Document:

<PAGE>

                                                                    EXHIBIT 10.3

________________________________________________________________________________

                        RECEIVABLES PURCHASE AGREEMENT

                                    between

                         HOUSEHOLD BANK (NEVADA), N.A.

                                      and

                    HOUSEHOLD RECEIVABLES FUNDING, INC. III

                            Dated as of  [.], 2000

________________________________________________________________________________
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                       Page
<S>                                                                                                    <C>
ARTICLE I    DEFINITIONS...............................................................................   1
Section 1.01.  Definitions.............................................................................   1
Section 1.02.  Other Definitional Provisions...........................................................   4
ARTICLE II   PURCHASE AND CONVEYANCE OF RECEIVABLES....................................................   5
Section 2.01.  Purchase................................................................................   5
Section 2.02.  Addition of Aggregate Addition Accounts.................................................   6
Section 2.03.  Addition of New Accounts................................................................   7
Section 2.04   Representations and Warranties..........................................................   7
Section 2.05.  Delivery of Documents...................................................................   8
ARTICLE III  CONSIDERATION AND PAYMENT.................................................................   9
Section 3.01.  Purchase Price..........................................................................   9
Section 3.02.  Adjustments to Purchase Price...........................................................   9
ARTICLE IV   REPRESENTATIONS AND WARRANTIES............................................................  10
Section 4.01.  Representations and Warranties of the Bank Relating to the Bank.........................  10
Section 4.02.  Representations and Warranties of the Bank Relating to the Agreement and
               the Receivables.........................................................................  11
Section 4.03.  Representations and Warranties of HRF...................................................  12
ARTICLE V    COVENANTS.................................................................................  14
Section 5.01.  Covenants of the Bank...................................................................  14
ARTICLE VI   REPURCHASE OBLIGATION.....................................................................  16
Section 6.01.  Reassignment of Ineligible Receivables..................................................  16
Section 6.02.  Reassignment of Noteholders' Collateral in Trust Portfolio..............................  16
ARTICLE VII  CONDITIONS PRECEDENT......................................................................  17
Section 7.01.  Conditions to HRF's Obligations Regarding Initial Receivables...........................  17
Section 7.02.  Conditions Precedent to the Bank's Obligations..........................................  17
ARTICLE VIII TERM AND PURCHASE TERMINATION.............................................................  19
Section 8.01  Term.....................................................................................  19
Section 8.02. Purchase Termination.....................................................................  19
ARTICLE IX   MISCELLANEOUS PROVISIONS..................................................................  20
Section 9.01. Amendment................................................................................  20
Section 9.02. Governing Law............................................................................  20
Section 9.03. Notices..................................................................................  20
Section 9.04. Severability of Provisions...............................................................  20
Section 9.05. Assignment...............................................................................  20
</TABLE>

                                      -i-
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<S>                                                                                                     <C>
Section 9.06. Acknowledgement and Agreement of the Bank...............................................   21
Section 9.07. Further Assurances......................................................................   21
Section 9.08. No Waiver; Cumulative Remedies..........................................................   21
Section 9.09. Counterparts............................................................................   21
Section 9.10. Binding; Third-Party Beneficiaries......................................................   21
Section 9.11. Merger and Integration..................................................................   21
Section 9.12. Headings................................................................................   22
Section 9.13. Schedules and Exhibits..................................................................   22
Section 9.14. Survival of Representations and Warranties..............................................   22
Section 9.15. Nonpetition Covenant....................................................................   22
EXHIBIT A.............................................................................................  A-1
FORM OF SUPPLEMENTAL CONVEYANCE
Schedule I............................................................................................. I-1
LIST OF ACCOUNTS
</TABLE>

                                     -ii-
<PAGE>

          RECEIVABLES PURCHASE AGREEMENT, dated as of [.], 2000, by and between
HOUSEHOLD RECEIVABLES FUNDING, INC. III, a Delaware corporation ("HRF"), and
                                                                  ---
HOUSEHOLD BANK (NEVADA), N.A., a national banking association (the "Bank").
                                                                    ----

                             W I T N E S S E T H:

          WHEREAS, HRF desires to purchase, from time to time, certain
Receivables (hereinafter defined) arising under certain revolving credit
accounts of the Bank;

          WHEREAS, HRF may in the future desire to purchase, from time to time,
certain Receivables sold to the Bank by another Account Owner (hereinafter
defined) and arising under certain revolving credit accounts of such Account
Owner;

          WHEREAS, the Bank desires to sell from time to time and assign certain
Receivables to HRF upon the terms and conditions hereinafter set forth;

          WHEREAS, it is contemplated that the Receivables purchased hereunder
will be transferred by HRF to the Trust (hereinafter defined) in connection with
the issuance of certain Securities (hereinafter defined); and

          WHEREAS, the Bank agrees that all representations, warranties,
covenants and agreements made by the Bank herein with respect to the Accounts
(hereinafter defined) and Receivables shall also be for the benefit of the Owner
Trustee (hereinafter defined), the Indenture Trustee (hereinafter defined) and
all beneficiaries of the Trust, including the holders of the Securities.

          NOW, THEREFORE, it is hereby agreed by and between HRF and the Bank as
follows:

                                   ARTICLE I

                                  DEFINITIONS

          Section 1.01.  Definitions.  All capitalized terms used herein or in
                         -----------
any certificate, document, or Conveyance Paper 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, and (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, but shall
exclude (e) any Account that (x) after the Removal Date, the newly generated
Receivables in which shall not be assigned to HRF hereunder, (y) the right,
title and interest of HRF in the Receivables in which are reassigned to the Bank
pursuant to Section 6.01 or (z) the right, title and interest of the Trust in
the Receivables in which are assigned and transferred to the Servicer pursuant
to Section 3.03 of the Transfer and Servicing Agreement.

          "Account Owner" shall mean the Bank, or any other entity which is the
           -------------
issuer of the revolving credit relating to an Account pursuant to a Credit
Agreement and/or a seller of Receivables to HRF.

                                       1
<PAGE>

          "Additional Cut-Off Date" shall mean (a) with respect to Aggregate
           -----------------------
Addition Accounts, the date specified as such in the notice delivered with
respect thereto pursuant to Section 2.02, and (b) with respect to New Accounts,
the later of the dates on which such New Accounts are originated or designated
pursuant to Section 2.03.

          "Addition Date" shall mean (a) with respect to Aggregate Addition
           -------------
Accounts, the date from and after which such Aggregate Addition Accounts are to
be included as Accounts pursuant to Section 2.02 and (b) with respect to New
Accounts, the first Distribution Date following the calendar month in which such
New Accounts are originated.

          "Addition Notice Date" shall have the meaning specified in Section
           --------------------
2.02 of this Agreement.

          "Additional Account" shall mean each New Account and each Aggregate
           ------------------
Addition Account.

          "Aggregate Addition Account" shall mean each Eligible Account that is
           --------------------------
designated pursuant to Section 2.02 to be included as an Account and is
identified in the computer file or microfiche list delivered to HRF by the Bank
pursuant to Sections 2.01 and 2.05.

          "Agreement" shall mean this Receivables Purchase Agreement and all
           ---------
amendments hereof and supplements hereto.

          "Bank" shall mean Household Bank (Nevada), N.A., a national banking
           ----
association, and its successors and permitted assigns.

          "Closing Date" shall mean [.], 2000.
           ------------

          "Conveyance" shall have the meaning specified in subsection 2.01(a).
           ----------

          "Conveyance Papers" shall have the meaning specified in subsection
           -----------------
4.01(c).

          "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.

          "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.

          "HRF" shall mean Household Receivables Funding, Inc. III, a Delaware
           ---
corporation, and its permitted successors and assigns.

          "Indenture" shall mean the Master Indenture between the Trust and
           ---------
Wells Fargo Bank Minnesota, N.A., as Indenture Trustee, dated as of [.], 2000,
as supplemented by Indenture Supplements applicable to any Series that may be
issued from time to time.

                                       2
<PAGE>

          "Indenture Supplement" shall mean the indenture supplement pursuant to
           --------------------
which a Series is issued.

          "Indenture Trustee" shall mean Wells Fargo Bank Minnesota, N.A. in its
           -----------------
capacity as indenture trustee, or any successor indenture trustee.

          "Initial Account" shall mean any Account designated as an "Account"
           ---------------
hereunder and as an "Account" under the Transfer and Servicing Agreement on the
Closing Date.

          "Initial Cut-Off Date" shall mean the close of business on [.], 2000.
           --------------------

          "Insolvency Event" shall have the meaning specified in Section 8.02.
           ----------------

          "New Account" shall mean each MasterCard(R) and VISA(R) consumer
           -----------
revolving credit card account established pursuant to a Credit Agreement, which
account is designated pursuant to Section 2.03 to be included as an Account and
is identified in the computer file or microfiche list delivered to HRF by the
Bank pursuant to Sections 2.01 and 2.05.

          "New Principal Receivables" shall have the meaning set forth in
           -------------------------
Section 3.01.

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

          "Principal Receivables" shall mean all Receivables other than Finance
           ---------------------
Charge and Administrative Receivables.

          "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.  Receivables that become Defaulted Receivables will cease to be
included as Receivables as of the day on which they become Defaulted
Receivables.  Unless the context otherwise requires (whether or not there is a
specific reference to the underlying receivable), any reference in this
Agreement or any Supplemental Conveyance to a Receivable (including any
Principal Receivable, Finance Charge and Administration Receivable or Defaulted
Receivable) and any Collections thereon or other amounts recoverable with
respect thereto shall refer to only the fractional undivided interest that is
transferred from an Account Owner to the Bank in the amounts paid or payable by
Obligors on the Accounts, which fractional interest may be less than a 100%
undivided interest therein.  Any reference in this Agreement to the "underlying
receivable" with respect to a Receivable shall refer to the receivable in which
such Receivable represents an undivided interest.

          "Removed Account" shall mean an Account hereunder that is a "Removed
           ---------------
Account" (as such term is defined in the Transfer and Servicing Agreement) that
is designated for removal pursuant to Section 2.10 of the Transfer and Servicing
Agreement.

                                       3
<PAGE>

          "Securities" shall mean any one of the Notes (as such term is defined
           ----------
in the Indenture), the Transferor Certificates or the Ownership Interest
Certificate (as such term is defined in the Trust Agreement).

          "Supplemental Conveyance" shall have the meaning set forth in Section
           -----------------------
2.05.

          "Transfer and Servicing Agreement" shall mean the Transfer and
           --------------------------------
Servicing Agreement, dated as of [.], 2000, among the Household Finance
Corporation, as Servicer, HRF, as Transferor, and the Trust, and all amendments
and supplements thereto.

          "Trust" shall mean the trust created by the Trust Agreement.
           -----

          "Trust Agreement" shall mean the Household Credit Card Master Note
           ---------------
Trust I Trust Agreement, dated as of [.], 2000, between HRF, as Transferor, and
Wilmington Trust Company, as Owner Trustee.

          Section 1.02.  Other Definitional Provisions.
                         -----------------------------

          All terms defined in this Agreement shall have the defined meanings
when used in any certificate, other document, or Conveyance Paper 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 or any Conveyance Paper 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 determinations of the principal or finance charge balance of
Receivables, and of any collections thereof, shall be made in accordance with
the Transfer and Servicing Agreement and the Indenture.

          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.

                              [END OF ARTICLE I]

                                       4
<PAGE>

                                  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 HRF (collectively, the
"Conveyance"), without recourse except as provided herein, all its right, title
 ----------
and interest in, to and under (i) the Receivables existing at the close of
business on the Closing Date, in the case of Receivables arising in the Initial
Accounts, and on each Addition Date, in the case of Receivables arising in the
Additional Accounts, and in each case thereafter created from time to time until
the termination of this Agreement pursuant to Article VIII hereof and all monies
due and or to become due and all amounts received with respect thereto and all
proceeds (including, without limitation, "proceeds" as defined in the UCC)
thereof and (ii) the right to receive Interchange and Recoveries with respect to
such Receivables (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 now existing and hereafter created, 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
Purchased Assets from the Bank to HRF, (ii) that such financing statements shall
name the Bank, as seller, and HRF, as purchaser, of the Receivables and (iii) to
deliver a file-stamped copy of such financing statements or other evidence of
such filings (excluding such continuation statements, which shall be delivered
as filed) to HRF as soon as is practicable after filing.

