Document:

ex10_21.htm

    
      

    

    Exhibit
      10.21

    STOCKPLEDGE
      AGREEMENT

    

    

    THIS
      STOCK PLEDGE AGREEMENT, made as of
      this 28th day of June, 2008, by and between Anil K. Jain, Grantor, under that
      certain Revocable Trust Agreement dated December 19, 1989, and Anil K. Jain
      and
      Sandhya Jain, Co-Trustees under said Revocable Trust Agreement (collectively
      “Pledgor”) and APA Enterprises, Inc. (“Secured Party”).

    

    IN
      CONSIDERATION of the mutual covenants and promises herein contained, the Secured
      Party and Pledgor agree:

    

    1. 
      Security Interest.  For value received, Pledgor hereby grants
      Secured Party a security interest in 500,000 shares of common stock, par value
      $.01 per share, of APA Enterprises, Inc. (the shares hereinafter referred to
      as
      the "Shares" and APA Enterprises, Inc. hereinafter referred to as the
      "Company"), together with all rights related thereto.  Upon payment in
      full of the Indebtedness (defined below) without any Event of Default (defined
      below) all Shares shall be returned to Pledgor.

    

    2. 
      Obligation Secured.  The Shares shall secure payment of (i) the
      indebtedness evidenced by that certain Note ("Note" or the "Indebtedness")
      of
      even date herewith between Photonics International, Inc. and the Secured Party
      which is issued pursuant to the terms of the Stock Purchase Agreement dated
      June
      28, 2007 (the “Stock Purchase Agreement”) and (ii) the Guaranty of the Note by
      Anil K. Jain.

    

    3. 
      Representations, Warranties and Agreements.  Pledgor represent,
      warrant and agree that:

    

    
      	
            	
              a.

            	
              Pledgor
                has delivered to Secured Party certificates representing the Shares,
                along
                with duly executed stock powers, in
                blank.

            

    

    

    
      	
            	
              b.

            	
              Pledgor
                is the owner of the Shares free and clear of all liens, encumbrances,
                security interests, restrictions on transfer and other restrictions,
                except this security interest.

            

    

    

    
      	
            	
              c.

            	
              Pledgor
                will keep the Shares free and clear of all liens, encumbrances, security
                interests and restrictions, except this security interest, will defend
                the
                Shares against all claims and demands of anyone other than Secured
                Party,
                and will not sell or otherwise dispose of the Shares or any interest
                therein.

            

    

    

    
      	
            	
              d.

            	
              Pledgor
                will pay when due all taxes and other governmental charges levied
                or
                assessed upon or against any
                Shares.

            

    

    

    
      	
            	
              e.

            	
              The
                Shares are fully paid and
                non-assessable.

            

    

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
            	
              f.

            	
              Pledgor
                will deliver to Secured Party in pledge as additional security any
                securities distributed on account of the Shares such as stock dividends
                or
                securities arising from stock splits, reorganizations or
                recapitalizations.  This subparagraph shall not be construed to
                authorize distributions if such distributions are prohibited by any
                other
                agreement between the parties.

            

    

     

    4. 
      Events of Default.  The occurrence of any of the following
      events shall constitute an Event of Default:

    

    
      	
            	
              a.

            	
              Failure
                by Pledgor or Photonics International, Inc. to honor or perform any
                of the
                terms and conditions of the Note.

            

    

    

    
      	
            	
              b.

            	
              Default
                by Photonics International, Inc. in the payment when due of the principal
                of any Indebtedness, any installment thereto, or any interest thereon,
                whether at maturity, by acceleration, or
                otherwise.

