7 Eleven

9/8/2016
StandardFormof7ElevenIndividualStoreFranchiseAgreement
EX10.(II)(B)(1)2dex10iib1.htmSTANDARDFORMOF7ELEVENINDIVIDUALSTOREFRANCHISEAGREEMENT
Exhibit10.(ii)(B)(1)
7ELEVEN,INC.INDIVIDUAL
STOREFRANCHISEAGREEMENT
https://www.sec.gov/Archives/edgar/data/92344/000119312505052213/dex10iib1.htm
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TABLEOFCONTENTS
1.
StatementofIntentandDefinitions
(a)StatementofIntent
(b)Headings
(c)Definitions
2.
IndependentContractor
3.
FranchiseFeeandDownPayment
4.
TrainingOnLineSystemsSupportGuide
(a)InitialTraining
(b)OngoingTraining
(c)EmployeeTraining
(d)OnLineSystemsSupportGuide
5.
Ownershipof7ElevenSystemConfidentialityNoncompetition
(a)Ownershipof7ElevenSystem
(b)Confidentiality
(c)NewDevelopments
(d)Noncompetition
6.
EffectiveDate
(a)CommencementofObligations
(b)ConditionstoOccurrenceofEffectiveDate
(c)FailuretoMeetConditionsforEffectiveDatetoOccur
7.
License
(a)GrantofLicense
(b)ReservedRights
8.
Lease
(a)LeaseofStoreand7ElevenEquipmentUseof7ElevenEquipment
(b)ThirdPartyBeneficiary
(c)DisclaimerofWarranties
(d)CondemnationAwards
(e)BreachofLease
Term
9.
10. 7ElevenCharge
(a)7ElevenCharge
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(b)Adjustmentto7ElevenChargeforFailuretoMeetRecommendedVendorPurchaseRequirement
(c)Adjustmentto7ElevenChargeuponDeclarationofInvalidityofCertainProvisions
11. YourDraws
12. BookkeepingandFinancialMatters
(a)BookkeepingInspectionofRecords
(b)DepositsCashPaymentsforDailyPurchases/OperatingExpenses
(c)ReportsandOtherBookkeepingInformation
10
(d)ElectronicInvoices
(e)FinancialSummariesandAssistancethatWeProvideYou
10
(f)7ElevenStoreInformationSystem.
10
13. OpenAccountFinancingandMinimumNetWorth.
10
(a)OpenAccount
10
(b)Financing
11
(c)Interest
11
(d)MinimumNetWorth
11
14. AuditRights
11
15. MerchandisingandInventoryRecommendedVendors
12
(a)InitialInventory
12
(b)OngoingInventoryandCategories
12
(c)ProprietaryProducts
12
(d)ProductPackagingandDisplay
12
(e)Nationally/RegionallyPromotedProductsandExclusiveProducts
12
(f)SuggestedRetailSellingPrices
13
(g)VendorRequirements
13
(h)RecommendedVendorProcedure
13
(i)DesignatedServiceVendors
13
(j)OurVendorNegotiatingPracticesandTreatmentofDiscountsandAllowances
13
(k)ReviewofVendorNegotiatingPracticesandTreatmentofDiscountsandAllowances
14
16. 7ElevenFoodserviceStandards
15
(a)Compliancewith7ElevenFoodserviceStandards
15
(b)7ElevenFoodserviceStandardsRelatedtoFreshFoods
15
(c)FoodserviceCertificationStandards
15
(d)QualityInspections
15
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(e)FailuretoComplywith7ElevenFoodserviceStandards
15
17. OurIndemnification
16
18. YourIndemnificationInsurance
16
19. YourAdditionalCovenants
16
20. MaintenanceandUtilities
17
(a)YourMaintenanceObligations
17
(b)MaintenanceContracts
17
(c)YourFailuretoMaintaintheStore
18
(d)MaintenancePerformedByorThroughUs
18
(e)Utilities
18
21. Taxes
18
22. Advertising
18
(a)AdvertisingFee
18
(b)LocalAdvertising/AdvertisingApproval
20
(c)InternetPromotion
20
(d)FoodservicePromotion
20
23. ServiceMarkandRelatedTrademarks
20
(a)RighttoUsetheMarks
20
(b)AgreementsRegardingtheMarks
20
(c)UseoftheMarks
21
(d)CertainProhibitedConduct
21
(e)InfringementandDilution
22
(f)DomainNamesUseofInternet
22
24. RenewalofFranchise
22
25. Assignment
23
(a)AssignmentbyUs
23
(b)AssignmentbyYou
23
(c)OurRightofFirstRefusal
24
26. Termination
24
(a)TerminationbyUs
24
(b)CuringBreachesMultipleDefaults
27
(c)TerminationonDeathorIncapacitation
28
(d)MarketWithdrawal
28
(e)TransferandRefundRights
28
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(f)OurRighttoAssumeOperationoftheStore
30
27. MutualTerminationTerminationbyYou
30
(a)MutualTermination
30
(b)TerminationbyYou
30
28. CloseOutProcedure
31
(a)PostExpiration/TerminationObligations
31
(b)SettlementofOpenAccount
31
(c)PaymentofIndebtednesstoUsDeliveryofFinalFinancialSummaries
32
29. Mediation
32
30. GoverningLawJurisdiction
33
(a)GoverningLaw
33
(b)Jurisdiction
33
31. MiscellaneousProvisions
33
(a)Nonwaiver
33
(b)Disclosure
33
(c)CircumstancesBeyondaPartysControl
34
(d)Notices
34
(e)Severability
34
(f)PersonalQualification
35
(g)CompleteAgreement
35
(h)Consents
35
(i)Interpretation
35
(j)WaiverofDamages
35
(k)ConsultationwithAdvisors
36
(l)SavingsClause
36
EXHIBITS:
A
B
C
D
E
F
G
H
I
J
Store
7ElevenEquipment
7ElevenContractualIndemnification
SelectedProvisions
Definitions
Survivorship
RequiredProprietaryProducts
ReleaseofClaimsandTermination
SecurityAgreement
ProceduresforSelectionofThirdPartyReviewerandforReviewingVendorNegotiatingPractices
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STOREFRANCHISEAGREEMENT
InconsiderationofthemutualpromisesandagreementscontainedinthisAgreement,thereceiptandsufficiencyofwhichareacknowledged,the
partiesagreeasfollows:
1.StatementofIntentandDefinitions.
(a)StatementofIntent.
(1)Franchisingisamethodofdistributinggoodsorservicesinaconsistentmanner.Thecustomerexpectsasimilarshoppingexperienceata
franchisedbusiness,regardlessofitslocationoroperator.BysigningthisAgreement,youacknowledgetheimportanceoftheseconcepts,andagreeto
participateinthe7ElevenSystem,whichpromotesauniformmethodofoperatingaconveniencestore.Yourecognizethatauniformpresentationofa
highquality7ElevenImageiscriticaltothecustomersperceptionofthe7ElevenSystem,andthatyouagreetocontributetothatperceptionby
operatingyourStoreincompliancewiththisAgreementandthe7ElevenSystem.
(2)Yourecognizethebenefitstoyouandthe7ElevenSystem(includingthebenefitsofscalethatalargechaingetsfromitshighvolumeof
purchases)ofpurchasingtheproductsandservicessoldatyourStorefromcommonvendorsand/ordistributors.Youagree:(a)tooperateyourStoreina
waythatrecognizestherightandresponsibilityoftheretailertoprovidevalueto7Elevencustomersand(b)toordertheproductsandservices7Eleven
customerswant,introducenewproducts,managefrequentdeliveries,discontinueofferingslowsellingitems,andprovideexcellentcustomerservice.
(3)Youagreethatthe7ElevenSystemissubjecttomodificationbasedonchangesintechnology,competitivecircumstances,customer
expectations,andothermarketvariables.Thosechangestothe7ElevenSystemmayincludechangesinoperatingstandards,products,programs,services,
methods,forms,policiesandprocedureschangesinthedesignandappearanceofthebuilding,signageandequipmentandchangestotheServiceMark
andRelatedTrademarks.
(4)Weagreetoassistyoubyprovidingarecognizedbrand,merchandisingadviceandoperationalsystemsdesignedtomeettheneedsof7
Elevencustomers.Wealsoagreetocontributetothevalueofthe7ElevenServiceMarkandbrandbyfulfillingthosedutiesandtasksassignedtousinthis
Agreementasourresponsibilitywithinthe7ElevenSystem.
(5)Yourecognizetheadvantagesofthe7ElevenSystemandwishtoobtainafranchisefora7ElevenStore.Youunderstandthatan
investmentintheStoreinvolvesbusinessrisksandthatyourbusinessabilitiesandeffortsarevitaltothesuccessoftheStore.Youagreethatthetermsof
thisAgreementareacceptabletoyou,andarematerialandreasonable.
(b)Headings.ThecaptionsusedintheparagraphsandsubparagraphsofthisAgreementareinsertedonlyforpurposeofreference.Thesecaptions
willnotgovern,limit,modifyorinanyothermanneraffectthescope,meaningorintentoftheprovisionsofthisAgreementoranypartthereof,norwill
theyotherwisebegivenanylegaleffect.
(c)Definitions.We,us,ouror7Elevenmeans7Eleven,Inc.,thefranchisor.YouoryourmeanstheFranchisee,asdefinedmorefullyin
ExhibitE.InitiallycapitalizedtermsusedinthisAgreementaredefinedinExhibitEorinoneoftheotherExhibitstothisAgreement.
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2.IndependentContractor.YouandweagreethatthisAgreementcreatesanarmslengthbusinessrelationshipanddoesnotcreateanyfiduciary,
specialorothersimilarrelationship.Youagree:(a)toholdyourselfouttothepublicasanindependentcontractor(b)tocontrolthemannerandmeansof
theoperationoftheStoreand(c)toexercisecompletecontroloverandresponsibilityforalllaborrelationsandtheconductofyouragentsandemployees,
includingthedaytodayoperationsoftheStoreandallStoreemployees.Youandyouragentsandemployeesmaynot:(i)beconsideredorheldouttobe
ouragentsoremployeesor(ii)negotiateorenteranyagreementorincuranyliabilityinourname,onourbehalf,orpurportingtobindusoranyofouror
yoursuccessorsininterest.Withoutinanywaylimitingtheprecedingstatements,wedonotexerciseanydiscretionorcontroloveryouremployment
policiesoremploymentdecisions.AllemployeesoftheStorearesolelyyouremployeesandyouwillcontrolthemannerandmeansoftheoperationofthe
Store.Noactionsyou,youragentsoremployeestakewillbeattributabletousorbeconsideredtobeactionsobligatingus.
3.FranchiseFeeandDownPayment.YouagreetopayustheFranchiseFeeandtheDownPaymentstatedinExhibitDupontheexecutionofthis
Agreement.ExceptasprovidedinParagraphs4and6withrespecttotheDownPaymentandParagraphs4,6,26,and27withrespecttotheFranchiseFee,
theDownPaymentandtheFranchiseFeewillbedeemedfullyearnedandnonrefundablewhenpaidinconsiderationoftheadministrativeandother
expenseswehaveincurredingrantingthefranchise.
4.TrainingOnLineSystemsSupportGuide.
(a)InitialTraining.PriortotheEffectiveDate,youagreetobecertifiedbyusashavingsatisfactorilycompletedtheinitialtrainingprogramfor
operatingafranchised7ElevenStore.Youbecomecertifiedinthefollowingmanner.Ifyouareone(1)individual,thenyouwillbethetrainee,andyou
maydesignateuptoone(1)additionalindividualthatweapprovetobeanadditionaltrainee.Ifyouaretwo(2)individuals,thenthosetwo(2)individuals
willbethetrainees.Ifyoubecomecertified,youagreetopayforallexpensesrelatedtoinitialtraining,excludinglodgingcosts(ifwerequireyoutotravel
forinitialtrainingandlodgingisnecessary),ifany,andourcostsofprovidingtheinitialtraining.Ifanyofyourtraineesfailtobecomecertifiedbyusas
havingsatisfactorilycompletedtheinitialtrainingprogram,youagreetoberesponsibleforallexpensesrelatedtotheinitialtraining,includinglodging,
butexcludingourcostsofprovidingtheinitialtraining.AtanytimebeforetheEffectiveDate,ifanyofyourtraineesdonotshowanunderstandingofthe
training,arenotsatisfactorytousinanyrespect,orareotherwisenotprogressingintheinitialtrainingprograminamannersatisfactorytous,wemaystop
providinginitialtrainingtosuchtrainee(s)orrefusetocertify,orrevokethecertificationof,anysuchtrainee(s).Ifwediscontinueinitialtraining,donot
certify,orrevokethecertificationofanytrainee,then:(a)thebusinessrelationship,ifany,betweenyouanduswillimmediatelyterminate(b)this
Agreementwillnotbecomeeffectiveandwillbenullandvoidand(c)weagreetorefundtheDownPaymentandtheFranchiseFeetoyou,without
interest,afterdeductinganyamountyouoweus,includinganyinitialtrainingexpensesforwhichwehavereimbursedyouorwhichwehavepaidonyour
behalf.Ifyouincuranyexpensesinattemptingtoobtaina7ElevenStorefranchiseorifyourelyinanyotherwayonobtainingafranchisefromus
(includingincurringoutofpocketexpensesotherthanthoseforwhichwemayreimburseyouunderthisParagraph4),thenyouagreethatyouwillhave
donesosolelyatyourownrisk,basedonyourownjudgmentandnotinrelianceuponanystatementsorrepresentationsfromusorouragentsor
representatives.
(b)OngoingTraining.Weagreetoofferadditionaltrainingthatwedeemnecessarybasedonchangesinthe7ElevenSystem.Wewilltestany
majorsystemchangesinourCompanyoperatedStoresand/orinfranchisedstoreswherefranchiseesvolunteertobeapartofthetestbeforemakingsuch
majorchangestothe7ElevenSystem.Youagreetoberesponsibleforallexpenses,includingthecostsoftravel,lodging,mealsandwages,incurredby
yourtraineesandotherpersonnelinconnectionwithanyadditionaltrainingprogram.
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(c)EmployeeTraining.YouagreetoatalltimeskeepyourStoreemployeesadequatelytrainedintheoperationofthe7ElevenStoresothat
youremployeescanprovidesuperiorcustomerserviceandproperlycarryouttheoperationsoftheStoreinaccordancewiththe7ElevenSystemandthis
Agreement.
(d)OnLineSystemsSupportGuide.AslongasyouarenotinMaterialBreachofthisAgreement,weagreetoprovideyouwithaccesstoour
OnLineSystemsSupportGuideonthe7ElevenIntranetthroughyourinStorecomputer.TheOnLineSystemsSupportGuideprovidesinformation
regarding,amongotherthings,trainingandStoreoperationsandaccountingprocedures.Wemayprovideassistanceandinformationtoyouthrough
methodsotherthantheOnLineSystemsSupportGuide.TheOnLineSystemsSupportGuidedoesnotcreateanyadditionalobligationsonyounot
otherwiseprovidedforinthisAgreement(includinganyamendmenttothisAgreement).
5.Ownershipof7ElevenSystemConfidentialityNoncompetition.
(a)Ownershipof7ElevenSystem.Youacknowledgethatweareandwillremainthesoleownerofallrightsinandtothe7ElevenSystem,the
OnLineSystemsSupportGuide,anyinformation,manuals,materials,andanyotherconfidentialcommunications(whetherinelectronicorotherform)
providedtoyouconcerningtheoperationofa7ElevenStoreorrelatedtothe7ElevenSystem,andthatyouareacquiringnopropertyinterestinorother
righttothem,otherthanalicensetousethemduringtheTermofthisAgreement.YouagreetoatalltimestreattheOnLineSystemsSupportGuideand
anyothermanuals,materials,confidentialcommunications,andtheinformationcontainedtherein,asconfidentialandmustmaintainsuchinformationas
secretandconfidentialinaccordancewithParagraph5(b).
(b)Confidentiality.DuringtheTermofthisAgreementandthereafter,youagree:(i)nottocommunicate,divulgeorusetheConfidential
Informationforthebenefitofanyotherpersonorentityand,followingtheexpiration,termination,ortransferofthisAgreement(ii)nottousethe
ConfidentialInformationforyourownbenefit(iii)todivulgesuchConfidentialInformationonlytothoseofyouremployeeswhomusthaveaccesstoitin
ordertooperatetheStore.Exceptaswemayexpresslypermitinwriting,youagreenottoatanytimedownload,print,transmitviaemailoranyother
means,copy,duplicate,record,orotherwisereproducetheConfidentialInformation,inwholeorinpart,orotherwisemaketheConfidentialInformation
availabletoanyunauthorizedperson.TheagreementinthisParagraph5(b)willsurvivetheexpiration,terminationortransferofthisAgreementorany
interesthereinandwillbeperpetuallybindinguponyou.Atourrequest,youagreetoobtainexecutionofagreementssimilartothosesetforthinthis
Paragraph5(b)fromyouremployees,agents,independentcontractors,andanyotherofyourpersonnelwhohavereceivedorwillhaveaccesstothe
ConfidentialInformation.Suchagreementsmustbeintheformthatwerequire.
(c)NewDevelopments.Ifyouoryouremployeesdevelopanynewconcept,processorimprovementintheoperationorpromotionoftheStore,
youagreetopromptlynotifyusandprovideuswithallnecessaryrelatedinformation,withoutcompensation.Youherebygranttousaperpetualroyalty
freelicensetouseandsublicensetheuseofanysuchconcept,processorimprovementinanywaywechoose.
(d)Noncompetition.
(1)PostTermNoncompete.Exceptasotherwisepermittedbyusinwriting,foracontinuousuninterruptedperiodcommencingonthe
expiration,termination,ortransferofallofyourinterestinthisAgreementandcontinuingforone(1)yearthereafter,youagreenotto,foryourself,or
through,onbehalfoforinconjunctionwithanyotherperson,partnership,corporation,
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limitedliabilitycompanyorotherentityorassociation,maintain,operate,engagein,orhaveanyfinancialorbeneficialinterestin,advise,assist,make
loansto,orleaseto,aCompetitiveBusinesswhichis,orisintendedtobe,locatedatthesiteoftheStoreoratthesiteofanyformer7ElevenStorewithin
two(2)yearsofitlastbeingoperatedasa7ElevenStore.
(2)NothinginthisParagraph5(d)willpreventyoufromowning,forinvestmentpurposesonly,anownershipinterestinabusiness
entityasapassiveinvestorwithoutanyinvolvementintheoperationsofsuchbusinessentity.
(3)Youandweagreethattheforegoingagreementcontainsreasonablelimitationsastotime,geographicalareaandscopeofactivity
toberestrainedanddoesnotimposeagreaterrestraintthanisnecessarytoprotectourgoodwillorotherbusinessinterests.Suchagreementwillbe
construedasindependentofanyotheragreementorprovisionofthisAgreement.IfalloranyportionofanagreementinthisParagraph5(d)isheld
unreasonableorunenforceablebyacourthavingvalidjurisdictioninanunappealedfinaldecisiontowhichweareaparty,youagreetobeboundbyany
lesseragreementimposedbyorresultingfromthecourtorderasiftheresultingagreementwereseparatelystatedinandmadeapartofthisParagraph5(d).
(4)Youacknowledgethatwewillhavetheright,inoursolediscretion,toreducethescopeofanyagreementinthisParagraph5(d)
withoutyourconsent,effectiveimmediatelyuponnoticetoyou,andyouagreetopromptlycomplywithanyagreementassomodified.
(5)Youagreethattheexistenceofanyclaimsyoumayhaveagainstus,whetherarisingunderthisAgreementorotherwise,willnot
constituteadefensetotheenforcementbyusofthisParagraph5(d).
(6)YouacknowledgethatanybreachofanyofthetermsofthecovenantcontainedinParagraph5(d)willresultinirreparableinjuryto
usandthatweareentitledtoinjunctiverelieftopreventanysuchbreach.
6.EffectiveDate.
(a)CommencementofObligations.Yourandourrightsandobligationsderivedfromthegrantofthefranchiseandtherighttobecomepartof
the7Elevensystemoffranchisees(includingthosesetforthinParagraphs7(a),8,10,11,12,14,and17)willbeginasoftheEffectiveDate.Allofyourand
ourotherrightsandobligations(including,withoutlimitation,thoseinParagraphs4,5,6,7(b),18,19,25,26,27,and28)willbecomeeffectiveasofthe
datethatthelastpartyexecutesthisAgreement.
(b)ConditionstoOccurrenceofEffectiveDate.WeagreetouseourbesteffortstomaketheStoreavailabletoyouwithinareasonabletime.
However,youagreethat,inorderfortheEffectiveDatetooccur,allofthefollowingconditionsmustbemettooursolesatisfactiononorbeforethedate
theStorebecomesavailable:(1)youandanyofyourtraineesmustbecertifiedbyusashavingsatisfactorilycompletedtheinitialtrainingprogram(2)you
willhavepaidusallamountsthatyouowetousunderthisAgreement(3)alllicenses,permits,andbondsrequiredbyapplicablelawsorregulationsorby
usfortheoperationoftheStore(oranyportionoftheStore)mustbeavailableand,wherepossible,obtained(4)youwillnothavegrantedasecurity
interestintheCollateralorthefranchisetoanyoneexceptusorourAffiliate(5)youwillnothavemadeanymisrepresentationtousinconnectionwith
obtainingthe7ElevenStorefranchiseand(6)youwillnothavetakenanyactionthatwouldbe,oris,abreachofthisAgreement.
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(c)FailuretoMeetConditionsforEffectiveDatetoOccur.If(1)youfailtomeetanyoftheconditionscontainedinParagraph6(b)(2)the
Storeisnotavailablewithinninety(90)daysafteryousatisfactorilycompleteinitialtrainingor(3)theEffectiveDatedoesnotoccurwithinonehundred
twenty(120)daysafterthedateyouandwesignedthisAgreement(or,iftheStoreisunderconstruction,withinthirty(30)daysafterthecompletiondate,if
suchdateislaterthanonehundredtwenty(120)daysafteryouandwesignedthisAgreement),then,exceptforyourpostterminationobligationsand
Paragraph5,thisAgreementwillnotbecomeeffectiveandwillbenullandvoidandofnofurtherforceoreffect,unlessyouandweagreeinwriting
otherwise.IfthisAgreementdoesnotbecomeeffectiveasprovidedinthisParagraph6(c)throughnofaultofyours,thenweagreetorefundtheDown
PaymentandtheFranchiseFeetoyou,withoutinterest,minusanyamountyouoweusasprovidedinthisAgreement.
7.License.
(a)GrantofLicense.AsoftheEffectiveDate,wegranttoyou,uponthetermsandconditionsinthisAgreement,therightandlicense,andyou
accepttherightandobligation,tooperatea7ElevenStoreattheStorelocationidentifiedinExhibitAinaccordancewiththisAgreementunderthe
ServiceMark,RelatedTrademarks,andthe7ElevenSystemandtousetheTradeSecretsandtheProprietaryProductsinconnectionwiththeoperationof
theStore.
(b)ReservedRights.YouagreethatthisAgreementdoesnotgrantyouanyexclusiveorprotectedterritory.Youfurtheracknowledgethatwe
arenotobligatedtograntanyadditionalfranchisestoyou.ThisAgreementdoesnotgrantyoutherightorlicensetooperatetheStoreortoofferorsellany
productsorservicesofferedandsoldby7ElevenStoresatorfromanylocationotherthantheStorelocationidentifiedinExhibitAorthroughanyother
channelormethodofdistributionotherthana7ElevenStore,includingbyorthroughtheInternetorsimilarelectronicmedia.Youagreethatweandour
Affiliatesretainallotherrights,includingtherighttoestablishandoperate,andtograntotherstherighttoestablishandoperate,convenienceorother
storesundertheServiceMarkandRelatedTrademarks,anytradenames,andotherservicemarksandtrademarks,atanysiteotherthantheStorelocation,
includingsitesthatareadjacentorproximatetotheStorelocation.WeandourAffiliatesalsoretaintherighttoofferandsell,andgrantotherstherightto
offerandsell,anyproductsandservicessimilarordissimilartothoseofferedby7ElevenStores,whetheridentifiedbytheServiceMark,Related
Trademarksorbyothertrademarks,tradenamesorservicemarks,throughanyotherchannelorbyanyothermethodofdistribution,includingbyor
throughtheInternetorsimilarelectronicmedia,onanytermsandconditionswedeemappropriate.Ifwedecidetosubcontracttoyou(andyouagreeto
accept)certainofourobligationsinconnectionwiththesaleofproductsand/orservicesovertheInternet,wewillcompensateyouforyoureffortstofulfill
thoseobligationsinareasonableamounttobemutuallyagreeduponbyyouandus.
8.Lease.
(a)LeaseofStoreand7ElevenEquipmentUseof7ElevenEquipment.
(1)BeginningontheEffectiveDate,weleasetheStoreand7ElevenEquipmenttoyousolelyfortheoperationofafranchised7
ElevenStorepursuanttothisAgreementandinaccordancewiththe7ElevenSystem.Youagreetocomplywithalllocal,stateandfederallaws,statutes,
regulations,ordinances,andrulesofanyapplicablegovernmentalentitywithrespecttotheoperation,use,repairandpossessionoftheStoreandthe7
ElevenEquipment.
(2)IfwecurrentlyowntheStore,wemayselltheStoreandleaseitbackorenterintoothersimilartransactionsinconnectionwitha
financingoftheStoreortheimprovements.IfwecurrentlyleasetheStore,thentheLeasetoyouisasubleaseandcertainprovisionsofthemasterlease
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areincludedonExhibitA.IfwearenotcurrentlyleasingtheStorebutweleaseitinthefuture,theLeasetoyouwillbeasublease,andwewillamend
ExhibitAtosummarizecertainprovisionsofthemasterlease.YouagreetocomplywithalltermsandprovisionsofthemasterleasereferredtoinExhibitA
andnotcauseabreachofanysuchmasterlease.WereservefromtheLeaseand/orcommonareasuchportionsthereof,ifany,aswemayelecttousefor:the
installationofbankingorothersimilarequipment,attendedorselfservicegasoline,attendedorselfservicecarwashes,aphotokiosk,signsorbillboards,
ortelecommunicationstowersandothertelecommunicationsequipmentofanytype,andanyadditionalareasthatweconsidernecessaryforthe
installation,maintenance,repair,andoperationofrelatedequipment.Youagreetogiveusunobstructednonexclusiverightstoenterandexitin
connectionwiththesereservedrights.UnlessotherwiseprovidedinaseparateagreementbetweenyouandusorourAffiliateoranamendmenttothis
Agreement,wewillcredittoyourOpenAccountanamountequaltotherentalsandsimilarfeeswereceiveforuseofanyportionthatwereservefromthe
Lease,afterdeductingfromsuchrentalsandsimilarfeestheamountdeterminedbymultiplyingtherentalsandsimilarfeesbythepercentageusedto
calculatethe7ElevenCharge.YouagreethatwemayremodeltheStoreatanytimeinaccordancewithoneofourremodelprogramsandthatyoucannot
remodeltheStorewithoutourpriorwrittenconsent.
(3)Ifwecurrentlyownthe7ElevenEquipment,wemaysellitandleaseitbackorenterintoothersimilartransactionsinconnection
withafinancingofthe7ElevenEquipment.Ifwecurrentlyleasethe7ElevenEquipment,thentheLeasetoyouisasublease,andcertainprovisionsofthe
masterleaseareincludedonExhibitB.Ifwearenotcurrentlyleasingthe7ElevenEquipmentbutweleaseitinthefuture,thentheLeasetoyouwillbea
sublease,andweagreetoamendExhibitBtosummarizecertainprovisionsofthemasterlease.Youagreetocomplywithalltermsandprovisionsofthe
masterleasereferredtoinExhibitBandnotcauseabreachofanysuchmasterlease.Wemay,atouroption,removeorreplaceanyofthe7Eleven
Equipmentoraddnew7ElevenEquipment,includingcashregistersandpointofsalecomputersand7ElevenEquipmentofatypeorcategoryotherthan
currentlyexists.Anyneworadditional7ElevenEquipmentwillbeaddedtothelistof7ElevenEquipmentonExhibitBorweagreetootherwiseprovide
youwithelectronicorwrittennoticeofsuchchangestothe7ElevenEquipment.Youagreeto,atalltimesuse,aswerequire,all7ElevenEquipment
currentlyintheStoreorthatweaddtotheStore.WemayprovideyouwithreplacementEquipmentifcertainEquipmentisdamagedorbecomes
inoperable.Ifyoufailtopromptlyreturnthedamagedorinoperableequipmenttous,wemaychargeyouforthecostofthereplacementEquipmentby
debitingyourOpenAccount.
(4)Youmaynotmodify,alter,remodeloraddtotheStoreor7ElevenEquipmentordiscontinueusinganyofthe7ElevenEquipment
requiredunderthe7ElevenSystemwithoutfirstobtainingourwrittenconsent.
(b)ThirdPartyBeneficiary.Youarenotathirdpartybeneficiaryof,andwillhavenorightdirectlyorindependentlytoenforce,anymaster
lease.Suchrightsarereservedtoustoexerciseinoursolediscretiononacasebycasebasis.Wearenotassigningtoyouanyrightsofexclusivityornon
competitionoranyotherrightsorremediesunderanymasterlease,andwemayelecttoenforce,ornottoenforce,ourrightsunderanymasterlease
(includingrightsofexclusivityandnoncompetition),inoursolediscretion.Intheeventweelecttoenforcesuchrights,anyproceedspaidtousasaresult
willbefirstappliedtoreimburseusforourattorneysfeesandcostsincurred.Anyremainingproceedsresultingfromafindinginourfavorwithrespectto
breachesofexclusivityornoncompetitioncovenantsinthemasterleasewillbecreditedtoyourOpenAccountafterdeductingfromsuchproceedsthe
amountdeterminedbymultiplyingtheremainingproceedsbythepercentageusedtocalculatethe7ElevenCharge.However,ouragreementtoshare
proceedsresultingfromourenforcementofsuchprovisionsinanymasterleasedoesnotimplythatyouhaveanyrightsorremediesunderthemasterlease.
