Document:

EX-4.6

	 	 	JPMorgan Chase Bank, National Association

	 	 	P.O. Box 161

	60	 	Victoria Embankment

	 	 	London EC4Y 0JP

	 	 	England

June 20, 2006

	 	 	 	 	 
	To: Group 1 Automotive, Inc.
	950 Echo Lane, Suite 100
Houston, TX 77024
Attention: Kim Craig
Telephone No.:
	 	 	(713) 647-5742	 
	Facsimile No.:
	 	 	(713) 647-5858	 

Re: Warrants

The purpose of this letter agreement is to confirm the terms and conditions of the Warrants
issued by Group 1 Automotive, Inc. (“Company”) to JPMorgan Chase Bank, National Association, London
Branch (“JPMorgan”) on the Trade Date specified below (the “Transaction”). This letter agreement
constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. This
Confirmation shall replace any previous letter and serve as the final documentation for this
Transaction.

The definitions and provisions contained in the 1996 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and this Confirmation, this Confirmation shall govern. This Transaction shall be
deemed to be a Share Option Transaction within the meaning set forth in the Equity Definitions.

1. This Confirmation evidences a complete and binding agreement between JPMorgan and Company as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if JPMorgan and Company had executed an agreement in such form (but
without any Schedule except for the election of the laws of the State of New York as the governing
law and United States dollars as the Termination Currency) on the Trade Date. In the event of any
inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby
agree that no Transaction other than the Transaction to which this Confirmation relates shall be
governed by the Agreement.

	2.	 	The terms of the particular Transaction to which this Confirmation relates are as follows:

General Terms:

	 	 	 	Trade Date: June 20, 2006

	 	 	 	Warrants: Equity call warrants, each giving the holder the right to purchase one Share at the
Strike Price, subject to the Settlement Terms set forth below. For the purposes of the
Equity Definitions, each reference to a Warrant shall be deemed to be a reference to a
Call Option.

	 	 	 
	Warrant Style:

	 	American
	 
	 	 
	Buyer:

	 	JPMorgan
	 
	 	 
	Seller:

	 	Company

	 	 	 	Shares: The common stock of Company, par value USD 0.01 per Share (Exchange symbol “GPI”)

	 	 	 	Number of Warrants: 1,682,670, subject to adjustments provided herein

	 	 	 	Daily Number of Warrants: For any day, the Number of Warrants not previously exercised
on such day, divided by the remaining number of Expiration Dates (including such day) and
rounded up to the nearest whole number to account for any fractional Daily Number of
Warrants.

	 	 	 	 	 
	Warrant Entitlement:
	 	One Share per Warrant

	Multiple Exercise:
	 	Applicable

	Minimum Number of Warrants:
	 	 	1	 
	Maximum Number of Warrants:
	 	 	1,682,670	 
	Strike Price:
	 	USD 80.3100

	Premium:
	 	USD 27,854,000

	Premium Payment Date:
	 	June 26, 2006

	Exchange:
	 	The New York Stock Exchange

	 	 	 	Related Exchange(s): The principal exchange(s) for options contracts or futures contracts, if
any, with respect to the Shares

Exercise and Valuation:

	 	 	 	Expiration Time: The Valuation Time

	 	 	 	Expiration Date(s): Each Exchange Business Day in the period beginning on and including the
First Expiration Date and ending on and including the 89th Exchange Business
Day following the First Expiration Date shall be an “Expiration Date” for a number of
Warrants equal to the Daily Number of Warrants on such date.

Notwithstanding the foregoing and anything to the
contrary in the Equity Definitions, if a Market
Disruption Event occurs on any Expiration Date
(including the First Expiration Date), the Calculation
Agent shall (i) make adjustments, if applicable, to the
Daily Number of Warrants for which such day shall be an
Expiration Date and (ii) designate the Exchange Business
Day immediately following such day (which may be an
Expiration Date for another Daily Number of Warrants) as
the Expiration Date for the remaining Daily Number of
Warrants or a portion thereof for the original
Expiration Date; provided that any such designation
shall be subject to legal, regulatory or self-regulatory
requirements and related policies and procedures
applicable to JPMorgan (whether or not such
requirements, policies or procedures are imposed by law
or have been voluntarily adopted by JPMorgan); provided
further that if such Expiration Date has not occurred
pursuant to clause (ii) as of the eighth Exchange
Business Day following the last scheduled Expiration
Date under this Transaction, the Calculation Agent shall
have the right to declare such Exchange Business Day to
be the final Expiration Date and the Calculation Agent
shall determine its good faith estimate of the fair
market value for the Shares as of the Valuation Time on
that eighth Exchange Business Day or on any subsequent
Exchange Business Day, as the Calculation Agent shall
determine using commercially reasonable means.

	 	 	 	First Expiration Date: July 15, 2016, subject to Market Disruption Event below.

	 	 	 	Automatic Exercise: Applicable; and means that, unless all Warrants have been previously
exercised hereunder, a number of Warrants for each Expiration Date equal to the Daily
Number of Warrants (as adjusted pursuant to the terms hereof) for such Expiration Date
will be deemed to be automatically exercised.

	 	 	 	Market Disruption Event: Section 4.3(a)(ii) is hereby amended by adding after the words “or
Share Basket Transaction” in the first line thereof a phrase “a failure by the Exchange
or Related Exchange to open for trading during its regular trading session or” and
replacing the phrase “during the one-half hour period that ends at the relevant
Valuation Time” with the phrase “at any time during the regular trading session on the
Exchange or any Related Exchange, without regard to after hours or any other trading
outside of the regular trading session hours”.

Valuation applicable to each Warrant:

	 	 	 	Valuation Time: At the close of trading of the regular trading session on the Exchange;
provided that if the principal trading session is extended, the Calculation Agent shall
determine the Valuation Time in its reasonable discretion.

	 	 	 	Valuation Date: Each Exercise Date. Notwithstanding anything to the contrary in the Equity
Definitions, if there is a Market Disruption Event on any Valuation Date, then the
Calculation Agent shall determine the Settlement Price for such Valuation Date on the
basis of its good faith estimate of the market value for the relevant Shares on such
Valuation Date.

Settlement Terms applicable to the Transaction:

	 	 	Method of Settlement: Net Share Settlement; and means that, on each Settlement Date, Company shall
deliver to JPMorgan, the Share Delivery Quantity of Shares for such Settlement Date to the
account specified hereto free of payment through the Clearance System.

	 	 	Share Delivery Quantity: For any Settlement Date, a number of Shares, as calculated by the
Calculation Agent, equal to the Net Share Settlement Amount for such Settlement Date divided
by the Settlement Price on the Valuation Date in respect of such Settlement Date, plus cash in
lieu of any fractional shares (based on such Settlement Price).

	 	 	Net Share Settlement Amount: For any Settlement Date, an amount equal to the product of (i) the
Number of Warrants being exercised on the relevant Exercise Date (or in the case of any
exercise (including any Automatic Exercise) on an Expiration Date, the Daily Number of
Warrants for such Expiration Date), (ii) the Strike Price Differential for such Settlement
Date and (iii) the Warrant Entitlement. For avoidance of doubt, if any Warrants are exercised
prior to the first Expiration Date, the Calculation Agent will proportionately adjust each
Daily Number of Warrants to reflect such exercise.

	 	 	Strike Price Differential: (a) If the Settlement Price for any Valuation Date is greater than the
Strike Price, an amount equal to the excess of such Settlement Price over the Strike Price; or

(b) If such Settlement Price is less than or equal to
the Strike Price, zero.

	 	 	Settlement Price: For any Valuation Date, the per Share volume-weighted average prices for such
Valuation Date as displayed under the heading “Bloomberg VWAP” on Bloomberg page GPI.N
<equity> AQR (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00
p.m. (New York City time) on such Valuation Date (or if such volume-weighted average price is
unavailable, the market value of one Share on such Valuation Date, as determined by the
Calculation Agent).

	 	 	Settlement Date: For any Exercise Date, the date defined as such in Section 6.2 of the Equity
Definitions, subject to Section 9(p)(i) hereof.

Failure to Deliver: Inapplicable

	 	 	Other Applicable Provisions: The provisions of Sections 6.6, 6.7, 6.8, 6.9 and 6.10 of the Equity
Definitions will be applicable, except that all references in such provisions to
“Physically-Settled” shall be read as references to “Net Share Settled”. “Net Share Settled”
in relation to any Warrant means that Net Share Settlement is applicable to that Warrant.

3. Additional Terms applicable to the Transaction:

Adjustments applicable to the Warrants:

	 	 	 	Method of Adjustment: Calculation Agent Adjustment. For avoidance of doubt, in making any
adjustments under the Equity Definitions, the Calculation Agent may adjust the Strike
Price, the Number of Warrants, the Daily Number of Warrants and the Warrant Entitlement.
Notwithstanding the foregoing, any cash dividends or distributions, whether or not
extraordinary, shall be governed by Section 9(k) of this Confirmation and not by Section
9.1(c) of the Equity Definitions.

Extraordinary Events applicable to the Transaction:

Consequence of Merger Events

	 	(a)	 	Share-for-Share: Alternative Obligation; provided that, if the Calculation Agent
determines in good faith that the Merger Event affects the theoretical value of the
Transaction, the Calculation Agent shall make adjustments to any of the Strike Price, the
Number of Warrants, the Daily Number of Warrants, the Warrant Entitlement and any other
term necessary to reflect the characteristics (including volatility, dividend practice,
borrow cost, policy and liquidity) of the New Shares; provided further that Cancellation
and Payment shall apply if (i) the Calculation Agent determines that no adjustments made
pursuant to the preceding proviso will produce a commercially reasonable result or (ii)
the New Shares are not publicly traded on a United States national securities exchange or
quoted on the NASDAQ National Market.

(b) Share-for-Other: Cancellation and Payment

	 	(c)	 	Share-for-Combined: Cancellation and Payment; provided that on or prior to the
Merger Date, JPMorgan may elect, based on its commercially reasonable judgment, for the
consequence specified opposite “Share for Share” to apply to that portion of the
consideration that consists of New Shares (as determined by the Calculation Agent) and
for the consequence specified opposite “Share-for-Other” to apply to that portion of the
consideration that consists of Other Consideration (as determined by the Calculation
Agent).

Nationalization or Insolvency: Cancellation and Payment

	4.	 	Calculation Agent: JPMorgan

5. Account Details:

(a) Account for payments to Company:

Comerica Bank

ABA#072-000-096

Acct Name: Group 1 Automotive

Acct No.: 1850-796648

Account for delivery of Shares to Company:

Mr. Cory McQuillen

Broker/Dealer Services

Mellon Investor Services, LLC

85 Challenger Rd.

Ridgefield Park, NJ 07660

Group 1 Automotive, Inc.

CUSIP 398905109

Mellon Securities DTC# 0352

	 	(b)	 	Account for payments to JPMorgan:

JPMorgan Chase Bank, National Association, New York

ABA: 021 000 021

Favour: JPMorgan Chase Bank National Association, – London

A/C: 0010962009

CHASUS33

Account for delivery of Shares from JPMorgan:

DTC 0060

6. Offices:

The Office of Company for the Transaction is: Inapplicable, Company is not a Multibranch Party.

The Office of JPMorgan for the Transaction is: New York

JPMorgan Chase Bank, National Association

London Branch

P.O. Box 161

60 Victoria Embankment

London EC4Y 0JP

England

7. Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Company:

	 	 	 	 	 
	Group 1 Automotive, Inc.
950 Echo Lane, Suite 100
Houston, TX 77024
Attention: Kim Craig
Telephone No.:
	 	 	(713) 647-5742	 
	Facsimile No.:
	 	 	(713) 647-5858	 

Address for notices or communications to JPMorgan:

JPMorgan Chase Bank, National Association

277 Park Avenue, 11th Floor

New York, NY 10172

Attention: Nathan Lulek

EDG Corporate Marketing

Telephone No: (212) 622-2262

Facsimile No: (212) 622-8091

8. Representations and Warranties of Company

The representations and warranties of Company set forth in Section 4 of the Purchase Agreement (the
“Purchase Agreement”) dated as of the Trade Date between Company and J.P. Morgan Securities Inc.
are true and correct and are hereby deemed to be repeated to JPMorgan as if set forth herein.
Company hereby further represents and warrants to JPMorgan that:

	 	(a)	 	Company has all necessary corporate power and authority to execute, deliver and
perform its obligations in respect of this Transaction; such execution, delivery and
performance have been duly authorized by all necessary corporate action on Company’s
part; and this Confirmation has been duly and validly executed and delivered by Company
and constitutes its valid and binding obligation, enforceable against Company in
accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in equity) and
except that rights to indemnification and contribution thereunder may be limited by
federal or state securities laws or public policy relating thereto.

