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                         Rice University
          Computer and Information Technology Institute

                     ROYALTY AGREEMENT TERMS

                      (This file:  ROYALTY)
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At this writing (June, 1990), CITI has implemented its licensing
program only for software in the PD (public domain) and IU1
(internal-use, comparatively small license fee) categories.  No
royalties are paid for software in either category.

For IU2 and CM software distributions, costs incurred by SDC are
recovered before further revenue distribution is made.  Such costs
can include (but are not limited to):

    1. Normal distribution charges (as are charged in IU1 licenses).
       Usually a cost per distribution.

    2. Any legal fees associated with the specific software (e.g.
       determination of developer's rights and those of sponsoring
       agencies, infringement, etc).  Usually a single cost, unless
       ongoing problems arise.

    3. Any other expenses specific to the particular software not
       covered in 1 or 2 above.

Distribution of revenues after cost reimbursement (outlined above) will
be as follows:

    * 40% to the developer(s) - In the case of multiple developers, this 
          is assumed to be divided evenly, unless CITI is notified in 
          writing otherwise.

    * 40% to Rice University

    * 20% to CITI (SDC)

Distribution of revenues from software submitted by institutions other
than Rice University will be negotiated on an individual basis.