Except
        as
        set forth on Schedule 4.3, require a registration, filing, application, notice,
        consent, approval, order, qualification, authorization, designation, declaration
        or waiver with, to or from any Governmental Authority; or

      

      (d)   Except
        as
        set forth on Schedule 4.3, (i) require a consent, approval or waiver from,
        or
        notice to, any party to any material contract to which Seller is a party,
        or
        (ii) result in a material breach of, constitute a default under, result in
        the
        acceleration of material obligations, loss of material benefit or increase
        in
        any material Liabilities or fees under, or create in any party the right
        to
        terminate, cancel or materially modify, any agreement to which Seller is
        a
        party.

      

      4.4   Assets.
        Seller
        owns, is in possession of, and has good and valid title to all of the Assets.
        All Assets are free and clear of all Liens, other than Liens disclosed in
        Schedule 4.4 ("Permitted Liens").

      

      (a)   The
        D180
        and all Equipment are in all material respects in good working order and
        condition, ordinary wear and tear excepted. The D180 has been installed on
        the
        Veeco premises in compliance with all applicable Laws and at all times has
        been
        operated in compliance with all applicable laws.

      

      (b)   All
        of
        the Spare Parts and Consumables are new and unused and consist of a quality
        and
        quantity usable in the ordinary course of business consistent with past
        practices. 

      

      (c)   Seller
        owns the entire right, title and interest in and to the GaN Intellectual
        Property, free and clear or all Encumbrances. To the Knowledge of Seller,
        none
        of the GaN Intellectual Property infringes or violates, or constitutes a
        misuse
        or misappropriation of, any intellectual property rights of any Person or
        entity. Other
        than as set forth on Schedule 4.4, Seller has not granted rights to use any
        GaN
        Intellectual Property to any other Person. To
        the
        Knowledge of Seller, during the previous two (2) years no material Action
        has
        been taken or threatened, (A) alleging that any GaN Intellectual Property
        infringes on the intellectual property of another Person; or (B) challenging
        the
        ownership or validity of the GaN Intellectual Property. No Action is pending
        with respect to any GaN Intellectual Property and, to the Knowledge of Seller,
        there is no valid basis for any such Action.

       

      
        
          
          

        

        
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            4 -

          
            

          

        

        
          
          

        

      

       

      (d)   Except
        as
        set forth on Schedule 4.4, there is no Action or Proceeding pending or, to
        the
        Knowledge of Seller, threatened, (a) which would delay the consummation of
        any
        of the transactions contemplated hereby; or (b) that questions the legality
        or
        propriety of the transactions contemplated by this Agreement or any of the
        Transaction Agreements. 

      

      4.5   No
        Litigation or Regulatory Action.
        Except
        as set forth on Schedule 4.5:

      

      (a)   There
        is
        no Action or Proceeding pending or, to the Knowledge of Seller, threatened,
        against Seller which would reasonably be expected to prevent, or materially
        hinder or delay the consummation of any of the transactions contemplated
        hereby;
        and

      

      (b)   There
        is
        no Action or Proceeding pending or, to the Knowledge of Seller, threatened,
        that
        questions the legality or propriety of the transactions contemplated by this
        Agreement or any of the Transaction Agreements.

      

      4.6   Taxes.
        None of
        the Assets is subject to any lien in favor of the United States pursuant
        to
        Section 6321 of the Code for nonpayment of federal Taxes, or any lien in
        favor
        of any state or locality pursuant to any comparable provision of state or
        local
        law, under which transferee liability might be imposed upon Purchaser as
        a buyer
        of such Assets pursuant to Section 6323 of the Code or any comparable provision
        of state or local law.

      

      4.7   Permits.
        Schedule 4.7 sets forth all Permits owned, held or possessed by Seller that
        are
        necessary to entitle it to own, operate and use the Assets substantially
        as
        conducted on the date of this Agreement, except for such Permits as to which
        the
        failure to so own, hold or possess would not result in a Material Adverse
        Effect
        (herein collectively called "Governmental Permits").

      

      4.8   Environmental
        Compliance.

      

      (a)   In
        its
        use and operation of the Assets, Seller is and has been in compliance with
        all
        applicable Environmental Laws.

      

      (b)   Seller
        possesses all Permits required under Environmental Laws for use and operation
        of
        the Assets except for such Permits that the failure to so hold or possess
        would
        not result in a Material Adverse Effect.

      

      (c)   To
        the
        Knowledge of Seller, there has been no release of any Hazardous Substance
        in
        connection with the use or operation of the Assets that is in violation of
        or is
        reasonably likely to lead to any Liability arising under any Environmental
        Law.

      

      (d)   Seller
        has not received any written notice of violation, nor is any Action pending
        or,
        to the Knowledge of Seller, threatened, asserting actual or potential Liability
        under any Environmental Law in respect of the use or operation of the
        Assets.

      

      (e)   All
        environmental studies and audits conducted in relation to the Assets in the
        last
        two (2) years of which Seller has knowledge have been made available to
        Purchaser.

       

      
        
          
          

        

        
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            5 -

          
            

          

        

        
          
          

        

      

       

      4.9   No
        Brokers.
        Except
        for the fees paid and payable by Seller to David Reamer, neither Seller nor
        any
        Person acting on its behalf has paid or become obligated to pay any fees
        or
        commission to any broker, finder or intermediary for or on account of the
        transactions contemplated by this Agreement.

      

      SECTION
        5.   REPRESENTATIONS
        AND WARRANTIES OF PURCHASER

      

      As
        an
        inducement to Seller to enter into this Agreement and to consummate the
        transactions contemplated hereby, Purchaser hereby represents and warrants
        to
        Seller as follows:

      

      5.1   Organization
        of Purchaser.
        Purchaser is a corporation duly incorporated, validly existing and in good
        standing under the laws of Delaware. Purchaser has the corporate power and
        authority to own or lease and operate its assets and to carry on its businesses
        in the manner that they were conducted immediately prior to the date of this
        Agreement.

      

      5.2   Authority
        of Purchaser.
        Purchaser has the corporate power and authority to execute, deliver and perform
        this Agreement and each of the Transaction Agreements. The execution, delivery
        and performance of this Agreement and the Transaction Agreements by Purchaser
        have been duly authorized and approved by all necessary corporate action.
        This
        Agreement has been duly authorized, executed and delivered by Purchaser and
        (assuming the valid authorization, execution and delivery of this Agreement
        by
        Seller) is the legal, valid and binding agreement of Purchaser, enforceable
        in
        accordance with its terms, and each of the Transaction Agreements has been
        duly
        authorized by Purchaser and upon execution and delivery by Purchaser (assuming
        the valid authorization, execution and delivery by each other party thereto)
        will be the legal, valid and binding obligation of Purchaser enforceable
        in
        accordance with its terms, in each case subject to bankruptcy, insolvency,
        reorganization, moratorium and similar laws of general application relating
        to
        or affecting creditors' rights and to general equity principles.

      

      5.3   No
        Violation of Law and Agreements.
        The
        execution and delivery by Purchaser of this Agreement and each Transaction
        Agreement, and the performance by Purchaser of its obligations hereunder
        or
        thereunder, does not and will not:

      

      (a)    Violate
        any provision of the certificate of incorporation or bylaws of
        Purchaser;

      

      (b)   Violate
        any provision of applicable Law relating to Purchaser; 

      

      (c)   Require
        a
        registration, filing, application, notice, consent, approval, order,
        qualification, authorization, designation, declaration or waiver with, to
        or
        from any Governmental Authority; or

      

      (d)   (i) Require
        a
        consent, approval or waiver from, or notice to, any party to any material
        contract to which Purchaser is a party, or (ii) result in a material breach
        of, constitute a default under, result in the acceleration of material
        obligations, loss of material benefit or increase in any material Liabilities
        or
        fees under, or create in any party the right to terminate, cancel or materially
        modify, any agreement to which Purchaser is a party.

