perm filename OFFER.VL[1,VDS]2 blob sn#212365
filedate 1976-04-21 generic text, type C, neo UTF8
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C00002 00002 \|\\M1BDR25\M2SIGN57\M3NGR25\M4NGR20\F2\CVICARM
\F3\C154 EAST DANA STREET
\CMOUNTAIN VIEW, CA. 94041
\F1\CApril 1, 1976
Mr. J. Engleberger
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, Bill 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 under the name of Vicarm, or 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 producing manipulators. 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
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 am still seriously interested in completing this PhD 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, and general purpose shop stock
material. Our current order backlog is about $40,000 worth, with a
new $40,000 order expected in the next few weeks. To fulfill our
current orders, mowt of the investment in component parts and outside
labor has been 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 the M.I.T. Arm, and their accessories.
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 $8k. 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 the 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 10% per
year cost of living increase.(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 June 15).\.