Document:

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                                                                     Exhibit 4.2
                                                                  EXECUTION COPY

                              AMENDED AND RESTATED

                                 TRUST AGREEMENT

                                     between

                     HOUSEHOLD AUTO RECEIVABLES CORPORATION

                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                          Dated as of November 18, 2002

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                                TABLE OF CONTENTS

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                                                                                                      Page
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ARTICLE I Definitions....................................................................................1

     Section 1.1.       Capitalized Terms................................................................1
     Section 1.2.       Other Definitional Provisions....................................................3
     Section 1.3.       Action by or Consent of Noteholders and Certificateholders.......................3
     Section 1.4.       Material Adverse Effect..........................................................4

ARTICLE II Organization..................................................................................4

     Section 2.1.       Name.............................................................................4
     Section 2.2.       Office...........................................................................4
     Section 2.3.       Purposes and Powers..............................................................4
     Section 2.4.       Appointment of Owner Trustee.....................................................5
     Section 2.5.       Initial Capital Contribution of Owner Trust Estate...............................5
     Section 2.6.       Declaration of Trust.............................................................5
     Section 2.7.       Liability........................................................................6
     Section 2.8.       Title to Owner Trust Estate......................................................6
     Section 2.9.       Situs of Owner Trust Estate......................................................6
     Section 2.10.      Representations and Warranties of the Depositor..................................6
     Section 2.11.      Federal Income Tax Allocations...................................................8
     Section 2.12.      Covenants of the Depositor.......................................................8
     Section 2.13.      Covenants of the Certificateholders..............................................9

ARTICLE III Certificates and Transfer of Interests......................................................10

     Section 3.1.       Initial Ownership...............................................................10
     Section 3.2.       The Certificates................................................................10
     Section 3.3.       Authentication of Certificates..................................................11
     Section 3.4.       Registration of Transfer and Exchange of Certificates...........................11
     Section 3.5.       Mutilated, Destroyed, Lost or Stolen Certificates...............................12
     Section 3.6.       Persons Deemed Certificateholders...............................................13
     Section 3.7.       Access to List of Certificateholders' Names and Addresses.......................13
     Section 3.8.       Maintenance of Office or Agency.................................................13
     Section 3.9.       ERISA Restrictions..............................................................13
     Section 3.10.      Securities Matters..............................................................14
     Section 3.11.      Distributions...................................................................14
     Section 3.12.      Certificate Paying Agent........................................................14

ARTICLE IV Voting Rights and Other Actions..............................................................14

     Section 4.1.       Prior Notice to Holders with Respect to Certain Matters.........................14
     Section 4.2.       Action by Certificateholders with Respect to Certain Matters....................15
     Section 4.3.       Action by Certificateholders with Respect to Bankruptcy.........................15
     Section 4.4.       Restrictions on Certificateholders' Power.......................................15
     Section 4.5.       Majority Control................................................................16
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     Section 4.6.       Certain Litigation Matters......................................................16

ARTICLE V Certain Duties................................................................................17

     Section 5.1.       Accounting and Records to the Noteholders, Certificateholders,
                        the Internal Revenue Service and Others.........................................17
     Section 5.2.       Signature on Returns; Tax Matters Partner.......................................17

ARTICLE VI Authority and Duties of Owner Trustee........................................................18

     Section 6.1.       General Authority...............................................................18
     Section 6.2.       General Duties..................................................................18
     Section 6.3.       Action upon Instruction.........................................................18
     Section 6.4.       No Duties Except as Specified in this Agreement or in Instructions..............19
     Section 6.5.       No Action Except under Specified Documents or Instructions......................19
     Section 6.6.       Restrictions....................................................................20

ARTICLE VII Concerning the Owner Trustee................................................................20

     Section 7.1.       Acceptance of Trust and Duties..................................................20
     Section 7.2.       Furnishing of Documents.........................................................22
     Section 7.3.       Representations and Warranties..................................................22
     Section 7.4.       Reliance; Advice of Counsel.....................................................22
     Section 7.5.       Not Acting in Individual Capacity...............................................23
     Section 7.6.       Owner Trustee Not Liable for Certificates or Receivables........................23
     Section 7.7.       Owner Trustee May Own Certificates and Notes....................................24
     Section 7.8.       Payments from Owner Trust Estate................................................24
     Section 7.9.       Doing Business in Other Jurisdictions...........................................24

ARTICLE VIII Compensation of Owner Trustee..............................................................24

     Section 8.1.       Owner Trustee's Fees and Expenses...............................................24
     Section 8.2.       Indemnification.................................................................24
     Section 8.3.       Payments to the Owner Trustee...................................................25
     Section 8.4.       Non-recourse Obligations........................................................25

ARTICLE IX Termination of Agreement.....................................................................25

     Section 9.1.       Termination of Agreement........................................................25

ARTICLE X Successor Owner Trustees and Additional Owner Trustees........................................27

     Section 10.1.      Eligibility Requirements for Owner Trustee......................................27
     Section 10.2.      Resignation or Removal of Owner Trustee.........................................27
     Section 10.3.      Successor Owner Trustee.........................................................28
     Section 10.4.      Merger or Consolidation of Owner Trustee........................................29
     Section 10.5.      Appointment of Co-Trustee or Separate Trustee...................................29

ARTICLE XI Miscellaneous................................................................................30
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     Section 11.1.      Supplements and Amendments......................................................30
     Section 11.2.      No Legal Title to Owner Trust Estate in Certificateholders......................31
     Section 11.3.      Limitations on Rights of Others.................................................31
     Section 11.4.      Notices.........................................................................32
     Section 11.5.      Severability....................................................................32
     Section 11.6.      Separate Counterparts...........................................................32
     Section 11.7.      Assignments; Support Provider...................................................32
     Section 11.8.      Covenants of the Depositor......................................................33
     Section 11.9.      No Petition.....................................................................33
     Section 11.10.     No Recourse.....................................................................33
     Section 11.11.     Headings........................................................................33
     Section 11.12.     GOVERNING LAW...................................................................33
     Section 11.13.     Master Servicer.................................................................33
     Section 11.14.     Third-Party Beneficiary.........................................................33
</Table>

                                    EXHIBITS

Exhibit A   Form of Certificate
Exhibit B   Form of Certificate of Trust

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        THIS AMENDED AND RESTATED TRUST AGREEMENT, dated as of November 18,
2002, between HOUSEHOLD AUTO RECEIVABLES CORPORATION, a Nevada corporation (the
"Depositor") and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as
Owner Trustee (the "Owner Trustee"), amends and restates in its entirety that
certain Trust Agreement, dated as of November 18, 2002, between the Depositor
and the Owner Trustee.

                                    ARTICLE I

                                   DEFINITIONS

        Section 1.1.   CAPITALIZED TERMS. For all purposes of this Agreement,
the following terms shall have the meanings set forth below:

        "Agreement" shall mean this Amended and Restated Agreement, as the same
may be amended and supplemented from time to time.

        "Benefit Plan" shall have the meaning assigned to such term in Section
3.9.

        "Certificates" means, if the Depositor elects (i) to evidence its
interest in certificated form pursuant to Section 3.2, the certificate
substantially in the form of Exhibit A or (ii) to have its interest be
uncertified pursuant to Section 3.2, such uncertificated interest.

        "Certificate Majority" shall have the meaning assigned to such term in
Section 4.1.

        "Certificate Paying Agent" means U.S. Bank National Association, a
national banking association.

        "Certificate Register" and "Certificate Registrar" shall mean the
register mentioned and the registrar appointed pursuant to Section 3.4.

        "Certificate of Trust" shall mean the Certificate of Trust in the form
of Exhibit B to be filed for the Trust pursuant to Section 3810(a) of the
Statutory Trust Statute.

        "Code" shall mean the Internal Revenue Code of 1986, as amended.

        "Corporate Trust Office" shall mean, with respect to the Owner Trustee,
the principal corporate trust office of the Owner Trustee located at Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-1600,
Attention: Corporate Trust Administration, or at such other address as the Owner
Trustee may designate by notice to the Certificateholders and the Depositor, or
the principal corporate trust office of any successor Owner Trustee (the address
of which the successor owner trustee will notify the Certificateholders, the
Insurer and the Depositor).

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        "Depositor" shall mean Household Auto Receivables Corporation in its
capacity as Depositor hereunder.

        "ERISA" shall have the meaning assigned to such term in Section 3.9.

        "Expenses" shall have the meaning assigned to such term in Section 8.2.

        "Holder" or "Certificateholder" shall mean a Person in whose name a
Certificate is registered on the Certificate Register.

        "Household" shall mean Household Finance Corporation.

        "Indemnified Parties" shall have the meaning assigned to such term in
Section 8.2.

        "Owner Trust Estate" shall mean all right, title and interest of the
Trust in and to the property and rights assigned to the Trust pursuant to
Article II of the Master Sale and Servicing Agreement, all funds on deposit from
time to time in the Trust Accounts and all other property of the Trust from time
to time, including any rights of the Owner Trustee and the Trust pursuant to the
Master Sale and Servicing Agreement and each Related Document.

        "Owner Trustee" shall mean Wilmington Trust Company, a Delaware banking
corporation, not in its individual capacity but solely as Owner Trustee under
this Agreement, and any successor Owner Trustee hereunder.

        "Percentage Interest" shall mean, with respect to a Certificate, the
portion of the interests in the Trust represented by a Certificate, as reflected
in the Certificate Register.

        "Secretary of State" shall mean the Secretary of State of the State of
Delaware.

        "Securities Act" shall have the meaning assigned to such term in Section
3.4.

        "Series Trust Estate" shall mean the property granted to the Indenture
Trustee on behalf of the Trust pursuant to Section 1.02 of the Series
Supplement.

        "Statutory Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 DEL. CODE Section 3801 et seq. as the same may be amended from
time to time.

        "Treasury Regulations" shall mean regulations, including proposed or
temporary regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

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        "Trust" shall mean the trust established by this Agreement.

        Section 1.2.   OTHER DEFINITIONAL PROVISIONS. (a) Capitalized terms used
herein and not otherwise defined have the meanings assigned to them in the
Master Sale and Servicing Agreement or, if not defined therein, in the
Indenture; PROVIDED THAT, as used herein, Series means only the Series of Notes
and Series of Certificates with respect to which the Trust is the Issuer and
only such Series Trust Estates included in the Owner Trust Estate.

        (b)     All terms defined in this Agreement shall have the defined
meanings when used in any Certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

        (c)     As used in this Agreement and in any Certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Agreement or in any such certificate or other document, and
accounting terms partly defined in this Agreement or in any such certificate or
other document to the extent not defined, shall have the respective meanings
given to them under generally accepted accounting principles as in effect on the
date of this Agreement or any such certificate or other document, as applicable.
To the extent that the definitions of accounting terms in this Agreement or in
any such certificate or other document are inconsistent with the meanings of
such terms under generally accepted accounting principles, the definitions
contained in this Agreement or in any such certificate or other document shall
control.

        (d)     The words "hereof," "herein," "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; Section and Exhibit
references contained in this Agreement are references to Sections and Exhibits
in or to this Agreement unless otherwise specified; and the term "including"
shall mean "including without limitation."

        (e)     The definitions contained in this Agreement are applicable to
the singular as well as the plural forms of such terms and to the masculine as
well as to the feminine and neuter genders of such terms.

        Section 1.3.   ACTION BY OR CONSENT OF NOTEHOLDERS AND
CERTIFICATEHOLDERS. Whenever any provision of this Agreement refers to action to
be taken, or consented to, by Noteholders or Certificateholders, such provision
shall be deemed to refer to the Certificateholder or Noteholder, as the case may
be, of record as of the Record Date immediately preceding the date on which such
action is to be taken, or consent given, by Noteholders or Certificateholders.
Solely for the purposes of any action to be taken, or consented to, by
Noteholders, any Note registered in the name of the Depositor or any Affiliate
thereof shall be deemed not to be outstanding; PROVIDED, HOWEVER, that, solely
for the purpose of determining whether the Indenture Trustee is entitled to rely
upon any such action or consent, only Notes which the Owner Trustee or the
Indenture Trustee knows to be so owned shall be so disregarded.

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        Section 1.4.   MATERIAL ADVERSE EFFECT. Whenever a determination is to
be made under this Agreement as to whether a given event, action, course of
conduct or set of facts or circumstances could or would have a material adverse
effect on the Noteholders or Certificateholders (or any similar or analogous
determination), such determination shall be made without taking into account the
funds available from claims under any policy or other Series Support.

                                   ARTICLE II

                                  ORGANIZATION

        Section 2.1.   NAME. There is hereby formed a trust to be known as
"Household Automotive Trust 2002-3", in which name the Owner Trustee may conduct
the business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued.

        Section 2.2.   OFFICE. The principal place of business of the Trust for
purposes of Delaware law shall be in care of the Owner Trustee at the Corporate
Trust Office of the Owner Trustee or at such other address as the Owner Trustee
may designate by written notice to the Certificateholders, the Insurer and the
Depositor. The Trust may establish additional offices located at such place or
places inside or outside the State of Delaware as the Owner Trustee may
designate from time to time by written notice to the Certificateholders and the
Depositor. Initially, the Trust shall establish one such additional office at
the Corporate Trust Office of the Owner Trustee.

        Section 2.3.   PURPOSES AND POWERS. (a) The purpose of the Trust is, and
the Trust shall have the power and authority, to engage in the following
activities:

        (i)     to issue the Notes pursuant to the Indenture and the Series
     Supplement and the Certificates pursuant to this Agreement and the Series
     Supplement, and to sell the Notes;

        (ii)    with the proceeds of the sale of the Notes, to fund the expense
     of obtaining any Series Support and to pay the organizational, start-up and
     transactional expenses of the Trust and to pay the balance to the Depositor
     pursuant to the Master Sale and Servicing Agreement;

        (iii)   with respect to the Series Trust Estate, to assign, grant,
     transfer, pledge, mortgage and convey the Series Trust Estate to the
     Indenture Trustee pursuant to the Indenture and the Series Supplement for
     the benefit of the Secured Parties;

        (iv)    to enter into and perform its obligations under the Basic
     Documents and the Related Documents, in each case, to which it is a party;

        (v)     to acquire, hold and manage the Owner Trust Estate;

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        (vi)    to make distributions on the Certificates in accordance with
     their respective terms;

        (vii)   to own Class SV Preferred Stock of the Depositor;

        (viii)  to engage in those activities, including entering into
     agreements, that are necessary, suitable or convenient to accomplish the
     foregoing or are incidental thereto or connected therewith; and

        (ix)    subject to compliance with the Basic Documents and the Related
     Documents, to engage in such other activities as may be required in
     connection with conservation of the Owner Trust Estate and the making of
     distributions to the Certificateholders and the Noteholders.

        (b)     The Trust is hereby authorized to engage in the foregoing
activities. The Trust shall not engage in any activity other than in connection
with the foregoing or other than as required or authorized by the terms of this
Agreement, the Basic Documents or any Related Documents.

        Section 2.4.   APPOINTMENT OF OWNER TRUSTEE. The Depositor hereby
appoints the Owner Trustee as trustee of the Trust effective as of the date
hereof, to have all the respective rights, powers and duties set forth herein.

        Section 2.5.   INITIAL CAPITAL CONTRIBUTION OF OWNER TRUST ESTATE. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, on behalf of the Trust, as of the date hereof, the sum of $1,000 and
one share of Class SV Preferred Stock of the Depositor. The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial Owner Trust Estate.
The Depositor shall pay organizational expenses of the Trust as they may arise.

        Section 2.6.   DECLARATION OF TRUST. The Owner Trustee hereby declares
that it will hold the Owner Trust Estate in trust upon and subject to the
conditions set forth herein, on behalf of the Trust, for the use and benefit of
the Certificateholders, subject to the obligations of the Trust under the Basic
Documents. It is the intention of the parties hereto that the Trust constitute a
statutory trust under the Statutory Trust Statute and that this Agreement
constitute the governing instrument of such statutory trust. It is the intention
of the parties hereto that, solely for income and franchise tax purposes, the
Trust shall be treated as a branch; PROVIDED, HOWEVER, that in the event
Certificates are owned by more than one Certificateholder, it is the intention
of the parties hereto that, solely for income and franchise tax purposes, the
Trust shall then be treated as a partnership and that, unless otherwise required
by appropriate tax authorities, only after such time the Trust will file or
cause to be filed annual or other necessary returns, reports and other forms
consistent with the characterization of the Trust as a partnership for such tax
purposes. Effective as of the date hereof, the Owner Trustee shall have all
rights, powers and duties set forth herein and to the extent not inconsistent
herewith, in

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the Statutory Trust Statute with respect to accomplishing the purposes of the
Trust. The Owner Trustee shall file the Certificate of Trust with the Secretary
of State.

        Section 2.7.   LIABILITY. (a) The Depositor shall pay organizational
expenses of the Trust as they may arise or shall, upon the request of the Owner
Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the
Owner Trustee.

        (b)     No Holder, other than to the extent set forth in clause (a),
shall have any personal liability for any liability or obligation of the Trust.

        Section 2.8.   TITLE TO OWNER TRUST ESTATE. (a) Legal title to all of
the Owner Trust Estate shall be vested at all times in the Trust as a separate
legal entity except where applicable law in any jurisdiction requires title to
any part of the Owner Trust Estate to be vested in a trustee or trustees, in
which case title shall be deemed to be vested in the Owner Trustee, a co-trustee
and/or a separate trustee, as the case may be.

        (b)     The holders of the Certificates shall not have legal title to
any part of the Series Trust Estate. The Holders of the Certificates shall be
entitled to receive distributions with respect to their undivided ownership
interest therein in accordance with the terms hereof and the Series Supplement.
No transfer, by operation of law or otherwise, of any right, title or interest
by any Certificateholder of its ownership interest in the Owner Trust Estate
shall operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any part
of the Series Trust Estate.

        Section 2.9.   SITUS OF OWNER TRUST ESTATE. The Trust will be located in
the State of Delaware and administered in the State of Illinois. All bank
accounts maintained by the Owner Trustee on behalf of the Trust shall be located
with the Certificate Paying Agent in the State of New York. Payments will be
received by the Certificate Paying Agent on behalf of the Trust in Illinois and
payments will be made by the Trust from New York. The Trust shall not have any
employees in any state other than Delaware; PROVIDED, HOWEVER, that nothing
herein shall restrict or prohibit the Owner Trustee, the Master Servicer or any
agent of the Trust from having employees within or without the State of
Delaware. The principal office of the Trust will be at the Corporate Trust
Office in Delaware.

        Section 2.10.  REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR. The
Depositor makes the following representations and warranties on which the Owner
Trustee relies in accepting the Owner Trust Estate in trust and executing the
Certificates and Notes and upon which any Support Provider relies in providing
any Series Support. Each of the following representations and warranties shall
be deemed to be made on each date on which a Series Trust Estate is pledged
under the Indenture.

        (a)     ORGANIZATION AND GOOD STANDING. The Depositor is duly organized
and validly existing as a Nevada corporation with power and authority to own its
properties and to conduct its business as such properties are currently owned
and such

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business is presently conducted and is proposed to be conducted pursuant to this
Agreement and the Basic Documents.

        (b)     DUE QUALIFICATION. It is duly qualified to do business as a
foreign corporation in good standing, and has obtained all necessary licenses
and approvals, in all jurisdictions in which the ownership or lease of its
property, the conduct of its business and the performance of its obligations
under this Agreement and the Basic Documents requires such qualification and in
which the failure to so qualify would have a material adverse effect on the
business, properties, assets or condition (financial or otherwise) of the
Depositor.

        (c)     POWER AND AUTHORITY. The Depositor has the corporate power and
authority to execute and deliver this Agreement and to carry out its terms; the
Depositor has full power and authority to sell and assign the property to be
sold and assigned to and deposited with the Trust; the Depositor has duly
authorized such sale, assignment and deposit to the Trust by all necessary
corporate action; and the execution, delivery and performance of this Agreement
has been duly authorized by the Depositor by all necessary corporate action.

        (d)     BINDING OBLIGATIONS. This Agreement, when duly executed and
delivered, shall constitute legal, valid and binding obligations of the
Depositor enforceable against the Depositor in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency, reorganization or
other similar laws affecting the enforcement of creditors' rights generally and
by equitable limitations on the availability of specific remedies, regardless of
whether such enforceability is considered in a proceeding in equity or at law.

        (e)     NO CONSENT REQUIRED. To the best knowledge of the Depositor, no
consent, license, approval or authorization or registration or declaration with,
any Person or with any governmental authority, bureau or agency is required in
connection with the execution, delivery or performance of this Agreement and the
Related Documents, except for such as have been obtained, effected or made or as
to which a failure to obtain, effect or make would not have a material adverse
effect on the business, properties, assets or condition (financial or other) of
the Depositor.

        (f)     NO VIOLATION. The consummation of the transactions contemplated
by this Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the articles of
incorporation or by-laws of the Depositor, or any material indenture, agreement
or other instrument to which the Depositor is a party or by which it is bound;
nor result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than pursuant to the Basic Documents or any applicable Related
Documents); nor violate any law or, to the best of the Depositor's knowledge,
any order, rule or regulation applicable to the Depositor of any court or of any
Federal or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the

                                        7
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Depositor or its properties, PROVIDED, HOWEVER, that the Receivables will not
satisfy the Eligibility Criteria set forth in Schedule I to the Series
Supplement until the Closing Date.

        (g)     NO PROCEEDINGS. To the best of the Depositor's knowledge, there
are no proceedings or investigations pending or, to its knowledge threatened
against it before any court, regulatory body, administrative agency or other
tribunal or governmental instrumentality having jurisdiction over it or its
properties (A) asserting the invalidity of this Agreement or any of the Basic
Documents, (B) seeking to prevent the issuance of the Certificates or the Notes
or the consummation of any of the transactions contemplated by this Agreement or
any of the Basic Documents, (C) seeking any determination or ruling that might
materially and adversely affect its performance of its obligations under, or the
validity or enforceability of, this Agreement or any Related Documents, or (D)
seeking to adversely affect the federal income tax or other federal, state or
local tax attributes of any of the Notes or Certificates.

        Section 2.11.  FEDERAL INCOME TAX ALLOCATIONS. (a) For so long as the
Trust has a single owner for federal income tax purposes, it will, pursuant to
Treasury Regulations promulgated under section 7701 of the Code, be disregarded
as an entity distinct from the Certificateholder for all federal income tax
purposes. Accordingly, for federal income tax purposes, the Certificateholder
will be treated as (i) owning all assets owned by the Trust, (ii) having
incurred all liabilities incurred by the Trust, and (iii) all transactions
between the Trust and the Certificateholder will be disregarded.

        (b)     Neither the Owner Trustee nor any Certificateholder will, under
any circumstances, and at any time, make an election on IRS Form 8832 or
otherwise, to classify the Trust as an association taxable as a corporation for
federal, state or any other applicable tax purpose.

        (c)     In the event that the Trust has two equity owners for federal
income tax purposes, the Trust will be treated as a partnership. At any such
time that the Trust has two equity owners, this Agreement will be amended, in
accordance with Section 11.1 herein, and appropriate provisions will be added so
as to provide for treatment of the Trust as a partnership.

        Section 2.12.  COVENANTS OF THE DEPOSITOR. The Depositor agrees and
covenants for the benefit of the Owner Trustee and the Indenture Trustee for the
benefit of the Secured Parties, during the term of this Agreement, and to the
fullest extent permitted by applicable law, that:

        (a)     (i) it shall not create, incur or suffer to exist any
indebtedness or (ii) engage in any business, except (x) as permitted by its
articles of incorporation and the Related Documents and (y) in connection with a
securitization transaction (including warehousing transactions) and the related
documents in which the related indebtedness is issued pursuant to an indenture
having a provision substantially similar to Section 11.18 of the Indenture;
PROVIDED, HOWEVER, that no other Series shall be issued under the Basic
Documents so long as the Notes are outstanding;

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        (b)     it shall not, for any reason, institute proceedings for the
Trust to be adjudicated bankrupt or insolvent, or consent to the institution of
bankruptcy or insolvency proceedings against the Trust, or file a petition
seeking or consenting to reorganization or relief under any applicable federal
or state law relating to the bankruptcy of the Trust, or consent to the
appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of the Trust or a substantial part of the property of the
Trust or cause or permit the Trust to make any assignment for the benefit of
creditors, or admit in writing the inability of the Trust to pay its debts
generally as they become due, or declare or effect a moratorium on the debt of
the Trust or take any action in furtherance of any such action;

        (c)     it shall obtain from each counterparty to each Basic Document to
which it or the Trust is a party and each other agreement entered into on or
after the date hereof to which it or the Trust is a party, an agreement by each
such counterparty that prior to the occurrence of the event specified in Section
9.1(e) such counterparty shall not institute against, or join any other Person
in instituting against, it or the Trust, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceedings
under the laws of the United States or any state of the United States; and

        (d)     it shall not, for any reason, withdraw or attempt to withdraw
from this Agreement, dissolve, institute proceedings for it to be adjudicated a
bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency
proceedings against it, or file a petition seeking or consenting to
reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of it or a substantial part of
its property, or make any assignment for the benefit of creditors, or admit in
writing its inability to pay its debts generally as they become due, or declare
or effect a moratorium on its debt or take any action in furtherance of any such
action.

        Section 2.13.  COVENANTS OF THE CERTIFICATEHOLDERS. Each
Certificateholder agrees:

        (a)     to be bound by the terms and conditions of the related
Certificates, of this Agreement and, with respect to the holders of
Certificates, of the Series Supplement, including any supplements or amendments
hereto and to perform the obligations of a Certificateholder as set forth
therein or herein, in all respects as if it were a signatory hereto. This
undertaking is made for the benefit of the Trust, the Owner Trustee and the
Secured Parties;

        (b)     to hereby appoint the Depositor as such Certificateholder's
agent and attorney-in-fact to sign any federal income tax information return
filed on behalf of the Trust, if any, and agree that, if requested by the Trust,
it will sign such federal income tax information return in its capacity as
holder of an interest in the Trust. Each Certificateholder also hereby agrees
that in its tax returns it will not take any position inconsistent with those
taken in any tax returns that may be filed by the Trust;

                                        9
<Page>

        (c)     if such Certificateholder is other than an individual or other
entity holding its Certificate through a broker who reports securities sales on
Form 1099-B, to notify the Owner Trustee of any transfer by it of a Certificate
in a taxable sale or exchange, within 30 days of the date of the transfer;

        (d)     until the completion of the events specified in Section 9.1(e),
not to, for any reason, institute proceedings for the Trust or the Depositor to
be adjudicated a bankrupt or insolvent, or consent to the institution of
bankruptcy or insolvency proceedings against the Trust, or file a petition
seeking or consenting to reorganization or relief under any applicable federal
or state law relating to bankruptcy, or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Trust or a substantial part of its property, or cause or permit
the Trust to make any assignment for the benefit of its creditors, or admit in
writing its inability to pay its debts generally as they become due, or declare
or effect a moratorium on its debt or take any action in furtherance of any such
action; and

        (e)     that there shall not be more than 98 other holders of
Certificates.

                                   ARTICLE III

                     CERTIFICATES AND TRANSFER OF INTERESTS

        Section 3.1.   INITIAL OWNERSHIP. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.5, the Trust shall issue an
uncertificated ownership interest in the Trust (the "Uncertificated
Certificate") to the Depositor. Unless and until the Depositor transfers all or
a portion of the Percentage Interest represented by such Uncertificated
Certificate, such Uncertificated Certificate shall represent one hundred percent
(100%) of the Percentage Interest. Upon issuance, the Certificates shall be
fully paid and nonassessable.

        Section 3.2.   THE CERTIFICATES. (a) The Certificates shall be in
uncertificated form with records of interest ownership maintained by the
Certificate Registrar in the Certificate Register. If, on or after the Closing
Date, the holder of any Uncertificated Certificate delivers to the Owner Trustee
a written request that the Uncertificated Certificate specified in such request
be issued in certificated form (a related "Certification Request"), the Owner
Trustee shall promptly issue such Certificate to the holder thereof in
certificated form. If a Certification Request has been delivered, the
Certificate will be issued in registered form, substantially in the form of
Exhibit A, and shall upon issue, be executed and delivered by the Depositor to
the Owner Trustee for authentication and redelivery as provided in Section 3.3.

        (b)     If the Certificates are in certificated form, they shall be
executed on behalf of the Trust by manual or facsimile signature of an
authorized officer of the Owner Trustee. Certificates bearing the manual or
facsimile signatures of individuals who were, at the time when such signatures
shall have been affixed, authorized to sign on

                                       10
<Page>

behalf of the Trust, shall be validly issued and entitled to the benefit of this
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of authentication and
delivery of such Certificates.

        (c)     A transferee of a Certificate (whether in certificated or
uncertificated form) shall become a Certificateholder, and shall be entitled to
the rights and subject to the obligations of a Certificateholder hereunder, upon
due registration of such Certificate in such transferee's name pursuant to
Section 3.4.

        (d)     No Certificates shall be issued under this Agreement unless such
Certificates have been authorized pursuant to the Series Supplement and all
conditions precedent to the issuance thereof, as specified in the Series
Supplement shall have been satisfied. All Certificates issued under this
Agreement shall be in all respects entitled to the benefits hereof and of the
Owner Trust Estate.

        Section 3.3.   AUTHENTICATION OF CERTIFICATES. If the Certificates are
in certificated form, the Owner Trustee shall cause the related Certificates to
be executed on behalf of the Trust, authenticated and delivered to or upon the
written order of the Depositor, signed by its chairman of the board, its
president or any vice president, its treasurer or any assistant treasurer
without further corporate action by the Depositor, in authorized denominations.
No Certificate shall entitle its holder to any benefit under this Agreement or,
with respect to a Series, the Series Supplement, or shall be valid for any
purpose, unless there shall appear on such Certificate a certificate of
authentication substantially in the form set forth in Exhibit A, executed by the
Owner Trustee or its authenticating agent, by manual signature; such
authentication shall constitute conclusive evidence that such Certificate shall
have been duly authenticated and delivered hereunder. All Certificates shall be
dated the date of their authentication.

        Section 3.4.   REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.
(a) The Certificate Registrar shall keep or cause to be kept, at the office or
agency maintained pursuant to Section 3.8, a Certificate Register in which,
subject to such reasonable regulations as it may prescribe, the Owner Trustee
shall provide for the registration of Certificates (whether in certificated or
uncertificated form) and of transfers and exchanges of Certificates (whether in
certificated or uncertificated form) as herein provided. The Owner Trustee shall
be the initial Certificate Registrar.

        (b)     The Certificate Registrar shall provide the Indenture Trustee
with a list of the names and addresses of the Certificateholders on the Closing
Date in the form which such information is provided to the Certificate Registrar
by the Depositor. Upon any transfers of Certificates, the Certificate Registrar
shall notify the Indenture Trustee of the name and address of the transferee in
writing, by facsimile, on the day of such transfer.

        (c)     If a Certificate is in certificated form, upon surrender for
registration of transfer of any Certificate to the Certificate Registrar at the
office or agency maintained pursuant to Section 3.8, the Owner Trustee shall
execute, authenticate

                                       11
<Page>

and deliver, in the name of the designated transferee or transferees, one or
more new Certificates of the same Series in the aggregate Percentage Interest to
be transferred, dated the date of authentication by the Owner Trustee or any
authenticating agent. If a Certificate is in uncertificated form, upon
representation of such Certificate in accordance with Section 3.2, the
Certificate Registrar shall reflect in the Certificate Register the transfer of
the relevant Percentage Interest. If a Certificate is in certificated form, at
the option of the Holder thereof, such Certificate may be exchanged for one or
more other Certificates of the same Series in authorized denominations of a like
Percentage Interest upon surrender of the Certificates of the same Series, to be
exchanged at the office or agency maintained pursuant to Section 3.8.
Certificates may be issued in any Percentage Interest not to exceed 100%.

        (d)     Every Certificate presented or, in the case of certificated
Certificates, surrendered for registration of transfer or exchange shall be
accompanied by a written instrument of transfer in form satisfactory to the
Owner Trustee and the Certificate Registrar duly executed by the
Certificateholder or his attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Certificate Registrar, which requirements include membership
or participation in the Securities Transfer Agent's Medallion Program ("STAMP")
or such other "signature guarantee program" as may be determined by the
Certificate Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Exchange Act. Each certificated Certificate surrendered for
registration of transfer or exchange shall be canceled and subsequently disposed
of by the Owner Trustee in accordance with its customary practice.

        (e)     No service charge shall be made for any registration of transfer
or exchange of Certificates, but the Owner Trustee or the Certificate Registrar
may require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of Certificates.

        Section 3.5.   MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (a)
any mutilated Certificate shall be surrendered to the Certificate Registrar, or
if the Certificate Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there shall be delivered
to the Certificate Registrar and the Owner Trustee, such security or indemnity
as may be required by them to hold each of them harmless, then in the absence of
notice that such Certificate shall have been acquired by a bona fide purchaser,
the Owner Trustee on behalf of the Trust shall execute and the Owner Trustee or
its authenticating agent shall authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Series principal balance. In connection with the issuance of
any new Certificate under this Section, the Owner Trustee or the Certificate
Registrar may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Certificate issued pursuant to this section shall constitute conclusive evidence
of an ownership interest in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time.