       

      
        
          
          

        

        
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      5.4   No
        Litigation or Regulatory Action.

      

      (a)   There
        is
        no Action or Proceeding pending or, to the knowledge of Purchaser, threatened,
        against Purchaser which would reasonably be expected to prevent, or materially
        hinder or delay the consummation of any of the transactions contemplated
        hereby;
        and

      

      (b)   There
        is
        no Action or Proceeding pending or, to the knowledge of Purchaser, threatened,
        that questions the legality or propriety of the transactions contemplated
        by
        this Agreement or any of the Transaction Agreements.

      

      5.5   No
        Brokers.
        Neither
        Purchaser nor any Person acting on its behalf has paid or become obligated
        to
        pay any fee or commission to any broker, finder or intermediary for or on
        account of the transactions contemplated by this Agreement.

      

      5.6   Financial
        Ability.
        Purchaser has sufficient cash on hand from Purchaser's immediately available
        internal funds and/or available credit
        facilities to consummate the transactions contemplated by this Agreement
        and
        perform its obligations hereunder.

      

      SECTION
        6.   ACTION
        PRIOR TO THE CLOSING DATE

      

      Purchaser
        and Seller covenant and agree to take the following actions between the date
        hereof and the Closing Date:

      

      6.1   Regulatory
        and Other Approvals.
        Each
        Party will as promptly as practicable (a) take all commercially reasonable
        steps necessary or desirable to obtain all consents or approvals of, make
        all
        filings with and give all notices to Governmental Authorities or any other
        Person required to consummate the transactions contemplated hereby, and (b)
        provide such other information to such Governmental Authorities or other
        Persons
        as such Governmental Authorities or other Persons may reasonably request
        in
        connection therewith.

      

      6.2    Investigation
        by Purchaser.
        Seller
        will (a) provide Purchaser and its directors, officers, employees, counsel,
        accountants, financial advisors, consultants and other representatives
        (collectively, "Representatives") with reasonable access, upon reasonable
        prior
        notice and during normal business hours, to the Assets and any relevant
        supporting facilities, but only to the extent that such access does not
        unreasonably interfere with the business and operations of Seller, and (b)
        promptly furnish Purchaser and such Representatives with all such information
        and data concerning the Assets as Purchaser or any of such Representatives
        reasonably may request in connection with such investigation, except to the
        extent that furnishing any such information or data would violate any Law,
        Order, Contract or License applicable to Seller.

      

      6.3   Veeco
        Lease.
        The
        Parties will use reasonable commercial efforts to cause Veeco (a) to
        terminate its lease with Seller, dated June 11, 2004, on terms and conditions
        satisfactory to Seller; and (b) to enter into a substitute lease with Purchaser
        on terms and conditions satisfactory to Purchaser.

      

      6.4   Designated
        Employees.
        Seller
        shall use reasonable commercial efforts to cause the Designated Employees
        to
        accept employment with Purchaser following the Closing.

       

      
        
          
          

        

        
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            7 -

          
            

          

        

        
          
          

        

      

       

      6.5   Reasonable
        Efforts.
        Subject
        to the terms and conditions of this Agreement, each Party will use all
        reasonable efforts to cause the Closing to occur (including, without limitation,
        the use of commercially reasonable efforts to execute and deliver any documents
        reasonably requested by either Party and to satisfy such Party's conditions
        to
        Closing set forth herein). Each Party will promptly notify the other after
        learning of the occurrence of any event or circumstance which would reasonably
        be expected to cause any condition to Closing not to be satisfied. In such
        event, the Parties will negotiate in good faith during the seven (7) day
        period
        immediately after such notice to determine the consequences of such
        circumstance, and Seller or Buyer, as applicable, may elect to terminate
        this
        Agreement after the expiration of such seven (7) day period, which termination
        will be subject to Section 10.1 below.

      

      SECTION
        7.   EMPLOYEES

      

      7.1   Offer
        of Employment.
        Purchaser shall offer employment as of the Closing Date to each of the employees
        identified on Schedule 7.1 (the "Designated Employees"), attached hereto
        (which
        Schedule includes the position and base salary or wage level of each Designated
        Employee), on at least the same wage rates or cash salary levels. 

      

      7.2   No
        Third Party Beneficiaries.
        Nothing
        herein is intended to, and shall not be construed to, create any third party
        beneficiary rights of any kind or nature, including, without limitation,
        the
        right of any Designated Employee or other individual to seek to enforce any
        right to compensation, benefits, or any other right or privilege of employment
        with Seller or Purchaser.

      

      SECTION
        8.   CONDITIONS
        PRECEDENT TO OBLIGATIONS OF PURCHASER

      

      The
        obligations of Purchaser under this Agreement shall, at the option of Purchaser,
        be subject to the satisfaction or waiver, on or prior to the Closing Date,
        of
        the following conditions:

      

      8.1   No
        Misrepresentation or Breach of Covenants and Warranties.
        The
        representations and warranties of Seller made in this Agreement shall be
        true
        and correct in all material respects: (a) as of the date hereof; and
        (b) on and as of the Closing Date, as though made on such date. Seller
        shall have performed or complied in all material respects with all obligations
        and covenants required by this Agreement to be performed or complied with
        by
        Seller on or before the Closing Date, and Seller shall have delivered to
        Purchaser a certificate dated as of the Closing Date and signed by an authorized
        officer of Seller confirming the foregoing.

      

      8.2   Necessary
        Governmental Approvals.
        All
        approvals and actions of or by all Governmental Authorities which are necessary
        to consummate the transactions contemplated hereby shall have been obtained
        or
        taken place, other than those as to which the failure to have been obtained
        or
        taken place would not reasonably be expected to result in a Material Adverse
        Effect.

      

      8.3   Deliveries
        by Seller.
        Seller
        shall have delivered to Purchaser at Closing all of the items specified to
        be
        delivered by Seller in Section 3.3.

       

      
        
          
          

        

        
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            8 -

          
            

          

        

        
          
          

        

      

       

      8.4   No
        Injunction.
        There
        shall not be in effect on the Closing Date any Court Order restraining or
        enjoining the carrying out of this Agreement or the consummation of the
        transactions contemplated by this Agreement.

      

      8.5   Employees.
        Each of
        the Designated Employees shall have accepted Purchaser's offer of
        employment.

      

      SECTION
        9.   CONDITIONS
        PRECEDENT TO OBLIGATIONS OF SELLER

      

      The
        obligations of Seller under this Agreement shall, at the option of Seller,
        be
        subject to the satisfaction or waiver, on or prior to the Closing Date, of
        the
        following conditions:

      

      9.1   No
        Misrepresentation or Breach of Covenants and Warranties.
        The
        representations and warranties of Purchaser made in this Agreement shall
        be true
        and correct: (a) as of the date hereof; and (b) on and as of the Closing
        Date, as though made on such date. Purchaser shall have performed or complied
        in
        all material respects with all obligations and covenants required by this
        Agreement to be performed or complied with by Purchaser on or before the
        Closing
        Date; and Purchaser shall have delivered to Seller a certificate dated as
        of the
        Closing Date and signed by an authorized officer of Purchaser confirming
        the
        foregoing.

      

      9.2   Necessary
        Governmental Approvals.
        All
        approvals and actions of or by all Governmental Authorities which are necessary
        to consummate the transactions contemplated hereby shall have been obtained
        or
        taken place, other than those as to which the failure to have been obtained
        or
        taken place would not reasonably be expected to result in any Liability to
        Seller or to result in any violation of any Law.

      

      9.3   Payment
        of Purchase Price.
        Purchaser shall have paid to Seller the Purchase Price required to be paid
        pursuant to Section 1.2.

      

      9.4   Delivery
        by Purchaser.
        Purchaser shall have delivered to Seller at Closing all of the items specified
        to be delivered by Purchaser in Section 3.2.

