Document:

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                                                                     EXHIBIT 4.3

                                                                  EXECUTION COPY

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               HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I,
                                     Issuer

                                       and

                              THE BANK OF NEW YORK,

           Indenture Trustee, Paying Agent and Securities Intermediary

                       SERIES 2003-2 INDENTURE SUPPLEMENT

                           Dated as of March 13, 2003

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                                TABLE OF CONTENTS

<TABLE>
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                                                                                        PAGE
<S>                                                                                        <C>
ARTICLE I     CREATION OF THE SERIES 2003-2 NOTES..........................................1

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

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

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

ARTICLE III   SERVICING FEE...............................................................15

   Section 3.01  Servicing Compensation...................................................15

ARTICLE IV    RIGHTS OF SERIES 2003-2 NOTEHOLDERS  AND ALLOCATION AND
                  APPLICATION OF COLLECTIONS..............................................16

   Section 4.01  Collections and Allocations..............................................16

   Section 4.02  Determination of Monthly Interest........................................18

   Section 4.03  Determination of Monthly Principal.......................................19

   Section 4.04  Application of Available Funds on Deposit in the Collection Account......20

   Section 4.05  Investor Charge-offs.....................................................23

   Section 4.06  Subordinated Principal Collections.......................................23

   Section 4.07  Excess Finance Charge and Administrative Collections.....................23

   Section 4.08  Shared Principal Collections.............................................23

   Section 4.09  [Reserved]...............................................................24

   Section 4.10  Principal Funding Account................................................24

   Section 4.11  Reserve Account..........................................................25

   Section 4.12  Determination of LIBOR...................................................27

   Section 4.13  Investment Instructions..................................................28

   Section 4.14  Exchange of Notes for Transferor Amount..................................28

ARTICLE V     DELIVERY OF SERIES 2003-2 NOTES; DISTRIBUTIONS; REPORTS TO
                  SERIES 2003-2 NOTEHOLDERS...............................................29

   Section 5.01  Delivery and Payment for the Series 2003-2 Notes.........................29

   Section 5.02  Distributions............................................................29

   Section 5.03  Reports and Statements to Series 2003-2 Noteholders......................30

ARTICLE VI    SERIES 2003-2 AMORTIZATION EVENTS...........................................31

   Section 6.01  Series 2003-2 Amortization Events........................................31

ARTICLE VII   REDEMPTION OF SERIES 2003-2 NOTES; SERIES FINAL MATURITY;
                  FINAL DISTRIBUTIONS.....................................................32
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<TABLE>
<S>                                                                                       <C>
   Section 7.01  Optional Redemption of Series 2003-2 Notes...............................32

   Section 7.02  Series Final Maturity....................................................33

ARTICLE VIII  MISCELLANEOUS PROVISIONS....................................................34

   Section 8.01  Ratification of Indenture................................................34

   Section 8.02  Counterparts.............................................................34

   Section 8.03  Governing Law............................................................34

   Section 8.04  Transfer of the O/C Amount...............................................34

   Section 8.05  Limitation of Liability..................................................34

   Section 8.06  Certain Commercial Law Representations and Warranties....................35
</TABLE>

EXHIBITS

EXHIBIT A-1         FORM OF CLASS A NOTE

EXHIBIT A-2         FORM OF CLASS B NOTE

EXHIBIT A-3         FORM OF CLASS C 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

                                       ii

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                SERIES 2003-2 INDENTURE SUPPLEMENT, dated as of March 13, 2003
(the "Indenture Supplement"), between HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE
TRUST I, a statutory trust existing under the laws of the State of Delaware
(herein, the "Issuer" or the "Trust"), and THE BANK OF NEW YORK, 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 Amended and Restated Master Indenture, dated as of March 13, 2003 (the
"Indenture") between the Issuer and the Indenture Trustee (the Indenture,
together with this Indenture Supplement, the "Agreement").

                The Transferor may direct 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 has directed 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 2003-2, the
issuance, authentication and delivery of the Class B Notes, Series 2003-2 and
the issuance, authentication and delivery of the Class C Notes, Series 2003-2
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 2003-2 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 Affinity Credit Card Master Note Trust I, Series 2003-2" or the
"Series 2003-2 Notes." The Series 2003-2 Notes shall be issued in three Classes,
the first of which shall be known as the "Class A Series 2003-2 2.18% Asset
Backed Notes", the second of which shall be known as the "Class B Series 2003-2
2.51% Asset Backed Notes" and the third of which will shall be known as the
"Class C Series 2003-2 Floating Rate Asset Backed Notes". The Series 2003-2
Notes shall be due and payable on the Series 2003-2 Final Maturity Date.

                (b)     Series 2003-2 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 2003-2 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 2003-2 shall be the April 2003 Distribution Date, and the first Due
Period shall begin on and include March 1, 2003 and end on and include March 31,
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

<PAGE>

Agreement. Each capitalized term defined herein shall relate only to the Series
2003-2 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 2003-2) 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, the Class B Additional
Interest and the Class C 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 2003-2 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 2003-2 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.

                "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 (other
than Investor Finance Charge and Administrative Receivables allocated to
Servicer Interchange with respect to such Due Period), (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), (d) and (f).

                "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 2003-2 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,
the Class B Note Interest Rate and the Class C Note Interest Rate for the
Interest Period commencing in such Due Period

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(weighted based on the Class A Note Principal Balance, the Class B Note
Principal Balance and the Class C Note Principal Balance as of the last day of
the prior Due Period or, for the first Due Period, in each case of the Closing
Date) 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 sum
of the Monthly Servicing Fee and Servicer Interchange for such Due Period 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 (or, in the case of the first
Due Period, as of the Closing Date).

                "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
$699,000,000.

                "Class A Note Interest Rate" shall mean a per annum rate of
2.18%.

                "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 $39,000,000.

                "Class B Note Interest Rate" shall mean a per annum rate of
2.51%.

                "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.

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                "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.

                "Class C Additional Interest" shall have the meaning specified
in subsection 4.02(c).

                "Class C Interest Shortfall" shall have the meaning specified in
subsection 4.02(c).

                "Class C Monthly Interest" shall have the meaning specified in
subsection 4.02(c).

                "Class C Note Initial Principal Balance" shall mean $12,000,000.

                "Class C Note Interest Rate" shall mean a per annum rate of
1.35% in excess of LIBOR as determined (i) on March 11, 2003, for the period
from and including the Closing Date through and excluding April 15, 2003 and
(ii) on the related LIBOR Determination Date with respect to each Interest
Period thereafter.

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

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

                "Class C 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-3.

                "Closing Date" shall mean March 13, 2003.

                "Controlled Accumulation Amount" shall mean for any Distribution
Date with respect to the Controlled Accumulation Period, $62,500,000; provided,
however, that if the Accumulation Period Length is determined to be less than 12
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, the Class B Note Initial Principal Balance and the Class C
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 January 31, 2005 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.

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                "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) one-twelfth of the product of (i)
the Class A Note Interest Rate, times (ii) 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, (b) one-twelfth of the product of
(i) the Class B Note Interest Rate, times (ii) 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 and (c) 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 C 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 sum of the Class A Note Principal Balance and the Class B Note Principal
Balance and (B) the Class C 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 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 April 15, 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 2003-2 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 2003-2 Noteholders
and (b) the Series 2003-2 Final Maturity Date.

                "Eligible Investments" shall mean, with respect to funds
allocable to Series 2003-2 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 "F1+,"
"P-1" and "A-1+" (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.

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                "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
2003-2 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 2003-2 with respect to
such Due Period, minus (iii) the amounts distributable pursuant to subsection
4.04(a)(i) through (vii) 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 (or, with
respect to the first Due Period, as of the Closing Date).

                "Expected Principal Payment Date" shall mean the February 2006
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 $27,202,073.

                "Initial Invested Amount" shall mean $777,202,073.

                "Initial Principal Amount" shall mean $750,000,000.

                "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 Interest Period, from the
Closing Date) to but excluding such Distribution Date.

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                "Interim Note Principal Amount" shall mean as of any
Distribution Date (with respect to clauses (a), (b), (c) and (d), before giving
effect to distributions on such Distribution Date) (a) the Class A Note
Principal Balance plus (b) the Class B Note Principal Balance plus (c) the Class
C Note Principal Balance minus (d) the Principal Funding Account, if any, minus
(e) the Controlled Deposit Amount deposited 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 of the Series 2003-2 Notes and
the Initial O/C Amount minus (a) the amount of principal previously paid to the
Series 2003-2 Noteholders with respect to the Class A Notes, the Class B Notes
and the Class C 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.

                "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 at any time, (ii)
Principal Receivables during the Revolving Period, and (iii) Defaulted Amounts
at any time, the Floating Investor Percentage and (b) with respect to Principal
Receivables during any period other than the Revolving 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 (a) March 11, 2003 for the
period from and including the Closing Date through but excluding April 15, 2003
and (b) the second London Business Day prior to the commencement of the second
and each subsequent Interest Period.

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

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                "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 Net 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,
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:

                (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 $297,719.

                "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) 10.00% 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);

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                (b)     the lower of (i) the excess of the amounts distributable
pursuant to subsections 4.04(a)(ii), 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 (ii)(1) the product of (I) 5.00% 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); and

                (c)     the lower of (i) the excess of the amounts distributable
pursuant to subsections 4.04(a)(iii) and 4.04(a)(iv), 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)(iii) and (iv), and (ii)(1) the product of (I) 3.50% 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 clauses (a) and
(b) above with respect to the related Distribution Date).

