Document:

Amended and Restated Receivables Purchase Agreement

 EXHIBIT 10.2 
 EXECUTION COPY 
  

 HSBC BANK NEVADA, NATIONAL ASSOCIATION 
 and 
 HSBC PRIVATE LABEL ACQUISITION CORPORATION (USA) 
 SECOND AMENDED AND RESTATED 
 RECEIVABLES PURCHASE AGREEMENT 
 Dated as of October 25, 2006 
 Amending
and restating in full the Amended and Restated 
 Receivables Purchase Agreement dated as of June 12, 2002 
  

					
	ARTICLE I	  	DEFINITIONS	  	1
			
	 Section 1.01.
	  	 Definitions
	  	1
	 Section 1.02.
	  	 Other Definitional Provisions
	  	5
			
	ARTICLE II	  	PURCHASE AND CONVEYANCE OF RECEIVABLES	  	5
			
	 Section 2.01.
	  	 Purchase
	  	5
	 Section 2.02.
	  	 Addition of Additional Accounts
	  	7
			
	ARTICLE III	  	CONSIDERATION AND PAYMENT	  	7
			
	 Section 3.01.
	  	 Purchase Price
	  	7
	 Section 3.02.
	  	 Adjustments to Purchase Price
	  	8
	 Section 3.03.
	  	 Use of Name, Logo and Marks
	  	8
			
	ARTICLE IV	  	REPRESENTATIONS AND WARRANTIES	  	8
			
	 Section 4.01.
	  	 Representations and Warranties of the Bank Relating to the Bank
	  	8
	 Section 4.02.
	  	 Representations and Warranties of the Bank Relating to the Agreement and the Receivables
	  	10
	 Section 4.03.
	  	 Representations and Warranties of HPLAC
	  	11
			
	ARTICLE V	  	COVENANTS	  	12
			
	 Section 5.01.
	  	 Covenants of the Bank
	  	12
			
	ARTICLE VI	  	REPURCHASE OBLIGATION	  	13
			
	 Section 6.01.
	  	 Repurchase Obligation Termination
	  	14
			
	ARTICLE VII	  	CONDITIONS PRECEDENT	  	14
			
	 Section 7.01.
	  	 Conditions to HPLAC’s Obligations
	  	14
	 Section 7.02.
	  	 Conditions Precedent to the Bank’s Obligations
	  	14
			
	ARTICLE VIII	  	TERM AND PURCHASE TERMINATION	  	15
			
	 Section 8.01.
	  	 Term
	  	15
	 Section 8.02.
	  	 Purchase Termination
	  	15
			
	ARTICLE IX	  	MISCELLANEOUS PROVISIONS	  	15
			
	 Section 9.01.
	  	 Amendment
	  	15
	 Section 9.02.
	  	 Governing Law
	  	16
	 Section 9.03.
	  	 Notices
	  	16
	 Section 9.04.
	  	 Severability of Provisions
	  	16
	 Section 9.05.
	  	 Assignment
	  	16
	 Section 9.06.
	  	 Acknowledgement and Agreement of the Bank
	  	17
	 Section 9.07.
	  	 Further Assurances
	  	17
	 Section 9.08.
	  	 No Waiver; Cumulative Remedies
	  	17
	 Section 9.09.
	  	 Counterparts
	  	18

					
	 Section 9.10.
	  	 Binding; Third-Party Beneficiaries
	  	18
	 Section 9.11.
	  	 Merger and Integration
	  	18
	 Section 9.12.
	  	 Headings
	  	18
	 Section 9.13.
	  	 Schedules and Exhibits
	  	18
	 Section 9.14.
	  	 Nonpetition Covenant
	  	18
	Schedule I	  	LIST OF ACCOUNTS	  	I-1
			
	Schedule II	  	EXCLUDED ACCOUNT SCHEDULE	  	II-1
			
	Schedule III	  	ENTITIES TO WHICH RECEIVABLES MAY BE SOLD	  	III-1

  

 ii 

 SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as of October 25, 2006, by and
between HSBC PRIVATE LABEL ACQUISITION CORPORATION (USA), a Delaware corporation (“HPLAC”), and HSBC BANK NEVADA, NATIONAL ASSOCIATION, a national banking association (the “Bank”), which amends and restates the
Amended and Restated Receivables Purchase Agreement, dated as of June 12, 2002, as amended, by and between Household Receivables Acquisition Company (“HRAC”) and the Bank. 
 W I T N E S S E T H: 
 WHEREAS, HPLAC desires
to purchase on each Business Day all Receivables (hereinafter defined) arising under all revolving credit accounts arising under the private label program (other than Excluded Accounts) owned by the Bank; 
 WHEREAS, the Bank desires to sell and assign on each Business Day all Receivables arising under the private label program (other than Excluded Accounts)
to HPLAC upon the terms and conditions hereinafter set forth; 
 WHEREAS, pursuant to the Receivables Sale and Purchase, Assignment and
Assumption Agreement, dated as of December 29, 2004, by and between HRAC and HPLAC, HRAC sold, conveyed, transferred and assigned to HPLAC all right, title, interest and obligations of HRAC in and to any Receivables; 
 WHEREAS, it is contemplated that certain of the Receivables purchased hereunder have been, or will be, transferred by HPLAC to HSBC Funding (USA) Inc. V
then to the Trust (hereinafter defined) in connection with the issuance of certain securities; 
 WHEREAS, the Bank and HPLAC desire to amend
this Agreement. 
 NOW, THEREFORE, it is hereby agreed by and between HPLAC and the Bank as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01. Definitions. All capitalized terms used herein or in any certificate or document, made or delivered pursuant hereto, and not
defined herein or therein, shall have the meaning ascribed thereto in the Transfer and Servicing Agreement; in addition, the following words and phrases shall have the following meanings: 
 “Account” shall mean (a) each Initial Account, (b) each Additional Account (but only from and after the Addition Date with
respect thereto), (c) each Related Account, (d) each account into which an Account shall be transferred (a “Transferred Account”), provided that (i) such transfer was made in accordance with the Credit
Guidelines and (ii) such account can be traced or identified as an account into which an Account has been transferred, and (e) each Newer Account, but shall exclude (f) Excluded Accounts. 

 “Account Owner” shall mean the Bank. 
 “Account Schedule” shall mean a computer file or microfiche list containing a true and complete list of all Accounts or Excluded
Accounts, as applicable, each identified by account number. 
 “Addition Date” shall mean with respect to Additional
Accounts designated prior to the Transition Date (or related Participation Interests), the date from and after which such Additional Accounts were included as Accounts pursuant to Section 2.02. 
 “Addition Notice Date” shall have the meaning specified in Section 2.02 of this Agreement. 
 “Additional Account” shall mean each Account designated prior to the Transition Date pursuant to Section 2.02 and that is
identified in the computer file or microfiche list delivered to HPLAC by the Bank pursuant to Section 2.01. 
 “Additional
Cut-Off Date” shall mean with respect to Additional Accounts, the date specified as such in the notice delivered with respect thereto pursuant to Section 2.02. 
 “Agreement” shall mean this Second Amended and Restated Receivables Purchase Agreement and all amendments hereof and supplements hereto.