      

      9.5   No
        Injunction.
        There
        shall not be in effect on the Closing Date any Court Order restraining or
        enjoining the carrying out of this Agreement or the consummation of the
        transactions contemplated by this Agreement.

      

      SECTION
        10.         TERMINATION

      

      10.1   Termination.
        This
        Agreement may be terminated, and the transactions contemplated hereby may
        be
        abandoned:

      

      (a)   At
        any
        time before the Closing, by written agreement of Seller and
        Purchaser;

      

      (b)   At
        any
        time before the Closing, by Seller or Purchaser, upon notification to the
        other
        Party, in the event that any Order or Law becomes effective restraining,
        enjoining or otherwise prohibiting or making illegal the consummation of
        any of
        the transactions contemplated by this Agreement; or

      
        
          
          

        

        
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            9 -

          
            

          

        

        
          
          

        

      

       

      (c)   At
        any
        time after April 15, 2006 by Seller or Purchaser, upon notification to the
        other
        Party, if the Closing shall not have occurred and such failure to consummate
        is
        not caused by a breach of this Agreement by the terminating Party.

      

      10.2   Effect
        of Termination
        If this
        Agreement is validly terminated pursuant to Section 10.1, this Agreement
        will forthwith become null and void, and there will be no liability or
        obligation on the part of Seller or Purchaser (or any of their respective
        Representatives or Affiliates), except as provided in the next succeeding
        sentence and except that the provisions with respect to expenses in
        Section 12.2 and confidentiality in Section 12.3 will continue to
        apply following any such termination. Notwithstanding any other provision
        to the
        contrary, upon termination of this Agreement pursuant to Section 10.1(b) or
        (c), each Party will remain liable to the other Party for any willful breach
        of
        Section 6.5 of this Agreement by such Party existing at the time of such
        termination, and the non-breaching Party may seek such remedies against the
        other Party with respect to any such breach as are provided in this Agreement
        or
        as are otherwise available at Law or in equity.

      

      SECTION
        11.         SURVIVAL
        AND INDEMNIFICATION

      

      11.1   Survival
        of Covenants, Representations and Warranties.
        The
        covenants, representations and warranties of Seller and Purchaser contained
        in
        this Agreement shall survive the Closing until the date that is twelve (12)
        months from the Closing Date. This Section shall not limit in any way the
        survival of any covenant or agreement of a Party to be performed after the
        Closing Date, which shall survive for the applicable period set forth
        herein.

      

      11.2   Indemnification
        By Seller.
        After
        the Closing Date, Seller agrees to indemnify and hold harmless Purchaser
        from
        and against any and all Losses incurred by Purchaser arising from: (a) any
        breach of any warranty or the inaccuracy of any representation of Seller
        contained in this Agreement, and (b) any breach by Seller of, or failure by
        Seller to perform, any of its covenants or obligations contained in this
        Agreement.

      

      11.3   Indemnification
        by Purchaser.
        After
        the Closing Date, Purchaser agrees to indemnify and hold harmless Seller
        from
        and against any and all Losses incurred by Seller arising from: (a) any
        breach of any warranty or the inaccuracy of any representation of Purchaser
        contained in this Agreement, and (b) any breach by Purchaser of, or failure
        by Purchaser to perform, any of its covenants or obligations contained in
        this
        Agreement.

      

      11.4   Notice
        of Claims.
        In the
        event Purchaser or Seller seeks indemnification hereunder (such Party, an
        "Indemnified Party") such Party shall give promptly to the Party obligated
        to
        provide indemnification to such Indemnified Party (the "Indemnitor") a written
        notice (a "Claim Notice") describing in reasonable detail the facts giving
        rise
        to the claim for indemnification hereunder; provided, however, that the failure
        of any Indemnified Party to give the Claim Notice promptly as required by
        this
        Section 11.4 shall not affect such Indemnified Party's rights except to the
        extent such failure is actually prejudicial to the rights and obligations
        of the
        Indemnitor.

       

      
        
          
          

        

        
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            10 -

          
            

          

        

        
          
          

        

      

       

      11.5   Mitigation.
        Each of
        the Parties agrees to take all reasonable steps to mitigate their respective
        Losses upon and after becoming aware of any event or condition which could
        reasonably be expected to give rise to any Losses that are indemnifiable
        hereunder.

      

      11.6   Subrogation.
        Upon
        making any payment to the Indemnified Party for any indemnification claim,
        the
        Indemnitor shall be subrogated, to the extent of such payment, to any rights
        which the Indemnified Party may have against any third-person with respect
        to
        the subject matter underlying such indemnification claim and the Indemnified
        Party shall assign any such rights to the Indemnitor.

      

      11.7   Warranty.
        In
        addition to the representations and warranties made by Seller herein, Seller
        hereby warrants to Purchaser that the D180 and all Equipment shall remain
        in all
        material respects in good working order and condition for a period of 30
        days
        after the Closing Date. This warranty is conditioned upon the absence of
        any
        kind of misuse or neglect.

      

      SECTION
        12.         GENERAL
        PROVISIONS

      

      12.1   Notices.
        All
        notices, requests and other communications hereunder shall be in writing
        and
        shall be deemed to have been duly given if delivered personally or by facsimile
        transmission or mailed (first class postage prepaid) to the other Party at
        the
        following addresses or facsimile numbers:

      

      If
        to
        Seller, to:

      

      APA
        Enterprises, Inc.

      2950
        N.E.
        84th
        Lane

      Blaine,
        MN 55449 

      Facsimile
        No.: 

      Attn:
        Anil K. Jain, Ph.D.

      

      If
        to
        Purchaser, to:

      

      International
        Rectifier Corporation

      233
        Kansas Street

      El
        Segundo, CA 90245

      Facsimile
        No.: (310) 726-8484

      Attn:
        Executive Vice President and General Counsel

      

      All
        such
        notices, requests and other communications will be deemed given upon receipt.
        Any Party from time to time may change its address, facsimile number or other
        information for the purpose of notices to that Party by giving notice specifying
        such change to the other Party.

      

      12.2   Expenses.
        Except
        as otherwise expressly provided in this Agreement (including without limitation
        as provided in Section 10.2), whether or not the transactions contemplated
        hereby are consummated, each Party will pay its own costs and expenses incurred
        in connection with the negotiation, execution and closing of this Agreement
        and
        the transactions contemplated hereby.

       

      
        
          
          

        

        
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            11 -

          
            

          

        

        
          
          

        

      

      

      12.3   Confidentiality.
        Each
        Party hereto will hold, and will cause its Representatives to hold in strict
        confidence all documents and information concerning the other Party or any
        of
        its Affiliates furnished to it by the other Party or such other Party’s
        Representatives in connection with this Agreement or the transactions
        contemplated hereby unless (i) compelled to disclose by judicial or
        administrative process (including without limitation in connection with
        obtaining the necessary approvals of this Agreement and the transactions
        contemplated hereby of Governmental Authorities) or by other requirements
        of Law
        or (ii) disclosed in an Action or Proceeding brought by a Party in pursuit
        of its rights or in the exercise of its remedies hereunder; provided that
        the
        foregoing covenant of confidentiality shall not apply to documents or
        information that is shown to have been (a) previously known by the receiving
        Party, (b) in the public domain (either prior to or after the furnishing
        of such
        documents or information hereunder) through no fault of such receiving Party
        or
        (c) later acquired by the receiving Party from another source if the receiving
        Party is not aware that such source is under an obligation to the other Party
        to
        keep such documents and information confidential. In the event the transactions
        contemplated hereby are not consummated, upon the request of the other Party,
        each Party will, and will cause its Representatives to, promptly redeliver
        or
        cause to be redelivered all copies of confidential documents and information
        furnished by the other Party in connection with this Agreement or the
        transactions contemplated hereby and destroy or cause to be destroyed all
        notes,
        memoranda, summaries, analyses, compilations and other writings related thereto
        or based thereon prepared by such Party or its Representatives.

