Document:

Warrant Agreement

 Exhibit 10.16 
 WARRANT AGREEMENT 
 AGREEMENT, dated this 16th day of June, 2006 by and between Action Products International, Inc., a Florida corporation (the “Company”), and Registrar and Transfer
Company, as Warrant Agent (the “Warrant Agent”). 
 WHEREAS, each record holder of the Company’s common shares, $0.001 par
value (the “Common Shares”), on the record date of January 18, 2006, or such other date as determined by the Company and the Placement Agreement (the “Record Date”), will receive one (1) warrant (a “Warrant”)
to purchase an additional Common Share for each one (1) Common Share held on the Record Date at an exercise price as determined herein; and 
 WHEREAS, the Warrants shall be exercisable from the date the Securities and Exchange Commission declares effective a registration statement under the Securities Act of 1933, and amended (the “1933 Act”) covering the offer and sale
of the Common Shares issuable upon exercise of the Warrants (the “Effective Date”) until January 31, 2007 unless earlier redeemed as provided herein; and 
 WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration, transfer and exchange of certificates
representing the Warrants and the exercise of the Warrants. 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements
hereinafter set forth and for the purpose of defining the terms and provisions of the Warrants and the certificates representing the Warrants and the respective rights and obligations thereunder of the Company, the holders of certificates
representing the Warrants and the Warrant Agent, the parties hereto agree as follows: 
 1. Definitions. Capitalized terms used herein
and not otherwise defined shall have the following meanings, unless the context shall otherwise require: 
 “Corporate
Office” shall mean the office of the Warrant Agent (or its successor) at which at any particular time its principal business shall be administered, which office is located on the date hereof at 10 Commerce Drive, Cranford, New Jersey 07016.

 “Exercise Date” shall mean as to any Warrant, the date on which the Warrant Agent shall have received both
(a) the Warrant Certificate representing such Warrant, with the Exercise Form thereon duly executed by the Registered Holder hereof with such Registered Holder’s signature guaranteed, and (b) payment in cash or by bank or
cashier’s check made payable to the Warrant Agent for the account of the Company, of the amount in lawful money of the United States of America equal to the applicable Exercise Price. 
 “Exercise Price” shall mean (a) $ 3.25 per Common Share, if the Exercise Date is after the Effective Date but on or
before the date six (6) months after the Effective Date, and (b) $3.75 per Common Share, if the Exercise Date is after the date six (6) months after the Effective Date but on or before the Expiration Date, subject to modification and
adjustment as provided in Section 8. 
 “Expiration Date” shall mean, unless the Warrants are redeemed as
provided in Section 9 hereof prior to such date, 5:00 p.m. (Eastern time) on the date one (1) year after the Effective Date. 
 “Registered Holder” shall mean the person in whose name any certificate representing the Warrants shall be registered on the books maintained by the Warrant Agent pursuant to Section 6. 

 “Warrant Certificate” shall mean a certificate representing each of the
Warrants substantially in the form annexed hereto as Exhibit A. 
 2. Warrants and Issuance of Warrant Certificates. 
 (a) Each Warrant shall entitle the Registered Holder of the Warrant Certificate representing such Warrant to purchase at the Exercise
Price therefor from the Effective Date until the Expiration Date one (1) Common Share upon the exercise thereof, subject to modification and adjustment as provided in Section 8. 
 (b) From time to time, up to the Expiration Date, the Warrant Agent shall countersign and deliver Warrant Certificates in required
denominations of one or whole number multiples thereof to the person entitled thereto in connection with any transfer or exchange permitted under this Agreement. No Warrant Certificates shall be issued except (i) Warrant Certificates initially
issued hereunder, (ii) those issued on or after the Effective Date, upon the exercise of fewer than all Warrants represented by any Warrant Certificate, to evidence any unexercised Warrants held by the exercising Registered Holder,
(iii) Warrant Certificates issued upon any transfer or exchange of Warrants, (iv) Warrant Certificates issued in replacement of lost, stolen, destroyed or mutilated Warrant Certificates pursuant to Section 7, and (v) at the
option of the Company, Warrant Certificates in such form as may be approved by its Board of Directors, to reflect any adjustment or change in the Exercise Price, the number of shares of Common Shares purchasable upon exercise of the Warrants or the
redemption price therefor made pursuant to Section 9 hereof. 
 3. Form and Execution of Warrant Certificates. The Warrant
Certificates shall be substantially in the form annexed hereto as Exhibit A and may have such letters, numbers or other marks of identification or designation and such legends, summaries or endorsements printed, lithographed or engraved thereon as
the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock
exchange or market on which the Warrants may be listed, or to conform to usage. The Warrant Certificates shall be dated the date of issuance thereof (whether upon initial issuance, transfer, exchange or in lieu of mutilated, lost, stolen or
destroyed Warrant Certificates). Warrant Certificates shall be executed on behalf of the Company by its Chairman of the Board, President or any Vice President and by its Treasurer or an Assistant Treasurer or its Secretary or an Assistant Secretary,
by manual signatures or by facsimile signatures printed thereon, and shall have imprinted thereon a facsimile of the Company’s seal. Warrant Certificates shall be manually countersigned by the Warrant Agent and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Warrant Certificates shall cease to be such officer of the Company before the date of issuance of the Warrant Certificates or before
countersignature by the Warrant Agent and issue and delivery thereof, such Warrant Certificates, nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the same force and effect as though the person who signed such
Warrant Certificates had not ceased to be such officer of the Company. 
 4. Exercise. 
 (a) Warrants may be exercised commencing at any time on or after the Effective Date, but not after the Expiration Date, upon the terms and
subject to the conditions set forth herein and in the applicable Warrant Certificate. A Warrant shall be deemed to have been exercised immediately prior to the close of business on the Exercise Date, provided that the Warrant Certificate
representing such Warrant, with the Exercise Form thereon duly executed by the Registered Holder thereof with such Registered Holder’s signature guaranteed, together with payment in cash or by bank or cashier’s check made payable to the
order of the Company, of an amount in lawful money, of the United States of America equal to the applicable Exercise Price, has been received in good funds by the Warrant Agent or the Company. If received by the Company, the Company shall deliver
the original Warrant Certificate and Exercise Form to the Warrant Agent as soon as practicable. The person entitled to receive the securities deliverable upon such exercise shall be treated for all purposes as the holder of such securities as of the
close of business on the Exercise Date. As soon as practicable on or after the Exercise Date and in any event within five business days after such date, the Warrant Agent on behalf of the Company shall cause to be issued to the person or persons
entitled to receive the same a certificate or certificates for the 

