Document:

AMENDED AND RESTATED EMPLOYEE DEFERRED COMPENSATION: DAVID E. ROYAL

 Exhibit 10.4 
  
 STATE OF NORTH CAROLINA 
  
 COUNTY OF WAKE 
  
 EMPLOYEE DEFERRED COMPENSATION, 
 CONSULTATION, POST-RETIREMENT 

NON-COMPETITION AND DEATH BENEFIT AGREEMENT 
  
 THIS AGREEMENT is made, entered into and effective as of the 24th day of May, 2004, by and between THE FIDELITY BANK, a North Carolina
banking corporation with its principal office in Fuquay-Varina, North Carolina (“Employer”) and DAVID E. ROYAL (“Employee”); 
  
 W I T N E S S E T H 
  
 WHEREAS, Employee is an employee of Employer who has provided guidance, leadership and direction in the growth, management and development of
Employer and has learned trade secrets, confidential procedures and information, and technical and sensitive plans of Employer; and, 
  
 WHEREAS, Employer desires to limit Employee’s availability to other employers or entities which are in competition with Employer following
Employee’s retirement from employment with Employer; and, 
  
 WHEREAS, Employer has offered to Employee a non-competition arrangement and a deferred compensation/consultation arrangement together with a death benefit arrangement for Employee’s designated beneficiary or estate, as
applicable, and the parties hereto have reached an agreement concerning those arrangements and other matters contained herein and desire to set forth the terms and conditions thereof. 
  
 NOW, THEREFORE, for and in consideration of the mutual promises and undertakings herein set forth, Employee and
Employer hereby agree as follows: 
  
 1. Deferred
Compensation/Consultation Payments. In the event Employee retires from employment on Employee’s “Retirement Date” (as defined below), Employer shall pay to Employee the sum of Two Thousand Eighty-Three and 33/100 Dollars
($2,083.33) per month, beginning not later than two months after Employee’s Retirement Date, for a period of ten years following Employee’s Retirement Date or until his death, whichever first occurs (“Deferred
Compensation/Consultation Payments”). Such monthly payments shall be paid for and in consideration of Employee’s support, sponsorship, advisory and other services provided to Employer (“Consultation Services”); such sum to be
payable to Employee whether or not Employee’s Consultation Services have been utilized by Employer. Except as set forth below, Deferred Compensation/Consultation Payments hereunder shall be payable each month without deductions and Employee
agrees to be solely responsible for the payment of all income and other taxes out of said funds and all Social Security, self-employment and any other taxes or assessments, if any applicable on said compensation. 

 For and in consideration of said monthly Deferred Compensation/Consultation Payments to Employee,
Employee will provide Consultation Services as an independent contractor to Employer, as and when Employer may request, which services may be provided with respect to all phases of Employer’s business and particularly those phases in which
Employee has particular expertise and knowledge. Employee’s services shall be limited to those of an independent consultant, shall not be on a day-to-day regularly scheduled operational basis and shall be provided only when Employee is
reasonably available and willing. Employer shall make available to Employee such office space and equipment as are reasonably necessary for Employee to carry out the obligations under this Agreement and shall reimburse Employee for any extraordinary
expenses incurred in carrying out the obligations hereunder. 
  
 Effective as of Employee’s Retirement Date, Employee and Employer agree that Employee shall be, under the terms of this Agreement, an independent contractor, and Employee agrees that his rights and privileges and his obligations are as
provided in this Agreement as to matters covered herein. 
  
 Notwithstanding the foregoing, if Employer determines that the Deferred Compensation/Consulting Payments will constitute deferred compensation rather than payments for Consultation Services, such payments shall be subject to any and all
applicable withholding, Social Security, employment, income and other taxes or assessments, if any, which apply to deferred compensation under the applicable tax law. 
  
 If Employee should die during the ten-year period during which Deferred Compensation/Consultation Payments are being made
under this Paragraph 1, then those payments shall terminate and future payments, if any, shall be made to Employee’s designated beneficiary(ies) or Employee’s estate in accordance with the provisions of Paragraph 3 of this Agreement.

  
 As used in this Agreement, the term “Retirement
Date” shall mean the last day of the calendar month in which Employee attains the age of sixty-five (65), or such other date prior or subsequent thereto as Employer and Employee shall agree in writing to treat as the “Retirement Date”
for purposes of this Agreement. Employer and Employee hereby acknowledge that compulsory retirement is not enforceable except as provided by law. Employer and Employee further agree that no provision herein shall be construed as requiring
Employee’s retirement except as may now or hereafter be permitted by law. 
  