                "Net Servicing Fee Rate" shall mean (i) so long as HFC or an
Affiliate or The Bank of New York is the Servicer, 0.75% per annum and (ii) if
HFC or an Affiliate or The Bank of New York is no longer the Servicer, 2.00% per
annum.

                "Note Principal Balance" shall mean, at any time of
determination, the sum of the Class A Note Principal Balance, the Class B Note
Principal Balance and the Class C 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 initially Household Affinity Funding
Corporation III, a Delaware corporation, as initial holder of the Transferor
Certificate.

                "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 2003-2 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.

                                       10

<PAGE>

                "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 2003-2 and each
other Series specified in the related Indenture Supplement to be included in
Principal Sharing Group One.

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

                "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 2003-2 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 2003-2 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.

                "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 3.63% of the Interim Note Principal Amount for such Distribution Date but not
less than 3.00% 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 sum
of the Class A Note Principal Balance, the Class B Note Principal Balance and
the Class C 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.

                                       11

<PAGE>

                "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) 0.50% 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 7% 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 4% 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 3% or greater, but less than 4%, (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 2% or greater, but less than 3% 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 2%. For
purposes of this definition, Excess Spread shall be determined for each month
beginning 15 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.

                                       12

<PAGE>

                "Series 2003-2" shall mean the Series of Notes for which the
terms are specified in this Indenture Supplement.

                "Series 2003-2 Accounts" shall mean the Reserve Account and the
Principal Funding Account.

                "Series 2003-2 Amortization Event" shall have the meaning
specified in Section 6.01.

                "Series 2003-2 Cut-off Date" shall mean the close of business on
February 28, 2003.

                "Series 2003-2 Final Maturity Date" shall mean the earliest to
occur of (a) the February 2008 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 2003-2 Note" shall mean a Class A Note, a Class B Note
or a Class C Note.

                "Series 2003-2 Noteholder" shall mean a Class A Noteholder, a
Class B Noteholder or a Class C Noteholder.

                "Series 2003-2 Principal Shortfall" shall have the meaning
specified in Section 4.08.

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

                (a)     during the Revolving Period, the Invested Amount as of
the last day of the immediately preceding Due Period (or, with respect to the
first Due Period, as of the Closing Date);

                (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

                                       13

<PAGE>

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, (ii) Servicer Interchange and (iii) any Excess
Finance Charge and Administrative Collections that are allocated to Series
2003-2 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 (or, with respect to
the first Due Period, as of the Closing Date).

                "Servicer Interchange" shall mean, for any Due Period, the
Investor Finance Charge and Administrative Receivables that is attributable to
Interchange; provided, however, that Servicer Interchange for a Due Period shall
not exceed one-twelfth of the product of (a) the Floating Investor Percentage
for such Due Period, (b) the Servicer Interchange Fee Rate and (c) the total
amount of Principal Receivables as of the close of business on the last day of
the immediately preceding Due Period, excluding the principal portion of
Participation Interests; provided further, 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:

                (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;

                                       14

<PAGE>

provided further, however, that with respect to the first Distribution Date,
Servicer Interchange shall not exceed $496,198.

                "Servicer Interchange Fee Rate" shall mean (i) so long as HFC or
an Affiliate or The Bank of New York is the Servicer, 1.25% per annum and (ii)
if HFC or an Affiliate or The Bank of New York is no longer the Servicer, 0% per
annum.

                "Servicing Fee Rate" shall mean the sum of the Servicer
Interchange Fee Rate and the Net Servicing Fee Rate.

                "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 Moneyline Telerate Services Report (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
2003-2 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 2003-2 Noteholders with respect to any Distribution Date shall
equal the sum of the Monthly Servicing Fee and Servicer Interchange for the
related Due Period. On each Distribution Date, but only if HFC or an Affiliate
or The Bank of New York is the Servicer, Servicer Interchange with respect to
the related Due Period that is on deposit in the Collection Account shall be

                                       15

<PAGE>

withdrawn from the Collection Account and paid to the Servicer in payment of a
portion of the Servicing Fee with respect to such Due Period. In the case of any
insufficiency of Servicer Interchange on deposit in the Collection Account, a
portion of the Servicing Fee with respect to such Due Period will not be paid to
the extent of such insufficiency of Servicer Interchange. The portion of the
Servicing Fee that is not allocable to the Series 2003-2 Noteholders or paid
from Servicer Interchange shall be paid by the holder of the Transferor
Certificate 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 2003-2 Noteholders be liable for the share of
the Servicing Fee to be paid by the holder of the Transferor Certificate or the
noteholders of any other Series.

                (b)     Interchange. Not later than 1:00 p.m., New York City
time, on each Transfer Date, the Servicer shall notify the Transferor, the Owner
Trustee and the Indenture Trustee of the amount of Interchange to be included as
Collections of Finance Charge and Administrative Receivables. On each
Distribution Date, the Transferor shall cause to be deposited into the
Collection Account, in immediately available funds, the amount of Interchange to
be so included as Collections of Finance Charge and Administrative Receivables
allocable to Series 2003-2 with respect to the preceding Due Period and such
Interchange shall be treated as a portion of Collections of Finance Charge and
Administrative Receivables allocable to Series 2003-2 for all purposes of this
Indenture Supplement, the Indenture and the Transfer and Servicing Agreement.
Notwithstanding the above, if the Transferor shall have delivered to the
Indenture Trustee an Officer's Certificate stating that the Transferor
reasonably believes that such action will not have an Adverse Effect, the
Transferor may, in lieu of causing the deposit of Interchange into the
Collection Account as set forth above, designate Discount Option Receivables
pursuant to Section 2.12 of the Transfer and Servicing Agreement in an amount
approximately equal to the then current Interchange with respect to the
Accounts.

                              [END OF ARTICLE III]

                                   ARTICLE IV

                       RIGHTS OF SERIES 2003-2 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 2003-2 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:

                                       16

<PAGE>

                        (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 2003-2 Noteholders and to the
O/C Holder. The Servicer shall, prior to the close of business on any Deposit
Date, allocate to the Series 2003-2 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
        2003-2 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.

                        (ii)    Allocations of Principal Collections. The
        Servicer shall allocate to the Series 2003-2 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 2003-2
                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 2003-2 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

                                       17

<PAGE>

                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 2003-2 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 2003-2 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 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 one-twelfth of the
product of (i) (the Class A Note Interest Rate and (ii) the Class A Note
Principal Balance as of the close of business on the last day of the preceding
Due Period. The Class A Monthly Interest for the first Distribution Date will
equal $1,354,506.67.

                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 one-twelfth of the product of (i) the
Class A Note Interest Rate and (ii) such Class A Interest

                                       18

<PAGE>

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 one-twelfth of the
product of (i) the Class B Note Interest Rate and (ii) the Class B Note
Principal Balance as of the close of business on the last day of the preceding
Due Period. The Class B Monthly Interest for the first Distribution Date will
equal $87,013.33.

                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 one-twelfth of the product of (i) the
Class B Note Interest Rate 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.

                (c)     The amount of monthly interest ("Class C Monthly
Interest") distributable from the Collection Account with respect to the Class C
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
C Note Interest Rate in effect with respect to the related Interest Period and
(ii) the Class C 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 C Interest Shortfall"), of (x) the Class C Monthly
Interest for such Distribution Date over (y) the aggregate amount of funds
expected to be paid with respect to such Class C Monthly Interest on the related
Distribution Date. If the Class C Interest Shortfall with respect to any
Distribution Date is greater than zero, on each subsequent Distribution Date
until such Class C Interest Shortfall is fully paid, an additional amount
("Class C 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 C Note Interest Rate in
effect with respect to the related Interest Period and (ii) such Class C
Interest Shortfall (or the portion thereof which has not been paid to the Class
C Noteholders) shall be payable as provided herein with respect to the Class C
Notes. Notwithstanding anything to the contrary herein, Class C Additional
Interest shall be payable or distributed to the Class C Noteholders only to the
extent permitted by applicable law.

        Section 4.03    Determination of Monthly Principal.

                                       19

<PAGE>

                The amount of monthly principal allocated and made available
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, Excess Finance Charge and Administrative Collections
allocable to Series 2003-2 in accordance with Section 4.07 and Available
Investor Finance Charge and Administrative Collections 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 2003-2 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)   an amount equal to Class C Monthly Interest for
        such Distribution Date, plus the amount of any Class C Monthly Interest
        previously due but not distributed to Class C Noteholders on a prior
        Distribution Date, plus the amount of any Class C Additional Interest
        for such Distribution Date, plus the amount of any Class C Additional
        Interest, or portion thereof, previously due but not distributed to
        Class C Noteholders on a prior Distribution Date, shall be distributed
        to the Paying Agent for payment to Class C Noteholders on the applicable
        Distribution Date;

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<PAGE>

                        (iv)    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 (unless
        such amount has been netted against deposits to the Collection Account
        in accordance with Section 8.04 of the Indenture);

                        (v)     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;

                        (vi)    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;

                        (vii)   upon the occurrence of an Event of Default with
        respect to Series 2003-2 and acceleration of the maturity of the Series
        2003-2 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 2003-2 Noteholders;

                        (viii)  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

                        (ix)    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:

                        (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:

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<PAGE>

                        (i)     during the Controlled Accumulation Period and
        prior to the payment in full of the Class A Notes, the Class B Notes,
        the Class C 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 giving effect to the distribution referred
        to in clauses (ii) and (iii) 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 C
        Noteholders on such Distribution Date and on each subsequent
        Distribution Date until the Class C Note Principal Balance has been paid
        in full;

                        (v)     after the Class C 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

                        (vi)    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, second, to the Class B
Noteholders up to the Class B Note Principal Balance and third, to the Class C
Noteholders up to the Class C Note Principal Balance, the amounts deposited into
the Principal Funding Account pursuant to subsection 4.04(c)(i).

