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                                                                    EXHIBIT 10.2

                               SEVERANCE AGREEMENT

          THIS AGREEMENT is entered into as of the 27th day of November, 2000 by
and between Wallace Computer Services, Inc., a Delaware corporation, and M.
David Jones (the "Executive").

                               W I T N E S S E T H

          WHEREAS, the Executive currently serves as Chairman and Chief
Executive Officer of the Company (as defined in Section 1) and his services and
knowledge are valuable to the Company in connection with the management of one
or more of the Company's principal operating facilities, divisions, departments
or subsidiaries; and

          WHEREAS, the Board (as defined in Section 1) has determined that it is
in the best interests of the Company and its stockholders to secure the
Executive's continued services and to ensure the Executive's continued
dedication and objectivity in the event of any threat or occurrence of, or
negotiation or other action that could lead to, or create the possibility of, a
Change in Control (as defined in Section 1) of the Company, without concern as
to whether the Executive might be hindered or distracted by personal
uncertainties and risks created by any such possible Change in Control, and to
encourage the Executive's full attention and dedication to the Company, the
Board has authorized the Company to enter into this Agreement.

          NOW, THEREFORE, for and in consideration of the premises and the
mutual covenants and agreements herein contained, the Company and the Executive
hereby agree as follows:

          1. Definitions. As used in this Agreement, the following terms shall
have the respective meanings set forth below:

          (a) "Board" means the Board of Directors of the Company.

          (b) "Cause" means:

              (1) a material breach by the Executive of those duties and
       responsibilities of the Executive which do not differ in any material
       respect from the duties and responsibilities of the Executive during the
       90-day period immediately prior to a Change in Control (other than as a
       result of incapacity due to physical or mental illness) which is
       demonstrably willful and deliberate on the Executive's part, which is
       committed in bad faith or without reasonable belief that such breach is
       in the best interests of the Company and which is not remedied in a
       reasonable period of time after receipt of written notice from the
       Company specifying such breach or

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              (2) the commission by the Executive of a felony involving moral
       turpitude.

          (c) "Change in Control" means:

              (1) the acquisition by any individual, entity or group (a
       "Person"), including any "person" within the meaning of Section 13(d)(3)
       or 14(d)(2) of the Exchange Act, of beneficial ownership within the
       meaning of Rule 13d-3 promulgated under the Exchange Act, of 35% or more
       of either (i) the then outstanding shares of common stock of the Company
       (the "Outstanding Common Stock") or (ii) the combined voting power of the
       then outstanding securities of the Company entitled to vote generally in
       the election of directors (the "Outstanding Voting Securities");
       excluding, however, the following: (A) any acquisition directly from the
       Company (excluding any acquisition resulting from the exercise of an
       exercise, conversion or exchange privilege unless the security being so
       exercised, converted or exchanged was acquired directly from the
       Company), (B) any acquisition by the Company, (C) any acquisition by an
       employee benefit plan (or related trust) sponsored or maintained by the
       Company or any corporation controlled by the Company or (D) any
       acquisition by any corporation pursuant to a transaction which complies
       with clauses (i), (ii) and (iii) of subsection (3) of this Section 1(c);
       provided further, that for purposes of clause (B), if any Person (other
       than the Company or any employee benefit plan (or related trust)
       sponsored or maintained by the Company or any corporation controlled by
       the Company) shall become the beneficial owner of 35% or more of the
       Outstanding Common Stock or 35% or more of the Outstanding Voting
       Securities by reason of an acquisition by the Company, and such Person
       shall, after such acquisition by the Company, become the beneficial owner
       of any additional shares of the Outstanding Common Stock or any
       additional Outstanding Voting Securities and such beneficial ownership is
       publicly announced, such additional beneficial ownership shall constitute
       a Change in Control;

              (2) individuals who, as of the date hereof, constitute the Board
       of Directors (the "Incumbent Board") cease for any reason to constitute
       at least a majority of such Board; provided that any individual who
       becomes a director of the Company subsequent to the date hereof whose
       election, or nomination for election by the Company's stockholders, was
       approved by the vote of at least a majority of the directors then
       comprising the Incumbent Board shall be deemed a member of the Incumbent
       Board; and provided further, that any individual who was initially
       elected as a director of the Company as a result of an actual or
       threatened solicitation by a Person for the purpose of opposing a
       solicitation by any other Person with respect to the election or removal
       of directors, or any other actual or threatened solicitation of proxies
       or consents by or on behalf of any Person other than the Board shall not
       be deemed a member of the Incumbent Board;

              (3) the consummation of a reorganization, merger or consolidation
       or sale or other disposition of all or substantially all of the assets of
       the Company (a "Corporate Transaction"); excluding, however, a Corporate
       Transaction pursuant to which (i) all or substantially all of the
       individuals or entities who are the beneficial owners, respectively, of
       the Outstanding Common Stock and the Outstanding Voting

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       Securities immediately prior to such Corporate Transaction will
       beneficially own, directly or indirectly, more than 65% of, respectively,
       the outstanding shares of common stock, and the combined voting power of
       the outstanding securities entitled to vote generally in the election of
       directors, as the case may be, of the corporation resulting from such
       Corporate Transaction (including, without limitation, a corporation which
       as a result of such transaction owns the Company or all or substantially
       all of the Company's assets either directly or indirectly) in
       substantially the same proportions relative to each other as their
       ownership, immediately prior to such Corporate Transaction, of the
       Outstanding Common Stock and the Outstanding Voting Securities, as the
       case may be, (ii) no Person (other than: the Company; any employee
       benefit plan (or related trust) sponsored or maintained by the Company or
       any corporation controlled by the Company; the corporation resulting from
       such Corporate Transaction; and any Person which beneficially owned,
       immediately prior to such Corporate Transaction, directly or indirectly,
       35% or more of the Outstanding Common Stock or the Outstanding Voting
       Securities, as the case may be) will beneficially own, directly or
       indirectly, 35% or more of, respectively, the outstanding shares of
       common stock of the corporation resulting from such Corporate Transaction
       or the combined voting power of the outstanding securities of such
       corporation entitled to vote generally in the election of directors and
       (iii) individuals who were members of the Incumbent Board will constitute
       at least a majority of the members of the board of directors of the
       corporation resulting from such Corporate Transaction; or

              (4) the consummation of a plan of complete liquidation or
       dissolution of the Company.

          (d) "Company" means Wallace Computer Services, Inc., a Delaware
corporation.

          (e) "Date of Termination" means:

              (1) the effective date on which the Executive's employment by the
       Company terminates as specified in a prior written notice by the Company
       or the Executive, as the case may be, to the other, delivered pursuant to
       Section 11 or

              (2) if the Executive's employment by the Company terminates by
       reason of death, the date of death of the Executive.

          (f) "Good Reason" means, without the Executive's express written
consent, the occurrence of any of the following events after a Change in
Control:

              (1) the assignment to the Executive of any duties inconsistent in
       any material respect with the Executive's position(s), duties,
       responsibilities or status with the Company immediately prior to such
       Change in Control, or a change in the Executive's reporting
       responsibilities, titles or offices with the Company as in effect
       immediately prior to such Change in Control;

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              (2) a reduction by the Company in the Executive's rate of annual
       base salary or bonus opportunity as in effect immediately prior to such
       Change in Control or as the same may be increased from time to time
       thereafter;

              (3) any requirement of the Company that the Executive be based
       more than 50 miles from the facility where the Executive is located at
       the time of the Change in Control;

              (4) the failure of the Company to (i) continue in effect any
       employee benefit plan or compensation plan in which the Executive is
       participating immediately prior to such Change in Control, unless the
       Executive is permitted to participate in other plans providing the
       Executive with substantially comparable benefits, or the taking of any
       action by the Company which would adversely affect the Executive's
       participation in or materially reduce the Executive's benefits under any
       such plan and (ii) provide the Executive and the Executive's dependents
       welfare benefits (including, without limitation, medical, prescription,
       dental, disability, salary continuance, employee life, group life,
       accidental death and travel accident insurance plans and programs) in
       accordance with the most favorable plans, practices, programs and
       policies of the Company and its affiliated companies; or

              (5) the failure of the Company to obtain the assumption agreement
       from any successor as contemplated in Section 10(b).

          For purposes of this Agreement, any good faith determination of Good
Reason made by the Executive shall be conclusive; provided, however, that an
isolated, insubstantial and inadvertent action taken in good faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive shall not constitute Good Reason.

          (g) "Nonqualifying Termination" means a termination of the Executive's
employment:

              (1) by the Company for Cause,

              (2) by the Executive for any reason other than a Good Reason,

              (3) as a result of the Executive's death or

              (4) by the Company due to the Executive's absence from his duties
       with the Company on a full-time basis for at least 180 consecutive days
       as a result of the Executive's incapacity due to physical or mental
       illness.

Notwithstanding anything contained in this Section 1(g), a termination of the
Executive's employment for any reason whatsoever during the "Window Period"
(hereinafter defined) shall not constitute a Nonqualifying Termination.

          (h) "Termination Period" means the period of time beginning with a
Change in Control and ending on the earlier to occur of:

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              (1) two years following such Change in Control and

              (2) the Executive's death.

          (i) "Window Period" means the 30-day period commencing one year after
the date of a Change in Control.

          2.  Obligations of the Executive. The Executive agrees that in the
event any person or group attempts a Change in Control, he shall not voluntarily
leave the employ of the Company without Good Reason

          (a) until such attempted Change in Control terminates or

          (b) if a Change in Control shall occur, until 90 days following such
Change in Control. For purposes of clause (a) of the preceding sentence, Good
Reason shall be determined as if a Change in Control had occurred when such
attempted Change in Control became known to the Board.

          3.  Payments Upon Termination of Employment.

          (a) If during the Termination Period the employment of the Executive
shall terminate, other than by reason of a Nonqualifying Termination, then the
Company shall pay to the Executive (or the Executive's beneficiary or estate)
within 30 days following the Date of Termination, as compensation for services
rendered to the Company:

              (1) a cash amount equal to the sum of (i) the Executive's full
       annual base salary from the Company and its affiliated companies through
       the Date of Termination, to the extent not theretofore paid, (ii) the
       Executive's then current target annual bonus, multiplied by a fraction,
       the numerator of which is the number of days in the fiscal year in which
       the Change in Control occurs through the Date of Termination and the
       denominator of which is 365 or 366, as applicable, and (iii) any
       compensation previously deferred by the Executive (together with any
       interest and earnings thereon) and any accrued vacation pay, in each case
       to the extent not theretofore paid; plus

              (2) a lump-sum cash amount (subject to any applicable payroll or
       other taxes required to be withheld pursuant to Section 5) in an amount
       equal to the sum of (i) two (2) times the Executive's highest annual base
       salary from the Company and its affiliated companies in effect during the
       12-month period prior to the Date of Termination and (ii) two (2) times
       the Executive's target annual bonus in effect immediately prior to the
       Change in Control or immediately prior to the Date of Termination,
       whichever is higher; provided, however, that any amount paid pursuant to
       this Section 3(a)(2) shall be paid in lieu of any other amount of
       severance relating to salary or bonus continuation to be received by the
       Executive upon termination of employment of the Executive under any
       severance plan, policy or arrangement of the Company.

              (3) For the period commending on the Date of Termination and
       ending on the earlier of (i) the expiration of the three year period
       following the Date of

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       Termination and (ii) the date on which the Executive becomes eligible to
       participate in and receive medical benefits under a plan or arrangement
       sponsored by another employer, the Company shall continue the Executive's
       medical coverage, upon the same terms and otherwise to the same extent as
       such coverage shall have been in effect immediately prior to the Date of
       Termination or, if more favorable to the Executive, as provided generally
       with respect to other peer executives of the Company and its affiliated
       companies, and the Company and the Executive shall share the costs of the
       continuation of such medical coverage in the same proportion as such
       costs were shared immediately prior to the Date of Termination.

          (b) If during the Termination Period the employment of the Executive
shall terminate by reason of a Nonqualifying Termination, then the Company shall
pay to the Executive within 30 days following the Date of Termination, all
payments and benefits to which the Executive is entitled pursuant to the terms
of the Employment Agreement between the Company and the Executive, dated as of
November 27, 2000, as amended from time to time, and any compensation previously
deferred by the Executive (together with any interest and earnings thereon) and
any accrued vacation pay, in each case to the extent not theretofore paid.

          4.  Certain Additional Payments by the Company.

          (a) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment or distribution by the Company or
its affiliated companies to or for the benefit of the Executive (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise, but determined without regard to any additional payments required
under this Section 4) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including, without limitation, any income taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed upon
the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments.

          (b) Subject to the provisions of Section 4(c), all determinations
required to be made under this Section 4, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by the Company's
public accounting firm (the "Accounting Firm") which shall provide detailed
supporting calculations both to the Company and the Executive within 15 business
days of the receipt of notice from the Executive that there has been a Payment,
or such earlier time as is requested by the Company. In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change in Control, the Executive shall appoint another
nationally recognized public accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Section 4, shall be paid by the Company to the Executive within five days of the
receipt of the Accounting

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Firm's determination. If the Accounting Firm determines that no Excise Tax is
payable by the Executive, it shall furnish the Executive with a written opinion
that failure to report the Excise Tax on the Executive's applicable federal
income tax return would not result in the imposition of a negligence or similar
penalty. Any determination by the Accounting Firm shall be binding upon the
Company and the Executive. As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Company should have been made ("Underpayment"), consistent
with the calculations required to be made hereunder. In the event that the
Company exhausts its remedies pursuant to Section 4(c) and the Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

          (c) The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than 10 business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which the Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such
claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall:

              (1) give the Company any information reasonably requested by the
       Company relating to such claim,

              (2) take such action in connection with contesting such claim as
       the Company shall reasonably request in writing from time to time,
       including, without limitation, accepting legal representation with
       respect to such claim by an attorney reasonably selected by the Company,

              (3) cooperate with the Company in good faith in order to contest
       effectively such claim, and

              (4) permit the Company to participate in any proceedings relating
       to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 4(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest

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to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided further, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and provided further, that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

          (d) If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 4(c), the Executive becomes entitled to receive,
and receives, any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 4(c))
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after the
receipt by the Executive of an amount advanced by the Company pursuant to
Section 4(c), a determination is made that the Executive shall not be entitled
to any refund with respect to such claim and the Company does not notify the
Executive in writing of its intent to contest such denial of refund prior to the
expiration of 30 days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

          5.  Withholding Taxes. The Company may withhold from all payments due
to the Executive (or his beneficiary or estate) hereunder all taxes which, by
applicable federal, state, local or other law, the Company is required to
withhold therefrom.

          6.  Reimbursement of Expenses. If any contest or dispute shall arise
under this Agreement involving termination of the Executive's employment with
the Company or involving the failure or refusal of the Company to perform fully
in accordance with the terms hereof, the Company shall reimburse the Executive,
on a current basis, for all legal fees and expenses, if any, incurred by the
Executive in connection with such contest or dispute, together with interest
thereon at a rate equal to the prime rate, as published under "Money Rates" in
The Wall Street Journal from time to time, but in no event higher than the
maximum legal rate permissible under applicable law, such interest to accrue
from the date the Company receives the Executive's statement for such fees and
expenses through the date of payment thereof; provided, however, that in the
event the resolution of any such contest or dispute includes a finding denying,
in total, the Executive's claims in such contest or dispute, the Executive shall
be required to reimburse the Company, over a period of 12 months from the date
of such resolution, for all sums advanced to the Executive pursuant to this
Section 6.

          7.  Operative Event. Notwithstanding any provision herein to the
contrary, no amounts shall be payable hereunder unless and until there is a
Change in Control at a time when the Executive is employed by the Company.

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          8.  Termination of Agreement. This Agreement shall be effective on the
date hereof; provided, however, that this Agreement shall terminate in any event
upon the earlier to occur of (i) termination of the Executive's employment with
the Company prior to a Change in Control and (ii) the Executive's death.

          9.  Scope of Agreement. Nothing in this Agreement shall be deemed to
entitle the Executive to continued employment with the Company or its
subsidiaries and, if the Executive's employment with the Company shall terminate
prior to a Change in Control, then the Executive shall have no further rights
under this Agreement; provided, however, that any termination of the Executive's
employment following a Change in Control shall be subject to all of the
provisions of this Agreement.

          10. Successors; Binding Agreement.

          (a) This Agreement shall not be terminated by any merger or
consolidation of the Company whereby the Company is or is not the surviving or
resulting corporation or as a result of any transfer of all or substantially all
of the assets of the Company. In the event of any such merger, consolidation or
transfer of assets, the provisions of this Agreement shall be binding upon the
surviving or resulting corporation or the person or entity to which such assets
are transferred.

          (b) The Company agrees that concurrently with any merger,
consolidation or transfer of assets referred to in Section 10(a), it will cause
any successor or transferee unconditionally to assume, by written instrument
delivered to the Executive (or his beneficiary or estate), all of the
obligations of the Company hereunder. Failure of the Company to obtain such
assumption prior to the effectiveness of any such merger, consolidation or
transfer of assets shall be a breach of this Agreement and shall entitle the
Executive to compensation and other benefits from the Company in the same amount
and on the same terms as the Executive would be entitled hereunder if the
Executive's employment were terminated following a Change in Control other than
by reason of a Nonqualifying Termination. For purposes of implementing the
foregoing, the date on which any such merger, consolidation or transfer becomes
effective shall be deemed the Date of Termination.

          (c) This Agreement shall inure to the benefit of and be enforceable by
the Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive shall
die while any amounts would be payable to the Executive hereunder had the
Executive continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to such person or
persons appointed in writing by the Executive to receive such amounts or, if no
person is so appointed, to the Executive's estate.

          11. Notices.

          (a) For purposes of this Agreement, all notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered or five days after deposit in the
United States mail, certified and return receipt requested, postage prepaid,
addressed

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              (1) if to the Executive, to M. David Jones, 520 Dekemont Lane,
       Brentwood, Tennessee 37027, and if to the Company, to Wallace Computer
       Services, Inc., 2275 Cabot Drive, Lisle, Illinois 60532, attention
       General Counsel, or

              (2) to such other address as either party may have furnished to
       the other in writing in accordance herewith, except that notices of
       change of address shall be effective only upon receipt.

          (b) A written notice of the Executive's Date of Termination by the
Company or the Executive, as the case may be, to the other, shall (i) indicate
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) specify the termination date (which date
shall be not less than three days after the giving of such notice by the
Executive of termination during the Window Period and which date shall be not
less than 15 days after the giving of such notice under other circumstances).
The failure by the Executive or the Company to set forth in such notice any fact
or circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive's or the Company's rights hereunder.

          12. Full Settlement; Resolution of Disputes.

          (a) The Company's obligation to make any payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others. In no
event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and such amounts shall not be reduced
whether or not the Executive obtains other employment.

          (b) If there shall be any dispute between the Company and the
Executive in the event of any termination of the Executive's employment, then,
unless and until there is a final, nonappealable judgment by a court of
competent jurisdiction declaring that such termination was for Cause, that the
determination by the Executive of the existence of Good Reason was not made in
good faith, or that the Company is not otherwise obligated to pay any amount or
provide any benefit to the Executive and his dependents or other beneficiaries,
as the case may be, under Sections 3(a) and 3(b), the Company shall pay all
amounts, and provide all benefits, to the Executive and his dependents or other
beneficiaries, as the case may be, that the Company would be required to pay or
provide pursuant to Sections 3(a) and 3(b) as though such termination were by
the Company without Cause or by the Executive with Good Reason; provided,
however, that the Company shall not be required to pay any disputed amounts
pursuant to this Section 12(b) except upon receipt of an undertaking by or on
behalf of the Executive to repay all such amounts to which the Executive is
ultimately adjudged by such court not to be entitled.

          13. Employment with Subsidiaries. Employment with the Company for
purposes of this Agreement shall include employment with any corporation or
other entity in

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which the Company has a direct or indirect ownership interest of 50% or more of
the total combined voting power of the then outstanding securities of such
corporation or other entity entitled to vote generally in the election of
directors.

