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\|\\M1BDR30;\M2SIGN57;\M3NGR25;\M4NGR20;\F3\CVictor Scheinman
\F3\C523 Hillside Drive
\CWoodside, CA. 94062
\F4\←L\-R\/'7;\+R\→.\→S   Telephone:
\←S\→.415-851-3241
\F1\CSeptember 20, 1979



Mr. Joseph F. Engelberger
President 
Unimation Inc.
Shelter Rock Lane
Danbury, Conn. 06810


Dear Joe:

\J Unimation has an Employment and Royalty Agreement with me.  Under
section 8 of this agreement, Unimation has agreed to pay royalties on
certain Vicarm components or portions of components which it may choose to
use in their own manipulators or other products.

As sales of these products have been minimal in the past two years, I have
not concerned myself with the lack of the semi-annual statements or
payments.  But, since Unimation is now actively marketing the PUMA robot
system, the Unimate 250, and is considering applying the VAL system to
their standard Unimate 2000/4000 series robots, I feel that I should now
be paid royalties, as due, when due.

I feel that our contract is quite clear on all points execpt one.  "The
Allocated Sales Price".  Although "allocated sales price" may seem like an
easy number to relate to, it is a difficult number to arrive at especially
in so complex a system as the PUMA robot system or the like.  I thus would
like to suggest some reasonable numbers for you to consider using in your
computations of royalties due.

For PUMA robots and Model 250 robots I feel that 40% of the basic system
selling price represents the Vicarm portion of the components used in the
system.  For Vicarm type 6-axis force sensors, touch sensors, and force
sensing fingers, I suggest that 80% of the selling price is a reasonable
"allocated sales price".  For Unimate 2000/4000 robots using the LSI-11,
VAL system software and operating concepts a 25% figure seems appropriate.

Your payments for the 6 month period February 1 to July 31,1979 is due by
September 30th.  My estimates are that you have been paid for
approximately 5-10 PUMA robot systems (including prototype #1 delivered to
GM in May 1978), and one force balance and force sensing finger set also
sold to GM.  Your accounting should indicate the actual
numbers and costs involved.\.
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\←L\→.Yours sincerely,



\←L\→.Victor Scheinman

\←S\→L
VDS:pdp10