                                       12
<Page>

        Section 3.6.   PERSONS DEEMED CERTIFICATEHOLDERS. Every Person by virtue
of becoming a Certificateholder in accordance with this Agreement and the rules
and regulations of the Certificate Registrar shall be deemed to be bound by the
terms of this Agreement. Prior to due presentation of a Certificate for
registration of transfer, the Owner Trustee and the Certificate Registrar and
any agent of the Owner Trustee and the Certificate Registrar may treat the
Person in whose name any Certificate shall be registered in the Certificate
Register as the owner of such Certificate for the purpose of receiving
distributions pursuant hereto, the Indenture or the Series Supplement (in the
case of a Certificate) and for all other purposes whatsoever, and none of the
Owner Trustee, the Certificate Registrar nor any agent of the Owner Trustee or
the Certificate Registrar shall be bound by any notice to the contrary.

        Section 3.7.   ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND
ADDRESSES. The Owner Trustee or the Certificate Registrar shall furnish or cause
to be furnished to the Master Servicer, the Depositor, the Insurer or the
Indenture Trustee within 15 days after receipt by the Owner Trustee or the
Certificate Registrar of a request therefor from such Person in writing, a list,
of the names and addresses of the Certificateholders as of the most recent
Record Date. If three or more Holders of Certificates or one or more Holders of
Certificates evidencing not less than 25% of the Percentage Interest apply in
writing to the Owner Trustee or the Certificate Registrar, and such application
states that the applicants desire to communicate with other Certificateholders
with respect to their rights under this Agreement, under the Certificates of
such Series or under the Series Supplement and such application is accompanied
by a copy of the communication that such applicants propose to transmit, then
the Owner Trustee or the Certificate Registrar shall, within five Business Days
after the receipt of such application, afford such applicants access during
normal business hours to the current list of Certificateholders of such Series.
Each Holder, by receiving and holding a Certificate, shall be deemed to have
agreed not to hold any of the Depositor, the Master Servicer, the Owner Trustee
or any agent thereof accountable by reason of the disclosure of its name and
address, regardless of the source from which such information was derived.

        Section 3.8.   MAINTENANCE OF OFFICE OR AGENCY. The Owner Trustee or the
Certificate Registrar shall maintain in Wilmington, Delaware, an office or
offices or agency or agencies where Certificates may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Owner Trustee in respect of the Certificates and the Basic Documents may be
served. The Owner Trustee initially designates its Corporate Trust Office for
such purposes. The Owner Trustee shall give prompt written notice to the
Depositor, the Certificateholders and any Support Provider of any change in the
location of the Certificate Register or any such office or agency.

        Section 3.9.   ERISA RESTRICTIONS. The Certificates may not be acquired
by or for the account of (i) an employee benefit plan (as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")) that is subject to the provisions of Title I of ERISA, (ii) a plan
(as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975
of the Code or (iii) any entity whose underlying assets include assets of a plan
described in (i) or (ii) by reason of such plan's investment in the entity
(each, a "Benefit Plan"). The Certificate Registrar shall not register the

                                       13
<Page>

transfer of a Certificate unless the transferee has delivered to the Owner
Trustee a representation letter in form and substance satisfactory to the Owner
Trustee to the effect that the transferee is not, and is not acquiring the
Certificate for the account of, a Benefit Plan.

        Section 3.10.  SECURITIES MATTERS. Notwithstanding anything contained
herein to the contrary, the Owner Trustee shall not be responsible for
ascertaining whether any transfer complies with the registration provisions or
exemptions from the Securities Act, the Exchange Act, applicable state
securities law or the Investment Company Act; PROVIDED, HOWEVER, that if a
certificate is specifically required to be delivered to the Owner Trustee by a
purchaser or transferee of a Certificate, the Owner Trustee shall be under a
duty to examine the same to determine whether it conforms to the requirements of
this Agreement and shall promptly notify the party delivering the same if such
certificate does not so conform.

        Section 3.11.  DISTRIBUTIONS. Distributions shall be made from time to
time by the Owner Trustee or the Certificate Paying Agent in accordance with the
Percentage Interests of the Certificateholders.

        Section 3.12.  CERTIFICATE PAYING AGENT. Distributions to be made in
respect of the Certificates pursuant to this Agreement, or the Series Supplement
shall be made by the Certificate Paying Agent, by wire transfer or check mailed
to the Certificateholder of record in the Certificate Register without the
presentation or surrender of the Certificate or the making of any notation
thereon, except as provided in Section 9.1(c) with respect to the final
distribution on a Certificates.

                                   ARTICLE IV

                         VOTING RIGHTS AND OTHER ACTIONS

        Section 4.1.   PRIOR NOTICE TO HOLDERS WITH RESPECT TO CERTAIN MATTERS.
With respect to the following matters, the Owner Trustee shall not take action
unless at least 30 days before the taking of such action, the Owner Trustee
shall have notified the Certificateholders in writing of the proposed action and
Certificateholders holding, in the aggregate, greater than 50% of the Percentage
Interests (a "Certificate Majority") shall not have notified the Owner Trustee
in writing prior to the 30th day after such notice is given that such
Certificateholders have withheld consent or provided alternative direction:

        (a)     the election by the Trust to file an amendment to the
Certificate of Trust, which amendment shall have satisfied the Rating Agency
Condition (unless such amendment is required to be filed under the Statutory
Trust Statute or unless such amendment would not materially and adversely affect
the interests of the Holders) and shall have been consented to by the Insurer
(for so long as it is the Controlling Party);

        (b)     the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;

                                       14
<Page>

        (c)     the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interest of the Certificateholders;

        (d)     except pursuant to Section 13.1(b) of the Master Sale and
Servicing Agreement, the amendment, change or modification of the Master Sale
and Servicing Agreement, except to cure any ambiguity or defect or to amend or
supplement any provision in a manner that would not materially adversely affect
the interests of the Certificateholders; or

        (e)     the Depositor shall not, without the unanimous consent of the
holders of the Class SV Preferred Stock of the Depositor, institute proceedings
to be adjudicated insolvent, or consent to the institution of any bankruptcy or
insolvency case or proceedings against it, or file or consent to a petition
under any applicable federal or state law relating to bankruptcy, seeking the
Depositor's liquidation or reorganization or any other relief for the
Corporation as debtor, or consent to the appointment of a receiver, liquidator,
assignee, trustee, custodian or sequestrator (or other similar official) of the
Corporation or a substantial part of its property, or make any assignment for
the benefit of creditors, or admit in writing its inability to pay its debts
generally as they become due, or take any corporate action in furtherance of
such action.

        The Owner Trustee shall notify the Certificateholders in writing of any
appointment of a successor Note Registrar or Certificate Registrar within five
Business Days thereof.

        Section 4.2.   ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO CERTAIN
MATTERS. The Owner Trustee shall not have the power (a) to remove the Master
Servicer under the Master Sale and Servicing Agreement or (b) except as
expressly provided in the Indenture and the Series Supplement and at the written
direction of the Certificateholders, sell the Receivables after the termination
of the Indenture. The Owner Trustee shall take the actions referred to in the
preceding sentence only upon written instructions signed by the
Certificateholders, with the prior written consent of the Insurer (for so long
as it is the Controlling Party) and the furnishing of indemnification
satisfactory to the Owner Trustee by the Certificateholders.

        Section 4.3.   ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO BANKRUPTCY.
Until one year and one day following the date of payment in full of the Notes,
the Owner Trustee shall not have the power to, and shall not, commence any
proceeding or other actions contemplated by Section 2.13(d) hereof relating to
the Trust without the prior written consent of the Insurer (for so long as it is
the Controlling Party) and all the Certificateholders and the delivery to the
Owner Trustee by each such Certificateholder of a certificate certifying that
such Certificateholder reasonably believes that the Trust is insolvent.

        Section 4.4.   RESTRICTIONS ON CERTIFICATEHOLDERS' POWER. (a) The
Certificateholders shall not direct the Owner Trustee to take or refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the

                                       15
<Page>

Owner Trustee under this Agreement or any of the Basic Documents or would be
contrary to Section 2.3 or otherwise contrary to law nor shall the Owner Trustee
be obligated to follow any such direction, if given.

        (b)     No Certificateholder shall have any right by virtue or by
availing itself of any provisions of this Agreement to institute any suit,
action, or proceeding in equity or at law upon or under or with respect to this
Agreement or any Basic Document, unless there are no outstanding Notes and
unless the Certificate Majority previously shall have given to the Owner Trustee
a written notice of default and of the continuance thereof, as provided in this
Agreement, and also unless the Certificate Majority shall have made written
request upon the Owner Trustee to institute such action, suit or proceeding in
its own name as Owner Trustee under this Agreement and shall have offered to the
Owner Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby, and the Owner
Trustee, for 30 days after its receipt of such notice, request, and offer of
indemnity, shall have neglected or refused to institute any such action, suit,
or proceeding, and during such 30-day period no request or waiver inconsistent
with such written request has been given to the Owner Trustee pursuant to and in
compliance with this section or Section 6.3; it being understood and intended,
and being expressly covenanted by each Certificateholder with every other
Certificateholder and the Owner Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue or by
availing itself or themselves of any provisions of this Agreement to affect,
disturb, or prejudice the rights of the Holders of any other of the
Certificates, or to obtain or seek to obtain priority over or preference to any
other such Holder, or to enforce any right under this Agreement, except in the
manner provided in this Agreement and for the equal, ratable, and common benefit
of all Certificateholders. For the protection and enforcement of the provisions
of this Section 4.4, each and every Certificateholder and the Owner Trustee
shall be entitled to such relief as can be given either at law or in equity.

        Section 4.5.   MAJORITY CONTROL. No Certificateholder shall have any
right to vote or in any manner otherwise control the operation and management of
the Trust except as expressly provided in this Agreement. Except as expressly
provided herein, any action that may be taken by the Certificateholders under
this Agreement may be taken by the Certificate Majority. Except as expressly
provided herein, any written notice of the Certificateholders delivered pursuant
to this Agreement shall be effective if signed by the Certificate Majority at
the time of the delivery of such notice.

        Section 4.6.   CERTAIN LITIGATION MATTERS. (a) The Owner Trustee shall
provide prompt written notice to the Insurer of any action, proceeding or
investigation of which a Responsible Officer of the Owner Trustee has actual
knowledge that could adversely affect the Trust or the Owner Trust Estate or the
rights or obligations of the Insurer under any of the Basic Documents, the Note
Policy, the Swap Provider Policy or any other document delivered with respect
thereto.

        (b)     The Owner Trustee shall not, without the Insurer's prior written
consent (for so long as it is the Controlling Party) or unless directed by the
Insurer (if it is the Controlling Party), undertake or join any litigation or
agree to any settlement of any

                                       16
<Page>

action, proceeding or investigation that could adversely affect the Trust or the
rights or obligations of the Insurer under any of the Basic Documents, the Note
Policy or any other document delivered with respect thereto.

                                    ARTICLE V

                                 CERTAIN DUTIES

        Section 5.1.   ACCOUNTING AND RECORDS TO THE NOTEHOLDERS,
CERTIFICATEHOLDERS, THE INTERNAL REVENUE SERVICE AND OTHERS. Subject to Sections
12.1(b)(iii) and 12.1(c) of the Master Sale and Servicing Agreement, the Master
Servicer shall (a) maintain (or cause to be maintained) the books of the Trust
on a calendar year basis on the accrual method of accounting, including, without
limitation, the allocations of net income under Section 2.11, (b) deliver (or
cause to be delivered) to each Certificateholder, as may be required by the Code
and applicable Treasury Regulations, such information as may be required
(including Schedule K-1, if applicable) to enable each Certificateholder to
prepare its Federal and state income tax returns, (c) file or cause to be filed,
if necessary, such tax returns relating to the Trust (including a partnership
information return, Form 1065), and direct the Owner Trustee or the Master
Servicer, as the case may be, to make such elections as may from time to time be
required or appropriate under any applicable state or Federal statute or rule or
regulation thereunder so as to maintain the Trust's characterization as a
branch, or if applicable, as a partnership, for Federal income tax purposes and
(d) collect or cause to be collected any withholding tax as described in and in
accordance with the Master Sale and Serving Agreement or the Series Supplement
with respect to income or distributions to Certificateholders and the
appropriate forms relating thereto. The Owner Trustee or the Master Servicer, as
the case may be, shall make all elections pursuant to this Section 5.1 as
directed in writing by the Depositor. The Owner Trustee shall sign all tax
information returns, if any, filed pursuant to this Section 5.1 and any other
returns as may be required by law, and in doing so shall rely entirely upon, and
shall have no liability for information provided by, or calculations provided
by, the Depositor or the Master Servicer. The Owner Trustee shall elect under
Section 1278 of the Code to include in income currently any market discount that
accrues with respect to the Receivables. The Owner Trustee shall not make the
election provided under Section 754 of the Code.

        Section 5.2.   SIGNATURE ON RETURNS; TAX MATTERS PARTNER. (a)
Notwithstanding the provisions of Section 5.1 and in the event that the Trust is
characterized as a partnership, the Owner Trustee shall sign on behalf of the
Trust the tax returns of the Trust, unless applicable law requires a
Certificateholder to sign such documents, in which case such documents shall be
signed by the Depositor.

        (b)     In the event that the Trust is characterized as a partnership,
the Depositor shall be the "tax matters partner" of the Trust pursuant to the
Code.

                                       17
<Page>

                                   ARTICLE VI

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

        Section 6.1.   GENERAL AUTHORITY. The Owner Trustee is authorized and
directed to execute and deliver on behalf of the Trust the Basic Documents to
which the Trust is named as a party and each certificate or other document
attached as an exhibit to or contemplated by the Basic Documents to which the
Trust is named as a party and any amendment thereto, in each case, in such form
as the Depositor shall approve as evidenced conclusively by the Owner Trustee's
execution thereof, and on behalf of the Trust, to direct the Indenture Trustee
to authenticate and deliver the Notes. In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required
of the Trust pursuant to the Basic Documents. The Owner Trustee is further
authorized from time to time to take such action as the Certificate Majority
recommends with respect to the Basic Documents so long as such activities are
consistent with the terms of the Basic Documents.

        Section 6.2.   GENERAL DUTIES. It shall be the duty of the Owner Trustee
to discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Agreement and to administer the Trust in accordance with the
provisions of this Agreement and in the interest of the Holders, subject to the
Basic Documents. Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Basic Documents to the extent the Master Servicer has agreed in the Master
Sale and Servicing Agreement to perform any act or to discharge any duty of the
Trust or the Owner Trustee hereunder or under any Basic Document and the Owner
Trustee shall not be liable for the default or failure of the Master Servicer to
carry out its obligations under the Master Sale and Servicing Agreement.

        Section 6.3.   ACTION UPON INSTRUCTION. (a) Subject to Article IV, the
Certificate Majority shall have the exclusive right to direct the actions of the
Owner Trustee in the management of the Trust, so long as such instructions are
not inconsistent with the express terms set forth herein or in any Basic
Document. The Certificate Majority shall not instruct the Owner Trustee in a
manner inconsistent with this Agreement or the Basic Documents.

        (b)     The Owner Trustee shall not be required to take any action
hereunder or under any Basic Document if the Owner Trustee shall have reasonably
determined, or shall have been advised by counsel, that such action is likely to
result in liability on the part of the Owner Trustee or is contrary to the terms
hereof or of any Basic Document or is otherwise contrary to law.

        (c)     Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or any Basic Document, the Owner Trustee shall promptly give notice
(in such form as shall be appropriate under the circumstances) to the
Certificate Majority and the Insurer requesting instruction as to the course of
action to be adopted, and to the extent the

                                       18
<Page>

Owner Trustee acts in good faith in accordance with any written instruction of
the Certificate Majority or the Insurer, the Owner Trustee shall not be liable
on account of such action to any Person. If the Owner Trustee shall not have
received appropriate instruction within ten days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not inconsistent with this Agreement or the
Basic Documents or as it shall deem to be in the best interests of the
Certificateholders, and shall have no liability to any Person for such action or
inaction.

        (d)     In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any Basic Document or any such
provision is ambiguous as to its application, or is, or appears to be, in
conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required to take
with respect to a particular set of facts, the Owner Trustee may give notice (in
such form as shall be appropriate under the circumstances) to the Certificate
Majority requesting instruction and, to the extent that the Owner Trustee acts
or refrains from acting in good faith in accordance with any such instruction
received, the Owner Trustee shall not be liable, on account of such action or
inaction, to any Person. If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action, not inconsistent with this Agreement or the Basic
Documents, as it shall deem to be in the best interests of the
Certificateholders, and shall have no liability to any Person for such action or
inaction.

        Section 6.4.   NO DUTIES EXCEPT AS SPECIFIED IN THIS AGREEMENT OR IN
INSTRUCTIONS. The Owner Trustee shall not have any duty or obligation to manage,
make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided by the terms
of this Agreement or in any document or written instruction received by the
Owner Trustee pursuant to Section 6.3; and no implied duties or obligations
shall be read into this Agreement or any Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Commission filing for the Trust or to
record this Agreement or any Basic Document. The Owner Trustee nevertheless
agrees that it will, at its own cost and expense, promptly take all action as
may be necessary to discharge any Liens on any part of the Owner Trust Estate
that result from actions by, or claims against, the Owner Trustee (solely in its
individual capacity) and that are not related to the ownership or the
administration of the Owner Trust Estate.

        Section 6.5.   NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR
INSTRUCTIONS. The Owner Trustee shall not manage, control, use, sell, dispose of
or

                                       19
<Page>

otherwise deal with any part of the Owner Trust Estate except (i) in accordance
with the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, (ii) in accordance with the Basic Documents or any
Related Document and (iii) in accordance with any document or instruction
delivered to the Owner Trustee pursuant to Section 6.3.

        Section 6.6.   RESTRICTIONS. The Owner Trustee shall not take any action
(a) that is inconsistent with the purposes of the Trust set forth in Section 2.3
or (b) that, to the actual knowledge of the Owner Trustee, would result in the
Trust's becoming taxable as a corporation or a publicly traded partnership for
Federal income tax purposes. The Certificateholders shall not direct the Owner
Trustee to take action that would violate the provisions of this Section.

                                   ARTICLE VII

                          CONCERNING THE OWNER TRUSTEE

        Section 7.1.   ACCEPTANCE OF TRUST AND DUTIES. The Owner Trustee accepts
the trust hereby created and agrees to perform its duties hereunder with respect
to such trust but only upon the terms of this Agreement. The Owner Trustee and
the Certificate Paying Agent also agree to disburse all monies actually received
by it constituting part of the Owner Trust Estate upon the terms of this
Agreement or the Basic Documents. The Owner Trustee shall not be answerable or
accountable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct, bad faith or negligence, (ii) in the
case of the inaccuracy of any representation or warranty contained in Section
7.3 expressly made by the Owner Trustee in its individual capacity, (iii) for
liabilities arising from the failure of the Owner Trustee to perform obligations
expressly undertaken by it in the last sentence of Section 6.4 hereof, (iv) for
any investments issued by the Owner Trustee or any branch or affiliate thereof
in its commercial capacity or (v) for taxes, fees or other charges on, based on
or measured by, any fees, commissions or compensation received by the Owner
Trustee. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):

        (a)     the Owner Trustee shall not be liable for any error of judgment
made by a Responsible Officer of the Owner Trustee;

        (b)     the Owner Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in accordance with the instructions of the
Certificate Majority, the Depositor, the Master Servicer or any
Certificateholder;

        (c)     no provision of this Agreement or any Basic Document shall
require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights or powers hereunder
or under any Basic Document if the Owner Trustee shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured or provided to it;

                                       20
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        (d)     under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Basic Documents or any
Related Document, including the principal of and interest on the Notes;

        (e)     the Owner Trustee shall not be responsible for or in respect of
the validity or sufficiency of this Agreement or for the due execution hereof by
the Depositor or for the form, character, genuineness, sufficiency, value or
validity of any of the Owner Trust Estate or for or in respect of the validity
or sufficiency of the Basic Documents or any Related Document, other than the
certificate of authentication on the Certificates, and the Owner Trustee shall
in no event assume or incur any liability, duty or obligation to the Depositor,
any Support Provider, the Indenture Trustee, the Certificate Paying Agent, any
Noteholder or to any Certificateholder, other than as expressly provided for
herein or in the Basic Documents;

        (f)     the Owner Trustee shall not be liable for the default or
misconduct of the Depositor, any Support Provider, the Indenture Trustee or the
Master Servicer under any of the Basic Documents or otherwise and the Owner
Trustee shall have no obligation or liability to perform the obligations under
this Agreement or the Basic Documents that are required to be performed by the
Depositor or the Certificate Paying Agent under this Agreement, by the Indenture
Trustee under the Indenture, the Series Supplement or any Related Document or
the Master Servicer under the Master Sale and Servicing Agreement or the Series
Supplement;

        (g)     the Owner Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Agreement, or to institute, conduct
or defend any litigation under this Agreement or otherwise or in relation to
this Agreement or any Basic Document at the request, order or direction of the
Certificate Majority or any of the Certificateholders, unless such Certificate
Majority or Certificateholders have offered to the Owner Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee therein or thereby. The right of the Owner
Trustee to perform any discretionary act enumerated in this Agreement or in any
Basic Document shall not be construed as a duty, and the Owner Trustee shall not
be answerable for other than its negligence, bad faith or willful misconduct in
the performance of any such act; and

        (h)     with respect to the Insurer or Controlling Party, the Owner
Trustee undertakes to perform or observe only such of the covenants and
obligations of the Owner Trustee as are expressly set forth in this Agreement,
and no implied covenants or obligations with respect to the Insurer or
Controlling Party shall be read into this Agreement or any of the other Basic
Documents against the Owner Trustee. The Owner Trustee shall not be deemed to
owe any fiduciary duty to the Insurer or Controlling Party, and shall not be
liable to any such person for the failure of the Trust to perform its
obligations to any such person other than as a result of the gross negligence or
willful misconduct of the Owner Trustee in the performance of its express
obligations under this Agreement.

                                       21
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        Section 7.2.   FURNISHING OF DOCUMENTS. The Owner Trustee shall furnish
to the Certificateholders promptly upon receipt of a written request therefor,
duplicates or copies of all reports, notices, requests, demands, certificates,
financial statements and any other instruments furnished to the Owner Trustee
under the Basic Documents.

        Section 7.3.   REPRESENTATIONS AND WARRANTIES. The Owner Trustee hereby
represents and warrants, in its individual capacity, to the Depositor, the
Holders and any Support Provider (which shall have relied on such
representations and warranties in issuing any policy relating to Series
Support), that:

        (a)     It is a Delaware banking corporation, duly organized and validly
existing under the laws of the United States. It has all requisite corporate
power and authority to execute, deliver and perform its obligations under this
Agreement.

        (b)     It has taken all corporate action necessary to authorize the
execution and delivery by it of this Agreement, and this Agreement will be
executed and delivered by one of its officers who is duly authorized to execute
and deliver this Agreement on its behalf.

        (c)     Neither the execution nor the delivery by it of this Agreement,
nor the consummation by it of the transactions contemplated hereby nor
compliance by it with any of the terms or provisions hereof will contravene any
Federal or Delaware state law, governmental rule or regulation governing the
banking or trust powers of it or any judgment or order binding on it, or
constitute any default under its charter documents or by-laws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound.

        (d)     This Agreement constitutes the legal, valid and binding
obligation of the Owner Trustee, enforceable against it in accordance with its
terms except as the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting the
enforcement of creditors' rights generally and by general principles of equity.

        (e)     It is authorized to exercise trust powers in the State of
Delaware as and to the extent contemplated herein and it has a principal place
of business in the State of Delaware.

        Section 7.4.   RELIANCE; ADVICE OF COUNSEL. (a) The Owner Trustee shall
incur no liability to anyone in acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, bond or other
document or paper believed by it to be genuine and believed by it to be signed
by the proper party or parties. The Owner Trustee may accept a certified copy of
a resolution of the board of directors or other governing body of any corporate
party as conclusive evidence that such resolution has been duly adopted by such
body and that the same is in full force and effect. As to any fact or matter the
method of the determination of which is not specifically prescribed herein, the
Owner Trustee may for all purposes hereof rely on a certificate, signed by the
president or any vice president or by the treasurer, secretary or

                                       22
<Page>

other authorized officers of the relevant party, as to such fact or matter, and
such certificate shall constitute full protection to the Owner Trustee for any
action taken or omitted to be taken by it in good faith in reliance thereon.

        (b)     In the exercise or administration of the trusts hereunder and in
the performance of its duties and obligations under this Agreement or the Basic
Documents, the Owner Trustee (i) may act directly or through its agents or
attorneys pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants and
other skilled persons to be selected with reasonable care and employed by it.
The Owner Trustee shall not be liable for anything done, suffered or omitted in
good faith by it in accordance with the written opinion or advice of any such
counsel, accountants or other such persons and according to such opinion not
contrary to this Agreement or any Basic Document.

        Section 7.5.   NOT ACTING IN INDIVIDUAL CAPACITY. Except as provided in
this Article VII, in accepting the trusts hereby created the Owner Trustee acts
solely as Owner Trustee hereunder and not in its individual capacity and all
Persons having any claim against the Owner Trustee by reason of the transactions
contemplated by this Agreement or any Basic Document shall look only to the
Owner Trust Estate for payment or satisfaction thereof.

        Section 7.6.   OWNER TRUSTEE NOT LIABLE FOR CERTIFICATES OR RECEIVABLES.
The recitals contained herein and in certificated Certificates (other than the
signature and countersignature of the Owner Trustee on such Certificates) shall
be taken as the statements of the Depositor and the Owner Trustee assumes no
responsibility for the correctness thereof. The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, of any
Basic Document or of the Certificates (other than the signature and
countersignature of the Owner Trustee on certificated Certificates) or the
Notes, or of any Receivable or related documents. The Owner Trustee shall at no
time have any responsibility or liability for or with respect to the legality,
validity and enforceability of any Receivable, or the perfection and priority of
any security interest created by any Receivable in any Financed Vehicle or the
maintenance of any such perfection and priority, or for or with respect to the
sufficiency of the Owner Trust Estate or its ability to generate the payments to
be distributed to Certificateholders under this Agreement or the Noteholders
under the Indenture, including, without limitation: the existence, condition and
ownership of any Financed Vehicle; the existence and enforceability of any
insurance thereon; the existence and contents of any Receivable on any computer
or other record thereof; the validity of the assignment of any Receivable to the
Trust or of any intervening assignment; the completeness of any Receivable; the
performance or enforcement of any Receivable; the compliance by the Depositor,
the Master Servicer or any other Person with any warranty or representation made
under any Basic Document or in any related document or the accuracy of any such
warranty or representation or any action of the Indenture Trustee or the Master
Servicer or any subservicer taken in the name of the Owner Trustee.

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        Section 7.7.   OWNER TRUSTEE MAY OWN CERTIFICATES AND NOTES. The Owner
Trustee in its individual or any other capacity may become the owner or pledgee
of Certificates or Notes and may deal with the Depositor, the Indenture Trustee
and the Master Servicer in banking transactions with the same rights as it would
have if it were not Owner Trustee.

        Section 7.8.   PAYMENTS FROM OWNER TRUST ESTATE All payments to be made
by the Owner Trustee or any Certificate Paying Agent under this Agreement or any
of the Basic Documents shall be made only from the income and proceeds of the
Owner Trust Estate and only to the extent that the Owner Trustee shall have
received income or proceeds from the Owner Trust Estate to make such payments in
accordance with the terms hereof. The Owner Trustee, or any successor thereto,
in its individual capacity, shall not be liable for any amounts payable under
this Agreement or any of the Basic Documents.

        Section 7.9.   DOING BUSINESS IN OTHER JURISDICTIONS. Notwithstanding
anything contained herein to the contrary, the Owner Trustee (in its individual
and trustee capacities) shall not be required to take any action in any
jurisdiction other than in the State of Delaware if the taking of such action
will, even after the appointment of a co-trustee or separate trustee in
accordance with Section 10.5 hereof, (i) require the consent or approval or
authorization or order of or the giving of notice to, or the registration with
or the taking of any other action in respect of, any state or other governmental
authority or agency of any jurisdiction other than the State of Delaware; (ii)
result in any fee, tax or other governmental charge under the laws of the State
of Delaware becoming payable by the Owner Trustee (in its individual capacity);
or (iii) subject the Owner Trustee (in its individual capacity) to personal
jurisdiction in any jurisdiction other than the State of Delaware for causes of
action arising from acts unrelated to the consummation of the transactions by
the Owner Trustee (in its individual and trustee capacities) contemplated
hereby.

                                  ARTICLE VIII

                          COMPENSATION OF OWNER TRUSTEE

        Section 8.1.   OWNER TRUSTEE'S FEES AND EXPENSES. The Owner Trustee
shall receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof between Household and the Owner
Trustee, and the Owner Trustee shall be entitled to be reimbursed by the
Depositor for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its respective rights and duties hereunder or under
the Basic Documents.

        Section 8.2.   INDEMNIFICATION. To the fullest extent permitted by
applicable law, the Depositor shall be liable as primary obligor for, and shall
indemnify the Owner Trustee (in its individual and trustee capacities) and its
officers, directors, successors, assigns, agents and servants (collectively, the
"Indemnified Parties") from

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and against, any and all liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable costs, expenses and
disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever (collectively, "Expenses") which may at any time be imposed
on, incurred by, or asserted against the Owner Trustee (in its trust or
individual capacities) or any Indemnified Party in any way relating to or
arising out of this Agreement or the Basic Documents, the Owner Trust Estate,
the administration of the Owner Trust Estate or the action or inaction of the
Owner Trustee hereunder, except only that the Depositor shall not be liable for
or required to indemnify the Owner Trustee from and against Expenses arising or
resulting from any of the matters described in the third sentence of Section
7.1. The indemnities contained in this Section 8.2 and the rights under Section
8.1 shall survive the resignation or termination of the Owner Trustee or the
termination of this Agreement. In any event of any claim, action or proceeding
for which indemnity will be sought pursuant to this Section, the Owner Trustee's
choice of legal counsel shall be subject to the approval of the Depositor which
approval shall not be unreasonably withheld.

        Section 8.3.   PAYMENTS TO THE OWNER TRUSTEE. Any amounts paid to the
Owner Trustee in its trustee capacity pursuant to this Article VIII shall be
deemed not to be a part of the Owner Trust Estate immediately after such payment
and any amounts so paid to the Owner Trustee, in its individual capacity shall
not be so paid out of the Owner Trust Estate but shall be the property of the
Owner Trustee in its individual capacity.

        Section 8.4.   NON-RECOURSE OBLIGATIONS. Notwithstanding anything in
this Agreement or any Basic Document, the Owner Trustee agrees in its individual
capacity and in its capacity as Owner Trustee for the Trust that all obligations
of the Trust to the Owner Trustee individually or as Owner Trustee for the Trust
shall be recourse to the Owner Trust Estate only and specifically shall not be
recourse to the assets of any Certificateholder.

                                   ARTICLE IX

                            TERMINATION OF AGREEMENT

        Section 9.1.   TERMINATION OF AGREEMENT. (a) This Agreement shall
terminate and the Trust shall wind up, dissolve and be of no further force or
effect upon the latest to occur of (i) the maturity or other liquidation of the
last Receivable (including the optional purchase by the Depositor or the Master
Servicer of the corpus of the Trust as described in Section 11.1 of the Master
Sale and Servicing Agreement) and the subsequent distribution of amounts in
respect of such Receivables as provided in the Basic Documents and, with respect
to amounts released from the Lien of the Indenture, distribution thereof to the
Certificateholders, or (ii) the payment to Noteholders and Certificateholders of
all amounts required to be paid to them pursuant to the Indenture and this
Agreement, including, with respect to amounts released from the Lien of the
Indenture, distribution thereof to the Certificateholders and the payment to any
Support Provider of all amounts payable or reimbursable to it pursuant to the
Series Supplement; PROVIDED, HOWEVER, that the rights to indemnification under
Section 8.2 and the rights under Section 8.1 shall survive the termination of
the Trust. The Master Servicer shall

                                       25
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promptly notify the Owner Trustee of any prospective termination pursuant to
this Section 9.1. The bankruptcy, liquidation, dissolution, death or incapacity
of any Certificateholder shall not (x) operate to terminate this Agreement or
the Trust, nor (y) entitle such Certificateholder's legal representatives or
heirs to claim an accounting or to take any action or proceeding in any court
for a partition or winding up of all or any part of the Trust or Owner Trust
Estate nor (z) otherwise affect the rights, obligations and liabilities of the
parties hereto.

        (b)     Except as provided in clause (a), neither the Depositor, the
Insurer nor any other Certificateholder shall be entitled to revoke or terminate
the Trust.

        (c)     If any Certificates are in certificated form, notice of any
termination of a Series Trust Estate, specifying the Distribution Date upon
which the Certificateholders of such Series shall surrender their Certificates
to the Certificate Paying Agent for payment of the final distribution and
cancellation, shall be given by the Owner Trustee by letter to
Certificateholders of such Series mailed within five Business Days of receipt of
notice of such termination given pursuant to Section 9.1(a) hereof, stating (i)
the Distribution Date upon or with respect to which final payment of the
Certificates of such Series shall be made upon presentation and surrender of the
Certificates of such Series at the office of the Certificate Paying Agent
therein designated, (ii) the amount of any such final payment, (iii) that the
Record Date otherwise applicable to such Distribution Date is not applicable,
payments being made only upon presentation and surrender of the Certificates of
such Series at the office of the Certificate Paying Agent therein specified and
(iv) interest will cease to accrue on the Certificates of such Series. The Owner
Trustee shall give such notice to the Certificate Registrar (if other than the
Owner Trustee) and the Certificate Paying Agent at the time such notice is given
to Certificateholders. Upon presentation and surrender of the Certificates of
such Series, the Certificate Paying Agent shall cause to be distributed to
Certificateholders of such Series amounts distributable pursuant to the Series
Supplement.

