Document:

Amendment No. 1 to Credit Agreement and Waiver, dated as of May 25, 2007

 Exhibit 4.1 
 AMENDMENT NO. 1 TO CREDIT AGREEMENT AND WAIVER 
 This Amendment and Waiver (this
“Amendment”) is entered into as of May 25, 2007 by and among Argonaut Group, Inc., a Delaware corporation (the “Borrower”), JPMorgan Chase Bank, N. A., individually and as administrative agent (the “Administrative
Agent”), and the other financial institutions signatory hereto. 
 RECITALS 
 A. The Borrower, the Administrative Agent and the Lenders are party to that certain credit agreement dated as of March 6, 2006 (the “Credit
Agreement”). Unless otherwise specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them by the Credit Agreement. 
 B. It is contemplated that (i) the Borrower will merge (the “Merger”) with PXMS Inc., a newly formed wholly-owned Delaware subsidiary of PXRE Group Ltd. (“PXRE”), (ii) the Borrower will
be the surviving entity of the Merger, (iii) as a result of the Merger the Borrower will become a wholly-owned subsidiary of PXRE and the shareholders of the Borrower immediately prior to the Merger will become entitled to receive common shares
in PXRE and will own approximately 70% of the aggregate common shares of PXRE, and (iv) prior to the Merger the Borrower will pay a cash dividend to its shareholders in the aggregate amount of $60,000,000 (the “Dividend”), which
Dividend will be funded out of a drawing under the revolving credit facility established by the Credit Agreement. 
 C. The Borrower, the
Administrative Agent and the undersigned Lenders wish to amend the Credit Agreement and waive certain provisions thereof on the terms and conditions set forth below in connection with the Merger and the Dividend. 
 Now, therefore, in consideration of the mutual execution hereof and other good and valuable consideration, the parties hereto agree as follows:

 1. Amendment to Credit Agreement. Upon the “Effective Date” (as defined below), the Credit Agreement shall be amended as
follows: 
         (a) The definitions of “Borrower”, “Change of
Control” and “Material Indebtedness” in Article I are amended in their entirety to read as follows: 
         “Borrower” means Argonaut Group, Inc., a Delaware corporation and its successors and assigns. 
         “Change in Control” means (a) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) of Equity
Interests representing more than 30% 

 
of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent; (b) occupation of a majority of the
seats (other than vacant seats) on the board of directors of the Parent by Persons who were neither (i) nominated by the board of directors of the Parent nor (ii) appointed by directors so nominated; (c) the acquisition of direct or
indirect Control of the Parent by any Person or group; (d) except as otherwise expressly permitted under the terms of this Agreement (including a disposition permitted under Section 6.03(b)), the Borrower shall cease to own and control,
directly or indirectly, free and clear of all Liens and other encumbrances all of the economic and voting rights associated with all of the outstanding capital stock of each of the Borrower’s Insurance Subsidiaries or shall cease to have the
power, directly or indirectly, to elect all of the members of the board of directors of each of the Borrower’s Insurance Subsidiaries; or (e) after the Merger the Parent shall cease to own and control, directly or indirectly, free and
clear of all Liens and other encumbrances all of the economic and voting rights associated with all of the outstanding capital stock of the Borrower or shall cease to have the power, directly or indirectly, to elect all of the members of the board
of directors of the Borrower. 
         “Material Indebtedness”
means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower, any Subsidiary or the Parent or any of its subsidiaries, in an aggregate principal amount
exceeding $5,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of any of the parties listed above in respect of any Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that such party would be required to pay if such Swap Agreement were terminated at such time. 
         (b) The definitions of “Amendment No. 1”, “Merger” and “Parent” are added to Article I in appropriate alphabetical order reading as
follows: 
         “Amendment No. 1” means that certain
Amendment and Waiver to this Agreement, entered into as of May 25, 2007 by and among the Borrower, the Administrative Agent, and the other financial institutions signatory thereto. 
         “Merger” has the meaning ascribed to such term in Amendment No. 1.

