Document:

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                                                                EXHIBIT 10.12(a)

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, made and entered into as of March 1, 2002 by and
between Household International, Inc., a Delaware corporation, (hereinafter
called the "Corporation") and William F. Aldinger (hereinafter called the
"Executive").

                                WITNESSETH THAT:

         WHEREAS, the Executive is currently employed by the Corporation under
an employment agreement dated January 1, 1999; and

         WHEREAS, the Corporation desires to continue to employ the Executive as
its Chairman and Chief Executive Officer, and the Executive desires to continue
in such employment, on amended and restated terms and conditions;

         NOW, THEREFORE, the Corporation and the Executive, each intending to be
legally bound, hereby mutually covenant and agree as follows:

         1.       Employment and Term.

                  (a) Employment. The Corporation shall continue to employ the
Executive as the Chairman and Chief Executive Officer of the Corporation, and
the Executive shall so serve, for the term set forth in Paragraph 1(b).

                  (b) Term. The initial term of the Executive's employment under
this Agreement shall commence as of March 1, 2002 (the "Effective Date") and end
on August 31, 2003, subject to the extension of such term as hereinafter
provided and subject to earlier termination as provided in Paragraph 7, below.
Beginning on March 1, 2002, the term of this Agreement shall be extended
automatically for one (1) additional day for each day which has then elapsed
since March 1, 2002, unless, at any time after March 1, 2002, either the Board
of Directors of the Corporation (the "Board"), on behalf of the Corporation, or
the Executive gives written notice to the other that such automatic extension of
the term of this Agreement shall cease. Any such notice shall be effective
immediately upon delivery. The initial term of this Agreement, plus any
extension by operation of this Paragraph 1, shall be hereinafter referred to as
the "Term."

          2.      Duties. During the period of employment as provided in
Paragraph 1(b) hereof, the Executive shall serve as Chairman and Chief Executive
Officer of the Corporation and have all powers and duties consistent with such
position, subject to the reasonable direction of the Board. The Executive shall
also continue to serve as a member of the Board if elected as such. The
Executive shall devote substantially his entire time during reasonable business
hours (reasonable sick leave and vacations excepted) and best efforts to fulfill
faithfully, responsibly and to the best of his ability his duties hereunder.
However, the

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Executive may, with the approval of the Board, which shall not be withheld
unreasonably, serve on corporate, civic and/or charitable boards and committees.

         3.       Salary.

                  (a) Base Salary. For services performed by the Executive for
the Corporation pursuant to this Agreement during the period of employment as
provided in Paragraph 1(b) hereof, the Corporation shall pay the Executive a
base salary of $1,000,000 per year, payable in substantially equal installments
in accordance with the Corporation's regular payroll practices. The Executive's
base salary (with any increases under paragraph (b), below) shall not be subject
to reduction. Any compensation which may be paid to the Executive under any
additional compensation or incentive plan of the Corporation or which may be
otherwise authorized from time to time by the Board (or an appropriate committee
thereof) shall be in addition to the base salary to which the Executive shall be
entitled under this Agreement.

                  (b) Salary Increases. During the period of employment as
provided in Paragraph 1(b) hereof, the base salary of the Executive shall be
reviewed no less frequently than annually by the Board or the Compensation
Committee of the Board to determine whether or not the same should be increased
in light of the duties and responsibilities of the Executive and the performance
thereof, and if it is determined that an increase is merited, such increase
shall be promptly put into effect and the base salary of the Executive as so
increased shall constitute the base salary of the Executive for purposes of
Paragraph 3(a).

         4.       Annual Bonuses. For each calendar year during the term of
employment, the Executive shall be eligible to receive in cash an annual
performance bonus based upon the terms of the Corporation's bonus plan from time
to time for senior executives, as adopted by the Board and administered by the
Compensation Committee.

         5.       Equity Incentive Compensation. During the term of employment
hereunder the Executive shall be eligible to participate, in the manner and to
the extent approved by the Board or the Compensation Committee, in any
equity-based incentive compensation plan or program approved by the Board from
time to time, including (but not by way of limitation) any plan providing for
the granting of (a) options to purchase stock of the Corporation, (b) restricted
stock of the Corporation or (c) similar equity-based units or interests, with
awards to the Executive that are of appropriate size and nature relative to
those for other senior executives and the individual performance of the
Executive.

         6.       Other Benefits. In addition to the compensation described in
Paragraphs 3, 4 and 5, above, the Executive shall also be entitled to
participate in all of the various retirement, welfare, fringe benefit, executive
perquisite, and expense reimbursement plans, programs and arrangements of the
Corporation to the extent the Executive is eligible for participation under the
terms of such plans, programs and arrangements, with benefit levels and terms of
participation at least as favorable to the Executive as those in effect on the
Effective Date, except that the Executive's benefits and/or perquisites may be
reduced in

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connection with similar reductions uniformly applied with respect to all
similarly situated employees provided, however, that the Executive's overall
benefits shall be no less favorable than those for any other executive of the
Corporation.

         7.       Termination. Unless earlier terminated in accordance with the
following provisions of this Paragraph 7, the Corporation shall continue to
employ the Executive and the Executive shall remain employed by the Corporation
during the entire term of this Agreement as set forth in Paragraph 1(b).
Paragraph 9 hereof sets forth certain obligations of the Corporation in the
event that the Executive's employment hereunder is terminated. Certain
capitalized terms used in this Paragraph 7 and in Paragraphs 8 and 9 hereof are
defined in Paragraph 7(d), below.

                  (a) Death or Disability. Except to the extent otherwise
provided in Paragraph 9 with respect to certain post-Date of Termination payment
obligations of the Corporation, this Agreement shall terminate immediately as of
the Date of Termination in the event of the Executive's death or in the event
that the Executive becomes disabled. The Executive will be deemed to be disabled
upon the earlier of (i) the end of a six (6)-consecutive month period during
which, by reason of physical or mental injury or disease, the Executive has been
unable to perform substantially all of his usual and customary duties under this
Agreement or (ii) the date that a reputable physician selected by the Board, and
as to whom the Executive has no reasonable objection, determines in writing that
the Executive will, by reason of physical or mental injury or disease, be unable
to perform substantially all of the Executive's usual and customary duties under
this Agreement for a period of at least six (6) consecutive months. If any
question arises as to whether the Executive is disabled, upon reasonable request
therefor by the Board, the Executive shall submit to reasonable medical
examination for the purpose of determining the existence, nature and extent of
any such disability. The Board shall promptly give the Executive written notice
of any such determination of the Executive's disability and of any decision of
the Board to terminate the Executive's employment by reason thereof. Until the
Date of Termination for disability, the base salary payable to the Executive
under Paragraph 3 hereof shall be reduced dollar-for-dollar by the amount of any
disability benefits paid to the Executive in accordance with any disability
policy or program of the Corporation.

                  (b) Discharge for Cause. In accordance with the procedures
hereinafter set forth, the Board may discharge the Executive from his employment
hereunder for Cause. Except to the extent otherwise provided in Paragraph 9 with
respect to certain post-Date of Termination obligations of the Corporation, this
Agreement shall terminate immediately as of the Date of Termination in the event
the Executive is discharged for Cause. Any discharge of the Executive for Cause
shall be communicated by a Notice of Termination to the Executive given in
accordance with Paragraph 17 of this Agreement. For purposes of this Agreement,
a "Notice of Termination" means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated and
(iii) specifies the termination date, which may be as early as the date of the
giving of such notice. In the case of a discharge of the Executive for

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Cause, the Notice of Termination shall include a copy of a resolution duly
adopted by the Board at a meeting called and held for such purpose (after
reasonable notice to the Executive and reasonable opportunity for the Executive,
together with the Executive's counsel, to be heard before the Board prior to
such vote), finding that, in the reasonable and good faith opinion of the Board,
the Executive was guilty of conduct constituting Cause. No purported termination
of the Executive's employment for Cause shall be effective without a Notice of
Termination.

