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                                                                    EXHIBIT 10.5

                            HOUSEHOLD INTERNATIONAL
              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                         (as amended November 11, 2001)

1.  Purpose
    -------

         The purpose of the Household International 1996 Long-Term Executive
Incentive Compensation Plan (the "Plan") is to further the long-term growth of
Household International, Inc. and its subsidiaries ("Household") by
strengthening the ability of Household to attract and retain employees of
outstanding ability, to provide an effective means for employees to acquire and
maintain ownership of Household Common Stock, to motivate such employees to
achieve long-range performance goals and objectives, and to provide incentive
compensation opportunities competitive with those of other major corporations.
Household senior executives, in particular, are charged with enhancing
shareholder value and except under extraordinary circumstances, will only
receive options under this Plan. The options, if granted, to Household senior
executives will comprise a significant portion of their total annual
compensation. In addition, the Plan provides for the issuance of options to
purchase Household Common Stock to non-employee Directors of Household in order
to facilitate ownership of Household Common Stock by Directors and to more fully
align the interests of Household's Directors with that of its Common
stockholders.

2.  Administration
    --------------

         The Plan shall be administered by the Compensation Committee of
Household's Board of Directors (the "Committee"), a committee of the Board
appointed from time to time by the Board consisting solely of two or more
non-employee directors, each of whom shall be an "outside director" as defined
in Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code")
and the regulations thereunder and a "disinterested person" as defined in Rule
16b-3 under Section 16(b) of the Securities Exchange Act of 1934 (the "Exchange
Act"). The Committee shall have such powers to administer the Plan as are
delegated to it by the Plan and the Board of Directors, including, to the extent
permissible under the terms of the Plan, the power to interpret the Plan and any
agreements executed thereunder, to prescribe rules and regulations relating to
the Plan, to determine the terms, restrictions, and provisions of any agreement
relating to awards granted pursuant to the Plan, and to make all other
determinations necessary or advisable for administering the Plan. Except as
required by Rule 16b-3 (or any successor Rule thereto) with respect to grants of
awards to individuals who are subject to Section 16 of the Exchange Act or as
otherwise required for compliance with Rule 16b-3 or other applicable law, the
Committee

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may delegate all or any part of its authority under the Plan to any officer of
Household. All decisions made by the Committee, or (unless the Committee has
specified an appeal process to the contrary) any other person to whom the
Committee has delegated authority pursuant to the provisions hereof, shall be
final and binding on all persons.

3.  Grant of Awards; Shares Subject to Plan
    ---------------------------------------

         (a) The Committee may grant any type of award permitted under the terms
of the Plan to employees (all such awards in the aggregate being hereinafter
referred to as "Awards"). Employees of Household and its subsidiaries may be
selected by the Committee for Awards under the Plan. In addition, non-employee
Directors of Household will receive options pursuant to the provisions of
Section 6.

         (b) The number of shares of Common Stock of Household that may be
issued under the Plan is equal to the sum of the number of shares remaining
available under the Household International Long-Term Executive Incentive
Compensation Plan (the "1984 Plan") plus 24,000,000, all of which shares may be
made subject to options. The shares issued pursuant to an Award may consist of
authorized and unissued shares of Household's Common Stock, Common Stock held in
Household's treasury or Common Stock purchased on the open market. If any Award
granted under the Plan or the 1984 Plan shall terminate or lapse for any reason,
any shares of Common Stock subject to such Award shall again be available for
grant under the Plan. The maximum number of shares or share equivalents that may
be granted through an Award to any one participant in one year is 1,200,000
shares.

         (c) In the event of corporate changes affecting Household's Common
Stock, this Plan or Awards granted to employees and options granted to
non-employee Directors hereunder (including, without limiting the generality of
the foregoing, stock dividends, stock splits, recapitalizations,
reorganizations, mergers, consolidations, or other relevant changes in
capitalization), appropriate adjustments in price, number and kind of shares of
Common Stock or other consideration subject to such Awards or in the terms of
such Awards, shall be made so as to prevent dilution or enlargement of rights
under the Awards. In addition, the aggregate number or remaining number or kind
of shares which may be issued under the Plan will be adjusted to equitably
reflect any such corporate changes.

         (d) The Committee may, in its discretion and subject to such rules as
it may adopt, permit an employee to satisfy, in whole or in part, withholding
tax obligations incurred in connection with Awards: (i) by electing to have
Household withhold shares of Household Common Stock (otherwise deliverable

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to the employee in connection with an Award) in payment for the minimum required
withholding tax obligation of Household, or (ii) by delivering shares of
Household Common Stock owned by such employee in payment for a withholding tax
obligation, or (iii) by obtaining an extension of credit from Household in
payment for the withholding tax obligation. Any shares of Common Stock delivered
by an employee in full or partial payment of withholding tax obligations must
have been held by such employee at least six months prior to the date such
shares are delivered in payment.

         (e) The Committee may provide that any Award to employees under the
Plan earn dividend equivalents. Such dividend equivalents may be paid currently
or may be credited to a participant's account, including during any deferral
period. Any crediting of dividend equivalents may be subject to such
restrictions and conditions as the Committee may establish, including
reinvestment in additional shares or share equivalents. However, the payment of
dividend equivalents will not be conditioned upon the employee exercising an
option.

