Document:

Exhibit 10.4

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:

  	
  Issuer Warrant 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. (“Issuer”).  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.  For purposes of the Equity Definitions, each
reference herein to a Warrant shall be deemed to be a reference to a Call
Option or an Option, as context requires.

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

2.     The Transaction is a
Warrant Transaction, which shall be considered 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, subject to Section 8(l) below

  
	
   

  	
   

  	
   

  
	
  Components:

  	
   

  	
  The Transaction will be divided into individual
  Components, each with the terms set forth in this Confirmation, and, in
  particular, with the Number of Warrants and Expiration Date set forth in this
  Confirmation. The payments and deliveries to be made upon settlement of the
  Transaction will be determined separately for each Component as if each
  Component were a separate Transaction under the Agreement.

  
	
   

  	
   

  	
   

  
	
  Warrant Style:

  	
   

  	
  American

  
	
   

  	
   

  	
   

  
	
  Warrant Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Issuer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Number of Warrants:

  	
   

  	
  For each Component, as provided in Annex A to this
  Confirmation.

  
	
   

  	
   

  	
   

  
	
  Warrant Entitlement:

  	
   

  	
  One Share per Warrant

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD45.09

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD3,104,000 (Premium per Warrant USD2.6379)

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  New York Stock Exchange

  
	
   

  	
   

  	
   

  
	
  Related Exchange:

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  As provided in Annex A to this Confirmation
  (or, if such date is not a Scheduled Trading Day, the next following
  Scheduled Trading Day that is not already an Expiration Date for another
  Component); provided

  

 

 2
 

 

	
  

  	
   

  	
  that if that date is a Disrupted Day, the Expiration
  Date for such Component shall be the first succeeding Scheduled Trading Day
  that is not a Disrupted Day and is not or is not deemed to be an Expiration
  Date in respect of any other Component of the Transaction; and provided further that if the Expiration
  Date has not occurred pursuant to the preceding proviso as of the Final
  Disruption Date, the Final Disruption Date shall be the Expiration Date (irrespective
  of whether such date is an Expiration Date occurring on the Final Disruption
  Date in respect of any other Component for the Transaction) and the
  Calculation Agent shall determine the VWAP Price of the Shares as of the
  Valuation Time on such day.
  Notwithstanding the foregoing and anything to the contrary in the Equity
  Definitions, if a Market Disruption Event occurs on any Expiration Date, the
  Calculation Agent may determine that such Expiration Date is a Disrupted Day
  only in part, in which case the Calculation Agent shall make adjustments to
  the Number of Warrants for the relevant Component for which such day shall be
  the Expiration Date and shall designate the Scheduled Trading Day determined
  in the manner described in the immediately preceding sentence as the
  Expiration Date for the remaining Warrants for such Component.  “Final
  Disruption Date” means
  April 24, 2013.  Section 6.6 of the
  Equity Definitions shall not apply to any Valuation Date occurring on an
  Expiration Date.

  
	
   

  	
   

  	
   

  
	
  Market Disruption
  Event:

  	
   

  	
  Section 6.3(a) of the Equity Definitions is hereby
  amended by deleting the words “during the one hour period that ends at the
  relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or
  Knock-out Valuation Time, as the case may be,” in clause (ii) thereof.

  
	
   

  	
   

  	
   

  
	
  Multiple Exercise:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Minimum Number of
  Warrants:

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Maximum Number of
  Warrants:

  	
   

  	
  For any Exercise Date, the Number of Warrants
  outstanding for such Component as of such Exercise Date.

  
	
   

  	
   

  	
   

  
	
  Automatic Exercise:

  	
   

  	
  Automatic Exercise shall apply as if “Physical
  Settlement” applied to the Transaction and “In-the-Money” means the VWAP
  Price is greater than the Strike Price.

  
	
   

  	
   

  	
   

  
	
  Issuer’s Telephone
  Number

  	
   

  	
   

  
	
  and Telex and/or
  Facsimile Number

  	
   

  	
   

  
	
  and Contact Details for
  purpose of

  	
   

  	
   

  
	
  Giving Notice:

  	
   

  	
  Asbury Automotive Group

  
	
   

  	
   

  	
  622 Third Avenue, 37th Flooor

  
	
   

  	
   

  	
  New York, NY 10017

  
	
   

  	
   

  	
  Attn: Chief Financial Officer

  
	
   

  	
   

  	
  Telephone: 212-885-2500

  

 

 3
 

 

	
  

  	
   

  	
  Facsimile: 212-297-2645

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Facsimile: 212-297-2653

  
	
   

  	
   

  	
   

  
	
  Settlement Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  Net Share Settlement:

  	
   

  	
  On each Settlement Date, Issuer shall deliver to
  Dealer a number of Shares equal to the Number of Shares to be Delivered for
  such Settlement Date to the account specified by Dealer and cash in lieu of
  any fractional Share valued at the VWAP Price on the Valuation Date
  corresponding to such Settlement Date. 
  If, in the reasonable opinion of Issuer or Dealer, based on advice of
  counsel, for any reason, the Shares deliverable upon Net Share Settlement
  would not be immediately freely transferable by Dealer under Rule 144(k) under
  the Securities Act of 1933, as amended (the “Securities
  Act”), then Dealer may elect to either (x) permit delivery of such
  Shares notwithstanding any restriction on transfer or (y) have the provisions
  set forth in Section 8(b) below apply.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Number of Shares to be Delivered shall be
  delivered by Issuer to Dealer no later than 12:00 noon (local time in New
  York City) on the relevant Settlement Date.

  
	
   

  	
   

  	
   

  
	
  Number of Shares to be
  Delivered:

  	
   

  	
  In respect of any Exercise Date, subject to the last
  sentence of Section 9.5 of the Equity Definitions, the product of (i) the
  number of Warrants exercised or deemed exercised on such Exercise Date, (ii)
  the Warrant Entitlement and (iii) (A) the excess, if any, of the VWAP Price
  on the Valuation Date occurring on such Exercise Date over
  the Strike Price divided by
  (B) such VWAP Price.

  
	
   

  	
   

  	
   

  
	
  VWAP Price:

  	
   

  	
  For any Valuation Date, as determined by the
  Calculation Agent, the NYSE Volume Weighted Average Price per Share for the
  regular trading session (including any extensions thereof) of the Exchange on
  such Valuation Date (without regard to pre-open or after hours trading
  outside of such regular trading session for such Valuation Date), as
  published by Bloomberg at 4:15 p.m. New York time (or 15 minutes following
  the end of any extension of the regular trading session) on such Valuation
  Date, on Bloomberg page “ABG.N <Equity> AQR” (or any successor thereto)
  (or if such published volume-weighted average price is unavailable or is
  manifestly incorrect, the market value of one share on such

  

 

 4
 

 

	
  

  	
   

  	
  Valuation Date, as determined by the Calculation
  Agent using a volume-weighted method).

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

  	
  The provisions of Sections 9.1(c), 9.8, 9.9, 9.10,
  9.11 (except 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
  Seller is the Issuer of the Shares) and 9.12 of the Equity Definitions will
  be applicable, as if “Physical Settlement” applied to the Transaction.

  
	
   

  	
   

  	
   

  
	
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Adjustment:

  	
   

  	
  Calculation Agent Adjustment; provided
  that an Extraordinary Dividend shall not be a Potential Adjustment Event.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Dividend:

  	
   

  	
  Any cash dividend or distribution on the Shares with
  an ex-dividend date occurring on or after the Trade Date and on or prior to
  the Expiration Date the amount of which exceeds the Ordinary Dividend Amount
  for such calendar quarter.

  
	
   

  	
   

  	
   

  
	
  Ordinary Dividend
  Amount:

  	
   

  	
  For any calendar quarter, USD0.20 for the first cash
  dividend or distribution on the Shares for which the ex-dividend date falls
  within such calendar quarter, and zero for any subsequent dividend or
  distribution on the Shares for which the ex-dividend falls within the same
  calendar quarter.

  
	
   

  	
   

  	
   

  
	
  Adjustment in Respect
  of an

  	
   

  	
   

  
	
  Extraordinary Dividend:

  	
   

  	
  In respect of an Extraordinary Dividend, the
  Calculation Agent will adjust the Strike Price, the Number of Warrants, the
  Warrant Entitlement and any other variable relevant to the exercise,
  settlement, payment or other terms of the Transaction to preserve the fair
  value of the Transaction to Buyer after taking into account such Extraordinary
  Dividend.

  
	
  Extraordinary Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
  Consequences of Tender
  Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  

 

 5
 

 

	
  (b)

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  	
   

  
	
  Reference Markets:

  	
   

  	
  For the avoidance of doubt, and without limiting the
  generality of the foregoing provisions, any adjustment effected by the
  Calculation Agent pursuant to Section 12.2(e) and/or Section 12.3(d) of the
  Equity Definitions may (but need not) be determined by reference to the
  adjustment(s) made in respect of Merger Events or Tender Offers, as the case
  may be, in the convertible bond market.

  
	
   

  	
   

  	
   

  
	
  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 shall 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 or Tender Offer and would also constitute a Delisting shall first have
  the consequences specified for the relevant Merger Event or Tender Offer 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

  
	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
  Loss of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Maximum Stock Loan Rate:

  	
   

  	
  1.00% per annum

  
	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
  Increased Cost of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Initial Stock Loan Rate:

  	
   

  	
  0.25% per annum

  
	
   

  	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  For all applicable Additional Disruption Events,
  Buyer

  
	
   

  	
   

  	
   

  	
   

  
	
  Determining Party:

  	
   

  	
  For all applicable Additional Disruption Events,
  Buyer

  
	
   

  	
   

  	
   

  	
   

  
	
  Non-Reliance:

  	
   

  	
  Applicable

  

 

 6
 

 

	
  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

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Issuer Payment Instructions:

  	
   

  	
  To be provided by Issuer.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Offices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Office of Dealer for the Transaction is:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  One New York Plaza, New
  York, New York 10004

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Office of Issuer 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 Issuer:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimilre:

  	
  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
 

 

7.     Representations,
Warranties and Agreements:

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

(i)            On
the Trade Date, (A) none of Issuer and its officers and directors is aware of
any material nonpublic information regarding Issuer or the Shares and (B) all
reports and other documents filed by Issuer 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)           Issuer
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.

