Document:

<PAGE>

                                                                     EXHIBIT 4.6
    ______________________________________________________________________

                        SPIEGEL CREDIT CORPORATION III,

                                    Seller,

                        FIRST CONSUMERS NATIONAL BANK,

                                   Servicer,

                                      and

                             THE BANK OF NEW YORK,

                                    Trustee

                 on behalf of the Collateral Certificateholder

    ______________________________________________________________________

                         COLLATERAL SERIES SUPPLEMENT

                         Dated as of December 1, 2000

                                      to

             AMENDED AND RESTATED POOLING AND SERVICING AGREEMENT

                         Dated as of December 13, 1994

    ______________________________________________________________________

                             SPIEGEL MASTER TRUST

    ______________________________________________________________________
<PAGE>

<TABLE>
<CAPTION>
                               TABLE OF CONTENTS

                                                                       Page
<S>                                                                    <C>
SECTION 1.  Designation.................................................. 1

SECTION 2.  Definitions.................................................. 1

SECTION 3.  Reassignment and Transfer Terms.............................. 2

SECTION 4.  Delivery and Payment for the Collateral Certificates......... 2

SECTION 5.  Form of Delivery of Collateral Certificates.................. 2

SECTION 6.  Article IV of Agreement...................................... 2

SECTION 7.  Series Pay Out Events and Events of Default;
            Servicer Defaults............................................ 3

SECTION 8.  Successors and Assigns....................................... 3

SECTION 9.  Modification to and Ratification of Agreement................ 3

SECTION 10. Counterparts................................................. 3

SECTION 11. Governing Law................................................ 3
</TABLE>

EXHIBITS

Exhibit A   Form of Collateral Certificate
Exhibit B   Form of New Receivables Purchase Agreement
<PAGE>

     COLLATERAL SERIES SUPPLEMENT dated as of December 1, 2000 (this "Series
Supplement"), among Spiegel Credit Corporation III, a Delaware corporation, as
Seller, First Consumers National Bank, a national banking association, as
Servicer, and The Bank of New York (as successor-in-interest to the corporate
trust administration of Harris Trust and Savings Bank), as Trustee under the
Amended and Restated Pooling and Servicing Agreement dated as of December 13,
1994 among Seller, the Servicer and the Trustee (the "Agreement").

     Section 6.12 of the Agreement provides, among other things, that Seller and
the Trustee may at any time and from time to time enter into a supplement to the
Agreement for the purpose of authorizing the delivery by Seller to the Trustee
for execution and authentication of one or more Series of Certificates.

     Pursuant to this Series Supplement, Seller shall create a new Series of
Investor Certificates and shall specify the Principal Terms thereof and add and
amend certain provisions of the Agreement.

     SECTION 1. Designation. There is hereby created a Series of Investor
                -----------
Certificates to be issued pursuant to the Agreement and this Series Supplement
to be known as the "Collateral Certificates". The Collateral Certificates will
be transferred by the Seller to Spiegel Credit Card Master Note Trust (the "Note
Trust") pursuant to a Transfer and Servicing Agreement dated as of December 1,
2000 among the Seller, the Servicer and the Note Trust. The Note Trust will
pledge the Collateral Certificates as collateral for one or more series of notes
(each, a "Note Series") to be issued by the Note Trust pursuant to a Master
Indenture dated as of December 1, 2000 between the Note Trust, and The Bank of
New York, as indenture trustee, and one or more supplements to the Master
Indenture (each, an "Indenture Supplement" and, together with the Master
Indenture referred to above, the "Indenture"). The portions of the Collateral
Certificates primarily securing each Note Series shall be treated as separate
Series (each, a "Collateral Series") under the Agreement and this Series
Supplement. Certain terms pertaining to each Collateral Series will be defined
in the applicable Indenture Supplements (but are hereby incorporated by
reference into this Series Supplement). Unless and until the Trust has been
terminated as permitted by Section 3(b) of this Series Supplement: (a) each
Indenture Supplement executed and delivered by the Note Trust shall be deemed to
supplement this Series Supplement; (b) a new Collateral Series shall be deemed
to be issued upon the issuance of each Note Series and shall have the same
designation (e.g., Series 2000-A) as the related Note Series; (c) the amounts
payable as interest and principal on such Collateral Series shall equal the
aggregate of the amounts payable on the related Note Series and shall be payable
at the times and in the amounts specified for such Note Series, (d) all amounts
available and applied as credit enhancement with respect to such Note Series
shall be deemed to be available and applied as credit enhancement with respect
to such Collateral Series; (e) all amounts payable to the Seller pursuant to the
related Indenture Supplement shall be deemed to be payable to the Seller
pursuant to this Series Supplement; and (f) the conditions defined in Section
6.12 of the Agreement for issuance of new Series must be satisfied in connection
with each issuance of a Note Series.
<PAGE>

          SECTION 2. Definitions. If any term or provision contained herein
                     -----------
shall conflict with or be inconsistent with any provision contained in the
Agreement, the terms and provisions of this Series Supplement shall govern. All
Article, Section or subsection references herein shall mean Article, Section or
subsections of the Agreement, as amended or supplemented by this Series
Supplement, except as otherwise provided herein. All capitalized terms not
otherwise defined herein are used herein as defined in the Agreement. Each
capitalized term defined herein shall relate only to the Collateral Certificates
and no other Series of Certificates issued by the Trust.

     "Base Rate" is defined for each Collateral Series in the related Indenture
Supplement.

     "Certificate" means a Collateral Certificate.

     "Certificateholder" means the holder of record of any Certificate.

     "Certificate Rate" means, for any Collateral Series, the average of the
interest rates applicable to the notes in the related Note Series, weighted by
the outstanding principal amount of the applicable classes of notes.

     "Closing Date" means, for any Collateral Series, the "Closing Date" for the
related Note Series, as defined in the related Indenture Supplement.

     "Collateral Certificates" is defined in Section 1 of this Series
Supplement.

     "Collateral Series" is defined in Section 1 of this Series Supplement.

     "Enhancement Provider" if applicable to any Collateral Series will be the
"Enhancement Provider" defined in the related Indenture Supplement.

     "Finance Charge Shortfall" means, for any Collateral Series, the Finance
Charge Shortfall for the related Note Series, as defined in the related
Indenture Supplement.

     "Indenture" is defined in Section 1 of this Series Supplement.

     "Indenture Supplement" is defined in Section 1 of this Series Supplement.

     "Initial Investor Amount" means, for any Collateral Series, the "Initial
Collateral Amount" of the related Note Series, as defined in the related
Indenture Supplement.

     "Investor Amount" means, for any Collateral Series, the "Collateral Amount"
of the related Note Series, as defined in the related Indenture Supplement.

     "Minimum Seller Percentage" is defined for each Collateral Series in the
related Indenture Supplement.

                                      -2-
<PAGE>

     "Note Series" is defined in Section 1 of this Series Supplement.

     "Note Trust" is defined in Section 1 of this Series Supplement.

     "Principal Shortfall" means, for any Collateral Series, the Principal
Shortfall for the related Note Series, as defined in the related Indenture
Supplement.

     "Rating Agency" means, for any Collateral Series, the rating agencies for
the related Note Series, as defined in the related Indenture Supplement.

     "Series Accounts" means, for any Collateral Series, any bank accounts
established for the benefit of the related Note Series, as defined in the
related Indenture Supplement.

     "Series Servicing Fee Percentage" is defined for each Collateral Series in
the related Indenture Supplement.

     "Series Termination Date" means, for any Collateral Series, the final
maturity date for the related Note Series defined in the related Indenture
Supplement.

          SECTION 3. Reassignment and Transfer Terms.
                     -------------------------------

          (a) If the Servicer purchases, redeems or prepays any Note Series
pursuant to a clean-up call under the related Indenture Supplement, then the
related Collateral Series shall be deemed to have been retired.

          (b) Once each Series of Certificates issued under the Agreement has
been retired, other than the Collateral Series and any other Series the
requisite holders of which have consented to the following transactions, the
holder of the Exchangeable Seller Certificate shall have the option to transfer
the Exchangeable Seller Certificate to the Note Trust, upon which transfer the
Trust shall terminate, and all of the Trust Assets shall be distributed to the
Note Trust, as holder of all of the beneficial interests in the Trust; provided
                                                                       --------
that no such termination may occur unless contemporaneously with such
termination the parties to the Receivables Purchase Agreement enter into a new
receivables purchase agreement substantially in the form of Exhibit B.
                                                            ---------
          SECTION 4. Delivery and Payment for the Collateral Certificates. The
                     ----------------------------------------------------
Trustee shall deliver the Collateral Certificates when authenticated in
accordance with Section 6.2.

          SECTION 5. Form of Delivery of Collateral Certificates.
                     -------------------------------------------
          (a) The Collateral Certificates shall be delivered as Definitive
Certificates.

                                      -3-
<PAGE>

          (b) For purposes of voting with respect to any consent or other matter
under the Agreement or this Series Supplement, each class of notes included in
any Note Series shall be deemed to be a Class of Certificates in the related
Collateral Series, and the provisions for voting by beneficial owners of such
notes specified in the Indenture shall apply mutatis mutandis to voting under
the Agreement and this Series Supplement.

          SECTION 6. Article IV of Agreement. (a) Sections 4.1 and 4.2 and
                     -----------------------
subsections 4.3(b) through (j) of the Agreement shall read in their entirety as
provided in the Agreement. Subsection 4.3(a) of the Agreement shall read in its
entirety as follows:

          (a) Collections. The Servicer shall, subject to subsections 4.2(d),
              -----------
4.3(c) and 4.3(f) and, with respect to any Series, the provisions of the related
Supplement, deposit all Collections in the Collection Account as promptly as
possible after the Date of Processing of such Collections, but in no event later
than the second Business Day following such Date of Processing.

          (b) The remainder of Article IV of the Agreement shall read in its
entirety as follows and shall be applicable only to the Collateral Certificates:

                                  ARTICLE IV

                       RIGHTS OF CERTIFICATEHOLDERS AND
                   ALLOCATION AND APPLICATION OF COLLECTIONS

          Section 4.1A Rights of Investor Certificateholders. The Collateral
                       -------------------------------------
Certificates shall represent Undivided Interests in the Trust, consisting of the
right to receive (a) the related Investor Percentage (as defined in the related
Indenture Supplement) of Collections, (b) funds on deposit in the Collection
Account and the Excess Funding Account allocable to the Collateral Certificates
and (c) Shared Principal Collections allocated to the Collateral Certificates in
accordance with subsection 4.3(g). Unless otherwise specified in the related
Indenture Supplement, each Collateral Series shall consist of a single Class and
shall not be senior or subordinated to any other Series. The Exchangeable Seller
Certificate shall represent the ownership interest in the Trust Assets not
allocated to the Collateral Certificates or any other Series outstanding;
provided, however, the ownership interest represented by the Exchangeable Seller
--------  -------
Certificate and any other Series outstanding shall not represent any interest in
the Collection Account or any other Series Account, except as specifically
provided in this Article IV.
                 ----------

     Section 4.4 Allocations. The Servicer shall, prior to the close of business
                 -----------
on the day any Collections are deposited in the Collection Account, allocate
from the Collection Account to the Collateral Series related to each Note Series
the amounts specified in the related Indenture Supplement, which shall be
deposited or otherwise applied as provided in such Indenture Supplement.

                                      -4-
<PAGE>

          SECTION 7.   Series Pay Out Events and Events of Default; Servicer
                       -----------------------------------------------------
Defaults. The Series Pay Out Events applicable to each Collateral Series shall
--------
be the Series Pay Out Events specified in the related Indenture Supplement, as
well as the Trust Pay Out Events specified in the Indenture. In addition, each
Note Series will have the benefit of applicable "Events of Default," as defined
in the Indenture. Upon the occurrence of an applicable Event of Default, the
Indenture Trustee shall have the right to foreclose upon a portion of the
Receivables, as defined (and subject to the limitations stated) in the Indenture
notwithstanding the continuing existence of the Trust. In addition, each
Servicer Default specified in the Master Indenture shall be an additional
Servicer Default for purposes of each Collateral Series.

          SECTION 9.   Successors and Assigns. This Series Supplement shall be
                       ----------------------
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

          SECTION 10.  Modification to and Ratification of Agreement. For
                       ---------------------------------------------
purposes of this Supplement and each Collateral Series:

          (a) Section 2.6(a) of the Agreement shall be deemed to read as
          follows:

               "(a)    If on any day either (i) the Aggregate Principal
          Receivables, plus the amount on deposit in the Principal Collections
          Subaccount (exclusive of any investment earnings on such amount) is
          less than the Minimum Aggregate Principal Receivables or (ii) the
          Seller Amount is less than the Minimum Seller Amount, either Seller or
          the Servicer (whichever shall first become aware of same) promptly
          shall give the Owner Trustee written notice thereof, and as soon as
          practicable (but in no event later than 10 days thereafter) Seller
          shall designate additional Eligible Accounts ("Additional Accounts")
                                                         -------------------
          to be included as Accounts and shall transfer the Receivables in such
          Additional Accounts to the Issuer, in a sufficient amount so that (x)
          the Aggregate Principal Receivables plus the amount on deposit in the
          Principal Collections Subaccount (exclusive of any investment earnings
          on such amount) would at least equal the Minimum Aggregate Principal
          Receivables and (ii) the Seller Amount would at least equal the
          Minimum Seller Amount on such day, if the Receivables from such
          Additional Accounts had been transferred to the Issuer on such day.";
          and

          (b) Section 2.6(c)(ii) of the Agreement shall be deemed to read as
          follows:

               "(ii)   Seller (A) shall transfer to the Trust Receivables only
          in Eligible Accounts, and (B) if such designation of Additional
          Accounts is made pursuant to Section 2.6(b) or (e) and if the addition
                                       --------------    ---
          of such Additional Accounts

                       (1)    would cause the quotient (the "Annual Quotient")
               of (x) the sum of the Annual Net Account Additions (calculated
               without subtracting Removed Accounts) after giving effect to such
               addition plus the related Base Amount divided by (y) the related
               Base Amount to exceed 1.20, or

                                      -5-
<PAGE>

                       (2)    would cause the quotient (the "Quarterly
               Quotient") of (x) the sum of the Quarterly Net Account Additions
               (calculated without subtracting Removed Accounts) after giving
               effect to such addition plus the related Base Amount divided by
               (y) the related Base Amount to exceed 1.15;

          in either case, deliver a letter from each Rating Agency to the
          Trustee by the Addition Date confirming that the Rating Agency
          Condition has been satisfied with respect to the addition of such
          Additional Accounts;" and

          (c) Section 2.6(f) is deleted from the Agreement;

          (d) the following new clause (d) is added at the end of Section
     2.7(b)(ii) of the Agreement:

          "and (d) Accounts (or administratively convenient groups of Accounts,
          such as billing cycles) were chosen for removal randomly or otherwise
          not on a basis intended to select particular accounts or groups of
          accounts for any reason other than administrative convenience;" and

          (e) notwithstanding anything to the contrary in Section 3.2 of the
     Agreement, the servicing fee payable with respect to each Note Series and
     the related Collateral Series shall be solely as set forth in the related
     Indenture Supplement;

          (f) notwithstanding the penultimate sentence of Section 4.2(f) of the
     Agreement, no Note Series shall be entitled to receive as Shared Principal
     Collections any amounts otherwise allocable to the Exchangeable Seller
     Certificate and not required to be deposited in the Excess Funding Account;

          (g) the following language is deleted from Section 8.2(i) of the
     Agreement:

          "To the extent that any right, covenant or obligation of the Servicer,
          as applicable hereunder, is inapplicable to the successor entity, such
          successor entity shall be subject to such covenant or obligation, or
          benefit from such right, as would apply, to the extent practicable, to
          such successor entity;" and

          (h) Section 12.2(b) of the Agreement shall be deemed to read as
          follows:

               "(b)    If on the Determination Date in the second month
               immediately preceding the month in which the Series Termination
               Date occurs (after giving effect to all transfers, withdrawals,
               deposits and drawings to occur on the next Transfer Date and the
               payment of principal on the notes in the related Note Series to
               be made on the related Distribution Date pursuant to the
               Indenture), the outstanding principal amount of the notes in the
               related

                                      -6-
<PAGE>

               Note Series would be greater than zero, the Servicer shall sell,
               dispose of, or otherwise liquidate, in a commercially reasonable
               manner and on commercially reasonable terms (which shall include
               the solicitation of competitive bids from Persons who are not
               Affiliates of Seller), within 30 days of such Determination Date,
               an amount of Receivables equal to (i) 110% of the Investor Amount
               with respect to such Series determined as of the date of such
               sale, disposition or liquidation provided, however, that the
               Servicer shall give Seller at least 10 days advance written
               notice of such sale, disposition or other liquidation. Seller
               shall have the option, exercisable at any time after the Servicer
               has obtained an offer from any Person that is not an Affiliate of
               Seller and prior to the consummation of such sale, disposition or
               liquidation by giving notice of the exercise thereof to the
               Servicer, to purchase such Receivables for cash (payable in
               immediately payable funds on the Series Termination Date) for the
               lesser of (i) 100% of the amount of such Receivables, or (ii) the
               highest price offered therefor pursuant to such proposed sale,
               disposition or other liquidation. The proceeds received upon the
               sale, disposition or other liquidation of such Receivables in an
               amount up to (i) the outstanding principal amount of the notes in
               the related Note Series on the Series Termination Date, plus (ii)
               unpaid interest thereon as of the Series Termination Date with
               respect to such Series, less (iii) amounts on deposit on such
               date in the Series Accounts with respect to such Series, shall be
               distributed to the Holder of the Collateral Certificate for the
               benefit of such Series on the related Series Termination Date.
               Notwithstanding Sections 12.2(c) and 12.3, such funds shall be
               distributed in accordance with the terms of the related Indenture
               Supplement, and the Holder of the Collateral Certificate will not
               be required to present the Collateral Certificate in order to
               receive final payment with respect to any Collateral Series,
               whether pursuant to this Section 12.2 or otherwise. Proceeds
               received in excess of the amount to be deposited as aforesaid
               shall be treated as Collections on the Receivables and shall be
               allocated and deposited in accordance with the provisions of
               Article IV; provided that the Servicer shall determine
               conclusively the amount of such proceeds which are allocable to
               Finance Charge Receivables and the amount of such proceeds which
               are allocable to Principal Receivables.".