 2. Non-competition Payments. In the event Employee retires from his employment with Employer on the Retirement Date, Employer shall pay to Employee the sum of Six Thousand Two Hundred Fifty and 00/100
Dollars ($6,250.00) per month, beginning not later 
  

 2 

 than two months after Employee’s Retirement Date, for a period of ten years following Employee’s Retirement
Date or until his death, whichever first occurs. Such monthly payments shall be paid for and in consideration of Employee’s agreement in this Paragraph 2 below (Employee’s “Covenant Not To Compete”). Payments hereunder
(“Non-competition Payments”) shall be payable each month without deductions and Employee agrees to be solely responsible for the payment of all income or other taxes or assessments, if any, applicable on those payments. 
  
 For and in consideration of monthly Non-competition Payments to Employee,
Employee agrees not to become an officer or employee of, provide any consultation to, nor participate in any manner with, any other entity of any type or description involved in any major element of business which Employer is performing at the time
of Employee’s Retirement Date, nor will Employee perform or seek to perform any consultation or other type of work or service with any other firm, person or entity, directly or indirectly, in any such business which competes with Employer,
whether done directly or indirectly, in ownership, consultation, employment or otherwise. Employee agrees not to reveal to outside sources, without the consent of Employer, any matters, the revealing of which could, in any manner, adversely affect
or disclose Employer’s business or any part thereof, unless required by law to do so. This Covenant Not To Compete by Employee is limited to the geographic area consisting of the counties in which Employer shall maintain a banking or other
business office at the time of Employee’s Retirement Date, shall exist for and during the term of all payments to be made under this Paragraph 2, whether made directly by Employer or as otherwise provided herein, and shall not prevent Employee
from purchasing or acquiring, as an investor only, a financial interest of less than 5% in a business or other entity which is in competition with Employer. 
  
 Employee acknowledges that the remedy at law for breach of Employee’s Covenant Not To Compete will be inadequate and that Employer shall be entitled
to injunctive relief as to any violation thereof; however, nothing herein shall be construed as prohibiting Employer from pursuing any other remedies available to it, in addition to injunctive relief, whether at law or in equity, including the
recovery of damages. In the event Employee shall breach any condition of Employee’s Covenant Not To Compete, then Employee’s right to any of the payments becoming due under Paragraphs 1 and 2 of this Agreement after the date of such breach
shall be forever forfeited and the right of Employee’s designated beneficiary(ies) or Employee’s estate to any payments under this Agreement shall likewise be forever forfeited. This forfeiture is in addition to and not in lieu of any of
the above-described remedies of Employer and shall be in addition to any injunctive or other relief as described herein. Employee further acknowledges that any breach of Employee’s Covenant Not To Compete shall be deemed a material breach of
this Agreement. 
  

 3 

 If Employee should die during the ten-year period during which Non-competition Payments are being made
under this Paragraph 2, then those payments shall terminate and future payments, if any, shall be made to Employee’s designated beneficiary(ies) or Employee’s estate in accordance with the provisions of Paragraph 3 of this Agreement.

  
 3. Continuation of Payments. Upon
Employee’s death during the original ten-year period of payments under Paragraphs 1 and 2 above, the sum of Eight Thousand Three Hundred Thirty-Three and 33/100 Dollars ($8,333.33) per month shall be paid to such individual or individuals as
Employee shall have designated in writing as his beneficiary(ies) as provided in Paragraph 11 below or, in the absence of such designation, to Employee’s estate, as applicable, beginning the first calendar month following the date of
Employee’s death and continuing thereafter until the expiration of said original ten-year period. Once the Deferred Compensation/Consultation Payments and Non-competition Payments have begun, whether paid by Employer or as otherwise provided
herein, the maximum payment period under this Agreement shall be ten years. Payments hereunder shall be payable each month without deductions and the recipient shall be solely responsible for the payment of all income and other taxes and
assessments, if any, applicable on those payments. 
  