	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Company hereunder will conflict with or result in a
breach of the certificate of incorporation or by-laws (or any equivalent documents) of
Company, or any applicable law or regulation, or any order, writ, injunction or decree
of any court or governmental authority or agency, or any agreement or instrument to
which Company or any of its subsidiaries is a party or by which Company or any of its
subsidiaries is bound or to which Company or any of its subsidiaries is subject (other
than any conflict or breach that is not material), or constitute a default under, or
result in the creation of any lien under, any such agreement or instrument (other than
any default or lien that is not material), or breach or constitute a default under any
agreements and contracts of Company and its significant subsidiaries filed as exhibits
to Company’s Annual Report on Form 10-K for the year ended December 31, 2005 (other
than any breach or default that is not material), as updated by any subsequent filings.

	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required in connection with the execution,
delivery or performance by Company of this Confirmation, except such as have been
obtained or made and such as may be required under the Securities Act of 1933, as
amended (the “Securities Act”) or state securities laws.

	 	(d)	 	The Shares of Company initially issuable upon exercise of the Warrant by the
net share settlement method (the “Warrant Shares”) have been reserved for issuance by
all required corporate action of Company. The Warrant Shares have been duly authorized
and, when delivered against payment therefor (which may include Net Share Settlement in
lieu of cash) and otherwise as contemplated by the terms of the Warrant following the
exercise of the Warrant in accordance with the terms and conditions of the Warrant,
will be validly issued, fully-paid and non-assessable, and the issuance of the Warrant
Shares will not be subject to any preemptive or similar rights.

	 	(e)	 	Company is an “eligible contract participant” (as such term is defined in
Section 1a(12) of the Commodity Exchange Act, as amended (the “CEA”) because one or
more of the following is true:

Company is a corporation, partnership, proprietorship, organization, trust or other
entity and:

	 	(A)	 	Company has total assets in excess of USD 10,000,000;

	 	(B)	 	the obligations of Company hereunder are guaranteed, or
otherwise supported by a letter of credit or keepwell, support or other
agreement, by an entity of the type described in Section 1a(12)(A)(i) through
(iv), 1a(12)(A)(v)(I), 1a(12)(A)(vii) or 1a(12)(C) of the CEA; or

	 	(C)	 	Company has a net worth in excess of USD 1,000,000 and has
entered into this Agreement in connection with the conduct of Company’s
business or to manage the risk associated with an asset or liability owned or
incurred or reasonably likely to be owned or incurred by Company in the conduct
of Company’s business.

	 	(f)	 	Company and each of its affiliates is not, on the date hereof, in possession of
any material non-public information with respect to Company.

9. Other Provisions:

	 	(a)	 	Opinions. Company shall deliver an opinion of counsel in form and
substance reasonably acceptable to JPMorgan, dated as of the Trade Date, to JPMorgan
with respect to the matters set forth in Sections 8(a) through (d) of this
Confirmation.

	 	(b)	 	Amendment. If the Initial Purchaser party to the Purchase Agreement
exercises its right to receive additional Convertible Notes pursuant to the Initial
Purchasers’ option to purchase additional Convertible Notes, then, at the discretion of
Company, JPMorgan and Company will either enter into a new confirmation or amend this
Confirmation to provide for such increase in Convertible Notes (but on pricing terms
acceptable to JPMorgan and Company) (such additional confirmation or amendment to this
Confirmation to provide for the payment by Company to JPMorgan of the additional
premium related thereto). “Convertible Notes” mean the 2.25% Convertible Senior Notes
due 2036 issued by Company pursuant to an Indenture to be dated June 26, 2006 between
Company and Wells Fargo Bank, N.A., as trustee.

	 	(c)	 	No Reliance, etc. Each party represents that (i) it is entering into
the Transaction evidenced hereby as principal (and not as agent or in any other
capacity); (ii) neither the other party or parties nor any of its or their agents are
acting as a fiduciary for it; (iii) it is not relying upon any representations except
those expressly set forth in the Agreement or this Confirmation; (iv) it has not relied
on the other party or parties for any legal, regulatory, tax, business, investment,
financial, and accounting advice, and it has made its own investment, hedging, and
trading decisions based upon its own judgment and not upon any view expressed by the
other party or parties or any of its or their agents; and (v) it is entering into this
Transaction with a full understanding of the terms, conditions and risks thereof and it
is capable of and willing to assume those risks.

	 	(d)	 	Repurchase Notices. Company shall, on any day on which Company effects
any repurchase of Shares, promptly give JPMorgan a written notice of such repurchase (a
“Repurchase Notice”) on such day if following such repurchase, the number of
outstanding Shares on such day, subject to any adjustments provided herein, is (i) less
than 1,956,240 or (ii) more than 250,000 less than the number of Shares included in the
immediately preceding Repurchase Notice. Company agrees to indemnify and hold harmless
JPMorgan and its affiliates and their respective officers, directors, employees,
affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”)
from and against any and all losses (including losses relating to JPMorgan’s hedging
activities as a consequence of becoming, or of the risk of becoming, a Section 16
“insider”, including without limitation, any forbearance from hedging activities or
cessation of hedging activities and any losses in connection therewith with respect to
this Transaction), claims, damages, judgments, liabilities and expenses (including
reasonable attorney’s fees), joint or several, which an Indemnified Person actually may
become subject to, a result of Company’s failure to provide JPMorgan with a Repurchase
Notice on the day and in the manner specified in this paragraph, and to reimburse,
within 30 days, upon written request, each of such Indemnified Persons for any
reasonable legal or other expenses incurred in connection with investigating, preparing
for, providing testimony or other evidence in connection with or defending any of the
foregoing. If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against the Indemnified
Person, such Indemnified Person shall promptly notify Company in writing, and Company,
upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to
the Indemnified Person to represent the Indemnified Person and any others Company may
designate in such proceeding and shall pay the fees and expenses of such counsel
related to such proceeding. Company shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, Company agrees to indemnify any
Indemnified Person from and against any loss or liability by reason of such settlement
or judgment. Company shall not, without the prior written consent of the Indemnified
Person, effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Person is or could have been a party and indemnity could have
been sought hereunder by such Indemnified Person, unless such settlement includes an
unconditional release of such Indemnified Person from all liability on claims that are
the subject matter of such proceeding on terms reasonably satisfactory to such
Indemnified Person. If the indemnification provided for in this paragraph is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then Company under such paragraph, in lieu
of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid
or payable by such Indemnified Person as a result of such losses, claims, damages or
liabilities. The remedies provided for in this paragraph are not exclusive and shall
not limit any rights or remedies which may otherwise be available to any Indemnified
Person at law or in equity. The indemnity and contribution agreements contained in
this paragraph shall remain operative and in full force and effect regardless of the
termination of this Transaction. 

	 	(e)	 	Regulation M. Company was not on the Trade Date and is not on the date
hereof engaged in a distribution, as such term is used in Regulation M under the
Securities Exchange Act of 1934, as amended (“Exchange Act”), of any securities of
Company, other than a distribution meeting the requirements of the exception set forth
in Rules 101(b)(10) and 102(b)(7) of Regulation M. Company shall not, until the fifth
Exchange Business Day immediately following the Trade Date, engage in any such
distribution.

	 	(f)	 	No Manipulation. Company is not entering into this Transaction to
create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares).

	 	(g)	 	Board Authorization. Company represents that it is entering into the
Transaction, solely for the purposes stated in the board resolution authorizing this
Transaction and in its public disclosure. Company further represents that there is no
internal policy, whether written or oral, of Company that would prohibit Company from
entering into any aspect of this Transaction, including, but not limited to, the
issuance of Shares to hereunder.

	 	(h)	 	Transfer or Assignment. Company may not transfer any of its rights or
obligations under this Transaction without the prior written consent of JPMorgan.
JPMorgan may, without Company’s consent, transfer or assign all or any part of its
rights or obligations under this Transaction to any third party with a rating for its
long term, unsecured and unsubordinated indebtedness of A- or better by Standard &
Poor’s Ratings Service or its successor (“S&P”), or A3 or better by Moody’s Investors
Service (“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least an
equivalent rating or better by a substitute rating agency mutually agreed by Company
and JPMorgan. Notwithstanding any other provision in this Confirmation to the contrary
requiring or allowing JPMorgan to purchase, sell, receive or deliver any shares or
other securities to or from Company, JPMorgan may designate any of its affiliates to
purchase, sell, receive or deliver such shares or other securities and otherwise to
perform JPMorgan’s obligations in respect of this Transaction and any such designee may
assume such obligations. JPMorgan shall be discharged of its obligations to Company to
the extent of any such performance.

	 	(i)	 	Damages. Neither party shall be liable under Section 6.10 of the
Equity Definitions for special, indirect or consequential damages, even if informed of
the possibility thereof, except as specifically set forth otherwise herein.

	 	(j)	 	Early Unwind. In the event the sale of Convertible Notes is not
consummated with the initial purchasers for any reason by the close of business in New
York on June 26, 2006 (or such later date as agreed upon by the parties) (June 26, 2006
or such later date as agreed upon being the “Early Unwind Date”), this Transaction
shall automatically terminate (the “Early Unwind”), on the Early Unwind Date and (i)
the Transaction and all of the respective rights and obligations of JPMorgan and
Company under the Transaction shall be cancelled and terminated and (ii) each party
shall be released and discharged by the other party from and agrees not to make any
claim against the other party with respect to any obligations or liabilities of the
other party arising out of and to be performed in connection with the Transaction
either prior to or after the Early Unwind Date; provided that, if the sale of the
Convertible Notes is not consummated with the initial purchasers by the close of
business in New York on the Early Unwind Date as a result of a failure by Company to
satisfy any condition to closing contained in Section 6 of the Purchase Agreement,
Company shall purchase from JPMorgan on the Early Unwind Date all Shares purchased by
JPMorgan or one or more of its affiliates and reimburse JPMorgan for any costs or
expenses (including market losses) relating to the unwinding of its hedging activities
in connection with the Transaction (including any loss or cost incurred as a result of
its terminating, liquidating, obtaining or reestablishing any hedge or related trading
position). The amount of any such reimbursement shall be determined by JPMorgan in its
sole good faith discretion. JPMorgan shall notify Company of such amount and Company
shall pay such amount in immediately available funds on the Early Unwind Date.
JPMorgan and Company represent and acknowledge to the other that, subject to the
proviso included in this paragraph, upon an Early Unwind, all obligations with respect
to the Transaction shall be deemed fully and finally discharged.

	 	(k)	 	Dividends. If at any time during the period from and including the
Trade Date, to but excluding the Expiration Date, an ex-dividend date for a cash
dividend occurs with respect to the Shares (an “Ex-Dividend Date”), and that dividend
is greater than the Regular Dividend on a per Share basis then the Calculation Agent
will adjust the Strike Price, the Number of Warrants, the Daily Number of Warrants and
the Warrant Entitlement to preserve the fair value of the Warrant to JPMorgan after
taking into account such dividend. “Regular Dividend” shall mean USD 0.1400 per Share
per quarter.

	 	(l)	 	Role of Agent. Each party agrees and acknowledges that (i) J.P. Morgan
Securities Inc., an affiliate of JPMorgan (“JPMSI”), has acted solely as agent and not
as principal with respect to this Transaction and (ii) JPMSI has no obligation or
liability, by way of guaranty, endorsement or otherwise, in any manner in respect of
this Transaction (including, if applicable, in respect of the settlement thereof). Each
party agrees it will look solely to the other party (or any guarantor in respect
thereof) for performance of such other party’s obligations under this Transaction.

	 	(m)	 	Additional Provisions.

(i) Notwithstanding Section 9.7 of the Equity Definitions, everything in the first
paragraph of Section 9.7(b) of the Equity Definitions after the words “Calculation
Agent” in the third line through the remainder of such Section 9.7 shall be deleted
and replaced with the following:

“based on an amount representing the Calculation Agent’s determination of the fair
value to Buyer of an option with terms that would preserve for Buyer the economic
equivalent of any payment or delivery (assuming satisfaction of each applicable
condition precedent) by the parties in respect of the relevant Transaction that
would have been required after that date but for the occurrence of the Merger Event,
Nationalization, as the case may be.”

(ii) Notwithstanding anything to the contrary in this Confirmation, upon the
occurrence of one of the following events, with respect to this Transaction, (1)
JPMorgan shall have the right to designate such event an Additional Termination
Event and designate and Early Termination Date pursuant to Section 6(b) of the
Agreement, and (2) Company shall be deemed the sole Affected Party and the
Transaction shall be deemed the sole Affected Transaction:

(A) Company sells of all or substantially all of its assets in a transaction
pursuant to which the Shares are converted into cash, securities or other
property.

