Document:

Exhibit 4.1

 Exhibit 4.1 
 EXECUTION COPY 
  

 CAPITAL ONE MULTI-ASSET EXECUTION TRUST 
 as Issuer 
 and 
 THE BANK OF NEW YORK 

as Indenture Trustee 
 CLASS A(2006-4)
TERMS DOCUMENT 
 dated as of March 8, 2006 
 to 
 CARD SERIES INDENTURE SUPPLEMENT 
 dated as of October 9, 2002 
 to 
 ASSET POOL 1 SUPPLEMENT 
 dated as of
October 9, 2002 
 to 
 INDENTURE 
 dated as of October 9, 2002, as amended and restated as of January 13, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		  	ARTICLE I	  	
		  	Definitions and Other Provisions of General Application	  	
			
	 Section 1.01.
	  	 Definitions
	  	1
			
	 Section 1.02.
	  	 Governing Law
	  	7
			
	 Section 1.03.
	  	 Counterparts
	  	7
			
	 Section 1.04.
	  	 Ratification of Indenture, Asset Pool 1 Supplement and Indenture Supplement
	  	7
			
		  	ARTICLE II	  	
		  	The Class A(2006-4) Notes	  	
			
	 Section 2.01.
	  	 Creation and Designation
	  	8
			
	 Section 2.02.
	  	 Adjustments to Required Subordinated Percentages
	  	8
			
	 Section 2.03.
	  	 Interest Payment
	  	8
			
	 Section 2.04.
	  	 Calculation Agent; Determination of LIBOR.
	  	9
			
	 Section 2.05.
	  	 Payments of Interest and Principal
	  	9
			
	 Section 2.06.
	  	 Form of Delivery of Class A(2006-4) Notes; Depository; Denominations
	  	10
			
	 Section 2.07.
	  	 Delivery and Payment for the Class A(2006-4) Notes
	  	10
			
	 Section 2.08.
	  	 Targeted Deposits to the Accumulation Reserve Account
	  	10
			
	 Section 2.09.
	  	 Capital One Derivative Agreement
	  	10

  

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 THIS CLASS A(2006-4) TERMS DOCUMENT (this “Terms Document”), by and between CAPITAL ONE
MULTI-ASSET EXECUTION TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), having its principal office at E. A. Delle Donne Corporate Center, Montgomery Building, 1011 Centre Road,
Wilmington, DE 19805 and THE BANK OF NEW YORK, a New York banking corporation, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of March 8, 2006. 
 Pursuant to this Terms Document, the Issuer 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: 
  

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

  

	 	(2)	all other terms used herein which are defined in the Indenture Supplement, the Asset Pool 1 Supplement or the Indenture, 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; 

  

	 	(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, the Asset Pool 1
Supplement, the Indenture or the Transfer and Administration Agreement, the terms and provisions of this Terms Document shall be controlling; 

  

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

  

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

 “Accumulation Period Amount” means $83,333,333.34; 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 Accumulation Period Amount shall be the amount specified in the definition of “Accumulation Period Amount” in the Indenture
Supplement. 
 “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
Distribution Date for which a budgeted deposit is targeted to be made into the Principal Funding sub-Account of the Class A(2006-4) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the Monthly Period following the
first Distribution Date following and including the January 2009 Distribution Date for which the Quarterly Excess Spread Percentage is less than 2%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier
than 12 months prior to the first Distribution Date for which a budgeted deposit is targeted to be made into the Principal Funding sub-Account for the Class A(2006-4) Notes pursuant to Section 3.10(b) of the Indenture Supplement,
(iii) the Monthly Period following the first Distribution Date following and including the July 2009 Distribution Date for which the Quarterly Excess Spread Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period
shall not be required to commence earlier than 6 months prior to the first Distribution Date for which a budgeted deposit is targeted to be made into the Principal Funding sub-Account for the Class A(2006-4) Notes pursuant to
Section 3.10(b) of the Indenture Supplement, and (iv) the Monthly Period following the first Distribution Date following and including the September 2009 Distribution Date for which the Quarterly Excess Spread Percentage is less
than 4%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 4 months prior to the first Distribution Date for which a budgeted deposit is targeted to be made into the Principal Funding
sub-Account for the Class A(2006-4) Notes pursuant to Section 3.10(b) of the Indenture Supplement 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(2006-4) Notes and (ii) the date on which the Class A(2006-4) Notes are paid in full. 
 “Asset Pool 1 Supplement” means the Asset Pool 1 Supplement dated as of October 9, 2002, by and between the Issuer and the Indenture Trustee, as amended and supplemented from time to time. 
 “Base Rate” means, with respect to any Monthly Period, the sum of (a) the Card Series Servicing Fee Percentage and (b) the
weighted average (based on the Outstanding Dollar Principal Amount of the related Card Series Notes) of the following: 
 (i)
in the case of a Tranche of Card Series Dollar Interest-bearing Notes with no Derivative Agreement for interest, the rate of interest applicable to such Tranche for the period from and including the Monthly Interest Accrual Date for such Tranche of
Card Series Dollar Interest-bearing Notes in such Monthly Period to but excluding the Monthly Interest Accrual Date for such Tranche of Card Series Dollar Interest-bearing Notes in the following Monthly Period; 
  

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 (ii) in the case of a Tranche of Card Series Discount Notes, the rate of accretion
(converted to an accrual rate) of such Tranche for the period from and including the Monthly Interest Accrual Date for such Tranche of Card Series Discount Notes in such Monthly Period to but excluding the Monthly Interest Accrual Date for such
Tranche of Card Series Discount Notes in the following Monthly Period; 
 (iii) in the case of a Tranche of Card Series Notes
with a Performing Derivative Agreement for interest, the rate at which payments by the Issuer to the applicable Derivative Counterparty accrue (prior to the netting of such payments, if applicable) for the period from and including the Monthly
Interest Accrual Date for such Tranche of Card Series Notes in such Monthly Period to but excluding the Monthly Interest Accrual Date for such Tranche of Card Series Notes in the following Monthly Period; provided, however, that in the case of a
Tranche of Card Series Notes with a Performing Derivative Agreement for interest in which the rating on such Tranche of Card Series Notes is not dependant upon the rating of the applicable Derivative Counterparty, the amount determined pursuant to
this clause (iii) will be the higher of (1) the rate determined pursuant to this clause (iii) above and (2) the rate of interest applicable to such Tranche for the period from and including the Monthly Interest Accrual Date for
such Tranche of Card Series Notes in such Monthly Period to but excluding the Monthly Interest Accrual Date for such Tranche of Card Series Notes in the following Monthly Period; and 
 (iv) in the case of a tranche of Card Series Notes with a non-Performing Derivative Agreement for interest, the rate specified for that
date in the related Terms Document. 
 “Calculation Agent” is defined in Section 2.04(a). 
 “Class A(2006-4) Adverse Event” means the occurrence of any of the following: (a) an Early Redemption Event with respect to the
Class A(2006-4) Notes or (b) an Event of Default and acceleration of the Class A(2006-4) Notes. 
 “Class A(2006-4)
Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2006-4) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class A(2006-4) Noteholder” means a Person in whose name a Class A(2006-4) Note is registered in the Note Register. 
 “Class A(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 A(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. 
 “Excess Spread Percentage” shall mean, with respect to any Distribution Date, the amount, if any, by which the Portfolio Yield for the
preceding Monthly Period exceeds the Base Rate for such Monthly Period. 
  