 4.
Death Benefits. In the event Employee dies while employed by Employer prior to Employee’s Retirement Date, Employer will pay the sum of Eight Thousand Three Hundred Thirty-Three and 33/100 Dollars ($8,333.33) per month for a period
of ten years, to such individual or individuals as Employee shall have designated in writing as his beneficiary(ies) as provided in Paragraph 11 below or, in the absence of such designation, to Employee’s estate, as applicable. The first
payment shall be made not later than two months following Employee’s death. Payments under this Paragraph 4 shall be payable each month without deductions and the recipient shall be solely responsible for the payment of all income and other
taxes and assessments, if any, applicable on those payments. 
  
 5. Forfeiture of Benefits. This Agreement is subject to termination by Employer at any time and without stated cause. In the event Employer shall terminate this Agreement, Employee shall forfeit all rights to receive any
payment provided for herein. Likewise, in the event Employee’s employment is terminated, either voluntarily or involuntarily, for reasons other than retirement on his Retirement Date or his death, Employee shall forfeit all rights to receive
any payment provided for herein. Employee acknowledges and agrees that any benefit provided for herein is merely a contractual benefit and that nothing contained herein shall be construed as conferring upon Employee any vested benefits or any vested
rights to receive any payment provided for herein and that any and all payments provided for herein shall be subject to a substantial risk of forfeiture until such time as said payments are actually made by Employer. 
  

 4 

 6. Claims Procedure. Any claim for benefits under this Agreement shall be made in writing
to Employer. If any claim for benefits under this Agreement is wholly or partially denied, notice of the decision shall be furnished to the claimant within a reasonable period of time, not to exceed 90 days after receipt of the claim by Employer,
unless special circumstances require an extension of time for processing the claim. If such an extension of time is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period.
In no event shall such extension exceed the period of 90 days from the end of such initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date on which the administrator expects to render
a decision. 
  
 Employer shall provide every claimant who is
denied a claim for benefits written notice setting forth, in a manner calculated to be understood by the claimant, the following: (i) specific reasons for the denial; (ii) specific reference to pertinent provisions upon which the denial is based;
(iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the Agreement’s claims review
procedure as set forth below. 
  
 The claimant may appeal the
denial of his claim to Employer for a full and fair review. The claimant or his duly authorized representative may request a review upon written application to Employer, review pertinent documents, and submit issues and comments in writing. A
claimant (or his duly authorized representative) shall request a review by filing a written application for review with Employer or its designee (the “Reviewer”) at any time within 60 days after receipt by the claimant of written notice of
the denial of his claim. 
  
 The decision on review shall be made
by the Reviewer, who may, in its or his discretion, hold a hearing on the denied claim; the Reviewer shall make this decision promptly, and not later than 60 days after Employer receives the request for review, unless special circumstances require
extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than 120 days after receipt of the request for review. If such an extension of time for review is required, written notice of the
extension (including the special circumstances requiring the extension of time) shall be furnished to the claimant prior to the commencement of the extension. In the event that the decision on review is not furnished within the time period set forth
in this paragraph, the claim shall be deemed denied on review. 
  
 The decision on review shall be in writing and shall include reasons for the decision, written in a manner calculated to be understood by the claimant, and specific references to the pertinent provisions in the relevant documents on which
the decision is based. 
  

 5 

 7. Assignment of Rights; Spendthrift Clause. Neither Employee nor Employee’s estate or
any designated beneficiary shall have any right to sell, assign, transfer or otherwise convey the right to receive any payment hereunder. To the extent permitted by law, no benefits payable under this Agreement shall be subject to the claim of any
creditor of Employee or Employee’s estate or any designated beneficiary, or to any legal process by any creditor of any such person. 
  
 8. Unfunded Plan. Employee and Employer do not intend that the amounts payable hereunder be held by Employer in trust or as a segregated
fund for Employee or any other person entitled to payments hereunder. The benefits provided under this Agreement shall be payable solely from the general assets of Employer, and neither Employee nor any other person entitled to payments hereunder
shall have any interest in any assets of Employer by virtue of this Agreement. Employer’s obligation under this Agreement shall be merely that of an unfunded and unsecured promise of Employer to pay money in the future. To the extent that this
Agreement should be deemed to be a “pension plan,” Employee and Employer intend that it be unfunded for federal income tax purposes, as well as for Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). 
  
 9. Payments and
Funding. Any payments under this Agreement shall be independent of, and in addition to, those under any other plan, program or agreement which may be in effect between the parties hereto, or any other compensation payable to Employee
or Employee’s designee by Employer. This Agreement shall not be construed as a contract of employment nor does it restrict the right of Employer to discharge Employee at will or the right of Employee to terminate his employment at will.

