Document:

NON-PLAN OPTION AGREEMENT

 
EXHIBIT
10.14 
 
Non-Plan Option Agreement dated as
of October 9, 2002 between 
the Company and Vince Gennaro 
 

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TURBOCHEF
TECHNOLOGIES, INC. 
NON-INCENTIVE STOCK OPTION AGREEMENT 
 
This NON-INCENTIVE STOCK OPTION AGREEMENT (this
“Agreement”) is made and entered into effective as of the 9th day of October 2002 by and between TurboChef Technologies, Inc. (the “Company”), and Vincent A. Gennaro, an employee of the Company, or a subsidiary of the Company
(the “Employee”). 
 
WHEREAS, the Company
desires to grant the Employee an option to purchase shares of its restricted $0.01 par value common stock (“Common Stock”). 
 
NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, the parties agree as follows: 
 

	1.	 	Grant of Option. Subject to the terms contained herein, the Company hereby grants to the Employee on the date set forth above the right and option (herein
called the “Option”), to purchase all or any part of 1,475,000 shares of Common Stock (the “Shares”). The Option shall be a “non-incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”). 

 

	2.	 	Purchase Price. Subject to adjustment as provided in Section 7, the purchase price for the shares of Common Stock covered by the Option shall be $0.54 per
share, which price is no less than the par value and not less than the fair market value of each Share as of the date of the grant. 

 

	3.	 	Exercise of Option; Termination of Option. 

 

	 	a)	 	The Option shall become exercisable on April 9, 2003 as to one-sixth of the shares, October 9, 2003 as to two-sixths of the shares, April 9, 2004 as to three-sixths
of the shares, October 9, 2004 as to four-sixths of the shares April 9, 2005 as to five-sixths of the shares, October 9, 2005 as to all of the Shares. 

 

	 	b)	 	The Option shall expire at the close of business on October 9, 2012, (the “Option Period”), but shall be subject to earlier termination as provided herein.

 

	 	c)	 	In the event the Employee is terminated by the Company for “cause” (as determined by the Board of Directors of the Company or as defined in any employment
agreement between the Employee and the Company) the Employee’s right to exercise any unexercised portion of this Option shall cease forthwith, and this Option shall thereupon terminate. “Cause” shall mean, as determined by the Board,
in its sole discretion exercised in a nondiscriminatory manner, (i) the continued failure of the Employee to substantially perform his/her duties to the Company, (ii) the engaging by the Employee in willful, reckless or grossly negligent misconduct
which is determined by the Board to be materially injurious to the Corporation or any 

 

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	 	    	 	of its affiliates, monetarily or otherwise, or (iii) the Employee’s pleading guilty to or conviction of a felony. 

 

	 	d)	 	If the Employee’s employment with the Company is terminated for any reason than “cause” then the vested portion of the Option shall expire no more
than 5 years following the termination of the Employee from the Company (“Extended Exercise Period”) and the unvested portion of the Option shall immediately expire upon the Employee’s termination date. The portion of the Option which
had been vested up through and including the Employee’s termination date shall remain exercisable up through the Option Period or according to the Extended Exercise Period, as determined below, whichever is shorter: 

 

	 Period of Employment

	  	 Extended Exercise Period

	 Less than 1 year
	  	 Up to 90 days from the Employee’s termination date

	 1 – 2 years
	  	 Up to 1 year from the Employee’s termination date

	 2 – 3 years
	  	 Up to 2 years from the Employee’s termination date

	 3 – 4 years
	  	 Up to 3 years from the Employee’s termination date

	 4 – 5 years
	  	 Up to 4 years from the Employee’s termination date

	 5 or more years
	  	 Up to 5 years from the Employee’s termination date

 

	4.	 	Non-transferability of Option. The option shall not be assignable or transferable by the Employee, except by will or by the laws of descent and distribution.
During the life of the Employee, the Option shall be exercisable only by the Employee. 

 

	5.	 	Exercise of Option Upon the Death of the Employee. In the event that the Employee, while still employed by the Company, shall die within the Option Period,
the Option may be exercised to the extent and as herein provided, but only prior to the first to occur of: (a) the expiration of the period of one year after the date of the Employee’s death, or (b) the expiration of the Option Period, by the
person or persons entitled to do so under the Employee’s will, or, if the Employee shall fail to make testamentary disposition of said Option or shall die intestate, by the Employee’s legal representative or representatives.

 

	6.	 	Method of Exercising Option. 

 

	 	a)	 	Not less than 15 nor more than 30 calendar days prior to the date upon which all or any portion of the Option is to be exercised, the person entitled to exercise the
Option shall deliver to the Company written notice of his election to exercise all or a part of the Option, which notice shall specify the date for the exercise of the Option and the number of Shares in respect of which the Option is to be
exercised. The option price of the Shares to be purchased pursuant to the Option shall be paid in full in cash or by delivery (i.e. surrender) of shares of Common Stock then owned by the Employee, at the time of the exercise of the Option. Shares of
Common Stock so delivered 

 

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	 	    	 	will be valued in accordance with the Option Plan on the day of delivery for the purpose of determining the extent to which the option price has been paid thereby,
or as otherwise determined by the Committee pursuant to the Option Plan; provided, however, that if the Option is at the time of any exercise then exercisable as to 100 or more Shares, then the Option may not be exercised at such time
for less than 100 Shares and, if the Option is at the time of any exercise then exercisable for less than 100 Shares, then the Option must be exercised as to all such shares which are then exercisable. If the Option is exercised in accordance with
the provisions of the Option Plan and this Agreement, the Company shall deliver to such person certificates representing the number of Shares or other securities in respect of which the Option is being exercised, which Shares or other securities
shall be registered in his name. 

 

	 	b)	 	The Option is not exercisable after the expiration of ten years from the date of the grant. 

