Document:

EX-10.2

Exhibit 10.2

NON-COMPETE AGREEMENT

This Non-Compete Agreement (“Agreement”) is entered into between Group 1 Automotive, Inc.
(“Employer”), and Earl J. Hesterberg (“Employee”), effective as of May 19, 2015 (the “Effective
Date”).

RECITALS

WHEREAS, Employer and Employee previously entered into an employment agreement dated September
8, 2010, as amended February 27, 2012, and a non-compete agreement dated July 1, 2010.

WHEREAS, simultaneously with the execution of this Agreement, Employer and Employee executed a
new employment agreement (“Employment Agreement”) governing the terms and conditions of their
continuing employment relationship.

WHEREAS, Employer desires to provide to Employee certain additional post-employment payments
as set forth in Section 3.5 of the Employment Agreement (the “Post-Employment Non-Compete
Payments”) in consideration for Employee’s loyalty, future performance and continued employment
with Employer.

WHEREAS, in consideration for Employer providing to Employee the Post-Employment Non-Compete
Payments, and certain confidential and proprietary information and trade secrets for the purpose of
carrying out his employment responsibilities (as set forth in Section 5.1 of the Employment
Agreement), Employee agrees to the non-competition provisions of Section 1 of this Agreement.

AGREEMENT

For and in consideration of the mutual promises, covenants, and obligations contained herein,
Employer and Employee agree as follows:

	1.	 	POST-EMPLOYMENT NON-COMPETITION OBLIGATIONS

1.1. Non-Competition Obligations. Ancillary to the agreement of Employer and Employee in
Sections 3 and 5 of the Employment Agreement, and in consideration for the Post-Employment
Non-Compete Payments and Employer’s promises contained in Section 5.1 of the Employment Agreement,
and as an additional incentive for Employer to enter into this Agreement, Employer and Employee
agree to the non-competition provisions of this Section 1.1. Employee agrees that during the
period of Employee’s non-competition obligations hereunder, Employee will not, directly or
indirectly for either Employee or any automotive retailer with $1 Billion ($1,000,000,000) or more
in annual revenues for the prior two years, in any geographic area or market where Employer or any
of its subsidiaries or affiliated companies are conducting any business as of the date of
termination of the employment relationship or have during the previous twelve (12) months conducted
any business:

	 	(i)	 	engage in any business competitive with any line of business conducted by
Employer or any of its subsidiaries or affiliates on behalf of any public or private
auto retailer which averaged, in the aggregate, $1 Billion ($1,000,000,000) or more in
annual revenues for the prior two years;

	 	(ii)	 	render advice or services to, or otherwise assist, any other person,
association, or entity who is engaged, directly or indirectly, in any business
competitive with any line of business conducted by Employer or any of its subsidiaries
or affiliates on behalf of any public or private auto retailer which averaged, in the
aggregate, $1 Billion ($1,000,000,000) or more in annual revenues for the prior two
years;

	 	(iii)	 	solicit or accept the business of, or call upon, any customer or client of
Employer for the purpose of conducting competitive business or otherwise seeking profit
from a competitive activity;

	 	(iv)	 	encourage or induce any current or former employee of Employer or any of its
subsidiaries or affiliates to leave the employment of Employer or any of its
subsidiaries or affiliates or proselytize, offer employment, retain, hire or assist in
the hiring of any such employee by any person, association, or entity not affiliated
with Employer or any of its subsidiaries or affiliates for a period of twenty-four (24)
months from date of termination; provided, however, that nothing in this subsection
(iv) shall prohibit Employee from offering employment to any prior employee of Employer
or any of its subsidiaries or affiliates who was not employed by Employer or any of its
subsidiaries or affiliates at any time in the twelve (12) months prior to the
termination of Employee’s employment; or

	 	(v)	 	divulge any of the confidential, proprietary or trade secret information that
was provided to Employee pursuant to Section 5 of this Agreement to any third party or
individual or entity other than Employer or any of its subsidiaries or affiliates.

The non-competition obligations set forth in subsections (i) through (v) of this Section 1.1 shall
apply during Employee’s employment and for a period of two (2) years after termination of
employment. If Employer or any of its subsidiaries or affiliates abandons a particular aspect of
its business, that is, ceases such aspect of its business with the intention to permanently refrain
from such aspect of its business, then this post-employment non-competition covenant shall not
apply to such former aspect of that business.