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

(iv)          Issuer
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.

(v)          
Issuer 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.

(vi)          On
the Trade Date (A) the assets of Issuer at their fair valuation exceed the
liabilities of Issuer, including contingent liabilities, (B) the capital of
Issuer is adequate to conduct the business of Issuer and (C) Issuer has the
ability to pay its debts and obligations as such debts mature and does not
intend to, or does not believe that it will, incur debt beyond its ability to
pay as such debts mature.

(vii)         Issuer shall not
take any action to decrease the number of Available Shares below the Capped
Number (each as defined below).

(viii)        The representations
and warranties of Issuer set forth in Section 3 of the Agreement and Section 1
of the Purchase Agreement (the “Purchase
Agreement”) dated as of the Trade Date between Issuer and Dealer, as
representative of the Initial Purchasers party thereto, are true and correct
and are hereby deemed to be repeated to Dealer as if set forth herein.

(ix)           Issuer understands
no obligations of Dealer to it hereunder will be entitled to the benefit of
deposit insurance and that such obligations will not be guaranteed by any
affiliate of Dealer or any governmental agency.

(x)            During the period
starting on the first Expiration Date and ending on the last Expiration Date
(the “Settlement Period”), 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”)
and (B) Issuer 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 Settlement
Period.

 8
 

(xi)           During the
Settlement Period, neither Issuer 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 Dealer.

(b)           Each of Dealer and
Issuer 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
Issuer 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,
Dealer represents and warrants to Issuer 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, (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
Issuer agrees and acknowledges (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of Title 11 of the United
States Code (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)           Issuer 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.

(f)            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.

8.  Other Provisions:

(a)           Alternative Calculations and Payment on Early Termination and on
Certain Extraordinary Events. 
If, subject to Section 8(j) below, Issuer shall owe Buyer any amount
pursuant to Sections 12.2, 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 Issuer is the Defaulting Party or a Termination
Event in which Issuer is the Affected Party, that resulted from an event or
events within Issuer’s control) (a “Payment Obligation”),
Issuer shall have the right, in its sole discretion, to satisfy any such
Payment Obligation by the Share Termination Alternative (as defined below) by
giving irrevocable telephonic notice to Buyer, 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, Tender Offer 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, the Tender Offer
Date, Announcement 

 9
 

Date or Early Termination
Date, as applicable:

	
  Share Termination Alternative:

  	
  Applicable and means that Issuer shall deliver to
  Dealer 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 Issuer 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,
  Merger Event or Tender Offer, a Share or 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,
  Merger Event or Tender Offer. If such Insolvency, Nationalization, Merger
  Event or Tender Offer 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 (except 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 Seller is the Issuer of the Shares) and 9.12 of the
  Equity Definitions will be applicable as if “Physical Settlement” applied to
  the Transaction, and all references to “Shares” shall be read as references
  to “Share Termination Delivery Units”. If, in the reasonable opinion of
  Issuer or Dealer, on advice of counsel, for any reason, any securities
  comprising the Share Termination Delivery Units deliverable pursuant to this
  Section 8(a) would not be immediately freely transferable by Dealer under
  Rule 144(k) under the Securities Act, then Dealer may elect to either (x)
  permit delivery of such securities notwithstanding any restriction on
  transfer or (y) have the provisions set forth in Section 8(b) below apply.

  

 

(b)           Registration/Private
Placement Procedures. 
(i)  With respect to the
Transaction, the following provisions shall apply to the extent provided for
above opposite the caption “Net Share Settlement” in Section 2 or in paragraph
(a) of this Section 8.  If so applicable,
then, at the election of Issuer by notice to Buyer within one Exchange Business
Day after the relevant delivery obligation arises,

 10
 

but in any event at least one Exchange Business Day
prior to the date on which such delivery obligation is due, either (A) all
Shares or Share Termination Delivery Units, as the case may be, delivered by
Issuer to Buyer shall be, at the time of such delivery, covered by an effective
registration statement of Issuer for immediate resale by Buyer (such
registration statement and the corresponding prospectus (the “Prospectus”) (including, without limitation, any sections
describing the plan of distribution) in form and content commercially
reasonably satisfactory to Buyer) or (B) Issuer shall deliver additional Shares
or Share Termination Delivery Units, as the case may be, so that the value of
such Shares or Share Termination Delivery Units, as determined by the
Calculation Agent to reflect an appropriate liquidity discount, equals the
value of the number of Shares or Share Termination Delivery Units that would
otherwise be deliverable if such Shares or Share Termination Delivery Units
were freely tradeable (without prospectus delivery) upon receipt by Buyer (such
value, the “Freely Tradeable Value”);
provided that Issuer may not make
the election described in this clause (B) if, on the date of its election, it
has taken, or caused to be taken, any action that would make unavailable either
the exemption pursuant to Section 4(2) of the Securities Act for the sale by
Issuer to Dealer (or any affiliate designated by Dealer) of the Shares or the
exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for
resales of the Shares by Dealer (or any such affiliate of Dealer); provided further that, if requested by Dealer, Issuer shall
make the election described in this clause (B) with respect to Shares delivered
on all Settlement Dates no later than one Exchange Business Day prior to the
first Exercise Date, and the applicable procedures described below shall apply
to all Shares delivered on the Settlement Dates on an aggregate basis.  (For the avoidance of doubt, as used in this
paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

(ii)           If Issuer makes the
election described in clause (b)(i)(A) above:

(A)          Buyer (or an
affiliate of Buyer designated by Buyer) shall be afforded a reasonable
opportunity to conduct a due diligence investigation with respect to Issuer
that is customary in scope for underwritten offerings of equity securities and
that yields results that are commercially reasonably satisfactory to Buyer or its
affiliates, as the case may be, in its discretion; and

(B)           Buyer (or an
affiliate of Buyer designated by Buyer) and Issuer shall enter into an
agreement (a “Registration Agreement”) on
commercially reasonable terms in connection with the public resale of such
Shares or Share Termination Delivery Units, as the case may be, by Buyer or
such affiliate substantially similar to underwriting agreements customary for
underwritten offerings of equity securities, in form and substance commercially
reasonably satisfactory to Buyer or its affiliates and Issuer, which
Registration Agreement shall include, without limitation, provisions
substantially similar to those contained in such underwriting agreements relating
to the indemnification of, and contribution in connection with the liability
of, Buyer and its affiliates and Issuer, shall provide for the payment by
Issuer of all expenses in connection with such resale, including all
registration costs and all fees and expenses of counsel for Buyer, and shall
provide for the delivery of accountants’ “comfort letters” to Buyer and its affiliates
with respect to the financial statements and certain financial information
contained in or incorporated by reference into the Prospectus.

(iii)          If Issuer makes the
election described in clause (b)(i)(B) above:

(A)          Buyer (or an
affiliate of Buyer designated by Buyer) and any potential institutional
purchaser of any such Shares or Share Termination Delivery Units, as the case
may be, from Buyer or such affiliate identified by Buyer shall be afforded a
commercially reasonable opportunity to conduct a due diligence investigation in
compliance with applicable law with respect to Issuer customary in scope for
private placements of equity securities (including, without limitation, the
right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably
requested by them), subject to execution by such recipients of customary
confidentiality agreements reasonably acceptable to Issuer;

(B)           Buyer (or an
affiliate of Buyer designated by Buyer) and Issuer shall enter into an
agreement (a “Private Placement Agreement”) on
commercially reasonable terms in connection with the private placement of such
Shares or Share Termination Delivery Units, as the

 11
 

case may be, by Issuer to Buyer or such affiliate and
the private resale of such shares by Buyer or any such affiliate, substantially
similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance commercially reasonably
satisfactory to Buyer and Issuer, which Private Placement Agreement shall
include, without limitation, provisions substantially similar to those
contained in such private placement purchase agreements relating to the
indemnification of, and contribution in connection with the liability of, Buyer
and its affiliates and Issuer, shall provide for the payment by Issuer of all
expenses in connection with such resale, including all fees and expenses of
counsel for Buyer, shall contain representations, warranties and agreements of
Issuer reasonably necessary or advisable to establish and maintain the
availability of an exemption from the registration requirements of the
Securities Act for such resales, and shall use commercially reasonable efforts
to provide for the delivery of accountants’ “comfort letters” to Buyer and its
affiliates with respect to the financial statements and certain financial information
contained in or incorporated by reference into the offering memorandum prepared
for the resale of such Shares; and

(C)           Issuer agrees that
any Shares or Share Termination Delivery Units so delivered to Dealer, (i) may
be transferred by and among Dealer and its affiliates, and Issuer shall effect
such transfer without any further action by Dealer and (ii) after the minimum “holding
period” within the meaning of Rule 144(d) under the Securities Act has elapsed
with respect to such Shares or any securities issued by Issuer comprising such
Share Termination Delivery Units, Issuer shall promptly remove, or cause the
transfer agent for such Shares or securities to remove, any legends referring
to any such restrictions or requirements from such Shares or securities upon
delivery by Dealer (or such affiliate of Dealer) to Issuer or such transfer
agent of seller’s and broker’s representation letters customarily delivered by
Dealer in connection with resales of restricted securities pursuant to Rule 144
under the Securities Act and reasonably acceptable to the transfer agent for
such Shares, without any further requirement for the delivery of any
certificate, consent, agreement, opinion of counsel, notice or any other
document, any transfer tax stamps or payment of any other amount or any other
action by Dealer (or such affiliate of Dealer).