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 “Expected Principal Payment Date” means February 15, 2011. 
 “Initial Dollar Principal Amount” means $1,000,000,000. 
 “Indenture” means the Indenture dated as of October 9, 2002, as amended and restated as of January 13, 2006 by and between the Issuer and the Indenture Trustee, as amended and supplemented
from time to time. 
 “Indenture Supplement” means the Card Series Indenture Supplement dated as of October 9, 2002, by
and between the Issuer and the Indenture Trustee, as amended and supplemented from time to time. 
 “Interest Payment Date”
means the fifteenth day of each month commencing in April 2006, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 
 “Interest Period” means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and including the Issuance
Date) through the day preceding such Interest Payment Date. 
 “Issuance Date” means March 8, 2006. 
 “Legal Maturity Date” means December 16, 2013. 
 “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 such
Interest Period in accordance with the provisions of Section 2.04. 
 “LIBOR Determination Date” means
March 6, 2006 for the period from and including the Issuance Date to but excluding April 17, 2006 and the second London Business Day prior to the commencement of the second and each subsequent Interest Period. 
 “London Business Day” means any Business Day on which dealings in deposits in United States Dollars are transacted in the London
interbank market. 
 “Maximum Subordination Amount of Class B Notes” means, for the Class A(2006-4) Notes for any date
of determination, an amount equal to the product of (a) Adjusted Outstanding Dollar Principal Amount of the Class A(2006-4) Notes on such date of determination and (b) the percentage equivalent of a fraction, the numerator of which is 10
and the denominator of which is 83.00. 
 “Note Interest Rate” means a rate per annum equal to 0.04% 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. 
  

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 “Portfolio Yield” means, with respect to any Monthly Period, the annualized percentage
equivalent of a fraction: 
 (a) the numerator of which is equal to the sum of: 
 (i) the aggregate amount of Finance Charge Amounts allocated to the Card Series with respect to such Monthly Period; plus

 (ii) the aggregate amount of Interest Funding sub-Account Earnings on all Tranches of Card Series Notes for such Monthly
Period; plus 
 (iii) any amounts to be treated as Card Series Finance Charge Amounts pursuant to Sections
3.20(d) and 3.27(a) of the Indenture Supplement; minus 
 (iv) the excess, if any, of (1) the sum of
the PFA Prefunding Earnings Shortfall plus the PFA Accumulation Earnings Shortfall over (2) the sum of the aggregate amount to be treated as Card Series Finance Charge Amounts 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 Card Series Notes for such Monthly Period;
minus 
 (v) the Card Series Default Amount for such Monthly Period; and 
 (b) the denominator of which is the numerator used in the calculation of the Card Series Floating Allocation Percentage for such Monthly Period.

 “Quarterly Excess Spread Percentage” means, with respect to the January 2009 Distribution Date and each Distribution Date
thereafter, the percentage equivalent of a fraction the numerator of which is the sum of the Excess Spread Percentages with respect to the immediately preceding three Monthly Periods and the denominator of which is three. 
 “Record Date” means, for any Distribution 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 A(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. 
 “Required Subordinated Amount of Class B Notes” means, for the Class A(2006-4) Notes for any date of determination, an amount equal to
the product of (a) the Required 

  

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Subordinated Percentage of Class B Notes for such Class A(2006-4) Notes on such date of determination and (b) the Adjusted Outstanding Dollar Principal
Amount of such Class A(2006-4) Notes on such date of determination; provided, however, that such an amount shall not exceed the Maximum Subordination Amount of Class B Notes for the Class A(2006-4) Notes; provided further,
however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2006-4) Adverse Event, the Required Subordinated Amount of Class B Notes for the Class A(2006-4) Notes will be the greater of
(x) the amount determined above for such date of determination and (y) the amount determined above for the date immediately prior to the date on which such Class A(2006-4) Adverse Event shall have occurred. 
 “Required Subordinated Amount of Class C Notes” means, for the Class A(2006-4) Notes for any date of determination, an amount equal to
the product of (a) the Required Subordinated Percentage of Class C Notes for such Class A(2006-4) Notes on such date of determination and (b) the Adjusted Outstanding Dollar Principal Amount of such Class A(2006-4) Notes on such date of
determination; provided, however, that for any date of determination, unless (i) the Prefunding Target Amount for any Tranche of Card Series Notes on such date of determination is greater than zero or (ii) any prefunded
amounts are on deposit in a Principal Funding sub-Account on such date of determination for any Tranche of Card Series Notes, the Required Subordinated Amount of Class C Notes for the Class A(2006-4) Notes will not be less than an amount equal to
(i) 3.0% of the Initial Dollar Principal Amount of the Class A(2006-4) Notes, minus (ii) the Required Subordinated Amount of Class D Notes for the Class A(2006-4) Notes; provided further, however, that for any date of
determination on or after the occurrence and during the continuation of a Class A(2006-4) Adverse Event, the Required Subordinated Amount of Class C Notes for the Class A(2006-4) Notes will be the greater of (x) the amount determined above for
such date of determination, (y) the amount determined above for the date immediately prior to the date on which such Class A(2006-4) Adverse Event shall have occurred and (z) unless (i) the Prefunding Target Amount for any Tranche of
Card Series Notes on such date of determination is greater than zero or (ii) any prefunded amounts are on deposit in a Principal Funding sub-Account on such date of determination for any Tranche of Card Series Notes, the amount determined
pursuant to the preceding proviso. 
 “Required Subordinated Amount of Class D Notes” means, for the Class A(2006-4) Notes
for any date of determination, an amount equal to the product of (a) the Required Subordinated Percentage of Class D Notes for such Class A(2006-4) Notes on such date of determination and (b) the Adjusted Outstanding Dollar Principal
Amount of such Class A(2006-4) Notes on such date of determination; provided, however, that for any date of determination, unless (i) the Prefunding Target Amount for any Tranche of Card Series Notes on such date of determination
is greater than zero or (ii) any prefunded amounts are on deposit in a Principal Funding sub-Account on such date of determination for any Tranche of Card Series Notes, the Required Subordinated Amount of Class D Notes for the Class A(2006-4)
Notes will not be less than an amount equal to 1.2049% of the Initial Dollar Principal Amount of the Class A(2006-4) Notes, provided further, however, that for any date of determination on or after the occurrence and during the
continuation of a Class A(2006-4) Adverse Event, the Required Subordinated Amount of Class D Notes for the Class A(2006-4) Notes will be the greatest of (x) the amount determined above for such date of determination, (y) the amount
determined above for the date immediately prior to the date on which such Class A(2006-4) Adverse Event shall have occurred and (z) unless (i) the Prefunding Target Amount for any Tranche of Card Series Notes on such date of determination