  
 Employer may, in its sole discretion, purchase an insurance
policy on the life of Employee to fund or assist in the funding of this Agreement. Employee agrees to promptly supply to Employer and its selected or prospective insurance carrier, upon request, any and all information requested, in order to enable
the insurance carrier to evaluate the risks involved in providing the insurance requested by Employer. Any and all rights to any and all benefits under such insurance policy on the life of Employee shall be solely the property of Employer and all
proceeds of such policy shall be payable by the insurer solely to Employer, as owner of such policy. Employee specifically waives any rights in any insurance policy on Employee’s life owned by Employer pursuant to this Agreement. Such policy
shall not serve in any way as security to Employee for Employer’s performance under this Agreement. The rights accruing to Employee or any designee hereunder shall be solely those of an unsecured creditor of Employer and shall be subordinate to
the rights of the depositors of Employer. 
  
 Employer may, in its
sole discretion, discharge its liabilities under this Agreement to Employee, Employee’s designated beneficiary(ies) or Employee’s estate at any 
  

 6 

 time by the purchase of an annuity from a reputable insurance or similar company authorized to do, and doing, business in
North Carolina and the assignment of the rights under said annuity to the benefit of Employee, Employee’s designated beneficiary(ies) or Employee’s estate. If this option is exercised by Employer, all rights accruing to Employee,
Employee’s designated beneficiary(ies) or Employee’s estate hereunder shall be governed solely by the annuity contract and any election made under said annuity contract; and Employer shall be fully discharged from any further liabilities
to Employee, Employee’s designated beneficiary(ies) or Employee’s estate under this Agreement. 
  
 Employer may, in its sole discretion, discharge its liabilities under this Agreement to Employee, Employee’s designated beneficiary(ies) or
Employee’s estate at any time by determining the present value of the payments due hereunder, said amount to be determined by the use of the U.S. Government bond rate for the nearest year applicable to the time of the payments due hereunder for
the present value computation, and once determined, by payment of said amount in a lump sum to Employee, Employee’s designated beneficiary(ies) or Employee’s estate, as applicable. 
  
 10. Survivor Annuities and QDROs. Nothing contained in this
Agreement is intended to give or shall give any spouse or former spouse of Employee or any other person any right to benefits under this Agreement by virtue of sections 401(a)(11) and 417 of the Internal Revenue Code (relating to qualified
preretirement survivor annuities and qualified joint and survivor annuities) or Internal Revenue Code sections 401(a)(13)(B) and 414(p) (relating to qualified domestic relations orders). 
  
 11. Designation of Beneficiary(ies). In order to designate one or more beneficiaries as described in Paragraph
3 or 4 above, Employee shall file a written designation with Employer in the form attached as Exhibit A this Agreement. Each such designation shall specify, by name(s), the person(s) to whom any amounts payable under this Agreement shall be paid
following Employee’s death. From time to time, Employee may change or revoke a beneficiary designation without the consent of the beneficiary(ies) by filing a new beneficiary designation form with Employer, and the filing of a new designation
form automatically shall revoke any and all designation forms previously filed with Employer. A beneficiary designation form not properly filed with Employer prior to Employee’s death shall be of no force or effect under this Agreement.

  
 Subject to reasonable restrictions imposed by Employer and to
Employer’s right to refuse to accept such a designation for reasons satisfactory to it, Employee may designate more than one beneficiary and/or alternative or contingent beneficiaries, in which case Employee’s designation form shall
specify the relative shares and terms and conditions upon which amounts shall be paid to such multiple or alternative or contingent beneficiaries. 
  

 7 

 If, at the time of Employee’s death, (i) no beneficiary designation is on file with Employer,
(ii) no beneficiary designated by Employee has survived Employee, or (iii) there are other circumstances not covered by the beneficiary designation form on file with Employer, then Employee’s estate conclusively shall be deemed to
be the beneficiary designated to receive any amounts then remaining payable to Employee under this Agreement. 
  
 In making all determinations regarding Employee’s beneficiary, the latest designation form filed by Employee with Employer shall control, and all
changes in circumstances that occur after the filing of that designation shall be ignored. For example, if Employee’s spouse is designated as beneficiary in the latest designation filed by Employee but, thereafter, is divorced from Employee,
such designation shall remain valid until and unless Employee files a later beneficiary designation form with Employer naming a different beneficiary. 
  
