Document:

Executive Employment Agreement between Orange 21 Inc. and Jerry Kohlscheen

 EXHIBIT 10.1 
 ORANGE 21 INC. 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 This Executive Employment Agreement (the “Agreement”) is entered effective March 1, 2006, by and between Orange 21 Inc., a Delaware
corporation (“Employer”), and Jerry Kohlscheen (“Employee”), with respect to the following facts: 
 A.
Whereas, Employee will serve as Chief Operating Officer of Employer; 
 B. Whereas, Employer is a Delaware corporation engaged in the
business of the design, manufacture, sale, and distribution of sunglasses and related products bearing Employer’s trade name; and 
 C.
Whereas, Employer wishes to secure and Employee wishes to provide ongoing services on the terms and conditions set forth herein; 
 NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows: 
 1. Employment. Employer
hereby agrees to employ Employee as its Chief Operating Officer, and Employee hereby agrees to be employed by Employer in such capacity, subject to the terms and conditions in this Agreement. 
 2. At Will Employment. The parties acknowledge and agree that: (a) Employee’s employment is not for a specified term and may be
terminated by Employer or Employee at any time with or without cause; (b) this provision is intended to be the complete and final expression of the parties’ understanding regarding the terms and conditions under which Employee’s
employment may be terminated; (c) no representation contrary to this provision is valid; and (d) this provision may not be augmented, contradicted, or modified in any way, except by a writing signed by Employee and by Employer’s Chief
Executive Officer. Nothing in this Agreement is intended to or should be construed to contradict, modify or alter this at-will relationship. 
 3. Compensation. Employer shall pay Employee the following forms of compensation: 
 a. Base Salary.
Employee shall be paid a gross annual salary of $175,000 (“Base Salary”), payable on a pro-rated basis according to Employer’s payroll schedule and subject to applicable withholdings and other payroll deductions. The Base
Salary is subject to adjustment at the end of each calendar year by the Board of Directors of Employer (the “Board”) in its sole and absolute discretion. In the event Employee’s employment under this Agreement is terminated by
either party, for any reason, Employee will earn the Base Salary prorated to the Termination Date. 
 b. Commissions,
Profit Sharing and Bonuses. Each year, in the sole and absolute discretion of the Board, Employee may be entitled to participate in commission programs, profit sharing programs and bonuses programs. The terms and conditions of any such programs
will be established by the Board each year and Employee will be notified of such terms and conditions for such year. For 2006, the terms and conditions of such programs as the programs apply to Employee are outlined on Exhibit A,
attached hereto. Employee will be required to sign an agreement regarding such programs each year as a condition of receiving the benefit of such program. 
 c. Stock Options. From time to time, in the sole and absolute discretion of the Board, Employee may be granted an option to purchase shares of Common Stock of Employer on terms and conditions established by the
Board. 
  

					
		  	1	  	 Initials: Employer              Employee             

 4. Duties. 
 a. Position. Employee is employed as Chief Operating Officer and shall have the duties and responsibilities assigned by the Board
both upon the Effective Date and as may be reasonably assigned from time to time. Employee shall perform faithfully and diligently all duties assigned to Employee. 
 b. Best Efforts/Full-time. Employee will expend his/her best efforts on behalf of Employer, and will abide by all policies and
decisions made by Employer, as well as all applicable federal, state and local laws, regulations or ordinances. Employee will act in the best interest of Employer at all times. As an employee of Employer, Employee agrees: (a) to devote
Employee’s utmost knowledge and best skill to the performance of Employee’s duties under this Agreement; and (b) to devote Employee’s full business time to the rendition of such services, subject to absences for customary
vacations and for temporary illness. Notwithstanding the foregoing, Employee shall be permitted, to the extent such activities do not interfere with his/her performance of his/her duties and responsibilities and do not violate Section 11
of this Agreement, to serve on civic or charitable boards or committees and serve on the boards of other companies. 
 5. Personnel
Policies and Procedures. Employer shall have the authority to establish from time to time personnel policies and procedures to be followed by its employees. Employee agrees to comply with the policies and procedures of Employer. To the extent
any provisions in Employer’s personnel policies and procedures differ from the terms of this Agreement, the terms of this Agreement shall control. 
 6. Expenses. Employee is authorized to incur ordinary and necessary expenses in connection with the performance of his/her duties that are consistent with the policies of Employer as outlined in the
Employer’s Travel and Expense Guidelines, which may from time to time be modified or amended by the Chief Executive Officer. Employer will reimburse Employee for all such expenses upon the presentation by Employee of an itemized account of such
expenditures with supporting documentation. Employee agrees to submit expense reimbursement requests within thirty (30) days after he/she incurs such expenses. 
 7. Insurance/Benefits. Employee shall be entitled to participate in any insurance or other employee benefit program maintained by Employer for the benefit of similarly situated employees subject to the terms
and conditions of Employer’s benefit plan documents. Employer reserves the right to change or eliminate the benefits on a prospective basis, at any time, effective upon notice to Employee. 
 8. Vacation. Employee shall be entitled to two (2) weeks of vacation in each calendar year during the first year of employment; three
(3) weeks of vacation in each calendar year during the second through seventh year of employment; and four (4) weeks of vacation in each calendar year during each subsequent years. Vacation shall be earned on a monthly basis at a rate
calculated by dividing the number of days of vacation per year by twelve (12). For example – if the Employee is entitled to 15 days of vacation per year, the Employee will accrue 1.25 days of vacation for each month worked during the year.
Vacation not taken during the applicable fiscal year shall be carried over to the following fiscal year, for a maximum vacation accrual of six (6) weeks vacation time. Once the Employee reaches the accrual maximum, no additional vacation will
be earned until such a time as the Employee uses some vacation to bring the vacation accrual below the permitted maximum. Vacation shall be taken at times consistent with the reasonable needs of the business of Employer and at time that would not be
detrimental to the interests of Employer. Accrued but unused vacation days shall be paid in a cash lump sum promptly upon termination, as defined in Section 9 below. 
 9. Termination. Employee’s employment may be terminated upon occurrence of one of the following events: 
 a. By Death. This Agreement shall automatically terminate upon Employee’s death. Employer and Employee shall treat termination
under this Section 9(a) as termination by Employer 