            

    

    

    5.  
      Remedies in Event of Default.  Upon the occurrence of an Event
      of Default and at any time thereafter, Secured Party may give notice of Event
      of
      Default to Pledgor.  If said Event of Default is not cured within
      thirty (30) days after said notice is given, the entire Indebtedness shall,
      at
      Secured Party’s option, become immediately due and payable without notice,
      presentment, demand, protest or notice of protest of any kind, all of which
      are
      expressly waived by Pledgor; and Secured Party may exercise and enforce with
      respect to the Shares any or all rights and remedies available upon default
      to a
      secured party under the Uniform Commercial Code, including the right to offer
      and sell the Shares privately to purchasers who will agree to take the Shares
      for investment and not with a view to distribution and who will agree to the
      imposition of restrictive legends on the certificates representing the Shares,
      and the right to arrange for a sale which would otherwise qualify as exempt
      from
      registration under the Securities Act of 1933.  If notice to Pledgor
      of any intended disposition of the Shares or any other intended action is
      required by law in a particular instance, such notice shall be deemed
      commercially reasonable if given at least ten (10) calendar days prior to the
      date of intended disposition or other action.  Upon satisfaction of
      the Indebtedness and all costs of collection and enforcement of this Agreement
      and the Guaranty, any Shares remaining shall be returned to
      Pledgor.  Nothing in this Agreement shall abridge Secured Party’s
      right to exercise or enforce any or all other rights or remedies available
      to
      Secured Party by law or agreement against the Shares, against Pledgor or against
      any other person or property.

    

    6.  
      Waiver.  Pledgor waives any right that Pledgor may have to
      require Secured Party to proceed against any other person, to proceed against
      or
      exhaust collateral or any part thereof, or to pursue any other remedy that
      Secured Party may have.  Pledgor consents to any and all extensions of
      time, renewals, waivers or modifications of any of the terms and conditions
      of
      any Indebtedness that may be granted by Secured Party, to release the security
      or any part thereof with or without substitution, and to the release,
      substitution, or addition of any parties primarily or secondarily liable on
      any
      Indebtedness.  Notice of any of the above is hereby waived by
      Pledgor

    
      
        
        

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    7.  
      Miscellaneous.  Any disposition of the Shares in the manner
      provided in Paragraph 5 shall be deemed commercially reasonable.  This
      Agreement can be waived, modified, amended, terminated or discharged, and this
      security interest released, only explicitly in a writing signed by Secured
      Party.  A waiver signed by Secured Party shall be effective only in
      the specific instance and for the specific purpose given.  Mere delay
      or failure to act shall not preclude the exercise or enforcement of any of
      Secured Party’s rights or remedies.  All rights and remedies of
      Secured Party shall be cumulative and may be exercised singularly or
      concurrently, at Secured Party’s option, and the exercise or enforcement of any
      one such right or remedy shall neither be a condition to nor bar the exercise
      or
      enforcement of any other.  All notices to be given to Pledgor shall be
      deemed sufficiently given if delivered or mailed by registered or certified
      mail, postage prepaid, to Pledgor at the most recent address shown on Secured
      Party’s records.  Secured Party’s duty of care with respect to the
      Shares in its possession (as imposed by law) shall be deemed fulfilled if
      Secured Party exercises reasonable care in physically safekeeping the Shares
      or
      exercising reasonable care in the selection of the bailee or other third person
      as custodian of the Shares, and Secured Party need not otherwise preserve,
      protect, insure or care for the Shares.  Secured Party is not
      obligated to preserve any rights Pledgor may have against prior parties, to
      realize on the Shares at all or in any particular manner or order, or to apply
      any cash proceeds of the Shares in any particular order of
      application.  Pledgor will reimburse Secured Party for all expenses
      incurred in disposing of the Shares or otherwise enforcing this security
      interest (including reasonable attorneys' fees and legal
      expenses).  This Agreement shall be binding upon and inure to the
      benefit of Pledgor and Secured Party and their respective successors and
      assigns.  Except to the extent otherwise required by law, this
      Agreement shall be governed by the internal laws of the State of Minnesota
      and,
      unless the context otherwise requires, all terms used herein which are defined
      in Articles 1 and 9 of the Uniform Commercial Code, as in effect in said State,
      shall have the meanings therein stated.  If any provision or
      application of this Agreement is held unlawful or unenforceable in any respect,
      such illegality or unenforceability provision or application had never been
      contained herein or prescribed hereby.  All representations and
      warranties contained in this Agreement shall survive the execution, delivery
      and
      performance of this Agreement and the creation and payment of the
      Indebtedness.