         (f) Except as may be provided in the agreement for any specific
employee Award or otherwise limited in this Plan, the Committee may, in its sole
discretion, in whole or in part, waive any restrictions or conditions applicable
to, or accelerate the vesting of, any Award to an employee.

         (g) To the extent the Committee deems it necessary, appropriate or
desirable to comply with foreign law or practice and to further the purpose of
this Plan, the Committee may, without amending this Plan, (i) establish special
rules applicable to Awards granted to employees who are foreign nationals, are
employed outside the United States, or both, including rules that differ from
those set forth in this Plan and (ii) grant Awards to such employees in
accordance with those rules.

         (h) The Committee may, in its discretion and subject to such rules as
it may adopt, authorize an extension of credit from Household to an employee
holding an award granted under this Plan (including an employee who is an
officer or director of Household) to assist the employee in settling withholding
tax obligations on Awards. Household may extend or guarantee loans under this
provision. Except for existing variable rate loans referred to below, loans will
not be made under this provision to assist the employee in paying the exercise
price for stock options. Loans extended under the Plan will bear interest,
compounded semiannually, at the applicable rate in effect under Section 1274 (d)
of the Internal Revenue Code (the "Applicable Federal Rate") on the day the loan
is made. The Committee may, in its discretion, permit employees with existing
variable rate loans made under the Plan, to convert said loans to fixed rate

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loans which will bear interest, compounded semiannually, at the Applicable
Federal Rate in effect on the day the loan is converted; provided, however, that
the fixed interest rate will not be set below the rate required to avoid
creation of cancellation of indebtedness income for Federal income tax purposes.
Payment terms will be established by the Committee and may or may not require
periodic payments of interest and/or principal. The term of loans will be
established by the Committee, as well as provisions governing the acceleration
of maturity upon termination of employment or default. Loans financed or
guaranteed by Household will be secured by retention of the issued stock
certificates by Household and execution of an agreement with respect to such
shares. To the extent necessary to satisfy the provisions of Regulation G or
another similar regulatory restriction, other security may be required by the
Committee.

4.  Employee Options
    ----------------

         (a) The Committee may grant to employees any type of statutory or
non-statutory option to purchase shares of Household Common Stock as is
permitted by law at the time the option is granted. The term of the initial
grant of each option shall not be more than ten years and one day from the date
of grant and may be exercised at the rate set by the Committee or as stated
herein; provided, however, that no option shall be exercised less than one year
from the date of grant, except as provided herein. The Committee may, in its
discretion, extend the expiration date of certain outstanding employee options,
provided no expiration date of any option may exceed fifteen years from the date
of the grant of that option.

         (b) The per share purchase price of Household Common Stock which may be
acquired pursuant to an employee option shall be at least 100% of the fair
market value of one share of Common Stock of Household on the date on which the
option is granted. Within this limitation, such price shall be determined by the
Committee.

         (c) Payment for shares purchased upon the exercise of an employee
option shall be made in cash or, in the discretion of the Committee, in shares
of Common Stock of Household valued at the then fair market value of such shares
or by a combination of cash and shares of Common Stock. Any shares of Common
Stock surrendered by an employee in full or partial payment of the exercise
price of an option must have been held by such employee at least six months
prior to the date such shares are surrendered in payment.

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5.  Transfer of Employee Options; Exercise of Employee Options Following
    Termination of Employment
    -------------------------

         (a)      Options may be exercised only by the employee and shall not be
transferable other than by will or the laws of descent and distribution. These
restrictions on transferability shall not apply to the extent (i) such
restrictions are not at the time required for the Plan to continue to meet the
requirements of Rule 16b-3 of the Exchange Act, or any successor Rule, (ii) the
Committee has established rules concerning the transferability of employee
options and (iii) the agreement relating to an Award so specifies or the holder
has received notice from the Office of the Secretary of Household that such
restrictions are no longer applicable. If the holder of an option shall cease to
be an employee of Household or a subsidiary, and unless otherwise provided by
the Committee, all rights under such option shall immediately terminate, except:

                  (i) in the event of termination of employment of a holder to
         which Section 11(b) hereof applies, or of a holder who is
         retirement-eligible under the terms of a pension plan of Household or a
         subsidiary, the option may be exercised within five years of the date
         of termination of employment or as otherwise provided in the agreement
         for the Award;

                  (ii) in the event of termination of employment due to
         permanent and total disability, and the holder is not
         retirement-eligible under the terms of a pension plan of Household or a
         subsidiary, the option may be exercised within twelve months following
         the date of such termination of employment or as otherwise provided in
         the agreement for the Award;

                  (iii) in the event of death during employment, the option may
         be exercised by the executor, administrator, or other personal
         representative of the holder within five years succeeding death if such
         holder was retirement-eligible under the terms of a pension plan of
         Household or a subsidiary, or twelve months if such holder was not
         retirement-eligible under the terms of a pension plan of Household or a
         subsidiary or as otherwise provided in the agreement for the Award;

                  (iv) except in the event an employee is terminated for cause,
         following termination of employment other than as set forth in
         subsections (i), (ii) or (iii) above, the option may be exercised
         within three months following the date of termination, or prior to the
         expiration of the option, whichever period is shorter; or

                  (v) in the event of death of a holder of an option following
         termination of employment, the option may be

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         exercised by the executor, administrator, or other personal
         representative of the holder, notwithstanding the time period specified
         in (i), (ii), (iii) or (iv) above, within a) twelve months following
         death or b) the remainder of the period in which the holder was
         entitled to exercise the option, whichever period is longer.