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(c)DISCLAIMEROFWARRANTIES.YOUAGREETOTAKEALLOFTHESTOREAND7ELEVENEQUIPMENTLEASEDUNDERTHIS
AGREEMENTINASISCONDITION,WITHALLFAULTSANDDEFECTS,SUBJECTTOTHEMASTERLEASE,IFANY,ANDALLDOCUMENTSOF
RECORDAFFECTINGTHESTOREANDTHE7ELEVENEQUIPMENT.WEMAKENOWARRANTY,EXPRESSORIMPLIED,WITHRESPECTTO
THESTOREANDTHE7ELEVENEQUIPMENT,INCLUDINGWARRANTIESOFHABITABILITY,MERCHANTABILITY,SUITABILITYORFITNESS
FORAPARTICULARPURPOSE,QUIETENJOYMENT,NONDISTURBANCE,INTERFERENCEORINFRINGEMENT.
(d)CondemnationAwards.WewillbeentitledtoallawardspaidinconnectionwithanycondemnationaffectingtheStoreand,totheextent
necessarytoeffectuatethisprovision,youassigntousallrightsinanycondemnationawardtowhichyoumaybeentitled,whetherforlossofprofits,
goodwill,movingexpenses,lossofleaseholdorotherwise.Anyproceedsfromacondemnationawardpaidtouswillbefirstappliedtopayourattorneys
feesandcostsincurred.ProvidedyoudonotTransferorreceiveaRefundpursuanttoParagraph26(e),anyremainingcondemnationawardproceeds
specificallyattributedtothegoodwilloftheStoreasagoingconcernwillbecreditedtoyourOpenAccountafterdeductingfromsuchproceedsthe
amountdeterminedbymultiplyingtheremainingproceedsbythepercentageusedtocalculatethe7ElevenCharge.
(e)BreachofLease.Youandweintendtocreateonlyalandlordtenant/lessorlesseerelationshipwithrespecttotheLeaseprovidedherein.If
youbreachthisAgreement,thenwewillbeentitled(inadditiontoanyotherrightsunderthisAgreement)toinvokealljudicialandotherrightsand
remediesavailabletoalandlordorlessor,atlaworinequity,includingsummaryproceedingsforpossessionofleasedpropertytherighttoappointmentof
areceiverorsimilarremediesand/ortherighttoterminate,cancel,ordeclareaforfeitureofthisLease.Ifyoureceivenoticeofbreach,nonrenewalor
terminationfromusandyoufailtovacatetheStoreandsurrenderthe7ElevenEquipmentpriortotheeffectivedateofterminationstatedinthenotice,
thenyouwillbedeemedtobeatenantatsufferanceandatrespasser,youagreetoimmediatelyvacateandsurrendertheStoreandthe7ElevenEquipment,
andyouwillnotbeentitledtoanynoticetoquitorvacate.
9.Term.UnlesssoonerterminatedasprovidedinParagraph26,theTermofthisAgreementwillendattheearlierof(i)fifteen(15)yearsfromthe
EffectiveDateor(ii)theexpirationofourmasterlease,ifany,fortheStorepremises(subjecttoyourTransferorRefundrights,ifany,assetforthin
Paragraph26(e)).
10.7ElevenCharge.
(a)7ElevenCharge.Youagreetopayusthe7ElevenChargefortheLicense,theLeaseandourcontinuingservices.The7ElevenChargeis
dueandpayableeachCollectionPeriodwithrespecttotheReceiptsfromthatCollectionPeriodatthetimethedepositofthoseReceiptsisdue.Wemay
reconcilethe7ElevenChargeaccountreflectedintheFinancialSummariesonamonthlyorotherperiodicbasis.Atthereconciliation,wemaymake
appropriateadjustmentsforchangesinhoursofoperationorotheritemsnecessitatinganadjustmenttothetotal7ElevenChargefortheAccounting
Periodoranyportionthereof.YoumaynotwithholdReceiptsorpreventpaymentofthe7ElevenChargetousonthegroundsoftheallegednon
performanceorbreachofanyofourobligationstoprovideservicestoyouoranyotherobligationstoyouunderthisAgreementoranyrelatedagreement.
(b)Adjustmentto7ElevenChargeforFailuretoMeetRecommendedVendorPurchaseRequirement.IfatanytimeduringtheTermofthis
Agreementwedeterminebasedupondataavailabletous(DeterminationDate)thatyourtotalPurchasesofallproducts,and,separately,totalpurchases
ofcigarettes,donotmeettheRecommendedVendorPurchaseRequirementforany
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consecutivethree(3)fullAccountingPeriods,youagreethatwemayunilaterallyamendthisAgreementtoincreasethepercentageusedtocalculateyour
7ElevenChargebytwo(2)percentagepointsfortheAccountingPeriodnextfollowingtheDeterminationDate,regardlessofwhetheryoumeetthe
RecommendedVendorPurchaseRequirementforsuchAccountingPeriod.Forexample,if50%wasusedtocalculateyour7ElevenChargebeforethe
increase,52%willbeusedtocalculateyour7ElevenChargeaftertheincrease.AftertheAccountingPeriodinwhichtheincreasedpercentageisapplied,
thepercentagepreviouslyusedtocalculatethe7ElevenChargemaybereinstatedprovided,however,thatsuchpercentagemaybeincreasedagain
pursuanttothisParagraph10(b)ifyoufailtomeettheRecommendedVendorPurchaseRequirementforanyotherconsecutivethree(3)fullAccounting
PeriodsduringtheTerm.
(c)Adjustmentto7ElevenChargeuponDeclarationofInvalidityofCertainProvisions.IfanypartofParagraphs15,16and/or22isdeclared
invalidbyacourtofcompetentjurisdictionandwedonotterminatethisAgreementunderParagraphs31(e)and26(a)(8),thenyouagreethatwemay
unilaterallyamendthisAgreementtoincreasethepercentageusedtocalculateyour7ElevenChargebytwo(2)percentagepointsfortheremainderofthe
TermofthisAgreement.IfweelecttoterminatethisAgreementunderParagraphs31(e)and26(a)(8),wewillofferyouadifferent7Elevenfranchise
agreement,whichyoudonothavetoaccept,withatermequaltothetermthenremainingunderthisAgreement,thetermsofwhichwilltakeintoaccount
thecurrenteconomicsituation,theeffectofthecourtsfinaldecision,andsuchotherfactorsaswedeemappropriate.
Ifweadjustyour7ElevenChargepursuanttoParagraph10(b)or10(c)above,thenyouwillcontinuetopaytheAdvertisingFeepursuantto
Paragraph22(a)duringtheperiodoftheadjustment.Ifweadjustyour7ElevenChargepursuanttoParagraph10(c)above,thenyouwillcontinuetopay
theAdvertisingFeeifallowedbytheCourtsdecision.
11.YourDraws.ProvidedthatyouarenotinbreachofthisAgreement,weagreeto:(a)paytoyoueveryweekanamountequaltotheWeeklyDraw
indicatedinExhibitD(b)withinapproximatelyten(10)BusinessDaysaftertheendofeachAccountingPeriod,notifyyouoftheavailableMonthlyDraw
andExcessInvestmentDrawforsuchAccountingPeriodand(c)withinten(10)daysafterwereceiveyourwrittenrequestfortheavailableMonthlyDraw
and/orExcessInvestmentDraw,paytoyoutheamountoftheavailableMonthlyDrawand/orExcessInvestmentDrawthatyouspecifiedinyourrequest,
suchamountnottoexceedthegreateroftheavailableMonthlyDraworExcessInvestmentDraw.
12.BookkeepingandFinancialMatters.
(a)BookkeepingInspectionofRecords.WehavetherighttomaintainBookkeepingRecordswithrespecttoyouroperationoftheStoreas
partofourrecords.Youmayperformorobtainanyadditionalbookkeepingyouwish.EitherpartymayinspectrecordsoftheoperationoftheStore
preparedorobtainedbytheotherpartywheretherecordsaremaintainedduringnormalbusinesshours.
(b)DepositsCashPaymentsforDailyPurchases/OperatingExpenses.
(1)Youagreeto:
(i)properlyprepareanddatetheCashReportandsubmititontime
(ii)depositallReceiptsintoStoresafesorothercurrencycontroldevicesasdesignatedbyusbeforedepositingsuchReceiptsin
theBankornightdepositorywedesignate
(iii)deposittheReceiptsforeachCollectionPeriodwithintwentyfour(24)hoursaftertheendoftheCollectionPeriodinthe
Bankornightdepositorywedesignate,except
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forcashyouspendfromthatdaysReceiptsforPurchasesorOperatingExpensespaidonthatday,providedthatyouproperlyreport,andprovideuswith
invoicesrelatedto,suchcashexpendituresforPurchasesand/orOperatingExpensesand
(iv)delivertous,atthetimeswespecify,writtenverificationbytheBankofthedeposit(thisverificationmustbedatedasofthe
nextdaythebankisopenforbusinessimmediatelyfollowingtheendoftheCollectionPeriod).
(2)Ifwerequest,youagreetodelivertheReceipts(exceptforauthorizedanddocumentedcashexpendituresforPurchasesand
OperatingExpenses)tousratherthandepositingtheReceiptsintheBank.WehavetherightatanytimetorequirethatyouceasepayingforPurchases
and/orOperatingExpenseswithcashoutoftheReceiptsorlimitthosePurchasesand/orOperatingExpensesthatyouarepermittedtomakewithcashout
oftheReceipts.
(3)YouunderstandandagreethatwemaywithdraworuseforourbenefitanyamountsyoudepositintheBankordelivertousatany
time,withoutpayinganyinterestorothercompensationtoyou.YouagreethatwehavetherighttoapplyReceiptsfirsttothepaymentofthe7Eleven
Chargeandthentoamountsthatwepayonyourbehalf.WewillpayinterestoncreditbalancesintheOpenAccountasspecifiedbyParagraph13(c).
(c)ReportsandOtherBookkeepingInformation.
(1)Youagreetoprepareandfurnishtous,onforms,attimes(includingateachcourierpickup),andinthemanner(including
submissioninanelectronicformat)thatwerequire:
(i)dailysummariesofPurchases
(ii)dailyreportsofReceipts
(iii)timeandwageauthorizationsforyourStoreemployeesonaweeklyorotherperiodicbasisthatwerequire
(iv)allinformationwerequestregardingthevendorsfromwhichyoumakepurchases
(v)actualsalesdataand
(vi)alladditionalreportsthatwemayreasonablyrequirefromtimetotime.
(2)Wemayrequireyoutoprepareorfurnishanyrequiredreportsusinginstorecomputers,cashregisterequipmentorothertypesof
equipmentintheStore.
(3)Youagreetodeliverorfurnishtous,withthefrequencyandatthetimeswerequire,copiesofbankdrafts,vendorandotherreceipts,
invoicesforPurchases,andreceiptsandbillsforOperatingExpenses.Youalsoagreetokeepuscurrentlyadvisedelectronicallyorinwriting,aswespecify,
ofallyouractualretailsellingprices(whichyoualonewillset)andofalldiscounts,allowances,and/orpremiumsyoureceive.Inaddition,youagreetouse
electronicequipmentweprovidetoorder,checkinandscanallproductsthatarecapableofbeinghandledinthoseways.Youfurtheragreetokeep(for
suchtimeperiodthatwespecifyfromtimetotime,suchtimeperiodnottoexceedseven(7)years)andmakeavailabletousanyrecords,electronic
documents,orotherdocumentsrelatingtotheoperationoftheStorethatwerequestyoutoretainand/ormakeavailable.Youacknowledgethatweare
relyingontheaccuracyofallinformationyouandyouremployeesprovide,includingallpayrollinformation.Youagreethatallinformationthatyouand
youremployeesprovidewillbetruthful,accurate,complete,andincompliancewithallapplicablelawsandwithallpoliciesorrequirementsweimplement
fromtimetotime,providedthatanychangesinpoliciesorrequirementswillnotchangethefundamentalrequirementsofParagraph12(c)(1).Afurther
descriptionofbookkeepingpracticestobeusedattheStoreandourbookkeepingdisputeresolutionproceduresareincludedintheOnLineSystems
SupportGuidehowever,
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suchbookkeepingdisputeresolutionproceduresdonotsupercedethedisputeresolutionprovisionscontainedinParagraphs29and30,andwearenot
requiredtocomplywithsuchbookkeepingdisputeresolutionproceduresasaconditiontotheexerciseofourrightsunderParagraphs29and30.
(d)ElectronicInvoices.IfwehaveanarrangementwithanyofyourvendorstopayforPurchasesthroughElectronicInvoices,youagreenotto
pay,orrequestthatwepay,suchvendorsinanymannerotherthanthroughElectronicInvoicesinaccordancewithourrequirementsrelatedtoElectronic
Invoicepayments.
(e)FinancialSummariesandAssistanceThatWeProvideYou.IfyouarenotinMaterialBreachofthisAgreement,weagreeto:(1)provideyou
withFinancialSummaries(2)pay,onyourbehalfandinaccordancewiththevendorspaymentterms,afteryouapproveandsubmitthemtous,bankdrafts
andinvoicesforPurchases(asverifiedbythevendorstatementsortheappropriatevendor),billsforOperatingExpensesandthepayrollforyourStore
employeesprovided,however,thatwehavetherighttoimmediatelypayallElectronicInvoicesuponreceiptandwithoutyourpriorapproval,subjectto
yourrighttodisputetheaccuracyofsuchElectronicInvoiceswiththevendorafterpayment(3)payyoudrawchecksasprovidedinParagraph11and(4)
assistyouinpreparingandfilingyourbusinesstaxreportsandreturns(exceptyourincometax,relatedpersonaltaxreturns,andgovernmentalcensus
reports)totheextenttheinformationisavailablefromtheBookkeepingRecords.Youauthorizeustocollectdiscountsandallowancesthatwerenot
alreadydeductedfrominvoices,andtochargeyouforthemarketvalueofanypremiumsyoureceivebaseduponPurchases.Youacknowledgethatwemay
prepareInterimFinancialSummariesatanytime.
(f)7ElevenStoreInformationSystem.Youagreetousethe7ElevenStoreInformationSysteminconnectionwithyouroperationoftheStore
inaccordancewithourrequirements.Youagreethatweownallinformationanddatacompiledbyorstoredinthe7ElevenStoreInformationSystem,and
thatwewillhaveelectronicaccessto,andtherighttouseinanymannerweelect(includingsellingandretainingallproceedsfromsuchsales)the
informationcompiledandmanagedbyorstoredinthe7ElevenStoreInformationSystemoranyotherstoreinformationsystemsusedatorbytheStoreat
thetimesandinthemannerthatwespecify.Youmaynotinanywayuseordisclosealloranypartoftheinformationordatacompiledbyorstoredinthe7
ElevenStoreInformationSystem,exceptinconnectionwithyouroperationoftheStoreandasneededtoeffectivelyworkwithyourStoresuppliers.You
maynotsellalloranypartoftheinformationordatacompiledbyorstoredinthe7ElevenStoreInformationSystemtoanyindividualorentity.
13.OpenAccountFinancingandMinimumNetWorth.
(a)OpenAccount.AspartoftheBookkeepingRecords,weagreetoestablishandmaintainanOpenAccountforyou.Youagreetopayusany
unpaidbalanceintheOpenAccountuponexpirationorterminationoftheAgreementorearlierasprovidedinParagraph13(b).WewilldebitallPurchases,
OperatingExpenses,drawpaymentstoyouandamountsyouoweuswhichrelatedirectlyorindirectlytotheoperationoftheStoretotheOpenAccount
fortheAccountingPeriodinwhichwereceiveinvoices,reportsorotherinformationwithrespecttosuchPurchases,OperatingExpensesandamountsyou
oweus,regardlessofwhenwepaysuchamountsforyou.WewilldebitthedifferencebetweentheDownPaymentandtheunpaidbalanceonyourinitial
investmenttotheOpenAccount.WewillcreditallReceiptstotheOpenAccountfortheAccountingPeriodinwhichtheCashReportrelatingtothose
Receiptsisdated,providedthatyouproperlydepositthoseReceiptsintheBank,deliverthemtous,orotherwiseproperlyaccountforthemasprovidedin
thisAgreement.WemayalsocreditanyamountsweoweyoutotheOpenAccount.WewillcomputethebalanceintheOpenAccountinthemannerwe
considerappropriateonamonthlybasisoratanytimeduringanAccountingPeriodthatweconsideritnecessary.WewillshowtheOpenAccountbalance
intheFinancialSummariesorInterimFinancialSummariesthatweprepareforeachAccountingPeriod(oranyportionthereof).
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(b)Financing.WeagreetofinanceanyunpaidbalanceintheOpenAccountasaloantoyou,providedthat(1)youarenotinMaterialBreach
ofthisAgreement(2)youhavegrantedus,andwecontinuetohave,afirstlienontheCollateraland(3)youhaveexecutedaSecurityAgreementand
financingstatements(includinganyrenewalorcontinuationfinancingstatementsthatwerequire).IfatanytimetherehasbeenaMaterialBreachbyyou
orwebelievethatanyoftheconditionssetforthabovearenotmetorifwereasonablybelievethatoursecurityinterestisthreatened,wemaydiscontinue
thefinancingdescribedabove.Ifwedoso,youagreetoimmediatelypayustheunpaidbalanceintheOpenAccount.
(c)Interest.IfweprovidefinancingontheunpaidbalanceintheOpenAccountasdescribedabove,thentheamountoftheunpaidbalancein
theOpenAccountatthebeginningofeachAccountingPeriodwillbearinterestforthenumberofdaysinthethencurrentAccountingPeriodattherate
specifiedinExhibitD.IfthereisacreditbalanceintheOpenAccountatthebeginningofanyAccountingPeriod,thentheamountofthecreditbalance
willbearinterestforthenumberofdaysinthethencurrentAccountingPeriodattheratespecifiedinExhibitD.Wewillcreditordebit,asapplicable,to
theOpenAccountanamountequaltotheaccruedinterest.However,atoursoleoption,wemaylimitthecreditbalanceamountintheOpenAccountupon
whichwewillpayinteresttoyouuponnoticetoyou.Anysuchnoticewillbeeffectivethree(3)daysafterwesendsuchnoticetoyou,andsuchnoticewill
adviseyouofyourrighttowithdrawthefullcurrentcreditbalanceintheOpenAccount.WewillpayyouinterestasdeterminedunderthisParagraph13(c)
onthecurrentcreditbalanceuntilthenoticeiseffective.
(d)MinimumNetWorth.YouagreetomaintainatalltimesduringtheTermofthisAgreementaMinimumNetWorthofatleastfifteen
thousanddollars($15,000).Ifyouoperatemorethanone(1)franchised7ElevenStore,youagreethatwemaytransferNetWorthinexcessoftheMinimum
NetWorthinone(1)ofyour7ElevenStorestoanotherofyour7ElevenStoreswhichhasaNetWorthbelowtheMinimumNetWorth,ordirectlytousif
theotherStoresFranchiseAgreementisterminatedorexpiresandtherewasanunpaidbalanceintheOpenAccountatthetimeofterminationor
expiration.
14.AuditRights.Weagreetoconductatleastone(1)Auditeachcalendarquarterorinanyotherthree(3)monthperiodthatwedesignate.Ifyou
request,wewillconductadditionalAuditsforafeeequaltothecostofconductingtheAudit.InadditiontoourAuditrights,youmayengageareputable,
qualifiedthirdpartytoconductAuditsoftheStoreupontwentyfour(24)hourspriorwrittennoticetous.Wehavetheright,atouroption,toenterthe
StoreandconductAudits:(1)duringhoursthattheStoreisrequiredtobeopenuponseventytwo(72)hoursnoticeor(2)atanytimeandwithoutnotice(a)
afterwelearnofaRobbery,Burglary,theft,mysteriousdisappearanceofInventory,Receiptsand/oralloranyportionoftheCashRegisterFund,or
casualty(b)ifyoufailtoproperlyaccountforReceiptsorreportPurchasesand/orOperatingExpenseswithinthetimeperiodsprovidedforinthis
Agreement(c)ifNetWorthislessthantheMinimumNetWorthrequiredunderParagraph13(d)or(d)ifthelastAuditweconductedreflectsanInventory
OverageorInventoryShortageofmorethanonepercent(1%)oftheRetailBookInventory.YouandweacknowledgethataccurateAuditsmaybemade
whiletheStoreisopenforbusiness.Youagreethat,ifyouoperatemorethanone(1)franchised7ElevenStore,andweareproperlyconductinganAuditat
one(1)ofyourStores,thenwehavetherighttosimultaneouslyconductAuditsofallofyour7ElevenStores,regardlessofwhethertheconditionsfor
Auditingyourother7ElevenStoreshavebeenmet.BothpartiesshallreceivecopiesofthereportoneachAudit.Auditsshallbebindingtwentyfour(24)
hoursafterreceiptofsuchreportunlesseitherpartygivesnoticethatsuchpartybelievestheAudittobeincorrect.Ifsuchnoticeisgiven,eitherpartymay
causeareAudittobeperformedwithintwentyfour(24)hours.IfanysuchreAuditconductedforyoubecomesbindingandresultsinanadjustmentinany
InventoryShortageorInventoryOveragereflectedbythelastAuditofmorethan1%oftheRetailBookInventory,weagreetobearthereasonablecostof
suchreAudit.
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15.MerchandisingandInventoryRecommendedVendors.
(a)InitialInventory.OnorbeforetheEffectiveDate,weagreeto:(a)procuretheinitialInventorywhichyouwillpurchaseforitsCostValue,
exceptinthecaseofconsignedmerchandise(b)debityourOpenAccountforanyprepaidOperatingExpenses(c)helpyoucleanandstocktheStoreand
(d)provideotherservicestopreparetheStoretoopenforbusiness.
(b)OngoingInventoryandCategories.AftertheEffectiveDate,youagreetoatalltimesduringtheTermofthisAgreementcarryattheStore
allCategoriesofInventorythatwespecify.YoumaydeleteanyCategoryifsuchCategorydoesnotmeetsalesgoalsthatweestablish,providedthatyou
obtainourpriorwrittenconsent,whichconsentwillnotbeunreasonablywithheld.Youagreetocarry,useandofferforsaleattheStoreonlytheInventory
andotherproductsthatareconsistentwiththetype,quantity,quality,andvarietyassociatedwiththe7ElevenImageandaswespecifyintheAgreement.
YouagreetocomplywithallofourstandardsandspecificationsforallInventory,includingProprietaryProductsandotherproductsandservicescarried,
usedorofferedforsaleattheStore.
(c)ProprietaryProducts.Youagreethatwehavedevelopedandmaydevelopforuseinthe7ElevenSystemcertainProprietaryProductsallof
whichareproprietarytousandwhichareourTradeSecrets.YouacknowledgetheimportanceoftheProprietaryProductstothe7ElevenSystem,andagree
tomaintainintheStoreatalltimesaReasonableandRepresentativeQuantityofallProprietaryProductslistedinExhibitGorotherwiseinwriting.We
maychangetheProprietaryProductsthatyouarerequiredtoofferfromtimetotimeuponreasonablenotice(deliveredinelectronicorotherform)toyou
eitherbyunilaterallymodifyingExhibitGorbyotherwiseprovidingyouwithwrittennoticeofthechangeintheProprietaryProductsthatyouare
requiredtooffer.Effectivebeginningthirty(30)daysafterwenotifyyouofthechange,youagreetocarryandofferforsalethenewormodifiedProprietary
Products.
(d)ProductPackagingandDisplay.Ifwerequirethataproduct(includingaProprietaryProduct)besoldinastandardizedcontainerorspecial
packaging(includingacontainerorpackagethatbearstheServiceMark),orbesoldusingcertaindisplaycases,equipment,orotherrelatedcomponents
(includingbagsandnapkins),youmayuseonlythestandardizedcontainers,packaging,displaycases,equipmentandothercomponentsthatconformto
thetype,styleandqualitywespecifyandthatbearanydistinctiveidentificationwemaydesignate.Youagreetoproperlyaccountfortheseitemsas
requiredbythisAgreementandtocarryallcomponentsdesignatedbyusasnecessaryforanyProprietaryProduct.Youmayusecontainers,packaging,
displaycases,equipmentandrelatedcomponentsdesignatedforuseinconnectionwithdesignatedProprietaryProductsonlyinconnectionwiththeoffer,
saleorpromotionofdesignatedProprietaryProducts,unlessyouobtainourpriorwrittenpermission.
(e)Nationally/RegionallyPromotedProductsandExclusiveProducts.YouagreetocarryattheStoreaReasonableandRepresentative
Quantityofalldesignated(i)nationallyorregionallyadvertisedorpromotedproductsthataresupportedbyelectronicorpublishedmediaand(ii)products
thatareexclusiveto7Elevenintheconveniencestorechannel.Youagreetocarrytheproductsspecifiedin(i)and(ii)aboveduringtheentiredurationof
thenationalorregionaladvertisingorpromotionalcampaignorperiodofexclusivity,asapplicable.Notwithstandingtheforegoing,youmaydiscontinue
carryinganynationallyorregionallyadvertisedorexclusiveproductsifsuchproductsdonotmeetsalesgoalsthatweestablishandyoufollowtheprocess
weestablishfordeterminingwhethertheitemsmeetsuchgoals.Themethodfordeterminingsalesgoalsandtheprocessfordeletionforsuchproductswill
beincludedintheOnLineSystemsSupportGuide.ThisParagraph15(e)shallnotapplytoProprietaryProducts.
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(f)SuggestedRetailSellingPrices.WemaysuggestretailsellingpricesforInventoryitemsandservicesthatyouofferatyourStore.Youhave
noobligationtosellInventoryitemsandservicesatoursuggestedretailsellingprices,butyouagreetoaccuratelyandtimelyreporttousyouractualretail
sellingpricesasrequiredbythisAgreement.
(g)VendorRequirements.
(1)YouagreetopurchaseyourInventoryandotherproductsandservicesonlyfromBonaFideSuppliers.Exceptforsharesinpublicly
tradedcompanies,youagreenottohaveormaintainanyownershiporvotinginterestinanyvendorfromwhichyourStorepurchasesInventory,unlesswe
otherwiseconsentinwriting.
(2)YouagreetoatalltimesduringtheTermpurchaseatleasteightyfivepercent(85%)ofyourtotalPurchasesand,separately,eighty
fivepercent(85%)ofyourcigarettepurchases,bothcomputedmonthlyatcost,fromRecommendedVendorsincompliancewiththeRecommendedVendor
PurchaseRequirement,whichisfurtherdefinedinExhibitE.
(3)Youacknowledgethevalue,importance,andbenefitstothe7ElevenSystemofauniformmethodandclosecontrolofproduction,
distribution,and/ordeliveryofProprietaryProducts.YouagreetopurchaseallofyourrequirementsforsuchProprietaryProductssolelyfromorthrougha
source(includingmanufacturers,wholesalers,anddistributors)wedesignateorfromus.YouagreenottoofferorsellattheStoreanyproductswhich
directlycompetewiththeProprietaryProductswedesignateasexclusive,unlessyouobtainourpriorwrittenconsent.
(h)RecommendedVendorProcedure.IfyouwantaBonaFideSupplierwhoisnotcurrentlyaRecommendedVendortobecomea
RecommendedVendor,youortheBonaFideSuppliermustsubmittousawrittenrequestforapprovalandcomplywiththeRecommendedVendor
proceduresetforthinthisParagraph15(h).UponourreceiptofyourrequesttohaveaBonaFideSupplierbecomeaRecommendedVendor,weagreeto
reviewthequalificationsoftheBonaFideSupplier,aftersubmissionofallnecessarydataandadequatecooperation,todeterminewhethertheBonaFide
SuppliermeetsourreasonablebusinessandrelatedrequirementsforaRecommendedVendor.Wereservetherighttodetermine,inoursolediscretion,
whetheraBonaFideSuppliermeetsthenecessaryrequirementstobecomeaRecommendedVendor.TheprocessforRecommendedVendorapprovaland
thegeneralrequirementsaBonaFideSuppliermustmeettobecomeaRecommendedVendoraresetoutonthe7ElevenIntranet.Wereservetherightto
revokeourapprovalofaBonaFideSupplierasaRecommendedVendoriftheBonaFideSupplierfailstocontinuetomeetanyofourthencurrentcriteria.
WearenotrequiredtoapproveanyparticularBonaFideSupplierasaRecommendedVendor.Wewillprovideyouwithatleastfifteen(15)daysnoticeof
anynewRecommendedVendorsfromwhichyoumustpurchase.
(i)DesignatedServiceVendors.Wemayrequireyoutouseonlydesignatedvendorsthatprovideequipmentasanintegralpartofcertain
servicesthatareofferedatyour7ElevenStore,includingpaytelephoneservices,automatedtellermachines(ATMs),andotherfinancialand/orelectronic
services.Youagreetocomplywithourreportingrequirementswithrespecttosuchservicesandrevenuederivedfromthesaleofsuchservices,asthose
requirementsmaybemodifiedfromtimetotime.
(j)OurVendorNegotiatingPracticesandTreatmentofDiscountsandAllowances.
(1)InnegotiatingourcontractswithRecommendedVendorsandmanufacturers(ineithercaseVendor)forproductsandservicessold
in7ElevenStores,wewilltakethefollowingsteps:
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(i)WeagreetomakeacommerciallyreasonableefforttoobtainthelowestcostforproductsandservicesavailablefromsuchVendorto
7ElevenStoresonaMarketBasketBasisbyidentifyingallavailablediscounts,allowancesandotheropportunitiesforpriceadjustments.
(ii)Wewillthendeterminewhetherornottoacceptanydiscounts,allowancesandotheropportunitiesforavailablepriceadjustment
by:
evaluatingthelimitations,restrictionsandconditionsplacedontheadjustmentbytheVendor,and
takingintoconsiderationwhetherthenatureandrequirementsofaparticularVendorsofferisconsistentwithourbusiness
conceptandstrategies.
Ifwedecidetoacceptanallowance,wewillasktheVendortolowerthecostforproductsandservicesavailablefromsuchVendorto7
ElevenStoresinlieuofprovidingtheallowance.IftheVendoradvisesusthatitwillnotlowerthecostofitsproductsandservicesandwedecidetoaccept
theallowance,wewilldosoaccordingParagraph15(j)(1)(iii)through(vi).
(iii)IfcooperativeadvertisingallowancesareavailablefromtheVendorandtheVendoradvisesusthatitwillnotlowerthecostofits
productsandservicesto7ElevenStoresinlieuofprovidingsuchcooperativeadvertisingallowances,thenwewillacceptandusesuchcooperative
advertisingallowancesasdesignatedbytheVendor.
(iv)IfthereareanyotherallowancesavailablefromtheVendorandtheVendoradvisesusthatitwillnotlowerthecostofitsproducts
andservicesto7ElevenStoresinlieuofprovidingsuchallowances,thenwewillrequestthattheVendorprovidesuchallowancesascooperative
advertisingtobeusedasdesignatedbytheVendor.
