Can Creative World School be required to use specific computer hardware and software?

• 11.06 Accounting, Computers and Records. It is your responsibility to obtain accounting services and any required hardware or software related to them. You will at all times maintain the records reasonably specified in the Manuals, including, without limitation, sales, inventory and expense information. To the extent we require support for accounting software used by you, such support will only be provided with respect to the accounting software then used by us in the operation of our own (or our affiliates' own) Schools. You agree as follows:
  • (a) You agree to use in developing and operating the School the operating software (the "Software") and the computer and hardware components and accessories (the "Computer System") that we may periodically specify. We may determine that the Computer System may include purchase accounting and reporting equipment including point of sale equipment, with features including:
    • (i) a highly sensitive keyboard for fast input;
    • (ii) controlled access to management functions such as child/teacher ratios;
    • (iii) educational software and hardware;
    • (iv) internal communications among computer terminals;
    • (v) check printer to document and detail all sales transactions;
    • (vi) capability to provide telecommunications to us in the manner we designate;
    • (vii)security key and password identification for each employee allowing the pointof-sale system to provide detailed sales information for each employee;
    • (viii) detailed sales tracking ability including, check-in and out, hours, attended department sales, customer accounts, sales for the individual employee and accounting period to date sales information; and
    • (ix) communication and polling ability for all sales information to be retrieved by you or us.
  • (b) We may require you to obtain specified computer hardware or software and may modify specifications for and components of the Computer System from time to time. Our modifications and specifications for components of the Computer System may require you to incur costs to purchase, lease or license new or modified computer hardware or software and to obtain service and support for the Computer System during the Term.
  • (c) If required by us, you must obtain and maintain a contract with a vendor that we have approved in writing for software maintenance, support, and upgrade services for

your Computer System and to provide you with such assistance as you may require. You acknowledge that we may be one of, or the only, approved vendor for such services, and if you obtain these services from us, then you agree that you will pay to us the maintenance fee and help desk fee specified by us for such services. Notwithstanding these rights of ours, we will not at any time be obligated to provide any such services or support for the hardware or software used in the Computer System.

• (d) You agree to incur such costs in connection with obtaining the computer hardware and software comprising the Computer System (or additions or modifications), as long as the Computer System we specify for use is the same Computer System that we or our affiliates then currently use in Schools that we or they own and operate.

Within 60 days after you receive notice from us, you agree to obtain the components of the Computer System that we designate and require.

We have the right to charge you fees for any computer usage costs that we incur as a result of your use of the Computer System or for any software that we license to you.

The Computer System must be capable of connecting with our Computer System so that we can daily review the results of your School's operations.

We also have the right to charge you a reasonable systems fee for modifications of and enhancements made to any proprietary software that we license to you and other maintenance and support services that we or our affiliates furnish to you related to the Computer System.

• (e) You must have the sole and complete responsibility for the manner in which your Computer System interfaces with other systems, including ours and other third parties, as well as any and all consequences that may arise if your Computer System is not properly operated, maintained, and upgraded.

• (f) You must: (a) promptly enter, into your Computer System, and maintain all information required to be entered and maintained by us; (b) provide to us such reports as we may reasonably request from the data so collected and maintained; and (c) permit us to access your Computer System at all times via modem or other means specified by us from time to time.

You must cooperate with us, and must execute all documents required by us to permit access to your Computer System and data contained therein.

Source: Item 23 — RECEIPTS (FDD pages 80–247)