Document:

<PAGE>
                                                                    EXHIBIT 10.6

                          HOUSEHOLD INTERNATIONAL, INC.

              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                                   ----------
                    NON-TAX QUALIFIED STOCK OPTION AGREEMENT
                             FOR WILLIAM F. ALDINGER

         THIS AGREEMENT, between HOUSEHOLD INTERNATIONAL, INC., a Delaware
corporation (the "Company"), and the employee referenced on the cover sheet to
this Agreement (the "Employee"), is made pursuant to the Household International
1996 Long-Term Executive Incentive Compensation Plan (the "Incentive Plan"). The
terms of this Agreement are as follows:

         1. The Company hereby grants to the Employee an option, for a period of
10 years and one day from the grant date, to purchase, on these terms and
conditions and also subject to the Incentive Plan, shares of the common stock of
the Company as set forth in the cover sheet to this Agreement.

         2. No shares may be purchased under this option for one year from the
grant date. After one year, this option may, unless sooner terminated under the
provisions hereof, be exercised in numbers of shares not to exceed 25 percent of
the aggregate number of shares under option on and after each of the first,
second, third and fourth anniversaries of the grant date, provided that 100% of
the shares in this option may be exercised (a) on the last day of employment in
the case of an Employee who is retirement-eligible under the terms of a pension
plan of the Company or a subsidiary, or (b) if so determined by the Compensation
Committee of the Board of Directors (the "Committee") during the Employee's
employment. An Employee may exercise all or a portion of a vested option during
the option term.

                  To exercise an option you must give the Company ten days
written notice of exercise specifying the number of shares to be purchased,
which must be a minimum of twenty-five (25) shares, and include payment for the
shares. Payment for the option may be made by cash or check to the order of the
Company, and also may be made with shares of common stock of the Company valued
at the then fair market value of such shares or by a combination of cash and
shares of common stock pursuant to such Committee or Board of Directors rules in
effect at the time the option is exercised. The Committee or Board of Directors
may at any time rescind the right to use common stock of the Company in payment
for shares purchased through the option.

         3. The option may not be transferred except by will or the laws of
descent and distribution, unless the Company has notified you to the contrary.
The option may be exercised during the lifetime of the Employee only by the
Employee and only while he or she is an employee of the Company (or a subsidiary
thereof) and shall have been continuously so employed from the grant date,
except that: (i) in the event of termination of employment of the Employee and
the Employee is retirement-eligible under the terms of a pension plan of the
Company or a subsidiary, the option may be exercised at any time before the
expiration date of the option; (ii) in the event of termination of employment
due to permanent and total disability of the Employee and the Employee is not
retirement-eligible under the terms of a pension plan of the Company or a
subsidiary, the option may be exercised within twelve months following the date
of such termination of employment; (iii) in the event of death during
employment, the option may be exercised by the executor, administrator, or other
personal representative of the Employee within five years succeeding death if
such Employee was retirement-eligible under the terms of a pension plan of the
Company or a subsidiary, or twelve months if such Employee was not
retirement-eligible under the terms of a pension plan of the Company or a
subsidiary; (iv) in the event of termination of employment other than as set
forth in subsections (i), (ii) or (iii) above, the option may be exercised
within three months following the date of termination, except for termination
for cause; (v) in the event of death of the Employee following termination of
employment, the option may be exercised by the executor, administrator, or other
personal representative of the Employee, notwithstanding the time periods
specified in (i), (ii), (iii) or (iv) above, within a) twelve months following
death or b) the remainder of the period in which the Employee was entitled to
exercise the option, whichever period is longer. If the Committee determines
that the termination is for cause, the option will not under any circumstances
be exercisable following termination

<PAGE>

of employment. Notwithstanding anything herein to the contrary, the option may
not be exercised pursuant to this Section after the expiration of the term of
such option and may be exercised only to the extent that the holder was entitled
to exercise such option on the date of termination of employment (taking into
account any accelerated vesting as set forth in this Agreement). The option will
expire in all events and for all purposes 10 years and one day from the grant
date.

         4. Notwithstanding anything to the contrary contained in any Employment
Agreement, Employment Protection Agreement or similar agreement between the
Employee and the Company, as in effect on the date hereof, the option will not
be subject to the automatic Change in Control vesting provision set forth in
Section 11(a)(i) of the Incentive Plan or the Change in Control post-termination
exercise period provision set forth in Section 5(b)(i) of the Incentive Plan;
provided, however, that, if following a Change in Control the Employee's
employment is terminated by the Company for a reason other than due to death,
"Disability" or "Cause" or the Employee terminates employment for "Good Reason,"
the option will automatically vest in full regardless of the one year holding
period and remain exercisable for the remainder of the original term (ten years
and one day). For purposes of this Agreement, "Cause, " Disability" and "Good
Reason" shall have the meanings given to such terms in the Employment Agreement
by and between Household International, Inc. and the Employee dated as of
November 14, 2002.

         5. Subject to the last sentence of Section 9 of the Incentive Plan, if
it is determined that the Employee or former Employee, while employed by the
Company or any subsidiary or otherwise associated with the Company or any
subsidiary as a consultant, advisor or in another similar capacity, engaged at
any time in any activity in competition with any activity of the Company or any
subsidiary or inimical, contrary or harmful to the interests of the Company or
any subsidiary including, but not limited to: (i) conduct related to the
Employee's position for which either criminal or civil penalties against the
Employee may be sought, (ii) violation of the Company's policies,
notwithstanding the Company's decision or inability to, or not to, terminate the
Employee for such violation, (iii) accepting employment with or serving as a
consultant, advisor or in any other capacity to an employer that is in
competition with or acting against the interests of the Company or any
subsidiary, including employing or recruiting any present employee of the
Company or any subsidiary for such competitor, (iv) disclosing or misusing any
confidential information or material concerning the Company or any subsidiary,
or (v) participating in a hostile takeover attempt of the Company, then the
Committee, in its sole discretion, may cancel any outstanding option at any
time.

         6. The Company shall not be required to issue or deliver any
certificate or certificates for shares of stock purchased upon the exercise of
the option herein granted prior to the listing of such shares on all stock
exchanges on which the Company's stock shall then be listed. Upon any exercise
of said option, the Company shall take the steps required for listing.

         7. Neither the Employee nor his personal representative shall have any
of the rights or privileges of a stockholder with respect to any shares subject
to this option unless and until certificates evidencing such shares shall have
been delivered.

         8. Notice to the Company shall be addressed to the Company in care of
the Shareholder Services Department at 2700 Sanders Road, Prospect Heights,
Illinois 60070 and notice to the Employee shall be addressed to him or her at
the address as set forth on the cover sheet of this Agreement, or at such other
address as either party may hereafter designate in writing to the other.

         9. Anything herein to the contrary notwithstanding (except as provided
in Section 4 with respect to Sections 5(b)(i) and 11(a)(i) of the Incentive
Plan), this Agreement shall be subject to amendment by the Company from time to
time to the extent permitted by the Incentive Plan and is subject to the
provisions of the Incentive Plan.

<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                                   ----------
                    NON-TAX QUALIFIED STOCK OPTION AGREEMENT
        FOR SENIOR MANAGEMENT TEAM W/EMPLOYMENT AGREEMENTS DATED 11/14/02

         THIS AGREEMENT, between HOUSEHOLD INTERNATIONAL, INC., a Delaware
corporation (the "Company"), and the employee referenced on the cover sheet to
this Agreement (the "Employee"), is made pursuant to the Household International
1996 Long-Term Executive Incentive Compensation Plan (the "Incentive Plan"). The
terms of this Agreement are as follows:

         1. The Company hereby grants to the Employee an option, for a period of
10 years and one day from the grant date, to purchase, on these terms and
conditions and also subject to the Incentive Plan, shares of the common stock of
the Company as set forth in the cover sheet to this Agreement.

