Document:

Units Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
  

 UNITS PURCHASE AGREEMENT 
 by and among 
 PENN VIRGINIA RESOURCE PARTNERS, L.P. 
 AND 
 PENN VIRGINIA GP HOLDINGS, L.P. 
 Dated December 4, 2006 
  

 UNITS PURCHASE AGREEMENT 
 THIS UNITS PURCHASE AGREEMENT, dated December 4, 2006 (this “Agreement”), is made by Penn Virginia Resource Partners, L.P., a
Delaware limited partnership (the “Seller” or “Partnership”), on the one hand, and Penn Virginia GP Holdings, L.P., a Delaware limited partnership (referred to herein as “Purchaser”), on the other
hand. 
 WHEREAS, the Purchaser intends to make an initial public offering of its common units (the “Offering”) and enter
into an underwriting agreement dated the date hereof (the “Underwriting Agreement”) with the underwriters named therein (the “Underwriters”). 
 WHEREAS, in connection with the Offering, the Seller desires to issue and sell to the Purchaser, and the Purchaser desires to purchase, limited partner
interests of the Partnership, consisting of Common Units (as defined in the Partnership Agreement and referred to herein as the “Common Units”) and Class B Units (the “Class B Units” and, together with the Common
Units, the “Purchased Units”), having the characteristics set forth in the First Amended and Restated Agreement of Limited Partnership dated as of October 30, 2001, as amended as of December 19, 2002, March 19,
2003, December 8, 2003 and December 8, 2006 (as so amended, the “Partnership Agreement”), of the Partnership, a copy of which is attached hereto as Exhibit A. 
 WHEREAS, in the event that the Underwriters exercise all or any portion of the over-allotment option pursuant to the Underwriting Agreement, the Seller
desires to issue and sell to the Purchaser, and the Purchaser desires to purchase, additional limited partner interests of the Partnership, consisting of additional Class B Units (the “Additional Class B Units”). 
 NOW, THEREFORE, in consideration of the premises, warranties, covenants and agreements contained herein, the parties agree as follows: 
 1. Purchase and Sale. 
 (a) Subject to
the terms and conditions of this Agreement, the Seller shall issue and sell to the Purchaser, and the Purchaser shall purchase from the Seller, 416,444 Common Units (the “Purchased Common Units”) and 3,610,383 Class B Units (the
“Purchased Class B Units”) for an aggregate purchase price of $102,482,747.15, as more specifically set forth in Section 3(b) hereof (the aggregate price for the Purchased Units, the “Purchase Price”), upon the
terms set forth in this Agreement (such transaction, the “Purchase”). 
 (b) In the event that the Underwriters exercise all
or any of the Over-Allotment Option, and subject to the terms and conditions of this Agreement, the Purchaser shall use all of the net proceeds of any such exercise of the Over-Allotment Option to purchase Additional Class B Units at a price per
Additional Class B Unit equal to the price per unit of the Purchased Units (the aggregate price for the Additional Class B Units, the “Additional Purchase Price”) and the Seller shall issue and sell to the Purchaser such Additional
Class B Units (the “Additional Purchased Units”) (such transaction, the “Additional Purchase”). 
 (c) The
sale of the Purchased Units and the Additional Purchased Units contemplated hereby shall not be registered with the Securities and Exchange Commission (the 

 
“Commission”) under the Securities Act of 1933, as amended (the “Act”) and the certificates representing such Purchased
Units and Additional Purchased Units shall be issued bearing a restrictive legend thereon, in substantially the form set forth in Section 6(j) hereof. 
 2. Conditions Precedent to the Purchase and Additional Purchase. 
 (a) The obligations of the
Purchaser to complete its Purchase on the Closing Date and to complete its Additional Purchase on the Additional Closing Date are subject to the accuracy of the representations and warranties of the Seller contained in Section 5 hereof on the
date hereof and on the Closing Date, in the case of the Purchase, and on the Additional Closing Date, in the case of the Additional Purchase. 
 (b) The obligations of the Seller to sell the Purchased Units on the Closing Date and to sell the Additional Purchased Units on the Additional Closing Date pursuant to this Agreement are subject to the accuracy of the representations and
warranties of the Purchaser contained in Section 6 hereof on the date hereof and on the Closing Date, in the case of the Purchase, and on the Additional Closing Date, in the case of the Additional Purchase. 
 (c) The obligations of the Purchaser to complete its Purchase and the obligations of the Seller to sell the Purchased Units pursuant to this Agreement
are subject to the closing of the Offering. 
 (d) The obligations of the Purchaser to complete its Additional Purchase and the obligations
of the Seller to sell the Additional Purchased Units pursuant to this Agreement are subject to the exercise by the Underwriters of all or any portion of the Over-Allotment Option. 
 3. Closing and Delivery of Purchased Units. 
 (a) The closing of the transactions constituting the purchase and sale of the Purchased Units (the “Closing”) shall take place at the offices of Vinson & Elkins, L.L.P., 666 Fifth Avenue, New York, New York, at
9:00 a.m. New York Time on December 8, 2006, or such other date, place and time as the Seller and the Purchaser may agree (the “Closing Date”). 
 (b) The Purchased Units to be sold to the Purchaser under this Agreement shall be delivered by or on behalf of the Seller to the Purchaser at the Closing in certificated form against payment of the Purchase Price
thereof, said payment to be made by wire transfer of $102,482,747.15 United States dollars in immediately available funds to such bank account of the Seller designated by the Seller in writing no later than the Business Day immediately preceding the
Closing Date (which amount is equal to the sum of the Volume Weighted Average Market Price per Common Unit for the ten Trading Days ended December 4, 2006 (the date of pricing of the Offering) multiplied by the aggregate number of
Purchased Units). 
 (c) “Trading Days” means (i) if the Common Units are listed or admitted for trading on the New
York Stock Exchange or any other national securities exchange, days on which such national securities exchange is open for business or (ii) if the Common Units are not listed or admitted for trading on any national securities exchange, days on
which trades may be made on The Nasdaq National Market or any similar system of automated dissemination of 

  

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quotations of securities prices on which the Common Units are quoted or (iii) if the Common Units are not listed or admitted to trading on any national
securities exchange or quoted on such National Market or similar system, days on which the Common Units are traded regular way in the over-the-counter market and for which a closing bid and a closing asked price for the Common Units are available.

 (d) “Volume-Weighted Average Trading Price” means, for any specified period of consecutive Trading Days for the Common
Units, an amount equal to (i) the cumulative sum of the products of (x) the sale price for each trade of Common Units occurring during such period times (y) the number of shares of Common Units sold at such price, divided by
(ii) the total number of shares of Common Units so traded during such period. 
 4. Closing and Delivery of Additional Purchased
Units.  
 (a) The closing of the transactions constituting the purchase and sale of the Additional Purchased Units (the
“Additional Closing”) shall occur at the place specified in Section 3(a) hereof at 9:00 a.m. New York Time on the date the Additional Purchased Units are delivered (the “Additional Closing Date”). 

(b) The Additional Purchased Units to be sold to the Purchaser under this Agreement shall be delivered by or on behalf of the Seller to the Purchaser
at the Additional Closing in certificated form against payment of the Additional Purchase Price thereof, said payment to be made by wire transfer in immediately available funds to such bank account of the Seller designated by the Seller in writing
no later than the Business Day immediately preceding the Additional Closing Date. 
 5. Representations and Warranties of Seller. The
Seller represents and warrants to the Purchaser that: 
 (a) The Seller is an entity duly organized and validly existing under the laws of the
state of Delaware and has the requisite power and authority, and has taken all actions necessary, to execute, deliver and perform its obligations under this Agreement. This Agreement is a valid and binding obligation of the Seller, enforceable
against the Seller in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and to general equity principles. The execution
and delivery of this Agreement, the compliance by the Seller with all the provisions of, and the performance by the Seller of its obligations under, this Agreement, and the consummation of the transactions contemplated in this Agreement will not
conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, (i) the constitutive documents of the Seller, (ii) any instrument, contract or other agreement to which the Seller is a
party or by which the Seller is bound or to which any of its properties or assets may be bound or subject, in each case, the breach or violation of which or default under which would be reasonably expected to have a material adverse effect on the
ability of the Seller to comply with its obligations hereunder, or (iii) any law or statute or any order, rule or regulation of any court or governmental agency or body or any stock exchange authority or self regulatory organization (each, a
“Governmental Authority”), in each case having jurisdiction over the Seller or any of its subsidiaries or any of their properties; and, other than the listing of the Purchased 

  

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Common Units and the Common Units into which the Purchased Class B Units and the Additional Purchased Units convert with the New York Stock Exchange, no
consent, approval, authorization, order, registration, clearance or qualification or notification of, with or to any Governmental Authority is required for the sale and delivery of the Purchased Units or the Additional Purchased Units being sold by
the Seller to such Purchaser under this Agreement. 
 (b) The Purchaser, when such Purchased Units and any Additional Purchased Units are
issued and delivered as provided in this Agreement, will be entitled to the rights of a unitholder of limited partner interests of the Seller as conferred by the Partnership Agreement of the Seller and applicable law. 
 (c) Neither the Purchased Units nor the Additional Purchased Units are subject to any conflicting sale, transfer, assignment, or any agreement (other
than this Agreement) to assign, convey, or transfer, in whole or in part, any of the Purchased Units or the Additional Purchased Units, and upon consummation of the Purchase and the Additional Purchase, the Purchaser will receive valid title to the
Purchased Units and the Additional Purchase Units, as the case may be, free and clear of any encumbrance, liens, claims, charges, security interests, or other interests of others. 
 (d) There are no legal or governmental proceedings pending to which the Seller is a party or of which any property of the Seller is the subject that, if
determined adversely to the Seller, would individually or in the aggregate have a material adverse effect on the Seller’s ability to perform its obligations under this Agreement, and, to the best of the Seller’s knowledge, no such
proceedings are threatened or contemplated by any such Governmental Authority or threatened by others. 
 (e) The documents filed by the
Seller with the Commission within the 18 months prior to the date of this Agreement, when they were filed with the Commission, conformed in all material respects to the requirements of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and the rules and regulations thereunder, and none of such documents contained any untrue statement of material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein not misleading. 
 (f) Except as disclosed in the documents filed by the Seller under the Exchange Act, since the date of
the Seller’s most recent Current Report on Form 8-K (to the extent it contains financial results and balance sheet information) or Quarterly Report on Form 10-Q filing with the Commission, the Seller and its subsidiaries have conducted their
respective businesses in the ordinary course, consistent with past practice, and there has been no change, event, occurrence, fact, circumstance or condition that has had or would be reasonably likely to have a material adverse effect on the assets,
liabilities, financial condition, business, operations or affairs of the Seller and its subsidiaries, taken as a whole. 
 6.
Representations, Warranties and Covenants of the Purchaser. The Purchaser represents, warrants and covenants to the Seller that: 
 (a)
The Purchaser is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and has all the requisite right, power 

  

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and authority, and has taken all actions necessary, to execute, deliver and perform its obligations under this Agreement. This Agreement is a legal, valid
and binding obligation of the Purchaser, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and to general
equity principles. The execution and delivery of this Agreement by the Purchaser, the compliance by the Purchaser with all of the provisions of, and the performance by the Purchaser of its obligations under, this Agreement and the consummation of
the transactions contemplated in this Agreement will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, (i) the constitutive documents of the Purchaser, (ii) any
instrument, contract or other agreement to which the Purchaser is a party or by which the Purchaser is bound or to which any of its properties or assets may be bound or subject, in each case, the breach or violation of which or default under which
would be reasonably expected to have a material adverse effect on the ability of the Purchaser to comply with its obligations hereunder, or (iii) any law or statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over the Purchaser or any of its subsidiaries or any of their properties and no consent, approval, authorization, order, registration, clearance or qualification or notification of, with or to any such Governmental Authority is required
of the Purchaser for the purchase of the Purchased Units and the Additional Purchased Units by the Purchaser under this Agreement. 
 (b)
There are no legal or governmental proceedings pending to which the Purchaser is a party or of which any property of the Purchaser is the subject that, if determined adversely to the Purchaser, would individually or in the aggregate have a material
adverse effect on the Purchaser’s ability to perform its obligations under this Agreement, and, to the best of the Purchaser’s knowledge, no such proceedings are threatened or contemplated by any such Governmental Authority or threatened
by others. 
 (c) No fees or commissions are or will be payable by the Purchaser to brokers, finders, or investment bankers with respect to
the purchase of the Purchased Units or the Additional Purchased Units or the consummation of the transactions contemplated by this Agreement. The Purchaser agrees that it will indemnify and hold harmless the Seller from and against any and all
claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by the Purchaser or alleged to have been incurred by the Purchaser in connection with the purchase of the Purchased Units, the
Additional Purchased Units or the consummation of the transactions contemplated by this Agreement. 
 (d) There are no other agreements by,
among or between the Purchaser and any of its affiliates, on the one hand, and the Seller or any of its affiliates, on the other hand, with respect to the transactions contemplated hereby nor promises or inducements for future transactions between
or among any of such parties. 
 (e) The Purchaser is an “accredited investor” as defined in Rule 501(a) of Regulation D
promulgated under the Act. 
 (f) The Purchaser is acquiring the Purchased Units and the Additional Purchased Units for its own account, and
not with a view to any distribution, resale, subdivision, or fractionalization thereof in violation of the Securities Act or any other applicable domestic or 

  

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foreign securities law, and the Purchaser has no present plans to enter into any contract, undertaking, agreement or arrangement for any such distribution,
resale, subdivision, or fractionalization of the Purchased Units or the Additional Purchased Units. 
 (g) The Purchaser has carefully
reviewed the documents filed by the Seller with the Commission under the Exchange Act within the 18 months prior to the date of this Agreement, including Seller’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K and other filings (the “Partnership Information”) and acknowledges that the Seller has provided to the Purchaser or its representatives all agreements, documents, records and books that the Purchaser or its representatives
have requested relating to an investment in the Seller. 
 (h) The Purchaser is able to bear the economic risk of losing its entire
investment in the Purchased Units and the Additional Purchased Units. The Purchaser has knowledge and experience in financial and business matters that it is capable of evaluating the risks and merits of this investment. 
 (i) The Purchaser acknowledges and agrees that, based in part upon its representations contained herein and in reliance upon applicable exemptions, the
purchase and sale of the Purchased Units and the Additional Purchased Units has not been registered under the Act or the securities laws of any other domestic or foreign jurisdiction. Accordingly, the Purchased Units and the Additional Purchased
Units may not be offered for sale, sold, or otherwise transferred in whole or in part except in accordance with the terms of the Partnership Agreement and in compliance with all applicable laws, including securities laws, except that the Purchased
Units and Additional Purchased Units may be pledged in a bona fide transaction. 
 (j) It is understood that any certificates evidencing the
Purchased Units and the Additional Purchased Units will bear a legend in substantially the form set forth below: 
 THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT UNDER SUCH ACT WITH RESPECT TO THE SECURITIES OR AN OPINION OF COUNSEL
SATISFACTORY TO THE PARTNERSHIP THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT. THESE SECURITIES ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN A UNITS PURCHASE AGREEMENT DATED AS OF DECEMBER 4,
2006 AND THE FIRST AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF PENN VIRGINIA RESOURCE PARTNERS, L.P., AS AMENDED FROM TIME TO TIME, COPIES OF WHICH MAY BE OBTAINED FROM THE PARTNERSHIP AT ITS PRINCIPAL EXECUTIVE OFFICE. 
 (k) The Purchaser hereby agrees to vote (or cause to be voted) all of the Common Units and Subordinated Units (each as defined in the Partnership
Agreement) representing limited partner interests in the Seller that the Purchaser owns at any annual, special 

  

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or other meeting of the unitholders of the Seller, and at any adjournment or adjournments thereof, or pursuant to any consent in lieu of a meeting or
otherwise, in favor of the approval of a proposal to change the terms of the Class B Units to provide that each Class B Unit will automatically convert into one Common Unit and any actions required in furtherance thereof. 
 7. Other Agreements. Seller hereby agrees to prepare and cause to be filed as promptly as practicable following the issuance of any Class B units,
a proxy statement providing for the submission for approval of the holders of the Seller’s Common Units a proposal to convert the Class B Units to Common Units on a one-for-one basis. 
 8. Information. The Purchaser shall supply such information with respect to itself, its directors, officers and unitholders as the Seller may
reasonably request for the purpose of preparation of the Proxy. The Seller shall supply to the Purchaser such information with respect to itself, its directors, officers and unitholders and such other matters as the Purchaser may reasonably request
for the purpose of preparation of any notice, form or other documents required to be filed with any Governmental Authority. 
 9. Further
Assurances. Each party agrees to execute, acknowledge and deliver such further instruments and to do all such other acts as may be necessary or appropriate to carry out the purposes and intent of this Agreement. 
 10. Costs and Expenses. Each party to this Agreement shall be responsible for such party’s own expenses in connection with this Agreement.

 11. Notices. All statements, requests, notices and agreements hereunder shall be in writing, and shall be delivered or sent by mail
or facsimile transmission to the address or facsimile number set forth below: 
  

	 	(a)	to the Seller, at: 

 Penn Virginia Resource
Partners, L.P. 
 Three Radnor Corporate Center 
 100 Matsonford Road, Suite 300 
 Radnor, Pennsylvania 19087 
 Facsimile: (610) 687-3688 
 Attention: General Counsel 
  

	 	(b)	to the Purchaser, at: 

 Penn Virginia GP
Holdings, L.P. 
 Three Radnor Corporate Center 
 100 Matsonford Road, Suite 300 
 Radnor, Pennsylvania 19087 
 Facsimile: (610) 687-3688 
 Attention: General Counsel 
 or to such other
address or facsimile number as is notified in writing by that party to the other parties. 
  

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 12. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
 13. Entire Agreement. This Agreement shall constitute
the binding agreement of the parties with respect to the subject matter hereof and shall constitute the entire agreement of the parties with respect to the subject matter hereof. 
 14. Counterparts. This Agreement may be executed by the parties hereto in any number of counterparts, each of which shall be deemed to be an
original, but all such respective counterparts shall together constitute one and the same instrument. 
 [Signature page
follows] 
  

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

					
	PENN VIRGINIA RESOURCE PARTNERS, L.P.
		
	By:	 	Penn Virginia Resource GP, LLC,
		 	its general partner
			
		 	By:	 	 /s/ Nancy M. Snyder

		 	Name:	 	Nancy M. Snyder
		 	Title:	 	Vice President
	
	PENN VIRGINIA GP HOLDINGS, L.P.
		
