Document:

<PAGE>

                                FIRST SUPPLEMENT
                                       TO
                                MASTER INDENTURE

     This FIRST SUPPLEMENT, dated as of October 17, 2001 (this "Supplement"), is
                                                                ----------
to the Master Indenture, dated as of December 1, 2000 (the "Master Indenture"),
                                                            ----------------
between Spiegel Credit Card Master Note Trust, as Issuer and The Bank of New
York, as Indenture Trustee. Unless otherwise defined herein, capitalized terms
used herein have the meanings ascribed to such terms in the Master Indenture.

     WHEREAS, the Issuer and the Indenture Trustee desire to amend the Master
Indenture in certain respects set forth below;

     NOW THEREFORE, in consideration of the premises and for other good and
valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), the parties hereto agree as follows:

1.   Amendment to Master Indenture. The parties hereto agree that the
     -----------------------------
representations, warranties and covenants set forth in Schedule 1 attached to
                                                       ----------
this Supplement shall be a part of the Master Indenture for all purposes.

2.   Conditions. In accordance with Section 10.1 of the Master Indenture, the
     ----------
foregoing amendment shall become effective as of the date first written above
upon (i) the execution of this Supplement by the Issuer and the Indenture
Trustee and (ii) the satisfaction of the conditions set forth in Section 10.1 of
the Master Indenture.

3.   Miscellaneous. As herein amended, the Master Indenture shall remain in full
     -------------
force and effect and is hereby ratified and confirmed in all respects. This
Supplement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. This Supplement may be executed in
any number of counterparts and by the different parties 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
Supplement.

4.   Governing Law. This 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.

5.   Limitation of Liability. Notwithstanding any other provision herein or
     -----------------------
elsewhere, this 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 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.

<PAGE>

IN WITNESS WHEREOF, the Issuer and Indenture Trustee have caused this Supplement
to be duly executed by their respective officers as of the date first written
above.

                         SPIEGEL CREDIT CARD MASTER NOTE TRUST, as Issuer

                         By:  BANKERS TRUST COMPANY,
                              not in its individual capacity, but solely as
                              Owner Trustee on behalf of the Issuer

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

                         THE BANK OF NEW YORK, as Indenture Trustee

                         By: /s/ Greg Anderson
                             ---------------------------------------
                            Name: Greg Anderson
                                  ----------------------------------
                            Title: Authorized Agent
                                   ---------------------------------

Acknowledged and Accepted:

FIRST CONSUMERS NATIONAL BANK,
as Servicer

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

SPIEGEL CREDIT CORPORATION III,
as Seller

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

                                       2

<PAGE>

                                   Schedule 1

                     PERFECTION REPRESENTATIONS, WARRANTIES
                                  AND COVENANTS

In addition to the representations, warranties and covenants contained in the
Master Indenture, Issuer hereby represents, warrants and covenants to the
Indenture Trustee as follows as of October 17, 2001:

(1)  The Master Indenture creates a valid and continuing security interest (as
     defined in UCC Section 1-102) in the Receivables in favor of the Indenture
     Trustee, which is enforceable with respect to existing Receivables in the
     Accounts on October 17, 2001, and, with respect to Receivables thereafter
     arising in the Accounts at the time such Receivables arise. Such security
     interest is, and in the case of Receivables created after October 17, 2001,
     upon the creation thereof will be, prior to all other Liens (other than
     Liens permitted pursuant to paragraph 3 below).
                                 -----------

(2)  The Receivables constitute "accounts" within the meaning of UCC Section
     9-102.

(3)  Immediately prior to the conveyance of the Receivables pursuant to the
     Master Indenture, Issuer owns and has good and marketable title to, or has
     a valid security interest in, the Receivables free and clear of any Lien,
     claim or encumbrance of any Person; provided that nothing in this paragraph
                                                                       ---------
     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)  Seller 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 Master Indenture in the Receivables arising in the Accounts.

(5)  Other than the transfer of the Receivables to the Indenture Trustee
     pursuant to the Master Indenture, Issuer has not pledged, assigned, sold,
     granted a security interest in, or otherwise conveyed any of the
     Receivables. Issuer has not authorized the filing of and is not aware of
     any financing statements against Seller that include a description of
     collateral covering the Receivables.