         2. No shares may be purchased under this option for one year from the
grant date. After one year, this option may, unless sooner terminated under the
provisions hereof, be exercised in numbers of shares not to exceed 25 percent of
the aggregate number of shares under option on and after each of the first,
second, third and fourth anniversaries of the grant date, provided that 100% of
the shares in this option may be exercised (a) on the last day of employment in
the case of an Employee who is retirement-eligible under the terms of a pension
plan of the Company or a subsidiary, or (b) if so determined by the Compensation
Committee of the Board of Directors (the "Committee") during the Employee's
employment. An Employee may exercise all or a portion of a vested option during
the option term.

                  To exercise an option you must give the Company ten days
written notice of exercise specifying the number of shares to be purchased,
which must be a minimum of twenty-five (25) shares, and include payment for the
shares. Payment for the option may be made by cash or check to the order of the
Company, and also may be made with shares of common stock of the Company valued
at the then fair market value of such shares or by a combination of cash and
shares of common stock pursuant to such Committee or Board of Directors rules in
effect at the time the option is exercised. The Committee or Board of Directors
may at any time rescind the right to use common stock of the Company in payment
for shares purchased through the option.

         3. The option may not be transferred except by will or the laws of
descent and distribution, unless the Company has notified you to the contrary.
The option may be exercised during the lifetime of the Employee only by the
Employee and only while he or she is an employee of the Company (or a subsidiary
thereof) and shall have been continuously so employed from the grant date,
except that: (i) in the event of termination of employment of the Employee and
the Employee is retirement-eligible under the terms of a pension plan of the
Company or a subsidiary, the option may be exercised at any time before the
expiration date of the option; (ii) in the event of termination of employment
due to permanent and total disability of the Employee and the Employee is not
retirement-eligible under the terms of a pension plan of the Company or a
subsidiary, the option may be exercised within twelve months following the date
of such termination of employment; (iii) in the event of death during
employment, the option may be exercised by the executor, administrator, or other
personal representative of the Employee within five years succeeding death if
such Employee was retirement-eligible under the terms of a pension plan of the
Company or a subsidiary, or twelve months if such Employee was not
retirement-eligible under the terms of a pension plan of the Company or a
subsidiary; (iv) in the event of termination of employment other than as set
forth in subsections (i), (ii) or (iii) above, the option may be exercised
within three months following the date of termination, except for termination
for cause; (v) in the event of death of the Employee following termination of
employment, the option may be exercised by the executor, administrator, or other
personal representative of the Employee, notwithstanding the time periods
specified in (i), (ii), (iii) or (iv) above, within a) twelve months following
death or b) the remainder of the period in which the Employee was entitled to
exercise the option, whichever period is longer. If the Committee determines
that the termination is for cause, the option will not under any circumstances
be exercisable following termination

<PAGE>

of employment. Notwithstanding anything herein to the contrary, the option may
not be exercised pursuant to this Section after the expiration of the term of
such option and may be exercised only to the extent that the holder was entitled
to exercise such option on the date of termination of employment (taking into
account any accelerated vesting as set forth in this Agreement). The option will
expire in all events and for all purposes 10 years and one day from the grant
date.

         4. Notwithstanding anything to the contrary contained in any Employment
Agreement, Employment Protection Agreement or similar agreement between the
Employee and the Company, as in effect on the date hereof, the option will not
be subject to the automatic Change in Control vesting provision set forth in
Section 11(a)(i) of the Incentive Plan or the Change in Control post-termination
exercise period provision set forth in Section 5(b)(i) of the Incentive Plan;
provided, however, that, if following a Change in Control the Employee's
employment is terminated by the Company for a reason other than due to death,
"Disability" or "Cause" or the Employee terminates employment for "Good Reason,"
the option will automatically vest in full regardless of the one year holding
period and remain exercisable for the remainder of the original term (ten years
and one day). For purposes of this Agreement, the following definitions shall
apply: "Cause" and "Good Reason" shall have the meanings given to such terms in
the Employment Agreement by and between Household International, Inc. and the
Employee dated as of November 14, 2002. "Disability" shall mean permanent and
total disability within the meaning of the Incentive Plan.

         5. Subject to the last sentence of Section 9 of the Incentive Plan, if
it is determined that the Employee or former Employee, while employed by the
Company or any subsidiary or otherwise associated with the Company or any
subsidiary as a consultant, advisor or in another similar capacity, engaged at
any time in any activity in competition with any activity of the Company or any
subsidiary or inimical, contrary or harmful to the interests of the Company or
any subsidiary including, but not limited to: (i) conduct related to the
Employee's position for which either criminal or civil penalties against the
Employee may be sought, (ii) violation of the Company's policies,
notwithstanding the Company's decision or inability to, or not to, terminate the
Employee for such violation, (iii) accepting employment with or serving as a
consultant, advisor or in any other capacity to an employer that is in
competition with or acting against the interests of the Company or any
subsidiary, including employing or recruiting any present employee of the
Company or any subsidiary for such competitor, (iv) disclosing or misusing any
confidential information or material concerning the Company or any subsidiary,
or (v) participating in a hostile takeover attempt of the Company, then the
Committee, in its sole discretion, may cancel any outstanding option at any
time.

         6. The Company shall not be required to issue or deliver any
certificate or certificates for shares of stock purchased upon the exercise of
the option herein granted prior to the listing of such shares on all stock
exchanges on which the Company's stock shall then be listed. Upon any exercise
of said option, the Company shall take the steps required for listing.

         7. Neither the Employee nor his personal representative shall have any
of the rights or privileges of a stockholder with respect to any shares subject
to this option unless and until certificates evidencing such shares shall have
been delivered.

         8. Notice to the Company shall be addressed to the Company in care of
the Shareholder Services Department at 2700 Sanders Road, Prospect Heights,
Illinois 60070 and notice to the Employee shall be addressed to him or her at
the address as set forth on the cover sheet of this Agreement, or at such other
address as either party may hereafter designate in writing to the other.

         9. Anything herein to the contrary notwithstanding (except as provided
in Section 4 with respect to Sections 5(b)(i) and 11(a)(i) of the Incentive
Plan), this Agreement shall be subject to amendment by the Company from time to
time to the extent permitted by the Incentive Plan and is subject to the
provisions of the Incentive Plan.

<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                                   ----------
                    NON-TAX QUALIFIED STOCK OPTION AGREEMENT
            FOR EXECUTIVES WITH EMPLOYMENT AGREEMENTS DATED 11/14/02

         THIS AGREEMENT, between HOUSEHOLD INTERNATIONAL, INC., a Delaware
corporation (the "Company"), and the employee referenced on the cover sheet to
this Agreement (the "Employee"), is made pursuant to the Household International
1996 Long-Term Executive Incentive Compensation Plan (the "Incentive Plan"). The
terms of this Agreement are as follows:

         1. The Company hereby grants to the Employee an option, for a period of
10 years and one day from the grant date, to purchase, on these terms and
conditions and also subject to the Incentive Plan, shares of the common stock of
the Company as set forth in the cover sheet to this Agreement.

