Document:

THIRD AMENDMENT AGREEMENT
                               to
                   FINGERHUT RECEIVABLES, INC.
                   SECURITY PURCHASE AGREEMENT

          This Third Amendment Agreement (the "Amendment") is
executed as of the 28th day of August, 2000, by and among
Fingerhut Receivables, Inc. (the "Transferor"), Quincy Capital
Corporation ("QCC"), Falcon Asset Securitization Corporation
("Falcon"), Four Winds Funding Corporation ("Four Winds" and,
collectively with QCC and Falcon, the "Conduit Purchasers"), Bank
of America, N.A. ("BofA" or the "Administrative Agent"), Bank
One, NA (Main Office Chicago) ("Bank One"), and Commerzbank
Aktiengesellschaft, Chicago Branch ("Commerzbank" and
collectively with BofA and Bank One, the "Alternate Purchasers"
or the "Managing Agents").

                      W I T N E S S E T H:

          WHEREAS, the Transferor, the Conduit Purchasers, the
Managing Agents, the Alternate Purchasers and the Administrative
Agent executed the Security Purchase Agreement dated as of July
30, 1998, as amended by the First Amendment Agreement dated as of
July 29, 1999 and the Second Amendment Agreement dated as of
July 20, 2000 (the "Security Purchase Agreement").  Capitalized
terms used herein and not otherwise defined shall have the
meanings assigned to such terms in the Security Purchase
Agreement.

          WHEREAS, the parties hereto have agreed to amend the
Security Purchase Agreement on the terms and conditions
hereinafter set forth:

          NOW, THEREFORE, the parties hereto agree as follows:

          SECTION 1.  Amendment of the Security Purchase
Agreement.  The Security Purchase Agreement is, effective on the
date hereof and subject to the satisfaction of the condition
precedent set forth in Section 3 below, hereby amended as
follows:

          1.1  The definition of "Specified Termination Date"
contained in Section 1.01 of the Security Purchase Agreement
shall be amended and restated in its entirety to read as follows:

               "Specified Termination Date" shall mean
          August 27, 2001, or such later date to which the
          Specified Termination Date may be extended in
          accordance with Section 2.05 hereof."

          1.2  This Amendment shall be deemed to extend the
Specified Termination Date for purposes of Section 2.05 of
the Security Purchase Agreement.

          1.3  Upon consummation of the sale referred to in
Section 2 hereof and for so long as the Class C Securities are
held by the Transferor, all references to the Class C Securities,
the Class C Commitment Amount, the Class C Investment Amount, the
Additional Class C Invested Amount, the Class C Initial Invested
Amount, the Class C Facility Usage Fees and the Class C Principal
shall be deleted from the Security Purchase Agreement.

          SECTION 2.  Sale of Class C Securities.  Pursuant to an
Assignment and Assumption Agreement in the form attached hereto
as Exhibit A, the Conduit Purchasers and Alternate Purchasers
shall sell the Class C Securities to the Transferor.

          SECTION 3.  Condition Precedent. This Amendment shall
become effective as of the date hereof upon the execution hereof
by all of the parties hereto.

          SECTION 4.  Miscellaneous.

          4.1  Ratification.  As amended hereby, the Security
Purchase Agreement is in all respects ratified and confirmed and
the Security Purchase Agreement as so amended by this Amendment
shall be read, taken and construed as one and the same
instrument.

          4.2  Representation and Warranty.  The Transferor
represents and warrants that this Amendment has been duly
authorized, executed and delivered by it and constitutes its
legal, valid and binding obligation, enforceable in accordance
with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or other similar laws now or hereafter in
effect affecting the enforcement of creditors' rights in general
and by general principles of equity (whether considered in a suit
at law or in equity).

          4.3  Governing Law; Parties.  THIS AMENDMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.  Whenever in this Amendment there is a
reference made to any of the parties hereto, such reference shall
also be a reference to the successors and assigns of such party,
including, without limitation, any debtor-in-possession or
trustee.  The provisions of this Amendment shall be binding upon
and shall inure to the benefit of the successors and assigns of
the parties hereto.

          4.4  Counterparts; Severability. This Amendment may be
executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which when taken
together shall constitute one and the same agreement.  In case
any provision in or obligation under this Amendment shall be
invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions
or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired
thereby.

          4.5  Expenses.  The Transferor agrees to pay all
reasonable out-of-pocket expenses (including, without limitation,
the fees and expenses of counsel to the Purchasers) incurred by
the Administrative Agent or the Purchasers in connection with the
negotiation, execution, delivery and preparation of this
Amendment.

          IN WITNESS WHEREOF, the Transferor, the Purchasers, the
Managing Agents, and the Administrative Agent have caused this
Amendment to be fully executed by their respective officers as of
the day and year first above written.