    

    8.  
      Additional Agreement.  That certain Agreement to Provide
      Additional Collateral, of even date herewith, is deemed to be a part of this
      Agreement.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
      first above written.

    

    
      	
              Secured
                Party:

            	 	
              Pledgor:

            
	 	 	 	 	 
	
              APA
                Enterprises, Inc.

            	 	
              /s/
                Anil K. Jain

            
	 	 	 	 	
              Anil
                K. Jain, Co-Trustee and Grantor under

            
	
              By:

            	
              /s/
                Ronald G. Roth

            	 	
              Revocable
                Trust Agreement dated

            
	 	
              Its

            	
              Chairman

            	 	
              December
                19, 1989

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	
              /s/
                Sandhya Jain

            
	 	 	 	 	
              Sandhya
                Jain, Co-Trustee under Revocable

            
	 	 	 	 	
              Trust
                Agreement dated December 19, 1989

            

    

     

     

    3ex10_22.htm

    
      

    

    Exhibit
      10.22

    

    SEPARATION
      PAYMENTS PLEDGE AGREEMENT

    

    

    THIS
      SEPARATION PAYMENTS PLEDGE
      AGREEMENT, made as of this 28th day of June, 2007, by and between Anil K. Jain
      (“Pledgor”) and APA Enterprises, Inc. (“Secured Party”).

    

    IN
      CONSIDERATION of the mutual covenants and promises herein contained, the Secured
      Party and Pledgor agrees:

    

    1. 
      Security Interest.  For value received, Pledgor hereby grants
      Secured Party a security interest in all payments ("Payments") to be received
      by
      him under that certain Amended and Restated Agreement Regarding
      Employment/Compensation Upon Change in Control, dated September 15, 2005, as
      supplemented by Supplemental Separation Agreement dated June 28, 2007
      (collectively the "Separation Agreement").

    

    2. 
      Obligation Secured.  The Pledge secures payment of the
      indebtedness evidenced by that certain promissory note ("Note" or the
      "Indebtedness") of even date herewith between Photonics International, Inc.
      and
      the Secured Party and the Guaranty by Pledgor of said Note.  The Note
      represents the payment due under that certain Stock Purchase Agreement dated
      of
      even date herewith between Photonics International, Inc., as Buyer, and Secured
      Party, as Seller.

    

    3. 
      Representations, Warranties and Agreements.  Pledgor
      represents, warrants and agrees that:

    

    
      	
            	
              a.

            	
              The
                Payments are free and clear of all liens, encumbrances, security
                interests, restrictions on transfer and other restrictions, except
                this
                security interest.

            

    

    

    
      	
            	
              b.

            	
              Pledgor
                will keep the Payments free and clear of all liens, encumbrances,
                security
                interests and restrictions, except this security interest, will defend
                the
                Payments against all claims and demands of anyone other than Secured
                Party, and will not sell or otherwise dispose of the Payments or
                any
                interest therein.

            

    

    

    4. 
      Events of Default.  The occurrence of any of the following
      events shall constitute an Event of Default:

    

    
      	
            	
              a.

            	
              Failure
                by Pledgor to honor or perform any of the terms and conditions of
                this
                Agreement, the Guaranty, the Note, the Stock Pledge Agreement, the
                Agreement to Provide Additional Collateral, the Non-Compete Agreement,
                or
                any other agreement between any of the parties hereto or evidencing
                or
                securing the Indebtedness.

            

    

    

    
      	
            	
              b.

            	
              Default
                by Photonics International, Inc. in the payment when due of the principal
                or interest of the Note, any installment thereto, or any interest
                thereon,
                whether at maturity, by acceleration, or
                otherwise.

