Document:

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                                                                   Exhibit 10.36

                      SPIEGEL CREDIT CARD MASTER NOTE TRUST

                                     Issuer,

                                       and

                              THE BANK OF NEW YORK

                                Indenture Trustee

                       SERIES 2001-A INDENTURE SUPPLEMENT

                            Dated as of July 19, 2001

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                                TABLE OF CONTENTS

ARTICLE I      Creation of the Series 2001-A Notes.............................1
               Section  1.1    Designation.....................................1

ARTICLE II     Definitions.....................................................1
               Section  2.1    Definitions.....................................1

ARTICLE III    Servicing Fee..................................................12
               Section  3.1    Servicing Compensation.........................12

ARTICLE IV     Rights of Series 2001-A Noteholders and Allocation and
               Application of Collections.....................................13
               Section  4.1    Collections and Allocations....................13
               Section  4.2    Determination of Monthly Interest..............15
               Section  4.3    Determination of Monthly Principal.............16
               Section  4.4    Application of Available Finance Charge
                               Collections and Available Principal
                               Collections....................................16
               Section  4.5    Investor Charge-Offs...........................18
               Section  4.6    Reallocated Principal Collections..............19
               Section  4.7    Excess Finance Charge Collections..............19
               Section  4.8    Shared Principal Collections...................19
               Section  4.9    Principal Accumulation Account.................20
               Section  4.10   Reserve Account................................21
               Section  4.11   [Reserved].....................................23
               Section  4.12   Determination of LIBOR.........................24
               Section  4.13   Investment Instructions........................24
               Section  4.14   Controlled Accumulation Period.................24
               Section  4.15   Suspension of Controlled Accumulation
                               Period.........................................25
               Section  4.16   Insurance Policies.............................27
               Section  4.17   Swap...........................................27

ARTICLE V      Delivery of Series 2001-A Notes; Distributions; Reports to
               Series 2001-A Noteholders......................................28
               Section  5.1    Delivery and Payment for the Series 2001-A
                               Notes..........................................28
               Section  5.2    Distributions..................................28
               Section  5.3    Reports and Statements to Series 2001-A
                               Noteholders....................................29

                                       i

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ARTICLE VI     Series 2001-A Pay Out Events and Events of Default.............30
               Section  6.1    Series 2001-A Pay Out Events...................30
               Section  6.2    Series 2001-A Events of Default................31
               Section  6.3    Declarations of Default........................32

ARTICLE VII    Redemption of Series 2001-A Notes; Final Distributions;
               Series Termination.............................................33
               Section  7.1    Optional Redemption of Series 2001-A
                               Notes; Final Distributions.....................33
               Section  7.2    Series Termination.............................34

ARTICLE VIII   Miscellaneous Provisions.......................................34
               Section  8.1    Ratification of Indenture; Amendments..........34
               Section  8.2    Form of Delivery of the Series 2001-A
                               Notes..........................................34
               Section  8.3    Counterparts...................................34
               Section  8.4    GOVERNING LAW..................................35
               Section  8.5    Limitation of Liability........................35
               Section  8.6    Rights of the Indenture Trustee................35
               Section  8.7    Third Party Beneficiary........................35
               Section  8.8    Inconsistency..................................35
               Section  8.9    Collateral Series Supplement...................35
               Section  8.10   Increase of Collateral Amount..................35
               Section  8.11   Additional Representations and Warranties......36

                                       ii

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                                    EXHIBITS

EXHIBIT A   FORM OF CLASS A NOTE

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

EXHIBIT C   FORM OF MONTHLY STATEMENT

EXHIBIT D   FORM OF MONTHLY SERVICER'S
            CERTIFICATE

EXHIBIT E   FORM OF SWAP

EXHIBIT F   INSURANCE AGREEMENT DEFINITIONS

EXHIBIT G   SECTION 2.05 OF INSURANCE AGREEMENT (SPREAD
            ACCOUNT)

EXHIBIT H   SECTION 5.01 OF INSURANCE AGREEMENT
            (INSURANCE AGREEMENT PAY OUT EVENTS)

                                    SCHEDULES

SCHEDULE I  PERFECTION REPRESENTATIONS, WARRANTIES AND
            COVENANTS

                                       iii

<PAGE>

          SERIES 2001-A INDENTURE SUPPLEMENT, dated as of July 19, 2001 (the
     "Indenture Supplement"), between SPIEGEL CREDIT CARD MASTER NOTE TRUST, a
      --------------------
     trust organized and existing under the laws of the State of Illinois
     (herein, the "Issuer" or the "Trust"), and THE BANK OF NEW YORK, a banking
                   ------          -----
     corporation organized and existing under the laws of the State of New York,
     not in its individual capacity, but solely as indenture trustee (herein,
     together with its successors in the trusts thereunder as provided in the
     Master Indenture referred to below, the "Indenture Trustee") under the
                                              -----------------
     Master Indenture, dated as of December 1, 2000 (the "Indenture") between
                                                          ---------
     the Issuer and the Indenture Trustee (the Indenture, together with this
     Indenture Supplement, the "Agreement").
                                ---------

          Pursuant to Section 2.12 of the Indenture, the Seller may direct the
                      ------------
     Issuer to issue one or more Series of Notes. The Principal Terms of this
     Series are set forth in this Indenture Supplement to the Indenture.

                                    ARTICLE I

                       Creation of the Series 2001-A Notes
                       -----------------------------------

          Section 1.1 Designation.
                      -----------

          (a) There is hereby created and designated a Series of Notes to be
     issued pursuant to the Indenture and this Indenture Supplement to be known
     as "Spiegel Credit Card Master Note Trust, Series 2001-A" or the "Series
         ----------------------------------------------------          ------
     2001-A Notes." The Series 2001-A Notes shall be issued in a single Class,
     ------------
     known as the "Class A Series 2001-A Floating Rate Asset Backed Notes."
                   ------------------------------------------------------

          (b) Series 2001-A shall be included in Group One and shall be a
     Principal Sharing Series. Series 2001-A shall be an Excess Allocation
     Series with respect to Group One only. Series 2001-A shall not be
     subordinated to any other Series.

                                   ARTICLE II

                                   Definitions
                                   -----------

     Section 2.1 Definitions.
                 -----------

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

          "Accumulation Period Factor" means, for any Monthly Period, a
           --------------------------
     fraction, the numerator of which is equal to the sum of the Initial
     Collateral Amounts of all outstanding Series designated as Principal
     Sharing Series, and the denominator of which is equal to the sum of (a) the
     Initial Collateral Amount and (b) the Initial

                                       1

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     Collateral Amounts of all outstanding Series designated as Principal
     Sharing Series (other than Series 2001-A) which are not expected to be in
     their revolving periods; provided, however, that this definition may be
                              --------  -------
     changed at any time if the Rating Agency Condition is satisfied.

          "Accumulation Period Length" is defined in subsection 4.14.
           --------------------------                ---------------

          "Accumulation Shortfall" means: (a) for the first Distribution Date
           ----------------------
     during the Controlled Accumulation Period, zero; and (b) thereafter, for
     any Distribution Date during the Controlled Accumulation Period, the
     excess, if any, of the Controlled Deposit Amount for the previous
     Distribution Date over the amount deposited into the Principal Accumulation
     Account pursuant to subsection 4.4(c)(i) for the previous Distribution
                         --------------------
     Date.

          "Additional Interest" is defined in Section 4.2.
           -------------------                -----------

          "Allocation Percentage" means, on any date of determination, the
           ---------------------
     percentage equivalent of a fraction:

               (a) the numerator of which shall be the Collateral Amount,
          determined:

                    (i) for Principal Collections during the Revolving Period
               and for Finance Charge Collections and Default Amounts at any
               time, at the end of the last day of the prior Monthly Period (or,
               in the case of the Monthly Period in which the Closing Date
               occurs, on the Closing Date); provided, however, that if the
                                             --------  -------
               Rapid Amortization Period is extended past the Series 2001-A
               Final Maturity Date as a result of there being amounts owed to
               the Insurer or the Counterparty, then during that extended period
               the numerator for Finance Charge Collections and Default Amounts
               shall equal the numerator in effect for the last Monthly Period
               prior to the Series 2001-A Final Maturity Date;

                    (ii) for Principal Collections during the Rapid Amortization
               Period and the Controlled Accumulation Period, on the last day of
               the Revolving Period; provided, however, that if Series 2001-A is
                                     --------  -------
               paired with a Paired Series and a Rapid Amortization Period
               commences for such Paired Series, the Seller may, by written
               notice to the Indenture Trustee, the Servicer and the Rating
               Agencies, but only after satisfying the Rating Agency Condition,
               designate a different numerator for such fraction, which
               numerator shall not be less than the Collateral Amount as of the
               last day of the Revolving Period for the Paired Series; and

               (b) the denominator of which shall be the greater of (x) the sum
          of the Aggregate Principal Receivables and the amount on deposit in
          the Excess

                                       2

<PAGE>

          Funding Account (exclusive of any investment earnings on such amount)
          in each case as of the end of the Business Day preceding such date of
          determination and (y) the sum of the numerators used to calculate the
          Allocation Percentages for allocations with respect to Finance Charge
          Collections, Principal Collections or Default Amounts, as applicable,
          for all outstanding Series or "Series" under (and as defined in) the
          Pooling and Servicing Agreement (other than Series represented by the
          Collateral Certificate) on such date of determination.

          "Available Finance Charge Collections" means, for any Monthly Period,
           ------------------------------------
     an amount equal to the sum of (a) the Investor Finance Charge Collections
     for such Monthly Period, plus (b) any Net Swap Receipts for the related
     Distribution Date, plus (c) the Excess Finance Charge Collections allocated
     to Series 2001-A for such Monthly Period, plus (d) Principal Accumulation
     Investment Proceeds, if any, with respect to the related Distribution Date,
     plus (e) amounts, if any, to be withdrawn from the Reserve Account which
     will be deposited into the Collection Account on the related Distribution
     Date to be treated as Available Finance Charge Collections pursuant to
     subsection 4.10(d).
     ------------------

          "Available Principal Collections" means, for any Monthly Period, an
           -------------------------------
     amount equal to the sum of (a) the Investor Principal Collections for such
     Monthly Period minus (b) the amount of Reallocated Principal Collections
     with respect to such Monthly Period which pursuant to Section 4.6 are
                                                           -----------
     required to be applied on the related Distribution Date, plus (c) any
     Shared Principal Collections with respect to other Principal Sharing Series
     (including any amounts on deposit in the Excess Funding Account that are
     allocated to Series 2001-A pursuant to the Agreement for application as
     Shared Principal Collections), plus (d) the aggregate amount to be treated
     as Available Principal Collections pursuant to subsections 4.4(a)(iii),
                                                    -----------------------
     (iv) and (viii) for the related Distribution Date.
     ----     ------

          "Available Reserve Account Amount" means, for any Distribution Date,
           --------------------------------
     the lesser of (a) the amount on deposit in the Reserve Account on such date
     (after taking into account any interest and earnings retained in the
     Reserve Account pursuant to subsection 4.10(b) on such date, but before
                                 ------------------
     giving effect to any deposit made or to be made pursuant to subsection
                                                                 ----------
     4.4(a)(vi) to the Reserve Account on such date) and (b) the Required
     ----------
     Reserve Account Amount.

          "Available Spread Account Amount" is defined in the Insurance
           -------------------------------
     Agreement.

          "Base Rate" is defined in the Insurance Agreement.
           ---------

          "Class A Noteholder" means the Person in whose name a Class A Note is
           ------------------
     registered in the Note Register.

                                       3

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

          "Closing Date" means July 19, 2001.
           ------------

          "Collateral Amount" means, as of any date of determination, an amount
           -----------------
     equal to the result of (a) the Initial Collateral Amount, minus (b) the
     amount of principal previously paid to the Series 2001-A Noteholders, minus
     (c) the balance on deposit in the Principal Accumulation Account, minus (d)
     the aggregate reductions to the Collateral Amount made pursuant to Section
                                                                        -------
     4.4(c) on or prior to such date of determination, minus (e) the excess, if
     ------
     any, of the aggregate amount of Investor Charge-Offs and Reallocated
     Principal Collections over the reimbursements of such amounts pursuant to
     subsection 4.4(a)(iv) prior to such date, plus (f) any additional amount
     ---------------------
     designated by the Seller pursuant to Section 8.10.

          "Control Transfer Event" means either of the following events: (a) the
           ----------------------
     Insurer shall fail to timely make any payment required to be made by it
     pursuant to any Policy or otherwise default in any of its obligations under
     the Insurance Agreement; or (b) the Insurer 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, or (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, the petition
     instituting same is not dismissed within 60 days after its filing.

          "Controlled Accumulation Amount" means, for any Distribution Date with
           ------------------------------
     respect to the Controlled Accumulation Period, $50,000,000; provided,
                                                                 --------
     however, that if the Accumulation Period Length is determined to be less
     -------
     than 12 months pursuant to Section 4.14 or 4.15, the Controlled
                                ------------    ----
     Accumulation Amount for each Distribution Date with respect to the
     Controlled Accumulation Period will be equal to (i) the product of (x) the
     aggregate initial principal amount of the Series 2001-A Notes and (y) the
     Accumulation Period Factor for such Monthly Period divided by (ii) the
     Required Accumulation Factor Number.

          "Controlled Accumulation Period" means, unless a Pay Out Event shall
           ------------------------------
     have occurred prior thereto, the period commencing at the opening of
     business on March 1, 2004 or such later date as is determined in accordance
     with Section 4.14 and 4.15, and ending on the first to occur of (a) the
          ------------     ----
     commencement of the Rapid Amortization Period, (b) the payment in full of
     the Note Principal Balance and (c) the Series 2001-A Final Maturity Date.

          "Controlled Deposit Amount" means, for any Distribution Date with
           -------------------------
     respect to the Controlled Accumulation Period, an amount equal to the sum
     of the Controlled Accumulation Amount for such Distribution Date and any
     existing Accumulation Shortfall.

                                       4

<PAGE>

          "Counterparty" means Morgan Guaranty Trust Company of New York or the
           ------------
     counterparty under any replacement interest rate swap obtained pursuant to
     Section 4.17.
     ------------

          "Covered Amount" means an amount, determined as of each Distribution
           --------------
     Date for any Interest Period, equal to the sum of (a) the product of (i) a
     fraction, the numerator of which is the actual number of days in such
     Interest Period and the denominator of which is 360, times (ii) the Note
     Interest Rate in effect with respect to such Interest Period, times (iii)
     the aggregate amount on deposit in the Principal Accumulation Account as of
     the Record Date preceding such Distribution Date.

          "Default Amount Rate" is defined in the Insurance Agreement.
           -------------------

          "Default Estimate" means, for any Monthly Period, an amount equal to
           ----------------
     the product of (i) 1.5, multiplied by (ii) the arithmetic mean of the
     Investor Default Amounts for the prior three Monthly Periods. For this
     purpose, the April, May, June and July Investor Default Amounts shall be
     deemed to have equaled $9,300,000.

          "Deficiency Amount" means (a) for any Distribution Date other than the
           -----------------
     Series 2001-A Final Maturity Date, the excess of the amounts payable
     pursuant to Sections 4.4(a)(i) and (ii) for such Distribution Date over the
                 ------------------     ----
     Available Finance Charge Collections, Reallocated Principal Collections and
     Available Spread Account Amount that are available to cover such amounts,
     and (b) for the Series 2001-A Final Maturity Date, the sum of (i) the
     amount determined pursuant to clause (a) for the Series 2001-A Final
                                   ----------
     Maturity Date and (ii) the excess of the Note Principal Balance over the
     Available Principal Collections and Available Spread Account Amount that
     are available to cover such amount.

          "Distribution Date" means August 15, 2001 and the 15th day of each
           -----------------
     calendar month thereafter, or if such 15th day is not a Business Day, the
     next succeeding Business Day.

          "Enhancement Provider" means each of the Insurer and the Counterparty.
           --------------------

          "Excess Collateral Amount" means, at any time, the result of the
           ------------------------
     Collateral Amount, plus the Principal Accumulation Account Balance, minus
     the Note Principal Balance.

          "Excess Spread Percentage" is defined in the Insurance Agreement.
           ------------------------

          "Expected Principal Distribution Date" means the March 2005
           ------------------------------------
     Distribution Date.

          "Finance Charge Shortfall" is defined in Section 4.7.
           ------------------------                -----------

                                       5

<PAGE>

          "Group One" means Series 2001-A, the outstanding Series under (and as
           ---------
     defined in) the Pooling and Servicing Agreement (other than Series
     represented by the Collateral Certificate) and each other Series hereafter
     specified in the related Indenture Supplement to be included in Group One.

          "Initial Collateral Amount" means the sum of (a) $685,800,000, which
           -------------------------
     equals the sum of (i) the initial principal amount of the Series 2001-A
     Notes plus (ii) the Initial Excess Collateral Amount (excluding the
     Supplemental Enhancement), plus (b) the Supplemental Enhancement.

          "Initial Excess Collateral Amount" means, at any time, the sum of (a)
           --------------------------------
     $85,800,000, plus (b) the Supplemental Enhancement.

          "Insurance Agreement" means the Insurance and Reimbursement Agreement
           -------------------
     dated as of the Closing Date between the Seller, the Servicer, Spiegel,
     Spiegel Acceptance Corporation, the Issuer, the Indenture Trustee and the
     Insurer.

          "Insured Obligation" means, with respect to any Policy, the "Insured
           ------------------
     Obligation" as defined in such Policy.

          "Insurer" means MBIA Insurance Corporation, a New York stock insurance
           -------
     corporation.

          "Interest Period" means, for any Distribution Date, the period from
           ---------------
     and including the Distribution Date immediately preceding such Distribution
     Date (or, in the case of the first Distribution Date, from and including
     the Closing Date) to but excluding such Distribution Date.

          "Interest Shortfall" is defined in Section 4.2.
           ------------------                -----------

          "Investor Charge-Offs" is defined in Section 4.5.
           --------------------                -----------

          "Investor Default Amount" means, for any Distribution Date, an amount
           -----------------------
     equal to the product of (a) the Default Amount for the related Monthly
     Period and (b) the daily average Allocation Percentage for such Monthly
     Period; provided that the Investor Default Amount for the August 15, 2001
             --------
     Distribution Date shall be equal to the product of (a) the Default Amount
     for the calendar month of July 2001, (b) the daily average Allocation
     Percentage for the first Monthly Period and (c) a fraction equal to the
     number of days in the first Monthly Period, divided by 31.

          "Investor Finance Charge Collections" means, for any Monthly Period,
           -----------------------------------
     an amount equal to the aggregate amount of Finance Charge Collections
     (including Net Recoveries treated as Finance Charge Collections) retained
     or deposited in the Finance Charge Subaccount for Series 2001-A pursuant to
     subsection 4.1(b)(i) for such Monthly Period.
     --------------------

                                       6

<PAGE>

          "Investor Principal Collections" means, for any Monthly Period, the
           ------------------------------
     aggregate amount of Principal Collections retained or deposited in the
     Principal Collections Subaccount for Series 2001-A pursuant to subsection
                                                                    ----------
     4.1(b)(ii) for such Monthly Period.
     ----------

          "Investor Uncovered Dilution Amount" means, for any Distribution Date,
           ----------------------------------
     an amount equal to the Series Share of shortfalls in Deposit Obligations
     that is allocated to Series 2001-A pursuant to Section 8.4(h) of the
                                                    --------------
     Indenture.

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

          "LIBOR Determination Date" means the second London Banking Day prior
           ------------------------
     to the commencement of each Interest Period.

          "London Banking Day" means any day on which commercial banks are open
           ------------------
     for general business (including dealings in foreign exchange and foreign
     currency deposits) in London, England.

          "Minimum Seller Percentage" means zero for Series 2001-A.
           -------------------------

          "Modified Excess Spread Percentage" is defined in the Insurance
           ---------------------------------
     Agreement.

          "Monthly Insurance Premium" means the Premium (as defined in the
           -------------------------
     Premium and Fee Letter) for any Monthly Period.

          "Monthly Interest" is defined in Section 4.2.
           ----------------                -----------

          "Monthly Period" means the period from and including the first day of
           --------------
     the calendar month preceding a related Determination Date to and including
     the last day of such calendar month; provided that the first Monthly Period
     shall begin on and include the Closing Date and end on and include July 31,
     2001.

          "Monthly Principal" means the monthly principal distributable in
           -----------------
     respect of the Notes as calculated in accordance with Section 4.3.
                                                           -----------

          "Monthly Principal Reallocation Amount" means, for any Monthly Period,
           -------------------------------------
     an amount equal to the lower of:

               (a) the excess of the Required Amount, over the amount of
          Available Finance Charge Collections applied to pay the Required
          Amount pursuant to subsection 4.4(a); and
                             -----------------

               (b) the Excess Collateral Amount (after giving effect to Investor
          Charge-Offs for the related Monthly Period).

                                       7

<PAGE>

          "Monthly Servicing Fee" is defined in subsection 3.1(a).
           ---------------------                -----------------

          "Net Interest Obligation" means, for any Distribution Date: (a) if
           -----------------------
     there is a Net Swap Payment due on that Distribution Date, the sum of the
     Net Swap Payment and the Monthly Interest for that Distribution Date; (b)
     if there is a Net Swap Receipt due on that Distribution Date, the result of
     the Monthly Interest for that Distribution Date minus the Net Swap Receipt;
     and (c) if the Swap has terminated for any reason, the Monthly Interest for
     that Distribution Date.

          "Net Swap Payment" means any net amount payable by the Issuer under
           ----------------
     the Swap as a result of LIBOR being less than the Swap Rate. For the
     avoidance of doubt, (i) Net Swap Payments do not include early termination
     payments or payment of breakage or other miscellaneous costs, and (ii) for
     any Distribution Date, the Monthly Interest, less the Net Swap Receipt, if
     any, plus, the Net Swap Payment, if any, will never exceed what Monthly
     Interest would have been if the Note Interest Rate were 5.485%.

          "Net Swap Receipt" means any net amount payable by the Counterparty as
           ----------------
     a result of LIBOR being greater than the Swap Rate. For the avoidance of
     doubt, Net Swap Receipts do not include early termination payments.

          "Note Initial Principal Balance" means $600,000,000.
           ------------------------------

          "Note Interest Rate" means a per annum rate of 0.28% in excess of
           ------------------
     LIBOR as determined on the LIBOR Determination Date for the applicable
     Interest Period.

          "Note Principal Balance" means, on any date of determination, an
           ----------------------
     amount equal to (a) the Note Initial Principal Balance, minus (b) the
     aggregate amount of principal payments made to the Class A Noteholders on
     or prior to such date.

          "Percentage Allocation" is defined in subsection 4.1(b)(ii)(y).
           ---------------------                ------------------------

          "Policy" means the Financial Guaranty Insurance Policy No. 35738(1) or
           ------
     the Financial Guaranty Insurance Policy No. 35738(2), each issued by MBIA
     Insurance Corporation pursuant to the Insurance Agreement, and,
     collectively, referred to herein as the "Policies."

          "Portfolio Adjusted Yield" means, for any Distribution Date, the
           ------------------------
     average of the percentages obtained for each of the three preceding Monthly
     Periods by subtracting the Base Rate and the Default Amount Rate for each
     such Monthly Period from the Portfolio Yield for each such Monthly Period.

          "Portfolio Yield" is defined in the Insurance Agreement.
           ---------------

          "Premium and Fee Letter" is defined in the Insurance Agreement.
           ----------------------

                                       8

<PAGE>

          "Principal Accumulation Account" shall have the meaning set forth in
           ------------------------------
     subsection 4.9(a).
     -----------------

          "Principal Accumulation Account Balance" means, for any date of
           --------------------------------------
     determination, the principal amount, if any, on deposit in the Principal
     Accumulation Account on such date of determination.

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

          "Principal Payment Rate" means, for any Monthly Period, (a) the
           ----------------------
     aggregate amount of Principal Collections deposited in the Collection
     Account during that Monthly Period, divided by (b) the Aggregate Principal
                                         ------- --
     Receivables as of the close of business on the last day of the prior
     Monthly Period.

          "Principal Shortfall" is defined in subsection 4.8(a).
           -------------------                -----------------

          "Qualified Maturity Agreement" means an agreement, meeting the
           ----------------------------
     requirements described in the definition of "Qualified Maturity Agreement"
     set forth in the Policies, whereby an Eligible Institution agrees to make a
     deposit into the Principal Accumulation Account on the Expected Principal
     Distribution Date in an amount equal to the Note Principal Balance on such
     date; provided that for purposes of this definition, references in the
     definition of "Eligible Institution" to ratings of "A-1+" and "AAA" by
     Standard & Poor's shall be modified to require ratings of "A-1" and "A+"
     from Standard & Poor's.

          "Rapid Amortization Period" means the period commencing on the
           -------------------------
     Business Day immediately preceding the day on which a Pay Out Event with
     respect to Series 2001-A is deemed to have occurred, and ending on the
     first to occur of (i) the payment in full of the Collateral Amount and (ii)
     the Series 2001-A Final Maturity Date; provided, that if any amounts are
                                            --------
     owing to the Insurer under the Insurance Agreement or the Counterparty
     under the Swap at the Series 2001-A Final Maturity Date, the Rapid
     Amortization Period shall continue, solely for purposes of repaying such
     amounts, but in no event shall the Rapid Amortization Period continue after
     the earliest of (x) the date on which no further amounts are owed to the
     Insurer under the Insurance Agreement and the Counterparty under the Swap,
     (y) the March 2010 Distribution Date and (z) the date on which the
     Collateral Amount has been reduced to zero; provided, further, that if the
                                                 --------  -------
     Rapid Amortization Period is extended in accordance with the immediately
     preceding proviso, for purposes of calculating the Minimum Aggregate
     Principal Balance, for so long as the Rapid Amortization Period is so
     extended, (i) Series 2001-A shall be deemed to be outstanding, (ii) the
     Collateral Amount shall be included in the sum of the collateral amounts of
     all outstanding series for purposes of clause (a) of the definition of
     Minimum Aggregate Principal Balance and (iii) the numerator used for
     purposes of the Allocation

                                       9

<PAGE>

     Percentage with respect to Principal Collections for Series 2001-A shall be
     included in the calculation described in clause (b) of the definition of
     Minimum Aggregate Principal Balance..