          14. Governing Law; Validity. The interpretation, construction and
performance of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Illinois without regard to the
principle of conflicts of laws. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which other provisions shall remain in
full force and effect.

          15. Counterparts. This Agreement may be executed in two counterparts,
each of which shall be deemed to be an original and both of which together shall
constitute one and the same instrument.

          16. Miscellaneous. No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and signed by
the Executive and by a duly authorized officer of the Company. No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. Failure by the
Executive or the Company to insist upon strict compliance with any provision of
this Agreement or to assert any right the Executive or the Company may have
hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason, shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement. Except as
otherwise expressly set forth in this Agreement, the rights of, and benefits
payable to, the Executive, his estate or his beneficiaries pursuant to this
Agreement are in addition to any rights of, or benefits payable to, the
Executive, his estate or his beneficiaries under any other employee benefit plan
or compensation program of the Company.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by a duly authorized officer of the Company and the Executive has
executed this Agreement as of the day and year first above written.

                                          WALLACE COMPUTER SERVICES, INC.

                                          By:
                                             ---------------------------

                                          ------------------------------
                                          M. DAVID JONES

                                      -11-<PAGE>   1
                                                                     EXHIBIT 4.1

                                  DISCOVER BANK

                      Master Servicer, Servicer and Seller

                                       and

                         U.S. BANK NATIONAL ASSOCIATION

                                     Trustee

                       on behalf of the Certificateholders

                                   ----------

                                SERIES SUPPLEMENT

                           Dated as of March 15, 2001

                                       to

                         POOLING AND SERVICING AGREEMENT

                           Dated as of October 1, 1993

                                   ----------

                        $750,000,000 Class A Certificates

                        $39,474,000 Class B Certificates

                          DISCOVER CARD MASTER TRUST I

                         SERIES 2001 - 3  CERTIFICATES

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                         Page
                                                                                         ----
<S>                                                                                      <C>
SERIES TERM SHEET..........................................................................1
ANNEX......................................................................................1
SECTION 1.       Definitions...............................................................1
SECTION 2.       Subordination............................................................26
SECTION 3.       Representations and Warranties of the Sellers............................26
SECTION 4.       Representations and Warranties of Discover Bank as Master Servicer
                 and Servicer.............................................................26
SECTION 5.       Representations and Warranties of Other Servicers........................27
SECTION 6.       Representations and Warranties of the Trustee............................27
SECTION 7.       Authentication of Certificates...........................................27
SECTION 8.       Establishment and Administration of Investor Accounts and the Credit
                 Enhancement Account......................................................27
SECTION 9.       Allocations of Collections...............................................32
SECTION 10.      Payments.................................................................44
SECTION 11.      Credit Enhancement.......................................................48
SECTION 12.      Alternative Credit Support Election......................................49
SECTION 13.      Calculation of Investor Losses...........................................50
SECTION 14.      Servicing Compensation...................................................51
SECTION 15.      Class Interest Rate Caps.................................................51
SECTION 16.      Class Interest Rate Swaps................................................53
SECTION 17.      Investor Certificateholders' Monthly Statement...........................53
SECTION 18.      Master Servicer's Monthly Certificate....................................53
SECTION 19.      Notices..................................................................53
SECTION 20.      Additional Amortization Events...........................................53
SECTION 21.      Early Accumulation Events; Additional Amortization Events................54
SECTION 22.      Purchase of Investor Certificates and Series Termination.................55
SECTION 23.      Variable Accumulation Period.............................................56
SECTION 24.      Optional Accumulation Period Commencement................................56
SECTION 25.      Series Yield Factor......................................................56
SECTION 26.      Ratification of Pooling and Servicing Agreement..........................57
SECTION 27.      Counterparts.............................................................57
SECTION 28.      Governing Law............................................................57
SECTION 29.      Intention of Parties.....................................................57
</TABLE>

                                       i

<PAGE>   3

                                    EXHIBITS

EXHIBIT A:       Form of Investors Certificates

EXHIBIT B:       Form of Certificateholders' Monthly Statement

EXHIBIT C:       Form of Master Servicer's Monthly Certificate

                                       ii

<PAGE>   4

                          DISCOVER CARD MASTER TRUST I
                          SERIES 2001 - 3 CERTIFICATES

          This Series of Master Trust Certificates is established pursuant to
Section 6.06 of that certain Pooling and Servicing Agreement, dated as of
October 1, 1993, as amended, by and between DISCOVER BANK (formerly Greenwood
Trust Company), a Delaware banking corporation ("Discover Bank"), as Master
Servicer, Servicer and Seller and U.S. BANK NATIONAL ASSOCIATION (formerly First
Bank National Association, successor trustee to Bank of America Illinois,
formerly Continental Bank, National Association) (the "Trustee"), as Trustee
(the "Pooling and Servicing Agreement"). This SERIES TERM SHEET and the ANNEX
attached hereto, by and among the Master Servicer, the Servicers, the Sellers
and the Trustee, constitute the SERIES SUPPLEMENT (the "Series Supplement"). The
Pooling and Servicing Agreement and this Series Supplement together establish
the Series of Master Trust Certificates to be known as the DISCOVER CARD MASTER
TRUST I, SERIES 2001 - 3 CERTIFICATES.

                                SERIES TERM SHEET

Date of Series Term Sheet                   March 15, 2001.

Group                                       One.

Series Initial Investor Interest            $789,474,000

Class Initial Investor Interest of          Class A - $750,000,000.
each Class of Investor Certificates
                                            Class B - $39,474,000.

Class A Expected Final Payment Date         The Distribution Date in March 2006.

Class B Expected Final Payment Date         The Distribution Date in April 2006.

Type of Structure                           Bullet Maturity.

Certificate Rates                           Class A - LIBOR plus 0.15% per
                                            annum, calculated on the basis of
                                            the actual number of days elapsed
                                            and a 360-day year.

                                            Class B - LIBOR plus 0.42% per
                                            annum, calculated on the basis of
                                            the actual number of days elapsed
                                            and a 360-day year.

Monthly Amortization Rate                   Not applicable.

Prepayment Calculation Table                Not applicable.

Prepayment Determination Date               Not applicable.

Class Cap Rate                              Not applicable.

                                        1
<PAGE>   5

Class Maximum Rate                          Not applicable.

Class Interest Rate Swap                    Not applicable.

Interest Rate Swap Counterparty             Not applicable.

Swap Trust Rate                             Not applicable.

Swap Counterparty Rate                      Not applicable.

Monthly Swap Deposit                        Not applicable.

LIBOR Determination Date                    The second LIBOR Business Day
                                            immediately preceding the
                                            commencement of an Interest Accrual
                                            Period.

Series Yield Factor                         Initially zero, but may be increased
                                            pursuant to Section 25.

Series Cut-Off Date                         March 1, 2001.

Series Closing Date                         March 15, 2001.

Date from which Interest for first          Series Closing Date.
Interest Payment Date Shall Accrue

Distribution Dates                          The 15th day of each calendar month
                                            (or, if such day is not a Business
                                            Day, the next succeeding Business
                                            Day), commencing in April 2001.

Interest Payment Dates                      The 15th day of each calendar month
                                            (or, if such day is not a Business
                                            Day, the next succeeding Business
                                            Day), commencing in April 2001.

Statement Dates                             Each Distribution Date, commencing
                                            in April 2001.

Principal Payment Date                      Not applicable.

Interest Calculation Dates                  Not applicable.

Accumulation Commencement Date              Not applicable.

Accumulation Period                         Unless an Amortization Event shall
                                            have occurred prior thereto, the
                                            period commencing on the Principal
                                            Commencement Date and ending on the
                                            earliest to occur of (x) the payment
                                            in full of the Series Invested
                                            Amount, (y) the Amortization
                                            Commencement Date, and (z) the
                                            Series Termination Date.

                                       2
<PAGE>   6

Accumulation Amount                         (a) Through the Class A Expected
                                            Final Payment Date, (i) $
                                            62,500,000.00 or (ii) if the Master
                                            Servicer elects to delay
                                            commencement of the Accumulation
                                            Period in accordance with Section
                                            24, the Class A Initial Investor
                                            Interest divided by the number of
                                            Distribution Dates from the
                                            commencement of the Accumulation
                                            Period through and including the
                                            Class A Expected Final Payment Date,
                                            and (b) thereafter, $39,474,000.00.

Principal Commencement Date                 The first day of the Due Period
                                            related to the April 2005
                                            Distribution Date (or such later
                                            Distribution Date as the Master
                                            Servicer may elect in accordance
                                            with Section 23).

Revolving Period                            From the Series Cut-Off Date to but
                                            excluding the earlier to occur of
                                            (i) the Principal Commencement Date,
                                            and (ii) the Amortization
                                            Commencement Date.

Controlled Liquidation Period               Not applicable.

Early Accumulation Period                   Not applicable.

Type of Credit Enhancement                  Cash collateral account.

Stated Shared Credit Enhancement Amount     There shall be no Shared Credit
                                            Enhancement.

Stated Class A Credit Enhancement Amount    There shall be no Class A Cash
                                            Collateral Credit Enhancement.

Stated Class B Credit Enhancement Amount    $59,210,550

Credit Enhancement Provider                 Collectively, the one or more
                                            lenders making a loan in order to
                                            provide the initial funds on deposit
                                            in the Credit Enhancement Account,
                                            or any successor provider of the
                                            Credit Enhancement.

Maximum Shared Credit Enhancement Amount    There shall be no Shared Credit
                                            Enhancement.

Maximum Class A Credit Enhancement Amount   There shall be no Class A Cash
                                            Collateral Credit Enhancement.

                                       3
<PAGE>   7

Maximum Class B Credit Enhancement Amount   On any Distribution Date (a) prior
                                            to the making of an Effective
                                            Alternative Credit Support Election,
                                            the greater of (i) $7,894,740 and
                                            (ii) (x) if a Supplemental Credit
                                            Enhancement Event has not occurred,
                                            an amount equal to 7.5% of the
                                            Series Initial Investor Interest, or
                                            (y) if a Supplemental Credit
                                            Enhancement Event has occurred, an
                                            amount equal to 8.0% of the Series
                                            Initial Investor Interest, (b)
                                            subsequent to the making of an
                                            Effective Alternative Credit Support
                                            Election, the greater of (i)
                                            $7,894,740 and (ii) an amount equal
                                            to 12.5% of the Series Initial
                                            Investor Interest, provided,
                                            however, that if an Amortization
                                            Event with respect to the Series
                                            established hereby occurs, the
                                            Maximum Class B Credit Enhancement
                                            Amount for each Distribution Date
                                            thereafter shall equal the Maximum
                                            Class B Credit Enhancement Amount
                                            for the Distribution Date
                                            immediately preceding the occurrence
                                            of the Amortization Event; and
                                            provided, further, that if a Credit
                                            Enhancement Drawing has been made,
                                            until such time as the Available
                                            Class B Credit Enhancement Amount
                                            has been reinstated in an amount at
                                            least equal to the amount of such
                                            Credit Enhancement Drawing, the
                                            Maximum Class B Credit Enhancement
                                            Amount shall be the Maximum Class B
                                            Credit Enhancement Amount as of the
                                            date of such Credit Enhancement
                                            Drawing.

Total Maximum Credit Enhancement Amount     On any Distribution Date, the
                                            Maximum Class B Credit Enhancement
                                            Amount for such Distribution Date.

Additional Credit Support Amount            The lesser of (x)(i) $39,473,700
                                            prior to the occurrence of a
                                            Supplemental Credit Enhancement
                                            Event or (ii) $35,526,330 following
                                            the occurrence of a Supplemental
                                            Credit Enhancement Event and (y) the
                                            difference between the Maximum Class
                                            B Credit Enhancement Amount (after
                                            giving effect to an Alternative
                                            Credit Support Election) and the
                                            Available Class B Credit Enhancement
                                            Amount (immediately before giving
                                            effect to the Alternative Credit
                                            Support Election).

Supplemental Credit Enhancement Amount      The lesser of (x)(i) $3,947,370
                                            prior to the occurrence of an
                                            Alternative Credit Support Election
                                            or (ii) zero following the
                                            occurrence of an Alternative Credit
                                            Support Election and (y) the
                                            difference between the Maximum Class
                                            B Credit Enhancement Amount (after
                                            giving effect to the occurrence of a
                                            Supplemental Credit Enhancement
                                            Event) and the Available Class B
                                            Credit Enhancement Amount
                                            (immediately before giving effect to
                                            the occurrence of a Supplemental
                                            Credit Enhancement Event).

                                       4
<PAGE>   8

Initial Subordinated Amount                 $98,684,250.

Additional Subordinated Amount              $39,473,700 prior to the occurrence
                                            of a Supplemental Credit Enhancement
                                            Event and $35,526,330 following the
                                            occurrence of a Supplemental Credit
                                            Enhancement Event.

Supplemental Subordinated Amount            $3,947,370 prior to the
                                            effectiveness of an Alternative
                                            Credit Support Election and zero
                                            following the effectiveness of an
                                            Alternative Credit Support Election.

Series Buffer Amount                        Zero.

Group Buffer Amount                         Zero.

Investor Servicing Fee Percentage           2.0% per annum calculated on the
                                            basis of a 360-day year of twelve
                                            30-day months.

Supplemental Servicing Fee Percentage       Zero.

Amount of Additional Funds                  Initially, zero.

Eligible for Reallocations to and from      Yes.
Other Series in Group

Series Termination Date                     The first Business Day following the
                                            Distribution Date in September 2008.

Estimated Investment Shortfall              On any date of determination, the
                                            positive difference, if any, between
                                            (i) the Certificate Rate for the
                                            Class for whose benefit the amounts
                                            on deposit in the Series Principal
                                            Funding Account are held as of such
                                            date of determination and (ii) the
                                            weighted average yield (expressed as
                                            a Money Market Yield) on the
                                            investments in the Series Principal
                                            Funding Account as of such date of
                                            determination.

                                       5
<PAGE>   9

Estimated Yield                             On any date of determination, the
                                            Portfolio Yield for the immediately
                                            preceding Due Period less 2.00%.

Classes, if any, subject to Regulation S    Not applicable.
restrictions

Classes, if any, subject to ERISA           Class B.
restrictions

Bearer Certificates                         Not applicable.

Registered Certificates                     Class A and Class B Certificates.

Class A Certificate                         Each certificate executed by the
                                            Sellers and authenticated by or on
                                            behalf of the Trustee, substantially
                                            in the form of Exhibit A-1.

Class B Certificate                         Each certificate executed by the
                                            Sellers and authenticated by or on
                                            behalf of the Trustee, substantially
                                            in the form of Exhibit A-2.

Principal Paying Agent                      Class A - Not applicable.

                                            Class B - Not applicable.

Paying Agents                               Class A and Class B - the Corporate
                                            Trust Office of the Trustee.

                                       6
<PAGE>   10

     IN WITNESS WHEREOF, the Sellers, the Master Servicer, the Servicers and the
Trustee have caused this Series Supplement to be duly executed by their
respective officers thereunto duly authorized as of the date and year first
above written.

                                   DISCOVER BANK,
                                     as Seller, Master Servicer and Servicer

                                   /s/ Michael F. Rickert
                                   ---------------------------------------------
                                   Michael F. Rickert
                                   Vice President, Chief Accounting Officer and
                                   Treasurer

                                   U.S. BANK NATIONAL ASSOCIATION,
                                     as Trustee

                                   /s/ Patricia M. Child
                                   ---------------------------------------------
                                   Patricia M. Child
                                   Vice President

<PAGE>   11

                                      ANNEX

     In consideration of the mutual agreements herein contained, each party
agrees as follows for the benefit of the other parties and for the benefit of
the Certificateholders:

     SECTION 1. Definitions

     (a) Capitalized terms not otherwise defined in this Series Supplement
(including the Series Term Sheet) shall have the meanings ascribed to them in
the Pooling and Servicing Agreement. Capitalized terms that refer to a Series or
a Class refer to the Series established hereby or a Class of the Series
established hereby, as applicable, unless the context otherwise clearly
requires.

     (b) The following terms have the definitions set forth below with respect
to the Series established hereby, unless the context otherwise clearly requires:

     "Accumulation Amount," if applicable, shall have the meaning set forth in
the Series Term Sheet; provided, however, that such amount may be adjusted
pursuant to Section 23 or 24.

     "Accumulation Commencement Date," if applicable, shall have the meaning set
forth in the Series Term Sheet.

     "Accumulation Period," if applicable, shall have the meaning set forth in
the Series Term Sheet.

     "Additional Credit Support Amount" shall have the meaning set forth in the
Series Term Sheet.

     "Additional Subordinated Amount" shall have the meaning set forth in the
Series Term Sheet.

     "Alternative Credit Support Election" shall mean an election made by the
Sellers pursuant to Section 12.

     "Amortization Commencement Date" shall mean the date on which an
Amortization Event is deemed to occur pursuant to Section 20 hereof.

     "Amortization Event" shall mean any event specified in Section 9.01 of the
Pooling and Servicing Agreement or in Section 20 hereof.

     "Amortization Period" shall mean the period from, and including, the
Amortization Commencement Date to, and including, the earlier of (i) the date of
the final distribution to Investor Certificateholders of the Series established
hereby and (ii) the Series Termination Date. The first Distribution Date of the
Amortization Period shall be the Distribution Date in the calendar month
following the Amortization Commencement Date.

<PAGE>   12

     "Available Class A Credit Enhancement Amount," if applicable, shall have
the meaning set forth in the Series Term Sheet.

     "Available Class B Credit Enhancement Amount" shall mean, with respect to
the first Distribution Date, the Stated Class B Credit Enhancement Amount, and,
thereafter, shall mean the amount available to be drawn under the Credit
Enhancement with respect to the Available Class B Credit Enhancement Amount from
time to time, which on any date of determination shall be equal to the Available
Class B Credit Enhancement Amount for the immediately preceding Distribution
Date minus the amount of all Credit Enhancement Drawings with respect to the
Available Class B Credit Enhancement Amount on or since such immediately
preceding Distribution Date, plus the amount of all payments made to the Trustee
as administrator of the Credit Enhancement with respect to the Available Class B
Credit Enhancement Amount pursuant to Section 9 plus, following an Effective
Alternative Credit Support Election, the Additional Credit Support Amount and,
plus, following a Supplemental Credit Enhancement Event, the Supplemental Credit
Enhancement Amount; provided, however, that from and after the Fully Funded
Date, if any, the Available Class B Credit Enhancement Amount shall equal zero.

     "Available Shared Credit Enhancement Amount," if applicable, shall mean,
with respect to the first Distribution Date, the Stated Shared Credit
Enhancement Amount, and, thereafter, shall mean the amount available to be drawn
under the Credit Enhancement with respect to the Available Shared Credit
Enhancement Amount from time to time, which on any date of determination shall
be equal to the Available Shared Credit Enhancement Amount for the immediately
preceding Distribution Date minus the amount of all Credit Enhancement Drawings
with respect to the Available Shared Credit Enhancement Amount on or since such
immediately preceding Distribution Date, and plus the amounts of all payments
made to the Trustee as administrator of the Credit Enhancement with respect to
the Available Shared Credit Enhancement Amount pursuant to Section 9.

