Document:

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                                                                     EXHIBIT 4.2

                         [FORM OF INDENTURE SUPPLEMENT]

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                WILMINGTON TRUST COMPANY, AS OWNER TRUSTEE OF THE
                  HOUSEHOLD CONSUMER LOAN MASTER NOTE TRUST I,

                                     Issuer

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

           Indenture Trustee, Paying Agent and Securities Intermediary

                      SERIES 2003-[ ] INDENTURE SUPPLEMENT

                           Dated as of _________, 2003

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                                TABLE OF CONTENTS

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                                                                                                     PAGE
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ARTICLE I CREATION OF THE SERIES 2002-[ ] NOTES.................................................       1

   Section 1.01       Designation...............................................................       1

ARTICLE II DEFINITIONS..........................................................................       2

   Section 2.01       Definitions...............................................................       2

ARTICLE III SERVICING FEE.......................................................................      14

   Section 3.01       Servicing Compensation....................................................      14

ARTICLE IV RIGHTS OF SERIES 2002-[ ] NOTEHOLDERS AND ALLOCATION
                      AND APPLICATION OF COLLECTIONS............................................      15

   Section 4.01       Collections and Allocations...............................................      15

   Section 4.02       Determination of Monthly Interest.........................................      17

   Section 4.03       Determination of Monthly Principal........................................      18

   Section 4.04       Application of Available Funds on Deposit in the Collection Account.......      18

   Section 4.05       Investor Charge-offs......................................................      21

   Section 4.06       Subordinated Principal Collections........................................      21

   Section 4.07       Excess Finance Charge and Administrative Collections......................      21

   Section 4.08       Shared Principal Collections..............................................      22

   Section 4.09       [Reserved]................................................................      22

   Section 4.10       Principal Funding Account.................................................      22

   Section 4.11       Reserve Account...........................................................      23

   Section 4.12       Determination of LIBOR....................................................      26

   Section 4.13       Investment Instructions...................................................      26

   Section 4.14       Exchange of Notes for Transferor Amount...................................      26

ARTICLE V DELIVERY OF SERIES 2002-[ ] NOTES; DISTRIBUTIONS; REPORTS
                      TO SERIES 2002-[ ] NOTEHOLDERS............................................      27

   Section 5.01       Delivery and Payment for the Series 2002-[ ] Notes........................      27

   Section 5.02       Distributions.............................................................      27

   Section 5.03       Reports and Statements to Series 2002-[ ] Noteholders.....................      28

ARTICLE VI SERIES 2002-[ ] AMORTIZATION EVENTS..................................................      29

   Section 6.01       Series 2002-[ ] Amortization Events.......................................      29

ARTICLE VII REDEMPTION OF SERIES 2002-[ ] NOTES; SERIES FINAL
                      MATURITY; FINAL DISTRIBUTIONS.............................................      30
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<S>                                                                                                   <C>
   Section 7.01       Optional Redemption of Series 2002-[ ] Notes..............................      30

   Section 7.02       Series Final Maturity.....................................................      31

ARTICLE VIII MISCELLANEOUS PROVISIONS...........................................................      32

   Section 8.01       Ratification of Indenture.................................................      32

   Section 8.02       Counterparts..............................................................      32

   Section 8.03       Governing Law.............................................................      32

   Section 8.04       Transfer of the O/C Amount................................................      32

   Section 8.05       Limitation of Liability...................................................      32

   Section 8.06       Perfection of Security Interest...........................................      32

   Section 8.07       Transfer Restrictions.....................................................      33

   Section 8.08       Notice of Servicing Delegation............................................      33

   Section 8.09       Zero Balance Account Removal..............................................      33

   Section 8.10       Notice of Insolvency Events...............................................      33
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EXHIBITS

EXHIBIT A-1              FORM OF CLASS A NOTE

EXHIBIT A-2              FORM OF CLASS B NOTE

EXHIBIT B                FORM OF MONTHLY PAYMENT INSTRUCTIONS AND
                         NOTIFICATION TO THE INDENTURE TRUSTEE

EXHIBIT C                FORM OF MONTHLY STATEMENT

EXHIBIT D                FORM OF MONTHLY SERVICER'S CERTIFICATE

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                  SERIES 2003-[ ] INDENTURE SUPPLEMENT, dated as of ______, 2003
(the "INDENTURE SUPPLEMENT"), among WILMINGTON TRUST COMPANY, not in its
individual capacity, but solely as Owner Trustee of the HOUSEHOLD CONSUMER LOAN
MASTER NOTE TRUST I, a common law trust existing under the laws of the State of
Delaware (herein, the "ISSUER" or the "TRUST"), and WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION, not in its individual capacity, but solely as the
Indenture Trustee (herein, together with its successors in the trusts created
under the Master Indenture referred to below, the "INDENTURE TRUSTEE"), Paying
Agent and the Securities Intermediary under the Master Indenture, dated as of
September 30, 2002 (the "INDENTURE") between the Issuer, and the Indenture
Trustee (the Indenture, together with this Indenture Supplement, the
"AGREEMENT").

                  The Transferor may direct the Owner Trustee, on behalf of the
Issuer, to issue one or more Series of Notes in accordance with Section 2.12 of
the Indenture. The Transferor has tendered the notice of issuance required by
subsection 2.12(b)(i) of the Indenture and hereby directs the Owner Trustee, on
behalf of the Issuer, to enter into this Indenture Supplement with the Indenture
Trustee as required by Section 2.12 to provide for the issuance, authentication
and delivery of the Class A Notes, Series 2003-[ ] and the issuance,
authentication and delivery of the Class B Notes, Series 2003-[ ] and to specify
the Principal Terms thereof. The Principal Terms of this Series are set forth in
this Indenture Supplement to the Indenture.

                                   ARTICLE I

                      CREATION OF THE SERIES 2003-[ ] NOTES

         Section 1.01      Designation.

                 (a)       There is hereby created a Series of Notes to be
issued pursuant to the Indenture and this Indenture Supplement to be known as
"HOUSEHOLD CONSUMER LOAN MASTER NOTE TRUST I, SERIES 2003-[ ]" or the "SERIES
2003-[ ] NOTES." The Series 2003-[ ] Notes shall be issued in two Classes, the
first of which shall be known as the "CLASS A SERIES 2003-[ ] FLOATING RATE
ASSET BACKED NOTES" and the second of which shall be known as the "CLASS B
SERIES 2003-[ ] FLOATING RATE ASSET BACKED NOTES". The Series 2003-[ ] Notes
shall be due and payable on the Series 2003-[ ] Final Maturity Date.

                 (b)       Series 2003-[ ] shall be a Pool One Series and shall
be in Principal Sharing Group One and Excess Finance Charge Sharing Group One,
and shall not be in a Reallocation Group, Shared Enhancement Group or be
allocated Shared Transferor Principal Collections. Series 2003-[ ] shall not be
subordinated to any other Series. Notwithstanding any provision in the Indenture
or in this Indenture Supplement to the contrary, the first Distribution Date
with respect to Series 2003-[ ] shall be the _______, 2003 Distribution Date,
and the first Due Period shall begin on and include _______, 2003 and end on and
include ________, 2003.

                  (c)      In the event that any term or provision contained
herein shall conflict with or be inconsistent with any term or provision
contained in the Indenture, the terms and provisions of this Indenture
Supplement shall be controlling. All capitalized terms not otherwise defined
herein are defined in the Indenture, the Transfer and Servicing Agreement or the
Trust

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Agreement. Each capitalized term defined herein shall relate only to the Series
2003-[ ] Notes but not any other Series of Notes issued by the Issuer.

                                   ARTICLE II

                                   DEFINITIONS

         Section 2.01      Definitions.

                  (a)      Whenever used in this Indenture Supplement, the
following words and phrases shall have the following meanings, and the
definitions of such terms are applicable to the singular as well as the plural
forms of such terms and the masculine as well as the feminine and neuter genders
of such terms.

                  "Accumulation Period Factor" shall mean, with respect to any
Due Period, a fraction, (a) the numerator of which is equal to the sum of (i)
the initial invested amounts of all Outstanding Series in Principal Sharing
Group One which are not Variable Funding Series, (ii) the Invested Amount of all
Outstanding Variable Funding Series in Principal Sharing Group One which are in
the Revolving Period and (iii) the Invested Amount as of the end of the
Revolving Period for all Outstanding Variable Funding Series in Principal
Sharing Group One which are not in the Revolving Period and (b) the denominator
of which is equal to the sum of (i) the Initial Invested Amount, (ii) the
initial invested amounts of all Outstanding Principal Sharing Group One Series
(other than Series 2003-[ ]) that have controlled accumulation periods or
controlled amortization periods (the length of which may be altered in
accordance with the terms of the related Indenture Supplements) and are not
expected to be in their respective revolving periods as of such Due Period and
(iii) the Invested Amount as of the end of the Revolving Period for all
Outstanding Variable Funding Series in Principal Sharing Group One which are not
expected to be in their revolving periods as of such Due Period; provided,
however, that this definition may be changed at any time if an Officer's
Certificate is delivered indicating that such action will not result in an
Adverse Effect.

                  "Accumulation Period Length" shall have the meaning assigned
such term in subsection 4.04(e).

                  "Additional Interest" shall mean, with respect to any
Distribution Date, the Class A Additional Interest and the Class B Additional
Interest for such Distribution Date.

                  "Adjusted Invested Amount" shall mean, with respect to any
date of determination, an amount equal to the Invested Amount minus the
Principal Funding Account Balance on such date.

                  "Adjusted Pool One Principal Balance" shall mean an amount
equal to the greater of (a) the sum of (i) the total amount of Principal
Receivables in Pool One as of the close of business on the last day of the
immediately preceding Due Period (or with respect to the first Due Period, the
total amount of Principal Receivables in Pool One as of the Series 2003-[ ]
Cut-off Date) and (ii) the principal amount on deposit in the Special Funding
Account with respect to

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Pool One as of the close of business on such last day (or with respect to the
first Due Period, the Series 2003-[ ] Cut-off Date) and (b) the sum of the
numerators used to calculate the Investor Percentages for allocations with
respect to Principal Receivables, Finance Charge and Administrative Receivables
or Defaulted Amounts, as applicable, for all Pool One Series outstanding as of
the date as to which such determination is being made; provided, however, that
with respect to any Due Period in which an Addition Date for an Aggregate
Addition or a Removal Date occurs, the amount in clause (a)(i) above shall be
the sum of the amounts for each day in such Due Period computed as follows and
divided by the number of days in such Due Period: (1) the aggregate amount of
Principal Receivables in Pool One as of the close of business on the last day of
the prior Due Period, for each day in the period from and including the first
day of such Due Period to but excluding the related Additional Cut-Off Date or
Removal Date and (2) the aggregate amount of Principal Receivables in Pool One
as of the close of business on the related Additional Cut-off Date or Removal
Date after adjusting for the aggregate amount of Principal Receivables added to
or removed from Pool One on the related Additional Cut-off Date or Removal Date,
as the case may be, for each day in the period from and including the related
Additional Cut-off Date or Removal Date to and including the last day of such
Due Period.

                  "Administration Fee" shall mean $____________ per annum.

                  "Available Investor Finance Charge and Administrative
Collections" shall mean, with respect to any Due Period, an amount equal to the
sum of (a) the Investor Finance Charge and Administrative Collections, (b)
Principal Funding Investment Proceeds, if any, with respect to the related
Distribution Date, and (c) amounts, if any, to be withdrawn from the Reserve
Account which will be deposited into the Collection Account on the related
Distribution Date to be treated as Available Investor Finance Charge and
Administrative Collections pursuant to subsections 4.11(b) and (d).

                  "Available Investor Principal Collections" shall mean, with
respect to any Due Period, an amount equal to the sum of (a) (i) an amount equal
to the Investor Percentage of all Collections of Principal Receivables received
during such Due Period minus (ii) the amount of Subordinated Principal
Collections with respect to such Due Period, (b) any Shared Principal
Collections with respect to other Principal Sharing Group One Series (including
any amounts on deposit in the Special Funding Account with respect to Pool One
that are allocated to Series 2003-[ ] pursuant to the Agreement for application
as Shared Principal Collections), (c) any Refunding Proceeds and (d) any other
amounts which pursuant to Section 4.04 hereof are to be treated as Available
Investor Principal Collections with respect to the related Distribution Date.

                  "Available Reserve Account Amount" shall mean, with respect to
any Distribution Date, the lesser of (a) the amount on deposit in the Reserve
Account on such date (after taking into account any interest and earnings
retained in the Reserve Account pursuant to subsection 4.11(b) on such date, but
before giving effect to any (i) deposit made or to be made pursuant to
subsection 4.04(a)(ix) to the Reserve Account on such date, or (ii) any
withdrawal made or to be made pursuant to subsection 4.11(d), (e) and (f) from
the Reserve Account with respect to such date) and (b) the Required Reserve
Account Amount.

                  "Base Rate" shall mean, with respect to any Due Period, the
sum of (a) the product of the weighted average of the Class A Note Interest Rate
and the Class B Note Interest

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Rate for the Interest Period commencing in such Due Period (weighted based on
the Class A Note Principal Balance and the Class B Note Principal Balance as of
the last day of the prior Due Period) multiplied by a fraction, the numerator of
which is the Note Principal Balance and the denominator of which is the sum of
the Note Principal Balance and the O/C Amount as of the last day of the prior
Due Period and (b) a fraction, the numerator of which is the product of (i)
twelve and (ii) the Monthly Servicing Fee and the denominator of which is the
sum of the Note Principal Balance and the O/C Amount as of the last day of the
prior Due Period.

                  "Class A Additional Interest" shall have the meaning specified
in subsection 4.02(a).

                  "Class A Interest Shortfall" shall have the meaning specified
in subsection 4.02(a).

                  "Class A Monthly Interest" shall have the meaning specified in
subsection 4.02(a).

                  "Class A Note Initial Principal Balance" shall mean $________.

                  "Class A Note Interest Rate" shall mean a per annum rate of
____% in excess of LIBOR as determined (i) on ________, 2003, for the period
from and including the Closing Date through and excluding ________, 2003 and
(ii) on the related LIBOR Determination Date with respect to each Interest
Period thereafter.

                  "Class A Note Principal Balance" shall mean, with respect to
any date, an amount equal to (a) the Class A Note Initial Principal Balance
minus (b) the aggregate amount of any principal payments made to the Class A
Noteholders prior to such date.

                  "Class A Noteholder" shall mean the Person in whose name a
Class A Note is registered in the Note Register.

                  "Class A Notes" shall mean any one of the Notes executed by
the Issuer and authenticated by or on behalf of the Indenture Trustee,
substantially in the form of EXHIBIT A-1.

                  "Class B Additional Interest" shall have the meaning specified
in subsection 4.02(b).

                  "Class B Interest Shortfall" shall have the meaning specified
in subsection 4.02(b).

                  "Class B Monthly Interest" shall have the meaning specified in
subsection 4.02(b).

                  "Class B Note Initial Principal Balance" shall mean $________.

                  "Class B Note Interest Rate" shall mean a per annum rate of
___% in excess of LIBOR as determined (i) on _______, 2003, for the period from
and including the Closing Date through and excluding _______, 2003 and (ii) on
the related LIBOR Determination Date with respect to each Interest Period
thereafter.

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                  "Class B Note Principal Balance" shall mean, with respect to
any date, the Class B Note Initial Principal Balance, minus the aggregate amount
of any principal payments made to the Class B Noteholders prior to such date.

                  "Class B Noteholder" shall mean the Person in whose name a
Class B Note is registered in the Note Register.

                  "Class B Notes" shall mean any one of the Notes executed by
the Issuer and authenticated by or on behalf of the Indenture Trustee,
substantially in the form of EXHIBIT A-2.

                  "Closing Date" shall mean _________, 2003.

                  "Controlled Accumulation Amount" shall mean for any
Distribution Date with respect to the Controlled Accumulation Period, $________;
provided, however, that if the Accumulation Period Length is determined to be
less than ___  Due Periods pursuant to subsection 4.04(e), the Controlled
Accumulation Amount for each Distribution Date with respect to the Controlled
Accumulation Period will be equal to (a) the product of (i) the sum of the Class
A Note Initial Principal Balance and the Class B Note Initial Principal Balance
and (ii) the Accumulation Period Factor for the Due Period related to each
Distribution Date divided by (b) the Required Accumulation Factor Number.

                  "Controlled Accumulation Period" shall mean, unless an
Amortization Event shall have occurred prior thereto, the period commencing at
the close of business on ________, 20___ or such later date as is determined in
accordance with subsection 4.04(e) and ending on the first to occur of (a) the
commencement of the Early Amortization Period, (b) the payment in full of the
Note Principal Balance and (c) the Expected Principal Payment Date.

                  "Controlled Deposit Amount" shall mean, with respect to any
Distribution Date with respect to the Controlled Accumulation Period, an amount
equal to the sum of (a) the Controlled Accumulation Amount for such Distribution
Date and (b) any Deficit Controlled Accumulation Amount for the prior
Distribution Date.

                  "Covered Amount" shall mean an amount, determined as of each
Distribution Date with respect to any Interest Period during the Controlled
Accumulation Period, equal to the sum of (a) the product of (i) a fraction, the
numerator of which is the actual number of days in such Interest Period and the
denominator of which is 360, times (ii) the Class A Note Interest Rate in effect
with respect to such Interest Period, times (iii) the aggregate amount on
deposit in the Principal Funding Account up to the Class A Note Principal
Balance as of the Record Date preceding such Distribution Date and (b) the
product of (i) a fraction, the numerator of which is the actual number of days
in such Interest Period and the denominator of which is 360, times (ii) the
Class B Note Interest Rate in effect with respect to such Interest Period, times
(iii) the lesser of (A) the aggregate amount on deposit in the Principal Funding
Account in excess of the Class A Note Principal Balance and (B) the Class B Note
Principal Balance, in each case as of the Record Date preceding such
Distribution Date.

                  "Deficit Controlled Accumulation Amount" shall mean (a) on the
first Distribution Date during the Controlled Accumulation Period, the excess,
if any, of the Controlled Accumulation Amount for such Distribution Date over
the amount deposited in the

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Principal Funding Account on such Distribution Date and (b) on each subsequent
Distribution Date with respect to the Controlled Accumulation Period, the
excess, if any, of the Controlled Deposit Amount for such subsequent
Distribution Date over the amount deposited into the Principal Funding Account
on such subsequent Distribution Date.

                  "Distribution Date" shall mean ________, 2003 and the
fifteenth day of each calendar month thereafter, or if such fifteenth day is not
a Business Day, the next succeeding Business Day.

                  "Early Amortization Period" shall mean the period commencing
on the first day of the Due Period on which an Amortization Event with respect
to Series 2003-[ ] is deemed to have occurred or, if the Servicer is required to
make daily deposits into the Collection Account, on the day such Amortization
Event is deemed to have occurred, and ending upon the earlier to occur of (a)
the payment in full of the Note Principal Balance to the Series 2003-[ ]
Noteholders and (b) the Series 2003-[ ] Final Maturity Date.

                  "Eligible Investments" shall mean, with respect to funds
allocable to Series 2003-[ ] in the Collection Account, the Principal Funding
Account and the Reserve Account, "Eligible Investments" as defined in the
Indenture, except that (a) all references in such definition to "rating
satisfactory to the Rating Agency" shall mean ratings of not less than "A-1+",
"P-1" and "F1+" (whichever is applicable), unless otherwise specified by the
Rating Agency, and (b) all such investments shall have maturities at the time of
the acquisition thereof occurring no later than the Distribution Date following
such date of acquisition.

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended.

                  "Excess Finance Charge and Administrative Collections" shall
have the meaning specified in Section 8.08C of the Master Indenture.

