Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - WorldStar Energy Corp. - Exhibit 10.1

 

 

SHARE PURCHASE AGREEMENT 

 

by and among 

 

WORLDSTAR ENERGY CORP., 

JEWEL STAR GROUP LIMITED 

and 

NATIONAL BASE INVESTMENT LIMITED 

 

 

 

Dated as of February 12, 2007 

TABLE OF CONTENTS 

	PART 1 SALE AND PURCHASE OF THE SHARE 	1 
	 	  	  
	 	SALE AND PURCHASE OF THE SHARE	1 
	 	CLOSING 	1 
	 	  	  
	PART 2 REPRESENTATIONS AND WARRANTIES OF JEWEL 	2 
	 	  	  
	 	AUTHORIZATION, ETC 	2 
	 	TITLE TO SHARE	2 
	 	NO CONFLICTS, ETC 	2 
	 	CORPORATE STATUS 	2 
	 	CONSENTS 	2 
	 	TAXES 	2 
	 	ACCURACY OF DISCLOSURE SCHEDULE 	2 
	 	SURVIVAL OF REPRESENTATIONS AND WARRANTIES 	2 
	 	  	  
	PART 3 REPRESENTATIONS AND WARRANTIES OF WORLDSTAR
      	2 
	 	  	  
	 	AUTHORIZATION, ETC 	4 
	 	NO CONFLICTS, ETC 	4 
	 	CORPORATE STATUS 	4 
	 	PUBLIC DISCLOSURE 	4 
	 	CONSENTS 	4 
	 	SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF WORLDSTAR 	5 
	 	  	  
	PART 4 COVENANTS OF THE BULGAN ENTITIES 	5 
	 	  	  
	 	FURTHER ACTIONS 	5 
	 	PAYMENT OF TAXES 	5 
	 	FURTHER ASSURANCES 	5 
	 	  	  
	PART 5 COVENANTS OF WORLDSTAR 	6 
	 	  	  
	 	FURTHER ACTIONS 	6 
	 	FURTHER ASSURANCES 	6 
	 	  	  
	PART 6 COVENANTS OF WORLDSTAR AND THE BULGAN ENTITIES
      	7 
	 	  	  
	 	CONFIDENTIALITY 	7 
	 	PUBLICITY 	7 
	 	  	  
	PART 7 CONDITIONS PRECEDENT 	7 
	 	  	  
	 	CONDITIONS TO OBLIGATIONS OF EACH PARTY 	7 
	 	CONDITIONS TO OBLIGATIONS OF WORLDSTAR 	8 
	 	CONDITIONS TO OBLIGATIONS OF THE BULGAN ENTITIES 	9 
	 	  	  
	PART 8 TERMINATION 	9 
	 	  	  
	 	TERMINATION 	9 
	 	EFFECT OF TERMINATION 	10 
	 	  	  
	PART 9 DEFINITIONS 	10 
	 	  	  
	 	TERMS GENERALLY 	10 
	 	CERTAIN TERMS 	11 
	 	  	  
	PART 10 MISCELLANEOUS 	14 
	 	  	  
	 	EXPENSES 	14 

- ii - 

	NOTICES
      	14
      
	GOVERNING
      LAW AND DISPUTE RESOLUTION 	15
      
	BINDING
      EFFECT 	17
      
	ASSIGNMENT
      	17
      
	THIRD
      PARTY BENEFICIARIES 	17
      
	AMENDMENT;
      WAIVERS, ETC. 	17
      
	ENTIRE
      AGREEMENT 	18
      
	SEVERABILITY
      	18
      
	HEADINGS
      	18
      
	COUNTERPARTS
      	18
      

	Schedule A - Disclosure Schedule 
	Schedule B - List of Licenses 
	Schedule C - Mongolian Legal Counsel Opinion 
	Schedule D - Bulgan Gold Shareholders’ Agreement
      
	Schedule E - Post-Closing Organizational Chart 

SHARE PURCHASE AGREEMENT 

This SHARE PURCHASE AGREEMENT (this “Agreement”), dated as of
February 12, 2007, is entered into by and among Worldstar Energy Corp.
(“Worldstar”), a Nevada corporation, Jewel Star Group Limited, a BVI corporation
(“Jewel”) and National Base Investment Limited (“National”), a BVI company and a
wholly-owned subsidiary of Jewel. 

W I T N E S S E T H: 

WHEREAS: 

(A)                    
Jewel holds one issued and outstanding ordinary share (the “Share”) of National
and WorldStar has agreed to buy and Jewel has agreed to sell the Share to
Worldstar, on the terms and conditions and for the consideration described in
this Agreement; 

NOW, THEREFORE, in consideration of the mutual promises,
covenants, representations and warranties made herein and of the mutual benefits
to be derived herefrom, the parties hereto agree as follows: 

PART 1 

SALE AND PURCHASE OF THE SHARE 

Sale and Purchase of the Shares 

1.1                    
Subject to the terms and conditions hereof, Jewel will sell to Worldstar, and
Worldstar will purchase from Jewel, the Share at a price of $8,860,000 (the
“Purchase Price”), payable through the issuance of 30,000,000 Worldstar shares
valued at $0.25 each plus $1,360,000 cash at the Closing in the manner set forth
in §1.2. 

Closing 

1.2                    
The closing of the sale and purchase of the Share contemplated by §1.1 (the
“Closing”) shall take place on or before February 28, 2007 (the “Closing Date”)
at a location to be agreed upon by Worldstar and Jewel subject to the
satisfaction or waiver of the conditions precedent set forth in Part 7 of this
Agreement. At the Closing: 

(a)          
Jewel will deliver or cause to be delivered to Worldstar, free and clear of any
Lien, a certificate representing the Share, duly endorsed or accompanied by a
stock power or other instrument of transfer duly executed for transfer to
Worldstar together with any other documents or actions necessary to accomplish
the foregoing; 

(b)          
Worldstar will pay Jewel an amount equal to the Purchase Price, by delivery of
one certificate for 30,000,000 Worldstar shares registered in the name of Jewel,
plus wire 

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transfer of immediately available funds
to the account of Jewel designated on the Disclosure Schedule or otherwise in
writing to Worldstar at least one Business Day prior to the Closing Date. 

PART 2 

REPRESENTATIONS AND WARRANTIES OF JEWEL 

Jewel hereby represents and warrants to Worldstar as follows,
as of the date hereof and as of the Closing Date: 

Authorization, etc. 

2.1                    
Jewel has full power, authority and capacity to execute and deliver this
Agreement, to perform its obligations hereunder and to consummate the purchase
and sale of Shares contemplated hereby. The execution, delivery and performance
of this Agreement by Jewel, and the consummation of the purchase and sale of the
Share contemplated hereby, have been duly authorized by all requisite corporate
action of Jewel and National. Jewel and National have duly executed and
delivered this Agreement. This Agreement constitutes the legal, valid and
binding obligation of Jewel and National enforceable against each party in
accordance with its terms. 