 “Bank” shall mean HSBC Bank Nevada, National Association (formerly known as Household Bank (SB), N.A.), a nationally
chartered bank, and its successors and permitted assigns. 
 “Business Day” shall mean any day other than (a) a
Saturday or Sunday or (b) any other day on which national banking associations or state banking institutions in New York City, New York, Delaware, Nevada, Illinois or any other State in which the principal executive offices of the Bank, the
Servicer, the Owner Trustee or the Indenture Trustee, as the case may be, are located, are authorized or obligated by law, executive order or governmental decree to be closed. 
 “Closing Date” shall mean June 12, 2001. 
 “Company” shall mean HSBC Funding (USA) Inc. V (formerly known as HRSI Funding, Inc. II), a Delaware corporation, and its permitted successors and assigns. 
 “Conveyance” shall have the meaning specified in subsection 2.01(a). 
 “Credit Adjustment” shall have the meaning specified in Section 3.02. 
 “Debtor Relief Laws” shall mean (a) the Bankruptcy Code of the United States of America and (b) all other applicable
liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments, readjustment of debt, marshalling of assets or similar debtor relief laws of the United States, any state or any
foreign country from time to time in effect affecting the rights of creditors generally. 
  

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 “Excluded Account” shall mean any revolving credit account as to which the Bank and
HPLAC have elected to exclude the related Receivables from sale under this Agreement in accordance with subsection 2.01(f) hereof. 
 “FDIC” shall mean the Federal Deposit Insurance Corporation or any successor. 
 “Finance Charge and
Administrative Receivables” shall mean all Receivables in the Accounts which would be treated as “Finance Charge and Administrative Receivables” in accordance with the definition for such term in the Transfer and Servicing
Agreement. 
 “HPLAC” shall mean HSBC Private Label Acquisition Corporation (USA) (successor in interest of HRAC for
purposes of this Agreement), a Delaware corporation, and its successors and permitted assigns. 
 “HRAC” shall mean
Household Receivables Acquisition Company, a Delaware corporation, and its successors and permitted assigns. 
 “Indenture”
shall mean the Amended and Restated Master Indenture between the Trust and U.S. Bank National Association, as Indenture Trustee, dated as of August 11, 2006 as supplemented by Indenture Supplements applicable to any Series that may be issued
from time to time. 
 “Indenture Supplement” shall mean the indenture supplement pursuant to which a Series is issued.

 “Indenture Trustee” shall mean U.S. Bank National Association in its capacity as indenture trustee, or any successor
indenture trustee. 
 “Initial Account” shall mean each Account included in the computer file delivered pursuant to
Section 2.01(c)(ii)(A) of this Agreement to HPLAC or its designee in respect of the Closing Date. 
 “Insolvency Event”
shall have the meaning specified in Section 8.02. 
 “New Principal Receivables” shall have the meaning set forth in
Section 3.01. 
 “Newer Account” shall mean each revolving credit account (a) which has been established under the
private label program of the Bank, (b) which is owned by the Bank on or after the Transition Date, (c) which was not designated as an Account under this Agreement prior to the Transition Date, and (d) which is not an Excluded Account.

 “Obligor” shall mean, with respect to each Account, each person that would be treated as an “Obligor” in
accordance with the definition for such term in the Transfer and Servicing Agreement. 
 “Owner Trustee” shall mean
Wilmington Trust Company, a Delaware banking corporation the institution executing the HSBC Private Label Credit Card Master Note Trust (USA) I Amended and Restated Trust Agreement, dated as of August 11, 2006 with HSBC Funding (USA) Inc. V, as
and acting in the capacity of Owner Trustee thereunder, or its successor in interest, or any successor trustee appointed as provided thereunder. 
  

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 “Principal Receivables” shall mean all Receivables other than Finance Charge and
Administrative Receivables. In calculating the aggregate amount of Principal Receivables on any day, the amount of Principal Receivables shall be reduced by the aggregate amount of credit balances in the Accounts and Additional Accounts on such day.

 “Purchase Price” shall have the meaning set forth in Section 3.01. 
 “Purchased Assets” shall have the meaning set forth in Section 2.01. 
 “Receivables” shall mean all amounts shown on the Bank’s records as amounts payable by Obligors on any Account from time to time,
including amounts payable for Principal Receivables and Finance Charge and Administrative Receivables. 
 “Securitized
Accounts” shall mean the Accounts related to Securitized Receivables. 
 “Securitization Date” shall mean with
respect to the Receivables arising under a Newer Account, the date when such Receivables are transferred to the Company or the Trust. 
 “Securitized Receivables” shall mean Receivables which are owned by the Company, the Trust, Household Private Label Credit Card Master Note Trust II and HSBC Funding (USA) Inc. V and successors and permitted assigns.

 “Servicer” shall mean HSBC Finance Corporation, in its capacity as Servicer pursuant to the Transfer and Servicing
Agreement and, after any Service Transfer, the Successor Servicer. 
 “Transfer and Servicing Agreement” shall mean the
Amended and Restated Transfer and Servicing Agreement, dated as of August 11, 2006 among HSBC Finance Corporation, as Servicer, HSBC Funding (USA) Inc. V, as Transferor, and the Owner Trustee on behalf of the Trust, and all amendments and
supplements thereto. 
 “Transferor RPA” shall mean the Amended and Restated Receivables Purchase Agreement, dated
August 11, 2006, between HPLAC and HSBC Funding (USA) Inc. V, and all amendments and supplements thereto. 
 “Transition
Date” shall mean July 1, 2002. 
 “Trust” shall mean the HSBC Private Label Credit Card Master Note Trust
(USA) I (formerly known as the Household Private Label Credit Card Master Note Trust I), acting by and through Wilmington Trust Company, not in its individual capacity but solely as owner trustee. 
 “Trust Collateral” shall have the meaning set forth in Section 2.01. 
  

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 Section 1.02. Other Definitional Provisions. 
 All terms defined in 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 words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; and Section, Subsection, Schedule and Exhibit references
contained in this Agreement are references to Sections, Subsections, Schedules and Exhibits in or to this Agreement unless otherwise specified. 
 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. 
 ARTICLE II 
 PURCHASE AND CONVEYANCE OF RECEIVABLES 
 Section 2.01. Purchase. 
 (a) By
execution of this Agreement, the Bank does hereby sell, transfer, assign, set over and otherwise convey to HPLAC (collectively, the “Conveyance”), without recourse except as provided herein, all its right, title and interest
in, to and under the Receivables existing at the close of business on (i) the Closing Date, in the case of Receivables arising in the Initial Accounts, (ii) each Additional Cut-Off Date, in the case of Receivables arising in the Additional
Accounts and the related Participation Interests conveyed pursuant to a Participation Interest Supplement, and (iii) commencing on the Transition Date, the day the Bank acquires rights in the related Newer Account, in the case of Receivables
arising in the Newer Accounts, and in each case thereafter created from time to time until the termination of this Agreement pursuant to Article VIII hereof, all Recoveries with respect to such Accounts and all such Participation Interests, all
monies due or to become due and all amounts received or receivable with respect thereto, and all proceeds (including, without limitation, “proceeds” as defined in the UCC) thereof (the “Purchased Assets”).