          "Rating Agency" means each of Fitch, Moody's and Standard & Poor's.
           -------------

          "Rating Agency Condition" means, with respect to Series 2001-A, the
           -----------------------
     Rating Agency Condition, as defined in the Insurance Agreement.

          "Reallocated Principal Collections" means, for any Distribution Date,
           ---------------------------------
     Investor Principal Collections applied in accordance with Section 4.6 in an
                                                               -----------
     amount not to exceed the Monthly Principal Reallocation Amount for the
     related Monthly Period.

          "Reassignment Amount" means, for any Distribution Date, after giving
           -------------------
     effect to any deposits and distributions otherwise to be made on such
     Distribution Date, the sum of (i) the outstanding principal balance of the
     Series 2001-A Notes on such Distribution Date, plus (ii) Monthly Interest
     for such Distribution Date and any Monthly Interest previously due but not
     distributed to the Series 2001-A Noteholders, plus (iii) the amount of
     Additional Interest, if any, for such Distribution Date and any Additional
     Interest previously due but not distributed to the Series 2001-A
     Noteholders on a prior Distribution Date.

          "Reference Banks" means four major banks in the London interbank
           ---------------
     market selected by the Servicer or the Counterparty as calculation agent
     under the Swap.

          "Reimbursement Amounts" is defined in the Insurance Agreement.
           ---------------------

          "Required Accumulation Factor Number" shall be equal to a fraction,
           -----------------------------------
     rounded upwards to the nearest whole number, the numerator of which is one
     and the denominator of which is equal to the lowest monthly Principal
     Payment Rate on the Accounts, expressed as a decimal, for the 12 months
     preceding the date of such calculation; provided, however, that this
                                             --------  -------
     definition may be changed at any time if the Rating Agency Condition is
     satisfied.

          "Required Amount" is defined in the Insurance Agreement.
           ---------------

          "Required Excess Collateral Amount" is defined in the Insurance
           ---------------------------------
     Agreement.

          "Required Reserve Account Amount" means, for any Distribution Date on
           -------------------------------
     or after the Reserve Account Funding Date, an amount equal to (a) 0.5% of
     the Note Principal Balance or (b) any other amount designated by the
     Seller; provided, however, that if such designation is of a lesser amount,
             --------  -------
     the Seller shall (i) provide the Servicer and the Indenture Trustee with
     evidence that the Rating Agency Condition shall have been satisfied and
     (ii) deliver to the Indenture Trustee a certificate of an Authorized
     Officer to the effect that, based on the facts known to such officer at
     such time, in the reasonable belief of the Seller, such designation will
     not cause a Pay Out

                                       10

<PAGE>

     Event or an event that, after the giving of notice or the lapse of time,
     would cause a Pay Out Event to occur with respect to Series 2001-A.

          "Reserve Account" is defined in subsection 4.10(a).
           ---------------                ------------------

          "Reserve Account Funding Date" means the Distribution Date designated
           ----------------------------
     by the Servicer which occurs not later than the earliest of (a) the
     Distribution Date with respect to the Monthly Period which commences 3
     months prior to the commencement of the Controlled Accumulation Period; (b)
     the first Distribution Date for which the Portfolio Adjusted Yield is less
     than 2%, but in such event the Reserve Account Funding Date shall not be
     required to occur earlier than the Distribution Date with respect to the
     Monthly Period which commences 12 months prior to the commencement of the
     Controlled Accumulation Period; (c) the first Distribution Date for which
     the Portfolio Adjusted Yield is less than 3%, but in such event the Reserve
     Account Funding Date shall not be required to occur earlier than the
     Distribution Date with respect to the Monthly Period which commences 6
     months prior to the commencement of the Controlled Accumulation Period; and
     (d) the first Distribution Date for which the Portfolio Adjusted Yield is
     less than 4%, but in such event the Reserve Account Funding Date shall not
     be required to occur earlier than the Distribution Date with respect to the
     Monthly Period which commences 4 months prior to the commencement of the
     Controlled Accumulation Period.

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

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

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

          "Series 2001-A" means the Series of Notes the terms of which are
           --------------
     specified in this Indenture Supplement.

          "Series 2001-A Final Maturity Date" means the earlier to occur of (a)
           ---------------------------------
     the Distribution Date on which the Note Principal Balance is paid in full
     and (b) the March 2010 Distribution Date.

          "Series 2001-A Note" means a Class A Note.
           ------------------

          "Series 2001-A Noteholder" means a Class A Noteholder.
           ------------------------

                                       11

<PAGE>

          "Series 2001-A Pay Out Event" is defined in Section 6.1.
           ---------------------------                -----------

          "Series Servicing Fee Percentage" means 2% per annum.
           -------------------------------

          "Spread Account" means the segregated trust account required to be
           --------------
     established pursuant to Section 2.05 of the Insurance Agreement, which
     section is set forth in its entirety in Exhibit G.
                                             ---------

          "Supplemental Enhancement" is defined in the Insurance Agreement.
           ------------------------

          "Surplus Collateral Amount" means, at any time, the excess, if any, of
           -------------------------
     the Excess Collateral Amount over the sum of the Required Excess Collateral
     Amount and the Supplemental Enhancement.

          "Swap" means an interest rate swap agreement between the Owner
           ----
     Trustee, on behalf of the Trust, and the Counterparty substantially in the
     form of Exhibit E to this Indenture Supplement, or such other form as shall
             ---------
     have satisfied the Rating Agency Condition.

          "Swap Rate" means 5.205% per annum.
           ---------

          "Telerate Page 3750" means the display page currently so designated on
           ------------------
     the Bridge Telerate Capital Markets Report (or such other page as may
     replace that page in that service for the purpose of displaying comparable
     rates or prices).

          (b) Each capitalized term defined herein shall relate to the Series
     2001-A Notes and no other Series of Notes issued by the Trust, unless the
     context otherwise requires. All capitalized terms used herein and not
     otherwise defined herein have the meanings ascribed to them in the
     Indenture or the Transfer and Servicing Agreement. In the event that any
     term or provision contained herein shall conflict with or be inconsistent
     with any term or provision contained in the Indenture or the Transfer and
     Servicing Agreement, the terms and provisions of this Indenture Supplement
     shall govern.

          (c) The interpretive rules specified in Section 1.2 of the Master
                                                  -----------
     Indenture also apply to this Indenture Supplement.

          (d) The definitions of all capitalized terms defined herein by
     reference to the respective definitions of those terms in the Insurance
     Agreement can be found in Exhibit F.
                               ---------

                                   ARTICLE III

                                  Servicing Fee
                                  -------------

          Section 3.1 Servicing Compensation. The share of the Servicing Fee
                      ----------------------
     allocable to Series 2001-A for any Distribution Date (the "Monthly
                                                                -------
     Servicing Fee")
     -------------

                                       12

<PAGE>

     shall be equal to one-twelfth of the product of (a) the Series Servicing
     Fee Percentage and (b) (i) the Collateral Amount as of the last day of the
     Monthly Period preceding such Distribution Date, minus (ii) the product of
     the amount, if any, on deposit in the Excess Funding Account as of the last
     day of the Monthly Period preceding such Distribution Date and the
     Allocation Percentage for Finance Charge Collections with respect to such
     Monthly Period; provided, however, that with respect to the first
                     --------  -------
     Distribution Date, the Monthly Servicing Fee shall be equal to $495,300.
     The remainder of the Servicing Fee shall be paid by the holders of the
     Seller Interest or the noteholders of other Series (as provided in the
     related Indenture Supplements) and in no event shall the Trust, the
     Indenture Trustee or the Series 2001-A Noteholders be liable for the share
     of the Servicing Fee to be paid by the holders of the Seller Interest or
     the noteholders of any other Series. To the extent that the Monthly
     Servicing Fee is not paid in full pursuant to the preceding provisions of
     this Section 3.1 and Section 4.4, it shall be paid by the holders of the
          -----------     -----------
     Seller Interest.

                                   ARTICLE IV

                       Rights of Series 2001-A Noteholders
                  and Allocation and Application of Collections
                  ---------------------------------------------

          Section 4.1 Collections and Allocations.
                      ---------------------------

          (a) Allocations. Finance Charge Collections, Principal Collections and
              -----------
     Defaulted Receivables allocated to Series 2001-A pursuant to Article VIII
                                                                  ------------
     of the Indenture shall be allocated and distributed as set forth in this
     Article.

          (b) Allocations to the Series 2001-A Noteholders. The Servicer shall,
              --------------------------------------------
     prior to the close of business on any Deposit Date, allocate to the Series
     2001-A Noteholders the following amounts as set forth below:

               (i) Allocations of Finance Charge Collections. The Servicer shall
                   -----------------------------------------
          allocate to the Series 2001-A Noteholders and transfer to the Finance
          Charge Subaccount for application as provided herein an amount equal
          to the product of (A) the Allocation Percentage and (B) the aggregate
          Finance Charge Collections deposited in the Collection Account on such
          Deposit Date; provided, however, that with respect to the portion of
                        --------  -------
          each Monthly Period falling in the Revolving Period or the Controlled
          Accumulation Period, such allocation shall be transferred to the
          Finance Charge Subaccount only until such time as the amount
          transferred to the Finance Charge Subaccount pursuant to this
          subsection during that Monthly Period equals the sum of (1) the Net
          Interest Obligation with respect to the Distribution Date relating to
          that Monthly Period, (2) at any time that FCNB is not the Servicer,
          the Monthly Servicing Fee payable on the Distribution Date relating to
          that Monthly Period and all accrued and unpaid Investor Monthly
          Servicing Fees with respect to any prior Monthly Periods, (3) the
          Default Estimate for that

                                       13

<PAGE>

          Monthly Period and (4) the Monthly Insurance Premium with respect to
          that Monthly Period; provided further, however, that notwithstanding
                               -------- -------  -------
          the foregoing proviso, (1) the entire Allocation Percentage of Finance
                        -------
          Charge Collections shall be transferred to the Finance Charge
          Subaccount on a daily basis if (x) the Excess Spread Percentage for
          the preceding Monthly Period is less than 3.00%, or (y) the Available
          Spread Account Amount is less than the Required Spread Account Amount;
          and (2) subject to Section 8.4(a) of the Indenture, on each
                             --------------
          Determination Date, the Servicer shall deposit in the Finance Charge
          Subaccount any amounts not retained on a daily basis pursuant to the
          preceding proviso. Any portion of such allocation not required to be
                    -------
          transferred to the Finance Charge Subaccount pursuant to the preceding
          sentence shall be (x) first, deposited in the Excess Funding Account
          to the extent that the Seller Amount is less than the Minimum Seller
          Amount and (y) thereafter paid to the Holders of the Seller Interest.

               (ii) Allocations of Principal Collections. The Servicer shall
                    ------------------------------------
          allocate to the Series 2001-A Noteholders the following amounts as set
          forth below:

                    (x) Allocations During the Revolving Period. During the
                        ---------------------------------------
               Revolving Period an amount equal to the product of the Allocation
               Percentage and the aggregate amount of Principal Collections
               deposited in the Collection Account on such Deposit Date, shall
               be allocated to the Series 2001-A Noteholders and shall be first,
               if any other Principal Sharing Series is outstanding and in its
               amortization period or accumulation period, retained in the
               Collection Account for application, to the extent necessary, as
               Shared Principal Collections to other Principal Sharing Series on
               the related Distribution Date, second deposited in the Excess
               Funding Account to the extent necessary so that the Seller Amount
               is not less than the Minimum Seller Amount and third paid to the
               holders of the Seller Interest.

                    (y) Allocations During the Controlled Accumulation Period.
                        -----------------------------------------------------
               During the Controlled Accumulation Period an amount equal to the
               product of (I) the Allocation Percentage and (II) the aggregate
               amount of Principal Collections deposited in the Collection
               Account on such Deposit Date (the product for any such date is
               hereinafter referred to as a "Percentage Allocation") shall be
                                             ---------------------
               allocated to the Series 2001-A Noteholders and transferred to the
               Principal Collections Subaccount until applied as provided
               herein; provided, however, that if the sum of such Percentage
                       --------  -------
               Allocation and all preceding Percentage Allocations with respect
               to the same Monthly Period exceeds the Controlled Deposit Amount
               during the Controlled Accumulation Period for the related
               Distribution Date, then such excess shall not be treated as a
               Percentage Allocation and shall be first, if any other Principal
               Sharing Series is outstanding and in its

                                       14

<PAGE>

               amortization period or accumulation period, transferred to the
               Principal Collections Subaccount for application, to the extent
               necessary, as Shared Principal Collections to other Principal
               Sharing Series on the related Distribution Date, second deposited
               in the Excess Funding Account to the extent necessary so that the
               Seller Amount is not less than the Minimum Seller Amount and
               third paid to the holders of the Seller Interest.

                    (z) Allocations During the Rapid Amortization Period. During
                        ------------------------------------------------
               the Rapid Amortization Period, an amount equal to the product of
               (I) the Allocation Percentage and (II) the aggregate amount of
               Principal Collections deposited in the Collection Account on such
               Deposit Date, shall be allocated to the Series 2001-A Noteholders
               and transferred to the Principal Collections Subaccount until
               applied as provided herein; provided, however, that after the
                                           --------  -------
               date on which an amount of such Collections equal to the Note
               Principal Balance plus any amounts owing to the Counterparty
               under the Swap and the Insurer under the Insurance Agreement has
               been deposited into the Collection Account and allocated to the
               Series 2001-A Noteholders, such amount shall be first, if any
               other Principal Sharing Series is outstanding and in its
               amortization period or accumulation period, transferred to the
               Principal Collections Subaccount for application, to the extent
               necessary, as Shared Principal Collections to other Principal
               Sharing Series on the related Distribution Date, second deposited
               in the Excess Funding Account to the extent necessary so that the
               Seller Amount is not less than the Minimum Seller Amount and
               third paid to the holders of the Seller Interest.

          Section 4.2 Determination of Monthly Interest. The amount of monthly
                      ---------------------------------
     interest (" Monthly Interest") distributable from the Collection Account
                 ----------------
     with respect to the Class A Notes on any Distribution Date shall be an
     amount equal to the product of (i) (A) a fraction, the numerator of which
     is the actual number of days in the related Interest Period and the
     denominator of which is 360, times (B) the Note Interest Rate in effect
     with respect to the related Interest Period and (ii) the Note Principal
     Balance as of the close of business on the last day of the preceding
     Monthly Period (or, with respect to the initial Distribution Date, the Note
     Initial Principal Balance).

          On the Determination Date preceding each Distribution Date, the
     Servicer shall determine the excess, if any (the "Interest Shortfall"), of
                                                       ------------------
     (x) the Monthly Interest for such Distribution Date over (y) the aggregate
     amount of funds allocated and available to pay such Monthly Interest on
     such Distribution Date. If the Interest Shortfall for any Distribution Date
     is greater than zero and the Insurer fails to pay such Interest Shortfall
     in accordance with the terms of the related Policy, on each subsequent
     Distribution Date until such Interest Shortfall is fully paid, an
     additional

                                       15

<PAGE>

     amount ("Additional Interest") equal to the product of (i) (A) a fraction,
              -------------------
     the numerator of which is the actual number of days in the related Interest
     Period and the denominator of which is 360, times (B) the Note Interest
     Rate in effect with respect to the related Interest Period and (ii) such
     Interest Shortfall (or the portion thereof which has not been paid to the
     Class A Noteholders) shall be payable as provided herein with respect to
     the Class A Notes. Notwithstanding anything to the contrary herein,
     Additional Interest shall be payable or distributed to the Class A
     Noteholders only to the extent permitted by applicable law.

          Section 4.3 Determination of Monthly Principal. The amount of monthly
                      ----------------------------------
     principal distributable from the Collection Account with respect to the
     Notes on each Distribution Date (the "Monthly Principal"), beginning with
                                           -----------------
     the Distribution Date in the month following the month in which the
     Controlled Accumulation Period or, if earlier, the Rapid Amortization
     Period, begins, shall be equal to the least of (i) the Available Principal
     Collections on deposit in the Collection Account with respect to such
     Distribution Date, (ii) for each Distribution Date with respect to the
     Controlled Accumulation Period, the Controlled Deposit Amount for such
     Distribution Date, (iii) the Note Principal Balance, minus any amount
     already on deposit in the Principal Accumulation Account on such
     Distribution Date and (iv) the Collateral Amount (after taking into account
     any adjustments to be made pursuant to Sections 4.5 and 4.6) prior to any
                                            ------------     ---
     deposit into the Principal Accumulation Account on such Distribution Date.

          Section 4.4 Application of Available Finance Charge Collections and
                      -------------------------------------------------------
     Available Principal Collections. The Servicer shall apply, or shall cause
     -------------------------------
     the Indenture Trustee to apply by written instruction to the Indenture
     Trustee, on each Distribution Date, Available Finance Charge Collections
     and Available Principal Collections on deposit in the Collection Account
     with respect to such Distribution Date to make the following distributions:

          (a) On each Distribution Date, an amount equal to the Available
     Finance Charge Collections with respect to such Distribution Date will be
     distributed or deposited in the following priority:

               (i) on a pari passu basis (A) an amount equal to Monthly Interest
          for such Distribution Date, plus the amount of any Monthly Interest
          previously due but not distributed to Class A Noteholders on a prior
          Distribution Date, plus the amount of any Additional Interest for such
          Distribution Date, plus the amount of any Additional Interest
          previously due but not distributed to Class A Noteholders on a prior
          Distribution Date, shall be distributed to the Paying Agent for
          payment to Class A Noteholders on such Distribution Date and (B) any
          Net Swap Payment for that Distribution Date shall be distributed to
          the Counterparty;

               (ii) if neither FCNB nor any affiliate of the Seller is the
          Servicer, an amount equal to the Monthly Servicing Fee for such
          Distribution Date,

                                       16

<PAGE>

          plus the amount of any Monthly Servicing Fee previously due but not
          distributed to the Servicer on a prior Distribution Date, shall be
          distributed to the Servicer;

               (iii) an amount equal to the Investor Default Amount and any
          Investor Uncovered Dilution Amount for such Distribution Date shall be
          treated as a portion of Available Principal Collections for such
          Distribution Date;

               (iv) an amount equal to the sum of the aggregate amount of
          Investor Charge-Offs and the amount of Reallocated Principal
          Collections which have not been previously reimbursed pursuant to this
          subsection (iv) shall be treated as a portion of Available Principal
          ---------------
          Collections for such Distribution Date;

               (v) an amount equal to the Monthly Insurance Premium for the
          related Monthly Period and any unpaid Monthly Insurance Premiums for
          prior Monthly Periods shall be paid to the Insurer;

               (vi) on each Distribution Date from and after the Reserve Account
          Funding Date, but prior to the date on which the Reserve Account
          terminates as described in subsection 4.10(f), an amount up to the
                                     ------------------
          excess, if any, of the Required Reserve Account Amount over the
          Available Reserve Account Amount shall be deposited into the Reserve
          Account;

               (vii) an amount equal to the amounts required to be deposited in
          the Spread Account pursuant to Section 2.05(f) of the Insurance
          Agreement shall be deposited into the Spread Account as provided in
          Section 2.05(f) of the Insurance Agreement;

               (viii) during the Rapid Amortization Period, any amount remaining
          shall be applied as Available Principal Collections for such
          Distribution Date to the extent that the other Available Principal
          Collections (excluding any amounts drawn under the Policies) are not
          sufficient to repay the Class A Notes in full;

               (ix) an amount equal to any Reimbursement Amounts and interest
          thereon owed under the Insurance Agreement shall be paid to the
          Insurer;

               (x) an amount equal to any other amounts owing to the Insurer
          under the Insurance Agreement shall be paid to the Insurer;

               (xi) if the Rapid Amortization Period is extended past the
          Distribution Date on which the Note Principal Balance is paid in full
          as a result of there being amounts owed to the Counterparty, on each
          Distribution Date after the Note Principal Balance is paid in full, an
          amount equal to any

                                       17

<PAGE>

          partial or early termination payments or other additional payments
          owed to the Counterparty under the Swap shall be paid to the
          Counterparty;

               (xii) any Monthly Servicing Fee for such Distribution Date or
          prior Distribution Dates not paid pursuant to subsection 4.4(a)(ii)
                                                        ---------------------
          (unless such amount has been netted against deposits to the Collection
          Account in accordance with Section 8.4 of the Indenture) shall be
                                     -----------
          distributed to the Servicer; and

               (xiii) the balance, if any, will constitute a portion of Excess
          Finance Charge Collections for such Distribution Date and first will
          be available for allocation to other Series in Group One, second
          deposited in the Excess Funding Account to the extent necessary so
          that the Seller Amount is not less than the Minimum Seller Amount and
          third paid to the Holders of the Seller Interest as described in
          Section 8.6 of the Indenture.
          -----------

          (b) On each Distribution Date with respect to the Revolving Period, an
     amount equal to the Available Principal Collections deposited in the
     Collection Account for the related Monthly Period shall be treated as
     Shared Principal Collections and applied in accordance with Section 8.5 of
                                                                 -----------
     the Indenture.

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

               (i) during the Controlled Accumulation Period, an amount equal to
          the Monthly Principal for such Distribution Date shall be deposited
          into the Principal Accumulation Account, and any remaining Available
          Principal Collections shall be treated as Shared Principal Collections
          and applied in accordance with Section 8.5 of the Indenture; and
                                         -----------

               (ii) during the Rapid Amortization Period, an amount equal to the
          Monthly Principal for such Distribution Date shall be distributed to
          the Paying Agent for payment to the Class A Noteholders on such
          Distribution Date until the Note Principal Balance has been paid in
          full, and any remaining Available Principal Collections shall be
          treated as Shared Principal Collections and applied in accordance with
          Section 8.5 of the Indenture.
          -----------

          As of any Distribution Date on which any Available Principal
     Collections are treated as Shared Principal Collections as provided above,
     the Collateral Amount shall be reduced by an amount equal to the lesser of
     (x) the amount of Available Principal Collections applied as Shared
     Principal Collections and (y) the Surplus Collateral Amount.

                                       18

<PAGE>

          (d) On the earlier to occur of (i) the first Distribution Date with
     respect to the Rapid Amortization Period and (ii) the Expected Principal
     Distribution Date, the Indenture Trustee, acting in accordance with
     instructions from the Servicer, shall withdraw from the Principal
     Accumulation Account and distribute to the Paying Agent for payment to the
     Class A Noteholders the amounts deposited into the Principal Accumulation
     Account pursuant to subsection 4.4(c)(i).
                         --------------------

          Section 4.5 Investor Charge-Offs. On each Determination Date, the
                      --------------------
     Servicer shall calculate the Investor Default Amount and any Investor
     Uncovered Dilution Amount for the related Distribution Date. If, on any
     Distribution Date, the sum of the Investor Default Amount and any Investor
     Uncovered Dilution Amount for such Distribution Date exceeds the amount of
     Available Finance Charge Collections allocated with respect thereto
     pursuant to subsection 4.4(a)(iii) with respect to such Distribution Date,
                 ----------------------
     the Collateral Amount will be reduced (but not below zero) by the amount of
     such excess (such reduction, an "Investor Charge-Off").
                                      -------------------

          Section 4.6 Reallocated Principal Collections. On each Distribution
                      ---------------------------------
     Date, the Servicer shall apply, or shall instruct the Indenture Trustee in
     writing to apply, Reallocated Principal Collections with respect to such
     Distribution Date, to fund any deficiency pursuant to and in the priority
     set forth in subsections 4.4(a)(i), (ii), (v), (ix), (x) and (xi); provided
                  ---------------------  ----  ---  ----  ---     ----
     that in no event will Reallocated Principal Collections be applied pursuant
     to subsections 4.4(a)(v), (ix), (x) and (xi) until the Series 2001-A Final
        ---------------------  ----  ---     ----
     Maturity Date. On each Distribution Date, the Collateral Amount shall be
     reduced by the amount of Reallocated Principal Collections for such
     Distribution Date.

          Section 4.7 Excess Finance Charge Collections. Series 2001-A shall be
                      ---------------------------------
     an Excess Allocation Series with respect to Group One only. For this
     purpose, each outstanding series of certificates issued by Spiegel Master
     Trust (other than series represented by the Collateral Certificate) shall
     be deemed to be a Series in Group One. Subject to Section 8.6 of the
                                                       -----------
     Indenture, Excess Finance Charge Collections with respect to the Excess
     Allocation Series in Group One for any Distribution Date will be allocated
     to Series 2001-A in an amount equal to the product of (x) the aggregate
     amount of Excess Finance Charge Collections with respect to all the Excess
     Allocation Series in Group One for such Distribution Date and (y) a
     fraction, the numerator of which is the Finance Charge Shortfall for Series
     2001-A for such Distribution Date and the denominator of which is the
     aggregate amount of Finance Charge Shortfalls for all the Excess Allocation
     Series in Group One for such Distribution Date. The "Finance Charge
                                                          --------------
     Shortfall" for Series 2001-A for any Distribution Date will be equal to the
     ---------
     excess, if any, of (a) the full amount required to be paid, without
     duplication, pursuant to subsections 4.4(a)(i) through (xii) on such
                              ---------------------         -----
     Distribution Date over (b) the Available Finance Charge Collections with
     respect to such Distribution Date (excluding any portion thereof
     attributable to Excess Finance Charge Collections).