Title to Shares 

2.2                    
As of Closing, Jewel owns, legally and beneficially, the Share. Upon the
delivery of and payment for the Share at the Closing as provided for in this
Agreement, Worldstar will acquire good and valid title to the Share free and
clear of any Lien. 

No Conflicts, etc. 

2.3                    
The execution, delivery and performance of this Agreement by each Bulgan Entity,
and the consummation of the purchase and sale of the Share contemplated hereby,
do not and will not conflict with, contravene, result in a violation or breach
of or default under (with or without the giving of notice or the lapse of time
or both), create in any other Person a right or claim of termination or
amendment, or require modification, acceleration or cancellation of, or result
in the creation of any Lien (or any obligation to create any Lien) upon any of
the properties or assets of any Bulgan Entity under, (a) any Law applicable to
any Bulgan Entity or any of its properties or assets, (b) any provision of any
of the Organizational Documents of such Bulgan Entity or (c) any Contract, or
any other agreement or instrument to which any Bulgan Entity is a party or by
which any of its properties or assets may be bound except, in the case of each
of clauses (a), (b) and (c), as would not reasonably be expected to prevent or
materially impair or delay the ability of Jewel to sell the Share and otherwise
fulfill its obligations under this Agreement. 

Corporate Status 

2.4        
(a)          Jewel. Jewel is a
corporation duly organized and validly existing under the laws 

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of BVI, and has full power and
authority to, conduct its business and to own or lease and to operate its
properties as and in the places where such business is conducted and such
properties are owned, leased or operated. 

(b)          
National. National is a BVI limited liability company, duly organized, validly
existing and in good standing under the laws of BVI. National is a wholly owned
Subsidiary of Jewel, and has full power and authority to, conduct its business
and to own or lease and to operate its properties as and in the places where
such business is conducted and such properties are owned, leased or operated.

(c)          
Each of the other Bulgan Entities is duly incorporated and validly existing
under the laws of the jurisdiction of incorporation as set forth in Schedule E.

Consents 

2.5                    
All Governmental Approvals or other Consents required to be obtained by each
Bulgan Entity in connection with the execution and delivery of this Agreement
and the consummation of the purchase and sale of the Share contemplated hereby
have been obtained. 

Taxes 

2.6                    
Jewel hereby acknowledges and represents that neither Worldstar nor any Bulgan
Entity will be required pursuant to any applicable Law to pay any Taxes or to
act as withholding agent for Taxes due from any Bulgan Entity to any
Governmental Authority in connection with the consummation of the purchase and
sale of the Share contemplated by this Agreement. 

Accuracy of Disclosure Schedule 

2.7                    
The information about the Bulgan Entities contained in the Disclosure Schedule
is true and correct in all material respects and does not omit to disclose any
information needed to understand the current operation, assets and liabilities
of the Bulgan Entities taken as a whole. 

Survival of Representations and Warranties 

2.8                    
Each of the representations and warranties of Jewel and National in this
Agreement or in any schedule, instrument or other document delivered pursuant to
this Agreement shall survive the Closing Date and shall continue in force
thereafter. 

PART 3 

REPRESENTATIONS AND WARRANTIES OF WORLDSTAR 

Worldstar represents and warrants to Jewel as follows, as of
the date hereof and as of the Closing Date: 

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Authorization, etc. 

3.1                    
Worldstar has full corporate power and authority to execute and deliver this
Agreement, to perform its obligations hereunder and to consummate the purchase
and sale of Shares contemplated hereby. The execution, delivery and performance
of this Agreement by Worldstar, and the consummation of the purchase and sale of
the Share contemplated hereby, have been duly authorized by all requisite
corporate action of Worldstar. Worldstar has duly executed and delivered this
Agreement. This Agreement constitutes the legal, valid and binding obligation of
Worldstar, enforceable against Worldstar in accordance with its terms. 

No Conflicts, etc. 

3.2                    
The execution, delivery and performance of this Agreement by Worldstar, and the
consummation of the purchase and sale of the Share contemplated hereby, do not
and will not conflict with, contravene, result in a violation or breach of or
default under (with or without the giving of notice or the lapse of time, or
both), create in any other Person a right or claim of termination or amendment,
or require modification, acceleration or cancellation of, or result in or
require the creation of any Lien (or any obligation to create any Lien) upon any
of the properties or assets of Worldstar under (a) any Law applicable to
Worldstar or any of its properties or assets, (b) any provision of any of the
Organizational Documents of Worldstar, or (c) any Contract, or any other
agreement or instrument to which Worldstar is a party or by which its properties
or assets may be bound except, in the case of each of clauses (a), (b) and (c),
as would not reasonably be expected to prevent or materially impair or delay the
ability of Worldstar to purchase the Share and otherwise fulfill its obligations
under this Agreement. 

Corporate Status 

3.3                    
Worldstar is company duly organized, validly existing and in good standing under
the laws of Nevada and has full power and authority to conduct its business and
to own or lease and to operate its properties as and in the place where such
business is conducted and such properties are owned, leased or operated. 

Public Disclosure 

3.4                    
The public disclosures of Worldstar filed with the SEC are correct in all
material respects. Worldstar has fewer than two million issued and outstanding
shares and no obligations to issue shares in excess of this figure. 

Consents 

3.5                    
No Governmental Approvals or other Consents is required to be obtained by
Worldstar in connection with the execution and delivery of this Agreement and
the consummation of the purchase and sale of Shares contemplated hereby have
been obtained. 

- 5 - 

Survival of Representations and Warranties of Worldstar

3.6                    
Each of the representations and warranties of Worldstar in this Agreement or in
any schedule, instrument or other document delivered pursuant to this Agreement
shall survive the Closing Date and shall continue in force thereafter. 

PART 4 

COVENANTS OF THE BULGAN ENTITIES 

Further Actions 

	4.1 	
      (a)          
      Each Bulgan Entity shall use reasonable efforts to take or cause to be
      taken all actions, and to do or cause to be done all other things,
      necessary, proper or advisable in order for such Bulgan Entity to fulfill
      and perform its obligations in respect of this Agreement, or otherwise to
      consummate and make effective the purchase and sale of the Share and the
      Bulgan Reorganization.

(b)          
Each Bulgan Entity shall, as promptly as practicable, (i) make, or cause to be
made, all filings and submissions required under any Law applicable to such
Bulgan Entity, and give such reasonable undertakings as may be required in
connection therewith, and (ii) use reasonable efforts to obtain or make, or
cause to be obtained or made, all Governmental Approvals and Consents necessary
to be obtained or made by such Bulgan Entity, in each case in connection with
this Agreement or the consummation of the purchase and sale of the Share
contemplated hereby. 

(c)          
Each Bulgan Entity shall coordinate and cooperate with Worldstar in exchanging
such information and supplying such reasonable assistance as may be reasonably
requested by Worldstar in connection with the filings and other actions
contemplated by §5.1. 