 

	7.	 	Adjustment of Number of Shares. In the event that a dividend shall be declared upon the shares of Common Stock payable in shares of Common Stock, the number
of shares of Common Stock then subject to the Option granted hereunder shall be adjusted by adding to each of such shares the number of shares of Common Stock which would be distributable thereon if such shares had been outstanding on the date fixed
for determining the stockholders entitled to receive such stock dividend. In the event that the outstanding shares of Common Stock shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the
Company or of another corporation, whether through reorganization, recapitalization, stock split-up, combination of shares, merger or consolidation, then there shall be substituted for each share of Common stock subject to the Option, the number and
kind of shares of stock or other securities into which each outstanding share of Common stock shall be so changed or for which each such share shall be exchanged; provided, however, that in the event that such change or exchange
results from a merger or consolidation, and in the judgment of the Board of Directors such substitution cannot be effected or would be inappropriate, or if the Company shall sell all or substantially all of its assets, the Company shall use
reasonable efforts to effect some other equitable adjustment to the Option, which adjustment shall be determined by the Board of Directors in its sole discretion. In the event that there shall be any change, other than as specified above in this
Section 7 or in the Option Plan, in the number or kind of outstanding shares of Common Stock or of any stock or other securities into which such shares of Common Stock shall have been changed or for which they shall have been exchanged, then, if the
Board of Directors shall determine that such change equitably requires an adjustment in the number or kind of shares then subject to the Option, such adjustment shall be made by the Board of Directors and shall be effective and binding for all
purposes of the Option Plan and Agreement. Notwithstanding the foregoing, if any adjustment in the number of shares which may be issued and sold pursuant to options granted under the Option Plan is required by the Code or regulations issued pursuant
thereto to be approved by the stockholders of 

 

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	    	 	the Company in order to enable the Company to issue Non-Incentive Stock Options pursuant to the Option Plan, then no such adjustment shall be made without the
approval of such stockholders. In the case of any such substitution or adjustment as provided for in this Section, the option price in this Agreement for each share of Common Stock covered hereby prior to such substitution or adjustment will be the
total option price for all shares of stock or other securities which shall have been substituted for each such share or to which such share shall have been adjusted pursuant to this Section 7 or Section 9 of the Option Plan. No adjustment or
substitution provided for in this Section 7 or Section 9 of the Option Plan shall require the Company to sell a fractional share, and the total substitution or adjustment with respect to this Agreement shall be limited accordingly. Notwithstanding
the foregoing, if the effect of the adjustments or substitution is to cause the Option to fail to continue to qualify as an Non-Incentive Stock Option or to cause a modification, extension or renewal of such Option within the meaning of Section 424
of the Code, the Board of Directors shall use reasonable efforts to effect such other adjustment to the Option as the Board of Directors, in its sole discretion, shall deem equitable. 

 

	8.	 	Change of Control. Notwithstanding any provision of this Plan or any provision in any stock option agreement to the contrary, all unexpired Options will
become immediately exercisable in full upon and simultaneously with the occurrence of any of the following events: 

 
a) The Company is merged, consolidated, or reorganized into or with another corporation or other legal entity, and as a result of such
merger, consolidation, or reorganization less than a majority of the combined voting power of the then-outstanding securities of such corporation or entity immediately after such transaction are held in the aggregate by the holders of
then-outstanding securities entitled to vote generally in the election of directors of the Company (the “Voting Stock”), immediately prior to such transaction; 
 
b) The Company sells or otherwise transfers all or substantially all of its assets to another corporation or
other legal entity and, as a result of such sale or transfer, less than a majority of the combined voting power of the then-outstanding securities of such other corporation or entity immediately after such sale or transfer is held in the aggregate
by the holders of Voting Stock of the Company immediately prior to such sale or transfer; or 
 
c) Any person (as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act), other than Jeffrey B. Bogatin or his heirs or legal representatives, becomes the
beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act) of securities representing 50% or more of the combined voting power of the Voting Stock of
the Company; provided, however, that an event pursuant to the provisions of this Section 10(c) shall not be deemed to have occurred solely because (i) the Company, (ii) a Subsidiary of the Company, or (iii) any employee stock

 

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ownership plan or any other employee benefit plan of the Company or any of its
Subsidiaries becomes the beneficial owner of securities of the Company. 
 

	9.	 	Securities Law Matters and Transfer of Shares. 

 

	 	a)	 	The Employee represents and warrants that he is acquiring this Option and, in the event this Option is exercised, the shares of Common Stock covered thereby (the
“Shares”), for investment, for his own account and not with a view to the distribution thereof, and that he has no present intention of disposing of this Option or the Shares of any interest therein or sharing ownership thereof with any
other person or entity. 

 

	 	b)	 	The Employee agrees that at the time of any exercise of the Option, he will furnish to the Company upon request evidence, satisfactory to the Company, that the
exercise of the Option does not violate any provision of the Securities Act of 1993, as amended (the “Act”), nor any applicable state securities laws. 

 

	 	c)	 	Any person acquiring Shares pursuant to bequest or inheritance shall, as a condition of acquiring the same, execute a document satisfactory to the Company agreeing
to be bound by all of the restrictions of this Agreement to the full extent that such restrictions would have applied to the Employee. 

 

	 	d)	 	The Employee agrees that regardless of compliance with the other provisions of this Section 8, he will not at any time offer, sell, hypothecate, or otherwise
transfer any of the Shares unless either: 

 

	 	i)	 	A registration statement covering the Shares which are to be so offered (and their sale by the transferor thereof) has been filed with the Securities and Exchange
Commission pursuant to the Act and such sale, transfer or other disposition is accompanied by a prospectus relating to a registration statement which is in effect under the Act covering the Shares which are to be sold, transferred or otherwise
disposed of and meeting the requirements of Section 10 of the Act; or 

 

	 	ii)	 	Counsel satisfactory to the Company renders an opinion in writing and addressed to the Company, satisfactory in form and substance to the Company and its counsel,
that in the opinion of such counsel such proposed sale, offer, transfer or other disposition of the Shares is exempt from the provisions of Section 5 of the Act in view of the circumstances of such proposed offer, sale, transfer or other
disposition. 

 

	 	e)	 	The Employee acknowledges that (A) the Shares and the Option constitute “securities” under the Act and /or the Securities Exchange Act of 1934, as amended,
and/or the Rules and Regulations promulgated under said Acts; (B) the Shares may be required to be held indefinitely unless subsequently 

 

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	 	    	 	registered under the Act for sale by the transferee or an exemption from such registration is available; and (C) the Company is not under any obligation with respect
to the registration of the Shares. 

 

	 	f)	 	The certificate or certificates representing the Shares may have an appropriate legend referring to the restrictions upon transfers set forth herein.

 

	 	g)	 	The Employee is advised that he or his legal representative, as the case may be, may be required to make an appropriate representation at the time of any exercise of
this Option in form and substance similar to the representations contained herein, relating to the Shares of Common Stock then being purchased. 

 

	10.	 	Rights as a Stockholder. The Employee shall have no rights as a stockholder with respect to any shares covered by the Option until the date of issuance of a
stock certificate to the Employee for such shares. 

 

	11.	 	No Guarantee of Employment. Nothing in this Plan will in any manner be construed to limit in any way the right of the Company or a Subsidiary to terminate any
Grantee’s employment at any time, without regard to the effect of such termination on any rights such Grantee would otherwise have under this Plan, or give any right to such Grantee to remain employed by the Company or a Subsidiary in any
particular position or at any particular rate of compensation. 