  

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is greater than zero or (ii) any prefunded amounts are on deposit in a Principal Funding sub-Account on such date of determination for any Tranche of
Card Series Notes, the amount determined pursuant to the preceding proviso. 
 “Required Subordinated Percentage of Class B
Notes” means, for the Class A(2006-4) Notes, 10.8434%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class C Notes” means, for the Class A(2006-4) Notes, 8.4338%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class D Notes” means, for the Class A(2006-4) Notes, 1.2049%, subject to adjustment in
accordance with Section 2.02. 
 “Stated Principal Amount” means $1,000,000,000. 
 “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). 
 Section 1.02. Governing Law. THIS TERMS
DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 1.03. Counterparts. This Terms Document may be
executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.04. Ratification of Indenture, Asset Pool 1 Supplement and Indenture Supplement. As supplemented by this Terms Document, each of the
Indenture, the Asset Pool 1 Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Asset Pool 1 Supplement 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(2006-4) Notes 
 Section 2.01. Creation and Designation. There is hereby created a tranche
of Card Series Class A Notes to be issued pursuant to the Indenture, the Asset Pool 1 Supplement and the Indenture Supplement to be known as the “Card Series Class A(2006-4) Notes.” 
 Section 2.02. Adjustments to Required Subordinated Percentages. 
 (a) On any date, the Issuer may change the Required Subordinated Percentage of Class B Notes or the Required Subordinated Percentage of Class C Notes, in each case for the Class A(2006-4) Notes, without the consent of
any Noteholders or any Note Rating Agencies, provided that, after giving effect to such change, (x) the sum of the Required Subordination Percentage of Class B Notes and the Required Subordinated Percentage of Class C Notes, in each case,
for the Class A(2006-4) Notes after giving effect to such change is equal to or greater than the sum of the Required Subordination Percentage of Class B Notes and the Required Subordinated Percentage of Class C Notes, in each case, for the Class
A(2006-4) Notes immediately prior to giving effect to such change and (y) the Required Subordinated Amount of Class B Notes for the Class A(2006-4) Notes does not exceed the Maximum Subordinated Amount of Class B Notes. 
 (b) On any date, the Issuer may change the Required Subordinated Percentage of Class B Notes, the Required Subordinated Percentage of Class C Notes or
the Required Subordinated Percentage of Class D Notes, in each case for the Class A(2006-4) Notes, such that after giving effect to all changes to such percentages on such date the sum of the Required Subordination Percentage of Class B Notes, the
Required Subordinated Percentage of Class C Notes and the Required Subordinated Amount of Class D Notes, in each case, for the Class A(2006-4) Notes after giving effect to such change is less than the sum of the Required Subordination Percentage of
Class B Notes, the Required Subordinated Percentage of Class C Notes and the Required Subordinated Amount of Class D Notes, in each case, for the Class A(2006-4) Notes immediately prior to giving effect to such change, without the consent of any
Noteholders, provided that the Issuer has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes of the Card Series that the change in such percentage will not result in a Ratings Effect with respect
to any Outstanding Class A(2006-4) Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion for each Master Trust 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(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 such related Interest Period times (ii) the Outstanding Dollar Principal Amount of the Class A(2006-4) Notes determined as of the
Record Date preceding the related Distribution Date. Any interest on the Class A(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. 
  

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 (b) Pursuant to Section 3.03 of the Indenture Supplement, on each Distribution Date, the
Indenture Trustee shall deposit into the Class A(2006-4) Interest Funding sub-Account the portion of Card Series Finance Charge Amounts allocable to the Class A(2006-4) Notes. 
 Section 2.04. Calculation Agent; Determination of LIBOR. 
 (a) The Issuer hereby agrees that for so long as any Class A(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 such 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 Issuer, the Beneficiary and the Servicer, by facsimile transmission or electronic transmission, notification of LIBOR for the following Interest Period. 
 Section 2.05. Payments of Interest and Principal. 
 (a) Any installment of interest or principal, if any, payable on any Class A(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 

  

 9 

 
to the Person in whose name such Class A(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 A(2006-4) Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class A(2006-4) Termination Date. 
 Section 2.06. Form of Delivery of Class A(2006-4) Notes; Depository; Denominations. 
 (a) The Class A(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. 
 (b) The Depository for the Class A(2006-4) Notes shall be The Depository Trust Company, and the Class A(2006-4)
Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class A(2006-4) Notes will be issued in
minimum denominations of $100,000 and integral multiples of $1,000 in excess of that amount. 
 Section 2.07. Delivery and Payment for the
Class A(2006-4) Notes. The Issuer shall execute and deliver the Class A(2006-4) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(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. 
 Section 2.09. Capital One Derivative Agreement. 

(a) On any Distribution Date, any amount owed by the Issuer pursuant to the ISDA Master Agreement, dated as of October 9, 2002, as supplemented
by the Schedule thereto, dated as of October 9, 2002, and the Confirmation thereto relating to the Class A(2006-4) Notes, dated as of March 8, 2006 (collectively, the “Capital One Derivative Agreement”), each between
Capital One Bank and the Issuer, shall be paid to Capital One Bank from Card Series Finance Charge Amounts (available after giving effect to Sections 3.01(a) through (l) of the Indenture Supplement) for such Distribution Date in
an amount not to exceed the lesser of (i) the product of (x) the amount of Card Series Finance Charge Amounts available for application pursuant to Section 3.01(m) of the Indenture Supplement times (y) a fraction,
the numerator of which is the Nominal Liquidation Amount of the Class A(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 

  

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tranches of Card Series Notes as of the close of business on the last day of the preceding Monthly Period and (ii) the amount of such payment owed by
the Issuer to Capital One Bank on such Distribution Date. 
 (b) On any Distribution Date, any amount owed to the Issuer pursuant to the
Capital One Derivative Agreement shall be, when received by the Issuer, treated as Card Series Finance Charge Amounts for the purposes of Section 3.01(n) of the Indenture Supplement. 
 (c) The Capital One Derivative Agreement shall not be considered a “Derivative Agreement” (as such term is defined in the Indenture) for
the purposes of Indenture, the Asset Pool Supplement or the Indenture Supplement. 
 [END OF ARTICLE II] 
  

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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. 
  