 
Common Shares deliverable upon such exercise, and the Warrant Agent shall deliver the same to the person or persons entitled thereto. Upon the exercise of
Warrants, the Warrant Agent shall promptly notify the Company in writing of such fact and of the number of securities delivered upon such exercise and shall cause all payments of an amount in cash or by check made payable to the order of the
Company, equal to the Exercise Price, to be deposited promptly in the Company’s bank account. 
 (b) If any Warrants are
exercised which exercise was solicited by a broker-dealer with whom the Company agreed in writing to pay a solicitation fee for exercise of the Warrant (a “Broker-Dealer”), then the soliciting Broker-Dealer shall be entitled to receive
from the Company upon exercise of each of the Warrants so exercised, a fee of not less than six percent (6%) and not greater than ten percent (10%), the exact percentage to be determined by a separate agreement between the Company and the
Broker-Dealer, of the aggregate price of the Warrants so exercised (the “Exercise Fee”); provided, that, at the time of exercise, (i) the market price of the Company’s Common Shares is equal to or greater than the Exercise Price,
(ii) the Broker-Dealer is a member of the National Association of Securities Dealers, Inc., (iii) the Warrant is not held in a discretionary account, unless prior specific written approval for exercise has been received by the
Broker-Dealer from its customer, (iv) disclosure of the compensation arrangement is made in documents provided to the holders of the Warrants, and (v) the solicitation of the Warrant is not in violation of Regulation M promulgated under
the Securities Exchange Act of 1934, as amended. Within five (5) days after the end of each month, the Warrant Agent will notify the Company of each Warrant Certificate which has been properly completed for exercise by holders of Warrants
during the last month. The Warrant Agent will provide the Company with such information, in connection with the exercise of each Warrant, as the Company shall reasonably request. In the event that an Exercise Fee is paid to a Broker-Dealer with
respect to a Warrant which was not properly completed for exercise or in respect of which such Broker-Dealer is not entitled to an Exercise Fee, such Broker-Dealer will return such Exercise Fee to the Company. 
 (c) The Company shall not be obligated to issue any fractional share interests or fractional warrant interests upon the exercise of any
Warrant or Warrants, nor shall it be obligated to issue scrip or pay cash in lieu of fractional interests. Any fractional interest shall be rounded up to the nearest whole figure. 
 (d) Anything in this Section 4 notwithstanding, no Warrant will be exercisable unless at the time of exercise the Company has filed
with the Securities and Exchange Commission, and there shall be then effective, a registration statement under the 1933 Act covering the offer and sale of the Common Shares issuable upon exercise of such Warrant and such offer and sale of the Common
Shares have been so registered or qualified or deemed to be exempt under the securities laws of the state of residence of the holder of such Warrant. 
 (e) In addition, if it is required by law and upon instruction by the Company, the Warrant Agent will deliver to each Registered Holder a prospectus that complies with the provisions of Section 5 of the 1933 Act
and the Company agrees to supply the Warrant Agent with a sufficient number of prospectuses to effectuate that purpose. 
 5. Reservation
of Shares; Payment of Taxes. 
 (a) The Company covenants that it will at all times reserve and keep available out of its
authorized Common Shares, solely for the purpose of issuance upon exercise of warrants, such number of Common Shares as shall then be issuable upon the exercise of all outstanding Warrants. The Company covenants that all Common Shares which shall be
issuable upon exercise of the Warrants shall, at the time of delivery thereof, be duly and validly issued and fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens and charges with respect to the issuance thereof.

 (b) The Company shall pay all documentary, stamp or similar taxes and other governmental charges that may be imposed with
respect to the issuance of Warrants, or the issuance or delivery of any Common Shares upon exercise of the Warrants; provided, however, that if Common Shares are to be delivered in a name other than the name of the Registered Holder of the Warrant
Certificate representing any Warrant being exercised, then no such delivery shall be 

