Document:

EX-10.6

 

EXHIBIT
10.6

EXECUTION COPY

HSBC Private Label Credit Card Master Note Trust (USA) I

Series 2002-2

AMENDMENT NO. 1 TO SERIES 2002-2 INDENTURE SUPPLEMENT

               AMENDMENT NO. 1, dated as of August 11, 2006 (“Amendment”), 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, Paying Agent and the Securities Intermediary, to the Series 2002-2 Indenture Supplement
dated as of March 28, 2002 by and between such parties ( the “Indenture Supplement”) under
the Amended and Restated Master Indenture, dated as of August 11, 2006 (the “Indenture”,
and together with the Indenture Supplement, the “Agreement”).

               WHEREAS, the Issuer and the Indenture Trustee wish to amend the Indenture Supplement.

               NOW, THEREFORE, the Issuer and the Indenture Trustee agree that the Indenture Supplement is
hereby amended effective as of the date hereof as follows:

          Section 1. Amendment to Section 2.01 (“Definitions”).

               (a) The definitions of “Administration Fee” and “Monthly Administration Fee” are
each hereby deleted in their entirety.

               (b) The definition of “Eligible Investments” is hereby amended by adding the following to the
end of the definition:

     “and (c) investments in notes issued by HSBC Finance Corporation (i) shall not qualify
as Eligible Investments for the Principal Funding Account the Reserve Account or the
Special Funding Account unless rated “A-1+” by S&P, and (ii) shall not qualify as Eligible
Investments for the Collection Account in an amount in excess of 20% of the Outstanding
Amount of the Notes.”

          Section 2. Amendment to Section 4.04 (“Application of Available Funds on Deposit in the Collection
Account”). Sections 4.04(a)(iv)(B) and 4.04(a)(ix) of the Indenture Supplement are hereby
deleted in its entirety.

          Section 3. Confirmation of Subordination of Payment of Servicing Fee. Notwithstanding Section 5.05(b)
of the Indenture, as long as Series 2002-2 remains outstanding, the Servicer agrees to subordinate
its right of payment of the Servicing Fee pursuant to Section 5.05(b) SECOND of the Indenture to
the payments to be made to the Holders of the Notes of Series 2002-2 pursuant to Section 5.05(b)
THIRD and FOURTH of the Indenture.

 

 

          Section 4. Counterparts. This Amendment to the Indenture Supplement may be executed in several
counterparts, each of which shall be deemed an original hereof and all of which, when taken
together, shall constitute one and the same Amendment to the Indenture Supplement.

          Section 5. Ratification of Indenture Supplement. Except as provided herein, all provisions, terms and
conditions of the Indenture Supplement shall remain in full force and effect. As amended hereby,
the Indenture Supplement is ratified and confirmed in all respects.

          Section 6. Authorization. The Owner Trustee is hereby directed by HSBC Funding (USA) Inc. V to
execute and deliver this Amendment on behalf of the Trust. HSBC Funding (USA) Inc. V hereby
certifies to the Owner Trustee that all conditions precedent to the Owner Trustee’s execution and
delivery of this Amendment have been satisfied.

          Section 7. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS.

[Remainder Of Page Intentionally Left Blank]

2

 

          IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date set forth
on the first page hereof.

	 	 	 	 	 	 	 
	 	 	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	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rachel L. Simpson	 	 
	 

	 	 	 	 

Name: Rachel L. Simpson
	 	 
	 

	 	 	 	Title: Sr. Financial Services Officer	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,	 	 
	 	 	as Indenture Trustee, Paying Agent and Securities
Intermediary	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Patricia M. Child	 	 
	 

	 	 	 	 

Name: Patricia M. Child
	 	 
	 

	 	 	 	Title: Vice President	 	 

     The undersigned hereby consent to this Amendment as of the date hereof.

	 	 	 	 	 
	HSBC FUNDING (USA) INC. V,	 	 
	as Transferor	 	 
	 
	 	 	 	 
	By:

	 	/s/ Steven H. Smith	 	 
	 

	 	 

Name: Steven H. Smith
	 	 
	 

	 	Title: Vice President and Assistant Treasurer	 	 
	 
	 	 	 	 
	HSBC FINANCE CORPORATION,	 	 
	as Servicer	 	 
	 
	 	 	 	 
	By:

	 	/s/ William H. Kessler	 	 
	 

	 	 

Name: William H. Kessler
	 	 
	 

	 	Title: Senior Vice President – Treasurer	 	 

Signature Page to Amendment No. 1 to Series 2002-2 Indenture Supplement<PAGE>

                                                               EXECUTION VERSION

           AMENDMENT NUMBER 1 TO THE POOLING AND SERVICING AGREEMENT

     Amendment Number 1, dated as of August 15, 2006 (this "Amendment") to the
Pooling and Servicing Agreement, dated as of February 1, 2006 (the "Agreement"),
by and among MERRILL LYNCH MORTGAGE INVESTORS, INC., a Delaware corporation, as
depositor (the "Depositor"), PHH MORTGAGE CORPORATION, a New Jersey corporation,
as servicer (the "Servicer"), and WELLS FARGO BANK, N.A., a national banking
association, as trustee (the "Trustee"), relating to the Merrill Lynch Mortgage
Investors Trust, Series MLCC 2006-1.