        (d)     If any Certificates are in certificated form, in the event that
all of the Certificateholders holding certificated Certificates of such Series
shall not surrender their Certificates for cancellation within six months after
the date specified in the above-mentioned written notice, the Certificate Paying
Agent shall give a second written notice to the remaining Certificateholders
holding certificated Certificates of such Series to surrender their Certificates
for cancellation and receive the final distribution with respect thereto. If
within one year after the second notice all the certificated Certificates of
such Series shall not have been surrendered for cancellation, the Certificate
Paying Agent may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining Certificateholders holding
certificated Certificates concerning surrender of their Certificates, and the
cost thereof shall be paid out of the funds and other Series Trust Estate assets
that shall remain subject to this Agreement. Any funds remaining in the Trust
after exhaustion of such remedies shall be distributed, subject to applicable
escheat laws, by the Certificate Paying Agent to the Depositor and Holders shall
look solely to the Depositor for payment.

                                       26
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        (e)     Any funds remaining in the Trust after funds for final
distribution have been distributed or set aside for distribution shall be
distributed by the Certificate Paying Agent to the Depositor.

        (f)     Upon the winding up of the Trust and its dissolution, the Owner
Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810 of the Statutory Trust Statute.

                                    ARTICLE X

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

        Section 10.1.  ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE. The Owner
Trustee shall at all times be a corporation or national banking association (i)
satisfying the provisions of Section 3807(a) of the Statutory Trust Statute,
(ii) authorized to exercise corporate trust powers; (iii) having a combined
capital and surplus of at least $50,000,000 and subject to supervision or
examination by Federal or State authorities; (iv) having (or having a parent
which has) a rating of at least Baa3 by Moody's or A-1 by Standard & Poors; and
(v) acceptable to the Certificateholders. If such corporation shall publish
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purpose of
this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Owner Trustee shall
cease to be eligible in accordance with the provisions of this Section, the
Owner Trustee shall resign immediately in the manner and with the effect
specified in Section 10.2.

        Section 10.2.  RESIGNATION OR REMOVAL OF OWNER TRUSTEE. The Owner
Trustee may at any time resign and be discharged from the trusts hereby created
by giving written notice thereof to the Depositor (or in the event that the
Depositor is not the sole Certificateholder, the Certificate Majority), any
Support Provider and the Master Servicer. Upon receiving such notice of
resignation, the Depositor shall promptly appoint a successor Owner Trustee,
meeting the qualifications set forth in Section 10.1 herein, by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee; PROVIDED
THAT the Depositor and the Insurer shall have received written confirmation from
each of the Rating Agencies that the proposed appointment will not result in an
increased capital charge to any Support Provider by either of the Rating
Agencies. If no successor Owner Trustee shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Owner Trustee or any Support Provider may petition
any court of competent jurisdiction for the appointment of a successor Owner
Trustee.

        If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.1 and shall fail to resign after
written request therefor by the Depositor or the Insurer (for so long as it is
the Controlling Party), or if at any time

                                       27
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the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt
or insolvent, or a receiver of the Owner Trustee or of its respective property
shall be appointed, or any public officer shall take charge or control of the
Owner Trustee or of its respective property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Depositor or the Insurer
(for so long as it is the Controlling Party) may remove the Owner Trustee. If
the Depositor or the Insurer shall remove the Owner Trustee under the authority
of the immediately preceding sentence, the Depositor shall promptly appoint a
successor Owner Trustee meeting the qualifications set forth in Section 10.1
herein and acceptable to the Insurer (for so long as it is the Controlling
Party), by written instrument, in triplicate, one copy of which instrument shall
be delivered to the outgoing Owner Trustee so removed, one copy to any Support
Provider and one copy to the successor Owner Trustee.

        Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section 10.2
shall not become effective until acceptance of appointment by the successor
Owner Trustee pursuant to Section 10.3 and payment of all fees and expenses owed
to the outgoing Owner Trustee. The Depositor shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

        Section 10.3.  SUCCESSOR OWNER TRUSTEE. Any successor Owner Trustee
appointed pursuant to Section 10.2 shall execute, acknowledge and deliver to the
Depositor, the Master Servicer, any Support Provider and to its predecessor
Owner Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of its predecessor shall become effective
and the successor Owner Trustee, without any further act, deed or conveyance,
shall become fully vested with all the rights, powers, duties and obligations of
its predecessor under this Agreement, with like effect as if originally named as
Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees and
expenses deliver to the successor Owner Trustee all documents and statements and
monies held by it under this Agreement; and the Depositor and the predecessor
Owner Trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for fully and certainly vesting and
confirming in the successor Owner Trustee all such rights, powers, duties and
obligations.

        No successor Owner Trustee shall accept appointment as provided in this
Section 10.3 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 10.1.

        Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Master Servicer shall mail notice of the successor of such
Owner Trustee to all Certificateholders, the Insurer, the Indenture Trustee, the
Noteholders and the Rating Agencies. If the Master Servicer shall fail to mail
such notice within 10 days after acceptance of appointment by the successor
Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed
at the expense of the Master Servicer.

                                       28
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        Any successor Owner Trustee appointed pursuant to this Section 10.3
shall promptly file an amendment to the Certificate of Trust with the Secretary
of State identifying the name and principal place of business of such successor
Owner Trustee in the State of Delaware.

        Section 10.4.  MERGER OR CONSOLIDATION OF OWNER TRUSTEE. Any corporation
into which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided
such corporation shall be eligible pursuant to Section 10.1, without the
execution or filing of any instrument or any further act on the part of any of
the parties hereto, anything herein to the contrary notwithstanding; PROVIDED,
FURTHER, that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies, the Depositor and the Master Servicer.

        Section 10.5.  APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Owner Trust Estate or any Financed Vehicle may at the time be located,
the Master Servicer and the Owner Trustee acting jointly shall have the power
and shall execute and deliver all instruments to appoint one or more Persons
approved by the Owner Trustee and any Support Provider to act as co-trustee,
jointly with the Owner Trustee, or separate trustee or separate trustees, of all
or any part of the Owner Trust Estate, and to vest in such Person, in such
capacity, such title to the Trust, or any part thereof, and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Master Servicer and the Owner Trustee may consider necessary or
desirable. If the Master Servicer shall not have joined in such appointment
within 15 days after the receipt by it of a request so to do, the Owner Trustee
and the Insurer (for so long as it is the Controlling Party) and, if the Insurer
is not the Controlling Party, subject to the approval of the Certificate
Majority (which approval shall not be unreasonably withheld), shall have the
power to make such appointment. No co-trustee or separate trustee under this
Agreement shall be required to meet the terms of eligibility as a successor
trustee pursuant to Section 10.1 and no notice of the appointment of any
co-trustee or separate trustee shall be required pursuant to Section 10.3.

        Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

        (i)     all rights, powers, duties and obligations conferred or imposed
     upon the Owner Trustee shall be conferred upon and exercised or performed
     by the Owner Trustee and such separate trustee or co-trustee jointly (it
     being understood that such separate trustee or co-trustee is not authorized
     to act separately without the Owner Trustee joining in such act), except to
     the extent that under any law of any jurisdiction in which any particular
     act or acts are to be performed, the Owner Trustee shall be incompetent or
     unqualified to perform such act or acts, in which event such rights,
     powers, duties and obligations

                                       29
<Page>

     (including the holding of title to the Trust or any portion thereof in any
     such jurisdiction) shall be exercised and performed singly by such separate
     trustee or co-trustee, but solely at the direction of the Owner Trustee;

        (ii)    no trustee under this Agreement shall be personally liable by
     reason of any act or omission of any other trustee under this Agreement;
     and

        (iii)   the Master Servicer, the Insurer (for so long as it is the
     Controlling Party) and the Owner Trustee acting jointly may at any time
     accept the resignation of or remove any separate trustee or co-trustee.

        Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Owner Trustee or
separately, as may be provided therein, subject to all the provisions of this
Agreement, specifically including every provision of this Agreement relating to
the conduct of, affecting the liability of, or affording protection to, the
Owner Trustee. Each such instrument shall be filed with the Owner Trustee and a
copy thereof given to the Master Servicer and the Insurer.

        Any separate trustee or co-trustee may at any time appoint the Owner
Trustee, its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Owner Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

                                   ARTICLE XI

                                  MISCELLANEOUS

        Section 11.1.  SUPPLEMENTS AND AMENDMENTS. (a) This Agreement may be
amended from time to time by the parties hereto with the consent of the Insurer
(for so long as it is the Controlling Party), by a written instrument signed by
each of them, without the consent of any of the Securityholders; PROVIDED that
an Opinion of Counsel for the Depositor (which Opinion of Counsel may, as to
factual matters, rely upon Officer's Certificates of the Depositor) is addressed
and delivered to the Owner Trustee, dated the date of any such amendment, to the
effect that the conditions precedent to any such amendment have been satisfied
and the Depositor shall have delivered to the Owner Trustee an Officer's
Certificate dated the date of any such Amendment, stating that the Depositor
reasonably believes that such Amendment will not have a material adverse effect
on the Securityholders.

                                       30
<Page>

        (b)     This Agreement may also be amended from time to time with the
consent of the Insurer (for so long as it is the Controlling Party), the consent
of the Noteholders evidencing not less than a majority of the Outstanding Amount
of the Notes, and the consent of the Certificateholders representing at least a
50% Percentage Interest, for which the Seller has not delivered an Officer's
Certificate stating that there is no material adverse effect, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Securityholders; PROVIDED, HOWEVER, that no such amendment shall (i) reduce in
any manner the amount of, or delay the timing of, payments received that are
required to be distributed on any Security without the consent of the related
Securityholder, or (ii) reduce the aforesaid percentage of Securities the Holder
of which are required to consent to any such amendment, without the consent of
the Holders of all such Certificates then outstanding or cause any material
adverse tax consequences to any Certificateholders or Noteholders.

        Prior to the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent to each Certificateholder, the Indenture Trustee, the Insurer and each
of the Rating Agencies.

        It shall not be necessary for the consent of Certificateholders, the
Noteholders or the Indenture Trustee pursuant to this Section to approve the
particular form of any proposed amendment or consent, but it shall be sufficient
if such consent shall approve the substance thereof. The manner of obtaining
such consents (and any other consents of Certificateholders provided for in this
Agreement or in any other Basic Document) and of evidencing the authorization of
the execution thereof by Certificateholders shall be subject to such reasonable
requirements as the Owner Trustee may prescribe. Promptly after the execution of
any amendment to the Certificate of Trust, including, without limitation,
amendments pursuant this Section and pursuant to Section 10A.4, the Owner
Trustee shall cause the filing of such amendment with the Secretary of State.

        (c) The Owner Trustee shall not be required to enter into any amendment
to this Agreement which adversely affects their respective rights, duties or
immunities under this Agreement.

        Section 11.2.  NO LEGAL TITLE TO OWNER TRUST ESTATE IN
CERTIFICATEHOLDERS. The Certificateholders shall not have legal title to any
part of the Series Trust Estate. The Certificateholders shall be entitled to
receive distributions with respect to their undivided ownership interest therein
only in accordance with Articles V and IX. No transfer, by operation of law or
otherwise, of any right, title or interest of the Certificateholders to and in
their ownership interest in the Series Trust Estate shall operate to terminate
this Agreement or the trusts hereunder or entitle any transferee to an
accounting or to the transfer to it of legal title to any part of the Series
Trust Estate.

        Section 11.3.  LIMITATIONS ON RIGHTS OF OTHERS. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Depositor, the

                                       31
<Page>

Certificateholders, the Master Servicer and any Support Provider, the Indenture
Trustee and the Noteholders, and nothing in this Agreement, whether express or
implied, shall be construed to give to any other Person any legal or equitable
right, remedy or claim in the Owner Trust Estate or under or in respect of this
Agreement or any covenants, conditions or provisions contained herein.

        Section 11.4.  NOTICES. (a) Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and shall be
deemed given upon receipt personally delivered, delivered by overnight courier
or mailed first class mail or certified mail, in each case return receipt
requested, and shall be deemed to have been duly given upon receipt, if to the
Owner Trustee, addressed to its respective Corporate Trust Office; if to the
Depositor, addressed to Household Auto Receivables Corporation, 1111 Town Center
Drive, Las Vegas, Nevada 89134, with a copy to Household Finance Corporation,
2700 Sanders Road, Prospect Heights, Illinois 60070, Attn: Treasurer; if to any
Support Provider, at the address of such Support Provider as set forth in the
Series Supplement; or, as to each party, at such other address as shall be
designated by such party in a written notice to each other party.

        (b)     Any notice required or permitted to be given to a
Certificateholder shall be given by first-class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given, whether or not the Certificateholder receives
such notice.

        Section 11.5.  SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

        Section 11.6.  SEPARATE COUNTERPARTS. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

        Section 11.7.  ASSIGNMENTS; SUPPORT PROVIDER. This Agreement shall inure
to the benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. This Agreement shall also inure to the benefit
of any Support Provider. Without limiting the generality of the foregoing, all
covenants and agreements in this Agreement which confer rights upon any Support
Provider shall be for the benefit of and run directly to any Support Provider,
and any Support Provider shall be entitled to rely on and enforce such
covenants, subject, however, to the limitations on such rights provided in this
Agreement and the Basic Documents. The Support Provider, if any, may disclaim
any of its rights and powers under this Agreement (but not its duties and
obligations under any Series Support) upon delivery of a written notice to the
Owner Trustee.

                                       32
<Page>

        Section 11.8.  COVENANTS OF THE DEPOSITOR. The Depositor will not at any
time institute against the Trust any bankruptcy proceedings under any United
States federal or state bankruptcy or similar law in connection with any
obligations relating to the Certificates, the Notes, this Agreement or any of
the Basic Documents.

        Section 11.9.  NO PETITION. To the fullest extent permitted by
applicable law, the Owner Trustee (not in its individual capacity but solely as
Owner Trustee), by entering into this Agreement, each Certificateholder, by
accepting a Certificate, and the Indenture Trustee and each Noteholder by
accepting the benefits of this Agreement, hereby covenants and agrees that they
will not at any time institute against the Depositor, or join in any institution
against the Depositor of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any United
States Federal or state bankruptcy or similar law in connection with any
obligations relating to the Certificates, the Notes, this Agreement, any of the
Basic Documents, the Series Supplement or any Related Documents.

        Section 11.10. NO RECOURSE. Each Certificateholder by accepting a
Certificate acknowledges that such Certificateholder's Certificates represent
beneficial interests in the Owner Trust Estate only and do not represent
interests in or obligations of the Master Servicer, the Depositor, the Owner
Trustee, the Indenture Trustee, any Support Provider or any Affiliate thereof
and no recourse may be had against such parties or their assets, except as may
be expressly set forth or contemplated in this Agreement, the Certificates, the
Basic Documents, the Series Supplement or any Related Documents.

        Section 11.11. HEADINGS. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

        Section 11.12. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        Section 11.13. MASTER SERVICER. The Master Servicer is authorized to
prepare, or cause to be prepared, execute and deliver on behalf of the Trust all
such documents, reports, filings, instruments, certificates and opinions as it
shall be the duty of the Trust or Owner Trustee to prepare, file or deliver
pursuant to the Basic Documents, the Series Supplement or any Related Documents.
Upon written request, the Owner Trustee shall execute and deliver to the Master
Servicer a limited power of attorney appointing the Master Servicer the Trust's
agent and attorney-in-fact to prepare, or cause to be prepared, execute and
deliver all such documents, reports, filings, instruments, certificates and
opinions.

        Section 11.14. THIRD-PARTY BENEFICIARY. The parties hereto agree that
the Insurer is a third-party beneficiary hereof.

                                       33
<Page>

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

                                       WILMINGTON TRUST COMPANY,
                                         as Owner Trustee

                                       By: /s/ Janel R. Havrilla
                                           -------------------------------------
                                           Name: Janel R. Havrilla
                                           Title: Financial Services Officer

                                       HOUSEHOLD AUTO RECEIVABLES CORPORATION,
                                       as Depositor

                                       By: /s/ Steven H. Smith
                                           -------------------------------------
                                           Name: Steven H. Smith
                                           Title: Vice President & Assistant
                                                  Treasurer

Acknowledged and Agreed:
HOUSEHOLD FINANCE CORPORATION,
as Master Servicer

By: /s/ B. B. Moss, Jr.
    ---------------------------------
    Name: B. B. Moss, Jr.
    Title: Vice President & Treasurer

U.S. BANK NATIONAL ASSOCIATION
  not in its individual capacity
  but solely as Certificate Paying Agent

By: /s/ Nancie J. Arvin
    ---------------------------------
    Name: Nancie J. Arvin
    Title: Vice President

            [Signature Page for Amended and Restated Trust Agreement]

<Page>

                                                                       EXHIBIT A

                              [FORM OF CERTIFICATE]
NUMBER

                        HOUSEHOLD AUTOMOTIVE TRUST 2002-3
                                   CERTIFICATE

                       SEE REVERSE FOR CERTAIN DEFINITIONS

        THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE IN
RELIANCE UPON EXEMPTIONS PROVIDED BY THE SECURITIES ACT AND SUCH STATE
SECURITIES LAWS. NO RESALE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE
UNLESS SUCH RESALE OR TRANSFER (A) IS MADE IN ACCORDANCE WITH SECTION 3.4 OF THE
AMENDED AND RESTATED TRUST AGREEMENT PERTAINING TO THE HOUSEHOLD AUTOMOTIVE
TRUST 2002-3 (THE "AGREEMENT") AND (B) IS MADE (I) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (II) IN A TRANSACTION EXEMPT
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS, (III) TO THE SELLER OR (IV) TO A PERSON WHO THE TRANSFEROR
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A UNDER THE SECURITIES ACT THAT IS AWARE THAT THE RESALE OR OTHER
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A AND (C) UPON THE SATISFACTION OF
CERTAIN OTHER REQUIREMENTS SPECIFIED IN THE AGREEMENT. NEITHER THE DEPOSITOR,
THE MASTER SERVICER, THE TRUST NOR THE OWNER TRUSTEE IS OBLIGATED TO REGISTER
THE CERTIFICATES UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
LAWS.

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

                                   CERTIFICATE

evidencing a beneficial ownership interest in the assets of the Trust relating
to the Series Trust Estate, which includes a pool of motor vehicle retail
installment sale contracts sold to the Trust by Household Auto Receivables
Corporation.

(This Certificate does not represent an interest in or obligation of Household
Auto Receivables Corporation or any of its Affiliates, except to the extent
described below.)

        THIS CERTIFIES THAT Household Auto Receivables Corporation is the
registered owner of a fully-paid and, to the fullest extent permitted by
applicable law, nonassessable beneficial ownership interest representing a 100%
Percentage Interest in the assets of Household Automotive Trust 2002-3 (the
"Trust") formed by Household

                                       A-1
<Page>

Auto Receivables Corporation, a Nevada corporation (the "Depositor") and the
Series Trust Estate.

                  OWNER TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Certificates referred to in the within-mentioned
Agreement.

WILMINGTON TRUST COMPANY
not in its individual
capacity but solely as
Owner Trustee

by ________________________________________________________ Authenticating Agent
by _____________________________________________________________________________

        Household Automotive Trust 2002-3 (the "Trust"), was created pursuant to
a Trust Agreement, dated as of November 18, 2002 (the "Agreement"), between the
Depositor and Wilmington Trust Company, as owner trustee (the "Owner Trustee"),
as amended and restated as of November 18, 2002 and as supplemented by a Series
Supplement dated as of November 18, 2002 (the "Series Supplement"). A summary of
certain of the pertinent provisions of the Agreement and Series Supplement is
set forth below. To the extent not otherwise defined herein, the capitalized
terms used herein have the meanings assigned to them in the Agreement and the
Series Supplement.

        This certificate is one of the duly authorized certificates of Trust of
Household Automotive Trust 2002-3 designated as Certificates.

        This Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement and the Series Supplement, to which Agreement
the holder of this Certificate by virtue of the acceptance hereof assents and by
which such holder is bound. The property of the Trust consists of the Series
Trust Estate which includes a pool of motor vehicle retail installment sale
contracts (the "Receivables"), all monies due thereunder on or after specified
Cutoff Dates, security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, proceeds from claims on certain insurance
policies and certain other rights under the Agreement and the Master Sale and
Servicing Agreement and each related Transfer Agreement, all right, to and
interest of, the Depositor in and to (i) the Master Receivables Purchase
Agreement dated as of December 18, 2001 between Household Automotive Finance
Corporation and the Depositor, as such agreement may be amended and supplemented
from time to time, (ii) the Master Receivables Purchase Agreement dated as of
June 24, 2002 between Household Automotive Credit Corporation and the Depositor,
as such agreement may be amended or supplemented from time to time, and (iii)
the Master Receivables Purchase Agreement dated as of November 18, 2002 between
HAFC and the Depositor, as such agreement may be amended or supplemented from
time to time.

                                       A-2
<Page>

        The Notes have been issued pursuant to an Indenture dated as of November
18, 2002 (the "Indenture"), among the Trust, Household Finance Corporation, as
Master Servicer and U.S. Bank National Association, as Indenture Trustee and the
Series Supplement.

        Under the Series Supplement, there will be distributed on the 17th day
of each month or, if such 17th day is not a Business Day, the next Business Day
(the "Distribution Date"), commencing on December 17, 2002, to the Person in
whose name this Certificate is registered at the close of business on the
Business Day preceding such Distribution Date (the "Record Date") such
Certificateholder's fractional undivided interest in any amount to be
distributed to Certificateholders on such Distribution Date.

        The holder of this Certificate acknowledges and agrees that its rights
to receive distributions in respect of this Certificate are subordinated to the
rights of the Noteholders as described in the Master Sale and Servicing
Agreement, the Indenture, the Agreement and the Series Supplement, as
applicable.

        Distributions on this Certificate will be made as provided in the
Agreement by the Owner Trustee by wire transfer or check mailed to the
Certificateholder of record in the Certificate Register without the presentation
or surrender of this Certificate or the making of any notation hereon. Except as
otherwise provided in the Agreement and notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Owner
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency maintained for the purpose
by the Owner Trustee in the Corporate Trust Office.

        Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

        Unless the certificate of authentication hereon shall have been executed
by an authorized officer of the Owner Trustee, by manual signature, this
Certificate shall not entitle the holder hereof to any benefit under the
Agreement or the Master Sale and Servicing Agreement or be valid for any
purpose.

        THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

                                       A-3
<Page>

        IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in
its individual capacity, has caused this Certificate to be duly executed.

                                  HOUSEHOLD AUTOMOTIVE TRUST
                                  2002-3

                                  By: WILMINGTON TRUST COMPANY not
                                  in its individual capacity but solely as Owner
                                  Trustee

Dated:                            By:
                                      ------------------------------------

                                  By:
                                      ------------------------------------
                                      Name:
                                      Title:

                                       A-4
<Page>

                            (Reverse of Certificate)

        The Certificates do not represent an obligation of, or an interest in,
the Depositor, the Master Servicer, the Owner Trustee or any Affiliates of any
of them and no recourse may be had against such parties or their assets, except
as may be expressly set forth or contemplated herein or in the Agreement, the
Indenture, the Basic Documents or any Related Documents. In addition, this
Certificate is not guaranteed by any governmental agency or instrumentality and
is limited in right of payment to certain collections with respect to the
Receivables, as more specifically set forth herein and in the Master Sale and
Servicing Agreement. A copy of each of the Master Sale and Servicing Agreement,
the Agreement and the Series Supplement may be examined during normal business
hours at the principal office of the Depositor, and at such other places, if
any, designated by the Depositor, by any Certificateholder upon written request.

        As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies of the Certificate Registrar maintained by the Owner Trustee
in the Corporate Trust Office, accompanied by a written instrument of transfer
in form satisfactory to the Owner Trustee and the Certificate Registrar duly
executed by the holder hereof or such holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
evidencing the same aggregate interest in the Trust will be issued to the
designated transferee. The initial Certificate Registrar appointed under the
Agreement is the Owner Trustee.

        The Certificates are issuable as registered Certificates in any
Percentage Interest not to exceed 100%. As provided in the Agreement and subject
to certain limitations therein set forth, Certificates are exchangeable for new
Certificates in authorized denominations evidencing the same aggregate
Percentage Interest, as requested by the holder surrendering the same. No
service charge will be made for any such registration of transfer or exchange,
but the Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.

        The Owner Trustee and the Certificate Registrar and any agent of the
Owner Trustee or the Certificate Registrar may treat the person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Owner Trustee, the Certificate Registrar nor any such agent shall be
affected by any notice to the contrary.

        The Certificates may not be acquired by or for the account of (a) an
employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to
the provisions of Title I of ERISA, (b) a plan (as defined in Section 4975(e)
(1) of the Code) that is subject to Section 4975 of the Code or (c) any entity
whose underlying assets include plan assets by reason of such plan's investment
in the entity (each, a "Benefit Plan"). The Certificate Registrar shall not
register the transfer of a Certificate unless the transferee has delivered to
the Owner Trustee a representation letter in form and substance satisfactory to
the

                                       A-5
<Page>

Owner Trustee to the effect that the transferee is not, and is not acquiring the
Certificate for the account of, a Benefit Plan.

        The recitals contained herein shall be taken as the statements of the
Depositor or the Master Servicer, as the case may be, and the Owner Trustee
assumes no responsibility for the correctness thereof. The Owner Trustee makes
no representations as to the validity or sufficiency of this Certificate or of
any Receivable or related document.

        Unless the certificate of authentication hereon shall have been executed
by an authorized officer of the Owner Trustee, by manual or facsimile signature,
this Certificate shall not entitle the holder hereof to any benefit under the
Agreement or the Master Sale and Servicing Agreement or be valid for any
purpose.

                                       A-6
<Page>

                                   ASSIGNMENT

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

________________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

____________________ Attorney to transfer said Certificate on the books of the
Certificate Registrar, with full power of substitution in the premises.

Dated:

                                                                               *
                                                 -----------------------------
                                                 Signature Guaranteed:
                                                                               *
                                                 -----------------------------
----------
*    NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Certificate in
every particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Certificate Registrar, which requirements include membership
or participation in STAMP or such other "signature guarantee program" as may be
determined by the Certificate Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

                                       A-7
<Page>

                                                                       EXHIBIT B

                         [FORM OF CERTIFICATE OF TRUST]

                              CERTIFICATE OF TRUST
                                       OF
                        HOUSEHOLD AUTOMOTIVE TRUST 2002-3

        THIS Certificate of Trust of Household Automotive Trust 2002-3 (the
"Trust") is being duly executed and filed on behalf of the Trust by the
undersigned, as trustee, to form a statutory trust under the Delaware Statutory
Trust Act (12 DEL. C. Section 3801 et seq.) (the "Act").

        1. NAME. The name of the statutory trust formed by this Certificate of
Trust is Household Automotive Trust 2002-3.

        2. DELAWARE TRUSTEE. The name and business address of the trustee of the
Trust in the State of Delaware are Wilmington Trust Company, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-1600.

        3. EFFECTIVE DATE. This Certificate of Trust shall be effective upon
filing.

        IN WITNESS WHEREOF, the undersigned have duly executed this Certificate
of Trust in accordance with Section 3811(a)(1) of the Act.

                                        WILMINGTON TRUST COMPANY, not
                                        in its individual capacity but solely as
                                        Owner Trustee

                                        By:
                                           ------------------------------------
                                           Name:
                                           Title:

                                       B-1<Page>

                                                                     Exhibit 4.3
                                                                  EXECUTION COPY

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

                       MASTER SALE AND SERVICING AGREEMENT

                                      among

                       HOUSEHOLD AUTOMOTIVE TRUST 2002-3,
                                   as Issuer,

                     HOUSEHOLD AUTO RECEIVABLES CORPORATION,
                                   as Seller,

                         HOUSEHOLD FINANCE CORPORATION,
                               as Master Servicer

                                       and

                         U.S. BANK NATIONAL ASSOCIATION,
                              as Indenture Trustee

                          Dated as of November 18, 2002

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

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                               Page
                                                                                               ----
<S>                                                                                              <C>
                                    ARTICLE I

                                   Definitions

SECTION 1.1.   Definitions........................................................................1
SECTION 1.2.   Other Interpretive Provisions.....................................................17
SECTION 1.3.   Usage of Terms....................................................................18
SECTION 1.4.   Certain References................................................................18
SECTION 1.5.   No Recourse.......................................................................18
SECTION 1.6.   Action by or Consent of Noteholders...............................................18

                                   ARTICLE II

                            Conveyance of Receivables

SECTION 2.1.   Conveyance of Receivables.........................................................19
SECTION 2.2.   Further Encumbrance of Owner Trust Estate.........................................23

                                   ARTICLE III

                                 The Receivables

SECTION 3.1.   Representations and Warranties of Seller..........................................24
SECTION 3.2.   Repurchase upon Breach............................................................24
SECTION 3.3.   Custody of Receivables Files......................................................25

                                   ARTICLE IV

                   Administration and Servicing of Receivables

SECTION 4.1.   Duties of the Master Servicer.....................................................26
SECTION 4.2.   Collection of Receivable Payments; Modifications of Receivables...................27
SECTION 4.3.   Realization Upon Receivables......................................................29
SECTION 4.4.   Insurance.........................................................................30
SECTION 4.5.   Maintenance of Security Interests in Vehicles.....................................31
SECTION 4.6.   Covenants, Representations, and Warranties of Master Servicer.....................31
SECTION 4.7.   Repurchase of Receivables Upon Breach of Covenant.................................33
SECTION 4.8.   Total Servicing Fee; Payment of Certain Expenses by Master Servicer...............33
SECTION 4.9.   Master Servicer's Certificate.....................................................34
SECTION 4.10.  Annual Statement as to Compliance, Notice of Master Servicer Termination Event....34
</Table>

                                        i
<Page>

<Table>
<S>                                                                                              <C>
SECTION 4.11.  Annual Independent Accountants' Report............................................34
SECTION 4.12.  Access to Certain Documentation and Information Regarding Receivables.............35
SECTION 4.13.  Fidelity Bond and Errors and Omissions Policy.....................................35

                                    ARTICLE V

                         Trust Accounts; Distributions;
                Statements to Certificateholders and Noteholders

SECTION 5.1.   Establishment of Trust Accounts...................................................36
SECTION 5.2.   Certain Reimbursements to the Master Servicer.....................................38
SECTION 5.3.   Application of Collections........................................................38
SECTION 5.4.   Additional Deposits...............................................................38

                                   ARTICLE VI

                                    RESERVED

                                   ARTICLE VII

                                    RESERVED

                                  ARTICLE VIII

                                   The Seller

SECTION 8.1.   Representations of Seller.........................................................39
SECTION 8.2.   Corporate Existence...............................................................41
SECTION 8.3.   Liability of Seller; Indemnities..................................................42
SECTION 8.4.   Merger or Consolidation of, or Assumption of the Obligations of, Seller...........43
SECTION 8.5.   Limitation on Liability of Seller and Others......................................43
SECTION 8.6.   Seller May Own Certificates or Notes..............................................44

                                       ARTICLE IX

                                   The Master Servicer

SECTION 9.1.   Representations of Master Servicer................................................44
SECTION 9.2.   Liability of Master Servicer; Indemnities.........................................46
SECTION 9.3.   Merger or Consolidation of, or Assumption of the Obligations of the Master
               Servicer..........................................................................48
SECTION 9.4.   Limitation on Liability of Master Servicer and Others.............................48
SECTION 9.5.   Delegation of Duties..............................................................49
SECTION 9.6.   Master Servicer Not to Resign.....................................................49
</Table>

                                       ii
<Page>

<Table>
<S>                                                                                              <C>
SECTION 9.7.   Subservicing Agreements Between Master Servicer and Subservicers..................50
SECTION 9.8.   Successor Subservicers............................................................50

                                    ARTICLE X

                                     Default

SECTION 10.1.  Master Servicer Termination Event.................................................51
SECTION 10.2.  Consequences of a Master Servicer Termination Event...............................52
SECTION 10.3.  Appointment of Successor..........................................................54
SECTION 10.4.  Notification to Noteholders and Certificateholders................................55
SECTION 10.5.  Waiver of Past Defaults...........................................................55
SECTION 10.6.  Successor to Master Servicer......................................................55

                                   ARTICLE XI

                                   Termination

SECTION 11.1.  Optional Purchase of All Receivables..............................................55

                                   ARTICLE XII

                  Administrative Duties of the Master Servicer

SECTION 12.1.  Administrative Duties.............................................................56
SECTION 12.2.  Records...........................................................................59
SECTION 12.3.  Additional Information to be Furnished to the Issuer..............................59

                                      ARTICLE XIII

                                Miscellaneous Provisions

SECTION 13.1.  Amendments........................................................................59
SECTION 13.2.  Protection of Title to Series Trust Estate........................................60
SECTION 13.3.  Notices...........................................................................62
SECTION 13.4.  Assignment........................................................................62
SECTION 13.5.  Limitations on Rights of Others...................................................63
SECTION 13.6.  Severability......................................................................63
SECTION 13.7.  Separate Counterparts.............................................................63
SECTION 13.8.  Headings..........................................................................63
SECTION 13.9.  Governing Law.....................................................................63
SECTION 13.10. Assignment to Indenture Trustee...................................................63
SECTION 13.11. Nonpetition Covenants.............................................................63
SECTION 13.12. Limitation of Liability of the Owner Trustee and the Indenture Trustee............64
SECTION 13.13. Limitation of Liability of Issuer.................................................64
SECTION 13.14. Independence of the Master Servicer...............................................65
</Table>

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<Table>
<S>                                                                                              <C>
SECTION 13.15. No Joint Venture..................................................................65
SECTION 13.16. Third-Party Beneficiary...........................................................65
</Table>

                                    EXHIBITS

Exhibit A    -    Form of Transfer Agreement

                                       iv
<Page>

          MASTER SALE AND SERVICING AGREEMENT dated as of November 18, 2002,
among HOUSEHOLD AUTOMOTIVE TRUST 2002-3, a Delaware statutory trust (the
"Issuer" or the "Trust"), HOUSEHOLD AUTO RECEIVABLES CORPORATION, a Nevada
corporation (the "Seller"), HOUSEHOLD FINANCE CORPORATION, a Delaware
corporation (the "Master Servicer") and U.S. BANK NATIONAL ASSOCIATION, a
national banking association, in its capacity as Indenture Trustee.