         “Parent” means PXRE Group Ltd., a Bermuda corporation the
name of which is expected to be changed to Argo Group International Holdings, Ltd. immediately after the consummation of the Merger, if it occurs; provided that solely for purposes of the definition of Change in 

  

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Control, “Parent” shall mean (a) prior to the Merger, the Borrower and (b) after the Merger, if it occurs, PXRE Group Ltd. 
         (c) Section 2.09 is amended by (i) replacing the phrase
“Reduction/Increase” in the title thereof with the word “Reductions” and (ii) deleting Section 2.09(d) in its entirety. 
         (d) Section 5.09 is amended by replacing the phrase “BBB-” in the body thereof with the phrase “BBB+”. 
         (e) Section 6.01(h) is renumbered as Section 6.01(i) and a
replacement Section 6.01(h) is added to read as follows: 
         (h)
Indebtedness in an aggregate principal amount not to exceed $60,000,000, (i) the proceeds of which are used solely to repay Revolving Loans and (ii) which has no scheduled repayments until at least 180 days after the Maturity Date.

         (f) Section 6.04(f) is renumbered as
Section 6.04(g) and a replacement Section 6.04(f) is added to read as follows: 
         (f) an equity investment of up to $40 million in Peleus Re (which investment shall not result in Peleus Re becoming a Subsidiary). Such investment shall be made and permitted notwithstanding
any contrary provisions of Section 6.07. 
         (g) Section 6.06
is amended in its entirety to read as follows: 
         SECTION 6.06. Restricted
Payments. The Borrower will not, and will not permit any of its Subsidiaries to, declare, pay or make, or agree to declare, pay or make, directly or indirectly, any Restricted Payment, except: 
         (a) the Borrower may pay publicly announced and regularly scheduled dividends on its
issued and outstanding common stock that is traded publicly on a national securities exchange; provided, however, that no dividend shall be permitted under this clause (a) upon the occurrence and during the continuance of a Default; 

        (b) the Borrower and any Subsidiary may make any scheduled payment required in
connection with the Trust Preferred Securities permitted under Sections 6.01(c) and (d); provided, however, that no payment or dividend shall be permitted under this clause (b) upon the occurrence and during the continuance of a Default;
and 
         (c) any Subsidiary may declare and pay dividends or make distributions
to the Borrower or to a Wholly-Owned Subsidiary. 
  

 -3- 

         (h) Sections 7(d), (h), (i) and
(j) are amended in their entirety and a new Section 7(q) is added to read as follows: 
         (d) the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02, 5.03 (with respect to the Borrower’s existence), 5.08, 5.09 or 5.11
or in Article VI; 
         (h) an involuntary proceeding shall be commenced or
an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any of (A) the Borrower, (B) any Subsidiary or (C) the Parent or any of its subsidiaries, or their respective debts, or
of a substantial part of their respective assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any of (A) the Borrower, (B) any Subsidiary or (C) the Parent or any of its subsidiaries, or for a substantial part of their respective assets, and, in any such case, such proceeding or petition
shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
         (i) the Borrower, any Subsidiary, or the Parent or any of its subsidiaries shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other
relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for itself or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

         (j) any of the Borrower, any Subsidiary or the Parent or any of its
subsidiaries shall become unable, admit in writing its inability or fail generally to pay its debts as they become due; 
         (q) after the effective date of Amendment No. 1 and prior to the date thirteen (13) months after such effective date, there shall not be a period of thirty (30) consecutive days
during which the aggregate Revolving Credit Exposure on each day is zero; 
 2. Consent and Waiver. The Lenders hereby waive any
breach of Sections 6.03(a), and 6.06 of the Credit Agreement arising solely out of the consummation of the Merger and the payment of the Dividend; provided, however, that at the time of the Merger and the Dividend, respectively, in
each case both immediately before and immediately after giving effect 

  

