Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Clyvia Technology GmbH - Exhibit 10.28

Exclusive distribution agreement 

between 

Clyvia Technology Gmbh, Friedrich-List-Allee 10 
41844
Wegberg-Wildenrath 

- referred to as "Clyvia" below - 

and 

Energie optimal GmbH 
Saarbrücker Strasse 109 
66292
Riegelsberg 

- referred to as "distributor" below - 

 

Clyvia develops systems for the depolymerization of used oils
and plastics into heating oil/diesel. 

 

 

 

[3 sets of initials] 

2 

§ 1 Exclusive distribution 

1.       Clyvia assigns to the
distributor the exclusive right of distribution for systems for fractional
depolymerization, as well peripherals for them ("contract products" below).
Clyvia can request, but it is not mandatory, that this distribution agreement
also be extended to those products that Clyvia includes in production or
distribution as derivative products or supplementary products for the contract
products described above. The parties will attempt to integrate the new
supplementary products into the scope of the contract products specified above.

If the derivative products or supplementary products from
Clyvia are directly associated with the contract products, or if advancements
are particularly suited to ensuring the continued state of the art, then in such
a case Clyvia will be obligated to incorporate the derivative products or
supplementary products into the distribution agreement. 

2.      The distributor buys and sells
in its own name and for its own account. It is not entitled to represent Clyvia
in legal transactions. Clyvia will use no other distributors. 

3.      We are aware that the
distributor must assign the rights to an American corporation (planned:
Terratec/working name) for the purpose of financing. Clyvia hereby declares its
approval to the extent that the rights of Clyvia are in no way affected or
diminished. 

 

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Status as of April 24, 2007 

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§ 2 Contract territory 

The exclusive right of distribution extends: 

- world-wide 

At present, there are still the following legally valid
distribution agreements: see Attachments 1 and 2 and the appended license
agreements with redacted names. When this exclusive distribution agreement is
definitively legally valid, they will be assigned to the distributor, to the
extent it is legally possible to do so. They are part of the agreement. The
distributor will respect the exclusive rights stipulated in them. Clyvia is
obligated to reach an agreement with the previous contractual partners to the
effect that these agreements are transferred to the distributor. In addition,
Clyvia will terminate the agreements at the next possible point in time. 

§ 3 Distribution collaboration 

1.       The distributor will use
its best efforts to procure sales of the contract products in the contract
territory by means of patent rights and license rights, specifically by
promoting the contract products in the press and other media, and by exhibiting
the contract products at trade shows. 

2.       Clyvia will support the
distributor to a reasonable extent by providing professional, substantiated
promotional materials and information. The promotional materials will remain the
property of Clyvia. To the extent that they were not used according to the terms
of this agreement, they are to be returned without delay after the end of the
contractual relationship. 

The distributor may not make use of Clyvia's trade secrets and
operational secrets, or disclose them to third parties. Analogously, Clyvia may
not disclose the distributor's trade secrets and operational secrets, to the
extent they were made accessible to Clyvia. 

 

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4 

After the agreement is signed on April 25, 2007, Clyvia will
support the distributor to a reasonable extent by providing professional and
substantiated information for the creation of promotional materials. 

3.       Clyvia will train and
instruct the partners and buyers involved with distribution in the countries in
which delivery is taken, as well as at the location of manufacture, in order to
ensure the proper production of the delivered contract products in the countries
in which delivery is taken. The buyer will pay the costs of travel and meals
outside of the factory. Apart from that, Clyvia will pay the costs of training
and instruction. 

§ 4 Goods acquisition, competition 

1.       The distributor may
obtain the patented contract products developed by Clyvia only from Clyvia. 

§ 5 Price 

The prices specified in the offer from Clyvia or in the order
confirmation from Clyvia, plus the respectively applicable sales tax, are
authoritative. Additional goods and services, in particular transportation and
assembly of the systems on site, will be billed for separately along with the
offers, assembly rates plus travel costs, expenses, etc. applicable in each
case. 

Attachment 3 contains a standard price list, in which the
standard price for the various models CL500 DUO, CL500 Plastic, CL500 Oil and
CL2000 are included. Attachment 4 shows an example of a maintenance agreement.

 

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§ 6 Delivery and service 

(1) Delivery deadlines or dates, which can be stipulated as
binding or non-binding, must be in written form. 

Clyvia affirms that it will deliver the systems no later than 4
months after submission of the required local permits, if they were definitively
ordered at least six months in advance. 

(2) In the case of delivery and service delays as a result of
acts of God and as a result of events that make the delivery materially more
difficult for Clyvia in a manner that is not merely temporary, or that make the
delivery impossible for Clyvia (included here in particular are strike, lock
out, official orders, and so forth, even if they occur for Clyvia's suppliers or
their upstream suppliers), Clyvia will not be required to comply even with
deadlines and dates stipulated as binding. They entitle Clyvia to postpone the
delivery or service for the duration of the interference plus a reasonable
response time. 

