Document:

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                      RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                          HOUSEHOLD INTERNATIONAL, INC.

                         (as amended September 10, 2002)

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                          HOUSEHOLD INTERNATIONAL, INC.
                   RESTATED CERTIFICATE OF INCORPORATION INDEX

                  DATE                DESCRIPTION
                  ----                -----------

                  9/4/81              Restated Certificate of Incorporation

                  7/25/84             Certificate of Change of Address of
                                      Registered Office and of Registered Agent

                  5/13/87             Certificate of Amendment (Article VII)

                  10/14/92            Certificate of Designation, Preferences
                                      and Rights of 8-1/4% Cumulative Preferred
                                      Stock, Series 1992-A

                  5/12/93             Certificate of Amendment (Article IV)

                  9/1/93              Certificate of Designation, Preferences
                                      and Rights of 7.35% Cumulative Preferred
                                      Stock, Series 1993-A

                  7/9/96              Certificate of Designations of Series A
                                      Junior Participating Preferred Stock

                  5/14/97             Certificate of Amendment (Article IV)

                  5/13/98             Certificate of Amendment (Article IV)

                  6/30/98             Certificate of Designation, Preferences
                                      and Rights of 5% Cumulative Preferred
                                      Stock

                  6/30/98             Certificate of Designation, Preferences
                                      and Rights of $4.50 Cumulative Preferred
                                      Stock

                  6/30/98             Certificate of Designation, Preferences
                                      and Rights of $4.30 Cumulative Preferred
                                      Stock

                  9/20/01             Certificate of Designation, Preferences
                                      and Rights of 7.50% Cumulative Preferred
                                      Stock, Series 2001-A

                  3/18/02             Certificate of Designation, Preferences
                                      and Rights of 7.60% Cumulative Preferred
                                      Stock, Series 2002-A

                  9/10/02             Certificate of Designation, Preferences
                                      and Rights of 7 5/8% Cumulative Preferred
                                      Stock, Series 2002-B

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                                    RESTATED
                          CERTIFICATE OF INCORPORATION
                                       OF
                          HOUSEHOLD INTERNATIONAL, INC

         This Restated Certificate of Incorporation was duly adopted by the
Board of Directors of Household International, Inc. in accordance with the
provisions of Section 245 of the General Corporation Law of the State of
Delaware. This Restated Certificate of Incorporation only restates and
integrates and does not further amend the provisions of the Corporation's
certificate of incorporation as heretofore amended or supplemented, and there is
no discrepancy between those provisions and the provisions of this Restated
Certificate of Incorporation. The original Certificate of Incorporation was
filed with the Secretary of State on Delaware of February 20, 1981.

                                    ARTICLE I

         The name of the Corporation is Household International, Inc.

                                   ARTICLE II

         The address of the Corporation's registered office in the State of
Delaware is 100 West Tenth Street, Wilmington, Delaware 19899. The name its
registered agent at such address is The Corporation Trust Company, in the county
of New Castle.

                                   ARTICLE III

         The Corporation is to engage in any lawful act or activity for which
corporations may be organized under the General Corporation Law of Delaware.

                                   ARTICLE IV

         The total number of shares that may be issued by the Corporation is
75,655,004 of which 8,155,004 shares shall be Preferred Stock without par value
and 67,500,000 shares shall be Common Stock of the par value of $1 per share.

         The 8,155,004 shares of Preferred Stock may be issued from time to time
in one or more series, which may have such designations, powers, preferences and
relative, participating, optional or other special rights, and qualifications,
limitations or restrictions thereof, as shall be stated in the resolution or
resolutions (authorizing resolutions) providing for the issue of such shares
adopted by the Board of Directors. Without otherwise limiting the generality of
the foregoing provisions, the Board of Directors is expressly authorized to
provide, with respect to each such series, that:

         (a) the shares of such series shall be subject to redemption (including
redemption through a sinking fund of analogous fund) at such time or times and
at such price or prices as shall be stated in the authorizing resolutions;

         (b) the holders of the shares of such series shall be entitled to
receive dividends at such rates, on such conditions and at such times, payable
in preference, or in such relation, to the dividends payable on any other class
or classes or of any other series of stock of the Corporation, and cumulative or
non-cumulative, all as shall be stated in the authorizing resolutions;

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         (c) the holders of the shares of such series shall be entitled to such
rights upon the dissolution, or upon any distribution of the assets, of the
Corporation as shall be stated in the authorizing resolutions;

         (d) the shares of such series shall be convertible into, or
exchangeable for, shares of any other class or classes of stock, or of any
series thereof, of the Corporation at such price or prices or at such rate or
rates and with such adjustments, all as shall be stated in the authorizing
resolutions;

         (e) the shares of such series shall have such voting powers, full or
limited, or no voting powers, as shall be stated in the authorizing resolutions.

         The following is a statement of the powers, preferences, and rights,
and the qualifications, limitations or restrictions thereof, in respect of the
Preferred Stock, except such thereof as the Board of Directors is herein
authorized to provide for, and in respect of the Common Stock:

         (1) Except as otherwise provided in authorizing resolutions creating
series of Preferred Stock, each share of Preferred Stock shall rank on a parity
with each other share of Preferred Stock, regardless of series, in preference to
the Common Stock, with respect to the payment of dividends at the respectively
designated rates. No dividend shall be declared or paid on the shares of any
particular series of Preferred Stock unless at the same time a dividend in like
proportion to the respectively designated dividend rates shall be declared or
paid on the shares of each other series of Preferred Stock then issued and
outstanding ranking prior to or on a parity with such particular series with
respect to the payment of dividends. Except as otherwise provided in the
authorizing resolutions creating additional series of Preferred Stock, each
share of Preferred Stock shall rank on a parity with each other share of
Preferred Stock, regardless of series, in preference to the Common Stock, with
respect to the distribution of assets according to the amounts to which the
shares of the respective series are thereupon entitled.

         (2) The holders of shares of the Preferred Stock shall be entitled to
receive, when and as declared by the Board of Directors, out of any funds
legally available for that purpose, dividends in cash at such respective rates,
payable on such dates in each year and in respect of such dividend periods, all
as stated in the authorizing resolutions, before any dividends shall be declared
or paid or set apart for payment upon the Common Stock. Dividends on the shares
of each series of the Preferred Stock shall be cumulative or non-cumulative and,
if cumulative, shall be cumulative from such date, all as stated in the
authorizing resolutions.

         (3) The whole or any part of the Preferred Stock, of any one or more
series, redeemable pursuant to provisions stated in the respective authorizing
resolutions, at the time outstanding, may, at the option of the Board of
Directors, be redeemed, in accordance with such authorizing resolutions, at any
time or from time to time, by the payment or by making provision for payment of
such price or prices per share in the case of every such redemption as shall be
stated in such authorizing resolutions, and, in every case, a sum equal to
accrued and unpaid dividends, if any, with respect to each such share to be so
redeemed, at the rate of the dividends fixed therefor, to the date fixed for
redemption.

         In case of redemption of a part only of any series of the Preferred
Stock at the time outstanding, such redemption shall be made by lot or pro rata
in such manner as may be prescribed by resolution of the Board of Directors. The
Board of Directors shall have full power and authority,

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subject to the limitations and provisions herein contained and stated in the
respective authorizing resolutions, to prescribe the manner in which and the
terms and conditions upon which Preferred Stock shall be redeemed from time to
time.

         Notice of the Corporation's intention to redeem Preferred Stock,
specifying the date of redemption, shall be published in newspapers of general
circulation in New York, New York, and Chicago, Illinois, and shall be mailed
not less than forty-five nor more than ninety days before the redemption date to
the holders of record of such stock to be redeemed at their respective addresses
as the same shall appear on the books of the Corporation, and, if less than all
the shares owned by any such stockholder are then to be redeemed, the notice
shall specify the number of shares thereof which are to redeemed.

         If notice shall be given as aforesaid and the funds necessary to redeem
such stock shall have been set aside by the Corporation (other than by the trust
deposit hereinafter provided for) separate and apart from its other funds for
the benefit of the holders of the shares called for redemption, such stock shall
be redeemed upon such date of redemption and shall cease to be outstanding; the
right to receive dividends thereon shall cease to accrue from and after such
date of redemption and all rights of holders of the Preferred Stock so called
for redemption shall forthwith on such redemption date cease and terminate
except only the right of the holders thereof, upon presentation and surrender of
their respective certificates representing said shares, to receive the
redemption price therefor but without interest, and the right of conversion, if
any.

         Anything herein contained to the contrary notwithstanding, if notice
shall be given as aforesaid and before the redemption date an amount sufficient
to redeem the shares so called for redemption shall be deposited in trust to be
applied to such redemption with a bank or with bankers authorized to conduct
banking business or with a trust company, in the Borough of Manhattan, City of
New York, or in the City of Chicago, having a combined capital and surplus of at
least $5,000,000, then, from and after the date of such deposit, such shares
shall be deemed to be redeemed and to cease to be outstanding, and all rights of
the holders of the shares called for redemption, as stockholders of the
Corporation, shall cease except (i) the right, upon presentation and surrender
of their respective certificates representing said shares, to receive from such
bank or bankers or trust company on or after such redemption date the moneys so
deposited in trust, but without interest, and (ii) the right of conversion, if
any. The Corporation shall be entitled to any interest payable on the funds so
deposited. Any redemption funds unclaimed at the end of six years shall be
repaid to the Corporation, after which holders of the redeemed shares shall look
only to the Corporation for payment of the redemption price, but without
interest thereon.

         (4) In the event of any voluntary or involuntary liquidation,
dissolution, or winding up of the Corporation, the holders of the Preferred
Stock shall be entitled to be paid or to have set apart for payment such sum or
sums per share as shall be stated in the respective authorizing resolutions,
together in each case with a sum equal to accrued and unpaid dividends, if any,
at the rate of the dividends fixed therefor, to the date fixed for payment of
such price or prices, before any distribution or payment shall be made to the
holders of the Common Stock. No consolidation or merger of the Corporation with
another corporation or corporations and no sale by the Corporation of its assets
as an entirety or substantially as an entirety shall be deemed to be a
liquidation, dissolution, or winding up on the Corporation within the meaning of
this subdivision (4).

         (5) The Corporation shall not, without the consent (expressed either in
writing or by affirmative vote at a meeting called for the purpose) of the
holders of two-thirds of the then

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outstanding Preferred Stock of all series, other than series in respect of
which the authorizing resolutions expressly provide that such consent shall not
be required:

              (i) consolidate or merge with another corporation or corporations
         or sell it assets as an entirety or substantially as an entirety,
         provided, however, that the purchase for cash, stock, or otherwise by
         the Corporation of all or any part of the assets, stock or other
         securities of another corporation or corporations shall not be deemed
         to be a consolidation or merger;

              (ii) issue Preferred Stock of any series if there shall be
         cumulative dividends in arrears on outstanding Preferred Stock,
         irrespective of series;

              (iii) increase the authorized amount of the Preferred Stock, or
         create or issue any class of stock ranking prior to or on a parity with
         the Preferred Stock, or any series thereof, as to the payment of
         dividends or the distribution of assets;

              (iv) adopt any amendment to the Certificate of Incorporation of
         the Corporation which adversely alters any preference, power, or
         special right of the Preferred Stock, or of the holders thereof;
         provided, however, that if any such amendment would adversely alter any
         preference, power, or special right of one or more but not all of the
         series of the Preferred Stock or of the holders thereof, then the
         consent (expressed as above provided) only of the holders of two-thirds
         of the then outstanding shares of all series so affected, voting as a
         class, other than series in respect of which the authorizing
         resolutions expressly provide that such consent shall not be required,
         shall be required for the adoption of such amendment.

         (6) In the event that any four quarterly cumulative dividends, whether
consecutive or not, upon the Preferred Stock, or any series thereof, shall be in
arrears, the holders of Preferred Stock of all series, other than series in
respect of which the right is expressly withheld by the authorizing resolutions,
shall have the right, at the next meeting of stockholders called for the
election of directors, to elect one-third of the members of the Board of
Directors out of the number fixed by the by-laws, and the holders of such
Preferred Stock shall continue to have such right until all unpaid dividends
upon the Preferred Stock shall have been paid in full. In the event that any
eight quarterly cumulative dividends, whether consecutive or not, upon the
Preferred Stock, or any series thereof, shall be in arrears, the holders of
Preferred Stock of all series, other than series in respect of which the right
is expressly withheld by the authorizing resolutions, shall have the right, at
the next meeting of stockholders called by the election of directors, to elect a
majority of the members of the Board of Directors out of the numbers fixed by
the by-laws, and the holders of such Preferred Stock shall continue to have such
right until all unpaid dividends upon the Preferred Stock shall have been paid
in full.

         (7) The holders of the Common Stock shall be entitled to vote at all
meetings of the stockholders and, subject to the rights of holders of Preferred
Stock to elect directors in accordance with the provisions of the foregoing
subdivision (6), shall be entitled to one vote for each share of Common Stock
held.

                                   ARTICLE V

         There is hereby created a series of Preferred Stock of the Corporation,
such series to be within the class of Preferred Stock authorized by Article IV
hereof; to be designated $6.25 Cumulative Convertible Voting Preferred Stock
(the "$6.25 Preferred Stock"); to consist of 3,454,635 shares; to

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have the powers, preferences and rights and the qualifications, limitations and
restrictions set forth in, and to be subject to all of the terms and provisions
of, Article IV hereof (except to the extent that the same may be inconsistent
with this Article V); and to have the following additional powers, preferences,
rights, qualifications, limitations, restrictions, terms and provisions:

         (a) $6.25 per share is fixed as the amount per annum at which the
holders of $6.25 Preferred Stock shall be entitled to receive dividends when and
as declared by the Board of Directors, such dividends to be paid only from
retained earnings of the Corporation; and such dividends shall be cumulative and
shall accrue, whether or not earned or declared, from the Issue Date (as
hereinafter defined), and shall be payable quarterly on the fifteenth day of
January, April, July and October in each year to holders of record on the
respective business days next preceding the first days of those months (and the
quarterly dividend periods shall commence on the first days of those months);
provided, however, that as to any shares of $6.25 Preferred Stock issued less
than 60 days prior to a dividend payment date, the dividend that would otherwise
by payable on such dividend payment date will be payable on the next succeeding
dividend payment date; and provided, further, that no dividend shall be declared
or paid if (i) the Corporation is insolvent or would be rendered insolvent by
payment of such dividend or (ii) the payment of such dividend would impair the
Corporation's capital (i.e., the fair market value of the remaining assets of
the Corporation would be less than the sum of its liabilities and the
liquidation value of any classes and series of its Preferred Stock ranking prior
to or on a parity with the $6.25 Preferred Stock). The "Issue Date" shall mean
the day on which occurs the merger of Wallace-Murray Corporation, a Delaware
corporation, into Household Acquisition Corporation Second, a Delaware
corporation, or other subsidiary of the Corporation. An "Anniversary Date" shall
mean any anniversary date of the Issue Date.

         (b) The shares of $6.25 Preferred Stock shall be subject to redemption
at the option of the Corporation at any time, and from time to time, in whole or
in part, at the redemption price of $50 per share plus the amount of accrued and
unpaid dividends, if any, thereon to the date fixed for redemption; provided,
however, that no such optional redemption shall be made unless (i) the date
fixed for redemption is on or after the fifth Anniversary Date, and (ii) at all
times during the twelve-month period terminating on the date on which notice of
such redemption is first given, the annualized rate of dividends in respect of
the outstanding shares of Common Stock of the Corporation shall have equalled or
exceeded the quotient obtained by dividing $6.25 by the conversion rate
specified in paragraph (d) hereof (as said conversion rate may have been
adjusted pursuant to the provisions of said paragraph). As used herein, the term
"annualized rate of dividends" shall mean, as of any particular time, the
aggregate per share amount of regular cash dividends (excluding special and
extraordinary dividends) paid on shares of the Common Stock of the Corporation
generally, in respect of the most recently completed twelve-month period.

         (c) The amount to which shares of $6.25 Preferred Stock shall be
entitled upon liquidation, dissolution, or winding up of the Corporation,
whether voluntary or involuntary, shall be $50 per share, plus the amount of
accrued and unpaid dividends, if any, thereon to the date fixed for payment, and
no more.

         (d) The shares of $6.25 Preferred Stock shall be convertible at any
time after issue at the option of the record holder thereof, in the manner
hereinafter provided, into fully paid and nonassessable shares of Common Stock
of the Corporation at the rate of 1.923 shares (adjusted to 2.327 shares as of
close of business on April 7, 1989 and 4.654 shares as of close of business on
October 15, 1993) of Common Stock for each share of $6.25 Preferred Stock;
provided, however, that as to any shares of $6.25 Preferred Stock which shall
have been called for redemption, the right

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of conversion shall terminate at the close of business on the fifth full
business day prior to the date fixed for redemption. No payment or adjustment
shall be made for dividends accrued on any shares of $6.25 Preferred Stock that
shall be converted or for dividends on any shares of Common Stock that shall be
issuable upon such conversion, but all dividends accrued and unpaid on such
shares of $6.25 Preferred Stock up to the dividend payment date immediately
preceding the date of conversion shall be payable to the converting shareholder,
and no dividend shall be paid upon the shares of Common Stock until the same
shall be paid or sufficient funds set apart for the payment thereof.

         The conversation rate provided for above shall be subject to the
following adjustments:

              (i) In case the Corporation shall declare and pay to the holders
         of the shares of Common Stock a dividend in shares of Common Stock, the
         conversion rate in effect immediately prior to the time fixed for the
         determination of shareholders entitled to such dividend shall be
         proportionately increased (adjusted to the nearest, or if there shall
         be no nearest then to the next lower, one-thousandth of a share of
         Common Stock), such adjustment to become effective immediately after
         the time fixed for such determination.

              (ii) In case the Corporation shall subdivide the outstanding
         shares of Common Stock into a greater number of shares of Common Stock
         or combine the outstanding shares of Common Stock into a smaller number
         of shares of Common Stock, the conversion rate in effective immediately
         prior to such subdivision or combination, as the case may be, shall be
         proportionately increased or decreased (adjusted to the nearest, or if
         there shall be no nearest then to the next lower, one-thousandth of a
         share of Common Stock), as the case may require, such increase or
         decrease, as the case may be, to become effective when such subdivision
         or combination becomes effective.

              (iii) In case of any reclassification or change of outstanding
         shares of Common Stock of the class issuable upon conversion of the
         shares of $6.25 Preferred Stock, or in case of any consolidation of
         merger of the Corporation with or into another corporation, or in case
         of any sale or conveyance to another corporation of all or
         substantially all of the property of the Corporation, the holder of
         each share of $6.25 Preferred Stock then outstanding shall have the
         right thereafter, so long as his conversion right hereunder shall
         exist, to convert such share into the kind and amount of shares of
         stock and other securities and property receivable upon such
         reclassification, change, consolidation, merger, sale or conveyance by
         a holder of the number of shares of Common Stock of the Corporation
         into which such shares of $6.25 Preferred Stock might have been
         converted immediately prior to such reclassification, change,
         consolidation, merger, sale or conveyance, and shall have no other
         conversion rights under these provisions; provided, however, that
         effective provision shall be made, in the Articles or Certificate of
         Incorporation of the resulting, surviving, or successor corporation or
         otherwise, so that the provisions set forth herein for the protection
         of the conversion rights of the shares of $6.25 Preferred Stock shall
         thereafter be applicable, as nearly as reasonably may be, to any such
         other shares of stock and other securities and property deliverable
         upon conversion of the shares of $6.25 Preferred Stock remaining
         outstanding or other convertible preferred shares received by the
         holders in place thereof; and provided, further, that any such
         resulting, surviving, or successor corporation shall expressly assume
         the obligation to deliver, upon the exercise of the conversion
         privilege, such shares, securities, or property as the holders of the
         shares of $6.25 Preferred Stock remaining outstanding, or other
         convertible preferred shares received by the holders in place thereof,
         shall be entitled to receive pursuant to the provisions hereof, and to
         make provision for the protection of the conversion right as above
         provided. In

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         case securities or property other than shares of Common Stock shall be
         issuable or deliverable upon conversion as aforesaid, then all
         references in this paragraph shall be deemed to apply, so far as
         appropriate and as nearly as may be, to such other securities or
         property. The subdivision or combination of shares of Common Stock at
         any time outstanding into a greater or lesser number of shares of
         Common Stock (whether with or without par value) shall not be deemed to
         be a reclassification of the Common Stock of the Corporation for the
         purposes of this subparagraph (iii).

              (iv) Unless the holders of shares of the $6.25 Preferred Stock
         shall be issued subscription rights or warrants on a reasonably
         equivalent basis, in case the Corporation shall issue to the holders of
         shares of any class of its capital stock subscription rights or
         warrants entitling them to subscribe for or purchase shares of Common
         Stock at a price per share less than the Average Market Price (as
         hereinafter defined) at the time fixed for determination of
         shareholders entitled to such subscription rights or warrants, the
         conversion rate in effect immediately prior to the time of said
         determination shall be increased (adjusted to the nearest, or if there
         shall be no nearest then to the next lower, one-thousandth of a share
         of Common Stock) by multiplying said rate by a fraction of which the
         numerator shall be the sum of the number of shares of Common Stock
         outstanding at the time of such determination and the number of
         additional shares of Common Stock so offered for subscription or
         purchase, and of which the denominator shall be the sum of the number
         of shares of Common Stock outstanding at the time of such determination
         and the number of shares of Common Stock which the aggregate
         subscription price of the total number of shares so offered would
         purchase at the Average Market Price, such adjustment to become
         effective immediately after the time fixed for such determination;
         provided, however, that if such subscription rights or warrants shall
         have a term not exceeding 45 days and if any such subscription rights
         or warrants expire unexercised, then the conversion rate will be
         readjusted, effective immediately after the expiration of such term, to
         the conversion rate which would have obtained if such unexercised
         subscription rights or warrants had not been issued.

                  For the purposes of any computation under this subparagraph
         (iv) or subparagraph (v), the "Average Market Price" per share of
         Common Stock for any time shall be the average of the daily closing
         prices for the 30 consecutive business days commencing 45 business days
         before the time in question. The closing price for each day shall be
         the last sales price regular way or, in case no such sale takes place
         on such day, the average of the closing bid and asked prices regular
         way, in either case as recorded on the New York Stock Exchange (or, if
         the Common Stock is not regularly traded on the New York Stock
         Exchange, on the principal market or system on which trades in the
         Common Stock are recorded).

              (v) Unless the holders of shares of the $6.25 Preferred Stock
         shall be distributed evidences of indebtedness or other assets on a
         reasonably equivalent basis, in case the Corporation shall distribute
         to the holders of the shares of Common Stock evidences of indebtedness
         of the Corporation or other assets of the Corporation (other than cash
         dividends to the extent paid from retained earnings, dividends in
         shares of Common Stock or subscription rights or warrants entitling
         them to subscribe for or purchase shares of Common Stock, but including
         securities convertible into capital stock of the Corporation), the
         conversion rate in effect immediately prior to the time fixed for
         determination of shareholders entitled to such distribution shall be
         increased (adjusted to the nearest, or if there shall be no nearest
         then to the next lower, one-thousandth of a share of Common Stock) by
         multiplying said rate by a fraction of which the numerator shall be the
         number of shares of Common Stock

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         outstanding at the time of such determination and a number of shares of
         Common Stock having an aggregate Average Market Price at the time of
         such determination equal to the fair value (as determined by the Board
         of Directors of the Corporation in good faith) of the evidences of
         indebtedness or other assets so distributed, such adjustment to become
         effective immediately after the time fixed for such determination.

         Except as provided in the foregoing subparagraphs (i) through (v),
there shall be no adjustments to the conversion rate set forth above.

         In order to convert shares of $6.25 Preferred Stock into shares of
Common Stock, the holder thereof shall surrender the certificate or certificates
for shares of $6.25 Preferred Stock, duly endorsed to the Corporation or in
blank, at the office of any Transfer Agent for the shares of $6.25 Preferred
Stock (or such other place as may be designated by the Corporation), and shall
give written notice to the Corporation at said office that he elects to convert
the same and shall state in writing therein the name or names in which he wishes
the certificate or certificates for shares of Common Stock to be issued. The
Corporation shall, as soon as practicable thereafter, deliver at said office to
such holder of shares of $6.25 Preferred Stock or to his nominee or nominees, a
certificate or certificates for the number of full shares of Common Stock to
which he shall be entitled as aforesaid and shall make appropriate payment in
cash for any fractional shares. Shares of $6.25 Preferred Stock shall be deemed
to have been converted as of the date of the surrender of such shares for
conversion as provided above, and the person or persons entitled to receive the
shares of Common Stock issuable upon such conversion shall be treated for all
purposes as the record holder or holders of such shares of Common Stock on such
date.

         No fractions of shares of Common Stock shall be issued upon conversion,
but in lieu thereof the Corporation shall adjust such fractional interest by
payment to the holders of an amount in cash equal (computed to the nearest cent)
to the same fraction of the closing price (as defined in subparagraph (iv)
above) on the business day immediately preceding such conversion.

         A number of authorized shares of Common Stock sufficient to provide for
the conversion of the shares of $6.25 Preferred Stock outstanding upon the bases
hereinbefore provided shall at all times be reserved for such conversion.

         (e) There shall be a sinking fund (the "Sinking Fund") for the benefit
of the shares of $6.25 Preferred Stock. For the purposes of the Sinking Fund,
out of any net assets of the Corporation legally available therefor (but only
from retained earnings and subject to the provisions of the last sentence of
paragraph (2) of Article IV of the Certificate of Incorporation), before any
dividends, in cash or property, shall be paid or declared, or any distribution
ordered or made on the Common Stock of the Corporation, and before any shares of
Common Stock of the Corporation shall be purchased, redeemed, or otherwise
acquired for value by the Corporation or any subsidiary, the Corporation shall
have paid or set aside in cash annually on the day prior to each Anniversary
Date commencing with the tenth Anniversary Date, so long as there shall be
outstanding any shares of $6.25 Preferred Stock, an amount sufficient to redeem,
on the day prior to each such Anniversary Date prior to the thirtieth, 4% of the
number of shares of $6.25 Preferred Stock issued on the Issue Date (or such
lesser number as remains outstanding) and, on the day prior to the thirtieth
Anniversary Date, all such shares of $6.25 Preferred Stock as remain
outstanding, at a price of $50 per share plus the amount of accrued and unpaid
dividends, if any, thereon to the date so fixed for redemption; provided,
however, that there shall be allowed to the Corporation as a credit thereagainst
any shares of $6.25 Preferred Stock which the Corporation may have acquired (as
a result of the conversion of such shares or otherwise,

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which it may have redeemed pursuant to paragraph (b) hereof, or which it may
have redeemed pursuant to this paragraph (e) (otherwise than through the
operation of the Sinking Fund), which have not theretofore been used for the
purpose of any such credit or any credit against a redemption of $6.25 Preferred
Stock at the Corporation's election as hereinafter in this paragraph (e)
provided for and which shares shall have been set aside by the Corporation for
the purpose of the Sinking Fund; and provided, further, that no monies shall be
paid or set aside for the Sinking Fund if at the day prior to any such
Anniversary Date the Corporation is in arrears in respect of a sinking fund
obligation under any other series of Preferred Stock ranking prior to or on a
parity with the %6.25 Preferred Stock except to the extent that, in the case of
any series ranking on a parity with the $6.25 Preferred Stock, provision is made
for the payment or setting aside of monies for the Sinking Fund and for the
sinking funds of such other series in proportion to the respective aggregate
amounts then required to be paid or set aside therefor; and provided, further,
that no monies shall be paid or set aside for the Sinking Funk if (i) the
Corporation is insolvent or would be rendered insolvent by the payment of
setting aside of such monies or (ii) the payment or setting aside of such monies
would impair the Corporation's capital (i.e., the fair market value of the
remaining assets of the Corporation would be less than the sum of its
liabilities and the liquidation value of classes and series of its Preferred
Stock ranking prior to or on a parity with the $6.25 Preferred Stock). The
Sinking Fund shall be cumulative so that if on the day prior to any such
Anniversary Date, the net assets of the Corporation legally available therefor
or the retained earnings of the Corporation shall be insufficient to permit any
such amount be paid or set aside in full, or if for any other reason such amount
shall not have been paid or set aside, but without interest, before any
dividend, in cash or property, shall be paid or declared, or any other
distribution ordered or made, on the Common Stock of the Corporation, and before
any shares of Common Stock of the Corporation shall be purchased, redeemed or
otherwise acquired for value by the Corporation or by any subsidiary of the
Corporation. The Corporation may elect to redeem, on any Sinking Fund redemption
date, up to an additional 4% of the number of shares of $6.25 Preferred Stock
issued on the Issue Date, at a price of $50 per share plus the amount of accrued
and unpaid dividends, if any, thereon to the date fixed for redemption;
provided, however, that there shall be allowed to the Corporation as a credit
there against any shares of $6.25 Preferred Stock which the Corporation may have
acquired or redeemed otherwise than pursuant to paragraph (b) above and this
paragraph (e) which have not theretofore been used for the purpose of any such
credit or for the purpose of any credit against a redemption of $6.25 Preferred
Stock pursuant to the Sinking Fund. Such optional right shall not be cumulative
and, if unexercised in a particular year, may not be carried forward to
subsequent years.