          "Available Subordinated Amount," if there is a Subordinate Class with
respect to Class A, shall mean, on a Distribution Date, the sum of

               (a) (i) with respect to the first Distribution Date, the Initial
     Subordinated Amount or (ii) with respect to any other Distribution Date,
     the Available Subordinated Amount after giving effect to all adjustments on
     the prior Distribution Date; and

               (b) the amount of Series Excess Servicing;

as such amount may be (x) reduced pursuant to the provisions of Section 9 to
take into account (i) the amount of Class A and Class B Excess Servicing used to
reimburse the Class A Cumulative Investor Charged-Off Amount, (ii) the amount of
Class B Excess Servicing used to reduce the Class A Required Amount Shortfall,
(iii) the amount of the Class B Subordinated Payment and (iv) the amount of any
reduction in the Class B Investor Interest resulting from the reimbursement of
the Class A Cumulative Investor Charged-Off Amount, in each case for such
Distribution Date, and (y) increased pursuant to the provisions of Section 9 to
take into account

                                       2
<PAGE>   13

the application of amounts on deposit in the Group Finance Charge Collections
Reallocation Account (i) to reduce the Class B Required Amount Shortfall, (ii)
to reduce the Class B Cumulative Investor Charged-Off Amount and (iii) to
increase the Available Class B Credit Enhancement Amount, in each case for such
Distribution Date; provided, however, that from and after the Fully Funded Date,
if any, the Available Subordinated Amount will equal zero.

Upon the occurrence of a Supplemental Credit Enhancement Event, the Available
Subordinated Amount will be increased by the Supplemental Subordinated Amount.
In addition, on the first Distribution Date following an Effective Alternative
Credit Support Election, the Available Subordinated Amount shall be increased by
the Additional Subordinated Amount. In no event, however, shall the Available
Subordinated Amount exceed (i) through the last Distribution Date preceding an
Effective Alternative Credit Support Election, the Initial Subordinated Amount
plus the Supplemental Subordinated Amount and (ii) thereafter, the sum of the
Initial Subordinated Amount, the Supplemental Subordinated Amount and the
Additional Subordinated Amount.

     "Calculation Period," if applicable, shall have the meaning specified in
the applicable interest rate cap agreement.

     "Cedel" shall mean Clearstream Banking.

     "Certificate Interest" shall mean, for any Class for any Interest Payment
Date, the product of (a) the Class Invested Amount for such Class for such
Interest Payment Date and (b) a fraction the numerator of which is (1) with
respect to each Class that has no Subclasses, the Certificate Rate for such
Class or (2) with respect to each Class that has two or more Subclasses, the
Class Weighted Average Certificate Rate, and the denominator of which is (x) if
the relevant Certificate Rate is to be calculated on the basis of the actual
number of days elapsed and a 360-day year, 360 divided by the actual number of
days from and including the immediately preceding Interest Payment Date (or, in
the case of the first Interest Payment Date, from and including the Series
Closing Date) to but excluding the current Interest Payment Date or (y) if the
relevant Certificate Rate is to be calculated on the basis of a 360-day year of
twelve 30-day months, twelve divided by the number of Distribution Dates from
and including the preceding Interest Payment Date to but excluding the current
Interest Payment Date (or, in the case of the first Interest Payment Date, 360
divided by the number of days from and including the Series Closing Date to but
excluding the 15th day of the month in which current Interest Payment Date
occurs, assuming 30-day months).

     "Certificate Principal" shall mean, with respect to each Class, the
principal payable in respect of such Class of Investor Certificates.

     "Certificate Rate," with respect to any Class or Subclass, shall mean the
certificate rate set forth in the Series Term Sheet with respect to such Class
or Subclass, as such rate may be adjusted as of the beginning of each Interest
Accrual Period, if applicable; provided, however, that the Certificate Rate for
any Class or Subclass that does not have a fixed Certificate Rate shall not
exceed the Class Cap Rate or Class Maximum Rate, as applicable, for such Class
or Subclass; and PROVIDED, FURTHER, that any interest on the Investor
Certificates (including any

                                       3
<PAGE>   14

interest accrued with respect to any Class Deficiency Amount) shall be payable
or distributed to the Investor Certificateholders only to the extent permitted
by applicable law.

     "Class A Cash Collateral Credit Enhancement" shall mean Credit Enhancement
available in the Credit Enhancement Account for the benefit of the Class A
Investor Certificates.

     "Class Additional Funds," if applicable, shall mean, with respect to any
Class for any Distribution Date, an amount equal to the product of (i) a
fraction the numerator of which is the Class Investor Interest and the
denominator of which is the sum of the Class Investor Interests for each Class
of the Series established hereby and (ii) the amount of Series Additional
Investor Funds, in each case for such Distribution Date.

     "Class Alternative Deficiency Amount" shall mean, with respect to each
Class, on any Payment Date, the Class Deficiency Amount that would have been
calculated for such Class on such Payment Date if the aggregate unreimbursed
Investor Losses on such Payment Date equaled zero.

     "Class B Available Collections" shall mean, if there is a Subordinated
Class with respect to Class A, with respect to any Distribution Date, an amount
equal to the sum of (i) Class B Available Finance Charge Collections for such
Distribution Date and (ii) Class B Principal Collections for such Distribution
Date.

     "Class B Available Finance Charge Collections" shall mean, if there is a
Subordinate Class with respect to Class A, with respect to any Distribution
Date, an amount equal to the sum of Class B Finance Charge Collections, Class B
Yield Collections, if any, Class B Investment Income, if any, for the related
Due Period and Class B Additional Funds for such Distribution Date (less Class B
Excess Servicing).

     "Class Cap Rate," if applicable, shall mean, with respect to a Class or
Subclass that does not have a fixed or maximum Certificate Rate, the rate that
is specified as such in the Series Term Sheet and in the Class Interest Rate Cap
with respect to such Class or Subclass.

     "Class Charge-Off Reimbursement Amount" shall mean, with respect to any
Class with respect to any Distribution Date, the total amount by which the Class
Cumulative Investor Charged-Off Amount for such Class is reduced on such
Distribution Date pursuant to Section 9.

     "Class Cumulative Investor Charged-Off Amount" with respect to each Class
for any Distribution Date, shall mean the sum of the Class Investor Charged-Off
Amounts for such Class for all preceding Due Periods that have not been
reimbursed pursuant to Section 9 prior to such Distribution Date, plus the Class
Investor Charged-Off Amount for such Class for the Due Period related to such
Distribution Date, as adjusted pursuant to Section 9 on such Distribution Date.
The Class Cumulative Investor Charged-Off Amount with respect to each Class
initially shall be zero.

     "Class Deficiency Amount" shall mean, with respect to each Class, on any
Payment Date, the amount, if any, by which (a) the sum of (i) Certificate
Interest for such Class accrued since

                                       4
<PAGE>   15

the immediately preceding Payment Date, (ii) if, since the immediately preceding
Payment Date and prior to the current Payment Date, a Reimbursed Loss Event has
occurred, the sum of (A) the Reimbursed Loss Interest for each previous
Distribution Date since the last Distribution Date on which Investor Losses for
such Class equaled zero and (B) the Reimbursed Loss Interest Gross-up Amount for
each previous Distribution Date since the last Distribution Date on which the
aggregate amount of unreimbursed Investor Losses for such Class equaled zero,
(iii) the Class Deficiency Amount on the immediately preceding Payment Date, and
(iv) the Class Deficiency Amount on the immediately preceding Payment Date
multiplied by the product of (A) a fraction the numerator of which is the
weighted average of the Certificate Rates or of the Class Weighted Average
Certificate Rates, as applicable, for such Class for the relevant Due Periods
and the denominator of which is (x) if the relevant Certificate Rate is to be
calculated on the basis of the actual number of days elapsed and a 360-day year,
360 divided by the actual number of days from and including the immediately
preceding Distribution Date to but excluding the current Distribution Date or
(y) if the relevant Certificate Rate is to be calculated on the basis of a
360-day year of twelve 30-day months, twelve and (B) the number of Distribution
Dates from and including the preceding Payment Date to but excluding the current
Payment Date exceeds (b) the amount deposited since the immediately preceding
Payment Date into the Series Interest Funding Account pursuant to Section
10(a)(2)(A).

     "Class Excess Servicing" shall mean, with respect to each Class, on any
Distribution Date, the positive difference, if any, between (i) the sum of Class
Finance Charge Collections for the related Due Period, Class Yield Collections
for the related Due Period, if any, Class Investment Income for the related Due
Period, if any, and Class Additional Funds for such Distribution Date, if any,
and (ii) the Class Required Amount.

     "Class Expected Final Payment Date" with respect to each Class, if
applicable, shall mean the date designated as such in the Series Term Sheet.

     "Class Final Maturity Date" with respect to each Class, if applicable,
shall mean the date designated as such in the Series Term Sheet.

     "Class Finance Charge Collections" shall mean, with respect to any Class,
with respect to any day or any Distribution Date or Trust Distribution Date, as
applicable, an amount equal to the product of (x) the Class Percentage with
respect to Finance Charge Collections for the related Distribution Date and (y)
the amount of Finance Charge Collections for such day or for the related Due
Period, as applicable; provided, however, that Class Finance Charge Collections
for each Class shall be increased by the lesser of (i) the amount of Class
Investment Shortfall for such Class and (ii) an amount equal to the product of
the total amount of Finance Charge Collections otherwise allocable to Discover
Bank on behalf of the Holder of the Seller Certificate for the related Due
Period and a fraction the numerator of which is the Class Invested Amount for
such Class and the denominator of which is the Aggregate Invested Amount; and
provided, further, that notwithstanding the foregoing, Class Finance Charge
Collections for each Class shall not, with respect to any such day, Distribution
Date or Trust Distribution Date during the Accumulation Period or the Early
Accumulation Period, as applicable, exceed the amount that would be available if
the Class Percentage with respect thereto were the percentage equivalent of

                                       5
<PAGE>   16

a fraction the numerator of which is the amount of the Class Investor Interest
on the last day of the Due Period prior to the commencement of the Accumulation
Period or the Early Accumulation Period, and the denominator of which is the
greater of (i) the amount of Principal Receivables in the Trust on the first day
of the related Due Period and (ii) the sum of the numerators used in calculating
the components of the Series Percentage with respect to Finance Charge
Collections for each Series then outstanding (including the Series established
hereby) as of such day, Distribution Date or Trust Distribution Date, as
applicable.

     "Class Initial Investor Interest" shall mean, with respect to each Class,
the aggregate face amount of Investor Certificates of such Class as specified in
the Series Term Sheet.

     "Class Interest Rate Cap," if applicable, shall mean, with respect to a
Class or Subclass that does not have a fixed or maximum Certificate Rate, the
interest rate cap agreement or other interest rate protection for the benefit of
the Investor Certificateholders of such Class or Subclass, dated on or before
the Series Closing Date, between the Trustee, acting on behalf of the Trust, and
the Interest Rate Cap Provider, or any Replacement Interest Rate Cap or
Qualified Substitute Cap Arrangement.

     "Class Interest Rate Cap Payment" shall mean, with respect to a Class or
Subclass that does not have a fixed or maximum Certificate Rate, with respect to
any Interest Payment Date, any payment required to be made on such Interest
Payment Date by the Interest Rate Cap Provider with respect to the Class
Interest Rate Cap for such Class or Subclass.

     "Class Interest Rate Swap," if applicable, shall mean, with respect to a
Class or Subclass, the interest rate swap agreement or other interest rate
protection agreement with respect to any Class or Subclass, dated on the Series
Closing Date, between the Trust and the Swap Counterparty and any replacement or
successor interest rate swap agreement or interest rate protection agreement.

     "Class Invested Amount" shall mean, with respect to any Class for any
Distribution Date, an amount equal to the Class Initial Investor Interest minus
the sum of (a) the aggregate amount of payments of Certificate Principal paid to
such Class of Investor Certificateholders, in each case prior to such
Distribution Date, (b) the aggregate amount of Investor Losses of such Class not
reimbursed prior to such Distribution Date and (c) the aggregate amount of
losses of principal on investments of funds on deposit for the benefit of such
Class in the Series Principal Funding Account, if applicable.

     "Class Investment Income" shall mean, with respect to any Class, income
from the investment of funds on deposit in the Series Principal Funding Account
for the benefit of such Class less Excess Income.

     "Class Investment Shortfall" with respect to each Class with respect to any
Distribution Date during the Accumulation Period or the Early Accumulation
Period, if applicable, shall mean an amount equal to the positive difference, if
any, between (i) one-twelfth of the product of (a) (x) with respect to each
Class that has no Subclasses, the Certificate Rate, or (y) with respect to

                                       6
<PAGE>   17

each Class that has two or more Subclasses, the Class Weighted Average
Certificate Rate, in each case for the related Due Period, and (b) the amount on
deposit in the Series Principal Funding Account for the benefit of such Class as
of the end of the previous Distribution Date and (ii) Class Investment Income
for the related Due Period.

     "Class Investor Charged-Off Amount" shall mean, with respect to each Class
for any Distribution Date, an amount equal to the sum of (i) the product of (a)
the Charged-Off Amount for such Distribution Date and (b) the Class Percentage
with respect to the Charged-Off Amount and (ii) if there is a Subordinate Class
with respect to Class A, with respect to Class B only, the sum of (a) the
positive difference, if any, between (x) the Class B Subordinated Payment and
(y) the amount of Class B Available Finance Charge Collections for the related
Due Period and (b) the amount by which the Class A Cumulative Investor
Charged-Off Amount is reduced by way of a reallocation of Class B Investor
Interest pursuant to Section 9.

     "Class Investor Interest" shall mean, with respect to any Class for any
Distribution Date, an amount equal to the Class Invested Amount for such Class
for such Distribution Date minus, if applicable, the aggregate amount on deposit
in the Series Principal Funding Account for the benefit of such Class in respect
of Principal Collections.

     "Class Maximum Rate," if applicable, shall have the meaning set forth in
the Series Term Sheet with respect to any Class or Subclass.

     "Class Modified Required Amount" with respect to any Class on any
Distribution Date, shall mean the Class Required Amount for such Distribution
Date minus the sum of all accrued but unpaid Class Monthly Servicing Fees.

     "Class Monthly Deficiency Amount" with respect to any Class on any
Distribution Date, shall have the meaning set forth in Section 10(a)(2)(A). The
Class Monthly Deficiency Amount for each Class initially shall be zero.

     "Class Monthly Servicing Fee" with respect to any Class for any
Distribution Date, shall mean an amount equal to the product of (x) a fraction
the numerator of which shall be the Class Investor Interest and the denominator
of which shall be the Series Investor Interest, in each case on the first day of
the related Due Period and (y) the amount of the Investor Servicing Fee for the
related Due Period.

     "Class Percentage" shall mean, with respect to any Class with respect to
any Distribution Date or any Trust Distribution Date, as applicable:

          (a) when used with respect to the Charged-Off Amount, the percentage
     equivalent of a fraction the numerator of which shall be the amount of the
     Class Investor Interest and the denominator of which shall be the greater
     of (i) the amount of Principal Receivables in the Trust and (ii) the
     Aggregate Investor Interest, in each case on the first day of the related
     Due Period; or

                                       7
<PAGE>   18

          (b) when used with respect to Principal Collections prior to the
     occurrence of a Fixed Principal Allocation Event, the percentage equivalent
     of a fraction the numerator of which shall be the amount of the Class
     Investor Interest on the first day of the related Due Period and the
     denominator of which shall be the greater of (i) the amount of Principal
     Receivables in the Trust on the first day of the related Due Period and
     (ii) the sum of the numerators used in calculating the components of the
     Series Percentage with respect to Principal Collections for each Series
     then outstanding (including the Series established hereby) as of such
     Distribution Date or Trust Distribution Date, as applicable; or

          (c) when used with respect to Principal Collections on and after the
     occurrence of a Fixed Principal Allocation Event, the percentage equivalent
     of a fraction, the numerator of which shall be the amount of the Class
     Investor Interest on the last day of the Due Period prior to the occurrence
     of a Fixed Principal Allocation Event and the denominator of which shall be
     the greater of (i) the amount of Principal Receivables in the Trust on the
     first day of the related Due Period and (ii) the sum of the numerators used
     in calculating the components of the Series Percentage with respect to
     Principal Collections for each Series then outstanding (including the
     Series established hereby) as of such Distribution Date or Trust
     Distribution Date, as applicable; provided, however, that from and after
     the Fully Funded Date, if any, the Class Percentage with respect to
     Principal Collections will equal zero; or

          (d) when used with respect to Finance Charge Collections during the
     Revolving Period and the Accumulation Period or the Controlled Liquidation
     Period, as applicable, and provided that an Effective Alternative Credit
     Support Election has been made, during the Early Accumulation Period or the
     Amortization Period, the percentage equivalent of a fraction the numerator
     of which shall be the amount of the Class Investor Interest on the first
     day of the related Due Period and the denominator of which shall be the
     greater of (i) the amount of Principal Receivables in the Trust on the
     first day of the related Due Period and (ii) the sum of the numerators used
     in calculating the components of the Series Percentage with respect to
     Finance Charge Collections for each Series then outstanding (including the
     Series established hereby) as of such Distribution Date or Trust
     Distribution Date, as applicable; provided, however, that from and after
     the Fully Funded Date, if any, the Class Percentage with respect to Finance
     Charge Collections will equal zero; or

          (e) when used with respect to Finance Charge Collections during the
     Early Accumulation Period or the Amortization Period, provided that an
     Effective Alternative Credit Support Election has not been made, the
     percentage equivalent of a fraction the numerator of which shall be the
     amount of the Class Investor Interest on the last day of the Due Period
     prior to the occurrence of an Early Accumulation Event or an Amortization
     Event, and the denominator of which shall be the greater of (i) the amount
     of Principal Receivables in the Trust on the

                                       8
<PAGE>   19

     first day of the related Due Period and (ii) the sum of the numerators used
     in calculating the components of the Series Percentage with respect to
     Finance Charge Collections for each Series then outstanding (including the
     Series established hereby) as of such Distribution Date or Trust
     Distribution Date, as applicable; provided, however, that from and after
     the Fully Funded Date, if any, the Class Percentage with respect to Finance
     Charge Collections will equal zero.

     "Class Principal Collections" shall mean, with respect to any Class with
respect to any day or any Distribution Date or Trust Distribution Date, as
applicable, an amount equal to the product of (x) the Class Percentage with
respect to Principal Collections for the related Distribution Date and (y) the
amount of Principal Collections for such day or for the related Due Period, as
applicable.

     "Class Required Amount" with respect to any Class on any Distribution Date,
shall mean the sum of (i) the product of (a) the Class Invested Amount with
respect to such Class for such Distribution Date and (b) a fraction, the
numerator of which is the Certificate Rate for such Class, and the denominator
of which is (x) if the relevant Certificate Rate is to be calculated on the
basis of the actual number of days elapsed and a 360-day year, (A) if each
Interest Payment Date is also a Distribution Date, 360 divided by the actual
number of days from and including the immediately preceding Distribution Date
(or in the case of the first Distribution Date, from and including the Series
Closing Date) to but excluding the current Distribution Date or (B) if each
Interest Payment Date is not also a Distribution Date, 360 divided by the actual
number of days from and including the immediately preceding Interest Calculation
Date (or in the case of the first Distribution Date, from and including the
Series Closing Date) to but excluding the Interest Calculation Date following
the current Distribution Date or (y) if the relevant Certificate Rate is to be
calculated on the basis of a 360-day year of twelve 30-day months, twelve (or in
the case of the first Distribution Date, 360 divided by the number of days from
and including the Series Closing Date to but excluding the current Distribution
Date (if each Interest Payment Date is also a Distribution Date) or the Interest
Calculation Date following the current Distribution Date (if each Interest
Payment Date is not also a Distribution Date), assuming each month has 30 days),
(ii) the Class Monthly Deficiency Amount on the immediately preceding
Distribution Date, (iii) the Class Deficiency Amount on the immediately
preceding Payment Date multiplied by a fraction the numerator of which is the
weighted average of the Certificate Rates or of the Class Weighted Average
Certificate Rates, as applicable, for such Class for each Due Period subsequent
to the immediately preceding Payment Date plus 2.00% per annum and the
denominator of which is (x) if the relevant Certificate Rate is to be calculated
on the basis of the actual number of days elapsed and a 360-day year, 360
divided by the actual number of days from and including the immediately
preceding Distribution Date to but excluding the current Distribution Date or
(y) if the relevant Certificate Rate is to be calculated on the basis of a
360-day year of twelve 30-day months, twelve, (iv) if on the immediately
preceding Distribution Date a Reimbursed Loss Event occurred, the sum of (A) the
Reimbursed Loss Interest for each previous Distribution Date since the last
Distribution Date on which the aggregate amount of unreimbursed Investor Losses
for such Class equaled zero, (B) the Reimbursed Loss Interest Gross-up Amount
for each previous Distribution Date since the last Distribution Date on which
the aggregate amount of unreimbursed Investor Losses for such Class equaled zero
and (C) for

                                       9
<PAGE>   20

any Distribution Date following the Distribution Date immediately following the
Reimbursed Loss Event to and including the next Payment Date, the Reimbursed
Loss Interest Gross-up Amount for such Distribution Date and (v) the sum of all
accrued but unpaid Class Monthly Servicing Fees.