 (b) In connection with such Conveyance, the Bank agrees (i) to record and file, at its own expense, any financing statements (and
continuation statements with respect to such financing statements when applicable) with respect to the Receivables and Participation Interests conveyed pursuant to a Participation Interest Supplement, meeting the requirements of applicable state law
in such manner and in such jurisdictions as are necessary to perfect, and maintain perfection of, the Conveyance of such Receivables and all such Participation Interests from the Bank to HPLAC, (ii) that such financing statements shall name the
Bank, as seller, and HPLAC, as purchaser, of the Receivables and all such Participation Interests and (iii) to deliver a file-stamped copy of such financing statements or other evidence of such filings (excluding such continuation statements,
which shall be delivered as filed) to HPLAC as soon as is practicable after filing. 
  

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 (c) In connection with each such Conveyance, the Bank further agrees that it will, at its own expense, on
or prior to (A) the Closing Date, in the case of Initial Accounts, (B) the applicable Addition Date, in the case of Additional Accounts, and (C) the applicable Securitization Date, in the case of the related Newer Accounts, indicate
in its computer files that, Receivables created in connection with such Accounts have been conveyed to HPLAC in accordance with this Agreement and, as applicable, have been conveyed by HPLAC to the Company in accordance with the Transferor RPA and,
as applicable, have been conveyed by the Company to the Trust pursuant to the Transfer and Servicing Agreement and, as applicable, have been pledged by the Trust to the Indenture Trustee pursuant to the Indenture for the benefit of the Noteholders
or otherwise conveyed by including in such computer files the code that identifies each such Account. On or prior to each Securitization Date, HPLAC will prepare a computer file or microfiche list containing a true and complete list of Securitized
Accounts specifying, as of the Closing Date, in the case of the Initial Accounts, the applicable Additional Cut-Off Date, in the case of Additional Accounts, and the applicable Securitization Date, in the case of the related Newer Accounts,
(1) its account number, (2) the aggregate amount outstanding in such Account and (3) the aggregate amount of Principal Receivables in such Account. Each such computer file or microfiche list, as supplemented from time to time to
reflect Additional Accounts or Securitized Accounts, as appropriate, shall be an Account Schedule marked as Schedule I to this Agreement, shall be delivered to the Bank, or its designee, and is hereby incorporated into and made a part
of this Agreement. The Bank further agrees not to alter the code referenced in the first sentence of this paragraph with respect to any such Account during the term of this Agreement. 
 (d) The parties hereto intend that the conveyance of the Bank’s right, title and interest in and to the Purchased Assets shall constitute an
absolute sale, conveying good title free and clear of any liens, claims, encumbrances or rights of others from the Bank to HPLAC and that the Purchased Assets shall not be part of the Bank’s estate in the event of the insolvency of the Bank or
a conservatorship, receivership or similar event with respect to the Bank. It is the intention of the parties hereto that the arrangements with respect to the Purchased Assets shall constitute a purchase and sale of such Purchased Assets and not a
loan or a borrowing secured by such Purchased Assets. In the event, however, that it were to be determined that the transactions evidenced hereby constitute a loan and not a purchase and sale, it is the intention of the parties hereto that this
Agreement shall constitute a security agreement under applicable law, and that the Bank shall be deemed to have granted and does hereby grant to HPLAC a first priority perfected security interest in all of the Bank’s right, title and interest,
whether now owned or hereafter acquired, in, to and under the Receivables and other Purchased Assets to secure the obligations of the Bank hereunder. 
 (e) To the extent that the Bank retains any interest in the Purchased Assets, the Bank hereby grants to the Indenture Trustee for the benefit of the Noteholders a security interest in all of the Bank’s right,
title, and interest, whether now owned or hereafter acquired, in, to, and under the Securitized Receivables and other related Purchased Assets that are pledged to the Indenture Trustee pursuant to the Indenture (collectively, the “Trust
Collateral”), to secure the performance of all of the obligations of the Bank under this Agreement and any other agreement or document related to the Transfer and Servicing Agreement or the Indenture. With respect to the Trust
Collateral, the Indenture Trustee shall have all of the rights that it has under the Transfer and Servicing Agreement and the Indenture and all of the rights of a secured creditor under the UCC. 
  

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 (f) The Bank and HPLAC may designate revolving credit accounts which would otherwise be Accounts as
Excluded Accounts and the Receivables related to such Excluded Accounts shall be excluded from sale hereunder. This designation shall be evidenced by the Bank in an Account Schedule, and such Account Schedule, as amended and supplemented from time
to time, shall be incorporated into and marked as Schedule II to this Agreement. 
 Section 2.02. Addition of
Additional Accounts. Prior to the Transition Date, if, from time to time, the Company becomes obligated to designate Additional Accounts (as such term is defined in the Transfer and Servicing Agreement) pursuant to subsection 2.09(a) of the
Transfer and Servicing Agreement, then HPLAC may, at its option, give the Bank written notice thereof on or before the fifth Business Day (the “Addition Notice Date”) prior to the Addition Date therefor, and upon receipt of
such notice the Bank shall on or before such Addition Date, designate sufficient Eligible Accounts to be included as Additional Accounts so that after the inclusion thereof HPLAC will be in compliance with the requirements of said subsection
2.09(a). Prior to the Transition Date, additionally, subject to subsections 2.09(b) and (c) of the Transfer and Servicing Agreement, from time to time Eligible Accounts may be designated to be included as Additional Accounts upon the mutual
agreement of the Company, HPLAC and the Bank. In either event, the Bank shall have sole responsibility for selecting the Additional Accounts. On the Addition Date with respect to any designation of Additional Accounts, HPLAC has purchased the
Bank’s right, title and interest in, to and under the Receivables in such Additional Accounts (and such Additional Accounts shall be deemed to be Accounts for purposes of this Agreement) and the related Purchased Assets. 
 ARTICLE III 
 CONSIDERATION AND PAYMENT

 Section 3.01. Purchase Price. 
 (a) The “Purchase Price” for the Receivables in the Initial Accounts and the related Purchased Assets conveyed to HPLAC by the Bank under this Agreement shall be payable on the Closing Date and
shall be an amount equal to 100% of the aggregate balance of Principal Receivables in those Accounts as of the Closing Date, plus the present value of anticipated excess spread, computed by taking into account factors such as historical losses,
servicing fees, delinquencies and paydown rates, yield and such other factors as the Bank and HPLAC mutually agree (and discounted to take into account any uncertainty as to future performance matching historical performances), will result in a
Purchase Price determined to be the fair market value of such Purchased Assets. This computation of initial purchase price shall assume no reinvestment in new Receivables. The Purchase Price for the Receivables and the related Purchased Assets
(including Receivables and the related Purchased Assets in Additional Accounts) to be conveyed to HPLAC under this Agreement which come into existence after the Closing Date, shall be payable no later than the Distribution Date following the Due
Period in which such Receivables and Purchased Assets are conveyed by the Bank to HPLAC in an amount equal to 100% of the aggregate balance of the Principal Receivables so conveyed (the “New Principal Receivables”), plus the
present value of anticipated excess spread, computed by taking into account factors such as historical losses, servicing fees, delinquencies, paydown rates and yield and such other factors as the Bank and HPLAC may mutually agree so as to result in
a 
  