                                       19

<PAGE>

          Section 4.8 Shared Principal Collections. Subject to Section 8.5 of
                      ----------------------------             -----------
     the Indenture, Shared Principal Collections for any Distribution Date will
     be allocated to Series 2001-A in an amount equal to the product of (x) the
     aggregate amount of Shared Principal Collections with respect to all
     Principal Sharing Series for such Distribution Date and (y) a fraction, the
     numerator of which is the Principal Shortfall for Series 2001-A for such
     Distribution Date and the denominator of which is the aggregate amount of
     Principal Shortfalls for all the Series which are Principal Sharing Series
     for such Distribution Date. For this purpose, each outstanding series of
     certificates issued by Spiegel Master Trust (other than series represented
     by the Collateral Certificate) shall be deemed to be a Principal Sharing
     Series. The "Principal Shortfall" for Series 2001-A will be equal to (a)
                  -------------------
     for any Distribution Date with respect to the Revolving Period, zero, (b)
     for any Distribution Date with respect to the Controlled Accumulation
     Period, the excess, if any, of the Controlled Deposit Amount with respect
     to such Distribution Date over the amount of Available Principal
     Collections for such Distribution Date (excluding any portion thereof
     attributable to Shared Principal Collections), and (c) for any Distribution
     Date with respect to the Rapid Amortization Period, the excess, if any, of
     the Note Principal Balance (less the balance in the Principal Accumulation
     Account) over the amount of Available Principal Collections for such
     Distribution Date (excluding any portion thereof attributable to Shared
     Principal Collections).

          Section 4.9 Principal Accumulation Account.
                      ------------------------------

          (a) The Indenture Trustee shall establish and maintain with an
     Eligible Institution, which may be the Indenture Trustee in the name of the
     Trust, on behalf of the Trust, for the benefit of the Series 2001-A
     Noteholders, a non-interest bearing segregated trust account with the
     corporate trust department of such Eligible Institution (the "Principal
                                                                   ---------
     Accumulation Account"), bearing a designation clearly indicating that the
     --------------------
     funds deposited therein are held for the benefit of the Series 2001-A
     Noteholders. The Indenture Trustee shall possess all right, title and
     interest in all funds on deposit from time to time in the Principal
     Accumulation Account and in all proceeds thereof. The Principal
     Accumulation Account shall be under the sole dominion and control of the
     Indenture Trustee for the benefit of the Series 2001-A Noteholders. If at
     any time the institution holding the Principal Accumulation Account ceases
     to be an Eligible Institution, the Servicer shall notify the Indenture
     Trustee in writing, and the Indenture Trustee upon being notified (or the
     Servicer on its behalf) shall, within ten (10) Business Days, establish a
     new Principal Accumulation Account meeting the conditions specified above
     with an Eligible Institution, and shall transfer any cash or any
     investments to such new Principal Accumulation Account. The Indenture
     Trustee, at the written direction of the Servicer, shall (i) make
     withdrawals from the Principal Accumulation Account from time to time, in
     the amounts and for the purposes set forth in this Indenture Supplement,
     and (ii) on each Distribution Date (from and after the commencement of the
     Controlled Accumulation Period) prior to the termination of the Principal
     Accumulation Account, make deposits into the Principal Accumulation Account
     in the amounts specified in, and otherwise in accordance with, subsection
                                                                    ----------
     4.4(c)(i).
     ---------

                                       20

<PAGE>

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

          The Indenture Trustee shall hold such of the Permitted Investments as
     consists of instruments, deposit accounts, negotiable documents, money,
     goods, letters of credit, and advices of credit in the State of New York
     and/or Illinois. The Indenture Trustee shall hold such of the Permitted
     Investments as constitutes investment property through a securities
     intermediary, which securities intermediary shall agree with the Indenture
     Trustee that (a) such investment property shall at all times be credited to
     a securities account of the Indenture Trustee, (b) such securities
     intermediary shall treat the Indenture Trustee as entitled to exercise the
     rights that comprise each financial asset credited to such securities
     account, (c) all property credited to such securities account shall be
     treated as a financial asset, (d) such securities intermediary shall comply
     with entitlement orders originated by the Indenture Trustee without the
     further consent of any other person or entity, (e) such securities
     intermediary will not agree with any person or entity other than the
     Indenture Trustee to comply with entitlement orders originated by such
     other person or entity, (f) such securities accounts and the property
     credited thereto shall not be subject to any lien, security interest or
     right of set-off in favor of such securities intermediary or anyone
     claiming through it (other than the Indenture Trustee), and (g) such
     agreement shall be governed by the laws of the State of Illinois. Terms
     used in the preceding sentence that are defined in the New York UCC and not
     otherwise defined herein shall have the meaning set forth in the New York
     UCC.

          On each Distribution Date with respect to the Controlled Accumulation
     Period and on the first Distribution Date with respect to the Rapid
     Amortization Period, the Indenture Trustee, acting at the Servicer's
     written direction given on or before such Distribution Date, shall transfer
     from the Principal Accumulation Account to the Collection Account the
     Principal Accumulation Investment Proceeds on deposit in the Principal
     Accumulation Account for application as Available Finance Charge
     Collections in accordance with Section 4.4.
                                    -----------

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

          Section 4.10 Reserve Account.
                       ---------------

          (a) The Indenture Trustee shall establish and maintain with an
     Eligible Institution, which may be the Indenture Trustee in the name of the
     Trust, on behalf of the Trust, for the benefit of the Series 2001-A
     Noteholders, a non-interest bearing

                                       21

<PAGE>

     segregated trust account with the corporate trust department of such
     Eligible Institution (the "Reserve Account"), bearing a designation clearly
                                ---------------
     indicating that the funds deposited therein are held for the benefit of the
     Series 2001-A Noteholders. The Indenture Trustee shall possess all right,
     title and interest in all funds on deposit from time to time in the Reserve
     Account and in all proceeds thereof. The Reserve Account shall be under the
     sole dominion and control of the Indenture Trustee for the benefit of the
     Series 2001-A Noteholders. If at any time the institution holding the
     Reserve Account ceases to be an Eligible Institution, the Servicer shall
     notify the Indenture Trustee in writing, and the Indenture Trustee upon
     being notified (or the Servicer on its behalf) shall, within ten (10)
     Business Days, establish a new Reserve Account meeting the conditions
     specified above with an Eligible Institution, and shall transfer any cash
     or any investments to such new Reserve Account. The Indenture Trustee, at
     the written direction of the Servicer, shall (i) make withdrawals from the
     Reserve Account from time to time in an amount up to the Available Reserve
     Account Amount at such time, for the purposes set forth in this Indenture
     Supplement, and (ii) on each Distribution Date (from and after the Reserve
     Account Funding Date) prior to termination of the Reserve Account, make a
     deposit into the Reserve Account in the amount specified in, and otherwise
     in accordance with, subsection 4.4(a)(vi).
                         ---------------------

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

          The Indenture Trustee shall hold such of the Permitted Investments as
     consists of instruments, deposit accounts, negotiable documents, money,
     goods, letters of credit, and advices of credit in the State of New York.
     The Indenture Trustee shall hold such of the Permitted Investments as
     constitutes investment property through a securities intermediary, which
     securities intermediary shall agree with the Indenture Trustee that (a)
     such investment property shall at all times be credited to a securities
     account of the Indenture Trustee, (b) such securities intermediary shall
     treat the Indenture Trustee as entitled to exercise the rights that
     comprise each financial asset credited to such securities account, (c) all
     property credited to such securities account shall be treated as a
     financial asset, (d) such securities intermediary shall comply with
     entitlement orders originated by the Indenture Trustee without the further
     consent of any other person or entity, (e) such securities intermediary
     will not agree with any person or entity other than the Indenture Trustee
     to comply with entitlement orders originated by such other person or
     entity, (f) such securities accounts and the property credited thereto
     shall not be subject to any lien, security interest, or right of set-off in
     favor of such securities intermediary or anyone claiming through it (other
     than the Indenture Trustee), and (g) such agreement shall be governed by
     the laws of the State of New York. Terms

                                       22

<PAGE>

     used in the preceding sentence that are defined in the New York UCC and not
     otherwise defined herein shall have the meaning set forth in the New York
     UCC.

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

          (c) On or before each Distribution Date with respect to the Controlled
     Accumulation Period and on or before the first Distribution Date with
     respect to the Rapid Amortization Period, the Servicer shall calculate the
     Reserve Draw Amount; provided, however, that such amount will be reduced to
                          --------  -------
     the extent that funds otherwise would be available for deposit in the
     Reserve Account under Section 4.4(a)(vi) with respect to such Distribution
                           ------------------
     Date.

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

          (e) If the Reserve Account Surplus on any Distribution Date, after
     giving effect to all deposits to and withdrawals from the Reserve Account
     with respect to such Distribution Date, is greater than zero, the Indenture
     Trustee, acting in accordance with the written instructions of the
     Servicer, shall withdraw from the Reserve Account an amount equal to such
     Reserve Account Surplus and (i) deposit such amounts in the Spread Account,
     to the extent that funds on deposit in the Spread Account are less than the
     Required Spread Account Amount, and (ii) distribute any such amounts
     remaining after application pursuant to subsection 4.10(e)(i) to the
                                             ---------------------
     holders of the Seller Interest.

          (f) Upon the earliest to occur of (i) the termination of the Trust
     pursuant to Article VIII of the Trust Agreement, (ii) the first
                 ------------
     Distribution Date relating to the Rapid Amortization Period and (iii) the
     Expected Principal Distribution Date, the Indenture Trustee, acting in
     accordance with the instructions of the Servicer, after the prior payment
     of all amounts owing to the Series 2001-A Noteholders that are payable from
     the Reserve Account as provided herein, shall withdraw from the Reserve
     Account all amounts, if any, on deposit in the Reserve Account and (i)
     deposit such amounts in the Spread Account, to the extent that funds on
     deposit in

                                       23

<PAGE>

     the Spread Account are less than the Required Spread Account Amount, and
     (ii) distribute any such amounts remaining after application pursuant to
     subsection 4.10(f)(i) to the holders of the Seller Interest. The Reserve
     ---------------------
     Account shall thereafter be deemed to have terminated for purposes of this
     Indenture Supplement. Funds on deposit in the Reserve Account at any time
     that the Controlled Accumulation Period is suspended pursuant to Section
                                                                      -------
     4.15, shall remain on deposit until applied in accordance with subsection
     ----                                                           ----------
     4.10(d), (e) or (f).
     -------  ---    ---

          Section 4.11 [Reserved].
                       ----------

          Section 1.14 Determination of LIBOR.
                       ----------------------

          (a) On each LIBOR Determination Date in respect of an Interest Period,
     the Indenture Trustee, utilizing the services of the Counterparty as
     calculation agent under the Swap (or the Servicer if the Swap is
     terminated), shall determine LIBOR on the basis of the rate for deposits in
     United States dollars for a one-month period which appears on Telerate Page
     3750 as of 11:00 a.m., London time, on such date. If such rate does not
     appear on Telerate Page 3750, the rate for that Interest Period shall be
     determined on the basis of the rates at which deposits in United States
     dollars are offered by the Reference Banks at approximately 11:00 a.m.,
     London time, on that day to prime banks in the London interbank market for
     a one-month period. The Indenture Trustee shall request the principal
     London office of each of the Reference Banks to provide a quotation of its
     rate. If at least two (2) such quotations are provided, the rate for that
     Interest Period shall be the arithmetic mean of the quotations. If fewer
     than two (2) quotations are provided as requested, the rate for that
     Interest Period will be the arithmetic mean of the rates quoted by major
     banks in New York City, selected by the Counterparty or, if the Swap is
     terminated, the Servicer, at approximately 11:00 a.m., New York City time,
     on that day for loans in United States dollars to leading European banks
     for a one-month period.

          (b) The Note Interest Rate applicable to the then current and the
     immediately preceding Interest Periods may be obtained by telephoning the
     Indenture Trustee at its corporate trust office at (312) 827-8500 or such
     other telephone number as shall be designated by the Indenture Trustee for
     such purpose by prior written notice by the Indenture Trustee to each
     Series 2001-A Noteholder from time to time.

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

          Section 4.13 Investment Instructions. Any investment instructions
                       -----------------------
     required to be given to the Indenture Trustee pursuant to the terms hereof
     must be given to the Indenture Trustee no later than 11:00 a.m., New York
     City time, on the date such investment is to be made. In the event the
     Indenture Trustee receives such investment instruction later than such
     time, the Indenture Trustee may, but shall have

                                       24

<PAGE>

     no obligation to, make such investment. In the event the Indenture Trustee
     is unable to make an investment required in an investment instruction
     received by the Indenture Trustee after 11:00 a.m., New York City time, on
     such day, such investment shall be made by the Indenture Trustee on the
     next succeeding Business Day. In no event shall the Indenture Trustee be
     liable for any investment not made pursuant to investment instructions
     received after 11:00 a.m., New York City time, on the day such investment
     is requested to be made.

          Section 4.14 Controlled Accumulation Period. The Controlled
                       ------------------------------
     Accumulation Period is scheduled to commence at the opening of business
     March 1, 2004. However, if the Accumulation Period Length (determined as
     described below) is less than 12 months, the date on which the Controlled
     Accumulation Period actually commences will be delayed to the first
     Business Day of the month that is the number of whole months prior to the
     Expected Principal Distribution Date at least equal to the Accumulation
     Period Length and, as a result, the number of Monthly Periods in the
     Controlled Accumulation Period will at least equal the Accumulation Period
     Length. On the Determination Date immediately preceding the February 2004
     Distribution Date, and each Determination Date thereafter until the
     Controlled Accumulation Period begins, the Servicer will determine the
     "Accumulation Period Length" which will equal the number of whole months
      --------------------------
     such that the sum of the Accumulation Period Factors for each month during
     such period will be equal to or greater than the Required Accumulation
     Factor Number; provided, however, that the Accumulation Period Length will
                    --------  -------
     not be determined to be less than one month; provided further, however,
                                                  -------- -------  -------
     that the determination of the Accumulation Period Length may be changed at
     any time if the Rating Agency Condition is satisfied.

          Section 4.15 Suspension of Controlled Accumulation Period. (a) The
                       --------------------------------------------
     Issuer may, in its sole discretion, elect to suspend the commencement of
     the Controlled Accumulation Period with prior notice to the Rating
     Agencies. The commencement of the Controlled Accumulation Period shall be
     suspended upon delivery by the Issuer to the Indenture Trustee of (i) an
     Officer's Certificate stating that the Issuer has elected to suspend the
     commencement of the Controlled Accumulation Period and that all conditions
     precedent to such suspension set forth in this Section 4.15 have been
                                                    ------------
     satisfied, (ii) a copy of an executed Qualified Maturity Agreement and
     (iii) an Opinion of Counsel addressed to the Indenture Trustee as to the
     due authorization, execution and delivery and the validity and
     enforceability of such Qualified Maturity Agreement. The Issuer does hereby
     transfer, assign, set-over, and otherwise convey to the Indenture Trustee
     for the benefit of the Class A Noteholders, without recourse, all of its
     rights under any Qualified Maturity Agreement obtained in accordance with
     this Section 4.15 and all proceeds thereof. Such property shall constitute
          ------------
     part of the Trust Estate for all purposes of the Indenture. The foregoing
     transfer, assignment, set-over and conveyance does not constitute and is
     not intended to result in a creation or an assumption by the Indenture
     Trustee or any Noteholder of any obligation of the Issuer or any other

                                       25

<PAGE>

     Person in connection with a Qualified Maturity Agreement or under any
     agreement or instrument relating thereto.

          The Indenture Trustee hereby acknowledges its acceptance, to the
     extent validly transferred, assigned, set-over or otherwise conveyed to the
     Indenture Trustee, for the benefit of the Class A Noteholders, of all of
     the rights previously held by the Issuer under any Qualified Maturity
     Agreement obtained by the Issuer and all proceeds thereof, and declares
     that it shall hold such rights upon the trust set forth herein and in the
     Agreement, and subject to the terms hereof and thereof, for the benefit of
     the Class A Noteholders.

          (b) The Issuer shall cause the provider of each Qualified Maturity
     Agreement to deposit into the Principal Accumulation Account on or before
     the Expected Principal Distribution Date an amount equal to the aggregate
     outstanding principal balance of the Class A Notes on such Distribution
     Date; provided, however, that the Issuer may instead elect to fund all or a
           --------  -------
     portion of such deposit with the proceeds of the issuance of a new Series
     or with the Available Principal Collections with respect to such
     Distribution Date; and provided, further, that the Issuer shall in no event
                            --------  -------
     cause or permit the provider of any Qualified Maturity Agreement to fund
     under such Qualified Maturity Agreement unless there are sufficient funds
     on deposit in the Collection Account allocated to make required payments
     pursuant to Sections 4.4(a)(i) and (ii) for any Distribution Date falling
                 ------------------     ----
     on or after the funding under such Qualified Maturity Agreement. The amount
     deposited shall be applied on the Expected Principal Distribution Date
     pursuant to Section 4.4(d) as if the commencement of the Controlled
                 --------------
     Accumulation Period had not been suspended.

          (c) Each Qualified Maturity Agreement shall terminate at the close of
     business on the Expected Principal Distribution Date; provided, however,
                                                           --------  -------
     that the Issuer may terminate a Qualified Maturity Agreement prior to such
     Distribution Date, with notice to each Rating Agency, if (i) the Available
     Reserve Account Amount equals the Required Reserve Account Amount and (ii)
     one of the following events occurs: (A) the Issuer obtains a substitute
     Qualified Maturity Agreement, (B) the provider of the Qualified Maturity
     Agreement ceases to qualify as an Eligible Institution and the Issuer is
     unable to obtain a substitute Qualified Maturity Agreement or (C) a Pay Out
     Event occurs. In addition, the Issuer may terminate a Qualified Maturity
     Agreement prior to the later of (i) the date on which the Controlled
     Accumulation Period was scheduled to begin, before giving effect to the
     suspension of the Controlled Accumulation Period, and (b) the date to which
     the commencement of the Controlled Accumulation Period may be postponed
     pursuant to Section 4.15 (as determined on the Determination Date preceding
                 ------------
     the date of such termination), in which case the commencement of the
     Controlled Accumulation Period shall be determined as if the Issuer had not
     elected to suspend such commencement. In the event that the provider of a
     Qualified Maturity Agreement ceases to qualify as an Eligible Institution,
     the Issuer shall use its best efforts to obtain a substitute Qualified
     Maturity Agreement.

                                       26

<PAGE>

          (d) If a Qualified Maturity Agreement is terminated prior to the
     earlier of the Expected Principal Distribution Date and the commencement of
     the Rapid Amortization Period and the Issuer does not obtain a substitute
     Qualified Maturity Agreement, the Controlled Accumulation Period shall
     commence on the latest of (i) March 1, 2004, (ii) at the election of the
     Issuer, the date to which the commencement of the Controlled Accumulation
     Period may be postponed pursuant to Section 4.14 (as determined on the date
                                         ------------
     of such termination) and (iii) the first day of the Monthly Period
     following the date of such termination.

          Section 4.16 Insurance Policies. (a) On the Closing Date, the Issuer
                       ------------------
     shall enter into the Insurance Agreement, pursuant to which the Policies
     will be issued for the benefit of the Series 2001-A Noteholders and the
     Counterparty.

          (b) Prior to 12:00 noon, New York City time, on the third Business Day
     preceding each Distribution Date, the Servicer shall determine whether
     there will be a Deficiency Amount on the following Distribution Date. If
     the Servicer determines that there will be a Deficiency Amount on the
     following Distribution Date, the Servicer shall complete the notice in the
     form set forth as an exhibit to the related Policy (the "Notice") and
     submit such Notice in accordance with the related Policy to the Insurer no
     later than 3:00 p.m., New York time, on such Business Day, as a claim for
     an Insured Obligation in an amount equal to such Deficiency Amount. The
     Insurer shall remit or cause to be remitted to the Trustee such Deficiency
     Amount in accordance with the terms of the related Policy.

          (c) The Indenture Trustee shall (i) receive as attorney-in-fact of the
     applicable owners an Insured Obligation from the Insurer and (ii)
     distribute the same to (a) the Class A Noteholders as provided in
     subsections 5.2(a) and (b) to the extent that such amounts relate to
     ------------------     ---
     Monthly Interest or principal of the Class A Notes, respectively, and (b)
     the Counterparty or the Servicer to the extent that such amounts relate to
     Net Swap Payments or Monthly Servicing Fees, respectively. Any and all
     Insured Obligations disbursed by the Indenture Trustee from claims made
     under the Policies shall not be considered payment by the Issuer with
     respect to the Class A Notes or other applicable obligations, nor shall
     such payments discharge the obligation of the Issuer with respect to the
     Class A Notes or other obligations, and the Insurer shall become the owner
     of such unpaid amounts due from the Issuer in respect of Insured
     Obligations.

          If on any Distribution Date, the Indenture Trustee or the Servicer
     determines that the Insurer has paid more under any Policy than is required
     by the terms hereof, the Indenture Trustee shall promptly return such
     excess to the Insurer.

          The Indenture Trustee shall keep a complete and accurate record of the
     amount of the Insured Obligations paid. The Insurer shall have the right to
     inspect such record during normal business hours upon prior notice to the
     Indenture Trustee.

                                       27

<PAGE>

          (d) So long as no Control Transfer Event shall have occurred and be
     continuing, the Insurer shall be deemed to be the sole Holder of the Series
     2001-A Notes for the purpose of exercising voting rights and the giving of
     any consents, approvals, instructions, directions, declarations and notices
     relating to the Series 2001-A Notes. However, for any amendment or waiver
     requiring the consent of all affected Noteholders, the consent of the
     Insurer and all affected Noteholders will be required.

          Section 4.17 Swap. (a) On or prior to the Closing Date, the Owner
                       ----
     Trustee shall, on behalf of the Issuer, enter into the Swap with the
     Counterparty for the benefit of the Noteholders. The aggregate notional
     amount under the Swap shall, at any time, be equal to the Note Principal
     Balance at such time. Net Swap Receipts and early termination payments
     payable by the Counterparty shall be deposited by the Indenture Trustee in
     the Collection Account on the day received and treated as Available Finance
     Charge Collections. On any Distribution Date when there shall be a Net Swap
     Payment, such Net Swap Payments shall be paid as provided in Section
                                                                  -------
     4.4(a)(i). On any Distribution Date when there shall be an early
     ---------
     termination payment or any other miscellaneous payment payable by the
     Issuer to the Counterparty, such amount shall be paid as provided in
     Section 4.4(a)(xi).
     ------------------

          (b) Each Swap shall be in substantially the same form as the initial
     Swap attached hereto as Exhibit E.
                             ---------

          (c) The Servicer may, upon (i) satisfaction of the Rating Agency
     Condition and, (ii) unless a Control Transfer Event has occurred, receipt
     of written consent from the Insurer (which consent shall not be
     unreasonably withheld), and, when required under the terms of the existing
     Swap, shall, obtain a replacement Swap.

                                    ARTICLE V

                        Delivery of Series 2001-A Notes;
               Distributions; Reports to Series 2001-A Noteholders
               ---------------------------------------------------

          Section 5.1 Delivery and Payment for the Series 2001-A Notes.
                      ------------------------------------------------

          The Issuer shall execute and issue, and the Indenture Trustee shall
     authenticate, the Series 2001-A Notes in accordance with Section 2.3 of the
                                                              -----------
     Indenture. The Indenture Trustee shall deliver the Series 2001-A Notes to
     or upon the written order of the Trust when so authenticated.

          Section 5.2 Distributions.
                      -------------

          (a) On each Distribution Date, the Paying Agent shall distribute to
     each Class A Noteholder of record on the related Record Date (other than as
     provided in Section 11.2 of the Indenture) such Class A Noteholder's pro
                 ------------
     rata share of the amounts held by the Paying Agent that are allocated and
     available on such

                                       28

<PAGE>

     Distribution Date to pay interest on the Class A Notes pursuant to this
     Indenture Supplement, including amounts made available as a result of any
     draw on the Policies.

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

          (c) The distributions to be made pursuant to this Section 5.2 are
                                                            -----------
     subject to the provisions of Sections 2.6, 6.1 and 7.1 of the Transfer and
                                  ------------  ---     ---
     Servicing Agreement, Section 11.2 of the Indenture and Section 7.1 of this
                          ------------                      -----------
     Indenture Supplement.

          (d) Except as provided in Section 11.2 of the Indenture with respect
                                    ------------
     to a final distribution, distributions to Series 2001-A Noteholders
     hereunder shall be made by (i) check mailed to each Series 2001-A
     Noteholder (at such Noteholder's address as it appears in the Note
     Register), except that for any Series 2001-A Notes registered in the name
     of the nominee of a Clearing Agency, such distribution shall be made by
     wire transfer of immediately available funds and (ii) without presentation
     or surrender of any Series 2001-A Note or the making of any notation
     thereon.

          Section 5.3 Reports and Statements to Series 2001-A Noteholders.
                      ---------------------------------------------------

          (a) On each Distribution Date, the Paying Agent, on behalf of the
     Indenture Trustee, shall forward to each Series 2001-A Noteholder a
     statement substantially in the form of Exhibit C prepared by the Servicer.
                                            ---------

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

          (c) A copy of each statement or certificate provided pursuant to
     paragraph (a) or (b) may be obtained by any Series 2001-A Noteholder by a
     request in writing to the Servicer.

          (d) On or before January 31 of each calendar year, beginning with
     January 31, 2002, the Paying Agent, on behalf of the Indenture Trustee,
     shall furnish or cause to be furnished to each Person who at any time
     during the preceding calendar year was a Series 2001-A Noteholder, a
     statement prepared by the Servicer

                                       29

<PAGE>

     containing the information which is required to be contained in the
     statement to Series 2001-A Noteholders, as set forth in paragraph (a)
     above, aggregated for such calendar year or the applicable portion thereof
     during which such Person was a Series 2001-A Noteholder, together with
     other information as is required to be provided by an issuer of
     indebtedness under the Code. Such obligation of the Paying Agent shall be
     deemed to have been satisfied to the extent that substantially comparable
     information shall be provided by the Servicer pursuant to any requirements
     of the Code as from time to time in effect.