1.2. Future Employment.

1.2.1. If Employee in the future, seeks or is offered employment, or any other position or
capacity with another company or entity, Employee agrees to inform each new employer or entity,
before accepting employment, of the existence of the restrictions contained in Section 1.1.
Further, before taking any employment position with any person during the non-competition period,
Employee agrees to give prior written notice to Employer of the name of such person or entity.
Employer shall be entitled to advise such person or entity of the provisions of Section 1.1 and to
otherwise deal with such person or entity to ensure that the provisions of this Section are
enforced and duly discharged.

1.2.2. If Employee in the future seeks or is offered employment with another company or
entity, Employee may provide Employer with written notice stating the name of the prospective
employer, Employee’s prospective position, responsibilities and duties, and the industry or
industries in which the prospective employer operates. Employer shall have ten (10) business days
from receipt of such notice to notify Employee of its belief that such prospective employment would
be a violation of the provisions of Section 1.1. If Employer fails to respond to Employee in
writing within such ten (10) business day period, Employer shall be estopped from asserting its
rights, if any, arising from a violation of Section 1.1 by reason of such employment as described
in such notice.

1.3. Tolling of Restrictive Periods. If the Employee violates any of the restrictions
contained in Section 1.1, the restrictive periods shall be suspended and will not run in favor of
the Employee until such time as the Employee cures the violation to the satisfaction of Employer.

1.4. Acknowledgment. Employee understands that the foregoing restrictions may limit his
ability to engage in certain businesses in locations where the Employer conducts business during
the period provided for above, but acknowledges that Employee’s job duties during his employment
with Employer, receipt of Employer’s confidential and proprietary information and trade secrets (as
well as access to certain confidential and proprietary information and trade secrets) and
Employee’s receipt of sufficiently high remuneration and other benefits under the Employment
Agreement justifies such restriction. Employee acknowledges that money damages would not be
sufficient remedy for any breach of Section 1.1 by Employee, and Employer or any of its
subsidiaries or affiliates shall be entitled to enforce the provisions of this Section by
terminating any payments then owing to Employee under the Employment Agreement and/or to obtain
specific performance and injunctive relief as remedies for such breach or any threatened breach,
without any requirement for the securing or posting of any bond in connection with such remedies.
Such remedies shall not be deemed the exclusive remedies for a breach of Section 1.1, but shall be
in addition to all remedies available at law or in equity to Employer or any of its subsidiaries or
affiliates, including, without limitation, the recovery of damages from Employee and his agents
involved in such breach.

1.5. Materiality and Conditionality of Section. Section 1.1 is material to this Agreement.
Employee’s agreement to strictly comply with Section 1.1 is a precondition for Employee’s receipt
of payments and vesting of Restricted Stock and stock options pursuant to Section 1 of this
Agreement. Whether or not Section 1.1 or any portion thereof has been held or found invalid or
unenforceable for any reason whatsoever by a court or other constituted legal authority of
competent jurisdiction, upon any violation of this Section or any portion thereof, or upon a
finding that a violation would have occurred if such Section or any portion thereof were
enforceable, the Employee and Employer agree that (i) the Employee’s interest in the Restricted
Stock and stock options pursuant to Section 1 of this Agreement shall automatically lapse and be
forfeited; (ii) Employer shall have no obligation to make any further payments to Employee under
the terms of Section 1 of this Agreement; (iii) Employer shall be entitled to receive the full
value of any payments which were previously made to the Employee pursuant to Section 1 of this
Agreement in the previous twelve (12) months, as well as the value of any Restricted Stock or stock
options that may have vested during the past twelve (12) months from the date of the Employee’s
termination, for any reason, to the date on which a court or arbitration panel held or found the
non-compete article to have been violated; (iv) the Employee’s interest in post-termination payment
pursuant to Sections 2.3 and 3.5 of the Employment Agreement shall automatically lapse and be
forfeited; (v) Employer shall have no obligation to make any further payments to Employee under the
terms of Sections 2.3 and 3.5 of the Employment Agreement; and (vi) Employer shall be entitled to
receive the full value of any payments which were previously made to the Employee pursuant to
Sections 2.3 and 3.5 of the Employment Agreement in the previous twelve (12) months.