  

					
		  	2	  	 Initials: Employer              Employee             

 
without cause under Section 9(e) below with payments made to Employee’s beneficiaries or estate, as appropriate. 
 b. By Mutual Agreement. This Agreement may be terminated at any time by mutual agreement of the parties hereto. Termination under
this Section 9(b) shall be treated as terminated without cause under Section 9(e) below. 
 c.
Disability. If Employee is prevented from fully performing the essential functions of Employee’s duties under this Agreement because of any illness or physical or mental disability, with or without reasonable accommodation, for a period
or periods of more than ninety (90) days in the aggregate during any calendar year or thirty (30) consecutive days in any twelve (12)-month period, Employer may terminate this Agreement in its sole discretion in accordance with state and
federal law. If Employee’s employment is terminated, Employer and Employee shall treat termination under this Section 9(c) as termination by Employer without cause under Section 9(e) hereof. 
 d. By Employer For Cause. This Agreement may be terminated by Employer at any time for Cause. For purposes of this Agreement,
“Cause” shall mean, as determined by the Chief Executive Officer in his/her sole discretion: 
  

	 	(i)	Commission of a felony or any lesser crime or offense involving fraud, embezzlement, dishonesty, breach of trust, or breach of fiduciary duty; or 

  

	 	(ii)	Conduct that has caused demonstrable and serious injury to Employer or any of its affiliates, monetary or otherwise; or 

  

	 	(iii)	The order of a regulatory agency that Employee be removed from any office, authority, or employment with Employer; or 

  

	 	(iv)	Willful misconduct, gross negligence, or recklessness on the part of Employee with respect to Employee’s obligations or otherwise related to the business of Employer; or

  

	 	(v)	Refusal to perform, or substantial disregard of duties properly assigned to Employee by Employer; or 

  

	 	(vi)	Breach of duty of loyalty to Employer or any of its affiliates or other act of fraud or dishonesty in the course of employment; or 

  

	 	(vii)	Breach by Employee of the terms of any agreement between or among Employee and Employer; or 

  

	 	(viii)	Violation of any policy of Employer. 

 For the avoidance
of doubt, (i) termination for death as described in Section 9(a), (ii) termination by mutual consent as described in Section 9(b) or (iii) termination for disability as described in Section 9(c)
shall not be considered termination for Cause. “Termination Date” shall mean the date Employee’s employment relationship with Employer terminates. This Agreement terminates effective the Termination Date. 
 e. By Employer Without Cause. Employer may, at any time, terminate Employee’s employment without Cause and for reasons not
specified above. 
 10. Effect of Termination. Upon termination of the employment relationship, all Employer obligations to Employee
will automatically terminate unless expressly stated in this Agreement as a 

  

