Document:

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                                                                     EXHIBIT 4.3

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                WILMINGTON TRUST COMPANY AS OWNER TRUSTEE OF THE
            HOUSEHOLD PRIVATE LABEL CREDIT CARD MASTER NOTE TRUST I,
                                     Issuer

                                       and

                         U.S. BANK NATIONAL ASSOCIATION

           Indenture Trustee, Paying Agent and Securities Intermediary

                       SERIES 2002-2 INDENTURE SUPPLEMENT

                           Dated as of March 28, 2002

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                                TABLE OF CONTENTS

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                                                                                                                PAGE

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ARTICLE I CREATION OF THE SERIES 2002-2 NOTES.....................................................................1

   Section 1.01 Designation.......................................................................................1

ARTICLE II DEFINITIONS............................................................................................2

   Section 2.01 Definitions.......................................................................................2

ARTICLE III SERVICING FEE........................................................................................15

   Section 3.01 Servicing Compensation...........................................................................15

ARTICLE IV RIGHTS OF SERIES 2002-2 NOTEHOLDERS  AND ALLOCATION AND APPLICATION OF COLLECTIONS....................16

   Section 4.01 Collections and Allocations......................................................................16

   Section 4.02 Determination of Monthly Interest................................................................18

   Section 4.03 Determination of Monthly Principal...............................................................19

   Section 4.04 Application of Available Funds on Deposit in the Collection Account..............................19

   Section 4.05 Investor Charge-offs.............................................................................23

   Section 4.06 Subordinated Principal Collections...............................................................23

   Section 4.07 Excess Finance Charge and Administrative Collections.............................................23

   Section 4.08 Shared Principal Collections.....................................................................23

   Section 4.09 [Reserved].......................................................................................24

   Section 4.10 Principal Funding Account........................................................................24

   Section 4.11 Reserve Account..................................................................................25

   Section 4.12 Determination of LIBOR...........................................................................27

   Section 4.13 Investment Instructions..........................................................................28

   Section 4.14 Exchange of Notes for Transferor Amount..........................................................28

ARTICLE V DELIVERY OF SERIES 2002-2 NOTES; DISTRIBUTIONS; REPORTS TO SERIES 2002-2 NOTEHOLDERS...................29

   Section 5.01 Delivery and Payment for the Series 2002-2 Notes.................................................29

   Section 5.02 Distributions....................................................................................29

   Section 5.03 Reports and Statements to Series 2002-2 Noteholders..............................................30

ARTICLE VI SERIES 2002-2 AMORTIZATION EVENTS.....................................................................31

   Section 6.01 Series 2002-2 Amortization Events................................................................31

ARTICLE VII REDEMPTION OF SERIES 2002-2 NOTES;  SERIES FINAL MATURITY; FINAL DISTRIBUTIONS.......................32
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<S>                                                                                                              <C>
   Section 7.01 Optional Redemption of Series 2002-2 Notes.......................................................32

   Section 7.02 Series Final Maturity............................................................................33

ARTICLE VIII MISCELLANEOUS PROVISIONS............................................................................34

   Section 8.01 Ratification of Indenture........................................................................34

   Section 8.02 Counterparts.....................................................................................34

   Section 8.03 Governing Law....................................................................................34

   Section 8.04 Transfer of the O/C Amount.......................................................................34

   Section 8.05 Limitation of Liability..........................................................................34

   Section 8.06 Perfection of Security Interest..................................................................35

   Section 8.07 Transfer Restrictions............................................................................35

   Section 8.08 Notice of Servicing Delegation...................................................................35

   Section 8.09 Zero Balance Account Removal.....................................................................36

   Section 8.10 Notice of Insolvency Events......................................................................36

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EXHIBITS

EXHIBIT A-1              FORM OF CLASS A NOTE

EXHIBIT A-2              FORM OF CLASS B NOTE

EXHIBIT A-3              FORM OF CLASS C NOTE

EXHIBIT B                FORM OF MONTHLY PAYMENT INSTRUCTIONS AND NOTIFICATION
                         TO THE INDENTURE TRUSTEE

EXHIBIT C                FORM OF MONTHLY STATEMENT

EXHIBIT D                FORM OF MONTHLY SERVICER'S CERTIFICATE

                                       ii

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         SERIES 2002-2 INDENTURE SUPPLEMENT, dated as of March 28, 2002 (the
"INDENTURE SUPPLEMENT"), among WILMINGTON TRUST COMPANY, not in its individual
capacity, but solely as Owner Trustee of the HOUSEHOLD PRIVATE LABEL CREDIT CARD
MASTER NOTE TRUST 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, not in its individual capacity, but solely as the Indenture Trustee
(herein, together with its successors in the trusts created under the Master
Indenture referred to below, the "INDENTURE TRUSTEE"), Paying Agent and the
Securities Intermediary under the Master Indenture, dated as of June 12, 2001
(the "INDENTURE") between the Issuer, and the Indenture Trustee (the Indenture,
together with this Indenture Supplement, the "AGREEMENT").

         The Transferor may direct the Owner Trustee, on behalf of the Issuer,
to issue one or more Series of Notes in accordance with Section 2.12 of the
Indenture. The Transferor has tendered the notice of issuance required by
subsection 2.12(b)(i) of the Indenture and hereby directs the Owner Trustee, on
behalf of the Issuer, to enter into this Indenture Supplement with the Indenture
Trustee as required by Section 2.12 to provide for the issuance, authentication
and delivery of the Class A Notes, Series 2002-2, the issuance, authentication
and delivery of the Class B Notes, Series 2002-2 and the issuance,
authentication and delivery of the Class C Notes, Series 2002-2 and to specify
the Principal Terms thereof. The Principal Terms of this Series are set forth in
this Indenture Supplement to the Indenture.

                                   ARTICLE I

                       CREATION OF THE SERIES 2002-2 NOTES

    Section 1.01     Designation

         (a) There is hereby created a Series of Notes to be issued pursuant to
the Indenture and this Indenture Supplement to be known as "HOUSEHOLD PRIVATE
LABEL CREDIT CARD MASTER NOTE TRUST I, SERIES 2002-2" or the "SERIES 2002-2
NOTES." The Series 2002-2 Notes shall be issued in three Classes, the first of
which shall be known as the "CLASS A SERIES 2002-2 FLOATING RATE ASSET BACKED
NOTES", the second of which shall be known as the "CLASS B SERIES 2002-2
FLOATING RATE ASSET BACKED NOTES" and the third of which will shall be known as
the "CLASS C SERIES 2002-2 FLOATING RATE ASSET BACKED NOTES". The Series 2002-2
Notes shall be due and payable on the Series 2002-2 Final Maturity Date.

         (b) Series 2002-2 shall be a Pool One Series and shall be in Principal
Sharing Group One and Excess Finance Charge Sharing Group One, and shall not be
in a Reallocation Group, Shared Enhancement Group or be allocated Shared
Transferor Principal Collections. Series 2002-2 shall not be subordinated to any
other Series. Notwithstanding any provision in the Indenture or in this
Indenture Supplement to the contrary, the first Distribution Date with respect
to Series 2002-2 shall be the April 15, 2002 Distribution Date, and the first
Due Period shall begin on and include March 1, 2002 and end on and include March
31, 2002.

         (c) In the event that any term or provision contained herein shall
conflict with or be inconsistent with any term or provision contained in the
Indenture, the terms and provisions of this Indenture Supplement shall be
controlling. All capitalized terms not otherwise defined

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herein are defined in the Indenture, the Transfer and Servicing Agreement or the
Trust Agreement. Each capitalized term defined herein shall relate only to the
Series 2002-2 Notes but not any other Series of Notes issued by the Issuer.

                                   ARTICLE II

                                   DEFINITIONS

    Section 2.01     Definitions

         (a) Whenever used in this Indenture Supplement, the following words and
phrases shall have the following meanings, and the definitions of such terms are
applicable to the singular as well as the plural forms of such terms and the
masculine as well as the feminine and neuter genders of such terms.

         "Accumulation Period Factor" shall mean, with respect to any Due
Period, a fraction, (a) the numerator of which is equal to the sum of (i) the
initial invested amounts of all Outstanding Series in Principal Sharing Group
One which are not Variable Funding Series, (ii) the Invested Amount of all
Outstanding Variable Funding Series in Principal Sharing Group One which are in
the Revolving Period and (iii) the Invested Amount as of the end of the
Revolving Period for all Outstanding Variable Funding Series in Principal
Sharing Group One which are not in the Revolving Period and (b) the denominator
of which is equal to the sum of (i) the Initial Invested Amount, (ii) the
initial invested amounts of all Outstanding Principal Sharing Group One Series
(other than Series 2002-2) that have controlled accumulation periods or
controlled amortization periods (the length of which may be altered in
accordance with the terms of the related Indenture Supplements) and are not
expected to be in their respective revolving periods as of such Due Period and
(iii) the Invested Amount as of the end of the Revolving Period for all
Outstanding Variable Funding Series in Principal Sharing Group One which are not
expected to be in their revolving periods as of such Due Period; provided,
however, that this definition may be changed at any time if an Officer's
Certificate is delivered indicating that such action will not result in an
Adverse Effect.

         "Accumulation Period Length" shall have the meaning assigned such term
in subsection 4.04(e).

         "Additional Interest" shall mean, with respect to any Distribution
Date, the Class A Additional Interest, the Class B Additional Interest and the
Class C Additional Interest for such Distribution Date.

         "Adjusted Invested Amount" shall mean, with respect to any date of
determination, an amount equal to the Invested Amount minus the Principal
Funding Account Balance on such date.

         "Adjusted Pool One Principal Balance" shall mean an amount equal to the
greater of (a) the sum of (i) the total amount of Principal Receivables in Pool
One as of the close of business on the last day of the immediately preceding Due
Period (or with respect to the first

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Due Period, the total amount of Principal Receivables in Pool One as of the
Series 2002-2 Cut-off Date) and (ii) the principal amount on deposit in the
Special Funding Account with respect to Pool One as of the close of business on
such last day (or with respect to the first Due Period, the Series 2002-2
Cut-off Date) and (b) the sum of the numerators used to calculate the investor
percentages for allocations with respect to Principal Receivables, Finance
Charge and Administrative Receivables or Defaulted Amounts, as applicable, for
all Pool One Series outstanding as of the date as to which such determination is
being made; provided, however, that with respect to any Due Period in which an
Addition Date for an Aggregate Addition or a Removal Date occurs, the amount in
clause (a)(i) above shall be the sum of the amounts for each day in such Due
Period computed as follows and divided by the number of days in such Due Period:
(1) the aggregate amount of Principal Receivables in Pool One as of the close of
business on the last day of the prior Due Period, for each day in the period
from and including the first day of such Due Period to but excluding the related
Additional Cut-Off Date or Removal Date and (2) the aggregate amount of
Principal Receivables in Pool One as of the close of business on the related
Additional Cut-off Date or Removal Date after adjusting for the aggregate amount
of Principal Receivables added to or removed from Pool One on the related
Additional Cut-off Date or Removal Date, as the case may be, for each day in the
period from and including the related Additional Cut-off Date or Removal Date to
and including the last day of such Due Period.

         "Administration Fee" shall mean the fee payable to the Administrator
pursuant to the Administration Agreement, to the extent not paid by the
Transferor.

         "Available Investor Finance Charge and Administrative Collections"
shall mean, with respect to any Due Period, an amount equal to the sum of (a)
the Investor Finance Charge and Administrative Collections, (b) Principal
Funding Investment Proceeds, if any, with respect to the related Distribution
Date, and (c) amounts, if any, to be withdrawn from the Reserve Account which
will be deposited into the Collection Account on the related Distribution Date
to be treated as Available Investor Finance Charge and Administrative
Collections pursuant to subsections 4.11(b) and (d).

         "Available Investor Principal Collections" shall mean, with respect to
any Due Period, an amount equal to the sum of (a) (i) an amount equal to the
Investor Percentage of all Collections of Principal Receivables received during
such Due Period minus (ii) the amount of Subordinated Principal Collections with
respect to such Due Period, (b) any Shared Principal Collections with respect to
other Principal Sharing Group One Series (including any amounts on deposit in
the Special Funding Account with respect to Pool One that are allocated to
Series 2002-2 pursuant to the Agreement for application as Shared Principal
Collections), (c) any Refunding Proceeds and (d) any other amounts which
pursuant to Section 4.04 hereof are to be treated as Available Investor
Principal Collections with respect to the related Distribution Date.

         "Available Reserve Account Amount" shall mean, with respect to any
Distribution Date, the lesser of (a) the amount on deposit in the Reserve
Account on such date (after taking into account any interest and earnings
retained in the Reserve Account pursuant to subsection 4.11(b) on such date, but
before giving effect to any (i) deposit made or to be made pursuant to
subsection 4.04(a)(x) to the Reserve Account on such date, or (ii) any
withdrawal made or to be made pursuant to subsection 4.11(d), (e) and (f) from
the Reserve Account with respect to such date) and (b) the Required Reserve
Account Amount.

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         "Base Rate" shall mean, with respect to any Due Period, the sum of (a)
the product of the weighted average of the Class A Note Interest Rate, the Class
B Note Interest Rate and the Class C Note Interest Rate for the Interest Period
commencing in such Due Period (weighted based on the Class A Note Principal
Balance, the Class B Note Principal Balance and the Class C Note Principal
Balance as of the last day of the prior Due Period) multiplied by a fraction,
the numerator of which is the Note Principal Balance and the denominator of
which is the sum of the Note Principal Balance and the O/C Amount as of the last
day of the prior Due Period and (b) a fraction, the numerator of which is the
product of (i) twelve and (ii) the Monthly Servicing Fee and the denominator of
which is the sum of the Note Principal Balance and the O/C Amount as of the last
day of the prior Due Period.

         "Class A Additional Interest" shall have the meaning specified in
subsection 4.02(a).

         "Class A Interest Shortfall" shall have the meaning specified in
subsection 4.02(a).