 

	12.	 	Retirement. Notwithstanding any provision of this Plan or any provision in any stock option agreement to the contrary, all unexpired Options granted to any
Grantee who is an employee of the Company or any of its Subsidiaries will become immediately exercisable in full upon the “retirement” of such Grantee; provided, that, such Grantee shall have been employed by the Company or
any of its Subsidiaries for a period of at least two consecutive years prior to the date of such retirement. For purposes of this Plan, the term “retirement” shall mean (i) the voluntary termination of employment with the Company and/or
any of its Subsidiaries by a Grantee on or after the date such Grantee becomes 62 years old, or (ii) the mandatory retirement from the Company and/or any of its Subsidiaries with respect to a Grantee pursuant to the Company’s then existing
employment policy. 

 

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This shares underlying this
option grant as of the date of the grant are unregistered shares, and therefore subject to certain restrictions. The following restrictive legend will appear upon any shares issued pursuant to this option grant. 
 
The shares represented by this certificate have not been registered
under the Securities Act of 1933, as amended, or the securities laws of any state (collectively, the “Acts”). Neither the shares nor any interest therein may be offered, sold, transferred, pledged, or otherwise disposed of in the absence
of an effective registration statement with respect to the shares under all of the applicable Acts, or an opinion of counsel satisfactory to TurboChef Technologies, Inc. to the effect that such registrations are not required. 
 
If, in the future, the Company registeres the shares associated with this
option grant, the Company will notify the Employee at the last reported address. 
 
 
IN WITNESS WHEREOF the parties hereto have executed this Non-Incentive Stock Option Agreement as of the day and year first above written.

 

	 TURBOCHEF TECHNOLOGIES, INC.

	
	 /s/ John C. Shortley

	 John C. Shortley
 Treasurer & Secretary

 
 
The foregoing is in accordance with my understanding and is hereby confirmed and agreed to as of the date of grant. 
 

	 EMPLOYEE

	
	 /s/ Vincent A. Gennaro

	 Vincent A. Gennaro

 

	

	

 

Page 8 of 8Amendment #4 to the Pooling and Servicing Agreement

 
Exhibit 4.1

 
SAKS CREDIT CORPORATION 
(as successor to Proffitt’s Credit Corporation), 
as Transferor 
 
HRSI FUNDING, INC. III, 
as Successor Transferor 
 
SAKS INCORPORATED 
(formerly named “Proffitt’s, Inc.”), 
as Servicer 
 
HOUSEHOLD FINANCE CORPORATION, 
as Successor Servicer 
 
and 
 
WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

(formerly named “Norwest Bank Minnesota, National Association”), 
as Trustee 
 
on behalf of the Certificateholders 
of the 
Saks Credit Card Master Trust 
 

 
AMENDMENT NO. 4 
 
to the 
 
MASTER POOLING AND SERVICING AGREEMENT 
 
Dated as of April 15, 2003 
 

 

 
THIS AMENDMENT
NO. 4 (this “Amendment”) to the Master Pooling and Servicing Agreement, dated as of August 21, 1997 (as amended and supplemented, the “Master Pooling and Servicing Agreement”), is dated as of April 15, 2003, and is
by and among SAKS CREDIT CORPORATION (as successor to Proffitt’s Credit Corporation), a Delaware corporation, as Transferor (“SCC” or the “Transferor”), HRSI FUNDING, INC. III, a Delaware corporation, as
Successor Transferor (“HRSI” or the “Successor Transferor”), SAKS INCORPORATED (formerly named “Proffitt’s, Inc.”), a Tennessee corporation, as Servicer (“Saks” or the
“Servicer”), HOUSEHOLD FINANCE CORPORATION, a Delaware corporation, as Successor Servicer (“HFC” or the “Successor Servicer”), and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION (formerly named
“Norwest Bank Minnesota, National Association”), a national banking association, as trustee (the “Trustee”). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Master
Pooling and Servicing Agreement. 
 
WHEREAS, Saks
and certain of its subsidiaries (together, the “Sellers”) are parties to a Purchase and Sale Agreement, dated as of July 26, 2002 (together with the exhibits, schedules, agreements and other documents related thereto, the
“Purchase Agreement”), with Household Bank (SB), N.A. (“Household Bank” or “Buyer”) pursuant to which the Sellers will sell (the “Sale”), and the Buyer will purchase, certain assets
related to and comprising the Sellers’ private label consumer credit card business (the “Credit Card Business”); 
 
WHEREAS, this Amendment is being entered into by the parties hereto (collectively, the “Parties”) to effect, among other
things, the assignment by the Transferor of all of its rights, obligations and interests under the Master Pooling and Servicing Agreement to the Successor Transferor, and the assignment by the Servicer of all of its rights, obligations and interests
under the Master Pooling and Servicing Agreement to the Successor Servicer; 
 
WHEREAS, the Parties have taken each and all of the actions required to properly amend the Master Pooling and Servicing Agreement in accordance with its terms; and 
 
NOW, THEREFORE, in consideration of the mutual promises
contained herein and in the Master Pooling and Servicing Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby, hereto agree as
follows:  
 
Section
1.    Amendments to the Master Pooling and Servicing Agreement 
 
  1.1  The definition of “Bank” in Section 1.1 of the Master Pooling and Servicing Agreement is amended in its entirety to read as follows: 
 
““Bank” shall mean Household Bank and
its respective successors and assigns, solely in their capacity as originators of Accounts and Receivables for and on behalf of customers of Saks and its Affiliates pursuant to the private label credit card program for Saks and its Affiliates.”

 

2 

 
1.2    The definition of “Certificate” is hereby amended and shall read in its entirety as follows: 
 
““Certificate” shall mean a certificate of any Series of the Investor Certificates or the Exchangeable Transferor
Certificate, and in the case of the Exchangeable Transferor Certificate or any Investor Certificate of any Series held by the Transferor, any book-entry maintained solely on the books and records of the Trustee to represent the interest of the
Transferor in the Exchangeable Transferor Certificate and/or any such Investor Certificate, where the Transferor has requested the Trustee to reflect such interest on the Trustee’s books and records interest in uncertificated, book-entry
form.” 
 
1.3    The
definitions of “Certificateholder” and “Holder” are hereby amended and shall read in their entirety as follows: 
 
““Certificateholder” or “Holder” shall mean the Person in whose name a Certificate is registered in
the Certificate Register, and where the Transferor has requested the Trustee to hold the Transferor’s ownership interest in the Exchangeable Transferor Certificate and/or any such Investor Certificate in uncertificated, book-entry form on the
Trustee’s books and records, the interest of the Transferor shown on the Trustee’s books and records.” 
 