         If the Committee determines that the termination is for cause, the
option will not under any circumstances be exercisable following termination of
employment. Notwithstanding the foregoing, in the case where the employee is a
party to an employment, termination protection or similar agreement with
Household or a subsidiary which is in effect at the time of termination of
employment that defines "cause" (or words of similar import), the Committee
shall not determine such termination of employment to be for "cause" unless a
"cause" termination would be permitted under such agreement at that time.

         (b) An option may not be exercised pursuant to this Section after the
expiration of the term of such option and may be exercised only to the extent
that the holder was entitled to exercise such option on the date of termination
of employment.

6.  Non-Employee Director Options
    -----------------------------

         (a) Each non-employee Director of Household will be granted an option
for 10,000 shares of Household Common Stock annually on the same date grants are
made to employees. In addition, in lieu of cash compensation, non-employee
Directors may choose to receive a number of stock options equivalent to 10% of
the annual cash compensation they choose to receive in stock options. The
Committee will have no discretion to select which non-employee Directors will be
granted options or to determine the number of option shares, price, vesting
schedule or any other term of the options granted to non-employee Directors. All
options granted to non-employee Directors will be non-qualified stock options.

         (b) The per share purchase price of Common Stock which may be acquired
pursuant to a non-employee Director option shall be 100% of the fair market
value of one share of Common Stock on the date the option is granted. For
purposes of establishing the fair market value of Household's Common Stock on
any day under Section 6 of this Plan, such value shall be the average of the
highest and lowest sales prices per share of the Common Stock for such date.
However, if the Stock Exchange is not open for trading on a given day, the fair
market value will be the average of the highest and lowest sales prices per
share on the next succeeding business day.

         (c)  Subject to Section 11 of this Plan, each option granted to a non-
employee Director vests and shall be fully exercisable

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beginning six months from the date the option was granted. Each such option
expires ten years and one day from the date of the grant. However, if a
non-employee Director ceases to be a Director of Household, outstanding vested
options are exercisable as follows:

                 (i)   in the event service on the Board of Directors terminates
         due to permanent and total disability, outstanding options may be
         exercised within twelve months following the date such service
         terminates or prior to the expiration of the outstanding options,
         whichever period is shorter;

                 (ii)  in the event of death of a non-employee Director whether
         during service as a Director of Household or after ceasing such
         service, outstanding options may be exercised by the executor,
         administrator, or other personal representative of such Director within
         twelve months after the death of the Director or prior to the
         expiration of the outstanding options, whichever period is longer;

                 (iii) in the event a non-employee Director's service on the
         Board of Directors terminates because such Director has reached the
         mandatory retirement age of 70 (or age 72 if a Director was serving on
         the Board as of January 1, 1989) or if a non-employee Director retires
         from the Board prior to reaching the mandatory retirement age but after
         having served on the Board of Directors continuously for at least
         fifteen years, outstanding options may be exercised at any time prior
         to the expiration of the outstanding options; and

                 (iv)  in the event service on the Board of Directors terminates
         other than as set forth in subsections (i), (ii) or (iii) above,
         outstanding options may be exercised within three months following the
         date such service terminates or prior to the expiration of the
         outstanding options, whichever period is shorter.

         (d)     Payment for shares purchased upon exercise of a non-employee
Director option shall be made in cash, in shares of Household Common Stock
valued at the then fair market value of such shares or by a combination of cash
and shares of Common Stock. Any shares of Common Stock delivered in full or
partial payment of the exercise price of an option must have been held by such
Director at least six months prior to the date such shares are delivered in
payment.

         A non-employee Director may also satisfy, in whole or in part, income
tax obligations incurred in connection with the exercise of an option by (i)
electing to have Household withhold shares of Common Stock (otherwise
deliverable to the Director in connection with the exercise of an option) in
payment for such

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income tax obligation or (ii) by delivering shares of Household Common Stock
owned by such Director in payment for such income tax obligation. Any shares of
Common Stock delivered in full or partial payment of income tax obligations must
have been held by such Director at least six months prior to the date such
shares are delivered.

         (e) Non-employee Director options are not transferable other than by
will and the laws of descent and distribution.

7.    Restricted Stock Rights
      -----------------------

         (a) Upon such terms as it deems appropriate, the Committee from time to
time may grant Restricted Stock Rights ("RSRs") to any employee selected by the
Committee, which entitle such employee to receive a stated number of shares of
Common Stock of Household. The RSRs are subject to forfeiture if the employee
fails to remain continuously employed by Household or any subsidiary for the
period(s) stipulated by the Committee (each, a "Restricted Period").

         (b) RSRs shall be subject to the following restrictions and
limitations: (i) the RSRs may not be transferred except by will or the laws of
descent and distribution; and (ii) except as otherwise provided in Paragraphs
(d) and (e) of this Section 7, an RSR and the shares subject to an RSR shall be
forfeited and all rights of a holder of an RSR shall terminate without any
payment of consideration by Household if such employee fails to remain
continuously employed by Household or any subsidiary for the Restricted Period.
A holder of an RSR shall remain continuously employed if such holder leaves the
employ of Household or any subsidiary for immediate reemployment with Household
or any subsidiary.