                  "Excess Finance Charge Sharing Group One" shall mean Series
2003-[ ] and each other Series specified in the related Indenture Supplement to
be included in Excess Finance Charge Sharing Group One.

                  "Excess O/C Amount" shall mean, with respect to any
Distribution Date, the excess of the O/C Amount (before giving effect to
distributions on such Distribution Date) over the Required O/C Amount as of such
Distribution Date.

                  "Excess Spread" shall mean with respect to any Due Period, the
annualized percentage equivalent of a fraction, (a) the numerator of which is
equal to (i) Available Investor Finance Charge and Administrative Collections
with respect to such Due Period, plus (ii) any Excess Finance Charge and
Administrative Collections that are allocated to Series 2003-[ ] with respect to
such Due Period, minus (iii) the amounts distributable pursuant to subsection
4.04(a)(i) through (viii) with respect to the related Distribution Date, and (b)
the denominator of which is the sum of the Note Principal Balance and the O/C
Amount as of the last day of the immediately preceding Due Period.

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                  "Expected Principal Payment Date" shall mean the ___________,
20 _____ Distribution Date.

                  "Finance Charge Shortfall" shall have the meaning specified in
Section 4.07.

                  "Fixed Investor Percentage" shall mean, with respect to any
Due Period, the percentage equivalent (which percentage shall never exceed 100%)
of a fraction, (a) the numerator of which is the Adjusted Invested Amount as of
the close of business on the last day of the Revolving Period and (b) the
denominator of which is the Adjusted Pool One Principal Balance.

                  "Floating Investor Percentage" shall mean, with respect to any
Due Period, the percentage equivalent (which percentage shall never exceed 100%)
of a fraction, (a) the numerator of which is the Adjusted Invested Amount as of
the close of business on the last day of the preceding Due Period (or with
respect to the first Due Period, the Initial Invested Amount) and (b) the
denominator of which is the Adjusted Pool One Principal Balance.

                  "Initial O/C Amount" shall mean $_______________.

                  "Initial Invested Amount" shall mean $_______________.

                  "Initial Principal Amount" shall mean $______________.

                  "Interest Period" shall mean, with respect to any Distribution
Date, the period from and including the Distribution Date immediately preceding
such Distribution Date (or, in the case of the first Distribution Date, from the
Closing Date) to but excluding such Distribution Date.

                  "Interim Note Principal Amount" shall mean as of any
Distribution Date (before giving effect to distributions on such Distribution
Date) (a) the Class A Note Principal Balance plus (b) the Class B Note Principal
Balance minus (c) the Principal Funding Account Balance (before giving effect to
distributions on such Distribution Date), if any, minus (d) the Controlled
Deposit Amount distributed pursuant to Section 4.04(c)(i) for such Distribution
Date.

                  "Invested Amount" shall mean, as of any date of determination,
an amount equal to the Initial Principal Amount and the Initial O/C Amount minus
(a) the amount of principal previously paid to the Series 2003-[ ] Noteholders
with respect to the Class A Notes and the Class B Notes (including the principal
amount of any Notes purchased by the Transferor) and any reduction in the O/C
Amount pursuant to Section 4.04(b) or (c), and (b) the amount of unreimbursed
Investor Charge-offs and unreimbursed Subordinated Principal Collections.

                  "Investor Charge-off" shall have the meaning specified in
Section 4.05.

                  "Investor Defaulted Amount" shall mean, with respect to any
Distribution Date, an amount equal to the product of (a) the Defaulted Amount
for the related Due Period and (b) the Investor Percentage for such Due Period.

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                  "Investor Finance Charge and Administrative Collections" shall
mean, with respect to any Distribution Date, an amount equal to the product of
(a) Investor Percentage for the related Due Period and (b) Collections of
Finance Charge and Administrative Receivables deposited in the Collection
Account for the related Due Period.

                  "Investor Percentage" shall mean, for any Due Period, (a) with
respect to (i) Finance Charge and Administrative Receivables during any period
other than the Early Amortization Period, (ii) Principal Receivables during the
Revolving Period and (iii) Defaulted Amounts at any time, the Floating Investor
Percentage and (b) with respect to (i) Principal Receivables during any period
other than the Revolving Period and (ii) Finance Charge and Administrative
Receivables during the Early Amortization Period, the Fixed Investor Percentage.

                  "LIBOR" shall mean, for any LIBOR Determination Date, the
London interbank offered rate for one-month United States dollar deposits
determined by the Indenture Trustee for each Interest Period in accordance with
the provisions of Section 4.12.

                  "LIBOR Determination Date" shall mean for any Interest Period,
two London Business Days before that Interest Period commences; provided that
the LIBOR Determination Date for the first Interest Period will be two London
Business Days before the Closing Date.

                  "London Business Day" shall mean any Business Day on which
dealings in deposits in United States dollars are transacted in the London
interbank market.

                  "Monthly Administration Fee" shall mean the product of (i)
one-twelfth of the Administration Fee and (ii) the Floating Investor Percentage.

                  "Monthly Interest" shall mean, with respect to any
Distribution Date, the sum of the Class A Monthly Interest and the Class B
Monthly Interest for such Distribution Date.

                  "Monthly Principal" shall mean the monthly principal
distributable in respect of the Notes and the O/C Amount as calculated in
accordance with Section 4.03.

                  "Monthly Servicing Fee" shall mean, for any Distribution Date,
an amount equal to one-twelfth of the product of:

                  (a)      the Servicing Fee Rate;

                  (b)      the Floating Investor Percentage for the related Due
Period; and

                  (c)      the total amount of Principal Receivables as of the
close of business on the last day of the immediately preceding Due Period, or
with respect to the first Due Period, the total amount of Principal Receivables
as of the Closing Date, in either case, excluding the principal portion of
Participation Interests;

provided, however, that with respect to any Due Period in which an Addition Date
for an Aggregate Addition or a Removal Date occurs, the amount in clause (c)
above shall be the sum of the amounts for each day in that Due Period computed
as follows and divided by the number of days in that Due Period:

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                  (i)      the aggregate amount of Principal Receivables,
                           excluding the principal portion of participation
                           interests, as of the close of business on the last
                           day of the prior Due Period, for each day in the
                           period from and including the first day of that Due
                           Period to but excluding the related Additional
                           Cut-off Date or Removal Date; and

                  (ii)     the aggregate amount of Principal Receivables,
                           excluding the principal portion of participation
                           interests, as of the close of business on the related
                           Additional Cut-off Date or Removal Date after
                           adjusting for the aggregate amount of Principal
                           Receivables, excluding the principal portion of
                           Participation Interests, added to or removed on the
                           related Additional Cut-off Date or Removal Date, as
                           the case may be, for each day in the period from and
                           including the related Additional Cut-off Date or
                           Removal Date to and including the last day of that
                           Due Period;

provided, further, that with respect to the first Distribution Date, the Monthly
Servicing Fee will equal $_____________.

                  "Monthly Subordination Amount" shall mean with respect to any
Due Period an amount equal to the sum of:

                  (a)      the lower of (i) the excess of the amounts
distributable pursuant to subsection 4.04(a)(i) over the Available Investor
Finance Charge and Administrative Collections and Excess Finance Charge and
Administrative Collections allocated with respect thereto pursuant to subsection
4.04(a)(i), and (ii) (1) the product of (I) ____ % and (II) the Initial Invested
Amount minus (2) any principal payments to the O/C Holder and (3) the amount of
unreimbursed Investor Charge-offs (after giving effect to Investor Charge-offs
for the related Due Period) and unreimbursed Subordinated Principal Collections
(as of the previous Distribution Date); and

                  (b)      the lower of (i) the excess of the amounts
distributable pursuant to subsections 4.04(a)(ii) and 4.04(a)(iii), over the
Available Investor Finance Charge and Administrative Collections and Excess
Finance Charge and Administrative Collections allocated with respect thereto
pursuant to subsections 4.04(a)(ii) and (iii), and (ii)(1) the product of (I)
_____% and (II) the Initial Invested Amount minus (2) any principal payments to
the O/C Holder and (3) the amount of unreimbursed Investor Charge-offs (after
giving effect to Investor Charge-offs for the related Due Period) and
unreimbursed Subordinated Principal Collections, (including amounts allocated
pursuant to clause (a) above with respect to the related Distribution Date).

                  "Note Principal Balance" shall mean, at any time of
determination, the sum of the Class A Note Principal Balance and the Class B
Note Principal Balance.

                  "O/C Amount" shall mean, with respect to any date, an amount
equal to (a) the Invested Amount minus (b) the Note Principal Balance.

                  "O/C Holder" shall mean Household Consumer Loan Corporation
II, a Delaware corporation, as holder of the Transferor Certificate.

                                        9

<PAGE>

                  "Plan" shall mean (i) any employee benefit plan (within the
meaning of Section 3(3) of ERISA) that is subject to Title I of ERISA, (ii) any
plan (within the meaning of Section 4975(e)(1) of the Code) that is subject to
Section 4975 of the Code and (iii) any entity whose underlying assets include
"plan assets" of a plan described in (i) or (ii) by reason of such plan's
investment in the entity.

                  "Pool One" shall mean the pool of Receivables related to the
Accounts designated as "Pool One Accounts" by the Issuer to the Indenture
Trustee. Initially, the Issuer has designated all Accounts as "Pool One
Accounts".

                  "Pool One Series" shall mean Series 2003-[ ] and each other
Series which is designated as a Pool One Series in the related Indenture
Supplement.

                  "Principal Funding Account" shall have the meaning set forth
in subsection 4.10(a).

                  "Principal Funding Account Balance" shall mean, with respect
to any date of determination, the principal amount, if any, on deposit in the
Principal Funding Account on such date of determination.

                  "Principal Funding Investment Proceeds" shall mean, with
respect to each Distribution Date, the investment earnings on funds in the
Principal Funding Account (net of investment expenses and losses) for the period
from and including the immediately preceding Distribution Date to but excluding
such Distribution Date.

                  "Principal Sharing Group One" shall mean Series 2003-[ ] and
each other Series specified in the related Indenture Supplement to be included
in Principal Sharing Group One.

                  "Rating Agency" shall mean each of Standard & Poor's, Moody's
and Fitch.

                  "Reassignment Amount" shall mean, with respect to any
Distribution Date, after giving effect to any deposits and distributions
otherwise to be made on such Distribution Date, the sum of (a) the Note
Principal Balance and the O/C Amount on such Distribution Date, plus (b) Monthly
Interest for such Distribution Date and any Monthly Interest previously due but
not distributed to the Series 2003-[ ] Noteholders, plus (c) the amount of
Additional Interest, if any, for such Distribution Date and any Additional
Interest previously due but not distributed to the Series 2003-[ ] Noteholders
on a prior Distribution Date.

                  "Reference Banks" shall mean four major banks in the London
interbank market selected by the Servicer.

                  "Refunding Proceeds" shall mean with respect to any
Distribution Date, any proceeds of the issuance of a new Series of Notes
remitted by the Transferor, with the prior written consent of the Indenture
Trustee at least one Business Day prior to such Distribution Date for deposit
into the Collection Account and application as Available Investor Principal
Collections.

                                       10

<PAGE>

                  "Required Accumulation Factor Number" shall be equal to a
fraction, rounded upwards to the nearest whole number, the numerator of which is
one and the denominator of which is equal to the lowest monthly principal
payment rate (calculated based upon Collections of Principal Receivables for any
Due Period, over the amount of Principal Receivables on the first day of such
Due Period) on the Accounts for the 12 months preceding the date of such
calculation; provided, however, that this definition may be changed at any time
if the Rating Agency Condition is satisfied.

                  "Required O/C Amount" shall mean, as of the Closing Date, the
Initial O/C Amount and, as of any Distribution Date thereafter, an amount equal
to ___% of the Interim Note Principal Amount for such Distribution Date but not
less than ___% of the Initial Invested Amount; provided that (a) if an
Amortization Event has occurred, the Required O/C Amount for any Distribution
Date shall equal the amount of such requirement immediately preceding such
Amortization Event, (b) in no event shall the Required O/C Amount exceed the
Class A Note Principal Balance and the Class B Note Principal Balance on any
such date, (c) the Required O/C Amount may be reduced at any time to a lesser
amount if (i) the Rating Agency Condition is satisfied and (ii) an Officer's
Certificate of the Transferor has been delivered to the effect that in the
reasonable belief of the Transferor, such reduction will not result in an
Adverse Effect and (d) the Transferor, in its sole discretion may increase the
Required O/C Amount at any time.

                  "Required Reserve Account Amount" shall mean, with respect to
any Distribution Date on or after the Reserve Account Funding Date, an amount
equal to (a) ___% of the Class A Note Principal Balance or (b) any other amount
designated by the Transferor; provided, however, that if such designation is of
a lesser amount, the Transferor shall (i) provide the Servicer and the Indenture
Trustee with evidence that the Rating Agency Condition shall have been satisfied
and (ii) deliver to the Indenture Trustee an Officer's Certificate indicating
that such designation will not result in an Adverse Effect.

                  "Required Transferor Amount" shall have the meaning specified
in the Indenture.

                  "Required Transferor Percentage" shall mean with respect to
Pool One, (a) initially _% or (b) any other percentage designated by the
Transferor; provided, however, that if such designation is of a lesser amount,
the Transferor shall (i) provide the Servicer and the Indenture Trustee with
evidence that the Rating Agency Condition shall have been satisfied and (ii)
deliver to the Indenture Trustee a certificate of an authorized officer to the
effect that, based on the facts known to such officer at such time, in the
reasonable belief of the Transferor, such designation will not have an Adverse
Effect.

                  "Reserve Account" shall have the meaning specified in
subsection 4.11(a).

                  "Reserve Account Funding Date" shall mean (a) the third
Distribution Date prior to the scheduled commencement of the Controlled
Accumulation Period if the average Excess Spread for any three consecutive
months is _% or greater, (b) the fourth Distribution Date prior to the scheduled
commencement of the Controlled Accumulation Period if the average Excess Spread
for any three consecutive months is _% or greater, but less than _% (c) the
sixth Distribution Date prior to the scheduled commencement of the Controlled
Accumulation Period if the average Excess Spread for any three consecutive
months is _% or greater, but less than _%

                                       11

<PAGE>

and (d) the twelfth Distribution Date prior to the scheduled commencement of the
Controlled Accumulation Period if the average Excess Spread for any three
consecutive months is less than _%. For purposes of this definition, Excess
Spread shall be determined for each month beginning __ months prior to the
scheduled commencement of the Controlled Accumulation Period.

                  "Reserve Account Surplus" shall mean, as of any Distribution
Date following the Reserve Account Funding Date, the amount, if any, by which
the amount on deposit in the Reserve Account exceeds the Required Reserve
Account Amount.

                  "Reserve Draw Amount" shall mean, with respect to each
Distribution Date relating to the Controlled Accumulation Period or the first
Distribution Date relating to the Early Amortization Period, the amount, if any,
by which the Principal Funding Investment Proceeds for such Distribution Date
are less than the Covered Amount determined as of such Distribution Date.

                  "Revolving Period" shall mean the period beginning on the
Closing Date and ending on the earlier of the close of business on the day
immediately preceding the day the Controlled Accumulation Period or the Early
Amortization Period commences.

                  "Series 2003-[ ]" shall mean the Series of Notes for which the
terms are specified in this Indenture Supplement.

                  "Series 2003-[ ] Accounts" shall mean the Reserve Account and
the Principal Funding Account.

                  "Series 2003-[ ] Amortization Event" shall have the meaning
specified in Section 6.01.

                  "Series 2003-[ ] Cut-off Date" shall mean the commencement of
business on _______ __, 2003.

                  "Series 2003-[ ] Final Maturity Date" shall mean the earliest
to occur of (a) the ______, 20___ Distribution Date, (b) the Distribution Date
on which the Notes are paid in full, (c) the termination of the Trust pursuant
to Section 11.01 of the Indenture and (d) at the option of the Transferor, the
day on which the right of all Series of Notes to receive payments from the Trust
has terminated.

                  "Series 2003-[ ] Note" shall mean a Class A Note or a Class B
Note.

                  "Series 2003-[ ] Noteholder" shall mean a Class A Noteholder
or a Class B Noteholder.

                  "Series 2003-[ ] Principal Shortfall" shall have the meaning
specified in Section 4.08.

                  "Series Adjusted Invested Amount" shall mean, with respect to
any Due Period:

                                       12

<PAGE>

                  (a)      during the Revolving Period, the Invested Amount as
of the last day of the immediately preceding Due Period;

                  (b)      during the Controlled Accumulation Period, the amount
specified in clause (a) above as of the close of business on the last day of the
Revolving Period less unreimbursed Investor Charge-offs thereafter; provided,
however, that on any date, at the option of the Transferor (the exercise of such
option to be evidenced by written instructions from the Transferor to the
Servicer and the Indenture Trustee) and upon ten days written notice to the
Rating Agency, such amount may be reduced below the amount specified for the
previous Due Period to an amount not less than the greater of (i) the Adjusted
Invested Amount as of the last day of the immediately preceding Due Period (less
any amounts deposited into the Principal Funding Account since the last day of
the immediately preceding Due Period) and (ii) an amount that, if used as the
numerator of the Fixed Investor Percentage for the remainder of the Controlled
Accumulation Period, would assure that Available Investor Principal Collections
for this Series plus the product of the aggregate amount of the Shared Principal
Collections during each Due Period multiplied by a fraction the numerator of
which is the Invested Amount of this Series and the denominator of which is the
aggregate invested amount of all Series not scheduled to be in their revolving
period during such Due Period would equal at least 125% of the applicable
Controlled Accumulation Amount for such Due Period for so long as the Invested
Amount is greater than zero, assuming for this purpose that (A) the payment rate
with respect to Collections of Principal Receivables remains constant at the
level of the immediately preceding Due Period, (B) the total amount of Principal
Receivables theretofore conveyed to and in the Trust (and the Special Funding
Amount) remains constant at the level existing on the date of such reduction,
(C) no amortization event with respect to any Series will subsequently occur and
(D) no additional Series (other than any Series being issued on the date of such
reduction) will be subsequently issued; and

                  (c)      during any Early Amortization Period, the Invested
Amount as of the last day of the Revolving Period less unreimbursed Investor
Charge-offs thereafter or, if less, the amount last determined pursuant to
clause (b) above during the Controlled Accumulation Period.

                  "Series Portfolio Yield" shall mean, with respect to any Due
Period, the annualized percentage equivalent of a fraction, (a) the numerator of
which is equal to the sum of (i) Available Investor Finance Charge and
Administrative Collections with respect to such Due Period, plus (ii) any Excess
Finance Charge and Administrative Collections that are allocated to Series
2003-[ ] with respect to such Due Period, such sum to be calculated after
subtracting the Investor Defaulted Amount for such Due Period, and (b) the
denominator of which is the sum of the Note Principal Balance and the O/C Amount
as of the last day of the immediately preceding Due Period.

                  "Servicing Fee Rate" shall mean 2% per annum or such lesser
percentage as may be specified by the Servicer in an Officer's Certificate filed
with the Indenture Trustee; provided, however, that (a) such Officer's
Certificate shall state that, in the reasonable belief of the Servicer, such
change in percentage will not result in an Adverse Effect and (b) the Servicer
shall have provided written notice of such change to the Rating Agency at least
ten days prior to the date such change is to take effect.

                                       13

<PAGE>

                  "Subordinated Principal Collections" shall mean with respect
to any Due Period, Available Investor Principal Collections applied in
accordance with Section 4.06.

                  "Telerate Page 3750" shall mean the display page currently so
designated on the Telerate Service (or such other page as may replace that page
in that service for the purpose of displaying comparable rates or prices).

                  "Variable Funding Series" shall mean any Series, the invested
amount of which may be increased or decreased subject to the satisfaction of
certain conditions specified in the Indenture Supplement related to such Series.