         2. No shares may be purchased under this option for one year from the
grant date. After one year, this option may, unless sooner terminated under the
provisions hereof, be exercised in numbers of shares not to exceed 25 percent of
the aggregate number of shares under option on and after each of the first,
second, third and fourth anniversaries of the grant date, provided that 100% of
the shares in this option may be exercised (a) on the last day of employment in
the case of an Employee who is retirement-eligible under the terms of a pension
plan of the Company or a subsidiary, or (b) if so determined by the Compensation
Committee of the Board of Directors (the "Committee") during the Employee's
employment. An Employee may exercise all or a portion of a vested option during
the option term.

                  To exercise an option you must give the Company ten days
written notice of exercise specifying the number of shares to be purchased,
which must be a minimum of twenty-five (25) shares, and include payment for the
shares. Payment for the option may be made by cash or check to the order of the
Company, and also may be made with shares of common stock of the Company valued
at the then fair market value of such shares or by a combination of cash and
shares of common stock pursuant to such Committee or Board of Directors rules in
effect at the time the option is exercised. The Committee or Board of Directors
may, at any time, rescind the right to use common stock of the Company in
payment for shares purchased through the option.

         3. The option may not be transferred except by will or the laws of
descent and distribution. The option may be exercised during the lifetime of the
Employee only by the Employee and only while he or she is an employee of the
Company (or a subsidiary thereof) and shall have been continuously so employed
from the grant date, except that: (i) in the event of termination of employment
of the Employee and the Employee is retirement-eligible under the terms of a
pension plan of the Company or a subsidiary, the option may be exercised within
five years of the date of termination of employment; (ii) in the event of
termination of employment due to permanent and total disability of the Employee
and the Employee is not retirement-eligible under the terms of a pension plan of
the Company or a subsidiary, the option may be exercised within twelve months
following the date of such termination of employment; (iii) in the event of
death during employment, the option may be exercised by the executor,
administrator, or other personal representative of the Employee within five
years succeeding death if such Employee was retirement-eligible under the terms
of a pension plan of the Company or a subsidiary, or twelve months if such
Employee was not retirement-eligible under the terms of a pension plan of the
Company or a subsidiary; (iv) in the event of termination of employment other
than as set forth in subsections (i), (ii) or (iii) above, the option may be
exercised within three months following the date of termination, except for
termination for cause; (v) in the event of death of the Employee following
termination of employment, the option may be exercised by the executor,
administrator, or other personal representative of the Employee, notwithstanding
the time periods specified in (i), (ii), (iii) or (iv) above, within (a) twelve
months following death or (b) the remainder of the period in which the Employee
was entitled to exercise the option, whichever period is longer. If the
Committee determines that the termination is for cause, the option will not
under any circumstances be exercisable following termination of employment.
Notwithstanding

<PAGE>

anything herein to the contrary, the option may not be exercised pursuant to
this Section 3 after the expiration of the term of such option and may be
exercised only to the extent that the holder was entitled to exercise such
option on the date of termination of employment (taking into account any
accelerated vesting as set forth in this Agreement). The option will expire in
all events and for all purposes 10 years and one day from the grant date.

         4. Notwithstanding anything to the contrary contained in any Employment
Agreement, Employment Protection Agreement or similar agreement between the
Employee and the Company, as in effect on the date hereof, the option will not
be subject to the automatic Change in Control vesting provision set forth in
Section 11(a)(i) of the Incentive Plan or the Change in Control post-termination
exercise period provision set forth in Section 5(b)(i) of the Incentive Plan;
provided, however, that, if following a Change in Control the Employee's
employment is terminated by the Company for a reason other than due to death,
"Disability" or "Cause" or the Employee terminates employment for "Good Reason,"
the option will automatically vest in full regardless of the one year holding
period and remain exercisable for the remainder of the original term (ten years
and one day). For purposes of this Agreement, the following definitions shall
apply: "Cause" and "Good Reason" shall have the meanings given to such terms in
the Employment Agreement by and between Household International, Inc. and the
Employee dated as of November 14, 2002. "Disability" shall mean permanent and
total disability within the meaning of the Incentive Plan.

         5. Subject to the last sentence of Section 9 of the Incentive Plan, if
it is determined that the Employee or former Employee, while employed by the
Company or any subsidiary or otherwise associated with the Company or any
subsidiary as a consultant, advisor or in another similar capacity, engaged at
any time in any activity in competition with any activity of the Company or any
subsidiary or inimical, contrary or harmful to the interests of the Company or
any subsidiary including, but not limited to: (i) conduct related to the
Employee's position for which either criminal or civil penalties against the
Employee may be sought, (ii) violation of the Company's policies,
notwithstanding the Company's decision or inability to, or not to, terminate the
Employee for such violation, (iii) accepting employment with or serving as a
consultant, advisor or in any other capacity to an employer that is in
competition with or acting against the interests of the Company or any
subsidiary, including employing or recruiting any present employee of the
Company or any subsidiary for such competitor, (iv) disclosing or misusing any
confidential information or material concerning the Company or any subsidiary,
or (v) participating in a hostile takeover attempt of the Company, then the
Committee, in its sole discretion, may cancel any outstanding option at any
time.

         6. The Company shall not be required to issue or deliver any
certificate or certificates for shares of stock purchased upon the exercise of
the option herein granted prior to the listing of such shares on all stock
exchanges on which the Company's stock shall then be listed. Upon any exercise
of said option, the Company shall take the steps required for listing.

         7. Neither the Employee nor his personal representative shall have any
of the rights or privileges of a stockholder with respect to any shares subject
to this option unless and until certificates evidencing such shares shall have
been delivered.

         8. Notice to the Company shall be addressed to the Company in care of
the Shareholder Services Department at 2700 Sanders Road, Prospect Heights,
Illinois 60070 and notice to the Employee shall be addressed to him or her at
the address as set forth on the cover sheet of this Agreement, or at such other
address as either party may hereafter designate in writing to the other.

         9. Anything herein to the contrary notwithstanding (except as provided
in Section 4 with respect to Sections 5(b)(i) and 11(a)(i) of the Incentive
Plan), this Agreement shall be subject to amendment by the Company from time to
time to the extent permitted by the Incentive Plan and is subject to the
provisions of the Incentive Plan.

<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                                   ----------
                    NON-TAX QUALIFIED STOCK OPTION AGREEMENT

         THIS AGREEMENT, between HOUSEHOLD INTERNATIONAL, INC., a Delaware
corporation (the "Company"), and the employee referenced on the cover sheet to
this Agreement (the "Employee"), is made pursuant to the Household International
1996 Long-Term Executive Incentive Compensation Plan (the "Incentive Plan"). The
terms of this Agreement are as follows:

         1. The Company hereby grants to the Employee an option, for a period of
10 years and one day from the grant date, to purchase, on these terms and
conditions and also subject to the Incentive Plan, shares of the common stock of
the Company as set forth in the cover sheet to this Agreement.

         2. No shares may be purchased under this option for one year from the
grant date. After one year, this option may, unless sooner terminated under the
provisions hereof, be exercised in numbers of shares not to exceed 25 percent of
the aggregate number of shares under option on and after each of the first,
second, third and fourth anniversaries of the grant date, provided that 100% of
the shares in this option may be exercised (a) on the last day of employment in
the case of an Employee who is retirement-eligible under the terms of a pension
plan of the Company or a subsidiary, or (b) if so determined by the Compensation
Committee of the Board of Directors (the "Committee") during the Employee's
employment. An Employee may exercise all or a portion of a vested option during
the option term.