1.6. Survival of Section. The Employee and Employer agree that all of the covenants contained
in Section 1.1 shall survive the termination or expiration of this Agreement, and agree further
that in the event any of the covenants contained in Section 1.1 shall be held by any court to be
effective in any particular area or jurisdiction only if said covenant is modified to be limited in
its duration or scope, then, at the sole option of Employer, the provisions of Section 1.5 may be
deemed to have been triggered, and the rights, liabilities and obligations set forth therein shall
apply. In the event Employer does not elect to trigger application of Section 1.5, then the court
shall have such authority to so reform the covenants and the parties hereto shall consider such
covenants and/or other provisions of Section 1 to be amended and modified with respect to that
particular area or jurisdiction so as to comply with the order of such court and, as to all other
jurisdictions, the covenants contained herein shall remain in full force and effect as originally
written. Should any court hold that the covenants in Section 1.1 are void and otherwise
unenforceable in a particular area or jurisdiction, then notwithstanding the foregoing provisions
of this Section 1.6, the provisions of Section 1.5 shall be applicable and the rights, liabilities
and obligations of the parties set forth therein shall apply. Alternatively, at the sole option of
Employer, Employer may consider such covenants to be amended and modified so as to eliminate
therefrom the particular area or jurisdictions as to which such covenants are so held void or
otherwise unenforceable and, as to all other areas and jurisdictions covered herein, the covenants
contained herein shall remain in full force and effect as originally written.

	2.	 	MISCELLANEOUS

2.1. Definition of “Affiliates” and “Affiliated.” For purposes of this Agreement the terms
“affiliates” or “affiliated” means an entity who directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with Employer.

2.2. Prohibition of Publication of Certain Information. Except as required by law or process,
Employee shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any oral or written statements about Employer at any of
its subsidiaries’ or affiliates’ directors, officers, employees, agents or representatives that are
slanderous, libelous, or defamatory; or that disclose private or confidential information about
Employer or any of its subsidiaries’ or affiliates’ business affairs, officers, employees, agents,
or representatives; or that constitute an intrusion into the seclusion or private lives of Employer
or any of its subsidiaries’ or affiliates’ directors, officers, employees, agents, or
representatives; or that give rise to unreasonable publicity about the private lives of Employer or
any of its subsidiaries’ or affiliates’ officers, employees, agents, or representatives; or that
place Employer or its subsidiaries’ or affiliates’ officers, employees, agents, or representatives
in a false light before the public; or that constitute a misappropriation of the name or likeness
of Employer or any of its subsidiaries’ or affiliates’ or its officers, employees, agents, or
representatives. Except as required by law or process, the Employer shall refrain, and shall use
its best efforts to assure that its directors, officers, employees, agents and representatives, and
its subsidiaries and affiliates and their directors, officers, employees, agents and
representatives, shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any untrue oral or written statements about the Employee
that are slanderous, libelous, or defamatory; or that disclose private or confidential information
about the Employee; or that constitute an intrusion into the seclusion or private life of the
Employee; or that give rise to unreasonable publicity about the private life of the Employee; or
that place the Employee in a false light before the public.

2.3. Notice. For purposes of this Agreement, notices and all other communications provided
for herein shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to Employer to:

Group 1 Automotive, Inc.

800 Gessner, Suite 500

Houston, TX 77024

Attn: Presiding Director of the Board

With a copy to:

Fisher & Phillips LLP

Suite 4000

333 Clay Street

Houston, Texas 77002

Attn: Steve Roppolo; and

Group 1 Automotive, Inc.

800 Gessner, Suite 500

Houston, TX 77024

Attn: General Counsel

Group 1 Automotive, Inc.

800 Gessner, Suite 500

Houston, TX 77024

Attn: Chairman of the Compensation Committee

If to Employee:

Earl J. Hesterberg

At the address specified in the Company’s personnel records

With a copy to:

Akin Gump Strauss Hauer & Feld LLP

1111 Louisiana Street

44th Floor

Houston, TX 77002

Attn: Christine LaFollette

Either Employer or Employee may furnish a change of address to the other in writing in accordance
herewith, except that notices of changes of address shall be effective only upon receipt.

2.4. Governing Law. This Agreement shall be governed in all respects by the law of the State
of Texas, excluding any conflict-of-law rule or principle that might refer the construction of the
Agreement to the laws of another State or country.

2.5. No Waiver. No failure by either party hereto at anytime to give notice of any breach by
the other party of, or to require compliance with, any condition or provision of this Agreement
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

2.6. Severability. It is a desire and intent of the parties that the terms, provisions,
covenants, and remedies contained in this Agreement shall be enforceable to the fullest extent
permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the
application thereof to any person, association, or entity or circumstances shall, to any extent, be
construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant,
or remedy shall be construed in a manner so as to permit its enforceability under the applicable
law to the fullest extent permitted by law. In any case, the remaining provisions of this
Agreement or the application thereof to any person, association, or entity or circumstances other
than those to which they have been held invalid or unenforceable, shall remain in full force and
effect.