                  Each capitalized term defined herein shall relate to the
Series 2003-[ ] Notes and no other Series of Notes issued by the Trust, unless
the context otherwise requires. All capitalized terms used herein and not
otherwise defined herein have the meanings ascribed to them in the Indenture or
the Transfer and Servicing Agreement. In the event that any term or provision
contained herein shall conflict with or be inconsistent with any term or
provision contained in the Indenture or Transfer and Servicing Agreement, the
terms and provisions of this Indenture Supplement shall govern.

                  The words "HEREOF," "HEREIN" and "HEREUNDER" and words of
similar import when used in this Indenture Supplement shall refer to this
Indenture Supplement as a whole and not to any particular provision of this
Indenture Supplement; references to any Article, subsection, Section or Exhibit
are references to Articles, subsections, Sections and Exhibits in or to this
Indenture Supplement unless otherwise specified; and the term "INCLUDING" means
"INCLUDING WITHOUT LIMITATION."

                                  ARTICLE III

                                  SERVICING FEE

         Section 3.01      Servicing Compensation.

                  (a)      Servicing Fee. The share of the Servicing Fee
allocable to the Series 2003-[ ] Noteholders with respect to any Distribution
Date shall equal the Monthly Servicing Fee. The portion of the Servicing Fee
that is not allocable to the Series 2003-[ ] Noteholders shall be paid by the
holders of the Transferor Certificates or the noteholders of other Series (as
provided in the related Indenture Supplements), and in no event shall the Trust,
the Owner Trustee, the Indenture Trustee or the Series 2003-[ ] Noteholders be
liable for the share of the Servicing Fee to be paid by the holders of the
Transferor Certificates or the noteholders of any other Series.

                                       14

<PAGE>

                                   ARTICLE IV

                      RIGHTS OF SERIES 2003-[ ] NOTEHOLDERS
                  AND ALLOCATION AND APPLICATION OF COLLECTIONS

         Section 4.01      Collections and Allocations.

                  (a)      Allocations. Collections of Finance Charge and
Administrative Receivables and Principal Receivables and Defaulted Receivables
allocated to Series 2003-[ ] pursuant to Article VIII of the Indenture shall be
allocated and distributed as set forth in this Article.

                  (b)      Payments to the Transferor. The Servicer shall on
Deposit Dates direct the Indenture Trustee to withdraw from the Collection
Account and pay to the Transferor the following amounts:

                           (i)      an amount equal to the Transferor Percentage
         for the related Due Period of Collections of Finance Charge and
         Administrative Receivables to the extent that such amount is then on
         deposit in the Collection Account; and

                           (ii)     (A)     if the Transferor Amount (determined
                  after giving effect to any Principal Receivables transferred
                  to the Trust on such Deposit Date) exceeds zero, an amount
                  equal to the Transferor Percentage for the related Due Period
                  of Collections of Principal Receivables that are then on
                  deposit in the Collection Account, and

                                    (B)     if the Transferor Amount (determined
                  after giving effect to any Principal Receivables transferred
                  to the Trust on such Deposit Date) does not exceed zero, the
                  amount set forth in clause (A) shall be deposited into the
                  Special Funding Account.

                  The withdrawals to be made from the Collection Account
pursuant to this subsection 4.01(b) do not apply to deposits into the Collection
Account that do not represent Collections, including payment of the purchase
price for the Receivables or the Notes pursuant to Section 2.06 or 7.01 of the
Transfer and Servicing Agreement or Section 11.04 of the Indenture.

                  (c)      Allocations to the Series 2003-[ ] Noteholders and to
the O/C Holder. The Servicer shall, prior to the close of business on any
Deposit Date, allocate to the Series 2003-[ ] Noteholders and to the O/C Holder
the following amounts as set forth below:

                           (i)      Allocations of Investor Finance Charge and
         Administrative Collections. The Servicer shall allocate to the Series
         2003-[ ] Noteholders and to the O/C Holder and retain in the Collection
         Account for application as provided herein an amount equal to the
         product of (A) the Investor Percentage and (B) the aggregate amount of
         Collections of Finance Charge and Administrative Receivables deposited
         in the Collection Account on such Deposit Date.

                                       15

<PAGE>

                           (ii)     Allocations of Principal Collections. The
         Servicer shall allocate to the Series 2003-[ ] Noteholders and to the
         O/C Holder the following amounts as set forth below:

                           (A)      Allocations During the Revolving Period.
                  During the Revolving Period an amount equal to the product of
                  (I) the Investor Percentage and (II) the aggregate amount of
                  Collections of Principal Receivables deposited in the
                  Collection Account on such Deposit Date, shall be allocated to
                  the Series 2003-[ ] Noteholders and retained in the Collection
                  Account until applied as provided herein.

                           (B)      Allocations During the Controlled
                  Accumulation Period. During the Controlled Accumulation Period
                  an amount equal to the product of (I) the Investor Percentage
                  and (II) the aggregate amount of Collections of Principal
                  Receivables deposited in the Collection Account on such
                  Deposit Date shall be allocated to the Series 2003-[ ]
                  Noteholders and deposited in the Principal Funding Account
                  until applied as provided herein; provided, however, that if
                  such Collections with respect to such Due Period exceed the
                  Controlled Deposit Amount for the related Distribution Date
                  then such excess shall be first, retained in the Collection
                  Account for application to reduce the O/C Amount to the
                  Required O/C Amount, second, if any other Principal Sharing
                  Series in Principal Sharing Group One is outstanding and in
                  its amortization period or accumulation period, retained in
                  the Collection Account for application, to the extent
                  necessary, as Shared Principal Collections to other Series in
                  Principal Sharing Group One on the related Distribution Date,
                  and third paid to the holders of the Transferor Certificates
                  only if the Transferor Amount on such Deposit Date is greater
                  than the Required Transferor Amount (after giving effect to
                  all Principal Receivables transferred to the Trust on such
                  day) and otherwise shall be deposited in the Special Funding
                  Account for Pool One.

                           (C)      Allocations During the Early Amortization
                  Period. During the Early Amortization Period, an amount equal
                  to the product of (I) the Investor Percentage and (II) the
                  aggregate amount of Collections of Principal Receivables
                  deposited in the Collection Account on such Deposit Date,
                  shall be allocated to the Series 2003-[ ] Noteholders and
                  retained in the Collection Account until applied as provided
                  herein; provided, however, that after the date on which an
                  amount of such Collections equal to the Note Principal Balance
                  has been deposited into the Collection Account and allocated
                  to the Series 2003-[ ] Noteholders, the excess over such
                  amount shall be first, retained in the Collection Account for
                  application to reduce the O/C Amount to the Required O/C
                  Amount, second, if any other Principal Sharing Series in
                  Principal Sharing Group One is outstanding and in its
                  amortization period or accumulation period, retained in the
                  Collection Account for application, to the extent necessary,
                  as Shared Principal Collections on the related Distribution
                  Date, and third paid to the holders of the Transferor
                  Certificates only if the Transferor Amount on such date is
                  greater than the Required Transferor Amount (after giving
                  effect to all Principal Receivables

                                       16

<PAGE>

                  transferred to the Trust on such day) and otherwise shall be
                  deposited in the Special Funding Account for Pool One.

         Section 4.02      Determination of Monthly Interest.

                  (a)      The amount of monthly interest ("CLASS A MONTHLY
INTEREST") distributable from the Collection Account with respect to the Class A
Notes on any Distribution Date shall be an amount equal to the product of (i)
(A) a fraction, the numerator of which is the actual number of days in the
related Interest Period and the denominator of which is 360, times (B) the Class
A Note Interest Rate in effect with respect to the related Interest Period and
(ii) the Class A Note Principal Balance as of the close of business on the last
day of the preceding Due Period.

                  On each Determination Date, the Servicer shall determine the
excess, if any (the "CLASS A INTEREST SHORTFALL"), of (x) the Class A Monthly
Interest for such Distribution Date over (y) the aggregate amount of funds
expected to be paid with respect to such Class A Monthly Interest on the related
Distribution Date. If the Class A Interest Shortfall with respect to any
Distribution Date is greater than zero, on each subsequent Distribution Date
until such Class A Interest Shortfall is fully paid, an additional amount
("CLASS A ADDITIONAL INTEREST") equal to the product of (i) (A) a fraction, the
numerator of which is the actual number of days in the related Interest Period
and the denominator of which is 360, times (B) the Class A Note Interest Rate
and (ii) such Class A Interest Shortfall (or the portion thereof which has not
been paid to the Class A Noteholders) shall be payable as provided herein with
respect to the Class A Notes. Notwithstanding anything to the contrary herein,
Class A Additional Interest shall be payable or distributed to the Class A
Noteholders only to the extent permitted by applicable law.

                  (b)      The amount of monthly interest ("CLASS B MONTHLY
INTEREST") distributable from the Collection Account with respect to the Class B
Notes on any Distribution Date shall be an amount equal to the product of (i)
(A) a fraction, the numerator of which is the actual number of days in the
related Interest Period and the denominator of which is 360, times (B) the Class
B Note Interest Rate in effect with respect to the related Interest Period and
(ii) the Class B Note Principal Balance as of the close of business on the last
day of the preceding Due Period.

                  On each Determination Date, the Servicer shall determine the
excess, if any (the "CLASS B INTEREST SHORTFALL"), of (x) the Class B Monthly
Interest for such Distribution Date over (y) the aggregate amount of funds
expected to be paid with respect to such Class B Monthly Interest on the related
Distribution Date. If the Class B Interest Shortfall with respect to any
Distribution Date is greater than zero, on each subsequent Distribution Date
until such Class B Interest Shortfall is fully paid, an additional amount
("CLASS B ADDITIONAL INTEREST") equal to the product of (i) (A) a fraction, the
numerator of which is the actual number of days in the related Interest Period
and the denominator of which is 360, times (B) the Class B Note Interest Rate in
effect with respect to the related Interest Period and (ii) such Class B
Interest Shortfall (or the portion thereof which has not been paid to the Class
B Noteholders) shall be payable as provided herein with respect to the Class B
Notes. Notwithstanding anything to the contrary herein, Class B Additional
Interest shall be payable or distributed to the Class B Noteholders only to the
extent permitted by applicable law.

                                       17

<PAGE>

         Section 4.03      Determination of Monthly Principal. The amount of
monthly principal distributable from the Collection Account with respect to the
Notes and the O/C Amount on each Distribution Date (the "MONTHLY PRINCIPAL"),
beginning with the Distribution Date in the month following the month in which
the Controlled Accumulation Period or, if earlier, the Early Amortization
Period, begins, shall be equal to the least of (a) the Available Investor
Principal Collections on deposit in the Collection Account with respect to such
Distribution Date, (b) for each Distribution Date with respect to the Controlled
Accumulation Period, the sum of the Controlled Deposit Amount for such
Distribution Date and the Excess O/C Amount for the related Due Period and (c)
the Adjusted Invested Amount for such Distribution Date (after taking into
account any adjustments to be made on such Distribution Date pursuant to
Sections 4.05 and 4.06).

         Section 4.04      Application of Available Funds on Deposit in the
Collection Account. The Servicer shall apply, or shall cause the Indenture
Trustee to apply by written instruction to the Indenture Trustee, on each
Distribution Date, Available Investor Finance Charge and Administrative
Collections and Excess Finance Charge and Administrative Collections allocable
to Series 2003-[ ] in accordance with Section 4.07 and Available Investor
Principal Collections on deposit in the Collection Account with respect to such
Distribution Date to make the following distributions:

                  (a)      On each Distribution Date, an amount equal to the
Available Investor Finance Charge and Administrative Collections and Excess
Finance Charge and Administrative Collections allocable to Series 2003-[ ] in
accordance with Section 4.07 with respect to such Distribution Date will be
distributed or deposited in the following priority:

                           (i)      an amount equal to Class A Monthly Interest
         for such Distribution Date, plus the amount of any Class A Monthly
         Interest, or portion thereof, previously due but not distributed to
         Class A Noteholders on a prior Distribution Date, plus the amount of
         any Class A Additional Interest for such Distribution Date, plus the
         amount of any Class A Additional Interest, or portion thereof,
         previously due but not distributed to Class A Noteholders on a prior
         Distribution Date, shall be distributed to the Paying Agent for payment
         to Class A Noteholders on such Distribution Date;

                           (ii)     an amount equal to Class B Monthly Interest
         for such Distribution Date, plus the amount of any Class B Monthly
         Interest previously due but not distributed to Class B Noteholders on a
         prior Distribution Date, plus the amount of any Class B Additional
         Interest for such Distribution Date, plus the amount of any Class B
         Additional Interest, or portion thereof, previously due but not
         distributed to Class B Noteholders on a prior Distribution Date, shall
         be distributed to the Paying Agent for payment to Class B Noteholders
         on the applicable Distribution Date;

                           (iii)    (A) if HFC or an Affiliate of HFC is no
         longer the Servicer, an amount equal to the Monthly Servicing Fee for
         such Distribution Date, plus the amount of any Monthly Servicing Fee,
         or portion thereof, previously due but not distributed to such Servicer
         on a prior Distribution Date, shall be distributed to such Servicer and
         (B) if HFC or an Affiliate of HFC is no longer the Administrator, an
         amount equal to the Monthly Administration Fee for such Distribution
         Date, plus the amount of any Monthly

                                       18

<PAGE>

         Administration Fee, or portion thereof, previously due but not
         distributed to such Administrator on a prior Distribution Date, shall
         be distributed to such Administrator;

                           (iv)     an amount equal to the Investor Defaulted
         Amount for such Distribution Date shall be treated as a portion of
         Available Investor Principal Collections for such Distribution Date;

                           (v)      an amount equal to the sum of the aggregate
         amount of Investor Charge-offs and the amount of Subordinated Principal
         Collections which have not been previously reimbursed shall be treated
         as a portion of Available Investor Principal Collections for such
         Distribution Date;

                           (vi)     upon the occurrence of an Event of Default
         with respect to Series 2003-[ ] and acceleration of the maturity of the
         Series 2003-[ ] Notes pursuant to Section 5.03 of the Indenture, the
         balance, if any, up to the outstanding Note Principal Balance shall be
         treated as a portion of Available Investor Principal Collections for
         such Distribution Date for distribution to the Series 2003-[ ]
         Noteholders;

                           (vii)    if HFC or an Affiliate of HFC is the
         Servicer, an amount equal to the Monthly Servicing Fee for such
         Distribution Date that has not been paid to the Servicer and any
         Monthly Servicing Fee, or portion thereof, due but not paid to the
         Servicer on a prior Distribution Date shall be paid to the Servicer
         (unless such amount has been netted against deposits to the Collection
         Account in accordance with Section 8.04 of the Indenture);

                           (viii)   if HFC or an Affiliate of HFC is the
         Administrator, an amount equal to the Monthly Administration Fee for
         such Distribution Date and any Monthly Administration Fee due but not
         paid to the Administrator on a prior Distribution Date shall be paid to
         the Administrator (unless such amount has been netted against deposits
         to the Collection Account in accordance with Section 8.04 of the
         Indenture);

                           (ix)     on each Distribution Date from and after the
         Reserve Account Funding Date, but prior to the date on which the
         Reserve Account terminates as described in Section 4.11(f), an amount
         equal to the excess, if any, of the Required Reserve Account Amount
         over the Available Reserve Account Amount shall be deposited into the
         Reserve Account; and

                           (x)      the balance, if any, will constitute a
         portion of Excess Finance Charge and Administrative Collections for
         such Distribution Date and will be available for allocation to other
         Series in Excess Finance Charge Sharing Group One or to the Transferor,
         as set forth in Section 8.08C of the Indenture.

                  (b)      On each Distribution Date with respect to the
Revolving Period, an amount equal to the Available Investor Principal
Collections deposited in the Collection Account for the related Due Period shall
be distributed in the following order of priority:

                                       19

<PAGE>

                           (i)      an amount equal to the excess, if any, of
         the O/C Amount over the Required O/C Amount shall be paid to the
         Transferor, for reduction of the O/C Amount, to the extent that the
         Transferor Amount exceeds zero; and

                           (ii)     the balance of such Available Investor
         Principal Collections shall be treated as Shared Principal Collections
         with respect to Principal Sharing Group One and applied in accordance
         with Section 8.05 of the Indenture.

                  (c)      On each Distribution Date with respect to the
Controlled Accumulation Period or the Early Amortization Period, an amount equal
to the Available Investor Principal Collections deposited in the Collection
Account for the related Due Period shall be distributed or deposited in the
following order of priority:

                           (i)      during the Controlled Accumulation Period
         and prior to the payment in full of the Class A Notes, the Class B
         Notes and the O/C Amount an amount equal to the Monthly Principal for
         such Distribution Date shall be first, deposited into the Principal
         Funding Account in an amount not to exceed the Controlled Deposit
         Amount and second, an amount not to exceed the Excess O/C Amount shall
         be distributed to the O/C Holder for reduction of the O/C Amount;

                           (ii)     during the Early Amortization Period, an
         amount equal to the Monthly Principal for such Distribution Date shall
         be distributed to the Paying Agent for payment to the Class A
         Noteholders on such Distribution Date and on each subsequent
         Distribution Date until the Class A Note Principal Balance has been
         paid in full;

                           (iii)    after giving effect to the distribution
         referred to in clause (ii) above, during the Early Amortization Period,
         an amount equal to the Monthly Principal remaining, if any, shall be
         distributed to the Paying Agent for payment to the Class B Noteholders
         on such Distribution Date and on each subsequent Distribution Date
         until the Class B Note Principal Balance has been paid in full;

                           (iv)     after the Class B Note Principal Balance has
         been reduced to zero, during the Early Amortization Period, an amount
         equal to the Monthly Principal remaining, if any, shall be distributed
         to the O/C Holder, for reduction of the O/C Amount, on such
         Distribution Date and on each subsequent Distribution Date until the
         O/C Amount has been paid in full; and

                           (v)      the balance of such Available Investor
         Principal Collections shall be treated as Shared Principal Collections
         with respect to Principal Sharing Group One and applied in accordance
         with Section 8.05 of the Indenture.

                  (d)      On the earlier to occur of (i) the first Distribution
Date with respect to the Early Amortization Period and (ii) the Expected
Principal Payment Date, the Indenture Trustee, acting in accordance with
instructions from the Servicer, shall withdraw from the Principal Funding
Account and distribute to the Paying Agent for payment first, to the Class A
Noteholders up to the Class A Note Principal Balance and second, to the Class B
Noteholders up to the Class B Note Principal Balance, the amounts deposited into
the Principal Funding Account pursuant to subsection 4.04(c)(i).

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<PAGE>

                  (e)      The Controlled Accumulation Period is scheduled to
commence on ________, 20____ provided, however, that, if the Accumulation Period
Length (determined as described below) is less than __ Due Periods, the date on
which the Controlled Accumulation Period actually commences will be delayed to
the first Business Day of the Due Period that is the number of whole Due Periods
prior to the Expected Principal Payment Date at least equal to the Accumulation
Period Length and, as a result, the number of Due Periods in the Controlled
Accumulation Period will at least equal the Accumulation Period Length. On the
Determination Date beginning in ________, 20____, and each Determination Date
thereafter until the Controlled Accumulation Period begins, the Servicer will
determine the "ACCUMULATION PERIOD LENGTH" which will equal the number of whole
Due Periods such that the sum of the Accumulation Period Factors for each Due
Period during such period will be equal to or greater than the Required
Accumulation Factor Number; provided, however, that the Accumulation Period
Length will not be determined to be less than one Due Period; provided, further,
however, that the determination of the Accumulation Period Length may be changed
at any time if an Officer's Certificate is delivered indicating that such action
will not result in an Adverse Effect.