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thereto, no Default or Unmatured Default (other than one waived hereby) shall have occurred and be continuing; and further provided that on the date the
Dividend is paid the Borrower shall have delivered to the Administrative Agent a solvency certificate in the form of Exhibit A hereto executed by its Chief Financial Officer providing evidence of the solvency of the Borrower immediately prior
to and immediately after giving effect to the Dividend. 
 3. Representations and Warranties of the Borrower. The Borrower represents
and warrants that: 
         (a) The execution, delivery and performance by the
Borrower of this Amendment have been duly authorized by all necessary corporate action. This Amendment is a legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, except as the enforcement
thereof may be subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally; 
         (b) Each of the representations and warranties contained in the Credit Agreement
(treating this Amendment as a Credit Document for purposes thereof) is true and correct in all material respects on and as of the date hereof as if made on the date hereof; 
         (c) The Merger (i) does not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect or shall be obtained or made and be in full force and effect at the time of the Merger, (ii) will not
violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (iii) will not violate or result in a default under any
indenture, agreement or other instrument binding upon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries, and (iv) will not
result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries. 
         (d) The Dividend (i) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or
made and are in full force and effect or shall be obtained or made and be in full force and effect at the time of the payment of the Dividend, (ii) will not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (iii) will not violate or result in a default under any indenture, agreement or other instrument binding upon the Borrower or any of
its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries, and (iv) will not result in the creation or imposition of any Lien on any asset of the Borrower or
any of its Subsidiaries. 
         (e) After giving effect to this Amendment, no
Default or Unmatured Default has occurred and is continuing. 
  

 -5- 

 4. Effective Date. This Amendment shall become effective upon the execution and delivery hereof by
the Borrower, the Administrative Agent and the Required Lenders (without respect to whether it has been executed and delivered by all the Lenders); provided that Sections 1 and 2 hereof shall not become effective until the date (the “Effective
Date”) when the following additional condition has also been satisfied: 
         (a) The Borrower shall have paid (i) to the Administrative Agent (for the ratable benefit of each Lender approving this amendment) an amendment fee equal to .05% of such Lender’s
Commitment, and (ii) to the Administrative Agent or its affiliates for their own account any other separately agreed fees relating hereto, which fees shall be deemed fully earned and non-refundable on the Effective Date. 
 In the event the Effective Date has not occurred on or before June 30, 2007, Sections 1 and 2 hereof shall not become operative and shall be of no force or effect.

 5. Reference to and Effect Upon the Credit Agreement. 
         (a) Except as specifically amended or waived above, the Credit Agreement shall remain in
full force and effect and is hereby ratified and confirmed. 
         (b) The
execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or any Lender under the Credit Agreement, nor constitute a waiver of any provision of the Credit
Agreement, except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar
import shall mean and be a reference to the Credit Agreement as amended hereby. 
 6. Costs and Expenses. The Borrower hereby affirms
its obligation under Section 9.03 of the Credit Agreement to reimburse the Administrative Agent for all reasonable out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation, negotiation, execution and
delivery of this Amendment, including but not limited to the reasonable fees, charges and disbursements of attorneys for the Administrative Agent with respect thereto. 
 7. Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of New York. 
 8. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purposes. 
 9. Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed an original but all
such counterparts shall constitute one and the same instrument. 
  

 -6- 

 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first above written.

  

									
	ARGONAUT GROUP, INC.	 		 	 JPMORGAN CHASE BANK, N.A.,
 individually and as Administrative Agent

					
	By:	 	  	 		 	By:	 	  
					
	Its:	 	  	 		 	Its:	 	  

  

			
	 WACHOVIA BANK, N.A., Individually and as
 Syndication Agent

		
	By	 	  
	Name:	 	
	 Title:
	 	
	
	 THE FROST NATIONAL BANK

		
	By	 	  
	Name:	 	
	 Title:
	 	
	
	 CHANG HWA COMMERCIAL BANK, LTD.

		
	By	 	  
	Name:	 	
	 Title:
	 	
	
	 HSBC BANK USA, NATIONAL ASSOCIATION

		
	By	 	  
	Name:	 	
	 Title:
	 	

  

 -7- 

 Schedule 1.01 
 PRICING SCHEDULE 
  

										
	 APPLICABLE MARGIN
 (EURODOLLAR SPREAD)
	  	LEVEL I	 	 	LEVEL II	 	 	LEVEL III	 
	 Leverage Ratio £ 20%
	  	0.450	%	 	0.500	%	 	0.600	%
	 Leverage Ratio £ 25%
	  	0.550	%	 	0.600	%	 	0.700	%
	 Leverage Ratio £ 30%
	  	0.650	%	 	0.700	%	 	0.800	%
	 Leverage Ratio £ 35%
	  	0.750	%	 	0.800	%	 	0.900	%
				
	 FACILITY FEE
	  	LEVEL I	 	 	LEVEL II	 	 	LEVEL III	 
	 Facility Fee Rate
	  	0.150	%	 	0.200	%	 	0.250	%