	By:	 	PVG GP, LLC, its general partner
			
		 	By:	 	 /s/ Nancy M. Snyder

		 	Name:	 	Nancy M. Snyder
		 	Title:	 	Vice President

  

 UNITS PURCHASE AGREEMENT 
 SIGNATURE PAGE 

 EXHIBIT A 
 Partnership Agreement of Penn Virginia Resource Partners, L.P. 
  

 A-1Form of Indenture Supplement, including form of Notes

 EXHIBIT 4.2 
 FORM OF INDENTURE SUPPLEMENT 

 WILMINGTON TRUST
COMPANY, AS OWNER TRUSTEE OF THE 
 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I 
 Issuer 
 and 
 U.S. BANK NATIONAL ASSOCIATION 
 Indenture
Trustee and Securities Intermediary 
 SERIES 2006-[    ] INDENTURE SUPPLEMENT 
 Dated as of                     , 2006

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I	  	CREATION OF THE SERIES 2006-[    ] NOTES	  	1
			
	 Section 1.01
	  	 Designation
	  	1
			
	ARTICLE II	  	DEFINITIONS	  	3
			
	 Section 2.01
	  	 Definitions
	  	3
			
	ARTICLE III	  	SERVICING FEE AND INTERCHANGE	  	16
			
	 Section 3.01
	  	 Servicing Compensation; Interchange
	  	16
			
	ARTICLE IV	  	RIGHTS OF SERIES 2006-[    ] NOTEHOLDERS AND ALLOCATION AND APPLICATION OF COLLECTIONS	  	17
			
	 Section 4.01
	  	 Collections and Allocations
	  	17
	 Section 4.02
	  	 Determination of Monthly Interest
	  	19
	 Section 4.03
	  	 Determination of Monthly Principal
	  	20
	 Section 4.04
	  	 Application of Available Funds on Deposit in the Collection Account
	  	20
	 Section 4.05
	  	 Investor Charge-offs
	  	24
	 Section 4.06
	  	 Subordinated Principal Collections
	  	24
	 Section 4.07
	  	 Excess Finance Charge and Administrative Collections
	  	24
	 Section 4.08
	  	 Shared Principal Collections
	  	24
	 Section 4.09
	  	 [Reserved]
	  	25
	 Section 4.10
	  	 Principal Funding Account
	  	25
	 Section 4.11
	  	 Reserve Account
	  	26
	 Section 4.12
	  	 Determination of LIBOR
	  	28
	 Section 4.13
	  	 Investment Instructions
	  	29
	 Section 4.14
	  	 Exchange of Notes for Transferor Amount
	  	29
			
	ARTICLE V	  	DELIVERY OF SERIES 2006-[    ] NOTES; DISTRIBUTIONS; REPORTS TO SERIES 2006-[    ] NOTEHOLDERS	  	30
			
	 Section 5.01
	  	 Delivery and Payment for the Series 2006-[    ] Notes
	  	30
	 Section 5.02
	  	 Distributions
	  	30
	 Section 5.03
	  	 Reports and Statements to Series 2006-[    ] Noteholders
	  	31
			
	ARTICLE VI	  	SERIES 2006-[    ] AMORTIZATION EVENTS	  	32
			
	 Section 6.01
	  	 Series 2006-[    ] Amortization Events
	  	32
			
	ARTICLE VII	  	REDEMPTION OF SERIES 2006-[    ] NOTES; SERIES FINAL MATURITY; FINAL DISTRIBUTIONS	  	34
			
	 Section 7.01
	  	 Optional Redemption of Series 2006-[    ] Notes
	  	34
	 Section 7.02
	  	 Series Final Maturity
	  	34

					
	ARTICLE VIII	  	MISCELLANEOUS PROVISIONS	  	36
			
	 Section 8.01
	  	 Ratification of Indenture
	  	36
	 Section 8.02
	  	 Counterparts
	  	36
	 Section 8.03
	  	 GOVERNING LAW
	  	36
	 Section 8.04
	  	 Transfer of the O/C Amount
	  	36
	 Section 8.05
	  	 Transfer Restrictions
	  	36
	 Section 8.06
	  	 Certain Commercial Law Representations and Warranties
	  	36

 EXHIBITS 
  

			
	EXHIBIT A-1	  	FORM OF CLASS A NOTE
		
	EXHIBIT A-2	  	FORM OF CLASS B NOTE
		
	EXHIBIT A-3	  	FORM OF CLASS C NOTE
		
	EXHIBIT B	  	FORM OF MONTHLY STATEMENT
		
	EXHIBIT C	  	FORM OF MONTHLY SERVICER’S CERTIFICATE

  

 ii 

 SERIES 2006-[    ] INDENTURE SUPPLEMENT, dated as of
                    , 2006 (the “Indenture Supplement”), between WILMINGTON TRUST COMPANY, not in its individual
capacity, but solely as Owner Trustee of the HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I, a common law trust existing under the laws of the State of Delaware (herein, the “Issuer” or the
“Trust”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, not in its individual capacity, but solely as the Indenture Trustee (herein, together with its successors in the trusts created under the Indenture
referred to below, the “Indenture Trustee”) and the Securities Intermediary under the Amended and Restated Master Indenture, dated as of August 11, 2006 (the “Indenture”), between the Issuer and the Indenture
Trustee (the Indenture, together with this Indenture Supplement, the “Agreement”). 
 The Transferor may direct the Owner Trustee,
on behalf of the Issuer, to issue one or more Series of Notes in accordance with Section 2.12 of the Indenture. The Transferor has tendered the notice of issuance required by Section 2.12(b)(i) of the Indenture and has directed the Owner
Trustee, on behalf of the Issuer, to enter into this Indenture Supplement with the Indenture Trustee as required by Section 10.03 to provide for the issuance, authentication and delivery of the Class A Notes, Series
2006-[    ], the issuance, authentication and delivery of the Class B Notes, Series 2006-[    ], and the issuance, authentication and delivery of the Class C Notes, Series 2006-[    ] and
to specify the Principal Terms thereof. The Principal Terms of this Series are set forth in this Indenture Supplement to the Indenture. 
 ARTICLE I 
 CREATION OF THE SERIES 2006-[    ] NOTES 
 Section 1.01 Designation. 
 (a)
There is hereby created a Series of Notes to be issued pursuant to the Indenture and this Indenture Supplement to be known as “HSBC Private Label Credit Card Master Note Trust (USA) I, Series 2006-[    ]”
or the “Series 2006-[    ] Notes.” The Series 2006-[    ] Notes shall be issued in three Classes, the first of which shall be known as the “Class A Series
2006-[    ] Floating Rate Asset Backed Notes”, the second of which shall be known as the “Class B Series 2006-[    ] Floating Rate Asset Backed Notes”, and the third of
which shall be known as the “Class C Series 2006-[    ] Floating Rate Asset Backed Notes”. The Series 2006-[    ] Notes shall be due and payable on the Series
2006-[    ] Final Maturity Date. 
 (b) Series 2006-[    ] shall be a Pool One Series and shall be in
Principal Sharing Group One and Excess Finance Charge Sharing Group One, and shall not be in a Reallocation Group, Shared Enhancement Group or be allocated Shared Transferor Principal Collections. Series 2006-[    ] shall not be
subordinated to any other Series. Notwithstanding any provision in the Indenture or in this Indenture Supplement to the contrary, the first Distribution Date with respect to Series 2006-[    ] shall be the
                    Distribution Date, and the first Due Period shall begin on and include
                    ,        and end on and include
                    ,        . 
 (c) 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, the terms and provisions of this Indenture Supplement shall be controlling. All capitalized terms not otherwise defined 

 herein are defined in the Indenture, the Transfer and Servicing Agreement or the Trust Agreement. Each capitalized term
defined herein shall relate only to the Series 2006-[    ] Notes but not any other Series of Notes issued by the Issuer. 
 [END OF ARTICLE I] 
  

 2 

 ARTICLE II 
 DEFINITIONS 
 Section 2.01 Definitions. 
 (a) Whenever used in this Indenture Supplement, the following words and phrases shall have the following meanings, and the definitions of such terms are
applicable to the singular as well as the plural forms of such terms and the masculine as well as the feminine and neuter genders of such terms. 
 “Accumulation Period Factor” shall mean, with respect to any Due Period, a fraction, (a) the numerator of which is equal to the sum of (i) the initial invested amounts of all outstanding Series in Principal
Sharing Group One which are not Variable Funding Series, (ii) the invested amount of all outstanding Variable Funding Series in Principal Sharing Group One which are in their revolving periods and (iii) the invested amount as of the end of
the revolving periods for all Outstanding Variable Funding Series in Principal Sharing Group One which are not in their revolving periods and (b) the denominator of which is equal to the sum of (i) the Initial Invested Amount,
(ii) the initial invested amounts of all outstanding Principal Sharing Group One Series (other than Series 2006-[    ]) that have controlled accumulation periods or controlled amortization periods (the length of which may be
altered in accordance with the terms of the related Indenture Supplements) and are not expected to be in their respective revolving periods as of such Due Period and (iii) the invested amount as of the end of the revolving periods for all
Outstanding Variable Funding Series in Principal Sharing Group One which are not expected to be in their revolving periods as of such Due Period; provided, however, that this definition may be changed at any time if an Officer’s Certificate is
delivered indicating that such action will not result in an Adverse Effect. 
 “Accumulation Period Length” shall have the
meaning assigned such term in Section 4.04(e). 
 “Additional Interest” shall mean, with respect to any Distribution
Date, the Class A Additional Interest, the Class B Additional Interest and the Class C Additional Interest for such Distribution Date. 
 “Adjusted Invested Amount” shall mean, with respect to any date of determination, an amount equal to the Invested Amount minus the Principal Funding Account Balance on such date. 
 “Adjusted Pool One Principal Balance” shall mean, as of any date of determination, an amount equal to the greater of (a) the sum of
(i) the total amount of Principal Receivables in Pool One as of the close of business on the last day of the immediately preceding Due Period (or with respect to the first Due Period, the total amount of Principal Receivables in Pool One as of
the Series 2006-[    ] Cut-off Date) and (ii) the principal amount on deposit in the Special Funding Account with respect to Pool One as of the close of business on such last day (or with respect to the first Due Period, the
Series 2006-[    ] Cut-off Date) and (b) the sum of the numerators used to calculate the investor percentages for allocations with respect to Principal 
  

 3 

 Receivables, Finance Charge and Administrative Receivables or Defaulted Amounts, as applicable, for all Pool One Series
outstanding as of the date as to which such determination is being made; provided, however, that with respect to any Due Period in which an Addition Date for an Aggregate Addition or a Removal Date occurs, such amount in clause (a)(i) above shall be
the sum of the following amounts for each day in that Due Period divided by the number of days in that Due Period: (1) the aggregate amount of Principal Receivables in Pool One as of the close of business on the last day of the prior Due
Period, for each day in the period from and including the first day of such Due Period to and including the last day of such Due Period; and (2) the aggregate amount of Principal Receivables added to or removed from Pool One on the related
Additional Cut-Off Date or Removal Date, as the case may be, for each day in the period from and including the related Additional Cut-Off Date or Removal Date to and including the last day of that Due Period. 
 “Available Investor Finance Charge and Administrative Collections” shall mean, with respect to any Due Period, an amount equal to the
sum of (a) the Investor Finance Charge and Administrative Collections, (b) Principal Funding Investment Proceeds, if any, with respect to the related Distribution Date, and (c) amounts, if any, to be withdrawn from the Reserve Account
which will be deposited into the Collection Account on the related Distribution Date to be treated as Available Investor Finance Charge and Administrative Collections pursuant to Sections 4.11(b) and (d). 
 “Available Investor Principal Collections” shall mean, with respect to any Due Period, an amount equal to the sum of
(a) (i) an amount equal to the Investor Principal Collections received during such Due Period minus (ii) the amount of Subordinated Principal Collections with respect to such Due Period, (b) any Shared Principal Collections with
respect to other Principal Sharing Group One Series (including any amounts on deposit in the Special Funding Account with respect to Pool One that are allocated to Series 2006-[    ] pursuant to the Agreement for application as
Shared Principal Collections), (c) any Refunding Proceeds and (d) any other amounts which pursuant to Section 4.04 hereof are to be treated as Available Investor Principal Collections with respect to the related Distribution Date.

 “Available Reserve Account Amount” shall mean, with respect to any Distribution Date, the lesser of (a) the amount
on deposit in the Reserve Account on such date (after taking into account any interest and earnings retained in the Reserve Account pursuant to Section 4.11(b) on such date, but before giving effect to any (i) deposit made or to be made
pursuant to Section 4.04(a) (viii) to the Reserve Account on such date, or (ii) any withdrawal made or to be made pursuant to Section 4.11(d), (e) and (f) from the Reserve Account with respect to such date) and
(b) the Required Reserve Account Amount. 
 “Base Rate” shall mean, with respect to any Due Period, the sum of
(a) the product of the weighted average of the Class A Note Interest Rate, the Class B Note Interest Rate and the Class C Note Interest Rate for the Interest Period commencing in such Due Period (weighted based on the Class A Note
Principal Balance, the Class B Note Principal Balance and the Class C Note Principal Balance as of the last day of the prior Due Period or for the first Due Period as of the Closing Date) multiplied by a fraction, the numerator of which is the Note
Principal Balance and the denominator of which is the sum of the Note Principal Balance and the O/C Amount as of the last day of the prior Due Period or in the case of the first Due Period, the 
  

 4 

 Closing Date and (b) a fraction, the numerator of which is the product of (i) twelve and (ii) the Monthly
Servicing Fee for such Due Period and the denominator of which is the sum of the Note Principal Balance and the O/C Amount as of the last day of the prior Due Period. 
 “Class A Additional Interest” shall have the meaning specified in Section 4.02(a). 
 “Class A Interest Shortfall” shall have the meaning specified in Section 4.02(a). 
 “Class A Monthly Interest” shall have the meaning specified in Section 4.02(a). 
 “Class A Note Initial Principal Balance” shall mean $[            ].

 “Class A Note Interest Rate” shall mean a per annum rate of
[            ]% in excess of LIBOR as determined (i) on
                    , 2006, for the period from and including the Closing Date through and excluding
                    , 2006 and (ii) on the related LIBOR Determination Date with respect to each Interest Period thereafter. 

“Class A Note Principal Balance” shall mean, with respect to any date, an amount equal to (a) the Class A Note Initial
Principal Balance minus (b) the aggregate amount of any principal payments made to the Class A Noteholders prior to such date. 
 “Class A Noteholder” shall mean the Person in whose name a Class A Note is registered in the Note Register. 
 “Class A Notes” shall mean any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-1. 
 “Class B Additional Interest” shall have the meaning specified in Section 4.02(b). 
 “Class B Interest Shortfall” shall have the meaning specified in Section 4.02(b). 
 “Class B Monthly Interest” shall have the meaning specified in Section 4.02(b). 
 “Class B Note Initial Principal Balance” shall mean $[            ].

 “Class B Note Interest Rate” shall mean a per annum rate of
[            ]%in excess of LIBOR as determined (i) on
                    , 2006, for the period from and including the Closing Date through and excluding
                    , 2006 and (ii) on the related LIBOR Determination Date with respect to each Interest Period thereafter. 

“Class B Note Principal Balance” shall mean, with respect to any date, the Class B Note Initial Principal Balance, minus the
aggregate amount of any principal payments made to the Class B Noteholders prior to such date. 
 “Class B Noteholder” shall
mean the Person in whose name a Class B Note is registered in the Note Register. 
 “Class B Notes” shall mean any one of
the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-2. 
  

 5 

 “Class C Additional Interest” shall have the meaning specified in
Section 4.02(c). 
 “Class C Interest Shortfall” shall have the meaning specified in Section 4.02(c).

 “Class C Monthly Interest” shall have the meaning specified in Section 4.02(c). 
 “Class C Note Initial Principal Balance” shall mean
$[            ]. 
 “Class C Note Interest Rate”
shall mean a per annum rate of [            ]%in excess of LIBOR as determined (i) on
                    , 2006, for the period from and including the Closing Date through and excluding
                    , 2006 and (ii) on the related LIBOR Determination Date with respect to each Interest Period thereafter. 

“Class C Note Principal Balance” shall mean, with respect to any date, an amount equal to (a) the Class C Note Initial
Principal Balance minus (b) the aggregate amount of any principal payments made to the Class C Noteholders prior to such date. 
 “Class C Noteholder” shall mean the Person in whose name a Class C Note is registered in the Note Register. 
 “Class C Notes” shall mean any one of the Notes executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-3. 
 “Closing Date” shall mean
                    , 2006. 
 “Controlled Accumulation Amount” shall mean with respect to any Distribution Date in the Controlled Accumulation Period, $[            ] or such greater
amount determined by the Servicer; provided, however, that if the Accumulation Period Length is determined to be less than [12] Due Periods pursuant to Section 4.04(e), the Controlled Accumulation Amount for each Distribution Date with respect
to the Controlled Accumulation Period will be equal to (a) the product of (i) the sum of the Class A Note Initial Principal Balance, the Class B Note Initial Principal Balance and the Class C Note Initial Principal Balance and
(ii) the Accumulation Period Factor for the Due Period related to each Distribution Date divided by (b) the Required Accumulation Factor Number or such greater amount determined by the Servicer. 
 “Controlled Accumulation Period” shall mean, unless an Amortization Event shall have occurred prior thereto, the period commencing at
the close of business on                     , 20    , or such later date as is determined in accordance with
Section 4.04(e), and ending on the first to occur of (a) the commencement of the Early Amortization Period and (b) the payment in full of the Note Principal Balance and the O/C Amount. 
 “Controlled Deposit Amount” shall mean, with respect to any Distribution Date in the Controlled Accumulation Period, an amount equal to
the sum of (a) the Controlled Accumulation Amount for such Distribution Date and (b) any Deficit Controlled Accumulation Amount for the prior Distribution Date; provided that after such time as the Note Principal Balance is zero, the
Controlled Deposit Amount shall be deemed to be zero. 
  