         "Class A Monthly Interest" shall have the meaning specified in
subsection 4.02(a).

         "Class A Note Initial Principal Balance" shall mean $400,000,000.

         "Class A Note Interest Rate" shall mean a per annum rate of 0.17% in
excess of LIBOR as determined (i) on March 26, 2002, for the period from and
including the Closing Date through and excluding April 15, 2002, and (ii) on the
related LIBOR Determination Date with respect to each Interest Period
thereafter.

         "Class A Note Principal Balance" shall mean, with respect to any date,
an amount equal to (a) the Class A Note Initial Principal Balance minus (b) the
aggregate amount of any principal payments made to the Class A Noteholders prior
to such date.

         "Class A Noteholder" shall mean the Person in whose name a Class A Note
is registered in the Note Register.

         "Class A Notes" shall mean any one of the Notes executed by the Issuer
and authenticated by or on behalf of the Indenture Trustee, substantially in the
form of Exhibit A-1.

         "Class B  Additional  Interest"  shall have the  meaning  specified  in
subsection 4.02(b).

         "Class B  Interest  Shortfall"  shall  have the  meaning  specified  in
subsection 4.02(b).

         "Class  B  Monthly  Interest"  shall  have  the  meaning  specified  in
subsection 4.02(b).

         "Class B Note Initial Principal Balance" shall mean $58,275,000.

         "Class B Note Interest Rate" shall mean a per annum rate of 0.55% in
excess of LIBOR as determined (i) on March 26, 2002, for the period from and
including the Closing Date

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through and excluding April 15, 2002, and (ii) on the related LIBOR
Determination Date with respect to each Interest Period thereafter.

         "Class B Note Principal Balance" shall mean, with respect to any date,
the Class B Note Initial Principal Balance, minus the aggregate amount of any
principal payments made to the Class B Noteholders prior to such date.

         "Class B Noteholder" shall mean the Person in whose name a Class B Note
is registered in the Note Register.

         "Class B Notes" shall mean any one of the Notes executed by the Issuer
and authenticated by or on behalf of the Indenture Trustee, substantially in the
form of EXHIBIT A-2.

         "Class C  Additional  Interest"  shall have the  meaning  specified  in
subsection 4.02(c).

         "Class C  Interest  Shortfall"  shall  have the  meaning  specified  in
subsection 4.02(c).

         "Class  C  Monthly  Interest"  shall  have  the  meaning  specified  in
subsection 4.02(c).

         "Class C Note Initial Principal Balance" shall mean $41,050,000.

         "Class C Note Interest Rate" shall mean a per annum rate of 1.20% in
excess of LIBOR as determined (i) on March 26, 2002, for the period from and
including the Closing Date through and excluding April 15, 2002 and (ii) on the
related LIBOR Determination Date with respect to each Interest Period
thereafter.

         "Class C Note Principal Balance" shall mean, with respect to any date,
an amount equal to (a) the Class C Note Initial Principal Balance minus (b) the
aggregate amount of any principal payments made to the Class C Noteholders prior
to such date.

         "Class C Noteholder" shall mean the Person in whose name a Class C Note
is registered in the Note Register.

         "Class C Notes" shall mean any one of the Notes executed by the Issuer
and authenticated by or on behalf of the Indenture Trustee, substantially in the
form of Exhibit A-3.

         "Closing Date" shall mean March 28, 2002.

         "Controlled Accumulation Amount" shall mean for any Distribution Date
with respect to the Controlled Accumulation Period, $41,610,417; provided,
however, that if the Accumulation Period Length is determined to be less than 12
Due Periods pursuant to subsection 4.04(e), the Controlled Accumulation Amount
for each Distribution Date with respect to the Controlled Accumulation Period
will be equal to (a) the product of (i) the sum of the Class A Note Initial
Principal Balance, the Class B Note Initial Principal Balance and the Class C
Note

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Initial Principal Balance and (ii) the Accumulation Period Factor for the Due
Period related to each Distribution Date divided by (b) the Required
Accumulation Factor Number.

         "Controlled Accumulation Period" shall mean, unless an Amortization
Event shall have occurred prior thereto, the period commencing at the close of
business on February 28, 2006 or such later date as is determined in accordance
with subsection 4.04(e) and ending on the first to occur of (a) the commencement
of the Early Amortization Period, (b) the payment in full of the Note Principal
Balance and (c) the Expected Principal Payment Date. "Controlled Deposit Amount"
shall mean, with respect to any Distribution Date with respect to the Controlled
Accumulation Period, an amount equal to the sum of (a) the Controlled
Accumulation Amount for such Distribution Date and (b) any Deficit Controlled
Accumulation Amount for the prior Distribution Date.

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

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

         "Distribution Date" shall mean April 15, 2002 and the fifteenth day of
each calendar month thereafter, or if such fifteenth day is not a Business Day,
the next succeeding Business Day.

         "Early Amortization Period" shall mean the period commencing on the
first day of the Due Period on which an Amortization Event with respect to
Series 2002-2 is deemed to

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have occurred or, if the Servicer is required to make daily deposits into the
Collection Account, on the day such Amortization Event is deemed to have
occurred, and ending upon the earlier to occur of (a) the payment in full of the
Note Principal Balance to the Series 2002-2 Noteholders and (b) the Series
2002-2 Final Maturity Date.

         "Eligible Investments" shall mean, with respect to funds allocable to
Series 2002-2 in the Collection Account, the Principal Funding Account and the
Reserve Account, "Eligible Investments" as defined in the Indenture, except that
(a) all references in such definition to "rating satisfactory to the Rating
Agency" shall mean ratings of not less than "A-1+", "P-1" and "F1+" (whichever
is applicable), unless otherwise specified by the Rating Agency, and (b) all
such investments shall have maturities at the time of the acquisition thereof
occurring no later than the Distribution Date following such date of
acquisition.

         "Excess Finance Charge and Administrative Collections" shall have the
meaning specified in Section 8.08C of the Master Indenture.

         "Excess Finance Charge Sharing Group One" shall mean Series 2002-2 and
each other Series specified in the related Indenture Supplement to be included
in Excess Finance Charge Sharing Group One.

         "Excess O/C Amount" shall mean, with respect to any Distribution Date,
the excess of the O/C Amount (before giving effect to distributions on such
Distribution Date) over the Required O/C Amount as of such Distribution Date.

         "Excess Spread" shall mean with respect to any Due Period, the
annualized percentage equivalent of a fraction, (a) the numerator of which is
equal to (i) Available Investor Finance Charge and Administrative Collections
with respect to such Due Period, plus (ii) any Excess Finance Charge and
Administrative Collections that are allocated to Series 2002-2 with respect to
such Due Period, minus (iii) the amounts distributable pursuant to subsection
4.04(a)(i) through (ix) with respect to the related Distribution Date, and (b)
the denominator of which is the sum of the Note Principal Balance and the O/C
Amount as of the last day of the immediately preceding Due Period.

         "Expected Principal Payment Date" shall mean the March 2007
Distribution Date.

         "Finance Charge Shortfall" shall have the meaning specified in Section
4.07.

         "Fixed Investor Percentage" shall mean, with respect to any Due Period,
the percentage equivalent (which percentage shall never exceed 100%) of a
fraction, (a) the numerator of which is the Adjusted Invested Amount as of the
close of business on the last day of the Revolving Period and (b) the
denominator of which is the Adjusted Pool One Principal Balance.

         "Floating Investor Percentage" shall mean, with respect to any Due
Period, the percentage equivalent (which percentage shall never exceed 100%) of
a fraction, (a) the numerator of which is the Adjusted Invested Amount as of the
close of business on the last day of the preceding Due Period (or with respect
to the first Due Period, the Initial Invested Amount) and (b) the denominator of
which is the Adjusted Pool One Principal Balance.

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         "Initial O/C Amount" shall mean $30,475,000.

         "Initial Invested Amount" shall mean $529,800,000.

         "Initial Principal Amount" shall mean $499,325,000.

         "Interest Period" shall mean, with respect to any Distribution Date,
the period from and including the Distribution Date immediately preceding such
Distribution Date (or, in the case of the first Distribution Date, from the
Closing Date) to but excluding such Distribution Date.

         "Interim Note Principal Amount" shall mean as of any Distribution Date
(before giving effect to distributions on such Distribution Date) (a) the Class
A Note Principal Balance plus (b) the Class B Note Principal Balance plus (c)
the Class C Note Principal Balance minus (d) the Principal Funding Account
Balance, if any, as of such Distribution Date, minus (e) the Controlled Deposit
Amount for such Distribution Date.

         "Invested Amount" shall mean, as of any date of determination, an
amount equal to the Initial Principal Amount and the Initial O/C Amount minus
(a) the amount of principal previously paid to the Series 2002-2 Noteholders
with respect to the Class A Notes, the Class B Notes and the Class C Notes
(including the principal amount of any Notes purchased by the Transferor) and
any reduction in the O/C Amount pursuant to Section 4.04(b) or (c), and (b) the
amount of unreimbursed Investor Charge-offs and unreimbursed Subordinated
Principal Collections.

         "Investor Charge-off" shall have the meaning specified in Section 4.05.

         "Investor Defaulted Amount" shall mean, with respect to any
Distribution Date, an amount equal to the product of (a) the Defaulted Amount
for the related Due Period and (b) the Investor Percentage for such Due Period.

         "Investor Finance Charge and Administrative Collections" shall mean,
with respect to any Distribution Date, an amount equal to the product of (a)
Investor Percentage for the related Due Period and (b) Collections of Finance
Charge and Administrative Receivables deposited in the Collection Account for
the related Due Period.

         "Investor Percentage" shall mean, for any Due Period, (a) with respect
to (i) Finance Charge and Administrative Receivables during any period other
than the Early Amortization Period, (ii) Principal Receivables during the
Revolving Period and (iii) Defaulted Amounts at any time, the Floating Investor
Percentage and (b) with respect to (i) Principal Receivables during any period
other than the Revolving Period and (ii) Finance Charge and Administrative
Receivables during the Early Amortization Period, the Fixed Investor Percentage.

         "LIBOR" shall mean, for any LIBOR Determination Date, the London
interbank offered rate for one-month United States dollar deposits determined by
the Indenture Trustee for each Interest Period in accordance with the provisions
of Section 4.12.

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         "LIBOR Determination Date" shall mean for any Interest Period, two
London Business Days before that Interest Period commences; provided that the
LIBOR Determination Date for the first Interest Period will be two London
Business Days before the Closing Date.

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

         "Monthly Administration Fee" shall mean the product of (i) one-twelfth
of the Administration Fee and (ii) the Floating Investor Percentage.

         "Monthly Interest" shall mean, with respect to any Distribution Date,
the sum of the Class A Monthly Interest, the Class B Monthly Interest and the
Class C Monthly Interest for such Distribution Date.

         "Monthly Principal" shall mean the monthly principal distributable in
respect of the Notes and the O/C Amount as calculated in accordance with Section
4.03.

         "Monthly Servicing Fee" shall mean, for any Distribution Date, an
amount equal to one-twelfth of the product of:

         (a) the Servicing Fee Rate;

         (b) the Floating Investor Percentage for the related Due Period; and

         (c) the total amount of Principal Receivables as of the close of
business on the last day of the immediately preceding Due Period, or with
respect to the first Due Period, the total amount of Principal Receivables as of
the Closing Date, in either case, excluding the principal portion of
Participation Interests;

provided, however, that with respect to any Due Period in which an Addition Date
for an Aggregate Addition or a Removal Date occurs, the amount in clause (c)
above shall be the sum of the amounts for each day in that Due Period computed
as follows and divided by the number of days in that Due Period:

         (i)  the aggregate amount of Principal Receivables, excluding the
              principal portion of participation interests, as of the close of
              business on the last day of the prior Due Period, for each day in
              the period from and including the first day of that Due Period to
              but excluding the related Additional Cut-off Date or Removal Date;
              and

         (ii) the aggregate amount of Principal Receivables, excluding the
              principal portion of participation interests, as of the close of
              business on the related Additional Cut-off Date or Removal Date
              after adjusting for the aggregate amount of Principal Receivables,
              excluding the principal portion of Participation Interests, added
              to or removed on the related Additional Cut-off Date or Removal
              Date, as the case may be, for each day in the period from and
              including the related Additional Cut-off Date or Removal Date to
              and including the last day of that Due Period;

                                       9
<PAGE>

provided further, that with respect to the first Distribution Date, the Monthly
Servicing Fee will equal $883,000.

         "Monthly Subordination Amount" shall mean with respect to any Due
Period an amount equal to the sum of:

         (a) the lower of (i) the excess of the amounts distributable pursuant
to subsection 4.04(a)(i) over the Available Investor Finance Charge and
Administrative Collections and Excess Finance Charge and Administrative
Collections allocated with respect thereto pursuant to subsection 4.04(a)(i),
and (ii) (1) the product of (I) 24.50% and (II) the Initial Invested Amount
minus (2) any principal payments to the O/C Holder and (3) the amount of
unreimbursed Investor Charge-offs (after giving effect to Investor Charge-offs
for the related Due Period) and unreimbursed Subordinated Principal Collections
(as of the previous Distribution Date);

         (b) the lower of (i) the excess of the amounts distributable pursuant
to subsections 4.04(a)(ii), over the Available Investor Finance Charge and
Administrative Collections and Excess Finance Charge and Administrative
Collections allocated with respect thereto pursuant to subsections 4.04(a)(ii),
and (ii)(1) the product of (I) 13.50% and (II) the Initial Invested Amount minus
(2) any principal payments to the O/C Holder and (3) the amount of unreimbursed
Investor Charge-offs (after giving effect to Investor Charge-offs for the
related Due Period) and unreimbursed Subordinated Principal Collections,
(including amounts allocated pursuant to clause (a) above with respect to the
related Distribution Date); and

         (c) the lower of (i) the excess of the amounts distributable pursuant
to subsections 4.04(a)(iii) and 4.04(a)(iv), over the Available Investor Finance
Charge and Administrative Collections and Excess Finance Charge and
Administrative Collections allocated with respect thereto pursuant to
subsections 4.04(a)(iii) and (iv), and (ii)(1) the product of (I) 5.75% and (II)
the Initial Invested Amount minus (2) any principal payments to the O/C Holder
and (3) the amount of unreimbursed Investor Charge-offs (after giving effect to
Investor Charge-offs for the related Due Period) and unreimbursed Subordinated
Principal Collections, (including amounts allocated pursuant to clauses (a) and
(b) above with respect to the related Distribution Date).