 Any check for a payment under this Agreement that is issued on or before the date of Employee’s death shall remain payable to Employee and shall be
handled accordingly, whether or not the check actually is received by Employee prior to death. Any check issued after the date of Employee’s death shall be the property of Employee’s beneficiary(ies) determined in accordance with this
Paragraph 11. 
  
 12. Named Fiduciary and
Administrator. (The purpose of this Paragraph is to comply with ERISA in the event any portion of the Plan is subject to ERISA.) The named fiduciary shall be Employer. The named fiduciary shall have the authority to control and manage the
operation and administration of this Agreement. The administration of this Agreement shall be under the supervision of a director, officer or employee of Employer (hereinafter referred to as the “Administrator”) designated by the Board of
Directors of Employer. It shall be a principal duty of the Administrator to see that this Agreement is carried out in accordance with its terms. 
  
 13. Suicide. In the event Employee commits suicide within two years of the execution of this Agreement, all payments provided for herein to
be paid to Employee’s designated beneficiary or Employee’s estate shall be forfeited. 
  
 14. Binding Effect. This Agreement shall be binding upon Employee, his heirs, personal representatives and assigns, and upon Employer, its
successors and assigns. 
  
 15. Amendment of
Agreement. This Agreement may not be altered, amended or revoked except by a written agreement signed by Employer and Employee. 
  
 16. Interpretation. Where appropriate in this Agreement, words used in the singular shall include the plural and words used in the masculine
shall include the feminine. 
  
 17. Invalid
Provision. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision
were not contained herein. 
  

 8 

 18. Governing Law. This Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of North Carolina. 
  
 19.
Termination of Prior Agreement. This Agreement replaces in its entirety that certain
                         Agreement dated as of
                            , by and between Employer and Employee, together with all amendments
thereto (the “Prior Agreement”). The Prior Agreement is hereby terminated, and shall have no further force or effect. 
  
 IN TESTIMONY WHEREOF, Employer has caused this Agreement to be executed in its corporate name by its President, and attested by its
Secretary/Assistant Secretary, all by the authority of its Board of Directors duly given, and Employee has hereunto set his hand and adopted as his seal the typewritten word “SEAL” appearing beside his name, as of the day and year first
above written. 
  
  

					
	THE FIDELITY BANK	 	 
			
	 By:
	 	 /s/ Billy T. Woodard

	 	 

  
 ATTEST: 
  

	
	 /s/ Betty K. Hedgepath

	 Secretary

  

					
	 	 	 /s/ David E. Royal

	 	 (SEAL)

	 	 	 David E. Royal
	 	 

  

 9Exhibit 4.1

 Exhibit 4.1 
  
 EXECUTION COPY 

  
 MBNA CREDIT CARD MASTER NOTE TRUST 
  

as Issuer 
  
 CLASS B(2004-2) TERMS DOCUMENT 
  
 dated as of August 11, 2004 
  
 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	  	6
			
	 Section 1.04.
	  	Ratification of Indenture and Indenture Supplement	  	6
			
	 	  	ARTICLE II	  	 
			
	 	  	The Class B(2004-2) 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	  	8
			
	 Section 2.04.
	  	Calculation Agent; Determination of LIBOR	  	8
			
	 Section 2.05.
	  	Payments of Interest and Principal	  	9
			
	 Section 2.06.
	  	Form of Delivery of Class B(2004-2) Notes; Depository; Denominations	  	10
			
	 Section 2.07.
	  	Delivery and Payment for the Class B(2004-2) Notes	  	10
			
	 Section 2.08.
	  	Targeted Deposits to the Accumulation Reserve Account	  	10
			
	 	  	ARTICLE III	  	 
			
	 	  	Representations and Warranties	  	 
			
	 Section 3.01
	  	Issuer’s Representations and Warranties	  	11

  

 -i- 

 THIS CLASS B(2004-2) 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 August 11, 2004. 
  
 Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall create a new tranche of Class B 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 B(2004-2) 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 B(2004-2) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the Monthly Period
following the first Transfer Date following and including the June 2009 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 December 2009 Transfer Date for which the Quarterly Excess Available Funds
Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 18 months prior to the Expected Principal Payment Date, and (iv) the Monthly Period following the first Transfer
Date following and including the February 2010 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 B(2004-2) Notes and (ii) the
date on which the Class B(2004-2) 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 B(2004-2) Note” means any Note, substantially in the form set forth in Exhibit A-2 to the
Indenture Supplement, designated therein as a Class B(2004-2) Note and duly executed and authenticated in accordance with the Indenture. 
  