(c)           Make-whole Shares. If Issuer makes the
election described in clause (b)(i)(B) of paragraph (b) of this Section 8, then
Dealer or its affiliate may sell (which sale shall be made in a commercially
reasonable manner) such Shares or Share Termination Delivery Units, as the case
may be, during a period (the “Resale Period”)
commencing on the Exchange Business Day following delivery of such Shares or
Share Termination Delivery Units, as the case may be, and ending on the
Exchange Business Day on which Dealer completes the sale of all such Shares or
Share Termination Delivery Units, as the case may be, or a sufficient number of
Shares or Share Termination Delivery Units, as the case may be, so that the
realized net proceeds of such sales exceed the Freely Tradeable Value.  If any of such delivered Shares or Share
Termination Delivery Units remain after such realized net proceeds exceed the
Freely Tradeable Value, Dealer shall return such remaining Shares or Share
Termination Delivery Units to Issuer.  If
the Freely Tradeable Value exceeds the realized net proceeds from such resale,
Issuer shall transfer to Dealer by the open of the regular trading session on
the Exchange on the Exchange Trading Day immediately following the last day of
the Resale Period the amount of such excess (the “Additional
Amount”) in cash or in a number of additional Shares (“Make-whole Shares”) in an amount that, based on the Relevant
Price on the last day of the Resale Period (as if such day was the “Valuation
Date” for purposes of computing such Relevant Price), has a dollar value equal
to the Additional Amount.  The Resale
Period shall continue to enable the sale of the Make-whole Shares in the manner
contemplated by this Section 8(c).  This
provision shall be applied successively until the Additional Amount is equal to
zero, subject to Section 8(e).

(d)           Beneficial Ownership. Notwithstanding anything to the
contrary in the Agreement or this Confirmation, in no event shall Buyer be
entitled to receive, or shall be deemed to receive, any Shares if, upon such
receipt of such Shares, the “beneficial ownership” (within the meaning of
Section 13 of the Exchange Act and the rules promulgated thereunder) of Shares
by Buyer, any of its affiliates subject to aggregation with Buyer for 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 Buyer with respect to “beneficial ownership” of any
Shares (collectively, “Buyer Group”)
would be equal to or greater than 8.5% or more of the outstanding Shares.  If any delivery owed to Buyer

 12
 

hereunder is not made, in
whole or in part, as a result of this provision, Issuer’s obligation to make
such delivery shall not be extinguished and Issuer shall make such delivery as
promptly as practicable after, but in no event later than one Exchange Business
Day after, Buyer gives notice to Issuer that such delivery would not result in
Buyer Group directly or indirectly so beneficially owning in excess of 8.5% of
the outstanding Shares.

(e)           Limitations on Settlement by Issuer.  Notwithstanding anything herein or in the
Agreement to the contrary, in no event shall Issuer be required to deliver
Shares in connection with the Transaction in excess of 2,353,376 Shares (as
such number may be adjusted from time to time in accordance with the provisions
hereof) (the “Capped Number”).  Issuer represents and warrants to Dealer
(which shall be deemed to be repeated on each day that the Transaction is
outstanding) that the Capped Number is equal to or less than the number of
authorized but unissued Shares of the Issuer that are not reserved for future
issuance in connection with transactions in the Shares (other than the
Transaction) on the date of the determination of the Capped Number (such
Shares, the “Available Shares”).  In the event Issuer shall not have delivered
the full number of Shares otherwise deliverable as a result of this Section
8(e) (the resulting deficit, the “Deficit Shares”),
Issuer shall be continually obligated to deliver, from time to time until the
full number of Deficit Shares have been delivered pursuant to this paragraph,
Shares when, and to the extent, that (i) Shares are repurchased, acquired or
otherwise received by Issuer or any of its subsidiaries after the Trade Date
(whether or not in exchange for cash, fair value or any other consideration),
(ii) authorized and unissued Shares reserved for issuance in respect of other
transactions prior to such date which prior to the relevant date become no
longer so reserved and (iii) Issuer additionally authorizes and unissued Shares
that are not reserved for other transactions. 
Issuer shall immediately notify Dealer of the occurrence of any of the
foregoing events (including the number of Shares subject to clause (i), (ii) or
(iii) and the corresponding number of Shares to be delivered) and promptly
deliver such Shares thereafter.

(f)            Equity Rights.  Buyer
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 Issuer’s bankruptcy.  For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during
Issuer’s bankruptcy to any claim arising as a result of a breach by Issuer of
any of its obligations under this Confirmation or the Agreement.  For the avoidance of doubt, the parties
acknowledge that this Confirmation is not secured by any collateral that would
otherwise secure the obligations of Issuer herein under or pursuant to any
other agreement.

(g)           Amendments to Equity Definitions and the Agreement.  The following amendments shall be made to the
Equity Definitions and to the Agreement:

(i)            The
first sentence of Section 11.2(c) of the Equity Definitions, prior to clause
(A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent
Adjustment” is specified as the Method of Adjustment in the related
Confirmation of a Share Option Transaction, then following the announcement or
occurrence of any Potential Adjustment Event, the Calculation Agent will
determine whether such Potential Adjustment Event has a material effect on the
theoretical value of the relevant Shares or options on the Shares and, if so,
will (i) make appropriate adjustment(s), if any, to any one or more of:’ and,
the portion of such sentence immediately preceding clause (ii) thereof is
hereby amended by deleting the words “diluting or concentrative” and the words “(provided
that no adjustments will be made to account solely for changes in volatility,
expected dividends, stock loan rate or liquidity relative to the relevant
Shares)” and replacing such latter phrase with the words “(and, for the
avoidance of doubt, adjustments may be made to account solely for changes in
volatility, expected dividends, stock loan rate or liquidity relative to the
relevant Shares)”; and

(ii)           Section 11.2(e)(vii) of the Equity
Definitions is hereby amended by deleting the words “diluting or concentrative”
and replacing them with “material”.

(h)           Transfer and Assignment. 
Buyer may transfer or assign its rights and obligations hereunder and
under the Agreement, in whole or in part, at any time to any person or entity
whatsoever without the consent of Issuer.

 13
 

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

(j)            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 Issuer to Buyer 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 Buyer to Issuer 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, Buyer shall have the right to terminate,
liquidate and otherwise close out the Transaction and to set off any obligation
or right that Buyer or any affiliate of Buyer may have to or against Issuer hereunder
or under the Agreement against any right or obligation Buyer or any of its
affiliates may have against or to Issuer, 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 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(k))
or any other agreement between the parties to the contrary, (A) Issuer shall
not net or set off its obligations under the Transaction against its rights
against Buyer under any other transaction or instrument; and (B) Buyer may net
and set off any rights of Buyer against Issuer arising under the Transaction
only against obligations of Buyer to Issuer arising under any transaction or
instrument if such transaction or instrument does not convey rights to Buyer
senior to the claims of common stockholders in the event of Issuer’s
bankruptcy.  Buyer will give notice to
Issuer of any netting or set off effected under this provision.

(k)           Additional Termination Event.  The occurrence of any one of the following
shall constitute an Additional Termination Event with respect to which the
Transaction is the sole Affected Transaction and Issuer 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; provided that with respect to any of the Additional
Termination Events set forth below, Dealer may choose to treat part of the
Transaction as

 14
 

the sole Affected
Transaction, and, upon the termination of the Affected Transaction, a
Transaction with terms identical to those set forth herein except with a Number
of Warrants equal to the unaffected number of Warrants shall be treated for all
purposes as the Transaction, which shall remain in full force and effect:

(i)             Buyer
reasonably determines that it is advisable to terminate a portion of the
Transaction so that Buyer’s related hedging activities will comply with
applicable securities laws, rules or regulations; or

(ii)            there
shall occur the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or
assets of Issuer and its Restricted Subsidiaries (as defined in the Indenture),
taken as a whole, to any “person” (as that term is used in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)).

(l)            Effectiveness.  If, on or prior to the Effective Date, Buyer
reasonably determines that it is advisable to cancel the Transaction because of
concerns that Buyer’s related hedging activities could be viewed as not
complying with applicable securities laws, rules or regulations, the
Transaction shall be cancelled and shall not become effective, and neither party
shall have any obligation to the other party in respect of the Transaction.

(m)          Extension of Settlement. 
Dealer may divide any Component into additional Components and designate
the Expiration Date and the Number of Warrants for each such Component if Dealer
determines, in its reasonable discretion, that such further division is
necessary or advisable to preserve Dealer’s hedging activity hereunder in light
of existing liquidity conditions in the cash market or stock loan market or to
enable Dealer to effect purchases of Shares in connection with its hedging
activity hereunder in a manner that would, if Dealer were Issuer or an
affiliated purchaser of Issuer, be compliance with applicable legal and
regulatory requirements.

(n)           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)           Amendment.  If the Initial Purchasers party to the
Purchase Agreement exercise their right to purchase additional convertible
notes as set forth therein, this Confirmation shall be deemed to be amended to
provide therefore (in each case at the same Premium per Warrant set forth
herein and otherwise on terms acceptable to Issuer and Dealer) and, to the
extent required, Issuer and Dealer shall amend this Confirmation accordingly
(such amendment to this Confirmation to provide for the payment by Dealer to
Issuer of the additional total premium related thereto).

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 Issuer is a member of the organization sponsoring
the arbitration facility, in which case all arbitrators may be affiliated with
the securities industry.