         "Note Principal Balance" shall mean, at any time of determination, the
sum of the Class A Note Principal Balance, the Class B Note Principal Balance
and the Class C Note Principal Balance.

         "O/C Amount" shall mean, with respect to any date, an amount equal to
(a) the Invested Amount minus (b) the Note Principal Balance.

         "O/C Holder" shall mean HRSI Funding, Inc. II, a Delaware corporation,
as holder of the Transferor Certificate.

         "Plan" shall mean employee benefit plans and certain other retirement
plans and arrangements (including, without limitation, individual retirement
accounts and annuities), as well as collective investment funds and certain
separate and general accounts in which such plans or arrangements are invested.

                                       10
<PAGE>

         "Pool One" shall mean the pool of Receivables related to the Accounts
designated as "Pool One Accounts" by the Issuer to the Indenture Trustee.
Initially, the Issuer has designated all Accounts as "Pool One Accounts".

         "Pool One Series" shall mean Series 2002-2 and each other Series which
is designated as a Pool One Series in the related Indenture Supplement.

         "Principal Funding Account" shall have the meaning set forth in
subsection 4.10(a).

         "Principal Funding Account Balance" shall mean, with respect to any
date of determination, the principal amount, if any, on deposit in the Principal
Funding Account on such date of determination.

         "Principal Funding Investment Proceeds" shall mean, with respect to
each Distribution Date, the investment earnings on funds in the Principal
Funding Account (net of investment expenses and losses) for the period from and
including the immediately preceding Distribution Date to but excluding such
Distribution Date.

         "Principal Sharing Group One" shall mean Series 2002-2 and each other
Series specified in the related Indenture Supplement to be included in Principal
Sharing Group One.

         "Rating Agency" shall mean each of Standard & Poor's, Moody's and
Fitch.

         "Reassignment Amount" shall mean, with respect to any Distribution
Date, after giving effect to any deposits and distributions otherwise to be made
on such Distribution Date, the sum of (a) the Note Principal Balance and the O/C
Amount on such Distribution Date, plus (b) Monthly Interest for such
Distribution Date and any Monthly Interest previously due but not distributed to
the Series 2002-2 Noteholders, plus (c) the amount of Additional Interest, if
any, for such Distribution Date and any Additional Interest previously due but
not distributed to the Series 2002-2 Noteholders on a prior Distribution Date.

         "Reference Banks" shall mean four major banks in the London interbank
market selected by the Servicer.

         "Refunding Proceeds" shall mean with respect to any Distribution Date,
any proceeds of the issuance of a new Series of Notes remitted by the
Transferor, with the prior written consent of the Indenture Trustee at least one
Business Day prior to such Distribution Date for deposit into the Collection
Account and application as Available Investor Principal Collections.

         "Required Accumulation Factor Number" shall be equal to a fraction,
rounded upwards to the nearest whole number, the numerator of which is one and
the denominator of which is equal to the lowest monthly principal payment rate
(calculated based upon Collections of Principal Receivables for any Due Period,
over the amount of Principal Receivables on the first day of such Due Period) on
the Accounts for the 12 months preceding the date of such calculation; provided,
however, that this definition may be changed at any time if the Rating Agency
Condition is satisfied.

                                       11
<PAGE>

         "Required O/C Amount" shall mean, as of the Closing Date, the Initial
O/C Amount and, as of any Distribution Date thereafter, an amount equal to 6.10%
of the Interim Note Principal Amount for such Distribution Date but not less
than 3.00% of the Initial Invested Amount; provided that (a) if an Amortization
Event has occurred, the Required O/C Amount for any Distribution Date shall
equal the amount of such requirement immediately preceding such Amortization
Event, (b) in no event shall the Required O/C Amount exceed the sum of the Class
A Note Principal Balance, the Class B Note Principal Balance and the Class C
Note Principal Balance on any such date, (c) the Required O/C Amount may be
reduced at any time to a lesser amount if (i) the Rating Agency Condition is
satisfied and (ii) an Officer's Certificate of the Transferor has been delivered
to the effect that in the reasonable belief of the Transferor, such reduction
will not result in an Adverse Effect and (d) the Transferor, in its sole
discretion may increase the Required O/C Amount at any time.

         "Required Reserve Account Amount" shall mean, with respect to any
Distribution Date on or after the Reserve Account Funding Date, an amount equal
to (a) 0.50% of the Note Principal Balance or (b) any other amount designated by
the Transferor; provided, however, that if such designation is of a lesser
amount, the Transferor shall (i) provide the Servicer and the Indenture Trustee
with evidence that the Rating Agency Condition shall have been satisfied and
(ii) deliver to the Indenture Trustee an Officer's Certificate indicating that
such designation will not result in an Adverse Effect.

         "Required Transferor Amount" shall have the meaning specified in the
Indenture.

         "Required Transferor Percentage" shall mean with respect to Pool One,
(a) initially 7% or (b) any other percentage designated by the Transferor;
provided, however, that if such designation is of a lesser amount, the
Transferor shall (i) provide the Servicer and the Indenture Trustee with
evidence that the Rating Agency Condition shall have been satisfied and (ii)
deliver to the Indenture Trustee a certificate of an authorized officer to the
effect that, based on the facts known to such officer at such time, in the
reasonable belief of the Transferor, such designation will not have an Adverse
Effect.

         "Reserve Account" shall have the meaning specified in subsection
4.11(a).

         "Reserve Account Funding Date" shall mean (a) the third Distribution
Date prior to the scheduled commencement of the Controlled Accumulation Period
if the average Excess Spread for any three consecutive months is 4% or greater,
(b) the fourth Distribution Date prior to the scheduled commencement of the
Controlled Accumulation Period if the average Excess Spread for any three
consecutive months is 3% or greater, but less than 4% (c) the sixth Distribution
Date prior to the scheduled commencement of the Controlled Accumulation Period
if the average Excess Spread for any three consecutive months is 3% or greater,
but less than 2% and (d) the twelfth Distribution Date prior to the scheduled
commencement of the Controlled Accumulation Period if the average Excess Spread
for any three consecutive months is less than 2%. For purposes of this
definition, Excess Spread shall be determined for each month beginning 13 months
prior to the scheduled commencement of the Controlled Accumulation Period.

                                       12
<PAGE>

         "Reserve Account Surplus" shall mean, as of any Distribution Date
following the Reserve Account Funding Date, the amount, if any, by which the
amount on deposit in the Reserve Account exceeds the Required Reserve Account
Amount.

         "Reserve Draw Amount" shall mean, with respect to each Distribution
Date relating to the Controlled Accumulation Period or the first Distribution
Date relating to the Early Amortization Period, the amount, if any, by which the
Principal Funding Investment Proceeds for such Distribution Date are less than
the Covered Amount determined as of such Distribution Date.

         "Revolving Period" shall mean the period beginning on the Closing Date
and ending on the earlier of the close of business on the day immediately
preceding the day the Controlled Accumulation Period or the Early Amortization
Period commences.

         "Series 2002-2" shall mean the Series of Notes for which the terms are
specified in this Indenture Supplement.

         "Series 2002-2 Accounts" shall mean the Reserve Account and the
Principal Funding Account.

         "Series 2002-2 Amortization Event" shall have the meaning specified in
Section 6.01.

         "Series 2002-2 Cut-off Date" shall mean the commencement of business on
March 1, 2002.

         "Series 2002-2 Final Maturity Date" shall mean the earliest to occur of
(a) the January 18, 2011 Distribution Date, (b) the Distribution Date on which
the Notes are paid in full, (c) the termination of the Trust pursuant to Section
11.01 of the Indenture and (d) at the option of the Transferor, the day on which
the right of all Series of Notes to receive payments from the Trust has
terminated.

         "Series 2002-2 Note" shall mean a Class A Note, a Class B Note or a
Class C Note.

         "Series 2002-2 Noteholder" shall mean a Class A Noteholder, a Class B
Noteholder or a Class C Noteholder.

         "Series 2002-2 Principal Shortfall" shall have the meaning specified in
Section 4.08.

         "Series Adjusted Invested Amount" shall mean, with respect to any Due
Period:

         (a) during the Revolving Period, the Invested Amount as of the last day
of the immediately preceding Due Period;

         (b) during the Controlled Accumulation Period, the amount specified in
clause (a) above as of the close of business on the last day of the Revolving
Period less unreimbursed

                                       13
<PAGE>

Investor Charge-offs thereafter; provided, however, that on any date, at the
option of the Transferor (the exercise of such option to be evidenced by written
instructions from the Transferor to the Servicer and the Indenture Trustee) and
upon ten days written notice to the Rating Agency, such amount may be reduced
below the amount specified for the previous Due Period to an amount not less
than the greater of (i) the Adjusted Invested Amount as of the last day of the
immediately preceding Due Period (less any amounts deposited into the Principal
Funding Account since the last day of the immediately preceding Due Period) and
(ii) an amount that, if used as the numerator of the Fixed Investor Percentage
for the remainder of the Controlled Accumulation Period, would assure that
Available Investor Principal Collections for this Series plus the product of the
aggregate amount of the Shared Principal Collections during each Due Period
multiplied by a fraction the numerator of which is the Invested Amount of this
Series and the denominator of which is the aggregate invested amount of all
Series not scheduled to be in their revolving period during such Due Period
would equal at least 125% of the applicable Controlled Accumulation Amount for
such Due Period for so long as the Invested Amount is greater than zero,
assuming for this purpose that (A) the payment rate with respect to Collections
of Principal Receivables remains constant at the level of the immediately
preceding Due Period, (B) the total amount of Principal Receivables theretofore
conveyed to and in the Trust (and the Special Funding Amount) remains constant
at the level existing on the date of such reduction, (C) no amortization event
with respect to any Series will subsequently occur and (D) no additional Series
(other than any Series being issued on the date of such reduction) will be
subsequently issued; and

         (c) during any Early Amortization Period, the Invested Amount as of the
last day of the Revolving Period less unreimbursed Investor Charge-offs
thereafter or, if less, the amount last determined pursuant to clause (b) above
during the Controlled Accumulation Period.

         "Series Portfolio Yield" shall mean, with respect to any Due Period,
the annualized percentage equivalent of a fraction, (a) the numerator of which
is equal to the sum of (i) Available Investor Finance Charge and Administrative
Collections with respect to such Due Period, plus (ii) any Excess Finance Charge
and Administrative Collections that are allocated to Series 2002-2 with respect
to such Due Period, such sum to be calculated after subtracting the Investor
Defaulted Amount for such Due Period, and (b) the denominator of which is the
sum of the Note Principal Balance and the O/C Amount as of the last day of the
immediately preceding Due Period.

         "Servicing Fee Rate" shall mean 2% per annum or such lesser percentage
as may be specified by the Servicer in an Officer's Certificate filed with the
Indenture Trustee; provided, however, that (a) such Officer's Certificate shall
state that, in the reasonable belief of the Servicer, such change in percentage
will not result in an Adverse Effect and (b) the Servicer shall have provided
written notice of such change to the Rating Agency at least ten days prior to
the date such change is to take effect.

         "Subordinated Principal Collections" shall mean with respect to any Due
Period, Available Investor Principal Collections applied in accordance with
Section 4.06 in an amount not to exceed the lesser of the Monthly Subordination
Amount for the related Due Period and the Invested Amount after giving effect to
any Investor Charge-offs for the related Distribution Date.

                                       14
<PAGE>

         "Telerate Page 3750" shall mean the display page currently so
designated on the Telerate Service (or such other page as may replace that page
in that service for the purpose of displaying comparable rates or prices).

         "Variable Funding Series" shall mean any Series, the invested amount of
which may be increased or decreased subject to the satisfaction of certain
conditions specified in the Indenture Supplement related to such Series.

         Each capitalized term defined herein shall relate to the Series 2002-2
Notes and no other Series of Notes issued by the Trust, unless the context
otherwise requires. All capitalized terms used herein and not otherwise defined
herein have the meanings ascribed to them in the Indenture or the Transfer and
Servicing Agreement. In the event that any term or provision contained herein
shall conflict with or be inconsistent with any term or provision contained in
the Indenture or Transfer and Servicing Agreement, the terms and provisions of
this Indenture Supplement shall govern.

         The words "HEREOF," "HEREIN" and "HEREUNDER" and words of similar
import when used in this Indenture Supplement shall refer to this Indenture
Supplement as a whole and not to any particular provision of this Indenture
Supplement; references to any Article, subsection, Section or Exhibit are
references to Articles, subsections, Sections and Exhibits in or to this
Indenture Supplement unless otherwise specified; and the term "INCLUDING" means
"INCLUDING WITHOUT LIMITATION."

                                  ARTICLE III

                                  SERVICING FEE

    Section 3.01     Servicing Compensation.

         (a) Servicing Fee. The share of the Servicing Fee allocable to the
Series 2002-2 Noteholders with respect to any Distribution Date shall equal the
Monthly Servicing Fee. The portion of the Servicing Fee that is not allocable to
the Series 2002-2 Noteholders shall be paid by the holders of the Transferor
Certificates or the noteholders of other Series (as provided in the related
Indenture Supplements), and in no event shall the Trust, the Owner Trustee, the
Indenture Trustee or the Series 2002-2 Noteholders be liable for the share of
the Servicing Fee to be paid by the holders of the Transferor Certificates or
the noteholders of any other Series.