1.4    The definition of “Company” in Section 1.1 of the Master Pooling and Servicing Agreement is amended
in its entirety to read as follows: 
 
““Company” shall mean Household Finance Corporation and its successors and assigns.” 
 
1.5    The definition of “Fiscal Year” in Section 1.1 of the Master Pooling and Servicing Agreement is
amended in its entirety to read as follows: 
 
““Fiscal Year” shall mean the fiscal year of the Servicer, which in the case of Saks Incorporated shall be the period beginning on the Sunday following the Saturday that is closest to the 31st of January of each
year, and ending on the Saturday that is closest to the 31st of January of the following year, or such other fiscal year as may hereafter be designated by each of the Servicer and/or its corporate Affiliates.” 
 
1.6    The definition of “Eligible
Originator” in Section 1.1 of the Master Pooling and Servicing Agreement is amended in its entirety to read as follows: 
 
““Eligible Originator” shall mean (i) each of the Sellers and their respective successors and assigns, (ii) the
Bank, (iii) any of the Sellers’ Affiliates or (iv) any other originator or acquirer of Receivables that is a party to a Receivables Purchase Agreement, provided that, with respect to clauses (iii) and (iv), the Transferor shall
have met the Rating Agency Condition and shall have delivered such notice(s) of compliance with such Rating Agency Condition to the Trustee and the Servicer.” 
 

3 

 
1.7    The definition of “Eligible Servicer” in Section 1.1 of the Master Pooling and Servicing Agreement is amended in its entirety to read as follows: 
 
““Eligible Servicer” shall mean
Household Finance Corporation or any other Affiliate of the Company, Saks Incorporated, McRae’s, Inc. or any other Affiliate of Saks Incorporated, the Trustee; or otherwise any entity which, at the time of its appointment as Servicer, (i) is an
established financial institution having capital or net worth of not less than $50,000,000, (ii) is servicing a portfolio of consumer revolving credit card accounts, (iii) is legally qualified and has the capacity to service the Accounts, (iv) has
demonstrated the ability to professionally service a portfolio of similar consumer revolving credit card accounts in accordance with standards of skill and care customary in the industry and (v) is qualified to use the software that is then
currently being used to service the Accounts or obtains the right to use or has its own software which is adequate to perform its duties under this Agreement.” 
 
1.8    The definition of “Exchangeable Transferor Certificate” is hereby
amended and shall read in its entirety as follows: 
 
“Exchangeable Transferor Certificate” shall mean the certificate executed by the Transferor and authenticated by the Trustee, substantially in the form of Exhibit A and exchangeable as provided in Section 6.9
for one or more Series of Investor Certificates and any reissued Exchangeable Transferor Certificate, and in the event that the Transferor has requested the Trustee to maintain it interest in the Exchangeable Transferor Certificate in uncertificated
book-entry form, the interest of the Transferor reflected by such book-entry.” 
 
1.9    The definitions of “Investor Certificate” is hereby amended and shall read in its entirety as follows: 
 
““Investor Certificate” shall mean any one of the certificates executed by the
Transferor and authenticated by the Trustee substantially in the form attached to the applicable Supplement, and where the Transferor has requested the Trustee to reflect the Transferor’s interest in such certificates, in uncertificated,
book-entry form, the interest of the Transferor in such certificates reflected on the books and records of the Trustee, which shall entitle the holder to the same rights, privileges and duties.” 
 
1.10    The definitions of “Investor
Certificateholder” is hereby amended and shall read in its entirety as follows: 
 
““Investor Certificateholder” shall mean the holder of record of an Investor Certificate, including the interest of the Transferor in uncertificated, book-entry Investor
Certificates.” 
 
1.11    The definition of “Receivables Purchase Agreement” in Section 1.1 of the Master Pooling and Servicing Agreement is amended in its entirety to read as follows: 
 

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““Receivables Purchase Agreements” shall mean (i) the receivables purchase agreement between Household Bank, as seller, and Household Receivables Acquisition Company, as purchaser, dated as of April 15, 2003;
and (ii) the receivables purchase agreement between Household Receivables Acquisition Company, as seller, and HRSI Funding, Inc. III, as purchaser, dated as of April 15, 2003.” 
 
1.12    The definition of “Sellers” in Section 1.1 of the Master Pooling and
Servicing Agreement is amended in its entirety to read as follows: 
 
““Sellers” shall mean G.R. Herberger’s, Inc., McRae’s, Inc., Parisian, Inc., Proffitt’s, Inc. and the Bank and their successors and assigns, and, subject only to the Rating Agency
Condition, such other Affiliates of Saks Incorporated as the Transferor may designate from time to time.” 
 
1.13    The definition of “Servicer” in Section 1.1 of the Master Pooling and Servicing Agreement is amended
in its entirety to read as follows: 
 
““Servicer” shall mean Household Finance Corporation and any Person thereafter appointed as Successor Servicer as herein provided to service the Receivables, which shall include Saks Incorporated, which may be
re-appointed as Servicer upon notice to the Trustee and the Rating Agencies without amendment or any other action under this Agreement or otherwise.” 
 
1.14    The definition of “Subservicer” in Section 1.1 of the Master Pooling and Servicing Agreement is
amended in its entirety to read as follows: 
 
““Subservicer” shall mean initially McRae’s, Inc. and any Person thereafter appointed by the Servicer as a subservicer of the Receivables.”” 
 
1.15    The definition of
“Transferor” in Section 1.1 of the Master Pooling and Servicing Agreement is amended in its entirety to read as follows: 
 
““Transferor” shall mean (a) HRSI Funding, Inc. III, an Affiliate of the Company, or its successors or permitted
assigns under this Agreement, and (b) any additional Transferor or Transferors, which shall include Saks Credit Corporation, which may be re-appointed as Transferor upon notice to the Trustee and the Rating Agencies without amendment or any other
action under this Agreement or otherwise, provided that each Transferor, successor or assign, on the effective date it becomes Transferor, (i) has the Minimum Net Worth specified in Section 2.5(f) hereof, (ii) satisfies the Rating Agency
Condition, and (iii) except in the case of a Bank, meets the separate business requirements of Section 2.5(g) hereof. References in this Agreement to “each Transferor” shall refer to each of the entities mentioned in the preceding
sentence, and references to “the Transferor” shall refer to all such entities.” 
 
1.16    The following definition of “Household Bank” shall be added to Section 1.1 of the Master Pooling and
Servicing Agreement: 
 

5 

 
““Household Bank” shall mean Household Bank (SB), N.A., a national banking association and an Affiliate of the Company.” 
 