 15
 

(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)   Issuer agrees that any and all controversies
that may arise between Issuer 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) Issuer 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
 

Issuer 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 Issuer 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

  	
   

  
						

 

 17
 

Annex A

For each Component of the
Transaction, the Number of Warrants and Expiration Date is set forth below.

	
  Component Number

  	
   

  	
  Number of Warrants

  	
   

  	
  Expiration Date

  	
   

  
	
  1

  	
   

  	
  14,708

  	
   

  	
  December 14,2012

  	
   

  
	
  2

  	
   

  	
  14,708

  	
   

  	
  December 17, 2012

  	
   

  
	
  3

  	
   

  	
  14,708

  	
   

  	
  December 18, 2012

  	
   

  
	
  4

  	
   

  	
  14,708

  	
   

  	
  December 19, 2012

  	
   

  
	
  5

  	
   

  	
  14,708

  	
   

  	
  December 20, 2012

  	
   

  
	
  6

  	
   

  	
  14,708

  	
   

  	
  December 21, 2012

  	
   

  
	
  7

  	
   

  	
  14,708

  	
   

  	
  December 24, 2012

  	
   

  
	
  8

  	
   

  	
  14,708

  	
   

  	
  December 26, 2012

  	
   

  
	
  9

  	
   

  	
  14,708

  	
   

  	
  December 27, 2012

  	
   

  
	
  10

  	
   

  	
  14,708

  	
   

  	
  December 28, 2012

  	
   

  
	
  11

  	
   

  	
  14,708

  	
   

  	
  December 31, 2012

  	
   

  
	
  12

  	
   

  	
  14,708

  	
   

  	
  January 2, 2013

  	
   

  
	
  13

  	
   

  	
  14,708

  	
   

  	
  January 3, 2013

  	
   

  
	
  14

  	
   

  	
  14,708

  	
   

  	
  January 4, 2013

  	
   

  
	
  15

  	
   

  	
  14,708

  	
   

  	
  January 7, 2013

  	
   

  
	
  16

  	
   

  	
  14,708

  	
   

  	
  January 8, 2013

  	
   

  
	
  17

  	
   

  	
  14,708

  	
   

  	
  January 9, 2013

  	
   

  
	
  18

  	
   

  	
  14,708

  	
   

  	
  January 10, 2013

  	
   

  
	
  19

  	
   

  	
  14,708

  	
   

  	
  January 11, 2013

  	
   

  
	
  20

  	
   

  	
  14,708

  	
   

  	
  January 14, 2013

  	
   

  
	
  21

  	
   

  	
  14,708

  	
   

  	
  January 15, 2013

  	
   

  
	
  22

  	
   

  	
  14,708

  	
   

  	
  January 16, 2013

  	
   

  
	
  23

  	
   

  	
  14,708

  	
   

  	
  January 17, 2013

  	
   

  
	
  24

  	
   

  	
  14,708

  	
   

  	
  January 18, 2013

  	
   

  
	
  25

  	
   

  	
  14,708

  	
   

  	
  January 22, 2013

  	
   

  
	
  26

  	
   

  	
  14,708

  	
   

  	
  January 23, 2013

  	
   

  
	
  27

  	
   

  	
  14,708

  	
   

  	
  January 24, 2013

  	
   

  
	
  28

  	
   

  	
  14,708

  	
   

  	
  January 25, 2013

  	
   

  
	
  29

  	
   

  	
  14,708

  	
   

  	
  January 28, 2013

  	
   

  
	
  30

  	
   

  	
  14,708

  	
   

  	
  January 29, 2013

  	
   

  
	
  31

  	
   

  	
  14,708

  	
   

  	
  January 30, 2013

  	
   

  
	
  32

  	
   

  	
  14,708

  	
   

  	
  January 31, 2013

  	
   

  
	
  33

  	
   

  	
  14,709

  	
   

  	
  February 1, 2013

  	
   

  
	
  34

  	
   

  	
  14,709

  	
   

  	
  February 4, 2013

  	
   

  
	
  35

  	
   

  	
  14,709

  	
   

  	
  February 5, 2013

  	
   

  
	
  36

  	
   

  	
  14,709

  	
   

  	
  February 6, 2013

  	
   

  
	
  37

  	
   

  	
  14,709

  	
   

  	
  February 7, 2013

  	
   

  
	
  38

  	
   

  	
  14,709

  	
   

  	
  February 8, 2013

  	
   

  
	
  39

  	
   

  	
  14,709

  	
   

  	
  February 11, 2013

  	
   

  
	
  40

  	
   

  	
  14,709

  	
   

  	
  February 12, 2013

  	
   

  
	
  41

  	
   

  	
  14,709

  	
   

  	
  February 13, 2013

  	
   

  
	
  42

  	
   

  	
  14,709

  	
   

  	
  February 14, 2013

  	
   

  
	
  43

  	
   

  	
  14,709

  	
   

  	
  February 15, 2013

  	
   

  
	
  44

  	
   

  	
  14,709

  	
   

  	
  February 19, 2013

  	
   

  
	
  45

  	
   

  	
  14,709

  	
   

  	
  February 20, 2013

  	
   

  
	
  46

  	
   

  	
  14,709

  	
   

  	
  February 21, 2013

  	
   

  
	
  47

  	
   

  	
  14,709

  	
   

  	
  February 22, 2013

  	
   

  
	
  48

  	
   

  	
  14,709

  	
   

  	
  February 25, 2013

  	
   

  
	
  49

  	
   

  	
  14,709

  	
   

  	
  February 26, 2013

  	
   

  
	
  50

  	
   

  	
  14,709

  	
   

  	
  February 27, 2013

  	
   

  
	
  51

  	
   

  	
  14,709

  	
   

  	
  February 28, 2013

  	
   

  

 

 18
 

 

	
  52

  	
   

  	
  14,709

  	
   

  	
  March 1, 2013

  	
   

  
	
  53

  	
   

  	
  14,709

  	
   

  	
  March 4, 2013

  	
   

  
	
  54

  	
   

  	
  14,709

  	
   

  	
  March 5, 2013

  	
   

  
	
  55

  	
   

  	
  14,709

  	
   

  	
  March 6, 2013

  	
   

  
	
  56

  	
   

  	
  14,709

  	
   

  	
  March 7, 2013

  	
   

  
	
  57

  	
   

  	
  14,709

  	
   

  	
  March 8, 2013

  	
   

  
	
  58

  	
   

  	
  14,709

  	
   

  	
  March 11, 2013

  	
   

  
	
  59

  	
   

  	
  14,709

  	
   

  	
  March 12, 2013

  	
   

  
	
  60

  	
   

  	
  14,709

  	
   

  	
  March 13, 2013

  	
   

  
	
  61

  	
   

  	
  14,709

  	
   

  	
  March 14, 2013

  	
   

  
	
  62

  	
   

  	
  14,709

  	
   

  	
  March 15, 2013

  	
   

  
	
  63

  	
   

  	
  14,709

  	
   

  	
  March 18, 2013

  	
   

  
	
  64

  	
   

  	
  14,709

  	
   

  	
  March 19, 2013

  	
   

  
	
  65

  	
   

  	
  14,709

  	
   

  	
  March 20, 2013

  	
   

  
	
  66

  	
   

  	
  14,709

  	
   

  	
  March 21, 2013

  	
   

  
	
  67

  	
   

  	
  14,709

  	
   

  	
  March 22, 2013

  	
   

  
	
  68

  	
   

  	
  14,709

  	
   

  	
  March 25, 2013

  	
   

  
	
  69

  	
   

  	
  14,709

  	
   

  	
  March 26, 2013

  	
   

  
	
  70

  	
   

  	
  14,709

  	
   

  	
  March 27, 2013

  	
   

  
	
  71

  	
   

  	
  14,709

  	
   

  	
  March 28, 2013

  	
   

  
	
  72

  	
   

  	
  14,709

  	
   

  	
  April 1, 2013

  	
   

  
	
  73

  	
   

  	
  14,709

  	
   

  	
  April 2, 2013

  	
   

  
	
  74

  	
   

  	
  14,709

  	
   

  	
  April 3, 2013

  	
   

  
	
  75

  	
   

  	
  14,709

  	
   

  	
  April 4, 2013

  	
   

  
	
  76

  	
   

  	
  14,709

  	
   

  	
  April 5, 2013

  	
   

  
	
  77

  	
   

  	
  14,709

  	
   

  	
  April 8, 2013

  	
   

  
	
  78

  	
   

  	
  14,709

  	
   

  	
  April 9, 2013

  	
   

  
	
  79

  	
   

  	
  14,709

  	
   

  	
  April 10, 2013

  	
   

  
	
  80

  	
   

  	
  14,709

  	
   

  	
  April 11, 2013

  	
   

  

 

 19Exhibit
10.5

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: 165924

  
	
   

  	
   

  
	
  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:

  	
  Issuer Warrant

  
	
   

  	
   

  
	
  REFERENCE NUMBER(S):

  	
  165924

  
			

 

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. (“Issuer”).  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 

	
  Chairman of the Supervisory Board: Clemens
  Börsig

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

  	
   

  	
  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. 

  

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.  For purposes of the Equity Definitions, each
reference herein to a Warrant shall be deemed to be a reference to a Call
Option or an Option, as context requires.

 

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 Issuer 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 Issuer 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,
(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 Issuer
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 Issuer or any
confirmation or other agreement between Dealer and Issuer pursuant to which an
ISDA Master Agreement is deemed to exist between Dealer and Issuer, then
notwithstanding anything to the contrary in such ISDA Master Agreement, such
confirmation or agreement or any other agreement to which Dealer and Issuer 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 is a Warrant Transaction, which shall be considered 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, subject to Section 8(l) below

  
	
   

  	
   

  	
   

  
	
  Components:

  	
   

  	
  The Transaction will be divided into individual
  Components, each with the terms set forth in this Confirmation, and, in
  particular, with the Number of Warrants and Expiration Date set forth in this
  Confirmation. The payments and deliveries to be made upon settlement of the
  Transaction will be determined separately for each 

  

 

 2
 

 

	
  

  	
   

  	
  Component as if each Component were a separate
  Transaction under the Agreement.