      

      12.4   Waiver.
        Any
        term or condition of this Agreement may be waived at any time by the Party
        that
        is entitled to the benefit thereof, but no such waiver shall be effective
        unless
        set forth in a written instrument duly executed by or on behalf of the Party
        waiving such term or condition. No waiver by a Party of any term or condition
        of
        this Agreement, in any one or more instances, shall be deemed to be or construed
        as a waiver of the same or any other term or condition of this Agreement
        on any
        future occasion. All remedies, either under this Agreement or afforded by
        Law,
        are cumulative and not alternative.

      

      12.5   Amendment.
        This
        Agreement may be amended, supplemented or modified only by a written instrument
        duly executed by each Party.

      

      12.6   No
        Third Party Beneficiary.
        The
        terms and provisions of this Agreement are intended solely for the benefit
        of
        the Parties hereto and their respective successors or permitted assigns,
        and it
        is not the intention of the Parties to confer third-party beneficiary rights
        upon any other Person.

      

      12.7   No
        Assignment; Binding Effect.
        Neither
        this Agreement nor any right, interest or obligation hereunder may be assigned
        by either Party without the prior written consent of the other Party and
        any
        attempt to do so will be void, except (a) for assignments and transfers by
        operation of Law, and (b) that Purchaser may assign any or all of its
        rights, interests and obligations hereunder to a wholly-owned subsidiary,
        provided that such subsidiary agrees in writing to be bound by all of the
        provisions contained herein. Subject to the preceding sentence, this Agreement
        is binding upon, inures to the benefit of and is enforceable by the Parties
        and
        their respective successors and assigns.

      
        
          
          

        

        
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            12 -

          
            

          

        

        
          
          

        

      

      

      12.8    Headings.
        The
        headings used in this Agreement have been inserted for convenience of reference
        only and do not define or limit the provisions hereof.

      

      12.9     Invalid
        Provisions.
        If any
        provision of this Agreement is held to be illegal, invalid or unenforceable,
        and
        if the rights or obligations of a Party under this Agreement will not be
        materially and adversely affected thereby, (a) such provision will be fully
        severable, (b) this Agreement will be construed and enforced as if such
        illegal, invalid or unenforceable provision had never comprised a part hereof,
        and (c) the remaining provisions of this Agreement will remain in full
        force and effect and will not be affected by the illegal, invalid or
        unenforceable provision or by its severance herefrom.

      

      12.10   Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the Laws
        of the
        State of California applicable to a contract executed and performed in such
        State, without giving effect to the conflicts of laws principles
        thereof.

      

      12.11   Jurisdiction;
        Waiver of Jury Trial.
        The
        Parties hereby agree that any Action or Proceeding arising out of or related
        to
        this Agreement shall be conducted only in the County of Los Angeles, California.
        Each Party hereby irrevocably consents and submits to the exclusive personal
        jurisdiction of and venue in the federal and state courts located in the
        County
        of Los Angeles, California. Each Party hereby waives to the fullest extent
        permitted by applicable Law, any right it may have to a trial by jury in
        respect
        of any litigation directly or indirectly arising out of, under or in connection
        with this Agreement or any transaction contemplated hereby. Each Party agrees
        that service of any summons, complaint or other initial pleading made in
        the
        manner provided for the giving of notices in Section 12.1 shall be effective
        service in such Action or Proceeding. Nothing in this Section 12.11, however,
        shall affect the right of a Party to serve such summons, complaint or initial
        pleading in any other manner permitted by Law.

      

      12.12   Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which will
        be
        deemed an original, but all of which together will constitute one and the
        same
        instrument.

      

      12.13   Interpretation.
        The
        Schedules referred to herein are an integral part of this Agreement to the
        same
        extent as if they were set forth verbatim herein. This Agreement shall be
        construed without regard to any presumption or rule requiring construction
        or
        interpretation against the Party drafting or causing any instrument to be
        drafted.

      

      12.14   Entire
        Agreement.
        This
        Agreement, including the Exhibits and Schedules hereto, supersedes all prior
        discussions and agreements between the Parties with respect to the subject
        matter hereof and contains the sole and entire agreement between the Parties
        hereto with respect to the subject matter hereof.

      

      12.15   Circular
        230 Disclaimer.
        EACH
        PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES THAT (1) NO PROVISION OF
        THIS
        AGREEMENT, AND NO WRITTEN COMMUNICATION OR DISCLOSURE BETWEEN OR AMONG THE
        PARTIES OR THEIR ATTORNEYS AND OTHER ADVISERS, IS OR WAS INTENDED TO BE,
        NOR
        SHALL ANY SUCH COMMUNICATION OR DISCLOSURE CONSTITUTE OR BE CONSTRUED OR
        BE
        RELIED UPON AS, TAX ADVICE WITHIN THE MEANING OF UNITED STATES TREASURY
        DEPARTMENT CIRCULAR 230 (31 CFR PART 10, AS AMENDED); (2) THE ACKNOWLEDGING
        PARTY (A) HAS RELIED EXCLUSIVELY UPON ITS OWN, INDEPENDENT LEGAL AND TAX
        ADVISERS FOR ADVICE (INCLUDING TAX ADVICE) IN CONNECTION WITH THIS AGREEMENT,
        (B) HAS NOT ENTERED INTO THIS AGREEMENT BASED UPON THE RECOMMENDATION OF
        ANY
        ATTORNEY OR ADVISOR TO THE OTHER PARTY, AND (C) IS NOT ENTITLED TO RELY UPON
        ANY
        COMMUNICATION OR DISCLOSURE BY ANY ATTORNEY OR ADVISER TO THE OTHER PARTY
        TO
        AVOID ANY TAX PENALTY THAT MAY BE IMPOSED ON THE ACKNOWLEDGING PARTY; AND
        (3) NO
        ATTORNEY OR ADVISER TO THE OTHER PARTY HAS IMPOSED ANY LIMITATION THAT PROTECTS
        THE CONFIDENTIALITY OF ANY SUCH ATTORNEY'S OR ADVISER'S TAX STRATEGIES
        (REGARDLESS OF WHETHER SUCH LIMITATION IS LEGALLY BINDING) UPON DISCLOSURE
        BY
        THE ACKNOWLEDGING PARTY OF THE TAX TREATMENT OR TAX STRUCTURE OF ANY
        TRANSACTION, INCLUDING ANY TRANSACTION CONTEMPLATED BY THIS
        AGREEMENT.

      
        
          
          

        

        
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            13 -

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Parties hereto have caused this Asset Purchase Agreement
        to
        be executed and delivered as of the day and year first written
        above.

       

      
        	
                 APA
                  ENTERPRISES, INC.

                 

              	 	
                 INTERNATIONAL
                  RECTIFIER CORPORATION

                 

              
	
                 

                By:

              	
                 /s/
                  Anil K. Jain

              	 	 By:	
                /s/
                  Alexander Lidow

              
	
                 

                Name:

              	
                Anil
                  K. Jain

              	 	 Name:	
                Alexander
                  Lidow

              
	
                 

                Title:

              	
                CEO

              	 	 Title:	
                CEO

              

      

       

      
        
          
          

        

        
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            14 -

          
            

          

        

        
          
          

        

      

      Exhibit
        A

      

      CERTAIN
        DEFINITIONS

      

      In
        this
        Agreement, the following terms have the meanings specified or referred to
        in
        this Exhibit A and shall be equally applicable to both the singular and plural
        forms. Any agreement referred to below shall mean such agreement as amended,
        supplemented and modified from time to time to the extent permitted by the
        applicable provisions thereof and by this Agreement.

      

      "Action
        or Proceeding"
        means
        any lawsuit, legal proceeding, litigation, arbitration or action. 

