Document:

EX-4.4

	 	 	JPMorgan Chase Bank, National Association

	 	 	P.O. Box 161

	60	 	Victoria Embankment

	 	 	London EC4Y 0JP

	 	 	England

June 20, 2006

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

Re: Call Option Transaction

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

The definitions and provisions contained in the 1996 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms used
herein have the meanings assigned to them in the Offering Memorandum dated June 20, 2006 (the
“Offering Memorandum”) relating to the USD 250,000,000 principal amount of 2.25% convertible senior
notes due 2036, (the “Convertible Notes” and each USD 1,000 principal amount of Convertible Notes,
a “Convertible Note”) issued by Counterparty pursuant to an Indenture to be dated June 26, 2006
between Counterparty and Wells Fargo Bank, N.A., as trustee (the “Indenture”). In the event of any
inconsistency between the terms defined in the Offering Memorandum, the Indenture and this
Confirmation, this Confirmation shall govern.

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

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

General Terms:

	 	 	 	Trade Date: June 20, 2006

	 	 	 	Option Style: “Modified American”, as set forth under “Exercise and Valuation” below

	 	 	 
	Option Type:

	 	Call
	 
	 	 
	Buyer:

	 	Counterparty
	 
	 	 
	Seller:

	 	JPMorgan

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

	 	 	 	Number of Options: 100,000. For the avoidance of doubt, the Number of Options shall be
reduced by any Options exercised by Counterparty. In no event will the Number of
Options be less than zero.

	 	 	 	Option Entitlement: As of any date, a number equal to the Conversion Rate as of such date (as
defined in the Indenture, but without regard to any adjustments to the Conversion Rate
pursuant to Section 12.02(i), Section 12.03 or to Section 12.04 of the Indenture), for
each Convertible Note.

	 	 	 
	Strike Price:

	 	USD 59.4294
	 
	 	 
	Premium:

	 	USD 40,254,000
	 
	 	 
	Premium Payment Date:

	 	June 26, 2006
	 
	 	 
	Exchange:

	 	The New York Stock Exchange

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

Exercise and Valuation:

	 	 	 	Exercise Period(s): Notwithstanding the Equity Definitions, the Exercise Period shall be, in
respect of the Exercisable Options (as defined below), each period commencing from the
date a notice of conversion is submitted to Counterparty by a holder of Convertible
Notes to and including the Exchange Business Day immediately preceding the first day of
the Cash Settlement Averaging Period; provided that if Counterparty has validly
designated a redemption date for the Convertible Notes pursuant to the terms of the
Indenture, there shall be a single Exercise Period for Exercisable Options with respect
to any Convertible Notes so called for redemption and surrendered for conversion
following Counterparty’s notice of such redemption and the final day of the Exercise
Period shall be the Exchange Business Day immediately preceding the designated
redemption date; provided further that if by April 29, 2016 Counterparty has not
specified June 15, 2016 as a redemption date for the Convertible Notes pursuant to the
terms of the Indenture, notices of conversion received by Counterparty from holders of
Convertible Notes following the date that is 29 Scheduled Valid Days prior to June 15,
2016 shall not result in the commencement of an Exercise Period and no Exercisable
Options will be exercised or deemed exercised in respect of such notices of conversion
of Convertible Notes.

	 	 	 	Exercisable Options: In respect of each Exercise Period, a number of Options equal to the
number of Convertible Notes surrendered to Counterparty for conversion with respect to
such Exercise Period but no greater than the Number of Options.

Expiration Time: The Valuation Time

	 	 	 	Expiration Date: June 15, 2016, subject to earlier exercise and subject to the second proviso
in the definition of Exercise Period above.

	 	 	 	Multiple Exercise: Applicable, as described under Exercisable Options above.

	 	 	 	Automatic Exercise: Applicable; and means that, in respect of an Exercise Period, a number of
Options not previously exercised hereunder equal to the Exercisable Options shall be
deemed to be exercised on the Expiration Date for such Exercisable Options; provided
that such Options shall be deemed exercised only to the extent that Counterparty has
provided a Notice of Exercise to JPMorgan.

	 	 	 	Notice of Exercise: Notwithstanding anything to the contrary in the Equity Definitions, in
order to exercise any Options, Counterparty must notify JPMorgan (in writing and orally)
at least one Exchange Business Day prior to the first day of the Cash Settlement
Averaging Period for the Options being exercised of (i) the number of such Options and
(ii) the first day of the Cash Settlement Averaging Period and the Settlement Date;
provided that if Counterparty has:

(A) designated June 15, 2016 as a redemption date
for the Convertible Notes pursuant to the terms of
the Indenture, such notice may be given on or prior
to the Exchange Business Day immediately preceding
the Expiration Date for the Exercisable Options
corresponding to the Convertible Notes for which a
redemption date has been specified and need only
specify the number of such Exercisable Options; and

(B) designated a redemption date that is prior to
June 15, 2016 for the Convertible Notes pursuant to
the terms of the Indenture, (x) Counterparty must, on
or prior to the last day on which Counterparty is
permitted to validly designate such date as a
redemption date pursuant to the terms of the
Indenture, notify JPMorgan (in writing and orally) of
(1) the number of Convertible Notes being redeemed
and (2) the redemption date for the Convertible Notes
that are being redeemed; and (y) the Notice of
Exercise may be given on or prior to the Exchange
Business Day immediately preceding such redemption
date, specifying the number of such Exercisable
Options.

	 	 	 	Valuation Time: At the close of trading of the regular trading session on the Exchange
without regard to any extended trading session.

	 	 	 	Market Disruption Event: Notwithstanding Section 4.3 of the Equity Definitions, Market
Disruption Event means a failure by the primary United States national securities
exchange or market on which the Shares are listed or admitted to trading to open for
trading during its regular trading session or the occurrence or existence prior to 1:00
p.m. on any Scheduled Valid Day for the Shares for an aggregate one half hour period of
any suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the stock exchange or otherwise) in the Shares or in any
options, contracts or future contracts relating to the Shares.