  
	
   

  	
   

  	
   

  
	
  Warrant Style:

  	
   

  	
  American

  
	
   

  	
   

  	
   

  
	
  Warrant Type:

  	
   

  	
  Call

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  Issuer

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Dealer

  
	
   

  	
   

  	
   

  
	
  Shares:

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Number of Warrants:

  	
   

  	
  For each Component, as provided in Annex A to this
  Confirmation.

  
	
   

  	
   

  	
   

  
	
  Warrant Entitlement:

  	
   

  	
  One Share per Warrant

  
	
   

  	
   

  	
   

  
	
  Strike Price:

  	
   

  	
  USD45.09

  
	
   

  	
   

  	
   

  
	
  Premium:

  	
   

  	
  USD4,656,000 (Premium per Warrant USD2.6379)

  
	
   

  	
   

  	
   

  
	
  Premium Payment Date:

  	
   

  	
  The Effective Date

  
	
   

  	
   

  	
   

  
	
  Exchange:

  	
   

  	
  New York Stock Exchange

  
	
   

  	
   

  	
   

  
	
  Related Exchange:

  	
   

  	
  All Exchanges

  
	
   

  	
   

  	
   

  
	
  Procedures for
  Exercise:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Time:

  	
   

  	
  Valuation Time

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  As provided in Annex A to this Confirmation
  (or, if such date is not a Scheduled Trading Day, the next following
  Scheduled Trading Day that is not already an Expiration Date for another
  Component); provided that if
  that date is a Disrupted Day, the Expiration Date for such Component shall be
  the first succeeding Scheduled Trading Day that is not a Disrupted Day and is
  not or is not deemed to be an Expiration Date in respect of any other
  Component of the Transaction; and provided
  further that if the Expiration Date has not occurred pursuant to
  the preceding proviso as of the Final Disruption Date, the Final Disruption
  Date shall be the Expiration Date (irrespective of whether such date is an
  Expiration Date occurring on the Final Disruption Date in respect of any
  other Component for the Transaction) and the Calculation Agent shall
  determine the VWAP Price of the Shares as of the Valuation Time on such day. Notwithstanding the foregoing and anything
  to the contrary in the Equity Definitions, if a Market Disruption Event
  occurs on any Expiration Date, the Calculation Agent may determine that such
  Expiration Date is a Disrupted Day only in part, in which case the
  Calculation Agent shall make adjustments to the Number of Warrants for the
  relevant Component for which such day shall be the Expiration Date and shall
  designate the Scheduled Trading Day determined in the manner described in the
  immediately preceding sentence as the Expiration 

  

 

 3
 

 

	
  

  	
   

  	
  Date for the remaining
  Warrants for such Component. “Final Disruption Date” means April 24, 2013. Section 6.6 of the
  Equity Definitions shall not apply to any Valuation Date occurring on an
  Expiration Date.

  
	
   

  	
   

  	
   

  
	
  Market
  Disruption Event:

  	
   

  	
  Section 6.3(a) of the Equity Definitions is hereby
  amended by deleting the words “during the one hour period that ends at the
  relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or
  Knock-out Valuation Time, as the case may be,” in clause (ii) thereof.

  
	
   

  	
   

  	
   

  
	
  Multiple
  Exercise:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Minimum Number
  of Warrants:

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Maximum Number
  of Warrants:

  	
   

  	
  For any Exercise Date, the Number of Warrants
  outstanding for such Component as of such Exercise Date.

  
	
   

  	
   

  	
   

  
	
  Automatic
  Exercise:

  	
   

  	
  Automatic Exercise shall apply as if “Physical
  Settlement” applied to the Transaction and “In-the-Money” means the VWAP
  Price is greater than the Strike Price.

  
	
   

  	
   

  	
   

  
	
  Issuer’s
  Telephone Number

  	
   

  	
   

  
	
  and Telex and/or
  Facsimile Number

  	
   

  	
   

  
	
  and Contact
  Details for purpose of

  	
   

  	
   

  
	
  Giving Notice:

  	
   

  	
  Asbury Automotive Group

  
	
   

  	
   

  	
  622 Third
  Avenue, 37th Flooor

  
	
   

  	
   

  	
  New York, NY
  10017

  
	
   

  	
   

  	
  Attn: Chief
  Financial Officer

  
	
   

  	
   

  	
  Telephone:
  212-885-2500

  
	
   

  	
   

  	
  Facsimile:
  212-297-2645

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Facsimile:
  212-297-2653

  
	
   

  	
   

  	
   

  
	
  Settlement
  Terms:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement
  Currency:

  	
   

  	
  USD

  
	
   

  	
   

  	
   

  
	
  Net Share
  Settlement:

  	
   

  	
  On each Settlement Date, Issuer shall deliver to
  Dealer a number of Shares equal to the Number of Shares to be Delivered for
  such Settlement Date to the account specified by Dealer and cash in lieu of
  any fractional Share valued at the VWAP Price on the Valuation Date
  corresponding to such Settlement Date. If, in the reasonable opinion of
  Issuer or Dealer, based on advice of counsel, for any reason, the Shares
  deliverable upon Net Share Settlement would not be immediately freely
  transferable by Dealer under Rule 144(k) under the Securities Act of 1933, as
  amended (the “Securities Act”), then Dealer
  may elect to either (x) permit delivery of such Shares 

  

 

 4
 

 

	
  

  	
   

  	
  notwithstanding any restriction on transfer or (y)
  have the provisions set forth in Section 8(b) below apply.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Number of Shares to be Delivered shall be
  delivered by Issuer to Dealer no later than 12:00 noon (local time in New
  York City) on the relevant Settlement Date.

  
	
   

  	
   

  	
   

  
	
  Number of Shares
  to be Delivered:

  	
   

  	
  In respect of any Exercise Date, subject to the last
  sentence of Section 9.5 of the Equity Definitions, the product of (i) the
  number of Warrants exercised or deemed exercised on such Exercise Date, (ii)
  the Warrant Entitlement and (iii) (A) the excess, if any, of the VWAP Price
  on the Valuation Date occurring on such Exercise Date over
  the Strike Price divided  by (B) such VWAP Price.

  
	
   

  	
   

  	
   

  
	
  VWAP Price:

  	
   

  	
  For any Valuation Date, as determined by the
  Calculation Agent, the NYSE Volume Weighted Average Price per Share for the
  regular trading session (including any extensions thereof) of the Exchange on
  such Valuation Date (without regard to pre-open or after hours trading
  outside of such regular trading session for such Valuation Date), as
  published by Bloomberg at 4:15 p.m. New York time (or 15 minutes following
  the end of any extension of the regular trading session) on such Valuation
  Date, on Bloomberg page “ABG.N <Equity> AQR” (or any successor thereto)
  (or if such published volume-weighted average price is unavailable or is
  manifestly incorrect, the market value of one share on such Valuation Date,
  as determined by the Calculation Agent using a volume-weighted method).

  
	
   

  	
   

  	
   

  
	
  Other Applicable
  Provisions:

  	
   

  	
  The provisions of Sections 9.1(c), 9.8, 9.9, 9.10,
  9.11 (except 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
  Seller is the Issuer of the Shares) and 9.12 of the Equity Definitions will
  be applicable, as if “Physical Settlement” applied to the Transaction.

  
	
   

  	
   

  	
   

  
	
  Adjustments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In
  respect of any Component:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of
  Adjustment:

  	
   

  	
  Calculation Agent Adjustment; provided
  that an Extraordinary Dividend shall not be a Potential Adjustment Event.

  
	
   

  	
   

  	
   

  
	
  Extraordinary Dividend:

  	
   

  	
  Any cash dividend or distribution on the Shares with
  an ex-dividend date occurring on or after the Trade Date and on or prior to
  the Expiration Date the amount of which exceeds the Ordinary Dividend Amount
  for such calendar quarter.

  

 

 5
 

 

	
  Ordinary Dividend Amount:

  	
   

  	
  For any calendar quarter, USD0.20 for the first cash
  dividend or distribution on the Shares for which the ex-dividend date falls
  within such calendar quarter, and zero for any subsequent dividend or
  distribution on the Shares for which the ex-dividend falls within the same
  calendar quarter.

  
	
   

  	
   

  	
   

  
	
  Adjustment in
  Respect of an

  	
   

  	
   

  
	
  Extraordinary
  Dividend:

  	
   

  	
  In respect of an Extraordinary Dividend, the
  Calculation Agent will adjust the Strike Price, the Number of Warrants, the
  Warrant Entitlement and any other variable relevant to the exercise,
  settlement, payment or other terms of the Transaction to preserve the fair
  value of the Transaction to Buyer after taking into account such
  Extraordinary Dividend.

  
	
   

  	
   

  	
   

  
	
  Extraordinary
  Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consequences of Merger Events:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  
	
  Tender Offer:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  
	
  Consequences of
  Tender Offers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (a)

  	
  Share-for-Share:

  	
   

  	
  Modified Calculation Agent Adjustment

  
	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
  Share-for-Other:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
  Share-for-Combined:

  	
   

  	
  Cancellation and Payment (Calculation Agent
  Determination)

  
	
   

  	
   

  	
   

  
	
  Reference
  Markets:

  	
   

  	
  For the avoidance of doubt, and without limiting the
  generality of the foregoing provisions, any adjustment effected by the
  Calculation Agent pursuant to Section 12.2(e) and/or Section 12.3(d) of the
  Equity Definitions may (but need not) be determined by reference to the
  adjustment(s) made in respect of Merger Events or Tender Offers, as the case
  may be, in the convertible bond market.