(B) There is a default by Company or any subsidiary in the payment of the
principal or interest on any mortgage, agreement or other instrument under which
there may be outstanding, or by which there may be secured or evidenced any
indebtedness for money borrowed in excess of $25 million in the aggregate of
Company and/or any subsidiary, whether such indebtedness now exists or shall
hereafter be created resulting in such indebtedness becoming or being declared
due and payable, and such acceleration shall not have been rescinded or annulled
within 10 days after written notice of such acceleration has been received by
Company or such subsidiary.

(C) At any time during the period from and including the Trade Date, to and
including the Expiration Date, the Shares cease to be listed or quoted on the
Exchange (a “Share De-listing”) for any reason (other than a Merger Event as a
result of which the shares of common stock underlying the Warrants are listed or
quoted on The New York Stock Exchange, The American Stock Exchange or the NASDAQ
National Market (or their respective successors) (the “Successor Exchange”)) and
are not immediately re-listed or quoted as of the date of such de-listing on the
Successor Exchange.

	 	(n)	 	No Collateral or Setoff. Notwithstanding any provision of the
Agreement or any other agreement between the parties to the contrary, the obligations
of Company hereunder are not secured by any collateral. Obligations under this
Transaction shall not be set off by Company against any other obligations of the
parties, whether arising under the Agreement, this Confirmation, under any other
agreement between the parties hereto, by operation of law or otherwise. Any provision
in the Agreement with respect to the satisfaction of Company’s payment obligations to
the extent of JPMorgan’s payment obligations to Company in the same currency and in the
same Transaction (including, without limitation Section 2(c) thereof) shall not apply
to Company and, for the avoidance of doubt, Company shall fully satisfy such payment
obligations notwithstanding any payment obligation to Company by JPMorgan in the same
currency and in the same Transaction. In calculating any amounts under Section 6(e) of
the Agreement, notwithstanding anything to the contrary in the Agreement, (1) separate
amounts shall be calculated as set forth in such Section 6(e) with respect to (a) this
Transaction and (b) all other Transactions, and (2) such separate amounts shall be
payable pursuant to Section 6(d)(ii) of the Agreement.

	 	(o)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If, in respect of this Transaction, an amount is payable by
Company to JPMorgan, (i) pursuant to Section 9.7 of the Equity Definitions (except in
the event of a Nationalization or Insolvency or a Merger Event, in each case, in which
the consideration to be paid to holders of Shares consists solely of cash) or (ii)
pursuant to Section 6(d)(ii) of the Agreement (except in the event of an Event of
Default in which Company is the Defaulting Party or a Termination Event in which
Company is the Affected Party, other than an Event of Default of the type described in
Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event
of the type described in Section 5(b)(i), (ii), (iii), (iv), (v) or (vi) of the
Agreement in each case that resulted from an event or events outside Company’s control)
(a “Payment Obligation”), Company may, in its sole discretion, satisfy any such Payment
Obligation by the Share Termination Alternative (as defined below) and shall give
irrevocable telephonic notice to JPMorgan, confirmed in writing within one Currency
Business Day, no later than 12:00 p.m. New York local time on the Merger Date, the date
of the occurrence of the Nationalization or Insolvency, or Early Termination Date, as
applicable; provided that if Company does not validly elect to satisfy its Payment
Obligation by the Share Termination Alternative, JPMorgan shall have the right to
require Company to satisfy its Payment Obligation by the Share Termination Alternative,
notwithstanding Company’s election to satisfy its Payment Obligation by cash.
Notwithstanding the foregoing, Company’s or JPMorgan’s right to elect satisfaction
of a Payment Obligation in the Share Termination Alternative as set forth in this
clause shall only apply to Transactions under this Confirmation and, notwithstanding
anything to the contrary in the Agreement, (1) separate amounts shall be calculated
with respect to (a) Transactions hereunder and (b) all other Transactions under the
Agreement, and (2) such separate amounts shall be payable pursuant to Section 6(d)(ii)
of the Agreement, subject to, in the case of clause (a), Company’s Share Termination
Alternative right hereunder.

	 	 	 	Share Termination Alternative: Applicable and means that Company
shall deliver to JPMorgan the Share Termination Delivery Property on the date
(the “Share Termination Payment Date”) when the Payment Obligation would
otherwise be due, subject to paragraph (p)(i) below, in satisfaction, subject
to paragraph (p)(ii) below, of the Payment Obligation in the manner reasonably
requested by JPMorgan free of payment.

	 	 	 	Share Termination Delivery Property: A number of Share Termination
Delivery Units, as calculated by the Calculation Agent, equal to the Payment
Obligation divided by the Share Termination Unit Price. The Calculation Agent
shall adjust the Share Termination Delivery Property by replacing any
fractional portion of a security therein with an amount of cash equal to the
value of such fractional security based on the values used to calculate the
Share Termination Unit Price.

	 	 	 	Share Termination Unit Price: The market value of property contained
in one Share Termination Delivery Unit on the date such Share Termination
Delivery Units are to be delivered as Share Termination Delivery Property, as
determined by the Calculation Agent in its discretion by commercially
reasonable means and notified by the Calculation Agent to Company at the time
of notification of the Payment Obligation. In the case of a Private Placement
of Share Termination Delivery Units that are Restricted Shares (as defined
below) as set forth in paragraph (p)(i) below, the Share Termination Unit Price
shall be determined by the discounted Settlement Price applicable to such Share
Termination Delivery Units. In the case of a Registered Settlement of Share
Termination Delivery Units that are Restricted Shares (as defined below) as set
forth in paragraph (p)(ii) below, the Share Termination Unit Price shall be the
Settlement Price, as discounted, on the Merger Date, the date of the occurrence
of the Nationalization or Insolvency, or Early Termination Date, as applicable.

	 	 	 	Share Termination Delivery Unit: In the case of a Termination Event
or Event of Default, one Share or, in the case of Nationalization or Insolvency
or a Merger Event, a unit consisting of the number or amount of each type of
property received by a holder of one Share (without consideration of any
requirement to pay cash or other consideration in lieu of fractional amounts of
any securities) in such Nationalization or Insolvency or such Merger Event. If
such Merger Event involves a choice of consideration to be received by holders,
such holder shall be deemed to have elected to receive the maximum possible
amount of cash.

	 	 	 	Failure to Deliver: Inapplicable

	 	 	 	Other applicable provisions: If this Transaction is to be Share
Termination Settled, the provisions of Sections 6.6, 6.7, 6.8, 6.9 and 6.10 (as
modified above) of the Equity Definitions will be applicable, except that all
references in such provisions to “Physically-Settled” shall be read as
references to “Share Termination Settled” and all references to “Shares” shall
be read as references to “Share Termination Delivery Units”. “Share
Termination Settled” in relation to this Transaction means that Share
Termination Settlement is applicable to this Transaction.

	 	(p)	 	Registration/Private Placement Procedures. If based on the advice of
its counsel, JPMorgan determines that, following any delivery of Shares or Share
Termination Delivery Property to JPMorgan hereunder, such Shares or Share Termination
Delivery Property would be in the hands of JPMorgan subject to any applicable
restrictions with respect to any registration or qualification requirement or
prospectus delivery requirement for such Shares or Share Termination Delivery Property
pursuant to any applicable federal or state securities law (including, without
limitation, any such requirement arising under Section 5 of the Securities Act as a
result of such Shares or Share Termination Delivery Property being “restricted
securities”, as such term is defined in Rule 144 under the Securities Act, or as a
result of the sale of such Shares or Share Termination Delivery Property being subject
to paragraph (c) of Rule 145 under the Securities Act) (such Shares or Share
Termination Delivery Property, “Restricted Shares”), then delivery of such Restricted
Shares shall be effected pursuant to either clause (i) or (ii) below at the election of
Company, unless waived by JPMorgan. Notwithstanding the foregoing, solely in respect
of any Daily Number of Warrants exercised or deemed exercised on any Expiration Date,
Company shall elect, prior to the first Settlement Date for the first Expiration Date,
a Private Placement Settlement or Registered Settlement for all deliveries of
Restricted Shares for all such Expiration Dates which election shall be applicable to
all Settlement Dates for such Daily Number of Warrants and the procedures in clause (i)
or clause (ii) below shall apply for all such delivered Restricted Shares on an
aggregate basis commencing after the final Settlement Date for such Daily Number of
Warrants. The Calculation Agent shall make reasonable adjustments to settlement terms
and provisions under this Confirmation to reflect a single Private Placement or
Registered Settlement for such aggregate Restricted Shares delivered hereunder.

	 	(i)	 	If Company elects to settle the Transaction pursuant to this
clause (i) (a “Private Placement Settlement”), then delivery of Restricted
Shares by Company shall be effected in customary private placement procedures
with respect to such Restricted Shares reasonably acceptable to JPMorgan;
provided that Company may not elect a Private Placement Settlement if, on the
date of its election, it has taken, or caused to be taken, any action that
would make unavailable either the exemption pursuant to Section 4(2) of the
Securities Act for the sale by Company to JPMorgan (or any affiliate designated
by JPMorgan) of the Restricted Shares or the exemption pursuant to Section 4(1)
or Section 4(3) of the Securities Act for resales of the Restricted Shares by
JPMorgan (or any such affiliate of JPMorgan). The Private Placement Settlement
of such Restricted Shares shall include customary representations, covenants,
blue sky and other governmental filings and/or registrations, indemnities to
JPMorgan, due diligence rights (for JPMorgan or any designated buyer of the
Restricted Shares by JPMorgan), opinions and certificates, and such other
documentation as is customary for private placement agreements, all reasonably
acceptable to JPMorgan. In the case of a Private Placement Settlement,
JPMorgan shall determine the appropriate discount to the Share Termination Unit
Price (in the case of settlement of Share Termination Delivery Units pursuant
to paragraph (p) above) or any Settlement Price (in the case of settlement of
Shares pursuant to Section 2 above) applicable to such Restricted Shares in a
commercially reasonable manner and appropriately adjust the number of such
Restricted Shares to be delivered to JPMorgan hereunder; provided that in no
event shall such discount take into account any period of time after the
Settlement Date, or the date on which the Payment Obligation is due; provided
further that in no event such number shall be greater than 3,365,340 (the
“Maximum Amount”). Notwithstanding the Agreement or this Confirmation, the
date of delivery of such Restricted Shares shall be the Exchange Business Day
following notice by JPMorgan to Company, of such applicable discount and the
number of Restricted Shares to be delivered pursuant to this clause (i). For
the avoidance of doubt, delivery of Restricted Shares shall be due as set forth
in the previous sentence and not be due on the Share Termination Payment Date
(in the case of settlement of Share Termination Delivery Units pursuant to
paragraph (o) above) or on the Settlement Date for such Restricted Shares (in
the case of settlement of Shares pursuant to Section 2 above), except to the
extent the number of Restricted Shares to be delivered would require the
approval of Company’s shareholders (as required by Rule 312.03 of the New York
Stock Exchange Rules (“Rule 312.03”), in which event Company shall deliver that
amount of Restricted Shares not requiring such approval.

To the extent Company’s issuance of Restricted Shares following an election
of Private Placement Settlement requires the approval of Company’s
shareholders (as required by Rule 312.03 of the New York Stock Exchange
Rules (“Rule 312.03”)), Company shall use its reasonable best efforts to
obtain either (A) such required shareholder approval or (B) a waiver from
the New York Stock Exchange, waiving the application of Rule 312.03 to
Company’s issuance of Restricted Shares.

In the event Company shall not have delivered the full number of Restricted
Shares otherwise applicable as a result of the proviso above relating to the
Maximum Amount and/or the application of Rule 312.03 (such deficit, the
“Deficit Restricted Shares”), Company shall be continually obligated to
deliver, from time to time until the full number of Deficit Restricted
Shares have been delivered pursuant to this paragraph, Restricted Shares
when, and to the extent, that (i) Shares are repurchased, acquired or
otherwise received by Company or any of its subsidiaries after the Trade
Date (whether or not in exchange for cash, fair value or any other
consideration), (ii) authorized and unissued Shares reserved for issuance in
respect of other transactions prior to such date which prior to such
Settlement Date become no longer so reserved, (iii) Company additionally
authorizes and unissued Shares that are not reserved for other transactions,
or (iv) the shareholders of the Company have approved such issuance or the
Company has obtained a waiver of the application of Rule 312.03 from the New
York Stock Exchange. Company shall immediately notify JPMorgan of the
occurrence of any of the foregoing events (including the number of Shares
subject to clause (i), (ii), (iii) and (iv) and the corresponding number of
Restricted Shares to be delivered) and promptly deliver such Restricted
Shares thereafter.