Settlement Terms:

	 	 	 	Settlement Method: Net Share Settlement

	 	 	 	Net Share Settlement: JPMorgan will deliver to Counterparty, on the Settlement
Date, a number of Shares equal to the Net Shares in respect of an Option exercise. In
no event will the Net Shares be less than zero.

	 	 	 	Net Shares: In respect of any Option exercised or deemed exercised, for each
Option, a number of Shares equal to (i) the Option Entitlement multiplied by (ii) the
sum of the quotients, for each Valid Day during the Cash Settlement Averaging Period
for such Option, of (A) the Relevant Price on such Valid Day less the Strike Price,
divided by (B) such Relevant Price, divided by (iii) 25; provided, however, that if
the calculation contained in clause (A) above results in a negative number, such number
shall be replaced with the number “zero”.

JPMorgan will deliver cash in lieu of any fractional
Shares to be delivered with respect to any Net Shares
to be delivered hereunder valued at the Relevant
Price for the last Valid Day of the Cash Settlement
Averaging Period.

	 	 	 	Valid Day: A day during which (a) trading in the Shares generally occurs on the
primary United States national securities exchange or market on which the Shares are
listed or admitted to trading and (b) there is no Market Disruption Event.

	 	 	 	Scheduled Valid Day: A day that is scheduled to be a Valid Day on the primary United States
national securities exchange or market on which the Shares are listed or admitted to
trading.

	 	 	 	Relevant Price: In respect of any Option exercised or deemed exercised, the per Share
volume-weighted average price for each of the 25 consecutive Valid Days in any Cash
Settlement Averaging Period as displayed under the heading “Bloomberg VWAP” on Bloomberg
page GPI.N <equity> AQR (or any successor thereto) in respect of the period from
9:30 a.m. to 4:00 p.m. (New York City time) on such Valid Day (or if such
volume-weighted average price is unavailable, the market value of one Share on such
Valid Day, as determined by the Calculation Agent using a volume-weighted method).

	 	 	 	Cash Settlement Averaging Period: For any Exercisable Options relating to the
conversion of Convertible Notes, the 25 consecutive Valid Days commencing on and
including the second Valid Day following the receipt by Counterparty of a notice of
voluntary conversion by a holder of Convertible Notes; provided that if Counterparty
has validly designated a redemption date for the Convertible Notes pursuant to the
terms of the Indenture the Cash Settlement Averaging Period shall be the 25 consecutive
Valid Days commencing on and including the 27th Scheduled Valid Day immediately
preceding such redemption date.

	 	 	 	Settlement Date: For any Exercisable Options relating to the conversion of the Convertible
Notes, the settlement date for Shares to be delivered under such Convertible Notes
under the terms of the Indenture.

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

	 	 	 	Failure to Deliver: Applicable

3. Additional Terms applicable to the Transaction:

Adjustments applicable to the Transaction:

	 	 	 	Potential Adjustment Events: Notwithstanding Section 9.1(e) of the Equity Definitions, a
“Potential Adjustment Event” means any occurrence of any event or condition, as set forth
in Section 12.02 of the Indenture that would result in an adjustment to the Conversion Rate
of the Convertible Notes; provided that in no event shall there be any adjustment hereunder
as a result of an adjustment to the Conversion Rate pursuant to Section 12.02(i), Section
12.03 or Section 12.04 of the Indenture.

	 	 	 	Method of Adjustment: Calculation Agent Adjustment, and means that, notwithstanding Section
9.1(c) of the Equity Definitions, upon any adjustment to the Conversion Rate of the
Convertible Notes pursuant to the Indenture (other than Sections 12.02(i), 12.03 and 12.04
of the Indenture), the Calculation Agent will make a corresponding adjustment to any one or
more of the Strike Price, Number of Options, the Option Entitlement and any other variable
relevant to the exercise, settlement or payment for the Transaction to the extent any
adjustment to the Conversion Rate is not already fully reflected in the Option Entitlement.

Extraordinary Events applicable to the Transaction:

	 	 	 	Merger Events: Notwithstanding Section 9.2(a) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition set forth in Section 12.05 of the
Indenture.

	 	 	 	Consequence of Merger Events: Notwithstanding Section 9.3 of the Equity Definitions, upon
the occurrence of a Merger Event, the Calculation Agent shall make a corresponding
adjustment in respect of any adjustment under the Indenture to any one or more of the
nature of the Shares, Strike Price, Number of Options, the Option Entitlement and any
other variable relevant to the exercise, settlement or payment for the Transaction;
provided however that such adjustment shall (a) assume that, in the case of a “Public
Acquirer Change of Control” (as defined in the Indenture), Counterparty does not make
the election provided in Section 12.04 of the Indenture and (b) be made without regard
to any adjustment to the Conversion Rate for the issuance of additional shares as set
forth in Section 12.03 of the Indenture.

4. Calculation Agent: JPMorgan.

5. Account Details:

	 	(a)	 	Account for payments to Counterparty:

Comerica Bank

ABA# 072-000-096

Acct Name: Group 1 Automotive

Acct No.: 1850-796648

Account for delivery of Shares to Counterparty:

Mr. Cory McQuillen

Broker/Dealer Services

Mellon Investor Services, LLC

85 Challenger Rd.

Ridgefield Park, NJ 07660

Group 1 Automotive, Inc.

