Document:

Terms Document

 Exhibit 4.1 
  

 CAPITAL ONE MULTI-ASSET EXECUTION TRUST 
 as Issuer 
 and 
 THE BANK OF NEW YORK 
 as Indenture Trustee 
 CLASS A(2006-3) TERMS DOCUMENT 
 dated
as of March 1, 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	  	6
			
	Section 1.03.	  	Counterparts	  	7
			
	Section 1.04.	  	Ratification of Indenture, Asset Pool 1 Supplement and Indenture Supplement	  	7
		
	 ARTICLE II
 The
Class A(2006-3) 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.	  	[Reserved].	  	9
			
	Section 2.05.	  	Payments of Interest and Principal	  	9
			
	Section 2.06.	  	Form of Delivery of Class A(2006-3) Notes; Depository; Denominations	  	9
			
	Section 2.07.	  	Delivery and Payment for the Class A(2006-3) Notes	  	9
			
	Section 2.08.	  	Targeted Deposits to the Accumulation Reserve Account	  	9
			
	Section 2.09.	  	[Reserved]	  	9

  

 -i- 

 THIS CLASS A(2006-3) 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 1, 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(2006-3) 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.” 

  

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 “Accumulation Period Amount” means $33,333,333.34; 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(2006-3) 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 2014 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(2006-3) 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 2014 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(2006-3) 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 2014 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(2006-3) 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(2006-3) Notes and (ii) the date on which the Class A(2006-3) 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. 
 “Class A(2006-3) Adverse Event” means the occurrence of any of the following:
(a) an Early Redemption Event with respect to the Class A(2006-3) Notes or (b) an Event of Default and acceleration of the Class A(2006-3) Notes. 
 “Class A(2006-3) Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2006-3) Note and duly executed and
authenticated in accordance with the Indenture. 
 “Class A(2006-3) Noteholder” means a Person in whose name a Class
A(2006-3) Note is registered in the Note Register. 
 “Class A(2006-3) Termination Date” means the earliest to occur of
(a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2006-3) 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. 
 “Expected
Principal Payment Date” means February 16, 2016. 
  

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 “Initial Dollar Principal Amount” means $400,000,000. 
 “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 1, 2006. 
 “Legal Maturity Date” means December 17, 2018.

 “Maximum Subordination Amount of Class B Notes” means, for the Class A(2006-3) Notes for any date of determination,
an amount equal to the product of (a) Adjusted Outstanding Dollar Principal Amount of the Class A(2006-3) 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 5.05%. 
 “Paying Agent” means The Bank of New York. 
 “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 
  

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 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 2014 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. 
 “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(2006-3) 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(2006-3) Notes for any date of determination, an amount equal to
the product of (a) the Required Subordinated Percentage of Class B Notes for such Class A(2006-3) Notes on such date of determination and (b) the Adjusted Outstanding Dollar Principal Amount of such Class A(2006-3) 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(2006-3) Notes; provided further, however, that for any date of determination on or
after the occurrence and during the continuation of a Class A(2006-3) Adverse Event, the Required Subordinated Amount of Class B Notes for the Class A(2006-3) 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(2006-3) Adverse Event shall have occurred. 
 “Required Subordinated Amount of Class C Notes” means, for the Class A(2006-3) 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(2006-3) Notes on such date of determination and (b) the Adjusted Outstanding Dollar Principal Amount of such Class A(2006-3) 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(2006-3) Notes will not be less 
  

