Document:

Exhibit 10.2

EXECUTION COPY

 

 

Opening
Transaction

	
  

  To:

  	
  Asbury Automotive Group, Inc.

  622 Third Avenue

  37th Floor

  New York, NY 10017

  
	
   

  	
   

  
	
  A/C:

  	
  028613248

  
	
   

  	
   

  
	
  From:

  	
  Goldman, Sachs & Co.

  
	
   

  	
   

  
	
  Re:

  	
  Convertible Bond Hedge Transaction

  
	
   

  	
   

  
	
  Ref. No:

  	
  SDB1625367450

  
	
   

  	
   

  
	
  Date:

  	
  March 12, 2007

  

 

Dear Sir(s):

The purpose of this communication (this “Confirmation”) is to set forth the terms
and conditions of the above-referenced transaction entered into on the Trade
Date specified below (the “Transaction”) between Goldman,
Sachs & Co.  (“Dealer”)
and Asbury Automotive Group, Inc. (“Counterparty”).  This communication constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below.

1.     This
Confirmation is subject to, and incorporates, the definitions and provisions of
the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions
and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with
the 2000 Definitions, the “Definitions”), in each case as
published by the International Swaps and Derivatives Association, Inc. (“ISDA”). 
In the event of any inconsistency between the 2000 Definitions and the
Equity Definitions, the Equity Definitions will govern.  Certain defined terms used herein have the
meanings assigned to them in the Indenture to be dated as of March 16, 2007
between Counterparty and  The Bank of New
York, as trustee (the “Indenture”)
relating to the USD100,000,000 principal amount of 3.00% convertible notes due 2012
(the “Convertible Notes”).  In the event of any inconsistency between the
terms defined in the Indenture and this Confirmation, this Confirmation shall
govern.  For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the
Indenture most recently reviewed by the parties at the time of execution of
this Confirmation.  If any relevant
sections of the Indenture are changed, added or renumbered prior to execution
of the Indenture, the parties will amend this Confirmation in good faith to
preserve the economic intent of the parties, as evidenced by such draft of the
Indenture.  The Transaction is subject to
early unwind if the closing of the Convertible Notes is not consummated for any
reason, as set forth below in Section 8(k).

Each party is hereby advised, and each such party acknowledges, that
the other party has engaged in, or refrained from engaging in, substantial
financial transactions and has taken other material actions in reliance upon
the parties’ entry into the Transaction to which this Confirmation relates on
the terms and conditions set forth below.

This Confirmation evidences a complete and binding
agreement between Dealer and Counterparty as to the terms of the Transaction to
which this Confirmation relates.  This
Confirmation shall be subject to an agreement (the “Agreement”)
in the form of the 1992 ISDA Master Agreement as if Dealer and

Counterparty had executed
an agreement in such form on the date hereof (but without any Schedule except
for (i) the election of Loss and Second Method in respect of Payments on Early
Termination and US Dollars (“USD”) as the
Termination Currency, and (ii) the replacement of the word “third” in the last
line of Section 5(a)(i) of the Agreement with the word “first”, and (iii) the
election that the “Cross Default” provisions of Section 5(a)(vi) of the
Agreement shall apply to Counterparty with a “Threshold Amount” of USD15
million).

All provisions contained in, or incorporated by
reference to, the Agreement will govern this Confirmation except as expressly
modified herein.  In the event of any
inconsistency between this Confirmation and either the Definitions or the
Agreement, this Confirmation shall govern.

The Transaction hereunder shall be the sole
Transaction under the Agreement.  If
there exists any ISDA Master Agreement between Dealer and Counterparty or any
confirmation or other agreement between Dealer and Counterparty pursuant to
which an ISDA Master Agreement is deemed to exist between Dealer and
Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which
Dealer and Counterparty are parties, the Transaction shall not be considered
Transactions under, or otherwise governed by, such existing or deemed ISDA
Master Agreement.

2.     The
Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions.  The terms of the particular
Transaction to which this Confirmation relates are as follows:

	
  General Terms:

  	
   

  
	
   

  	
   

  
	
  Trade Date:

  	
  March 12, 2007

  
	
   

  	
   

  
	
  Effective Date:

  	
  March 16, 2007

  
	
   

  	
   

  
	
  Option Style:

  	
  Modified American, as described under “Procedures
  for Exercise” below.

  
	
   

  	
   

  
	
  Option Type:

  	
  Call

  
	
   

  	
   

  
	
  Seller:

  	
  Dealer

  
	
   

  	
   

  
	
  Buyer:

  	
  Counterparty

  
	
   

  	
   

  
	
  Shares:

  	
  The Common Stock of Counterparty, par value USD0.01
  per share (Ticker Symbol: “ABG”).

  
	
   

  	
   

  
	
  Number of
  Options:

  	
  The number of Convertible Notes in denominations of
  USD1,000 principal amount issued by Counterparty on the closing date for the
  initial issuance of the Convertible Notes; provided
  that the Number of Options shall be automatically increased as of the date of
  exercise by the representative of the Initial Purchasers (as defined in the
  Purchase Agreement) of their option pursuant to Section 2 of the Purchase
  Agreement dated as of March 12, 2007 between Counterparty and Dealer, as representative
  of the Initial Purchasers party thereto (the “Purchase Agreement”), by the number of Convertible Notes in
  denominations of USD1,000 principal amount issued pursuant to such exercise
  (such Convertible Notes, the “Additional Convertible
  Notes”).  For the avoidance
  of doubt, the Number of Options outstanding shall be reduced by each exercise
  of Options hereunder.

  

 

 2
 

 

	
  Option Entitlement:

  	
  As of any date, a
  number of Shares per Option equal to the Conversion Rate (as defined in the
  Indenture, but without regard to any adjustments to the Conversion Rate
  pursuant to Sections 13.01(e) or 13.04(f) of the Indenture).

  
	
   

  	
   

  
	
  Strike Price:

  	
  As of any date, an amount in USD, rounded to the
  nearest cent (with 0.5 cents being rounded upwards), equal to USD1,000 divided by the Option Entitlement.

  
	
   

  	
   

  
	
  Number of
  Shares:

  	
  The product of the Number of Options, the Option
  Entitlement and the Applicable Percentage.

  
	
   

  	
   

  
	
  Applicable
  Percentage:

  	
  40%

  
	
   

  	
   

  
	
  Premium:

  	
  USD6,716,000 (Premium per Option USD67.16); provided that if the Number of Options
  is increased pursuant to the proviso to the definition of “Number of Options”
  above, an additional Premium equal to the product of the number of Options by
  which the Number of Options is so increased and the Premium per Option shall
  be paid on the Additional Premium Payment Date.

  
	
   

  	
   

  
	
  Premium Payment
  Date:

  	
  The Effective Date

  
	
   

  	
   

  
	
  Additional
  Premium Payment Date:

  	
  The closing date for the purchase and sale of the
  Additional Convertible Notes.

  
	
   

  	
   

  
	
  Exchange:

  	
  New York Stock Exchange

  
	
   

  	
   

  
	
  Related
  Exchange:

  	
  All Exchanges

  
	
   

  	
   

  
	
  Procedures for
  Exercise:

  	
   

  
	
   

  	
   

  
	
  Exercise Date:

  	
  Each Conversion Date.

  
	
   

  	
   

  
	
  Conversion Date:

  	
  Each “Conversion Date”, as defined in the Indenture occurring
  during the Exercise Period for Convertible Notes (such Convertible Notes, the
  “Relevant Convertible Notes” for
  such Conversion Date).

  
	
   

  	
   

  
	
  Exercise Period:

  	
  The period from and excluding the Trade Date to and
  including the Expiration Date.

  
	
   

  	
   

  
	
  Expiration Date:

  	
  The earlier of (i) the last day on which any
  Convertible Notes remain outstanding and (ii) the third Scheduled Trading Day
  immediately preceding September 15, 2012 (the “Maturity
  Date”)

  
	
   

  	
   

  
	
  Scheduled Trading
  Day:

  	
  As defined in the Indenture.

  
	
   

  	
   

  
	
  VWAP Trading
  Day:

  	
  As defined in the Indenture.

  
	
   

  	
   

  
	
  Required
  Exercise on

  	
   

  
	
  Conversion
  Dates:

  	
  On each Conversion Date, a number of Options equal
  to the number of Relevant Convertible Notes for such Conversion Date in
  denominations of USD1,000 principal amount shall be automatically exercised,
  subject to “Notice of Exercise” below.

  
	
   

  	
   

  
	
  Notice of
  Exercise:

  	
  Notwithstanding anything to the contrary in the

  

 

 3
 

 

	
  

  	
  Equity Definitions, Dealer shall have no obligation
  to make any payment or delivery in respect of any exercise of Options
  hereunder unless Counterparty notifies Dealer in writing prior to 5:00 P.M.,
  New York City time, on the Scheduled Trading Day prior to the first Exchange
  Business Day of the “Observation Period”, as defined in the Indenture,
  relating to the Relevant Convertible Notes converted on the relevant
  Conversion Date on which such Exercise Date occurs (the “Notice
  Deadline”) of (i) the number of Options being exercised on such
  Exercise Date, (ii) the scheduled settlement date under the Indenture for the
  Relevant Convertible Notes converted on the relevant Conversion Date and
  (iii) the first Scheduled Trading Day of the relevant Observation
  Period.  Notwithstanding the foregoing,
  (x) in respect of Options with an Exercise Date occurring during the period
  from and including the 35th Scheduled
  Trading Day prior to the Maturity Date to and including the Expiration Date
  (the “Final Conversion Period”), the Notice
  Deadline shall be 12:00 noon, New York City time on the Scheduled Trading Day
  immediately following the Expiration Date and the content of such notice
  shall be as set forth in clauses (i) and (ii) above as they relate to all
  Exercise Dates occurring during the Final Conversion Period and (y) such
  notice (and the related automatic exercise of Options) shall be effective if
  given after the Notice Deadline but prior to 5:00 P.M., New York City time,
  on the fifth Scheduled Trading Day of such Observation Period, in which event
  the Calculation Agent shall have the right to adjust the Delivery Obligation
  (as defined below) as appropriate to reflect the additional costs (including,
  but not limited to, hedging mismatches and market losses) and expenses
  incurred by Dealer or any of its affiliates in connection with hedging
  activities (including the unwinding of any hedge position) as a result of
  Dealer not having received such notice prior to the Notice Deadline.  For the avoidance of doubt, if Counterparty
  fails to give such notice when due in respect of any exercise of Options
  hereunder, Dealer’s obligations to make any payment or delivery in respect of
  such exercise shall be permanently extinguished, and late notice shall not
  cure such failure.

  
	
   

  	
   

  
	
  Dealer’s
  Telephone Number

  	
   

  
	
  and Telex and/or
  Facsimile Number

  	
   

  
	
  and Contact
  Details for purpose of

  	
   

  
	
  Giving Notice:

  	
  To:

  	
  Goldman, Sachs & Co.

  
	
   

  	
   

  	
  One New York
  Plaza

  
	
   

  	
   

  	
  New York, NY
  10004

  
	
   

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Equity Operations:

  
	
   

  	
   

  	
  Options and
  Derivatives

  
				

 

 4
 

 

	
  

  	
  Telephone:

  	
  (212) 902-8996

  
	
   

  	
  Facsimile:

  	
  (212) 902-0112

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Tracey McCabe

  
	
   

  	
   

  	
  Equity Capital
  Markets

  
	
   

  	
  Telephone:

  	
  (212) 357-0428

  
	
   

  	
  Facsimile:

  	
  (212) 902-3000

  
	
   

  	
   

  	
   

  
	
  Settlement
  Terms:

  	
   

  
	
   

  	
   

  
	
  Settlement Date:

  	
  For any Exercise Date, the settlement date for the Shares
  to be delivered in respect of the Relevant Convertible Notes for the relevant
  Conversion Date under the terms of the Indenture.