      

      "Affiliate"
        means
        any Person that directly, or indirectly through one of more intermediaries,
        controls or is controlled by or is under common control with the Person
        specified. For purposes of this definition, control of a Person means the
        power,
        direct or indirect, to direct or cause the direction of the management and
        policies of such Person whether by contract or otherwise. 

      

      "Agreement"
        means
        this Asset Purchase Agreement, together with the Schedules and Exhibits attached
        hereto.

      

      "Assets"
        is
        defined in Section 1.1(a).

      

      "Benefit
        Plan"
        means
        any bonus, incentive compensation, deferred compensation, pension, profit
        sharing, retirement, stock, stock option, leave of absence, layoff, vacation,
        dependent care, life, health, accident, disability, workmen’s compensation or
        other insurance, severance, separation or other employee benefit plan or
        arrangement, existing at the Closing Date, to which Seller contributes or
        has
        contributed on behalf of any Designated Employee.

      

      "Business
        Day"
        means a
        day other than Saturday, Sunday or any day on which banks located in the
        State
        of California are authorized or obligated to close.

      

      "Closing"
        means
        the consummation of the transactions contemplated by
        Section 2.

      

      "Closing
        Date"
        is
        defined in Section 2.1.

      

      "Code"
        means
        the Internal Revenue Code of 1986, as amended.

      

      "Court
        Order"
        means
        any judgment, order, writ, decision, injunction, award or decree of any foreign,
        federal, state, local or other court or tribunal and any ruling or award
        in any
        binding arbitration proceeding.

      

      "Consumables"
        is
        defined in Section 1.1(a)(iii).

      

      "D180"
        is
        defined in Section 1.1(a)(i).

       

      
        
          
          

        

        
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            15 -

          
            

          

        

        
          
          

        

      

       

      "Designated
        Employee"
        is
        defined in Section 7.1.

      

      "Encumbrance"
        means
        any lien, encumbrance, claim, charge, security interest, mortgage, deed of
        trust, pledge, easement, conditional sale or other title retention agreement,
        defect in title or other restriction of a similar kind.

      

      "Equipment"
        is
        defined in Section 1.1(a)(iv).

      

      "Expenses"
        means
        any and all reasonable out-of-pocket expenses incurred in connection with
        investigating, defending or asserting any claim, action, suit or proceeding
        incident to any matter indemnified against hereunder (including, without
        limitation, court filing fees, court costs, arbitration fees or costs, witness
        fees and reasonable fees and disbursements of legal counsel, investigators,
        expert witnesses, accountants and other professionals).

      

      "GaN
        Intellectual Property"
        is
        defined in Section 1.1(a)(v).

      

      "Governmental
        Authority"
        means
        any court, tribunal, arbitrator, authority, agency, commission, official
        or
        other instrumentality of the United States or any state, county, city or
        other
        political subdivision thereof.

      

      "Intellectual
        Property"
        means
        all patents and patent rights, trademarks and trademark rights, trade names
        and
        trade name rights, service marks and service mark rights, service names and
        service name rights, brand names, inventions, copyrights and copyright rights,
        processes, formulae, trade dress, business and product names, logos, slogans,
        trade secrets, works of authorship, mask works, industrial models, processes,
        designs, methodologies, computer programs (including all source codes) and
        related documentation, technical information, manufacturing, engineering
        and
        technical drawings, know-how and all pending applications for and registrations
        of patents, trademarks, service marks and copyrights.

      

      "IR"
        is
        defined in the preamble of this Agreement.

      

      "Knowledge
        of Seller,"
        "Seller's
        Knowledge"
        or
        "Knowledge,"
        when
        used in connection with Seller, means, as to a particular matter, the actual
        knowledge of the officers of Seller.

      

      "Law"
        means
        any law, statute, treaty, rule, regulation, ordinance, order, decree, consent
        decree or similar instrument or determination or award of an arbitrator or
        a
        court or any other Governmental Authority.

      

      "Liability
        (and
        with
        correlative meaning, "Liabilities")"
        means
        all indebtedness, obligations, damages, fines, fees, and other liabilities
        (or
        contingencies that have not yet become liabilities), whether absolute, accrued,
        matured, contingent (or based upon any contingency), known or unknown, fixed
        or
        otherwise, or whether due or to become due, including without limitation,
        any
        fines, penalties, judgments, awards or settlements respecting any judicial,
        administrative or arbitration proceedings or any damages, losses, claims
        or
        demands with respect to any Law.

       

      
        
          
          

        

        
          -
            16 -

          
            

          

        

        
          
          

        

      

       

      "Liens"
        means
        any mortgage, pledge, assessment, security interest, lease, lien, adverse
        claim,
        levy, charge or other encumbrance of any kind, or any conditional sale contract,
        title retention contract or other contract to give any of the
        foregoing.

      

      "Material
        Adverse Effect"
        means
        any change, circumstance or effect that has a material adverse effect on
        the
        Assets taken as a whole.

      

      "Permits"
        means
        all licenses, permits, franchises, approvals, authorizations, consents or
        orders
        of, or filings with, any Governmental Authority, or any other Person, necessary
        for use of the Assets.

      

      "Permitted
        Liens"
        is
        defined in Section 4.3.

      

      "Person"
        means
        an individual, partnership, corporation, business trust, joint stock company,
        trust, unincorporated association, joint venture, Governmental Authority
        or
        other entity of whatever nature.

      

      "Purchase
        Price"
        is
        defined in Section 1.2.

      

      "Purchaser"
        is
        defined in the preamble of this Agreement.

      

      "Seller"
        is
        defined in the preamble of this Agreement.

      

      "Spare
        Parts"
        is
        defined in Section 1.1(a)(ii).

      

      "Tax"
        (and,
        with correlative meaning, "Taxes") means any federal, state, local or foreign
        income, gross receipts, property, sales, use, license, excise, franchise,
        employment, payroll, withholding, alternative or add-on minimum, ad valorem,
        transfer or excise tax, or any other tax, custom, duty, governmental fee
        or
        other like assessment or charge of any kind whatsoever, together with any
        interest or
        penalty, imposed by any Governmental Authority.

      

      "Transaction
        Agreements"
        means
        all agreements, instruments and documents being or to be executed and delivered
        by a Party pursuant to this Agreement.

      

      "Veeco"
        is
        defined in Section 1.1(a)(i).

      

      For
        the
        avoidance of doubt, unless the context of this Agreement otherwise requires,
        (i)
        words of any gender include each other gender; (ii) words using the singular
        or
        plural number also include the plural or singular number, respectively; (iii)
        the terms "hereof," "herein," "hereby" and derivative or similar words refer
        to
        this entire Agreement; (iv) the term "Section" refers to the specified Section
        of this Agreement; and (v) the term "including" means "including, without
        limitation." Whenever this Agreement refers to a number of days, such number
        shall refer to calendar days unless Business Days are specified. Any
        representation or warranty contained herein as to the enforceability of a
        contract shall be subject to the effect of any bankruptcy, insolvency,
        reorganization, moratorium or other similar law affecting the enforcement
        of
        creditors' rights generally and to general equitable principles (regardless
        of
        whether such enforceability is considered in a proceeding in equity or at
        Law).

       

      
        
          
          

        

        
          -
            17 -

          
            

          

        

        
          
          

        

      

      Exhibit
        B

       

      PATENT
        AND TECHNOLOGY LICENSE AGREEMENT

      
        
          
          

        

        
          -
            18 -

          
            

          

        

        
          
          

        

      

      Exhibit
        C

       

      CONSULTING
        AGREEMENT

      
        
          
          

        

        
          -
            19 -

          
            

          

        

        
          
          

        

      

      Exhibit
        D

       

      BILL
        OF
        SALE

       

      THIS
        BILL
        OF SALE is dated as of March 9, 2006 by and between International Rectifier
        Corporation, a Delaware corporation ("Purchaser") and APA Enterprises, Inc.,
        a
        Minnesota corporation ("Seller").

