ndatory standards.

Equipment, Products and Signs

In operating your Business, you may only use approved or designated materials, supplies, equipment, furniture, tools, internal and external signage for the Main and Additional Offices, all "for sale" signs, inventory, supplies, forms, printed and electronic advertising materials, computer hardware and software that we have approved as meeting our specifications and standards for appearance, function, and performance ("Approved Items"). You may be required to purchase Approved Items from those suppliers we approve or designate. We may establish a list of suppliers and vendors pre-approved by us for certain inventory and supplies that you may use. You are under no obligation to use these pre-approved suppliers or vendors in the regular course of your business. However, in the event that we require certain fixtures, equipment, inventory, and/or supplies that you are unable to reasonably locate elsewhere, you must use the suppliers and vendors pre-approved by us. We or one of our affiliates may be a designated or an approved supplier of one or more Approved Items, but as of the issuance date of this Franchise Disclosure Document, neither we nor our affiliates are the sole supplier for Approved Items (except for the proprietary software and marketing materials described below). We reserve the right to name ourselves, our affiliates, or a third party as the sole, or one of, the approved suppliers for one or more Approved Items.

Computer Hardware and Software

We require that you obtain and use certain computer hardware and software to operate your Business in accordance with our then-current information technology requirements as specified in the Operations Manual from time to time. You are responsible for purchasing the required computers, as well as any costs related to any accessories, repairs, replacement or upgrades to the computer(s).

You must use any proprietary bundle of software and services in the operation of your Business that we designate. As of the issuance date of this Franchise Disclosure Document, we are the only approved supplier for the proprietary software.

In addition, in the future we may require that you use the communications technology program, Konverse, and pay their then-current fees.

Since technology, particularly in the real estate brokerage business is changing, we reserve the right to require businesses operating under the System and Marks, including your Business, to change technology systems, or implement new or changed technologies, and you would be required to pay the initial, conversion, and ongoing fees and costs associated with those changes, which payments may be to us or to third parties.

Insurance

Before beginning operations under the License Agreement, you must obtain, and maintain in full force and effect during the term of the License Agreement, those insurance policies we require, including but not limited to the following, insuring you and us against any liability that may accrue by reason of your operation of the Business:

• 1. Comprehensive General Liability Insurance, including broad form contractual liability, broad form property damage, personal injury, completed operations, fire damage, advertising and products liability coverage, in the amount of $1,000,000 per occurrence for bodily injury and property damage.
• 1. Workers' Compensation and Employers Liability insurance in the minimum amount of $500,000 for bodily injury per accident, $500,000 for bodily disease per employee, $500,000 bodily disease policy limit, or such other amounts as may be prescribed by the state or locality in which the Business is located, unless your state requires that employers must participate in a state-administered insurance pool (in which case you must adopt and implement a qualifying plan).

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)