                  (c) Termination for Other Reasons. The Corporation may
discharge the Executive without Cause by giving written notice to the Executive
in accordance with Paragraph 17 at least fifteen (15) days prior to the Date of
Termination. The Executive may resign from his employment, without liability to
the Corporation, by giving written notice to the Corporation in accordance with
Paragraph 17 at least fifteen (15) days prior to the Date of Termination. Except
to the extent otherwise provided in Paragraph 9 with respect to certain
post-Date of Termination obligations of the Corporation, this Agreement shall
terminate immediately as of the Date of Termination in the event the Executive
is discharged without Cause or resigns.

                  (d) Definitions. For purposes of this Agreement, the following
capitalized terms shall have the meanings set forth below:

                           (i) "Accrued Obligations" shall mean, as of the Date
of Termination, the sum of (A) the Executive's base salary under Paragraph 3
through the Date of Termination to the extent not theretofore paid, (B) the
amount of any bonus, incentive compensation, deferred compensation and other
cash compensation accrued by the Executive as of the Date of Termination to the
extent not theretofore paid and (C) any vacation pay, expense reimbursements and
other cash entitlements accrued by the Executive as of the Date of Termination
to the extent not theretofore paid. For the purpose of this Paragraph 7(d)(i),
amounts shall be deemed to accrue ratably over the period during which they are
earned, but no discretionary compensation shall be deemed earned or accrued
until it is specifically approved by the Board or the Compensation Committee in
accordance with the applicable plan, program or policy.

                           (ii) "Cause" shall mean: (A) the Executive's
commission of an act materially and demonstrably detrimental to the financial
condition and/or goodwill of the Corporation or any of its subsidiaries, which
act constitutes gross negligence or willful misconduct by the Executive in the
performance of his material duties to the Corporation or any of its
subsidiaries, or (B) the Executive's commission of any material act of
dishonesty or breach of trust resulting or intended to result in material
personal gain or enrichment of the Executive at the expense of the Corporation
or any of its subsidiaries, or (C) the Executive's conviction of a felony
involving moral turpitude, but specifically excluding any conviction based
entirely on vicarious liability. No act or failure to act will be considered
"willful" unless it is done, or omitted to be done, by the Executive in bad
faith or without reasonable belief that his action or omission was in the best
interests of the Corporation. In addition, no act or omission will constitute
Cause unless (A) a resolution finding that Cause exists has

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been approved by a majority of all of the members of the Board at a meeting at
which the Executive is allowed to appear with his legal counsel and (B) the
Corporation has given detailed written notice thereof to the Executive and,
where remedial action is feasible, he then fails to remedy the act or omission
within a reasonable time after receiving such notice.

                           (iii)  A "Change in Control" shall be deemed to have
occurred if:

                           (A) Any "person" (as defined in Section 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
excluding for this purpose the Corporation or any subsidiary of the Corporation,
or any employee benefit plan of the Corporation or any subsidiary of the
Corporation, or any person or entity organized, appointed or established by the
Corporation for or pursuant to the terms of such plan which acquires beneficial
ownership of voting securities of the Corporation, is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly
of securities of the Corporation representing twenty percent (20%) or more of
the combined voting power of the Corporation's then outstanding securities;
provided, however, that no Change in Control shall be deemed to have occurred as
the result of an acquisition of securities of the Corporation by the Corporation
which, by reducing the number of voting securities outstanding, increases the
direct or indirect beneficial ownership interest of any person to twenty percent
(20%) or more of the combined voting power of the Corporation's then outstanding
securities, but any subsequent increase in the direct or indirect beneficial
ownership interest of such a person in the Corporation shall be deemed a Change
in Control; and provided further that if the Board of Directors of the
Corporation determines in good faith that a person who has become the beneficial
owner directly or indirectly of securities of the Corporation representing
twenty percent (20%) or more of the combined voting power of the Corporation's
then outstanding securities has inadvertently reached that level of ownership
interest, and if such person divests as promptly as practicable a sufficient
amount of securities of the Corporation so that the person no longer has a
direct or indirect beneficial ownership interest in twenty percent (20%) or more
of the combined voting power of the Corporation's then outstanding securities,
then no Change in Control shall be deemed to have occurred;

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

                           (C) Consummation of (1) an agreement for the sale or
disposition of the Corporation or all or substantially all of the Corporation's
assets, (2) a plan of merger or

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consolidation of the Corporation with any other corporation, or (3) a similar
transaction or series of transactions involving the Corporation (any transaction
described in parts (1) through (3) of this subparagraph (C) being referred to as
a "Business Combination"), in each case unless after such a Business Combination
(x) the shareholders of the Corporation immediately prior to the Business
Combination continue to own, directly or indirectly, more than sixty percent
(60%) of the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors of the new (or
continued) entity (including, but not by way of limitation, an entity which as a
result of such transaction owns the Corporation or all or substantially all of
the Corporation's former assets either directly or through one or more
subsidiaries) immediately after such Business Combination, in substantially the
same proportion as their ownership of the Corporation immediately prior to such
Business Combination, (y) no person (excluding any entity resulting from such
Business Combination or any employee benefit plan (or related trust) of the
Corporation or of such entity resulting from such Business Combination)
beneficially owns, directly or indirectly, twenty percent (20%) or more of the
then combined voting power of the then outstanding voting securities of such
entity, except to the extent that such ownership existed prior to the Business
Combination, and (z) at least a majority of the members of the board of
directors of the entity resulting from such Business Combination were members of
the Incumbent Board at the time of the execution of the initial agreement, or of
the action of the Board, providing for such Business Combination; or

                           (D) Approval by the shareholders of the Corporation
of a complete liquidation or dissolution of the Corporation.

                           Any other provision of this Agreement to the contrary
notwithstanding, a "Change in Control" shall not include any transaction
described in subparagraph (A) or (C), above, where, in connection with such
transaction, the Executive and/or any party acting in concert with the Executive
substantially increases his or its, as the case may be, ownership interest in
the Corporation or a successor to the Corporation (other than through conversion
of prior ownership interests in the Corporation and/or through equity awards
received entirely as compensation for past or future personal services).

                           (iv) "Date of Termination"  shall mean (A) in the
event of a discharge of the Executive by the Board for Cause, the date specified
in such Notice of Termination, (B) in the event of a discharge of the Executive
without Cause or a resignation by the Executive, the date specified in the
written notice to the Executive (in the case of discharge) or the Corporation
(in the case of resignation), which date shall be no less than fifteen (15) days
from the date of such written notice, (C) in the event of the Executive's death,
the date of the Executive's death, and (D) in the event of termination of the
Executive's employment by reason of disability pursuant to Paragraph 7(a), the
date the Executive receives written notice of such termination.

                           (v) "Good Reason" shall mean any of the following
without the consent of the Executive: (A) the failure to re-elect the Executive
as Chairman and Chief Executive Officer, (B) assignment of duties inconsistent
with the Executive's position,

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authority, duties or responsibilities, or any other action by the Corporation
which results in a substantial diminution of such position, authority, duties or
responsibilities, other than an isolated, insubstantial and inadvertent action
not taken in bad faith and which is remedied by the Corporation promptly after
receipt of notice thereof given by the Executive, (C) any failure by the
Corporation to comply with any of the provisions of this Agreement, including
(but not by way of limitation) those provisions regarding compensation and
benefits, other than an isolated, insubstantial and inadvertent action not taken
in bad faith and which is remedied by the Corporation promptly after receipt of
notice thereof given by the Executive, or (D) the Corporation giving notice to
the Executive to stop further operation of the evergreen feature described in
Paragraph 1(b), above. However, during the period of three (3) years after a
Change in Control, "Good Reason" shall also include the Executive being
reassigned, without the Executive's consent, to an office location outside of
the Chicago, Illinois metropolitan area. In addition, termination by the
Executive for any reason during the thirty-six (36)-month period beginning with
a Change in Control shall be deemed to be a termination for Good Reason;
provided, however, that if the Executive dies after a Change in Control but less
than twelve (12) months after a Change in Control, the Executive will be deemed
to have terminated employment for Good Reason twelve (12) months after the
Change in Control.