In the event of a Private Placement, the Net Share Settlement Amount or the
Payment Obligation, respectively, shall be deemed to be the Net Share
Settlement Amount or the Payment Obligation, respectively, plus an
additional amount (determined from time to time by the Calculation Agent in
its commercially reasonable judgment) attributable to interest that would be
earned on such Net Share Settlement Amount or the Payment Obligation,
respectively, (increased on a daily basis to reflect the accrual of such
interest and reduced from time to time by the amount of net proceeds
received by JPMorgan as provided herein) at a rate equal to the open Federal
Funds Rate plus the Spread for the period from, and including, such
Settlement Date or the date on which the Payment Obligation is due,
respectively, to, but excluding, the related date on which all the
Restricted Shares have been sold and calculated on an Actual/360 basis. The
foregoing provision shall be without prejudice to JPMorgan’s rights under
the Agreement (including, without limitation, Sections 5 and 6 thereof).

As used in this clause (i), “Spread” means, with respect to any Net
Share Settlement Amount or Payment Obligation, respectively, the credit
spread over the applicable overnight rate that would be imposed if JPMorgan
were to extend credit to Company in an amount equal to such Net Share
Settlement Amount, all as determined by the Calculation Agent using its
commercially reasonable judgment as of the related Settlement Date or the
date on which the Payment Obligation is due, respectively. Commercial
reasonableness shall take into consideration all factors deemed relevant by
the Calculation Agent, which are expected to include, among other things,
the credit quality of Company (and any relevant affiliates) in the
then-prevailing market and the credit spread of similar companies in the
relevant industry and other companies having a substantially similar credit
quality.

	 	(ii)	 	If Company elects to settle the Transaction pursuant to this
clause (ii) (a “Registration Settlement”), then Company shall promptly (but in
any event no later than the beginning of the Resale Period) file and use its
reasonable best efforts to make effective under the Securities Act a
registration statement or supplement or amend an outstanding registration
statement in form and substance reasonably satisfactory to JPMorgan, to cover
the resale of such Restricted Shares in accordance with customary resale
registration procedures, including covenants, conditions, representations,
underwriting discounts (if applicable), commissions (if applicable),
indemnities, due diligence rights, opinions and certificates, and such other
documentation as is customary for equity resale underwriting agreements, all
reasonably acceptable to JPMorgan. If JPMorgan, in its sole reasonable
discretion, is not satisfied with such procedures and documentation Private
Placement Settlement shall apply. If JPMorgan is satisfied with such
procedures and documentation, it shall sell the Restricted Shares pursuant to
such registration statement during a period (the “Resale Period”) commencing on
the Exchange Business Day following delivery of such Restricted Shares (which,
for the avoidance of doubt, shall be (x) any Settlement Date in the case of an
exercise of Warrants prior to the first Expiration Date pursuant to Section 2
above, (y) the Share Termination Payment Date in case of settlement of Share
Termination Delivery Units pursuant to paragraph (o) above or (z) the
Settlement Date in respect of the final Expiration Date for all Daily Number of
Warrants) and ending on the earliest of (i) the Exchange Business Day on which
JPMorgan completes the sale of all Restricted Shares or, in the case of
settlement of Share Termination Delivery Units, a sufficient number of
Restricted Shares so that the realized net proceeds of such sales exceed the
Payment Obligation (as defined above), (ii) the date upon which all Restricted
Shares have been sold or transferred pursuant to Rule 144 (or similar
provisions then in force) or Rule 145(d)(1) or (2) (or any similar provision
then in force) under the Securities Act and (iii) the date upon which all
Restricted Shares may be sold or transferred by a non-affiliate pursuant to
Rule 144(k) (or any similar provision then in force) or Rule 145(d)(3) (or any
similar provision then in force) under the Securities Act. If the Payment
Obligation exceeds the realized net proceeds from such resale, Company shall
transfer to JPMorgan by the open of the regular trading session on the Exchange
on the Exchange Business Day immediately following the last day of the Resale
Period the amount of such excess (the “Additional Amount”) in cash or in a
number of Shares (“Make-whole Shares”) in an amount that, based on the
Settlement Price on the last day of the Resale Period (as if such day was the
“Valuation Date” for purposes of computing such Settlement Price), has a dollar
value equal to the Additional Amount. The Resale Period shall continue to
enable the sale of the Make-whole Shares. If Company elects to pay the
Additional Amount in Shares, the requirements and provisions for Registration
Settlement shall apply. This provision shall be applied successively until the
Additional Amount is equal to zero. In no event shall Company deliver a number
of Restricted Shares greater than the Maximum Amount.

	 	(iii)	 	Without limiting the generality of the foregoing and subject
to any change or amendment that affects the effectiveness of Rule 144 under the
Securities Act, Company agrees that any Restricted Shares delivered to
JPMorgan, as purchaser of such Restricted Shares, (i) may be transferred by and
among JPMorgan Chase Bank and its affiliates and Company shall effect such
transfer without any further action by JPMorgan and (ii) after the minimum
“holding period” within the meaning of Rule 144(d) under the Securities Act has
elapsed after any Settlement Date for such Restricted Shares, Company shall
promptly remove, or cause the transfer agent for such Restricted Shares to
remove, any legends referring to any such restrictions or requirements from
such Restricted Shares upon delivery by JPMorgan (or such affiliate of
JPMorgan) to Company or such transfer agent of seller’s and broker’s
representation letters customarily delivered by JPMorgan in connection with
resales of restricted securities pursuant to Rule 144 under the Securities Act,
without any further requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer tax
stamps or payment of any other amount or any other action by JPMorgan (or such
affiliate of JPMorgan).

If the Private Placement Settlement or the Registration Settlement shall not be
effected as set forth in clauses (i) or (ii), as applicable, then failure to effect
such Private Placement Settlement or such Registration Settlement shall constitute
an Event of Default with respect to which Company shall be the Defaulting Party.

	 	(q)	 	Limit on Beneficial Ownership. Notwithstanding any other provisions
hereof, JPMorgan may not exercise any Warrant hereunder, and Automatic Exercise shall
not apply with respect thereto, to the extent (but only to the extent) that, after such
receipt, JPMorgan would directly or indirectly beneficially own (as such term is
defined for purposes of Section 13(d) of the Exchange Act) in excess of 8.0% of the
outstanding Shares. Any purported delivery hereunder shall be void and have no effect
to the extent (but only to the extent) that, after such delivery, JPMorgan would
directly or indirectly so beneficially own in excess of 8.0% of the outstanding Shares.
If any delivery owed to JPMorgan hereunder is not made, in whole or in part, as a
result of this provision, Company’s obligation to make such delivery shall not be
extinguished and Company shall make such delivery as promptly as practicable after, but
in no event later than one Business Day after, JPMorgan gives notice to Company that,
after such delivery, JPMorgan would not directly or indirectly so beneficially own in
excess of 8.0% of the outstanding Shares.

	 	(r)	 	Share Deliveries. Subject to Rule 144 of the Securities Act remaining
in effect, Company acknowledges and agrees that, to the extent the holder of this
Warrant is not then an affiliate and has not been an affiliate for 90 days (it being
understood that JPMorgan will not be considered an affiliate under this paragraph
solely by reason of its receipt of Shares pursuant to this Transaction), and otherwise
satisfies all holding period and other requirements of Rule 144 of the Securities Act
applicable to it, any delivery of Shares or Share Termination Property hereunder at any
time after 2 years from the Trade Date shall be eligible for resale under Rule 144(k)
of the Securities Act and Company agrees to promptly remove, or cause the transfer
agent for such Shares or Share Termination Property, to remove, any legends referring
to any restrictions on resale under the Securities Act from the Shares or Share
Termination Property. Company further agrees, for any delivery of Shares or Share
Termination Property hereunder at any time after 1 year from the Trade Date but within
2 years of the Trade Date, to the to the extent the holder of this Warrant then
satisfies the holding period and other requirements of Rule 144 of the Securities Act,
to promptly remove, or cause the transfer agent for such Restricted Share to remove,
any legends referring to any such restrictions or requirements from such Restricted
Shares. Such Restricted Shares will be de-legended upon delivery by JPMorgan (or such
affiliate of JPMorgan) to Company or such transfer agent of customary seller’s and
broker’s representation letters in connection with resales of restricted securities
pursuant to Rule 144 of the Securities Act, without any further requirement for the
delivery of any certificate, consent, agreement, opinion of counsel, notice or any
other document, any transfer tax stamps or payment of any other amount or any other
action by JPMorgan (or such affiliate of JPMorgan). Company further agrees that any
delivery of Shares or Share Termination Delivery Property prior to the date that is 1
year from the Trade Date, may be transferred by and among JPMorgan and its affiliates
and Company shall effect such transfer without any further action by JPMorgan.
Notwithstanding anything to the contrary herein, Company agrees that any delivery of
Shares or Share Termination Delivery Property shall be effected by book-entry transfer
through the facilities of DTC, or any successor depositary, if at the time of delivery,
such class of Shares or class of Share Termination Delivery Property is in book-entry
form at DTC or such successor depositary. Notwithstanding anything to the contrary
herein, to the extent the provisions of Rule 144 of the Securities Act or any successor
rule are amended, or the applicable interpretation thereof by the Securities and
Exchange Commission or any court change after the Trade Date, the agreements of Company
herein shall be deemed modified to the extent necessary, in the opinion of outside
counsel of Company, to comply with Rule 144 of the Securities Act, including Rule
144(k) as in effect at the time of delivery of the relevant Shares or Share Termination
Property.

	 	(s)	 	Hedging Disruption Event. The occurrence of a Hedging Disruption Event
will constitute an Additional Termination Event under the Agreement permitting JPMorgan
to terminate the Transaction, with Company as the sole Affected Party and the
Transaction as the sole Affected Transaction. “Hedging Disruption Event” shall have
occurred if (1) JPMorgan, despite using commercially reasonable efforts, is unable or
reasonably determines that it is impractical or illegal, to (A) borrow Shares to hedge
its exposure with respect to the Transaction at a stock loan rebate rate equal to or in
excess of zero, or the prevailing stock loan rebate rate for the Shares, as determined
by the Calculation Agent, is less than zero; or (B) hedge its obligations pursuant to
this Transaction in the public market without registration under the Securities Act or
as a result of any legal, regulatory or self-regulatory requirements or related
policies and procedures (whether or not such requirements, policies or procedures are
imposed by law or have been voluntarily adopted by JPMorgan).

	 	(t)	 	Governing Law. New York law (without reference to choice of law
doctrine).

	 	(u)	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to this Transaction. Each party (i) certifies that
no representative, agent or attorney of the other party has represented, expressly or
otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into this Transaction, as applicable, by, among
other things, the mutual waivers and certifications provided herein.

	 	(v)	 	Tax Disclosure. Effective from the date of commencement of discussions
concerning the Transaction, Company and each of its employees, representatives, or
other agents may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the Transaction and all materials of any kind
(including opinions or other tax analyses) that are provided to Company relating to
such tax treatment and tax structure.

	 	(w)	 	Maximum Share Delivery. Notwithstanding any other provision of this
Confirmation or the Agreement, in no event will Company be required to deliver more
than the Maximum Amount of Shares in the aggregate to JPMorgan in connection with this
Transaction, subject to the provisions regarding Deficit Restricted Shares.

	 	(x)	 	Status of Claims in Bankruptcy. JPMorgan acknowledges and agrees that
this Confirmation is not intended to convey to JPMorgan rights with respect to the
Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy
proceedings of Company; provided that nothing herein shall limit or shall be deemed to
limit JPMorgan’s right to pursue remedies in the event of a breach by Company of its
obligations and agreements with respect to the Transaction; provided, further, that
nothing herein shall limit or shall be deemed to limit JPMorgan’s rights in respect of
any transactions other than the Transaction.

	 	(y)	 	Securities Contract; Swap Agreement. The parties hereto agree and
acknowledge that JPMorgan is a “financial institution,” “swap participant” and
“financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A)
of Title 11 of the United States Code (the “Bankruptcy Code”). The parties hereto
further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with
respect to which each payment and delivery hereunder is a “settlement payment,” as such
term is defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,”
as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder is a “transfer,” as such term is defined in
Section 101(54) of the Bankruptcy Code, and (B) that JPMorgan is entitled to the
protections afforded by, among other sections, Section 362(b)(6), 362(b)(17), 546(e),
546(g), 555 and 560 of the Bankruptcy Code.