         Section 4.05      Investor Charge-offs. On each Determination Date, the
Servicer shall calculate the Investor Defaulted Amount, if any, for the related
Distribution Date. If, on any Distribution Date, the Investor Defaulted Amount
for such Distribution Date exceeds the amount available therefor pursuant to
Section 4.04(a)(iv) with respect to such Due Period, the Invested Amount will be
reduced by the amount of such excess, but not by more than the Investor
Defaulted Amount for such Distribution Date (such reduction, an "INVESTOR
CHARGE-OFF").

         Section 4.06      Subordinated Principal Collections. On each
Distribution Date, the Servicer shall apply, or shall cause the Indenture
Trustee to withdraw from the Collection Account and apply, Subordinated
Principal Collections with respect to such Distribution Date, in an amount equal
to the lesser of the (a) Investor Percentage of all Collections of Principal
Receivables received during the preceding Due Period and (b) the Monthly
Subordination Amount for the preceding Due Period in accordance with the
priority set forth in clauses (i) through (iii) of Section 4.04(a). On each
Distribution Date, the Invested Amount shall be reduced by the amount of
Subordinated Principal Collections for such Distribution Date.

         Section 4.07      Excess Finance Charge and Administrative Collections.
Subject to Section 8.08C of the Indenture, Excess Finance Charge and
Administrative Collections with respect to the Excess Finance Charge Sharing
Series in Excess Finance Charge Sharing Group One for any Distribution Date will
be allocated to Series 2003-[ ] in an amount equal to the product of (a) the
aggregate amount of Excess Finance Charge and Administrative Collections with
respect to all the Excess Finance Charge Sharing Series in Excess Finance Charge
Sharing Group One for such Distribution Date and (b) a fraction, the numerator
of which is the Finance Charge Shortfall for Series 2003-[ ] for such
Distribution Date and the denominator of which is the aggregate amount of
Finance Charge Shortfalls for all the Excess Finance Charge Sharing Series in
Excess Finance Charge Sharing Group One for such Distribution Date. The "FINANCE
CHARGE SHORTFALL" for Series 2003-[ ] for any Distribution Date will be equal to
the excess, if any, of (a) the full amount required to be paid, without
duplication, pursuant to subsections 4.04(a)(i) through (ix) on such
Distribution Date over (b) the Available Investor Finance Charge and
Administrative Collections with respect to the Due Period related to such
Distribution Date.

                                       21

<PAGE>

         Section 4.08      Shared Principal Collections. Subject to Section 8.05
of the Indenture, Shared Principal Collections with respect to the Series in
Principal Sharing Group One for any Distribution Date will be allocated to
Series 2003-[ ] in an amount equal to the product of (a) the aggregate amount of
Shared Principal Collections with respect to all Principal Sharing Series in
Principal Sharing Group One for such Distribution Date and (b) a fraction, the
numerator of which is the Series 2003-[ ] Principal Shortfall for such
Distribution Date and the denominator of which is the aggregate amount of
Principal Shortfalls for all the Series which are Principal Sharing Series in
Principal Sharing Group One for such Distribution Date. The "SERIES 2003-[ ]
PRINCIPAL SHORTFALL" will be equal to (a) for any Distribution Date with respect
to the Revolving Period, zero, (b) for any Distribution Date with respect to the
Controlled Accumulation Period, the excess, if any, of the Controlled Deposit
Amount for such Distribution Date and the Excess O/C Amount with respect to the
Due Period related to such Distribution Date over the amount of Available
Investor Principal Collections for such Distribution Date (excluding any portion
thereof attributable to Shared Principal Collections), and (c) for any
Distribution Date with respect to the Early Amortization Period, the excess, if
any, of the Adjusted Invested Amount over the amount of Available Investor
Principal Collections for the Due Period related to such Distribution Date
(excluding any portion thereof attributable to Shared Principal Collections).

         Section 4.09      [Reserved].

         Section 4.10      Principal Funding Account.

                  (a)      The Indenture Trustee shall establish and maintain
with an Eligible Institution, which may be the Indenture Trustee, in the name of
the Trust, on behalf of the Trust, for the benefit of the Series 2003-[ ]
Noteholders, a segregated trust account with the corporate trust department of
such Eligible Institution (the "PRINCIPAL FUNDING ACCOUNT"), bearing a
designation clearly indicating that the funds deposited therein are held for the
benefit of the Series 2003-[ ] Noteholders. The Indenture Trustee shall possess
all right, title and interest in all funds on deposit from time to time in the
Principal Funding Account and in all proceeds thereof. The Principal Funding
Account shall be under the sole dominion and control of the Indenture Trustee
for the benefit of the Series 2003-[ ] Noteholders. If at any time the
institution holding the Principal Funding Account ceases to be an Eligible
Institution, the Transferor shall notify the Indenture Trustee, and the
Indenture Trustee upon being notified (or the Servicer on its behalf) shall,
within 10 Business Days, (or such longer period as to which the Rating Agency
has consented) establish a new Principal Funding Account meeting the conditions
specified above with an Eligible Institution, and shall transfer any cash or any
investments to such new Principal Funding Account. The Indenture Trustee, at the
direction of the Servicer, shall (i) make withdrawals from the Principal Funding
Account from time to time, in the amounts and for the purposes set forth in this
Indenture Supplement, and (ii) on each Distribution Date (from and after the
commencement of the Controlled Accumulation Period) prior to the termination of
the Principal Funding Account, make deposits into the Principal Funding Account
in the amounts specified in, and otherwise in accordance with, subsection
4.04(c)(i).

                  (b)      Funds on deposit in the Principal Funding Account
shall be invested at the direction of the Servicer by the Indenture Trustee in
Eligible Investments. Funds on deposit in the Principal Funding Account on any
Distribution Date, after giving effect to any withdrawals from the Principal
Funding Account on such Distribution Date, shall be invested in such

                                       22

<PAGE>

investments that will mature so that such funds will be available for withdrawal
on or prior to the following Distribution Date. The Indenture Trustee shall:

                           (i)      hold each Eligible Investment that
         constitutes investment property through a Securities Intermediary,
         which Securities Intermediary shall agree with the Indenture Trustee
         that (A) such investment property at all times shall be credited to a
         securities account of the Indenture Trustee, (B) all property credited
         to such securities account shall be treated as a financial asset, (C)
         such Securities Intermediary shall treat the Indenture Trustee as
         entitled to exercise the rights that comprise each financial asset
         credited to such securities account, (D) such Securities Intermediary
         shall comply with entitlement orders originated by the Indenture
         Trustee without the further consent of any other person or entity, (E)
         such Securities Intermediary shall not agree with any person or entity
         other than the Indenture Trustee to comply with entitlement orders
         originated by any person or entity other than the Indenture Trustee,
         (F) such securities account and all property credited thereto shall not
         be subject to any lien, security interest, right of set-off, or
         encumbrance in favor of such Securities Intermediary or anyone claiming
         through such Securities Intermediary (other than the Indenture
         Trustee), and (G) such agreement between such Securities Intermediary
         and the Indenture Trustee shall be governed by the laws of the State of
         New York; and

                           (ii)     maintain possession of each other Eligible
         Investment not described in clause (i) above;

provided, that no Eligible Investment shall be disposed of prior to its maturity
date. Terms used in clause (i) above that are defined in the New York UCC and
not otherwise defined herein shall have the meaning set forth in the New York
UCC.

                  On each Distribution Date with respect to the Controlled
Accumulation Period and on the first Distribution Date with respect to the Early
Amortization Period, the Indenture Trustee, acting at the Servicer's direction
given on or before such Distribution Date, shall transfer from the Principal
Funding Account to the Collection Account the Principal Funding Investment
Proceeds on deposit in the Principal Funding Account for application as
Available Investor Finance Charge and Administrative Collections for such
Distribution Date.

                  Principal Funding Investment Proceeds (including reinvested
interest) shall not be considered part of the amounts on deposit in the
Principal Funding Account for purposes of this Indenture Supplement.

         Section 4.11      Reserve Account.

                  (a)      The Indenture Trustee shall establish and maintain
with an Eligible Institution, which may be the Indenture Trustee in the name of
the Trust, on behalf of the Trust, for the benefit of the Series 2003-[ ]
Noteholders, a segregated trust account with the corporate trust department of
such Eligible Institution (the "RESERVE ACCOUNT"), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2003-[ ] Noteholders. The Indenture Trustee shall possess all right,
title and interest in all funds on deposit from time to time in the Reserve
Account and in all proceeds thereof. The Reserve

                                       23

<PAGE>

Account shall be under the sole dominion and control of the Indenture Trustee
for the benefit of the Series 2003-[ ] Noteholders. If at any time the
institution holding the Reserve Account ceases to be an Eligible Institution,
the Transferor shall notify the Indenture Trustee, and the Indenture Trustee
upon being notified (or the Servicer on its behalf) shall, within 10 Business
Days (or such longer period as to which the Rating Agency has consented),
establish a new Reserve Account meeting the conditions specified above with an
Eligible Institution, and shall transfer any cash or any investments to such new
Reserve Account. The Indenture Trustee, at the direction of the Servicer, shall
(i) make withdrawals from the Reserve Account from time to time in an amount up
to the Available Reserve Account Amount at such time, for the purposes set forth
in this Indenture Supplement, and (ii) on each Distribution Date (from and after
the Reserve Account Funding Date) prior to termination of the Reserve Account,
make a deposit into the Reserve Account in the amount specified in, and
otherwise in accordance with, subsection 4.04(a)(ix).

                  (b)      Funds on deposit in the Reserve Account shall be
invested at the direction of the Servicer by the Indenture Trustee in Eligible
Investments. Funds on deposit in the Reserve Account on any Distribution Date,
after giving effect to any withdrawals from the Reserve Account on such
Distribution Date, shall be invested in such investments that will mature so
that such funds will be available for withdrawal on or prior to the following
Distribution Date. The Indenture Trustee shall:

                           (i)      hold each Eligible Investment that
         constitutes investment property through a Securities Intermediary,
         which Securities Intermediary shall agree with the Indenture Trustee
         that (A) such investment property at all times shall be credited to a
         securities account of the Indenture Trustee, (B) all property credited
         to such securities account shall be treated as a financial asset, (C)
         such Securities Intermediary shall treat the Indenture Trustee as
         entitled to exercise the rights that comprise each financial asset
         credited to such securities account, (D) such Securities Intermediary
         shall comply with entitlement orders originated by the Indenture
         Trustee without the further consent of any other person or entity, (E)
         such Securities Intermediary shall not agree with any person or entity
         other than the Indenture Trustee to comply with entitlement orders
         originated by any person or entity other than the Indenture Trustee,
         (F) such securities account and all property credited thereto shall not
         be subject to any lien, security interest, right of set-off, or
         encumbrance in favor of such Securities Intermediary or anyone claiming
         through such Securities Intermediary (other than the Indenture
         Trustee), and (G) such agreement between such Securities Intermediary
         and the Indenture Trustee shall be governed by the laws of the State of
         New York; and

                           (ii)     maintain possession of each other Eligible
         Investment not described in clause (i) above;

provided, that no Eligible Investment shall be disposed of prior to its maturity
date. Terms used in clause (i) above that are defined in the New York UCC and
not otherwise defined herein shall have the meaning set forth in the New York
UCC.

                  On each Distribution Date, all interest and earnings (net of
losses and investment expenses) accrued since the preceding Distribution Date on
funds on deposit in the Reserve

                                       24

<PAGE>

Account shall be retained in the Reserve Account to the extent that the
Available Reserve Account Amount is less than the Required Reserve Account
Amount, and the balance, if any, shall be deposited into the Collection Account
and included in Available Investor Finance Charge and Administrative Collections
for such Distribution Date. For purposes of determining the availability of
funds or the balance in the Reserve Account for any reason under this Indenture
Supplement, except as otherwise provided in the preceding sentence, investment
earnings on such funds shall be deemed not to be available or on deposit.

                  (c)      On or before each Distribution Date with respect to
the Controlled Accumulation Period and on the first Distribution Date with
respect to the Early Amortization Period, the Servicer shall calculate the
Reserve Draw Amount; provided, however, that such amount will be reduced to the
extent that funds otherwise would be available for deposit in the Reserve
Account under Section 4.04(a)(ix) with respect to such Distribution Date.

                  (d)      In the event that for any Distribution Date the
Reserve Draw Amount is greater than zero, the Reserve Draw Amount, up to the
Available Reserve Account Amount, shall be withdrawn from the Reserve Account on
such Distribution Date by the Indenture Trustee (acting in accordance with the
instructions of the Servicer) and deposited into the Collection Account for
application as Available Investor Finance Charge and Administrative Collections
for such Distribution Date.

                  (e)      In the event that the Reserve Account Surplus on any
Distribution Date, after giving effect to all deposits to and withdrawals from
the Reserve Account with respect to such Distribution Date, is greater than
zero, the Indenture Trustee, acting in accordance with the instructions of the
Servicer, shall withdraw from the Reserve Account and pay to the holder of the
interest of the Transferor Certificate an amount equal to such Reserve Account
Surplus.

                  (f)      Upon the earliest to occur of (i) the termination of
the Trust pursuant to Article VIII of the Trust Agreement, (ii) if the
Controlled Accumulation Period has not commenced, the first Distribution Date
relating to the Early Amortization Period and (iii) if the Controlled
Accumulation Period has commenced, the earlier of the first Distribution Date
with respect to the Early Amortization Period and the Expected Principal Payment
Date, the Indenture Trustee, acting in accordance with the instructions of the
Servicer, after the prior payment of all amounts owing to the Series 2003-[ ]
Noteholders that are payable from the Reserve Account as provided herein, shall
withdraw from the Reserve Account and pay first, to the O/C Holder for reduction
of the O/C Amount until reduced to zero and second, to the Transferor, all
amounts, if any, on deposit in the Reserve Account and the Reserve Account shall
be deemed to have terminated for purposes of this Indenture Supplement;
provided, however, that following the occurrence of an Event of Default with
respect to Series 2003-[ ] and acceleration of the maturity of the Series 2003-[
] Notes pursuant to Section 5.03 of the Indenture, the Servicer shall withdraw
from the Reserve Account all amounts on deposit therein and the Indenture
Trustee or the Servicer shall deposit such amounts in the Collection Account for
distribution to the Series 2003-[ ] Noteholders in accordance with Section 5.02
to fund any shortfalls in amounts owed to such Series 2003-[ ] Noteholders.

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<PAGE>

         Section 4.12      Determination of LIBOR.

                  (a)      On each LIBOR Determination Date, the Indenture
Trustee shall determine LIBOR on the basis of the rate for deposits in United
States dollars for a one-month period which appears on Telerate Page 3750 as of
11:00 a.m., London time, on such date. If such rate does not appear on Telerate
Page 3750, the rate for that LIBOR Determination Date shall be determined on the
basis of the rates at which deposits in United States dollars are offered by the
Reference Banks at approximately 11:00 a.m., London time, on that day to prime
banks in the London interbank market for a one-month period. The Indenture
Trustee shall request the principal London office of each of the Reference Banks
to provide a quotation of its rate. If at least two such quotations are
provided, the rate for that LIBOR Determination Date shall be the arithmetic
mean of the quotations. If fewer than two quotations are provided as requested,
the rate for that LIBOR Determination Date will be the arithmetic mean of the
rates quoted by major banks in New York City, selected by the Servicer, at
approximately 11:00 a.m., New York City time, on that day for loans in United
States dollars to leading European banks for a one-month period.

                  (b)      The Class A Note Interest Rate and Class B Note
Interest Rate applicable to the then current and the immediately preceding
Interest Periods may be obtained by telephoning the Indenture Trustee at its
Corporate Trust Office or such other address and telephone number as shall be
designated by the Indenture Trustee for such purpose by prior written notice by
the Indenture Trustee to each Series 2003-[ ] Noteholder from time to time.

                  (c)      On each LIBOR Determination Date, the Indenture
Trustee shall send to the Servicer and the Administrator by facsimile
transmission, notification of LIBOR for the following Interest Period.

         Section 4.13      Investment Instructions. Any investment instructions
required to be given to the Indenture Trustee pursuant to the terms hereof must
be given to the Indenture Trustee no later than 12:00 p.m. (New York City time)
on the date such investment is to be made. In the event the Indenture Trustee
receives such investment instruction later than such time, the Indenture Trustee
may, but shall have no obligation to, make such investment. In the event the
Indenture Trustee is unable to make an investment required in an investment
instruction received by the Indenture Trustee after 12:00 p.m. (New York City
time) on such day, such investment shall be made by the Indenture Trustee on the
next succeeding Business Day. In no event shall the Indenture Trustee be liable
for any investment not made pursuant to investment instructions received after
12:00 p.m. (New York City time) on the day such investment is requested to be
made.

         Section 4.14      Exchange of Notes for Transferor Amount. If the
Transferor purchases Series 2003-[ ] Notes from Series 2003-[ ] Noteholders, the
Transferor may, on any Distribution Date (after giving effect to all required
allocations and payments on such Distribution Date), cancel such purchased
Series 2003-[ ] Notes by delivering a written request to the Indenture Trustee
to do so; provided, however, that the Transferor may only cancel Class A and
Class B Notes it has purchased if the Rating Agency Condition has been satisfied
and a credit enhancement deficiency will not result. The Transferor may in
connection with such cancellation reduce a portion of the O/C Amount and may
(but shall not be required to) cancel

                                       26

<PAGE>

such portion of the O/C Amount; provided that the reduction in the O/C Amount
resulting from such cancellation may not result in the O/C Amount being less
than the Required O/C Amount. As a result of any cancellation of Series 2003-[ ]
Notes pursuant to this Section, (a) the Invested Amount shall be reduced by (i)
the aggregate principal amount of such purchased Series 2003-[ ] Notes and (ii)
the reduction in the O/C Amount and (b) the Transferor Amount shall be increased
in an amount equal to such reduction in the Invested Amount.

                                    ARTICLE V

                       DELIVERY OF SERIES 2003-[ ] NOTES;
              DISTRIBUTIONS; REPORTS TO SERIES 2003-[ ] NOTEHOLDERS

         Section 5.01      Delivery and Payment for the Series 2003-[ ] Notes.
With respect to the Series 2003-[ ] Notes which are in certificated form, the
Issuer shall execute and the Indenture Trustee shall authenticate the Series
2003-[ ] Notes in accordance with Section 2.03 of the Indenture. The Indenture
Trustee shall deliver those Series 2003-[ ] Notes to or upon the order of the
Trust when so authenticated.

         Section 5.02      Distributions.

                  (a)      On each Distribution Date, the Paying Agent shall
distribute to each Class A Noteholder of record on the related Record Date
(other than as provided in Section 11.02 of the Indenture) such Class A
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay interest on the Class A
Notes pursuant to this Indenture Supplement.

                  (b)      On each Distribution Date, the Paying Agent shall
distribute to each Class A Noteholder of record on the related Record Date such
Class A Noteholder's pro rata share of the amounts held by the Paying Agent that
are allocated and available on such Distribution Date to pay principal of the
Class A Notes pursuant to this Indenture Supplement.

                  (c)      On each Distribution Date, the Paying Agent shall
distribute to each Class B Noteholder of record on the related Record Date
(other than as provided in Section 11.02 of the Indenture) such Class B
Noteholder's pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Distribution Date to pay interest on the Class B
Notes pursuant to this Indenture Supplement.

                  (d)      On each Distribution Date, the Paying Agent shall
distribute to each Class B Noteholder of record on the related Record Date such
Class B Noteholder's pro rata share of the amounts held by the Paying Agent that
are allocated and available on such Distribution Date to pay principal of the
Class B Notes pursuant to this Indenture Supplement.

                  (e)      On each Distribution Date, the Paying Agent shall
distribute to the O/C Holder, in immediately available funds, the amounts held
by the Paying Agent that are allocated and available on such Distribution Date
to reduce the O/C Amount pursuant to this Indenture Supplement.