CUSIP 398905109

Mellon Securities DTC# 0352

	 	(b)	 	Account for payments to JPMorgan:

JPMorgan Chase Bank, National Association, New York

ABA: 021 000 021

Favour: JPMorgan Chase Bank, National Association – London

A/C: 0010962009 CHASUS33

Account for delivery of Shares from JPMorgan:

DTC 0060

6. Offices:

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

The Office of JPMorgan for the Transaction is: New York

JPMorgan Chase Bank, National Association

London Branch

P.O. Box 161

60 Victoria Embankment

London EC4Y 0JP

England

7. Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:

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

	 	(b)	 	Address for notices or communications to JPMorgan:

	 	 	 	 	 
	JPMorgan Chase Bank, National Association

	277 Park Avenue, 11th Floor

	New York, NY 10172
Attention: Nathan Lulek
EDG Corporate Marketing
Telephone No.:
	 	 	(212) 622-2262	 
	Facsimile No.:
	 	 	(212) 622-8091	 

8. Representations and Warranties of Counterparty

The representations and warranties of Counterparty set forth in Section 4 of the Purchase Agreement
(the “Purchase Agreement”) dated as of the Trade Date between Counterparty and the Initial
Purchasers named therein are true and correct and are hereby deemed to be repeated to JPMorgan as
if set forth herein. Counterparty hereby further represents and warrants to JPMorgan that:

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

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

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

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

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

	 	(A)	 	Counterparty has total assets in excess of USD10,000,000;

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

	 	(C)	 	Counterparty has a net worth in excess of USD1,000,000 and
has entered into this Agreement in connection with the conduct of
Counterparty’s business or to manage the risk associated with an asset or
liability owned or incurred or reasonably likely to be owned or incurred by
Counterparty in the conduct of Counterparty’s business.

	 	(e)	 	Each of it and its affiliates is not, on the date hereof, in possession of
any material non-public information with respect to Counterparty.

9. Other Provisions:

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

	 	(b)	 	Amendment. If the Initial Purchaser to the Purchase Agreement
exercises its right to purchase additional Convertible Notes as set forth therein,
then, at the discretion of Counterparty, JPMorgan and Counterparty will either enter
into a new confirmation or amend this Confirmation to provide for such increase in
Convertible Notes (but on pricing terms acceptable to JPMorgan and Counterparty) (such
additional confirmation or amendment to this Confirmation to provide for the payment
by Counterparty to JPMorgan of the additional premium related thereto).

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

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

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

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

	 	(g)	 	Board Authorization. Each of this Transaction and the issuance of
the Convertible Notes was approved by its board of directors and publicly announced,
solely for the purposes stated in such board resolution and public disclosure and,
prior to any exercise of Options hereunder, Counterparty’s board of directors will
have duly authorized any repurchase of Shares pursuant to this Transaction.
Counterparty further represents that there is no internal policy, whether written or
oral, of Counterparty that would prohibit Counterparty from entering into any aspect
of this Transaction, including, but not limited to, the purchases of Shares to be made
pursuant hereto.

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

	 	(i)	 	Staggered Settlement. JPMorgan may, by notice to Counterparty on or
prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the
Shares on two or more dates (each, a “Staggered Settlement Date”) as follows:

	 	(a)	 	in such notice, JPMorgan will specify to Counterparty the
related Staggered Settlement Dates (the first of which will be such Nominal
Settlement Date and the last of which will be no later than the twentieth
(20th) Exchange Business Day following such Nominal Settlement
Date) and the number of Shares that it will deliver on each Staggered
Settlement Date on a payment versus delivery basis. For the avoidance of
doubt, JPMorgan may make multiple deliveries of Shares on each such Staggered
Settlement Date;

	 	(b)	 	the aggregate number of Shares that JPMorgan will deliver to
Counterparty hereunder on all such Staggered Settlement Dates will equal the
number of Shares that JPMorgan would otherwise be required to deliver on such
Nominal Settlement Date; and

	 	(c)	 	if the Net Share Settlement terms set forth above were to
apply on the Nominal Settlement Date, then the Net Share Settlement terms will
apply on each Staggered Settlement Date, except that the Net Shares will be
allocated among such Staggered Settlement Dates as specified by JPMorgan in
the notice referred to in clause (a) above.

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

	 	(k)	 	Early Unwind. In the event the sale of Convertible Notes is not
consummated with the Initial Purchaser for any reason or Counterparty fails to deliver
to JPMorgan opinions of counsel to Counterparty as required pursuant to Section 9(a)
by the close of business in New York on June 26, 2006 (or such later date as agreed
upon by the parties) (June 26, 2006 or such later date as agreed upon being the “Early
Unwind Date”), this Transaction shall automatically terminate (the “Early Unwind”), on
the Early Unwind Date and (i) the Transaction and all of the respective rights and
obligations of JPMorgan and Counterparty under the Transaction shall be cancelled and
terminated and (ii) each party shall be released and discharged by the other party
from and agrees not to make any claim against the other party with respect to any
obligations or liabilities of the other party arising out of and to be performed in
connection with the Transaction either prior to or after the Early Unwind Date;
provided that, if the sale of the Convertible Notes is not consummated with the
initial purchasers by the close of business in New York on the Early Unwind Date as a
result of a failure by Counterparty to satisfy any condition to closing contained in
Section 6 of the Purchase Agreement, Counterparty shall purchase from JPMorgan on the
Early Unwind Date all Shares, if any, purchased by JPMorgan or one or more of its
affiliates and reimburse JPMorgan for any costs or expenses (including market losses)
relating to the unwinding of its hedging activities in connection with the Transaction
(including any loss or cost incurred as a result of its terminating, liquidating,
obtaining or reestablishing any hedge or related trading position). The amount of any
such reimbursement shall be determined by JPMorgan in its sole good faith discretion.
JPMorgan shall notify Counterparty of such amount and Counterparty shall pay such
amount in immediately available funds on the Early Unwind Date. JPMorgan and
Counterparty represent and acknowledge to the other that, subject to the proviso
included in this paragraph, upon an Early Unwind, all obligations with respect to the
Transaction shall be deemed fully and finally discharged.

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

	 	(m)	 	Additional Provisions.