                                       15
<PAGE>

                                   ARTICLE IV

                       RIGHTS OF SERIES 2002-2 NOTEHOLDERS
                  AND ALLOCATION AND APPLICATION OF COLLECTIONS

    Section 4.01     Collections and Allocations.

         (a) Allocations. Collections of Finance Charge and Administrative
Receivables and Principal Receivables and Defaulted Receivables allocated to
Series 2002-2 pursuant to Article VIII of the Indenture shall be allocated and
distributed as set forth in this Article.

         (b) Payments to the Transferor. The Servicer shall on Deposit Dates
direct the Indenture Trustee to withdraw from the Collection Account and pay to
the Transferor the following amounts:

              (i) an amount equal to the Transferor Percentage for the related
    Due Period of Collections of Finance Charge and Administrative Receivables
    to the extent that such amount is then on deposit in the Collection Account;
    and

              (ii) (A) if the Transferor Amount (determined after giving effect
    to any Principal Receivables transferred to the Trust on such Deposit Date)
    exceeds zero, an amount equal to the Transferor Percentage for the related
    Due Period of Collections of Principal Receivables that are then on deposit
    in the Collection Account, and

                   (B) if the Transferor Amount (determined after giving effect
         to any Principal Receivables transferred to the Trust on such Deposit
         Date) does not exceed zero, the amount set forth in clause (A) shall be
         deposited into the Special Funding Account.

         The withdrawals to be made from the Collection Account pursuant to this
subsection 4.01(b) do not apply to deposits into the Collection Account that do
not represent Collections, including payment of the purchase price for the
Receivables or the Notes pursuant to Section 2.06 or 7.01 of the Transfer and
Servicing Agreement or Section 11.04 of the Indenture.

         (c) Allocations to the Series 2002-2 Noteholders and to the O/C Holder.
The Servicer shall, prior to the close of business on any Deposit Date, allocate
to the Series 2002-2 Noteholders and to the O/C Holder the following amounts as
set forth below:

              (i) Allocations of Investor Finance Charge and Administrative
    Collections. The Servicer shall allocate to the Series 2002-2 Noteholders
    and to the O/C Holder and retain in the Collection Account for application
    as provided herein an amount equal to the product of (A) the Investor
    Percentage and (B) the aggregate amount of Collections of Finance Charge and
    Administrative Receivables deposited in the Collection Account on such
    Deposit Date.

                                       16
<PAGE>

              (ii) Allocations of Principal Collections. The Servicer shall
    allocate to the Series 2002-2 Noteholders and to the O/C Holder the
    following amounts as set forth below:

                   (A) Allocations During the Revolving Period. During the
         Revolving Period an amount equal to the product of (I) the Investor
         Percentage and (II) the aggregate amount of Collections of Principal
         Receivables deposited in the Collection Account on such Deposit Date,
         shall be allocated to the Series 2002-2 Noteholders and retained in the
         Collection Account until applied as provided herein.

                   (B) Allocations During the Controlled Accumulation Period.
         During the Controlled Accumulation Period an amount equal to the
         product of (I) the Investor Percentage and (II) the aggregate amount of
         Collections of Principal Receivables deposited in the Collection
         Account on such Deposit Date shall be allocated to the Series 2002-2
         Noteholders and deposited in the Principal Funding Account until
         applied as provided herein; provided, however, that if such Collections
         with respect to such Due Period exceed the Controlled Deposit Amount
         for the related Distribution Date then such excess shall be first,
         retained in the Collection Account for application to reduce the O/C
         Amount to the Required O/C Amount, second, if any other Principal
         Sharing Series in Principal Sharing Group One is outstanding and in its
         amortization period or accumulation period, retained in the Collection
         Account for application, to the extent necessary, as Shared Principal
         Collections to other Series in Principal Sharing Group One on the
         related Distribution Date, and third paid to the holders of the
         Transferor Certificates only if the Transferor Amount on such Deposit
         Date is greater than the Required Transferor Amount (after giving
         effect to all Principal Receivables transferred to the Trust on such
         day) and otherwise shall be deposited in the Special Funding Account
         for Pool One.

                   (C) Allocations During the Early Amortization Period. During
         the Early Amortization Period, an amount equal to the product of (I)
         the Investor Percentage and (II) the aggregate amount of Collections of
         Principal Receivables deposited in the Collection Account on such
         Deposit Date, shall be allocated to the Series 2002-2 Noteholders and
         retained in the Collection Account until applied as provided herein;
         provided, however, that after the date on which an amount of such
         Collections equal to the Note Principal Balance has been deposited into
         the Collection Account and allocated to the Series 2002-2 Noteholders,
         the excess over such amount shall be first, retained in the Collection
         Account for application to reduce the O/C Amount to the Required O/C
         Amount, second, if any other Principal Sharing Series in Principal
         Sharing Group One is outstanding and in its amortization period or
         accumulation period, retained in the Collection Account for
         application, to the extent necessary, as Shared Principal Collections
         on the related Distribution Date, and third paid to the holders of the
         Transferor Certificates only if the Transferor Amount on such date is
         greater than the Required Transferor Amount (after giving effect to all
         Principal Receivables

                                       17
<PAGE>

         transferred to the Trust on such day) and otherwise shall be deposited
         in the Special Funding Account for Pool One.

    Section 4.02     Determination of Monthly Interest.

         (a) The amount of monthly interest ("CLASS A MONTHLY INTEREST")
distributable from the Collection Account with respect to the Class A Notes on
any Distribution Date shall be an amount equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Class A Note
Interest Rate in effect with respect to the related Interest Period, and (ii)
the Class A Note Principal Balance as of the close of business on the last day
of the preceding Due Period.

         On each Determination Date, the Servicer shall determine the excess, if
any (the "CLASS A INTEREST SHORTFALL"), of (x) the Class A Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds expected to be
paid with respect to such Class A Monthly Interest on the related Distribution
Date. If the Class A Interest Shortfall with respect to any Distribution Date is
greater than zero, on each subsequent Distribution Date until such Class A
Interest Shortfall is fully paid, an additional amount ("CLASS A ADDITIONAL
INTEREST") equal to the product of (i) (A) a fraction, the numerator of which is
the actual number of days in the related Interest Period and the denominator of
which is 360, times (B) the Class A Note Interest Rate in effect with respect to
the related Interest Period and (ii) such Class A Interest Shortfall (or the
portion thereof which has not been paid to the Class A Noteholders) shall be
payable as provided herein with respect to the Class A Notes. Notwithstanding
anything to the contrary herein, Class A Additional Interest shall be payable or
distributed to the Class A Noteholders only to the extent permitted by
applicable law.

         (b) The amount of monthly interest ("CLASS B MONTHLY INTEREST")
distributable from the Collection Account with respect to the Class B Notes on
any Distribution Date shall be an amount equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Class B Note
Interest Rate in effect with respect to the related Interest Period, and (ii)
the Class B Note Principal Balance as of the close of business on the last day
of the preceding Due Period.

         On each Determination Date, the Servicer shall determine the excess, if
any (the "CLASS B INTEREST SHORTFALL"), of (x) the Class B Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds expected to be
paid with respect to such Class B Monthly Interest on the related Distribution
Date. If the Class B Interest Shortfall with respect to any Distribution Date is
greater than zero, on each subsequent Distribution Date until such Class B
Interest Shortfall is fully paid, an additional amount ("CLASS B ADDITIONAL
INTEREST") equal to the product of (i) (A) a fraction, the numerator of which is
the actual number of days in the related Interest Period and the denominator of
which is 360, times (B) the Class B Note Interest Rate in effect with respect to
the related Interest Period and (ii) such Class B Interest Shortfall (or the
portion thereof which has not been paid to the Class B Noteholders) shall be
payable as provided herein with respect to the Class B Notes. Notwithstanding
anything to the contrary herein, Class

                                       18
<PAGE>

B Additional Interest shall be payable or distributed to the Class B Noteholders
only to the extent permitted by applicable law.

         (c) The amount of monthly interest ("CLASS C MONTHLY INTEREST")
distributable from the Collection Account with respect to the Class C Notes on
any Distribution Date shall be an amount equal to the product of (i) (A) a
fraction, the numerator of which is the actual number of days in the related
Interest Period and the denominator of which is 360, times (B) the Class C Note
Interest Rate in effect with respect to the related Interest Period and (ii) the
Class C Note Principal Balance as of the close of business on the last day of
the preceding Due Period.

         On each Determination Date, the Servicer shall determine the excess, if
any (the "CLASS C INTEREST SHORTFALL"), of (x) the Class C Monthly Interest for
such Distribution Date over (y) the aggregate amount of funds expected to be
paid with respect to such Class C Monthly Interest on the related Distribution
Date. If the Class C Interest Shortfall with respect to any Distribution Date is
greater than zero, on each subsequent Distribution Date until such Class C
Interest Shortfall is fully paid, an additional amount ("CLASS C ADDITIONAL
INTEREST") equal to the product of (i) (A) a fraction, the numerator of which is
the actual number of days in the related Interest Period and the denominator of
which is 360, times (B) the Class C Note Interest Rate in effect with respect to
the related Interest Period and (ii) such Class C Interest Shortfall (or the
portion thereof which has not been paid to the Class C Noteholders) shall be
payable as provided herein with respect to the Class C Notes. Notwithstanding
anything to the contrary herein, Class C Additional Interest shall be payable or
distributed to the Class C Noteholders only to the extent permitted by
applicable law.

    Section 4.03     Determination of Monthly Principal.

         The amount of monthly principal distributable from the Collection
Account with respect to the Notes and the O/C Amount on each Distribution Date
(the "MONTHLY PRINCIPAL"), beginning with the Distribution Date in the month
following the month in which the Controlled Accumulation Period or, if earlier,
the Early Amortization Period, begins, shall be equal to the least of (a) the
Available Investor Principal Collections on deposit in the Collection Account
with respect to such Distribution Date, (b) for each Distribution Date with
respect to the Controlled Accumulation Period, the sum of the Controlled Deposit
Amount for such Distribution Date and the Excess O/C Amount for the related Due
Period and (c) the Adjusted Invested Amount for such Distribution Date (after
taking into account any adjustments to be made on such Distribution Date
pursuant to Sections 4.05 and 4.06).

    Section 4.04     Application of Available Funds on Deposit in the
Collection Account. The Servicer shall apply, or shall cause the Indenture
Trustee to apply by written instruction to the Indenture Trustee, on each
Distribution Date, Available Investor Finance Charge and Administrative
Collections and Excess Finance Charge and Administrative Collections allocable
to Series 2002-2 in accordance with Section 4.07 and Available Investor
Principal Collections on deposit in the Collection Account with respect to such
Distribution Date to make the following distributions:

                                       19
<PAGE>

         (a) On each Distribution Date, an amount equal to the Available
Investor Finance Charge and Administrative Collections and Excess Finance Charge
and Administrative Collections allocable to Series 2002-2 in accordance with
Section 4.07 with respect to such Distribution Date will be distributed or
deposited in the following priority:

              (i) an amount equal to Class A Monthly Interest for such
    Distribution Date, plus the amount of any Class A Monthly Interest, or
    portion thereof, previously due but not distributed to Class A Noteholders
    on a prior Distribution Date, plus the amount of any Class A Additional
    Interest for such Distribution Date, plus the amount of any Class A
    Additional Interest, or portion thereof, previously due but not distributed
    to Class A Noteholders on a prior Distribution Date, shall be distributed to
    the Paying Agent for payment to Class A Noteholders on such Distribution
    Date;

              (ii) an amount equal to Class B Monthly Interest for such
    Distribution Date, plus the amount of any Class B Monthly Interest
    previously due but not distributed to Class B Noteholders on a prior
    Distribution Date, plus the amount of any Class B Additional Interest for
    such Distribution Date, plus the amount of any Class B Additional Interest,
    or portion thereof, previously due but not distributed to Class B
    Noteholders on a prior Distribution Date, shall be distributed to the Paying
    Agent for payment to Class B Noteholders on the applicable Distribution
    Date;

              (iii) an amount equal to Class C Monthly Interest for such
    Distribution Date, plus the amount of any Class C Monthly Interest
    previously due but not distributed to Class C Noteholders on a prior
    Distribution Date, plus the amount of any Class C Additional Interest for
    such Distribution Date, plus the amount of any Class C Additional Interest,
    or portion thereof, previously due but not distributed to Class C
    Noteholders on a prior Distribution Date, shall be distributed to the Paying
    Agent for payment to Class C Noteholders on the applicable Distribution
    Date;

              (iv) (A) if HFC or an Affiliate of HFC is no longer the Servicer,
    an amount equal to the Monthly Servicing Fee for such Distribution Date,
    plus the amount of any Monthly Servicing Fee, or portion thereof, previously
    due but not distributed to such Servicer on a prior Distribution Date, shall
    be distributed to such Servicer and (B) if HFC or an Affiliate of HFC is no
    longer the Administrator, an amount equal to the Monthly Administration Fee
    for such Distribution Date, plus the amount of any Monthly Administration
    Fee, or portion thereof, previously due but not distributed to such
    Administrator on a prior Distribution Date, shall be distributed to such
    Administrator;

              (v) an amount equal to the Investor Defaulted Amount for such
    Distribution Date shall be treated as a portion of Available Investor
    Principal Collections for such Distribution Date;

              (vi) an amount equal to the sum of the aggregate amount of
    Investor Charge-offs and the amount of Subordinated Principal Collections
    which have not been previously reimbursed shall be treated as a portion of
    Available Investor Principal Collections for such Distribution Date;

                                       20
<PAGE>

              (vii) upon the occurrence of an Event of Default with respect to
    Series 2002-2 and acceleration of the maturity of the Series 2002-2 Notes
    pursuant to Section 5.03 of the Indenture, the balance, if any, up to the
    outstanding Note Principal Balance shall be treated as a portion of
    Available Investor Principal Collections for such Distribution Date for
    distribution to the Series 2002-2 Noteholders;

              (viii) if HFC or an Affiliate of HFC is the Servicer, an amount
    equal to the Monthly Servicing Fee for such Distribution Date that has not
    been paid to the Servicer and any Monthly Servicing Fee, or portion thereof,
    due but not paid to the Servicer on a prior Distribution Date shall be paid
    to the Servicer (unless such amount has been netted against deposits to the
    Collection Account in accordance with Section 8.04 of the Indenture);

              (ix) if HFC or an Affiliate of HFC is the Administrator, an amount
    equal to the Monthly Administration Fee for such Distribution Date and any
    Monthly Administration Fee due but not paid to the Administrator on a prior
    Distribution Date shall be paid to the Administrator (unless such amount has
    been netted against deposits to the Collection Account in accordance with
    Section 8.04 of the Indenture);

              (x) on each Distribution Date from and after the Reserve Account
    Funding Date, but prior to the date on which the Reserve Account terminates
    as described in Section 4.11(f), an amount equal to the excess, if any, of
    the Required Reserve Account Amount over the Available Reserve Account
    Amount shall be deposited into the Reserve Account; and

              (xi) the balance, if any, will constitute a portion of Excess
    Finance Charge and Administrative Collections for such Distribution Date and
    will be available for allocation to other Series in Excess Finance Charge
    Sharing Group One or to the Transferor, as set forth in Section 8.08C of the
    Indenture.