     "Class Required Amount Shortfall" with respect to any Class on any
Distribution Date, shall have the meaning set forth in Section 9.

     "Class Subordinated Payment" shall mean, if there is a Subordinate Class
with respect to Class A, with respect to any Distribution Date, the amount, if
any, withheld from Class B Available Collections and paid to or for the benefit
of the Class A Certificateholders pursuant to Section 9 on such Distribution
Date.

     "Class Weighted Average Certificate Rate," if applicable, shall mean, for
any Class composed of two or more Subclasses, for any Distribution Date, the
percentage equivalent of a fraction the numerator of which is the sum of, for
each Subclass of such Class, the product of the Class Invested Amount for such
Subclass and the Certificate Rate for such Subclass for such Distribution Date,
and the denominator of which is the Class Invested Amount for such Class.

     "Class Yield Collections" shall mean, with respect to any Class, with
respect to any day or any Distribution Date, as applicable, an amount equal to
the product of the Class Yield Percentage for such Class and the amount of
Series Yield Collections for such day or the related Due Period, as applicable.

     "Class Yield Percentage" shall mean, with respect to any Class on any
Distribution Date (i) during the Revolving Period and the Accumulation Period or
the Controlled Liquidation Period, as applicable, and, provided that an
Effective Alternative Credit Support Election has been made, during the Early
Accumulation Period or the Amortization Period, the percentage equivalent of a
fraction the numerator of which shall be the Class Investor Interest for such
Class and the denominator of which shall be the Series Investor Interest, in
each case as of the first day of the related Due Period; or (ii) during the
Early Accumulation Period or the Amortization Period, provided that an Effective
Alternative Credit Support Election has not been made, the percentage equivalent
of a fraction the numerator of which shall be the amount of the Class Investor
Interest on the last day of the Due Period prior to the occurrence of an Early
Accumulation Event or Amortization Event and the denominator of which shall be
the amount of the Series Investor Interest on the last day of the Due Period
prior to the occurrence of an Early Accumulation Event or Amortization Event.

     "Commercial Paper Determination Date," if applicable, shall have the
meaning set forth in the Series Term Sheet.

     "Commercial Paper Rate," if applicable, shall mean, with respect to any
Commercial Paper Determination Date, the rate equal to the Money Market Yield on
such Commercial Paper Determination Date of the rate for commercial paper having
a maturity of 30 days as published by the Board of Governors of the Federal
Reserve System in "Statistical Release H.15 (519),

                                       10
<PAGE>   21

Selected Interest Rates," or any successor publication, under the heading
"Commercial Paper." In the event that such rate is not published on such date,
then the Commercial Paper Rate will be the Money Market Yield on such date of
the rate for Commercial Paper having a maturity of 30 days as published by the
Federal Reserve Bank of New York in the daily statistical release "Composite
3:30 p.m. Quotations for U.S. Government Securities" ("Composite Quotations")
under the heading "Commercial Paper." If on such date the rate for commercial
paper is not yet published in either H.15 (519) or Composite Quotations, the
Commercial Paper Rate for such date shall be calculated by the Trustee and shall
be the Money Market Yield of the arithmetic mean (rounded to the nearest
one-hundredth of a percent, with five hundred one-thousandths of a percent
rounded upward) of the offered rates, as of 11:00 a.m., New York City time, of
three leading dealers of commercial paper in New York City selected by the
Trustee on such date, for commercial paper having a maturity of 30 days placed
for an industrial issuer whose bond rating is "AA" or the equivalent, from
either Rating Agency. In the event that such rates are not available on such
date, then the Commercial Paper Rate shall be the Money Market Yield of the rate
for commercial paper so provided in a comparable source. The Commercial Paper
Rate shall be determined by the Trustee.

     "Controlled Accumulation Amount" shall have the meaning set forth in the
Series Term Sheet.

     "Controlled Liquidation Amount," if applicable, with respect to any
Distribution Date related to the Controlled Liquidation Period, the Accumulation
Period or the Early Accumulation Period shall mean, if applicable, an amount
equal to the sum of the Liquidation Amount and any existing Deficit Liquidation
Amount; provided, however, that the Controlled Liquidation Amount shall not be
less than zero and shall not exceed an amount equal to the Series Invested
Amount.

     "Controlled Liquidation Period," if applicable, shall have the meaning set
forth in the Series Term Sheet.

     "Credit Enhancement" shall mean any credit enhancement obtained by the
Master Servicer in accordance with Section 11.

     "Credit Enhancement Account," if applicable, shall have the meaning set
forth in Section 8.

     "Credit Enhancement Agreement" shall mean the Agreement among the Sellers,
the Master Servicer, the Trustee and the Credit Enhancement Provider with
respect to the Credit Enhancement.

     "Credit Enhancement Drawing" shall mean any drawing made under the Credit
Enhancement.

                                       11
<PAGE>   22

     "Credit Enhancement Fee" shall mean, on any Distribution Date, the sum of
all fees and interest payable to the Credit Enhancement Provider or the Trustee
as administrator of the Credit Enhancement for the related Due Period pursuant
to the Credit Enhancement Agreement.

     "Credit Enhancement Provider" shall have the meaning set forth in the
Series Term Sheet.

     "Deficit Accumulation Amount" shall mean, with respect to the first
Distribution Date of the Accumulation Period, zero, and with respect to any
other Distribution Date of the Accumulation Period, the amount, if any, by which
the amount deposited into the Series Principal Funding Account on the preceding
Distribution Date is less than the Controlled Accumulation Amount for such
preceding Distribution Date.

     "Deficit Liquidation Amount" shall mean, with respect to the first
Distribution Date relating to the Due Period commencing on the Principal
Commencement Date, zero, and with respect to any subsequent Distribution Date,
the amount, if any, by which the amount of Certificate Principal paid to the
Investor Certificateholders on the preceding Distribution Date is less than the
Controlled Liquidation Amount for such preceding Distribution Date.

     "Distribution Date" shall have the meaning set forth in the Series Term
Sheet.

     "Dollars" or "U.S. $" or "$" shall mean the lawful currency of the United
States of America.

     "Drawing Date" shall mean the first Business Day preceding each
Distribution Date.

     "Early Accumulation Commencement Date," if applicable, shall mean the date
on which an Early Accumulation Event is deemed to occur.

     "Early Accumulation Event," if applicable, shall mean any event specified
in Section 21 hereof.

     "Early Accumulation Period," if applicable, shall have the meaning set
forth in the Series Term Sheet.

     "Effective Alternative Credit Support Election" shall have the meaning
specified in Section 12.

     "Estimated Investment Shortfall," if applicable, shall have the meaning set
forth in the Series Term Sheet.

     "Estimated Principal Distribution Amount," if applicable, shall mean, with
respect to any date of determination during the Early Accumulation Period, an
amount equal to the Series Principal Collections for the prior Distribution
Date; provided, however, that such amount shall not exceed the Series Investor
Interest as of such prior Distribution Date.

                                       12
<PAGE>   23

     "Estimated Yield," if applicable, shall have the meaning specified in the
Series Term Sheet.

     "Excess Income" on any Distribution Date shall mean an amount equal to the
excess, if any, of (a) interest and other income (net of investment expenses) on
such Distribution Date with respect to the funds on deposit in the Series
Principal Funding Account during the related Interest Period over (b) the amount
on deposit in the Series Principal Funding Account in respect of Certificate
Principal during such Interest Period multiplied by a fraction, the numerator of
which is the Certificate Rate or the Class Weighted Average Certificate Rate, as
applicable, for the Class for whose benefit the amounts on deposit in the Series
Principal Funding Account are held during such Interest Period and the
denominator of which is (x) if the relevant Certificate Rate is to be calculated
on the basis of the actual number of days elapsed and a 360-day year, 360
divided by the actual number of days from and including the immediately
preceding Distribution Date to but excluding the current Distribution Date or
(y) if the relevant Certificate Rate is to be calculated on the basis of a
360-day year of twelve 30-day months, twelve.

     "Fixed Principal Allocation Event" shall mean the earliest of (a) the
beginning of the Due Period immediately following the Due Period related to the
first Distribution Date during the Controlled Liquidation Period or the
Accumulation Period, as applicable, with respect to the Series established
hereby on which the Series Available Principal Amount is less than zero; (b) the
date on which an Early Accumulation Event or an Amortization Event with respect
to the Series established hereby occurs; and (c) a date selected by the Master
Servicer, if any. If the Master Servicer establishes a date for a Fixed
Principal Allocation Event pursuant to clause (c) of the preceding sentence, the
Master Servicer shall provide notification of such date to Discover Bank on
behalf of the Holder of the Seller Certificate, the Trustee, the Credit
Enhancement Provider and the Rating Agencies no later than two Business Days
prior to such date.

     "Fully Funded Date," if applicable, shall mean the first Distribution Date
on which the amount of funds on deposit in the Series Principal Funding Account
(after giving effect to all deposits made on such date pursuant to Section 9)
equals the Series Invested Amount for such Distribution Date (prior to any
payments of principal on such date pursuant to Section 10); provided, however,
that the Fully Funded Date shall only occur during the Early Accumulation
Period.

     "Funded Credit Enhancement" shall mean any Credit Enhancement that consists
of funds on deposit in one or more segregated trust accounts in the corporate
trust department of an office or branch of the Trustee or a Qualified
Institution for the benefit of the Investor Certificateholders of the Series
established hereby, including, without limitation, a reserve account or a cash
collateral account.

     "Group Available Principal Amount" shall mean, with respect to each
Distribution Date, the amount remaining on deposit in the Group Principal
Collections Reallocation Account on such Distribution Date after all withdrawals
have been made from such account for the benefit of any Series in the same Group
as the Series established

                                       13
<PAGE>   24

hereby (including the Series established hereby), but before such amount is
withdrawn from the Group Principal Collections Reallocation Account and
deposited into the Collections Account pursuant to Section 9(b)(35)).

     "Group Buffer Amount," if applicable, shall have the meaning set forth in
the Series Term Sheet.

     "Group Excess Spread" shall mean, for any Distribution Date, the sum of the
Series Excess Spreads for each Series (including the Series established hereby)
that is a member of the same Group as the Series established hereby, in each
case for such Distribution Date.

     "Group Finance Charge Collections Reallocation Account" shall have the
meaning specified in Section 8.

     "Group Principal Allocation Event" shall mean the first Distribution Date,
if any, on which (i) the sum of the amount of Series Principal Collections less
the amount of Series Yield Collections for each Series that is a member of the
same Group as the Series established hereby (including the Series established
hereby) that is not in its Early Accumulation Period or its Amortization Period
is less than (ii) the Group Required Principal Amount for such Distribution
Date.

     "Group Principal Collections Reallocation Account" shall have the meaning
specified in Section 8.

     "Group Required Principal Amount" shall mean, with respect to the Group of
which the Series established hereby is a member, for any Distribution Date, the
Series Required Principal Amount for such Distribution Date plus, for each
Series that is a member of such Group, the Series Required Principal Amount for
such Series for such Distribution Date.

     "Initial Credit Enhancement" shall mean the Credit Enhancement first
obtained by the Master Servicer pursuant to Section 11.

     "Initial Subordinated Amount," if applicable, shall have the meaning set
forth in the Series Term Sheet.

     "Interest Accrual Period" shall mean, with respect to any Interest Payment
Date, the period from and including the Interest Payment Date immediately
preceding such Interest Payment Date (or, in the case of the first Interest
Payment Date, from and including the Series Closing Date) to but excluding such
Interest Payment Date.

     "Interest Calculation Date," if applicable, shall have the meaning set
forth in the Series Term Sheet.

     "Interest Payment Date" shall mean each date designated as such in the
Series Term Sheet.

                                       14
<PAGE>   25

     "Interest Period" shall mean each period from and including a given
Distribution Date to but excluding the next following Distribution Date
commencing with the earlier to occur of (i) the first Distribution Date of the
Early Accumulation Period or (ii) the first Distribution Date of the
Accumulation Period.

     "Interest Rate Cap Provider," if any, shall mean the entity listed as the
Interest Rate Cap Provider in the Series Term Sheet, in its capacity as obligor
under the Class Interest Rate Caps, or if any Replacement Class Interest Rate
Caps or Qualified Substitute Cap Arrangements are obtained pursuant to Section
15, the obligor with respect to such Replacement Class Interest Rate Caps or
Qualified Substitute Cap Arrangements.

     "Interest Rate Swap Account" shall have the meaning specified in Section 8.

     "Interest Rate Swap Counterparty," if applicable, shall have the meaning
set forth in the Series Term Sheet.

     "Investor Accounts" shall mean, in addition to Investor Accounts
established pursuant to the Pooling and Servicing Agreement, the Series
Collections Account, the Series Principal Collections Account, the Series
Principal Funding Account, the Series Interest Funding Account, the Series
Distribution Account, the Group Finance Charge Collections Reallocation Account
and the Group Principal Collections Reallocation Account.

     "Investor Charge-Off Loss" shall have the meaning set forth in Section
13(b).

     "Investor Loss" with respect to each Class, shall mean (i) the amount of
any reduction in the Class Invested Amount with respect to such Class pursuant
to Section 13(b), (ii) in the event the Receivables are sold pursuant to Section
12.01(b) of the Pooling and Servicing Agreement, the amount, if any, by which
the Class Investor Interest (determined immediately prior to such sale) exceeds
the product of (x) a fraction, the numerator of which is the Class Investor
Interest and the denominator of which is the Aggregate Investor Interest and (y)
the net proceeds of such sale and (iii) in the event Receivables are sold
pursuant to Section 12.02(c) of the Pooling and Servicing Agreement, the amount,
if any, by which the Class Investor Interest (determined immediately prior to
such sale) exceeds the product of (x) a fraction, the numerator of which is the
Class Investor Interest and the denominator of which is the Series Investor
Interest and (y) the net proceeds of such sale.

     "Investor Servicing Fee" shall mean, with respect to any Distribution Date,
an amount equal to the product of the Investor Servicing Fee Percentage and the
Series Investor Interest on the first day of the Due Period related to such
Distribution Date (or in the case of the first Distribution Date for the Series
established hereby, the Series Initial Investor Interest).

     "Investor Servicing Fee Percentage" shall mean the percentage identified as
such in the Series Term Sheet.

     "LIBOR," if applicable, shall mean, with respect to any LIBOR Determination
Date, the rate for deposits in United States dollars with a duration comparable
to the relevant Interest

                                       15
<PAGE>   26

Accrual Period which appears on Telerate Page 3750 as of 11:00 a.m., London
time, on such day. If such rate does not appear on Telerate Page 3750, the rate
will be determined by the Trustee on the basis of the rates at which deposits in
United States dollars are offered by major banks in the London interbank market,
selected by the Trustee, at approximately 11:00 a.m., London time, on such day
to prime banks in the London interbank market with a duration comparable to the
relevant Interest Accrual Period commencing on that day. The Trustee will
request the principal London office of at least four banks to provide a
quotation of its rate. If at least two such quotations are provided, the rate
will be the arithmetic mean of the quotations. If fewer than two quotations are
provided as requested, the rate for that day will be the arithmetic mean of the
rates quoted by four major banks in New York City, selected by the Trustee, at
approximately 11:00 a.m., New York City time, on that day for loans in United
States dollars to leading European banks with a duration comparable to the
relevant Interest Accrual Period commencing on that day.

     "LIBOR Business Day," if applicable, shall mean a day other than a Saturday
or a Sunday on which banking institutions in the City of London, England and in
New York, New York are not required or authorized by law to be closed.

     "LIBOR Determination Date," if applicable, shall have the meaning set forth
in the Series Term Sheet.

     "Liquidation Amount," if applicable, shall have the meaning set forth in
the Series Term Sheet.

     "Maximum Class A Credit Enhancement Amount," if applicable, shall have the
meaning set forth in the Series Term Sheet.

     "Maximum Class B Credit Enhancement Amount," if applicable, shall have the
meaning set forth in the Series Term Sheet.

     "Maximum Shared Credit Enhancement Amount," if applicable, shall have the
meaning set forth in the Series Term Sheet.

     "Money Market Yield" shall mean a yield (expressed as a percentage rounded
to the nearest one-hundredth of a percent, with five hundred one-thousandths of
a percent rounded upwards) calculated in accordance with the following formula:

               Money Market Yield    =    D x 360       x  100
                                          -------
                                          360 - (D x M)

where "D" refers to the per annum rate for commercial paper quoted on a bank
discount basis and expressed as a decimal, and "M" refers to the actual number
of days in the related Interest Accrual Period.

     "Monthly Amortization Rate," if applicable, shall have the meaning set
forth in the Series Term Sheet.

                                       16
<PAGE>   27

     "Monthly Swap Deposit," if applicable, shall have the meaning set forth in
the Series Term Sheet.

     "Net Swap Payment," if applicable, shall mean, with respect to any Class
that is subject to a Class Interest Rate Swap, (x) on any Interest Payment Date
prior to the early termination of the Class Interest Rate Swap, the positive
difference, if any, between (i) the amount owed by the Trust to the Interest
Rate Swap Counterparty under the Class Interest Rate Swap on such Interest
Payment Date and (ii) the amount owed by the Interest Rate Swap Counterparty to
the Trust under the Class Interest Rate Swap on such Interest Payment Date, and
(y) on any Distribution Date in any calendar month following the calendar month
in which an early termination of the Class Interest Rate Swap occurred, the
unpaid portion of any termination payment owed by the Trust to the Interest Rate
Swap Counterparty in accordance with the terms of the Class Interest Rate Swap.

     "Net Swap Receipt," if applicable, shall mean, with respect to any Class
that is subject to a Class Interest Rate Swap, (x) on any Interest Payment Date
prior to the early termination of the Class Interest Rate Swap, the positive
difference, if any, between (i) the amount owed by the Interest Rate Swap
Counterparty to the Trust under the Class Interest Rate Swap on such Interest
Payment Date and (ii) the amount owed by the Trust to the Interest Rate Swap
Counterparty under the Class Interest Rate Swap on such Interest Payment Date,
and (y) on any Distribution Date following an early termination of the Class
Interest Rate Swap, the amount of any termination payment paid by the Interest
Rate Swap Counterparty on or prior to such Distribution Date and after the
previous Distribution Date.

     "Non-U.S. Holder," shall mean any person who, as to the United States, is a
non-resident alien individual, a foreign corporation, a foreign estate, a
foreign trust or a foreign partnership, as such terms are defined in the
Internal Revenue Code of 1986, as amended.

     "Payment Date" shall mean any Interest Payment Date and any Class Expected
Final Payment Date.

     "Portfolio Yield" shall mean, with respect to any Due Period, the
annualized percentage equivalent of a fraction, the numerator of which shall be
the sum of (i) the amount of Finance Charge Collections received during such Due
Period, (ii) the amount of Series Yield Collections for each Series then
outstanding for such Due Period and (iii) the amount of Series Additional Funds
for each Series then outstanding for such Due Period, and the denominator of
which shall be the total amount of Principal Receivables in the Trust as of the
first day of such Due Period.

     "Prepayment Calculation Table," if applicable, shall have the meaning set
forth in the Series Term Sheet.

     "Prepayment Determination Date," if applicable, shall have the meaning set
forth in the Series Term Sheet.

