CONTRIBUTION AGREEMENT
Exhibit 10.36
Execution Copy
CONTRIBUTION AGREEMENT
THIS CONTRIBUTION AGREEMENT (this Agreement) is entered into effective as of July 6, 2012 by and between Superconductor Technologies Inc., a Delaware corporation (STI), and Resonant LLC, a California limited liability company (the Company). The transactions contemplated herein are made with reference to the facts and circumstances below. For ease of reference, capitalized terms used herein without definition have the same meanings as ascribed to them in the Operating Agreement of Resonant LLC dated effective as of May 29, 2012 (the Operating Agreement).
RECITALS
A. The Company was organized on May 29, 2012 by duly filing its Articles of Organization (Form LLC-1) with the Secretary of State of the State of California and is governed by the Operating Agreement.
B. STI is (i) the owner of those certain patents and applications, as described on Exhibit A, together with any related trade secrets, trademarks (including, without limitation, the common law rights to the RcR trademark), copyrights, mask work, design rights, registrations and renewals, recordations, related proprietary information and know-how (collectively, the Intellectual Property); (ii) the licensor of certain commercial software programs, as described on Exhibit A (collectively, the Software); a party by way of quitclaim to certain proprietary agreements, including, without limitation, the Skyworks Agreement and various nondisclosure agreements, as described on Exhibit A (collectively, the Proprietary Contracts), and (iii) the owner of certain equipment related to the Intellectual Property and the Software, as described on Exhibit A (collectively, the Equipment). The Intellectual Property, the Software, the Proprietary Contracts and the Equipment are hereinafter collectively referred to as the Property.
C. Except as specifically set forth in this Agreement, STI has agreed to contribute its entire interest in the Property in a transaction coming within the purview of Section 721 of the Internal Revenue Code of 1986, as amended (the Code) and the corresponding provisions of applicable state income tax laws, and the Company desires to accept from STI, such contribution in exchange for a thirty percent (30%) interest on a fully-diluted basis in the capital and profits of the Company (the LLC Interest).
D. Accordingly, the parties hereto have entered into this Agreement to memorialize the terms and conditions of STIs contribution of the Property and such other matters as the parties hereto deem appropriate.
AGREEMENT
NOW THEREFORE, the parties hereby agree as follows:
1. Contribution.
(a) Subject to the terms and conditions of this Agreement, STI hereby assigns, transfers and contributes (the Contribution) to the capital of the Company, as of the date hereof, all of its right, title and interest in and to the Property, and the Company hereby accepts said Contribution, and to STIs actual knowledge such Property is free and clear of any claims, liens, pledges, options, charges, encumbrances, security interests, licenses, transfer restrictions or other rights of third parties, whether voluntarily incurred or arising by operation of law, except for STIs rights to re-acquire the Property pursuant to the Operating Agreement.
(b) It is the intent of the parties to this Agreement that the Contribution not result in the recognition of taxable income under Code Section 721. Further, the parties acknowledge and agree that no party will take a position inconsistent with such treatment on any tax return filed by such party.
(c) The parties hereto hereby acknowledge and agree that the aggregate fair market value of the Property as of the date hereof is Two Million Four Hundred Thousand Dollars and 00/100 ($2,400,000.00).
2. Company Capital Contribution. The parties hereto hereby acknowledge and agree that the transfer of the Property to the Company by STI as contemplated in Section 1 above is in complete satisfaction of, STIs initial capital contribution obligation described in Section 3.1(c) of the Operating Agreement.
3. Transfer Documents. Concurrently with and from time to time after the execution of this Agreement, the parties hereto shall execute and deliver such documents as in the reasonable opinion of the Company, its legal counsel and STI, as may be necessary from time to time to effectuate the consummation of the transactions contemplated by this Agreement.
4. Costs and Expenses. The Company shall pay all of the costs and expenses incurred in connection with the transfer of the Property contemplated herein.
5. Transfer As-Is. Except for the express covenants, representations and warranties of the parties contained in this Agreement, the Company is acquiring the Property AS-IS without any warranty of STI, express or implied, as to the nature or condition of or title to the Property or its fitness for the Companys intended use of same. Nothing set forth in this Agreement shall require or be deemed to require the Company to assume any obligation or liability of the transferors to any third party. Notwithstanding the foregoing, STI shall not be obligated to transfer all or any portion of the Property if such transfer(s) would cause STI to breach any agreement(s) with any third party.
6. Consent. By execution of this Agreement, STI hereby acknowledges, agrees, approves and consents to the transactions contemplated herein.