     In addition, to the extent that the terms of this Series Supplement
(directly or as supplemented by any Indenture Supplement) are deemed to be
inconsistent with the terms of the Agreement, this Series Supplement shall be
deemed to modify or amend the terms of the Agreement solely as applied to each
Collateral Series affected by any such inconsistency, as permitted by Section
6.12(c) of the Agreement.  Otherwise, as supplemented by this Series Supplement
(and the various Indenture Supplements executed form time to time), the
Agreement is in all respects ratified and confirmed and

                                      -7-
<PAGE>

the Agreement as so amended and supplemented by this Series Supplement shall be
read, taken and construed as one and the same instrument.

          SECTION 11.  Counterparts. This Series Supplement may be executed in
                       ------------
any number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the
same instrument.

          SECTION 12.  Certain Calculations. In accordance with Section 1.3 of
                       --------------------                     -----------
the Agreement, the Servicer is adopting the following method of determining the
amount of Finance Charge Receivables, which method is, in the good faith
judgment of the Servicer, designed to more accurately reflect the portions of
Receivables and Collections constituting Finance Charge Receivables:

               (i)   At the close of business on each Cycle Billing Date for any
     Cycle of which any Accounts are included in the Trust, the amount of
     Finance Charge Receivables of all Accounts in such Cycle shall be equal to
     the result of (A) the amount of Finance Charges charged to all Accounts in
     such Cycle on such date minus (B) the amount of Finance Charge Receivables
     on all Accounts in such Billing Cycle that have been charged off since the
     close of business on the preceding Cycle Billing Date. As of the end of
     each Monthly Period, the amount of Finance Charge Receivables for all
     Accounts shall equal (X) the sum of the amounts calculated pursuant to the
     preceding sentence for each Cycle of which Accounts are included in the
     Trust during that Monthly Period plus (Y) the Carry-Over Finance Charge
     Amount.

               (ii)  For each Business Day in each Monthly Period, the amount of
     Collections allocated to Finance Charge Receivables for all Accounts shall
     be all Collections available for allocation on that Business Day up to an
     amount equal to the quotient of the result determined pursuant to clause
     (i) above as of the end of the immediately preceding Monthly Period divided
     by the number of Business Days in such present Monthly Period; provided,
                                                                    --------
     however, that (A) the amount of Collections allocated to Finance Charge
     -------
     Receivables for all Accounts on the first Business Day of each Monthly
     Period shall equal the product of two times such quotient, (B) subject to
     clause (C) below, the amount of Collections allocated to Finance Charge
     Receivables for all Accounts on the last Business Day of each Monthly
     Period shall equal zero and (C) to the extent that the total Collections
     available for allocation on any Business Day (other than the last Business
     Day of a Monthly Period) is less than the amount that is to be allocated to
     Collections of Finance Charge Receivables on that Business Day, then the
     deficit shall be added to the amount of Collections that will be allocated
     to Finance Charge Receivables on the next Business Day.

               (iii) If, at the close of business on the last Business Day of
     any

                                      -8-
<PAGE>

     Monthly Period, the amount of Collections allocated to Finance Charge
     Receivables for all Accounts during such Monthly Period is less than the
     amount of Finance Charge Receivables for all Accounts calculated pursuant
     to clause (i) as of the end of the next preceding Monthly Period, then such
     deficit shall be the "Carry-Over Finance Charge Amount" and shall be added
     to the amount of Finance Charges Receivables as of the end of the then
     current Monthly Period pursuant to clause (i). The Carry-Over Finance
     Charge Amount shall be deemed to be zero as of the end of the November 2000
     Monthly Period.

          SECTION 13.   Governing Law. This Series Supplement shall be construed
                        -------------
in accordance with the laws of the State of Illinois, 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.

                                      -9-
<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Collateral Series
Supplement to be duly executed by their respective officers as of the day and
year first above written.

                             SPIEGEL CREDIT CORPORATION III

                             Name:  /s/ John R. Steele
                             Title: Treasurer

                             FIRST CONSUMERS NATIONAL BANK

                             Name:  /s/ John R. Steele
                             Title: Treasurer

                             THE BANK OF NEW YORK
                             (successor-in-interest to the corporate trust
                             administration of Harris Trust and Savings Bank),
                             as Trustee

                             Name:  /s/ Cassandra Shedd
                             Title: Assistant Treasurer

                                     -10-
<PAGE>

                                   EXHIBIT A
                                      to
                         COLLATERAL SERIES SUPPLEMENT

                        FORM OF COLLATERAL CERTIFICATE

No.________________                                             $_____________

                             SPIEGEL MASTER TRUST
                            COLLATERAL CERTIFICATE

Evidencing an undivided interest in a trust originated by Spiegel Credit
Corporation III ("SCC"), the corpus of which consists of a portfolio of
receivables created under charge accounts originated by First Consumers National
Bank ("FCNB") or Spiegel, Inc. ("Spiegel") and other assets and interests
constituting the trust under the Pooling and Servicing Agreement described
below.

                     (Not an interest in or obligation of
                             FCNB, SCC or Spiegel)

         This certifies that SPIEGEL CREDIT CARD MASTER NOTE TRUST (the
"Certificateholder") is the registered owner of an undivided interest in a trust
(the "Trust"), the corpus of which consists of a portfolio of receivables (the
"Receivables") now existing or hereafter created under selected charge accounts
originated by FCNB or Spiegel and acquired by SCC from FCNB and Spiegel
Acceptance Corporation ("SAC") pursuant to a Receivables Purchase Agreement,
dated as of September 20, 1994, among SCC, FCNB and SAC, as amended, and
transferred by SCC to the Trust, all monies due or to become due with respect
thereto and the other assets and interests constituting the Trust pursuant to an
Amended and Restated Pooling and Servicing Agreement, dated as of December 13,
1994, as amended by the Series 1995-A Supplement thereto and the Transfer
Agreement No. 1 of Receivables in Additional Accounts, dated March 16, 1995 and
as supplemented by the Collateral Series Supplement thereto dated December 1,
2000 (collectively, the "Pooling and Servicing Agreement"), among SCC, FCNB and
The Bank of New York (as successor-in-interest to the corporate trust
administration of Harris Trust and Savings Bank), as trustee.

         THIS COLLATERAL CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN
INTEREST IN, FCNB, SCC OR SPIEGEL, AND NONE OF THIS CERTIFICATE, THE RECEIVABLES
AND THE ACCOUNTS IS INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL
AGENCY. THIS COLLATERAL CERTIFICATE IS LIMITED IN RIGHT OF PAYMENT TO CERTAIN
COLLECTIONS RESPECTING THE RECEIVABLES, ALL AS MORE SPECIFICALLY SET FORTH IN
THE POOLING AND SERVICING AGREEMENT.
<PAGE>

         To the extent not defined herein, capitalized terms used herein have
the meanings assigned in the Pooling and Servicing Agreement. This Collateral
Certificate is issued under and is subject to the terms, provisions and
conditions of the Pooling and Servicing Agreement, to which Pooling and
Servicing Agreement, as amended from time to time, the Certificateholder by
virtue of its acceptance hereof assents and by which the Certificateholder is
bound.

         This Certificate is one of a series of Certificates entitled "Spiegel
Master Trust Collateral Certificates" (the "Collateral Certificates"), which
represents an undivided interest in the Trust.

         Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual or facsimile signature of a duly authorized
signatory, this Certificate shall not be entitled to any benefit under the
Pooling and Servicing Agreement or be valid for any purpose.

                                      -2-
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Collateral Certificate
to be duly executed under its official seal.

                              THE BANK OF NEW YORK,
                             (successor-in-interest to the corporate trust
                             administration of Harris Trust an Savings Bank),
                             as Trustee

                             By:
                                _______________________________________________
                                   Vice President

[Seal]

Attested to:

By:
   _______________________
     Assistant Secretary

Date:

                                      -3-
<PAGE>

                    Trustee's Certificate of Authentication

         This is one of the Collateral Certificates referred to in the within-
mentioned Pooling and Servicing Agreement.

                             THE BANK OF NEW YORK,
                             (successor-in-interest to the corporate trust
                             administration of Harris Trust and Savings Bank),
                             as Trustee

                             By:
                                _______________________________________________
                                   Authorized Officer

<PAGE>

                                      Exhibit B to Collateral Series Supplement
                                      ---------

                         RECEIVABLES PURCHASE AGREEMENT

                                      among

                         SPIEGEL CREDIT CORPORATION III,

                                     Buyer,

                                       and

                          FIRST CONSUMERS NATIONAL BANK

                                       and

                         SPIEGEL ACCEPTANCE CORPORATION,

                                  RPA Sellers,

                          Dated as of ___________, 20__
<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                           Page
<S>                                                                                        <C>
ARTICLE I

DEFINITIONS.............................................................................    -1-

Section 1.1.    Definitions.............................................................    -1-
Section 1.2.    Other Definitional Provisions...........................................    -1-

ARTICLE II

PURCHASE AND CONVEYANCE OF RECEIVABLES..................................................    -2-

Section 2.1.    Purchase................................................................    -2-
Section 2.2.    Addition of Additional Accounts.........................................    -3-
Section 2.3.    Sellers of Receivables..................................................    -4-

ARTICLE III

CONSIDERATION AND PAYMENT...............................................................    -5-

Section 3.1.    Purchase Price..........................................................    -5-
Section 3.2.    Payment of Purchase Price...............................................    -5-
Section 3.3.    Adjustments to Purchase Price...........................................    -5-
Section 3.4.    Settlement..............................................................    -5-

ARTICLE IV

REPRESENTATIONS AND WARRANTIES..........................................................    -6-

Section 4.1.    RPA Seller's Representations and Warranties.............................    -6-
Section 4.2.    RPA Sellers' Representations and Warranties Regarding Additional
                  Accounts..............................................................    -9-
Section 4.3.    Representations and Warranties of Buyer.................................    -10-
Section 4.4.    Other Matters...........................................................    -12-

ARTICLE V

COVENANTS OF RPA SELLERS AND BUYER......................................................    -12-

Section 5.1.    RPA Seller Covenants....................................................    -12-
Section 5.2.    Buyer Covenants Regarding Nondisclosure; Inspection.....................    -16-
</TABLE>
                                       i
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                         <C>
ARTICLE VI

REPURCHASE OBLIGATION...................................................................    -16-

Section 6.1.    Mandatory Repurchase....................................................    -16-
Section 6.2.    Optional Repurchases....................................................    -18-
Section 6.3.    Conveyance of Repurchased Receivables...................................    -18-
Section 6.4.    Sole Remedy.............................................................    -19-
Section 6.5.    Selection of Removed Accounts...........................................    -19-
Section 6.6.    Assignment of Repurchase Rights and Obligations.........................    -19-

ARTICLE VII

CONDITIONS PRECEDENT....................................................................    -19-

Section 7.1.    Conditions to Buyer's Obligations Regarding Initial Receivables.........    -19-
Section 7.2.    Conditions to Buyer's Obligations Regarding Supplemental Conveyances....    -20-
Section 7.3.    Conditions Precedent to RPA Sellers' Obligations........................    -21-

ARTICLE VIII

TERM & TERMINATION......................................................................    -22-

Section 8.1.    Term....................................................................    -22-
Section 8.2.    Effect of Termination...................................................    -23-

ARTICLE IX

MISCELLANEOUS PROVISIONS................................................................    -23-

Section 9.1.    Amendment...............................................................    -23-
Section 9.2.    Governing Law...........................................................    -23-
Section 9.3.    Notices.................................................................    -23-
Section 9.4.    Severability of Provisions..............................................    -24-
Section 9.5.    Assignment..............................................................    -24-
Section 9.6.    Acknowledgment and Agreement of RPA Sellers.............................    -24-
Section 9.7.    Further Assurances......................................................    -24-
Section 9.8.    No Waiver; Cumulative Remedies..........................................    -24-
Section 9.9.    Counterparts............................................................    -25-
Section 9.10.   Binding Effect; Third-Party Beneficiaries...............................    -25-
Section 9.11.   Merger and Integration..................................................    -25-
Section 9.12.   Headings................................................................    -25-
Section 9.13.   Schedules and Exhibits..................................................    -25-
</TABLE>
                                      ii
<PAGE>

     RECEIVABLES PURCHASE AGREEMENT, dated as of [________], 20__, (this
"Agreement") among FIRST CONSUMERS NATIONAL BANK, a national banking association
 ---------
("FCNB"), SPIEGEL ACCEPTANCE CORPORATION, a Delaware corporation ("SAC"; FCNB
  ----                                                             ---
and SAC are collectively referred to herein as the "RPA Sellers"), and SPIEGEL
                                                    -----------
CREDIT CORPORATION III, a Delaware corporation ("Buyer").
                                                 -----

                             W I T N E S S E T H:
                             - - - - - - - - - -

     WHEREAS, Buyer desires to purchase from time to time certain Receivables
arising under certain specified preferred charge accounts of FCNB; and

     WHEREAS, RPA Sellers desire to sell from time to time and assign such
Receivables to Buyer upon the terms and conditions hereinafter set forth; and

     WHEREAS, it is contemplated that the Receivables purchased hereunder will
be transferred by Buyer to the Issuer in connection with the issuance of certain
Notes; and

     WHEREAS, Buyer will grant to the Trustee a security interest in Buyer's
rights relating to the Receivables under this Agreement, and RPA Sellers agree
that the covenants and agreements made by RPA Sellers herein shall also be for
the benefit of the Owner Trustee, the Indenture Trustee and all holders of the
Notes;

     NOW, THEREFORE, it is hereby agreed among the parties hereto as follows:

                                   ARTICLE I

                                  DEFINITIONS

     Section 1.1. Definitions. Capitalized terms used herein and not otherwise
                  -----------
defined herein are defined in Annex A to the Master Indenture, dated as of
                              -------
December 1, 2000, between Spiegel Credit Card Master Note Trust and The Bank of
New York (the "Indenture").
               ---------

     Section 1.2. Other Definitional Provisions. All terms defined directly or
                  -----------------------------
by reference in this Agreement shall have the defined meanings when used in any
certificate or other document delivered pursuant hereto unless otherwise defined
therein. For purposes of this Agreement and all such certificates and other
documents, unless the context otherwise requires: (a) accounting terms not
otherwise defined in this Agreement, and accounting terms partly defined in this
Agreement to the extent not defined, shall have the respective meanings given to
them under generally accepted accounting principles; (b) terms defined in
Article 9 of the UCC as in effect in the State of Illinois and not otherwise
defined in this Agreement are
<PAGE>

used as defined in that Article; (c) any reference to each Rating Agency shall
only apply to any specific rating agency if such rating agency is then rating
any outstanding Series; (d) references to any amount as on deposit or
outstanding on any particular date means such amount at the close of business on
such day; (e) the words "hereof," "herein" and "hereunder" and words of similar
import refer to this Agreement (or the certificate or other document in which
they are used) as a whole and not to any particular provision of this Agreement
(or such certificate or document); (f) references to any Section, Schedule or
Exhibit are references to Sections, Schedules and Exhibits in or to this
Agreement (or the certificate or other document in which the reference is made),
and references to any paragraph, Section, clause or other subdivision within any
Section or definition refer to such paragraph, subsection, clause or other
subdivision of such Section or definition; (g) the term "including" means
"including without limitation"; (h) references to any law or regulation refer to
that law or regulation as amended from time to time and include any successor
law or regulation; (i) references to any Person include that Person's successors
and assigns; and (j) headings are for purposes of reference only and shall not
otherwise affect the meaning or interpretation of any provision hereof.

                                  ARTICLE II

                    PURCHASE AND CONVEYANCE OF RECEIVABLES

     Section 2.1. Purchase. (a) Subject to and upon the terms and conditions
                  --------
hereinafter set forth, each RPA Seller (i) hereby sells, transfers, conveys, and
assigns to Buyer, without recourse, all of such RPA Seller's right, title, and
interest in, to, and under the Receivables existing at the opening of business
on the SMT Termination Date (excluding Receivables in respect of Defaulted
Accounts), and thereafter created in respect of each Account listed on Schedule
                                                                       --------
1 identified by account number and by Receivable balance as of the SMT
-
Termination Date (the "Accounts"), together with all monies due or to become due
                       --------
with respect thereto (including all Finance Charge Receivables), all
Collections, Recoveries and other proceeds thereof and Insurance Proceeds
relating thereto, and (ii) subject to the provisions of Section 2.2, on each
                                                        -----------
Addition Date each RPA Seller shall sell, transfer, convey and assign to Buyer,
without recourse, all of such RPA Seller's rights, titles, and interests in, to,
and under the Receivables then existing or thereafter created in respect of each
Additional Account designated in a Supplemental Conveyance effective on the
Addition Date therefor, together with all monies due or to become due with
respect thereto (including all Finance Charge Receivables), all Collections,
Recoveries and other proceeds thereof and Insurance Proceeds relating thereto.

     (b)  In connection with such sale and conveyance, each RPA Seller shall, at
its own expense, on or prior to the SMT Termination Date (i) indicate or cause
to be indicated in its computer files relating to the Receivables that
Receivables created in connection with the Accounts have been sold to Buyer in
accordance with this

                                      -2-
<PAGE>

Agreement and transferred to the Issuer pursuant to the Servicing Agreement for
the benefit of the Noteholders and (ii) deliver or cause to be delivered to
Buyer (or to the Trustee, if Buyer so directs) a computer file or microfiche
list containing a true and complete list of all such Accounts, identified by
account number and by the Receivables balance as of the SMT Termination Date.

     (c)  In connection with such sale and conveyance, each RPA Seller agrees
(i) to record and file, at its own expense, any financing statement for the
purchase of accounts (as defined in Section 9-106 of the UCC as in effect in any
state where such RPA Seller's chief executive offices or books and records
relating to the Receivables are located) with respect to the Receivables now
existing and hereafter created in respect of each Account (including Receivables
in Additional Accounts), meeting the requirements of applicable state law in
such manner and in such jurisdictions as are necessary to perfect the sale of
the Receivables from such RPA Seller to Buyer, and (ii) to deliver a file-
stamped copy of such financing statements or other evidence of such filings
(which may, for purposes of this Section 2.1, consist of telephone confirmations
                                 -----------
of such filings) to Buyer (or to the Trustee, if Buyer so directs) on or prior
to the SMT Termination Date.