                         FINGERHUT RECEIVABLES, INC.,
                         as Transferor

                         By:  /s/ Brian M. Szames
                           Name:  Brian M. Szames
                           Title:  President

                         QUINCY CAPITAL CORPORATION,
                         as Conduit Purchaser

                         By:  /s/ Juliana C. Johnson
                           Name:  Juliana C. Johnson
                           Title:  Vice President

                         FALCON ASSET SECURITIZATION CORPORATION,
                         as Conduit Purchaser

                         By:  /s/ Andrew Leszczynski
                           Name:  Andrew Leszczynski
                           Title:  Authorized Signatory

                         FOUR WINDS FUNDING CORPORATION,
                         as Conduit Purchaser

                         By:  /s/  James T. Ahern
                           Name:  James T. Ahern
                           Title:  Senior Vice President

                         By:  /s/  Carl Kemmerer
                           Name:  Carl Kemmerer
                           Title:  Assistant Treasurer

                         BANK OF AMERICA, N.A.,
                         as Alternate Purchaser and Managing
                         Agent and as Administrative Agent for the
                         Purchasers

                         By  /s/ Elliot Lemon
                           Name:  Elliot Lemon
                           Title:  Vice President

                         BANK ONE, NA (MAIN OFFICE CHICAGO),
                         as Alternate Purchaser and Managing
                         Agent

                         By:  /s/ Andrew Leszczynski
                           Name:  Andrew Leszczynski
                           Title:  Authorized Signatory

                         COMMERZBANK AKTIENGESELLSCHAFT, CHICAGO
                         BRANCH, as Alternate Purchaser and
                         Managing Agent

                         By:  /s/  James T. Ahern
                           Name:  James T. Ahern
                           Title:  Senior Vice President

                         By:  /s/  Carl Kemmerer
                           Name:  Carl Kemmerer
                           Title:  Assistant TreasurerASSIGNMENT AND ASSUMPTION AGREEMENT

          Reference is made to the Security Purchase Agreement
dated as of July 30, 1998 , as amended by the First Amendment
Agreement dated as of July 29, 1999, the Second Amendment
Agreement dated as of July 20, 2000 and the Third Amendment dated
as of August 28, 2000 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the
"Security Purchase Agreement"), by and among Fingerhut
Receivables, Inc., as Transferor, certain Purchasers and Managing
Agents parties thereto, and Bank of America, N.A., as
Administrative Agent for such Purchasers.  To the extent not
defined herein, capitalized terms used herein have the meanings
assigned to such terms in the Security Purchase Agreement.

          Quincy Capital Corporation, Falcon Asset Securitization
Corporation, Four Winds Funding Corporation, Bank of America,
N.A., Bank One, NA (Main Office Chicago), and Commerzbank
Aktiengesellschaft, Chicago Branch (each an "Assignor" and
collectively the "Assignors") and Fingerhut Receivables, Inc., a
Delaware corporation (the "Assignee"), hereby agree as follows:

          1.   In consideration of the Assignee's payment of
$54,545,455 (the "Purchase Price"), each of the Assignors hereby
sells and assigns to the Assignee, and the Assignee hereby
purchases and assumes from the Assignor, a 100% interest in its
interest in the Class C Securities of its Purchaser Group and/or
the Class C Invested Amount, and to each such Assignor's rights
and obligations with respect to the Class C Securities under the
Security Purchase Agreement on August 28, 2000 (the "Purchase
Date").  The Purchase Price shall be paid on the Purchase Date.
All interest and fees accrued on the Class C Securities to but
excluding the Purchase Date, shall be paid to the Assignors in
accordance with the Series Supplement.

          2.   Each of the Assignors (i) represents and warrants
that it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear
of any Lien created by it; (ii) makes no representation or
warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in
connection with the Security Purchase Agreement, the other
Principal Agreements or any other instrument or document
furnished pursuant thereto or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Security
Purchase Agreement, the other Principal Agreements, the
Receivables or other Trust Property or any such other instrument
or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with
respect to the financial condition of Transferor or Servicer or
the performance or observance by Transferor or Servicer of any of
their respective obligations under the Security Purchase
Agreement, the other Principal Agreements or any instrument or
document furnished pursuant thereto.

          3.   The Assignee (i) confirms that it has received a
copy of the Security Purchase Agreement, the Pooling and
Servicing Agreement, the Series Supplement and such other
instruments, documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter
into this Assignment and Assumption Agreement and purchase such
interest in the Assignor's rights and obligations under the
Security Purchase Agreement; (ii) specifies as its address for
notices the office set forth beneath its name on the signature
pages hereof; and (iii) agrees that it will not institute against
any Conduit Purchaser any proceeding of the type referred to in
Section 9.11 of the Security Purchase Agreement prior to the date
which is one year and one day after the payment in full of all
commercial paper and other debt securities issued by any Conduit
Purchaser.