 6 

 “Covered Amount” shall mean an amount, determined as of each Distribution Date with
respect to any Interest Period during the Controlled Accumulation Period or the first Distribution Date related to the Early Amortization Period, equal to the sum of (a) the product of (i) a fraction, the numerator of which is the actual
number of days in such Interest Period and the denominator of which is 360, times (ii) the Class A Note Interest Rate in effect with respect to such Interest Period, times (iii) the aggregate amount on deposit in the Principal Funding
Account up to the Class A Note Principal Balance as of the Record Date preceding such Distribution Date, (b) the product of (i) a fraction, the numerator of which is the actual number of days in such Interest Period and the
denominator of which is 360, times (ii) the Class B Note Interest Rate in effect with respect to such Interest Period, times (iii) the lesser of (A) the aggregate amount on deposit in the Principal Funding Account in excess of
the Class A Note Principal Balance and (B) the Class B Note Principal Balance, in each case as of the Record Date preceding such Distribution Date and (c) the product of (i) a fraction, the numerator of which is the actual number
of days in such Interest Period and the denominator of which is 360, times (ii) the Class C Note Interest Rate in effect with respect to such Interest Period, times (iii) the lesser of (A) the aggregate amount on deposit in the
Principal Funding Account in excess of the sum of the Class A Note Principal Balance and the Class B Note Principal Balance and (B) the Class C Note Principal Balance, in each case as of the Record Date preceding such Distribution Date.

 “Deficit Controlled Accumulation Amount” shall mean (a) on the first Distribution Date during the Controlled
Accumulation Period, the excess, if any, of the Controlled Accumulation Amount for such Distribution Date over the amount deposited in the Principal Funding Account on such Distribution Date and (b) on each subsequent Distribution Date with
respect to the Controlled Accumulation Period, the excess, if any, of the Controlled Deposit Amount for such subsequent Distribution Date over the amount deposited into the Principal Funding Account on such subsequent Distribution Date. 

“Distribution Date” shall mean
                    , 2006 and the fifteenth day of each calendar month thereafter, or if such fifteenth day is not a Business Day, the next
succeeding Business Day. 
 “Early Amortization Period” shall mean the period commencing on the first day of the Due Period
in which an Amortization Event with respect to Series 2006-[    ] is deemed to have occurred or, if the Servicer is required to make daily deposits into the Collection Account, on the day such Amortization Event is deemed to have
occurred, and ending upon the earlier to occur of (a) the payment in full of the Note Principal Balance to the Series 2006-[    ] Noteholders and the O/C Amount to the O/C Holder and (b) the Series
2006-[    ] Final Maturity Date. 
 “Eligible Investments” shall mean, with respect to funds allocable
to Series 2006-[    ] in the Collection Account, the Principal Funding Account and the Reserve Account, “Eligible Investments” as defined in the Indenture, except that (a) all references in such definition to
“rating satisfactory to the Rating Agency” or “highest rating category” shall mean ratings of not less than “A-1+”, “P-1” and “F1+” (whichever is applicable), unless otherwise specified by the Rating
Agency, (b) all such investments shall have maturities at the time of the acquisition thereof occurring no later than the Distribution Date following such date of acquisition and (c) unless rated “A-1+” by S&P, investments in
notes issued by HSBC Finance Corporation (i) shall not qualify as Eligible Investments for the Principal Funding Account or the Reserve Account and (ii) shall not qualify as Eligible Investments in excess of 20% by principal amount of
investments in the Collection Account. 
  

 7 

 “Excess Finance Charge Sharing Group One” shall mean Series
2006-[    ] and each other Series specified in the related indenture supplement to be included in Excess Finance Charge Sharing Group One. 
 “Excess O/C Amount” shall mean, with respect to any Distribution Date, the excess of the O/C Amount (before giving effect to distributions on such Distribution Date) over the Required O/C Amount as of
such Distribution Date. 
 “Excess Spread” shall mean, with respect to any Due Period, the annualized percentage equivalent
of a fraction, (a) the numerator of which is equal to (i) Available Investor Finance Charge and Administrative Collections with respect to such Due Period, plus (ii) any Excess Finance Charge and Administrative Collections that are
allocated to Series 2006-[    ] with respect to such Due Period, minus (iii) the amounts distributable pursuant to Section 4.04(a)(i) through (vii) with respect to the related Distribution Date, and (b) the
denominator of which is the sum of the Note Principal Balance and the O/C Amount as of the last day of the immediately preceding Due Period or with respect to the first Due Period, as of the Closing Date. 
 “Expected Principal Payment Date” shall mean the
                    ,         Distribution Date. 
 “Finance Charge Shortfall” shall have the meaning specified in Section 4.07. 
 “Fixed Investor Percentage” shall mean, with respect to any Due Period, the percentage equivalent (which percentage shall never exceed
100%) of a fraction, (a) the numerator of which is the Adjusted Invested Amount as of the close of business on the last day of the Revolving Period and (b) the denominator of which is the Adjusted Pool One Principal Balance. 
 “Floating Investor Percentage” shall mean, with respect to any Due Period, the percentage equivalent (which percentage shall never
exceed 100%) of a fraction, (a) the numerator of which is the Adjusted Invested Amount as of the close of business on the last day of the preceding Due Period (or with respect to the first Due Period, the Initial Invested Amount) and
(b) the denominator of which is the Adjusted Pool One Principal Balance. 
 “Initial O/C Amount” shall mean
$[            ]. 
 “Initial Invested Amount” shall mean
$[            ]. 
 “Initial Principal Amount” shall mean
$[            ]. 
 “Interest Period” shall mean, with
respect to any Distribution Date, the period from and including the Distribution Date immediately preceding such Distribution Date (or, in the case of the first Distribution Date, from the Closing Date) to but excluding such Distribution Date.

  

 8 

 “Interim Note Principal Amount” shall mean, as of any Distribution Date (with respect to
clauses (a), (b), (c) and (d) , before giving effect to distributions on such Distribution Date), (a) the Class A Note Principal Balance, plus (b) the Class B Note Principal Balance, plus (c) the Class C Note Principal
Balance, minus (d) the Principal Funding Account Balance, if any, as of such Distribution Date, minus (e) the Controlled Deposit Amount deposited on such Distribution Date. 
 “Invested Amount” shall mean, as of any date of determination, an amount equal to the Initial Principal Amount of the Series
2006-[    ] Notes and the Initial O/C Amount minus (a) the amount of principal previously paid to the Series 2006-[    ] Noteholders with respect to the Class A Notes, the Class B Notes and the Class
C Notes (including the principal amount of any Notes purchased by the Transferor) and any reduction in the O/C Amount pursuant to Section 4.04(b) or (c), and (b) the amount of unreimbursed Investor Charge-offs and unreimbursed Subordinated
Principal Collections (such amount shall be a net amount after giving effect to Section 4.04(a)(vi)). 
 “Investor
Charge-off” shall have the meaning specified in Section 4.05. 
 “Investor Defaulted Amount” shall mean, with
respect to any Distribution Date, an amount equal to the product of (a) the Defaulted Amount for the related Due Period and (b) the Investor Percentage for such Due Period. 
 “Investor Finance Charge and Administrative Collections” shall mean, with respect to any Distribution Date, an amount equal to the
product of (a) Investor Percentage for the related Due Period and (b) Collections of Finance Charge and Administrative Receivables deposited in the Collection Account for the related Due Period. 
 “Investor Percentage” shall mean, for any Due Period, (a) with respect to (i) Collections of Finance Charge and Administrative
Receivables at any time, (ii) Collections of Principal Receivables during the Revolving Period and (iii) Defaulted Amounts at any time, the Floating Investor Percentage and (b) with respect to Collections of Principal Receivables
during any period other than the Revolving Period, the Fixed Investor Percentage. 
 “Investor Principal Collections” shall
mean, with respect to any Due Period, an amount equal to the product of (a) the Investor Percentage and (b) Collections of Principal Receivables received during such Due Period. 
 “LIBOR” shall mean, for any Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by
the Indenture Trustee for each Interest Period in accordance with the provisions of Section 4.12. 
 “LIBOR Determination
Date” shall mean for any Interest Period, two London Business Days before such Interest Period commences; provided that the LIBOR Determination Date for the first Interest Period will be two London Business Days before the Closing Date.

 “London Business Day” shall mean any Business Day on which dealings in deposits in United States dollars are transacted
in the London interbank market. 
  

 9 

 “Monthly Interest” shall mean, with respect to any Distribution Date, the sum of the
Class A Monthly Interest, the Class B Monthly Interest and the Class C Monthly Interest for such Distribution Date. 
 “Monthly
Principal” shall mean the monthly principal distributable in respect of the Notes and the O/C Amount as calculated in accordance with Section 4.03. 
 “Monthly Servicing Fee” shall mean, for any Distribution Date, an amount equal to one-twelfth of the product of: 
 (a) the Servicing Fee Rate; 
 (b) the Floating Investor Percentage for the related Due Period; and

 (c) the total amount of Principal Receivables as of the close of business on the last day of the immediately preceding Due Period,
excluding the principal portion of Participation Interests; 
 provided, however, that with respect to any Due Period in which an Addition Date for an
Aggregate Addition or a Removal Date occurs, the amount in clause (c) above shall be the sum of the amounts for each day in that Due Period computed as follows and divided by the number of days in that Due Period: 
 (i) the aggregate amount of Principal Receivables, excluding the principal portion of Participation Interests, as of the close of business
on the last day of the prior Due Period, for each day in the period from and including the first day of such Due Period to and including the last day of such Due Period; and 
 (ii) the aggregate amount of Principal Receivables, excluding the principal portion of Participation Interests, added to or removed on the
related Additional Cut-Off Date or Removal Date, as of the close of business on the related Additional Cut-Off Date or Removal Date, as the case may be, for each day in the period from and including the related Additional Cut-Off Date or Removal
Date to and including the last day of that Due Period. 
 provided further, that with respect to the first Distribution
Date, the Monthly Servicing Fee will equal $[            ]. 
 “Monthly Subordination Amount” shall mean with respect to any Due Period an amount equal to the sum of: 
 (a) the
lower of (i) the excess of the amounts distributable pursuant to Section 4.04(a)(i) over the Available Investor Finance Charge and Administrative Collections and Excess Finance Charge and Administrative Collections allocated with respect
thereto pursuant to Section 4.04(a)(i), and (ii) (1) the product of (I) [            ]% and (II) the Initial Invested Amount minus (2) any principal payments
to the O/C Holder minus (3) the amount of unreimbursed Investor Charge-offs (after giving effect to Investor Charge-offs for the related Due Period) and unreimbursed Subordinated Principal Collections (as of the previous Distribution Date);

  

 10 

 (b) the lower of (i) the excess of the amounts distributable pursuant to Sections 4.04(a)(ii), over
the Available Investor Finance Charge and Administrative Collections and Excess Finance Charge and Administrative Collections allocated with respect thereto pursuant to Sections 4.04(a)(ii), and (ii)(1) the product of
(I) [    ]% and (II) the Initial Invested Amount minus (2) any principal payments to the O/C Holder minus (3) the amount of unreimbursed Investor Charge-offs (after giving effect to Investor Charge-offs for the
related Due Period) and unreimbursed Subordinated Principal Collections (as of the previous Distribution Date, including amounts allocated pursuant to clause (a) above with respect to the related Distribution Date); and 
 (c) the lower of (i) the excess of the amounts distributable pursuant to Sections 4.04(a) (iii) and 4.04(a) (iv), over the Available Investor
Finance Charge and Administrative Collections and Excess Finance Charge and Administrative Collections allocated with respect thereto pursuant to Sections 4.04(a) (iii) and (iv), and (ii) (1) the product of
(I) [    ]% and (II) the Initial Invested Amount minus (2) any principal payments to the O/C Holder minus (3) the amount of unreimbursed Investor Charge-offs (after giving effect to Investor Charge-offs for
the related Due Period) and unreimbursed Subordinated Principal Collections (as of the previous Distribution Date, including amounts allocated pursuant to clauses (a) and (b) above with respect to the related Distribution Date).

 “Note Principal Balance” shall mean, at any time of determination, the sum of the Class A Note Principal Balance,
the Class B Note Principal Balance and the Class C Note Principal Balance. 
 “O/C Amount” shall mean, with respect to any
date, an amount equal to (a) the Invested Amount minus (b) the Note Principal Balance. 
 “O/C Holder” shall mean
the holder of the interest in the O/C Amount, initially HSBC Receivables Funding Inc. I, a Delaware corporation. 
 “Plan”
shall mean employee benefit plans and other plans and arrangements, including individual retirement accounts and annuities, Keogh plans and most collective investment funds or insurance company general or separate accounts in which the plans,
accounts or arrangements are invested, that are subject to the fiduciary responsibility provisions of the Employee Retirement Income Security Act of 1974, as amended, and/or Section 4975 of the Code. 
 “Pool One” shall mean the pool of Receivables related to the Accounts designated as “Pool One Accounts” by the Transferor to
the Indenture Trustee. The Transferor hereby designates all Accounts as Pool One Accounts as of the date hereof. 
 “Pool One
Series” shall mean Series 2006-[    ] and each other Series which is designated as a Pool One Series in the related Indenture Supplement. 
 “Principal Funding Account” shall have the meaning set forth in Section 4.10(a). 
  

 11 

 “Principal Funding Account Balance” shall mean, with respect to any date of
determination, the principal amount, if any, on deposit in the Principal Funding Account on such date of determination. 
 “Principal
Funding Investment Proceeds” shall mean, with respect to each Distribution Date, the investment earnings on funds in the Principal Funding Account (net of investment expenses and losses) for the period from and including the immediately
preceding Distribution Date to but excluding such Distribution Date. 
 “Principal Sharing Group One” shall mean Series
2006-[    ] and each other Series specified in the related Indenture Supplement to be included in Principal Sharing Group One. 
 “Rating Agency” shall mean each of Fitch, Moody’s and Standard & Poor’s. 
 “Reassignment Amount” shall mean, with respect to any Distribution Date, after giving effect to any deposits and distributions otherwise to be made on such Distribution Date, the sum of (a) the Note Principal Balance
and the O/C Amount on such Distribution Date, plus (b) Monthly Interest for such Distribution Date and any Monthly Interest previously due but not distributed to the Series 2006-[    ] Noteholders, plus (c) the amount
of Additional Interest, if any, for such Distribution Date and any Additional Interest previously due but not distributed to the Series 2006-[    ] Noteholders on a prior Distribution Date. 
 “Reference Banks” shall mean four major banks in the London interbank market selected by the Servicer. 
 “Refunding Proceeds” shall mean with respect to any Distribution Date, to the extent specified by the Transferor, (i) any proceeds
of the issuance of a new Series of Notes, (ii) any increase in the Note Principal Balance of an existing Series, and/or (iii) any other funds of the Transferor. 
 “Required Accumulation Factor Number” shall be equal to a fraction, rounded upwards to the nearest whole number, the numerator of which is one and the denominator of which is equal to the lowest
monthly principal payment rate (calculated based upon Collections of Principal Receivables for any Due Period, over the amount of Principal Receivables on the first day of such Due Period) on the Accounts for the 12 months preceding the date of such
calculation; provided, however, that this definition may be changed at any time if the Rating Agency Condition is satisfied. 
 “Required O/C Amount” shall mean, as of the Closing Date, the Initial O/C Amount and, as of any Distribution Date thereafter, an amount equal to the product of (a) a fraction equal to the Initial O/C Amount divided by
the Initial Principal Amount and (b) the Interim Note Principal Amount for such Distribution Date but not less than [    ]% of the Initial Invested Amount; provided that (a) if an Amortization Event has occurred, the
Required O/C Amount for any Distribution Date shall equal the amount of such requirement immediately preceding such Amortization Event, (b) in no event shall the Required O/C Amount exceed the sum of the Class A Note Principal Balance, the
Class B Note Principal Balance and the Class C Note Principal Balance on any such date, (c) the Required O/C Amount may be reduced at any time to a lesser amount if (i) the Rating Agency Condition is satisfied and (ii) an
Officer’s 
  

 12 

 Certificate of the Transferor has been delivered to the effect that in the reasonable belief of the Transferor, such
reduction will not result in an Adverse Effect, and (d) the Transferor, in its sole discretion, may increase the Required O/C Amount at any time. 
 “Required Reserve Account Amount” shall mean, with respect to any Distribution Date on or after the Reserve Account Funding Date, an amount equal to (a) 0.50% of the Note Principal Balance
(before giving effect to distributions on such Distribution Date) or (b) any other amount designated by the Transferor; provided, however, that if such designation is of a lesser amount, the Transferor shall (i) provide the Servicer and
the Indenture Trustee with evidence that the Rating Agency Condition shall have been satisfied and (ii) deliver to the Indenture Trustee an Officer’s Certificate, based on the facts known to such officer at such time, in the reasonable
belief of the Transferor, indicating that such designation will not result in an Adverse Effect. 
 “Required Transferor
Amount” shall have the meaning specified in the Indenture. 
 “Required Transferor Percentage” shall mean, with
respect to Pool One, (a) initially 7.0% or (b) any other percentage designated by the Transferor; provided, however, that if such designation is of a lesser amount, the Transferor shall (i) provide the Servicer and the Indenture
Trustee with evidence that the Rating Agency Condition shall have been satisfied and (ii) deliver to the Indenture Trustee a certificate of an authorized officer to the effect that, based on the facts known to such officer at such time, in the
reasonable belief of the Transferor, such designation will not have an Adverse Effect. 
 “Reserve Account” shall have the
meaning specified in Section 4.11(a). 
 “Reserve Account Funding Date” shall mean (a) the third Distribution Date
prior to the scheduled commencement of the Controlled Accumulation Period if the average Excess Spread for any three consecutive months is 4% or greater, (b) the fourth Distribution Date prior to the scheduled commencement of the Controlled
Accumulation Period if the average Excess Spread for any three consecutive months is 3% or greater, but less than 4%, (c) the sixth Distribution Date prior to the scheduled commencement of the Controlled Accumulation Period if the average
Excess Spread for any three consecutive months is 2% or greater, but less than 3% and (d) the twelfth Distribution Date prior to the scheduled commencement of the Controlled Accumulation Period if the average Excess Spread for any three
consecutive months is less than 2%. For purposes of this definition, Excess Spread shall be determined for each month beginning 15 months prior to the scheduled commencement of the Controlled Accumulation Period. 
 “Reserve Account Surplus” shall mean, as of any Distribution Date following the Reserve Account Funding Date, the amount, if any, by
which the amount on deposit in the Reserve Account exceeds the Required Reserve Account Amount. 
 “Reserve Draw Amount”
shall mean, with respect to each Distribution Date relating to the Controlled Accumulation Period or the first Distribution Date relating to the Early Amortization Period, the amount, if any, by which the Principal Funding Investment Proceeds for
such Distribution Date are less than the Covered Amount determined as of such Distribution Date. 
  