       

      WHEREAS,
        Purchaser and Seller have entered into an Asset Purchase Agreement, dated
        as of
        March 9, 2006 (the “Asset
        Purchase Agreement”;
        capitalized terms not defined herein shall have the meanings ascribed to
        them in
        the Asset Purchase Agreement), pursuant to which Seller has agreed to sell,
        transfer, convey, assign and deliver to Purchaser and Purchaser has agreed
        to
        purchase from Seller the assets described in Section 1.1 of the Asset Purchase
        Agreement (the "Assets");

       

      WHEREAS,
        Seller desires to transfer and assign to Purchaser the Assets and Purchaser
        desires to accept the sale, transfer, conveyance, assignment and delivery
        thereof;

       

      NOW,
        THEREFORE, for and in consideration of the mutual covenants contained herein
        and
        other good and valuable consideration the receipt and sufficiency of which
        are
        hereby acknowledged, Seller hereby irrevocably sells, transfers, conveys,
        assigns and delivers to Purchaser the Assets, TO HAVE AND TO HOLD the same
        unto
        Purchaser, its successors and assigns, forever.

       

      Purchaser
        hereby accepts the sale, transfer, conveyance, assignment and delivery of
        the
        Assets.

       

      At
        any
        time or from time to time after the date hereof, at Purchaser’s request and
        without further consideration, Seller shall execute and deliver to Purchaser
        such other instruments of sale, transfer, conveyance, assignment and
        confirmation, provide such materials and information and take such other
        actions
        as Purchaser may reasonably deem necessary or desirable in order more
        effectively to transfer, convey and assign to Purchaser, and to confirm
        Purchaser’s title to, all of the Assets.

       

      This
        Bill
        of Sale may be executed in any number of counterparts, each of which will
        be
        deemed an original, but all of which together will constitute one and the
        same
        instrument.

       

      This
        Bill
        of Sale shall be governed by and construed in accordance with the laws of
        the
        State of California applicable to a contract executed and performed in such
        State without giving effect to the conflicts of laws principles thereof,
        except
        that if it is necessary in any other jurisdiction to have the law of such
        other
        jurisdiction govern this Bill of Sale in order for it to be effective in
        any
        respect, then the laws of such other jurisdiction shall govern this Bill
        of Sale
        to such extent.

      
        
          
          

        

        
          -
            20 -

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the undersigned have caused their duly authorized officers
        to
        execute this Bill of Sale on the day and year first above written.

      

      
        	 	
                PURCHASER:

              
	 	 	 
	 	
                International
                  Rectifier Corporation, a Delaware corporation 

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	
                /s/
                  Alexander Lidow

              
	 	 	
                Name:
                  Alexander Lidow

              
	 	 	
                Title:
                  CEO

              
	 	 	 
	 	 	 
	 	
                SELLER:

              
	 	 	 
	 	
                APA
                  Enterprises, Inc., a Minnesota corporation

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	
                /s/
                  Anil K. Jain

              
	 	 	
                Name:
                  Anil K. Jain

              
	 	 	
                Title:
                  CEO

              

      

       

       

      -
        i
        -

      
        
          

        
.Exhibit 10.13

    
      

    

    PATENT
      AND TECHNOLOGY LICENSE AGREEMENT

    

    This
      Patent and Technology License Agreement ("License Agreement") is entered into
      and effective as of the 9th day of March, 2006 (the "Effective Date"), by and
      between INTERNATIONAL RECTIFIER CORPORATION, a company organized under the
      laws
      of the State of Delaware ("IR"), and APA Enterprises, Inc., a company organized
      under the laws of the State of Minnesota ("APA"). IR and APA each may be
      referred to herein as a "Party" and collectively as the "Parties."

    

    WHEREAS,
      IR and APA are parties to that certain Asset Purchase Agreement, dated as of
      March 9, 2006, pursuant to which APA sold to IR certain assets, including
      without limitation certain patents and technology relating to the development
      and production of products utilizing Gallium Nitride ("GaN").

    

    WHEREAS,
      APA desires to obtain a license to such patents and technology to design,
      develop, make, have made, market, sell and service products for applications
      greater than 1.0 GHz and desires to share the value of any benefit attributable
      to certain licenses IR may grant to a third party.

    

    WHEREAS,
      IR is prepared to cause such technology and patents to be licensed to APA and
      share revenue upon the terms and conditions set forth herein.

    

    NOW,
      THEREFORE, the Parties agree as follows:

    

    Article
      1- Definitions

    

    1.1   "Affiliate"
      means any person that, directly or indirectly through one or more
      intermediaries, controls or is controlled by or is under common control with
      the
      person specified. For purposes of this definition, control of a person means
      the
      power, direct or indirect, to direct or cause the direction of the management
      and policies of such person, whether by contract or otherwise.

    

    1.2   "Field
      of
      Use" means applications greater than 1.0 GHz.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.3   "Licensed
      Patents" means
      the
      patents and patent applications therefor identified on Schedule A, attached
      hereto and made a part hereof.

    

    1.4   "Licensed
      Technology" means the documented disclosures, know-how, technical information,
      trade secrets and other intellectual property or rights listed on Schedule
      B,
      attached hereto and made a part hereof.

    

    1.5   "Licensed
      IP Rights" shall mean Licensed Patents and Licensed Technology.

    

    1.6   "APA's
      IP
      Rights" means:

    

    1.6.1   The
      patents and applications therefor (and patents which may issue on such
      applications) covering APA's inventions applicable to the Licensed IP Rights
      with respect to which the first application for a patent anywhere was filed
      prior to the date of termination of this Agreement; and

    

    1.6.2   Know-how,
      technical information, trade secrets and other intellectual property or rights
      applicable to the Licensed IP Rights that APA develops or acquires during the
      term of this Agreement.

    

    1.7   "Licensed
      Products" means products that utilize the Licensed IP Rights within the Field
      of
      Use.

    

    Article
      2 - Grants of Licenses

    

    2.1   IR
      hereby
      grants to APA a fully paid, non-exclusive, non-transferable, world-wide right
      and license to use the Licensed IP Rights within the Field of Use to design,
      develop, make, have made, use, market, sell and service Licensed Products
      manufactured by or for APA. The license granted herein does not include the
      right to sublicense any third party, except that APA may grant a sublicense
      to
      one or more of its Affiliates provided that such Affiliate agrees in writing
      to
      comply with all of the provisions of this License Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.2   APA
      hereby grants to IR a non-exclusive, non-transferable, world-wide, royalty-free
      right and license, with the right to sublicense to its Affiliates, to use APA's
      IP Rights for any purpose. This provision shall survive the termination or
      expiration of this Agreement.

    

    2.3   APA
      hereby agrees not to assert or commence legal action against IR, or against
      any
      Affiliate of IR, or against the vendees of any of them, for any claim of
      infringement of any patents of any country of the world which are now owned
      or
      which hereafter may be acquired by APA where such claim is based upon the
      manufacture, use or sale by IR or its subsidiaries or their vendees of power
      semiconductor products or devices.

    

    2.4   Licensed
      Technology will be disclosed in the language, form and system of measurements
      in
      which it is available at IR at the time of its disclosure to APA. IR will not
      be
      obligated under this License Agreement to make up any special drawings,
      specifications, translations, or other similar documents for APA. 

    

    Article
      3 - Representations; No Indemnification

    

    3.1   Each
      Party represents that it has the right to license and to furnish to the other
      Party the Licensed IP Rights or APA's IP Rights, as the case may
      be.

    

    3.2   Neither
      Party makes any representation concerning the existence, scope or validity
      of
      any of its patents. 

