Document:

exv10w6

 

Exhibit
10.6

AMENDMENT NO. 3 TO CREDIT AGREEMENT

     This
Amendment No. 3 to Credit Agreement (this “Agreement”) dated as of January 16, 2008 is
made by and among GROUP 1 REALTY, INC., a Delaware corporation (the “Borrower”), GROUP 1
AUTOMOTIVE, INC., a Delaware corporation (the “Company”), BANK OF AMERICA, N.A., a national banking
association organized and existing under the laws of the United States (“Bank of America”), in its
capacity as administrative agent for the Lenders (as defined in the Credit Agreement (as defined
below)) (in such capacity, the “Administrative Agent”), each of the Lenders signatory hereto, and
each of the other Guarantors (as defined in the Credit Agreement) signatory hereto.

WITNESSETH:

     WHEREAS, the Borrower, the Company, the Administrative Agent and the lenders party thereto
(the “Lenders”), have entered into that certain Credit Agreement dated as of March 29, 2007, as
amended by the Amendment No. 1 to Credit Agreement and Joinder Agreement dated April 27, 2007 and
Amendment No. 2 to Credit Agreement and Joinder Agreement dated as of December 20, 2007 (as so
amended, as hereby amended, and as from time to time hereafter further amended, modified,
supplemented, restated, or amended and restated, the “Credit Agreement”; capitalized terms used in
this Agreement not otherwise defined herein shall have the respective meanings given thereto in the
Credit Agreement), pursuant to which the Lenders have made available to the Borrower a credit
facility; and

     WHEREAS, the Company has entered into the Company Guaranty Agreement pursuant to which it has
guaranteed the payment and performance of the obligations of the Borrower under the Credit
Agreement, the other Loan Documents and the Related Swap Contracts; and

     WHEREAS, each of the other Guarantors has entered into the Subsidiary Guaranty Agreement
pursuant to which it has guaranteed the payment and performance of the obligations of the Borrower
under the Credit Agreement, the other Loan Documents and the Related Swap Contracts; and

     WHEREAS, the Borrower and certain of the Guarantors have entered into, or may in the future
enter into, Security Instruments granting Liens on property as security for all or any portion of
the Obligations, any other obligation under any Loan Document and any obligation or liability
arising under any Related Swap Contract; and

     WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that it desires to
amend the Credit Agreement as set forth below, and the Administrative Agent and the Lenders
signatory hereto are willing to effect such amendment on the terms and conditions contained in this
Agreement.

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

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     1. Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended as follows:

	 	(a)	 	The definition of “Account” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety as follows:

‘‘‘Account” means any “account” as such term is defined in the UCC, now or
hereafter owned by the Company, the Borrower or any of their respective
Subsidiaries, including rights to payment for goods and services sold or
leased, whether now existing or hereafter arising in the future.’

	 	(b)	 	Section 7.13 of the Credit Agreement is hereby amended and restated in
its entirety as follows:

“Section 7.13 Senior Secured Leverage Ratio. The Company
shall not, at any time, permit its Senior Secured Leverage Ratio to
be greater than 2.75 to 1.0.”

     2. Effectiveness; Conditions Precedent. The effectiveness of this Agreement and the
amendments to the Credit Agreement herein provided are subject to the satisfaction of the following
conditions precedent:

     (a) The Administrative Agent shall have received each of the following documents or
instruments in form and substance reasonably acceptable to the Administrative Agent:

     (i) an original counterpart of this Agreement, duly executed by the Borrower,
the Company, the Administrative Agent, each other Guarantor and the Required
Lenders; and

     (ii) (i) a certificate of each Loan Party dated as of the date hereof signed by
a Responsible Officer, secretary or assistant secretary of such Loan Party
certifying and attaching the resolutions adopted by such Loan Party approving or
consenting to the terms of this Agreement, and (ii) a certificate of the Borrower,
signed by a Responsible Officer, certifying that, before and after giving effect to
the amendments being made pursuant to this Agreement, (A) the representations and
warranties contained in Article V of the Credit Agreement and the other Loan
Documents are true and correct on and as of the Amendment Effective Date, except to
the extent that such representations and warranties specifically refer to an earlier
date, in which case they are true and correct as of such earlier date, and (B) no
Default exists;