 “Rating” means, at any time, the rating issued by S&P and then in effect with
respect to the Borrower’s Financial Strength Rating, as determined without third-party enhancement. 
 “Level I Status” exists
at any date if, on such date, the Borrower’s Rating is A or better. 
 “Level II Status” exists at any date if, on such date,
the Borrower’s Rating is A-. 
 “Level III Status” exists at any date if, on such date, the Borrower has not qualified for
Level I Status or Level II Status. 
 “Status” means Level I Status, Level II Status and Level III Status. 
 The Applicable Rate shall be determined in accordance with the foregoing table based on the Borrower’s Status as determined from its then current Rating and the
Leverage Ratio as reflected in the then most recent Financials. The Rating in effect on any date for the purposes of this Schedule is that in effect at the close of business on such date. Adjustments, if any, to the Applicable Rate arising out of a
change in the Leverage Ratio shall be effective five Business Days after the Administrative Agent has received the applicable Financials. If the Borrower fails to deliver the Financials to the Administrative Agent at the time required pursuant to
the Credit Agreement, then the Applicable Rate shall be the highest Applicable Rate set forth in the foregoing table for the then effective Rating until five Business Days after such Financials are so delivered. Until adjusted after the effective
date of Amendment No. 1, Level II Status with a Leverage Ratio of 21% shall be deemed to exist.EXHIBIT 4.1

 Exhibit 4.1 
 CHASE ISSUANCE TRUST 
 as Issuing Entity 
 CLASS A(2007-8) TERMS DOCUMENT 
 dated as of May 30, 2007 
 to 
 AMENDED AND RESTATED 
 CHASESERIES INDENTURE SUPPLEMENT 
 dated as of October 15, 2004 
 to 
 SECOND AMENDED AND RESTATED 
 INDENTURE 
 dated as of March 14, 2006 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Indenture Trustee and Collateral Agent 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE
	ARTICLE I Definitions and Other Provisions of General Application	  	
			
	 Section 1.01
	  	Definitions	  	1
			
	 Section 1.02
	  	Governing Law	  	4
			
	 Section 1.03
	  	Counterparts	  	4
			
	 Section 1.04
	  	Ratification of Indenture and Indenture Supplement	  	4
	
	ARTICLE II The Class A(2007-8) Notes
			
	 Section 2.01
	  	Creation and Designation	  	5
			
	 Section 2.02
	  	Specification of Required Subordinated Amount and Other Terms	  	5
			
	 Section 2.03
	  	Interest Payment	  	6
			
	 Section 2.04
	  	Calculation Agent; Determination of LIBOR	  	6
			
	 Section 2.05
	  	Payments of Interest and Principal	  	7
			
	 Section 2.06
	  	Form of Delivery of Class A(2007-8) Notes; Depository; Denominations.	  	7
			
	 Section 2.07
	  	Delivery and Payment for the Class A(2007-8) Notes	  	8
			
	 Section 2.08
	  	Supplemental Indenture	  	8
			
	 Section 2.09
	  	Appointment of co-Paying Agent and co-Transfer Agent	  	8

 THIS CLASS A(2007-8) TERMS DOCUMENT (this “Terms Document”), among the CHASE ISSUANCE TRUST, a
statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), having its principal office at c/o Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-1600, and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and as collateral agent (the “Collateral Agent”), is made and entered into as of May 30, 2007. 
 Pursuant to this Terms Document, the Issuing Entity and the Indenture Trustee shall create a new Tranche of CHASEseries Class A Notes and shall
specify the principal terms thereof. 
 ARTICLE I 
 Definitions and Other Provisions of General Application 
 Section 1.01 Definitions For all
purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires: 
 (1) the terms defined in
this Article have the meanings assigned to them in this Article, and include the plural as well as the singular; 
 (2) all other terms used
herein which are defined in the Indenture Supplement, the Indenture or the Asset Pool Supplement, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) as used in this Terms Document and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in
this Terms Document or in any such certificate or other document, and accounting terms partly defined in this Terms Document or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them
under GAAP. To the extent that the definitions of accounting terms in this Terms Document or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions contained in this Terms Document or
in any such certificate or other document shall control; 
 (4) the words “hereof,” “herein,” “hereunder” and
words of similar import when used in this Terms Document shall refer to this Terms Document as a whole and not to any particular provision of this Terms Document; references to any subsection, Section, clause, Schedule or Exhibit are references to
subsections, Sections, clauses, Schedules and Exhibits in or to this Terms Document unless otherwise specified; the term “including” means “including without limitation”; references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or regulation; references to any Person include that Person’s successors and assigns; and references to any agreement refer to such agreement, as amended, supplemented or
otherwise modified from time to time; 

