Lynnda Speer, Donor, et al. - Page 6

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          HSC.  John Pfeiffer was the programmer from Harris Data who was             
          assigned to work on this project.  Mr. Speer and Mr. Paxson                 
          assisted Mr. Pfeiffer by describing the logic and flow of                   
          information necessary for the business of HSC.  Mr. Pfeiffer used           
          this information to create and develop the Local Software in RPG            
          II computer language, which was to be run on Pioneer’s IBM System           
          34 computer.  Mr. Pfeiffer subsequently joined Pioneer as a full-           
          time employee on June 1, 1982, where his primary responsibilities           
          consisted of the continued development of the Local Software.               
          Although Pioneer billed HSC monthly for the programming and                 
          services in connection with the financial accounting software,              
          Pioneer did not bill HSC for the creation and development of the            
          Local Software.                                                             
               The initial Local Software programs consisted of the order             
          taking and inventory control programs, including functions to:              
          (1) Maintain open customer order files that were indexed by                 
          orders and customer telephone number; (2) maintain a detailed               
          perpetual inventory file, which included a description of the               
          merchandise, quantity available, item number, and warehouse                 
          location and activities; (3) maintain customer, or member, master           
          files, which included a customer’s name, address, member number,            
          special dates such as anniversary and birth dates, credit card              
          numbers, all pertinent credit information, and a complete history           
          of a customer’s purchasing activities; (4) maintain customer                
          service files; and (5) prepare management reports for the sales             




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