  
	
   

  	
   

  
	
  Delivery
  Obligation:

  	
  In lieu of the obligations set forth in Sections 8.1
  and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above,
  in respect of any Exercise Date, Dealer will deliver to Counterparty, on the
  related Settlement Date, a number of Shares equal to the product of the
  Applicable Percentage and the aggregate number of Shares, if any (and cash in
  lieu of fractional Shares, if any) that Counterparty is obligated to deliver to
  the holder(s) of the Relevant Convertible Notes for the corresponding
  Conversion Date pursuant to Section 13.02 of the Indenture (such Shares, the
  “Convertible Obligation”); provided that such obligation shall be determined
  excluding any Shares (and cash in lieu of fractional Shares) that
  Counterparty is obligated to deliver to holder(s) of the Relevant Convertible
  Notes as a direct or indirect result of any adjustments to the Conversion
  Rate pursuant to Sections 13.01(e) or 13.04(f) of the Indenture and any
  interest payment that the Counterparty is obligated to deliver to holder(s)
  of the Relevant Convertible Note. For the avoidance of doubt, in respect of
  any Exercise Date, if the “Daily Conversion Value”, as defined in the
  Indenture, for each VWAP Trading Day during the relevant Observation Period
  is less than or equal to USD33.33 in the case of the first 20 VWAP Trading
  Days and USD33.34 in the case of the last 10 VWAP Trading Days, as the case
  may be, for each VWAP Trading Day in the Observation Period, Dealer will have
  no delivery obligation hereunder in respect of such Exercise Date.

  
	
   

  	
   

  
	
  Notice of
  Delivery Obligation:

  	
  No later than the Exchange Business Day immediately
  following the last day of the Observation Period, Counterparty shall give
  Dealer notice of the final number of Shares and/or the amount of cash
  comprising the Convertible Obligation; provided
  that, with respect to any Exercise Date occurring during the Final Conversion
  Period, Counterparty may provide Dealer with a

  

 

 5
 

 

	
  

  	
  single notice of the aggregate number of Shares
  and/or the amount of cash comprising the Convertible Obligations for all such
  Exercise Dates (it being understood, for the avoidance of doubt, that the
  requirement of Counterparty to deliver such notice shall not limit
  Counterparty’s obligations with respect to Notice of Exercise, as set forth
  above, in any way).

  
	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
  To the extent Dealer is obligated to deliver Shares
  hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12
  of the Equity Definitions will be applicable as if “Physical Settlement”
  applied to the Transaction; provided
  that the Representation and Agreement contained in Section 9.11 of the Equity
  Definitions shall be modified by excluding any representations therein
  relating to restrictions, obligations, limitations or requirements under
  applicable securities laws that exist as a result of the fact that Counterparty
  is the issuer of the Shares.

  
	
   

  	
   

  
	
  Restricted
  Certificated Shares:

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, Dealer may, in whole or in part, deliver Shares in
  certificated form representing the Number of Shares to be Delivered to
  Counterparty in lieu of delivery through the Clearance System.

  
	
   

  	
   

  
	
  Adjustments:

  	
   

  
	
   

  	
   

  
	
  Method of
  Adjustment:

  	
  Notwithstanding Section 11.2 of the Equity
  Definitions, upon the occurrence of any event or condition set forth in
  Sections 13.04(a), (b), (c), (d) and (e) of the Indenture, the Calculation
  Agent shall make the corresponding adjustment in respect of any one or more
  of the Number of Options, the Option Entitlement and any other variable
  relevant to the exercise, settlement or payment of the Transaction, to the
  extent an analogous adjustment is made under the Indenture. Promptly
  following the occurrence of any Adjustment Event, as defined in the
  Indenture, Counterparty shall notify the Calculation Agent of such Adjustment
  Event; and once the adjustments to be made to the terms of the Indenture and
  the Convertible Notes in respect of such Adjustment Event have been
  determined, Counterparty shall promptly notify the Calculation Agent in
  writing of the details of such adjustments. The Calculation Agent shall,
  promptly after receiving such notice, make any corresponding adjustments to
  the terms of the Transaction and notify Dealer and Counterparty thereof. In
  addition, at least 10 Scheduled Trading Days prior to the ex-dividend date
  for any cash dividend or distribution that would constitute the occurrence of
  an Adjustment Event set forth in Section 13.04(d) of the Indenture and not
  earlier than the public announcement by Counterparty of such dividend or
  distribution, Counterparty shall notify the Calculation Agent of such
  Adjustment Event and the

  

 

 6
 

 

	
  

  	
  ex-dividend date for such cash dividend or
  distribution.

  
	
   

  	
   

  
	
  Extraordinary
  Events:

  	
   

  
	
   

  	
   

  
	
  Merger Events:

  	
  Notwithstanding Section 12.1(b) of the Equity
  Definitions, a “Merger Event” means the occurrence of any event or condition
  set forth in Section 13.10 of the Indenture.

  
	
   

  	
   

  
	
  Consequences of
  Merger Events:

  	
  Notwithstanding Section 12.2 of the Equity
  Definitions, upon the occurrence of a Merger Event, the Calculation Agent
  shall make the corresponding adjustment in respect of any adjustment under
  the Indenture to any one or more of the nature of the Shares, the Number of
  Options, the Option Entitlement and any other variable relevant to the
  exercise, settlement or payment for the Transaction, to the extent an
  analogous adjustment is made under the Indenture in respect of such Merger
  Event; provided  that
  such adjustment shall be made without regard to any
  adjustment to the Conversion Rate for the issuance of additional shares as
  set forth in Section 13.04(f) of the Indenture.

  
	
   

  	
   

  
	
  Notice of Merger
  Consideration:

  	
  Upon the occurrence of a Merger Event that causes
  the Shares to be converted into the right to receive more than a single type
  of consideration (determined based in part upon any form of stockholder
  election), Counterparty shall reasonably promptly (but in any event prior to
  the Merger Date) notify the Calculation Agent of the weighted average of the
  types and amounts of consideration to be received by the holders of Shares
  entitled to receive cash, securities or other property or assets with respect
  to or in exchange for such Shares in any Merger Event who affirmatively make
  such an election.

  
	
   

  	
   

  
	
  Nationalization,
  Insolvency

  	
   

  
	
  or Delisting:

  	
  Cancellation and Payment (Calculation Agent Determination);
  provided that in addition to
  the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will
  also constitute a Delisting if the Exchange is located in the United States
  and the Shares are not immediately re-listed, re-traded or re-quoted on any
  of the New York Stock Exchange, the American Stock Exchange, the NASDAQ
  Global Select Market or the NASDAQ Global Market (or their respective
  successors); if the Shares are immediately re-listed, re-traded or re-quoted
  on any such exchange or quotation system, such exchange or quotation system
  shall thereafter be deemed to be the Exchange. For the avoidance of doubt,
  the occurrence of any event that is a Merger Event and would also constitute
  a Delisting shall first have the consequences specified for the relevant
  Merger Event and following that have the consequences specified for the
  relevant Delisting.

  

 

 7
 

 

	
  Additional Disruption
  Events:

  	
   

  
	
   

  	
   

  
	
  (a)

  	
  Change in Law:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  Failure to Deliver:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (c)

  	
  Insolvency Filing:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (d)

  	
  Hedging Disruption:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (e)

  	
  Increased Cost of Hedging:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
  For all applicable Additional Disruption Events,
  Dealer

  
	
   

  	
   

  
	
  Determining
  Party:

  	
  For all applicable Additional Disruption Events,
  Dealer

  
	
   

  	
   

  
	
  Non-Reliance:

  	
  Applicable

  
	
   

  	
   

  
	
  Agreements and
  Acknowledgments

  	
   

  
	
  Regarding
  Hedging Activities:

  	
  Applicable

  
	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
  Applicable

  
	
   

  	
   

  
	
  3.

  	
  Calculation Agent:

  	
  Dealer. The Calculation Agent shall, upon request by
  either party, provide a written explanation of any calculation made by it
  including, where applicable, a description of the methodology and data
  applied.

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Account Details:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dealer Payment
  Instructions:

  	
   

  
	
   

  	
   

  
	
  Chase Manhattan
  Bank New York

  	
   

  
	
  For A/C Goldman,
  Sachs & Co.

  	
   

  
	
  A/C
  #930-1-011483

  	
   

  
	
  ABA: 021-000021

  	
   

  
	
   

  	
   

  
	
   

  	
  Counterparty Payment Instructions:

  	
   

  
	
   

  	
   

  	
   

  
	
  To be provided
  by Counterparty.

  	
   

  
	
   

  	
   

  
	
  5.

  	
  Offices:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Office of Dealer for the Transaction is:

  
	
   

  	
   

  	
   

  
	
   

  	
  One New York Plaza, New
  York, New York 10004

  
	
   

  	
   

  	
   

  
	
   

  	
  The Office of Counterparty for the Transaction is:

  
	
   

  	
   

  	
   

  
	
   

  	
  622 Third Avenue, 37th Floor, New York, New York 10017

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Notices: For purposes of this
  Confirmation:

  
	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Address for notices or communications to
  Counterparty:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:

  	
  Asbury Automotive Group

  
	
   

  	
   

  	
   

  	
  622 Third Avenue, 37th Floor

  
	
   

  	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
  Attn:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
  Telephone:

  	
  212-885-2500

  
	
   

  	
   

  	
  Facsimile:

  	
  212-297-2645

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  General Counsel

  
						

 

 8
 

 

	
  

  	
   

  	
  Facsimile:

  	
  212-297-2653

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Address for notices or communications to Dealer:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:

  	
  Goldman, Sachs & Co.

  
	
   

  	
   

  	
   

  	
  One New York
  Plaza

  
	
   

  	
   

  	
   

  	
  New York, NY
  10004

  
	
   

  	
   

  	
  Attn:

  	
  Equity Operations: Options and Derivatives

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 902-1981

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 428-1980/1983

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  Tracey McCabe

  
	
   

  	
   

  	
   

  	
  Equity Capital
  Markets

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 357-0428

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 902-3000

  

 

7.     Representations,
Warranties and Agreements:

(a)           In addition to the
representations and warranties in the Agreement and those contained elsewhere
herein, Counterparty represents and warrants to and for the benefit of, and
agrees with, Dealer as follows:

(i)            On the Trade Date,
(A) none of Counterparty and its officers and directors is aware of any
material nonpublic information regarding Counterparty or the Shares and (B) all
reports and other documents filed by Counterparty with the Securities and
Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), when considered as a whole
(with the more recent such reports and documents deemed to supercede inconsistent
statements contained in any earlier such reports and documents), do not contain
any untrue statement of a material fact or any omission of a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances in which they were made, not misleading.

(ii)           (A) On the Trade
Date, the Shares or securities that are convertible into, or exchangeable or
exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) as a result of activity by Counterparty or
its affiliates or as a result of activity known to Counterparty and (B)
Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M,
until the second Exchange Business Day immediately following the Trade Date.

(iii)          On the Trade Date,
neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as
defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”))
shall directly or indirectly (including, without limitation, by means of any
cash-settled or other derivative instrument) purchase, offer to purchase, place
any bid or limit order that would effect a purchase of, or commence any tender
offer relating to, any Shares (or an equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or a depository share) or
any security convertible into or exchangeable or exercisable for Shares, except
through Goldman, Sachs & Co.

(iv)          Counterparty
acknowledges that neither Dealer nor any of its affiliates is making any
representations or warranties with respect to the treatment of the Transaction
under FASB Statements 128, 133 (as amended), 149 or 150, EITF Issue Nos. 00-19,
01-06 or 03-06 (or any successor issue statements) or under FASB’s Liabilities
& Equity Project.

(v)           Without limiting the
generality of Section 3(a)(iii) of the Agreement, the Transaction will not
violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

 9
 

(vi)          Prior to the Trade
Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board
of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.