    

    3.3   Neither
      IR nor APA makes any representation or warranty as to the value or utility
      of
      the Licensed IP Rights or APA's IP Rights licensed hereunder. Neither IR nor
      APA
      makes any warranty that the use of the Licensed IP Rights or APA's IP Rights
      does not infringe or will not cause infringement of any intellectual property
      rights owned or controlled by any third party. Each Party understands and agrees
      that neither IR nor APA makes any warranty that any manufacture, use, offer
      for
      sale, sale or other disposal of Licensed Products will be free from infringement
      of any third party intellectual property rights. Neither IR nor APA makes any
      representation or warranty, expressed or implied, statutory or otherwise, and
      each Party expressly disclaims implied warranties of merchantability, fitness
      for a particular purpose and non-infringement, and any equivalents under the
      laws of any jurisdictions that might arise from any activities or information
      disclosures relating to this License Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3.4   Notwithstanding
      the foregoing, APA agrees to hold IR harmless from and against any third party
      claims, including infringement claims, asserted, against IR arising directly
      or
      indirectly from (a) APA's failure to properly use the Licensed Technology;
      (b)
      APA's modification of the Licensed Technology; or (c) use of the Licensed
      Technology in combination with information not supplied by IR.

    

    Article
      4 - United States Government Export Administration Regulations

    

    4.1   APA
      hereby gives to IR its written assurance that it will comply with all applicable
      export laws and regulations, including but not limited to, the export control
      laws and regulations of the United States.

    

    Article
      5 - Third Party Licensing

    

    5.1   Upon
      the
      request of APA, IR shall use reasonable commercial efforts to negotiate and
      enter into a licensing agreement with one or more of the third parties listed
      in
      Schedule C on terms and conditions acceptable to IR. Such licensing agreement
      shall allow the third party to use the Licensed IP Rights within the Field
      of
      Use to design, develop, make, use, market, sell and service Licensed Products
      for APA or in a joint venture with APA. 

    

    Article
      6 - Confidentiality

    

    6.1   Confidential
      information which either Party discloses to the other Party hereunder shall
      remain the property of the disclosing Party. If disclosed in written form,
      it
      shall be identified as confidential information by an appropriate legend. If
      disclosed orally or visually, it shall be identified as confidential information
      at the time of disclosure and shall be confirmed by written outline mailed
      to
      the other Party by registered or certified mail, return receipt requested,
      within thirty (30) days of the original disclosure. For a period of ten (10)
      years from the date of first receipt thereof, the receiving Party
      shall:

    

    6.1.1   Treat
      all
      such information in the same manner as it treats its own confidential
      information, in any event exercising reasonable precautions to prevent the
      disclosure of such information to others; and

    

    6.1.2   Use
      such
      information only for the purposes set forth herein.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    6.2   The
      foregoing commitments shall impose no obligation with respect to any information
      which:

    

    6.2.1   Is
      now or
      hereafter becomes, through no act or failure to act on the part of the receiving
      Party, part of the public domain;

    

    6.2.2   Is
      hereafter furnished to the receiving Party by a third party as a matter of
      right
      and without restriction on disclosure;

    

    6.2.3   Is
      supplied by the disclosing Party to a third party without restrictive
      obligations similar to those imposed herein; or

    

    6.2.4   Is
      independently developed by or for the receiving Party.

    

    Article
      7 - Term and Termination

    

    7.1   This
      License Agreement shall become effective on the Effective Date.

    

    7.2   Unless
      sooner terminated in accordance with the provisions of this Article 7, or by
      operation of law or otherwise, this License Agreement shall terminate on the
      date that the last of the Licensed Patents expires.

    

    7.3   This
      License Agreement shall be subject to termination by IR upon written notice
      to
      APA in the event that, in IR's reasonable judgment:

    

    7.3.1   Such
      termination is necessary to comply with any order, decree or request of any
      court of competent jurisdiction or any competent governmental authority or
      any
      department or agency thereof; or

    

    7.3.2   Normal
      conduct of the business of APA as an ongoing enterprise ceases or is
      substantially altered as a consequence of any action taken by governmental,
      judicial, or any other authority; or

    

    7.3.3   APA
      fails
      or becomes substantially unable to perform any of its material obligations
      or
      undertakings under this License Agreement, or violates any material right or
      license granted to it by IR hereunder, and the default, inability, or violation
      is not corrected within thirty (30) days after written notice from IR specifying
      the nature of such default, inability, or violation; or

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    7.3.4   APA
      makes
      any use or disclosure of Licensed IP Rights not authorized by this License
      Agreement.

    

    7.4   In
      the
      event that either Party becomes bankrupt or insolvent, or makes an assignment
      for the benefit of creditors, or a receiver is appointed for it, or it otherwise
      takes advantage of any insolvency law, the other Party may terminate this
      License Agreement upon one (1) day's written notice.

    

    7.5   Upon
      termination of this License Agreement prior to the full term hereof, all rights
      granted and obligations undertaken hereunder with respect to this License
      Agreement shall terminate forthwith except:

    

    7.5.1   Unless
      this License Agreement is terminated by IR pursuant to Sections 7.3.3, 7.3.4
      or
      7.4, APA may continue to use the Licensed IP Rights to fulfill its obligations
      under contracts with customers in effect on the date APA received notice of
      termination, provided that APA, within thirty (30) days of the termination
      date,
      provides written notice of each such contract to IR, including the identity
      of
      the customer and the Licensed Products, and the expected date of expiration
      or
      termination of such contract; 

    

    7.5.2   The
      provisions of Sections 2.3, 3.4, 4.1, Article 5, Article 6, and Sections 10.9
      and 10.10 shall survive termination of this Agreement.

    

    7.6   Upon
      expiration of the full term of this License Agreement, APA shall have a fully
      paid non-exclusive license, with no right to sublicense, except to one or more
      of its Affiliates, to use the Licensed IP Rights to make, use and sell Licensed
      Products.

    

    7.7   Expiration
      or termination of this License Agreement or termination of the licenses granted
      herein shall not relieve either Party of any liability or obligations accruing
      as of the effective date of such expiration or termination.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Article
      8- General Limitations

    

    8.1   The
      obligations and rights of the Parties under this License Agreement shall be
      subject to the following:

    

    8.1.1   Neither
      Party shall be obligated to disclose any proprietary information of a third
      party without the consent of such third party or any information the furnishing
      of which would require the payment of consideration to a third party, other
      than
      an employee of the Party furnishing such information;

    

    8.1.2   Neither
      Party shall be obligated to disclose any information which the laws and
      regulations of any government which has jurisdiction over such matters do not
      permit to be disclosed; and

    

    8.1.3   Neither
      Party shall be obligated to take any action which would violate the laws,
      regulations or requirements of any government or any agency thereof which has
      jurisdiction over such matters.

    

    Article
      9
      - Third
      Party Revenue

    

    9.1   If,
      during the term of this License Agreement, IR grants a license to use the
      Licensed IP Rights in the Field of Use to any third party, IR shall pay to
      APA
      twenty-five percent (25%) of the Net Revenues received from such third party
      during the term of this License Agreement. As used in this Section, "Net
      Revenues" means all amounts received by IR in payment for such license less
      all
      costs incurred by IR in connection with such license (including without
      limitation all costs incurred in connection with the negotiation, implementation
      and administration of such license), as determined by IR in its sole discretion.
      Such payments shall be made to APA within thirty (30) days of IR's receipt
      of
      the corresponding payment from the third party.

    

    9.2    If,
      during the term of this License Agreement, IR receives a payment from a third
      party by reason of such third party's infringement of the Licensed Patents
      in
      the Field of Use (whether by reason of legal action, settlement or otherwise),
      IR shall pay to APA twenty-five percent (25%) of the Net Recovery received
      from
      such third party. As used in this Section, "Net Recovery" means all amounts
      received by IR by reason of such third party's infringement of the Licensed
      Patents in the Field of Use less all costs incurred by IR in connection with
      obtaining such payment (including without limitation attorneys' fees and fees
      of
      experts and accountants), as determined by IR in its sole discretion. Such
      payments shall be made to APA within thirty (30) days of IR's receipt of the
      corresponding payment from the third party.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    9.3   APA
      promptly shall inform IR in writing of any actual or suspected infringement
      of
      any of the Licensed Patents of which APA becomes aware during the term of this
      License Agreement.