 13 

 “Revolving Period” shall mean the period beginning on the Closing Date and ending on the
earlier of the close of business on the day immediately preceding the day the Controlled Accumulation Period or the Early Amortization Period commences. 
 “Series 2006-[    ]” shall mean the Series of Notes for which the terms are specified in this Indenture Supplement. 
 “Series 2006-[    ] Accounts” shall mean the Reserve Account and the Principal Funding Account. 
 “Series 2006-[    ] Amortization Event” shall have the meaning specified in Section 6.01. 
 “Series 2006-[    ] Cut-off Date” shall mean the close of business on
                    , 2006. 
 “Series 2006-[    ] Final Maturity Date” shall mean the earliest to occur of (a) 45 months after the Expected Principal Payment Date, (b) the Distribution Date on which the Notes are paid in
full, (c) the termination of the Trust pursuant to Section 11.01 of the Indenture and (d) at the option of the Transferor, the day on which the right of all Series of Notes to receive payments from the Trust has terminated.

 “Series 2006-[    ] Note” shall mean a Class A Note, a Class B Note or Class C Note. 

“Series 2006-[    ] Noteholder” shall mean a Class A Noteholder, a Class B Noteholder or a Class C
Noteholder. 
 “Series 2006-[    ] Principal Shortfall” shall have the meaning specified in
Section 4.08. 
 “Series Adjusted Invested Amount” shall mean, with respect to any Due Period: 
 (a) during the Revolving Period, the Invested Amount as of the last day of the immediately preceding Due Period (or with respect to the first Due Period,
as of the Closing Date); and 
 during the Controlled Accumulation Period or any Early Amortization Period, the amount specified in clause
(a) above as of the close of business on the last day of the Revolving Period less unreimbursed Investor Charge-offs thereafter. 
 “Series Portfolio Yield” shall mean, with respect to any Due Period, the annualized percentage equivalent of a fraction, (a) the numerator of which is equal to the sum of (i) Available Investor Finance Charge and
Administrative Collections, plus (ii) any Excess Finance Charge and Administrative Collections that are allocated to Series 2006-[ ] with respect to such Due Period, such sum to be calculated after subtracting the Investor Defaulted Amount

  

 14 

 for such Due Period, and (b) the denominator of which is the sum of the Note Principal Balance and the O/C Amount as
of the last day of the immediately preceding Due Period, or with respect to the first Due Period, as of the Closing Date. 
 “Servicing Fee Rate” shall mean 2% per annum or such lesser percentage as may be specified by the Servicer in an Officer’s Certificate filed with the Indenture Trustee; provided, however, that (a) such
Officer’s Certificate shall state that, in the reasonable belief of the Servicer, such change in percentage will not result in an Adverse Effect and (b) the Servicer shall have provided written notice of such change to the Rating Agency at
least ten days prior to the date such change is to take effect. 
 “Subordinated Principal Collections” shall mean, with
respect to any Due Period, Investor Principal Collections applied in accordance with Section 4.06. 
 “Telerate Page
3750” shall mean the display page currently so designated on the Moneyline Telerate Services Report (or such other page as may replace that page in that service for the purpose of displaying comparable rates or prices). 
 “Variable Funding Series” shall mean any Series, the invested amount of which may be increased or decreased subject to the satisfaction
of certain conditions specified in the Indenture Supplement related to such Series. 
 Each capitalized term defined herein shall relate to
the Series 2006-[ ] Notes and no other Series of Notes issued by the Trust, unless the context otherwise requires. All capitalized terms used herein and not otherwise defined herein have the meanings ascribed to them in the Indenture or the Transfer
and Servicing Agreement. 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 or Transfer and Servicing Agreement, the terms and provisions of this
Indenture Supplement shall govern. 
 The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Indenture Supplement shall refer to this Indenture Supplement as a whole and not to any particular provision of this Indenture Supplement; references to any Article, subsection, Section or Exhibit are references to Articles,
subsections, Sections and Exhibits in or to this Indenture Supplement unless otherwise specified; and the term “including” means “including without limitation.” 
 [END OF ARTICLE II] 
  

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 ARTICLE III 
 SERVICING FEE AND INTERCHANGE 
 Section 3.01 Servicing Compensation; Interchange. 
 (a) Servicing Fee. The share of the Servicing Fee allocable to the Series 2006-[    ] Noteholders with respect to any Distribution
Date shall equal the Monthly Servicing Fee for the related Due Period. The portion of the Servicing Fee that is not allocable to the Series 2006-[    ] Noteholders shall be paid by the holders of the Transferor Certificates or
the noteholders of other Series (as provided in the related Indenture Supplements), and in no event shall the Trust, the Owner Trustee, the Indenture Trustee or the Series 2006-[    ] Noteholders be liable for the share of the
Servicing Fee to be paid by the holders of the Transferor Certificates or the noteholders of any other Series. 
 (b) Interchange. Not later
than 1:00 p.m., New York City time, on each Transfer Date, the Servicer shall notify the Transferor, the Owner Trustee and the Indenture Trustee of the amount of Interchange to be included as Collections of Finance Charge and Administrative
Receivables. On each Distribution Date, the Transferor shall cause to be deposited into the Collection Account, in immediately available funds, the amount of Interchange to be so included as Collections of Finance Charge and Administrative
Receivables allocable to Series 2006-[    ] with respect to the preceding Due Period and such Interchange shall be treated as a portion of Collections of Finance Charge and Administrative Receivables allocable to Series
2006-[    ] for all purposes of this Indenture Supplement, the Indenture and the Transfer and Servicing Agreement. Notwithstanding the above, if the Transferor shall have delivered to the Indenture Trustee an Officer’s
Certificate stating that the Transferor reasonably believes that such action will not have an Adverse Effect, the Transferor may, in lieu of causing the deposit of Interchange into the Collection Account as set forth above, designate Discount Option
Receivables pursuant to Section 2.12 of the Transfer and Servicing Agreement in an amount approximately equal to the then current Interchange with respect to the Accounts. 
 [END OF ARTICLE III] 
  

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 ARTICLE IV 
 RIGHTS OF SERIES 2006-[    ] NOTEHOLDERS 
 AND ALLOCATION AND APPLICATION OF COLLECTIONS

 Section 4.01 Collections and Allocations. 
 (a) Allocations. Collections of Finance Charge and Administrative Receivables and Principal Receivables and Defaulted Receivables allocated to Series 2006-[    ] pursuant to Article VIII of the
Indenture shall be allocated and distributed as set forth in this Article. 
 (b) Payments to the Transferor. The Servicer shall on Deposit
Dates direct the Indenture Trustee to withdraw from the Collection Account and pay to the Transferor the following amounts: 
 (i) an amount equal to the Transferor Percentage for the related Due Period of Collections of Finance Charge and Administrative Receivables to the extent that such amount is then on deposit in the Collection Account; and 
 (ii) (A) if the Transferor Amount (determined after giving effect to any Principal Receivables transferred to the Trust on such Deposit
Date) exceeds zero, an amount equal to the Transferor Percentage for the related Due Period of Collections of Principal Receivables that are then on deposit in the Collection Account, and 
 (B) if the Transferor Amount (determined after giving effect to any Principal Receivables transferred to the Trust on such Deposit Date)
does not exceed zero, the amount set forth in clause (A) shall be deposited into the Special Funding Account. 
 The withdrawals to be
made from the Collection Account pursuant to this Section 4.01(b) do not apply to deposits into the Collection Account that do not represent Collections, including payment of the purchase price for the Receivables or the Notes pursuant to
Section 2.06 or 7.01 of the Transfer and Servicing Agreement or Section 11.04 of the Indenture. 
 (c) Allocations to the Series
2006-[    ] Noteholders and to the O/C Holder. The Servicer shall, prior to the close of business on any Deposit Date, allocate to the Series 2006-[    ] Noteholders and to the O/C Holder the following amounts
as set forth below: 
 (i) Allocations of Investor Finance Charge and Administrative Collections. The Servicer shall allocate
to the Series 2006-[    ] Noteholders and to the O/C Holder and retain in the Collection Account for application as provided herein an amount equal to the product of (A) the Investor Percentage and (B) the aggregate
amount of Collections of Finance Charge and Administrative Receivables deposited in the Collection Account on such Deposit Date. 
  

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 (ii) Allocations of Principal Collections. The Servicer shall allocate to the Series
2006-[    ] Noteholders and the O/C Holder the following amounts as set forth below: 
 (A) Allocations
During the Revolving Period. During the Revolving Period an amount equal to the product of (I) the Investor Percentage and (II) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit
Date, shall be allocated to the Series 2006-[    ] Noteholders and the O/C Holder and retained in the Collection Account until applied as provided herein. 
 (B) Allocations During the Controlled Accumulation Period. During the Controlled Accumulation Period an amount equal to the product of
(I) the Investor Percentage and (II) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date shall be allocated to the Series 2006-[    ] Noteholders and
deposited in the Principal Funding Account, until applied as provided herein; provided, however, that if such Collections with respect to such Due Period exceed the Controlled Deposit Amount for the related Distribution Date then such excess shall
be, first, allocated to the O/C Holder and retained in the Collection Account for application to reduce the O/C Amount to the Required O/C Amount, second, if any other Principal Sharing Series in Principal Sharing Group One is outstanding and in its
amortization period or accumulation period, retained in the Collection Account for application, to the extent necessary, as Shared Principal Collections to other Series in Principal Sharing Group One on the related Distribution Date and, third, paid
to the holders of the Transferor Certificates only if the Transferor Amount on such Deposit Date is greater than the Required Transferor Amount (after giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise
shall be deposited in the Special Funding Account for Pool One. 
 (C) Allocations During the Early Amortization Period.
During the Early Amortization Period, an amount equal to the product of (I) the Investor Percentage and (II) the aggregate amount of Collections of Principal Receivables deposited in the Collection Account on such Deposit Date, shall be
allocated to the Series 2006-[    ] Noteholders and the O/C Holder and retained in the Collection Account until applied as provided herein; provided, however, that after the date on which an amount of such Collections equal to
the Note Principal Balance has been deposited into the Collection Account and allocated to the Series 2006-[    ] Noteholders, the excess over such amount shall be, first, retained in the Collection Account for application to
reduce the O/C Amount to the Required O/C Amount, second, if any other Principal Sharing Series in Principal Sharing Group One is outstanding and in its amortization period or accumulation period, retained in the Collection Account for application,
to the extent necessary, as Shared Principal Collections on the related Distribution Date and, third, paid to the holders of the Transferor Certificates only if the Transferor Amount on such date is greater than the Required Transferor Amount (after
giving effect to all Principal Receivables transferred to the Trust on such day) and otherwise shall be deposited in the Special Funding Account for Pool One. 
  

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 Section 4.02 Determination of Monthly Interest. 
 (a) The amount of monthly interest (“Class A Monthly Interest”) distributable from the Collection Account with respect to the
Class A Notes on any Distribution Date 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 Class A Note Interest Rate in effect with respect to the related Interest Period and (ii) the Class A Note Principal Balance as of the close of business on the last day of the preceding Due Period, or with respect to the
first Interest Period, as of the Closing Date. 
 On the Determination Date preceding each Distribution Date, the Servicer shall determine
the excess, if any (the “Class A Interest Shortfall”), of (x) the Class A Monthly Interest for such Distribution Date and any unpaid Class A Monthly Interest for a prior Distribution Date over (y) the
aggregate amount of funds allocated and available to pay such Class A Monthly Interest on such Distribution Date. If the Class A Interest Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution
Date until such Class A Interest Shortfall is fully paid, an additional amount (“Class A Additional Interest”) equal to the product of (i) a fraction, the numerator of which is the actual number of days in the
related Interest Period and the denominator of which is 360, (ii) the Class A Note Interest Rate in effect with respect to the related Interest Period and (iii) such Class A Interest Shortfall (or the portion thereof which has
not been paid to the Class A Noteholders) shall be payable as provided herein with respect to the Class A Notes. Notwithstanding anything to the contrary herein, Class A Additional Interest shall be payable or distributed to the
Class A Noteholders only to the extent permitted by applicable law. 
 (b) The amount of monthly interest (“Class B Monthly
Interest”) distributable from the Collection Account with respect to the Class B Notes on any Distribution Date 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 Class B Note Interest Rate in effect with respect to the related Interest Period and (ii) the Class B Note Principal Balance as of the close of business on
the last day of the preceding Due Period, or with respect to the first Interest Period, as of the Closing Date. 
 On the Determination Date
preceding each Distribution Date, the Servicer shall determine the excess, if any (the “Class B Interest Shortfall”), of (x) the Class B Monthly Interest for such Distribution Date and any unpaid Class B Monthly Interest
for a prior Distribution Date over (y) the aggregate amount of funds allocated and available to pay such Class B Monthly Interest on such Distribution Date. If the Class B Interest Shortfall with respect to any Distribution Date is greater than
zero, on each subsequent Distribution Date until such Class B Interest Shortfall is fully paid, an additional amount (“Class B Additional Interest”) equal to the product of (i) a fraction, the numerator of which is the
actual number of days in the related Interest Period and the denominator of which is 360, (ii) the Class B Note Interest Rate in effect with respect to the related Interest Period and (iii) such Class B Interest Shortfall (or the portion
thereof which has not been paid to the Class B Noteholders) shall be payable as provided 
  

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 herein with respect to the Class B Notes. Notwithstanding anything to the contrary herein, Class B Additional Interest
shall be payable or distributed to the Class B Noteholders only to the extent permitted by applicable law. 
 (c) The amount of monthly
interest (“Class C Monthly Interest”) distributable from the Collection Account with respect to the Class C Notes on any Distribution Date 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 Class C Note Interest Rate in effect with respect to the related Interest Period and (ii) the Class C Note
Principal Balance as of the close of business on the last day of the preceding Due Period, or with respect to the first Interest Period, as of the Closing Date. 
 On the Determination Date preceding each Distribution Date, the Servicer shall determine the excess, if any (the “Class C Interest Shortfall”), of (x) the Class C Monthly Interest for
such Distribution Date and any unpaid Class C Monthly Interest for a prior Distribution Date over (y) the aggregate amount of funds allocated and available to pay such Class C Monthly Interest on such Distribution Date. If the Class C Interest
Shortfall with respect to any Distribution Date is greater than zero, on each subsequent Distribution Date until such Class C Interest Shortfall is fully paid, an additional amount (“Class C Additional Interest”) 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 Class C Note Interest Rate in effect with respect to the related
Interest Period and (ii) such Class C Interest Shortfall (or the portion thereof which has not been paid to the Class C Noteholders) shall be payable as provided herein with respect to the Class C Notes. Notwithstanding anything to the
contrary herein, Class C Additional Interest shall be payable or distributed to the Class C Noteholders only to the extent permitted by applicable law. 
 Section 4.03 Determination of Monthly Principal. 
 The amount of monthly principal distributable
from the Collection Account with respect to the Notes and the O/C Amount on each Distribution Date (the “Monthly Principal”), beginning with the Distribution Date in the month following the month in which the Controlled
Accumulation Period or, if earlier, the Early Amortization Period, begins, shall be equal to the least of (a) the Available Investor Principal Collections on deposit in the Collection Account with respect to such Distribution Date, (b) for
each Distribution Date with respect to the Controlled Accumulation Period, the sum of the Controlled Deposit Amount and the Excess O/C Amount for such Distribution Date and (c) the Adjusted Invested Amount (after taking into account any
adjustments to be made on such Distribution Date pursuant to Sections 4.05 and 4.06). 
 Section 4.04 Application of Available Funds
on Deposit in the Collection Account. 
 The Servicer shall apply, or shall cause the Indenture Trustee to apply by written instruction to
the Indenture Trustee, on each Distribution Date, Excess Finance Charge and Administrative Collections allocable to Series 2006-[ ] in accordance with Section 4.07 and Available Investor Finance Charge and Administrative Collections and
Available Investor Principal Collections on deposit in the Collection Account with respect to such Distribution Date to make the following distributions: 
  

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 (a) On each Distribution Date, an amount equal to the Available Investor Finance Charge and
Administrative Collections and Excess Finance Charge and Administrative Collections allocable to Series 2006-[    ] in accordance with Section 4.07 with respect to such Distribution Date will be distributed or deposited in
the following priority: 
 (i) an amount equal to Class A Monthly Interest for such Distribution Date, plus the amount of
any Class A Monthly Interest (or portion thereof) previously due but not distributed to Class A Noteholders on a prior Distribution Date, plus the amount of any Class A Additional Interest for such Distribution Date, plus the amount
of any Class A Additional Interest previously due but not distributed to Class A Noteholders on a prior Distribution Date, shall be distributed to the Paying Agent for payment to Class A Noteholders on such Distribution Date;

 (ii) an amount equal to Class B Monthly Interest (or portion thereof) for such Distribution Date, plus the amount of any
Class B Monthly Interest previously due but not distributed to Class B Noteholders on a prior Distribution Date, plus the amount of any Class B Additional Interest for such Distribution Date, plus the amount of any Class B Additional Interest
previously due but not distributed to Class B Noteholders on a prior Distribution Date, shall be distributed to the Paying Agent for payment to Class B Noteholders on the applicable Distribution Date; 
 (iii) an amount equal to Class C Monthly Interest (or portion thereof) for such Distribution Date, plus the amount of any Class C Monthly
Interest previously due but not distributed to Class C Noteholders on a prior Distribution Date, plus the amount of any Class C Additional Interest for such Distribution Date, plus the amount of any Class C Additional Interest previously due but not
distributed to Class C Noteholders on a prior Distribution Date, shall be distributed to the Paying Agent for payment to Class C Noteholders on the applicable Distribution Date; 
 (iv) an amount equal to the Monthly Servicing Fee for such Distribution Date, plus the amount of any Monthly Servicing Fee
previously due but not distributed to such Servicer on a prior Distribution Date, shall be distributed to such Servicer (unless such amount has been netted against deposits to the Collection Account in accordance with Section 8.04 of the
Indenture); 
 (v) an amount equal to the Investor Defaulted Amount for such Distribution Date shall be treated as a portion
of Available Investor Principal Collections for such Distribution Date; 
 (vi) an amount equal to the sum of the aggregate
amount of Investor Charge-offs and the amount of Subordinated Principal Collections which have not been previously reimbursed shall be treated as a portion of Available Investor Principal Collections for such Distribution Date (such amount shall be
treated as a reimbursement of prior Investor Charge-offs or Subordinated Principal Collections, as the case may be and the Invested Amount shall be deemed increased by such amount); 
  