     (iii) The Administrative Agent shall have received an amendment modifying the
Senior Secured Leverage Ratio and Total Leverage Ratio covenants in that certain
Seventh Amended and Restated Revolving Credit Agreement dated effective March 19,
2007 among the Company, each of the Subsidiaries of the Company party thereto, the
lenders party thereto and JPMorgan Chase Bank,

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N.A., as administrative agent, Comerica Bank, as Floor Plan Agent and Bank of
America, N.A., as syndication agent; and

     (iv) such other documents, instruments, opinions, certifications, undertakings,
further assurances and other matters as the Administrative Agent shall reasonably
request.

     (b) All fees and expenses payable to the Administrative Agent and the Lenders
(including the fees and expenses of counsel to the Administrative Agent) estimated to date
shall have been paid in full (without prejudice to final settling of accounts for such fees
and expenses).

     3. Consent of the Guarantors. Each Guarantor hereby consents, acknowledges and agrees
to the amendments and other agreements set forth herein and hereby confirms and ratifies in all
respects the Company Guaranty Agreement or Subsidiary Guaranty Agreement to which such Guarantor is
a party (including without limitation the continuation of such Guarantor’s payment and performance
obligations thereunder upon and after the effectiveness of this Agreement and the amendments
contemplated hereby) and the enforceability of such Company Guaranty Agreement or Subsidiary
Guaranty Agreement against such Guarantor in accordance with its terms.

     4. Representations and Warranties. In order to induce the Administrative Agent and
the Lenders to enter into this Agreement, the Borrower represents and warrants to the
Administrative Agent and the Lenders as follows:

     (a) The representations and warranties made by each Loan Party in Article V
 of the Credit Agreement and in each of the other Loan Documents to which such Loan
Party is a party are true and correct on and as of the date hereof, except to the extent
that such representations and warranties expressly relate to an earlier date;

     (b) Since the date of the most recent financial reports of the Borrower delivered
pursuant to Section 6.05 of the Credit Agreement, no act, event, condition or
circumstance has occurred or arisen which, singly or in the aggregate with one or more other
acts, events, occurrences or conditions (whenever occurring or arising), has had or could
reasonably be expected to have a Material Adverse Effect;

     (c) The Company and all other Persons appearing as Guarantors on the signature pages to
this Agreement constitute all Persons who are required to be Guarantors pursuant to the
terms of the Credit Agreement and the other Loan Documents, including without limitation all
Persons who became Subsidiaries or were otherwise required to become Guarantors after the
Closing Date, and each of such Persons has become and remains a party to the Company
Guaranty Agreement or a Subsidiary Guaranty Agreement as a Guarantor;

     (d) This Agreement has been duly authorized, executed and delivered by the Borrower,
the Company and the other Guarantors party hereto and constitutes a legal, valid and binding
obligation of such parties, except as may be limited by general

3

 

principles of equity or by the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally; and

     (e) No Default or Event of Default has occurred and is continuing.

     5. Entire Agreement. This Agreement, together with all the Loan Documents
(collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the
parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and
agreements among the parties relating to such subject matter. No promise, condition,
representation or warranty, express or implied, not set forth in the Relevant Documents shall bind
any party hereto, and no such party has relied on any such promise, condition, representation or
warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in
the Relevant Documents, no representations, warranties or commitments, express or implied, have
been made by any party to the other in relation to the subject matter hereof or thereof. None of
the terms or conditions of this Agreement may be changed, modified, waived or canceled orally or
otherwise, except in writing and in accordance with Section 10.01 of the Credit Agreement.

     6. Full Force and Effect of Agreement. Except as previously or hereby specifically
amended, modified or supplemented, the Credit Agreement and all other Loan Documents are hereby
confirmed and ratified in all respects and shall be and remain in full force and effect according
to their respective terms.