 “Class B(2004-2) Noteholder” means a Person in whose name a Class B(2004-2) Note is registered in the Note Register. 
  
 “Class B(2004-2) Termination Date” means the earliest to
occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class B(2004-2) 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 B Required
Subordinated Amount of Class C Notes” is defined in Section 2.02(b). 
  

 2 

 “Controlled Accumulation Amount” means $12,500,000; provided, however, if
the Accumulation Period Length is determined to be less than twelve (12) months pursuant to Section 3.10(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount shall be the amount specified in the definition of
“Controlled Accumulation Amount” in the Indenture Supplement. 
  
 “Excess Available Funds Percentage” means, with respect to any Transfer Date, the amount, if any, by which the Portfolio Yield for the preceding Monthly Period exceeds the Base Rate for such Monthly Period. 
  
 “Expected Principal Payment Date” means July 15, 2011.

  
 “Initial Dollar Principal Amount” means
$150,000,000. 
  
 “Interest Payment Date” means
the fifteenth day of each month commencing September 15, 2004, 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 August 11, 2004. 
  
 “Legal Maturity Date” means December 16, 2013. 
  

“LIBOR” means, for any Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by
the Indenture Trustee on the LIBOR Determination Date for each Interest Period in accordance with the provisions of Section 2.04. 
  
 “LIBOR Determination Date” means August 9, 2004 for the period from and including the Issuance Date to but excluding September 15, 2004
and for each Interest Period thereafter, the second London Business Day prior to the Interest Payment Date on which such Interest Period commences. 
  
 “London Business Day” means any Business Day on which dealings in deposits in United States Dollars are transacted in the London
interbank market. 
  
 “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. 
  

 3 

 “Note Interest Rate” means a per annum rate equal to 0.39% in excess of LIBOR as
determined by the Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period. 
  
 “Paying Agent” means The Bank of New York. 
  
 “Portfolio Yield” means, with respect to any Monthly Period, the annualized percentage equivalent of a fraction, the numerator of which
is (a) the amount of Available Funds allocated to the 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 June 2009 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 B(2004-2) 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. 
  

 4 

 “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 $150,000,000. 
  
 “Telerate Page 3750” means the display page currently so
designated on the Moneyline Telerate Service (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices). 
  
 “Weighted Average Interest Rates” means, with respect to any Outstanding Notes of a class or tranche of the
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 

  

 5 

 
by applicable law, have the same legal force and effect as if served upon such party personally within the State of Delaware. 
  
 Section 1.03. Counterparts. This Terms Document may be executed in any
number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
  
 Section 1.04. Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the
Indenture and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Indenture Supplement as so supplemented and this Terms Document shall be read, taken and construed as one and the same
instrument. 
  
 [END OF ARTICLE I] 
  

 6 

 ARTICLE II 
  
 The Class B(2004-2) Notes 
  
 Section 2.01 Creation and Designation. There is hereby created a tranche of MBNAseries Class B Notes to be issued pursuant to the Indenture and the
MBNAseries Indenture Supplement to be known as the “MBNAseries Class B(2004-2) Notes.” 
  
 Section 2.02 Specification of Required Subordinated Amount and other Terms. 
  
 (a) Notwithstanding any provision of Section 2.03 of the Indenture Supplement to the contrary, on any date of
determination, the available subordinated amount of Class C Notes for the Class B(2004-2) Notes shall be at least equal to the Class B Required Subordinated Amount of Class C Notes for the Class B(2004-2) Notes. For purposes of this clause, the
available subordinated amount of Class C Notes for the Class B(2004-2) Notes as of any date will be an amount equal to, after giving effect to any issuances, deposits, allocations, reallocations or payments to be made on that date: 
  
 (i) the aggregate Nominal Liquidation Amount of all tranches
of Class C Notes which are Outstanding on that date; minus 
  
 (ii) the sum of (A) the aggregate Class B Required Subordinated Amount of Class C Notes for all other tranches of Class B Notes which are Outstanding on that date plus (B) the aggregate Class A Required
Subordinated Amount of Class C Notes for all tranches of Class A Notes for which the Class A Required Subordinated Amount of Class B Notes is equal to zero which are Outstanding on that date. 
  