          4.   (i) The Assignee shall be the owner of the Class C
Invested Amount, (ii) the Assignors shall be released from their
respective obligations to fund any Additional Invested Amount
with respect to the Class C Securities requested by the
Transferor subsequent to the Purchase Date and all other
obligations, if any, of the Assignors under and in connection
with the Security Purchase Agreement or any other Principal
Agreements with respect to the Class C Securities to the extent
of this Assignment and Assumption Agreement, (iii) all
distributions in respect of the Class C Invested Amount shall be
made to the Assignee, (iv) the defined terms and other terms and
provisions of the Security Purchase Agreement and the other
Principal Agreements shall be interpreted in accordance with the
foregoing, and (v) if requested by the Administrative Agent, the
Assignors and the Assignee will execute and deliver such further
agreements and documents and take such other actions as the
Administrative Agent may reasonably request to evidence and give
effect to the foregoing.

          5.   This Assignment and Assumption Agreement shall be
effective on the Purchase Date upon receipt by the Administrative
Agent and the Transferor of this Assignment and Assumption
Agreement duly executed by Assignors, the Assignee and the
Managing Agents for the Assignors.

          6.   As of the Purchase Date, (i) the Assignee shall
not be a party to the Security Purchase Agreement nor have any
rights and obligations of a Conduit Purchaser or an Alternate
Purchaser thereunder, notwithstanding the provisions of Section
8.01 of the Security Purchase Agreement and (ii) the Assignors
shall, to the extent provided in this Assignment and Assumption
Agreement with respect to the Class C Securities, relinquish
their respective rights and be released from their respective
obligations under the Security Purchase Agreement.

          7.   The Assignee covenants and agrees (i) not to
assign, sell or transfer all or any part of its interest in any
Class C Securities to any Person that is not an Affiliate of the
Transferor or the Servicer without the prior written consent of
the Required Senior Securityholders and (ii) that any assignment,
sale or transfer of an interest in its Class C Securities to such
Person shall comply in all respects with the terms and conditions
set forth in Section 8.01 of the Security Purchase Agreement.

          8.   Upon such acceptance and recording, from and after
the Effective Date, the Administrative Agent shall make all
payments received by it in respect of the interest assigned
hereby to the Assignee.  The Assignors and the Assignee shall
make all appropriate adjustments in payments under the Security
Purchase Agreement for periods prior to the Purchase Date
directly between themselves.

          9.   This Assignment and Assumption Agreement may be
executed by one or more of the parties on any number of separate
counterparts, and all of said counterparts taken together shall
be deemed to constitute one and the same instrument.

          10.  This Assignment and Assumption Agreement shall be
governed by, and construed in accordance with, the laws of the
State of New York.

        IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Assumption Agreement to be executed by their
respective officers thereunto duly authorized as of the 28th day
of August, 2000.

                         QUINCY CAPITAL CORPORATION,
                         as Conduit Purchaser and Assignor

                         By  /s/ Juliana C. Johnson
                           Name:  Juliana C. Johnson
                           Title:  Vice President

                         FALCON ASSET SECURITIZATION CORPORATION,
                         as Conduit Purchaser and Assignor

                         By  /s/ Andrew Leszczynski
                           Name:  Andrew Leszczynski
                           Title:  Authorized Signatory

                         FOUR WINDS FUNDING CORPORATION,
                         as Conduit Purchaser and Assignor

                         By:  /s/  James T. Ahern
                           Name:  James T. Ahern
                           Title:  Senior Vice President

                         By:  /s/  Carl Kemmerer
                           Name:  Carl Kemmerer
                           Title:  Assistant Treasurer

                         BANK OF AMERICA, N.A.,
                         as Alternate Purchaser and Managing Agent
                         and as Administrative Agent for the
                         Purchasers

                         By  /s/ Elliott Lemon
                           Name:  Elliott Lemon
                           Title:  Vice President

                         BANK ONE, NA (MAIN OFFICE CHICAGO),
                         as Alternate Purchaser and Managing Agent

                         By  /s/ Andrew Leszczynski
                           Name:  Andrew Leszczynski
                           Title:  Authorized Signatory

                         COMMERZBANK AKTIENGESELLSCHAFT, CHICAGO
                         BRANCH, as Alternate Purchaser and
                         Managing Agent

                         By:  /s/  James T. Ahern
                           Name:  James T. Ahern
                           Title:  Senior Vice President

                         By:  /s/  Carl Kemmerer
                           Name:  Carl Kemmerer
                           Title:  Assistant Treasurer

                         FINGERHUT RECEIVABLES, INC.,
                         as Assignee and Transferor

                         By  /s/  Brian M. Szames
                           Name:  Brian M. Szames
                           Title:  President

                         4400 Baker Road
                         Suite F480
                         Minnetonka, MN  55343
                         Attn:  Treasury

                         with a copy to:

                         Federated Department Stores, Inc.
                         7 West Seventh Street
                         Cincinnati, OH 45202
                         Attn:  Treasurer

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