          (c)  In connection with such Conveyance, the Bank further agrees that
it will, at its own expense, (i) 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 Removal Date, in the case of Removed
Accounts, indicate in its computer files that, in the case of the Initial
Accounts or the Additional Accounts, Receivables created in connection with such
Accounts have been conveyed to HRF in accordance with this Agreement and have
been conveyed by HRF to the Trust pursuant to the Transfer and Servicing
Agreement and have been pledged by the Trust to the Indenture Trustee pursuant
to the Indenture for the benefit of the Noteholders by including (or deleting,
in the case of newly originated Receivables in Removed Accounts) in such
computer files the code that identifies each such Account [and (ii) on or prior
to (A) the Closing Date, in the case of the Initial Accounts, (B) the date that
is five Business Days after the applicable Addition Date, in the case of
designation of Aggregate Addition Accounts, (C) the date that is 30 days after
the applicable Addition Date, in the case of New Accounts, and (D) the date that
is five Business Days after the applicable Removal Date, in the case of Removed
Accounts, to deliver to HRF a computer file or microfiche list containing a true
and complete list of all such Accounts specifying for each such Account, as of
the Initial Cut-Off Date, in the case of the Initial Accounts, the applicable
Addition Cut-off Date, in the case of Additional Accounts, and the applicable
Removal Date, in the case of Removed 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
Removed Accounts, shall be marked as Schedule I to this Agreement, shall be
                                     ----------
delivered to HRF, and is hereby incorporated into and made a part of this
Agreement.  The Bank further agrees not to alter the code referenced in clause
(i) of this paragraph with respect to any Account during the term of this
Agreement unless and until such Account becomes a Removed Account.]

                                       5
<PAGE>

          (d)  The parties hereto intend that the conveyance of the Bank's
right, title and interest in and to the Receivables shall constitute an absolute
sale, conveying good title free and clear of any liens, claims, encumbrances or
rights of others from the Bank to HRF. It is the intention of the parties hereto
that the arrangements with respect to the Receivables shall constitute a
purchase and sale of such Receivables and not a loan. In the event, however,
that it were to be determined that the transactions evidenced hereby constitute
a loan and not a [contribution to capital or 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 HRF 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 rights of HRF hereunder and the obligations of the Bank hereunder.

          Section 2.02.  Addition of Aggregate Addition Accounts.
                         ---------------------------------------

          (a)  If, from time to time, HRF becomes obligated to designate
Aggregate Addition 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 HRF 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 the Addition Date, designate sufficient Eligible Accounts to be
included as Additional Accounts so that after the inclusion thereof HRF will be
in compliance with the requirements of said subsection 2.09(a).  Additionally,
subject to subsections 2.09(b) and (c) of the Transfer and Servicing Agreement
and subsection 2.02(b), from time to time Eligible Accounts may be designated to
be included as Aggregate Addition Accounts, upon the mutual agreement of HRF and
the Bank.  In either event, the Bank shall have sole responsibility for
selecting the Aggregate Addition Accounts.

          (b)  On the Addition Date with respect to any designation of Aggregate
Addition Accounts, HRF shall purchase the Bank's right, title and interest in,
to and under the Receivables in Aggregate Addition Accounts (and such Aggregate
Addition Accounts shall be deemed to be Accounts for purposes of this
Agreement), subject to the satisfaction of the following conditions:

               (i)   any Aggregate Addition Accounts shall all be Eligible
     Accounts;

               (ii)  the Bank shall have delivered to HRF copies of UCC-1
     financing statements covering such Aggregate Addition Accounts, if
     necessary to perfect HRF's undivided interest in the Receivables arising
     therein;

               (iii) to the extent required of HRF by Section 2.09(c) of the
     Transfer and Servicing Agreement, the Bank shall have deposited in the
     Collection Account (as such term is defined in the Indenture) all
     Collections with respect to such Aggregate Addition Accounts since the
     Addition Cut-Off Date;

               (iv)  as of each of the Addition Cut-Off Date and the Addition
     Date, no Insolvency Event with respect to the Bank or other Account Owner,
     as the case may be, shall have occurred nor shall the transfer of the
     Receivables arising in the Aggregate Addition Accounts to HRF have been
     made in contemplation of the occurrence thereof;

               (v)   solely with respect to Aggregate Addition Accounts
     designated pursuant to the second sentence of subsection 2.02(a), the
     Rating Agency Condition shall have been satisfied;

                                       6
<PAGE>

               (vi)  the Bank shall have delivered to HRF an Officer's
     Certificate, dated the Addition Date, confirming, to the extent applicable,
     the items set forth in clauses (i) through (v) above; and

               (vii) the transfer of the Receivables arising in the Aggregate
     Addition Accounts to HRF and by HRF to the Trust will not result in an
     Adverse Effect and, in the case of Aggregate Addition Accounts, the Bank
     shall have delivered to HRF an Officer's Certificate, dated the Addition
     Date, stating that the Bank reasonably believes that the addition of the
     Receivables arising in the Aggregate Addition Accounts to HRF and by HRF to
     the Trust will not have an Adverse Effect.

          Section 2.03.  Addition of New Accounts.
                         ------------------------

          (a)  Upon the mutual agreement of HRF and the Bank, subject to
compliance by HRF with the conditions specified in subsections 2.09(d) and (e)
of the Transfer and Servicing Agreement and compliance by the Bank with
subsection 2.03(b), the Bank may designate newly originated Eligible Accounts to
be included as New Accounts.  Upon such designation, such New Accounts shall be
deemed to be Accounts hereunder.  The Bank shall take all actions necessary to
comply, or to enable HRF to comply, with the requirements of Section 2.09 of the
Transfer and Servicing Agreement and shall cooperate with HRF to enable it to
perform with respect to the Receivables in such New Accounts all actions
specified in subsections 2.09(d) and (e) of the Transfer and Servicing
Agreement.

          (b)  On the Addition Date with respect to any New Accounts, HRF shall
purchase the Bank's right, title and interest in, to and under the Receivables
in New Accounts (and such New Accounts shall be deemed to be Accounts for
purposes of this Agreement) as of the close of business on the applicable
Addition Cut-Off Date, subject to the satisfaction of the following conditions:

               (i)   the New Accounts shall all be Eligible Accounts;

               (ii)  the Bank shall have delivered to HRF copies of UCC-1
     financing statements covering such New Accounts, if necessary to perfect
     HRF's interest in the Receivables arising therein;

               (iii) to the extent required of HRF 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 New Accounts since
     the Addition Cut-Off Date;

               (iv)  as of each of the Addition Cut-Off Date and the Addition
     Date, no Insolvency Event with respect to the Bank or other Account Owner,
     as applicable, shall have occurred nor shall the transfer of the
     Receivables arising in the New Accounts to HRF have been made in
     contemplation of the occurrence thereof; and

               (v)   the transfer of the Receivables arising in the New Accounts
     to HRF and by HRF to the Trust will not result in the occurrence of an
     Amortization Event or a Reinvestment Event.

          Section 2.04  Representations and Warranties.  The Bank hereby
                        ------------------------------
represents and warrants to HRF as of the related Addition Date as to the matters
set forth in subsections 2.02(b)(ii) and 2.03(b)(ii) above and that, in the case
of Additional Accounts, the list delivered pursuant to Section 2.05 below is, as
of the applicable Addition Cut-Off Date, true and complete in all material
respects.

                                       7
<PAGE>

          Section 2.05.  Delivery of Documents.  In the case of the designation
                         ---------------------
of Additional Accounts, the Bank shall deliver to HRF (i) the computer file or
microfiche list required to be delivered pursuant to Section 2.01 with respect
                                                     ------------
to such Additional Accounts on the date such file or list is required to be
delivered pursuant to Section 2.01 (the "Document Delivery Date") and (ii) a
                                         ----------------------
duly executed, written assignment (including an acceptance by HRF),
substantially in the form of Exhibit A (the "Supplemental Conveyance"), on the
                             ---------       -----------------------
Document Delivery Date.  In addition, in the case of the designation of New
Accounts, the Bank shall deliver to HRF on the Document Delivery Date an
Officer's Certificate confirming, to the extent applicable, the items set forth
in clause (i) through (v) of subsection 2.03(b) above.

                              [END OF ARTICLE II]

                                       8
<PAGE>

                                  ARTICLE III

                           CONSIDERATION AND PAYMENT

          Section 3.01.  Purchase Price.
                         --------------

          (a)  The "Purchase Price" for the Receivables in the Initial Accounts
                    --------------
as of the Initial Cut-Off Date conveyed to HRF 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 Initial
Cut-Off Date, plus the present value of anticipated excess spread, including
Interchange computed by taking into account factors such as historical losses
(and discounted to take into account any uncertainty as to future performance
matching historical performance), servicing fees, delinquencies and paydown
rates, yield and  such other factors as the Bank and HRF mutually agree will
result in a Purchase Price determined to be the fair market value of such
Receivables.  This computation of initial purchase price should assume no
reinvestment in new Receivables.  The Purchase Price for the Receivables
(including Receivables in Additional Accounts) to be conveyed to HRF under this
Agreement which come into existence after the Closing Date, shall be payable on
the Distribution Date following the Due Period in which such Receivables are
conveyed by the Bank to HRF 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, including Interchange computed
by taking into account factors such as historical losses (and discounted to take
into account any uncertainty as to future performance matching historical
performance), servicing fees, delinquencies and paydown rates, yield and  such
other factors as the Bank and HRF mutually agree will result in a Purchase Price
determined to be the fair market value of such New Principal Receivables.

          (b)  The Purchase Price to be paid by HRF on the Closing Date and on
each Distribution Date following a Due Period during which New Principal
Receivables are conveyed to HRF shall be paid in cash.

          Section 3.02.  Adjustments to Purchase Price.  The Purchase Price
                         -----------------------------
shall be adjusted on each Distribution Date (a "Credit Adjustment") with respect
                                                -----------------
to any Receivable previously conveyed to HRF by the Bank which has since been
reversed by the Bank or the Servicer 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 or due to
the occurrence of any other event referred to in Section 3.09 of the Transfer
and Servicing Agreement.  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
Distribution 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 Distribution Date, the Bank shall pay to HRF an
amount equal to the amount by which the Purchase Price minus the Credit
Adjustment would be reduced below zero.

                             [END OF ARTICLE III]

                                       9
<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, HRF as
--------
of the Closing Date and on each Addition Date, that:

          (a)  Organization and Good Standing.  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)  Due Qualification.  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, HRF or the Trust and (ii) have a material
adverse effect on the Noteholders.

          (c)  Due Authorization.  The execution, delivery and performance of
               -----------------
this Agreement and any other document or instrument delivered pursuant hereto,
including any Supplemental Conveyance (such other documents or instruments,
collectively, the "Conveyance Papers"), and the consummation of the transactions
                   -----------------
provided for in this Agreement and the Conveyance Papers have been duly
authorized by the Bank by all necessary corporate action on the part of the
Bank.

          (d)  No Conflict.  The execution and delivery of this Agreement and
               -----------
the Conveyance Papers by the Bank, the performance of the transactions
contemplated by this Agreement and the Conveyance Papers, and the fulfillment of
the terms of this Agreement and the Conveyance Papers 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)  No Violation.  The execution, delivery and performance of this
               ------------
Agreement and the Conveyance Papers 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)  No Proceedings.  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
or the Conveyance Papers, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Agreement or the Conveyance Papers, (iii)
seeking any determination or ruling that, in the reasonable judgment of the
Bank, would materially and adversely affect the performance by the Bank of its
obligations under this Agreement or the Conveyance Papers, (iv) seeking any
determination or ruling that would materially and adversely affect the validity
or enforceability of this Agreement or the Conveyance Papers or (v) seeking to
affect adversely the income tax attributes of the Trust under the United States
Federal or Delaware income tax systems.

          (g)  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 the Bank in connection with the execution and
delivery by the Bank of this Agreement and the Conveyance Papers

                                      10
<PAGE>

and the performance of the transactions contemplated by this Agreement or the
Conveyance Papers by the Bank have been duly obtained, effected or given and are
in full force and effect.