                           (vi) "Qualifying Termination" shall mean termination
of the Executive's employment under this Agreement (A) by reason of the
discharge of the Executive by the Corporation other than for Cause or disability
or (B) by reason of the resignation of the Executive for Good Reason within
twelve (12) months after an event constituting Good Reason or (C) in accordance
with the last sentence of the definition of Good Reason in subparagraph (v),
above.

                  (e) Continuing Obligations. Notwithstanding the termination of
this Agreement pursuant to Paragraph 7(a), 7(b) or 7(c) above, or upon the
expiration of the term described in Paragraph 1 above, the respective covenants,
agreements and obligations of the Corporation and the Executive set forth
hereinafter shall continue.

         8.       Vesting of Equity Awards Upon a Change in Control. Immediately
upon the Change in Control, all stock options, restricted stock and other equity
awards previously made to the Executive which are not otherwise vested shall
vest in full, and all such options shall remain exercisable for the remainder of
the originally designated respective term of each option.

         9.       Obligations of the Corporation Upon Termination. The following
provisions describe the obligations of the Corporation to the Executive under
this Agreement upon termination of his employment. However, except as explicitly
provided in this Agreement, nothing in this Agreement shall limit or otherwise
adversely affect any rights which the Executive may have under applicable law,
under any other agreement with the Corporation or any of its subsidiaries, or
under any compensation or benefit plan, program, policy or practice of the
Corporation or any of its subsidiaries.

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                  (a) Death, Disability, Discharge for Cause, or Resignation
Without Good Reason. In the event this Agreement terminates by reason of the
death or disability of the Executive, or by reason of the discharge of the
Executive by the Corporation for Cause, or by reason of the resignation of the
Executive other than for Good Reason, the Corporation shall pay to the
Executive, or his heirs or estate, in the event of the Executive's death, all
Accrued Obligations in a lump sum within thirty (30) days after the Date of
Termination; provided, however, that any portion of the Accrued Obligations
which consists of bonus, deferred compensation, or incentive compensation shall
be determined and paid in accordance with the terms of the relevant plan as
applicable to the Executive.

                  (b) Death, Disability or Retirement. In the event that
Executive's employment is terminated by death, disability or retirement under a
retirement plan of the Corporation, the Executive shall be entitled to receive
in a lump sum within thirty (30) days after the Date of Termination, in addition
to the compensation and benefits described in paragraph (a) above, a pro rata
cash bonus for the year in which the Date of Termination occurs equal to the
product of (i) the highest of the annual bonuses payable to the Executive for
the three (3) years preceding the year in which the Date of Termination occurs,
including any bonus or portion thereof that has been earned but deferred (and
annualized for any fiscal year consisting of less than 12 full months or during
which the Executive was employed for less than 12 full months) (the "Highest
Annual Bonus"), and (ii) a fraction, the numerator of which is the number of
days in the current fiscal year through the Date of Termination, and the
denominator of which is 365.

                  (c) Qualifying Termination Without a Change in Control. In the
event of a Qualifying Termination without a Change in Control, the Executive
shall, upon executing and delivering a release of liability satisfactory to the
Corporation, receive the following benefits:

                           (i) Payment of all Accrued Obligations in a lump sum
within thirty (30) days after the Date of Termination; provided, however, that
any portion of the Accrued Obligations which consists of bonus, deferred
compensation or incentive compensation shall be determined and paid in
accordance with the terms of the relevant plan as applicable to the Executive,

                           (ii) Payment in a lump sum within thirty (30) days
after the Date of Termination of a salary replacement amount equal to two
hundred percent (200%) of the Executive's base salary as in effect prior to the
termination,

                           (iii) Payment in a lump sum within thirty (30) days
after the Date of Termination of a bonus replacement amount equal to two hundred
percent (200%) of the Highest Annual Bonus,

                           (iv) Continuation, for two (2) years after the Date
of Termination, of the welfare benefits and perquisites which are described in
paragraph (d) (iv), below, with the cost of such benefits to be paid by the
Corporation, but such benefits may be discontinued

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earlier to the extent that the Executive becomes entitled to comparable benefits
from a subsequent employer,

                           (v) Immediate full vesting of all stock options,
restricted stock and other equity or incentive compensation awards to the
Executive which are not otherwise vested, options to remain exercisable for the
full respective term originally designated for each award,

                           (vi) Outplacement services, at the expense of the
Corporation, from a provider reasonably selected by the Executive.

In addition, the Executive may, in the discretion of the Compensation Committee,
be awarded a pro rata cash bonus for the year in which the Date of Termination
occurs.

                  (d) Qualifying Termination After a Change in Control. In the
event of a Qualifying Termination within three (3) years after a Change in
Control, the Executive shall receive, in addition to the compensation and
benefits described in subparagraphs (c)(i) and (c)(vi), above, the following
benefits:

                           (i) Payment in a lump sum within thirty (30) days
after the Date of Termination of a pro rata cash bonus for the year in which the
Date of Termination occurs equal to the product of (x) the Highest Annual Bonus
and (y) a fraction, the numerator of which is the number of days in the current
fiscal year through the Date of Termination and the denominator of which is 365;

                           (ii) Payment in a lump sum within thirty (30) days
after the Date of Termination of a salary replacement amount equal to three
hundred percent (300%) of the Executive's base salary as in effect prior to the
termination,

                           (iii) Payment in a lump sum within thirty (30) days
after the Date of Termination of a bonus replacement amount equal to three
hundred percent (300%) of the Highest Annual Bonus;

                           (iv) Continuation, for a period of three (3) years
after the Date of Termination, of the following welfare benefits and senior
executive perquisites on terms at least as favorable to the Executive as those
which would have been provided if the Executive's employment had continued for
that time pursuant to this Agreement: medical and dental benefits, life and
disability insurance, umbrella liability insurance coverage, executive physical
examinations, and automobile and financial counseling allowances, with the cost
of such benefits to be paid by the Corporation. To the extent the Corporation is
unable to provide comparable insurance for reasons other than cost, the
Corporation may provide a lesser level or no coverage and compensate the
Executive for the difference in coverage through a cash lump sum payment grossed
up for taxes. This payment will be tied to the cost of an individual insurance
policy if it were assumed to be available. The medical

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and dental benefits provided hereunder shall not be considered a continuation of
coverage under COBRA, and continuation coverage under COBRA shall be made
available to the Executive at the end of such three (3) year period as if the
Executive's employment had terminated on the last day of such period. For
purposes of determining eligibility (but not the time of commencement of
benefits) of the Executive for retiree benefits pursuant to post-retirement
welfare benefit plans, practices, programs and policies of the Corporation, the
Executive shall be considered to have remained employed for three (3) years
after the Date of Termination and, therefore, will be treated as having three
(3) additional years of age and service credit after the Date of Termination and
as having retired on the last day of such three (3) year period;