7. Companys Covenants, Representations and Warranties. In consideration of STI entering into this Agreement and as an inducement to such party to transfer and convey the Property to the Company, the Company makes the following representations and warranties, each of which is material and is being relied upon by STI (the continued truth and accuracy of which shall constitute a condition precedent to STIs obligations hereunder):
(a) Authority. The Company has the legal right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Agreement have been duly authorized and no other action by the Company is requisite to the valid and binding execution, delivery and performance of this Agreement, except as otherwise expressly set forth herein. This Agreement is the legally valid and binding obligation of the Company, enforceable against the Company in accordance with its terms.
(b) Condition of Property. The Company shall rely solely upon its own investigation concerning its intended use of the Property, the Propertys fitness therefor, and the availability of such intended use under applicable statutes, ordinances, and regulations. The Company further acknowledges STIs cooperation with the Company in connection with the Companys due diligence review of the Property and any related documents shall not be construed as any warranty or
2
representation, express or implied, of any kind with respect to the Property, or with respect to the accuracy, completeness, or relevancy of any such documents, except as expressly set forth herein.
(c) Proceedings. Except as otherwise previously disclosed to the Company in writing, STI has not received written notice of any actions, suits proceedings or governmental investigations pending or threatened against or affecting the Property or the transactions contemplated hereby;
(d) Skyworks. As of the date hereof, neither the Company nor any of Hammond, Fenzi nor Lingren is aware that Skyworks intends to terminate or effectively abandon the Skyworks Agreement or the project contemplated thereby.
(e) Third Party Consents. No consents or waivers of or by any third party are necessary to permit the consummation by the Company of the transactions contemplated pursuant to this Agreement.
8. Reservation of Irrevocable License for Use of Intellectual Property and Software. Notwithstanding anything to the contrary contained in this Agreement, the parties hereto acknowledge and agree that STI hereby reserves a perpetual, irrevocable, non-exclusive, royalty-free, worldwide, assignable, sublicensable license in and to the Intellectual Property and Software (the STI License) under all rights and intellectual property rights (including rights under patent, industrial property, copyright, trademark, trade secret, unfair competition and related laws) therein to make, use, sell, offer for sale, import, copy, modify, create derivative works based upon, distribute, display, perform and transmit any products, software, hardware, methods or materials of any kind that are covered by such rights, for STIs current business and products that are not competitive to the Companys business as currently contemplated (but specifically excluding any new products for the wireless business). For purposes of clarification, the parties acknowledge and agree that the forgoing STI License does not include any rights to use the Intellectual Property or Software for any RF acoustic wave filter technology applications; provided, such applications shall remain the exclusive domain of the Company for so long as the Company owns the Intellectual Property and Software. The Company shall reasonably take all requested actions and execute all requested documents (including entry into any licenses or assignments) at the Companys expense (but without further remuneration) to assist STI in validating, maintaining, protecting, enforcing, and perfecting the STI License. If STI is unable for any reason to secure written consent from the Company on any document for this purpose, then the Company irrevocably designates and appoints STI and its duly authorized officers and agents as the Companys agent and attorney-in-fact, to act for and in the Companys behalf and stead to execute any reasonably necessary documents and to do all other lawfully permitted acts in connection with the foregoing.
9. License for Use of Licensed Property. STI hereby grants the Company a revocable non-exclusive license to use that certain portion of STIs office space, workbenches and equipment (collectively, the Licensed Property) located in Santa Barbara, California, as is reasonably necessary for the Company to conduct its day-to-day business activities for a term beginning on July 6, 2012 and ending thirty days following the date of the closing of the Qualified Equity Financing (as defined in the Operating Agreement). The grant of license under this Section 9 is hereby made on a royalty-free basis; provided, however, that such grant of license shall not interfere with STIs business activities nor require STI to continue or renew the grant of license beyond the term stated herein; provided, further, that the grant of license hereunder shall be at the sole and exclusive risk of the Company, that STI shall have no liability for any loss of or damage to person or property of any user or any person or entity claiming through any use of the Licensed Property and that the Company waives any and all claims against STI for loss or damage to person or property arising out of the use of the Licensed Property.
3
10. Third Party Consent. STI shall have no obligation to obtain the consent or waiver of or by any third party as may be necessary to permit the consummation of the transactions contemplated pursuant to this Agreement, and STI is not currently aware of any such third party consent requirements. If STI is unable to obtain such third party consent or waiver as of the date hereof and STI reasonably determines that in the absence of such third party consent or waiver, STI and/or its affiliates would incur any liability or breach any agreement, then this Agreement shall not constitute a transfer or assignment of the affected Property, and STI shall have no obligation to contribute to the Company the affected Property.
11. Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, or sent by facsimile and shall be deemed received upon the earlier of (a) if personally delivered, the date of delivery to the address of the person to receive such notice, (b) if mailed, three (3) business days after the date of posting by the United States post office, or (c) if given by facsimile, when sent. Any notice, request, demand, direction or other communication sent by facsimile must be confirmed within forty-eight (48) hours by letter mailed or delivered in accordance with the foregoing.
To STI: Superconductor Technologies Inc.
9101 Wall Street, Suite 1300
Austin, TX 78754
Attn: Jeff Quiram, Chief Executive Office
Facsimile No.: (805) 967-0342
To Company: 460 Ward Drive
Santa Barbara, CA 93111
Attn.: Board of Managers
Facsimile No.: (805) 967-0342
Notice of change of address shall be given by written notice in the manner detailed in this Section 9. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent.
12. Legal Fees. In the event of the bringing of any action or suit by a party hereby against another party hereunder arising out of this Agreement or the transaction described herein, then in that event, the prevailing party in such action or dispute, whether by final judgment, or out of court settlement shall be entitled to have and recover of and from the other party all costs and expenses of suit, including actual attorneys fees.
13. Miscellaneous. Each party hereto agrees to perform any further acts, and to execute and deliver (with acknowledgement, verification and/or affidavit, if required) any further documents and instruments at their own expense, including, without limitation, patent assignments and related customary filings with the United States Patent and Trademark Office, as may be reasonably necessary or desirable to implement and/or accomplish the transactions contemplated herein. This Agreement contains and constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and this Agreement may not be modified, amended or otherwise changed in any manner without the prior written consent of all parties hereto. The provisions of this Agreement shall be construed and enforced in accordance with the laws of the State of California. All exhibits attached hereto are hereby incorporated in and made a part of this Agreement as if set forth in full herein. This Agreement may be executed in
4
one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
[signature pages to follow]
5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.
STI | Superconductor Technologies Inc., a Delaware corporation | |
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| By: | /s/ Jeff Quiram |
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| Jeff Quiram |
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| Its: Chief Executive Officer |
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Company | Resonant LLC, a California limited liability company | |
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| By: | /s/ Jeff Quiram |
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| Jeff Quiram |
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| Its: Manager |
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| By: | /s/ Robert B. Hammond |
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| Robert B. Hammond, Ph.D. |
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| Its: Manager |
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| By: | /s/ Terry Lingren |
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| Terry Lingren |
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| Its: Manager |
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Execution Copy
EXHIBIT A
DESCRIPTION OF PROPERTY
Proposed Resonant Issued US Patents
Patent No |
| Short Title |
| Title |
| Category |
| 1st Inventor |
| Country |
| Status |
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8,063,714 |
| FIN2 CONT 2 |
| Low-Loss Tunable Filter Radio Frequency Filter |
| SAW |
| Tsuzuki |
| US |
| issued |
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7,924,114 |
| Optimized Res Order for BRF |
| Electrical Filters with Improved Intermodulation Distortion |
| SAW |
| Tsuzuki |
| US |
| issued |
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7,863,999 |
| FIN2 CONT |
| Low-Loss Tunable Filter Radio Frequency Filter |
| SAW |
| Tsuzuki |
| US |
| issued |
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7,719,382 |
| FIN Reconfigurable Filter |
| Low-Loss Tunable Filter Radio Frequency Filter |
| SAW |
| Tsuzuki |
| US |
| issued |
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7,639,101 |
| FIN2 (FIN1 CIP) |
| Low-Loss Tunable Filter Radio Frequency Filter |
| SAW |
| Tsuzuki |
| US |
| issued |
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7,071,797 |
| Large 1st Resonator |
| Method and Apparatus for Minimizing Intermodulation With an Asymmetric Resonator |
| SAW |
| Ye |
| US |
| issued |
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6,788,175 |
| MEMS Anchors |
| Anchors for Micro-Electro-Mechanical Systems (MEMS) Devices |
| SAW |
| Prophet |
| US |
| issued |
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6,700,459 |
| Dual Mode Resonator |
| Dual-Mode Bandpass Filter with Direct Capacitive Couplings and Far-field Suppression Structures |