					
		  	3	  	 Initials: Employer              Employee             

 
continuing obligation. Employee shall have no right to receive any payments or benefits hereunder except for the following, where applicable: 
 a. Employee’s Base Salary payable pursuant to Section 3(a) hereof prorated to the Termination Date, including any accrued
and unused vacation; 
 b. Any commissions, profit sharing or bonuses, in accordance with the terms established by the Board
from time to time, as provided by Section 3(b) above (provided that any such commissions, profit sharing or bonuses shall, where applicable and to the extent earned in accordance with the criteria established by the Board, be pro-rated
through the Termination Date). 
 c. Reimbursement of expenses incurred in accordance with Section 6 hereof prior
to the Termination Date to the extent not previously reimbursed by Employer; and 
 f. Provided Employee has not been
terminated for Cause, a severance payment in the amount established by the Board from time to time for such Employee (it be understood and acknowledged that the severance payment for the year 2006 shall be set forth on Exhibit A, attached
hereto, and that the Board shall not reduce such amounts for future years of service). Any severance payment is conditioned upon the fact that Employee complies with all surviving provisions of this Agreement as specified in Section 16
and executes a severance agreement and general release of all claims in a form provided by Employer. 
 11. No Conflict of Interest;
Nondisclosure of Proprietary Information. 
 a. No Conflict of Interest. During Employee’s employment by
Employer, Employee shall not, directly or indirectly, own, manage, operate, control, invest or acquire an interest in, or otherwise engage or participate (whether as a proprietor, partner, stockholder, director, officer, employee, joint venturer,
investor, or other participant) in any “Competitive Business” (as hereinafter defined) in the United States, without regard to: (i) whether the Competitive Business has its office or other business facilities within the United States;
(ii) whether any of the activities of Employee occur or are performed within the United States; or (iii) whether Employee resides in, or reports to an office within, the United States. For purposes of this Section 11,
“Competitive Business” shall mean the business of design, manufacture, sale, and distribution of sunglasses, motocross or snow goggles, and related products and accessories or any other business in which Employer becomes engaged
during the term of Employee’s employment with Employer. Notwithstanding the foregoing, Employee’s passive ownership of stock in a public company is not prohibited by this Agreement. 
 b. Nondisclosure. During the period that Employee is employed by Employer, and for an infinite period thereafter, Employee shall
not disclose, directly or indirectly, any confidential or proprietary information regarding any aspect of Employer, including any information relating to its finances, business, operations, products, procedures, business practices, marketing plans,
trademarks, customer lists, and pricing information, that is not public knowledge (“Proprietary Information”), to any third parties or to other employees of Employer except Employees who have a demonstrable need to know the
Proprietary Information for purpose of advancing the business of Employer. Employee also agrees that he/she shall not use any Proprietary Information in his/her possession for any purpose other than as required to fulfill his/her responsibilities as
a employee of Employer. Employee shall promptly notify Employer of any Proprietary Information prematurely or improperly disclosed. Proprietary Information includes not only information belonging to Employer that existed before the date of this
Agreement, but also information developed by Employee for Employer or its employees during the term of this Agreement and thereafter. 
 c. Return of Proprietary Information and Employer’s Property. Employee will not remove any Proprietary Information from the offices of Employer or the premises of any facility in which Employer is
performing services, or allow such removal, unless permitted in writing by the Chief Executive Officer as necessary for the performance of Employee’s obligations under this Agreement. Immediately upon Employer’s request, or Employee’s
Termination Date as defined in Section 9, Employee shall return 

  