     7. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all
of which shall together constitute one and the same instrument.

     8. Governing Law. This Agreement shall in all respects be governed by, and construed
in accordance with, the laws of the State of Texas applicable to contracts executed and to be
performed entirely within such State, and shall be further subject to the provisions of Section
10.14 of the Credit Agreement.

     9. Enforceability. Should any one or more of the provisions of this Agreement be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

     10. References. All references in any of the Loan Documents to the “Credit Agreement”
shall mean the Credit Agreement, as amended hereby and as from time to time hereafter further
amended, modified, supplemented, restated or amended and restated.

     11. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Company, the Administrative Agent, each of the other Guarantors and
each of the Lenders, and their respective successors, legal representatives, and assignees to the
extent such assignees are permitted assignees as provided in Section 10.06 of the Credit
Agreement.

[Signatures on following pages.]

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     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made, executed and
delivered by their duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	BORROWER:

GROUP 1 REALTY, INC.

 	 
	 	By:  	/s/ John C. Rickel
 	 
	 	 	Name:  	John C. Rickel 	 
	 	 	Title:  	President 	 
	 
	 	COMPANY:

GROUP 1 AUTOMOTIVE, INC.

 	 
	 	By:  	/s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	GUARANTORS:

BARON DEVELOPMENT COMPANY, L.L.C.

IVORY AUTO PROPERTIES OF SOUTH

CAROLINA, LLC

 	 
	 	By:  	GROUP 1 REALTY, INC., its Sole Member
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	BOHN HOLDINGS, LLC
 	 
	 	By: 	BOHN
HOLDINGS, INC., its Sole Member
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

Signature Page

 

	 	 	 	 	 
	 	BOHN-FII, LLC
 	 
	 
	 	By:  	BOHN HOLDINGS-F, INC., its Sole Member
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	DANVERS-SU, LLC

 	 
	 	By:  	GROUP 1 HOLDINGS-S, LLC, its Sole Member
 	 
	 
	 	By:  	GROUP 1 AUTOMOTIVE, INC., its Sole Member
 	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GPI KS-SV, LLC

 	 
	 	By:  	GPI KS-SB, INC., its Sole Member
 	 
	 
	 	By:  	                  /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GROUP 1 ASSOCIATES HOLDINGS, LLC

 	 
	 	By:  	GROUP 1 ASSOCIATES, INC., its Sole Member
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

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	 	HOWARD-DCIII, LLC

GROUP 1 HOLDINGS-DC, L.L.C.

GROUP 1 HOLDINGS-F, L.L.C.

GROUP 1 HOLDINGS-GM, L.L.C.

GROUP 1 HOLDINGS-H, L.L.C.

GROUP 1 HOLDINGS-N, L.L.C.

GROUP 1 HOLDINGS-S, LLC

GROUP 1 HOLDINGS-T, L.L.C.

 	 
	 	By:  	GROUP 1 AUTOMOTIVE, INC., its Sole Member
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	HARVEY GM, LLC

HARVEY OPERATIONS-T, LLC

 	 
	 	By:  	BOHN HOLDINGS, LLC, its Sole Member
 	 
	 
	 	By:  	                                              BOHN HOLDINGS, INC., its Sole Member
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	IRA AUTOMOTIVE GROUP, LLC

 	 
	 	By:  	DANVERS-T, INC., its Sole Member
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

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	 	CHAPERRAL DODGE, INC.

KUTZ-N, INC.

LUBBOCK MOTORS-GM, INC.

LUBBOCK MOTORS-S, INC.

LUBBOCK MOTORS-SH, INC.

LUBBOCK MOTORS-T, INC.

LUBBOCK MOTORS, INC.

MAXWELL-N, INC.

MAXWELL-NII, INC.

MAXWELL CHRYSLER DODGE JEEP, INC.

MCCALL-HA, INC.

MCCALL-T, INC.

MCCALL-TII, INC.

MCCALL-TL, INC.