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

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

(ii) Notwithstanding anything to the contrary in this Confirmation, if at any
time during the period from and including the Trade Date, to and including the
Expiration Date, the Shares cease to be listed or quoted on the Exchange (a “Share
De-listing”) for any reason (other than a Merger Event as a result of which the
 shares of common stock underlying the Options are listed or quoted on The New York
Stock Exchange, The American Stock Exchange or the NASDAQ National Market (or
their respective successors) (the “Successor Exchange”)) and are not immediately
re-listed or quoted as of the date of such de-listing on the Successor Exchange,
(1) JPMorgan shall have the right to designate such Share De-listing an Additional
Termination Event and designate an Early Termination Date pursuant to Section
6(b) of the Agreement, and (2) Counterparty shall be deemed the sole Affected
Party and the Transaction shall be deemed the sole Affected Transaction.

(iii) Counterparty covenants and agrees that, as promptly as practicable
following the public announcement of any consolidation, merger and binding share
exchange to which Counterparty is a party, or any sale of all or substantially all
of Counterparty’s assets, in each case pursuant to which the Shares will be
converted into cash, securities or other property, Counterparty shall notify
JPMorgan in writing of the types and amounts of consideration that holders of
Shares have elected to receive upon consummation of such transaction or event (the
date of such notification, the “Consideration Notification Date”); provided that
in no event shall the Consideration Notification Date be later than the date on
which such transaction or event is consummated.

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

	 	 	 	Share Termination Alternative: Applicable and means that JPMorgan
shall deliver to Counterparty the Share Termination Delivery Property on the
date when the Payment Obligation would otherwise be due pursuant to Section
9.7 of the Equity Definitions or Section 6(d)(ii) and 6(e) of the Agreement,
as applicable (the “Share Termination Payment Date”), in satisfaction of the
Payment Obligation in the manner reasonably requested by Counterparty free of
payment.

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

	 	 	 	Share Termination Unit Price: The market value of property
contained in one Share Termination Delivery Unit on the date such Share
Termination Delivery Units are to be delivered as Share Termination Delivery
Property, as determined by the Calculation Agent in its discretion by
commercially reasonable means and notified by the Calculation Agent to
JPMorgan at the time of notification of the Payment Obligation.

	 	 	 	Share Termination Delivery Unit: One Share or, if a Merger Event
has occurred and a corresponding adjustment to this Transaction has been made,
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
Merger Event, as determined by the Calculation Agent.

	 	 	 	Failure to Deliver: Applicable

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

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

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

	 	(q)	 	Registration. Counterparty hereby agrees that if, in the good faith
reasonable judgment of JPMorgan, the Shares (“Hedge Shares”) acquired by JPMorgan for
the purpose of hedging its obligations pursuant to this Transaction cannot be sold in
the public market by JPMorgan without registration under the Securities Act,
Counterparty shall, at its election, either (i) in order to allow JPMorgan to sell the
Hedge Shares in a registered offering, make available to JPMorgan an effective
registration statement under the Securities Act and enter into an agreement, in form
and substance satisfactory to JPMorgan, substantially in the form of an underwriting
agreement for a registered secondary offering; provided however, that if JPMorgan, in
its sole reasonable discretion, is not satisfied with access to due diligence
materials, the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii) or
clause (iii) of this paragraph shall apply at the election of Counterparty, (ii) in
order to allow JPMorgan to sell the Hedge Shares in a private placement, enter into a
private placement agreement substantially similar to private placement purchase
agreements customary for private placements of equity securities, in form and
substance satisfactory to JPMorgan (in which case, the Calculation Agent shall make
any adjustments to the terms of this Transaction which are necessary, in its
reasonable judgment, to compensate JPMorgan for any discount from the public market
price of the Shares incurred on the sale of Hedge Shares in a private placement), or
(iii) purchase the Hedge Shares from JPMorgan at the Closing Price on such Trading
Days, and in the amounts, requested by JPMorgan.

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

	 	(s)	 	Right to Extend. JPMorgan may delay any Settlement Date or any other
date of delivery by JPMorgan for not more than ten Exchange Business Days, with
respect to some or all of the Options hereunder, if JPMorgan reasonably determines, in
its discretion, that such extension is reasonably necessary to enable JPMorgan to
effect purchases of Shares in connection with its hedging activity hereunder in a
manner that would be in compliance with applicable legal and regulatory requirements.

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

	 	(u)	 	Securities Contract; Swap Agreement. The parties hereto intend for:
(a) the Transaction to be a “securities contract” and a “swap agreement” as defined in
the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and
the parties hereto to be entitled to the protections afforded by, among other
Sections, Sections 362(b)(6), 555 and 560 of the Bankruptcy Code; (b) a party’s right
to liquidate the Transaction and to exercise any other remedies upon the occurrence of
any Event of Default under the Agreement with respect to the other party to constitute
a “contractual right” as described in the Bankruptcy Code; (c) any cash, securities or
other property provided as performance assurance, credit support or collateral with
respect to the Transaction to constitute “margin payments” and “transfers” under a
“swap agreement” as defined in the Bankruptcy Code; and (d) all payments for, under or
in connection with the Transaction, all payments for the Shares and the transfer of
such Shares to constitute “settlement payments” and “transfers” under a “swap
agreement” as defined in the Bankruptcy Code.

	 	(v)	 	No Collateral or Setoff. Notwithstanding any provision of the
Agreement or any other agreement between the parties to the contrary, the obligations
of Counterparty hereunder are not secured by any collateral. Obligations under the
Transaction shall not be set off against any other obligations of the parties, whether
arising under the Agreement, this Confirmation, under any other agreement between the
parties hereto, by operation of law or otherwise, and no other obligations of the
parties shall be set off against obligations under the Transaction, whether arising
under the Agreement, this Confirmation, under any other agreement between the parties
hereto, by operation of law or otherwise, and each party hereby waives any such right
of setoff.

(a)

1

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

Very truly yours,

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

By:/s/ Sudheer Tegulapalle 

Authorized Signatory

Name: Sudheer Tegulapalle

Accepted and confirmed

as of the Trade Date:

GROUP 1 AUTOMOTIVE, INC.