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 Purchase Price determined to be the fair market value of such Purchased Assets. The Bank and HPLAC confirm that a
Purchase Price equal to the fair market value of all Purchased Assets sold to HPLAC through the date hereof has been paid by HPLAC to the Bank. The Purchase Price shall be paid in cash (including netting against other payments) or in other
immediately available funds by HPLAC. 
 (b) Notwithstanding any other provision of this Agreement, the Bank shall not be obligated to
continue to sell Purchased Assets to HPLAC to the extent that the Bank is not paid the Purchase Price therefor as provided herein. 
 Section 3.02. Adjustments to Purchase Price. The Purchase Price shall be adjusted on each purchase price payment date (a “Credit Adjustment”) with respect to any Receivable previously conveyed to HPLAC by the
Bank which has since been reversed because of a rebate, refund, unauthorized charge or billing error to a cardholder because such Receivable was created in respect of merchandise which was refused or returned by a cardholder. The amount of such
adjustment shall equal (x) the reduction in the principal balance of such Receivable resulting from the occurrence of such event multiplied by (y) the quotient (expressed as a percentage) of (i) the Purchase Price for Principal
Receivables payable on such date computed in accordance with Section 3.01(a) divided by (ii) the Principal Receivables paid for on such date pursuant to such Section. In the event that an adjustment pursuant to this Section 3.02
causes the Purchase Price to be a negative number, the Bank agrees that, not later than 1:00 P.M. New York City time on such date, the Bank shall pay to HPLAC an amount equal to the amount by which the Purchase Price minus the Credit Adjustment
would be reduced below zero. 
 Section 3.03. Use of Name, Logo and Marks. The Bank does hereby grant to HPLAC and the Servicer a
non-exclusive license to use the name “HSBC Bank Nevada, National Association” and all related identifying trade or service marks, signs, symbols, logos, designs, servicing software, customer lists and other intangibles in connection with
the servicing of the Receivables purchased hereunder. The license granted shall be co-extensive with the term of the Agreement. 
 ARTICLE IV

 REPRESENTATIONS AND WARRANTIES 
 Section 4.01. Representations and Warranties of the Bank Relating to the Bank. The Bank hereby represents and warrants to, and agrees with, HPLAC as of the Closing Date, on each Addition Date and on each day on or after the
Transition Date, that: 
 (a) the Bank is a national bank duly organized and validly existing in good standing under the laws of the United
States and has, in all material respects, full power and authority to own its properties and conduct its business as such properties are presently owned and such business is presently conducted, and to execute, deliver and perform its obligations
under this Agreement; 
 (b) the Bank is duly qualified to do business and is in good standing as a foreign corporation (or is exempt from
such requirements) and has obtained all necessary 
  

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 licenses and approvals, in each jurisdiction in which failure to so qualify or to obtain such licenses and approvals
would (i) render any Credit Agreement relating to an Account or any Receivable unenforceable by the Bank, HPLAC, the Company or the Owner Trustee on behalf of the Trust and (ii) have a material adverse effect on the Noteholders;

 (c) the execution, delivery and performance of this Agreement and any other document or instrument delivered pursuant hereto, and the
consummation of the transactions provided for in this Agreement and any other document or instrument delivered hereto have been duly authorized by the Bank by all necessary corporate action on the part of the Bank; 
 (d) the execution and delivery of this Agreement and any other document or instrument delivered hereto by the Bank, the performance of the transactions
contemplated by this Agreement, and the fulfillment of the terms of this Agreement applicable to the Bank will not conflict with, violate or result in any breach of any of the material terms and provisions of, or constitute (with or without notice
or lapse of time or both) a material default under, any indenture, contract, agreement, mortgage, deed of trust, or other instrument to which the Bank is a party or by which it or any of its properties are bound; 
 (e) the execution, delivery and performance of this Agreement by the Bank and the fulfillment of the terms contemplated herein and therein applicable to
the Bank will not conflict with or violate any Requirements of Law applicable to the Bank; 
 (f) there are no proceedings or investigations
pending or, to the best knowledge of the Bank, threatened against the Bank, before any Governmental Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated
by this Agreement, (iii) seeking any determination or ruling that, in the reasonable judgment of the Bank, would materially and adversely affect the performance by the Bank of its obligations under this Agreement, or (iv) seeking any
determination or ruling that would materially and adversely affect the validity or enforceability of this Agreement; 
 (g) all
authorizations, consents, orders or approvals of or registrations or declarations with any Governmental Authority required to be obtained, effected or given by the Bank in connection with the execution and delivery by the Bank of this Agreement and
any other document or instrument delivered hereto and the performance of the transactions contemplated by this Agreement by the Bank have been duly obtained, effected or given and are in full force and effect; 
 (h) the Bank does not own directly or indirectly any ownership interest in HPLAC, the Company or the Trust; 
 (i) the consolidated financial statements of the Bank do not include the assets or liabilities of HPLAC, the Company or the Trust; 
 (j) the Bank has conducted and will conduct its business solely in its own name through its duly authorized officers or agents so as not to mislead
others as to the identify of the entity with which those others are concerned; 
 (k) the Bank has maintained and will maintain its corporate
records and books of account separate, and apart from those of the Trust; 
  

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 (l) the assets of the Bank (including its funds) have not been and will not be commingled with those of
the Trust; 
 (m) the board of directors of the Bank has held and will hold all appropriate meetings or will properly execute written
consents with respect to all actions requiring such consents; 
 (n) the Bank has been and will be adequately capitalized as defined in 12
U.S.C. §1831 o(b)(1)(B) in light of its contemplated business obligations; 
 (o) the Bank has not and will not guaranty debts of the
Trust; 
 (p) the Bank has not and will not acquire obligations or securities of, or make loans or advances to, the Trust; 
 (q) the Bank has received fair consideration in exchange for its interests in the related Receivables; 
 (r) the Bank will treat the transfer to HPLAC of the related Receivables as a sale for tax and accounting purposes; and 
 (s) there are no agreements or understandings between the Bank and the Trust relating to the related Receivables, except as set forth in the Transaction
Documents. 
 The representations and warranties set forth in this Section 4.01 shall survive the transfer and assignment of the
Receivables to HPLAC. Upon discovery by the Bank or HPLAC of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give written notice to the other party, the Company, the Owner Trustee and the
Indenture Trustee within three Business Days following such discovery. 
 Section 4.02. Representations and Warranties of the Bank
Relating to the Agreement and the Receivables. 
 (a) Representations and Warranties. The Bank hereby represents and warrants to
HPLAC as of the date of this Agreement, as of the Closing Date, as of each Addition Date, and on each Securitization Date, that: 
 (i) this Agreement constitutes a legal, valid and binding obligation of the Bank enforceable against the Bank in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally from time to time in effect or general principles of equity; 
 (ii) as of the date of transfer each Receivable has been and will be conveyed to HPLAC free and clear of any Lien; 
  

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 (iii) all authorizations, consents, orders or approvals of or registrations or
declarations with any Governmental Authority required to be obtained, effected or given by the Bank in connection with the conveyance of Securitized Receivables to HPLAC have been duly obtained, effected or given and are in full force and effect;