                  To exercise an option you must give the Company ten days
written notice of exercise specifying the number of shares to be purchased,
which must be a minimum of twenty-five (25) shares, and include payment for the
shares. Payment for the option may be made by cash or check to the order of the
Company, and also may be made with shares of common stock of the Company valued
at the then fair market value of such shares or by a combination of cash and
shares of common stock pursuant to such Committee or Board of Directors rules in
effect at the time the option is exercised. The Committee or Board of Directors
may, at any time, rescind the right to use common stock of the Company in
payment for shares purchased through the option.

         3. The option may not be transferred except by will or the laws of
descent and distribution. The option may be exercised during the lifetime of the
Employee only by the Employee and only while he or she is an employee of the
Company (or a subsidiary thereof) and shall have been continuously so employed
from the grant date, except that: (i) in the event of termination of employment
of the Employee and the Employee is retirement-eligible under the terms of a
pension plan of the Company or a subsidiary, the option may be exercised within
five years of the date of termination of employment; (ii) in the event of
termination of employment due to permanent and total disability of the Employee
and the Employee is not retirement-eligible under the terms of a pension plan of
the Company or a subsidiary, the option may be exercised within twelve months
following the date of such termination of employment; (iii) in the event of
death during employment, the option may be exercised by the executor,
administrator, or other personal representative of the Employee within five
years succeeding death if such Employee was retirement-eligible under the terms
of a pension plan of the Company or a subsidiary, or twelve months if such
Employee was not retirement-eligible under the terms of a pension plan of the
Company or a subsidiary; (iv) in the event of termination of employment other
than as set forth in subsections (i), (ii) or (iii) above, the option may be
exercised within three months following the date of termination, except for
termination for cause; (v) in the event of death of the Employee following
termination of employment, the option may be exercised by the executor,
administrator, or other personal representative of the Employee, notwithstanding
the time periods specified in (i), (ii), (iii) or (iv) above, within (a) twelve
months following death or (b) the remainder of the period in which the Employee
was entitled to exercise the option, whichever period is longer. If the
Committee determines that the termination is for cause, the option will not
under any circumstances be exercisable following termination of employment.
Notwithstanding anything herein to the contrary, the option may not be exercised
pursuant to this Section 3 after the

<PAGE>

expiration of the term of such option and may be exercised only to the extent
that the holder was entitled to exercise such option on the date of termination
of employment (taking into account any accelerated vesting as set forth in this
Agreement). The option will expire in all events and for all purposes 10 years
and one day from the grant date.

         4. Notwithstanding anything to the contrary contained in any Employment
Agreement, Employment Protection Agreement or similar agreement between the
Employee and the Company, as in effect on the date hereof, the option will not
be subject to the automatic Change in Control vesting provision set forth in
Section 11(a)(i) of the Incentive Plan or the Change in Control post-termination
exercise period provision set forth in Section 5(b)(i) of the Incentive Plan;
provided, however, that, if following a Change in Control the Employee's
employment is terminated by the Company for a reason other than due to death,
"Disability" or "Cause" or the Employee terminates employment for "Good Reason,
the option will automatically vest in full regardless of the one year holding
period and remain exercisable for the remainder of the original term (ten years
and one day). For purposes of this Agreement, the following definitions shall
apply: "Cause" shall mean (1) in the case of an Employee who is a party to an
employment, termination protection or similar agreement that defines "cause" (or
words of similar import), "cause" (or words of similar import) as defined in
such agreement, and (2) in the case of any other employee, willful and
deliberate misconduct, which is detrimental in a significant way to the
interests of the Company or any subsidiary thereof. "Disability" shall mean
permanent and total disability within the meaning of the Incentive Plan. "Good
Reason" shall mean, without the consent of the Employee, (1) any action by the
Company which results in a substantial diminution of the Employee's position,
authority, duties or responsibilities to a level demonstrably below those of
similarly compensated employees, (2) a reduction of the Employee's cash
compensation, (3) a substantial reduction in the Employee's benefits under any
compensation or benefit plan or program of the Company, except that the
Employee's benefits may be reduced in connection with similar reductions
uniformly applied with respect to all similarly situated employees, or (4) an
assignment to an office in a different geographic location unless the Company
makes reimbursement for all expenses incurred in connection with relocation and
appropriate increases for differences in cost of living; provided, however, that
"Good Reason" shall not include any isolated, insubstantial and inadvertent
action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by the Employee.

         5. Subject to the last sentence of Section 9 of the Incentive Plan, if
it is determined that the Employee or former Employee, while employed by the
Company or any subsidiary or otherwise associated with the Company or any
subsidiary as a consultant, advisor or in another similar capacity, engaged at
any time in any activity in competition with any activity of the Company or any
subsidiary or inimical, contrary or harmful to the interests of the Company or
any subsidiary including, but not limited to: (i) conduct related to the
Employee's position for which either criminal or civil penalties against the
Employee may be sought, (ii) violation of the Company's policies,
notwithstanding the Company's decision or inability to, or not to, terminate the
Employee for such violation, (iii) accepting employment with or serving as a
consultant, advisor or in any other capacity to an employer that is in
competition with or acting against the interests of the Company or any
subsidiary, including employing or recruiting any present employee of the
Company or any subsidiary for such competitor, (iv) disclosing or misusing any
confidential information or material concerning the Company or any subsidiary,
or (v) participating in a hostile takeover attempt of the Company, then the
Committee, in its sole discretion, may cancel any outstanding option at any
time.

         6. The Company shall not be required to issue or deliver any
certificate or certificates for shares of stock purchased upon the exercise of
the option herein granted prior to the listing of such shares on all stock
exchanges on which the Company's stock shall then be listed. Upon any exercise
of said option, the Company shall take the steps required for listing.

         7. Neither the Employee nor his personal representative shall have any
of the rights or privileges of a stockholder with respect to any shares subject
to this option unless and until certificates evidencing such shares shall have
been delivered.

         8. Notice to the Company shall be addressed to the Company in care of
the Shareholder Services Department at 2700 Sanders Road, Prospect Heights,
Illinois 60070 and notice to the Employee

<PAGE>

shall be addressed to him or her at the address as set forth on the cover sheet
of this Agreement, or at such other address as either party may hereafter
designate in writing to the other.

         9. Anything herein to the contrary notwithstanding (except as provided
in Section 4 with respect to Sections 5(b)(i) and 11(a)(i) of the Incentive
Plan), this Agreement shall be subject to amendment by the Company from time to
time to the extent permitted by the Incentive Plan and is subject to the
provisions of the Incentive Plan.

<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                                   ----------
                  U.K. NON-TAX QUALIFIED STOCK OPTION AGREEMENT

         THIS AGREEMENT, between HOUSEHOLD INTERNATIONAL, INC., a Delaware
corporation (the "Company"), and the employee referenced on the cover sheet to
this Agreement (the "Employee"), is made pursuant to the Household International
1996 Long-Term Executive Incentive Compensation Plan (the "Incentive Plan"). The
terms of this Agreement are as follows:

         1. The Company hereby grants to the Employee an option, for a period of
10 years from the grant date, to purchase, on these terms and conditions and
also subject to the Incentive Plan, shares of the common stock of the Company as
set forth in the cover sheet to this Agreement.