(v)IftheVendoradvisesusthatitwillnotprovidesuchotherallowancesascooperativeadvertising,thenwewillacceptandusesuch
allowancesasdesignatedbytheVendor.
(vi)WewillrequestfromtheVendorwrittenconfirmationthattheVendorwillnotlowerthecostofitsproductsandservicesto7
ElevenStoresinlieuofprovidinganyavailableallowances.
(vii)WewillusecommerciallyreasonableeffortstoincludeinallofourcontractswithRecommendedVendorsprovisionsforminimum
standardsforinstockrates,assortment,deliverytimewindows,qualitystandards,customerassistanceandotherstandardsdesignedtoassisttheStore,as
wellasincentivesfortheRecommendedVendorformeetingthestandardsandpenaltiesforfailuretocomplywithsuchstandards.
(2)AnythinginthisParagraph15(j)orExhibitJtothecontrarynotwithstanding,wewilltreatalldiscountsandallowancesinthe
mannerprovidedforinthedefinitionofCostofGoodsSoldsetforthinExhibitE.
(k)ReviewofVendorNegotiatingPracticesandTreatmentofDiscountsandAllowances.BeginningJanuary1,2005,weagreetopaythe
reasonablecosts,uptoatotalof$75,000percalendaryear,incurredbytheFranchiseeSelectionCommittee(definedinExhibitJ)inrelationtothe
retentionofanindependentthirdparty(ThirdPartyReviewer)asprovidedinExhibitJandfortheconductofthereviewcontemplatedbyExhibitJ,each
inaccordancewiththeproceduressetforthinExhibitJ.Youagreethat(i)thedisputeresolutionproceduressetforthinExhibitJaretheexclusive
proceduresforresolvinganydisputesrelatingtoorarisingfromourundertakingunderParagraph15(j)(1)
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and(2)(ii)thereviewprocesscontemplatedbythisParagraph15(k)shallbethesoleremedyforanybreachorallegedbreachofParagraphs15(j)and(k)
and(iii)innoeventwillyoubeentitledtorecovermonetarydamagesorequitablereliefforourfailuretomeetourobligationsunderParagraph15(j)(1)or
underthedefinitionofSystemTransactionAmountsinExhibitEandthedamagesthatyoumaybeentitledtobaseduponourfailuretomeetour
obligationsunderParagraph15(j)(2)arelimited,allasprovidedinExhibitJ.
16.7ElevenFoodserviceStandards.
(a)Compliancewith7ElevenFoodserviceStandards.YouagreetooperatetheStore,includingtheFoodserviceFacility,atalltimesin
compliancewiththe7ElevenFoodserviceStandardsandincompliancewithallapplicablelaws,regulationsandcodes,includingtheU.S.Food&Drug
AdministrationModelFoodCode.
(b)7ElevenFoodserviceStandardsRelatedtoFreshFoods.WithoutlimitingthegeneralityofParagraph16(a),youagreetocomplywithallof
ourmerchandisingandshelfliferequirementswithrespecttoFreshFoodsandtopurchaseFreshFoodsonlyfromRecommendedVendors.
(c)FoodserviceCertificationStandards.Whererequiredbyapplicablelawsorregulations,youagreetocauseallStoreemployeestobe
certifiedasqualifiedtoworkintheFoodserviceFacilitybeforetheybeginworkthereandprominentlydisplaythecertificatesevidencingeachemployees
certification.
(d)QualityInspections.WewillhavetherighttoentertheStorepremisesatanytimeduringthetimesinwhichtheStoreisrequiredtobeopen
forthepurposeofconductinginspectionstodeterminewhethertheStoreisincompliancewith7ElevenFoodserviceStandards.Youagreetocooperate
withourrepresentativesinsuchinspectionsbyrenderingsuchassistanceastheymayreasonablyrequest.Youalsoagreetopermitustoremovea
reasonablenumberofsamplesoffoodornonfooditemsfromtheStore,withoutpayment,subjecttoyourabilitytoproperlywriteoffanysuchproducts,in
amountsreasonablynecessaryfortestingbyusoranindependentlaboratorytodeterminewhethersuchsamplesmeetthe7ElevenFoodserviceStandards.
(e)FailuretoComplywith7ElevenFoodserviceStandards.Ifyoudonotcomplywiththe7ElevenFoodserviceStandards,includingquality
standardsorotherreasonableoperatingstandardsthatweestablishfromtimetotime,wewillgivenoticeofthebreachtoyou.Ifyoudonotcurethebreach
afternoticeandareasonableopportunitytocure,wemayperform(orhaveperformed)anyactionnecessarytoremedythebreach.Ifwedoso,wemaydebit
yourOpenAccountforthecostofcuringthebreach.If,afterreceivingtwo(2)previousnoticesofbreachandopportunitiestocure,withinanyfive(5)year
periodyoureceiveathirdnoticeofbreach,wemay,atoursoleoption:(1)removetheentireFoodserviceFacilityorportionsoftheFoodserviceFacility,as
weconsiderappropriate,fromtheStoreanddebityourOpenAccountforthecostofthisremovalandofrestoringtheStoretoitspreviousconditionand/or
(2)pursueallotherremediesavailabletousunderthisAgreement,includingterminationofthisAgreementpursuanttoParagraph26.However,ifinour
opinionyourbreachinvolvesafailuretocomplywithanyofthe7ElevenFoodserviceStandardswhichareintendedtoprotectthehealthorsafetyof
personsorofanyfederal,state,orlocalhealthregulations(includingtheU.S.Food&DrugAdministrationModelFoodCode),orconstitutesathreatto
anyperson,thenwemayrequireyoutoimmediatelystopservinganyorallitemsfromtheFoodserviceFacility,andyouwillnotbepermittedtoresume
offeringorsellingsuchitemsuntilyouhavecuredthebreachtooursolesatisfaction.
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17.OurIndemnification.ExceptasotherwiseprovidedinthisAgreement,
(a)WeagreetoberesponsibleforallfireandcasualtylossordamagetotheStorebuilding(specifiedinExhibitA)and7ElevenEquipment
(specifiedinExhibitB)unlesscausedbyyourintentionalactsortheintentionalactsofyouragentsoremployees.
(b)WeagreetoindemnifyyouforlossesanddamagesrelatedtotheoperationoftheStoreasprovidedinthe7ElevenContractual
IndemnificationinExhibitCtothisAgreement,unlesssuchlossesordamagesarecausedbyyourintentionalactsortheintentionalactsofyouragentsor
employees.Wemaycancelthisindemnificationorchangethisindemnificationandanyrelateddefinitionsone(1)timeduringeachcalendaryear,orwe
mayreplacethisindemnificationwithaninsurancepolicythatweprovideorathirdpartyprovidesonourbehalf.Suchcancellation,change,or
replacementwillbeeffectiveonthefirstdayofthefirstAccountingPeriodfollowingthethirtieth(30 th)dayafterwegiveyounoticeofsuchcancellation,
change,orreplacement.
18.YourIndemnificationInsurance.Youagreetoberesponsibleforandindemnifyus,ourAffiliates,andourandtheirrespectiveofficers,directors,
agents,representatives,employees,successorsandassigns(collectively,the7ElevenIndemnifiedParties)fromalllossesarisingoutoforrelatingto
yourStoreanditsoperation,exceptthosespecificallytheresponsibilityoforindemnifiedbyus.Thisindemnificationwillsurvivetheexpiration,
termination,ortransferofthisAgreementoranyinterestinthisAgreement.Youmayobtaininsurancetocoveryourindemnificationobligation.Yourtotal
indemnificationobligationtouswillnotexceed$500,000.Youmayalsoobtaininsuranceinadditiontothecontractualindemnificationdescribedin
ExhibitC.Youagreetonotifyusifyouobtainanysuchinsurancepolicy,andthatpolicywillnameusasanadditionalinsured.Wewillhavenoobligation
toprocessclaimsforyou.Ifyouhaveobtainedsuchinsurance,itwillbeprimary,andourindemnitywillbesecondarytothatinsuranceexceptfor
insurancecoveragespecificallyendorsedtocoverlossesoverandabovethecontractualindemnification.Youagreetomaintainworkerscompensation
insurance,includingemployersliabilitycoverage,withareputableinsurerorwithastateagency,satisfactorytous,evidenceofwhichwillbedeposited
withus(ifwithaninsurer,suchevidencemustreflectthatthepremiumhasbeenpaidandthat30dayspriornoticetousisrequiredforanycancellationor
change).Youagreetopromptlyreporttousallcasualtylossesandothereventscoveredbyindemnificationoryourinsurance.
19.YourAdditionalCovenants.InadditiontoyourothercovenantsandobligationscontainedinthisAgreement,youagreeto:
(a)maintainahighethicalstandardintheconductofthefranchisedbusinessandintheoperationoftheStore
(b)devoteyourbesteffortstothebusinessoftheStoreandtomaximizingtheStoressalesandGrossProfit
(c)makeyourselfavailabletomeetwithusatreasonabletimes,atourrequest
(d)maintaintheStoreasa24HourOperation,unlessprohibitedbylaworweagreeinwritingtodifferentoperatinghours
(e)provideusaccesstotheStore,7ElevenEquipment,Inventory,Receipts,CashRegisterFund,cashregisterreadings,bankingandother
equipmentreadings(includingreadingsfromlotteryequipment),moneyorderblanks,bankdrafts,andStoresuppliesatanytimeandforanyperiodoftime
duringthetimesinwhichtheStoreisrequiredtobeopen
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(f)properlyrecordallsalesofInventoryatthetimeofsaleattheretailpricesyousetandgenerallyoffertocustomersoftheStore
(g)wear,andcauseStoreemployeestowear,onlytheapparel,includingneatandcleanuniforms,approvedbyuswhileworkingintheStore
(h)atalltimes,usethe7ElevenPayrollSysteminaccordancewithourstandards,unlessweotherwiseconsentinwriting
(i)complywithand/ortoassistustothefullestextentpossibleinoureffortstocomplywithAntiTerrorismLaws.Inconnectionwithsuch
compliance,youcertify,represent,andwarrantthatnoneofyourpropertyorinterestsissubjecttobeingblockedunderanyoftheAntiTerrorismLaws
andthatyouarenototherwiseinviolationofanyoftheAntiTerrorismLaws.AnyviolationoftheAntiTerrorismLawsbyyou,oryouremployeesorany
blockingofyourassetsundertheAntiTerrorismLawswillconstitutegroundsforimmediateterminationofthisAgreementandanyotheragreementyou
haveenteredwithusoroneofourAffiliates,inaccordancewiththeterminationprovisionsofthisAgreement
(j)notto,inanyway,representyourselftoanyone,includingthemedia,asourrepresentativeandnottomakeanycommenttoanyone
purportingtobeacommentaboutusorthe7ElevenSystemasoneofourrepresentatives.Youagreetoatalltimesclearlyidentifyyourselfasoneofour
franchiseesinanypublicstatementsaboutusorthe7ElevenSystem
(k)executealllicenseagreementsorsimilaragreementswithusorthirdpartiesrequiredfortheinstallationand/oruseofcomputerhardwareor
softwareinconnectionwiththeoperationofyourStoreand
(l)authorizeustoobtainfromthirdpartiesallinformationregardingtheoperationofyourStore(forexample,informationfromstatelottery
agenciesandvendors)andexecutealldocumentationrequiredtoeffectuatesuchauthorization.
20.MaintenanceandUtilities.
(a)YourMaintenanceObligations.Excepttotheextentwemayexpresslyassumeanyofthefollowingresponsibilitiesinwriting,youagreeto
beresponsibleforallmaintenance,repairs,replacements,janitorialservicesandexpensesrelatingtotheStoreand7ElevenEquipment,including:(1)
maintainingtheStore,7ElevenEquipment,otherpropertyintheStoreandlandscapedareasinaclean,attractive,orderly,safe,andsanitaryconditionand
ingoodrepairandoperatingcondition,reasonablewearandtearexcepted(2)replacinglightbulbs,ballasts,vaultdoors,glass,anddoorclosersonthe
Storeand7ElevenEquipmentand(3)cleaningtheStoreinterior,theparkinglotandwalkareas,includingsnowandiceremoval.
(b)MaintenanceContracts.
(1)ExcepttotheextentthatwemayexpresslyassumeinwritinganyoftheaboveresponsibilitiesorthatanymasterleaseoftheStore
provides,youagreetoobtainMaintenanceContractswithreputablefirmsformaintenanceoftheStoreand7ElevenEquipmentand,ifweconsiderit
appropriateornecessary,forthelandscapedareasoutsidetheStore.Provided,however,youagreetouseandpayformaintenanceandrepairservicesforthe
7ElevenStoreInformationSystemthatisprovidedbyavendorwedesignatefromtimetotime.AllotherMaintenanceContractsmusteither(a)bethe
contractsavailablethroughusor(b)becontractsthatwehaveapprovedinwritingasprovidedinParagraph20(b)(2)belowwhichcoverservices
comparabletothoseprovidedunderthecontracts
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availablethroughus.MaintenanceContractsmustnotincludeanymaintenanceservicesontheHVACEquipment.
(2)Forall7ElevenEquipmentprovidedbyus,exceptforthe7ElevenStoreInformationSystem,ifyoudonotuseMaintenance
Contractsavailablethroughus,youagree:(a)toprovideuswithacopyofeachsuchMaintenanceContractthatyouproposetoenterinto,(b)toobtainour
writtenapprovalofeachsuchMaintenanceContractbeforeyouenterintoanysuchMaintenanceContract,and(c)thatsuchMaintenanceContractsmust
providefortheperformanceofservices,includingpreventativemaintenanceservices,comparabletothoseservicesavailablethroughusatthetimethe
MaintenanceContractisenteredintoandmustbewithreputable,financiallyresponsiblefirms,which(i)maintainadequateinsuranceandbonding(ii)
havepersonnelwhoarefactorytrainedtoserviceequipmentthatisthesameorsimilartypeasthe7ElevenEquipmentintheStoreand(iii)maintaintools
andanadequatesupplyofpartsforthe7ElevenEquipment.YourMaintenanceContractsforlandscapedareasoutsidetheStoremustbewithreputable,
financiallyresponsiblefirms.
(c)YourFailuretoMaintaintheStore.IftheStore,7ElevenEquipmentorlandscapeisnotmaintainedasrequiredaboveandthecondition
continuesforseventytwo(72)ormorehoursafterweprovidenoticetoyou,oriftheconditionexistsuponexpirationorterminationofthisAgreement,
thenwewillhavetherighttocausethemaintenancetobeperformedatyourexpenseand/ortoobtainMaintenanceContractsfortheStoreand7Eleven
Equipmentandchargeyouforthemaintenance.
(d)MaintenancePerformedByorThroughUs.WhenweconsideritnecessaryduringtheTermofthisAgreement,weagreeto:(1)repaintand
repairtheinteriorandexterioroftheStore(2)replace7ElevenEquipment,includingcashregistersandpointofsalecomputers(3)replaceplateglassin
frontwindowsandfrontdoors(4)repairthefloorcovering,exteriorwalls,roof,foundation,andparkinglot(5)maintainthestructuralsoundnessofthe
Storeand(6)maintaintheHVACEquipment.Youherebyconsenttotheforegoing.Wemaychargeyouforanyoftherepairsorreplacementscontemplated
bythisParagraph20(d),if,inourreasonableopinion,yourabuseorneglectmakesthemnecessary.
(e)Utilities.Weagreetopayforsewer,water,gas,heatingoilandelectricityforoperationoftheStoreandtopayforalltelephonelinesused
fortheoperationoftheStore,exceptforthemaintelephonelineattheStore,thecostofwhichisyourexpense.
21.Taxes.WeagreetopayallrealandpersonalpropertytaxesrelatedtotheStoreand7ElevenEquipmentspecifiedinExhibitsAandB.Youagree
tobesolelyresponsiblefor,andmustpay,allothertaxes,includingsales,inventory,payroll,occupancy,businessandincometaxesandpersonalproperty
taxesrelatedtotheStoreandanyequipmentattheStoreotherthanthe7ElevenEquipmentprovidedbyorthroughus.
22.Advertising.
(a)AdvertisingFee.
(1)YouagreetopayustheAdvertisingFeeinthesamemannerandatthesametimeasyoupayusthe7ElevenChargeinaccordance
withParagraph10.AdvertisingFeesbecomeourpropertytobespentbyusinaccordancewithParagraph22(a)(3)andarenotheldbyusintrust.
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(2)TheamountoftheAdvertisingFeewillbedeterminedforeachAccountingPeriod,asfollows:
BasePeriodGrossProfit
FormulaforDeterminationofAdvertisingFee
Morethan$400,000
$300,000to$400,000
Lessthan$300,000
GrossProfitfortheAccountingPeriodx0.015(1.5%)
(BasePeriodGrossProfitx0.045)$12,000X
GrossProfitforthe
BasePeriodGrossProfit
AccountingPeriod
GrossProfitfortheAccountingPeriodx0.005(.5%)
BasePeriodGrossProfitisdefinedinExhibitE.IftheStorehasnotbeeninoperationfortwelve(12)fullmonths,thentheaverageGrossProfitfor
all7ElevenStoresinthethencurrentlyassigned7ElevenmarketorotherStoreunitgroupdesignatedbyusinwhichtheStoreislocatedforthetwelve
(12)monthsimmediatelyprecedingthecurrentAccountingPeriodwillbeusedtodeterminetheBasePeriodGrossProfitforthefirstyearofStore
operations.
ThefollowingisanexampleofhowtheaboveformulaforaBasePeriodGrossProfitofbetween$300,000to$400,000resultsinanAdvertisingFee
foragivenAccountingPeriod:ifBasePeriodGrossProfitequals$340,000,andthecurrentAccountingPeriodGrossProfitequals$28,333.33,thenthe
formularesultsinanAdvertisingFeeof$274.83,determinedasfollows:
$340,000.00x0.045=$15,300minus$12,000=$3,300
$3,300dividedby$340,000=.0097(.97%)
.0097times$28,333.33=$274.83
(3)Wemayarrangeforalladvertisingofthe7ElevenSystem,theServiceMark,theRelatedTrademarks,ormerchandisesoldinor
servicesofferedby7ElevenStores,aswedesire.WeagreetospendtheAdvertisingFeeswecollectforAdvertisingMaterialsandProgramswhichmay,in
oursolediscretion,beusedforthegeneralbenefitofthe7ElevenSystem,forlocal,regional,and/ornationalpromotions,orforspecific7ElevenStore(s).
Weagreetoacceptsuggestionsfrom7ElevenfranchiseesontheuseofthefundscollectedasAdvertisingFees.Provided,however,youagreethatwehave
andwillcontinuetohavethesoleandabsoluterighttodeterminehowAdvertisingFeeswillbespent,includingtheselection,directionandgeographic
allocationofAdvertisingMaterialsandProgramsandthetypesofmediautilizedandthatweandourAffiliateshavenofiduciaryobligationtoyouorto
other7ElevenfranchiseeswithrespecttosuchdeterminationsorexpendituresoftheAdvertisingFees.
(4)WeundertakenoobligationtomakeexpendituresofAdvertisingFeeswhichareequivalentorproportionatetoafranchisees
AdvertisingFeepaymentortoensurethatanyparticularfranchiseebenefitsdirectlyorproratafromsuchexpendituresorfromtheAdvertisingMaterials
andProgramsfundedbytheAdvertisingFees.
(5)Youagreethatwehavetherighttopayorreimburseourexpensesofcreating,developing,maintainingandadministering
AdvertisingMaterialsandProgramsfromtheAdvertisingFeesprovided,however,thatweagreenottousetheAdvertisingFeestopayorreimburse
ourselvesforanyinternalcostsforadministeringAdvertisingMaterialsandProgramsorforanyinhouseadvertisingagencycosts.Youfurther
acknowledgethatcompanyoperatedStoresorother7ElevenfranchiseesmaynotberequiredtopayanAdvertisingFee,andyouagreetopaythe
AdvertisingFeenotwithstandingthepaymentbyother7ElevenfranchiseesorcompanyoperatedStoresofgreater,lesserornoAdvertisingFees.
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(6)WeagreetoadviseyouannuallyofAdvertisingFeereceiptsandouradvertisingexpenditures,includinginwhatmarketsthesums
werespentandthetypeofadvertisingdone,allintheformandmannerwhichwedetermineinoursolediscretiontobeappropriate.Wearenotrequiredto
auditthereceiptsandexpendituresoftheAdvertisingFeesoranyportionthereof.Wewillannuallyadviseyouofthetotalamountofouradvertising
expendituresthatareallocatedtotheCompanyoperatedstores.
(b)LocalAdvertising/AdvertisingApproval.InadditiontoyourpaymentoftheAdvertisingFee,youmayengageinanylocalprint,radioor
televisionadvertisingyouwishifthatadvertisingaccuratelyportraystheServiceMark,theRelatedTrademarksand/orthe7ElevenSystem,doesnot
jeopardizethe7ElevenImage,pertainsonlytotheoperationofyourStore,isincompliancewithallapplicablelaws,anddoesnotbreachanyagreement
bindingonyouorus.However,youagreetoobtainourwrittenapprovalbeforeengaginginanyadvertisingordisplayoftheServiceMarkortheRelated
Trademarksiftheproposedadvertisingmaterialshavenotbeenpreparedbyusorpreviouslyapprovedbyusduringthetwelve(12)monthperiod
precedingtheirproposeduse.Youagreetosubmitanyunapprovedadvertisingmaterialstous,andweagreetoapproveordisapprovesuchmaterialswithin
areasonabletimeofourreceiptofthematerials.YoumaynotuseanyunapprovedadvertisingmaterialsthatdisplayServiceMarkortheRelated
Trademarks.Youagreetopromptlydiscontinuetheuseofanyadvertisingmaterials,whetherornotwehavepreviouslyapprovedthem,uponnoticefrom
us.OuradvertisingapprovalprocedureissetforthintheOnLineSystemSupportGuide.
(c)InternetPromotion.WeexpresslyreservetherighttopromoteanddisplayallformsoftheServiceMarkandRelatedTrademarks,the7
ElevenSystem,andthe7ElevenImagebyuseoftheInternet.Youmaynot:(i)engageinanyadvertisingordisplayoftheServiceMarkorRelated
Trademarksor(ii)marketorpromoteanyproductsormerchandisesoldin7ElevenStoresorcontaining,bearing,orassociatedwiththeServiceMarkor
RelatedTrademarksbyuseoftheInternet,Internetwebsites,email,mailorder,orsimilarmeans,whichallowsforthedisplay,marketing,orsaleofanysuch
productsormerchandiseotherthanbysalethroughtheStore.
(d)FoodservicePromotion.YouagreetoproperlyutilizetheFoodservicepointofsalesupportandlayoutswedesignateinaccordancewith
thedesignoftheFoodserviceFacilitythatdonotcontainpreprintedprices.Wemay,atouroption,addtoorchangethesignsintheFoodserviceFacility
atanytime.
23.ServiceMarkandRelatedTrademarks.
(a)RighttoUsetheMarks.WegrantyoutherighttousetheServiceMarkandRelatedTrademarksduringtheTermofthisAgreementin
accordancewiththisAgreementandourstandardsandspecifications.(TheServiceMarkandRelatedTrademarksarecollectivelyreferredtointhis
Paragraph23astheMarks.)
(b)AgreementsRegardingtheMarks.Youagree:
(1)Thatasbetweenusandyou,wearetheownerofallright,titleandinterestinandtotheMarksandthegoodwillassociatedwithand
symbolizedbythem.
(2)NottotakeanyactionthatwouldprejudiceorinterferewithourrightsinandtotheMarks.NothinginthisAgreementwillgive
youanyright,title,orinterestinortoanyoftheMarks,excepttherighttousetheMarksinaccordancewiththetermsandconditionsofthisAgreement.
(3)ThatallgoodwillarisingfromyouruseoftheMarkswillinuresolelyandexclusivelytoourbenefit,anduponexpirationor
terminationofthisAgreementandthelicense
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grantedherein,nomonetaryamountwillbeattributabletoyouforanygoodwillassociatedwithyouruseoftheMarks.
(4)Nottodirectly,orbyassistinganother,challengeorcontestourownershipoforrightsinorthevalidityorenforceabilityofthe
Marks,anylicensegrantedunderthisAgreement,oranyTradeSecret,copyrightinanywork,orcopyrightedworksthatweown,useorlicense.
(5)ThatanyunauthorizeduseoftheMarkswillconstituteaninfringementofourrightsintheMarks.Youagreetoprovideuswithall
assignments,affidavits,documents,informationandassistancerelatedtotheMarksthatwereasonablyrequest,includingallsuchinstrumentsnecessaryto
register,maintain,enforceandfullyvestourrightsintheMarks.
(6)Thatwewillhavetherighttosubstitutedifferenttradenames,trademarks,servicemarks,logosandcommercialsymbolsforthe
currentMarkstouseinidentifyingthe7ElevenSystemand7ElevenStores,servicesandproducts.Insuchevent,wemayrequireyoutodiscontinueor
modifyyouruseofanyoftheMarksortouseoneormoreadditionalorsubstitutemarks.Wewillpaythecostsrelatedtosuchdiscontinuation,
modification,orsubstitutionoftheMarksprovided,however,thatyouwillberesponsibleforallcostsassociatedwithchangingletterhead,businesscards
orotherbusinessrelateditemsandpermittedtrademarkeditemsandalltrademarkedsuppliesandtrademarkedmerchandise.
(c)UseoftheMarks.Youfurtheragreeto:
(1)OperateandadvertisetheStoreonlyunderthename7Eleven,withoutprefixorsuffix,unlessotherwiseauthorizedorrequiredby
usinwriting.
(2)NotusetheMarksaspartofanycorporate,legalorothername.
(3)NotusetheMarkstoincuranyobligationorindebtednessonbehalfofus.
(4)NotuseanyMarksexceptasexpresslyauthorizedinthisAgreement.
(5)Complywithourinstructionsinfilingandmaintainingrequisitetradenameorfictitiousnameregistrations,andexecuteany
documentsdeemednecessarybyusorourcounseltoobtainprotectionoftheMarksortomaintaintheircontinuedvalidityandenforceability.
(d)CertainProhibitedConduct.InadditiontootherprohibitionsinthisAgreement,youmaynot,atanytime:
(1)use,exceptaspermittedbythisAgreement,theServiceMark,anyothertradeindicia,thatweownorlicense,includingtheRelated
Trademarks,thegoodwillrepresentedbyanyofthem,the7ElevenSystem,theTradeSecrets,anyAdvertisingMaterialsorProgramsthatweown,useor
license,orclaimanyrighttoanyofthem,exceptarighttousethemthatisexpresslygrantedbythetermsofthisAgreement
(2)useanyworkofauthorshipwhichissubstantiallysimilartoaworksubjecttoacopyrightweownorlicense
(3)make,supportorhelpanothertomakeuseofanyname,trademark,servicemark,tradedressorothervisualoraudiblematerial
whichisnotexpresslypermittedbythisAgreementandcomprisesinpartthenumeral7orthetermelevenorisotherwiselikelytocauseconfusion
with
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ordilutethedistinctivenessoftheServiceMarkoranyothertradeindicia,includingtheRelatedTrademarks,thatweownorlicenseor
(4)commitanyotheractwhichmayadverselyaffectorbedetrimentaltous,other7Elevenfranchisees,oranyofourrightsinortothe
ServiceMark,othertradeindicia,includingtheRelatedTrademarks,oranycopyrightorTradeSecretthatweownorlicense,the7ElevenImage,orthe7
ElevenSystem.
YouacknowledgethatanybreachofanyofthetermsofthecovenantscontainedinParagraph23(d)(1)through(4)willresultinirreparableinjuryto
usandthatweareentitledtoinjunctiverelieftopreventanysuchbreach.
(e)InfringementandDilution.Youagreetonotifyusimmediatelyofanyapparentinfringementordilutionoforchallengetoouruseofor
rightsinanyMarkbyanyperson.Youagreenottocommunicatewithanypersonotherthanusorourcounselandyourcounselinconnectionwithany
suchapparentinfringement,dilution,challengeorclaim.Wewillhavecompletediscretiontotakeanyactionwedeemappropriateinconnectionwithany
infringementordilutionof,orchallengeorclaimto,anyMarkandtherighttocontrolexclusively,ortodelegatecontrolof,anysettlement,litigation,
PatentandTrademarkOfficeproceedingorotherproceedingarisingoutofanysuchallegedinfringement,dilutionorchallengeorclaim,orotherwise
relatingtoanyMark.Youagreetoexecuteallsuchinstrumentsanddocuments,rendersuchassistance,anddosuchactsorthingsasmay,inouropinion,
reasonablybenecessaryoradvisabletoprotectandmaintainourinterestsintheMarks.
(f)DomainNamesUseofInternet.
(1)Youacknowledgethatwearethelawful,rightfulandsoleowneroftheInternetdomainnameswww.7Eleven.comandwww.7
11.comandanyotherInternetdomainnamesregisteredbyus.Youunconditionallydisclaimanyownershipinterestinsuchdomainnamesoranysimilar
Internetdomainnames.YouagreenottoregisterortouseanyInternetdomainnameinanyclassorcategory,oranyotherURL,thatcontainswordsand/or
numbersusedinorsimilartothoseusedintheServiceMarkoranyRelatedTrademark,oranyabbreviation,acronym,phoneticvariationorvisual
variationofthosewordsand/ornumbers.Youwillassigntousanysuchdomainname(s)youownontheEffectiveDate.
(2)YouagreenottoestablishanInternetwebsitethatdisplaystheMarksorrelatesorreferstotheStorewithoutourpriorwritten
approvalandourgrantofalicensetousetheMarksonsuchwebsite.
24.RenewalofFranchise.OntheExpirationDateofthisAgreement,youmay,atyouroption,renewyourrightsunderthisAgreementforone(1)
termequaltothenumberofyearsoftheinitialtermprovidedforinourthencurrentStoreFranchiseAgreement,ifallofthefollowingconditionshavebeen
met:
(a)
Yougiveuswrittennoticeofyourelectiontorenewnotlessthannine(9)monthsormorethantwelve(12)monthsbeforetheExpirationDate.
(b)
We,inoursolejudgment,decidetokeeptheStoreopenasa7ElevenStore.
(c)
ThelawpermitstherenewalofyourfranchiseandthecontinuedoperationoftheStore.
(d)
Wedetermine,inoursolejudgment,thatyourStoreisincompliancewiththe7ElevenFoodserviceStandards.
(e)
YouarenotinMaterialBreachofthisAgreement,andyouarecurrentonallamountsyouowetousasoftheExpirationDate.