 (iv) this Agreement constitutes a valid sale, transfer and assignment to HPLAC of all right, title and interest of the Bank
in the Securitized Receivables and the proceeds thereof and the related Recoveries payable pursuant to this Agreement; and 
 (v) Each Purchased Asset related to a Securitized Receivable has been conveyed to HPLAC in compliance, in all material respects, with all Requirements of Law applicable to the Bank. 
 (b) Notice of Breach. The representations and warranties set forth in this Section 4.02 shall survive the transfer and assignment of the
Receivables to HPLAC. Upon discovery by either the Bank or HPLAC of a breach of any of the representations and warranties set forth in this Section 4.02, the party discovering such breach shall give written notice to the other party, and in the
case of a Securitized Receivable, to the Company, the Owner Trustee and the Indenture Trustee promptly following such discovery; provided that the failure to give notice promptly does not preclude subsequent notice. The Bank agrees to
cooperate with HPLAC in attempting to cure any such breach. 
 Section 4.03. Representations and Warranties of HPLAC. As of the
Closing Date, on each Addition Date and on each Business Day on or after the Transition Date, HPLAC hereby represents and warrants to, and agrees with, the Bank that: 
 (a) Organization and Good Standing. HPLAC is a corporation duly organized and validly existing under the laws of the State of Delaware and has, in all material respects, full power and authority to own its
properties and conduct its business as such properties are presently owned and such business is presently conducted and to execute, deliver and perform its obligations under this Agreement. 
 (b) Due Authorization. The execution and delivery of this Agreement and the consummation of the transactions provided for in this Agreement have
been duly authorized by HPLAC by all necessary corporate action on the part of HPLAC. 
 (c) No Conflict. The execution and delivery
of this Agreement and any other document or instrument delivered hereto by HPLAC, the performance of the transactions contemplated by this Agreement, and the fulfillment of the terms of this Agreement applicable to HPLAC, will not conflict with,
result in any breach of any of the material terms and provisions of, or constitute (with or without notice or lapse of time or both) a material default under, any indenture, contract, agreement, mortgage, deed of trust or other instrument to which
HPLAC is a party or by which it or any of its properties are bound. 
 (d) No Violation. The execution, delivery and performance of
this Agreement by HPLAC and the fulfillment of the terms contemplated herein and therein applicable to HPLAC will not conflict with or violate any Requirements of Law applicable to HPLAC. 
  

 11 

 (e) No Proceedings. There are no proceedings or investigations pending or, to the best knowledge
of HPLAC, threatened against HPLAC, before any Governmental Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, (iii) seeking
any determination or ruling that, in the reasonable judgment of HPLAC, would materially and adversely affect the performance by HPLAC of its obligations under this Agreement or (iv) seeking any determination or ruling that would materially and
adversely affect the validity or enforceability of this Agreement. 
 (f) All Consents. All authorizations, consents, orders or
approvals of or registrations or declarations with any Governmental Authority required to be obtained, effected or given by HPLAC in connection with the execution and delivery by HPLAC of this Agreement and any other document or instrument delivered
hereto and the performance of the transactions contemplated by this Agreement have been duly obtained, effected or given and are in full force and effect. 
 The representations and warranties set forth in this Section 4.03 shall survive the Conveyance of the Receivables to HPLAC. Upon discovery by HPLAC or the Bank of a breach of any of the foregoing representations
and warranties, the party discovering such breach shall give prompt written notice to the other party, the Owner Trustee and the Indenture Trustee. 
 ARTICLE V 
 COVENANTS 
 Section 5.01. Covenants of the Bank. The Bank hereby covenants and agrees with HPLAC as follows: 
 (a) Receivables
Not To Be Evidenced by Promissory Notes. Except in connection with its enforcement or collection of an Account, the Bank will take no action to cause any Receivable to be evidenced by any instrument (as defined in the UCC). 
 (b) Security Interests. Except for the conveyances hereunder, the Bank will not sell, pledge, assign or transfer to any other Person, or take any
other action inconsistent with HPLAC’s ownership of the Receivables or grant, create, incur, assume or suffer to exist any Lien (arising through or under the Bank) on, any Receivable, whether now existing or hereafter created, or any interest
therein, and the Bank shall not claim any ownership interest in the Receivables and shall defend the right, title and interest of HPLAC in, to and under the Receivables, whether now existing or hereafter created, against all claims of third parties
claiming through or under the Bank. 
 (c) Account Allocations. In the event that the Bank is unable for any reason to transfer
Receivables to HPLAC in accordance with the provisions of this Agreement (including, without limitation, by reason of the application of the provisions of Section 8.02 or any order of any Governmental Authority), then, in any such event, the
Bank agrees (except as prohibited by any such order) to allocate and pay to HPLAC, after the date of such inability, all Collections that HPLAC will be required to allocate and pay to the Company pursuant to Section 5.01 of the Receivables
Purchase Agreement between HPLAC and the Company. 
  

 12 

 (d) Delivery of Collections or Recoveries. In the event that the Bank receives Collections or
Recoveries, the Bank agrees to pay to HPLAC (or to the Servicer if HPLAC so directs) all such Collections and Recoveries as soon as practicable after receipt thereof. 
 (e) Notice of Liens. The Bank shall notify HPLAC promptly after becoming aware of any Lien on any Receivable other than the conveyances hereunder, under the Transfer and Servicing Agreement and under the
Indenture. 
 (f) Documentation of Transfer. The Bank shall undertake to file the documents which would be necessary to perfect and
maintain the transfer of the Purchased Assets to HPLAC. 
 (g) Periodic Rate Finance Charges. Except (A) as otherwise required by
any Requirements of Law or (B) as is deemed by the Bank to be necessary in order for it to maintain its credit business or a program operated by such credit business on a competitive basis based on a good faith assessment by it of the nature of
the competition with respect to the credit business or such program, it shall not at any time take any action which would have the effect of reducing the Series Portfolio Yield to a level that could be reasonably expected to result in an Adverse
Effect with respect to any Series based on the insufficiency of the Series Portfolio Yield or any similar test. 
 (h) Credit Agreements
and Guidelines. Subject to compliance with all Requirements of Law and paragraph (f) above, the Bank or the Servicer may change the terms and provisions of the applicable Credit Agreements or the applicable Credit Guidelines of the Bank or
the Servicer in any respect (including the calculation of the amount or the timing of charge-offs and the Periodic Rate Finance Charges to be assessed thereon). Notwithstanding the above, unless required by Requirements of Law or as permitted by
paragraph (f) above, the Bank or the Servicer will not take any action unless (i) at the time of such action, the Bank or the Servicer, reasonably believes that such action will not cause an Adverse Effect, and (ii) such change is
made applicable to the comparable segment of the revolving credit accounts owned by the Bank or serviced by the Servicer which have characteristics the same as, or substantially similar to, the Accounts that are the subject of such change, except as
otherwise restricted by an endorsement, sponsorship, or other agreement between the Bank and an unrelated third party or by the terms of the Credit Agreements. 
 (i) Approval and Official Records. The Bank shall cause this Agreement to be duly approved by the Bank’s Board of Directors, and the Bank shall maintain this Agreement as a part of the official records of
the Bank for the term of this Agreement. 
 (j) Trust Documents Control. The Bank acknowledges that some, but not all Receivables are
to be sold by HPLAC to the entities listed on Schedule III pursuant to the related Transaction Documents and are to be serviced by the applicable Servicer. The Bank agrees to cooperate fully with such Servicer and to permit such Servicer to take any
and all actions necessary in connection with such Receivables. 
  