1

Please confirm that the foregoing correctly sets forth the terms of our agreement by
executing this Confirmation and returning it to EDG Confirmation Group, J.P. Morgan Securities
Inc., 277 Park Avenue, 11th Floor, New York, NY 10172-3401, or by fax on 212 622 8519.

Very truly yours,

J.P. Morgan Securities Inc., as agent for
JPMorgan Chase Bank, National Association

By:/s/ Sudheer Tegulapalle 

Authorized Signatory

Name: Sudheer Tegulapalle

Accepted and confirmed

as of the Trade Date:

GROUP 1 AUTOMOTIVE, INC.

By:/s/ John C. Rickel     

Authorized Signatory

Name: John C. Rickel

2EX-4.7

	 	 	Bank of America, N.A.

	 	 	c/o Banc of America Securities LLC

	9	 	West 57th Street

	 	 	New York, NY 10019

June 20, 2006

	 	 	 	 	 
	To: Group 1 Automotive, Inc.
	950 Echo Lane, Suite 100
Houston, TX 77024
Attention: Kim Craig
	 	 	 	 
	Telephone No.: (713) 647-5742

	Facsimile No.:(713) 647-5858

	Re:
	 	Issuer Warrant Transaction

	 
	 	(Transaction Reference Number:  22956)

The purpose of this letter agreement is to confirm the terms and conditions of the Warrants
issued by Group 1 Automotive, Inc. (“Company”) to Bank of America, N.A. (“BofA”) on the Trade Date
specified below (the “Transaction”). This letter agreement constitutes a “Confirmation” as
referred to in the ISDA Master Agreement specified below. This Confirmation shall replace any
previous letter and serve as the final documentation for this Transaction.

The definitions and provisions contained in the 1996 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and this Confirmation, this Confirmation shall govern. This Transaction shall be
deemed to be a Share Option Transaction within the meaning set forth in the Equity Definitions.

1. This Confirmation evidences a complete and binding agreement between BofA and Company as to the
terms of the Transaction to which this Confirmation relates. This Confirmation shall supplement,
form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the
“Agreement”) as if BofA and Company had executed an agreement in such form (but without any
Schedule except for the election of the laws of the State of New York as the governing law and
United States dollars as the Termination Currency) on the Trade Date. In the event of any
inconsistency between provisions of that Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby
agree that no Transaction other than the Transaction to which this Confirmation relates shall be
governed by the Agreement.

	2.	 	The terms of the particular Transaction to which this Confirmation relates are as follows:

General Terms:

	 	 	 	Trade Date: June 20, 2006

	 	 	 	Warrants: Equity call warrants, each giving the holder the right to purchase one Share at the
Strike Price, subject to the Settlement Terms set forth below. For the purposes of the
Equity Definitions, each reference to a Warrant shall be deemed to be a reference to a
Call Option.

	 	 	 
	Warrant Style:

	 	American
	 
	 	 
	Buyer:

	 	BofA
	 
	 	 
	Seller:

	 	Company

	 	 	 	Shares: The common stock of Company, par value USD 0.01 per Share (Exchange symbol “GPI”)

	 	 	 	Number of Warrants: 2,524,005, subject to adjustments provided herein

	 	 	 	Daily Number of Warrants: For any day, the Number of Warrants not previously exercised
on such day, divided by the remaining number of Expiration Dates (including such day) and
rounded up to the nearest whole number to account for any fractional Daily Number of
Warrants.

	 	 	 	 	 
	Warrant Entitlement:
	 	One Share per Warrant

	Multiple Exercise:
	 	Applicable

	Minimum Number of Warrants:
	 	 	1	 
	Maximum Number of Warrants:
	 	 	2,524,005	 
	Strike Price:
	 	USD 80.3100

	Premium:
	 	USD 41,781,000

	Premium Payment Date:
	 	June 26, 2006

	Exchange:
	 	The New York Stock Exchange

	 	 	 	Related Exchange(s): The principal exchange(s) for options contracts or futures contracts, if
any, with respect to the Shares

Exercise and Valuation:

	 	 	 	Expiration Time: The Valuation Time

	 	 	 	Expiration Date(s): Each Exchange Business Day in the period beginning on and including the
First Expiration Date and ending on and including the 89th Exchange Business
Day following the First Expiration Date shall be an “Expiration Date” for a number of
Warrants equal to the Daily Number of Warrants on such date.

Notwithstanding the foregoing and anything to the
contrary in the Equity Definitions, if a Market
Disruption Event occurs on any Expiration Date
(including the First Expiration Date), the Calculation
Agent shall (i) make adjustments, if applicable, to the
Daily Number of Warrants for which such day shall be an
Expiration Date and (ii) designate the Exchange Business
Day immediately following such day (which may be an
Expiration Date for another Daily Number of Warrants) as
the Expiration Date for the remaining Daily Number of
Warrants or a portion thereof for the original
Expiration Date; provided that any such designation
shall be subject to legal, regulatory or self-regulatory
requirements and related policies and procedures
applicable to BofA (whether or not such requirements,
policies or procedures are imposed by law or have been
voluntarily adopted by BofA); provided further that if
such Expiration Date has not occurred pursuant to clause
(ii) as of the eighth Exchange Business Day following
the last scheduled Expiration Date under this
Transaction, the Calculation Agent shall have the right
to declare such Exchange Business Day to be the final
Expiration Date and the Calculation Agent shall
determine its good faith estimate of the fair market
value for the Shares as of the Valuation Time on that
eighth Exchange Business Day or on any subsequent
Exchange Business Day, as the Calculation Agent shall
determine using commercially reasonable means.

	 	 	 	First Expiration Date: July 15, 2016, subject to Market Disruption Event below.

	 	 	 	Automatic Exercise: Applicable; and means that, unless all Warrants have been previously
exercised hereunder, a number of Warrants for each Expiration Date equal to the Daily
Number of Warrants (as adjusted pursuant to the terms hereof) for such Expiration Date
will be deemed to be automatically exercised.

	 	 	 	Market Disruption Event: Section 4.3(a)(ii) is hereby amended by adding after the words “or
Share Basket Transaction” in the first line thereof a phrase “a failure by the Exchange
or Related Exchange to open for trading during its regular trading session or” and
replacing the phrase “during the one-half hour period that ends at the relevant
Valuation Time” with the phrase “at any time during the regular trading session on the
Exchange or any Related Exchange, without regard to after hours or any other trading
outside of the regular trading session hours”.

Valuation applicable to each Warrant:

	 	 	 	Valuation Time: At the close of trading of the regular trading session on the Exchange;
provided that if the principal trading session is extended, the Calculation Agent shall
determine the Valuation Time in its reasonable discretion.

	 	 	 	Valuation Date: Each Exercise Date. Notwithstanding anything to the contrary in the Equity
Definitions, if there is a Market Disruption Event on any Valuation Date, then the
Calculation Agent shall determine the Settlement Price for such Valuation Date on the
basis of its good faith estimate of the market value for the relevant Shares on such
Valuation Date.

Settlement Terms applicable to the Transaction:

	 	 	Method of Settlement: Net Share Settlement; and means that, on each Settlement Date, Company shall
deliver to BofA, the Share Delivery Quantity of Shares for such Settlement Date to the account
specified hereto free of payment through the Clearance System.

	 	 	Share Delivery Quantity: For any Settlement Date, a number of Shares, as calculated by the
Calculation Agent, equal to the Net Share Settlement Amount for such Settlement Date divided
by the Settlement Price on the Valuation Date in respect of such Settlement Date, plus cash in
lieu of any fractional shares (based on such Settlement Price).

	 	 	Net Share Settlement Amount: For any Settlement Date, an amount equal to the product of (i) the
Number of Warrants being exercised on the relevant Exercise Date (or in the case of any
exercise (including any Automatic Exercise) on an Expiration Date, the Daily Number of
Warrants for such Expiration Date), (ii) the Strike Price Differential for such Settlement
Date and (iii) the Warrant Entitlement. For avoidance of doubt, if any Warrants are exercised
prior to the first Expiration Date, the Calculation Agent will proportionately adjust each
Daily Number of Warrants to reflect such exercise.

	 	 	Strike Price Differential: (a) If the Settlement Price for any Valuation Date is greater than the
Strike Price, an amount equal to the excess of such Settlement Price over the Strike Price; or

(b) If such Settlement Price is less than or equal to
the Strike Price, zero.

	 	 	Settlement Price: For any Valuation Date, the per Share volume-weighted average prices for such
Valuation Date as displayed under the heading “Bloomberg VWAP” on Bloomberg page GPI.N
<equity> AQR (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00
p.m. (New York City time) on such Valuation Date (or if such volume-weighted average price is
unavailable, the market value of one Share on such Valuation Date, as determined by the
Calculation Agent).

	 	 	Settlement Date: For any Exercise Date, the date defined as such in Section 6.2 of the Equity
Definitions, subject to Section 9(o)(i) hereof.

Failure to Deliver: Inapplicable

	 	 	Other Applicable Provisions: The provisions of Sections 6.6, 6.7, 6.8, 6.9 and 6.10 of the Equity
Definitions will be applicable, except that all references in such provisions to
“Physically-Settled” shall be read as references to “Net Share Settled”. “Net Share Settled”
in relation to any Warrant means that Net Share Settlement is applicable to that Warrant.

3. Additional Terms applicable to the Transaction:

Adjustments applicable to the Warrants:

	 	 	 	Method of Adjustment: Calculation Agent Adjustment. For avoidance of doubt, in making any
adjustments under the Equity Definitions, the Calculation Agent may adjust the Strike
Price, the Number of Warrants, the Daily Number of Warrants and the Warrant Entitlement.
Notwithstanding the foregoing, any cash dividends or distributions, whether or not
extraordinary, shall be governed by Section 9(k) of this Confirmation and not by Section
9.1(c) of the Equity Definitions.

Extraordinary Events applicable to the Transaction:

Consequence of Merger Events

	 	(a)	 	Share-for-Share: Alternative Obligation; provided that, if the Calculation Agent
determines in good faith that the Merger Event affects the theoretical value of the
Transaction, the Calculation Agent shall make adjustments to any of the Strike Price, the
Number of Warrants, the Daily Number of Warrants, the Warrant Entitlement and any other
term necessary to reflect the characteristics (including volatility, dividend practice,
borrow cost, policy and liquidity) of the New Shares; provided further that Cancellation
and Payment shall apply if (i) the Calculation Agent determines that no adjustments made
pursuant to the preceding proviso will produce a commercially reasonable result or (ii)
the New Shares are not publicly traded on a United States national securities exchange or
quoted on the NASDAQ National Market.

(b) Share-for-Other: Cancellation and Payment

	 	(c)	 	Share-for-Combined: Cancellation and Payment; provided that on or prior to the
Merger Date, BofA may elect, based on its commercially reasonable judgment, for the
consequence specified opposite “Share for Share” to apply to that portion of the
consideration that consists of New Shares (as determined by the Calculation Agent) and
for the consequence specified opposite “Share-for-Other” to apply to that portion of the
consideration that consists of Other Consideration (as determined by the Calculation
Agent).

Nationalization or Insolvency: Cancellation and Payment

	4.	 	Calculation Agent: BofA

5. Account Details:

(a) Account for payments to Company:

Comerica Bank

ABA#072-000-096

Acct Name: Group 1 Automotive

Acct No.: 1850-796648

Account for delivery of Shares to Company:

Mr. Cory McQuillen

Broker/Dealer Services

Mellon Investor Services, LLC

85 Challenger Rd.

Ridgefield Park, NJ 07660

Group 1 Automotive, Inc.

CUSIP 398905109

Mellon Securities DTC# 0352

	 	(b)	 	Account for payments to BofA:

Bank of America, N.A.

San Francisco, CA

SWIFT: BOFAUS65

Bank Routing: 121-000-358

Account Name: Bank of America

Account No: 12333-34172

Account for delivery of Shares from BofA:

DTC 0773

Acct Name: Bank of America NA

Acct #: 116-00777

6. Offices:

The Office of Company for the Transaction is: Inapplicable, Company is not a Multibranch Party.