         (b) On each Distribution Date with respect to the Revolving Period, an
amount equal to the Available Investor Principal Collections deposited in the
Collection Account for the related Due Period shall be distributed in the
following order of priority:

              (i) an amount equal to the excess, if any, of the O/C Amount over
    the Required O/C Amount shall be paid to the Transferor, for reduction of
    the O/C Amount, to the extent that the Transferor Amount exceeds zero; and

              (ii) the balance of such Available Investor Principal Collections
    shall be treated as Shared Principal Collections with respect to Principal
    Sharing Group One and applied in accordance with Section 8.05 of the
    Indenture.

         (c) On each Distribution Date with respect to the Controlled
Accumulation Period or the Early Amortization Period, an amount equal to the
Available Investor Principal Collections deposited in the Collection Account for
the related Due Period shall be distributed or deposited in the following order
of priority:

                                       21
<PAGE>

              (i) during the Controlled Accumulation Period and prior to the
    payment in full of the Class A Notes, the Class B Notes, the Class C Notes
    and the O/C Amount an amount equal to the Monthly Principal for such
    Distribution Date shall be first, deposited into the Principal Funding
    Account in an amount not to exceed the Controlled Deposit Amount and second,
    an amount not to exceed the Excess O/C Amount shall be distributed to the
    O/C Holder for reduction of the O/C Amount;

              (ii) during the Early Amortization Period, an amount equal to the
    Monthly Principal for such Distribution Date shall be distributed to the
    Paying Agent for payment to the Class A Noteholders on such Distribution
    Date and on each subsequent Distribution Date until the Class A Note
    Principal Balance has been paid in full;

              (iii) after giving effect to the distribution referred to in
    clause (ii) above, during the Early Amortization Period, an amount equal to
    the Monthly Principal remaining, if any, shall be distributed to the Paying
    Agent for payment to the Class B Noteholders on such Distribution Date and
    on each subsequent Distribution Date until the Class B Note Principal
    Balance has been paid in full;

              (iv) after giving effect to the distribution referred to in
    clauses (ii) and (iii) above, during the Early Amortization Period, an
    amount equal to the Monthly Principal remaining, if any, shall be
    distributed to the Paying Agent for payment to the Class C Noteholders on
    such Distribution Date and on each subsequent Distribution Date until the
    Class C Note Principal Balance has been paid in full;

              (v) after the Class C Note Principal Balance has been reduced to
    zero, during the Early Amortization Period, an amount equal to the Monthly
    Principal remaining, if any, shall be distributed to the O/C Holder, for
    reduction of the O/C Amount, on such Distribution Date and on each
    subsequent Distribution Date until the O/C Amount has been paid in full; and

              (vi) the balance of such Available Investor Principal Collections
    shall be treated as Shared Principal Collections with respect to Principal
    Sharing Group One and applied in accordance with Section 8.05 of the
    Indenture.

         (d) On the earlier to occur of (i) the first Distribution Date with
respect to the Early Amortization Period and (ii) the Expected Principal Payment
Date, the Indenture Trustee, acting in accordance with instructions from the
Servicer, shall withdraw from the Principal Funding Account and distribute to
the Paying Agent for payment first, to the Class A Noteholders up to the Class A
Note Principal Balance, second, to the Class B Noteholders up to the Class B
Note Principal Balance and third, to the Class C Noteholders up to the Class C
Note Principal Balance, the amounts deposited into the Principal Funding Account
pursuant to subsection 4.04(c)(i).

         (e) The Controlled Accumulation Period is scheduled to commence at the
close of business on February 28, 2006; provided, however, that, if the
Accumulation Period Length (determined as described below) is less than 12 Due
Periods, the date on which the Controlled Accumulation Period actually commences
will be delayed to the first Business Day of

                                       22
<PAGE>

the Due Period that is the number of whole Due Periods prior to the Expected
Principal Payment Date at least equal to the Accumulation Period Length and, as
a result, the number of Due Periods in the Controlled Accumulation Period will
at least equal the Accumulation Period Length. On the Determination Date
immediately preceding the February 2006 Distribution Date, and each
Determination Date thereafter until the Controlled Accumulation Period begins,
the Servicer will determine the "ACCUMULATION PERIOD LENGTH" which will equal
the number of whole Due Periods such that the sum of the Accumulation Period
Factors for each Due Period during such period will be equal to or greater than
the Required Accumulation Factor Number; provided, however, that the
Accumulation Period Length will not be determined to be less than one Due
Period; provided further, however, that the determination of the Accumulation
Period Length may be changed at any time if an Officer's Certificate is
delivered indicating that such action will not result in an Adverse Effect.

    Section 4.05     Investor Charge-offs.  On each Determination Date, the
Servicer shall calculate the Investor Defaulted Amount, if any, for the related
Distribution Date. If, on any Distribution Date, the Investor Defaulted Amount
for such Distribution Date exceeds the amount available therefor pursuant to
Section 4.04(a)(v) with respect to such Due Period, the Invested Amount will be
reduced by the amount of such excess, but not by more than the Investor
Defaulted Amount for such Distribution Date (such reduction, an "INVESTOR
CHARGE-OFF").

    Section 4.06     Subordinated Principal Collections.  On each Distribution
Date, the Servicer shall apply, or shall cause the Indenture Trustee to withdraw
from the Collection Account and apply, Subordinated Principal Collections with
respect to such Distribution Date, in an amount equal to the lesser of the (a)
Investor Percentage of all Collections of Principal Receivables received during
the preceding Due Period and (b) the Monthly Subordination Amount for the
preceding Due Period in accordance with the priority set forth in clauses (i)
through (iv) of Section 4.04(a). On each Distribution Date, the Invested Amount
shall be reduced by the amount of Subordinated Principal Collections for such
Distribution Date.

    Section 4.07     Excess Finance Charge and Administrative  Collections.
Subject to Section 8.08C of the Indenture, Excess Finance Charge and
Administrative Collections with respect to the Excess Finance Charge Sharing
Series in Excess Finance Charge Sharing Group One for any Distribution Date will
be allocated to Series 2002-2 in an amount equal to the product of (a) the
aggregate amount of Excess Finance Charge and Administrative Collections with
respect to all the Excess Finance Charge Sharing Series in Excess Finance Charge
Sharing Group One for such Distribution Date and (b) a fraction, the numerator
of which is the Finance Charge Shortfall for Series 2002-2 for such Distribution
Date and the denominator of which is the aggregate amount of Finance Charge
Shortfalls for all the Excess Finance Charge Sharing Series in Excess Finance
Charge Sharing Group One for such Distribution Date. The "FINANCE CHARGE
SHORTFALL" for Series 2002-2 for any Distribution Date will be equal to the
excess, if any, of (a) the full amount required to be paid, without duplication,
pursuant to subsections 4.04(a)(i) through (x) on such Distribution Date over
(b) the Available Investor Finance Charge and Administrative Collections with
respect to the Due Period related to such Distribution Date.

    Section 4.08     Shared Principal Collections. Subject to Section 8.05 of
the Indenture, Shared Principal Collections with respect to the Series in
Principal Sharing Group One for any Distribution Date will be allocated to
Series 2002-2 in an amount equal to the product of (a) the

                                       23
<PAGE>

aggregate amount of Shared Principal Collections with respect to all Principal
Sharing Series in Principal Sharing Group One for such Distribution Date and (b)
a fraction, the numerator of which is the Series 2002-2 Principal Shortfall for
such Distribution Date and the denominator of which is the aggregate amount of
Principal Shortfalls for all the Series which are Principal Sharing Series in
Principal Sharing Group One for such Distribution Date. The "SERIES 2002-2
PRINCIPAL SHORTFALL" will be equal to (a) for any Distribution Date with respect
to the Revolving Period, zero, (b) for any Distribution Date with respect to the
Controlled Accumulation Period, the excess, if any, of the Controlled Deposit
Amount for such Distribution Date and the Excess O/C Amount with respect to the
Due Period related to such Distribution Date over the amount of Available
Investor Principal Collections for such Distribution Date (excluding any portion
thereof attributable to Shared Principal Collections), and (c) for any
Distribution Date with respect to the Early Amortization Period, the excess, if
any, of the Adjusted Invested Amount over the amount of Available Investor
Principal Collections for the Due Period related to such Distribution Date
(excluding any portion thereof attributable to Shared Principal Collections).

    Section 4.09     [Reserved].

    Section 4.10     Principal Funding Account.

         (a) The Indenture Trustee shall establish and maintain with an Eligible
Institution, which may be the Indenture Trustee, in the name of the Trust, on
behalf of the Trust, for the benefit of the Series 2002-2 Noteholders, a
segregated trust account with the corporate trust department of such Eligible
Institution (the "PRINCIPAL FUNDING ACCOUNT"), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2002-2 Noteholders. The Indenture Trustee shall possess all right, title
and interest in all funds on deposit from time to time in the Principal Funding
Account and in all proceeds thereof. The Principal Funding Account shall be
under the sole dominion and control of the Indenture Trustee for the benefit of
the Series 2002-2 Noteholders. If at any time the institution holding the
Principal Funding Account ceases to be an Eligible Institution, the Transferor
shall notify the Indenture Trustee, and the Indenture Trustee upon being
notified (or the Servicer on its behalf) shall, within 10 Business Days, (or
such longer period as to which the Rating Agency has consented) establish a new
Principal Funding Account meeting the conditions specified above with an
Eligible Institution, and shall transfer any cash or any investments to such new
Principal Funding Account. The Indenture Trustee, at the direction of the
Servicer, shall (i) make withdrawals from the Principal Funding Account from
time to time, in the amounts and for the purposes set forth in this Indenture
Supplement, and (ii) on each Distribution Date (from and after the commencement
of the Controlled Accumulation Period) prior to the termination of the Principal
Funding Account, make deposits into the Principal Funding Account in the amounts
specified in, and otherwise in accordance with, subsection 4.04(c)(i).

         (b) Funds on deposit in the Principal Funding Account shall be invested
at the direction of the Servicer by the Indenture Trustee in Eligible
Investments. Funds on deposit in the Principal Funding Account on any
Distribution Date, after giving effect to any withdrawals from the Principal
Funding Account on such Distribution Date, shall be invested in such investments
that will mature so that such funds will be available for withdrawal on or prior
to the following Distribution Date. The Indenture Trustee shall:

                                       24
<PAGE>

              (i) hold each Eligible Investment that constitutes investment
    property through a Securities Intermediary, which Securities Intermediary
    shall agree with the Indenture Trustee that (A) such investment property at
    all times shall be credited to a securities account of the Indenture
    Trustee, (B) all property credited to such securities account shall be
    treated as a financial asset, (C) such Securities Intermediary shall treat
    the Indenture Trustee as entitled to exercise the rights that comprise each
    financial asset credited to such securities account, (D) such Securities
    Intermediary shall comply with entitlement orders originated by the
    Indenture Trustee without the further consent of any other person or entity,
    (E) such Securities Intermediary shall not agree with any person or entity
    other than the Indenture Trustee to comply with entitlement orders
    originated by any person or entity other than the Indenture Trustee, (F)
    such securities account and all property credited thereto shall not be
    subject to any lien, security interest, right of set-off, or encumbrance in
    favor of such Securities Intermediary or anyone claiming through such
    Securities Intermediary (other than the Indenture Trustee), and (G) such
    agreement between such Securities Intermediary and the Indenture Trustee
    shall be governed by the laws of the State of New York; and

              (ii) maintain possession of each other Eligible Investment not
    described in clause (i) above;

provided, that no Eligible Investment shall be disposed of prior to its maturity
date. Terms used in clause (i) above that are defined in the New York UCC and
not otherwise defined herein shall have the meaning set forth in the New York
UCC.

         On each Distribution Date with respect to the Controlled Accumulation
Period and on the first Distribution Date with respect to the Early Amortization
Period, the Indenture Trustee, acting at the Servicer's direction given on or
before such Distribution Date, shall transfer from the Principal Funding Account
to the Collection Account the Principal Funding Investment Proceeds on deposit
in the Principal Funding Account for application as Available Investor Finance
Charge and Administrative Collections for such Distribution Date.

         Principal Funding Investment Proceeds (including reinvested interest)
shall not be considered part of the amounts on deposit in the Principal Funding
Account for purposes of this Indenture Supplement.

    Section 4.11     Reserve Account.

