Sprint Corporation and Subsidiaries, f.k.a. United Telecommunications, Inc. - Page 13

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          base load module from a software library onto a blank magnetic              
          tape, pulling down other existing modules from the software                 
          library to meet design specifications, and manually installing              
          various “data information” and translation codes onto the tape.             
          Three copies of the software load were made, two being sent to              
          Sprint and one being retained solely for safety reasons by NTI.             
          NTI technicians then installed the custom software load on the              
          particular switch for which it was designed.  Once installed, the           
          custom software load was tested and validated by NTI technicians.           
          An invoice from NTI indicates that, on a particular switch, of              
          532 total hours to develop the software load, 500 hours were                
          spent writing the software blueprint and testing and validating             
          the installed software.  There was little or no time actually               
          spent writing new software for the digital switch, and there was            
          no evidence as to how many preexisting modules were used.                   
               Once the equipment became operational, software load updates           
          were periodically provided by the manufacturers.  If there was a            
          new feature to be added, it was done at the time of the periodic            
          update.  The time required to effect those modifications varied             
          between 100 and 160 man-hours.  If the hardware of the switch was           
          moved to a different geographic location, a new custom software             
          load would be prepared utilizing the same steps.                            
               Nature of Sprint's Possession of the Software                          
               The direct sales agreement between petitioner and NTI                  
          provided a warranty as to the software loads.  Provided that                




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