                                   ARTICLE VI

               Series 2001-A Pay Out Events and Events of Default
               --------------------------------------------------

          Section 6.1 Series 2001-A Pay Out Events. If any one of the following
                      ----------------------------
     events shall occur with respect to the Series 2001-A Notes:

          (a) failure on the part of the Seller or the "Seller" under the
     Pooling and Servicing Agreement (i) to make any payment or deposit required
     to be made by the Seller by the terms of the Transfer and Servicing
     Agreement, the Pooling and Servicing Agreement, the Indenture or this
     Indenture Supplement on or before the date occurring five (5) Business Days
     after the date such payment or deposit is required to be made therein or
     herein or (ii) duly to observe or perform in any material respect any other
     covenants or agreements of the Seller set forth in the Transfer and
     Servicing Agreement, the Pooling and Servicing Agreement, the Indenture or
     this Indenture Supplement, which failure has a material adverse effect on
     the Series 2001-A Noteholders and which continues unremedied for a period
     of forty-five (45) days after the date on which written notice of such
     failure, requiring the same to be remedied, shall have been given to the
     Seller by the Indenture Trustee, or to the Seller and the Indenture Trustee
     by any Holder of the Series 2001-A Notes;

          (b) any representation or warranty made by the Seller in the Transfer
     and Servicing Agreement or, prior to the SMT Termination Date, by the
     "Seller" under the Pooling and Servicing Agreement in the Pooling and
     Servicing Agreement, or any information contained in a computer file or
     microfiche list required to be delivered by the Seller pursuant to Section
     2.1 or subsection 2.6(c) of the Transfer and Servicing Agreement or Section
                                                                        -------
     2.1 or subsection 2.6(c) of the Pooling and Servicing Agreement shall prove
     ---    -----------------
     to have been incorrect in any material respect when made or when delivered,
     which continues to be incorrect in any material respect for a period of
     forty-five (45) days after the date on which written notice of such
     failure, requiring the same to be remedied, shall have been given to the
     Seller by the Indenture Trustee, or to the Seller and the Indenture Trustee
     by any Holder of the Series 2001-A Notes and as a result of which the
     interests of the Series 2001-A Noteholders are materially and adversely
     affected for such period; provided, however, that a Series 2001-A Pay Out
                               --------  -------
     Event pursuant to this subsection 6.1(b) shall
                            -----------------

                                       30

<PAGE>

     not be deemed to have occurred hereunder if the Seller has accepted
     reassignment of the related Receivable, or all of such Receivables, if
     applicable, during such period in accordance with the provisions of the
     Transfer and Servicing Agreement or the Pooling and Servicing Agreement;

          (c) a failure by the Seller or the "Seller" under the Pooling and
     Servicing Agreement to convey Receivables in Additional Accounts to the
     Trust within ten (10) days after the day on which it is required to convey
     such Receivables pursuant to subsection 2.6(a) of the Transfer and
     Servicing Agreement or subsection 2.6(a) of the Pooling and Servicing
     Agreement;

          (d) any Servicer Default shall occur;

          (e) the average of the Portfolio Yields for any three consecutive
     Monthly Periods is reduced to a rate which is less than the sum of the
     average of the Base Rates for such period and the average of the Default
     Amount Rates for such period; it being understood that, for purposes of
     such calculation, the result of the Portfolio Yield for the first Monthly
     Period, minus the sum of the Base Rate and the Default Amount Rate for the
     first Monthly Period shall be equal to the Modified Excess Spread
     Percentage for the first Monthly Period;

          (f) the Note Principal Balance shall not be paid in full on the
     Expected Principal Distribution Date;

          (g) prior to the SMT Termination Date, a Trust Pay Out Event shall
     occur under (and as defined in) the Pooling and Servicing Agreement;

          (h) any draw shall be made on any Policy in accordance with the terms
     thereof;

          (i) Insurer shall by notice to the Seller, the Servicer and the
     Indenture Trustee declare a Pay Out Event in accordance with Section 5.01
                                                                  ------------
     of the Insurance Agreement (which section is set forth in its entirety in
     Exhibit H) at any time prior to a Control Transfer Event;
     ---------

          (j) the Counterparty shall fail to make any net payment required to be
     made by it under the Swap, and such failure is not cured within five
     Business Days, or the Swap shall terminate prior to the Series 2001-A Final
     Maturity Date and the Issuer shall fail to enter into a replacement Swap in
     accordance with subsection 4.17(c);
                     ------------------

          (k) without limiting the foregoing, the occurrence of an Event of
     Default with respect to Series 2001-A; or

          (l) the occurrence of an Insolvency Event relating to the Insurer;

                                       31

<PAGE>

     then, in the case of any event described in subsection (a), (b) or (d),
                                                 --------------  ---    ---
     after the applicable grace period, if any, set forth in such subparagraphs,
     either the Indenture Trustee or the Holders of Series 2001-A Notes
     evidencing more than 50% of the aggregate unpaid principal amount of Series
     2001-A Notes by notice then given in writing to the Seller and the Servicer
     (and to the Indenture Trustee if given by the Series 2001-A Noteholders)
     may declare that a "Series Pay Out Event" with respect to Series 2001-A (a
     "Series 2001-A Pay Out Event") has occurred as of the date of such notice,
      ---------------------------
     and, in the case of any event described in subsection(c), (e), (f), (g),
                                                -------------  ---  ---  ---
     (h), (i), (j), (k) or (l), a Series 2001-A Pay Out Event shall occur
     ---  ---  ---  ---    ---
     without any notice or other action on the part of the Indenture Trustee or
     the Series 2001-A Noteholders immediately upon the occurrence of such
     event.

          Section 6.2 Series 2001-A Events of Default. (a) For so long as no
                      -------------------------------
     Control Transfer Event has occurred, the Events of Default for Series
     2001-A shall include, in addition to the Events of Default specified in the
     Indenture, any one of the following events (whatever the reason for such
     Event of Default and whether it shall be voluntary or involuntary or be
     effected by operation of law or pursuant to any judgment, decree or order
     of any court or any order, rule or regulation of any administrative or
     governmental body):

               (i) default in the payment of interest on the Series 2001-A Notes
          when the same becomes due and payable, and such default shall continue
          for a period of twenty-eight (28) days;

               (ii) default in the observance or performance of any covenant or
          agreement of the Issuer made in the Indenture made in respect of the
          Series 2001-A Notes (other than a covenant or agreement, a default in
          the observance or performance of which is elsewhere in this Section
                                                                      -------
          6.2 or in Section 5.2 of the Indenture specifically dealt with) (all
          ---       -----------
          of such covenants and agreements in the Indenture which are not
          expressly stated to be for the benefit of a particular Series being
          deemed to be in respect of the Notes of Series 2001-A for this
          purpose) in any material respect and such default shall continue or
          not be cured for a period of forty-five (45) days after there shall
          have been given, by registered or certified mail, return receipt
          requested to the Issuer and the Indenture Trustee by the Insurer, a
          written notice specifying such default and requiring it to be remedied
          and stating that such notice is a "Notice of Default" hereunder; or
                                             -----------------

               (iii) any Servicer Default.

          (b) If an Event of Default for Series 2001-A shall have occurred and
     be continuing and the Series 2001-A Notes have been accelerated pursuant to
     Section 5.3, so long as no Control Transfer Event has occurred, the Insurer
     -----------
     shall have the right, but not the obligation, to (i) exercise the rights of
     the Series 2001-A Noteholders described in Section 5.5 of the Indenture,
                                                -----------
     and (ii) to pay all or any portion of the outstanding principal balance of
     the Series 2001-A Notes prior to the

                                       32

<PAGE>

     Series 2001-A Final Maturity Date. Following the occurrence of an Event of
     Default for Series 2001-A, the Indenture Trustee shall continue to submit
     claims under the Policies as necessary to enable the Issuer to continue to
     make payments on each Distribution Date in accordance with the terms of
     this Indenture Supplement.

          Section 6.3 Declarations of Default. So long as no Control Transfer
                      -----------------------
     Event shall have occurred and be continuing, neither the Indenture Trustee
     nor the Class A Noteholders may declare an Event of Default with respect to
     the Series 2001-A Notes. So long as no Control Transfer Event shall have
     occurred and be continuing, an Event of Default with respect to the Series
     2001-A Notes shall occur only upon delivery by the Insurer to the Indenture
     Trustee of notice of the occurrence of an Event of Default.

                                   ARTICLE VII

   Redemption of Series 2001-A Notes; Final Distributions; Series Termination
   --------------------------------------------------------------------------

          Section 7.1 Optional Redemption of Series 2001-A Notes; Final
                      -------------------------------------------------
     Distributions.
     -------------

          (a) On any day occurring on or after the date on which the outstanding
     principal balance of the Series 2001-A Notes is reduced to 10% or less of
     the initial outstanding principal balance of Series 2001-A Notes, the
     Servicer shall have the option to redeem the Series 2001-A Notes, at a
     purchase price equal to (i) if such day is a Distribution Date, the
     Reassignment Amount for such Distribution Date or (ii) if such day is not a
     Distribution Date, the Reassignment Amount for the Distribution Date
     following such day; provided that all amounts due and owing to the Insurer
     pursuant to the Insurance Agreement shall have been paid to the Insurer.

          (b) The Issuer shall give the Servicer and the Indenture Trustee at
     least thirty (30) days prior written notice of the date on which the Issuer
     intends to exercise such optional redemption. Not later than 12:00 noon,
     New York City time, on such day the Issuer shall deposit into the
     Collection Account in immediately available funds the excess of the
     Reassignment Amount over the amount, if any, on deposit in the Principal
     Accumulation Account. Such redemption option is subject to payment in full
     of the Reassignment Amount. Following such deposit into the Collection
     Account in accordance with the foregoing, the Collateral Amount for Series
     2001-A shall be reduced to zero and the Series 2001-A Noteholders shall
     have no further security interest in the Receivables. The Reassignment
     Amount shall be distributed as set forth in subsection 7.1(d).
                                                 -----------------

          (c) (i) The amount to be paid by the Seller with respect to Series
     2001-A in connection with a reassignment of Receivables to the Seller
     pursuant to Section 2.4(e) of the Transfer and Servicing Agreement shall
                 --------------
     equal the Reassignment

                                       33

<PAGE>

     Amount for the first Distribution Date following the Monthly Period in
     which the reassignment obligation arises under the Transfer and Servicing
     Agreement.

               (ii) The amount to be paid by the Seller with respect to Series
     2001-A in connection with a repurchase of the Notes pursuant to Section 7.1
                                                                     -----------
     of the Transfer and Servicing Agreement shall equal the Reassignment Amount
     for the Distribution Date of such repurchase.

          (d) With respect to the Reassignment Amount deposited into the
     Collection Account pursuant to Section 7.1, the Indenture Trustee shall, in
                                    -----------
     accordance with the written direction of the Servicer, not later than 12:00
     noon, New York City time, on the related Distribution Date, make deposits
     or distributions of the following amounts (in the priority set forth below
     and, in each case, after giving effect to any deposits and distributions
     otherwise to be made on such date) in immediately available funds: (i) (x)
     the Note Principal Balance on such Distribution Date will be distributed to
     the Paying Agent for payment to the Class A Noteholders and (y) an amount
     equal to the sum of (A) Monthly Interest for such Distribution Date, (B)
     any Monthly Interest previously due but not distributed to the Class A
     Noteholders on a prior Distribution Date and (C) the amount of Additional
     Interest, if any, for such Distribution Date and any Additional Interest
     previously due but not distributed to the Class A Noteholders on any prior
     Distribution Date, will be distributed to the Paying Agent for payment to
     the Class A Noteholders, (ii) any unpaid Monthly Insurance Premiums,
     Reimbursement Amounts, interest thereon and other amounts payable to the
     Insurer under the Insurance Agreement will be distributed to the Insurer
     (iii) any amounts owed to the Counterparty under the Swap shall be
     distributed to the Counterparty and (iv) any excess shall be released to
     the Issuer.

          (e) Notwithstanding anything to the contrary in this Indenture
     Supplement, the Indenture or the Transfer and Servicing Agreement, all
     amounts distributed to the Paying Agent pursuant to subsection 7.1(d) for
                                                         -----------------
     payment to the Series 2001-A Noteholders shall be deemed distributed in
     full to the Series 2001-A Noteholders on the date on which such funds are
     distributed to the Paying Agent pursuant to this Section 7.1 and shall be
                                                      -----------
     deemed to be a final distribution pursuant to Section 11.2 of the
                                                   ------------
     Indenture.

          Section 7.2 Series Termination. On the Series 2001-A Final Maturity
                      ------------------
     Date, the right of the Series 2001-A Noteholders to receive payments from
     the Issuer will be limited solely to the right to receive payments pursuant
     to Section 5.5 of the Indenture.
        -----------

                                       34

<PAGE>

                                  ARTICLE VIII

                            Miscellaneous Provisions
                            ------------------------

          Section 8.1 Ratification of Indenture; Amendments. As supplemented by
                      -------------------------------------
     this Indenture Supplement, the Indenture is in all respects ratified and
     confirmed and the Indenture as so supplemented by this Indenture Supplement
     shall be read, taken and construed as one and the same instrument. This
     Indenture Supplement may be amended only by a Supplemental Indenture
     entered in accordance with the terms of Section 10.1 or 10.2 of the
                                             ------------    ----
     Indenture. For purposes of the application of Section 10.2 to any amendment
                                                   ------------
     of this Indenture Supplement, only the vote of the Series 2001-A
     Noteholders shall be required. The Issuer and Indenture Trustee shall not
     enter into any amendment to this Indenture Supplement to provide for the
     termination of the Swap, any Policy or any Qualified Maturity Agreement
     unless the Rating Agency Condition is satisfied with respect to such
     amendment; it being understood that (i) the Servicer may obtain a
                -------------------
     replacement Swap in accordance with Section 4.17 and (ii) the Issuer may
                                         ------------
     terminate a Qualified Maturity Agreement in accordance with Section 4.15,
                                                                 ------------
     so long as such replacement or termination is not affected through the
     amendment of this Indenture Supplement.

          Section 8.2 Form of Delivery of the Series 2001-A Notes. The Series
                      -------------------------------------------
     2001-A Notes shall be Book-Entry Notes and shall be delivered as Registered
     Notes as provided in Section 2.1 of the Indenture.
                          -----------

          Section 8.3 Counterparts. This Indenture Supplement may be executed in
                      ------------
     two or more counterparts, and by different parties on separate
     counterparts, each of which shall be an original, but all of which shall
     constitute one and the same instrument.

          Section 8.4 GOVERNING LAW. THIS INDENTURE 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, PROVIDED, HOWEVER, THAT THE DUTIES AND OBLIGATIONS OF THE
     INDENTURE TRUSTEE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
     STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS.

          Section 8.5 Limitation of Liability. Notwithstanding any other
                      -----------------------
     provision herein or elsewhere, this Agreement has been executed and
     delivered by Bankers Trust Company, not in its individual capacity, but
     solely in its capacity as Owner Trustee of the Trust, in no event shall
     Bankers Trust Company in its individual capacity have any liability in
     respect of the representations, warranties, or obligations of the Trust
     hereunder or under any other document, as to all of which recourse shall be
     had solely to the assets of the Trust, and for all purposes of this
     Agreement and

                                       35

<PAGE>

     each other document, the Owner Trustee (as such or in its individual
     capacity) shall be subject to, and entitled to the benefits of, the terms
     and provisions of the Trust Agreement.

          Section 8.6 Rights of the Indenture Trustee. The Indenture Trustee
                      -------------------------------
     shall have herein the same rights, protections, indemnities and immunities
     as specified in the Master Indenture.

          Section 8.7 Third Party Beneficiary. This Indenture Supplement and the
                      -----------------------
     Indenture will inure to the benefit of the Insurer.

          Section 8.8 Inconsistency. In the event of any inconsistency between
                      -------------
     (a) the provisions of the Insurance Agreement set forth in Exhibits F, G
                                                                ----------  -
     and H and (b) the Insurance Agreement, the provisions of the Insurance
         -
     Agreement shall prevail.

          Section 8.9 Collateral Series Supplement. Section 10(h) of the
                      ----------------------------  -------------
     Collateral Series Supplement, dated as of December 1, 2000 (the "Collateral
                                                                      ----------
     Series Supplement"), to the Pooling and Servicing Agreement shall not apply
     -----------------
     to the Collateral Series (as defined in the Collateral Series Supplement)
     related to the Series 2001-A Notes.

          Section 8.10 Increase of Collateral Amount. The Seller may, in its
                       -----------------------------
     sole discretion, increase the Collateral Amount to cure any breach set
     forth in Section 4.02(g)(i) of the Insurance Agreement; provided that,
                                                             --------
     after giving effect to any such increase, the Aggregate Principal Balance
     shall not be less than the Minimum Aggregate Principal Balance; and
     provided, further that the Servicer may, at the direction of the Seller,
     --------  -------
     retain Principal Collections otherwise distributable to the holders of the
     Seller Interest in the Excess Funding Account for the purpose of increasing
     the Aggregate Principal Balance so that the Aggregate Principal Balance
     shall at least equal the Minimum Aggregate Principal Balance after giving
     effect to such increase; and provided further that the Seller may, in its
                                  -------- -------
     sole discretion, decrease the Collateral Amount if such decrease would not
     cause a breach of the covenant set forth in Section 4.02(g)(i) of the
     Insurance Agreement.

          Section 8.11 Perfection Representations and Warranties. The parties
                       -----------------------------------------
     hereto agree that the representations, warranties and covenants set forth
     in Schedule I shall be a part of this Indenture Supplement for all
     purposes.

                            [SIGNATURE PAGES FOLLOW]

                                       36

<PAGE>

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

                                                SPIEGEL CREDIT CARD MASTER NOTE
                                                TRUST, as Issuer

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

                                                Name: /s/ Eileen M. Hughes
                                                      --------------------------
                                                Title: Vice President

                                                THE BANK OF NEW YORK,
                                                as Indenture Trustee

                                                Name: /s/ Robert D. Foltz
                                                      --------------------------
                                                Title: Agent

     Signature page to
     Indenture Supplement

                                       37

<PAGE>

     Acknowledged and Accepted:

     FIRST CONSUMERS NATIONAL BANK,
     as Servicer

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

     Acknowledged and Accepted:

     SPIEGEL CREDIT CORPORATION III,
     as Seller

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

     Signature page to
     Indenture Supplement

                                       38<PAGE>

                                                                   Exhibit 10.37

                                                                  Execution Copy
                                                                  --------------

                      SPIEGEL CREDIT CARD MASTER NOTE TRUST

                                     Issuer,

                                       and

                              THE BANK OF NEW YORK

                                Indenture Trustee

                      SERIES 2001-VFN INDENTURE SUPPLEMENT

                          Dated as of October 17, 2001

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                               Page
<S>            <C>                                                                              <C>
ARTICLE I      CREATION OF THE SERIES 2001-VFN NOTES.............................................1
     Section 1.1     Designation.................................................................1
ARTICLE II     DEFINITIONS.......................................................................1
     Section 2.1     Definitions.................................................................1
     Section 2.2     Terms......................................................................13
     Section 2.3     Interpretive Rules.........................................................14
     Section 2.4     Calculations...............................................................14
ARTICLE III    Optional Redemption of Notes; Final Distributions................................14
     Section 3.1     Optional Redemption........................................................14
     Section 3.2     Delivery and Payment for the Series 2001-VFN Notes.........................15
     Section 3.3     Private Placement of Class A Notes; Form of Delivery of
                     Series 2001-VFN Notes......................................................15
ARTICLE IV     RIGHTS OF NOTEHOLDERS AND  ALLOCATION AND
               APPLICATION OF COLLECTIONS.......................................................16
     Section 4.1     [Reserved].................................................................16
     Section 4.2     [Reserved].................................................................16
     Section 4.3     Allocations................................................................16
     Section 4.4     Investor Charge-offs.......................................................19
     Section 4.5     Monthly Payments...........................................................19
     Section 4.6     Payment of Note Interest...................................................22
     Section 4.7     Payment of Note Principal..................................................22
     Section 4.8     Increase and Decrease of the Excess Collateral Amount......................23
     Section 4.9     Seller's or Servicer's Failure to Make a Deposit or Payment................24
     Section 4.10    Reallocated Principal Collections..........................................24
     Section 4.11    Class A Increases..........................................................25
     Section 4.12    Notice of Note Rate........................................................25
     Section 4.13    Suspension of the Revolving Period.........................................25
     Section 4.14    Maximum Class A Collateral Amount..........................................26
     Section 4.15    Shared Principal Collections...............................................27
     Section 4.16    Excess Finance Charge Collections..........................................27
ARTICLE V      DISTRIBUTIONS AND REPORTS TO NOTEHOLDERS.........................................28
     Section 5.1     Distributions..............................................................28
</TABLE>

                                      -i-

<PAGE>

                                Table of Contents
                                   (continued)

<TABLE>
<CAPTION>
                                                                                               Page
<S>            <C>                                                                              <C>
     Section 5.2     Reports to Investors.......................................................28
ARTICLE VI     SERIES PAY-OUT EVENTS............................................................29
     Section 6.1     Series Pay-Out Events......................................................29
ARTICLE VII    MISCELLANEOUS....................................................................31
     Section 7.1     Terms Change Condition.....................................................31
     Section 7.2     Permitted Successor Servicer...............................................32
     Section 7.3     Successors and Assigns.....................................................32
     Section 7.4     Final Distribution.........................................................32
     Section 7.5     Amendments.................................................................32
     Section 7.6     Effectiveness..............................................................33
     Section 7.7     Ratification of Indenture..................................................33
     Section 7.8     Counterparts...............................................................33
     Section 7.9     GOVERNING LAW..............................................................33
     Section 7.10    Consents...................................................................33
     Section 7.11    Certain Calculations.......................................................33
     Section 7.12    Repurchase Requests........................................................34
     Section 7.13    Perfection Representations, Warranties and Covenants. .....................35
     Section 7.14    Rights of the Indenture Trustee............................................35
     Section 7.15    Limitation of Liability....................................................35
</TABLE>

Exhibit A   Form of Class A Note
Exhibit B   Form of Monthly Payment Instructions and Notice
Exhibit C   Form of Investor Report

Schedule 1  Perfection Representation, Warranties  and Covenants

                                      -ii-

<PAGE>

     SERIES 2001-VFN INDENTURE SUPPLEMENT, dated as of October 17, 2001 (the
"Indenture Supplement"), between SPIEGEL CREDIT CARD MASTER NOTE TRUST, a trust
 --------------------
organized and existing under the laws of the State of Illinois (herein, the
"Issuer" or the "Trust"), and THE BANK OF NEW YORK, a banking corporation
 ------          -----
organized and existing under the laws of the State of New York, not in its
individual capacity, but solely as indenture trustee (herein, together with its
successors in the trusts thereunder as provided in the Master Indenture referred
to below, the "Indenture Trustee") under the Master Indenture, dated as of
               -----------------
December 1, 2000 (the "Master Indenture") between the Issuer and the Indenture
                       ----------------
Trustee (the Master Indenture, together with this Indenture Supplement, the
"Indenture").
 ---------

     Pursuant to Section 2.12 of the Indenture, the Seller may direct the Issuer
                 ------------
to issue one or more Series of Notes. The Principal Terms of this Series are set
forth in this Indenture Supplement to the Indenture.

                                    ARTICLE I

                      CREATION OF THE SERIES 2001-VFN NOTES

     Section 1.1 Designation. There is hereby created a Series of Notes to be
                 -----------
issued pursuant to the Indenture to be known as the "Series 2001-VFN Notes." The
                                                     ---------------------
Series 2001-VFN Notes shall consist of the "Series 2001-VFN Class A Variable
Funding Asset Backed Notes" (the "Class A Notes"). The Class A Notes shall be
                                  -------------
substantially in the form of Exhibit A to this Indenture Supplement.
                             ---------

                                   ARTICLE II

                                   DEFINITIONS

     Section 2.1 Definitions.
                 -----------

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

     "Accrual Period" means the period from and including a Distribution Date
      --------------
(or in the case of the initial Accrual Period, the Closing Date) to but
excluding the succeeding Distribution Date.

     "Administrative Agent" means MGT or any successor in that capacity pursuant
      --------------------
to the Note Purchase Agreement.

     "Aggregate Class A Increase Amount" means the cumulative amount of Class A
      ---------------------------------
Increase Amounts.

<PAGE>

     "Aggregate Excess Collateral Amount Increase Amount" means the cumulative
      --------------------------------------------------
amount of Excess Collateral Amount Increase Amounts.

     "Allocation Percentage" means, on any date of determination:
      ---------------------

     (a) when used with respect to Principal Receivables during the Revolving
Period, the percentage equivalent of a fraction the numerator of which shall be
the Collateral Amount on the preceding Business Day (taking into account all
Class A Increases and Excess Collateral Amount Increases effected on such date
of determination or any reduction in the Collateral Amount on such date of
determination) and the denominator of which shall be the greater of (i) the
Aggregate Principal Receivables as of the end of such day and (ii) the sum of
the numerators used to calculate the Allocation Percentages with respect to
Principal Receivables on such day for all Series outstanding;

     (b) when used with respect to Principal Receivables during an Amortization
Period, the percentage equivalent of a fraction the numerator of which shall be
the Collateral Amount as of the end of the day on the last day of the Revolving
Period and the denominator of which shall be the greater of (i) the Aggregate
Principal Receivables as of the end of the Business Day preceding such date of
determination and (ii) the sum of the numerators used to calculate the
Allocation Percentages for allocations with respect to Principal Receivables for
all outstanding Series on such date of determination;

     (c) when used with respect to Finance Charge Receivables during the
Revolving Period, any Limited Amortization Period and the Controlled
Amortization Period and with respect to Receivables in Defaulted Accounts at any
time, the percentage equivalent of a fraction the numerator of which shall be
the Collateral Amount as of the end of the day on the preceding Business Day
(taking into account all Class A Increases and Excess Collateral Amount
Increases effected on such date of determination or any reduction in the
Collateral Amount on such date of determination) and the denominator of which
shall be the greater of (i) the Aggregate Principal Receivables as of the end of
the Business Day preceding such date of determination and (ii) the sum of the
numerators used to calculate the Allocation Percentages for allocations with
respect to Finance Charge Receivables or Defaulted Accounts, as applicable, for
all outstanding Series on such date of determination;

     (d) when used with respect to Finance Charge Receivables during the Rapid
Amortization Period, the percentage equivalent of a fraction the numerator of
which shall be the Collateral Amount as of the end of the day on the last day of
the Revolving Period and the denominator of which shall be the greater of (i)
the Aggregate Principal Receivables as of the end of the day on the Business Day
preceding such date of determination and (ii) the sum of the numerators used to
calculate the Allocation Percentages for allocations with respect to Finance
Charge Receivables for all outstanding Series on such date of determination.