          The representations and warranties set forth in this Section 4.01
shall survive the transfer and assignment of the Receivables to HRF.  Upon
discovery by the Bank or HRF 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 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 HRF as of the date of this Agreement, as of the Closing Date and,
with respect to Additional Accounts, as of the related Addition Date that:

               (i)   this Agreement and, in the case of Additional Accounts, the
     related Supplemental Conveyance, each 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 Initial Cut-Off Date, and as of the related
     Addition Cut-Off Date with respect to Additional Accounts, Schedule I to
                                                                ----------
     this Agreement, as supplemented to such date, is an accurate and complete
     listing in all material respects of all the Accounts as of the Initial Cut-
     Off Date or such Addition Cut-Off Date, as the case may be, and the
     information contained therein with respect to the identity of such Accounts
     and the Receivables existing thereunder is true and correct in all material
     respects as of the Initial Cut-Off Date or such applicable Addition Cut-Off
     Date, as the case may be, and as of the Initial Cut-Off Date, the aggregate
     amount of Receivables in all the Initial Accounts was $[.], of which $[.]
     were Principal Receivables;

               (iii) each Receivable has been conveyed to HRF free and clear of
     any Lien and each underlying receivable is free and clear of all Liens;

               (iv)  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 Receivables to HRF have been duly obtained, effected or given
     and are in full force and effect;

               (v)   this Agreement or, in the case of Additional Accounts, the
     related Supplemental Conveyance constitutes a valid sale, transfer and
     assignment to HRF of all right, title and interest of the Bank in the
     Receivables and the proceeds thereof and the Interchange payable pursuant
     to this Agreement and the Recoveries payable pursuant to this Agreement;

               (vi)  on the Initial Cut-Off Date, each Account is an Eligible
     Account and, in the case of Additional Accounts, on the Addition Cut-Off
     Date, each related Additional Account is an Eligible Account;

                                      11
<PAGE>

               (vii)  on the Initial Cut-Off Date, each Receivable then existing
     60is an Eligible Receivable, and in the case of Additional Accounts, on the
     applicable Addition Cut-Off Date, each Receivable generated thereunder is
     an Eligible Receivable;

               (viii) as of the date of the creation of any new Receivable,
     such Receivable is an Eligible Receivable; and

               (ix)   no selection procedures believed by the Bank to be
     materially adverse to the interests of HRF or the Noteholders have been
     used in selecting such Accounts.

          (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 HRF. Upon discovery by either the Bank or HRF 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 the
Trustee within three Business Days following such discovery; provided that the
failure to give notice within three Business Days does not preclude subsequent
notice. The Bank hereby acknowledges that HRF intends to rely on the
representations hereunder in connection with representations made by HRF to
secured parties, assignees or subsequent transferees including but not limited
to transfers made by HRF to the Trust pursuant to the Transfer and Servicing
Agreement and by the Trust to the Indenture Trustee pursuant to the Indenture
and that the Owner Trustee and the Indenture Trustee may enforce such
representations directly against the Bank.

          Section 4.03.  Representations and Warranties of HRF.  As of the
                         -------------------------------------
Closing Date, HRF hereby represents and warrants to, and agrees with, the Bank
that:

          (a)  Organization and Good Standing.  HRF 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 Conveyance Papers and the consummation of the transactions provided for
in this Agreement and the Conveyance Papers have been duly authorized by HRF by
all necessary corporate action on the part of HRF.

          (c)  No Conflict.  The execution and delivery of this Agreement and
               -----------
the Conveyance Papers by HRF, the performance of the transactions contemplated
by this Agreement and the Conveyance Papers, and the fulfillment of the terms of
this Agreement and the Conveyance Papers applicable to HRF, 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 HRF 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 and the Conveyance Papers by HRF and the fulfillment of the terms
contemplated herein and therein applicable to HRF will not conflict with or
violate any Requirements of Law applicable to HRF.

          (e)  No Proceedings.  There are no proceedings or investigations
               --------------
pending or, to the best knowledge of HRF, threatened against HRF, before any
court, regulatory body, administrative agency, or other tribunal or governmental
instrumentality (i) asserting the invalidity of this Agreement or the Conveyance
Papers, (ii) seeking to prevent the consummation of any of the transactions
contemplated

                                      12
<PAGE>

by this Agreement or the Conveyance Papers, (iii) seeking any determination or
ruling that, in the reasonable judgment of HRF, would materially and adversely
affect the performance by HRF of its obligations under this Agreement or the
Conveyance Papers or (iv) seeking any determination or ruling that would
materially and adversely affect the validity or enforceability of this Agreement
or the Conveyance Papers.

          (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 HRF in connection with the execution and
delivery by HRF of this Agreement and the Conveyance Papers and the performance
of the transactions contemplated by this Agreement and the Conveyance Papers
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 HRF.  Upon discovery by HRF
or the Bank of a breach of any of the foregoing representations and warranties,
the party discovering such breach shall give prompt written notice to the other
party.

                              [END OF ARTICLE IV]

                                      13
<PAGE>

                                   ARTICLE V

                                   COVENANTS

          Section 5.01.  Covenants of the Bank.  The Bank hereby covenants and
                         ---------------------
agrees with HRF 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 (or underlying receivable) to be evidenced by
any instrument (as defined in the UCC) and if any Receivable (or underlying
receivable) is so evidenced as a result of any action by the Bank it shall be
deemed to be an ineligible Receivable in accordance with Section 6.01(a) and
shall be reassigned to the Bank in accordance with Section 6.01(b)

          (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 HRF's ownership of the Receivables or grant,
create, incur, assume or suffer to exist any Lien on, any Receivable (or the
underlying 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 HRF 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 HRF 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 HRF, after the date of such inability, all amounts
in the manner by which HRF will allocate and pay to the Trust after such
inability by HRF pursuant to Section 2.11 of the Transfer and Servicing
Agreement.

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

          (e)  Notice of Liens.  The Bank shall notify HRF promptly after
               ---------------
becoming aware of any Lien on any Receivable (or on the underlying receivable)
other than the conveyances hereunder, under the Transfer and Servicing Agreement
and under the Indenture.

          (f)  Interchange.  Not later than 1:00 p.m., New York City time, on
               -----------
each Transfer Date, the Bank shall deposit into the Collection Account, in
immediately available funds, (i) the amount of Interchange to be included as
Collections of Finance Charge and Administrative Receivables with respect to the
preceding Due Period or (ii) if at any time the Bank cannot identify the amount
of such Interchange, the amount reasonably estimated by the Bank as the amount
of such Interchange.

          (g)  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 HRF.

          (h)  Periodic Rate Finance Charges.  (i) Except (A) as otherwise
               -----------------------------
required by any Requirements of Law or (B) as is deemed by the Bank or other
Account Owner, as the case may be, to be necessary in order for it to maintain
its credit card business or a program operated by such credit card business on a
competitive basis based on a good faith assessment by it of the nature of the
competition

                                      14
<PAGE>

with respect to the credit card business or such program, it shall not at any
time take any action which would have the effect of reducing the Portfolio Yield
to a level that could be reasonably expected to cause any Series to experience
any Amortization Event, Reinvestment Event or Event of Default based on the
insufficiency of the Portfolio Yield or any similar test and (ii) except as
otherwise required by any Requirements of Law, it shall not take any action
which would have the effect of reducing the Portfolio Yield to be less than the
highest Average Rate for any Group.

          (i)  Credit Agreements and Guidelines.  Subject to compliance with all
               --------------------------------
Requirements of Law and paragraph (h) above, the Bank or other Account Owner, as
the case may be, may change the terms and provisions of the applicable Credit
Agreements (including the Periodic Rate Finance Charges to be assessed thereon),
and the Servicer, the Bank or any other Account Owner, as the case may be, may
change the applicable Credit Guidelines in any respect (including the
calculation of the amount or the timing of charge-offs).   Notwithstanding the
above, unless required by Requirements of Law or as permitted by paragraph (h)
above, the Bank or other Account Owner, as the case may be, will not take any
action unless (i) at the time of such action, the Bank or other Account Owner,
as the case may be, reasonably believes that such action will not cause an
Amortization Event, Reinvestment Event or Event of Default to occur, and (ii)
such change is made applicable to the comparable segment of the revolving credit
card accounts owned by the Bank or other Account Owner 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 or other Account Owner, as the
case may be, and an unrelated third party or by the terms of the Credit
Agreements.

                              [END OF ARTICLE V]

                                      15
<PAGE>

                                  ARTICLE VI

                             REPURCHASE OBLIGATION

          Section 6.01.  Reassignment of Ineligible Receivables.
                         --------------------------------------

          (a)  In the event any representation or warranty under Section
4.02(a)(ii), (iii), (iv), (vi), (vii) or (viii) is not true and correct in any
material respect as of the date specified therein with respect to any Receivable
or the related Account and as a result of such breach HRF is required to accept
reassignment of Ineligible Receivables previously sold by the Bank to HRF
pursuant to Section 2.05(a) of the Transfer and Servicing Agreement, the Bank
shall accept reassignment of HRF's interest in such Ineligible Receivables on
the terms and conditions set forth in Section 6.01(b).

          (b)  The Bank shall accept reassignment of any Ineligible Receivables
previously sold by the Bank to HRF from HRF on the date on which such
reassignment obligation arises, and shall pay for such reassigned Ineligible
Receivables by paying to HRF, not later than 3:00 p.m., New York City time on
such date, an amount equal to the unpaid principal balance of such Ineligible
Receivables plus accrued and unpaid finance charges at the annual percentage
rate applicable to such Receivables from the last date billed through the end of
the Due Period in which such reassignment obligation arises.  Upon reassignment
of such Ineligible Receivables, HRF shall automatically and without further
action be deemed to sell, transfer, assign, set-over and otherwise convey to the
Bank, without recourse, representation or warranty, all the right, title and
interest of HRF in and to such Ineligible Receivables, all monies due or to
become due with respect thereto and all proceeds thereof; and such reassigned
Ineligible Receivables shall be treated by HRF as collected in full as of the
date on which they were transferred.  HRF shall execute such documents and
instruments of transfer or assignment and take such other actions as shall
reasonably be requested by the Bank to effect the conveyance of such Ineligible
Receivables pursuant to this subsection.

          Section 6.02.  Reassignment of Noteholders' Collateral in Trust
                         ------------------------------------------------
Portfolio.  In the event any representation or warranty set forth in Section
---------
4.01(a), (c), (d), (f) or (g) or Section 4.02(a)(i), (a)(v) or (a)(ix) is not
true and correct in any material respect and as a result of such breach HRF is
required to accept a reassignment of the Noteholders' Collateral in the
Receivables previously sold by the Bank to HRF pursuant to Section 2.06 of the
Transfer and Servicing Agreement, the Bank shall be obligated to accept a
reassignment of HRF's interest in such Receivables on the terms set forth below.

          The Bank shall pay to HRF by depositing in the Collection Account in
immediately available funds, not later than 1:00 P.M. New York City time, on the
first Transfer Date following the Due Period in which such reassignment
obligation arises, in payment for such reassignment, an amount equal to the
amount specified in Section 2.06 of the Transfer and Servicing Agreement.

                              [END OF ARTICLE VI]

                                      16
<PAGE>

                                  ARTICLE VII

                             CONDITIONS PRECEDENT

          Section 7.01.  Conditions to HRF's Obligations Regarding Initial
                         -------------------------------------------------
Receivables.  The obligations of HRF to purchase the Receivables in the Initial
-----------
Accounts on the Closing Date 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 on the Closing Date with the same effect as
though such representations and warranties had been made on such date;

          (b)  All information concerning the Initial Accounts provided to HRF
shall be true and correct as of the Initial Cut-Off Date in all material
respects;

          (c)  The Bank shall have (i) delivered to HRF a computer file or
microfiche list containing a true and complete list of all Initial Accounts
identified by account number and by the Receivables balance as of the Initial
Cut-Off Date and (ii) 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 (other than Receivables in
Additional Accounts) now existing and hereafter created for the transfer of
accounts and general intangibles (each as defined in Section 9-106 of the UCC)
meeting the requirements of applicable state law in such manner and in such
jurisdiction as would be necessary to perfect the sale of and security interest
in the Receivables from the Bank to HRF, and shall deliver a file-stamped copy
of such financing statements or other evidence of such filings to HRF;

          (e)  On or before the Closing Date, (i) HRF and the Owner Trustee
shall have entered into the Trust Agreement (ii) HRF, the Bank and the Trust
shall have entered into the Transfer and Servicing Agreement, (iii) the Trust,
the Bank and the Indenture Trustee shall have entered into the Indenture and
(iv) the closing under the Transfer and Servicing Agreement and the Indenture
shall take place simultaneously with the initial closing hereunder; 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 HRF, and HRF shall have received from the
Bank copies of all documents (including, without limitation, records of
corporate proceedings) relevant to the transactions herein contemplated as HRF
may reasonably have requested.

          Section 7.02.  Conditions Precedent to the Bank's Obligations.  The
                         ----------------------------------------------
obligations of the Bank to sell Receivables in the Initial Accounts on the
Closing Date shall be subject to the satisfaction of the following conditions:

          (a)  All representations and warranties of HRF 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

                                      17
<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 HRF copies of all documents (including, without limitation, records of
corporate proceedings) relevant to the transactions herein contemplated as the
Bank may reasonably have requested.