 
made unless the person requesting the same has paid to the Warrant Agent the amount of transfer taxes or charges incident thereto, if any. 
 6. Exchange and Registration of Transfer. 
 (a) Warrant Certificates may be exchanged for other Warrant Certificates representing an equal aggregate number of Warrants or may be transferred in whole or in part. Warrant Certificates to be so exchanged shall be
surrendered to the Warrant Agent at its Corporate Office, and, upon satisfaction of the terms and conditions hereof, the Company shall execute and the Warrant Agent shall countersign, issue and deliver in exchange therefor the Warrant Certificate or
Certificates which the Registered Holder making the exchange shall be entitled to receive. 
 (b) The Warrant Agent shall
keep, at its Corporate Office, books in which, subject to such reasonable regulations as it may prescribe, it shall register Warrant Certificates and the transfer thereof. Upon due presentment for registration of transfer of any Warrant Certificate
at such office, the Company shall execute and the Warrant Agent shall issue and deliver to the transferee or transferees a new Warrant Certificate or Certificates representing an equal aggregate number of Warrants. 
 (c) With respect to any Warrant Certificates presented for registration of transfer, or for exchange or exercise, the Exercise Form or
Assignment Form, as the case may be, on the reverse thereof shall be duly endorsed or be accompanied by a written instrument or instruments of transfer and subscription, in form satisfactory to the Company and the Warrant Agent, duly executed by the
Registered Holder thereof with such Registered Holder’s signature guaranteed. 
 (d) A service charge may be imposed by
the Warrant Agent for any exchange, registration or transfer of Warrant Certificates. 
 (e) All Warrant Certificates
surrendered for exercise or for exchange shall be promptly canceled by the Warrant Agent. 
 (f) Prior to due presentment for
registration or transfer thereof, the Company and the Warrant Agent may deem and treat the Registered Holder of any Warrant Certificate as the absolute owner thereof of each Warrant represented thereby (notwithstanding any notations of ownership or
writing thereon made by anyone other than the Company or the Warrant Agent) for all purposes and shall not be affected by any notice to the contrary. 
 7. Loss or Mutilation. Upon receipt by the Company and the Warrant Agent of evidence satisfactory to them of the ownership of and the loss, theft, destruction or mutilation of any Warrant Certificate and (in
the case of loss, theft or destruction) of indemnity satisfactory to them, and (in case of mutilation) upon surrender and cancellation thereof, the Company shall execute and the Warrant Agent shall countersign and deliver in lieu thereof a new
Warrant Certificate representing an equal aggregate number of Warrants. Applicants for a substitute Warrant Certificate shall also comply with such other reasonable requests and pay such other reasonable costs and expenses as the Warrant Agent may
impose. 
 8. Adjustments of Number and Kind of Shares Purchasable and Exercise Price. The number and kind of securities or other
property purchasable upon exercise of a Warrant shall be subject to adjustment from time to time upon the occurrence, after the date hereof, of any of the following events: 
 (a) In case the Company shall (i) pay a dividend in, or make a distribution of, shares of capital stock on its outstanding Commo 
 n Shares, (ii) subdivide its outstanding Common Shares into a greater number of such shares or (iii) combine its outstanding Common Shares into
a smaller number of such shares, the total number of Common Shares purchasable upon the exercise of each Warrant outstanding immediately prior thereto shall be adjusted so that the holder of any Warrant Certificate thereafter surrendered for
exercise shall be entitled to receive at the same aggregate Exercise Price the number of shares of capital stock (of one or more classes) which such holder would have owned or have been entitled to receive immediately 

 
following the happening of any of the events described above had such Warrant been exercised in full immediately prior to the record date with respect to
such event. Any adjustment made pursuant to this subsection shall, in the case of a stock dividend or distribution, become effective as of the record date therefor and, in the case of a subdivision or combination, be made as of the effective date
thereof. If, as a result of an adjustment made pursuant to this subsection, the holder of any Warrant Certificate thereafter surrendered for exercise shall become entitled to receive shares of two or more classes of capital stock of the Company, the
Board of Directors of the Company (whose determination shall be conclusive and shall be evidenced by a Board resolution filed with the Warrant Agent) shall determine the allocation of the adjusted Exercise Price between or among shares of such
classes of capital stock. 
 (b) In the event of a capital reorganization or a reclassification of the Common Shares (except as provided in
subsection a. above or subsection d. below), any Registered Holder, upon exercise of Warrants, shall be entitled to receive, in substitution for the Common Shares to which such Registered Holder would have become entitled upon exercise immediately
prior to such reorganization or reclassification, the shares (of any class or classes) or other securities or property of the Company (or cash) that such Registered Holder would have been entitled to receive at the same aggregate Exercise Price upon
such reorganization or reclassification if such Warrants had been exercised immediately prior to the record date with respect to such event; and in any such case, appropriate provision (as determined by the Board of Directors of the Company, whose
determination shall be conclusive and shall be evidenced by a certified Board resolution filed with the Warrant Agent) shall be made for the application of this subsection with respect to the rights and interests thereafter of the Registered Holders
(including but not limited to the allocation of the Exercise Price between or among shares of classes of capital stock), to the end that this subsection (including the adjustments of the number of Common Shares or other securities purchasable and
the Exercise Price thereof) shall thereafter be reflected, as nearly as reasonably practicable, in all subsequent exercises of the Warrants for any shares or securities or other property (or cash) thereafter deliverable upon the exercise of the
Warrants. 
 (c) Whenever the number of Common Shares or other securities purchasable upon exercise of a Warrant is adjusted as provided in
this Section, the Company will promptly file with the Warrant Agent a certificate signed by a Chairman or co-Chairman of the Board or the President or a Vice President of the Company and by the Treasurer or an Assistant Treasurer or the Secretary or
an Assistant Secretary of the Company setting forth the number and kind of securities or other property purchasable upon exercise of a Warrant, as so adjusted, stating that such adjustments in the number or kind of shares or other securities or
property conform to the requirements of this Section, and setting forth a brief statement of the facts accounting for such adjustments. Promptly after receipt of such certificate, the Company, or the Warrant Agent at the Company’s request, will
deliver, by first-class, postage prepaid mail, a brief summary thereof (to be supplied by the Company) to the registered holders of the outstanding Warrant Certificates; provided, however, that failure to file or to give any notice required under
this subsection, or any defect therein, shall not affect the legality or validity of any such adjustments under this Section. 
 (d) In case
of any consolidation of the Company with, or merger of the Company into, another corporation or entity (other than a consolidation or merger which does not result in any reclassification or change of the outstanding Common Shares), or in case of any
sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety, the corporation or entity formed by such consolidation or merger or the corporation or entity which shall have
acquired such assets, as the case may be, shall execute and deliver to the Warrant Agent a supplemental warrant agreement providing that the holder of each Warrant then outstanding shall have the right thereafter (until the expiration of such
Warrant) to receive, upon exercise of such Warrant, solely the kind and amount of shares of stock and other securities and property (or cash) receivable upon such consolidation, merger, sale or transfer by a holder of the number of Common Shares of
the Company for which such Warrant might have been exercised immediately prior to such consolidation, merger, sale or transfer. Such supplemental warrant 

