Is a Christies International Real Estate franchisee required to use any Proprietary Software that Christies International Real Estate designates?

ur required operational and brand standards. At all times, you must have a staff of trained employees and agents sufficient to operate the Business in compliance with our required standards and applicable law. It is your responsibility to ensure that your employees and agents have completed all training and obtained all required licenses, permits, or certifications required by applicable law, including necessary state real estate license(s).

5.10. Software and Computer Systems.

(a) You will use in the Business the computer system which shall function and have the capability to interact with us and the System in accordance with our then-current information technology requirements as specified in the Operations Manual from time to time (the "Computer System"). In addition, you shall use the web-based proprietary software programs or applications we or our affiliates developed or that is developed for us by a third party (the "Proprietary Software"), to which we retain all right, title, and interest. You must use any Proprietary Software that we designate. The Proprietary Software will remain the confidential property of us or our third-party supplier. You may be required to enter into our or a third-party supplier's standard form computer software access or license agreement in connection with your use of the Proprietary Software or other software we determine is necessary for the Business. You must pay us or our third-party suppliers the initial and ongoing then-current license fee(s) related to your use of any Proprietary Software or other required software. We reserve the right to assign our rights, title and interest in any Proprietary Software or any software license agreement to a third party we designate, or to replace the Proprietary Software. In such event, you may be required to enter into a separate computer software license agreement specified by us or the third-party supplier of the Proprietary Software. The computer hardware component of the Computer System must have adequate specifications and be capable of operating the Proprietary Software and any other software we require, including cloud-based software. We may require you to make certain updates and modifications to the Computer System. Currently, we do not maintain direct access to the Customer Data in the Computer System. However, in the future, if changes in the Computer System or the methods in which we interact with our Affiliates or promote the System and network of Affiliates and offices operating under the Marks requires implementation of different data collection or reporting, we reserve the right to have access to the Computer System and Customer Data. You must have at the Business, Internet access with a form of high-speed connection as we require. You will be required to use and, at our direction, pay for all future updates, supplements, and modifications to the Computer System.

• (b) Any computer hardware and software you use in your Business, including the Computer System, shall include and maintain appropriate data security controls, and must comply with our data security policies, which may be designated in our Operations Manual or otherwise by us from time to time, which include, but are not limited to, the following: (i) authentication mechanisms designed so that they cannot be bypassed to gain unauthorized access to systems, (ii) encryption;

Source: Item 23 — RECEIPT (FDD pages 54–177)