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(f)
YouhavemaintainedtheMinimumNetWorthrequiredbyParagraph13(d)throughouttheone(1)yearperiodimmediatelyprecedingthe
ExpirationDate.
(g)
YousignanddelivertousourthencurrentformofStoreFranchiseAgreementforfranchiserenewals,whichagreementshallsupersedethis
Agreementinallrespects,andthetermsofwhichmaydifferfromthetermsofthisAgreement,andamutualterminationofthisAgreementand
generalreleaseofclaims,inaformsubstantiallysimilartoExhibitHtothisAgreement.Youwillnotberequiredtopayaninitialorrenewalfee
inconnectionwiththerenewalofthefranchise.
(h)
Wehavenotsentyoufour(4)ormorenoticesofMaterialBreachofthisAgreementduringthetwo(2)yearperiodimmediatelyprecedingthe
ExpirationDate.
(i)
Youhavecompletedanyadditionaltrainingwerequire.WeagreetopaythereasonablecostsassociatedwiththetrainingspecifiedinExhibit
DtothisAgreement.
If,atthetimeofrenewal,wearenotoffering,orattemptingtocomplywithregulatoryrequirementssothatwecanoffer,aStoreFranchiseAgreement,
then,ifapplicablelawpermitsandiftherequirementsforrenewalareotherwisesatisfied,weagreetorenewyourfranchiseonthetermsandconditionsof
thisAgreement,andyouwillnotberequiredtoexecuteanewStoreFranchiseAgreement.
25.Assignment.
(a)AssignmentbyUs.WewillhavetherighttotransferorassignthisAgreementandalloranypartofourrightsorobligationshereintoany
personorlegalentitywithoutyourconsent,anduponsuchtransferorassignment,thetransfereeorassigneewillbesolelyresponsibleforallour
obligationsarisingunderthisAgreementsubsequenttothetransferorassignment.Withoutlimitationoftheforegoing,wemaysellourassetstoathird
partymayofferoursecuritiesprivatelyorpubliclymaymergewithoracquireothercorporations,ormaybeacquiredbyanothercorporationormay
undertakearefinancing,recapitalization,leveragedbuyoutorothereconomicorfinancialrestructuring.
(b)AssignmentbyYou.
(1)NeitheryourinterestunderthisAgreementnorall,orsubstantiallyall,oftheCollateralmaybetransferredorassignedinanyway,
partiallyorcompletely,withoutourpriorwrittenconsent.Withoutlimitationoftheforegoing,youmaynot(a)assigntheLeaseortransferaninterestinall
orsubstantiallyalloftheCollateralwithoutassigningtheentireAgreementinaccordancewiththisSection25(b)or(b)subleasealloranyportionofthe
Storeor7ElevenEquipment.Wemayconditionourconsentonthesatisfactionofallofthefollowingconditions:
(i)Youauthorizeustoprovidethetransfereewith,andthetransfereeexecutes,adisclosureformcontainingawaiveranda
releasebythetransfereeofanyclaimagainstusforanyamountpaidtoyouorrepresentationmadebyyou
(ii)Youauthorizeustoprovidethetransfereewithalistofall7Elevenstoresavailableforfranchiseinthedivisionorgeneral
areawheretheStoreislocated
(iii)Youexecute,atouroption,amutualterminationofthisAgreementandgeneralreleaseofclaims(inaformsimilarinall
materialrespectstoExhibitH)oranassignmentofthisAgreementandgeneralreleaseofclaims(inaformsimilarinallmaterialrespectstoExhibitH)and
anindemnityforanyclaimbythetransfereeinanywayarisingoutoforrelatedtothetransferandarrangementsorcommunicationsbetweenyouandthe
transferee
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(iv)YoupayallamountsdueusorourAffiliatesinfullandmakearrangementssatisfactorytousforthepaymentofallamounts
whichmaybecomedueupondeliveryoffinalFinancialSummaries,including,atouroption,thepaymentintotheOpenAccountofallpremiummonies
youwillreceiveforthefranchiseand
(v)ThisAgreementhasnotbeenterminatedandnoterminationispendingandyouarenotinMaterialBreachofthisAgreement.
(2)Wewillapproveordisapproveaproposedtransfereeorassigneefortrainingwithinsixty(60)daysafterwehavereceivedall
informationregardingtheproposedtransactionthatwereasonablyrequire.Ifapproved,thetransfereemust,atouroption,executeeitherthethencurrent
formof7ElevenStoreFranchiseAgreementoranassumptionofthisAgreement(ineithercaseprovidingforthethencurrentfinancialterms,includingthe
DownPayment,7ElevenCharge,FranchiseFeeandallothercurrentterms),completethethenrequiredtraining,andbeotherwisedeterminedinoursole
opiniontomeetallqualificationstobecomea7Elevenfranchisee,includingthosegeneralqualificationssetforthinthethencurrentOnLineSystems
SupportGuide.
(3)YouandyourproposedtransfereemusthavemetalloftheconditionssetforthinthisParagraph25(b)thatwerequireinorderto
obtainourfinalapprovaloftheproposedtransferorassignment.AfteryoutransferorassignyourinterestunderthisAgreementandtheCollateral,youwill
havenofurtherright,claimorinterestinortothefranchise,theStore,oranyassetsusedoracquiredinconjunctionwiththem.
(4)Youmaynotgrantasecurityinterestin,orotherwiseencumber,thisAgreementortheCollateral.
(c)OurRightofFirstRefusal.IfyouwishtotransferorassignanyinterestinthisAgreementpursuanttoanybonafideofferreceivedfroma
thirdpartytopurchasesuchinterest,thenyouagreetopromptlynotifyusinwritingoftheoffer,andmustprovidesuchinformationanddocumentation
relatingtotheofferaswemayrequire.Weorourdesigneewillhavetherightandoption,exercisablewithinten(10)BusinessDaysafterreceiptofsuch
writtennotificationandcopiesofallrequireddocumentationdescribingthetermsoftheoffer,tosendwrittennoticetoyouthatweorourdesigneeintend
topurchasetheinterestonthetermsandconditionsofferedbythethirdpartyasstatedinthenotice.Ifweorourdesigneeelecttopurchasetheinterest,
closingmustoccuronorbeforeten(10)BusinessDaysfromthedateofourorourdesigneesnoticetoyouofourorourdesigneeselectiontopurchaseor
anyotherdateagreedbythepartiesinwriting.Ifthethirdpartyofferprovidesforpaymentofconsiderationotherthancash,weorourdesigneemayelect
topurchasetheinterestforthereasonablecashequivalent.Amaterialchangeinthetermsofanyofferpriortoourprovidingyounoticeofourintentto
exerciseourrighttopurchasetheinterestwillconstituteanewoffersubjecttothesamerightoffirstrefusalasaninitialoffer.
26.Termination.
(a)TerminationbyUs.WemayterminatethisAgreement(subjecttoyourrighttocurewherestatedbelow)fortheoccurrenceofanyone(1)or
moreofthefollowingevents(eachofwhichyouacknowledgeisaMaterialBreachandconstitutesgoodcausefortermination):
(1)Uponfortyfive(45)calendardaysnoticetoyou,subjecttoyourrighttocureduringsuchfortyfive(45)calendardayperiod,
if:
(a)youdonotoperatetheStoreasa24HourOperationorforadifferentnumberofhoursofoperationwhichwehaveagreedto
inwritingbeforethereductioninhoursof
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operation,unlessthereduction(1)istheresultofgovernmentalregulationand(2)isnotdirectlyorindirectlycausedbyyouractsoromissions
(b)youdonotcomplywithanyagreementtowhichyouandweorourAffiliateareapartyorwithamasterleasepertainingto
theStoreor7ElevenEquipmentifacopyofthepertinentprovisionsofsuchagreementorleasehasbeenprovidedtoyou,orwiththeusualandnormal
termsofanyleasetransactionwemayenterintowithrespecttotheStoreor7ElevenEquipment
(c)youdonotusetheStoreor7ElevenEquipmentsolelyinconnectionwithyouroperationoftheStoreunderthe7Eleven
System
(d)youdonotproperlymaintaintheStoreand7ElevenEquipment
(e)youdonotobtainouradvancewrittenconsentformakinganyadditionstotheStoreor7ElevenEquipmentordiscontinuing
usinganyofthe7ElevenEquipment
(f)youdonotremitinsuranceproceedstouswhicharedueandowingtousunderthetermsofthisAgreement
(g)youdonotindemnifyusasrequiredunderParagraph18
(h)youdonotcomplywithanyprovisionsofParagraph31(f),exceptifyouencumber,transferorassignanyownershipinthe
franchiseinviolationofParagraph25,forwhichwemayterminatethisAgreementonthirty(30)calendardaysnoticewithoutanopportunitytocure
pursuanttoParagraph26(a)(3)(b)or
(2)Uponthirty(30)calendardaysnoticetoyou,subjecttoyourrighttocureduringsuchthirty(30)calendardayperiod,if:
(a)youimproperlyuseorjeopardize(throughadvertisingorotherwise)theStore,theServiceMark,theRelatedTrademarks(or
thegoodwillrepresentedbyanyofthem),copyrightsoradvertisingownedorlicensedbyus,the7ElevenSystem,orthe7ElevenImage
(b)youofferorsellanyProprietaryProductorotherproductbearingtheServiceMarkoranyoftheRelatedTrademarksthatyou
havepurchasedfromasourcenotauthorizedtoproduceoroffersuchproducts,andyouhavedulyreportedyourpurchaseofsuchproduct(s)tous
(c)youdonotpayinatimelymanneranytaxesordebtswithrespecttotheStoreor7ElevenEquipmentwhichyouare
obligatedtopay,orataxlienisimposedonyouwhichaffectstheStore,solongassuchfailuretopayortheimpositionofsuchtaxlienisnotcausedbyus
(d)youdonotmaintainworkerscompensationcoverageasrequiredbyParagraph18
(e)youfailtocomplywithParagraph15regardingthemerchandisingandInventory,ProprietaryProducts,productpackaging
anddisplay,nationallyandregionallypromotedandexclusiveproducts,retailsellingprices,anddesignatedservicevendors
(f)youdonotcomplywiththe7ElevenFoodserviceStandardsthatweestablishfromtimetotime(includingtherequirementto
wearuniforms),exceptforyourfailuretocomplywithany7ElevenFoodserviceStandardsfortheFoodserviceFacility,withrespecttowhichwe
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mayterminatethisAgreementonthree(3)calendardaysnoticeandopportunitytocurepursuanttoParagraph26(a)(6)below
(g)youdonotnotifyusinanaccurateandtimelymannerofdiscounts,allowancesorpremiumsyoureceiveorofyourretail
sellingprices
(h)youdonotobtainormaintainalllicenses,permits,orbondsnecessary,inouropinion,foryouroperationoftheStore,solong
assuchfailuretoobtainormaintainthelicenses,permits,orbondsisnotcausedbyus
(i)youviolateorfailtocomplywithanyapplicablelaw,rule,regulation,ordinanceororderrelatingtotheoperationofthe
Store,includingthoserelatingtothesaleofalcoholicbeverages
(j)theunpaidbalanceintheOpenAccountbecomesimmediatelydueandpayable,butyoudonotrepayourloantoyouin
accordancewiththisAgreement
(k)youfailtocomplywithParagraph12(f)regardingtheuseofthe7ElevenStoreInformationSystemanddata
(l)youdonotproviderecordsorreportswerequire,asprovidedherein,ordonotcooperatewithusinobtaininginformation
fromanyofyourvendorsorstateagencies,exceptforyourfailuretoprovidetherecordsandreportslistedinParagraph26(a)(4)(b)belowforwhichwemay
terminateonthree(3)BusinessDaysnoticeandopportunitytocureor
(m)exceptasprovidedinParagraphs26(a)(1),(3),(4),(5),or(6),youotherwisecommitadefaultunderthisAgreementwhichis
susceptibleofbeingcuredoradefaultunderanyamendmentwhichiscapableofbeingcuredandforwhichtheamendmentdoesnotspecifyanoticeand
cureprovision.
(3)Uponthirty(30)calendardaysnoticetoyou,andwithnorighttocure,if:
(a)avoluntaryorinvoluntarypetitioninbankruptcyisfiledbyoragainstyou,youmakeanassignmentforthebenefitof
creditors,orareceiverortrusteeisappointed
(b)youattempttoencumber,transferorassignanyinterestunderthisAgreementortheassetsofthefranchisedbusinessin
violationofParagraph25
(c)youareconvictedof,orpleadnolocontendereto,afelonynotinvolvingmoralturpitude
(d)youdonotmaintainanindependentcontractorrelationshipwithus
(e)youofferorsellanyProprietaryProductorotherproductbearingtheServiceMarkoranyoftheRelatedTrademarkswhich
youhaveobtainedfromasourcenotauthorizedtoproduceoroffersuchproducts,andyouhavenotdulyreportedyourpurchaseofsuchproduct(s)tous
or
(f)youmisrepresent,misstate,orfailoromittoprovidematerialinformationrequiredasapartofthequalificationprocess.
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(4)Uponthree(3)BusinessDaysnoticetoyou,subjecttoyourrighttocureduringsuchthree(3)BusinessDayperiod,if:
(a)yourNetWorthislessthantheMinimumNetWorthrequiredbyParagraph13(d)
(b)youdonotproperlyrecord,deposit,deliver,orexpendandreportReceiptsordeliverdepositslips,cashreports,andall
supportingdocuments,receiptsforcashPurchases,andinvoicesorotherreportsofPurchasesasrequiredbyParagraph12or
(c)duringthetimesinwhichyouarerequiredtobeopen,youdonotpermitanyAuditprovidedforinParagraph14oryoudeny
accesstoanypartoftheStore,7ElevenEquipment,Inventory,Receipts,CashRegisterFund,cashregisterreceiptsorreadings,amusementmachine,
bankingandotherequipmentreadings,moneyorderblanks,bankdrafts,orStoresupplies.
(5)Uponthree(3)BusinessDaysnoticetoyou,andwithnorighttocure,if:
(a)youvacate,desertorotherwiseabandontheStore(and,immediatelyafterwedeterminethatyouhaveabandonedtheStore,
wemaytakepossessionoftheStorepursuanttotheprovisionsofParagraph26(f),operatetheStoreforyourbenefitduringsuchnoticeperiod,andcharge
yourOpenAccountforOperatingExpensesandothercoststhatweincurinconnectionwiththeoperationoftheStoreonyourbehalf)
(b)youareconvictedof,orpleadnolocontendereto,anychargewhichinvolvesmoralturpitude
(c)youdiscloseConfidentialInformationinviolationofParagraph5(provided,however,thatwewillnotdeemyouinMaterial
BreachofthisAgreementasaresultofisolatedincidentsofdisclosureofConfidentialInformationbyoneofyouremployeesifyouhavetakenreasonable
stepstopreventsuchdisclosure,includingthestepsareasonableandprudentownerofconfidentialandproprietaryinformationwouldtaketoprevent
disclosureofsuchinformationbyitsemployees,andfurtherprovidedthatyoupursueallreasonablelegalandequitableremediesagainstsuchemployee
forsuchdisclosureofsuchConfidentialInformation)or
(6)Uponthree(3)calendardaysnoticetoyou,subjecttoyourrighttocureduringsuchthree(3)calendardayperiod,ifyoufailto
complywithanyofthe7ElevenFoodserviceStandardsrelatedtoFoodserviceFacilitiesoryoufailtoallowaqualityassuranceinspectorintotheStore
whenrequested.
(7)Immediatelyuponnoticetoyouwithnorighttocure,ifyouviolateanyoftheAntiTerrorismLaws.
(8)Uponfortyfive(45)calendardaysnoticetoyouandwithnorighttocure,ifaprovisionofthisAgreement(includingallorany
partofParagraphs15,16,or22),whichwe,inoursolediscretion,determinetobematerial,isdeclaredinvalidbyacourtofcompetentjurisdiction,asset
forthinParagraph31(e).
(b)CuringBreachesMultipleDefaults.IfaMaterialBreachiscurable,asspecifiedabove,andifyouhavenotpreviouslybeenservedwith
three(3)separatenoticesofMaterialBreachwithinthetwo(2)yearspriortotheoccurrenceofafourth(4 th)MaterialBreach,youshallhavetherightto
cureanyMaterialBreachsetforthabovepriortotheexpirationofthenoticeperiodforthatMaterialBreach(orsuchotherperiodasmaybeimposedby
laworbyanyagreementtowhichweareaparty),by
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takingsuchactions(orallowingustotakesuchactionsonyourbehalf)aswemayreasonablydeterminetobenecessarytorestoreustosubstantiallythe
sameconditionwewouldhaveheldbutforyourbreach.WewillnotuseanynoticeofMaterialBreachasabasisforterminatingthisAgreementif:(i)such
noticeofMaterialBreachhasbeendeterminedbyacourtnottohavebeenvalidlyissued,or(ii)ifweagreethatsuchnoticeofMaterialBreachwasnot
validlyissued.
Ifyouhavebeenservedwiththree(3)separatenoticesofanyMaterialBreachwithinthetwo(2)yearsbeforeafourth(4 th)MaterialBreach,we
mayterminatethisAgreementimmediatelyuponnoticetoyouofthefourth(4 th)MaterialBreachinsuchtwo(2)yearperiodwithoutanyopportunityto
cure,whetherornotsuchMaterialBreachesareofthesameordifferentnatureandwhetherornotsuchMaterialBreacheshavebeencuredbyyouafter
noticebyus.Followingthefifth(5 th)anniversaryofournoticetoyouofanyMaterialBreach,suchMaterialBreachwillnotbeusedasabasisfor
terminationunderthisParagraph26(b),providedthatsuchMaterialBreachhasbeencured.
(c)TerminationonDeathorIncapacitation.WemayterminatethisAgreementuponthirty(30)daysnotice(orsuchlongerperiodthatwemay
determineorasrequiredbyapplicablelaw)ifyoudieorbecomeincapacitated.However,ifyouaremorethanone(1)individualandonlyone(1)
individualdiesorbecomesincapacitated,wemay,atouroption,(1)continuethisAgreementwiththesurvivorornonincapacitatedindividualor(2)
requirethesurvivorornonincapacitatedindividualtoexecuteourthencurrentformofStoreFranchiseAgreement,whichcontainsthesamefinancial
termsasthisAgreement,fortheremainderoftheTermofthisAgreement.
(d)MarketWithdrawal.WemayterminatethisAgreementuponnotlessthanthirty(30)daysWithdrawalNotice(orsuchlongertimethatwe
determineorasrequiredbyapplicablelaw),ifwedetermine,ingoodfaithandinanormalcourseofbusiness,toceasetheoperationofall7ElevenStores
intherelevantgeographicmarketarea(beingthestateormetropolitanstatisticalarea(MSA)orsimilardesignationasperiodicallyestablishedbythe
OfficeofManagementandBudgetoranyreplacementgovernmentaloffice),orinageographicallyseparateareaoutsideofaMSAinwhichtheStoreis
located.Youacknowledgethatsuchdeterminationandactionwillbegoodcausefortermination.Intheeventofasale,transferorassignmentofallof
ourrightintheStoresinthearea,oradecisionbyustoclosetheStoresinyourarea,youwillhavetherightoffirstrefusal,orofpurchase,asthecasemay
be,tobeexercisedwithinthefirstten(10)daysafteryoureceivetheWithdrawalNotice,toacquireandreceiveassignmentofallofournonproprietary
rightsinandtotheStore,theequipment(specificallyexcluding,withoutlimitation,the7ElevenStoreInformationSystem)andrealproperty.Suchright
willbeexercisableuponthesametermsasagreeduponbetweenusandabonafidethirdpartytransferee,orintheabsenceofsuchanagreement,ata
purchasepricedeterminedbyanappraiserappointedbyusandupontermsacceptabletous.Ifthepurchasepriceistobedeterminedbyanappraiser
appointedbyus,thedecisionoftheappraiserwillbefinal.Allcostsofappraisalwillbesharedequallybyyouandus.ThisParagraph26(d)doesnotapply
ifouragreementtosell,transferorassigntoathirdpartyourrightsintheStore(s)inyourareaand/ortheFranchiseAgreement(s)relatedtosuchStore(s)
contemplatesthattheStore(s)willcontinuetobeoperatedas7ElevenStores.
(e)TransferandRefundRights.
(1)InadditiontotheothergroundsforterminationsetforthinthisAgreement,thisAgreementwillterminatebeforetheExpiration
Date:
(a)thirty(30)daysbeforethelossofourLeaseholdRights
(b)ifthereisacondemnation(ortransferinsteadofcondemnation)whichresultsinourdecisiontodiscontinueoperationsofthe
Storeasa7ElevenStore
(c)ifthereiscasualtydamagetotheStoreor7ElevenEquipmentwhichwedeterminecannotreasonablyberepairedorreplaced
withinthirty(30)daysor
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(d)theStorepermanentlyclosesbecauseapplicablelawrequirespermanentclosureoftheStore,providedthattherequired
closureisnottheresultofouroryouractsoromissions.
IfthisAgreementisterminatedpursuanttothisParagraph26(e),thenforonehundredeighty(180)daysfollowingthedateofsuchtermination,youwill
havetherighttochooseeithertotransfertoanother7ElevenStoreavailableasafranchise(aTransfer)ortoreceivearefundofaportionoftheFranchise
Feepaidbyyou(aRefund),onthetermsandconditionsstatedbelow,butyouwillnothavetherighttobothaRefundandaTransfer.If,uponthe
expirationofsuchonehundredeightyday(180)dayperiod,youhavenotelectedtoTransferasprovidedbelow,youwillbedeemedtohaveelectedto
receivetheRefund.
(2)InordertoelecttoTransfer,youagreetoeithersignthethencurrent7ElevenStoreFranchiseAgreementforthenewStoreor
completeaTransferElectionForm.IfyouelecttoTransfer,andyoumeettheconditionssetforthbelow,theTransferwillbecompletedwithina
reasonabletimeafteryouelecttoTransfer,butinnoeventlaterthansix(6)monthsafteryouelecttoTransfer.IfyouareotherwiseeligibleforaTransfer,
youalsoagreetomeetallofthefollowingconditions:
(a)youarenotsellingorassigningyourinterestintheStoreortransferringyourinteresttoathirdpartypursuanttoParagraph
25
(b)youarenotinMaterialBreachofthisAgreementatthetimeofyourelectiontoTransfer
(c)youhavehadaNetWorthinanamountgreaterthanorequaltotheMinimumNetWorthrequiredbyParagraph13(d)forthe
one(1)yearimmediatelybeforeyourelection
(d)youexecuteanddelivertousthethencurrent7ElevenStoreFranchiseAgreementavailablefor7ElevenStoresinthearea
inwhichtheStoretowhichyouwishtoTransferislocatedandamutualterminationofthisAgreementandgeneralreleaseofclaims,inaformsubstantially
similarinallmaterialrespectstoExhibitH.YouwillnotberequiredtopayaFranchiseFeeunderthenewStoreFranchiseAgreementthatyouexecute,and
thetermofsuchnewStoreFranchiseAgreementwillbeequaltothetermthenremainingunderthisAgreement
(e)youhavenotbeenservedwithfour(4)ormorenoticesofMaterialBreachwithinthetwo(2)yearsbeforeyourelectionand
(f)youcompleteanyadditionaltrainingwerequest,butweagreetobearthecostsforthetrainingasprovidedinExhibitD.
IfyouhavesatisfiedtheseconditionsandyouchooseaTransfer,thentheTransfermaybetoany7ElevenStoreyouselect(i)whichisavailablefor
franchise,(ii)whichhasbeenopenforbusinessasa7ElevenStoreforatleasttwelve(12)months,and(iii)forwhichyoumeetourthencurrent
qualificationsaswedetermineinoursolediscretion.Wewillnotberesponsibleforyourmovingorrelocationexpensesoranypremiumamount,brokers
feeoranyotherpaymenttoathirdpartyarisinginconnectionwiththeTransfer.
(3)IfyouelecttheRefund,theRefundwillbecalculatedbydeductingtwentythousanddollars($20,000)fromtheFranchiseFeeyou
paidwhenyousignedthisAgreementdividingtheremainderthereofbyonehundredeighty(180)andmultiplyingtheresultbythenumberofcalendar
monthsfromthefirstdayofthenextmonthfollowingthedateyounotifyusofyourelectiontoreceivetheRefundthroughthemonthofthescheduled
ExpirationDate.IfyouareotherwiseeligibleforaRefund,youalsoagreetomeetallthefollowingconditions:
(a)youarenotsellingorassigningyourinterestintheStoreforapremium,ortransferringyourinteresttoathirdpartypursuant
toParagraph25
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(b)youarenotinMaterialBreachofthisAgreementatthetimeyouelecttoreceivetheRefund
(c)youhavehadaNetWorthinanamountgreaterthanorequaltotheMinimumNetWorthrequiredbyParagraph13(d)forthe
one(1)yearimmediatelybeforeyourelectionand
(d)youexecuteanddelivertousamutualterminationofthisAgreementandgeneralreleaseofclaims,inaformsubstantially
similarinallmaterialrespectstoExhibitHand(E)youhavenotbeenservedwithfour(4)ormorenoticesofMaterialBreachwithinthetwo(2)years
beforeyourelection.
(4)YouwillnothavetherighttoaTransferorRefundif(i)weterminatethisAgreementforcause(ii)youvoluntarilyterminatethis
Agreement(iii)therehasbeenacondemnationwhichresultsinourdecidingtodiscontinue7ElevenoperationsattheStoreandifyoureceivedany
portionofacondemnationawardasprovidedinParagraph8(d)or(iv)ourLeaseholdRightsexpireandarenotrenewedorotherwiseextended,orifour
LeaseholdRightsareterminated,asaresultofyouroryouremployeesactsoromissions.
(5)YouagreethatifoneoftheeventsgivingyoutherighttoelectaTransferorRefundoccurs,youwillhavenorighttoreceiveany
damagesfromus,andtheTransferorRefundwillbeyouronlyremedy.
(f)OurRighttoAssumeOperationoftheStore.WemayentertheStorepremisesandtakepossessionoftheStore,7ElevenEquipment,
Inventory,Receipts,CashRegisterFund,moneyorderblanks,bankdraftsandStoresuppliesandcontinuetheoperationoftheStoreforyour(oryourheirs
orlegalrepresentatives)benefitandaccountpendingtheexpirationorterminationofthisAgreementorresolutionofanydisputeunderthisAgreementif:
(1)theStoreisnotopenforoperationasprovidedinExhibitD(2)youdieorbecomeincapacitated,exceptasotherwiseprovidedinExhibitF
(Survivorship)or,(3)inouropinion,adivorce,dissolutionofmarriage,orfelonyproceedinginwhichyouareinvolvedjeopardizestheoperationofthe
Storeorthe7ElevenImage.Onbehalfofyourself,yourheirs,andyourlegalrepresentatives,youherebyconsenttoouroperatingtheStorepursuanttothe
termsofthisParagraph26(f)andagreetoreleaseandindemnifyusfromandagainstanyliabilityarisinginconnectionwithouroperationoftheStore
pursuanttothisParagraph26(f).
27.MutualTerminationTerminationbyYou.
(a)MutualTermination.ThisAgreementmaybeterminatedatanytimebywrittenagreementbetweenyouandus.
(b)TerminationbyYou.
(1)YoumayterminatethisAgreementuponatleastseventytwo(72)hourswrittennoticetous(orshorternotice,ifweacceptit).Ifyou
electtoterminatethisAgreementandprovideuslessthanthirty(30)dayspriorwrittennotice,youagreetopayusaterminationfeeinanamountequalto
twothousandfivehundreddollars($2,500).WehavetherighttodebitsuchterminationfeetoyourOpenAccount.
(2)ProvidedthatyouarenottransferringyourinterestunderthisAgreementtoathirdparty,then,onorbeforetheninetieth(90 th)day
followingtheEffectiveDate,youmayterminatethisAgreementuponten(10)dayspriorwrittennoticetous,and,ifyouexecuteamutualterminationand
generalreleaseacceptabletousandcomplywithallothertermsofthisAgreement,weagreetorefund,withoutinterest,anamountequaltotheFranchise
FeeminusthetrainingexpensesstatedinExhibitDwhichwehavereimbursedyoufororpaidonyourbehalfprovided,however,thatyouarenoteligible
for
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thisterminationrightandrefundoftheFranchiseFeeifyouare(a)apreviousorrenewingfranchisee,(b)afranchiseewhohasa7ElevenStoreFranchise
AgreementwithusotherthanunderthisAgreement,or(c)ourformeremployee.ThisrighttoarefundoftheFranchiseFeeisinnowayrelatedtothe
RefundrightdescribedinParagraph26(e).
28.CloseOutProcedure.
(a)PostExpiration/TerminationObligations.UpontheexpirationorterminationofthisAgreement,allrightsgrantedtoyouhereunderwill
terminateandyouagreeto:
(1)Immediatelyandwithoutanyfurthernotice(unlessfurthernoticeisrequiredbylawandcannotbewaived)peaceablysurrenderthe
Storeand7ElevenEquipment,whichmustbeinthesameconditionaswhenyoufirstreceivedthem,normalwearandtearexcepted.Ifwearerequiredby
lawtoprovideyouanynotice,andsuchnoticemaybewaived,thenyouherebywaiveyourrighttoreceivesuchnotice
(2)Transfertous,or,atouroption,athirdpartytransferee,theFinalInventoryoftheStore.Weorsuchthirdpartytransfereewillpay
youanamountequaltotheCostValueoftheFinalInventoryinaccordancewithParagraph28(b)(2)below.WeagreetopermityoutotransfertheFinal
InventorytoathirdpartytransfereeonlyifallamountsthatyouoweusandourAffiliatesarepaidinfullandyoumakearrangementssatisfactorytousfor
thepaymentofanyamountswhichmaybecomedueupondeliveryoffinalFinancialSummaries.Youagreethatanypropertybelongingtoyouandleftin
theStoreafterthesurrenderandtransferwillbecomeoursoleproperty
(3)TransfertoustheReceipts,CashRegisterFund,prepaidOperatingExpenses,moneyorderblanks,bankdrafts,lotterytickets(if
applicable)andStoresupplies
(4)ImmediatelyceaseusingtheServiceMark,theRelatedTrademarks,andallelementsofthe7ElevenSystem,includingthe
ConfidentialInformationandTradeSecrets
(5)ReturntousanycopyoftheTradeSecretsandConfidentialInformation,includingtheOnLineSystemsSupportGuideandany
manualsweprovidedyou,alongwithallcopiesorduplicatesthereof,allofwhichareacknowledgedtobeoursoleproperty.Ifyoupossessanyofthe
foregoinginelectronicform,youwilldeletesuchmaterialfromyourcomputersandotherstoragedevicesandnotusesuchmaterialandnotretainany
copyorrecordofanyoftheforegoing,exceptyourcopyofthisAgreementandofanycorrespondencebetweenyouandus
(6)ExecuteallnecessarydocumentationtotransferalllicensesandpermitsrelatingtotheStoretousand
(7)Complywithallotherpostexpiration/terminationobligationssetforthinthisAgreement.