 
agreement shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided in this Section. The above
provision of this subsection shall similarly apply to successive consolidations, mergers, sales or transfers. The Warrant Agent shall not be under any responsibility to determine the correctness of any provision contained in any such supplemental
warrant agreement relating to either the kind or amount of shares of capital stock or securities or property (or cash) purchasable by holders of Warrant Certificates upon the exercise of their Warrants after any such consolidation, merger, sale or
transfer or of any adjustment to be made with respect thereto, but may accept as conclusive evidence of the correctness of any such provisions, and shall be protected in relying upon, a certificate of a firm of independent certified public
accountants (who may be the accountants regularly employed by the Company) with respect thereto. 
 (e) Irrespective of any adjustments in the
number or kind of shares issuable upon exercise of Warrants, Warrant Certificates theretofore or thereafter issued may continue to express the same price and number and kind of shares as are stated in the similar Warrant Certificates initially
issuable pursuant to this Agreement. 
 (f) The Company may retain a firm of independent public accountants of recognized standing, which may
be the firm regularly retained by the Company, selected by the Board of Directors of the Company or the Audit Committee of said Board, and not disapproved by the Warrant Agent, to make any computation required under this Section, and a certificate
signed by such firm shall, in the absence of fraud or gross negligence, be conclusive evidence of the correctness of any computation made under this Section. 
 (g) For the purpose of this Section 8, the term “Common Shares” shall mean (i) the Common Shares or (ii) any other class of stock resulting from successive changes or reclassifications of such
Common Shares consisting solely of changes in par value, or from par value to no par value, or from no par value to par value. In the event that at any time as a result of an adjustment made pursuant to this Section, the holder of any Warrant
thereafter surrendered for exercise shall become entitled to receive any shares of capital stock of the Company other than Common Shares, thereafter the number of such other shares so receivable upon exercise of any Warrant shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Shares contained in this Section, and all other provisions of this Agreement, with respect to the Common Shares,
shall apply on like terms to any such other shares. 
 (h) Before taking any action that would cause an adjustment pursuant to Section 8
hereof reducing the portion of the Exercise Price required to purchase one share of capital stock below the then par value (if any) of a share of such capital stock, the Company will use its best efforts to take any corporate action which, in the
opinion of its counsel, may be necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such capital stock. 
 9. Redemption. 
 (a) Commencing on the Effective Date, the Company may, on twenty-one
(21) days’ prior written notice redeem all the Warrants at $0.001 per Warrant. All Warrants must be redeemed if any are redeemed. 
 (b) In the event the Company exercises its right to redeem all of the Warrants, it shall give or cause to be given notice to the Registered Holders of the Warrants, by mailing to such Registered Holders a notice of
redemption, first class, postage prepaid, not later than the twenty-first (21st) day before the date fixed for
redemption, at their last address as shall appear on the records of the Warrant Agent. Any notice mailed in the manner provided herein shall be conclusively presumed to have been duly given whether or not the Registered Holder receives such notice.

 (c) The notice of redemption shall specify (i) the redemption price, (ii) the
date fixed for redemption, (iii) the place where the Warrant Certificate shall be delivered and the redemption price shall be paid, and (iv) that the right to exercise the Warrant shall terminate at 5:00 p.m. (New York time) on the
business day immediately preceding the date fixed for redemption. The date fixed for the redemption of the Warrants shall be the Redemption Date. No failure to mail such notice nor any defect therein or in the mailing thereof shall affect the
validity of the proceedings for such redemption. An affidavit of the Warrant Agent or the Secretary or Assistant Secretary of the Company that notice of redemption has been mailed shall, in the absence of fraud, be prima facie evidence of the facts
stated therein. 
 (d) From and after the Redemption Date, all rights of the Registered Holders (except the right to receive
the redemption price) shall terminate, but only if (i) no later than one day prior to the redemption date the Company shall have irrevocably deposited with the Warrant Agent as paying agent a sufficient amount to pay on the Redemption Date the
redemption price for all Warrants called for redemption and (ii) the notice of redemption shall have stated the name and address of the Warrant Agent and the intention of the Company to deposit such amount with the Warrant Agent no later than
one day prior to the Redemption Date. 
 (e) The Warrant Agent shall pay to the holders of record of redeemed Warrants all
monies received by the Warrant Agent for the redemption of Warrants to which the holders of record of such redeemed Warrants who shall have surrendered their Warrants are entitled. 
 (f) Any amounts deposited with the Warrant Agent that are not required for redemption of Warrants may be withdrawn by the Company. Any
amounts deposited with the Warrant Agent that shall be unclaimed after three (3) months after the redemption date may be withdrawn by the Company, and thereafter the holders of the Warrants called for redemption for which such funds were
deposited shall look solely to the Company for payment. The Company shall be entitled to the interest, if any, on funds deposited with the Warrant Agent and the holders of redeemed Warrants shall have no right to any such interest. 
 (g) Any right to exercise a warrant shall terminate at 5:00 p.m. (New York time) on the business day immediately preceding the Redemption
Date. The redemption price payable to the Registered Holders shall be mailed to such persons at their addresses of record. 
 10.
Concerning the Warrant Agent. 
 (a) The Warrant Agent acts hereunder as agent and in a ministerial capacity for the
Company, and its duties shall be determined solely by the provisions hereof. The Warrant Agent shall not, by issuing and delivering Warrant Certificates or by any other act hereunder, be deemed to make any representations as to the validity or value
or authorization of the Warrant Certificates or the Warrants represented thereby or of any securities or other property delivered upon exercise of any Warrant or whether any stock issued upon exercise of any Warrant is fully paid and nonassessable.