         (f) The holders of $6.25 Preferred Stock shall be entitled to vote at
all meetings of the stockholders, and at each such meeting shall be entitled to
one vote for each share held.

         (g) To the extent that the Board of Directors is authorized to fix the
designations, powers, preferences and relative, participating, optional or other
special rights, and qualifications, limitations or restrictions thereof, in
respect of additional series of Preferred Stock, none of the preferences or
rights of any such additional series as fixed by the Board of Directors shall be
prior or superior in any respect to those of the $6.25 Preferred Stock. Without
limiting the rights conferred by paragraph (5) of Article IV of the Certificate
of Incorporation of the Corporation, the Corporation shall not, without the
consent of the holders of two-thirds of the then outstanding shares of $6.25
Preferred Stock, adopt any amendment to the Certificate of Incorporation of the
Corporation or take other action, whether by the Board of Directors or
stockholders, which adversely alters the preferences, powers and special rights
conferred by the provisions of paragraphs (b), d(iv), d(v) or (e) hereof.

                                       11
<PAGE>

                                   ARTICLE VI

         In furtherance, and not in limitation, of the powers conferred by
statute, the Board of Directors of the Corporation is expressly authorized:

              (1) To make, alter, amend and rescind the by-laws of the
         Corporation.

              (2) To determine from time to time, whether and to what extent,
         and at what times and places, and under what conditions and regulations
         the accounts and books of the Corporation (other than the stock ledger)
         or any of them shall be open to inspection of the stockholders; and no
         stockholder shall have any right to inspect any account, book or
         document of the Corporation, except as conferred by statute, unless
         authorized by a resolution of the stockholders then entitled to vote
         thereon or the Board of Directors.

         IN WITNESS WHEREOF, said Household International, Inc. has caused its
corporate seal to be hereunto affixed and this certificate to by signed by D. C.
Clark, its President, and attested by J. D. Pinkerton, its Secretary, this 4th
day of September, 1981.

                                            Household International, Inc.

                                            By: /s/ D. C. Clark
                                                ------------------
                                                President

[SEAL]

Attest:

By: /s/ J. D. Pinkerton
    ---------------------
    Secretary

                                       12
<PAGE>

                       CERTIFICATE OF CHANGE OF ADDRESS OF
                    REGISTERED OFFICE AND OF REGISTERED AGENT
             PURSUANT TO SECTION 134 OF TITLE 8 OF THE DELAWARE CODE

             To: DEPARTMENT OF STATE
                 Division of Corporations
                 Townsend Building
                 Federal Street
                 Dover, Delaware 19903

         Pursuant to the provisions of Section 134 of Title 8 of the Delaware
Code, the undersigned Agent for service of process, in order to change the
address of the registered office of the corporations for which it is registered
agent, hereby certifies that:

         1. The name of the agent is: The Corporate Trust Company

         2. The address of the old registered office was:

                                    100 West Tenth Street
                                    Wilmington, Delaware 19801

         3. The address to which the registered office is to be changed is:

                                    Corporation Trust Center
                                    1209 Orange Street
                                    Wilmington, Delaware 19801

            The new address will be effective on July 30, 1984.

         4. The names of the corporation represented by said agent are set forth
            on the list annexed to this certificate and made a part hereof by
            reference.

         IN WITNESS WHEREOF, said agent has caused this certificate to be signed
on its behalf by its Vice-President and Assistant Secretary this 25th day of
July, 1984.

                          THE CORPORATION TRUST COMPANY
                          (Name of Registered Agent)

                          By: Virginia Colwell
                              --------------------
Attest:                   (Vice-President)

Mick Nurman
-------------------------
(Assistant Secretary)

                                       13
<PAGE>

                  STATE OF DELAWARE - DIVISION OF CORPORATIONS

                          CHANGE OF ADDRESS FILING FOR

                      CORPORATION TRUST AS OF JULY 27, 1984

                                    DOMESTIC

         0908612 HOUSEHOLD INTERNATIONAL, INC.                02/21/1981 D DE

                                       14
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

                            CERTIFICATE OF AMENDMENT
                                       OF
                          CERTIFICATE OF INCORPORATION

         Household International, Inc., a corporation organized and existing
under the General Corporation Law of the State of Delaware, does hereby certify:

         FIRST: That the Restated Certificate of Incorporation, as heretofore
amended, of said Corporation has been further amended by inserting the following
as Article VII:

                                   ARTICLE VII

              (1) Elimination of Certain Liability of Directors. A director of
         the Corporation shall not be personally liable to the Corporation or
         its stockholders for monetary damages for breach of fiduciary duty as a
         director, except for liability (i) for any breach of the director's
         duty of loyalty to the Corporation or its stockholders, (ii) for acts
         or omissions not in good faith or which involve intentional misconduct
         or a knowing violation of law, (iii) under Section 174 of the Delaware
         General Corporation Law or successor provision, or (iv) for any
         transaction from which the director derived an improper personal
         benefit. Any repeal or amendment to this Section shall not adversely
         affect any right or protection of a director of the Corporation for any
         act or occurrence taking place prior to such repeal or amendment.

              (2) Indemnification and Insurance.

                   (a) Each person who was or is made a party or is threatened
         to be made a party to or is 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
         of another corporation or of a partnership, joint venture, trust, or
         other enterprise, including service with respect to employee benefit
         plans, 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 paragraph
         (b) hereof, 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 Section 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 upon delivery to the Corporation of an undertaking to repay
         all amounts so

                                       15
<PAGE>

         advanced if it shall ultimately be determined that such person is not
         entitled to be indemnified under this Section or otherwise. The
         Corporation may, by action of its Board of Directors, provide
         indemnification to agents of the Corporation with the same scope and
         effect as the foregoing indemnification of directors, officers, and
         employees.

                   (b) If a claim under paragraph (a) of this Section is not
         paid in full 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 has been tendered to the Corporation) that the claimant has
         not met the standards of conduct which make it permissible under the
         Delaware General Corporation Law and paragraph (a) of this Section 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 its 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 its stockholders) that 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.

                   (c) The right to indemnification and the payment of expenses
         incurred in defending a proceeding in advance of its final disposition
         conferred in this Section shall not be exclusive of any other right
         which any person may have or hereafter acquire under any statute,
         provision of this Certificate of Incorporation, bylaw, agreement,
         contract, vote of stockholders or disinterested directors, or
         otherwise.

                   (d) The Corporation may purchase and maintain insurance on
         behalf of any person who is or was a director, serving at the request
         of the Corporation as a director, officer, employee or agent of another
         corporation, partnership, joint venture, trust or other enterprise
         against any liability asserted against him and incurred by him in any
         such capacity, or arising out of his status as such, whether or not the
         Corporation would have the power to indemnify him against such
         liability under the provisions of this Section, the Delaware General
         Corporation Law, or otherwise.

         SECOND: That the aforesaid amendment of the Restated Certificate of
Incorporation of said Corporation, set forth in Paragraph FIRST hereinabove, has
been duly adopted in accordance with the provisions of Section 242 of the
General Corporation Law of the State of Delaware.

                                       16
<PAGE>

         IN WITNESS WHEREOF, the Corporation has caused its corporate seal to be
hereunto affixed and this certificate to be signed by D. C. Clark, its Chairman
of the Board and Chief Executive Officer, and J. D. Pinkerton, its Senior Vice
President-Administration and Secretary, this 13th day of May, 1987.

                                             HOUSEHOLD INTERNATIONAL, INC.
[SEAL]
                                             By: /s/ D. C. Clark
                                                 ------------------------------
                                                 Chairman of the Board and
Attest:                                          Chief Executive Officer

/s/ J. D. Pinkerton
--------------------------------------
Senior Vice President-Administration
and Secretary

                                       17
<PAGE>

                   CERTIFICATE OF HOUSEHOLD INTERNATIONAL, INC
                       UNDER SECTION 151(g) OF THE GENERAL
                    CORPORATION LAW OF THE STATE OF DELAWARE

         Household International, Inc., a Delaware corporation (hereinafter
referred to as the "Corporation"), does hereby certify that:

         1) the Corporation's 9-1/2% Cumulative Preferred Stock, Series 1991-A
(the "Preferred Stock") has been redeemed in its entirety and that no shares of
the Preferred Stock are outstanding as of the date hereof.

         2) the following resolution has been duly adopted by the Corporation's
Board of Directors:

                  "RESOLVED, that the officers of the Corporation are duly
         authorized to file a certificate with the Secretary of State of
         Delaware eliminating from the Corporation's Certificate of
         Incorporation all matters set forth in each Certificate of Designation,
         Preferences and Rights for the Preferred Stock and as permitted by the
         Certificate of Designation, Preferences and Rights for the Preferred
         Stock, such shares of Preferred Stock redeemed shall resume the status
         of authorized and unissued shares of the Corporation's preferred
         stock."

         Upon the effective date of the filing of this Certificate, it shall
eliminate from the Corporation's Certificate of Incorporation all matters set
forth in the Certificate of Designation, Preferences and Rights with respect to
the Corporation's 9-1/2% Cumulative Preferred Stock, Series 1991-A, and all of
such shares of 9-1/2% Cumulative Preferred Stock, Series 1991-A, shall resume
the status of authorized and unissued shares of the Corporation's class of
Preferred Stock.

         IN WITNESS WHEREOF, said Household International, Inc., has caused its
corporate seal to be hereunto affixed and this Certificate to be signed by Paul
R. Shay, its Secretary, and attested by Susan E. Casey, its Assistant Secretary,
this 14th day of March, 1997.

                                             HOUSEHOLD INTERNATIONAL, INC.

                                             By: /s/ P. R. Shay
                                                 ---------------------------
Attest:                                          Secretary

By: /s/ S. E. Casey
    -----------------------
    Assistant Secretary

                                       18
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                8-1/4% Cumulative Preferred Stock, Series 1992-A
                               (Without Par Value)

         HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing
under the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES
that the following resolutions were duly adopted by the Board of Directors of
the Corporation and by the Preferred Stock Committee of the Board of Directors,
pursuant to authority conferred upon the Board of Directors by the provisions of
the Restated Certificate of Incorporation, as amended, of the Corporation, and
pursuant to authority conferred upon the Preferred Stock Committee by the
resolutions of the Board of Directors set forth herein and in accordance with
Section 141(c) of the General Corporation Law of the State of Delaware.

         1. The Board of Directors has adopted the following resolutions
designating a Preferred Stock Committee of the Board of Directors and
authorizing the Preferred Stock Committee to act on behalf of the Board of
Directors (within certain limitations) in connection with the designation,
issuance and sale of shares in one or more series of Preferred Stock of the
Corporation.

                  "RESOLVED, that a Preferred Stock Committee of the Board of
         Directors is hereby designated which shall have and may exercise, to
         the fullest extent permitted by law, the full power and authority of
         the Board of Directors with respect to the issuance and sale of one or
         more new series of the Corporation's Preferred Stock without par value
         (each such series herein referred to as the "New Preferred Stock"),
         including, without limitation, establishing the purchase price
         therefor, and fixing the designations and any of the preferences,
         powers, rights (other than voting powers or voting rights which shall
         be fixed by the Board of Directors) and relative, participating,
         optional or other special rights and qualifications, limitations or
         restrictions thereof, of such shares of each series of New Preferred
         Stock, and fixing the number of shares of each series of New Preferred
         Stock.

                  "FURTHER RESOLVED, that the Preferred Stock Committee is
         authorized to take such additional actions and adopt such additional
         resolutions as it deems necessary or appropriate for the purpose of
         authorizing and implementing the issuance, offer, and sale for cash of
         New Preferred Stock, including, without limiting the generality of the
         foregoing, the authorization and execution of agreements (including
         underwriting agreements) relating to the offer and sale of New
         Preferred Stock, authorization and approval of listing applications
         (including amendments or supplements thereto) for the listing of such
         New Preferred Stock on a stock exchange, approval of forms of stock
         certificates and authorization of issuance of New Preferred Stock in
         uncertificated form, any actions which may be necessary to qualify the
         offering and sale of New Preferred Stock under Blue Sky Laws of the
         various states, any necessary filings with the Secretary of State of
         Delaware and other jurisdictions, and the appointment of a transfer
         agent.

                                       19
<PAGE>

                  "FURTHER RESOLVED, that notwithstanding the foregoing
         resolutions, the Preferred Stock Committee may not authorize the sale
         of New Preferred Stock for more than $150 million cash consideration in
         the aggregate, and the power and authority of the Preferred Stock
         Committee set forth in the preceding resolutions shall expire on
         December 31, 1994, unless extended by further action of the Board of
         Directors of the Corporation.

                  "FURTHER RESOLVED, that the members of the Preferred Stock
         Committee shall be D. C. Clark, E. P. Hoffman, and G. P. Osler. In the
         absence of Mr. Osler, A. E. Rasmussen is designated as an alternate
         member of the Preferred Stock Committee to serve in his place."

         2. The Board of Directors has adopted the following resolution
pertaining to the voting rights for series of Preferred Stock authorized for
issuance by the Preferred Stock Committee of the Board of Directors.

                  "RESOLVED, that holders of each series of the Corporation's
         New Preferred Stock which is authorized by the Preferred Stock
         Committee of the Board of Directors shall have no voting rights, and
         their consent shall not be required for taking any corporate action,
         except as otherwise set forth herein, or as otherwise required by law,
         and except as otherwise provided by the Board of Directors with respect
         to any particular series of New Preferred Stock.

                  The consent of the holders of the New Preferred Stock with
         respect to the matters set forth in sub-sections (i) and (iii) of
         paragraph (5) of Article IV of the Corporation's Restated Certificate
         of Incorporation ("Paragraph (5)") shall not be required, except with
         respect to the creation or issuance of any class of stock ranking prior
         to or on a parity with the New Preferred Stock, or any series thereof,
         as to the payment of dividends or the distribution of assets; but the
         other provisions of Paragraph (5) shall be applicable to the New
         Preferred Stock. The holders of the New Preferred Stock shall have no
         right to elect directors pursuant to paragraph (6) of Article IV of the
         Corporation's Restated Certificate of Incorporation ("Paragraph (6)"),
         such right hereby being expressly withheld.

                  In the event that any six quarterly cumulative dividends,
         whether consecutive or not, upon the New Preferred Stock shall be in
         arrears, the holders of the New Preferred Stock shall have the right,
         voting separately as a class with holders of shares of any one or more
         other series of Preferred Stock of the Corporation ranking on a parity
         with the New Preferred Stock either as to payment of dividends or the
         distribution of assets upon liquidation, dissolution, or winding up,
         whether voluntary or involuntary, and upon which like voting rights
         have been conferred and are then exercisable, at the next meeting of
         stockholders called for the election of directors, to elect two members
         of the Board of Directors. The right of such holders of such shares of
         the New Preferred Stock, voting separately as a class, to elect
         (together with the holders of shares of any one or more other series of
         Preferred Stock of the Corporation ranking on such a parity) members of
         the Board of Directors of the Corporation as aforesaid shall continue
         until such time as all dividends accumulated on such shares of the New
         Preferred Stock shall have been paid in full, at which time such right
         shall terminate, except as herein or by law expressly provided, subject
         to revesting in the event of each and every subsequent failure to pay
         dividends of the character above mentioned.

                  Upon any termination of the right of the holders of the New
         Preferred Stock as a class to elect directors as herein provided, the
         term of office of all directors so elected shall terminate immediately.
         If the office of any director elected by such holders voting as a class

                                       20
<PAGE>

         becomes vacant by reason of death, resignation, retirement,
         disqualification, removal from office or otherwise, the remaining
         director elected by such holders voting as a class may choose a
         successor who shall hold office for the unexpired term in respect of
         which such vacancy occurred. Whenever the term of office of the
         directors elected by such holders voting as a class shall end and the
         special voting powers vested in such holders as provided in this
         resolution shall have expired, the number of directors shall thereupon
         be such number as may be provided for in the Corporation's Bylaws
         irrespective of any increase made pursuant to the provisions of this
         resolution.

                  Until all unpaid dividends on the New Preferred Stock shall
         have been paid in full, and in order to permit the holders of the
         Corporation's $6.25 Cumulative Convertible Voting Preferred Stock, and
         any other series of Preferred Stock issued by the Corporation having
         the voting rights set forth in Paragraph (6) to exercise fully the
         right to elect directors as granted by and provided in Paragraph (6),
         the number of directors constituting the whole Board of Directors of
         the Corporation shall not be less than seven. If, upon any such
         arrearage in dividends, the number of directors constituting the whole
         Board of Directors shall be less than seven, the size of the Board of
         Directors shall, immediately prior to the next meeting of stockholders
         called for the election of directors, automatically be increased by
         such number as shall be necessary to cause the number of directors
         constituting the whole Board of Directors to be no less than seven.

                  To the extent that the Board of Directors is authorized to fix
         the designations, powers, preferences and relative, participating,
         optional or other special rights, and qualifications, limitations or
         restrictions thereof in respect of additional series of Preferred
         Stock, none of the preferences or rights of any such additional series
         as fixed by the Board of Directors shall rank prior to the New
         Preferred Stock as to payment of dividends or the distribution of
         assets upon liquidation, dissolution, or winding up, whether voluntary
         or involuntary, without consent of the holders of two-thirds of the
         outstanding shares of such series of New Preferred Stock voting as a
         class.

                  The foregoing voting provisions shall not apply to any series
         of New Preferred Stock if, at or prior to the time when the act with
         respect to which such vote would otherwise be required shall be
         effected, all outstanding shares of such series of New Preferred Stock
         shall have been redeemed or sufficient funds shall have been deposited
         in trust to effect such redemption.

                  On any item in which the holders of New Preferred Stock are
         entitled to vote, such holders shall be entitled to one vote for each
         share held."

         3. The Preferred Stock Committee of the Board of Directors has adopted
the following resolution pursuant to authority conferred upon the Preferred
Stock Committee of the Board of Directors by the resolution of the Board of
Directors set forth in paragraph 1 above of this Certificate of Designation,
Preferences and Rights:

                  "RESOLVED, that the issue of a series of Preferred Stock
         without par value of the Corporation is hereby authorized and the
         designation, preferences and privileges, relative, participating,
         optional and other special rights, and qualifications, limitations and
         restrictions thereof, in addition to those set forth in the Restated
         Certificate of Incorporation, as amended, of the Corporation, are
         hereby fixed as follows:

                                       21
<PAGE>

         8-1/4% Cumulative Preferred Stock, Series 1992-A

                  (1) Number of Shares and Designation. 50,000 shares of
         Preferred Stock without par value of the Corporation are hereby
         constituted as a series of Preferred Stock without par value and
         designated as 8-1/4% Cumulative Preferred Stock, Series 1992-A
         (hereinafter called the "8-1/4% Preferred Stock").

                  (2) Dividends. The holders of shares of the 8-1/4% Preferred
         Stock shall be entitled to receive cash dividends, when and as declared
         by the Board of Directors of the Corporation, out of assets legally
         available for such purpose, at the rate determined as provided below.
         Such dividends shall be cumulative from the date of original issue of
         such shares and shall be payable quarterly in arrears, when and as
         declared by the Board of Directors of the Corporation, on the fifteenth
         day of January, April, July and October in each year to holders of
         record on the respective business days next preceding the first days of
         those months (and the quarterly dividend periods shall commence on the
         first days of those months).

                  Dividends on the 8-1/4% Preferred Stock for quarterly dividend
         periods will be payable at the rate of 8-1/4% per annum from the date
         of original issue applied to the amount of $1,000 per share of 8-1/4%
         Preferred Stock. The amount of dividends payable on each share of
         8-1/4% Preferred Stock for each full quarterly dividend period shall be
         computed by dividing the dividend rate by four and applying the
         dividend rate to the amount of $1,000 per share. The amount of
         dividends payable for any dividend period shorter or longer than a full
         quarterly dividend period shall be computed on the basis of 30-day
         months, a 360-day year and the actual number of days elapsed in the
         period.

                  (3) Liquidation Preference. The amount to which shares of
         8-1/4% Preferred Stock shall be entitled upon liquidation, dissolution,
         or winding up of the Corporation, whether voluntary or involuntary,
         shall be $1,000 per share, plus an amount equal to all accrued and
         unpaid dividends, if any, thereon to the date fixed for payment, and no
         more.

                  (4) Redemption. The shares of 8-1/4% Preferred Stock shall be
         subject to redemption in whole or in part at the option of the
         Corporation on or after October 15, 2002, at $1,000 per share, plus an
         amount equal to all accrued and unpaid dividends, if any, thereon to
         the date fixed for redemption, and no more.

                  (5) Shares to be Retired. All shares of 8-1/4% Preferred Stock
         purchased or redeemed by the Corporation shall be retired and cancelled
         and shall be restored to the status of authorized but unissued shares
         of the class of Preferred Stock without par value, without designation
         as to series, and may thereafter be issued, but not as shares of 8-1/4%
         Preferred Stock.

                  (6) Conversion or Exchange. The holders of shares of 8-1/4%
         Preferred Stock shall not have any rights herein to convert such shares
         into or exchange such shares for shares of any other series of any
         class or classes of capital stock (or any other security) of the
         Corporation.

                  (7) Ranking. The 8-1/4% Preferred Stock shall rank on a parity
         with the Corporation's $6.25 Cumulative Convertible Voting Preferred
         Stock, 9-1/2% Cumulative

                                       22
<PAGE>

         Preferred Stock, Series 1989-A, Flexible Rate Auction Preferred Stock,
         Series A, Flexible Rate Auction Preferred Stock, Series B, 11-1/4%
         Enhanced Rate Cumulative Preferred Stock and 9-1/2% Cumulative
         Preferred Stock, Series 1991-A as to payment of dividends and
         distribution of assets upon liquidation, dissolution, or winding up,
         whether voluntary or involuntary, and shall rank prior to the
         Corporation's Common Stock and Series A Junior Participating Preferred
         Stock as to payment of dividends and distribution of assets upon
         liquidation, dissolution, or winding up, whether voluntary or
         involuntary, and prior to any other series of stock authorized to be
         issued by the Corporation which ranks junior to the $6.25 Cumulative
         Convertible Voting Preferred Stock, 9-1/2% Cumulative Preferred Stock,
         Series 1989-A, Flexible Rate Auction Preferred Stock, Series A,
         Flexible Rate Auction Preferred Stock, Series B, 11-1/4% Enhanced Rate
         Cumulative Preferred Stock and 9-1/2% Cumulative Preferred Stock,
         Series 1991-A as to payment of dividends and distribution of assets
         upon liquidation, dissolution, or winding up, whether voluntary or
         involuntary."

         IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by J. Richard Hull, Senior Vice
President-Secretary of the Corporation, and attested by John W. Blenke,
Assistant Secretary, this 14th day of October, 1992.

                                             HOUSEHOLD INTERNATIONAL, INC.

                                             By: /s/ J. Richard Hull
                                                 ----------------------
                                                 Senior Vice President-
                                                 Secretary
Attest:

/s/  John W. Blenke
------------------------
Assistant Secretary

                                       23
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

                            CERTIFICATE OF AMENDMENT
                                       OF
                          CERTIFICATE OF INCORPORATION

         Household International, Inc., a corporation organized and existing
under the General Corporation Law of the State of Delaware, does hereby certify:

         FIRST: That the Restated Certificate of Incorporation, as heretofore
amended, of said Corporation has been further amended by deleting, in its
entirety, the first paragraph of Article IV thereof and inserting the following
as the new first paragraph of Article IV:

                  The total number of shares that may be issued by the
         Corporation is 158,155,004 of which 8,155,004 shares shall be Preferred
         Stock without par value and 150,000,000 shares shall be Common Stock of
         the par value of $1 per share.

         SECOND: That the aforesaid amendment of the Restated Certificate of
Incorporation of said Corporation, set forth in Paragraph FIRST hereinabove, has
been duly adopted in accordance with the provisions of Section 242 of the
General Corporation Law of the State of Delaware.

         IN WITNESS WHEREOF, the Corporation has caused its corporate seal to be
hereunto affixed and this certificate to be signed by D. C. Clark, its Chairman
of the Board and Chief Executive Officer and J. W. Blenke, Assistant General
Counsel and Assistant Secretary, this 12th day of May, 1993.

                                             HOUSEHOLD INTERNATIONAL, INC.
[SEAL]
                                             By: /s/ D. C. Clark
                                                 -----------------------
                                                 Chairman of the Board and
                                                 Chief Executive Officer
Attest:

/s/ J. W. Blenke
------------------------
Assistant General Counsel and
Assistant Secretary

                                       24

<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                 7.35% Cumulative Preferred Stock, Series 1993-A
                               (Without Par Value)

     HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES that the
following resolutions were duly adopted by the Board of Directors of the
Corporation and by the Offering Committee of the Board of Directors, pursuant to
authority conferred upon the Board of Directors by the provisions of the
Restated Certificate of Incorporation, as amended, of the Corporation, and
pursuant to authority conferred upon the Offering Committee by the resolutions
of the Board of Directors set forth herein and in accordance with Section 141(c)
of the General Corporation Law of the State of Delaware.