The Office of BofA for the Transaction is: Charlotte

Bank of America, N.A.

c/o Banc of America Securities LLC

Equity Financial Products

9 West 57th Street, 40th Floor

New York, NY 10019

Telephone No: 212-583-8373

Facsimile No: 212-847-5124

7. Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Company:

	 	 	 	 	 
	Group 1 Automotive, Inc.
950 Echo Lane, Suite 100
Houston, TX 77024
Attention: Kim Craig
Telephone No.:
	 	 	(713) 647-5742	 
	Facsimile No.:
	 	 	(713) 647-5858	 

(b) Address for notices or communications to BofA:

Bank of America, N.A.

c/o Banc of America Securities LLC

Equity Financial Products

9 West 57th Street, 40th Floor

New York, NY 10019

Telephone No: 212-583-8373

Facsimile No: 212-847-5124

8. Representations and Warranties of Company

The representations and warranties of Company set forth in Section 4 of the Purchase Agreement (the
“Purchase Agreement”) dated as of the Trade Date between Company and J.P. Morgan Securities Inc.
are true and correct and are hereby deemed to be repeated to BofA as if set forth herein. Company
hereby further represents and warrants to BofA that:

	 	(a)	 	Company has all necessary corporate power and authority to execute, deliver and
perform its obligations in respect of this Transaction; such execution, delivery and
performance have been duly authorized by all necessary corporate action on Company’s
part; and this Confirmation has been duly and validly executed and delivered by Company
and constitutes its valid and binding obligation, enforceable against Company in
accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in equity) and
except that rights to indemnification and contribution thereunder may be limited by
federal or state securities laws or public policy relating thereto.

	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Company hereunder will conflict with or result in a
breach of the certificate of incorporation or by-laws (or any equivalent documents) of
Company, or any applicable law or regulation, or any order, writ, injunction or decree
of any court or governmental authority or agency, or any agreement or instrument to
which Company or any of its subsidiaries is a party or by which Company or any of its
subsidiaries is bound or to which Company or any of its subsidiaries is subject (other
than any conflict or breach that is not material), or constitute a default under, or
result in the creation of any lien under, any such agreement or instrument (other than
any default or lien that is not material), or breach or constitute a default under any
agreements and contracts of Company and its significant subsidiaries filed as exhibits
to Company’s Annual Report on Form 10-K for the year ended December 31, 2005 (other
than any breach or default that is not material), as updated by any subsequent filings.

	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required in connection with the execution,
delivery or performance by Company of this Confirmation, except such as have been
obtained or made and such as may be required under the Securities Act of 1933, as
amended (the “Securities Act”) or state securities laws.

	 	(d)	 	The Shares of Company initially issuable upon exercise of the Warrant by the
net share settlement method (the “Warrant Shares”) have been reserved for issuance by
all required corporate action of Company. The Warrant Shares have been duly authorized
and, when delivered against payment therefor (which may include Net Share Settlement in
lieu of cash) and otherwise as contemplated by the terms of the Warrant following the
exercise of the Warrant in accordance with the terms and conditions of the Warrant,
will be validly issued, fully-paid and non-assessable, and the issuance of the Warrant
Shares will not be subject to any preemptive or similar rights.

	 	(e)	 	Company is an “eligible contract participant” (as such term is defined in
Section 1a(12) of the Commodity Exchange Act, as amended (the “CEA”) because one or
more of the following is true:

Company is a corporation, partnership, proprietorship, organization, trust or other
entity and:

	 	(A)	 	Company has total assets in excess of USD 10,000,000;

	 	(B)	 	the obligations of Company hereunder are guaranteed, or
otherwise supported by a letter of credit or keepwell, support or other
agreement, by an entity of the type described in Section 1a(12)(A)(i) through
(iv), 1a(12)(A)(v)(I), 1a(12)(A)(vii) or 1a(12)(C) of the CEA; or

	 	(C)	 	Company has a net worth in excess of USD 1,000,000 and has
entered into this Agreement in connection with the conduct of Company’s
business or to manage the risk associated with an asset or liability owned or
incurred or reasonably likely to be owned or incurred by Company in the conduct
of Company’s business.

	 	(f)	 	Company and each of its affiliates is not, on the date hereof, in possession of
any material non-public information with respect to Company.

9. Other Provisions:

	 	(a)	 	Opinions. Company shall deliver an opinion of counsel in form and
substance reasonably acceptable to BofA, dated as of the Trade Date, to BofA with
respect to the matters set forth in Sections 8(a) through (d) of this Confirmation.

	 	(b)	 	Amendment. If the Initial Purchaser party to the Purchase Agreement
exercises its right to receive additional Convertible Notes pursuant to the Initial
Purchasers’ option to purchase additional Convertible Notes, then, at the discretion of
Company, BofA and Company will either enter into a new confirmation or amend this
Confirmation to provide for such increase in Convertible Notes (but on pricing terms
acceptable to BofA and Company) (such additional confirmation or amendment to this
Confirmation to provide for the payment by Company to BofA of the additional premium
related thereto). “Convertible Notes” mean the 2.25% Convertible Senior Notes due 2036
issued by Company pursuant to an Indenture to be dated June 26, 2006 between Company
and Wells Fargo Bank, N.A., as trustee.

	 	(c)	 	No Reliance, etc. Each party represents that (i) it is entering into
the Transaction evidenced hereby as principal (and not as agent or in any other
capacity); (ii) neither the other party or parties nor any of its or their agents are
acting as a fiduciary for it; (iii) it is not relying upon any representations except
those expressly set forth in the Agreement or this Confirmation; (iv) it has not relied
on the other party or parties for any legal, regulatory, tax, business, investment,
financial, and accounting advice, and it has made its own investment, hedging, and
trading decisions based upon its own judgment and not upon any view expressed by the
other party or parties or any of its or their agents; and (v) it is entering into this
Transaction with a full understanding of the terms, conditions and risks thereof and it
is capable of and willing to assume those risks.

	 	(d)	 	Repurchase Notices. Company shall, on any day on which Company effects
any repurchase of Shares, promptly give BofA a written notice of such repurchase (a
“Repurchase Notice”) on such day if following such repurchase, the number of
outstanding Shares on such day, subject to any adjustments provided herein, is (i) less
than 1,956,240 or (ii) more than 250,000 less than the number of Shares included in the
immediately preceding Repurchase Notice. Company agrees to indemnify and hold harmless
BofA and its affiliates and their respective officers, directors, employees,
affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”)
from and against any and all losses (including losses relating to BofA’s hedging
activities as a consequence of becoming, or of the risk of becoming, a Section 16
“insider”, including without limitation, any forbearance from hedging activities or
cessation of hedging activities and any losses in connection therewith with respect to
this Transaction), claims, damages, judgments, liabilities and expenses (including
reasonable attorney’s fees), joint or several, which an Indemnified Person actually may
become subject to, a result of Company’s failure to provide BofA with a Repurchase
Notice on the day and in the manner specified in this paragraph, and to reimburse,
within 30 days, upon written request, each of such Indemnified Persons for any
reasonable legal or other expenses incurred in connection with investigating, preparing
for, providing testimony or other evidence in connection with or defending any of the
foregoing. If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against the Indemnified
Person, such Indemnified Person shall promptly notify Company in writing, and Company,
upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to
the Indemnified Person to represent the Indemnified Person and any others Company may
designate in such proceeding and shall pay the fees and expenses of such counsel
related to such proceeding. Company shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, Company agrees to indemnify any
Indemnified Person from and against any loss or liability by reason of such settlement
or judgment. Company shall not, without the prior written consent of the Indemnified
Person, effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Person is or could have been a party and indemnity could have
been sought hereunder by such Indemnified Person, unless such settlement includes an
unconditional release of such Indemnified Person from all liability on claims that are
the subject matter of such proceeding on terms reasonably satisfactory to such
Indemnified Person. If the indemnification provided for in this paragraph is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then Company under such paragraph, in lieu
of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid
or payable by such Indemnified Person as a result of such losses, claims, damages or
liabilities. The remedies provided for in this paragraph are not exclusive and shall
not limit any rights or remedies which may otherwise be available to any Indemnified
Person at law or in equity. The indemnity and contribution agreements contained in
this paragraph shall remain operative and in full force and effect regardless of the
termination of this Transaction. 

	 	(e)	 	Regulation M. Company was not on the Trade Date and is not on the date
hereof engaged in a distribution, as such term is used in Regulation M under the
Securities Exchange Act of 1934, as amended (“Exchange Act”), of any securities of
Company, other than a distribution meeting the requirements of the exception set forth
in Rules 101(b)(10) and 102(b)(7) of Regulation M. Company shall not, until the fifth
Exchange Business Day immediately following the Trade Date, engage in any such
distribution.

	 	(f)	 	No Manipulation. Company is not entering into this Transaction to
create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares).

	 	(g)	 	Board Authorization. Company represents that it is entering into the
Transaction, solely for the purposes stated in the board resolution authorizing this
Transaction and in its public disclosure. Company further represents that there is no
internal policy, whether written or oral, of Company that would prohibit Company from
entering into any aspect of this Transaction, including, but not limited to, the
issuance of Shares to hereunder.

	 	(h)	 	Transfer or Assignment. Company may not transfer any of its rights or
obligations under this Transaction without the prior written consent of BofA. BofA may,
without Company’s consent, transfer or assign all or any part of its rights or
obligations under this Transaction to any third party with a rating for its long term,
unsecured and unsubordinated indebtedness of A- or better by Standard & Poor’s Ratings
Service or its successor (“S&P”), or A3 or better by Moody’s Investors Service
(“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least an
equivalent rating or better by a substitute rating agency mutually agreed by Company
and BofA. Notwithstanding any other provision in this Confirmation to the contrary
requiring or allowing BofA to purchase, sell, receive or deliver any shares or other
securities to or from Company, BofA may designate any of its affiliates to purchase,
sell, receive or deliver such shares or other securities and otherwise to perform
BofA’s obligations in respect of this Transaction and any such designee may assume such
obligations. BofA shall be discharged of its obligations to Company to the extent of
any such performance.

	 	(i)	 	Damages. Neither party shall be liable under Section 6.10 of the
Equity Definitions for special, indirect or consequential damages, even if informed of
the possibility thereof, except as specifically set forth otherwise herein.

	 	(j)	 	Early Unwind. In the event the sale of Convertible Notes is not
consummated with the initial purchasers for any reason by the close of business in New
York on June 26, 2006 (or such later date as agreed upon by the parties) (June 26, 2006
or such later date as agreed upon being the “Early Unwind Date”), this Transaction
shall automatically terminate (the “Early Unwind”), on the Early Unwind Date and (i)
the Transaction and all of the respective rights and obligations of BofA and Company
under the Transaction shall be cancelled and terminated and (ii) each party shall be
released and discharged by the other party from and agrees not to make any claim
against the other party with respect to any obligations or liabilities of the other
party arising out of and to be performed in connection with the Transaction either
prior to or after the Early Unwind Date; provided that, if the sale of the Convertible
Notes is not consummated with the initial purchasers by the close of business in New
York on the Early Unwind Date as a result of a failure by Company to satisfy any
condition to closing contained in Section 6 of the Purchase Agreement, Company shall
purchase from BofA on the Early Unwind Date all Shares purchased by BofA or one or more
of its affiliates and reimburse BofA for any costs or expenses (including market
losses) relating to the unwinding of its hedging activities in connection with the
Transaction (including any loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position). The
amount of any such reimbursement shall be determined by BofA in its sole good faith
discretion. BofA shall notify Company of such amount and Company shall pay such amount
in immediately available funds on the Early Unwind Date. BofA and Company represent
and acknowledge to the other that, subject to the proviso included in this paragraph,
upon an Early Unwind, all obligations with respect to the Transaction shall be deemed
fully and finally discharged.

	 	(k)	 	Dividends. If at any time during the period from and including the
Trade Date, to but excluding the Expiration Date, an ex-dividend date for a cash
dividend occurs with respect to the Shares (an “Ex-Dividend Date”), and that dividend
is greater than the Regular Dividend on a per Share basis then the Calculation Agent
will adjust the Strike Price, the Number of Warrants, the Daily Number of Warrants and
the Warrant Entitlement to preserve the fair value of the Warrant to BofA after taking
into account such dividend. “Regular Dividend” shall mean USD 0.1400 per Share per
quarter.

	 	(l)	 	Additional Provisions.

(i) Notwithstanding Section 9.7 of the Equity Definitions, everything in the first
paragraph of Section 9.7(b) of the Equity Definitions after the words “Calculation
Agent” in the third line through the remainder of such Section 9.7 shall be deleted
and replaced with the following:

“based on an amount representing the Calculation Agent’s determination of the fair
value to Buyer of an option with terms that would preserve for Buyer the economic
equivalent of any payment or delivery (assuming satisfaction of each applicable
condition precedent) by the parties in respect of the relevant Transaction that
would have been required after that date but for the occurrence of the Merger Event,
Nationalization, as the case may be.”