    

    Article
      10 - Miscellaneous

    

    10.1   Notices.
      All
      notices, requests and other communications hereunder must be in writing and
      shall be deemed to have been duly given if delivered personally or by facsimile
      transmission or mailed (first class postage prepaid) to the other Party at
      the
      following addresses or facsimile numbers:

    

    If
      to
      APA, to:

    

    APA
      Enterprises, Inc.

    2950
      N.E.
      84th
      Lane

    Blaine,
      MN 55449

    Facsimile
      No.: (763) 784-2038

    Attn:
      President

     

    If
      to IR,
      to:

    

    International
      Rectifier Corporation

    233
      Kansas Street

    El
      Segundo, CA 90245

    Facsimile
      No.: (310) 726-8484

    Attn:
      Executive Vice President and General Counsel

     

    All
      such
      notices, requests and other communications shall be deemed given upon receipt.
      Either Party from time to time may change its address, facsimile number or
      other
      information for the purpose of notices to that Party by giving notice specifying
      such change to the other Party.

    

    10.2   Severability.
      If any
      provision of this License Agreement shall be held to be illegal, invalid or
      unenforceable, and if the rights or obligations of a Party hereunder will not
      be
      materially adversely affected thereby, the Parties agree that such provision
      will be enforced to the maximum extent permissible so as to effect the intent
      of
      the Parties, and the validity, legality and enforceability of the remaining
      provisions of this License Agreement shall not in any way be affected or
      impaired thereby. If necessary to effect the intent of the Parties, the Parties
      will negotiate in good faith to amend this License Agreement to replace the
      unenforceable language with enforceable language which as closely as possible
      reflects such intent.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    10.3   Amendments.
      This
      License Agreement may be amended or modified only by a written instrument signed
      by both Parties.

    

    10.4   Waiver.
      Any
      waiver by a Party of an instance of the other Party's noncompliance with any
      obligation or responsibility hereunder shall be in writing and signed by the
      waiving Party and shall not be deemed a waiver of other instances of the other
      Party's noncompliance hereunder.

    

    10.5   No
      Assignment.
      This
      License Agreement shall be binding upon and inure to the benefit of and be
      enforceable by the respective successors and permitted assigns of the Parties.
      Nothing in this License Agreement shall confer any rights upon any person other
      than the Parties and their respective successors and permitted assigns. Neither
      Party may assign this License Agreement or its rights hereunder to any person
      without the written consent of the other Party. No assignment by either Party
      of
      this License Agreement or of any of such Party's rights hereunder shall release
      such Party from any of its obligations hereunder. Any attempted assignment
      of
      this License Agreement in violation of this Section shall be void and of no
      effect.

    

    10.6   Construction.
      This
      License Agreement has been negotiated by the Parties and their respective
      counsel and shall be fairly interpreted in accordance with its terms and without
      any strict construction in favor of or against either Party.

    

    10.7   No
      Agency.
      This
      License Agreement shall not constitute either Party as a legal representative
      or
      agent of the other Party, nor shall a Party have the right or authority to
      assume, create or incur any liability of any kind, expressed or implied, against
      or in the name or on behalf of the other Party.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    10.8    Relationship
      of the Parties.
      Nothing
      in this License Agreement is intended to, or shall be deemed to, create a
      partnership or joint venture relationship between the Parties or any of their
      Affiliates for any purpose.

    

    10.9    Governing
      Law.
      This
      License Agreement shall be governed by and construed in accordance with the
      Laws
      of the State of California applicable to a contract executed and performed
      in
      such State, without giving effect to the conflicts of law principles
      thereof.

    

    10.10   Jurisdiction;
      Waiver of Jury Trial.
      The
      Parties hereby agree that any action or proceeding arising out of or related
      to
      this License Agreement shall be conducted only in the County of Los Angeles,
      California. Each Party hereby irrevocably consents and submits to the exclusive
      personal jurisdiction of and venue in the federal and state courts located
      in
      the County of Los Angeles, California. Each Party hereby waives to the fullest
      extent permitted by applicable Law, any right it may have to a trial by jury
      in
      respect of any litigation directly or indirectly arising out of, under or in
      connection with this License Agreement or any transaction contemplated hereby.
      Each Party agrees that service of any summons, complaint or other initial
      pleading made in the manner provided for the giving of notices in Section 10.1
      shall be effective service in such action or proceeding. Nothing in this
      Section, however, shall affect the right of a Party to serve such summons,
      complaint or initial pleading in any other manner permitted by Law.

    

    10.11   Counterparts.
      This
      License Agreement may be signed in two or more counterparts, each of which
      shall
      be an original, with the same effect as if the signatures were upon the same
      instrument, and all of which together shall constitute one and the same
      instrument.

    

    10.12   Entire
      Agreement.
      This
      License Agreement constitutes the entire agreement among the Parties with
      respect to the subject matter hereof and supersedes all prior agreements,
      understandings and negotiations, both written and oral, between the Parties
      with
      respect to the subject matter of this License Agreement. Each Schedule referred
      to herein and attached hereto is an integral part of this License Agreement
      and
      is incorporated herein by reference. No representation, inducement, promise,
      understanding, condition or warranty not set forth herein has been made or
      relied upon by either Party. Neither this License Agreement nor any provision
      hereof is intended to confer any rights or remedies upon any person other than
      the Parties hereto.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have caused this License Agreement to be
      executed by their duly authorized officers or representatives as of the date
      first written above.

    

    
      	
              APA
                ENTERPRISES, INC.

            	 	
              INTERNATIONAL
                RECTIFIER CORPORATION

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	
              /s/
                Anil K. Jain

            	 	
              By:

            	
              /s/
                Alexander Lidow

            
	 	
              Anil
                K. Jain

            	 	 	
              Alexander
                Lidow

            
	 	
              CEO

            	 	 	
              CEO

            

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    LICENSED
      PATENTS

    

    
      	
              1.

            	
              United
                States patent 5,192,987 titled “High Electron mobility transistor with
                GaN/AlGaN Heterojunction”

               

            

    

    
      	
              2.

            	
              United
                States patent 5,296,395 titled “Method of making a high electron mobility
                transistor”

               

            

    

    
      	
              3.

            	
              United
                States patent application filed November 25 2002, claiming priority
                of
                United States provisional application No. 60/428,856 titled “Super lattice
                modification of overlying transistor”

               

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B

    

    LICENSED
      TECHNOLOGY

    

    Limited
      solely to technology and intellectual property acquired by International
      Rectifier from APA under the Asset Purchase Agreement dated March 9, 2006.
      A
      complete description of the technology is provided in items (4) and (5) of
      Schedule 1.1(a)(v) of the Asset Purchase Agreement. 

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    SCHEDULE
      C

    

    APA
      THIRD PARTY LICENSING PROSPECTS

    

    The
      following includes companies with whom APA Enterprises, Inc. intends to
      work:

    

    
      	
              Company

            	 	
              Function

            
	
              Transistors:

            	 	 
	
              Eudyna

            	 	
              transistor
                supply

            
	
              TriQuint

            	 	
              processing
                contract for devices

            
	
              RFMD

            	 	
              processing
                of devices/transistor supply

            
	 	 	 
	
              Power
                Amplifiers:

            	 	 
	
              Chelton
                Micro

            	 	
              PA/transistor
                design

            
	
              Powerwave

            	 	 
	
              NextNet

            	 	 
	
              ADC

            	 	 

    

     

     

    14

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