During the term of the Christian Brothers Automotive franchise, what non-competition covenants apply to the franchisee and their associates?

to all other remedies available to

Franchisor under this Agreement and at law.

Franchise Agreement (Ver 04-14-2025)

Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

1. COVENANTS NOT TO COMPETE.

16.01 Best Efforts. During the term of this Agreement, Franchisee covenants and agrees to

expend its best efforts in the operation of the Franchised Business, and shall not engage in

any directly or indirectly conflicting or competing enterprises or any other activities which

would be detrimental to or interfere with the operation, reputation or goodwill of the

Franchised Business, the Franchisor, the System or any other of Franchisor's franchisees.

16.02 Exclusive Relationship; During the Agreement Term. Franchisee specifically

acknowledges that, pursuant to this Agreement, Franchisee will receive valuable,

specialized training and Confidential Information, including information regarding the

operational, sales, promotional, and marketing methods and techniques of Franchisor and

the System. Franchisee covenants that during the term of this Agreement, except as

otherwise approved in writing by Franchisor, Franchisee shall not, either directly or

indirectly, for itself, or through, on behalf of, or in conjunction with any person,

partnership, joint venture, organization or legal entity:

(a) Divert or attempt to divert any present or prospective vendor or Customer of any

Christian Brothers Automotive branded business or franchise to any competitor, by

direct or indirect inducement or otherwise, or do or perform, directly or indirectly,

any other act injurious or prejudicial to the goodwill associated with the Marks and

the System;

(b) Own, maintain, operate, engage in, be employed by, provide any assistance to, or

have any interest in (as owner or otherwise) any Competitive Business. A

"Competitive Business" shall be considered (i) any business which offers or sells

any product or service (or component thereof) which comprises or may in the future

Franchise Agreement (Ver 04-14-2025)

Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

comprise a part of the Services or the Franchised Business or which competes

directly or indirectly with the Franchised Business or any franchise of Franchisor;

and/or (ii) any business which is the same or substantially similar to the business

carried on at a franchise of Franchisor, namely a business which generates

substantially all of its revenue from the sale of Services or other products and

services similar to the Services or those offered in the Franchised Business or a

franchisee of Franchisor under the System.

16.03 After the Agreement and After a Transfer. Franchisee covenants that, except as otherwise

approved in writing by Franchisor, for a continuous uninterrupted period of three (3) years

commencing upon the date of: (i) a transfer permitted under Section 13 of this Agreement;

(ii) expiration or termination of this Agreement for any reason; or (iii) a final order of a

duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after

all appeals have been taken) with respect to any of the foregoing or with respect to

enforcement of this Section 16.03:

(a) Franchisee shall not directly or indirectly, for itself, or through, on behalf of, or in

conjunction with any person, partnership, joint venture, organization or legal entity,

own, maintain, operate, engage in, be employed by, provide assistance to, or have

any interest in (as owner or otherwise) any Competitive Business that is, or is

intended to be, located (i) at the premises of the Franchised Business, (ii) within a

radius of ten (10) miles of the Franchised Business, or (iii) within a radius of ten

(10) miles of any other franchisee of Franchisor or any business owned or operated

by Franchisor. This provision shall not apply to the operation by Franchisee or any

Franchise Agreement (Ver 04-14-2025)

Franchisee: ___________

Franchisor: Christian Brothers Automotive Corporation

principal of Franchisee of any business under the System pursuant to a valid

franchise agreement with Franchisor; and

(b) Franchisee shall not sublease, assign, or sell Franchisee's interest in any lease,

sublease, or ownership of the premises or assets of the Franchised Business to a

third party for the operation of a Competitive Business, or otherwise arrange or

assist in arranging for the operation by a third party of a Competitive Business.

16.04 Exception for Ownership in Public Entities. Sections 16.02 and 16.03 shall not apply to

ownership by Franchisee or its shareholders, directors, officers, members, managers,

partners or employees from owning for investment purposes up to an aggregate of five

percent (5%) beneficial interest in the outstanding equity securities of any corporation

which has securities registered under the Securities Exchange Act of 1934.

16.05 Procurement of Additional Agreements and Covenants. At Franchisor's request,

Franchisee shall require and obtain the execution of confidentiality agreements and/or

covenants not to compete in a form satisfactory to Franchisor from any or all of the

following persons: (a) all Service Managers, Principal Operators, any spouse of Principal

Operator, and any personnel employed by Franchisee who have received or will receive

training from Franchisor (excluding any employees who are solely or primarily employed

as mechanics);

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 59–62)