2.7. Arbitration. The parties agree that any claim, dispute, and/or controversy that they may
have arising from, related to, or having any relationship or connection whatsoever with this
Agreement, Employee’s employment, or other association with the Company, shall be submitted to and
determined exclusively by binding arbitration under the Federal Arbitration Act. In addition to
any other requirements imposed by law, the arbitrator selected shall be a retired Judge, or
otherwise qualified individual to whom the parties mutually agree, and shall be subject to
disqualification on the same grounds as would apply to a Judge. The arbitrator shall apply the
Federal Rules of Civil Procedure and Evidence, including all rules of pleading, discovery, evidence
and all rights to resolution of the dispute by means of motions for summary judgment and judgment
on the pleadings. Resolution of the dispute shall be based solely upon the law governing the
claims and defenses pleaded, and the arbitrator may not invoke any basis (including but not limited
to, notions of “just cause”) other than such controlling law. This Agreement shall not prevent the
Parties from obtaining provisional remedies in court to the extent permitted by Texas law (either
before the commencement of or during the arbitration process), pending final resolution of the
dispute pursuant to this Agreement. The arbitrator shall have the immunity of a judicial officer
from civil liability when acting in the capacity of an arbitrator, which immunity supplements any
other existing immunity. Likewise, all communications during or in connection with the arbitration
proceedings are privileged. Awards shall include the arbitrator’s written reasoned opinion.

2.8. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
Employer, its subsidiaries and affiliates and any other person, association, or entity which may
hereafter acquire or succeed to all or a portion of the business or assets of Employer by any means
whether direct or indirect, by purchase, merger, consolidation, or otherwise. Employee’s rights
and obligations under this Agreement are personal and such rights, benefits, and obligations of
Employee shall not be voluntarily or involuntarily assigned, alienated, or transferred, whether by
operation of law or otherwise, by Employee without the prior written consent of Employer.
Notwithstanding anything to the contrary in this Section 7.8 or elsewhere in the Agreement, in the
event of the Employee’s death after becoming entitled to receipt of any payment or benefit, but
before receiving all such payments or benefits, the remaining payments shall be made to the
Employee’s survivors or estate and the remaining benefits shall be provided to his widow or other
survivors to the same extent and in the same manner as if he were still alive.

2.9. Entire Agreement. Except as provided in (1) written company policies promulgated by
Employer dealing with issues such as securities trading, business ethics, governmental affairs and
political contributions, consulting fees, commissions and other payments, compliance with law,
investments and outside business interests as officers and employees, reporting responsibilities,
administrative compliance, and the like, (2) the written benefits, plans, and programs referenced
in Section 1.4 of this Agreement or (3) any signed written agreements contemporaneously or
hereafter executed by Employer and Employee (including, but not limited to, the Employment
Agreement), this Agreement constitutes the entire agreement of the parties with regard to such
subject matters, and contains all of the covenants, promises, representations, warranties, and
agreements between the parties with respect to such subject matters and replaces and merges
previous agreements and discussions pertaining to the employment relationship between Employer and
Employee.

2.10. Headings. The headings contained in this Agreement are for reference only and shall not
affect the meaning or interpretation of any provision of this Agreement.

2.11. Amendment. No amendments or additions to this Agreement shall be binding unless in
writing and signed by both parties hereto.

2.12. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but both of which together will constitute one and the same instrument

IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple
originals to be effective on the date first stated above.

DATE:       May 19, 2015       GROUP 1 AUTOMOTIVE, INC.

By: /s/ Max P. Watson, Jr.      

Name: Max P. Watson, Jr.

Title: Chairman, Compensation Committee

DATE:       May 19, 2015       /s/ Earl J. Hesterberg     

EARL J. HESTERBERGExhibit 10.1

 

OFFER TO PURCHASE REAL ESTATE

 

SG&D Ventures, LLC (“Buyer”) hereby offers to purchase from ISA Real Estate, LLC (“Seller”), the real estate commonly known as 7017 Grade Lane, Louisville, Kentucky 40213 and legally described in the attached Exhibit “A”, consisting of approximately 0.9948 acres, together with all improvements located thereon (the “Real Estate”), upon the following terms and conditions:

 

1.             Purchase Price and No Financing Contingencies.  The Purchase Price for the Real Estate shall be Three Hundred Thousand and 00/100 Dollars ($300,000.00) (the “Purchase Price”).  The Purchase Price shall be paid at Closing in accordance with Section 9.   The Buyer’s obligations hereunder are not subject to or otherwise contingent on its receipt of any loan or any other financing contingency.

 

2.             Earnest Money.  Within five (5) days of the date of Seller’s acceptance of this Offer, Buyer shall deposit the sum of Twenty-Five Thousand and 00/100 Dollars ($25,000.00) with Title Agency Support, LLC (“Escrow Agent”) as an earnest money deposit (“Earnest Money Deposit”).  The Earnest Money Deposit shall be held in trust by the Escrow Agent for the benefit of Seller and Buyer as their respective interests appear under this Agreement.  At the Closing of the transaction contemplated hereunder, the Earnest Money Deposit shall be applied to the Purchase Price.

