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Term

The franchise starts the day franchisees sign their franchise agreement (subject to all necessary licenses and permits). It continues for 10 years or the term of the master lease, whichever is shorter, and as long as Garb-Ko's area license agreement is in effect and will continue if 7-Eleven, Inc. (Previously known as Southland) succeeds to Garb-Ko's rights. The franchise may be renewed only by mutual agreement.

Termination Provisions
Franchisees may terminate at any time for any reason after giving 30 days prior notice and by mutual agreement. 7-Eleven may terminate only for specified causes after at least 30 days prior notice (or longer notice as required by law), or after at least 24 hours prior notice (or longer notice as required by law) if franchisees:

• Have a net worth less than $10,000.00, or pursuant to the franchise agreement.
• Fail to timely deposit sales receipts* to 7-Eleven.
• File (or are filed against) a petition for bankruptcy.
• Attempt to transfer franchise contrary to franchise agreement.
• Vacate or abandon the store
• Fail to allow 7-Eleven to perform a physical audit.
• Are convicted of a felony.
• Receive a second alcoholic beverage law violation within a two year period.
• Fail to properly maintain leased premises.
• Fail to properly maintain required licenses.

*Franchisees shall have the right to cure except if franchisees have previously received notice of termination.

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