                           (v) For purposes of determining the Executive's
benefits under the Corporation's non-qualified excess and supplemental defined
benefit retirement plans (the "SERP") in which the Executive participates, the
Executive's benefits under the SERP shall equal the excess of (x) the actuarial
equivalent (utilizing actuarial assumptions determined on a basis no less
favorable to the Executive than the basis used under the terms of the Retirement
Plan as in effect immediately prior to the Change in Control) of the sum of (A)
the benefit under the Corporation's qualified defined benefit retirement plan
(the "Retirement Plan") and (B) the benefit under any excess or supplemental
retirement plans in which the Executive participates (collectively, the "SERP"),
based on the Executive's period of service through the Date of Termination and
assuming for this purpose that: (1) the Executive's employment continued for
three years after the Date of Termination, and, therefore, the Executive had
three (3) additional years of age and service credit after the Date of
Termination under the Retirement Plan and the SERP, (2) all accrued benefits
under the Retirement Plan and the SERP are fully vested and (3) the Executive's
salary and annual bonus for each year during such three (3) year period were the
salary replacement and bonus replacement amounts described in subparagraphs (ii)
and (iii) above, over (y) the actuarial equivalent of the Executive's actual
benefit (paid or payable), if any, under the Retirement Plan, as of the Date of
Termination; and

                           (vi) Payment in a lump sum within thirty (30) days
after the Date of Termination of an amount equal to the sum of the maximum
matching contributions by the Corporation under the Corporation's tax-qualified
and supplemental Section 401(k) plans in which the Executive participates that
the Executive would have received if the Executive's employment continued for
three (3) years after the Date of Termination, assuming for this purpose that:
(x) the Executive's salary and annual bonus for each year during such three (3)
year period were the salary replacement and bonus replacement amounts described
in subparagraphs (ii) and (iii) above and (y) the Company's matching
contributions are determined pursuant to the applicable provisions of the
Corporation's tax-qualified and supplemental Section 401(k) plans, as in effect
immediately prior to the Change in Control.

                  (e) Termination of Employment Prior to Change in Control.
Anything in this Agreement to the contrary notwithstanding, if a Change in
Control occurs and if the Executive's employment with the Corporation is
terminated within six (6) months prior to the date on which the Change in
Control occurs, and if it is reasonably demonstrated by the

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Executive that such termination of employment (i) was at the request of a third
party who was taking steps reasonably calculated to effect a Change in Control
or (ii) otherwise arose in connection with or in anticipation of a Change in
Control, then for all purposes of this Agreement the termination of the
Executive's employment shall be deemed to have occurred immediately after the
Change in Control.

         10.      Certain Additional Payments by the Corporation.  The
Corporation agrees that:

                  (a) Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment or
distribution by the Corporation to or for the benefit of the Executive (whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments
required under this Paragraph 10) (a "Payment") would be subject to the excise
tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended,
(the "Code") or if any interest or penalties are incurred by the Executive with
respect to such excise tax (such excise tax, together with any such interest and
penalties, being hereinafter collectively referred to as the "Excise Tax"), then
the Executive shall be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that, after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payment.

                  (b) Subject to the provisions of paragraph (c), below, all
determinations required to be made under this Paragraph 10, including whether
and when a Gross-Up Payment is required and the amount of such Gross-Up Payment
and the assumptions to be utilized in arriving at such determination, shall be
made by the accounting firm which is then serving as the auditors for the
Corporation (the "Accounting Firm"), which shall provide detailed supporting
calculations both to the Corporation and the Executive within fifteen (15)
business days of the receipt of notice from the Executive that there has been a
Payment, or such earlier time as is requested by the Corporation. In the event
that the Accounting Firm is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, the Executive shall appoint
another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Corporation. Any Gross-Up Payment, as determined pursuant
to this Paragraph 10, shall be paid by the Corporation to the Executive within
five (5) days of the receipt of the Accounting Firm's determination. If the
Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall furnish the Executive with a written opinion that failure to report the
Excise Tax on the Executive's applicable federal income tax return would not
result in the imposition of a negligence or similar penalty. Any good faith
determination by the Accounting Firm shall be binding upon the Corporation and
the Executive. As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Corporation should have been

                                       11
<PAGE>

made ("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Corporation exhausts its remedies pursuant to
paragraph (c), below, and the Executive thereafter is required to make a payment
of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid
by the Corporation to or for the benefit of the Executive.

                  (c) The Executive shall notify the Corporation in writing of
any claim by the Internal Revenue Service that, if successful, would require the
payment by the Corporation of a Gross-Up Payment. Such notification shall be
given as soon as practicable but no later than fifteen (15) business days after
the Executive is informed in writing of such claim and shall apprise the
Corporation of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the
expiration of the thirty (30)-day period following the date on which Executive
gives such notice to the Corporation (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due). If the Corporation
notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall:

                           (i) Give the Corporation any information reasonably
requested by the Corporation relating to such claim,

                           (ii) Take such action in connection with contesting
such claim as the Corporation shall reasonably request in writing from time to
time, including, without limitation, accepting legal representation with respect
to such claim by an attorney reasonably selected by the Corporation,

                           (iii) Cooperate with the Corporation in good faith in
order effectively to contest such claim, and

                           (iv) Permit the Corporation to participate in any
proceedings relating to such claim;

provided, however, that the Corporation shall bear and pay directly all costs
and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold the Executive
harmless, on an after-tax basis, for any Excise Tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limiting the foregoing
provisions of this paragraph (c), the Corporation shall control all proceedings
taken in connection with such contest and, at its sole option, may pursue or
forego any and all administrative appeals, proceedings, hearings and conferences
with the taxing authority in respect of such claim and may, at its sole option,
either direct the Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner; and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Corporation shall determine; provided, however, that if the Corporation directs
the Executive to pay such claim and sue for a refund, the

                                       12

<PAGE>

Corporation shall advance the amount of such payment to the Executive on an
interest-free basis and shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further provided
that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Corporation's control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.

                  (d) If, after the receipt by the Executive of an amount
advanced by the Corporation pursuant to paragraph (c), above, the Executive
becomes entitled to receive any refund with respect to such claim, the Executive
shall (subject to the Corporation's complying with the requirements of said
paragraph (c)) promptly pay to the Corporation the amount of such refund
(together with any interest paid or credited thereon, after taxes applicable
thereto). If, after the receipt by the Executive of an amount advanced by the
Corporation pursuant to said paragraph (c), a determination is made that the
Executive shall not be entitled to any refund with respect to such claim and the
Corporation does not notify the Executive in writing of its intent to contest
such denial of refund prior to the expiration of thirty (30) days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid; and the amount of such advance shall offset, to the extent thereof,
the amount of the Gross-Up Payment required to be paid.

         11.      No Set-Off or Mitigation. The Corporation's obligation to make
the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Corporation may
have against the Executive or others. In no event shall the Executive be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this
Agreement, and such amounts shall not be reduced whether or not the Executive
obtains other employment.

         12.      Payment of Certain Expenses. The Corporation agrees to pay
promptly as incurred, to the fullest extent permitted by law, all legal fees and
expenses which the Executive may reasonably incur as a result of any contest
(regardless of the outcome) by the Corporation, the Executive or others of the
validity or enforceability of, or liability under, any provision of this
Agreement (including as a result of any contest initiated by the Executive about
the amount of any payment due pursuant to this Agreement), plus in each case
interest on any delayed payment at the applicable federal rate provided for in
Section 7872(f)(2)(A) of the Code; provided, however, that, notwithstanding
anything contained herein to the contrary, with respect to contests arising
prior to a Change in Control (and not otherwise directly associated with the
Change in Control), the Corporation shall not

                                       13
<PAGE>

be obligated to make such payment with respect to any such contest in which the
Corporation prevails over the Executive.

         13.      Indemnification. To the full extent permitted by law, the
Corporation shall, both during and after the term of the Executive's employment,
indemnify the Executive (including the advancement of expenses) for any
judgments, fines, amounts paid in settlement and reasonable expenses, including
attorneys' fees, incurred by the Executive in connection with the defense of any
lawsuit or other claim to which he is made a party by reason of being (or having
been) an officer, director or employee of the Corporation or any of its
subsidiaries. In addition, the Executive shall be covered, both during and after
the term of the Executive's employment, by director and officer liability
insurance to the maximum extent that such insurance covers any officer or
director (or former officer or director) of the Corporation.