          WHEREAS the Issuer desires to purchase from time to time Receivables
arising in connection with motor vehicle retail installment sale contracts
originated or acquired by Household Automotive Finance Corporation ("HAFC") or
any of its predecessors or Affiliates, including, but not limited to, Household
Automotive Credit Corporation ("HACC");

          WHEREAS the Seller will purchase from time to time Receivables from
HAFC or one or more of its Affiliates, including, but not limited to, HACC, and
is willing to sell Receivables to the Issuer;

          WHEREAS the Master Servicer is willing to service all such
Receivables;

          NOW, THEREFORE, in consideration of the promises and the mutual
covenants herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.1.   DEFINITIONS. Whenever used in this Agreement, the
following words and phrases shall have the following meanings:

          "Accountants' Report" means the report of a firm of nationally
recognized independent accountants described in Section 4.11.

          "Accounting Date" means, with respect to a Distribution Date, the last
day of the Collection Period immediately preceding such Distribution Date.

          "Actuarial Method" means the method of allocating a fixed level
monthly payment on an obligation between principal and interest, pursuant to
which the portion of such payment that is allocated to interest is equal to the
product of (a) 1/12, (b) the fixed annual rate of interest on such obligation
and (c) the outstanding principal balance of such obligation.

          "Actuarial Receivable" means a Receivable under which the portion of
the payment allocated to interest and the portion allocable to principal is
determined in accordance with the Actuarial Method.

<Page>

          "Addition Notice" means, with respect to any transfer of Receivables
to the Trust pursuant to Section 2.1 of this Agreement, notice of the Seller's
election to transfer Receivables to the Trust, such notice to designate the
related Transfer Date, and the approximate principal amount of Receivables to be
transferred on such Transfer Date.

          "Additional Principal Amount" has the meaning, if any, assigned to
such term in the Series Supplement.

          "Administrative Agent" means the Person, if any, specified in the Note
Purchase Agreement.

          "Affiliate" means, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to
any Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.

          "Aggregate Principal Balance" means, with respect to any date of
determination, the sum of the Principal Balances for all Receivables (other than
(i) any Receivable that has become a Liquidated Receivable and (ii) any
Receivable that has become a Repurchased Receivable as of the date of
determination).

          "Agreement" means this Master Sale and Servicing Agreement, as the
same may be amended and supplemented from time to time.

          "Amount Financed" means, with respect to a Receivable, the aggregate
amount advanced under such Receivable toward the purchase price of the Financed
Vehicle and any related costs, including amounts advanced in respect of
accessories, insurance premiums, service and warranty contracts, other items
customarily financed as part of retail motor vehicle installment sale contracts
and related costs.

          "Annual Percentage Rate" or "APR" of a Receivable means the annual
percentage rate of finance charges or service charges, as stated in the related
Contract.

          "Basic Documents" has the meaning assigned to such term in the Series
Supplement.

          "Business Day" has the meaning assigned to such term in the Series
Supplement.

          "Certificates" has the meaning assigned to such term in the Trust
Agreement.

          "Certificateholder" means the holders of the Certificates.

          "Class" means a class of Notes or Certificates, as the context
requires.

                                        2
<Page>

          "Closing Date" has the meaning assigned to such term in the Series
Supplement.

          "Collected Funds" means, with respect to any Collection Period, the
amount of funds in the Collection Account representing collections (including,
where applicable, all payment cancellation fees and all administrative fees,
expenses and charges actually paid by or on behalf of Obligors, including late
fees, payment fees and liquidation fees but excluding taxes, assessments, credit
insurance payments or similar items) received by the Master Servicer on or with
respect to the Receivables during such Collection Period, including all Net
Liquidation Proceeds collected during such Collection Period (but excluding any
Repurchase Amounts).

          "Collection Account" means the collection account designated in the
Series Supplement.

          "Collection Period" means, (i) with respect to the first Distribution
Date, the period beginning on the opening of business on the day after the
related Cutoff Date and ending on the close of business on the last day of the
calendar month preceding such Distribution Date and (ii) with respect to each
subsequent Distribution Date, the preceding calendar month. Any amount stated
"as of the close of business of the last day of a Collection Period" shall give
effect to all applications of collections on such day.

          "Collection Records" means all manually prepared or computer generated
records relating to collection efforts or payment histories with respect to the
Receivables.

          "Contract" means a motor vehicle retail installment sales contract.

          "Controlling Party" has the meaning assigned to such term in the
Series Supplement.

          "Corporate Trust Office" has the meaning assigned to such term in the
Series Supplement.

          "Cram Down Loss" means, with respect to a Receivable, if a court of
appropriate jurisdiction in an insolvency proceeding shall have issued a final
order reducing the amount owed on a Receivable or otherwise modifying or
restructuring the scheduled payments to be made on a Receivable, an amount equal
to the excess of the Principal Balance of such Receivable immediately prior to
such order over the Principal Balance of such Receivable as so reduced. A "Cram
Down Loss" shall be deemed to have occurred on the date of issuance of such
order.

          "Cutoff Date" means, except as otherwise provided in the Series
Supplement, with respect to a Receivable, the date designated in the related
Transfer Agreement as the Cutoff Date for such Receivable transferred to the
Trust on the related Transfer Date.

                                        3
<Page>

          "Dealer" means a dealer who sold a Financed Vehicle and who originated
and assigned the respective Receivable, directly or indirectly, to HAFC or one
of its Affiliates under a Dealer Agreement or pursuant to a Dealer Assignment.

          "Dealer Agreement" means any agreement between HAFC or one if its
Affiliates and a Dealer relating to the acquisition of Receivables from a Dealer
by HAFC or one of its Affiliates.

          "Dealer Assignment" means, with respect to a Receivable, the executed
assignment executed by a Dealer conveying such Receivable to HAFC or one of its
Affiliates.

          "Delivery" means, with respect to Trust Account Property:

          (1)  (a)     with respect to bankers' acceptances, commercial paper,
negotiable certificates of deposit and other obligations that constitute
"instruments" within the meaning of Article 9 of the UCC, transfer thereof:

               (i)     by physical delivery to the Indenture Trustee, indorsed
          to, or registered in the name of, the Indenture Trustee or its nominee
          or indorsed in blank;

               (ii)    by the Indenture Trustee continuously maintaining
          possession of such instrument; and

               (iii)   by the Indenture Trustee continuously indicating by
          book-entry that such instrument is credited to the related Trust
          Account;

          (b)  with  respect to a "certificated security" (as defined in
     Article 8 of the UCC), transfer thereof:

               (i)     by (x) physical delivery of such certificated security to
          the Indenture Trustee, provided that if the certificated security is
          in registered form, it shall be indorsed to, or registered in the name
          of, the Indenture Trustee or indorsed in blank, and (y) the Indenture
          Trustee continuously maintaining possession of such certificated
          security; or

               (ii)    by another Person (not a securities intermediary) (1)
          acquiring possession of such certificated security on behalf of the
          Indenture Trustee, provided that if the certificated security is in
          registered form, it shall be indorsed to, or registered in the name
          of, the Indenture Trustee or indorsed in blank, or (2) having acquired
          possession of such certificated security, acknowledging that it holds
          such certificated security for the Indenture Trustee, and, in either
          such case, continuously maintaining possession of such certificated
          security; and

     by the Indenture Trustee continuously indicating by book-entry that such
     certificated security is credited to the related Trust Account;

                                        4
<Page>

          (c)  with respect to any security issued by the U.S. Treasury, the
     Federal Home Loan Mortgage Corporation or the Federal National Mortgage
     Association that is a book-entry security held through the Federal Reserve
     System pursuant to Federal book entry regulations, transfer thereof
     pursuant to the following procedures, all in accordance with applicable
     law, including applicable federal regulations and Articles 8 and 9 of the
     UCC:

               (i)     by (x) book-entry registration of such property to an
          appropriate book-entry account maintained with a Federal Reserve Bank
          by a securities intermediary that is also a "depositary" pursuant to
          applicable federal regulations and issuance by such securities
          intermediary of a deposit advice or other written confirmation of such
          book-entry registration to the Indenture Trustee of the purchase by
          the securities intermediary on behalf of the Indenture Trustee of such
          book-entry security; the making by such securities intermediary of
          entries in its books and records identifying such book-entry security
          held through the Federal Reserve System pursuant to Federal book-entry
          regulations as belonging to the Indenture Trustee and continuously
          indicating that such securities intermediary holds such book-entry
          security solely as agent for the Indenture Trustee or such additional
          or alternative procedures as are appropriate under applicable law to
          effect a complete transfer of ownership of such property to the
          Indenture Trustee or its nominee or custodian; or (y) continuous
          book-entry registration of such property to a book-entry account
          maintained by the Indenture Trustee with a Federal Reserve Bank; and

               (ii)    by the Indenture Trustee continuously indicating by
          book-entry that such property is credited to the related Trust
          Account;

          (d)  with respect to any asset in the Trust Accounts that is an
     "uncertificated security" (as defined in Article 8 of the UCC) and that is
     not governed by clause (c) above or clause (e) below:

               (i)     transfer thereof:

               (A)     by registration to the Indenture Trustee as the
          registered owner thereof, on the books and records of the issuer
          thereof; or

               (B)     by another Person (not a securities intermediary) (1)
          becoming the registered owner of the uncertificated security on behalf
          of the Indenture Trustee, or (2) having become the registered owner of
          the uncertificated security, acknowledging that it holds such
          uncertificated security for the Indenture Trustee; or

               (ii)    the issuer of the uncertificated security has agreed that
          it will comply with instructions originated by the Indenture Trustee
          with

                                        5
<Page>

          respect to such uncertificated security without further consent of the
          registered owner thereof; and

     the Indenture Trustee continuously indicating by book-entry that such
     uncertificated security is credited to the related Trust Account;

          (e)  in the case of a security in the custody of or maintained on the
     books of a clearing corporation (as defined in Article 8 of the UCC) or its
     nominee, transfer thereof by causing:

               (i)     the relevant clearing corporation to credit such security
          to a securities account of the Indenture Trustee at such clearing
          corporation; and

               (ii)    the Indenture Trustee to continuously indicate by
          book-entry that such security is credited to the related Trust
          Account; or

          (f)  with respect to a "security entitlement" (as defined in Article 8
     of the UCC) to be transferred to or for the benefit of the Indenture
     Trustee and not governed by clauses (c) or (e) above, transfer thereof by:

               (i)     a securities intermediary's (A) indicating by book entry
          that the underlying "financial asset" (as defined in Article 8 of the
          UCC) has been credited to the Indenture Trustee's "securities account"
          (as defined in Article 8 of the UCC), (B) receiving a financial asset
          from the Indenture Trustee or acquiring the underlying financial asset
          for the Indenture Trustee, and in either case, accepting it for credit
          to the Indenture Trustee's securities account, or (C) becoming
          obligated under other law, regulation or rule to credit the underlying
          financial asset to the Indenture Trustee's securities account,

               (ii)    the making by the securities intermediary of entries on
          its books and records continuously identifying such security
          entitlement as belonging to the Indenture Trustee; and continuously
          indicating by book-entry that such securities entitlement is credited
          to the Indenture Trustee's securities account; and

               (iii)   the Indenture Trustee's continuously indicating by
          book-entry that such security entitlement (or all rights and property
          of the Indenture Trustee representing such securities entitlement) is
          credited to the related Trust Account; and/or

          (2)  In the case of any such asset, (i) compliance with such
additional or alternative procedures as are now or may hereafter become
appropriate to effect the complete transfer of ownership of, or control over,
any such Trust Account Property to the Indenture Trustee free and clear of any
adverse claims, consistent with changes in applicable law or regulations or the
interpretation thereof, and (ii) the Indenture Trustee's

                                        6
<Page>

continuously indicating by book entry that such asset is credited to the related
Trust Account.

          In each case of delivery contemplated herein, the Indenture Trustee
shall make appropriate notations on its records, and shall cause the same to be
made on the records of its nominees, indicating that securities are held in
trust pursuant to and as provided in this Agreement.

          "Depositor" means the Seller in its capacity as Depositor under the
Trust Agreement.

          "Determination Date" means, unless otherwise provided in the Series
Supplement, the earlier of the fifth calendar day (or if such day is not a
Business Day, the next preceding Business Day) or the third Business Day
preceding each Distribution Date.

          "Distribution Date" has the meaning assigned to such term in the
Series Supplement.

          "Eligibility Criteria" means the criteria set forth in the Schedule of
Eligibility Criteria.

          "Eligible Bank" means, except as otherwise provided in the Series
Supplement, any depository institution (which shall initially be the Indenture
Trustee), organized under the laws of the United States of America or any one of
the states thereof or the District of Columbia (or any United States branch or
agency of a foreign bank), which is subject to supervision and examination by
federal or state banking authorities and which at all times (a) has a net worth
in excess of $50,000,000 and (b) (i) has a rating of P-1 from Moody's, A-1 from
Standard & Poor's and F1 from Fitch, in each case only if such Person is a
Rating Agency, with respect to short-term deposit obligations, or such other
lower ratings acceptable to the Rating Agency and the Insurer (for so long as it
is the Controlling Party), or (ii) if such institution has issued long-term
unsecured debt obligations, a rating acceptable to the Rating Agency and the
Insurer (for so long as it is the Controlling Party) with respect to long-term
unsecured debt obligations.

          "Eligible Deposit Account" means, except as otherwise provided in the
Series Supplement, either (a) a segregated account with an Eligible Bank or (b)
a segregated trust account with the corporate trust department of a depository
institution with corporate trust powers organized under the laws of the United
States of America or any state thereof or the District of Columbia (or any
United States branch or agency of a foreign bank), provided that such
institution also must have a rating of Baa3 or higher from Moody's, a rating of
BBB- or higher from Standard & Poor's and a rating of BBB- or higher from Fitch,
in each case only if such Person is a Rating Agency, with respect to long-term
deposit obligations, or such other lower ratings acceptable to the Rating Agency
and the Insurer (for so long as it is the Controlling Party).

          "Eligible Investments" shall mean, except as otherwise provided in a
Series Supplement, (i) negotiable instruments or securities represented by
instruments in

                                        7
<Page>

bearer or registered form (or, in the case of Eligible Investments described in
clause (a) of this definition, book-entry securities representing such
obligations), or (ii) securities entitlements (as defined in Article 8 of the
UCC) arising from Delivery of any such negotiable instruments or securities in
accordance with the provisions of clause (1)(f) of the definition of such term,
or (iii) in the case of deposits described below, deposit accounts held in the
name of the Indenture Trustee in trust for the benefit of the Holders of the
Securities, subject to the exclusive custody and control of the Indenture
Trustee and for which the Indenture Trustee has sole signature authority, which
evidence or arise out of, as the case may be:

          (a)  direct obligations of, or obligations fully guaranteed as to
timely payment by, the United States of America;

          (b)  demand deposits, time deposits or certificates of deposit (having
original maturities of no more than 365 days) of depositary institutions or
trust companies incorporated under the laws of the United States of America or
any state thereof (or domestic branches of foreign banks) and subject to
supervision and examination by federal or state banking or depositary
institution authorities; PROVIDED, that at the time of the Trust's investment or
contractual commitment to invest therein, the short-term debt rating of such
depository institution or trust company shall be satisfactory to the Rating
Agency, and PROVIDED FURTHER that the "jurisdiction" of such depositary
institution or trust company, for purposes of Article 9 of the UCC, shall be a
state in which Revised Article 9 of the UCC has become effective and in which
security interests in deposit accounts are subject to Article 9, as in effect
therein;

          (c)  commercial paper (having original or remaining maturities of not
more than 30 days) having, at the time of the Trust's investment or contractual
commitment to invest therein, a rating satisfactory to the Rating Agency;

          (d)  investments in money market funds having, at the time of the
Trust's investment therein, a rating satisfactory to the Rating Agency;

          (e)  demand deposits, time deposits and certificates of deposit which
are fully insured by the FDIC having, at the time of the Trust's investment
therein, a rating satisfactory to the Rating Agency;

          (f)  bankers' acceptances (having original maturities of no more than
365 days) issued by a depository institution or trust company referred to in (b)
above;

          (g)  (x) time deposits (having maturities not later than the
succeeding Distribution Date) other than as referred to in clause (e) above,
with a Person the commercial paper of which has a credit rating satisfactory to
the Rating Agency or (y) notes which are payable on demand issued by Household
Finance Corporation; PROVIDED such notes will constitute Eligible Investments
only if Household Finance Corporation has, at the time of the Trust's investment
in such notes, a commercial paper rating of not less than A-1 by Standard &
Poor's, P-1 by Moody's and F1 by Fitch (or such other rating

                                        8
<Page>

as shall be satisfactory to such Rating Agency and the Insurer (for so long as
it is the Controlling Party)); or

          (h)  any other investment of a type or rating that is acceptable to
the Rating Agency and the Insurer (for so long as it is the Controlling Party).

          Any of the foregoing Eligible Investments may be purchased by or
through the Indenture Trustee or through any of its Affiliates.

          "Eligible Servicer" means Household Finance Corporation or any other
Person reasonably acceptable to the Insurer (for so long as it is the
Controlling Party) which at the time of its appointment as Master Servicer, (i)
is servicing a portfolio of motor vehicle retail installment sales contracts
and/or motor vehicle installment loans, (ii) is legally qualified and has the
capacity to service the Receivables, (iii) has demonstrated the ability
professionally and competently to service a portfolio of motor vehicle retail
installment sales contracts and/or motor vehicle installment loans similar to
the Receivables with reasonable skill and care, (iv) is qualified and entitled
to use, pursuant to a license or other written agreement, and agrees to maintain
the confidentiality of, the software which the Master Servicer uses in
connection with performing its duties and responsibilities under this Agreement
or otherwise has available software which is adequate to perform its duties and
responsibilities under this Agreement and (v) has a net worth of at least
$50,000,000.

          "Eligible Subservicer" means Household Automotive Finance Corporation
or any wholly owned subsidiary of Household Finance Corporation or any other
Person reasonably acceptable to the Insurer (for so long as it is the
Controlling Party) which at the time of its appointment as Subservicer, (i) is
servicing a portfolio of motor vehicle retail installment sales contracts and/or
motor vehicle installment loans, (ii) is legally qualified and has the capacity
to service the Receivables, (iii) has demonstrated the ability professionally
and competently to service a portfolio of motor vehicle retail installment sales
contracts and/or motor vehicle installment loans similar to the Receivables with
reasonable skill and care, and (iv) is qualified and entitled to use, pursuant
to a license or other written agreement, and agrees to maintain the
confidentiality of, the software which the Master Servicer uses in connection
with performing its duties and responsibilities under this Agreement or
otherwise has available software which is adequate to perform its duties and
responsibilities under this Agreement.

          "Financed Vehicle" means a new or used automobile, light duty truck or
van securing an Obligor's indebtedness under the respective Receivable.

          "Fitch" means Fitch Inc., or its successor.

          "Grant" has the meaning assigned to such term in the Indenture.

          "HACC" means Household Automotive Credit Corporation, a Delaware
Corporation. For the avoidance of doubt, HACC is an Affiliate of HAFC.

                                        9
<Page>

          "HAFC" means Household Automotive Finance Corporation, a Delaware
Corporation.

          "Indenture" has the meaning assigned to such term in the Series
Supplement.

          "Indenture Trustee" means the Person acting as Indenture Trustee under
the Indenture, its successors in interest and any successor Indenture Trustee
under the Indenture.

          "Indenture Trustee Fee" means the fees and reasonable out-of-pocket
expenses due to the Indenture Trustee as may be set forth in that certain fee
agreement dated as of the date hereof between the Master Servicer and the
Indenture Trustee.

          "Insolvency Event" means, with respect to a specified Person, (a) the
filing of a petition against such Person or the entry of a decree or order for
relief by a court having jurisdiction in respect of such Person or any
substantial part of its property in an involuntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator, or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of such Person's
affairs, and such petition, decree or order shall remain unstayed and in effect
for a period of 60 consecutive days; or (b) the commencement by such Person of a
voluntary case under any applicable federal or state bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by such Person to
the entry of an order for relief in an involuntary case under any such law, or
the consent by such Person to the appointment of or taking possession by, a
receiver, liquidator, assignee, custodian, trustee, sequestrator, or similar
official for such Person or for any substantial part of its property, or the
making by such Person of any general assignment for the benefit of creditors, or
the failure by such Person generally to pay its debts as such debts become due,
or the taking of action by such Person in furtherance of any of the foregoing.

          "Insurance Policy" means, with respect to a Receivable, any insurance
policy (including the insurance policies described in Section 4.4 hereof)
benefiting the holder of the Receivable providing loss or physical damage,
credit life, credit disability, theft, mechanical breakdown or similar coverage
with respect to the Financed Vehicle or the Obligor.

          "Insurance Agreement" has the meaning assigned to such term in the
Series Supplement.

          "Insurer" has the meaning assigned to such term in the Series
Supplement.

          "Interest Period" has the meaning assigned to such term in the Series
Supplement.

          "Issuer" means Household Automotive Trust 2002-3, a Delaware statutory
trust formed under the laws of the State of Delaware.

                                       10
<Page>

          "Lien" means a security interest, lien, charge, pledge, equity, or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Receivable by operation of law as a result of any
act or omission by the related Obligor, provided that the lien created by this
Agreement or the Indenture shall not be deemed to constitute a Lien.

          "Lien Certificate" means, with respect to a Financed Vehicle, an
original certificate of title, certificate of lien or other notification issued
by the Registrar of Titles of the applicable state to a secured party which
indicates that the lien of the secured party on the Financed Vehicle is recorded
on the original certificate of title. In any jurisdiction in which the original
certificate of title is required to be given to the Obligor, the term "Lien
Certificate" shall mean only a certificate or notification issued to a secured
party.

          "Liquidated Receivable" means, with respect to any Collection Period,
upon the earliest of any of the following to occur, a Receivable as to which (i)
such Receivable has been liquidated by the Master Servicer through the sale of
the Financed Vehicle, (ii) 90 days have elapsed since the Master Servicer
repossessed the Financed Vehicle, (iii) proceeds have been received in respect
of such Receivable which, in the Master Servicer's reasonable judgment,
constitute the final amounts recoverable in respect of such Receivable or (iv)
10% or more of a Scheduled Payment shall have become 150 or more days delinquent
(or, in the case where the Obligor of such Receivable is subject to an
Insolvency Event, 10% or more of a Scheduled Payment shall have become 210 or
more days delinquent); PROVIDED, HOWEVER, that the number of days specified in
either clause (ii) or (iv) may at the election of the Master Servicer be such
shorter number of days as may from time to time be consistent with the Master
Servicer's then-current collection policy. Any Receivable that becomes a
Repurchased Receivable on or before the related Accounting Date shall not be a
Liquidated Receivable.

          "Managing Agent" means, with respect to any Purchaser Group, the
Person specified as the Managing Agent for such Purchaser Group from time to
time pursuant to the Note Purchase Agreement (including, without limitation,
Schedule I thereto) or any Joinder Agreement thereto or any Assignment and
Acceptance Agreement thereto.

          "Majority Purchaser" has the meaning assigned to such term in the Note
Purchase Agreement.

          "Master Receivables Purchase Agreements" has the meaning assigned to
such term in the Series Supplement.

          "Master Servicer" means Household Finance Corporation, as the servicer
of the Receivables, and each successor Master Servicer pursuant to Section 10.3.

          "Master Servicer Credit Facility" means the credit facility maintained
by the Master Servicer with a Master Servicer Credit Facility Issuer pursuant to
Section 4.2(e).

                                       11
<Page>

          "Master Servicer Credit Facility Issuer" means a depository
institution or insurance company that qualifies pursuant to Section 4.2(e).

          "Master Servicer Termination Event" means an event specified in
Section 10.1.

          "Master Servicer's Certificate" has the meaning assigned to such term
in the Series Supplement.

          "Monthly Extension Rate" means, with respect to any Accounting Date,
the fraction, expressed as a percentage, the numerator of which is the aggregate
Principal Balance of Receivables whose payments were extended during the
Collection Period ended on such Accounting Date and the denominator of which is
the Aggregate Principal Balance as of the Accounting Date on which such
Collection Period began.

          "Monthly Records" means all records and data maintained by the Master
Servicer with respect to the Receivables, including the following with respect
to each Receivable: the account number; the originating Dealer, if any; Obligor
name; Obligor address; Obligor home phone number; Obligor business phone number;
original Principal Balance; original term; Annual Percentage Rate; current
Principal Balance; current remaining term; origination date; first payment date;
final scheduled payment date; next payment due date; date of most recent
payment; new/used classification; collateral description; days currently
delinquent; number of contract extensions (months) to date; amount of Scheduled
Payment; current Insurance Policy expiration date; and past due late charges.

          "Moody's" means Moody's Investors Service, Inc., or its successor.

          "Net Liquidation Proceeds" means, with respect to a Liquidated
Receivable, all amounts realized with respect to such Receivable (other than
amounts withdrawn or received from any Series Support) net of (i) reasonable
expenses incurred by the Master Servicer in connection with the collection of
such Receivable and the repossession and disposition of the Financed Vehicle and
(ii) amounts that are required to be refunded to the Obligor on such Receivable;
PROVIDED, HOWEVER, that the Net Liquidation Proceeds with respect to any
Receivable shall in no event be less than zero; PROVIDED, FURTHER, THAT, so long
as amounts are not traced to specific Receivables the Master Servicer shall
reasonably estimate, on or prior to each Accounting Date, the amount of Net
Liquidation Proceeds attributable to the Series Trust Estate.

          "Noteholder" means the Person in whose name a Note is registered on
the Note Register.

          "Note Policy" has the meaning assigned to such term in the Series
Supplement.

          "Note Purchase Agreement" has the meaning, if any, assigned to such
term in the Series Supplement.

                                       12
<Page>

          "Notes" has the meaning assigned to such term in the Indenture.

          "Obligor" on a Receivable means the purchaser or co-purchasers of the
Financed Vehicle and any other Person who owes payments under the Receivable.

          "Officers' Certificate" means a certificate signed by the chairman of
the board, the president, any executive vice president or any vice president,
any treasurer, assistant treasurer, secretary or assistant secretary of the
Seller or the Master Servicer, as appropriate.

          "Opinion of Counsel" means an opinion of counsel who may be counsel to
the Master Servicer or the Seller, acceptable to the Indenture Trustee and the
Insurer (for so long as it is the Controlling Party).

          "Other Conveyed Property" means all property conveyed by the Seller to
the Trust pursuant to Section 2.1(a)(ii) through (xii) of this Agreement.

          "Outstanding" has the meaning assigned to such term in the Indenture.

          "Outstanding Amount" has the meaning assigned to such term in the
Indenture.

          "Owner Trust Estate" has the meaning assigned to such term in the
Trust Agreement.

          "Owner Trustee" means the Person acting as Owner Trustee under the
Trust Agreement, its successors-in-interest or any successor Owner Trustee under
the Trust Agreement.

          "Payment Record" means the record maintained by the Master Servicer
for the Trust as provided in Section 4.2(f) hereof.

          "Person" means any individual, corporation, limited liability company,
estate, partnership, joint venture, association, joint stock company, trust
(including any beneficiary thereof), unincorporated organization or government
or any agency or political subdivision thereof.

          "Principal Balance" means, with respect to any Receivable, as of any
date, the Amount Financed minus (i) that portion of all amounts received on or
prior to such date and allocable to principal in accordance with the Actuarial
Method, or the Simple Interest Method, as appropriate and (ii) any Cram Down
Loss in respect of such Receivable. The "Principal Balance" of a Repurchased
Receivable or Liquidated Receivable shall be deemed to be zero.

          "Rating Agency" has the meaning assigned to such term in the Series
Supplement.

                                       13
<Page>

          "Receivables" has the meaning assigned to such term in the Series
Supplement.

          "Receivable Files" means the documents specified in Section 3.3.

          "Receivables Purchase Agreement Supplement" means any Receivables
Purchase Agreement Supplement to any Master Receivables Purchase Agreement.

          "Record Date" with respect to each Distribution Date means the
Business Day immediately preceding such Distribution Date, unless otherwise
specified in the Series Supplement.

          "Registrar of Titles" means, with respect to any state, the
governmental agency or body responsible for the registration of, and the
issuance of certificates of title relating to, motor vehicles and liens thereon.

          "Related Documents" has the meaning assigned to such term in the
Series Supplement.

          "Repurchase Amount" means, with respect to a Receivable, the Principal
Balance and all accrued and unpaid interest on the Receivable, after giving
effect to the receipt of any moneys collected (from whatever source) on such
Receivable, if any, as of the date of repurchase, provided that, reductions in
the Principal Balance resulting from such Receivable becoming a Liquidated
Receivable shall be disregarded.

          "Repurchased Receivable" means a Receivable purchased by the Master
Servicer pursuant to Section 4.7 or repurchased by the Seller pursuant to
Section 3.2 or the Master Servicer pursuant to Section 11.1(a).

          "Schedule of Eligibility Criteria" means the Schedule of Eligibility
Criteria attached as Schedule I to the Series Supplement.

          "Schedule of Receivables" has the meaning assigned to such term in the
Series Supplement.

          "Scheduled Payment" means, with respect to any Collection Period for
any Receivable, the amount set forth in such Receivable as required to be paid
by the Obligor in such Collection Period. If after the Closing Date, the
Obligor's obligation under a Receivable with respect to a Collection Period has
been modified so as to differ from the amount specified in such Receivable as a
result of (i) the order of a court in an insolvency proceeding involving the
Obligor, (ii) pursuant to the Soldiers' and Sailors' Civil Relief Act of 1940,
as amended, or (iii) modifications or extensions of the Receivable permitted by
Sections 4.2(b) and (c), the Scheduled Payment with respect to such Collection
Period shall refer to the Obligor's payment obligation with respect to such
Collection Period as so modified.

          "Secured Parties" has the meaning assigned to such term in the Series
Supplement.

                                       14
<Page>

          "Securities" means the Notes and the Certificates.

          "Securityholders" means the Noteholders and the Certificateholders.

          "Seller" means Household Auto Receivables Corporation, a Nevada
corporation, and its successors in interest to the extent permitted hereunder.

          "Series" means the Notes and Certificates issued pursuant to the
Series Supplement.

          "Series 2002-3 Notes" shall have the meaning assigned to such term in
the Series Supplement.

          "Series Supplement" means, the Series Supplement, dated as of the
Closing Date, to this Agreement, the Indenture and the Trust Agreement, among
the Master Servicer, the Issuer, the Seller, the Indenture Trustee and the Owner
Trustee, as such agreement may be amended or supplemented from time to time.

          "Series Support" means any such rights and benefits as specified in
the Series Supplement provided to the Indenture Trustee or the Noteholders of
any Class pursuant to any letter of credit, surety bond, cash collateral
account, spread account, reserve account, guaranteed rate agreement, maturity
liquidity facility, interest rate swap agreement, tax protection agreement or
other similar arrangement. The subordination of any Class to another Class shall
be deemed to be Series Support. Notwithstanding that such Series Support may be
held by or in favor of the Indenture Trustee for the benefit of any Class, only
those Class(es) to which such Series Support relates shall have any rights with
respect thereto and all payments thereunder received by the Indenture Trustee
shall be distributed exclusively as prescribed in the Series Supplement.

          "Series Trust Estate" has the meaning assigned to such term in the
Series Supplement.

          "Service Contract" means, with respect to a Financed Vehicle, the
agreement, if any, financed under the related Receivable that provides for the
repair of such Financed Vehicle.

          "Servicing Fee" has the meaning assigned to such term in the Series
Supplement.

          "Servicing Fee Rate" means the rate per annum specified in the Series
Supplement.

          "Simple Interest Method" means the method of allocating a fixed level
monthly payment on an obligation between principal and interest, pursuant to
which the portion of such payment that is allocated to interest is equal to the
product of (a) the fixed rate of interest on such obligation, (b) the period of
time (expressed as a fraction of a year, based on the actual number of days in
the calendar month and 365 or 360 days (as applicable in the underlying
document) in the calendar year) elapsed since the preceding

                                       15
<Page>

payment under the obligation was made and (c) the outstanding principal balance
of such obligation.

          "Simple Interest Receivable" means a Receivable under which the
portion of the payment allocable to interest and the portion allocable to
principal is determined in accordance with the Simple Interest Method.

          "Standard & Poor's" means Standard & Poor's Rating Services, a
division of The McGraw-Hill Companies, Inc., or its successor.

          "Subservicer" means, initially, Household Automotive Finance
Corporation, or any Eligible Subservicer with whom the Master Servicer has
entered into an agreement relating to subservicing the Receivables.

          "Successor Master Servicer" has the meaning assigned to such term in
Section 10.3(a).

          "Support Default" means a default relating to an Insolvency Event with
respect to, or the performance of, a Support Provider.

          "Support Provider" means the Person, if any, designated in the Series
Supplement, as providing any Series Support, other than Household Finance
Corporation or any of its Affiliates or the Noteholders of any Class which is
subordinated to any other Class.