(vii)         Counterparty is not
entering into this Confirmation to create actual or apparent trading activity
in the Shares (or any security convertible into or exchangeable for Shares) or
to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) or otherwise in violation
of the Exchange Act.

(viii)        Counterparty is not,
and after giving effect to the transactions contemplated hereby will not be,
required to register as, an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

(ix)           On each of the
Trade Date, and the Premium Payment Date and the Additional Premium Payment
Date, if any, Counterparty is not “insolvent” (as such term is defined under
Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States
Code) (the “Bankruptcy Code”)) and
Counterparty would be able to purchase the Shares hereunder in compliance with
the laws of the jurisdiction of Counterparty’s incorporation.

(x)            The representations
and warranties of Counterparty set forth in Section 3 of the Agreement and
Section 1 of the Purchase Agreement are true and correct and are hereby deemed
to be repeated to Dealer as if set forth herein.

(b)           Each of Dealer and
Counterparty agrees and represents that it is an “eligible contract participant”
as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c)           Each of Dealer and
Counterparty acknowledges that the offer and sale of the Transaction to it is
intended to be exempt from registration under the Securities Act of 1933, as
amended (the “Securities Act”), by virtue of
Section 4(2) thereof.  Accordingly,
Counterparty represents and warrants to Dealer that (i) it has the financial
ability to bear the economic risk of its investment in the Transaction and is
able to bear a total loss of its investment and its investments in and
liabilities in respect of the Transaction, which it understands are not readily
marketable, are not disproportionate to its net worth, and it is able to bear
any loss in connection with the Transaction, including the loss of its entire
investment in the Transaction, (ii) it is an “accredited investor” as that term
is defined in Regulation D as promulgated under the Securities Act, (iii) it is
entering into the Transaction for its own account, (iv) the assignment,
transfer or other disposition of the Transaction has not been and will not be
registered under the Securities Act and is restricted under this Confirmation,
the Securities Act and state securities laws, and (v) its financial condition
is such that it has no need for liquidity with respect to its investment in the
Transaction and no need to dispose of any portion thereof to satisfy any
existing or contemplated undertaking or indebtedness and is capable of
assessing the merits of and understanding (on its own behalf or through independent
professional advice), and understands and accepts, the terms, conditions and
risks of the Transaction.

(d)           Each of Dealer and
Counterparty agrees and acknowledges (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 Dealer 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.

(e)           Each party
acknowledges and agrees to be bound by the Conduct Rules of the National
Association of Securities Dealers, Inc. applicable to transactions in options,
and further agrees not to violate the position and exercise limits set forth
therein.

(f)            Counterparty shall
deliver to Dealer an opinion of counsel, dated as of the Trade Date and
reasonably acceptable to Dealer in form and substance, with respect to the matters
set forth in Section 3(a) of the Agreement.

 10
 

8.  Other
Provisions:

(a)           Right to Extend.  Dealer
may postpone any Exercise Date or any other date of valuation or delivery by
Dealer, with respect to some or all of the relevant Options (in which event the
Calculation Agent shall make appropriate adjustments to the Delivery
Obligation), if Dealer determines, in its reasonable discretion, that such
extension is reasonably necessary or appropriate to preserve Dealer’s hedging
or hedge unwind activity hereunder in light of existing liquidity conditions in
the cash market or the stock borrow market or to enable Dealer to effect
purchases of Shares in connection with its hedging, hedge unwind or settlement
activity hereunder in a manner that would, if Dealer were Counterparty or an
affiliated purchaser of Counterparty, be in compliance with applicable legal,
regulatory or self-regulatory requirements, or with related policies and
procedures applicable to Dealer.

(b)           Additional Termination Events.  The occurrence of (i) an event of default
with respect to Counterparty under the terms of the Convertible Notes as set
forth in Section 6.01 of the Indenture, or (ii) an Amendment Event shall be an
Additional Termination Event with respect to which the Transaction is the sole
Affected Transaction and Counterparty is the sole Affected Party, and Dealer
shall be the party entitled to designate an Early Termination Amount pursuant
to Section 6(b) of the Agreement and to determine the Early Termination Amount
pursuant to Section 6(e)(ii)(1) of the Agreement.

“Amendment
Event” means that Counterparty amends, modifies, supplements or
receives a waiver in respect of any term of the Indenture or the Convertible
Notes governing the principal amount, coupon, maturity, repurchase obligation
of Counterparty, redemption right of Counterparty, any term relating to
conversion of the Convertible Notes (including changes to the conversion price,
conversion settlement dates or conversion conditions), or any term that would
require consent of the holders of not less than 100% of the principal amount of
the Convertible Notes to amend, in each case without the prior consent of Dealer,
such consent not to be unreasonably withheld.

(c)           Alternative Calculations and Payment on Early Termination and on
Certain Extraordinary Events. 
If, subject to Section 8(i) below, Dealer shall owe Counterparty any
amount pursuant to Section 12.2 of the Equity Definitions and “Consequences of
Merger Events” above, or Sections 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions
(except in the event of an Extraordinary Event, in each case, in which the
consideration or proceeds to be paid to holders of Shares consists solely of
cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the event of
an Event of Default in which Counterparty is the Defaulting Party or a
Termination Event in which Counterparty is the Affected Party, that resulted
from an event or events within Counterparty’s control) (a “Payment
Obligation”), Counterparty shall have the right, in its sole
discretion, to require Dealer to satisfy any such Payment Obligation by the
Share Termination Alternative (as defined below) by giving irrevocable
telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, between the hours of 9:00 A.M. and 4:00 P.M., New York City time, on the
Merger Date, Announcement Date or Early Termination Date, as applicable (“Notice of Share Termination”).  Upon such Notice of Share Termination, the
following provisions shall apply on the Scheduled Trading Day immediately
following the Merger Date, Announcement Date or Early Termination Date, as
applicable:

	
  Share Termination Alternative:

  	
  Applicable and means that Dealer shall deliver to
  Counterparty the Share Termination Delivery Property on the date on which the
  Payment Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of
  the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable
  (the “Share Termination Payment Date”), in
  satisfaction of the Payment Obligation.

  
	
   

  	
   

  
	
  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.

  

 

 11
 

 

	
  Share
  Termination Unit Price:

  	
  The 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 Dealer and Counterparty at the time of
  notification of the Payment Obligation.

  
	
   

  	
   

  
	
  Share Termination Delivery Unit:

  	
  In the case of a Termination Event, Event of Default
  or Delisting, one Share or, in the case of an Insolvency, Nationalization or
  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 Insolvency, Nationalization or Merger Event. If
  such Insolvency, Nationalization or 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:

  	
  Applicable

  
	
   

  	
   

  
	
  Other applicable provisions:

  	
  If Share Termination Alternative is applicable, the
  provisions of Sections 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity
  Definitions will be applicable as if “Physical Settlement” applied to the
  Transaction, except that all references to “Shares” shall be read as
  references to “Share Termination Delivery Units”; and provided that the Representation and
  Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,
  obligations, limitations or requirements under applicable securities laws as
  a result of the fact that Counterparty is the issuer of any Share Termination
  Delivery Units (or any part thereof).

  

 

(d)           Disposition of Hedge Shares. 
Counterparty hereby agrees that if, in
the good faith reasonable judgment of Dealer, the Shares (the “Hedge Shares”) acquired by Dealer for the
purpose of hedging its obligations pursuant to the Transaction cannot be sold
in the U.S. public market by Dealer without registration under the Securities
Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a registered
offering, make available to Dealer an effective registration statement under
the Securities Act to cover the resale of such Hedge Shares and (A) enter into
an agreement, in form and substance satisfactory to Dealer, substantially in
the form of an underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters in
customary form for registered offerings of equity securities, (C) provide
disclosure opinions of nationally recognized outside counsel to Counterparty reasonably
acceptable to Dealer, (D) provide other customary opinions, certificates and
closing documents customary in form for registered offerings of equity
securities and (E) afford Dealer a reasonable opportunity to conduct a “due
diligence” investigation with respect to Counterparty customary in scope for
underwritten offerings of equity securities; provided,
however, that if Dealer, in its reasonable discretion, is not
satisfied with access to due diligence materials, the results of its due
diligence investigation, or the procedures and documentation for the registered
offering referred to above, then clause (ii) or clause (iii) of this Section
8(d) shall apply at the election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement,
enter into a private placement agreement substantially similar to private
placement purchase agreements customary for private placements of equity
securities, in form and substance satisfactory to Dealer, including customary
representations, covenants, blue sky and other governmental filings and/or
registrations, indemnities to Dealer, due diligence rights (for Dealer or any
designated buyer of the Hedge Shares from Dealer),
opinions and certificates and such other documentation as is customary for
private placements agreements, all reasonably acceptable to Dealer (in which
case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any discount from the public market
price of the Shares incurred on the sale of Hedge Shares in a private
placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such Exchange Business Days, and in the
amounts, requested by Dealer.  “VWAP Price”
means, on any Exchange Business Day, the per Share volume-weighted average

 12
 

price as displayed under
the heading “Bloomberg VWAP” on Bloomberg page ABG.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 Exchange Business Day (or if such volume-weighted
average price is unavailable or manifestly incorrect, the market value of one
Share on such Exchange Business Day, as determined by the Calculation Agent
using a volume-weighted method).

(e)           Repurchase Notices. 
Counterparty shall, on any day on which Counterparty effects any
repurchase of Shares, promptly give Dealer a written notice of such repurchase
(a “Repurchase Notice”) on such day if,
following such repurchase, the Notice Percentage as determined on such day is
(i) greater than 6.0% and (ii) greater by 0.5% than the Notice Percentage
included in the immediately preceding Repurchase Notice (or, in the case of the
first such Repurchase Notice, greater than the Notice Percentage as of the date
hereof).  The “Notice
Percentage” as of any day is the fraction, expressed as a
percentage, the numerator of which is the Number of Shares and the denominator
of which is the number of Shares outstanding on such day.  In the event that Counterparty fails to
provide Dealer with a Repurchase Notice on the day and in the manner specified
in this Section 8(e) then Counterparty agrees to indemnify and hold harmless
Dealer and its directors, officers,
employees, agents and controlling persons (Dealer and each such person being an
“Indemnified Party”) from and against
any and all losses, claims, damages and liabilities (or actions in respect
thereof), joint or several, to which such Indemnified Party may become subject
under applicable securities laws, including without limitation, Section 16 of
the Exchange Act, relating to or arising out of such failure.  If for any reason the foregoing
indemnification is unavailable to any Indemnified Party or insufficient to hold
harmless any Indemnified Party, then Counterparty shall contribute, to the
maximum extent permitted by law, to the amount paid or payable by the
Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any
Indemnified Party for all expenses (including reasonable counsel fees and
expenses) as they are incurred (after notice to Counterparty) in connection
with the investigation of, preparation for or defense or settlement of any
pending or threatened claim or any action, suit or proceeding arising
therefrom, whether or not such Indemnified Party is a party thereto and whether
or not such claim, action, suit or proceeding is initiated or brought by or on
behalf of Counterparty.  This indemnity
shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant
to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Dealer.