(d)           At
all times prior to the Closing Date, each Bulgan Entity shall promptly notify
Worldstar in writing of any fact, condition, event or occurrence that could
reasonably be expected to result in the failure of any of the conditions
contained in §7.1 and §7.2 to be satisfied, promptly upon becoming aware of the
same. 

Payment of Taxes 

4.2                    
Jewel shall pay all Taxes due or payable to any Governmental Authority in BVI
incurred or to be incurred in connection with the sale and transfer of the Share
by Jewel to Worldstar hereunder and in connection with any sale and transfer of
the Share to Jewel.

Further Assurances 

4.3                    
Following the Closing Date, each Bulgan Entity shall, from time to time, execute
and deliver such additional instruments, documents, conveyances or assurances
and take such other actions as shall be necessary, or otherwise reasonably be
requested by Worldstar, to 

- 6 - 

confirm and assure the rights and obligations provided for in
this Agreement and render effective the consummation of the purchase and sale of
the Share contemplated hereby, or otherwise to carry out the intent and purposes
of this Agreement (which include the transfer by Jewel to Worldstar of the
ownership and intended benefits of the Share in the manner contemplated by §1.2)
.. 

PART 5 

COVENANTS OF WORLDSTAR 

Further Actions 

	5.1 	
      (a)          
      Worldstar shall use reasonable efforts to take or cause to be taken all
      actions, and to do or cause to be done all other things, necessary, proper
      or advisable in order for Worldstar to fulfill and perform its obligations
      in respect of this Agreement, or otherwise to consummate and make
      effective the purchase and sale of the Share contemplated
  hereby.

(b)          
Worldstar shall, as promptly as practicable, (i) make, or cause to be made, all
notices, filings and submissions required under any Law applicable to Worldstar,
and give such reasonable undertakings as may be required in connection
therewith, and (ii) use reasonable efforts to obtain or make, or cause to be
obtained or made, all Governmental Approvals and Consents necessary to be
obtained or made by Worldstar, in each case in connection with this Agreement or
the consummation of the purchase and sale of the Share contemplated hereby. 

(c)          
Worldstar shall coordinate and cooperate with Jewel in exchanging such
information and supplying such reasonable assistance as may be reasonably
requested by Jewel in connection with the filings and other actions contemplated
by §4.1. 

(d)           At
all times prior to the Closing Date, Worldstar shall promptly notify each Bulgan
Entity in writing of any fact, condition, event or occurrence that could
reasonably be expected to result in the failure of any of the conditions
contained in §7.1 and §7.3 to be satisfied, promptly upon becoming aware of the
same. 

Further Assurances 

5.2                    
Following the Closing Date, Worldstar shall from time to time, execute and
deliver such additional instruments, documents, conveyances or assurances and
take such other actions as shall be necessary, or otherwise reasonably be
requested by Jewel, to confirm and assure the rights and obligations provided
for in this Agreement and render effective the consummation of the purchase and
sale of the Share contemplated hereby, or otherwise to carry out the intent and
purposes of this Agreement. 

- 7 - 

PART 6 

COVENANTS OF WORLDSTAR AND THE BULGAN ENTITIES 

Confidentiality 

6.1                    
Each party shall maintain the confidentiality of Confidential Information in
accordance with procedures adopted by such party in good faith to protect
confidential information of third parties delivered to such party, provided that
such party may deliver or disclose Confidential Information to (i) such party’s
representatives, Affiliates, shareholders, limited partners, members of its
investment committees, advisory committees, and similar bodies, and Persons
related thereto, who are informed of the confidentiality obligations of this
§6.1, (ii) any Governmental Authority having jurisdiction over such party to the
extent required by applicable Law or (iii) any other Person to which such
delivery or disclosure may be necessary or appropriate (A) to effect compliance
with any Law applicable to such party, or (B) in response to any subpoena or
other legal process, provided that, in the cases of clauses (ii) and (iii)
above, the disclosing party shall provide each other party with prompt written
notice thereof so that the appropriate party may seek (with the cooperation and
reasonable efforts of the disclosing party) a protective order, confidential
treatment or other appropriate remedy, and in any event shall furnish only that
portion of the information which is reasonably necessary for the purpose at hand
and shall exercise reasonable efforts to obtain reliable assurance that
confidential treatment will be accorded such information to the extent
reasonably requested by any other party. 

Publicity 

6.2                    
Except as may be required by applicable Law, none of the parties hereto shall
issue a publicity release or announcement or otherwise make any public
disclosure concerning this Agreement or the purchase and sale of the Share
contemplated hereby or the Other Transactions, without prior written approval of
Worldstar and Jewel. If any announcement is required by applicable Law to be
made by any party hereto, prior to making such announcement such party will
deliver a draft of such announcement to the other parties and shall give the
other parties an opportunity to comment thereon. 

PART 7 

CONDITIONS PRECEDENT 

Conditions to Obligations of Each Party 

7.1                    
The obligations of each party to consummate the purchase and sale of the Share
contemplated hereby shall be subject to the fulfillment on or prior to the
Closing Date of the following conditions: 

(a)          
No Injunction, etc. Consummation of the purchase and sale of the Share
contemplated hereby shall not have been restrained, enjoined or otherwise
prohibited or made illegal by any applicable Law, including any order,
injunction, decree or judgment 

- 8 - 

of any court or other Governmental
Authority in any material respect; and no such Law that would have such an
effect shall have been promulgated, entered, issued or determined by any court
or other Governmental Authority to be applicable to this Agreement. No action or
proceeding shall be pending or threatened by any Governmental Authority on the
Closing Date before any court or other Governmental Authority to restrain,
enjoin or otherwise prevent the consummation of the purchase and sale of the
Share contemplated hereby in any material respect. 

(b)          
Satisfactory Due Diligence. Each of the parties hereto shall be satisfied
with the results of its due diligence investigations into the business,
financial and legal status of each party hereto and of the Bulgan Entities. Each
of the parties shall provide full access to its records in connection with the
other party’s due diligence reviews and in addition National shall provide all
information about the Bulgan Entities that Worldstar may request. 

(c)          
Other Transactions. The Other Transactions shall have been consummated on
or prior to the Closing Date. 

Conditions to Obligations of Worldstar 

7.2                    
The obligation of Worldstar to consummate the purchase and sale of the Share
contemplated hereby shall be subject to the fulfillment on or prior to the
Closing Date of the following additional conditions, which each Bulgan Entity
agrees to cause to be fulfilled: 

(a)          
Representations, Performance 

(i)          
The representations and warranties of the Bulgan Entities contained in Part 2
(i) shall be true and correct in all material respects at and as of the date
hereof,(ii) shall be repeated and shall be true and correct in all material
respects on and as of the Closing Date with the same effect as though made on
and as of the Closing Date, except in the case of each of clauses (i) and (ii)
as would not reasonably be expected to prevent or materially impair or delay the
ability of Jewel to sell the Share and otherwise fulfill its obligations under
this Agreement. 