                                       27

<PAGE>

                  (f)      The distributions to be made pursuant to this Section
5.02 are subject to the provisions of Sections 2.06, 6.01 and 7.01 of the
Transfer and Servicing Agreement, Section 11.02 of the Indenture and Section
7.01 of this Indenture Supplement.

                  (g)      Except as provided in Section 11.02 of the Indenture
with respect to a final distribution, distributions to Series 2003-[ ]
Noteholders hereunder shall be made by (i) check mailed to each Series 2003-[ ]
Noteholder (at such Noteholder's address as it appears in the Note Register),
except that with respect to any Series 2003-[ ] Notes registered in the name of
the nominee of a Clearing Agency, such distribution shall be made in immediately
available funds and (ii) without presentation or surrender of any Series 2003-[
] Note or the making of any notation thereon.

         Section 5.03      Reports and Statements to Series 2003-[ ]
Noteholders.

                  (a)      On each Distribution Date, the Paying Agent, on
behalf of the Indenture Trustee, shall, provided the Servicer has delivered a
statement substantially in the form of EXHIBIT C, forward to each Series 2003-[
] Noteholder such statement substantially in the form of EXHIBIT C prepared by
the Servicer.

                  (b)      Not later than the second Business Day preceding each
Distribution Date, the Servicer shall deliver to the Owner Trustee, the
Indenture Trustee, the Paying Agent and each Rating Agency (i) a statement
substantially in the form of EXHIBIT C prepared by the Servicer and (ii) a
certificate of an Authorized Officer substantially in the form of EXHIBIT D;
provided that the Servicer may amend the form of EXHIBIT C and EXHIBIT D, from
time to time.

                  (c)      A copy of each statement or certificate provided
pursuant to paragraph (a) or (b) may be obtained by any Series 2003-[ ]
Noteholder by a request in writing to the Servicer.

                  (d)      On or before March 31 of each calendar year,
beginning with calendar year 2004, the Paying Agent, on behalf of the Indenture
Trustee, shall furnish or cause to be furnished to each Person who at any time
during the preceding calendar year was a Series 2003-[ ] Noteholder, a statement
prepared by the Servicer containing the information which is required to be
contained in the statement to Series 2003-[ ] Noteholders, as set forth in
paragraph (a) above, aggregated for such calendar year together with other
information as is required to be provided by an issuer of indebtedness under the
Code. Such obligation of the Paying Agent shall be deemed to have been satisfied
to the extent that substantially comparable information shall be provided by the
Paying Agent pursuant to any requirements of the Code as from time to time in
effect.

                  (e)      On or before March 31 of each calendar year,
beginning with calendar year 2004, the Paying Agent, on behalf of the Indenture
Trustee, shall forward to each Series 2003-[ ] Noteholder copies of each
certificate and report furnished to the Indenture Trustee pursuant to Section
3.05 or 3.06 of the Transfer and Servicing Agreement.

                                       28

<PAGE>

                                   ARTICLE VI

                       SERIES 2003-[ ] AMORTIZATION EVENTS

         Section 6.01      Series 2003-[ ] Amortization Events.  If any one of
the following events shall occur with respect to Series 2003-[ ]:

                  (a)      failure on the part of the Transferor (i) to make any
payment or deposit required by the terms of the Transfer and Servicing
Agreement, the Indenture or this Indenture Supplement on or before the date
occurring five Business Days after the date such payment or deposit is required
to be made therein or herein or (ii) duly to observe or perform in any material
respect any other covenants or agreements of the Transferor set forth in the
Transfer and Servicing Agreement, the Indenture or this Indenture Supplement,
which failure has an Adverse Effect on the Series 2003-[ ] Noteholders and which
continues unremedied and continues to materially and adversely affect the
interests of the Series 2003-[ ] Noteholders for a period of 60 days after the
date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Transferor by the Indenture Trustee, or to the
Transferor and the Indenture Trustee by any Holder of the Series 2003-[ ] Notes;

                  (b)      any representation or warranty made by the Transferor
in the Transfer and Servicing Agreement, or any information contained in a
computer file or microfiche list required to be delivered by the Transferor
pursuant to Section 2.01 or subsection 2.09(h) of the Transfer and Servicing
Agreement shall prove to have been incorrect in any material respect when made
or when delivered, which continues to be incorrect in any material respect for a
period of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Transferor by
the Indenture Trustee, or to the Transferor and the Indenture Trustee by any
Holder of the Series 2003-[ ] Notes and as a result of which an Adverse Effect
occurs with respect to the Series 2003-[ ] Noteholders and such Adverse Effect
continues for the designated period; provided, however, that a Series 2003-[ ]
Amortization Event pursuant to this subsection 6.01(b) shall not be deemed to
have occurred hereunder if the Transferor has accepted reassignment of the
related Receivable, or all of such Receivables, if applicable, during such
period in accordance with the provisions of the Transfer and Servicing
Agreement;

                  (c)      a failure by the Transferor to convey Receivables in
Additional Accounts or Participation Interests to the Trust within five Business
Days after the day on which it is required to convey such Receivables or
Participation Interests pursuant to subsection 2.09(a) of the Transfer and
Servicing Agreement;

                  (d)      any Servicer Default shall occur which has an Adverse
Effect on the Series 2003-[ ] Noteholders;

                  (e)      the average Series Portfolio Yield for any three
consecutive Due Periods is reduced to a rate which is less than the average of
the Base Rates for such period;

                  (f)      the Class A Note Principal Balance or the Class B
Note Principal Balance shall not be paid in full on the Expected Principal
Payment Date;

                                       29

<PAGE>

                  (g)      without limiting the foregoing, the occurrence of an
Event of Default with respect to Series 2003-[ ] and an acceleration of the
maturity of the Series 2003-[ ] Notes pursuant to Section 5.03 of the Indenture;
or

                  (h)      the bankruptcy or insolvency of any other receivables
seller;

then, in the case of any event described in subparagraph (a), (b) or (d) after
the applicable grace period, if any, set forth in such subparagraphs, either the
Indenture Trustee or the Holders of Series 2003-[ ] Notes evidencing more than
50% of the aggregate Outstanding Amount of Series 2003-[ ] Notes by notice then
given in writing to the Transferor and the Servicer (and to the Indenture
Trustee if given by the Series 2003-[ ] Noteholders) may declare that an
amortization event (a "SERIES 2003-[ ] AMORTIZATION EVENT") has occurred as of
the date of such notice, and, in the case of any event described in subparagraph
(c), (e), (f), (g) or (h), a Series 2003-[ ] Amortization Event shall occur
without any notice or other action on the part of the Indenture Trustee or the
Series 2003-[ ] Noteholders immediately upon the occurrence of such event.

                                  ARTICLE VII

                      REDEMPTION OF SERIES 2003-[ ] NOTES;
                   SERIES FINAL MATURITY; FINAL DISTRIBUTIONS

         Section 7.01      Optional Redemption of Series 2003-[ ] Notes.

                  (a)      On any day occurring on or after the date on which
the Note Principal Balance is reduced to 10% or less of the sum of the Class A
Note Initial Principal Balance and the Class B Note Initial Principal Balance
the Transferor shall have the option to redeem the Series 2003-[ ] Notes and the
O/C Amount, at a purchase price equal to (i) if such day is a Distribution Date,
the Reassignment Amount for such Distribution Date or (ii) if such day is not a
Distribution Date, the Reassignment Amount for the Distribution Date following
such day.

                  (b)      The Transferor shall give the Servicer and the
Indenture Trustee at least 30 days' prior written notice of the date on which
the Transferor intends to exercise such optional redemption. Not later than 1:00
p.m., New York City time, on such day the Transferor shall deposit into the
Principal Funding Account in immediately available funds the excess of the
Reassignment Amount (less the O/C Amount) over the amount, if any, on deposit in
the Principal Funding Account. The remaining Reassignment Amount shall be
distributed to the O/C Holder for reduction of the O/C Amount. Such redemption
option is subject to payment in full of the Reassignment Amount. Following such
deposit into the Principal Funding Account and such distribution to the O/C
Holder in accordance with the foregoing, the Invested Amount for Series 2003-[ ]
shall be reduced to zero and the Series 2003-[ ] Noteholders shall have no
further interest in or claim against the Trust. The Reassignment Amount shall be
distributed as set forth in subsection 7.02(a).

                                       30

<PAGE>

         Section 7.02      Series Final Maturity.

                  (a)      The amount to be paid by the Transferor with respect
to Series 2003-[ ] in connection with (i) a reassignment of Receivables to the
Transferor pursuant to Section 2.06 of the Transfer and Servicing Agreement or
(ii) an Optional Redemption of the Notes pursuant to Section 7.01, shall be the
Reassignment Amount for the first Distribution Date following the Due Period in
which the reassignment obligation arises under the Transfer and Servicing
Agreement. With respect to the Reassignment Amount deposited into the Collection
Account pursuant to Section 7.01 herein or Section 2.06 of the Transfer and
Servicing Agreement or the proceeds from any Foreclosure Remedy pursuant to
Section 5.05 of the Indenture, the Indenture Trustee shall, in accordance with
the written direction of the Servicer, not later than 1:00 p.m. New York City
time, on the related Distribution Date, make deposits or distributions of the
following amounts (in the priority set forth below and, in each case after
giving effect to any deposits and distributions otherwise to be made on such
date) in immediately available funds:

                           (i)      (x) the Class A Note Principal Balance on
         such Distribution Date will be distributed to the Paying Agent for
         payment to the Class A Noteholders and (y) an amount equal to the sum
         of (A) Class A Monthly Interest for such Distribution Date, (B) any
         Class A Monthly Interest previously due but not distributed to the
         Class A Noteholders on a prior Distribution Date and (C) the amount of
         Class A Additional Interest, if any, for such Distribution Date and any
         Class A Additional Interest previously due but not distributed to the
         Class A Noteholders on any prior Distribution Date, will be distributed
         to the Paying Agent for payment to the Class A Noteholders;

                           (ii)     (x) the Class B Note Principal Balance on
         such Distribution Date will be distributed to the Paying Agent for
         payment to the Class B Noteholders and (y) an amount equal to the sum
         of (A) Class B Monthly Interest for such Distribution Date, (B) any
         Class B Monthly Interest previously due but not distributed to the
         Class B Noteholders on a prior Distribution Date and (C) the amount of
         Class B Additional Interest, if any, for such Distribution Date and any
         Class B Additional Interest previously due but not distributed to the
         Class B Noteholders on any prior Distribution Date, will be distributed
         to the Paying Agent for payment to the Class B Noteholders; and

                           (iii)    the O/C Amount on such Distribution Date
         will be distributed to the Paying Agent for payment to the O/C Holder.

                  (b)      Notwithstanding anything to the contrary in this
Indenture Supplement, the Indenture or the Transfer and Servicing Agreement, all
amounts distributed to the Paying Agent pursuant to subsection 7.02(a) for
payment to the Series 2003-[ ] Noteholders shall be deemed distributed in full
to the Series 2003-[ ] Noteholders on the date on which such funds are
distributed to the Paying Agent pursuant to this Section and shall be deemed to
be a final distribution pursuant to Section 11.02 of the Indenture.

                                       31

<PAGE>

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

         Section 8.01      Ratification of Indenture. As supplemented by this
Indenture Supplement, the Indenture is in all respects ratified and confirmed
and the Indenture as so supplemented by this Indenture Supplement shall be read,
taken and construed as one and the same instrument.

         Section 8.02      Counterparts. This Indenture Supplement may be
executed in two or more counterparts, and by different parties on separate
counterparts, each of which shall be an original, but all of which shall
constitute one and the same instrument.

         Section 8.03 Governing Law. THIS INDENTURE SUPPLEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

         Section 8.04      Transfer of the O/C Amount. Notwithstanding anything
to the contrary in this Indenture Supplement, no interest in the O/C Amount may
be directly or indirectly sold, assigned, pledged, hypothecated, exchanged,
participated or otherwise transferred (other than in connection with the
transfer upon initial issuance to the Indenture Trustee as security for the
Series 2003-[ ] Notes) except to a Person who is a "United States person" for
United States federal income tax purposes and only upon the prior delivery of a
Tax Opinion to the Indenture Trustee, and any such transfer in violation of
these requirements shall be null and void ab initio.

         Section 8.05 Limitation of Liability. Notwithstanding any other
provision herein or elsewhere, this Agreement has been executed and delivered by
_________________, not in its individual capacity, but solely in its capacity as
Owner Trustee of the Trust, in no event shall _________________ in its
individual capacity have any liability in respect of the representations,
warranties, or obligations of the Trust hereunder or under any other document,
as to all of which recourse shall be had solely to the assets of the Trust, and
for all purposes of this Agreement and each other document, the Owner Trustee
(as such or in its individual capacity) shall be subject to, and entitled to the
benefits of, the terms and provisions of the Trust Agreement.

         Section 8.06      Perfection of Security Interest.

                  (a)      The Issuer hereby represents and warrants, as of the
closing date, that:

                           (i)      this Agreement creates a valid and
         continuing security interest (as defined in the applicable UCC) in the
         Receivables in favor of the Indenture Trustee on behalf of the Holders
         of the Notes including the Series 2003-[ ] Noteholders, which security
         interest is prior to all other liens, and is enforceable as such as
         against creditors of and purchasers from the Issuer;

                           (ii)     the Receivables constitute "accounts",
         "instruments", "chattel paper" or "general intangibles" within the
         meaning of the applicable UCC;

                                       32

<PAGE>

                           (iii)    the Issuer owns and has good and marketable
         title to the Receivables free and clear of any lien, claim or
         encumbrance of any Person;

                           (iv)     the Issuer has caused or will have caused,
         within ten days, the filing of all appropriate financing statements in
         the proper filing office in the appropriate jurisdictions under
         applicable law in order to perfect the security interest in the
         Receivables granted to the Indenture Trustee on behalf of the Holders
         of the Notes including the Series 2003-[ ] Noteholders hereunder;

                           (v)      other than the security interest granted to
         the Indenture Trustee, pursuant to this Agreement, the Issuer has not
         pledged, assigned, sold, granted a security interest in, or otherwise
         conveyed any of the Receivables. The Issuer has not authorized the
         filing of and is not aware of any financing statements against the
         Issuer that include a description of collateral covering the
         Receivables other than any financing statement relating to the security
         interest granted to the Indenture Trustee hereunder. The Issuer is not
         aware of any judgment or tax lien filings against the Issuer.

                  (b)      The Indenture Trustee may not waive a breach of any
of the foregoing representations unless prior to such waiver (1) it has notified
Standard & Poor's Rating Service ("S&P") of its intention to waive such breach
and S&P has informed the Indenture Trustee, and the Indenture Trustee has
informed the Series 2003-[ ] Noteholders, as to whether such waiver will result
in a downgrade of the Series 2003-[ ] Notes and (2) the Indenture Trustee has
subsequently received the unanimous consent of the Series 2003-[ ] Noteholders
to such waiver.

         Section 8.07      Transfer Restrictions. Each purchaser or transferee
of a Note that is a Plan or a person acting on behalf of or investing the assets
of a Plan shall be deemed to represent that its purchase and continued holding
of the Note will be covered by a U.S. Department of Labor prohibited transaction
class exemption.

         Section 8.08      Notice of Servicing Delegation. To the extent that
the Servicer delegates any of its servicing duties pursuant to Section 5.07 of
the Transfer and Servicing Agreement, other than to an affiliate thereof, the
Issuer shall provide, or cause to be provided written notice to Standard &
Poor's of such a delegation of servicing duties by the Servicer.

         Section 8.09      Zero Balance Account Removal. To the extent that a
Zero Balance Account, having a zero balance for less than 180 consecutive days,
is the subject of a removal pursuant to Section 2.10 of the Transfer and
Servicing Agreement, the Issuer shall provide, or cause to be provided, written
notice of such removal to Standard & Poor's.

         Section 8.10      Notice of Insolvency Events. To the extent that an
Insolvency Event shall occur with respect to (a) the Transferor, as specified in
Section 6.01 of the Transfer and Servicing Agreement, or (b) the Sellers, as
specified in Section 8.02 of the Transferor RPA, the Issuer shall provide, or
cause to be provided, written notice of such occurrence to Standard & Poor's.

                            [SIGNATURE PAGE FOLLOWS]

                                       33

<PAGE>

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

                           ______________________________,
                           not in its individual capacity, but solely as Owner
                           Trustee on behalf of the HOUSEHOLD CONSUMER LOAN
                           MASTER NOTE TRUST I

                           By:_____________________________________
                              Name:
                              Title:

                           _______________________________,
                           not in its individual capacity, but solely as
                           Indenture Trustee and Securities Intermediary

                           By:_____________________________________
                              Name:
                              Title:

                                       34<PAGE>

                                                                     EXHIBIT 4.3

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

                     HOUSEHOLD CONSUMER LOAN CORPORATION II,

                                   Transferor

                                       and

                            WILMINGTON TRUST COMPANY,

                                  Owner Trustee

                                 TRUST AGREEMENT

                         Dated as of September 30, 2002

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                     PAGE
                                                                                                                     ----
<S>                                                                                                                  <C>
Article I DEFINITIONS .............................................................................................    1

     Section 1.01.   Capitalized Terms.............................................................................    1
     Section 1.02.   Other Definitional Provisions.................................................................    3

Article II ORGANIZATION ...........................................................................................    3

     Section 2.01.   Name .........................................................................................    3
     Section 2.02.   Office........................................................................................    3
     Section 2.03.   Purpose and Powers............................................................................    4
     Section 2.04.   Appointment of Owner Trustee..................................................................    4
     Section 2.05.   Initial Capital Contribution of Trust Estate..................................................    4
     Section 2.06.   Declaration of Trust..........................................................................    4
     Section 2.07.   Title to Trust Property.......................................................................    5
     Section 2.08.   Situs of Trust................................................................................    5
     Section 2.09.   Representations and Warranties of Transferor..................................................    5
     Section 2.10.   Liability of Holders of the Certificates......................................................    6
     Section 2.11.   Payments and Distributions....................................................................    6

Article III CERTIFICATES ..........................................................................................    7

     Section 3.01.   Initial Ownership.............................................................................    7
     Section 3.02.   Form of Certificates..........................................................................    7
     Section 3.03.   Authentication of Certificates................................................................    7
     Section 3.04.   Restrictions on Transfer......................................................................    8
     Section 3.05.   Mutilated, Destroyed, Lost or Stolen Certificate..............................................    8
     Section 3.06.   Issuance of New Transferor Certificates.......................................................    8

Article IV ACTIONS BY OWNER TRUSTEE................................................................................   10

     Section 4.01.   Prior Notice to Transferor with Respect to Certain Matters....................................   10
     Section 4.02.   Restrictions on Power.........................................................................   10

Article V AUTHORITY AND DUTIES OF OWNER TRUSTEE....................................................................   10

     Section 5.01.   General Authority.............................................................................   10
     Section 5.02.   General Duties................................................................................   11
     Section 5.03.   Action Upon Instruction.......................................................................   11
     Section 5.04.   No Duties Except as Specified in this Agreement or in Instructions............................   12
     Section 5.05.   No Action Except under Specified Documents or Instructions....................................   12
     Section 5.06.   Restrictions..................................................................................   12

Article VI CONCERNING THE OWNER TRUSTEE............................................................................   12

     Section 6.01.   Acceptance of Trusts and Duties...............................................................   12
     Section 6.02.   Furnishing of Documents.......................................................................   14
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                                  <C>
     Section 6.03.   Representations and Warranties................................................................   14
     Section 6.04.   Reliance; Advice of Counsel...................................................................   14
     Section 6.05.   Not Acting in Individual Capacity.............................................................   15
     Section 6.06.   Owner Trustee Not Liable for Certificates, Notes or Receivables...............................   15
     Section 6.07.   Owner Trustee May Own Notes...................................................................   15
     Section 6.08.   Payments from Owner Trust Estate..............................................................   16

Article VII COMPENSATION OF OWNER TRUSTEE..........................................................................   16

     Section 7.01.   Owner Trustee's Fees and Expenses.............................................................   16
     Section 7.02.   Indemnification...............................................................................   16
     Section 7.03.   Payments to the Owner Trustee.................................................................   17
     Section 7.04.   Non-recourse Obligations......................................................................   17

Article VIII TERMINATION OF TRUST AGREEMENT........................................................................   17

     Section 8.01.   Termination of Trust Agreement................................................................   17

Article IX SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES..................................................   17

     Section 9.01.   Eligibility Requirements for Owner Trustee....................................................   18
     Section 9.02.   Resignation or Removal of Owner Trustee.......................................................   18
     Section 9.03.   Successor Owner Trustee.......................................................................   18
     Section 9.04.   Merger or Consolidation of Owner Trustee......................................................   19
     Section 9.05.   Appointment of Co-Trustee or Separate Trustee.................................................   19

Article X MISCELLANEOUS ...........................................................................................   20

     Section 10.01.  Supplements and Amendments....................................................................   20
     Section 10.02.  No Legal Title to Trust Estate in Transferor..................................................   22
     Section 10.03.  Limitations on Rights of Others...............................................................   22
     Section 10.04.  Notices.......................................................................................   22
     Section 10.05.  Severability..................................................................................   22
     Section 10.06.  Separate Counterparts.........................................................................   22
     Section 10.07.  Successors and Assigns........................................................................   23
     Section 10.08.  Nonpetition Covenants.........................................................................   23
     Section 10.09.  No Recourse...................................................................................   23
     Section 10.10.  Headings......................................................................................   23
     Section 10.11.  GOVERNING LAW.................................................................................   23
     Section 10.12.  Transferor Payment Obligation.................................................................   23
     Section 10.13.  Acceptance of Terms of Agreement..............................................................   23
     Section 10.14.  Integration of Documents......................................................................   24

EXHIBITS

     EXHIBIT A       FORM OF TRANSFEROR CERTIFICATE................................................................  A-1
</TABLE>

                                       ii

<PAGE>

                  HOUSEHOLD CONSUMER LOAN MASTER NOTE TRUST I TRUST AGREEMENT,
dated as of September 30, 2002, between HOUSEHOLD CONSUMER LOAN CORPORATION II,
a Delaware corporation, as Transferor, and WILMINGTON TRUST COMPANY, a Delaware
banking corporation, as Owner Trustee.