 13 

 ARTICLE VI 
 REPURCHASE OBLIGATION 
 Section 6.01. Repurchase Obligation Termination. On the Transition Date,
all prior obligations of the Bank to accept reassignment of HPLAC’s interests in Receivables as a result of breaches of representations or warranties hereunder shall terminate, without regard to whether such breaches occur prior to or on or
after the Transition Date. 
 ARTICLE VII 
 CONDITIONS PRECEDENT 
 Section 7.01. Conditions to HPLAC’s Obligations. The obligations of HPLAC to purchase any
Purchased Assets on any Business Day shall be subject to the satisfaction of the following conditions: 
 (a) All representations and
warranties of the Bank contained in this Agreement shall be true and correct with the same effect as though such representations and warranties had been made on such date; 
 (b) All information concerning such Purchased Assets provided to HPLAC, or its designee, shall be true and correct as of such date in all material
respects; 
 (c) The Bank shall have substantially performed all other obligations required to be performed by the provisions of this
Agreement; 
 (d) The Bank shall have recorded and filed, at its expense, any financing statement with respect to the Receivables now
existing and hereafter created for the transfer of accounts and general intangibles (each as defined in Section 9-102 of the UCC) meeting the requirements of applicable state law in such manner and in such jurisdictions as would be necessary to
perfect the sale of and security interest in the Receivables from the Bank to HPLAC, and shall deliver a file-stamped copy of such financing statements or other evidence of such filings to HPLAC, or its designee; 
 (e) To the extent required of the Company by Section 2.09(e) of the Transfer and Servicing Agreement, the Bank shall have deposited in the
Collection Account all Collections with respect to such related Purchased Assets since the applicable cut off date; and 
 (f) All corporate
and legal proceedings and all instruments in connection with the transactions contemplated by this Agreement shall be satisfactory in form and substance to HPLAC, and HPLAC shall have received from the Bank copies of all documents (including,
without limitation, records of corporate proceedings) relevant to the transactions herein contemplated as HPLAC may reasonably have requested. 
 Section 7.02. Conditions Precedent to the Bank’s Obligations. The obligations of the Bank to sell Purchased Assets on any Business Day shall be subject to the satisfaction of the following conditions: 
 (a) All representations and warranties of HPLAC contained in this Agreement shall be true and correct with the same effect as though such representations
and warranties had been made on such date; 
  

 14 

 (b) Payment or provision for payment of the Purchase Price in accordance with the provision of
Section 3.01 hereof shall have been made; and 
 (c) All corporate and legal proceedings and all instruments in connection with the
transactions contemplated by this Agreement shall be satisfactory in form and substance to the Bank, and the Bank shall have received from HPLAC copies of all documents (including, without limitation, records of corporate proceedings) relevant to
the transactions herein contemplated as the Bank may reasonably have requested. 
 ARTICLE VIII 
 TERM AND PURCHASE TERMINATION 
 Section 8.01. Term. Notwithstanding the date of this Agreement, this Agreement, as amended and restated as set forth herein, shall be effective on the date hereof, and shall continue until mutually agreed otherwise by the
parties. 
 Section 8.02. Purchase Termination. 
 (a) Consistent with 12 U.S.C. § 1821(e)(12), HPLAC may not employ as grounds for termination of this Agreement that the liabilities of the Bank exceed its assets; that it has been determined to be insolvent; that
any grounds for the appointment of a receiver or conservator as set forth in 12 U.S.C. § 1821(c)(5) exist; or that the FDIC has been appointed receiver, conservator or liquidator of the Bank. 
 (b) In the event that the FDIC is appointed receiver, conservator or liquidator of the Bank and HPLAC has grounds to terminate this Agreement other than
those contemplated by 12 U.S.C. § 1821(e)(12), the FDIC may request that HPLAC not immediately terminate the Agreement, and, upon such request, HPLAC shall continue to fulfill its obligations as set forth in this Agreement for a period of
ninety (90) days or for such other period as may be mutually agreed by HPLAC and the FDIC (the “Continuation Period”). As compensation for any Receivables purchased from the Bank during the Continuation Period, HPLAC shall pay
an amount equal to the market rate for such Receivables, as mutually agreed by the FDIC and HPLAC. 
 (c) Nothing in the foregoing paragraphs
(a) and (b) shall be deemed to waive or otherwise impair the FDIC’s statutory rights under 12 U.S.C. § 1821(e)(1). 
 ARTICLE IX 
 MISCELLANEOUS PROVISIONS 
 Section 9.01. Amendment. This Agreement and the rights and obligations of the parties hereunder and thereunder may not be changed orally, but only by an instrument in writing signed by HPLAC and the Bank
in accordance with this Section 9.01. This Agreement may be 
  

 15 

 amended from time to time by HPLAC and the Bank (i) to cure any ambiguity, (ii) to correct or supplement any
provisions herein which may be inconsistent with any other provisions herein, (iii) to add any other provisions with respect to matters or questions arising under this Agreement which shall not be inconsistent with the provisions of this
Agreement, (iv) to change or modify the Purchase Price and (v) to change, modify, delete or add any other obligation of the Bank or HPLAC; provided, however that no amendment pursuant to clause (v) of this
Section 9.01 shall be effective with respect to Securitized Receivables unless the Bank and HPLAC have been notified in writing that the Rating Agency Condition has been satisfied; provided, further, the Bank and HPLAC shall have
delivered to the Company, the Owner Trustee and the Indenture Trustee an Officer’s Certificate, dated the date of any such action, stating that each of the Bank and HPLAC, respectively, reasonably believes that such action will not have an
Adverse Effect, unless the Company, the Owner Trustee and the Indenture Trustee shall consent thereto. A copy of any amendment to this Agreement with respect to Securitized Receivables shall be sent to the Rating Agency. 
 Section 9.02. Governing Law. THIS AGREEMENT 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 9.03. Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered at or mailed by registered mail, return receipt requested, to
(a) in the case of the Bank, 1111 Town Center Drive, Las Vegas, Nevada 89134, Attention: General Counsel, (b) in the case of HPLAC, 2700 Sanders Road, Prospect Heights, IL 60070, Attention: General Counsel, (c) in the case of the
Owner Trustee, Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-0001, (d) in the case of the Indenture Trustee, 111 East Wacker Drive, Chicago, Illinois, 60601, Attention: Corporate Trust Department, (e) in the case of
the Servicer, HSBC Finance Corporation, 2700 Sanders Road, Prospect Heights, Illinois 60070, Attention: S.H. Smith, Assistant Treasurer, (f) in the case of Fitch, Fitch, Inc., One State Street Plaza, New York, NY 10004, Attention: ABS
Surveillance, (g) in the case of Moody’s, Moody’s Investors Service Inc., 99 Church Street, New York, NY 10007, Attention: ABS Monitoring Group, or (h) in the case of Standard & Poor’s, Standard &
Poor’s Ratings Group, 55 Water Street, New York, NY 10041, Attention: Credit Card ABS; or, as to each party, at such other address as shall be designated by such party in a written notice to each other party. 
 Section 9.04. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for
any reason whatsoever be held invalid, then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants, agreements, provisions, and terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement. 
 Section 9.05. Assignment. Notwithstanding anything to the contrary
contained herein, other than HPLAC’s assignment of its rights, title, and interests in, to, and under this Agreement to the Company and the Company’s assignment of its rights, title and interest in, to and under this Agreement to the Trust
and the Trust’s assignment of its rights, title and interests 
  