                             [END OF ARTICLE VII]

                                      18
<PAGE>

                                 ARTICLE VIII

                         TERM AND PURCHASE TERMINATION

          Section 8.01.  Term.  This Agreement shall commence as of the date of
                         ----
execution and delivery hereof and shall continue until the termination of the
Trust as provided in Article VIII of the Trust Agreement.

          Section 8.02.  Purchase Termination.  If the Bank shall fail generally
                         --------------------
to, or admit in writing its inability to, pay its debts as they become due; or
if a proceeding shall have been instituted in a court having jurisdiction in the
premises seeking a decree or order for relief in respect of the Bank in an
involuntary case under any Debtor Relief Law, or for the appointment of a
receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator or
other similar official of the Bank or for any substantial part of the Bank's
property, or for the winding-up or liquidation of the Bank's affairs and, if
instituted against the Bank, any such proceeding shall continue undismissed or
unstayed and in effect, for a period of 60 consecutive days, or any of the
actions sought in such proceeding shall occur; or if the Bank shall commence a
voluntary case under any Debtor Relief Law, or if the Bank shall consent to the
entry of an order for relief in an involuntary case under any Debtor Relief Law,
or consent to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator, conservator or other similar
official of, or for, any substantial part of its property, or any general
assignment for the benefit of its creditors; or the Bank or any subsidiary of
the Bank shall have taken any corporate action in furtherance of any of the
foregoing actions (each an "Insolvency Event"); then the Bank shall immediately
                            ----------------
cease to transfer Principal Receivables to HRF and shall promptly give notice to
HRF, the Owner Trustee and the Indenture Trustee of such Insolvency Event.
Notwithstanding any cessation of the transfer to HRF of additional Principal
Receivables, Principal Receivables transferred to HRF prior to the occurrence of
such Insolvency Event and Collections in respect of such Principal Receivables
and Finance Charge and Administrative Receivables whenever created, accrued in
respect of such Principal Receivables, shall continue to be property of HRF
available for transfer by HRF to the Trust pursuant to the Transfer and
Servicing Agreement.

                             [END OF ARTICLE VIII]

                                      19
<PAGE>

                                  ARTICLE IX

                           MISCELLANEOUS PROVISIONS

          Section 9.01.  Amendment.  This Agreement and any Conveyance Papers
                         ---------
and the rights and obligations of the parties hereunder may not be changed
orally, but only by an instrument in writing signed by HRF and the Bank in
accordance with this Section 9.01.  This Agreement and any Conveyance Papers may
be amended from time to time by HRF 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 or in any such other Conveyance Papers, (iii) to add
any other provisions with respect to matters or questions arising under this
Agreement or any Conveyance Papers which shall not be inconsistent with the
provisions of this Agreement or any Conveyance Papers, (iv) to change or modify
the Purchase Price and (v) to change, modify, delete or add any other obligation
of the Bank or HRF; provided, however that no amendment pursuant to clause (iv)
or (v) of this Section 9.01 shall be effective unless the Bank and HRF have been
notified in writing that the Rating Agency Condition has been satisfied;
provided, further, the Bank and HRF shall have delivered to the Indenture
Trustee an Officer's Certificate, dated the date of any such action, stating
that each of the Bank and HRF reasonably believes that such action will not have
an Adverse Effect, unless the Owner Trustee and the Indenture Trustee shall
consent thereto.  Any reconveyance executed in accordance with the provisions
hereof shall not be considered to be an amendment to this Agreement.  A copy of
any amendment to this Agreement shall be sent to the Rating Agency.

          Section 9.02.  Governing Law. THIS AGREEMENT AND THE CONVEYANCE PAPERS
                         -------------
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: [.], (b) in the case of HRF, 1111 Town Center Drive, Las Vegas,
Nevada 89134, Attention: [.], (c) in the case of the Owner Trustee, Rodney
Square North, 1100 North Market Street, Wilmington, DE 19890-0001, (d) or in the
case of the Indenture Trustee, Wells Fargo Bank Minnesota, N.A., MAC N9311-161,
6th & Marquette, Minneapolis, MN 55479, Attention: Asset Backed Securities; 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 or any Conveyance
Paper 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 or any Conveyance
Paper and shall in no way affect the validity or enforceability of the other
provisions of this Agreement or of any Conveyance Paper.

          Section 9.05.  Assignment.  Notwithstanding anything to the contrary
                         ----------
contained herein, other than HRF's assignment of its rights, title, and
interests 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 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 and all other
Conveyance Papers may not be assigned by the parties hereto; provided, however,
that the Bank shall

                                      20
<PAGE>

have the right to 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 which assumes
the obligations of this Agreement or (c) to any entity provided that the Rating
Agency has advised HRF 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 HRF's
right, title, and interest in, to, and under this Agreement, including, without
limitation, all of HRF's right, title, and interest in and to the Receivables
purchased pursuant to this Agreement, shall be assigned by HRF to the Trust, and
shall be assigned by the Trust 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 or setoff or defense which it may have against HRF, due to a
breach by HRF of this Agreement or for any other reason, and notwithstanding the
bankruptcy of HRF or any other event whatsoever, the Bank's sole remedy shall be
a claim against HRF for money damages, and then only to the extent of funds
received by HRF pursuant to the Transfer and Servicing Agreement, and in no
event shall the Bank assert any claim on or any interest in the Receivables or
any proceeds thereof or take any action which would reduce or delay receipt by
the Trust of collections with respect to the Receivables.  Additionally, the
Bank agrees for the benefit of the Trust that any amounts payable by the Bank to
HRF hereunder which are to be paid by HRF to the Trust for the benefit of the
Noteholders shall be paid by the Bank, on behalf of HRF, directly to the Trust.

          Section 9.07.  Further Assurances.  HRF 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, the Owner
Trustee or the Indenture Trustee more fully to effect the purposes of this
Agreement, the Conveyance Papers and the Transfer and Servicing 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 HRF or the Bank, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.  Subject to Section 9.06, the rights,
remedies, powers and privileges herein provided are cumulative and not
exhaustive of any rights, remedies, powers and privileges provided by law.

          Section 9.09.  Counterparts.  This Agreement and all Conveyance Papers
                         ------------
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 and
                         ----------------------------------
the Conveyance Papers will inure to the benefit of and be binding upon the
parties hereto and their respective successors and permitted assigns.  The Trust
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 and the Conveyance Papers 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 and the
Conveyance Papers.  This Agreement and the Conveyance Papers may not be
modified, amended, waived or supplemented except as provided herein.

                                      21
<PAGE>

          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.  Survival of Representations and Warranties.  All
                         ------------------------------------------
representations, warranties and agreements contained in this Agreement or
contained in any Supplemental Conveyance, shall remain operative and in full
force and effect and shall survive conveyance of the Receivables by the Bank to
HRF and thereafter to the Trust pursuant to the Transfer and Servicing Agreement
and by the Trust and the Indenture Trustee pursuant to the Indenture.

          Section 9.15.  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 HRF to invoke the process of any
Governmental Authority for the purpose of commencing or sustaining a case
against HRF under any Federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of HRF or any substantial part of its property or
ordering the winding-up or liquidation or the affairs of HRF.

                              [END OF ARTICLE IX]

                                      22
<PAGE>

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

Dated:  [.], 2000                  HOUSEHOLD BANK (NEVADA), N.A.

                                   By: _______________________________
                                       Name:
                                       Title:

                                   HOUSEHOLD RECEIVABLES FUNDING, INC. III

                                   By: _______________________________
                                       Name:
                                       Title:
<PAGE>

                                                                       EXHIBIT A
                                                                       ---------

                        FORM OF SUPPLEMENTAL CONVEYANCE

                        (As required by Section 2.05 of
                      the Receivables Purchase Agreement)

          SUPPLEMENTAL CONVEYANCE No. ________ dated as of
________________________ ______, __________, by and between HOUSEHOLD BANK
(NEVADA), N.A. (the "Bank"), and HOUSEHOLD RECEIVABLES FUNDING, INC. III
                     ----
("HRF"), pursuant to the Receivables Purchase Agreement referred to below.
  ---

                                  WITNESSETH:
                                  ----------

          WHEREAS, the Bank and HRF are parties to a Receivables Purchase
Agreement, dated as of ____________________________ ____, 2000 (hereinafter as
such agreement may have been, or may from time to time be, amended, supplemented
or otherwise modified, the "Receivables Purchase Agreement");
                            ------------------------------

          WHEREAS, pursuant to the Receivables Purchase Agreement, the Bank
wishes to designate Additional Accounts to be included as Accounts and the Bank
wishes to convey its right, title and interest in the Receivables of such
Additional Accounts, whether now existing or hereafter created, to HRF pursuant
to the Receivables Purchase Agreement (as each such term is defined in the
Receivables Purchase Agreement); and

          WHEREAS, HRF is willing to accept such designation and conveyance
subject to the terms and conditions hereof.

          NOW, THEREFORE, the Bank and HRF hereby agree as follows:

          1.   Defined Terms.  All capitalized terms used herein shall have the
               -------------
meanings ascribed to them in the Receivables Purchase Agreement unless otherwise
defined herein.

          "Addition Cut-Off Date" shall mean, with respect to the Additional
           ---------------------
Accounts designated hereby, ________________ ______, __________.

          "Addition Date" shall mean, with respect to the Additional Accounts
           -------------
designated hereby ______________ ______, __________.

          2.   Designation of Additional Accounts.  The Bank delivers herewith a
               ----------------------------------
computer file or microfiche list containing a true and complete schedule
identifying all such Additional Accounts and specifying for each such Account,
as of the Addition Cut-Off Date, its account number, the aggregate amount
outstanding in such Account and the aggregate amount of Principal Receivables in
such Account.  Such computer file, microfiche list or other documentation shall
be as of the date of this Supplemental Conveyance incorporated into and made
part of this Supplemental Conveyance and is marked as Schedule I to this
                                                      ----------
Supplemental Conveyance.

          3.   Conveyance of Receivables.
               -------------------------

          (a)  The Bank does hereby sell, transfer, assign, set over and
otherwise convey to HRF, without recourse except as provided in the Receivables
Purchase Agreement, all its right, title and interest

                                      A-1
<PAGE>

in, to and under (i) the Receivables generated by such Additional Accounts, now
existing at the close of business on the Addition Cut-Off Date and hereafter
created until termination of the Receivables Purchase Agreement, all monies due
or to become due and all amounts received with respect thereto and all
"proceeds" (including, without limitation, "proceeds" as defined in Article 9 of
the UCC) thereof and (ii) the right to receive Interchange and Recoveries with
respect to such Receivables.

          (b)  In connection with such sale, the Bank agrees to record and file,
at its own expense, one or more financing statements (and continuation
statements with respect to such financing statements when applicable) with
respect to the Receivables, now existing and hereafter created, for the transfer
of accounts and general intangibles meeting the requirements of applicable state
law in such manner and in such jurisdictions as are necessary to perfect the
sale and assignment of and the security interest in the Receivables to HRF, and
to deliver a file-stamped copy of such financing statement or other evidence of
such filing to HRF.

          (c)  In connection with such sale, the Bank further agrees, at its own
expense, on or prior to the date of this Supplemental Conveyance, to indicate in
the appropriate computer files or microfiche list that all Receivables created
in connection with the Additional Accounts designated hereby have been conveyed
to HRF pursuant to this Supplemental Conveyance.

          4.   Acceptance by HRF.  HRF hereby acknowledges its acceptance of all
               -----------------
right, title and interest to the property, now existing and hereafter created,
conveyed to HRF pursuant to Section 3(a) of this Supplemental Conveyance, and
declares that it shall maintain such right, title and interest.  HRF further
acknowledges that, prior to or simultaneously with the execution and delivery of
this Supplemental Conveyance, the Bank delivered to HRF the computer file or
microfiche list described in Section 2 of this Supplemental Conveyance.