(ii)          
Each Bulgan Entity shall have in all material respects duly performed and
complied with all agreements, covenants and conditions required by this
Agreement to be performed or complied with by such Bulgan Entity prior to or on
the Closing Date, except as would not reasonably be expected to prevent or
materially impair or delay the ability of Jewel to sell the Share and otherwise
fulfill its obligations under this Agreement. 

(b)          
Corporate and Other Proceedings. All corporate, partnership and other
proceedings of each Bulgan Entity in connection with the purchase and sale of
the Share contemplated by this Agreement, and all documents and instruments
incident thereto, shall be satisfactory in form and substance to Worldstar and
its counsel in their reasonable judgment, and Worldstar and its counsel shall
have received all such documents and instruments, or copies thereof, certified
if requested, as may be reasonably requested. 

- 9 - 

(c)          
Completion of $5.5 million Financing. WorldStar shall have received the
proceeds of the sale of 22 million common shares at $0.25 each from investors
who have agreed that the proceeds can be used to complete the transaction
contemplated hereby. 

(d)          
Legal Opinions. WorldStar shall have received legal opinions which are
satisfactory to it, acting reasonably, that confirm that Bulgan Mongolia owns
the Licenses, is owned by Bulgan Gold which is, in turn, as to 52% owned by
Bulgan GIL, which in turn is owned as to 98% by National, all in accordance with
the organization chart attached as Schedule E. 

(e)          
Financial Statements. Worldstar shall have received audited Financial
Statements for each of the Bulgan Entities which as of December 31, 2006 show
only nominal assets and liabilities except for Bulgan Gold which shall show the
financial effects of the Bulgan Gold Shareholder’s Agreement. 

Conditions to Obligations of the Bulgan Entities 

7.3                    
The obligation of each Bulgan Entity to consummate the Bulgan Reorganization
contemplated hereby shall be subject to the fulfillment, on or prior to the
Closing Date, of the following additional conditions, which Worldstar agrees to
cause to be fulfilled: 

(a)          
Representations, Performance, etc. 

(i)          
The representations and warranties of Worldstar contained in Part 3 (i) shall be
true and correct in all material respects at and as of the date hereof, (ii)
shall be repeated and shall be true and correct in all material respects on and
as of the Closing Date with the same effect as though made at and as of such
time, except in the case of each of clauses (i) and (ii) as would not reasonably
be expected to prevent or materially impair or delay the ability of Worldstar to
purchase the Share and otherwise fulfill its obligations under this Agreement.

(ii)          
Worldstar shall have in all material respects duly performed and complied with
all agreements, covenants and conditions required by this Agreement to be
performed or complied with by it prior to or on the Closing Date, except as
would not reasonably be expected to prevent or materially impair or delay the
ability of Worldstar to purchase the Share and otherwise fulfill its obligations
under this Agreement. 

PART 8 

TERMINATION 

Termination 

8.1                    
This Agreement may be terminated at any time prior to the Closing Date: 

(a)           By
the written agreement of Worldstar and Jewel; 

- 10 - 

(b)           By
Jewel or Worldstar by written notice to the other party if the Other Transaction
Agreements shall have terminated in accordance with their terms or the
conditions in §7.1(a), 7.1(b)or 7.1(c) are not met by the Closing Date; or 

(c)           By
Worldstar if there shall have been a material breach of any covenant or
agreement on the part of the Bulgan Entities contained in this Agreement such
that the condition set forth in §7.2(a)(i) or §7.2(a)(ii) would not be satisfied
and which shall not have been cured within 30 days following written notice of
such breach; provided that Worldstar shall not have the right to terminate this
Agreement pursuant to this §8.1(c) if Worldstar is then in material breach of
any of its covenants or agreements contained in this Agreement such that the
Closing condition set forth in §7.2(a)(i) or §7.2(a)(ii) would not be satisfied;
or 

(d)           By
Jewel if there shall have been a material breach of any covenant or agreement on
the part of Worldstar contained in this Agreement such that the condition set
forth in §7.3(a)(i) and §7.3(a)(ii) would not be satisfied and which shall not
have been cured within 30 days following written notice of such breach; provided
that Jewel shall not have the right to terminate this Agreement pursuant to this
§8.1(d) if any Bulgan Entity is then in material breach of any of its covenants
or agreements contained in this Agreement such that the Closing condition set
forth in §7.2(a)(i) or §7.2(a)(ii) would not be satisfied. 

Effect of Termination 

8.2                    
In the event of the termination of this Agreement pursuant to the provisions of
§8.1, this Agreement shall become void and have no effect, without any liability
to any Person in respect hereof or of the purchase and sale of the Share
contemplated hereby on the part of any party hereto, or any of its directors,
officers, representatives, stockholders or Affiliates, except as specified in
§4.2, §6.1, §6.2, §8.2, §10.1 and §10.3 and except for any liability resulting
from such party’s breach of this Agreement prior thereto. 

PART 9 

DEFINITIONS 

Terms Generally 

9.1                    
The words “hereby,” “herein,” “hereof,” “hereunder” and words of similar import
refer to this Agreement as a whole and not merely to the specific section,
paragraph or clause in which such word appears. All references herein to
Sections shall be deemed references to Sections of this Agreement unless the
context shall otherwise require. The words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.” The
definitions given for terms in this Part 9 and elsewhere in this Agreement shall
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. Except as otherwise expressly provided
herein, all references to “dollars” or “US$” shall be deemed references to the
lawful money of the United States of America. 

- 11 - 

Certain Terms 

9.2                    
Whenever used in this Agreement, the following terms shall have the respective
meanings given to them below or in the Sections indicated below: 

Affiliate: of a Person means a Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is
under common control with, the first Person, including but not limited to a
Subsidiary of the first Person, a Person of which the first Person is a
Subsidiary, or another Subsidiary of a Person of which the first Person is also
a Subsidiary.

Agreement: means this Agreement with all Schedules. 

Bulgan Entities: means National, Bulgan GIL, Bulgan Gold
and Bulgan Mongolia, together. 

Bulgan GIL: means Bulgan Gold Investment Limited,
a Hong Kong company. 

Bulgan Gold Shareholder’s Agreement: means the December
18, 2006 Agreement involving the Bulgan Reorganization and which is attached as
Schedule D. 

Bulgan Gold: means Bulgan Gold (Hong Kong) Limited, a
Hong Kong company. 

Bulgan Mongolia: means Bulgan Gold LLC, a Mongolian
company and holder of State Registration Certificate No. 9011045098. 

Bulgan Reorganization: means the carrying out of the
transactions contemplated by this Agreement, together with the Other
Transactions. 

Business Day: any day that is not a Saturday, Sunday or
other day on which banks are required or authorized by Law to be closed in
Nevada, Hong Kong or Mongolia. 