 16 

 in, to and under this Agreement to the Indenture Trustee for the benefit of the beneficiaries of the Trust, including the
Noteholders as contemplated by the Transfer and Servicing Agreement, the Indenture and Section 9.06 hereof or in connection with another securitization transaction, this Agreement may not be assigned by the parties hereto unless: 
 (a) HPLAC shall assign its rights, title and interests in, to and under this Agreement to (i) any successor by merger which expressly assumes this
Agreement, (ii) any affiliate of HPLAC which assumes the obligations of this Agreement or (iii) any other entity provided that the Rating Agency has advised HPLAC and the Bank that the Rating Agency Condition has been satisfied with
respect to the Securitized Receivables; or 
 (b) the Bank shall assign its rights, title and interests in, to and under this Agreement to
(i) any successor by merger which expressly assumes this Agreement (ii) any affiliate of the Bank, which assumes the obligations of this Agreement or (iii) any other entity provided that the Rating Agency has advised HPLAC and
the Bank that the Rating Agency Condition has been satisfied with respect to the Securitized Receivables. 
 Section 9.06.
Acknowledgement and Agreement of the Bank. By execution below, the Bank expressly acknowledges and agrees that all of HPLAC’s right, title, and interest in, to, and under this Agreement as it relates to Securitized Receivables,
including, without limitation, all of HPLAC’s right, title, and interest in and to the Securitized Receivables purchased pursuant to this Agreement, shall be assigned by HPLAC to the Company, and shall be assigned by the Company to the Owner
Trustee, and shall be assigned by the Owner Trustee to the Indenture Trustee for the benefit of the beneficiaries of the Trust, including the Noteholders, and the Bank consents to such assignments. The Bank further agrees that notwithstanding any
claim, counterclaim, right of setoff or defense which it may have against HPLAC, due to a breach by HPLAC of this Agreement or for any other reason, and notwithstanding the bankruptcy of HPLAC or any other event whatsoever, the Bank’s sole
remedy shall be a claim against HPLAC for money damages, and then only to the extent of funds received by HPLAC pursuant to the Receivables Purchase Agreement between HPLAC and the Company, and in no event shall the Bank assert any claim on or any
interest in the Securitized Receivables or any proceeds thereof or take any action which would reduce or delay receipt by the Company or the Owner Trustee of collections with respect to the Securitized Receivables. Additionally, the Bank agrees for
the benefit of the Noteholders that any amounts payable by the Bank to HPLAC hereunder with respect to the Securitized Receivables which are to be paid by HPLAC to the Company then paid by the Company to the Owner Trustee and pledged to the
Indenture Trustee for the benefit of the Noteholders shall be paid by the Bank, on behalf of HPLAC, directly to the Company. 
 Section 9.07. Further Assurances. HPLAC and the Bank agree to do and perform, from time to time, any and all acts and to execute any and all further instruments required or reasonably requested by the other party, more fully to
effect the purposes of this Agreement, including, without limitation, the execution of any financing statements or continuation statements or equivalent documents relating to the Receivables for filing under the provisions of the UCC or other law of
any applicable jurisdiction. 
  

 17 

 Section 9.08. No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of HPLAC or the Bank, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or privilege. Subject to Section 9.06, the rights, remedies, powers and privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law. 
 Section 9.09. Counterparts. This Agreement 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 9.10. Binding; Third-Party Beneficiaries. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. The Company, the
Owner Trustee and the Indenture Trustee shall be considered third-party beneficiaries of this Agreement. 
 Section 9.11. Merger and
Integration. Except as specifically stated otherwise herein, this Agreement set forth the entire understanding of the parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement.
This Agreement may not be modified, amended, waived or supplemented except as provided herein. 
 Section 9.12. Headings. The
headings are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof. 
 Section 9.13. Schedules and Exhibits. The schedules and exhibits attached hereto and referred to herein shall constitute a part of this Agreement and are incorporated into this Agreement for all purposes. 
 Section 9.14. Nonpetition Covenant. Notwithstanding any prior termination of this Agreement, the Bank shall not, prior to the date which is
one year and one day after the termination of this Agreement, acquiesce, petition or otherwise invoke or cause HPLAC to invoke the process of any Governmental Authority for the purpose of commencing or sustaining a case against HPLAC under any
Federal or state bankruptcy, insolvency or similar law or appointing a receiver, conservator, liquidator, assignee, trustee, custodian, sequestrator or other similar official of HPLAC or any substantial part of its property or ordering the
winding-up or liquidation or the affairs of HPLAC. 
  

 18 

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

			
	 HSBC BANK NEVADA, NATIONAL
 ASSOCIATION

		
	By:	 	 /s/ Michael A. Reeves

	Name:	 	Michael A. Reeves
	Title:	 	Executive Vice President and Chief Financial Officer
	
	 HSBC PRIVATE LABEL ACQUISITION
 CORPORATION
(USA)

		
	By:	 	 /s/ Derek R. Rogers

	Name:	 	Derek R. Rogers
	Title:	 	Vice President and Controller

  

 19 

 Schedule I 
 LIST OF ACCOUNTS 
 COMPUTER FILES CONTAINING ACCOUNT INFORMATION DELIVERED TO 
 HPLAC ARE INCORPORATED BY REFERENCE 
  

 I-1 

 Schedule II 
 EXCLUDED ACCOUNT SCHEDULE 
 1. All QVC, Inc. private label merchant accounts. 
 2. All private label merchant accounts relating to the Saks private label program. 
 3. All accounts as to which related receivables have been sold to Household Card Services Inc. on or before July 1, 2002. 
  

 II-1 

 Schedule III 
 ENTITIES TO WHICH RECEIVABLES MAY BE SOLD 
  

	A.	HSBC Funding (USA) Inc. V 

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

	B.	HSBC Funding (USA) Inc. VII 

 Household Private Label
Credit Card Master Note Trust II 
  

 III-1Form of Letter Agreement (performance units awarded to executive officers)

 Exhibit 10.64 
                     , 2006 
 TO:                                     
                                    
 SUBJECT:    Grant of Performance Units 
 I am
pleased to inform you that the Compensation Committee of the Board of Directors of BJ Services Company (the “Company”) has granted you Performance Units under the Company’s 2000 Incentive Plan (“2000 Plan”) and also Tandem
Cash Tax Rights under Article VII, Section 2 of the 2000 Incentive Plan as follows: 
 Grant
Date:                                       
                                        
      
 Total Number of
Performance                                      
               
 Units Granted: 
 By signing below, you agree that the Performance Units and Tax Rights are governed by the terms and conditions of the Company’s 2000 Plan, including the Terms
and Conditions attached hereto, which are incorporated herein by reference. These grants shall be void and of no effect unless you execute and return this Agreement to the undersigned within ninety (90) days of the date of this letter. The
attached copy of this Agreement is for your records. 
  