          5.   Representations and Warranties of the Bank.  The Bank hereby
               ------------------------------------------
represents and warrants to HRF as of the date of this Supplemental Conveyance
and as of the Addition Date that:

          (a)  Legal, Valid and Binding Obligation.  This Supplemental
               -----------------------------------
Conveyance 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;

          (b)  Eligibility of Accounts.  On the Addition Cut-Off Date, each
               -----------------------
Additional Account designated hereby is an Eligible Account;

          (c)  No Liens.  Each Receivable in an Additional Account designated
               --------
hereby has been conveyed to HRF free and clear of any Lien and each underlying
receivable is free and clear of all Liens;

          (d)  Eligibility of Receivables.  On the Addition Cut-Off Date, each
               --------------------------
Receivable existing in an Additional Account designated hereby is an Eligible
Receivable and as of the date of creation of any Receivable in an Additional
Account designated hereby, such Receivable is an Eligible Receivable;

          (e)  Selection Procedures.  No selection procedure believed by the
               --------------------
Bank to be adverse to the interests of HRF or the Noteholders was utilized in
selecting the Additional Accounts;

          (f)  Transfer of Receivables.  This Supplemental Conveyance
               -----------------------
constitutes a valid sale, transfer and assignment to HRF of all right, title and
interest of the Bank in the Receivables arising in the Additional Accounts
designated hereby now existing or hereafter created, all monies due or to become
due

                                      A-2
<PAGE>

and all amounts received with respect thereto and the "proceeds" (including,
without limitation, "proceeds" as defined in Article 9 of the UCC) thereof and
the Interchange and the Recoveries with respect thereto;

          (g)  No Conflict.  The execution and delivery of this Supplemental
               -----------
Conveyance, the performance of the transactions contemplated by this
Supplemental Conveyance and the fulfillment of the terms hereof, 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 the Bank is a party or by which it or its properties
are bound;

          (h)  No Violation.  The execution and delivery of this Supplemental
               ------------
Conveyance by the Bank, the performance of the transactions contemplated by this
Supplemental Conveyance and the fulfillment of the terms hereof applicable to
the Bank will not conflict with or violate any Requirements of Law applicable to
the Bank;

          (i)  No Proceedings.  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
Supplemental Conveyance, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Supplemental Conveyance, (iii) seeking any
determination or ruling that, in the reasonable judgment of the Bank, would
materially and adversely affect the performance by the Bank of its obligations
under this Supplemental Conveyance or (iv) seeking any determination or ruling
that would materially and adversely affect the validity or enforceability of
this Supplemental Conveyance; and

          (j)  All Consents.  All authorizations, consents, orders or approvals
               ------------
of any court or other governmental authority required to be obtained by the Bank
in connection with the execution and delivery of this Supplemental Conveyance by
the Bank and the performance of the transactions contemplated by this
Supplemental Conveyance by the Bank, have been obtained.

          6.   Ratification of the Receivables Purchase Agreement.  The
               --------------------------------------------------
Receivables Purchase Agreement is hereby ratified, and all references to the
"Receivables Purchase Agreement," to "this Agreement" and "herein" shall be
--------------------------------      --------------       ------
deemed from and after the Addition Date to be a reference to the Receivables
Purchase Agreement as supplemented by this Supplemental Conveyance.  Except as
expressly amended hereby, all the representations, warranties, terms, covenants
and conditions of the Receivables Purchase Agreement shall remain unamended and
shall continue to be, and shall, remain, in full force and effect in accordance
with its terms and except as expressly provided herein shall not constitute or
be deemed to constitute a waiver of compliance with or consent to non-compliance
with any term or provision of the Receivables Purchase Agreement.

          7.   Counterparts.  This Supplemental Conveyance may be executed in
               ------------
any number of counterparts, all of which taken together shall constitute one and
the same instrument.

                                      A-3
<PAGE>

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

Dated:  _______________ ___, 200_       HOUSEHOLD BANK (NEVADA), N.A.

                                        By: ___________________________________
                                            Name:
                                            Title:

                                        HOUSEHOLD RECEIVABLES FUNDING, INC. III

                                        By: ___________________________________
                                            Name:
                                            Title:

                                      A-4
<PAGE>

                                                                   Schedule I to
                                                                    Supplemental
                                                                    ------------
                                                                      Conveyance
                                                                      ----------

                              ADDITIONAL ACCOUNTS
                              -------------------

                                      I-1
<PAGE>

                                                                      Schedule I
                                                                      ----------
                                LIST OF ACCOUNTS
                                ----------------

                        DEEMED INCORPORATED BY REFERENCE<PAGE>

                                                                     EXHIBIT 4.2

                   BY-LAWS FOR TECHNOLOGY SOLUTIONS COMPANY
                            A Delaware Corporation
                           Effective March 24, 2000

                                   ARTICLE I
                                 STOCKHOLDERS

     Section 1.1.  Annual Meeting.  The annual meeting of stockholders for the
election of directors and the transaction of such other business as may properly
come before it shall be held on the second Monday of May of each year, or such
other date, and at such time and place, within or without the State of Delaware,
as shall be determined by the resolution of the Board of Directors. If the day
fixed for the annual meeting is a legal holiday, such meeting shall be held on
the next succeeding business day. If the election of directors shall not be held
on the day designated herein for the annual meeting of the stockholders, or at
any adjournment thereof, the Board of Directors shall cause the election to be
held at a special meeting of the stockholders as soon thereafter as is
convenient.

     Section 1.2.  Special Meetings.  Subject to the rights of the holders of
any Preferred Stock (as defined in the Certificate of Incorporation) to elect
additional directors under specific circumstances, special meetings of the
stockholders, for any purpose or purposes, unless otherwise prescribed by
statute or by the Certificate of Incorporation, may be called by the Chairman of
the Board or the President and shall be called by the Chairman of the Board or
the President or Secretary at the request in writing of a majority of the Board
of Directors. Such request shall state the purpose or purposes of the proposed
meeting. Only such business shall be conducted at a special meeting of
stockholders as shall have been brought before the meeting pursuant to the
Corporation's notice of meeting. A special meeting of stockholders may be held
at such time and at such place, within or without the State of Delaware, as may
be determined by resolution of the Board of Directors. If no designation of the
place is made for the meeting, the place of the meeting shall be the principal
business office of the Corporation in the State of Illinois.

     Section 1.3.  Notice of Meetings and Adjourned Meetings.  Written notice of
every meeting of stockholders stating the place, date, time and purposes
thereof, shall, except when otherwise required by the Certificate of
Incorporation or the laws of the State of Delaware, be delivered at least ten
but not more than sixty days prior to the meeting to each stockholder of record
entitled to vote thereat, either personally or by mail, by or at the direction
of the President, the Secretary, or the officer or persons calling the meeting.
If mailed, such notice shall be deemed to be given when deposited in the United
States mail, addressed to the stockholder at his address as it appears on the
records of the Corporation. Any meeting at which a quorum of stockholders is
present, in person or by proxy, may adjourn from time to time without notice,
other than announcement at such meeting, until its business is completed. At the
adjourned meeting, the Corporation may transact any business which might have
been transacted at the original meeting. If the adjournment is for more than 30
days, or if after the adjournment a new record date is fixed for the adjourned
meeting, a notice of the adjourned meeting shall be given to each stockholder of
record entitled to vote at the meeting.

     Section 1.4.  Quorum.  Except as otherwise provided by law, a majority of
the shares entitled to vote, represented in person or by proxy, shall constitute
a quorum at a meeting of stockholders, except that when specified business is to
be voted on by a class or series voting as a class, the holders of a majority of
the voting power of the shares of such class or series shall constitute a quorum
for the transaction of such business. If at any meeting a quorum is not present,
the Chairman of such meeting shall (or may) adjourn, by the affirmative vote of
a majority of the shares so represented, the meeting to another time and/or
place without notice other than announcement at such meeting. If the adjournment
is for more than thirty days, or if after the adjournment a new record date is
fixed for the adjourned meeting, a notice of the adjourned meeting shall be
given to each stockholder of record entitled to vote at the meeting. At such
adjourned meeting at which a quorum shall be present or represented, any
business

<PAGE>

may be transacted which might have been transacted at the meeting as originally
called, notwithstanding the withdrawal of enough stockholders to leave less than
a quorum.

     Section 1.5.  Voting.  Unless otherwise provided by the Certificate of
Incorporation or these By-Laws, each stockholder entitled to vote at any meeting
of stockholders is entitled to one vote for each share of stock held by him
which has voting power upon the matter in question. If a quorum is present, the
affirmative vote of a majority of the shares represented at the meeting and
entitled to vote on the subject matter shall be the act of the stockholders for
all matters, unless the vote of a greater number or voting by classes is
required by Delaware law, the Certificate of Incorporation, or these By-laws.

     Section 1.6.  Proxies.  At every meeting of the stockholders, each
stockholder having the right to vote thereat shall be entitled to vote in person
or by proxy. Such proxy shall be executed in writing and shall be filed with the
Secretary of the Corporation before or at the time of the meeting. No proxy
shall be valid after three years from the date of its execution, unless
otherwise provided in the proxy.

     Section 1.7.  Fixing Date for Determination of Stockholders of Record;
Determining Validity of Consents.

     (a)  In order that the Corporation may determine the stockholders entitled
to notice of or to vote at any meeting of stockholders or any adjournment
thereof, or entitled to receive payment of any dividend or other distribution or
allotment of any rights, or entitled to exercise any rights in respect of any
change, conversion or exchange of stock or for the purpose of any other lawful
purpose, except to express consent to corporate action in writing without a
meeting, the Board of Directors may fix, in advance, a record date, which shall
not be more than sixty nor less than ten days before the date of such meeting,
nor more than sixty days prior to any other action. A determination of
stockholders of record entitled to notice of or to vote at a meeting of
stockholders shall apply to any adjournment of the meeting; provided, however,
that the Board of Directors may fix a new record date for the adjourned meeting.

     (b)  In order that the Corporation may determine the stockholders entitled
to consent to corporate action in writing without a meeting, the Board of
Directors may fix a record date, which record date shall not precede the date
upon which the resolution fixing the record date is adopted by the Board of
Directors, and which date shall not be more than ten days after the date upon
which the resolution fixing the record date is adopted by the Board of
Directors. Any stockholder of record seeking to have the stockholders authorize
or take corporate action by written consent shall, by written notice to the
Secretary, request the Board of Directors to fix a record date. The Board of
Directors shall promptly, but in all events within ten days after the date on
which such a request is received, adopt a resolution fixing the record date. If
no record date has been fixed by the Board of Directors within ten days of the
date on which such a request is received, the record date for determining
stockholders entitled to consent to corporate action in writing without a
meeting, when no prior action by the Board of Directors is required by
applicable law, shall be the first date on which a signed written consent
setting forth the action taken or proposed to be taken is delivered to the
Corporation by delivery to its registered office in the State of Delaware, its
principal place of business, or any officer or agent of the Corporation having
custody of the book in which proceedings of stockholders meetings are recorded,
to the attention of the Secretary of the Corporation. Delivery shall be by hand
or by certified or registered mail, return receipt requested. If no record date
has been fixed by the Board of Directors and prior action by the Board of
Directors is required by applicable law, the record date for determining
stockholders entitled to consent to corporate action in writing without a
meeting shall be at the close of business on the date on which the Board of
Directors adopts the resolution taking such prior action.

     (c)  In the event of the delivery to the Corporation of a written consent
or consents purporting to authorize or take corporate action and/or related
revocations (each such written consent or related revocation is referred to in
this section as a "Consent"), the Secretary of the Corporation shall provide for
safekeeping of such Consent and shall immediately appoint duly qualified and
independent inspectors to (i) conduct promptly such reasonable ministerial
review as such inspectors deem necessary or appropriate for the purpose of
ascertaining the sufficiency and validity of such Consent and all matters
incident thereto, including, without limitation, whether holders of shares
having the requisite voting power to authorize or take the action specified in
the Consent have given consent and (ii) deliver to the Secretary a written
report regarding the foregoing. If after such investigation and report the
Secretary shall determine that the Consent is valid, that fact shall be
certified on the records of the Corporation kept for the purpose

                                       2
<PAGE>

of recording the proceedings of meetings of stockholders, and the Consent shall
be filed in such records, at which time the Consent shall become effective as
stockholder action.

     Section 1.8.  Stockholder List.  The Secretary or the officer who has
charge of the stock ledger of the Corporation shall prepare and make, at least
ten days before every meeting of the stockholders, a complete list of the
stockholders entitled to vote at the meeting, arranged in alphabetical order,
and showing the address of each stockholder and the number of shares registered
in the name of each stockholder. Such list shall be open to the examination of
any stockholder, for any purpose germane to the meeting, for a period of at
least 10 days prior to the meeting, either at a place within the city where the
meeting is to be held, which place shall be specified in the notice of the
meeting, or, if not so specified, at the time and place of the meeting during
the whole time thereof, and may be inspected by any stockholder who is present.
The stock ledger shall be the only evidence as to who are the stockholders
entitled to examine such list or to vote in person or by proxy at any meeting of
stockholders.

     Section 1.9.  Voting of Shares by Certain Holders.  Shares standing in the
name of another corporation, domestic or foreign, and entitled to vote may be
voted by such officer, agent, or proxy as the by-laws of such corporation may
prescribe or, in the absence of such provision, as the board of directors of
such corporation may determine.