| SAW |
| Raihn |
| US |
| issued |
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6,662,029 |
| Eden Tunable Filter 2 |
| High Temperature Superconducting Tunable Filter with an Adjustable Capacitance Gap |
| SAW |
| Eden |
| US |
| issued |
6,633,208 |
| Large 1st Resonator |
| Filter with Improved Intermodulation Distortion Characteristics and Method of Making the Improved Filter |
| SAW |
| Salkola |
| US |
| issued |
6,026,311 |
| SISO |
| High Temperature Superconducting Structures and Methods for High Q, Reduced Intermodulation Resonators and Filters |
| SAW |
| Willemsen |
| US |
| issued |
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5,618,777 |
| Lumped Element Filter |
| High Temperature Superconductor Lumped Elements and Circuit Therefrom |
| SAW |
| Hey-Shipton |
| US |
| issued |
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5,616,539 |
| Lumped Element Filter |
| High Temperature Superconductor Lumped Element Band-Reject Filters |
| SAW |
| Hey-Shipton |
| US |
| issued |
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5,488,382 |
| LNA |
| Low Noise Amplifier |
| SAW |
| Fenzi |
| US |
| issued |
STI and Resonant Propriety
3/19/2014
Proposed Resonant US Pending
Short Title |
| Title |
| 1st Inventor |
| Filing Date |
| Serial No |
| Country |
| Status |
| Category |
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FIN2 CONT 3 |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 10/26/2011 |
| 13/282,289 |
| US |
| pending |
| SAW |
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Mixed Res Filter |
| Mixed Resonator Monolithic Band-Pass Filter with Enhanced Rejection |
| Raihn |
| 4/25/2011 |
| 13/093,539 |
| US |
| published |
| SAW |
Proposed Resonant Foreign Pending
Short Title |
| Title |
| 1st Inventor |
| Filing Date |
| Serial No |
| Country |
| Status |
| Category |
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FIN Reconfigurable Filter |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 5/19/2008 |
| 200680043126.0 |
| CN |
| published |
| SAW |
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FIN Reconfigurable Filter |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 5/13/2008 |
| 06848738.8 |
| EP |
| published |
| SAW |
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FIN Reconfigurable Filter |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 3/3/2009 |
| 09100919.9 |
| HK |
| published |
| SAW |
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FIN Reconfigurable Filter |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 5/13/2008 |
| 2008-541492 |
| JP |
| published |
| SAW |
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FIN2 (FIN1 CIP) |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 12/28/2009 |
| PCT/US08/68677 |
| CN |
| published |
| SAW |
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FIN2 (FIN1 CIP) |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 12/16/2009 |
| 08781133.7 |
| EP |
| published |
| SAW |
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FIN2 (FIN1 CIP) |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 12/21/2009 |
| 2010-515202 |
| JP |
| published |
| SAW |
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FIN Reconfigurable Filter |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 5/16/2008 |
| 1993/KOLNP/2008 |
| IN |
| pending |
| SAW |
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FIN Reconfigurable Filter |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 5/16/2008 |
| 10 ###-###-#### |
| KS |
| pending |
| SAW |
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FIN2 (FIN1 CIP) |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 12/21/2009 |
| 4421/KOLNP/2009 |
| IN |
| pending |
| SAW |
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FIN2 (FIN1 CIP) |
| Low-Loss Tunable Filter Radio Frequency Filter |
| Tsuzuki |
| 1/26/2010 |
| 10 ###-###-#### |
| KS |
| pending |
| SAW |
Schedule B - Equipment and Software
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| Fair Market Price |
| Qty |
| Total cost |
| Description |
| OEM SN |
| STI asset # |
| Location |
| Comments | ||
Software Licences |
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| ||
|
| 0 |
| 1 |
| - |
| *ADS core Floating single site |
| 498468 |
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| license file server |
| W2200BP | ||
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| 0 |
| 1 |
| - |
| *ADS with Momentum Circuit Designer |
| 498465 |
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| license file server |
| E8919L | ||
|
| 0 |
| 1 |
| - |
| *ADS with Momentum Circuit Designer |
| 498466 |
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| license file server |
| E8919L | ||
|
| 0 |
| 1 |
| - |
| *ADS Momentum Optimization |
| 498467 |
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| license file server |
| E8925L | ||
|
| 0 |
| 1 |
| - |
| *MatLab |
| 78701 |
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| Individual |
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| ||
|
| 0 |
| 1 |
| - |
| *MatLab |
| 190445 |
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| Individual |
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| ||