         (a) The Indenture Trustee shall establish and maintain with an Eligible
Institution, which may be the Indenture Trustee in the name of the Trust, on
behalf of the Trust, for the benefit of the Series 2002-2 Noteholders, a
segregated trust account with the corporate trust department of such Eligible
Institution (the "RESERVE ACCOUNT"), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Series 2002-2
Noteholders. The Indenture Trustee shall possess all right, title and interest
in all funds on deposit from time to time in the Reserve Account and in all
proceeds thereof. The Reserve Account shall be under the sole dominion and
control of the Indenture Trustee for the benefit of the Series 2002-2
Noteholders. If at any time the institution holding the Reserve Account ceases
to be an Eligible Institution, the Transferor shall notify the Indenture
Trustee, and the Indenture

                                       25
<PAGE>

Trustee upon being notified (or the Servicer on its behalf) shall, within 10
Business Days (or such longer period as to which the Rating Agency has
consented), establish a new Reserve Account meeting the conditions specified
above with an Eligible Institution, and shall transfer any cash or any
investments to such new Reserve Account. The Indenture Trustee, at the direction
of the Servicer, shall (i) make withdrawals from the Reserve Account from time
to time in an amount up to the Available Reserve Account Amount at such time,
for the purposes set forth in this Indenture Supplement, and (ii) on each
Distribution Date (from and after the Reserve Account Funding Date) prior to
termination of the Reserve Account, make a deposit into the Reserve Account in
the amount specified in, and otherwise in accordance with, subsection
4.04(a)(x).

         (b) Funds on deposit in the Reserve Account shall be invested at the
direction of the Servicer by the Indenture Trustee in Eligible Investments.
Funds on deposit in the Reserve Account on any Distribution Date, after giving
effect to any withdrawals from the Reserve Account on such Distribution Date,
shall be invested in such investments that will mature so that such funds will
be available for withdrawal on or prior to the following Distribution Date. The
Indenture Trustee shall:

              (i) hold each Eligible Investment that constitutes investment
    property through a Securities Intermediary, which Securities Intermediary
    shall agree with the Indenture Trustee that (A) such investment property at
    all times shall be credited to a securities account of the Indenture
    Trustee, (B) all property credited to such securities account shall be
    treated as a financial asset, (C) such Securities Intermediary shall treat
    the Indenture Trustee as entitled to exercise the rights that comprise each
    financial asset credited to such securities account, (D) such Securities
    Intermediary shall comply with entitlement orders originated by the
    Indenture Trustee without the further consent of any other person or entity,
    (E) such Securities Intermediary shall not agree with any person or entity
    other than the Indenture Trustee to comply with entitlement orders
    originated by any person or entity other than the Indenture Trustee, (F)
    such securities account and all property credited thereto shall not be
    subject to any lien, security interest, right of set-off, or encumbrance in
    favor of such Securities Intermediary or anyone claiming through such
    Securities Intermediary (other than the Indenture Trustee), and (G) such
    agreement between such Securities Intermediary and the Indenture Trustee
    shall be governed by the laws of the State of New York; and

              (ii) maintain possession of each other Eligible Investment not
    described in clause (i) above;

provided, that no Eligible Investment shall be disposed of prior to its maturity
date. Terms used in clause (i) above that are defined in the New York UCC and
not otherwise defined herein shall have the meaning set forth in the New York
UCC.

         On each Distribution Date, all interest and earnings (net of losses and
investment expenses) accrued since the preceding Distribution Date on funds on
deposit in the Reserve Account shall be retained in the Reserve Account to the
extent that the Available Reserve Account Amount is less than the Required
Reserve Account Amount, and the balance, if any, shall be deposited into the
Collection Account and included in Available Investor Finance

                                       26
<PAGE>

Charge and Administrative Collections for such Distribution Date. For purposes
of determining the availability of funds or the balance in the Reserve Account
for any reason under this Indenture Supplement, except as otherwise provided in
the preceding sentence, investment earnings on such funds shall be deemed not to
be available or on deposit.

         (c) On or before each Distribution Date with respect to the Controlled
Accumulation Period and on the first Distribution Date with respect to the Early
Amortization Period, the Servicer shall calculate the Reserve Draw Amount;
provided, however, that such amount will be reduced to the extent that funds
otherwise would be available for deposit in the Reserve Account under Section
4.04(a)(x) with respect to such Distribution Date.

         (d) In the event that for any Distribution Date the Reserve Draw Amount
is greater than zero, the Reserve Draw Amount, up to the Available Reserve
Account Amount, shall be withdrawn from the Reserve Account on such Distribution
Date by the Indenture Trustee (acting in accordance with the instructions of the
Servicer) and deposited into the Collection Account for application as Available
Investor Finance Charge and Administrative Collections for such Distribution
Date.

         (e) In the event that the Reserve Account Surplus on any Distribution
Date, after giving effect to all deposits to and withdrawals from the Reserve
Account with respect to such Distribution Date, is greater than zero, the
Indenture Trustee, acting in accordance with the instructions of the Servicer,
shall withdraw from the Reserve Account and pay to the holder of the interest of
the Transferor Certificate an amount equal to such Reserve Account Surplus.

         (f) Upon the earliest to occur of (i) the termination of the Trust
pursuant to Article VIII of the Trust Agreement, (ii) if the Controlled
Accumulation Period has not commenced, the first Distribution Date relating to
the Early Amortization Period and (iii) if the Controlled Accumulation Period
has commenced, the earlier of the first Distribution Date with respect to the
Early Amortization Period and the Expected Principal Payment Date, the Indenture
Trustee, acting in accordance with the instructions of the Servicer, after the
prior payment of all amounts owing to the Series 2002-2 Noteholders that are
payable from the Reserve Account as provided herein, shall withdraw from the
Reserve Account and pay first, to the O/C Holder for reduction of the O/C Amount
until reduced to zero and second, to the Transferor, all amounts, if any, on
deposit in the Reserve Account and the Reserve Account shall be deemed to have
terminated for purposes of this Indenture Supplement; provided, however, that
following the occurrence of an Event of Default with respect to Series 2002-2
and acceleration of the maturity of the Series 2002-2 Notes pursuant to Section
5.03 of the Indenture, the Servicer shall withdraw from the Reserve Account all
amounts on deposit therein and the Indenture Trustee or the Servicer shall
deposit such amounts in the Collection Account for distribution to the Series
2002-2 Noteholders in accordance with Section 5.02 to fund any shortfalls in
amounts owed to such Series 2002-2 Noteholders.

    Section 4.12     Determination of LIBOR.

         (a) On each LIBOR Determination Date, the Indenture Trustee shall
determine LIBOR on the basis of the rate for deposits in United States dollars
for a one-month period which appears on Telerate Page 3750 as of 11:00 a.m.,
London time, on such date. If

                                       27
<PAGE>

such rate does not appear on Telerate Page 3750, the rate for that LIBOR
Determination Date shall be determined on the basis of the rates at which
deposits in United States dollars are offered by the Reference Banks at
approximately 11:00 a.m., London time, on that day to prime banks in the London
interbank market for a one-month period. The Indenture Trustee shall request the
principal London office of each of the Reference Banks to provide a quotation of
its rate. If at least two such quotations are provided, the rate for that LIBOR
Determination Date shall be the arithmetic mean of the quotations. If fewer than
two quotations are provided as requested, the rate for that LIBOR Determination
Date will be the arithmetic mean of the rates quoted by major banks in New York
City, selected by the Servicer, at approximately 11:00 a.m., New York City time,
on that day for loans in United States dollars to leading European banks for a
one-month period.

         (b) The Class A Note Interest Rate, the Class B Note Interest Rate and
the Class C Note Interest Rate applicable to the then current and the
immediately preceding Interest Periods may be obtained by telephoning the
Indenture Trustee at its Corporate Trust Office or such other address and
telephone number as shall be designated by the Indenture Trustee for such
purpose by prior written notice by the Indenture Trustee to each Series 2002-2
Noteholder from time to time.

         (c) On each LIBOR Determination Date, the Indenture Trustee shall send
to the Servicer and the Administrator by facsimile transmission, notification of
LIBOR for the following Interest Period. On the March 26, 2002 LIBOR
Determination Date, such notification set LIBOR as 1.90875%.

    Section 4.13     Investment Instructions. Any investment instructions
required to be given to the Indenture Trustee pursuant to the terms hereof must
be given to the Indenture Trustee no later than 12:00 p.m. (New York City time)
on the date such investment is to be made. In the event the Indenture Trustee
receives such investment instruction later than such time, the Indenture Trustee
may, but shall have no obligation to, make such investment. In the event the
Indenture Trustee is unable to make an investment required in an investment
instruction received by the Indenture Trustee after 12:00 p.m. (New York City
time) on such day, such investment shall be made by the Indenture Trustee on the
next succeeding Business Day. In no event shall the Indenture Trustee be liable
for any investment not made pursuant to investment instructions received after
12:00 p.m. (New York City time) on the day such investment is requested to be
made.

    Section 4.14     Exchange of Notes for Transferor Amount. If the Transferor
purchases Series 2002-2 Notes from Series 2002-2 Noteholders, the Transferor
may, on any Distribution Date (after giving effect to all required allocations
and payments on such Distribution Date), cancel such purchased Series 2002-2
Notes by delivering a written request to the Indenture Trustee to do so;
provided, however, that the Transferor may only cancel Class A, Class B and
Class C Notes it has purchased if the Rating Agency Condition has been satisfied
and a credit enhancement deficiency will not result. The Transferor may in
connection with such cancellation reduce a portion of the O/C Amount and may
(but shall not be required to) cancel such portion of the O/C Amount, provided
that the reduction in the O/C Amount resulting from such cancellation may not
result in the O/C Amount being less than the Required O/C Amount. As a result of
any cancellation of Series 2002-2 Notes pursuant to this Section, (a) the
Invested

                                       28
<PAGE>

Amount shall be reduced by (i) the aggregate principal amount of such purchased
Series 2002-2 Notes and (ii) the reduction in the O/C Amount and (b) the
Transferor Amount shall be increased in an amount equal to such reduction in the
Invested Amount.

                                   ARTICLE V

                        DELIVERY OF SERIES 2002-2 NOTES;
               DISTRIBUTIONS; REPORTS TO SERIES 2002-2 NOTEHOLDERS

    Section 5.01     Delivery and Payment for the Series 2002-2 Notes. With
respect to the Series 2002-2 Notes which are in certificated form, the Issuer
shall execute and the Indenture Trustee shall authenticate the Series 2002-2
Notes in accordance with Section 2.03 of the Indenture. The Indenture Trustee
shall deliver those Series 2002-2 Notes to or upon the order of the Trust when
so authenticated.

    Section 5.02     Distributions.

         (a) On each Distribution Date, the Paying Agent shall distribute to
each Class A Noteholder of record on the related Record Date (other than as
provided in Section 11.02 of the Indenture) such Class A Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and available
on such Distribution Date to pay interest on the Class A Notes pursuant to this
Indenture Supplement.

         (b) On each Distribution Date, the Paying Agent shall distribute to
each Class A Noteholder of record on the related Record Date such Class A
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay principal of the Class
A Notes pursuant to this Indenture Supplement.

         (c) On each Distribution Date, the Paying Agent shall distribute to
each Class B Noteholder of record on the related Record Date (other than as
provided in Section 11.02 of the Indenture) such Class B Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and available
on such Distribution Date to pay interest on the Class B Notes pursuant to this
Indenture Supplement.

         (d) On each Distribution Date, the Paying Agent shall distribute to
each Class B Noteholder of record on the related Record Date such Class B
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay principal of the Class
B Notes pursuant to this Indenture Supplement.

         (e) On each Distribution Date, the Paying Agent shall distribute to
each Class C Noteholder of record on the related Record Date (other than as
provided in Section 11.02 of the Indenture) such Class C Noteholder's pro rata
share of the amounts held by the Paying Agent that are allocated and available
on such Distribution Date to pay interest on the Class C Notes pursuant to this
Indenture Supplement.

                                       29
<PAGE>

         (f) On each Distribution Date, the Paying Agent shall distribute to
each Class C Noteholder of record on the related Record Date such Class C
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay principal of the Class
C Notes pursuant to this Indenture Supplement.

         (g) On each Distribution Date, the Paying Agent shall distribute to the
O/C Holder, in immediately available funds, the amounts held by the Paying Agent
that are allocated and available on such Distribution Date to reduce the O/C
Amount pursuant to this Indenture Supplement.

         (h) The distributions to be made pursuant to this Section 5.02 are
subject to the provisions of Sections 2.06, 6.01 and 7.01 of the Transfer and
Servicing Agreement, Section 11.02 of the Indenture and Section 7.01 of this
Indenture Supplement.

         (i) Except as provided in Section 11.02 of the Indenture with respect
to a final distribution, distributions to Series 2002-2 Noteholders hereunder
shall be made by (i) check mailed to each Series 2002-2 Noteholder (at such
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2002-2 Notes registered in the name of the nominee of a
Clearing Agency, such distribution shall be made in immediately available funds
and (ii) without presentation or surrender of any Series 2002-2 Note or the
making of any notation thereon.

    Section 5.03     Reports and Statements to Series 2002-2 Noteholders.

         (a) On each Distribution Date, the Paying Agent, on behalf of the
Indenture Trustee, shall, provided the Servicer has delivered a statement
substantially in the form of EXHIBIT C, forward to each Series 2002-2 Noteholder
such statement substantially in the form of EXHIBIT C prepared by the Servicer.

         (b) Not later than the second Business Day preceding each Distribution
Date, the Servicer shall deliver to the Owner Trustee, the Indenture Trustee,
the Paying Agent and each Rating Agency (i) a statement substantially in the
form of EXHIBIT C prepared by the Servicer and (ii) a certificate of an
Authorized Officer substantially in the form of EXHIBIT D; provided that the
Servicer may amend the form of EXHIBIT C and EXHIBIT D, from time to time.

         (c) A copy of each statement or certificate provided pursuant to
paragraph (a) or (b) may be obtained by any Series 2002-2 Noteholder by a
request in writing to the Servicer.