1.17    The following definition of “Household Finance Corporation” shall be
added to Section 1.1 of the Master Pooling and Servicing Agreement: 
 
““Household Finance Corporation” shall mean Household Finance Corporation, a Delaware corporation and an Affiliate of the Company.” 
 
1.18    The following definition of “HRSI Funding, Inc. III” shall be added to
Section 1.1 of the Master Pooling and Servicing Agreement: 
 
““HRSI Funding, Inc. III” shall mean HRSI Funding, Inc. III, a Delaware corporation and an Affiliate of the Company.” 
 
1.19    The following definition of “McRae’s, Inc.” shall be added to
Section 1.1 of the Master Pooling and Servicing Agreement: 
 
““McRae’s, Inc.” shall mean McRae’s, Inc., a Mississippi corporation and an Affiliate of Saks Incorporated, a Tennessee corporation.” 
 
1.20    Section 1.2 of the Master Pooling and Servicing Agreement shall be amended in its
entirety to read as follows: 
 
“Section
1.2    Other Definitional Provisions. 
 
All terms defined in any Supplement or this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions of all
terms defined herein shall include the singular as well as the plural form of such terms and the masculine of such terms as well as the feminine and neuter genders of such terms. The terms “include”, “including” or
“includes” shall mean including without limitation by way of enumeration or otherwise. 
 
As used herein and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in
Section 1.1, and accounting terms partly defined in Section 1.1 to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles on the date of determination. To the extent that the
definitions of accounting terms herein are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained herein shall control. 
 
The agreements and representations and warranties of Household Finance Corporation in this Agreement in its
capacity as Servicer, shall be deemed to be the agreements, representations and warranties of Household Finance Corporation solely in such capacity for so long as it acts in such capacity under this Agreement. 
 

6 

 
The words
“hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to any Supplement or this Agreement as a whole and not to any particular provision of such Supplement or this
Agreement, as the case may be; Section, subsection, Schedule and Exhibit references contained in this Agreement or any Supplement are references to Sections, subsections, Schedules and Exhibits in or to this Agreement or any Supplement unless
otherwise specified.” 
 
1.21    Section 2.5(g) of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as follows: 
 
“(g)     Separate Business. Unless the Bank is serving as Transferor, the Transferor, shall at all
times (i) to the extent the Transferor’s office is located in the offices of the Company or any Affiliate of the Company pay fair market rent for its executive office space located in the offices of the Company, or any Affiliate of the Company,
(ii) have at all times at least two members of its board of directors who are not and, within the immediately preceding two (2) years, have not been employees, officers or directors of the Company, or its Affiliates (except for other bankruptcy
remote single purpose entities) or of any major creditor of the Company or its Affiliates and are persons who are familiar and have experience with asset securitization, or the Transferor shall have a class of preferred stock held by a Person not an
Affiliate of the Company, which preferred stock must unanimously consent to the Transferor instituting proceedings to be adjudicated insolvent or consent to the institution of any bankruptcy or insolvency case or proceedings against the Transferor
or file or consent to the appointment of a receiver, liquidator, assignee, trustee, custodian, or sequestrator (or other similar official) of the Transferor or a substantial part of its property, or make any assignment for the benefit of creditors,
or admit in writing its inability to pay its debts generally as they become due, or take any corporate action in furtherance of any such action, (iii) maintain the Transferor’s books, financial statements, accounting records and other corporate
documents and records separate from those of the Company or any other entity, (iv) not commingle the Transferor’s assets with those of the Company or any other entity, except to the extent otherwise permitted hereunder or for not longer than
two (2) Business Days after any Seller receives payments on Accounts as a result of in-store payments by Obligors or that have otherwise been received by Sellers on other Accounts sold to the Transferor and then transferred to the Trust, (v) act
solely in its corporate name and through its own authorized officers and agents, (vi) make investments directly or by brokers engaged and paid by the Transferor or its agents (provided that if any such agent is an Affiliate of the Transferor it
shall be compensated at a fair market rate for its services), (vii) separately manage the Transferor’s liabilities from those of the Company or any Affiliates of the Company and pay its own liabilities, including all administrative expenses,
from its own separate assets, except that the Company may pay the organizational expenses of the Transferor, and (viii) pay from the Transferor’s assets all obligations and indebtedness of any kind incurred by the Transferor. The Transferor
shall abide by all corporate formalities, including the maintenance of current minute books, and the Transferor shall cause its financial statements to be prepared in accordance with generally accepted accounting principles in a manner that
indicates the separate existence of the Transferor and its assets and liabilities. Except as provided herein or in the Receivables Purchase Agreements the Transferor shall (i) pay all its liabilities, (ii) not assume 
 

7 

 
the
liabilities of the Company or any Affiliate of the Company, (iii) not lend funds or extend credit to the Company, or any Affiliate of the Company, except pursuant to a Receivables Purchase Agreement in connection with the purchase of Receivables
thereunder, (iv) not guarantee the liabilities of the Company, or any Affiliates of the Company, and (v) not own the stock of, or any other beneficial interest in, any subsidiaries or any other entity. The officers and directors of the Transferor
(as appropriate) shall make decisions with respect to the business and operations of the Transferor independent of and not dictated by any controlling entity. The Transferor shall not engage in any business not permitted by its certificate or
articles of incorporation as in effect on the date hereof, provided such certificate or articles may be amended or changed subject only to the Rating Agency Condition.” 
 
1.22    Section 3.1(a) of the Master Pooling and Servicing Agreement shall be amended in
its entirety to read as follows: 
 
“(a)    Household Finance Corporation on and after the effective date of Amendment No. 4 to this Agreement will act as the Servicer under this Agreement. The Investor Certificateholders, by their acceptance
of the Investor Certificates or by a consent of the Certificateholders as specified in this Agreement, consent to Household Finance Corporation, acting as Servicer.” 
 