                                       2

<PAGE>

     "Amortization Period" means the Controlled Amortization Period, the Limited
      -------------------
Amortization Period or the Rapid Amortization Period.

     "Average Allocation Percentage" means with respect to any Allocation
      -----------------------------
Percentage for any Monthly Period the sum of the Allocation Percentages as of
the close of business for each day in such Monthly Period divided by the number
of days in such Monthly Period.

     "Average Class A Collateral Amount" means for any Monthly Period the sum of
      ---------------------------------
the Class A Collateral Amounts as of the close of business for each day in such
Monthly Period, divided by the number of days in such Monthly Period.

     "Average Collateral Amount" means for any Monthly Period the sum of the
      -------------------------
Collateral Amounts as of the close of business for each day in such Monthly
Period, divided by the number of days in such Monthly Period.

     "Base Excess Collateral Amount Percentage" means, with respect to any date
      ----------------------------------------
of determination, 36.00%; provided, that the Seller may reduce the Base Excess
                          --------
Collateral Amount Percentage from time to time so long as (a) the Rating Agency
Condition has been satisfied with respect to such reduction, (b) the Seller
shall have obtained the prior written consent of the Administrative Agent and
the Conduit Managing Agents, and (c) the Indenture Trustee and the Seller shall
have received an opinion of Rooks, Pitts and Poust or other outside tax counsel
to the effect that for federal income tax purposes such reduction will not cause
(i) the outstanding Class A Notes to be characterized other than as indebtedness
or an interest in a partnership or (ii) the Trust to be taxable as a corporation
or publicly traded partnership.

     "Base Rate" means, with respect to any Monthly Period, (a) the sum of (i)
      ---------
the Note Interest for the Accrual Period ending in the month following the end
of such Monthly Period and (ii) the amount of the Investor Monthly Servicing Fee
allocable to the Series 2001-VFN Notes in respect of such Monthly Period,
divided by (b) the Average Collateral Amount for the preceding Monthly Period,
multiplied by (c) 12.

     "Breakage Payments" is defined in the Note Purchase Agreement.
      -----------------

     "Change of Control" means that:
      -----------------

          (i) Spiegel shall fail to own, directly or indirectly, free and clear
     of all liens, security interests or other encumbrances, at least 51% of the
     outstanding shares of capital stock of FCNB, on a fully diluted basis; or

          (ii) the Otto family related investment entities shall fail to own or
     control at least 67% of the outstanding voting stock of Spiegel; or

                                       3

<PAGE>

          (iii) Spiegel shall fail to own, directly or indirectly, free and
     clear of all liens, security interests or other encumbrances, at least 100%
     of the outstanding shares of capital stock of the Seller; or

          (iv) Spiegel shall fail to own, directly or indirectly, free and clear
     of all liens, security interests or other encumbrances, at least 100% of
     the outstanding shares of capital stock, if any, of Spiegel Acceptance
     Corporation, but only if at the time of such failure Spiegel Acceptance
     Corporation continues to be a party to any of the Transaction Documents.

     "Class A Allocation Percentage" means, with respect to any date of
      -----------------------------
determination, (a) during the Revolving Period, the percentage equivalent of a
fraction, the numerator of which is the Class A Collateral Amount determined as
of the close of business on the Business Day immediately preceding such date of
determination and the denominator of which is the Collateral Amount determined
as of the close of business on such day and (b) during an Amortization Period,
the percentage equivalent of a fraction, the numerator of which is the Class A
Collateral Amount as of the close of business on the last day of the Revolving
Period and the denominator of which is the Collateral Amount as of the close of
business on such last day.

     "Class A Collateral Amount" means, on any date of determination, an amount
      -------------------------
equal to (a) the Initial Class A Collateral Amount, plus (b) the Aggregate Class
A Increase Amount, minus (c) the aggregate amount of payments of principal paid
to the Class A Noteholders pursuant to Section 4.7 or from the proceeds of
                                       -----------
issuance of a new Series pursuant to the final paragraph of Section 4.13 prior
                                                            ------------
to such date of determination, minus (d) the excess, if any, of the aggregate
amount of Class A Investor Charge Offs over Class A Investor Charge Offs
reimbursed pursuant to Section 4.5(d) prior to such date of determination.
                       --------------

     "Class A Expected Final Payment Date" means the January 2004 Distribution
      -----------------------------------
Date.

     "Class A Increase" means an increase in the Class A Collateral Amount
      ----------------
pursuant to Section 4.11.
            ------------

     "Class A Increase Amount" is defined in Section 4.11.
      -----------------------                ------------

     "Class A Increase Conditions" are set forth in Section 4.2 of the Note
      ---------------------------                   -----------
Purchase Agreement.

     "Class A Investor Charge Off" is defined in Section 4.4.
      ---------------------------                -----------

     "Class A Monthly Total Principal Allocation" is defined in Section 4.7.
      ------------------------------------------                -----------

     "Class A Note Rate" means, with respect to any Accrual Period, the per
      -----------------                                                 ---
annum rate equal to the percentage equivalent of a fraction (a) the numerator of
-----
which is the Note Interest for that Accrual Period, multiplied by a fraction the

                                       4

<PAGE>

numerator of which is 365 (or 366, in a leap year) and the denominator of which
is the number of days in that Accrual Period and (b) the denominator of which is
the Average Class A Collateral Amount during that Accrual Period.

     "Class A Noteholder" means the holder of record of any Class A Note.
      ------------------

     "Class A Notes" means any one of the Notes executed by the Seller and
      -------------
authenticated by or on behalf of the Indenture Trustee, substantially in the
form of Exhibit A.
        ---------

     "Class A Principal Allocation" means, with respect to any Deposit Date, an
      ----------------------------
amount equal to the product of (A) the Class A Allocation Percentage on the
Deposit Date for Principal Collections (or, during a Non-Renewal Amortization
Period, the Non-Renewing Allocation Percentage), (B) the Allocation Percentage
on the Deposit Date for Principal Collections and (C) the aggregate amount of
Principal Collections processed on such Deposit Date, all as pursuant to Section
                                                                         -------
4.3(b)(ii).
----------

     "Class Note Interest" is defined in the Note Purchase Agreement.
      -------------------

     "Closing Date" means the date of this Indenture Supplement.
      ------------

     "Collateral Amount" means, on any date of determination, the sum of (a) the
      -----------------
Class A Collateral Amount, plus (b) the Excess Collateral Amount on such date of
determination.

     "Commercial Paper" means commercial paper notes issued by any Conduit
      ----------------
Purchaser to fund or maintain its initial purchase of the Class A Notes and any
Class A Increase Amount.

     "Conduit Downgrade Event" means any action or other event related to the
      -----------------------
Trust that causes a Rating Agency to reduce, or withdraw, its rating of the
Commercial Paper issued by any Conduit Purchaser below the then current ratings
of the Commercial Paper issued by such Conduit Purchaser.

     "Conduit Managing Agent" is defined in the Note Purchase Agreement.
      ----------------------

     "Conduit Purchaser" is defined in the Note Purchase Agreement.
      -----------------

     "Controlled Amortization Period" means an Amortization Period commencing on
      ------------------------------
the day following the last day of the Revolving Period and continuing (a) to,
but not including, the commencement of the Rapid Amortization Period or (b) to,
and including, the earlier of (i) the Trust Termination Date and (ii) the Series
Termination Date.

     "Controlled Distribution Amount" means, for each Monthly Period which
      ------------------------------
commences during the Controlled Amortization Period, the sum of (a) one-twelfth
of the Class A Collateral Amount as of the last day of the Revolving Period,
plus

                                       5

<PAGE>

(b) the Deficit Controlled Distribution Amount for the preceding Monthly Period;
provided, that the Seller may, by written notice to the Administrative Agent
--------
delivered not less than five (5) Business Days prior to the related Distribution
Date, specify a greater Controlled Distribution Amount for that Distribution
Date (which shall be an integral multiple of $1,000,000).

     "Cycle" means, with respect to any Account, the monthly billing cycle for
      -----
such Account as determined in accordance with the Charge Account Guidelines as
in effect on the date of this Agreement.

     "Cycle Billing Date" means, with respect to any Account, each date on which
      ------------------
bills are processed for the Cycle which includes such Account.

     "Default Estimate" means, for any Monthly Period, an amount equal to the
      ----------------
product of (i) 1.5, multiplied by (ii) the arithmetic mean of the Investor
Default Amounts for the prior three Monthly Periods.

     "Deficit Controlled Distribution Amount" means, for each Monthly Period
      --------------------------------------
during the Controlled Amortization Period, the excess, if any, of the Controlled
Distribution Amount for such Monthly Period over the amount of principal
actually distributed with respect to the Class A Notes on the related
Distribution Date.

     "Delinquency Amount" means, with respect to any Monthly Period, the
      ------------------
aggregate amount of Receivables that were 31 or more days past due at the end of
such Monthly Period.

     "Determination Date" means with respect to any Monthly Period, the last
      ------------------
Business Day occurring in the first ten days of the succeeding calendar month.

     "Dilution" means, for any Monthly Period, the aggregate reduction in the
      --------
outstanding balance of receivables in the entire portfolio of FCNB Preferred
Charge accounts during such Monthly Period that are due to, without duplication,
(a) merchandise refused or returned by the obligor thereunder, (b) any rebate,
refund, chargeback or adjustment, (c) the assertion of a counterclaim or defense
by the obligor thereunder and either (i) the Servicer has agreed that such
counterclaim or defense is valid or (ii) a final nonappealable judgment or
decree has been entered in favor of such obligor in respect of such counterclaim
or defense by a court or arbitral body having jurisdiction thereof, and (d)
fraudulent or counterfeit charges, but only if and to the extent such fraudulent
or counterfeit charges are not included as charge-offs under the Charge Account
Guidelines.

     "Distribution Date" means the fifteenth day of each month, or, if such
      -----------------
fifteenth day is not a Business Day, the next succeeding Business Day.

     "Enhancement Increase Amount" means,
      ---------------------------

     (a) with respect to any Class A Increase Condition:

                                       6

<PAGE>

     after giving effect to the related Class A Increase Amount and the
     resulting increase in the Collateral Amount, the amount, if any, that when
     added to the Excess Collateral Amount will cause the Excess Collateral
     Amount Allocation Percentage (after giving effect to such increase) to
     equal the Required Excess Collateral Amount Percentage then in effect; and

     (b) with respect to any Terms Change Enhancement Increase Condition:

     if the resulting minimum payment is less than $15 but greater than or equal
     to $12.50, the amount, if any, that when added to the Excess Collateral
     Amount will cause the Excess Collateral Amount Allocation Percentage (after
     giving effect to such increase) to equal the sum of 1.5% and the Base
     Excess Collateral Amount Allocation Percentage then in effect; if the
     resulting minimum payment is less than $12.50, the amount, if any, that
     when added to the Excess Collateral Amount will cause the Excess Collateral
     Amount Allocation Percentage (after giving effect to such increase) to
     equal the sum of 3% and the Base Excess Collateral Amount Percentage then
     in effect.

     "Enhancement Increase Condition" means either a Class A Increase Condition
      ------------------------------
or a Terms Change Enhancement Increase Condition to the extent then continuing
in accordance with the terms thereof.

     "Excess Collateral Amount" means, on any date of determination, an amount
      ------------------------
equal to (a) the sum of (i) the Initial Excess Collateral Amount and (ii) the
Aggregate Excess Collateral Amount Increase Amount, minus (b) the aggregate
amount of payments of principal paid to the Excess Collateral Amount Holders
pursuant to Section 4.7 prior to such date of determination, minus (c) the
            -----------
excess, if any, of the sum of the aggregate amount of Excess Collateral Amount
Investor Charge Offs and Excess Collateral Amount Reallocated Amounts over
Excess Collateral Amount Investor Charge Offs and Excess Collateral Amount
Reallocated Amounts reimbursed pursuant to Section 4.5(d) prior to such date of
                                           --------------
determination.

     "Excess Collateral Amount Allocation Percentage" means, with respect to any
      ----------------------------------------------
date of determination, the percentage equivalent of a fraction, the numerator of
which is the Excess Collateral Amount determined as of the close of business on
the immediately preceding Business Day and the denominator of which is the
Collateral Amount determined as of the close of business on such Business Day.

     "Excess Collateral Amount Holder" means the holders of the Seller Interest.
      -------------------------------

     "Excess Collateral Amount Increase" means any increase in the Excess
      ---------------------------------
Collateral Amount as provided in Section 4.8.
                                 -----------

                                       7

<PAGE>

     "Excess Collateral Amount Increase Amount" means the amount of any Excess
      ----------------------------------------
Collateral Amount Increase pursuant to Section 4.8.
                                       -----------

     "Excess Collateral Amount Investor Charge Off" is defined in Section 4.4.
      --------------------------------------------                -----------

     "Excess Collateral Amount Percentage" means, for any date of determination,
      -----------------------------------
100%, minus the Class A Allocation Percentage on that date.

     "Excess Collateral Amount Reallocated Amounts" is defined in Section 4.10.
      --------------------------------------------                ------------

     "Excess Spread" is defined in Section 4.5(f).
      -------------                --------------

     "Excess Spread Percentage" means, for any Monthly Period, the difference
      ------------------------
between the Portfolio Yield and the Base Rate for such Monthly Period.

     "FCCCMNT Indenture Supplement" is defined in the Note Purchase Agreement.
      ----------------------------

     "Finance Charge Shortfall" is defined in Section 4.16.
      ------------------------                ------------

     "Funding Costs" means any Breakage Payments and any additional costs
      -------------
payable pursuant to Section 13.4 or 13.5 of the Note Purchase Agreement, to the
                    ------------    ----
extent not paid pursuant to the Note Purchase Agreement.

     "Initial Class A Collateral Amount" means $426,000,000.
      ---------------------------------

     "Initial Collateral Amount" means the sum of the Initial Class A Collateral
      -------------------------
Amount and the Initial Excess Collateral Amount.

     "Initial Excess Collateral Amount" means $239,625,000.
      --------------------------------

     "Investor Charge Off" means a Class A Investor Charge Off or an Excess
      -------------------
Collateral Amount Investor Charge Off.

     "Investor Default Amount" means, for any Monthly Period, an amount equal to
      -----------------------
the product of (a) the Default Amount for such Monthly Period and (b) the
Average Allocation Percentage for such Monthly Period.

     "Investor Monthly Servicing Fee" means, for any Monthly Period, an amount
      ------------------------------
equal to the product of (a) the Average Collateral Amount for that Monthly
Period, (b) the applicable Series Servicing Fee Percentage and (c) a fraction,
the numerator of which is the number of days in that Monthly Period and the
denominator which is 365 (or 366, when applicable).

                                       8

<PAGE>

     "Investor Uncovered Dilution Amount" means, for any Distribution Date, an
      ----------------------------------
amount equal to the Series Share of shortfalls in Deposit Obligations that is
allocated to Series 2001-VFN pursuant to Section 8.4(h) of the Indenture.
                                         --------------

     "Limited Amortization Amount" means (a) for any Distribution Date relating
      ---------------------------
to a Non-Renewal Amortization Period, the Class A Collateral Amount with respect
to all Non-Renewing Ownership Groups, (b) for any Distribution Date relating to
any other Limited Amortization Period, the excess, if any, of (i) the amount
specified in the effective notice delivered by the Seller in accordance with
Section 4.13, over (ii) the aggregate amount of principal distributed to the
------------  ----
Series 2001-VFN Noteholders on all prior Distribution Dates, if any, related to
any Monthly Period in such Limited Amortization Period and (c) for any other
Distribution Date, any amount (which shall be in an amount satisfying the
requirements of the second grammatical paragraph of Section 4.13) selected by
                                                    ------------
the Seller with respect to that Distribution Date with not less than five
Business Days' prior written notification by the Seller to the Administrative
Agent.

     "Limited Amortization Period" means, unless the Controlled Amortization
      ---------------------------
Period or the Rapid Amortization Period shall have occurred prior thereto, a
period beginning on the first day of any Monthly Period (a) specified in the
effective notice delivered by the Seller in accordance with Section 4.13 or (b)
                                                            ------------
following any Purchase Commitment Expiration Date as to which there is any
Non-Renewing Ownership Group, if none of or less than all of the related
Purchase Commitments have been assigned to other Persons pursuant to Section
                                                                     -------
15.4 of the Note Purchase Agreement, and ending upon the first to occur of (i)
----
the commencement of the Controlled Amortization Period or the Rapid Amortization
Period, and (ii) the last day of the Monthly Period related to the Distribution
Date on which the Limited Amortization Amount is reduced to zero.

     "Liquidation Rate" means, for any Monthly Period, the percentage equivalent
      ----------------
of a fraction, the numerator of which is the aggregate amount of Collections of
Receivables during such Monthly Period and the denominator of which is the
aggregate amount of Receivables (other than Receivables in a billing option
plan) outstanding as of the first day of such Monthly Period.

     "Maximum Class A Collateral Amount" is defined in Section 4.14.
      ---------------------------------                ------------

     "Maximum Reallocated Principal Reserves Amount" means, with respect to any
      ---------------------------------------------
Monthly Period, the sum of (a) the aggregate amount of Note Interest payable on
the Distribution Date following such Monthly Period (such amount to be estimated
by the Servicer in good faith after consultation with the Administrative Agent)
and (b) the Monthly Servicing Fee payable on the Distribution Date following
such Monthly Period.

     "MGT" means Morgan Guaranty Trust Company of New York and it successors and
      ---
assigns.

                                       9

<PAGE>

     "Minimum Seller Percentage" means, with respect to Series 2001-VFN, 0.00%.
      -------------------------

     "Monthly Finance Charge Allocation" is defined in Section 4.3(c).
      ---------------------------------                --------------

     "Monthly Period Finance Charge Subaccount Allocation" is defined in Section
      ---------------------------------------------------                -------
4.5.
---

     "Non-Renewal Amortization Period" means a Limited Amortization Period which
      -------------------------------
begins pursuant to clause (b) of the definition thereof.
                   ----------

     "Non-Renewing Allocation Percentage" means, with respect to any date of
      ----------------------------------
determination, during a Non-Renewal Amortization Period, the percentage
equivalent of a fraction, the numerator of which is the portion of the Class A
Collateral Amount represented by the Class A Notes held by the Conduit Managing
Agent for each Non-Renewing Ownership Group as of the close of business on the
last day of the Revolving Period and the denominator of which is the Collateral
Amount as of the close of business on such last day.

     "Non-Renewing Ownership Group" is defined in the Note Purchase Agreement.
      ----------------------------

     "Note Interest" is defined in the Note Purchase Agreement.
      -------------

     "Note Purchase Agreement" means the Note Purchase Agreement dated as of
      -----------------------
October   , 2001 among the Seller, First Consumers National Bank, the Servicer,
        --
Spiegel, MGT, as the Administrative Agent and Conduit Managing Agent and the
Conduit Purchasers, the other Conduit Managing Agents, and the Bank Purchasers
identified therein, as amended and in effect from time to time.

     "Noteholder" means the holder of record of any Note.
      ----------

     "Notes" means the Class A Notes.
      -----

     "Official Body" means any government or political subdivision or any
      -------------
agency, authority, bureau, central bank, commission, department or
instrumentality thereof, or any court, tribunal, grand jury or arbitrator, in
each case whether foreign or domestic.

     "Ownership Group" is defined in the Note Purchase Agreement.
      ---------------

     "Pay Out Commencement Date" means the earliest of the day a Trust Pay Out
      -------------------------
Event is deemed to occur pursuant to Section 5.1 of the Indenture or a Series
                                     -----------
Pay Out Event or Event of Default is deemed to occur pursuant to Section 6.1 or
                                                                 -----------
6.2 of this Indenture Supplement.
---

     "Pay Out Event" means a Trust Pay Out Event, a Series Pay Out Event or an
      -------------
Event of Default.

                                       10

<PAGE>

     "Portfolio Yield" means, with respect to any Monthly Period, the annualized
      ---------------
percentage equivalent of a fraction, the numerator of which is an amount equal
to the Allocation Percentage of Finance Charge Collections for such Monthly
Period, such sum to be calculated on a cash basis after subtracting an amount
equal to the Investor Default Amount and any Investor Uncovered Dilution Amounts
for such Monthly Period, and the denominator of which is the Average Collateral
Amount for such Monthly Period.

     "Principal Collections Subaccount" is defined in the Indenture.
      --------------------------------

     "Principal Shortfall" means, with respect to the Series 2001-VFN Notes, on
      -------------------
any Deposit Date during a Monthly Period:

     (a) if such Monthly Period falls in the Controlled Amortization Period, the
excess of the applicable Controlled Distribution Amount over the Class A
Principal Allocation for such Deposit Date and for each prior Deposit Date
during such Monthly Period;

     (b) if such Monthly Period falls in the Rapid Amortization Period, the
excess of the Class A Collateral Amount over the aggregate amount deposited into
the Principal Collections Subaccount pursuant to Section 4.3(b)(ii)(z) for such
                                                 ---------------------
Deposit Date and for each prior Deposit Date during such Monthly Period;

     (c) if such Monthly Period falls in a Limited Amortization Period, the
excess of the applicable Limited Amortization Amount over the Class A Principal
Allocation for such Deposit Date and for each prior Deposit Date during such
Monthly Period; and

     (d) if such Monthly Period falls in the Revolving Period, the excess of any
applicable Limited Amortization Amount over the aggregate amount deposited into
the Principal Collections Subaccount pursuant to Section 4.3(b)(ii)(x) for such
                                                 ---------------------
Deposit Date and for each prior Deposit Date during such Monthly Period.

     "Purchase Commitment Expiration Date" is defined in the Note Purchase
      -----------------------------------
Agreement.

     "Purchase Commitments" is defined in the Note Purchase Agreement.
      --------------------

     "Rapid Amortization Period" means an Amortization Period commencing on the
      -------------------------
Pay Out Commencement Date and ending on the earlier to occur of (a) the Trust
Termination Date or (b) the Series Termination Date.

     "Rating Agency" means the rating agency or agencies providing ratings for
      -------------
the Notes issued by any Conduit Purchaser.

     "Rating Agency Condition" means, with respect to any action or series of
      -----------------------
related actions or proposed transactions in the Note Purchase Agreement, the

                                       11

<PAGE>

Indenture or this Indenture Supplement, that the Rating Agency or Agencies for
the respective Notes shall have notified the related Conduit Managing Agent that
such action or series of related actions or the consummation of such proposed
transaction or series of related transactions will not result in a reduction or
withdrawal of the rating or ratings of the Class A Notes.

     "Reallocated Principal Collections" is defined in Section 4.10.
      ---------------------------------                ------------

     "Reallocated Principal Reserves" is defined in subsection 4.3(b)(ii)(x).
      ------------------------------                ------------------------

     "Reassignment Amount" means, for any Distribution Date, after giving effect
      -------------------
to any deposits and distributions otherwise to be made on such Distribution
Date, the sum of (i) the outstanding principal balance of the Series 2001-VFN
Notes on such Distribution Date, plus (ii) Note Interest for such Distribution
Date and any Note Interest previously due but not distributed to the Series
2001-VFN Noteholders plus (iii) fees and other amounts owed pursuant to the Note
Purchase Agreement or Fee Letter.

     "Record Date" means, with respect to any Distribution Date, the close of
      -----------
business on the last Business Day of the preceding month.

     "Required Conduit Managing Agents" is defined in the Note Purchase
      --------------------------------
Agreement.

     "Required Excess Collateral Amount" means, as of any date of determination,
      ---------------------------------
an amount that if equal to the Excess Collateral Amount on such date of
determination would cause the Excess Collateral Amount Allocation Percentage to
be equal to the Required Excess Collateral Amount Percentage on such date of
determination.

     "Required Excess Collateral Amount Percentage" means, with respect to any
      --------------------------------------------
date of determination other than during the continuance of a Terms Change
Enhancement Increase Condition, the Base Excess Collateral Amount Percentage,
and during the continuance of a Terms Change Enhancement Increase Condition, the
highest then applicable percentage specified in the definition of Enhancement
Increase Amount with respect to such Terms Change Enhancement Condition.

     "Revolving Period" means the period from and including the Closing Date to
      ----------------
and including the earlier of (a) the close of business on the Scheduled Pay Out
Commencement Date or (b) the Pay Out Commencement Date; provided, however, that
                                                        --------  -------
the Revolving Period will be temporarily suspended for the duration of any
Limited Amortization Period.

     "Scheduled Pay Out Commencement Date" is defined in the Note Purchase
      -----------------------------------
Agreement.

     "Scheduled Series 2001-VFN Termination Date" means the Distribution Date
      ------------------------------------------
which occurs in the Monthly Period occurring 60 months after the earlier to

                                       12

<PAGE>

occur of the commencement of the Controlled Amortization Period or the Rapid
Amortization Period.

     "Series 2001-VFN" means the Series of the Spiegel Credit Card Master Note
      ---------------
Trust represented by the Series 2001-VFN Notes.

     "Series Accounts" means the Finance Charge Subaccount, the Principal
      ---------------
Collections Subaccount, the Excess Spread Account and the Excess Funding Account
with respect to Series 2001-VFN.

     "Series Pay Out Event" is defined in Section 6.1 of this Indenture
      --------------------                -----------
Supplement.