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 (vii) upon the occurrence of an Event of Default with respect to Series
2006-[    ] and acceleration of the maturity of the Series 2006-[    ] Notes pursuant to Section 5.03 of the Indenture, the balance, if any, up to the outstanding Note Principal Balance shall be treated
as a portion of Available Investor Principal Collections for such Distribution Date for distribution to the Series 2006-[    ] Noteholders; 
 (viii) on each Distribution Date from and after the Reserve Account Funding Date, but prior to the date on which the Reserve Account
terminates as described in Section 4.11(f), an amount equal to the excess, if any, of the Required Reserve Account Amount over the Available Reserve Account Amount shall be deposited into the Reserve Account; and 
 (ix) the balance, if any, will constitute a portion of Excess Finance Charge and Administrative Collections for such Distribution Date and
will be available for allocation to other Series in Excess Finance Charge Sharing Group One or to the Transferor, as set forth in Section 8.07(d) of the Indenture. 
 (b) On each Distribution Date with respect to the Revolving Period, an amount equal to the Available Investor Principal Collections deposited in the Collection Account for the related Due Period shall be distributed
in the following order of priority: 
 (i) an amount equal to the excess, if any, of the O/C Amount over the Required O/C
Amount shall be paid to the Transferor, for reduction of the O/C Amount, to the extent that the Transferor Amount exceeds zero; and 
 (ii) the balance of such Available Investor Principal Collections shall be treated as Shared Principal Collections with respect to Principal Sharing Group One and applied in accordance with Section 8.05 of the Indenture. 
 (c) On each Distribution Date with respect to the Controlled Accumulation Period or the Early Amortization Period, an amount equal to the Available
Investor Principal Collections deposited in the Collection Account for the related Due Period shall be distributed or deposited in the following order of priority: 
 (i) during the Controlled Accumulation Period, on or prior to the Expected Principal Payment Date, an amount equal to the Monthly
Principal for such Distribution Date shall be, first, deposited into the Principal Funding Account in an amount not to exceed the Controlled Deposit Amount and, second, an amount not to exceed the Excess O/C Amount shall be distributed to the O/C
Holder for reduction of the O/C Amount; 
 (ii) during the Early Amortization Period, an amount equal to the Monthly Principal
for such Distribution Date shall be distributed to the Paying Agent for payment to the Class A Noteholders on such Distribution Date and on each subsequent Distribution Date until the Class A Note Principal Balance has been paid in full;

  

 22 

 (iii) after the Class A Note Principal Balance has been reduced to zero, during the
Early Amortization Period, an amount equal to the Monthly Principal remaining, if any, shall be distributed to the Paying Agent for payment to the Class B Noteholders on such Distribution Date and on each subsequent Distribution Date until the Class
B Note Principal Balance has been paid in full; 
 (iv) after the Class B Note Principal Balance has been reduced to zero,
during the Early Amortization Period, an amount equal to the Monthly Principal remaining, if any, shall be distributed to the Paying Agent for payment to the Class C Noteholders on such Distribution Date and on each subsequent Distribution Date
until the Class C Note Principal Balance has been paid in full; 
 (v) after the Class C Note Principal Balance has been
reduced to zero, during the Early Amortization Period, an amount equal to the Monthly Principal remaining, if any, shall be distributed to the O/C Holder, for reduction of the O/C Amount, on such Distribution Date and on each subsequent Distribution
Date until the O/C Amount has been paid in full; and 
 (vi) the balance of such Available Investor Principal Collections
shall be treated as Shared Principal Collections with respect to Principal Sharing Group One and applied in accordance with Section 8.05 of the Indenture. 
 (d) On the earlier to occur of (i) the first Distribution Date with respect to the Early Amortization Period and (ii) the Expected Principal Payment Date, the Indenture Trustee, acting in accordance with
instructions from the Servicer, shall withdraw all amounts deposited in the Principal Funding Account and distribute such amounts to the Paying Agent for payment, first, to the Class A Noteholders up to the Class A Note Principal Balance,
second, to the Class B Noteholders up to the Class B Note Principal Balance, and third, to the Class C Noteholders up to the Class C Note Principal Balance. 
 (e) The Controlled Accumulation Period is scheduled to commence at the close of business on
                    , 20    ; provided, however, that, if the Accumulation Period Length (determined as described
below) is less than [    ] Due Periods, the date on which the Controlled Accumulation Period actually commences will be delayed to the first Business Day of the Due Period that is the number of whole Due Periods prior to the
Expected Principal Payment Date at least equal to the Accumulation Period Length and, as a result, the number of Due Periods in the Controlled Accumulation Period will at least equal the Accumulation Period Length. On the Determination Date
immediately preceding the                     20     Distribution Date, and each Determination Date thereafter
until the Controlled Accumulation Period begins, the Servicer will determine the “Accumulation Period Length” which will equal the number of whole Due Periods such that the sum of the Accumulation Period Factors for each Due Period during
such period will be equal to or greater than the Required Accumulation Factor Number; provided, however, that the Accumulation Period Length will not be determined to be less than one Due Period; provided further, however, that the determination of
the Accumulation Period Length may be changed at any time if an Officer’s Certificate is delivered by the Transferor indicating that, in the reasonable belief of an Authorized Officer of the Transferor, such action will not result in an Adverse
Effect. 
  

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 Section 4.05 Investor Charge-offs. On each Determination Date, the Servicer shall calculate
the Investor Defaulted Amount, if any, for the related Distribution Date. If, on any Distribution Date, the Investor Defaulted Amount for the related Due Period exceeds the amount available therefor pursuant to Section 4.04(a)(v) with respect
to such Due Period, the Invested Amount will be reduced by the amount of such excess, but not by more than the Investor Defaulted Amount for such Distribution Date (such reduction, an “Investor Charge-off”). Previously
unreimbursed Investor Charge-offs shall be reimbursed pursuant to Section 4.04(a)(vi), and the Invested Amount shall be adjusted accordingly. 
 Section 4.06 Subordinated Principal Collections. On each Distribution Date, the Servicer shall apply, or shall cause the Indenture Trustee to withdraw from the Collection Account and apply, Subordinated Principal Collections
with respect to such Distribution Date, in an amount equal to the lesser of the (a) Investor Principal Collections received during the preceding Due Period and (b) the Monthly Subordination Amount for the preceding Due Period in accordance
with the priority set forth in clauses (i) through (iv) of Section 4.04(a). On each Distribution Date, the Invested Amount shall be reduced by the amount of Subordinated Principal Collections for such Distribution Date. Previously
unreimbursed Subordinated Principal Collections shall be reimbursed pursuant to Section 4.04(a)(vi), and the Invested Amount shall be adjusted accordingly. 
 Section 4.07 Excess Finance Charge and Administrative Collections. Subject to Section 8.07(d) of the Indenture, Excess Finance Charge and Administrative Collections with respect to the Excess Finance
Charge Sharing Series in Excess Finance Charge Sharing Group One for any Distribution Date will be allocated to Series 2006-[    ] in an amount equal to the product of (a) the aggregate amount of Excess Finance Charge and
Administrative Collections with respect to all the Excess Finance Charge Sharing Series in Excess Finance Charge Sharing Group One for such Distribution Date and (b) a fraction, the numerator of which is the Finance Charge Shortfall for Series
2006-[    ] for such Distribution Date and the denominator of which is the aggregate amount of Finance Charge Shortfalls for all the Excess Finance Charge Sharing Series in Excess Finance Charge Sharing Group One for such
Distribution Date. The “Finance Charge Shortfall” for Series 2006-[    ] for any Distribution Date will be equal to the excess, if any, of (a) the full amount required to be paid, without duplication, pursuant to
Sections 4.04(a)(i) through (viii) on such Distribution Date over (b) the Available Investor Finance Charge and Administrative Collections with respect to such Distribution Date. 
 Section 4.08 Shared Principal Collections. 
 Subject to Section 8.05 of the Indenture, Shared Principal Collections with respect to the Series in Principal Sharing Group One for any Distribution Date will be allocated to Series
2006-[    ] in an amount equal to the product of (a) the aggregate amount of Shared Principal Collections with respect to all Principal Sharing Series in Principal Sharing Group One for such Distribution Date and (b) a
fraction, the numerator of which is the Series 2006-[    ] Principal Shortfall for such Distribution Date and the denominator of which is the aggregate amount of Principal Shortfalls for all the Series which are Principal Sharing
Series in Principal Sharing Group One for such Distribution Date. The “Series 2006-[    ] Principal Shortfall” will be equal to (a) for any Distribution Date with respect to the Revolving Period, zero, (b) for
any Distribution Date with respect to the Controlled Accumulation Period, the excess, if any, of (i) the sum of the 
  

 24 

 Controlled Deposit Amount and the Excess O/C Amount with respect to such Distribution Date over (ii) the amount of
Available Investor Principal Collections for such Distribution Date (excluding any portion thereof attributable to Shared Principal Collections), and (c) for any Distribution Date with respect to the Early Amortization Period, the excess, if
any, of (i) the Adjusted Invested Amount over (ii) the amount of Available Investor Principal Collections for such Distribution Date (excluding any portion thereof attributable to Shared Principal Collections). 
 Section 4.09 [Reserved]. 
 Section 4.10 Principal Funding Account. 
 (a) The Indenture Trustee shall establish and maintain with an Eligible
Institution, which may be the Indenture Trustee, in the name of the Indenture Trustee, for the benefit of the Series 2006-[    ] Noteholders, a segregated trust account with the corporate trust department of such Eligible
Institution (the “Principal Funding Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Series 2006-[    ] Noteholders. The Indenture
Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Principal Funding Account and in all proceeds thereof. The Principal Funding Account shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Series 2006-[    ] Noteholders. If at any time the institution holding the Principal Funding Account ceases to be an Eligible Institution, the Transferor shall notify the Indenture Trustee, and the
Indenture Trustee upon being notified (or the Servicer on its behalf) shall, within 10 Business Days, (or such longer period as to which the Rating Agency has consented) establish a new Principal Funding Account meeting the conditions specified
above with an Eligible Institution, and shall transfer any cash or any investments to such new Principal Funding Account. The Indenture Trustee, at the direction of the Servicer, shall (i) make withdrawals from the Principal Funding Account
from time to time, in the amounts and for the purposes set forth in this Indenture Supplement, and (ii) on each Distribution Date (from and after the commencement of the Controlled Accumulation Period) prior to the termination of the Principal
Funding Account, make deposits into the Principal Funding Account in the amounts specified in, and otherwise in accordance with, Section 4.04(c)(i). 
 (b) Funds on deposit in the Principal Funding Account shall be invested at the direction of the Servicer by the Indenture Trustee in Eligible Investments. Funds on deposit in the Principal Funding Account on any
Distribution Date, after giving effect to any withdrawals from the Principal Funding Account on such Distribution Date, shall be invested in such investments that will mature so that such funds will be available for withdrawal on or prior to the
following Distribution Date. The Indenture Trustee shall: 
 (i) hold each Eligible Investment that constitutes investment
property through a Securities Intermediary, which Securities Intermediary shall agree with the Indenture Trustee that (A) such investment property at all times shall be credited to a securities account of the Indenture Trustee, (B) all
property credited to such securities account shall be treated as a financial asset, (C) such Securities Intermediary shall treat the Indenture Trustee as entitled to exercise the rights that comprise each financial asset credited to such
securities account, (D) such Securities Intermediary shall comply with 
  

 25 

 entitlement orders originated by the Indenture Trustee without the further consent of any other person or
entity, (E) such Securities Intermediary shall not agree with any person or entity other than the Indenture Trustee to comply with entitlement orders originated by any person or entity other than the Indenture Trustee, (F) such securities
account and all property credited thereto shall not be subject to any lien, security interest, right of set-off, or encumbrance in favor of such Securities Intermediary or anyone claiming through such Securities Intermediary (other than the
Indenture Trustee), and (G) such agreement between such Securities Intermediary and the Indenture Trustee shall be governed by the laws of the State of New York; and 
 (ii) maintain possession of each other Eligible Investment not described in clause (i) above; 
 provided, that no Eligible Investment shall be disposed of prior to its maturity date. Terms used in clause (i) above that are defined in the New York UCC and not
otherwise defined herein shall have the meaning set forth in the New York UCC. 
 On each Distribution Date with respect to the Controlled
Accumulation Period and on the first Distribution Date with respect to the Early Amortization Period, the Indenture Trustee, acting at the Servicer’s direction given on or before such Distribution Date, shall transfer from the Principal Funding
Account to the Collection Account the Principal Funding Investment Proceeds on deposit in the Principal Funding Account for application as Available Investor Finance Charge and Administrative Collections for such Distribution Date. 
 Principal Funding Investment Proceeds (including reinvested interest) shall not be considered part of the amounts on deposit in the Principal Funding
Account for purposes of this Indenture Supplement. 
 Section 4.11 Reserve Account. 
 (a) The Indenture Trustee shall establish and maintain with an Eligible Institution, which may be the Indenture Trustee in the name of the Indenture
Trustee, for the benefit of the Series 2006-[    ] Noteholders, a segregated trust account with the corporate trust department of such Eligible Institution (the “Reserve Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of the Series 2006-[    ] Noteholders. The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in
the Reserve Account and in all proceeds thereof. The Reserve Account shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Series 2006-[    ] Noteholders. If at any time the institution
holding the Reserve Account ceases to be an Eligible Institution, the Transferor shall notify the Indenture Trustee, and the Indenture Trustee upon being notified (or the Servicer on its behalf) shall, within 10 Business Days (or such longer period
as to which the Rating Agency has consented), establish a new Reserve Account meeting the conditions specified above with an Eligible Institution, and shall transfer any cash or any investments to such new Reserve Account. The Indenture Trustee, at
the direction of the Servicer, shall (i) make withdrawals from the Reserve Account from time to time in an amount up to the Available Reserve Account Amount at such time, for the purposes set forth in this Indenture Supplement, and (ii) on
each Distribution Date (from and after the 
  

 26 

 Reserve Account Funding Date) prior to termination of the Reserve Account, make a deposit into the Reserve Account in the
amount specified in, and otherwise in accordance with, Section 4.04(a)(viii). 
 (b) Funds on deposit in the Reserve Account shall be
invested at the direction of the Servicer by the Indenture Trustee in Eligible Investments. Funds on deposit in the Reserve Account on any Distribution Date, after giving effect to any withdrawals from the Reserve Account on such Distribution Date,
shall be invested in such investments that will mature so that such funds will be available for withdrawal on or prior to the following Distribution Date. The Indenture Trustee shall: 
 (i) hold each Eligible Investment that constitutes investment property through a Securities Intermediary, which Securities Intermediary
shall agree with the Indenture Trustee that (A) such investment property at all times shall be credited to a securities account of the Indenture Trustee, (B) all property credited to such securities account shall be treated as a financial
asset, (C) such Securities Intermediary shall treat the Indenture Trustee as entitled to exercise the rights that comprise each financial asset credited to such securities account, (D) such Securities Intermediary shall comply with
entitlement orders originated by the Indenture Trustee without the further consent of any other person or entity, (E) such Securities Intermediary shall not agree with any person or entity other than the Indenture Trustee to comply with
entitlement orders originated by any person or entity other than the Indenture Trustee, (F) such securities account and all property credited thereto shall not be subject to any lien, security interest, right of set-off, or encumbrance in favor
of such Securities Intermediary or anyone claiming through such Securities Intermediary (other than the Indenture Trustee), and (G) such agreement between such Securities Intermediary and the Indenture Trustee shall be governed by the laws of
the State of New York; and 
 (ii) maintain possession of each other Eligible Investment not described in clause
(i) above; 
 provided that no Eligible Investment shall be disposed of prior to its maturity date. Terms used in clause (i) above that are defined
in the New York UCC and not otherwise defined herein shall have the meaning set forth in the New York UCC. 
 On each Distribution Date, all
interest and earnings (net of losses and investment expenses) accrued since the preceding Distribution Date on funds on deposit in the Reserve Account shall be retained in the Reserve Account to the extent that the Available Reserve Account Amount
is less than the Required Reserve Account Amount, and the balance, if any, shall be deposited into the Collection Account and included in Available Investor Finance Charge and Administrative Collections for such Distribution Date. For purposes of
determining the availability of funds or the balance in the Reserve Account for any reason under this Indenture Supplement, except as otherwise provided in the preceding sentence, investment earnings on such funds shall be deemed not to be available
or on deposit. 
 (c) On or before each Distribution Date with respect to the Controlled Accumulation Period and on or before the first
Distribution Date with respect to the Early 
  

 27 

 Amortization Period, the Servicer shall calculate the Reserve Draw Amount; provided, however, that such amount will be
reduced to the extent that funds otherwise would be available for deposit in the Reserve Account under Section 4.04(a)(viii) with respect to such Distribution Date. 
 (d) In the event that for any Distribution Date the Reserve Draw Amount is greater than zero, the Reserve Draw Amount, up to the Available Reserve Account Amount, shall be withdrawn from the Reserve Account on such
Distribution Date by the Indenture Trustee (acting in accordance with the instructions of the Servicer) and deposited into the Collection Account for application as Available Investor Finance Charge and Administrative Collections for such
Distribution Date. 
 (e) In the event that the Reserve Account Surplus on any Distribution Date, after giving effect to all deposits to and
withdrawals from the Reserve Account with respect to such Distribution Date, is greater than zero, the Indenture Trustee, acting in accordance with the instructions of the Servicer, shall withdraw from the Reserve Account and pay to the holder of
the Transferor Certificate an amount equal to such Reserve Account Surplus. 
 (f) Upon the earliest to occur of (i) if the Controlled
Accumulation Period has not commenced, the first Distribution Date relating to the Early Amortization Period and (ii) if the Controlled Accumulation Period has commenced, the earlier of the first Distribution Date with respect to the Early
Amortization Period and the Expected Principal Payment Date, the Indenture Trustee, acting in accordance with the instructions of the Servicer, after the prior payment of all amounts owing to the Series 2006-[    ] Noteholders
that are payable from the Reserve Account as provided herein, shall withdraw from the Reserve Account and pay first, to the O/C Holder for reduction of the O/C Amount until reduced to zero and second, to the Transferor, all amounts, if any, on
deposit in the Reserve Account and the Reserve Account shall be deemed to have terminated for purposes of this Indenture Supplement; provided, however, that following the occurrence of an Event of Default with respect to Series
2006-[    ] and acceleration of the maturity of the Series 2006-[    ] Notes pursuant to Section 5.03 of the Indenture, the Servicer shall withdraw from the Reserve Account all amounts on deposit therein
and the Indenture Trustee or the Servicer shall deposit such amounts in the Collection Account for distribution to the Series 2006-[    ] Noteholders in accordance with Section 5.02 to fund any shortfalls in amounts owed to
such Series 2006-[    ] Noteholders. 
 Section 4.12 Determination of LIBOR. 
 (a) On each LIBOR Determination Date, the Indenture Trustee 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 Indenture Trustee 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 
  