     (d)  On the SMT Termination Date, RPA Sellers shall deposit in the
Collection Account an amount equal to the amount that Buyer is required to
deposit therein pursuant to Section 8.4 of the Indenture.
                            -----------

     Section 2.2. Addition of Additional Accounts. (a) If from time to time,
                  -------------------------------
Buyer becomes obligated to designate Additional Accounts pursuant to Section
                                                                     -------
2.6(a) of the Servicing Agreement (or any other provision thereof calling for
-----
compliance with the procedures set forth in such Section 2.6(a)), then Buyer
                                                 --------------
shall give RPA Sellers written notice thereof on or before the Notice Date prior
to the Addition Date therefor and RPA Sellers shall on or before the Addition
Date designate sufficient Eligible Accounts to be included as Additional
Accounts so that after the inclusion thereof Buyer will be in compliance with
the requirements of said Section 2.6(a). Additionally, subject to the
                         -------------
limitations, if any, on Buyer's ability to add Additional Accounts under Section
                                                                         -------
2.6(b) of the Servicing Agreement, from time to time Eligible Accounts may be
-----
designated to be included as Additional Accounts, upon the mutual agreement of
Buyer and RPA Sellers. In either event, RPA Sellers shall have responsibility
for selecting the Additional Accounts and shall on or prior to the Addition Date
therefore execute and deliver a Supplemental Conveyance identifying the
Additional Accounts by account number and Receivables balance and Principal
Receivables balance as of the Addition Date, which Supplemental Conveyance shall
be effective upon receipt by Buyer.

     (b)  On or before each Addition Date with respect to Additional Accounts
added pursuant to Section 2.2(a), FCNB (i) shall indicate or cause to be
                  -------------
indicated in its books and records and in the computer files of the Receivables
that the

                                      -3-
<PAGE>

Receivables created in connection with such Additional Accounts have been sold
to Buyer in accordance with this Agreement and transferred by Buyer to the
Issuer pursuant to the Servicing Agreement, and (ii) shall deliver or cause to
be delivered to Buyer a computer file or microfiche list containing a true and
complete list of all Additional Accounts designated in the respective
Supplemental Conveyance or, if Buyer shall so direct, such computer file or
microfiche list shall be delivered to the Trustee pursuant to the Servicing
Agreement. FCNB's failure to deliver or cause to be delivered the list prior to
termination shall not be deemed to render such transfer executory or
uncompleted.

     (c)  At any time that Receivables in an Eligible Account are required to be
transferred to the Issuer pursuant to Section 2.6(e) of the Servicing Agreement,
                                      -------------
such Eligible Account shall, until notice from FCNB or Buyer to the other
parties hereto to the contrary, automatically be designated to be included as an
Account effective as of the date specified in Section 2.6(e) of the Servicing
                                              -------------
Agreement. FCNB shall on or before five Business Days after the first day of
each calendar month next succeeding the Monthly Period of such conveyance
execute a Supplemental Conveyance solely for the purposes of confirming the
transfer and assignment of such included Accounts under this Section 2.2(c) and
                                                             -------------
identifying all such included Accounts so designated during the preceding
Monthly Period, by account number and the aggregate amount of the Receivables
and the aggregate amount of Principal Receivables in such included Accounts as
of such fifth Business Day.

     (d)  On or before five Business Days after the first day of the Monthly
Period next succeeding the calendar month in which Accounts were included
pursuant to Section 2.2(c), FCNB (i) shall indicate or cause to be indicated in
            -------------
its books and records and in the computer files of the Receivables that the
Receivables created in connection with such included Accounts have been sold to
Buyer in accordance with this Agreement and transferred by Buyer to the Issuer
pursuant to the Servicing Agreement and (ii) shall deliver or cause to be
delivered to Buyer a computer file or microfiche list containing a true and
complete list of all such included Accounts identified in the respective
Supplemental Conveyance, or, if Buyer shall so direct, such computer file or
microfiche list shall be delivered to the Trustee pursuant to the Servicing
Agreement.

     Section 2.3. Sellers of Receivables. The parties acknowledge and agree that
                  ----------------------
Eligible Receivables arising under Additional Accounts prior to the applicable
Addition Date may on each Addition Date be transferred to Buyer hereunder by
either RPA Seller, as the RPA Sellers may agree between themselves without the
necessity of any consent or approval of any other Person, but that in any event
Eligible Receivables arising under Additional Accounts on or after the
applicable Addition Date and which are to be transferred to Buyer hereunder
shall be so transferred by FCNB.

                                      -4-
<PAGE>

                                  ARTICLE III

                           CONSIDERATION AND PAYMENT

     Section 3.1. Purchase Price. Except as provided in Section 3.2, the
                  --------------                        -----------
Purchase Price for all Receivables (including Receivables in Additional
Accounts) conveyed to the Buyer under this Agreement shall be a dollar amount
equal to the total recorded unpaid balance of such Receivables (including
Principal Receivables and Finance Charge Receivables) on the date conveyed to
Buyer hereunder.

     Section 3.2. Payment of Purchase Price. The Purchase Price for Receivables
                  -------------------------
shall be paid or provided for on the SMT Termination Date, each Addition Date
and each Settlement Date, as the case may be, in either of the following ways
(or any combination thereof) as Buyer and the appropriate RPA Seller may
mutually agree from time to time: (i) by payment in cash in immediately
available funds; or (ii) by the sale, transfer, and assignment from Buyer to the
appropriate RPA Seller of an undivided participation in the Seller Interest,
entitling such seller to receive a portion of all payments made to the holder of
the Seller Interest in the proportion that the principal amount of the purchased
Receivables not paid for in cash as provided in clause (i) above bears to the
                                                ----------
Principal Receivables evidenced by the Seller Interest. In the absence of any
agreement to the contrary, any portion of the Purchase Price not paid in cash on
the SMT Termination Date, any Addition Date (other than Addition Dates arising
under Section 2.2), or Settlement Date shall automatically be deemed the
      -----------
purchase of a participation in the Seller Interest in accordance with the terms
of this Section 3.2 in an amount equal to the unpaid portion of the Purchase
        -----------
Price payable on such date, which participation interest shall be evidenced by
the Settlement Statement as provided in Section 3.4.
                                        -----------

     Section 3.3. Adjustments to Purchase Price. The Purchase Price payable to
                  -----------------------------
each RPA Seller shall be adjusted on a monthly basis to reflect any Credit
Adjustment.

     Section 3.4. Settlement. On each Determination Date under the Servicing
                  ----------
Agreement (herein, a "Settlement Date"), FCNB shall deliver or cause to be
                      ---------------
delivered to Buyer a Settlement Statement in substantially the form of Exhibit
                                                                       -------
C, showing the aggregate amount of Receivables conveyed by each RPA Seller from
-
the previous Settlement Date (or from the SMT Termination Date in the case of
the first Settlement Date) to such date, the amount of all payments of the
Purchase Price received by each RPA Seller prior to such Settlement Date in
respect of such Receivables, any Credit Adjustments to be made pursuant to
Section 3.4, and the settlements of the remaining Purchase Price for such
-----------
Receivables to be made as of such Settlement Date between Buyer and each RPA
Seller in accordance with Section 3.3. The balance due, if any, from Buyer to an
                          -----------
RPA Seller as reflected in

                                      -5-
<PAGE>

immediately available funds, or, unless otherwise agreed, shall automatically be
deemed an assignment of an interest in the Seller Interest in accordance with
Section 3.3 in an amount equal to the unpaid portion of the Purchase Price then
-----------
due and payable, which participation shall be evidenced by the Settlement
Statement.

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES

     Section 4.1. RPA Seller's Representations and Warranties. Each RPA Seller,
                  -------------------------------------------
but only as to itself and as to those Receivables, if any, transferred by it
hereunder, hereby severally (and not jointly) represents and warrants to, and
agrees with, Buyer as of the SMT Termination Date that:

     (a)  Organization, Good Standing, and Qualification. SAC is a corporation
          ----------------------------------------------
duly organized and validly existing in good standing under the laws of the State
of Delaware, and has full corporate power, authority, and right 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. FCNB is a national banking association
duly organized and validly existing and in good standing under the laws of the
United States of America, and has full corporate power, authority, and right 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. Such RPA Seller is duly qualified
to do business and is in good standing in each State of the United States where
the nature of its business requires it to be so qualified.

     (b)  Due Authorization. The execution and delivery of this Agreement, any
          -----------------
Supplemental Conveyance, the Servicing Agreement, or any other document or
instrument delivered pursuant hereto or thereto (the "Conveyance Papers"), to
                                                      -----------------
the extent that such RPA Seller is party thereto, and the consummation of the
transactions provided for in this Agreement or any such other Conveyance Paper,
have been duly authorized by all necessary corporate action on the part of such
RPA Seller.

     (c)  No Conflict. The execution and delivery of the Conveyance Papers, the
          -----------
performance of the transactions contemplated by the Conveyance Papers, and the
fulfillment of the terms of the Conveyance Papers 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 such RPA Seller is a party or by which it or any of its properties are
bound.

                                      -6-
<PAGE>

     (d)  No Violation. The execution and delivery of the Conveyance Papers, the
          ------------
performance of the transactions contemplated by the Conveyance Papers, and the
fulfillment of the terms of the Conveyance Papers will not conflict with or
violate any material Requirements of Law applicable to such RPA Seller.

     (e)  No Proceedings. There are no proceedings or investigations pending or,
          --------------
to the best knowledge of such RPA Seller, threatened against such RPA Seller,
before any Governmental Authority (i) asserting the invalidity of the Conveyance
Papers, (ii) seeking to prevent the consummation of any of the transactions
contemplated by the Conveyance Papers, (iii) seeking any determination or ruling
that, in the reasonable judgment of such RPA Seller, would materially and
adversely affect the performance by such RPA Seller of its obligations under the
Conveyance Papers, or (iv) seeking any determination or ruling that would
materially and adversely affect the validity or enforceability of the Conveyance
Papers.

     (f)  All Consents Required. All approvals, licenses, authorizations,
          ---------------------
consents, orders, or other actions of any Person or of any Governmental
Authority required in connection with the execution and delivery of the
Conveyance Papers by such RPA Seller, the performance by such RPA Seller of the
transactions contemplated by the Conveyance Papers, and the fulfillment by such
RPA Seller of the terms of the Conveyance Papers, have been obtained.

     (g)  Identification of Accounts and Receivables. As of the SMT Termination
          ------------------------------------------
Date, FCNB or SAC, as appropriate, has (i) indicated or caused to be indicated
in its books and records and in the computer files of the Receivables that
Receivables created in respect of the Accounts have been sold to Buyer in
accordance with this Agreement and transferred to the Issuer pursuant to the
Servicing Agreement for the benefit of Noteholders and (ii) has delivered or
caused to be delivered to Buyer (or to the Trustee, if so directed by Buyer) a
computer file or microfiche list containing a true and complete list of all such
Accounts, identified by account number and by the Receivable balance as of the
SMT Termination Date.

     (h)  Existing Financing Statements. There is no financing statement or
          -----------------------------
similar statement or instrument of registration naming such RPA Seller as
"debtor", "transferor" or similar party (other than those, if any, which have
been released or terminated or the scope of which has otherwise been effectively
limited) under the law of any jurisdiction now on file or registered in any
public office covering any interest of any kind in the Accounts or Receivables,
or intended so to be, and such RPA Seller will not execute or authorize there to
be on file in any public office any financing statement or similar statement or
instrument of registration under the laws of any jurisdiction relating to the
Accounts or Receivables, except (i) any financing statements or assignments to
be filed in respect of and covering any security or other interest of Buyer or
the Trustee pursuant to this Agreement or the Servicing

                                      -7-
<PAGE>

Agreement, and (ii) any financing statements filed against FCNB with respect to
its regular transfers of receivables to SAC.

     (i)  Filings. All filings and recordings required to perfect the title of
          -------
Buyer to the Receivables purchased hereunder have been or will have been
accomplished prior to the SMT Termination Date and each Addition Date and are in
full force and effect, and such RPA Seller shall at its expense perform all acts
and execute all documents reasonably requested by Buyer at any time to evidence,
perfect, maintain, and enforce the title of Buyer in such Receivables and the
transfer thereof to the Issuer. Such RPA Seller will, at the reasonable request
of Borrower, execute and file additional financing statements reasonably
satisfactory in form and substance to Buyer. All filings and recordings required
to perfect the title of SAC the Receivables to be transferred by it to Buyer
pursuant to Sections 2.3(a)(i) and 2.3(b) have been accomplished and are in full
            ------------------     ------
force and effect.

     (j)  Binding Obligations. The Conveyance Papers to which such RPA Seller is
          -------------------
party constitute legal, valid and binding obligations of such RPA Seller,
enforceable against such RPA Seller in accordance with their terms, except as
such enforceability may be limited by Debtor Relief Laws and except as such
enforceability may be limited by general principles of equity (whether
considered in a suit at law or in equity).

     (k)  Valid Conveyance. As of the SMT Termination Date, the Conveyance
          ----------------
Papers then in existence constitute a valid sale, assignment, and conveyance to
Buyer of all right, title and interest of such seller in, to, and under the
Receivables then existing and thereafter created in the Accounts (other than
Receivables in the Additional Accounts), all monies due or to become due with
respect thereto (including all Finance Charge Receivables), together with all
Collections, Recoveries and other proceeds of such Receivables and Insurance
Proceeds relating thereto, and such property will be owned free and clear of any
Lien of any Person claiming through or under such RPA Seller and its Affiliates,
except for Liens permitted under Section 5.1(d).
                                 --------------

     (l)  Eligibility of Receivables. Such RPA Seller hereby represents and
          --------------------------
warrants to Buyer as of the SMT Termination Date that (i) as of the SMT
Termination Date, Schedule 1 to this Agreement and the computer file or
                  ----------
microfiche list delivered pursuant to Section 2.1(b) is an accurate and complete
                                      --------------
listing in all material respects of all the Accounts as of the SMT Termination
Date and the information contained therein with respect to the identity of such
Accounts and the Receivables existing thereunder is true and correct in all
material respects as of the SMT Termination Date, (ii) each Receivable then
existing is an Eligible Receivable, (iii) each Receivable then existing has been
conveyed to Buyer free and clear of any Lien of any Person and in compliance, in
all material respects, with all Requirements of Law applicable to such RPA
Seller and (iv) with respect to each Receivable then

                                      -8-
<PAGE>

existing, all consents, licenses, approvals, or authorizations of or
registrations or declarations with any Governmental Approval required to be
obtained, effected or given by such RPA Seller in connection with the transfer
of such Receivable to Buyer have been duly obtained, effected, or given and are
in full force and effect. On each day on which any new Receivable is conveyed by
such RPA Seller to Buyer hereunder, such RPA Seller shall be deemed to represent
and warrant to Buyer that (i) each Receivable conveyed on such day is an
Eligible Receivable, (ii) each Receivable conveyed on such day has been conveyed
to Buyer free and clear of any Lien of any Person and in compliance, in all
material respects, with all Requirements of Law applicable to such RPA Seller,
(iii) with respect to each such Receivable, all consents, licenses, approvals or
authorizations of or registrations or declarations with, any Governmental
Authority required to be obtained, effected, or given by such RPA Seller in
connection with the conveyance of such Receivable to the Issuer have been duly
obtained, effected or given and are in full force and effect, and (iv) the
representations and warranties set forth in Sections 4.1(j) and (k) are true and
                                            ---------------     ---
correct with respect to each Receivable transferred on such day as if made on
such day.

     (m)  Eligible Accounts. As of the SMT Termination Date, each Account (other
          -----------------
than Additional Accounts) is an Eligible Account.

     (n)  Selection Procedures. No selection procedures believed by such RPA
          --------------------
Seller to be materially adverse to the interests of Buyer or its successors and
assigns were utilized by such RPA Seller in selecting the Accounts.

     (o)  FDIC Insurance. FCNB's deposits are insured by the Federal Deposit
          --------------
Insurance Corporation ("FDIC").
                        ----

     Section 4.2. RPA Sellers' Representations and Warranties Regarding
                  -----------------------------------------------------
Additional Accounts. Each RPA Seller, but only as to itself and as to those
-------------------
Receivables, if any, transferred by it hereunder, hereby severally (and not
jointly) represents and warrants, and agrees with Buyer, as of each Addition
Date, that:

     (a)  Reconfirmation of Representations and Warranties. All representations
          ------------------------------------------------
and warranties made by such RPA Seller pursuant to Section 4.1 remain true and
                                                   -----------
correct in all respects as of such Addition Date as if made on such date.

     (b)  Identification of Accounts and Receivables. FCNB has, as of the
          ------------------------------------------
Addition Date with respect to Additional Accounts added pursuant Section 2.2(a),
                                                                 --------------
and will have, as of the fifth Business Day after the first day of the calendar
month occurring after any Addition Date occurring under Section 2.2(c), (i)
                                                        --------------
indicated or caused to be indicated in its books and records and in the computer
files of the Receivables that Receivables created in respect of the Additional
Accounts have been sold to Buyer in accordance with this Agreement and
transferred to the Issuer

                                      -9-
<PAGE>

pursuant to the Servicing Agreement for the benefit of the Noteholders and (ii)
delivered or caused to be delivered to Buyer (or to the Trustee, if so directed
by Buyer) a computer file or microfiche list containing a true and correct list
of all such Additional Accounts, identified by account number and by the
Receivable balance as of the Addition Date for Additional Accounts added
pursuant to Section 2.2(a) and as of such fifth Business Day of a calendar month
            --------------
with respect to Additional Accounts added pursuant to Section 2.2(b) and any
                                                      --------------
such computer file or microfiche list is or will be an accurate and complete
listing in all material respects of all the Additional Accounts as of the
Addition Date or as of such fifth Business Day and the information contained
therein with respect to the identity of such Additional Accounts and the
Receivables existing thereunder is true and correct in all material respects as
of such date.

     (c)  Eligibility of Accounts. Each Additional Account is, as of the
          -----------------------
Addition Date, an Eligible Account.

     (d)  Selection Procedures. The Additional Accounts were assigned randomly
          --------------------
to Cycles by FCNB. No selection procedures believed by such RPA Seller to be
materially adverse to the interests of Buyer or its successors and assigns were
utilized by such RPA Seller in selecting the Additional Accounts from available
Eligible Accounts.

     (e)  Insolvency. Such RPA Seller is not insolvent as of the Addition Date.
          ----------

     (f)  Bankruptcy Proceeding. Such RPA Seller has not filed a voluntary
          ---------------------
proceeding under the Debtor Relief Laws and has no knowledge of the filing of
any involuntary proceeding against it under such laws.

     (g)  Valid Conveyance. As of each Addition Date, a valid sale, assignment
          ----------------
and conveyance to Buyer of all right, title, and interest of such RPA Seller in,
to, and under the Receivables then existing and thereafter created in respect of
the Additional Accounts, all monies due or to become due with respect thereto
(including all Finance Charge Receivables), together with all proceeds of such
Receivables and Insurance Proceeds relating thereto, has been consummated and
such property will be held free and clear of any Lien of any Person claiming
through or under such RPA Seller and its Affiliates, except for Liens permitted
under Section 5.1(d).
      --------------

     Section 4.3. Representations and Warranties of Buyer. As of the SMT
                  ---------------------------------------
Termination Date, and each Addition Date, Buyer hereby represents and warrants
to, and agrees with, the RPA Sellers that:

     (a)  Organization and Good Standing. Buyer is a corporation duly organized
          ------------------------------
and validly existing in good standing under the laws of the State of

                                     -10-
<PAGE>

Delaware and has full corporate power, authority, and right 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 the Conveyance Papers.