Claimant: as defined in §10.3(b) . 

Closing Date: as defined in §1.2. 

Closing: as defined in §1.2. 

Confidential Information: information regarding this
Agreement and the Other Transaction Agreements including the terms, status and
existence thereof, provided that such Confidential Information does not include
information that (a) was publicly known or otherwise known to such receiving
party prior to the time of such disclosure, (b) subsequently becomes publicly
known through no act or omission by such receiving party or any Person acting on
such party’s behalf, or (c) otherwise becomes known to such receiving party
other than through disclosure by the delivering party or any Person with a duty
to keep such information confidential. 

Consent: any consent, approval, authorization, waiver,
permit, grant, franchise, concession, agreement, license, certificate,
exemption, order, registration, declaration, filing, report or notice of, with
or to any Person. 

- 12 - 

Contract: all loan agreements, indentures, letters of
credit (including related letter of credit applications and reimbursement
obligations), mortgages, security agreements, pledge agreements, deeds of trust,
bonds, notes, guarantees, surety obligations, warranties, licenses, franchises,
permits, powers of attorney, purchase orders, leases, and other agreements,
contracts, instruments, obligations, offers, commitments, arrangements and
understandings, written or oral. 

Control (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power
to direct or cause the direction of the management policies of a person, whether
through the ownership of voting securities, by contract or credit arrangement,
as trustee or executor, or otherwise. 

Governmental Approval: any Consent of, with or to any
Governmental Authority. 

Governmental Authority: any nation or government, any
state or other political subdivision thereof; any entity, authority or body
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, including, without limitation, any
government authority, agency, department, board, commission or instrumentality
of any nation or any political subdivision thereof; any court, tribunal or
arbitrator; and any self-regulatory organization. 

ICC: as defined in §10.3(b) . 

Jewel: as defined in the first paragraph of this
Agreement. 

Law: all applicable provisions of all (a) constitutions,
treaties, statutes, laws, codes, rules, regulations, ordinances or orders of any
Governmental Authority, (b) Governmental Approvals and (c) orders, decisions,
injunctions, judgments, awards and decrees of or agreements with any
Governmental Authority. 

Licenses: means the 50 mineral exploration licenses
granted to Bulgan Mongolia in December 2006 and more particularly described on
Schedule B. 

Lien: any mortgage, pledge, deed of trust,
hypothecation, right of others, claim, security interest, encumbrance, burden,
title defect, title retention agreement, lease, sublease, license, occupancy
agreement, easement, covenant, condition, encroachment, voting trust agreement,
interest, option, right of first offer, negotiation or refusal, proxy, lien,
charge or other restrictions or limitations of any nature whatsoever, including
but not limited to such Liens as may arise under any Contract. 

Loan and Share Pledge Agreement: means the agreement
whereby Worldstar has lent to Bulgan GIL funds to facilitate the Bulgan
Reorganization. 

National Base: means National Base Investment Limited.

Organizational Documents: as to any Person, its
certificate or articles of incorporation, bylaws and other organizational
documents. 

- 13 - 

Other Transaction Agreements: the Bulgan Gold
Shareholder’s Agreement, the Loan and Share Pledge Agreement and the
Subscription Agreements. 

Other Transactions: the transactions contemplated by the
Other Transaction Agreements. 

Person: any natural person, firm, partnership,
association, corporation, company, trust, business trust, Governmental Authority
or other entity. 

Purchase Price: as defined in §1.1. 

Register of Members: as defined in §1.2. 

Request: as defined in §10.3(b) . 

Respondent: as defined in §10.3(b) . 

Schedules: means the following schedules which are
attached hereto and form part of this Agreement 

Schedule A - Disclosure 
Schedule
Schedule B - List of Licenses 
Schedule C - Mongolian Legal Counsel Opinion

Schedule D - Bulgan Gold Shareholders’ Agreement 
Schedule E -
Post-Closing Organizational Chart 

Share: as defined in the recitals of this Agreement.

Subscription Agreement: means the agreements under which
Worldstar is to raise $5.5 million as a condition to the Closing in order to
fund the Bulgan Reorganization. 

Subsidiaries: each corporation or other Person in which
a Person owns or controls, directly or indirectly, share capital or other equity
interests representing more than 50% of the outstanding voting stock or other
equity interests. 

Tax: any federal, state, local or foreign income,
alternative, minimum, accumulated earnings, personal holding company, franchise,
share capital, profits, windfall profits, gross receipts, sales, use, value
added, transfer, registration, stamp, premium, excise, customs duties,
severance, environmental, real property, personal property, ad valorem,
occupancy, license, occupation, employment, payroll, social security,
disability, unemployment, workers’ compensation, withholding, estimated or other
similar tax, duty, fee, assessment or other governmental charge or deficiencies
thereof (including all interest and penalties thereon and additions thereto).

Worldstar: means Worldstar Energy, Corp. a Nevada company
  which has its common shares listed on the OTC Bulletin Board. 

- 14 - 

PART 10 

MISCELLANEOUS 

Expenses 

10.1
E                   
xcept as set forth below in this §10.1 or as otherwise specifically provided for
in this Agreement, each Bulgan Entity, on the one hand, and Worldstar, on the
other hand, shall bear their respective expenses, costs and fees (including
attorneys’ fees) in connection with the purchase and sale of the Share
contemplated hereby, including the preparation, execution and delivery of this
Agreement and compliance herewith, whether or not the purchase and sale of the
Share contemplated hereby shall be consummated; provided that for the avoidance
of doubt, any Tax or other expense associated with the transfer of the Share
contemplated hereby shall be borne solely by Jewel. 

Notices 

10.2                    
All notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given if

	 	(a) 	
      delivered personally,

	 	 	 	 
	 	(b) 	
      sent by next-day or overnight mail or delivery,
  or

	 	 	 	 
	 	(c) 	
      sent by email, as follows:

	 	 	 	 
	 		(i) 	
      if to Worldstar,

	 	 	 	 
	 			
      c/o Mike Kinley, President
 65 - 468 Seymour
    Street

	 			
      Vancouver, British Columbia, Canada V6B 3H1

	 	 	 	 
	 			
      winslowassoc@shaw.ca

	 	 	 	 
	 		(ii) 	
      if to Jewel,

	 	 	 	 
	 			
      Richard Tay 
c/o 2803 Wing On House 
No. 71 Des
      Voeux Road 
Central Hong Kong

	 	 	 	 
	 			
      Attention: Y.C. Lee

	 	 	 	 
	 			
      tayfamily@pacific.net.sg

(or, in each case, at such other address as may be specified in
writing to the other parties hereto in accordance with this §10.2. ) 

- 15 - 

All such notices, requests, demands, waivers and other
communications shall be deemed to have been received (i) if by personal delivery
on the day after such delivery, (ii) if by next-day or overnight mail or
delivery, on the day delivered, (iii) if by facsimile, on the next day following
the day on which such facsimile was sent, provided that a copy is also sent by
another method described herein. 