 (b) The Warrant Agent shall not at any time be under any duty or responsibility to any holder of Warrant Certificates to
make or cause to be made any adjustment to the Warrant provided in this Agreement, or to determine whether any fact exists which may require any such adjustment, or with respect to the nature or extent of any such adjustment, when made, or with
respect to the method employed in making the same, it shall not (i) be liable for any recital or statement of fact contained herein or for any action taken, suffered or omitted by it in reliance on any Warrant Certificate or other document or
instrument believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties, (ii) be responsible for any failure on the part of the Company to comply with any of its covenants and obligations
contained in this Agreement or in any Warrant Certificate, or (iii) be liable for any act or omission in connection with this Agreement except for its own gross negligence or willful misconduct. 

 (c) The Warrant Agent may at any time consult with counsel satisfactory to it (who may be
counsel for the Company) and shall incur no liability or responsibility for any action taken, suffered or omitted by it in good faith in accordance with the opinion or advice of such counsel. 
 (d) Any notice, statement, instruction, request, direction, order or demand of the Company shall be sufficiently evidenced by an
instrument signed by the Chairman of the Board of Directors, Vice-Chairman or Secretary (unless other evidence in respect thereof is herein specifically prescribed). The Warrant Agent shall not be liable for any action taken, suffered or omitted by
it in accordance with such notice, statement, instruction, request, direction, order or demand. 
 (e) The Company agrees to
pay the Warrant Agent reasonable compensation for its services hereunder and to reimburse it for its reasonable expenses hereunder; the Company further agrees to indemnify the Warrant Agent and save it harmless against any and all losses, expenses
and liabilities, including judgments, costs and counsel fees, for anything done or omitted by the Warrant Agent in the execution of its duties and powers hereunder except losses, expenses and liabilities arising as a result of the Warrant
Agent’s gross negligence or willful misconduct. 
 (f) The Warrant Agent may resign its duties and be discharged from all
further duties and liabilities hereunder (except liabilities arising as a result of the Warrant Agent’s own negligence or willful misconduct), after giving 60 days prior written notice to the Company. At least 15 days prior to the date such
resignation is to become effective, the Warrant Agent shall cause a copy of such notice of resignation to be mailed to the Registered Holder of each Warrant Certificate at the Company’s expense. Upon such resignation the Company shall appoint
in writing a new warrant agent. After acceptance in writing of such appointment by the new warrant agent is received by the Company, such new warrant agent shall be vested with the same powers, rights, duties and responsibilities as if it had been
originally named herein as the warrant agent, without any further assurance, conveyance, act or deed; but if for any reason it shall be necessary or expedient to execute and deliver any further assurance, conveyance, act or deed, the same shall be
done at the expense of the Company and shall be legally and validly executed and delivered by the resigning Warrant Agent. Not later than the effective date of any such appointment the Company shall file notice thereof with the resigning Warrant
Agent and shall forthwith cause a copy of such notice to be mailed to the Registered Holder of each Warrant Certificate. 
 (g) Any corporation into which the Warrant Agent or any new warrant agent may be converted or merged, any corporation resulting from any consolidation to which the Warrant Agent or any new warrant agent shall be a party, or any corporation
succeeding to the corporate trust business of the Warrant Agent or any new warrant agent shall be a successor warrant agent under this Agreement without any further act, provided that such corporation is eligible for appointment as successor to the
Warrant Agent under the provisions of the preceding paragraph. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed to the Company and to the Registered Holders of each Warrant Certificate.

 (h) Except as otherwise provided in this Agreement, if any act or event which is required under this Agreement to otherwise
occur on a Saturday, Sunday or any other day the Warrant Agent is not open for business, then such act or event shall occur on the next successive day that is not a Saturday, Sunday or day in which the Warrant Agent is not open for business.

 11. Rights of Registered Holders. No Registered Holder, as such, shall have any rights of a shareholder of the Company, either at
law or equity, and the rights of the Registered Holders, as such, are limited to those rights expressly provided in this Agreement or in the Warrant Certificates. The Company and the Warrant Agent may treat the registered Registered Holder in
respect of any Warrant Certificates as the absolute owner thereof for all purposes notwithstanding any notice to the contrary. 
 12.
Modification of Agreement. The Warrant Agent and the Company may by supplemental agreement make any changes or corrections in this Agreement without the approval of any holders of Warrants (i) that they shall deem appropriate to cure any
ambiguity or to correct any defective or inconsistent provision or manifest mistake or error herein 

 
contained; (ii) that they may deem necessary or desirable and which shall not adversely affect the interests of the holders of Warrant Certificates; or
(iii) which may be required by law; provided, however, that this Agreement shall not otherwise be modified, supplemented or altered except with the consent in writing of the Registered Holders representing not less than 50% of the Warrants then
outstanding; provided, further, that no change in the number of the securities purchasable upon the exercise of any Warrant, or an increase in the Exercise Price therefor, shall be, made without the consent in writing of the Registered Holder of the
Warrant Certificate, other than such changes as are specifically permitted or prescribed by this Agreement as originally executed. 
 13.
Notices. All notices, requests, consents and other communications hereunder shall be in writing and shall be deemed to have been made when delivered, with confirmation received, or one business day after deposited with a nationally recognized
overnight courier, or five days after mailed first-class postage prepaid, if to the Registered Holder of a Warrant Certificate, at the address of such holder as shown on the registry books maintained by the Warrant Agent; if to the Company at:

 Action Products International, Inc. 
 1101 North Keller Road, Suite E 
 Orlando, Florida 32810 
 Attn: Ronald S. Kaplan 
 Phone: (407) 481-8007 
 With a copy to: 
 Paykin, Greenblatt, Lesser & Krieg LLP 
 185 Madison Avenue, 10th Floor 
 New York, NY 10016 
 Attn: Richard Rosenblum, Esq. 
 Phone: (212) 725-4423 
 or at such other address as may have been furnished to the Warrant Agent in writing by the
Company, and if to the Warrant Agent, at its Corporate Office. 
 14. Governing Law; Venue. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida without giving effect to conflicts of laws. In the event the Company, the Warrant Agent or any Registered Holder commences any litigation, proceeding or other legal action in connection
with or relating to this Agreement or any matters described or contemplated herein, the Company, the Warrant Agent and the Registered Holders hereby (a) agree under all circumstances absolutely and irrevocably to institute any litigation,
proceeding or other legal action in a court of competent jurisdiction located within the County of Orange, State of Florida, whether a state or federal court; (b) agree that in the event of any such litigation, proceeding or action, such
parties will consent and submit to personal jurisdiction in such court; and (c) agree to waive to the full extent permitted by law any objection that they may now or hereafter have to the venue of any such litigation, proceeding or action in
any such court or that any such litigation, proceeding or action was brought in an inconvenient forum. 
 15. Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the Company, the Warrant Agent and their respective successors and assigns and the holders from time to time of Warrant Certificates or any of them. Except as hereinafter stated, nothing in
this Agreement is intended or shall be construed to confer upon any other person any right, remedy or claim or to impose upon any other person any duty, liability or obligation. 
 16. Termination. This Agreement shall terminate at the Expiration Time or such earlier date upon which all Warrants have been exercised or
surrendered, except that the Warrant Agent shall account to the Corporation for cash held by it and the provisions of Section 10 hereof shall survive such termination. 

 17. Integration. As of the date hereof, this Agreement contains the entire and only agreement,
understanding, representation, condition, warranty or covenant between the parties hereto with respect to the matters herein, supersedes any and all other agreements between the parties hereto relating to such matters, and may be modified or amended
only by a written agreement signed by both parties hereto. 
 18. Counterparts. This Agreement may be executed in several
counterparts, which taken together shall constitute a single document. 
 [remainder of page intentionally left blank] 

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

			
	 ACTION PRODUCTS INTERNATIONAL, INC.

		
	By:	 	 /s/ Ronald S. Kaplan

		 	 Ronald S. Kaplan
 Chief Executive Officer

  

			
	 REGISTRAR AND TRANSFER COMPANY

		
	By:	 	 /s/ William P. Tatler

		 	 William P. Tatler
 Vice President

 Exhibit A 
 No.
                                       
                                        
                     VOID AFTER 5:00 P M on January 31, 2007 
                      WARRANTS

 REDEEMABLE WARRANT CERTIFICATE TO 
 PURCHASE COMMON SHARES 
 ACTION PRODUCTS INTERNATIONAL, INC. 
 NO.
                                       
                                        
                     CUSIP: 
 THIS
CERTIFIES THAT, FOR VALUE RECEIVED
                                     or registered assigns
(the “Registered Holder”) is the owner of the number of Warrants (the “Warrants”) specified above. Each Warrant initially entitles the Registered Holder to purchase, subject to the terms and conditions set forth in this
Certificate and the Warrant Agreement (as hereinafter defined), one fully paid and non-assessable Common Share, $0.001 par value, of Action Products International, Inc., a Florida corporation (the “Company”), at any time from
[DATE] and prior to the Expiration Date (as hereinafter defined) upon the presentation and surrender of this Warrant Certificate with the Exercise Form on the reverse hereof duly executed, at the corporate office of Registrar and
Transfer Company, as Warrant Agent, or its successor (the “Warrant Agent”), or the Company, accompanied by the Exercise Price (as defined in the Warrant Agreement), in lawful-money of the United States of America in cash or by check made
payable to the Warrant Agent for the account of the Company. 
 This Warrant Certificate and each Warrant represented hereby are issued
pursuant to and are subject in all respects to the terms and conditions set forth in the Warrant Agreement (the “Warrant Agreement”), dated after June
                , 2006, by and between the Company and the Warrant Agent. 
 In the event of certain contingencies provided for in the Warrant Agreement, the Exercise Price and the number of Common Shares subject to purchase upon the exercise of each Warrant represented hereby are subject to
modification or adjustment. 
 Each Warrant represented hereby is exercisable at the option of the Registered Holder, but no fractional
interests will be issued. In the case of the exercise of less than all the warrants represented hereby, the Company shall cancel this Warrant Certificate upon the surrender hereof and shall execute and deliver a new Warrant Certificate or Warrant
Certificates of like tenor, which the Warrant Agent shall countersign, for the balance of such Warrants. 
 The term “Expiration
Date” shall mean 5:00 P.M. (New York time) on January 31, 2007 . If such date shall in the State of New York be a holiday or a day on which the banks are authorized to close, then the Expiration Date shall mean 5:00 P.M. (New York time)
the next following day which in the State of New York is not a holiday or a day on which banks are authorized to close. 
 Prior to the
exercise of any Warrant represented hereby, the Registered Holder shall not be entitled to any rights of a shareholder of the Company, including, without limitation, the right to vote or to receive dividends or other 

 
distributions, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided in the Warrant Agreement. 
 Subject to the provisions of the Warrant Agreement, this Warrant may be redeemed at the option of the Company, at a redemption price of $0.001 per
Warrant. Notice of redemption shall be given not later than the twenty-first (21st) day before the date fixed
for redemption, all as provided in the Warrant Agreement. On and after the date fixed for redemption, the Registered Holder shall have no rights with respect to this Warrant except to receive the $0.001 per Warrant upon surrender of this
Certificate. 
 Prior to due presentment for registration or transfer hereof, the Company and the Warrant Agent may deem and treat the
Registered Holder as the absolute owner hereof and of each Warrant represented hereby (notwithstanding any notations of ownership or writing hereon made by anyone other than a duly authorized officer of the Company or the Warrant Agent) for all
purposes and shall not be affected by any notice to the contrary, except as provided in the Warrant Agreement. 
 This Warrant Certificate
shall be governed by and construed in accordance with the laws of the State of Florida without giving effect to conflicts of laws. 
 This
Warrant Certificate is not, valid unless countersigned by the Warrant Agent. 
 IN WITNESS WHEREOF, the Company has caused this Warrant
Certificate to be duly executed, manually or in facsimile by two of its officers thereunto duly authorized. 
 Dated: 