					
	 CAPITAL ONE MULTI-ASSET EXECUTION TRUST,
 by DEUTSCHE BANK TRUST COMPANY
 DELAWARE, not in its individual capacity, but solely as
 Owner Trustee on behalf of the Trust

		
	 By:
	 	 /s/ Michele H. Y. Voon

		 	 Name:
	 	 Michele H. Y. Voon

		 	 Title:
	 	 Attorney-In-Fact

	
	 THE BANK OF NEW YORK, as Indenture Trustee
 and not in its individual capacity

		
	 By:
	 	 /s/ AnnMarie Cassano

		 	 Name:
	 	 AnnMarie Cassano

		 	 Title:
	 	 Assistant Treasurer

 [Signature Page to the Class A(2006-4) Terms Document]Employment Agreement (Knut Eriksen)

 Exhibit 10.42 
 Executive Employment Agreement 
 This Executive Employment Agreement (“Agreement”), including the attached
Exhibit A, is entered into between NATCO Group Inc., a Delaware corporation, having offices at 2950 N. Loop West, Suite 700, Houston, Texas 77092 (“Company”), and Knut Eriksen, an individual residing in Houston, Texas
(“Employee”), to be effective as of as of Employee’s first day of employment, which shall occur as promptly as practicable after the date of execution of this agreement but in any event by March 31, 2006 (the “Effective
Date”). In the event Employee does not commence his employment by March 31, 2006, this Agreement shall be null and void and of no effect. 
 Company is desirous of securing the services of Employee pursuant to the terms and conditions and for the consideration set forth in this Agreement, and Employee is desirous of entering employment with the Company or a subsidiary thereof
pursuant to such terms and conditions and for such consideration. Therefore, for and in consideration of the mutual promises, covenants and obligations contained herein, Company and Employee agree as follows: 
 Article 1: Employment and Duties 
 1.1. Company shall employ, or shall cause a subsidiary to employ, Employee, and Employee shall be employed by Company or such subsidiary, beginning as of the Effective Date of this Agreement and continuing until the date set forth on
Exhibit A (the “Term”), subject to the terms and conditions of this Agreement. This Agreement will expire by its own terms and the Employee will automatically become an employee at will and be included in all general employment and
benefit arrangements at the end of the Term unless the Company notifies Employee of its intention to extend the Term (such notice to include the length of the intended extension) at least 60 days prior to the expiration of the Term and Employee
accepts such extension within 10 days of receipt of such notice. 
 1.2. Employee shall be employed in the position(s) set forth on
Exhibit A. Employee agrees to serve in the assigned position(s) and to perform diligently and to the best of Employee’s abilities the duties and services appertaining to such position as determined by Company, as well as such additional
or different duties and services appropriate to such position which Employee from time to time may be reasonably directed to perform by Company. Employee shall at all times comply with and be subject to such policies and procedures as Company may
establish from time to time. 
 1.3. Employee shall, during the period of Employee’s employment by Company or a subsidiary, devote
Employee’s full business time, energy, and best efforts to the business and affairs of Company and its subsidiaries and affiliated entities. Employee may not engage, directly or indirectly, in any other business, investment, or activity that
interferes with Employee’s performance of Employee’s duties hereunder, is contrary to the interests of Company, or requires any significant portion of Employee’s business time. 
 1.4. Employee acknowledges and agrees that Employee owes a fiduciary duty of loyalty, fidelity and allegiance to act at all times in the best interests
of Company and its subsidiaries and to do no act which would injure Company’s business, its interests or its reputation. Employee agrees to comply with the policies and procedures as described and contained in Company’s Business Ethics
Policies and related policies, copies of which have been provided to Employee. 
 Article 2: Compensation and Benefits 
 2.1. Employee shall be paid base salary and bonus and shall accrue vacation as set forth on Exhibit A. Employee’s base salary shall be paid
in bi-weekly installments in accordance with Company’s or the employing subsidiary’s standard payroll practice, and (as with all other payments made to Employee by Company or such subsidiary) is subject to withholding of all federal,
state, city or other taxes as may be required by law. 
 2.2. While employed by Company or a subsidiary (both during the Term and
thereafter), Employee shall be allowed to participate, on the same basis generally as other employees of Company or such subsidiary, in all 

  

 1 

 
general employee benefit plans and programs, including improvements or modifications of the same, which on the effective date or thereafter are made
available by Company or such subsidiary to all or substantially all of its or their employees. Such benefits, plans and programs may include, without limitation, medical, dental care, life insurance, disability protection and qualified plans.
Nothing in this Agreement is to be construed or interpreted to provide greater rights, participation, coverage or benefits under such benefit plans or programs than provided to similarly situated employees pursuant to the terms and conditions of
such benefit plans and programs, except as may be approved by Company’s Governance, Nominating & Compensation Committee (or successor committee with responsibility for the compensation function) and/or Board of Directors. 

2.3. Employee shall receive the grants and awards of restricted stock and options as, and on the dates specified in Exhibit A, subject to his
continued employment on the date restrictions lapse or options vest and to the other terms and provisions of the Company’s standard forms of restricted stock or option agreements for senior executives of the Company. Employee shall be eligible
to participate in the Company’s long-term incentive plans and Company’s annual incentive plan currently maintained or hereafter maintained by Company or a subsidiary for its officers as a group. Any such grants, awards or participation
shall be subject to separate agreements containing the terms and provisions applicable to each such grant, award or participation as provided in the applicable incentive plan and by the committee administering such plan. 
 2.4. Company shall not by reason of this Article 2 be obligated to institute, maintain or refrain from changing, amending or discontinuing, any such
incentive compensation or employee benefit program or plan, so long as such actions or inactions are similarly applicable to covered employees generally. Moreover, unless specifically provided for in a written plan document adopted by the Board of
Directors of Company, none of the benefits or arrangements described in this Article 2 shall be secured or funded in any way, and each shall instead constitute an unfunded and unsecured promise to pay money in the future exclusively from the general
assets of Company. 
 2.5. Company may withhold from any compensation, benefits or amounts payable under this Agreement all federal, state,
city or other taxes as may be required by law. 
 Article 3: Termination Prior To Expiration of Term and Effects of Such Termination

 3.1. Notwithstanding any other provisions of this Agreement, Company shall have the right to terminate Employee’s employment
under this Agreement at any time prior to the expiration of the Term for any of the following reasons: 
 (a) For
“cause” upon the determination by the Company’s Chief Executive Officer that “cause” exists for the termination of the employment relationship. As used in this Section 3.1(a), the term “cause” shall mean
(i) Employee’s gross negligence or willful misconduct in the performance of the duties and services required of Employee pursuant to this Agreement; (ii) Employee’s final conviction of a felony or of a misdemeanor involving moral
turpitude; (iii) Employee’s involvement in a conflict of interest as referenced in Sections 1.3 or 1.4 with respect to which Company makes a good faith determination to terminate the employment of Employee; or (iv) Employee’s
material breach of any material provision of this Agreement which remains uncorrected for 30 days following written notice to Employee by Company of such breach. It is expressly acknowledged and agreed that the decision as to whether
“cause” exists for termination of the employment relationship by Company is delegated to the Chief Executive Officer for determination; 
 (b) For any other reason whatsoever, with or without cause, in the sole discretion of the Company’s Chief Executive Officer; 
 (c) Upon Employee’s death; or 
 (d) To the extent allowed by law, upon Employee’s becoming incapacitated by accident, sickness or other circumstance which renders him or her mentally or physically incapable of performing the duties and services
required of Employee, as determined in good faith by Company. 
  