         (c) Other than as may be specified pursuant to Section 3(e), the holder
of an RSR shall not be entitled to any of the rights of a holder of the Common
Stock with respect to the shares subject to such RSR prior to the issuance of
such shares pursuant to the Plan.

         (d) The Committee in its sole discretion may accelerate the payment of
Household Common Stock under an RSR prior to the termination of the Restricted
Period if the holder of an RSR has achieved certain performance levels
established by the Committee at the time an RSR is granted. The Committee in its
sole judgment may revise such performance levels as it deems appropriate to
reflect significant, unforeseen events or changes.

         (e) In the event that the employment of a holder of an RSR terminates
by reason of death or permanent and total disability or as a result of Section
11(b) hereof, such holder shall be

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entitled to receive the number of shares subject to the RSR multiplied by a
fraction (x) the numerator of which shall be the number of full months between
the date of grant of each such RSR and the date of such termination of
employment, and (y) the denominator of which shall be the number of full months
in the respective Restricted Period; provided, however, no fractional share
shall be awarded. A holder of an RSR whose employment terminates for reasons
other than those listed in this paragraph will forfeit all rights under any
outstanding RSR. This automatic forfeiture may be waived in whole or in part by
the Committee in its sole discretion.

         (f) When a holder shall be entitled to receive shares pursuant to an
RSR, Household shall issue the appropriate number of shares registered in the
name of the holder.

8.    Other Stock-Based Awards
      ------------------------

         The Committee may make awards of unrestricted shares of Household
Common Stock to eligible employees in recognition of outstanding achievements.

9.    Forfeiture
      ----------

         If it is determined that an employee or former employee, while employed
by Household or any subsidiary or otherwise associated with Household or any
subsidiary as a consultant, advisor or in another similar capacity, engaged at
any time in any activity in competition with any activity of Household or any
subsidiary or inimical, contrary or harmful to the interests of Household or any
subsidiary including, but not limited to: (i) conduct related to the
participant's position for which either criminal or civil penalties against the
participant may be sought, (ii) violation of Household policies, notwithstanding
Household's decision or inability to, or not to, terminate the participant for
such violation, (iii) accepting employment with or serving as a consultant,
advisor or in any other capacity to an employer that is in competition with or
acting against the interests of Household or any subsidiary, including employing
or recruiting any present employee of Household or any subsidiary for such
competitor, (iv) disclosing or misusing any confidential information or material
concerning Household or any subsidiary, or (v) participating in a hostile
takeover attempt of Household, then the Committee, in its sole discretion, may
cancel any unexpired or unpaid Award at any time.

10.   Amendment and Termination of the Plan
      -------------------------------------

         This Plan will expire on May 8, 2006.  However, the Board of

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Directors may terminate the Plan at any time except as provided in Section
11(d), but such termination shall not affect Awards previously granted under the
Plan. During the Plan term, the Committee may amend the Plan or any Award
granted to an employee under the Plan at any time, except (i) the Plan may not
be amended or terminated in the circumstances set forth in Section 11(d), (ii)
the Committee may not, without shareholder approval, and except as permitted by
Section 3(c), increase the number of shares of Common Stock of Household which
may be issued pursuant to the Plan, change the purchase price of an Option, and
(iii) the Committee may not make any other amendment to the Plan which is
required by law to be approved by the shareholders of Household.

         Notwithstanding the preceding paragraph, the provisions of Section 6 of
the Plan relating to non-employee Directors may not be amended more than once
every six months, except to comply with changes to the Code or the rules and
regulations thereunder.

11.      Change in Control
         -----------------

         (a) In order to protect participants in the Plan who have outstanding
Awards in the event there is a "Change in Control" (as defined below), (i) all
outstanding Awards will immediately vest or the Restricted Period with respect
thereto shall lapse and such Awards shall become exercisable or payable in full
notwithstanding any minimum holding period set forth in the Plan or established
by the Committee at the time of the grant of the Award, (ii) Household shall
require that this Plan, and the Awards issued hereunder, be assumed by the
entity causing the Change in Control or the public company parent thereof (the
`Acquiror') and, if appropriate, new rights of equal value with substantially
similar terms be substituted for such Awards by the Acquiror, and (iii) the
Committee, in its sole discretion (notwithstanding any contrary provision in
Section 3(f)), may:

                  (i)   provide for the purchase by Household or the Acquiror of
         any Awards in cash equal to the amount that could have been received
         upon the exercise or realization of such Awards had the Awards been
         currently exercisable or payable on the day before said cash payment is
         made;

                  (ii)  make such adjustments, including the granting of
         additional Awards, to any outstanding Award as the Committee deems
         appropriate to reflect the Change in Control; and

                  (iii) take such other action deemed appropriate by the
         Committee to ensure that the rights of participants and the Awards are
         not adversely affected by the Change in Control.

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      (b) Any employee whose position with Household or any of its subsidiaries
is "Materially Changed" (as defined below) within twenty-four (24) months after
a Change in Control shall be deemed to be involuntarily terminated without
"cause" (as defined below) from Household and be entitled to exercise or receive
the payment of Awards previously granted to the employee that were outstanding
immediately prior to the event causing such termination or were awarded
subsequent to the event causing such termination, in each case, in accordance
with subsection 5(a)(i) with respect to Options or 7(e) of the Plan with respect
to any RSRs with respect to which the Restricted Period has not lapsed, without
any action by the Committee or Board of Directors.