			
	
	 ACTION PRODUCTS INTERNATIONAL, INC.

		
	By:	 	  
	 Ronald S. Kaplan
 Chief Executive Officer

  

			
		
	By:	 	  
	 John R. Oliver
 Secretary

  

			
	 COUNTERSIGNED:

	
	 REGISTRAR AND TRANSFER COMPANY
 as Warrant Agent

		
	By:	 	  
		 	Authorized Officer

 EXERCISE FORM 
 To Be Executed by the Registered Holder in Order to Exercise Warrant 
 The undersigned Registered Holder hereby irrevocably elects to exercise
                 Warrants represented by this Warrant Certificate, and to purchase the securities issuable upon the exercise of such Warrants, and requests that
certificates for such securities shall be issued in name of 
 PLEASE INSERT SOCIAL SECURITY 
 OR OTHER IDENTIFYING NUMBER 
 ________________________________________ 
 ________________________________________ 
 ________________________________________ 
           (please print or type name and address) 
 and be
delivered to: 
 ________________________________________ 
 ________________________________________ 
 ________________________________________ 
           (please print or type name and address) 
 and if such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be
registered in the name of, and delivered to, the Registered Holder at the address stated below. 
 IMPORTANT: PLEASE CHECK
WHICH IS APPLICABLE: 
  

	 ̈	The exercise of this Warrant was solicited by: 

                                       
                                   (name of individual broker) 

                                      
                                   (name of firm) 
  

	 ̈	The exercise of this Warrant was not solicited. 

  

									
	 Dated:
                                        ,
200    
	 	 X
	 	 ______________________________________

		 	       Signature

  

									
	 _____________________________
	 		 	
	Name	 		 	
		 		 	 X
	 	 ______________________________________

		 		 	       Signature Guaranteed

 ASSIGNMENT FORM 
 To Be Executed by the Registered Holder in Order to Assign Warrants 
 FOR VALUE RECEIVED,
                                        
                , hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY 
 OR OTHER IDENTIFYING NUMBER 
 ________________________________________ 
 ________________________________________ 
 ________________________________________ 
 (please print or type name and address) 
                                       
                                        
               of the Warrants represented by this Warrant Certificate, and hereby irrevocably constitutes and appoints
                                     Attorney to transfer this
Warrant Certificate on the books of the Company, with full power of substitution in the premises. 
  
  

									
	 Dated:
                                        ,
200    
	 	 X
	 	 ______________________________________

		 	       Signature

  

									
		 	 X
	 	 ______________________________________

		 	       Signature Guaranteed

  

 THE SIGNATURE TO THE ASSIGNMENT OR THE EXERCISE FORM MUST CORRESPOND TO THE NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER AND
MUST BE MEDALLION GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE, MIDWEST STOCK EXCHANGE OR BOSTON STOCK EXCHANGE, WHO IS A MEMBER OF THE
MEDALLION PROGRAM.EXHIBIT 4.1

 Exhibit 4.1 
 EXECUTION COPY 
  

 BA CREDIT CARD TRUST 
 as Issuer 
 CLASS C(2006-4) TERMS DOCUMENT 
 dated as of June 15, 2006 
 to 
 AMENDED AND RESTATED BASERIES INDENTURE
SUPPLEMENT 
 dated as of June 10, 2006 
 to 
 AMENDED AND RESTATED INDENTURE 
 dated as of June 10, 2006 
 THE BANK OF NEW YORK 
 as Indenture Trustee 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 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 C(2006-4) NOTES

			
	Section 2.01.	  	Creation and Designation	  	7
			
	Section 2.02.	  	Interest Payment	  	7
			
	Section 2.03.	  	Calculation Agent; Determination of LIBOR	  	7
			
	Section 2.04.	  	Payments of Interest and Principal	  	8
			
	Section 2.05.	  	Targeted Deposit to the Class C Reserve Account	  	8
			
	Section 2.06.	  	Form of Delivery of Class C(2006-4) Notes; Depository; Denominations	  	8
			
	Section 2.07.	  	Delivery and Payment for the Class C(2006-4) 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

  

 -i- 

 THIS CLASS C(2006-4) 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 ( the “Indenture Trustee”), is made and entered into as of June 15, 2006. 
 Pursuant to this
Terms Document, the Issuer and the Indenture Trustee shall create a new tranche of Class C Notes and shall specify the principal terms thereof. 
 ARTICLE I 
 Definitions and Other Provisions of General Application 
 Section 1.01. Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise
requires: 
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural
as well as the singular; 
 (2) all other terms used herein which are defined in the Amended and Restated BAseries Indenture
Supplement, dated as of June 10, 2006 (the “Indenture Supplement”), or the Amended and Restated Indenture, dated as of June 10, 2006 (the “Indenture”), each between the Issuer (formerly known as MBNA
Credit Card Master Note Trust) and the Indenture Trustee, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) 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;

 (4) 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; 
 (5) 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; 
 (6) 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; 
 (7)
each capitalized term defined herein shall relate only to the Class C(2006-4) Notes and no other tranche of Notes issued by the Issuer; and 