			
	BJ SERVICES COMPANY
		
	 By:
	 	  

 EMPLOYEE: 
  

	
	  

	 [Name]

	
	 DATE:                                    
                                    

 BJ SERVICES COMPANY 
 2000 INCENTIVE PLAN 
 TERMS AND CONDITIONS – PERFORMANCE UNIT GRANT 
 WITH TANDEM CASH TAX RIGHTS 
 The
terms and conditions set forth below are hereby incorporated by reference into the attached Grant of Performance Units Agreement (“Agreement”) by and between BJ Services Company (“Company”) and the employee named therein (the
“Employee”). Terms defined in the 2000 Plan are used herein with the same meaning. 
  

	 	1.	The Employee has agreed to perform services for the Company or its subsidiary companies and to accept the grant of Performance Units and Tax Rights in accordance with the terms
and provisions of the 2000 Plan and the Agreement. 

  

	 	2.	Each Performance Unit represents the right to receive from the Company an unrestricted share of Common Stock with respect to each Performance Unit that becomes “earned”
as provided herein. 

  

	 	3.	Attached hereto and made a part of this Agreement for all purposes is Exhibit A, which sets forth the performance goals of the Company (“Performance Goals”) for the
three-year performance period of the Company ending September 30, 2009 (the “Performance Period”). 

  

	 	4.	Subject to the following provisions of this Agreement, the determination of whether Performance Units have been “earned” or forfeited, as the case may be, shall be made
as soon as practical after the end of the Performance Period as provided in Exhibit A. 

  

	 	5.	Except as provided in Section 8 below, in the event of the Employee’s termination of employment (whether voluntary or involuntary) with the Company and its subsidiaries
prior to the end of the Performance Period for any reason other than death, disability or retirement, all Performance Units are hereby automatically cancelled in full. 

  

	 	6.	In the event of the Employee’s termination of employment with the Company and its subsidiaries prior to the end of the Performance Period by reason of death, disability or
retirement, all unearned Performance Units shall be earned and become payable as set forth in Exhibit A hereto. 

  

	 	7.	In the event of a change in the capitalization of the Company due to a stock split, stock dividend, recapitalization, merger, consolidation, combination, or similar event, the
terms of the Agreement, including the number of Performance Units, shall be adjusted by the Board to reflect such change. 

  

	 	8.	Notwithstanding any other provisions of the Plan or this Agreement, if a Change of Control occurs during the Performance Period, then as of the date of such Change of Control
(1) all such Performance Goals shall be deemed to have been met in full and the Performance Period ended and (2) as soon as practicable upon such Change of Control, unrestricted shares of Common Stock equal to the number of Performance
Units shall be distributed to the Employee. 

  

	 	9.	To the extent that the payment by the Company of unrestricted shares of Common Stock to or on behalf of the Employee in satisfaction of “earned” Performance Units (the
“Stock Benefit”) constitutes taxable income to the Employee (or, in the event of the Employee’s death, the Employee’s beneficiary) for federal and, where applicable, state income tax purposes, the Company shall make a tandem
payment in cash to or on behalf of the Employee (the “Tax Bonus”) in an amount such that the “net” benefit received, after paying all applicable federal and state income taxes, as well as excise or other taxes (assuming, for this
purpose, the highest marginal income tax rates for individuals applied) on the Stock Benefit and this Tax Bonus, shall be equal to the Stock Benefit received before any such state or federal income, excise or other taxes thereon. The Tax Bonus shall
be paid at the time that withholding is required with respect to the payment of the earned Performance Units, to the extent payment is necessary to satisfy the withholding obligation thereon and on the portion of the Tax Bonus then paid, and the
remainder of the Tax Bonus shall be paid at such time or times as the Company determines to be appropriate, but not later than the April 15th following the calendar year in which Performance Units become taxable to the Employee. The Company shall have the right to withhold from the Tax Bonus all tax amounts the Company is obligated under any law to withhold with
respect to the payment of the unrestricted shares of Common Stock and the payment of the Tax Bonus. 

  

	 	10.	Nothing in the Agreement or in the 2000 Plan shall confer any right on the Employee to continue employment with the Company or its subsidiaries nor restrict the Company or its
subsidiaries from 

  

 termination of the employment relationship of the Employee at any time. 
  

	 	11.	Notwithstanding any other provision of the Agreement, the Employee agrees that the Company shall not be obligated to make any payments pursuant hereto, if counsel to the Company
determines such payment would violate any law or regulation of any governmental authority or agreement between the Company and any national securities exchange upon which the Common Stock is listed. 

  

	 	12.	In the event of a conflict between the terms of this Agreement and the 2000 Plan, the 2000 Plan shall be the controlling document. 

  

 Exhibit A 
 BJ SERVICES COMPANY 
 TERMS AND CONDITIONS – PERFORMANCE UNIT GRANT 
 PERFORMANCE GOALS 
  

	I.	Average Stock Price Goals 

 Performance Units shall be
earned by the Employee based on the comparison of (i) the percentage change in the Average Price (as defined below) of the Company’s common stock at the end of the Performance Period from the Average Price of the Company’s common
stock at the beginning of the Performance Period to (ii) the percentage change in the Average Price of the common stocks of the Peer Group at the end of the Performance Period from the Average Price of the common stocks of the Peer Group at the
beginning of the Performance Period in accordance with the following. 
  

							
	 	  	 Entry
	  	 EV
	  	 OA

	Performance	  	70% of Peer Group Average	  	Average of Peer Group	  	130% of Peer Group Average
				
	% Earned	  	33 1/3%	  	90%	  	125%

 For results between Entry, EV and OA, the percentage of Performance Units earned shall be
determined by linear interpolation between the two applicable standards. 
 In the event the Company’s performance shall be less than 70%
of the Peer Group average, the Employee shall earn 33-1/3% of the Performance Units so long as the Company earns a profit exclusive of asset write downs for each of the three years of the Performance Period subject to a reduction of the Performance
Units earned at the sole discretion of the Company’s Executive Compensation Committee. 
 The “Average Price” of the
Company’s common stock and of the common stocks of the Peer Group at the beginning of the Performance Period shall mean the average of the closing price of each such stock for the last five trading days in September, 2006 and the first five
trading days in October, 2006. The “Average Price” for the end of the Performance Period shall be similarly calculated for the last five trading days in September 2009 and the first five trading days in October, 2009. Dividends paid during
the Performance Period, if any, shall be added to the Average Price of the stock at the end of the Performance Period for purposes of determining the stock’s performance. 

	II.	Calculations 

 All determinations and calculations shall be
made by the Committee, whose determinations and calculations shall be final and binding on all persons. 
  

	III.	Peer Group 

 The Peer Group shall consist of the following
companies: 
 Company 
 Baker Hughes Incorporated 
 Halliburton Company 
 Schlumberger N.V. 
 Smith International 
 Weatherford 
 A company shall be removed from
the Peer Group for the Performance Period (and shall not be included in any determinations pursuant to Section I and II) if at any time during such period, (i) the common stock of such company ceases to be publicly traded on an established
securities market, (ii) such company is not the surviving entity in any merger, consolidation, or other reorganization (or survives only as a subsidiary of an entity other than a previously wholly owned subsidiary of such company),
(iii) such company sells, leases, or exchanges 85% or more of the gross fair market value (without regard to any liabilities) of its assets to any other person or entity (other than a previously wholly owned subsidiary of such company), or
(iv) such company is dissolved and liquidated. 
  

	IV.	In the event of death, disability or retirement, the employee (or his/her estate) shall continue to be eligible to earn Performance Units as if still employed by the Company.

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