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Dear Mr. Montross:
	Per  your  recent  telephone  request,  Vicarm  proposes  the
following    new   delivery    schedule   for   our    contract   No.
N00173-75-C-0582.  We will ship to you all hardware and  software due
on this contract on or before  August 20, 1976.  Although our hardware
will be ready for delivery by July 20, 1976, we have decided to delay
hardware shipment to simplify and expedite completion of the software
part of this contract.  Thus, we propose to ship all at once.

	As  this  contract  is  overdue,  we  propose  the  following
additional offer in lieu of any monetary penalties.  Sometime  before
October 1,  1976, a  member of  the Vicarm  staff will  visit NRL  to
personally assist Dr.  Dixon in setting up the system and solving any
difficulties involved in integrating our manipulator system  into the
NRL facilities. We will plan on being at NRL at least one day and will
stay as long as is necessary to  demonstrate that our system fulfills
all aspects of  the contract.  Furthurmore, we will conduct a seminar
on the technical aspects of the hardware and software of our system.\.