(3) If the interference lasts longer than three months, after a
reasonable grace period the distributor is entitled to withdraw from the part of
the agreement that has not yet been fulfilled. If the delivery time is extended,
or if Clyvia is released from its obligation, the distributor can derive no
claims for compensation for damages as a result. Clyvia can refer to the
mentioned circumstances only if Clyvia informs the distributor without delay.

(4) If Clyvia caused the failure to meet binding stipulated
deadlines and dates, or is in default, the distributor has a claim to default
compensation in the amount of 1/2% for each complete week of default, but at
most up to a total of 5% of the net invoice value of the deliveries and services
affected by the default. Additional claims are precluded unless the default is
based on at least gross negligence of and by Clyvia. 

 

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(5) Clyvia is entitled to provide partial deliveries and
partial services at any time unless the partial delivery or partial service is
not of interest to the distributor. A written agreement is to be made in this
respect. 

(6) Adherence to the delivery and service obligations by Clyvia
assumes the timely and proper fulfillment of the obligations of the distributor.
Clyvia is responsible for ensuring the availability of all documents that are
necessary for any export of the subject matter of the purchase directly from the
factory of Clyvia, as well as all documents that are to be prepared for the
authorization. 

(7) If the distributor goes into default in acceptance, Clyvia
is entitled to demand compensation for the damages it sustains; the risk of
accidental deterioration and of accidental destruction transfers to the
distributor when the default in acceptance occurs. 

In the case of delays as a result of acts of God and as a
result of events that make the delivery materially more difficult for the
distributor in a manner that is not merely temporary, or that make the delivery
impossible for the distributor (included here in particular are strike, lock
out, official orders, and so forth, even if they occur for deliveries to the
distributor's customers), the distributor will not be required to comply even
with deadlines and dates stipulated as binding. They entitle the distributor to
postpone the delivery or service for the duration of the interference plus a
reasonable response time. 

If the interference lasts longer than three months, after a
reasonable grace period Clyvia is entitled to withdraw from the part of the
agreement that has not yet been fulfilled. If the delivery time is extended, or
if the distributor is released from its obligation, Clyvia may make claims for
compensation for damages only if the distributor bears the responsibility for
the delay. The distributor can refer to the mentioned circumstances only if the
distributor informs Clyvia without delay in writing. 

 

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§ 7 Transfer of risk 

The risk transfers to the distributor when the device parts are
delivered to the respective authorized parties in exchange for a bill of
delivery or other documents to be stipulated. The authorized party may be
stipulated separately, depending on the country in which delivery takes place.
If the shipment is delayed at the request of the distributor, the risk transfers
with the notice of readiness for shipment. 

In principle, it is expected that, after
installation delivery of the devices into the respective
country of delivery, an inspection company will review the delivered device
parts for consistency with the agreement, and will prepare a record of the
delivered device parts, and will also check for the completeness of the
delivered parts in particular. The inspection company will deliver two copies of
the results of the inspection to Clyvia and to the distributor. 

If it emerges that the delivered system parts are not
consistent with the agreement, or are incomplete, this inspection company will
provide a corresponding indication in its inspection report. The risk transfers
to the distributor after the favorable inspection results are finalized by the
inspection company, and after delivery to the party authorized to accept
delivery in the country of delivery. 

§ 8 Rights of the distributor with respect to defects

(1) The products will be delivered free of manufacturing and
materials defects; the deadline for making claims for defects is one year after
delivery and acceptance of the products. Additional legal warranty claims are
precluded. 

(2) If operating or maintenance instructions from Clyvia are
not followed, if modifications are carried out on the products, if parts are
replaced, or if consumables that do not correspond to the original
specifications are used, then claims due to 

 

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defects in the products are not applicable if the distributor
does not refute an appropriately substantiated allegation that one of these
circumstances initially caused the defect. 

(3) The distributor must provide notice of defects in writing
to Cylvia's customer service management without delay, but no later than within
one week after receipt of the subject matter of the delivery. Clyvia is to be
provided notice in writing of defects that cannot be detected within this period
even upon careful examination without delay after discovery. 

(4) In the case of a notice from the distributor that the
products have a defect, Clyvia will require, at its election and at its expense,
that: 

a) the defective part or device be sent to Clyvia for repair
and subsequent return; 

b) the distributor hold the defective part or device, and a
service technician from Clyvia will be dispatched to the distributor in order to
carry out the repair. 

If the notice of defects turns out to be unjustified, the
distributor must reimburse all invoiced expenses incurred by Clyvia. 

(5) If the defect rectification fails after a maximum of 6
weeks, the distributor can demand a reduction of the compensation or withdraw
from the contract, at its election. 

(6) Liability for normal wear and tear is precluded. 

(7) Only the distributor is entitled to make claims against
Clyvia due to defects, and such claims are not transferable. 

§ 9 Replacement parts 

Clyvia will deliver replacement parts for a machine at the
respectively applicable prices for replacement parts for period of ten years
after the delivery of the machine. 