(b)SettlementofOpenAccount.Withinthirty(30)daysafteryousurrenderandtransfertheStoreand7ElevenEquipmentinaccordancewith
Paragraph28(a),weagreeto:
(1)CredityourOpenAccountfortheReceipts,CashRegisterFund,prepaidOperatingExpenses,usualandreasonableamountsof
Storesuppliestransferredtous,orathirdpartytransferee,asapplicable
(2)CredityourOpenAccountanamountequaltotheCostValueoftheFinalInventory
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(3)CredityourOpenAccount$100ifyourcopy(andallduplicatecopiesthatyoumaypossess)oftheOnLineSystemsSupportGuide
andotheroperationsmanualsprovidedbyustoyouarereturnedtous
(4)DebityourOpenAccount$200asaclosingfeeand
(5)RemittoyouanyamountbywhichweestimatetheNetWorth(exceptforanyamountdueyouunderParagraph27)willexceedthe
greaterof$15,000or25%ofyourtotalassets(asreflectedonthebalancesheetthatwepreparefortheStorefortheapplicableAccountingPeriod).Wemay
withholdanyadditionalamountsrequiredbybulktransferlawsoranyothersimilarlawsorstateorfederalagencies.
(c)PaymentofIndebtednesstoUsDeliveryofFinalFinancialSummaries.UponterminationorexpirationofthisAgreement,anyunpaid
balanceontheOpenAccountwillbeimmediatelydueandpayableupondemandbyus.Withinonehundredfive(105)daysafterthelastdayofthemonth
inwhichthesurrenderandtransferoftheStoreand7ElevenEquipmentoccurs,weagreetodeliverfinalFinancialSummariestoyou.IfthefinalFinancial
SummariesreflectacreditbalanceintheOpenAccount,weagreetodeliveracheckintheamountofthecreditbalancewiththefinalFinancialSummaries.
IfthefinalFinancialSummariesreflectadebitbalanceintheOpenAccount,youagreetoimmediatelypayusthedebitbalance.Yourendorsementofany
checksentwiththefinalFinancialSummariesorotheracceptanceofthefundstenderedbyusacknowledgesyourreleaseofallclaimsaffectingthefigures
setforthinthefinalFinancialSummaries.
29.Mediation.
WeandyouacknowledgethatduringtheTermofthisAgreementcertaindisputesmayarisebetweenusthatweandyouareunabletoresolve,
butthatmayberesolvablethroughmediation.Tofacilitatesuchresolution,weandyouagreethat,exceptasotherwisespecifiedbelow,ifanydispute
betweenyouanduscannotbesettledthroughnegotiation,thenbeforecommencinglitigationtoresolvethedispute,youandwewillfirstattemptingood
faithtosettlethedisputebynonbindingmediation.Themediationwillbeconductedundertheauspicesandthenprevailingmediationrulesofthe
AmericanArbitrationAssociationoranysuccessororganization(theAAA),unlessyouandweagreetomediateundertheauspicesofanothermediation
organizationorotherrules.Themediationissubjecttothefollowingtermsandconditions:
(a)Unlessotherwiseagreed,themediationwilltakeplaceatamutuallyaccessibleneutrallocationwithinthemarketareainwhich
yourStoreislocated.
(b)YouandweagreetosharethemediatorsfeesandexpensesandthefeeschargedbyAAA(oranyotherorganizationusedforthe
mediation),withtwothirdstobepaidbyusandonethirdbyyou.Eachofusagreestobesolelyresponsibleforanyotherexpensesyouorweincurin
connectionwiththemediation.Youandweagreethatanymediationbetweenyouandus,andanymediationbetweenanyother7Elevenfranchiseeand
us,willbeconfidentialandnondiscoverableandthatstatementsmadebyeithersideinanysuchmediationproceedingwillnotbeadmissibleforany
purposeinasubsequentlegalproceeding,andyouandweagreetoexecutedocumentstoevidencesuchagreement.Unlessotherwisespecifiedbythe
mediationorganizationandagreedtobyyouandus,yourandourobligationstomediatewillbedeemedsatisfiedwhensix(6)hoursofmediationhave
beencompleted(whetherornotwehaveresolvedourdifferences),orthirty(30)daysafterthemediationdemandhasbeenmade,ifeitheryouorwefailto
appearorparticipateingoodfaithinthemediation.
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(c)Notwithstandingtheforegoing,neitheryounorwewillhaveanobligationtomediateanydisputeinvolving(i)theServiceMarkor
theRelatedTrademarks(ii)afailurebyyoutodepositReceiptsasrequiredbythisAgreement(iii)possessionoftheStore,or(iv)anyviolationoflaw
relatingtotheStorewhereyouhaveadmittedtheviolationorajudicialoradministrativebodyhasmadeafindingofaviolation.
(d)Eitheryouorwemayseekatemporaryrestrainingorder,preliminaryinjunctionoranyotherequitablereliefatanytimepriortoor
duringthecourseofadisputeif,inyourorourreasonablebelief,suchreliefisnecessarytoavoidirreparabledamageortopreservethestatusquo.Despite
suchaction,youandweagreetocontinuetoparticipateinthemediationproceedingsspecifiedherein.
(e)ExceptforthejudicialactionsdescribedinParagraphs29(c)and(d),above,neitheryounorwewillinitiatejudicialproceedingsor
arbitrationproceedingsuntilthemediationhasbeencompletedascontemplatedbyParagraph29(b)above.Anyapplicablestatuteoflimitationswillbe
suspendedforthetimeinwhichthemediationprocessispending.
30.GoverningLawJurisdiction.
(a)GOVERNINGLAW.THISAGREEMENTWILLBEGOVERNEDBYANDINTERPRETEDANDCONSTRUEDUNDERTHELAWS
OFTHESTATEINWHICHTHESTOREISLOCATED(EXCEPTFORAPPLICABLECONFLICTOFLAWRULES).
(b)JURISDICTION.WITHRESPECTTOANYCONTROVERSYNOTFINALLYRESOLVEDTHROUGHMEDIATION(AS
DESCRIBEDABOVE),YOUHEREBYIRREVOCABLYSUBMITTOTHEJURISDICTIONOFANYFORUMORCOURT,WHETHERFEDERAL
ORSTATE,WITHINTHEJUDICIALDISTRICTINWHICHTHESTOREISLOCATED.YOUHEREBYWAIVEALLQUESTIONSOF
PERSONALJURISDICTIONFORTHEPURPOSEOFCARRYINGOUTTHISPROVISIONANDAGREETHATSERVICEOFPROCESSMAYBE
MADEUPONYOUINANYPROCEEDINGRELATINGTOORARISINGOUTOFTHISAGREEMENTORTHERELATIONSHIPCREATED
HEREBYBYANYMEANSALLOWEDBYAPPLICABLESTATEORFEDERALLAW.
31.MiscellaneousProvisions.
(a)Nonwaiver.Noactoromissionbyyouorus,oranycustom,courseofdealing,orpracticeatvariancewiththisAgreement,willconstitutea
waiverof(a)anyrightyouorwehaveunderthisAgreementor(b)theotherpartysbreachofthisAgreement,unlessitisawaiverinwriting,signedbythe
partytobeboundasprovidedinParagraph31(g)below.NowaiverbyyouorusofanyrightunderorbreachofthisAgreementwillbeawaiverofany
othersubsequent,preexistingorcontinuingrightorbreach.OuracceptanceofanypaymentyoumaketousafteranybreachofthisAgreement(including
ouracceptanceofthe7ElevenCharge)willnotbeawaiverofthebreach,evenifweknowofthebreachatthetimeweacceptthepayment.Nospecialor
restrictivelegendorendorsementonanycheckorsimilaritemyougivetouswillconstituteawaiver,compromise,settlementoraccordandsatisfaction.
Youauthorizeustoremoveorobliterateanysuchlegendorendorsement,andagreethatsuchlegendorendorsementwillhavenoeffect.
(b)Disclosure.YouherebyconsenttoouruseanddisclosureofanyinformationrelatingtothisAgreementortheStoreorcontainedinthe
BookkeepingRecordstoanyoneprovided,however,thatwewillonlydiscloseyourFinancialSummariesonananonymousbasis,unlesswearelegally
compelledtodisclosethemonanonanonymousbasisbysubpoena,courtorder,orotherwise.
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(c)CircumstancesBeyondaPartysControl.Neitheryounorwewillbeliableindamagestotheotherforanyfailureordelayinperformance
duetoanyactsofterrorism,governmentalactorregulation,war,civilcommotion,earthquake,fire,flood,otherdisasterorsimilarevent,orforanyother
eventbeyondyourorourcontrol,iftheaffectedparty(a)promptlynotifiestheotherofthefailureordelayand(b)takesallreasonablestepstomitigate
damagescausedbysuchfailureordelay.
(d)Notices.
(i)Exceptasotherwiseprovidedherein,anynoticesrequiredtobeprovidedunderthisAgreementmustbeinwritingandmaybe(a)
personallydelivered,or(b)sentbyanexpediteddeliveryservice,or(c)mailedbycertifiedorregisteredmail,returnreceiptrequested,firstclasspostage
prepaid,or(d)sentbyfacsimile,aslongasthesenderconfirmsthefacsimilebysendinganoriginalconfirmationcopyofthenoticebycertifiedor
registeredmailorexpediteddeliveryservicewithinthree(3)BusinessDaysaftertransmission.Ifyousendusawrittenrequesttogivecopiesofyour
noticestosomeoneyoudesignateandincludethenameandaddressofyourdesignee,weagreetosendcopiesofyournoticestoyourdesignee.Ifyouor
yourdesigneecannotbepromptlylocated,weagreetodeliverthenoticetooneofyouremployeesattheStore,and,thereafter,tomailsuchnoticetoyou
byprepaidpostagereturnreceiptrequested.Anynoticewillbedeemedtohavebeenreceived(i)inthecaseofpersonaldelivery,atthetimeofdelivery,or
(ii)inthecaseofanexpediteddeliveryservice,three(3)BusinessDaysafterbeingdepositedwiththeservice,or(iii)inthecaseofregisteredorcertified
mail,three(3)BusinessDaysafterthedateofmailing,or(iv)inthecaseoffacsimileorelectronicmail,upontransmissionwithproofofreceipt,aslongasa
confirmationcopyofthenoticeissentasdescribedabove.Copiesofnoticesdeliveredtoyourdesigneeoremployeewillbeconsideredreceivedtwenty
four(24)hoursaftersuchdelivery.Eitherofusmaychangeournotificationaddressbynotifyingtheotherinwriting.Wemayunilaterallyamendthis
Section31(d)(i)toprovidethatnoticesmaybesentbyelectronicmail.Ifwepermitdeliverybyelectronicmail,thesenderwillberequiredtoconfirmthe
electronicmailbysendinganoriginalconfirmationcopyofthenoticebycertifiedorregisteredmailorexpediteddeliveryservicewithinthree(3)Business
Daysaftertransmission.NoticestoyoubyelectronicmailwillbeaddressedtotheStoreaddress,theelectronicmailaddressfortheStorecomputerorother
electronicmailaddresstowhichyouhaveaccessandthatwehavepreviouslydesignatedinawrittennoticetoyou,ortoyouraddressshownonthe
signaturepagetothisAgreement.WewillsendanelectronicremindertoyourStorecomputertonotifyyouofanyelectronicnotice.Noticestousby
electronicmailwillbeaddressedtotheaddressshownonthesignaturepagetothisAgreementorotheraddressthatwedesignateinwriting.
(ii)Wereservetherighttoestablishelectronicmailings(i.e.,email),websites,orotherformsofcommunicationsinwhichto
communicateanddistributeinformationto7Elevenfranchisees.Youagreethatwemayutilizesuchelectroniccommunicationstoeffectivelyprovide
bindingnoticestoyou.Youagreetoprovidenoticestousassetforthaboveunlessweexpresslyconsentandprovideforelectronicnoticesfromyou.
(e)Severability.Exceptasexpresslyprovidedtothecontraryherein,eachprovisionofthisAgreementandanyportionthereofisconsidered
severable.If,foranyreason,anyprovisionofthisAgreementcontravenesanyexistingorfuturelaworregulation,theprovisionwillbeconsidered
modifiedtoconformtothelaworregulationaslongastheresultingprovisionremainsconsistentwiththepartiesoriginalintent.Ifitisimpossibletoso
modifytheprovision,suchprovisionwillbedeletedfromthisAgreement.IfanyprovisionofthisAgreement(includingalloranypartofParagraphs15,16
or22)isdeclaredinvalidbyacourtofcompetentjurisdictionforanyreason,thepartieswillcontinuetobeboundbytheremainderofthisAgreement,
whichwillremaininfullforceandeffectprovided,thatifanyprovisionoftheAgreement,whichwe,inoursolediscretion,determinetobematerial,is
declaredinvalidbyacourtofcompetentjurisdiction,wereservetherighttoterminatethisAgreementin
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accordancewithParagraph26(a)(8)and,inconnectionwithsuchtermination,offeryouadifferent7Elevenfranchiseagreementinaccordancewith
Paragraph10(c).
(f)PersonalQualification.WeareenteringintothisAgreementwiththeperson(s)namedastheFranchisee(s)onthesignaturepagein
relianceuponhis,herortheirpersonalqualificationsandupontherepresentationandagreementthathe,sheortheyagreetobetheFranchisee(s)ofthe
Store,willactivelyandsubstantiallyparticipateintheoperationoftheStoreandwillhavefullmanagerialauthorityandresponsibilityfortheoperationof
theStore.Nochangesintheownershipand/orcontrolofthefranchisemaybemadewithoutouradvancewrittenconsent.Anyperson(s)subsequently
addedasaFranchiseeinawritingsignedbythepartiesmustlikewiseactivelyandsubstantiallyparticipateintheoperationoftheStoreandhavefull
managerialauthorityandresponsibilityfortheoperationoftheStore.
(g)CompleteAgreement.ThisAgreementandtheExhibits,Amendments,andAddendatothisAgreement,includinganyotheragreements
specifiedinExhibitD(allofwhichareherebyincorporatedhereinandmadeapartofthisAgreement),containtheentire,fullandcomplete
agreementbetweenusandyouconcerningtheStore.Thisisafullyintegratedagreementanditsupercedesallearlierorcontemporaneouspromises,
representations,agreementsandunderstandings.NoagreementrelatingtothematterscoveredbythisAgreementwillbebindingonusoryouunless
anduntilithasbeenmadeinwritinganddulyexecutedbyyouandoneofourauthorizedofficers.Ouragentsoremployeesmaynotmodify,addto,
amend,rescindorwaivethisAgreementinanyothermanner,includingbyconductmanifestingagreementorbyelectronicsignature,andyouare
herebyputonnoticethatanypersonpurportingtoamendormodifythisAgreementotherthanbyawrittendocumentsignedbyoneofour
authorizedofficers,isnotauthorizedtodoso.Yourepresentandwarrantthatyouhavesupplieduswithallinformationwerequestedandthatallsuch
informationiscompleteandaccurate.Youfurtherrepresentandwarrantthatyouhavenotreliedonandneitherwenoranyofouragentsor
employeeshavemadeanyrepresentationsrelatingtotheStoreexceptasexpresslycontainedinthisAgreement,or(i)astothefutureorpastincome,
expenses,salesvolumeorpotentialprofitability,earningsorincomeoftheStoreoranyotherlocation,exceptasprovidedinItem19ofourUniform
FranchiseOfferingCircular,or(ii)astositespecificinformation,exceptasprovidedinourHereAreTheFactssupplementaldisclosure.
(h)Consents.AllconsentsrequiredtobegivenbyuspursuanttothisAgreementmustbegiveninwriting,andsuchconsentsmaybegranted
orwithheldinoursolediscretion.
(i)Interpretation.AsusedinthisAgreementandallexhibitsandattachmentshereto,
(i)thewordsyouagreeorweagreeoryouwillorwewillmeananimperativedutyandwillbeinterpretedandconstruedto
havethesamemeaningandeffectasthewordsyoushalloryoumustorweshallorwemustand
(ii)thewordsincluding,includeorincludeswillbeinterpretedandconstruedtohavethesamemeaningandeffectasthewords
including,butnotlimitedtoorincluding,withoutlimitation.
(j)WAIVEROFDAMAGES.YOUHEREBYWAIVE,TOTHEFULLESTEXTENTPERMITTEDBYLAW,ANYRIGHTTOOR
CLAIMFORANYPUNITIVE,EXEMPLARY,INCIDENTAL,INDIRECT,SPECIAL,ORCONSEQUENTIALDAMAGESAGAINSTUS,OUR
AFFILIATES,ANDOURRESPECTIVEOFFICERS,DIRECTORS,SHAREHOLDERS,PARTNERS,AGENTS,REPRESENTATIVES,
INDEPENDENT
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CONTRACTORS,SERVANTSANDEMPLOYEES,INTHEIRCORPORATEANDINDIVIDUALCAPACITIES,ARISINGOUTOFANYCAUSE
WHATSOEVER(WHETHERSUCHCAUSEBEBASEDINCONTRACT,NEGLIGENCE,STRICTLIABILITY,OTHERTORTOROTHERWISE)
ANDAGREETHATINTHEEVENTOFADISPUTE,YOUWILLBELIMITEDTOTHERECOVERYOFANYACTUALDAMAGESSUSTAINED
BYYOU.IFANYTERMOFTHISAGREEMENTISFOUNDORDETERMINEDTOBEUNCONSCIONABLEORUNENFORCEABLEFORANY
REASON,THEFOREGOINGPROVISIONSOFWAIVERBYAGREEMENTOFPUNITIVE,EXEMPLARY,INCIDENTAL,INDIRECT,SPECIAL,
ORCONSEQUENTIALDAMAGESSHALLCONTINUEINFULLFORCEANDEFFECT.
(k)ConsultationwithAdvisors.Youacknowledgethatyouhavereceived,readandunderstandsthisAgreementandtherelatedexhibitsand
agreements,thatwehaveaffordedyousufficienttimeandopportunitytoconsultwithlawyersandotherbusinessandfinancialadvisorsselectedbyyou
aboutthepotentialbenefitsandrisksofenteringintothisAgreement,andthatyouareenteringintothisAgreementofyourownvolition.
(l)SavingsClause.Anyofyourobligationsthatcontemplatetheperformanceofsuchobligationaftertheterminationorexpirationofthis
Agreementorthetransferofanyinterestherein,includingParagraphs5,17,18,19,28,29,and30,willbedeemedtosurvivesuchtermination,expiration
ortransferandwillremainbindinguntilfullydischargedtooursolesatisfaction.
YouandwehaveexecutedthisAgreementthisdayof,20.
7ELEVEN,INC.
Signature
MarketManager
FullName(Typed)
Signature
VicePresident/AssistantSecretary
FullName(Typed)
7ElevenOffice/StoreNo.
AddressofOfficeStreet
CityStateZip
FacsimileNumber:_________________________________
ElectronicMail:franchiseenotice@711.com
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FRANCHISEE(S)
Signature
FullName(Typed)
Signature
FullName(Typed)
Witness:
Witness:
WitnessofAboveSignature
WitnessofAboveSignature
_________________________________________________________________________________________________________________________
AddressofFranchiseesResidence
Street
_________________________________________________________________________________________________________________________
City
StateZip
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EXHIBITA
STORE
YOUACCEPTTHESTOREASISINITSCONDITIONONTHEDATEOFTHISEXHIBIT,EXCEPTASSPECIFICALLYNOTEDONTHIS
EXHIBIT
ThisExhibitisbasedontheinformationwehaveonthedateofthisAgreement.Itisaccuratetothebestofourknowledgeandbelief.Ifyourequest,
weagreetomakeacompletecopyofanymasterleaseoranydocumentsrecordedagainsttheStoreavailabletoyou.Ifyouhaveanyquestionsaboutthis
Exhibitoryouwouldlikeamorecompleteexplanationofanyitem,pleasecontacttheMarketManager.
StoreandAdjoiningPropertyLeaseInformation:
7ELEVENStoreNo.
Street
_________________________________________________________________________________________________________________________
City
State
Zip
[]PlotPlanandLegalDescriptionAttached
[]Ownedbyus
[]Leasedbyus
Thepresenttermofthemasterleaseexpiresonthedayof,.Wehavenoobligationtoreneworexerciseanyoptionto
extendthemasterlease.Ifthemasterleaseisnotrenewed,theTermofthisAgreementwillexpire30daysbeforetheexpirationofthemasterlease.
SpecialCharges:
CommonArea(includinglandscapedareas):IfweleasetheStore,themasterleaseordeclarationsorotherdocumentsrecordedagainsttheStore,may
imposecommonareamaintenancechargesorotherchargesforwhichyouwillberesponsibleprovidedthatsuchchargesmusthavebeenprovided
forbythetermsoftheinitialmasterleaseorthetermsofanyoptionsthatexistedatthetimeoftheinitialmasterlease.Pleaseconsultthemasterlease
orrecordeddocumentsforacompletedescriptionofanysuchchargesthatwillbeassessedagainsttheStore.
Other(forexample,maintenance,requiredservices,cooperativeAdvertising,renttaxes):
ExhibitAPage1
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SpecialOperatingProvisions:
WehavedisclosedinformationonthisExhibittothebestofourknowledgebutthemasterlease,ifany,oranydeclarationsorotherdocumentsofrecord
againsttheStore,oranystateorlocalordinances,permits,etc.,mayresultinchargesoroperatingrestrictionsinvolvingtheStorethatarenotlistedonthis
Exhibit.YoushouldrefertoanymasterleasefortheStore,documentsrecordedagainsttheStoreandlocallawstodeterminetheextentofanyofthese
restrictions.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitAPage2
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EXHIBITB
7ELEVENEQUIPMENT
YOUACCEPTTHEEQUIPMENTASISINITSCONDITIONONTHEDATEOFTHIS
EXHIBIT,EXCEPTASSPECIFICALLYNOTEDONTHISEXHIBIT.
ThisExhibitisbasedontheinformationwehaveonthedateofthisAgreement.Itisaccuratetothebestofourknowledgeandbelief.However,ourmaster
listof7ElevenEquipmentthatwemaintaininourrecordscontrols.Ifyourequest,weagreetomakeacompletecopyofanymasterleasecoveringthe7
ElevenEquipmentavailabletoyou.IfyouhaveanyquestionsaboutthisExhibitoryouwouldlikeamorecompleteexplanationofanyitem,please
contacttheMarketManager.
Descriptionof7ElevenEquipment:
7ELEVENStoreNo.
7ELEVEN
Description
Make
Model
SerialNo.
7EID
Owned
Leased
7ELEVEN
Description
Make
Model
SerialNo.
7EID
Owned
Leased
ThefollowingGasolineandotherspecifiedequipment,andallreplacementsoradditionsthereto,areexcludedfromtheLeaseof7Eleven
EquipmentunderthisAgreement.
7ELEVEN
Description
Make
Model
SerialNo.
7EID
Owned
Leased
(Also)SeeattachedcomputergeneratedEquipmentListingdatedconsistingofpages,whichismadeapartofthisAgreement.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitBSoloPage
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EXHIBITC
7ELEVENCONTRACTUALINDEMNIFICATION
THISISNOTANINSURANCEBINDER,CERTIFICATE,ORPOLICY.YOUARENOTOURINSUREDANDYOUDONOTHAVETHE
PROTECTIONSORRIGHTSUNDERTHISINDEMNITYAGREEMENTNORMALLYASSOCIATEDWITHANINSUREDVISVISAN
INSURER.THEREFORE,THISEXHIBITCISACONTRACTUALINDEMNITYONLY.ITISYOURRESPONSIBILITYTODECIDEWHETHER
YOURINTERESTSAREBESTSERVEDTHROUGHTHISINDEMNIFICATIONORBYINSURANCEINACCORDANCEWITHPARAGRAPH18
OFTHESTOREFRANCHISEAGREEMENT.WEENCOURAGEYOUTOCONSULTANATTORNEY,INSURANCEAGENT,BROKEROR
OTHERINDUSTRYEXPERTTOASSISTYOUINMAKINGTHATDETERMINATION.
7ELEVENStoreNo.
Liability:
THEINDEMNIFICATIONCOVERAGEPROVIDEDINTHISSECTIONOFEXHIBITCDOESNOTNECESSARILYPROVIDEYOUTHE
FRANCHISEEWITHTHESAMEORSIMILARPROTECTIONASYOUWOULDRECEIVETHROUGHASTANDARDCOMMERCIAL
GENERALLIABILITYINSURANCEPOLICY.
Subjecttotheconditions,exclusionsandlimitationsstatedinthisFranchiseAgreement,weagreetoprovideyouwithcontractualindemnificationfor
losses,uptoamaximumof$500,000peroccurrence,whichariseoutof,orasaresultof,bodilyinjury,personalinjuryorpropertydamageincurredbyany
thirdparty,excludinganemployeeoragentofyoursactingwithinthecourseandscopeofhisorheremploymentoragency,inconnectionwithyour
lawfuloperationoftheStore.
ForpurposesofthisExhibitC,thetermsoccurrence,bodilyinjury,personalinjury,andpropertydamagearedefinedasthosetermsareordinarily
usedanddefinedinastandardCommercialGeneralLiabilityPolicy.
ThecontractualindemnificationprovidedtoyoupursuanttothisExhibitCisthatwhichwouldnormallybeprovidedunderthoseportionsofastandard
CommercialGeneralLiabilityPolicyrelatingtocoveragesregardingbodilyinjury,propertydamageandpersonalinjuryliability,speciallyendorsedto
includecoverageforliquorliability,butotherwisesubjecttotheconditions,exclusionsandlimitationsstatedinastandardCommercialGeneralLiability
policy,andasotherwiselimitedorexcludedbythisExhibitC.
FireandOtherPerils:
Subjecttotheconditions,exclusionsandlimitationsstatedinthisFranchiseAgreement,weagreetoprovideyouwithcontractualindemnificationforup
tofullreplacementcostoftheInventoryandStoresuppliesfordirectlossesasaresultoffire,lightning,windstorm,hail,explosion,riot,riotattendinga
strike,civilcommotion,aircraft,vehicle,smoke,vandalism,andmaliciousmischief.
ExhibitCPage1
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Robbery:
Subjecttotheconditions,exclusionsandlimitationsstatedinthisFranchiseAgreementandwhere,inourreasonableopinion,allReceiptsare
properlyaccountedforinaccordancewiththisFranchiseAgreementandappropriatesecuritymeasuresaretaken,weagreetoprovideyouwith
contractualindemnificationasfollows:
1.ForasinglelossofReceiptsandCashRegisterFundastheresultofaRobbery,anamountequalto$50foreachcashregisterinoperationatthetimeof
theRobbery,andonehalfofthefullreplacementcostforasinglelossofInventoryandStoresupplieswithamaximumaggregatelimitforanysingleloss
of$500.
2.ForasinglelossofReceiptsasaresultofaRobbery,uptothefullreplacementamountoftheCurrentDeposit,less$100providedthattheReceipts
werebeingproperlypreparedfordepositorwerebeingtransportedtotheBankorwereintransitbetweentwoormore7ElevenStoresfranchisedbyyou
whileenroutetotheBank.
3.ForasinglelossofReceiptsasaresultofaSafeRobbery,uptothefullreplacementamountequaltothesumoftheCurrentDeposit,andtheReceipts
fromthecurrentCollectionPeriod,less$100.
4.ForasinglelossoftheCashRegisterFund,uptothelesserof$2,500(or$5,000withpriorDivisionManagerApproval),ortheamountshowninthe
appropriateaccountontheFinancialSummaries:(1)asaresultofaSafeRobbery,or(2)whiletheCashRegisterFundisbeingpreparedfordepositor
transportedtoorfromtheBank,or(3)whiletheCashRegisterFundisbeingtransportedbetweentwoormore7ElevenStoresfranchisedbyyouwhileen
routetoorfromtheBank,andiftheamounttakentotheBankisnotedintheCashReportandareceiptisobtainedfromtheBankshowingthecorrect
amountofmoneyobtained.
Burglary:
Subjecttotheconditions,exclusionsandlimitationsstatedinthisFranchiseAgreementandwhere,inourreasonableopinion,allReceiptsare
properlyaccountedforinaccordancewiththisFranchiseAgreementandappropriatesecuritymeasuresaretaken,weagreetoprovideyouwith
contractualindemnificationasfollows:
1.ForasinglelossofInventory(otherthantobaccoproducts)asaresultofaBurglary,uptothefullreplacementcost,less$100.
2.ForasinglelossoftobaccoproductsintheInventoryasaresultofaBurglary,uptothelesserof(1)theactualcostoftobaccoproductstaken,or(2)the
equivalentofthetotalreasonablepurchases,atcost,oftobaccoproductsfortheStorefortheprior12weeks,dividedby6(withalimitofanamountequal
totwicetheaverageweeklypurchases,atcostminus$100,untiltheStorehasbeenopen12weeks),less$100.
3.ForasinglelossofReceiptsasaresultofaSafeBurglary,uptoanamountequaltothesumoftheReceiptsfromtheimmediatelypreviousCollection
PeriodplustheCashRegisterFund,less$100.
ThemaximumaggregateexclusionforasinglelossastheresultofaBurglaryand/orSafeBurglarywillbe$100.
ExhibitCPage2
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Conditions,ExclusionsandLimitations:
YouwillnotbeindemnifiedunderthisFranchiseAgreementunderthefollowinginstancesand/orcircumstances:
1.Ifyoudonotfully,completely,andingoodfaithparticipateandcooperatewithus,ourinsurancecompanyoranyrepresentativeorlawfirmwe
designateinanyinvestigationordefenseofanyclaimorlawsuitsubmittedorfiledagainstyouor7Eleven,Inc.orifitisdeterminedafterinvestigation
thatthelosswasnotasreportedbyyou.
2.IfyoudonotuseyourbesteffortstopromptlymitigateeachlossforwhichyouotherwisemaybeentitledtobeindemnifiedunderthisAgreement.
3.Ifyouoryouremployeeshad,orshouldhavehad,knowledgeoftheincidentfromwhichthelossarose,andyouoryouremployeesdidnotproperlyand
promptlyreporttheincidenttousinthemannerwespecifyintheOnLineSystemsGuideorotherapprovedreportingprocedures.