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 than an amount equal to (i) 3.0% of the Initial Dollar Principal Amount of the Class A(2006-3) Notes, minus
(ii) the Required Subordinated Amount of Class D Notes for the Class A(2006-3) Notes; provided further, however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2006-3)
Adverse Event, the Required Subordinated Amount of Class C Notes for the Class A(2006-3) 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(2006-3) 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(2006-3) 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(2006-3) Notes on such date of determination and (b) the Adjusted Outstanding Dollar Principal Amount of such Class A(2006-3) 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(2006-3) Notes will not be less than an amount equal to
1.2049% of the Initial Dollar Principal Amount of the Class A(2006-3) Notes, provided further, however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2006-3) Adverse Event, the
Required Subordinated Amount of Class D Notes for the Class A(2006-3) 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(2006-3) 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 Percentage of Class B Notes” means, for the Class A(2006-3) Notes, 10.8434%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class C Notes” means, for the Class A(2006-3) Notes, 8.4338%, subject to adjustment in
accordance with Section 2.02. 
 “Required Subordinated Percentage of Class D Notes” means, for the
Class A(2006-3) Notes, 1.2049%, subject to adjustment in accordance with Section 2.02. 
 “Stated Principal
Amount” means $400,000,000. 
 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 
  

 6 

 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] 
  

 7 

 ARTICLE II 
 The Class A(2006-3) 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(2006-3) 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(2006-3) 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(2006-3) 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(2006-3) Notes immediately prior to giving effect to such change and (y) the Required Subordinated Amount of Class B Notes for the Class A(2006-3) 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(2006-3) 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(2006-3) 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(2006-3) 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(2006-3) 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(2006-3) Notes shall be an amount equal to one-twelfth of the product of (i) the Note Interest Rate times (ii) the Outstanding Dollar
Principal Amount of the Class A(2006-3) Notes determined as of the Record Date preceding the related Distribution Date; provided however that for the first Interest Payment Date the amount of interest due is $2,468,888.89. Any interest on the Class
A(2006-3) Notes will be calculated on the basis of a 360-day year consisting of twelve 30-day months. 
  

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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(2006-3) Interest Funding sub-Account the portion of Card Series Finance Charge Amounts allocable to the Class A(2006-3) Notes. 
 Section 2.04. [Reserved]. 
 Section 2.05. Payments of Interest and Principal. 
 (a) Any installment of interest or principal, if any, payable on any
Class A(2006-3) 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(2006-3) 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(2006-3) Noteholders to receive payments from the Issuer will terminate on the first Business Day
following the Class A(2006-3) Termination Date. 
 Section 2.06. Form of Delivery of Class A(2006-3) Notes; Depository;
Denominations. 
 (a) The Class A(2006-3) 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(2006-3) Notes shall be The Depository Trust
Company, and the Class A(2006-3) Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class
A(2006-3) 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(2006-3) Notes. The Issuer shall execute and deliver the Class A(2006-3) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class
A(2006-3) 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. [Reserved].  
 [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(2006-3) Terms Document]Third Amendment to Credit Agreement, dated as March 1, 2006

 Exhibit 10.1 
 THIRD AMENDMENT TO CREDIT AGREEMENT 
 THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this
“Amendment”), dated as of March 1, 2006, is entered into among HEALTH NET, INC., a Delaware corporation (the “Borrower”), the Lenders and BANK OF AMERICA, N.A., as administrative
agent (the “Administrative Agent”). Terms used but not otherwise defined herein shall have the meanings provided in the Credit Agreement described below. 
 W I T N E S S E T H 
 WHEREAS, the Borrower, the Lenders party thereto,
and the Administrative Agent entered into that certain Credit Agreement dated as of June 30, 2004, as amended by that certain First Amendment to Credit Agreement dated as of March 2, 2005, as amended by that certain Second Amendment to
Credit Agreement dated as of August 8, 2005 (the “Existing Credit Agreement”); 
 WHEREAS, the Borrower
has requested that the Required Lenders agree to amend certain provisions of the Credit Agreement as hereinafter set forth; and 
 WHEREAS, the Required Lenders have agreed to such modifications on the terms and conditions set forth herein. 
 NOW,
THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 PART 1 
 DEFINITIONS 

SUBPART 1.1 Certain Definitions. Unless otherwise defined herein or the context otherwise requires, the following terms used in this
Amendment, including its preamble and recitals, have the following meanings: 
 “Amended Credit Agreement”
means the Existing Credit Agreement as amended hereby. 
 “Amendment No. 3 Effective Date” is defined in
Subpart 3.1. 
 SUBPART 1.2 Other Definitions. Unless otherwise defined herein or the context otherwise requires, terms
used in this Amendment, including its preamble and recitals, have the meanings provided in the Existing Credit Agreement. 