1.23    Section 3.1(b) of the Master Pooling and Servicing Agreement shall be amended in
its entirety to read as follows: 
 
“(b)    The Servicer shall service and administer the Receivables and shall collect payments due under the Receivables in accordance with its customary and usual policies and procedures in effect for
servicing consumer revolving credit card accounts receivables comparable to the Receivables, as such policies and procedures may be modified from time to time, and in accordance with the applicable Credit Card Guidelines and shall have full power
and authority, acting alone or through any party properly designated by it hereunder, to do any and all things in connection with such servicing and administration which it may deem necessary or desirable. The Servicer has designated as of the
effective time of Amendment No. 4 to this Agreement, McRae’s, Inc. as the sole Subservicer. Without limiting the generality of the foregoing and subject to Section 10.1, the Servicer is hereby authorized and empowered (i) to make withdrawals
and payments and to instruct the Trustee to make withdrawals and payments from the Collection Account, the Excess Funding Account or any other account or accounts maintained for the benefit of the Certificateholders or with regard to any Enhancement
as set forth in this Agreement and any Supplement, (ii) unless such power and authority is revoked by the Trustee on account of the occurrence of a Servicer Default pursuant to Section 10.1, to instruct the Trustee to take any action permitted or
required under any Enhancement at such time as is set forth in this Agreement or any Supplement, (iii) to execute and deliver, on behalf of the Trust for the benefit of the Certificateholders, any and all instruments of satisfaction or cancellation,
or of partial or full release or discharge, and all other comparable instruments, with respect to the Receivables and, after the delinquency of any Receivable and to the extent permitted under and in compliance with applicable law and regulations,
to commence enforcement proceedings with respect to such Receivables and (iv) to make any filings, reports, notices, applications, or registrations with, and to seek any consents or 
 

8 

 
authorizations
from, the Securities and Exchange Commission and any state securities or “blue sky” law authorities on behalf of the Trust as may be necessary or advisable to comply with any Federal or state securities or “blue sky” laws or
reporting requirements. Prior to receipt by a Responsible Officer of the Trustee of written notice of a Servicer Default, the Trustee shall promptly follow the written instructions of the Servicer to withdraw funds from the Collection Account and
any other account or accounts maintained for the benefit of the Certificateholders or with regard to any Enhancement. The Trustee shall furnish the Servicer with limited powers of attorney and other documents necessary or appropriate to enable the
Servicer to carry out its servicing and administrative duties hereunder, and the Trustee shall not be held responsible for any act or omission by the Servicer in its use of such powers of attorney.” 
 
1.24    The first paragraph of Section 3.3
of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as follows: 
 
“Section 3.3    Representations, Warranties and Covenants of the Servicer. Household Finance Corporation,
as Servicer, hereby makes, as of the effective time of Amendment No. 4 to this Agreement, and any successor Servicer by its appointment hereunder shall make, the following representations, warranties and covenants with respect to any future Series
of Certificates, as of the date of the related Supplement and the related Closing Date, unless otherwise stated in such Supplement, on which the Trustee has relied in accepting the Receivables and the other property conveyed pursuant to Section 2.1
in trust and in authenticating the Certificates:” 
 
1.25    Section 4.1(f) of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as follows: 
 
“(f)    Collections. The Servicer will apply all Collections with respect to the Receivables for each
Monthly Period as described in this Article IV and each Supplement. Except as otherwise provided herein or in the applicable Supplement, the Servicer shall deposit Collections into the Collection Account no later than the second Business Day
following the Date of Processing of such Collections. Subject to the express terms of any Supplement, but notwithstanding anything else in this Agreement to the contrary, for so long as the Company or an Affiliate of the Company shall be the
Servicer hereunder and no Pay Out Event relating to a Servicer Default shall have occurred and be continuing, and either (i) the Company remains the Servicer and maintains a commercial paper rating of not less than P-1 by Moody’s, A-1 by
Standard & Poor’s and F1 by Fitch, Inc., (ii) the Company shall have obtained a written notification from each Rating Agency to the effect that such Rating Agency does not intend to downgrade or withdraw its then current rating of any
outstanding Series of Investor Certificates despite the Servicer’s inability to satisfy the rating requirement specified in clause (i), (iii) the Company remains the Servicer, no Rapid Amortization Period or Pay Out Event shall have occurred,
the ultimate parent of Household Finance Corporation maintains a commercial paper rating of not less than A-1 by Standard & Poor’s, P-1 by Moody’s and F1 by Fitch, Inc., and, in the event that there is any material change in the
financing relationship between the Company and its parent corporation, (A) the Company shall have notified each Rating Agency and (B) the Rating Agency Condition shall be satisfied with respect to such material change, or (iv) any other arrangements
are made such that the Rating 
 

9 

 
Agency
Condition is satisfied with respect thereto, and for five Business Days following any event specified in clauses (i) through (iv) then the Servicer need not deposit Collections into the Collection Account or make payments to the holder of the
Exchangeable Transferor Certificate prior to the close of business on the second Business Day following the Date of Processing, but rather may make a single deposit in the Collection Account in immediately available funds on the Business Day prior
to each Distribution Date in an amount equal to the Collections with respect to the Monthly Period preceding such Distribution Date to the extent such amounts and Collections are allocated to one or more Series in accordance with Article IV. Subject
to the immediately foregoing sentence, the Servicer may retain its Servicing Fee with respect to a Series and shall not be required to deposit it in the Collection Account. Collections shall not be required to be invested in Permitted Investments
until such time as they are deposited into the Collection Account. The Servicer shall promptly notify the Trustee of any downgrade or withdrawal of its commercial paper rating or, if an Affiliate of the Company. is acting as Servicer hereunder, of
any such downgrade or withdrawal of any such rating of such Affiliate. 
 
Should the Servicer be required to make daily deposits of Collections into the Collection Account pursuant to this subsection, during any Amortization Period, the Servicer may, subject to the provisions of the applicable
Supplement, cease depositing Collections of Principal Receivables received in any Monthly Period and allocable to a Series at such time as the amount of Collections of Principal Receivables allocable to such Series and deposited into the Collection
Account equals the amount of principal scheduled or permitted to be paid on the next succeeding Distribution Date with respect to such Series. Collections of Principal Receivables allocable to such Series in excess of such amount shall be
distributed, on a daily basis as they are collected, to the Transferor.” 
 
1.26    Section 4.1(j) of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as follows: 
 
“(j)    Net Deposits. For so
long as Household Finance Corporation or an Affiliate of the Company shall be the Servicer hereunder and a Servicer Default shall not have occurred and be continuing, the Servicer may make deposits into the Collection Account or the Excess Funding
Account on any date net of amounts payable as of such date to the Transferor or the Servicer from amounts held in the Collection Account or the Excess Funding Account, it being understood that the Investor Monthly Servicing Fee with respect to any
Series shall be payable to the Servicer only in accordance with the provisions specified in the related Supplement and that the foregoing shall in no event increase the amount payable to the Transferor or the Servicer hereunder or pursuant to any
Supplement.” 
 