(f)            Transfer and Assignment. 
Neither party may transfer or assign its rights and obligations
hereunder and under the Agreement, in whole or in part, without the consent of
non-transferring party; provided, that Dealer
may transfer or assign without any consent of Counterparty its rights and
obligations hereunder, in whole or in part, to (x) any of its affiliates,
so long as the obligations of such affiliate hereunder are guaranteed by The
Goldman Sachs Group, Inc. or (y) any third party with a rating (or whose guarantor
has a rating) for its long term, unsecured and unsubordinated indebtedness of A
or better by Standard & Poor’s Ratings Services or its successor (“S&P”),
or A2 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 Counterparty and Dealer; provided further that at any time at which the Equity
Percentage exceeds 9.0%, if Dealer, in its discretion, is unable to effect a
transfer or assignment to a third party in accordance with the provisions set
forth above after its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer such that the Equity Percentage is reduced to
8.5% or less, Dealer may designate any Scheduled Trading Day as an Early
Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, such that the Equity Percentage
following such partial termination will be equal to or less than 8.5%.  In the event that Dealer so designates an
Early Termination Date with respect to a portion of the Transaction, a payment
or delivery shall be made pursuant to Section 6 of the Agreement and Section
8(c) of this Confirmation as if (i) an Early Termination Date had been
designated in respect of a Transaction having terms identical to the Terminated
Portion of the Transaction, (ii) Counterparty shall be the sole Affected Party
with respect to such partial termination and (iii) such portion of the
Transaction shall be the only Terminated Transaction.  The “Equity Percentage”
as of any day is the fraction, expressed as a percentage, (A) the numerator of
which is the  number of Shares “beneficially
owned” (within the meaning of Section 13 of the Exchange Act) on such day by
Dealer, any of its affiliates subject to aggregation with Dealer for the
purposes of the “beneficial ownership” test under Section 13 of the Exchange
Act and all persons who may form a “group” (within the meaning of Rule
13d-5(b)(1) under the Exchange Act) with Dealer with respect to “beneficial
ownership”

 13
 

of any Shares, including,
in each case, without limitation, any Shares so owned as a hedge of the
Transaction or a related transaction and Shares the “beneficial ownership” of
which Dealer or Hedging Party has the right to acquire pursuant to a transaction
related to the Transaction, and (B) the denominator of which is the number of
Shares outstanding on such day. 
Counterparty may transfer or assign its rights and obligations hereunder
and under the Agreement, in whole or in part, to any party with the consent of
Dealer, such consent not to be unreasonably withheld.

(g)           Staggered Settlement. If the Staggered
Settlement Equity Percentage as of any Exchange Business Day during any
Observation Period is greater than 4.5%, Dealer may, by notice to Counterparty prior to the related Settlement Date (the “Nominal Settlement Date”), elect to deliver
the Shares on two or more dates (each, a “Staggered
Settlement Date”) or at two or more times on the Nominal Settlement
Date as follows:

(i)            in
such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement
Date, but not prior to the beginning of the related Observation Period) or
delivery times and how it will allocate the Shares it is required to deliver
under “Delivery Obligation” (above) among the Staggered Settlement Dates or
delivery times; and

(ii)           the
aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number
of Shares that Dealer would otherwise be required to deliver on such Nominal
Settlement Date.

The “Staggered
Settlement Equity Percentage” as of any day is the fraction,
expressed as a percentage, (A) the numerator of which is the sum of (i) the
number of Shares “beneficially owned” (within the meaning of Section 13 of the
Exchange Act) on such day by Dealer, any of its affiliates subject to
aggregation with Dealer for the purposes of the “beneficial ownership” test
under Section 13 of the Exchange Act and all persons who may form a “group”
(within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer
with respect to “beneficial ownership” of any Shares, excluding Shares so owned
as a hedge of the Transaction, plus (ii) the Number of Shares and (B) the
denominator of which is the number of Shares outstanding on such day.

(h)           Disclosure.  Effective
from the date of commencement of discussions concerning the Transaction,
Counterparty 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 Counterparty
relating to such tax treatment and tax structure.

(i)            Netting and Set-off.

(i)            If
on any date cash would otherwise be payable or Shares or other property would
otherwise be deliverable hereunder or pursuant to the Agreement or pursuant to
any other agreement between the parties by Counterparty to Dealer and cash
would otherwise be payable or Shares or other property would otherwise be
deliverable hereunder or pursuant to the Agreement or pursuant to any other
agreement between the parties by Dealer to Counterparty and the type of
property required to be paid or delivered by each such party on such date is
the same, then, on such date, each such party’s obligation to make such payment
or delivery will be automatically satisfied and discharged and, if the
aggregate amount that would otherwise have been payable or deliverable by one
such party exceeds the aggregate amount that would otherwise have been payable
or deliverable by the other such party, replaced by an obligation of the party
by whom the larger aggregate amount would have been payable or deliverable to
pay or deliver to the other party the excess of the larger aggregate amount
over the smaller aggregate amount.

(ii)           In
addition to and without limiting any rights of set-off that a party hereto may
have as a matter of law, pursuant to contract or otherwise, upon the occurrence
of an Early Termination Date, Dealer shall have the right to terminate,
liquidate and otherwise close out the Transaction and to set off any obligation
or right that Dealer or any affiliate of Dealer may have to or against
Counterparty hereunder or under the Agreement against any right or obligation
Dealer or any of its affiliates may have against or to Counterparty, including
without limitation any right to receive a payment or delivery pursuant to any
provision of the Agreement or hereunder. 
In the

 14
 

case of a set-off of any
obligation to release, deliver or pay assets against any right to receive
assets of the same type, such obligation and right shall be set off in
kind.  In the case of a set-off of any
obligation to release, deliver or pay assets against any right to receive
assets of any other type, the value of each of such obligation and such right
shall be determined by the Calculation Agent and the result of such set-off
shall be that the net obligor shall pay or deliver to the other party an amount
of cash or assets, at the net obligor’s option, with a value (determined, in
the case of a delivery of assets, by the Calculation Agent) equal to that of
the net obligation.  In determining the
value of any obligation to release or deliver Shares or any right to receive
Shares, the value at any time of such obligation or right shall be determined
by reference to the market value of the Shares at such time, as determined by
the Calculation Agent.  If an obligation
or right is unascertained at the time of any such set-off, the Calculation
Agent may in good faith estimate the amount or value of such obligation or
right, in which case set-off will be effected in respect of that estimate, and
the relevant party shall account to the other party at the time such obligation
or right is ascertained.

(iii)          Notwithstanding
any provision of the Agreement (including without limitation Section 6(f)
thereof) and this Confirmation (including without limitation this Section 8(i))
or any other agreement between the parties to the contrary, (A) Counterparty
shall not net or set off its obligations under the Transaction, if any, against
its rights against Dealer under any other transaction or instrument and (B)
Dealer may net and set off any rights of Dealer against Counterparty arising
under the Transaction only against obligations of Dealer to Counterparty
arising under any transaction or instrument if such transaction or instrument
does not convey rights to Dealer senior to the claims of common stockholders in
the event of Counterparty’s bankruptcy. 
Dealer will give notice to Counterparty of any netting or set off
effected under this provision.

(j)            Equity Rights.  Dealer
acknowledges and agrees that this Confirmation is not intended to convey to it
rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy.  For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during
Counterparty’s bankruptcy to any claim arising as a result of a breach by
Counterparty of any of its obligations under this Confirmation or the
Agreement.

(k)                           Early
Unwind.  In the event the sale
by Counterparty of the Convertible Notes is not consummated with the initial
purchasers pursuant to the Purchase Agreement for any reason by the close of
business in New York on March 16, 2007 (or such later date as agreed upon by
the parties, which in no event shall be later than March 23, 2007) (March 16,
2007 or such later date being the “Early
Unwind Date”), the 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
Dealer and Counterparty thereunder shall be cancelled and terminated and (ii)
Counterparty shall pay to Dealer, other than in cases involving a breach of the
Purchase Agreement by the initial purchasers, an amount in cash equal to the aggregate
amount of costs and expenses relating to the unwinding of Dealer’s hedging
activities in respect of the Transaction (including market losses incurred in
reselling any Shares purchased by Dealer or its affiliates in connection with
such hedging activities, unless Counterparty agrees to purchase any such Shares
at the cost at which Dealer purchased such Shares).  Following such termination, cancellation and
payment, 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 either party arising out of and to be performed
in connection with the Transaction either prior to or after the Early Unwind
Date.  Dealer and Counterparty represent
and acknowledge to the other that upon an Early Unwind and following the
payment referred to above, all obligations with respect to the Transaction
shall be deemed fully and finally discharged.

(l)            Governing Law.  THE AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE).

 15
 

9.  Arbitration.

(a)   All parties to this Confirmation are giving
up the right to sue each other in court, including the right to a trial by
jury, except as provided by the rules of the arbitration forum in which a claim
is filed.

(b)   Arbitration awards are generally final and
binding; a party’s ability to have a court reverse or modify an arbitration
award is very limited.

(c)   The ability of the parties to obtain
documents, witness statements and other discovery is generally more limited in
arbitration than in court proceedings.

(d)   The arbitrators do not have to explain the
reason(s) for their award.

(e)   The panel of arbitrators will typically
include a minority of arbitrators who were or are affiliated with the
securities industry, unless Counterparty is a member of the organization
sponsoring the arbitration facility, in which case all arbitrators may be
affiliated with the securities industry.

(f)    The rules of some arbitration forums may
impose time limits for bringing a claim in arbitration.  In some cases, a claim that is ineligible for
arbitration may be brought in court.

(g)   The rules of the arbitration forum in which
the claim is filed, and any amendments thereto, shall be incorporated into this
Confirmation.

(h)   Counterparty agrees that any and all
controversies that may arise between Counterparty and Dealer, including, but
not limited to, those arising out of or relating to the Agreement or the
Transaction hereunder, shall be determined by arbitration conducted before The
New York Stock Exchange, Inc. (“NYSE”) or NASD Dispute Resolution (“NASD-DR”),
or, if the NYSE and NASD-DR decline to hear the matter, before the American
Arbitration Association, in accordance with their arbitration rules then in
force.  The award of the arbitrator shall
be final, and judgment upon the award rendered may be entered in any court,
state or federal, having jurisdiction.

(i)    No person shall bring a putative or
certified class action to arbitration, nor seek to enforce any pre-dispute
arbitration agreement against any person who has initiated in court a putative
class action or who is a member of a putative class who has not opted out of
the class with respect to any claims encompassed by the putative class action
until: (i) the class certification is denied; (ii) the class is decertified; or
(iii) Counterparty is excluded from the class by the court.

(j)    Such forbearance to enforce an agreement to
arbitrate shall not constitute a waiver of any rights under this Confirmation
except to the extent stated herein.

 16
 

Counterparty 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 Dealer) correctly sets forth the terms of the agreement between
Dealer and Counterparty 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 Equity Derivatives Documentation Department, Facsimile No.
(212) 428-1980/83.

	
  

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN, SACHS & CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Debra Tageldein, Vice President

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and Accepted By:

  	
   

  
	
   

  	
   

  
	
  ASBURY AUTOMOTIVE GROUP, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ J. Gordon Smith

  	
   

  	
   

  
	
   

  	
  Name: J. Gordon Smith

  	
   

  	
   

  
	
   

  	
  Title:  Chief Financial Officer

  	
   

  	
   

  

 

 17Exhibit 10.3

EXECUTION COPY

Deutsche Bank 

Deutsche Bank AG, London
Branch

Winchesterhouse

1 Great Winchester St,

London EC2N 2DB

Telephone:  44 20 7545 8000

c/o Deutsche Bank AG, New
York

60 Wall Street

New York, NY 10005

Telephone: 212-250-2500

Internal Reference: 165917

	
  DATE:

  	
  March 12, 2007

  
	
   

  	
   

  
	
  TO:

  	
  Asbury Automotive Group

  
	
   

  	
  622 Third Avenue, 37th Floor

  
	
   

  	
  New York, NY 10017

  
	
  ATTENTION:

  	
  Chief Financial Officer

  
	
  TELEPHONE:

  	
  212-885-2500

  
	
  FACSIMILE:

  	
  212-297-2645

  
	
   

  	
   

  
	
  FROM:

  	
  Deutsche Bank AG London

  
	
  TELEPHONE:

  	
  + 44 20 7545 8193

  
	
  FACSIMILE:

  	
  + 44 11 3336 2009

  
	
   

  	
   

  
	
  SUBJECT:

  	
  Convertible Bond Hedge Transaction

  
	
   

  	
   

  
	
  REFERENCE NUMBER(S):

  	
  165917

  

 

The purpose of this communication (this “Confirmation”) is to set forth the terms
and conditions of the above-referenced transaction entered into on the Trade
Date specified below (the “Transaction”) between Deutsche Bank
AG acting through its London Branch  (“Dealer”) and Asbury
Automotive Group, Inc. (“Counterparty”).  This communication constitutes a “Confirmation”
as referred to in the ISDA Master Agreement specified below.