          "Swap Provider" has the meaning assigned to such term in the Series
Supplement.

          "Transfer Agreement" means the agreement among the Issuer, the Seller,
the Master Servicer and the Indenture Trustee, substantially in the form of
Exhibit A.

          "Transfer Date" means, with respect to Receivables, any date on which
Receivables are to be transferred to the Trust pursuant to this Agreement and a
related Transfer Agreement.

          "Trust" means the Issuer.

          "Trust Account Property" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, book-entry securities, uncertificated securities or
otherwise), and all proceeds of the foregoing.

          "Trust Accounts" has the meaning assigned to such term in the Series
Supplement.

          "Trust Agreement" has the meaning assigned to such term in the Series
Supplement.

                                       16
<Page>

          "Trust Officer" means, (i) in the case of the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any President, Vice President, Assistant Vice President, Assistant Treasurer,
Assistant Secretary, Financial Services Officer or any other officer of the
Indenture Trustee, customarily performing functions similar to those performed
by any of the above designated officers and having direct responsibility for the
administration of the Indenture, and (ii) in the case of the Owner Trustee, any
officer in the corporate trust office of the Owner Trustee or any agent of the
Owner Trustee under a power of attorney with direct responsibility for the
administration of this Agreement or any of the Basic Documents or Related
Documents on behalf of the Owner Trustee.

          "UCC" means the Uniform Commercial Code as in effect in the relevant
jurisdiction on the date of this Agreement.

          SECTION 1.2.   OTHER INTERPRETIVE PROVISIONS. (a) Capitalized terms
used herein and not otherwise defined herein have the meanings assigned to them
in the Indenture, the Series Supplement or the Trust Agreement.

               (b)     All terms defined in this Agreement shall have the
defined meanings when used in any instrument governed hereby and in any
certificate or other document made or delivered pursuant hereto unless otherwise
defined therein.

               (c)     As used in this Agreement, in any instrument governed
hereby and in any certificate or other document made or delivered pursuant
hereto or thereto, accounting terms not defined in this Agreement or in any such
instrument, certificate or other document, and accounting terms partly defined
in this Agreement or in any such instrument, certificate or other document to
the extent not defined, shall have the respective meanings given to them under
generally accepted accounting principles as in effect on the date of this
Agreement or any such instrument, certificate or other document, as applicable.
To the extent that the definitions of accounting terms in this Agreement or in
any such instrument, certificate or other document are inconsistent with the
meanings of such terms under generally accepted accounting principles, the
definitions contained in this Agreement or in any such instrument, certificate
or other document shall control.

               (d)     Any agreement, instrument or statute defined or referred
to herein or in any instrument or certificate delivered in connection herewith
means such agreement, instrument or statute as from time to time amended,
modified or supplemented and includes (in the case of agreements or instruments)
references to all attachments thereto and instruments incorporated therein.

               (e)     Any term defined herein, which is otherwise defined in
the Series Supplement, shall have the meaning specified therefor in the Series
Supplement, whether or not the definition in this Agreement includes a phrase to
the effect that such term may be otherwise defined in the Series Supplement.

                                       17
<Page>

               (f)     In the event that with respect to the Series there is no
Support Provider, any references herein or in any other of the Basic Documents
to the consent of, or acceptability to, the Support Provider shall be deemed to
be deleted.

               (g)     In the event that with respect to the Series, the
Indenture and Series Supplement do not provide for the purchase by the
Noteholders of Additional Principal Amounts, any references herein or in any
other Basic Document to Additional Principal Amounts shall be deemed to be
deleted.

               (h)     In the event that with respect to the Series, the
Indenture and Series Supplement do not provide for an Administrative Agent or
any Managing Agent, any references herein or in any other Basic Document to an
Administrative Agent shall be deemed to be deleted.

          SECTION 1.3.   USAGE OF TERMS. With respect to all terms used in this
Agreement, the singular includes the plural and the plural includes the
singular; words importing any gender include the other gender; references to
"writing" include printing, typing, lithography, and other means of reproducing
words in a visible form; references to agreements and other contractual
instruments include all subsequent amendments thereto or changes therein entered
into in accordance with their respective terms and not prohibited by this
Agreement; references to Persons include their permitted successors and assigns;
the terms "include" or "including" mean "include without limitation" or
"including without limitation;" the words "herein", "hereof" and "hereunder" and
other words of similar import refer to this Agreement as a whole and not to any
particular Article, Section or other subdivision, and Article, Section, Schedule
and Exhibit references, unless otherwise specified, refer to Articles and
Sections of Schedules and Exhibits to this Agreement.

          SECTION 1.4.   CERTAIN REFERENCES. All references to the Principal
Balance of a Receivable as of any date of determination shall refer to the close
of business on such day, or as of the first day of an Interest Period shall
refer to the opening of business on such day. All references to the last day of
an Interest Period shall refer to the close of business on such day.

          SECTION 1.5.   NO RECOURSE. Without limiting the obligations of the
Master Servicer or Seller hereunder, no recourse may be taken, directly or
indirectly, under this Agreement or any certificate or other writing delivered
in connection herewith or therewith, against any stockholder, officer or
director, as such, of the Master Servicer or Seller, or of any of their
respective Affiliates, predecessors or successors.

          SECTION 1.6.   ACTION BY OR CONSENT OF NOTEHOLDERS. Whenever any
provision of this Agreement refers to action to be taken, or consented to, by
Noteholders, such provision shall be deemed to refer to the Noteholders of
record as of the Record Date immediately preceding the date on which such action
is to be taken, or consent given, by Noteholders. Solely for the purposes of any
action to be taken, or consented to, by Noteholders, any Note registered in the
name of HAFC or any Affiliate thereof shall be deemed not to be outstanding;
PROVIDED, HOWEVER, that, solely for the purpose of

                                       18
<Page>

determining whether the Indenture Trustee is entitled to rely upon any such
action or consent, only Notes which the Trust Officer of the Indenture Trustee
actually knows to be so owned shall be so disregarded.

                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES

          SECTION 2.1.   CONVEYANCE OF RECEIVABLES. (a) Subject to the
conditions set forth in paragraph (b) below, in consideration of the Issuer's
delivery to or upon the order of the Seller on a Transfer Date (which may
include the Closing Date) of the net proceeds of the issuance of Notes or from
any Additional Principal Amount thereunder and the other amounts to be
distributed from time to time to the Seller in accordance with the terms of this
Agreement and the Series Supplement, the Seller shall, from time to time, sell,
transfer, assign, set over and otherwise convey to the Issuer, without recourse
(subject to the obligations set forth herein), all right, title and interest of
the Seller in and to:

                       (i)    each and every Receivable listed on the Schedules
               of Receivables and all monies paid or payable thereon or in
               respect thereof after the related Cutoff Date (including amounts
               due on or before such Cutoff Date but received by HAFC or any
               Affiliate of HAFC that is a seller under a Master Receivables
               Purchase Agreement or the Seller after such Cutoff Date);

                       (ii)   the security interests in the related Financed
               Vehicles granted by Obligors pursuant to the related Receivables
               and any other interest of the Seller in such Financed Vehicles;

                       (iii)  all rights of the Seller against the Dealers
               pursuant to Dealer Agreements or Dealer Assignments related to
               such Receivables;

                       (iv)   any proceeds and the right to receive proceeds
               with respect to such Receivables repurchased by a Dealer pursuant
               to a Dealer Agreement;

                       (v)    all rights under any Service Contracts on the
               related Financed Vehicles;

                       (vi)   any proceeds and the right to receive proceeds
               with respect to such Receivables from claims on any physical
               damage, credit life or disability insurance policies covering the
               related Financed Vehicles or Obligors, including rebates of
               insurance premiums relating to the Receivables;

                                       19
<Page>

                       (vii)  all items contained in the related Receivables
               Files with respect to the Receivables; and any and all other
               documents that HAFC or any Affiliate of HAFC that is a seller
               under a Master Receivables Purchase Agreement, the Seller or the
               Master Servicer, as applicable, keeps on file in accordance with
               its customary procedures relating to the related Receivables, the
               Obligors or the Financed Vehicles;

                       (viii) all funds on deposit from time to time in the
               Trust Accounts (including all investments and proceeds thereof);

                       (ix)   all property (including the right to receive
               future Net Liquidation Proceeds) that secures a Receivable and
               that has been acquired by or on behalf of the Seller pursuant to
               liquidation of such Receivable;

                       (x)    all of the Seller's right, title and interest in
               its rights and benefits, but none of its obligations or burdens,
               under each of the Master Receivables Purchase Agreements and the
               Receivables Purchase Agreement Supplements, including the
               delivery requirements, representations and warranties and the
               cure and repurchase obligations of HAFC or any Affiliate of HAFC
               that is a seller under a Master Receivables Purchase Agreement or
               Household Finance Corporation, as applicable, under each of the
               Master Receivables Purchase Agreements and the related
               Receivables Purchase Agreement Supplements, after the related
               Cutoff Date;

                       (xi)   on the Closing Date, one share of Class SV
               Preferred Stock of the Seller together with the exclusive right
               to vote such share; and

                       (xii)  all present and future claims, demands, causes and
               choses in action in respect of any or all of the foregoing and
               all payments on or under and all proceeds of every kind and
               nature whatsoever in respect of any or all of the foregoing,
               including all proceeds of the conversion, voluntary or
               involuntary, into cash or other liquid property, all cash
               proceeds, accounts, accounts receivable, notes, drafts,
               acceptances, chattel paper, checks, investment property, deposit
               accounts, insurance proceeds, condemnation awards, rights to
               payment of any and every kind and other forms of obligations and
               receivables, instruments and other property which at any time
               constitute all or part of or are included in the proceeds of any
               of the foregoing.

               (b)     The Seller shall transfer to the Issuer the Receivables
and the other property and rights related thereto described in paragraph (a)
above only upon

                                       20
<Page>

the satisfaction of each of the following conditions on or prior to the related
Transfer Date:

                       (i)    if the Transfer Date is not also the Closing Date,
               the Seller shall have provided the Indenture Trustee, the Owner
               Trustee and the Insurer with an Addition Notice not later than
               five days prior to such Transfer Date and shall have provided any
               information reasonably requested by any of the foregoing with
               respect to the related Receivables;

                       (ii)   the Seller shall have delivered to the Owner
               Trustee a duly executed Transfer Agreement and to the Insurer a
               copy of such Transfer Agreement which shall include supplements
               to Schedule A (which may be in electronic format), listing the
               Receivables to be transferred to the Issuer;

                       (iii)  the Master Servicer, on behalf of the Issuer,
               shall have delivered to the Indenture Trustee and the Insurer a
               supplemental schedule to the Series Supplement (which may be in
               electronic format), listing the Receivables to be pledged to the
               Indenture Trustee under the Indenture;

                       (iv)   the Seller shall, to the extent required by
               Section 4.2, have deposited in the Collection Account all
               collections received after the related Cutoff Date in respect of
               the Receivables to be transferred;

                       (v)    as of each Transfer Date, (A) the Seller shall not
               be insolvent and shall not become insolvent as a result of the
               transfer of Receivables on such Transfer Date, (B) the Seller
               shall not intend to incur or believe that it shall incur debts
               that would be beyond its ability to pay as such debts mature, (C)
               such transfer shall not have been made with actual intent to
               hinder, delay or defraud any Person and (D) the assets of the
               Seller shall not constitute unreasonably small capital to carry
               out its business as conducted;

                       (vi)   each of the representations and warranties made by
               the Seller pursuant to Section 3.1 with respect to the
               Receivables to be transferred on such Transfer Date shall be true
               and correct as of the related Transfer Date, and the Seller shall
               have performed all obligations to be performed by it hereunder on
               or prior to such Transfer Date;

                       (vii)  the Seller shall, at its own expense, on or prior
               to the Transfer Date indicate in its computer files that the
               Receivables

                                       21
<Page>

               identified in the Transfer Agreement have been sold to the Trust
               pursuant to this Agreement;

                       (viii) the Seller shall have taken any action necessary
               or, if required by the Indenture Trustee or the Insurer (for so
               long as it is the Controlling Party), advisable to obtain and
               maintain the first priority perfected ownership interest of the
               Trust in the Owner Trust Estate;

                       (ix)   the Issuer shall have taken any action necessary
               or, if required by the Indenture Trustee or the Insurer (for so
               long as it is the Controlling Party), advisable to obtain and
               maintain the first priority perfected security interest of the
               Indenture Trustee, for the benefit of the Noteholders and the
               Insurer, in the Series Trust Estate;

                       (x)    no selection procedures adverse to the interests
               of the Noteholders or any Support Provider shall have been
               utilized in selecting the related Receivables;

                       (xi)   the addition of any such Receivables shall not
               result in a material adverse tax consequence to the Trust or the
               Noteholders;

                       (xii)  if required by any of the Related Documents, the
               Issuer shall simultaneously transfer to the Indenture Trustee any
               amounts required to be deposited in the related Trust Accounts
               with respect to the Receivables transferred on such Transfer
               Date; and

                       (xiii) the Seller shall have delivered to the Indenture
               Trustee and the Insurer an Officers' Certificate confirming the
               satisfaction of each condition precedent specified in this
               paragraph (b).

          The Seller covenants that in the event any of the foregoing conditions
precedent are not satisfied with respect to any Receivable on the date required
as specified above, the Seller will immediately repurchase such Receivable from
the Trust, at a price equal to the Repurchase Amount thereof, in the manner
specified in Section 5.4.

          It is the intention of the Seller that the transfer and assignment
contemplated by this Agreement and each related Transfer Agreement shall
constitute a sale of the related Receivables and the related Other Conveyed
Property from the Seller to the Issuer and the beneficial interest in and title
to such property shall not be part of the Seller's estate in the event of the
filing of a bankruptcy petition by or against the Seller under any bankruptcy
law. In the event that, notwithstanding the intent of the Seller, the transfer
and assignment contemplated hereby and thereby is held not to be a sale, this

                                       22
<Page>

Agreement and the related Transfer Agreement shall constitute a Grant of a
security interest in the property referred to in this Section 2.1 to the Issuer.

               (c)     Notwithstanding the provisions of this Section 2.1 and
any other provisions of any Transaction Document that purport to allow multiple
conveyances of Receivable from the Seller to the Issuer, the parties hereto
agree that, other than the conveyance of the Receivables on the Closing Date,
the Seller shall not convey any Receivables to the Trust pursuant to this
Agreement or any Transfer Agreement without the prior written consent of the
Insurer.

          SECTION 2.2.   FURTHER ENCUMBRANCE OF OWNER TRUST ESTATE. (a)
Immediately upon the conveyance to the Trust by the Seller of Receivables and
the related Other Conveyed Property pursuant to Section 2.1, all right, title
and interest of the Seller in and to such Receivables and such Other Conveyed
Property shall terminate, and all such right, title and interest shall vest in
the Issuer, in accordance with the Trust Agreement and Sections 3802 and 3805 of
the Statutory Trust Statute (as defined in the Trust Agreement).

               (b)     Immediately upon the vesting of any Receivables and the
related Other Conveyed Property, the Trust shall have the sole right to pledge
or otherwise encumber such property subject to the terms of the Basic Documents.
Pursuant to the Indenture and the Series Supplement, the Trust will grant a
security interest in the Series Trust Estate to secure the repayment of the
Notes and amounts owing to the Insurer under the Insurance Agreement and the
Basic Documents. The Certificates shall represent the beneficial ownership
interest in the Receivables and the Other Conveyed Property, and the
Certificateholders shall be entitled to receive distributions with respect
thereto as set forth in the Series Supplement.

               (c)     The Indenture Trustee shall hold the Series Trust Estate
for the benefit of the Secured Parties. Following the payment in full of the
Notes and all amounts owing to the Insurer under the Insurance Agreement and the
Basic Documents and the release and discharge of the Indenture and the Series
Supplement, all covenants of the Issuer under Article III of the Indenture and
the Series Supplement shall, until payment in full of the Certificates, remain
as covenants of the Issuer for the benefit of the Certificateholders,
enforceable by the Certificateholders to the same extent as such covenants were
enforceable by the Secured Parties prior to the discharge of the Indenture. Any
rights of the Indenture Trustee under Article III of the Indenture and the
Series Supplement, following the discharge of the Indenture and the Series
Supplement, shall vest in the Certificateholders.

               (d)     The Indenture Trustee shall, at such time as there are no
Securities outstanding and all amounts owing to the Insurer under the Insurance
Agreement and the Basic Documents and all sums due to the Indenture Trustee or
any agent or counsel thereof pursuant to the Indenture as supplemented by the
Series Supplement, have been paid, pursuant to Section 4.1 of the Indenture, and
subject to satisfaction of the conditions set forth therein, release the Lien of
the Series Supplement and the Indenture with respect to the Series Trust Estate.

                                       23
<Page>

                                   ARTICLE III

                                 THE RECEIVABLES

          SECTION 3.1.   REPRESENTATIONS AND WARRANTIES OF SELLER. The Seller
represents and warrants as to the related Receivables that the representations
and warranties set forth on the Schedule of Eligibility Criteria are, or will
be, true and correct as of the respective dates specified in such Schedule. The
Issuer is deemed to have relied on such representations and warranties in
acquiring the related Receivables, the Insurer is deemed to have relied on such
representations and warranties in issuing the Note Policy and the related
Securityholders shall be deemed to rely on such representations and warranties
in purchasing the Notes and Certificates or any Additional Principal Amounts
thereunder. Such representations and warranties shall survive the sale, transfer
and assignment of the Owner Trust Estate to the Issuer and any pledge of the
Series Trust Estate to the Indenture Trustee pursuant to the Indenture and the
Series Supplement.

          SECTION 3.2.   REPURCHASE UPON BREACH. (a) The Seller, the Master
Servicer, the Insurer, any Trust Officer of the Indenture Trustee, or the Owner
Trustee, as the case may be, shall inform each of the other parties to this
Agreement promptly, in writing, upon the discovery of any breach of the Seller's
representations and warranties made pursuant to Section 3.1; PROVIDED, HOWEVER,
that the failure to give any such notice shall not derogate from any obligations
of the Seller under this Section 3.2. As of the last day of the second (or, if
the Seller so elects, the first, or with respect to any exceptions appearing on
any exception report delivered by the Indenture Trustee, the first) month
following the discovery by the Seller or receipt by the Seller of notice of such
breach (or such longer period not in excess of 120 days, as may be agreed upon
by the Indenture Trustee, the Insurer (for so long as it is the Controlling
Party) and the Master Servicer), unless such breach is cured by such date, the
Seller shall have an obligation to repurchase or cause HAFC or an Affiliate of
HAFC that is the seller under a Master Receivables Purchase Agreement or
Household Finance Corporation, as applicable, to repurchase any Receivable in
which the interests of the Securityholders and/or the Insurer are materially and
adversely affected by any such breach. In consideration of and simultaneously
with the repurchase of the Receivables, the Seller shall remit, or cause HAFC or
an Affiliate of HAFC that is the seller under a Master Receivables Purchase
Agreement or Household Finance Corporation, as applicable, to remit, to the
Collection Account the Repurchase Amount in the manner specified in Section 5.4
and the Issuer shall execute such assignments and other documents reasonably
requested by such person in order to effect such repurchase. The sole remedy of
the Issuer, the Owner Trustee, the Indenture Trustee, the Insurer and the
related holders with respect to a breach of representations and warranties
pursuant to Section 3.1 and the agreement contained in this Section shall be the
repurchase of the Receivables pursuant to this Section, subject to the
conditions contained herein or to enforce the obligation of HAFC or an Affiliate
of HAFC that is the seller under a Master Receivables Purchase Agreement or
Household Finance Corporation, as applicable, to the Seller to repurchase such
Receivables pursuant to the related Master Receivables Purchase Agreement.
Neither the Owner Trustee nor the Indenture Trustee shall have a duty to conduct
any affirmative investigation as to the

                                       24
<Page>

occurrence of any conditions requiring the repurchase of any Receivable pursuant
to this Section.

               (b)     Pursuant to Section 2.1 of this Agreement and pursuant to
the related Transfer Agreement, the Seller conveyed to the Trust all of the
Seller's right, title and interest in its rights and benefits, but none of its
obligations or burdens, under the Master Receivables Purchase Agreements and the
related Master Receivables Purchase Agreement Supplements, including the
Seller's rights under the Master Receivables Purchase Agreements and the
delivery requirements, representations and warranties and the cure or repurchase
obligations of HAFC or an Affiliate of HAFC that is the seller under a Master
Receivables Purchase Agreement or Household Finance Corporation, as applicable,
thereunder. The Seller hereby represents and warrants to the Trust that such
assignment is valid, enforceable and effective to permit the Trust to enforce
such obligations of HAFC or an Affiliate of HAFC that is the seller under a
Master Receivables Purchase Agreement and Household Finance Corporation under
the Master Receivables Purchase Agreements.

          SECTION 3.3.   CUSTODY OF RECEIVABLES FILES. In connection with the
sale, transfer and assignment of the Receivables to the Trust pursuant to this
Agreement and pursuant to the related Transfer Agreement, the Master Servicer
shall act as custodian for the benefit of the Indenture Trustee of the following
documents or instruments with respect to each Receivable:

                       (i)    The fully executed original of the Receivable
               (together with any agreements modifying the Receivable,
               including, without limitation, any extension agreements);

                       (ii)   The original credit application, or a copy
               thereof, of each Obligor, fully executed by each such Obligor on
               the customary form used by HAFC, an Affiliate of HAFC, or the
               related Dealer, as applicable, or on a form approved by HAFC or
               an Affiliate of HAFC, as applicable, for such application; and

                       (iii)  The original certificate of title (when received)
               and otherwise such documents, if any, that HAFC or any Affiliate
               of HAFC that is the seller under a Master Receivables Purchase
               Agreement, as applicable, keeps on file in accordance with its
               customary procedures indicating that the Financed Vehicle is
               owned by the Obligor and subject to the interest of HAFC or any
               Affiliate of HAFC that is the seller under a Master Receivables
               Purchase Agreement as first lienholder or secured party
               (including any Lien Certificate received by HAFC or any Affiliate
               of HAFC that is the seller under a Master Receivables Purchase
               Agreement, as applicable), or, if such original certificate of
               title has not yet been received, a copy of the application
               therefor, showing any of HAFC, any Affiliate of HAFC that is a
               seller under a Master Receivables Purchase Agreement or a Dealer
               as secured party (in

                                       25
<Page>

               the case of a Dealer, the application shall be to obtain title in
               the name of HAFC or any Affiliate of HAFC that is a seller under
               a Master Receivables Purchase Agreement); and

                       (iv)   Documents evidencing or relating to any Insurance
               Policy, to the extent such documents are maintained by or on
               behalf of the Seller, HAFC or any Affiliate of HAFC that is a
               seller under a Master Receivables Purchase Agreement.

Notwithstanding the foregoing, the Master Servicer may appoint a subcustodian,
which subcustodian may hold physical possession of some or all of the Receivable
Files. The Indenture Trustee shall have no liability for the acts or omissions
of any such custodian or subcustodian.

                                   ARTICLE IV

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

          SECTION 4.1.   DUTIES OF THE MASTER SERVICER. The Master Servicer is
hereby authorized to act as agent for the Trust (and also on behalf of the
Indenture Trustee, the Noteholders and the Insurer) and in such capacity shall
manage, service, administer and make collections on the Receivables, and perform
the other actions required by the Master Servicer under this Agreement, the
Indenture and the Series Supplement. The Master Servicer agrees that its
servicing of the Receivables shall be carried out in accordance with customary
and usual procedures of institutions which service motor vehicle retail
installment sales contracts and, to the extent more exacting, the degree of
skill and attention that the Master Servicer exercises with respect to all
comparable motor vehicle receivables that it services for itself or others. In
performing such duties, so long as Household Finance Corporation is the Master
Servicer, it shall comply with the standard and customary procedures for
servicing all of its comparable motor vehicle receivables. The Master Servicer's
duties shall include, without limitation, collection and posting of all
payments, responding to inquiries of Obligors on the Receivables, investigating
delinquencies, sending monthly billing statements to Obligors, reporting any
required tax information to Obligors, monitoring the collateral, accounting for
collections and furnishing monthly and annual statements to the Indenture
Trustee, the Noteholders and the Insurer with respect to distributions,
monitoring the status of Insurance Policies with respect to the Financed
Vehicles and performing the other duties specified herein. The Master Servicer
shall also administer and enforce all rights and responsibilities of the holder
of the Receivables provided for in the Dealer Agreements (and Household Finance
Corporation shall make commercially reasonable efforts to obtain possession of
the Dealer Agreements, to the extent it is necessary to do so), the Dealer
Assignments, the Master Receivables Purchase Agreements, and the Insurance
Policies, to the extent that such Dealer Agreements, Dealer Assignments, the
Master Receivables Purchase Agreements, and Insurance Policies relate to the
Receivables, the Financed Vehicles or the Obligors. To the extent consistent
with the standards, policies and procedures otherwise required hereby, the
Master Servicer shall follow its customary standards, policies, and procedures
and shall have full power and authority, acting alone,

                                       26
<Page>

to do any and all things in connection with such managing, servicing,
administration and collection that it may deem necessary or desirable. In
performing such duties, the Master Servicer or any Subservicer may delegate
their duties in accordance with Section 9.5 hereof. Without limiting the
generality of the foregoing, the Master Servicer is hereby authorized and
empowered by the Trust to execute and deliver, on behalf of the Trust, any and
all instruments of satisfaction or cancellation, or of partial or full release
or discharge, and all other comparable instruments, with respect to the
Receivables and with respect to the Financed Vehicles. The Master Servicer is
hereby authorized to commence, in it's own name or in the name of the Trust, a
legal proceeding to enforce a Receivable pursuant to Section 4.3 or to commence
or participate in any other legal proceeding (including, without limitation, a
bankruptcy proceeding) relating to or involving a Receivable, an Obligor or a
Financed Vehicle. If the Master Servicer commences or participates in such a
legal proceeding in its own name, the Trust shall thereupon be deemed to have
automatically assigned such Receivable to the Master Servicer solely for
purposes of commencing or participating in any such proceeding as a party or
claimant, and the Master Servicer is authorized and empowered by the Trust to
execute and deliver in the Master Servicer's name any notices, demands, claims,
complaints, responses, affidavits or other documents or instruments in
connection with any such proceeding. The Indenture Trustee and the Owner Trustee
shall furnish the Master Servicer with any powers of attorney and other
documents which the Master Servicer may reasonably request and which the Master
Servicer deems necessary or appropriate and take any other steps which the
Master Servicer may deem reasonably necessary or appropriate to enable the
Master Servicer to carry out its servicing and administrative duties under this
Agreement.

          SECTION 4.2.   COLLECTION OF RECEIVABLE PAYMENTS; MODIFICATIONS OF
RECEIVABLES. (a) Consistent with the standards, policies and procedures
required by this Agreement, the Master Servicer shall make reasonable efforts to
collect all payments called for under the terms and provisions of the
Receivables as and when the same shall become due, and shall follow such
collection procedures as it follows with respect to all comparable motor vehicle
receivables that it services for itself or others and otherwise act with respect
to the Receivables, the Dealer Agreements, the Dealer Assignments, the Master
Receivables Purchase Agreements, the Insurance Policies and the Other Conveyed
Property in such manner as will, in the reasonable judgment of the Master
Servicer, maximize the amount to be received by the Trust with respect thereto.
Consistent with the foregoing, the Master Servicer may, if it determines in its
reasonable judgment that such action would maximize the amount to be received by
the Trust, arrange for the sale by the Trust of Liquidated Receivables with
respect to which the related Financed Vehicle has been sold, and the net
proceeds of such sale shall be included in Net Liquidation Proceeds. The Master
Servicer is authorized in its discretion to waive any prepayment charge, late
payment charge or any other similar fees that may be collected in the ordinary
course of servicing any Receivable.

               (b)     The Master Servicer may at any time agree to a
modification or amendment of a Receivable in order to (i) change the Obligor's
regular due date to a date within 30 days of when such due date occurs;
PROVIDED, HOWEVER, that no modification of a Receivable in connection with a due
date change pursuant to this

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<Page>

clause (i) shall be considered an extension for purposes of Section 4.2(c) below
and therefore shall not be subject to the restrictions on extensions,
modifications or amendments specified in Section 4.2(c) below or (ii)
re-amortize the Scheduled Payments on the Receivable following a partial
prepayment of principal; PROVIDED, HOWEVER, that no re-amortization permitted by
this clause (ii) shall extend the maturity date of any Receivable.

               (c)     The Master Servicer may grant payment extensions on, or
other modifications or amendments to, a Receivable in accordance with its
customary procedures if the Master Servicer believes in good faith that such
extension, modification or amendment is necessary to avoid a default on such
Receivable, will maximize the amount to be received with respect to such
Receivable, and is otherwise in the best interests of the Trust; PROVIDED,
HOWEVER, that unless otherwise specified in the Series Supplement:

                       (i)    The aggregate period of all extensions on a
               Receivable shall not exceed six months; PROVIDED, HOWEVER, that
               not more than three months can be in any consecutive twelve month
               period;

                       (ii)   In no event may a Receivable be extended by the
               Master Servicer beyond the Collection Period immediately
               preceding the Final Scheduled Distribution Date of the Notes;

                       (iii)  The average Monthly Extension Rate for any three
               consecutive calendar months shall not exceed 4%; and

                       (iv)   Not more than 5% of the Pool Balance may be
               subject to a modified interest rate at any time (exclusive of
               Cram Down Losses).

               (d)     Except as otherwise provided below in Section 4.2(e)
hereof, the Master Servicer shall deposit collections in immediately available
funds on or with respect to Receivables into the Collection Account as promptly
as possible after the date of processing of such collections, but in no event
later than the second Business Day following the date of processing.

               (e)     Subject to the express terms of the Series Supplement,
but notwithstanding anything else in this Agreement to the contrary, for so long
as (i) Household Finance Corporation remains the Master Servicer and maintains a
commercial paper rating of not less than A-1 by Standard & Poor's, P-1 by
Moody's and F1 by Fitch (or such other rating as shall be satisfactory to such
Rating Agency and the Insurer (for so long as it is the Controlling Party)), in
each case only if such Person is a Rating Agency, and for five Business Days
following any reduction of any such rating or (ii) a Master Servicer Credit
Facility is maintained in effect by the Master Servicer in form and substance
acceptable to the Rating Agency (such acceptability to be evidenced in writing
by the Rating Agency to the effect that failure to make the aforementioned
deposit on the

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<Page>

basis of the maintenance of the Master Servicer Credit Facility will not
adversely affect the then current rating of the Notes) and the Insurer (for so
long as it is the Controlling Party) issued by a depository institution or
insurance company having a rating on its (A) short-term obligations of at least
P-1 by Moody's, A-1 by Standard & Poor's and F1 by Fitch (or such other rating
as shall be satisfactory to such Rating Agency and the Insurer (for so long as
it is the Controlling Party)), in each case only if such Person is a Rating
Agency, and (B) long term obligations of at least A2 by Moody's, A by Standard &
Poor's, and A by Fitch, in each case only if such Person is a Rating Agency, the
Master Servicer shall not be required to make deposits of collections on or with
respect to Receivables as provided in Section 4.2(d), but may make one or more
deposits of Collected Funds (excluding any portion of such funds which the
Master Servicer may retain in accordance with Section 4.8 or pay directly to the
Seller in its capacity as Certificateholder in accordance with Section 5.1(f))
with respect to the Series Trust Estate with respect to a Collection Period into
the Collection Account in immediately available funds not later than 1:00 P.M.,
Central time, on the Business Day immediately preceding the related Distribution
Date. The Master Servicer shall give written notice to the Indenture Trustee and
the Insurer if it is required to deposit funds in accordance with Section
4.2(d).

               (f)     In the event that a Master Servicer Credit Facility is
maintained, the Master Servicer shall within two Business Days of the date of
processing of collections on or with respect to Receivables notify the Indenture
Trustee and the Master Servicer Credit Facility Issuer in writing of the amounts
that would otherwise be deposited in the Collection Account and the Master
Servicer shall establish and maintain for the Trust a Payment Record in which
the payments on or with respect to the Receivables shall be credited and the
Master Servicer shall notify the Indenture Trustee, the Insurer and the Master
Servicer Credit Facility Issuer in writing as promptly as practicable (but in
any event prior to the Determination Date for the following Distribution Date)
of the amounts so credited on or with respect to the Receivables that are to be
included in Collected Funds (as determined for this purpose after giving effect
to the exclusions described above) for the related Distribution Date and of the
amounts so credited which will constitute a part of Collected Funds (as
determined for this purpose after giving effect to the exclusions described
above) for the second following Distribution Date. The Payment Record shall be
made available for inspection during normal business hours of the Master
Servicer upon request of the Indenture Trustee, the Insurer (for so long as it
is the Controlling Party) or any Master Servicer Credit Facility Issuer.