By:/s/ John C. Rickel     

Authorized Signatory

Name: John C. Rickel

2EX-4.5

	 	 	Bank of America, N.A.

	 	 	c/o Banc of America Securities LLC

	9	 	West 57th Street

	 	 	New York, NY 10019

June 20, 2006

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

	Facsimile No.:(713) 647-5858

	Re:
	 	Call Option Transaction

	 
	 	(Transaction Reference Number:  22955)

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

The definitions and provisions contained in the 1996 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms used
herein have the meanings assigned to them in the Offering Memorandum dated June 20, 2006 (the
“Offering Memorandum”) relating to the USD 250,000,000 principal amount of 2.25% convertible senior
notes due 2036, (the “Convertible Notes” and each USD 1,000 principal amount of Convertible Notes,
a “Convertible Note”) issued by Counterparty pursuant to an Indenture to be dated June 26, 2006
between Counterparty and Wells Fargo Bank, N.A., as trustee (the “Indenture”). In the event of any
inconsistency between the terms defined in the Offering Memorandum, the Indenture and this
Confirmation, this Confirmation shall govern.

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

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

General Terms:

	 	 	 	Trade Date: June 20, 2006

	 	 	 	Option Style: “Modified American”, as set forth under “Exercise and Valuation” below

	 	 	 
	Option Type:

	 	Call
	 
	 	 
	Buyer:

	 	Counterparty
	 
	 	 
	Seller:

	 	BofA

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

	 	 	 	Number of Options: 150,000. For the avoidance of doubt, the Number of Options shall be
reduced by any Options exercised by Counterparty. In no event will the Number of
Options be less than zero.

	 	 	 	Option Entitlement: As of any date, a number equal to the Conversion Rate as of such date (as
defined in the Indenture, but without regard to any adjustments to the Conversion Rate
pursuant to Section 12.02(i), Section 12.03 or to Section 12.04 of the Indenture), for
each Convertible Note.

	 	 	 
	Strike Price:

	 	USD 59.4294
	 
	 	 
	Premium:

	 	USD 60,381,000
	 
	 	 
	Premium Payment Date:

	 	June 26, 2006
	 
	 	 
	Exchange:

	 	The New York Stock Exchange

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

Exercise and Valuation:

	 	 	 	Exercise Period(s): Notwithstanding the Equity Definitions, the Exercise Period shall be, in
respect of the Exercisable Options (as defined below), each period commencing from the
date a notice of conversion is submitted to Counterparty by a holder of Convertible
Notes to and including the Exchange Business Day immediately preceding the first day of
the Cash Settlement Averaging Period; provided that if Counterparty has validly
designated a redemption date for the Convertible Notes pursuant to the terms of the
Indenture, there shall be a single Exercise Period for Exercisable Options with respect
to any Convertible Notes so called for redemption and surrendered for conversion
following Counterparty’s notice of such redemption and the final day of the Exercise
Period shall be the Exchange Business Day immediately preceding the designated
redemption date; provided further that if by April 29, 2016 Counterparty has not
specified June 15, 2016 as a redemption date for the Convertible Notes pursuant to the
terms of the Indenture, notices of conversion received by Counterparty from holders of
Convertible Notes following the date that is 29 Scheduled Valid Days prior to June 15,
2016 shall not result in the commencement of an Exercise Period and no Exercisable
Options will be exercised or deemed exercised in respect of such notices of conversion
of Convertible Notes.

	 	 	 	Exercisable Options: In respect of each Exercise Period, a number of Options equal to the
number of Convertible Notes surrendered to Counterparty for conversion with respect to
such Exercise Period but no greater than the Number of Options.

Expiration Time: The Valuation Time

	 	 	 	Expiration Date: June 15, 2016, subject to earlier exercise and subject to the second proviso
in the definition of Exercise Period above.

	 	 	 	Multiple Exercise: Applicable, as described under Exercisable Options above.

	 	 	 	Automatic Exercise: Applicable; and means that, in respect of an Exercise Period, a number of
Options not previously exercised hereunder equal to the Exercisable Options shall be
deemed to be exercised on the Expiration Date for such Exercisable Options; provided
that such Options shall be deemed exercised only to the extent that Counterparty has
provided a Notice of Exercise to BofA.

	 	 	 	Notice of Exercise: Notwithstanding anything to the contrary in the Equity Definitions, in
order to exercise any Options, Counterparty must notify BofA (in writing and orally) at
least one Exchange Business Day prior to the first day of the Cash Settlement Averaging
Period for the Options being exercised of (i) the number of such Options and (ii) the
first day of the Cash Settlement Averaging Period and the Settlement Date; provided that
if Counterparty has:

(A) designated June 15, 2016 as a redemption date
for the Convertible Notes pursuant to the terms of
the Indenture, such notice may be given on or prior
to the Exchange Business Day immediately preceding
the Expiration Date for the Exercisable Options
corresponding to the Convertible Notes for which a
redemption date has been specified and need only
specify the number of such Exercisable Options; and

(B) designated a redemption date that is prior to
June 15, 2016 for the Convertible Notes pursuant to
the terms of the Indenture, (x) Counterparty must, on
or prior to the last day on which Counterparty is
permitted to validly designate such date as a
redemption date pursuant to the terms of the
Indenture, notify BofA (in writing and orally) of (1)
the number of Convertible Notes being redeemed and
(2) the redemption date for the Convertible Notes
that are being redeemed; and (y) the Notice of
Exercise may be given on or prior to the Exchange
Business Day immediately preceding such redemption
date, specifying the number of such Exercisable
Options.

	 	 	 	Valuation Time: At the close of trading of the regular trading session on the Exchange
without regard to any extended trading session.

