PROPERTY OF A MAJOR TECHNOLOGY FIRM ASSIGNEE SALE. New 2006

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1 ONSITE & WEBCAST AUCTION SALE PROPERTY OF A MAJOR TECHNOLOGY FIRM ASSIGNEE SALE MECHANOLOGY INC. 20 Townsend Road, Attleboro, MA MACHINERY INSPECTION INTELLECTUAL PROPERTY Aeroturn Mdl. BT-300 CNC Turning Center, S/N: Hardinge Bridgeport Mdl. VMC760XP3 CNC Vertical Machining Center, S/N: 310C148 Schenck Mdl. H20BU Balancer, S/N: AHD-8623S 1997 Fadal Mdl. VMC4020-HT CNC Vertical Machining Center, S/N: With BIDSPOTTER.COM you can bid on items in auctions from anywhere in the world! To register to bid in this Koster Industries Inc. auction, please visit us at SALE DATE: Thursday, July 12, 2012 starting at 10:30 a.m. Inspection Date: Wednesday, July 11 from 8:00 a.m. to 4:00 p.m. or prior to that by appointment Corporate Office: 40 Daniel Street Suite 2 Farmingdale, NY (631) Fax: (631) SALE CONDUCTED BY: AUCTIONEERS APPRAISERS LIQUIDATORS info@kosterindustries.com Branch Office: Boston, Massachusetts (978) Fax: (978)

2 Hardinge Mdl. HVL-H Super Precision Lathe, S/N: HLV-H T Z-Corp Mdl. Z-Printer 310 Plus 3-D Modeling Printer, S/N: Nikken Mdl. CNC321FA 4th Axis Rotary Table, S/N: 8449 Instron Mdl Tensile Tester, S/N: 334 Brown & Sharpe Mdl. GAGE 2000 Gantry Type Coordinate Measuring Machine, S/N: With BIDSPOTTER.COM you can bid on items in auctions from anywhere in the world! To register to bid in this Koster Industries Inc. auction, please visit us at Hexagon Meteorology Romer Infinite Coordinate Measuring Machine (2007) CNC VERTICAL MACHINING CENTERS Hardinge Bridgeport Mdl. VMC760XP3 CNC Vertical Machining Center, 4-axis machine, 12,000 RPM, travels: x-30", y-24", z-24", 30-position automatic tool changer, through spindle coolant, Fanuc 18i controls, glass scales in x/y/z axis, chip conveyor, S/N: 310C148 ( ) Fadal Mdl. VMC4020-HT CNC Vertical Machining Center, 20" x 44" table size, high torque machine, 22-position automatic tool changer, Fadal 32MP cnc controls, Showa lube system, through spindle coolant, S/N: ( 1997) Also: Nikken Mdl. CNC321FA 4th Axis Rotary Table, 12" diameter, S/N: 8449 ( ) SMW Mdl. PT-160 4th Axis Rotary Table CNC TURNING CENTER Aeroturn Mdl. BT-300 CNC Turning Center, 24" swing, 24" cc, 12-station turret, 8" diameter 3-jaw chuck, 3" spindle bore, Fanuc Series Oi-TC controls, hydraulic tailstock, chip conveyor, 20HP, S/N: ( ) [Note: operating hours only 2350] 2