 PART 2 
 AMENDMENTS TO EXISTING CREDIT AGREEMENT 
 Effective on (and subject to the occurrence of) the
Amendment No. 3 Effective Date, the Existing Credit Agreement is hereby amended in accordance with this Part 2. 
 SUBPART 2.1
Amendments to Section 1.01. Section 1.01 of the Existing Credit Agreement is hereby amended in the following respects: 
 (a) Clause (c) of the definition of “Funded Indebtedness” set forth in Section 1.01 of the Existing Credit Agreement is hereby amended in its entirety to read as follows: 
 (c) all obligations arising under unreimbursed obligations arising under letters of credit, bankers’ acceptances, bank guaranties,
surety bonds and similar instruments that are or should be reflected at such date on the Borrower’s consolidated balance sheet in accordance with GAAP; 
 (b) A new clause (e) is hereby added to the definition of “Indebtedness” set forth in Section 1.01 of the Existing Credit Agreement immediately following clause (d), such clause (e) to
read as follows: 
 (e) all obligations arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments; 
 (c) The definition of “Letter of Credit Sublimit” set
forth in Section 1.01 of the Existing Credit Agreement is hereby amended in its entirety to read as follows: 
 “Letter of Credit Sublimit” means an amount equal to the lesser of (a) the Aggregate Commitments and (b) $300,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments.

 (d) The definition of “Minimum Borrower Cash Flow Fixed Charge Coverage Ratio” set forth in Section 1.01 of the
Existing Credit Agreement is hereby amended in its entirety to read as follows: 
 “Minimum Borrower Cash Flow Fixed
Charge Coverage Ratio” means, for any period of four consecutive fiscal quarters, the ratio of (a) (i) the aggregate amount of all cash on hand of the Borrower on the date twelve months prior to the date of such
calculation plus (ii) the aggregate amount (such aggregate amount to be delineated on a Subsidiary-by-Subsidiary basis) of all dividends of the Subsidiaries of the Borrower to the Borrower for such period plus (iii) to
the extent not included in clause (ii) immediately above, the aggregate amount (such aggregate amount to be delineated on a Subsidiary-by-Subsidiary basis) of all cash distributed from non-regulated Subsidiaries of the Borrower to the Borrower
for such period plus/minus (iv) the aggregate amount (such aggregate amount to be delineated on a Subsidiary-by-Subsidiary basis) of all payments on intercompany loans between the Borrower and its Subsidiaries minus
(v) the aggregate amount (such aggregate amount to be delineated on a Subsidiary-by-Subsidiary basis) of all other capital contributions by the Borrower into regulated Subsidiaries of the 