(ii) Notwithstanding anything to the contrary in this Confirmation, upon the
occurrence of one of the following events, with respect to this Transaction, (1)
BofA shall have the right to designate such event an Additional Termination Event
and designate and Early Termination Date pursuant to Section 6(b) of the Agreement,
and (2) Company shall be deemed the sole Affected Party and the Transaction shall be
deemed the sole Affected Transaction:

(A) Company sells of all or substantially all of its assets in a transaction
pursuant to which the Shares are converted into cash, securities or other
property.

(B) There is a default by Company or any subsidiary in the payment of the
principal or interest on any mortgage, agreement or other instrument under which
there may be outstanding, or by which there may be secured or evidenced any
indebtedness for money borrowed in excess of $25 million in the aggregate of
Company and/or any subsidiary, whether such indebtedness now exists or shall
hereafter be created resulting in such indebtedness becoming or being declared
due and payable, and such acceleration shall not have been rescinded or annulled
within 10 days after written notice of such acceleration has been received by
Company or such subsidiary.

(C) At any time during the period from and including the Trade Date, to and
including the Expiration Date, the Shares cease to be listed or quoted on the
Exchange (a “Share De-listing”) for any reason (other than a Merger Event as a
result of which the shares of common stock underlying the Warrants are listed or
quoted on The New York Stock Exchange, The American Stock Exchange or the NASDAQ
National Market (or their respective successors) (the “Successor Exchange”)) and
are not immediately re-listed or quoted as of the date of such de-listing on the
Successor Exchange.

	 	(m)	 	No Collateral or Setoff. Notwithstanding any provision of the
Agreement or any other agreement between the parties to the contrary, the obligations
of Company hereunder are not secured by any collateral. Obligations under this
Transaction shall not be set off by Company against any other obligations of the
parties, whether arising under the Agreement, this Confirmation, under any other
agreement between the parties hereto, by operation of law or otherwise. Any provision
in the Agreement with respect to the satisfaction of Company’s payment obligations to
the extent of BofA’s payment obligations to Company in the same currency and in the
same Transaction (including, without limitation Section 2(c) thereof) shall not apply
to Company and, for the avoidance of doubt, Company shall fully satisfy such payment
obligations notwithstanding any payment obligation to Company by BofA in the same
currency and in the same Transaction. In calculating any amounts under Section 6(e) of
the Agreement, notwithstanding anything to the contrary in the Agreement, (1) separate
amounts shall be calculated as set forth in such Section 6(e) with respect to (a) this
Transaction and (b) all other Transactions, and (2) such separate amounts shall be
payable pursuant to Section 6(d)(ii) of the Agreement.

	 	(n)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If, in respect of this Transaction, an amount is payable by
Company to BofA, (i) pursuant to Section 9.7 of the Equity Definitions (except in the
event of a Nationalization or Insolvency or a Merger Event, in each case, in which the
consideration to be paid to holders of Shares consists solely of cash) or (ii) pursuant
to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in
which Company is the Defaulting Party or a Termination Event in which Company is the
Affected Party, other than an Event of Default of the type described in Section
5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the
type described in Section 5(b)(i), (ii), (iii), (iv), (v) or (vi) of the Agreement in
each case that resulted from an event or events outside Company’s control) (a “Payment
Obligation”), Company may, in its sole discretion, satisfy any such Payment Obligation
by the Share Termination Alternative (as defined below) and shall give irrevocable
telephonic notice to BofA, confirmed in writing within one Currency Business Day, no
later than 12:00 p.m. New York local time on the Merger Date, the date of the
occurrence of the Nationalization or Insolvency, or Early Termination Date, as
applicable; provided that if Company does not validly elect to satisfy its Payment
Obligation by the Share Termination Alternative, BofA shall have the right to require
Company to satisfy its Payment Obligation by the Share Termination Alternative,
notwithstanding Company’s election to satisfy its Payment Obligation by cash.
Notwithstanding the foregoing, Company’s or BofA’s right to elect satisfaction of
a Payment Obligation in the Share Termination Alternative as set forth in this clause
shall only apply to Transactions under this Confirmation and, notwithstanding anything
to the contrary in the Agreement, (1) separate amounts shall be calculated with respect
to (a) Transactions hereunder and (b) all other Transactions under the Agreement, and
(2) such separate amounts shall be payable pursuant to Section 6(d)(ii) of the
Agreement, subject to, in the case of clause (a), Company’s Share Termination
Alternative right hereunder.

	 	 	 	Share Termination Alternative: Applicable and means that Company
shall deliver to BofA the Share Termination Delivery Property on the date (the
“Share Termination Payment Date”) when the Payment Obligation would otherwise
be due, subject to paragraph (o)(i) below, in satisfaction, subject to
paragraph (o)(ii) below, of the Payment Obligation in the manner reasonably
requested by BofA free of payment.

	 	 	 	Share Termination Delivery Property: A number of Share Termination
Delivery Units, as calculated by the Calculation Agent, equal to the Payment
Obligation divided by the Share Termination Unit Price. The Calculation Agent
shall adjust the Share Termination Delivery Property by replacing any
fractional portion of a security therein with an amount of cash equal to the
value of such fractional security based on the values used to calculate the
Share Termination Unit Price.

	 	 	 	Share Termination Unit Price: The market value of property contained
in one Share Termination Delivery Unit on the date such Share Termination
Delivery Units are to be delivered as Share Termination Delivery Property, as
determined by the Calculation Agent in its discretion by commercially
reasonable means and notified by the Calculation Agent to Company at the time
of notification of the Payment Obligation. In the case of a Private Placement
of Share Termination Delivery Units that are Restricted Shares (as defined
below) as set forth in paragraph (o)(i) below, the Share Termination Unit Price
shall be determined by the discounted Settlement Price applicable to such Share
Termination Delivery Units. In the case of a Registered Settlement of Share
Termination Delivery Units that are Restricted Shares (as defined below) as set
forth in paragraph (o)(ii) below, the Share Termination Unit Price shall be the
Settlement Price, as discounted, on the Merger Date, the date of the occurrence
of the Nationalization or Insolvency, or Early Termination Date, as applicable.

	 	 	 	Share Termination Delivery Unit: In the case of a Termination Event
or Event of Default, one Share or, in the case of Nationalization or Insolvency
or a Merger Event, a unit consisting of the number or amount of each type of
property received by a holder of one Share (without consideration of any
requirement to pay cash or other consideration in lieu of fractional amounts of
any securities) in such Nationalization or Insolvency or such Merger Event. If
such Merger Event involves a choice of consideration to be received by holders,
such holder shall be deemed to have elected to receive the maximum possible
amount of cash.

	 	 	 	Failure to Deliver: Inapplicable

	 	 	 	Other applicable provisions: If this Transaction is to be Share
Termination Settled, the provisions of Sections 6.6, 6.7, 6.8, 6.9 and 6.10 (as
modified above) of the Equity Definitions will be applicable, except that all
references in such provisions to “Physically-Settled” shall be read as
references to “Share Termination Settled” and all references to “Shares” shall
be read as references to “Share Termination Delivery Units”. “Share
Termination Settled” in relation to this Transaction means that Share
Termination Settlement is applicable to this Transaction.

	 	(o)	 	Registration/Private Placement Procedures. If based on the advice of
its counsel, BofA determines that, following any delivery of Shares or Share
Termination Delivery Property to BofA hereunder, such Shares or Share Termination
Delivery Property would be in the hands of BofA subject to any applicable restrictions
with respect to any registration or qualification requirement or prospectus delivery
requirement for such Shares or Share Termination Delivery Property pursuant to any
applicable federal or state securities law (including, without limitation, any such
requirement arising under Section 5 of the Securities Act as a result of such Shares or
Share Termination Delivery Property being “restricted securities”, as such term is
defined in Rule 144 under the Securities Act, or as a result of the sale of such Shares
or Share Termination Delivery Property being subject to paragraph (c) of Rule 145 under
the Securities Act) (such Shares or Share Termination Delivery Property, “Restricted
Shares”), then delivery of such Restricted Shares shall be effected pursuant to either
clause (i) or (ii) below at the election of Company, unless waived by BofA.
Notwithstanding the foregoing, solely in respect of any Daily Number of Warrants
exercised or deemed exercised on any Expiration Date, Company shall elect, prior to the
first Settlement Date for the first Expiration Date, a Private Placement Settlement or
Registered Settlement for all deliveries of Restricted Shares for all such Expiration
Dates which election shall be applicable to all Settlement Dates for such Daily Number
of Warrants and the procedures in clause (i) or clause (ii) below shall apply for all
such delivered Restricted Shares on an aggregate basis commencing after the final
Settlement Date for such Daily Number of Warrants. The Calculation Agent shall make
reasonable adjustments to settlement terms and provisions under this Confirmation to
reflect a single Private Placement or Registered Settlement for such aggregate
Restricted Shares delivered hereunder.

	 	(i)	 	If Company elects to settle the Transaction pursuant to this
clause (i) (a “Private Placement Settlement”), then delivery of Restricted
Shares by Company shall be effected in customary private placement procedures
with respect to such Restricted Shares reasonably acceptable to BofA; provided
that Company may not elect a Private Placement Settlement if, on the date of
its election, it has taken, or caused to be taken, any action that would make
unavailable either the exemption pursuant to Section 4(2) of the Securities Act
for the sale by Company to BofA (or any affiliate designated by BofA) of the
Restricted Shares or the exemption pursuant to Section 4(1) or Section 4(3) of
the Securities Act for resales of the Restricted Shares by BofA (or any such
affiliate of BofA). The Private Placement Settlement of such Restricted Shares
shall include customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to BofA, due diligence
rights (for BofA or any designated buyer of the Restricted Shares by BofA),
opinions and certificates, and such other documentation as is customary for
private placement agreements, all reasonably acceptable to BofA. In the case
of a Private Placement Settlement, BofA shall determine the appropriate
discount to the Share Termination Unit Price (in the case of settlement of
Share Termination Delivery Units pursuant to paragraph (n) above) or any
Settlement Price (in the case of settlement of Shares pursuant to Section 2
above) applicable to such Restricted Shares in a commercially reasonable manner
and appropriately adjust the number of such Restricted Shares to be delivered
to BofA hereunder; provided that in no event shall such discount take into
account any period of time after the Settlement Date, or the date on which the
Payment Obligation is due; provided further that in no event such number shall
be greater than 5,048,010 (the “Maximum Amount”). Notwithstanding the
Agreement or this Confirmation, the date of delivery of such Restricted Shares
shall be the Exchange Business Day following notice by BofA to Company, of such
applicable discount and the number of Restricted Shares to be delivered
pursuant to this clause (i). For the avoidance of doubt, delivery of
Restricted Shares shall be due as set forth in the previous sentence and not be
due on the Share Termination Payment Date (in the case of settlement of Share
Termination Delivery Units pursuant to paragraph (n) above) or on the
Settlement Date for such Restricted Shares (in the case of settlement of Shares
pursuant to Section 2 above), except to the extent the number of Restricted
Shares to be delivered would require the approval of Company’s shareholders (as
required by Rule 312.03 of the New York Stock Exchange Rules (“Rule 312.03”),
in which event Company shall deliver that amount of Restricted Shares not
requiring such approval.

To the extent Company’s issuance of Restricted Shares following an election
of Private Placement Settlement requires the approval of Company’s
shareholders (as required by Rule 312.03 of the New York Stock Exchange
Rules (“Rule 312.03”)), Company shall use its reasonable best efforts to
obtain either (A) such required shareholder approval or (B) a waiver from
the New York Stock Exchange, waiving the application of Rule 312.03 to
Company’s issuance of Restricted Shares.

In the event Company shall not have delivered the full number of Restricted
Shares otherwise applicable as a result of the proviso above relating to the
Maximum Amount and/or the application of Rule 312.03 (such deficit, the
“Deficit Restricted Shares”), Company shall be continually obligated to
deliver, from time to time until the full number of Deficit Restricted
Shares have been delivered pursuant to this paragraph, Restricted Shares
when, and to the extent, that (i) Shares are repurchased, acquired or
otherwise received by Company or any of its subsidiaries after the Trade
Date (whether or not in exchange for cash, fair value or any other
consideration), (ii) authorized and unissued Shares reserved for issuance in
respect of other transactions prior to such date which prior to such
Settlement Date become no longer so reserved, (iii) Company additionally
authorizes and unissued Shares that are not reserved for other transactions,
or (iv) the shareholders of the Company have approved such issuance or the
Company has obtained a waiver of the application of Rule 312.03 from the New
York Stock Exchange. Company shall immediately notify BofA of the
occurrence of any of the foregoing events (including the number of Shares
subject to clause (i), (ii), (iii) and (iv) and the corresponding number of
Restricted Shares to be delivered) and promptly deliver such Restricted
Shares thereafter.