     "Series Servicing Fee Percentage" means (a) at any time when FCNB is
      -------------------------------
Servicer, two percent (2.00%) per annum or such lesser percentage as FCNB may
                              --- -----
from time to time designate by written notice to the Indenture Trustee and the
Administrative Agent (which lesser percentage shall be based on a good faith
determination by FCNB that such percentage will result in payment of a Servicing
Fee with respect to Series 2001-VFN at least adequate to cover FCNB's estimated
costs of servicing the portion of the Receivables allocable to Series 2001-VFN),
and (b) at any other time, two percent (2.00%) per annum.
                                               --- -----

     "Series Termination Date" means the earlier to occur of (a) the day after
      -----------------------
the Distribution Date on which the Series 2001-VFN Notes are paid in full, or
(b) the Scheduled Series 2001-VFN Termination Date.

     "Terms Change Condition" is defined in Section 7.1.
      ----------------------                -----------

     "Terms Change Enhancement Increase Condition" means the condition that,
      -------------------------------------------
after giving effect to any terms change that is restricted by Section 7.1 and
                                                              -----------
with respect to which the Rating Agency Condition has not been satisfied, the
Excess Collateral Amount Allocation Percentage shall equal or exceed the
applicable amount specified in the definition of Enhancement Increase Amount.
Such condition shall be deemed to be continuing until the Rating Agency
Condition has been satisfied subsequent to and taking into consideration the
terms change that gave rise to such condition.

     "Total Deficiency Amount" is defined in Section 4.5.
      -----------------------                -----------

     Section 2.2 Terms. Each capitalized term defined herein shall relate to the
                 -----
Series 2001-VFN Notes and no other Series of Notes issued by the Trust, unless
the context otherwise requires. All capitalized terms used herein and not
otherwise defined herein have the meanings ascribed to them in the Indenture or
the Transfer and Servicing Agreement. In the event that any term or provision
contained herein shall conflict with or be inconsistent with any term or
provision contained in the Indenture or the Transfer and Servicing Agreement,
the terms and provisions of this Indenture Supplement shall govern.

                                       13

<PAGE>

     Section 2.3 Interpretive Rules. The interpretive rules specified in Section
                 ------------------                                      -------
1.2 of the Indenture also apply to this Indenture Supplement.
---

     Section 2.4 Calculations. The Series 2001-VFN Notes are replacing and
                 ------------
refinancing the Series 1999-B Certificates issued by the SMT Trust that had
substantially similar economic terms. For any Monthly Period commencing prior to
the Closing Date and the portion of the October 2001 Monthly Period falling
prior to the Closing Date, "Base Rate", "Delinquency Amount", "Dilution",
"Excess Spread Percentage" and any other related calculations shall be
calculated in accordance with the Series 1999-B transaction documents for
purposes of this document, and for purposes of calculations required by this
Indenture Supplement, the "Collateral Amount" and "Allocation Percentage" on
each day falling in the October 2001 Monthly Period and prior to the Closing
Date shall be deemed to have equaled the "Investor Amount" and the "Investor
Percentage," respectively, under the Series Supplement for that Series on that
day.

                                  ARTICLE III

                Optional Redemption of Notes; Final Distributions

     Section 3.1 Optional Redemption. On any day occurring after the end of the
                 -------------------
Revolving Period and on or after the date on which the outstanding principal
balance of the Series 2001-VFN Notes is reduced to 10% or less of the highest
outstanding principal balance of Series 2001-VFN Notes since the Closing Date,
the Servicer shall have the option to redeem the Series 2001-VFN Notes, at a
purchase price equal to (i) if such day is a Distribution Date, the Reassignment
Amount for such Distribution Date or (ii) if such day is not a Distribution
Date, the Reassignment Amount for the Distribution Date following such day.

     (a) The Servicer shall give the Indenture Trustee at least thirty (30) days
prior written notice of the date on which the Servicer intends to exercise such
optional redemption. Not later than 12:00 noon, New York City time, on such day
the Servicer shall deposit the Reassignment Amount into the Collection Account
in immediately available funds. Such redemption option is subject to payment in
full of the Reassignment Amount. Following such deposit into the Collection
Account in accordance with the foregoing, the Collateral Amount for Series
2001-VFN shall be reduced to zero and the Series 2001-VFN Noteholders shall have
no further security interest in the Receivables. The Reassignment Amount shall
be distributed as set forth in Section 3.1(c).
                               --------------

     (b) (i) The amount to be paid by the Seller with respect to Series 2001-VFN
in connection with a reassignment of Receivables to the Seller pursuant to
Section 2.4(e) of the Transfer and Servicing Agreement shall equal the
--------------
Reassignment Amount for the first Distribution Date following the Monthly Period
in which the reassignment obligation arises under the Transfer and Servicing
Agreement.

                                       14

<PAGE>

               (ii) The amount to be paid by the Seller with respect to Series
          2001-VFN in connection with a repurchase of the Notes pursuant to
          Section 7.1 of the Transfer and Servicing Agreement shall equal the
          -----------
          Reassignment Amount for the Distribution Date of such repurchase.

     (c) With respect to the Reassignment Amount deposited into the Collection
Account, the Indenture Trustee shall, in accordance with the written direction
of the Servicer, not later than 12:00 noon, New York City time, on the related
Distribution Date, make distributions of the following amounts (in the priority
set forth below and, in each case, after giving effect to any deposits and
distributions otherwise to be made on such date) in immediately available funds:
(x) the Note Principal Balance on such Distribution Date will be distributed to
the Paying Agent for payment to the Class A Noteholders and (y) an amount equal
to the sum of (A) Monthly Interest for such Distribution Date, and (B) any
Monthly Interest previously due but not distributed to the Class A Noteholders
on a prior Distribution Date and (C) any fees or amounts due and owing under the
Note Purchase Agreement or Fee Letter will be distributed to the parties to
which each such item is owed.

     (d) Notwithstanding anything to the contrary in this Indenture Supplement,
the Indenture or the Transfer and Servicing Agreement, all amounts distributed
to the Paying Agent pursuant to this Section 3.1 for payment to the Series
                                     -----------
2001-VFN Noteholders shall be deemed distributed in full to the Series 2001-VFN
Noteholders on the date on which such funds are distributed to the Paying Agent
pursuant to this Section 3.1 and shall be deemed to be a final distribution
                 -----------
pursuant to Section 11.2 of the Indenture.
            ------------

     (e) On the Series 2001-VFN Final Maturity Date, the right of the Series
2001-VFN Noteholders to receive payments from the Issuer will be limited solely
to the right to receive payments pursuant to Section 5.5 of the Indenture.
                                             -----------

     Section 3.2 Delivery and Payment for the Series 2001-VFN Notes. The
                 --------------------------------------------------
Indenture Trustee shall deliver the initial Series 2001-VFN Notes on the Closing
Date when authenticated in accordance with Section 2.3 of the Indenture. In
                                           -----------
addition, from time to time, within five Business Days of receipt of written
instructions from the Seller, the Indenture Trustee shall authenticate and
deliver additional Series 2001-VFN Notes to the Conduit Managing Agent for any
additional Ownership Group.

     Section 3.3 Private Placement of Class A Notes; Form of Delivery of Series
                 --------------------------------------------------------------
2001-VFN Notes.
--------------

     (a) The Class A Notes have not been registered under the Securities Act of
1933, as amended, (the "Securities Act"), or any state securities law. No
                        --------------
transfer of any Class A Note shall be made except in accordance with the terms
of the Note Purchase Agreement and either (i) pursuant to an effective
registration under the Securities Act and applicable state securities or "blue
                                                                          ----
sky" laws or (ii)
---

                                       15

<PAGE>

in a transaction exempt from the registration requirements of the Securities Act
and applicable state securities or "blue sky" laws, to (A) a person who the
transferor reasonably believes is a Qualified Institutional Buyer within the
meaning thereof in Rule 144A under the Securities Act that is aware that the
resale or other transfer is being made in reliance on Rule 144A, (2) a person
who is an accredited investor as defined in Rule 501(a) under the Securities Act
or (3) an institution which has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of the
investment therein. The Class A Notes shall bear a legend to the effect set
forth in Exhibit A. None of the Seller, the Transfer Agent and Registrar or the
         ---------
Indenture Trustee is obligated to register the Class A Notes under the
Securities Act or any other securities or "blue sky" law or to take any other
action not otherwise required under this Indenture Supplement or the Indenture
to permit the transfer of Class A Notes without registration or as described
above.

     (b) The Series 2001-VFN Notes shall not be delivered as Book-Entry Notes.
The Series 2001-VFN Notes shall be delivered as Registered Notes as provided in
Section 6.1 of the Indenture. The Class A Notes shall be substantially in the
-----------
form of Exhibit A.
        ---------

                                   ARTICLE IV

                            RIGHTS OF NOTEHOLDERS AND
                    ALLOCATION AND APPLICATION OF COLLECTIONS

     Section 4.1 [Reserved]
                  -------

     Section 4.2 [Reserved].
                  --------

     Section 4.3 Allocations.
                 -----------

     (a) Allocations. Finance Charge Collections, Principal Collections and
         -----------
Defaulted Receivables allocated to Series 2001-VFN pursuant to Article VIII of
                                                               ------------
the Indenture shall be allocated and distributed as set forth in this Article.

     (b) Allocations to the Series 2001-VFN Noteholders. The Servicer shall,
         ----------------------------------------------
prior to the close of business on any Deposit Date, allocate to the Series
2001-VFN Noteholders the following amounts as set forth below:

          (i) Allocation of Finance Charge Collections. The Servicer shall
              ----------------------------------------
     allocate to the Series 2001-VFN Noteholders and transfer to the Finance
     Charge Subaccount for application as provided herein an amount equal to the
     product of (A) the Allocation Percentage on the Deposit Date of such
     Collections and (B) the aggregate amount of Finance Charge Collections for
     such Deposit Date; provided, however, that with respect to each Monthly
                        --------  -------
     Period falling in the Revolving Period or the Controlled Amortization
     Period, such amount shall be deposited in the Collection Account and
     allocated to the Finance Charge Subaccount only until such

                                       16

<PAGE>

     time as the amount retained in the Collection Account and allocated to the
     Finance Charge Subaccount pursuant to this Section equals the sum of (1)
     the aggregate amount of Note Interest with respect to the Distribution Date
     in the immediately succeeding Monthly Period (such amount to be estimated
     by the Servicer in good faith after consultation with the Administrative
     Agent), (2) at any time that FCNB is not the Servicer, the Investor Monthly
     Servicing Fee payable on the Transfer Date in the immediately succeeding
     Monthly Period and all accrued and unpaid Investor Monthly Servicing Fees
     with respect to prior Monthly Periods and (3) the Default Estimate and any
     Investor Uncovered Dilution Amounts for that Monthly Period; provided
                                                                  --------
     further, however, that notwithstanding the foregoing proviso, (1) the
     -------  -------                                     -------
     entire Allocation Percentage of Finance Charge Collections shall be
     deposited in the Collection Account and allocated to the Finance Charge
     Subaccount on a daily basis if the Excess Spread Percentage for the
     preceding Monthly Period is less than 3.00% and (2) subject to Section
                                                                    -------
     8.4(a) of the Indenture, on each Determination Date, the Servicer shall
     ------
     deposit in the Finance Charge Subaccount any amounts not retained on a
     daily basis pursuant to the preceding proviso. Any portion of such
                                           -------
     allocation not required to be transferred to the Finance Charge Subaccount
     pursuant to the preceding sentence shall be (x) first, deposited in the
     Excess Funding Account to the extent that the Seller Amount is less than
     the Minimum Seller Amount and (y) thereafter paid to the holders of the
     Seller Interest.

          (ii) Allocations of Principal Collections. The Servicer shall allocate
               ------------------------------------
     to the Series 2001-VFN Noteholders the following amounts as set forth
     below:

               (x) Allocations During the Revolving Period. During the Revolving
                   ---------------------------------------
          Period an amount equal to the product of the Allocation Percentage and
          the aggregate amount of Principal Collections deposited in the
          Collection Account on such Deposit Date, shall be allocated to the
          Series 2001-VFN Noteholders and transferred to the Principal
          Collections Subaccount for application as Reallocated Principal
          Collections on the related Distribution Date pursuant to Section
                                                                   -------
          4.10(a) (all such amounts retained in the Collection Account for
          -------
          application as Reallocated Principal Collections pursuant to this
          subsection 4.3(b)(ii)(x) being hereinafter referred to as "Reallocated
          ------------------------                                   -----------
          Principal Reserves"); provided, however, that if the sum of (i) such
          ------------------    --------  -------
          Reallocated Principal Reserves for any Deposit Date, (ii) all
          Reallocated Principal Reserves previously deposited in the Principal
          Collections Subaccount pursuant to this subsection 4.3(b)(ii)(x) on
                                                  ------------------------
          Deposit Dates occurring during the same Monthly Period and (iii) the
          aggregate amount of Finance Charge Collections deposited in the
          Finance Charge Subaccount pursuant to subsection 4.3(b)(i) on Deposit
                                                --------------------
          Dates occurring in the same Monthly Period, exceeds the

                                       17

<PAGE>

          Maximum Reallocated Principal Reserves Amount for such Monthly Period,
          then such excess shall not be treated as Reallocated Principal
          Reserves and shall be (A) first, if any other Principal Sharing Series
          is outstanding and in its amortization period or accumulation period,
          retained in the Collection Account for application, to the extent
          necessary, as Shared Principal Collections to other Principal Sharing
          Series on the related Distribution Date, (B) second deposited in the
          Excess Funding Account to the extent necessary so that the Seller
          Amount is not less than the Minimum Seller Amount, and (C) third paid
          to the holders of the Seller Interest.

               (y) Allocations During the Controlled Amortization Period and any
                   -------------------------------------------------------------
          Limited Amortization Period. During the Controlled Amortization Period
          ---------------------------
          and any Limited Amortization Period an amount equal to the product of
          (I) the Allocation Percentage and (II) the aggregate amount of
          Principal Collections deposited in the Collection Account on such
          Deposit Date (the product for any such date is hereinafter referred to
          as a "Percentage Allocation") shall be allocated to the Series
                ----------------------
          2001-VFN Noteholders and transferred to the Principal Collections
          Subaccount; provided, however, that if the sum of such Percentage
                      --------  -------
          Allocation and all preceding Percentage Allocations with respect to
          the same Monthly Period exceeds (1) the Controlled Distribution Amount
          during the Controlled Amortization Period or (2) the Limited
          Amortization Amount during a Limited Amortization Period, in each case
          for the related Distribution Date, then such excess shall not be
          treated as a Percentage Allocation and shall be (A) first, if any
          other Principal Sharing Series is outstanding and in its amortization
          period or accumulation period, transferred to the Principal
          Collections Subaccount for application, to the extent necessary, as
          Shared Principal Collections to other Principal Sharing Series on the
          related Distribution Date, (B) second deposited in the Excess Funding
          Account to the extent necessary so that the Seller Amount is not less
          than the Minimum Seller Amount, and (C) third paid to the holders of
          the Seller Interest.

               (z) Allocations During the Rapid Amortization Period. During the
                   ------------------------------------------------
          Rapid Amortization Period, an amount equal to the product of (I) the
          Allocation Percentage and (II) the aggregate amount of Principal
          Collections deposited in the Collection Account on such Deposit Date
          shall be allocated to the Series 2001-VFN Noteholders and transferred
          to the Principal Collections Subaccount; provided, however, that after
                                                   --------  -------
          the date on which an amount of such Collections equal to the Note
          Principal Balance has been deposited into the Collection Account and
          allocated to the Series 2001-VFN Noteholders, such amount shall be (A)
          first, if

                                       18

<PAGE>

          any other Principal Sharing Series is outstanding and in its
          amortization period or accumulation period, transferred to the
          Principal Collections Subaccount for application, to the extent
          necessary, as Shared Principal Collections to other Principal Sharing
          Series on the related Distribution Date, (B) second deposited in the
          Excess Funding Account to the extent necessary so that the Seller
          Amount is not less than the Minimum Seller Amount, and (C) third paid
          to the Holders of the Seller Interest.

     (c) Monthly Allocations During the Revolving Period, Limited Amortization
         ---------------------------------------------------------------------
Period and Controlled Amortization Period. Prior to the commencement of the
-----------------------------------------
Rapid Amortization Period, on each Determination Date with respect to a Monthly
Period, the Servicer shall deposit in the Collection Account and allocate to the
Finance Charge Subaccount an amount equal to the excess, if any, of the
aggregate amount of Collections that would have been deposited in the Collection
Account and allocated to the Finance Charge Subaccount pursuant to Section
                                                                   -------
4.3(b)(i) but for the proviso thereto, over the aggregate amount of Collections
---------             -------          ----
that were deposited in the Collection Account and allocated to the Finance
Charge Subaccount pursuant to Section 4.3(b)(i) during such Monthly Period (the
                              -----------------
"Monthly Finance Charge Allocation"); provided, however, that so long as FCNB is
 ----------------------------------   --------  -------
the Servicer and is affiliated with the holders of the Seller Interest, FCNB, as
Servicer, and as agent for the holder of the Seller Interest, may make a net
deposit to the Collection Account on each Determination Date in an amount equal
to the Monthly Finance Charge Allocation, minus all amounts payable or
distributable to FCNB, as Servicer, or the holders of the Seller Interest
pursuant to Section 4.5 on the related Transfer Date.
            -----------

     Section 4.4 Investor Charge-offs. On each Determination Date, the Servicer
                 --------------------
shall calculate the Investor Default Amount for the preceding Monthly Period and
the Total Deficiency Amount for the related Distribution Date. If on such date
the Total Deficiency Amount exceeds zero (such deficiency, the "Shortfall"), the
                                                                ---------
Excess Collateral Amount (after being reduced by any Excess Collateral Amount
Reallocated Amounts) will be reduced by the lesser of (a) the Investor Default
Amount plus any Investor Uncovered Dilution Amount for the preceding Monthly
Period and (b) such Shortfall (a "Excess Collateral Amount Investor Charge
                                  ----------------------------------------
Off"). In the event that such reduction would cause the Excess Collateral Amount
----
to be a negative number, the Excess Collateral Amount shall be reduced to zero,
and the Class A Collateral Amount will be reduced by an amount equal to the
excess of such reduction over the Excess Collateral Amount prior to such
reduction (a "Class A Investor Charge Off").
              ----------------------------

     Section 4.5 Monthly Payments. On each Determination Date, the Servicer,
                 ----------------
pursuant to a Monthly Payment Instructions and Notification substantially in the
form of Exhibit B to this Indenture Supplement, shall instruct the Indenture
        ---------
Trustee in writing to withdraw, and on the succeeding Transfer Date the
Indenture Trustee acting in accordance with such written instructions shall

                                       19

<PAGE>

withdraw, the amounts required to be withdrawn from the Finance Charge
Subaccount pursuant to Sections 4.5(a), (b), (c), (d), (e), and (f) and the
                       ---------------  ---  ---  ---  ---      ---
amounts required to be withdrawn from the Principal Collection Subaccount
pursuant to Section 4.10; provided that the Servicer may amend the form of
            ------------  --------
Exhibit B from time to time, with the prior written consent of the Indenture
---------
Trustee. On each Determination Date, the Servicer shall also determine the
amount (the "Total Deficiency Amount"), if any, by which the sum of (a) Note
             ------------------------
Interest for the following Distribution Date, plus (b) the Investor Monthly
Servicing Fee accrued in respect of the preceding Monthly Period and any unpaid
Monthly Servicing Fees from prior Monthly Periods, plus (c) the Investor Default
Amount and any Investor Uncovered Dilution Amounts for the preceding Monthly
Period, exceeds the aggregate of (i) amounts allocated to the Finance Charge
Subaccount in respect of the preceding Monthly Period, (ii) any amounts
deposited or to be deposited in the Finance Charge Subaccount for the preceding
Monthly Period, with respect to the portion of Ineligible Receivables
constituting Finance Charge Receivables reassigned pursuant to Section 2.4(d) of
                                                               --------------
the Indenture, (iii) any amounts deposited or to be deposited in the Finance
Charge Subaccount for the preceding Monthly Period, with respect to Investor Net
Recoveries, and (iv) any amounts allocable to the Series 2001-VFN Notes in
respect of Shared Finance Charge Collections in respect of the preceding Monthly
Period (such sum, the "Monthly Period Finance Charge Subaccount Allocation").
                       ----------------------------------------------------

     (a) Note Interest. On each Transfer Date, the Indenture Trustee, acting in
         -------------
accordance with written instructions from the Servicer, shall withdraw from the
Finance Charge Subaccount an amount equal to the Monthly Period Finance Charge
Subaccount Allocation, to the extent necessary to pay the Note Interest for the
related Distribution Date.

     (b) Servicing Fee. On each Transfer Date, the Indenture Trustee, acting in
         -------------
accordance with written instructions from the Servicer, shall withdraw from the
Finance Charge Subaccount an amount equal to the lesser of (i) the Monthly
Period Finance Charge Subaccount Allocation less any amounts withdrawn from the
Finance Charge Subaccount pursuant to Section 4.5(a) and (ii) the Investor
                                      --------------
Monthly Servicing Fee accrued in respect of the preceding Monthly Period plus
all accrued and unpaid Investor Monthly Servicing Fees in respect of previous
Monthly Periods, and the Indenture Trustee shall in accordance with such written
instructions pay such amount to the Servicer.

     (c) Defaults and Uncovered Dilution. On each Transfer Date, the Indenture
         -------------------------------
Trustee, acting in accordance with written instructions from the Servicer, shall
withdraw from the Finance Charge Subaccount an amount equal to the lesser of (i)
the Monthly Period Finance Charge Subaccount Allocation less any amounts
withdrawn from the Finance Charge Subaccount pursuant to Sections 4.5(a) and (b)
                                                         ---------------     ---
and (ii) the Investor Default Amount and any Investor Uncovered Dilution Amount
for the preceding Monthly Period, and the Indenture Trustee shall in accordance
with such written instructions (A) during the Revolving Period, apply such
amount in accordance with Section 4.3(b)(ii)(x),
                          ---------------------

                                       20

<PAGE>

(B) during the Controlled Amortization Period or any Limited Amortization
Period, deposit such amount in accordance with Section 4.3(b)(ii)(y) and (C)
                                               ---------------------
during the Rapid Amortization Period, deposit such amount in accordance with
Section 4.3(b)(ii)(z) in each case as if such amounts were Collections of
---------------------
Principal Receivables allocable to the Series 2001-VFN Notes received during the
Monthly Period related to such Transfer Date.

     (d) Reimbursement of Investor Charge Offs and Excess Collateral Amount
         ------------------------------------------------------------------
Reallocated Amounts. On each Transfer Date, the Indenture Trustee, acting in
-------------------
accordance with written instructions of the Servicer, shall withdraw from the
Finance Charge Subaccount an amount equal to the lesser of (i) the Monthly
Period Finance Charge Subaccount Allocation less any amounts withdrawn from the
Finance Charge Subaccount pursuant to Sections 4.5(a), (b) and (c) and (ii) an
                                      ---------------- ---     ---
amount equal to the aggregate amount of Investor Charge Offs, if any, Excess
Collateral Amount Reallocated Amounts which have not theretofore been reimbursed
pursuant to this Section 4.5(d), if any, and shall in accordance with such
                 --------------
written instructions (A) during the Revolving Period, apply such amount in
accordance with Section 4.3(b)(ii)(x), (B) during the Controlled Amortization
                ---------------------
Period or any Limited Amortization Period, deposit such amounts in accordance
with Section 4.3(b)(ii)(y) and (C) during the Rapid Amortization Period, deposit
     ---------------------
such amounts in accordance with Section 4.3(b)(ii)(z) in each case, as if such
                                ---------------------
amounts were Collections of Principal Receivables allocable to the Series
2001-VFN Notes received during the Monthly Period related to such Transfer Date.
On the date of any such reimbursement, the Collateral Amount shall be increased
by the amount of such reimbursement of Investor Charge Offs and Excess
Collateral Amount Reallocated Amounts.

     Reimbursements pursuant to this Section 4.5(d) shall be applied first to
                                     --------------                  -----
reimburse the Class A Notes for Class A Investor Charge Offs, second, to the
                                                              ------
extent amounts are available following the reimbursement of the Class A Notes,
to reimburse the Excess Collateral Amount for Excess Collateral Amount
Reallocated Amounts and third, to the extent amounts are available following the
                        -----
reimbursement of the Excess Collateral Amount for Excess Collateral Amount
Reallocated Amounts, to reimburse the Excess Collateral Amount for Excess
Collateral Amount Investor Charge Offs.

     (e) Funding Costs. On each Transfer Date, the Indenture Trustee, acting in
         -------------
accordance with written instructions from the Servicer, shall withdraw from the
Finance Charge Subaccount an amount equal to the lesser of (i) the Monthly
Period Finance Charge Subaccount Allocation, and (ii) the aggregate amount of
Funding Costs owed to any Class A Noteholder and deposit the same into the
Collection Account.

     (f) Excess Spread. On each Transfer Date, the Indenture Trustee, acting in
         -------------
accordance with written instructions from the Servicer, shall withdraw from the
Finance Charge Subaccount and deposit to the Collection Account an amount equal
to excess, if any, of (i) the Monthly Period Finance Charge

                                       21

<PAGE>

Subaccount Allocation, over (ii) all amounts withdrawn from the Finance Charge
                       ----
Subaccount pursuant to Sections 4.5(a), (b), (c), (d) and (e) (such excess, the
                       ---------------  ---  ---  ---     ---
"Excess Spread").
 --------------

     Section 4.6 Payment of Note Interest. On each Distribution Date, the Paying
                 ------------------------
Agent shall pay in accordance with Section 5.1: (a) to each Conduit Managing
                                   -----------
Agent from amounts available for that purpose pursuant to Section 4.5(a) in
                                                          --------------
respect of the Class A Notes on the related Transfer Date an amount equal to the
Class Note Interest for the related Ownership Group for the Accrual Period
ending on that Distribution Date; and (b) to the Excess Collateral Amount
Holders from amounts available for that purpose pursuant to Section 4.5(f) on
                                                            --------------
the related Transfer Date. If the amount of funds available for that purpose
pursuant to Section 4.5(a) is less than the Note Interest for the Accrual Period
            --------------
ending on that Distribution Date, then the distribution pursuant to clause (a)
                                                                    ----------
above shall be made to the Conduit Managing Agents pro rata based upon the Class
Note Interest for their respective Ownership Groups.