					
		  	4	  	 Initials: Employer              Employee             

 
any documents or other written materials that contain Proprietary Information, and any property that belongs to Employer, including copies of any computer
programs or data owned by Employer. 
 d. Remedies. The parties to this Agreement hereby agree that: (i) if
Employee breaches this Section 11, the damage to Employer will be substantial, although difficult to ascertain, and money damages will not afford Employer an adequate remedy, and (ii) if Employee is in breach of this
Section 11, or threatens a breach of this Section 11, Employer shall be entitled, in addition to all other rights and remedies as may be provided by law, to specific performance, injunctive and other equitable relief to
prevent or restrain a breach of this Section 11. 
 12. Developed Information. 
 a. Disclosure and Assignment of Developed Information. During Employee’s employment with Employer, Employee will, without
additional compensation, promptly disclose and, to the full extent allowed by law and subject to creation of such property, assign to Employer, all rights to which Employee may be entitled with respect to patents, trade secrets, copyrights, mask
works, trademarks, inventions, discoveries, designs, formulae, processes, methods, manufacturing techniques, improvements, ideas, copyrightable works, and other intellectual property: (a) which relate to Employer’s past, present or
demonstrated or reasonably foreseeable future business or research, whether or not developed during normal working hours; or (b) which are developed with the use or aid of any Employer equipment, supplies or facilities; or (c) which use or
are based on or developed from any proprietary or confidential information of Employer, or of a third party, access to which Employee obtains through Employer or in the course of his/her duties at Employer; or (d) which result from any work,
service, or duty Employee performs for Employer, and Employee agrees to waive any pre-emptive or other rights that he/she may have in such property. At all times, both during and after his/her employment with Employer, Employee will do whatever is
reasonably requested by Employer, at Employer’s expense, to assist Employer or its designee in obtaining and enforcing its rights throughout the world with respect to the assignments which Employee has made or is obligated to make to Employer
or its designee under this Agreement. Employee is not obligated to assign to Employer or its designee any rights in inventions which Employee develops entirely on his/her own time without using Employer’s equipment, supplies, facilities, or
trade secrets, except for inventions: (i) which relate at the time of conception or reduction to practice to Employer’s business, or actual or demonstrably anticipated research or development, or (ii) which result from any work
performed by Employee for Employer. In addition, to the extent permitted by federal copyright law, the parties agree that any works resulting from Employee’s work under this Agreement shall be “works for hire” as defined in federal
copyright law. 
 b. Preexisting Developments. Employee must notify management of any and all inventions, discoveries,
developments, improvements, and trade secrets which have been made or conceived or first reduced to practice by Employee alone or jointly with others prior to employment with Employer or during his/her employment but which does not fall within the
assignable developments described in Section 12(a) and which Employee desires to remove from the operation of this Agreement. If Employee does not so notify management, Employee represents that he/she has made no inventions,
improvements, developments, or improvements at the time of signing this Agreement that are to be removed from the operation of this Agreement. If Employee fails to make any required disclosure or breaches any term of Section 12(a),
Employee agrees that any applicable limitations periods shall be tolled and shall not run as to any claim, right, or cause of action Employer may have relating to such disclosure or breach that would have been discovered had the required
disclosure been made, until such time as Employer obtains actual knowledge of the facts giving rise to its claim. 
 13. Solicitation of
Employees Prohibited. Employee will be called upon to work closely with employees of Employer in performing services under this Agreement. All information about such employees that becomes known to Employee during the course of his/her
employment with Employer, and that is not otherwise known to the public, including compensation or commission structure, is confidential and shall not be used by Employee in soliciting employees of Employer at any time during or after termination of
his/her employment with Employer. During Employee’s employment and for two (2) years following the termination of Employee’s employment, Employee shall not directly or indirectly ask, 

  

					
		  	5	  	 Initials: Employer              Employee             

 
solicit, or encourage any employee(s) of Employer to leave their employment with Employer. Employee further agrees that he/she shall make any subsequent
employer aware of this non-solicitation obligation. 
 14. Representation Concerning Prior Agreements. Employee warrants that he/she
is not bound by any non-competition and/or non-solicitation or other agreement that would preclude, limit, or in any manner affect his/her employment with Employer. Employee further represents that he/she can fully perform the duties of his/her
employment without violating any obligations he/she may have to any former employer, including, but not limited to, misappropriating any proprietary information acquired from a prior employer. Employee agrees that he/she will indemnify and hold
Employer harmless from any and all liability and damage, including attorneys’ fees and costs, resulting from any breach of this provision. 
 15. Notices. All notices, demands, requests, consents, statements, satisfactions, waivers, designations, refusals, confirmations, denials, and other communications that may be required or otherwise provided for or contemplated
hereunder shall be in writing and shall be deemed to be properly given and received: (a) upon delivery, if delivered in person or by facsimile or e-mail transmission with receipt acknowledged; or (b) one business day after having been
deposited for overnight delivery with Federal Express or another comparable overnight courier service; or (c) three (3) business days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal
Service and sent by registered or certified mail, postage prepaid, addressed to Employee’s residence address (or such other address as Employee may specify in a written notice to Employer), or to Employer’s principal office. 
 16. Successors and Assigns. The rights and obligations of Employer under this Agreement shall inure to the benefit of and shall be binding upon
the successors and assigns of Employer. Employee shall not be entitled to assign any of his/her rights or obligations under this Agreement. Employee agrees that his/her obligations under Sections 11, 12, 15, and 22 of
this Agreement shall survive the termination of this Agreement. 
 17. Entire Agreement. Employee acknowledges receipt of this
Agreement and agrees that this Agreement represents the entire Agreement with Employer concerning the subject matter hereof, and supersedes any previous oral or written communications, representations, understandings, or agreements with Employer or
any officer or agent thereof, except for the terms of the Spy Confidentiality Agreement. Employee understands that no representative of the Employer has been authorized to enter into any agreement or commitment with Employee that is inconsistent in
any way with the terms of this Agreement. 
 18. Amendments. No amendment or modification of the terms or conditions of this Agreement
shall be valid unless in writing and signed by Employee and Employer’s Chief Executive Officer. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 
 19. Severability. In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction,
such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a
deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 
 20. Waiver. Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such
provision, or prevent that party thereafter from enforcing that provision and each and every other provision of this Agreement. 
 21.
Indemnification. Employer agrees to provide Employee with a defense and indemnification in accordance with the provisions of the California Labor Code against any third party claims related to or arising out of Employee’s employment with
or positions held for Employer; provided, 

