Document:

ex10_23.htm

    
      
        

      

    

    Exhibit  10.23

    

    AGREEMENT
      TO PROVIDE ADDITIONAL COLLATERAL

    

    This
      Agreement is made as of June 28,
      2007, by and between Anil K. Jain ("Jain"), Photonics International, Inc.,
      an
      entity wholly owned by Jain ("Buyer"), APA Optronics (India) Private Limited,
      and APA Enterprises, Inc. ("APA").

    

    Background

    

    1.           Photonics
      International, Inc. ("Buyer"), an entity wholly owned by Jain has entered into
      a
      Stock Purchase Agreement with APA for purchase from APA of all of APA's interest
      in APA Optronics (India) Private Limited.

    

    2.           Buyer's
      payment obligations under the Stock Purchase Agreement are evidenced by a
      Promissory Note dated June 28, 2007 (the "Note").

    

    3.           The
      Note is secured by the following agreements:

    

    Guaranty
      by Jain

    Stock
      Pledge Agreement from Jain (as grantor and co-trustee under

    Revocable
      Trust dated 12/19/89)

    Separation
      Payments Agreement Pledge from Jain

    

    Agreements

    

    1.           Jain,
      Buyer, and APA Optronics (India) Private Limited hereby agree that if the value
      of the APA stock pledged under the Stock Pledge Agreement listed in Background
      Item 3 is less than $1/share for more than five trading days in any 30 day
      period, each of them will pledge additional collateral, acceptable in form
      and
      amount acceptable to APA in its sole discretion, to secure the obligations
      of
      Buyer to APA under the Stock Purchase Agreement and Note and to secure the
      obligations of Jain under his Guaranty.

    

    2.           Jain,
      Buyer, and APA Optronics (India) Private Limited agree that failure to provide
      such additional collateral within five business days after demand by APA shall
      constitute a default under the Note, the Guaranty from Jain, and the Stock
      Pledge Agreement and Separation Payments Pledge Agreement.  This
      Agreement is deemed by the parties to be a part of the Note, the Guaranty,
      the
      Stock Pledge Agreement, and the Separation Payments Pledge
      Agreement.

     

     

    
      	
              /s/
                Anil K. Jain

            	 	
              APA
                OPTRONICS (INDIA) PRIVATE LIMITED

            
	
              Anil
                K. Jain, PhD 

            	 	 	 
	 	 	 	
              By:

            	
              /s/
                Anil K. Jain

            
	 	 	 	 	
              Anil
                K. Jain

            
	 	 	 	 	 
	 	 	 	
              Its:

            	
              President

            
	 	 	 	 	 
	 	 	 	 	 
	
              APA
                ENTERPRISES, INC.

            	 	
              PHOTONICS
                INTERNATIONAL, INC.

            
	 	 	 	 	 
	
              By:

            	
              /s/
                Ronald G. Roth

            	 	
              By:

            	
              /s/
                Anil K. Jain

            
	 	
              Ronald
                G. Roth

            	 	 	
              Anil
                K. Jain

            
	 	 	 	 	 
	
              Its:

            	
              Chairman

            	 	
              Its:

            	
              Presidentex10_24.htm

    
      

    

    Exhibit
      10.24

    NON-COMPETE
      AGREEMENT

    

    

    THIS
      AGREEMENT dated as June 28, 2007
      by and among PHOTONICS INTERNATIONAL, INC., a Minnesota corporation
      (“Purchaser”), ANIL K. JAIN ("Jain"), APA OPTRONICS (INDIA) PRIVATE LIMITED
      ("APA India"), APA ENTERPRISES, INC., a Minnesota corporation ("Seller"), and
      APA CABLES & NETWORKS, INC., a Minnesota corporation
      ("APACN").  Seller and APACN and their subsidiaries, collectively, are
      referred to herein as "APA".

    

    WITNESSETH:

    

    WHEREAS,
      Seller and Purchaser are
      parties to that certain Stock Purchase Agreement dated June 28, 2007, pursuant
      to which Purchaser will acquire all of the stock of APA India owned by Seller
      (the "Purchase Agreement"); and

    

    WHEREAS,
      Jain is the sole owner of
      Purchaser and has guaranteed the performance of Purchaser's obligations to
      Seller; and

    

    WHEREAS,
      Jain, Purchaser and APA India,
      directly and indirectly, will be financially benefited by the Purchase
      Agreement; and

    

    WHEREAS,
      as a condition to closing the
      Purchase Agreement and in order to satisfy a requirement set forth therein,
      Seller is entitled to receive a covenant not to compete and other agreements
      set
      forth herein from Jain, Purchaser and APA India.

    

    NOW,
      THEREFORE, in consideration of the
      premises and the mutual covenants hereinafter set forth, Purchaser, Seller,
      Jain, and APA India agree as follows:

    

    ARTICLE
      I

    NON-COMPETE
      COVENANTS

    

    1.1           In
      order to satisfy a condition of the Purchase Agreement, during the two (2)
      year
      period commencing with the date of this Agreement, Jain, Purchaser, and APA
      India shall not, directly or indirectly, sell or offer to sell any
      telecommunications products, materials or components of a type offered by APACN,
      as described on Schedule A, to any person or entity who will utilize or
      deploy such products, materials, or components in the United States; provided,
      however, that Jain, Purchaser and APA India may offer and sell such products,
      materials, or components to APACN.