MCCALL-H, INC.

MCCALL-N, INC.

MCCALL-SB, INC.

PRESTIGE CHRYSLER NORTHWEST, INC.

WEST CENTRAL MANAGEMENT COMPANY, INC.

	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	AMARILLO MOTORS-C, LTD.

AMARILLO MOTORS-J, LTD.

AMARILLO MOTORS-SM, LTD.

GPI, LTD.

MAXWELL-G, LTD.

MCCALL-SL, LTD.

PRESTIGE CHRYSLER SOUTH, LTD.

ROCKWALL AUTOMOTIVE-DCD, LTD.

	 
	 
	 	By:  	                                              GROUP 1 ASSOCIATES, INC., its General Partner
 	 
	 
	 	By:  	                        /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

4

 

	 	 	 	 	 
	 	BOB HOWARD AUTOMOTIVE-EAST, INC.

BOB HOWARD CHEVROLET, INC.

BOB HOWARD DODGE, INC.

BOB HOWARD MOTORS, INC.

BOB HOWARD NISSAN, INC.

BOHN HOLDINGS, INC.

BOHN HOLDINGS-F, INC.

CASA CHEVROLET INC.

CASA CHRYSLER PLYMOUTH JEEP INC.

DANVERS — DCIII, INC.

DANVERS — DCII, INC.

DANVERS-N, INC.

DANVERS — NII, INC.

DANVERS — S, INC.

DANVERS-SB, INC.

DANVERS-T, INC.

DANVERS-TII, INC.

DANVERS-TIII, INC.

DANVERS — TL, INC.

FMM, INC.

GPI AL-N, INC.

GPI ATLANTA-T, INC.

GPI CA-NIII, INC.

GPI CA-TII, INC.

GPI KS-SB, INC.

GPI MS-H, INC.

GPI MS-N, INC.

GPI MS-SK, INC.

GPI NH-T, INC.

GPI NH-TL, INC.

GPI SAC-SK, INC.

GPI SAC-T, INC.

GPI SC-SB, INC.

GPI SD-DC, INC.

GPI SD-IMPORTS, INC.

GROUP 1 ASSOCIATES, INC.

GROUP 1 FL HOLDINGS, INC.

 	 
	 	By:  	/s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

5

 

	 	 	 	 	 
	 	HOWARD-DCII, INC.

HOWARD-GM, INC.

HOWARD-GM II, INC.

HOWARD-GMIII, INC.

HOWARD-H, INC.

HOWARD-HA, INC.

HOWARD-SB, INC.

HOWARD-FLMII, INC.

HOWARD PONTIAC-GMC, INC.

LUBY CHEVROLET CO.

MIKE SMITH AUTOMOTIVE — H, INC.

MIKE SMITH AUTOMOTIVE-N, INC.

MIKE SMITH AUTOPLAZA, INC.

MIKE SMITH AUTOPLEX BUICK, INC.

MIKE SMITH AUTOPLEX DODGE, INC.

MIKE SMITH AUTOPLEX, INC.

MIKE SMITH AUTOPLEX-GERMAN IMPORTS, INC.

MIKE SMITH GM, INC.

MIKE SMITH IMPORTS, INC.

MIKE SMITH MOTORS, INC.

MILLER-DM, INC.

MILLER-SH, INC.

MILLER AUTOMOTIVE GROUP, INC.

MILLBRO, INC.

MILLER FAMILY COMPANY, INC.

MILLER IMPORTS, INC.

MILLER INFINITI INC.

MILLER NISSAN, INC.

NJ-DM, INC.

NJ-H, INC.

NJ-HA, INC.

NJ-HAII, INC.

NJ-HII, INC.

NJ-SB, INC.

NJ-SV, INC.

 	 
	 	By:  	/s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

6

 

	 	 	 	 	 
	 	NY-FV, INC.

NY-FVII, INC.

NY-SB, INC.

NY-SBII, INC.

SUNSHINE BUICK PONTIAC GMC TRUCK, INC.