  

					
		  	6	  	 Initials: Employer              Employee             

 
however, that Employer shall not be liable, and shall not provide a defense or indemnification for any claim wherein the Employee has acted outside
the course and scope of his/her employment. 
 22. Arbitration. 
 a. Agreement to Arbitrate. To the fullest extent permitted by law, Employee and Employer agree to arbitrate any controversy, claim
or dispute between them arising out of or in any way related to this Agreement, the employment relationship between Employer and Employee and any disputes upon termination of employment, including but not limited to breach of contract, tort,
discrimination, harassment, wrongful termination, demotion, discipline, failure to accommodate, family and medical leave, compensation or benefits claims, intellectual property claims, constitutional claims; and any claims for violation of any
local, state or federal law, statute, regulation or ordinance or common law. For the purpose of this agreement to arbitrate, references to “Employer” include all parent, subsidiary or related entities and their employees, supervisors,
officers, directors, agents, pension or benefit plans, pension or benefit plan sponsors, fiduciaries, administrators, affiliates and all successors and assigns of any of them, and this agreement shall apply to them to the extent Employee’s
claims arise out of or relate to their actions on behalf of Employer. By executing this Agreement, Employee and the Employer are both waiving the right to a jury trial with respect to any such disputes. 
 b. Consideration. The mutual promise by Employer and Employee to arbitrate any and all disputes between them rather than litigate
them before the courts or other bodies, provides the consideration for this agreement to arbitrate. 
 c. Initiation of
Arbitration. Either party may exercise the right to arbitrate by providing the other party with written notice of any and all claims forming the basis of such right in sufficient detail to inform the other party of the substance of such claims.
In no event shall the request for arbitration be made after the date when institution of legal or equitable proceedings based on such claims would be barred by the applicable statute of limitations. All issues of arbitrability shall be governed by
the Federal Arbitration Act. 
 d. Arbitration Procedure. The arbitration will be conducted in San Diego, California by
a single neutral arbitrator and in accordance with the then current rules for resolution of employment disputes of the American Arbitration Association (“AAA”) (available on-line at www.adr.org) or JAMS (available on-line at
www.jamsadr.com). The parties are entitled to representation by an attorney or other representative of their choosing. The arbitrator shall have the power to enter any award that could be entered by a judge of the trial court of the State of
California, and only such power, and shall follow the law. The parties agree to abide by and perform any award rendered by the arbitrator. The arbitrator shall issue the award in writing and therein state the essential findings and conclusions on
which the award is based. Judgment on the award may be entered in any court having jurisdiction thereof. Any final judgment rendered by the arbitrator may only be appealed on the grounds of improper bias or improper conduct of the arbitrator.

 e. Costs of Arbitration. Employer shall bear the costs of the arbitration filing and hearing fees and the fees of
the arbitrator. 
 23. Attorneys’ Fees. Each side will bear its own attorneys’ fees in any dispute unless a statutory
section at issue, if any, authorizes the award of attorneys’ fees to the prevailing party. 
 24. Construction. The headings set
forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing Employer, but Employee has participated in the negotiation of its terms.
Furthermore, Employee acknowledges that Employee has had an opportunity to review and revise the Agreement and has had it reviewed by legal counsel, if desired, and, therefore, the rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of this Agreement. 
  

					
		  	7	  	 Initials: Employer              Employee             

 25. Employee Acknowledgment. Employee acknowledges that he/she has been advised by Employer to
consult with independent counsel of his/her own choice, at his/her expense, concerning this Agreement, that he/she has had the opportunity to do so, and that he/she has taken advantage of that opportunity to the extent that he/she desires. Employee
further acknowledges that he/she has read and understands this Agreement, is fully aware of its legal effect, and has entered into it freely based on his/her own judgment. 
 26. Governing Law. This Agreement will be governed by and construed in accordance with the laws of the United States and the State of California.
Each party consents to the jurisdiction and venue of the state or federal courts in San Diego, California, if applicable, in any action, suit, or proceeding arising out of or relating to this Agreement. 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 
  

									
	 Orange 21 Inc.
	 		 	 Employee:

				
	 By
	 	 /s/ Barry Buchholtz
	 		 	 /s/ Jerry Kohlscheen

		 	 Barry Buchholtz
	 		 	 Name:
	 	 Jerry Kohlscheen

		 	 Chief Executive Officer
	 		 	 Address:
	 	 6454 Willow Place

		 		 		 		 	 Carlsbad, CA 92011

  

					
		  	8	  	 Initials: Employer              Employee             

 EXHIBIT A 
 TERMS OF (1) COMMISSION PROGRAM, (2) PROFIT SHARING, (3) BONUS PROGRAM, (4) STOCK OPTION AND (5) SEVERANCE PROGRAM APPLICABLE FOR FISCAL YEAR 2006  
 (AS APPLICABLE) 
 (note: to be
completed, if applicable, or marked “not applicable” otherwise) 
  

			
	COMMISSION PROGRAM:	  	n/a
		
	PROFIT SHARING:	  	n/a
		
	BONUS PROGRAM:	  	up to Sixty Thousand Dollars ($60,000) payable as follows:
		
		  	 •      up to Fifty Percent (50%) of such potential bonus (i.e., up to $30,000) shall be payable in the
discretion of the Board if the Company achieves financial performance for fiscal year 2006 equal to or exceeding the Company’s financial plan for 2006, as approved by the Board; and

		
		  	 •      up to Fifty Percent (50%) of such potential bonus (i.e., up to $30,000) shall be payable at the
discretion of the Company’s Chief Executive Officer if certain operational targets to be established between the Chief Executive Officer and Mr. Kohlscheen for fiscal 2006 are achieved (as determined by the Chief Executive
Officer).

		
	STOCK OPTIONS:	  	n/a
		
	SEVERANCE PROGRAM:	  	n/a

  

					
		  	9	  	 Initials: Employer              EmployeeClass A(2006-2) Terms Document

 Exhibit 4.1 
 EXECUTION COPY 
  

 MBNA CREDIT CARD MASTER NOTE TRUST 
 as Issuer 
 CLASS A(2006-2) TERMS DOCUMENT 
 dated as of March 7, 2006 
 to 
 MBNASERIES INDENTURE SUPPLEMENT

 dated as of May 24, 2001 
 to 
 INDENTURE 
 dated
as of May 24, 2001 
 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	  	5
			
	 Section 1.04.
	  	Ratification of Indenture and Indenture Supplement	  	5
		
	ARTICLE II	  	
	THE CLASS A(2006-2) NOTES	  	
			
	 Section 2.01.
	  	Creation and Designation	  	7
			
	 Section 2.02.
	  	Specification of Required Subordinated Amount and other Terms	  	7
			
	 Section 2.03.
	  	Interest Payment	  	7
			
	 Section 2.04.
	  	Calculation Agent; Determination of LIBOR.	  	8
			
	 Section 2.05.
	  	Payments of Interest and Principal	  	8
			
	 Section 2.06.
	  	Form of Delivery of Class A(2006-2) Notes; Depository; Denominations	  	9
			
	 Section 2.07.
	  	Delivery and Payment for the Class A(2006-2) Notes	  	9
			
	 Section 2.08.
	  	Targeted Deposits to the Accumulation Reserve Account	  	9
		
	ARTICLE III	  	
	REPRESENTATIONS AND WARRANTIES	  	
			
	 Section 3.01.
	  	Issuer’s Representations and Warranties.	  	10

  

 -i- 

 THIS CLASS A(2006-2) TERMS DOCUMENT (this “Terms Document”), by and between MBNA CREDIT
CARD MASTER NOTE 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 March 7, 2006. 
 Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall create a new tranche of Class A Notes and shall specify the principal terms thereof. 
 ARTICLE I 
 Definitions and Other Provisions of General Application 

Section 1.01. Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise
requires: 
  