Governing Law and Dispute Resolution 

10.3        
(a)          This Agreement
shall be governed in all respects, including as to validity, interpretation and
effect, by the laws of the State of Nevada. 

(b)          
Dispute Resolution 

(i)          
Any dispute, controversy or claim arising out of, relating to, or in connection
with this Agreement, or the breach, termination or validity hereof, shall be
finally settled exclusively by arbitration. The arbitration shall be conducted
in accordance with the rules of the International Chamber of Commerce (the
“ICC”) in effect at the time of the arbitration, except as they may be modified
by mutual agreement of the parties. The seat of the arbitration shall be
Singapore, provided, that, the arbitrators may hold hearings in such other
locations as the arbitrators determine to be most convenient and efficient for
all of the parties to such arbitration under the circumstances. The arbitration
shall be conducted in the English language. 

(ii)          The
arbitration shall be conducted by three arbitrators. The party (or the parties,
acting jointly, if there are more than one) initiating arbitration (the
“Claimant”) shall appoint an arbitrator in its request for arbitration (the
“Request”). The other party (or the other parties, acting jointly, if there are
more than one) to the arbitration (the “Respondent”) shall appoint an arbitrator
within 30 days of receipt of the Request and shall notify the Claimant of such
appointment in writing. If within 30 days of receipt of the Request by the
Respondent, either party has not appointed an arbitrator, then that arbitrator
shall be appointed by the ICC. The first two arbitrators appointed in accordance
with this provision shall appoint a third arbitrator within 30 days after the
Respondent has notified Claimant of the appointment of the Respondent’s
arbitrator or, in the event of a failure by a party to appoint, within 30 days
after the ICC has notified the parties and any arbitrator already appointed of
the appointment of an arbitrator on behalf of the party failing to appoint. When
the third arbitrator has accepted the appointment, the two arbitrators making
the appointment shall promptly notify the parties of the appointment. If the
first two arbitrators appointed fail to appoint a third arbitrator or so to
notify the parties within the time period prescribed above, then the ICC shall
appoint the third arbitrator and shall promptly notify the parties of the
appointment. The third arbitrator shall act as Chair of the tribunal. 

(iii)         The arbitral
award shall be in writing, state the reasons for the award, and be final and
binding on the parties. The award may include an award of costs, including
reasonable attorneys’ fees and disbursements. In addition to monetary 

- 16 - 

damages, the arbitral tribunal shall
be empowered to award equitable relief, including, but not limited to, an
injunction and specific performance of any obligation under this Agreement. The
arbitral tribunal is not empowered to award damages in excess of compensatory
damages, and each party hereby irrevocably waives any right to recover punitive,
exemplary or similar damages with respect to any dispute, except insofar as a
claim is for indemnification for an award of punitive damages awarded against a
party in an action brought against it by an independent third party. The
arbitral tribunal shall be authorized in its discretion to grant pre-award and
post-award interest at commercial rates. Any costs, fees or taxes incident to
enforcing the award shall, to the maximum extent permitted by Law, be charged
against the party resisting such enforcement. Judgment upon the award may be
entered by any court having jurisdiction thereof or having jurisdiction over the
relevant party or its assets. 

(iv)          In
order to facilitate the comprehensive resolution of related disputes, and upon
request of any party to the arbitration proceeding, the arbitration tribunal
may, within 90 days of its appointment, consolidate the arbitration proceeding
with any other arbitration proceeding involving any of the parties relating to
this Agreement and the Other Transaction Agreements. The arbitration tribunal
shall not consolidate such arbitrations unless it determines that (x) there are
issues of fact or law common to the proceedings, so that a consolidated
proceeding would be more efficient than separate proceedings, and (y) no party
would be prejudiced as a result of such consolidation through undue delay or
otherwise. In the event of different rulings on this question by the arbitration
tribunal constituted hereunder and any tribunal constituted under the Other
Transaction Agreements, the ruling of the tribunal constituted under this
Agreement will govern, and that tribunal will decide all disputes in the
consolidated proceeding. 

(v)          
The parties agree that the arbitration shall be kept confidential and that the
existence of the proceeding and any element of it (including but not limited to
any pleadings, briefs or other documents submitted or exchanged, any testimony
or other oral submissions, and any awards) shall not be disclosed beyond the
tribunal, the ICC, the parties, their counsel and any person necessary to the
conduct of the proceeding, except as may be lawfully required in judicial
proceedings relating to the arbitration or otherwise, or as required by NASDAQ
rules or the rules of any other quotation system or exchange on which the
disclosing party’s securities are listed or applicable Law. 

(vi)          The
costs of arbitration shall be borne by the losing party unless otherwise
determined by the arbitration award. 

(vii)         All payments
made pursuant to the arbitration decision or award and any judgment entered
thereon shall be made in United States dollars, free from any deduction, offset
or withholding for Taxes. 

(viii)        Notwithstanding
this §10.3(b) or any other provision to the contrary in this Agreement, no party
shall be obligated to follow the foregoing arbitration 

- 17 - 

procedures where such party intends to
apply to any court of competent jurisdiction for an interim injunction or
similar equitable relief against any other party, provided there is no
unreasonable delay in the prosecution of that application. 

Binding Effect 

10.4                    
This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, successors and permitted assigns. 

Assignment 

10.5                    
This Agreement shall not be assignable or otherwise transferable by any party
hereto without the prior written consent of the other parties hereto, and any
purported assignment or other transfer without such consent shall be void and
unenforceable. 

Third Party Beneficiaries 

10.6                    
It is expressly agreed by the parties hereto that shall be a third party
beneficiary of all of the terms of this Agreement and shall be entitled to
enforce its rights as such under this Agreement. 

Amendment; Waivers, etc. 

10.7                    
No amendment, modification or discharge of this Agreement, and no waiver
hereunder, shall be valid or binding unless set forth in writing and duly
executed by the party against whom enforcement of the amendment, modification,
discharge or waiver is sought. Any such waiver shall constitute a waiver only
with respect to the specific matter described in such writing and shall in no
way impair the rights of the party granting such waiver in any other respect or
at any other time. Neither the waiver by any of the parties hereto of a breach
of or a default under any of the provisions of this Agreement, nor the failure
by any of the parties, on one or more occasions, to enforce any of the
provisions of this Agreement or to exercise any right or privilege hereunder,
shall be construed as a waiver of any other breach or default of a similar
nature, or as a waiver of any of such provisions, rights or privileges
hereunder. The rights and remedies herein provided are cumulative and none is
exclusive of any other, or of any rights or remedies that any party may
otherwise have at law or in equity. The rights and remedies of any party based
upon, arising out of or otherwise in respect of any inaccuracy or breach of any
representation, warranty, covenant or agreement or failure to fulfill any
condition shall in no way be limited by the fact that the act, omission,
occurrence or other state of facts upon which any claim of any such inaccuracy
or breach is based may also be the subject matter of any other representation,
warranty, covenant or agreement as to which there is no inaccuracy or breach.
The representations and warranties of Worldstar shall not be affected or deemed
waived by reason of any investigation made by or on behalf of Jewel (including
but not limited to by any of its advisors, consultants or representatives) or by
reason of the fact that Jewel or any of such advisors, consultants or
representatives knew or should have known that any such representation or
warranty is or might be inaccurate. 