     Shares standing in the name of a deceased person, a minor, an incompetent
or a corporation declared bankrupt and entitled to vote may be voted by his
administrator, executor, guardian, or conservator, as the case may be, either in
person or by proxy without transfer of such shares into his name.

     A stockholder whose shares are pledged shall be entitled to vote such
shares unless in the transfer books of the Corporation the pledgor has expressly
empowered the pledgee to vote thereon, in which case only the pledgee, or his
proxy, may represent such stock and vote thereon.

     Shares of its own stock belonging to the Corporation or to another
corporation, if a majority of the shares entitled to vote in the election of
directors of such other corporation is held by this corporation, shall not be
voted at any meeting and shall not be counted in determining the total number of
outstanding shares for the purpose of determining whether a quorum is present.
Nothing in this section shall be construed to limit the right of this
Corporation to vote shares of its own stock held by it in a fiduciary capacity.

     Section 1.10.  Consent of Stockholders in Lieu of Meeting.  Any action
required to be taken or which may be taken at any annual or special meeting of
stockholders of the Corporation, may be taken without a meeting, without prior
notice and without a vote, if a consent or consents in writing, setting forth
the action so taken, shall be signed by persons entitled to vote stock
representing not less than the number of shares necessary to authorize or take
such action at a meeting at which all shares entitled to vote thereon were
present and voted. Every written consent shall bear the date of signature of
each stockholder or his representative who signs the consent. Prompt notice of
the taking of the corporate action without a meeting by less than unanimous
written consent shall be given to those stockholders who have not consented in
writing. Such consents shall be delivered to the Corporation by delivery to its
registered office in the State of Delaware, its principal office in the State of
Illinois or the Secretary of the Corporation. Delivery made to the Corporation's
registered office shall be by hand or by certified or registered mail, return
receipt requested. No written consent shall be effective to take the corporate
action referred to therein unless, within sixty days of the earliest dated
consent delivered in the manner required by this Section 1.10 to the
Corporation, written consents signed by a sufficient number of stockholders to
take action are delivered to the Corporation by delivery to its registered
office in the State of Delaware, its principal place of business or the
Secretary of the Corporation. Delivery made to the Corporation's registered
office shall be by hand or by certified or registered mail, return receipt
requested. Such consents shall be filed with the minutes of proceedings of the
stockholders and actions authorized or taken under such consents shall have the
same force and effect as those adopted by stockholders' vote at their meetings.

     Section 1.11.  Notice of Stockholder Business.

     (a)  At any annual meeting of the Corporation's stockholders, only such
business shall be conducted as shall have been properly brought before the
meeting. To be properly brought before an annual meeting, business must be (i)
specified in the notice of meeting (or any supplement thereto) given by or at
the direction of the Board of

                                       3
<PAGE>

Directors, (ii) otherwise properly brought before the meeting by or at the
direction of the Board of Directors, or (iii) otherwise properly brought before
the meeting by a stockholder of record entitled to vote at such meeting who has
complied with the provisions of this Section 1.11. Business may be properly
brought before an annual meeting by a stockholder only if written notice of the
stockholder's intent to propose such business has been delivered to the
Secretary of the Corporation not less than 90 nor more than 120 calendar days in
advance of the anniversary date of the preceding year's annual meeting of
stockholders, except that if no annual meeting was held in the previous year or
the date of the annual meeting has been changed by more than 30 calendar days
from the anniversary of the preceding year's annual meeting date, written notice
of a stockholder proposal shall be delivered to the Secretary of the Corporation
not later than the close of business on the 10th day following the first public
announcement of the date of such annual meeting. Delivery shall be by hand or by
certified or registered mail, return receipt requested. In no event shall the
public announcement of an adjournment of an annual meeting commence a new time
period for the giving of stockholder's notice as described above.

     (b)  Each notice of new business must set forth:  (i) the name and address
of the stockholder who intends to raise the new business; (ii) the business
desired to be brought forth at the meeting and the reasons for conducting such
business at the meeting; (iii) a representation that the stockholder is a holder
of record of stock of the Corporation entitled to vote with respect to such
business and intends to appear in person or by proxy at the meeting to move the
consideration of such business; (iv) such stockholder's total beneficial
ownership of the Corporation's voting stock; and (v) such stockholder's interest
in such business. The chairman of the meeting may refuse to acknowledge a motion
to consider any business that he determines was not made in compliance with the
foregoing procedures.

     (c)  For purposes of these by-laws, "public announcement" shall mean
disclosure in a press release reported by the Dow Jones News Service, Associated
Press or comparable national news service or in a document publicly filed by the
Corporation with the Securities and Exchange Commission pursuant to Section 13,
14 or 15(d) of the Securities Exchange Act of 1934, as amended.

     Section 1.12.  Nomination of Directors.

     (a)  Nominations for the election of directors may be made by the Board of
Directors or a committee appointed by the Board of Directors or by any
stockholder entitled to vote in the election of directors generally. However,
subject to the rights of the holder of any Preferred Stock, any stockholder
entitled to vote in the election of directors may nominate one or more persons
for election as director(s) at a meeting only if written notice of such
stockholder's intent to make such nomination or nominations has been delivered
to the Secretary of the Corporation not later than (i) with respect to an
election to be held at an annual meeting of stockholders, not less than 90 nor
more than 120 days in advance of the anniversary date of the preceding year's
annual meeting of stockholders, except that if no annual meeting was held in the
previous year or the date of the annual meeting has been changed by more than 30
calendar days from the anniversary of the preceding year's annual meeting date,
written notice of a nominee proposal shall be delivered to the Secretary of the
Corporation not later than the close of business on the 10th day following the
first public announcement of the date of such annual meeting, and (ii) with
respect to an election to be held at a special meeting of stockholders for the
election of directors, the close of business on the 10th day following the first
public announcement of the date of such meeting. Delivery shall be by hand or by
certified or registered mail, return receipt requested. In no event shall the
public announcement of an adjournment of any annual or special meeting commence
a new time period for the giving of a stockholder's notice as described above.

     (b)  Each such notice shall set forth: (i) the name and address of the
stockholder who intends to make the nomination and of the person or persons to
be nominated; (ii) such stockholder's total beneficial ownership of the
Corporation's voting stock; (iii) a representation that the stockholder is a
holder of record of stock of the Corporation entitled to vote at such meeting
and intends to appear in person or by proxy at the meeting to nominate the
person or persons specified in the notice; (iv) a description of all agreements,
arrangements or understandings between the stockholder and each nominee and any
other person or persons (naming such person or persons) pursuant to which the
nomination or nominations are to be made by the stockholder; (v) such other
information regarding each nominee proposed by such stockholder as would be
required to be included in a proxy statement filed pursuant to the proxy rules
of the Securities and Exchange Commission had the nominee been nominated, or
intended to be nominated, by the Board of Directors; and (vi) the written
consent of each nominee to serve as a director of the Corporation if so elected.

                                       4
<PAGE>

                                  ARTICLE II
                                   DIRECTORS

     Section 2.1.  General Powers.  The business and affairs of the Corporation
shall be managed by or under the direction of its Board of Directors.

     Section 2.2.  Number, Election and Term of Office of Directors.  Subject to
the rights of holders of any series of Preferred Stock to elect directors under
specified circumstances, the Board of Directors of the Corporation shall consist
of such number of Directors, not less than five and not more than twelve, as
shall be fixed from time to time by the Board of Directors. A minimum of one
director shall be elected annually by the stockholders as provided by Sections
1.1 and 1.5 of these By-Laws and by the Certificate of Incorporation. Each
director elected shall hold office until his successor is elected and qualified,
or until his earlier death, removal or resignation. The maximum term a director
may serve without being re-elected by the stockholders shall be three years.
Directors need not be residents of the State of Delaware or stockholders of the
Corporation.

     Section 2.3.  Resignation.  Any director may resign by giving written
notice to the Board of Directors or the President. Any such resignation shall
take effect at the time of receipt of notice thereof or at any later time
specified therein, and, unless expressly required, acceptance of such
resignation shall not be necessary to make it effective.

     Section 2.4.  Vacancies.  Subject to the rights of the holders of any
series of Preferred Stock to elect additional directors under specific
circumstances and except as otherwise required by the Certificate of
Incorporation, any vacancy occurring in the Board of Directors, including a
vacancy created by an increase in the number of directors, may be filled for the
remainder of the unexpired term by the affirmative vote of a majority of the
directors then in office, although less than a quorum. No decrease in the number
of directors constituting the Board of Directors shall shorten the term of any
incumbent director. Except as otherwise required by the Certificate of
Incorporation, when one or more directors shall resign from the Board of
Directors, effective at a future date, a majority of the directors then in
office, including those who have so resigned, shall have the power to fill such
vacancy or vacancies, the vote thereon to take effect when such resignation or
resignations shall become effective, and each director so chosen shall hold
office as provided in this Section for the filling of other vacancies.

     Section 2.5.  Place of Meetings.  Meetings of the Board of Directors may be
held at such places, within or without the State of Delaware, as the Board of
Directors may from time to time determine or as may be specified in the call of
any meetings.

     Section 2.6.  Regular Meetings.  A regular annual meeting of the Board of
Directors shall be held without call or notice immediately after and at the same
general place as the annual meeting of stockholders, for the purpose of
organizing the Board of Directors, electing officers and transacting any other
business that may properly come before the meeting. Additional regular meetings
of the Board of Directors may be held without call or notice at such place and
at such times as shall be fixed by resolution of the Board of Directors.

     Section 2.7.  Special Meetings.  Special meetings of the Board of Directors
may be called by the President or the director then in office. Notice of special
meetings shall either be mailed by the Secretary to each director at least two
days before the meeting or be given personally or telegraphed or telecopied to
each director by the Secretary at least twenty-four hours before the meeting.
Such notice shall set forth the date, time and place of such meeting but need
not, unless otherwise required by law, state the purpose of the meeting. When
notice is given by mail, the mail shall be addressed to each director at his
address as it appears on the records of the Corporation, with postage thereon
prepaid, and such notice shall be deemed to be given at the time when the same
shall be deposited in the United States mail. Any director may waive notice of
any meeting in writing either before or after the meeting.

     Section 2.8.  Quorum and Voting.  A majority of the entire Board of
Directors shall constitute a quorum for the transaction of business at any
meeting of the Board of Directors. The act of the majority of the directors
present at a meeting at which a quorum is present shall be the act of the Board
of Directors unless otherwise provided by the laws of the State of Delaware, the
Certificate of Incorporation or these By-Laws. A majority of the directors
present at any meeting at which a quorum is present may adjourn the meeting to
any other date, time or place without further notice other than announcement at
the meeting. If at any meeting a quorum is not present, a majority of the

                                       5
<PAGE>

directors present may adjourn the meeting to any other date, time or place
without notice other than announcement at the meeting until a quorum is present.

     Section 2.9.  Telephonic Meetings.  Members of the Board of Directors or of
any committee designated by the Board of Directors may participate in a meeting
of the Board of Directors or a committee thereof by means of conference
telephone or other similar communications equipment by means of which all
persons participating in the meeting can hear each other, and participation in a
meeting pursuant to this Section 2.9 shall constitute presence in person at such
meeting.

     Section 2.10.  Compensation.  Unless otherwise restricted by the
Certificate or Incorporation, the Board of Directors shall have the authority to
fix the compensation of directors. The directors shall be paid their reasonable
expenses, if any, of attendance at each meeting of the Board of Directors and
may be paid a fixed sum for attendance at each meeting of the Board of Directors
and an annual retainer or salary for services as a director. Members of any
committee of the Board of Directors may be allowed like fees and expenses for
service on or attendance at meetings of such committee. No such payment shall
preclude any director from serving the Corporation in any other capacity and
receiving compensation therefor. Members of special or standing committees may
be allowed like compensation for attending committee meetings.

     Section 2.11.  Presumption of Assent.  Unless otherwise provided by the
laws of the State of Delaware, a director of the Corporation who is present at a
meeting of the Board of Directors at which action is taken on any corporate
matter shall be presumed to have assented to the action taken unless his dissent
shall be entered in the minutes of the meeting or unless he shall file his
written dissent to such action with the person acting as Secretary of the
meeting before the adjournment thereof or shall forward such dissent by
registered mail to the Secretary of the Corporation immediately after the
adjournment of the meeting. Such right to dissent shall not apply to a director
who voted in favor of such action.