 

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 Status as of April 24, 2007 

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§ 10 Retention of title 

(1) Until payment is made for all accounts receivable
(including all accounts receivable balances from the current account) to which
Clyvia is entitled for any legal reason against the distributor now or in the
future, the following collateral is granted to Clyvia, which will be released to
it upon request at its election, to the extent that its value does not exceed
the accounts receivable by more than 20% over the long term. 

(2) The goods remain the property of Clyvia. Processing or
transformation always take place for Clyvia as manufacturer, but without
obligation for it. If Clyvia's (co)ownership is forfeited as a result of
assembly, it is hereby agreed that the distributor's (co)ownership of the
integrated item passes to Clyvia on a pro-rata value basis (invoice value). The
distributor will protect Clyvia's (co)ownership interest without charge. Goods
for which Clyvia is entitled to a (co)ownership interest are designated as goods
subject to reservation of title below. 

(3) The distributor is entitled to process and sell the goods
subject to reservation of title in the ordinary course of business, as long as
it is not in default or a bankruptcy motion has not been made regarding its
assets. Hypothecations or assignments of collateral are not permissible. The
accounts receivable that accrue with respect to the goods subject to reservation
of title (including all accounts receivable balances from the current account)
based on resale or another legal basis (insurance, unauthorized activity) are
hereby assigned by the distributor to Clyvia in their fullest extent as
collateral. Clyvia accepts the assignment. Clyvia revocably authorizes it to
collect the accounts receivable assigned to Clyvia for its account in its own
name. This collection authorization can be revoked only if the distributor does
not fulfill its payment obligations properly. 

(4) When third parties take the goods subject to retention of
title, in the case of property attachments in particular, the distributor will
provide notice of Clyvia's ownership interest, and inform Clyvia without delay,
such that Clyvia can enforce its ownership rights. To the extent that the third
party 

 

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Status as of April 24, 2007 

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is not in the position to compensate Clyvia for the court costs
and legal costs accrued in this context, the distributor is responsible for
doing so. 

(5) In the case of actions by the distributor that are contrary
to the agreement - payment default in particular - Clyvia is entitled to
withdraw from the contract and to reclaim the goods subject to retention of
title. 

(6) Each individual order represents a separate legal
transaction. 

§ 11 Payment 

1.       To the extent that
nothing is stipulated otherwise, the distributor is required to make payments as
follows: 

- 15 % of the total gross purchase price upon contract
execution, in exchange for bank collateral 

- an additional 30 % when notice is provided in writing by
Clyvia that production has started 

- 45 % upon notice of readiness for shipment 

- and an additional 10 % upon acceptance. 

Despite contrary provisions from the distributor, Clyvia is
entitled to credit payments against the distributor's older debts first, and
will inform the distributor in writing regarding the nature of the allocation
made. If costs and interest have already accrued, Clyvia will be entitled to
credit payments against the costs first, then against the interest and finally
against the main balance. 

 

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Status as of April 24, 2007 

11 

2.       A payment is not
considered made until Clyvia can make use of the amount due. In the case of
checks, the payment is not considered made until the check is irrevocably
honored. 

3.       If the distributor goes
into default, Clyvia is entitled to demand interest from the relevant point in
time in the amount of 8 percentage points greater than the European Central Bank
prime rate. 

4.       If circumstances become
known to Clyvia, which bring the creditworthiness of the distributor into
question, in particular if a check is not honored or its payments cease, or if
other circumstances become known to Clyvia, which bring the creditworthiness of
the distributor into question, then Clyvia is entitled to consider the entire
remaining amount due and payable, even if Clyvia has accepted checks. In this
case, Clyvia is also entitled to demand payments in advance or deposit payments,
and to do so in the context of the ZPO [Code of Civil Procedure] applicable at
the time. 

5.       Even if notices of
defects or counterclaims are made, the distributor is entitled to offset,
retention or reduction only if the counterclaims have been established as
legally binding or are not disputed. However, the distributor is also entitled
to a right of retention due to counterclaims from the same contractual
relationship. 

§ 12 Design modifications 

Clyvia reserves the right to make design modifications at any
time; however, Clyvia is not obligated to make modifications of this type on
products already delivered. 

 

 

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§ 13 Location of the system 

1.       The distributor is
responsible for ensuring that the contract products may be operated in the
contract territory, and that no legal or other provisions militate against the
operation of the systems. In addition, the distributor is responsible for
ensuring that the contract products can be introduced in the contract territory.
The distributor or its customer will adhere to the appropriate introduction
provisions and procure the necessary authorizations for the introduction. 

2.       The distributor or its
customer will enter into a maintenance agreement with Clyvia upon the delivery
of the contract product. 

3.       By itself or through a
third party, Clyvia will install the respective contract product on site. The
distributor is required to ensure that Clyvia (or third parties commissioned by
Clyvia) are granted free access to the installation location. The respective
contract product is considered accepted if a test run was carried out
successfully with the filler materials delivered prior to contract execution
with the degree of efficiency specified by Clyvia in the offer, and if no
material defects are present. 