3 Bridgeport Series I Vertical Knee Mill, S/N: BR Sharp Vertical Knee Mill Dynapath Mdl. DELTA CNC Vertical Bed Type Milling Machine, S/N: D A Sharp Mdl. SH " x 24" Hydraulic Feed Surface Grinder, S/N: COORDINATE MEASURING MACHINES Brown & Sharpe Mdl. GAGE2000 Gantry Type Coordinate Measuring Machine, travels: x-18", y-20", z-16", with air bearings, tapped granite surface plate, 500# capacity table, Tesa Tesastar programmable probe head, Brown & Sharpe refl ex software, S/N: ( 2003) Hexagon Meteorology Romer Infinite Coordinate Measuring Machine, with measuring arm, with Dell computer (2007) [Note: in case with full compliment of accessories] INSPECTION & TESTING EQUIPMENT Instron Mdl Tensile Tester, with Instron controls, S/N: 334 ( 1989) Also: Pin gauge sets, Taft Pierce bench center, [3] up to 3' x 5' x 6" thick granite surface plates, full micrometer sets, gauge block sets, 12" & 24" vernier calipers, depth mic set, Fowler bore gauges, cylinder gauges, etc. PROTOTYPING Z-Corp Mdl. Z-Printer 310 Plus 3-D Modeling Printer, with Z-Corp reach-in type recycling unit, S/N: ( ) DoAll Vertical Bandsaw BALANCER Schenck Mdl. H20BU Balancer, with Schenck CAB 700H control cabinet, S/N: AHD-8623S ( 2000) VERTICAL MILLS Dynapath Mdl. DELTA CNC Vertical Bed Type Milling Machine, with 10" x 50" working surface of table, RPM, power draw bar, Delta Auto Con CNC controls, S/N: D A Bridgeport Series I Vertical Knee Mill, with 9" x 42" power feed table, spindle speeds RPM, Acu-Rite 2-axis digital readout, 2HP motor, Bijur lube system, S/N: BR Sharp Vertical Knee Mill, 10" x 50" power feed table, Fagor 2-axis digital readout, 3HP motor LATHE Hardinge Mdl. HVL-H Super Precision Lathe, with power cross slide, inch/metric threading, Acu-Rite 2-axis digital readout, assorted 5-c collets, 3-jaw chuck, S/N: HLV-H T GRINDERS Sharp Mdl. SH " x 24" Hydraulic Feed Surface Grinder, with wheel dresser, 12" x 24" electromagnetic chuck, hydraulic power unit, coolant, S/N: K.O. Lee Mdl. SE612 6" x 12" Hand Feed Surface Grinder, with Ceramax permanent magnetic chuck, S/N: " Double End Carbide Grinder Gorton Mdl. 375 Drill Point Grinder DYNAMOMETERS/GEAR BOXES/OIL COOLERS/ AND MORE [2] Flender Large Gear Boxes, Mdls ; (NEW NEVER USED) American Industrial Mdl. AC-25-3 Oil Cooler, 300-PSI, 400-degrees Fahrenheit max temperature, S/N: HP Eddy Current Dynamometer 100HP Eddy Current Dynamometer [3] LSC Lubrimist Mdl. NV100BBAAASA Oil Misters DeZurik KGC 12" Knife Gate Valves (brand new) [2] Timken Hydraulic Pullers, Mdls. VHPT12 & VHPTS30 GANTRY CRANES, HOISTS & RELATED Wallace Products Mdl ½ Ton Capacity Portable A-Frame Gantry, with 5 ton capacity CM chain fall, chain driven trolley, 14' distance between uprights Portable 8000# Capacity A-Frame Gantry, with 3 ton capacity CM chain fall 1 Ton Capacity Portable A-Frame Gantry, with 1 ton capacity CM chain fall, 8'6" distance between uprights Vestil 360-Degree Freestanding Jib, with CM 1 ton capacity chain fall 3