In the event of a Private Placement, the Net Share Settlement Amount or the
Payment Obligation, respectively, shall be deemed to be the Net Share
Settlement Amount or the Payment Obligation, respectively, plus an
additional amount (determined from time to time by the Calculation Agent in
its commercially reasonable judgment) attributable to interest that would be
earned on such Net Share Settlement Amount or the Payment Obligation,
respectively, (increased on a daily basis to reflect the accrual of such
interest and reduced from time to time by the amount of net proceeds
received by BofA as provided herein) at a rate equal to the open Federal
Funds Rate plus the Spread for the period from, and including, such
Settlement Date or the date on which the Payment Obligation is due,
respectively, to, but excluding, the related date on which all the
Restricted Shares have been sold and calculated on an Actual/360 basis. The
foregoing provision shall be without prejudice to BofA’s rights under the
Agreement (including, without limitation, Sections 5 and 6 thereof).

As used in this clause (i), “Spread” means, with respect to any Net
Share Settlement Amount or Payment Obligation, respectively, the credit
spread over the applicable overnight rate that would be imposed if BofA were
to extend credit to Company in an amount equal to such Net Share Settlement
Amount, all as determined by the Calculation Agent using its commercially
reasonable judgment as of the related Settlement Date or the date on which
the Payment Obligation is due, respectively. Commercial reasonableness
shall take into consideration all factors deemed relevant by the Calculation
Agent, which are expected to include, among other things, the credit quality
of Company (and any relevant affiliates) in the then-prevailing market and
the credit spread of similar companies in the relevant industry and other
companies having a substantially similar credit quality.

	 	(ii)	 	If Company elects to settle the Transaction pursuant to this
clause (ii) (a “Registration Settlement”), then Company shall promptly (but in
any event no later than the beginning of the Resale Period) file and use its
reasonable best efforts to make effective under the Securities Act a
registration statement or supplement or amend an outstanding registration
statement in form and substance reasonably satisfactory to BofA, to cover the
resale of such Restricted Shares in accordance with customary resale
registration procedures, including covenants, conditions, representations,
underwriting discounts (if applicable), commissions (if applicable),
indemnities, due diligence rights, opinions and certificates, and such other
documentation as is customary for equity resale underwriting agreements, all
reasonably acceptable to BofA. If BofA, in its sole reasonable discretion, is
not satisfied with such procedures and documentation Private Placement
Settlement shall apply. If BofA is satisfied with such procedures and
documentation, it shall sell the Restricted Shares pursuant to such
registration statement during a period (the “Resale Period”) commencing on the
Exchange Business Day following delivery of such Restricted Shares (which, for
the avoidance of doubt, shall be (x) any Settlement Date in the case of an
exercise of Warrants prior to the first Expiration Date pursuant to Section 2
above, (y) the Share Termination Payment Date in case of settlement of Share
Termination Delivery Units pursuant to paragraph (n) above or (z) the
Settlement Date in respect of the final Expiration Date for all Daily Number of
Warrants) and ending on the earliest of (i) the Exchange Business Day on which
BofA completes the sale of all Restricted Shares or, in the case of settlement
of Share Termination Delivery Units, a sufficient number of Restricted Shares
so that the realized net proceeds of such sales exceed the Payment Obligation
(as defined above), (ii) the date upon which all Restricted Shares have been
sold or transferred pursuant to Rule 144 (or similar provisions then in force)
or Rule 145(d)(1) or (2) (or any similar provision then in force) under the
Securities Act and (iii) the date upon which all Restricted Shares may be sold
or transferred by a non-affiliate pursuant to Rule 144(k) (or any similar
provision then in force) or Rule 145(d)(3) (or any similar provision then in
force) under the Securities Act. If the Payment Obligation exceeds the
realized net proceeds from such resale, Company shall transfer to BofA by the
open of the regular trading session on the Exchange on the Exchange Business
Day immediately following the last day of the Resale Period the amount of such
excess (the “Additional Amount”) in cash or in a number of Shares (“Make-whole
Shares”) in an amount that, based on the Settlement Price on the last day of
the Resale Period (as if such day was the “Valuation Date” for purposes of
computing such Settlement Price), has a dollar value equal to the Additional
Amount. The Resale Period shall continue to enable the sale of the Make-whole
Shares. If Company elects to pay the Additional Amount in Shares, the
requirements and provisions for Registration Settlement shall apply. This
provision shall be applied successively until the Additional Amount is equal to
zero. In no event shall Company deliver a number of Restricted Shares greater
than the Maximum Amount.

	 	(iii)	 	Without limiting the generality of the foregoing and subject
to any change or amendment that affects the effectiveness of Rule 144 under the
Securities Act, Company agrees that any Restricted Shares delivered to BofA, as
purchaser of such Restricted Shares, (i) may be transferred by and among BofA
and its affiliates and Company shall effect such transfer without any further
action by BofA and (ii) after the minimum “holding period” within the meaning
of Rule 144(d) under the Securities Act has elapsed after any Settlement Date
for such Restricted Shares, Company shall promptly remove, or cause the
transfer agent for such Restricted Shares to remove, any legends referring to
any such restrictions or requirements from such Restricted Shares upon delivery
by BofA (or such affiliate of BofA) to Company or such transfer agent of
seller’s and broker’s representation letters customarily delivered by BofA in
connection with resales of restricted securities pursuant to Rule 144 under the
Securities Act, without any further requirement for the delivery of any
certificate, consent, agreement, opinion of counsel, notice or any other
document, any transfer tax stamps or payment of any other amount or any other
action by BofA (or such affiliate of BofA).

If the Private Placement Settlement or the Registration Settlement shall not be
effected as set forth in clauses (i) or (ii), as applicable, then failure to effect
such Private Placement Settlement or such Registration Settlement shall constitute
an Event of Default with respect to which Company shall be the Defaulting Party.

	 	(p)	 	Limit on Beneficial Ownership. Notwithstanding any other provisions
hereof, BofA may not exercise any Warrant hereunder, and Automatic Exercise shall not
apply with respect thereto, to the extent (but only to the extent) that, after such
receipt, BofA would directly or indirectly beneficially own (as such term is defined
for purposes of Section 13(d) of the Exchange Act) in excess of 8.0% of the outstanding
Shares. Any purported delivery hereunder shall be void and have no effect to the
extent (but only to the extent) that, after such delivery, BofA would directly or
indirectly so beneficially own in excess of 8.0% of the outstanding Shares. If any
delivery owed to BofA hereunder is not made, in whole or in part, as a result of this
provision, Company’s obligation to make such delivery shall not be extinguished and
Company shall make such delivery as promptly as practicable after, but in no event
later than one Business Day after, BofA gives notice to Company that, after such
delivery, BofA would not directly or indirectly so beneficially own in excess of 8.0%
of the outstanding Shares.

	 	(q)	 	Share Deliveries. Subject to Rule 144 of the Securities Act remaining
in effect, Company acknowledges and agrees that, to the extent the holder of this
Warrant is not then an affiliate and has not been an affiliate for 90 days (it being
understood that BofA will not be considered an affiliate under this paragraph solely by
reason of its receipt of Shares pursuant to this Transaction), and otherwise satisfies
all holding period and other requirements of Rule 144 of the Securities Act applicable
to it, any delivery of Shares or Share Termination Property hereunder at any time after
2 years from the Trade Date shall be eligible for resale under Rule 144(k) of the
Securities Act and Company agrees to promptly remove, or cause the transfer agent for
such Shares or Share Termination Property, to remove, any legends referring to any
restrictions on resale under the Securities Act from the Shares or Share Termination
Property. Company further agrees, for any delivery of Shares or Share Termination
Property hereunder at any time after 1 year from the Trade Date but within 2 years of
the Trade Date, to the to the extent the holder of this Warrant then satisfies the
holding period and other requirements of Rule 144 of the Securities Act, to promptly
remove, or cause the transfer agent for such Restricted Share to remove, any legends
referring to any such restrictions or requirements from such Restricted Shares. Such
Restricted Shares will be de-legended upon delivery by BofA (or such affiliate of BofA)
to Company or such transfer agent of customary seller’s and broker’s representation
letters in connection with resales of restricted securities pursuant to Rule 144 of the
Securities Act, without any further requirement for the delivery of any certificate,
consent, agreement, opinion of counsel, notice or any other document, any transfer tax
stamps or payment of any other amount or any other action by BofA (or such affiliate of
BofA). Company further agrees that any delivery of Shares or Share Termination
Delivery Property prior to the date that is 1 year from the Trade Date, may be
transferred by and among BofA and its affiliates and Company shall effect such transfer
without any further action by BofA. Notwithstanding anything to the contrary herein,
Company agrees that any delivery of Shares or Share Termination Delivery Property shall
be effected by book-entry transfer through the facilities of DTC, or any successor
depositary, if at the time of delivery, such class of Shares or class of Share
Termination Delivery Property is in book-entry form at DTC or such successor
depositary. Notwithstanding anything to the contrary herein, to the extent the
provisions of Rule 144 of the Securities Act or any successor rule are amended, or the
applicable interpretation thereof by the Securities and Exchange Commission or any
court change after the Trade Date, the agreements of Company herein shall be deemed
modified to the extent necessary, in the opinion of outside counsel of Company, to
comply with Rule 144 of the Securities Act, including Rule 144(k) as in effect at the
time of delivery of the relevant Shares or Share Termination Property.

	 	(r)	 	Hedging Disruption Event. The occurrence of a Hedging Disruption Event
will constitute an Additional Termination Event under the Agreement permitting BofA to
terminate the Transaction, with Company as the sole Affected Party and the Transaction
as the sole Affected Transaction. “Hedging Disruption Event” shall have occurred if
(1) BofA, despite using commercially reasonable efforts, is unable or reasonably
determines that it is impractical or illegal, to (A) borrow Shares to hedge its
exposure with respect to the Transaction at a stock loan rebate rate equal to or in
excess of zero, or the prevailing stock loan rebate rate for the Shares, as determined
by the Calculation Agent, is less than zero; or (B) hedge its obligations pursuant to
this Transaction in the public market without registration under the Securities Act or
as a result of any legal, regulatory or self-regulatory requirements or related
policies and procedures (whether or not such requirements, policies or procedures are
imposed by law or have been voluntarily adopted by BofA).

	 	(s)	 	Governing Law. New York law (without reference to choice of law
doctrine).

	 	(t)	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to this Transaction. Each party (i) certifies that
no representative, agent or attorney of the other party has represented, expressly or
otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into this Transaction, as applicable, by, among
other things, the mutual waivers and certifications provided herein.

	 	(u)	 	Tax Disclosure. Effective from the date of commencement of discussions
concerning the Transaction, Company and each of its employees, representatives, or
other agents may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the Transaction and all materials of any kind
(including opinions or other tax analyses) that are provided to Company relating to
such tax treatment and tax structure.

	 	(v)	 	Maximum Share Delivery. Notwithstanding any other provision of this
Confirmation or the Agreement, in no event will Company be required to deliver more
than the Maximum Amount of Shares in the aggregate to BofA in connection with this
Transaction, subject to the provisions regarding Deficit Restricted Shares.

	 	(w)	 	Status of Claims in Bankruptcy. BofA acknowledges and agrees that this
Confirmation is not intended to convey to BofA rights with respect to the Transaction
that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings
of Company; provided that nothing herein shall limit or shall be deemed to limit BofA’s
right to pursue remedies in the event of a breach by Company of its obligations and
agreements with respect to the Transaction; provided, further, that nothing herein
shall limit or shall be deemed to limit BofA’s rights in respect of any transactions
other than the Transaction.

	 	(x)	 	Securities Contract; Swap Agreement. The parties hereto agree and
acknowledge that BofA is a “financial institution,” “swap participant” and “financial
participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of Title 11
of the United States Code (the “Bankruptcy Code”). The parties hereto further agree
and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term
is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment
and delivery hereunder is a “settlement payment,” as such term is defined in Section
741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in
Section 101(53B) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder is a “transfer,” as such term is defined in Section 101(54) of the
Bankruptcy Code, and (B) that BofA is entitled to the protections afforded by, among
other sections, Section 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the
Bankruptcy Code.

1

Company hereby agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by BofA) correctly sets forth the terms of the
agreement between BofA and Company with respect to the Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to Chris Hutmaker,
Facsimile No. 212-326-9882.

Yours faithfully,

Bank of America, N.A.

By: /s/ Eric P. Hembleton

Authorized Signatory: Eric P. Hembleton

Title: Authorized Signatory

Agreed and Accepted

as of the Trade Date:

Group 1 Automotive, Inc.

By:/s/ John C. Rickel     

Authorized Signatory

Name: John C. Rickel

2

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