4.ForanylossassociatedwithaRobberyorBurglaryif(1)atthetimeoftheRobberyorBurglary,youwerenotusingthecashcontrolequipmentthatwe
installattheStoreand(2)youdonot,withintwentyfourhoursoftheloss,fileareportwiththeappropriatelawagencyandfurnishoneofour
representativeswith(i)anoticeandproofoflossreport(acceptabletous),(ii)acopyofthereportfiledwiththelawagency,and(iii)anyreportrequiredto
befiledwiththeinsurancecompany.
5.ForanylossofanyInventoryand/orStoresupplies,ifsuchInventoryorStoresupplieswerelocatedoutsideoftheStorebuildingatthetimeoftheloss.
6.IfyouwereinbreachoftheFranchiseAgreementatthetimethelossoccursandthebreachcauses,creates,orcontributestotheoccurrenceoftheloss.
7.Ifthelossiscausedby,resultsfrom,oroccursinconnectionwith,anintentionalactcommittedbyyouorbyyouragentoremployee.Forpurposesof
thisAgreement,alosswillbedeemedtohavebeencausedbyanintentionalactifatthetimetheactwascommitted,youoryouremployeeoragentknew
thatthelosswouldresultfromtheactorifthelosswasareasonablyforeseeableconsequenceoftheact.Thisexclusionwillnotapplywhentheintentional
actwasdeterminedtohavebeenjustifiedasselfdefenseordefenseofanotherpersonbyacourtofcompetentjurisdiction.
8.Ifthepersonassertingtheclaimagainstyouwasorisanemployeeoragentandiftheinjuryordamagewasincurred,inwholeorinpart,inconnection
with,orwithinthecourseanscopeof,theemploymentoragency.
9.ForanyclaimbroughtagainstyouforanybodilyinjuryorpersonalinjurycausedbyorarisingoutofanyFreshFoodproduct(asdefinedinExhibitE)if
yousoldsuchproductafterourwrittennotificationtoyouthateither:(1)thevendorprovidingtheproducthasrefusedorfailedtosubmittheproductto
LevelImicrobiologicaltesting,or(2)thevendorsproducthasfailedLevelImicrobiologicaltesting.Onceyoureceivewrittennotificationfromusthatthe
vendorsproducthasbeensubmittedorresubmittedfortestingandthattheproducthaspassedLevelImicrobiologicaltesting,weagreetothereafter
indemnifyyoupursuanttothisAgreementforyoursubsequentsalesoftheproduct.
10.ForanyCashRegisterFundlossifyouhaverefusedtoallowustoauditthatfundatanytimewithinthetwelvemonthperiodbeforetheloss.
ExhibitCPage3
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LossesandExpensesNotAddressedbythisAgreement:
ThefollowinglossesandexpensesarenotintendedtobeaddressedinthisAgreementandthereforeyouarenotindemnifiedbythisAgreement:
1.Foranyindemnityyouvoluntarily,contractuallyorstatutorilyextendtoyouremployeesoragents.
2.Foranylosses,liabilitiesorobligationswhichyoustatutorily,contractuallyorbyanyothermeansassume.
3.ForanylossthatisyourresponsibilityundertheFranchiseAgreement.
4.Foranypunitiveorexemplarydamages,penaltiesorfinesassessedagainstyou.
Inaddition,youremployeesandagentswillnotbeindemnifiedbyusandarenotpartiestothisAgreementorthirdpartybeneficiariesofthis
AgreementandthereforehavenoindemnificationrightsunderthisAgreement.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitCPage4
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9/8/2016
EXHIBITD
SELECTEDPROVISIONS
[AllBlanksMustbeCompletedandFranchiseAgreementMustbeDeliveredatLeast5BusinessDaysPriortoExecutionofFranchiseAgreement.]
(a)TheStoremustbea24HourOperation,unlessprohibitedbylaworweagreeinwritingtodifferentoperatinghours.IftheStoreisprohibitedbylaw
fromdoingbusinessasa24HourOperation,theStoremustoperatethemaximumnumberofhourspermittedbylaw.Lawsregulatingthemaximumnumber
ofhoursmaychangefromtimetotime,andthismaychangethenumberofhoursyouwilloperatetheStore.
(b)TheFranchiseFeewas$.TheDownPaymentwas$.TheDownPaymentincludeda$contributiontowardthe
estimatedCostValueoftheinitialInventory,a$paymenttowardtheestimatedinitialgovernmentalfeesfornecessarylicenses,permits,and
bonds(anOperatingExpense),anda$paymentfortheinitialCashRegisterFund.
(c)TheinitialannualinterestratewechargeyouontheunpaidbalanceintheOpenAccountwillbe%.Theannualinterestratewechargeyou
ontheunpaidbalanceintheOpenAccountwillbeadjusted,effectiveeachMarch1,andwillcontinueineffectthroughthelastdayofFebruaryofthe
followingyear.Theinitialandongoingannualinterestratewillbe2%overtheprimeratechargedbyBankofAmerica(oranysuccessor)asofthefirst
workingdayofeachcalendaryearduringwhichtheadjustmentbecomeseffective.
(d)WeagreetopayyouinterestonanycreditbalanceintheOpenAccountpursuanttoParagraph13attheprimeratechargedbyBankofAmerica(orany
successor),asofthefirstworkingdayofeachcalendaryear,minus2%.Theannualinterestratewillbeadjusted,effectiveeachMarch1,andwillcontinue
ineffectthroughthelastdayofFebruaryofthefollowingyear.IftheinterestchargedundertheFranchiseAgreementorthisExhibitDisgreaterthanthe
maximuminterestpermittedbyapplicablelaw,theexcessamountchargedwillbeconsideredautomaticallycreditedtotheprincipalbalanceoftheloan,
sinceweintendtoavoidcharginganyinterestthatwouldviolateanyapplicablelaw.
(e)YouagreetoattendbothStoreandclassroomtraining.Ifyouareonlyoneindividual,youagreetoattendthetraining.Ifyouareacorporation,you
designateandweapprovetoreceivetraining.Eachparticipantmustsuccessfullycompleteeachphaseoftrainingin
ordertocontinuethetrainingprocess.
(f)ThepercentageusedtoadjustretailtocostfordeterminingCostValueandInventoryVariationwillbecomputedbydividingtheprevious12months
Purchasesatcost(includingdeliverycharges,costequalization,andadjustmentfordiscountsandallowancesreceived)bytheprevious12months
Purchasesatretail.SpecialItemsPurchases,consignedmerchandise,writeoffs,andproductmarkdownswillbeexcludedfromPurchasesatcostaswellas
Purchasesatretail.ForStoresnotpreviouslyoperatedas7ElevenStores,untiltheStorehasbeeninoperationfor3months,theaveragepercentagebased
ontheprevious12monthsforall7ElevenStoresinthe7ElevenmarketwheretheStoreislocatedwillbeused.AftertheStorehasbeeninoperationfor
threemonths,thepercentagewillbecomputedfortheStorebasedontheprevious12monthsoperationoftheStore(or,iftheStorehasnotbeenin
operationsfor12months,forthenumberofmonthstheStorehasbeeninoperation).
(g)Checksfromustoyouwillbepayableto.
ExhibitDPage1
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9/8/2016
(h)TheWeeklyDrawweagreetoremittoyouonaweeklybasiswillbe$,unlessyouandwechangetheWeeklyDrawbymutualwrittenagreement.
(i)7ElevenCharge:
(1)Fora24HourOperation:
The7ElevenChargefortheStoreis50%oftheGrossProfit(exceptasotherwiseprovidedinParagraphs10(b)and/or(c)oftheFranchise
Agreement).
(2)Forpermittedreductioninhoursofoperation:
IfyouhaveourpermissiontooperatetheStoreaslessthana24HourOperation,the7ElevenChargefortheStorewillbe50%oftheGross
Profitplus0.1%oftheGrossProfitforeachhourduringanormalweekofoperationthattheStoreisclosed.
(3)Fornonpermittedreductioninhoursofoperation:
IfyouoperatetheStorelessthantherequirednumberofhoursatanytimewithoutourpermission,the7ElevenChargeforthatAccounting
Periodwillbethe7ElevenChargeasdeterminedby(i)(1)or(2)above,asapplicable,plus4%oftheGrossProfitifyouoperateatleast136hoursperweek
or6%oftheGrossProfitifyouoperatelessthan136hoursperweek.Thisincreaseinthe7ElevenChargeisnotouronlyremedy,andisinadditionto
otherremediesavailabletous.
(j)Otherspecialprovisions(specify):
________________________________________________________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________________________________________________________
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
ExhibitDPage2
51/80
9/8/2016
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitDPage3
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9/8/2016
EXHIBITE
DEFINITIONS
AccountingPeriodmeansacalendarmonthduringyouroperationoftheStore,exceptthatiftheEffectiveDate,expiration,terminationorsurrenderof
theStoreand7ElevenEquipmentoccursduringanycalendarmonth,theportionofthatmonthwhichfollowstheEffectiveDateorprecedestheother
eventswillbeanAccountingPeriod.WehavetherighttochangetheAccountingPeriodatanytimeuponwrittennoticetoyou.
AdvertisingFeemeansanamountequaltothepercentageofGrossProfitspecifiedinParagraph22.
AdvertisingMaterialsandProgramsmeansallmaterials,programsandpromotionsadvertisingorpromotingthe7ElevenSystem,7ElevenStoresand/or
theproductsorservicesprovidedby7ElevenStores,includingthefollowing:inStoreandoutofStoreadvertisingandpromotionalmaterialsand
displayspointofsaledisplaymaterialswindow,counterandotherpromotionalsignagebillboardsdirectmail,newspaperandprintadvertisingother
advertisingandpromotionalmaterialsInternetwebsite(s)televisionandradiomediaStoregrandopening/reopeningeventsandpromotionsand
national,regional,local,andStorespecificadvertisingandpromotionalcampaignsandevents,includingwithrespecttoeachoftheforegoing,creation,
development,maintenance,administration,spaceandtimecharges,agencyplanning,selection,andplacement.
Affiliatemeans,withrespecttoanypersonorentity,anyotherpersonorentitycontrolling,controlledby,orundercommoncontrolwithsuchpersonor
entity.
AgreementorFranchiseAgreementmeansthisagreementbetweenyouandusfortheoperationoftheStoreunderthe7ElevenSystemandService
Mark.
AntiTerrorismLawsmeansExecutiveOrder13224issuedbythePresidentoftheUnitedStates,theUSAPATRIOTAct,andallotherpresentandfuture
federal,stateandlocallaws,ordinances,regulations,policies,listsandanyotherrequirementsofanygovernmentalauthorityaddressingorinanyway
relatingtoterroristactsandactsofwar.
AuditmeansaphysicalcountoftheInventory(pricedatretailvaluedeterminedasprovidedinthisAgreement),Receipts,CashRegisterFund,cash,
bankdrafts,andsuppliesofitemsforwhichyouearnacommission(e.g.,lotteryticketsandmoneyorderblanks),pursuanttoournormalprocedures.
BankmeansthebankorsimilarinstitutionthatwedesignatefortheStoreand,specifically,theaccountestablishedfortheStore.
BasePeriodGrossProfitmeanstheGrossProfitoftheStorefortheimmediatelyprecedingtwelve(12)monthperiod,regardlessofwhooperatedtheStore
duringsuchtwelve(12)monthperiod.
BonaFideSuppliersmeanspersonsorentitiesregularlyconductingthebusinessofsupplyingordistributingmerchandise,suppliesorservicestoretail
businessesandperformingallofthefunctionsnormallyassociatedwithsuchactivitiesprovidedthat,unlessyouobtainourpriorwrittenconsent,neither
you,yourAffiliate,noranyother7ElevenfranchiseemaybeaBonaFideSupplier.
BookkeepingRecordsmeanstheFinancialSummariesandotherrecordsandreportsthatweprepareorthatwerequireyoutopreparerelatingtothe
operationoftheStore.Wemay,atouroption,changetheformat,mannerortimingoftherecordsweprepareandtheproceduresforcollectingorcompiling
data
ExhibitEPage1
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forthereports.TheBookkeepingRecordswillbebaseduponinformationyousupplytous,informationobtainedbyusfromAudits,Storeinspectionsand
vendors,and,wherenecessaryorappropriate,informationbaseduponestimatesorfactorsconcerningStoretransactions.WepreparetheBookkeeping
RecordsinaccordancewiththetermsofthisAgreement,andsuchtermswillcontroloveranyexternalaccountingrules.Wecurrentlymaintainthe
inventoryrecordsandreportsderivedfromtheserecordsbyusingtheRetailMethod(seedefinitionofRetailBookInventory),andadjusttheretailvalue
tocostasdescribedinExhibitD.However,wereservetherighttochangeourmethodofInventoryvaluationfromtheRetailMethodtotheCostMethod
eitherfortheentireStoreorforone(1)ormoreproductcategories.Ifweexercisethisright,youagreetoenteranamendmenttothisAgreementwhich
contemplatesreasonableconformingchangestothisAgreementtoaddressconversionfromtheRetailMethodtotheCostMethod.Suchconforming
amendmentwillbedesignedtohavenomaterialeffectonyouorus.
BurglarymeansthestealingofInventoryfromwithintheStoreduringaperiodoftimewhentheStoreisclosedaspermittedbythisAgreement,alldoors
areproperlyclosedandlocked,andentryisbyactualforceevidencedbyvisiblemarksmadebytools,explosives,electricity,orchemicals.
BusinessDaymeansanydayotherthanSaturday,Sundayorthefollowingnationalholidays:NewYearsDay,MartinLutherKingDay,PresidentsDay,
MemorialDay,IndependenceDay,LaborDay,ColumbusDay,VeteransDay,ThanksgivingandChristmas.
CashRegisterFundmeanstheamountagreedtoinwritingbyyouandusforchangeintheStore.
CashReportmeanstheelectronicformorothermethodofreportingyourReceiptsand/orNetSalesand/oranyotherinformationthatwerequirefrom
timetotime.YouagreetocompleteaCashReportforeachCollectionPeriod.EachCashReportmustindicatethetimeanddateatwhichtheCollection
Periodended.
CashVariationmeanstheunaccountedfordifferencebetweenReceiptsrequiredtobedepositedordeliveredtousandtheactualReceiptsdepositedor
deliveredtousasreflectedintheCashReport.
Categorymeansadistinct,measurableandmanageablegroupofproductsand/orservicessoldfroma7ElevenStoreasspecifiedbyus.
CollateralhasthemeaninggivensuchtermintheSecurityAgreement.
CollectionPeriodmeanseachtimeperiodforwhichyoureportReceipts.YourfirstCollectionPeriodwillstartwhenyoubeginoperatingtheStore,and
mayend,atyourdiscretion,atanytimewithinyourfirst24hoursofoperation.EachsubsequentCollectionPeriodwillbeginassoonastheimmediately
precedingCollectionPeriodendsandmustbe24hoursinlength(unlessweagreeotherwise).
CompetitiveBusinessmeansanybusinessthatisthesameasorsimilartoa7ElevenStore(except7ElevenStoresoperatedundervalidagreementswith
us),includingaconveniencestoreorotherstorenotdesignatedasaconveniencestoreinwhichtheproductmixisfiftypercent(50%)ormoreofgoodsor
servicessubstantiallysimilartothosethencurrentlyofferedbya7ElevenStore.
ConfidentialInformationmeansknowledge,knowhow(forexample,methodsandprocesses)andotherinformationconcerningtheoperationoranother
aspectofa7ElevenStorewhichmaybecommunicatedtoyouorofwhichyoumaybeapprisedinconnectionwiththeoperationoftheStoreunderthe
termsofthisAgreement,includingallinformationcontainedintheOnLineSystemsSupportGuideallinformation,knowledge,knowhow,techniques
andmaterialsusedinorrelatedtothe7ElevenSystem
ExhibitEPage2
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whichweprovidetoyouinconnectionwiththisAgreementandinformationordatacompiledbyorstoredinthe7ElevenStoreInformationSystem.
CostofGoodsSoldmeanstheCostValueofInventoryatthebeginningoftheAccountingPeriodplusthecostofPurchasesduringtheAccounting
Period(includingdeliverychargesandcostequalization),andminustheCostValueoftheInventoryattheendoftheAccountingPeriod.Wewillmake
adjustmentsothatanybadmerchandise(causedbyyouoryouremployees)andInventoryVariationwillnotbeincludedinCostofGoodsSold.Wewill
credittoCostofGoodsSoldalldiscountsandallowances(includingpromotionalanddisplayallowances)paidtousandallocatedorreasonablytraceable
toPurchases,exceptfor:
(a)
WholesaleVendordiscountsandallowances(thatis,discountsandallowancescustomarilyofferedbyvendorstowholesalersprovided,
however,thatintheeventwebecomeawholesalertoyou,foranyproductsorservicesthatweselltoyouforwhichwereceivewholesaler
discountsorallowances,thewholesalepricestoyouwillbecompetitivewiththeotherwholesalersofthoseproductsonaMarketBasket
Basis)and
(b)
reimbursementstousforourexpendituresundervendorscooperativeadvertisingorothersimilarprogramswherethevendorpartiallyor
whollyreimbursesus(orwherecostsareshared)foradvertisingexpenditureprograms,solongasweactuallyspendthemoneyinaccordance
withthevendorscriteriaforadvertisingthevendorsproduct.
Wewillcreditdiscountsandallowances,notallocatedorreasonablytraceabletoindividualstorePurchases,toCostofGoodsSoldonthebasisofStore
salesorPurchasescomparedwithsalesorpurchasesofallaffectedstores.Wewillcreditdiscounts,allowancesandthevalueofpremiumsyoureceiveto
CostofGoodsSold.WewillnotbeobligatedtocreditanyuncollecteddiscountsorallowancestoCostofGoodsSold.WearenotrequiredtocreditSystem
TransactionAmountstoCostofGoodsSold.WearenotrequiredtocreditvendorsuppliedequipmentorequipmentreimbursementstoCostofGoodssold
if:
(a)
theequipmentispartofavendorsstandardprovisionofservicestoitscustomersingeneral(forexample,whereavendorgenerallyoffers
merchandiserackstoitscustomers)
(b)
avendorprovidesequipmentasanintegralpartofaserviceforwhichyoureceiveacommission,rentalfeeorroyalty(forexample,ATMs,
copiermachines,telephones,etc.)or,
(c)
wemadeacommerciallyreasonableefforttonegotiatewiththevendortoobtainalowerproductcostinsteadoftheequipment.
WearealsonotrequiredtocreditmoniespaidtousbyvendorstopurchaseequipmenttoCostofGoodsSoldifthemoniesareactuallyusedbyusto
purchaseequipmentasdesignatedbythevendor.
CostMethodmeansamethodofinventoryvaluationwhereby(a)aperpetualunitinventoryismaintained(asconfirmedbyaperiodicphysicalcountof
theinventory)and(b)inventoryatcostiscomputedastheunitinventorytimesnetunitcost.
CostValuemeansthecostvalueoftheInventoryatanytime,determinedby:(a)deductingfromtheRetailBookInventorytheincludedretailvalueof
allconsignedmerchandise,anddesignatedSpecialItems(b)adjustingfromretailvaluetocostasspecifiedinExhibitDand(c)addingthecostvalueof
thedesignatedSpecialItems.
ExhibitEPage3
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CurrentDepositmeansallReceiptsobtainedduringtheimmediatelyprecedingCollectionPeriodandaccountedforbythepropercompletionofthe
mostrecent7ElevenCashReportrelatingtothoseReceipts.
DownPaymentmeanstheinitialamountyouactuallypayusrelatedtotheoperationoftheStoreasstatedinExhibitD.TheDownPaymentisseparate
andapartfromtheFranchiseFee.
EffectiveDatemeansthedateyoufirstbeginoperatingtheStoreforbusinessunderthisAgreement.
ElectronicInvoicemeansanelectronicinvoiceorotherelectronicoronlinebillingsystemsinvoice.
ExcessInvestmentDrawmeansanamountpaidtoyouwhichequalstheamountbywhichyourNetWorthexceedsyourtotalassets(asreflectedonthe
balancesheetthatwepreparefortheStoreforeachAccountingPeriodfromtheBookkeepingRecords).
ExpirationDatemeanstheearlierofthedatewhichisfifteen(15)yearsfromtheEffectiveDateortheexpirationofthecurrenttermoftheleaseorthe
masterleaseontherealestate.
FinalInventorymeanstheInventoryoftheStorethatyouagreetotransfertousorathirdpartythatwedesignateupontheexpirationorterminationof
thisAgreementinaccordancewithParagraph28(a)(2)ofthisAgreement,excludinganyportionoftheInventorywhich,inoursoleandreasonableopinion,
isofatype,quantity,quality,orvarietythatisnotconsistentwiththe7ElevenImageorstandards.
FinancialSummariesmeanssummariesoffinancialinformationfortheStorethatwepreparefromtheBookkeepingRecordsintheformofincome
statements,balancesheets,reportsreflectingcreditsanddebitstoyourOpenAccount,inventoryrecordsandotherrecordsandreportsrelatingtoStore
income,expenses,profitsandlosses,assetsandliabilities.TheFinancialSummariesarepreparedinthemannerwedeemappropriateandarepreparedfor
eachAccountingPeriod.
Foodservicemeansoursystemforretailingamenuofpreparedfoodproductsandrelateditems,withsuchchangesapprovedandadoptedbyusfromtime
totime.
FoodserviceFacilitymeanstheareaorareasoftheStoreandrelated7ElevenEquipmentfromtimetotimeusedfortheFoodserviceoperation.
FoodserviceOperationsManualmeansacompilationofthe7ElevenFoodserviceStandards,whetherinelectronicorwrittenform.
FranchiseFeemeanstheinitialamountthatyouagreetopaytous,assetforthinExhibitD,inconsiderationforthegrantofthe7ElevenStorefranchise.
Franchiseemeanstheperson(s)namedastheFranchiseeonthesignaturepageandsigningthisAgreementastheFranchisee(orsubsequentlyaddedasa
Franchiseeinawritingsignedbyeachoftheparties).IfthereismorethanoneFranchisee,theywillbejointlyandseverallyliablefortheobligationsof
theFranchiseeunderthisAgreement.
FreshFoodmeansperishablefoodproductsofferedin7ElevenStores,includingsandwiches,rollergrillitems,bakedgoods,salads,foodsservedor
takenhot,dairy(includingmilk,flavoredmilk,andyogurt),bread,andanyothersimilarperishablefoodproductasreasonablydeterminedbyus
provided,however,thatanyFreshFoodcannothaveashelflifeofmorethantwo(2)weeks,unlessthroughtechnologyorothermeansthefreshnessof
theproductcanbeextendedpasttwo(2)weeks.
GrossProfitmeansNetSaleslessCostofGoodsSold.
ExhibitEPage4
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9/8/2016
HVACEquipmentmeanstheheating,ventilationandairconditioningunitandrelatedequipment,ductwork,filtersandrefrigerantgasfortheair
conditioningunit,butdoesnotincludewaterheaters,equipmentandrefrigerantgasesforrefrigeratedvaultsandcases,andotherequipmentusedin
connectionwiththesaleofInventoryfromtheStore.
InterimFinancialSummariesmeansFinancialSummariesthatweprepareduring,butnotattheendof,anyAccountingPeriod.AllcomponentsofInterim
FinancialSummarieswillbeproratedbasedonthenumberofdaysduringtheAccountingPeriodforwhichsuchInterimFinancialSummariesareprepared.
Internetmeansaglobalcomputerbasedcommunicationsnetwork.
InventorymeansallmerchandiseforsalefromtheStore,includingdepositbottles,SpecialItems,andconsignedmerchandise(otherthanconsigned
gasoline).
InventoryOveragemeanstheamountbywhichtheretailvalueoftheInventoryasreflectedbyanAuditisgreaterthanRetailBookInventory.
InventoryShortagemeanstheamountbywhichtheretailvalueoftheInventoryasreflectedbyanAuditislessthantheRetailBookInventory.
InventoryVariationmeansanyInventoryOverageorInventoryShortage,adjustedfromretailvaluetocostasspecifiedinExhibitD.InventoryVariation
isdebitedorcredited,asapplicable,toOperatingExpenses.
LeasemeansourleasetoyouoftheStoreandadjoiningpropertyasdescribedinExhibitA,and,separately,the7ElevenEquipment.Exceptasotherwise
providedinthisAgreement,ifanallocationofthe7ElevenChargetotheleaseof7ElevenEquipmentisrequiredbylaworordinance,orfortaxation
purposes,theamountofthe7ElevenChargeallocabletotheleaseofthe7ElevenEquipmentwillbeequaltothemonthlystraightlinedepreciationofthe
7ElevenEquipment,unlessprovidedotherwiseelsewhereinthisAgreement.
LeaseholdRightsmeansourrightstopossessionoftheStoreunderanypreexistingorsubsequentleaseoftheStore,whetherpursuanttothecurrentterm
ofalease,anoptionweexercise,orourrenegotiationofthelease.Wehavenoobligationtoexerciseanyoptionsorothercontractualrights,orotherwise
enterintoanyagreementforthepurposeofretainingLeaseholdRights.
MaintenanceContractsmeanscontractsthatyouarerequiredtoobtainwithreputablefirmsformaintenanceandrepairoftheStoreand7Eleven
Equipmentand,ifweconsideritappropriateornecessary,forthelandscapedareasoutsidetheStoreasprovidedinParagraph20(b).
MarketBasketBasismeansavendorsstandardproductmixthatmeetsourStorespurchaseneeds(excludingProprietaryProducts),andissoldunder
termsthatincludeabalancedcomparisonofpaymenttermsandmethods,instoreservices,productmix,servicearea,frequencyofdeliveryanddelivery
windows.
MaterialBreachmeansthosebreachesofthisAgreementspecificallysetforthinParagraph26orabreachofanyamendmenttothisAgreement.
MinimumNetWorthmeanstheminimumamountofNetWorththatyouagreetomaintaininaccordancewithParagraph13(d).
ExhibitEPage5
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MonthlyDrawmeansanamountequalto70%ofthetotalincreaseinNetWorthoverthethree(3)AccountingPeriodsimmediatelybeforethedateupon
whichMonthlyDrawiscalculated,dividedbythree,minusanyamountsreflectedonyourmostrecentBookkeepingRecordsasdistributionstoyouof
additionaldraw,unauthorizeddraworExcessInvestmentDrawprovidedhowever,youwillnotbeentitledtoaMonthlyDrawifitwillresultinreducing
inyourNetWorthtoanyamountbelowtheMinimumNetWorthrequiredpursuanttoParagraph13(d)ofthisAgreement.
NetSalesmeansthetotalvaluechargedtocustomersandreceivedbytheStoreforthesaleofInventoryandallotherproductsandservicessold,except
(a)salestaxand(b)thevalueofthoseproductsandservicesforwhichyouearnacommissionorfee,providedthatNetSaleswillincludethevalueofsuch
commissionsorfeesbutwillnotincludethevalueofcommissionsthatyoureceiveforthesaleofgasoline.
NetWorthmeansthedifferencebetweentheStorestotalassetsandtheStorestotalliabilities,allofwhichareasreflectedonthebalancesheetthatwe
preparefortheStoreeachAccountingPeriodasderivedfromtheBookkeepingRecords.
OnLineSystemsSupportGuidemeansouronlineconfidentialsupportguidecontainingtrainingandinformationalmaterialrelatedtotheoperationof
a7ElevenStore,includinganyadditionsto,deletionsfromorrevisionsoftheOnLineSystemsSupportGuide.
OpenAccountmeansanaccountthatweagreetoestablishandmaintainforyouaspartoftheBookkeepingRecords.Referencestodebits(charges)to
theOpenAccountinthisAgreementmeanincreasesintheamountsyouoweus(forexample,whenwepayavendorsinvoiceonyourbehalftheOpen
Accountisdebitedorcharged)andcreditstotheOpenAccountmeandecreasesintheamountsyouoweus(forexample,whenReceiptsaredepositedin
theBank,suchamountiscreditedtotheOpenAccount).
OperatingExpensesmeanstheexpenses(orcredits)youincurinoperatingtheStorefor:(a)payroll(b)payrolltaxes(includingunemployment,workers
compensation,payrollinsurance,andsocialsecuritycontributions)(c)InventoryVariation(d)CashVariation(e)maintenance,repairs,replacements,
laundryexpense,andjanitorialservices(f)telephone(g)Storesupplies,includinggrocerybagsandotherStoreuseitems(h)governmentalfeesand
othersfeesorcostsforlicenses,permits,andbonds(i)interest(j)returnedchecks(k)inventoryandbusinesstaxes(l)badmerchandisecausedbyyouor
youremployees(m)AdvertisingFeesandotheradvertisingand(n)othermiscellaneousexpenditureswhichwe(inourreasonablejudgmentand
regardlessoftheclassificationbyyouortheInternalRevenueService)determinetobeOperatingExpenses.
ProprietaryProductsmeansproductsorserviceswedevelopordesignatewhichare:(i)uniquetousbecauseoftheir(a)ingredients,(b)formulas,(c)
manufacturingordistributionprocesses,orthemannerinwhichtheyarepresentedormarketedtoconsumersand(ii)whichwesupportandcontrol
through(a)trademarksand/orpackagingthatbearsoneormoretrademarks,anyofwhichareownedbyorlicensedtous,(b)copyrights,(c)qualitycontrol,
and/or(d)advertising..ThecurrentlyrequiredProprietaryProductsarelistedonExhibitGtothisAgreement.
PurchasesmeansallyourpurchasesofInventoryforsalefromtheStore.
ReasonableandRepresentativeQuantitymeanstheminimumnumberofunitsforeachSKUthatyouarerequiredtocarryasspecifiedbyusfromtimeto
time.Aftertheinitialorderofanyparticularproduct,suchquantitymaybeadjusteduponthemutualagreementbyyouandourlocalrepresentativebased
on
ExhibitEPage6
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informationfromsalesoftheinitialInventoryofsuchproductusingthe7ElevenStoreInformationSystem.
Receiptsmeansallsalesproceeds(whethercash,check,creditinstrument,orotherevidenceofreceipt),commissionrevenuesonitemsforwhichyouearn
acommission(e.g.,lotteryticketsandmoneyorderblanks),discountsorallowancesyoureceive,andmiscellaneousincome(includingrentals,royalties,
fees,commissionsandamountsyoureceivefromonsitecurrencyoperatedmachines)andthevalueofpremiumsreceivedfromyouroperationoftheStore.