     (b)  Due Qualification. Buyer is neither required to qualify, nor to
          -----------------
register, as a foreign corporation in any state in order to conduct its
business, and has obtained all necessary licenses and approvals with respect to
Buyer required under federal and Delaware law.

     (c)  Due Authorization. The execution and delivery of the Conveyance Papers
          -----------------
and the consummation of the transactions provided for in the Conveyance Papers
have been duly authorized by Buyer by all necessary corporate action on the part
of Buyer.

     (d)  No Conflict. The execution and delivery of the Conveyance Papers, the
          -----------
performance of the transactions contemplated by the Conveyance Papers and the
fulfillment of the terms of the Conveyance Papers 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 Buyer is a party or by which it or any of its properties are bound.

     (e)  No Violation. The execution and delivery of the Conveyance Papers, the
          ------------
performance of the transactions contemplated by the Conveyance Papers, and the
fulfillment of the terms of the Conveyance Papers will not conflict with or
violate any Requirements of Law applicable to Buyer.

     (f)  No Proceedings. There are no proceedings or investigations pending or,
          --------------
to the best knowledge of Buyer, threatened against Buyer, before any
Governmental Authority (i) asserting the invalidity of the Conveyance Papers,
(ii) seeking to prevent the consummation of any of the transactions contemplated
by the Conveyance Papers, (iii) seeking any determination or ruling that, in the
reasonable judgment of Buyer, would materially and adversely affect the Papers,
or (iv) seeking any determination or ruling that would materially and adversely
affect the validity or enforceability of the Conveyance Papers.

     (g)  All Consents Required. All approvals, authorizations, licenses,
          ---------------------
consents, orders, or other actions of any Person or of any Governmental
Authority required in connection with the execution and delivery of the
Conveyance Papers, the performance of the transactions contemplated by the
Conveyance Papers, and the fulfillment of the terms of the Conveyance Papers
have been obtained.

                                     -11-
<PAGE>

     Section 4.4. Other Matters.
                  -------------

     (a)  The representations and warranties set forth in this Article IV shall
                                                               ----------
survive the conveyance of the Receivables to Buyer, and termination of the
rights and obligations of the Buyer and RPA Sellers under this Agreement. Upon
discovery by Buyer or an RPA Seller of a breach of any of the foregoing
representations and warranties, the party discovering such breach shall give
prompt written notice to the others.

     (b)  In no event shall Buyer be liable to either RPA Seller on account of
breach of any representation or warranty of Buyer set forth herein.

                                   ARTICLE V

                      COVENANTS OF RPA SELLERS AND BUYER

     Section 5.1. RPA Seller Covenants. Each RPA Seller, but only as to itself
                  --------------------
and as to those Receivables, if any, transferred by it hereunder, hereby
severally (and not jointly) covenants and agrees with Buyer as follows:

     (a)  Charge Account Agreements and Charge Account Guidelines. FCNB shall
          -------------------------------------------------------
comply with and perform its obligations under the Charge Account Guidelines,
except insofar as any failure to so comply or conform would not materially and
adversely affect the rights of the Trustee and Noteholders under the Servicing
Agreement or under the Notes. In that regard, except as aforesaid, and so long
as such changes are made applicable to comparable segments of the charge
accounts originated by FCNB which have characteristics the same as, or
substantially similar to, the Accounts pursuant to which the Receivables were
created, FCNB shall be free to change the terms and provisions of such Charge
Account Agreements or the Charge Account Guidelines in any respect (including
the calculation of the amount, the timing, or charge-offs), and shall notify the
Rating Agencies for changes that lower minimum payment terms, lower Finance
Charge rates, change terms from fixed- to floating-rate, and any changes to
delinquency and charge-off policies.

     (b)  Finance Charges and Other Fees. Except (i) as otherwise required by
          ------------------------------
any Requirements of Law or (ii) as is consistent with the provisions of the
Servicing Agreement and all Supplements thereto and as is deemed by FCNB to be
advisable for the charge account program based on a good faith assessment by
FCNB of the various factors impacting the use of FCNB charge accounts, FCNB
shall not reduce at any time (x) the Finance Charges assessed in respect of any
Accounts or (y) any other fees charged on any of the Accounts, if as a result of
any such reduction, FCNB's reasonable expectation of the Portfolio Yield as of
such date would be less than the highest of the Base Rates for the Notes then
outstanding.

                                     -12-
<PAGE>

     (c)  Receivables Not to be Evidenced by Promissory Notes. FCNB will take no
         ----------------------------------------------------
action to cause any Receivable to be evidenced by any instrument.

     (d)  Security Interests. Except for the conveyances hereunder, (i) such RPA
          ------------------
Seller will not sell, pledge, assign or transfer to any other Person, or grant,
create, incur, assume or suffer to exist any Lien on any Receivable, whether now
existing or hereafter created, or any interest therein; (ii) such RPA Seller
will immediately notify Buyer and the Trustee of the existence of any Lien on
any Receivable; and (iii) such RPA Seller shall defend the right, title, and
interest of Buyer and its successors and assigns in, to, and under the
Receivables, whether now existing or hereafter created, against all claims of
third parties claiming through or under such RPA Seller; provided, however, that
                                                         --------  -------
nothing in this Section 5.1(d) shall prevent or be deemed to prohibit such RPA
                --------------
Seller from suffering to exist upon any of the Accounts or Receivables any Liens
for municipal or other local taxes if such taxes shall not at the time be due
and payable or if such RPA Seller shall concurrently be contesting the validity
thereof in good faith by appropriate proceedings and shall have set aside on its
books adequate reserves with respect thereto.

     (e)  Chief Executive Office; State of Organization. Each RPA Seller's chief
          ---------------------------------------------
executive office and state of organization is identified on Schedule 2. Neither
                                                            ----------
RPA Seller will relocate its chief executive office or state of organization,
unless such RPA Seller shall have given to Buyer not less than 15 days' written
notice of its intention to do so, clearly describing the new location or state
of organization. If as a result of such relocation, the applicable provisions of
the UCC or any other applicable law require the filing of any amendment to any
previously-filed financing or continuation statement or the filing of a new
financing statement, the appropriate RPA Seller shall file such financing
statement or amendment as may be necessary with respect to the transfer of
accounts (as defined in Section 9-106 of the UCC in effect in the State of
Illinois). Additionally, FCNB shall clearly and unambiguously identify or cause
to be identified each Account (including any Additional Account designated
pursuant to Section 2.2) in its computer records relating to the Receivables, to
            -----------
reflect that the Receivables arising in such Account have been sold to Buyer and
transferred by Buyer to the Issuer pursuant to the Servicing Agreement. Such RPA
Seller shall, prior to the sale or transfer to a third party of any receivable
owned by such RPA Seller or held in its custody, examine its books and records,
including any computer records, to determine that such receivable is not a
Receivable.

     (f)  Change of Name or Corporate Structure. Within 30 days after such RPA
          -------------------------------------
Seller makes any change in its name, identity, or corporate structure which
would make any financing statement or continuation statement filed in accordance
with Section 2.1 above seriously misleading within the meaning of Section
     -----------
9-402(7)

                                     -13-
<PAGE>

of the UCC as in effect in the state where such financing statement or
continuation statement was filed, such RPA Seller shall file such financing
statements or amendments as may be necessary with respect to the transfer of
Accounts.

     (g)  Further Assurances. Such RPA Seller will make, execute or endorse,
          ------------------
acknowledge, and file or deliver to Buyer from time to time such schedules,
confirmatory assignments, conveyances, transfer endorsements, powers of
attorney, certificates, reports and other assurances or instruments and take
such further steps relating to the Receivables and other rights covered by this
Agreement, as Buyer may request and reasonably require.

     (h)  Indemnification. Such RPA Seller agrees to indemnify, defend and hold
          ---------------
Buyer harmless from and against any and all loss, liability, damage, judgment,
claim, deficiency, or expense (including interest, penalties, reasonable
attorneys' fees and amounts paid in settlement) to which Buyer may become
subject insofar as such loss, liability, damage, judgment, claim, deficiency, or
expense arises out of or is based upon (i) a breach by such RPA Seller of its
warranties and covenants contained in Section 4.1 (provided, however, with
                                      -----------  --------  -------
respect to the representations and warranties contained in Sections 4.1(1) and
                                                           ---------------
(m) above the indemnification provided for herein shall apply only to a breach
---
involving a material amount of Accounts or Receivables) or (ii) the
representations of such RPA Seller contained in Section 4.2, or any information
                                                -----------
certified in any Schedule delivered by such RPA Seller hereunder, being untrue
in any material respect at any time. The obligations of the RPA Sellers under
this Section 5.1(h) shall be considered to have been relied upon by Buyer and
     --------------
shall survive the execution, delivery, and performance of this Agreement
regardless of any investigation made by Buyer or on its behalf.

     (i)  Municipal and Local Taxes. FCNB or the Servicer shall be responsible
          -------------------------
for collecting all state, local, and municipal taxes associated with the
Accounts and Receivables and for remitting the same to the appropriate
Governmental Authority, together with all tax returns, reports, or affidavits
required by such Governmental Authority in connection therewith.

     (j)  Conveyance of Accounts. Such RPA Seller shall not convey, assign,
          ----------------------
exchange, or otherwise transfer the Accounts to any Person prior to termination
of this Agreement, and the Servicing Agreement.

     (k)  Non-Petition. Each RPA Seller hereby covenants and agrees that prior
          ------------
to the date which is one year and one day after the Scheduled Trust Termination
Date, it will not institute against, or join any other person in instituting
against, Buyer any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any federal or state bankruptcy or similar law;
provided, however, that, while the Notes are outstanding, the agreement of the
--------  -------
RPA Sellers set forth in this sentence will terminate and be of no force and
effect if the absence of such

                                     -14-
<PAGE>

agreement would not in and of itself result in the lowering, suspension or
withdrawal by Standard and Poor's, if such rating agency then rates the Notes,
or by Moody's, if such rating agency then rates the Notes, of their respective
ratings of the Notes. Nothing in this Section 5.1(1) shall preclude, or be
                                      --------------
deemed to estop, either RPA Seller (a) from taking or omitting to take any
action prior to such date (i) in any case or proceeding voluntarily filed or
commenced by or on behalf of Buyer under or pursuant to any such law or (ii)
except for joining in the involuntary petition, in any involuntary case or
proceeding pertaining to Buyer which is filed or commenced by or on behalf of a
Person other than an RPA Seller (or any Person to which an RPA Seller shall have
assigned, transferred or otherwise conveyed any part of its obligations
hereunder) under or pursuant to any such law or (b) from commencing or
prosecuting any legal action which is not an involuntary case or proceeding
under or pursuant to any such law against Buyer or any of its properties.

     (l)  Merger; Consolidation. FCNB shall not consolidate with or merge into
          ---------------------
any other Person or convey or transfer its properties and assets substantially
as an entirety to any Person, unless:

          (i)  the Person formed by such consolidation or into which FCNB is
     merged or the Person which acquires by conveyance or transfer the
     properties and assets of FCNB substantially as an entirety shall be, if
     FCNB is not the surviving entity, organized and existing under the laws of
     the United States of America or any State or the District of Columbia, and
     shall be a national banking association, federal savings association, state
     banking corporation or state savings association which is not subject to
     the bankruptcy laws of the United States of America and shall expressly
     assume, by an agreement supplemental hereto, executed and delivered to the
     Buyer, in form satisfactory to the Buyer, the performance of every covenant
     and obligation of FCNB, as applicable hereunder, and shall benefit from all
     the rights granted to FCNB, as applicable hereunder. To the extent that any
     right, covenant or obligation of FCNB, as applicable hereunder, is
     inapplicable to the successor entity, such successor entity shall be
     subject to such covenant or obligation, or benefit from such right, as
     would apply to the extent practicable, to such successor entity;

          (ii) FCNB shall have delivered to the Buyer an Officer's Certificate
     and an Opinion of Counsel, each, in form and substance reasonably
     acceptable to the Buyer, stating that such consolidation, merger,
     conveyance or transfer and such supplemental agreement comply with this
     Agreement and that all conditions precedent herein provided for relating to
     such transaction have been complied with and, in the case of the Opinion of
     Counsel, that such supplemental agreement is legal, valid and binding with
     respect to FCNB; and

                                     -15-
<PAGE>

          (iii) FCNB shall have notified the Rating Agencies of such actions in
     writing.

     Section 5.2. Buyer Covenants Regarding Nondisclosure; Inspection. Buyer
                  ---------------------------------------------------
hereby covenants and agrees with the RPA Sellers (and agrees to cause the
Trustee) not to disclose to any Person any of the account numbers or other
information contained in the computer files or microfiche lists delivered to
Buyer (or to Trustee if buyer so directs) pursuant to Sections 2.1 and 2.2, and
                                                      ------------     ---
Section 4.2(b), 7.1(c) and 7.2(c), except (i) as is required in connection with
--------------  ------     ------
the performance of the Trustee's duties under the Servicing Agreement or in
enforcing the rights of the Noteholders and (ii) such disclosures as are
required upon appointment of a successor Servicer under the Servicing Agreement.
Buyer agrees (and shall cause the Trustee) to take such measures as shall be
reasonably requested by either RPA Seller to protect and maintain the security
and confidentiality of such information, and in connection therewith, shall
allow the RPA Sellers to inspect the applicable security and confidentiality
arrangements from time to time in normal business hours. Buyer shall (and shall
cause the Trustee to) give the RPA Sellers five days prior written notice of any
disclosure pursuant to this Section 5.2.
                            -----------

                                  ARTICLE VI

                             REPURCHASE OBLIGATION

     Section 6.1. Mandatory Repurchase.
                  --------------------

     (a)  Ineligible Receivables. Each RPA Seller agrees that all
          ----------------------
representations and warranties made by it with respect to any Account or
Receivable pursuant to Section 4.1 and 4.2 of the Amended and Restated
                       -----------     ---
Receivables Purchase Agreement dated as of December 13, 1994 shall be deemed for
all purposes to have been made pursuant to this Agreement as of the day when
each was made or deemed made, as if this Agreement had been in effect on that
day. Except as hereinafter provided, in the event of a breach by an RPA Seller
of any representation and warranty of such RPA Seller set forth in Section
                                                                   -------
4.1(1), within 60 days (or with the prior written consent of Buyer, such longer
------
period specified in such consent) of the earlier to occur of the discovery of
such breach by such RPA Seller, or receipt by such RPA Seller of written notice
of such breach given by Buyer, such RPA Seller shall repurchase and Buyer shall
convey, without recourse, representation, or warranty, all of Buyer's right,
title, and interest in each Principal Receivable to which such breach relates
(an "Ineligible Receivable") on the terms and conditions set forth below;
     ---------------------
provided, however, that no such repurchase shall be required to be made with
--------  -------
respect to such Ineligible Receivable if, on any day within such 60-day period
(or such longer period as may be specified in the consent), either (i) the
representations and warranties of such RPA Seller in the second sentence of
Section 4.1(1) with respect to such Ineligible Receivable shall then be true and
--------------
correct in all

                                     -16-
<PAGE>

material respects with respect to such Ineligible Receivable as if such
Ineligible Receivable had been conveyed to Buyer on such day, or (ii) the
aggregate amount of Ineligible Receivables outstanding at any time and with
respect to which such representations and warranties continue to be incorrect in
any material respect does not in the sole reasonable judgment of an officer of
Buyer have a material adverse effect on the interest of the Issuer in the
Receivables as a whole, including the ability of the Servicer in its sole
reasonable judgment to collect the Receivables. Notwithstanding anything
contained in this Section 6.1(a) to the contrary, in the event of breach of any
                  --------------
representation and warranty of an RPA Seller set forth in Section 4.1(1) with
                                                          --------------
respect to (x) each Receivable existing as of the SMT Termination Date or an
Addition Date, as applicable, and (y) each new Receivable acquired by Buyer
hereunder, having been conveyed to Buyer free and clear of any Lien of any
Person claiming through or under such RPA Seller and its Affiliates and in
compliance in all material respects with all Requirements of Law applicable to
such RPA Seller, immediately upon the earlier to occur of the discovery of such
breach by such RPA Seller, or receipt by such RPA Seller of written notice of
such breach given by Buyer, such RPA Seller shall repurchase and Buyer shall
convey, without recourse, representation or warranty, all of Buyer's right,
title and interest in each Ineligible Receivable affected by such breach.

     (b)  In the event of a breach of the representations and warranties of an
RPA Seller set forth in Sections 4.1(j) and (k), Buyer may give such RPA Seller
                        ---------------     ---
written notice directing such RPA Seller to repurchase all of the Principal
Receivables transferred by such RPA Seller hereunder within 45 days after such
notice (or within such longer period as may be specified in such notice);
whereupon, such RPA Seller shall repurchase and Buyer shall convey to such RPA
Seller, without recourse, representation, or warranty, all of Buyer's right,
title and interest in all of the Principal Receivables transferred by such RPA
Seller, on a Settlement Date first occurring after such applicable period on the
terms and conditions set forth below; provided, however, that no such repurchase
                                      --------  -------
by an RPA Seller shall be required to be made if, at any time during such
applicable period the representations and warranties of such RPA Seller
contained in Sections 4.1(j) and (k) shall then be true and correct in all
             ---------------     ---
material respects.

     (c)  The Repurchase Price for the Principal Receivables shall be an amount
equal to: (i) for Ineligible Receivables repurchased pursuant to Section 6.1(a),
                                                                 --------------
the aggregate face amount of each such Ineligible Receivable on the date of
repurchase, and (ii) for Principal Receivables repurchased pursuant to Section
                                                                       -------
6.1(b), an amount equal to the "deposit amount" paid pursuant to Section 2.4(e)
------                                                           --------------
of the Servicing Agreement. Payment of the Repurchase Price may be made, at the
option of the repurchasing RPA Seller: (i) in immediately available funds; (ii)
as a reduction in such RPA Seller's interest in and to any participation
interest in the Seller Interest in an amount equal to the unpaid portion of the
Repurchase Price; or (iii) any combination of the foregoing; provided, however,
                                                             --------  -------
that such RPA Seller must make

                                     -17-
<PAGE>

payment of a sufficient portion of the Repurchase Price in immediately available
funds to enable Buyer to make any cash payment to the Issuer then required under
the Servicing Agreement.

