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DANA STREET \CMOUNTAIN VIEW, CA. 94041 \F4\←L\-R\/'7;\+R\→.\→S
Telephone: \←S\→.415-965-0557 \F1\CApril 1, 1976
Mr. J. Engleberger President Unimation Shelter Rock Road Danbury,
Conn.
Dear Joe:
\J
Thank you for inviting me to Unimation to discuss our joining
forces in the area of manipulator development and manufacture. I
enjoyed talking with you, Ed Purzley, and Bud Palmer.
I have thought about your proposal and have come up with
short list of some of the features I would like to see in a
continuing joint effort.
1) I agree that Vicarm would become a wholly owned subidiary of
Unimation... existing onder the name of Vicarm, just Unimation. The
name is not important.
2) I am very resistant to moving from the Palo Alto, California area,
and thus would strongly prefer to remain in this area. 3) My
interests are in the area of advanced manipulator design and advanced
manipulator instrumentation and sensor design. I would like to see
my future work in these areas, rather than in the area of
manufacturing and production. Specifically, these areas would
include: New manipulator designs, force and touch sensor systems, new
end effectors, and manipulator related accessory devices, including
vision systems, positioning tables, computer based control systems,
and advanced computer based program and control methods.
4) I am still considered a graduate student at Stanford University.
I am listed as a PhD candidate in the special program area of
Automation. This is a special study area I set up a couple of years
ago. I an still seriously interested in completing this PhD program,
and the arrangement I wo completing this program, and the arrangement
I want to set up with you should include some provision for this. I
would be willing to modify my research to include topics of interest
to Unimation.
5) Vicarm is a small company with sales of less than $100,000 last
year. I find that I am more of an engineer than a manager. In
addition I realize that continued expansion is a requirement for
continued viability. I am hesitant to continue to invest more of my
personal resources at this time. By joining with Unimation, I would
be freed of some of the financial and administrative hassles I
currently have, and would be able to more fully apply myself to
automation research and idea development.
6) Vicarm has assets at the present time. We have paid up capital
equipment in the form of a small machine shop, office furniture, and
assembly and test equipment and fixtures. We also have an inventory
of some spare parts, and parts for future orders. Furthur, we have
an assorted collection of R and D items, such as different types of
motors, electronic components, general purpose shop stock material,
Our current order backlog is about $40,000 worth, with most of the
investment in component parts and outside labor completed. Additional
investment in improved electronics and software is still being made but
is NOT required to meet the basic specifications of the current contracts.
We currently have no large debts, and our bank balance is entirely sufficient
to enable delivery of all current orders.
7) Vicarm has another asset... my experience and knowledge in the field of
computer controlled manipulators. This includes the designs of the Stanford Arm
and the M.I.T. Arm.
8) I feel that a reasonable arrangement would include the following-
Purchase of the assets of Vicarm, at current market rate in the case of machine
shop equipment, and office fixtures. I currently estimate this value to be
about $15,000.
Purchase of the inventory assets of Vicarm excluding all items required to complete
our current orders. I estimate this value at $5k.
Purchase of our two demonstrator manipulators (currently nearing completion), at
a value of say $35k (which is 30% below our current selling price for these devices).
A production payments arrangement with me to extend for 7 years. This would cover
the two arms we currently have and be at the rate of say 7% of out the door system
price for the first two years and dropping 1% per year until 2% at the seventh year.
I would like a clause to allow some assurance that resonable efforts would be made
to sell these manipulators.
An employment contract for 3 years with Unimation, at a full time salary of $27,500
per year plus 1.3 times COL.(This is lower that my request earlier, as I feel I
would rather trade benefits and project freedom for salary. In addition, I would
like to have a resonable chance of completing my PhD during this time.
Last, I would want some assurance that you would provide me with an operating budget
sufficient to allow this development effort to progress at a reasonable rate.
We discussed this during out meeting and it looks like $75,000 to $100,000 per year
including all salaries (mine too) and materials might be a reasonale commitment to
start.
I would want to retain the right to complete all current orders, and retain all
payments for these orders. These orders would be completed entirely at Vicarm
expense, and my salary would not start until completion (expected by May 15).
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Yours sincerely,
Victor Scheinman President
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