                (e)     The Controlled Accumulation Period is scheduled to
commence on February 1, 2005; provided, however, that, if the Accumulation
Period Length (determined as described below) is less than 12 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

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<PAGE>

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 January 2005,
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)(v) 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 (iv) 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 2003-2 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 2003-2 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 2003-2 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 (viii) 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.

        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 2003-2 in an amount equal to the product of (a) the aggregate amount of
Shared Principal Collections with respect to all Principal Sharing Series in

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<PAGE>

Principal Sharing Group One for such Distribution Date and (b) a fraction, the
numerator of which is the Series 2003-2 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 2003-2
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
Indenture Trustee, for the benefit of the Series 2003-2 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 2003-2 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 2003-2 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 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

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<PAGE>

        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 two Business Days prior to 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
Indenture Trustee, for the benefit of the Series 2003-2 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 2003-2
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 Account shall be under the sole dominion and
control of the Indenture Trustee for the benefit of the Series 2003-2
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

                                       25

<PAGE>

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)(viii).

                (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 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

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<PAGE>

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 or before 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)(viii) 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 Owner Trustee
for distribution in accordance with the Trust Agreement 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 2003-2 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 2003-2
and acceleration of the maturity of the Series 2003-2 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
2003-2 Noteholders in accordance with Section 5.02 to fund any shortfalls in
amounts owed to such Series 2003-2 Noteholders.

        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

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<PAGE>

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, the Class B Note
Interest Rate and the Class C 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 2003-2
Noteholder from time to time.

                (c)     On each LIBOR Determination Date, the Indenture Trustee
shall send to the Servicer by facsimile or electronic transmission, notification
of LIBOR for the following Interest Period. On the March 2003 LIBOR
Determination Date, such notification set LIBOR as 1.27%.

        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 10:30 a.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 10:30 a.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
10:30 a.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 2003-2 Notes from Series 2003-2 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 2003-2 Notes by delivering a written request to the Indenture Trustee to
do so; provided, however, that the Transferor may only cancel Class A, Class B
and Class C 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 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.

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<PAGE>

As a result of any cancellation of Series 2003-2 Notes pursuant to this Section,
(a) the Invested Amount shall be reduced by (i) the aggregate principal amount
of such purchased Series 2003-2 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 2003-2 NOTES;
               DISTRIBUTIONS; REPORTS TO SERIES 2003-2 NOTEHOLDERS

        Section 5.01    Delivery and Payment for the Series 2003-2 Notes. With
respect to the Series 2003-2 Notes which are in certificated form, the Issuer
shall execute and the Indenture Trustee shall authenticate the Series 2003-2
Notes in accordance with Section 2.03 of the Indenture. The Indenture Trustee
shall deliver those Series 2003-2 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 each Class C Noteholder of record on the related Record Date
(other than as provided in Section 11.02 of the Indenture) such Class C
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 C
Notes pursuant to this Indenture Supplement.

                                       29

<PAGE>

                (f)     On each Distribution Date, the Paying Agent shall
distribute to each Class C Noteholder of record on the related Record Date such
Class C 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 C Notes pursuant to this Indenture Supplement.

                (g)     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.

                (h)     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.

                (i)     Except as provided in Section 11.02 of the Indenture
with respect to a final distribution, distributions to Series 2003-2 Noteholders
hereunder shall be made by (i) check mailed to each Series 2003-2 Noteholder (at
such Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2003-2 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 2003-2 Note or the
making of any notation thereon.

        Section 5.03    Reports and Statements to Series 2003-2 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 2003-2 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 2003-2 Noteholder
by a request in writing to the Servicer.

                (d)     On or before January 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 2003-2 Noteholder, a statement prepared by
the Servicer containing the information which is required to be contained in the
statement to Series 2003-2 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.

                                       30

<PAGE>

                (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 2003-2 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.

                                   ARTICLE VI

                        SERIES 2003-2 AMORTIZATION EVENTS

        Section 6.01    Series 2003-2 Amortization Events. If any one of the
following events shall occur with respect to Series 2003-2:

                (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 2003-2 Noteholders and which
continues unremedied and continues to materially and adversely affect the
interests of the Series 2003-2 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 2003-2 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 2003-2 Notes and as a result of which an Adverse Effect occurs with
respect to the Series 2003-2 Noteholders and such Adverse Effect continues for
the designated period; provided, however, that a Series 2003-2 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 2003-2 Noteholders;

                                       31

<PAGE>

                (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, the Class B Note
Principal Balance or the Class C Note Principal Balance shall not be paid in
full on the Expected Principal Payment Date; or

                (g)     without limiting the foregoing, the occurrence of an
Event of Default with respect to Series 2003-2 and an acceleration of the
maturity of the Series 2003-2 Notes pursuant to Section 5.03 of the Indenture;

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 2003-2 Notes evidencing more than 50%
of the aggregate Outstanding Amount of Series 2003-2 Notes by notice then given
in writing to the Transferor and the Servicer (and to the Indenture Trustee if
given by the Series 2003-2 Noteholders) may declare that an amortization event
(a "Series 2003-2 Amortization Event") has occurred as of the date of such
notice, and, in the case of any event described in subparagraph (c), (e), (f),
or (h), a Series 2003-2 Amortization Event shall occur without any notice or
other action on the part of the Indenture Trustee or the Series 2003-2
Noteholders immediately upon the occurrence of such event.

                                  ARTICLE VII

                       REDEMPTION OF SERIES 2003-2 NOTES;
                   SERIES FINAL MATURITY; FINAL DISTRIBUTIONS

        Section 7.01    Optional Redemption of Series 2003-2 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, the Class B Note Initial Principal Balance and the
Class C Note Initial Principal Balance the Servicer shall have the option to
require the Transferor to redeem the Series 2003-2 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 Servicer shall give the Transferor and the Indenture
Trustee at least 30 days prior written notice of the date on which the Servicer
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 2003-2 shall be reduced to
zero and the Series 2003-2 Noteholders shall have no

                                       32

<PAGE>

further interest in or claim against the Trust. The Reassignment Amount shall be
distributed as set forth in subsection 7.02(a).

        Section 7.02    Series Final Maturity.

                (a)     The amount to be paid by the Transferor with respect to
Series 2003-2 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, including, without limitation, payments to be made to the Indenture
Trustee pursuant to Section 5.05 of the Indenture) 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;

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

                                       33

<PAGE>

                        (iv)    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 2003-2 Noteholders shall be deemed distributed in full to
the Series 2003-2 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.

                                  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 2003-2 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
Wilmington Trust Company, not in its individual capacity, but solely in its
capacity as Owner Trustee of the Trust, in no event shall Wilmington Trust
Company 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.

                                       34

<PAGE>

        Section 8.06    Certain Commercial Law Representations and Warranties.

        The Issuer hereby makes the following representations and warranties.
Such representations and warranties shall survive until the termination of this
Indenture Supplement. Such representations and warranties speak of the date that
a security interest in the Receivables is granted to the Indenture Trustee but
shall not be waived by any of the parties to this Indenture Supplement unless
each Rating Agency shall have notified the Transferor, the Administrator, the
Owner Trustee and the Indenture Trustee in writing that such waiver will not
result in a reduction or withdrawal of the rating of any outstanding Series or
Class to which it is a Rating Agency.

        (a)     The Agreement creates a valid and continuing security interest
(as defined in the applicable UCC) in favor of the Indenture Trustee in the
Receivables described in Section 2.01 of the Agreement or in Section 3(a) of any
Assignment, which security interest is prior to all other liens, and is
enforceable as such against creditors of and purchasers from the Issuer.

        (b)     The Receivables constitute "accounts" within the meaning of the
applicable UCC.

        (c)     At the time of its grant of any security interest in the
Receivables pursuant to the Agreement or an Assignment, the Issuer owned and had
good and marketable title to the Receivables free and clear of any lien, claim
or encumbrance of any Person.

        (d)     The Issuer has caused or will have caused, within ten (10) days
of the initial execution of the Agreement and each Assignment, 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 pursuant to the Agreement or
such Assignment.

        (e)     Other than the security interest granted to the Indenture
Trustee pursuant to the Agreement or an Assignment, the Issuer has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed 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 the
Receivables other than any financing statement relating to the security interest
granted to the Indenture Trustee pursuant to the Agreement or an Assignment or
that has been terminated. The Issuer is not aware of any judgment or tax lien
filings against the Issuer.

                            [SIGNATURE PAGE FOLLOWS]

                                       35

<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.

                                HOUSEHOLD AFFINITY CREDIT CARD
                                MASTER NOTE TRUST I

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

                                By:  /s/ Anita E. Dallago
                                    ----------------------------------
                                    Name:  Anita E. Dallago
                                    Title: Senior Financial Services Officer

                                THE BANK OF NEW YORK,
                                not in its individual capacity, but solely as
                                Indenture Trustee, Paying Agent and Securities
                                Intermediary

                                By:  /s/ Helen Lam
                                    ----------------------------------
                                    Name:  Helen Lam
                                    Title: Assistant Treasurer

                                       36

<PAGE>

                                                                     EXHIBIT A-1

REGISTERED                                                           $__________

No. R-___                                                   CUSIP NO. __________

        Unless this Class A Note is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to Household
Affinity Credit Card Master Note Trust I or its agent for registration of
transfer, exchange or payment, and any note issued is registered in the name of
CEDE & CO. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to CEDE & CO. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as
the registered owner hereof, CEDE & CO., has an interest herein.

        HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I, SERIES 2003-2

              FORM OF CLASS A SERIES 2003-2 2.18% ASSET BACKED NOTE

        Household Affinity Credit Card Master Note Trust I (herein referred to
as the "Issuer" or the "Trust"), a Delaware statutory trust governed by a Trust
Agreement, dated as of February 14, 2003, for value received, hereby promises to
pay to CEDE & CO., or registered assigns, subject to the following provisions,
the principal sum of $699,000,000, on the Series 2003-2 Final Maturity Date,
except as otherwise provided below or in the Indenture. The Issuer will pay
interest on the unpaid principal amount of this Note at the Class A Note
Interest Rate on each Distribution Date until the principal amount of this Note
is paid in full. Interest on this Note will accrue for each Distribution Date
from and including the most recent Distribution Date on which interest has been
paid to but excluding such Distribution Date or, for the initial Distribution
Date, from and including the Closing Date to but excluding such Distribution
Date. Interest will be computed on the basis of a 360-day year and twelve 30-day
months. Principal of this Note shall be paid in the manner specified on the
reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by or
on behalf of the Indenture Trustee, by manual signature, this Note shall not be
entitled to any benefit under the Indenture or the Indenture Supplement referred
to on the reverse hereof, or be valid for any purpose.

                                      A-1-1

<PAGE>

                IN WITNESS WHEREOF, the Issuer has caused this Class A Note to
be duly executed.

                                    HOUSEHOLD AFFINITY CREDIT CARD MASTER
                                    NOTE TRUST I,
                                    Issuer

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

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

Dated:  [.]

                                      A-1-2

<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes described in the within-mentioned Indenture.

                                    THE BANK OF NEW YORK,
                                    as Indenture Trustee

                                    By:
                                        ----------------------------------
                                            Authorized Signatory

                                      A-1-3

<PAGE>

        HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I, SERIES 2003-2

                  CLASS A SERIES 2003-2 2.18% ASSET BACKED NOTE

                         Summary of Terms and Conditions

                This Class A Note is one of a duly authorized issue of Notes of
the Issuer, designated as Household Affinity Credit Card Master Note Trust I,
Series 2003-2 (the "Notes"), issued under an Amended and Restated Master
Indenture, dated as of March 13, 2003 (the "Master Indenture"), between the
Issuer and The Bank of New York, as indenture trustee (the "Indenture Trustee"),
paying agent and securities intermediary, as supplemented by the Indenture
Supplement, dated as of March 13, 2003 (the "Indenture Supplement"), and
representing the right to receive certain payments from the Issuer. The term
"Indenture," unless the context otherwise requires, refers to the Master
Indenture as supplemented by the Indenture Supplement. The Notes are subject to
all of the terms of the Indenture. All terms used in this Note that are defined
in the Indenture shall have the meanings assigned to them in or pursuant to the
Indenture. In the event of any conflict or inconsistency between the Indenture
and this Note, the Indenture shall control.

                The Noteholder, by its acceptance of this Note, agrees that it
will look solely to the property of the Trust allocated to the payment of this
Note for payment hereunder and that the Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Indenture or, except as
expressly provided in the Indenture, subject to any liability under the
Indenture.

                This Note does not purport to summarize the Indenture and
reference is made to the Indenture for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Indenture Trustee.

                The Class A Note Initial Principal Balance is $699,000,000. The
Class A Note Principal Balance will be determined from time to time by the
Indenture Trustee in accordance with the Indenture.

                Payments of principal of the Notes shall be payable in
accordance with the provisions of the Indenture.

                Subject to the terms and conditions of the Indenture, the
Transferor may, from time to time, direct the Trust, to issue one or more new
Series of Notes.

                On each Distribution Date, the Paying Agent shall distribute to
each Class A Noteholder of record on the related Record Date (except for the
final distribution in respect of this Class A Note) 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 and principal on the Class A
Notes pursuant to the Indenture Supplement. Except as provided in the Indenture
with respect to a final distribution, distributions to Series 2003-2 Noteholders
shall be made by (i) check mailed to each Series 2003-2 Noteholder (at such
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2003-2 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 2003-2 Note or the
making of any notation thereon. Final payment of this Class A Note will be made
only upon presentation and surrender of this Class A Note at the office or
agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2003-2 Noteholders in accordance with the Indenture.

                                      A-1-4

<PAGE>

                On any day occurring on or after the date on which the
outstanding principal balance of the Series 2003-2 Notes is reduced to 10% or
less of the initial outstanding principal balance of the Series 2003-2 Notes,
the Transferor shall have the option to redeem the Series 2003-2 Notes, 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.

                This Class A Note does not represent an obligation of, or an
interest in, the Transferor, Household Finance Corporation, Household
Receivables Acquisition Company II, Household Affinity Funding Corporation II,
Household Bank (SB), National Association or any Affiliate of any of them and is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency or instrumentality.

                Each Noteholder, by accepting a Note, hereby covenants and
agrees that it will not at any time institute against the Issuer or the
Transferor, or join in instituting against the Issuer or the Transferor, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law.

                Except as otherwise provided in the Indenture Supplement, the
Class A Notes are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000. The transfer of this Class A Note shall be registered in
the Note Register upon surrender of this Class A Note for registration of
transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the
Class A Noteholder or such Class A Noteholder's attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class A
Notes in any authorized denominations of like aggregate principal amount will be
issued to the designated transferee or transferees.

                As provided in the Indenture and subject to certain limitations
therein set forth, Class A Notes are exchangeable for new Class A Notes in any
authorized denominations and of like aggregate principal amount, upon surrender
of such Notes to be exchanged at the office or agency of the Transfer Agent and
Registrar. No service charge may be imposed for any such exchange but the Issuer
or Transfer Agent and Registrar may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection
therewith.

                The Issuer, the Transferor, the Indenture Trustee and any agent
of the Issuer, Transferor or the Indenture Trustee shall treat the person in
whose name this Class A Note is registered as the owner hereof for all purposes,
and neither the Issuer, the Transferor, the Indenture Trustee nor any agent of
the Issuer, Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

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

                                      A-1-5

<PAGE>

                                   ASSIGNMENT

Social Security or other identifying number of assignee ________________________

                FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _____________________________________
                (name and address of assignee)

the within note and all rights thereunder, and hereby irrevocably constitutes
and appoints ____________________, attorney, to transfer said note on the books
kept for registration thereof, with full power of substitution in the premises.

Dated: ____________                       ----------------------/1/

                                          Signature Guaranteed:

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

----------

/1/     NOTE: The signature to this assignment must correspond with the name of
        the registered owner as it appears on the face of the within note in
        every particular, without alteration, enlargement or any change
        whatsoever.

                                      A-1-6

<PAGE>

                                                                     EXHIBIT A-2

REGISTERED                                                           $__________

No. R-__                                                    CUSIP NO. __________

        Unless this Class B Note is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to Household
Affinity Credit Card Master Note Trust I or its agent for registration of
transfer, exchange or payment, and any note issued is registered in the name
CEDE & CO. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to CEDE & CO. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as
the registered owner hereof, CEDE & CO., has an interest herein.

        HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I, SERIES 2003-2

              FORM OF CLASS B SERIES 2003-2 2.51% ASSET BACKED NOTE

        Household Affinity Credit Card Master Note Trust I (herein referred to
as the "Issuer" or the "Trust"), a Delaware statutory trust governed by a Trust
Agreement, dated as of February 14, 2003, for value received, hereby promises to
pay to CEDE & CO., or registered assigns, subject to the following provisions,
the principal sum of $39,000,000, on the Series 2003-2 Final Maturity Date,
except as otherwise provided below or in the Indenture. The Issuer will pay
interest on the unpaid principal amount of this Note at the Class B Note
Interest Rate on each Distribution Date until the principal amount of this Note
is paid in full. Interest on this Note will accrue for each Distribution Date
from and including the most recent Distribution Date on which interest has been
paid to but excluding such Distribution Date or, for the initial Distribution
Date, from and including the Closing Date to but excluding such Distribution
Date. Interest will be computed on the basis of a 360-day year and twelve 30-day
months. Principal of this Note shall be paid in the manner specified on the
reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by or
on behalf of the Indenture Trustee, by manual signature, this Note shall not be
entitled to any benefit under the Indenture or the Indenture Supplement referred
to on the reverse hereof, or be valid for any purpose.

                                      A-2-1

<PAGE>

                IN WITNESS WHEREOF, the Issuer has caused this Class B Note to
be duly executed.

                                    HOUSEHOLD AFFINITY CREDIT CARD MASTER
                                    NOTE TRUST I,
                                    Issuer

                                    By: WILMINGTON TRUST COMPANY, not in its
                                        individual capacity but solely as Owner
                                        Trustee of the Trust

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

Dated:  [.]

                                      A-2-2

<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class B Notes described in the within-mentioned Indenture.