§ 14 Liability 

(1) Claims for compensation for damages against Clyvia are
precluded, independent of the type of the breach of duty, including illegal
acts, to the extent that there are no intentional or grossly negligent acts.

(2) In the case of a breach of material contractual
obligations, Clyvia is liable for all negligence, but only up to the amount of
the foreseeable loss. Claims for lost profits, claims for spared expenditures,
claims based on third-party claims for compensation for damages, as well as
claims for other indirect and consequential damages, cannot be made unless
Clyvia guaranteed 

 

 

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quality characteristics aimed directly at protecting the
distributor from such damages. 

(3) The limitations and exclusions of liability in paragraphs 1
and 2 do not apply for claims that originated due to fraudulent behavior by
Clyvia, as well as for liability for guaranteed quality characteristics, for
claims based on the Products Liability Act, as well as losses from injury to
life, limb or health. 

(4) To the extent that Clyvia's liability is precluded or
limited, it also applies to staff members, employees, representatives and agents
of the seller. 

(5) To the extent that delivery is made to open construction
sites, Clyvia will assume liability by means of a shipping insurance policy.

§ 15 Confidentiality 

If nothing is expressly stipulated otherwise in writing, the
information submitted to the distributor in connection with orders is not
considered confidential. 

§ 16 Term of the contract 

1.       The agreement in entered
into without limitation. It is valid when the down payment according to § 11
item 1 first bullet point has been received for 100 devices in full and without
reservation into Clyvia's account. If this condition is not fulfilled without 4
months after the agreement is signed, the agreement will be considered
definitively void and unfulfilled. [initials] 

2.       The right to terminate
this agreement for good cause remains unaffected. In addition, considered good
cause for termination by Clyvia are 

 

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a) a material change in the circumstances of
ownership/management of the distributor, if a negative impact on Clyvia's
interests is to be feared; this does not apply in the case of succession or
first-degree family relations. In each case, the distributor is required to
inform Clyvia about changes without delay; 

b) a material breach of obligations from individual
transactions that were entered into in the context of this distribution
agreement; 

c) if the distributor buys fewer than 100 systems from Clyvia
in a contract year. The contract year commences on the date that the contractual
partners affix their signatures to the bottom of the agreement. 

3.       Termination notice must
be in written form. It will be delivered by registered mail with a return
receipt requested, so it is considered as received even if a delivery attempt
takes place without success, and if a delivery notice was left behind for the
distributor. 

§ 17 Applicable law 

(1) Only the law of the Federal Republic of Germany is applied
to these contractual provisions and all of the legal transactions between Clyvia
and the distributor. The provisions of the UN Convention on Contracts for the
International Sale of Goods are not applicable, to the extent that the
convention is to be precluded. 

(2) If a provision in this agreement or a provision in the
context of other agreements is or becomes invalid, the validity of all other
provisions or agreements will not thereby be affected. 

 

 

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§ 18 Venue 

Clyvia's domicile is the exclusive venue. However, Clyvia is
also entitled to file suit against the distributor in its domicile. 

Clyvia Technology GmbH 
Clyvia Technology GmbH

Friedrich-List-Allee 10 
41844 Wegberg - Wildenrath 
Tel.: 02432 /
893626 
Fax: 02432 / 893625 
Email: info@clyvia-tec.com

April 25, 2007
                       [Signature]

Date, signature 

 

 

Energie Optimal GmbH 

 

 

April 25,
2007                         
[Signature] 
Date, signature 

 

[3 sets of initials] 
Status as of April 24, 2007EXHIBIT 4.1

 

EXECUTION COPY

 

 

 

	
             
 

 

 

BA CREDIT CARD TRUST

as Issuer

 

CLASS B(2007-4) TERMS DOCUMENT

dated as of May 15, 2007

to

AMENDED AND RESTATED BASERIES INDENTURE SUPPLEMENT

dated as of June 10, 2006

to

SECOND AMENDED AND RESTATED INDENTURE

dated as of October 20, 2006

 

THE BANK OF NEW YORK

as Indenture Trustee

 

 

	
             
 

 

 

	
            ARTICLE I
 
	
             
 
	
            Definitions and Other Provisions of General Application
 
	
             
 
	
            Section 1.01.
 	
            Definitions
 	
            1
 
	
             
 	
             
 	
             
 
	
            Section 1.02.
 	
            Governing Law; Submission to Jurisdiction; Agent for Service of Process
 	
            5
 
	
             
 	
             
 	
             
 
	
            Section 1.03.
 	
            Counterparts
 	
            6
 
	
             
 	
             
 	
             
 
	
            Section 1.04.
 	
            Ratification of Indenture and Indenture Supplement
 	
            6
 
	
             
 	
             
 	
             
 
	
            ARTICLE II
 
	
             
 
	
            The Class B(2007-4) Notes
 
	
             
 
	
            Section 2.01.
 	
            Creation and Designation
 	
            7
 
	
             
 	
             
 	
             
 
	
            Section 2.02.
 	