 

3.                                      Title and Title Insurance.

 

(a)           Title, Mortgages and Liens.  Seller represents that it has fee simple title to the Real Estate and agrees to cause all mortgages and other liens and encumbrances on the Real Estate not otherwise approved by Buyer to be satisfied and released of record on or before Closing.

 

(b)           Commitment and Objections to Title.  Upon execution of this Agreement, Seller shall order, at its expense, a commitment for an owner’s policy of title insurance from Title Agency Support, LLC, as agent for First American Title Insurance Company in the amount of the Purchase Price (the “Commitment”).  Buyer shall have a period of five (5) days after receipt of the Commitment to review the same and notify Seller of any easements, covenants, restrictions, access issues and other defects that render title to the Real Estate unmarketable.

 

(c)           Seller’s Right to Cure.  Seller shall have a period of ten (10) days after receipt of Buyer’s notice (“Extension Period”) in which to attempt to cure Buyer’s objections or propose a plan acceptable to Buyer for the cure of such issues.  If Seller does not cure or propose an acceptable plan to cure Buyer’s objections within said period, Buyer shall have the option to: (i) elect to extend the time period in which Seller may act to cure such objections; (ii) waive the objections and proceed with its due diligence and/or Closing, or (iii) terminate this Agreement and receive a refund of the entire amount of its Earnest Money Deposit.

 

If Buyer elects option (i) above, and if, on or before the end of the Extension Period, Seller is still unable to cure Buyer’s objection, then Buyer may elect any of the foregoing options.

 

(d)           Tenants.  Buyer acknowledges that T.T. Repairs, LLC. currently occupies a portion of the Real Estate pursuant to the terms of an undated Lease (“T.T. Repairs Lease”).  Seller will, upon Closing, assign said lease to Buyer and transfer all deposits in Seller’s possession to Buyer.  Buyer will assume all of Seller’s obligations under said lease.

 

4.             Intentionally Omitted.

 

5.             Due Diligence Investigation.  Due Diligence.  Buyer may, prior to Closing (“Due Diligence Period”), perform any of the due diligence contemplated in this Section 5 or as otherwise provided in this Agreement. Seller hereby grants Buyer and its designees access to the Real Estate to perform said due diligence and Seller further agrees to provide Buyer with copies of any and all reports or other documents relating to the due diligence investigation and otherwise cooperate with the persons performing the due diligence.

 

6.             Conditions Precedent to Buyer’s Obligation.  Buyer’s obligation to purchase the Real Estate shall be conditioned on the following:

 

(a)           Zoning and Development Approvals.  Buyer’s intended use of the Real Estate is for leasing the Real Estate to tenants that will use the Real Estate for maintenance of trucks and other transportation equipment.  The uses will include office, inside storage of materials and equipment and outside storage of materials and equipment and truck and trailer parking.  Buyer’s obligations hereunder shall be subject to the Real Estate being properly zoned for such purposes and the existence of and continued effectiveness following Closing of any necessary permits, approvals, consents, licenses and exceptions (“Authorizations”).

 

 

(b)           Title Insurance.  Seller, at its expense, shall provide within 90 days of Closing,  an ALTA Owner’s Policy, insuring in Buyer marketable title to the Real Estate as of the date of the Closing in the full amount of the Purchase Price.  The policy shall also insure over the general exceptions customarily contained in such policies and include such title endorsements as requested by Seller and available for commercial properties located in Louisville, Kentucky (the “Owner’s Policy”). The Owner’s Policy shall be free of all exceptions, including the standard exceptions, other than real property taxes on the Real Estate which are a lien but which are not yet due and all other special exceptions shown in the Commitment which were not objected to by Buyer in accordance with the procedures described in Section 3(c).

 

(c)           Representations.  All representations and warranties of Seller are true and correct as of the date of Closing.

 

(d)                                 Obligations.  Seller’s performance of all of the obligations under this Agreement.

 

If all of the foregoing conditions are not satisfied on or prior to Closing or the latest date on which Closing may occur in accordance with Section 9, then Buyer may (i) terminate this Agreement and receive a refund of the Earnest Money Deposit; or (ii) waive such unsatisfied conditions and proceed to closing.