1.27    Subsection 7.2(a)(i) of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as follows: 
 
“(i)    the entity formed by such consolidation or into which the Transferor is
merged or the Person which acquires by conveyance or transfer the properties and assets of the Transferor substantially as an entirety shall be organized and existing under the laws of the United States of America or any State or the District of
Columbia, a national banking association or a state banking corporation or other depository entity whose deposits are insured by the FDIC which is not subject 
 

10 

 
to the
bankruptcy laws of the United States of America, or a single purpose, bankruptcy remote entity that is organized under the laws of any state of the United States, in each case, which is wholly-owned (other than director qualifying shares) directly
or indirectly, by the Company or its successors or assigns, and meets the Rating Agency Condition and if the Transferor is not the surviving entity, shall expressly assume, by an agreement supplemental hereto, executed and delivered to the Trustee,
in form satisfactory to the Trustee, the performance of every covenant and obligation of the Transferor, as applicable, hereunder and shall benefit from all the rights granted to the Transferor, as applicable, hereunder. To the extent that any
right, covenant or obligation of the Transferor is inapplicable to the successor entity, such successor entity shall be subject to such covenant or obligation, or benefit from such right, as would apply, to the extent practicable, to such successor
entity;” 
 
1.28    Section 8.5 of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as follows: 
 
“Section 8.5    The Servicer Not to Resign. The Servicer shall not resign from the obligations and
duties hereby imposed on it as such except (a) upon determination that (i) the performance of its duties hereunder is or will become impermissible under applicable law, regulation or order and (ii) there is no reasonable action which the Servicer
could take to make the performance of its duties hereunder permissible under applicable law or (b) upon the assumption, by an agreement supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, of the
obligations and duties of the Servicer hereunder by any of its Affiliates that is a direct or indirect wholly owned subsidiary of the ultimate parent of the Servicer or by any other entity the appointment of which shall have satisfied the Rating
Agency Condition and, in either case, qualifies as an Eligible Servicer. Any such determination permitting the resignation of the Servicer shall be evidenced as to clause (a) of this Section by an Opinion of Counsel to such effect delivered to the
Trustee. No such resignation will become effective until the Trustee or a Successor Servicer has assumed the Servicer’s responsibilities and obligations under this Agreement. If the Trustee is unable within 120 days of the date of such
determination to appoint a Successor Servicer pursuant to Section 10.2(a), the Trustee or its duly appointed agent (which may not be the outgoing Servicer) shall serve as Successor Servicer hereunder but the Trustee shall have continued authority to
appoint another Person as Successor Servicer. The Trustee shall give prompt notice to each Rating Agency and each Series Enhancer upon the appointment of a Successor Servicer. Notwithstanding anything in this Agreement to the contrary, Household
Finance Corporation may assign part or all of its obligations and duties as Servicer under this Agreement to (i) an Affiliate of Household Finance Corporation so long as Household Finance Corporation shall have fully guaranteed the performance of
such obligations and duties under this Agreement, or (ii) to Saks Incorporated.” 
 

11 

 
1.29    Section 8.9 of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as follows: 
 
“Section 8.9    Illinois Personal Property Tax. Household Finance Corporation shall indemnify and
hold harmless the Certificateholders, the Certificate Owners, and the Trustee, including the Trustee’s officers, directors, agents and employees, from and against any loss, liability, expense, damage or injury (net of any benefit realized),
that are suffered or sustained by the Trust, the Trustee or any Certificate Owner or Certificateholder as a result of and to the extent that the State of Illinois (or its taxing authority) determines that the Trust is a partnership and that the
Illinois Personal Property Replacement Income Tax (the “Replacement Tax”) is applicable to the Trust and, as a consequence, any Replacement Tax (including any interest or penalties with respect thereto or arising from a failure to
comply therewith) are required to be paid by the Trust, the Certificate Owners or the Certificateholders as a result of such determination. The foregoing indemnity shall terminate upon delivery to the Trustee of the following: (i) evidence of any
repeal or modification of the Replacement Tax by the State of Illinois (or its taxing authority) which would make it no longer potentially applicable to the Trust, the Trustee or any Certificate Owner or Certificateholder (in their capacities as
such hereunder); (ii) any determination, interpretation, ruling or regulation in writing from the State of Illinois or its taxing authority to the effect that the Replacement Tax would not be applicable to entities similarly situated to the Trust,
generally (accompanied by an opinion of counsel specified in clause (iv) below), or to the Trust, specifically; (iii) any private or public ruling received by the Trust, or any interpretive or other release in writing by the Internal Revenue Service
that any entity similarly situated to the Trust generally (accompanied by an opinion of counsel specified in clause (iv) below), or to the Trust specifically, would not be taxed as a partnership for federal income tax purposes; or (iv) written
opinion of any nationally recognized law firm admitted to practice in the State of Illinois to the effect that the Replacement Tax would not apply to the Trust, the Trustee or any Certificate Owner or Certificateholder (in their capacities as such
hereunder), or, if the State of Illinois at such date continues to follow the federal income tax and Treasury determinations as to whether an entity is taxable as a partnership or if and to the extent the State of Illinois is bound by any FASIT
election made by the Trust, from any other law firm nationally recognized with respect to federal income tax matters to the effect that the Trust and the mere ownership of Certificates issued thereunder would not cause the Trust, Trustee, the
Certificate Owners and the Certificateholders to be taxed as a partnership for federal income tax purposes.” 
 
1.30    Section 10.2(c) of the Master Pooling and Servicing Agreement shall be amended in its entirety to read as
follows: 
 
“(c)    In
connection with such appointment and assumption, (i) the Trustee shall be entitled to such compensation, or may make such arrangements for the compensation of the Successor Servicer out of Collections, as it and such Successor Servicer shall agree;
provided, however, that no such compensation shall be in excess of the Monthly Servicing Fee permitted to the Servicer pursuant to Section 3.2, (ii) Household Finance Corporation, as the Servicer, agrees to reimburse any reasonable
out-of-pocket, system conversion and modification, moving and related expenses incurred by the Successor Servicer, if the Servicer is not Household Finance Corporation, or an 
 

12 

 
Affiliate of
the Company or the Trustee, in connection to the transfer of servicing to a Successor Servicer, such reimbursement obligation in no event not to exceed $50,000, and (iii) if the Monthly Servicing Fee payable to the Successor Servicer shall not be
sufficient to cover the actual costs of servicing the Receivables, Household Finance Corporation, as the Servicer, agrees to reimburse any excess of the actual costs of servicing the Receivables over the Monthly Servicing Fee accruing to the
Servicer; provided, however, that such reimbursement obligation may not exceed the average costs of servicing for similar portfolios of Receivables.” 
 
