Nicholas E. Eustace, et al. - Page 8




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          Systems regularly updated each program to reflect rating formula            
          modifications each carrier made at least once a year.                       
               D.  Other Projects                                                     
               During the years in issue, Applied Systems also worked on              
          data conversion, Independence, WinTAM, Diamond, and                         
          evaluations/R&D.                                                            
                    1.  Data Conversion                                               
               From 1990 through 1992, Applied Systems offered an                     
          electronic data conversion service to agencies switching from               
          another automation system to the TAM module.  This service                  
          allowed agencies to use the data from their old systems without             
          manually reentering the data into the TAM module.  In a typical             
          data conversion, Applied Systems would take the data off the old            
          system, put it on a PC, create a program to transfer the data to            
          data base files needed for the TAM module, and run the program to           
          transfer the data.  In an average week, Applied Systems was                 
          converting, in 1990, four systems; in 1991, seven systems; and in           
          1992, nine systems.                                                         
                    2.  Independence                                                  
               In 1991, Applied Systems purchased Liberty and Leader                  
          Systems (i.e., automation vendors that were subsidiaries of                 
          carriers) and began the Independence project to integrate the               
          software of these systems with FIM.  As a result of the                     
          acquisition, Applied Systems added to its user base the customers           






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