 
Borrower during such period (other than a Designated Capital Contribution) minus (vi) the aggregate amount (such aggregate amount to be
delineated on a Subsidiary-by-Subsidiary basis) of all Investments by the Borrower into non-regulated Subsidiaries of the Borrower during such period minus (vii) the aggregate amount of all capital expenditures of the Borrower during
such period plus/minus (viii) the aggregate of all cash Taxes of the Borrower and its Subsidiaries paid by the Borrower during such period (net of the aggregate amount of all cash received by the Borrower from regulated and non-regulated
Subsidiaries of the Borrower pursuant to all tax sharing arrangements between the Borrower and such Subsidiaries) during such period to (b) (i) Consolidated Scheduled Funded Debt Payments for such period plus (ii) the aggregate
amount of all public dividends of the Borrower paid during such period plus (iii) the net amount of Consolidated Rental Expense paid by the Borrower and not reimbursed by the Subsidiaries for such period. 
 SUBPART 2.2 Amendments to Section 7.09. The proviso to Section 7.09 of the Existing Credit Agreement is hereby amended and
restated in its entirety to read as follows: 
 7.09 Restricted Payments. 
 provided that during any period in which a Ratings Downgrade has occurred and is continuing, the aggregate amount of all such
Restricted Payments pursuant to this clause (c) shall not exceed $75,000,000 for any consecutive four quarter period, beginning with the first fiscal quarter following such Ratings Downgrade; it being understood however that this proviso does
not in any way limit (i) Restricted Payments permitted by clauses (a) and (b) hereof or (ii) other repurchases, redemptions or retirements of the capital stock of the Borrower, to the extent such repurchases, redemptions or
retirements are in an amount equal to the sum of the proceeds received by the Borrower from the exercise of stock options held by employees, management or directors of the Borrower, plus any tax benefit to the Borrower related to such exercise.

 SUBPART 2.3 Amendments to Section 8.01(e). The last proviso to Section 8.01(e) of the Existing Credit Agreement is
hereby amended to delete the reference to “not” contained in such proviso. 
 PART 3 
 CONDITIONS TO EFFECTIVENESS 
 SUBPART 3.1 Amendment No. 3 Effective Date. This Amendment shall be and become effective as of the date hereof (the “Amendment No. 3 Effective Date”) when all of the conditions set forth in this
Part 3 shall have been satisfied, and thereafter this Amendment shall be known, and may be referred to, as the “Amendment”. 
 SUBPART 3.2 Execution of Counterparts of Amendment. The Administrative Agent shall have received counterparts of this Amendment, which collectively shall have been duly executed on behalf of each of the Borrower, the Required
Lenders and the Administrative Agent. 

 SUBPART 3.3 Fees and Expenses. The Administrative Agent shall have received, (i) for
the account of each Lender who executes and approves this Amendment on or before 1:00 P.M. (EST) on February 28, 2006, an amendment fee equal to 5 basis points of the Commitment of each such approving Lender, which fee shall be due and payable
to each approving Lender when all of the conditions set forth in this Part 3 shall have been satisfied and (ii) on the date hereof, all out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation,
execution and delivery of this Amendment (including without limitation the fees and expenses of Moore & Van Allen PLLC, special counsel to the Administrative Agent to the extent the Borrower has received an invoice prior to the Amendment
No. 3 Effective Date). 
 PART 4 
 MISCELLANEOUS 
 SUBPART 4.1 Representations and Warranties. The Borrower hereby
represents and warrants to the Administrative Agent and the Lenders that, after giving effect to this Amendment, (a) no Default or Event of Default exists under the Existing Credit Agreement and (b) the representations and warranties set
forth in Article V of the Existing Credit Agreement (i) that contain a materiality qualification are true and correct on and as of the date hereof, subject to the limitations set forth therein, as if made on and as of such date (except to the
extent such representations and warranties expressly relate to another date in which case such representations and warranties shall be true and correct as of such date) and (ii) that do not contain a materiality qualification are true and
correct in all material respects on and as of the date hereof, subject to the limitations set forth therein, as if made on and as of such date (except to the extent such representations and warranties expressly relate to another date in which case
such representations and warranties shall be true and correct in all material respects as of such date). 
 SUBPART 4.2
Cross-References. References in this Amendment to any Part or Subpart are, unless otherwise specified, to such Part or Subpart of this Amendment. 
 SUBPART 4.3 Instrument Pursuant to Existing Credit Agreement. This Amendment is executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed,
administered and applied in accordance with the terms and provisions of the Existing Credit Agreement. 
 SUBPART 4.4 References in
Other Loan Documents. At such time as this Amendment shall become effective pursuant to the terms of Subpart 3.1, all references to the “Credit Agreement” shall be deemed to refer to the Credit Agreement as amended by this
Amendment. 
 SUBPART 4.5 Counterparts/Telecopy. This Amendment may be executed by the parties hereto in several counterparts,
each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. Delivery of executed counterparts of the Amendment by telecopy shall be effective as an original and shall constitute a
representation that an original shall be delivered. 
 SUBPART 4.6 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAW RULES). 