	 	(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 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 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 A(2006-2) 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 A(2006-2) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the
Monthly Period following the first Transfer Date following and including the December 2010 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 2%, but in such event the Accumulation Reserve Funding Period shall not
be required to commence earlier than 24 months prior to the Expected Principal Payment Date, (iii) the Monthly Period following the first Transfer Date following and including the June 2011 Transfer Date for which the Quarterly Excess Available
Funds Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 18 months prior to the Expected Principal Payment Date, and (iv) the Monthly Period following the first
Transfer Date following and including the August 2011 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 4%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than
16 months prior to the Expected Principal Payment Date and (y) ending on the close of business on the last day of the Monthly Period preceding the earlier to occur of (i) the Expected Principal Payment Date for the Class A(2006-2) Notes
and (ii) the date on which the Class A(2006-2) Notes are paid in full. 
 “Base Rate” means, with respect to any
Monthly Period, the sum of (i) the Weighted Average Interest Rates for the Outstanding MBNAseries Notes, (ii) the Net Servicing Fee Rate (as such term is defined in the Series 2001-D Supplement) and (iii) so long as MBNA or The Bank
of New York is the Servicer, the Servicer Interchange Rate, in each case, for such Monthly Period. 
 “Calculation Agent” is
defined in Section 2.04(a). 
 “Class A(2006-2) Note” means any Note, substantially in the form set forth in
Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2006-2) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class A(2006-2) Noteholder” means a Person in whose name a Class A(2006-2) Note is registered in the Note Register. 
 “Class A(2006-2) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2006-2) Notes is paid in full,
(b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article VI thereof. 
 “Class A Required Subordinated Amount of Class B Notes” is defined in Section 2.02(a). 
 “Class A Required Subordinated Amount of Class C Notes” is defined in Section 2.02(b). 
 “Controlled Accumulation Amount” means $45,833,333.34; provided, however, if the Accumulation Period Length is determined to be less than twelve (12) months pursuant to Section 3.10(b)(ii) of
the Indenture Supplement, the Controlled Accumulation Amount shall be the 
  

 2 

 amount specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 

“Excess Available Funds Percentage” means, with respect to any Transfer Date, the amount, if any, by which the Portfolio Yield for
the preceding Monthly Period exceeds the Base Rate for such Monthly Period. 
 “Expected Principal Payment Date” means
January 15, 2013. 
 “Initial Dollar Principal Amount” means $550,000,000. 
 “Interest Payment Date” means the fifteenth day of each month, or if such fifteenth day is not a Business Day, the next succeeding
Business Day, commencing April 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 March 7, 2006. 
 “Legal Maturity Date” means June 15, 2015. 
 “LIBOR” means, for any
Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the Calculation Agent on the LIBOR Determination Date for each Interest Period in accordance with the provisions of
Section 2.04. 
 “LIBOR Determination Date” means (i) March 3, 2006 for the period from and including
the Issuance Date to but excluding March 15, 2006, (ii) March 13, 2006 for the period from and including March 15, 2006 to but excluding April 17, 2006 and (iii) 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. 
 “MBNAseries
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 MBNAseries 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. 
 “Note Interest Rate” means a per annum rate equal to 0.06% 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, the numerator of which is (a) the amount of Available Funds allocated to the MBNAseries 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 MBNAseries Available Funds pursuant to Sections 3.20(d) and 3.27(a) of the Indenture Supplement, plus (d) the MBNAseries 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 MBNAseries 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
MBNAseries Notes for such Monthly Period, minus (f) the MBNAseries Investor Default Amount for such Monthly Period, and the denominator of which is the Weighted Average Available Funds Allocation Amount for the MBNAseries for such
Monthly Period. 
 “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 306 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note
shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
 “Quarterly Excess Available Funds
Percentage” means, with respect to the December 2010 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 A(2006-2) Notes as of the close of business on the last day of the preceding Monthly Period
or (ii) any other amount designated by the Issuer; provided, however, that if such designation is of a lesser amount, the Note Rating Agencies shall have provided prior written confirmation that a Ratings Effect will not occur
with respect to such change. 
 “Servicer Interchange Rate” means, for any Monthly Period, the percentage equivalent of a
fraction, the numerator of which is the MBNAseries Servicer Interchange for such Monthly Period, and the denominator of which is the Weighted Average Available Funds Allocation Amount for the MBNAseries for such Monthly Period. 
 “Stated Principal Amount” means $550,000,000. 
  

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 “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 MBNAseries, or of all of the Outstanding Notes of the MBNAseries, 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. 
 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 
  