	 	 	 	Market Disruption Event: Notwithstanding Section 4.3 of the Equity Definitions, Market
Disruption Event means a failure by the primary United States national securities
exchange or market on which the Shares are listed or admitted to trading to open for
trading during its regular trading session or the occurrence or existence prior to 1:00
p.m. on any Scheduled Valid Day for the Shares for an aggregate one half hour period of
any suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the stock exchange or otherwise) in the Shares or in any
options, contracts or future contracts relating to the Shares.

Settlement Terms:

	 	 	 	Settlement Method: Net Share Settlement

	 	 	 	Net Share Settlement: BofA will deliver to Counterparty, on the Settlement Date, a
number of Shares equal to the Net Shares in respect of an Option exercise. In no event
will the Net Shares be less than zero.

	 	 	 	Net Shares: In respect of any Option exercised or deemed exercised, for each
Option, a number of Shares equal to (i) the Option Entitlement multiplied by (ii) the
sum of the quotients, for each Valid Day during the Cash Settlement Averaging Period
for such Option, of (A) the Relevant Price on such Valid Day less the Strike Price,
divided by (B) such Relevant Price, divided by (iii) 25; provided, however, that if
the calculation contained in clause (A) above results in a negative number, such number
shall be replaced with the number “zero”.

BofA will deliver cash in lieu of any fractional
Shares to be delivered with respect to any Net Shares
to be delivered hereunder valued at the Relevant
Price for the last Valid Day of the Cash Settlement
Averaging Period.

	 	 	 	Valid Day: A day during which (a) trading in the Shares generally occurs on the
primary United States national securities exchange or market on which the Shares are
listed or admitted to trading and (b) there is no Market Disruption Event.

	 	 	 	Scheduled Valid Day: A day that is scheduled to be a Valid Day on the primary United States
national securities exchange or market on which the Shares are listed or admitted to
trading.

	 	 	 	Relevant Price: In respect of any Option exercised or deemed exercised, the per Share
volume-weighted average price for each of the 25 consecutive Valid Days in any Cash
Settlement Averaging Period as displayed under the heading “Bloomberg VWAP” on Bloomberg
page GPI.N <equity> AQR (or any successor thereto) in respect of the period from
9:30 a.m. to 4:00 p.m. (New York City time) on such Valid Day (or if such
volume-weighted average price is unavailable, the market value of one Share on such
Valid Day, as determined by the Calculation Agent using a volume-weighted method).

	 	 	 	Cash Settlement Averaging Period: For any Exercisable Options relating to the
conversion of Convertible Notes, the 25 consecutive Valid Days commencing on and
including the second Valid Day following the receipt by Counterparty of a notice of
voluntary conversion by a holder of Convertible Notes; provided that if Counterparty
has validly designated a redemption date for the Convertible Notes pursuant to the
terms of the Indenture the Cash Settlement Averaging Period shall be the 25 consecutive
Valid Days commencing on and including the 27th Scheduled Valid Day immediately
preceding such redemption date.

	 	 	 	Settlement Date: For any Exercisable Options relating to the conversion of the Convertible
Notes, the settlement date for Shares to be delivered under such Convertible Notes
under the terms of the Indenture.

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

	 	 	 	Failure to Deliver: Applicable

3. Additional Terms applicable to the Transaction:

Adjustments applicable to the Transaction:

	 	 	 	Potential Adjustment Events: Notwithstanding Section 9.1(e) of the Equity Definitions, a
“Potential Adjustment Event” means any occurrence of any event or condition, as set forth
in Section 12.02 of the Indenture that would result in an adjustment to the Conversion Rate
of the Convertible Notes; provided that in no event shall there be any adjustment hereunder
as a result of an adjustment to the Conversion Rate pursuant to Section 12.02(i), Section
12.03 or Section 12.04 of the Indenture.

	 	 	 	Method of Adjustment: Calculation Agent Adjustment, and means that, notwithstanding Section
9.1(c) of the Equity Definitions, upon any adjustment to the Conversion Rate of the
Convertible Notes pursuant to the Indenture (other than Sections 12.02(i), 12.03 and 12.04
of the Indenture), the Calculation Agent will make a corresponding adjustment to any one or
more of the Strike Price, Number of Options, the Option Entitlement and any other variable
relevant to the exercise, settlement or payment for the Transaction to the extent any
adjustment to the Conversion Rate is not already fully reflected in the Option Entitlement.

Extraordinary Events applicable to the Transaction:

	 	 	 	Merger Events: Notwithstanding Section 9.2(a) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition set forth in Section 12.05 of the
Indenture.

	 	 	 	Consequence of Merger Events: Notwithstanding Section 9.3 of the Equity Definitions, upon
the occurrence of a Merger Event, the Calculation Agent shall make a corresponding
adjustment in respect of any adjustment under the Indenture to any one or more of the
nature of the Shares, Strike Price, Number of Options, the Option Entitlement and any
other variable relevant to the exercise, settlement or payment for the Transaction;
provided however that such adjustment shall (a) assume that, in the case of a “Public
Acquirer Change of Control” (as defined in the Indenture), Counterparty does not make
the election provided in Section 12.04 of the Indenture and (b) be made without regard
to any adjustment to the Conversion Rate for the issuance of additional shares as set
forth in Section 12.03 of the Indenture.

4. Calculation Agent: BofA.

5. Account Details:

	 	(a)	 	Account for payments to Counterparty:

Comerica Bank

ABA# 072-000-096

Acct Name: Group 1 Automotive

Acct No.: 1850-796648

Account for delivery of Shares to Counterparty:

Mr. Cory McQuillen

Broker/Dealer Services

Mellon Investor Services, LLC

85 Challenger Rd.

Ridgefield Park, NJ 07660

Group 1 Automotive, Inc.

CUSIP 398905109

Mellon Securities DTC# 0352

	 	(b)	 	Account for payments to BofA:

Bank of America, N.A.