         (d) On or before March 31 of each calendar year, beginning with
calendar year 2003, the Paying Agent, on behalf of the Indenture Trustee, shall
furnish or cause to be furnished to each Person who at any time during the
preceding calendar year was a Series 2002-2 Noteholder, a statement prepared by
the Servicer containing the information which is required to be contained in the
statement to Series 2002-2 Noteholders, as set forth in paragraph (a) above,
aggregated for such calendar year together with other information as is required
to be provided by an issuer of indebtedness under the Code. Such obligation of
the Paying Agent shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Paying Agent
pursuant to any requirements of the Code as from time to time in effect.

                                       30
<PAGE>

         (e) On or before March 31 of each calendar year, beginning with March
31, 2003, the Paying Agent, on behalf of the Indenture Trustee, shall forward to
each Series 2002-2 Noteholder copies of each certificate and report furnished to
the Indenture Trustee pursuant to Section 3.05 or 3.06 of the Transfer and
Servicing Agreement.

                                   ARTICLE VI

                        SERIES 2002-2 AMORTIZATION EVENTS

    Section 6.01     Series 2002-2 Amortization Events. If any one of the
following events shall occur with respect to Series 2002-2:

         (a) failure on the part of the Transferor (i) to make any payment or
deposit required by the terms of the Transfer and Servicing Agreement, the
Indenture or this Indenture Supplement on or before the date occurring five
Business Days after the date such payment or deposit is required to be made
therein or herein or (ii) duly to observe or perform in any material respect any
other covenants or agreements of the Transferor set forth in the Transfer and
Servicing Agreement, the Indenture or this Indenture Supplement, which failure
has an Adverse Effect on the Series 2002-2 Noteholders and which continues
unremedied and continues to materially and adversely affect the interests of the
Series 2002-2 Noteholders for a period of 60 days after the date on which
written notice of such failure, requiring the same to be remedied, shall have
been given to the Transferor by the Indenture Trustee, or to the Transferor and
the Indenture Trustee by any Holder of the Series 2002-2 Notes;

         (b) any representation or warranty made by the Transferor in the
Transfer and Servicing Agreement, or any information contained in a computer
file or microfiche list required to be delivered by the Transferor pursuant to
Section 2.01 or subsection 2.09(h) of the Transfer and Servicing Agreement shall
prove to have been incorrect in any material respect when made or when
delivered, which continues to be incorrect in any material respect for a period
of 60 days after the date on which written notice of such failure, requiring the
same to be remedied, shall have been given to the Transferor by the Indenture
Trustee, or to the Transferor and the Indenture Trustee by any Holder of the
Series 2002-2 Notes and as a result of which an Adverse Effect occurs with
respect to the Series 2002-2 Noteholders and such Adverse Effect continues for
the designated period; provided, however, that a Series 2002-2 Amortization
Event pursuant to this subsection 6.01(b) shall not be deemed to have occurred
hereunder if the Transferor has accepted reassignment of the related Receivable,
or all of such Receivables, if applicable, during such period in accordance with
the provisions of the Transfer and Servicing Agreement;

         (c) a failure by the Transferor to convey Receivables in Additional
Accounts or Participation Interests to the Trust within five Business Days after
the day on which it is required to convey such Receivables or Participation
Interests pursuant to subsection 2.09(a) of the Transfer and Servicing
Agreement;

         (d) any Servicer Default shall occur which has an Adverse Effect on the
Series 2002-2 Noteholders;

                                       31
<PAGE>

         (e) the average Series Portfolio Yield for any three consecutive Due
Periods is reduced to a rate which is less than the average of the Base Rates
for such period;

         (f) the Class A Note Principal Balance, the Class B Note Principal
Balance or the Class C Note Principal Balance shall not be paid in full on the
Expected Principal Payment Date;

         (g) without limiting the foregoing, the occurrence of an Event of
Default with respect to Series 2002-2 and an acceleration of the maturity of the
Series 2002-2 Notes pursuant to Section 5.03 of the Indenture; or

         (h) the bankruptcy or insolvency of any other receivables seller;

then, in the case of any event described in subparagraph (a), (b) or (d) after
the applicable grace period, if any, set forth in such subparagraphs, either the
Indenture Trustee or the Holders of Series 2002-2 Notes evidencing more than 50%
of the aggregate Outstanding Amount of Series 2002-2 Notes by notice then given
in writing to the Transferor and the Servicer (and to the Indenture Trustee if
given by the Series 2002-2 Noteholders) may declare that an amortization event
(a "SERIES 2002-2 AMORTIZATION EVENT") has occurred as of the date of such
notice, and, in the case of any event described in subparagraph (c), (e), (f),
or (h), a Series 2002-2 Amortization Event shall occur without any notice or
other action on the part of the Indenture Trustee or the Series 2002-2
Noteholders immediately upon the occurrence of such event.

                                  ARTICLE VII

                       REDEMPTION OF SERIES 2002-2 NOTES;
                   SERIES FINAL MATURITY; FINAL DISTRIBUTIONS

    Section 7.01     Optional Redemption of Series 2002-2 Notes.

         (a) On any day occurring on or after the date on which the Note
Principal Balance is reduced to 10% or less of the sum of the Class A Note
Initial Principal Balance, the Class B Note Initial Principal Balance and the
Class C Note Initial Principal Balance the Transferor shall have the option to
redeem the Series 2002-2 Notes and the O/C Amount, at a purchase price equal to
(i) if such day is a Distribution Date, the Reassignment Amount for such
Distribution Date or (ii) if such day is not a Distribution Date, the
Reassignment Amount for the Distribution Date following such day.

         (b) The Transferor shall give the Servicer and the Indenture Trustee at
least 30 days prior written notice of the date on which the Transferor intends
to exercise such optional redemption. Not later than 1:00 p.m., New York City
time, on such day the Transferor shall deposit into the Principal Funding
Account in immediately available funds the excess of the Reassignment Amount
(less the O/C Amount) over the amount, if any, on deposit in the Principal
Funding Account. The remaining Reassignment Amount shall be distributed to the
O/C Holder for reduction of the O/C Amount. Such redemption option is subject to
payment in full of the Reassignment Amount. Following such deposit into the
Principal Funding Account

                                       32
<PAGE>

and such distribution to the O/C Holder in accordance with the foregoing, the
Invested Amount for Series 2002-2 shall be reduced to zero and the Series 2002-2
Noteholders shall have no further interest in or claim against the Trust. The
Reassignment Amount shall be distributed as set forth in subsection 7.02(a).

    Section 7.02     Series Final Maturity.

         (a) The amount to be paid by the Transferor with respect to Series
2002-2 in connection with (i) a reassignment of Receivables to the Transferor
pursuant to Section 2.06 of the Transfer and Servicing Agreement or (ii) an
Optional Redemption of the Notes pursuant to Section 7.01, shall be the
Reassignment Amount for the first Distribution Date following the Due Period in
which the reassignment obligation arises under the Transfer and Servicing
Agreement. With respect to the Reassignment Amount deposited into the Collection
Account pursuant to Section 7.01 herein or Section 2.06 of the Transfer and
Servicing Agreement or the proceeds from any Foreclosure Remedy pursuant to
Section 5.05 of the Indenture, the Indenture Trustee shall, in accordance with
the written direction of the Servicer, not later than 1:00 p.m. New York City
time, on the related Distribution Date, make deposits or distributions of the
following amounts (in the priority set forth below and, in each case after
giving effect to any deposits and distributions otherwise to be made on such
date) in immediately available funds:

              (i) (x) the Class A Note Principal Balance on such Distribution
    Date will be distributed to the Paying Agent for payment to the Class A
    Noteholders and (y) an amount equal to the sum of (A) Class A Monthly
    Interest for such Distribution Date, (B) any Class A Monthly Interest
    previously due but not distributed to the Class A Noteholders on a prior
    Distribution Date and (C) the amount of Class A Additional Interest, if any,
    for such Distribution Date and any Class A Additional Interest previously
    due but not distributed to the Class A Noteholders on any prior Distribution
    Date, will be distributed to the Paying Agent for payment to the Class A
    Noteholders;

              (ii) (x) the Class B Note Principal Balance on such Distribution
    Date will be distributed to the Paying Agent for payment to the Class B
    Noteholders and (y) an amount equal to the sum of (A) Class B Monthly
    Interest for such Distribution Date, (B) any Class B Monthly Interest
    previously due but not distributed to the Class B Noteholders on a prior
    Distribution Date and (C) the amount of Class B Additional Interest, if any,
    for such Distribution Date and any Class B Additional Interest previously
    due but not distributed to the Class B Noteholders on any prior Distribution
    Date, will be distributed to the Paying Agent for payment to the Class B
    Noteholders;

              (iii) (x) the Class C Note Principal Balance on such Distribution
    Date will be distributed to the Paying Agent for payment to the Class C
    Noteholders and (y) an amount equal to the sum of (A) Class C Monthly
    Interest for such Distribution Date, (B) any Class C Monthly Interest
    previously due but not distributed to the Class C Noteholders on a prior
    Distribution Date and (C) the amount of Class C Additional Interest, if any,
    for such Distribution Date and any Class C Additional Interest previously
    due but not distributed to the Class C Noteholders on any prior Distribution
    Date, will be distributed to the Paying Agent for payment to the Class C
    Noteholders; and

                                       33
<PAGE>

              (iv) the O/C Amount on such Distribution Date will be distributed
    to the Paying Agent for payment to the O/C Holder.

         (b) Notwithstanding anything to the contrary in this Indenture
Supplement, the Indenture or the Transfer and Servicing Agreement, all amounts
distributed to the Paying Agent pursuant to subsection 7.02(a) for payment to
the Series 2002-2 Noteholders shall be deemed distributed in full to the Series
2002-2 Noteholders on the date on which such funds are distributed to the Paying
Agent pursuant to this Section and shall be deemed to be a final distribution
pursuant to Section 11.02 of the Indenture.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

    Section 8.01     Ratification of Indenture. As supplemented by this
Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be read,
taken and construed as one and the same instrument.

    Section 8.02     Counterparts. This Indenture Supplement may be executed in
two or more counterparts, and by different parties on separate counterparts,
each of which shall be an original, but all of which shall constitute one and
the same instrument.

    Section 8.03     Governing Law. THIS INDENTURE SUPPLEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

    Section 8.04     Transfer of the O/C Amount. Notwithstanding anything to the
contrary in this Indenture Supplement, no interest in the O/C Amount may be
directly or indirectly sold, assigned, pledged, hypothecated, exchanged,
participated or otherwise transferred (other than in connection with the
transfer upon initial issuance to the Indenture Trustee as security for the
Series 2002-2 Notes) except to a Person who is a "United States person" for
United States federal income tax purposes and only upon the prior delivery of a
Tax Opinion to the Indenture Trustee, and any such transfer in violation of
these requirements shall be null and void ab initio.

    Section 8.05     Limitation of Liability. Notwithstanding any other
provision herein or elsewhere, this Agreement has been executed and delivered by
Wilmington Trust Company, not in its individual capacity, but solely in its
capacity as Owner Trustee of the Trust, in no event shall Wilmington Trust
Company in its individual capacity have any liability in respect of the
representations, warranties, or obligations of the Trust hereunder or under any
other document, as to all of which recourse shall be had solely to the assets of
the Trust, and for all purposes of this Agreement and each other document, the
Owner Trustee (as such or in its individual capacity) shall be subject to, and
entitled to the benefits of, the terms and provisions of the Trust Agreement.

                                       34
<PAGE>

    Section 8.06     Perfection of Security Interest.

         (a) The Issuer hereby represents and warrants, as of the closing date,
that:

              (i) this Agreement creates a valid and continuing security
    interest (as defined in the applicable UCC) in the Receivables in favor of
    the Indenture Trustee on behalf of the Holders of the Notes including the
    Series 2002-2 Noteholders, which security interest is prior to all other
    liens, and is enforceable as such as against creditors of and purchasers
    from the Issuer;

              (ii) the Receivables constitute "accounts" within the meaning of
    the applicable UCC;

              (iii) the Issuer owns and has good and marketable title to the
    Receivables free and clear of any lien, claim or encumbrance of any Person;

              (iv) the Issuer has caused or will have caused, within ten days,
    the filing of all appropriate financing statements in the proper filing
    office in the appropriate jurisdictions under applicable law in order to
    perfect the security interest in the Receivables granted to the Indenture
    Trustee on behalf of the Holders of the Notes including the Series 2002-2
    Noteholders hereunder;

              (v) other than the security interest granted to the Indenture
    Trustee, pursuant to this Agreement, the Issuer has not pledged, assigned,
    sold, granted a security interest in, or otherwise conveyed any of the
    Receivables. The Issuer has not authorized the filing of and is not aware of
    any financing statements against the Issuer that include a description of
    collateral covering the Receivables other than any financing statement
    relating to the security interest granted to the Indenture Trustee hereunder
    or that has been terminated. The Issuer is not aware of any judgment or tax
    lien filings against the Issuer.

         (b) The Indenture Trustee may not waive a breach of any of the
foregoing representations unless prior to such waiver (1) it has notified
Standard & Poor's Rating Service ("S&P") of its intention to waive such breach
and S&P has informed the Indenture Trustee, and the Indenture Trustee has
informed the Series 2002-2 Noteholders, as to whether such waiver will result in
a downgrade of the Series 2002-2 Notes and (2) the Indenture Trustee has
subsequently received the unanimous consent of the Series 2002-2 Noteholders to
such waiver.

    Section 8.07     Transfer Restrictions. Each purchaser or transferee of a
Note that is a Plan or a person acting on behalf of or investing the assets of a
Plan shall be deemed to represent that its purchase and continued holding of the
Note will be covered by a U.S. Department of Labor prohibited transaction class
exemption.

    Section 8.08     Notice of Servicing Delegation. To the extent that the
Servicer delegates any of its servicing duties pursuant to Section 5.07 of the
Transfer and Servicing Agreement, other than to Household Corporation or an
affiliate thereof, the Issuer shall provide, or cause to be provided, written
notice to Standard & Poor's of such a delegation of servicing duties by the
Servicer.