 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with
any term or provision contained in the Indenture Supplement, the Indenture or the Asset Pool Supplement, the terms and provisions of this Terms Document shall be controlling; and 
 (6) each capitalized term defined herein shall relate only to the Class A(2007-8) Notes and no other Tranche of CHASEseries Notes issued by the Issuing
Entity. 
 “Asset Pool Supplement” means the Amended and Restated Asset Pool One Supplement to the Indenture, dated as of
October 15, 2004, as amended by the First Amendment thereto, dated as of May 10, 2005, and the Second Amendment thereto, dated as of February 1, 2006, by and among the Issuing Entity, the Indenture Trustee and the Collateral Agent.

 “BDL” means Banque de Luxembourg. 
 “Beneficiary” means Chase Bank USA, National Association, in its capacity as beneficial owner of the Issuing Entity. 
 “Calculation Agent” is defined in Section 2.04(a). 
 “Class A(2007-8) Adverse
Event” means the occurrence of any of the following: (a) an Early Amortization Event with respect to the Class A(2007-8) Notes, (b) an Event of Default and acceleration of the Class A(2007-8) Notes, (c) the Class A Usage
of the Class B Required Subordinated Amount for the Class A(2007-8) Notes becomes greater than zero or (d) the Class A Usage of the Class C Required Subordinated Amount for the Class A(2007-8) Notes becomes greater than zero. 

“Class A(2007-8) Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated
therein as a Class A(2007-8) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class A(2007-8)
Noteholder” means a Person in whose name a Class A(2007-8) Note is registered in the Note Register. 
 “Class A(2007-8)
Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2007-8) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on
which the Indenture is discharged and satisfied pursuant to Article V thereof. 
 “Class A Required Subordinated Amount of Class B
Notes” is defined in Section 2.02(a). 
 “Class A Required Subordinated Amount of Class C Notes” is defined in
Section 2.02(b). 
  

 2 

 “Controlled Accumulation Amount” means $16,666,666.67; provided, however,
if the Accumulation Period Length is determined to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount for any Note Transfer Date with respect to the Class A(2007-8) Notes
will be the amount specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 
 “Indenture” means the Second Amended and Restated Indenture, dated as of March 14, 2006, between the Issuing Entity and the Indenture Trustee. 
 “Indenture Supplement” means the Amended and Restated CHASEseries Indenture Supplement, dated as of October 15, 2004, among the
Issuing Entity, the Indenture Trustee and the Collateral Agent. 
 “Initial Dollar Principal Amount” means $200,000,000.

 “Interest Payment Date” means June 15, 2007 and the 15th day of each month thereafter, or if such 15th day is not a
Business Day, the next succeeding Business Day. 
 “Interest Period” means, with respect to any Interest Payment Date, the
period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and including the Issuance Date) to but excluding such Interest Payment Date. 
 “Issuance Date” means May 30, 2007. 
 “Legal Maturity Date” means March 15, 2017. 
 “LIBOR” means, for any
Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the Calculation Agent on the LIBOR Determination Date for each Interest Period in accordance with the provisions of Section 2.04.

 “LIBOR Determination Date” means (1) May 25, 2007 for the period from and including the Issuance Date through
but excluding June 15, 2007 and (2) for each interest period thereafter, the second London Business Day prior to the commencement of the second and each subsequent Interest Period. 
 “London Business Day” means any Business Day on which dealings in deposits in United States Dollars are transacted in the London
interbank market. 
 “Note Interest Rate” means a rate per annum equal to 0.02% in excess of LIBOR, as determined by the
Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period. 
 “Paying Agent” means
Wells Fargo Bank, National Association. 
  

 3 

 “Predecessor Note” means, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 3.06 of the Indenture in lieu of a mutilated, lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
 “Record Date”
means, for any Note Transfer Date, the last Business Day of the preceding Monthly Period. 
 “Reference Banks” means four
major banks in the London interbank market selected by the Beneficiary. 
 “Reuters Screen LIBO Page” means the display page
so designated on the Reuters Monitor Money Rates (or such other page as may replace that page on that service, or such other service as may be nominated as the information vendor, for the purposes of displaying rates comparable to LIBOR).

