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\F3\C154 EAST DANA STREET
\CMOUNTAIN VIEW, CA. 94041
\F4\←L\-R\/'7;\+R\→.\→S   Telephone:
\←S\→.415-965-0557
\F1\COctober 17, 1975



Mr. Stephen Carney
Camax
154 East Dana Street
Mountain View, Ca. 94041


Dear Steve:

\J
	The purpose of this letter is to  clarify the current working
understanding Vicarm has with you.

	Approximately three weeks ago you, I and Brian Carlisle met to discuss
an arrangement whereby  you could operate  as an independent  machine
shop within the  Vicarm facilities.  We all verbally  agreed that you
would  be  permitted to  use  the Vicarm  shop  and shop
equipment at  a rate of  $3.00 per hour  for the  first 20 hours  per
week,  and  $2.00 per  hour  for additional  hours  per  week.   This
represented an increase from the  straight $2.00 per hour we  charged
you for the extra, outside jobs you did  while on the Vicarm payroll.
We  also agreed  that you would  quote jobs  from Vicarm on  a basis
similar to that for other jobs.  In the case of prototype  work where
firm  quotes are  difficult, you would  work on  a time  and materials
basis, just as you would do for anyone else.  A day or two after this
meeting, you mentioned to  Brian that you would charge  Vicarm $10.00
per hour  for this prototype work.   The understanding  was that this
rate included your shop use expense to be paid to Vicarm separately.

	Since that first meeting, you have first acquired a new lathe
and more recently  a new mill.  Before  purchase of the new  lathe, I
stated that  I did not anticipate reducing  the shop use charges just
because you moved  your own lathe in.   You did  not comment on  this
statement,  but nevertheless  moved your  lathe in  a couple  of days
later.   Likewise, you moved  your own mill  in more recently without
any advance comments on the shop charges.

	Within the last few days, I understand that you now feel that
our charges are too high.   You state that you cannot continue to pay
the present  rates,  and that  you  have also  raised  your  standard
machining rate to  $15.00 per hour, and  that even if we  reduced our
shop charges to you to a flat rate of $2.00 per hour you could not do
work for Vicarm for less than  $15.00 per hour on time and  materials
jobs.

	I feel that  the current arrangement is fair.   The fact that
you  voluntarily chose to  purchase and install your  own machines is
immaterial to our  agreement, and because you  have no time
commitment to  use the Vicarm  shop, I see  no reason why  our charge
schedule should be changed.

	This letter shall reaffirm our verbal agreement that shop use
charges are $3.00 per hour for the first 20 hours per week, and $2.00
per hour for all additional hours per week.\.
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Yours sincerely,



Victor Scheinman
    President

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