     1. The Board of Directors on May 12, 1993 has adopted the following
resolutions designating an Offering Committee of the Board of Directors and
authorizing the Offering Committee to act on behalf of the Board of Directors
(within certain limitations) in connection with the designation, issuance and
sale of shares in one or more series of Preferred Stock, without par value, of
the Corporation:

          "FURTHER RESOLVED, that an Offering Committee of the Board of
     Directors is hereby designated which shall have and may exercise, to the
     fullest extent permitted by law, the full power and authority of the Board
     of Directors with respect to the issuance and sale of (i) the Common Stock,
     (ii) the Debt Securities or (iii) one ore more new series of the
     Corporation's Preferred Stock, including, without limitation, establishing
     the purchase price therefore, and fixing the designations and any of the
     preferences, powers, rights (other than voting powers or voting rights
     which shall be fixed by the Board of Directors) and relative,
     participating, optional or other special rights and qualifications,
     limitations or restrictions thereof, of such shares of each series of
     Preferred Stock; and

          "FURTHER RESOLVED, that notwithstanding the foregoing resolutions, the
     power and authority of the Offering Committee set forth in the preceding
     resolution shall expire on June 30, 1995, unless extended by further action
     of the Board of Directors of the Corporation; and

          "FURTHER RESOLVED, that the members of the Offering Committee shall be
     D. C. Clark, A. E. Rasmussen and G. P. Osler. In the absence of any of the
     named directors, any current director of the Corporation is designated as
     an alternate member of the Offering Committee to serve in such named
     director's place; and

          "FURTHER RESOLVED, that the Offering Committee is authorized to take
     such additional actions and adopt such additional resolutions as it deems
     necessary or appropriate for the purpose of authorizing and implementing
     the issuance, offer, and sale for cash of

                                       25
<PAGE>

     Preferred Stock, including, without limiting the generality of the
     foregoing, the authorization and execution of agreements (including
     underwriting agreements) relating to the offer and sale of Preferred Stock,
     approval of forms of stock certificates and authorization of issuance of
     Preferred Stock in uncertificated form, any actions which may be necessary
     to qualify the offering and sale of Preferred Stock under Blue Sky Laws of
     the various states, any necessary filings with the Secretary of State of
     Delaware and other jurisdictions, and the appointment of a transfer agent;
     and

          "FURTHER RESOLVED, that the Offering Committee is hereby empowered, in
     connection with the issuance and sale of any new series of the
     Corporation's Preferred Stock, to authorize the issuance and sale of
     depositary shares and depositary receipts for such depositary shares with
     respect to any such series of Preferred Stock, and to authorize the
     appointment of a depositary, registrar, and transfer agent for such
     depositary shares and depositary receipts, the execution of a depositary
     agreement, and any additional agreements or actions in connection therewith
     as the Offering Committee deems necessary or appropriate."

     2. The Board of Directors, on May 12, 1993, has adopted the following
resolution pertaining to the voting rights for series of Preferred Stock,
without par value, authorized for issuance by the Offering Committee of the
Board of Directors:

          "FURTHER RESOLVED, that holders of each series of the Corporation's
     Preferred Stock which is authorized by the Offering Committee of the Board
     of Directors shall have no voting rights, and their consent shall not be
     required for taking any corporate action, except as otherwise set forth
     herein or as otherwise required by law, and except as otherwise provided by
     the Board of Directors with respect to any particular series of Preferred
     Stock:

          The consent of the holders of the Preferred Stock with respect to the
     matters set forth in sub-sections (i) and (iii) of paragraph (5) of Article
     IV of the Corporation's Restated Certificate of Incorporation ("Paragraph
     (5)") shall not be required, except with respect to the creation or
     issuance of any class of stock ranking prior to or on a parity with the
     Preferred Stock, or any series thereof, as to the payment of dividends or
     the distribution of assets; but the other provisions of Paragraph (5) shall
     be applicable to the Preferred Stock. The holders of the Preferred Stock
     shall have no right to elect directors pursuant to paragraph (6) of Article
     IV of the Corporation's Restated Certificate of Incorporation ("Paragraph
     (6)"), such right hereby being expressly withheld.

          In the event that any six quarterly cumulative dividends, whether
     consecutive or not, upon the Preferred Stock shall be in arrears, the
     holders of the Preferred Stock shall have the right, voting separately as a
     class with holders of shares of any one or more other series of preferred
     stock of the Corporation ranking on a parity with the Preferred Stock
     either as to payment of dividends or the distribution of assets upon
     liquidation, dissolution, or winding up, whether voluntary or involuntary,
     and upon which like voting rights have been conferred and are then
     exercisable, at the next meeting of stockholders called for the election of
     directors, to elect two members of the Board of Directors. The right of
     such holders of such shares of the Preferred Stock, voting separately as a
     class, to elect (together with the holders of shares of any one or more
     other series of preferred stock of the Corporation ranking on such a
     parity) members of the Board of Directors of the Corporation as aforesaid
     shall continue until such time as all dividends accumulated on such shares
     of the Preferred Stock shall have been paid in full, at which time such
     right shall terminate, except as herein or by

                                       26
<PAGE>

     law expressly provided, subject to revesting in the event of each and every
     subsequent failure to pay dividends of the character above mentioned.

          Upon any termination of the right of the holders of the Preferred
     Stock as a class to elect directors as herein provided, the term of office
     of all directors so elected shall terminate immediately. If the office of
     any director elected by such holders voting as a class becomes vacant by
     reason of death, resignation, retirement, disqualification, removal from
     office or otherwise, the remaining director elected by such holders voting
     as a class may choose a successor who shall hold office for the unexpired
     term in respect of which such vacancy occurred. Whenever the term of office
     of the directors elected by such holders voting as a class shall end and
     the special voting powers vested in such holders as provided in this
     resolution shall have expired, the number of directors shall thereupon be
     such number as may be provided for in the Corporation's Bylaws irrespective
     of any increase made pursuant to the provisions of this resolution.

          Until all unpaid dividends on the Preferred Stock shall have been paid
     in full, and in order to permit the holders of the Corporation's $6.25
     Cumulative Convertible Voting Preferred Stock, and any other series of
     preferred stock issued by the Corporation having the voting rights set
     forth in Paragraph (6) to exercise fully the right to elect directors as
     granted by and provided in Paragraph (6), the number of directors
     constituting the whole Board of Directors of the Corporation shall not be
     less than seven. If, upon any such arrearage in dividends the number of
     directors constituting the whole Board of Directors shall be less than
     seven, the size of the Board of Directors shall, immediately prior to the
     next meeting of stockholders called for the election of directors,
     automatically be increased by such number as shall be necessary to cause
     the number of directors constituting the whole Board of Directors to be no
     less than seven.

          To the extent that the Board of Directors is authorized to fix the
     designations, powers, preferences and relative, participating, optional or
     other special rights, and qualifications, limitations or restrictions
     thereof in respect of additional series of preferred stock, none of the
     preferences or rights of any such additional series as fixed by the Board
     of Directors shall rank prior to the Preferred Stock as to payment of
     dividends or the distribution of assets upon liquidation, dissolution, or
     winding up, whether voluntary or involuntary, without the consent of the
     holders of two-thirds of the outstanding shares of such series of Preferred
     Stock voting as a class.

          The foregoing voting provisions shall not apply to any series of
     Preferred Stock, if at or prior to the time when the act with respect to
     which such vote would otherwise be required shall be effected, all
     outstanding shares of such series of Preferred Stock shall have been
     redeemed or sufficient funds shall have been deposited in trust to effect
     such redemption.

          On any item in which the holders of Preferred Stock are entitled to
     vote, such holders shall be entitled to one vote for each share held."

     3. The Offering Committee of the Board of Directors has on August 30, 1993
adopted the following resolution pursuant to authority conferred upon the
Offering Committee of the Board of Directors by the resolutions of the Board of
Directors set forth in paragraph 1 above of this Certificate of Designation,
Preferences and Rights:

                                       27
<PAGE>

          "RESOLVED, that the issue of a series of Preferred Stock without par
     value of the Corporation is hereby authorized and the designation,
     preferences and privileges, relative, participating, optional and other
     special rights, and qualifications, limitations and restrictions thereof,
     in addition to those set forth in the Restated Certificate of
     Incorporation, as amended, of the Corporation, are hereby fixed as follows:

          7.35% Cumulative Preferred Stock, Series 1993-A

          (1) Number of Shares and Designation. 100,000 shares of Preferred
     Stock without par value of the Corporation are hereby constituted as a
     series of Preferred Stock without par value and designated as 7.35%
     Cumulative Preferred Stock, Series 1993-A (hereinafter called the "7.35%
     Preferred Stock").

          (2) Dividends. The holders of shares of the 7.35% Preferred Stock
     shall be entitled to receive cash dividends, when and as declared by the
     Board of Directors of the Corporation, out of assets legally available for
     such purpose, at the rate determined as provided below. Such dividends
     shall be cumulative from the date of original issue of such shares and
     shall be payable quarterly in arrears, when and as declared by the Board of
     Directors of the Corporation, on the fifteenth day of January, April, July
     and October in each year to holders of record on the respective business
     days next preceding the first days of those months (and the quarterly
     dividend periods shall commence on the first days of those months).

          Dividends on the 7.35% Preferred Stock for quarterly dividend periods
     will be payable at the rate of 7.35% per annum from the date of original
     issue applied to the amount of $1,000 per share of 7.35% Preferred Stock.
     The amount of dividends payable on each share of 7.35% Preferred Stock for
     each full quarterly dividend period shall be computed by dividing the
     dividend rate by four and applying the dividend rate to the amount of
     $1,000 per share. The amount of dividends payable for any dividend period
     shorter or longer than a full quarterly dividend period shall be computed
     on the basis of 30-day months, a 360-day year and the actual number of days
     elapsed in the period.

          (3) Liquidation Preference. The amount to which shares of 7.35%
     Preferred Stock shall be entitled upon liquidation, dissolution, or winding
     up of the Corporation, whether voluntary or involuntary, shall be $1,000
     per share, plus an amount equal to all accrued and unpaid dividends, if
     any, thereon to the date fixed for payment, and no more.

          (4) Redemption. The shares of 7.35% Preferred Stock shall be subject
     to redemption in whole or in part at the option of the Corporation on or
     after October 15, 1998 at $1,000 per share, plus an amount equal to all
     accrued and unpaid dividends, if any, thereon to the date fixed for
     redemption, and no more.

          (5) Shares to be Retired. All shares of 7.35% Preferred Stock
     purchased or redeemed by the Corporation shall be retired and cancelled and
     shall be restored to the status of authorized but unissued shares of the
     class of Preferred Stock without par value, without designation as to
     series, and may thereafter be issued, but not as shares of 7.35% Preferred
     Stock.

          (6) Conversion or Exchange. The holders of shares of 7.35% Preferred
     Stock shall not have any rights herein to convert such shares into or
     exchange such shares for shares of

                                       28
<PAGE>

     any other series of any class or classes of capital stock (or any other
     security) of the Corporation.

          (7) Ranking. The 7.35% Preferred Stock shall rank on a parity with the
     Corporation's $6.25 Cumulative Convertible Voting Preferred Stock, 9-1/2%
     Cumulative Preferred Stock, Series 1989-A, Flexible Rate Auction Preferred
     Stock, Series B, 11-1/4% Enhanced Rte Cumulative Preferred Stock, 9-1/2%
     Cumulative Preferred Stock, Series 1991-A and 8-1/4% Cumulative Preferred
     Stock, Series 1992-A as to payment of dividends and distribution of assets
     upon liquidation, dissolution, or winding up, whether voluntary or
     involuntary, and shall rank prior to the Corporation's Common Stock and
     Series A Junior Participating Preferred Stock as to payment of dividends
     and distribution of assets upon liquidation, dissolution, or winding up,
     whether voluntary or involuntary, and prior to any other series of stock
     authorized to be issued by the Corporation which ranks junior to the $6.25
     Cumulative Convertible Voting Preferred Stock, 9-1/2% Cumulative Preferred
     Stock, Series 1989-A, Flexible Rate Auction Preferred Stock, Series B,
     11-1/4% Enhanced Rate Cumulative Preferred Stock, 9-1/2% Cumulative
     Preferred Stock, Series 1991-A and 8-1/4% Cumulative Preferred Stock,
     Series 1992-A as to payment of dividends and distribution of assets upon
     liquidation, dissolution, or winding up, whether voluntary or involuntary."

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by J. Richard Hull, Senior Vice
President-Secretary and General Counsel of the Corporation, and attested by John
W. Blenke, Assistant General Counsel and Assistant Secretary, this 1st day of
September, 1993.

                                              HOUSEHOLD INTERNATIONAL, INC.

                                              By: /s/ J. Richard Hull
                                                  -----------------------------
                                                  Senior Vice President-
                                                  Secretary and General Counsel
Attest:

/s/ John W. Blenke
-----------------------------
Assistant General Counsel and
Assistant Secretary

                                       29
<PAGE>

                           CERTIFICATE OF DESIGNATIONS

                                       Of

                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                       Of

                          HOUSEHOLD INTERNATIONAL, INC.

                         (Pursuant to Section 151 of the
                        Delaware General Corporation Law)

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

     Household International, Inc., a corporation organized and existing under
the General Corporation Law of the State of Delaware (hereinafter called the
"Corporation"), hereby certifies that the following resolution was adopted by
the Board of Directors of the Corporation as required by Section 151 of the
General Corporation Law at a meeting duly called and held on July 9, 1996:

     RESOLVED, that pursuant to the authority granted to and vested in the Board
of Directors of this Corporation (hereinafter called the "Board of Directors" or
the "Board") in accordance with the provisions of the Restated Certificate of
Incorporation, the Board hereby creates a series of Preferred Stock, without par
value (the "Preferred Stock"), of the Corporation and hereby states the
designation and number of shares, and fixes the relative rights, preferences,
and limitations thereof as follows:

     FURTHER RESOLVED, that pursuant to the authority granted to and vested in
the Board in accordance with the provisions of the Restated Certificate of
Incorporation, the consent of the holders of Series A Preferred Stock with
respect to the matters set forth in sub-sections (i) and (iii) of paragraph (5)
of Article IV of the Corporation's Restated Certificate of Incorporation
("Paragraph (5)") shall not be required; but the other provisions of Paragraph
(5) shall be applicable to the Series A Preferred Stock. The holders of the
Series A Preferred Stock shall have no right to elect directors per paragraph
(6) of Article IV of the Corporation's Restated Certificate of Incorporation,
such right hereby being expressly withheld:

Series A Junior Participating Preferred Stock:

          Section 1. Designation and Amount. The shares of such series shall be
designated as "Series A Junior Participating Preferred Stock" (the "Series A
Preferred Stock") and the number of shares constituting the Series A Preferred
Stock shall be 150,000. Such number of shares may be increased or decreased by
resolution of the Board of Directors; provided that no decrease shall reduce the
number of shares of Series A Preferred Stock to a number less than the number of
shares then outstanding plus the number of shares reserved for issuance upon the
exercise of outstanding options, rights or warrants or upon the conversion of
any outstanding securities issued by the Corporation convertible into Series A
Preferred Stock.

          Section 2. Dividends and Distributions.

                                       30
<PAGE>

          (A) Subject to the rights of the holders of any shares of any series
     of Preferred Stock (or any similar stock) ranking prior and superior to the
     Series A Preferred Stock with respect to dividends, the holders of shares
     of Series A Preferred Stock, in preference to the holders of Common Stock,
     par value $1.00 per share (the "Common Stock"), of the Corporation, and of
     any other junior stock, shall be entitled to receive, when, as and if
     declared by the Board of Directors out of funds legally available for the
     purpose, quarterly dividends payable in cash on the fifteenth day of
     January, April, July and October in each year (each such date being
     referred to herein as a "Quarterly Dividend Payment Date"), commencing on
     the first Quarterly Dividend Payment Date after the first issuance of a
     share or fraction of a share of Series A Preferred Stock, in an amount per
     share (rounded to the nearest cent) equal to the greater of (a) $1 or (b)
     subject to the provision for adjustment hereinafter set forth, 1,000 times
     the aggregate per share amount of all cash dividends, and 1,000 times the
     aggregate per share amount (payable in kind) of all non-cash dividends or
     other distributions, other than a dividend payable in shares of Common
     Stock or a subdivision of the outstanding shares of Common Stock (by
     reclassification of otherwise), declared on the Common Stock since the
     immediately preceding Quarterly Divided Payment Date or, with respect to
     the first Quarterly Dividend Payment Date, since the first issuance of any
     share or fraction of a share of Series A Preferred Stock. In the event the
     Corporation shall at any time declare or pay any dividend on the Common
     Stock payable in shares of Common Stock, or effect a subdivision or
     combination or consolidation of the outstanding shares of Common Stock (by
     reclassification or otherwise than by payment of a dividend in shares of
     Common Stock) into a greater or lesser number of shares of Common Stock,
     then in each such case the amount to which holders of shares of Series A
     Preferred Stock were entitled immediately prior to such event under case
     (b) of the preceding sentence shall be adjusted by multiplying such amount
     by a fraction, the numerator of which is the number of shares of Common
     Stock outstanding immediately after such event and the denominator of which
     is the number of shares of Common Stock that were outstanding immediately
     prior to such event.

          (B) The Corporation shall declare a dividend or distribution on the
     Series A Preferred Stock as provided in paragraph (A) of this Section
     immediately after it declares a dividend or distribution on the Common
     Stock (other than a dividend payable in shares of Common Stock); provided
     that, in the event no dividend or distribution shall have been declared on
     the Common Stock during the period between any Quarterly Dividend Payment
     Date and the next subsequent Quarterly Dividend Payment Date, a dividend of
     $1 per share on the Series A Preferred Stock shall nevertheless be payable
     on such subsequent Quarterly Dividend Payment Date.

          (C) Dividends shall begin to accrue and be cumulative on outstanding
     shares of Series A Preferred Stock from the Quarterly Dividend Payment Date
     next preceding the date of issue of such shares, unless the date of issue
     of such shares is prior to the record date for the first Quarterly Dividend
     Payment Date, in which case dividends on such shares shall begin to accrue
     from the date of issue of such shares, or unless the date of issue is a
     Quarterly Dividend Payment Date or is a date after the record date for the
     determination of holders of shares of Series A Preferred Stock entitled to
     receive a quarterly dividend and before such Quarterly Dividend Payment
     Date, in either of which events such dividends shall begin to accrue and be
     cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid
     dividends shall not bear interest. Dividends paid on the shares of Series A
     Preferred Stock in an amount less than the total amount of such dividends
     at the time accrued and payable on such shares shall be allocated pro rata
     on a share-by-share basis among all such shares at the

                                       31
<PAGE>

     time outstanding. The Board of Directors may fix a record date for the
     determination of holders of shares of Series A Preferred Stock entitled to
     receive payment of a dividend or distribution declared thereon, which
     record date shall be not more tan 60 days prior to the date fixed for the
     payment thereof.

          Section 3. Voting Rights. The holders of shares of Series A Preferred
Stock shall have the following voting rights;

          (A) Subject to the provision for adjustment hereinafter set forth,
     each share of Series A Preferred Stock shall entitle the holder thereof to
     1,000 votes on all matters submitted to a vote of the stockholders of the
     Corporation. In the event the Corporation shall at any time declare or pay
     any dividend on the Common Stock payable in shares of Common Stock, or
     effect a subdivision or combination or consolidation of the outstanding
     shares of Common Stock (by reclassification or otherwise than by payment of
     a dividend in shares of Common Stock) into a greater or lesser number of
     shares of Common Stock, then in each such case the number of votes per
     share to which holders of shares of Series A Preferred Stock were entitled
     immediately prior to such event shall be adjusted by multiplying such
     number by a fraction, the numerator of which is the number of shares of
     Common Stock outstanding immediately after such event and the denominator
     of which is the number of shares of Common Stock that were outstanding
     immediately prior to such event.

          (B) Except as otherwise provided herein, in any other Certificate of
     Designations creating a series of Preferred Stock or any similar stock, or
     by law, the holders of shares of Series A Preferred Stock and the holders
     of shares of Common Stock and any other capital stock of the Corporation
     having general voting rights shall vote together as one class on all
     matters submitted to a vote of stockholders of the Corporation.

          (C) Except as set forth herein, or as otherwise provided by law,
     holders of Series A Preferred Stock shall have no special voting rights and
     their consent shall not be required (except to the extent they are entitled
     to vote with holders of Common Stock as set forth herein) for taking any
     corporate action.

          (D) The consent of the holders of Series A Preferred Stock with
     respect to the matters set forth in sub-sections (i) and (iii) of paragraph
     (5) of Article IV of the Corporation's Restated Certificate of
     Incorporation ("Paragraph (5)") shall not be required; but the other
     provisions of Paragraph (5) shall be applicable to the Series A Preferred
     Stock. The holders of the Series A Preferred Stock shall have no right to
     elect directors pursuant to paragraph (6) of Article IV of the
     Corporation's Restated Certificate of Incorporation, such right hereby
     being expressly withheld.

          Section 4. Certain Restrictions.

          (A) Whenever quarterly dividends or other dividends or distributions
     payable on the Series A Preferred Stock as provided in Section 2 are in
     arrears, thereafter and until all accrued and unpaid dividends and
     distributions, whether or not declared, on shares of Series A Preferred
     Stock outstanding shall have been paid in full, the Corporation shall not:

                                       32
<PAGE>

               (i) declare or pay dividends, or make any other distributions, on
          any shares of stock ranking junior (either as to dividends or upon
          liquidation, dissolution or winding up) to the Series A Preferred
          Stock;

               (ii) declare or pay dividends, or make any other distributions,
          on any shares of stock ranking on a parity (either as to dividends or
          upon liquidation, dissolution or winding up) with the Series A
          Preferred Stock, except dividends paid ratably on the Series A
          Preferred Stock and all such parity stock on which dividends are
          payable or in arrears in proportion to the total amounts to which the
          holders of all such shares are then entitled;

               (iii) redeem or purchase or otherwise acquire for consideration
          shares of any stock ranking junior (either as to dividends or upon
          liquidation, dissolution or winding up) to the Series A Preferred
          Stock, provided that the Corporation may at any time redeem, purchase
          or otherwise acquire shares of any such junior stock in exchange for
          shares of any stock of the Corporation ranking junior (either as to
          dividends or upon dissolution, liquidation or winding up) to the
          Series A Preferred Stock; or

               (iv) redeem or purchase or otherwise acquire for consideration
          any shares of Series A Preferred Stock, or any shares of stock ranking
          on a parity with the Series A Preferred Stock, except in accordance
          with a purchase offer made in writing or by publication (as determined
          by the Board of Directors) to all holders of such shares upon such
          terms as the Board of Directors, after consideration of the respective
          annual dividend rates and other relative rights and preferences of the
          respective series and classes, shall determine in good faith will
          result in fair and equitable treatment among the respective series or
          classes.

          (B) The Corporation shall not permit any subsidiary of the Corporation
     to purchase or otherwise acquire for consideration any shares of stock of
     the Corporation unless the Corporation could, under paragraph (A) of this
     Section 4, purchase or otherwise acquire such shares at such time and in
     such manner.

          Section 5. Reacquired Shares. Any shares of Series A Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and cancelled promptly after the acquisition thereof. All such
shares shall upon their cancellation become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
subject to the conditions and restrictions on issuance set forth herein, in the
Certificate of Incorporation, or in any other Certificate of Designations
creating a series of Preferred Stock or any similar stock or as otherwise
required by law.

          Section 6. Liquidation, Dissolution or Winding Up. Upon any
liquidation, dissolution or winding up of the Corporation, no distribution shall
be made (1) to the holders of shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Series A
Preferred Stock unless, prior thereto, the holders of shares of Series A
Preferred Stock shall have received $1,000 per share, plus an amount equal to
accrued and unpaid dividends and distributions thereon, whether or not declared,
to the date of such payment, provided that the holders of shares of Series A
Preferred Stock shall be entitled to receive an aggregate amount per share,
subject to the provision for adjustment hereinafter set forth, equal to 1,000
times the aggregate amount to be distributed per share to holders of shares of
Common Stock, or (2) to the holders of shares of stock

                                       33
<PAGE>

ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Preferred Stock, except distributions made ratably
on the Series A Preferred Stock and all such parity stock in proportion to the
total amounts to which the holders of all such shares are entitled upon such
liquidation, dissolution or winding up. In the event the Corporation shall at
any time declare or pay any dividend on the Common Stock payable in shares of
Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the aggregate amount to which
holders of shares of Series A Preferred Stock were entitled immediately prior to
such event under the proviso in clause (1) of the preceding sentence shall be
adjusted by multiplying such amount by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

          Section 7. Consolidation, Merger, etc. In case the Corporation shall
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Series A Preferred Stock shall at the same time be similarly exchanged or
changed into an amount per share, subject to the provision for adjustment
hereinafter set forth, equal to 1,000 times the aggregate amount of stock,
securities, cash and/or any other property (payable in kind), as the case may
be, into which or for which each share of Common Stock is changed or exchanged.
In the event the Corporation shall at any time declare or pay any dividend on
the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the amount set forth in the preceding sentence with respect to the
exchange or change of shares of Series A Preferred Stock shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

          Section 8. No Redemption. The shares of Series A Preferred Stock shall
not be redeemable.

          Section 9. Rank. The Series A Preferred Stock shall rank, with respect
to the payment of dividends and the distribution of assets, junior to all series
of any other class of the Corporation's Preferred Stock.

          Section 10. Amendment. The Certificate of Incorporation of the
Corporation shall not be amended in any manner which would materially alter or
change the powers, preferences or special rights of the Series A Preferred Stock
so as to affect them adversely without the affirmative vote of the holders of at
least two-thirds of the outstanding shares of Series A Preferred Stock, voting
together as a single class.

                                       34
<PAGE>

     IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf
of the Corporation by its Chief Executive Officer or Chief Financial Officer and
attested by its Secretary this 9th day of July, 1996.

                                              /s/  William F. Aldinger
                                              ----------------------------
                                              Chief Executive Officer or
                                              Chief Financial Officer
Attest:

/s/  Paul R. Shay
--------------------------
Secretary

                                       35
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

                            CERTIFICATE OF AMENDMENT
                                       OF
                          CERTIFICATE OF INCORPORATION

     Household International, Inc., a corporation organized and existing under
the General Corporation Law of the State of Delaware, does hereby certify:

     FIRST: That the Restated Certificate of Incorporation, as heretofore
amended, of said Corporation has been further amended by deleting, in its
entirety, the first paragraph of Article IV thereof and inserting the following
as the new first paragraph of Article IV:

          The total number of shares that may be issued by the Corporation is
     258,155,004 of which 8,155,004 shares shall be Preferred Stock without par
     value and 250,000,000 shares shall be Common Stock of the par value of $1
     per share.

     SECOND: That the aforesaid amendment of the Restated Certificate of
Incorporation of said Corporation, set forth in Paragraph FIRST hereinabove, has
been duly adopted in accordance with the provisions of Section 242 of the
General Corporation Law of the State of Delaware.

     IN WITNESS WHEREOF, the Corporation has caused its corporate seal to be
hereunto affixed and this certificate to be signed by W. F. Aldinger, its
Chairman and Chief Executive Officer and P. R. Shay, Assistant General Counsel
and Secretary, this 14th day of May, 1997.

                                             HOUSEHOLD INTERNATIONAL, INC.
[SEAL]

                                             By: /s/  W. F. Aldinger
                                                 ----------------------------
                                                 Chairman and Chief Executive
                                                 Officer
Attest:

/s/  P. R. Shay
--------------------------
Assistant General Counsel and Secretary

                                       36
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

                            CERTIFICATE OF AMENDMENT
                                       OF
                          CERTIFICATE OF INCORPORATION

     Household International, Inc., a corporation organized and existing under
the General Corporation Law of the State of Delaware, does hereby certify:

     FIRST: That the Restated Certificate of Incorporation, as heretofore
amended, of said Corporation has been further amended by deleting, in its
entirety, the first paragraph of Article IV thereof and inserting the following
as the new first paragraph of Article IV:

          The total number of shares that may be issued by the Corporation is
     758,155,004 of which 8,155,004 shares shall be Preferred Stock without par
     value and 750,000,000 shares shall be Common Stock of the par value of $1
     per share.

     SECOND: That the number of shares constituting the Series A Junior
Participating Preferred Stock is increased to 750,000.