GROUP 1 FUNDING, INC.

GPI CA-DMII, INC.

NY-DM, INC.

ADVANTAGECARS.COM, INC.

 	 
	 	By:  	/s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GROUP 1 LP INTERESTS-DC, INC.

GROUP 1 LP INTERESTS-GM, INC.

GROUP 1 LP INTERESTS-S, INC.

 	 
	 	By:  	/s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 
	 
	 	GPI SC-SV, LLC

 	 
	 	By:  	                     GPI SC-SB, INC., its sole Member
 	 
	 
	 	By:  	                       /s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President 	 

7

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as Administrative

Agent

 	 
	 	By:  	/s/ Anne M. Zeschke
 	 
	 	 	Name:  	Anne M. Zeschke 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	LENDERS:

BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ M. Patricia Kay
 	 
	 	 	Name:  	M. Patricia Kay 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Jonathan S. Heine
 	 
	 	 	Name:  	Jonathan S. Heine 	 
	 	 	Title:  	Vice President 	 
	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ H. David Jones
 	 
	 	 	Name:  	H. David Jones 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Jim Webber
 	 
	 	 	Name:  	Jim Webber 	 
	 	 	Title:  	Commercial RM, VP 	 
	 
	 	NISSAN MOTOR ACCEPTANCE CORPORATION

 	 
	 	By:  	/s/ Ed Littleton
 	 
	 	 	Name:  	Ed Littleton 	 
	 	 	Title:  	Manager Commercial Credit 	 

8

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Michael R. Burkitt
 	 
	 	 	Name:  	Michael R. Burkitt 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	SOVEREIGN BANK

 	 
	 	By:  	/s/ Kyle S. Bourque
 	 
	 	 	Name:  	Kyle S. Bourque 	 
	 	 	Title:  	Vice President 	 
	 
	 	TOYOTA MOTOR CREDIT CORPORATION

 	 
	 	By:  	/s/ Mark Doi
 	 
	 	 	Name:  	Mark Doi 	 
	 	 	Title:  	National Dealer  Credit Manager 	 
	 
	 	BMW FINANCIAL SERVICES NA, LLC

 	 
	 	By:  	          -
 	 
	 	 	Name:  	     - 	 
	 	 	Title:  	     - 	 
	 

9exv10w27

 

Exhibit 10.27

Group 1 Automotive, Inc.

Summary of Non-Employee Director Compensation

Effective January 1, 2008

	 	 	 	 	 
	 	 	Amount
	Annual Retainer1:
	 	 	 	 
	Cash
	 	$	35,000	 
	Stock2
	 	 	70,000	 
	Additional Annual Retainers:
	 	 	 	 
	Non-Executive Chairman of the Board
	 	 	100,000	 
	Audit Committee Chair
	 	 	25,000	 
	Compensation Committee Chair
	 	 	10,000	 
	All Other Committee Chairs
	 	 	7,500	 
	Presiding Director
	 	 	15,000	 
	Meeting Fees3:
	 	 	 	 
	Board
	 	 	2,500	 
	Audit Committee
	 	 	2,500	 
	Non-Audit Committee
	 	 	1,500	 
	Vehicle Stipend
	 	 	17,600	 

 

			
	1.	 	Payable in quarterly installments.
	 
	2.	 	Granted under Group 1 Automotive, Inc. 2007 Long Term Incentive Plan; valued at the date of
grant.
	 
	3.	 	Abbreviated meetings, as determined at the discretion of the chair, will result in the
payment of one-half of the regular fees for the meeting.

Summary of Director

Stock Ownership Guidelines

Approved November 2004

Directors are required to maintain ownership of a minimum of 3,000 shares of Group 1
Automotive, Inc.’s common stock. The minimum ownership requirement must be achieved within
three years of election to the Board of Directors (or in the case of the individuals serving as
directors in November 2004, by November 2007). Restricted stock granted to directors as part of
the annual retainer counts toward the minimum ownership requirement without regard to the vesting
or other liquidity provisions related thereto.

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