 

7.             Representations and Warranties of Seller.  To induce Buyer to make this Offer and to purchase the Real Estate, Seller, by accepting this Offer, does hereby represent and warrant to Buyer the following:

 

(a)           Assessments and Proceedings.  Seller has not received any notice, and has no knowledge without investigation or inquiry, that the Real Estate or any portion or portions thereof is or will be subject to or affected by (1) any special assessments, whether or not presently a lien thereon, or (2) any condemnation, eminent domain, change in grade of public streets, or similar proceeding.

 

(b)           Laws.  With respect to its ownership and use of the Real Estate, to the best of Seller’s knowledge, Seller is not in violation of any federal, state or local legal or regulatory requirement of any kind or nature whatsoever, including, but not limited to, zoning, land use, building, safety or health laws, regulations, ordinances or codes and Seller has not been notified of any alleged violations of such laws or requirements.

 

(c)           Litigation.  To the best of Seller’s knowledge, there are no actions, suits or proceedings of any kind or nature whatsoever, legal or equitable, affecting the Real Estate or any portion or portions thereof or relating to or arising out of Seller’s ownership of the Real Estate, pending or threatened in any court or before or by any Federal, state, county or municipal department, commission, board, bureau or agency or other governmental instrumentality.

 

(d)           Leases.  As of the date of Closing, there will be no leases, occupancy agreements or tenants in possession affecting the Real Estate or any portion thereof except for the T.T. Repairs Lease.

 

(e)           No Violation or Breach.  The acceptance of this Offer and the consummation of the transaction contemplated herein do not constitute a violation or breach by Seller of any provision of any agreement or other instrument to which Seller is a party or to which Seller may be subject, nor result in or constitute a violation or breach of any judgment, order, writ, injunction or decree issued against Seller.

 

(f)            Environmental Matters.  Except as disclosed in any written reports furnished by Seller to Buyer, to Seller’s knowledge, (i) the Real Estate has had no environmental contamination from toxics, pollutants, hazardous substances, hazardous wastes, petroleum based products, chemicals, organic compounds, other detrimental matters, including those specified in this Section, whether in the form of a liquid, solid, or gas (“Hazardous Substance” or “Hazardous Substances”); (ii) there are currently no underground storage tanks on the Real Estate and there has never been any spills or leaks from any underground storage tanks on the Real Estate; (iii) there is not constructed, deposited, stored, released, disposed, placed or located on the Real Estate any material, element, compound solution, mixture, substance or other matter of any kind, including solid, liquid or gaseous material, that (1) is a hazardous substance as defined in the federal Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. § 9601 et. seq., the regulations promulgated from time to time thereunder, environmental laws administered by the United States Environmental Protection Agency, the laws or regulations of the Commonwealth of Kentucky, or any other governmental organization or agency, or (2) is a hazardous waste as defined in the federal Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et. seq., the regulations promulgated from time to time thereunder, environmental laws administered by the United States Environmental Protection Agency, the laws or regulations of the State of Kentucky, or any other governmental organization or agency, or (3) may cause or contribute to damage to the public health or the environment; (iv) no asbestos or asbestos-containing materials have been installed, used, incorporated into, or disposed of on the Real Estate; (v) no polychlorinated biphenyls (PCBs) are located on or in the Real Estate, in the form of electrical transformers, or any other device or form; (vi) no investigation, administrative order, consent order and agreement, litigation, or settlement with respect to Hazardous Substances is proposed, threatened, anticipated or in existence with respect to the Real Estate; (vii) the Real Estate is in compliance with all federal, state and local environmental statutes, laws, regulations and ordinances; (viii) no notice has been served on Seller concerning the Real Estate, from any entity, governmental body, or individual claiming any violation of

 

2

 

any statute, law, regulation or ordinance, or requiring compliance with any statute, law, regulation or ordinance, or demanding payment or contribution for environmental damage or injury to natural resources; and (ix) by acquiring the Real Estate, Buyer will not incur or be subjected to any “superfund” liability for the clean-up, removal, or remediation of any Hazardous Substance from the Real Estate.

 

(g)           True and Correct at Closing.  The foregoing representations and warranties are true and correct as of Seller’s acceptance of this Offer and, will be true and correct as of the date of the Closing.

 

8.             Risk of Loss and Changes to Property.    All risk of loss shall remain in Seller until Closing.  Seller shall not, while this Agreement is in effect, modify, alter, change, commit waste on or take any action that affects the condition of the property or allow the dumping of any material, regardless of whether or not it is hazardous, on the Real Estate.  If the condition of the Real Estate changes between the date of this Agreement and the date of Closing, Buyer may elect (i) to terminate this Agreement and receive a refund of the Earnest Money Deposit or (ii) elect to close and receive from Seller (A) the reasonable costs of removing any material disposed of on the Real Estate and otherwise restoring the Real Estate to its condition as of the date of this Agreement; and (B) any and all insurance proceeds on any improvements on the Real Estate initially payable to Seller pursuant to any policy of property insurance maintained by Seller.