            Specification of Required Subordinated Amount and other Terms
 	
            7
 
	
             
 	
             
 	
             
 
	
            Section 2.03.
 	
            Interest Payment
 	
            8
 
	
             
 	
             
 	
             
 
	
            Section 2.04.
 	
            Calculation Agent; Determination of LIBOR
 	
            8
 
	
             
 	
             
 	
             
 
	
            Section 2.05.
 	
            Payments of Interest and Principal
 	
            9
 
	
             
 	
             
 	
             
 
	
            Section 2.06.
 	
            Form of Delivery of Class B(2007-4) Notes; Depository; Denominations
 	
            10
 
	
             
 	
             
 	
             
 
	
            Section 2.07.
 	
            Delivery and Payment for the Class B(2007-4) Notes
 	
            10
 
	
             
 	
             
 	
             
 
	
            Section 2.08.
 	
            Targeted Deposits to the Accumulation Reserve Account
 	
            10
 
	
             
 	
             
 	
             
 
	
            ARTICLE III
 
	
             
 
	
            Representations and Warranties
 
	
             
 
	
            Section 3.01.
 	
            Issuer’s Representations and Warranties
 	
            11
 
				

            

 

 

 

THIS CLASS B(2007-4) TERMS DOCUMENT (this “Terms Document”), by and between BA CREDIT CARD TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), having its principal office at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, and THE BANK OF NEW YORK, a New York banking corporation, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of May 15, 2007.

 

Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall create a new tranche of Class B 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:

(a)          the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

(b)          all other terms used herein which are defined in the Amended and Restated BAseries Indenture Supplement, dated as of June 10, 2006 (the “Indenture Supplement”), between the Issuer and the Indenture Trustee, or the Second Amended and Restated Indenture, dated as of October 20, 2006 (the “Indenture”), between the Issuer and the Indenture Trustee, as acknowledged and accepted by FIA, as Servicer, either directly or by reference therein, have the meanings assigned to them therein; 

(c)          all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as are generally accepted in the United States of America at the date of such computation;

(d)          all references in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document as originally executed;

(e)          the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 

(f)           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 or the Indenture, the terms and provisions of this Terms Document shall be controlling;

(g)          each capitalized term defined herein shall relate only to the Class   B(2007-4) Notes and no other tranche of Notes issued by the Issuer; and 

 

 

(h)          “including” and words of similar import will be deemed to be followed by “without limitation.”

“Accumulation Reserve Funding Period” shall mean, (a) if the Accumulation Period Length is determined to be one (1) month, there shall be no Accumulation Reserve Funding Period and (b) otherwise, the period (x) commencing on the earliest to occur of (i) the Monthly Period beginning three (3) calendar months prior to the first Transfer Date for which a budgeted deposit is targeted to be made into the Principal Funding sub-Account of the Class B(2007-4) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the Monthly Period following the first Transfer Date following and including the March 2008 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 2%, but in such event the Accumulation Reserve Funding Period shall not be required to commence
earlier than 24 months prior to the Expected Principal Payment Date, (iii) the Monthly Period following the first Transfer Date following and including the September 2008 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 18 months prior to the Expected Principal Payment Date, and (iv) the Monthly Period following the first Transfer Date following and including the November 2008 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 4%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 16 months prior to the Expected Principal Payment Date and (y) ending on the close of business on the last day of the Monthly Period preceding the earlier to occur of (i) the Expected Principal Payment Date for the Class B(2007-4) Notes and (ii) the date on which
the Class B(2007-4) Notes are paid in full.

 

“Base Rate” means, with respect to any Monthly Period, the sum of (i) the Weighted Average Interest Rates for the Outstanding BAseries Notes, (ii) the Net Servicing Fee Rate (as such term is defined in the Series 2001-D Supplement) and (iii) so long as FIA or The Bank of New York is the Servicer, the Servicer Interchange Rate, in each case, for such Monthly Period.

 

“BAseries Servicer Interchange” means, with respect to any Monthly Period, an amount equal to the product of (a) the Servicer Interchange (as such term is defined in the Series 2001-D Supplement) with respect to such Monthly Period and (b) a fraction the numerator of which is the Weighted Average Available Funds Allocation Amount for the BAseries for such Monthly Period and the denominator of which is the Weighted Average Available Funds Allocation Amount for all series of Notes for such Monthly Period.

 

“Calculation Agent” is defined in Section 2.04(a).

 

“Class B(2007-4) Note” means any Note, substantially in the form set forth in Exhibit A-2 to the Indenture Supplement, designated therein as a Class B(2007-4) Note and duly executed and authenticated in accordance with the Indenture.

 

“Class B(2007-4) Noteholder” means a Person in whose name a Class B(2007-4) Note is registered in the Note Register.

 

2

 

“Class B(2007-4) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class  B(2007-4) 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 VI thereof.

 

“Class B Required Subordinated Amount of Class C Notes” is defined in Section 2.02(b). 