 2 

 The termination of Employee’s employment by Company prior to the expiration of the Term shall constitute a
“Termination for Cause” if made pursuant to Section 3.1(a); the effect of such termination is specified in Section 3.4. The termination of Employee’s employment by Company prior to the expiration of the Term shall constitute
an “Involuntary Termination” if made pursuant to Section 3.1(b); the effect of such termination is specified in Section 3.6(a). The effect of the employment relationship being terminated pursuant to Section 3.1(c) or
(d) as a result of Employee’s death or disability is specified in Section 3.6(b). 
 3.2. Notwithstanding any other provisions
of this Agreement except Section 8.5, Employee shall have the right to terminate the employment relationship under this Agreement at any time prior to the expiration of the Term of employment for any of the following reasons: 
 (a) A material breach by Company of any material provision of this Agreement or the occurrence of an Involuntary Termination as defined in
Section 3.5 which remains uncorrected for 30 days following written notice of such breach by Employee to Company; or 
 (b) For any other reason whatsoever, in the sole discretion of Employee. 
 The termination of Employee’s employment by Employee prior to the
expiration of the Term shall constitute an “Involuntary Termination” if made pursuant to Section 3.2(a); the effect of such termination is specified in Section 3.6(a). The termination of Employee’s employment by Employee
prior to the expiration of the Term shall constitute a “Voluntary Termination” if made pursuant to Section 3.2(b); the effect of such termination is specified in Section 3.3. 
 3.3. Upon a “Voluntary Termination” of the employment relationship by Employee prior to expiration of the Term, all future compensation to
which Employee would have been entitled and all future benefits for which Employee would have been eligible shall cease and terminate as of the date of termination. Employee shall be entitled to pro rata salary and accrued benefits through the date
of such termination, but Employee shall not be entitled to any bonuses or incentive compensation not yet paid at the date of such termination. 
 3.4. If Employee’s employment hereunder shall be terminated by Company for Cause prior to expiration of the Term, all future compensation to which Employee would have been entitled and all future benefits for which Employee would have
been eligible shall cease and terminate as of the date of termination. Employee shall be entitled to pro rata salary and accrued benefits through the date of such termination, but Employee shall not be entitled to any bonuses or incentive
compensation not yet paid at the date of such termination. 
 3.5. As used in this Agreement, “Involuntary Termination” shall also
mean termination of Employee’s employment with Company if such termination results from termination by Employee within 90 days of and in connection with or based upon any of the following: 
 (a) A substantial and/or material reduction in the nature or scope of Employee’s duties and/or responsibilities as such duties are
constituted as of the effective date of this Agreement or later agreed to by Employee and Company, or if Employee is no longer an executive officer of the Company as defined as Section 16b in SEC regulations, which reduction remains in place
and uncorrected for 30 days following written notice of such breach to Company by Employee; 
 (b) A reduction in
Employee’s base pay (except as part of a general cutback for all employees or officers); 
 (c) A change in the location
for the primary performance of Employee’s services under this Agreement from the city in which Employee was serving at the time of notification to a city which is more than 100 miles away from such location, which change is not approved by
Employee. 
 3.6. Upon any Involuntary Termination of the employment relationship by either Company or Employee prior to expiration of the
Term, Employee shall be entitled to receive pro rata base salary and benefits (including payment for accrued, but unused, vacation) through the date of termination. Depending upon the type of Involuntary Termination, Employee or his estate may be
entitled to additional compensation and/or benefits, as described below. 
  

 3 

 (a) Upon an Involuntary Termination of the employment relationship by either Company or
Employee prior to expiration of the Term pursuant to Section 3.1(b), 3.2(a) or 3.5, Employee shall be entitled, after execution of a Waiver and Release Agreement in consideration of Employee’s continuing obligations hereunder after such
termination (including, without limitation, Employee’s non-competition obligations), to (i) the sum of one year’s annual base salary payable as follows: half of the base salary shall be paid within 30 days of the termination date; the
remaining half shall be paid at the end of the 6-month period following the termination date; (ii) the amount of the target bonus compensation earned by Employee under any applicable bonus plan then in effect in accordance with its terms
through the date of termination, based on Company performance through such date and prorated by multiplying such bonus compensation by the fraction obtained by dividing the number of days in the year through the date of termination by 365, payable
as follows: half of target bonus amount shall be paid within 30 days of the termination date; the remaining half shall be paid at the end of the 6-month period following the termination date; (iii) the continuation of the provision of health
insurance, dental insurance and life insurance benefits for a period of one year following the date of termination to Employee and Employee’s family at least equivalent to and to the same extent as those which would have been provided to them
in accordance with this Employment Agreement and the plans, programs, practices and policies of Company as in effect and applicable generally to other peer executives and their families at the date of termination, at the election of Employee;
provided, however, that if the Employee becomes re-employed with another employer and is eligible to receive medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described herein will be
secondary to those provided under such other plan during such applicable period of eligibility; and (iv) any bonus compensation that has been earned under the bonus plan, the payment of which has been deferred under the terms of the bonus plan,
will be paid to Employee in accordance with the terms of the bonus plan. 
 (b) Upon an Involuntary Termination of the
employment relationship by either Company or Employee prior to expiration of the Term pursuant to Section 3.1(c) or (d), Employee or his beneficiary’s shall be entitled to (i) cash in the amount of the target bonus compensation earned
by Employee under any applicable bonus plan then in effect in accordance with its terms through the date of termination, based on Company performance through such date and prorated by multiplying such bonus compensation by the fraction obtained by
dividing the number of days in the year through the date of termination by 365, payable no later than 90 days following the date of termination; and (ii) any bonus compensation that has been earned under the bonus plan, the payment of which has
been deferred under the terms of the bonus plan, will be paid to Employee in accordance with the terms of the bonus plan. 
 (c) Upon an Involuntary Termination of the employment relationship by either Company or Employee prior to expiration of the Term pursuant to Section 3.1(b), 3.2(a) or 3.5 within 12 months following a Change of Control, Employee shall
be entitled, after execution of a Waiver and Release Agreement in consideration of Employee’s continuing obligations hereunder after such termination (including, without limitation, Employee’s non-competition obligations), (i) to one
year’s annual base salary payable as follows: half of the base salary shall be paid within 30 days of the termination date; the remaining half shall be paid at the end of the 6-month period following the termination date; (ii) a lump sum
cash amount equal to the greater of (A) the target bonus compensation in effect at the time notice of termination is given or (B) the target bonus compensation in effect immediately preceding the Change of Control Date, payable as follows:
half of target bonus amount shall be paid within 30 days of the termination date; the remaining half shall be paid at the end of the 6-month period following the termination date; (iii) the continuation of the provision of health insurance,
dental insurance and life insurance benefits for a period of 12 months following the date of termination to Employee and Employee’s family at least equivalent to and to the same extent as those which would have been provided to them in
accordance with this Employment Agreement and the plans, programs, practices and policies of Company as in effect and applicable generally to other peer executives and their families at the date of termination, at the election of Employee, or the
cash-equivalent thereof; provided, however, that if the Employee becomes re-employed with another employer and is eligible to receive medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits
described herein will be secondary to those provided under such other plan during such applicable period of eligibility; and (iv)