     WHEREAS, Section 11.03(b) of the Agreement provides that the Agreement may
be amended from time to time by the Depositor, the Servicer and the Trustee,
with the prior written consent of the Holders of not less than 66-2/3% of the
Class Principal Amount (or Percentage Interest) of each Class of Certificates
affected thereby for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Agreement or of modifying in
any manner the rights of the Holders; provided that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate, without
the consent of the Holder of such Certificate or (ii) reduce the aforesaid
percentages of Class Principal Amount (or Percentage Interest) of Certificates
of each Class, the Holders of which are required to consent to any such
amendment without the consent of the Holders of 100% of the Class Principal
Amount (or Percentage Interest) of each Class of Certificates affected thereby;

     WHEREAS, in accordance therewith, by the execution and delivery of this
Amendment and the Consent of the Holders of the Class II-A-2 Certificates, the
parties hereby amend the Agreement to the extent and on the terms set forth in
this Amendment.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained,
each party hereto agrees as follows for the benefit of the other parties and for
the benefit of the Certificateholders:

                                   ARTICLE I

                Cross Reference to Definitions in the Agreement
                -----------------------------------------------

     SECTION 1.01.  Capitalized terms used in this Amendment and not defined
herein or amended by the terms of this Amendment shall have the meanings
assigned to such terms in the Agreement.

                                   ARTICLE II

                                 Effectiveness
                                 -------------

     SECTION 2.01.  Section 11.03(b) of the Agreement provides that the
Agreement may be amended from time to time by the Depositor, the Servicer and
the Trustee, with the with the prior written consent of the Holders of not less
than 66-2/3% of the Class Principal Amount (or Percentage Interest) of each
Class of Certificates affected thereby for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of the
Agreement or of modifying in any manner the rights of the Holders; provided that
no such amendment may

<PAGE>

(i) reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans which are required to be distributed on any
Certificate, without the consent of the Holder of such Certificate or (ii)
reduce the aforesaid percentages of Class Principal Amount (or Percentage
Interest) of Certificates of each Class, the Holders of which are required to
consent to any such amendment without the consent of the Holders of 100% of the
Class Principal Amount (or Percentage Interest) of each Class of Certificates
affected thereby.

     SECTION 2.02.  By their execution of this Amendment, the Depositor, the
Servicer and the Trustee agree to make the amendments to the Agreement set forth
below.

                                  ARTICLE III

                          Amendments to the Agreement
                          ---------------------------

       SECTION 3.01.  Section 5.03 of the Agreement is hereby amended by:

      (a)  deleting clause (ii) in its entirety and replacing it with the
           following:

            "(ii)  commencing on the Credit Support Depletion Date, Realized
      Losses will be allocated among the Senior Certificates as follows:

            first, if the Realized Loss occurs on a Mortgage Loan in a Mortgage
      Pool where the aggregate Stated Principal Balance of the Mortgage Loans in
      such Mortgage Pool is greater than the aggregate Class Principal Amount of
      the related Senior Certificates, the Realized Loss will be allocated to
      any Senior Certificates related to a Mortgage Pool where the aggregate
      Stated Principal Balance of the Mortgage Loans in such Mortgage Pool is
      less than the aggregate Class Principal Amount of the related Senior
      Certificates (any such amount, the "Deficiency Amount"), pro rata, based
      on the respective Deficiency Amount, in each case until the amount by
      which the aggregate Stated Principal Balance of the Mortgage Loans in the
      Mortgage Pool in which the Realized Loss occurs exceeds the aggregate
      Class Principal Amount of the related Senior Certificates until the Class
      Principal Amounts of such Senior Certificates have been reduced to zero;
      provided, however, that any portion of any Realized Loss that would
      otherwise be allocated to the Class II-A-1 Certificates will instead be
      allocated first to the Class II-A-2 Certificates until the Class
      Certificate Balance thereof has been reduced to zero; and second, to the
      Senior Certificates related to the Mortgage Pool in which the Realized
      Loss occurred, until the Class Principal Amounts thereof have been reduced
      to zero."

                                   ARTICLE IV

                                 Miscellaneous
                                 -------------

     SECTION 4.01. Counterparts. This Amendment 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 together shall constitute one and the
same instrument.

     SECTION 4.02. Headings. The headings herein are for purposes of reference
only and shall not otherwise affect the meaning or interpretation of any
provision hereof.

<PAGE>

     SECTION 4.03. Agreement in Full Force and Effect as Amended. Except as
specifically amended hereby, all of the terms and conditions of the Agreement
shall remain in full force and effect. All references to the Agreement in any
other document or instrument shall be deemed to mean such Agreement as amended
by this Amendment. This Amendment shall not constitute a novation of the
Agreement, but shall constitute an amendment thereof. The parties hereto agree
to be bound by the terms and obligations of the Agreement, as amended by this
Amendment, as though the terms and obligations of the Agreement were set forth
herein.

     SECTION 4.04. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICTS OF LAW PROVISIONS.

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their respective officers as of the day and year first above
written.

                              MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                   as Depositor

                              By:
                                    ----------------------------------------
                              Name:
                              Title:

                              PHH MORTGAGE CORPORATION,
                                   as Servicer

                              By:
                                     ----------------------------------------
                              Name:
                                     ----------------------------------------
                              Title:
                                     ----------------------------------------

                              WELLS FARGO BANK, N.A.,
                                   not in its individual capacity,
                                   but solely as Trustee

                              By:
                                   ----------------------------------------
                              Name:
                              Title:

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