1.     This
Confirmation is subject to, and incorporates, the definitions and provisions of
the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions
and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and together with
the 2000 Definitions, the “Definitions”), in each case as
published by the International Swaps and Derivatives Association, Inc. (“ISDA”). 
In the event of any inconsistency between the 2000 Definitions and the
Equity Definitions, the

	
  Chairman of the Supervisory Board: Clemens
  Börsig

  	
   

  	
  Deutsche Bank AG is regulated by the FSA for the
  conduct of designated investment business in the UK, is a member of the
  London Stock Exchange and is a limited liability company incorporated in the
  Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am
  Main; Branch Registration No. in England and Wales BR000005, Registered
  address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.

  
	
  Board of Managing Directors: Hermann-Josef Lamberti,
  Josef Ackermann, Tessen von Heydebreck, Anthony DiIorio, Hugo Banziger

  

 

Equity Definitions will govern. 
Certain defined terms used herein have the meanings assigned to them in
the Indenture to be dated as of March 16, 2007 between Counterparty and  The Bank of New York, as trustee (the “Indenture”) relating to the USD100,000,000 principal amount
of 3.00% convertible notes due 2012 (the “Convertible Notes”).  In the event of any inconsistency between the
terms defined in the Indenture and this Confirmation, this Confirmation shall
govern.  For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the
Indenture most recently reviewed by the parties at the time of execution of
this Confirmation.  If any relevant
sections of the Indenture are changed, added or renumbered prior to execution
of the Indenture, the parties will amend this Confirmation in good faith to
preserve the economic intent of the parties, as evidenced by such draft of the
Indenture.  The Transaction is subject to
early unwind if the closing of the Convertible Notes is not consummated for any
reason, as set forth below in Section 8(k).

Each party is hereby advised, and each such party acknowledges, that
the other party has engaged in, or refrained from engaging in, substantial
financial transactions and has taken other material actions in reliance upon
the parties’ entry into the Transaction to which this Confirmation relates on
the terms and conditions set forth below.

This Confirmation evidences a complete and binding
agreement between Dealer and Counterparty as to the terms of the Transaction to
which this Confirmation relates.  This
Confirmation shall be subject to an agreement (the “Agreement”)
in the form of the 1992 ISDA Master Agreement as if Dealer and Counterparty had
executed an agreement in such form on the date hereof (but without any Schedule
except for (i) the election of Loss and Second Method in respect of Payments on
Early Termination and US Dollars (“USD”) as the
Termination Currency, and (ii) the replacement of the word “third” in the last
line of Section 5(a)(i) of the Agreement with the word “first”, and (iii) the
election that the “Cross Default” provisions of Section 5(a)(vi) of the
Agreement shall apply to Counterparty with a “Threshold Amount” of USD15
million).

All provisions contained in, or incorporated by
reference to, the Agreement will govern this Confirmation except as expressly
modified herein.  In the event of any
inconsistency between this Confirmation and either the Definitions or the
Agreement, this Confirmation shall govern.

The Transaction hereunder shall be the sole
Transaction under the Agreement.  If
there exists any ISDA Master Agreement between Dealer and Counterparty or any
confirmation or other agreement between Dealer and Counterparty pursuant to
which an ISDA Master Agreement is deemed to exist between Dealer and
Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which
Dealer and Counterparty are parties, the Transaction shall not be considered
Transactions under, or otherwise governed by, such existing or deemed ISDA
Master Agreement.

DEUTSCHE BANK AG IS NOT
REGISTERED AS A BROKER DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.  DEUTSCHE BANK AG, NEW YORK
BRANCH HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS NO
OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH
RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION.  DEUTSCHE BANK AG, LONDON BRANCH IS NOT A
MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

2.     The
Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions.  The terms of the particular
Transaction to which this Confirmation relates are as follows:

	
  General Terms:

  	
   

  
	
   

  	
   

  
	
  Trade Date:

  	
  March 12, 2007

  
	
   

  	
   

  
	
  Effective Date:

  	
  March 16, 2007

  
	
   

  	
   

  
	
  Option Style:

  	
  Modified American, as described under “Procedures
  for Exercise” below.

  

 

 2
 

 

	
  Option Type:

  	
  Call

  
	
   

  	
   

  
	
  Seller:

  	
  Dealer

  
	
   

  	
   

  
	
  Buyer:

  	
  Counterparty

  
	
   

  	
   

  
	
  Shares:

  	
  The Common Stock of Counterparty, par value USD0.01
  per share (Ticker Symbol: “ABG”).

  
	
   

  	
   

  
	
  Number of
  Options:

  	
  The number of Convertible Notes in denominations of
  USD1,000 principal amount issued by Counterparty on the closing date for the
  initial issuance of the Convertible Notes; provided
  that the Number of Options shall be automatically increased as of the date of
  exercise by the representative of the Initial Purchasers (as defined in the
  Purchase Agreement) of their option pursuant to Section 2 of the Purchase
  Agreement dated as of March 12, 2007 between Counterparty and Dealer, as representative
  of the Initial Purchasers party thereto (the “Purchase Agreement”), by the number of Convertible Notes in
  denominations of USD1,000 principal amount issued pursuant to such exercise (such
  Convertible Notes, the “Additional Convertible
  Notes”).  For the avoidance
  of doubt, the Number of Options outstanding shall be reduced by each exercise
  of Options hereunder.

  
	
   

  	
   

  
	
  Option Entitlement:

  	
  As of any date, a
  number of Shares per Option equal to the Conversion Rate (as defined in the
  Indenture, but without regard to any adjustments to the Conversion Rate
  pursuant to Sections 13.01(e) or 13.04(f) of the Indenture).

  
	
   

  	
   

  
	
  Strike Price:

  	
  As of any date, an amount in USD, rounded to the
  nearest cent (with 0.5 cents being rounded upwards), equal to USD1,000 divided by the Option Entitlement.

  
	
   

  	
   

  
	
  Number of
  Shares:

  	
  The product of the Number of Options, the Option
  Entitlement and the Applicable Percentage.

  
	
   

  	
   

  
	
  Applicable
  Percentage:

  	
  60%

  
	
   

  	
   

  
	
  Premium:

  	
  USD10,074,000 (Premium per Option USD100.74); provided that if the Number of Options
  is increased pursuant to the proviso to the definition of “Number of Options”
  above, an additional Premium equal to the product of the number of Options by
  which the Number of Options is so increased and the Premium per Option shall
  be paid on the Additional Premium Payment Date.

  
	
   

  	
   

  
	
  Premium Payment
  Date:

  	
  The Effective Date

  
	
   

  	
   

  
	
  Additional
  Premium Payment Date:

  	
  The closing date for the purchase and sale of the
  Additional Convertible Notes.

  
	
   

  	
   

  
	
  Exchange:

  	
  New York Stock Exchange

  
	
   

  	
   

  
	
  Related
  Exchange:

  	
  All Exchanges

  
	
   

  	
   

  
	
  Procedures for
  Exercise:

  	
   

  
	
   

  	
   

  
	
  Exercise Date:

  	
  Each Conversion Date.

  
	
   

  	
   

  
	
  Conversion Date:

  	
  Each “Conversion Date”, as defined in the Indenture occurring
  during the Exercise Period for Convertible 

  

 

 3
 

 

	
  

  	
  Notes (such Convertible Notes, the “Relevant Convertible Notes” for such
  Conversion Date).

  
	
   

  	
   

  
	
  Exercise Period:

  	
  The period from and excluding the Trade Date to and
  including the Expiration Date.

  
	
   

  	
   

  
	
  Expiration Date:

  	
  The earlier of (i) the last day on which any
  Convertible Notes remain outstanding and (ii) the third Scheduled Trading Day
  immediately preceding September 15, 2012 (the “Maturity
  Date”)

  
	
   

  	
   

  
	
  Scheduled
  Trading Day:

  	
  As defined in the Indenture.

  
	
   

  	
   

  
	
  VWAP Trading
  Day:

  	
  As defined in the Indenture.

  
	
   

  	
   

  
	
  Required
  Exercise on

  	
   

  
	
  Conversion
  Dates:

  	
  On each Conversion Date, a number of Options equal
  to the number of Relevant Convertible Notes for such Conversion Date in
  denominations of USD1,000 principal amount shall be automatically exercised,
  subject to “Notice of Exercise” below.

  
	
   

  	
   

  
	
  Notice of
  Exercise:

  	
  Notwithstanding anything to the contrary in the Equity
  Definitions, Dealer shall have no obligation to make any payment or delivery
  in respect of any exercise of Options hereunder unless Counterparty notifies
  Dealer in writing prior to 5:00 P.M., New York City time, on the Scheduled
  Trading Day prior to the first Exchange Business Day of the “Observation
  Period”, as defined in the Indenture, relating to the Relevant Convertible
  Notes converted on the relevant Conversion Date on which such Exercise Date
  occurs (the “Notice Deadline”) of (i) the
  number of Options being exercised on such Exercise Date, (ii) the scheduled
  settlement date under the Indenture for the Relevant Convertible Notes
  converted on the relevant Conversion Date and (iii) the first Scheduled
  Trading Day of the relevant Observation Period.  Notwithstanding the foregoing, (x) in
  respect of Options with an Exercise Date occurring during the period from and
  including the 35th Scheduled Trading Day prior to the Maturity
  Date to and including the Expiration Date (the “Final
  Conversion Period”), the Notice Deadline shall be 12:00 noon, New
  York City time on the Scheduled Trading Day immediately following the
  Expiration Date and the content of such notice shall be as set forth in
  clauses (i) and (ii) above as they relate to all Exercise Dates occurring
  during the Final Conversion Period and (y) such notice (and the related
  automatic exercise of Options) shall be effective if given after the Notice
  Deadline but prior to 5:00 P.M., New York City time, on the fifth Scheduled
  Trading Day of such Observation Period, in which event the Calculation Agent shall
  have the right to adjust the Delivery Obligation (as defined below) as
  appropriate to reflect the additional costs (including, but not limited to,
  hedging mismatches and market losses) and expenses incurred by Dealer or any
  of its affiliates in connection with hedging activities (including the unwinding
  of any hedge position) as a result of Dealer not 

  

 

 4
 

 

	
  

  	
  having received such notice prior to the Notice
  Deadline.  For the avoidance of doubt,
  if Counterparty fails to give such notice when due in respect of any exercise
  of Options hereunder, Dealer’s obligations to make any payment or delivery in
  respect of such exercise shall be permanently extinguished, and late notice
  shall not cure such failure.

  
	
   

  	
   

  
	
  Dealer’s
  Telephone Number

  	
   

  
	
  and Telex and/or
  Facsimile Number

  	
   

  
	
  and Contact
  Details for purpose of

  	
   

  
	
  Giving Notice:

  	
  To:

  	
  Deutsche Bank AG, London Branch

  
	
   

  	
   

  	
  c/o Deutsche
  Bank AG, New York

  
	
   

  	
   

  	
  60 Wall Street

  
	
   

  	
   

  	
  New York, New
  York 10005

  
	
   

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  Documentation Department

  
	
   

  	
   

  	
   

  
	
  

  	
  Telephone:

  	
  + 44 20 7545 8193

  
	
   

  	
  Facsimile:

  	
  + 44 11 3336 2009

  
	
   

  	
   

  	
   

  
	
  Settlement
  Terms:

  	
   

  
	
   

  	
   

  
	
  Settlement Date:

  	
  For any Exercise Date, the settlement date for the
  Shares to be delivered in respect of the Relevant Convertible Notes for the
  relevant Conversion Date under the terms of the Indenture.