     Section 6.2. Optional Repurchases. (a) Buyer shall have the option to
                  --------------------
require either RPA Seller to repurchase all of Buyer's rights, titles, and
interests in, to, and under all Receivables transferred by such RPA Seller
hereunder and created pursuant to certain Accounts designated by Buyer (the
"Removed Accounts"); provided that, Buyer shall only be entitled to require such
 ----------------    -------- ----
repurchase (i) if Buyer is able to effect a retransfer of such Receivables from
the Issuer in compliance with Section 2.7 or 7.2 of the Servicing Agreement,
                              -----------    ---
(ii) if Buyer and both RPA Sellers mutually agree as to the designation of the
Removed Accounts, and (iii) the repurchasing RPA Seller shall deliver an Opinion
of Counsel reasonably acceptable to Buyer and the Trustee that such repurchase
would not constitute a fraudulent conveyance by such RPA Seller. On or before
the fifth Business Day (the "Repurchase Notice Date") prior to the date on which
                             ----------------------
the Removed Accounts will be designated by Buyer, Buyer shall give the
repurchasing RPA Seller or RPA Sellers (as the case may be) written notice of
its election to require such RPA Seller or RPA Sellers to so repurchase the
Receivables of the Removed Accounts on the date specified in such notice (the
"Repurchase Date"). The Repurchase Price for an optional repurchase effected
 ---------------
pursuant to this Section 6.2(a) shall be: (i) for Receivables purchased pursuant
                 --------------
to Section 2.7 of the Servicing Agreement, an amount equal to the total recorded
   -----------
unpaid balance of such repurchased Receivables (including Principal Receivables
and Finance Charge Receivables) on the Repurchase Date, and (ii) for Receivables
purchased pursuant to Section 7.2 of the Servicing Agreement, an amount equal to
                      -----------
the "deposit amount" paid in compliance with Section 4.2 of the Servicing
                                             -----------
Agreement. Upon execution and delivery of any Reconveyance effecting any
repurchase as contemplated in this Section 6.2(a), Buyer shall have no further
                                   --------------
right, title, or interest in any Receivables from the Removed Accounts.

     (b)  Payment of the Repurchase Price as specified in Section 6.2(a) above
                                                          --------------
shall be made in any manner provided for in Section 6.1; provided, however, that
                                            -----------  --------  -------
the repurchasing RPA Seller must make payment of a sufficient portion of the
Repurchase Price in immediately available funds to enable Buyer to make any cash
payment to the Issuer then required under the Servicing Agreement.

     Section 6.3. Conveyance of Repurchased Receivables. On or prior to the date
                  -------------------------------------
that an RPA Seller is required to repurchase Receivables under Section 6.1, or
                                                               -----------
on the date an RPA Seller is permitted to purchase any Receivables under Section
                                                                         -------
6.2, or on any Repurchase Date, as the case may be, Buyer shall execute and
---
deliver to the repurchasing RPA Seller a Reconveyance substantially in the form
and upon the terms of Exhibit B, pursuant to which Buyer conveys to such RPA
                      ---------
Seller all of Buyer's right, title, and interest in the Receivables to be
repurchased by such seller

                                     -18-
<PAGE>

and, with respect to repurchases effected pursuant to Section 6.2, within three
                                                      -----------
Business Days thereafter, a computer file or microfiche list containing a true
and complete list of all Removed Accounts identified by account number and the
aggregate Receivable balances to be repurchased by such RPA Seller in such
Removed Accounts as of the Repurchase Notice Date. Buyer shall (and shall cause
the Trustee to) execute such other documents or instruments of conveyance or
take such other actions as the repurchasing RPA Seller may reasonably require to
effect any repurchase of Receivables pursuant to this Article VI.
                                                      ----------

     Section 6.4. Sole Remedy. The obligation of an RPA Seller to repurchase
                  -----------
Ineligible Receivables pursuant to Section 6.1 shall constitute the sole remedy
                                   -----------
available to Buyer, the Trustee, any Noteholder, any Servicer, any Enhancement
Provider or any other Person respecting any breach of the representations and
warranties set forth in Sections 4.1(j), (k), (l) and (m) with respect to such
                        ---------------  ---  ---     ---
Receivables.

     Section 6.5. Selection of Removed Accounts. By giving the written notice on
                  -----------------------------
the Repurchase Notice Date as required in Section 6.2 and by acceptance of the
                                          -----------
Reconveyance, an RPA Seller represents and warrants that no selection procedures
believed by such RPA Seller to be materially adverse to the interests of Buyer
or the holders of the Notes were utilized in selecting the Removed Accounts.

     Section 6.6. Assignment of Repurchase Rights and Obligations. The RPA
                  -----------------------------------------------
Sellers may elect (between themselves, and without the necessity of any consent
or approval of any other Person) that any repurchase of Receivables required or
permitted to be effected by an RPA Seller (the "Assignor RPA Seller") under
                                                -------------------
Section 6.1 or Section 6.2 may be effected by the other RPA Seller (the
-----------    -----------
"Assignee RPA Seller"), with such election to be made by the RPA Sellers'
 -------------------
delivery to Buyer of notice, not more than two Business Days prior to the date
of such repurchase (or such later time as to which Buyer may consent) of such
election, which notice shall identify the Receivables subject to such election.
Upon delivery of such notice all rights and obligations of the Assigner RPA
Seller in respect of such repurchase shall be automatically assigned to the
Assignee RPA Seller, the Assignor RPA Seller shall have no rights, liabilities
or obligations in respect of such repurchase, and such repurchase shall
thereupon be consummated by and in the name of the Assignee RPA Seller.

                                  ARTICLE VII

                             CONDITIONS PRECEDENT

     Section 7.1. Conditions to Buyer's Obligations Regarding Initial
                  ---------------------------------------------------
Receivables. The obligations of Buyer to purchase the Receivables in Accounts on
-----------

                                     -19-
<PAGE>

the SMT Termination Date shall be subject to the satisfaction of the following
conditions:

     (a)  All representations and warranties of the RPA Sellers contained in
this Agreement shall be true and correct on the SMT Termination Date with the
same effect as though such representations and warranties had been made on such
date;

     (b)  All information concerning the Accounts provided to Buyer shall be
true and correct as of the SMT Termination Date in all material respects;

     (c)  FCNB shall have delivered or caused to be delivered to Buyer a
computer file or microfiche list containing a true and complete list of all
Accounts identified by account number and by the Receivables balance as of the
SMT Termination Date, and the RPA Sellers shall have substantially performed all
other obligations required to be performed by the provisions of this Agreement;

     (d)  Each RPA Seller shall have recorded and filed, at its expense, any
financing statement with respect to the Receivables (other than Receivables in
Additional Accounts) now existing and hereafter created for the transfer of
accounts (as defined in Section 9-106 of the UCC as in effect in the State of
Illinois) meeting the requirements of applicable state law in such manner and in
such jurisdictions as are necessary to perfect the sale of the Receivables to
Buyer, and shall have delivered a file-stamped copy of such financing statements
or other evidence of such filings (which may, for purposes of this paragraph,
consist of telephone confirmations of such filings) to Buyer;

     (e)  On or before the SMT Termination Date, the Servicing Agreement shall
have been duly executed and delivered by the parties thereto and the initial
closing under the Servicing Agreement shall take place simultaneously with the
initial closing hereunder; and

     (f)  All corporate and legal proceedings and all instruments in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to Buyer, and Buyer shall have received from the RPA Sellers
copies of all documents (including records of corporate proceedings) relevant to
the transactions herein contemplated as Buyer may reasonably have requested.

     Section 7.2. Conditions to Buyer's Obligations Regarding Supplemental
                  --------------------------------------------------------
Conveyances. The obligations of Buyer to purchase any Receivables created under
-----------
any Additional Accounts shall be subject to the satisfaction of the following
conditions:

                                     -20-
<PAGE>

     (a)  All representations and warranties of the RPA Sellers contained in
this Agreement shall be true and correct on the Addition Date with the same
effect as though such representations and warranties had been made on such date;

     (b)  All information concerning the Additional Accounts provided or to be
provided to Buyer shall be true and correct in all material respects as of the
Addition Date with respect to Additional Accounts added pursuant to Section
                                                                    -------
2.2(a) and as of the fifth Business Day after the first day of the calendar
------
month occurring after any Addition Date arising under Section 2.2(c);
                                                      --------------

     (c)  On or before each Addition Date with respect to Additional Accounts
added pursuant to Section 2.2(a) and on or before the fifth Business Day after
                  --------------
the first day of the Monthly Period occurring after any Addition Date arising
under Section 2.2(c): (i) FCNB shall have indicated or caused to be indicated in
      --------------
the computer files of the Receivables that Receivables created in respect of the
Additional Accounts have been sold to Buyer in accordance with this Agreement
and transferred to the Issuer pursuant to the Servicing Agreement for the
benefit of the Noteholders; (ii) FCNB shall have delivered or caused to be
delivered to Buyer (or to the Trustee, if so directed by Buyer) a computer file
or microfiche list containing a true and correct list of all such Additional
Accounts, identified by account number and by the Receivable balance as of the
Addition Date for Additional Accounts added pursuant to Section 2.2(a) or as of
                                                        --------------
such fifth Business Day of a Monthly Period with respect to Additional Accounts
added pursuant to Section 2.2(c); and (iii) the RPA Seller shall have
                  --------------
substantially performed all other obligations required to be performed by the
provisions of this Agreement;

     (d)  The appropriate RPA Seller or RPA Sellers shall have executed and
delivered a Supplemental Conveyance in conform with the requirement of Section
                                                                       -------
2.2; and
---

     (e)  Each RPA Seller shall have recorded and filed, at its expense, any
financing statement with respect to the Receivables in such Additional Accounts
now existing and hereafter created in connection with the transfer of accounts
(as defined in Section 9-106 of the UCC as in effect in the State of Illinois)
meeting the requirements of applicable state law in such manner and in such
jurisdictions as are necessary to perfect the sale of the Receivables to Buyer,
and shall have delivered a file-stamped copy of such financing statements or
other evidence of such filings (which may, for purposes of this paragraph,
consist of telephone confirmations of such filings) to Buyer.

     Section 7.3. Conditions Precedent to RPA Sellers' Obligations. The
                  ------------------------------------------------
obligations of an RPA Seller to sell Receivables on the SMT Termination Date and
on any Addition Date shall be subject to the satisfaction of the following
conditions:

                                     -21-
<PAGE>

     (a)  All representations and warranties of Buyer contained in this
Agreement shall be true and correct with the same effect as though such
representations and warranties had been made on such date;

     (b)  Payment or provision for payment of the Purchase Price shall have been
made in accordance with the provisions of Sections 3.3 and 3.4.
                                          ------------     ---

     (c)  All corporate and legal proceedings and all instruments in connection
with the transactions contemplated by this Agreement shall be satisfactory in
form and substance to the RPA Sellers, and the RPA Sellers shall have received
from Buyer copies of all documents (including records of corporate proceedings)
relevant to the transactions herein contemplated as the sellers may reasonably
have requested.

                                 ARTICLE VIII

                              TERM & TERMINATION

     Section 8.1. Term. This Agreement shall commence as of the date of
                  ----
execution and delivery hereof and shall continue in full force and effect until:
(a) the Issuer terminates; or (b) upon the occurrence of any of the following
events: Buyer or either RPA Seller shall (i) become insolvent, (ii) fail to pay
its debts generally as they become due, (iii) voluntarily seek, consent to, or
acquiesce in the benefit or benefits of any Debtor Relief Law, (iv) become a
party to (or be made the subject of) any proceeding provided for by any Debtor
Relief Law, other than as a creditor or claimant, and, in the event such
proceeding is involuntary, (1) within 10 Business Days after Buyer or such RPA
Seller, as applicable, has knowledge of such proceeding or the filing thereof
either (x) the petition instituting same has not been dismissed or (y) an order
has not been entered by the court having jurisdiction which allows continued
transfer to the Issuer or Buyer, as applicable, of Principal Receivables, in the
case of an RPA Seller's involuntary petition with no adverse effect to either
Buyer, the Issuer or the Noteholders, and in the case of Buyer's involuntary
petition with no adverse effect to either the Issuer or the Noteholders, or (2)
an order as contemplated in (1)(y) above having previously been entered, is no
longer in effect other than by reason of the termination of such proceeding;
provided, however, that Buyer shall have no duty to continue to purchase
--------  -------
Receivables or accept designation of Additional Accounts from and after the
filing of an involuntary petition but prior to dismissal; or (v) become unable
for any reason to convey or reconvey Receivables in accordance with the
provisions of this Agreement; provided, however, that the termination of this
                              --------  -------
Agreement pursuant to this Section 8.1(b) shall not discharge any Person from
                           --------------
any obligations incurred prior to such termination, including any obligations
with respect to Receivables sold prior to such termination. Notwithstanding
anything contained herein to the contrary, upon any termination of this
Agreement, Buyer shall not purchase Receivables created or accept Additional
Accounts designated on or after the date of such termination.

                                     -22-
<PAGE>

     Section 8.2. Effect of Termination. No termination or rejection or failure
                  ---------------------
to assume the executory obligations of this Agreement upon the bankruptcy of
either RPA Seller or Buyer shall be deemed to impair or affect the obligations
pertaining to any executed sale or executed obligations, including
pre-termination breaches of representations and warranties by either RPA Seller
or Buyer. Without limiting the foregoing, prior to termination, neither the
failure of FCNB to deliver or cause to be delivered computer records of
Additional Accounts or Settlement Statements, nor the failure of Buyer to pay a
Settlement Statement shall render such transfer or obligation executory, nor
shall the continued duties of the parties pursuant to Section 5 or Section 9.1
                                                      ---------    -----------
of this Agreement render an executed sale executory.

                                  ARTICLE IX

                           MISCELLANEOUS PROVISIONS

     Section 9.1. Amendment. This Agreement and the other Conveyance Papers and
                  ---------
the rights and obligations of the parties hereunder may not be changed orally,
but only by an instrument in writing signed by Buyer and the RPA Sellers, with
prior notice to the Rating Agencies, in accordance with this Section 9.1. This
                                                             -----------
Agreement and any other Conveyance Papers may be amended from time to time by
Buyer and the RPA Sellers to correct or supplement any provisions herein or in
any other Conveyance Papers which may be inconsistent with any other provisions
herein or to add any other provisions with respect to matters or questions
arising under this Agreement or any other Conveyance Papers which shall not be
inconsistent with the provisions of this Agreement or any other Conveyance
Papers; provided, however, that such action shall not adversely affect in any
        --------  -------
material respect the interests of the Trustee for the benefit of the Notes,
unless the Trustee shall consent thereto. Any Supplemental Conveyance or
Reconveyance executed in accordance with the provisions hereof shall not be
considered amendments to this Agreement. Any amendment that modifies the
Purchase Price or any obligation of Buyer or RPA Sellers must satisfy the Rating
Agency Condition.

     Section 9.2. Governing Law. This Agreement and the other Conveyance Papers
                  -------------
shall be construed in accordance with the laws of the State of Illinois, 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 9.3. Notices. All demands, notices and communications hereunder
                  -------
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by registered mail, return receipt requested, to (a) in
the case of FCNB, First Consumers National Bank, 9300 S.W. Gemini Drive,
Beaverton, Oregon 97005, Attn: President, (b) in the case of SAC, Spiegel
Acceptance Corporation, 400 West 9th Street, Suite 101A, Wilmington, Delaware
19801 Attn:

                                     -23-
<PAGE>

President, and (c) in the case of Buyer, Spiegel Credit Corporation III, 400
West 9th Street, Suite 101B, Wilmington, Delaware 19801 Attn: John Steele,
Treasurer; 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 9.4. Severability of Provisions. If any one or more of the
                  --------------------------
covenants, agreements, provisions or terms of this Agreement or any other
Conveyance Paper shall for any reason whatsoever be held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions, or terms of this Agreement or any
other Conveyance Paper and shall in no way affect the validity or enforceability
of the other provisions of this Agreement or of any other Conveyance Paper.

     Section 9.5. Assignment. Notwithstanding anything to the contrary contained
                  ----------
herein, other than Buyer's assignment of its rights, title, and interests in,
to, and under this Agreement to the Indenture Trustee for the benefit of the
Noteholders as contemplated by the Servicing Agreement and Section 9.6, and the
                                                           -----------
RPA Sellers' limited assignment rights set forth in Section 6.6, this Agreement
                                                    -----------
and all other Conveyance Papers may not be assigned by the parties hereto.

     Section 9.6. Acknowledgment and Agreement of RPA Sellers. By execution
                  -------------------------------------------
below, the RPA Sellers expressly acknowledge and agree that all of Buyer's
rights, titles and interest in, to and under this Agreement, including all of
Buyer's rights, titles and interests in and to the Receivables purchased
pursuant to this Agreement, shall be assigned by Buyer to the Indenture Trustee
for the benefit of the Noteholders, and the RPA Sellers consent to such assent.

     Section 9.7. Further Assurances. Buyer and the RPA Sellers agree to do and
                  ------------------
perform, from time to time, any and all acts and to execute any and all further
instruments required or reasonably requested by the other party more fully to
effect the purposes of this Agreement and the other Conveyance Papers, including
the execution of any financing statements or continuation statements or
equivalent documents relating to the Receivables for filing under the provisions
of the UCC or other law of any applicable jurisdiction.

     Section 9.8. No Waiver; Cumulative Remedies. No failure to exercise and no
                  ------------------------------
delay in exercising, on the part of Buyer and either RPA Seller, any right,
remedy, power or privilege hereunder, shall operate a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exhaustive of any rights,
remedies, powers and privileges provided by law.

                                     -24-
<PAGE>

     Section 9.9. Counterparts. This Agreement and all other Conveyance Papers
                  ------------
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
together shall constitute one and the same instrument.

     Section 9.10. Binding Effect; Third-Party Beneficiaries. This Agreement and
                   -----------------------------------------
the other Conveyance Papers will inure to the benefit of and be binding upon the
parties hereto, and their respective successors and permitted assigns. The
Trustee shall be considered a third-party beneficiary of this Agreement.

     Section 9.11. Merger and Integration. Except as specifically stated
                   ----------------------
otherwise herein, this Agreement and all the other Conveyance Papers set forth
the entire understanding of the parties relating to the subject matter hereof,
and all prior understandings, written or oral, are superseded by this Agreement
and all the other Conveyance Papers. This Agreement and the other Conveyance
Papers may not be modified, amended, waived or supplemented except as provided
herein.

     Section 9.12. Headings. The headings herein are for purposes of reference
                   --------
only and shall not otherwise affect the meaning or interpretation of any
provision hereof.