 (8) “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 C(2006-4) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the
Monthly Period following the first Transfer Date following and including the May 2007 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 November 2007 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 January 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
C(2006-4) Notes and (ii) the date on which the Class C(2006-4) 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 2.03(a). 
 “Class C Reserve Account Percentage” means, (i) zero, if the Quarterly Excess Available Funds Percentage on such Transfer Date is
greater than or equal to 4.50%, (ii) 1.25%, if the Quarterly Excess Available Funds Percentage on such Transfer Date is less than 4.50% and greater than or equal to 4.00%, (iii) 2.00%, if the Quarterly Excess Available Funds Percentage on
such Transfer Date is less than 4.00% and greater than or equal to 3.50%, (iv) 2.75%, if the Quarterly Excess Available Funds Percentage is less than 3.50% and greater than or equal to 3.00%, (v) 3.50%, if the Quarterly Excess Available
Funds Percentage on such Transfer Date is less than 3.00% and greater than or equal to 2.50%, (vi) 4.50%, if the Quarterly Excess Available Funds Percentage is less than 2.50% and greater than or equal to 2.00%, and (vii) 6.00%, if the
Quarterly Excess Available Funds Percentage on such Transfer Date is less than 2.00%. 
  

 2 

 “Class C(2006-4) Note” means any Note, substantially in the form set forth in Exhibit
A-3 to the Indenture Supplement, designated therein as a Class C(2006-4) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class C(2006-4) Noteholder” means a Person in whose name a Class C(2006-4) Note is registered in the Note Register. 
 “Class C(2006-4) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class C(2006-4) 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. 
 “Controlled Accumulation Amount” means $31,250,000.00; 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
June 15, 2009. 
 “Initial Dollar Principal Amount” means $375,000,000. 
 “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 17, 2006. 
 “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 June 15, 2006. 
 “Legal Maturity Date” means November 15, 2011. 
 “LIBOR” means, for
any Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the Calculation Agent on the LIBOR Determination Date for each Interest Period in accordance with the provisions of
Section 2.03. 
 “LIBOR Determination Date” means (i) June 13, 2006 for the period from and including
the Issuance Date to but excluding July 17, 2006 and (ii) 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. 
  

 3 

 “Note Interest Rate” means a per annum rate equal to 0.23% 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 July 2006 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 C(2006-4) 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 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. 
  

 4 

 “Stated Principal Amount” means $375,000,000. 
 “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. 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. 
  

 5 

 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] 
  

 6 

 ARTICLE II 
 The Class C(2006-4) Notes 
 Section 2.01. Creation and Designation. There is hereby
created a tranche of BAseries Class C Notes to be issued pursuant to the Indenture and the BAseries Indenture Supplement to be known as the “BAseries Class C(2006-4) Notes.” 
 Section 2.02. Interest Payment. 
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class C(2006-4) 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 C(2006-4) Notes
determined as of the Record Date preceding the related Transfer Date. Interest on the Class C(2006-4) 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 C(2006-4)
Interest Funding sub-Account the portion of BAseries Available Funds allocable to the Class C(2006-4) Notes. 
 Section 2.03.
Calculation Agent; Determination of LIBOR. 
 (a) The Issuer hereby agrees that for so long as any Class C(2006-4) 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 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. 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. 
  

 7 

 (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 and the Beneficiary, by facsimile transmission, notification of LIBOR for the following Interest Period. 
 Section 2.04.
Payments of Interest and Principal. 
 (a) Any installment of interest or principal, if any, payable on any Class C(2006-4) 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 C(2006-4) 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. 
 (b) The right of the Class C(2006-4) Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class
C(2006-4) Termination Date. 
 Section 2.05. Targeted Deposit to the Class C Reserve Account. The deposit targeted to be made to
the Class C Reserve sub-Account for the Class C(2006-4) Notes for any Transfer Date will be an amount equal to (i) to the product of (A) Class C Reserve Account Percentage for the related Monthly Period times (B) the sum of the
Initial Outstanding Dollar Principal Amounts of each tranche of Outstanding BAseries Notes as of the last day of the preceding Monthly Period times (C) a fraction, the numerator of which is the Nominal Liquidation Amount of the Class
C(2006-4) Notes as of the close of business on the last day of the preceding Monthly Period and the denominator of which is the Nominal Liquidation Amount of all Class C Notes in the BAseries as of the close of business on the last day of the
preceding Monthly Period, minus (ii) any amount previously on deposit in the Class C(2006-4) Reserve sub-Account prior to such targeted deposit; provided however, that if an Early Redemption Event or Event of Default occurs
with respect to the Class C(2006-4) Notes, the deposit targeted will be the Adjusted Outstanding Dollar Principal Amount of the Class C(2006-4) notes minus the amount then on deposit in such sub-Account. 
 Section 2.06. Form of Delivery of Class C(2006-4) Notes; Depository; Denominations. 
 (a) The Class C(2006-4) Notes shall be delivered in the form of a global Registered Note as provided in Sections 202 and 301(i) of the
Indenture, respectively. 
  

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 (b) The Depository for the Class C(2006-4) Notes shall be The Depository Trust Company, and the Class
C(2006-4) Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class C(2006-4) 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 C(2006-4) Notes. The Issuer shall execute and deliver the Class C(2006-4) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class C(2006-4) 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] 
  

 9 

 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.

  

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 (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. 
 [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 FIA CARD
SERVICES,
 NATIONAL ASSOCIATION,
 as Beneficiary and not in its
individual capacity

		
	By:	 	 /s/ Scott W. McCarthy

		 	Scott W. McCarthy
		 	Senior 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:	 	Assistant Vice President

 [Signature Page to the Class C(2006-4) Terms Document]

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