  

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any bonus compensation that has been earned under the bonus plan, the payment of which has been deferred under the terms of the bonus plan, will be paid to
Employee in accordance with the terms of the bonus plan. In addition, notwithstanding the terms of the any related incentive plan or agreement, or any award agreement evidencing awards of stock options or restricted stock to purchase stock of
Company, in the event of a Change of Control while Employee is employed by Company, all outstanding stock options held by Employee shall fully vest as of the Change of Control Date and become immediately exercisable in accordance with their terms
and all restrictions on any restricted stock of Company held by Employee shall lapse as of the Change of Control Date, and any such stock options shall be exercisable for 90 days after the date of termination, unless the term of the stock options
expires before the end of such period, in which case the stock option shall be exercisable until the expiration of its term. 
 (d) Upon an Involuntary Termination of the employment relationship by either Company or Employee prior to expiration of the Term pursuant to Section 3.1(b), 3.2(a) or 3.5 within 6 months prior to a Change of Control, Employee shall be
entitled, after execution of a Waiver and Release Agreement in consideration of Employee’s continuing obligations hereunder after such termination (including, without limitation, Employee’s non-competition obligations), (i) to one
year’s annual base salary payable as follows: the full amount of such payment shall be paid at the end of the 6-month period following the termination date, with the amount of such payment to be offset by any payment Employee has previously
received under Section 3.6(a)(i); (ii) a lump sum cash amount equal to the greater of (A) the target bonus compensation in effect at the time notice of termination is given or (B) the target bonus compensation in effect
immediately preceding the Change of Control Date, payable as follows: the full amount of such payment shall be paid at the end of the 6-month period following the termination date, with the amount of such payment to be offset by any payment Employee
has previously received under Section 3.6(a)(ii); (iii) the continuation of the provision of health insurance, dental insurance and life insurance benefits for a period of 12 months following the date of termination to Employee and
Employee’s family at least equivalent to and to the same extent as those which would have been provided to them in accordance with this Employment Agreement and the plans, programs, practices and policies of Company as in effect and applicable
generally to other peer executives and their families at the date of termination, at the election of Employee, or the cash-equivalent thereof; provided, however, that if the Employee becomes re-employed with another employer and is eligible to
receive medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described herein will be secondary to those provided under such other plan during such applicable period of eligibility; and
(iv) any bonus compensation that has been earned under the bonus plan, the payment of which has been deferred under the terms of the bonus plan, will be paid to Employee in accordance with the terms of the bonus plan. In addition, Employee
shall receive a cash payment, (x) with respect to any stock option that is forfeited as of the date of his termination of employment, equal to the difference between the closing price of the Company stock as of the Change of Control Date and
such option’s exercise price (or, if the term of such option would have expired before the Change of Control Date, the difference between the closing price of the Company stock as of the date of such option’s expiration date and such
option’s exercise price) and (y) with respect to any restricted stock that is forfeited as of the date of his termination of employment, equal to the closing price of such stock as of the Change of Control Date, with such payment to be
made within 30 days of the Change of Control Date. 
 (e) “Change of Control” of Company shall occur if:
(1) Company merges or consolidates with any other entity (other than one of NATCO Group Inc.’s majority owned subsidiaries) and the shareholders of NATCO Group Inc. own less than 50% of the surviving entity; (2) Company sells all or
substantially all of its assets to any other person or entity (other than (i) a sale of equity interests in NATCO Group Inc. or (ii) a sale of assets to another majority owned subsidiary of NATCO Group Inc. and in connection therewith
Employee becomes employed by such subsidiary, NATCO Group Inc. or a partnership in which NATCO Group Inc. is the general partner); (3) Company is dissolved or liquidated; (4) any third person or entity together with its Affiliates
(including a “group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) shall become, directly or indirectly, the Beneficial Owner of greater than 50% of the voting stock of Company, based upon
voting power (except as the result of a distribution of the voting securities of the Company to the shareholders); or (5) during such time as Company has a class of Voting Securities registered under the Securities Exchange Act of 1934, the
individuals who constituted the members of the Company’s Board of Directors (“Incumbent Board”) upon 

  

 5 

 
the effective date of such registration cease for any reason to constitute at least a majority thereof, provided that any person becoming a director whose
election or nomination for election by Company stockholders was approved by a vote of at least two-thirds of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such
person is named as a nominee for director, without objection to such nomination) shall be, for purposes of this subclause (5), considered as though such person were a member of the Incumbent Board. 
 (f) “Change of Control Date” shall mean the day on which a Change of Control becomes effective. 
 (g) Employee shall not be under any duty or obligation to seek or accept other employment following Involuntary Termination and, except as
provided in Section 6.2, the amounts due Employee hereunder shall not be reduced or suspended if Employee accepts subsequent employment. Employee’s rights under this Section 3.6 are Employee’s sole and exclusive rights against
Company, or its Affiliates, and Company’s sole and exclusive liability to Employee under this Agreement, in contract, tort or otherwise, for any Involuntary Termination of the employment relationship. Employee, to the extent permitted by law,
covenants not to sue or lodge any claim, demand or cause of action against Company for any sums for Involuntary Termination other than those sums specified in this Section 3.6. 
 3.7. In all cases, the payments payable to Employee under Section 3.6 of this Agreement upon termination of the employment relationship shall be
offset against any amounts to which Employee may otherwise be entitled under any and all severance plans and policies of Company, or its Affiliates. 
 3.8. Termination (including expiration of the Term) of the employment relationship does not terminate those obligations imposed by this Agreement, which are continuing obligations, including, without limitation,
Employee’s obligations under Articles 5 and 6. Upon termination, Employee shall promptly return all property of the Company and its Affiliates to the Company, including books, records, computer files, etc. 
 3.9. Limitation of Benefits. 
 (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any benefit, payment or distribution by Company to or for the benefit of Employee (whether payable or distributable pursuant to the
terms of this Agreement or otherwise) (a “Payment”) would, if paid, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Payment shall be reduced to the extent necessary to avoid the
imposition of the Excise Tax. Company may select the Payments to be limited or reduced. 
 (b) All determinations required to
be made under this Section 3.9, including whether an Excise Tax would otherwise be imposed and the assumptions to be utilized in arriving at such determination, shall be made by Independent Tax Counsel which shall provide detailed supporting
calculations both to Company and Employee within 15 business days of the receipt of notice from Employee that a Payment is due to be made, or such earlier time as is requested by Company. For purposes of this paragraph, “Independent Tax
Counsel” will mean a lawyer, a certified public accountant with a nationally recognized accounting firm, or a compensation consultant with a nationally recognized actuarial and benefits consulting firm with expertise in the area of executive
compensation, who will be selected by Company and will be reasonably acceptable to Employee, and whose fees and disbursements will be paid by Company. Any determination by the Independent Tax Counsel shall be binding upon Company and Employee. If,
as a result of any uncertainty in the application of Section 4999 of the Code at the time the initial determination is made by the Independent Tax Counsel hereunder, Payments hereunder have been unnecessarily limited by this Section 3.9
(“Underpayment”), consistent with the calculations required to be made hereunder, then the Independent Tax Counsel shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be properly paid by Company
to or for the benefit of Employee. If, however, Payments hereunder have not been sufficiently limited by this Section 3.9, consistent with the calculations required to be made hereunder, to prevent the imposition of an Excise Tax upon Employee
(the “Overpayment”), then Employee shall notify Company in writing within 15 days of any claim by the Internal Revenue Service, that, if successful, would require the payment by Employee of 