     THIRD: That the aforesaid amendments of the Restated Certificate of
Incorporation of said Corporation, set forth above have been duly adopted in
accordance with the provisions of Section 242 of the General Corporation Law of
the State of Delaware.

     IN WITNESS WHEREOF, the Corporation has caused its corporate seal to be
hereunto affixed and this certificate to be signed by W. F. Aldinger, its
Chairman and Chief Executive Officer and P. R. Shay, Assistant General Counsel
and Corporate Secretary, this 13th day of May, 1998.

                                            HOUSEHOLD INTERNATIONAL, INC.
[SEAL]
                                            By:  /s/  W. F. Aldinger
                                                 ----------------------------
                                                 Chairman and Chief Executive
Attest:                                          Officer

/s/  P. R. Shay
----------------------------
Assistant General Counsel and
Corporate Secretary

                                       37
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                          5% Cumulative Preferred Stock
                               (Without Par Value)

     HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES that the
following resolution was duly adopted by the Board of Directors of the
Corporation pursuant to authority conferred upon the Board of Directors by the
provisions of the Restated Certificate of Incorporation, as amended, of the
Corporation, and in accordance with Section 141(c) of the General Corporation
Law of the State of Delaware.

     1. The Board of Directors has on May 13, 1998 adopted the following
resolution:

     "RESOLVED, that the issue of a series of Preferred Stock of the Corporation
is hereby authorized and the designation, preferences and privileges, relative,
participating, optional and other special rights, and qualifications,
limitations and restrictions thereof, in addition to those set forth in the
Restated Certificate of Incorporation, as amended, of the Corporation, are
hereby fixed as follows:

                          5% Cumulative Preferred Stock

          (1) Number of Shares and Designation. 407,718 shares of Preferred
     Stock, without par value of the Corporation are hereby constituted as a
     series of Preferred Stock, without par value and designated as 5%
     Cumulative Preferred Stock (hereinafter called the "5% Preferred Stock").

          (2) Dividends. The holders of shares of the 5% Preferred Stock shall
     be entitled to receive cash dividends, when and as declared by the Board of
     Directors of the Corporation, out of assets legally available for such
     purpose, at the rate determined as provided below. Such dividends shall be
     cumulative from the date of original issue of such shares and shall be
     payable semi-annually in arrears, when and as declared by the Board of
     Directors of the Corporation, on the last day of June and December in each
     year to holders of record, in each case, on the last business day of the
     calendar month next preceding the dividend payment date (and the
     semi-annual dividend periods shall commence on the first day following each
     dividend payment date and end on the next succeeding dividend payment
     date).

          Dividends on the 5% Preferred Stock for semi-annual dividend periods
     will be payable at the rate of 5% per annum from the date of original
     issue. The amount of dividends payable on each share of 5% Preferred Stock
     for each full semi-annual dividend period shall be computed by dividing the
     dividend rate by two and applying the dividend rate to each outstanding
     share.

                                       38
<PAGE>

          (3) Liquidation Preference. The amount to which shares of 5% Preferred
     Stock shall be entitled upon liquidation, dissolution, or winding up of the
     Corporation, whether voluntary or involuntary, shall be $50.00 per share,
     plus an amount equal to all accrued and unpaid dividends, if any, thereon
     to the date fixed for payment, whether or not earned or declared, and no
     more. Such amount to be set apart from holders or paid to holders out of
     the assets of the Corporation before any distribution is made to or set
     apart for holders of the Corporation's Common Stock.

          (4) Redemption. (a) The shares of the 5% Preferred Stock shall be
     subject to redemption in whole or in part at the option of the Corporation,
     by vote of the Board of Directors, at $50.00 per share, plus an amount
     equal to all accrued and unpaid dividends, if any, thereon to the date
     fixed for redemption, whether or not earned or declared, and no more. If
     less than all of the outstanding shares of 5% Preferred Stock are to be
     redeemed, the shares to be redeemed shall be determined by lot in such
     usual manner and subject to such regulations as the Board of Directors in
     its sole discretion shall prescribe.

               (b) At least 30 days prior to the date fixed for the redemption
     of shares of the 5% Preferred Stock, a written notice shall be mailed to
     each holder of record of shares of 5% Preferred Stock to be redeemed in a
     postage prepaid envelope addressed to such holder at his post office
     address as shown on the records of the Corporation, notifying such holder
     of the election of the Corporation to redeem such shares stating the date
     fixed for redemption thereof (the "redemption date"), and calling upon such
     holder to surrender to the Corporation on the redemption date at the place
     designated in such notice his certificate or certificates representing the
     number of shares specified in such notice of redemption.

               (c) On or after the redemption date each holder of shares of 5%
     Preferred Stock to be redeemed shall present and surrender his certificate
     or certificates for such shares to the Corporation at the place designated
     in such notice and thereupon the redemption price of such shares shall be
     paid to or on the order of the person whose name appears on such
     certificate or certificates as the owner thereof and each surrendered
     certificate shall be canceled.

               (d) In case less than all the shares represented by any such
     certificate are redeemed, a new certificate shall be issued representing
     the unredeemed shares.

               (e) From and after the redemption date (unless default shall be
     made by the Corporation in payment of the redemption price) all dividends
     on the shares of 5% Preferred Stock designated for redemption in such
     notice shall cease to accrue, and all rights of the holders thereof as
     stockholders of the Corporation, except the right to receive the redemption
     price thereof upon the surrender of certificates representing the same,
     shall cease and determine and such shares shall not thereafter be
     transferred (except with the consent of the Corporation) on the books of
     the Corporation, and such shares shall not be deemed to be outstanding for
     any purpose whatsoever.

               (f) At its election, prior to the redemption date, the
     Corporation may deposit the redemption price of the shares of 5% Preferred
     Stock called for redemption in trust for the holders thereof with a bank or
     trust company (having a capital and surplus of not less than $1,000,000) in
     the City of Chicago, Illinois or in the Borough of Manhattan, City and
     State of New York or in any other city in which the Corporation at the time
     shall maintain a

                                       39
<PAGE>

     transfer agency with respect to such stock, in which case such redemption
     notice shall state the date of such deposit, shall specify the office of
     such bank or trust company as the place of payment of the redemption price,
     and shall call upon such holders to surrender the certificates representing
     such shares at such place on or after the date fixed in such redemption
     notice (which shall not be later than the redemption date) against payment
     of the redemption price. From and after the making of such deposit, the
     shares of 5% Preferred Stock so designated for redemption shall not be
     deemed to be outstanding for any purpose whatsoever, and the rights of the
     holders of such shares shall be limited to the right to receive the
     redemption price of such shares without interest, upon surrender of the
     certificates representing the same to the Corporation at said office of
     such bank or trust company.

               (g) Any moneys so deposited which shall remain unclaimed by the
     holders of such 5% Preferred Stock at the end of six years after the
     redemption date shall be returned by such bank or trust company to the
     Corporation after which the holders of the 5% Preferred Stock shall have no
     further interest in such moneys.

          (5) Shares to be Retired. All shares of 5% Preferred Stock purchased
     or redeemed by the Corporation shall be retired and cancelled and shall be
     restored to the status of authorized but unissued shares of the class of
     Preferred Stock without par value, without designation as to series, and
     may thereafter be issued, but not as shares of 5% Preferred Stock.

          (6) Conversion or Exchange. The holders of shares of 5% Preferred
     Stock shall not have any rights herein to convert such shares into or
     exchange such shares for shares of any other series of any class or classes
     of capital stock (or any other security) of the Corporation.

          (7) Voting Rights. (a) Each holder of 5% Preferred Stock shall be
     entitled to one vote for each share held on each matter submitted to a vote
     of stockholders of the Corporation and, except as otherwise herein or by
     law provided, the 5% Preferred Stock, the Common Stock of the Corporation,
     and any other capital stock of the Corporation at the time entitled
     thereto, shall vote together as one class, except that while the holders of
     5% Preferred Stock, voting as a class, are entitled to elect two directors
     as hereinafter provided, they shall not be entitled to participate with the
     Common Stock (or any other capital stock as stated above) in the election
     of any other directors.

               (b) In case at any time three or more full semi-annual dividends
     (whether consecutive or not) on the 5% Preferred Stock shall be in arrears,
     then during the period (the "Class Voting Period") commencing with such
     time and ending with the time when all arrears in dividends on the 5%
     Preferred Stock shall have been paid and the full dividend on the 5%
     Preferred Stock for the then current semi-annual dividend period shall have
     been declared and paid or set aside for payment, at any meeting of the
     stockholders of the Corporation held for the election of directors during
     the Class Voting Period, the holders of 5% Preferred Stock represented in
     person or by proxy at said meeting shall be entitled, as a class, to the
     exclusion of the holders of all other classes of stock of the Corporation,
     to elect two directors of the Corporation, each share of 5% Preferred Stock
     entitling the holder thereof to one vote.

               (c) Any director who shall have been elected by holders of 5%
     Preferred Stock or by any director so elected as herein contemplated, may
     be removed at any time during a Class Voting Period, either for or without
     cause, by, and only by, the affirmative votes of the holders of record of a
     majority of the outstanding shares of 5% Preferred Stock given at a

                                       40
<PAGE>

     special meeting of such stockholders called for the purpose, and any
     vacancy thereby created may be filled during such Class Voting Period by
     the holders of 5% Preferred Stock present in person or represented by proxy
     at such meeting. Any director to be elected by the Board of Directors of
     the Corporation to replace a director elected by holders of 5% Preferred
     Stock or elected by a director as provided for in this sentence shall be
     elected by the remaining director previously elected by the holders of 5%
     Preferred Stock. At the end of the Class Voting Period the holders of 5%
     Preferred Stock shall be automatically divested of all voting power vested
     in them under this resolution but subject always to the subsequent vesting
     hereunder of voting power in the holders of 5% Preferred Stock in the event
     of any similar default or defaults thereafter.

          (8) Ranking. The 5% Preferred Stock shall rank on a parity with the
     Corporation's 8-1/4% Cumulative Preferred Stock, Series 1992-A, 7.35%
     Cumulative Preferred Stock, Series 1993-A, $4.50 Cumulative Preferred Stock
     and $4.30 Cumulative Preferred Stock as to payment of dividends and
     distribution of assets upon liquidation, dissolution, or winding up,
     whether voluntary or involuntary, and shall rank prior to the Corporation's
     Common Stock and Series A Junior Participating Preferred Stock as to
     payment of dividends and distribution of assets upon liquidation,
     dissolution, or winding up, whether voluntary or involuntary, and prior to
     any other series of stock authorized to be issued by the Corporation which
     ranks junior to the Corporation's 8-1/4% Cumulative Preferred Stock, Series
     1992-A, 7.35% Cumulative Preferred Stock, Series 1993-A, $4.50 Cumulative
     Preferred Stock and $4.30 Cumulative Preferred Stock as to payment of
     dividends and distribution of assets upon liquidation, dissolution, or
     winding up, whether voluntary or involuntary.

          (9) Amendments. While any 5% Preferred Stock is outstanding, the
     Corporation shall not alter or change the preferences, special rights or
     powers of the 5% Preferred Stock so as to adversely affect the 5% Preferred
     Stock without the affirmative consent (given in writing or at a meeting
     duly called for the purpose) of the holders of at least two-thirds (2/3rds)
     of the aggregate number of shares of 5% Preferred Stock then outstanding.

     "FURTHER RESOLVED, that the Chairman, President, or any Vice President,
together with the Secretary or an Assistant Secretary, of the Corporation are
hereby authorized and directed to execute, acknowledge, file with the Delaware
Secretary of State, and record in New Castle County, Delaware, a Certificate of
Designation, Preferences and Rights of the 5% Preferred Stock when such officers
of the Corporation shall in their sole discretion consider such action to be
necessary or advisable; and

     "FURTHER RESOLVED, that the form of certificates for the 5% Preferred Stock
which form of certificate has been presented to this meeting, and a copy of
which the Secretary or an Assistant Secretary is instructed to mark for
identification and file with the corporate records, is hereby approved, the
facsimile signatures of the officers of the Corporation contained on the
certificates are adopted as the valid and binding signatures of the officers so
signing, and the proper corporate officers are authorized on behalf of and under
the corporate seal of the Corporation to execute and deliver the said
certificates in substantially the form presented with such changes therein as
may be approved by the officers executing the same, execution thereof to be
conclusive evidence of such approval; and

     "FURTHER RESOLVED, that application be made to the New York Stock Exchange,
Inc. (the "Exchange") for listing of the 5% Preferred Stock upon official notice
of issuance of the 5%

                                       41
<PAGE>

Preferred Stock and that Messrs. J. W. Blenke, P. R. Shay and P. D. Schwartz or
any counsel designated by any of the foregoing individuals, be and each hereby
are authorized and designated by the Corporation to appear before the Exchange
in furtherance of the listing of said 5% Preferred Stock, including authority to
file or make any such changes in the said applications or any agreements
relevant thereto and to execute any and all documents on behalf of the
Corporation as may be necessary or desirable to conform with the requirements
for listing; and

     "FURTHER RESOLVED, that the officers of the Corporation, or any counsel
designated thereby, are hereby severally authorized to execute on behalf of the
Corporation and file with appropriate authorities such applications, statements,
certificates, consents, and other documents as may be necessary for the
registration or qualification of the 5% Preferred Stock under the securities
laws of the states of the United States in which such securities are required to
be registered or qualified, and any actions having previously been taken are
hereby authorized, approved and ratified; and

     "FURTHER RESOLVED, that Harris Trust and Savings Bank ("Harris Bank") is
hereby appointed as transfer agent and registrar for the 5% Preferred Stock upon
such terms as the officers of the Corporation consider necessary or advisable;
and

     "FURTHER RESOLVED, that for the purpose of the original issue of the shares
of 5% Preferred Stock, Harris Bank, as the Corporation's transfer agent and
registrar, is authorized and directed to issue and is authorized to register and
deliver certificates representing an aggregate of up to 407,718 shares of 5%
Preferred Stock of the Corporation all in accordance with instructions from the
officers of the Corporation; and

     "FURTHER RESOLVED, that the 5% Preferred Stock shall be without par value;
and

     "FURTHER RESOLVED, that the officers of the Corporation are hereby
authorized and directed on behalf of the Corporation to take and cause to be
taken all action necessary or desirable to carry out the terms, implications and
intent of these resolutions, and to consummate the transactions contemplated
therein."

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by David A. Schoenholz,
Executive Vice President and Chief Financial Officer of the Corporation, and
attested by Patrick D. Schwartz, Associate General Counsel and Assistant
Secretary, this 30th day of June, 1998.

                                             HOUSEHOLD INTERNATIONAL, INC.

                                             By: /s/  David A. Schoenholz
                                                 --------------------------
                                                 Executive Vice President-
                                                 Chief Financial Officer
Attest:

/s/  Patrick D. Schwartz
---------------------------
Associate General Counsel and
Assistant Secretary

                                       42
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                        $4.50 Cumulative Preferred Stock
                               (Without Par Value)

     HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES that the
following resolution was duly adopted by the Board of Directors of the
Corporation pursuant to authority conferred upon the Board of Directors by the
provisions of the Restated Certificate of Incorporation, as amended, of the
Corporation, and in accordance with Section 141(c) of the General Corporation
Law of the State of Delaware.

     1. The Board of Directors has on May 13, 1998 adopted the following
resolution:

     "RESOLVED, that the issue of a series of Preferred Stock of the Corporation
is hereby authorized and the designation, preferences and privileges, relative,
participating, optional and other special rights, and qualifications,
limitations and restrictions thereof, in addition to those set forth in the
Restated Certificate of Incorporation, as amended, of the Corporation, are
hereby fixed as follows:

                        $4.50 Cumulative Preferred Stock

          (1) Number of Shares and Designation. 103,976 shares of Preferred
     Stock, without par value of the Corporation are hereby constituted as a
     series of Preferred Stock, without par value and designated as $4.50
     Cumulative Preferred Stock (hereinafter called the "$4.50 Preferred
     Stock").

          (2) Dividends. The holders of shares of the $4.50 Preferred Stock
     shall be entitled to receive cash dividends, when and as declared by the
     Board of Directors of the Corporation, out of assets legally available for
     such purpose, at the rate determined as provided below. Such dividends
     shall be cumulative from the date of original issue of such shares and
     shall be payable semi-annually in arrears, when and as declared by the
     Board of Directors of the Corporation, on the last day of June and December
     in each year to holders of record, in each case, on the last business day
     of the calendar month next preceding the dividend payment date (and the
     semi-annual dividend periods shall commence on the first day following each
     dividend payment date and end on the next succeeding dividend payment
     date).

          Dividends on the $4.50 Preferred Stock for semi-annual dividend
     periods will be payable at the rate of $4.50 per annum from the date of
     original issue. The amount of dividends payable on each share of $4.50
     Preferred Stock for each full semi-annual dividend period shall be computed
     by dividing the dividend rate by two and applying the dividend rate to each
     outstanding share.

                                       43
<PAGE>

          (3) Liquidation Preference. The amount to which shares of $4.50
     Preferred Stock shall be entitled upon liquidation, dissolution, or winding
     up of the Corporation, whether voluntary or involuntary, shall be $100.00
     per share, plus an amount equal to all accrued and unpaid dividends, if
     any, thereon to the date fixed for payment, whether or not earned or
     declared, and no more. Such amount to be set apart from holders or paid to
     holders out of the assets of the Corporation before any distribution is
     made to or set apart for holders of the Corporation's Common Stock.

          (4) Redemption. (a) The shares of the $4.50 Preferred Stock shall be
     subject to redemption in whole or in part at the option of the Corporation,
     by vote of the Board of Directors, at $103.00 per share, plus an amount
     equal to all accrued and unpaid dividends, if any, thereon to the date
     fixed for redemption, whether or not earned or declared, and no more. If
     less than all of the outstanding shares of $4.50 Preferred Stock are to be
     redeemed, the shares to be redeemed shall be determined by lot in such
     usual manner and subject to such regulations as the Board of Directors in
     its sole discretion shall prescribe.

               (b) At least 30 days prior to the date fixed for the redemption
     of shares of the $4.50 Preferred Stock, a written notice shall be mailed to
     each holder of record of shares of $4.50 Preferred Stock to be redeemed in
     a postage prepaid envelope addressed to such holder at his post office
     address as shown on the records of the Corporation, notifying such holder
     of the election of the Corporation to redeem such shares stating the date
     fixed for redemption thereof (the "redemption date"), and calling upon such
     holder to surrender to the Corporation on the redemption date at the place
     designated in such notice his certificate or certificates representing the
     number of shares specified in such notice of redemption.

               (c) On or after the redemption date each holder of shares of
     $4.50 Preferred Stock to be redeemed shall present and surrender his
     certificate or certificates for such shares to the Corporation at the place
     designated in such notice and thereupon the redemption price of such shares
     shall be paid to or on the order of the person whose name appears on such
     certificate or certificates as the owner thereof and each surrendered
     certificate shall be canceled.

               (d) In case less than all the shares represented by any such
     certificate are redeemed, a new certificate shall be issued representing
     the unredeemed shares.

               (e) From and after the redemption date (unless default shall be
     made by the Corporation in payment of the redemption price) all dividends
     on the shares of $4.50 Preferred Stock designated for redemption in such
     notice shall cease to accrue, and all rights of the holders thereof as
     stockholders of the Corporation, except the right to receive the redemption
     price thereof upon the surrender of certificates representing the same,
     shall cease and determine and such shares shall not thereafter be
     transferred (except with the consent of the Corporation) on the books of
     the Corporation, and such shares shall not be deemed to be outstanding for
     any purpose whatsoever.

               (f) At its election, prior to the redemption date, the
     Corporation may deposit the redemption price of the shares of $4.50
     Preferred Stock called for redemption in trust for the holders thereof with
     a bank or trust company (having a capital and surplus of not less than
     $1,000,000) in the City of Chicago, Illinois or in the Borough of
     Manhattan, City and State of New York or in any other city in which the
     Corporation at the time shall maintain

                                       44
<PAGE>

     a transfer agency with respect to such stock, in which case such redemption
     notice shall state the date of such deposit, shall specify the office of
     such bank or trust company as the place of payment of the redemption price,
     and shall call upon such holders to surrender the certificates representing
     such shares at such place on or after the date fixed in such redemption
     notice (which shall not be later than the redemption date) against payment
     of the redemption price. From and after the making of such deposit, the
     shares of $4.50 Preferred Stock so designated for redemption shall not be
     deemed to be outstanding for any purpose whatsoever, and the rights of the
     holders of such shares shall be limited to the right to receive the
     redemption price of such shares without interest, upon surrender of the
     certificates representing the same to the Corporation at said office of
     such bank or trust company.

               (g) Any moneys so deposited which shall remain unclaimed by the
     holders of such $4.50 Preferred Stock at the end of six years after the
     redemption date shall be returned by such bank or trust company to the
     Corporation after which the holders of the $4.50 Preferred Stock shall have
     no further interest in such moneys.

          (5) Shares to be Retired. All shares of $4.50 Preferred Stock
     purchased or redeemed by the Corporation shall be retired and cancelled and
     shall be restored to the status of authorized but unissued shares of the
     class of Preferred Stock without par value, without designation as to
     series, and may thereafter be issued, but not as shares of $4.50 Preferred
     Stock.

          (6) Conversion or Exchange. The holders of shares of $4.50 Preferred
     Stock shall not have any rights herein to convert such shares into or
     exchange such shares for shares of any other series of any class or classes
     of capital stock (or any other security) of the Corporation.

          (7) Voting Rights. (a) Each holder of $4.50 Preferred Stock shall be
     entitled to one vote for each share held on each matter submitted to a vote
     of stockholders of the Corporation and, except as otherwise herein or by
     law provided, the $4.50 Preferred Stock, the Common Stock of the
     Corporation, and any other capital stock of the Corporation at the time
     entitled thereto, shall vote together as one class, except that while the
     holders of $4.50 Preferred Stock, voting as a class, are entitled to elect
     two directors as hereinafter provided, they shall not be entitled to
     participate with the Common Stock (or any other capital stock as stated
     above) in the election of any other directors.

               (b) In case at any time three or more full semi-annual dividends
     (whether consecutive or not) on the $4.50 Preferred Stock shall be in
     arrears, then during the period (the "Class Voting Period") commencing with
     such time and ending with the time when all arrears in dividends on the
     $4.50 Preferred Stock shall have been paid and the full dividend on the
     $4.50 Preferred Stock for the then current semi-annual dividend period
     shall have been declared and paid or set aside for payment, at any meeting
     of the stockholders of the Corporation held for the election of directors
     during the Class Voting Period, the holders of $4.50 Preferred Stock
     represented in person or by proxy at said meeting shall be entitled, as a
     class, to the exclusion of the holders of all other classes of stock of the
     Corporation, to elect two directors of the Corporation, each share of $4.50
     Preferred Stock entitling the holder thereof to one vote.

               (c) Any director who shall have been elected by holders of $4.50
     Preferred Stock or by any director so elected as herein contemplated, may
     be removed at any time

                                       45
<PAGE>

     during a Class Voting Period, either for or without cause, by, and only by,
     the affirmative votes of the holders of record of a majority of the
     outstanding shares of $4.50 Preferred Stock given at a special meeting of
     such stockholders called for the purpose, and any vacancy thereby created
     may be filled during such Class Voting Period by the holders of $4.50
     Preferred Stock present in person or represented by proxy at such meeting.
     Any director to be elected by the Board of Directors of the Corporation to
     replace a director elected by holders of $4.50 Preferred Stock or elected
     by a director as provided for in this sentence shall be elected by the
     remaining director previously elected by the holders of $4.50 Preferred
     Stock. At the end of the Class Voting Period the holders of $4.50 Preferred
     Stock shall be automatically divested of all voting power vested in them
     under this resolution but subject always to the subsequent vesting
     hereunder of voting power in the holders of $4.50 Preferred Stock in the
     event of any similar default or defaults thereafter.

          (8) Ranking. The $4.50 Preferred Stock shall rank on a parity with the
     Corporation's 8-1/4% Cumulative Preferred Stock, Series 1992-A, 7.35%
     Cumulative Preferred Stock, Series 1993-A, 5% Cumulative Preferred Stock
     and $4.30 Cumulative Preferred Stock as to payment of dividends and
     distribution of assets upon liquidation, dissolution, or winding up,
     whether voluntary or involuntary, and shall rank prior to the Corporation's
     Common Stock and Series A Junior Participating Preferred Stock as to
     payment of dividends and distribution of assets upon liquidation,
     dissolution, or winding up, whether voluntary or involuntary, and prior to
     any other series of stock authorized to be issued by the Corporation which
     ranks junior to the Corporation's 8-1/4% Cumulative Preferred Stock, Series
     1992-A, 7.35% Cumulative Preferred Stock, Series 1993-A, 5% Cumulative
     Preferred Stock and $4.30 Cumulative Preferred Stock as to payment of
     dividends and distribution of assets upon liquidation, dissolution, or
     winding up, whether voluntary or involuntary.

          (9) Amendments. While any $4.50 Preferred Stock is outstanding, the
     Corporation shall not alter or change the preferences, special rights or
     powers of the $4.50 Preferred Stock so as to adversely affect the $4.50
     Preferred Stock without the affirmative consent (given in writing or at a
     meeting duly called for the purpose) of the holders of at least two-thirds
     (2/3rds) of the aggregate number of shares of $4.50 Preferred Stock then
     outstanding.

     "FURTHER RESOLVED, that the Chairman, President, or any Vice President,
together with the Secretary or an Assistant Secretary, of the Corporation are
hereby authorized and directed to execute, acknowledge, file with the Delaware
Secretary of State, and record in New Castle County, Delaware, a Certificate of
Designation, Preferences and Rights of the $4.50 Preferred Stock when such
officers of the Corporation shall in their sole discretion consider such action
to be necessary or advisable; and

     "FURTHER RESOLVED, that the form of certificates for the $4.50 Preferred
Stock which form of certificate has been presented to this meeting, and a copy
of which the Secretary or an Assistant Secretary is instructed to mark for
identification and file with the corporate records, is hereby approved, the
facsimile signatures of the officers of the Corporation contained on the
certificates are adopted as the valid and binding signatures of the officers so
signing, and the proper corporate officers are authorized on behalf of and under
the corporate seal of the Corporation to execute and deliver the said
certificates in substantially the form presented with such changes therein as
may be approved by the officers executing the same, execution thereof to be
conclusive evidence of such approval; and

                                       46
<PAGE>

     "FURTHER RESOLVED, that application be made to the New York Stock Exchange,
Inc. (the "Exchange") for listing of the $4.50 Preferred Stock upon official
notice of issuance of the $4.50 Preferred Stock and that Messrs. J. W. Blenke,
P. R. Shay and P. D. Schwartz or any counsel designated by any of the foregoing
individuals, be and each hereby are authorized and designated by the Corporation
to appear before the Exchange in furtherance of the listing of said $4.50
Preferred Stock, including authority to file or make any such changes in the
said applications or any agreements relevant thereto and to execute any and all
documents on behalf of the Corporation as may be necessary or desirable to
conform with the requirements for listing; and

     "FURTHER RESOLVED, that the officers of the Corporation, or any counsel
designated thereby, are hereby severally authorized to execute on behalf of the
Corporation and file with appropriate authorities such applications, statements,
certificates, consents, and other documents as may be necessary for the
registration or qualification of the $4.50 Preferred Stock under the securities
laws of the states of the United States in which such securities are required to
be registered or qualified, and any actions having previously been taken are
hereby authorized, approved and ratified; and

     "FURTHER RESOLVED, that Harris Trust and Savings Bank ("Harris Bank") is
hereby appointed as transfer agent and registrar for the $4.50 Preferred Stock
upon such terms as the officers of the Corporation consider necessary or
advisable; and

     "FURTHER RESOLVED, that for the purpose of the original issue of the shares
of $4.50 Preferred Stock, Harris Bank, as the Corporation's transfer agent and
registrar, is authorized and directed to issue and is authorized to register and
deliver certificates representing an aggregate of up to 103,976 shares of $4.50
Preferred Stock of the Corporation all in accordance with instructions from the
officers of the Corporation; and

     "FURTHER RESOLVED, that the $4.50 Preferred Stock shall be without par
value; and

     "FURTHER RESOLVED, that the officers of the Corporation are hereby
authorized and directed on behalf of the Corporation to take and cause to be
taken all action necessary or desirable to carry out the terms, implications and
intent of these resolutions, and to consummate the transactions contemplated
therein."