     Section 9.13. Schedules and Exhibits. The schedules and exhibits attached
                   ----------------------
hereto and referred to herein shall constitute a part of this Agreement and are
incorporated into this Agreement for all purposes.

                                     -25-
<PAGE>

     IN WITNESS WHEREOF, Buyer and RPA Sellers have caused this Agreement to be
duly executed by their respective officers as of the day and year first written
above.

                              SPIEGEL CREDIT CORPORATION III

                              Name:_____________________________
                              Title:

                              FIRST CONSUMERS NATIONAL BANK

                              Name:_____________________________
                              Title:

                              SPIEGEL ACCEPTANCE CORPORATION

                              Name:_____________________________
                              Title:

                                     -26-
<PAGE>

                                  SCHEDULE ONE
                                       to
                         RECEIVABLES PURCHASE AGREEMENT

     Accounts
     --------

     As contained on an appropriately Labeled Computer Record Delivered
     Contemporaneously with this Agreement.

     Aggregate Receivables as of the SMT Termination Date:       $____________

     Aggregate Principal Balance as of the SMT Termination Date:     $________

<PAGE>

                                 SCHEDULE TWO
                                      to
                        RECEIVABLES PURCHASE AGREEMENT

SAC's Chief Executive Office:

     400 West 9/th/ Street
     Suite 101A
     Wilmington, Delaware 19801

FCNB's Chief Executive Office:

     9300 S.W. Gemini Drive
     Beaverton Oregon 97005

Locations Of Books And Records:

     9300 S.W. Gemini Drive
     Beaverton, Oregon 97005

     800 Pasquinelli Drive
     Westmont, Illinois 60522

     3500 Lacey Road
     Downers Grove, Illinois 60515
<PAGE>

                                   EXHIBIT A
                                      to
                        RECEIVABLES PURCHASE AGREEMENT

                        FORM OF SUPPLEMENTAL CONVEYANCE
                        -------------------------------

     SUPPLEMENTAL CONVEYANCE No. ___ OF RECEIVABLES IN ADDITIONAL ACCOUNTS (the
"Supplemental Conveyance"), dated as of _____________, 200_, by and among FIRST
 -----------------------
CONSUMERS NATIONAL BANK, a national banking association ("FCNB"), SPIEGEL
                                                          ----
ACCEPTANCE CORPORATION III, a Delaware corporation ("SAC"; FCNB and SAC are
                                                     ---
collectively referred to herein as the "RPA Sellers"), and SPIEGEL CREDIT
                                        -----------
CORPORATION III, a Delaware corporation ("Buyer"), pursuant to the Receivables
                                          -----
Purchase Agreement referred to below.

                             W I T N E S S E T H :
                             - - - - - - - - - -

     WHEREAS, Buyer and RPA Sellers are parties to the Receivables Purchase
Agreement, dated as of [___________], 2000 ( the "Purchase Agreement");
                                                  ------------------

     WHEREAS, pursuant to Section 2.2 of the Purchase Agreement, (i) under
                          ------- ---
certain conditions, RPA Sellers are required to sell Receivables in Additional
Accounts; or (ii) RPA Sellers may designate and sell Additional Accounts to be
included as Accounts; or (iii) under certain circumstances, an Eligible Account
is to be automatically included as an Additional Account;

     WHEREAS, RPA Sellers now wish to sell the Receivables in the Additional
Accounts described on Schedule 1, whether now existing or hereafter created, to
                      -------- -
Buyer; and

     WHEREAS, Buyer is willing to accept such sale and conveyance subject to the
terms and conditions hereof;

     NOW THEREFORE, RPA Sellers and Buyer hereby agree as follows:

     1.   Defined Terms. Capitalized terms used in this Supplemental Conveyance
          -------------
have their respective meanings set forth in the Purchase Agreement, except that
"Addition Date" means, with respect to the Additional Accounts added pursuant to
 -------------
Section 2.2(a) of the Purchase Agreement and designated hereby, _____, 200_.
--------------

                                      A-1
<PAGE>

     "Notice Date" means, with respect to the Additional Accounts added pursuant
      -----------
to Section 2.2 of the Purchase Agreement and designated hereby, ____, 200_
   -----------
(which shall be a date on or before the fifth Business Day prior to the Addition
Date).

     2.   Designation of Additional Accounts. On or prior to the Addition Date,
in respect of Additional Accounts added pursuant to Section 2.2 of the Purchase
                                                    -----------
Agreement and on or before five Business Days after the first day of the
calendar month next succeeding the calendar month in which Additional Accounts
were added pursuant to Section 2.2(c), FCNB shall have delivered or caused to be
                       --------------
delivered to Buyer (or to the Trustee, if Buyer so directs) a computer file or
microfiche list containing a true and complete list of all charge accounts which
as of the Addition Date shall be deemed to be Additional Accounts, such
Additional Accounts being identified by account number and by Receivable balance
as of the Addition Date in respect of Additional Accounts added pursuant to
Section 2.2(a) of the Purchase Agreement or as of such fifth Business Day of the
--------------
month in respect of Additional Accounts added during the preceding month
pursuant to Section 2.2(c) of the Purchase Agreement. Such list shall be marked
            --------------
as Schedule 1 to this Supplemental Conveyance, delivered to Buyer as
   ----------
confidential and proprietary and, as of the Addition Date, shall be incorporated
into and made a part of this Supplemental Conveyance, the Purchase Agreement,
and any other Conveyance Paper.

     3.   Sale of Receivables. (a) For value received, each RPA Seller does
          -------------------
hereby sell, transfer, convey and assign to Buyer, without recourse, on and
after the Addition Date, all of such RPA Seller's right, title and interest in,
to and under the Receivables now existing or hereafter created in the Additional
Accounts designated on Schedule 1, all monies due or to become due with respect
                       ----------
thereto (including all Finance Charge Receivables), all Collections, Recoveries
and other proceeds hereof and Insurance Proceeds relating thereto.

     (b)  In connection with such sale and conveyance, each RPA Seller agrees
(i) to record and file at its own expense, any financing statement for the
purchase of accounts (as defined in Section 9-106 of the UCC as in effect in the
State of Illinois), with respect to the Receivables now existing and hereafter
created in the Additional Accounts designated hereby, meeting the requirements
of applicable state law and in such jurisdictions as are necessary to perfect
the sale of the Receivables from such RPA Seller to Buyer and the transfer of
such Receivables from Buyer to the Issuer, and (ii) to deliver a file-stamped
copy of such financing statements or other evidence of such filings (which may,
for purposes of this Section 3, consist of telephone confirmations of such
                     ---------
filings) to Buyer (or to the Trustee, if Buyer so directs) on or prior to the
date of this Supplemental Conveyance.

                                      A-2
<PAGE>

     (c)  In connection with such sale and conveyance, FCNB agrees, at its own
expense, on or prior to the date of this Supplemental Conveyance to indicate or
cause to be indicated in its books and records and in the computer files of the
Receivables as required by the Purchase Agreement that Receivables created in
connection with the Additional Accounts designated hereby have been sold to
Buyer in accordance with the Purchase Agreement and transferred by Buyer to the
Issuer for the benefit of the Noteholders.

     (d)  The parties acknowledge and agree that, as contemplated by Section 2.3
                                                                     -----------
of the Purchase Agreement, the Receivables to be transferred hereunder to Buyer
on the Addition Date shall be so transferred to Buyer by [FCNB] [SAC], and that
Receivables in the Additional Accounts designated hereby which are to be
transferred to Buyer after the Addition Date, shall be so transferred by FCNB.

     4.   Acceptance by Buyer. Buyer hereby acknowledges its acceptance of all
          -------------------
right, title and interest previously held by RPA Sellers in, to and under the
Receivables sold and conveyed hereby. Buyer further acknowledges that, prior to
or simultaneously with the execution and delivery of this Supplemental
Conveyance, FCNB delivered or caused to be delivered to Buyer or to the Trustee
the computer file or microfiche list described in Section 2 of this Supplemental
                                                  ---------
Conveyance.

     5.   Representations and Warranties of RPA Seller. Each RPA Seller, but
          --------------------------------------------
only as to itself and as to those Receivables, if any, transferred by it
hereunder, hereby severally (and not jointly) represents and warrants to Buyer
as of the Addition Date that:

     (a)  Legal, Valid and Binding Obligation. This Supplemental conveyance
          -----------------------------------
constitutes a legal, valid, and binding obligation of such RPA Seller,
enforceable against such RPA Seller in accordance with its terms, except as such
enforceability may be limited by Debtor Relief Laws and except as such
enforceability may be limited by general principles of equity (whether
considered in a suit or law or in equity);

     (b)  Schedule 1. Schedule 1 to this Supplemental Conveyance and the
          ----------  ----------
computer file or microfiche list delivered pursuant to Section 2 of this
                                                       ---------
Supplemental Conveyance is an accurate and complete listing in all material
respects of all the Additional Accounts as of the Addition Date and the
information contained therein with respect to the identify of such Additional
Accounts and the Receivables existing thereunder is true and correct in all
material respects as of the Addition Date;

     (c)  Eligibility of Accounts. Each Additional Account designated hereby is
          -----------------------
an Eligible Account;

                                      A-3
<PAGE>

     (d)  Selection Procedures. The Additional Accounts were assigned randomly
          --------------------
to Cycles by FCNB and no selection procedures believed by such RPA Seller to be
materially adverse to the interests of Buyer or its successors and assigns were
utilized in selecting the Additional Accounts designated hereby from available
Eligible Accounts;

     (e)  Insolvency. Such RPA Seller is not insolvent; and, after giving effect
          ----------
to the conveyance set forth in Section 3 of this Supplemental Conveyance, will
                               ---------
not be insolvent;

     (f)  Security Interest. This Supplemental Conveyance constitutes either (i)
          -----------------
a valid sale, assignment, and conveyance or, in the case of Accounts added
pursuant to Section 2.2(c) of the Purchase Agreement, confirmation of a valid
            --------------
sale, assignment, and conveyance to Buyer of all rights, title and assignment,
and conveyance to Buyer of all right, title and interest of such RPA Seller in,
to, and under the Receivables now existing and hereafter created in respect of
the Additional Accounts designated hereby, all monies due or to become due with
respect thereto (including all Finance Charge Receivables) together with all
Recoveries, Collections and other proceeds of such Receivables and Insurance
Proceeds relating thereto, or (ii) a grant of a security interest in such
Receivables, and such property will be held free and clear of any Lien of any
Person claiming through or under such RPA Seller except for Liens permitted
under Section 5.1(d) of the Purchase Agreement.
      --------------

     (g)  Reconfirmation of Representations and Warranties. All representations
          ------------------------------------------------
and warranties made by such RPA Seller pursuant to Section 4.1 of the Purchase
                                                   -----------
Agreement remain true and correct in all respects as of the Addition Date as if
made on such date.

     6.   Conditions Precedent. (a) The acceptance of Buyer set forth in Section
          --------------------                                           -------
4 above and the amendment of the Purchase Agreement set forth in Section 8 below
-                                                                ---------
are subject to the satisfaction by the RPA Sellers, on or prior to the Addition
Date, of the following conditions precedent:

          (i)  All information concerning the Additional Accounts provided or to
     be provided to Buyer shall be true and correct in all material respects as
     of the Addition Date with respect to Additional Accounts added pursuant to
     Section 2.2(a) of the Purchase Agreement and as of the fifth Business Day
     --------------
     after the first day of the calendar month occurring after any Additional
     Date arising under Section 2.2(c) of the Purchase Agreement;
                        --------------

          (ii) On or before each Addition Date with respect to Additional
     Accounts added pursuant to Section 2.2(a) of the Purchase Agreement: (i)
                                --------------
     FCNB shall have indicated or caused to be indicated in its books and
     records and in the computer files of the Receivables that Receivables
     created in

                                      A-4
<PAGE>

     respect of the Additional Accounts have been sold to Buyer in accordance
     with this Agreement for the benefit of the Noteholders, (ii) FCNB shall
     have delivered or caused to be delivered to Buyer (or to the Trustee, if so
     directed by Buyer) a computer file or microfiche list containing a true and
     correct list of all such Additional Accounts, identified by account number
     and by Receivable balance as of the Addition Date, and (iii) the RPA
     Sellers shall have substantially performed all other obligations required
     to be performed by the provisions of the Purchase Agreement and this
     Supplemental Conveyance;

          (iii) Each RPA Seller shall have recorded and filed, at its expense,
     all financing statements required to comply with Section 3(b) of this
                                                      ------------
     Supplemental Conveyance.

     (b)  The sale by the RPA Sellers set forth in Section 3 and the amendment
                                                   ---------
of the Purchase Agreement set forth in Section 8 are subject to the
                                       ---------
satisfaction by Buyer, on or prior to the Addition Date, of the following:

          (i)   All representations and warranties of Buyer contained in the
     Purchase Agreement shall be true and correct with the same effect as though
     such representations and warranties had been made on such date;

          (ii)  Payment or provisions for payment of the Purchase Price by
     Buyer in accordance with the provisions of Section 3 of the Purchase
                                                ---------
     Agreement; and

          (iii) All corporate and legal proceedings and all instruments in
     connection with the transactions contemplated by this Supplemental
     Conveyance shall be satisfactory in form and substance to the RPA Sellers,
     and the RPA Sellers shall have received from Buyer copies of all documents
     (including records of corporate proceedings) relevant to the transactions
     herein contemplated as the RPA Sellers may reasonably have requested.

     7.   Additional Information. Each RPA Seller shall have delivered to
          ----------------------
Buyer such information as was reasonably requested by Buyer to satisfy itself as
to the accuracy of the representation and warranty set forth in Section 5(e) of
                                                                ------------
this Supplemental Conveyance.

     8.   Amendment of the Purchase Agreement. The Purchase Agreement is hereby
          -----------------------------------
amended to provide that al references therein to the "Receivables Purchase
Agreement", to "this Agreement", and "herein" shall be deemed from and after the
Addition Date to be a dual reference to the Purchase Agreement a supplemented by
this Supplemental Conveyance. Except as expressly amended hereby, all of the
representations, warranties, terms, covenants, and conditions of the Purchase

                                      A-5
<PAGE>

Agreement shall remain unamended and shall continue to be, and shall remain, in
full force and effect in accordance with its terms and except as expressly
provided herein shall not constitute or be deemed to constitute a waiver of
compliance with or a consent to noncompliance with any term or provision of the
Purchase Agreement.

     9.   Counterparts. This Supplemental Conveyance 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 together shall constitute one and
the same instrument.

     10.  Governing Law. This Supplemental Conveyance shall be construed in
          -------------
accordance with the laws of the State of Illinois, 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-6
<PAGE>

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

                                              SPIEGEL CREDIT CORPORATION III

                                              By:______________________________
                                                    Title:

                                              FIRST CONSUMERS NATIONAL BANK

                                              By:______________________________
                                                    Title:

                                              SPIEGEL ACCEPTANCE CORPORATION

                                              By:_______________________________
                                                    Title:

                                      A-7
<PAGE>

                                  SCHEDULE 1
                                  ----------

                              ADDITIONAL ACCOUNTS
                              -------------------
<PAGE>

                                   SCHEDULE 2
                                   ----------
<PAGE>

                                   EXHIBIT B
                                      to
                        RECEIVABLES PURCHASE AGREEMENT

                             FORM OF RECONVEYANCE
                             --------------------

         RECONVEYANCE No. ____ OF RECEIVABLES (this "Reconveyance"), dated as of
                                                     ------------
_____________, 200__, by and between SPIEGEL CREDIT CORPORATION III, a Delaware
corporation, ("SCCIII") and __________, a ___________ ("RPA Seller"), pursuant
               ------                                   ----------
to the Receivables Purchase Agreement referred to below.

                             W I T N E S S E T H:
                             -------------------

         WHEREAS, SCCIII, RPA Seller, [First Consumers National Bank] and
[Spiegel Acceptance Corporation] are parties to the Receivables Purchase
Agreement, dated as of [_____], 2000 (the "Purchase Agreement");
                                           ------------------

         WHEREAS, pursuant to Section 6 of the Purchase Agreement (i) under
                              ---------
certain conditions, RPA Seller is required to repurchase Receivables in certain
Accounts, or (ii) SCCIII may designate from time to time certain Accounts for
repurchase;

         WHEREAS, pursuant to Section 6 of the Purchase Agreement SCIII wishes
                              ---------
to sell and convey to RPA Seller the Receivables from the Accounts listed on
Schedule 1 (the "Removed Accounts"); and
----------       ----------------

         WHEREAS, RPA Seller is willing to repurchase Receivables under the
Removed Accounts by payment, or provision for the payment, of the Repurchase
Price therefor pursuant to Section 6 of the Purchase Agreement;
                           ---------

         NOW THEREFORE, SCCIII and RPA Seller hereby agree as follows:

     1. Defined Terms. Capitalized terms used in this Reconveyance have their
        -------------
respective meanings set forth in the Purchase Agreement, except that "Repurchase
                                                                      ----------
Date" means, with respect to the Removed Accounts designated hereby,
----
____________, 200_.

     2. Designation of Removed Accounts. Within three Business Days after the
        -------------------------------
Repurchase Date, RPA Seller shall deliver or cause to be delivered to SCCIII a
computer file, microfiche or written list containing a true and complete list of
all Removed Accounts identified by account number and Receivable balance of such
Removed Accounts. Such list shall be marked as Schedule 1 to this Reconveyance
                                               ----------
and shall be incorporated into and made a part of this Reconveyance as of the
Repurchase Date and of the Purchase Agreement and other Conveyance Papers.

                                      B-1
<PAGE>

     3.  Conveyance of Receivables. (a) For value received, SCCIII does hereby
         -------------------------
sell, transfer, assign, and set-over to RPA Seller, without recourse, on and
after the Repurchase Date, all right, title and interest of SCCIII in, to, and
under the Receivables now existing and hereafter created in the Removed Accounts
designated hereby, all monies due or to become due with respect thereto
(including all Finance Charge Receivables), all proceeds thereof and Insurance
Proceeds relating thereto.

     (b) In connection with such transfer, SCCIII agrees to (and agrees to cause
Trustee to) execute and deliver to RPA Seller on or prior to the date of this
Reconveyance, a termination statement or partial release with respect to the
Receivables now existing and hereafter created in the Removed Accounts
designated hereby evidencing the sale and conveyance of the Receivables in the
Removed Accounts and the release of all liens or security interests thereon,
which shall meet the requirements of applicable state law and shall be filed in
such manner and in such jurisdictions as are necessary to evidence such sale and
conveyance and remove such lien.