         14.      Confidentiality. During and after the period of employment
with the Corporation, the Executive shall not, without prior written consent
from the General Counsel of the Corporation directly or indirectly disclose to
any individual, corporation or other entity, other than to the Corporation or
any subsidiary or affiliate thereof or their officers, directors or employees
entitled to such information or any other person or entity to whom such
information is disclosed in the normal course of the business of the
Corporation) or use for the Executive's own benefit or for the benefit of any
such individual, corporation or other entity, any Confidential Information of
the Corporation. For purposes of this Agreement, "Confidential Information" is
information relating to the business of the Corporation or its subsidiaries or
affiliates (a) which is not generally known to the public or in the industry,
(b) which has been treated by the Corporation and its subsidiaries and
affiliates as confidential or proprietary, (c) which provides the Corporation or
its subsidiaries or affiliates with a competitive advantage, and (d) in the
confidentiality of which the Corporation has a legally protectable interest.
Confidential Information which becomes generally known to the public or in the
industry, or in the confidentiality of which the Corporation and its
subsidiaries and affiliates cease to have a legally protectable interest, shall
cease to be subject to the restrictions of this Paragraph 14.

         15.      Status Under FDIC Regulations. This Agreement amends and
restates a prior employment agreement dated February 13, 1995 which was entered
into prior to March 29, 1995, which was the date that regulations were proposed
by the Federal Deposit Insurance Corporation (the "FDIC") limiting "golden
parachute" and indemnification payments by insured depository institutions and
their holding companies. As of March 29, 1995 that prior agreement provided for
a lump sum payment equal to 600% of the Executive's base salary. In view of the
foregoing, if the payments and other benefits under Paragraph 9 of this
Agreement are limited by those FDIC regulations, it is currently anticipated
that any limits on "golden parachute" payments resulting from regulations issued
by the FDIC should not reduce the payments under this Agreement below the lesser
of (a) 600% of the Executive's base salary or (b) the payments and other
benefits calculated under Paragraph 9 of this Agreement. However, if FDIC
regulations are ultimately determined to further limit

                                       14
<PAGE>

payments and other benefits under this Agreement, then such FDIC limits shall
supersede the terms of Paragraph 9, above.

         16.      Binding Effect. This Agreement shall be binding upon and inure
to the benefit of the heirs and representatives of the Executive and the
successors and assigns of the Corporation. The Corporation shall require any
successor (whether direct or indirect, by purchase, merger, reorganization,
consolidation, acquisition of property or stock, liquidation, or otherwise) to
all or a substantial portion of its assets, by agreement in form and substance
reasonably satisfactory to the Executive, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the
Corporation would be required to perform this Agreement if no such succession
had taken place. Regardless of whether such an agreement is executed, this
Agreement shall be binding upon any successor of the Corporation in accordance
with the operation of law, and such successor shall be deemed the "Corporation"
for purposes of this Agreement.

         17.      Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered by hand or by recognized commercial delivery service or
if mailed within the continental United States by first class certified mail,
return receipt requested, postage prepaid, addressed as follows:

                  (1)      If to the Board or the Corporation, to:

                           Household International, Inc.
                           2700 Sanders Road
                           Prospect Heights, Illinois  60070
                           Attention:  Executive Vice President-Administration

                  (2)      If to the Executive, to:

                           Household International, Inc.
                           2700 Sanders Road
                           Prospect Heights, Illinois  60070
                           Attention:  William F. Aldinger

Such addresses may be changed by written notice sent to the other party at the
last recorded address of that party.

         18. Tax Withholding. The Corporation shall provide for the withholding
of any taxes required to be withheld by federal, state, or local law with
respect to any payment in cash, shares of stock and/or other property made by or
on behalf of the Corporation to or for the benefit of the Executive under this
Agreement or otherwise. The Corporation may, at its option: (a) withhold such
taxes from any cash payments owing from the Corporation to the Executive, (b)
require the Executive to pay to the Corporation in cash such amount as may be
required to satisfy such withholding obligations and/or (c) make other
satisfactory arrangements with the Executive to satisfy such withholding
obligations.

                                       15
<PAGE>

         19.      Arbitration. Except as to any controversy or claim which the
Executive elects, by written notice to the Corporation, to have adjudicated by a
court of competent jurisdiction, any controversy or claim arising out of or
relating to this Agreement or the breach hereof shall be settled by arbitration
in Chicago, Illinois in accordance with the laws of the State of Illinois. The
arbitration shall be conducted in accordance with the rules of the American
Arbitration Association. The costs and expenses of the arbitrator(s) shall be
borne by the Corporation. The award of the arbitrator(s) shall be binding upon
the parties. Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction.

         20.      No Assignment.  Except as otherwise expressly provided herein,
this Agreement is not assignable by any party and no payment to be made
hereunder shall be subject to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or other charge.

         21.      Execution in Counterparts.  This Agreement may be executed by
the parties hereto in two (2) or more counterparts, each of which shall be
deemed to be an original, but all such counterparts shall constitute one and the
same instrument, and all signatures need not appear on any one counterpart.

         22.      Jurisdiction and Governing Law.  This Agreement shall be
construed and interpreted in accordance with and governed by the laws of the
State of Illinois, other than the conflict of laws provisions of such laws.

         23.      Severability. If any provision of this Agreement shall be
adjudged by any court of competent jurisdiction to be invalid or unenforceable
for any reason, such judgment shall not affect, impair or invalidate the
remainder of this Agreement. Furthermore, if the scope of any restriction or
requirement contained in this Agreement is too broad to permit enforcement of
such restriction or requirement to its full extent, then such restriction or
requirement shall be enforced to the maximum extent permitted by law, and the
Executive consents and agrees that any court of competent jurisdiction may so
modify such scope in any proceeding brought to enforce such restriction or
requirement.

         24.      Prior Understandings. This Agreement embodies the entire
understanding of the parties hereto and supersedes all other oral or written
agreements or understandings between them regarding the subject matter hereof,
including but not by way of limitation by amending and restating the Employment
Agreement dated January 1, 1999 and the Employment Agreement dated July 9, 1996
between the parties. No change, alteration or modification hereof may be made
except in a writing, signed by each of the parties hereto. The headings in this
Agreement are for convenience of reference only and shall not be construed as
part of this Agreement or to limit or otherwise affect the meaning hereof.

                                       16
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the day and year first above written.

Attest:                                      HOUSEHOLD INTERNATIONAL, INC.

/s/ K. H. Robin                           By: /s/ G. A. Lorch
--------------------------------             ----------------------------------
Kenneth H. Robin                             Title:  Chairman of the
Senior Vice President-General                Compensation Committee of
Counsel and Corporate Secretary              Household International, Inc.

                                             /s/ W. F. Aldinger
                                             ----------------------------------
                                             William F. Aldinger

                                       17<PAGE>
                                                                EXHIBIT 10.12(b)

                              EMPLOYMENT AGREEMENT

            AGREEMENT by and between Household International, Inc., a company
incorporated under the laws of Delaware (the "Company") and William F. Aldinger
(the "Executive") dated as of the 14th day of November, 2002.

            The Company has determined that it is in the best interests of the
Company and its shareholders to assure that the Company will have the continued
dedication of the Executive following the pending merger (the "Merger") of H2
Acquisition Corporation, a Delaware corporation and a wholly-owned subsidiary of
HSBC Holdings plc (the "Parent"), with and into the Company pursuant to the
Agreement and Plan of Merger dated as of November 14, 2002 and to provide the
surviving corporation after the Merger with continuity of management. Therefore,
in order to accomplish these objectives, the Parent has caused the Company to
enter into this Agreement.

            NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

            1. Effective Date. The "Effective Date" shall mean the effective
date of the Merger.

            2. Employment Period. The Company hereby agrees to employ the
Executive, and the Executive hereby agrees to enter into the employ of the
Company subject to the terms and conditions of this Agreement, for the period
commencing on the Effective Date and ending on the third anniversary thereof
(the "Employment Period").

            3. Terms of Employment. (a) Position and Duties. (i) During the
Employment Period, the Executive shall serve as Chairman and Chief Executive
Officer of the Company until January 1, 2004 and thereafter as Chairman and
Chief Executive Officer of the Company and HSBC North America, Inc., which will
include the Company and all other North American businesses of Parent (excluding
HSBC Dot.Com, Inc. and other intellectual property companies), in each case,
with such authority, duties and responsibilities as are commensurate with such
positions, (x) shall serve as a member of Parent Board of Directors (the "Parent
Board"), (y) the Executive shall report directly to the Chairman of the Parent
and (z) the Executive's principal work location shall be within 35 miles of
Prospect Heights, Illinois.

                  (ii) During the Employment Period, and excluding any periods
of vacation and sick leave to which the Executive is entitled, the Executive
agrees to devote substantially all of his attention and time during normal
business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder,
to use the Executive's reasonable best efforts to perform faithfully and
efficiently such responsibilities. During the Employment Period it shall not be
a violation of this Agreement for the Executive to, consistent with and subject
to the policies applicable to members of the Parent Board (A) serve on
corporate, civic or charitable boards or committees, (B) deliver lectures,
fulfill speaking engagements or teach at educational institutions and (C) manage
personal investments, so long as such activities do not significantly interfere
with the performance of the Executive's responsibilities as an employee of the
Company in accordance with this
<PAGE>

Agreement. It is expressly understood and agreed that to the extent that any
such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company. A schedule of such activities shall be provided
to the Company promptly following the date hereof.

            (b) Compensation. (i) Initial Payment. On the Effective Date, the
Company shall make a lump sum payment to the Executive equal to the cash
payments to which the Executive would have been entitled to receive under
Sections 9(d)(i), 9(d)(ii), 9(d)(iii) and 9(d)(vi) of the Employment Agreement
between the Company and the Executive dated as of March 1, 2002 (the "Prior
Agreement") had he been terminated by the Company pursuant to a Qualifying
Termination (as defined therein) immediately after the Effective Date. For the
avoidance of doubt, and notwithstanding anything herein to the contrary, no
amounts payable pursuant to this Section 3(b) or Section 8 of this Agreement
shall be taken into account in computing any benefits under any plan, program or
arrangement of the Company. The Executive shall promptly pay to the Company any
refund with respect to any Excise Tax (as defined in Section 8 hereof) or
Gross-Up Payment (as defined in Section 8 hereof) due to a recalculation of any
amounts due, for whatever reason, it being understood that the Executive would
be kept in the same after-tax position (after payment of the Gross-Up Payment)
that the Executive would have been in had no Excise Tax been imposed.

                  (ii) Base Salary. During the Employment Period, the Executive
shall receive an annual base salary ("Annual Base Salary") of no less than the
annual base salary paid to the Executive as of immediately prior to the date
hereof. During the Employment Period, the Annual Base Salary shall be reviewed
no more than 12 months after the last salary increase awarded to the Executive
prior to the date hereof and thereafter at least annually. Any increase in
Annual Base Salary shall not serve to limit or reduce any other obligation to
the Executive under this Agreement. Annual Base Salary shall not be reduced
after any such increase and the term Annual Base Salary as utilized in this
Agreement shall refer to Annual Base Salary as so increased. As used in this
Agreement, the term "affiliated companies" shall include any company controlled
by, controlling or under common control with the Company.

                  (iii) Annual Bonus. During the Employment Period, the
Executive shall receive an annual cash bonus ("Annual Bonus") in an amount at
least equal to the annual average of the Executive's bonuses earned with respect
to years 1999, 2000, and 2001 (the "Recent Annual Bonus"), pro rated in the case
of any partial year during the Employment Period.

                  (iv) Incentive Awards. A. Special Grant. Within 30 days of the
Effective Time, or, if the Effective Time occurs during the two-month period
prior to March 3, 2003, within 30 days thereafter, subject to the approval of
the trustee (the "Trustees") of Parent's Restricted Share Plan (the "Plan"), the
Executive will receive a one-time special retention grant of restricted shares
of the Parent (the "Special Restricted Shares") pursuant to the Plan, with a
value equal to $10,000,000 (the "Restricted Share Value"), based on the closing
price (the "Fair Market Value"), as of the date of grant of such Special
Restricted Shares, of ordinary shares of the Parent on the principal stock
exchange on which such shares are traded. The number of Special Restricted
Shares granted shall be determined by dividing the Restricted Share Value by the

                                      -2-
<PAGE>

Fair Market Value on the date of grant of such Special Restricted Shares. The
Special Restricted Shares will vest with respect to 1/3 of the shares on each of
the first three (3) anniversaries of the Effective Date, provided the Executive
is still employed on each applicable vesting date. Upon a termination of
employment of the Executive by the Company without Cause or by the Executive for
Good Reason or by reason of his death or Disability, the Special Restricted
Shares shall immediately vest. All other terms and conditions of the Special
Restricted Shares will be governed by the Plan. To the extent the grant of
Special Restricted Shares is not approved by the Trustees or would violate rules
and regulations under the Plan or applicable law (the "Excess Amount"), the
Executive will receive a one-time special cash bonus (the "Special Cash Bonus")
equal to the Excess Amount. The Special Cash Bonus, if any, will be paid to the
Executive in three equal installments on each of the first three (3)
anniversaries of the Effective Date, provided the Executive is still employed by
the Company on each applicable anniversary. Upon a termination of employment of
the Executive by the Company without Cause or by the Executive for Good Reason,
the Special Cash Bonus shall immediately vest and be payable.

                  B. Subsequent Grants. Within 30 days of each of the first
anniversary and the second anniversary of the Effective Date, or if the
Effective Time occurs during the two-month period prior to March 3, 2003, within
30 days after each such anniversary, subject to the approval of the Trustees,
provided the Executive is still employed by the Company on each applicable
anniversary, the Executive will receive a grant of restricted shares (the
"Restricted Shares") pursuant to the Plan, with a value equal to at least
$5,500,000, based on the Fair Market Value on the date of the applicable grant.
The number of Restricted Shares granted shall be determined by dividing
$5,500,000 by the Fair Market Value on the date of the applicable grant. Such
Restricted Shares shall vest in equal installments on each of the first three
(3) anniversaries of the date of grant, provided the Executive is still employed
by the Company on each applicable anniversary. All other terms and conditions of
the Restricted Shares will be governed by the Plan. Upon a termination of
employment of the Executive by the Company without Cause or by the Executive for
Good Reason or by reason of his death or Disability, the Restricted Shares shall
immediately vest. To the extent any such grant of Restricted Shares is not
approved by the Trustees or would violate rules and regulations under the Plan
or applicable law, the Executive will receive a cash bonus equal to such excess
amount. The Cash Bonus, if any, will be paid in equal installments on each of
the first three (3) anniversaries of the date of grant, provided the Executive
is still employed by the Company on each applicable anniversary. Upon a
termination of employment of the Executive by the Company without Cause or by
the Executive for Good Reason, the Cash Bonus shall immediately vest and be
payable.

                  (v) Retirement Benefits. Effective as of the Effective Time,
the Executive's benefits under the Company's qualified and non-qualified excess
and supplemental defined benefit retirement plans (the "SERP") shall be frozen,
giving effect to Section 9(d)(v) of the Prior Agreement for purposes of
calculating such benefits (the "Retirement Benefits").