                                       47
<PAGE>

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by David A. Schoenholz,
Executive Vice President and Chief Financial Officer of the Corporation, and
attested by Patrick D. Schwartz, Associate General Counsel and Assistant
Secretary, this 30th day of June, 1998.

                                             HOUSEHOLD INTERNATIONAL, INC.

                                             By: /s/  David A. Schoenholz
                                                 --------------------------
                                                 Executive Vice President-
                                                 Chief Financial Officer
Attest:

/s/  Patrick D. Schwartz
---------------------------
Associate General Counsel and
Assistant Secretary

                                       48
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                        $4.30 Cumulative Preferred Stock
                               (Without Par Value)

     HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES that the
following resolution was duly adopted by the Board of Directors of the
Corporation pursuant to authority conferred upon the Board of Directors by the
provisions of the Restated Certificate of Incorporation, as amended, of the
Corporation, and in accordance with Section 141(c) of the General Corporation
Law of the State of Delaware.

     1. The Board of Directors has on May 13, 1998 adopted the following
resolution:

     "RESOLVED, that the issue of a series of Preferred Stock of the Corporation
is hereby authorized and the designation, preferences and privileges, relative,
participating, optional and other special rights, and qualifications,
limitations and restrictions thereof, in addition to those set forth in the
Restated Certificate of Incorporation, as amended, of the Corporation, are
hereby fixed as follows:

                        $4.30 Cumulative Preferred Stock

          (1) Number of Shares and Designation. 836,585 shares of Preferred
     Stock, without par value of the Corporation are hereby constituted as a
     series of Preferred Stock, without par value and designated as $4.30
     Cumulative Preferred Stock (hereinafter called the "$4.30 Preferred
     Stock").

          (2) Dividends. The holders of shares of the $4.30 Preferred Stock
     shall be entitled to receive cash dividends, when and as declared by the
     Board of Directors of the Corporation, out of assets legally available for
     such purpose, at the rate determined as provided below. Such dividends
     shall be cumulative from the date of original issue of such shares and
     shall be payable semi-annually in arrears, when and as declared by the
     Board of Directors of the Corporation, on the last day of March and
     September in each year to holders of record, in each case, on the last
     business day of the calendar month next preceding the dividend payment date
     (and the semi-annual dividend periods shall commence on the first day
     following each dividend payment date and end on the next succeeding
     dividend payment date).

          Dividends on the $4.30 Preferred Stock for semi-annual dividend
     periods will be payable at the rate of $4.30 per annum from the date of
     original issue. The amount of dividends payable on each share of $4.30
     Preferred Stock for each full semi-annual dividend period shall be computed
     by dividing the dividend rate by two and applying the dividend rate to each
     outstanding share.

                                       49
<PAGE>

          (3) Liquidation Preference. The amount to which shares of $4.30
     Preferred Stock shall be entitled upon liquidation, dissolution, or winding
     up of the Corporation, whether voluntary or involuntary, shall be $100.00
     per share, plus an amount equal to all accrued and unpaid dividends, if
     any, thereon to the date fixed for payment, whether or not earned or
     declared, and no more. Such amount to be set apart from holders or paid to
     holders out of the assets of the Corporation before any distribution is
     made to or set apart for holders of the Corporation's Common Stock.

          (4) Redemption. (a) The shares of the $4.30 Preferred Stock shall be
     subject to redemption in whole or in part at the option of the Corporation,
     by vote of the Board of Directors, at $100.00 per share, plus an amount
     equal to all accrued and unpaid dividends, if any, thereon to the date
     fixed for redemption, whether or not earned or declared, and no more. If
     less than all of the outstanding shares of $4.30 Preferred Stock are to be
     redeemed, the shares to be redeemed shall be determined by lot in such
     usual manner and subject to such regulations as the Board of Directors in
     its sole discretion shall prescribe.

               (b) At least 30 days prior to the date fixed for the redemption
     of shares of the $4.30 Preferred Stock, a written notice shall be mailed to
     each holder of record of shares of $4.30 Preferred Stock to be redeemed in
     a postage prepaid envelope addressed to such holder at his post office
     address as shown on the records of the Corporation, notifying such holder
     of the election of the Corporation to redeem such shares stating the date
     fixed for redemption thereof (the "redemption date"), and calling upon such
     holder to surrender to the Corporation on the redemption date at the place
     designated in such notice his certificate or certificates representing the
     number of shares specified in such notice of redemption.

               (c) On or after the redemption date each holder of shares of
     $4.30 Preferred Stock to be redeemed shall present and surrender his
     certificate or certificates for such shares to the Corporation at the place
     designated in such notice and thereupon the redemption price of such shares
     shall be paid to or on the order of the person whose name appears on such
     certificate or certificates as the owner thereof and each surrendered
     certificate shall be canceled.

               (d) In case less than all the shares represented by any such
     certificate are redeemed, a new certificate shall be issued representing
     the unredeemed shares.

               (e) From and after the redemption date (unless default shall be
     made by the Corporation in payment of the redemption price) all dividends
     on the shares of $4.30 Preferred Stock designated for redemption in such
     notice shall cease to accrue, and all rights of the holders thereof as
     stockholders of the Corporation, except the right to receive the redemption
     price thereof upon the surrender of certificates representing the same,
     shall cease and determine and such shares shall not thereafter be
     transferred (except with the consent of the Corporation) on the books of
     the Corporation, and such shares shall not be deemed to be outstanding for
     any purpose whatsoever.

               (f) At its election, prior to the redemption date, the
     Corporation may deposit the redemption price of the shares of $4.30
     Preferred Stock called for redemption in trust for the holders thereof with
     a bank or trust company (having a capital and surplus of not less than
     $1,000,000) in the City of Chicago, Illinois or in the Borough of
     Manhattan, City

                                       50
<PAGE>

     and State of New York or in any other city in which the Corporation at the
     time shall maintain a transfer agency with respect to such stock, in which
     case such redemption notice shall state the date of such deposit, shall
     specify the office of such bank or trust company as the place of payment of
     the redemption price, and shall call upon such holders to surrender the
     certificates representing such shares at such place on or after the date
     fixed in such redemption notice (which shall not be later than the
     redemption date) against payment of the redemption price. From and after
     the making of such deposit, the shares of $4.30 Preferred Stock so
     designated for redemption shall not be deemed to be outstanding for any
     purpose whatsoever, and the rights of the holders of such shares shall be
     limited to the right to receive the redemption price of such shares without
     interest, upon surrender of the certificates representing the same to the
     Corporation at said office of such bank or trust company.

               (g) Any moneys so deposited which shall remain unclaimed by the
     holders of such $4.30 Preferred Stock at the end of six years after the
     redemption date shall be returned by such bank or trust company to the
     Corporation after which the holders of the $4.30 Preferred Stock shall have
     no further interest in such moneys.

          (5) Shares to be Retired. All shares of $4.30 Preferred Stock
     purchased or redeemed by the Corporation shall be retired and cancelled and
     shall be restored to the status of authorized but unissued shares of the
     class of Preferred Stock without par value, without designation as to
     series, and may thereafter be issued, but not as shares of $4.30 Preferred
     Stock.

          (6) Conversion or Exchange. The holders of shares of $4.30 Preferred
     Stock shall not have any rights herein to convert such shares into or
     exchange such shares for shares of any other series of any class or classes
     of capital stock (or any other security) of the Corporation.

          (7) Voting Rights. (a) Each holder of $4.30 Preferred Stock shall be
     entitled to one vote for each share held on each matter submitted to a vote
     of stockholders of the Corporation and, except as otherwise herein or by
     law provided, the $4.30 Preferred Stock, the Common Stock of the
     Corporation, and any other capital stock of the Corporation at the time
     entitled thereto, shall vote together as one class, except that while the
     holders of $4.30 Preferred Stock, voting as a class, are entitled to elect
     two directors as hereinafter provided, they shall not be entitled to
     participate with the Common Stock (or any other capital stock as stated
     above) in the election of any other directors.

               (b) In case at any time three or more full semi-annual dividends
     (whether consecutive or not) on the $4.30 Preferred Stock shall be in
     arrears, then during the period (the "Class Voting Period") commencing with
     such time and ending with the time when all arrears in dividends on the
     $4.30 Preferred Stock shall have been paid and the full dividend on the
     $4.30 Preferred Stock for the then current semi-annual dividend period
     shall have been declared and paid or set aside for payment, at any meeting
     of the stockholders of the Corporation held for the election of directors
     during the Class Voting Period, the holders of $4.30 Preferred Stock
     represented in person or by proxy at said meeting shall be entitled, as a
     class, to the exclusion of the holders of all other classes of stock of the
     Corporation, to elect two directors of the Corporation, each share of $4.30
     Preferred Stock entitling the holder thereof to one vote.

                                       51
<PAGE>

               (c) Any director who shall have been elected by holders of $4.30
     Preferred Stock or by any director so elected as herein contemplated, may
     be removed at any time during a Class Voting Period, either for or without
     cause, by, and only by, the affirmative votes of the holders of record of a
     majority of the outstanding shares of $4.30 Preferred Stock given at a
     special meeting of such stockholders called for the purpose, and any
     vacancy thereby created may be filled during such Class Voting Period by
     the holders of $4.30 Preferred Stock present in person or represented by
     proxy at such meeting. Any director to be elected by the Board of Directors
     of the Corporation to replace a director elected by holders of $4.30
     Preferred Stock or elected by a director as provided for in this sentence
     shall be elected by the remaining director previously elected by the
     holders of $4.30 Preferred Stock. At the end of the Class Voting Period the
     holders of $4.30 Preferred Stock shall be automatically divested of all
     voting power vested in them under this resolution but subject always to the
     subsequent vesting hereunder of voting power in the holders of $4.30
     Preferred Stock in the event of any similar default or defaults thereafter.

          (8) Ranking. The $4.30 Preferred Stock shall rank on a parity with the
     Corporation's 8-1/4% Cumulative Preferred Stock, Series 1992-A, 7.35%
     Cumulative Preferred Stock, Series 1993-A, $4.50 Cumulative Preferred Stock
     and 5% Cumulative Preferred Stock as to payment of dividends and
     distribution of assets upon liquidation, dissolution, or winding up,
     whether voluntary or involuntary, and shall rank prior to the Corporation's
     Common Stock and Series A Junior Participating Preferred Stock as to
     payment of dividends and distribution of assets upon liquidation,
     dissolution, or winding up, whether voluntary or involuntary, and prior to
     any other series of stock authorized to be issued by the Corporation which
     ranks junior to the Corporation's 8-1/4% Cumulative Preferred Stock, Series
     1992-A, 7.35% Cumulative Preferred Stock, Series 1993-A, $4.50 Cumulative
     Preferred Stock and 5% Cumulative Preferred Stock as to payment of
     dividends and distribution of assets upon liquidation, dissolution, or
     winding up, whether voluntary or involuntary.

          (9) Amendments. While any $4.30 Preferred Stock is outstanding, the
     Corporation shall not alter or change the preferences, special rights or
     powers of the $4.30 Preferred Stock so as to adversely affect the $4.30
     Preferred Stock without the affirmative consent (given in writing or at a
     meeting duly called for the purpose) of the holders of at least two-thirds
     (2/3rds) of the aggregate number of shares of $4.30 Preferred Stock then
     outstanding.

     "FURTHER RESOLVED, that the Chairman, President, or any Vice President,
together with the Secretary or an Assistant Secretary, of the Corporation are
hereby authorized and directed to execute, acknowledge, file with the Delaware
Secretary of State, and record in New Castle County, Delaware, a Certificate of
Designation, Preferences and Rights of the $4.30 Preferred Stock when such
officers of the Corporation shall in their sole discretion consider such action
to be necessary or advisable; and

     "FURTHER RESOLVED, that the form of certificates for the $4.30 Preferred
Stock which form of certificate has been presented to this meeting, and a copy
of which the Secretary or an Assistant Secretary is instructed to mark for
identification and file with the corporate records, is hereby approved, the
facsimile signatures of the officers of the Corporation contained on the
certificates are adopted as the valid and binding signatures of the officers so
signing, and the proper corporate officers are authorized on behalf of and under
the corporate seal of the Corporation to execute and deliver the said
certificates in substantially the form presented with such changes therein

                                       52
<PAGE>

as may be approved by the officers executing the same, execution thereof to be
conclusive evidence of such approval; and

     "FURTHER RESOLVED, that application be made to the New York Stock Exchange,
Inc. (the "Exchange") for listing of the $4.30 Preferred Stock upon official
notice of issuance of the $4.30 Preferred Stock and that Messrs. J. W. Blenke,
P. R. Shay and P. D. Schwartz or any counsel designated by any of the foregoing
individuals, be and each hereby are authorized and designated by the Corporation
to appear before the Exchange in furtherance of the listing of said $4.30
Preferred Stock, including authority to file or make any such changes in the
said applications or any agreements relevant thereto and to execute any and all
documents on behalf of the Corporation as may be necessary or desirable to
conform with the requirements for listing; and

     "FURTHER RESOLVED, that the officers of the Corporation, or any counsel
designated thereby, are hereby severally authorized to execute on behalf of the
Corporation and file with appropriate authorities such applications, statements,
certificates, consents, and other documents as may be necessary for the
registration or qualification of the $4.30 Preferred Stock under the securities
laws of the states of the United States in which such securities are required to
be registered or qualified, and any actions having previously been taken are
hereby authorized, approved and ratified; and

     "FURTHER RESOLVED, that Harris Trust and Savings Bank ("Harris Bank") is
hereby appointed as transfer agent and registrar for the $4.30 Preferred Stock
upon such terms as the officers of the Corporation consider necessary or
advisable; and

     "FURTHER RESOLVED, that for the purpose of the original issue of the shares
of $4.30 Preferred Stock, Harris Bank, as the Corporation's transfer agent and
registrar, is authorized and directed to issue and is authorized to register and
deliver certificates representing an aggregate of up to 836,585 shares of $4.30
Preferred Stock of the Corporation all in accordance with instructions from the
officers of the Corporation; and

     "FURTHER RESOLVED, that the $4.30 Preferred Stock shall be without par
value; and

     "FURTHER RESOLVED, that the officers of the Corporation are hereby
authorized and directed on behalf of the Corporation to take and cause to be
taken all action necessary or desirable to carry out the terms, implications and
intent of these resolutions, and to consummate the transactions contemplated
therein."

                                       53
<PAGE>

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by David A. Schoenholz,
Executive Vice President and Chief Financial Officer of the Corporation, and
attested by Patrick D. Schwartz, Associate General Counsel and Assistant
Secretary, this 30th day of June, 1998.

                                              HOUSEHOLD INTERNATIONAL, INC.

                                              By: /s/ David A. Schoenholz
                                                  --------------------------
                                                  Executive Vice President-
                                                  Chief Financial Officer
Attest:

/s/ Patrick D. Schwartz
---------------------------
Associate General Counsel and
Assistant Secretary

                                       54
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.

               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                 7.50% Cumulative Preferred Stock, Series 2001-A
                               (Without Par Value)

     HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES that the
following resolutions were duly adopted by the Board of Directors of the
Corporation and by the Offering Committee of the Board of Directors, pursuant to
authority conferred upon the Offering Committee by the resolutions of the Board
of Directors set forth herein and in accordance with Section 141(c) of the
General Corporation Law of the State of Delaware.

     1. The Board of Directors, on May 9, 2001 adopted the following resolutions
designating an Offering Committee of the Board of Directors and authorizing the
Offering Committee to act on behalf of the Board of Directors (within certain
limitations) in connection with the designation, issuance and sale of shares in
one or more series of Preferred Stock, without par value, of the Corporation:

     "FURTHER RESOLVED, that Messrs. W.F. Aldinger, J.B. Pitblado and J.D.
Nichols (with any Director able to act as an alternate in the place of any named
Director) are hereby designated as the Offering Committee of the Board of
Directors. The Offering Committee of the Board of Directors shall have and may
exercise, to the fullest extent permitted by law, the full power and authority
of the Board of Directors with respect to the issuance and sale of (i) the Debt
Securities, (ii) one or more new series of the Corporation's Preferred Stock,
including, without limitation, establishing the purchase price therefore, and
fixing the designations and any of the preferences, powers, rights (other than
voting powers or voting rights which shall be fixed by the Board of Directors)
and relative, participating, optional or other special rights and
qualifications, limitations or restrictions thereof, of such shares of each
series of Preferred Stock, (iii) Stock Purchase Contracts, including without
limitation, establishing the purchase price therefore, and fixing the powers,
rights, preferences, and qualifications, limitations or restrictions thereof or
(iv) the Common Stock, provided however, that prior to the issuance of any Stock
Purchase Contracts or shares of Common Stock by the Offering Committee pursuant
to this authority, the Offering Committee shall report the relevant information
pertaining to such offering to the Board of Directors; and

     "FURTHER RESOLVED, that notwithstanding the foregoing resolutions, the
power and authority of the Offering Committee set forth in the preceding
resolution shall expire on December 31, 2004, unless extended by further action
of the Board of Directors of the Corporation; and

     "FURTHER RESOLVED, that the Offering Committee is authorized to take such
additional actions and adopt such additional resolutions as it deems necessary
or appropriate for the purpose of authorizing and implementing the issuance,
offer, and sale for cash the Preferred Stock, including, without limiting the
generality of the foregoing, the authorization and execution of agreements
(including underwriting agreements) relating to the offer and sale of Preferred
Stock, approval of

                                       55
<PAGE>

forms of stock certificates and authorization of issuance of Preferred Stock in
uncertificated form, any actions which may be necessary to qualify the offering
and sale of Preferred Stock under Blue Sky Laws of the various states, any
necessary filings with the Secretary of State of Delaware and other
jurisdictions, and the appointment of a transfer agent; and

     "FURTHER RESOLVED, that the Offering Committee is hereby empowered, in
connection with the issuance and sale of any new series of the Corporation's
Preferred Stock, to authorize the issuance and sale of depositary shares and
depositary receipts for such depositary shares with respect to any such series
of Preferred Stock, and to authorize the appointment of a depositary, registrar,
and transfer agent for such depositary shares and depositary receipts, the
execution of a depositary agreement, and any additional agreements or actions in
connection therewith as the Offering Committee deems necessary or appropriate;
and

     "FURTHER RESOLVED, that any Officer is hereby authorized and directed on
behalf of the Corporation to take any and all other actions deemed by such
Officer to be necessary or advisable with respect to the offer, issuance, and
sale of the Securities."

     2. The Board of Directors, on May 9, 2001, adopted the following resolution
pertaining to the voting rights for series of Preferred Stock, without par
value, authorized for issuance by the Offering Committee of the Board of
Directors:

     "FURTHER RESOLVED, that holders of each series of the Corporation's
Preferred Stock which is authorized by the Offering Committee of the Board of
Directors shall have no voting rights, and their consent shall not be required
for taking any corporate action, except as otherwise set forth herein or as
otherwise required by law, and except as otherwise provided by the Board of
Directors with respect to any particular series of Preferred Stock:

     The consent of the holders of the Preferred Stock with respect to the
matters set forth in sub-sections (i) and (iii) of paragraph (5) of Article IV
of the Corporation's Restated Certificate of Incorporation ("Paragraph (5)")
shall not be required, except with respect to the creation or issuance of any
class of stock ranking prior to or on a parity with the Preferred Stock, or any
series thereof, as to the payment of dividends or the distribution of assets;
but the other provisions of Paragraph (5) shall be applicable to the Preferred
Stock. The holders of the Preferred Stock shall have no right to elect directors
pursuant to paragraph (6) of Article IV of the Corporation's Restated
Certificate of Incorporation ("Paragraph (6)"), such right hereby being
expressly withheld.

     In the event that any six quarterly cumulative dividends, whether
consecutive or not, upon the Preferred Stock shall be in arrears, the holders of
the Preferred Stock shall have the right, voting separately as a class with
holders of shares of any one or more other series of preferred stock of the
Corporation ranking on a parity with the Preferred Stock either as to payment of
dividends or the distribution of assets upon liquidation, dissolution, or
winding up, whether voluntary or involuntary, and upon which like voting rights
have been conferred and are then exercisable, at the next meeting of
stockholders called for the election of directors, to elect two members of the
Board of Directors. The right of such holders of such shares of the Preferred
Stock, voting separately as a class, to elect (together with the holders of
shares of any one or more other series of preferred stock of the Corporation
ranking on such a parity) members of the Board of Directors of the Corporation
as aforesaid shall continue until such time as all dividends accumulated on such
shares of the Preferred Stock shall have been paid in full, at which time such
right shall terminate, except as herein or by law

                                       56
<PAGE>

expressly provided, subject to revesting in the event of each and every
subsequent failure to pay dividends of the character above mentioned.

     Upon any termination of the right of the holders of the Preferred Stock as
a class to elect directors as herein provided, the term of office of all
directors so elected shall terminate immediately. If the office of any director
elected by such holders voting as a class becomes vacant by reason of death,
resignation, retirement, disqualification, removal from office or otherwise, the
remaining director elected by such holders voting as a class shall end and the
special voting powers vested in such holders as provided in this resolution
shall have expired, the number of directors shall thereupon be such number as
may be provided for in the Corporation's Bylaws irrespective of any increase
made pursuant to the provisions of this resolution.

     Until all unpaid dividends on the Preferred Stock shall have been paid in
full, and any series of preferred stock issued by the Corporation having the
voting rights set forth in Paragraph (6) to exercise fully the right to elect
directors as granted by and provided in Paragraph (6), the number of directors
constituting the whole Board of Directors of the Corporation shall not be less
than seven. If, upon any such arrearage in dividends the number of directors
constituting the whole Board of Directors shall be less than seven, the size of
the Board of Directors shall, immediately prior to the next meeting of
stockholders called for the election of directors, automatically be increased by
such number as shall be necessary to cause the number of directors constituting
the whole Board of Directors to be no less than seven.

     To the extent that the Board of Directors is authorized to fix the
designations, powers, preferences and relative, participating, optional or other
special rights, and qualifications, limitations or restrictions thereof in
respect of additional series of preferred stock, none of the preferences or
rights of any such additional series as fixed by the Board of Directors shall
rank prior to the Preferred Stock as to payment of dividends or the distribution
of assets upon liquidation, dissolution, or winding up, whether voluntary or
involuntary, without the consent of the holders of two-thirds of the outstanding
shares of such series of Preferred Stock voting as a class.

     The foregoing voting provisions shall not apply to any series of Preferred
Stock, if at or prior to the time when the act with respect to which such vote
would otherwise be required shall be effected, all outstanding shares of such
series of Preferred Stock shall have been redeemed or sufficient funds shall
have been deposited in trust to effect such redemption.

     On any item in which the holders of Preferred Stock are entitled to vote,
such holders shall be entitled to one vote for each share held.

     3. By Unanimous Written Consent, dated as of September 20, 2001, the
Offering Committee of the Board of Directors adopted the following resolution
pursuant to authority conferred upon the Offering Committee of the Board of
Directors by the resolutions of the Board of Directors set forth in paragraph 1
above of this Certificate of Designation, Preferences and Rights:

     "RESOLVED, that the issue of a series of Preferred Stock without par value
of the Corporation is hereby authorized and the designation, preferences and
privileges, relative, participating, optional and other special rights, and
qualifications, limitations and restrictions thereof, in addition to those set
forth in the Restated Certificate of Incorporation, as amended, of the
Corporation, are hereby fixed as follows:

                                       57
<PAGE>

     7.50% Cumulative Preferred Stock, Series 2001-A

     (1) Number of Shares and Designation. 300,000 shares of Preferred Stock
without par value of the Corporation are hereby constituted as a series of
Preferred Stock without par value and designated as 7.50% Cumulative Preferred
Stock, Series 2001-A (hereinafter called the "7.50% Preferred Stock").

     (2) Dividends. The holders of shares of the 7.50% Preferred Stock shall be
entitled to receive cash dividends, when and as declared by the Board of
Directors of the Corporation, out of assets legally available for such purpose,
at the rate determined as provided below. Such dividends shall be cumulative
from the date of original issue of such shares and shall be payable quarterly in
arrears, when and as declared by the Board of Directors of the Corporation, on
the fifteenth day of January, April, July and October in each year to holders of
record on the respective last business days of the preceding month (and the
quarterly dividend periods shall commence on the first days of January, April,
July and October).

     Dividends on the 7.50% Preferred Stock for quarterly dividend periods will
be payable at the rate of 7.50% per annum from the date of original issue
applied to the amount of $1,000 per share of 7.50% Preferred Stock. The amount
of dividends payable on each share of 7.50% Preferred Stock for each full
quarterly dividend period shall be computed by dividing the dividend rate by
four and applying the dividend rate to the amount of $1,000 per share. The
amount of dividends payable for any dividend period shorter than a full
quarterly dividend period shall be computed on the basis of 30-day months, a
360-day year and the actual number of days elapsed in the period.

     (3) Liquidation Preference. The amount to which shares of 7.50% Preferred
Stock Shall be entitled upon liquidation, dissolution, or winding up of the
Corporation, whether voluntary or involuntary, shall be $1,000 per share, plus
an amount equal to all accrued and unpaid dividends, if any, thereon to the date
fixed for payment, and no more.

     (4) Redemption. The shares of 7.50% Preferred Stock shall be subject to
redemption in whole or in part at the option of the Corporation on or after
September 27, 2006 at $1,000 per share, plus an amount equal to all accrued and
unpaid dividends, if any, thereon to the date fixed for redemption, and no more.

     (5) Shares to be Retired. All shares of 7.50% Preferred Stock purchased or
redeemed by the Corporation shall be retired and cancelled and shall be restored
to the statues of authorized but unissued shares of the class of Preferred Stock
without par value, without designation as to series, and may thereafter be
issued, but not as shares of 7.50% Preferred Stock.

     (6) Conversion or Exchange. The holders of shares of 7.50% Preferred Stock
shall not have any rights herein to convert such shares into or exchange such
shares for shares of any other series of any class or classes of capital stock
(or any other security) of the Corporation.

     (7) Ranking. The 7.50% Preferred Stock shall rank on a parity with the
Corporation's 8-1/4% Cumulative Preferred Stock, Series 1992-A, 5% Cumulative
Preferred Stock, $4.50 Cumulative Preferred Stock, and $4.30 Cumulative
Preferred Stock as to payment of dividends and distribution of assets upon
liquidation, dissolution, or winding up, whether voluntary or involuntary, and
shall rank prior to the Corporation's Common Stock and Series A Junior
Participating Preferred Stock as to payment of dividends and distribution of
assets upon liquidation, dissolution, or winding up, whether

                                       58
<PAGE>

voluntary or involuntary, and prior to any other series of stock authorized to
be issued by the Corporation which ranks junior to the 8-1/4% Cumulative
Preferred Stock, Series 1992-A, 5% Cumulative Preferred Stock, $4.50 Cumulative
Preferred Stock, and $4.30 Cumulative Preferred Stock as to payment of dividends
and distribution of assets upon liquidation, dissolution or winding up, whether
voluntary or involuntary.