 (b) (i) For the Class B(2004-2) Notes for any date of
determination, the Class B Required Subordinated Amount of Class C Notes will be an amount equal to the product of (A) the Adjusted Outstanding Dollar Principal Amount of the Class B(2004-2) Notes on such date, times (B) the sum of:

  
 (x) a fraction, the numerator of which is the
aggregate Class A Required Subordinated Amount of Class C Notes for all tranches of Class A Notes which are Outstanding on that date, for which the Class A Required Subordinated Amount of Class B Notes is greater than zero and the denominator of
which is the aggregate Adjusted Outstanding Dollar Principal Amount for all tranches of Class B Notes (including the Class B(2004-2) Notes) which are Outstanding on that date; plus 
  
 (y) the product of: 
  
 (1) 8.10811%; times 
  
 (2) a fraction, the numerator of which is the aggregate
Adjusted Outstanding Dollar Principal Amount for all tranches of Class B Notes (including the Class B(2004-2) Notes) which are Outstanding on that date minus the aggregate Class A Required Subordinated Amount of 
  

 7 

 Class B Notes for all tranches of Class A Notes which are Outstanding on that date, and the denominator
of which is the aggregate Adjusted Outstanding Dollar Principal Amount for all tranches of Class B Notes (including the Class B(2004-2) Notes) which are Outstanding on that date. 
  
 (ii) If an Early Redemption Event with respect to the Class B(2004-2) Notes shall have occurred, if an Event
of Default and acceleration of the Class B(2004-2) Notes shall have occurred or if the Class B Usage of the Class C Required Subordinated Amount for the Class B(2004-2) Notes is greater than zero, on any date of determination following any such
event, the Class B Required Subordinated Amount of Class C Notes for the Class B(2004-2) Notes shall be the greater of (i) the amount determined pursuant to subsection 2.02(b)(i) on such date of determination and (ii) the amount determined
pursuant to subsection 2.02(b)(i) 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 B Usage of Class C Required
Subordinated Amount exceeded zero. 
  
 (c) The Issuer may change
the definition of the Class B Required Subordinated Amount of Class C Notes with respect to the Class B(2004-2) Notes 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 such definition will not result in a Ratings Effect with respect to any Outstanding Class B(2004-2) Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a
Master Trust Tax Opinion and an Issuer Tax Opinion with respect to such change. 
  
 Section 2.03. Interest Payment. 
  
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class B(2004-2) 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 B(2004-2) Notes determined as
of the Record Date preceding the related Transfer Date. Interest on the Class B(2004-2) Notes will be calculated on the basis of the actual number of days in the related Interest Period and a 360-day year. 
  
 (b) Pursuant to Section 3.03 of the Indenture Supplement, on each
Transfer Date, the Indenture Trustee shall deposit into the Class B(2004-2) Interest Funding sub-Account the portion of MBNAseries Available Funds allocable to the Class B(2004-2) Notes. 
  
 Section 2.04. Calculation Agent; Determination of LIBOR. 
  
 (a) The Issuer hereby agrees that for so long as any Class B(2004-2) 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 
  

 8 

 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
B(2004-2) 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 B(2004-2)
Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received by the Paying Agent from such Person not
later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on
such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee.

  

 9 

 (b) The right of the Class B(2004-2) Noteholders to receive payments from the Issuer will terminate on
the first Business Day following the Class B(2004-2) Termination Date. 
  
 Section 2.06. Form of Delivery of Class B(2004-2) Notes; Depository; Denominations. 
  
 (a) The Class B(2004-2) 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
B(2004-2) Notes shall be The Depository Trust Company, and the Class B(2004-2) Notes shall initially be registered in the name of Cede & Co., its nominee. 
  

(c) The Class B(2004-2) 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 B(2004-2) Notes. The
Issuer shall execute and deliver the Class B(2004-2) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class B(2004-2) 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] 
  

 10 

 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. 
  

 11 

 (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] 
  

 12 

 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/ Kevin F. Sweeney

	 	 	Kevin F. Sweeney
	 	 	First Vice President
	
	THE BANK OF NEW YORK, as Indenture Trustee and not in its individual capacity
		
	By:	 	 /s/ Jonathan Farber

	Name:	 	Jonathan Farber
	Title:	 	Assistant Treasurer

  
 [Signature Page
to the Class B(2004-2) Terms Document]

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