     Section 4.7 Payment of Note Principal.
                 -------------------------

     (a) (i) On any Determination Date with respect to the Revolving Period
following five (5) Business Days' prior written notification by the Seller to
the Administrative Agent, and (ii) on the Determination Date in the calendar
month following the Monthly Period in which an Amortization Period commences and
on each Determination Date thereafter until the end of such Amortization Period,
the Servicer shall instruct the Indenture Trustee in writing to withdraw, and on
the next succeeding Transfer Date the Indenture Trustee shall, subject to the
following paragraph, withdraw, from the Principal Collections Subaccount (A) the
amount deposited in the Principal Collection Subaccount pursuant to Section
                                                                    -------
4.3(b)(ii)(x) (or such lesser amount as may be specified in the notification
-------------
referred to above), 4.3(b)(ii)(y) or 4.3(b)(ii)(z) during the preceding Monthly
                    -------------    -------------
Period, (B) any Shared Principal Collections from other Series allocated to the
Series 2001-VFN Notes including funds in the Excess Funding Account that are
treated as Shared Principal Collections pursuant to Section 8.5 of the
                                                    -----------
Indenture, and (C) the amount to be deposited in the Principal Collection
Subaccount on such Transfer Date pursuant to Section 4.5(c) or 4.5(d) in each
                                             --------------    ------
case after giving effect to any reallocation of Collections pursuant to Section
                                                                        -------
4.10.
----

     On the Determination Date preceding the final Transfer Date, the Servicer
shall determine the amounts to be deposited pursuant to this sentence and on the
final Transfer Date: (x) the Servicer shall, or shall instruct the Indenture
Trustee in writing to, and the Indenture Trustee shall, withdraw from the
Principal Collection Subaccount an amount which is no greater than the
Collateral Amount as of the end of the day on the preceding Record Date; and (y)
the Servicer shall, or shall instruct the Indenture Trustee in writing to, and
the Indenture Trustee shall, withdraw from the Principal Collection Subaccount
for allocation as Collections of Principal Receivables pursuant to Article IV,
                                                                   ----------
the amount, if any,

                                       22

<PAGE>

remaining in the Principal Collection Subaccount after giving effect to the
withdrawals made pursuant to clause (x).
                             ----------

     (b) On each Distribution Date occurring after a deposit is made pursuant to
Section 4.7(a) of this Indenture Supplement, the Paying Agent shall pay in
--------------
accordance with Section 5.1 of the Indenture, (A) to the Conduit Managing Agents
                -----------
(pro rata based upon the portions of the Class A Collateral Amount held by their
respective Ownership Groups) from the Collection Account the lesser of (1) the
amount available for this purpose pursuant to Section 4.7(a) of this Indenture
                                              --------------
Supplement on the related Transfer Date and (2) the Class A Collateral Amount on
such date (provided that during any Non-Renewal Amortization Period, the amount
           --------
so withdrawn shall be paid only to the Conduit Managing Agents for Non-Renewing
Ownership Groups (pro rata based upon the portions of the Class A Collateral
Amount held by their respective Ownership Groups) and shall be limited to the
aggregate portion of the Class A Collateral Amount held by their respective
Ownership Groups), and (B) to the Excess Collateral Amount Holders from the
Collection Account the lesser of (1) the amount available for this purpose
pursuant to Section 4.7(a) of this Indenture Supplement on the related Transfer
            --------------
Date less any amounts withdrawn from the Collection Account pursuant to clause
                                                                        ------
(A) of this Section 4.7(b)(i) and (2) the Excess Collateral Amount on such date.
---         -----------------

     (c) On each Determination Date in respect of any Monthly Period in respect
of which amounts have been deposited in the Principal Collections Subaccount
pursuant to Section 4.8(b), the Servicer shall instruct the Indenture Trustee in
            --------------
writing to withdraw, and on the next succeeding Transfer Date the Indenture
Trustee shall withdraw, from the Principal Collections Subaccount the amount
deposited in the Principal Collection Subaccount pursuant to Section 4.8(b)
                                                             --------------
during the preceding Monthly Period. On each Distribution Date occurring after a
deposit is made pursuant to this Section 4.7(c), the Paying Agent shall pay in
                                 --------------
accordance with Section 5.1 of the Indenture, to the Excess Collateral Amount
                -----------
Holders from the Collection Account the amount deposited into the Collection
Account pursuant to this Section 4.7(c) on the related Transfer Date.
                         --------------

     Section 4.8 Increase and Decrease of the Excess Collateral Amount.
                 -----------------------------------------------------

     (a) Whenever an Enhancement Increase Condition exists and the Excess
Collateral Amount Allocation Percentage is less than the Required Excess
Collateral Amount Percentage, the Seller shall increase the Excess Collateral
Amount by the applicable Enhancement Increase Amount. Such increase shall be
effected by reducing the Seller Amount, if any, by the lesser of such
Enhancement Increase Amount and the amount, if any, by which the Seller Amount
exceeds the Minimum Seller Amount immediately prior to such increase and by
reallocating such amount to the Excess Collateral Amount. If, after giving
effect to the preceding sentence, the Excess Collateral Amount Allocation
Percentage is less than the Required Excess Collateral Amount Percentage, the
Seller shall immediately make a deposit in the Excess Funding Account in
immediately

                                       23

<PAGE>

available funds in the amount necessary to cure such deficiency. Concurrently
with the decrease in the Seller Amount and any required deposit to the Excess
Funding Account, the Excess Collateral Amount shall be increased by the
aggregate amount of such decrease and of such deposit. If the Seller makes a
deposit to the Excess Funding Account as described above, and the balance on
deposit in the Excess Funding Account as a result of such deposit exceeds 20% of
the Portfolio Sub-Limit and is not reduced below that level for a period of 60
consecutive days, then the Seller shall give notice commencing a Limited
Amortization Period with a Limited Amortization Amount of not less than the
balance on deposit on the Excess Funding Account at the time such notice is
given.

     (b) Unless the Pay-Out Commencement Date shall have occurred, on any
Distribution Date when the Excess Collateral Amount Allocation Percentage
exceeds the Required Excess Collateral Amount Percentage (giving effect to any
permitted reduction thereof) (including when a Terms Change Enhancement Increase
Condition is no longer continuing), the Servicer shall allocate to the Excess
Collateral Amount Holders from the Principal Collections Subaccount an amount
equal to the lesser of (i) the excess of the amount of Collections of Principal
Receivables allocated to the Principal Collections Subaccount pursuant to
Section 4.3(b)(ii) over the amount of Excess Collateral Amount Reallocated
------------------
Amounts with respect to such Distribution Date and (ii) the amount that when
subtracted from the Excess Collateral Amount (after giving effect to amounts
previously allocated from the Principal Collections Subaccount pursuant to this
Section 4.8(b)) will cause the Excess Collateral Amount Allocation Percentage to
--------------
equal the Required Excess Collateral Amount Percentage (taking into account any
other Enhancement Increase Condition that is still continuing); provided,
                                                                --------
however, that in no event shall the Excess Collateral Amount be reduced below 3
-------
percent of the result of (x) the Portfolio Sub-limit (as defined in the Note
Purchase Agreement), divided by (y) one minus the Required Excess Collateral
Amount Percentage.

     Section 4.9 Seller's or Servicer's Failure to Make a Deposit or Payment. If
                 -----------------------------------------------------------
the Servicer or Seller fails to make, or give instructions to make, any payment
or deposit (other than as required by Section 2.4(d), 2.4(e), 8.4, 9.2 or 12.2
                                      --------------  ------  ---  ---    ----
of the Indenture) required to be made or given by the Servicer or Seller,
respectively, at the time specified in the Indenture (including applicable grace
periods), the Indenture Trustee shall make such payment or deposit from the
applicable Series Account or from amounts otherwise owing to the Seller or the
Servicer pursuant hereto without instruction from the Servicer or Seller. The
Indenture Trustee shall be required to make any such payment, deposit or
withdrawal hereunder only to the extent that the Indenture Trustee has
sufficient information to allow it to determine the amount thereof. The Servicer
shall, upon request of the Indenture Trustee, promptly provide the Indenture
Trustee with all information necessary to allow the Indenture Trustee to make
such payment, deposit or withdrawal. Such funds or the proceeds of such
withdrawal shall be applied by

                                       24

<PAGE>

the Indenture Trustee in the manner in which such payment or deposit should have
been made by Seller or the Servicer, as the case may be.

     Section 4.10 Reallocated Principal Collections. (a) The Servicer shall
                  ---------------------------------
apply or shall direct the Indenture Trustee in writing to apply on each
Distribution Date the Collections in respect of the preceding Monthly Period
allocated pursuant to Section 4.3(b)(ii)(x), 4.3(b)(ii)(y) or 4.3(b)(ii)(z)
                      ---------------------  -------------    -------------
equal to the lesser of (a) the Excess Collateral Amount Percentage of such
amounts allocated pursuant to Section 4.3(b)(ii)(x), 4.3(b)(ii)(y) or Section
                              ---------------------  -------------
4.3(b)(ii)(z) and (b) the Total Deficiency Amount for such Distribution Date
-------------     ---
(such amounts applied, the "Excess Collateral Amount Reallocated Amounts") to
                            --------------------------------------------
pay the amounts specified in Sections 4.5(a), (b) and (c) in the order of
                             ---------------  ---     ---
priority specified in Section 4.5. On each Distribution Date with respect to the
                      -----------
Revolving Period, the Limited Amortization Period or the Controlled Amortization
Period, the Servicer shall (or shall direct the Indenture Trustee in writing to)
withdraw from the Principal Collections Subaccount and pay to the holder of the
Seller Interest an amount equal to the excess of (i) the Collections in respect
of the preceding Monthly Period allocated pursuant to Section 4.3(b)(ii) over
                                                      ------------------
(ii) the sum of (A) the amount of Excess Collateral Amount Reallocated Amounts
and (B) the amount allocated to the Excess Collateral Amount Holders pursuant to
Section 4.8(b).
--------------

     (b) On any Deposit Date on which the sum of (i) all Reallocated Principal
Reserves previously deposited in the Principal Collections Subaccount pursuant
to subsection 4.3(b)(ii)(x) on Deposit Dates occurring in the same Monthly
   ------------------------
Period, plus (ii) the aggregate amount of Finance Charge Collections deposited
in the Finance Charge Subaccount pursuant to subsection 4.3(b)(i) on Deposit
                                             --------------------
Dates occurring in the same Monthly Period, exceeds the Maximum Reallocated
Principal Reserves Amount, then the Servicer shall allocate, or cause the
Indenture Trustee to allocate, Reallocated Principal Reserves in the amount of
such excess, first, if any other Principal Sharing Series is outstanding and in
its accumulation period to amortization period, to be retained in the Collection
Account for application, to the extent necessary, as Shared Principal
Collections to other Principal Sharing Series on the related Distribution Date,
second to be deposited in the Excess Funding Account to the extent necessary so
that the Seller Amount is not less than the Minimum Seller Amount and third to
be paid to the holders of the Seller Interest.

     Section 4.11 Class A Increases. Subject to the satisfaction of the Class A
                  -----------------
Increase Conditions, and subject to the terms and conditions of the Indenture,
this Indenture Supplement and the Note Purchase Agreement, the Seller may,
during the Revolving Period, request an increase in the outstanding principal
balance of the Class A Notes to an amount not to exceed the Maximum Class A
Collateral Amount (any such increase being referred to herein as a "Class A
                                                                    -------
Increase" and the amount of such increase as the "Class A Increase Amount") in
--------                                          -----------------------
the manner specified in the Note Purchase Agreement.

                                       25

<PAGE>

     Section 4.12 Notice of Note Rate. On or prior to each Determination Date
                  -------------------
and each Transfer Date, each Conduit Managing Agent shall during the Revolving
Period provide the Servicer with certain information relating to the Class Note
Interest (as defined in the Note Purchase Agreement) pursuant to Section 2.6 of
                                                                 -----------
the Note Purchase Agreement.

     Section 4.13 Suspension of the Revolving Period. The Seller may from time
                  ----------------------------------
to time at its sole discretion and without the consent of any Series 2001-VFN
Noteholder or any other Person, unless a Trust Pay Out Event or a Series Pay Out
Event shall have occurred prior thereto, suspend the Revolving Period and cause
a Limited Amortization Period to commence for one or more Monthly Periods by
delivering to the Servicer, the Indenture Trustee and the Administrative Agent,
a written notice at least five days prior to the first day of the Monthly Period
in which such Limited Amortization Period is scheduled to commence, which notice
shall specify the Limited Amortization Amount for such Limited Amortization
Period and the number of Monthly Periods in such Limited Amortization Period;
provided, however, that any Limited Amortization Amount shall be in an amount of
--------  -------
not less than $1,000,000 per Conduit Purchaser; provided further that the Seller
                                                -------- -------
may not cause a Limited Amortization Period to commence unless, in the
reasonable belief of the Seller, such Limited Amortization Period would not
result in the occurrence of a Trust Pay Out Event or a Series Pay Out Event.

     During the Revolving Period, the Seller may also, subject to providing the
prior written notification referred to in clause (x) of Section 4.7(a), from
                                          ----------    --------------
time to time cause a Limited Amortization Amount to be distributed to the Class
A Noteholders on any Distribution Date from funds deposited for that purpose
pursuant to Section 4.3(b)(ii), provided, that (a) except as permitted by the
            ------------------  --------
following clause (b), any such Limited Amortization Amount shall be in an amount
          ----------
of not less than $1,000,000 per Conduit Purchaser, (b) the Limited Amortization
Amount may be less than $1,000,000 per Conduit Purchaser if the aggregate amount
available in the Principal Collections Subaccount to pay such Limited
Amortization Amount is less than $1,000,000 per Conduit Purchaser and the Seller
Amount would be less than zero if the Limited Amortization Amount is not
distributed and (c) when a Limited Amortization Amount of less than $1,000,000
per Conduit Purchaser is permitted by clause (b), the Limited Amortization
                                      ----------
Amount shall nevertheless be in an amount that is an integral multiple of
$500,000 unless the aggregate amount available in the Principal Collections
Subaccount to pay such Limited Amortization Amount is less than the lowest
integral multiple of $500,000 that is greater than or equal to the amount by
which the Seller Amount is less than the Minimum Seller Amount.

     In addition, the Seller may from time to time cause the Class A Notes to be
repaid in full or in part from the proceeds of issuance of another Series of
Notes, provided that (i) the Administrative Agent shall receive not less than
       --------
five Business Days' prior written notice of any such prepayment, and (ii)
together with any such prepayment, the Seller shall be required to pay Note
Interest accrued on

                                       26

<PAGE>

the prepaid amount through the date of prepayment, plus any Breakage Payment
resulting from such prepayment.

     Section 4.14 Maximum Class A Collateral Amount. The Class A Notes will have
                  ---------------------------------
a maximum aggregate principal amount equal to the Portfolio Sublimit (as defined
in the Note Purchase Agreement) (the "Maximum Class A Collateral Amount"), which
                                      ---------------------------------
represents the maximum Class A Collateral Amount pursuant to this Indenture
Supplement. The Class A Collateral Amount shall at no time exceed the Maximum
Class A Collateral Amount.

     Section 4.15 Shared Principal Collections. Subject to Section 8.5 of the
                  ----------------------------             -----------
Indenture, Shared Principal Collections for any Distribution Date will be
allocated to Series 2001-VFN in an amount equal to the product of (x) the
aggregate amount of Shared Principal Collections with respect to all Principal
Sharing Series for such Distribution Date and (y) a fraction, the numerator of
which is the Principal Shortfall for Series 2001-VFN for such Distribution Date
and the denominator of which is the aggregate amount of Principal Shortfalls for
all the Series which are Principal Sharing Series for such Distribution Date.
For this purpose, each outstanding series of certificates issued by Spiegel
Master Trust (other than series represented by the Collateral Certificate) shall
be deemed to be a Principal Sharing Series.

     Section 4.16 Excess Finance Charge Collections. Series 2001-VFN shall be an
                  ---------------------------------  ---------------------------
Excess Allocation Series with respect to Group One only. For this purpose, each
-------------------------------------------------------
outstanding series of certificates issued by Spiegel Master Trust (other than
series represented by the Collateral Certificate) shall be deemed to be a Series
in Group One. Subject to Section 8.6 of the Indenture, Excess Finance Charge
                         -----------
Collections with respect to the Excess Allocation Series in Group One for any
Distribution Date will be allocated to Series 2001-VFN in an amount equal to the
product of (x) the aggregate amount of Excess Finance Charge Collections with
respect to all the Excess Allocation Series in Group One for such Distribution
Date and (y) a fraction, the numerator of which is the Finance Charge Shortfall
for Series 2001-VFN for such Distribution Date and the denominator of which is
the aggregate amount of Finance Charge Shortfalls for all the Excess Allocation
Series in Group One for such Distribution Date. The "Finance Charge Shortfall"
                                                     ------------------------
for Series 2001-VFN for any Distribution Date will be equal to the excess, if
any, of (a) the full amount required to be paid, without duplication, pursuant
to Sections 4.5(a) through (e) on such Distribution Date over (b) the Monthly
   ---------------         ---
Period Finance Charge Subaccount Allocation with respect to such Distribution
Date (excluding any portion thereof attributable to Excess Finance Charge
Collections).

                                       27

<PAGE>

                                   ARTICLE V

                            DISTRIBUTIONS AND REPORTS
                                 TO NOTEHOLDERS

     Section 5.1 Distributions. (a) On each Distribution Date, the Paying Agent
                 -------------
shall distribute (in accordance with the certificate delivered by the Servicer
to the Indenture Trustee pursuant to Section 3.4(b) of the Indenture) to each
                                     --------------
Conduit Managing Agent the amounts specified in Sections 4.6 and 4.7 for such
                                                ------------     ---
Distribution Date, together with any Funding Costs payable to members of the
related Ownership Group (but only from funds available for that purpose pursuant
to Section 4.5(e)), by wire transfer of immediately available funds. If the
   --------------
total Funding Costs owed on any Distribution Date exceed the amounts available
for that purpose pursuant to Section 4.5(e) on the related Transfer Date, then
                             --------------
such amounts shall be applied to pay Funding Costs to each Conduit Managing
Agent pro rata based upon the aggregate Funding Costs owed to each member of
their respective Ownership Groups.

     (b) On each Distribution Date, the Paying Agent shall distribute (in
accordance with the certificate delivered by the Servicer to the Indenture
Trustee pursuant to Section 3.4(b) of the Indenture) to each Excess Collateral
                    --------------
Amount Holder of record on the immediately preceding Record Date (other than as
provided in Section 2.4(e) of the Indenture or Section 12.3 of the Indenture
            --------------                     ------------
respecting a final distribution) such Excess Collateral Amount Holder's pro rata
                                                                        --- ----
share (based on the aggregate Undivided Interests represented by the Excess
Collateral Amount held by such Excess Collateral Amount Holder) of amounts
available for that purpose as are payable to the Excess Collateral Amount
pursuant to Sections 4.6 and 4.7 by wire transfer of immediately available
            ------------     ---
funds.

     Section 5.2 Reports to Investors. (a) Monthly Noteholders' Statement. On or
                 --------------------      ------------------------------
before each Distribution Date, the Paying Agent shall forward to each Series
2001-VFN Noteholder and each Rating Agency a statement substantially in the form
of Exhibit C to this Indenture Supplement prepared by the Servicer.
   ---------

     (b) Annual Noteholders' Tax Statement. On or before January 21 of each
         ---------------------------------
calendar year, beginning with calendar year 2002, the Seller shall deliver to
the Indenture Trustee a statement containing (i) the total amount distributed
with respect to the Notes, (ii) the amount of such distribution allocable to
principal and (iii) the amount of such distribution allocable to Note Interest,
each aggregated for the preceding calendar year. On or before January 31 of each
calendar year, beginning with calendar year 2002, the Indenture Trustee shall,
at the written direction of the Servicer, distribute on behalf of the Seller, to
each Person who at any time during the preceding calendar year was a Series
2001-VFN Noteholder, a statement containing such customary information
(consistent with the treatment of the Series 2001-VFN Notes as debt) as
necessary or desirable to enable the Series 2001-VFN Noteholders to prepare
their tax returns consistent with the treatment of the Series 2001-VFN Notes as
debt instruments. Such obligations of

                                       28

<PAGE>

the Indenture Trustee shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Indenture Trustee
pursuant to any requirements of the Internal Revenue Code as from time to time
in effect.

                                   ARTICLE VI

                              SERIES PAY-OUT EVENTS

     Section 6.1 Series Pay-Out Events. If any one of the following events shall
                 ---------------------
occur with respect to the Series 2001-VFN Notes:

     (a) failure on the part of the Seller or the Servicer (i) to make any
payment, transfer or deposit required by the terms of the Indenture or this
Indenture Supplement or to give written instructions or to give written notice
to the Indenture Trustee to make such payment, transfer or deposit (A) in the
case of any payment, transfer or deposit of principal, or any instruction or
notice with respect thereto, within five days after the date on which such
payment, transfer, deposit, notice or instruction is required to be made or
given, (B) in the case of any payment, transfer or deposit of interest, or any
instruction or notice with respect thereto, on the date on which such payment,
transfer, deposit, notice or instruction is required to be made or given and (C)
in the case of any other payment, transfer or deposit, or any instruction or
notice with respect thereto, within five Business Days after the date on which
such payment, transfer, deposit, notice or instruction is required to be made or
given or (ii) duly to observe or perform in any material respect any covenants
or agreements applicable to it set forth in the Indenture or this Indenture
Supplement, which failure has a material adverse effect on the Class A
Noteholders and which continues unremedied for a period of 30 days after the
date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Seller by the Indenture Trustee, or to the Seller
and the Indenture Trustee by the Administrative Agent at the direction of one or
more Conduit Managing Agents and continues to affect materially and adversely
the interests of the Class A Noteholders for such period;

     (b) any representation or warranty made by Seller in the Indenture or this
Indenture Supplement, or any information contained in a computer file or
microfiche list required to be delivered by Seller pursuant to Section 2.1 or
                                                               -----------
2.6 of the Transfer and Servicing Agreement, shall prove to have been incorrect
---
in any material respect when made or when delivered, which continues to be
incorrect in any material respect for a period of 30 days after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given to the Seller by the Indenture Trustee, or to the Seller and the
Indenture Trustee by the Administrative Agent, and as a result of which the
interests of the Class A Noteholders are materially and adversely affected and
continue to be materially and adversely affected for such period; provided,
                                                                  --------
however, that a Series Pay Out Event pursuant to this Section 6.1 shall not be
-------                                               -----------
deemed to have occurred hereunder if the Seller has accepted reassignment of the
related Receivable, or all of such

                                       29

<PAGE>

Receivables, if applicable, and deposited any amounts required to be deposited
in connection therewith during such period in accordance with the provisions of
the Indenture;

     (c) (i) the Seller shall fail to designate Additional Accounts the
Receivables of which will be Eligible Receivables, as required by Section 2.6(a)
                                                                  --------------
of the Transfer and Servicing Agreement, and such failure shall continue for a
period of five Business Days, or (ii) the Aggregate Principal Balance shall be
less than the sum of the numerators used to determine the respective Allocation
Percentages with respect to Principal Receivables for each outstanding Series
for a period of ten (10) Business Days (or such longer period as the Required
Conduit Managing Agents shall allow, but in no event longer than the number of
days remaining in the Monthly Period in which such deficiency is reported);

     (d) any Servicer Default shall occur which would have a material adverse
effect on the Holders of the Class A Notes; an event described in Section 6.1(d)
                                                                  --------------
of the FCCCMNT Indenture Supplement shall occur; or an event described in clause
                                                                          ------
(ii) of Section 6.1(a) of the FCCCMNT Indenture Supplement relating to the
----    --------------
Servicer shall occur (and the applicable grace period lapses without cure);

     (e) the Administrative Agent shall notify the Servicer and the Indenture
Trustee in writing that the Purchase Commitment Expiration Date has occurred;

     (f) the average of the ratio for any three consecutive Monthly Periods of
Dilution for each such Monthly Period to the aggregate amount of receivables in
the entire portfolio of FCNB Preferred Charge accounts generated during the
prior Monthly Period shall exceed 28.00%;

     (g) a Conduit Downgrade Event shall have occurred; or an event described in
Section 6.1(h) of the FCMT Indenture Supplement shall occur;
--------------

     (h) the average of the Liquidation Rates for any three consecutive Monthly
Periods shall be less than 4.75%;

     (i) the average of the Excess Spread Percentages for any three consecutive
Monthly Periods shall be less than 2.00%;

     (j) 60 days following the date on which (A) the Securities and Exchange
Commission, any banking regulatory authority or any other Official Body having
jurisdiction over any Conduit Managing Agent or any of its subsidiaries
(including, if applicable, the Administrative Agent) shall require the
consolidation of the assets and liabilities of the related Conduit Purchaser on
the balance sheet of such Conduit Managing Agent or any of its subsidiaries or
shall require that capital be maintained with respect thereto under any capital
requirements as if such assets were owned by such Conduit Managing Agent or any
of its subsidiaries, or (B) the independent auditors for such Conduit Managing
Agent shall have advised such Conduit Managing Agent or any of its subsidiaries

                                       30

<PAGE>

in writing that in their opinion such consolidation is required by GAAP or
applicable Law, rule or regulations;

     (k) a Change of Control shall occur;

     (l) Spiegel shall (A) voluntarily seek, consent to, or acquiesce in the
benefit or benefits of any Debtor Relief Law, or (B) 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, within 10 Business Days after Spiegel has knowledge of such
proceeding or the filing thereof, the petition instituting same has not been
dismissed;

     (m) the Pension Benefit Guaranty Corporation shall file notice of a lien
pursuant to Section 4068 of the Employee Retirement Income Security Act of 1974
with regard to any of the assets of SCCIII or FCNB which lien relates to an
unpaid liability of at least $1,000,000, in the case of SCCIII, and $10,000,000,
in the case of FCNB, and shall not have been released within 40 days;

     (n) if at any time any Rating Agency withdraws or lowers its rating on the
Notes below A2 for Moody's or A for S & P;

     (o) without limiting the foregoing, the occurrence of an Event of Default
with respect to Series 2001-VFN and acceleration of the maturity of the Series
2001-VFN Notes pursuant to Section 5.3 of the Indenture; or
                           -----------

     (p) prior to the SMT Termination Date, a Trust Pay Out Event shall occur
under (and as defined in) the Pooling and Servicing Agreement;

then, and in any such event described in subparagraph (a), (b), (d), (f), (h),
                                         ------------ ---  ---  ---  ---  ---
(k) or (m) after the applicable grace period set forth in such subparagraphs,
---    ---
either the Indenture Trustee or the Administrative Agent at the direction of the
Required Conduit Managing Agents by notice then given in writing to the Seller
and the Servicer (and to the Indenture Trustee if given by the Administrative
Agent) may declare that a pay out event (a "Series Pay Out Event") has occurred
                                            --------------------
as of the date of such notice and in the case of any event described in
subparagraph (c), (e), (g), (i), (j), (l), (n), (o) or (p) a Series Pay Out
------------ ---  ---  ---  ---  ---  ---  ---  ---    ---
Event shall occur without any notice or other action on the part of the
Indenture Trustee, the Administrative Agent or the Noteholders immediately upon
the occurrence of such event. Upon the occurrence of a Pay Out Event, the Seller
shall give prompt written notice to the Rating Agencies.