     (8) Depositary Shares and Depositary. The 7.50% Preferred Stock shall be
represented by 12,000,000 depositary shares, as evidenced by depositary
receipts, each depositary share representing ownership of one-fortieth of a
share of the 7.50% Preferred Stock, and each owner of a depositary share shall
be entitled, in proportion to one-fortieth of a share of the 7.50% Preferred
Stock represented by the depositary share, to all the rights and preferences of
the 7.50% Preferred Stock (including dividend, voting, redemption and
liquidation rights).

     Computershare Trust Company of New York is appointed depositary of the
7.50% Preferred Stock and shall issue the depositary receipts evidencing the
depositary shares in accordance with the terms of a deposit agreement to be
entered into between the Corporation and such depositary, which agreement is
hereby authorized. Computershare Investor Services, LLC is appointed as
registrar and transfer agent for the depositary shares.

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by John W. Blenke Vice
President-Corporate Law and Assistant Secretary, and attested by Patrick D.
Schwartz, Assistant General Counsel and Assistant Secretary, this 20th day of
September, 2001.

                                            HOUSEHOLD INTERNATIONAL, INC.

                                            By: John W. Blenke
                                            -----------------------------
                                            Vice President-Corporate Law &
                                            Assistant Secretary

Attest:

Patrick D. Schwartz
-------------------------------
Assistant Secretary

                                       59
<PAGE>

                          HOUSEHOLD INTERNATIONAL, INC.
               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS
                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                 7.60% Cumulative Preferred Stock, Series 2002-A
                               (Without Par Value)

     HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES that the
following resolutions were duly adopted by the Board of Directors of the
Corporation and by the Offering Committee of the Board of Directors, pursuant to
authority conferred upon the Offering Committee by the resolutions of the Board
of Directors set forth herein and in accordance with Section 141(c) of the
General Corporation Law of the State of Delaware.

     1. The Board of Directors, on May 9, 2001 adopted the following resolutions
designating an Offering Committee of the Board of Directors and authorizing the
Offering Committee to act on behalf of the Board of Directors (within certain
limitations) in connection with the designation, issuance and sale of shares in
one or more series of Preferred Stock, without par value, of the Corporation:

     "FURTHER RESOLVED, that Messrs. W.F. Aldinger, J.B. Pitblado and J.D.
Nichols (with any Director able to act as an alternate in the place of any named
Director) are hereby designated as the Offering Committee of the Board of
Directors. The Offering Committee of the Board of Directors shall have and may
exercise, to the fullest extent permitted by law, the full power and authority
of the Board of Directors with respect to the issuance and sale of (i) the Debt
Securities, (ii) one or more new series of the Corporation's Preferred Stock,
including, without limitation, establishing the purchase price therefore, and
fixing the designations and any of the preferences, powers, rights (other than
voting powers or voting rights which shall be fixed by the Board of Directors)
and relative, participating, optional or other special rights and
qualifications, limitations or restrictions thereof, of such shares of each
series of Preferred Stock, (iii) Stock Purchase Contracts, including without
limitation, establishing the purchase price therefore, and fixing the powers,
rights, preferences, and qualifications, limitations or restrictions thereof or
(iv) the Common Stock, provided however, that prior to the issuance of any Stock
Purchase Contracts or shares of Common Stock by the Offering Committee pursuant
to this authority, the Offering Committee shall report the relevant information
pertaining to such offering to the Board of Directors; and

     "FURTHER RESOLVED, that notwithstanding the foregoing resolutions, the
power and authority of the Offering Committee set forth in the preceding
resolution shall expire on December 31, 2004, unless extended by further action
of the Board of Directors of the Corporation; and

     "FURTHER RESOLVED, that the Offering Committee is authorized to take such
additional actions and adopt such additional resolutions as it deems necessary
or appropriate for the purpose of authorizing and implementing the issuance,
offer, and sale for cash the Preferred Stock, including, without limiting the
generality of the foregoing, the authorization and execution of agreements
(including underwriting agreements) relating to the offer and sale of Preferred
Stock, approval of forms of stock certificates and authorization of issuance of
Preferred Stock in uncertificated form, any actions which may be necessary to
qualify the offering and sale of Preferred Stock under Blue

                                       60
<PAGE>

Sky Laws of the various states, any necessary filings with the Secretary of
State of Delaware and other jurisdictions, and the appointment of a transfer
agent; and

     "FURTHER RESOLVED, that the Offering Committee is hereby empowered, in
connection with the issuance and sale of any new series of the Corporation's
Preferred Stock, to authorize the issuance and sale of depositary shares and
depositary receipts for such depositary shares with respect to any such series
of Preferred Stock, and to authorize the appointment of a depositary, registrar,
and transfer agent for such depositary shares and depositary receipts, the
execution of a depositary agreement, and any additional agreements or actions in
connection therewith as the Offering Committee deems necessary or appropriate;
and

     "FURTHER RESOLVED, that any Officer is hereby authorized and directed on
behalf of the Corporation to take any and all other actions deemed by such
Officer to be necessary or advisable with respect to the offer, issuance, and
sale of the Securities."

     4. The Board of Directors, on May 9, 2001, adopted the following resolution
pertaining to the voting rights for series of Preferred Stock, without par
value, authorized for issuance by the Offering Committee of the Board of
Directors:

     "FURTHER RESOLVED, that holders of each series of the Corporation's
Preferred Stock which is authorized by the Offering Committee of the Board of
Directors shall have no voting rights, and their consent shall not be required
for taking any corporate action, except as otherwise set forth herein or as
otherwise required by law, and except as otherwise provided by the Board of
Directors with respect to any particular series of Preferred Stock:

     The consent of the holders of the Preferred Stock with respect to the
matters set forth in sub-sections (i) and (iii) of paragraph (5) of Article IV
of the Corporation's Restated Certificate of Incorporation ("Paragraph (5)")
shall not be required, except with respect to the creation or issuance of any
class of stock ranking prior to or on a parity with the Preferred Stock, or any
series thereof, as to the payment of dividends or the distribution of assets;
but the other provisions of Paragraph (5) shall be applicable to the Preferred
Stock. The holders of the Preferred Stock shall have no right to elect directors
pursuant to paragraph (6) of Article IV of the Corporation's Restated
Certificate of Incorporation ("Paragraph (6)"), such right hereby being
expressly withheld.

     In the event that any six quarterly cumulative dividends, whether
consecutive or not, upon the Preferred Stock shall be in arrears, the holders of
the Preferred Stock shall have the right, voting separately as a class with
holders of shares of any one or more other series of preferred stock of the
Corporation ranking on a parity with the Preferred Stock either as to payment of
dividends or the distribution of assets upon liquidation, dissolution, or
winding up, whether voluntary or involuntary, and upon which like voting rights
have been conferred and are then exercisable, at the next meeting of
stockholders called for the election of directors, to elect two members of the
Board of Directors. The right of such holders of such shares of the Preferred
Stock, voting separately as a class, to elect (together with the holders of
shares of any one or more other series of preferred stock of the Corporation
ranking on such a parity) members of the Board of Directors of the Corporation
as aforesaid shall continue until such time as all dividends accumulated on such
shares of the Preferred Stock shall have been paid in full, at which time such
right shall terminate, except as herein or by law expressly provided, subject to
revesting in the event of each and every subsequent failure to pay dividends of
the character above mentioned.

                                       61
<PAGE>

     Upon any termination of the right of the holders of the Preferred Stock as
a class to elect directors as herein provided, the term of office of all
directors so elected shall terminate immediately. If the office of any director
elected by such holders voting as a class becomes vacant by reason of death,
resignation, retirement, disqualification, removal from office or otherwise, the
remaining director elected by such holders voting as a class shall end and the
special voting powers vested in such holders as provided in this resolution
shall have expired, the number of directors shall thereupon be such number as
may be provided for in the Corporation's Bylaws irrespective of any increase
made pursuant to the provisions of this resolution.

     Until all unpaid dividends on the Preferred Stock shall have been paid in
full, and any series of preferred stock issued by the Corporation having the
voting rights set forth in Paragraph (6) to exercise fully the right to elect
directors as granted by and provided in Paragraph (6), the number of directors
constituting the whole Board of Directors of the Corporation shall not be less
than seven. If, upon any such arrearage in dividends the number of directors
constituting the whole Board of Directors shall be less than seven, the size of
the Board of Directors shall, immediately prior to the next meeting of
stockholders called for the election of directors, automatically be increased by
such number as shall be necessary to cause the number of directors constituting
the whole Board of Directors to be no less than seven.

     To the extent that the Board of Directors is authorized to fix the
designations, powers, preferences and relative, participating, optional or other
special rights, and qualifications, limitations or restrictions thereof in
respect of additional series of preferred stock, none of the preferences or
rights of any such additional series as fixed by the Board of Directors shall
rank prior to the Preferred Stock as to payment of dividends or the distribution
of assets upon liquidation, dissolution, or winding up, whether voluntary or
involuntary, without the consent of the holders of two-thirds of the outstanding
shares of such series of Preferred Stock voting as a class.

     The foregoing voting provisions shall not apply to any series of Preferred
Stock, if at or prior to the time when the act with respect to which such vote
would otherwise be required shall be effected, all outstanding shares of such
series of Preferred Stock shall have been redeemed or sufficient funds shall
have been deposited in trust to effect such redemption.

     On any item in which the holders of Preferred Stock are entitled to vote,
such holders shall be entitled to one vote for each share held.

     5. By Unanimous Written Consent, dated as of March 18, 2002, the Offering
Committee of the Board of Directors adopted the following resolution pursuant to
authority conferred upon the Offering Committee of the Board of Directors by the
resolutions of the Board of Directors set forth in paragraph 1 above of this
Certificate of Designation, Preferences and Rights:

     "RESOLVED, that the issue of a series of Preferred Stock without par value
of the Corporation is hereby authorized and the designation, preferences and
privileges, relative, participating, optional and other special rights, and
qualifications, limitations and restrictions thereof, in addition to those set
forth in the Restated Certificate of Incorporation, as amended, of the
Corporation, are hereby fixed as follows:

     7.60% Cumulative Preferred Stock, Series 2002-A

                                       62
<PAGE>

     (1) Number of Shares and Designation. 400,000 shares of Preferred Stock
without par value of the Corporation are hereby constituted as a series of
Preferred Stock without par value and designated as 7.60% Cumulative Preferred
Stock, Series 2002-A (hereinafter called the "7.60% Preferred Stock").

     (2) Dividends. The holders of shares of the 7.60% Preferred Stock shall be
entitled to receive cash dividends, when and as declared by the Board of
Directors of the Corporation, out of assets legally available for such purpose,
at the rate determined as provided below. Such dividends shall be cumulative
from the date of original issue of such shares and shall be payable quarterly in
arrears, when and as declared by the Board of Directors of the Corporation, on
the fifteenth day of January, April, July and October in each year (commencing
July 15,2002) to holders of record on the respective last business days of the
preceding month (and the quarterly dividend periods shall commence on the first
days of January, April, July and October, except that the initial dividend
period shall commence on the date of original issue and end on June 30, 2002).

     Dividends on the 7.60% Preferred Stock for quarterly dividend periods will
be payable at the rate of 7.60% per annum from the date of original issue
applied to the amount of $1,000 per share of 7.60% Preferred Stock. The amount
of dividends payable on each share of 7.60% Preferred Stock for each full
quarterly dividend period shall be computed by dividing the dividend rate by
four and applying the dividend rate to the amount of $1,000 per share. The
amount of dividends payable for any dividend period shorter than a full
quarterly dividend period shall be computed on the basis of 30-day months, a
360-day year and the actual number of days elapsed in the period.

     (3) Liquidation Preference. The amount to which shares of 7.60% Preferred
Stock Shall be entitled upon liquidation, dissolution, or winding up of the
Corporation, whether voluntary or involuntary, shall be $1,000 per share, plus
an amount equal to all accrued and unpaid dividends, if any, thereon to the date
fixed for payment, and no more.

     (4) Redemption. The shares of 7.60% Preferred Stock shall be subject to
redemption in whole or in part at the option of the Corporation on or after
March 25, 2007 at $1,000 per share, plus an amount equal to all accrued and
unpaid dividends, if any, thereon to the date fixed for redemption, and no more.

     (5) Shares to be Retired. All shares of 7.60% Preferred Stock purchased or
redeemed by the Corporation shall be retired and cancelled and shall be restored
to the statues of authorized but unissued shares of the class of Preferred Stock
without par value, without designation as to series, and may thereafter be
issued, but not as shares of 7.60% Preferred Stock.

     (6) Conversion or Exchange. The holders of shares of 7.60% Preferred Stock
shall not have any rights herein to convert such shares into or exchange such
shares for shares of any other series of any class or classes of capital stock
(or any other security) of the Corporation.

     (7) Ranking. The 7.60% Preferred Stock shall rank on a parity with the
Corporation's 7.50% Cumulative Preferred Stock, Series 2001-A, 8-1/4% Cumulative
Preferred Stock, Series 1992-A, 5% Cumulative Preferred Stock, $4.50 Cumulative
Preferred Stock, and $4.30 Cumulative Preferred Stock as to payment of dividends
and distribution of assets upon liquidation, dissolution, or winding up, whether
voluntary or involuntary, and shall rank prior to the Corporation's Common Stock
and Series A Junior Participating Preferred Stock as to payment of dividends and
distribution of assets upon liquidation, dissolution, or winding up, whether
voluntary or involuntary, and prior to any other

                                       63
<PAGE>

series of stock authorized to be issued by the Corporation which ranks junior to
the 7.50% Cumulative Preferred Stock, Series 2001-A, 8-1/4% Cumulative Preferred
Stock, Series 1992-A, 5% Cumulative Preferred Stock, $4.50 Cumulative Preferred
Stock, and $4.30 Cumulative Preferred Stock as to payment of dividends and
distribution of assets upon liquidation, dissolution or winding up, whether
voluntary or involuntary.

     (8) Depositary Shares and Depositary. The 7.60% Preferred Stock shall be
represented by 16,000,000 depositary shares, as evidenced by depositary
receipts, each depositary share representing ownership of one-fortieth of a
share of the 7.60% Preferred Stock, and each owner of a depositary share shall
be entitled, in proportion to one-fortieth of a share of the 7.60% Preferred
Stock represented by the depositary share, to all the rights and preferences of
the 7.60% Preferred Stock (including dividend, voting, redemption and
liquidation rights).

     Computershare Trust Company of New York is appointed depositary of the
7.60% Preferred Stock and shall issue the depositary receipts evidencing the
depositary shares in accordance with the terms of a deposit agreement to be
entered into between the Corporation and such depositary, which agreement is
hereby authorized. Computershare Investor Services, LLC is appointed as
registrar and transfer agent for the depositary shares.

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by John W. Blenke Vice
President-Corporate Law and Assistant Secretary, and attested by Patrick D.
Schwartz, Assistant General Counsel and Assistant Secretary, this 18th day of
March, 2002.

                                             HOUSEHOLD INTERNATIONAL, INC.

                                             By: /s/ John W. Blenke
                                                 -------------------------------
                                                 John W. Blenke
                                                 Vice President-Corporate Law &
                                                 Assistant Secretary

Attest:

/s/ Patrick D. Schwartz
-------------------------------
Patrick D. Schwartz
Assistant Secretary

                                       64
<PAGE>
                          HOUSEHOLD INTERNATIONAL, INC.
               CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS
                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                7 5/8% Cumulative Preferred Stock, Series 2002-B
                               (Without Par Value)

     HOUSEHOLD INTERNATIONAL, INC., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), HEREBY CERTIFIES that the
following resolutions were duly adopted by the Board of Directors of the
Corporation and by the Offering Committee of the Board of Directors, pursuant to
authority conferred upon the Offering Committee by the resolutions of the Board
of Directors set forth herein and in accordance with Section 141(c) of the
General Corporation Law of the State of Delaware.

     1. The Board of Directors, on May 9, 2001 adopted the following resolutions
designating an Offering Committee of the Board of Directors and authorizing the
Offering Committee to act on behalf of the Board of Directors (within certain
limitations) in connection with the designation, issuance and sale of shares in
one or more series of Preferred Stock, without par value, of the Corporation:

     "FURTHER RESOLVED, that Messrs. W.F. Aldinger, J.B. Pitblado and J.D.
Nichols (with any Director able to act as an alternate in the place of any named
Director) are hereby designated as the Offering Committee of the Board of
Directors. The Offering Committee of the Board of Directors shall have and may
exercise, to the fullest extent permitted by law, the full power and authority
of the Board of Directors with respect to the issuance and sale of (i) the Debt
Securities, (ii) one or more new series of the Corporation's Preferred Stock,
including, without limitation, establishing the purchase price therefore, and
fixing the designations and any of the preferences, powers, rights (other than
voting powers or voting rights which shall be fixed by the Board of Directors)
and relative, participating, optional or other special rights and
qualifications, limitations or restrictions thereof, of such shares of each
series of Preferred Stock, (iii) Stock Purchase Contracts, including without
limitation, establishing the purchase price therefore, and fixing the powers,
rights, preferences, and qualifications, limitations or restrictions thereof or
(iv) the Common Stock, provided however, that prior to the issuance of any Stock
Purchase Contracts or shares of Common Stock by the Offering Committee pursuant
to this authority, the Offering Committee shall report the relevant information
pertaining to such offering to the Board of Directors; and

     "FURTHER RESOLVED, that notwithstanding the foregoing resolutions, the
power and authority of the Offering Committee set forth in the preceding
resolution shall expire on December 31, 2004, unless extended by further action
of the Board of Directors of the Corporation; and

     "FURTHER RESOLVED, that the Offering Committee is authorized to take such
additional actions and adopt such additional resolutions as it deems necessary
or appropriate for the purpose of authorizing and implementing the issuance,
offer, and sale for cash the Preferred Stock, including, without limiting the
generality of the foregoing, the authorization and execution of agreements
(including underwriting agreements) relating to the offer and sale of Preferred
Stock, approval of forms of stock certificates and authorization of issuance of
Preferred Stock in uncertificated form, any actions which may be necessary to
qualify the offering and sale of Preferred Stock under Blue

                                       65
<PAGE>

Sky Laws of the various states, any necessary filings with the Secretary of
State of Delaware and other jurisdictions, and the appointment of a transfer
agent; and

     "FURTHER RESOLVED, that the Offering Committee is hereby empowered, in
connection with the issuance and sale of any new series of the Corporation's
Preferred Stock, to authorize the issuance and sale of depositary shares and
depositary receipts for such depositary shares with respect to any such series
of Preferred Stock, and to authorize the appointment of a depositary, registrar,
and transfer agent for such depositary shares and depositary receipts, the
execution of a depositary agreement, and any additional agreements or actions in
connection therewith as the Offering Committee deems necessary or appropriate;
and

     "FURTHER RESOLVED, that any Officer is hereby authorized and directed on
behalf of the Corporation to take any and all other actions deemed by such
Officer to be necessary or advisable with respect to the offer, issuance, and
sale of the Securities."

     6. The Board of Directors, on May 9, 2001, adopted the following resolution
pertaining to the voting rights for series of Preferred Stock, without par
value, authorized for issuance by the Offering Committee of the Board of
Directors:

     "FURTHER RESOLVED, that holders of each series of the Corporation's
Preferred Stock which is authorized by the Offering Committee of the Board of
Directors shall have no voting rights, and their consent shall not be required
for taking any corporate action, except as otherwise set forth herein or as
otherwise required by law, and except as otherwise provided by the Board of
Directors with respect to any particular series of Preferred Stock:

     The consent of the holders of the Preferred Stock with respect to the
matters set forth in sub-sections (i) and (iii) of paragraph (5) of Article IV
of the Corporation's Restated Certificate of Incorporation ("Paragraph (5)")
shall not be required, except with respect to the creation or issuance of any
class of stock ranking prior to or on a parity with the Preferred Stock, or any
series thereof, as to the payment of dividends or the distribution of assets;
but the other provisions of Paragraph (5) shall be applicable to the Preferred
Stock. The holders of the Preferred Stock shall have no right to elect directors
pursuant to paragraph (6) of Article IV of the Corporation's Restated
Certificate of Incorporation ("Paragraph (6)"), such right hereby being
expressly withheld.

     In the event that any six quarterly cumulative dividends, whether
consecutive or not, upon the Preferred Stock shall be in arrears, the holders of
the Preferred Stock shall have the right, voting separately as a class with
holders of shares of any one or more other series of preferred stock of the
Corporation ranking on a parity with the Preferred Stock either as to payment of
dividends or the distribution of assets upon liquidation, dissolution, or
winding up, whether voluntary or involuntary, and upon which like voting rights
have been conferred and are then exercisable, at the next meeting of
stockholders called for the election of directors, to elect two members of the
Board of Directors. The right of such holders of such shares of the Preferred
Stock, voting separately as a class, to elect (together with the holders of
shares of any one or more other series of preferred stock of the Corporation
ranking on such a parity) members of the Board of Directors of the Corporation
as aforesaid shall continue until such time as all dividends accumulated on such
shares of the Preferred Stock shall have been paid in full, at which time such
right shall terminate, except as herein or by law expressly provided, subject to
revesting in the event of each and every subsequent failure to pay dividends of
the character above mentioned.

                                       66
<PAGE>

     Upon any termination of the right of the holders of the Preferred Stock as
a class to elect directors as herein provided, the term of office of all
directors so elected shall terminate immediately. If the office of any director
elected by such holders voting as a class becomes vacant by reason of death,
resignation, retirement, disqualification, removal from office or otherwise, the
remaining director elected by such holders voting as a class shall end and the
special voting powers vested in such holders as provided in this resolution
shall have expired, the number of directors shall thereupon be such number as
may be provided for in the Corporation's Bylaws irrespective of any increase
made pursuant to the provisions of this resolution.

     Until all unpaid dividends on the Preferred Stock shall have been paid in
full, and any series of preferred stock issued by the Corporation having the
voting rights set forth in Paragraph (6) to exercise fully the right to elect
directors as granted by and provided in Paragraph (6), the number of directors
constituting the whole Board of Directors of the Corporation shall not be less
than seven. If, upon any such arrearage in dividends the number of directors
constituting the whole Board of Directors shall be less than seven, the size of
the Board of Directors shall, immediately prior to the next meeting of
stockholders called for the election of directors, automatically be increased by
such number as shall be necessary to cause the number of directors constituting
the whole Board of Directors to be no less than seven.

     To the extent that the Board of Directors is authorized to fix the
designations, powers, preferences and relative, participating, optional or other
special rights, and qualifications, limitations or restrictions thereof in
respect of additional series of preferred stock, none of the preferences or
rights of any such additional series as fixed by the Board of Directors shall
rank prior to the Preferred Stock as to payment of dividends or the distribution
of assets upon liquidation, dissolution, or winding up, whether voluntary or
involuntary, without the consent of the holders of two-thirds of the outstanding
shares of such series of Preferred Stock voting as a class.

     The foregoing voting provisions shall not apply to any series of Preferred
Stock, if at or prior to the time when the act with respect to which such vote
would otherwise be required shall be effected, all outstanding shares of such
series of Preferred Stock shall have been redeemed or sufficient funds shall
have been deposited in trust to effect such redemption.

     On any item in which the holders of Preferred Stock are entitled to vote,
such holders shall be entitled to one vote for each share held.

     7. By Unanimous Written Consent, dated as of September 10, 2002, the
Offering Committee of the Board of Directors adopted the following resolution
pursuant to authority conferred upon the Offering Committee of the Board of
Directors by the resolutions of the Board of Directors set forth in paragraph 1
above of this Certificate of Designation, Preferences and Rights:

     "RESOLVED, that the issue of a series of Preferred Stock without par value
of the Corporation is hereby authorized and the designation, preferences and
privileges, relative, participating, optional and other special rights, and
qualifications, limitations and restrictions thereof, in addition to those set
forth in the Restated Certificate of Incorporation, as amended, of the
Corporation, are hereby fixed as follows:

     7 5/8% Cumulative Preferred Stock, Series 2002-B

                                       67
<PAGE>

     (1) Number of Shares and Designation. 350,000 shares of Preferred Stock
without par value of the Corporation are hereby constituted as a series of
Preferred Stock without par value and designated as 7 5/8% Cumulative Preferred
Stock, Series 2002-B (hereinafter called the "7 5/8% Preferred Stock").

     (2) Dividends. The holders of shares of the 7 5/8% Preferred Stock shall be
entitled to receive cash dividends, when and as declared by the Board of
Directors of the Corporation, out of assets legally available for such purpose,
at the rate determined as provided below. Such dividends shall be cumulative
from the date of original issue of such shares and shall be payable quarterly in
arrears, when and as declared by the Board of Directors of the Corporation, on
the fifteenth day of January, April, July and October in each year (commencing
January 15, 2003) to holders of record on the respective last business days of
the preceding month (and the quarterly dividend periods shall commence on the
first days of January, April, July and October, except that the initial dividend
period shall commence on the date of original issue and end on December 31,
2002).

     Dividends on the 6 5/8% Preferred Stock for quarterly dividend periods will
be payable at the rate of 7 5/8% per annum from the date of original issue
applied to the amount of $1,000 per share of 7 5/8% Preferred Stock. The amount
of dividends payable on each share of 7 5/8% Preferred Stock for each full
quarterly dividend period shall be computed by dividing the dividend rate by
four and applying the dividend rate to the amount of $1,000 per share. The
amount of dividends payable for any dividend period shorter than a full
quarterly dividend period shall be computed on the basis of 30-day months, a
360-day year and the actual number of days elapsed in the period.

     (3) Liquidation Preference. The amount to which shares of 7 5/8% Preferred
Stock shall be entitled upon liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, shall be $1,000 per share, plus
an amount equal to all accrued and unpaid dividends, if any, thereon to the date
fixed for payment, and no more.

     (4) Redemption. The shares of 7 5/8% Preferred Stock shall be subject to
redemption in whole or in part at the option of the Corporation on or after
September 17, 2007 at $1,000 per share, plus an amount equal to all accrued and
unpaid dividends, if any, thereon to the date fixed for redemption, and no more.

     (5) Shares to be Retired. All shares of 7 5/8% Preferred Stock purchased or
redeemed by the Corporation shall be retired and cancelled and shall be restored
to the status of authorized but unissued shares of the class of Preferred Stock
without par value, without designation as to series, and may thereafter be
issued, but not as shares of 7 5/8% Preferred Stock.

     (6) Conversion or Exchange. The holders of shares of 7 5/8% Preferred Stock
shall not have any rights herein to convert such shares into or exchange such
shares for shares of any other series of any class or classes of capital stock
(or any other security) of the Corporation.