                                       17
<PAGE>   28

     "Principal Commencement Date" shall mean the date designated as such in the
Series Term Sheet.

     "Principal Distribution Amount" shall mean, with respect to any
Distribution Date occurring in (i) the Accumulation Period, the Controlled
Accumulation Amount, (ii) the Controlled Liquidation Period, the Controlled
Liquidation Amount, (iii) the Early Accumulation Period, the Series Investor
Interest, or (iv) in the Amortization Period, the Series Investor Interest.

     "Principal Distribution Amount Shortfall" with respect to any Distribution
Date in the Accumulation Period, the Controlled Liquidation Period, the Early
Accumulation Period or the Amortization Period, as applicable, shall have the
meaning set forth in Section 9.

     "Principal Payment Date" shall mean, if applicable, each date designated as
such in the Series Term Sheet.

     "Qualified Credit Enhancement Provider" shall mean, (i) if the Credit
Enhancement is not Funded Credit Enhancement, an institution that meets the
Qualified Credit Enhancement Provider Rating Requirements established by each
Rating Agency, which requirements are set forth in the Series Term Sheet if the
Initial Credit Enhancement is not Funded Credit Enhancement, or (ii) if the
Initial Credit Enhancement is Funded Credit Enhancement, an institution that
meets the Qualified Credit Enhancement Provider Rating Requirements established
by each Rating Agency, which requirements will be established by the Rating
Agencies at the time, if any, that the Master Servicer elects to replace the
Initial Credit Enhancement with Credit Enhancement that is not Funded Credit
Enhancement (or, in either case, such lesser requirements as the applicable
Rating Agency shall allow); provided, however, that in the event the Master
Servicer elects to obtain Credit Enhancement that is not Funded Credit
Enhancement and is unable after the exercise of its best efforts to obtain from
a Qualified Credit Enhancement Provider as so defined such Credit Enhancement
with respect to which the representations set forth in Section 11(a) shall be
true, the term "Qualified Credit Enhancement Provider" shall mean a Person who
satisfies such requirements except that its long-term unsecured debt rating by
any nationally recognized rating agency may be lower than that set forth in such
requirements, but shall not be lower than the highest credit rating of any
Person who otherwise satisfies said requirements and from whom the Master
Servicer is able to obtain such a Credit Enhancement.

     "Qualified Substitute Cap Arrangement," if any, shall have the meaning
specified in Section 15.

     "Reimbursed Loss Event" shall mean, with respect to each Class for any
Distribution Date, the occurrence of the reimbursement of Investor Losses
pursuant to Section 13(c) with respect to such Class on such Distribution Date
such that the aggregate amount of unreimbursed Investor Losses for such Class is
reduced to zero.

                                       18
<PAGE>   29

     "Reimbursed Loss Interest" shall mean, for any Class for any Distribution
Date, an amount equal to the product of (i) the aggregate amount of Investor
Losses that have not been reimbursed pursuant to Section 13(c) prior to the
commencement of the related Due Period and (ii) a fraction the numerator of
which is the Certificate Rate or the Class Weighted Average Certificate Rate, as
applicable, for such Class for the related Due Period and the denominator of
which is (x) if the relevant Certificate Rate is to be calculated on the basis
of the actual number of days elapsed and a 360-day year, (A) if each Interest
Payment Date is also a Distribution Date, 360 divided by the actual number of
days from and including the immediately preceding Distribution Date to but
excluding the current Distribution Date or (B) if each Interest Payment Date is
not also a Distribution Date, 360 divided by the actual number of days from and
including the Interest Calculation Date in the preceding calendar month to but
excluding the Interest Calculation Date following the current Distribution Date
or (y) if the relevant Certificate Rate is to be calculated on the basis of a
360-day year of twelve 30-day months, twelve.

     "Reimbursed Loss Interest Gross-up Amount" shall mean, for any Class for
any Distribution Date, an amount equal to the product of (i) the positive
difference, if any, between the Class Alternative Deficiency Amount for the
immediately preceding Payment Date and the actual Class Deficiency Amount for
the immediately preceding Payment Date and (ii) a fraction the numerator of
which is the Certificate Rate or the Class Weighted Average Certificate Rate, as
applicable, for such Class for the related Due Period and the denominator of
which is (x) if the relevant Certificate Rate is to be calculated on the basis
of the actual number of days elapsed and a 360-day year, (A) if each Interest
Payment Date is also a Distribution Date, 360 divided by the actual number of
days from and including the immediately preceding Distribution Date to but
excluding the current Distribution Date or (B) if each Interest Payment Date is
not also a Distribution Date, 360 divided by the actual number of days from and
including the Interest Calculation Date in the preceding calendar month to but
excluding the Interest Calculation Date following the current Distribution Date
or (y) if the relevant Certificate Rate is to be calculated on the basis of a
360-day year of twelve 30-day months, twelve.

     "Replacement Class Interest Rate Cap," if any, shall mean an interest rate
cap agreement or other interest rate protection having substantially the same
terms and conditions as the Class Interest Rate Cap that it replaces, and
otherwise satisfying the conditions set forth in Section 15.

     "Required Daily Deposit" shall mean, if applicable, with respect to each
Servicer, an amount equal to:

          (a)  during the Revolving Period and the Accumulation Period or the
               Controlled Liquidation Period, as applicable, the sum of

               (x)(1) during the Revolving Period, an amount equal to the sum of
               (i) the sum of the Class Finance Charge Collections and the Class
               Yield Collections for each Class for such day and (ii) the amount
               of Class B Principal Collections for such day; minus the sum of
               the Class B Yield Collections for such day and all accrued but
               unfunded Class A Monthly Servicing Fees; or

                                       19
<PAGE>   30

               (2) during the Accumulation Period or the Controlled Liquidation
               Period, as applicable, an amount equal to the sum of (i) the
               amount set forth in clause (1) above and (ii)(A) until the
               aggregate amount deposited during such Due Period pursuant to
               this clause (ii) equals the Controlled Accumulation Amount or the
               Controlled Liquidation Amount, as applicable, for the related
               Distribution Date, the amount of Class A Principal Collections
               for such day less the amount of Class A Yield Collections for
               such day and (B) thereafter, zero provided, however, that with
               respect to any day on which the Controlled Accumulation Amount or
               the Controlled Liquidation Amount, as applicable, for the related
               Distribution Date can not be determined, the aggregate amount to
               be deposited for such Due Period shall be the Controlled
               Accumulation Amount or the Controlled Liquidation Amount, as
               applicable, for the Distribution Date preceding the related
               Distribution Date; plus

               (y) the positive difference, if any, between

                    (1) the product of the Class A Percentage for the related
               Distribution Date with respect to Principal Collections and the
               amount of Principal Collections received during the Due Period
               through and including such day, less the product of the Class A
               Yield Percentage and the amount of Series Yield Collections
               received during the Due Period through and including such day,
               and less any amounts deposited into the Collections Account
               during the Due Period through and including such day pursuant to
               clause (x)(2)(ii)(A) above or previously deposited during such
               Due Period pursuant to this clause (y) and

                    (2) the positive difference, if any, between (i) an amount
               equal to (A) the aggregate amount of Principal Receivables in the
               Trust as of such day multiplied by a fraction the numerator of
               which shall be the Series Initial Investor Interest and the
               denominator of which shall be sum of the Series Initial Investor
               Interest for each Series then outstanding minus (B) the Series
               Investor Interest as of the end of the immediately preceding Due
               Period (after giving effect to payments of principal made or to
               be made on the related Distribution Date) and (ii) an amount
               equal to the positive difference between the Series Minimum
               Principal Receivables Balance and the Series Investor Interest;
               provided, however, that any calculation under this paragraph (y)
               that results in a number less than zero shall be treated as zero;
               or

          (b)  during the Early Accumulation Period and the Amortization Period,
               an amount equal to the sum of the Series Finance Charge
               Collections and the Series Principal Collections for the Series
               established hereby for such day minus all accrued but unfunded
               Class A Monthly Servicing Fees; and

                                       20
<PAGE>   31

multiplied, in each case, by a fraction the numerator of which shall be the
aggregate amount of Principal Receivables in the Trust that are serviced by such
Servicer and the denominator of which shall be the aggregate amount of Principal
Receivables in the Trust; provided, however, that if any Servicer is unable to
make the calculations set forth above on any day, the Required Daily Deposit for
such Servicer for such day shall be equal to all the Collections received by
such Servicer on such day.

     Notwithstanding the foregoing, (i) upon the occurrence of any circumstance
described in Section 10.02(d), (e) or (f) of the Pooling and Servicing Agreement
with respect to any Servicer, the Required Daily Deposit for any Series then
outstanding shall equal the amount described in paragraph (b) above for such
Servicer and (ii) a Servicer may use Collections received by it for its own
account prior to the applicable Distribution Date as permitted by Sections
3.03(b) and 4.03(b) of the Pooling and Servicing Agreement.

     "Revolving Period" shall have the meaning set forth in the Series Term
Sheet.

     "Series Additional Funds," if applicable, shall mean, for any Distribution
Date, the Additional Funds deposited into the Series Collections Account for the
Series established hereby on such Distribution Date.

     "Series Additional Investor Funds," if applicable, shall mean, for any
Distribution Date, the Series Additional Funds, if any, that are not applied to
payment of the Supplemental Servicing Fee pursuant to Section 14.

     "Series Available Principal Amount" shall mean, for any Distribution Date,
if a Group Principal Allocation Event has occurred, an amount calculated as
follows: For each Series that is a member of the same Group as the Series
established hereby (including the Series established hereby), seriatim,
beginning with the Series with the largest Series Investor Interest for such
Distribution Date (and if more than one Series has the same Series Investor
Interest on such Distribution Date, beginning with whichever of such Series has
the longest time remaining until its latest Class Expected Final Payment Date
or, if none, the last scheduled day of its Accumulation Period (assuming that no
Early Accumulation Event or Amortization Event occurs with respect to such
Series)), an amount equal to (x) the Group Available Principal Amount less (y)
the difference between the Series Required Principal Amount, if any, and the
Principal Distribution Amount for such Series for such Distribution Date, if
any, that was funded on such Distribution Date (including any portion of such
amount that was funded by amounts withdrawn from the Group Principal Collections
Reallocation Account pursuant to Section 9(b)(21), Section 9(b)(34), 9(b)(35) or
a substantially similar provision). For purposes of calculating the Series
Available Principal Amount for each other such Series, the Group Available
Principal Amount shall be reduced by the amount calculated in clause (y) for the
prior Series for which the Series Available Principal Amount was calculated.

     "Series Buffer Amount," if applicable, shall have the meaning set forth in
the Series Term Sheet.

                                       21
<PAGE>   32

     "Series Closing Date" shall mean the date designated as such in the Series
Term Sheet.

     "Series Collections Account" shall have the meaning specified in Section 8.

     "Series Cut-Off Date" shall mean the date designated as such in the Series
Term Sheet.

     "Series Distribution Account" shall have the meaning specified in Section
8.

     "Series Excess Servicing" shall mean, as of any Distribution Date, the sum
of the amounts of Class Excess Servicing for each Class of the Series
established hereby, as such amount is modified pursuant to Section 9.

     "Series Excess Spread" shall mean, for any Distribution Date, an amount
equal to (a) the sum of Series Finance Charge Collections, Series Yield
Collections, Series Additional Investor Funds and any Class Investment Income
for any Class of the Series established hereby minus (b) the sum of (i) with
respect to each Class, the product of (A) the Class Invested Amount for such
Class for such Distribution Date and (B) a fraction, the numerator of which is
the Certificate Rate for that Class, and the denominator of which is (x) if the
relevant Certificate Rate is to be calculated on the basis of the actual number
of days elapsed and a 360-day year, (A) if each Interest Payment Date is also a
Distribution Date, 360 divided by the actual number of days from and including
the immediately preceding Distribution Date (or in the case of the first
Distribution Date, from and including the Series Closing Date) to but excluding
the current Distribution Date or (B) if each Interest Payment Date is not also a
Distribution Date, 360 divided by the actual number of days from and including
the immediately preceding Interest Calculation Date (or, in the case of the
first Distribution Date, from and including the Series Closing Date) to but
excluding the Interest Calculation Date following the current Distribution Date
or (y) if the relevant Certificate Rate is to be calculated on the basis of a
360-day year of twelve 30-day months, twelve (or in the case of the first
Distribution Date, 360 divided by the number of days from and including the
Series Closing Date to but excluding the current Distribution Date (if each
Interest Payment Date is also a Distribution Date) or the Interest Calculation
Date following the current Distribution Date (if each Interest Payment Date is
not also a Distribution Date), assuming 30-day months), (ii) the Investor
Servicing Fee, (iii) the product of the Series Percentage with respect to the
Charged-Off Amount and the Charged-Off Amount, and (iv) the Credit Enhancement
Fee, in each case for such Distribution Date.

     "Series Finance Charge Collections" shall mean, with respect to any day or
any Distribution Date or Trust Distribution Date, as applicable, the sum of the
amount of Class Finance Charge Collections for each Class for such day or for
the related Due Period, as applicable.

     "Series Initial Investor Interest" shall mean the aggregate face amount of
Investor Certificates initially authenticated and delivered pursuant to Section
7, as specified in the Series Term Sheet.

     "Series Interest Funding Account" shall have the meaning specified in
Section 8.

                                       22
<PAGE>   33

     "Series Invested Amount" with respect to any Distribution Date, shall mean
the sum of the Class Invested Amounts for each Class of the Series established
hereby on such Distribution Date.

     "Series Investor Interest" with respect to any Distribution Date, shall
mean the sum of the Class Investor Interests for each Class of the Series
established hereby on such Distribution Date.

     "Series Minimum Principal Receivables Balance" shall mean, with respect to
the Series established hereby, on any date of determination the sum of (A) (i)
if a Fixed Principal Allocation Event has not occurred, the Series Investor
Interest on such date of determination, divided by 0.93, (ii) if a Fixed
Principal Allocation Event has occurred but the Fully Funded Date has not
occurred, the Series Investor Interest as of the date of the occurrence of the
Fixed Principal Allocation Event, divided by 0.93 or (iii) on and after the
Fully Funded Date, if any, zero, and (B) (x) the product of (i) the sum of (1)
the amount on deposit in the Series Principal Funding Account on such date of
determination and (2) for any date of determination during (x) the Early
Accumulation Period, if any, the Estimated Principal Distribution Amount for the
next Distribution Date and (y) for any date of determination during the
Accumulation Period, the amount specified in the Master Servicer's notice of its
election to commence the Accumulation Period as the Controlled Accumulation
Amount for such Distribution Date, and (ii) a fraction the numerator of which is
the Estimated Investment Shortfall and the denominator of which is the Estimated
Yield, in each case on such date of determination, divided by (y) 0.93;
provided, however, that Discover Bank on behalf of the Holder of the Seller
Certificate may, upon 30 days' prior notice to the Trustee, the Rating Agencies
and the Credit Enhancement Provider, reduce the Series Minimum Principal
Receivables Balance by increasing the divisors set forth above, subject to the
condition that Discover Bank on behalf of the Holder of the Seller Certificate
shall have been notified by the Rating Agencies that such reduction would not
result in the lowering or withdrawal of the rating of any Class of any Series
then outstanding, and provided, further, that the divisors set forth above may
not be increased to more than 0.98.

     "Series Percentage" shall mean, with respect to any specified category,
with respect to any Distribution Date or Trust Distribution Date, as applicable,
the sum of the Class Percentages with respect to such category for each Class of
the Series established hereby on such Distribution Date or Trust Distribution
Date, as applicable.

     "Series Principal Collections" shall mean, with respect to any day or any
Distribution Date or Trust Distribution Date, as applicable, the sum of the
amount of Class Principal Collections for each Class for such day or for the
related Due Period, as applicable.

     "Series Principal Collections Account" shall have the meaning specified in
Section 8.

     "Series Principal Funding Account" shall mean the Series Principal Funding
Account established pursuant to Section 8. Amounts "on deposit in" the Series
Principal Funding Account shall be deemed to be on deposit for the benefit of
(i) the Class A Certificateholders for the period up to and including the Class
A Expected Final Payment Date or Class A Final Maturity Date, as applicable, and
(ii) if there is a Subordinate Class with respect to Class A, the

                                       23
<PAGE>   34

Class B Certificateholders for the period beginning immediately after the Class
A Expected Final Payment Date or Class A Final Maturity Date, as applicable, and
ending on the Class B Expected Final Payment Date or Class B Final Maturity
Date, as applicable. Amounts "on deposit in" the Series Principal Funding
Account shall be deemed to include amounts invested in Permitted Investments
pursuant to Section 8 unless the context clearly requires otherwise.

     "Series Required Principal Amount" shall mean, for this Series, with
respect to each Distribution Date of the Controlled Liquidation Period or the
Accumulation Period, as applicable, the product of (x) (i) if the related Due
Period does not occur in February, 1.25 or (ii) if the related Due Period occurs
in February, 1.05, and (y) the Controlled Liquidation Amount or the Controlled
Accumulation Amount, as applicable, for such Distribution Date, and with respect
to each other Series that is a member of the same Group as the Series
established hereby, the amount specified in the Series Supplement for such
Series for such Distribution Date.

     "Series Term Sheet" shall mean the Series Term Sheet setting forth the
terms of the Series of Investor Certificates issued hereby, to which this Annex
is attached.

     "Series Termination Date" shall mean the date designated as such in the
Series Term Sheet.

     "Series Yield Collections" shall mean, with respect to any day or any
Distribution Date, as applicable, an amount equal to the product of the Series
Yield Factor and the amount of Series Principal Collections for such day or the
related Due Period, as applicable.

     "Series Yield Factor" shall mean the number identified as such in the
Series Term Sheet, as such number may be changed from time to time pursuant to
Section 25.

     "Shared Credit Enhancement" shall mean Credit Enhancement available for the
benefit of both the Class A Investor Certificates and the Class B Investor
Certificates.

     "Special Payment Date" shall mean each Distribution Date with respect to
the Amortization Period and the Distribution Date related to each Class Expected
Final Payment Date or Class Final Maturity Date, as applicable.

     "Stated Class A Credit Enhancement Amount" shall mean the "stated amount"
with respect to the Class A Cash Collateral Credit Enhancement, as set forth in
the Series Term Sheet.

     "Stated Class B Credit Enhancement Amount" shall mean the "stated amount"
with respect to the Credit Enhancement that is available solely for the benefit
of the Class B Investor Certificates, as set forth in the Series Term Sheet.

     "Stated Shared Credit Enhancement Amount," if applicable, shall mean the
"stated amount" with respect to the shared portion of the Credit Enhancement, as
set forth in the Series Term Sheet.

     "Statement Date" shall mean each date designated as such in the Series Term
Sheet.

                                       24
<PAGE>   35

     "Subclass" with respect to any Class shall mean, if applicable, each
portion of such Class that has a different Certificate Rate or method of
calculating its Certificate Rate.

     "Subordinate Class" shall mean, with respect to any Class, the Class, if
any, identified by the letter of the alphabet next succeeding the letter
designating such Class (e.g., the Subordinate Class with respect to Class A is
Class B).

     "Subordinate Series" shall mean any Series which is subordinated in right
of payment, in whole or in part, pursuant to the Series Supplement with respect
to such Series, to the Series established hereby.

     "Supplemental Credit Enhancement Amount," if applicable, shall have the
meaning set forth in the Series Term Sheet.

     "Supplemental Credit Enhancement Event" shall occur the first time the
long-term debt or deposit rating of Discover Bank or any Additional Seller is
withdrawn or reduced below BBB- by Standard & Poor's.

     "Supplemental Servicing Fee" shall mean, if applicable, with respect to any
Distribution Date, an amount equal to the product of the Supplemental Servicing
Fee Percentage and the Series Investor Interest on the first day of the Due
Period related to such Distribution Date (or in the case of the first
Distribution Date for the Series established hereby, the Series Investor
Interest on the Series Cut-Off Date).

     "Supplemental Servicing Fee Percentage," if applicable, shall mean the
percentage identified as such in the Series Term Sheet.

