What is the company allowed to do according to the companys existing licensing solution for Office?

Company Background
Corporate Information
Lucerne Publishing produces magazines. The company has 225 employees.
Lucerne Publishing has affiliates in five countries in Europe.
Existing Environment
Existing Licensing Solution
Lucerne Publishing has a main office and multiple branch offices.
Licenses for all branch offices are purchased under an Open License agreement without Software Assurance. The agreement includes licenses for the following:
Microsoft Office Professional 2003
Windows XP Professional Upgrade
The Open License agreement has expired.
Business Requirements
Planned Changes
The company’s revenue is decreasing. To reduce operating costs, the company plans to reduce the number of employees and the number of desktops and portable computers. After the cost reductions, some former employees will work for the company as contractors. All contractors must purchase their own portable computers because they will not be working exclusively for Lucerne Publishing.
All employees will require a new third-party accounting application that requires Office Professional 2007.
The company plans to implement a collaboration solution for the contractors. This collaboration solution must not require a server.
Business Goals
Lucerne Publishing has the following business goals:
Upgrade Microsoft software to the latest version when available
Avoid external financinig for licenses and minimize initial licensing costs
Implement a collaboration solution for contractors only
Protect the data on portable computers owned by the company in case of theft
Choose a licensing solution that allows the company to reduce the number of licenses for computers
Prevent all contractors from accessing the company’s internal network.
Question
You are performing an initial assessment of the companys current environment. What is the company allowed to do according to the companys existing licensing solution for Office?