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

(7)  Notwithstanding any other provision of the Master 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 all
     Notes have been finally and fully paid. Indenture Trustee shall not,
     without satisfying the Rating Agency Condition, waive a breach of any
     representation or warranty set forth in this Schedule 1. In order to
                                                  ----------
     evidence the interests

                                       3

<PAGE>

     of Issuer and the Indenture Trustee under the Master Indenture, Issuer and
     Indenture Trustee shall take such action, or execute and deliver such
     instruments (other than filing financing statements) 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,
     Issuer's or the Indenture Trust's security interest in the Receivables. The
     Servicer shall, from time to time and within the time limits established by
     law, prepare and present to the Indenture Trustee for the Indenture
     Trustee's authorization and approval all financing statements, amendments,
     continuations or initial financing statements in lieu of a continuation
     statement, or other filings necessary to continue, maintain and perfect as
     a first-priority interest. Indenture Trustee's approval of such filings
     shall authorize the Servicer to file such financing statements under the
     UCC without the signature of Seller or Indenture Trustee where allowed by
     applicable law. Notwithstanding anything else in the Master Indenture to
     the contrary, the Servicer shall not have any authority to file a
     termination, partial termination, release, partial release, or any
     amendment that deletes the name of a debtor or excludes collateral of any
     such financing statements, without the prior written consent of Indenture
     Trustee. The Indenture Trustee may require, prior to authorizing or filing
     any such termination, partial termination, release, partial release or
     amendment, that Servicer provide an Opinion of Counsel that such filings
     are authorized under the Master Indenture.

(8)  Notwithstanding paragraph (7) of this Schedule 1, the Indenture Trustee
     hereby consents to, and no further authorization or approval from Indenture
     Trustee is necessary with respect to, the following filings made in
     connection with the execution of this Supplement:

     New Financing Statements:
     ------------------------

          1.   Financing statements naming Issuer as secured party and the
     Spiegel Master Trust as debtor, in New York and Illinois, covering
     receivables transferred by the Spiegel Master Trust to the Issuer on the
     SMT Termination Date.

          2.   Financing statements naming the Indenture Trustee as secured
     party by the Issuer as debtor, in Illinois and New York, covering
     receivables transferred by the Issuer to the Indenture Trustee.

     Amendment to Financing Statement:
     --------------------------------

          3.   Financing statement naming the Indenture Trustee as secured party
     and the Issuer as debtor, in Illinois and New York, covering receivables
     transferred by the Issuer to the Indenture Trustee.

                                       4<PAGE>

                                 FIRST AMENDMENT
                                       TO
                        TRANSFER AND SERVICING AGREEMENT

     This FIRST AMENDMENT, dated as of October 17, 2001 (this "Amendment"), is
                                                               ---------
to the Transfer and Servicing Agreement, dated as of December 1, 2000 (the
"Transfer and Servicing Agreement"), among Spiegel Credit Corporation III, a
 --------------------------------
Delaware corporation, as Seller, First Consumers National Bank, a national
banking association, as Servicer, and the Spiegel Credit Card Master Note Trust,
as Issuer. Unless otherwise defined herein, capitalized terms used herein have
the meanings ascribed to such terms in the Transfer and Servicing Agreement.

     WHEREAS, the Seller, the Servicer and the Issuer desire to amend the
Transfer and Servicing Agreement in certain respects set forth below;

     NOW THEREFORE, in consideration of the premises and for other good and
valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), the parties hereto agree as follows:

1.   Amendment to Transfer and Servicing Agreement. The parties hereto agree
     ---------------------------------------------
that the representations, warranties and covenants set forth in Schedule 1
                                                                ----------
attached to this Amendment shall be a part of the Transfer and Servicing
Agreement for all purposes.

2.   Conditions. In accordance with Section 9.1 of the Transfer and Servicing
     ----------
Agreement, the foregoing amendment shall become effective as of the date first
written above upon (i) the execution of this Amendment by the Seller, the
Servicer and the Issuer and (ii) the satisfaction of the conditions set forth in
Section 9.1 of the Transfer and Servicing Agreement.

3.   Miscellaneous. As herein amended, the Transfer and Servicing Agreement
     -------------
shall remain in full force and effect and is hereby ratified and confirmed in
all respects. This Amendment shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. This Amendment
may be executed in any number of counterparts and by the different parties 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
Amendment.

4.   Governing Law. This Amendment 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.

<PAGE>

IN WITNESS WHEREOF, the Seller, the Servicer and Issuer have caused this
Amendment to be duly executed by their respective officers as of the date first
written above.

                             SPIEGEL CREDIT CORPORATION III, Seller

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

                             FIRST CONSUMERS NATIONAL BANK

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

                             SPIEGEL CREDIT CARD MASTER NOTE TRUST

                             By: BANKERS TRUST COMPANY,
                                 not in its individual capacity, but solely as
                                 Owner Trustee on behalf of the Issuer

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

ACKNOWLEDGED AND ACCEPTED:

THE BANK OF NEW YORK,
not in its individual capacity, but
solely as Indenture Trustee

By: /s/ Greg Anderson
  -------------------------------------
   Name:  Greg Anderson
       --------------------------------
   Title: Authorized Agent
        -------------------------------

                                       2

<PAGE>

                                   Schedule 1

                     PERFECTION REPRESENTATIONS, WARRANTIES
                                  AND COVENANTS

In addition to the representations, warranties and covenants contained in the
Transfer and Servicing Agreement, Seller hereby represents, warrants and
covenants to the Trust as follows as of October 17, 2001:

(1)  The Transfer and Servicing Agreement creates either (A) a valid transfer to
     the Issuer of all right, title and interest of Seller in, to and under the
     Receivables conveyed to the Issuer pursuant to Section 2.1 of the Transfer
     and Servicing Agreement, and such property will be held by the Issuer free
     and clear of any Lien, except for (w) the interests of the Indenture
     Trustee, the Holders of the Notes and the Enhancement Providers, (x) Liens
     permitted pursuant to paragraph 3 below, or (y) the interests of the Seller
                           -----------
     as holder of the Exchangeable Seller Certificate or (B) a valid and
     continuing security interest (as defined in UCC Section 1-102) in the
     Receivables in favor of the Issuer, which is enforceable with respect to
     existing Receivables in the Accounts on October 17, 2001, and, with respect
     to Receivables thereafter arising in the Accounts at the time such
     Receivables arise. If the Transfer and Servicing Agreement constitutes the
     grant of a security interest to the Issuer in the Receivables, such
     security interest is, and in the case of Receivables created after October
     17, 2001, upon the creation thereof will be, prior to all other Liens
     (other than Liens permitted pursuant to paragraph 3 below).
                                             -----------

(2)  The Receivables constitute "accounts" within the meaning of UCC Section
     9-102.

(3)  Immediately prior to the conveyance of the Receivables pursuant to the
     Transfer and Servicing Agreement, Seller owns and has good and marketable
     title to, or has a valid security interest in, the Receivables free and
     clear of any Lien, claim or encumbrance of any Person; provided that
     nothing in this paragraph 3 shall prevent or be deemed to prohibit Seller
                     -----------
     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 or
     Seller, 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)  Seller 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 Issuer under the
     Transfer and Servicing Agreement in the Receivables arising in the
     Accounts.

(5)  Other than the transfer of the Receivables to the Issuer pursuant to the
     Transfer and Servicing Agreement, Seller has not pledged, assigned, sold,
     granted a security interest in, or otherwise conveyed any of the
     Receivables. Seller has not authorized the filing of and is not aware of
     any financing statements against Seller that include a description of
     collateral covering the Receivables.

                                       3

<PAGE>

(6)  Seller is not aware of any judgment, ERISA or tax lien filings against
     Seller.

(7)  Notwithstanding any other provision of the Transfer and Servicing
     Agreement, the representations and warranties set forth in this Schedule 1
                                                                     ----------
     shall be continuing, and remain in full force and effect, until such time
     as all Notes have been finally and fully paid. Indenture Trustee shall not,
     without satisfying the Rating Agency Condition, waive a breach of any
     representation or warranty set forth in this Schedule 1. In order to
                                                  ----------
     evidence the interests of Seller and the Issuer under the Transfer and
     Servicing Agreement, Seller and Servicer shall take such action, or execute
     and deliver such instruments (other than filing financing statements) 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, Seller's or the Issuer's security interest in the
     Receivables. The Servicer shall, from time to time and within the time
     limits established by law, prepare and present to the Indenture Trustee for
     the Indenture Trustee's authorization and approval all financing
     statements, amendments, continuations or initial financing statements in
     lieu of a continuation statement, or other filings necessary to continue,
     maintain and perfect as a first-priority interest. Indenture Trustee's
     approval of such filings shall authorize the Servicer to file such
     financing statements under the UCC without the signature of Seller or
     Indenture Trustee where allowed by applicable law. Notwithstanding anything
     else in the Transfer and Servicing Agreement to the contrary, the Servicer
     shall not have any authority to file a termination, partial termination,
     release, partial release, or any amendment that deletes the name of a
     debtor or excludes collateral of any such financing statements, without the
     prior written consent of Indenture Trustee. The Indenture Trustee may
     require, prior to authorizing or filing any such termination, partial
     termination, release, partial release or amendment, that Servicer provide
     an Opinion of Counsel that such filings are authorized under the Transfer
     and Servicing Agreement.

(8)  Notwithstanding paragraph (7) of this Schedule 1, the Indenture Trustee
     hereby consents to, and no further authorization or approval from Indenture
     Trustee is necessary with respect to, the following filings made in
     connection with the execution of this Amendment:

     New Financing Statement:
     -----------------------

          1.   Financing statement naming the Issuer as secured party and SCC
     III as debtor, in Delaware, covering receivables transferred by SCC III to
     Issuer pursuant to this Agreement.

     Amendment to Financing Statement:
     --------------------------------

          2.   Financing statement naming the Issuer as secured party and SCC
     III as debtor, in Delaware, covering receivables transferred by SCC III to
     Issuer pursuant to this Agreement.

                                       4

<PAGE>

     Termination Statements:
     ----------------------

          3.   Financing statements naming the trustee of the Spiegel Master
     Trust as secured party and SCC III as debtor, in Delaware and Illinois,
     covering receivables transferred by SCC III to the Spiegel Master Trust
     pursuant to the Amended and Restated Pooling and Servicing Agreement dated
     as of December 13, 1994.

                                       5

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