            

    

    
      
        
        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5. 
      Remedies in Event of Default.  Upon the occurrence of an Event
      of Default and at any time thereafter, Secured Party may give notice of Event
      of
      Default to Pledgor.  If said Event of Default is not cured within
      thirty (30) days after said notice is given then Secured Party may withhold
      Payments from Pledgor and apply the same to cure the Event of
      Default.  Nothing in this Agreement shall abridge Secured Party’s
      right to exercise or enforce any or all other rights or remedies available
      to
      Secured Party by law or agreement against Pledgor or against any other person
      or
      property.

    

    6. 
      Waiver.  Pledgor waives any right that Pledgor may have to
      require Secured Party to proceed against any other person, to proceed against
      or
      exhaust collateral or any part thereof, or to pursue any other remedy that
      Secured Party may have.  Pledgor consents to any and all extensions of
      time, renewals, waivers or modifications of any of the terms and conditions
      of
      any Indebtedness that may be granted by Secured Party, to release the security
      or any part thereof with or without substitution, and to the release,
      substitution, or addition of any parties primarily or secondarily liable on
      any
      Indebtedness.  Notice of any of the above is hereby waived by
      Pledgor.

    

    7 
      .Miscellaneous.  The remedies provided in Paragraph 5 shall be
      deemed commercially reasonable.  This Agreement can be waived,
      modified, amended, terminated or discharged, and this security interest
      released, only explicitly in a writing signed by Secured Party.  A
      waiver signed by Secured Party shall be effective only in the specific instance
      and for the specific purpose given.  Mere delay or failure to act
      shall not preclude the exercise or enforcement of any of Secured Party’s rights
      or remedies.  All rights and remedies of Secured Party shall be
      cumulative and may be exercised singularly or concurrently, at Secured Party’s
      option, and the exercise or enforcement of any one such right or remedy shall
      neither be a condition to nor bar the exercise or enforcement of any
      other.  All notices to be given to Pledgor shall be deemed
      sufficiently given if delivered or mailed by registered or certified mail,
      postage prepaid, to Pledgor at the most recent address shown on Secured Party’s
      records.  Secured Party is not obligated to preserve any rights
      Pledgor may have against other parties, to realize on the Payments at all or
      in
      any particular manner or order, or to apply the Payments in any particular
      order.  Pledgor will reimburse Secured Party for all expenses incurred
      in enforcing this security interest (including reasonable attorneys' fees and
      legal expenses).  This Agreement shall be binding upon and inure to
      the benefit of Pledgor and Secured Party and their respective successors and
      assigns.  Except to the extent otherwise required by law, this
      Agreement shall be governed by the internal laws of the State of Minnesota
      and,
      unless the context otherwise requires, all terms used herein which are defined
      in Articles 1 and 9 of the Uniform Commercial Code, as in effect in said State,
      shall have the meanings therein stated.  If any provision or
      application of this Agreement is held unlawful or unenforceable in any respect,
      such illegality or unenforceability provision or application had never been
      contained herein or prescribed hereby.  All representations and
      warranties contained in this Agreement shall survive the execution, delivery
      and
      performance of this Agreement and the creation and payment of the
      Indebtedness.

    
      
        
        

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    8. 
      Additional Agreement.  That certain Agreement to Provide
      Additional Collateral, of even date herewith is deemed to be a part of this
      Agreement.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
      first above written.

     

    

    
      	
              Secured
                Party:

            	 	
              Pledgor:

            
	 	 	 	 	 
	 	 	 	 	 
	
              APA
                ENTERPRISES, INC.

            	 	
              /s/
                Anil K. Jain

            
	 	 	 	 	
              Anil
                K. Jain

            
	 	 	 	 	 
	
              By:

            	
              /s/
                Ronald G. Roth

            	 	 
	 	
              Its

            	
              Chairman

            	 	 

    

     

     

    3

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