     "Supplemental Subordinated Amount," if applicable, shall have the meaning
set forth in the Series Term Sheet.

     "Swap Counterparty Rate," if applicable, with respect to any Class Interest
Rate Swap, shall have the meaning specified in the Series Term Sheet.

     "Swap Trust Rate," if applicable, with respect to any Class Interest Rate
Swap, shall have the meaning specified in the Series Term Sheet.

     "Telerate Page 3750," if applicable, shall mean the display page so
designated on the Bridge Telerate, Inc. (or such other rate as may replace that
page on that service for the purpose of displaying comparable rates or prices).

     "Total Available Credit Enhancement Amount" shall mean, with respect to the
first Distribution Date, the Stated Class B Credit Enhancement Amount plus, if
applicable, the Stated Shared Credit Enhancement Amount, and, on each
Distribution Date thereafter, shall mean the Available Class B Credit
Enhancement Amount plus, if applicable, the Available Shared Credit Enhancement
Amount, in each case after all adjustments thereto on the immediately preceding
Distribution Date, and, in each case, as adjusted pursuant to Section 9 on such
Distribution Date.

                                       25
<PAGE>   36

     "Total Maximum Credit Enhancement Amount" shall have the meaning set forth
in the Series Term Sheet.

     "United States" or "U.S." shall mean the United States of America, its
territories and possessions, any State of the United States and the District of
Columbia.

     SECTION 2. Subordination

     (a) Subordination of Certain Classes. If there is a Subordinate Class with
respect to Class A, the Holders of each Class B Investor Certificate, by their
acceptance of such Investor Certificate, hereby subordinate, for the benefit of
the Holders of Class A Investor Certificates, to the extent and in the manner
set forth in Section 9, all of such Investor Certificateholders' right, title
and interest in and to future distributions due on such Holders' Investor
Certificates, but only to the extent of the Available Subordinated Amount.

     (b) No Subordination of Series. The Investor Certificates of the Series
established hereby shall not be subordinated in right of payment to any other
Series, whether currently outstanding or to be issued in the future. One or more
other Series, however, may be subordinated in right of payment to the Series
established hereby, although the Sellers shall have no obligation to issue such
a Subordinate Series. If any Subordinate Series is issued, such Subordinate
Series shall be subordinate in right of payment to the Series established hereby
only to the extent set forth in the Series Supplement with respect to such
Subordinate Series.

     SECTION 3. Representations and Warranties of the Sellers. The
representations and warranties of the Sellers contained in Section 2.04 of the
Pooling and Servicing Agreement and the corresponding sections of any Assignment
are true on and as of the date hereof and/or the date set forth in the Pooling
and Servicing Agreement, as applicable. Each Seller also represents and warrants
to the Trust as of the date hereof that the execution, delivery and performance
of this Series Supplement by such Seller have been duly authorized by all
necessary corporate action, do not require any approval or consent of any
governmental agency or authority, do not and will not conflict with any material
provision of the Certificate of Incorporation or By-Laws of such Seller, do not
and will not conflict with, or result in a breach which would constitute a
material default under, any agreement for borrowed money binding upon or
applicable to it or such of its property which is material to it, or, to the
best of such Seller's knowledge, any law or governmental regulation or court
decree applicable to it or such material property, and this Series Supplement is
the valid, binding and enforceable obligation of such Seller, except as the same
may be limited by receivership, insolvency, reorganization, moratorium or other
laws relating to the enforcement of creditors' rights generally or by general
equity principles.

     SECTION 4. Representations and Warranties of Discover Bank as Master
Servicer and Servicer. The representations and warranties of Discover Bank as
the Master Servicer and as a Servicer contained in Section 3.04 of the Pooling
and Servicing Agreement are true on and as of the date hereof. Discover Bank as
Master Servicer and Servicer also represents and warrants to the Trust as of the
date hereof that the execution, delivery and performance of this Series
Supplement by Discover Bank have been duly authorized by all necessary corporate
action, do

                                       26
<PAGE>   37

not require any approval or consent of any governmental agency or authority, do
not and will not conflict with any material provision of the Certificate of
Incorporation or By-Laws of Discover Bank, do not and will not conflict with, or
result in a breach which would constitute a material default under, any
agreement for borrowed money binding upon or applicable to it or such of its
property which is material to it, or, to the best of Discover Bank's knowledge,
any law or governmental regulation or court decree applicable to it or such
material property, and this Series Supplement is the valid, binding and
enforceable obligation of Discover Bank, except as the same may be limited by
receivership, insolvency, reorganization, moratorium or other laws relating to
the enforcement of creditors' rights generally or by general equity principles.

     SECTION 5. Representations and Warranties of Other Servicers. The
representations and warranties of each Servicer (other than Discover Bank), if
any, contained in Section 3.05 of the Pooling and Servicing Agreement are true
and correct on and as of the date hereof. Each such Servicer also represents and
warrants to the Trust as of the date hereof that the execution, delivery and
performance of this Series Supplement by such Servicer have been duly authorized
by all necessary corporate action, do not require any approval or consent of any
governmental agency or authority, do not and will not conflict with any material
provision of the Certificate of Incorporation or By-Laws of such Servicer, do
not and will not conflict with, or result in a breach which would constitute a
material default under, any agreement for borrowed money binding upon or
applicable to it or such of its property which is material to it, or, to the
best of such Servicer's knowledge, any law or governmental regulation or court
decree applicable to it or such material property, and this Series Supplement is
the valid, binding and enforceable obligation of such Servicer, except as the
same may be limited by receivership, insolvency, reorganization, moratorium or
other laws relating to the enforcement of creditors' rights generally or by
general equity principles.

     SECTION 6. Representations and Warranties of the Trustee. The
representations and warranties of the Trustee contained in Section 11.16 of the
Pooling and Servicing Agreement are true on and as of the date hereof. The
Trustee also represents and warrants as of the date hereof that the Trustee has
full power, authority and right to execute, deliver and perform this Series
Supplement, and has taken all necessary action to authorize the execution,
delivery and performance by it of this Series Supplement, and this Series
Supplement has been duly executed and delivered by the Trustee.

     SECTION 7. Authentication of Certificates. Pursuant to the request of the
Sellers, the Trustee shall cause Investor Certificates in authorized
denominations evidencing the Series established hereby to be duly authenticated
and delivered as of the Series Closing Date to or upon the order of the Sellers
pursuant to Section 6.06 of the Pooling and Servicing Agreement.

     SECTION 8. Establishment and Administration of Investor Accounts and the
Credit Enhancement Account.

     (a) The Series Distribution Account, Series Collections Account and Series
Principal Collections Account. The Trustee, for the benefit of the
Certificateholders, shall cause to be established and maintained in the name of
the Trust, with the corporate trust department of an

                                       27
<PAGE>   38

office or branch of either the Trustee or a Qualified Institution, three
non-interest bearing segregated demand deposit accounts (the "Series
Distribution Account"; for Collections, the "Series Collections Account"; and
for Series Principal Collections and certain other amounts deposited therein
pursuant to Section 9, the "Series Principal Collections Account") bearing a
designation clearly indicating that the funds deposited therein are held for the
benefit of the Certificateholders. The Trust shall possess all right, title and
interest in all funds on deposit in the Series Distribution Account, the Series
Collections Account and the Series Principal Collections Account; provided,
however, that all interest and earnings (less investment expenses) on funds on
deposit in any such account shall be paid to the Holder of the Seller
Certificate in accordance with Section 4.02(c) of the Pooling and Servicing
Agreement. Pursuant to authority granted to it pursuant to Section 3.01(b) of
the Pooling and Servicing Agreement, the Master Servicer shall have the
revocable power to instruct the Trustee to withdraw funds from the Series
Distribution Account, the Series Collections Account and the Series Principal
Collections Account for the purpose of carrying out the duties of the Master
Servicer hereunder. The Master Servicer at all times shall maintain accurate
records reflecting each transaction in the Series Distribution Account, the
Series Collections Account and the Series Principal Collections Account. The
Paying Agent also shall have the revocable authority to make withdrawals from
the Series Distribution Account.

     (b) Reallocation Accounts. The Trustee, for the benefit of the
Certificateholders, shall cause to be established and maintained in the name of
the Trust, with the corporate trust department of an office or branch of either
the Trustee or a Qualified Institution, two non-interest bearing segregated
trust accounts for the Group of which the Series established hereby is a member
(for reallocated Series Finance Charge Collections, Series Yield Collections,
Class A Investment Income and Series Additional Funds, the "Group Finance Charge
Collections Reallocation Account," and for reallocated Series Principal
Collections and other amounts deposited into the Series Principal Collections
Account pursuant to Section 9, the "Group Principal Collections Reallocation
Account") bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the Certificateholders. The Trust shall
possess all right, title and interest in all funds on deposit from time to time
in the Group Finance Charge Collections Reallocation Account and the Group
Principal Collections Reallocation Account and in all proceeds thereof. Pursuant
to authority granted to it pursuant to Section 3.01(b) of the Pooling and
Servicing Agreement, the Master Servicer shall have the revocable power to
instruct the Trustee to withdraw funds from the Group Finance Charge Collections
Reallocation Account and the Group Principal Collections Reallocation Account
for the purpose of carrying out the duties of the Master Servicer hereunder. The
Master Servicer at all times shall maintain accurate records reflecting each
transaction in the Group Finance Charge Collections Reallocation Account and in
the Group Principal Collections Reallocation Account.

     (c) The Series Principal Funding Account. The Trustee, for the benefit of
the Certificateholders, shall establish and maintain or cause to be established
and maintained in the name of the Trust, with the corporate trust department of
an office or branch of either the Trustee or a Qualified Institution, a
non-interest bearing segregated trust account (for principal to be paid to
Investor Certificateholders of this Series, the "Series Principal Funding
Account") bearing a designation clearly indicating that the funds deposited
therein are held for the benefit of the

                                       28
<PAGE>   39

Certificateholders. The Trust shall possess all right, title and interest in all
funds on deposit from time to time in the Series Principal Funding Account and
in all proceeds thereof. The Series Principal Funding Account shall be under the
sole dominion and control of the Trustee for the benefit of the
Certificateholders. Pursuant to authority granted to it pursuant to Section
3.01(b) of the Pooling and Servicing Agreement, the Master Servicer shall have
the revocable power to withdraw funds from the Series Principal Funding Account
for the purpose of carrying out the duties of the Master Servicer hereunder. The
Master Servicer at all times shall maintain accurate records reflecting each
transaction in the Series Principal Funding Account. The Paying Agent also shall
have the revocable authority to make withdrawals from the Series Principal
Funding Account.

     Funds on deposit in the Series Principal Funding Account shall be invested
in Permitted Investments by the Trustee (or, at the direction of the Trustee, by
the Master Servicer on behalf of the Trustee) at the direction of Discover Bank
on behalf of the Holder of the Seller Certificate, as set forth below. Any
Permitted Investment with a stated maturity shall mature on or prior to the
following Distribution Date. On or before the occurrence of the first
Distribution Date with respect to the Accumulation Period or Controlled
Liquidation Period, as applicable (and on or before any subsequent Distribution
Date in which the notice previously given is no longer correct or valid), the
Master Servicer shall notify the Trustee of the amount of Certificate Principal
to be deposited into the Series Principal Funding Account on such Distribution
Date, and Discover Bank on behalf of the Holder of the Seller Certificate shall
direct the Trustee in writing to invest the funds that will be on deposit in the
Series Principal Funding Account on such Distribution Date (including any funds
previously invested in Permitted Investments that will be available for
reinvestment on such Distribution Date) in Permitted Investments. Discover
Bank's notice to the Trustee shall specifically identify each such Permitted
Investment (including its principal amount and maturity). In addition, Discover
Bank on behalf of the Holder of the Seller Certificate shall from time to time
provide written notice to the Trustee directing the Trustee to reinvest funds
representing principal, interest or other investment income received by it with
respect to such Permitted Investments (whether upon maturity or otherwise) in
additional Permitted Investments. In the event that Discover Bank on behalf of
the Holder of the Seller Certificate fails to direct the Trustee to invest or
reinvest any funds that are deposited in the Series Principal Funding Account or
that are received by it with respect to Permitted Investments by 2:00 p.m. on
the date such funds are available for investment, the Trustee shall use
reasonable efforts to invest such funds overnight in securities represented by
instruments in bearer or registered form which evidence obligations issued or
fully guaranteed, as to timely payment, by the United States of America or any
instrumentality or agency thereof when such obligations are backed by the full
faith and credit of the United States of America until such time as the Trustee
receives the required notice from Discover Bank; provided, however, that the
Trustee shall have no liability for the failure to invest such funds if the
Trustee has employed reasonable efforts to make such investment.

     (d) The Series Interest Funding Account. The Trustee, for the benefit of
the Certificateholders, shall establish and maintain or cause to be established
and maintained in the name of the Trust, in the corporate trust department of an
office or branch of either the Trustee or a Qualified Institution, a
non-interest bearing segregated trust account (for payment of Certificate

                                       29
<PAGE>   40

Interest, the "Series Interest Funding Account") bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Certificateholders. The Trust shall possess all right, title and interest in all
funds on deposit from time to time in the Series Interest Funding Account and in
all proceeds thereof. Pursuant to authority granted to it pursuant to Section
3.01(b) of the Pooling and Servicing Agreement, the Master Servicer shall have
the revocable power to instruct the Trustee to withdraw funds from the Series
Interest Funding Account for the purpose of carrying out the duties of the
Master Servicer hereunder. Any funds on deposit in the Series Interest Funding
Account for more than one Business Day shall be invested in Permitted
Investments pursuant to Section 4.02(c) of the Pooling and Servicing Agreement.
The Master Servicer at all times shall maintain accurate records reflecting each
transaction in the Series Interest Funding Account. The Paying Agent shall also
have the revocable authority to make withdrawals from the Series Interest
Funding Account.

     (e) The Credit Enhancement Account. If the Credit Enhancement is Funded
Credit Enhancement, the Master Servicer, for the benefit of the
Certificateholders and the Credit Enhancement Provider, shall establish and
maintain or cause to be established and maintained in the name of the Trust,
with the corporate trust department of an office or branch of either the Trustee
or a Qualified Institution, a non-interest bearing segregated trust account (the
"Credit Enhancement Account") bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Certificateholders and
the Credit Enhancement Provider. The Trust shall possess all right, title and
interest in all funds on deposit from time to time in the Credit Enhancement
Account and in all proceeds thereof. The Credit Enhancement Account shall be
under the sole dominion and control of the Trustee as the administrator of the
Credit Enhancement for the benefit of the Certificateholders and the Credit
Enhancement Provider; provided, however, the Master Servicer may make Credit
Enhancement Drawings pursuant to, and for the purposes set forth in, Section 9.
The interest of the Credit Enhancement Provider in the Credit Enhancement
Account shall be subordinated to the interests of the Certificateholders to the
extent provided herein and in the Credit Enhancement Agreement. The Trustee, at
the direction of the Master Servicer, shall (i) on the Series Closing Date,
deposit into the Credit Enhancement Account an amount equal to the sum of the
Stated Class A Credit Enhancement Amount, the Stated Shared Credit Enhancement
Amount, and the Stated Class B Credit Enhancement Amount, as applicable (such
amounts to be funded by the Credit Enhancement Provider pursuant to the Credit
Enhancement Agreement) and (ii) make withdrawals from, and deposits to, the
Credit Enhancement Account from time to time in the amounts and for the purposes
set forth in this Series Supplement. The Credit Enhancement Provider shall not
be entitled to reimbursement from the assets of the Trust for any withdrawals
from the Credit Enhancement Account except as specifically provided in this
Series Supplement. The Master Servicer at all times shall maintain accurate
records reflecting each transaction in the Credit Enhancement Account.

     Funds on deposit in the Credit Enhancement Account shall be invested in
Permitted Investments by the Trustee as administrator of the Credit Enhancement
at the direction of the Master Servicer, as set forth below. Any Permitted
Investment with a stated maturity shall mature on or prior to the following
Distribution Date or such longer period as will not result in the lowering or
withdrawal of the rating of any Class of any Series then outstanding by the

                                       30
<PAGE>   41

Rating Agencies and any funds received with respect to the maturity of a
Permitted Investment shall be available in sufficient time to allow for any
payments to be made to the Investor Certificateholders on such Distribution
Date. The Master Servicer's notice to the Trustee shall specifically identify
each such Permitted Investment (including its principal amount and maturity). In
addition, the Master Servicer shall from time to time provide written notice to
the Trustee directing the Trustee to reinvest funds representing principal,
interest or other investment income received by it with respect to such
Permitted Investments (whether upon maturity or otherwise) in additional
Permitted Investments. In the event that the Master Servicer fails to direct the
Trustee to invest or reinvest any funds that are deposited in the Credit
Enhancement Account or that are received by it with respect to Permitted
Investments by 2:00 p.m. on the date such funds are available for investment,
the Trustee shall use reasonable efforts to invest such funds overnight in
securities represented by instruments in bearer or registered form which
evidence obligations issued or fully guaranteed, as to timely payment, by the
United States of America or any instrumentality or agency thereof when such
obligations are backed by the full faith and credit of the United States of
America until such time as the Trustee receives the required notice from the
Master Servicer; provided, however, that the Trustee shall have no liability for
the failure to invest such funds if the Trustee has employed reasonable efforts
to make such investment.

     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 Credit Enhancement Account shall be paid to the Trustee as
administrator of the Credit Enhancement for application in accordance with the
provisions of the Credit Enhancement Agreement. For purposes of determining the
availability of funds or the balances in the Credit Enhancement Account, all
investment earnings on such funds shall be deemed not to be available or on
deposit. If, on any Distribution Date, after giving effect to all other deposits
to and withdrawals from the Credit Enhancement Account as of such Distribution
Date, the amount on deposit in the Credit Enhancement Account is greater than
the Total Maximum Credit Enhancement Amount, then the excess of the amount on
deposit over the Total Maximum Credit Enhancement Amount shall be withdrawn from
the Credit Enhancement Account and paid to the Trustee as administrator of the
Credit Enhancement for application in accordance with the provisions of the
Credit Enhancement Agreement.

     Upon the earliest to occur of (i) the termination of the Trust, (ii) the
Series Termination Date and (iii) the day on which the Class Invested Amount for
each Class of the Series established hereby is paid in full, and after payment
of all amounts to be paid on such day from the Credit Enhancement Account to or
for the benefit of Investor Certificateholders of the Series established hereby,
all amounts remaining on deposit in the Credit Enhancement Account shall be
withdrawn from such account and paid to the Trustee as administrator of the
Credit Enhancement for application in accordance with the provisions of the
Credit Enhancement Agreement.

     (f) The Interest Rate Swap Account. The Trustee shall establish and
maintain or cause to be established and maintained in the name of the Trust, in
the corporate trust department of an office or branch of either the Trustee or a
Qualified Institution, a non-interest bearing

                                       31
<PAGE>   42

segregated trust account (for payment of Net Swap Payments, the "Interest Rate
Swap Account"). The Trust shall possess all right, title and interest in all
funds on deposit from time to time in the Interest Rate Swap Account and in all
proceeds thereof. Pursuant to authority granted to it pursuant to Section
3.01(b) of the Pooling and Servicing Agreement, the Master Servicer shall have
the revocable power to instruct the Trustee to withdraw funds from the Interest
Rate Swap Account for the purpose of carrying out the duties of the Master
Servicer hereunder. Any funds on deposit in the Interest Rate Swap Account for
more than one Business Day shall be invested in Permitted Investments pursuant
to Section 4.02(c) of the Pooling and Servicing Agreement. The Master Servicer
at all times shall maintain accurate records reflecting each transaction in the
Interest Rate Swap Account. The Paying Agent shall also have the revocable
authority to make withdrawals from the Interest Rate Swap Account.