 

9.             Closing.  Closing under this Agreement shall be held on a date specified by Buyer after satisfaction of all conditions hereof, but on or before May 18, 2015 or such other date as is mutually agreeable to the parties (the “Closing”).  Closing shall be held in Louisville, Kentucky at the office of the title agent providing the Commitment, or at such time and place as the parties shall designate in writing.  At Closing, the parties shall perform the following:

 

(a)           Deed.  Seller shall convey to Buyer good and marketable title to the Real Estate (the “Deed”), subject to any exceptions to title accepted by Buyer under Section 3, by general warranty deed in form acceptable to Buyer;

 

(b)           Seller Closing Documents.  Seller shall execute and deliver to Buyer at Closing (i) a Closing Affidavit in a form acceptable to Buyer and sufficient to support the removal of the standard exceptions from the title insurance policy as contemplated in Section 10(c); (ii) Certification of Non-foreign Status; (ii) an Authorizing Resolution that grants Seller, and Seller’s authorized agents, full power and authority to execute the documents to be delivered at Closing; (iv) a closing statement, and (v) an assignment of the T.T. Repairs Lease.

 

(c)           Buyer Closing Documents.  Buyer shall execute and deliver to Seller at Closing (i) a closing statement, (ii) an assignment of the T.T. Repairs Lease, and any and all other documents required to be signed by Buyer.

 

(d)           Payment.  Buyer shall pay Seller, or the title agent for Seller, the Purchase Price by wire transfer; and

 

(e)           Possession.  Possession shall be delivered to Buyer upon Closing.

 

If Closing has not occurred prior to May 18, 2015, as a result of an unfilled condition, (i) the parties may elect to extend the date of Closing; or (ii) either party may elect to terminate this Agreement and the Earnest Money Deposit shall be returned to Buyer.

 

10.                               Closing Costs, Taxes and Rents.

 

(a)           Buyer’s Closing Costs.  Buyer shall pay Buyer’s attorney’s fees, the cost of recording the Deed, one half of any title company closing fee and all other costs required to be paid by Buyer hereunder.

 

(b)           Seller’s Closing Costs.  Seller shall pay Seller’s attorney’s fees, any gross income or transfer tax, brokerage commissions, any stamp tax or conveyance fee, one half of any title company closing fee and all other costs required to be paid by Seller hereunder.

 

(c)           Liens and Assessments.  Seller shall pay any accrued but unpaid liens or assessments against the Real Estate in place prior to the date of Closing.

 

(d)           Real Property Taxes.  Real property taxes and rents shall be prorated to the date of Closing.  Buyer may withhold Seller’s share of taxes from the Purchase Price and pay the taxes when due.

 

11.          Condemnation.  If, prior to Closing, condemnation proceedings are commenced against any portion of the Real Estate, Buyer may, at its option, terminate this Agreement by written notice to Seller within ten (10) days after Buyer is advised of the commencement of condemnation proceedings and receive a refund of the Earnest Money Deposit, or Buyer may appear and defend in such condemnation proceedings, and any award in condemnation shall, at the Buyer’s election, become the property of Seller.

 

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12.                               Termination and Default.

 

(a)           Default by Seller.  In the event Seller defaults in or fails to perform any part of this Agreement, then Buyer may, at its option, declare this Agreement null and void and demand return of the entire amount of its Earnest Money Deposit and proceed by action at law for damages or proceed in equity to specifically enforce this Agreement.

 

(b)           Default by Buyer.  In the event Seller has performed all of its obligations under this Agreement, and all of the conditions and contingencies herein have been satisfied, and Buyer fails or refuses to perform its obligations, Seller’s sole remedy will be to declare this Agreement terminated and the Earnest Money forfeited as liquidated damages, in which event this Agreement shall be of no further force and effect.

 

(c)           Notice of Default.  Before either party shall be entitled to declare this Agreement in default, it shall give the other party written notice of the claimed default and ten (10) days in which to cure said default.

 

13.          Notice.  All notices under this Agreement shall be written, personally delivered or sent by overnight courier, and shall, except as otherwise provided herein, be deemed given on the date mailed:

 

	
Notice   to the Seller shall be sent to: 

 

ISA   Real Estate, LLC 

c/o   Industrial Services of America, Inc. 