         2. No shares may be purchased under this option for one year from the
grant date. After one year, this option may, unless sooner terminated under the
provisions hereof, be exercised in numbers of shares not to exceed 25 percent of
the aggregate number of shares under option on and after each of the first,
second, third and fourth anniversaries of the grant date, provided that 100% of
the shares in this option may be exercised (a) on the last day of employment in
the case of an Employee who is retirement-eligible under the terms of a pension
plan of the Company or a subsidiary, or (b) if so determined by the Compensation
Committee of the Board of Directors (the "Committee") during the Employee's
employment. An Employee may exercise all or a portion of a vested option during
the option term.

                  To exercise an option you must give the Company ten days
written notice of exercise specifying the number of shares to be purchased,
which must be a minimum of twenty-five (25) shares, and include payment for the
shares. Payment for the option may be made by cash or check to the order of the
Company, and also may be made with shares of common stock of the Company valued
at the then fair market value of such shares or by a combination of cash and
shares of common stock pursuant to such Committee or Board of Directors rules in
effect at the time the option is exercised. The Committee or Board of Directors
may, at any time, rescind the right to use common stock of the Company in
payment for shares purchased through the option.

         3. The option may not be transferred except by will or the laws of
descent and distribution. The option may be exercised during the lifetime of the
Employee only by the Employee and only while he or she is an employee of the
Company (or a subsidiary thereof) and shall have been continuously so employed
from the grant date, except that: (i) in the event of termination of employment
of the Employee and the Employee is retirement-eligible under the terms of a
pension plan of the Company or a subsidiary, the option may be exercised within
five years of the date of termination of employment; (ii) in the event of
termination of employment due to permanent and total disability of the Employee
and the Employee is not retirement-eligible under the terms of a pension plan of
the Company or a subsidiary, the option may be exercised within twelve months
following the date of such termination of employment; (iii) in the event of
death during employment, the option may be exercised by the executor,
administrator, or other personal representative of the Employee within five
years succeeding death if such Employee was retirement-eligible under the terms
of a pension plan of the Company or a subsidiary, or twelve months if such
Employee was not retirement-eligible under the terms of a pension plan of the
Company or a subsidiary; (iv) in the event of termination of employment other
than as set forth in subsections (i), (ii) or (iii) above, the option may be
exercised within three months following the date of termination, except for
termination for cause; (v) in the event of death of the Employee following
termination of employment, the option may be exercised by the executor,
administrator, or other personal representative of the Employee, notwithstanding
the time periods specified in (i), (ii), (iii) or (iv) above, within a) twelve
months following death or b) the remainder of the period in which the Employee
was entitled to exercise the option, whichever period is longer. If the
Committee determines that the termination is for cause, the option will not
under any circumstances be exercisable following termination of employment.
Notwithstanding anything herein to the contrary, the option may not be exercised
pursuant to this Section after the

<PAGE>

expiration of the term of such option and may be exercised only to the extent
that the holder was entitled to exercise such option on the date of termination
of employment (taking into account any accelerated vesting as set forth in this
Agreement). The option will expire in all events and for all purposes 10 years
from the grant date.

         4. Notwithstanding anything to the contrary contained in any Employment
Agreement, Employment Protection Agreement or similar agreement between the
Employee and the Company, as in effect on the date hereof, the option will not
be subject to the automatic Change in Control vesting provision set forth in
Section 11(a)(i) of the Incentive Plan or the Change in Control post-termination
exercise period provision set forth in Section 5(b)(i) of the Incentive Plan;
provided, however, that, if following a Change in Control the Employee's
employment is terminated by the Company for a reason other than due to death,
"Disability" or "Cause" or the Employee terminates employment for "Good Reason,
" the option will automatically vest in full regardless of the one year holding
period and remain exercisable for the remainder of the original term (ten
years). For purposes of this Agreement, the following definitions shall apply:
"Cause" shall mean (1) in the case of an Employee who is a party to an
employment, termination protection or similar agreement that defines "cause" (or
words of similar import), "cause" (or words of similar import) as defined in
such agreement, and (2) in the case of any other employee, willful and
deliberate misconduct, which is detrimental in a significant way to the
interests of the Company or any subsidiary thereof. "Disability" shall mean
permanent and total disability within the meaning of the Incentive Plan. "Good
Reason" shall mean, without the consent of the Employee, (1) any action by the
Company which results in a substantial diminution of the Employee's position,
authority, duties or responsibilities to a level demonstrably below those of
similarly compensated employees, (2) a reduction of the Employee's cash
compensation, (3) a substantial reduction in the Employee's benefits under any
compensation or benefit plan or program of the Company, except that the
Employee's benefits may be reduced in connection with similar reductions
uniformly applied with respect to all similarly situated employees, or (4) an
assignment to an office in a different geographic location unless the Company
makes reimbursement for all expenses incurred in connection with relocation and
appropriate increases for differences in cost of living; provided, however, that
"Good Reason" shall not include any isolated, insubstantial and inadvertent
action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by the Employee.

         5. Subject to the last sentence of Section 9 of the Incentive Plan, if
it is determined that the Employee or former Employee, while employed by the
Company or any subsidiary or otherwise associated with the Company or any
subsidiary as a consultant, advisor or in another similar capacity, engaged at
any time in any activity in competition with any activity of the Company or any
subsidiary or inimical, contrary or harmful to the interests of the Company or
any subsidiary including, but not limited to: (i) conduct related to the
Employee's position for which either criminal or civil penalties against the
Employee may be sought, (ii) violation of the Company's policies,
notwithstanding the Company's decision or inability to, or not to, terminate the
Employee for such violation, (iii) accepting employment with or serving as a
consultant, advisor or in any other capacity to an employer that is in
competition with or acting against the interests of the Company or any
subsidiary, including employing or recruiting any present employee of the
Company or any subsidiary for such competitor, (iv) disclosing or misusing any
confidential information or material concerning the Company or any subsidiary,
or (v) participating in a hostile takeover attempt of the Company, then the
Committee, in its sole discretion, may cancel any outstanding option at any
time.

         6. The Company shall not be required to issue or deliver any
certificate or certificates for shares of stock purchased upon the exercise of
the option herein granted prior to the listing of such shares on all stock
exchanges on which the Company's stock shall then be listed. Upon any exercise
of said option, the Company shall take the steps required for listing.

         7. Neither the Employee nor his personal representative shall have any
of the rights or privileges of a stockholder with respect to any shares subject
to this option unless and until certificates evidencing such shares shall have
been delivered.

         8. Notice to the Company shall be addressed to the Company in care of
the Shareholder Services Department at 2700 Sanders Road, Prospect Heights,
Illinois 60070 and notice to the Employee

<PAGE>

shall be addressed to him or her at the address as set forth on the cover sheet
of this Agreement, or at such other address as either party may hereafter
designate in writing to the other.

         9. Anything herein to the contrary notwithstanding (except as provided
in Section 4 with respect to Sections 5(b)(i) and 11(a)(i) of the Incentive
Plan), this Agreement shall be subject to amendment by the Company from time to
time to the extent permitted by the Incentive Plan and is subject to the
provisions of the Incentive Plan.

<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                                   ----------
                        RESTRICTED STOCK RIGHTS AGREEMENT

         THIS AGREEMENT, between HOUSEHOLD INTERNATIONAL, INC., a Delaware
corporation (the "Company"), and the employee referenced on the cover sheet to
this Agreement (the "Employee"), is made pursuant to the Household International
1996 Long-Term Executive Incentive Compensation Plan (the "Incentive Plan"). The
terms of this Agreement are as follows:

         1. The Company hereby grants to the Employee Restricted Stock Rights
(the "RSRs"), which shall fully vest five (5) years from the date hereof (the
"Restricted Period"), pursuant to the terms and conditions set forth herein and
subject to the provisions set forth in the Incentive Plan. The RSRs entitle the
Employee to receive the number of shares of Common Stock of the Company as set
forth in the cover sheet to this Agreement.