4 Toyota Mdl. 7FGCU # Capacity Propane Forklift Truck, S/N: GMC Flatbed Truck Dust Collection Systems [2] Flender Large Gear Boxes (NEW NEVER USED) Wallace Products Mdl /2 Ton Capacity Portable A-Frame Gantry Westward Mdl. 3ZC71H 2 Ton Capacity Engine Hoist Air Hetra Heavy Duty Hydraulic Engine Stand Eriez 3 Ton Capacity Lifting Magnet ROLLING STOCK Toyota Mdl. 7FGCU # Capacity Propane Forklift Truck, with 198" reach, 3-stage mast, side shifter, solid tires, S/N: GMC 3500 Flatbed Rack Body Truck, with dual rear tires, wood deck, automatic transmission, gas engine, 12' bed, 122,323 miles AIR COMPRESSORS Speedaire 25HP 2-Stage Tank Mounted Horizontal Air Compressor Ingersoll Rand 15HP 2-Stage Tank Mounted Horizontal Air Compressor Sullair Mdl. SRHT Refrigerated Compressed Air Dryer, S/N: DUST COLLECTORS Air Flow Dust Collection System, with bag type dust collector, approximately 4000 CFM RAW MATERIAL Large Quantity of Raw Material, including tool steel, bronze, stainless, carbon steel, etc. MISCELLANEOUS MACHINERY DoAll 20" Vertical Metal Cutting Bandsaw, with butt welder attachment, chain pull, 26" x 26" tilting table, S/N: (1992) Roll-In-Saw Vertical Traveling Bandsaw Jelenko Vacutrol Mdl. A Bell Vacuum Casting Machine Blue M Mdl. POM-566C Single Door Electric Oven, 19" x 18" x 17" inside dimensions, 240V/1PH 300-degrees, 572-degrees max temperature, with Blue M chart recorder, S/N: P Thermolyne Type 2000 Mdl. F-C2025P Single Door Bench Type Heat Treat Oven, with Omega digital temperature controls, 120V, 18.6 amps, S/N: Econoline Mdl. RA-36-1 Reach-In Type Shot Blast Cabinet, with dust collector, S/N: E O Haus Mdl. I5S 4' x 5' Diamond Deck Platform Scale, with O Haus 5000# capacity digital weight indicator KD Mdl Torque Wrench, 600' lbs. Tub Type Parts Washer 1100-Gal. Air Receiving Tank MISCELLANEOUS SHOP SUPPORT 12" rotary table, [2] small media type tumblers, 6" x 12" belt/disc sander, forklift man basket, hydraulic pallet jack, [2] 2 ton capacity engine lifts, hydraulic die lift truck, Westward 750# capacity engine stand, screw press, [2] 5 & 10HP AC motors, [3] Starrett granite plates, [2] oil coolers, [2] Fanex heat exchangers, PC rack, [3] Lubrimist oil misting systems, assorted pneumatic gate valves, [3] rolling toolboxes with hand tools, 6" Kurt milling vises, 8" Kurt milling vise, collets, Cat 40 tool holders, drills, taps, reamers, hand tools, etc. OFFICE FURNITURE & EQUIPMENT Modular Type Offi ce Furniture (approximately 13 assorted work stations & partitioning) with desks, chairs, cabinets, etc. 8' x 3' conference table with [8] swivel type arm chairs, lateral fi le cabinets, secretarial type arm chairs, storage cabinets, etc. Panasonic Phone System: P1232 Digital Super Hybrid System, 8EXT Digital Super Hybrid System, Panasonic TVS50 Voice Processing System Large Quantity of Assorted PCs, servers, switch boxes, fl at screen monitors, routers, laserjet printers, computer racks, etc. 4

5 INTELLECTUAL PROPERTY FOR SALE: (Note: Sale of intellectual property subject to assignee confi rmation.) The intellectual property covers the company s two major technologies: the Toroidal Intersecting Vane Machine (TIVM) and the Oscillating Vane Machine (Dragonfl y), and includes all prototypes, test data, technical data (computational models, calculations, presentations), 3D models, drawings and assembly procedures (SolidWorks), patents (both issued and pending), provisional patents, project fi les and ECN records, test stands and equipment. The TIVM is a positive displacement oil-free steam expander comprised of two rotating parts. It has been designed to operate at slow speeds (up to 3600 rpm) and to be cost effective for power recovery applications below 200kW. The current status of the technology is a 25kW machine operating at 35% overall effi ciency at 1800 rpm. The Dragonfly is a positive displacement oil-free air compressor. The current status of the technology is a 30HP, two-stage, oil-free air compressor operating to 150 psig. It currently exhibits effi ciencies superior to oil-fl ooded twin screw and drastically superior to oil-free twin screw compressors. Prototypes: There are fi ve (5) prototypes of Toroidal Intersecting Vane Machines (TIVM) designed and built for air compression, steam expansion, and integrated air compression and expansion. All drawings and assembly procedures exist for each prototype. There are four (4) prototypes of Oscillating Vane Machine compressors (Dragonfl y) including the 1st proofof-concept model, a 7.5HP two-stage air compressor, a 30HP two-stage, oil free air compressor and a 500HP single stage air compressor. All drawings and assembly procedures exist for each prototype. Test Stand #1: Compressor/Expander test stand with 20HP, 8000 RPM Servo Drive Motor and controls; Torque Transducer; 9000 RPM Spindle; Mounted on 10 ft x 4 ft steel frame with 1½" thick steel top plate drilled and tapped ½-13 on 8" centers. Contained within frame is fl ow circuit comprised of compressor inlet fi lter, compressor inlet fl ow meter (LFE), compressor discharge fi lter, compressor discharge fl ow meter (LFE), expander inlet fl ow meter (LFE), expander discharge fi lter, expander discharge fl ow meter (LFE) and all piping (stainless steel). Also includes air heater and humidifi er, high fl ow back pressure valve, low fl ow back pressure valve, manometers for each of four circuits and Data Acquisition Cabinet, electronics and hardware. Test Stand #2: Air Compressor test stand with 60HP AC Motor with variable speed drive; Torque Transducer; Mounted on 96" x 30" welded steel base. Also includes: assorted shaft couplings, Portable Lubrication Cart, 60 gallon receiver, Air inlet fi lter, Back Pressure Valve, Air discharge fl ow meter (LFE), water to air intercooler, National Instruments high speed and low speed data acquisition hardware. Test Stand #3: Steam rig comprised of 1½" inlet piping and 3" discharge piping with steam inlet control valve, steam inlet mass fl ow meter, steam back pressure control valve, 100HP Land & Sea Eddy Current Dyno, 300HP Land & Sea Eddy Current Dyno, torque transducer, pulse generator for RPM measurement, various shaft couplings, framework comprised of 80/20 aluminum and welded steel table measuring 6 ft x 3 ft. Includes forced air cooling and duct work for dynos and stand alone data acquisition system using National Instruments equipment. Corporate Office: 40 Daniel Street Suite 2 Farmingdale, NY (631) Fax: (631) SALE CONDUCTED BY: AUCTIONEERS APPRAISERS LIQUIDATORS info@kosterindustries.com 5 Branch Office: Boston, Massachusetts (978) Fax: (978)