      (c) For purposes of this Section and to determine the rights of any
participant who has an outstanding Award, the term:

          (i)  "Change in Control" means:

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

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                                    Household representing twenty percent (20%)
                                    or more of the combined voting power of
                                    Household's then outstanding securities has
                                    inadvertently reached that level of
                                    ownership interest, and if such person
                                    divests as promptly as practicable a
                                    sufficient amount of securities of Household
                                    so that the person no longer has a direct or
                                    indirect beneficial ownership interest in
                                    twenty percent (20%) or more of the combined
                                    voting power of Household's then outstanding
                                    securities, then no Change in Control shall
                                    be deemed to have occurred;

                           (2)      during any period of two (2) consecutive
                                    years (not including any period prior to
                                    November 9, 1998) individuals who at the
                                    beginning of such two-year period constitute
                                    the Board of Directors of Household and any
                                    new director or directors (except for any
                                    director designated by a person who has
                                    entered into an agreement with Household to
                                    effect a transaction described in
                                    subparagraph (1), above, or subparagraph
                                    (3), below) whose election by the Board or
                                    nomination for election by Household's
                                    stockholders was approved by a vote of at
                                    least two-thirds of the directors then still
                                    in office who either were directors at the
                                    beginning of the period or whose election or
                                    nomination for election was previously so
                                    approved, cease for any reason to constitute
                                    at least a majority of the Board (such
                                    individuals and any such new directors being
                                    referred to as the "Incumbent Board");

                           (3)      consummation of (x) an agreement for the
                                    sale or disposition of Household or all or
                                    substantially all of Household's assets, (y)
                                    a plan of merger or consolidation of
                                    Household with any other corporation, or (z)
                                    a similar transaction or series of
                                    transactions involving Household (any
                                    transaction described in parts (x) through
                                    (z) of this subparagraph (3) being referred
                                    to as a "Business Combination"), in each
                                    case unless after such a Business
                                    Combination (I) the stockholders of
                                    Household immediately prior to the Business
                                    Combination continue to own, directly or
                                    indirectly, more than sixty percent (60%) of
                                    the combined voting power of the then

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                                    outstanding voting securities entitled to
                                    vote generally in the election of directors
                                    of the new (or continued) entity (including,
                                    but not by way of limitation, an entity
                                    which as a result of such transaction owns
                                    Household, or all or substantially all of
                                    Household's former assets either directly or
                                    through one or more subsidiaries)
                                    immediately after such Business Combination,
                                    in substantially the same proportion as
                                    their ownership of Household immediately
                                    prior to such Business Combination, (II) no
                                    person (excluding any entity resulting from
                                    such Business Combination or any employee
                                    benefit plan (or related trust) of Household
                                    or of such entity resulting from such
                                    Business Combination) beneficially owns,
                                    directly or indirectly, twenty percent (20%)
                                    or more of the then combined voting power of
                                    the then outstanding voting securities of
                                    such entity, except to the extent that such
                                    ownership existed prior to the Business
                                    Combination, and (III) at least a majority
                                    of the members of the board of directors of
                                    the entity resulting from such Business
                                    Combination were members of the Incumbent
                                    Board at the time of the execution of the
                                    initial agreement, or of the action of the
                                    Board, providing for such Business
                                    Combination;

                           (4)      approval by the stockholders of Household of
                                    a complete liquidation or dissolution of
                                    Household;

                           (5)      a tender offer is made for thirty percent
                                    (30%) or more of the common stock of
                                    Household, which tender offer has not been
                                    approved by the Board of Directors of
                                    Household; or

                           (6)      a solicitation subject to Rule 14a-11 under
                                    the Exchange Act (or any successor Rule)
                                    relating to the election or removal of 50%
                                    or more of the members of the Incumbent
                                    Board is made by any person other than
                                    Household.

                      (ii)  "Materially Changed" means the occurrence of one or
               more of the following events:

                           (1)      the termination of the employee, without

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<PAGE>

                                    cause, and other than by reason of death,
                                    permanent and total disability or retirement
                                    under the terms of a pension plan of
                                    Household or any subsidiary, or termination
                                    by the employee within the special 60-day
                                    window period which begins 6 months after a
                                    Change in Control as provided in the
                                    employee's employment agreement;

                           (2)      the employee was assigned to a position of
                                    lesser rank or status;

                           (3)      the employee's annual target bonus or
                                    targeted performance unit awards were
                                    reduced and compensation equivalent in
                                    aggregate value was not substituted;

                           (4)      the employee's annual salary was reduced;

                           (5)      the employee's benefits under the Household
                                    Retirement Income Plan or any successor tax
                                    qualified defined benefit plan were reduced
                                    for reasons other than to maintain its tax
                                    qualified status and such reductions were
                                    not supplemented in the Household
                                    Supplemental Retirement Income Plan
                                    ("HSRIP"); or the employee's benefits under
                                    HSRIP, if applicable, were reduced;

                           (6)      the employee's other benefits or perquisites
                                    were reduced and such reductions were not
                                    uniformly applied with respect to all
                                    similarly situated employees; or

                           (7)      the employee was reassigned to a
                                    geographical area outside of the
                                    metropolitan area in which the employee was
                                    assigned at the time of the Change in
                                    Control.