1.31    Section 11.5 of the Master Pooling and Servicing Agreement shall be amended in
its entirety to read as follows: 
 
“Section
11.5    The Servicer to Pay Trustee’s Fees and Expenses. The Servicer covenants and agrees to pay to the Trustee from time to time out of its own funds, and the Trustee shall be entitled to receive, reasonable
compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) for all services rendered by it in the execution of the trust hereby created and in the exercise and performance of any
of the powers and duties hereunder or pursuant to any Supplement of the Trustee, and, subject to Section 8.4, the Servicer will pay or reimburse the Trustee (without reimbursement from the Collection Account or otherwise) upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Agreement or any Supplement (including the reasonable fees and expenses of its agents and counsel) except any such
expense, disbursement or advance as may arise from its negligence or bad faith and except as provided in the following sentence. If the Trustee is appointed Successor Servicer pursuant to Section 10.2, the provisions of this Section 11.5 shall not
apply to expenses, disbursements and advances made or incurred by the Trustee in its capacity as Successor Servicer. If Household Finance Corporation is not the Servicer, Household Finance Corporation shall guarantee the payment of all amounts
payable to the Trustee under this Section 11.5, and upon any payment pursuant to such guaranty, and Household Finance Corporation shall be subrogated to all rights of the Trustee to recover such amounts from the Servicer. 
 
The obligations of the Servicer and the Transferor under this
Section 11.5 and Section 8.4 shall survive the termination of the Trust and the resignation or removal of the Trustee or the Servicer.” 
 

	Section	 	2.    Amendment to the Series 2001-2 Supplement to the Master Pooling and Servicing Agreement 

 
The Series 2001-2 Supplement to the Master Pooling and
Servicing Agreement, dated as of July 17, 2001, shall be amended as set forth on the attached Exhibit A, which is incorporated into, and is made a part of, this Amendment. 
 

13 

 
Section
3.    Representations and Warranties 
 
(a)    Each of the Parties hereby represents and warrants severally and not jointly that, with respect to each Party: 
 
(i)    Its execution, delivery and performance of this Amendment are
within its corporate powers, have been duly authorized by all necessary corporate action and do not require any consent or approval which has not been obtained. 
 
(ii)    This Amendment is the legal, valid and binding obligation of it,
enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by general equitable principles. 
 
(b)    Each of the Successor Transferor,
the Successor Servicer and the Trustee hereby further represents and warrants that: 
 
(i)    The Master Pooling and Servicing Agreement as amended hereby is the legal, valid and binding
obligation of it, enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by general equitable principles.

 
Section 4.    Conditions Precedent

 
This Amendment shall become effective as of
its date, provided that all of the following conditions are first met: 
 
(a)    Saks Incorporated, as Servicer, shall have furnished the Trustee with an Officer’s Certificate to the effect that this Amendment will not materially and adversely
affect the interests of any Certificateholders; 
 
(b)    The Amendment will not cause the Trust to be characterized as a corporation for Federal income tax purposes or otherwise have a material adverse effect on the Federal income taxation of any Series;

 
(c)    Saks Incorporated, as
Servicer, shall have given each Rating Agency ten (10) Business Days’ prior written notice of this Amendment and shall have received written confirmation from each Rating Agency rating the affected Series that the Rating Agency Condition will
be met, where appropriate; 
 
(d)    The Trustee shall receive and shall be permitted to rely upon an Opinion of Counsel from Alston & Bird LLP to the effect that the conditions and requirements of Section 13.1(a) of the Master Pooling and
Servicing Agreement have been satisfied; and 
 

14 

 
(e)    SCC, as Transferor, shall deliver prior written notice of this Amendment to each Rating Agency. 
 
(f)    The transactions contemplated by the Purchase Agreement shall be closed. 
 
Section 5.    Miscellaneous 
 
(a)    Applicability of the Master
Pooling and Servicing Agreement. 
 
In all
respects not inconsistent with the terms and provisions of this Amendment, the provisions of the Master Pooling and Servicing Agreement are hereby ratified, approved and confirmed. 
 
(b)    Headings 
 
The captions in this Amendment are for convenience of reference only and shall not define or limit the
provisions hereof. 
 
(c)    Counterparts 
 
This Amendment may be executed in counterparts by facsimile or otherwise, each of which shall constitute an original, but all of which, when taken together, shall constitute but one and the same instrument. 
 
(d)    Governing Law 
 
THIS AMENDMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 
[Signatures on Next Page] 
 
 

15 

 
IN WITNESS
WHEREOF, the Parties have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of April 15, 2003. 
 

	 	  	 SAKS CREDIT CORPORATION,
 as Transferor
  
 By:    /s/ CHARLES J.
HANSEN                

 Name:     Charles J. Hansen
 Title:      Senior Vice President

	
	 	  	 SAKS INCORPORATED,
 as Servicer
  
 By:    /s/ CHARLES J. HANSEN                

 Name:     Charles J. Hansen
 Title:      Senior Vice President

	
	 	  	 HRSI FUNDING, INC. III
 as Successor Transferor
  
 By:          /s/ S. H.
SMITH                

 Name:     S. H. Smith
 Title:      Vice President and Treasurer

	
	 	  	 HOUSEHOLD FINANCE CORPORATION
 as Successor Servicer
  
 By:    /s/ B.B. MOSS,
JR.                

 Name:     B.B. Moss, Jr.
 Title:      Vice President and Treasurer

	
	 	  	 WELLS FARGO BANK MINNESOTA,
  
 NATIONAL ASSOCIATION,
 as Trustee
  
 By:    /s/ JEANINE C.
CASEY            

 Name:     Jeanine C. Casey
 Title:       Corporate Trust Officer
  

 
 

16 

 
EXHIBIT A

 
AMENDMENT NO. 1 TO THE 
SERIES 2001-2 SUPPLEMENT TO THE 
MASTER POOLING AND SERVICING AGREEMENT 
 
Section 4.2(a) of the Series 2001-2 Supplement shall be amended in its entirety to read as follows: 
 
“(a)    The Servicer shall apply, or shall instruct the Trustee to apply, all Collections, and
other funds held in the Collection Account that are allocated to Series 2001-2 as described in this Article IV. Provided that daily deposits of Collections into the Collection Account are required pursuant to Section 4.1(f) of the Agreement, the
applicable Investor Percentage of Finance Charge Collections shall be deposited into the Collection Account on a daily basis. If the amount on deposit in the Collection Account in respect of the applicable Investor Percentage of Finance Charge
Collections is less than the sum of: (i) the sum of Class A Monthly Interest, Class B Monthly Interest and Class C Monthly Interest due on the next succeeding Distribution Date, (ii) if Saks is no longer the Servicer, the Servicing Fee due on the
next succeeding Distribution Date, and (iii) an amount equal to the product of (a) the Default Amount allocated to Series 2001-2 for the immediately preceding Monthly Period and (b) a factor of 1.80, or such lesser factor as may be determined by the
Servicer subject to the Rating Agency Condition, then Class B Subordinated Principal Collections and Collateral Subordinated Principal Collections shall also be deposited into the Collection Account until such time that such deficiency is
eliminated.”

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