  

 6 

 
any Excise Tax, and the Independent Tax Counsel shall determine the amount of Overpayment that has occurred and any such Overpayment shall be properly
refunded by Employee by or for the benefit of Company so as to properly prevent the imposition of the Excise Tax. 
 Article 4:
Continuation of Employment Beyond Term; Termination And Effects Of Termination 
 4.1. Should Employee remain employed by Company or a
subsidiary beyond the expiration of the Term of this Agreement, and this Agreement has not been extended by Company, the employer-employee relationship shall be employment at will, terminable at any time by any of Company, its employing subsidiary
or Employee for any reason whatsoever, with or without cause. 
 Article 5: Ownership and Protection Of Information; Copyrights

 5.1. All information, ideas, concepts, improvements, discoveries, and inventions, whether patentable or not, which are conceived,
made, developed or acquired by Employee, individually or in conjunction with others, during Employee’s employment by Company or a subsidiary (whether during business hours or otherwise and whether on Company’s premises or otherwise) which
relate to Company’s or such subsidiary’s business, products or services (including, without limitation, all such information relating to corporate opportunities, research, financial and sales data, pricing and trading terms, evaluations,
opinions, interpretations, acquisition prospects, the identity of customers or their requirements, the identity of key contacts within the customer’s organizations or within the organization of acquisition prospects, or marketing and
merchandising techniques, prospective names, and marks) shall be disclosed to Company and are and shall be the sole and exclusive property of Company or its subsidiary. Moreover, all drawings, memoranda, notes, records, files, correspondence,
drawings, manuals, models, specifications, computer programs, maps and all other writings or materials of any type embodying any of such information, ideas, concepts, improvements, discoveries and inventions are and shall be the sole and exclusive
property of Company or its subsidiary. 
 5.2. Employee acknowledges that the business of Company and its Affiliates is highly competitive
and that its strategies, methods, books, records and documents, its technical information concerning its products, equipment, services, and processes, procurement procedures and pricing techniques, the names of and other information (such as credit
and financial data) concerning its customers and business affiliates, all comprise confidential business information and trade secrets which are valuable, special and unique assets which Company or its Affiliates use in its or their business to
obtain a competitive advantage over its or their competitors. Employee further acknowledges that protection of such confidential business information and trade secrets against unauthorized disclosure and use is of critical importance to Company and
its Affiliates in maintaining its and their competitive position. Employee acknowledges that under this Agreement, Employee is being given access to confidential business information and trade secrets of Company and its Affiliates, and Employee
hereby agrees that Employee will not, at any time during or after his or her employment by Company, make any unauthorized disclosure of any confidential business information or trade secrets of Company or its Affiliates, or make any use thereof,
except in the carrying out of his or her employment responsibilities hereunder, or as may be required by law. NATCO Group Inc. and its Affiliates shall be third party beneficiaries of Employee’s obligations under this Section. As a result of
Employee’s employment by Company or a subsidiary, Employee may also from time to time have access to, or knowledge of, confidential business information or trade secrets of third parties, such as customers, suppliers, partners, joint-venturers
and the like, of Company and its Affiliates. Employee also agrees to preserve and protect the confidentiality of such third-party confidential information and trade secrets to the same extent, and on the same basis, as confidential business
information and trade secrets of the Company and its Affiliates. Employee acknowledges that money damages would not be a sufficient remedy for any breach of this Article 5 by Employee, and Company shall be entitled to enforce the provisions of this
Article 5 to specific performance and injunctive relief as remedies for such breach or any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of this Article 5, but shall be in addition to all remedies available
at law or in equity to Company, including the recovery of damages from Employee and his or her agents involved in such breach. 
  

 7 

 Article 6: Post-Employment Non-Competition Obligations 
 6.1. As part of the consideration for the compensation and benefits to be paid to Employee hereunder, and as an additional incentive for Company to enter
into this Agreement, and in particular Company’s agreement to the protections contained in Section 3.6, Company and Employee agree to the non-competition provisions of this Article 6 during the term of this Agreement. Employee agrees that
during the period of Employee’s non-competition obligations hereunder, Employee will not, directly or indirectly for Employee or for others, in any geographic area or market where Company or any of its Affiliated companies are conducting any
business as of the date of termination of the employment relationship or have during the previous 12 months conducted any business: 
 (a) engage in any business competitive with the business conducted by Company or its Affiliates; 
 (b) render advice
or services to, or otherwise assist, any other person, association or entity who is engaged, directly or indirectly, in any business competitive with the business conducted by Company or its Affiliates; or 
 (c) induce any employee of Company or any of its Affiliates to terminate his or her employment with Company or its Affiliates, or hire or
assist in the hiring of any such employee by person, association, or entity not Affiliated with Company or its Affiliates. These non-competition obligations shall continue for a period of one year after termination of this employment relationship.

 6.2. Employee understands that the foregoing restrictions may limit his or her ability to engage in certain businesses during the 12-month
period provided for above, but acknowledges that Employee will receive sufficiently high remuneration and other benefits under this Agreement to justify such restriction. Employee acknowledges that money damages would not be sufficient remedy for
any breach of this Article 6 by Employee, and Company shall be entitled to enforce the provisions of this Article 6 by terminating any payments then owed to Employee under this Agreement and/or to specific performance and injunctive relief as
remedies for such breach or any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of this Article 6, but shall be in addition to all remedies available at law or in equity to Company, including, without
limitation, the recovery of damages from Employee and his or her agents involved in such breach. 
 6.3. It is expressly understood and
agreed that Company and Employee consider the restrictions contained in this Article 6 to be reasonable and necessary to protect the proprietary information of Company. Nevertheless, if any of the aforesaid restrictions are found by a court having
jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise unenforceable, the parties intend for the restrictions therein set forth to be modified by such courts so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced. 
 Article 7: Indemnification 
 7.1. Contemporaneously with effectiveness of this Agreement, Company and Employee shall enter into an Indemnification Agreement substantially identical
in form and substance to Company’s standard form of indemnification agreement for senior executives of the Company. 
 Article 8:
Miscellaneous 
 8.1. The following terms shall have the meanings ascribed to them below for purposes of this Agreement: 
 (a) “Affiliates” or “Affiliated” means an entity who directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with Company. 
 (b) “Involuntary Termination Date” shall
mean Employee’s last date of employment by reason of an Involuntary Termination. 
  