                      (iii) "cause" (1) in the case of an employee who is a
                 party to an employment, termination protection or similar
                 agreement that defines "cause" (or words of similar import),
                 means "cause" (or words of similar import) as defined in such
                 agreement, and (2) in the case of any other employee, means
                 willful and deliberate misconduct, which is detrimental in a
                 significant way to the interests of Household or any subsidiary
                 thereof.

                                      -14-

<PAGE>

         (d) Notwithstanding anything set forth in Section 11 hereof, with the
occurrence of a Change in Control the Plan may not be amended or terminated by
the Committee, the Board of Directors or the stockholders of Household.

12.  Miscellaneous
     -------------

         (a) The Plan is intended to constitute an "unfunded" plan for incentive
compensation. With respect to any payments or deliveries of shares of Household
Common Stock not yet made or required to be made to a participant by Household,
nothing contained herein shall give any rights to a participant that are greater
than those of a general creditor of Household. The Committee may permit the
deferral of receipt of any shares of Household Common Stock to be issued under a
vested Award or exercised Award or authorize the creation of trusts or other
plans and arrangements to meet the obligations created under the Plan to deliver
shares of Household Common Stock or payments hereunder consistent with the
foregoing.

         (b) With respect to participants subject to Section 16 of the Exchange
Act, transactions under this Plan are intended to comply with all applicable
provisions of Rule 16b-3 or its successor under the Exchange Act. To the extent
any provision of the Plan or action by the Committee or its designee fails to so
comply, it shall be deemed null and void.

         (c) This Plan and each agreement with respect to an Award shall be
construed and administered in accordance with the laws of the State of Delaware
without giving effect to principles relating to conflict of laws.

         (d) Neither the adoption of the Plan nor any Award granted hereunder
shall confer upon any participant any right to continued employment or service
with Household or any subsidiary thereof, nor shall the Plan or any Award
interfere in any way with the right of Household or a subsidiary to terminate
the employment or relationship of any of the participants at any time.

                                      -15-

<PAGE>

                                AMENDMENT TO THE
                         HOUSEHOLD INTERNATIONAL, INC.
              1996 LONG-TERM EXECUTIVE INCENTIVE COMPENSATION PLAN
                               NOVEMBER 11, 1997

On November 11, 1997 the Household International Board of Directors, upon the
recommendation of the Board's Compensation Committee, adopted an amendment to
the 1996 Long-Term Executive Incentive Compensation Plan (the "Plan") relating
to the transferability of options granted under the Plan.

Transferability of Options Granted to Nonemployee Directors and Senior Managers
                                                                ------ --------

This amendment only applies to Nonemployee Directors and Senior Managers
(defined under this amendment as the Chief Executive Officer and employees with
a direct reporting relationship to the Chief Executive Officer) who have
received or in the future receive options to purchase Household Common Stock
under the Plan. This section modifies Plan Section 5(a) as regards the
transferability of options granted to Nonemployee Directors and Senior Managers;
all other provisions continue to apply.

Who is Eligible

This provision only applies to Nonemployee Directors and Senior Managers
("Eligible Persons").

Transfer of Options; Minimum Number

Options granted under the Plan may be transferred by will or through the laws of
descent and distribution. In addition, Eligible Persons may transfer their
options only to family members, family trusts, and family partnerships
(collectively, "Transferees"). Transferees may not retransfer any options except
by will or through the laws of descent and distribution. Any option transferred
to a single Transferee must represent the right to purchase a minimum of 100
shares.

Which Options May be Transferred

Eligible Persons may transfer any option, including vested and unvested portions
of any award granted under the Plan. Options granted under previous benefit
plans are not covered by this amendment.

Exercise

Options will vest in accordance with applicable Plan provisions. A Transferee
may only exercise vested options, and only as provided in the Plan.

                                      -16-

<PAGE>

Taxation of Options

The Eligible Person remains liable for any income tax related to the exercise of
transferred options. Income tax will be calculated as of the exercise date. The
Eligible Person is solely responsible for tax liability related to any options
gifted to a Transferee.

Law and Regulation

In addition to laws and regulations that apply to the Plan, the Transfer of
options must be completed in accordance with securities registration and
disclosure regulations applicable at the time of transfer. Eligible Persons and
Transferees may be subject to certain waiting periods limiting transfer or
exercise. Eligible Persons, or their agents agree to notify the Corporation at
least five days before any option they own or control is exercised.

                                      -17-<PAGE>

                                                                   EXHIBIT 10.10

                            HOUSEHOLD INTERNATIONAL

                    NON-QUALIFIED DEFERRED COMPENSATION PLAN
                           FOR STOCK OPTION EXERCISES

         Section 1. Purpose. The purpose of this Plan is to provide certain
         ---------  -------
executives of Household International, Inc. (the "Company") and certain of its
direct and indirect subsidiaries (the Company and such subsidiaries being
referred to as the "Employers") the opportunity to defer receipt of compensation
and provide for future savings of compensation earned in connection with the
exercise of a Household stock option. The provision of such an opportunity is
designed to aid the Company in attracting and retaining as executives persons
whose abilities, experience and judgment can contribute to the well-being of the
Company.