San Francisco, CA

SWIFT: BOFAUS65

Bank Routing: 121-000-358

Account Name: Bank of America

Account No: 12333-34172

Account for delivery of Shares from BofA:

DTC 0773

Acct Name: Bank of America NA

Acct #: 116-00777

6. Offices:

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

The Office of BofA for the Transaction is: Charlotte

Bank of America, N.A.

c/o Banc of America Securities LLC

Equity Financial Products

9 West 57th Street, 40th Floor

New York, NY 10019

Telephone No: 212-583-8373

Facsimile No: 212-847-5124

7. Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:

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

(b) Address for notices or communications to BofA:

Bank of America, N.A.

c/o Banc of America Securities LLC

Equity Financial Products

9 West 57th Street, 40th Floor

New York, NY 10019

Telephone No: 212-583-8373

Facsimile No: 212-847-5124

8. Representations and Warranties of Counterparty

The representations and warranties of Counterparty set forth in Section 4 of the Purchase Agreement
(the “Purchase Agreement”) dated as of the Trade Date between Counterparty and the Initial
Purchasers named therein are true and correct and are hereby deemed to be repeated to BofA as if
set forth herein. Counterparty hereby further represents and warrants to BofA that:

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

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

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

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

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

	 	(A)	 	Counterparty has total assets in excess of USD10,000,000;

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

	 	(C)	 	Counterparty has a net worth in excess of USD1,000,000 and
has entered into this Agreement in connection with the conduct of
Counterparty’s business or to manage the risk associated with an asset or
liability owned or incurred or reasonably likely to be owned or incurred by
Counterparty in the conduct of Counterparty’s business.

	 	(e)	 	Each of it and its affiliates is not, on the date hereof, in possession of
any material non-public information with respect to Counterparty.

9. Other Provisions:

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

	 	(b)	 	Amendment. If the Initial Purchaser to the Purchase Agreement
exercises its right to purchase additional Convertible Notes as set forth therein,
then, at the discretion of Counterparty, BofA and Counterparty will either enter into
a new confirmation or amend this Confirmation to provide for such increase in
Convertible Notes (but on pricing terms acceptable to BofA and Counterparty) (such
additional confirmation or amendment to this Confirmation to provide for the payment
by Counterparty to BofA of the additional premium related thereto).

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

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

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

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

	 	(g)	 	Board Authorization. Each of this Transaction and the issuance of
the Convertible Notes was approved by its board of directors and publicly announced,
solely for the purposes stated in such board resolution and public disclosure and,
prior to any exercise of Options hereunder, Counterparty’s board of directors will
have duly authorized any repurchase of Shares pursuant to this Transaction.
Counterparty further represents that there is no internal policy, whether written or
oral, of Counterparty that would prohibit Counterparty from entering into any aspect
of this Transaction, including, but not limited to, the purchases of Shares to be made
pursuant hereto.

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

	 	(i)	 	Staggered Settlement. BofA may, by notice to Counterparty on or
prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the
Shares on two or more dates (each, a “Staggered Settlement Date”) as follows:

	 	(a)	 	in such notice, BofA will specify to Counterparty the related
Staggered Settlement Dates (the first of which will be such Nominal Settlement
Date and the last of which will be no later than the twentieth
(20th) Exchange Business Day following such Nominal Settlement
Date) and the number of Shares that it will deliver on each Staggered
Settlement Date on a payment versus delivery basis. For the avoidance of
doubt, BofA may make multiple deliveries of Shares on each such Staggered
Settlement Date;

	 	(b)	 	the aggregate number of Shares that BofA will deliver to
Counterparty hereunder on all such Staggered Settlement Dates will equal the
number of Shares that BofA would otherwise be required to deliver on such
Nominal Settlement Date; and

	 	(c)	 	if the Net Share Settlement terms set forth above were to
apply on the Nominal Settlement Date, then the Net Share Settlement terms will
apply on each Staggered Settlement Date, except that the Net Shares will be
allocated among such Staggered Settlement Dates as specified by BofA in the
notice referred to in clause (a) above.

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

	 	(k)	 	Early Unwind. In the event the sale of Convertible Notes is not
consummated with the Initial Purchaser for any reason or Counterparty fails to deliver
to BofA opinions of counsel to Counterparty as required pursuant to Section 9(a) by
the close of business in New York on June 26, 2006 (or such later date as agreed upon
by the parties) (June 26, 2006 or such later date as agreed upon being the “Early
Unwind Date”), this Transaction shall automatically terminate (the “Early Unwind”), on
the Early Unwind Date and (i) the Transaction and all of the respective rights and
obligations of BofA and Counterparty under the Transaction shall be cancelled and
terminated and (ii) each party shall be released and discharged by the other party
from and agrees not to make any claim against the other party with respect to any
obligations or liabilities of the other party arising out of and to be performed in
connection with the Transaction either prior to or after the Early Unwind Date;
provided that, if the sale of the Convertible Notes is not consummated with the
initial purchasers by the close of business in New York on the Early Unwind Date as a
result of a failure by Counterparty to satisfy any condition to closing contained in
Section 6 of the Purchase Agreement, Counterparty shall purchase from BofA on the
Early Unwind Date all Shares, if any, purchased by BofA or one or more of its
affiliates and reimburse BofA for any costs or expenses (including market losses)
relating to the unwinding of its hedging activities in connection with the Transaction
(including any loss or cost incurred as a result of its terminating, liquidating,
obtaining or reestablishing any hedge or related trading position). The amount of any
such reimbursement shall be determined by BofA in its sole good faith discretion.
BofA shall notify Counterparty of such amount and Counterparty shall pay such amount
in immediately available funds on the Early Unwind Date. BofA and Counterparty
represent and acknowledge to the other that, subject to the proviso included in this
paragraph, upon an Early Unwind, all obligations with respect to the Transaction shall
be deemed fully and finally discharged.

	 	(l)	 	Additional Provisions.