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| 0 |
| 1 |
| - |
| *MatLab |
| 349268 |
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| Individual |
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| ||
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| 0 |
| 1 |
| - |
| *MatLab |
| 360230 |
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| Individual |
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| 0 |
| 1 |
| - |
| *EM by Sonnet (3 seats) |
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| Sonnet-7 computer |
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| 0 |
| 1 |
| - |
| Nodal |
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| STI written software circa 2000 | ||
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Computer hardware |
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| $ | 1,000 |
| 1 |
| $ | 500 |
| Bob Hammond laptop |
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| $ | 500 |
| 1 |
| $ | 250 |
| Neal Fenzi Laptop |
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| computer room |
| Sonnet (lic server), MatLab-7, Limerick, Chunky, Sonnet-7, |
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| $ | 300 |
| 8 |
| $ | 1,200 |
| old workstation computers |
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| (skylight room) |
| Kraihn-7-64, Mac Pro vista, Mac Pro 64 |
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| $ | 50 |
| 5 |
| $ | 125 |
| ~10 yr old computers |
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| clean room |
| for FEMSAW |
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RF Equipment |
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market price from ebay buy it now (reference) |
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| OEM model number |
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| ||
5,000 |
| $ | 5,000 |
| 1 |
| $ | 2,500 |
| Freq source |
| E4421B; 1E5, UNB |
| 241 |
| Cleanroom |
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40,000 |
| $ | 40,000 |
| 1 |
| $ | 20,000 |
| Spectrum ana |
| 8564EC; 001, 005, 006, 008 |
| 253 |
| Cleanroom |
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|
| $ | 2,000 |
| 1 |
| $ | 1,000 |
| Temp test oven |
| Blue M |
| 519 |
| warehouse |
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4,000 |
| $ | 4,000 |
| 1 |
| $ | 2,000 |
| Power Meters , Sensors, & Cables |
| 4418B |
| 319 |
| cleanroom |
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1,000 |
| $ | 1,000 |
| 2 |
| $ | 1,000 |
| Power sensor and cable |
| E9301A |
| 338, 414 |
| cleanroom |
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200 |
| $ | 200 |
| 1 |
| $ | 100 |
| temperature controlled stage for thermal testing |
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| Cleanroom |
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|
800 |
| $ | 800 |
| 1 |
| $ | 400 |
| Cal Kit for VNA |
| HP Type N |
| 372 |
| warehouse |
|
|
900 |
| $ | 900 |
| 1 |
| $ | 450 |
| Cal Kit for VNA |
| 3.5mm cal kit |
| none |
| screen room |
|
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5,000 |
| $ | 5,000 |
| 1 |
| $ | 2,500 |
| Freq source |
| E4425B; UNB |
| 407 |
| Cleanroom |
|
|
|
| $ | 15,000 |
| 1 |
| $ | 7,500 |
| probe station & probes (with vac pump) |
| Mech-El 907 & probes |
| 446 |
| Cleanroom |
|
|
|
| $ | 4,000 |
| 1 |
| $ | 2,000 |
| Wire bonder |
| Hybond 572-40 |
| 448 |
| warehouse |
|
|
13,000 |
| $ | - |
| - |
| $ | - |
| Network ana |
| 8753ES; 006, 010, 1D5 |
| 404 |
| Cleanroom |
| replace with PNA (does not go with Resonant) |
37,000 |
| $ | 37,000 |
| 1 |
| $ | 18,500 |
| 9GHz PNA |
| Agilent N3383A |
|
|
| warehouse |
| wider freq range, network and USB capable |
|
| $ | 5,000 |
| 1 |
| $ | 2,500 |
| microscope |
|
|
| 1321 |
| Cleanroom |
| from cryocable assy (Victor says ok) |
|
| $ | 500 |
| 2 |
| $ | 1,000 |
| DC power supply |
| 722010 Teama |
|
|
|
|
|
|
|
| $ | 50 |
| 2 |
| $ | 100 |
| dry boxes |
|
|
|
|
|
|
|
|
|
| $ | 100 |
| 4 |
| $ | 400 |
| Lab benches, chairs |
|
|
|
|
|
|
|
|
9,000 |
| $ | - |
| - |
| $ | - |
| High power Microscope |
|
|
|
|
| class 100 clean room |
| Needed for HTS filter production (does not go with Resonant) |
|
| $ | 50 |
| 4 |
| $ | 100 |
| amplifiers |
|
|
| 419,421,415,460 |
| Cleanroom |
|
|
|
|
|
|
|
| $ | 100 |
| misc equipment (cables, connectors and components) stored in RF Screen room to be dispositioned, either transferred to Resonant or discarded | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
| $ | 64,225 |
| TOTAL |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| ||
|
|
|
|
|
| Notes: |
|
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|
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|
|
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| ||
|
|
|
|
|
|
|
| * Software licenses are not sellable so have no cash value, but can be transferred to a spin-out. |
|
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| ||
|
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|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
| STI Filter Production is ok after letting the ADS and EM software licenses go with Resonant; but this means STI will not have the software to design new HTS filters. |
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