 “Scheduled Principal Payment Date” means March 16, 2015. 
 “Stated Principal Amount” means $200,000,000. 
 Section 1.02 Governing Law THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 1.03
Counterparts This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.04 Ratification of Indenture and Indenture Supplement As supplemented by this Terms Document, each of the Indenture, the Asset Pool
Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Asset Pool Supplement and the Indenture Supplement as so supplemented by this Terms Document shall be read, taken and
construed as one and the same instrument. 
 [END OF ARTICLE I] 
  

 4 

 ARTICLE II 
 The Class A(2007-8) Notes 
 Section 2.01 Creation and Designation There is hereby created a
Tranche of CHASEseries Class A Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the “CHASEseries Class A(2007-8) Notes.” 
 Section 2.02 Specification of Required Subordinated Amount and Other Terms 
 (a) For the Class A(2007-8) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal
to 6.49718% of (i) prior to the occurrence of a Class A(2007-8) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-8) Notes on such date of determination or (ii) on and after the date on which a Class
A(2007-8) Adverse Event shall have occurred, the greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-8) Notes on such date of determination and (2) the Adjusted Outstanding Dollar Principal Amount of the
Class A(2007-8) Notes as of the close of business on the day immediately preceding the date on which such Class A(2007-8) Adverse Event shall have occurred. 
 (b) For the Class A(2007-8) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to 6.49718% of (i) prior to the occurrence of a Class
A(2007-8) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-8) Notes on such date or (ii) on and after the date on which a Class A(2007-8) Adverse Event shall have occurred, the greater of (1) the Adjusted
Outstanding Dollar Principal Amount of the Class A(2007-8) Notes on such date of determination and (2) Adjusted Outstanding Dollar Principal Amount of the Class A(2007-8) Notes as of the close of business on the day immediately preceding the
date on which such Class A(2007-8) Adverse Event shall have occurred. 
 (c) The Issuing Entity may change the percentages or the formulas
set forth in either clause (a) or (b) above without the consent of any Noteholder so long as the Issuing Entity has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes that the change in
either of such percentages or formulas, as applicable, will not result in a Ratings Effect with respect to any Outstanding Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuing
Entity Tax Opinion. 
  

 5 

 Section 2.03 Interest Payment 
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class A(2007-8) Notes shall be an amount equal to the product of
(i) (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, times, (B) the Note Interest Rate in effect with respect to the related Interest
Period, times, (ii) the Outstanding Dollar Principal Amount of the Class A(2007-8) Notes determined as of the close of business on the Interest Payment Date preceding the related Note Transfer Date for the Class A(2007-8) Notes;
provided, however, that for the first Interest Payment Date, the amount of interest due with respect to the Class A(2007-8) Notes shall be an amount equal to the product of (x) the Outstanding Dollar Principal Amount of the Class
A(2007-8) Notes on the Issuance Date, (y) 16 divided by 360 and (z) the Note Interest Rate in effect with respect to the Class A(2007-8) Notes determined on May 25, 2007. Interest on the Class A(2007-8) Notes will be calculated on the
basis of the actual number of days elapsed and a 360-day year. 
 (b) Pursuant to Section 3.03 of the Indenture Supplement, on each
Note Transfer Date with respect to the Class A(2007-8) Notes, the Indenture Trustee shall deposit into the Class A(2007-8) Interest Funding Sub-Account the portion of CHASEseries Available Finance Charge Collections allocable to the Class A(2007-8)
Notes. 
 Section 2.04 Calculation Agent; Determination of LIBOR 
 (a) The Issuing Entity hereby agrees that for so long as any Class A(2007-8) Notes are Outstanding, there shall at all times be an agent appointed to
calculate LIBOR for each Interest Period (the “Calculation Agent”). The Issuing Entity hereby initially appoints the Indenture Trustee as the Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation
Agent may be removed by the Issuing Entity at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuing Entity, or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuing
Entity shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuing Entity or its Affiliates. The Calculation Agent may not resign its duties, and the Issuing Entity
may not remove the Calculation Agent, without a successor having been duly appointed. 
 (b) On each LIBOR Determination Date, the
Calculation Agent shall determine LIBOR on the basis of the rate for deposits in United States dollars for a one-month period which appears on Reuters Screen LIBO Page or on such comparable system as is customarily used to quote LIBOR as of 11:00
a.m., London time, on such date. If such rate does not appear on Reuters Screen LIBO Page or on a comparable system as is customarily used to quote LIBOR the rate for that LIBOR Determination Date shall be determined on the basis of the rates at
which deposits in United States 