  
	
   

  	
   

  	
   

  
	
  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 shall 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 

  

 

 6
 

 

	
  

  	
   

  	
  Exchange. For the avoidance of doubt, the occurrence
  of any event that is a Merger Event or Tender Offer and would also constitute
  a Delisting shall first have the consequences specified for the relevant
  Merger Event or Tender Offer 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

  
	
   

  	
   

  	
   

  	
   

  
	
  (f)

  	
  Loss of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Maximum Stock Loan Rate:

  	
   

  	
  1.00% per annum

  
	
   

  	
   

  	
   

  	
   

  
	
  (g)

  	
  Increased Cost of Stock Borrow:

  	
   

  	
  Applicable

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Initial Stock
  Loan Rate:

  	
   

  	
  0.25% per annum

  
	
   

  	
   

  	
   

  	
   

  
	
  Hedging Party:

  	
   

  	
  For all applicable Additional Disruption Events,
  Buyer

  
	
   

  	
   

  	
   

  
	
  Determining
  Party:

  	
   

  	
  For all applicable Additional Disruption Events,
  Buyer

  
	
   

  	
   

  	
   

  
	
  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

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Issuer Payment Instructions:

  	
   

  	
  To be provided by Issuer.

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Offices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Office of Dealer for the Transaction is:

  
	
   

  	
   

  
	
   

  	
  Winchesterhouse,
  1 Great Winchester Street, London EC2N 2DB

  
	
   

  	
   

  
	
   

  	
  The Office of Issuer for the Transaction is:

  
	
   

  	
   

  
	
   

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

  
						

 

 7
 

 

	
  6.

  	
  Notices: For purposes of this Confirmation:

  
	
   

  	
   

  
	
  (a)

  	
   

  	
  Address for notices or communications to Issuer:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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

  
	
   

  	
   

  	
  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, Issuer represents and warrants to and for the
benefit of, and agrees with, Dealer as follows:

(i)            On the Trade Date, (A) none of
Issuer and its officers and directors is aware of any material nonpublic
information regarding Issuer or the Shares and (B) all reports and other
documents filed by Issuer 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)           Issuer 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.

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

(iv)          Issuer 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.

(v)            Issuer 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.

 8
 

(vi)          On the Trade Date (A) the assets of
Issuer at their fair valuation exceed the liabilities of Issuer, including
contingent liabilities, (B) the capital of Issuer is adequate to conduct the
business of Issuer and (C) Issuer has the ability to pay its debts and
obligations as such debts mature and does not intend to, or does not believe
that it will, incur debt beyond its ability to pay as such debts mature.

(vii)         Issuer
shall not take any action to decrease the number of Available Shares below the
Capped Number (each as defined below).

(viii)        The
representations and warranties of Issuer set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement (the “Purchase Agreement”) dated as of the Trade
Date between Issuer and Dealer, as representative of the Initial Purchasers
party thereto, are true and correct and are hereby deemed to be repeated to
Dealer as if set forth herein.

(ix)           Issuer
understands no obligations of Dealer to it hereunder will be entitled to the
benefit of deposit insurance and that such obligations will not be guaranteed
by any affiliate of Dealer or any governmental agency.

(x)            During
the period starting on the first Expiration Date and ending on the last
Expiration Date (the “Settlement Period”),
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”) and (B) Issuer 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 Settlement Period.

(xi)           During
the Settlement Period, neither Issuer 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 Dealer.

(b)           Each
of Dealer and Issuer 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 Issuer 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,
Dealer represents and warrants to Issuer 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, (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 Issuer agrees and acknowledges (A) that this Confirmation is (i)
a “securities contract,” as such term is defined in Section 741(7) of Title 11
of the United States Code (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, 

 9
 

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)           Issuer
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.

(f)            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.

8.  Other
Provisions:

(a)           Alternative Calculations and Payment on Early Termination and on
Certain Extraordinary Events. 
If, subject to Section 8(j) below, Issuer shall owe Buyer any amount
pursuant to Sections 12.2, 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 Issuer is the Defaulting Party or a Termination
Event in which Issuer is the Affected Party, that resulted from an event or
events within Issuer’s control) (a “Payment Obligation”),
Issuer shall have the right, in its sole discretion, to satisfy any such
Payment Obligation by the Share Termination Alternative (as defined below) by
giving irrevocable telephonic notice to Buyer, 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, Tender Offer 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, the Tender Offer
Date, Announcement Date or Early Termination Date, as applicable:

	
  Share Termination Alternative:

  	
   

  	
  Applicable and means that Issuer shall deliver to
  Dealer 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 Issuer 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,
  Merger Event or Tender Offer, a Share or 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,
  Merger Event or Tender Offer. If such Insolvency, Nationalization, Merger
  Event or Tender Offer involves a choice of consideration to be received by
  holders, such holder shall be deemed to 

  

 

 10

 

	
  

  	
   

  	
  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 (except 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 Seller is the Issuer of the Shares) and 9.12 of the
  Equity Definitions will be applicable as if “Physical Settlement” applied to
  the Transaction, and all references to “Shares” shall be read as references
  to “Share Termination Delivery Units”. If, in the reasonable opinion of
  Issuer or Dealer, on advice of counsel, for any reason, any securities
  comprising the Share Termination Delivery Units deliverable pursuant to this
  Section 8(a) would not be immediately freely transferable by Dealer under
  Rule 144(k) under the Securities Act, then Dealer may elect to either (x)
  permit delivery of such securities notwithstanding any restriction on
  transfer or (y) have the provisions set forth in Section 8(b) below apply.

  

 

(b)           Registration/Private Placement Procedures.  (i) 
With respect to the Transaction, the following provisions shall apply to
the extent provided for above opposite the caption “Net Share Settlement” in
Section 2 or in paragraph (a) of this Section 8.  If so applicable, then, at the election of
Issuer by notice to Buyer within one Exchange Business Day after the relevant
delivery obligation arises,  but in any
event at least one Exchange Business Day prior to the date on which such delivery
obligation is due, either (A) all Shares or Share Termination Delivery Units,
as the case may be, delivered by Issuer to Buyer shall be, at the time of such
delivery, covered by an effective registration statement of Issuer for
immediate resale by Buyer (such registration statement and the corresponding
prospectus (the “Prospectus”) (including, without
limitation, any sections describing the plan of distribution) in form and
content commercially reasonably satisfactory to Buyer) or (B) Issuer shall
deliver additional Shares or Share Termination Delivery Units, as the case may
be, so that the value of such Shares or Share Termination Delivery Units, as
determined by the Calculation Agent to reflect an appropriate liquidity
discount, equals the value of the number of Shares or Share Termination
Delivery Units that would otherwise be deliverable if such Shares or Share
Termination Delivery Units were freely tradeable (without prospectus delivery)
upon receipt by Buyer (such value, the “Freely
Tradeable Value”); provided
that Issuer may not make the election described in this clause (B) if, on the
date of its election, it has taken, or caused to be taken, any action that
would make unavailable either the exemption pursuant to Section 4(2) of the
Securities Act for the sale by Issuer to Dealer (or any affiliate designated by
Dealer) of the Shares or the exemption pursuant to Section 4(1) or Section 4(3)
of the Securities Act for resales of the Shares by Dealer (or any such
affiliate of Dealer); provided further
that, if requested by Dealer, Issuer shall make the election described in this
clause (B) with respect to Shares delivered on all Settlement Dates no later
than one Exchange Business Day prior to the first Exercise Date, and the
applicable procedures described below shall apply to all Shares delivered on
the Settlement Dates on an aggregate basis. 
(For the avoidance of doubt, as used in this paragraph (b) only, the
term “Issuer” shall mean the issuer of the relevant securities, as the context
shall require.)

(ii)           If
Issuer makes the election described in clause (b)(i)(A) above:

(A)          Buyer
(or an affiliate of Buyer designated by Buyer) shall be afforded a reasonable
opportunity to conduct a due diligence investigation with respect to Issuer
that is customary in scope for underwritten offerings of equity securities and
that yields results that are commercially reasonably satisfactory to Buyer or its
affiliates, as the case may be, in its discretion; and

(B)           Buyer
(or an affiliate of Buyer designated by Buyer) and Issuer shall enter into an
agreement (a “Registration Agreement”) on
commercially reasonable terms in connection with the public resale of such
Shares or Share Termination Delivery Units, as the case may be, by Buyer or
such affiliate substantially similar to underwriting agreements customary for 

 11
 

underwritten offerings of
equity securities, in form and substance commercially reasonably satisfactory
to Buyer or its affiliates and Issuer, which Registration Agreement shall
include, without limitation, provisions substantially similar to those
contained in such underwriting agreements relating to the indemnification of,
and contribution in connection with the liability of, Buyer and its affiliates
and Issuer, shall provide for the payment by Issuer of all expenses in
connection with such resale, including all registration costs and all fees and
expenses of counsel for Buyer, and shall provide for the delivery of
accountants’ “comfort letters” to Buyer and its affiliates with respect to the
financial statements and certain financial information contained in or
incorporated by reference into the Prospectus.