         Section 2. Name, Effective Date. The effective date of this plan known
         ---------  --------------------
as the Household International Non-Qualified Deferred Compensation Plan for
Stock Option Exercises (the "Plan") is November 15, 1999.

         Section 3. Eligibility. Any executive of the Employers in Career Band D
         ---------  -----------
or Career Band S who has outstanding stock options for Household International,
Inc. Common Stock, $1.00 par value ("Household stock") is eligible to
participate in this Plan.

         Section 4. Deferred Compensation Account. An unfunded deferred
         ---------  -----------------------------
compensation  account shall be established for each person who elects to
participate in the Plan.

         Section 5. Amount of Deferral. In the calendar year prior to the
         ---------  ------------------
exercise of a Household stock option on a date at least six months prior to the
date the participant intends to exercise the Household stock option, the
participant can make an irrevocable election to defer receipt of the stock that
would otherwise be paid to the participant upon the exercise of the option. The
Household stock deferred will be credited to the participant's deferred
compensation account on the date such stock would otherwise be initially issued
pursuant to the option exercise.

         Section 6. Election of Deferral. An election to defer receipt of stock
         ---------  --------------------
due to the exercise of a Household stock option shall be made on forms provided
by the Compensation Committee of the Board of Directors of the Company (the
"Committee") for that purpose and shall be effective on the date indicated, but
not before the date filed with the Committee. In order to have

<PAGE>

a valid deferral election, the participant who exercises the option must pay for
the Household stock option with Household stock which he has held for at least
six months. A payment in cash is not permitted. However, any tax withholding
must be paid in cash, and not by reducing the Household stock received from the
exercise.

         If a participant has failed to select a deferred distribution date for
a deferral or if he terminates employment before such deferred distribution
date, then distribution of such deferred compensation account will be made as
soon as practicable in the calendar year following the date of the participant's
termination of employment. For any deferral attributable to a Household stock
option exercise, the earliest deferred distribution date specified by the
participant must be at least two years after the year in which the stock option
exercise occurred. The election shall be irrevocable upon receipt by the
Committee.

         Section 7. Hypothetical Investment. Each deferred compensation account
         ---------  -----------------------
will be credited with shares of Household stock on the date on which the
Household stock option is exercised. No dividends shall be paid on such stock.
There is no guarantee a participant's deferred compensation account will
increase in value; the account may decrease in value based on the performance of
Household stock.

         Section 8. Payment of Deferral. If a participant elected to defer any
         ---------  -------------------
year's compensation under this Plan to a specific date other than his or her
termination of employment, the value of such year's deferred compensation will
be payable in stock with only fractional shares paid in cash on the date
specified unless it is paid earlier due to termination of employment. The value
of a participant's deferred compensation account will be payable in stock with
only fractional shares paid in cash as soon as practicable following the end of
the year in which a participant terminates employment unless an earlier date is
specified by the participant in his election to defer compensation. All deferred
amounts to be paid to a participant pursuant to the Plan are to be paid in
shares of Household stock with the value of such shares being the fair market
value of an equal number of shares of Household stock on the date of payment.
For purposes of the Plan, the "fair market value" shall be the average of the
high and low sale prices for a share of Household stock as published in The Wall
                                                                        --------
Street Journal for the respective payment date.
--------------

                                       2

<PAGE>

         In the event that the participant becomes totally disabled, the
Committee, in its absolute discretion, may distribute all or a portion of the
participant's deferred compensation account according to a revised payment
schedule but it must still be paid in stock.

         Section 9. Withholding. Subject to the following sentence, there shall
         ---------  -----------
be deducted from all deferrals and payments under this Plan the amount of any
taxes required to be withheld by any federal, state or local government unless
these amounts are paid in cash by the participant. However, for any taxes
required to be withheld by any federal, state or local government in connection
with a deferral, these amounts must be paid in cash and not by reducing the
shares otherwise credited to the participant's account. The participants and
their beneficiaries, distributees, and personal representatives will bear any
and all federal, foreign, state, local or other income or other taxes imposed on
amounts deferred or paid under this Plan.

         Section 10. Designation of Beneficiary. A participant may designate a
         ----------  --------------------------
beneficiary or beneficiaries which shall be effective upon filing written notice
with the Committee on the form provided by the Committee for that purpose. If no
beneficiary is designated, the beneficiary will be the participant's estate. If
more than one beneficiary statement has been filed, the beneficiary or
beneficiaries designated in the statement bearing the most recent date will be
deemed the valid beneficiary or beneficiaries.

         Section 11. Death of Participant or Beneficiary. In the event of a
         ----------  -----------------------------------
participant's death before he has received the full value of his deferred
compensation account, the then current value of the participant's deferred
compensation account shall be determined and such amount shall be paid to the
beneficiary or beneficiaries of the deceased participant as soon as practicable
thereafter in stock with only fractional shares paid in cash. If no designated
beneficiary has been named or survives the participant, the beneficiary will be
the participant's estate.

         Section 12. Participant's Rights Unsecured. The right of any
         ----------  ------------------------------
participant or beneficiary to receive payment under the provisions of the Plan
shall be an unsecured claim against the general assets of the Company, and any
successor company in the event of a merger, consolidation, reorganization or any
other event which causes the Company's assets or business to be acquired by
another company. No provisions contained in the Plan shall be construed to give
any

                                       3

<PAGE>

participant or beneficiary at any time a security interest in the deferred
compensation account or any other assets of the Company.

