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\F4\←L\-R\/'7;\+R\→.\→S   Telephone:
\F1\CDecember 1, 1976

Mr. Alan Montross
Naval Research Laboratory
4555 Overlook Avenue S.W.
Washington D. C.  20375

Dear Mr. Montross:
	This letter  is written  with reference  to your  contract  number
N00173-75-C-0582 covering the purchase of a Vicarm Manipulator System from
Vicarm, Inc.

	This letter is to follow up our letter of October 29, 1976 and copy of
same letter sent Nov. 24, 1976.  This letter also confirms receipt of your
telegram of Nov. 26.

	We at Vicarm feel that we have already done more than is  required
of us per  our contract with  you.  And  yet you still  insist on  furthur
documentation and  details  not specifically  called  for in  the  contract
before you consider payment for item 0001AB- the Logic Unit.

	In view of your stand, we have decided to do nothing more for  you
until we  recieve  payment  in  full.  We  therefore  now  offer  you  two
alternatives. You should PAY US IN FULL plus a reasonable sum for your late
payment on this  contract, and then  we will negotiate  settlement of  the
differences specifically relating to the written details of the  contract.
Or you should IMMEDIATELY RETURN the Manipulator System and we will refund
the amount you have paid in full.  

	Vicarm is a small company with very limited resources.  We hereby declare
that we are unable to do anything more for you until payment in full is received.
We also hereby inform you that your posession of an unpaid for manipulator system
is causing us great hardship as we are financially unable to manufacture more systems
until your payment is received , or until you return the system for us to attempt
to resell. Our books are open for your inspection should you care to verify these

	In your telegram you have requested certain additional documentation.
Immediately upon payment we will do the following:\.

	1) Have you send the manipulator system back to us and we will
attempt to modify the electronics to the best of our ability to improve the
system accuracy.  

	2) We will send you source code for our interface test program.  This will
enable you to understand how to implement your own software thru this example.

	3) We will send you more detailed pinout lists for understanding our
interface and control circuits.

\J	Vicarm feels no obligation whatsoever to send you any information on
our solution program algorithms or any other VAL software details other than what
you have already received.   There is nothing in our contract with you which requires
this and our refusal to do so is consistent with industry practice.  The price
we have set on these details( outlined in our letter of Oct. 29) is also 
considered fair by industry standards.

	At this time we also retract any offer of a discount for unacceptable
software.  The fact that you have been using it as a basis for some of your complaints
is sufficient reason for us to believe that it really is of some use to you, and
therefore must remain part of the contract.\.


Yours sincerely,

Victor Scheinman