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.01. Capitalized Terms. For all purposes of this
Agreement, the following terms shall have the meanings set forth below:

                  "Administration Agreement" shall mean the Administration
Agreement, dated as of September 30, 2002, between the Owner Trustee and the
Administrator.

                  "Administrator" shall mean Household Finance Corporation, or
any successor Administrator under the Administration Agreement.

                  "Agreement" shall mean this Trust Agreement relating to the
Household Consumer Loan Master Note Trust I, as the same may be amended,
modified or otherwise supplemented from time to time.

                  "Certificates" shall mean, unless otherwise indicated, the
Transferor Certificates and any Supplemental Certificates.

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

                  "Corporate Trust Office" shall mean, with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee located at
Rodney Square North, 1100 North Market Street, Wilmington, DE 19890; or such
other address as the Owner Trustee may designate by notice to the Transferor, or
the principal corporate trust office of any successor Owner Trustee (the address
of which the successor Owner Trustee will notify the Transferor).

                  "ERISA" shall mean the Employee Retirement Income Security Act
of 1974, as amended.

                  "Expenses" shall have the meaning specified in Section 7.02.

                  "Foreclosure Remedy" shall have the meaning specified in the
Indenture.

                  "Indemnified Parties" shall have the meaning specified in
Section 7.02.

                  "Indenture" shall mean the Master Indenture, dated as of
September 30, 2002, between the Owner Trustee and Wells Fargo Bank Minnesota,
National Association, as Indenture Trustee, as the same may be amended,
supplemented or otherwise modified from time to time.

<PAGE>

                  "Indenture Trustee" shall mean Wells Fargo Bank Minnesota,
National Association, not in its individual capacity but solely as Indenture
Trustee under the Indenture, and any successor Indenture Trustee under the
Indenture.

                  "Issuer" shall mean the Trust.

                  "Owner" shall mean Household Consumer Loan Corporation II, and
its successors and permitted assigns, in its capacity as holder of the
Transferor Certificates.

                  "Owner Trustee" shall mean Wilmington Trust Company, a
Delaware banking corporation, not in its individual capacity but solely as owner
trustee under this Agreement (unless otherwise specified herein), and any
successor Owner Trustee hereunder.

                  "Plan" shall mean (i) an employee benefit plan (within the
meaning of Section 3(3) of ERISA) that is subject to Title I of ERISA or (ii) a
plan (within the meaning of section 4975(e)(1) of the Code) that is subject to
section 4975 of the Code.

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

                  "Supplemental Certificate" shall have the meaning specified in
subsection 3.06(b).

                  "Transfer and Servicing Agreement" shall mean the Transfer and
Servicing Agreement, dated as of September 30, 2002, among the Issuer, the
Transferor and Household Finance Corporation, as Servicer, as the same may be
amended, supplemented or otherwise modified from time to time.

                  "Transferor" shall mean Household Consumer Loan Corporation
II, in its capacity as Transferor hereunder and its successors and assigns in
such capacity.

                  "Transferor Certificate Supplement" shall have the meaning
specified in subsection 3.06(b).

                  "Transferor Certificates" shall mean the Transferor's
uncertificated interest in the Trust as set forth in Section 3.06; provided,
however, if the Transferor elects to evidence such interest in certificated form
pursuant to Section 3.06, the certificates shall be executed by the Transferor
and authenticated by or on behalf of the Owner Trustee, substantially in the
form of EXHIBIT A.

                  "Trust" shall mean the Delaware common law trust created by
this Agreement, acting by and through Wilmington Trust Company, not in its
individual capacity but solely as Owner Trustee.

                  "Trust Company" shall mean Wilmington Trust Company.

                  "Trust Estate" shall mean all right, title and interest of the
Owner Trustee in and to the property and rights assigned to the Owner Trustee
pursuant to Section 2.05 of this Agreement and Section 2.01 of the Transfer and
Servicing Agreement, all monies, investment property, instruments and other
property on deposit from time to time in the Collection Account, the Series

                                       2
<PAGE>

Accounts and the Special Funding Account and all other property of the Trust
from time to time, including any rights of the Owner Trustee pursuant to the
Transaction Documents.

                  "Trust Termination Date" shall have the meaning specified in
Section 8.01.

                  Section 1.02. Other Definitional Provisions. Capitalized terms
used herein and not otherwise defined have the meanings assigned to them in the
Transfer and Servicing Agreement or, if not defined therein, in the Indenture.

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

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

                  (c) The words "HEREOF", "HEREIN" and "HEREUNDER" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement; references to any
subsection, Section, Schedule or Exhibit are references to subsections,
Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified; and the term "INCLUDING" means "INCLUDING WITHOUT LIMITATION."

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

                                   ARTICLE II

                                  ORGANIZATION

                  Section 2.01. Name. The Trust created hereby shall be known as
"Household Consumer Loan Master Note Trust I," in which name the Owner Trustee
may conduct the business of the Trust, make and execute contracts and other
instruments and sue and be sued to the fullest extent permitted by applicable
law.

                  Section 2.02. Office. The office of the Trust shall be in care
of the Owner Trustee at the Corporate Trust Office or at such other address in
the State of Delaware as the Owner Trustee may designate by written notice to
the Indenture Trustee and the Transferor.

                                       3
<PAGE>

                  Section 2.03. Purpose and Powers. The purpose of the Trust is
and the Owner Trustee shall have the power and authority to engage in the
following activities:

                  (i)      to issue the Notes pursuant to the Indenture and the
         Certificates pursuant to this Agreement;

                  (ii)     with the proceeds of the sale of the Notes and the
         Certificates, to acquire the Receivables and related property and to
         pay the Transferor the amounts owed pursuant to Section 2.01 of the
         Transfer and Servicing Agreement;

                  (iii)    to assign, grant, pledge and mortgage the Collateral
         pursuant to the Indenture and to hold, manage and distribute to the
         Transferor and the Noteholders pursuant to the terms of this Agreement
         and the Transaction Documents any portion of the Collateral released
         from the lien of, and remitted to the Trust pursuant to, the Indenture;

                  (iv)     to enter into and perform its obligations under the
         Transaction Documents to which it is to be a party;

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

                  (vi)     to own preferred stock in the Transferor; and

                  (vii)    subject to compliance with the Transaction Documents,
         to engage in such other activities as may be required in connection
         with conservation of the Trust Estate and the making of payments to the
         Noteholders and distributions to the Transferor.

                  The Owner Trustee shall not engage in any activity other than
in connection with the foregoing or other than as required or authorized by the
terms of this Agreement or the Transaction Documents.

                  Section 2.04. Appointment of Owner Trustee. The Transferor
hereby appoints the Owner Trustee as trustee of the Trust effective as of the
date hereof, to have all the rights, powers and duties set forth herein.

                  Section 2.05. Initial Capital Contribution of Trust Estate.
The Transferor hereby assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1 and one share of preferred stock
of the Transferor. The Owner Trustee hereby acknowledges receipt in trust from
the Transferor, as of the date hereof, of the foregoing contribution, which
shall constitute the initial Trust Estate and shall be held by the Owner
Trustee. The Transferor shall pay organizational expenses of the Trust as they
may arise or shall, upon the request of the Owner Trustee, promptly reimburse
the Owner Trustee for any such expenses paid by the Owner Trustee.

                  Section 2.06. Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Trust Estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Transferor, subject
to the obligations of the Trust under the Transaction Documents

                                       4
<PAGE>

to which it is a party. It is the intention of the parties hereto that the Trust
constitute a common law trust under the laws of the State of Delaware. It is the
intention of the parties hereto that, for income and franchise tax purposes, the
Trust shall be treated as a security device and disregarded as an entity and its
assets shall be treated as owned in whole by the Transferor. The parties hereto
agree that they will take no action contrary to the foregoing intention.
Effective as of the date hereof, the Owner Trustee shall have all rights, powers
and duties set forth herein with respect to accomplishing the purposes of the
Trust.

                  Section 2.07. Title to Trust Property. Legal title to all the
Trust Estate shall be vested at all times in the Owner Trustee, a co-trustee
and/or a separate trustee, as the case may be.

                  Section 2.08. Situs of Trust. The Trust will be located and
administered in the State of Delaware. All bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Delaware or the
State of New York. The Trust shall not have any employees in any state other
than Delaware; provided, however, that nothing herein shall restrict or prohibit
the Owner Trustee from having employees within or without the State of Delaware.
Payments will be received by the Trust only in Delaware or New York, and
payments will be made by the Trust only from Delaware or New York. The only
office of the Trust will be at the Corporate Trust Office in Delaware.

                  Section 2.09. Representations and Warranties of Transferor.
The Transferor hereby represents and warrants to the Owner Trustee that:

                  (a) The Transferor is a Delaware corporation duly organized
and validly existing in good standing under the laws of the State of Delaware
and has full corporate power and authority to own its properties and to conduct
its business as such properties are presently owned and such business is
presently conducted, and to execute, deliver and perform its obligations under
this Agreement and any other document related hereto to which it is a party and
to perform its obligations as contemplated hereby and thereby.

                  (b) The Transferor is duly qualified to do business and is in
good standing (or is exempt from such requirement) in any state required in
order to conduct its business, and has obtained all necessary licenses and
approvals with respect to the Transferor, in each jurisdiction in which failure
to so qualify or to obtain such licenses and approvals would have a material
adverse effect on its ability to perform its obligations under this Agreement or
any other document related hereto to which the Transferor is a party.

                  (c) The execution and delivery of this Agreement and the
consummation of the transactions provided for in this Agreement and in the other
Transaction Documents to which the Transferor is a party have been duly
authorized by the Transferor by all necessary corporate action on its part and
each of this Agreement and the other Transaction Documents to which the
Transferor is a party will remain, from the time of its execution, an official
record of the Transferor; the Transferor has the power and authority to assign
the property to be assigned to and deposited with the Trust pursuant to Section
2.05 of this Agreement and Section 2.01 of the Transfer and Servicing Agreement.

                                       5
<PAGE>

                  (d) The execution and delivery of this Agreement, the
performance of the transactions contemplated by this Agreement and the
fulfillment of the terms hereof will not conflict with, result in any breach of
any of the material terms and provisions of, or constitute (with or without
notice or lapse of time or both) a material default under, any indenture,
contract, agreement, mortgage, deed of trust or other instrument to which the
Transferor is a party or by which it or any of its properties are bound (other
than violations of such indentures, contracts, agreements, mortgages, deeds of
trust or other instruments which, individually or in the aggregate, would not
have a material adverse effect on the Transferor's ability to perform its
obligations under this Agreement).

                  (e) The execution and delivery of this Agreement, the
performance of the transactions contemplated by this Agreement and the
fulfillment of the terms hereof will not conflict with or violate any
Requirements of Law applicable to the Transferor.

                  (f) There are no proceedings or investigations pending or, to
the best knowledge of the Transferor, threatened against the Transferor before
any court, regulatory body, administrative agency, or other tribunal or
governmental instrumentality having jurisdiction over the Transferor (i)
asserting the invalidity of any of the Transaction Documents to which the
Transferor is a party, (ii) seeking to prevent the consummation of any of the
transactions contemplated by any of the Transaction Documents to which the
Transferor is a party, (iii) seeking any determination or ruling that, in the
reasonable judgment of the Transferor, would materially and adversely affect the
performance by the Transferor of its obligations under the Transaction Documents
to which the Transferor is a party, or (iv) seeking any determination or ruling
that would materially and adversely affect the validity or enforceability of the
Transaction Documents to which the Transferor is a party.

                  Section 2.10. Liability of Holders of the Certificates. The
holders of the Certificates, shall not be personally liable for the debts or
other obligations of the Trust except to the extent provided otherwise in the
Transaction Documents.

                  Section 2.11. Payments and Distributions.

                  (a) Any amount held by the Trust with respect to the Trust
Estate which is not, and will not be, allocable to the Indenture Trustee to be
applied in accordance with the Indenture, shall be applied on the first Business
Day following each Distribution Date in the following order:

                     (i)      to the extent not otherwise paid, to pay any other
         operating or administrative expenses of the Trust; and

                     (ii)     to distribute any remaining amounts and other
         property to the holders of the Certificates.

The Servicer shall deliver a statement to the Owner Trustee setting forth the
amounts to be applied pursuant to such clauses (i) and (ii), which the Owner
Trustee may rely upon in making any payment.

                  (b) All payments and distributions required to be made to the
holders of the Certificates pursuant to this Section 2.11 shall be made to the
holders of the Certificates by wire

                                       6
<PAGE>

transfer of immediately available funds or by such other means as are acceptable
to the Owner Trustee at least five Business Days prior to such payment or
distribution; provided that, payments and distributions to the Holders of the
Certificates will only be made under this Section 2.11 to the extent that (i)
the value of the assets of the Trust exceed the value of the liabilities of the
Trust and (ii) following any such payment and distribution, the Trust will have
sufficient assets to satisfy all probable liabilities of the Trust and provided,
further, that the Owner Trustee shall assume that the provisions of clauses (i)
and (ii) are satisfied unless the Indenture Trustee informs the Owner Trustee
otherwise.

                                   ARTICLE III

                                  CERTIFICATES

                  Section 3.01. Initial Ownership. Upon the formation of the
Trust by the contribution pursuant to Section 2.05, the Transferor shall be the
Owner of the Trust.

                  Section 3.02. Form of Certificates.

                  (a) The Transferor or any Additional Transferor may elect at
any time, by written notice to the Trustee, to have its interest in the Trust be
(i) an uncertificated interest or (ii) evidenced by a certificate. The
Transferor Certificate, if certificated, will be issued in registered form,
substantially in the form of EXHIBIT A, and shall upon issue, be executed and
delivered by the Transferor to the Owner Trustee for authentication and
redelivery as provided in Section 3.03. If the Transferor or any Additional
Transferor elects to have its interest in the Trust be uncertificated, it shall
deliver to the Owner Trustee for cancellation any Transferor Certificate or
Supplemental Certificate, as the case may be, previously issued and the Owner
Trustee shall make appropriate entries in its books and records to evidence such
uncertificated interest in the Trust. The Owner Trustee shall keep with the
books and records of the Trust a register, in book-entry form, of each Person
owning any uncertificated interest in the Trust.

                  (b) The Certificates shall be executed by manual or facsimile
signature of the Owner Trustee. The Certificates bearing the manual or facsimile
signatures of individuals who were, at the time when such signatures shall have
been affixed, authorized to sign on behalf of the Trust, shall, when duly
authenticated pursuant to Section 3.03, be validly issued and entitled to the
benefits of this Agreement, notwithstanding that such individuals or any of them
shall have ceased to be so authorized prior to the authentication and delivery
of the Certificates or did not hold such offices at the date of authentication
and delivery of the Certificates.

                  Section 3.03. Authentication of Certificates. The Owner
Trustee shall authenticate and deliver the Certificate, if certificated, upon
the written order of the Transferor, signed by its chairman of the board, its
president, any vice president, secretary, any assistant treasurer or any
authorized signatory, without further corporate action by the Transferor. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein, executed by or on
behalf of the Owner Trustee by the manual signature of a duly authorized
signatory, and such certificate upon any Certificate shall be conclusive
evidence, and the

                                       7
<PAGE>

only evidence, that such Certificate has been duly authenticated and delivered
hereunder. Each Certificate shall be dated the date of its authentication.

                  Section 3.04. Restrictions on Transfer. To the fullest extent
permitted by applicable law, the Certificates (or any interest therein) may not
be sold, transferred, assigned, participated, pledged or otherwise disposed of
to any Person; provided, however, that a Certificate (or any interest therein)
may be sold, transferred, assigned, participated, pledged or otherwise disposed
of if the transferor thereof has provided (a) the Owner Trustee and the
Indenture Trustee with (i) a Tax Opinion relating to such sale, transfer,
assignment, participation, pledge or other disposition and (ii) a representation
letter from the transferee to the effect that the transferee is not a Plan and
is not acting on behalf of or investing the assets of a Plan and (b) each Rating
Agency written notice (unless such notice requirement is otherwise waived by the
Rating Agency) ten days prior to such transfer.

                  Section 3.05. Mutilated, Destroyed, Lost or Stolen
Certificate. If (a) any mutilated Certificate is surrendered to the Owner
Trustee, or the Owner Trustee receives evidence to its reasonable satisfaction
of the destruction, loss or theft of any Certificate, and (b) there is delivered
to the Owner Trustee such security or indemnity as may be required by it to hold
the Owner Trustee harmless, then, the Owner Trustee on behalf of the Trust shall
execute, and the Owner Trustee shall authenticate and deliver, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a
replacement Certificate of like tenor (including the same date of issuance) and
denomination. Upon the issuance of any replacement Certificate under this
Section, the Owner Trustee may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other reasonable expenses connected therewith. Every replacement Certificate
issued pursuant to this Section in replacement of any mutilated, destroyed, lost
or stolen Certificate shall constitute complete and indefeasible evidence of an
interest in the Trust, as if originally issued, whether or not the mutilated,
destroyed, lost or stolen Certificate shall be found at any time.

                  Section 3.06. Issuance of New Transferor Certificates.