(iii)          If
Issuer makes the election described in clause (b)(i)(B) above:

(A)          Buyer
(or an affiliate of Buyer designated by Buyer) and any potential institutional
purchaser of any such Shares or Share Termination Delivery Units, as the case
may be, from Buyer or such affiliate identified by Buyer shall be afforded a
commercially reasonable opportunity to conduct a due diligence investigation in
compliance with applicable law with respect to Issuer customary in scope for
private placements of equity securities (including, without limitation, the
right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested
by them), subject to execution by such recipients of customary confidentiality
agreements reasonably acceptable to Issuer;

(B)           Buyer
(or an affiliate of Buyer designated by Buyer) and Issuer shall enter into an
agreement (a “Private Placement Agreement”) on
commercially reasonable terms in connection with the private placement of such
Shares or Share Termination Delivery Units, as the case may be, by Issuer to
Buyer or such affiliate and the private resale of such shares by Buyer or any
such affiliate, substantially similar to private placement purchase agreements
customary for private placements of equity securities, in form and substance
commercially reasonably satisfactory to Buyer and Issuer, which Private
Placement Agreement shall include, without limitation, provisions substantially
similar to those contained in such private placement purchase agreements
relating to the indemnification of, and contribution in connection with the
liability of, Buyer and its affiliates and Issuer, shall provide for the
payment by Issuer of all expenses in connection with such resale, including all
fees and expenses of counsel for Buyer, shall contain representations,
warranties and agreements of Issuer reasonably necessary or advisable to
establish and maintain the availability of an exemption from the registration
requirements of the Securities Act for such resales, and shall use commercially
reasonable efforts to provide for the delivery of accountants’ “comfort letters”
to Buyer and its affiliates with respect to the financial statements and
certain financial information contained in or incorporated by reference into
the offering memorandum prepared for the resale of such Shares; and

(C)           Issuer
agrees that any Shares or Share Termination Delivery Units so delivered to Dealer,
(i) may be transferred by and among Dealer and its affiliates, and Issuer shall
effect such transfer without any further action by Dealer and (ii) after the
minimum “holding period” within the meaning of Rule 144(d) under the Securities
Act has elapsed with respect to such Shares or any securities issued by Issuer
comprising such Share Termination Delivery Units, Issuer shall promptly remove,
or cause the transfer agent for such Shares or securities to remove, any
legends referring to any such restrictions or requirements from such Shares or
securities upon delivery by Dealer (or such affiliate of Dealer) to Issuer or
such transfer agent of seller’s and broker’s representation letters customarily
delivered by Dealer in connection with resales of restricted securities
pursuant to Rule 144 under the Securities Act and reasonably acceptable to the
transfer agent for such Shares, without any further requirement for the
delivery of any certificate, consent, agreement, opinion of counsel, notice or
any other document, any transfer tax stamps or payment of any other amount or
any other action by Dealer (or such affiliate of Dealer).

(c)           Make-whole Shares. If Issuer makes the
election described in clause (b)(i)(B) of paragraph (b) of this Section 8, then
Dealer or its affiliate may sell (which sale shall be made in a commercially
reasonable manner) such Shares or Share Termination Delivery Units, as the case
may be, during a period (the “Resale Period”)
commencing on the Exchange Business Day following delivery of 

 12
 

such Shares or Share
Termination Delivery Units, as the case may be, and ending on the Exchange
Business Day on which Dealer completes the sale of all such Shares or Share
Termination Delivery Units, as the case may be, or a sufficient number of Shares
or Share Termination Delivery Units, as the case may be, so that the realized
net proceeds of such sales exceed the Freely Tradeable Value.  If any of such delivered Shares or Share
Termination Delivery Units remain after such realized net proceeds exceed the
Freely Tradeable Value, Dealer shall return such remaining Shares or Share
Termination Delivery Units to Issuer.  If
the Freely Tradeable Value exceeds the realized net proceeds from such resale,
Issuer shall transfer to Dealer by the open of the regular trading session on
the Exchange on the Exchange Trading Day immediately following the last day of
the Resale Period the amount of such excess (the “Additional
Amount”) in cash or in a number of additional Shares (“Make-whole Shares”) in an amount that, based on the Relevant
Price on the last day of the Resale Period (as if such day was the “Valuation
Date” for purposes of computing such Relevant Price), has a dollar value equal
to the Additional Amount.  The Resale
Period shall continue to enable the sale of the Make-whole Shares in the manner
contemplated by this Section 8(c).  This
provision shall be applied successively until the Additional Amount is equal to
zero, subject to Section 8(e).

(d)           Beneficial Ownership. Notwithstanding anything to the contrary
in the Agreement or this Confirmation, in no event shall Buyer be entitled to
receive, or shall be deemed to receive, any Shares if, upon such receipt of
such Shares, the “beneficial ownership” (within the meaning of Section 13 of
the Exchange Act and the rules promulgated thereunder) of Shares by Buyer, any
of its affiliates subject to aggregation with Buyer for 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 Buyer with respect to “beneficial ownership” of any Shares (collectively, “Buyer Group”) would be equal to or greater than 8.5% or more
of the outstanding Shares.  If any
delivery owed to Buyer hereunder is not made, in whole or in part, as a result
of this provision, Issuer’s obligation to make such delivery shall not be
extinguished and Issuer shall make such delivery as promptly as practicable
after, but in no event later than one Exchange Business Day after, Buyer gives
notice to Issuer that such delivery would not result in Buyer Group directly or
indirectly so beneficially owning in excess of 8.5% of the outstanding Shares.

(e)           Limitations on Settlement by Issuer.  Notwithstanding anything herein or in the
Agreement to the contrary, in no event shall Issuer be required to deliver
Shares in connection with the Transaction in excess of 3,530,064 Shares (as
such number may be adjusted from time to time in accordance with the provisions
hereof) (the “Capped Number”).  Issuer represents and warrants to Dealer
(which shall be deemed to be repeated on each day that the Transaction is
outstanding) that the Capped Number is equal to or less than the number of
authorized but unissued Shares of the Issuer that are not reserved for future
issuance in connection with transactions in the Shares (other than the
Transaction) on the date of the determination of the Capped Number (such
Shares, the “Available Shares”).  In the event Issuer shall not have delivered
the full number of Shares otherwise deliverable as a result of this Section
8(e) (the resulting deficit, the “Deficit Shares”),
Issuer shall be continually obligated to deliver, from time to time until the
full number of Deficit Shares have been delivered pursuant to this paragraph,
Shares when, and to the extent, that (i) Shares are repurchased, acquired or
otherwise received by Issuer or any of its subsidiaries after the Trade Date
(whether or not in exchange for cash, fair value or any other consideration),
(ii) authorized and unissued Shares reserved for issuance in respect of other
transactions prior to such date which prior to the relevant date become no
longer so reserved and (iii) Issuer additionally authorizes and unissued Shares
that are not reserved for other transactions. 
Issuer shall immediately notify Dealer of the occurrence of any of the
foregoing events (including the number of Shares subject to clause (i), (ii) or
(iii) and the corresponding number of Shares to be delivered) and promptly
deliver such Shares thereafter.

(f)            Equity Rights.  Buyer
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 Issuer’s bankruptcy.  For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during
Issuer’s bankruptcy to any claim arising as a result of a breach by Issuer of
any of its obligations under this Confirmation or the Agreement.  For the avoidance of doubt, the parties
acknowledge that this Confirmation is not secured by any collateral that would
otherwise secure the obligations of Issuer herein under or pursuant to any
other agreement.

 13
 

(g)           Amendments to Equity Definitions and the Agreement.  The following amendments shall be made to the
Equity Definitions and to the Agreement:

(i)            The
first sentence of Section 11.2(c) of the Equity Definitions, prior to clause
(A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent
Adjustment” is specified as the Method of Adjustment in the related
Confirmation of a Share Option Transaction, then following the announcement or
occurrence of any Potential Adjustment Event, the Calculation Agent will
determine whether such Potential Adjustment Event has a material effect on the
theoretical value of the relevant Shares or options on the Shares and, if so,
will (i) make appropriate adjustment(s), if any, to any one or more of:’ and,
the portion of such sentence immediately preceding clause (ii) thereof is
hereby amended by deleting the words “diluting or concentrative” and the words “(provided
that no adjustments will be made to account solely for changes in volatility,
expected dividends, stock loan rate or liquidity relative to the relevant
Shares)” and replacing such latter phrase with the words “(and, for the
avoidance of doubt, adjustments may be made to account solely for changes in
volatility, expected dividends, stock loan rate or liquidity relative to the
relevant Shares)”; and

(ii)           Section
11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “diluting
or concentrative” and replacing them with “material”.

(h)           Transfer and Assignment. 
Buyer may transfer or assign its rights and obligations hereunder and
under the Agreement, in whole or in part, at any time to any person or entity
whatsoever without the consent of Issuer.

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

(j)            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 Issuer to Buyer 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 Buyer to
Issuer 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,
Buyer shall have the right to terminate, liquidate and otherwise close out the
Transaction and to set off any obligation or right that Buyer or any affiliate
of Buyer may have to or against Issuer hereunder or under the Agreement against
any right or obligation Buyer or any of its affiliates may have against or to
Issuer, 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 

 14
 

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(k)) or any other
agreement between the parties to the contrary, (A) Issuer shall not net or set
off its obligations under the Transaction against its rights against Buyer
under any other transaction or instrument; and (B) Buyer may net and set off
any rights of Buyer against Issuer arising under the Transaction only against
obligations of Buyer to Issuer arising under any transaction or instrument if
such transaction or instrument does not convey rights to Buyer senior to the
claims of common stockholders in the event of Issuer’s bankruptcy.  Buyer will give notice to Issuer of any
netting or set off effected under this provision.