     Section 2.12.  Action without Meeting.  Unless otherwise restricted by the
Certificate of Incorporation or these By-Laws, any action required or permitted
to be taken at any meeting of the Board of Directors, or of any committee
thereof, may be taken without a meeting, if a written consent thereto is signed
by all members of the Board of Directors or of such committee, as the case may
be, and such written consent is filed with the minutes of proceedings of the
Board of Directors or such committee.

     Section 2.13.  Presiding Officer.  The presiding officer at any meeting of
the Board of Directors shall be the President or, in his absence, any other
director elected chairman by vote of a majority of the directors present at the
meeting.

     Section 2.14.  Executive Committee.  The Board of Directors may, in its
discretion by resolution passed by a majority of the Board of Directors,
designate an Executive Committee consisting of such number of directors as the
Board of Directors shall determine. The Executive Committee shall have and may
exercise all of the authority of the Board of Directors in the management of the
Corporation with respect to any matter which may require action prior to, or
which in the opinion of the Executive Committee may be inconvenient,
inappropriate or undesirable to be postponed until, the next meeting of the
Board of Directors; provided the Executive Committee shall not have the power or
authority of the Board of Directors in reference to amending the Certificate of
Incorporation, adopting an agreement of merger or consolidation, recommending to
the stockholders the sale, lease or exchange of all or substantially all of the
Corporation's property and assets, recommending to the stockholders a
dissolution of the Corporation or a revocation of a dissolution, or an amendment
to these By-Laws. Any member of the Board of Directors may request the Chairman
of the Executive Committee to call a meeting of the Executive Committee with
respect to a specified subject.

     Section 2.15.  Other Committees.  The Board of Directors may from time to
time, in its discretion, by resolution passed by a majority of the Board of
Directors, designate, and appoint, other committees of one or more directors
which shall have and may exercise such lawfully delegable powers and duties
conferred or authorized by the resolutions of designation and appointment. The
Board shall have power at any time to change the members of any such committee,
to fill vacancies, and to discharge any such committee.

                                       6
<PAGE>

     Section 2.16.  Alternates.  The Board of Directors may from time to time
designate from among the directors alternates to serve on one or more committees
as occasion may require. Whenever a quorum cannot be secured for any meeting of
any committee from among the regular members thereof and designated alternates,
the member or members of such committee present at such meeting and not
disqualified from voting, whether or not he or they constitute a quorum, may
unanimously appoint another member of the Board of Directors to act at the
meeting in place of such absent or disqualified member.

     Section 2.17.  Quorum and Manner of Acting Committees.  The presence of a
majority of members of any committee shall constitute a quorum for the
transaction of business at any meeting of such committee, and the act of a
majority of those present shall be necessary for the taking of any action of any
action thereat provided that no action may be taken by any such committee
without the favorable vote of members of the Committee who are not officers or
full-time employees of the Corporation at least equal to the favorable vote of
members of such committee who are officers or full-time employees of the
Corporation.

     Section 2.18.  Committee Chairman, Books and Records, Etc.  The chairman of
each committee shall be selected from among the members of the committee by the
Board of Directors.

     Each committee shall keep a record of its acts and proceedings, and all
actions of each committee shall be reported to the Board of Directors at its
next meeting.

     Each committee shall fix its own rules of procedure not inconsistent with
these By-Laws or the resolution of the Board of Directors designating such
committee and shall meet at such times and places and upon such call or notice
as shall be provided by such rules.

     Section 2.19.  Reliance upon Records.  Every director of the Corporation,
or member of any committee designated by the Board of Directors shall be fully
protected in relying in good faith upon the records of the Corporation and upon
such information, opinions, reports or statements presented to the Corporation
by any of the Corporation's officers or employees, or committees of the Board of
Directors, or by any other person as to matters the director or member
reasonably believes are within such other person's professional or expert
competence and who has been selected with reasonable care by or on behalf of the
Corporation, as to matters the director or member reasonably believes are within
such other person's professional or expert competence and as to the value and
amount of the assets, liabilities and/or net profits of the Corporation, or any
other facts pertinent to the existence and amount of which the Corporation's
stock might properly be purchased or redeemed.

     Section 2.20.  Interested Directors.  The presence of a director, who is
directly or indirectly a party in a contract or transaction with the
Corporation, or between the Corporation and any other corporation, partnership,
association or other organization in which such director is a director or
officer, or has a financial interest, may be counted in determining whether a
quorum is present and such director may participate in the meeting of the Board
or committee thereof to the extent permitted by applicable law.

                                  ARTICLE III
                                   OFFICERS

     Section 3.1.  Number and Designation.  The officers of the Corporation
shall be a President, one or more Vice Presidents, a Secretary and a Treasurer,
and such Assistant Secretaries, Assistant Treasurers or other officers as may be
elected or appointed by the Board of Directors. Any two or more officers may be
held by the same person unless the Certificate of Incorporation or these By-Laws
provide otherwise.

     Section 3.2.  Election and Term of Office.  The officers of the Corporation
shall be elected annually by the Board of Directors at the first meeting of the
Board of Directors held after each annual meeting of stockholders. If the
election of officers shall not be held at such meeting, such election shall be
held as soon thereafter as conveniently may be. Vacancies may be filled or new
offices created and filled at any meeting of the Board of Directors. Each
officer shall hold office until his or her successor shall have been duly
elected and shall have qualified or until his or her earlier death, resignation
or removal.

                                       7
<PAGE>

     Section 3.3.  Removal and Resignation.  Any officer or agent elected or
appointed by the Board of Directors may be removed by the Board of Directors
whenever in its judgment the best interests of the Corporation would be served
thereby, but such removal shall be without prejudice to the contract rights, if
any, of the person so removed. Any officer may resign at any time by giving
written notice to the Board of Directors, to the President or to the Secretary
of the Corporation. Any such resignation shall take effect at the date of the
receipt of such notice or at any later time specified therein; and, unless
otherwise specified therein, the acceptance of such resignation shall not be
necessary to make it effective.

     Section 3.4.  Vacancies.  A vacancy in any office because of death,
resignation, removal, disqualification or otherwise, may be filled by the Board
of Directors for the unexpired portion of the term.

     Section 3.5.  President.  The President shall be the chief executive
officer of the Corporation and shall in general supervise and control all of the
business and affairs of the Corporation. The President may sign, alone or with
the Secretary or any other proper officer of the Corporation thereunto
authorized by the Board of Directors, any deeds, mortgages, bonds, contracts, or
other instruments which the Board of Directors has authorized to be executed,
except in cases where the signing and execution thereof shall be expressly
delegated by the Board of Directors or by these By-Laws to some other officer or
agent of the Corporation, or shall be required by law to be otherwise signed or
executed, and in general he shall perform all duties incident to the office of
the President and such other duties as from time to time may be prescribed by
the Board of Directors. When present, he shall preside at all meetings of the
stockholders and of the Board of Directors.

     Section 3.6.  The Vice Presidents.  In the absence of the President or in
the event of his or her inability or refusal to act, the Vice President (or in
the event there be more than one Vice President, the Vice Presidents in the
order determined by the Board of Directors or if there be no such determination,
then in the order of their election) shall perform the duties of the President,
and when so acting, shall have all the powers of and be subject to all the
restrictions upon the President. The Board of Directors may also designate
certain Vice Presidents as being in charge of designated divisions, plants, or
functions of the Corporation's business and add appropriate description to their
title. Any Vice President shall perform such duties as from time to time may be
assigned to him by the President or by the Board of Directors.

     Section 3.7.  The Treasurer.  The Treasurer shall have charge and custody
of and be responsible for all funds and securities of the Corporation, receive
and give receipts for moneys due and payable to the Corporation from any source
whatsoever, deposit all such moneys in the name of the Corporation in such
banks, trust companies or other depositories as shall be selected in accordance
with the provisions of Article IV of these By-Laws, disburse the funds of the
Corporation as ordered by the Board of Directors or the President or as
otherwise required in the conduct of the business of the Corporation, and render
to the President or the Board of Directors, upon request, an account of all his
transactions as Treasurer and on the financial condition of the Corporation. The
Treasurer shall in general perform all the duties incident to the office of
Treasurer and such other duties as from time to time may be assigned to him by
the President or by the Board of Directors. If required by the Board of
Directors, the Treasurer shall give a bond (which shall be renewed regularly),
in such sum and with such surety or sureties as the Board of Director shall
determine for the faithful discharge of his duties and for the restoration to
the Corporation, in case of his death, resignation, retirement or removal from
office, of all books, papers, vouchers, money and other property of whatever
kind in his possession or under his control belonging to the Corporation.

     Section 3.8.  The Secretary.  The Secretary shall (a) keep the minutes of
the Stockholders' and of the Board of Directors' meetings and committees of the
Board of Directors in one or more books provided for that purpose; (b) see that
all notices are duly given in accordance with the provisions of these By-Laws or
as required by law; (c) be custodian of the corporate records and of the seal of
the Corporation; (d) affix the seal of the Corporation or a facsimile thereof,
or cause it to be affixed and, when so affixed, attest the seal by his
signature, to all certificates for shares prior to the issue thereof and to all
documents the execution of which on behalf of the Corporation under its seal is
duly authorized by the Board of Directors or otherwise in accordance with the
provisions of these By-Laws (provided, however, the Board of Directors or the
President may give general authority to any other officer to affix the seal of
the Corporation and to attest the affixing by his signature); (e) keep a
register of the post office address of each stockholder, director or committee
member, which shall be furnished to the Secretary by such stockholder, director
or member; (f) have general charge of the stock transfer books of the
Corporation; and (g) in general

                                       8
<PAGE>

perform all duties incident to the office of Secretary and such other duties as
from time to time may be assigned to him by the President or the Board of
Directors.

     Section 3.9.  Assistant Treasurers and Secretaries.  In the absence of the
Secretary or in the event of his inability or refusal to act, the Assistant
Treasurers and Assistant Secretaries in the order determined by the Board of
Directors (or if there be no such determination, then in the order of their
election) shall perform the duties and exercise the powers of the Secretary. In
addition, the Assistant Treasurers and Assistant Secretaries shall, in general,
perform such duties as may be assigned to them by the President or the Board of
Directors. The Assistant Treasurers shall, respectively, if required by the
Board of Directors, give bonds (which shall be renewed regularly) for the
faithful discharge of their duties in such sums and with such sureties as the
Board of Directors shall determine.

     Section 3.10.  Salaries.  The salaries of the officers shall be fixed from
time to time by the Board of Directors or such officer as it shall designate for
such purpose or as it shall otherwise direct. No officer shall be prevented from
receiving such salary by reason of the fact that he is also a director of the
Corporation.

                                  ARTICLE IV
                    CONTRACTS, LOANS, CHECKS, AND DEPOSITS

     Section 4.1.  Contracts.  The Board of Directors may authorize any officer
or officers, agent or agents, to enter into any contract or execute and deliver
any instrument in the name of and on behalf of the Corporation, and such
authority may be general or confined to specific instances.

     Section 4.2.  Loans.  No loans shall be contracted on behalf of the
Corporation and no evidences of indebtedness shall be issued in the name of the
Corporation unless authorized by a resolution of the Board of Directors. Such
authority may be general or confined to specific instances.

     Section 4.3.  Checks, Drafts, Etc.  All checks, drafts or other order for
payment of money issued in the name of the Corporation shall be signed by such
officers, employees or agents of the Corporation as shall from time to time be
designated by the Board of Directors, the President, the chief financial officer
of the Corporation or the Treasurer.

     Section 4.4.  Deposits.  All funds of the Corporation not otherwise
employed shall be deposited form time to time to the credit of the Corporation
in such banks, trust companies or other depositories as shall be designated from
time to time by the Board of Directors, the President, the chief financial
officer of the Corporation or the Treasurer; and such officers may designate any
type of depository arrangement (including but not limited to depository
arrangements resulting in net debits against the Corporation) as from time to
time offered or available.

                                   ARTICLE V
                   CERTIFICATES OF STOCK AND THEIR TRANSFER

     Section 5.1.  Certificates of Stock.  Shares of stock of the Corporation
shall be represented by certificates which shall be in such form as may be
determined by the Board of Directors, shall be numbered and shall be entered in
the books of the Corporation as they are issued. They shall exhibit the holder's
name and number of shares and shall be signed by the President or a Vice
President and by the Treasurer or an Assistant Treasurer or the Secretary or an
Assistant Secretary. If any stock certificate is signed (a) by a transfer agent
or an assistant transfer agent or (b) by a transfer clerk acting on behalf of
the Corporation and a registrar, the signature of any officer of the Corporation
may be facsimile. In case any such officer whose facsimile signature has thus
been used on any such certificate shall cease to be such officer, whether
because of death, resignation or otherwise, before such certificate has been
delivered by the Corporation, such certificate may nevertheless be delivered by
the Corporation, as though the person whose facsimile signature has been used
thereon had not ceased to be such officer. All certificates properly surrendered
to the Corporation for transfer shall be cancelled and no new certificate shall
be issued to evidence transferred shares until the former certificate for at
least a like number of shares shall have been surrendered and cancelled and the
Corporation reimbursed for any applicable taxes on the transfer, except that in
the case of a lost,

                                       9
<PAGE>

destroyed or mutilated certificate a new one may be issued therefor upon such
terms, and with such indemnity (if any) to the Corporation, as the Board of
Directors may prescribe specifically or in general terms or by delegation to a
transfer agent for the Corporation.