- 18 - 

Entire Agreement 

10.8                    
This Agreement constitutes the entire agreement and supersede all prior
agreements and understandings, both written and oral, between the parties with
respect to the subject matter hereof. 

Severability 

10.9                    
If any provision, including any phrase, sentence, clause, section or subsection,
of this Agreement is invalid, inoperative or unenforceable for any reason, such
circumstances shall not have the effect of rendering such provision in question
invalid, inoperative or unenforceable in any other case or circumstance, or of
rendering any other provision herein contained invalid, inoperative, or
unenforceable to any extent whatsoever. 

Headings 

10.10                    The
headings contained in this Agreement are for purposes of convenience only and
shall not affect the meaning or interpretation of this Agreement. 

Counterparts 

10.11                    This
Agreement may be executed in several counterparts, each of which shall be deemed
an original and all of which shall together constitute one and the same
instrument. 

IN WITNESS WHEREOF, the parties have duly executed this
Agreement as of the date first above written. 

WORLDSTAR ENERGY CORP. 

	By:            
      "Michael Kinley"                                                                  
	               
         Authorized Signatory 
	               
         Name: Michael Kinley 
	               
         Title: CEO/CFO/Director 

JEWEL STAR GROUP LIMITED 

	By:            
      "TAY Thai Seng"                                                                   
	               
         Authorized Signatory 
	               
         Name: TAY Thai Seng (Richard) 
	               
         Title: Director 

- 19 - 

NATIONAL BASE INVESTMENT LIMITED 

	By:            
      "TAY Thai Seng"                                                                   
	               
         Authorized Signatory 
	               
         Name: TAY Thai Seng (Richard) 
	               
         Title: Director 

SCHEDULE A 

DISCLOSURE SCHEDULE 

	1. 	 JEWEL STAR GROUP LIMITED

	 	 	 	 
		a) 	 Business address – 2091, Gahood Villa,
        Baixin Zhuang, Shunyi District, 101300 Beijing, China

	 	 	 	 
		b) 	 i) 
	Shareholder - TAY Thai Seng ( 1 share of US$1.00 )
	 	 	 	 
			ii) 	 Director – TAY Thai Seng

	 	 	 	 
		c) 	 Authorized Share Capital – 50,000 shares
        of US$1.00 each

	 	 	 	 
		d) 	 Contracts & Agreements - None

	 	 	 	 
		e) 	 Bank Account - to be provided in writing prior
        to closing

	 	 	 	 
		f) 	 Only assets is 100% of shares of National
        Base Investment Limited

	 	 	 	 
		g) 	 Other business or operations – None

	 	 	 	 
		h) 	 Employees - None

	 	 	 	 
	2. 	 NATIONAL BASE INVESTMENT LIMITED

	 	 	 	 
		a) 	 Business address – 2091, Gahood Villa,
        Baixin Zhuang, Shunyi District, 101300 Beijing, China

	 	 	 	 
		b) 	 i) 
	Shareholder - Jewel Star Group Limited ( 1 share of US$1.00 )
	 	 	 	 
			iii) 	 Director – TAY Thai Seng

	 	 	 	 
		c) 	 Authorized Share Capital – 50,000 shares
        of US$1.00 each

	 	 	 	 
		d) 	 Contracts & Agreements - None

- 2 - 

	 	e) 	
      Bank Account – None

	 	 	 
	 	f) 	
      Only assets is 98 shares of Bulgan Gold Investment
      Limited

	 	 	 
	 	g) 	
      Other business or operations – None

	 	 	 
	 	h) 	
      Employees - None

	3. 	
      BULGAN GOLD INVESTMENT
LIMITED

	 	a) 	
      Business address – 2091, Gahood Villa, Baixin Zhuang,
      Shunyi District, 101300 Beijing, China

	 	b) 	
      i)        Shareholder
      - TAY Thai Seng ( 1 share of HK$1.00 )

	 		 ii) 
	National Base Investment Limited ( 49 shares of HK$1.00 each )
	 	 	 	 
	 		 iv) 
	Director – TAY Thai Seng
	 	 	 	 
	 	c) 	 Authorized Share Capital – HK$10,000
        divided into 10,000 shares of HK$1.00 each

	 	 	 	 
	 	d) 	 Contracts & Agreements –

	 	 	 	 
	 		1) 	 Loan Agreement with Bulgan Gold (HK) Ltd. for advancing
        US$3,714,286.00 to Bulgan Gold (HK) Ltd.

	 	 	 	 
	 		2) 	 Loan and Pledge Agreement with Worldstar for obtaining
        US$3,640,000 from Worldstar.

	 	 	 	 
	 		3) 	 Loan Agreement with Tay Thai Seng for obtaining US$74,286
        from Tay Thai Seng.

	 	 	 	 
	 	e) 	 Bank Account - to be provided in writing prior
        to closing

	 	 	 	 
	 		 Authorised Signatory: TAY Thai Seng

	 	 	 	 
	 	f) 	 Only asset is 52 shares (out of 100) of Bulgan
        Gold (Hong Kong) Limited

	 	 	 	 
	 	g) 	 Other business and operations – None

- 3 - 

	 	h) 	
      Employees – None

	4. 	
      BULGAN GOLD (HONG KONG)
LIMITED

	 	a) 	
      Business address – 5th Floor, Pico Tower, No.66
      Gloucester Road, Wanchai, Hong Kong

	 	b) 	
      i)        Shareholders
      -

	 	1) 	
      HARTANTO Hady (18 shares of HK$1.00 each )

	 	 	 
	 	2) 	
      RADNAABAZAR Bazar (30 shares of HK$1.00 each )

	 	 	 
	 	3) 	
      Bulgan Gold Investment Limited (52 shares of HK$1.00
      each)

	 	ii) 	
      Directors –

	 	 	 	 
	 		1) 	
      HARTANTO Hady

	 	 	 	 
	 		2) 	
      RADNAABAZAR Bazar

	 	 	 	 
	 		3) 	
      YEONG Chee Thong

	 	 	 	 
	 		4) 	
      TAY Thai Seng

	 	c) 	 Share Capital – HK$10,000 divided into
        10,000 shares of HK$1.00 each

	 	 	 	 
	 	d) 	 Contracts & Agreements

	 	 	 	 
	 		1) 	 Bulgan Gold Shareholder’s Agreement.