  

 6 

 
dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a
one-month period. The Calculation Agent shall request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided, the rate for that LIBOR Determination Date shall be
the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by major banks in New York City, selected by the Beneficiary,
at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks for a one-month period. 
 (c) The Note Interest Rate applicable to the then current and the immediately preceding Interest Periods may be obtained by telephoning the Indenture Trustee at its corporate trust office at (612) 667-8058 or such other telephone
number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time. 
 (d) On each LIBOR Determination Date, the Calculation Agent shall send to the Indenture Trustee and the Beneficiary, by facsimile transmission, notification of LIBOR for the following Interest Period. 
 Section 2.05 Payments of Interest and Principal 
 (a) Any installment of interest or principal payable on any Class A(2007-8) Note which is punctually paid or duly provided for by the Issuing Entity and the Indenture Trustee on the applicable Interest Payment Date or
Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class A(2007-8) Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such Person’s
account as has been designated by written instructions received by the Paying Agent from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check
mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of Cede & Co., payment
shall be made by wire transfer in immediately available funds to the account designated by such nominee. 
 (b) The right of the Class
A(2007-8) Noteholders to receive payments from the Issuing Entity will terminate on the first Business Day following the Class A(2007-8) Termination Date. 
 Section 2.06 Form of Delivery of Class A(2007-8) Notes; Depository; Denominations. 
 (a) The
Class A(2007-8) Notes shall be delivered in the form of a global Registered Note as provided in Sections 2.02 and 3.01(i) of the Indenture, respectively. 
  

 7 

 (b) The Depository for the Class A(2007-8) Notes shall be The Depository Trust Company, and the Class
A(2007-8) Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class A(2007-8) Notes will be
issued in minimum denominations of $100,000 and integral multiples of $1,000 in excess of $100,000. 
 Section 2.07 Delivery and
Payment for the Class A(2007-8) Notes The Issuing Entity shall execute and deliver the Class A(2007-8) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2007-8) Notes when authenticated, each
in accordance with Section 3.03 of the Indenture. 
 Section 2.08 Supplemental Indenture The Issuing Entity may enter into a
supplemental indenture with respect to the Class A(2007-8) Notes as provided in Section 9.01 of the Indenture; provided, however, that any supplemental indenture which provides for an additional or alternative form of credit
enhancement for the Class A(2007-8) Notes shall, in addition to the requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of the CHASEseries that such
change in credit enhancement will not result in a Ratings Effect with respect to any Outstanding Notes of the CHASEseries. 
 Section 2.09 Appointment of co-Paying Agent and co-Transfer Agent 
 BDL is appointed as co-paying agent and as
co-transfer agent in Luxembourg with respect to the Class A(2007-8) Notes for so long as the Class A(2007-8) Notes are listed on the Luxembourg Stock Exchange. Any reference in this Terms Document, the Indenture Supplement, the Asset Pool Supplement
and the Indenture to the Paying Agent or the Transfer Agent shall be deemed to include BDL as co-paying agent or co-transfer agent, as the case may be, unless the context requires otherwise. 
 [END OF ARTICLE II] 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the
day and year first above written. 
  

			
	 CHASE ISSUANCE TRUST

		
	 By:
	 	CHASE BANK USA, NATIONAL ASSOCIATION, as Beneficiary and not in its individual capacity
		
	 By:
	 	 /s/ David A. Penkrot

	 Name:
	 	David A. Penkrot
	 Title:
	 	Senior Vice President
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee and Collateral Agent
		
	 By:
	 	 /s/ Cheryl C. Zimmerman

	 Name:
	 	Cheryl C. Zimmerman, CCTS
	 Title:
	 	Assistant Vice President

 Chase Issuance Trust 
 CHASEseries Class A(2007-8) Terms Document 
 Signature Page

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