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

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

(ii) Notwithstanding anything to the contrary in this Confirmation, if at any
time during the period from and including the Trade Date, to and including the
Expiration Date, the Shares cease to be listed or quoted on the Exchange (a “Share
De-listing”) for any reason (other than a Merger Event as a result of which the
 shares of common stock underlying the Options are listed or quoted on The New York
Stock Exchange, The American Stock Exchange or the NASDAQ National Market (or
their respective successors) (the “Successor Exchange”)) and are not immediately
re-listed or quoted as of the date of such de-listing on the Successor Exchange,
(1) BofA shall have the right to designate such Share De-listing an Additional
Termination Event and designate an Early Termination Date pursuant to Section
6(b) of the Agreement, and (2) Counterparty shall be deemed the sole Affected
Party and the Transaction shall be deemed the sole Affected Transaction.

(iii) Counterparty covenants and agrees that, as promptly as practicable
following the public announcement of any consolidation, merger and binding share
exchange to which Counterparty is a party, or any sale of all or substantially all
of Counterparty’s assets, in each case pursuant to which the Shares will be
converted into cash, securities or other property, Counterparty shall notify BofA
in writing of the types and amounts of consideration that holders of Shares have
elected to receive upon consummation of such transaction or event (the date of
such notification, the “Consideration Notification Date”); provided that in no
event shall the Consideration Notification Date be later than the date on which
such transaction or event is consummated.

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

	 	 	 	Share Termination Alternative: Applicable and means that BofA
shall deliver to Counterparty the Share Termination Delivery Property on the
date when the Payment Obligation would otherwise be due pursuant to Section
9.7 of the Equity Definitions or Section 6(d)(ii) and 6(e) of the Agreement,
as applicable (the “Share Termination Payment Date”), in satisfaction of the
Payment Obligation in the manner reasonably requested by Counterparty free of
payment.

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

	 	 	 	Share Termination Unit Price: The market value of property
contained in one Share Termination Delivery Unit on the date such Share
Termination Delivery Units are to be delivered as Share Termination Delivery
Property, as determined by the Calculation Agent in its discretion by
commercially reasonable means and notified by the Calculation Agent to BofA at
the time of notification of the Payment Obligation.

	 	 	 	Share Termination Delivery Unit: One Share or, if a Merger Event
has occurred and a corresponding adjustment to this Transaction has been made,
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
Merger Event, as determined by the Calculation Agent.

	 	 	 	Failure to Deliver: Applicable

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

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

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

	 	(p)	 	Registration. Counterparty hereby agrees that if, in the good faith
reasonable judgment of BofA, the Shares (“Hedge Shares”) acquired by BofA for the
purpose of hedging its obligations pursuant to this Transaction cannot be sold in the
public market by BofA without registration under the Securities Act, Counterparty
shall, at its election, either (i) in order to allow BofA to sell the Hedge Shares in
a registered offering, make available to BofA an effective registration statement
under the Securities Act and enter into an agreement, in form and substance
satisfactory to BofA, substantially in the form of an underwriting agreement for a
registered secondary offering; provided however, that if BofA, in its sole reasonable
discretion, is not satisfied with access to due diligence materials, the results of
its due diligence investigation, or the procedures and documentation for the
registered offering referred to above, then clause (ii) or clause (iii) of this
paragraph shall apply at the election of Counterparty, (ii) in order to allow BofA to
sell the Hedge Shares in a private placement, enter into a private placement agreement
substantially similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance satisfactory to BofA (in which
case, the Calculation Agent shall make any adjustments to the terms of this
Transaction which are necessary, in its reasonable judgment, to compensate BofA for
any discount from the public market price of the Shares incurred on the sale of Hedge
Shares in a private placement), or (iii) purchase the Hedge Shares from BofA at the
Closing Price on such Trading Days, and in the amounts, requested by BofA.

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

	 	(r)	 	Right to Extend. BofA may delay any Settlement Date or any other
date of delivery by BofA for not more than ten Exchange Business Days, with respect to
some or all of the Options hereunder, if BofA reasonably determines, in its
discretion, that such extension is reasonably necessary to enable BofA to effect
purchases of Shares in connection with its hedging activity hereunder in a manner that
would be in compliance with applicable legal and regulatory requirements.

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

	 	(t)	 	Securities Contract; Swap Agreement. The parties hereto intend for:
(a) the Transaction to be a “securities contract” and a “swap agreement” as defined in
the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and
the parties hereto to be entitled to the protections afforded by, among other
Sections, Sections 362(b)(6), 555 and 560 of the Bankruptcy Code; (b) a party’s right
to liquidate the Transaction and to exercise any other remedies upon the occurrence of
any Event of Default under the Agreement with respect to the other party to constitute
a “contractual right” as described in the Bankruptcy Code; (c) any cash, securities or
other property provided as performance assurance, credit support or collateral with
respect to the Transaction to constitute “margin payments” and “transfers” under a
“swap agreement” as defined in the Bankruptcy Code; and (d) all payments for, under or
in connection with the Transaction, all payments for the Shares and the transfer of
such Shares to constitute “settlement payments” and “transfers” under a “swap
agreement” as defined in the Bankruptcy Code.

	 	(u)	 	No Collateral or Setoff. Notwithstanding any provision of the
Agreement or any other agreement between the parties to the contrary, the obligations
of Counterparty hereunder are not secured by any collateral. Obligations under the
Transaction shall not be set off against any other obligations of the parties, whether
arising under the Agreement, this Confirmation, under any other agreement between the
parties hereto, by operation of law or otherwise, and no other obligations of the
parties shall be set off against obligations under the Transaction, whether arising
under the Agreement, this Confirmation, under any other agreement between the parties
hereto, by operation of law or otherwise, and each party hereby waives any such right
of setoff.

(a)

1

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

Yours faithfully,

Bank of America, N.A.

By: /s/ Eric P. Hembleton

Authorized Signatory: Eric P. Hembleton

Title: Authorized Signatory

Agreed and Accepted

as of the Trade Date:

Group 1 Automotive, Inc.

By:/s/ John C. Rickel     

Authorized Signatory

Name: John C. Rickel

2

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