                  (a) Taken together, the Transferor Certificates shall
represent an undivided beneficial ownership interest in the Trust Estate subject
to the lien of the Notes, including the right to receive Collections with
respect to the Receivables and other amounts at the times and in the amounts
specified in the Indenture and any Indenture Supplement to be paid to the
Transferor on behalf of all holders of the Transferor Certificates.

                  (b) In connection with the issuance of a new Series of
Investor Certificates, the designation of an Additional Transferor pursuant to
2.09(g) of the Transfer and Servicing Agreement or at any other time, a
Transferor may surrender its certificated or uncertificated Transferor
Certificate to the Owner Trustee in exchange for a newly issued certificated or
uncertificated Transferor Certificate and a second certificated or
uncertificated interest in the Transferor's interest (a "SUPPLEMENTAL
CERTIFICATE") in the Trust, the terms of which shall be defined in a supplement
(a "TRANSFEROR CERTIFICATE SUPPLEMENT") to this Agreement (which Transferor
Certificate Supplement shall be subject to Section 10.01 to the extent that it
amends any of the terms of this Agreement); to be delivered to or upon the order
of the Transferor (or the Holder of a Supplemental Certificate, in the case of
the transfer and exchange thereof); provided,

                                       8
<PAGE>

however, notwithstanding anything contained herein, any exchange of a
certificated Transferor Certificate for an uncertificated Transferor Certificate
or an uncertificated Transferor Certificate for a certificated Transferor
Certificate by the Holder of such Transferor Certificate shall not be subject to
the conditions set forth in clauses (i) through (vi) below. Except as set forth
in the proviso to the immediately preceding sentence, the issuance of any such
Supplemental Certificate shall be subject to satisfaction of the following
conditions:

                     (i)      on or before the fifth day immediately preceding
         the Transferor Certificate surrender and exchange, the Transferor shall
         have given the Owner Trustee, the Servicer, the Indenture Trustee and
         each Rating Agency notice (unless such notice requirement is otherwise
         waived) of such Transferor Certificate surrender and exchange;

                     (ii)     the Transferor shall have delivered to the Owner
         Trustee and the Indenture Trustee any related Transferor Certificate
         Supplement in form satisfactory to the Owner Trustee and the Indenture
         Trustee, executed by each party hereto (other than the Owner Trustee,
         the Indenture Trustee and the Holder of the Supplemental Certificate,
         if any);

                     (iii)    the Rating Agency Condition shall have been
         satisfied with respect to such Transferor Certificate surrender and
         exchange;

                     (iv)     such surrender and exchange will not result in any
         Adverse Effect and the Transferor shall have delivered to the Owner
         Trustee and the Indenture Trustee an Officer's Certificate, dated the
         date of such surrender and exchange to the effect that the Transferor
         reasonably believes that such surrender and exchange will not, based on
         the facts known to such officer at the time of such certification, have
         an Adverse Effect;

                     (v)      the Transferor shall have delivered to the Owner
         Trustee and Indenture Trustee (with a copy to each Rating Agency) a Tax
         Opinion, dated the date of such surrender and exchange with respect to
         such surrender and exchange; and

                     (vi)     the aggregate amount of Principal Receivables plus
         the principal amount of any Participation Interest theretofore conveyed
         to the Trust as of the date of such surrender and exchange shall be
         greater than the Required Minimum Principal Balance as of the date of
         such surrender and exchange after giving effect to such surrender and
         exchange.

                  (c) Any Supplemental Certificate held by any Person may be
transferred or exchanged only upon the delivery to the Trustee of a Tax Opinion
dated as of the date of such transfer or exchange, as the case may be, with
respect to such transfer or exchange.

                                       9
<PAGE>

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

                  Section 4.01. Prior Notice to Transferor with Respect to
Certain Matters. With respect to the following matters, unless otherwise
instructed by the Transferor, the Owner Trustee shall not take action unless at
least thirty (30) days before the taking of such action the Owner Trustee shall
have notified the Transferor:

                  (a) the initiation of any claim or lawsuit by the Trust or the
Owner Trustee (other than an action to collect on the Trust Estate) and the
settlement of any action, claim or lawsuit brought by or against the Trust or
the Owner Trustee (other than an action to collect on the Trust Estate);

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

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

                  (d) the amendment, change or modification of the
Administration Agreement, except to cure any ambiguity or to amend or supplement
any provision in a manner that would not materially adversely affect the
interests of the Transferor; or

                  (e) the appointment pursuant to the Indenture of a replacement
or successor Note Registrar or Indenture Trustee, or the consent to the
assignment by the Note Registrar, Administrator or Indenture Trustee of its
obligations under the Indenture.

                  Section 4.02. Restrictions on Power. The Owner Trustee shall
not be required to take or refrain from taking any action if such action or
inaction would be contrary to any obligation of the Owner Trustee under any of
the Transaction Documents or would be contrary to Section 2.03.

                                    ARTICLE V

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

                  Section 5.01. General Authority. The Owner Trustee is
authorized and directed to execute and deliver the Transaction Documents to
which it is a party and each certificate or other document attached as an
exhibit to or contemplated by the Transaction Documents to which the Owner
Trustee is to be a party, or any amendment thereto or other agreement, in each
case, in such form as the Transferor shall approve as evidenced conclusively by
the Owner Trustee's execution thereof and the Transferor's execution of the
related documents. In addition to the foregoing, the Owner Trustee is
authorized, but shall not be obligated, to take all actions required of the
Owner Trustee pursuant to the Transaction Documents. The Owner Trustee is
further authorized from

                                       10
<PAGE>

time to time to take such action as the Transferor or the Administrator directs
in writing with respect to the Transaction Documents.

                  Section 5.02. General Duties. It shall be the duty of the
Owner Trustee to discharge (or cause to be discharged) all of its
responsibilities pursuant to the terms of this Agreement and the other
Transaction Documents to which it is a party and to administer the Trust in the
interest of the Transferor, subject to the Transaction Documents and in
accordance with the provisions of this Agreement. Notwithstanding the foregoing,
the Owner Trustee shall be deemed to have discharged its duties and
responsibilities hereunder and under the other Transaction Documents to the
extent the Administrator has agreed in the Administration Agreement or other
Transaction Document to perform any act or to discharge any duty of the Owner
Trustee or the Trust under any Transaction Document, and the Owner Trustee shall
not be liable for the default or failure of the Administrator to carry out its
obligations under the Administration Agreement.

                  Section 5.03. Action Upon Instruction.

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

                  (b) Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of any
Transaction Document, the Owner Trustee shall promptly give notice (in such form
as shall be appropriate under the circumstances) to the Transferor requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee acts in good faith in accordance with any written instruction of
the Transferor received, the Owner Trustee shall not be liable on account of
such action to any Person. If the Owner Trustee shall not have received
appropriate instruction within ten (10) days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action, not in violation of the Transaction
Documents, as it shall deem to be in the best interest of the Transferor, and
shall have no liability to any Person for such action or inaction.

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

                                       11
<PAGE>

violation of the Transaction Documents, as it shall deem to be in the best
interests of the Transferor, and shall have no liability to any Person for such
action or inaction.

                  Section 5.04. No Duties Except as Specified in this Agreement
or in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Trust or the Trust Estate, or to otherwise take or
refrain from taking any action under, or in connection with, this Agreement or
any document contemplated hereby to which the Owner Trustee is a party, except
as expressly provided by the terms of this Agreement or in any document or
written instruction received by the Owner Trustee pursuant to Section 5.03; and
no implied duties or obligations shall be read into any Transaction Document
against the Owner Trustee. The Owner Trustee shall have no responsibility for
any filing or recording, including filing any financing or continuation
statement in any public office at any time or to otherwise perfect or maintain
the perfection of any security interest or lien granted to it hereunder or to
prepare or file any Commission filing for the Trust or to record any Transaction
Document. The Trust Company nevertheless agrees that it will, at its own cost
and expense, promptly take all action as may be necessary to discharge any liens
on any part of the Trust Estate that result from actions by, or claims against,
the Trust Company that are not related to the ownership or the administration of
the Trust Estate or the transactions contemplated by the Transaction Documents.

                  Section 5.05. No Action Except under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Trust Estate except (a) in accordance
with the powers granted to and the authority conferred upon the Owner Trustee
pursuant to this Agreement, (b) in accordance with the Transaction Documents and
(c) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 5.03.

                  Section 5.06. Restrictions. The Owner Trustee shall not take
any action (a) that, to the actual knowledge of the Owner Trustee, would violate
the purposes of the Trust set forth in Section 2.03 or (b) that, to the actual
knowledge of the Owner Trustee, would result in the Trust's becoming an
association (or publicly traded partnership) taxable as a corporation for
federal income tax purposes. In accordance with the foregoing, neither the Owner
nor any Certificateholder will, under any circumstances, and at any time, make
an election on IRS Form 8832 or otherwise, to classify the Trust as an
association taxable as a corporation for federal, state or any other applicable
tax purpose. The Transferor shall not direct the Owner Trustee to take action
that would violate the provisions of this Section.

                                   ARTICLE VI

                          CONCERNING THE OWNER TRUSTEE

                  Section 6.01. Acceptance of Trusts and Duties. The Owner
Trustee accepts the trusts hereby created and agrees to perform its duties
hereunder with respect to such trusts, but only upon the terms of this
Agreement. The Owner Trustee also agrees to disburse all moneys actually
received by it constituting part of the Trust Estate upon the terms of the
Transaction Documents.

                                       12
<PAGE>

The Owner Trustee shall not be answerable or accountable under any Transaction
Document under any circumstances, except (i) for its own willful misconduct or
negligence or (ii) in the case of the inaccuracy of any representation or
warranty contained in Section 6.03 expressly made by the Owner Trustee in its
individual capacity. In particular, but not by way of limitation (and subject to
the exceptions set forth in the preceding sentence):

                  (a) the Owner Trustee shall not be liable for any error of
judgment made in good faith by the Owner Trustee;

                  (b) the Owner Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in accordance with the instructions of
the Administrator or the Transferor;

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

                  (d) except for Section 6.03 herein, under no circumstances
shall the Owner Trustee be liable for any representation, warranty, consent or
other indebtedness evidenced by or arising under any of the Transaction
Documents, including the principal of and interest on the Notes;

                  (e) the Owner Trustee shall not be responsible for or in
respect of the validity or sufficiency of this Agreement or for the due
execution hereof by the Transferor or for the form, character, genuineness,
sufficiency, value or validity of any of the Trust Estate or for or in respect
of the validity or sufficiency of the Transaction Documents, other than the
genuineness of the signature on the certificate of authentication on the
Certificates, and the Owner Trustee shall in no event assume or incur any
liability, duty, or obligation to any Noteholder or to the Owner, other than as
expressly provided for herein or expressly agreed to in the other Transaction
Documents;

                  (f) the Owner Trustee shall not be liable for the default or
misconduct of the Transferor, the Servicer, the Administrator or the Indenture
Trustee under any of the Transaction Documents or otherwise, and the Owner
Trustee shall have no obligation or liability to perform the obligations of the
Owner Trustee under the Transaction Documents that are required to be performed
by the Administrator under the Administration Agreement, the Indenture Trustee
under the Indenture or the Servicer under the Transfer and Servicing Agreement;

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

                                       13
<PAGE>

                  (h) Notwithstanding anything contained herein to the contrary,
the Owner Trustee shall not be required to take any action in any jurisdiction
other than in the State of Delaware if the taking of such action will (i)
require the registration with, licensing by or the taking of any other similar
action in respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware by or with respect to the Owner
Trustee; (ii) result in any fee, tax or other governmental charge under the laws
of any jurisdiction or any political subdivisions thereof in existence on the
date hereof other than the State of Delaware becoming payable by the Owner
Trustee; or (iii) subject the Owner Trustee to personal jurisdiction in any
jurisdiction other than the State of Delaware for causes of action arising from
acts unrelated to the consummation of the transactions by the Owner Trustee
contemplated hereby. The Owner Trustee shall be entitled to obtain advice of
counsel (which advice shall be an expense of the Transferor) to determine
whether any action required to be taken pursuant to the Agreement results in the
consequences described in clauses (i), (ii) and (iii) of the preceding sentence.
In the event that said counsel advises the Owner Trustee that such action will
result in such consequences, the Transferor shall appoint an additional trustee
pursuant to Section 9.05 hereof to proceed with such action.

                  Section 6.02. Furnishing of Documents. The Owner Trustee shall
furnish to the Transferor and the Indenture Trustee, promptly upon written
request therefor, duplicates or copies of all reports, notices, requests,
demands, certificates, financial statements and any other instruments furnished
to the Owner Trustee under the Transaction Documents.

                  Section 6.03. Representations and Warranties. The Owner
Trustee hereby represents and warrants to the Transferor that:

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

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

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

                  Section 6.04. Reliance; Advice of Counsel.

                  (a) The Owner Trustee shall incur no liability to anyone in
acting upon any signature, instrument, notice, resolution, request, consent,
order, certificate, report, opinion, bond, or other document or paper reasonably
believed by it to be genuine and reasonably believed by it to be signed by the
proper party or parties. The Owner Trustee may accept a certified copy of a
resolution of the board of directors or other governing body of any corporate
party as conclusive

                                       14
<PAGE>

evidence that such resolution has been duly adopted by such body and that the
same is in full force and effect. As to any fact or matter the method of the
determination of which is not specifically prescribed herein, the Owner Trustee
may for all purposes hereof rely on a certificate, signed by the president or
any vice president or by the treasurer or other authorized officers of the
relevant party, as to such fact or matter, and such certificate shall constitute
full protection to the Owner Trustee for any action taken or omitted to be taken
by it in good faith in reliance thereon.

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

                  Section 6.05. Not Acting in Individual Capacity. Except as
expressly provided in this Article VI, in accepting the trusts hereby created
Wilmington Trust Company acts solely as Owner Trustee hereunder and not in its
individual capacity, and all Persons having any claim against the Owner Trustee
by reason of the transactions contemplated by any Transaction Document shall
look only to the Trust Estate for payment or satisfaction thereof.

                  Section 6.06. Owner Trustee Not Liable for Certificates, Notes
or Receivables. The recitals contained herein and in the Certificates (other
than the genuineness of the signature and counter-signature of the Owner Trustee
on the Certificates and its representations and warranties in Section 6.03)
shall be taken as the statements of the Transferor, and the Owner Trustee
assumes no responsibility for the correctness thereof. The Owner Trustee makes
no representations as to the validity or sufficiency of this Agreement, any
other Transaction Document or the Certificates (other than the genuineness of
the signature and counter-signature of the Owner Trustee on the Certificates),
the Notes, or related documents. The Owner Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of the Receivables or the perfection and priority of any security
interest in the Receivables or the maintenance of any such perfection and
priority, or for or with respect to the sufficiency of the Trust Estate or its
ability to generate the payments to be distributed to the Noteholders under the
Indenture, including, without limitation: the existence, condition and ownership
of the Receivables; the existence and contents of the Receivables on any
computer or other record thereof; the validity of the assignment of the
Receivables to the Trust or of any intervening assignment; the completeness of
the Receivables; the performance or enforcement of the Receivables; the
compliance by the Transferor with any warranty or representation made under any
Transaction Document or in any related document or the accuracy of any such
warranty or representation or any action of the Administrator, the Servicer or
the Indenture Trustee taken in the name of the Owner Trustee.

                  Section 6.07. Owner Trustee May Own Notes. The Owner Trustee
in its individual or any other capacity may become the owner or pledgee of Notes
and may deal with the

                                       15
<PAGE>

Transferor, the Administrator, the Servicer and the Indenture Trustee in banking
transactions with the same rights as it would have if it were not Owner Trustee.

                  Section 6.08. Payments from Owner Trust Estate. All payments
to be made by the Owner Trustee or any Paying Agent under this Agreement or any
of the Transaction Documents or, with respect to Certificates, any Series
Supplement or any Series related Document to which the Trust or the Owner
Trustee is a party shall be made only from the income and proceeds of the Trust
Estate and only to the extent that the Owner Trustee shall have received income
or proceeds from the Trust Estate to make such payments in accordance with the
terms hereof. Wilmington Trust Company, or any successor thereto, in its
individual capacity, shall not be liable for any amounts payable under this
Agreement or any of the Transaction Documents or, with respect to the Notes, the
Certificates or any Series related document to which the Trust or the Owner
Trustee is a party.

                                   ARTICLE VII

                          COMPENSATION OF OWNER TRUSTEE

                  Section 7.01. Owner Trustee's Fees and Expenses. The Trust
Company shall receive as compensation for its services hereunder such fees as
have been separately agreed upon before the date hereof between the Transferor
and the Trust Company, and the Trust Company shall be entitled to be reimbursed
by the Transferor for its other reasonable expenses hereunder, including the
reasonable compensation, expenses and disbursements of such agents,
representatives, experts and counsel as the Trust Company may employ in
connection with the exercise and performance of its rights and its duties
hereunder; provided, however, that the Trust Company's right to enforce such
obligation shall be subject to the provisions of Section 10.08.

                  Section 7.02. Indemnification. To the fullest extent permitted
by law, the Transferor shall be liable as primary obligor for, and shall
indemnify the Trust Company, the Owner Trustee and its successors, assigns,
agents, employees and servants (collectively, the "INDEMNIFIED PARTIES") from
and against, any and all liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable costs, expenses and
disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever (collectively, "EXPENSES") which may at any time be imposed
on, incurred by, or asserted against the Owner Trustee or any Indemnified Party
in any way relating to or arising out of the Transaction Documents, the Trust
Estate, the acceptance and administration of the Trust Estate or the action or
inaction of the Owner Trustee hereunder; provided that the Transferor shall not
be liable for or required to indemnify any Indemnified Party from and against
Expenses arising or resulting from any of the matters described in the third
sentence of Section 6.01; provided further, that the Transferor shall not be
liable for or required to indemnify an Indemnified Party from and against
expenses arising or resulting from (i) the Indemnified Party's own willful
misconduct, bad faith or negligence, or (ii) the inaccuracy of any
representation or warranty contained in Section 6.03 made by the Indemnified
Party. An Indemnified Party's right to enforce such obligation shall be subject
to the provisions of Section 10.08. The indemnities contained in this Section
7.02 shall survive the resignation or removal of the Owner Trustee or the
termination of this Agreement. In the event of

                                       16
<PAGE>

any claim, action or proceeding for which indemnity will be sought pursuant to
this Section 7.02, the Owner Trustee's choice of legal counsel shall be subject
to the approval of the Transferor, which approval shall not be unreasonably
withheld.

                  Section 7.03. Payments to the Owner Trustee. Any amounts paid
to an Indemnified Party pursuant to this Article VII shall be deemed not to be a
part of the Trust Estate immediately after such payment.

                  Section 7.04. Non-recourse Obligations. Notwithstanding
anything in this Agreement or any Transaction Document or, with respect to
Certificates or Notes, any Indenture Supplement or any Series related document,
the Owner Trustee agrees in its individual capacity and in its capacity as Owner
Trustee for the Trust that all obligations of the trust to the Owner Trustee
individually or as Owner Trustee for the Trust shall be recourse to the Trust
Estate only and specifically shall not be recourse to the assets of any
Certificateholder or Owner.

                                  ARTICLE VIII

                         TERMINATION OF TRUST AGREEMENT

                  Section 8.01. Termination of Trust Agreement.

                  (a) The Trust shall terminate upon the earlier of (i)
dissolution of the Trust in accordance with applicable law, (ii) at the option
of the Transferor, the day on which the right of all series of Notes to receive
payments from the Trust Estate has terminated (the "TRUST TERMINATION DATE") and
(iii) September 1, 2023. Any money or other property held as part of the Trust
Estate following such termination shall be distributed to the Transferor. The
bankruptcy, liquidation, dissolution, termination, death or incapacity of the
Transferor shall not (x) operate to terminate this Agreement or the Trust, or
(y) entitle the Transferor's legal representatives or heirs to claim an
accounting or to take any action or proceeding in any court for a partition or
winding up of all or any part of the Trust or Trust Estate or (z) otherwise
affect the rights, obligations and liabilities of the parties hereto.