     4.  Acceptance by RPA Seller. RPA Seller hereby acknowledges that, prior to
         ------------------------
or simultaneously with the execution and delivery of this Reconveyance, SCCIII
delivered or caused to be delivered to RPA Seller the computer file or
microfiche list described in Section 2 of this Reconveyance.
                             ---------

     5.  Representations and Warranties of SCCIII. SCCIII hereby represents and
         ----------------------------------------
warrants to RPA Seller as of the Repurchase Date:

     (a) Legal, Valid and Binding Obligation. This Reconveyance constitutes a
         -----------------------------------
legal, valid, and binding obligation of SCCIII, enforceable against SCCIII in
accordance with its terms, except as such enforceability may be limited by
Debtor Relief Laws and except as such enforceability may be limited by general
principles of equity (whether considered in a suit at law or in equity); and

     (b) Schedule 1. Schedule 1 to this Reconveyance and the computer file or
         ----------  ----------
microfiche list delivered pursuant to Section 2 of this Reconveyance is an
                                      ---------
accurate and complete listing in all material respects of all the Removed
Accounts as of the Repurchase Date and the information contained therein with
respect to the identity of such Removed Accounts and the Receivables existing
thereunder is true and correct in all material respects as of the Repurchase
Date;

     (c) Compliance with Servicing Agreement. SCCIII has effected a retransfer
         -----------------------------------
from the Issuer of the Receivables now existing or hereafter arising under the
Removed Accounts in compliance with the provisions of the Servicing Agreement.

     (d) Selection Procedures. In respect of Removed Accounts designated
         --------------------
pursuant to Section 6.2 of the Purchase Agreement, SCCIII and RPA Seller have
            -----------
mutually agreed as to the designation of the Removed Accounts.

                                      B-2
<PAGE>

     (e) Insolvency. As of the Repurchase Notice Date and as of the Repurchase
         ----------
Date, SCCIII is not insolvent and, after giving effect to the conveyance set
forth in Section 3 of this Reconveyance, SCCIII will not be insolvent.
         ---------

     6.  Conditions Precedent. (a) The amendment of the Purchase Agreement set
         --------------------
forth in Section 7 is subject to the satisfaction by SCCIII, on or prior to the
         ---------
Repurchase Date, of the following conditions precedent:

         (i)   All information concerning the Removed Accounts provided or to be
     provided to RPA Seller shall be true and correct in all material respects
     as of the Repurchase Date;

         (ii)  SCCIII shall have, and on or before the third Business Day after
     the Repurchase Date: (i) delivered to RPA Seller a computer file or
     microfiche list containing a true and correct list of all such Removed
     Accounts, identified by account number and by Receivable balance as of the
     Repurchase Date; and (ii) substantially performed all other obligations
     required to be performed by the provisions of this Reconveyance.

         (iii) SCCIII shall have delivered to RPA Seller the termination
     statements and partial releases required to be delivered in Section 3(b) of
                                                                 ------------
     this Reconveyance.

     (b) The amendment of the Purchase Agreement set forth in Section 7 is
                                                              ---------
subject to payment or provision for payment of the Repurchase Price in
accordance with the provisions of Section 6 of the Purchase Agreement on or
                                  ---------
prior to the Repurchase Date.

     7.  Amendment of the Purchase Agreement. The Purchase Agreement is hereby
         -----------------------------------
amended to provide that all references therein to the "Receivables Purchase
Agreement", to "this Agreement" and "herein" shall be deemed from and after the
Repurchase Date to be a dual reference to the Purchase Agreement as supplemented
by this Reconveyance. Except as expressly amended hereby, all of the
representations, warranties, terms, covenants and conditions of the Purchase
Agreement shall remain unamended and shall continue to be, and shall remain, in
full force and effect in accordance with its terms and except as expressly
provided herein shall not constitute or be deemed to constitute a waiver of
compliance with or a consent to non-compliance with any term or provision of the
Purchase Agreement.

     8.  Counterparts. This Reconveyance 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 together shall constitute one and the
same instrument.

                                      B-3
<PAGE>

     9. Governing Law. This Reconveyance shall be construed in accordance with
        -------------
the laws of the State of Illinois, 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.

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

                                                 SPIEGEL CREDIT CORPORATION III

                                                 By:____________________________
                                                          Title:

                                                 [FIRST CONSUMERS NATIONAL BANK]

                                                 By:____________________________
                                                          Title:

                                                 [SPIEGEL ACCEPTANCE
                                                 CORPORATION]

                                                 By:____________________________
                                                          Title:

_________

                                      B-4
<PAGE>

                                  SCHEDULE 1

                               REMOVED ACCOUNTS
                               ----------------
<PAGE>

                                   EXHIBIT C
                                      to
                        RECEIVABLES PURCHASE AGREEMENT

                         FORM OF SETTLEMENT STATEMENT

                        SPIEGEL CREDIT CORPORATION III

                        RECEIVABLES PURCHASE AGREEMENT

               Current Settlement Date: _______________, 2000___

     First Consumers National Bank ("FCNB"), Spiegel Acceptance Corporation
                                     ----
("SAC") and Spiegel Credit Corporation III ("Buyer"), pursuant to the
  ---                                        -----
Receivables Purchase Agreement (the "Purchase Agreement") dated as of [______],
                                     ------------------
20__, by and among FCNB, SAC and Buyer, do hereby agree and certify as follows:

     1.   Capitalized terms used in this Settlement Statement have their
          respective meanings in the Purchase Agreement. As used herein, the
          term "Subject Period" means the Monthly Period immediately preceding
                --------------
          the calendar month in which this Settlement Statement is delivered.
          This Settlement Statement is being delivered pursuant to Section 3.5
                                                                   -----------
          of the Purchase Agreement. References hereto to certain sections are
          references to the respective sections in the Purchase Agreement.

     2.   The date of this Settlement Statement is a Settlement Date under the
          Purchase Agreement.

A.   RECEIVABLES PURCHASED FROM FCNB AND PURCHASE PRICE FOR SUBJECT PERIOD

<TABLE>
     <S>                                                                                   <C>
     3.   The aggregate unpaid balance of Receivables conveyed to Buyer by FCNB
          and balance of Receivables created in Accounts pursuant to the
          Purchase Agreement during the Subject Period was equal to.......................  $__________________.

     4.   The portion of the amount shown in item 3 paid in cash during the
          Subject Period was equal to.....................................................  $__________________.

     5.   The portion of the amount shown in item 3 not paid in cash during the
          Subject Period (item 3 minus item 4) is equal to................................  $__________________.
</TABLE>

                                      C-1
<PAGE>

B.   RECEIVABLES PURCHASED FROM SAC AND PURCHASE PRICE FOR SUBJECT PERIOD

<TABLE>
    <S>                                                                            <C>
     6.   The aggregate unpaid balance of Receivables conveyed to Buyer by SAC
          pursuant to the Purchase Agreement during the Subject Period was equal
          to......................................................................  $_______________.

     7.   The portion of the amount shown in item 6 paid in cash during the
          Subject Period was equal to.............................................  $_______________.

     8.   The portion of the amount shown in item 6 not paid in cash during the
          Subject Period (item 6 minus item 7) is equal to........................  $_______________.
</TABLE>

C.   RECEIVABLES REPURCHASED BY FCNB AND REPURCHASE PRICE FOR SUBJECT
     PERIOD

<TABLE>
     <S>                                                                            <C>
     9.   The aggregate Repurchase Price of Receivables repurchased by FCNB
          pursuant to Section 6.1 or 6.2 of the Purchase Agreement during the
                      -----------    ---
          Subject Period (the "FCNB Repurchased Receivables") was equal to......    $_______________.
                               ----------------------------

     10.  The portion of the Repurchase Price for the FCNB Repurchased
          Receivables paid in cash during the Subject Period was equal to.......    $_______________.

     11.  The portion of the Repurchase Price for the FCNB Repurchased
          Receivables not paid in cash during the Subject Period (item 9 minus
          item 10) is equal to..................................................    $_______________.
</TABLE>

D.   RECEIVABLES REPURCHASED BY SAC AND REPURCHASE PRICE FOR SUBJECT
     PERIOD

<TABLE>
     <S>                                                                            <C>
     12.  The aggregate Repurchase Price of Receivables repurchased by SAC
          pursuant to Section 6.1 or 6.2 of the Purchase Agreement during the
                      -----------    ---
          Subject Period (the "SAC Repurchased Receivables") was
                               ---------------------------
          equal to..............................................................    $_______________.

     13.  The portion of the Repurchase Price for the SAC Repurchased
          Receivables paid in cash during the Subject Period was equal to.......    $_______________.
</TABLE>

                                      C-2
<PAGE>

<TABLE>
     <S>                                                                            <C>
     14.  The portion of the Repurchase Price for the SAC Repurchased
          Receivables not paid in cash during the Subject Period (item 12 minus
          item 13) is equal to.................................................     $_______________.
</TABLE>

     In witness whereof, the undersigned have duly executed and delivered this
Settlement Statement this ________ day of 200___.

                                       SPIEGEL CREDIT CORPORATION III

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

                                       FIRST CONSUMERS NATIONAL BANK

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

                                       SPIEGEL ACCEPTANCE CORPORATION

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

                                      C-3<PAGE>

                                                                     EXHIBIT 4.7

                          MBIA INSURANCE CORPORATION

                      FINANCIAL GUARANTY INSURANCE POLICY

                               December 19, 2000

                                                             Policy No. 33927(1)

Re:                  Spiegel Credit Card Master Note Trust $600,000,000 Class A
                     Series 2000-A Floating Rate Asset Backed Notes (the
                     "Notes")
                      -----

Insured Obligation:  Obligation of the Spiegel Credit Card Master Note Trust
                     (the "Issuer") to pay principal on the Series 2000-A Final
                           ------
                     Maturity Date, interest and the servicing fee on the Notes

Beneficiary:         The Bank of New York, as indenture trustee under the Master
                     Indenture and the Series 2000-A Indenture Supplement, as
                     defined below (together with any successor trustee duly
                     appointed and qualified, the "Indenture Trustee")
                                                   -----------------

     MBIA INSURANCE CORPORATION (the "Insurer"), for consideration received,
                                      -------
hereby unconditionally and irrevocably guarantees to the Indenture Trustee,
subject only to the terms of this Financial Guaranty Insurance Policy (the
"Policy"), payment of the Insured Obligation.  The Insured Obligation shall not
 ------
include any Excluded Amount. The Insurer agrees to pay to the Indenture Trustee
an amount equal to the sum of:  (a) in respect of each Distribution Date, the
amount equal to the sum of (i) the amount, if any, by which the Monthly Interest
to be paid on such Distribution Date exceeds the amount on deposit in the
Collection Account allocable to the Notes, and available for distribution in
payment of Monthly Interest pursuant to the Series 2000-A Indenture Supplement,
and (ii) if the Servicer is not an Affiliate of the Seller, the amount, if any,
by which the Monthly Servicing Fee allocable to the Notes for the preceding
Monthly Period exceeds the amount previously paid to the Servicer with respect
to the Monthly Servicing Fee for such Monthly Period; (b) in respect of the
Series 2000-A Final Maturity Date, an amount equal to the Note Principal Balance
after application of all amounts allocable to the Note Principal Balance
pursuant to the Series 2000-A Indenture Supplement; and (c) on the date due
hereunder, an amount equal to any Avoided Payment; provided, however, that no
                                                   -----------------
payment (other than any payment made in respect of an Avoided Payment) under
this Policy with respect
<PAGE>

to any Distribution Date or Series 2000-A Final Maturity Date shall exceed the
Policy Amount for such Distribution Date or Series 2000-A Final Maturity Date.
No payment under this Policy with respect to any Distribution Date or Series
2000-A Final Maturity Date will be made in respect of any Excluded Amount. The
Insurer's obligations under this Policy will be discharged to the extent funds
equal to the amounts described above are received by the Indenture Trustee,
whether or not such funds are properly applied by the Indenture Trustee.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Master Indenture dated as of December
1, 2000 (the "Master Indenture"), as supplemented by the Series 2000-A Indenture
              ----------------
Supplement dated as of December 1, 2000 (the "Series 2000-A Indenture
                                              -----------------------
Supplement") between the Issuer and the Indenture Trustee.
----------

     "Excluded Amount" means (a) shortfalls, if any, in amounts available to
      ---------------
make payments on the Notes attributable to the liability of the Issuer or the
Servicer for withholding taxes or any interest and penalties in respect of such
liability of the Issuer or Servicer, (b) payment of the Note Principal Balance
prior to the Series 2000-A Final Maturity Date and (c) payments of Excess
Interest.

     "Insolvency Proceeding" means the commencement, after the date hereof, of
      ---------------------
any bankruptcy, insolvency, readjustment of debt, reorganization, marshalling of
assets and liabilities or similar proceedings by or against the Seller, the
Servicer or the Issuer, the commencement, after the date hereof, of any
proceedings by or against the Seller, the Servicer or the Issuer for the winding
up or liquidation of its affairs, or the consent, after the date hereof, to the
appointment of a trustee, conservator, receiver or liquidator in any bankruptcy,
insolvency, readjustment of debt, reorganization, marshalling of assets and
liabilities or similar proceedings of or relating to the Seller, the Servicer or
the Issuer.

     "Policy Amount" means (a) in the case of any Distribution Date, the sum of
      -------------
(i) the Monthly Interest payable on such Distribution Date and (ii) the Monthly
Servicing Fee allocable to the Notes payable on such Distribution Date, provided
that the Servicer is not an Affiliate of the Seller; and (b) in the case of the
Series 2000-A Final Maturity Date, the Note Principal Balance (after giving
effect to all amounts allocable to the Note Principal Balance).

     "Qualified Maturity Agreement" has the meaning assigned to such term in the
      ----------------------------
Series 2000-A Indenture Supplement, provided that (i) it shall be a term of such
agreement that the Eligible Institution will have no access to any cash or
collateral unless and until its obligations are performed in full, and (ii) no
provision in such agreement shall have the effect of reducing the period of time
between the Expected Principal Distribution Date and the Series 2000-A Final
Maturity Date.

     Payment of amounts hereunder shall be made in immediately available funds
on the following basis: (a) with respect to payments of Monthly Interest or
Monthly Servicing Fees payable on a given Distribution Date, to the Indenture
Trustee for deposit in the Spread Account on the later of (x) 12:00 noon, New
York City time, on the second Business Day preceding the

                                      -2-
<PAGE>

Distribution Date and (y) 12:00 noon, New York City time, on the second Business
Day succeeding presentation to State Street Bank & Trust Company, N.A., in New
York, New York, as Fiscal Agent (the "Fiscal Agent") for the Insurer  or any
                   ------------
successor fiscal agent appointed by the Insurer (as hereinafter provided) of a
notice for payment in the form of Exhibit A hereto ("Notice for Payment"),
                                                     ------------------
appropriately completed and executed by the Indenture Trustee; and (b) with
respect to payment of the Note Principal Balance payable on the Series 2000-A
Final Maturity Date, to the Indenture Trustee for deposit in the Spread Account
on the later of (x) 12:00 noon, New York City time, on the second Business Day
preceding the Series 2000-A Final Maturity Date and (y) 12:00 noon, New York
City time, on the second Business Day next succeeding presentation to the Fiscal
Agent of a Notice for Payment, appropriately completed and executed by the
Indenture Trustee. A Notice for Payment under this Policy may be presented to
the Fiscal Agent on any Business Day following the Determination Date in respect
of which the Notice for Payment is being presented, in each case by (a) delivery
of the original Notice for Payment to the Fiscal Agent at its address set forth
below, or (b) facsimile transmission of the Notice for Payment to the Fiscal
Agent at its facsimile number set forth below. If presentation is made by
facsimile transmission, the Indenture Trustee shall (i) simultaneously confirm
transmission by telephone to the Fiscal Agent at its telephone number set forth
below, and (ii) as soon as reasonably practicable, deliver the original Notice
for Payment to the Fiscal Agent at its address set forth below. Any Notice for
Payment received by the Fiscal Agent after 1:00 p.m., New York City time, on a
Business Day, or on any day that is not a Business Day, will be deemed to be
received by the Fiscal Agent at 9:00 a.m., New York City time, on the next
succeeding Business Day.

     Subject to the foregoing, if the payment of any amount with respect to the
Insured Obligation is voided (a "Preference Event") under any applicable
                                 ----------------
bankruptcy, insolvency, receivership or similar law in an Insolvency Proceeding,
and as a result of such Preference Event, any  Noteholder is required to return
such voided payment, or any portion of such voided payment, made in respect of
any Note (an "Avoided Payment"), the Insurer will pay an amount equal to such
              ---------------
Avoided Payment, irrevocably, absolutely and unconditionally and without the
assertion of any defenses to payment, including fraud in inducement or fact or
any other circumstances that would have the effect of discharging a surety in
law or in equity, upon payment by such Noteholder of such Avoided Payment and
receipt by the Fiscal Agent from the Indenture Trustee on behalf of such
Noteholder of (x) a certified copy of a final order of a court or other
Governmental Authority exercising jurisdiction in such Insolvency Proceeding to
the effect that the Noteholder is required to return any such payment or portion
thereof prior to the Termination Date of this Policy because such payment was
voided under applicable law, with respect to which order the appeal period has
expired without an appeal having been filed (the "Final Order"), (y) an
                                                  -----------
assignment, substantially in the form attached hereto as Exhibit B, properly
completed and executed by such Noteholder irrevocably assigning to the Insurer
all rights and claims of such Noteholder relating to or arising under such
Avoided Payment, and (z) a Notice for Payment in the form of Exhibit A hereto
appropriately completed and executed by the Indenture Trustee.

                                      -3-
<PAGE>

     The Insurer shall make payments due in respect of Avoided Payments prior to
12:00 noon, New York City time, on the first to occur of (a) the fourth Business
Day following the Fiscal Agent's receipt of the documents required under clauses
(x) through (z) of the preceding paragraph, or (b) on the date of the Fiscal
Agent's receipt of the documents required under clauses (x) through (z),
provided that at least four business days prior to the date of the Fiscal
Agent's receipt of such documents, the Fiscal Agent received written notice,
specifying the date of delivery, that such documents were to be delivered on the
date on which such documents were received by the Fiscal Agent. Any such
documents and/or written notice received by the Fiscal Agent after 1:00 p.m.,
New York City time, on any Business Day or on any day that is not a Business Day
shall be deemed to have been received by the Fiscal Agent prior to 1:00 p.m. on
the next succeeding Business Day. All payments made by the Insurer hereunder on
account of any Avoided Payment shall be made to the receiver or the trustee in
bankruptcy named in the Final Order on behalf of the Noteholder and not to the
Indenture Trustee or any Noteholder directly unless such Noteholder has returned
such Avoided Payment to such receiver or trustee in bankruptcy, in which case
such payment will be disbursed to the Indenture Trustee for the benefit of the
Noteholder entitled to such payment upon proof of such payment reasonably
satisfactory to the Insurer.

