  We present the first astronomical observations obtained with an Apodizing
Phase Plate (APP). The plate is designed to suppress the stellar diffraction
pattern by 5 magnitudes from 2-9 lambda/D over a 180 degree region. Stellar
images were obtained in the M' band (4.85 microns) at the MMTO 6.5m telescope,
with adaptive wavefront correction made with a deformable secondary mirror
designed for low thermal background observations. The measured PSF shows a halo
intensity of 0.1% of the stellar peak at 2 lambda/D (0.36 arcsec), tapering off
as r^{-5/3} out to radius 9 lambda/D. Such a profile is consistent with
residual errors predicted for servo lag in the AO system.
  We project a 5 sigma contrast limit, set by residual atmospheric
fluctuations, of 10.2 magnitudes at 0.36 arcsec separation for a one hour
exposure. This can be realised if static and quasi-static aberrations are
removed by differential imaging, and is close to the sensitivity level set by
thermal background photon noise for target stars with M'>3. The advantage of
using the phase plate is the removal of speckle noise caused by the residuals
in the diffraction pattern that remain after PSF subtraction. The APP gives
higher sensitivity over the range 2-5 lambda/D compared to direct imaging
techniques.