                  (b) Except as provided in subsection 8.01(a), so long as the
Indenture shall not have been terminated in accordance with its terms, this
Agreement and the Trust created hereby are irrevocable by the Transferor, unless
the Indenture Trustee consents in writing to the termination.

                  (c) Upon the winding up of the Trust, this Agreement (other
than Article VII) shall terminate.

                                   ARTICLE IX

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

                                       17
<PAGE>

                  Section 9.01. Eligibility Requirements for Owner Trustee. The
Owner Trustee shall at all times be a corporation authorized to exercise
corporate trust powers; having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by federal or state
authorities; and having (or having a parent which has) a long-term unsecured
rating of at least Baa3 by Moody's, at least BBB- by Standard & Poor's and, if
rated by Fitch, at least BBB- by Fitch, or otherwise satisfactory to each Rating
Agency. If such corporation shall publish reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purpose of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Owner Trustee shall cease to be eligible in accordance with
the provisions of this Section, the Owner Trustee shall resign immediately in
the manner and with the effect specified in Section 9.02.

                  Section 9.02. Resignation or Removal of Owner Trustee. The
Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Transferor; provided, however,
that such resignation and discharge shall only be effective upon the appointment
of a successor Owner Trustee. Upon receiving such notice of resignation, the
Transferor shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee. If no
successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.

                  If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 9.01 and shall fail to resign after
written request therefor by the Transferor, or if at any time the Owner Trustee
shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a
receiver of the Owner Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Transferor may, but shall not be required to, remove the
Owner Trustee. If the Transferor shall remove the Owner Trustee under the
authority of the immediately preceding sentence, the Transferor shall promptly
(i) appoint a successor Owner Trustee by written instrument, in duplicate, one
copy of which instrument shall be delivered to the outgoing Owner Trustee so
removed and one copy to the successor Owner Trustee and (ii) pay all fees owed
to the outgoing Owner Trustee.

                  Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section shall not become effective until acceptance of appointment by the
successor Owner Trustee pursuant to Section 9.03 and payment of all fees and
expenses owed to the outgoing Owner Trustee. The Transferor shall provide notice
of such resignation or removal of the Owner Trustee to each Rating Agency.

                  Section 9.03. Successor Owner Trustee. Any successor Owner
Trustee appointed pursuant to Section 9.02 shall execute, acknowledge and
deliver to the Transferor and to its predecessor Owner Trustee an instrument
accepting such appointment under this Agreement, and thereupon the resignation
or removal of the predecessor Owner Trustee shall become effective and such
successor Owner Trustee, without any further act, deed or conveyance, shall
become fully

                                       18
<PAGE>

vested with all the rights, powers, duties, and obligations of its predecessor
under this Agreement, with like effect as if originally named as Owner Trustee.
The predecessor Owner Trustee shall upon payment of its fees and expenses
deliver to the successor Owner Trustee all documents and statements and monies
held by it under this Agreement; and the Transferor and the predecessor Owner
Trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties, and obligations.

                  No successor Owner Trustee shall accept appointment as
provided in this Section 9.03 unless at the time of such acceptance such
successor Owner Trustee shall be eligible pursuant to Section 9.01.

                  Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section, the Transferor shall mail notice of such acceptance of
appointment including the name of such successor Owner Trustee to the Indenture
Trustee, the Noteholders and each Rating Agency. If the Transferor shall fail to
mail such notice within ten (10) days after acceptance of appointment by the
successor Owner Trustee, the successor Owner Trustee shall cause such notice to
be mailed at the expense of the Transferor.

                  Section 9.04. Merger or Consolidation of Owner Trustee.
Notwithstanding anything herein to the contrary, any corporation into which the
Owner Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to
which the Owner Trustee shall be a party, or any corporation succeeding to all
or substantially all of the corporate trust business of the Owner Trustee, shall
be the successor of the Owner Trustee hereunder (provided that such corporation
shall meet the eligibility requirements set forth in Section 9.01), without the
execution or filing of any instrument or any further act on the part of any of
the parties hereto; provided, further, that the Owner Trustee shall mail notice
of such merger or consolidation to each Rating Agency.

                  Section 9.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Estate may at the time be located, the Transferor and the Owner
Trustee acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by each of the Transferor
and the Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or
separate trustee or separate trustees, of all or any part of the Trust Estate,
and to vest in such Person, in such capacity, such title to the Trust Estate, or
any part thereof, and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Transferor and the Owner
Trustee may consider necessary or desirable. If the Transferor shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, the Owner Trustee alone shall have the power to make such appointment.
No co-trustee or separate trustee under this Agreement shall be required to meet
the terms of eligibility as a successor trustee pursuant to Section 9.01 and no
notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 9.03.

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

                                       19
<PAGE>

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

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

                     (iii)    the Transferor and the Owner Trustee acting
         jointly may at any time accept the resignation of or remove any
         separate trustee or co-trustee.

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

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

                                    ARTICLE X

                                  MISCELLANEOUS

                  Section 10.01. Supplements and Amendments. This Agreement may
be amended from time to time, by a written amendment duly executed and delivered
by the Transferor and the Owner Trustee, with the written consent of the
Indenture Trustee and 10 days prior written notice to the Rating Agencies, but
without the consent of any of the Noteholders, to cure any ambiguity, to correct
or supplement any provisions in this Agreement or for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement

                                       20
<PAGE>

or modifying in any manner the rights of the Noteholders; provided, however,
that such amendment will not (i) as evidenced by an Officer's Certificate of the
Transferor addressed and delivered to the Owner Trustee and the Indenture
Trustee, materially and adversely affect the interest of any Noteholder or the
Owner and (ii) as evidenced by an Opinion of Counsel addressed and delivered to
the Owner Trustee and the Indenture Trustee, cause the Trust to be classified as
an association (or a publicly traded partnership) taxable as a corporation for
federal income tax purposes; provided, further, that Section 2.03 of this
Agreement may be amended only with the consent of the Holders of Notes
evidencing not less than a majority of the Outstanding Amount of the Notes.
Additionally, notwithstanding the preceding sentence, this Agreement will be
amended by the Transferor and the Owner Trustee without the consent of the
Indenture Trustee or any of the Noteholders to add, modify or eliminate such
provisions as may be necessary or advisable in order to enable all or a portion
of the Trust (i) to qualify as, and to permit an election to be made to cause
the Trust to be treated as, a "financial asset securitization investment trust"
as described in the provisions of Section 860L of the Code, and (ii) to avoid
the imposition of state or local income or franchise taxes imposed on the
Trust's property or its income; provided, however, that (i) the Transferor
delivers to the Indenture Trustee and the Owner Trustee an Officer's Certificate
to the effect that the proposed amendments meet the requirements set forth in
this subsection, (ii) each Rating Agency will have notified the Transferor, the
Servicer, the Indenture Trustee and the Owner Trustee in writing that the
amendment will not result in a reduction or withdrawal of the rating of any
outstanding Series or Class as to which it is a Rating Agency and (iii) such
amendment does not affect the rights, duties or obligations of the Owner Trustee
hereunder. The amendments which the Transferor may make without the consent of
Noteholders pursuant to the preceding sentence may include, without limitation,
the addition of a sale of Receivables.

                  This Agreement may also be amended from time to time by a
written amendment duly executed and delivered by the Transferor and the Owner
Trustee, with prior written notice to each Rating Agency, with the consent of
the Indenture Trustee and, the Holders of Notes evidencing not less than a
majority of the Outstanding Amount of the Notes, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Noteholders;
provided, however, that without the consent of all Noteholders no such amendment
shall (a) increase or reduce in any manner the amount of, or accelerate or delay
the timing of distributions that are required to be made for the benefit of the
Noteholders or (b) reduce the aforesaid percentage of the Outstanding Amount of
the Notes, the Holders of which are required to consent to any such amendment;
provided, further, such amendment shall be subject to delivery to the Indenture
Trustee of a Tax Opinion.

                  Promptly after the execution of any such amendment or consent,
the Transferor shall furnish written notification of the substance of such
amendment or consent to the Indenture Trustee and each Rating Agency.

                  It shall not be necessary for the consent of the Noteholders
pursuant to this Section to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve
the substance thereof.

                                       21
<PAGE>

                  The Owner Trustee shall be entitled to receive, and shall be
fully protected in relying upon, an officer's certificate of the Transferor to
the effect that the conditions to such amendment have been satisfied.

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

                  Section 10.02. No Legal Title to Trust Estate in Transferor.
The Transferor shall not have legal title to any part of the Trust Estate. No
transfer, by operation of law or otherwise, of any right, title, and interest of
the Transferor to and in its beneficial ownership interest in the Trust Estate
shall operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any part
of the Trust Estate.

                  Section 10.03. Limitations on Rights of Others. The provisions
of this Agreement are solely for the benefit of the Owner Trustee, the
Transferor, the holder of any Certificate and, to the extent expressly provided
herein, the Indenture Trustee and the Noteholders, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Trust Estate or
under or in respect of this Agreement or any covenants, conditions or provisions
contained herein.

                  Section 10.04. Notices. Unless otherwise expressly specified
or permitted by the terms hereof, all notices shall be in writing and shall be
deemed given upon receipt by the intended recipient or three Business Days after
mailing if mailed by certified mail, postage prepaid (except that notice to the
Owner Trustee or Indenture Trustee shall be deemed given only upon actual
receipt by the Owner Trustee or Indenture Trustee), if to the Owner Trustee,
addressed to the Corporate Trust Office; if to the Indenture Trustee, addressed
to Wells Fargo Bank Minnesota, National Association, Sixth Street and Marquette
Avenue, MAC N9311-161, Minneapolis, Minnesota 55479, if to the Transferor,
addressed to Household Consumer Loan Corporation II, 1111 Town Center Drive, Las
Vegas, Nevada 89134, Attention: President, if to Fitch, addressed to Fitch,
Inc., One State Street Plaza, New York, NY 10004, Attention: ABS Surveillance,
if to Moody's, addressed to Moody's Investors Service Inc., 99 Church Street,
New York, NY 10007, Attention: ABS Monitoring Group, if to Standard & Poor's,
addressed to Standard & Poor's Ratings Group, 55 Water Street, New York, NY
10041 or, as to each party, at such other address as shall be designated by such
party in a written notice to each other party.

                  Section 10.05. Severability. Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                  Section 10.06. Separate Counterparts. This Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

                                       22
<PAGE>

                  Section 10.07. Successors and Assigns. All covenants and
agreements contained herein shall be binding upon, and inure to the benefit of,
the Owner Trustee and its successors and the Transferor and its successors and
permitted assigns, all as herein provided. Any request, notice, direction,
consent, waiver or other instrument or action by the Transferor shall bind the
successors and assigns of the Transferor.

                  Section 10.08. Nonpetition Covenants. Notwithstanding any
prior termination of the Trust or this Agreement, the Owner Trustee (not in its
individual capacity) shall not at any time with respect to the Trust or the
Transferor, acquiesce, petition or otherwise invoke or cause the Trust or the
Transferor to invoke the process of any court or governmental authority for the
purpose of commencing or sustaining a case against the Trust or the Transferor
under any federal or state bankruptcy, insolvency or similar law or appointing a
receiver, conservator, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Trust or the Transferor or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Trust or the Transferor; provided, however, that this Section 10.08 shall not
operate to preclude any remedy described in Article V of the Indenture.

                  Section 10.09. No Recourse. Each Person owning or holding a
Certificate by accepting the Certificates (other than the Trust) acknowledges
that the Certificates do not represent interest in or obligations of the
Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any
Affiliate thereof (other than the Trust), and no recourse may be had against
such parties or their assets, or against the assets pledged under the Indenture,
except as expressly provided in the Transaction Documents.

                  Section 10.10. Headings. The headings of the various Articles
and Sections herein are for convenience of reference only and shall not define
or limit any of the terms or provisions hereof.

                  Section 10.11. GOVERNING LAW. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS, AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                  Section 10.12. Transferor Payment Obligation. The Transferor
shall be responsible for payment of the Administrator's fees under the
Administration Agreement (to the extent not paid pursuant to the applicable
Indenture Supplement) and shall reimburse the Administrator for all expenses and
liabilities of the Administrator incurred thereunder.

                  Section 10.13. Acceptance of Terms of Agreement. THE RECEIPT
AND ACCEPTANCE OF THE TRANSFEROR CERTIFICATE BY THE TRANSFEROR, WITHOUT ANY
SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL
ACCEPTANCE BY THE TRANSFEROR OF ALL THE TERMS AND PROVISIONS OF THIS AGREEMENT,
AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST THAT THE TERMS AND PROVISIONS OF
THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE TRUST
AND THE TRANSFEROR.

                                       23
<PAGE>

                  Section 10.14. Integration of Documents. This Agreement
constitutes the entire agreement of the parties hereto and thereto with respect
to the subject matter hereof and thereof and supersedes all prior agreements
relating to the subject matter hereof and thereof.

                           [Signature Page to Follow]

                                       24
<PAGE>

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

                                         WILMINGTON TRUST COMPANY,

                                         By: /s/ Donald G. MacKelcan
                                             -----------------------------------
                                             Name: Donald G. MacKelcan
                                             Title: Vice President

                                         HOUSEHOLD CONSUMER LOAN CORPORATION II,
                                         as Transferor,

                                         By: /s/ S.H. Smith
                                             -----------------------------------
                                             Name: S.H. Smith
                                             Title: Vice President and Treasurer

                                       25
<PAGE>

                                                                       EXHIBIT A

                         FORM OF TRANSFEROR CERTIFICATE

                  THIS TRANSFEROR CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. NEITHER THIS TRANSFEROR CERTIFICATE NOR ANY
PORTION HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE WITH THE REGISTRATION
PROVISIONS OF SUCH ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH
REGISTRATION PROVISIONS.

                  THIS TRANSFEROR CERTIFICATE IS NOT PERMITTED TO BE
TRANSFERRED, ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN
COMPLIANCE WITH THE TERMS OF THE TRANSFER AND SERVICING AGREEMENT REFERRED TO
HEREIN.

No. R-____                                                        ____% Interest

                   HOUSEHOLD CONSUMER LOAN MASTER NOTE TRUST I
                             TRANSFEROR CERTIFICATE

                     THIS CERTIFICATE REPRESENTS AN INTEREST
                            IN CERTAIN ASSETS OF THE
                   HOUSEHOLD CONSUMER LOAN MASTER NOTE TRUST I

                  Evidencing an interest in a trust, the corpus of which
consists primarily of an interest in receivables generated from time to time in
the ordinary course of business in a portfolio of consumer loan accounts
transferred by Household Consumer Loan Corporation II (the "TRANSFEROR").

               (Not an interest in or obligation of the Transferor
                            or any affiliate thereof)

                  This certifies that HOUSEHOLD CONSUMER LOAN CORPORATION II is
the registered owner of an undivided beneficial ownership interest in the assets
of a trust (the "TRUST") subject to the lien of the Noteholders pursuant to the
Master Indenture dated as of September 30, 2002 (as amended and supplemented,
the "INDENTURE") between the Trust and Wells Fargo Bank Minnesota, National
Association, as Indenture Trustee and not allocated to the interest of any
Holder of a Supplemental Certificate pursuant to the Trust Agreement dated as of
September 30, 2002 (as amended and supplemented, the "TRUST AGREEMENT"), between
Household Consumer Loan Corporation II, a Delaware corporation, as Transferor,
and Wilmington Trust Company, as owner trustee (the "OWNER TRUSTEE"). The corpus
of the Trust consists of (a) a portfolio of certain receivables (the
"RECEIVABLES") existing in the consumer loan accounts identified under the
Transfer and Servicing Agreement dated as of September 30, 2002 (the "TRANSFER
AND SERVICING AGREEMENT"), among the Transferor, Household Finance Corporation,
as Servicer (the "SERVICER") and the Trust, as Issuer from time to time (the
"ACCOUNTS"), (b) certain Receivables generated under the Accounts from time to
time thereafter, (c) certain funds collected or to be collected from
accountholders in respect of the Receivables, (d) all funds which are from

<PAGE>

time to time on deposit in the Collection Account, Special Funding Account and
in the Series Accounts, (e) the benefits of any Series Enhancements issued and
to be issued by Series Enhancers with respect to one or more Series of Notes and
(f) all other assets and interests constituting the Trust, including Recoveries
allocated to the Trust pursuant to the Transfer and Servicing Agreement.
Although a summary of certain provisions of the Transfer and Servicing
Agreement, the Trust Agreement and the Indenture (collectively, the
"AGREEMENTS") is set forth below, this Certificate does not purport to summarize
the Agreements and reference is made to the Agreements for information with
respect to the interests, rights, benefits, obligations, proceeds and duties
evidenced hereby and the rights, duties and obligations of the Owner Trustee. A
copy of the Agreements may be requested from the Owner Trustee by writing to the
Owner Trustee at the Corporate Trust Office. To the extent not defined herein,
the capitalized terms used herein have the meanings ascribed to them in the
Agreements.

                  This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreements, to which Agreements, as amended and
supplemented from time to time, the Transferor by virtue of the acceptance
hereof assents and is bound.

                  The Receivables consist of Principal Receivables which arise
from amounts advanced to obligors and Finance Charge and Administration
Receivables which arise generally from Periodic Finance Charges, Late Fees and
other fees and charges with respect to the Accounts.

                  This Certificate is the Transferor Certificate, which
represents the undivided beneficial interest in certain assets of the Trust,
subject to the lien of the Notes, including the right to receive a portion of
the Collections and other amounts at the times and in the amounts specified in
the Indenture. In addition to the Transferor Certificate, (a) Notes will be
issued to investors pursuant to the Indenture, which will represent obligations
of the Trust, and (b) Supplemental Certificates may be issued pursuant to the
Trust Agreement.

                  Unless otherwise specified in an Indenture Supplement with
respect to a particular Series the Transferor has entered into the Transfer and
Servicing Agreement, and this Certificate is issued, with the intention that,
for federal, state and local income and franchise tax purposes, (a) the Notes of
each Series which are characterized as indebtedness at the time of their
issuance will qualify as indebtedness of the Transferor secured by the
Receivables and (b) the Trust shall not be treated as an association (or a
publicly traded partnership) taxable as a corporation. The Transferor, by
entering into the Transfer and Servicing Agreement and by the acceptance of this
Transferor Certificate, agrees to treat the Notes for all federal, state and
local income and franchise tax purposes as indebtedness of the Transferor.

                  Subject to certain conditions and exceptions specified in the
Agreements, the obligations created by the Agreements and the Trust created
thereby shall terminate on the Trust Termination Date.

                                       A-2

<PAGE>

                  Unless the certificate of authentication hereon has been
executed by or on behalf of the Owner Trustee, by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose.

                  IN WITNESS WHEREOF, this Certificate to be duly executed by
the Owner Trustee.

                                      WILMINGTON TRUST COMPANY,
                                      not in its individual capacity but solely
                                      as Owner Trustee on behalf of the
                                      HOUSEHOLD CONSUMER LOAN MASTER
                                      NOTE TRUST I

                                      By: ______________________________________

                                          Name:
                                          Title:

Dated: [_________ __, ____]

                                       A-3

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is the Transferor Certificate described in the
within-mentioned Agreement.

                                      WILMINGTON TRUST COMPANY,
                                      not in its individual capacity but solely
                                      as Owner Trustee on behalf of the
                                      HOUSEHOLD CONSUMER LOAN MASTER
                                      NOTE TRUST I

                                      By: ______________________________________
                                          Authorized Signatory

                                       A-4

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