     (g) Transfer of Investor Accounts. If at any time any of the Investor
Accounts established in Sections 8(a) through 8(f) is not being held by the
Trustee and the institution holding such Investor Account ceases to be a
Qualified Institution, the Master Servicer shall within 10 Business Days
establish a new Investor Account (meeting any conditions specified in this
Series Supplement with respect to such Investor Account) with a Qualified
Institution and transfer any cash and/or any investments to such new Investor
Account.

     SECTION 9. Allocations of Collections

     (a) Deposits to Series Collections Account. On or before each Distribution
Date, the Master Servicer shall direct the Trustee in writing to withdraw from
the Group Collections Account and deposit into the Series Collections Account an
amount equal to the sum of the Series Finance Charge Collections and the Series
Principal Collections for the related Due Period. On or before each Distribution
Date, the Class Additional Funds for each Class of the Series established hereby
shall also have been deposited into the Series Collections Account pursuant to
Section 4.03(e) of the Pooling and Servicing Agreement.

     (b) Deposits During the Revolving Period, Early Accumulation Period,
Accumulation Period, Controlled Liquidation Period or Amortization Period, as
Applicable. The Master Servicer shall, on or before each Distribution Date
during the Revolving Period, the Early Accumulation Period, the Accumulation
Period, the Controlled Liquidation Period or any Amortization Period, as
applicable, direct the Trustee in writing that funds be paid or deposited in the
following amounts, to the extent such funds are available and in the order of
priority specified, to the account or Person indicated, in each case as set
forth below; provided, however, that if the Credit Enhancement is not Funded
Credit Enhancement, then no amounts (other than any Credit Enhancement Fees or
any amounts paid to the Trustee as Administrator of the Credit Enhancement in
respect of the Total Available Credit Enhancement Amount) that are measured or
determined by reference to Class Excess Servicing for any Class, Series Excess
Servicing or the amount on deposit at any time in the Group Finance Charge
Collections Reallocation Account shall be paid or deposited if, on the related
Drawing Date, the Credit Enhancement Provider is unable to pay its debts as they
become due.

                                       32
<PAGE>   43

          (1)  During the Accumulation Period or the Early Accumulation Period,
if any, or on the first Distribution Date of the Amortization Period, if
applicable, an amount equal to the amount of Class Investment Income for the
related Due Period for any Class shall be withdrawn from the Series Principal
Funding Account and deposited into the Series Collections Account.

          (2)  With respect to Class A, an amount equal to the lesser of

               (x)  the Class A Required Amount and

               (y)  the sum of (1) Class A Finance Charge Collections, (2) Class
                    A Yield Collections, (3) Class A Investment Income, if
                    applicable, and (4) Class A Additional Funds

shall be withdrawn from the Series Collections Account and deposited into the
Series Distribution Account. The amount by which the Class A Required Amount
exceeds the amount of such deposit shall be the "Class A Required Amount
Shortfall."

          (3)  With respect to Class A, an amount equal to the lesser of

               (x)  the Class A Required Amount Shortfall and

               (y)  funds, if any, available to pay such Class A Required Amount
                    Shortfall from funds initially allocated to any Subordinate
                    Series

shall be deposited into the Series Distribution Account. The Class A Required
Amount Shortfall shall be reduced by the amount of such deposit.

          (4)  With respect to Class A, an amount equal to the lesser of

               (x)  the Class A Cumulative Investor Charged-Off Amount and

               (y)  Class A Excess Servicing

shall be withdrawn from the Series Collections Account and deposited into the
Series Principal Collections Account. The Class A Cumulative Investor
Charged-Off Amount, Series Excess Servicing and the Available Subordinated
Amount shall be reduced by the amount of such deposit.

          (5)  An amount equal to the lesser of

               (x)  the Class A Cumulative Investor Charged-Off Amount and

               (y)  funds, if any, available to pay such Class A Cumulative
                    Investor Charged-Off Amount from funds initially allocated
                    to any Subordinate Series

                                       33
<PAGE>   44

shall be deposited into the Series Principal Collections Account. The Class A
Cumulative Investor Charged-Off Amount shall be reduced by the amount of such
deposit.

          (6)  If there is a Subordinate Class with respect to Class A, an
amount equal to the least of

               (x)  the Class A Required Amount Shortfall,

               (y)  the Available Subordinated Amount, and

               (z)  Class B Available Collections

shall be withdrawn from the Series Collections Account and deposited into the
Series Distribution Account. The Class B Subordinated Payment shall be increased
by, and the Class A Required Amount Shortfall, the Available Subordinated Amount
and Class B Available Collections shall be decreased by, the amount of such
deposit.

          (7)  If there is a Subordinate Class with respect to Class A, an
amount equal to the least of

               (x)  the Class A Cumulative Investor Charged-Off Amount,

               (y)  the Available Subordinated Amount, and

               (z)  Class B Available Collections

shall be withdrawn from the Series Collections Account and deposited into the
Series Principal Collections Account. The Class B Subordinated Payment shall be
increased by, and the Class A Cumulative Investor Charged-Off Amount, the
Available Subordinated Amount and Class B Available Collections shall be reduced
by, the amount of such deposit.

          (8)  If there is a Subordinate Class with respect to Class A, an
amount equal to the lesser of

               (x)  the Class B Required Amount and

               (y)  the positive difference, if any, between

                    (1)  the amount of Class B Available Finance Charge
                         Collections, and

                    (2)  the Class B Subordinated Payment

shall be withdrawn from the Series Collections Account and deposited into the
Series Distribution Account. The amount by which the Class B Required Amount
exceeds the amount of such deposit shall be the "Class B Required Amount
Shortfall."

                                       34
<PAGE>   45

          (9)  If there is a Subordinate Class with respect to Class A, an
amount equal to the lesser of

               (x)  the Class B Required Amount Shortfall and

               (y)  funds, if any, available to pay such Class B Required Amount
                    Shortfall from funds initially allocated to any Subordinate
                    Series

shall be deposited into the Series Distribution Account. The Class B Required
Amount Shortfall shall be reduced by the amount of such deposit.

          (10) If there is a Subordinate Class with respect to Class A, an
amount equal to the lesser of

               (x)  the Class B Cumulative Investor Charged-Off Amount and

               (y)  funds, if any, available to pay such Class B Cumulative
                    Investor Charged-Off Amount from funds initially allocated
                    to any Subordinate Series

shall be deposited into the Series Principal Collections Account. The Class B
Cumulative Investor Charged-Off Amount shall be reduced by the amount of such
deposit.

          (11) If there is a Subordinate Class with respect to Class A, an
amount equal to the least of

               (x)  the Class A Required Amount Shortfall,

               (y)  the Available Subordinated Amount, and

               (z)  Series Excess Servicing

shall be withdrawn from the Series Collections Account and deposited into the
Series Distribution Account. The Class A Required Amount Shortfall, the
Available Subordinated Amount and the amount of Series Excess Servicing shall be
reduced by the amount of such deposit.

          (12) If there is a Subordinate Class with respect to Class A, an
amount equal to the least of

               (x)  the Class A Cumulative Investor Charged-Off Amount,

               (y)  the Available Subordinated Amount, and

               (z)  Series Excess Servicing

                                       35
<PAGE>   46

shall be withdrawn from the Series Collections Account and deposited into the
Series Principal Collections Account. The Class A Cumulative Investor
Charged-Off Amount, the Available Subordinated Amount and the amount of Series
Excess Servicing shall be reduced by the amount of such deposit. If the Class A
Cumulative Investor Charged-Off Amount is greater than zero after such
reduction, the Class A Cumulative Investor Charged-Off Amount shall be further
reduced by an amount equal to the least of

               (x)  the Class A Cumulative Investor Charged-Off Amount,

               (y)  the Available Subordinated Amount, and

               (z)  the Class B Investor Interest.

The Class A Cumulative Investor Charged-Off Amount, the Available Subordinated
Amount and the Class B Investor Interest shall each be reduced by such least
amount, and the Class B Cumulative Investor Charged-Off Amount shall be
increased by such amount.

          (13) If there is a Subordinate Class with respect to Class A, an
amount equal to the lesser of

               (x)  the Class B Required Amount Shortfall and

               (y)  Series Excess Servicing

shall be withdrawn from the Series Collections Account and deposited into the
Series Distribution Account. The Class B Required Amount Shortfall and the
amount of Series Excess Servicing shall be reduced by the amount of such
deposit.

          (14) If there is a Subordinate Class with respect to Class A, an
amount equal to the lesser of

               (x)  the Class B Cumulative Investor Charged-Off Amount and

               (y)  Series Excess Servicing

shall be withdrawn from the Series Collections Account and deposited into the
Series Principal Collections Account. The Class B Cumulative Investor
Charged-Off Amount and the amount of Series Excess Servicing shall be reduced by
the amount of such deposit.

          (15) On each Distribution Date prior to the Fully Funded Date, if any,
an amount equal to the lesser of

               (x)  the amount by which the Total Available Credit Enhancement
                    Amount is less than the Total Maximum Credit Enhancement
                    Amount and

               (y)  Series Excess Servicing

                                       36
<PAGE>   47

shall be withdrawn from the Series Collections Account and paid to the Trustee
as administrator of the Credit Enhancement for application in accordance with
the provisions of the Credit Enhancement Agreement. If there is Shared Credit
Enhancement or Class A Cash Collateral Credit Enhancement, such deposit shall
increase the Available Shared Credit Enhancement Amount or Available Class A
Credit Enhancement Amount, until the Available Shared Credit Enhancement Amount
or Available Class A Credit Enhancement Amount, as applicable, equals the
Maximum Shared Credit Enhancement Amount or the Maximum Class A Credit
Enhancement Amount, as applicable. If there is a Subordinate Class with respect
to Class A, any remaining portion of such deposit shall increase the Available
Class B Credit Enhancement Amount until the Available Class B Credit Enhancement
Amount equals the Maximum Class B Credit Enhancement Amount. The Total Available
Credit Enhancement Amount shall be increased by, and the amount of Series Excess
Servicing shall be decreased by, the amount of such deposit.

          (16) If there is Shared Credit Enhancement or Class A Cash Collateral
Credit Enhancement, and if the Class A Required Amount Shortfall is greater than
zero, the Master Servicer, on the related Drawing Date, shall make a Credit
Enhancement Drawing in an amount equal to the lesser of

               (x)  the Class A Required Amount Shortfall and

               (y)  the Available Shared Credit Enhancement Amount or the
                    Available Class A Credit Enhancement Amount, as applicable,

and such amount shall be deposited into the Series Distribution Account. The
Class A Required Amount Shortfall and the Available Shared Credit Enhancement
Amount or Available Class A Credit Enhancement Amount, as applicable, shall be
reduced by the amount of such deposit.

          (17) If there is Shared Credit Enhancement or Class A Cash Collateral
Credit Enhancement, and if the Class A Cumulative Investor Charged-Off Amount is
greater than zero, the Master Servicer, on the related Drawing Date, shall make
a Credit Enhancement Drawing in an amount equal to the lesser of

               (x)  the Class A Cumulative Investor Charged-Off Amount and

               (y)  the Available Shared Credit Enhancement Amount or the
                    Available Class A Credit Enhancement Amount, as applicable,

and such amount shall be deposited into the Series Principal Collections
Account. The Class A Cumulative Investor Charged-Off Amount and the Available
Shared Credit Enhancement Amount or Available Class A Credit Enhancement Amount,
as applicable, shall be reduced by the amount of such deposit.

          (18) If there is Shared Credit Enhancement, and if there is a
Subordinate Class with respect to Class A, and if the Class B Required Amount
Shortfall is greater than zero, the

                                       37
<PAGE>   48

Master Servicer, on the related Drawing Date, shall make a Credit Enhancement
Drawing in an amount equal to the lesser of

               (x)  the Class B Required Amount Shortfall and

               (y)  the Available Shared Credit Enhancement Amount

and such amount shall be deposited into the Series Distribution Account. The
Class B Required Amount Shortfall and the Available Shared Credit Enhancement
Amount shall be reduced by the amount of such deposit.

          (19) If there is Shared Credit Enhancement, and if there is a
Subordinate Class with respect to Class A, and if the Class B Cumulative
Investor Charged-Off Amount is greater than zero, the Master Servicer, on the
related Drawing Date, shall make a Credit Enhancement Drawing in an amount equal
to the lesser of

               (x)  the Class B Cumulative Investor Charged-Off Amount and

               (y)  the Available Shared Credit Enhancement Amount

and such amount shall be deposited into the Series Principal Collections
Account. The Class B Cumulative Investor Charged-Off Amount and the Available
Shared Credit Enhancement Amount shall be reduced by the amount of such deposit.

          (20) If there is Subordinate Class with respect to Class A, and if the
Class B Required Amount Shortfall is greater than zero, the Master Servicer, on
the related Drawing Date, shall make a Credit Enhancement Drawing in an amount
equal to the lesser of

               (x)  the Class B Required Amount Shortfall and

               (y)  the Available Class B Credit Enhancement Amount

and such amount shall be deposited into the Series Distribution Account. The
Class B Required Amount Shortfall and the Available Class B Credit Enhancement
Amount shall be reduced by the amount of such deposit.

          (21) If there is a Subordinate Class with respect to Class A, and if
the Class B Cumulative Investor Charged-Off Amount is greater than zero, the
Master Servicer, on the related Drawing Date, shall make a Credit Enhancement
Drawing in an amount equal to the lesser of

               (x)  the Class B Cumulative Investor Charged-Off Amount and

               (y)  the Available Class B Credit Enhancement Amount

                                       38
<PAGE>   49

and such amount shall be deposited into the Series Principal Collections
Account. The Class B Cumulative Investor Charged-Off Amount and the Available
Class B Credit Enhancement Amount shall be reduced by the amount of such
deposit.

          (22) An amount equal to the lesser of

               (x)  the Credit Enhancement Fee and

               (y)  Series Excess Servicing

shall be withdrawn from the Series Collections Account and paid to the Trustee
as the administrator of the Credit Enhancement for application in accordance
with the provisions of the Credit Enhancement Agreement. The amount of Series
Excess Servicing shall be reduced by the amount of such payment.

          (23) An amount equal to the Monthly Swap Deposit, if any, up to the
remaining amount of Series Excess Servicing, shall be withdrawn from the Series
Collections Account and deposited into the Interest Rate Swap Account.

          (24) An amount equal to the amount of Series Excess Servicing shall be
withdrawn from the Series Collections Account and deposited into the Group
Finance Charge Collections Reallocation Account.

          (25) The allocations set forth in clauses (25)(A) and (25)(B) shall be
made, first, with respect to Class A, and then, if there is a Subordinate Class
with respect to Class A, the allocations set forth in clauses (25)(A) and
(25)(B) shall be made with respect to Class B, to the extent that funds are
available pursuant to this clause (25):

          (A)  An amount equal to the lesser of

               (x)  the Class Required Amount Shortfall and

               (y)  the product of

                    (1)  a fraction the numerator of which is the Class Required
                         Amount Shortfall and the denominator of which is the
                         sum of the Class Required Amount Shortfalls for all
                         Classes designated by the same letter of the alphabet
                         of all Series in the Group to which the Series
                         established hereby belongs (after giving effect to
                         provisions in the applicable Series Supplements
                         substantially similar to the clauses preceding this
                         clause (25)) and

                    (2)  the amount on deposit in the Group Finance Charge
                         Collections Reallocation Account before any withdrawals
                         therefrom with respect to any other Series pursuant to
                         a comparable clause in the applicable Series
                         Supplements,

                                       39
<PAGE>   50

shall be withdrawn from the Group Finance Charge Collections Reallocation
Account and deposited into the Series Distribution Account. The Class Required
Amount Shortfall shall be reduced by the amount of such deposit. The Available
Subordinated Amount shall be increased by the amount of any such deposit that
reduces the Class B Required Amount Shortfall.

          (B)  An amount equal to the lesser of

               (x)  the Class Cumulative Investor Charged-Off Amount and

               (y)  the product of

                    (1)  a fraction the numerator of which is the Class
                         Cumulative Investor Charged-Off Amount and the
                         denominator of which is the sum of the Class Cumulative
                         Investor Charged-Off Amounts for all Classes designated
                         by the same letter of the alphabet of all Series in the
                         Group to which the Series established hereby belongs
                         (after giving effect to provisions in the applicable
                         Series Supplements substantially similar to the clauses
                         preceding this clause (25)) and

                    (2)  the amount on deposit in the Group Finance Charge
                         Collections Reallocation Account before any withdrawals
                         therefrom with respect to any other Series pursuant to
                         a comparable clause in the applicable Series
                         Supplements,

shall be withdrawn from the Group Finance Charge Collections Reallocation
Account and deposited into the Series Principal Collections Account. The Class
Cumulative Investor Charged-Off Amount shall be reduced by the amount of such
deposit. The Available Subordinated Amount shall be increased by the amount of
any such deposit that reduces the Class B Cumulative Investor Charged-Off
Amount.

          (C)  After the allocations set forth in clauses (25)(A) and (25)(B)
are made with respect to Class A and Class B, then, if there are one or more
Subordinate Classes other than Class B, the allocations set forth in clauses
(25)(A) and (25)(B) shall be made with respect to each other such Class, in
alphabetical order, to the extent that funds are available pursuant to this
clause (25).

          (26) The allocations set forth in clauses (26)(A) and (26)(B) shall be
made, to the extent that funds are available pursuant to this clause (26):

          (A)  If there is Shared Credit Enhancement or Class A Cash Collateral
Credit Enhancement, an amount equal to the lesser of

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<PAGE>   51

               (x)  the amount by which the Available Shared Credit Enhancement
                    Amount or the Available Class A Credit Enhancement Amount,
                    as applicable, is less than the Maximum Shared Credit
                    Enhancement Amount or the Maximum Class A Credit Enhancement
                    Amount, as applicable and

               (y)  the product of

                    (1)  a fraction, the numerator of which is the amount by
                         which the Available Shared Credit Enhancement Amount or
                         the Available Class A Credit Enhancement Amount, as
                         applicable, is less than the Maximum Shared Credit
                         Enhancement Amount or the Maximum Class A Credit
                         Enhancement Amount, as applicable, and the denominator
                         of which is the sum of, for each Series in the Group of
                         which the Series established hereby is a member, the
                         amount by which the Available Shared Credit Enhancement
                         Amount or the Available Class A Credit Enhancement
                         Amount, as applicable, for such Series is less than the
                         Maximum Shared Credit Enhancement Amount or the Maximum
                         Class A Credit Enhancement Amount, as applicable, for
                         such Series (after giving effect to provisions in the
                         applicable Series Supplements substantially similar to
                         the clauses preceding this clause (26)) and

                    (2)  the amount on deposit in the Group Finance Charge
                         Collections Reallocation Account before any withdrawals
                         therefrom with respect to any other Series pursuant to
                         a comparable clause in the applicable Series
                         Supplements,

shall be withdrawn from the Group Finance Charge Collections Reallocation
Account and paid to the Trustee as administrator of the Credit Enhancement for
application in accordance with the provisions of the Credit Enhancement
Agreement. Such deposit shall increase the Available Shared Credit Enhancement
Amount or the Available Class A Credit Enhancement Amount, as applicable.

          (B)  If there is a Subordinate Class with respect to Class A, an
amount equal to the lesser of

               (x)  the amount by which the Available Class B Credit Enhancement
                    Amount is less than the Maximum Class B Credit Enhancement
                    Amount and

               (y)  the product of

                                       41
<PAGE>   52

                    (1)  a fraction, the numerator of which is the amount by
                         which the Available Class B Credit Enhancement Amount
                         is less than the Maximum Class B Credit Enhancement
                         Amount and the denominator of which is the sum of, for
                         each Series in the Group of which the Series
                         established hereby is a member, the amount by which the
                         Available Class B Credit Enhancement Amount for such
                         Series is less than the Maximum Class B Credit
                         Enhancement Amount for such Series (after giving effect
                         to provisions in the applicable Series Supplements
                         substantially similar to the clauses preceding this
                         clause (26)) and

                    (2)  the amount on deposit in the Group Finance Charge
                         Collections Reallocation Account before any withdrawals
                         therefrom with respect to any other Series pursuant to
                         a comparable clause in the applicable Series
                         Supplements,

shall be withdrawn from the Group Finance Charge Collections Reallocation
Account and paid to the Trustee as administrator of the Credit Enhancement for
application in accordance with the provisions of the Credit Enhancement
Agreement. Each of the Available Class B Credit Enhancement Amount and the
Available Subordinated Amount shall be increased by the amount of such deposit.