7100   Grade Lane 

Louisville,   Kentucky 40213 

Attention:   Sean Garber

With   a copy to: 
    	
 
    	
Notice   to Buyer shall be sent to: 

 

SG&D   Ventures, LLC 

4568   Melton Avenue 

Louisville,   Kentucky 40213 

Attn:   William P. Gatti, Manager
    
	
 

Frost   Brown Todd LLC 

400   West Market Street 

32nd Floor 

Louisville,   KY 40202-3363 

Attn:   Carolyn A. Pytynia
    	
 
    	
 
    

 

14.          Assignment. Buyer may assign this Agreement and all of its rights hereunder to any of its affiliates.

 

15.          Binding Agreement.  Upon acceptance by Seller, this Offer shall be the agreement of the parties (“Agreement”) and shall be binding upon, and inure to, the benefit of the Seller and Buyer and their respective heirs, executors, administrators, legal representatives, successors and assigns.  Immediately upon acceptance, Seller shall deliver a fully executed copy of this Agreement to Buyer and the date of such delivery shall be deemed the date of this Agreement.  This Agreement shall constitute the sole and entire agreement between the parties hereto, and no modifications hereof shall be binding unless set forth in writing, signed by Seller and Buyer.  Buyer may, without the consent of Seller, assign its rights and delegate its duties hereunder to an affiliated entity.  This Agreement may be executed in one or more counterparts, each of which shall be deemed a duplicate original and all of which shall constitute one and the same Agreement.

 

16.          Brokerage.  Seller agrees to indemnify and hold the Buyer harmless from any claim for any other real estate brokerage commissions asserted by any broker it or any of its predecessors engaged in connection with the sale of the real estate.

 

17.          Construction of Agreement.  This Agreement shall be construed and enforced in accordance with the laws of the State of Kentucky, without regard to its choice of law provision.  Time is of the essence in all provisions of this Agreement.  Captions contained herein are inserted only for the purpose of convenient reference, and in no way define, limit or describe the scope of this Agreement or any part hereof.

 

18.          Confidentiality.  Seller hereby agrees to keep this Agreement and all of the terms and conditions contained herein confidential.

 

19.          Expiration of Offer.  Unless extended by Buyer, this Offer shall expire at 5:00 p.m. E.S.T. on May 18,  2015, unless accepted and returned to Buyer prior thereto.  This offer may be withdrawn at any time prior to acceptance of this Offer.

 

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BUYER:
    	
SG&D   VENTURES, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:   May 18, 2015
    	
By:
    	
/s/   William P. Gatti 
    
	
 
    	
 
    	
William   P. Gatti, Manager
    

 

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The undersigned, owner of the Real Estate, does hereby agree to sell and convey the above-described Real Estate in accordance with the terms and conditions specified above.

 

	
SELLER:
    	
ISA   Real Estate, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:   May 18, 2015
    	
By:   
    	
Algar, Inc.,   
    
	
 
    	
 
    	
Its   Manager 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Sean Garber 
    
	
 
    	
 
    	
 
    	
Sean   Garber, President
    

 

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EXHIBIT “A”

 

Legal Description

 

Tract I

 

BEING Lot 8 as shown on plat of R.H. Knopp Subdivision, plat of which is of record in Plat and Subdivision Book 7, Page 121, in the office of the Clerk of Jefferson County, Kentucky.

 

Tract II

 

BEING the South one-half in width of Lot 9, as shown on plat of R.H. Knopp Subdivision, plat of which is of record in Plat and Subdivision Book 7, page 121, in the office of the clerk aforesaid; provided however, there is excepted from the foregoing described so much of said property as was heretofore conveyed to Joseph S. Matthis of Deed recorded in Deed Book 4070, Page 43, in the office aforesaid.

 

Tract III

 

BEGINNING at a stake in the Southerly line of Lot 9 of  Knopp Subdivision, as shown on plat of which is of record in Plat and Subdivision Book 7, Page 121, in the office of the clerk aforesaid; said stake being South 68 degrees 50 minutes East, 213 feet from the Southwest corner of said Lot 9; said point being also in an easterly line of Ashbottom Road (now Grade Lane); running thence with the said Southerly line of Lot 9 aforesaid, South 68 degrees 50 minutes East, 223 feet to a stake in the Southeasterly corner of said Lot 9; thence with the Easterly line of said Lot 9 aforesaid, North 21 degrees 10 minutes East 50 feet; thence North 68 degrees 50 minutes West 224.72 feet to a stake; thence South 19 degrees 15 minutes West 50.03 feet to the point of beginning.

 

BEING, the same property conveyed to ISA Real Estate, LLC, a Kentucky limited liability company by Deed dated December 8, 2011 of record in Deed Book 9811, Page 387, in the Office of the Clerk of Jefferson County, Kentucky.

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