         Section 13.  Statement of Account.  Statements  will be sent to
         ----------   --------------------
participants  following  the end of each year as to the value of their deferred
compensation accounts as of December 31st of such year.

         Section 14.  Assignability.  No right to receive  payments  hereunder
         ----------   -------------
shall be transferable or assignable by a participant or a beneficiary.

         Section 15. Administration of the Plan. The Plan shall be administered
         ----------  --------------------------
by the Committee. The Committee shall conclusively interpret the provisions of
the Plan, decide all claims, and shall make all determinations under the Plan.
The Committee shall act by vote or written consent of a majority of its members.
The Committee may authorize the appointment of an agent to perform recordkeeping
and other administrative duties with respect to the Plan.

         Section 16. Amendment or Termination of Plan. This Plan may at any time
         ----------  --------------------------------
or from time to time be amended, modified or terminated by the Committee. No
amendment, modification or termination shall, without the consent of a
participant, adversely affect such participant's accruals on his prior
elections. Rights accrued prior to termination of the Plan will not be canceled
by termination of the Plan.

         Section 17.  Governing  Law. This  Agreement  shall be governed by and
         ----------   --------------
construed in accordance  with the laws of the State of Illinois.

         Section 18. Payment of Certain Costs of the Participant. If a dispute
         ----------  -------------------------------------------
arises regarding the interpretation or enforcement of this Plan and the
participant (or, in the event of his death, his beneficiary) obtains a final
judgment in his favor from a court of competent jurisdiction from which no
appeal may be taken, whether because the time to do so has expired or otherwise,
or his claim is settled by the Company prior to the rendering of such a
judgment, all reasonable legal and other professional fees and expenses incurred
by the participant in contesting or disputing any such claim or in seeking to
obtain or enforce any right or benefit provided for in this Plan or in otherwise
pursuing his claim will be promptly paid by the Company with interest thereon at
the highest Illinois statutory rate for interest on judgments against private
parties from the date of payment thereof by the participant to the date of
reimbursement to him by the Company.

                                       4

<PAGE>

         Section 19. Securities Law. With respect to participants subject to
         ----------  --------------
Section 16 of the Exchange Act, transactions under this Plan are intended to
comply with all applicable provisions of Rule 16b-3 or its successor under the
Securities Exchange Act of 1934. To the extent any provision of the Plan or
action by the Committee or its designee fails to so comply, it shall be deemed
null and void.

         Section 20. Change in Control.  A "Change in Control" shall be deemed
         ----------  -----------------
to have occurred if:

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

                                       5

<PAGE>

                indirect beneficial ownership interest in twenty percent (20%)
                or more of the combined voting power of the Company's then
                outstanding securities, then no Change in Control shall be
                deemed to have occurred;

         (2)    During any period of two (2) consecutive years (not including
                any period prior to December 1, 1998) individuals who at the
                beginning of such two-year period constitute the Board of
                Directors of the Company and any new director or directors
                (except for any director designated by a person who has entered
                into an agreement with the Company to effect a transaction
                described in subparagraph (1), above, or subparagraph (3),
                below) whose election by the Board or nomination for election by
                the Company's stockholders was approved by a vote of at least
                two-thirds of the directors then still in office who either were
                directors at the beginning of the period or whose election or
                nomination for election was previously so approved, cease for
                any reason to constitute at least a majority of the Board (such
                individuals and any such new directors being referred to as the
                "Incumbent Board");

         (3)    Consummation of (x) an agreement for the sale or disposition of
                the Company or all or substantially all of the Company's assets,
                (y) a plan of merger or consolidation of the Company with any
                other corporation, or (z) a similar transaction or series of
                transactions involving the Company (any transaction described in
                parts (x) through (z) of this subparagraph (3) being referred to
                as a "Business Combination"), in each case unless after such a
                Business Combination (I) the stockholders of the Company
                immediately prior to the Business Combination continue to own,
                directly or indirectly, more than sixty percent (60%) of the
                combined voting power of the then outstanding voting securities
                entitled to vote generally in the election of directors of the
                new (or continued) entity (including, but not by way of
                limitation, an entity which as a result of such transaction owns
                the Company, or all or substantially all of the Company's former
                assets either directly or through one or more subsidiaries)
                immediately after such Business Combination, in substantially
                the same proportion as their ownership of the Company
                immediately prior to such Business Combination, (II) no person
                (excluding any entity resulting from such Business

                                       6

<PAGE>

               Combination or any employee benefit plan (or related trust)
               of the Company or of such entity resulting from such Business
               Combination) beneficially owns, directly or indirectly, twenty
               percent (20%) or more of the then combined voting power of the
               then outstanding voting securities of such entity, except to the
               extent that such ownership existed prior to the Business
               Combination, and (III) at least a majority of the members of the
               board of directors of the entity resulting from such Business
               Combination were members of the Incumbent Board at the time of
               the execution of the initial agreement, or of the action of the
               Board, providing for such Business Combination; or

         (4)   Approval by the stockholders of the Company of a complete
               liquidation or dissolution of the Company.

         Notwithstanding any other provision of the Plan, if a Change of Control
     occurs, then the Company shall create a trust or take such other actions as
     are appropriate to protect each participant's deferred compensation
     account.

                                       7

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