                                       35
<PAGE>

    Section 8.09 Zero Balance Account Removal. To the extent that a Zero
Balance Account, having a zero balance for less than 180 consecutive days, is
the subject of a removal pursuant to Section 2.10 of the Transfer and Servicing
Agreement, the Issuer shall provide, or cause to be provided, written notice of
such removal to Standard & Poor's.

    Section 8.10 Notice of Insolvency Events. To the extent that an
Insolvency Event shall occur with respect to (a) the Transferor, as specified in
Section 6.01 of the Transfer and Servicing Agreement, (b) the Bank, as specified
in Section 8.02 of the HRAC RPA, or (c) HRAC, as specified in Section 8.02 of
the Transferor RPA, the Issuer shall provide, or cause to be provided, written
notice of such occurrence to Standard & Poor's.

                            [SIGNATURE PAGE FOLLOWS]

                                       36
<PAGE>

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

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

                                   By:   /s/ Patricia M. Child
                                      ------------------------------------------
                                      Name:  Patricia M. Child
                                      Title: Vice President

                                   U.S. BANK NATIONAL ASSOCIATION,
                                   not in its individual capacity, but solely as
                                   Indenture Trustee and Securities Intermediary

                                   By:   /s/ Joseph B. Feil
                                      ------------------------------------------
                                      Name:  Joseph B. Feil
                                      Title: Senior Financial Services Officer

                                       37<PAGE>
                                                                    EXHIBIT 10.1

--------------------------------------------------------------------------------

                            HOUSEHOLD BANK (SB), N.A.

                                       and

                    HOUSEHOLD RECEIVABLES ACQUISITION COMPANY

                              AMENDED AND RESTATED
                         RECEIVABLES PURCHASE AGREEMENT

                            Dated as of June 12, 2002

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                       PAGE
<S><C>                                                                                                 <C>
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................................................................9

         Section 4.01.Representations and Warranties of the Bank Relating to the Bank....................9
         Section 4.02.Representations and Warranties of the Bank Relating to the Agreement and the
                           Receivables..................................................................11
         Section 4.03.Representations and Warranties of HRAC............................................12

ARTICLE V COVENANTS.....................................................................................13

         Section 5.01.Covenants of the Bank.............................................................13

ARTICLE VI REPURCHASE OBLIGATION........................................................................14

         Section 6.01.Repurchase Obligation Termination.................................................14

ARTICLE VII CONDITIONS PRECEDENT........................................................................15

         Section 7.01.Conditions to HRAC's Obligations..................................................15
         Section 7.02.Conditions Precedent to the Bank's Obligations....................................15

ARTICLE VIII TERM AND PURCHASE TERMINATION..............................................................16

         Section 8.01.Term..............................................................................16
         Section 8.02.Purchase Termination..............................................................16

ARTICLE IX MISCELLANEOUS PROVISIONS.....................................................................16

         Section 9.01.Amendment.........................................................................16
         Section 9.02.Governing Law.....................................................................17
         Section 9.03.Notices...........................................................................17
         Section 9.04.Severability of Provisions........................................................17
         Section 9.05.Assignment........................................................................17
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
<S><C>                                                                                                 <C>
         Section 9.06.Acknowledgement and Agreement of the Bank.........................................18
         Section 9.07.Further Assurances................................................................18
         Section 9.08.No Waiver; Cumulative Remedies....................................................18
         Section 9.09.Counterparts......................................................................19
         Section 9.10.Binding; Third-Party Beneficiaries................................................19
         Section 9.11.Merger and Integration............................................................19
         Section 9.12.Headings..........................................................................19
         Section 9.13.Schedules and Exhibits............................................................19
         Section 9.14.Nonpetition Covenant..............................................................19

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
</TABLE>

                                       ii
<PAGE>
     AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as of June 12,
2002, by and between HOUSEHOLD RECEIVABLES ACQUISITION COMPANY, a Delaware
corporation ("HRAC"), and HOUSEHOLD BANK (SB), N.A., a national banking
association (the "BANK"), which amends and restates the Receivables Purchase
Agreement, dated as of June 12, 2001, by and between HRAC and the Bank.

                              W I T N E S S E T H:

     WHEREAS, HRAC 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 HRAC upon the terms and conditions hereinafter set forth;

     WHEREAS, it is contemplated that certain of the Receivables purchased
hereunder have been, or will be, transferred by HRAC to HRSI Funding, Inc. II
then to the Trust (hereinafter defined) in connection with the issuance of
certain securities;

     WHEREAS, the Bank and HRAC desire to amend this Agreement.

     NOW, THEREFORE, it is hereby agreed by and between HRAC 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.
<PAGE>

     "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 HRAC 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 Amended and Restated Receivables Purchase
Agreement and all amendments hereof and supplements hereto.

     "Bank" shall mean 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 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.

                                       2
<PAGE>

     "Excluded Account" shall mean any revolving credit account as to which the
Bank and HRAC 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.

     "HRAC" shall mean Household Receivables Acquisition Company, a Delaware
corporation, and its successors and permitted assigns.

     "Indenture" shall mean the Master Indenture between the Trust and U.S. Bank
National Association, as Indenture Trustee, dated as of June 12, 2001 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 HRAC 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 Household Private Label Credit Card
Master Note Trust I Trust Agreement, dated as of June 12, 2001 with the Company,
as

                                       3
<PAGE>

and acting in the capacity of Owner Trustee thereunder, or its successor in
interest, or any successor trustee appointed as provided thereunder.

     "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 or the Trust.

     "Servicer" shall mean Household 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 Transfer and Servicing
Agreement, dated as of June 12, 2001 among Household Finance Corporation, as
Servicer, the Company, as Transferor, and the Owner Trustee on behalf of the
Trust, and all amendments and supplements thereto.

     "Transferor RPA" shall mean the Receivables Purchase Agreement, dated June
12, 2001, between HRAC and the Company.

     "Transition Date" shall mean July 1, 2002.

     "Trust" shall mean 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.

                                       4
<PAGE>

     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 HRAC (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 HRAC, (ii) that such financing statements shall name
the Bank, as seller, and HRAC, 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

                                       5
<PAGE>

statements, which shall be delivered as filed) to HRAC as soon as
is practicable after filing.

     (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 HRAC in accordance with this
Agreement and, as applicable, have been conveyed by HRAC 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 by including in such computer
files the code that identifies each such Account. On or prior to each
Securitization Date, HRAC 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 HRAC 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 HRAC 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

                                       6
<PAGE>

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.

     (f) The Bank and HRAC 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 HRAC 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 HRAC 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, HRAC 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, HRAC 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 HRAC 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 HRAC mutually
agree (and discounted to take into account

                                       7
<PAGE>

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 HRAC 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 HRAC 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 HRAC may mutually agree so as to result in a Purchase Price determined to be
the fair market value of such Purchased Assets. The Bank and HRAC confirm that a
Purchase Price equal to the fair market value of all Purchased Assets sold to
HRAC through the date hereof has been paid by HRAC to the Bank. The Purchase
Price shall be paid in cash (including netting against other payments) or in
other immediately available funds by HRAC.

     (b) Notwithstanding any other provision of this Agreement, the Bank shall
not be obligated to continue to sell Purchased Assets to HRAC 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 HRAC 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 HRAC 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
HRAC and the Servicer a non-exclusive license to use the name "Household Bank
(SB), 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.

                                       8
<PAGE>

                                   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, HRAC 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 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,
HRAC, 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

                                       9
<PAGE>

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
HRAC, the Company or the Trust;

     (i) the consolidated financial statements of the Bank do not include the
assets or liabilities of HRAC, 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;

     (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.ss.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 HRAC 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.

                                       10
<PAGE>

     The representations and warranties set forth in this Section 4.01 shall
survive the transfer and assignment of the Receivables to HRAC. Upon discovery
by the Bank or HRAC 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 HRAC 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 HRAC free and clear of any Lien;

          (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 HRAC 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 HRAC 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 HRAC 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
HRAC. Upon discovery by either the Bank or HRAC 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 HRAC in attempting to cure any such breach.

                                       11
<PAGE>

     Section 4.03. Representations and Warranties of HRAC. As of the Closing
Date, on each Addition Date and on each Business Day on or after the Transition
Date, HRAC hereby represents and warrants to, and agrees with, the Bank that:

     (a) Organization and Good Standing. HRAC 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 HRAC by all necessary corporate action on the part of HRAC.

     (c) No Conflict. The execution and delivery of this Agreement and any other
document or instrument delivered hereto by HRAC, the performance of the
transactions contemplated by this Agreement, and the fulfillment of the terms of
this Agreement applicable to HRAC, 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 HRAC
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 HRAC and the fulfillment of the terms contemplated herein and therein
applicable to HRAC will not conflict with or violate any Requirements of Law
applicable to HRAC.

     (e) No Proceedings. There are no proceedings or investigations pending or,
to the best knowledge of HRAC, threatened against HRAC, 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 HRAC, would materially and adversely affect the performance by HRAC
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 HRAC in connection with the execution and
delivery by HRAC 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 HRAC. Upon discovery by HRAC or the
Bank of a breach of any of the foregoing representations and warranties, the
party

                                       12
<PAGE>

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 HRAC 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 HRAC'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 HRAC 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 HRAC 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 HRAC, after the date of such inability, all Collections that
HRAC will be required to allocate and pay to the Company pursuant to Section
5.01 of the Receivables Purchase Agreement between HRAC and the Company.

     (d) Delivery of Collections or Recoveries. In the event that the Bank
receives Collections or Recoveries, the Bank agrees to pay to HRAC (or to the
Servicer if HRAC so directs) all such Collections and Recoveries as soon as
practicable after receipt thereof.

     (e) Notice of Liens. The Bank shall notify HRAC 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 HRAC.

     (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

                                       13
<PAGE>

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 HRAC 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.

                                   ARTICLE VI

                              REPURCHASE OBLIGATION

     Section 6.01. Repurchase Obligation Termination. On the Transition Date,
all prior obligations of the Bank to accept reassignment of HRAC'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.

                                       14
<PAGE>

                                  ARTICLE VII

                              CONDITIONS PRECEDENT

     Section 7.01. Conditions to HRAC's Obligations. The obligations of HRAC 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 HRAC, 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 HRAC, and shall
deliver a file-stamped copy of such financing statements or other evidence of
such filings to HRAC, 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 HRAC, and HRAC shall have received from the Bank copies of
all documents (including, without limitation, records of corporate proceedings)
relevant to the transactions herein contemplated as HRAC 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 HRAC 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) Payment or provision for payment of the Purchase Price in accordance
with the provision of Section 3.01 hereof shall have been made; and

                                       15
<PAGE>

     (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 HRAC
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 shall commence and be effective on May 7, 2001 and shall continue
until mutually agreed otherwise by the parties.

     Section 8.02. Purchase Termination.

     (a) Consistent with 12 U.S.C. ss. 1821(e)(12), HRAC 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. ss.
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 HRAC has grounds to terminate this Agreement other
than those contemplated by 12 U.S.C. ss. 1821(e)(12), the FDIC may request that
HRAC not immediately terminate the Agreement, and, upon such request, HRAC 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 HRAC
and the FDIC (the "Continuation Period"). As compensation for any Receivables
purchased from the Bank during the Continuation Period, HRAC shall pay an amount
equal to the market rate for such Receivables, as mutually agreed by the FDIC
and HRAC.

     (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.ss.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 HRAC and the Bank in accordance with this
Section 9.01. This Agreement may be amended from time to time by HRAC 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

                                       16
<PAGE>

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 HRAC; 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 HRAC have been notified in writing that the Rating Agency
Condition has been satisfied; provided, further, the Bank and HRAC 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 HRAC, 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 HRAC, 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, Household 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 HRAC'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 in, to
and under this Agreement to the Indenture Trustee

                                       17
<PAGE>

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, this Agreement may not be assigned by the parties hereto unless the
Bank shall assign its rights, title and interests in, to and under this
Agreement to (a) any successor by merger assuming this Agreement (b) to any
affiliate owned directly or indirectly by Household International, Inc. which
assumes the obligations of this Agreement or (c) to any entity provided that the
Rating Agency has advised HRAC and the Bank that the Rating Agency Condition has
been satisfied.

     Section 9.06. Acknowledgement and Agreement of the Bank. By execution
below, the Bank expressly acknowledges and agrees that all of HRAC's right,
title, and interest in, to, and under this Agreement as it relates to
Securitized Receivables, including, without limitation, all of HRAC's right,
title, and interest in and to the Securitized Receivables purchased pursuant to
this Agreement, shall be assigned by HRAC 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 HRAC, due to a breach by HRAC of this
Agreement or for any other reason, and notwithstanding the bankruptcy of HRAC or
any other event whatsoever, the Bank's sole remedy shall be a claim against HRAC
for money damages, and then only to the extent of funds received by HRAC
pursuant to the Receivables Purchase Agreement between HRAC 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 HRAC
hereunder with respect to the Securitized Receivables which are to be paid by
HRAC 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 HRAC, directly to the Company.

     Section 9.07. Further Assurances. HRAC 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.

     Section 9.08. No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of HRAC 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.

                                       18
<PAGE>

     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 HRAC to invoke the process of any Governmental
Authority for the purpose of commencing or sustaining a case against HRAC 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 HRAC or any substantial part of its property or
ordering the winding-up or liquidation or the affairs of HRAC.

                                       19
<PAGE>

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

                                       HOUSEHOLD BANK (SB), N.A.

                                       By:    /s/ J.W. Hoff
                                              ----------------------------------
                                              Name:  J.W. Hoff
                                              Title:  Vice President

                                       HOUSEHOLD RECEIVABLES ACQUISITION COMPANY

                                       By:    /s/ J.W. Hoff
                                              ----------------------------------
                                              Name:  J.W. Hoff
                                              Title:  Vice President

                                       20

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