 28 

 rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by major banks in New York City,
selected by the Servicer, 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. 
 (b) The Class A Note Interest Rate, the Class B Note Interest Rate and the Class C 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 or such other address and telephone number as shall be designated by the Indenture Trustee for such purpose by prior written
notice by the Indenture Trustee to each Series 2006-[    ] Noteholder from time to time. 
 (c) On each LIBOR
Determination Date after the Closing Date, the Indenture Trustee shall send to the Servicer, by facsimile transmission, notification of LIBOR for the following Interest Period. LIBOR for the first Interest Period shall be
    %. 
 Section 4.13 Investment Instructions. Any investment instructions required to be given to
the Indenture Trustee pursuant to the terms hereof must be given to the Indenture Trustee no later than 12:00 p.m. (New York City time) on the date such investment is to be made. In the event the Indenture Trustee receives such investment
instruction later than such time, the Indenture Trustee may, but shall have no obligation to, make such investment. In the event the Indenture Trustee is unable to make an investment required in an investment instruction received by the Indenture
Trustee after 12:00 p.m. (New York City time) on such day, such investment shall be made by the Indenture Trustee on the next succeeding Business Day. In no event shall the Indenture Trustee be liable for any investment not made pursuant to
investment instructions received after 12:00 p.m. (New York City time) on the day such investment is requested to be made. 
 Section 4.14 Exchange of Notes for Transferor Amount. If the Transferor purchases Series 2006-[    ] Notes from Series 2006-[    ] Noteholders, the Transferor may, on any Distribution Date
(after giving effect to all required allocations and payments on such Distribution Date), cancel such purchased Series 2006-[    ] Notes by delivering a written request to the Indenture Trustee to do so; provided, however, that
the Transferor may only cancel Class A Notes, Class B Notes or Class C Notes it has purchased if the Rating Agency Condition has been satisfied. The Transferor may in connection with such cancellation reduce a portion of the O/C Amount and may
(but shall not be required to) cancel such portion of the O/C Amount, provided that the reduction in the O/C Amount resulting from such cancellation may not result in the O/C Amount being less than the Required O/C Amount. As a result of any
cancellation of Series 2006-[    ] Notes pursuant to this Section, (a) the Invested Amount shall be reduced by (i) the aggregate principal amount of such purchased Series 2006-[    ] Notes and
(ii) the reduction in the O/C Amount and (b) the Transferor Amount shall be increased in an amount equal to such reduction in the Invested Amount. 
 [END OF ARTICLE IV] 
  

 29 

 ARTICLE V 
 DELIVERY OF SERIES 2006-[    ] NOTES; 
 DISTRIBUTIONS; REPORTS TO SERIES
2006-[    ] NOTEHOLDERS 
 Section 5.01 Delivery and Payment for the Series 2006-[    ]
Notes. 
 With respect to the Series 2006-[    ] Notes which are in certificated form, the Issuer shall execute and
the Indenture Trustee shall authenticate the Series 2006-[    ] Notes in accordance with Section 2.03 of the Indenture. The Indenture Trustee shall deliver those Series 2006-[    ] Notes to or upon the
order of the Trust when so authenticated. 
 Section 5.02 Distributions. 
 (a) On each Distribution Date, the Paying Agent shall distribute to each Class A Noteholder of record on the related Record Date (other than as
provided in Section 11.02 of the Indenture) such Class A Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class A Notes pursuant
to this Indenture Supplement. 
 (b) On each Distribution Date, the Paying Agent shall distribute to each Class A Noteholder of record
on the related Record Date such Class A Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay principal of the Class A Notes pursuant to this Indenture
Supplement. 
 (c) On each Distribution Date, the Paying Agent shall distribute to each Class B Noteholder of record on the related Record
Date (other than as provided in Section 11.02 of the Indenture) such Class B Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class B
Notes pursuant to this Indenture Supplement. 
 (d) On each Distribution Date, the Paying Agent shall distribute to each Class B Noteholder
of record on the related Record Date such Class B Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay principal of the Class B Notes pursuant to this Indenture
Supplement. 
 (e) On each Distribution Date, the Paying Agent shall distribute to each Class C Noteholder of record on the related Record
Date (other than as provided in Section 11.02 of the Indenture) such Class C Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest on the Class C
Notes pursuant to this Indenture Supplement. 
 (f) On each Distribution Date, the Paying Agent shall distribute to each Class C Noteholder
of record on the related Record Date such Class C Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay principal of the Class C Notes pursuant to this Indenture
Supplement. 
  

 30 

 (g) On each Distribution Date, the Paying Agent shall distribute to the O/C Holder, in immediately
available funds, the amounts held by the Paying Agent that are allocated and available on such Distribution Date to reduce the O/C Amount pursuant to this Indenture Supplement. 
 (h) The distributions to be made pursuant to this Section 5.02 are subject to the provisions of Sections 2.06, 6.01 and 7.01 of the Transfer and
Servicing Agreement, Section 11.02 of the Indenture and Section 7.01 of this Indenture Supplement. 
 (i) Except as provided in
Section 11.02 of the Indenture with respect to a final distribution, distributions to Series 2006-[    ] Noteholders hereunder shall be made by (i) check mailed to each Series 2006-[    ] Noteholder
(at such Noteholder’s address as it appears in the Note Register), except that with respect to any Series 2006-[    ] Notes registered in the name of the nominee of a Clearing Agency, such distribution shall be made in
immediately available funds and (ii) without presentation or surrender of any Series 2006-[    ] Note or the making of any notation thereon. 
 Section 5.03 Reports and Statements to Series 2006-[    ] Noteholders. 
 (a)
Not later than the second Business Day preceding each Distribution Date, the Servicer shall deliver to the Owner Trustee, the Indenture Trustee, the Paying Agent and each Rating Agency (i) a statement substantially in the form of Exhibit B
prepared by the Servicer and (ii) a certificate of an Authorized Officer substantially in the form of Exhibit C; provided that the Servicer may amend the form of Exhibit B and Exhibit C, from time to time. 
 (b) A copy of each statement provided pursuant to paragraph (a) may be obtained by any Series 2006-[    ] Noteholder by a
request in writing to the Servicer. 
 (c) On or before January 31 of each calendar year, beginning with calendar year 2007, the Paying
Agent, on behalf of the Indenture Trustee, shall furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Series 2006-[    ] Noteholder, a statement prepared by the Servicer
containing the information as is required to be provided by an issuer of indebtedness under the Code. Such obligation of the Paying Agent shall be deemed to have been satisfied to the extent that substantially comparable information shall be
provided by the Paying Agent pursuant to any requirements of the Code as from time to time in effect. 
 [END OF ARTICLE V] 
  

 31 

 ARTICLE VI 
 SERIES 2006-[    ] AMORTIZATION EVENTS 
 Section 6.01 Series
2006-[    ] Amortization Events. If any one of the following events shall occur with respect to Series 2006-[    ]: 
 (a) failure on the part of the Transferor (i) to make any payment or deposit required by the terms of the Transfer and Servicing Agreement, the Indenture or this Indenture Supplement on or before the date
occurring five Business Days after the date such payment or deposit is required to be made therein or herein or (ii) duly to observe or perform in any material respect any other covenants or agreements of the Transferor set forth in the
Transfer and Servicing Agreement, the Indenture or this Indenture Supplement, which failure has an Adverse Effect on the Series 2006-[    ] Noteholders and which continues unremedied and continues to materially and adversely
affect the interests of the Series 2006-[    ] Noteholders for a period of 60 days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the
Indenture Trustee, or to the Transferor and the Indenture Trustee by any Holder of the Series 2006-[    ] Notes; 
 (b)
any representation or warranty made by the Transferor in the Transfer and Servicing Agreement, or any information contained in a computer file or microfiche list required to be delivered by the Transferor pursuant to Section 2.01 or
Section 2.09(h) of the Transfer and Servicing Agreement shall prove to have been incorrect in any material respect when made or when delivered, which continues to be incorrect in any material respect for a period of 60 days after the date on
which written notice of such failure, requiring the same to be remedied, shall have been given to the Transferor by the Indenture Trustee, or to the Transferor and the Indenture Trustee by any Holder of the Series 2006-[    ]
Notes and as a result of which an Adverse Effect occurs with respect to the Series 2006-[    ] Noteholders and such Adverse Effect continues for the designated period; provided, however, that a Series
2006-[    ] Amortization Event pursuant to this Section 6.01(b) shall not be deemed to have occurred hereunder if the Transferor has accepted reassignment of the related Receivable, or all of such Receivables, if applicable,
during such period in accordance with the provisions of the Transfer and Servicing Agreement; 
 (c) a failure by the Transferor to convey
Receivables in Additional Accounts or Participation Interests to the Trust within five Business Days after the day on which it is required to convey such Receivables or Participation Interests pursuant to Section 2.09(a) of the Transfer and
Servicing Agreement; 
 (d) any Servicer Default shall occur which has an Adverse Effect on the Series 2006-[    ]
Noteholders; 
 (e) the average Series Portfolio Yield for any three consecutive Due Periods is reduced to a rate which is less than the
average of the Base Rates for such period; 
  

 32 

 (f) the Class A Note Principal Balance, the Class B Note Principal Balance or the Class C Note
Principal Balance shall not be paid in full on the Expected Principal Payment Date; or 
 (g) without limiting the foregoing, the occurrence
of an Event of Default with respect to Series 2006-[    ] and an acceleration of the maturity of the Series 2006-[    ] Notes pursuant to Section 5.03 of the Indenture; 
 then, in the case of any event described in subparagraph (a), (b) or (d) after the applicable grace period, if any, set forth in such subparagraphs, either the
Indenture Trustee or the Holders of Series 2006-[    ] Notes evidencing more than 50% of the aggregate Outstanding Amount of Series 2006-[    ] Notes by notice then given in writing to the Transferor and the
Servicer (and to the Indenture Trustee if given by the Series 2006-[    ] Noteholders) may declare that an amortization event (a “Series 2006-[    ] Amortization Event”) has occurred as
of the date of such notice, and, in the case of any event described in subparagraph (c), (e), (f) or (g), a Series 2006-[    ] Amortization Event shall occur without any notice or other action on the part of the Indenture
Trustee or the Series 2006-[    ] Noteholders immediately upon the occurrence of such event. 
 [END OF ARTICLE VI]

  

 33 

 ARTICLE VII 
 REDEMPTION OF SERIES 2006-[    ] NOTES; SERIES FINAL MATURITY; FINAL DISTRIBUTIONS 
 Section 7.01 Optional Redemption of Series 2006-[    ] Notes. 
 (a) On any day occurring on or after
the date on which the Note Principal Balance is reduced to 10% or less of the sum of the Class A Note Initial Principal Balance, the Class B Note Initial Principal Balance and the Class C Note Initial Principal Balance, the Transferor at the
request of the Servicer shall redeem the Series 2006-[    ] Notes and the O/C Amount, at a purchase price equal to (i) if such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if
such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day. 
 (b) The Transferor shall give
the Servicer and the Indenture Trustee at least 30 days’ prior written notice of the date on which the Transferor intends to exercise such optional redemption. Not later than 1:00 p.m., New York City time, on such day the Transferor shall
deposit into the Collection Account in immediately available funds the Reassignment Amount. Such redemption option is subject to payment in full of the Reassignment Amount. Following such deposit, the Invested Amount for Series
2006-[    ] shall be reduced to zero and the Series 2006-[    ] Noteholders and the O/C Holder shall have no further interest in or claim against the Trust. The Reassignment Amount shall be distributed as set
forth in Section 7.02(a). 
 Section 7.02 Series Final Maturity. 
 (a) The amount to be paid by the Transferor with respect to Series 2006-[    ] in connection with (i) a reassignment of
Receivables to the Transferor pursuant to Section 2.06 of the Transfer and Servicing Agreement or (ii) an Optional Redemption of the Notes pursuant to Section 7.01, shall be the Reassignment Amount for the first Distribution Date
following the Due Period in which the reassignment obligation arises under the Transfer and Servicing Agreement. With respect to the Reassignment Amount deposited into the Collection Account pursuant to Section 7.01 herein or Section 2.06
of the Transfer and Servicing Agreement or the proceeds available to the Series [    ] Noteholders from any Foreclosure Remedy pursuant to Section 5.05 of the Indenture, the Indenture Trustee shall, in accordance with the
written direction of the Servicer, not later than 1:00 p.m. New York City time, on the related Distribution Date, make deposits or distributions of the following amounts (in the priority set forth below and, in each case after giving effect to any
deposits and distributions otherwise to be made on such date) in immediately available funds: 
 (i) (x) the Class A Note
Principal Balance on such Distribution Date will be distributed to the Paying Agent for payment to the Class A Noteholders and (y) an amount equal to the sum of (A) Class A Monthly Interest for such Distribution Date,
(B) any Class A Monthly Interest previously due but not distributed to the Class A Noteholders on a prior Distribution Date and (C) the amount of Class A Additional Interest, if any, for such Distribution Date and any
Class A Additional Interest previously due but not distributed to the Class A Noteholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to the Class A Noteholders; 
  

 34 

 (ii)(x) the Class B Note Principal Balance on such Distribution Date will be distributed
to the Paying Agent for payment to the Class B Noteholders and (y) an amount equal to the sum of (A) Class B Monthly Interest for such Distribution Date, (B) any Class B Monthly Interest previously due but not distributed to the Class
B Noteholders on a prior Distribution Date and (C) the amount of Class B Additional Interest, if any, for such Distribution Date and any Class B Additional Interest previously due but not distributed to the Class B Noteholders on any prior
Distribution Date, will be distributed to the Paying Agent for payment to the Class B Noteholders; 
 (iii)(x) the Class C
Note Principal Balance on such Distribution Date will be distributed to the Paying Agent for payment to the Class C Noteholders and (y) an amount equal to the sum of (A) Class C Monthly Interest for such Distribution Date, (B) any
Class C Monthly Interest previously due but not distributed to the Class C Noteholders on a prior Distribution Date and (C) the amount of Class C Additional Interest, if any, for such Distribution Date and any Class C Additional Interest
previously due but not distributed to the Class C Noteholders on any prior Distribution Date, will be distributed to the Paying Agent for payment to the Class C Noteholders; and 
 (iv) the O/C Amount on such Distribution Date will be distributed to the Paying Agent for payment to the O/C Holder. 
 (b) Notwithstanding anything to the contrary in this Indenture Supplement, the Indenture or the Transfer and Servicing Agreement, all amounts distributed
to the Paying Agent pursuant to Section 7.02(a) for payment to the Series 2006-[    ] Noteholders shall be deemed distributed in full to the Series 2006-[    ] Noteholders on the date on which such funds
are distributed to the Paying Agent pursuant to this Section and shall be deemed to be a final distribution pursuant to Section 11.02 of the Indenture. 
 [END OF ARTICLE VII] 
  

 35 

 ARTICLE VIII 
 MISCELLANEOUS PROVISIONS 
 Section 8.01 Ratification of Indenture. As supplemented by this
Indenture Supplement, the Indenture is in all respects ratified and confirmed and the Indenture as so supplemented by this Indenture Supplement shall be read, taken and construed as one and the same instrument. 
 Section 8.02 Counterparts. This Indenture Supplement may be executed in two or more counterparts, and by different parties on separate
counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. 
 Section 8.03
GOVERNING LAW. THIS INDENTURE SUPPLEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, 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 8.04 Transfer of the O/C Amount. Notwithstanding anything to the contrary in
this Indenture Supplement, no interest in the O/C Amount may be directly or indirectly sold, assigned, pledged, hypothecated, exchanged, participated or otherwise transferred (other than in connection with the transfer upon initial issuance to the
Indenture Trustee as security for the Series 2006-[    ] Notes) except to a Person who is a “United States person” for United States federal income tax purposes and only upon the prior delivery of a Tax Opinion to the
Indenture Trustee, and any such transfer in violation of these requirements shall be null and void ab initio. 
 Section 8.05
Transfer Restrictions. Each purchaser or transferee of a Note that is a Plan or a person acting on behalf of or investing the assets of a Plan shall be deemed to represent that its purchase and continued holding of the Note will be covered by
a U.S. Department of Labor prohibited transaction class exemption. 
 Section 8.06 Certain Commercial Law Representations and
Warranties. 
 (a) The Issuer hereby represents and warrants to the Indenture Trustee, as of the Closing Date, that: 
 (i) this Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables in favor of the
Indenture Trustee on behalf of the Holders of the Notes including the Series 2006-[    ] Noteholders, which security interest is prior to all other liens, and is enforceable as such against creditors of and purchasers from the
Issuer; 
 (ii) the Receivables constitute “accounts” or “general intangibles” within the meaning of the
applicable UCC; 
 (iii) at the time of its grant of any security interest in the Receivables pursuant to this Agreement, the
Issuer owned and had good and marketable title to the Receivables free and clear of any lien, claim or encumbrance of any Person; 
  

 36 

 (iv) the Issuer has caused or will have caused, within ten (10) days of the initial
execution of this Agreement, 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 Receivables granted to the Indenture
Trustee on behalf of the Holders of the Notes including the Series 2006-[    ] Noteholders pursuant to this Agreement; and 
 (v) other than the security interest granted to the Indenture Trustee pursuant to this Agreement, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed the Receivables. The
Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of the Receivables other than any financing statement relating to the security interest granted to the Indenture
Trustee pursuant to this Agreement or that has been terminated. The Issuer is not aware of any judgment or tax lien filings against the Issuer. 
 (b) The Indenture Trustee may not waive a breach of any of the foregoing representations unless prior to such waiver (1) it has notified Standard & Poor’s of its intention to waive such breach and Standard &
Poor’s has informed the Indenture Trustee, and the Indenture Trustee has informed the Series 2006-[    ] Noteholders, as to whether such waiver will result in a downgrade of the Series 2006-[    ] Notes
and (2) the Indenture Trustee has subsequently received the unanimous consent of the Series 2006-[    ] Noteholders to such waiver. 
 (c) The representations and warranties set forth in this Section 8.06 shall survive until the final payment on the Series 2006-1 Notes shall be distributed in full to the Series 2006-[    ]
Noteholders. 
 [END OF ARTICLE VIII] 
 [SIGNATURE PAGE FOLLOWS] 
  

 37 

 IN WITNESS WHEREOF, the undersigned have caused this Indenture Supplement to be duly executed and
delivered by their respective duly authorized officers on the day and year first above written. 
  