 5 

 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 A(2006-2) Notes 
 Section 2.01. Creation and Designation. There is hereby
created a tranche of MBNAseries Class A Notes to be issued pursuant to the Indenture and the MBNAseries Indenture Supplement to be known as the “MBNAseries Class A(2006-2) Notes.” 
 Section 2.02. Specification of Required Subordinated Amount and other Terms. 
 (a) For the Class A(2006-2) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal to
8.82353% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2006-2) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2006-2) Notes shall have occurred, if an Event of Default and
acceleration of the Class A(2006-2) Notes shall have occurred or if the Class A Usage of the Class B Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of
the Class A(2006-2) Notes as of close of business on the day immediately preceding the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A Usage of Class B Required Subordinated
Amount exceeded zero. 
 (b) For the Class A(2006-2) Notes for any date of determination, the Class A Required Subordinated Amount of
Class C Notes will be an amount equal to 8.82353% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2006-2) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2006-2) Notes shall have
occurred, if an Event of Default and acceleration of the Class A(2006-2) Notes shall have occurred or if the Class A Usage of the Class C Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted
Outstanding Dollar Principal Amount of the Class A(2006-2) Notes as of close of business on the day immediately preceding the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A
Usage of Class C Required Subordinated Amount exceeded zero. 
 (c) The Issuer may change the percentages set forth in clause (a) or
(b) above without the consent of any Noteholder so long as the Issuer has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes of the MBNAseries that the change in either of such percentages
will not result in a Ratings Effect with respect to any Outstanding Class A(2006-2) Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion. 
 Section 2.03. Interest Payment. 
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class A(2006-2) Notes shall be an amount equal to the product of (i)(A) a fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Note Interest Rate in effect with respect to the related Interest Period, times (ii) the Outstanding Dollar Principal Amount of the Class A(2006-2) Notes
determined as of the Record Date preceding the related Transfer Date. Interest on the Class A(2006-2) 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 Transfer Date, the
Indenture Trustee shall deposit into the Class A(2006-2) Interest Funding sub-Account the portion of MBNAseries Available Funds allocable to the Class A(2006-2) Notes. 
 Section 2.04. Calculation Agent; Determination of LIBOR. 
 (a) The Issuer hereby agrees that for
so long as any Class A(2006-2) Notes are Outstanding, there shall at all times be an agent appointed to calculate LIBOR for each Interest Period (the “Calculation Agent”). The Issuer hereby initially appoints the Indenture Trustee
as the Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation Agent may be removed by the Issuer at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuer, or if
the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuer shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuer or its Affiliates. The
Calculation Agent may not resign its duties, and the Issuer may not remove the Calculation Agent, without a successor having been duly appointed. 
 (b) On each LIBOR Determination Date, the Calculation Agent shall determine LIBOR on the basis of the rate for deposits in United States dollars for a one-month period which appears on Telerate Page 3750 as of 11:00 a.m., London time, on
such date. If such rate does not appear on Telerate Page 3750, the rate for that LIBOR Determination Date shall be determined on the basis of the rates at which deposits in United States dollars are offered by the Reference Banks at approximately
11:00 a.m., London time, on that day to prime banks in the London interbank market for a one-month period. The Calculation Agent shall request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least
two such quotations are provided, the rate for that LIBOR Determination Date shall be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic
mean of the rates quoted by four major banks in New York City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks for a one-month period. 

(c) The Note Interest Rate applicable to the then current and the immediately preceding Interest Periods may be obtained by telephoning the Indenture
Trustee at its corporate trust office at (212) 815-3247 or such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time.

 (d) On each LIBOR Determination Date, the Calculation Agent shall send to the Indenture Trustee and the Beneficiary, by facsimile
transmission, notification of LIBOR for the following Interest Period. 
 Section 2.05. Payments of Interest and Principal.

 (a) Any installment of interest or principal, if any, payable on any Class A(2006-2) Note which is punctually paid or duly provided for by
the Issuer and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class A(2006-2) Note (or one or more Predecessor Notes) is registered on the
Record Date, by wire transfer of immediately available funds to such 
  

 8 

 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(2006-2) Noteholders to receive payments from the Issuer will terminate on the first Business Day following
the Class A(2006-2) Termination Date. 
 Section 2.06. Form of Delivery of Class A(2006-2) Notes; Depository; Denominations.

 (a) The Class A(2006-2) Notes shall be delivered in the form of a global Registered Note as provided in Sections 202 and
301(i) of the Indenture, respectively. 
 (b) The Depository for the Class A(2006-2) Notes shall be The Depository Trust Company, and
the Class A(2006-2) Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class A(2006-2) Notes
will be issued in minimum denominations of $5,000 and multiples of $1,000 in excess of that amount. 
 Section 2.07. Delivery and
Payment for the Class A(2006-2) Notes. The Issuer shall execute and deliver the Class A(2006-2) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2006-2) Notes when authenticated, each in
accordance with Section 303 of the Indenture. 
 Section 2.08. Targeted Deposits to the Accumulation Reserve Account.
The deposit targeted to be made to the Accumulation Reserve Account for any Monthly Period during the Accumulation Reserve Funding Period will be an amount equal to the Required Accumulation Reserve sub-Account Amount. 
 [END OF ARTICLE II] 
  

 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.

 (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] 
  

 10 

 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. 
  

			
	MBNA CREDIT CARD MASTER NOTE TRUST,
	by MBNA AMERICA BANK,
	 NATIONAL ASSOCIATION, as Beneficiary
 and not
in its individual capacity

		
	By:	 	 /s/ Scott W. McCarthy

		 	Scott W. McCarthy
		 	Executive 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 A(2006-2) Terms Document]

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