     (7) Ranking. The 7 5/8% Preferred Stock shall rank on a parity with the
Corporation's 7.60% Cumulative Preferred Stock, Series 2002-A, 7.50% Cumulative
Preferred Stock, Series 2001-A, 8-1/4% Cumulative Preferred Stock, Series
1992-A, 5% Cumulative Preferred Stock, $4.50 Cumulative Preferred Stock and
$4.30 Cumulative Preferred Stock as to payment of dividends and distribution of
assets upon liquidation, dissolution or winding up, whether voluntary or
involuntary, and shall rank prior to the Corporation's Common Stock and Series A
Junior Participating Preferred Stock as to payment of dividends and distribution
of assets upon liquidation, dissolution or winding up, whether

                                       68
<PAGE>

voluntary or involuntary, and prior to any other series of stock authorized to
be issued by the Corporation which ranks junior to the 7.60% Cumulative
Preferred Stock, 7.50% Cumulative Preferred Stock, Series 2001-A, 8-1/4%
Cumulative Preferred Stock, Series 1992-A, 5% Cumulative Preferred Stock, $4.50
Cumulative Preferred Stock, and $4.30 Cumulative Preferred Stock as to payment
of dividends and distribution of assets upon liquidation, dissolution or winding
up, whether voluntary or involuntary.

     (8) Depositary Shares and Depositary. The 7 5/8% Preferred Stock shall be
represented by 14,000,000 depositary shares, as evidenced by depositary
receipts, each depositary share representing ownership of [one-fortieth] of a
share of the 7 5/8% Preferred Stock, and each owner of a depositary share shall
be entitled, in proportion to one-fortieth of a share of the 7 5/8% Preferred
Stock represented by the depositary share, to all the rights and preferences of
the 7 5/8% Preferred Stock (including dividend, voting, redemption and
liquidation rights).

     Computershare Trust Company of New York is appointed depositary of the 7
5/8% Preferred Stock and shall issue the depositary receipts evidencing the
depositary shares in accordance with the terms of a deposit agreement to be
entered into between the Corporation and such depositary, which agreement is
hereby authorized. Computershare Investor Services, LLC is appointed as
registrar and transfer agent for the depositary shares.

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation, Preferences and Rights to be signed by Patrick D. Schwartz, General
Counsel - Corporate Law and Treasury & Assistant Secretary, and attested by
Laurie S. Mattenson, Assistant Secretary, this 10th day of September, 2002.

                                            HOUSEHOLD INTERNATIONAL, INC.

                                            By:  /s/ Patrick D. Schwartz
                                                 ------------------------------
                                                 Patrick D. Schwartz
                                                 General Counsel - Corporate
                                                 Law and Treasury
                                                 & Assistant Secretary
Attest:

/s/ Laurie S. Mattenson
------------------------------
Laurie S. Mattenson
Assistant Secretary

                                       69<PAGE>
                          HOUSEHOLD INTERNATIONAL, INC.

             COMPUTERSHARE TRUST COMPANY OF NEW YORK, As Depositary

                                       AND

                        THE HOLDERS FROM TIME TO TIME OF
                    THE DEPOSITARY RECEIPTS DESCRIBED HEREIN

                                -----------------
                                Deposit Agreement
                                -----------------

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                                            Page
                                                                            ----
PARTIES ...............................................................      5
RECITALS ..............................................................      5

                                    ARTICLE 1

                                   Definitions

Certificate ...........................................................      5
Company  ..............................................................      5
Deposit Agreement   ...................................................      5
Depositary     ........................................................      5
Depositary Shares  ....................................................      5
Depositary's Agent   ..................................................      5
Depositary's Office  ..................................................      6
Receipt  ................................................ .............      6
Record Holder  ........................................................      6
Registrar   ...........................................................      6
Stock   ...............................................................      6
Transfer Agent  .......................................................      6

                                   ARTICLE II

           Form of Receipts, Deposit of Stock, Execution and Delivery,
                 Transfer, Surrender and Redemption of Receipts

SECTION 2. 01.    Form and Transfer of Receipts .......................      6

SECTION 2. 02.    Deposit of Stock; Execution and Delivery
                  of Receipts in Respect Thereof ......................      7

SECTION 2. 03.    Redemption of Stock  ................................      8

SECTION 2. 04.    Registration of Transfer of Receipts ................      9

SECTION 2. 05.    Split-ups and Combinations of Receipts;
                  Surrender of Receipts and Withdrawal of Stock  ......      9

SECTION 2. 06.    Limitations on Execution and Delivery, Transfer,
                  Surrender and Exchange of Receipts ..................     10

SECTION 2. 07.    Lost Receipts, etc.  ................................     11

SECTION 2. 08.    Cancellation and Destruction of
                  Surrendered Receipts  ...............................     11

                                       2
<PAGE>

                                   ARTICLE III

                         Certain Obligations of Holders
                           of Receipts and the Company

SECTION 3. 01.    Filing Proofs, Certificates and Other Information ...     11

SECTION 3. 02.    Payment of Taxes or Other Governmental
                  Charges .............................................     11

SECTION 3. 03.    Warranty as to Stock ................................     11

                                   ARTICLE IV

                        The Deposited Securities; Notices

SECTION 4. 01.    Cash Distributions ..................................     12

SECTION 4. 02.    Distributions Other Than Cash, Rights,
                  Preferences or Privileges  ..........................     12

SECTION 4. 03.    Subscription Rights, Preferences or
                  Privileges ..........................................     12

SECTION 4. 04.    Notice of Dividends; Fixing of Record Date for
                  Holders of Receipt ..................................     13

SECTION 4. 05.    Voting Rights .......................................     14

SECTION 4. 06.    Changes Affecting Deposited Securities and
                  Reclassifications, Recapitalizations, etc. ..........     14

SECTION 4. 07.    Inspection of Reports ...............................     15

SECTION 4. 08.    Lists of Receipt Holders  ...........................     15

                                    ARTICLE V

                    The Depositary, the Depositary's Agents,
                          the Registrar and the Company

SECTION 5. 01.    Maintenance of Offices, Agencies and Transfer Books
                  By the Depositary; Registrar ........................     15

                                       3
<PAGE>

SECTION 5. 02.    Prevention of or Delay in Performance by the Depositary,
                  the Depositary's Agents, the Registrar
                  or the Company ......................................     16

SECTION 5. 03.    Obligations of the Depositary, the Depositary's Agents,
                  The Registrar and the Company .......................     16

SECTION 5. 04.    Resignation and Removal of the Depositary;
                  Appointment of Successor Depositary  ................     17

SECTION 5. 05.    Corporate Notices and Reports  ......................     18

SECTION 5. 06.    Indemnification by the Company ......................     18

SECTION 5. 07.    Charges and Expenses ................................     18

                                   ARTICLE VI

                            Amendment and Termination

SECTION 6. 01.    Amendment ...........................................     19

SECTION 6. 02.    Termination .........................................     19

                                   ARTICLE VII

                                  Miscellaneous

SECTION 7. 01.    Counterparts ........................................     19

SECTION 7. 02.    Exclusive Benefit of Parties  .......................     19

SECTION 7. 03.    Invalidity of Provisions ............................     19

SECTION 7. 04.    Notices    ..........................................     20

SECTION 7. 05.    Depositary's Agents   ...............................     20

SECTION 7. 06.    Holders of Receipts Are Parties  ....................     20

SECTION 7. 07.    Governing Law  ......................................     20

SECTION 7. 08.    Inspection of Deposit Agreement  ....................     21

SECTION 7. 09.    Headings ............................................     21

                                       4
<PAGE>

                DEPOSIT AGREEMENT dated as of September 10, 2002
                 Among HOUSEHOLD INTERNATIONAL, INC., a Delaware
             corporation, COMPUTERSHARE TRUST COMPANY OF NEW YORK, a
                 New York limited purpose trust company, and the
           holders from time to time of the Receipts described herein.

                           WHEREAS it is desired to provide, as hereinafter set
forth in this Deposit Agreement, for the deposit of shares of 7 5/8% Cumulative
Preferred Stock, Series 2002-B, without par value, of Household International,
Inc. with the Depositary for the purposes set forth in this Deposit Agreement
and for the issuance hereunder of Receipts evidencing Depositary Shares in
respect of the Stock so deposited; and

                           WHEREAS the Receipts are to be substantially in the
form of Exhibit A annexed hereto, with appropriate insertions, modifications and
omissions, as hereinafter provided in this Deposit Agreement;

                           NOW, THEREFORE, in consideration of the premises, the
parties hereto agree as follows:

                                    ARTICLE I

                                   Definitions

                           The following definitions shall for all purposes,
unless otherwise indicated, apply to the respective terms used in this Deposit
Agreement:

                           "Certificate" shall mean the certificate of
designation filed with the Secretary of State of Delaware establishing the Stock
as a series of preferred stock of the Company.

                           "Company" shall mean Household International, Inc., a
Delaware corporation, and its successors.

                           "Deposit Agreement" shall mean this Deposit
Agreement, as amended or supplemented from time to time.

                           "Depositary" shall mean Computershare Trust Company
of New York, and any successor as Depositary hereunder.

                           "Depositary Shares" shall mean Depositary Shares,
each representing one-fortieth of a share of Stock and evidenced by a Receipt.

                           "Depositary's Agent" shall mean an agent appointed by
the Depositary pursuant to Section 7.05.

                                       5
<PAGE>

                           "Depositary's Office" shall mean the principal office
of the Depositary in Chicago, Illinois, or New York, New York, at which at any
particular time its depositary receipt business shall be administered.

                           "Receipt" shall mean one of the Depositary Receipts
(each evidencing one Depositary Share) issued hereunder, whether in definitive
or temporary form.

                           "Record Holder" as applied to a Receipt shall mean
the person in whose name a Receipt is registered on the books of the Depositary
maintained for such purpose.

                           "Registrar" shall mean any entity, which shall be
appointed to register ownership and transfers of Receipts as herein provided.

                           "Stock" shall mean shares of the Company's 7 5/8%
Cumulative Preferred Stock, Series 2002-B, without par value.

                           "Transfer Agent" shall mean any entity, which shall
be appointed to serve as transfer agent for the Depositary Shares.

                                   ARTICLE II

                Form of Receipts, Deposit of Stock, Execution and
            Delivery, Transfer, Surrender and Redemption of Receipts

                           SECTION 2. 01. Form and Transfer of Receipts.
Definitive Receipts shall be engraved or printed or lithographed on
steel-engraved borders and shall be substantially in the form set forth in
Exhibit A annexed to this Deposit Agreement, with appropriate insertions,
modifications and omissions, as hereinafter provided. Pending the preparation of
definitive Receipts, the Depositary, upon the written order of the Company or
any holder of Stock, as the case may be, delivered in compliance with Section
2.02, shall execute and deliver temporary Receipts which are printed,
lithographed, typewritten, mimeographed or otherwise substantially of the tenor
of the definitive Receipts in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
persons executing such Receipts may determine, as evidenced by their execution
of such Receipts. If temporary Receipts are issued, the Company will cause
definitive Receipts to be prepared without unreasonable delay. After the
preparation of definitive Receipts, the temporary Receipts shall be exchangeable
for definitive Receipts upon surrender of the temporary Receipts at an office
described in the last paragraph of Section 2.02, without charge to the holder.
Upon surrender for cancellation of any one or more temporary Receipts, the
Depositary shall execute and deliver in exchange therefor definitive Receipts
representing the same number of Depositary Shares as represented by the
surrendered temporary Receipt or Receipts. Such exchange shall be made at the
Company's expense and without any charge therefor. Until so exchanged, the
temporary Receipts shall in all respects be

                                       6
<PAGE>

entitled to the same benefits under this Agreement, and with respect to the
Stock, as definitive Receipts.

                           Receipts shall be executed by the Depositary by the
manual signature of a duly authorized officer of the Depositary; provided, that
such signature may be a facsimile if a Registrar for the Receipts shall have
been appointed and such Receipts are countersigned by manual signature of a duly
authorized officer of the Registrar. No Receipt shall be entitled to any
benefits under this Deposit Agreement or be valid or obligatory for any purpose
unless it shall have been executed manually by a duly authorized officer of the
Depositary or, if a Registrar for the Receipts shall have been appointed, by
manual or facsimile signature of a duly authorized officer of the Depositary and
countersigned manually by a duly authorized officer of such Registrar. The
Depositary or the Registrar, as applicable, shall record on its books each
Receipt so signed and delivered as hereinafter provided.

                           Receipts shall be in denominations of any number of
whole Depositary Shares up to but not in excess of Depositary Shares for any
particular Receipt.

                           Receipts may be endorsed with or have incorporated in
the text thereof such legends or recitals or changes not inconsistent with the
provisions of this Deposit Agreement as may be required by the Company or the
Depositary or required to comply with any applicable law or any regulation
thereunder or with the rules and regulations of any securities exchange upon
which the Stock, the Depositary Shares or the Receipts may be listed or to
conform with any usage with respect thereto, or to indicate any special
limitations or restrictions to which any particular Receipts are subject.

                           Title to Depositary Shares evidenced by a Receipt
which is properly endorsed, or accompanied by a properly executed instrument of
transfer, shall be transferable by delivery with the same effect as in the case
of a negotiable instrument; provided, however, that until transfer of a Receipt
shall be registered on the books of the Depositary as provided in Section 2.04,
the Depositary shall, notwithstanding any notice to the contrary, treat the
record holder thereof at such time as the absolute owner thereof for the purpose
of determining the person entitled to distributions of dividends or other
distributions or to any notice provided for in this Deposit Agreement and for
all other purposes.

                           SECTION 2. 02. Deposit of Stock; Execution and
Delivery of Receipts in Respect Thereof. Subject to the terms and conditions of
this Deposit Agreement, the Company or any holder of Stock may from time to time
deposit shares of the Stock under this Deposit Agreement by delivery to the
Depositary of a certificate or certificates for the Stock to be deposited,
properly endorsed or accompanied, if required by the Depositary, by a duly
executed instrument of transfer or endorsement, in form satisfactory to the
Depositary, together with all such certifications as may be required by the
Depositary in accordance with the provisions of this Deposit Agreement, and
together with a written order of the Company or such holder, as the case may be,
directing the Depositary to execute and deliver to, or upon the written order
of, the person or persons

                                       7
<PAGE>

stated in such order a Receipt or Receipts for the number of Depositary Shares
representing such deposited Stock.

                           Deposited Stock shall be held by the Depositary at
the Depositary's Office or at such other place or places as the Depositary shall
determine.

                           Upon receipt by the Depositary of a certificate or
certificates for Stock deposited in accordance with the provisions of this
Section, together with the other documents required as above specified, and upon
proper registration of the Stock on the books of the Company in the name of the
Depositary or its nominee, the Depositary, subject to the terms and conditions
of this Deposit Agreement, shall execute and deliver, to or upon the order of
the person or persons named in the first paragraph of this Section, a Receipt or
Receipts for the number of Depositary Shares representing the Stock so deposited
and registered in such name or names as may be requested by such person or
persons. The Depositary shall execute and deliver such Receipt or Receipts at
the Depositary's Office or such other offices, if any, as the Depositary may
designate. Delivery at other offices shall be at the risk and expense of the
person requesting such delivery.

                           Other than in the case of splits, combinations or
other reclassifications affecting the Stock, or in the case of dividends or
other distributions of stock, if any, there shall be deposited hereunder not
more than 350,000 shares of Stock.

                           SECTION 2. 03. Redemption of Stock. Whenever the
Company shall elect to redeem shares of Stock in accordance with the provisions
of the Certificate, it shall (unless otherwise agreed in writing with the
Depositary) give the Depositary not less than 46 nor more than 91 days' notice
of the date of such proposed redemption of Stock and of the number of shares
held by the Depositary to be so redeemed, which notice shall be accompanied by a
certificate from the Company stating that such redemption of Stock is in
accordance with the provisions of the Certificate. Such notice, if given more
than 90 days prior to the redemption date, shall be in addition to the notice
required to be given for redemption pursuant to the Certificate. On the date of
such redemption, provided that the Company shall then have paid in full to the
Depositary the redemption price of the Stock to be redeemed, plus any accrued
and unpaid dividends thereon, the Depositary shall redeem the number of
Depositary Shares representing such Stock. The Depositary shall mail notice of
such redemption and the proposed simultaneous redemption of the number of
Depositary Shares representing the Stock to be redeemed, first-class postage
prepaid, not less than 45 and not more than 90 days prior to the date fixed for
redemption of such Stock and Depositary Shares (the "Redemption Date") to the
record holders of the Receipts evidencing the Depositary Shares to be so
redeemed, at the addresses of such holders as they appear on the records of the
Depositary; but neither failure to mail any such notice to one or more such
holders nor any defect in any notice to one or more such holders shall affect
the sufficiency of the proceedings for redemption as to other others. Each such
notice shall state: (i) the Redemption Date; (ii) the number of Depositary
Shares to be redeemed and, if less than all the Depositary Shares held by any
such holder are to be redeemed, the number of such Depositary Shares held by
such holder to be so redeemed; (iii) the redemption price; (iv) the place or
places where Receipts evidencing Depositary Shares are to be surrendered

                                       8
<PAGE>

for payment of the redemption price; and (v) that dividends in respect of the
Stock represented by the Depositary Shares to be redeemed will cease to
accumulate on such Redemption Date. In case less than all the outstanding
Depositary Shares are to be redeemed, the Depositary Shares to be so redeemed
shall be selected by lot or pro rata as may be determined by the Depositary to
be equitable.

                           Notice having been mailed by the Depositary as
aforesaid, from and after the Redemption Date (unless the Company shall have
failed to redeem the shares of Stock to be redeemed by it as set forth in the
Company's notice provided for in the preceding paragraph) all dividends in
respect of the shares of Stock so called for redemption shall cease to
accumulate, the Depositary Shares being redeemed from such proceeds shall be
deemed no longer to be outstanding, all rights of the holders of Receipts
evidencing such Depositary Shares (except the right to receive the redemption
price) shall, to the extent of such Depositary Shares, cease and terminate and,
upon surrender in accordance with such notice of the Receipts evidencing any
such Depositary Shares (properly endorsed or assigned for transfer, if the
Depositary shall so require), such Depositary Shares shall be redeemed by the
Depositary at a redemption price per Depositary Share equal to one-fortieth of
the redemption price per share paid in respect of the shares of Stock plus all
money and other property, if any, represented by such Depositary Shares,
including all amounts paid by the Company in respect of dividends which on the
Redemption Date have accumulated on the shares of Stock to be so redeemed and
have not theretofore been paid.

                           If less than all the Depositary Shares evidenced by a
Receipt are called for redemption, the Depositary will deliver to the holder of
such Receipt upon its surrender to the Depositary, together with the redemption
payment, a new Receipt evidencing the Depositary Shares evidenced by such prior
Receipt and not called for redemption.

                           SECTION 2. 04. Registration of Transfer of Receipts.
Subject to the terms and conditions of this Deposit Agreement, the Depositary
shall register on its books from time to time transfers of Receipts upon any
surrender thereof by the holder in person or by duly authorized attorney,
properly endorsed or accompanied by a properly executed instrument of transfer.
Thereupon the Depositary shall execute a new Receipt or Receipts evidencing the
same aggregate number of Depositary Shares as those evidenced by the Receipt or
Receipts surrendered and deliver such new Receipt or Receipts to or upon the
order of the person entitled thereto.

                           SECTION 2. 05. Split-ups and Combinations of
Receipts; Surrender of Receipts and Withdrawal of Stock. Upon surrender of a
Receipt or Receipts at the Depositary's Office or at such other offices as it
may designate for the purpose of effecting a split-up or combination of such
Receipt or Receipts, and subject to the terms and conditions of this Deposit
Agreement, the Depositary shall execute and deliver a new Receipt requested,
evidencing the aggregate number of Depositary Shares evidenced by the Receipt or
Receipts surrendered.

                           Any holder of a Receipt or Receipts representing any
number of whole shares of Stock may withdraw the Stock and all money and other
property, if any, represented thereby by surrendering such Receipt or Receipts,
at the Depositary's Office or at such other offices as the Depositary may
designate for such withdrawals.

                                       9
<PAGE>

Thereafter, without unreasonable delay, the Depositary shall deliver to such
holder, or to the person or persons designated by such holder as hereinafter
provided, the number of whole shares of Stock and all money and other property,
if any, represented by the Receipt or Receipts for such whole shares of stock so
surrendered for withdrawal, but holders of such whole shares of Stock will not
thereafter be entitled to deposit such Stock hereunder or to receive Depositary
Shares therefor. If a Receipt delivered by the holder to the Depositary in
connection with such withdrawal shall evidence a number of Depositary Shares in
excess of the number of Depositary Shares representing the number of whole
shares of Stock to be so withdrawn, the Depositary shall at the same time, in
addition to such number of whole shares of Stock and such money and other
property, if any, to be so withdrawn, deliver to such holder, or (subject to
Section 2.03) upon his order, a new Receipt evidencing such excess number of
Depositary Shares. Delivery of the Stock and money and other property being
withdrawn may be made by the delivery of such certificates, documents of title
and other instruments as the Depositary may deem appropriate.

                           If the Stock and the money and other property being
withdrawn are to be delivered to a person or persons other than the record
holder of the Receipt or Receipts being surrendered for withdrawal of Stock,
such holder shall execute and deliver to the Depositary a written order so
directing the Depositary and the Depositary may require that the Receipt or
Receipts surrendered by such holder for withdrawal of such shares of Stock be
properly endorsed in blank or accompanied by a properly executed instrument of
transfer.

                           Delivery of the Stock and the money and other
property, if any, represented by Receipts surrendered for withdrawal shall be
made by the Depositary at the Depositary's Office, except that, at the request,
risk and expense of the holder surrendering such Receipt or Receipts and for the
account of the holder thereof, such delivery may be made at such other place as
may be designed by such holder.

                           SECTION 2. 06. Limitations on Execution and Delivery,
Transfer, Surrender and Exchange of Receipts. As a condition precedent to the
execution and delivery, registration of transfer, split-up, combination,
surrender or exchange of any Receipt, the Depositary, any of the Depositary's
Agents or the Company may require payment to it of a sum sufficient for the
payment (or, in the event that the Depositary or the Company shall have made
such payment, the reimbursement to it) of any charges or expenses payable by the
holder of a Receipt pursuant to Section 5.07, may require the production of
evidence satisfactory to it as to the identity and genuineness of any signature
and may also require compliance with such regulations, if any, as the Depositary
or the Company may establish consistent with the provisions of this Deposit
Agreement.

                           The deposit of Stock may be refused, the delivery of
Receipts against Stock may be suspended, the registration of transfer of
Receipts may be refused and the registration of transfer, surrender or exchange
of outstanding Receipts may be suspended (i) during any period when the register
of stockholders of the Company is closed or (ii) if any such action is deemed
necessary or advisable by the Depositary, any of the Depositary's Agents or the
Company at any time or from time to time because of any requirement of law or of
any government or governmental body or commission or under any provision of this
Deposit Agreement. Without limitation of the foregoing, the

                                       10
<PAGE>

Depositary shall not knowingly accept for deposit under this Deposit Agreement
any shares of Stock which are required to be registered under the Securities Act
of 1933, unless a registration statement under such Act is in effect as to such
shares of stock.

                           SECTION 2. 07. Lost Receipts, etc. In case any
Receipt shall be mutilated, destroyed, lost or stolen, the Depositary in its
discretion may execute and deliver a Receipt of like form and tenor in exchange
and substitution for such mutilated Receipt, or in lieu of and in substitution
for such destroyed, lost or stolen Receipt, upon (i) the filing by the holder
thereof with the Depositary of evidence satisfactory to the Depositary of such
destruction or loss or theft of such Receipt, of the authenticity thereof and of
his or her ownership thereof and (ii) the furnishing of the Depositary with
reasonable indemnification satisfactory to it.

                           SECTION 2. 08. Cancellation and Destruction of
Surrendered Receipts. All Receipts surrendered to the Depositary or any
Depositary's Agent shall be canceled by the Depositary. Except as prohibited by
applicable law or regulation, the Depositary is authorized to destroy all
Receipts so canceled.

                                   ARTICLE III

                         Certain Obligations of Holders
                           of Receipts and the Company

                           SECTION 3. 01. Filing Proofs, Certificates and Other
Information. Any holder of a Receipt may be required from time to time to file
such proof of residence, or other matters or other information, to execute such
certificates and to make such representations and warranties as the Depositary
or the Company may reasonably deem necessary or proper. The Depositary or the
Company may withhold the delivery, or delay the registration of transfer,
redemption or exchange, of any Receipt or the withdrawal of the Stock
represented by the Depositary Shares evidenced by any Receipt or the
distribution of any dividend or other distribution or the sale of any rights or
of the proceeds thereof until such proof or other information is filed or such
certificates are executed or such representations and warranties are made.

                           SECTION 3. 02. Payment of Taxes or Other Governmental
Charges. Holders of Receipts shall be obligated to make payments to the
Depositary of certain charges and expenses, as provided in Section 5. 07.
Registration of transfer of any Receipt or any withdrawal of Stock and all money
or other property, if any, represented by the Depositary Shares evidenced by
such Receipt may be refused until any such payment due is made, and any
dividends, interest payments or other distributions may be withheld or any part
of or all the Stock or other property represented by the Depositary Shares
evidenced by such Receipt and not theretofore sold may be sold for the account
of the holder thereof (after attempting by reasonable means to notify such
holder prior to such sale), and such dividends, interest payments or other
distributions or the proceeds of any such sale may be applied to any payment of
such charges or expenses, the holder of such Receipt remaining liable for any
deficiency.

                           SECTION 3. 03. Warranty as to Stock. The Company
hereby represents and warrants that the Stock, when issued, will be validly
issued, fully paid and

                                       11
<PAGE>

nonassessable. Such representation and warranty shall survive the deposit of the
Stock and the issuance of Receipts.

                                   ARTICLE IV

                        The Deposited Securities; Notices

                           SECTION 4. 01. Cash Distributions. Whenever the
Depositary shall receive any cash dividend or other cash distribution on Stock,
the Depositary shall, subject to Sections 3. 01 and 3. 02, distribute to record
holders of Receipts pursuant to Section 4. 04 such amounts of such dividend or
distribution as are, as nearly as practicable, in proportion to the respective
numbers of Depositary Shares evidenced by the Receipts held by such holders;
provided, however, that in case the Company or the Depositary shall be required
to withhold and does withhold from any cash dividend or other cash distribution
in respect of the Stock an amount on account of taxes, the amount made available
for distribution or distributed in respect of Depositary Shares shall be reduced
accordingly. The Depositary shall not be required to attribute to any holder of
Depositary Shares a fraction of one cent, and any amounts held by the Depositary
in such event will be distributed to holders of Receipts in such reasonable
manner as the Company and the Depositary determine.

                           SECTION 4. 02 Distributions Other Than Cash, Rights,
Preferences or Privileges. Whenever the Depositary shall receive any
distribution other than cash, rights, preferences or privileges upon Stock, the
Depositary shall, subject to Sections 3. 01 and 3. 02, distribute to record
holders of Receipts pursuant to Section 4. 04 such amounts of the securities or
property received by it as are, as nearly as practicable, in proportion to the
respective numbers of Depositary Shares evidenced by the Receipts held by such
holders, in any manner that the Depositary may deem equitable and practicable
for accomplishing such distribution. If in the opinion of the Depositary such
distribution cannot be made proportionately among such record holders, or if for
any other reason (including any requirement that the Company or the Depositary
withhold an amount on account of taxes) the Depositary deems, after consultation
with the Company, such distribution not to be feasible, the Depositary may, with
the approval of the Company, adopt such method as it deems equitable and
practicable for the purpose of effecting such distribution, including the sale
(at public or private sale) of the securities or property thus received, or any
part thereof, at such place or places and upon such terms as it may deem proper.
The net proceeds of any such sale shall, subject to Sections 3. 01 and 3. 02, be
distributed or made available for distribution, as the case may be, by the
Depositary to record holders of Receipts as provided by Section 4. 01 in the
case of a distribution received in cash. The Company shall not make any
distribution of such securities unless the Company shall have provided an
opinion of counsel stating that such securities have been registered under the
Securities Act of 1933 or do not need to be registered.