(Receiptsfromonsitecurrencyoperatedmachinesareconsideredreceivedatthetimetheproceedsarecollectedfromthemachine).
RecommendedVendor(s)arethoseBonaFideSuppliersdescribedinParagraph15(h)andwhicharelistedonthe7ElevenIntranet.Thelistof
RecommendedVendorsmaybechangedfromtimetotime.
RecommendedVendorPurchaseRequirementmeansyouagreetopurchaseatleasteightyfivepercent(85%)ofyourtotalPurchasesand,separately,
eightyfivepercent(85%)ofyourcigarettepurchases,bothcomputedmonthlyatcost,fromRecommendedVendors.Nopurchasewillbecreditedtowards
yourRecommendedVendorPurchaseRequirementunlessthepurchaseisfromaRecommendedVendorwehaveapprovedandyourpurchasewasmade
fromsuchRecommendedVendorinitscapacityasaRecommendedVendorwhichincludescompliancewithourrequirementsforRecommendedVendors,
includingtherecommendedmethodofdistribution.ThecostvalueusedtocalculatethepercentofPurchasesandcigarettepurchasesfromRecommended
Vendorswillonlyincludecostasreflectedonvendorinvoices.Costforpurposesofcalculatingthisrequirementwillexcludeallowances,rebatesand
discountsnotreflectedonvendorinvoices.InordertocounttowardsyourRecommendedVendorPurchaseRequirement,theproductsmustbeorderedand
paidforthroughourrecommendedmethodfororderingandpayingforthatvendor.Notwithstandingtheabove,yourPurchasesofproductsfromnon
RecommendedVendorswillbedeemedtobepurchasesfromRecommendedVendorsifyouprovideuswithwrittensubstantiationthat:(i)youordereda
productcarriedbyaRecommendedVendorandwereadvisedinwritingbythatRecommendedVendorthatsuchproductwasoutofstockor(ii)you
purchasedproductsorservicesfromanonRecommendedVendorthatwerealsoavailablefromaRecommendedVendor,andthenonRecommended
VendorprovidedwrittenevidenceofabonafideoffertosellonaMarketBasketBasistoall7Elevenstoresinthegeographicareaservicedbythe
RecommendedVendorallproductsorservicesthatareavailablefromtheRecommendedVendor,onaMarketBasketBasis,atalowercostthanthe
RecommendedVendor.Forexample,ifaRecommendedVendorhasmadeabonafideoffertosellagroupofproductsorservicestoall7Elevenstoresin
theRecommendedVendorsserviceareaatspecificprices,thenonRecommendedVendormustmakeasimilarbonafideoffertosellallproductsthatare
availablefromtheRecommendedVendor,onaMarketBasketBasistoall7Elevenstoresinthesamegeographicarea,atalowercostthanthe
RecommendedVendor.
RelatedTrademarksmeansthetrademarks,servicemarks,tradenames,tradedressandothertradeindicia,exceptfortheServiceMark,whichwemay
authorizeyoutousefromtimetotimeaspartofthe7ElevenSystem.RelatedTrademarksalsoincludesallothercombinationsofthewordornumeral
7andthewordornumeralEleven,inanylanguage,otherthanthosecomprisingtheServiceMark.Forexampleonly,RelatedTrademarksincludethe
trademarksBIGGULPandBIGBITE,aswellasthedistinctivetradedressof7ElevenStores.
RetailBookInventorymeansthebookInventorymaintainedaspartoftheBookkeepingRecordswhichreflectstheretailvalueoftheInventory.Wewill
initiallydeterminetheRetailBookInventorybyanAuditoftheinitialInventory.Afterthat,wewilladjusttheRetailBookInventoryby:(a)addingthe
retailvalue(basedonyourthencurrentretailsellingprices)ofsubsequentPurchases(otherthangasoline)(b)subtractingNetSalesofitemsreflectedin
theRetailBookInventory(c)addingorsubtractingtheretailvalueofallretailsellingpriceincreasesordecreasesofitemsreflectedintheRetail
ExhibitEPage7
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9/8/2016
BookInventory,asreportedbyyoutous,ordeterminedfromsurveysoftheInventorybyus(d)subtractingtheincludedretailvalueofanymerchandise
usedasStoresuppliesandoutofdatedatecodedmerchandiseormerchandisewhichisdamagedordeterioratedasreportedbyyoutousandverifiedby
usand(e)subtractinganyInventoryShortageoraddinganyInventoryOverage.WewilldeterminetheRetailBookInventoryatexpirationortermination
ofthisAgreementbyanAuditweconduct.WewillappropriatelyadjusttheRetailBookInventorytoreflecttheresultsofeachbindingAudit.Forthe
initialAuditandtheAuditonexpirationortermination,wewilldeterminetheretailvalueoftheInventoryatourthencurrentsuggestedretailselling
prices.ForanyotherAudit,wewilldeterminetheretailvalueoftheInventoryatyourthencurrentretailsellingprices.
RetailMethodmeansamethodofinventoryvaluationwherebyinventorytransactionsandtheperpetualinventoryrecordsaremaintainedusingretail
valuesandthetotalretailvalueofinventoryisconvertedtocostusingacostcomplementpercentage.ForpurposesofthisAgreement,thepercentageto
convertretailvaluetocostvalueisassetforthinExhibitD.
RobberymeansthetheftofReceiptsand/orCashRegisterFund(otherthanaSafeRobbery),Inventory,orStoresuppliesfromyou,youragentsor
employeesbyactsorthreatofviolenceintheStorewhileReceiptsand/orCashRegisterFundarebeingtransporteddirectlyfromtheStoretotheBank
betweentwo(2)ormore7ElevenStoresfranchisedbyyouwhileinroutetotheBankandinthepresenceofyou,youragentsoremployees,ifnot
committedbyyouoryouragentsoremployees.
SafeBurglarymeansthetheftofReceiptsorCashRegisterFundfromavault,safe,orsecuritydropboxintheStoreandapprovedbyusduringaperiod
oftimewhentheStoreisclosedaspermittedbythisAgreementandwhenalldoorsoftheStoreandofthevault,safe,orsecuritydropboxareclosedand
lockedandentryisbyactualforceevidencedbyvisiblemarksmadebytools,explosives,electricity,orchemicalsifnotcommittedbyyouoryouragents
oremployees.
SafeRobberymeansthetheftofReceiptsfromavault,safe,securitydropbox,orvendingtubesinasafeintheStoreandapprovedbyusbyactsorthreat
ofviolencecommittedinyoupresenceorthepresenceofyouragentsoremployees,ifnotcommittedbyyouoryouragentsoremployees.
SecurityAgreementmeansasecurityagreementsubstantiallyintheformattachedtothisAgreementasExhibitI.
ServiceMarkmeanstheservicemarklogoanddesignregisteredintheUnitedStatesPatentandTrademarkOffice(asRegistrationNo.920,897)andthe
7ElevenservicemarkregisteredintheUnitedStatesPatentandTrademarkOffice(asRegistrationNo.798,036).
7ELEVEN,7Eleven,we,us,andourmeans7Eleven,Inc.,aTexascorporation.
7ElevenChargemeansanamountequaltothepercentageofGrossProfitspecifiedinExhibitD.
7ElevenEquipmentmeansallpiecesofequipmentandrelateditems,whethermechanical,electronicorotherwise,leasedorotherwiseprovidedbyusto
you,includingthe7ElevenStoreInformationSystemandanyotherequipmentprovidedbythirdparties.
7ElevenFoodserviceStandardsmeansmandatoryandsuggestedquality,foodserviceandotherreasonableoperatingstandardsasmayfromtimetotime
beestablishedbyusandsetoutintheFoodserviceOperationsManual.
ExhibitEPage8
60/80
9/8/2016
7ElevenImagemeanstheacceptance,reputationandgoodwillachievedbyusandourfranchiseesintheU.S.andelsewherethatisrepresentedbythe
ServiceMark,andtheRelatedTrademarksfor7ElevenStoresoperatedpursuanttothe7ElevenSystemandtheproductsandservicesofferedinthem.
7ElevenIntranetisourrestrictedglobalcomputerbasedcommunicationsnetwork.
7ElevenPayrollSystemmeansoursystemforrecording,preparinganddistributingpayrolltoyouand/oryouremployees.
7ElevenStoreInformationSystemmeanstheproprietaryelectronicstoreoperationssystemthatprovidesforscanning,orderingandcompletingother7
ElevenStoreoperationsrelatedtasks.The7ElevenStoreInformationSystemincludesPOSscanners,computersandanyotherhardwareweuseandall
softwareassociatedwithit,includinganyreplacementormodifiedcomputerorotherelectronicsystemusedinconnectionwith7ElevenStoreoperations.
7ElevenSystemmeansthesystemforthefixturization,equipping(includingthedevelopmentanduseofcomputerinformationsystemshardwareand
software),layout,merchandising,promotion(sometimesthroughproductsorservicesconsistingof,includingoridentifiedbytrademarks,servicemarks,
tradenames,tradedresssymbols,othertradeindicia,copyrightableworks,includingadvertisingownedorlicensedbyus),andoperationofextendedhour
retailstoresoperatedbyusorourfranchiseesintheU.S.andelsewhereandidentifiedbytheServiceMarkandtheRelatedTrademarks.The7Eleven
Systemprovidesbeverages,nonfoodmerchandise,specialtyitems,variousservices,takeoutfoods,dairyproductsandgroceries,andemphasizes
conveniencetothecustomer.Wehavedevelopedthe7ElevenSystemandarecontinuallyrefining,modifyingandupdatingtheSystembasedon
experienceandnewdevelopmentstomeetandservethepreferencesofthecustomer.Thedistinguishingcharacteristicsofthe7ElevenSystemincludeuse
oftheServiceMarkandRelatedTrademarks,distinctiveexteriorandinteriordesign,decor,colorscheme,andfurnishingsstandards,specifications,
policiesandproceduresforoperationsqualityanduniformityofproductsandservicesofferedproceduresforinventory,managementandfinancial
controltrainingandassistanceandadvertisingandpromotionalprograms,allofwhichmaybechanged,deleted,improved,andfurtherdevelopedbyus
fromtimetotime.
SKUmeansstockkeepingunit,thecommonunderstandingforindividualitemsofmerchandise,eachwithauniqueUniversalProductCode.
SpecialItemsmeansthecontainers,ingredients,condiments,andotheritemsusedorfurnishedinconnectionwiththepreparationorsaleofaspecific
productandsodesignatedbyus.WereservetherighttodeterminewhichSpecialItemswillbeincludedinthemonthlyInventory.AllSpecialItemswillbe
inventoriedandaccountedforuponterminationorexpirationofthisAgreement.
Storemeansthe7ElevenconveniencestoredescribedonExhibitA.
SystemTransactionAmountsmeansamountsthatvendorsorotherspayusorthirdpartiesfortheuseofthe7ElevenStoreInformationSystemordata
collectedbythe7ElevenStoreInformationSystemoranyreplacementormodifiedcomputerinformationsystemusedinconnectionwithStoreoperations.
WherethethirdpartyisaRecommendedVendor,wewillobtainSystemTransactionAmountsonlyifsuchvendorrepresentstousinwritingthat(a)the
vendorwillnotincreasethecostofservicesandproductsto7ElevenStorestorecouptheSystemTransactionAmountspaid,and(b)thevendorwouldnot
applytheSystemTransactionAmountstolowerthecostofgoodsforservicesandproductssoldto7ElevenStores.
TermmeanstheinitialtermofthisAgreementassetforthinParagraph9.
ExhibitEPage9
61/80
9/8/2016
TradeSecretsmeanstheOnLineSystemsSupportGuidethe7ElevenSystemallmanuals,directives,forms,informationandmaterialsincludedinthe
7ElevenSysteminanyform,whetherelectronicorotherwise.TheTradeSecretsarerestrictedproprietaryinformationandareoursoleproperty.TheTrade
Secretsareexclusivelyforourbenefitandthebenefitofourfranchisees.
TransferringFranchiseemeansafranchiseewhoisexecutingafranchiseagreementasaresultofchoosingaTransfer(asdefinedinParagraph25ofthis
Agreement)undertheprovisionsofa7ElevenStoreFranchiseAgreementoranamendmenttoa7ElevenStoreFranchiseAgreement.
24HourOperationmeansyouroperationoftheStore24hoursaday,7daysaweek(except,atyouroption,Christmasday).
WeeklyDrawmeanstheamountthatweagreetoremittoyouonceeveryweekindicatedinsubsection(h)inExhibitD.
WholesaleVendormeansaBonaFideSupplierwhoregularlysuppliesmerchandiseorprovidesservicestoconvenienceorsimilarstores.
WithdrawalNoticemeansthenoticethatweagreetoprovideyoupursuanttoParagraph26(d)ifwedeterminetoceaseoperationofall7ElevenStoresin
thegeographicmarketareainwhichyourStoreislocated.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitEPage10
62/80
9/8/2016
EXHIBITF
SURVIVORSHIP
7ELEVENSTORENO.
NotwithstandinganythingintheFranchiseAgreementortheExhibitstotheFranchiseAgreementtothecontrary:
l.AsusedinthisSurvivorshipAgreement,DeathoftheFranchiseemeansthedeathoftheindividualFranchisee,ifthereisonlyoneFranchiseeor,ifthere
ismorethanoneFranchiseeundertheFranchiseAgreement,thesimultaneousdeathofalltheFranchiseesasdefinedbelow.IfaDeathoftheFranchisee
occurs,weagreetooperatetheStoreforthebenefitoftheFranchiseesestatefromtheperiodbeginningontheDeathoftheFranchiseeandendingonthe
earliestofthefollowingevents:
(a)ThesaleofthefranchisebytheestateandmutualterminationoftheFranchiseAgreementinaccordancewiththetermsofthisSurvivorship
AgreementandtheFranchiseAgreement
(b)TheEffectiveDateofanew7ElevenStoreFranchiseAgreementwithadesignatedindividualasprovidedinthisSurvivorshipAgreementor,
(c)Theexpirationof30days,oranylongernoticeperiodprovidedintheFranchiseAgreement.Ifanyoftheseeventsoccur,theFranchiseAgreement
willterminateasprovidedinthisSurvivorshipAgreement.SimultaneousdeathofalltheFranchiseesmeansthedeath,withina72consecutivehour
period(whetherornotthedeathsarisefromthesamecasualtyoroccurrence)ofalltheindividualswhoexecutedtheFranchiseAgreementand/orwere
subsequentlyaddedasFranchisee(s)inawritingsignedbytheparties.
TheNoticePeriodistheperiodbeginningwiththeDeathoftheFranchiseeandendingupontheoccurrenceofoneoftheabovereferencedevents.Ifa
DeathoftheFranchiseeoccurs,thenforanyAccountingPeriodduringtheNoticePeriod,wewillnotchargetheOpenAccountforInventoryVariation,
payrollorpayrolltaxes(includingyourdrawamount)anamountmorethantheaverageexperienceoftheStoreforthecategoryinquestionforthethree
calendarmonthsbeforetheDeathoftheFranchisee(oranyshorterperiodtheFranchiseAgreementwasineffect).WeagreetoindemnifytheFranchisees
estatefromanyclaimswhichariseduringthisperiodandpayanybalancedueyoufromustotheFranchiseesestateinaccordancewiththeFranchise
Agreement.
2.Youmaydesignateinwritingandnotifyusof(pursuanttothenoticeprovisionintheFranchiseAgreement)uptothreeindividuals,listedalternatively
andinorderofpreference,whomyoubelievequalifiedtofranchisetheStoreaftertheDeathoftheFranchiseeandeachofwhomindividuallywouldlike
theopportunitytodoso.YouacknowledgeandagreethatwewilloffertheopportunitytofranchisetheStoretooneindividual(andhisorherspouse)only,
andthatwewillmakethisoffertooneindividualatatime,inaccordancewiththeorderinwhichyoudesignatedtheindividualsonthenoticeyou
providedtous.Tobeeffective,thenoticeofdesignationmustbeeitherpersonallydeliveredorpostmarkednotlaterthanonedaybeforethedateofthe
DeathoftheFranchisee.Youmaychangethedesignationinwritingtous,effectiveuponreceipt,uptothedaybeforethedateoftheDeathofthe
Franchisee.
Ifyouhavedesignatedindividualsinthisway,then,aftertheDeathoftheFranchisee,weagreetopromptlyattempttolocateandarrangeaninterviewwith
thedesignatedindividualandwewilladvisetheestatewhetherornotthatdesignatedindividualhasbeenlocatedandisqualifiedinaccordancewithour
ExhibitFPage1
63/80
9/8/2016
thencurrentqualificationprocedures.Ifmorethanoneindividualisdesignatedandthefirstdesignatedindividualcannotbereasonablylocated,isnot
qualifiedunderourthencurrentqualificationproceduresorisnotinterestedinobtainingafranchisefortheStore,weagreetoattempttolocateand
determinethequalificationsandinterestoftheseconddesignatedindividual,andlikewiseforthethirdindividual,ifnecessary,andwewilladvisethe
estateaccordingly.
If,beforetheNoticePeriodexpires,oneofthedesignatedindividualsqualifiesandwishestofranchisetheStoretheestateagreeswithustomutually
terminatetheFranchiseAgreementtheestatewaives(inaformsatisfactorytous)anyclaimitmayhavetosellthefranchisetheestatepaysormakes
arrangementssatisfactorytousforpaymentofanyamountdueusundertheFranchiseAgreementand,iftheFranchiseeisacorporation,thedesignated
individualacquiresownershiporcontrolofalloftheauthorized,issuedandoutstandingsharesoftheFranchiseecorporation,thenweagreetosignanew
7ElevenStoreFranchiseAgreementfortheStoreinthethencurrentformwiththedesignatedindividual.Inaddition,iftheFranchiseeisacorporation,
afterthedesignatedindividualhasacquiredownershiporcontrolofalloftheauthorized,issuedandoutstandingsharesoftheFranchiseecorporationand
signedanew7ElevenStoreFranchiseAgreementfortheStoreinthethencurrentform,wewillhavethenew7ElevenStoreFranchiseAgreementassigned
totheformerFranchiseecorporationoranothercorporationnamedbythedesignatedindividual,ifallourthencurrentconditionsforassignmenthave
beensatisfied.WeagreenottochargeanyFranchiseFee.TherewillbenochangeinthefinancialtermsfromthoseintheFranchiseAgreementuntilthe
expirationdateoftheoriginalFranchiseAgreementifithadnotterminatedearlier.AttheexpirationdateoftheoriginalFranchiseAgreement,thefinancial
termsinthenew7ElevenStoreFranchiseAgreementexecutedbythedesignatedindividualwillbecomeeffectivefortheremainderofthetermofthethen
effectiveFranchiseAgreement.
3.If,beforetheNoticePeriodexpires,neitherofthefirsttwoeventsspecifiedinParagraph1(a)and(b)aboveoccursandtheestatedeliverstousawritten
requestindicatingthatitdesirestoarrangeasaleofthefranchiseandhasmadeandwillcontinuetomakegoodfaitheffortstofindaqualifiedpurchaser
andtheestatepaysormakesarrangementssatisfactorytousforthepaymentofanyamountdueusundertheFranchiseAgreement,thenweagreetogive
theestatetheopportunitytoarrangeasaleofthefranchiseforatotalof120daysfromtheDeathoftheFranchisee(includingtheNoticePeriod).Weagree
nottorefranchisetheStoreduringthattimeunlesstheestatewaivesinwritinganyclaimitmayhavetosellthefranchise,eventhoughtheFranchise
Agreementhasterminated.However,fromthe31stthroughthe120thday,wewilloperatetheStoreforourbenefitalone.
4.Oneofourofficersmustreviewandapproveanyarrangementbetweenusandtheestate,includingapplicationofthetermsofthisSurvivorship
Agreement,beforethearrangementcanbeimplemented.
5.Asconsiderationofourallowingyoutodesignateasuccessortoyourinterest,andasaconditionbeforeweagreetobeboundbythetermsofthis
SurvivorshipAgreement,youagreewithus:
(a)Thatnotwithstandinganyprobateorestateadministrationproceedingsinvolvingyouoryourstate,ordisputesby,amongorbetweenyour
designees,heirs,legatees,beneficiaries,successorsininterestorthelike,thetimelimitsestablishedbythetermsofthisSurvivorshipAgreementwill
controlandgovernourobligationsandtherightsofanypartyarisingfromthetermsofthisSurvivorshipAgreement,and
(b)ThatifadisputearisesconcerningthedispositionofthefranchisepursuanttothisSurvivorshipAgreementand/ortheFranchiseAgreement,and
thedisputeinvolvesusorourrightsorobligations,thenanyexpenseswereasonablyincurinthatdispute,includingattorneysfeesandcourtcosts,will
eitherbebornebytheOpenAccountoryourestate,orboth(atouroption).
ExhibitFPage2
64/80
9/8/2016
6.Youagreethat,iftheFranchiseeoperatesmorethanone(1)7ElevenStore,thesurvivorshiprightscontainedinthisSurvivorshipAgreementwillapply
toonlyone(1)ofFranchisees7ElevenStores,notwithstandingthefactthatanagreementthesameasorsimilartothisSurvivorshipAgreementmayhave
beensignedinconnectionwiththeexecutionof7ElevenStoreFranchiseAgreementsforeachofFranchisees7ElevenStores.
ExceptfortermsdefinedinthisSurvivorshipAgreement,thetermsusedinthisSurvivorshipAgreementwillhavethemeaningsdefinedintheFranchise
Agreement.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitFPage3
65/80
9/8/2016
EXHIBITG
REQUIREDPROPRIETARYPRODUCTS
FollowingisalistoftheProprietaryProductsthatyouarerequiredtocarryintheStoreatalltimes.Wemaydeleteanyoftheseitemsoraddanynewitems
atanytimeuponreasonablenotice.
Product
DescriptionandPresentation
SLURPEE:FrozenCarbonatedBeverage
Frozencarbonatedbeverage,preparedwithavarietyofhighquality
syrups,properlymixed,andservedinstandardized,trademarkedcups.
Candy,gum,frozentreatsandotherproductspreparedusing7Eleven
approvedspecificationsandpackagedusingSLURPEEMarks
Fountainsoftdrinkbeverages,preparedwithavarietyofhighquality
syrups,properlymixed,andservedinstandardized,trademarkedcupsand
mugsofvarioussizes.
Freshbrewedcoffee,preparedwiththe7Elevenregionallyapproved
coffeeblend,andservedinstandardized,trademarkedcoffeecupsof
varioussizes.
Highquality,allbeefhotdog,preparedusingspicemixapprovedbyus,
offeredinboth8:1lb.and1/4lb.sizes,andservedinstandardized,
trademarkedhotdogcontainers.
HighqualitylineofMexicansnackingproducts,withproprietaryfillings
wrappedinsideatortilla,servedfromthegrillinastandardized,
trademarkedbag.
SLURPEE:candy,gum,frozentreatsotherproducts
GULP,BIGGULP,SUPERBIGGULP,XTREMEGULP,DOUBLE
GULP:beverages
7ELEVEN:coffee
BIGBITE
POUNDBIGBITE
BIGGESTBIGBITE
7ELEVENGOGOTAQUITOS:snackproduct
7ELEVENSPEAKOUT
CONNECTIONSFROM7ELEVEN
7ELEVENVALUE+
7ELEVENCONVENIENCECARD
PrepaidCardsandStoredValueCards
Prepaidlongdistance,wirelessandlocaltelephoneproductsandstored
valueproductswithtrademarked7ELEVENidentificationand
packagingthatisdesignatedaspartofthe7ElevenPrepaidCardor
StoredValueCardPrograms.
QUALITYCLASSICSELECTION:Water/Beverages
Highquality,proprietarytrademarkedbottledspringwater,sparkling
water,softdrinksinvarioussizes.
Highquality,proprietaryrecipe,BIGEATSDELIbrandedproducts,and
othercommissaryproducedproducts,displayedinstandardizedand
trademarkedpackaging.
Highquality,proprietaryandotherfreshbakedgoodsdeliveredthrough
theCDC.
Highqualitynachochipsservedinstandardized,trademarkedNacho
trays.
BIGEATSDELI:foodproducts
BIGEATSBAKERYproducts
7ELEVENNachos:chips
ExhibitGPage1
66/80
9/8/2016
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitGPage2
67/80
9/8/2016
EXHIBITH
RELEASEOFCLAIMSANDTERMINATION
1.
2.
3.
4.
5.
6.
The7ElevenStoreFranchiseAgreementbetween7Eleven,Inc.(we,us,ouror7Eleven)andtheundersignedparties(you)dated
,asamended(theAgreement)andwhichcovered7ElevenStoreNo.(theStore)isherebyterminatedeffectivea.m./p.m.
on,20,
Youandweherebymutuallyagreethat,exceptasspecificallyprovidedbelow,allclaims,demands,rights,duties,guarantees,obligations,debts,
dues,sumsofmoney,accounts,covenants,contracts,controversies,agreements,promises,torts,judgments,executions,liabilities,damages,
injunctions,assignments,suitsorcausesofaction(collectively,theclaims)ofeverykindandnature,however,orwhereverarising,whetherknown
orunknown,foreseenorunforeseen,direct,indirect,contingentoractual,liquidatedorunliquidated,whichhavearisenorwhichmightorcouldarise
underfederal,state,orlocallawfromanyrelationship,incident,ortransactionarisingoroccurringundertheAgreementorunderanyagreementin
connectiontherewith,orfromtheexecution,operationunderorterminationoftheFranchiseAgreement,andanyservicesprovidedtoyouunderthe
FranchiseAgreementorunderanyotheragreementrelatingtotheStore,existingorarisingatanytimebeforeoratthetimeoftheexecutionofthis
Agreement,areherebymutuallysatisfied,acquitted,dischargedandreleasedbyyouandusonyourandourbehalfandonthebehalfofanyperson
claimingunderorthroughyouorus,itbeingtheexpressintentionofyouandusthatthisreleasebeasbroadaspermittedbylaw.
YouintendthereleasecontainedinParagraph2toacquitandforeverfullydischargeus,anyparentofoursandanyofourorourparentsdirector
indirectsubsidiaries,divisionsorAffiliatesandour,itsandtheirrespectiveofficers,directors,shareholders,partners,agents,employees,heirs,legal
representatives,successorsandassigns.
IfyouareinCalifornia,thepartiesexpresslywaiveandrelinquishallrightsandbenefitswhicheithermaynowhaveorinthefuturehaveunderand
byvirtueofCaliforniaCivilCodeSection1542.Thepartiesdosounderstandingthesignificanceandconsequenceofsuchspecificwaiver.Section
1542providesthat[a]generalreleasedoesnotextendtoclaimswhichthecreditordoesnotknoworsuspectexistinhisfavoratthetimeof
executingtherelease,whichifknownbyhimmusthavemateriallyaffectedhissettlementwiththedebtor.Forthepurposeofimplementinga
generalreleaseanddischargeasdescribedinParagraph2above,thepartiesexpresslyacknowledgethatthisReleaseofClaimsandTermination
AgreementisintendedtoincludeinitseffectallclaimsdescribedinParagraph2abovewhichthepartiesdonotknoworsuspecttoexistintheir
favoratthetimeofexecutionhereof,andthatthisReleaseofClaimsandTerminationAgreementcontemplatestheextinguishmentofanysuch
claims.
YouandwerepresentandwarrantthattheexecutionofthisReleaseofClaimsandTerminationAgreementisfreeandvoluntary,andthatno
inducements,threats,representationsorinfluencesofanykindweremadeorexertedbyoronbehalfofeitherparty.
Thisreleasewillbebindinguponyouandusanduponyourandourrespectiveheirs,legalrepresentatives,successorsandassigns.Thisreleaseis
intendedtobemutualandreciprocal,anditwillbeeffectiveagainstonepartyonlyifitiseffectiveagainstbothparties.Youandweacknowledge
thatthisReleaseofClaimsandTerminationAgreementwillbeacompletedefensetoanyclaimreleasedunderthetermsofParagraph2.
ExhibitHPage1
68/80
9/8/2016
7.
8.
9.
10.
Youandweeachrepresentandwarranttotheotherthatweandyouhavenotassignedandwillnotassigntoanyotherpartyanyoftheclaims
releasedbythisReleaseofClaimsandTerminationAgreement.
NOTWITHSTANDINGANYOFTHEFOREGOING,THISRELEASEDOESNOTINCLUDEanyamounts(1)debitedorcreditedtoyouafterthedate
ofthisReleaseofClaimsandTerminationAgreement,or(2)owingtoeitherparty(theFinalSettlement)asreflectedonthefinalFinancial
Summariespreparedbyus.YouacknowledgethatallFinancialSummariespreparedtothedateofthisReleaseofClaimsandTerminationAgreement
aretrueandcorrectandthatthisreleaseincludesallclaimsaffectingthefiguresstatedinsuchFinancialSummaries.YourendorsementofaFinal
SettlementcheckdeliveredtoyouafterthepreparationofthefinalFinancialSummariesacknowledgesyourreleaseofallclaimsaffectingthefigures
statedonyourfinalFinancialSummaries.
FURTHERNOTWITHSTANDINGANYOFTHEFOREGOING,thisreleasedoesnotinclude(1)anyclaimthatyoumayhaveagainstanypersonor
entityotherthanus,ourparent,subsidiaryorAffiliatedentities,andtheirrespectiveofficers,directorsandemployees(2)anyindemnityclaimthat
youmayhaveagainstuspursuanttotheindemnificationprovisionsoftheFranchiseAgreementwhenyouaresuedbyathirdpartyforactsor
omissionsoccurringduringyouroperationoftheStoreand(3)anyrightsthatyouhavetopaymentsfromusdeterminedunderExhibitJ.
FURTHERNOTWITHSTANDINGANYOFTHEFOREGOING,IFYOUAREAMARYLANDFRANCHISEE,THISRELEASEDOESNOTINCLUDE
ANYCLAIMSPERTAININGOURALLEGEDFAILURETOCOMPLYWITHTHEMARYLANDFRANCHISEREGISTRATIONANDDISCLOSURE
LAW.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitHPage2
69/80
9/8/2016
EXHIBITI
SECURITYAGREEMENT
THISSECURITYAGREEMENT(theSecurityAgreement),dated,20,isexecutedbytheundersigneddebtorFranchisee(s)jointly
andseverallyifmorethanone(suchdebtor(s)arereferredtoindividuallyorcollectivelyasyouoryour),toandforthebenefitof7Eleven,Inc.(we,
usorour).
