What are the insurance requirements for a Browns Chicken franchise?

trictions of this Section 15 shall not be applicable to the ownership of shares of a class of securities listed on a stock exchange or traded on the over-the- counter market that represent one percent (1%) or less of the number of shares of that class of securities issued and outstanding.

16. INSURANCE.

During the term of the Franchise, Franchisee shall maintain in force, under policies of insurance issued by carriers approved by Brown: (1) comprehensive public and product liability insurance and motor vehicle liability insurance (including but not limited to hired and non-owned coverage) against claims brought during or after the term of the Franchise for bodily and personal injury, death and property damage caused by or occurring in conjunction with the operation of the Store or otherwise in conjunction with the conduct of business by Franchisee pursuant to the Franchise, under one or more policies of insurance containing minimum liability protection of One Million Dollars ($1,000,000) combined single limit; (2) general casualty insurance, including fire and extended coverage, vandalism and malicious mischief insurance and plate glass and general theft insurance, for the replacement value of the Store and its contents; (3) Employment Practices Liability of no less than $500,000, (4) workmen's compensation insurance as required by law; and (5) business interruption insurance for a period adequate to re-establish normal business operations. Brown may from time to time increase the minimum limits of coverage required under such insurance policies and require different or

additional kinds of insurance, including excess liability insurance, to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. Each insurance policy shall name Brown as an additional insured on a primary basis, and shall provide for ten (10) days prior written notice to Brown of any material modification, cancellation or expiration of such policy.

Prior to the expiration of the term of each insurance policy, Franchisee shall furnish Brown with a certificate of insurance evidencing the continuation of coverage under a similar policy for an immediately following term, and upon Brown's request, a copy of each such policy. If Franchisee fails or refuses to maintain required insurance coverage or to furnish satisfactory evidence thereof and the payment of the premiums therefor, Brown, at its option and in addition to its other rights and remedies hereunder, may obtain such insurance coverage on behalf of Franchisee and Franchisee shall fully cooperate with Brown in its effort to obtain such insurance policies, promptly execute all forms or instruments required to obtain or maintain any such insurance, allow any inspections of the Store which are required to obtain or maintain such insurance and pay to Brown, on demand, any costs and premiums incurred by Brown. In the event Brown obtains Franchisee's insurance pursuant to this paragraph, Brown may withdraw the monthly costs of insurance, plus an additional ten percent (10%) administration fee, from Franchisee's bank account, through Franchisee's Bank Draft Plan established pursuant to Paragraph 19.F.

Franchisee's obligations to maintain insurance coverage as herein described shall not be affected in any manner by reason of any separate insurance maintained by Brown, nor shall the maintenance of such insurance relieve Franchisee of any obligations under Section 24 of this Agreement.

17. MARKS.

**A.

Source: Item 22 — Contracts (FDD page 43)