                           SECTION 4. 03. Subscription Rights, Preferences or
Privileges. If the Company shall at any time offer or cause to be offered to the
persons in whose names Stock is recorded on the books of the Company any rights,
preferences or privileges to subscribe for or to purchase any securities or any
rights, preferences or privileges of any other nature, such rights, preferences
or privileges shall in each such

                                       12
<PAGE>

instance be made available by the Depositary to the record holders of Receipts
in such manner as the Depositary may determine, either by the issue to such
record holders of warrants representing such rights, preferences or privileges
or by such other method as may be approved by the Depositary in its discretion
with the approval of the Company; provided, however, that (i) if at the time of
issue or offer of any such rights, preferences or privileges the Depositary
determines that it is not lawful or (after consultation with the Company) not
feasible to make such rights, preferences or privileges available to holders of
Receipts by the issue of warrants or otherwise, or (ii) if and to the extent so
instructed by holders of Receipts who do not desire to exercise such rights,
preferences or privileges, then the Depositary, in its discretion (with the
approval of the Company, in any case where the Depositary has determined that it
is not feasible to make such rights, preferences or privileges available), may,
if applicable laws or the terms of such rights, preferences or privileges permit
such transfer, sell such rights, preferences or privileges at public or private
sale, at such place or places and upon such terms as it may deem proper. The net
proceeds of any such sale shall, subject to Sections 3. 01 and 3. 02, be
distributed by the Depositary to the record holders of Receipts entitled thereto
as provided by Section 4. 01 in the case of a distribution received in cash. The
Company shall not make any distribution of any such rights, preferences or
privileges unless the Company shall have provided an opinion of counsel stating
that such rights, preferences or privileges have been registered under the
Securities Act of 1933 or do not need to be registered.

                           If in order for holders of Receipts to be offered or
sold the securities to which any rights, preferences or privileges relate,
registration under the Securities Act of 1933 of the securities to which such
rights, preferences or privileges relate is required, the Company will promptly
file a registration statement pursuant to such Act with respect to such rights,
preferences or privileges and securities and use its best efforts and take all
steps available to it to cause such registration statement to become effective
sufficiently in advance of the expiration of such rights, preferences or
privileges to enable such holders to exercise such rights, preferences or
privileges. In no event shall the Depositary make available to the holders of
Receipts any right, preference or privilege to subscribe for or to purchase any
securities unless and until such a registration statement shall have become
effective, or unless the offering and registration under the provisions of such
Act.

                           If any other action under the laws of any
jurisdiction or any governmental or administrative authorization, consent or
permit is required in order for such rights, preferences or privileges to be
made available to holders of Receipts, the Company will use its best efforts to
take such action or obtain such authorization, consent or permit sufficiently in
advance of the expiration of such rights, preferences or privileges to enable
such holders to exercise such rights, preferences or privileges.

                           SECTION 4. 04. Notice of Dividends; Fixing of Record
Date for Holders of Receipts. Whenever any cash dividend or other cash
distribution shall become payable or any distribution other than cash shall be
made, or if rights, preferences or privileges shall at any time be offered, with
respect to Stock, or whenever the Depositary shall receive notice of any meeting
of which holders of Stock are entitled to vote or any meeting of which holders
of Stock are entitled to notice, or whenever the Depositary and the Company
shall decide it is appropriate, the Depositary shall in each such instance fix a
record date (which shall be the same date as the record date fixed by the
Company with respect to the Stock) for the determination of the holders of
Receipts

                                       13
<PAGE>

who shall be entitled to receive such dividend, distribution, rights,
preferences or privileges or the net proceeds of the sale thereof, or to give
instructions for the exercise of voting rights at any such meeting, or who shall
be entitled to notice of such meeting or for any other appropriate reason.

                           SECTION 4. 05. Voting Rights. Upon receipt of notice
of any meeting at which the holders of Stock are entitled to vote, the
Depositary shall, as soon as practicable thereafter, mail to the record holders
of Receipts a notice which shall contain (i) such information as is contained in
such notice of meeting and (ii) a statement that the holders may, subject to any
applicable restrictions, instruct the Depositary as to the exercise of the
voting rights pertaining to the amount of Stock represented by their respective
Depositary Shares (including an express indication that instructions may be
given to the Depositary to give a discretionary proxy to a person designated by
the Company) and a brief statement as to the manner in which such instructions
may be given. Upon the written request of the holders of Receipts on the
relevant record date, the Depositary shall endeavor insofar as practicable to
vote or cause to be voted, in accordance with the instructions set forth in such
requests, the maximum number of whole shares of Stock represented by the
Depositary Shares evidenced by all Receipts as to which any particular voting
instructions are received. The company hereby agrees to take all action, which
may be deemed necessary by the Depositary in order to enable the Depositary to
vote such Stock or cause such Stock to be voted. In the absence of specific
instructions from the holder of a Receipt, the Depositary will abstain from
voting (but, at its discretion, not from appearing at any meeting with respect
to such Stock unless directed to the contrary by the holders of all the
Receipts) to the extent of the Stock represented by the Depositary Shares
evidenced by such Receipt.

                           SECTION 4. 06 Changes Affecting Deposited Securities
and Reclassifications, Recapitalizations, etc. Upon any change in par or stated
value, split-up, combination or any other reclassification of the Stock, or upon
any recapitalization, reorganization, merger, amalgamation or consolidation
affecting the Company or to which it is a party, the Depositary may in its
discretion with the approval of, and shall upon the instructions of, the
Company, and (in either case) in such manner as the Depositary may deem
equitable, (i) make such adjustments as are certified by the Company in (x) the
fraction of an interest represented by one Depositary Share in one share of
stock and (y) the ratio of the redemption price per Depositary Share to the
redemption price of a share of Stock, in each case as may be necessary fully to
reflect the effects of such change in par or stated value, split-up, combination
or other reclassification of Stock, or of such recapitalization, reorganization,
merger, amalgamation or consolidation and (ii) treat any securities which shall
be received by the Depositary in exchange for or upon conversion of or in
respect of the Stock as new deposited securities under this Deposit Agreement,
and Receipts then outstanding shall thenceforth represent the new deposited
securities so received in exchange for or upon conversion or in respect of such
Stock. In any such case the Depositary may in its discretion, with the approval
of the Company, execute and deliver additional Receipts, or may call for the
surrender of all outstanding Receipts to be exchanged for new Receipts
specifically describing such new deposited securities. Anything to the contrary
herein notwithstanding, holders of Receipts shall have the right from and after
the effective date of any such change in par or stated value, split-up,
combination or other reclassification of the Stock or any such recapitalization,
reorganization, merger, amalgamation or consolidation to surrender such Receipts
to the Depositary with instructions to convert,

                                       14
<PAGE>

exchange or surrender the Stock represented thereby only into or for, as the
case may be, the kind and amount of shares of stock and other securities and
property and cash into which the Stock represented by such Receipts might have
been converted or for which such Stock might have been exchanged or surrendered
immediately prior to the effective date of such transaction.

                           SECTION 4. 07. Inspection of Reports. The Depositary
shall make available for inspection by holders of Receipts at the Depositary's
Office, and at such other places as it may from time to time deem advisable, any
reports and communications received from the Company which are received by the
Depositary as the holder of Stock.

                           SECTION 4. 08. Lists of Receipt Holders. Promptly
upon request from time to time by the Company, the Depositary shall furnish to
it a list, as of a recent date, of the names, addresses and holdings of
Depositary Shares of all persons in whose names Receipts are registered on the
books of the Depositary.

                                    ARTICLE V

                    The Depositary, the Depositary's Agents,
                          the Registrar and the Company

                           SECTION 5. 01. Maintenance of Offices, Agencies and
Transfer Books by the Depositary; Registrar. Upon execution of this Deposit
Agreement, the Depositary shall maintain at the Depositary's Office, or at the
Registrar's office, at which the Depositary shall have complete access to all
books and records maintained on the Company's behalf, facilities for the
execution and delivery, registration and registration of transfer, surrender an
exchange of Receipts, and at the offices of the Depositary's Agents, if any,
facilities for the delivery, registration of transfer, surrender and exchange of
Receipts, all in accordance with the provisions of this Deposit Agreement.

                           The Depositary shall keep books at the Depositary's
Office for the registration and registration of transfer of Receipts, which
books at all reasonable times shall be open for inspection by the record holders
of Receipts; provided, that any such holder requesting to exercise such right
shall certify to the Depositary that such inspection shall be for a proper
purpose reasonably related to such person's interest as an owner Depositary
Shares evidenced by the Receipts.

                           The Depositary may close such books, at any time or
from time to time, when deemed expedient by it in connection with the
performance of its duties hereunder.

                           The Depositary may, with the approval of the Company,
appoint a Registrar for registration of the Receipts or the Depositary Shares
evidenced thereby. If the Receipts or the Depositary Shares evidenced thereby or
the Stock represented by such Depositary Shares shall be listed on the New York
Stock Exchange, the Depositary will appoint a Registrar (acceptable to the
Company) for registration of such Receipts or Depositary Shares in accordance
with any requirements of such Exchange. Such Registrar (which may be the
Depositary if so permitted by the requirements of such

                                       15
<PAGE>

Exchange) may be removed and a substitute registrar appointed by the Depositary
upon the request or with the approval of the Company. If the Receipts, such
Depositary Shares or such Stock are listed on one or more other stock exchanges,
the Depositary will, at the request of the Company, arrange such facilities for
the delivery, registration, registration of transfer, surrender and exchange of
such Receipts, such Depositary Shares or such Stock as may be required by law or
applicable stock exchange regulation.

                           SECTION 5. 02. Prevention of or Delay in Performance
by the Depositary, the Depositary's Agents, the Registrar or the Company.
Neither the Depositary nor any Depositary's Agent nor any Registrar nor the
Company shall incur any liability to any holder of any Receipt if by reason of
any provision of any present or future law, or regulation thereunder, of the
United States of America or of any other governmental authority or, in the case
of the Depositary, the Depositary's Agent or the Registrar, by reason of any
provision, present or future, of the Company's Certificate of Incorporation
(including the Certificate) or by reason of any act of God or war or other
circumstance beyond the control of the relevant party, the Depositary, the
Depositary's Agent, the Registrar or the Company shall be prevented or forbidden
from, or subject to any penalty on account of, doing or performing any act or
thing which the terms of this Deposit Agreement provide shall be done or
performed; nor shall the Depositary, any Depositary's Agent, any Registrar or
the Company incur any liability to any holder of a Receipt (i) by reason of any
nonperformance or delay, caused as aforesaid, in the performance of any act or
thing which the terms of this Deposit Agreement provide shall or may be done or
performed, or (ii) by reason of any exercise of, or failure to exercise, any
discretion provided for in this Deposit Agreement except, in case of any such
exercise or failure to exercise discretion not caused as aforesaid, if caused by
the negligence or willful misconduct of the party charged with such exercise or
failure to exercise.

                           SECTION 5. 03. Obligations of the Depositary, the
Depositary's Agents, the Registrar and the Company. Neither the Depositary nor
its affiliates nor any Depositary's Agent nor any Registrar nor any Transfer
Agent nor the Company assumes any obligation or shall be subject to any
liability under this Deposit Agreement to holders of Receipts other than for its
negligence or willful misconduct. Under no circumstances shall the Depositary or
its affiliates or agents be liable for any special, punitive, indirect,
incidental, punitive or consequential loss or damage of any kind whatsoever
(including, but not limited to, lost profits), even if they have been advised of
the possibility of such loss or damage.

                           Neither the Depositary nor its affiliates nor any
Depositary's Agent nor any Registrar nor any Transfer Agent nor the Company
shall be under any obligation to appear in, prosecute or defend any action, suit
or other proceeding in respect of the Stock, the Depositary Shares or the
Receipts which in its opinion may involve it in expense or liability unless
indemnity satisfactory to it against all expense and liability be furnished as
often as may be required.

                           Neither the Depositary nor its affiliates nor any
Depositary's Agent nor any Registrar nor any Transfer Agent nor the Company
shall be liable for any action or any failure to act by it in reliance upon the
written advice of legal counsel or accountants, or information from any person
presenting Stock for deposit, any holder of a Receipt or any other person
believed by it in good faith to be competent to give such

                                       16
<PAGE>

information. The Depositary, any Depositary's Agent, any Registrar and the
Company may each rely and shall each be protected in acting upon any written
notice, request, direction or other document believed by it to be genuine and to
have been signed or presented by the proper party or parties.

                           The Depositary shall not be responsible for any
failure to carry out any instruction to vote any of the shares of Stock or for
the manner or effect of any such vote made, as long as any such action or
non-action is in good faith.

                           The Depositary undertakes, and any Registrar shall be
required to undertake, to perform such duties and only such duties as are
specifically set forth in this Agreement and no implied covenants or obligations
shall be read into this Agreement against the Depositary or any Registrar.

                           The Depositary will indemnify the Company against any
liability which may directly arise out of acts performed or omitted by the
Depositary or its agents due to its or their negligence or bad faith.

                           The Depositary, its affiliates, the Depositary's
Agents, and any Registrar or Transfer Agent may own and deal in any class of
securities of the Company and its affiliates and in Receipts. The Depositary or
its affiliates may also act as transfer agent or registrar of any of the
securities of the Company and its affiliates.

                           SECTION 5. 04. Resignation and Removal of the
Depositary; Appointment of Successor Depositary. The Depositary may at any time
resign as Depositary hereunder by having notice of its election to do so
delivered to the Company, such resignation to take effect upon the appointment
of a successor Depositary and its acceptance of such appointment as hereinafter
provided.

                           The Depositary may at any time be removed by the
Company by notice of such removal delivered to the Depositary, such removal to
take effect upon the appointment of a successor Depositary and its acceptance of
such appointment as hereinafter provided.

                           In case at any time the Depositary acting hereunder
shall resign or be removed, the Company shall, within 60 days after the delivery
of the notice of resignation or removal, as the case may be, appoint a successor
Depositary, which shall be a bank or trust company having its principal office
in the United States of America and having a combined capital and surplus of at
least $50,000,000. If no successor Depositary shall have been so appointed and
have accepted appointment within 60 days after delivery of such notice, the
resigning or removed Depositary may petition any court of competent jurisdiction
for the appointment of a successor Depositary. Every successor Depositary shall
execute and deliver to its predecessor and to the Company an instrument in
writing accepting its appointment hereunder, and thereupon such successor
Depositary, without any further act or deed, shall become fully vested with all
the rights, powers, duties and obligations of its predecessor and for all
purposes shall be the Depositary under this Deposit Agreement, and such
predecessor, upon payment of all sums due it and on the written request of the
Company, shall execute and deliver an instrument transferring to such successor
all rights and powers of such predecessor hereunder, shall duly assign, transfer
and deliver all right, title and interest in the Stock and any moneys or

                                       17
<PAGE>

property held hereunder to such successor, and shall deliver to such successor a
list of the record holders of all outstanding Receipts. Any successor Depositary
shall promptly mail notice of its appointment to the record holders of Receipts.

                           Any corporation into or with which the Depositary may
be merged, consolidated or converted shall be the successor of such Depositary
without the execution or filing of any document or any further act, and notice
thereof shall not be required hereunder. Such successor Depositary may
authenticate the Receipts in the name of the predecessor Depositary or in the
name of the successor Depositary.

                           SECTION 5. 05. Corporate Notices and Reports. The
Company agrees that it will transmit to the record holders of Receipts, in each
case at the addresses furnished to it pursuant to Section 4. 08, all notices and
reports (including without limitation financial statements) required by law, by
the rules of any national securities exchange upon which the Stock, the
Depositary Shares or the Receipts are listed or by the Company's Certificate of
Incorporation (including the Certificate) to be furnished by the Company to
holders of Stock. Such transmission will be at the Company's expense.

                           SECTION 5. 06 Indemnification by the Company. The
Company shall indemnify the Depositary, its affiliates, any of Depositary's
Agents and any Registrar or Transfer Agent against, and hold each of them
harmless from, any loss, liability, damage or expense (including the reasonable
costs and expenses of defending itself) which may arise out of (a) acts
performed or omitted in connection with this Agreement and the Receipts (i) by
the Depositary, any Registrar or Transfer Agent or any of their respective
agents (including any Depositary's Agent), except for any liability arising out
of the gross negligence or bad faith on the respective parts of any such person
or persons, or (ii) by the Company or any of its agents, or (b) the offer, sale
or registration of the Receipts, Depositary Shares or the Stock pursuant to the
provisions hereof. The obligations of the Company set forth in this Section 5.
06 shall survive any succession of any Depositary, Registrar or Depositary's
Agent.

                           SECTION 5. 07. Charges and Expenses. The Company
shall pay all transfer and other taxes and governmental charges arising solely
from the existence of the depositary arrangements. The Company shall pay all
charges of the Depositary in connection with the initial deposit of the Stock
and the initial issuance of the Depositary Shares, redemption of the Stock at
the option of the Company and all withdrawals of shares of the Stock by owners
of Depositary Shares. All other transfer and other taxes and governmental
charges shall be at the expense of holders of Depositary Shares. If, at the
request of a holder of Receipts, the Depositary incurs charges or expenses for
which it is not otherwise liable hereunder, such holder will be liable for such
charges and expenses. All other charges and expenses of the Depositary and any
Depositary's Agent hereunder and of any Registrar (including, in each case, fees
and expenses of counsel) incident to the performance of their respective
obligations hereunder will be paid upon consultation and agreement between the
Depositary and the Company as to the amount and nature of such charges and
expenses. The Depositary shall present its statement for charges and expenses to
the Company once every three months or at such other intervals as the Company
and the Depositary may agree.

                                       18
<PAGE>

                                   ARTICLE VI

                            Amendment and Termination

                           SECTION 6. 01. Amendment. The form of the Receipts
and any provisions of this Deposit Agreement may at any time and from time to
time be amended by agreement between the Company and the Depositary in any
respect which they may deem necessary or desirable; provided, however, that no
such amendment (other than any change in the fees of any Depositary or
Registrar, which shall go into effect not sooner than three months after notice
thereof to the holders of the Receipts) which shall materially and adversely
alter the rights of the holders of Receipts shall be effective unless such
amendment shall have been approved by the holders of at least a majority of the
Depositary Shares then outstanding. Every holder of an outstanding Receipt at
the time any such amendment becomes effective shall be deemed, by continuing to
hold such Receipt, to consent and agree to such amendment and to be bound by the
Deposit Agreement as amended thereby.

                           SECTION 6. 02. Termination. This agreement may be
terminated by the Company or the Depositary only after (i) all outstanding
Depositary Shares shall have been redeemed pursuant to Section 2. 03 or (ii)
there shall have been made a final distribution in respect of the Stock in
connection with any liquidation, dissolution or winding up of the Company and
such distribution shall have been distributed to the holders of Depositary
Shares pursuant to Section 4. 01 or 4. 02, as applicable.

                           Upon the termination of this Deposit Agreement, the
Company shall be discharged from all obligations under this Deposit Agreement
except for its obligations to the Depositary, any Depositary's Agent and any
Registrar under Sections 5. 06 and 5. 07.

                                   ARTICLE VII

                                  Miscellaneous

                           SECTION 7. 01. Counterparts. This Deposit Agreement
may be executed in any number of counterparts, and by each of the parties hereto
on separate counterparts, each of which counterparts, when so executed and
delivered, shall be deemed an original, but all such counterparts taken together
shall constitute one and the same instrument.

                           SECTION 7. 02. Exclusive Benefit of Parties. This
Deposit Agreement is for the exclusive benefit of the parties hereto, and their
respective successors hereunder, and shall not be deemed to give any legal or
equitable right, remedy or claim to any other person whatsoever.

                           SECTION 7. 03. Invalidity of Provisions. In case any
one or more of the provisions contained in this Deposit Agreement or in the
Receipts should be or become invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein or therein shall in no way be affected, prejudiced or disturbed thereby.

                                       19
<PAGE>

                           SECTION 7. 04. Notices. Any and all notices to be
given to the Company hereunder or under the Receipts shall be in writing and
shall be deemed to have been duly given if personally delivered or sent by mail
or telegram or telex confirmed by letter, addressed to the Company at 2700
Sanders Road, Prospect Heights, Illinois 60070, to the attention of the
Secretary, or at any other address of which the Company shall have notified the
Depositary in writing.

                           Any and all notices to be given to the Depositary
hereunder or under the Receipts shall be in writing and shall be deemed to have
been duly given if personally delivered or sent by mail or by telegram or telex
confirmed by letter, addressed to the Depositary at the Depositary's Office, at
2 North LaSalle Street, Chicago, Illinois 60602, or at any other address of
which the Depositary shall have notified the Company in writing.

                           Any and all notices to be given to any record holder
of a Receipt hereunder or under the Receipts shall be in writing and shall be
deemed to have been duly given if personally delivered or sent by mail or by
telegram or telex confirmed by letter, addressed to such record holder at the
address of such record holder as it appears on the books of the Depositary, or
if such holder shall have filed with the Depositary a written request that
notices intended for such holder be mailed to some other address, at the address
designated in such request.

                           Delivery of a notice sent by mail or by telegram or
telex shall be deemed to be effected at the time when a duly addressed letter
containing the same (or a confirmation thereof in the case of a telegram or
telex message) is deposited, postage prepaid, in a post office letter box. The
Depositary or the Company may, however, act upon any telegram or telex message
received by it from the other or from any holder of a Receipt, notwithstanding
that such telegram or telex message shall not subsequently be confirmed by
letter or as aforesaid.

                           SECTION 7. 05. Depositary's Agents. The Depositary
may from time to time appoint, with the prior approval of the Company,
Depositary's Agents to act in any respect for the Depositary for the purposes of
this Deposit Agreement and may at any time appoint additional Depositary's
Agents and vary or terminate the appointment of such Depositary's Agents.

                           The Company has also requested that the Depositary's
affiliate, Computershare Investor Services, LLC, act as Registrar and Transfer
Agent.

                           SECTION 7. 06. Holders of Receipts Are Parties. The
holders of Receipts from time to time shall be parties to this Deposit Agreement
and shall be bound by all of the terms and conditions hereof and of the Receipts
by acceptance of delivery thereof.

                           SECTION 7. 07. Governing Law. This Deposit Agreement
and the Receipts and all rights hereunder and thereunder and provisions hereof
and thereof shall be governed by, and constructed in accordance with, the laws
of the State of Illinois, without reference to choice of law principles.

                                       20
<PAGE>

                           SECTION 7. 08. Inspection of Deposit Agreement.
Copies of this Deposit Agreement shall be filed with the Depositary and the
Depositary's Agents and shall be open to inspection during business hours at the
Depositary's Office and the respective offices of the Depositary's Agents, if
any, by any holder of a Receipt.

                           SECTION 7. 09. Headings. The headings or articles and
sections in this Deposit Agreement and in the form of the Receipt set forth in
Exhibit A hereunto have been inserted for convenience only and are not to be
regarded as a part of this Deposit Agreement or the Receipts or to have any
bearing upon the meaning or interpretation of any provision contained herein or
in the Receipts.

                                       21
<PAGE>

                           IN WITNESS WHEREOF, the Company and the Depositary
have duly executed this Agreement as of the day end year first above set forth
and all holders of Receipts shall become parties hereto by and upon acceptance
by them of delivery of Receipts issued in accordance with the terms hereof.

                                            HOUSEHOLD INTERNATIONAL, INC.

                                            By:
                                                --------------------------------

Attested by:

--------------------
Patrick D. Schwartz
Assistant Secretary

                                            COMPUTERSHARE TRUST COMPANY OF
                                            NEW YORK, as Depositary

                                            By:
                                                --------------------------------

Attested by:

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

                                       22

<PAGE>
                                                                      Exhibit A

NUMBER                                                        DEPOSITARY SHARES

                    DEPOSITARY RECEIPT FOR DEPOSITARY SHARES,
                 REPRESENTING 7 5/8% CUMULATIVE PREFERRED STOCK,
                        SERIES 2002-B, WITHOUT PAR VALUE

                          HOUSEHOLD INTERNATIONAL, INC.
                                                               SEE REVERSE SIDE
                                                                 FOR ADDITIONAL
                                                                    INFORMATION

              INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE
  THIS DEPOSITARY RECEIPT IS TRANSFERABLE IN CHICAGO OR IN THE CITY OF NEW YORK

                                                                          CUSIP

COMPUTERSHARE TRUST COMPANY OF NEW YORK, as Depositary (the "Depositary"),
hereby certifies that

is the register owner of
                                                              DEPOSITARY SHARES

("Depositary Shares"), each Depositary Share representing one fortieth (1/40) of
one share of 7 5/8 % Cumulative Preferred Stock, Series 2002-B, without par
value (stated value $1000 per share), of Household International, Inc., a
Delaware corporation (the "Corporation"), on deposit with the Depositary,
subject to the terms and entitled to the benefits of the Deposit Agreement dated
as of September 10, 2002 (the "Depositary Agreement"), between the Corporation
and the Depositary. By accepting this Depositary Receipt the holder hereof
becomes a party to and agrees to be bound by all the terms and conditions of the
Depositary Agreement. This Depositary Receipt shall not be valid or obligatory
for any purpose or entitled to any benefits under the Deposit Agreement unless
it shall have been executed by the Depositary by the manual signature of a duly
authorized officer or, if executed in facsimile by the Depositary, countersigned
by a Registrar in respect of the Depositary Receipts by the manual signature of
a duly authorized officer thereof.

Dated:
                                            Countersigned and Registered:
COMPUTERSHARE TRUST COMPANY OF NEW YORK     COMPUTERSHARE INVESTOR SERVICES, LLC
Depositary                                  Registrar

By                                          By

Authorized Officer                          Authorized Officer

<PAGE>

                              (Reverse of Receipt)

                          HOUSEHOLD INTERNATIONAL, INC.

     HOUSEHOLD INTERNATIONAL, INC. WILL FURNISH WITHOUT CHARGE TO EACH
RECEIPTHOLDER WHO SO REQUESTS A COPY OF THE DEPOSIT AGREEMENT AND A STATEMENT OR
SUMMARY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING,
OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF WHICH
THE CORPORATION IS AUTHORIZED TO ISSUE AND OF THE QUALIFICATIONS, LIMITATIONS OR
RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS. ANY SUCH REQUESTS IS TO BE
ADDRESSED TO THE OFFICE OF THE SECRETARY OF THE CORPORATION.

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

     The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations.

<TABLE>
<S><C>

     TEN COM  - as tenants in common                      UNIF GIFT MIN ACT - __________________Custodian __________________
     TEN ENT  - as tenants by the entireties                                       (Cust)                    (Minor)
     JT TEN   - as joint tenants with right of                                under Uniform Gifts to Minors Act
                  survivorship and not as tenants
                  in common                                                   _______________________________________
                                                                                             (State)

                             Additional abbreviations may also be used though not in the above list

For value received, ____________________________________________________________________hereby sell; assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

___________________________________________________________________________________________________________________________________
                           PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

__________________________________________________________________________________________________________________ Depositary Shares
represented by the within Receipt, and do hereby irrevocably constitute and appoint

___________________________________________________________________________________________________________________________________

___________________________________________________________________________________________________________________________Attorney
to transfer the said Depositary Shares on the books of the within-named Depositary with full power of substitution in the premises.

Dated: ________________________________

                                                              _____________________________________________________________________
                                                              NOTICE: The signature to this assignment must correspond with the name
                                                              as written upon the face of this receipt in every particular, without
                                                              alteration or enlargement or any change whatever.
</TABLE>

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