  
	
   

  	
   

  
	
  Delivery
  Obligation:

  	
  In lieu of the obligations set forth in Sections 8.1
  and 9.1 of the Equity Definitions, and subject to “Notice of Exercise” above,
  in respect of any Exercise Date, Dealer will deliver to Counterparty, on the
  related Settlement Date, a number of Shares equal to the product of the
  Applicable Percentage and the aggregate number of Shares, if any (and cash in
  lieu of fractional Shares, if any) that Counterparty is obligated to deliver to
  the holder(s) of the Relevant Convertible Notes for the corresponding
  Conversion Date pursuant to Section 13.02 of the Indenture (such Shares, the
  “Convertible Obligation”); provided that such obligation shall be determined
  excluding any Shares (and cash in lieu of fractional Shares) that
  Counterparty is obligated to deliver to holder(s) of the Relevant Convertible
  Notes as a direct or indirect result of any adjustments to the Conversion
  Rate pursuant to Sections 13.01(e) or 13.04(f) of the Indenture and any
  interest payment that the Counterparty is obligated to deliver to holder(s)
  of the Relevant Convertible Note. For the avoidance of doubt, in respect of
  any Exercise Date, if the “Daily Conversion Value”, as defined in the
  Indenture, for each VWAP Trading Day during the relevant Observation Period
  is less than or equal to USD33.33 in the case of the first 20 VWAP Trading
  Days and USD33.34 in the case of the last 10 VWAP Trading Days, as the case
  may be, for each VWAP Trading Day in the Observation Period, Dealer will have
  no delivery obligation hereunder in respect of such Exercise Date.

  
				

 

 5
 

 

	
  Notice of Delivery
  Obligation:

  	
  No later than the Exchange Business Day immediately
  following the last day of the Observation Period, Counterparty shall give
  Dealer notice of the final number of Shares and/or the amount of cash
  comprising the Convertible Obligation; provided
  that, with respect to any Exercise Date occurring during the Final Conversion
  Period, Counterparty may provide Dealer with a single notice of the aggregate
  number of Shares and/or the amount of cash comprising the Convertible
  Obligations for all such Exercise Dates (it being understood, for the
  avoidance of doubt, that the requirement of Counterparty to deliver such
  notice shall not limit Counterparty’s obligations with respect to Notice of
  Exercise, as set forth above, in any way).

  
	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
  To the extent Dealer is obligated to deliver Shares
  hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12
  of the Equity Definitions will be applicable as if “Physical Settlement”
  applied to the Transaction; provided
  that the Representation and Agreement contained in Section 9.11 of the Equity
  Definitions shall be modified by excluding any representations therein
  relating to restrictions, obligations, limitations or requirements under
  applicable securities laws that exist as a result of the fact that
  Counterparty is the issuer of the Shares.

  
	
   

  	
   

  
	
  Restricted
  Certificated Shares:

  	
  Notwithstanding anything to the contrary in the
  Equity Definitions, Dealer may, in whole or in part, deliver Shares in
  certificated form representing the Number of Shares to be Delivered to
  Counterparty in lieu of delivery through the Clearance System.

  
	
   

  	
   

  
	
  Adjustments:

  	
   

  
	
   

  	
   

  
	
  Method of
  Adjustment:

  	
  Notwithstanding Section 11.2 of the Equity
  Definitions, upon the occurrence of any event or condition set forth in
  Sections 13.04(a), (b), (c), (d) and (e) of the Indenture, the Calculation
  Agent shall make the corresponding adjustment in respect of any one or more
  of the Number of Options, the Option Entitlement and any other variable
  relevant to the exercise, settlement or payment of the Transaction, to the
  extent an analogous adjustment is made under the Indenture. Promptly following
  the occurrence of any Adjustment Event, as defined in the Indenture,
  Counterparty shall notify the Calculation Agent of such Adjustment Event; and
  once the adjustments to be made to the terms of the Indenture and the
  Convertible Notes in respect of such Adjustment Event have been determined,
  Counterparty shall promptly notify the Calculation Agent in writing of the
  details of such adjustments. The Calculation Agent shall, promptly after
  receiving such notice, make any corresponding adjustments to the terms of the
  Transaction and notify Dealer and Counterparty thereof. In addition, at least
  10 Scheduled Trading Days prior to the ex-dividend date for any cash dividend
  or distribution that would constitute the occurrence of an Adjustment Event
  set forth in Section 13.04(d)

  

 

 6
 

 

	
  

  	
  of the Indenture and not earlier than the public
  announcement by Counterparty of such dividend or distribution, Counterparty
  shall notify the Calculation Agent of such Adjustment Event and the ex-dividend
  date for such cash dividend or distribution.

  
	
   

  	
   

  
	
  Extraordinary
  Events:

  	
   

  
	
   

  	
   

  
	
  Merger Events:

  	
  Notwithstanding Section 12.1(b) of the Equity
  Definitions, a “Merger Event” means the occurrence of any event or condition
  set forth in Section 13.10 of the Indenture.

  
	
   

  	
   

  
	
  Consequences of
  Merger Events:

  	
  Notwithstanding Section 12.2 of the Equity
  Definitions, upon the occurrence of a Merger Event, the Calculation Agent
  shall make the corresponding adjustment in respect of any adjustment under
  the Indenture to any one or more of the nature of the Shares, the Number of
  Options, the Option Entitlement and any other variable relevant to the
  exercise, settlement or payment for the Transaction, to the extent an
  analogous adjustment is made under the Indenture in respect of such Merger
  Event; provided  that
  such adjustment shall be made without regard to any
  adjustment to the Conversion Rate for the issuance of additional shares as
  set forth in Section 13.04(f) of the Indenture.

  
	
   

  	
   

  
	
  Notice of Merger
  Consideration:

  	
  Upon the occurrence of a Merger Event that causes
  the Shares to be converted into the right to receive more than a single type
  of consideration (determined based in part upon any form of stockholder
  election), Counterparty shall reasonably promptly (but in any event prior to the
  Merger Date) notify the Calculation Agent of the weighted average of the
  types and amounts of consideration to be received by the holders of Shares
  entitled to receive cash, securities or other property or assets with respect
  to or in exchange for such Shares in any Merger Event who affirmatively make
  such an election.

  
	
   

  	
   

  
	
  Nationalization,
  Insolvency

  	
   

  
	
  or Delisting:

  	
  Cancellation and Payment (Calculation Agent
  Determination); provided that
  in addition to the provisions of Section 12.6(a)(iii) of the Equity
  Definitions, it will also constitute a Delisting if the Exchange is located
  in the United States and the Shares are not immediately re-listed, re-traded
  or re-quoted on any of the New York Stock Exchange, the American Stock
  Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or
  their respective successors); if the Shares are immediately re-listed,
  re-traded or re-quoted on any such exchange or quotation system, such
  exchange or quotation system shall thereafter be deemed to be the Exchange.
  For the avoidance of doubt, the occurrence of any event that is a Merger
  Event and would also constitute a Delisting shall first have the consequences
  specified for the relevant

  

 

 7
 

 

	
  

  	
  Merger Event and following that have the consequences
  specified for the relevant Delisting.

  
	
   

  	
   

  
	
  Additional Disruption
  Events:

  	
   

  
	
   

  	
   

  
	
  (a)

  	
  Change in Law:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  Failure to Deliver:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (c)

  	
  Insolvency Filing:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (d)

  	
  Hedging Disruption:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  (e)

  	
  Increased Cost of Hedging:

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
  For all applicable Additional Disruption Events,
  Dealer

  
	
   

  	
   

  
	
  Determining
  Party:

  	
  For all applicable Additional Disruption Events,
  Dealer

  
	
   

  	
   

  
	
  Non-Reliance:

  	
  Applicable

  
	
   

  	
   

  
	
  Agreements and
  Acknowledgments

  	
   

  
	
  Regarding
  Hedging Activities:

  	
  Applicable

  
	
   

  	
   

  
	
  Additional
  Acknowledgments:

  	
  Applicable

  
	
   

  	
   

  
	
  3.

  	
  Calculation Agent:

  	
  Dealer. The Calculation Agent shall, upon request by
  either party, provide a written explanation of any calculation made by it including,
  where applicable, a description of the methodology and data applied.

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Account Details:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dealer Payment
  Instructions:

  	
   

  
	
   

  	
   

  
	
  Bank of New York

  ABA 021-000-018

  Deutsche Bank
  AG, New York

  GLA 111-569

  A/C DBO

  	
   

  
	
   

  	
   

  
	
   

  	
  Counterparty Payment Instructions:

  	
   

  
	
   

  	
   

  	
   

  
	
  To be provided
  by Counterparty.

  	
   

  
	
   

  	
   

  
	
  5.

  	
  Offices:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Office of Dealer for the Transaction is:

  
	
   

  	
   

  	
   

  
	
   

  	
  Winchesterhouse, 1
  Great Winchester Street, London EC2N 2DB

  
	
   

  	
   

  	
   

  
	
   

  	
  The Office of Counterparty for the Transaction is:

  
	
   

  	
   

  	
   

  
	
   

  	
  622 Third Avenue, 37th Floor, New York, New York 10017

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Notices: For purposes of this
  Confirmation:

  
	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Address for notices or communications to
  Counterparty:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:

  	
  Asbury Automotive Group

  
	
   

  	
   

  	
   

  	
  622 Third Avenue, 37th Floor

  
	
   

  	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
  Attn:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
  Telephone:

  	
  212-885-2500

  
	
   

  	
   

  	
  Facsimile:

  	
  212-297-2645

  
						

 

 8
 

 

	
  

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  General Counsel

  
	
  

  	
   

  	
  Facsimile:

  	
  212-297-2653

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Address for notices or communications to Dealer:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:

  	
  Deutsche Bank AG, London Branch

  
	
   

  	
   

  	
   

  	
  c/o Deutsche
  Bank AG, New York

  
	
   

  	
   

  	
   

  	
  60 Wall Street

  
	
   

  	
   

  	
   

  	
  New York, New
  York 10005

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:

  	
  Documentation Department

  
	
   

  	
   

  	
  Telephone:

  	
  + 44 20 7545 8193

  
	
   

  	
   

  	
  Facsimile:

  	
  + 44 11 3336 2009

  

 

7.     Representations,
Warranties and Agreements:

(a)           In addition to the
representations and warranties in the Agreement and those contained elsewhere
herein, Counterparty represents and warrants to and for the benefit of, and
agrees with, Dealer as follows:

(i)            On the Trade Date,
(A) none of Counterparty and its officers and directors is aware of any
material nonpublic information regarding Counterparty or the Shares and (B) all
reports and other documents filed by Counterparty with the Securities and
Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), when considered as a
whole (with the more recent such reports and documents deemed to supercede inconsistent
statements contained in any earlier such reports and documents), do not contain
any untrue statement of a material fact or any omission of a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances in which they were made, not misleading.

(ii)           (A) On the Trade
Date, the Shares or securities that are convertible into, or exchangeable or
exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) as a result of activity by Counterparty or
its affiliates or as a result of activity known to Counterparty and (B)
Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M,
until the second Exchange Business Day immediately following the Trade Date.

(iii)          On the Trade Date,
neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as
defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”))
shall directly or indirectly (including, without limitation, by means of any
cash-settled or other derivative instrument) purchase, offer to purchase, place
any bid or limit order that would effect a purchase of, or commence any tender
offer relating to, any Shares (or an equivalent interest, including a unit of
beneficial interest in a trust or limited partnership or a depository share) or
any security convertible into or exchangeable or exercisable for Shares, except
through Goldman, Sachs & Co.

(iv)          Counterparty
acknowledges that neither Dealer nor any of its affiliates is making any
representations or warranties with respect to the treatment of the Transaction
under FASB Statements 128, 133 (as amended), 149 or 150, EITF Issue Nos. 00-19,
01-06 or 03-06 (or any successor issue statements) or under FASB’s Liabilities
& Equity Project.