                                    THE BANK OF NEW YORK,
                                    as Indenture Trustee

                                    By: ----------------------------------
                                           Authorized Signatory

                                      A-2-3

<PAGE>

        HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I, SERIES 2003-2

                  CLASS B SERIES 2003-2 2.51% ASSET BACKED NOTE

                         Summary of Terms and Conditions

                This Class B Note is one of a duly authorized issue of Notes of
the Issuer, designated as Household Affinity Credit Card Master Note Trust I,
Series 2003-2 the "Notes"), issued under an Amended and Restated Master
Indenture, dated as of March 13, 2003 (the "Master Indenture"), between the
Issuer and The Bank of New York, as indenture trustee (the "Indenture Trustee"),
as supplemented by the Indenture Supplement, dated as of March 13, 2003 (the
"Indenture Supplement"), and representing the right to receive certain payments
from the Issuer. The term "Indenture," unless the context otherwise requires,
refers to the Master Indenture as supplemented by the Indenture Supplement. The
Notes are subject to all of the terms of the Indenture. All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture. In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

                The Noteholder, by its acceptance of this Note, agrees that it
will look solely to the property of the Trust allocated to the payment of this
Note for payment hereunder and that the Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Indenture or, except as
expressly provided in the Indenture, subject to any liability under the
Indenture.

                This Note does not purport to summarize the Indenture and
reference is made to the Indenture for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Indenture Trustee.

                The Class B Note Initial Principal Balance is $39,000,000. The
Class B Note Principal Balance will be determined from time to time by the
Indenture Trustee in accordance with the Indenture.

                Payments of principal of the Notes shall be payable in
accordance with the provisions of the Indenture.

                Subject to the terms and conditions of the Indenture, the
Transferor may, from time to time, direct the Trust, to issue one or more new
Series of Notes.

                On each Distribution Date, the Paying Agent shall distribute to
each Class B Noteholder of record on the related Record Date (except for the
final distribution in respect of this Class B Note) 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 and principal on the Class B
Notes pursuant to the Indenture Supplement. Except as provided in the Indenture
with respect to a final distribution, distributions to Series 2003-2 Noteholders
shall be made by (i) check mailed to each Series 2003-2 Noteholder (at such
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2003-2 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 2003-2 Note or the
making of any notation thereon. Final payment of this Class B Note will be made
only upon presentation and surrender of this Class B Note at the office or
agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2003-2 Noteholders in accordance with the Indenture.

                                      A-2-4

<PAGE>

                On any day occurring on or after the date on which the
outstanding principal balance of the Series 2003-2 Notes is reduced to 10% or
less of the initial outstanding principal balance of the Series 2003-2 Notes,
the Transferor shall have the option to redeem the Series 2003-2 Notes, 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.

                This Class B Note does not represent an obligation of, or an
interest in, the Transferor, Household Finance Corporation, Household
Receivables Acquisition Company II, Household Affinity Funding Corporation II,
Household Bank (SB), National Association or any Affiliate of any of them and is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency or instrumentality.

                Each Noteholder, by accepting a Note, hereby covenants and
agrees that it will not at any time institute against the Issuer or the
Transferor, or join in instituting against the Issuer or the Transferor, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law.

                Except as otherwise provided in the Indenture Supplement, the
Class B Notes are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000. The transfer of this Class B Note shall be registered in
the Note Register upon surrender of this Class B Note for registration of
transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the
Class B Noteholder or such Class B Noteholder's attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class B
Notes in any authorized denominations of like aggregate principal amount will be
issued to the designated transferee or transferees.

                As provided in the Indenture and subject to certain limitations
therein set forth, Class B Notes are exchangeable for new Class B Notes in any
authorized denominations and of like aggregate principal amount, upon surrender
of such Notes to be exchanged at the office or agency of the Transfer Agent and
Registrar. No service charge may be imposed for any such exchange but the Issuer
or Transfer Agent and Registrar may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection
therewith.

                The Issuer, the Transferor, the Indenture Trustee and any agent
of the Issuer, Transferor or the Indenture Trustee shall treat the person in
whose name this Class B Note is registered as the owner hereof for all purposes,
and neither the Issuer, the Transferor, the Indenture Trustee nor any agent of
the Issuer, Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

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

                                      A-2-5

<PAGE>

                                   ASSIGNMENT

Social Security or other identifying number of assignee ________________________

                FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _____________________________________
                (name and address of assignee)

the within note and all rights thereunder, and hereby irrevocably constitutes
and appoints ____________________, attorney, to transfer said note on the books
kept for registration thereof, with full power of substitution in the premises.

Dated: ____________                       ----------------------/2/

                                          Signature Guaranteed:

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

----------

/2/     NOTE: The signature to this assignment must correspond with the name of
        the registered owner as it appears on the face of the within note in
        every particular, without alteration, enlargement or any change
        whatsoever.

                                     A-2-6

<PAGE>

                                                                     EXHIBIT A-3

REGISTERED                                                           $__________

No. R-__                                                    CUSIP NO. __________

        Unless this Class C Note is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to Household
Affinity Credit Card Master Note Trust I or its agent for registration of
transfer, exchange or payment, and any note issued is registered in the name
CEDE & CO. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to CEDE & CO. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as
the registered owner hereof, CEDE & CO., has an interest herein.

        HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I, SERIES 2003-2

          FORM OF CLASS C SERIES 2003-2 FLOATING RATE ASSET BACKED NOTE

        Household Affinity Credit Card Master Note Trust I (herein referred to
as the "Issuer" or the "Trust"), a Delaware statutory trust governed by a Trust
Agreement, dated as of February 14, 2003, for value received, hereby promises to
pay to CEDE & CO., or registered assigns, subject to the following provisions,
the principal sum of $12,000,000, on the Series 2003-2 Final Maturity Date,
except as otherwise provided below or in the Indenture. The Issuer will pay
interest on the unpaid principal amount of this Note at the Class C Note
Interest Rate on each Distribution Date until the principal amount of this Note
is paid in full. Interest on this Note will accrue for each Distribution Date
from and including the most recent Distribution Date on which interest has been
paid to but excluding such Distribution Date or, for the initial Distribution
Date, from and including the Closing Date to but excluding such Distribution
Date. Interest will be computed on the basis of a 360-day year and the actual
number of days elapsed. Principal of this Note shall be paid in the manner
specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by or
on behalf of the Indenture Trustee, by manual signature, this Note shall not be
entitled to any benefit under the Indenture or the Indenture Supplement referred
to on the reverse hereof, or be valid for any purpose.

                                      A-3-1

<PAGE>

          IN WITNESS WHEREOF, the Issuer has caused this Class C Note to be duly
executed.

                                    HOUSEHOLD AFFINITY CREDIT CARD MASTER
                                    NOTE TRUST I,
                                    Issuer

                                    By: WILMINGTON TRUST COMPANY, not in its
                                        individual capacity but solely as Owner
                                        Trustee of the Trust

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

Dated:  [.]

                                      A-3-2

<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class C Notes described in the within-mentioned Indenture.

                                    THE BANK OF NEW YORK,
                                    as Indenture Trustee

                                    By: ----------------------------------
                                          Authorized Signatory

                                      A-3-3

<PAGE>

        HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I, SERIES 2003-2

              CLASS C SERIES 2003-2 FLOATING RATE ASSET BACKED NOTE

                         Summary of Terms and Conditions

                This Class C Note is one of a duly authorized issue of Notes of
the Issuer, designated as Household Affinity Credit Card Master Note Trust I,
Series 2003-2 the "Notes"), issued under an Amended and Restated Master
Indenture, dated as of March 13, 2003 (the "Master Indenture"), between the
Issuer and The Bank of New York, as indenture trustee (the "Indenture Trustee"),
as supplemented by the Indenture Supplement, dated as of March 13, 2003 (the
"Indenture Supplement"), and representing the right to receive certain payments
from the Issuer. The term "Indenture," unless the context otherwise requires,
refers to the Master Indenture as supplemented by the Indenture Supplement. The
Notes are subject to all of the terms of the Indenture. All terms used in this
Note that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture. In the event of any conflict or inconsistency
between the Indenture and this Note, the Indenture shall control.

                The Noteholder, by its acceptance of this Note, agrees that it
will look solely to the property of the Trust allocated to the payment of this
Note for payment hereunder and that the Indenture Trustee is not liable to the
Noteholders for any amount payable under the Note or the Indenture or, except as
expressly provided in the Indenture, subject to any liability under the
Indenture.

                This Note does not purport to summarize the Indenture and
reference is made to the Indenture for the interests, rights and limitations of
rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Indenture Trustee.

                The Class C Note Initial Principal Balance is $12,000,000. The
Class C Note Principal Balance will be determined from time to time by the
Indenture Trustee in accordance with the Indenture.

                Payments of principal of the Notes shall be payable in
accordance with the provisions of the Indenture.

                Subject to the terms and conditions of the Indenture, the
Transferor may, from time to time, direct the Trust, to issue one or more new
Series of Notes.

                On each Distribution Date, the Paying Agent shall distribute to
each Class C Noteholder of record on the related Record Date (except for the
final distribution in respect of this Class C Note) such Class C 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 and principal on the Class C
Notes pursuant to the Indenture Supplement. Except as provided in the Indenture
with respect to a final distribution, distributions to Series 2003-2 Noteholders
shall be made by (i) check mailed to each Series 2003-2 Noteholder (at such
Noteholder's address as it appears in the Note Register), except that with
respect to any Series 2003-2 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 2003-2 Note or the
making of any notation thereon. Final payment of this Class C Note will be made
only upon presentation and surrender of this Class C Note at the office or
agency specified in the notice of final distribution delivered by the Indenture
Trustee to the Series 2003-2 Noteholders in accordance with the Indenture.

                                      A-3-4

<PAGE>

                On any day occurring on or after the date on which the
outstanding principal balance of the Series 2003-2 Notes is reduced to 10% or
less of the initial outstanding principal balance of the Series 2003-2 Notes,
the Transferor shall have the option to redeem the Series 2003-2 Notes, 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.

                This Class C Note does not represent an obligation of, or an
interest in, the Transferor, Household Finance Corporation, Household
Receivables Acquisition Company II, Household Affinity Funding Corporation II,
Household Bank (SB), National Association or any Affiliate of any of them and is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other governmental agency or instrumentality.