 SUBPART 4.7 Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. 
 SUBPART 4.8 General. Except as amended hereby,
the Existing Credit Agreement and all other credit documents shall continue in full force and effect. 
 [Remainder of Page Intentionally Left
Blank] 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Credit Agreement as of
the date first above written. 
  

									
	BORROWER:	 		 	 HEALTH NET, INC.,
 a Delaware corporation

					
		 		 		 	 By:
	 	 /s/ Wisdom Lu

		 		 		 	 Name:
	 	Wisdom Lu
		 		 		 	 Title:
	 	Treasurer

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

									
	ADMINISTRATIVE AGENT:	 		 	BANK OF AMERICA, N.A.
					
		 		 		 	 By:
	 	 /s/ Kevin L. Ahart

		 		 		 	 Name:
	 	Kevin L. Ahart
		 		 		 	 Title:
	 	Assistant Vice President

									
	LENDERS:	 		 	 BANK OF AMERICA, N.A., as L/C Issuer,
 Swing Line Lender as a Lender

					
		 		 		 	 By:
	 	 /s/ Joseph L. Corah

		 		 		 	 Name:
	 	Joseph L. Corah
		 		 		 	 Title:
	 	Senior Vice President

			
	CITICORP USA, INC.
		
	By:	 	 /s/ Peter C. Bickford

	 Name:
	 	Peter C. Bickford
	 Title:
	 	 Vice President Citicorp USA. Inc. /
 Managing
Director

			
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Dawn Lee Lum

	 Name:
	 	Dawn Lee Lum
	 Title:
	 	Vice President

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	THE BANK OF NEW YORK
		
	By:	 	 /s/ Jonathan Rollins, CFA

	 Name:
	 	Jonathan Rollins, CFA
	 Title:
	 	Vice President

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	UNION BANK OF CALIFORNIA, N.A.
		
	By:	 	 /s/ Robert Tietjen

	 Name:
	 	Robert Tietjen
	 Title:
	 	Vice President

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	THE BANK OF NOVA SCOTIA
		
	By:	 	 /s/ Dana Maloney

	 Name:
	 	Dana Maloney
	 Title:
	 	Managing Director

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	WELLS FARGO BANK, N.A.
		
	By:	 	 /s/ Lucy Nixon

	 Name:
	 	Lucy Nixon
	 Title:
	 	Senior Vice President

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	MIZUHO CORPORATE BANK, LTD.
		
	By:	 	 /s/ Raymond Ventura

	 Name:
	 	Raymond Ventura
	 Title:
	 	Deputy General Manager

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	NATIONAL CITY BANK
		
	By:	 	 /s/ Gustavus A. Bahr

	 Name:
	 	Gustavus A. Bahr
	 Title:
	 	Vice President

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	SUMITOMO MITSUI BANKING CORPORATION
		
	By:	 	 /s/ Yoshihiro Hyakutome

	 Name:
	 	Yoshihiro Hyakutome
	 Title:
	 	Joint General Manager

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006 

			
	UBS LOAN FINANCE LLC
		
	By:	 	 /s/ Irja R. Otsa

	 Name:
	 	Irja R. Otsa
	 Title:
	 	 Associate Director
 Banking Products Services,
US

		
	By:	 	 /s/ Richard L. Tavrow

	 Name:
	 	Richard L. Tavrow
	 Title:
	 	 Director
 Banking Products Services,
US

 Signature Page to Third Amendment 
 and Consent to Credit Agreement 
 Health Net, Inc. 
 March 2006

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