                  (vi) Other Employee Benefits and Perquisites. During the
Employment Period, except with respect to benefits under qualified and
non-qualified excess and supplemental defined benefit retirement plans, the
Executive shall receive employee benefits and perquisites no less favorable than
those provided to the Executive immediately prior to the date hereof.

                                      -3-
<PAGE>

                  (vii) Expenses. During the Employment Period, the Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by the Executive in accordance with the Company's policies.

                  (viii) Vacation. During the Employment Period, the Executive
shall be entitled to paid vacation in accordance with the plans, policies,
programs and practices of the Company as in effect with respect to the senior
executives of the Company.

            4. Termination of Employment. (a) Death or Disability. The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 11(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties. For
purposes of this Agreement, "Disability" shall mean the absence of the Executive
from the Executive's duties with the Company on a full-time basis for 180
consecutive business days in a 365-day period as a result of incapacity due to
mental or physical illness which may be reasonably expected to be total and
permanent by a physician selected by the Company or its insurers and reasonably
acceptable to the Executive or the Executive's legal representative.

            (b) Cause. The Company may terminate the Executive's employment
during the Employment Period for Cause. For purposes of this Agreement, "Cause"
shall mean:

                  (i) the continued failure of the Executive to perform
substantially the Executive's duties with the Company or one of its affiliates
(other than any such failure resulting from incapacity due to physical or mental
illness), after a written demand for substantial performance is delivered to the
Executive by the Board which specifically identifies the manner in which the
Board believes that the Executive has not substantially performed the
Executive's duties, or

                  (ii) the willful engaging by the Executive in illegal conduct
or gross misconduct which is materially and demonstrably injurious to the
Company, or

                  (iii) commission of a felony or guilty or nolo contendere plea
by the Executive with respect thereto (other than any such commission or plea
relating to traffic violations).

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board of Directors of the Company (the "Board") or upon the
instructions of the Chief Executive Officer of the Parent or a senior officer of
the Parent or based upon the advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by

                                      -4-
<PAGE>

the Executive in good faith and in the best interests of the Company. The
cessation of employment of the Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than two-thirds of
the entire membership of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to the Executive and the
Executive is given an opportunity, together with counsel, to be heard before the
Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i), (ii) or (iii) above, and
specifying the particulars thereof in detail.

            (c) Good Reason. The Executive's employment may be terminated by the
Executive with or without Good Reason. For purposes of this Agreement, "Good
Reason" shall mean in the absence of a written consent of the Executive:

                  (i) the assignment to the Executive of any duties inconsistent
in any material respect with the Executive's position (including status,
offices, titles and reporting requirements), authority, duties or
responsibilities as contemplated by Section 3(a) of this Agreement, or any other
action by the Company which results in a material diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive; or

                  (ii) a material breach of the terms of this Agreement,
including, without limitation, any failure by the Company to comply with any of
the provisions of Section 3(b) or 10(c) of this Agreement; or

                  (iii) the Company's requiring the principal work location of
Executive to be located other than as provided in Section 3(a)(i)(z) hereof.

The Executive's mental or physical incapacity following the occurrence of an
event described above in clauses (i) through (iii) shall not affect the
Executive's ability to terminate employment for Good Reason.

            (d) Notice of Termination. Any termination by the Company for Cause,
or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 11(b) of
this Agreement. For purposes of this Agreement, a "Notice of Termination" means
a written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than thirty
days after the giving of such notice). The failure by the Executive or the
Company to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
the Executive or the Company, respectively, hereunder or preclude the Executive
or the Company, respectively, from asserting such fact or circumstance in
enforcing the Executive's or the Company's rights hereunder.

                                      -5-
<PAGE>

            (e) Date of Termination. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein within 30 days of such notice, as the case may
be, (ii) if the Executive's employment is terminated by the Company other than
for Cause or Disability or the Executive resigns for Good Reason, the Date of
Termination shall be the date on which the Company or the Executive, as the case
may be, notifies the other party of such termination and (iii) if the
Executive's employment is terminated by reason of death or Disability, the Date
of Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

            5. Obligations of the Company upon Termination. (a) Good Reason;
Other Than for Cause, Death or Disability. If, during the Employment Period, the
Company shall terminate the Executive's employment other than for Cause or
Disability or the Executive shall terminate employment for Good Reason:

                  (i) the Company shall pay to the Executive in a lump sum in
cash within 30 days after the Date of Termination the aggregate of the following
amounts:

                  A. the sum of (1) the Executive's Annual Base Salary through
            the Date of Termination to the extent not theretofore paid, and (2)
            the product of (x) the Recent Annual Bonus and (y) a fraction, the
            numerator of which is the number of days in the fiscal year in which
            the Date of Termination occurs through the Date of Termination, and
            the denominator of which is 365, in each case to the extent not
            theretofore paid (the sum of the amounts described in clauses (1)
            and (2), shall be hereinafter referred to as the "Accrued
            Obligations"); and

                  B. the amount equal to the product of (1) the number of months
            and portions thereof from the Date of Termination until the third
            anniversary of the Effective Date, divided by twelve and (2) the sum
            of (x) the Executive's Annual Base Salary and (y) the Recent Annual
            Bonus; and

                  (ii) notwithstanding any provision in an award agreement to
the contrary, effective as of the date of termination of the Executive's
employment, (A) each and every stock option, restricted stock award, restricted
stock unit award and other equity-based award and performance award or any cash
equivalents thereof that is outstanding as of the date of termination, shall
immediately vest and become exercisable, and (B) for purposes of exercising any
such award, the Executive will be deemed to be retirement eligible (the "Equity
Benefits"); and

                  (iii) for the remainder of the Executive's life and that of
his current spouse, the Company shall continue to provide medical and dental
benefits to the Executive and his current spouse, at no cost to the Executive or
his current spouse and otherwise on the same basis such benefits were provided
to the Executive immediately prior to the Date of Termination (collectively
"Medical Benefits"); and

                  (iv) the Executive shall be paid the Retirement Benefits in a
lump sum within 30 days after the Date of Termination; and

                                      -6-
<PAGE>

                  (v) to the extent not theretofore paid or provided, the
Company shall timely pay or provide to the Executive any other amounts or
benefits required to be paid or provided or which the Executive is eligible to
receive under any plan, program, policy or practice or contract or agreement of
the Company and its affiliated companies through the Date of Termination (such
other amounts and benefits shall be hereinafter referred to as the "Other
Benefits").

            (b) Death. If the Executive's employment is terminated by reason of
the Executive's death during the Employment Period, this Agreement shall
terminate without further obligations to the Executive's legal representatives
under this Agreement, other than for payment of Accrued Obligations, the
Retirement Benefits and the timely payment or provision of Other Benefits. In
addition, the Executive shall receive the Equity Benefits, subject to the
approval of the Trustees, where necessary. Accrued Obligations and the
Retirement Benefits shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days of the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 5(b) shall include death benefits as in effect on the
date of the Executive's death with respect to senior executives of the Company
and his beneficiaries and the provision of the Medical Benefits to the
Executive's current spouse.

            (c) Disability. If the Executive's employment is terminated by
reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations, the Retirement Benefits and the timely
payment or provision of Other Benefits. In addition, the Executive shall receive
the Equity Benefits, subject to the approval of the Trustees, where necessary.
Accrued Obligations and the Retirement Benefits shall be paid to the Executive
in a lump sum in cash within 30 days of the Date of Termination. With respect to
the provision of Other Benefits, the term Other Benefits as utilized in this
Section 5(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits as in effect
at any time thereafter generally with respect to senior executives of the
Company and the provision of the Medical Benefits to the Executive and his
current spouse.