 8 

 8.2. For purposes of this Agreement, notices and all other communications provided for herein shall be in
writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: If to Company, to: 
 NATCO Group Inc. 
 2950 N. Loop West

 Houston, Texas 77092 
 Attention: John U. Clarke, Chief Executive Officer 
 If to Employee, to: 
 Knut Eriksen 
 1721-1 Nantucket Drive

 Houston, Texas 77057 
 Either Company or
Employee may furnish a change of address to the other in writing in accordance herewith, except that notices of changes of address shall be effective only upon receipt. 
 8.3. This Agreement shall be governed in all respects by the laws of the State of Texas, excluding any conflict-of-law rule or principle that might refer the construction of the Agreement to the laws of another state
or country. 
 8.4. No failure by either party hereto at any time to give notice of any breach by the other party of, or to require
compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
 8.5. If a dispute arises out of or related to this Agreement, other than a dispute regarding Employee’s obligations under Article 5,
Section 5.2, or Article 6, Section 6.1, and if the dispute cannot be settled through direct discussions, then Company and Employee agree to first endeavor to settle the dispute in an amicable manner by mediation, before having recourse to
any other proceeding or forum. Thereafter, the matter shall be submitted to binding arbitration as follows: 
 Any dispute, claim, or
controversy arising out of or related in any way to this agreement, including but not limited to its enforceability, validity, or interpretation, or related in any way to employee’s employment with company or a subsidiary that is not first
resolved by agreement or mediation as provided above, shall be submitted to and resolved by binding arbitration with the American Arbitration Association (“AAA”) in Houston, Texas, in accordance with the AAA’s applicable rules to the
resolution of employment disputes. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction. It is specifically agreed that the arbitration provision shall be binding on employee’s heirs,
administrators, and personal representatives. The paragraph shall be governed by the federal arbitration act. Nothing contained in the agreement shall prevent company from seeking injunctive relief against employee for violation of any agreement
pertaining to non-competition, trade secrets or confidentiality. 
 Company shall pay all costs of such mediation and binding arbitration, exclusive of
Employee’s legal fees. 
 8.6. It is a desire and intent of the parties that the terms, provisions, covenants and remedies contained in
this Agreement shall be enforceable to the fullest extent permitted by law. If any such term, provision, covenant or remedy of this Agreement or the application thereof to any person, association, or entity or circumstances shall, to any extent, be
construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant or remedy shall be construed in a manner so as to permit its enforceability under the applicable law to the fullest extent permitted by law. In any
case, the remaining provisions of this Agreement or the application thereof to any person, association or entity or circumstances other than those to which they have been held invalid or unenforceable, shall remain in full force and effect.

 8.7. This Agreement shall be binding upon and inure to the benefit of Company and any other person, association or entity which may
hereafter acquire or succeed to all or substantially all of the business or assets of Company by any means whether direct or indirect, by purchase, merger, consolidation or otherwise. Company may assign this Agreement to any Affiliate or any other
entity of NATCO Group Inc. Employee’s rights and obligations 

  

 9 

 
under this Agreement hereof are personal and such rights, benefits, and obligations of Employee shall not be voluntarily or involuntarily assigned,
alienated, or transferred, whether by operation of law or otherwise, without the prior written consent of Company. 
 8.8. There exist other
agreements between Company and Employee relating to the employment relationship between them, for example, the agreement with respect to Company policies contained in Company’s Business Ethics Policies and agreements with respect to
indemnification and incentive matters. This Agreement replaces and merges previous agreements and discussions pertaining to the following subject matters covered herein: the nature of Employee’s employment relationship with Company and the term
and termination of such relationship. This Agreement constitutes the entire agreement of the parties with regard to such subject matters, and contains all of the covenants, promises, representations, warranties and agreements between the parties
with respect such subject matters. Each party to this Agreement acknowledges that no representation, inducement, promise or agreement, oral or written, has been made by either party with respect to such subject matters, which is not embodied herein,
and that no agreement, statement or promise relating to the employment of Employee by Company that is not contained in this Agreement shall be valid or binding. Any modification of this Agreement will be effective only if it is in writing and signed
by each party whose rights hereunder are affected thereby, provided that any such modification must be authorized or approved by the Board of Directors of Company. 
 IN WITNESS WHEREOF, Company and Employee have duly executed this Agreement in multiple originals to be effective on the date first stated above. 
  

			
	 NATCO GROUP INC.

		
	 By:
	 	/s/ Patrick M. McCarthy
		 	 Patrick M. McCarthy

		 	 President

  

			
	 This 6th day of January 2006

	
	 KNUT ERIKSEN

		
		 	/s/ Knut Eriksen
	
	 This 6th day of January 2006

  

 10 

 Exhibit A 
 To Executive Employment Agreement 
 Between Natco Group Inc. and Knut Eriksen 
  

			
	 Employee Name:
	 	Knut Eriksen
		
	 Term:
	 	Approximately three years (expires December 31, 2008)
		
	 Position:
	 	Senior Vice President – Engineered Systems of NATCO Group Inc. and of National Tank Company
		
	 Location:
	 	Houston, Texas
		
	 Annual Base Salary:
	 	Employee’s annual base salary shall not be less than $250,000.
		
	 Bonuses:
	 	Employee will be eligible to participate in the 2006 NATCO Group Inc. Annual Bonus Plan or any appropriate replacement bonus plan of Company or National Tank Company. All bonuses are
discretionary and shall be paid in accordance with the terms and provisions of the applicable plan. The annual targeted incentive is 50% of the annual base salary.
		
		 	In consideration of Employee’s acceptance of a permanent position with Company, Employee shall receive a one-time bonus payment of $125,000 within 15 days after his first day of
employment with the Company. Such bonus shall be forfeited to the Company if Employee voluntarily terminates his employment with the Company or a subsidiary prior to January 1, 2007 or if the Company terminates Employee for cause prior to
January 1, 2007.
		
	 Long Term Incentives:
	 	
		 	 •      15,000 shares of non-performance based restricted stock, with restrictions lapsing after 3 years
of service, subject to earlier lapse on Change of Control, death or disability, or involuntary termination without cause and to a retention requirement applicable to one-third of such shares during the term of employment unless waived by the
Governance, Nominating & Compensation Committee, grant date as of Employee’s first day of employment

		 	 •      Nonqualified Stock Options to acquire up to 25,000 shares vesting in one-third increments on the
first, second and third anniversaries of the date of grant, and subject to earlier vesting in the event of an involuntary termination without cause or on Change of Control, and to a retention requirement applicable to one-third of such shares during
the term of employment unless waived by the Governance, Nominating & Compensation Committee; grant date as of Employee’s first day of employment

		 	 •      Employee is eligible to participate in any long-term incentive plans as recommended and approved
by the Board of Directors of NATCO Group Inc. beginning in 2007. In the event of a Change of Control as defined in Article 3, Section 3.6(e), accelerated vesting shall occur on the Change of Control date for all unvested options under any award
grants that have not otherwise expired.

		
	 Vacation Benefits:
	 	Employee shall receive four weeks of vacation per year accrued on a bi-weekly basis.

  

 11

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