     If any Notice for Payment received by the Fiscal Agent is not in proper
form, is not properly completed, executed or delivered, or is otherwise
insufficient for the purpose of making a claim hereunder, it shall be deemed not
to have been received by the Fiscal Agent, and the Insurer or the Fiscal Agent,
as the case may be, shall promptly so advise the Indenture Trustee, and the
Indenture Trustee may submit an amended Notice for Payment.

     Payments due hereunder unless otherwise stated herein will be disbursed by
the Fiscal Agent to the Indenture Trustee on behalf of the Noteholders by wire
transfer of immediately available funds in the amount of such payment, less, in
respect of Avoided Payments, any amounts held by the Indenture Trustee for the
payment of such Avoided Payments and legally available therefor.  Upon such
disbursement by wire transfer of the payments due hereunder by the Fiscal Agent
to the Indenture Trustee on behalf of the Noteholders, the Insurer's obligations
under the Policy shall be discharged.

     The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent
shall in no event be liable to the Noteholders for any acts of the Fiscal Agent
or any failure of the Insurer to deposit or cause to be deposited sufficient
funds to make payments due under this Policy.

     The Insurer shall be subrogated to the rights of each Noteholder to receive
payments under the Series 2000-A Indenture Supplement to the extent of any
payment by the Insurer hereunder.

     The Insurer hereby waives and agrees not to assert any and all rights to
require the Indenture Trustee to make demand on or to proceed against any
person, party or security prior to the Indenture Trustee demanding payment under
this Policy.

                                      -4-
<PAGE>

     No defenses, set-offs and counterclaims of any kind available to the
Insurer so as to deny payment of any amount due in respect of this Policy will
be valid and the Insurer hereby waives and agrees not to assert any and all such
defenses, set-offs and counterclaims, including, without limitation, any such
rights acquired by subrogation, assignment or otherwise. Any rights of
subrogation acquired by the Insurer as a result of any payment made under this
Policy shall, in all respects, be subordinate and junior in right of payment to
the prior indefeasible payment in full of all amounts due the Indenture Trustee
on account of payments due under the Notes.

     This Policy is neither transferable nor assignable, in whole or in part,
except to a successor trustee duly appointed and qualified under the Indenture.
All notices, presentations, transmissions, deliveries and communications made by
the Indenture Trustee to the Insurer with respect to this Policy shall
specifically refer to the number of this Policy and shall be made to the Insurer
at:

          MBIA Insurance Corporation
          113 King Street
          Armonk, New York 10504
          Attention: Insured Portfolio Management, Structured Finance
          Telephone:  (914) 273-4545
          Facsimile:  (914) 765-3163

or such other address, telephone number or facsimile number as the Insurer may
designate to the Indenture Trustee in writing from time to time. Each such
notice, presentation, transmission, delivery and communication shall be
effective only upon actual receipt by the Insurer.

     Any notice hereunder delivered to the Fiscal Agent may be made at the
address listed below for the Fiscal Agent or such other address as the Insurer
shall specify in writing to the Indenture Trustee.

     The notice address of the Fiscal Agent is 61 Broadway, 15th Floor, New
York, New York 10006 Attention: Municipal Registrar and Paying Agency, or such
other address as the Fiscal Agent shall specify to the Indenture Trustee in
writing.

     The obligations of the Insurer under this Policy are irrevocable, primary,
absolute and unconditional (except as expressly provided herein) and neither the
failure of the Seller, the Servicer, the Indenture Trustee or any other person
to perform any covenant or obligation in favor of the Insurer (or otherwise),
nor the failure or omission to make a demand permitted hereunder, nor the
commencement of any bankruptcy, debtor or other insolvency proceeding by or
against the Indenture Trustee, the Seller, the Servicer or any other person
shall in any way affect or limit the Insurer's obligations under this Policy. If
a successful action or proceeding to enforce this Policy is brought by the
Indenture Trustee, the Indenture Trustee shall be entitled to recover from the
Insurer costs and expenses reasonably incurred, including without limitation
reasonable fees and expenses of counsel.

                                      -5-
<PAGE>

     There shall be no acceleration payment due under this Policy unless such
acceleration is at the sole option of the Insurer.

     This Policy and the obligations of the Insurer hereunder shall terminate on
the date (the "Termination Date") which is the earliest of the following:  (a)
               ----------------
the Series 2000-A Final Maturity Date, (b) the date of funding under any
Qualified Maturity Agreement, or (c) the date on which all amounts required to
be paid to the Noteholders have been paid in full, provided that, this Policy
                                                   -------------
shall not terminate prior to the date on which all amounts payable to the
Insurer under the Insurance Agreement shall have been paid, provided further
                                                            ----------------
that, if any Insolvency Proceeding is existing by or against the Seller, the
----
Servicer or the Issuer, then this Policy and the Insurer's obligations hereunder
shall terminate on the date of the conclusion or dismissal of such Insolvency
Proceeding without continuing jurisdiction by the court in such Insolvency
Proceeding, and provided further that, and notwithstanding anything herein to
                ---------------------
the contrary, this Policy shall not terminate prior to the date on which the
Insurer has made all payments required to be made under the terms of this Policy
in respect of Avoided Payments.

     All payments made hereunder by the Insurer shall be made with the Insurer's
own funds. The payment by the Issuer or the Insurer to the Indenture Trustee of
any amount guaranteed by the Insurer under the first paragraph of this Policy,
and the payment by the Insurer of any Avoided Payment after the occurrence of a
Preference Event shall constitute "payments" for all purposes under this Policy.
                                   --------
In no event shall any payment be made under this Policy on account of (a) the
failure of the Indenture Trustee to deliver the proceeds of any such payment to
any Noteholder or the Servicer or (b) the failure of any such Noteholder or the
Servicer to claim any such proceeds from the Indenture Trustee.

     This Policy is not covered by the property/casualty insurance fund
specified in Article Seventy-Six of the New York State insurance law.

     This Policy sets forth in full the undertaking of the Insurer, and shall
not, except with the prior written consent of the Indenture Trustee and the
Insurer or otherwise in accordance with the express terms hereof, be modified,
altered or affected by any other agreement or instrument, including any
modification or amendment thereto and may not be canceled or revoked by the
Insurer prior to the Termination Date.

     This Policy shall be returned to the Insurer by the Indenture Trustee on
the Termination Date.

     THIS POLICY SHALL BE CONSTRUED, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATION LAW) OR THE APPLICATION OF THE
LAWS OF ANY OTHER JURISDICTION.

                           [Signature Page Follows]

                                      -6-
<PAGE>

     IN WITNESS WHEREOF, the Insurer has caused this Policy to be executed on
the date first written above.

                              MBIA INSURANCE CORPORATION

                              By: _______________________
                                  President

                              By: _______________________
                                  Assistant Secretary

                                      -7-
<PAGE>

Exhibit A to Financial Guaranty Insurance Policy, Number 33927(1)
MBIA Insurance Corporation
113 King Street
Armonk, New York 10504
Attention:  Insured Portfolio Management, Structured Finance

                              NOTICE FOR PAYMENT
           UNDER FINANCIAL GUARANTY INSURANCE POLICY NUMBER 33927(1)

     The Bank of New York, as Indenture Trustee (the "Indenture Trustee"),
                                                      -----------------
hereby certifies as follows to MBIA Insurance Corporation (the "Insurer") with
                                                                -------
reference to that certain Financial Guaranty Insurance Policy, Number 33927(1),
dated December 19, 2000 (the "Policy"), issued by the Insurer in favor of the
                              ------
Indenture Trustee under the Master Indenture, dated as of December 1, 2000 (the
"Master Indenture") between Spiegel Credit Card Master Note Trust (the "Issuer")
 ----------------                                                       ------
and the Indenture Trustee, as supplemented by the Series 2000-A Indenture
Supplement, dated as of December 1, 2000 (the "Series 2000-A Indenture
                                               -----------------------
Supplement", and together with the Master Indenture, the "Indenture"), among the
----------                                                ---------
Issuer and the Indenture Trustee:

     1.  The Indenture Trustee is the Indenture Trustee under the Indenture and
the Beneficiary under the Policy.

     2.  The Indenture Trustee is entitled to make a demand under the Policy
[pursuant to Section 4.16 of the Series 2000-A Indenture Supplement] [as a
result of the occurrence of a Preference Event as defined in the Policy].

     [For a Notice for Payment in respect of a Distribution Date use the
following paragraphs 3, 4 and 5]

     3.  This notice relates to the [insert date] Distribution Date. The Policy
Amount, as specified to the Indenture Trustee by the Servicer, for such
Distribution Date is $______. The amount demanded by this notice does not exceed
such Policy Amount.

     4.  The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount by which the sum of (i) Monthly Interest allocable to
the Notes for such Distribution Date (as defined in the Policy) and (ii) the
Monthly Servicing Fee allocable to the Notes (provided that the Servicer is not
an Affiliate of the Seller) for such Distribution Date exceeds Available Finance
Charge Collections, Reallocated Principal Collections and Available Spread
Account Amounts that are available to cover such amounts for such Distribution
Date.

     5.  The amount demanded is to be paid in immediately available funds to the
Collection Account at _______________; account number ________________.

     [For a Notice for Payment in respect of the Series 2000-A Final Maturity
Date use the following paragraphs 6, 7 and 8]

                                      -8-
<PAGE>

     6.   This notice relates to the Series 2000-A Final Maturity Date.  The
Policy Amount, as specified to the Indenture Trustee by the Servicer, for such
Series 2000-A Final Maturity Date is $______. The amount demanded by this notice
does not exceed such Policy Amount.

     7.   The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount of the Note Principal Balance after application of
all amounts to the Note Principal Balance.

     8.   The amount demanded is to be paid in immediately available funds to
the Collection Account at _______________; account number ________________.

     [For a Notice for Payment relating to both a Distribution Date and the
Series 2000-A Final Maturity Date, use the following paragraphs 9, 10, 11, 12,
,13.]

     9.   This notice relates to the [insert date] Distribution Date. The Policy
Amount, as specified to the Indenture Trustee by the Servicer, for such
Distribution Date is $______. The amount demanded by this notice does not exceed
such Policy Amount.

     10.  The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount by which the sum of (i) Monthly Interest allocable to
the Notes for such Distribution Date (as defined in the Policy) and (ii) the
Monthly Servicing Fee allocable to the Notes (provided that the Servicer is not
an Affiliate of the Seller) for such Distribution Date exceeds Available Finance
Charge Collections, Reallocated Principal Collections and Available Spread
Account Amounts that are available to cover such amounts for such Distribution
Date.

     11.  This notice relates to the Series 2000-A Final Maturity Date. The
Policy Amount, as specified to the Indenture Trustee by the Servicer, for such
Series 2000-A Final Maturity Date is $______. The amount demanded by this notice
does not exceed such Policy Amount.

     12.  The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount of the Note Principal Balance after application of
all amounts to the Note Principal Balance.

     13.  The amount demanded is to be paid in immediately available funds to
the Collection Account at _______________; account number ________________.

     [For a Notice for Payment in respect of an Avoided Payment use the
following paragraphs 14 and 15.]

     14.  The Indenture Trustee hereby represents and warrants, based upon
information available to it, that (i) the amount entitled to be drawn under the
Policy on the date hereof in respect of Avoided Payments is [$________ ] (the
"Avoided Payment Amount"), (ii) or each Noteholder with respect to which the
-----------------------
drawing is being made under the Policy, as the case may be, has paid or
simultaneously with such draw on the Policy will pay its pro rata share of such
Avoided Payment, and (iii) the documents required by the Policy to be delivered
in connection

                                      -9-
<PAGE>

with such Avoided Payment and Avoided Payment Amount have previously been
presented to the Insurer or are attached hereto.

     15.  The amount demanded is to be paid in immediately available funds by
wire transfer to [__________].

     [For a Notice for Payment relating to both an Avoided Payment and a
Distribution Date, use the following paragraphs 16, 17, 18 and 19.]

     16.  This notice relates to the [insert date] Distribution Date. The Policy
Amount, as specified to the Indenture Trustee by the Servicer, for such
Distribution Date is $______. The amount demanded by this notice does not exceed
such Policy Amount.

     17.  The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount by which the sum of (i) Monthly Interest allocable to
the Notes for such Distribution Date (as defined in the Policy) and (ii) the
Monthly Servicing Fee allocable to the Notes (provided that the Servicer is not
an Affiliate of the Seller) for such Distribution Date exceeds Available Finance
Charge Collections, Reallocated Principal Collections and Available Spread
Account Amounts that are available to cover such amounts for such Distribution
Date.

     18.  The Indenture Trustee hereby represents and warrants, based upon
information available to it, that (i) the amount entitled to be drawn under the
Policy on the date hereof in respect of Avoided Payments is [$________ ] (the
"Avoided Payment Amount"), (ii) each Noteholder with respect to which the
 ----------------------
drawing is being made under the Policy, as the case may be, has paid or
simultaneously with such draw on the Policy will pay its pro rata share of such
Avoided Payment, and (iii) the documents required by the Policy to be delivered
in connection with such Avoided Payment and Avoided Payment Amount have
previously been presented to the Insurer or are attached hereto.

     19.  The amount demanded is to be paid in immediately available funds by
wire transfer to [_______________].

     [For a Notice for Payment relating to both an Avoided Payment and the
Series 2000-A Final Maturity Date, use the following paragraphs 20, 21, 22 and
23.]

     20.  This notice relates to the Series 2000-A Final Maturity Date. The
Policy Amount, as specified to the Indenture Trustee by the Servicer, for such
Series 2000-A Final Maturity Date is $______. The amount demanded by this notice
does not exceed such Policy Amount.

     21.  The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount of the Note Principal Balance after application of
all amounts to the Note Principal Balance.

     22.  The Indenture Trustee hereby represents and warrants, based upon
information available to it, that (i) the amount entitled to be drawn under the
Policy on the date hereof in

                                      -10-
<PAGE>

respect of Avoided Payments is [$________ ] (the "Avoided Payment Amount"), (ii)
                                                  ----------------------
each Noteholder with respect to which the drawing is being made under the
Policy, as the case may be, has paid or simultaneously with such draw on the
Policy will pay its pro rata share of such Avoided Payment, and (iii) the
documents required by the Policy to be delivered in connection with such Avoided
Payment and Avoided Payment Amount have previously been presented to the Insurer
or are attached hereto.

     23.  The amount demanded is to be paid in immediately available funds by
wire transfer to [_______________].

     [For a Notice for Payment relating to an Avoided Payment, the Series 2000-A
Final Maturity Date and a Distribution Date, use the following paragraphs 24,
25, 26, 27, 28 and 29.]

     24.  This notice relates to the [insert date] Distribution Date. The Policy
Amount, as specified to the Indenture Trustee by the Servicer, for such
Distribution Date is $______. The amount demanded by this notice does not exceed
such Policy Amount.

     25.  The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount by which the sum of (i) Monthly Interest allocable to
the Notes for such Distribution Date (as defined in the Policy) and (ii) the
Monthly Servicing Fee allocable to the Notes (provided that the Servicer is not
an Affiliate of the Seller) for such Distribution Date exceeds Available Finance
Charge Collections, Reallocated Principal Collections and Available Spread
Account Amounts that are available to cover such amounts for such Distribution
Date.

     26.  This notice relates to the Series 2000-A Final Maturity Date. The
Policy Amount, as specified to the Indenture Trustee by the Servicer, for such
Series 2000-A Final Maturity Date is $______. The amount demanded by this notice
does not exceed such Policy Amount.

     27.  The Indenture Trustee demands payment of $___________ which is an
amount equal to the amount of the Note Principal Balance after application of
all amounts to the Note Principal Balance.

     28.  The Indenture Trustee hereby represents and warrants, based upon
information available to it, that (i) the amount entitled to be drawn under the
Policy on the date hereof in respect of Avoided Payments is [$________ ] (the
"Avoided Payment Amount"), (ii) each Noteholder with respect to which the
 ----------------------
drawing is being made under the Policy, as the case may be, has paid or
simultaneously with such draw on the Policy will pay its pro rata share of such
Avoided Payment, and (iii) the documents required by the Policy to be delivered
in connection with such Avoided Payment and Avoided Payment Amount have
previously been presented to the Insurer or are attached hereto.

     29.  The amount demanded is to be paid in immediately available funds by
wire transfer to [_______________].

                                      -11-
<PAGE>

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to them in the Master Indenture or the Series 2000-A
Indenture Supplement, as the context may require.

     IN WITNESS WHEREOF, this notice has been executed this ___ day
of_____________

                              THE BANK OF NEW YORK, as
                              Indenture Trustee

                              By: ______________________________
                                         Authorized Officer

                                      -12-
<PAGE>

Exhibit B to Financial Guaranty Insurance Policy, Number 33927(1)

                              Form of Assignment

Reference is made to the Financial Guaranty Insurance Policy No. 33927(1), dated
December 19, 2000 (the "Policy"), issued by MBIA Insurance Corporation (the
                        ------
"Insurer") relating to the $600,000,000 Spiegel Credit Card Master Note Trust
 -------
Class A Series 2000-A Floating Rate Asset Backed Notes.  Unless otherwise
defined herein, capitalized terms used in this Assignment shall have the
meanings assigned thereto in the Policy or incorporated by reference therein. In
connection with the Avoided Payment of [$______________] paid by the undersigned
(the "Holder") on [_______] and the payment by the Insurer in respect of such
      ------
Avoided Payment pursuant to the Policy, the Holder hereby irrevocably and
unconditionally, without recourse, representation or warranty (except as
provided below), sells, assigns, transfers, conveys and delivers all of such
Holder's right, title and interest in and to any rights or claims, whether
accrued, contingent or otherwise, that the Holder now has or may hereafter
acquire, against any person relating to, arising out of or in connection with
such Avoided Payment. The Holder represents and warrants that such claims and
rights are free and clear of any lien or encumbrance created or incurred by such
Holder./1/

                                      _________________________
                                      Holder of Certificate

___________________________

/1/  In the event that the terms of this form of assignment are reasonably
determined to be insufficient solely as a result of a change of law or
applicable rules after the date of the Policy to fully vest all of the Holder's
right, title and interest in such rights and claims, the Holder and MBIA shall
agree on such other form as is reasonably necessary to effect such assignment,
which assignment shall be without recourse, representation or warranty except as
provided above.

                                      -13-

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