         2. No shares may be issued under RSRs for one year from the date
hereof. After said one-year period, shares subject to RSRs will vest one-third
on each of the third, fourth and fifth anniversaries (the "Vesting Dates") from
the grant date. On each Vesting Date an Employee shall be entitled to receive
shares representing the vested RSRs, and the Company shall issue the appropriate
number of vested shares (rounded down to the nearest whole share) registered in
the name of the Employee or his or her estate or administrator, as deemed
appropriate by the Company, provided the Employee has satisfied all tax
obligations with respect to such shares as required herein. The unvested shares
subject to such RSRs shall be forfeited and all rights of a holder of such RSRs
and shares shall terminate without any payment of consideration by the Company
if the Employee fails to remain continuously as an Employee of the Company or
any subsidiary for the Restricted Period, except (i) in the case of an Employee
who is retirement-eligible under the terms of a pension plan of the Company or a
subsidiary, the Employee will receive either (1) the number of shares subject to
the RSR multiplied by a fraction (x) the numerator of which shall be the number
of full months between the date of grant of such RSR and the date of such
termination of employment, and (y) the denominator of which shall be the number
of full months in the Restricted Period; provided however, that any fractional
share shall not be awarded; and provided further, the Compensation Committee of
the Board of Directors (the "Committee"), in its sole discretion, may determine
that full vesting is appropriate under the circumstances or (2) 100% of the
shares subject to RSRs on his or her last day of employment if retirement occurs
on or after age 65, and (ii) in the event that the employment of a holder of
RSRs terminates by reason of death or permanent and total disability, such
holder shall be entitled to receive the number of shares subject to the RSR
multiplied by a fraction (x) the numerator of which shall be the number of full
months between the date of grant of such RSR and the date of such termination of
employment, and (y) the denominator of which shall be the number of full months
in the Restricted Period; provided however, that any fractional share shall not
be awarded. Any shares that the Employee is entitled to receive in accordance
with the preceding sentence will be reduced by any shares that the Employee has
already received because of vesting on the third, fourth and fifth anniversaries
of the grant date. An Employee shall not be deemed to have terminated his or her
period of continuous employment with the Company if he or she leaves the employ
of the Company or any subsidiary for immediate reemployment with the Company or
any subsidiary. A holder of RSRs whose employment terminates for reasons other
than those listed in this paragraph 2 (other than a change-in-control of the
Company) will forfeit his or her unvested rights under any outstanding RSRs.
This automatic forfeiture may be waived in whole or in part by the Committee in
its sole discretion.

         3. Notwithstanding anything to the contrary contained in any Employment
Agreement, Employment Protection Agreement or similar agreement as in effect on
the date hereof, the RSR granted under this Agreement will not be subject to the
automatic Change in Control vesting provision set forth in Section 11(a)(i) of
the Incentive Plan; provided, however, that, if following a Change in Control
the Employee's employment is terminated by the Company for a reason other than
due to death, disability or cause (each as defined in the Incentive Plan) or the
Employee terminates employment for "Good Reason"

<PAGE>

(as defined below), these RSRs will vest in full regardless of the one year
holding period. For purposes of this Agreement, "Good Reason" shall mean,
without the consent of the Employee, (1) any action by the Company which results
in a substantial diminution of the Employee's position, authority, duties or
responsibilities to a level demonstrably below those of similarly compensated
employees, (2) a reduction of the Employee's cash compensation, (3) a
substantial reduction in the Employee's benefits under any compensation or
benefit plan or program of the Company, except that the Employee's benefits may
be reduced in connection with similar reductions uniformly applied with respect
to all similarly situated employees, or (4) an assignment to an office in a
different geographic location unless the Company makes reimbursement for all
expenses incurred in connection with relocation and appropriate increases for
differences in cost of living; provided, however, that "Good Reason" shall not
include any isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Employee.

         4. Subject to the last sentence of Section 9 of the Incentive Plan, if
it is determined that the Employee or former Employee, while employed by the
Company or any subsidiary or otherwise associated with the Company or any
subsidiary as a consultant, advisor or in another similar capacity, engaged at
any time in any activity in competition with any activity of the Company or any
subsidiary or inimical, contrary or harmful to the interests of the Company or
any subsidiary including, but not limited to: (i) conduct related to the
Employee's position for which either criminal or civil penalties against the
Employee may be sought, (ii) violation of the Company's policies,
notwithstanding the Company's decision or inability to, or not to, terminate the
Employee for such violation, (iii) accepting employment with or serving as a
consultant, advisor or in any other capacity to an employer that is in
competition with or acting against the interests of the Company or any
subsidiary, including employing or recruiting any present employee of the
Company or any subsidiary for such competitor, (iv) disclosing or misusing any
confidential information or material concerning the Company or any subsidiary,
or (v) participating in a hostile takeover attempt of the Company, then the
Committee, in its sole discretion, may cancel any unexpired or unpaid RSR at any
time.

         5. The RSRs may not be transferred except by will or the laws of
descent and distribution.

         6. The holder of RSRs shall not be entitled to any of the rights of a
holder of the Common Stock with respect to the shares subject to such RSRs prior
to the issuance of such shares pursuant to the Plan. However, during the
Restricted Period, for each unvested share subject to an RSR, the Company will
pay the Employee as additional income, less applicable taxes, an amount in cash
equal to the cash dividend declared on a share of Common Stock of the Company
during the Restricted Period on or about the date the Company pays such dividend
to its stockholders of record.

         7. Any and all taxes required to be withheld by the Company as a result
of the issuance of any shares pursuant to the RSRs shall be the sole
responsibility of the Employee.

         8. Notice to the Company shall be addressed to the Company in care of
the Shareholder Services Department at 2700 Sanders Road, Prospect Heights,
Illinois 60070 and notice to the Employee shall be addressed to him or her at
the address as set forth on the cover sheet of this Agreement, or at such other
address as either party may hereafter designate in writing to the other.

         9. Anything herein to the contrary notwithstanding (except as provided
in paragraph 3 with respect to Section 11(a)(i) of the Incentive Plan), this
Agreement shall be subject to amendment by the Company from time to time to the
extent permitted by the Incentive Plan and is subject to the provisions of the
Incentive Plan.<PAGE>
                                                                   EXHIBIT 10.11

                                 FIRST AMENDMENT
                                       OF
                             HOUSEHOLD INTERNATIONAL
                    NON-QUALIFIED DEFERRED COMPENSATION PLAN
                           FOR RESTRICTED STOCK RIGHTS

                  WHEREAS, Household International, Inc. (the "Company")
maintains the Household International Non-Qualified Deferred Compensation Plan
for Restricted Stock Rights (the "Plan"); and

                  WHEREAS, amendment of the Plan is now considered desirable;

                  NOW, THEREFORE, pursuant to the power reserved to the
Compensation Committee under Section 16 of the Plan and a resolution adopted by
the Compensation Committee of the Company on September 10, 2002, the Plan is
hereby amended, effective as of September 10, 2002, by substituting the
following for Section 7 of the Plan:

                  "Section 7. Hypothetical Investment. Each deferred
         compensation account will be credited with hypothetical shares of
         Household stock on the date on which the Household Restricted Stock
         Rights otherwise would have vested. Unless the participant makes an
         election otherwise as outlined below, during the deferral period his
         deferred compensation account will be credited on each dividend payment
         date for the Company's Common Stock with additional hypothetical shares
         of Household stock determined by dividing the aggregate cash dividend
         which would have been paid if the existing hypothetical Household stock
         were actual shares of the Company's Common stock (the "Hypothetical
         Dividend") by the fair market value of the Company's Common Stock as of
         the dividend payment date, computed to four decimal places. For
         purposes of the Plan, the "fair market value" of one share of the
         Company's Common Stock shall be the average of the high and low sale
         prices for a share of such Common Stock for the respective
         determination date. At the time the election of deferral is made in
         accordance with Sections 5 and 6 of this Plan, the participant may
         irrevocably choose to receive in cash any future Hypothetical Dividends
         attributable to that deferral. In addition, a participant may make a
         one-time irrevocable acceleration election prior to October 1, 2002 to
         receive, in cash, Hypothetical Dividends attributable to hypothetical
         shares of Household stock credited to the participant's deferred
         compensation account pursuant to a deferral election made before
         September 1, 2002 ("Prior Deferrals"). This one-time election will
         apply only to Hypothetical Dividends payable on or after April 1, 2003
         with respect to such Prior Deferrals. Cash payments of any Hypothetical
         Dividends will be disbursed with the regular payroll processed
         following each dividend payment date on the Company's Common Stock,
         less the amount of any taxes required to be withheld by any federal,
         state or local government. If no election is made by the participant,
         then hypothetical shares attributable to the Hypothetical Dividends
         will be credited to the participant's deferred compensation account.
         There is no guarantee a participant's

<PAGE>

         deferred compensation account will increase in value; the account may
         decrease in value based on the performance of Household stock."

                                            HOUSEHOLD INTERNATIONAL, INC.

                                    By:     /s/ George A. Lorch
                                            -----------------------------
                                            George A. Lorch
                                            Chair, Compensation Committee

Dated:   September 10, 2002

ATTEST:

/s/ Kenneth H. Robin
--------------------
Kenneth H. Robin
Secretary

(CORPORATE SEAL)

                                       2
<PAGE>

                             HOUSEHOLD INTERNATIONAL

                    NON-QUALIFIED DEFERRED COMPENSATION PLAN
                           FOR RESTRICTED STOCK RIGHTS

         Section 1. Purpose. The purpose of this Plan is to provide certain
executives of Household International, Inc. (the "Company") and certain of its
direct and indirect subsidiaries (the Company and such subsidiaries being
referred to as the "Employers") the opportunity to defer receipt of compensation
and provide for future savings of compensation earned in connection with the
vesting of Household Restricted Stock Rights. The provision of such an
opportunity is designed to aid the Company in attracting and retaining as
executives persons whose abilities, experience and judgment can contribute to
the well-being of the Company.

         Section 2. Name, Effective Date. The effective date of this plan known
as the Household International Non-Qualified Deferred Compensation Plan for
Restricted Stock Rights (the "Plan") is September 11, 2001.

         Section 3. Eligibility. Any executive of the Employers who is a
participant in the 1998 Key Executive Bonus Plan and has outstanding Restricted
Stock Rights for Household International, Inc. Common Stock, $1.00 par value
("Household stock") is eligible to participate in this Plan.

         Section 4. Deferred Compensation Account. An unfunded deferred
compensation account shall be established for each person who elects to
participate in the Plan.

         Section 5. Amount of Deferral. In the calendar year prior to the
scheduled vesting of Household Restricted Stock Rights on a date at least six
months prior to the date the participant's Restricted Stock Rights are scheduled
to vest, the participant can make an irrevocable election to defer the right to
receive all or a portion of the stock that would otherwise be paid to the
participant upon the scheduled vesting of the Restricted Stock Rights. The
Household stock as to which an election is made will be credited to the
participant's deferred compensation account on the date such stock would
otherwise have been initially vested.

                                       3
<PAGE>

         Section 6. Election of Deferral. An election to defer the right to
receive stock under this Plan shall be made on forms provided by the
Compensation Committee of the Board of Directors of the Company (the
"Committee") for that purpose and shall be effective on the date indicated, but
not before the date filed with the Committee.

         If a participant has failed to select a deferred distribution date for
a deferral or if he terminates employment before such deferred distribution
date, then distribution of such deferred compensation account will be made as
soon as practicable in the calendar year following the date of the participant's
termination of employment. The earliest deferred distribution date specified by
the participant for any deferral under this Plan must be at least two years
after the calendar year in which the vesting of Restricted Stock Rights
otherwise would have occurred. The election shall be irrevocable upon receipt by
the Committee.

         Section 7. Hypothetical Investment. Each deferred compensation account
will be credited with hypothetical shares of Household stock on the date on
which the Household Restricted Stock Rights otherwise would have vested. During
the deferral period, the deferred compensation account will be credited on each
dividend payment date for the Company's Common Stock with additional
hypothetical shares of Household stock determined by dividing the aggregate cash
dividend which would have been paid if the existing Household stock were actual
shares of the Company's Common stock by the fair market value of the Company's
Common Stock as of the dividend payment date, computed to four decimal places.
For purposes of the Plan, the "fair market value" of one share of the Company's
Common Stock shall be the average of the high and low sale prices for a share of
such Common Stock for the respective determination date. There is no guarantee a
participant's deferred compensation account will increase in value; the account
may decrease in value based on the performance of Household stock.

         Section 8. Payment of Deferral. If a participant elected to defer any
year's compensation under this Plan to a specific date other than his or her
termination of employment, the value of such year's deferred compensation will
be payable in stock with only fractional shares paid in cash on the date
specified unless it is paid earlier due to termination of employment. The value
of a participant's deferred compensation account will be payable in stock with
only fractional

                                       4
<PAGE>

shares paid in cash as soon as practicable following the end of the year in
which a participant terminates employment unless an earlier date is specified by
the participant in his deferral election. All deferred amounts to be paid to a
participant pursuant to the Plan are to be paid in shares of Household stock
with the value of such shares being the fair market value of an equal number of
shares of Household stock on the date of payment.

         In the event that the participant becomes totally disabled, the
Committee, in its absolute discretion, may distribute all or a portion of the
participant's deferred compensation account according to a revised payment
schedule but it must still be paid in stock.

         Section 9. Withholding. Subject to the following sentence, there shall
be deducted from all deferrals and payments under this Plan the amount of any
taxes required to be withheld by any federal, state or local government unless
these amounts are paid in cash by the participant. However, for any taxes
required to be withheld by any federal, state or local government in connection
with a deferral, these amounts must be paid in cash immediately after the
vesting date and not by reducing the shares otherwise credited to the
participant's account. The participants and their beneficiaries, distributees,
and personal representatives will bear any and all federal, foreign, state,
local or other income or other taxes imposed on amounts deferred or paid under
this Plan.

         Section 10. Designation of Beneficiary. A participant may designate a
beneficiary or beneficiaries which shall be effective upon filing written notice
with the Committee on the form provided by the Committee for that purpose. If no
beneficiary is designated, the beneficiary will be the participant's estate. If
more than one beneficiary statement has been filed, the beneficiary or
beneficiaries designated in the statement bearing the most recent date will be
deemed the valid beneficiary or beneficiaries.