(v)           Without limiting the
generality of Section 3(a)(iii) of the Agreement, the Transaction will not
violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

(vi)          Prior to the Trade
Date, Counterparty shall deliver to Dealer a resolution of Counterparty’s board
of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.

(vii)         Counterparty is not
entering into this Confirmation to create actual or apparent trading activity
in the Shares (or any security convertible into or exchangeable for Shares) or
to raise or

 9
 

depress or otherwise manipulate the price of the
Shares (or any security convertible into or exchangeable for Shares) or
otherwise in violation of the Exchange Act.

(viii)        Counterparty is not,
and after giving effect to the transactions contemplated hereby will not be,
required to register as, an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

(ix)           On each of the
Trade Date, and the Premium Payment Date and the Additional Premium Payment
Date, if any, Counterparty is not “insolvent” (as such term is defined under
Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States
Code) (the “Bankruptcy Code”)) and
Counterparty would be able to purchase the Shares hereunder in compliance with
the laws of the jurisdiction of Counterparty’s incorporation.

(x)            The representations
and warranties of Counterparty set forth in Section 3 of the Agreement and
Section 1 of the Purchase Agreement are true and correct and are hereby deemed
to be repeated to Dealer as if set forth herein.

(b)           Each of Dealer and
Counterparty agrees and represents that it is an “eligible contract participant”
as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c)           Each of Dealer and
Counterparty acknowledges that the offer and sale of the Transaction to it is
intended to be exempt from registration under the Securities Act of 1933, as
amended (the “Securities Act”), by virtue of
Section 4(2) thereof.  Accordingly,
Counterparty represents and warrants to Dealer that (i) it has the financial
ability to bear the economic risk of its investment in the Transaction and is
able to bear a total loss of its investment and its investments in and
liabilities in respect of the Transaction, which it understands are not readily
marketable, are not disproportionate to its net worth, and it is able to bear
any loss in connection with the Transaction, including the loss of its entire
investment in the Transaction, (ii) it is an “accredited investor” as that term
is defined in Regulation D as promulgated under the Securities Act, (iii) it is
entering into the Transaction for its own account, (iv) the assignment,
transfer or other disposition of the Transaction has not been and will not be
registered under the Securities Act and is restricted under this Confirmation,
the Securities Act and state securities laws, and (v) its financial condition
is such that it has no need for liquidity with respect to its investment in the
Transaction and no need to dispose of any portion thereof to satisfy any
existing or contemplated undertaking or indebtedness and is capable of
assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the terms,
conditions and risks of the Transaction.

(d)           Each of Dealer and Counterparty
agrees and acknowledges (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 Dealer 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.

(e)           Each party acknowledges and agrees to
be bound by the Conduct Rules of the National Association of Securities
Dealers, Inc. applicable to transactions in options, and further agrees not to
violate the position and exercise limits set forth therein.

(f)            Counterparty shall deliver to Dealer
an opinion of counsel, dated as of the Trade Date and reasonably acceptable to
Dealer in form and substance, with respect to the matters set forth in Section
3(a) of the Agreement.

8.  Other Provisions:

(a)           Right to Extend.  Dealer may postpone any Exercise Date or any
other date of valuation or delivery by Dealer, with respect to some or all of
the relevant Options (in which event the Calculation Agent shall make
appropriate adjustments to the Delivery Obligation), if Dealer determines, in
its reasonable discretion, that such extension is reasonably necessary or
appropriate to preserve Dealer’s hedging or hedge

 10
 

unwind
activity hereunder in light of existing liquidity conditions in the cash market
or the stock borrow market or to enable Dealer to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a
manner that would, if Dealer were Counterparty or an affiliated purchaser of
Counterparty, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures
applicable to Dealer.

(b)           Additional Termination Events.  The occurrence of (i) an event of default
with respect to Counterparty under the terms of the Convertible Notes as set
forth in Section 6.01 of the Indenture, or (ii) an Amendment Event shall be an
Additional Termination Event with respect to which the Transaction is the sole
Affected Transaction and Counterparty is the sole Affected Party, and Dealer
shall be the party entitled to designate an Early Termination Amount pursuant
to Section 6(b) of the Agreement and to determine the Early Termination Amount
pursuant to Section 6(e)(ii)(1) of the Agreement.

“Amendment
Event” means that Counterparty amends, modifies, supplements or
receives a waiver in respect of any term of the Indenture or the Convertible
Notes governing the principal amount, coupon, maturity, repurchase obligation
of Counterparty, redemption right of Counterparty, any term relating to
conversion of the Convertible Notes (including changes to the conversion price,
conversion settlement dates or conversion conditions), or any term that would
require consent of the holders of not less than 100% of the principal amount of
the Convertible Notes to amend, in each case without the prior consent of Dealer,
such consent not to be unreasonably withheld.

(c)           Alternative Calculations and Payment on Early Termination and on
Certain Extraordinary Events. 
If, subject to Section 8(i) below, Dealer shall owe Counterparty any
amount pursuant to Section 12.2 of the Equity Definitions and “Consequences of
Merger Events” above, or Sections 12.3, 12.6, 12.7 or 12.9 of the Equity
Definitions (except in the event of an Extraordinary Event, in each case, in
which the consideration or proceeds to be paid to holders of Shares consists
solely of cash) or pursuant to Section 6(d)(ii) of the Agreement (except in the
event of an Event of Default in which Counterparty is the Defaulting Party or a
Termination Event in which Counterparty is the Affected Party, that resulted
from an event or events within Counterparty’s control) (a “Payment
Obligation”), Counterparty shall have the right, in its sole
discretion, to require Dealer to satisfy any such Payment Obligation by the
Share Termination Alternative (as defined below) by giving irrevocable
telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, between the hours of 9:00 A.M. and 4:00 P.M., New York City time, on the
Merger Date, Announcement Date or Early Termination Date, as applicable (“Notice of Share Termination”).  Upon such Notice of Share Termination, the
following provisions shall apply on the Scheduled Trading Day immediately
following the Merger Date, Announcement Date or Early Termination Date, as
applicable:

	
  Share Termination Alternative:

  	
  Applicable and means that Dealer shall deliver to
  Counterparty the Share Termination Delivery Property on the date on which the
  Payment Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of
  the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable
  (the “Share Termination Payment Date”), in
  satisfaction of the Payment Obligation. 
  

  
	
   

  	
   

  
	
  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 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 Dealer and Counterparty at the time of
  notification of the Payment Obligation.

  

 

 11
 

 

	
  Share Termination Delivery Unit:

  	
  In the case of a Termination Event, Event of Default
  or Delisting, one Share or, in the case of an Insolvency, Nationalization or
  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 Insolvency, Nationalization or Merger Event. If
  such Insolvency, Nationalization or 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:

  	
  Applicable

  
	
   

  	
   

  
	
  Other applicable provisions:

  	
  If Share Termination Alternative is applicable, the
  provisions of Sections 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity
  Definitions will be applicable as if “Physical Settlement” applied to the
  Transaction, except that all references to “Shares” shall be read as
  references to “Share Termination Delivery Units”; and provided that the Representation and
  Agreement contained in Section 9.11 of the Equity Definitions shall be
  modified by excluding any representations therein relating to restrictions,
  obligations, limitations or requirements under applicable securities laws as
  a result of the fact that Counterparty is the issuer of any Share Termination
  Delivery Units (or any part thereof).  

  

 

(d)           Disposition of Hedge Shares. 
Counterparty hereby agrees that if, in
the good faith reasonable judgment of Dealer, the Shares (the “Hedge Shares”) acquired by Dealer for the
purpose of hedging its obligations pursuant to the Transaction cannot be sold
in the U.S. public market by Dealer without registration under the Securities
Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell the Hedge Shares in a
registered offering, make available to Dealer an effective registration
statement under the Securities Act to cover the resale of such Hedge Shares and
(A) enter into an agreement, in form and substance satisfactory to Dealer,
substantially in the form of an underwriting agreement for a registered
offering, (B) provide
accountant’s “comfort” letters in customary form for registered offerings of equity
securities, (C) provide disclosure opinions of nationally recognized outside
counsel to Counterparty reasonably acceptable to Dealer, (D) provide other
customary opinions, certificates and closing documents customary in form for
registered offerings of equity securities and (E) afford Dealer a reasonable
opportunity to conduct a “due diligence” investigation with respect to
Counterparty customary in scope for underwritten offerings of equity securities;
provided, however, that if Dealer, in
its reasonable discretion, is not satisfied with access to due diligence
materials, the results of its due diligence investigation, or the procedures
and documentation for the registered offering referred to above, then clause
(ii) or clause (iii) of this Section 8(d) shall apply at the election of
Counterparty; (ii) in order to allow Dealer
to sell the Hedge Shares in a private placement, enter into a private placement
agreement substantially similar to private placement purchase agreements
customary for private placements of equity securities, in form and substance
satisfactory to Dealer, including customary representations, covenants, blue
sky and other governmental filings and/or registrations, indemnities to Dealer,
due diligence rights (for Dealer or any designated buyer of the Hedge Shares
from Dealer), opinions and certificates
and such other documentation as is customary for private placements agreements,
all reasonably acceptable to Dealer (in which case, the Calculation Agent shall
make any adjustments to the terms of the Transaction that are necessary, in its
reasonable judgment, to compensate Dealer
for any discount from the public market price of the Shares incurred on the
sale of Hedge Shares in a private placement); or (iii) purchase the Hedge
Shares from Dealer at the VWAP Price on
such Exchange Business Days, and in the amounts, requested by Dealer. 
“VWAP Price” means, on any
Exchange Business Day, the per Share volume-weighted average price as displayed
under the heading “Bloomberg VWAP” on Bloomberg page ABG.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 Exchange Business Day (or if such
volume-weighted average price is unavailable or manifestly incorrect, the
market value of one Share on such Exchange Business Day, as determined by the
Calculation Agent using a volume-weighted method).

(e)           Repurchase Notices. 
Counterparty shall, on any day on which Counterparty effects any
repurchase of Shares, promptly give Dealer a written notice of such repurchase
(a “Repurchase Notice”) on such day if,
following such repurchase, the Notice Percentage as determined on such day is
(i) greater than

 12
 

6.0% and (ii) greater by
0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater
than the Notice Percentage as of the date hereof).  The “Notice Percentage”
as of any day is the fraction, expressed as a percentage, the numerator of
which is the Number of Shares and the denominator of which is the number of
Shares outstanding on such day.  In the
event that Counterparty fails to provide Dealer with a Repurchase Notice on the
day and in the manner specified in this Section 8(e) then Counterparty agrees
to indemnify and hold harmless Dealer and its
directors, officers, employees, agents and controlling persons (Dealer and each
such person being an “Indemnified Party”)
from and against any and all losses, claims, damages and liabilities (or
actions in respect thereof), joint or several, to which such Indemnified Party
may become subject under applicable securities laws, including without
limitation, Section 16 of the Exchange Act, relating to or arising out of such
failure.  If for any reason the foregoing
indemnification is unavailable to any Indemnified Party or insufficient to hold
harmless any Indemnified Party, then Counterparty shall contribute, to the
maximum extent permitted by law, to the amount paid or payable by the
Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any
Indemnified Party for all expenses (including reasonable counsel fees and
expenses) as they are incurred (after notice to Counterparty) in connection
with the investigation of, preparation for or defense or settlement of any
pending or threatened claim or any action, suit or proceeding arising
therefrom, whether or not such Indemnified Party is a party thereto and whether
or not such claim, action, suit or proceeding is initiated or brought by or on
behalf of Counterparty.  This indemnity
shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant
to this Confirmation or the Agreement shall inure to the benefit of any
permitted assignee of Dealer.