RECITALS
A.PursuanttoaStoreFranchiseAgreement,dated,20(theFranchiseAgreement),betweenyouandus,wehave,amongother
things,agreedtomakeloansandotherfinancialaccommodationstoyouuponthetermsandsubjecttotheconditionssetforthintheFranchiseAgreement.
B.OurobligationtomakesuchloansandotherfinancialaccommodationstoyouundertheFranchiseAgreementissubject,amongotherconditions,
toreceiptbyusofthisSecurityAgreement,dulyexecutedbyyou.
AGREEMENT
NOW,THEREFORE,inconsiderationoftheaboverecitalsandforothergoodandvaluableconsideration,thereceiptandadequacyofwhichare
acknowledged,youagreeasfollows:
1.DefinitionsandInterpretation.WhenusedinthisSecurityAgreementandtheAttachmentstothisSecurityAgreement,(a)thetermsEquipment,
Fixtures,Goods,Inventory,andProceeds,havetherespectivemeaningsassignedtothemintheUCC(asdefinedbelow)(b)capitalizedtermswhicharenot
otherwisedefinedinthisSecurityAgreementhavetherespectivemeaningsassignedtothemintheFranchiseAgreementand(c)thefollowingtermshave
thefollowingmeanings(suchdefinitionstobeapplicabletoboththesingularandpluralformsofsuchterms):
Collateralmeans,withrespecttoyou,allofyourpropertyandrightsinwhichasecurityinterestisgrantedunderthisSecurityAgreement.
EventofDefaultmeans(i)aMaterialBreach(ii)yourfailuretoperformorobserveanyterm,promise,conditionorobligationcontainedin
thisSecurityAgreementor(iii)yourbreachofanyrepresentationorwarrantymadebyyoutousinorinconnectionwiththeStore,theFranchise
AgreementorthisSecurityAgreement.
Obligationsmeansandincludesallloans,advances,debts,liabilitiesandobligations,howsoeverarising,owedbyyoutousofeverykind
anddescription(whetherornotevidencedbyanynoteorinstrumentandwhetherornotforthepaymentofmoney),directorindirect,absoluteor
contingent,dueortobecomedue,nowexistingorarising,inthefuturepursuanttothetermsoftheFranchiseAgreementoranyotheragreementbyor
amongyouandus,and/ormodification,renewal,orextensionsofanyoftheforegoing,includingallinterest,fees,charges,expenses,attorneysfeesand
accountantsfeeschargeabletoandpayablebyyouunderthisSecurityAgreementorundertheFranchiseAgreementoranyotheragreementbyoramong
youandus,andincludingtheOpenAccountBalanceand
ExhibitIPage1
70/80
9/8/2016
anyoutstandingExcessInvestmentDraw,MonthlyDrawor7ElevenCharge,orrentalsdueunderanyLease.
Storemeans7ElevenStoreNo.locatedat.
UCCmeanstheUniformCommercialCodeasineffectintheStateofonthedateofthisSecurityAgreement,asmaybeamended
ormodifiedfromtime.
2.GrantofSecurityInterest.AssecurityfortheObligations,youpledgeandassigntousandgranttousacontinuingsecurityinterestinandlien
on,allofthepresentandhereafteracquiredGoods(includingEquipment,FixturesandInventory)heldormaintainedattheStoreorotherwiseusedinthe
ownershiporoperationoftheStoreandallProceedsthereof,andallpresentandhereafteracquiredrights,titleandinterestrelatingtotheStore,including,
butnotlimitedto,allpremiumandgoingconcernvalue,ifany,oftheStore,andyourright,ifany,toeffectapremiumsale,andallproceedsthereof,
whethernowowned,oracquiredinthefutureorarising,andwhereverlocated,includingthosetypesofpropertydescribedonAttachment1tothisSecurity
Agreement.
3.RepresentationsandWarranties.Yourepresentandwarranttousthat:
(a)Wehave(orinthecaseofafteracquiredCollateral,atthetimeyouacquirerightsintheCollateral,willhave)afirstpriorityperfected
securityinterestintheCollateral.
(b)YourchiefexecutiveofficeandprincipalplaceofbusinessareassetforthonAttachment2tothisSecurityAgreement,andeachother
locationwhereyoumaintainaplaceofbusinessisalsosetforthonAttachment2tothisSecurityAgreement.
[USEFORENTITYFRANCHISEE:(c)Youarea,dulyorganized,validlyexistingandingoodstandingunderthelawsofthe
statesetforthonAttachment2tothisSecurityAgreement,andarearegisteredorganization(assuchtermisdefinedintheUCC)insuchstate.]
[USEFORINDIVIDUALFRANCHISEE:(c)Youareanindividuallocatedin.]
(d)Youaredulyqualified,licensedtodobusinessandingoodstandinginalljurisdictionsinwhichsuchqualificationorlicensingisrequired.
(e)YourexactlegalnameisassetforthonthesignaturepagesofthisAgreement,andduringthefiveyearsprecedingthedateofthisSecurity
Agreementyouhavenotbeenknownbyanydifferentlegalnamenorhaveyoubeenthesubjectofanymergerorothercorporatereorganization.
4.Covenants.Youagreeto:
(a)Performallactsthatmaybenecessarytomaintain,continue,preserve,protectandperfecttheCollateral,thesecurityinterestgrantedtous
intheCollateralandthefirstperfectedpriorityofsuchsecurityinterest.
(b)NotuseorpermitanyCollateraltobeusedinviolationofanyprovisionoftheFranchiseAgreementorthisSecurityAgreement.
ExhibitIPage2
71/80
9/8/2016
(c)Paypromptlywhenduealltaxesandothergovernmentalcharges,allliensandallotherchargesnoworimposedinthefutureuponor
affectinganyCollateral.
(d)Without30dayspriorwrittennoticetous,not(i)changeyournameorplaceofbusiness(or,ifyouhavemorethanoneplaceofbusiness,
yourchiefexecutiveoffice),(ii)keepCollateralconsistingofEquipmentatanylocationotherthantheStoreor(iii)adoptaplanofconversionor
reorganizeunderthelawsofastateotherthanyourstateoforganizationassetforthonAttachment2tothisSecurityAgreement.
(e)IfwegivevaluetoenableyoutoacquirerightsinortheuseofanyCollateral,usesuchvalueforsuchpurpose.
(f)Takeotheractionwereasonablyrequesttoinsuretheattachment,perfectionandfirstpriorityof,andourabilitytoenforce,thesecurity
interestsinalloftheCollateral.
(g)Keepseparate,accurateandcompleterecordsoftheCollateralandmustprovideuswithsuchrecordsandsuchotherreportsand
informationrelatingtotheCollateralaswemayreasonablyrequestfromtimetotime.
(h)Notsell,encumber,lease,rent,orotherwisedisposeofortransferanyCollateralorrightorinterestinsuchCollateralexceptasexpressly
permittedintheFranchiseAgreementandyouagreetokeeptheCollateralfreeofallliens.
(i)Complywithallmateriallegalrequirementsapplicabletoyouwhichrelatetotheproduction,possession,operation,maintenanceand
controloftheCollateralandoperationoftheStore(includingtheFairLaborStandardsAct).
5.AuthorizedActionbyAgent.Youirrevocablyappointusasyourattorneyinfactandagreethatwemay,onorafteranEventofDefault,perform
(butwewillnotbeobligatedtoandwillincurnoliabilitytoyouoranythirdpartyforfailuretosoperform)anyactwhichyouareobligatedbythis
SecurityAgreementtoperform,andtoexercisesuchrightsandpowersasyoumightexercisewithrespecttotheCollateral.Youacknowledgeandagree
thatthisSecurityAgreementisanauthenticatedrecordforpurposesofUCCArticles9.509(a)and(b),andyouauthorizethefilingbyusofUCC
financingstatementsnamingyouasthedebtor(s)insuchfinancingstatements.
6.DefaultandRemedies.InadditiontoallotherrightsandremediesgrantedusbythisSecurityAgreement,theFranchiseAgreement,theUCCand
otherapplicablelaw,wemay,upontheoccurrenceandduringthecontinuanceofanEventofDefault,exerciseanyoneormoreofthefollowingrightsand
remedies:(a)forecloseorotherwiseenforceoursecurityinterestsinanyorallCollateralinanymannerpermittedbyapplicablelaw,theFranchise
AgreementorthisSecurityAgreement(b)sellorotherwisedisposeofanyorallCollateralatoneormorepublicorprivatesales,whetherornotsuch
Collateralispresentattheplaceofsale,forcashorcreditorfuturedelivery,onsuchtermsandinsuchmanneraswemaydetermine(c)requireyouto
assembletheCollateralandmakeitavailabletousataplacetobedesignatedbyus(d)enterontoanypropertywhereanyCollateralislocatedandtake
possessionofsuchCollateralwithorwithoutjudicialprocessand(e)priortothedispositionoftheCollateral,store,process,repairorreconditionany
CollateralconsistingofGoods,orotherwiseprepareandpreserveCollateralfordispositioninanymannerandtotheextentwedeemappropriate.Youagree
that10daysnoticeofanyintendedsaleordispositionofanyCollateralisreasonable.Wewillhaveno
ExhibitIPage3
72/80
9/8/2016
dutyastocollectionorprotectionoftheCollateraloranyincomeonsuchCollateral,norastothepreservationofrightsagainstpriorparties,norastothe
preservationofanyrightspertainingtopriorpartiesbeyond,inthecaseofanyCollateralinourpossession,thesamesafecustodyofsuchCollateraltothe
extentaffordedtoourproperty.AllofourrightsandremedieswhetherornotgrantedunderthisSecurityAgreementwillbecumulativeandmaybe
exercisedsingularlyorconcurrently.
7.Miscellaneous.
(a)Notices.Allnotices,requests,demands,consents,instructionsorothercommunicationstooruponyouorusunderthisSecurityAgreement
mustbeinwritingandmustbedeliveredinaccordancewiththetermsandprovisionsofParagraph31(e)oftheFranchiseAgreement.
(b)WaiversAmendments.Anyterm,promise,agreementorconditionofthisSecurityAgreementmaybeamendedorwaivedifsuch
amendmentorwaiverisinwritingandissignedbyyouandus.NofailureordelaybyusinexercisinganyrightunderthisSecurityAgreementwilloperate
asawaiverofsuchrightorofanyotherrightnorwillanysingleorpartialexerciseofanysuchrightprecludeanyotherfurtherexerciseofsuchrightorof
anyotherright.Unlessotherwisespecifiedinanysuchwaiverorconsent,awaiverorconsentgivenunderthisSecurityAgreementwillbeeffectiveonlyin
thespecificinstanceandforthespecificpurposeforwhichgiven.
(c)SuccessorsandAssignments.ThisSecurityAgreementwillbebindinguponandinuretoourbenefitandyourbenefitandtothebenefitof
ourrespectivesuccessorsandassigns,includingallpersonsandentitiesthatbecomeboundbythisSecurityAgreementprovided,however,thatyoumay
sell,assignanddelegateyourrespectiverightsandobligationsunderthisSecurityAgreementonlyaspermittedbytheFranchiseAgreement.Wemay
disclosethisSecurityAgreement,theFranchiseAgreementandanyfinancialorotherinformationrelatingtoyoutoanyassigneeorpotentialassignee.
(d)JURYTRIAL.YOUANDWE,TOTHEFULLESTEXTENTPERMITTEDBYAPPLICABLELAW,IRREVOCABLYWAIVEALLRIGHTS
TOTRIALBYJURYASTOANYISSUERELATINGTOTHISSECURITYAGREEMENTINANYACTION,PROCEEDING,ORCOUNTERCLAIM
ARISINGOUTOFORRELATINGTOTHISSECURITYAGREEMENT.
(e)CumulativeRights,Etc.Ourrights,powersandremediesunderthisSecurityAgreementwillbeinadditiontoallrights,powersand
remediesgiventousbyapplicablelaw,theFranchiseAgreementoranyotheragreement,allofwhichrights,powers,andremedieswillbecumulativeand
maybeexercisedsuccessivelyorconcurrentlywithoutimpairingourrightsunderthisSecurityAgreement.Youwaiveanyrighttorequireustoproceed
againstanypersonortoexhaustanyCollateralortopursueanyremedyinourpower.
(f)GoverningLaw,Construction.ThisSecurityAgreementwillbegovernedbyandconstruedaccordingtothelawsofthestateinwhichyou
arelocatedfromtimetotimeineffectexcepttotheextentpreemptedbyUnitedStatesfederallaw.Itisexpresslystipulatedandagreedtobeyourintent
andourintentatalltimestocomplywithapplicablelawgoverningthehighestlawfulrateoramountofinterestpayableontheObligations.Ifthe
applicablelawiseverjudiciallyinterpretedsoastorenderusuriousanyamountcalledforundertheFranchiseAgreement,orcontractedfor,charged,taken,
reservedorreceivedwithrespecttotheObligations,orifourexerciseofourremediesunderthisSecurityAgreementortheFranchiseAgreementorifany
paymentbyyouresultsinyouhavingpaidanyinterestinexcessofthatpermittedbyapplicablelaw,thenitisyourandourexpressintentthatallexcess
amountspreviouslycollectedbyusbecreditedontheprincipalbalanceoftheObligations(or,iftheObligations
ExhibitIPage4
73/80
9/8/2016
havebeenorwouldbepaidinfull,refundedtoyou),andtheprovisionsoftheFranchiseAgreementimmediatelybedeemedreformedandtheamounts
collectiblethereafterunderthisSecurityAgreementandundertheFranchiseAgreementreduced,withoutthenecessityoftheexecutionofanynew
documents,soastocomplywiththeapplicablelaw,butsoastopermittherecoveryofthefullestamountotherwisecalledforunderthisSecurity
AgreementorundertheFranchiseAgreement.Allsumspaidoragreedtobepaidtousfortheuse,forbearanceordetentionoftheObligationswill,tothe
extentpermittedbyapplicablelaw,beamortized,prorated,allocatedandspreadthroughoutthefulltermoftheObligationsuntilpaymentinfullsothat
therateoramountofinterestonaccountoftheObligationsdoesnotexceedtheusuryceilingfromtimetotimeineffectandapplicabletotheObligations
forsolongastheObligationsareoutstanding.
(g)ConflictingProvisions.TotheextentthereexistsanyconflictorinconsistencybetweenthetermsofthisSecurityAgreementandtheterms
oftheFranchiseAgreement,thetermsoftheFranchiseAgreementwillgovern.
(h)Counterparts.ThisSecurityAgreementmaybeexecutedinanynumberofidenticalcounterparts,anysetofwhichsignedbyalltheparties
tothisSecurityAgreementwillbedeemedtoconstituteacomplete,executedoriginalforallpurposes.
INWITNESSWHEREOF,youhavecausedthisSecurityAgreementtobeexecutedasofthedayandyearfirstabovewritten.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitIPage5
74/80
9/8/2016
ATTACHMENT1
TOSECURITYAGREEMENT
AllGoods(includingEquipment,FixturesandInventory)heldormaintainedontheStoreorotherwiseusedintheownershiporoperationoftheStore,
includingmoneyorderblanks,bankdraftsandstoresupplies,andallembeddedsoftware,accessions,additions,attachments,improvements,substitutions
andreplacementstosuchGoodsandforsuchGoods
AllpremiumorgoingconcernvalueofthefranchiseinterestintheStore
AlllicensesandpermitsusedinconnectionwiththeoperationoftheStoreand
Allproceedsoftheforegoing(includingwhateverisreceivableorreceivedwhenCollateralorproceedsaresold,collected,exchanged,returned,
substitutedorotherwisedisposedof,whethersuchdispositionisvoluntaryorinvoluntary,includingrightstopaymentandreturnpremiumsandinsurance
proceedsunderinsurancewithrespecttoanyCollateral,andallrightstopaymentwithrespecttoanycauseofactionaffectingorrelatingtotheCollateral).
Attachment1SoloPage
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ATTACHMENT2
TOSECURITYAGREEMENT
[CompleteforeachFranchisee]
ExactLegalName:
StateorOrganization:
TypeofOrganization:
PlaceofBusiness(or,ifmorethanone,theChiefExecutiveOffice):
Attachment2SoloPage
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9/8/2016
EXHIBITJ
ProceduresforSelectionofThirdPartyReviewerand
forReviewingVendorNegotiatingPractices
A.QualificationsandSelectionofFranchiseeSelectionCommitteeMembers:
1.Qualifications.TheFranchiseeSelectionCommitteewillbemadeupoffivefranchiseeswho,atthetimeoftheirselectionandatalltimesduring
theCommitteesdeliberations,(i)arecurrent7Elevenfranchisees(ii)arenotinbreachoftheir7Elevenfranchiseagreement(iii)arelocalFranchise
OwnersAssociationPresidents,butnotofficersofanynational7Elevenfranchiseeassociationorcoalitionofassociations(iv)agreetoservevoluntarily,
and(v)agreetobeboundbythisExhibitJ,includingthedisputeresolutionproceduressetforthinSectionC.TheFranchiseeSelectionCommitteewill
selecttheThirdPartyReviewerasprovidedinSectionB.belowandwillbeapartytoanydisputeresolutionproceedingscontemplatedbySectionD.
below.
2.Selection.TheinitialmembersoftheFranchiseeSelectionCommitteemeetingtherequirementssetforthabovewillbeselectedbytheAllowance
ReviewCommittee(ARC)establishedpursuanttothesettlementofthefollowingmatters:7ElevenOwnersforFairFranchising,etalv.TheSouthland
Corporation,etal,SuperiorCourtofAlamedaCounty,California(ASCNo.7222726OH)orClydeValente,etalv.TheSouthlandCorporation,etal,
DistrictCourtforDallasCounty,Texas(14 thJudicialDistrict)(DocketNo.9611972A).IntheeventtheARChasnotselectedallthemembersofthe
FranchiseeSelectionCommitteebyJuly1,2004,wewillselecttheinitialmembersoftheFranchiseeSelectionCommittee.
3.Replacement.AnyFranchiseeSelectionCommitteememberwho(i)resignsor(ii)nolongermeetsthequalificationssetforthinSectionA.1(i)(iv)
above,will,asofthedateofsuchoccurrence,nolongerbeamemberoftheFranchiseeSelectionCommittee.WewilladvisetheFranchiseeSelection
CommitteeoftheoccurrenceofSectionA.3.(i)or(ii)above,withinareasonabletimeafterwelearnofit.TheremainingmembersoftheFranchisee
SelectionCommittee,willpromptlyselectareplacementmember,providedthatwemayselectareplacementmemberiftheremainingmembersofthe
FranchiseeSelectionCommitteehavenotactedwithin45daysafteroneormoremembersbecomingineligibletoactasamemberoftheFranchisee
SelectionCommittee.
4.Costs.Exceptforthe$75,000percalendaryear(adjustedbasedupontheconsumerpriceindex,foreachyearafter2004)thatwewillprovide
pursuanttoParagraph15(k)forthecostsassociatedwiththeselectionoftheThirdPartyReviewerandforsuchThirdPartyReviewertoconductthereview
contemplatedbyParagraph15(k)andthisExhibitJandrelatedcosts,theFranchiseeSelectionCommitteeshallbearallcostsandexpensesincurredbyit
relatingtothereviewandanyotheractionscontemplatedbyParagraph15(k)andthisExhibitJ.
B.QualificationsandSelectionofThirdPartyReviewer:
TheselectionoftheThirdPartyReviewerdescribedinParagraph15(k)oftheFranchiseAgreementwillbemadebytheFranchiseeSelection
Committee,assetoutinSectionA.1.above,within90daysafterthefirstdayofeachcalendaryearduringthetermoftheFranchiseAgreement,beginning
onJanuary1,2005.TheThirdPartyReviewer(i)shouldbeanindividualorentitythathasexperienceinreviewingandidentifyingdiscountsand
allowancesprovidedbymanufacturersandothervendorstoretailcompanies(ii)willnotbedisqualifiedsolelybasedonthefactthatsuchindividualor
entityhasbeenengagedbyustoreviewdiscountsandallowancesobtainedbyoravailabletousoutsideofthecontextofthereviewcontemplatedbythis
ExhibitJ(iii)may(butneednot)continuetobeselectedinsubsequent
ExhibitJPage1
77/80
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yearsand(iv)mustagreetobeboundbythisExhibitJ,includingthedisputeresolutionproceduressetforthinSectionD.TheFranchiseeSelection
CommitteeshallnotifyusinwritingpromptlyupontheselectionofaThirdPartyReviewer,andthenoticeshallincludeastatementexplaininghowthe
ThirdPartyReviewersatisfieseachofthequalificationssetforthabove.
C.ProceduresforandScopeofReviewofVendorNegotiatingPracticesandTreatmentofDiscountsandAllowances:
1.VendorAgreements.BeginningeffectiveJanuary1,2005,within60daysafterthebeginningofeachcalendaryearduringtheTermofthe
FranchiseAgreement,wewillprovidetotheFranchiseeSelectionCommitteealistofallVendoragreements(includingmaintenancevendorsrecommended
byus)enteredintoduringtheimmediatelyprecedingcalendaryear.PromptlyfollowingtheselectionoftheThirdPartyReviewer,theFranchiseeSelection
CommitteeshallidentifytousinwritinganysuchVendoragreementswhichitwishestheThirdPartyReviewertoreview.TheThirdPartyReviewermay
continuetoreviewanyVendoragreementsthatcontinuefromyeartoyearfortheyearstheyareoperative,asoutlinedabove.TheThirdPartyReviewerwill
beentitledtoobtainthetotalamountpaidtousbyanyVendorwhoseagreementitisreviewingincludingverifyingwiththeVendorthetotalamountpaid,
ifitdesires.
2.Confidentiality.BeforereviewinganyVendoragreementunderwhichwearerequiredtomaintaintheconfidentialityofthetermsofsuch
agreement,theThirdPartyReviewerandeachmemberoftheFranchiseeSelectionCommitteemustsignaconfidentialityagreementintheformthatwe
require.TheThirdPartyReviewerwillthenbegivenaccesstothesubjectVendoragreementand,ifrequested,toourpersonnelwhoweredirectlyinvolved
inthenegotiationoftheagreementwhichisthesubjectofthereview.ThereviewofallVendoragreementsidentifiedbytheFranchiseeSelection
Committeemustbecompletedwithin145daysafterthedateonwhichtheThirdPartyReviewerisselectedeachyear.
3.ScopeofReview.InconductingitsreviewoftheVendoragreementsidentifiedassetforthabove,thesolequestionbeforetheThirdParty
ReviewershallbewhetherwesatisfiedourobligationsunderParagraph15(j)(1)and(2)oftheFranchiseAgreement.Inordertodeterminewhetherwemet
ourobligationsunderParagraph15(j)(1),theThirdPartyReviewerand,ifapplicable,theArbitratorunderSectionD,(i)shallbedirectedtoconsiderthe
limitations,restrictionsandconditionsplacedonthediscount,allowanceorotheropportunityforpriceadjustmentbytheVendorand(ii)shalltakeinto
considerationwhetherthenatureandrequirementsofaparticularVendorsofferofalowercostofproductsandservicesisconsistentwithourbusiness
conceptandstrategies.TheThirdPartyReviewermayalsoreviewandreporttheactionswetooktomeettherequirementsfordealingwithVendorslisted
inthedefinitionofSystemTransactionAmountsinExhibitE.
D.DisputeResolutionProcedures:
1.LIMITATIONSPERIOD.ANYANDALLCLAIMSARISINGOUTOFORRELATINGTOOUROBLIGATIONSUNDERPARAGRAPHS
15(j)AND(k)ORTHEREVIEWCONDUCTEDUNDERTHISEXHIBITJWILLBEBARREDUNLESSANACTIONISCOMMENCEDUNDER
THESEDISPUTERESOLUTIONPROCEDURESWITHINTHECALENDARYEARIMMEDIATELYFOLLOWINGTHECALENDARYEARIN
WHICHTHETHIRDPARTYREVIEWERCONDUCTEDTHEREVIEWATISSUE.
2.Negotiation.IntheeventtheThirdPartyReviewerreasonablybelievesthatwedidnotmeetourobligationsunderParagraph15(j)(1)or(2)ofthe
FranchiseAgreement,thentheThirdPartyReviewershallsoadviseourlegaldepartmentandtheheadofourmerchandisingdepartmentandtheFranchisee
SelectionCommittee.TheFranchiseeSelectionCommitteeandtheheadofour
ExhibitJPage2
78/80
9/8/2016
merchandisingdepartment(orhisorherdesignee)shallendeavoringoodfaithtoresolveanysuchdisputeswithin30daysfollowingthedateonwhichit
isreferredtothem.If,aftersuch30dayperiod,theFranchiseeSelectionCommitteereasonablybelievesthatwehavefailedtomeetourobligationsunder
Paragraph15(j)(1)or(2)oftheFranchiseAgreementandhavenottakenoragreedtotakeactiontoremedysuchfailure,thentheFranchiseeSelection
CommitteemaybringaclaimagainstusundertheproceduressetoutinSectionD.3.below.Youagreethatthisprocedureshallbeyoursoleremedyforany
breachorallegedbreachofParagraphs15(j)and(k).
3.NonBindingMediation.AnyclaimarisingunderParagraph15(j)(1)or(2),Paragraph15(k)and/orExhibitJtotheFranchiseAgreementnot
resolvedunderSectionD.2.ofthisExhibitJshallbesubmittedtononbindingmediationinaccordancewiththeproceduressetforthinParagraph29ofthe
FranchiseAgreement,exceptthatthemediatorsfeesandexpensesandthefeeschargedbytheAmericanArbitrationAssociation(oranyotherorganization
usedforthemediation),willbesharedbytheFranchiseeSelectionCommitteeandus,withonehalfofthoseexpensesandfeesbeingpaidbyusandone
halfofthoseexpensesandfeesbeingpaidbytheFranchiseeSelectionCommittee.WeandtheFranchiseeSelectionCommitteewillberesponsibleforour
respectiveexpensesincurredinconnectionwiththemediation.Youandweagreethatgoodfaithparticipationinthismediationprocedureisobligatory.If
thedisputecannotbefinallyresolvedthroughmediationwithin30daysafterthemediationdemandismade,thedisputeshallbesubmittedforbinding
arbitrationbytheFranchiseeSelectionCommittee,orbyus,upondemandofeitherparty,totheAmericanArbitrationAssociationinaccordancewith
SectionD.4.ofthisExhibitJ.
4.Arbitration.
a.Thearbitrationproceedingswillbeconductedbyonearbitrator(Arbitrator),and,exceptasthissubsectionotherwiseprovides,according
tothethencurrentcommercialarbitrationrulesoftheAmericanArbitrationAssociation.UnlessotherwiseagreedbytheFranchiseeSelectionCommittee
andus,theArbitratorwillbeanindividualwhohasexperienceintheavailabilityanduseofproductandservicediscountsandallowancesprovidedby
vendorsintheretailindustry.AllproceedingswillbeconductedatasuitablelocationchosenbytheArbitratorinthecitywhereourprincipalbusiness
addressisthenlocated.AllmattersrelatingtoarbitrationwillbegovernedbytheFederalArbitrationAct(9U.S.C.1etseq.).Judgmentuponthe
Arbitratorsawardmaybeenteredinanycourtofcompetentjurisdiction.
b.Withinareasonabletimeaftertheissuanceofafinalarbitratorsawardthatisnotsubjecttoappealorfinaljudgmentofacourtofcompetent
jurisdictionenforcinganarbitratorsawardandawardinganamounttobepaidtofranchiseesunderthisprocedure,wewillpaythatawardbycreditingto
yourOpenAccountanamountequaltoyourallocableshareoftheawardbasedonyourpurchasesoftheVendorsproductsorservices.Ifpurchasedatais
unavailable,wewillestimatepaymentsbaseduponthebestavailabledata.Forfranchiseesthathaveleftthesystem,wewillmailthepaymentstotheirlast
knownaddress.Wewillpayouttheentireawardtofranchisees,andyouagreethatourdeterminationregardingpaymentwillbefinalandthatyouhaveno
rightto,andwaive,anycontestwithrespecttothedeterminationoftheamountstobepaid.
c.LimitationonDamages.
(i)YouandweagreethattheArbitratorwillbeinstructedbythepartiestothearbitrationthat:
withrespecttoafindingthatwefailedtomeetourobligationsunderParagraph15(j)(1)orunderthedefinitionofSystemTransactionAmounts
inExhibitE,nodamages,
ExhibitJPage3
79/80
9/8/2016
includingmoneydamages,specificperformance,injunctiverelief,orattorneysfeesandcosts,maybeawarded
withrespecttoafindingthatwefailedtosatisfyourobligationsunderParagraph15(j)(2),thedamagesthatcanbeawardedtoyouarelimited
toanamountequaltotheamountofthediscountorallowanceattributabletoyourpurchasesofthegoodsorservicesonwhichtheallowance
wasgivenmultipliedbythepercentageequaltothedifferencebetween100%andthepercentageusedtocalculatethe7ElevenChargeforthe
yearinquestion.
(ii)Inadditionandnotwithstandinganythingtothecontraryherein,theArbitratormaynotawardanypunitiveorexemplarydamages
againsteitherpartyunderanycircumstances.Weandyouagreetobeboundbytheprovisionsofanylimitationontheperiodoftimeinwhichclaimsmust
bebroughtunderapplicablelawortheFranchiseAgreement(includingthisExhibitJ),whicheverexpiresearlier.
d.ArbitrationCosts.TheArbitratorsfeesandexpensesandthefeeschargedbyAmericanArbitrationAssociation(oranyotherorganization
usedforthearbitration)willbesharedbytheFranchiseeSelectionCommitteeandus,withonehalfofthoseexpensesandfeesbeingpaidbyusandone
halfofthoseexpensesandfeesbeingpaidbytheFranchiseeSelectionCommittee.WeandtheFranchiseeSelectionCommitteewillberesponsibleforour
respectiveexpensesincurredinconnectionwiththearbitration.
e.AcknowledgementsRegardingArbitration.Thepartiesacknowledgethatanydisputearisingoutoforrelatedtoaviolationoralleged
violationofParagraph15(j)orarisingoutoforrelatedtoParagraph15(k)orExhibitJissolelybetweenyouandus,thatnoVendorwillbeanecessary
partytoanysuchdispute,andthatyouwillhavenoremedyagainstanyVendorforaviolationofParagraph15(j).Thepartiesfurtheracknowledgethatthe
provisionsofSectionD.4willcontinueinfullforceandeffectsubsequenttoandnotwithstandingtheFranchiseAgreementsexpirationortermination.
FRANCHISEE
By:
PrintedName:
Date:
By:
PrintedName:
Date:
7ELEVEN,INC.
By:
Name:
Title:
Date:
ExhibitJPage4
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