                Each Noteholder, by accepting a Note, hereby covenants and
agrees that it will not at any time institute against the Issuer or the
Transferor, or join in instituting against the Issuer or the Transferor, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law.

                Except as otherwise provided in the Indenture Supplement, the
Class C Notes are issuable only in minimum denominations of $1,000 and integral
multiples of $1,000. The transfer of this Class C Note shall be registered in
the Note Register upon surrender of this Class C Note for registration of
transfer at any office or agency maintained by the Transfer Agent and Registrar
accompanied by a written instrument of transfer, in a form satisfactory to the
Indenture Trustee or the Transfer Agent and Registrar, duly executed by the
Class C Noteholder or such Class C Noteholder's attorney, and duly authorized in
writing with such signature guaranteed, and thereupon one or more new Class C
Notes in any authorized denominations of like aggregate principal amount will be
issued to the designated transferee or transferees.

                As provided in the Indenture and subject to certain limitations
therein set forth, Class C Notes are exchangeable for new Class C Notes in any
authorized denominations and of like aggregate principal amount, upon surrender
of such Notes to be exchanged at the office or agency of the Transfer Agent and
Registrar. No service charge may be imposed for any such exchange but the Issuer
or Transfer Agent and Registrar may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection
therewith.

                The Issuer, the Transferor, the Indenture Trustee and any agent
of the Issuer, Transferor or the Indenture Trustee shall treat the person in
whose name this Class C Note is registered as the owner hereof for all purposes,
and neither the Issuer, the Transferor, the Indenture Trustee nor any agent of
the Issuer, Transferor or the Indenture Trustee shall be affected by notice to
the contrary.

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

                                      A-3-5

<PAGE>

                                   ASSIGNMENT

Social Security or other identifying number of assignee _______________________

                FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _____________________________________
                (name and address of assignee)

the within note and all rights thereunder, and hereby irrevocably constitutes
and appoints ____________________, attorney, to transfer said note on the books
kept for registration thereof, with full power of substitution in the premises.

Dated: ____________                       ----------------------/3/

                                          Signature Guaranteed:

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

----------

/3/     NOTE: The signature to this assignment must correspond with the name of
        the registered owner as it appears on the face of the within note in
        every particular, without alteration, enlargement or any change
        whatsoever.

                                      A-3-6<PAGE>

                                                                     EXHIBIT 4.4

                                                                  EXECUTION COPY

________________________________________________________________________________

                         HOUSEHOLD AFFINITY CREDIT CARD
                               MASTER NOTE TRUST I

                                 TRUST AGREEMENT

                   HOUSEHOLD AFFINITY FUNDING CORPORATION III,

                                   Transferor

                                       and

                            WILMINGTON TRUST COMPANY,

                                  Owner Trustee

                          Dated as of February 14, 2003

________________________________________________________________________________

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I   DEFINITIONS .....................................................  1

     SECTION 1.01  CAPITALIZED TERMS ........................................  1

     SECTION 1.02. OTHER DEFINITIONAL PROVISIONS ............................  3

ARTICLE II  ORGANIZATION ....................................................  4

     SECTION 2.01. NAME .....................................................  4

     SECTION 2.02. OFFICE ...................................................  4

     SECTION 2.03. PURPOSES AND POWERS; TRUST TO OPERATE AS A SINGLE
                   PURPOSE ENTITY ...........................................  4

     SECTION 2.04. APPOINTMENT OF OWNER TRUSTEE .............................  4

     SECTION 2.05. INITIAL CAPITAL CONTRIBUTION OF TRUST ESTATE .............  5

     SECTION 2.06. DECLARATION OF TRUST .....................................  5

     SECTION 2.07. TITLE TO TRUST ESTATE ....................................  5

     SECTION 2.08. SITUS OF TRUST; PRINCIPAL OFFICE OF OWNER TRUSTEE.........  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

     SECTION 2.12. FISCAL YEAR. .............................................  7

     SECTION 2.13. CLOSING. .................................................  7

     SECTION 2.14. BOOKS AND RECORDS. .......................................  7

     SECTION 2.15. LIMITATION ON LIABILITY OF TRANSFEROR AND OTHERS .........  7

ARTICLE III CERTIFICATES ....................................................  8

     SECTION 3.01. INITIAL OWNERSHIP ........................................  8

     SECTION 3.02. FORM OF CERTIFICATES .....................................  8

     SECTION 3.03. AUTHENTICATION OF CERTIFICATES ...........................  8

     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 ..................  9

ARTICLE IV  ACTIONS BY OWNER TRUSTEE ........................................ 11

     SECTION 4.01. PRIOR NOTICE TO TRANSFEROR WITH RESPECT TO CERTAIN
                   MATTERS .................................................. 11

     SECTION 4.02. RESTRICTIONS ON POWER .................................... 11

ARTICLE V   AUTHORITY AND DUTIES OF OWNER TRUSTEE ........................... 12

     SECTION 5.01. GENERAL AUTHORITY ........................................ 12

     SECTION 5.02. GENERAL DUTIES ........................................... 12

     SECTION 5.03. ACTION UPON INSTRUCTION .................................. 12

                                      -i-

<PAGE>

                          TABLE OF CONTENTS (cont'd.)

     SECTION 5.04.  NO DUTIES EXCEPT AS SPECIFIED IN THIS AGREEMENT
                    OR IN INSTRUCTIONS .....................................  13

     SECTION 5.05.  NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR
                    INSTRUCTIONS ...........................................  13

     SECTION 5.06.  RESTRICTIONS ...........................................  13

ARTICLE VI    CONCERNING THE TRUST COMPANY AND THE OWNER TRUSTEE ...........  14

     SECTION 6.01   ACCEPTANCE OF TRUST AND DUTIES .........................  14

     SECTION 6.02.  FURNISHING OF DOCUMENTS ................................  15

     SECTION 6.03.  REPRESENTATIONS AND WARRANTIES .........................  15

     SECTION 6.04.  RELIANCE; ADVICE OF COUNSEL ............................  15

     SECTION 6.05.  NOT ACTING IN INDIVIDUAL CAPACITY ......................  16

     SECTION 6.06.  OWNER TRUSTEE NOT LIABLE FOR CERTIFICATES,
                    NOTES OR RECEIVABLES ...................................  16

     SECTION 6.07.  OWNER TRUSTEE MAY OWN NOTES ............................  16

     SECTION 6.08.  PAYMENTS FROM TRUST ESTATE .............................  17

ARTICLE VII   COMPENSATION OF TRUST COMPANY ................................  18

     SECTION 7.01.  TRUST COMPANY'S FEES AND EXPENSES ......................  18

     SECTION 7.02.  INDEMNIFICATION ........................................  18

     SECTION 7.03.  PAYMENTS TO THE OWNER TRUSTEE ..........................  18

     SECTION 7.04.  NON-RECOURSE OBLIGATIONS ...............................  18

ARTICLE VIII  TERMINATION OF TRUST AGREEMENT ...............................  19

     SECTION 8.01.  TERMINATION OF TRUST AGREEMENT .........................  19

ARTICLE IX    SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES .......  20

     SECTION 9.01.  ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE .............  20

     SECTION 9.02.  RESIGNATION OR REMOVAL OF OWNER TRUSTEE ................  20

     SECTION 9.03.  SUCCESSOR OWNER TRUSTEE ................................  20

     SECTION 9.04.  MERGER OR CONSOLIDATION OF OWNER TRUSTEE ...............  21

     SECTION 9.05.  APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE ..........  21

ARTICLE X     MISCELLANEOUS ................................................  23

     SECTION 10.01. SUPPLEMENTS AND AMENDMENTS .............................  23

     SECTION 10.02. NO LEGAL TITLE TO TRUST ESTATE IN TRANSFEROR ...........  24

     SECTION 10.03. LIMITATIONS ON RIGHTS OF OTHERS ........................  24

     SECTION 10.04. NOTICES ................................................  24

     SECTION 10.05. SEVERABILITY ...........................................  24

     SECTION 10.06. SEPARATE COUNTERPARTS ..................................  24

                                       ii

<PAGE>

                          TABLE OF CONTENTS (cont'd.)

     SECTION 10.07. SUCCESSORS AND ASSIGNS .................................  24

     SECTION 10.08. NONPETITION COVENANTS ..................................  25

     SECTION 10.09. NO RECOURSE ............................................  25

     SECTION 10.10. HEADINGS ...............................................  25

     SECTION 10.11. GOVERNING LAW ..........................................  25

     SECTION 10.12. [RESERVED] .............................................  25

     SECTION 10.13. ACCEPTANCE OF TERMS OF AGREEMENT .......................  25

     SECTION 10.14. INTEGRATION OF DOCUMENTS ...............................  25

                                      iii

<PAGE>

                          TABLE OF CONTENTS (cont'd.)

                                    EXHIBITS

EXHIBIT A  FORM OF TRANSFEROR CERTIFICATE .................................  A-1

EXHIBIT B  CERTIFICATE OF TRUST OF HOUSEHOLD AFFINITY CREDIT CARD
           MASTER NOTE TRUST I ............................................  B-1

                                       iv

<PAGE>

     HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I TRUST AGREEMENT, dated
as of February 14, 2003, between HOUSEHOLD AFFINITY FUNDING CORPORATION III, 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:

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

     "Certificate of Trust" shall mean the Certificate of Trust of the Trust in
the form attached hereto as Exhibit B which has been filed for the Trust
pursuant to Section 3810(a) of the Delaware Statutory Trust Act.