			
	WILMINGTON TRUST COMPANY,
	not in its individual capacity, but solely as
	Owner Trustee on behalf of the
	 HSBC PRIVATE LABEL CREDIT CARD
 MASTER NOTE
TRUST (USA) I

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 U.S. BANK NATIONAL ASSOCIATION,
 not in its
individual capacity, but solely as

	Indenture Trustee and Securities Intermediary
		
	By:	 	  

	Name:	 	
	Title:	 	

 [2006-[    ] Indenture Supplement] 
  

 38 

 EXHIBIT A-1 
  

 

					
	REGISTERED	  	$	  	___________
			
	No. R-	  	CUSIP NO.	  	___________

 Unless this Class A Note is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to HSBC Private Label Credit Card Master Note Trust (USA) I or its agent for registration of transfer, exchange or payment, and any note issued is registered in the name of
CEDE & CO. or in such other name as is requested by an authorized representative of DTC (and any payment is made to CEDE & CO. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, CEDE & CO., has an interest herein. 
 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I, SERIES 2006-[    ] 
 FORM OF
CLASS A SERIES 2006-[    ] FLOATING RATE ASSET BACKED NOTE 
 Wilmington Trust Company, acting not in its individual
capacity, but solely as owner trustee of HSBC Private Label Credit Card Master Note Trust (USA) I (herein referred to as the “Issuer” or the “Trust”), a Delaware common law trust governed by a Amended
and Restated Trust Agreement, dated as of August 11, 2006, for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, the principal sum of $
[            ], on the Series 2006-[    ] Final Maturity Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest on the unpaid
principal amount of this Note at the Class A Note Interest Rate on each Distribution Date until the principal amount of this Note is paid in full. Interest on this Note will accrue for each Distribution Date from and including the most recent
Distribution Date on which interest has been paid to but excluding such Distribution Date or, for the initial Distribution Date, from and including the Closing Date to but excluding such Distribution Date. Interest will be computed on the basis of a
360-day year and the actual number of days elapsed. Principal of this Note shall be paid in the manner specified on the reverse hereof. 
 The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note. 
 Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by
manual signature, this Note shall not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any purpose. 
  

 A-1-1 

 IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be duly executed. 
  

			
	WILMINGTON TRUST COMPANY, not in
	its individual capacity, but solely as
	Owner Trustee on behalf of the
	 HSBC PRIVATE LABEL CREDIT CARD
 MASTER NOTE
TRUST (USA) I

		
	By:	 	  

	Name:	 	
	Title:	 	

 Dated:
                    , 20     
  

 A-1-2 

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Class A Notes described in the within-mentioned Indenture. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,

	 as Indenture Trustee

		
	 By:
	 	  

		 	Authorized Signatory

  

 A-1-3 

 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I, SERIES 2006-[    ]

 CLASS A SERIES 2006-[    ] FLOATING RATE ASSET BACKED NOTE 
 Summary of Terms and Conditions 
 This Class A Note is one of a duly authorized
issue of Notes of the Issuer, designated as HSBC Private Label Credit Card Master Note Trust (USA) I, Series 2006-[    ] (the “Notes”), issued under a Amended and Restated Master Indenture, dated as of
August 11, 2006 (the “Master Indenture”), between the Issuer and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”), as supplemented by the Indenture Supplement, dated
as of             , 20     (the “Indenture Supplement”), and representing the right to receive certain payments from the Issuer.
The term “Indenture,” unless the context otherwise requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms of the Indenture. All terms used in this Note that are
defined in the Indenture shall have the meanings assigned to them in or pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall control. 
 The Noteholder, by its acceptance of this Note, agrees that it will look solely to the property of the Trust allocated to the payment of this Note for
payment hereunder and that the Indenture Trustee is not liable to the Noteholders for any amount payable under the Note or the Indenture or, except as expressly provided in the Indenture, subject to any liability under the Indenture. 
 This Note does not purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee. 
 The Class A Note
Initial Principal Balance is $[            ]. 
 The Class A Note
Principal Balance will be determined from time to time by the Indenture Trustee in accordance with the Indenture. 
 Payments of principal of
the Notes shall be payable in accordance with the provisions of the Indenture. 
 Subject to the terms and conditions of the Indenture, the
Transferor may, from time to time, direct the Owner Trustee, on behalf of the Trust, to issue one or more new Series of Notes. 
 On each
Distribution Date, the Paying Agent shall distribute to each Class A Noteholder of record on the related Record Date (except for the final distribution in respect of this Class A Note) such Class A Noteholder’s pro rata share of
the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest and principal on the Class A Notes pursuant to the Indenture Supplement. Except as provided in the Indenture with respect to a final
distribution, distributions to Series 2006-[    ] Noteholders shall be made by (i) check mailed to each Series 2006-[    ] Noteholder (at such Noteholder’s address as it appears in the Note
Register), except that with respect to any Series 2006-[    ] Notes registered in the name of 
  

 A-1-4 

 the nominee of a Clearing Agency, such distribution shall be made in immediately available funds and (ii) without
presentation or surrender of any Series 2006-[    ] Note or the making of any notation thereon. Final payment of this Class A Note will be made only upon presentation and surrender of this Class A Note at the office or
agency specified in the notice of final distribution delivered by the Indenture Trustee to the Series 2006-[    ] Noteholders in accordance with the Indenture. 
 On any day occurring on or after the date on which the outstanding principal balance of the Series 2006-[    ] Notes is reduced to
10% or less of the initial outstanding principal balance of the Series 2006-[    ] Notes, the Transferor shall have the option to redeem the Series 2006-[    ] Notes, at a purchase price equal to (i) if
such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day. 
 THIS CLASS A NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE TRANSFEROR, HSBC FINANCE CORPORATION, HSBC BANK NEVADA, NATIONAL
ASSOCIATION, OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. 
 Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against the Issuer or the Transferor, or join in
instituting against the Issuer or the Transferor, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law. 
 Except as otherwise provided in the Indenture Supplement, the Class A Notes are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000. The transfer of this Class A Note shall be registered in the Note Register upon surrender of this Class A Note for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Class A Noteholder or such Class A Noteholder’s attorney, and duly authorized
in writing with such signature guaranteed, and thereupon one or more new Class A Notes in any authorized denominations of like aggregate principal amount will be issued to the designated transferee or transferees. 
 As provided in the Indenture and subject to certain limitations therein set forth, Class A Notes are exchangeable for new Class A Notes in any
authorized denominations and of like aggregate principal amount, upon surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge may be imposed for any such exchange but the Issuer or
Transfer Agent and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
 The Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, Transferor or the Indenture Trustee shall treat the person in whose name this Class A Note is registered as the owner hereof for all
purposes, and neither the Issuer, the Transferor, the Indenture Trustee nor any agent of the Issuer, Transferor or the Indenture Trustee shall be affected by notice to the contrary. 
  

 A-1-5 

 THIS CLASS A NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, 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. 
  

 A-1-6 

 ASSIGNMENT 
 Social Security or other identifying number of assignee                      
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                                        
                             
 (name and address of assignee)     
 the within note and all rights thereunder, and hereby irrevocably
constitutes and appoints                     , attorney, to transfer said note on the books kept for registration thereof, with full power of
substitution in the premises. 
  

			
	Dated:	 	 1

		 	Signature Guaranteed:
		
		 	  

		
	____________________________________	 	

  

	1	NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within note in every particular,
without alteration, enlargement or any change whatsoever. 

  

 A-1-7 

 EXHIBIT A-2 
  

					
	REGISTERED	  	$	 	___________
			
	No. R-	  	CUSIP NO.	 	___________

 Unless this Class B Note is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to HSBC Private Label Credit Card Master Note Trust (USA) I or its agent for registration of transfer, exchange or payment, and any note issued is registered in the name
CEDE & CO. or in such other name as is requested by an authorized representative of DTC (and any payment is made to CEDE & CO. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, CEDE & CO., has an interest herein. 
 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I, SERIES 2006-[    ] 
 FORM OF
CLASS B SERIES 2006-[    ] FLOATING RATE ASSET BACKED NOTE 
 Wilmington Trust Company, acting not in its individual
capacity, but solely as owner trustee of HSBC Private Label Credit Card Master Note Trust (USA) I (herein referred to as the “Issuer” or the “Trust”), a Delaware common law trust governed by a Amended
and Restated Trust Agreement, dated as of August 11, 2006, for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, the principal sum of
$[            ], on the Series 2006-[    ] Final Maturity Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest on the unpaid
principal amount of this Note at the Class B Note Interest Rate on each Distribution Date until the principal amount of this Note is paid in full. Interest on this Note will accrue for each Distribution Date from and including the most recent
Distribution Date on which interest has been paid to but excluding such Distribution Date or, for the initial Distribution Date, from and including the Closing Date to but excluding such Distribution Date. Interest will be computed on the basis of a
360-day year and the actual number of days elapsed. Principal of this Note shall be paid in the manner specified on the reverse hereof. 
 The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note. 
 Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by
manual signature, this Note shall not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any purpose. 
  

 A-2-1 

 IN WITNESS WHEREOF, the Issuer has caused this Class B Note to be duly executed. 
  

			
	WILMINGTON TRUST COMPANY,
	 not in its individual capacity, but
 solely
as Owner Trustee on behalf of the

	 HSBC PRIVATE LABEL CREDIT CARD
 MASTER NOTE
TRUST (USA) I

		
	By:	 	  

	Name:	 	
	Title:	 	

 Dated:
                    , 20     
  

 A-2-2 

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Class B Notes described in the within-mentioned Indenture. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,

	 as Indenture Trustee

		
	 By:
	 	  

		 	Authorized Signatory

  

 A-2-3 

 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I, SERIES 2006-[    ]

 CLASS B SERIES 2006-[    ] FLOATING RATE ASSET BACKED NOTE 
 Summary of Terms and Conditions 
 This Class B Note is one of a duly authorized issue
of Notes of the Issuer, designated as HSBC Private Label Credit Card Master Note Trust (USA) I, Series 2006-[    ] (the “Notes”), issued under a Amended and Restated Master Indenture, dated as of
August 11, 2006 (the “Master Indenture”), between the Issuer and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”), as supplemented by the Indenture Supplement, dated
as of                     , 20     (the “Indenture Supplement”), and representing the right
to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms of the
Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control. 
 The Noteholder, by its acceptance of this Note, agrees that it will look solely to the property of the Trust allocated to the
payment of this Note for payment hereunder and that the Indenture Trustee is not liable to the Noteholders for any amount payable under the Note or the Indenture or, except as expressly provided in the Indenture, subject to any liability under the
Indenture. 
 This Note does not purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee. 
 The Class B Note Initial Principal Balance is $[            ]. The Class B Note Principal Balance will be determined from time to time by the Indenture Trustee in accordance
with the Indenture. 
 Payments of principal of the Notes shall be payable in accordance with the provisions of the Indenture. 
 Subject to the terms and conditions of the Indenture, the Transferor may, from time to time, direct the Owner Trustee, on behalf of the Trust, to issue
one or more new Series of Notes. 
 On each Distribution Date, the Paying Agent shall distribute to each Class B Noteholder of record on the
related Record Date (except for the final distribution in respect of this Class B Note) such Class B Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest
and principal on the Class B Notes pursuant to the Indenture Supplement. Except as provided in the Indenture with respect to a final distribution, distributions to Series 2006-[    ] Noteholders shall be made by (i) check
mailed to each Series 2006-[    ] Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with respect to any Series 2006-[    ] Notes registered in the name of

  

 A-2-4 

 the nominee of a Clearing Agency, such distribution shall be made in immediately available funds and (ii) without
presentation or surrender of any Series 2006-[    ] Note or the making of any notation thereon. Final payment of this Class B Note will be made only upon presentation and surrender of this Class B Note at the office or agency
specified in the notice of final distribution delivered by the Indenture Trustee to the Series 2006-[    ] Noteholders in accordance with the Indenture. 
 On any day occurring on or after the date on which the outstanding principal balance of the Series 2006-[    ] Notes is reduced to
10% or less of the initial outstanding principal balance of the Series 2006-[    ] Notes, the Transferor shall have the option to redeem the Series 2006-[    ] Notes, at a purchase price equal to (i) if
such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day. 
 THIS CLASS B NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE TRANSFEROR, HSBC FINANCE CORPORATION, HSBC BANK NEVADA, NATIONAL
ASSOCIATION, OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. 
 Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against the Issuer or the Transferor, or join in
instituting against the Issuer or the Transferor, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law. 
 Except as otherwise provided in the Indenture Supplement, the Class B Notes are issuable only in minimum denominations of $1,000 and integral multiples
of $1,000. The transfer of this Class B Note shall be registered in the Note Register upon surrender of this Class B Note for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a written
instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Class B Noteholder or such Class B Noteholder’s attorney, and duly authorized in writing with such signature
guaranteed, and thereupon one or more new Class B Notes in any authorized denominations of like aggregate principal amount will be issued to the designated transferee or transferees. 
 As provided in the Indenture and subject to certain limitations therein set forth, Class B Notes are exchangeable for new Class B Notes in any authorized
denominations and of like aggregate principal amount, upon surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge may be imposed for any such exchange but the Issuer or Transfer Agent
and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
 The Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, Transferor or the Indenture Trustee shall treat the person in whose name this Class B Note is registered as the owner hereof for all purposes, and neither the
Issuer, the Transferor, the Indenture Trustee nor any agent of the Issuer, Transferor or the Indenture Trustee shall be affected by notice to the contrary. 
  

 A-2-5 

 THIS CLASS B NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, 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. 
  

 A-2-6 

 ASSIGNMENT 
 Social Security or other identifying number of assignee              
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                                        
                             
 (name and address of assignee)     
 the within note and all rights thereunder, and hereby irrevocably
constitutes and appoints                     , attorney, to transfer said note on the books kept for registration thereof, with full power of
substitution in the premises. 
  

			
	 Dated:
	  	 2

		  	 Signature Guaranteed:

		  	  

	__________________	  	

	2	NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within note in every particular,
without alteration, enlargement or any change whatsoever. 

  

 A-2-7 

 EXHIBIT A-3 
  

					
	REGISTERED	  	$	  	___________
			
	No. R-	  	CUSIP NO.	  	___________

 Unless this Class C Note is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to HSBC Private Label Credit Card Master Note Trust (USA) I or its agent for registration of transfer, exchange or payment, and any note issued is registered in the name
CEDE & CO. or in such other name as is requested by an authorized representative of DTC (and any payment is made to CEDE & CO. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, CEDE & CO., has an interest herein. 
 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I, SERIES 2006-[    ] 
 FORM OF
CLASS C SERIES 2006-[    ] FLOATING RATE ASSET BACKED NOTE 
 Wilmington Trust Company, acting not in its individual
capacity, but solely as owner trustee of HSBC Private Label Credit Card Master Note Trust (USA) I (herein referred to as the “Issuer” or the “Trust”), a Delaware common law trust governed by a Amended
and Restated Trust Agreement, dated as of August 11, 2006, for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, the principal sum of
$[            ], on the Series 2006-[    ] Final Maturity Date, except as otherwise provided below or in the Indenture. The Issuer will pay interest on the unpaid
principal amount of this Note at the Class C Note Interest Rate on each Distribution Date until the principal amount of this Note is paid in full. Interest on this Note will accrue for each Distribution Date from and including the most recent
Distribution Date on which interest has been paid to but excluding such Distribution Date or, for the initial Distribution Date, from and including the Closing Date to but excluding such Distribution Date. Interest will be computed on the basis of a
360-day year and the actual number of days elapsed. Principal of this Note shall be paid in the manner specified on the reverse hereof. 
 The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note. 
 Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by
manual signature, this Note shall not be entitled to any benefit under the Indenture or the Indenture Supplement referred to on the reverse hereof, or be valid for any purpose. 
  

 A-3-1 

 IN WITNESS WHEREOF, the Issuer has caused this Class C Note to be duly executed. 
  

			
	WILMINGTON TRUST COMPANY,
	 not in its individual capacity, but
 solely
as Owner Trustee on behalf of the

	 HSBC PRIVATE LABEL CREDIT CARD
 MASTER NOTE
TRUST (USA) I

		
	By:	 	  

	Name:	 	
	Title:	 	

 Dated:
                    , 20     
  

 A-3-2 

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Class C Notes described in the within-mentioned Indenture. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,

	 as Indenture Trustee

		
	 By:
	 	  

		 	Authorized Signatory

  

 A-3-3 

 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I, SERIES 2006-[    ]

 CLASS C SERIES 2006-[    ] FLOATING RATE ASSET BACKED NOTE 
 Summary of Terms and Conditions 
 This Class C Note is one of a duly authorized issue
of Notes of the Issuer, designated as HSBC Private Label Credit Card Master Note Trust (USA) I, Series 2006-[    ] (the “Notes”), issued under a Amended and Restated Master Indenture, dated as of
August 11, 2006 (the “Master Indenture”), between the Issuer and U.S Bank National Association, as indenture trustee (the “Indenture Trustee”), as supplemented by the Indenture Supplement, dated
as of                     , 20     (the “Indenture Supplement”), and representing the right
to receive certain payments from the Issuer. The term “Indenture,” unless the context otherwise requires, refers to the Master Indenture as supplemented by the Indenture Supplement. The Notes are subject to all of the terms of the
Indenture. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in or pursuant to the Indenture. In the event of any conflict or inconsistency between the Indenture and this Note, the Indenture shall
control. 
 The Noteholder, by its acceptance of this Note, agrees that it will look solely to the property of the Trust allocated to the
payment of this Note for payment hereunder and that the Indenture Trustee is not liable to the Noteholders for any amount payable under the Note or the Indenture or, except as expressly provided in the Indenture, subject to any liability under the
Indenture. 
 This Note does not purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Indenture Trustee. 
 The Class C Note Initial Principal Balance is $[            ]. The Class C Note Principal Balance will be determined from time to time by the Indenture Trustee in accordance
with the Indenture. 
 Payments of principal of the Notes shall be payable in accordance with the provisions of the Indenture. 
 Subject to the terms and conditions of the Indenture, the Transferor may, from time to time, direct the Owner Trustee, on behalf of the Trust, to issue
one or more new Series of Notes. 
 On each Distribution Date, the Paying Agent shall distribute to each Class C Noteholder of record on the
related Record Date (except for the final distribution in respect of this Class C Note) such Class C Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Distribution Date to pay interest
and principal on the Class C Notes pursuant to the Indenture Supplement. Except as provided in the Indenture with respect to a final distribution, distributions to Series 2006-[    ] Noteholders shall be made by (i) check
mailed to each Series 2006-[    ] Noteholder (at such Noteholder’s address as it appears in the Note Register), except that with respect to any Series 2006-[    ] Notes registered in the name of

  

 A-3-4 

 the nominee of a Clearing Agency, such distribution shall be made in immediately available funds and (ii) without
presentation or surrender of any Series 2006-[    ] Note or the making of any notation thereon. Final payment of this Class C Note will be made only upon presentation and surrender of this Class C Note at the office or agency
specified in the notice of final distribution delivered by the Indenture Trustee to the Series 2006-[    ] Noteholders in accordance with the Indenture. 
 On any day occurring on or after the date on which the outstanding principal balance of the Series 2006-[    ] Notes is reduced to
10% or less of the initial outstanding principal balance of the Series 2006-[    ] Notes, the Transferor shall have the option to redeem the Series 2006-[    ] Notes, at a purchase price equal to (i) if
such day is a Distribution Date, the Reassignment Amount for such Distribution Date or (ii) if such day is not a Distribution Date, the Reassignment Amount for the Distribution Date following such day. 
 THIS CLASS C NOTE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN, THE TRANSFEROR, HSBC FINANCE CORPORATION, HSBC BANK NEVADA, NATIONAL
ASSOCIATION, OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY. 
 Each Noteholder, by accepting a Note, hereby covenants and agrees that it will not at any time institute against the Issuer or the Transferor, or join in
instituting against the Issuer or the Transferor, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law. 
 Except as otherwise provided in the Indenture Supplement, the Class C Notes are issuable only in minimum denominations of $1,000 and integral multiples
of $1,000. The transfer of this Class C Note shall be registered in the Note Register upon surrender of this Class C Note for registration of transfer at any office or agency maintained by the Transfer Agent and Registrar accompanied by a written
instrument of transfer, in a form satisfactory to the Indenture Trustee or the Transfer Agent and Registrar, duly executed by the Class C Noteholder or such Class C Noteholder’s attorney, and duly authorized in writing with such signature
guaranteed, and thereupon one or more new Class C Notes in any authorized denominations of like aggregate principal amount will be issued to the designated transferee or transferees. 
 As provided in the Indenture and subject to certain limitations therein set forth, Class C Notes are exchangeable for new Class C Notes in any authorized
denominations and of like aggregate principal amount, upon surrender of such Notes to be exchanged at the office or agency of the Transfer Agent and Registrar. No service charge may be imposed for any such exchange but the Issuer or Transfer Agent
and Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
 The Issuer, the Transferor, the Indenture Trustee and any agent of the Issuer, Transferor or the Indenture Trustee shall treat the person in whose name this Class C Note is registered as the owner hereof for all purposes, and neither the
Issuer, the Transferor, the Indenture Trustee nor any agent of the Issuer, Transferor or the Indenture Trustee shall be affected by notice to the contrary. 
  