 

“Controlled Accumulation Amount” means $20,833,333.34; provided, however, if the Accumulation Period Length is determined to be less than twelve (12) months pursuant to Section 3.10(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount shall be the amount specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement.

 

“Excess Available Funds Percentage” means, with respect to any Transfer Date, the amount, if any, by which the Portfolio Yield for the preceding Monthly Period exceeds the Base Rate for such Monthly Period.

 

“Expected Principal Payment Date” means April 15, 2010.

 

“Initial Dollar Principal Amount” means $250,000,000.

 

“Interest Payment Date” means the fifteenth day of each month, or if such fifteenth day is not a Business Day, the next succeeding Business Day, commencing July 16, 2007.

 

“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) through the day preceding such Interest Payment Date.

 

“Issuance Date” means May 15, 2007.

 

“Legal Maturity Date” means September 17, 2012.

 

“LIBOR” means, for any Interest Period, the London interbank offered rate for one-month United States dollar deposits or, for the first Interest Period, the rate that corresponds to the actual number of days in the first Interest Period determined by the Calculation Agent on the LIBOR Determination Date for that Interest Period in accordance with the provisions of Section 2.04.

 

“LIBOR Determination Date” means May 11, 2007 for the period from and including the Issuance Date to but excluding July 16, 2007, and for each Interest Period thereafter, the second London Business Day prior to the Interest Payment Date on which such Interest Period commences.

 

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“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 per annum rate equal to 0.09% 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 The Bank of New York.

 

“Portfolio Yield” means, with respect to any Monthly Period, the annualized percentage equivalent of a fraction, the numerator of which is (a) the amount of Available Funds allocated to the BAseries pursuant to Section 501 of the Indenture, plus (b) any Interest Funding sub-Account Earnings on the related Transfer Date, plus (c) any amounts to be treated as BAseries Available Funds pursuant to Sections 3.20(d) and 3.27(a) of the Indenture Supplement, plus (d) the BAseries Servicer Interchange for such Monthly Period, minus (e) the excess, if any, of the sum of the PFA Prefunding Earnings Shortfall plus the PFA Accumulation Earnings Shortfall over the sum of the aggregate amount to be treated as BAseries Available Funds for such Monthly Period pursuant to Sections 3.04(a)(ii) and 3.25(a) of the Indenture Supplement plus any other amounts applied to cover earnings shortfalls on amounts in the Principal Funding sub-Account for any tranche of BAseries Notes for such Monthly Period, minus (f) the BAseries Investor Default Amount for such Monthly Period, and the denominator of which is the Weighted Average Available Funds Allocation Amount for the BAseries for such Monthly Period.

 

“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 306 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.

 

“Quarterly Excess Available Funds Percentage” means, with respect to the March 2008 Transfer Date and each Transfer Date thereafter, the percentage equivalent of a fraction the numerator of which is the sum of the Excess Available Funds Percentages with respect to the immediately preceding three Monthly Periods and the denominator of which is three.

 

“Record Date” means, for any 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.

 

“Required Accumulation Reserve sub-Account Amount” means, with respect to any Monthly Period during the Accumulation Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class B(2007-4) Notes as of the close of business on the last day of the preceding Monthly Period or (ii) any other amount designated by the Issuer; provided, however, that if such designation is of a lesser amount, the 

 

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Note Rating Agencies shall have provided prior written confirmation that a Ratings Effect will not occur with respect to such change.

 

“Reuters Screen LIBOR01 Page” means the display page currently 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 purpose of displaying comparable rates or prices).

 

 “Servicer Interchange Rate” means, for any Monthly Period, the percentage equivalent of a fraction, the numerator of which is the BAseries Servicer Interchange for such Monthly Period, and the denominator of which is the Weighted Average Available Funds Allocation Amount for the BAseries for such Monthly Period.

 

“Stated Principal Amount” means $250,000,000.

 

 “Weighted Average Interest Rates” means, with respect to any Outstanding Notes of a class or tranche of the BAseries, or of all of the Outstanding Notes of the BAseries, on any date, the weighted average (weighted based on the Outstanding Dollar Principal Amount of the related Notes on such date) of the following rates of interest:

 

(a)          in the case of a tranche of Dollar Interest-bearing Notes with no Derivative Agreement for interest, the rate of interest applicable to that tranche on that date;

(b)          in the case of a tranche of Discount Notes, the rate of accretion (converted to an accrual rate) of that tranche on that date;

(c)          in the case of a tranche of Notes with a payment due under a Performing Derivative Agreement for interest, the rate at which payments by the Issuer to the applicable Derivative Counterparty accrue on that date (prior to the netting of such payments, if applicable); and 

(d)          in the case of a tranche of Notes with a non-Performing Derivative Agreement for interest, the rate specified for that date in the related terms document.