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

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

     "Corporate Trust Office" shall mean, with respect to the Owner Trustee, the
principal corporate trust office of the Owner Trustee located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention:
Corporate Trust Administration; 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).

     "Delaware Statutory Trust Act" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Del. C.(S)(S)3801 et seq., as amended from time to time, and
any successor statute thereto.

     "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 February 18, 2003,
between the Issuer and The Bank of New York, as Indenture Trustee, as the same
may be amended, supplemented or otherwise modified from time to time.

     "Indenture Trustee" shall mean The Bank of New York, 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.

<PAGE>

     "Owner" shall mean Household Affinity Funding Corporation III, and its
successors and permitted assigns, in its capacity as holder of the Transferor
Certificate and beneficial owner of the Trust hereunder.

     "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).

     "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)(2) 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).

     "Transaction Documents" shall mean, with respect to any Series of Notes,
the Receivables Purchase Agreements, the Transfer and Servicing Agreement, the
Indenture, the related Indenture Supplement, the Transferor Certificate, the
Certificate of Trust and such other documents and certificates delivered in
connection herewith and therewith.

     "Transfer and Servicing Agreement" shall mean the Transfer and Servicing
Agreement, dated as of February 18, 2003, 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 Affinity Funding Corporation III, 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 Certificate" shall mean the Transferor's uncertificated
beneficial interest in the Trust as set forth in Section 3.06; provided,
however, if the Transferor elects to evidence such beneficial interest in
certificated form pursuant to Section 3.06, the certificate shall be executed by
the Trust and authenticated by or on behalf of the Owner Trustee, substantially
in the form of Exhibit A.

     "Trust" shall mean the statutory trust created by this Agreement and the
filing of the Certificate of Trust with the Secretary of State.

     "Trust Company" shall mean Wilmington Trust Company, a Delaware banking
corporation.

     "Trust Estate" shall mean all right, title and interest of the Trust in and
to the property and rights assigned to the Trust pursuant to 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 Accounts and the Special Funding
Account and all other property of the Trust from time to time, including any
rights of the Owner Trustee and the Trust pursuant to the Transaction Documents.

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

                                       2

<PAGE>

     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.

                               [End of Article I]

                                       3

<PAGE>

                                   ARTICLE II

                                  ORGANIZATION

     Section 2.01. Name. The Trust created hereby shall be known as "Household
Affinity Credit Card Master Note Trust I," under which name the Trust or the
Owner Trustee, on behalf of the Trust, may conduct any activities and business
of the Trust contemplated hereby, execute contracts and other instruments and
sue and be sued.

     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.

     Section 2.03. Purposes and Powers; Trust to Operate as a Single Purpose
Entity. The purpose of the Trust is and the Trust and the Owner Trustee, on
behalf of the Trust, shall have the power and authority to engage in the
following activities:

          (i)   to execute, deliver and issue the Notes pursuant to the
     Indenture and to issue 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, transfer, convey 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 execute, deliver 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 Trust shall not engage in any activity other than in connection with
the foregoing or other than as required or authorized by the terms of this
Agreement or the Transaction Documents.

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

                                       4

<PAGE>

     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 Owner, subject to the obligations of
the Trust under the Transaction Documents to which it is a party. It is the
intention of the parties hereto that the Trust constitute a statutory trust
under the Delaware Statutory Trust Act and that this Agreement constitutes the
governing instrument of such statutory trust. It is the intention of the parties
hereto that, for income and franchise tax purposes, the Trust and its assets
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 and, to the extent not inconsistent herewith, in the
Delaware Statutory Trust Act with respect to accomplishing the purposes of the
Trust.

     Section 2.07. Title to Trust Estate. Legal title to all of the Trust Estate
shall be vested at all times in the Trust as a separate legal entity except
where applicable law in any jurisdiction requires title to any part of the Trust
Estate to be vested in a trustee or trustees, in which case legal title shall be
deemed to be vested in the Owner Trustee, a co-trustee and/or a separate
trustee, as the case may be.

     Section 2.08. Situs of Trust; Principal Office of Owner Trustee. 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.

                                       5

<PAGE>

     (c) The execution and delivery by the Transferor of this Agreement and the
consummation by the Transferor 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.

     (d) The execution and delivery by the Transferor of this Agreement, the
performance by the Transferor 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 by the Transferor of this Agreement, the
performance by the Transferor of the transactions contemplated by this Agreement
and the fulfillment by the Transferor 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 this Agreement or 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 this Agreement or 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 this
Agreement or 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 this Agreement or 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, and which is otherwise available for
distribution, 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.

                                       6

<PAGE>

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 transfer of immediately available funds or by such
other means as are acceptable to the Owner Trustee to the extent the Owner
Trustee receives all necessary payment information from the holders of the
Certificates 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.

     Section 2.12. Fiscal Year. The fiscal year of the Trust will end on the
last day of December of each year.

     Section 2.13. Closing. The transfer, assignment, set-over, pledge and
conveyance of the Trust Estate and the initial issuance of Notes shall take
place on February 18, 2003 at the offices of Orrick, Herrington & Sutcliffe LLP,
666 Fifth Avenue, New York, New York 10103.

     Section 2.14. Books and Records. The Transferor agrees to authorize, record
and file, at its own expense, any financing statements (and amendments with
respect to such financing statements when applicable) required to be filed with
respect to the Trust Estate assigned by the Transferor pursuant to this
Agreement and the Transfer and Servicing Agreement, meeting the requirements of
applicable law in such manner and in such jurisdictions as are necessary under
the applicable UCC to perfect the transfer, assignment, set-over, pledge and
conveyance of the Trust Estate to the Trust, and to deliver a file-stamped copy
of such financing statements or amendments or other evidence of such filings to
the Trust (excluding such amendments, which shall be delivered promptly after
filing).

     Section 2.15. Limitation on Liability of Transferor and Others. The
Transferor and any director or officer or employee or agent of the Transferor
may rely in good faith on the advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. Except to the extent specifically set forth in the
Transaction Documents, the Owner shall be entitled to the same limitation of
personal liability extended to stockholders of private corporations for profit
organized under the General Corporation Law of the State of Delaware.

                               [End of Article II]

                                       7

<PAGE>

                                   ARTICLE III

                                  CERTIFICATES

     Section 3.01. Initial Ownership. Upon the creation of the Trust, 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 Owner 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, if certificated, shall be executed on behalf of the
Trust 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 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

                                       8

<PAGE>

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) The Transferor
Certificate shall represent an undivided beneficial 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) At any time, a Transferor may surrender its certificated Transferor
Certificate to the Owner Trustee or request in writing that the Owner Trustee
transfer an uncertificated Transferor Certificate on the books and records of
the Trust 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, 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 and that all other conditions to the issuance of such Supplemental
     Certificates have been satisfied;

                                       9

<PAGE>

          (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 (or transfer) 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 Owner Trustee and the Indenture 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.

                              [End of Article III]

                                       10

<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 Trust 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 (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 (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; or

     (d) 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 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 Trust or the Owner Trustee under any
of the Transaction Documents or would be contrary to Section 2.03.

                               [End of Article IV]

                                       11

<PAGE>

                                    ARTICLE V

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

     Section 5.01. General Authority. Each of the Trust and the Owner Trustee,
in the name and on behalf of the Trust, shall have the power and authority, and
is hereby authorized and directed to execute and deliver the Transaction
Documents to which the Trust is a party and each certificate or other document
attached as an exhibit to or contemplated by or in connection with the
Transaction Documents to which the Trust is to be a party, including, without
limitation, a filing authorization authorizing the filing of a financing
statement with the Secretary of State on the date hereof in connection with the
Indenture, the Certificates and the Notes, 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, in the name and on behalf of the Trust, is authorized, but
shall not be obligated, to take all actions required of the Trust pursuant to
the Transaction Documents. The Owner Trustee, in the name and on behalf of the
Trust, is further authorized from time to time to take such action as the
Transferor or the Servicer 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 Owner, 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 Servicer has agreed in the Transfer and
Servicing 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 Servicer to carry out its obligations under the Transfer and Servicing
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

                                       12

<PAGE>

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 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 Trust 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 or to the Trust
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. The Transferor shall not direct the Owner Trustee to take action that
would violate the provisions of this Section.

     Section 5.07. Notwithstanding anything to the contrary herein or in any
Transaction Document or other document, the Owner Trustee shall not be required
to execute, deliver or certify on behalf of the Owner Trustee, the Trust or any
other Person any filings, certificates, affidavits or other instruments required
by the SEC or required under the Sarbanes-Oxley Act of 2002. Notwithstanding any
Person's right to instruct the Owner trustee, neither the Owner Trustee nor any
agent, employee, director or officer of the Owner Trustee shall have any
obligation to execute any certificates or other documents required by the SEC or
required pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations
promulgated thereunder, and the refusal to comply with any such instructions
shall not constitute a default or breach under any Transaction Document.