            (d) Cause; Other than for Good Reason. If the Executive's employment
shall be terminated for Cause or the Executive terminates his employment without
Good Reason during the Employment Period, this Agreement shall terminate without
further obligations to the Executive other than the obligation to pay or provide
to the Executive (i) the Annual Base Salary through the Date of Termination,
(ii) the Retirement Benefit in a lump sum within 30 days after the Date of
Termination, (iii) the Medical Benefits with respect to expenses incurred prior
to the date of termination, and (iv) the Other Benefits, in each case to the
extent theretofore unpaid.

            (e) After Employment Period. If the Executive's employment shall
terminate for any reason following the Employment Period, the Company shall pay
or provide to the Executive, (i) the Retirement Benefit in a lump sum within 30
days after the date of termination, (ii) the Medical Benefits, and (iii) the
Other Benefits, to the extent theretofore unpaid.

            6. Non-exclusivity of Rights. Except as specifically provided,
nothing in this Agreement shall prevent or limit the Executive's continuing or
future participation in any plan, program, policy or practice provided by the
Company or any of its affiliated companies and for which the Executive may
qualify. Amounts which are vested benefits or which the Executive is

                                      -7-
<PAGE>

otherwise entitled to receive under any plan, policy, practice or program of or
any contract or agreement with the Company or any of its affiliated companies at
or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement except as
explicitly modified by this Agreement.

            7. Full Settlement. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement and, such amounts
shall not be reduced whether or not the Executive obtains other employment. The
Company agrees to pay as incurred, to the full extent permitted by law, all
legal fees and expenses which the Executive may reasonably incur as a result of
any contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability under, any provision
of this Agreement or any guarantee of performance thereof (including as a result
of any contest by the Executive about the amount of any payment pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable
Federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code
of 1986, as amended (the "Code"), provided the Executive brings or defends such
action in good faith.

            8. Certain Additional Payments by the Company.

            (a) Anything in this Agreement to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any payment
or distribution by the Company or its affiliates to or for the benefit of the
Executive (whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise, but determined without regard to any
additional payments required under this Section 8) (a "Payment") would be
subject to the excise tax imposed by Section 4999 of the Code or any interest or
penalties are incurred by the Executive with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then the Executive shall be
entitled to receive an additional payment (a "Gross-Up Payment") in an amount
such that after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including, without limitation,
any income taxes (and any interest and penalties imposed with respect thereto)
and Excise Tax imposed upon the Gross-Up Payment, the Executive retains an
amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.

            (b) Subject to the provisions of Section 8(c), all determinations
required to be made under this Section 8, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by KPMG LLP or
such other certified public accounting firm reasonably acceptable to the Company
as may be designated by the Executive (the "Accounting Firm") which shall
provide detailed supporting calculations both to the Company and the Executive
within 15 business days of the receipt of notice from the Executive that there
has been a Payment, or such earlier time as is requested by the Company. All
fees and expenses of the Accounting Firm shall be borne solely by the Company.
Any Gross-Up Payment, as determined

                                      -8-
<PAGE>

pursuant to this Section 8, shall be paid by the Company to the Executive within
five days of the later of (i) the due date for the payment of any Excise Tax,
and (ii) the receipt of the Accounting Firm's determination. Any determination
by the Accounting Firm shall be binding upon the Company and the Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made ("Underpayment"), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its
remedies pursuant to Section 8(c) and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount
of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive.

            (c) The Executive shall notify the Company in writing of any claim
by the Internal Revenue Service that, if successful, would require the payment
by the Company of the Gross-Up Payment. Such notification shall be given as soon
as practicable but no later than ten business days after the Executive is
informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which it gives such notice to the Company (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall:

                  (i) give the Company any information reasonably requested by
the Company relating to such claim,

                  (ii) take such action in connection with contesting such claim
as the Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Company,

                  (iii) cooperate with the Company in good faith in order
effectively to contest such claim, and

                  (iv) permit the Company to participate in any proceedings
relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 8(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
a determination before

                                      -9-
<PAGE>

any administrative tribunal, in a court of initial jurisdiction and in one or
more appellate courts, as the Company shall determine; provided, however, that
if the Company directs the Executive to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further provided
that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company's control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.

            (d) If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 8(c), the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the
Company's complying with the requirements of Section 8(c)) promptly pay to the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Section 8(c), a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

            9. Confidential Information; Restrictive Covenants. The Executive
shall hold in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of
its affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive's employment by the Company or
any of its affiliated companies and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement). After termination of the Executive's
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other
than the Company and those designated by it.

            (a) Noncompetition. During the period Executive is actively employed
by the Company, and for the one-year period following the Executive's
termination of employment with the Company, other than a termination by the
Company without Cause or by the Executive for Good Reason (the "Restriction
Period), the Executive shall not become associated with any entity, whether as a
principal, partner, employee, consultant or shareholder (other than as a holder
of 1% or less of the outstanding voting shares of any publicly traded company)
that is actively engaged in any consumer lending business (including mortgage
and credit card lending) (a "Competitive Entity"). An entity will not be
considered a Competitive Entity if that entity and its affiliates (or their
predecessors) originated consumer loans in the most recently completed calendar
year in an amount less than $10 billion. Without limitation of the foregoing,
during the

                                      -10-
<PAGE>

Restriction Period, the Executive shall not solicit the business of, or
otherwise attempt to establish any business relationship of a nature that is
competitive with the business or relationship of the Company or its subsidiaries
with, any person or entity who was a significant commercial customer or client
of the Company or its subsidiaries within 6 months immediately prior to the date
of the Executive's termination of employment, including, without limitation,
Saks, GM, Union Privilege and their affiliates.

            (b) Nonsolicitation. During the Restriction Period, the Executive
will not directly or indirectly induce any employees of the Company or its
affiliates to terminate employment with any such entity, and shall not, directly
or indirectly, either individually or as owner, agent, employee, consultant or
otherwise, hire, employ or offer employment or assist in hiring, employing or
offering employment, to any person who is or was employed by the Company or an
affiliate unless such person shall have ceased to be employed by such entity for
a period of at least 6 months prior to the date of the Executive's termination
of employment.

            10. Successors. (a) This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

            (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

            (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

            11. Miscellaneous. (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws. Any dispute, controversy or claim
between the parties arising out of or relating to or in connection with this
Agreement, or in any way relating to any other relationship that exists or has
existed between the parties hereto, or any amendment or modification hereof,
shall be settled by the courts of the State of Delaware. The parties hereby
explicitly agree to waive any legal or contractual right they or either of them
may have to contest any dispute, controversy or claim between the parties
arising out of or relating to or in connection with this Agreement, or any
amendment or modification hereof, in any other forum whether judicial or
otherwise. The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

            (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                                      -11-
<PAGE>

            If to the Executive:

            Household International, Inc.
            2700 Sanders Road
            Prospect Heights, Illinois  60070
            Attention:  William F. Aldinger

            If to the Company:

            Household International, Inc.
            2700 Sanders Road
            Prospect Heights, Illinois  60070
            Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

            (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

            (d) The Company may withhold from any amounts payable under this
Agreement such Federal, state, local or foreign taxes as shall be required to be
withheld pursuant to any applicable law or regulation.

            (e) The Executive's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 4(c)(i)-(iii) of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

            (f) From and after the Effective Date this Agreement shall supersede
any other employment, severance or change of control agreement between the
parties with respect to the subject matter hereof including without limitation
the Prior Agreement, except as expressly provided herein.

            (g) This Agreement shall become effective if and only if the
Effective Time (as defined in the Merger Agreement) occurs..

                                      -12-
<PAGE>

            IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from its Board of Directors, the Company
has caused these presents to be executed in its name on its behalf, all as of
the day and year first above written.

                                            /s/ W. F. Aldinger
                                            ------------------------------------
                                            WILLIAM F. ALDINGER

                                            HOUSEHOLD INTERNATIONAL, INC.

                                            By /s/ C. P. Kelly
                                              ----------------------------------

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