     Section 5.2.  Lost, Stolen or Destroyed Certificates. The Board of
Directors in individual cases, or by general resolution or by delegation to the
transfer agent, may direct a new certificate or certificates to be issued in
place of any certificate or certificates theretofore issued by the Corporation
alleged to have been lost, stolen or destroyed, upon the making of an affidavit
of that fact by the person claiming the certificate of stock to be lost, stolen
or destroyed. When authorizing such issue of a new certificate or certificates,
the Board of Directors may, in its discretion and as a condition precedent to
the issuance thereof, require the owner of such lost, stolen or destroyed
certificates, or his legal representative, to advertise the same in such manner
as it shall require and/or to give the Corporation a bond in such sum as it may
direct as indemnity against any claim that may be made against the Corporation
with respect to the certificate alleged to have been lost, stolen or destroyed.

     Section 5.3.  Transfers of Stock.  Upon surrender to the Corporation or the
transfer agent of the Corporation of a certificate for shares duly endorsed or
accompanied by proper evidence of succession, assignment or authority to
transfer, and upon payment of applicable taxes with respect to such transfer,
and in compliance with any restrictions on transfer applicable to the
certificate or shares represented thereby of which the Corporation shall have
notice and subject to such rules and regulations as the Board of Directors may
from time to time deem advisable concerning the transfer and registration of
certificates for shares of capital stock of the Corporation, the Corporation
shall issue a new certificate to the person entitled thereto, cancel the old
certificate and record the transaction upon its books. Transfers of shares shall
be made only on the books of the Corporation by the registered holder thereof or
by his attorney or successor duly authorized as evidenced by documents filed
with the Secretary or transfer agent of the Corporation. Whenever any transfer
of shares shall be made for collateral security, and not absolutely, it shall be
so expressed in the entry of transfer if, when the certificates are presented to
the Corporation for transfer, both the transferor and transferee request the
Corporation to do so.

     Section 5.4.  Restrictions on Transfer.  Any stockholder may enter into an
agreement with other stockholders or with the Corporation providing for
reasonable limitation or restriction on the right of such stockholder to
transfer shares of capital stock of the Corporation held by him, including,
without limiting the generality of the foregoing, agreements granting to such
other stockholders or to the Corporation the right to purchase for a given
period of time any of such shares on terms equal to terms offered such
stockholders by any third party. Any such limitation or restriction on the
transfer of shares of the Corporation shall be set forth conspicuously on
certificates representing such shares or notice thereof may be otherwise given
to the Corporation or the transfer agent, in which case the Corporation or the
transfer agent shall not be required to transfer such shares upon the books of
the Corporation without receipt of satisfactory evidence of compliance with the
terms of such limitation or restriction.

     Section 5.5.  Stockholders of Record.  The Corporation shall be entitled to
treat the holder of record of any share or shares of stock as the holder in fact
thereof and accordingly, shall not be bound to recognize any equitable or other
claim to or interest in such share or shares on the part of any other person,
whether or not it shall have express or other notice thereof, except as
otherwise provided by the laws of the State of Delaware.

                                  ARTICLE VI
                              GENERAL PROVISIONS

     Section 6.1.  Fiscal Year.  The fiscal year of the Corporation shall begin
on the first day of January in each year and end on the thirty-first day of
December in each year.

     Section 6.2.  Seal.  The corporate seal shall have inscribed thereon the
name of the Corporation and the words "CORPORATE SEAL" and "DELAWARE"; and it
shall otherwise be in the form approved by the Board of Directors. Such seal may
be used by causing it, or a facsimile thereof, to be impressed or affixed or
otherwise reproduced.

                                      10
<PAGE>

                                  ARTICLE VII
                                    OFFICES

     Section 7.1.  Registered Office.  The registered office of the Corporation
in the State of Delaware shall be located at Corporation Trust Center, 1209
Orange Street in the City of Wilmington, County of New Castle, and the name of
its registered agent is the Corporation Trust Company.

     Section 7.2.  Other Offices.  The Corporation may have offices at such
other places both within or without the State of Delaware as shall be determined
from time to time by the Board of Directors or as the business of the
Corporation may require.

                                  ARTICLE VIII
                                INDEMNIFICATION

       Section 8.1.  General.  Each person who was or is made a party or is
threatened to be made a party to or is or was involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter a "proceeding"), by reason of the fact that he or she or a person
of whom he or she is the legal representative is or was a director, officer or
employee of the Corporation or is or was serving at the request of the
Corporation as a director, officer, employee or agent or another corporation or
of a partnership, joint venture, trust or other enterprise, including service
with respect to employee benefit plans, whether the basis of such proceeding is
alleged action in an official capacity as a director, officer, employee or agent
or in any other capacity while serving as a director, officer, employee or
agent, shall be indemnified and held harmless by the Corporation to the fullest
extent authorized by the Delaware General Corporation Law as the same exists or
may hereafter be amended (but, in the case of any such amendment, only to the
extent that such amendment permits the Corporation to provide broader
indemnification rights than said law permitted the Corporation to provide prior
to such amendment), against all expense, liability and loss (including
attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts
paid or to be paid in settlement) reasonably incurred or suffered by such person
in connection therewith and such indemnification shall continue as to a person
who has ceased to be a director, officer, employee or agent and shall inure to
the benefit of his or her heirs, executors and administrators; provided,
however, that except as provided in Section 8.2 of these By-Laws with respect to
proceedings seeking to enforce rights to indemnification, the Corporation shall
indemnify any such person seeking indemnification in connection with a
proceeding (or part thereof) initiated by such person only if such proceeding
(or part thereof) was authorized by the Board of Directors of the Corporation.
The right to indemnification conferred in this Article VIII shall be a contract
right and shall include the right to be paid by the Corporation the expenses
incurred in defending any such proceeding in advance of its final disposition;
provided, however, that if the Delaware General Corporation Law requires, the
payment of such expenses incurred by a director or officer in his or her
capacity as a director or officer (and not in any other capacity in which
service was or is rendered by such person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of a proceeding, shall be made only upon delivery to
the corporation of an undertaking by; or on behalf of such director or officer,
to repay all amounts so advanced if it shall ultimately be determined that such
director or officer is not entitled to be indemnified under this Article VIII or
otherwise.

     Section 8.2.  Expenses.  If a claim under Section 8.1 of these By-Laws is
not paid in full by the Corporation within thirty days after a written claim has
been received by the Corporation, the claimant may at any time thereafter bring
suit against the Corporation to recover the unpaid amount of the claim and, if
successful in whole or in part, the claimant shall be entitled to be paid also
the expense of prosecuting such claim.  It shall be a defense to any such action
(other than an action brought to enforce a claim for expenses incurred in
defending any proceeding in advance of its final disposition where the required
undertaking, if any is required, has been tendered to the Corporation) that the
claimant has not met the standards of conduct which made it permissible under
the Delaware General Corporation Law for the Corporation to indemnify the
claimant for the amount claimed, but the burden of proving such defense shall be
on the Corporation.  Neither the failure of the Corporation (including its Board
of Directors, independent legal counsel or stockholders) to have made a
determination prior to the commencement of such action that indemnification of
the claimant is proper in the circumstances because he or she has met the
applicable standard of conduct set forth in the Delaware General Corporation
Law, nor an actual determination by the Corporation (including its Board of
Directors, independent legal counsel or stockholders) that

                                       11
<PAGE>

the claimant has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that the claimant has not met the
applicable standard of conduct.

     Section 8.3.  Non-Exclusive.  The right to indemnification and the payment
of expenses incurred in defending a proceeding in advance of its final
disposition conferred in this Article VIII shall not be exclusive of any other
right which any person may have or hereafter acquire under any statute,
provision of the Certificate of Incorporation, By-Laws, agreement, vote of
stockholders or disinterested directors or otherwise.

     Section 8.4.  Insurance.  The Corporation may purchase and maintain
insurance or furnish similar protection, including, but not limited to,
providing a trust fund, letter of credit, or self-insurance, at its expense, to
protect itself and any director, officer, employee or agent of the Corporation
or another corporation, partnership, joint venture, trust or other enterprise
against any expense, liability or loss, whether or not the Corporation would
have the power to indemnify such person against such expense, liability or loss
under the General Corporation Law of the State of Delaware.

     Section 8.5.  Agent.  The Corporation may, to the extent authorized from
time to time by the Board of Directors, grant rights to indemnification, and
rights to be paid by the Corporation and expense incurred in defending any
proceeding in advance of its final disposition, to any agent of the Corporation
to the fullest extent of the provisions of this Article VIII with respect to the
indemnification and advancement of expenses of director, officers and employees
of the Corporation.

                                   ARTICLE IX
                                    NOTICES

     Section 9.1.  Manner of Notice.  Whenever under the provisions of the law
of the State of Delaware, the Certificate of Incorporation or these By-Laws
notice is required to be given to any stockholder, director or member of any
committee designated by the Board of Directors, it shall not be construed to
require personal delivery and such notice may be given in writing by depositing
it, in a sealed envelope, in the United States mails, air mail or first class,
postage prepaid, addressed (or by delivering it to a telegraph company, charges
prepaid, for transmission) to such stockholder, director or member as it appears
on the books of the Corporation or, in the case of such a director or member, at
his business address; and such notice shall be deemed to be given at the time
when it is thus deposited in the United States mails (or delivered to the
telegraph company).  Such requirement for notice shall be deemed satisfied,
except in the case of stockholder meetings with respect to which written notice
is mandatorily required by law, if actual notice is received orally or in
writing by the person entitled thereto as far in advance of the event with
respect to which notice is given as the minimum notice periods required by law
or these By-Laws.

     Whenever notice is required to be given under any provision of the
Certificate of Incorporation or these By-Laws to any stockholders to whom (i)
notice of two consecutive annual meetings, and all notices of meetings or of the
taking of action by written consent without a meeting to such person during the
period between such two consecutive annual meetings, or (ii) all, and at least
two, payments (if sent by first class mail) of dividends or interest on
securities during a twelve month period, have been mailed addressed to such
person at his address as shown on the records of the Corporation and have been
returned undeliverable, the giving of such notice to such person shall not be
required.  Any action or meeting which shall be taken or held without notice to
such person shall have the same force and effect as if such notice had been duly
given.

     Section 9.2.  Waiver of Notice.  Whenever any notice is required to be
given under the provisions of the laws of the State of Delaware, the Certificate
of Incorporation or these By-Laws, a waiver thereof in writing signed by the
person or persons entitled to such notice, whether before, at or after the time
stated therein, shall be deemed equivalent thereto.  Attendance by a person at a
meeting shall constitute a waiver of notice of such meeting, except when the
person attends a meeting for the express purpose of objecting, at the beginning
of the meeting, to the transaction of any business because the meeting is not
lawfully called or convened.  Neither the business to be transacted at, nor the
purpose of, any regular or special meeting of the stockholders, directors or
committee of directors need be specified in any written waiver of notice unless
so required by the laws of the State of Delaware, the Certificate of
Incorporation or these By-Laws.

                                       12
<PAGE>

                                   ARTICLE X
                                   DIVIDENDS

     The Board of Directors may from time to time declare, and the Corporation
may pay, dividends, in cash, in property, or in shares of the Corporation's
capital stock, on its outstanding shares in the manner and upon the terms and
conditions provided by law and by the Certificate of Incorporation.

                                   ARTICLE XI
                                   AMENDMENTS

     Except to the extent otherwise provided in the Certificate of Incorporation
or these By-Laws, these By-Laws shall be subject to alteration, amendment or
repeal, and new By-Laws may be adopted (i) by the affirmative vote of the
holders of not less than a majority of the voting power of all outstanding
shares of the Corporation entitled to vote generally in the election of
directors, (ii) by the affirmative vote of not less than a majority of the
members of the Board of Directors at any meeting of the Board of Directors at
which there is a quorum present and voting or (iii) by the unanimous written
consent of the Board of Directors acting in accordance with applicable law.

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