    

    1.2           Within
      five (5) business days after the date of execution of this Agreement, Jain
      and
      Purchaser shall (a) change the website address of APA India from
      "apaoptronics.com" to "apaoptronics.in.com"; or (b) shall prominently state
      on
      said website that the principal executive office of APA India is in
      India.

    

    1.3           During
      the two-year restricted period referenced in Section 1.1 above, APA and APACN
      shall not direct any selling efforts to India or engage in any selling activity
      in India.

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      II

    NON-DISCLOSURE
      COVENANT

    

    During
      and after the term of this
      Agreement, Purchaser, Jain and APA India shall not communicate, divulge or
      use,
      any secret, confidential information, confidential customer list, or trade
      secrets of APACN or Seller.  This obligation shall apply with respect
      to any such item until such item ceases to be secret or confidential, as
      determined by APACN and Seller in their sole discretion.

    

    ARTICLE
      III

    REMEDIES

    

    In
      the event of any actual or
      threatened breach of the provisions of Articles I or II hereof, the injured
      party shall be entitled to all rights and remedies available at law or in
      equity, including without limitation the right to obtain damages for such breach
      or non-adherence and the right to enjoin the party in breach or any person
      or
      entity in or threatening breach or non-adherence from commencing or continuing,
      and to remedy, the activities which constitute such breach or
      non-adherence.  Should Jain, Purchaser or APA India breach any of the
      provisions contained in the Purchase Agreement or related documents, Seller
      shall be entitled to offset its damages against amounts due to Jain from Seller
      as separation payment in connection with his termination as president/chief
      executive officer of Seller.

    

    ARTICLE
      IV

    CONSIDERATION

    

    Jain,
      Purchaser, APA India, Seller, and
      APACN each acknowledge that it will be benefited by the Purchase Agreement
      and
      has received adequate consideration for its covenants contained
      herein.

    

    ARTICLE
      V

    MISCELLANEOUS

    

    5.1           Entire
      Agreement; Use of Terms.  This Agreement, together with the
      Purchase Agreement and the other agreements referenced in the Purchase
      Agreement, contains the entire agreement among the parties, superseding in
      all
      respects any and all prior oral or written agreements or understandings
      pertaining to the subject matter hereof and transactions contemplated hereby,
      and shall be amended or modified only by a written instrument signed by all
      of
      the parties hereto; provided, however, that this Agreement does not supercede
      or
      replace the Nondisclosure and Noncompete Agreement dated May 5, 1999 between
      Seller and Jain.

    

    5.2           Waiver.  No
      waiver by any party of any condition, or of the breach of any term, covenant,
      representation or warranty contained in this Agreement, whether by conduct
      or
      otherwise, in any one or more instances shall be deemed to be or construed
      as a
      further and continuing waiver of any such condition or breach or a waiver of
      any
      other condition or breach of any other term, covenant, representation, or
      warranty of this Agreement, or the agreements and documents executed in
      connection herewith.

    

    5.3           Binding
      Effect; Assignment.  This Agreement shall be binding upon and
      shall inure to the benefit of and be enforceable by, the parties hereto and
      their respective heirs, successors and assigns.

    
      
        
        

        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    5.4           General.  This
      Agreement may be executed in several counterparts, each of which shall be deemed
      to be an original, but all of which shall constitute one and the same
      instrument.  The section headings contained herein are for reference
      purposes only and shall not in any way affect the meaning or interpretation
      of
      this Agreement.  This Agreement shall be governed, enforced and
      construed under the laws of the State of Minnesota, USA.

    

    5.5           Joint
      and Several Liability.  All agreements, covenants,
      representations, and warranties of Jain, Purchaser and APA India hereunder
      shall
      be joint and several obligations of Jain, Purchaser and APA India.

     

    
      
        
          	
                  SELLER:

                	 	
                  PURCHASER:

                
	 	 	 	 	 	 	 
	
                  APA
                    ENTERPRISES, INC.

                	 	
                  PHOTONICS
                    INTERNATIONAL, INC.

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
                  By:

                	
                  /s/
                    Ronald G. Roth

                	 	
                  By:

                	
                  /s/
                    Anil K. Jain  

                
	 	
                  Its:  Chairman

                	 	 	
                  Anil
                    K. Jain  

                
	 	 	 	 	
                  Chief
                    Executive Officer  

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	
                  APA
                    OPTRONICS (INDIA)

                
	 	 	 	
                  PRIVATE
                    LIMITED

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	
                  By:

                	
                  /s/
                    Anil K. Jain  

                
	 	 	 	 	
                  Anil
                    K. Jain  

                
	 	 	 	 	
                  President  

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	
                  /s/
                    Anil K. Jain  

                
	 	 	 	 	
                  Anil
                    K. Jain, as an individual  

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	
                  APA
                    CABLES & NETWORKS, INC

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	
                  By:

                	
                  /s/
                    Cheri B. Podzimek  

                
	 	 	 	 	
                  Its:

                	
                  President 

                

        

      

       

    

    
      
        
        

        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

     

    1.           The
      following "passive" products:

     

    OSP
      optical fiber cabinets

     

    Optical
      fiber frames

     

    Optical
      fiber panels

     

    Optical
      fiber cable, connectors, assemblies and attenuators

     

    Copper
      cable, connectors and assemblies

     

     

    2.          Optical
      branching components, as illustrated on the APACN website (www.apacn.com)
      under "optical products"

     

     

    -4-

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