Section 1.02.     Governing Law; Submission to Jurisdiction; Agent for Service of Process.  This Terms Document shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws.  The parties hereto declare that it is their intention that this Terms Document shall be regarded as made under the laws of the State of Delaware and that the laws of said State shall be applied in interpreting its provisions in all cases where legal interpretation shall be required.  Each of the parties hereto agrees (a) that this Terms Document involves at least $100,000.00, and (b) that this Terms Document has been entered into by the parties hereto in express reliance upon 6 DEL. C. § 2708.  Each of
the parties hereto hereby irrevocably and unconditionally agrees (a) to be subject to the jurisdiction of the courts of the State of Delaware and of the federal courts sitting in the State of Delaware, and (b)(1) to the extent such party is not otherwise subject to service of process in the State of Delaware, to appoint and maintain an agent in the State of Delaware as such party’s agent for acceptance of legal process, and (2) that, to the fullest extent permitted by applicable 

 

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law, service of process may also be made on such party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting evidence of valid service, and that service made pursuant to (b)(1) or (2) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such party personally within the State of Delaware.

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 and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Indenture Supplement as so supplemented and this Terms Document shall be read, taken and construed as one and the same instrument.

[END OF ARTICLE I]

 

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ARTICLE II

 

The Class B(2007-4) Notes

Section 2.01.     Creation and Designation.  There is hereby created a tranche of BAseries Class B Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the “BAseries Class B(2007-4) Notes.” 

Section 2.02.     Specification of Required Subordinated Amount and other Terms.

(a)          Notwithstanding any provision of Section 2.03 of the Indenture Supplement to the contrary, on any date of determination, the available subordinated amount of Class C Notes for the Class B(2007-4) Notes shall be at least equal to the Class B Required Subordinated Amount of Class C Notes for the Class B(2007-4) Notes.  For purposes of this clause, the available subordinated amount of Class C Notes for the Class B(2007-4) Notes as of any date will be an amount equal to, after giving effect to any issuances, deposits, allocations, reallocations or payments to be made on that date:

(i)           the aggregate Nominal Liquidation Amount of all tranches of Class C Notes which are Outstanding on that date; minus

(ii)          the sum of (A) the aggregate Class B Required Subordinated Amount of Class C Notes for all other tranches of Class B Notes which are Outstanding on that date plus (B) the aggregate Class A Required Subordinated Amount of Class C Notes for all tranches of Class A Notes for which the Class A Required Subordinated Amount of Class B Notes is equal to zero which are Outstanding on that date.

(b)          (i)          For the Class B(2007-4) Notes for any date of determination, the Class B Required Subordinated Amount of Class C Notes will be an amount equal to the product of (A) the Adjusted Outstanding Dollar Principal Amount of the Class B(2007-4) Notes on such date, times (B) the sum of:

(A)         a fraction, the numerator of which is the aggregate Class A Required Subordinated Amount of Class C Notes for all tranches of Class A Notes which are Outstanding on that date, for which the Class A Required Subordinated Amount of Class B Notes is greater than zero and the denominator of which is the aggregate Adjusted Outstanding Dollar Principal Amount for all tranches of Class B Notes (including the Class B(2007-4) Notes) which are Outstanding on that date; plus 

(B)         the product of:

(1)          6.95187%; times

(2)          a fraction, the numerator of which is the aggregate Adjusted Outstanding Dollar Principal Amount for all tranches of Class B Notes (including the Class B(2007-4) Notes) which are Outstanding on that date minus the aggregate Class A Required Subordinated Amount of Class B Notes for all tranches of Class A 

 

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Notes which are Outstanding on that date, and the denominator of which is the aggregate Adjusted Outstanding Dollar Principal Amount for all tranches of Class B Notes (including the Class B(2007-4) Notes) which are Outstanding on that date.

(ii)          If an Early Redemption Event with respect to the Class B(2007-4) Notes shall have occurred, if an Event of Default and acceleration of the Class B(2007-4) Notes shall have occurred or if the Class B Usage of the Class C Required Subordinated Amount for the Class B(2007-4) Notes is greater than zero, on any date of determination following any such event, the Class B Required Subordinated Amount of Class C Notes for the Class B(2007-2) Notes shall be the greater of (i) the amount determined pursuant to subsection 2.02(b)(i) on such date of determination and (ii) the amount determined pursuant to subsection 2.02(b)(i) as of close of business on the day immediately preceding the occurrence of such
Early Redemption Event, such Event of Default and acceleration or the date on which the Class B Usage of Class C Required Subordinated Amount exceeded zero.

(c)          The Issuer may change the definition of the Class B Required Subordinated Amount of Class C Notes with respect to the Class B(2007-4) Notes without the consent of any Noteholder so long as the Issuer has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes of the BAseries that the change in such definition will not result in a Ratings Effect with respect to any Outstanding Class 

B(2007-4) Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion with respect to such change.

Section 2.03.     Interest Payment.

(a)          For each Interest Payment Date, the amount of interest due with respect to the Class B(2007-4) 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 B(2007-4) Notes determined as of the Record Date preceding the related Transfer Date.  Interest on the Class B(2007-4) Notes will be calculated on the basis of the actual number of days in the related Interest Period and a 360-day year.