 A-3-5 

 THIS CLASS C NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, 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. 
  

 A-3-6 

 ASSIGNMENT 
 Social Security or other identifying number of assignee              
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                                        
                                     
 (name and address of assignee)     
 the
within note and all rights thereunder, and hereby irrevocably constitutes and appoints             , attorney, to transfer said note on the books kept for registration thereof, with
full power of substitution in the premises. 
  

			
	Dated:	  	 3

		  	Signature Guaranteed:
		  	  

	__________________	  	

  

	3	NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within note in every particular,
without alteration, enlargement or any change whatsoever. 

  

 A-3-7 

 EXHIBIT B 
 MONTHLY SERVICING STATEMENT 
 (Delivered pursuant to Section 5.03(a) 
 of the Indenture Supplement) 
 HSBC FINANCE
CORPORATION, as Servicer (“HSBC Finance”) 
 HSBC FUNDING (USA) INC. V (the “Transferor”)

 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I (the “Trust”) 
 Class A Notes, Class B Notes and Class C Notes, Series 2006-[    ] 
  

							
		 	This Certificate relates to the:	  	Distribution Date occurring on:	  	_________________
		 		  	Due Period beginning on:	  	_________________
		 		  	Due Period ending on:	  	_________________
		 		  	Interest Period beginning on:	  	_________________
		 		  	Interest Period ending on:	  	_________________
		 		  	Record Date:	  	_________________
		
		 	The Determination Date for the Due Period covered by this Monthly Servicing Statement shall be, the earlier of the third Business Day and the fifth calendar day (or if the fifth
calendar day is not a Business Day, then the preceding Business Day) preceding the fifteenth day of the Due Period covered by this Monthly Servicing Statement.

  

	1.	Pool One information with respect to the Due Period 

  

	(a)	The aggregate amount of such Collections of Principal Receivables _________________________________________ 

  

	(b)	The aggregate amount of such Collections of Finance Charge and Administrative Receivables ____________________ 

  

	 	(i)	The amount of such aggregate with respect to finance charges was equal to _______________________________ 

  

	 	(ii)	The amount of such aggregate with respect to fees was equal to_________________________________________ 

  

	 	(iii)	The amount of such aggregate with respect to Interchange was equal to __________________________________ 

  

	 	(iv)	The amount of such aggregate with respect to Recoveries was equal to ___________________________________ 

  

	 	(v)	The amount of such aggregate with respect to Discount Option Receivables was equal to ____________________ 

  

	(c)	The Defaulted Amount _____________________________________________________________________________ 

  

	(d)	The Adjusted Pool One Principal Balance for such Due Period _____________________________________________ 

  

 B-1 

					
		 	(i)	 	the aggregate amount of Principal Receivables added to or removed from Pool One, if applicable_________________________
			
		 	 (ii)
	 	 Addition Date or Removal Date, if applicable________________________________________________________________

		
	(e)	 	The amount of Principal Receivables at the beginning of the Due Period_____________________________________________
		
	(f)	 	The amount of Principal Receivables as of the last day of the Due Period___________________________________________
			
	(g)	 	(i)	 	The amount of Finance Charge and Administrative Receivables, excluding Discount Option Receivables, as of the last day
of the Due Period
_________________________________________________________________________________
			
		 	(ii)	 	The amount of Discount Option Receivables as of the last day of the Due Period________________________________________
			
		 	(iii)	 	The amount of Finance Charge and Administrative Receivables, including Discount Option Receivables, as of the last day
of the Due Period
________________________________________________________________________________
			
	(h)	 	(i)	 	 The gross cash yield, [((b)(i)+(b)(ii)+(b)(iii)) * 12 / (e) ], _________________________________________________

			
		 	(ii)	 	The annualized net default rate, [(c)-(b)(iv)] *12 / (e)] ___________________________________________________
			
		 	(iii)	 	 The principal payment rate, [(a)/(e)]______________________________________________________________________

			
	(i)	 		 	Transferor Amount_________________________________________________________________________________
			
	(j)	 		 	Transferor interest percentage (Transferor Amount/aggregate
		 		 	 Series Adjusted Invested Amount)______________________________________________________________________

		
	(k)	 	As of last day of the Due Period, delinquent Receivables balance___________________________________________________
		 	 30-59 days delinquent___________________________________________________________________________________

		 	 60-89 days delinquent__________________________________________________________________________________

		 	 90-119 days delinquent_________________________________________________________________________________

		 	 120-149 days delinquent__________________________________________________________________________________

		 	 150-179 days delinquent_________________________________________________________________________________

		 	 180 days or more delinquent______________________________________________________________________________

		
	 2.
	 	Series 2006-[    ] information for the Due Period
		
	 (a)
	 	Series 2006-[    ] is in the following period___________________________________________________________________
		
	 (b)
	 	Investor Percentage is equal to___________________________________________________________________________
		 	 for Collections of Finance Charge and Administrative
Receivables_________________________________________________

		 	 for Defaulted Amounts__________________________________________________________________________________

		 	 for Collections of Principal Receivables___________________________________________________________________

		
	 (c)
	 	Investor Finance Charge and Administrative Collections is equal to________________________________________________
		
	 (d)
	 	Investor Defaulted Amount is equal to_________________________________________________________________________

  

 B-2 

	(e)	Investor Principal Collections is equal to ___________________________________________________________________ 

  

	(f)	The Monthly Servicing Fee, plus unpaid Monthly Servicing Fee is equal to ________________________________________ 

  

	(g)	The Series Portfolio Yield is equal to ______________________________________________________________________ 

  

	(h)	The Base Rate is equal to _______________________________________________________________________________ 

  

	(i)	Three month average of the Series Portfolio Yield less Base Rate _______________________________________________ 

  

	3.	Determination of Monthly Interest for the Interest Period related to such Distribution Date  

  

	(a)	LIBOR Determination Date ______________________________________________________________________________ 

 LIBOR rate ___________________________________________________________________________________________ 
 The number of days in the Interest Period is equal to ___________________________________________________________ 
  

	(b)	Class A Note Principal Balance - end of preceding Due Period ____________________________________________________ 

 The Class A Note Interest Rate is equal to (LIBOR +     %) _______________________________________________________

 Interest accrual method ___________________________________________________________________________________ 
 Class A Monthly Interest is equal to _________________________________________________________________________ 
  

	(c)	Class B Note Principal Balance - end of preceding Due Period ____________________________________________________ 

 The Class B Note Interest Rate is equal to (LIBOR +     %) _______________________________________________________ 

Interest accrual method ___________________________________________________________________________________ 
 Class B Monthly Interest is equal to _________________________________________________________________________ 
  

	(d)	Class C Note Principal Balance - end of preceding Due Period __________________________________________________ 

 The Class C Note Interest Rate is equal to (LIBOR +     %) ______________________________________________________ 

Interest accrual method ___________________________________________________________________________________ 
 Class C Monthly Interest is equal to _________________________________________________________________________ 
  

	4.	Application of Available Investor Finance Charge and Administrative Collections 

 (Section 4.04) 
  

	(a)	Available Investor Finance Charge and Administrative Collections and Excess Finance Charges and Administrative Collections for the Distribution Date is equal to
_________________________________________________________________________ 

  

	 	(i)	The amount of Class A Monthly Interest is equal to _________________________________________________________ 

 The amount of any Class A Monthly Interest previously due __________________________________________________ 
 but not distributed is equal to ___________________________________________________________________________ 
 The amount of Class A Additional Interest is equal to _______________________________________________________ 
 The amount of any Class A Additional Interest previously due_______________________________________________ 
 but not distributed is equal to ___________________________________________________________________________ 
  

	 	(ii)	The amount of Class B Monthly Interest is equal to _________________________________________________________ 

 The amount of any Class B Monthly Interest previously due __________________________________________________ 
 but not distributed is equal to ___________________________________________________________________________ 
  

 B-3 

 The amount of Class B Additional Interest is equal to __________________________________________________

 The amount of any Class B Additional Interest previously due but not distributed is equal to ___________________ 
  

	 	(iii)	The amount of Class C Monthly Interest is equal to ____________________________________________________ 

 The amount of any Class C Monthly Interest previously due but not distributed is equal to_____________________ 
 The amount of Class C Additional Interest is equal to __________________________________________________ 
 The amount of any Class C Additional Interest previously due but not distributed is equal to __________________ 
  

	 	(iv)	The Monthly Servicing Fee, plus unpaid Monthly Servicing Fee is equal to ______________________________ 

  

	 	(v)	The Investor Defaulted Amount for such Distribution Date is equal to _____________________________________ 

  

	 	(vi)	The amount of Investor Charge-offs reimbursed on such Distribution Date is equal to ________________________ 

 The amount of Subordinated Principal Collections reimbursed on such Distribution Date is equal to _____________ 
  

	 	(vii)	The amount applied to accelerate Principal pursuant to Section 5.03 is equal to ______________________________ 

  

	 	(viii)	The amount equal to the excess of the Required Reserve Account Amount over the Available Reserve Account 

	 	    	Amount ______________________________________________________________________________________ 

  

	 	(ix)	the balance, which will constitute a portion of Excess Finance Charge and Administrative Collections distributed to the Transferor
____________________________________________________________________________________ 

  

	5.	Available Investor Principal Collections with respect to the Due Period 

 Investor Principal Collections _____________________________________________________________________ 
 less:
Subordinated Principal Collections _______________________________________________________________ 
 plus: allocated Shared Principal
Collections ____________________________________________________________ 
 plus: Refunding Proceeds
___________________________________________________________________________ 
 plus: reallocated Investor Finance Charge and Administrative
Collections ____________________________________ 
 Available Investor Principal Collections is equal to
______________________________________________________ 
  

	6.	Balances and distributions 

  

	(a)	The Class A Note Principal Balance at the close of business on such Distribution Date (prior to giving effect to all payments on such Distribution Date) is equal to
_______________________________________________________________________ 

 The amount to be distributed to Class A
Noteholders on such Distribution Date in payment of principal _________________ 
  

 B-4 

 The Class A Note Principal Balance at the close of business on such Distribution Date (after giving
effect to all payments on such Distribution Date) is equal to________________________________________________________________________ 
  

	(b)	The Class B Note Principal Balance at the close of business on such Distribution Date (prior to giving effect to all payments on such Distribution Date) is equal
to______________________________________________________________________ 

 The amount to be distributed to Class B Noteholders
on such Distribution Date in payment of principal_______________ 
 The Class B Note Principal Balance at the close of business on such
Distribution Date (after giving effect to all payments on such Distribution Date) is equal to_______________________________________________________________________ 
  

	(c)	The Class C Note Principal Balance at the close of business on such Distribution Date (prior to giving effect to all payments on such Distribution Date) is equal
to_______________________________________________________________________ 

 The amount to be distributed to Class C Noteholders
on such Distribution Date in payment of principal________________ 
 The Class C Note Principal Balance at the close of business on such
Distribution Date (after giving effect to all payments on such Distribution Date) is equal to_________________________________________________________________________ 
  

	(d)	The O/C Amount at the close of business on such Distribution Date (prior to giving effect to all payments and adjustments on such Distribution Date) is equal
to______________________________________________________________________ 

 The amount to be distributed to O/C Holder on such
Distribution Date in payment of the Excess O/C Amount_______________ 
 The O/C Amount at the close of business on such Distribution Date
(after giving effect to all payments and adjustments on such Distribution Date) is equal to______________________________________________________________________________ 
 The Required O/C Amount at the close of business on such Distribution Date (after giving effect to all payments and adjustments on such Distribution Date) is equal
to___________________________________________________________ 
  

	(e)	Investor Charge-off for such Distribution Date is equal to________________________________________________ 

  

	(f)	The Adjusted Investment Amount at the close of business on such Distribution Date (after giving effect to all payments and adjustments on such Distribution Date) is equal
to____________________________________________________________ 

  

	(g)	The Invested Amount at the close of business on such Distribution Date (after giving effect to all payments and adjustments on such Distribution Date) is equal
to_________________________________________________________________________ 

  

	(h)	The Principal Funding Account balance on such Distribution Date (prior to giving effect to all payments on such Distribution Date) is equal
to____________________________________________________________________________________ 

 The amount deposited to the Principal
Funding Account on such Distribution Date___________________________________ 
 The Principal Funding Account balance on such Distribution
Date (after giving effect to all payments on such Distribution Date) is equal to__________________________________________________________________________________________ 
  

 B-5 

	(i)	The Reserve Account balance on such Distribution Date (prior to giving effect to all payments on such Distribution Date) is equal to
_________________________________________________________________________________________ 

 Earnings retained in the Reserve
Account on such Distribution Date, prior to distributions 
 The amount withdrawn from the Reserve Account on such Distribution Date
____________________________________ 
 The amount deposited to the Reserve Account on such Distribution Date
_______________________________________ 
 The Reserve Account balance on such Distribution Date (after giving effect to all payments on such
Distribution Date) is 
 equal to ______________________________________________________________________________________ 
  

	(j)	The amount of distribution to Class A Noteholders per $1000 Class A Note Initial Principal Balance ___________________ 

 in respect of interest _____________________________________________________________________________ 
 in respect of principal ____________________________________________________________________________ 
  

	(k)	The amount of distribution to Class B Noteholders per $1000 Class B Note Initial Principal Balance _________________ 

 in respect of interest ______________________________________________________________________________ 
 in respect of principal ______________________________________________________________________________ 
  

	(l)	The amount of distribution to Class C Noteholders per $1000 Class C Note Initial Principal Balance __________________ 

 in respect of interest __________________________________________________________________________ 
 in respect of principal __________________________________________________________________________ 
  

	7.	Other 

  

	(a)	Total amount to be on deposit in the Collection Account (after giving effect to allocations required to be made pursuant to the terms of all other Series now outstanding and to the
payment of the Servicer’s fee and funding of investor defaulted amounts) prior to making distributions on such Distribution Date is equal to __________________________________________ 

  

	(b)	The total amount to be distributed from the Collection Account to the Transferor on such Distribution Date (after taking into consideration the amounts which have been netted with
respect to all Series against deposits to the Collection Account) is equal to ___________________________________________________________________________________________________ 

  

	(c)	As of the Determination Date, the Servicer has determined: 

  

	 	(i)	The Controlled Accumulation Period Length in Due Periods __________________________________________ 

  

	 	(ii)	The commencement date of the Controlled Accumulation Period at the close of business __________________ 

  

	 	(iii)	The Controlled Accumulation Amount _____________________________________________________________ 

  

 B-6 

 EXHIBIT C 
 HSBC FINANCE CORPORATION, as Servicer 
 HSBC FUNDING (USA) INC. V 
 HSBC PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST (USA) I 
 Class A Notes, Class B Notes, and Class C Notes, Series 2006-[    ] 
 The
undersigned, a duly authorized representative of HSBC Finance Corporation (“HSBC Finance”), as Servicer (the “Servicer”), pursuant to the Amended and Restated Transfer and Servicing Agreement, dated as
of August 11, 2006 as may be amended (the “Transfer and Servicing Agreement”), by and among HSBC Receivables Funding Inc. I as Transferor, the Servicer, and Wilmington Trust Company, as Owner Trustee, does hereby certify
with respect to the information set forth below as follows: 
 Capitalized terms used in this Certificate shall have the respective meanings
set forth in the Transfer and Servicing Agreement. 
 HSBC FINANCE is, as of the date hereof, the Servicer under the Transfer and Servicing
Agreement 
 The undersigned is a Servicing Officer. 
 This Certificate relates to the Distribution Date occurring on                     . 
 As of the date hereof, to the best knowledge of the undersigned, no Amortization Event has been deemed to have occurred on or prior to such Distribution
Date 
 The amounts specified to be deposited into and withdrawn from the Collection Account, as well as the amounts specified to be paid to
the Transferor, the Servicer and the Noteholders are all in accordance with the requirements of the Transferee and Servicing Agreement, Master Indenture, and Indenture Supplement. 
 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate this
             day of                     ,
20    . 
  

	
	HSBC FINANCE CORPORATION
	as Servicer,

  

	
	  

  

 C-1

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