(k)           Additional Termination Event.  The occurrence of any one of the following
shall constitute an Additional Termination Event with respect to which the
Transaction is the sole Affected Transaction and Issuer 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; provided that with respect to any of the Additional
Termination Events set forth below, Dealer may choose to treat part of the
Transaction as the sole Affected Transaction, and, upon the termination of the
Affected Transaction, a Transaction with terms identical to those set forth
herein except with a Number of Warrants equal to the unaffected number of
Warrants shall be treated for all purposes as the Transaction, which shall
remain in full force and effect:

(i)             Buyer reasonably determines that it
is advisable to terminate a portion of the Transaction so that Buyer’s related
hedging activities will comply with applicable securities laws, rules or
regulations; or

(ii)            there shall occur the direct or
indirect sale, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of Issuer and its Restricted
Subsidiaries (as defined in the Indenture), taken as a whole, to any “person”
(as that term is used in Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)).

(l)            Effectiveness.  If, on or prior to the Effective Date, Buyer
reasonably determines that it is advisable to cancel the Transaction because of
concerns that Buyer’s related hedging activities could be viewed as not
complying with applicable securities laws, rules or regulations, the
Transaction shall be cancelled and shall not become effective, and neither
party shall have any obligation to the other party in respect of the
Transaction.

(m)          Extension of Settlement. 
Dealer may divide any Component into additional Components and designate
the Expiration Date and the Number of Warrants for each such Component if Dealer
determines, in its reasonable discretion, that such further division is
necessary or advisable to preserve Dealer’s hedging activity hereunder in light
of existing liquidity conditions in the cash market or stock loan market or to
enable Dealer to effect purchases of Shares in connection with its hedging
activity hereunder in a manner that would, if Dealer were Issuer or an
affiliated purchaser of Issuer, be compliance with applicable legal and
regulatory requirements.

(n)           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)           Amendment.  If the Initial Purchasers party to the
Purchase Agreement exercise their right to purchase additional convertible
notes as set forth therein, this Confirmation shall be deemed to be 

 15
 

amended to provide
therefore (in each case at the same Premium per Warrant set forth herein and
otherwise on terms acceptable to Issuer and Dealer) and, to the extent
required, Issuer and Dealer shall amend this Confirmation accordingly (such
amendment to this Confirmation to provide for the payment by Dealer to Issuer
of the additional total premium related thereto).

(q)           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.

(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 Issuer 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)   Issuer agrees that any and all controversies
that may arise between Issuer 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) Issuer 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
 

Issuer 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 Issuer 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
 

Annex A

For each Component
of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

	
  Component Number

  	
   

  	
  Number of Warrants

  	
   

  	
  Expiration Date

  
	
  1

  	
   

  	
  22,062

  	
   

  	
  December 14,2012

  
	
  2

  	
   

  	
  22,062

  	
   

  	
  December 17,
  2012

  
	
  3

  	
   

  	
  22,062

  	
   

  	
  December 18, 2012

  
	
  4

  	
   

  	
  22,062

  	
   

  	
  December 19,
  2012

  
	
  5

  	
   

  	
  22,062

  	
   

  	
  December 20,
  2012

  
	
  6

  	
   

  	
  22,062

  	
   

  	
  December 21,
  2012

  
	
  7

  	
   

  	
  22,062

  	
   

  	
  December 24,
  2012

  
	
  8

  	
   

  	
  22,062

  	
   

  	
  December 26,
  2012

  
	
  9

  	
   

  	
  22,063

  	
   

  	
  December 27,
  2012

  
	
  10

  	
   

  	
  22,063

  	
   

  	
  December 28,
  2012

  
	
  11

  	
   

  	
  22,063

  	
   

  	
  December 31,
  2012

  
	
  12

  	
   

  	
  22,063

  	
   

  	
  January 2, 2013

  
	
  13

  	
   

  	
  22,063

  	
   

  	
  January 3, 2013

  
	
  14

  	
   

  	
  22,063

  	
   

  	
  January 4, 2013

  
	
  15

  	
   

  	
  22,063

  	
   

  	
  January 7, 2013

  
	
  16

  	
   

  	
  22,063

  	
   

  	
  January 8, 2013

  
	
  17

  	
   

  	
  22,063

  	
   

  	
  January 9, 2013

  
	
  18

  	
   

  	
  22,063

  	
   

  	
  January 10, 2013

  
	
  19

  	
   

  	
  22,063

  	
   

  	
  January 11, 2013

  
	
  20

  	
   

  	
  22,063

  	
   

  	
  January 14, 2013

  
	
  21

  	
   

  	
  22,063

  	
   

  	
  January 15, 2013

  
	
  22

  	
   

  	
  22,063

  	
   

  	
  January 16, 2013

  
	
  23

  	
   

  	
  22,063

  	
   

  	
  January 17, 2013

  
	
  24

  	
   

  	
  22,063

  	
   

  	
  January 18, 2013

  
	
  25

  	
   

  	
  22,063

  	
   

  	
  January 22, 2013

  
	
  26

  	
   

  	
  22,063

  	
   

  	
  January 23, 2013

  
	
  27

  	
   

  	
  22,063

  	
   

  	
  January 24, 2013

  
	
  28

  	
   

  	
  22,063

  	
   

  	
  January 25, 2013

  
	
  29

  	
   

  	
  22,063

  	
   

  	
  January 28, 2013

  
	
  30

  	
   

  	
  22,063

  	
   

  	
  January 29, 2013

  
	
  31

  	
   

  	
  22,063

  	
   

  	
  January 30, 2013

  
	
  32

  	
   

  	
  22,063

  	
   

  	
  January 31, 2013

  
	
  33

  	
   

  	
  22,063

  	
   

  	
  February 1, 2013

  
	
  34

  	
   

  	
  22,063

  	
   

  	
  February 4, 2013

  
	
  35

  	
   

  	
  22,063

  	
   

  	
  February 5, 2013

  
	
  36

  	
   

  	
  22,063

  	
   

  	
  February 6, 2013

  
	
  37

  	
   

  	
  22,063

  	
   

  	
  February 7, 2013

  
	
  38

  	
   

  	
  22,063

  	
   

  	
  February 8, 2013

  
	
  39

  	
   

  	
  22,063

  	
   

  	
  February 11,
  2013

  
	
  40

  	
   

  	
  22,063

  	
   

  	
  February 12,
  2013

  
	
  41

  	
   

  	
  22,063

  	
   

  	
  February 13,
  2013

  
	
  42

  	
   

  	
  22,063

  	
   

  	
  February 14,
  2013

  
	
  43

  	
   

  	
  22,063

  	
   

  	
  February 15,
  2013

  
	
  44

  	
   

  	
  22,063

  	
   

  	
  February 19,
  2013

  
	
  45

  	
   

  	
  22,063

  	
   

  	
  February 20,
  2013

  
	
  46

  	
   

  	
  22,063

  	
   

  	
  February 21,
  2013

  
	
  47

  	
   

  	
  22,063

  	
   

  	
  February 22,
  2013

  
	
  48

  	
   

  	
  22,063

  	
   

  	
  February 25,
  2013

  
	
  49

  	
   

  	
  22,063

  	
   

  	
  February 26,
  2013

  
	
  50

  	
   

  	
  22,063

  	
   

  	
  February 27,
  2013

  
	
  51

  	
   

  	
  22,063

  	
   

  	
  February 28,
  2013

  

 

 18
 

 

	
  52

  	
   

  	
  22,063

  	
   

  	
  March 1, 2013

  
	
  53

  	
   

  	
  22,063

  	
   

  	
  March 4, 2013

  
	
  54

  	
   

  	
  22,063

  	
   

  	
  March 5, 2013

  
	
  55

  	
   

  	
  22,063

  	
   

  	
  March 6, 2013

  
	
  56

  	
   

  	
  22,063

  	
   

  	
  March 7, 2013

  
	
  57

  	
   

  	
  22,063

  	
   

  	
  March 8, 2013

  
	
  58

  	
   

  	
  22,063

  	
   

  	
  March 11, 2013

  
	
  59

  	
   

  	
  22,063

  	
   

  	
  March 12, 2013

  
	
  60

  	
   

  	
  22,063

  	
   

  	
  March 13, 2013

  
	
  61

  	
   

  	
  22,063

  	
   

  	
  March 14, 2013

  
	
  62

  	
   

  	
  22,063

  	
   

  	
  March 15, 2013

  
	
  63

  	
   

  	
  22,063

  	
   

  	
  March 18, 2013

  
	
  64

  	
   

  	
  22,063

  	
   

  	
  March 19, 2013

  
	
  65

  	
   

  	
  22,063

  	
   

  	
  March 20, 2013

  
	
  66

  	
   

  	
  22,063

  	
   

  	
  March 21, 2013

  
	
  67

  	
   

  	
  22,063

  	
   

  	
  March 22, 2013

  
	
  68

  	
   

  	
  22,063

  	
   

  	
  March 25, 2013

  
	
  69

  	
   

  	
  22,063

  	
   

  	
  March 26, 2013

  
	
  70

  	
   

  	
  22,063

  	
   

  	
  March 27, 2013

  
	
  71

  	
   

  	
  22,063

  	
   

  	
  March 28, 2013

  
	
  72

  	
   

  	
  22,063

  	
   

  	
  April 1, 2013

  
	
  73

  	
   

  	
  22,063

  	
   

  	
  April 2, 2013

  
	
  74

  	
   

  	
  22,063

  	
   

  	
  April 3, 2013

  
	
  75

  	
   

  	
  22,063

  	
   

  	
  April 4, 2013

  
	
  76

  	
   

  	
  22,063

  	
   

  	
  April 5, 2013

  
	
  77

  	
   

  	
  22,063

  	
   

  	
  April 8, 2013

  
	
  78

  	
   

  	
  22,063

  	
   

  	
  April 9, 2013

  
	
  79

  	
   

  	
  22,063

  	
   

  	
  April 10, 2013

  
	
  80

  	
   

  	
  22,063

  	
   

  	
  April 11, 2013

  

 

 19

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"}]]