                                       13

<PAGE>

                               [End of Article V]

                                       14

<PAGE>

                                   ARTICLE VI

               CONCERNING THE TRUST COMPANY AND THE OWNER TRUSTEE

     Section 6.01 Acceptance of Trust and Duties. The Trust Company accepts the
trust hereby created and agrees to perform its duties hereunder with respect to
such trust, but only upon the terms of this Agreement. The Trust Company also
agrees to disburse all moneys actually received by it constituting part of the
Trust Estate in accordance with the terms of the Transaction Documents. The
Trust Company shall not be answerable or accountable under this Agreement or 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 Trust Company shall not be personally liable for any error of
judgment made in good faith by an authorized officer of the Owner Trustee so
long as the same will not constitute willful misconduct or negligence;

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

     (c) no provision of this Agreement or any other Transaction Document shall
require the Trust Company to expend or risk its personal 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 Trust Company 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 of this Agreement, under no circumstances shall
the Trust Company 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 Trust Company 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
signatures on the Certificate of Trust and the certificate of authentication on
the Certificates, and the Trust Company 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 Trust Company shall not be liable for the default or misconduct of
the Transferor, the Owner, the Servicer or the Indenture Trustee under any of
the Transaction Documents or otherwise, and the Trust Company shall have no
obligation or liability to perform the obligations of the Trust under the
Transaction Documents that are required to be performed by the Indenture Trustee
under the Indenture or the Servicer under the Transfer and Servicing Agreement;

     (g) the Trust Company 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 Trust Company
security or indemnity satisfactory to it against the costs, expenses and
liabilities that may be incurred by the Trust Company

                                       15

<PAGE>

therein or thereby. The right of the Trust Company 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

     (h) Notwithstanding anything contained herein to the contrary, the Trust
Company 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 Trust
Company; (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 Trust Company 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 Trust Company 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 this Agreement results in
the consequences described in clauses (i), (ii) and (iii) of the preceding
sentence. In the event that said counsel advises the Trust Company 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 with respect to the Trust or the Trust Estate.

     Section 6.03. Representations and Warranties. The Trust Company hereby
represents and warrants to the Transferor that:

     (a) It is a 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 Trust Company or any judgment or order binding on it, or
constitute any default under its charter documents or by-laws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound.

     (d) The Trust Company complies with all of the requirements of Chapter 38,
Title 12 of the Delaware Code relating to the qualification of a trustee of a
Delaware statutory trust.

     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

                                       16

<PAGE>

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 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 trust 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 trust hereunder, the 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 the Trust Company's 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
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 Transferor, the Servicer and the Indenture Trustee in banking
transactions with the same rights as it would have if it were not Owner Trustee.

                                       17

<PAGE>

     Section 6.08. Payments from 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.

                               [End of Article VI]

                                       18

<PAGE>

                                   ARTICLE VII

                          COMPENSATION OF TRUST COMPANY

     Section 7.01. Trust Company'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 Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder; provided,
however, that the Owner Trustee'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 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 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 the Certificates or
Notes, any Indenture Supplement or any Series related document, the Trust
Company agrees in its individual capacity and in its capacity as Owner Trustee
for the Trust that all obligations of the Trust to the Trust Company,
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, Noteholder or Owner.

                              [End of Article VII]

                                       19

<PAGE>

                                  ARTICLE VIII

                         TERMINATION OF TRUST AGREEMENT

     Section 8.01. Termination of Trust Agreement.

     (a) The Trust shall dissolve and commence winding-up of its affairs upon
the earlier of (i) dissolution of the Trust in accordance with applicable law
and (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"). After satisfaction of liabilities of the Trust as
provided by Section 3808 of the Delaware Statutory Trust Act, any money or other
property held as part of the Trust Estate following such dissolution shall be
distributed to the Owner. 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 Owner'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), neither the Transferor nor
the Owner shall be entitled to revoke or terminate the Trust.

     (c) Upon completion of the winding up of the Trust in accordance with the
Delaware Statutory Trust Act, the Owner Trustee shall cause the Certificate of
Trust to be canceled by filing a certificate of cancellation with the Secretary
of State in accordance with the provisions of Section 3810 of the Delaware
Statutory Trust Act and thereupon the Trust and this Agreement (other than
Article X) shall terminate.

                              [End of Article VIII]

                                       20

<PAGE>

                                   ARTICLE IX

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

     Section 9.01. Eligibility Requirements for Owner Trustee. The Owner Trustee
shall at all times be a Person satisfying the provisions of Section 3807(a) of
the Delaware Statutory Trust Act 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 Person
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 Person 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 9.01, 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 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

                                       21

<PAGE>

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. Upon acceptance
of appointment by a successor Owner Trustee pursuant to this Section 9.03, such
successor Owner Trustee shall promptly file an amendment to the Certificate of
Trust with the Secretary of State identifying the name and principal place of
business of such successor Owner Trustee in the State of Delaware.

     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 Person into which the Owner Trustee may be
merged or converted or with which it may be consolidated, or any Person
resulting from any merger, conversion or consolidation to which the Owner
Trustee shall be a party, or any Person 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 Person 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 (a) the Owner Trustee shall mail notice of such
merger or consolidation to each Rating Agency and (b) the Owner Trustee shall
file any necessary amendments to the Certificate of Trust with the Secretary of
State.

     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:

          (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

                                       22

<PAGE>

     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.

                               [End of Article IX]

                                       23

<PAGE>

                                    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 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 more than 50% 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 Rating Agency
Condition is satisfied with respect to such amendment 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 more than 50% 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.

                                       24

<PAGE>

     Promptly after the execution of any amendment to the Certificate of Trust,
the Owner Trustee shall cause the filing of such amendment with the Secretary of
State.

     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 Owner. The Owner 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 Owner to and in its
undivided beneficial 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 (as such or in its
individual capacity), 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 The Bank
of New York, 101 Barclay Street, Floor 8 West, New York, New York 10286,
Attention: Asset-Backed Securities Unit; if to the Transferor, addressed to
Household Affinity Funding Corporation III, 1111 Town Center Drive, Las Vegas,
Nevada 89144, Attention: Manager-Compliance, if to Fitch, addressed to Fitch,
Inc., One State Street Plaza, New York, New York 10004, Attention: ABS
Surveillance, if to Moody's, addressed to Moody's Investors Service Inc., 99
Church Street, New York, New York 10007, Attention: ABS Monitoring Group, if to
Standard & Poor's, addressed to Standard & Poor's Ratings Group, 55 Water
Street, New York, New York 10041, Attention: Credit Card ABS 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.

     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 (as such or in its individual capacity) and its successors and the
Transferor and its successors and permitted assigns, all as herein provided. Any

                                       25

<PAGE>

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. To the fullest extent permitted
by applicable law, 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 interests in or obligations of the Servicer, 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. [Reserved].

         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.

         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.

                               [End of Article X]

                           [Signature Page to Follow]

                                       26

<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/ Anita E. Dallago
                                  ------------------------------------
                                   Name:  Anita E. Dallago
                                   Title: Senior Financial Services Officer

                               HOUSEHOLD AFFINITY FUNDING CORPORATION III,
                               as Transferor

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

                                       27

<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-__                                                                One Unit

               HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I
                             TRANSFEROR CERTIFICATE

                     THIS CERTIFICATE REPRESENTS AN INTEREST
                              IN THE ASSETS OF THE
               HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I

         Evidencing a beneficial 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 revolving credit accounts
transferred by Household Affinity Funding Corporation III (the "Transferor").

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

         This certifies that HOUSEHOLD AFFINITY FUNDING CORPORATION III is the
registered owner of an undivided beneficial interest in the assets of Household
Affinity Credit Card Master Note Trust I (the "Trust") subject to the lien of
the Noteholders pursuant to the Master Indenture, dated as of February 18, 2003
(as amended and supplemented, the "Indenture"), between the Trust and The Bank
of New York, as Indenture Trustee, and not allocated to the interest of any
Holder of a Supplemental Certificate pursuant to the Trust Agreement, dated as
of February 14, 2003 (as amended and supplemented, the "Trust Agreement"),
between Household Affinity Funding Corporation III, a Delaware corporation, as
Transferor, and Wilmington Trust Company. The corpus of the Trust consists of
(a) a portfolio of certain receivables (the "Receivables") existing in the
revolving credit accounts identified under the Transfer and Servicing Agreement,
dated as of February 18, 2003 (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 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 Interchange and 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,

                                       B-1

<PAGE>

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 Wilmington Trust
Company, as Owner Trustee (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 the Trust Agreement 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
generally from the purchase of merchandise and services and amounts advanced to
cardholders as cash advances and Finance Charge and Administrative 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 the 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 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.

                                       A-3

<PAGE>

                  This Certificate shall be construed in accordance with the
laws of the State of Delaware, without reference to its conflict of law
provisions and the obligations, rights and remedies of the Transferor shall be
determined in accordance with such laws.

                  IN WITNESS WHEREOF, the Trust has caused this Certificate to
be duly executed.

                                                 HOUSEHOLD AFFINITY CREDIT CARD
                                                 MASTER NOTE TRUST I

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

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

Dated:   [_________ __, ____]

                                       A-4

<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

                                                 By:
                                                     ---------------------------
                                                     Authorized Signatory

                                       A-5

<PAGE>

                                                                       EXHIBIT B

                             CERTIFICATE OF TRUST OF
               HOUSEHOLD AFFINITY CREDIT CARD MASTER NOTE TRUST I

         THIS Certificate of Trust of Household Affinity Credit Card Master Note
Trust I (the "Trust") has been duly executed and is being filed by Wilmington
Trust Company, a Delaware banking corporation, as owner trustee, to create a
statutory trust under the Delaware Statutory Trust Act (12 Del. C., (S) 3801 et
seq.).

         1. Name. The name of the statutory trust created hereby is Household
Affinity Credit Card Master Note Trust I.

         2. Delaware Trustee. The name and business address of the owner trustee
of the Trust in the State of Delaware are Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attention: Corporate Trust Administration.

         3. Effective Date. This Certificate of Trust shall be effective on
February 14, 2003.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate of
Trust in accordance with Section 3811(a) of the Delaware Statutory Trust Act.

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

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

                                       B-1

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