          SECTION 4.3.   REALIZATION UPON RECEIVABLES. (a) Consistent with the
standards, policies and procedures required by this Agreement, the Master
Servicer shall use its best efforts to repossess (or otherwise comparably
convert the ownership of) and liquidate any Financed Vehicle securing a
Receivable with respect to which the Master Servicer has determined that
payments thereunder are not likely to be resumed, as soon as is practicable
after default on such Receivable but in no event later than the date on which
10% or more of a Scheduled Payment has become 150 days delinquent (other than in
the case of Financed Vehicles where neither the Financed Vehicle nor the Obligor
can be physically located by the Master Servicer (using procedures consistent
with the standards,

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<Page>

policies and procedures of the Master Servicer required by this Agreement) and
other than in the case of an Obligor who is subject to a bankruptcy proceeding);
PROVIDED, HOWEVER, that the Master Servicer may elect not to repossess a
Financed Vehicle within such time period if in its good faith judgment it
determines that the proceeds ultimately recoverable with respect to such
Receivable would be increased by forbearance. The Master Servicer is authorized
to follow such customary practices and procedures as it shall deem necessary or
advisable, consistent with the standard of care required by Section 4.1, which
practices and procedures may include reasonable efforts to realize upon any
recourse to Dealers, the sale of the related Financed Vehicle at public or
private sale, the submission of claims under an Insurance Policy and other
actions, including, without limitation, entering into settlements with Obligors,
by the Master Servicer in order to realize upon such a Receivable. The foregoing
is subject to the provision that, in any case in which the Financed Vehicle
shall have suffered damage, the Master Servicer shall not expend funds in
connection with any repair or towards the repossession of such Financed Vehicle
unless it shall determine in its discretion that such repair and/or repossession
shall increase the proceeds of liquidation of the related Receivable by an
amount greater than the amount of such expenses. The Master Servicer shall be
entitled to recover all reasonable expenses incurred by it in the course of
repossessing and liquidating a Financed Vehicle but only from the liquidation
proceeds of the vehicle or under the related Dealer Agreement. The Master
Servicer shall pay on behalf of the Trust any personal property taxes assessed
on repossessed Financed Vehicles. The Master Servicer shall be entitled to
reimbursement of any such tax from Net Liquidation Proceeds with respect to such
Receivable.

               (b)     If the Master Servicer elects to commence a legal
proceeding to enforce a Dealer Agreement or Dealer Assignment, the act of
commencement shall be deemed to be an automatic assignment from the Trust to the
Master Servicer of the rights under such Dealer Agreement and Dealer Assignment
for purposes of collection only. If, HOWEVER, in any enforcement suit or legal
proceeding it is held that the Master Servicer may not enforce a Dealer
Agreement or Dealer Assignment on the grounds that it is not a real party in
interest or a Person entitled to enforce the Dealer Agreement or Dealer
Assignment, the Indenture Trustee, at the Master Servicer's written direction
and expense, or the Seller, at the Seller's expense, shall take such steps as
the Master Servicer deems reasonably necessary to enforce the Dealer Agreement
or Dealer Assignment, including bringing suit in its name or the name of the
Seller, the Trust or the Owner Trustee. All amounts recovered shall be remitted
directly by the Master Servicer as provided in Section 4.2(d) or 4.2(e), as
applicable.

          SECTION 4.4.   INSURANCE. (a) The Master Servicer shall require, in
accordance with its customary servicing policies and procedures, that each
Financed Vehicle be insured by the related Obligor under an insurance policy
covering physical loss and damage to the related Financed Vehicle and shall
monitor the status of such physical loss and damage insurance coverage
thereafter, in accordance with its customary servicing procedures. Each
Receivable requires the Obligor to obtain such physical loss and damage
insurance, naming HAFC or any Affiliate of HAFC that is the seller under a
Master Receivables Purchase Agreement, as applicable, and its successors and
assigns as loss payee, and with respect to liability coverage, additional
insureds, and permits the

                                       30
<Page>

holder of such Receivable to obtain physical loss and damage insurance at the
expense of the Obligor if the Obligor fails to maintain such insurance. If the
Master Servicer shall determine that an Obligor has failed to obtain or maintain
a physical loss and damage Insurance Policy covering the related Financed
Vehicle which satisfies the conditions set forth in the related Eligibility
Criteria (including, without limitation, during the repossession of such
Financed Vehicle) the Master Servicer shall be diligent in carrying out its
customary servicing procedures to enforce the rights of the holder of the
Receivable under the Receivable to require the Obligor to obtain such physical
loss and damage insurance in accordance with its customary servicing policies
and procedures.

               (b)     The Master Servicer may sue to enforce or collect upon
the Insurance Policies, in its own name, if possible, or as agent of the Trust.
If the Master Servicer elects to commence a legal proceeding to enforce an
Insurance Policy, the act of commencement shall be deemed to be an automatic
assignment of the rights of the Trust under such Insurance Policy to the Master
Servicer for purposes of collection only. If, HOWEVER, in any enforcement suit
or legal proceeding it is held that the Master Servicer may not enforce an
Insurance Policy on the grounds that it is not a real party in interest or a
holder entitled to enforce the Insurance Policy, the Indenture Trustee, at the
Master Servicer's written direction and expense, or the Seller, at the Seller's
expense, shall take such steps as the Master Servicer deems reasonably necessary
to enforce such Insurance Policy, including bringing suit in its name or the
name of the Trust or the Owner Trustee.

          SECTION 4.5.   MAINTENANCE OF SECURITY INTERESTS IN VEHICLES.
Consistent with the policies and procedures required by this Agreement, the
Master Servicer shall take such steps on behalf of the Trust as are necessary to
maintain perfection of the security interest created by each Receivable in the
related Financed Vehicle on behalf of the Trust or as the Indenture Trustee or
the Insurer (for so long as it is the Controlling Party) shall reasonably
request, including, but not limited to, obtaining the execution by the Obligors
and the recording, registering, filing, re-recording, re-filing, and
re-registering of all security agreements, financing statements and continuation
statements as are necessary to maintain the security interest granted by the
Obligors under the respective Receivables. The Owner Trustee, on behalf of the
Trust, hereby authorizes the Master Servicer, and the Master Servicer agrees, to
take any and all steps necessary to re-perfect such security interest on behalf
of the Trust as necessary because of the relocation of a Financed Vehicle or for
any other reason. In the event that the assignment of a Receivable to the Trust
is insufficient, without a notation on the related Financed Vehicle's
certificate of title, or without fulfilling any additional administrative
requirements under the laws of the state in which the Financed Vehicle is
located, to perfect a security interest in the related Financed Vehicle in favor
of the Trust, the Seller hereby agrees to cause HAFC or any Affiliate of HAFC
that is the seller under a Master Receivables Purchase Agreement, as applicable,
to treat the designation of HAFC or any Affiliate of HAFC that is the seller
under a Master Receivables Purchase Agreement, as applicable, as the secured
party on the certificate of title as a designation in its capacity as agent of
the Trust for such limited purpose.

          SECTION 4.6.   COVENANTS, REPRESENTATIONS, AND WARRANTIES OF MASTER
SERVICER. By its execution and delivery of this Agreement, the Master Servicer
makes the

                                       31
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following representations, warranties and covenants on which the Issuer relies
in accepting the Receivables, on which the Indenture Trustee relies in
authenticating the Notes, on which the Noteholders rely in purchasing the Notes
and any Additional Principal Amount thereunder, on which the Owner Trustee
relies in executing the Certificates and on which the Insurer relies in issuing
the Note Policy.

          The Master Servicer covenants as follows:

                       (i)    LIENS IN FORCE. The Financed Vehicle securing each
               Receivable shall not be released in whole or in part from the
               security interest granted by the Receivable, except upon payment
               in full of the Receivable or as otherwise contemplated herein;

                       (ii)   NO IMPAIRMENT. The Master Servicer shall do
               nothing to impair the rights of the Trust, the Insurer or the
               Noteholders in the Receivables, the Dealer Agreements, the Dealer
               Assignments, the Master Receivables Purchase Agreements, the
               Insurance Policies or the Other Conveyed Property;

                       (iii)  NO AMENDMENTS. The Master Servicer shall not
               extend or otherwise amend the terms of any Receivable, except in
               accordance with Section 4.2;

                       (iv)   RESTRICTIONS ON LIENS. The Master Servicer shall
               not (i) create, incur or suffer to exist, or agree to create,
               incur or suffer to exist, or consent to cause or permit in the
               future (upon the happening of a contingency or otherwise) the
               creation, incurrence or existence of any Lien or restriction on
               transferability of the Receivables except for the Lien in favor
               of the Indenture Trustee for the benefit of the Secured Parties,
               and the restrictions on transferability imposed by this Agreement
               or (ii) sign or file under the Uniform Commercial Code of any
               jurisdiction any financing statement which names HAFC, the Master
               Servicer or any Affiliate thereof as a debtor, or sign any
               security agreement authorizing any secured party thereunder to
               file such financing statement, with respect to the Receivables,
               except in each case any such instrument solely securing the
               rights and preserving the Lien in favor of the Indenture Trustee
               for the benefit of the Secured Parties;

                       (v)    SERVICING OF RECEIVABLES. The Master Servicer
               shall service the Receivables as required by the terms of this
               Agreement and in material compliance with its standard and
               customary procedures for servicing all its other comparable motor
               vehicle receivables and in compliance with applicable law; and

                       (vi)   RELOCATIONS OF PRINCIPAL OFFICE. The Master
               Servicer shall notify in writing the Indenture Trustee and the

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<Page>

               Insurer of any relocation of the Master Servicer's principal
               office set forth in Section 13.3 hereof and all Receivables Files
               shall be maintained by the Master Servicer in the United States.

          SECTION 4.7.   REPURCHASE OF RECEIVABLES UPON BREACH OF COVENANT. Upon
discovery by any of the Master Servicer, the Seller, the Insurer, a Trust
Officer of the Owner Trustee or a Trust Officer of the Indenture Trustee of a
breach of any of the covenants set forth in Sections 4.5 or 4.6, the party
discovering such breach shall give prompt written notice to the others;
PROVIDED, HOWEVER, that the failure to give any such notice shall not affect any
obligation of the Master Servicer under this Section 4.7. As of the second
Accounting Date following its discovery or receipt of notice of any breach of
any covenant set forth in Sections 4.5 or 4.6 which materially and adversely
affects the interests of the Securityholders or the Insurer in any Receivable
(including any Liquidated Receivable) or the related Financed Vehicle (or, if
such second Accounting Date is more than 45 days after discovery or receipt by
the Master Servicer of notice of such breach, then the first Accounting Date so
following), the Master Servicer shall, unless such breach shall have been cured
in all material respects, repurchase from the Trust the Receivable affected by
such breach and, on the date specified in Section 5.4, the Master Servicer shall
pay the related Repurchase Amount and deposit such Repurchase Amounts into the
Collection Account. It is understood and agreed that the obligation of the
Master Servicer to repurchase any Receivable (including any Liquidated
Receivable) with respect to which such a breach has occurred and is continuing
shall, if such obligation is fulfilled, constitute the sole remedy against the
Master Servicer for such breach.

          SECTION 4.8.   TOTAL SERVICING FEE; PAYMENT OF CERTAIN EXPENSES BY
MASTER SERVICER. So as long as: (i) Household Finance Corporation is the Master
Servicer, (ii) the Master Servicer is permitted to make deposits of collections
in accordance with Section 4.2(e) hereof and (iii) the Master Servicer's
Certificate delivered with respect to such Distribution Date indicates that
Available Funds with respect to such Distribution Date are sufficient to make
the distributions required to be made on such Distribution Date in respect of
the Servicing Fee payable to Household Finance Corporation as Master Servicer
(and all other distributions required to be made on such Distribution Date
having a higher priority than the distribution of the Servicing Fee payable to
Household Finance Corporation as Master Servicer), the Master Servicer shall be
entitled to retain out of amounts otherwise to be deposited in the Collection
Account with respect to a Collection Period, the Servicing Fee payable to
Household Finance Corporation as Master Servicer for such Collection Period. The
Master Servicer shall be required to pay all expenses incurred by it in
connection with its activities under this Agreement (including taxes imposed on
the Master Servicer, expenses incurred in connection with distributions and
reports made by the Master Servicer to Securityholders, all fees and expenses of
the Owner Trustee or the Indenture Trustee), except taxes levied or assessed
against the Trust, and claims against the Trust in respect of indemnification,
which taxes and claims in respect of indemnification against the Trust are
expressly stated to be for the account of Household Finance Corporation. The
Master Servicer shall be liable for the fees, charges and expenses of the Owner
Trustee, the Indenture Trustee, any Subservicer and their respective agents.

                                       33
<Page>

          SECTION 4.9.   MASTER SERVICER'S CERTIFICATE. No later than 10:00 a.m.
Central time on each Determination Date, the Master Servicer shall deliver, and
cause to be delivered via access to its or its Affiliate's web-site address, to
the Insurer, the Swap Provider, the Indenture Trustee and the Owner Trustee, a
Master Servicer's Certificate executed by a responsible officer or agent of the
Master Servicer containing among other things, all information necessary to
enable the Indenture Trustee to give any notice required by Section 3.03(c) of
the Series Supplement and make the distributions with respect to the related
Distribution Date pursuant to the Series Supplement. In addition to the
information set forth in the preceding sentence, the Master Servicer's
Certificate shall also contain the information required by the Series
Supplement.

          SECTION 4.10.  ANNUAL STATEMENT AS TO COMPLIANCE, NOTICE OF MASTER
SERVICER TERMINATION EVENT. (a) The Master Servicer shall deliver or cause
to be delivered to the Insurer, the Indenture Trustee and the Owner Trustee on
or before April 30 (or 120 days after the end of the Master Servicer's fiscal
year, if other than December 31) of each year, beginning on April 30 in calendar
year 2004, an Officer's Certificate signed by any responsible officer of the
Master Servicer, or such Eligible Subservicer who is performing the servicing
duties of the Master Servicer, dated as of December 31 (or other applicable
date) of the immediately preceding year, stating that (i) a review of the
activities of the Master Servicer, or such Eligible Subservicer who is
performing the servicing duties of the Master Servicer, during the preceding
12-month period (or such longer period since the Closing Date) and of its
performance under this Agreement has been made under such officer's supervision,
and (ii) to such officer's knowledge, based on such review, the Master Servicer,
or such Eligible Subservicer who is performing the servicing duties of the
Master Servicer, has in all material respects fulfilled all its obligations
under this Agreement throughout such period, or, if there has been a default in
the fulfillment of any such obligation, specifying each such default known to
such officer and the nature and status thereof.

               (b)     The Master Servicer, or such Eligible Subservicer who is
performing the servicing duties of the Master Servicer, shall deliver to the
Insurer, the Indenture Trustee and the Owner Trustee, and, in the event that
such notice is delivered by the Subservicer, to the Master Servicer, promptly
after having obtained knowledge thereof, but in no event later than two (2)
Business Days thereafter, written notice in an Officer's Certificate of any
event which with the giving of notice or lapse of time, or both, would become a
Master Servicer Termination Event under Section 10.1(a). The Seller or the
Master Servicer shall deliver to the Insurer, the Indenture Trustee, the Owner
Trustee, the Master Servicer or the Seller (as applicable) promptly after having
obtained knowledge thereof, but in no event later than two (2) Business Days
thereafter, written notice in an Officer's Certificate of any event which with
the giving of notice or lapse of time, or both, would become a Master Servicer
Termination Event under any other clause of Section 10.1.

          SECTION 4.11.  ANNUAL INDEPENDENT ACCOUNTANTS' REPORT. (a) The
Master Servicer shall cause a firm of nationally recognized independent
certified public accountants (the "Independent Accountants"), who may also
render other services to the Master Servicer or to the Seller, to deliver to the
Insurer, the Indenture Trustee and the

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Owner Trustee on or before April 30 (or 120 days after the end of the Master
Servicer's fiscal year, if other than December 31) of each year, beginning on
April 30 in calendar year 2004 with respect to the twelve months (or shorter
applicable period) ended the immediately preceding December 31 (or other
applicable date), a report to the effect that they have examined certain
documents and records relating to the servicing of Receivables under this
Agreement and the Series Supplement, compared the information contained in the
Master Servicer's Certificates delivered pursuant to Section 4.9 during the
period covered by such report with such documents and records and that, on the
basis of such examination, such accountants are of the opinion that the
servicing has been conducted in compliance with the terms and conditions as set
forth in Articles IV and V of this Agreement and the applicable provisions of
the Series Supplement, except for such exceptions as they believe to be
immaterial and such other exceptions as shall be set forth in such statement.
Such report shall acknowledge that the Indenture Trustee shall be a
"non-participating party" with respect to such report, or words to similar
effect. The Indenture Trustee shall have no duty to make any independent inquiry
or investigation as to, and shall have no obligation or liability in respect of,
the sufficiency of such procedures.

               (b)     On or before April 30 of each calendar year, beginning
with April 30 in calendar year 2004, the Master Servicer shall cause a firm of
nationally recognized independent public accountants (who may also render other
services to the Master Servicer or the Seller) to furnish a report to the
Indenture Trustee, the Insurer and the Master Servicer to the effect that they
have compared the mathematical calculations of each amount set forth in the
Master Servicer's Certificates delivered pursuant to Section 4.9 during the
period covered by such report with the Master Servicer's computer reports which
were the source of such amounts and that on the basis of such comparison, such
accountants are of the opinion that such amounts are in agreement, except for
such exceptions as they believe to be immaterial and such other exceptions as
shall be set forth in such statement. Such report shall acknowledge that the
Indenture Trustee shall be a "non-participating party" with respect to such
report, or words to similar effect. The Indenture Trustee shall have no duty to
make any independent inquiry or investigation as to, and shall have no
obligation or liability in respect of, the sufficiency of such procedures.

          SECTION 4.12.  ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION
REGARDING RECEIVABLES. The Master Servicer shall provide to representatives of
the Insurer (for so long as it is the Controlling Party), the Indenture Trustee
and the Owner Trustee reasonable access to the documentation regarding the
Receivables. In each case, such access shall be afforded without charge but only
upon reasonable request and during normal business hours. Nothing in this
Section shall derogate from the obligation of the Master Servicer to observe any
applicable law prohibiting disclosure of information regarding the Obligors, and
the failure of the Master Servicer to provide access as provided in this Section
as a result of such obligation shall not constitute a breach of this Section.

          SECTION 4.13.  FIDELITY BOND AND ERRORS AND OMISSIONS POLICY. The
Master Servicer or such Eligible Subservicer that is performing the servicing
duties of the

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Master Servicer, has obtained, and shall continue to maintain in full force and
effect, a Fidelity Bond and Errors and Omissions Policy of a type and in such
amount as is customary for servicers engaged in the business of servicing motor
vehicle receivables.

                                    ARTICLE V

                         TRUST ACCOUNTS; DISTRIBUTIONS;
                STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS

          SECTION 5.1.   ESTABLISHMENT OF TRUST ACCOUNTS. (a) (i) The
Indenture Trustee shall establish and maintain the Trust Accounts required to be
established and maintained pursuant to the Series Supplement, and such Trust
Accounts shall be subject to the sole dominion and control of the Indenture
Trustee for the benefit of the Noteholders and the Insurer.

                  (ii)   No Trust Account shall be maintained with an
institution other than the Indenture Trustee unless such institution agrees in
writing to the provisions of this Section 5.1 as if such institution were the
Indenture Trustee, except that the Indenture Trustee shall continue to be the
"entitlement holder" of the related Trust Account.

                  (iii)  With respect to any Trust Account Property held
from time to time in any Trust Account, the Indenture Trustee agrees that (A)
such Trust Account Property shall at all times be credited in the Indenture
Trustee's books and records to the relevant Trust Account, (B) any Eligible
Investment constituting a deposit account shall be, except as otherwise provided
herein, subject to the exclusive custody and control of the Indenture Trustee,
and, if the Indenture Trustee is not the depositary bank with which such deposit
account is maintained, the Indenture Trustee shall be the depositary bank's
customer with respect thereto, and (C) any Eligible Investment other than a
deposit account shall be held, pending maturity or disposition by the Indenture
Trustee, in accordance with the relevant terms of the definition of "Delivery."
The Indenture Trustee acknowledges and agrees that each item of property
(whether investment property, financial asset, security, instrument, cash or any
other type of property) credited to a Trust Account shall be treated as a
"financial asset" within the meaning of Article 8 of the UCC.

               (b)     Except as otherwise provided in the Series Supplement,
funds on deposit in the Trust Accounts shall be invested by the Indenture
Trustee (or any custodian with respect to funds on deposit in any such account)
in Eligible Investments selected in writing by the Master Servicer (pursuant to
standing instructions or otherwise) which absent any instruction shall be the
investments specified in clause (d) of the definition of Eligible Investments
set forth herein. Unless otherwise agreed in writing by the Rating Agencies and
the Insurer, funds on deposit in any Trust Account shall be invested in Eligible
Investments that will mature so that such funds will be available at the close
of business on the Business Day immediately preceding the following Distribution
Date. Funds deposited in a Trust Account on the day immediately preceding a
Distribution Date and representing the proceeds of Eligible Investments are
required to

                                       36
<Page>

be held overnight in an Eligible Deposit Account and a portion of the earnings
on such overnight deposits in accordance with the agreed upon Indenture Trustee
Fee shall be included in Available Funds (as defined in the Series Supplement)
for the succeeding Distribution Date. All Eligible Investments will be held to
maturity.

               (c)     All investment earnings of monies deposited in the Trust
Accounts shall be deposited (or caused to be deposited) by the Indenture Trustee
in the Collection Account no later than the close of business on the Business
Day immediately preceding the related Distribution Date, and any loss resulting
from such investments shall be charged to the Collection Account. The Master
Servicer will not direct the Indenture Trustee to make any investment of any
funds held in any of the Trust Accounts unless the security interest granted and
perfected in such account will continue to be perfected in such investment, in
either case without any further action by any Person, and, in connection with
any direction to the Indenture Trustee, to make any such investment, if
necessary, the Master Servicer shall deliver to the Indenture Trustee an Opinion
of Counsel to such effect.

               (d)     The Indenture Trustee shall not in any way be held liable
by reason of any insufficiency in any of the Trust Accounts resulting from any
loss on any Eligible Investment included therein except for losses attributable
to the Indenture Trustee's negligence or bad faith or its failure to make
payments on such Eligible Investments issued by the Indenture Trustee in its
commercial capacity as principal obligor and not as Indenture Trustee in
accordance with their terms.

               (e)     If (i) the Master Servicer shall have failed to give
investment directions for any funds on deposit in the Trust Accounts to the
Indenture Trustee by 2:00 p.m. Eastern Time (or such other time as may be agreed
by the Issuer and the Indenture Trustee) on any Business Day; or (ii) an Event
of Default shall have occurred and be continuing, the Indenture Trustee shall,
to the fullest extent practicable, invest and reinvest funds in the Trust
Accounts in one or more Eligible Investments in accordance with paragraph (b)
above; PROVIDED that, if following an Event of Default amounts are to be
distributed to Securityholders other than on a Distribution Date, investments
shall mature on the Business Day preceding any such proposed date of
distribution.

               (f)     The Indenture Trustee shall possess all right, title and
interest in all funds on deposit from time to time in the Trust Accounts and in
all proceeds thereof and all such funds, investments, proceeds and income shall
be part of the Series Trust Estate. Except as otherwise provided herein, the
Trust Accounts shall be under the sole dominion and control of the Indenture
Trustee for the benefit of the Secured Parties. If, at any time, any Trust
Account ceases to be an Eligible Deposit Account, the Indenture Trustee (or the
Master Servicer on its behalf) shall within five Business Days (or such longer
period as to which each Rating Agency and the Insurer (for so long as it is the
Controlling Party) may consent) establish a new Trust Account as an Eligible
Deposit Account and shall transfer any cash and/or any investments to such new
Trust Account. In connection with the foregoing, the Master Servicer agrees
that, in the event that any of the Trust Accounts are not accounts with the
Indenture Trustee, the

                                       37
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Master Servicer shall notify the Indenture Trustee and the Insurer in writing
promptly upon any of such Trust Accounts ceasing to be an Eligible Deposit
Account. The Master Servicer may net against any deposits required to be made to
the Collection Account on the Business Day before any Determination Date amounts
that the Seller, as Certificateholder or otherwise, is entitled to receive as
distributions from the Collection Account on the related Distribution Date.

          SECTION 5.2.   CERTAIN REIMBURSEMENTS TO THE MASTER SERVICER. The
Master Servicer shall be entitled to withhold from amounts otherwise required to
be remitted to the Collection Account with respect to a Collection Period an
amount in respect of funds deposited with respect to prior Collection Periods in
the Collection Account but later determined by the Master Servicer to have
resulted from mistaken deposits or postings or checks returned for insufficient
funds; PROVIDED, THAT, such withholding may be made only following certification
by the Master Servicer of such amounts and the provision of such information to
the Indenture Trustee as may be necessary in the opinion of the Indenture
Trustee to verify the accuracy of such certification.

          SECTION 5.3.   APPLICATION OF COLLECTIONS. All collections for the
Collection Period shall be applied by the Master Servicer as follows: with
respect to each Simple Interest Receivable (other than a Repurchased
Receivable), payments by or on behalf of the Obligor, (other than amounts, if
any, collected with respect to administrative fees, including late fees,
prepayment fees and liquidation fees collected on the Receivable) shall be
applied to interest and principal in accordance with the Simple Interest Method.
With respect to each Actuarial Receivable, (other than a Repurchased
Receivable), payments by or on behalf of the Obligor, (other than amounts, if
any, collected with respect to administrative fees, including late fees,
prepayment fees and liquidation fees collected on the Receivable) shall be
applied to interest and principal in accordance with the Actuarial Method.

          SECTION 5.4.   ADDITIONAL DEPOSITS.

               (a)     HAFC, any Affiliate of HAFC that is the seller under a
Master Receivables Purchase Agreement, Household Finance Corporation and the
Seller, as applicable, shall deposit or cause to be deposited in the Collection
Account on the Business Day preceding the Distribution Date following the date
on which such obligations are due the aggregate Repurchase Amount with respect
to Repurchased Receivables.

               (b)     The Master Servicer agrees for the benefit of the
Indenture Trustee that any amounts payable by the Master Servicer to the Seller
under the Master Receivables Purchase Agreement to which the Master Servicer is
a party which are to be paid by the Seller to the Indenture Trustee for the
benefit of the Secured Parties shall be paid by the Master Servicer, on behalf
of the Seller, directly to the Indenture Trustee.

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<Page>

                                   ARTICLE VI

                                    RESERVED

                                   ARTICLE VII

                                    RESERVED

                                  ARTICLE VIII

                                   THE SELLER

          SECTION 8.1.   REPRESENTATIONS OF SELLER. The Seller makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Receivables and on which the Noteholders are deemed to have relied
on in the purchasing of Notes and any Additional Principal Amount and on which
each Support Provider shall be deemed to have relied on providing the Series
Support. Except as otherwise specifically provided, the representations speak as
of the Closing Date and as of each Transfer Date and shall survive each sale of
the Receivables to the Issuer and each pledge thereof to the Indenture Trustee
pursuant to the Indenture and the Series Supplement.

               (a)     REPRESENTATIONS IN TRANSFER AGREEMENT. The
representations and warranties set forth on the Schedule of Eligibility Criteria
attached as Schedule I to the Series Supplement are true and correct with
respect to the Receivables included in the Series Trust Estate.

               (b)     ORGANIZATION AND GOOD STANDING. The Seller has been duly
organized and is validly existing as a corporation in good standing under the
laws of the State of Nevada, with power and authority to own its properties and
to conduct its business as such properties are currently owned and such business
is currently conducted, and had at all relevant times, and now has, power,
authority and legal right to acquire, own and sell the Owner Trust Estate
transferred to the Trust.

               (c)     DUE QUALIFICATION. The Seller is duly qualified to do
business as a foreign corporation in good standing and has obtained all
necessary licenses and approvals in all jurisdictions where the failure to do so
would materially and adversely affect Seller's ability to transfer the
Receivables and the Other Conveyed Property to the Trust pursuant to this
Agreement, or the validity or enforceability of the Receivables and the Other
Conveyed Property or to perform Seller's obligations hereunder and under the
Related Documents to which the Seller is a party.

               (d)     POWER AND AUTHORITY. The Seller has the power and
authority to execute and deliver this Agreement and the Related Documents to
which it is a party and to carry out its terms and their terms, respectively;
the Seller has full power and authority to sell and assign the Owner Trust
Estate to be sold and assigned to and deposited with the Trust by it and has
duly authorized such sale and assignment to the Trust by all necessary corporate
action; and the execution, delivery and performance of

                                       39
<Page>

this Agreement and the Related Documents to which the Seller is a party have
been duly authorized by the Seller by all necessary corporate action.

               (e)     VALID SALE, BINDING OBLIGATIONS. This Agreement and each
related Transfer Agreement effects a valid sale, transfer and assignment of the
Owner Trust Estate, enforceable against the Seller and creditors of and
purchasers from the Seller; and this Agreement and the Related Documents to
which the Seller is a party, when duly executed and delivered, shall constitute
legal, valid and binding obligations of the Seller enforceable in accordance
with their respective terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors' rights generally and by equitable limitations on the
availability of specific remedies, regardless of whether such enforceability is
considered in a proceeding in equity or at law.

               (f)     NO VIOLATION. The consummation of the transactions
contemplated by this Agreement and the Related Documents and the fulfillment of
the terms of this Agreement and the Related Documents shall not (A) conflict
with, result in any breach of any of the terms and provisions of, or constitute
(with or without notice, lapse of time or both) a default under, the articles of
incorporation or by-laws of the Seller, or any indenture, agreement, mortgage,
deed of trust or other instrument to which the Seller is a party or by which it
is bound, (B) result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement, mortgage,
deed of trust or other instrument, other than this Agreement, or (C) violate any
law, order, rule or regulation applicable to the Seller of any court or of any
federal or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Seller or any of its properties,
except in the case of (A), (B) or (C) where any such default, Lien or violation
shall not materially and adversely affect the interest of the Noteholders, the
Insurer or the Trust in the Series Trust Estate.

               (g)     NO PROCEEDINGS. There are no proceedings or
investigations pending or, to the Seller's knowledge, threatened against the
Seller, before any court, regulatory body, administrative agency or other
tribunal or governmental instrumentality having jurisdiction over the Seller or
its properties (A) asserting the invalidity of this Agreement or any of the
Related Documents, (B) seeking to prevent the issuance of any Securities or the
consummation of any of the transactions contemplated by this Agreement or any of
the Related Documents, (C) seeking any determination or ruling that might
materially and adversely affect the performance by the Seller of its obligations
under, or the validity or enforceability of, this Agreement or any of the
Related Documents, or (D) seeking to adversely affect the federal income tax or
other federal, state or local tax attributes of the Securities.

               (h)     APPROVALS. All approvals, authorizations, consents,
orders or other actions of any person, corporation or other organization, or of
any court, governmental agency or body or official, required in connection with
the execution and delivery by the Seller of this Agreement and the other Related
Documents to which it is a party, and the consummation of the transactions
contemplated hereby and thereby have been or will be taken or obtained on or
prior to the Closing Date and each Transfer Date.

                                       40
<Page>

               (i)     NO CONSENTS. The Seller is not required to obtain the
consent of any other party or any consent, license, approval or authorization,
or registration or declaration with, any governmental authority, bureau or
agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement which has not already been obtained.

               (j)     CHIEF EXECUTIVE OFFICE. The chief executive office of the
Seller is at 1111 Town Center Drive, Las Vegas, Nevada 89134.

          SECTION 8.2.   CORPORATE EXISTENCE. (a) During the term of this
Agreement, the Seller will keep in full force and effect its existence, rights
and franchises as a corporation under the laws of the jurisdiction of its
incorporation and will obtain and preserve its qualification to do business in
each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Agreement, the Related Documents
and each other instrument or agreement necessary or appropriate to the proper
administration of this Agreement and the transactions contemplated hereby.

               (b)     During the term of this Agreement, the Seller shall
observe the applicable legal requirements for the recognition of the Seller as a
legal entity separate and apart from its Affiliates, including as follows:

                       (i)    the Seller shall not engage in any other business
               other than as provided in Article THIRD of Seller's Articles of
               Incorporation and shall not amend such Article THIRD without the
               prior written consent of the Insurer (for so long as it is the
               Controlling Party) which consent shall not be unreasonably
               withheld;

                       (ii)   the Seller shall maintain corporate records and
               books of account separate from those of its Affiliates;

                       (iii)  except as otherwise provided in this Agreement,
               the Seller shall not commingle its assets and funds with those of
               its Affiliates;

                       (iv)   the Seller shall hold such appropriate meetings of
               its Board of Directors as are necessary to authorize all the
               Seller's corporate actions required by law to be authorized by
               the Board of Directors, shall keep minutes of such meetings and
               of meetings of its stockholder(s) and observe all other customary
               corporate formalities or shall obtain written consents in lieu of
               formal meetings of its Board of Directors or stockholder(s) (and
               any successor Seller that is not a corporation shall observe
               similar procedures in accordance with its governing documents and
               applicable law);

                                       41
<Page>

                       (v)    the Seller shall at all times hold itself out to
               the public under the Seller's own name as a legal entity separate
               and distinct from its Affiliates;

                       (vi)   the Seller shall not become involved in the
               day-to-day management of any other Person;

                       (vii)  the Seller shall not guarantee any other Person's
               obligations or advance funds to any other Person for the payment
               of expenses or otherwise;

                       (viii) the Seller shall not act as an agent of any other
               Person in any capacity;

                       (ix)   the Seller shall not dissolve or liquidate, in
               whole or in part; and

                       (x)    all transactions and dealings between the Seller
               and its Affiliates will be conducted on an arm's-length basis.

               (c)     During the term of this Agreement, the Seller will comply
with the limitations on its business and activities, as set forth in its
Articles of Incorporation, and will not incur indebtedness other than pursuant
to or as expressly permitted by the Related Documents.

               (d)     During the term of this Agreement, the Seller will ensure
that its corporate records indicate that the Indenture Trustee has the exclusive
right to vote the Class SV Preferred Stock.

          SECTION 8.3.   LIABILITY OF SELLER; INDEMNITIES. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken under this Agreement by the Seller and the representations made by
the Seller under this Agreement.

