Who determines the specific insurance coverage requirements for Remax franchisees?

X, LLC's buying power.

David L. Liniger and Gail A. Liniger each own an interest in EDR Travel, Inc., an approved supplier of travel agency services. To the best of our knowledge, none of our other officers own a material interest in any other approved supplier (not counting minimal interests possibly owned through mutual funds).

Insurance

You will be required to obtain and maintain, at your expense, such insurance coverage that RE/MAX Regional requires from time to time and to meet the other insurance related obligations in the Franchise Agreement. This insurance must include, at a minimum, the following types of coverage:

• 1. Comprehensive general liability insurance insuring against claims for bodily and personal injury, and death and property damage, caused by or occurring in conjunction with the operation of the Office or otherwise in conjunction with the conduct of business, in the face amount of not less than $2,000,000 per occurrence or claim and annual aggregate. Coverage must also include broad form contractual liability, broad form property damage, personal and advertising injury, premises liability and products liability. You will also be required to secure endorsements covering each of your Sales Associates under such comprehensive general liability insurance policy or, in the alternative, you will be required to ensure that each Sales Associate secures comprehensive general liability insurance on his or her own behalf in the face amount of not less than $2,000,000 per occurrence and annual aggregate.
• 1. Real estate errors and omissions professional liability insurance in the face amount of not less than $1,000,000 per occurrence or claim and annual aggregate, with a retroactive date that pre-dates

the commencement of professional services. You will also be required to secure endorsements covering each of your Sales Associates under such errors and omissions policy or, in the alternative, you will be required to ensure that each Sales Associate secures real estate errors and omissions professional liability insurance in the face amount of not less than $2,000,000 per claim and annual aggregate.

1. Automobile liability insurance covering each vehicle titled or leased in your name or the name of the Franchise or any of its Owners and used at any time for the business of the Franchise. Each such automobile liability insurance policy must be carried in at least the following limit: bodily injury and property damage combined single limits of $1,000,000. The policy must include any auto or owned, hired and non-owned automobile coverage.

In addition, you will be required to ensure that each Sales Associate in your Office obtains automobile liability insurance covering each vehicle used at any time by the Sales Associate for business purposes (the policy must also include any auto or owned, hired and non-owned automobile coverage) and use your best efforts to ensure that each such policy (i) names RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional (and their respective officers, directors, and employees) as additional insureds; (ii) provides coverage to RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional on a primary and noncontributory basis; (iii) contains a waiver by the insurance carrier of all subrogation rights against RE/MAX Holdings, Inc., REMAX, LLC and other parties covered by the insurance; (iv) provides the same amount of coverage as you are required to obtain as set forth above; and (v) contains a provision that RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional receive prior written notice of termination, expiration, cancellation or modification of such policy.

• 1. Workers compensation insurance in amounts prescribed by law. Employer's liability with a limit of $1,000,000 each accident, each occupational disease, and occupational disease aggregate.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–53)