(b)          Pursuant to Section 3.03 of the Indenture Supplement, on each Transfer Date, the Indenture Trustee shall deposit into the Class B(2007-4) Interest Funding sub-Account the portion of BAseries Available Funds allocable to the Class B(2007-4) Notes. 

Section 2.04.     Calculation Agent; Determination of LIBOR.

(a)          The Issuer hereby agrees that for so long as any Class B(2007-4) Notes are Outstanding, there shall at all times be an agent appointed to calculate LIBOR for each Interest Period (the “Calculation Agent”).  The Issuer 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 Issuer at any time.  If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuer, or if the Calculation Agent fails to 

 

8

 

determine LIBOR for an Interest Period, the Issuer shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuer or its Affiliates.  The Calculation Agent may not resign its duties, and the Issuer 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 LIBOR01 Page as of 11:00 a.m., London time, on such date (or, for the first Interest Period, the rate that corresponds to the actual number of days in the first Interest Period).  If such rate does not appear on Reuters Screen LIBOR01 Page, the rate for that LIBOR Determination Date shall be determined on the basis of the rates at which deposits in United States 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 four 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 (212) 815-3247 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, the Beneficiary and the Servicer, 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, if any, payable on any Class B(2007-4) Note which is punctually paid or duly provided for by the Issuer 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 B(2007-4) 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.

 

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(b)          The right of the Class B(2007-4) Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class B(2007-4) Termination Date.

Section 2.06.     Form of Delivery of Class B(2007-4) Notes; Depository; Denominations.

(a)          The Class B(2007-4) Notes shall be delivered in the form of a global Registered Note as provided in Sections 202 and 301(i) of the Indenture, respectively.

(b)          The Depository for the Class B(2007-4) Notes shall be The Depository Trust Company, and the Class B(2007-4) Notes shall initially be registered in the name of Cede & Co., its nominee.

(c)          The Class B(2007-4) Notes will be issued in minimum denominations of $5,000 and multiples of $1,000 in excess of that amount.

Section 2.07.     Delivery and Payment for the Class B(2007-4) Notes.  The Issuer shall execute and deliver the Class B(2007-4) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class B(2007-4) Notes when authenticated, each in accordance with Section 303 of the Indenture.

Section 2.08.     Targeted Deposits to the Accumulation Reserve Account.  The deposit targeted to be made to the Accumulation Reserve Account for any Monthly Period during the Accumulation Reserve Funding Period will be an amount equal to the Required Accumulation Reserve sub-Account Amount.

[END OF ARTICLE II]

 

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ARTICLE III

 

Representations and Warranties

Section 3.01.     Issuer’s Representations and Warranties.  The Issuer makes the following representations and warranties as to the Collateral Certificate on which the Indenture Trustee is deemed to have relied in acquiring the Collateral Certificate.  Such representations and warranties speak as of the execution and delivery of this Terms Document, but shall survive until the termination of this Terms Document.  Such representations and warranties shall not be waived by any of the parties to this Terms Document unless the Issuer has obtained written confirmation from each Note Rating Agency that there will be no Ratings Effect with respect to such waiver.

(a)          The Indenture creates a valid and continuing security interest (as defined in the Delaware UCC) in the Collateral Certificate in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Issuer.

(b)          The Collateral Certificate constitutes either an “account,” a “general intangible,” an “instrument,” or a “certificated security,” each within the meaning of the Delaware UCC.

(c)          At the time of the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Issuer owned and had good and marketable title to the Collateral Certificate free and clear of any lien, claim or encumbrance of any Person.

(d)          The Issuer has caused, within ten days of the execution of the Indenture, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Collateral Certificate granted to the Indenture Trustee pursuant to the Indenture. 

(e)          Other than the security interest granted to the Indenture Trustee pursuant to the Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed the Collateral Certificate.  The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of collateral covering the Collateral Certificate other than any financing statement relating to the security interest granted to the Indenture Trustee pursuant to the Indenture or any financing statement that has been terminated.  The Issuer is not aware of any judgment or tax lien filings against the Issuer.

(f)           All original executed copies of the Collateral Certificate have been delivered to the Indenture Trustee.

(g)          At the time of the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Collateral Certificate had no marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee.

 

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[END OF ARTICLE III]

12

 

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.

 

 

	
            BA CREDIT CARD TRUST,
 
	
            by BA CREDIT CARD FUNDING, LLC, 
 
	
            as Beneficiary and not in its individual capacity
 
	
             
 
	
             
 
	
             
 
	
            By:  /s/ Keith W. Landis                        
 
	
            Keith W. Landis
 
	
            Vice President
 
	
             
 
	
             
 
	
             
 
	
            THE BANK OF NEW YORK, as Indenture Trustee
 
	
            and not in its individual capacity
 
	
             
 
	
             
 
	
             
 
	
            By:  /s/ Catherine Murray                     
 
	
            Name:  Catherine Murray
 
	
            Title:    Assistant Vice President
 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to the Class B(2007-4) Terms Document]

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