                                   ARTICLE VII

                                  MISCELLANEOUS

     Section 7.1 Terms Change Condition. FCNB will not make any change in the
                 ----------------------
basic terms of the Charge Account Agreements in respect of the Accounts that
would cause the minimum monthly payment specified therein (i) to be less

                                       31

<PAGE>

than $12.50 (or the remaining balance, if less) unless the Required Conduit
Managing Agents shall have given their prior written consent with respect
thereto or (ii) to be less than $15 (or the remaining balance, if less) unless
either the Required Conduit Managing Agents shall have given their prior written
consent with respect thereto or the Terms Change Enhancement Increase Condition
is satisfied with respect thereto (the "Terms Change Condition"). For purposes
                                        ----------------------
of this Section 7.1, credit based promotions, including deferred billing
        -----------
arrangements, skip payment programs and payment holidays shall not be deemed to
be a change in the basic terms of the Charge Account Agreements so long as (i)
the terms on which FCNB provides such promotions to the relevant merchant are at
least as favorable to FCNB (as determined in good faith by FCNB) as FCNB would
obtain in a comparable arm's length transaction with a merchant that is not an
Affiliate of FCNB and (ii) the allocable share of any related merchant subsidy
payments for any Monthly Period are paid by FCNB to the Trust on an "as earned"
basis. For purposes of the preceding sentence, the share of such subsidy
payments allocable to the Trust during any Monthly Period shall be based upon
FCNB's good faith estimate (which shall be final and binding for all purposes of
the Indenture) of the portion thereof allocable to the Accounts for such period.
Any such payment shall be made by FCNB on the Determination Date following the
Monthly Period in which such payments are earned and shall be treated for all
purposes of the Indenture (including for purposes of calculating Portfolio
Yield) as Finance Charge Collections for such Monthly Period.

     Section 7.2 Permitted Successor Servicer. With respect to Series 2001-VFN,
                 ----------------------------
any financial institution which does not qualify as a permitted Successor
Servicer under Section 10.2 of the Indenture shall qualify as a permitted
               ------------
Successor Servicer if approved in writing by each Conduit Managing Agent and
written notice is given thereof by the Seller to the Administrative Agent and
each Rating Agency.

     Section 7.3 Successors and Assigns. This Indenture Supplement shall be
                 ----------------------
binding upon and inure to the benefit of the parties hereto and their respective
permitted successors and assigns, except that the Seller may not assign or
transfer any of its rights under this Indenture Supplement (except for transfers
to Affiliates) without the prior written consent of each Conduit Managing Agent
and written notice is given thereof by the Seller to Administrative Agent.

     Section 7.4 Final Distribution. Written notice of any termination,
                 ------------------
specifying the Distribution Date upon which the Series 2001-VFN Noteholders may
surrender their Series 2001-VFN Notes for payment of the final distribution and
cancellation shall be given by the Indenture Trustee not later than the 30th day
immediately preceding the Distribution Date on which final payment of the Series
2001-VFN Notes shall be made.

     Section 7.5 Amendments. No amendment or waiver of any provision of the
                 ----------
Indenture or this Indenture Supplement and no consent to any departure by the
Seller, or the Servicer herefrom, shall be effective unless in writing signed by
(x)

                                       32

<PAGE>

the Required Conduit Managing Agents and (y) in the case of any amendment, the
Seller and the Servicer, and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no such amendment, waiver or consent shall,
       --------  -------
unless in writing signed by all the Conduit Managing Agents, do any of the
following: (a) subject the Administrative Agent, the Conduit Purchasers or the
Conduit Managing Agents to any additional obligations, (b) reduce the amount of
Note Interest, principal or any fees payable hereunder, (c) postpone any date
scheduled for any reduction of Class A Collateral Amount or for any payment of
Note Interest or any fees payable hereunder, (d) amend any Pay Out Event or
waive any automatic Pay Out Event, (e) amend the definition of "Base Rate,"
"Base Excess Collateral Amount Percentage," "Delinquency Amount," "Dilution,"
"Excess Spread Percentage," "Minimum Seller Percentage," "Liquidation Rate,"
"Portfolio Yield" or "Required Excess Collateral Amount Percentage," (f) change
the percentage of, or the numbers of, Conduit Managing Agents, which shall be
required for any amendment, waiver or consent or for any other action hereunder,
or (g) amend this Section 13. The Servicer shall give each Rating Agency prior
                  ----------
written notice of each amendment to this Indenture Supplement. No amendment
described in clause (b) through (g) above shall be effective unless the Rating
             ----------         ---
Agency Condition has been satisfied.

     Section 7.6 Effectiveness. This Indenture Supplement shall become effective
                 -------------
as of the day and year first above written.

     Section 7.7 Ratification of Indenture. As supplemented by this Indenture
                 -------------------------
Supplement, the Indenture is in all respects ratified and confirmed and the
Indenture as so supplemented by this Indenture Supplement shall be read, taken
and construed as one and the same instrument.

     Section 7.8 Counterparts. This Indenture 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 7.9 GOVERNING LAW. THIS INDENTURE 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, PROVIDED,
HOWEVER, THAT THE DUTIES AND OBLIGATIONS OF THE INDENTURE TRUSTEE SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
WITHOUT REFERENCE TO ITS CHOICE OF LAW.

     Section 7.10 Consents. [Reserved.]
                  --------

                                       33

<PAGE>

     Section 7.11 Certain Calculations. In accordance with Section 1.3 of the
                  --------------------                     -----------
Indenture, the Servicer has adopted the following method of determining the
amount of 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 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) 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
     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).

     Notwithstanding the terms of Section 1.3 of the Indenture, the Servicer
                                  -----------
shall not adopt a method of determining the amount of Finance Charge

                                       34

<PAGE>

Receivables different from the method described above without the consent of
each Conduit Managing Agent.

     Section 7.12 Repurchase Requests. On any Business Day, Seller may make a
                  -------------------
written offer (a "Repurchase Offer") to each Conduit Managing Agent to redeem
                  ----------------
all or a portion of the principal balance of the Class A Notes. Each Conduit
Managing Agent may accept or reject such offer. If all of the Conduit Managing
Agents accept the offer, then on the day that the repurchase is consummated the
purchase price agreed upon between Seller and the Conduit Managing Agents shall
be deposited in the Collection Account and shall be distributed to the Conduit
Managing Agents on the date of the repurchase. Upon such payment, the Class A
Collateral Amount shall decrease by an amount equal to the principal amount of
the interest conveyed, and the Excess Collateral Amount shall automatically
decrease to an amount so that the Excess Collateral Amount (after such decrease)
shall equal the Required Excess Collateral Amount Percentage of the Collateral
Amount (after such decrease). To the extent agreed upon between Seller and the
Conduit Managing Agents, a portion of the purchase price paid shall decrease the
amount of Class Note Interest and Program Commitment Fee payable on the next
Distribution Date.

     Section 7.13 Perfection Representations, Warranties and Covenants. The
                  ----------------------------------------------------
parties hereto agree that the representations, warranties and covenants set
forth in Schedule I shall be a part of this Indenture Supplement for all
         ----------
purposes.

     Section 7.14 Rights of the Indenture Trustee. The Indenture Trustee shall
                  -------------------------------
be entitled to the same rights, protections, immunities and indemnities set
forth in the Master Indenture as if specifically set forth herein.

     Section 7.15 Limitation of Liability. Notwithstanding any other provision
                  -----------------------
herein or elsewhere, this Indenture Supplement has been executed and delivered
by Bankers Trust Company, not in its individual capacity, but solely in its
capacity as Owner Trustee of the Trust, in no event shall Bankers Trust Company
in its individual capacity have any liability in respect of the representations,
warranties, or obligations of the Trust hereunder or under any other document,
as to all of which recourse shall be had solely to the assets of the Trust, and
for all purposes of this Indenture Supplement and each other document, the Owner
Trustee (as such or in its individual capacity) shall be subject to, and
entitled to the benefits of, the terms and provisions of the Trust Agreement.

                               [Signatures follow]

                                       35

<PAGE>

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

                                          SPIEGEL CREDIT CARD MASTER NOTE TRUST,
                                          as Issuer

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

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

                                          THE BANK OF NEW YORK,
                                          as Indenture Trustee

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

                                       36

<PAGE>

Acknowledged and Accepted:

FIRST CONSUMERS NATIONAL BANK,
as Servicer

Name:
     ----------------------------

Title:
      ---------------------------

Acknowledged and Accepted:

SPIEGEL CREDIT CORPORATION III,
as Seller

Name:
     ---------------------------

Title:
     ---------------------------

                                       37

<PAGE>

                                    EXHIBIT A
                                       to
                      SERIES 2001-VFN INDENTURE SUPPLEMENT

                         FORM OF SERIES 2001-VFN CLASS A
                              VARIABLE FUNDING NOTE

     THIS CLASS A NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NO RESALE OR
                 --------------
OTHER TRANSFER OF THIS CLASS A NOTE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE
TERMS OF THE NOTE PURCHASE AGREEMENT AND EITHER (A) PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES OR "BLUE
SKY" LAWS OR (B) IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS TO (I) A
PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
("QIB") WITHIN THE MEANING THEREOF IN RULE 144A UNDER THE SECURITIES ACT THAT IS
AWARE THAT THE RESALE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
(II) A PERSON WHO IS AN ACCREDITED INVESTOR AS DEFINED IN RULE 501(A) UNDER THE
SECURITIES ACT OR (III) AN INSTITUTION WHICH HAS SUCH KNOWLEDGE AND EXPERIENCE
IN FINANCIAL AND BUSINESS MATTERS AS TO BE CAPABLE OF EVALUATING THE MERITS AND
RISKS OF THE INVESTMENT THEREIN. NONE OF THE SELLER, THE TRANSFER AGENT AND
REGISTRAR OR THE INDENTURE TRUSTEE IS OBLIGATED TO REGISTER THE NOTES UNDER THE
SECURITIES ACT OR ANY OTHER SECURITIES OR "BLUE SKY" LAW.

     EACH CLASS A NOTEHOLDER AND EACH BENEFICIAL OWNER OF A CLASS A NOTE, BY ITS
ACCEPTANCE THEREOF OR OF SUCH BENEFICIAL INTEREST, WILL BE DEEMED TO HAVE
REPRESENTED AND AGREED AS FOLLOW: (i) SUCH HOLDER OR OWNER UNDERSTANDS THAT THE
CLASS A NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OR
ANY STATE OR OTHER APPLICABLE SECURITIES LAW AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED UNLESS REGISTERED PURSUANT TO, OR EXEMPT FROM REGISTRATION
UNDER, THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAWS, (ii) SUCH
HOLDER OR OWNER WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER SUCH CLASS A
NOTE OR ANY INTEREST THEREIN AT ANY TIME EXCEPT TO THE SELLER OR TO A PERSON
WHOM SUCH TRANSFEROR OF THE CLASS A NOTE REASONABLY BELIEVES IS A QIB PURCHASING
FOR ITS OWN ACCOUNT IN ACCORDANCE WITH RULE 144A TO WHOM NOTICE IS GIVEN THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A AND AFTER DELIVERY OF THE DOCUMENTATION REQUIRED BY THE INDENTURE AND THIS
SUPPLEMENTAL INDENTURE, AND (iii) SUCH HOLDER OR OWNER IS A QIB PURCHASING FOR
ITS OWN ACCOUNT IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT AND HAS
RECEIVED

                                      A-1

<PAGE>

NOTICE THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A.

     NEITHER THIS CLASS A NOTE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED,
ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED, EXCEPT IN ACCORDANCE WITH
SECTION 2.5 OF THE INDENTURE REFERRED TO HEREIN. THE CLASS A NOTEHOLDER MAY NOT
-----------
SELL OR OTHERWISE TRANSFER ALL OR ANY PORTION OF THIS CLASS A NOTE, EXCEPT IN
ACCORDANCE WITH THE NOTE PURCHASE AGREEMENT.

     THE PRINCIPAL AMOUNT OF THIS CLASS A NOTE WILL BE REDUCED FROM TIME TO TIME
BY DISTRIBUTIONS ON THIS CLASS A NOTE ALLOCABLE TO PRINCIPAL. IN ADDITION, THIS
CLASS A NOTE MAY BE INCREASED AT THE REQUEST OF THE SELLER SUBJECT TO CERTAIN
TERMS AND CONDITIONS SET FORTH IN THE SERIES 2001-VFN INDENTURE SUPPLEMENT
REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CLASS A
NOTES, THE PRINCIPAL AMOUNT OF THIS CLASS A NOTE MAY VARY FROM TIME TO TIME.
ANYONE ACQUIRING THIS CLASS A NOTE MAY ASCERTAIN THE CURRENT PRINCIPAL AMOUNT OF
THIS CLASS A NOTE BY INQUIRY OF THE INDENTURE TRUSTEE. ON THE DATE OF THE
INITIAL ISSUANCE OF THE CLASS A NOTES, THE INDENTURE TRUSTEE IS THE BANK OF NEW
YORK.

                                      A-2

<PAGE>

                                                        MAXIMUM PRINCIPAL AMOUNT
No.                                                      $
     ----------                                           ----------------------

              SPIEGEL CREDIT CARD MASTER NOTE TRUST SERIES 2001-VFN
                   CLASS A VARIABLE FUNDING ASSET BACKED NOTE

     Spiegel Credit Card Master Note Trust (herein referred to as the "Issuer"
or the "Trust"), an Illinois common law trust governed by a Trust Agreement
dated as of December 1, 2000, for value received, hereby promises to pay to [_],
or registered assigns, subject to the following provisions, the principal sum of
[____] DOLLARS ($[______]), or such greater or lesser amount as determined in
accordance with the Indenture, on the Scheduled Series 2001-VFN Termination
Date, except as otherwise provided below or in the Indenture. The Issuer will
pay interest on the unpaid principal amount of this Note at the Note Interest
Rate on each Distribution Date until the principal amount of this Note is paid
in full. Interest on this Note will accrue for each Distribution Date from and
including the most recent Distribution Date on which interest has been paid to
but excluding such Distribution Date or, for the initial Distribution Date, from
and including the Closing Date to but excluding such Distribution Date. Interest
will be computed as provided in the Indenture. Principal of this Note shall be
paid in the manner specified on the reverse hereof.

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

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

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

                                      A-3

<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this Class A Series 2001-VFN
Asset Backed Note to be duly executed.

                                   SPIEGEL CREDIT CARD MASTER NOTE
                                   TRUST,
                                   as Issuer

                                   By:  Bankers  Trust  Company,  not in its
                                        individual  capacity but solely as Owner
                                        Trustee under the Trust Agreement

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

Dated:

                                      A-4

<PAGE>

                           GRID TO CLASS A NOTE NO.
                                                    --

--------------------------------------------------------------------------------
  Date of        Principal       Class A Increase       Amount of       Notation
Transaction   Amount for this         Amount        Principal Payment   Made By
                Series before
              giving effect to
              the Transaction
                on such Date
--------------------------------------------------------------------------------
              $

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      A-5

<PAGE>

                        Trustee's Note of Authentication

     This is one of the Series 2001-VFN Class A Variable Funding Asset Backed
Notes referred to in the within-mentioned Indenture.

                                              THE BANK OF NEW YORK, as Indenture
                                              Trustee

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

                                      A-6

<PAGE>

                                    EXHIBIT B

                    FORM OF MONTHLY PAYMENT INSTRUCTIONS AND
                        NOTIFICATION TO INDENTURE TRUSTEE

                      SPIEGEL CREDIT CARD MASTER NOTE TRUST
                                 SERIES 2001-VFN

The undersigned, a duly authorized representative of First Consumers National
Bank ("FCNB"), as Servicer pursuant to the Master Indenture, dated as of
December 1, 2000 (the "Master Indenture") between the Issuer and The Bank of New
                       ----------------
York, as indenture trustee (the "Indenture Trustee"), as supplemented by the
                                 -----------------
Indenture Supplement, dated as of October 17, 2001 (the "Indenture Supplement"
                                                         --------------------
and together with the Master Indenture, the "Indenture"), does hereby certify as
                                             ---------
follows:

     A. Capitalized terms used in this Certificate have their respective
meanings set forth in the Indenture, as amended by the Series 2001-VFN Indenture
Supplement thereto; provided, that the "preceding Monthly Period" means the
monthly Period immediately preceding the calendar month in which this
Certificate is delivered. References herein to certain sections and Sections are
references to the respective sections and Sections of the Indenture.

     B. FCNB is the Servicer under the Indenture.

     C. The undersigned is a Servicing Officer.

     D. The date of this notice is a Determination Date under the Indenture.

                                      B-1

<PAGE>

I.   INSTRUCTION TO MAKE A WITHDRAWAL

     Pursuant to Section 4.5, the Servicer does hereby instruct the Indenture
                 -----------
Trustee (i) to make a withdrawal from the Finance Charge Subaccount on
          ,     , which date is a Transfer Date under the Indenture, in an
----------  ----
aggregate amount as set forth below [, including $           to be withdrawn
                                                  ----------
from the Principal Subaccount pursuant to Section 4.10,] in respect of the
                                          --------- --
following amounts and (ii) to apply the proceeds of such withdrawal in
accordance with Section 4.5:
                --------- -

     A.   Pursuant to Section 4.5(a):
          --------------------- ----
          Note Interest for the preceding Accrual Period             $
                                                                      ----------
     B.   Pursuant to Section 4.5(b):
          --------------------- ----
          Investor Monthly Servicing Fee for the preceding           $
                                                                      ----------
          Monthly Period
     C.   Pursuant to Section 4.5(c):
          --------------------- ----
          Investor Default Amount and any Investor Uncovered         $
                                                                      ----------
          Dilution Amounts for the preceding Monthly Period
          (less the aggregate amount of Investor Charge Offs
          in respect of such Monthly Period)
     D.   Pursuant to Section 4.5(d):
          --------------------- ----
          Aggregate reimbursed Investor Charge Off and Excess        $
                                                                      ----------
          Collateral Amount Reallocated Amounts
     E.   Funding Costs for the Preceding Monthly Period             $
                                                                      ----------
     F.   Pursuant to Section 4.5(f):
          --------------------- ----
          Excess Spread payable to the Excess Collateral             $
                                                                      ----------
          Amount Holders

II.  INSTRUCTION TO MAKE A WITHDRAWAL

     Pursuant to Section 4.7, the Servicer does hereby instruct the Indenture
                 --------- -
Trustee (i) to make a withdrawal from the Principal Collection Subaccount on
          ,     , which date is a Transfer Date under the Indenture, and (ii)
----------  ----
apply such amount in accordance with Section 4.7:
                                     --------- -

     A.   Amounts to be distributed to the Conduit Managing          $
                                                                      ----------
          Agents in accordance with Section 4.7(b)(A) and
          Section 5.1(a)

                                      B-2

<PAGE>

     B.   Amounts to be distributed to the Noteholders in            $
                                                                      ----------
          accordance with Section 4.7(c) and Section 5.1(c)

     C.   Amount to be distributed to the holder of the Seller
          Interest                                                   $
                                                                      ----------

     IN WITNESS WHEREOF, the undersigned has duly executed this Certificate this
     day of           , 200  .
----        ----------     --

                                                  FIRST CONSUMERS NATIONAL BANK,
                                                  as Servicer

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

                                      B-3

<PAGE>

                                    EXHIBIT C
                                       to
                      SERIES 2001-VFN INDENTURE SUPPLEMENT

                                    [TO COME]

<PAGE>

                                   SCHEDULE 1
                     TO SERIES 2001-VFN INDENTURE SUPPLEMENT

                     PERFECTION REPRESENTATIONS, WARRANTIES
                                  AND COVENANTS

     (a) In addition to the representations, warranties and covenants contained
in the Indenture, the Issuer hereby represents, warrants and covenants to the
Indenture Trustee as follows as of October   , 2001:
                                           --

     (1) The Indenture creates a valid and continuing security interest (as
defined in the applicable Uniform Commercial Code) in the Collateral Certificate
in favor of the Indenture Trustee, which security interest is prior to all other
Liens, and is enforceable as such against creditors of and purchasers from
Issuer.

     (2) The Collateral Certificate constitutes an "instrument," a "general
intangible" or a "certificated security" within the meaning of the applicable
Uniform Commercial Code.

     (3) Issuer owns and has good and marketable title to the Collateral
Certificate free and clear of any Lien, claim or encumbrance of any Person;
provided that nothing in this paragraph (a) (3) shall prevent or be deemed to
--------                      -----------------
prohibit Issuer from suffering to exist upon any of the Receivables any Liens
for any taxes if such taxes shall not at the time be due and payable or if FCNB,
Seller or Issuer, as applicable, shall currently be contesting the validity
thereof in good faith by appropriate proceedings and shall have set aside on its
books adequate reserves with respect thereto.

     (4) There are no consents or approvals required by the terms of the
Collateral Certificate for the pledge of the Collateral Certificate to the
Indenture Trustee pursuant to the Indenture.

     (5) Issuer (or the Administrator on behalf of the Issuer) has caused the
filing of all appropriate financing statements in the proper filing office in
the appropriate jurisdictions under applicable law in order to perfect the
security interest granted to the Indenture Trustee under the Indenture in the
Collateral Certificate.

     (6) There is only one executed copy of the Collateral Certificate and such
copy has been delivered to the Indenture Trustee. The Collateral Certificate is
registered in the name of the Indenture Trustee, upon original issue or
registration of transfer by the Issuer.

     (7) Other than the pledge of the Collateral Certificate to Indenture
Trustee pursuant to the Indenture, Issuer has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed the Collateral
Certificate. Issuer has not authorized the filing of and is not aware of any
financing statements against Issuer that include a description of collateral
covering the Collateral Certificate, except for the financing statement filed
pursuant to the Indenture.

<PAGE>

     (8) The Issuer is not aware of any judgment, ERISA or tax lien filings
against the Issuer.

     (9) The Collateral Certificate does not have any marks or notations
indicating that it has been pledged, assigned or otherwise conveyed to any
Person other than the Indenture Trustee.

     (10) Notwithstanding any other provision of the Indenture, the
representations and warranties set forth in this Schedule 1 shall be continuing,
                                                 ----------
and remain in full force and effect, until such time as the Collateral
Certificate is retired.

     (b) Indenture Trustee covenants that it shall not, without satisfying the
Rating Agency Condition, waive a breach of any representation or warranty set
forth in this Schedule 1.
              ----------

     (c) The Servicer covenants that, in order to evidence the interests of
Issuer and Indenture Trustee under the Indenture, Servicer shall take such
action, or execute and deliver such instruments (other than effecting a Filing
(as defined below), unless such Filing is effected in accordance with this
paragraph (c)) as may be necessary or advisable (including, without limitation,
-------------
such actions as are requested by Indenture Trustee) to maintain and perfect, as
a first priority interest, Indenture Trustee's security interest in the
Collateral Certificate. Servicer shall, from time to time and within the time
limits established by law, prepare and present to Indenture Trustee for
Indenture Trustee to authorize (based in reliance on the Opinion of Counsel
hereinafter provided for) the Servicer to file, all financing statements,
amendments, continuations, initial financing statements in lieu of a
continuation statement, terminations, partial terminations, releases or partial
releases, or any other filings necessary or advisable to continue, maintain and
perfect the Indenture Trustee's security interest in the Collateral Certificate
as a first-priority interest (each a "Filing"). Servicer shall present each such
                                      ------
Filing to the Indenture Trustee together with (x) an Opinion of Counsel to the
effect that such Filing is (i) consistent with grant of the security interest to
the Indenture Trustee pursuant to the Granting Clause of the Indenture, (ii)
satisfies all requirements and conditions to such Filing in the Indenture and
(iii) satisfies the requirements for a Filing of such type under the Uniform
Commercial Code in the applicable jurisdiction (or if the Uniform Commercial
Code does not apply, the applicable statute governing the perfection of security
interests), and (y) a form of authorization for Indenture Trustee's signature.
Upon receipt of such Opinion of Counsel and form of authorization, Indenture
Trustee shall promptly authorize in writing Servicer to, and Servicer shall,
effect such Filing under the Uniform Commercial Code without the signature of
Issuer or Indenture Trustee where allowed by applicable law. Notwithstanding
anything else in the Indenture to the contrary, the Servicer shall not have any
authority to effect a Filing without obtaining written authorization from the
Trustee in accordance with this paragraph (c).
                                -------------

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