         Section 11. Death of Participant or Beneficiary. In the event of a
participant's death before he has received the full value of his deferred
compensation account, the then current value of the participant's deferred
compensation account shall be determined and such amount shall be paid to the
beneficiary or beneficiaries of the deceased participant as soon as practicable
thereafter in stock with only fractional shares paid in cash. If no designated
beneficiary has been named or survives the participant, the beneficiary will be
the participant's estate.

                                       5
<PAGE>

         Section 12. Participant's Rights Unsecured. The right of any
participant or beneficiary to receive payment under the provisions of the Plan
shall be an unsecured claim against the general assets of the Company, and any
successor company in the event of a merger, consolidation, reorganization or any
other event which causes the Company's assets or business to be acquired by
another company. No provisions contained in the Plan shall be construed to give
any participant or beneficiary at any time a security interest in the deferred
compensation account or any other assets of the Company. Upon deferral under
this Plan, a participant gives up his right to receive stock that otherwise
would have been issued as a consequence of vesting of Restricted Stock Rights
and receives, instead, the contractual right to an unfunded deferred
compensation account equal in value to the value of the stock that otherwise
would have been received.

         Section 13. Statement of Account. Statements will be sent to
participants following the end of each year as to the value of their deferred
compensation accounts as of December 31st of such year.

         Section 14. Assignability. No right to receive payments hereunder shall
be transferable or assignable by a participant or a beneficiary.

         Section 15. Administration of the Plan. The Plan shall be administered
by the Committee. The Committee shall conclusively interpret the provisions of
the Plan, decide all claims, and shall make all determinations under the Plan.
The Committee shall act by vote or written consent of a majority of its members.
The Committee may authorize the appointment of an agent to perform recordkeeping
and other administrative duties with respect to the Plan.

         Section 16. Amendment or Termination of Plan. This Plan may at any time
or from time to time be amended, modified or terminated by the Committee. No
amendment, modification or termination shall, without the consent of a
participant, adversely affect such participant's accruals on his prior
elections. Rights accrued prior to termination of the Plan will not be canceled
by termination of the Plan.

         Section 17. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois.

         Section 18. Payment of Certain Costs of the Participant. If a dispute
arises regarding the interpretation or enforcement of this Plan and the
participant (or, in the event of his death, his

                                       6
<PAGE>

beneficiary) obtains a final judgment in his favor from a court of competent
jurisdiction from which no appeal may be taken, whether because the time to do
so has expired or otherwise, or his claim is settled by the Company prior to the
rendering of such a judgment, all reasonable legal and other professional fees
and expenses incurred by the participant in contesting or disputing any such
claim or in seeking to obtain or enforce any right or benefit provided for in
this Plan or in otherwise pursuing his claim will be promptly paid by the
Company with interest thereon at the highest Illinois statutory rate for
interest on judgments against private parties from the date of payment thereof
by the participant to the date of reimbursement to him by the Company.

         Section 19. Securities Law. With respect to participants subject to
Section 16 of the Exchange Act, transactions under this Plan are intended to
comply with all applicable provisions of Rule 16b-3 or its successor under the
Securities Exchange Act of 1934. To the extent any provision of the Plan or
action by the Committee or its designee fails to so comply, it shall be deemed
null and void.

         Section 20. Change in Control. A "Change in Control " shall be deemed
to have occurred if:

         (1)   Any "person" (as defined in Section 13(d) and 14(d) of the
               Securities Exchange Act of 1934, as amended (the "Exchange
               Act")), excluding for this purpose the Company or any subsidiary
               of the Company, or any employee benefit plan of the Company, or
               any subsidiary of the Company, or any person or entity organized,
               appointed or established by the Company for or pursuant to the
               terms of such plan which acquires beneficial ownership of voting
               securities of the Company, is or becomes the "beneficial owner"
               (as defined in Rule 13d-3 under the Exchange Act) directly or
               indirectly of securities of the Company representing twenty
               percent (20%) or more of the combined voting power of the
               Company's then outstanding securities; provided, however, that no
               Change in Control shall be deemed to have occurred as the result
               of an acquisition of securities of the Company by the Company
               which, by reducing the number of voting securities outstanding,
               increases the direct or indirect beneficial ownership interest of
               any person to twenty percent (20%) or more of the combined voting
               power of the Company's then outstanding securities, but any
               subsequent

                                       7
<PAGE>

               increase in the direct or indirect beneficial ownership interest
               of such a person in the Company shall be deemed a Change in
               Control; and provided further that if the Board of Directors of
               the Company determines in good faith that a person who has become
               the beneficial owner directly or indirectly of securities of the
               Company representing twenty percent (20%) or more of the combined
               voting power of the Company's then outstanding securities has
               inadvertently reached that level of ownership interest, and if
               such person divests as promptly as practicable a sufficient
               amount of securities of the Company so that the person no longer
               has a direct or indirect beneficial ownership interest in twenty
               percent (20%) or more of the combined voting power of the
               Company's then outstanding securities, then no Change in Control
               shall be deemed to have occurred;

         (2)    During any period of two (2) consecutive years (not including
                any period prior to December 1, 1998) individuals who at the
                beginning of such two-year period constitute the Board of
                Directors of the Company and any new director or directors
                (except for any director designated by a person who has entered
                into an agreement with the Company to effect a transaction
                described in subparagraph (1), above, or subparagraph (3),
                below) whose election by the Board or nomination for election by
                the Company's stockholders was approved by a vote of at least
                two-thirds of the directors then still in office who either were
                directors at the beginning of the period or whose election or
                nomination for election was previously so approved, cease for
                any reason to constitute at least a majority of the Board (such
                individuals and any such new directors being referred to as the
                "Incumbent Board");

         (3)    Consummation of (x) an agreement for the sale or disposition of
                the Company or all or substantially all of the Company's assets,
                (y) a plan of merger or consolidation of the Company with any
                other corporation, or (z) a similar transaction or series of
                transactions involving the Company (any transaction described in
                parts (x) through (z) of this subparagraph (3) being referred to
                as a "Business Combination"), in each case unless after such a
                Business Combination (I) the stockholders of the Company
                immediately prior to the Business Combination continue to own,
                directly or

                                       8
<PAGE>

               indirectly, more than sixty percent (60%) of the combined voting
               power of the then outstanding voting securities entitled to vote
               generally in the election of directors of the new (or continued)
               entity (including, but not by way of limitation, an entity which
               as a result of such transaction owns the Company, or all or
               substantially all of the Company's former assets either directly
               or through one or more subsidiaries) immediately after such
               Business Combination, in substantially the same proportion as
               their ownership of the Company immediately prior to such Business
               Combination, (II) no person (excluding any entity resulting from
               such Business Combination or any employee benefit plan (or
               related trust) of the Company or of such entity resulting from
               such Business Combination) beneficially owns, directly or
               indirectly, twenty percent (20%) or more of the then combined
               voting power of the then outstanding voting securities of such
               entity, except to the extent that such ownership existed prior to
               the Business Combination, and (III) at least a majority of the
               members of the board of directors of the entity resulting from
               such Business Combination were members of the Incumbent Board at
               the time of the execution of the initial agreement, or of the
               action of the Board, providing for such Business Combination; or

         (4)   Approval by the stockholders of the Company of a complete
               liquidation or dissolution of the Company.

         Notwithstanding any other provision of the Plan, if a Change of Control
occurs, then the Company shall create a trust or take such other actions as are
appropriate to protect each participant's deferred compensation account.

                                       9

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