               (a)     The Seller shall indemnify, defend and hold harmless the
Issuer, the Insurer, the Owner Trustee and the Indenture Trustee from and
against any taxes that may at any time be asserted against any such Person with
respect to the transactions contemplated in this Agreement and any of the Basic
Documents (except any income taxes arising out of fees paid to the the Owner
Trustee, the Indenture Trustee and except any taxes to which the Owner Trustee
or the Indenture Trustee may otherwise be subject to), including any sales,
gross receipts, general corporation, tangible personal property, privilege or
license taxes (but, in the case of the Issuer, not including any taxes asserted
with respect to federal or other income taxes arising out of distributions on
the Certificates and the Notes) and costs and expenses in defending against the
same.

               (b)     The Seller shall indemnify, defend and hold harmless the
Issuer, the Owner Trustee and the Indenture Trustee against any loss, liability
or expense incurred by reason of (i) the Seller's willful misfeasance, bad faith
or negligence in the

                                       42
<Page>

performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement and (ii) the
Seller's or the Issuer's violation of Federal or state securities laws in
connection with the offering and sale of the Notes.

               (c)     The Seller shall indemnify, defend and hold harmless the
Owner Trustee and the Indenture Trustee and their respective officers,
directors, employees and agents from and against any and all costs, expenses,
losses, claims, damages and liabilities arising out of, or incurred in
connection with, the acceptance or performance of the trusts and duties set
forth herein and in the Basic Documents, except to the extent that such cost,
expense, loss, claim, damage or liability shall be due to the willful
misfeasance, bad faith or negligence (except for errors in judgment) of the
Person seeking indemnification.

          Indemnification under this Section shall survive the resignation or
removal of the Owner Trustee or the Indenture Trustee and the termination of
this Agreement or the Indenture or the Trust Agreement, as applicable, and shall
include reasonable fees and expenses of counsel and other expenses of
litigation. If the Seller shall have made any indemnity payments pursuant to
this Section and the Person to or on behalf of whom such payments are made
thereafter shall collect any of such amounts from others, such Person shall
promptly repay such amounts to the Seller, without interest.

          SECTION 8.4.   MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, SELLER. Any Person (a) into which the Seller may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Seller shall be a party or (c) which may succeed to the properties and assets of
the Seller substantially as a whole, which Person in any of the foregoing cases
(x) has articles of incorporation containing provisions relating to limitations
on business and other matters substantially identical to those contained in the
Seller's articles of incorporation and (y) executes an agreement of assumption
to perform every obligation of the Seller under this Agreement and the other
Related Documents shall be the successor to the Seller hereunder without the
execution or filing of any document or any further act by any of the parties to
this Agreement, PROVIDED, HOWEVER, that the Insurer (for so long as it is the
Controlling Party) shall have consented to such action and written confirmation
shall be received by the Indenture Trustee, and the Insurer from each Rating
Agency rating the Notes that the then current rating of the Notes will not be
withdrawn, downgraded or suspended as a result of any action described in this
Section 8.4.

          SECTION 8.5.   LIMITATION ON LIABILITY OF SELLER AND OTHERS. (a) The
Seller and any director or officer or employee or agent of the Seller may rely
in good faith on the written advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any matters
arising under any Basic Document. The Seller shall not be under any obligation
to appear in, prosecute or defend any legal action that shall not be incidental
to its obligations under this Agreement, and that in its opinion may involve it
in any expense or liability. Except as provided in Section 8.3 hereof, neither
the Seller nor any of the directors, officers, employees or agents of the Seller
acting in such capacities shall be under any liability to the Trust, the
Securityholders, any Support Provider or any other Person for any action

                                       43
<Page>

taken or for refraining from the taking of any action in good faith in such
capacities pursuant to this Agreement; PROVIDED, HOWEVER, that this provision
shall not protect the Seller or any such person against any liability which
would otherwise be imposed by reason of willful misfeasance, bad faith or
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder.

               (b)     All obligations of the Seller under this Agreement
(including, but not limited to, repurchase and indemnification obligations) and
under any of the Related Documents shall be limited in recourse to property, if
any, which the Seller may hold from time to time, not subject to any Lien.

          SECTION 8.6.   SELLER MAY OWN CERTIFICATES OR NOTES. The Seller and
any Affiliate thereof may in its individual or any other capacity become the
owner or pledgee of Certificates or Notes with the same rights as it would have
if it were not the Seller or an Affiliate thereof, except as expressly provided
herein or in any Basic Document. Notes or Certificates so owned by the Seller or
such Affiliate shall have an equal and proportionate benefit under the
provisions of the Basic Documents, without preference, priority, or distinction
as among all of the Notes or Certificates; PROVIDED, HOWEVER, (i) except in the
event that all outstanding Notes and Certificates are owned by the Seller and/or
any Affiliates thereof, that any Notes or Certificates owned by the Seller or
any Affiliate thereof, during the time such Notes or Certificates are owned by
them, shall be without voting rights for any purpose set forth in the Basic
Documents and (ii) any Notes or Certificates owned by the Seller or any
Affiliate thereof, during the time such Notes or Certificates are owned by them,
will not be entitled to the benefits of the Note Policy. The Seller shall notify
the Owner Trustee, the Insurer and the Indenture Trustee promptly after it or
any of its Affiliates become the owner or pledgee of a Certificate or a Note.

                                   ARTICLE IX

                               THE MASTER SERVICER

          SECTION 9.1.   REPRESENTATIONS OF MASTER SERVICER. The Master Servicer
makes the following representations on which the Issuer is deemed to have relied
in acquiring the Owner Trust Estate, on which the Noteholders are deemed to have
relied in the purchasing of Notes and any Additional Principal Amount, and on
which Support Provider shall be deemed to have relied in providing the Series
Support. The representations speak as of the execution and delivery of this
Agreement, the Closing Date and as of each Transfer Date and shall survive the
sale of the Owner Trust Estate to the Issuer and the pledge of the Series Trust
Estate to the Indenture Trustee pursuant to the Indenture.

                       (i)    ORGANIZATION AND GOOD STANDING. The Master
               Servicer has been duly organized and is validly existing and in
               good standing under the laws of its jurisdiction of organization,
               with power, authority and legal right to own its properties and
               to conduct its business as such properties are currently owned
               and

                                       44
<Page>

               such business is currently conducted, and had at all relevant
               times, and now has, power, authority and legal right to enter
               into and perform its obligations under this Agreement and the
               other Related Documents to which it is a party.

                       (ii)   DUE QUALIFICATION. The Master Servicer is duly
               qualified to do business as a foreign corporation in good
               standing and has obtained all necessary licenses and approvals,
               in all jurisdictions in which the ownership or lease of property
               or the conduct of its business (including the servicing of the
               Receivables as required by this Agreement) requires or shall
               require such qualification; except where the failure to qualify
               or obtain licenses or approvals would not have a material adverse
               effect on its ability to perform its obligations as Master
               Servicer under this Agreement and the other Related Documents to
               which it is a party.

                       (iii)  POWER AND AUTHORITY. The Master Servicer has the
               power and authority to execute and deliver this Agreement and the
               Related Documents to which it is a party and to carry out its
               terms and their terms, respectively, and the execution, delivery
               and performance of this Agreement and the Related Documents to
               which the Master Servicer is a party have been duly authorized by
               the Master Servicer by all necessary corporate action.

                       (iv)   BINDING OBLIGATION. This Agreement and the Related
               Documents to which the Master Servicer is a party shall
               constitute legal, valid and binding obligations of the Master
               Servicer enforceable in accordance with their respective terms,
               except as enforceability may be limited by bankruptcy,
               insolvency, reorganization, or other similar laws affecting the
               enforcement of creditors' rights generally and by equitable
               limitations on the availability of specific remedies, regardless
               of whether such enforceability is considered in a proceeding in
               equity or at law.

                       (v)    NO VIOLATION. The consummation of the transactions
               contemplated by this Agreement and the Related Documents to which
               the Master Servicer is a party, and the fulfillment of the terms
               of this Agreement and the Related Documents to which the Master
               Servicer is a party, shall not (A) conflict with, result in any
               breach of any of the terms and provisions of, or constitute (with
               or without notice or lapse of time) a default under, the articles
               of incorporation or bylaws of the Master Servicer, or any
               indenture, agreement, mortgage, deed of trust or other instrument
               to which the Master Servicer is a party or by which it is bound,
               or (B) result in the creation or imposition of any Lien upon any
               of its properties pursuant to the terms of any such indenture,
               agreement, mortgage, deed of trust or other

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               instrument, or (C) violate any law, order, rule or regulation
               applicable to the Master Servicer of any court or of any federal
               or state regulatory body, administrative agency or other
               governmental instrumentality having jurisdiction over the Master
               Servicer or any of its properties, except in the case of (A), (B)
               or (C) where any such default, Lien or violation shall not
               materially and adversely affect the interest of the Noteholders,
               the Insurer or the Trust in the Series Trust Estate or affect the
               Master Servicer's ability to perform its obligations under this
               Agreement.

                       (vi)   NO PROCEEDINGS. There are no proceedings or
               investigations pending or, to the Master Servicer's knowledge,
               threatened against the Master Servicer, before any court,
               regulatory body, administrative agency or other tribunal or
               governmental instrumentality having jurisdiction over the Master
               Servicer or its properties (A) asserting the invalidity of this
               Agreement or any of the Related Documents, (B) seeking to prevent
               the issuance of the Securities or the consummation of any of the
               transactions contemplated by this Agreement or any of the Related
               Documents, or (C) seeking any determination or ruling that might
               materially and adversely affect the performance by the Master
               Servicer of its obligations under, or the validity or
               enforceability of, this Agreement or any of the Related Documents
               or (D) seeking to adversely affect the federal income tax or
               other federal, state or local tax attributes of the Securities.

                       (vii)  APPROVALS. All approvals, authorizations,
               consents, orders or other actions of any person, corporation or
               other organization, or of any court, governmental agency or body
               or official, required in connection with the execution and
               delivery by the Master Servicer of this Agreement and the
               consummation of the transactions contemplated hereby have been or
               will be taken or obtained on or prior to the Closing Date.

                       (viii) NO CONSENTS. The Master Servicer is not required
               to obtain the consent of any other party or any consent, license,
               approval or authorization, or registration or declaration with,
               any governmental authority, bureau or agency in connection with
               the execution, delivery, performance, validity or enforceability
               of this Agreement which has not already been obtained.

                       (ix)   CHIEF EXECUTIVE OFFICE. The chief executive office
               of the Master Servicer is located at 2700 Sanders Road, Prospect
               Heights, Illinois 60070.

          SECTION 9.2.   LIABILITY OF MASTER SERVICER; INDEMNITIES. (a) The
Master Servicer (in its capacity as such) shall be liable hereunder only to the
extent of the

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obligations in this Agreement specifically undertaken by the Master Servicer and
the representations made by the Master Servicer.

               (b)     The Master Servicer shall defend, indemnify and hold
harmless the Trust, the Indenture Trustee, the Owner Trustee, each Support
Provider and their respective officers, directors, agents and employees, from
and against any and all costs, expenses, losses, damages, claims and
liabilities, including reasonable fees and expenses of counsel and expenses of
litigation arising out of or resulting from the use, ownership or operation of,
or lien on, any Financed Vehicle.

               (c)     The Master Servicer (when the Master Servicer is
Household Finance Corporation or an Affiliate of Household Finance Corporation)
shall indemnify, defend and hold harmless the Trust, the Indenture Trustee, the
Owner Trustee, each Support Provider and their respective officers, directors,
agents and employees and from and against any taxes that may at any time be
asserted against any of such parties with respect to the transactions
contemplated in this Agreement, including, without limitation, any sales, gross
receipts, tangible or intangible personal property, privilege or license taxes
(but not including any federal or other income taxes) and costs and expenses in
defending against the same, except to the extent that such costs, expenses,
losses, damages, claims and liabilities arise out of the negligence or willful
misconduct of such parties.

               (d)     The Master Servicer (when the Master Servicer is not
Household Finance Corporation) shall indemnify, defend and hold harmless the
Trust, the Indenture Trustee, the Owner Trustee, each Support Provider and their
respective officers, directors, agents and employees from and against any taxes
with respect to the sale of Receivables in connection with servicing hereunder
that may at any time be asserted against any of such parties with respect to the
transactions contemplated in this Agreement, including, without limitation, any
sales, gross receipts, tangible or intangible personal property, privilege or
license taxes (but not including any federal or other income taxes) and costs
and expenses in defending against the same, except to the extent that such
costs, expenses, losses, damages, claims and liabilities arise out of the
negligence or willful misconduct of such parties.

               (e)     The Master Servicer shall indemnify, defend and hold
harmless the Trust, the Indenture Trustee, the Owner Trustee, each Support
Provider and their respective officers, directors, agents and employees from and
against any and all costs, expenses, losses, claims, damages, and liabilities to
the extent that such cost, expense, loss, claim, damage, or liability arose out
of, or was imposed upon the Trust, the Owner Trustee or the Indenture Trustee,
and the Insurer (to the extent provided in the Insurance Agreement), by reason
of the breach of this Agreement by the Master Servicer, the negligence,
misfeasance, or bad faith of the Master Servicer in the performance of its
duties under this Agreement or the Series Supplement or by reason of reckless
disregard of its obligations and duties under this Agreement or the Series
Supplement, except to the extent that such costs, expenses, losses, damages,
claims, and liabilities arise out of the negligence or willful misconduct of the
Person seeking indemnification.

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<Page>

               (f)     The Master Servicer (when the Master Servicer is
Household Finance Corporation or an Affiliate of Household Finance Corporation)
shall indemnify, defend and hold harmless the Trust, the Indenture Trustee, the
Owner Trustee, the Insurer (to the extent provided in the Insurance Agreement)
and their respective officers, directors, agents and employees from and against
any loss, liability or expense incurred by reason of the violation by Master
Servicer of federal or state securities laws in connection with the registration
or the sale of the Securities, except to the extent that such costs, expenses,
losses, damages, claims, and liabilities arise out of the negligence or willful
misconduct of such parties.

               (g)     Indemnification under this Article shall survive the
termination of this Agreement and will survive the early resignation or removal
of any of the parties hereto and shall include, without limitation, reasonable
fees and expenses of counsel and expenses of litigation. If the Master Servicer
has made any indemnity payments pursuant to this Article and the recipient
thereafter collects any of such amounts from others, the recipient shall
promptly repay such amounts collected to the Master Servicer, without interest.
Notwithstanding any other provision of this Agreement, the obligations of the
Master Servicer shall not terminate or be deemed released upon the resignation
or termination of Household Finance Corporation as the Master Servicer and shall
survive any termination of this Agreement.

          SECTION 9.3.   MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF THE MASTER SERVICER. Any Person (i) into which the Master
Servicer may be merged or consolidated, (ii) resulting from any merger or
consolidation to which the Master Servicer shall be a party, (iii) which
acquires by conveyance, transfer, or lease substantially all of the assets of
the Master Servicer, or (iv) succeeding to the business of the Master Servicer,
in any of the foregoing cases shall execute an agreement of assumption to
perform every obligation of the Master Servicer under this Agreement and each
Related Document and, whether or not such assumption agreement is executed,
shall be the successor to the Master Servicer under this Agreement and each
Related Document without the execution or filing of any paper or any further act
on the part of any of the parties to this Agreement or the Series Supplement,
anything in this Agreement or the Series Supplement to the contrary
notwithstanding. Notwithstanding the foregoing, the Master Servicer shall not
merge or consolidate with any other Person or permit any other Person to become
a successor to the Master Servicer's business, unless the Master Servicer shall
have delivered to the Owner Trustee, the Insurer and the Indenture Trustee an
Officer's Certificate and an Opinion of Counsel each stating that such
consolidation, merger or succession and such agreement of assumption comply with
this Section 9.3 and that all conditions precedent, if any, provided for in this
Agreement relating to such transaction have been complied with.

          SECTION 9.4.   LIMITATION ON LIABILITY OF MASTER SERVICER AND OTHERS.
(a) Neither the Master Servicer, the Indenture Trustee nor any of the directors
or officers or employees or agents of any such Persons shall be under any
liability to the Trust, except as provided in this Agreement and each Related
Document, for any action taken or for refraining from the taking of any action
pursuant to this Agreement or a Related Document; PROVIDED, HOWEVER, that this
provision shall not protect the Master Servicer,

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<Page>

the Indenture Trustee or any such Persons against any liability that would
otherwise be imposed by reason of willful misfeasance, bad faith or negligence
(excluding errors in judgment) in the performance of duties (including
negligence with respect to the Master Servicer's indemnification obligations
hereunder), by reason of reckless disregard of obligations and duties under this
Agreement and each Related Document or any violation of law by the Master
Servicer, the Indenture Trustee or such person, as the case may be; PROVIDED,
FURTHER, that this provision shall not affect any liability to indemnify the
Indenture Trustee or the Owner Trustee for costs, taxes, expenses, claims,
liabilities, losses or damages paid by the Indenture Trustee or the Owner
Trustee, in their individual capacities. The Master Servicer, the Indenture
Trustee and any director, officer, employee or agent of such Persons may rely in
good faith on the written advice of counsel or on any document of any kind prima
facie properly executed and submitted by any Person pertaining to any matters
arising under this Agreement. The Indenture Trustee shall not be required to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if the repayment of such funds or adequate written indemnity
against such risk or liability is not reasonably assured to it in writing prior
to the expenditure of risk of such funds or incurrence of financial liability.

               (b)     Unless serving as Successor Master Servicer pursuant to
Sections 10.2 and 10.3 hereof, and notwithstanding any other provision to the
contrary herein, the Indenture Trustee shall not be liable for any obligation of
the Master Servicer contained in this Agreement or any Related Document, and the
Owner Trustee, the Seller and the Noteholders shall look only to the Master
Servicer to perform such obligations.

               (c)     The parties expressly acknowledge and consent to the
initial Indenture Trustee acting in the potential dual capacity of successor
Master Servicer and in the capacity as Indenture Trustee. Such Indenture Trustee
may, in such dual or other capacity, discharge its separate functions fully,
without hindrance or regard to conflict of interest principles, duty of loyalty
principles or other breach of fiduciary duties to the extent that any such
conflict or breach arises from the performance by such Indenture Trustee of
express duties set forth in this Agreement in any of such capacities, all of
which defenses, claims or assertions are hereby expressly waived by the other
parties hereto and the Noteholders except in the case of negligence or willful
misconduct by such Indenture Trustee.

          SECTION 9.5.   DELEGATION OF DUTIES. Subject to Section 9.7, in the
ordinary course of business, the Master Servicer and the Subservicer, provided
it is HAFC, at any time may delegate any of their duties hereunder to any
Person, including any of their Affiliates, who agrees to conduct such duties in
accordance with standards employed by the Master Servicer or such Subservicer in
compliance with Section 4.1. Such delegation shall not relieve the Master
Servicer of its liabilities and responsibilities with respect to such duties and
shall not constitute a resignation within the meaning of Section 9.6.

          SECTION 9.6.   MASTER SERVICER NOT TO RESIGN. Subject to the
provisions of Section 9.3, the Master Servicer shall not resign from the
obligations and

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<Page>

duties hereby imposed on it except (i) upon determination that the performance
of its obligations or duties hereunder are no longer permissible under
applicable law or are in material conflict by reason of applicable law with any
other activities carried on by it or its subsidiaries or Affiliates, or (ii)
upon satisfaction of the following conditions: (a) the Master Servicer has
proposed a successor servicer to the Indenture Trustee and the Insurer (for so
long as it is the Controlling Party) in writing and such proposed successor
servicer is reasonably acceptable to the Indenture Trustee, the Insurer (for so
long as it is the Controlling Party) and the Administrative Agent, where one
exists, or otherwise, the Managing Agents; (b) such proposed successor servicer
has agreed in writing to assume the obligations of Master Servicer hereunder and
under each Basic Document to which it is a party and (c) the Master Servicer has
delivered to the Indenture Trustee and the Insurer an Opinion of Counsel to the
effect that all conditions precedent to the resignation of the Master Servicer
and the appointment of and acceptance by the proposed successor servicer have
been satisfied; PROVIDED, HOWEVER, that, in the case of clause (i) above, no
such resignation by the Master Servicer shall become effective until the
Indenture Trustee shall have assumed the Master Servicer's responsibilities and
obligations hereunder or the Indenture Trustee shall have designated a successor
servicer reasonably acceptable to the Insurer (for as long as it is the
Controlling Party) in accordance with Section 10.3 which shall have assumed such
responsibilities and obligations. Any such resignation shall not relieve the
Master Servicer of responsibility for any of its obligations hereunder arising
prior to the effective date of such resignation. Any such determination
permitting the resignation of the Master Servicer pursuant to clause (i) above
shall be evidenced by an Opinion of Counsel to such effect delivered to the
Indenture Trustee and the Insurer.

          SECTION 9.7.   SUBSERVICING AGREEMENTS BETWEEN MASTER SERVICER AND
SUBSERVICERS. The Master Servicer initially appoints HAFC to subservice the
Receivables. From time to time after the Closing Date, the Master Servicer may
enter into a subservicing agreement with any Person other than HAFC which is an
Eligible Subservicer and is in compliance with the laws of each state necessary
to enable it to perform the obligations of the Master Servicer pursuant to this
Agreement. Any such subservicing agreement shall be consistent with and not
violate the provisions of this Agreement. The Master Servicer shall not be
relieved of its obligations under this Agreement and each Basic Document to
which it is a party notwithstanding any agreement relating to subservicing and
the Master Servicer shall be obligated to the same extent and under the same
terms and conditions as if it alone were servicing and administering the
Receivables. For purposes of this Agreement and each Related Document, the
Master Servicer shall be deemed to have received payments on Receivables when
any Subservicer has received such payments. The parties hereto acknowledge that
with respect to statements or certificates required to be delivered by the
Master Servicer in accordance with this Agreement and the Series Supplement,
including, but not limited to, Sections 4.9, 4.10 and 4.11 hereof, that a
statement or certificate delivered by a subservicer shall be sufficient to
discharge the Master Servicer's obligation to deliver such certificate or
statement.

          SECTION 9.8.   SUCCESSOR SUBSERVICERS. The Master Servicer may
terminate any Subservicer and either directly service the related Receivables
itself or enter into an agreement with a successor Subservicer that is an
Eligible Subservicer.

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<Page>

Neither of the Owner Trustee nor the Indenture Trustee shall have a duty or
obligation to monitor or supervise the performance of any Subservicer.

                                    ARTICLE X

                                     DEFAULT

          SECTION 10.1.  MASTER SERVICER TERMINATION EVENT. For purposes of this
Agreement, each of the following shall constitute a "Master Servicer Termination
Event":

               (a)     Any failure by the Master Servicer to deliver, or cause
to be delivered, to the Indenture Trustee for distribution pursuant to the terms
of this Agreement or any Basic Document, any proceeds or payment required to be
so delivered by the Master Servicer under the terms of this Agreement or any
Basic Document (including deposits of the Repurchase Amount pursuant to Section
4.7) that continues unremedied for a period of three Business Days after written
notice is received by the Master Servicer from the Indenture Trustee or the
Insurer or after discovery of such failure by a responsible officer of the
Master Servicer (but in no event later than three Business Days after the Master
Servicer is required to make such delivery or deposit);

               (b)     Failure on the part of the Master Servicer duly to
observe or perform any other covenants or agreements of the Master Servicer set
forth in this Agreement or the Basic Documents, which failure (i) materially and
adversely affects the rights of Noteholders (determined without regard to the
availability of funds under any Series Support) or the Insurer and (ii)
continues unremedied for a period of 60 days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been given
to the Master Servicer by the Indenture Trustee or the Insurer or after
discovery thereof by the Master Servicer;

               (c)     The entry of a decree or order for relief by a court or
regulatory authority having jurisdiction in respect of the Master Servicer in an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future, federal bankruptcy, insolvency or similar
law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Master Servicer or of any
substantial part of its property or ordering the winding up or liquidation of
the affairs of the Master Servicer or the commencement of an involuntary case
under the federal bankruptcy laws, as now or hereinafter in effect, or another
present or future federal or state bankruptcy, insolvency or similar law and
such case is not dismissed within 60 days; or

               (d)     The commencement by the Master Servicer of a voluntary
case under the federal bankruptcy laws, as now or hereafter in effect, or any
other present or future, federal or state, bankruptcy, insolvency or similar
law, or the consent by the Master Servicer to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Master Servicer or of any substantial part of
its property or the making by the Master Servicer of an

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assignment for the benefit of creditors or the failure by the Master Servicer
generally to pay its debts as such debts become due or the taking of corporate
action by the Master Servicer in furtherance of any of the foregoing; or

               (e)     Any representation, warranty or certification of the
Master Servicer made in this Agreement or any Basic Document or any certificate,
report or other writing delivered pursuant hereto or thereto shall prove to be
incorrect in any material respect as of the time when the same shall have been
made, and the incorrectness of such representation, warranty or statement has a
material adverse effect on the interests of the Indenture Trustee in the Series
Trust Estate or the Insurer and, within 60 days after written notice thereof
shall have been given to the Master Servicer by the Indenture Trustee or the
Insurer or after discovery thereof by the Master Servicer, the circumstances or
condition in respect of which such representation, warranty or statement was
incorrect shall not have been eliminated or otherwise cured; or

               (f)     An Event of Default (as defined in the Insurance
Agreement) shall have occurred.

          Notwithstanding the foregoing, a delay in or failure of performance
under Section 10.1(a) for a period of three Business Days or under Section
10.1(b) for a period of 60 days, shall not constitute a Master Servicer
Termination Event if such delay or failure could not be prevented by the
exercise of reasonable diligence by the Master Servicer and such delay or
failure was caused by an act of God, acts of declared or undeclared war,
terrorism, public disorder, rebellion or sabotage, epidemics, landslides,
lightning, fire, hurricanes, earthquakes, floods or similar causes. The
preceding sentence shall not relieve the Master Servicer from using its best
efforts to perform its obligations in a timely manner in accordance with the
terms of this Agreement, and the Master Servicer shall provide the Indenture
Trustee, the Insurer and the Seller with an Officers' Certificate giving prompt
notice of such failure or delay by it, together with a description of its
efforts to so perform its obligations.

          SECTION 10.2.  CONSEQUENCES OF A MASTER SERVICER TERMINATION EVENT. If
a Master Servicer Termination Event shall occur and be continuing, the Indenture
Trustee (to the extent a Trust Officer of the Indenture Trustee has actual
knowledge or has received written notice thereof), by notice given in writing to
the Master Servicer may, with the consent of the Insurer (for so long as it is
the Controlling Party), and shall, at the written direction of the Controlling
Party, terminate all of the rights and obligations of the Master Servicer under
this Agreement and the other Basic Documents to which it is a party. On or after
the receipt by the Master Servicer of such written notice, all authority, power,
obligations and responsibilities of the Master Servicer under this Agreement,
whether with respect to the Notes, the Receivables or the Other Conveyed
Property or otherwise, automatically shall pass to, be vested in, and become
obligations and responsibilities, of the Indenture Trustee (or such other
successor Master Servicer appointed by the Controlling Party pursuant to Section
10.3); PROVIDED, HOWEVER, that the successor Master Servicer shall have (i) no
liability with respect to any obligation which was required to be performed by
the terminated Master Servicer prior to the date that the successor Master
Servicer becomes the Master Servicer or any claim of a third party

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<Page>

based on any alleged action or inaction of the terminated Master Servicer, (ii)
no obligation to perform any repurchase or advancing obligations, if any, of the
terminated Master Servicer, (iii) no obligation to pay any of the fees and
expenses of any other party involved in this transaction not expressly assumed
by the Master Servicer and (iv) no liability or obligation with respect to any
Master Servicer indemnification obligations of any prior master servicer
including the original master servicer.

          Notwithstanding anything contained in this Agreement to the contrary,
the Indenture Trustee as successor Master Servicer and any Successor Master
Servicer, are authorized to accept and rely on all of the accounting, records
(including computer records) and work of the prior Master Servicer relating to
the Receivables (collectively, the "Predecessor Servicer Work Product") without
any audit or other examination thereof, and the Indenture Trustee or Successor
Master Servicer shall have no duty, responsibility, obligation or liability for
the acts and omissions of the prior Master Servicer. If any error, inaccuracy,
omission or incorrect or non-standard practice or procedure (collectively,
"Errors") exist in any Predecessor Servicer Work Product and such Errors make it
materially more difficult to service or should cause or materially contribute to
the Indenture Trustee or Successor Master Servicer making or continuing any
Errors (collectively, "Continued Errors"), the Indenture Trustee or Successor
Master Servicer, as the case may be, shall have no duty, responsibility,
obligation or liability for such Continued Errors; PROVIDED, HOWEVER, that the
Indenture Trustee or Successor Master Servicer agrees to use its best efforts to
prevent further Continued Errors. In the event that the Indenture Trustee or
Successor Master Servicer becomes aware of Errors or Continued Errors, such
Indenture Trustee or Successor Master Servicer shall, with the prior consent of
(i) for so long as it is the Controlling Party, the Insurer, or (ii) for so long
as the Insurer is not the Controlling Party, Noteholders representing 66-2/3% of
the outstanding Notes, use its best efforts to reconstruct and reconcile such
data as is commercially reasonable to correct such Errors and Continued Errors
and to prevent future Continued Errors.

          The successor Master Servicer is authorized and empowered by this
Agreement to execute and deliver, on behalf of the terminated Master Servicer,
as attorney-in-fact or otherwise, any and all documents and other instruments
and to do or accomplish all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, whether to complete the
transfer and endorsement of the Owner Trust Estate and related documents to show
the Trust as lienholder or secured party on the related Lien Certificates, or
otherwise. The terminated Master Servicer agrees to cooperate with the successor
Master Servicer in effecting the termination of the responsibilities and rights
of the terminated Master Servicer under this Agreement, including, without
limitation, the transfer to the successor Master Servicer for administration by
it of all cash amounts that shall at the time be held by the terminated Master
Servicer for deposit, or have been deposited by the terminated Master Servicer,
in a Trust Account and the delivery to the successor Master Servicer of all
Receivable Files, Monthly Records and Collection Records and a computer tape in
readable form as of the most recent Business Day containing all information
necessary to enable the successor Master Servicer to service the Owner Trust
Estate. If requested by the Controlling Party, the successor Master Servicer
shall direct the Obligors to make all payments under the

                                       53
<Page>

Receivables directly to the successor Master Servicer (in which event the
successor Master Servicer shall process such payments in accordance with Section
4.2(d) or 4.2(e), as applicable). The terminated Master Servicer shall grant the
Indenture Trustee, the Insurer (for so long as it is the Controlling Party) and
the successor Master Servicer reasonable access to the terminated Master
Servicer's premises at the terminated Master Servicer's expense.

          SECTION 10.3.  APPOINTMENT OF SUCCESSOR. (a) On and after the time
the Master Servicer receives a notice of termination pursuant to Section 10.2 or
upon the resignation of the Master Servicer pursuant to Section 9.6, the Master
Servicer shall continue to perform all servicing functions under this Agreement
until the date specified in such termination notice or until such resignation
becomes effective or until a date mutually agreed upon by the Master Servicer,
the Indenture Trustee and the Insurer (for as long as it is the Controlling
Party). The Indenture Trustee shall as promptly as possible after such
termination or resignation appoint an Eligible Servicer as a successor servicer
(the "Successor Master Servicer") reasonably acceptable to the Insurer (for so
long as it is the Controlling Party), and such Successor Master Servicer shall
accept its appointment by a written assumption in a form reasonably acceptable
to the Indenture Trustee and the Insurer (for so long as it is the Controlling
Party). In the event that a Successor Master Servicer has not been appointed or
has not accepted its appointment at the time when the Master Servicer ceases to
act as Master Servicer, the Indenture Trustee without further action shall
automatically be appointed the Successor Master Servicer. The Indenture Trustee
may, with the consent of the Insurer (for so long as it is the Controlling
Party), delegate any of its servicing obligations to an Affiliate or agent in
accordance with Section 9.5. Notwithstanding the foregoing, the Indenture
Trustee shall, if it is legally unable so to act, petition a court of competent
jurisdiction to appoint any established institution qualifying as an Eligible
Servicer as the Successor Master Servicer hereunder. The Indenture Trustee or
the Successor Master Servicer, as the case may be, shall be the successor in all
respects to the Master Servicer in its capacity as servicer under this Agreement
and the transactions set forth or provided for in this Agreement, and shall be
subject to all the rights, responsibilities, restrictions, duties, liabilities
and termination provisions relating thereto placed on the Master Servicer by the
terms and provisions of this Agreement, except as otherwise stated herein. The
Indenture Trustee or the Successor Master Servicer, as the case may be, shall
take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. The Successor Master Servicer shall be subject
to termination under Section 10.2 upon the occurrence of any Master Servicer
Termination Event applicable to it as Master Servicer.

               (b)     Subject to Section 9.6, no provision of this Agreement
shall be construed as relieving the Indenture Trustee of its obligation to
succeed as successor Master Servicer upon the termination of the Master Servicer
pursuant to Section 10.2 or the resignation of the Master Servicer pursuant to
Section 9.6.

               (c)     Any Successor Master Servicer shall be entitled to such
compensation (whether payable out of the Collection Account or otherwise) equal
to the compensation the Master Servicer would have been entitled to under this
Agreement if the Master Servicer had not resigned or been terminated hereunder
or such other amount

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as may be agreed to by the Successor Master Servicer and the Insurer (for so
long as it is the Controlling Party). In addition, any Successor Master Servicer
shall be entitled to reasonable transition expenses incurred in acting as
Successor Master Servicer payable by the outgoing Master Servicer, and to the
extent such transition expenses have not been paid by the outgoing Master
Servicer, such Successor Master Servicer shall be entitled to reimbursement for
such reasonable expenses pursuant to the Series Supplement.