	 	 	 	 
	 		2) 	 Loan Agreement with Radnaabazar Bazar for obtaining
        US$2,142,857 from Radnaabazar Bazar.

	 	 	 	 
	 		3) 	 Loan Agreement with Bulgan Gold Investment Limited for
        obtaining US$3,714,286 from Bulgan Gold Investment Limited.

	 	 	 	 
	 		4) 	 Loan Agreement with Hartanto Hady for obtaining US$1,285,714
        from Hartanto Hady.

	 	 	 	 
	 	e) 	 Bank Account - to be provided in writing prior
        to closing

	 	 	 	 
	 	f) 	 Only asset is 100% of Bulgan Gold LLC

	 	 	 	 
	 	g) 	 Other business and operations – None

- 4 - 

	 	h) 	
      Employees - None

	5. 	
      BULGAN GOLD LLC

	 	a) 	
      Business Address – B-1, “Greenhouse” building, Chinggis
      Avenue, the 1st horoo, Khan- Uul District, Ulaanbataar,
      Mongolia

	 	b) 	
      1)        Shareholder
      – Bulgan Gold Hong Kong Limited

	 		 2)        Directors
        – Radnaabazaar BAZAR

	 	 	 
	 	c) 	 Share Capital – 100 shares with a par value of
        US$100 per share

	 	 	 
	 	d) 	 Contracts and Agreements – None

	 	 	 
	 	e) 	 Bank Account - to be provided in writing prior to closing

	 	 	 
	 	f) 	 Only asset is 50 Licenses

	 	 	 
	 	g) 	 Other business and operations – None

	 	 	 
	 	h) 	 Employees - None

SCHEDULE B 

LIST OF LICENSES 

 

See Exhibit A to Schedule C 
to this Agreement 

SCHEDULE C

MONGOLIAN LEGAL COUNSEL OPINION

SCHEDULE D

BULGAN GOLD SHAREHOLDERS’ AGREEMENTBA CREDIT CARD TRUST

as Issuer

 

CLASS A(2007-2) TERMS DOCUMENT

dated as of February 16, 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 A(2007-2) 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
 	
            7
 
	
             
 	
             
 	
             
 
	
            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 A(2007-2) Notes; Depository; Denominations
 	
            9
 
	
             
 	
             
 	
             
 
	
            Section 2.07.
 	
            Delivery and Payment for the Class A(2007-2) Notes
 	
            9
 
	
             
 	
             
 	
             
 
	
            Section 2.08.
 	
            Targeted Deposits to the Accumulation Reserve Account
 	
            9
 
	
             
 	
             
 	
             
 
	
            ARTICLE III
 	
             
 	
             
 
	
            Representations and Warranties
 
	
             
 
	
            Section 3.01.
 	
            Issuer’s Representations and Warranties
 	
            10
 
				

 

 

 

 

THIS CLASS A(2007-2) 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 February 16, 2007.

 

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

(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 A(2007-2) 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 A(2007-2) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the Monthly Period following the first Transfer Date following and including the December 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 June 2009 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 August 2009 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 A(2007-2) Notes and (ii) the date on which
the Class A(2007-2) 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 A(2007-2) Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2007-2) Note and duly executed and authenticated in accordance with the Indenture.

 

“Class A(2007-2) Noteholder” means a Person in whose name a Class A(2007-2) Note is registered in the Note Register.

 

 

2

 

 

 

“Class A(2007-2) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the 

Class A(2007-2) 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 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).

 

“Controlled Accumulation Amount” means $208,333,333.34; 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 January 18, 2011.

 

“Initial Dollar Principal Amount” means $2,500,000,000.

 

“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 April 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 February 16, 2007.

 

“Legal Maturity Date” means June 17, 2013.

 

“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.

 

 

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“LIBOR Determination Date” means February 14, 2007 for the period from and including the Issuance Date to but excluding April 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.

 

“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 0.02% 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 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 December 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.

 

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“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 A(2007-2) 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 Note Rating Agencies shall have provided prior written confirmation that a Ratings Effect will not occur with respect to such change.

 

“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 $2,500,000,000.

 

“Telerate Page 3750” means the display page currently so designated on the Moneyline Telerate Service (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices).

 

“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.  

 

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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 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 A(2007-2) Notes

Section 2.01.     Creation and Designation.  There is hereby created a tranche of BAseries Class A Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the “BAseries Class A(2007-2) Notes.”

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

(a)          For the Class A(2007-2) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal to 8.72093% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-2) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2007-2) Notes shall have occurred, if an Event of Default and acceleration of the Class A(2007-2) Notes shall have occurred or if the Class A Usage of the Class B Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-2) Notes 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 A Usage of Class B Required Subordinated Amount exceeded zero.

(b)          For the Class A(2007-2) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to 7.55814% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-2) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2007-2) Notes shall have occurred, if an Event of Default and acceleration of the Class A(2007-2) Notes shall have occurred or if the Class A Usage of the Class C Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-2) Notes 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 A Usage of Class C Required Subordinated Amount exceeded zero.

(c)          The Issuer may change the percentages set forth in clause (a) or (b) above 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 either of such percentages will not result in a Ratings Effect with respect to any Outstanding Notes of the BAseries and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion.

 Section 2.03.     Interest Payment.

(a)          For each Interest Payment Date, the amount of interest due with respect to the Class A(2007-2) 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(2007-2) Notes determined as of the Record Date preceding the related Transfer Date.  Interest on the 

 

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Class A(2007-2) 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 A(2007-2) Interest Funding sub-Account the portion of BAseries Available Funds allocable to the Class A(2007-2) Notes.

 Section 2.04.     Calculation Agent; Determination of LIBOR.

(a)          The Issuer hereby agrees that for so long as any Class A(2007-2) 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 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 Telerate Page 3750 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 Telerate Page 3750, 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.

 

 

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Section 2.05.     Payments of Interest and Principal.

(a)          Any installment of interest or principal, if any, payable on any Class A(2007-2) 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 A(2007-2) 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(2007-2) Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class A(2007-2) Termination Date.

Section 2.06.     Form of Delivery of Class A(2007-2) Notes; Depository; Denominations.

(a)          The Class A(2007-2) 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 A(2007-2) Notes shall be The Depository Trust Company, and the Class A(2007-2) Notes shall initially be registered in the name of Cede & Co., its nominee.

(c)          The Class A(2007-2) 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 A(2007-2) Notes.  The Issuer shall execute and deliver the Class A(2007-2) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2007-2) 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]

 

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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/ Penelope S. Johnson                         
 
	
            Penelope S. Johnson
 
	
            Vice President
 
	
             
 
	
             
 
	
             
 
	
            THE BANK OF NEW YORK, as Indenture Trustee
 
	
            and not in its individual capacity
 
	
             
 
	
             
 
	
            By:   /s/ Catherine L. Cerilles                        
 
	
            Name: Catherine L. Cerilles
 
	
            Title:    Vice President
 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to the Class A(2007-2) Terms Document]

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