(f)            Transfer and Assignment. 
Neither party may transfer or assign its rights and obligations
hereunder and under the Agreement, in whole or in part, without the consent of
non-transferring party; provided, that Dealer
may transfer or assign without any consent of Counterparty its rights and
obligations hereunder, in whole or in part, to (x) any of its affiliates,
so long as the obligations of such affiliate hereunder are guaranteed by
Deutsche Bank AG acting through its London Branch or (y) any third
party with a rating (or whose guarantor has a rating) for its long term,
unsecured and unsubordinated indebtedness of A or better by Standard & Poor’s
Ratings Services or its successor (“S&P”), or A2 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 Counterparty and Dealer; provided
further that at any time at which the Equity Percentage exceeds
9.0%, if Dealer, in its discretion, is unable to effect a transfer or
assignment to a third party in accordance with the provisions set forth above
after its commercially reasonable efforts on pricing terms reasonably acceptable
to Dealer such that the Equity Percentage is reduced to 8.5% or less, Dealer
may designate any Scheduled Trading Day as an Early Termination Date with
respect to a portion (the “Terminated Portion”)
of the Transaction, such that the Equity Percentage following such partial
termination will be equal to or less than 8.5%. 
In the event that Dealer so designates an Early Termination Date with
respect to a portion of the Transaction, a payment or delivery shall be made
pursuant to Section 6 of the Agreement and Section 8(c) of this Confirmation as
if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Terminated Portion of the
Transaction, (ii) Counterparty shall be the sole Affected Party with respect to
such partial termination and (iii) such portion of the Transaction shall be the
only Terminated Transaction.  The “Equity Percentage” as of any day is the fraction, expressed
as a percentage, (A) the numerator of which is the  number of Shares “beneficially owned” (within
the meaning of Section 13 of the Exchange Act) on such day by Dealer, any of
its affiliates subject to aggregation with Dealer for the purposes of the “beneficial
ownership” test under Section 13 of the Exchange Act and all persons who may
form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act)
with Dealer with respect to “beneficial ownership” of any Shares, including, in
each case, without limitation, any Shares so owned as a hedge of the
Transaction or a related transaction and Shares the “beneficial ownership” of
which Dealer or Hedging Party has the right to acquire pursuant to a
transaction related to the Transaction, and (B) the denominator of which is the
number of Shares outstanding on such day. 
Counterparty may transfer or assign its rights and obligations hereunder
and under the Agreement, in whole or in part, to any party with the consent of
Dealer, such consent not to be unreasonably withheld.

(g)           Staggered Settlement. If the Staggered
Settlement Equity Percentage as of any Exchange Business Day during any
Observation Period is greater than 4.5%, Dealer may, by notice to Counterparty prior to the related Settlement Date (the “Nominal Settlement Date”), elect to deliver
the Shares on two or more dates (each, a “Staggered
Settlement Date”) or at two or more times on the Nominal Settlement
Date as

 13
 

follows:

(i)            in
such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement
Date, but not prior to the beginning of the related Observation Period) or
delivery times and how it will allocate the Shares it is required to deliver
under “Delivery Obligation” (above) among the Staggered Settlement Dates or
delivery times; and

(ii)           the
aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number
of Shares that Dealer would otherwise be required to deliver on such Nominal
Settlement Date.

The “Staggered
Settlement Equity Percentage” as of any day is the fraction,
expressed as a percentage, (A) the numerator of which is the sum of (i) the
number of Shares “beneficially owned” (within the meaning of Section 13 of the
Exchange Act) on such day by Dealer, any of its affiliates subject to
aggregation with Dealer for the purposes of the “beneficial ownership” test
under Section 13 of the Exchange Act and all persons who may form a “group”
(within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer
with respect to “beneficial ownership” of any Shares, excluding Shares so owned
as a hedge of the Transaction, plus (ii) the Number of Shares and (B) the
denominator of which is the number of Shares outstanding on such day.

(h)           Disclosure.  Effective
from the date of commencement of discussions concerning the Transaction,
Counterparty 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 Counterparty
relating to such tax treatment and tax structure.

(i)            Netting and Set-off.

(i)            If
on any date cash would otherwise be payable or Shares or other property would
otherwise be deliverable hereunder or pursuant to the Agreement or pursuant to
any other agreement between the parties by Counterparty to Dealer and cash
would otherwise be payable or Shares or other property would otherwise be
deliverable hereunder or pursuant to the Agreement or pursuant to any other
agreement between the parties by Dealer to Counterparty and the type of
property required to be paid or delivered by each such party on such date is
the same, then, on such date, each such party’s obligation to make such payment
or delivery will be automatically satisfied and discharged and, if the
aggregate amount that would otherwise have been payable or deliverable by one
such party exceeds the aggregate amount that would otherwise have been payable
or deliverable by the other such party, replaced by an obligation of the party
by whom the larger aggregate amount would have been payable or deliverable to
pay or deliver to the other party the excess of the larger aggregate amount
over the smaller aggregate amount.

(ii)           In
addition to and without limiting any rights of set-off that a party hereto may
have as a matter of law, pursuant to contract or otherwise, upon the occurrence
of an Early Termination Date, Dealer shall have the right to terminate,
liquidate and otherwise close out the Transaction and to set off any obligation
or right that Dealer or any affiliate of Dealer may have to or against
Counterparty hereunder or under the Agreement against any right or obligation
Dealer or any of its affiliates may have against or to Counterparty, including
without limitation any right to receive a payment or delivery pursuant to any
provision of the Agreement or hereunder. 
In the case of a set-off of any obligation to release, deliver or pay
assets against any right to receive assets of the same type, such obligation
and right shall be set off in kind.  In
the case of a set-off of any obligation to release, deliver or pay assets against
any right to receive assets of any other type, the value of each of such
obligation and such right shall be determined by the Calculation Agent and the
result of such set-off shall be that the net obligor shall pay or deliver to
the other party an amount of cash or assets, at the net obligor’s option, with
a value (determined, in the case of a delivery of assets, by the Calculation
Agent) equal to that of the net obligation. 
In determining the value of any obligation to release or deliver Shares
or any right to receive Shares, the value at any time of such obligation or
right shall be determined by reference to the market value of the Shares at
such time, as determined by the Calculation Agent.  If an obligation or right is unascertained at
the time of any such set-off, the Calculation Agent may in good faith estimate

 14
 

the amount or value of
such obligation or right, in which case set-off will be effected in respect of
that estimate, and the relevant party shall account to the other party at the
time such obligation or right is ascertained.

(iii)          Notwithstanding
any provision of the Agreement (including without limitation Section 6(f)
thereof) and this Confirmation (including without limitation this Section 8(i))
or any other agreement between the parties to the contrary, (A) Counterparty
shall not net or set off its obligations under the Transaction, if any, against
its rights against Dealer under any other transaction or instrument and (B)
Dealer may net and set off any rights of Dealer against Counterparty arising
under the Transaction only against obligations of Dealer to Counterparty
arising under any transaction or instrument if such transaction or instrument
does not convey rights to Dealer senior to the claims of common stockholders in
the event of Counterparty’s bankruptcy. 
Dealer will give notice to Counterparty of any netting or set off
effected under this provision.

(j)            Equity Rights.  Dealer
acknowledges and agrees that this Confirmation is not intended to convey to it
rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy.  For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during
Counterparty’s bankruptcy to any claim arising as a result of a breach by
Counterparty of any of its obligations under this Confirmation or the
Agreement.

(k)                           Early
Unwind.  In the event the sale
by Counterparty of the Convertible Notes is not consummated with the initial
purchasers pursuant to the Purchase Agreement for any reason by the close of
business in New York on March 16, 2007 (or such later date as agreed upon by
the parties, which in no event shall be later than March 23, 2007) (March 16,
2007 or such later date being the “Early
Unwind Date”), the 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
Dealer and Counterparty thereunder shall be cancelled and terminated and (ii)
Counterparty shall pay to Dealer, other than in cases involving a breach of the
Purchase Agreement by the initial purchasers, an amount in cash equal to the
aggregate amount of costs and expenses relating to the unwinding of Dealer’s
hedging activities in respect of the Transaction (including market losses
incurred in reselling any Shares purchased by Dealer or its affiliates in
connection with such hedging activities, unless Counterparty agrees to purchase
any such Shares at the cost at which Dealer purchased such Shares).  Following such termination, cancellation and
payment, 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 either party arising out of and to be performed
in connection with the Transaction either prior to or after the Early Unwind
Date.  Dealer and Counterparty represent
and acknowledge to the other that upon an Early Unwind and following the
payment referred to above, all obligations with respect to the Transaction
shall be deemed fully and finally discharged.

(l)            Governing Law.  THE AGREEMENT AND THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CHOICE OF LAW DOCTRINE).

(o)           Method of Delivery.  Whenever delivery of funds or other assets is
required hereunder by or to Counterparty, such delivery shall be effected
through Deutsche Bank AG, New York Branch (“DBNY”).  In addition, all notices, demands and
communications of any kind relating to the Transaction between Deutsche and
Counterparty shall be transmitted exclusively through DBNY.

9.  Arbitration.

(a)   All parties to this Confirmation are giving
up the right to sue each other in court, including the right to a trial by
jury, except as provided by the rules of the arbitration forum in which a claim
is filed.

(b)   Arbitration awards are generally final and
binding; a party’s ability to have a court reverse or modify an arbitration
award is very limited.

 15
 

(c)   The ability of the parties to obtain documents,
witness statements and other discovery is generally more limited in arbitration
than in court proceedings.

(d)   The arbitrators do not have to explain the
reason(s) for their award.

(e)   The panel of arbitrators will typically
include a minority of arbitrators who were or are affiliated with the
securities industry, unless Counterparty is a member of the organization
sponsoring the arbitration facility, in which case all arbitrators may be
affiliated with the securities industry.

(f)    The rules of some arbitration forums may
impose time limits for bringing a claim in arbitration.  In some cases, a claim that is ineligible for
arbitration may be brought in court.

(g)   The rules of the arbitration forum in which
the claim is filed, and any amendments thereto, shall be incorporated into this
Confirmation.

(h)   Counterparty agrees that any and all
controversies that may arise between Counterparty and Dealer, including, but
not limited to, those arising out of or relating to the Agreement or the
Transaction hereunder, shall be determined by arbitration conducted before The
New York Stock Exchange, Inc. (“NYSE”) or NASD Dispute Resolution (“NASD-DR”),
or, if the NYSE and NASD-DR decline to hear the matter, before the American
Arbitration Association, in accordance with their arbitration rules then in
force.  The award of the arbitrator shall
be final, and judgment upon the award rendered may be entered in any court,
state or federal, having jurisdiction.

(i)    No person shall bring a putative or
certified class action to arbitration, nor seek to enforce any pre-dispute
arbitration agreement against any person who has initiated in court a putative
class action or who is a member of a putative class who has not opted out of
the class with respect to any claims encompassed by the putative class action
until: (i) the class certification is denied; (ii) the class is decertified; or
(iii) Counterparty is excluded from the class by the court.

(j)    Such forbearance to enforce an agreement to
arbitrate shall not constitute a waiver of any rights under this Confirmation
except to the extent stated herein.

 16
 

Counterparty 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 Dealer) correctly sets forth the terms of the agreement between
Dealer and Counterparty 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 Jonathan Miller, Facsimile No. (732) 578-2650.

	
  

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG, LONDON BRANCH

  
	
   

  	
   

  
	
   

  	
  /s/ Lee Frankenfield, Managing Director

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Andrea Leung, Managing Director

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG, NEW YORK

  
	
   

  	
  acting solely as Agent in connection with this
  Transaction

  
	
   

  	
   

  
	
   

  	
  /s/ Andrew Yaeger, Director

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
  /s/ Lee Frankenfield, Managing Director

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
  Agreed and Accepted By:

  	
   

  
	
   

  	
   

  
	
  ASBURY AUTOMOTIVE GROUP, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ J. Gordon Smith

  	
   

  	
   

  
	
   

  	
  Name: J. Gordon Smith

  	
   

  
	
   

  	
  Title:   Chief
  Financial Officer

  	
   

  
				

 

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]