          SECTION 10.4.  NOTIFICATION TO NOTEHOLDERS AND CERTIFICATEHOLDERS.
Upon any termination of, or appointment of a successor to, the Master Servicer
the Indenture Trustee shall give prompt written notice thereof to each
Noteholder.

          SECTION 10.5.  WAIVER OF PAST DEFAULTS. The Controlling Party or, with
the consent of the Controlling Party, a majority of the Noteholders may, on
behalf of all Securityholders, waive any default by the Seller or the Master
Servicer in the performance of their obligations hereunder and its consequences,
except the failure to make any distributions required to be made to Noteholders
or to make any required deposits of any amounts to be so distributed. Upon any
such waiver of a past default, such default shall cease to exist, and any
default arising therefrom shall be deemed to have been remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other default or impair any right consequent thereon except to the extent
expressly so waived.

          SECTION 10.6.  SUCCESSOR TO MASTER SERVICER. (a) The Indenture
Trustee, in its capacity as successor to the Master Servicer, shall perform such
duties and only such duties as are specifically set forth in this Agreement and
each Related Document with respect to the assumption of any servicing duties and
no implied covenants or obligations shall be read into this Agreement against
the Indenture Trustee.

               (b)     In the absence of bad faith or negligence on its part,
the Indenture Trustee may conclusively rely as to the truth of the statements
and the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Indenture Trustee and conforming to the requirements
of this Agreement and the Series Supplement; but in the case of any such
certificates or opinions, which by any provision hereof are specifically
required to be furnished to the Indenture Trustee, the Indenture Trustee shall
be under a duty to examine the same and to determine whether or not they conform
to the requirements of this Agreement and the Series Supplement.

               (c)     The Indenture Trustee shall have no liability for any
actions taken or omitted by the terminated Master Servicer.

                                   ARTICLE XI

                                   TERMINATION

          SECTION 11.1.  OPTIONAL PURCHASE OF ALL RECEIVABLES. (a) To the
extent and under the circumstances provided in the Series Supplement, the Master

                                       55
<Page>

Servicer shall have the option to effect a "clean-up" redemption or purchase of
the Series Trust Estate.

               (b)     Upon any sale of the assets included in the Series Trust
Estate permitted by the Series Supplement, the Master Servicer shall instruct
the Indenture Trustee to deposit the proceeds from such sale after all payments
and reserves therefrom (including the expenses of such sale) have been made in
the Collection Account.

               (c)     Notice of any termination of the Trust shall be given by
the Master Servicer to the Owner Trustee, the Indenture Trustee and the Insurer
as soon as practicable after the Master Servicer has received notice thereof.

               (d)     Following the satisfaction and discharge of the
Indenture, the payment in full of the principal of and interest on the Notes,
the satisfaction of all payment obligations under the Basic Documents and the
Insurance Agreement and termination of any Series Support (as provided therein),
the Certificateholders will succeed to the rights of the Noteholders hereunder
and the Owner Trustee will succeed to the rights of, and assume the obligations
of, the Indenture Trustee pursuant to this Agreement.

                                   ARTICLE XII

                  ADMINISTRATIVE DUTIES OF THE MASTER SERVICER

          SECTION 12.1.  ADMINISTRATIVE DUTIES.

               (a)     DUTIES WITH RESPECT TO THE INDENTURE. The Master Servicer
shall perform all its duties and the duties of the Issuer under the Indenture.
In addition, the Master Servicer shall consult with the Owner Trustee as the
Master Servicer deems appropriate regarding the duties of the Issuer under the
Indenture. The Master Servicer shall monitor the performance of the Issuer and
shall advise the Owner Trustee when action is necessary to comply with the
Issuer's duties under the Indenture. The Master Servicer shall prepare for
execution by the Issuer or shall cause the preparation by other appropriate
Persons of all such documents, reports, filings, instruments, certificates and
opinions as it shall be the duty of the Issuer to prepare, file or deliver
pursuant to the Indenture. In furtherance of the foregoing, the Master Servicer
shall take all necessary action that is the duty of the Issuer to take pursuant
to the Indenture, including, without limitation, pursuant to Sections 2.7, 3.3,
3.4, 3.5, 3.6, 3.7, 3.9, 3.10, 3.17, 7.3, 8.3, 9.2, 9.3, 11.1 and 11.15 of the
Indenture.

               (b)     Duties with Respect to the Issuer.

                       (i)    In addition to the duties of the Master Servicer
               set forth in this Agreement or any of the Related Documents, the
               Master Servicer shall perform such calculations and shall prepare
               for execution by the Issuer or the Owner Trustee, or shall cause
               the

                                       56
<Page>

               preparation by other appropriate Persons of all such documents,
               reports, filings, instruments, certificates and opinions as it
               shall be the duty of the Issuer or the Owner Trustee, to prepare,
               file or deliver pursuant to this Agreement or any of the Related
               Documents or under state and federal tax and securities laws, and
               at the request of the Owner Trustee shall take all appropriate
               action that it is the duty of the Issuer to take pursuant to this
               Agreement or any of the Basic Documents, including, without
               limitation, pursuant to Sections 2.6 and 2.11 of the Trust
               Agreement. In accordance with the directions of the Issuer or the
               Owner Trustee, the Master Servicer shall administer, perform or
               supervise the performance of such other activities in connection
               with the Owner Trust Estate (including the Related Documents) as
               are not covered by any of the foregoing provisions and as are
               expressly requested by the Issuer or the Owner Trustee and are
               reasonably within the capability of the Master Servicer.

                       (ii)   Notwithstanding anything in this Agreement or any
               of the Basic Documents to the contrary, the Master Servicer shall
               be responsible for promptly notifying the Owner Trustee and the
               Indenture Trustee in the event that any withholding tax is
               imposed on the Issuer's payments (or allocations of income) to a
               Certificateholder as contemplated by this Agreement. Any such
               notice shall be in writing and specify the amount of any
               withholding tax required to be withheld by the Owner Trustee or
               the Indenture Trustee pursuant to such provision.

                       (iii)  Notwithstanding anything in this Agreement or the
               Basic Documents to the contrary, the Master Servicer shall be
               responsible for performance of the duties of the Issuer and the
               Seller set forth in Section 5.1(a), (b), (c) and (d) of the Trust
               Agreement with respect to, among other things, accounting and
               reports to Owners (as defined in the Trust Agreement); PROVIDED,
               HOWEVER, that once prepared by the Master Servicer, the Depositor
               shall retain responsibility under Section 5.1(b) of the Trust
               Agreement for the distribution of the Schedule K-1s necessary to
               enable each Certificateholder to prepare its federal and state
               income tax returns.

                       (iv)   The Master Servicer shall perform the duties of
               the Depositor specified in Section 10.2 of the Trust Agreement
               required to be performed in connection with the resignation or
               removal of the Owner Trustee, and any other duties expressly
               required to be performed by the Master Servicer under this
               Agreement or any of the Related Documents.

                                       57
<Page>

                       (v)    The Master Servicer, on behalf of the Seller,
               shall direct the Issuer to request the tender of all or a portion
               of the Notes in accordance with the Indenture or the Series
               Supplement.

                       (vi)   In carrying out the foregoing duties or any of its
               other obligations under this Agreement, the Master Servicer may
               enter into transactions with or otherwise deal with any of its
               Affiliates; PROVIDED, HOWEVER, that the terms of any such
               transactions or dealings shall be in accordance with any
               directions received from the Issuer and shall be, in the Master
               Servicer's opinion, no less favorable to the Issuer in any
               material respect.

               (c)     TAX MATTERS. The Master Servicer shall prepare and file,
or cause to be prepared and filed, on behalf of the Seller, all tax returns, tax
elections, financial statements and such annual or other reports of the Issuer
as are necessary for preparation of tax reports as provided in Article V of the
Trust Agreement, including without limitation forms 1099 and 1066. All tax
returns will be signed by the Seller.

               (d)     NON-MINISTERIAL MATTERS. With respect to matters that in
the reasonable judgment of the Master Servicer are non-ministerial, the Master
Servicer shall not take any action pursuant to this Article XII unless within a
reasonable time before the taking of such action, the Master Servicer shall have
notified the Owner Trustee, the Insurer and the Indenture Trustee of the
proposed action and the Owner Trustee, the Insurer (for so long as it is the
Controlling Party) or the Indenture Trustee shall not have withheld consent or
provided an alternative direction. For the purpose of the preceding sentence,
"non-ministerial matters" shall include:

     (A)  the initiation of any claim or lawsuit by the Issuer and the
          compromise of any action, claim or lawsuit brought by or against the
          Issuer (other than in connection with the collection of the
          Receivables);

     (B)  the appointment of successor Note Registrars, successor Note Paying
          Agents and successor Indenture Trustees pursuant to the Indenture or
          the consent to the assignment by the Note Registrar, Note Paying Agent
          or Indenture Trustee of its obligations under the Indenture; and

     (C)  the removal of the Indenture Trustee.

               (e)     EXCEPTIONS. Notwithstanding anything to the contrary in
this Agreement, except as expressly provided herein or in the other Basic
Documents, the Master Servicer, in its capacity hereunder, shall not be
obligated to, and shall not, (1) make any payments to the Noteholders or
Certificateholders under the Basic Documents, (2) sell any portion of the Series
Trust Estate pursuant to the Basic Documents, (3) take any other action that the
Issuer directs the Master Servicer not to take on its behalf or (4) in
connection with its duties hereunder assume any indemnification obligation of
any other Person.

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<Page>

               (f)     Neither the Indenture Trustee nor any successor Master
Servicer shall be responsible for any obligations or duties of a predecessor
Master Servicer under Section 12.1.

          SECTION 12.2.  RECORDS. The Master Servicer shall maintain appropriate
books of account and records relating to services performed under this
Agreement, which books of account and records shall be accessible for inspection
by the Issuer and the Indenture Trustee at any time during normal business
hours.

          SECTION 12.3.  ADDITIONAL INFORMATION TO BE FURNISHED TO THE ISSUER.
The Master Servicer shall furnish to the Issuer, the Indenture Trustee and the
Insurer (for so long as it is the Controlling Party), from time to time such
additional information regarding the Owner Trust Estate as the Issuer, the
Indenture Trustee and the Insurer (for so long as it is the Controlling Party)
shall reasonably request.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

          SECTION 13.1.  AMENDMENTS. (a) This Agreement may be amended by the
parties hereto at any time when no Securities are outstanding and all amounts
payable to the Insurer pursuant to the Insurance Agreement have been paid in
full without the requirement of any consents or the satisfaction of any
conditions set forth below.

               (b)     Except as otherwise provided in the Series Supplement,
this Agreement may be amended from time to time by the parties hereto, by a
written instrument signed by each of the parties hereto, with the prior written
consent of the Insurer (for so long as it is the Controlling Party) but without
the consent of any of the Securityholders, provided that (i) an Opinion of
Counsel for the Seller (which Opinion of Counsel may, as to factual matters,
rely upon Officers' Certificates of the Seller or the Master Servicer) is
addressed and delivered to the Indenture Trustee and the Insurer, dated the date
of any such amendment, to the effect that the conditions precedent to any such
amendment, including those of Section 13.2(h) hereof, have been satisfied and
(ii) the Seller shall have delivered to the Indenture Trustee and the Insurer,
an Officer's Certificate dated the date of any such amendment, stating that the
Seller reasonably believes that such amendment will not have a material adverse
effect on the rights of the Noteholders or the Insurer; PROVIDED, HOWEVER, that
no such amendment shall materially and adversely affect the Insurer without the
prior written consent of the Insurer.

               (c)     Except as otherwise provided in the Series Supplement,
subject to Section 13.2(h) hereof, this Agreement may also be amended from time
to time by the Master Servicer, the Seller and the Indenture Trustee, with the
prior written consent of the Insurer and the Administrative Agent, where one
exists, or otherwise the Managing Agents, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Securityholders;
PROVIDED, HOWEVER, that no such amendment shall (i) reduce in any manner the
amount of or delay the timing of any distributions to be made to

                                       59
<Page>

Securityholders or deposits of amounts to be so distributed or the amount
available under any Series Support without the consent of each affected
Securityholder, (ii) change the definition of or the manner of calculating the
interest of any Securityholder without the consent of each affected
Securityholder, or (iii) reduce the aforesaid percentage of Noteholders required
to consent to any such amendment.

          Promptly after the execution of any such amendment or supplement, the
Indenture Trustee shall furnish written notification of the substance of such
amendment or supplement to each Securityholder.

          It shall not be necessary for the consent of Certificateholders or
Noteholders pursuant to this Section to approve the particular form of any
amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents (and any other consents
of Noteholders or Certificateholders provided for in this Agreement) and of
evidencing the authorization of any action by Noteholders or Certificateholders
shall be subject to such reasonable requirements as the Indenture Trustee or the
Owner Trustee, as applicable, may prescribe, including the establishment of
record dates.

          The Owner Trustee and the Indenture Trustee may, but shall not be
obligated to, enter into any amendment which affects the Issuer's, the Owner
Trustee's or the Indenture Trustee's, as applicable, own rights, duties or
immunities under this Agreement or otherwise.

          Prior to the execution of any amendment to this Agreement, the
Indenture Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and that all conditions precedent to the execution and
delivery of such amendment have been satisfied.

          SECTION 13.2.  PROTECTION OF TITLE TO SERIES TRUST ESTATE. (a) The
Seller shall execute and file such financing statements and cause to be executed
and filed such continuation statements, all in such manner and in such places as
may be required by law fully to preserve, maintain and protect the interest of
the Issuer in the Owner Trust Estate and the Indenture Trustee in the Series
Trust Estate.

               (b)     Neither the Seller nor the Master Servicer shall change
its name, identity or corporate structure in any manner that would, could or
might make any financing statement or continuation statement filed in accordance
with paragraph (a) above seriously misleading within the meaning of Sections
9-503(a), 9-506 and 9-507 of the UCC, unless it shall have given the Insurer,
the Owner Trustee and the Indenture Trustee at least thirty days' prior written
notice thereof and shall have promptly filed appropriate amendments to all
previously filed financing statements or continuation statements.

               (c)     Each of the Seller and the Master Servicer shall have an
obligation to give the Insurer, the Owner Trustee and the Indenture Trustee
prompt notice

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<Page>

of any change in its state of incorporation if, as a result of such change, the
applicable provisions of the UCC would require the filing of any amendment of
any previously filed financing or continuation statement or of any new financing
statement and shall promptly file any such amendment. The Master Servicer shall
at all times maintain each office from which it shall service Receivables within
the United States of America.

               (d)     The Master Servicer shall maintain accounts and records
as to each Receivable accurately and in sufficient detail to permit (i) the
reader thereof to know at any time the status of such Receivable, including
payments and recoveries made and payments owing (and the nature of each) and
(ii) reconciliation between payments or recoveries on (or with respect to) each
Receivable and the amounts from time to time deposited in the Collection Account
in respect of such Receivable.

               (e)     The Master Servicer shall maintain or cause to be
maintained, a computer system so that, from and after the time of sale under
this Agreement and each Transfer Agreement of the Receivables to the Issuer,
such master computer records (including any backup archives) that refer to a
Receivable shall indicate clearly the interest of the Trust in such Receivable
and that such Receivable is owned by the Trust and such Receivable has been
pledged pursuant to the Indenture. Indication of the Trust's and the Indenture
Trustee's interest in a Receivable shall be deleted from or modified on such
computer systems when, and only when, the related Receivable shall have been
paid in full, repurchased by HAFC, any Affiliate of HAFC that is the seller
under a Master Receivables Purchase Agreement, Household Finance Corporation or
the Seller or otherwise disposed of by the Issuer in accordance with the terms
of this Agreement.

               (f)     If at any time the Seller, HAFC or any Affiliate of HAFC
that is the seller under a Master Receivables Purchase Agreement shall propose
to sell, grant a security interest in or otherwise transfer any interest in
motor vehicle receivables to any prospective purchaser, lender or other
transferee, the Master Servicer shall give to such prospective purchaser, lender
or other transferee computer tapes, records or printouts (including any restored
from backup archives) that, if they shall refer in any manner whatsoever to any
Receivable, shall indicate clearly that such Receivable has been sold and is
owned by the Trust unless such Receivable has been paid in full, been
repurchased by HAFC, any Affiliate of HAFC that is the seller under a Master
Receivables Purchase Agreement, Household Finance Corporation or the Seller or
has otherwise been disposed of by the Issuer in accordance with the terms of
this Agreement.

               (g)     Upon request, the Master Servicer shall furnish or cause
to be furnished to, the Insurer, the Owner Trustee or the Indenture Trustee,
within five Business Days, a list of all Receivables (by contract number) then
held as part of the Series Trust Estate, together with a reconciliation of such
list to the related Schedule of Receivables and to any Master Servicer's
Certificates furnished before such request indicating removal of Receivables
from the Series Trust Estate. The Indenture Trustee shall hold any such list and
Schedule of Receivables for examination by interested parties during normal
business hours at the Corporate Trust Office upon reasonable notice by such
Persons of their desire to conduct an examination.

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               (h)     The Master Servicer shall deliver to the Insurer, the
Owner Trustee and the Indenture Trustee:

          (1)  simultaneously with the execution and delivery of the Agreement
     and, if required pursuant to Section 13.1, of each amendment, an Opinion of
     Counsel stating that, in the opinion of such Counsel, in form and substance
     reasonably satisfactory to the addressees of such Opinion, either (A) all
     financing statements and continuation statements have been executed and
     filed that are necessary fully to preserve and protect the interest of the
     Trust and the Indenture Trustee in the Receivables then held as part of the
     Series Trust Estate, or (B) no such action shall be necessary to preserve
     and protect such interest or (C) any action which is necessary to preserve
     and protect such interest during the following 12-month period; and

          (2)  within 90 days after the beginning of each calendar year
     beginning with the first calendar year following the Closing Date dated as
     of a date during such 90-day period, stating that, in the opinion of such
     counsel, either (A) all financing statements and continuation statements
     have been executed and filed that are necessary fully to preserve and
     protect the interest of the Trust and the Indenture Trustee in the Series
     Trust Estate or (B) no such action shall be necessary to preserve and
     protect such interest.

          Each Opinion of Counsel referred to in clause (1) or (2) above shall
specify any action necessary (as of the date of such opinion) to be taken in the
following year to preserve and protect such interest.

          SECTION 13.3.  NOTICES. All demands, notices and communications upon
or to the Seller, the Insurer, the Master Servicer, the Owner Trustee, the
Indenture Trustee or any other Person entitled to receive a notice, shall be in
writing, personally delivered, or mailed by certified mail, sent by confirmed
telecopier transmission, or at the consent of the receiving party by electronic
mail, and shall be deemed to have been duly given upon receipt at the address
specified in the Series Supplement. Any notice required or permitted to be
mailed to a Noteholder or Certificateholder shall be given by first class mail,
postage prepaid, at the address of such Holder as shown in the Certificate
Register or Note Register, as applicable. Any notice so mailed within the time
prescribed in the Agreement shall be conclusively presumed to have been duly
given, whether or not the Certificateholder or Noteholder shall receive such
notice.

          SECTION 13.4.  ASSIGNMENT. This Agreement shall inure to the benefit
of and be binding upon the parties hereto, the Insurer and their respective
successors and permitted assigns. Notwithstanding anything to the contrary
contained herein, except as provided in Sections 8.4 and 9.3 and as provided in
the provisions of this Agreement concerning the resignation of the Master
Servicer, this Agreement may not be assigned by the Seller or the Master
Servicer without the prior written consent of the Insurer, the Owner Trustee,
the Indenture Trustee and the Administrative Agent, where one exists, or
otherwise, the Managing Agents. In the event that a successor Issuer is formed
as permitted by the Series Supplement, such Issuer shall succeed to all of the
rights and

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<Page>

obligations of the predecessor Issuer hereunder; and all references to the
Issuer hereunder shall thereafter be deemed to be references to such successor
Issuer.

          SECTION 13.5.  LIMITATIONS ON RIGHTS OF OTHERS. The provisions of this
Agreement are solely for the benefit of the parties hereto and for the benefit
of the Certificateholders (including the Seller), the Indenture Trustee, the
Owner Trustee, any Support Provider and the Secured Parties, as third-party
beneficiaries. Each Support Provider shall be entitled to rely upon and directly
enforce such provisions of this Agreement, the Series Supplement and the
Indenture so long as no default with respect to such Support Provider shall have
occurred and be continuing; provided that nothing herein shall affect or limit
the Support Provider's rights as subrogee to the Noteholders. Nothing in this
Agreement or in the Series Supplement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

          SECTION 13.6.  SEVERABILITY. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          SECTION 13.7.  SEPARATE COUNTERPARTS. This Agreement and each Transfer
Agreement may be executed by the parties hereto in separate counterparts, each
of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.

          SECTION 13.8.  HEADINGS. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

          SECTION 13.9.  GOVERNING LAW. THIS AGREEMENT AND EACH TRANSFER
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS WHICH WOULD REQUIRE
THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

          SECTION 13.10. ASSIGNMENT TO INDENTURE TRUSTEE. The Seller hereby
acknowledges and consents to any mortgage, pledge, assignment and grant of a
security interest by the Issuer to the Indenture Trustee pursuant to the
Indenture, as supplemented by the Series Supplement for the benefit of the
Secured Parties of all right, title and interest of the Issuer in, to and under
the Series Trust Estate.

          SECTION 13.11. NONPETITION COVENANTS. (a) Notwithstanding any
prior termination of this Agreement or the Series Supplement, none of the Master
Servicer, the

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Seller, the Administrative Agent, any Managing Agent or any Secured Party shall,
prior to the date which is one year and one day after the termination of this
Agreement and the payment in full of all obligations of the Issuer under the
Basic Documents, acquiesce, petition or otherwise invoke or cause the Issuer to
invoke the process of any court or government authority for the purpose of
commencing or sustaining a case against the Issuer under any federal or state
bankruptcy, insolvency or similar law or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the
Issuer or any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Issuer.

               (b)     Notwithstanding any prior termination of this Agreement
or the Series Supplement, none of the Master Servicer, any Managing Agent, the
Administrative Agent or any Secured Party shall, prior to the date that is one
year and one day after the termination of this Agreement, acquiesce to, petition
or otherwise invoke or cause the Seller to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against
the Seller under any federal or state bankruptcy, insolvency or similar law,
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator,
or other similar official of the Seller or any substantial part of its property,
or ordering the winding up or liquidation of the affairs of the Seller.

          SECTION 13.12. LIMITATION OF LIABILITY OF THE OWNER TRUSTEE AND THE
INDENTURE TRUSTEE. (a) Notwithstanding anything contained herein to the
contrary, this Agreement and the Series Supplement have been countersigned by
the Owner Trustee not in its individual capacity but solely in its capacity as
Owner Trustee of the Issuer and in no event shall the Owner Trustee in its
individual capacity or, except as expressly provided in the Trust Agreement, as
Owner Trustee have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder or in any of the
certificates, notices or agreements delivered pursuant hereto, as to all of
which recourse shall be had solely to the assets of the Issuer. For all purposes
of this Agreement and the Series Supplement, in the performance of its duties or
obligations hereunder or in the performance of any duties or obligations of the
Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

               (b)     Notwithstanding anything contained herein to the
contrary, this Agreement has been executed and delivered by the Person acting as
the Indenture Trustee not in its individual capacity but solely as Indenture
Trustee and in no event shall such Person have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets
of the Issuer.

          SECTION 13.13. LIMITATION OF LIABILITY OF ISSUER. The Issuer shall
have no liability to the Master Servicer except for payment of the Servicing Fee
and reimbursement of repossession and liquidation expenses. The Issuer shall
have no obligation to indemnify the Master Servicer for costs or expenses,
except with respect to the preceding sentence.

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          SECTION 13.14. INDEPENDENCE OF THE MASTER SERVICER. For all purposes
of this Agreement, the Master Servicer shall be an independent contractor and
shall not be subject to the supervision of the Issuer, the Indenture Trustee or
the Owner Trustee with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by this
Agreement or the Series Supplement, the Master Servicer shall have no authority
to act for or represent the Issuer or the Owner Trustee in any way and shall not
otherwise be deemed an agent of the Issuer or the Owner Trustee.

          SECTION 13.15. NO JOINT VENTURE. Nothing contained in this Agreement
or the Series Supplement (i) shall constitute the Master Servicer and either of
the Issuer or the Owner Trustee as members of any partnership, joint venture,
association, syndicate, unincorporated business or other separate entity, (ii)
shall be construed to impose any liability as such on any of them or (iii) shall
be deemed to confer on any of them any express, implied or apparent authority to
incur any obligation or liability on behalf of the others.

          SECTION 13.16. THIRD-PARTY BENEFICIARY. The parties hereto agree that
the Insurer is a third-party beneficiary hereof.

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          IN WITNESS WHEREOF, the parties hereto have caused this Master Sale
and Servicing Agreement to be duly executed and delivered by their respective
duly authorized officers as of the day and the year first above written.

                                    HOUSEHOLD AUTOMOTIVE TRUST 2002-3
                                         By:  Wilmington Trust Company, not in
                                         its individual capacity but solely as
                                         Owner Trustee on behalf of the Trust,

                                         by   /s/ Janel R. Havrilla
                                              ----------------------------------
                                              Name:  Janel R. Havrilla
                                              Title: Financial Services Officer

                                    HOUSEHOLD AUTO RECEIVABLES CORPORATION,
                                         as Seller,

                                         by   /s/ Steven H. Smith
                                              ----------------------------------
                                              Name:  Steven H. Smith
                                              Title: Vice President & Assistant
                                                     Treasurer

                                    HOUSEHOLD FINANCE CORPORATION,
                                         as Master Servicer,

                                         by   /s/ B. B. Moss, Jr.
                                              ----------------------------------
                                              Name:  B. B. Moss, Jr.
                                              Title: Vice President & Treasurer

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

                                         by   /s/ Nancie J. Arvin
                                              ----------------------------------
                                              Name:  Nancie J. Arvin
                                              Title: Vice President

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                                                                       EXHIBIT A

                           FORM OF TRANSFER AGREEMENT

          TRANSFER No. _____________ of Receivables dated as of ______________
pursuant to the Master Sale and Servicing Agreement dated as of November 18,
2002 (the "Sale and Servicing Agreement"), among HOUSEHOLD AUTOMOTIVE TRUST
2002-3, a Delaware statutory trust (the "Issuer" or the "Trust"), HOUSEHOLD AUTO
RECEIVABLES CORPORATION, a Nevada corporation (the "Seller"), HOUSEHOLD FINANCE
CORPORATION, a Delaware corporation (the "Master Servicer"), and U.S. BANK
NATIONAL ASSOCIATION, a national banking association in its capacity as
Indenture Trustee (the "Indenture Trustee").

                              W I T N E S S E T H:

          WHEREAS pursuant to the Sale and Servicing Agreement, the Seller
wishes to convey the Receivable to the Issuer; and

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

          NOW, THEREFORE, the Issuer, the Seller, the Master Servicer and the
Indenture Trustee hereby agree as follows:

          1.   DEFINED TERMS. Capitalized terms used herein shall have the
meanings ascribed to them in the Sale and Servicing Agreement unless otherwise
defined herein.

          "Cutoff Date" shall mean, with respect to the Receivables conveyed
hereby, the close of business on _______________, ____.

          "Transfer Date" shall mean. with respect to the Receivables conveyed
hereby, _____________, _____.

          2.   LIST OF  RECEIVABLES.  Annexed  hereto is  Schedule A listing
the Receivables that constitute the Receivables to be conveyed pursuant to the
Sale and Servicing Agreement and this Agreement on the Transfer Date.

          3.   CONVEYANCE OF RECEIVABLES. The Seller does hereby sell, transfer,
assign, set over and otherwise convey to the Issuer, without recourse (except as
expressly PROVIDED in the Sale and Servicing Agreement), all right, title and
interest of the Seller in and to:

          (a)  each and every Receivable listed on Schedule A and all monies
     paid or payable thereon or in respect thereof after the related Cutoff Date
     (including amounts due on or before the related Cutoff Date but received by

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     HAFC (or any predecessor or Affiliate of HAFC, as applicable) or Seller on
     or after such date);

          (b)  the security interests in the related Financed Vehicles granted
     by Obligors pursuant to such Receivables and any other interest of the
     Seller in such Financed Vehicles;

          (c)  all rights of the Seller against Dealers pursuant to Dealer
     Agreements or Dealer Assignments related to such Receivables;

          (d)  any proceeds and the right to receive proceeds with respect to
     such Receivables repurchased by a Dealer pursuant to a Dealer Agreement;

          (e)  all rights of the Seller under any Service Contracts on the
     related Financed Vehicles;

          (f)  any proceeds and the right to receive proceeds with respect to
     such Receivables from claims on any physical damage, credit life or
     disability insurance policies covering the related Financed Vehicles or
     Obligors, including rebates of insurance premiums relating to such
     Receivables;

          (g)  all items contained in the Receivables Files with respect to such
     Receivables and any and all other documents that HAFC, any Affiliate of
     HAFC that is the seller under a Master Receivables Purchase Agreement, the
     Seller or the Master Servicer, as applicable, keeps on file in accordance
     with its customary procedures relating to the related Receivables, the
     related Financed Vehicles or Obligors;

          (h)  all funds on deposit from time to time in the Trust Accounts
     (including all investments and proceeds thereof);

          (i)  all property (including the right to receive future Net
     Liquidation Proceeds) that secures each related Receivable and that has
     been acquired by or on behalf of the Seller or the Trust pursuant to
     liquidation of such Receivable;

          (j)  all of Seller's right, title and interest in its rights and
     benefits, but none of its obligations or burdens, under each of the Master
     Receivables Purchase Agreements and the Receivables Purchase Agreement
     Supplements, including the delivery requirements, representations and
     warranties and the cure and repurchase obligations of HAFC, any Affiliate
     of HAFC that is the seller under a Master Receivables Purchase Agreement or
     Household Finance Corporation, as applicable, under each of the Master
     Receivables Purchase Agreements and related Receivables Purchase Agreement
     Supplements, on or after the related Cutoff Date;

          (k)  on the initial Transfer Date only, one share of Class SV
     Preferred Stock of the Seller together with the exclusive right to vote
     such share; and

                                       A-2
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          (l)  all present and future claims, demands, causes and chooses in
     action in respect of any or all of the foregoing and all payments on or
     under and all proceeds of every kind and nature whatsoever in respect of
     any or all of the foregoing, including all proceeds of the conversion,
     voluntary or involuntary, into cash or other liquid property, all cash
     proceeds, accounts, accounts receivable, notes, drafts, acceptances,
     chattel paper, checks, deposit accounts, insurance proceeds, condemnation
     awards, rights to payment of any and every kind and other forms of
     obligations and receivables, instruments and other property which at any
     time constitute all or part of or are included in the proceeds of any of
     the foregoing.

          4.   REPRESENTATIONS AND WARRANTIES OF THE SELLER. The Seller hereby
represents and warrants to the Issuer as of the Transfer Date that:

          (a)  Each of its representations set forth in Sections 3.1 and 8.1 of
     the Sale and Servicing Agreement are true and correct as if made on the
     Transfer Date, except if specified to be true as of an earlier date, in
     which case, such representations and warranties are true as of such earlier
     date.

          (b)  The aggregate of the Principal Balances of the Receivables listed
     on Schedule A annexed hereto and conveyed to the Issuer pursuant to this
     Agreement as of the Cutoff Date is $_________.

          5.   CONDITIONS PRECEDENT. The obligation of the Issuer to acquire the
Receivables hereunder is subject to the satisfaction, on or prior to the
Transfer Date, of the following conditions precedent:

          REPRESENTATIONS AND WARRANTIES. Each of the representations and
     warranties made by the Seller in Section 4 of this Agreement shall be true
     and correct as of the Transfer Date.

          SALE AND SERVICING AGREEMENT CONDITIONS. Each of the conditions set
     forth in Section 2.1(b) to the Sale and Servicing Agreement shall have been
     satisfied.

          ADDITIONAL INFORMATION. The Seller shall have delivered to the Issuer
     such information as was reasonably requested by the Issuer to satisfy
     itself as to the accuracy of the representations and warranties set forth
     in Section 4 of this Agreement.

          6.   RATIFICATION OF AGREEMENT. As supplemented by this Agreement, the
Sale and Servicing Agreement is in all respects ratified and confirmed and the
Sale and Servicing Agreement as so supplemented by this Agreement shall be read,
taken and construed as one and the same instrument.

          7.   COUNTERPARTS. This Agreement may be executed in two or more
counterparts (and by different parties in separate counterparts), each of which
shall be an original but all of which together shall constitute one and the same
instrument.

                                       A-3
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          8.   GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                       A-4
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          IN WITNESS WHEREOF, the Issuer, the Seller and the Master Servicer
have caused this Agreement to be duly executed and delivered by their respective
duly authorized officers as of day and the year first above written.

                                        HOUSEHOLD AUTOMOTIVE TRUST 2002-3
                                        By Wilmington Trust Company, not in
                                        its individual capacity but solely as
                                        Owner Trustee on behalf of the Trust,

                                        by
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HOUSEHOLD AUTO RECEIVABLES CORPORATION,
                                        Seller,

                                        by
                                            ------------------------------------
                                            Name:
                                            Title:

                                        HOUSEHOLD FINANCE CORPORATION,
                                        Master Servicer,

                                        by
                                            ------------------------------------
                                            Name:
                                            Title:

Acknowledged and Accepted:

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

by
  ------------------------------
  Name:
  Title:

                                       A-5

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