6 Hardinge Bridgeport Mdl. VMC760XP3 CNC Vertical Machining Center, S/N: 310C148 PROPERTY OF A MAJOR TECHNOLOGY FIRM Assignee Sale MECHANOLOGY INC. 20 Townsend Road, Attleboro, MA IMPORTANT NOTICE TO ALL BUYERS REGARDING AUCTION PAYMENT: 15% Buyer s Premium. A minimum deposit of 25% on all lots purchased is required at the time of sale in cash, certified or cashier s check. Company or personal checks will be accepted only if accompanied by a letter from the payor s bank guaranteeing unqualified payment to Koster Industries Inc. All checks must be made payable to the order of Koster Industries Inc. Direct bank wire transfers to the account of Koster Industries Inc. on balances due will be accepted with prior arrangement. No lot may be removed until complete settlement is made. IMPORTANT NOTICE: Although information has been obtained from sources deemed reliable, the auctioneer makes no warranty or guarantee, expressed or implied, as to the accuracy of the information herein contained. It is for this reason that buyers should avail themselves of the opportunity to make inspection prior to the sale. AUCTIONEERS APPRAISERS LIQUIDATORS 40 Daniel Street, Suite 2, Farmingdale, NY, Fax Koster Industries Inc. MA License #AU1576 Presorted First-Class Mail U.S. Postage P A I D Twin Cities, MN Permit #93723 AXP/ ONSITE & WEBCAST AUCTION SALE MACHINERY INSPECTION INTELLECTUAL PROPERTY 2000 Schenck Mdl. H20BU Balancer, S/N: AHD-8623S DIRECTIONS: PROPERTY OF A MAJOR TECHNOLOGY FIRM Assignee Sale MECHANOLOGY INC. 20 Townsend Road, Attleboro, MA From Logan International Airport: Head southeast & follow signs for I-90 W/I-93 S/Williams Tunnel/Mass Pike & merge onto I-90 W. Take Exit 24 for I-93. Continue on ramp and merge onto I-93 S. Take Exit 1 to merge onto I-95 S towards Providence, RI. Take Exit 3B to merge onto MA-123W/South Ave. towards S. Attleboro. Turn left onto Tiffany Street. Take the 3rd right onto County Street. Take the 2nd right onto Frank Mossberg Dr. Take the 1st right onto Townsend Road. From Providence RI Airport: Head northeast onto Airport Connector Road. Keep right at fork and follow signs for I-95N/ Providence and merge onto I-95N. Take Exit 3 for MA-123 towards Attleboro. Turn right onto MA-123 E/South Ave. Turn right onto County Street. Turn right onto Frank Mossberg Dr. Take the 1st right onto Townsend Road. With BIDSPOTTER.COM you can bid on items in auctions from anywhere in the world! To register to bid in this Koster Industries Inc. auction, please visit us at SALE DATE: Thursday, July 12, 2012 starting at 10:30 a.m. Inspection Date: Wednesday, July 11 from 8:00 a.m. to 4:00 p.m. or prior to that by appointment

FABRICATING & STAMPING MACHINERY Excess Inventory of CFM CORPORATION. Auction Date: Thursday, October 16th, 2008, at 10:30 a.m.

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