          (27) After all allocations from the Group Finance Charge Collections
Reallocation Account to be made pursuant to any other Series Supplement for any
Series that is a member of the same Group of which the Series established hereby
is a member have been made, an amount equal to the product of (x) a fraction the
numerator of which shall be the Series Investor Interest and the denominator of
which shall be the sum of the Series Investor Interests for each Series that is
a member of the same Group as the Series established hereby (including the
Series established hereby) and (y) the amount remaining on deposit in the Group
Finance Charge Collections Reallocation Account shall be withdrawn from the
Group Finance Charge Collections Reallocation Account and paid to the Trustee as
administrator of the Credit Enhancement for application in accordance with the
provisions of the Credit Enhancement Agreement. Amounts remaining on deposit in
the Group Finance Charge Collections Reallocation Account shall be withdrawn
from such account and allocated pursuant to the provisions of the Series
Supplements for each other Series that is a member of the same Group as the
Series established hereby.

          (28) Any amounts remaining on deposit in the Series Collections
Account shall be withdrawn from the Series Collections Account and deposited
into the Series Principal Collections Account.

          (29) The Net Swap Receipt, to the extent paid to the Trustee by the
Interest Rate Swap Counterparty pursuant to the Class Interest Rate Swap, shall
be deposited in the Series Collections Account.

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<PAGE>   53

          (30) Any amount remaining on deposit in the Series Collections Account
will be withdrawn from the Series Collections Account and paid to the Holder of
the Seller Certificate.

          (31) Unless the Distribution Date is a Distribution Date in the
Revolving Period, the lesser of

               (x)  the Principal Distribution Amount and

               (y)  the amount on deposit in the Series Principal Collections
                    Account

shall be withdrawn from the Series Principal Collections Account and deposited
into the Series Principal Funding Account. The amount by which the Principal
Distribution Amount exceeds the amount of such deposit shall be the "Principal
Distribution Amount Shortfall."

          (32) Unless the Distribution Date is a Distribution Date in the
Revolving Period, the lesser of

               (x)  the Principal Distribution Amount Shortfall and

               (y)  funds, if any, available to pay such Principal Distribution
                    Amount Shortfall from funds initially allocated to any
                    Subordinate Series

shall be deposited into the Series Principal Funding Account. The Principal
Distribution Amount Shortfall shall be reduced by the amount of such deposit.

          (33) Any amounts remaining on deposit in the Series Principal
Collections Account shall be withdrawn from the Series Principal Collections
Account and be deposited into the Group Principal Collections Reallocation
Account.

          (34) During the Accumulation Period or the Controlled Liquidation
Period, as applicable, the allocation set forth below shall be made with respect
to each Class, beginning with Class A and continuing, seriatim, for each Class,
to the extent that funds are available pursuant to this clause (34):

     An amount equal to the lesser of

          (x)  the portion of the Principal Distribution Amount Shortfall that
               is allocable to such Class and

          (y)  the product of

               (1)  a fraction the numerator of which is the portion of the
                    Principal Distribution Amount Shortfall that is allocable to
                    such Class and the denominator of which is the sum of the
                    portions of the Principal Distribution Amount Shortfalls
                    allocable to all Classes

                                       43
<PAGE>   54

                    designated by the same letter of the alphabet of all Series
                    in the Group to which the Series established hereby belongs
                    that are in their Accumulation Periods or Controlled
                    Liquidation Periods, as applicable (after giving effect to
                    provisions in the applicable Series Supplements
                    substantially similar to the clauses preceding this clause
                    (34)) and

               (2)  the amount on deposit in the Group Principal Collections
                    Reallocation Account before any withdrawals therefrom with
                    respect to any other Series

shall be withdrawn from the Group Principal Collections Reallocation Account and
deposited into the Series Principal Funding Account. The Principal Distribution
Amount Shortfall shall be reduced by the amount of such deposit.

          (35) After all allocations from the Group Principal Collections
Reallocation Account to be made pursuant to any other Series Supplement for any
Series that is a member of the same Group of which the Series established hereby
is a member have been made, the amount remaining on deposit in the Group
Principal Collections Reallocation Account shall be withdrawn from the Group
Principal Collections Reallocation Account and deposited into the Collections
Account.

          (36) After all other allocations have been provided for with respect
to each Series then outstanding (whether or not such Series is a member of the
same Group as the Series established hereby), the lesser of

          (x)  the amount of the Seller Interest and

          (y)  the amount on deposit in the Collections Account

shall be paid to the Holder of the Seller Certificate. If, after such payment,
any amounts remain on deposit in the Collections Account, such amounts shall
remain in the Collections Account for allocation as Principal Collections on the
next Trust Distribution Date.

     SECTION 10. Payments.

     (a)  Payments.

          (1)  On each Distribution Date related to a Due Period in the
Accumulation Period or the Early Accumulation Period, and on the first
Distribution Date of the Amortization Period, the Master Servicer shall direct
the Trustee in writing to withdraw the amount of Excess Income, if any, on
deposit in the Series Principal Funding Account from the Series Principal
Funding Account and pay such amount to the Holder of the Seller Certificate.

          (2)  On each Distribution Date, after giving effect to payments made
pursuant to Section 9 and the calculation of Investor Losses and adjustment of
the Class Investor Interest

                                       44
<PAGE>   55

and Class Invested Amount with respect to each Class pursuant to Section 13, the
Master Servicer shall direct the Trustee in writing to withdraw and cause the
Paying Agent to pay funds from the applicable Investor Account to or for the
benefit of each Class of Investor Certificateholders, seriatim, with respect to
each Class, beginning with Class A, until such payments have been made with
respect to each Class, as set forth below:

          (A)  First, an amount equal to the lesser of

               (x)  the Class Modified Required Amount and

               (y)  the amount on deposit in the Series Distribution Account.

shall be withdrawn from the Series Distribution Account and deposited into the
Series Interest Funding Account. The amount by which the Class Modified Required
Amount exceeds the amount so deposited into the Series Interest Funding Account
shall be the "Class Monthly Deficiency Amount" with respect to such Distribution
Date.

          (B)  Second, an amount equal to the lesser of

               (x)  the sum of the Class Monthly Servicing Fee for such
                    Distribution Date and all accrued but unpaid Class Monthly
                    Servicing Fees from prior months and

               (y)  the amount deposited into the Series Distribution Account
                    with respect to such Class on such Distribution Date
                    pursuant to Section 9 less the amount deposited into the
                    Series Interest Funding Account with respect to such Class
                    pursuant to clause (A) above

shall be withdrawn from the Series Distribution Account and paid to the Master
Servicer.

          (3)  On each Interest Payment Date, the Master Servicer shall direct
the Trustee in writing to deposit into the Series Interest Funding Account any
Class Interest Rate Cap Payment made by any Interest Rate Cap Provider for any
Class or Subclass pursuant to the Class Interest Rate Cap for such Class or
Subclass.

          (4)  On each Interest Payment Date, after giving effect to the
payments described above on such day, the Master Servicer shall direct the
Trustee in writing to withdraw the amount deposited into the Series Interest
Funding Account with respect to each Class or Subclass since the preceding
Interest Payment Date. The Master Servicer shall cause the Paying Agent to pay
such amount on each Interest Payment Date to the Investor Certificateholders of
such Class or Subclass in accordance with Section 5.01 of the Pooling and
Servicing Agreement.

          (5)  On each Interest Payment Date (or, following the early
termination of the Class Interest Rate Swap, on each Distribution Date), the
Master Servicer shall direct the Trustee in writing to withdraw any Net Swap
Payment from the Interest Rate Swap Account and pay such

                                       45
<PAGE>   56

amount to the Interest Rate Swap Counterparty in accordance with the provisions
of the Class Interest Rate Swap.

          (6)  On each Distribution Date in any April or October, the Master
Servicer shall direct the Trustee in writing to withdraw the positive
difference, if any, between the amount on deposit in the Interest Rate Swap
Account and the amount of the Net Swap Payment payable to the Interest Rate Swap
Counterparty on the next Interest Payment Date from the Interest Rate Swap
Account and pay such amount to the Holder of the Seller Certificate.

          (7)  On each Principal Payment Date, after giving effect to the
payments described above on such day, an amount equal to the lesser of

               (x)  the Controlled Liquidation Amount and

               (y)  the amount deposited into the Series Principal Funding
                    Account on any Distribution Date pursuant to Section 9

shall be withdrawn from the Series Principal Funding Account. The Master
Servicer shall cause the Paying Agent to pay such amount to the Investor
Certificateholders of such Class or Subclass in accordance with Section 5.01 of
the Pooling and Servicing Agreement. Except as set forth in the following
sentence, all such amounts shall be paid to or with respect to the Class A
Investor Certificateholders until the Class A Invested Amount is reduced to
zero; and, thereafter, if there is a Subordinate Class with respect to Class A,
such amounts shall be paid to or with respect to the Class B Investor
Certificateholders until the Class B Invested Amount is reduced to zero, unless
the Series Termination Date occurs prior to such date; provided, however, that
on the Fully Funded Date, if any, the Class B Invested Amount shall be withdrawn
from the Series Principal Funding Account and paid to the Class B Investor
Certificateholders. In no event shall any amounts be paid with respect to any
Class of Investor Certificates pursuant to this clause (5) in excess of the
Class Invested Amount for such Class. Any amounts remaining on deposit in the
Series Principal Funding Account after the Class Invested Amount for each Class
has been reduced to zero shall be paid to the Holder of the Seller Certificate.

          (8)  On each Special Payment Date during the Amortization Period,
after giving effect to the payments described above on such day, an amount equal
to the lesser of

               (x)  the Principal Distribution Amount and

               (y)  the amount deposited into the Series Principal Funding
                    Account on such Special Payment Date pursuant to Section 9

shall be withdrawn from the Series Principal Funding Account. The Master
Servicer shall cause the Paying Agent to pay such amount to the Investor
Certificateholders of such Class or Subclass in accordance with Section 5.01 of
the Pooling and Servicing Agreement. Except as set forth in the following
sentence, all such amounts shall be paid to or with respect to the Class A
Investor Certificateholders until the Class A Invested Amount is reduced to
zero; and, thereafter, if there is a Subordinate Class with respect to Class A,
such amounts shall be paid to or with respect to

                                       46
<PAGE>   57

the Class B Investor Certificateholders until the Class B Invested Amount is
reduced to zero, unless the Series Termination Date occurs prior to such date.
In no event shall any amounts be paid with respect to any Class of Investor
Certificates pursuant to this clause (6) in excess of the Class Invested Amount
for such Class. Any amounts remaining on deposit in the Series Principal Funding
Account after the Class Invested Amount for each Class has been reduced to zero
shall be paid to the Holder of the Seller Certificate.

          (9)  On the first Distribution Date of the Amortization Period, if
any, after giving effect to the payments and withdrawals and conversions
described above on such day, an amount equal to the lesser of

               (x)  the Series Invested Amount and

               (y)  the amount on deposit in the Series Principal Funding
                    Account

shall be withdrawn from the Series Principal Funding Account. The Master
Servicer shall cause the Paying Agent to pay such amount to the Investor
Certificateholders of such Class or Subclass in accordance with Section 5.01 of
the Pooling and Servicing Agreement. Except as set forth in the following
sentence, all such amounts shall be paid to or with respect to the Class A
Investor Certificateholders until the Class A Invested Amount is reduced to
zero; and, thereafter, if there is a Subordinate Class with respect to Class A,
such amounts shall be paid to or with respect to the Class B Investor
Certificateholders until the Class B Invested Amount is reduced to zero, unless
the Series Termination Date occurs prior to such date. In no event shall any
amounts be paid with respect to any Class of Investor Certificates pursuant to
this clause (7) in excess of the Class Invested Amount for such Class. Any
amounts remaining on deposit in the Series Principal Funding Account after the
Class Invested Amount for each Class has been reduced to zero shall be paid to
the Holder of the Seller Certificate.

          (10) On the Class Expected Final Payment Date or the Class Final
Maturity Date, if applicable (or, if such Class Expected Final Payment Date or
Class Final Maturity Date is not also a Distribution Date, on the Distribution
Date occurring in the same calendar month as the Class Expected Final Payment
Date or the Class Final Maturity Date, if applicable), the Master Servicer shall
direct the Trustee in writing to withdraw the amount on deposit in the Series
Principal Funding Account with respect to each Class; provided that (i) such
amount shall be no greater than the Class Invested Amount and (ii) funds, if
any, remaining on deposit in the Series Principal Funding Account after the
payment in full of the Class Invested Amount with respect to each Class shall be
withdrawn and paid to the Holder of the Seller Certificate. The Master Servicer
shall cause the Paying Agent to pay such amount to the Investor
Certificateholders of such Class or Subclass in accordance with Section 5.01 of
the Pooling and Servicing Agreement.

     (b)  Payments to the Sellers and/or the Master Servicer. Notwithstanding
the other provisions in Section 9 and this Section 10, any amounts payable to
Discover Bank on behalf of the Holder of the Seller Certificate or to the Master
Servicer on any Distribution Date pursuant to

                                       47
<PAGE>   58

Section 9 and this Section 10 may be paid prior to such Distribution Date
pursuant to Section 4.03(d) of the Pooling and Servicing Agreement.

     SECTION 11. Credit Enhancement

     (a)  Initial Credit Enhancement. The Master Servicer hereby represents with
respect to the Initial Credit Enhancement and shall be deemed to represent with
respect to any successor Credit Enhancement that (i) the Master Servicer has
provided for the Credit Enhancement for the account of the Trustee and for the
benefit of the Investor Certificateholders, (ii) the Master Servicer has entered
into a Credit Enhancement Agreement, (iii) the Credit Enhancement permits the
Trustee or the Master Servicer, acting as the Trustee's attorney-in-fact or
otherwise, to make Credit Enhancement Drawings from time to time in an amount up
to the Total Available Credit Enhancement Amount at such time, for the purposes
set forth in this Agreement and (iv) the Credit Enhancement and the respective
Credit Enhancement Agreement may be terminated by the Trustee without penalty if
(x) the Master Servicer elects to obtain a successor Credit Enhancement and such
successor Credit Enhancement does not cause the ratings of the Investor
Certificates of the Series established hereby to be withdrawn or lowered by
either of the Rating Agencies from the respective ratings of such Investor
Certificates immediately prior to such election or (y) if the Credit Enhancement
is not Funded Credit Enhancement, the Credit Enhancement Provider ceases to be a
Qualified Credit Enhancement Provider.

     (b)  Successor Credit Enhancement.

          (i) If the Credit Enhancement is not Funded Credit Enhancement and if,
     at any time, the provider of such Credit Enhancement ceases to be a
     Qualified Credit Enhancement Provider, the Master Servicer shall obtain a
     successor Credit Enhancement within 30 days or such longer period as will
     not result in the lowering or withdrawal of the rating of any Class of any
     Series then outstanding by the Rating Agencies (a) which, if such successor
     Credit Enhancement is not to be Funded Credit Enhancement, will be issued
     by a Qualified Credit Enhancement Provider and (b) with respect to which
     the representations set forth in Section 11(a) will be satisfied; provided,
     however, that the Master Servicer shall not be required to continue efforts
     to obtain a successor Credit Enhancement if the then existing Credit
     Enhancement Provider again becomes a Qualified Credit Enhancement Provider
     and remains such; and, provided, further, that unless otherwise agreed to
     by the Rating Agencies, the Credit Enhancement and Credit Enhancement
     Agreement will not be terminated and no successor Credit Enhancement
     Provider shall be selected if the successor Credit Enhancement, the
     successor Credit Enhancement Agreement, or the selection of such successor
     Credit Enhancement Provider would cause the ratings of the Investor
     Certificates of the Series established hereby to be withdrawn or lowered by
     either Rating Agency from the respective ratings of such Investor
     Certificates immediately prior to such selection. The Master Servicer, the
     Trustee and the Sellers shall promptly enter into any such successor Credit
     Enhancement Agreement, and the Master Servicer shall use its best efforts
     to secure the signature of any other required party to such agreement.

                                       48
<PAGE>   59

          (ii)  Regardless of whether the Credit Enhancement is Funded Credit
     Enhancement, the Master Servicer may elect, at any time, to obtain a
     successor Credit Enhancement, provided that such successor Credit
     Enhancement does not cause the ratings of the Investor Certificates of the
     Series established hereby to be withdrawn or lowered by either of the
     Rating Agencies from the respective ratings of such Investor Certificates
     immediately prior to such election.

          (iii) In any case, subject to the foregoing, any successor Credit
     Enhancement obtained by the Master Servicer need not consist of the same
     type of Credit Enhancement as the Initial Credit Enhancement, but may
     consist of a different type of facility, including, but not limited to, a
     reserve account, a cash collateral account, an irrevocable standby letter
     of credit, a surety bond or a combination of any of the above. Upon
     issuance of, or other provision for, any such successor Credit Enhancement,
     the Trustee shall terminate the prior Credit Enhancement and Credit
     Enhancement Agreement.

     (c)  Supplemental Credit Enhancement Event. Upon the occurrence of a
Supplemental Credit Enhancement Event, Discover Bank as Servicer shall, within
60 days of notice from Standard & Poor's of the withdrawal or downgrade (or such
longer period as may be agreed to by Standard & Poor's), arrange for the payment
of the Supplemental Credit Enhancement Amount, if any, by a Person other than
Discover Bank (or from Series Excess Servicing) to the Trustee as administrator
of the Credit Enhancement for application in accordance with the provisions of
the Credit Enhancement Agreement. Both the form and the provider of the
Supplemental Credit Enhancement Amount, if any, shall be determined at the time
it is to be paid; provided, that the Master Servicer shall have received
confirmation from Standard & Poor's that the arrangements with respect to the
Supplemental Credit Enhancement Amount, if any, will not result in the rating of
the Investor Certificates of the Series established hereby being withdrawn or
lowered. In addition to the foregoing, the Master Servicer shall notify Moody's
of the occurrence of a Supplemental Credit Enhancement Event as soon as
practicable after such occurrence, and shall notify Moody's in advance of its
implementation of the form and provider of the Supplemental Credit Enhancement
Amount, if any.

     SECTION 12. Alternative Credit Support Election.

     (a)  The Sellers may elect to effect a change in the calculation of the
Class Percentage with respect to Finance Charge Collections during the Early
Accumulation Period or the Amortization Period, as set forth in the definition
of "Class Percentage," and increase the Available Class B Credit Enhancement
Amount, by making an Alternative Credit Support Election. An Alternative Credit
Support Election may be made as follows:

          (i) at any time during the Revolving Period, Discover Bank on behalf
     of the Holder of the Seller Certificate shall deliver written notice of
     such Alternative Credit Support Election to the Rating Agencies, the
     Trustee and the Credit Enhancement Provider;

                                       49
<PAGE>   60

          (ii)  prior to the last day of the Revolving Period, the Additional
     Credit Support Amount shall be paid to the Trustee as administrator of the
     Credit Enhancement for application in accordance with the provisions of the
     Credit Enhancement Agreement; provided, however, that following an Early
     Accumulation Event or an Amortization Event, the Additional Credit Support
     Amount may be paid to the Trustee as administrator of the Credit
     Enhancement at any time on or prior to the last day of the Due Period in
     which the Early Accumulation Event or the Amortization Event occurs;

          (iii) prior to the last day of the Revolving Period (or, following an
     Early Accumulation Event or an Amortization Event during the Revolving
     Period, on or prior to the last day of the Due Period in which the Early
     Accumulation Event or the Amortization Event occurs), the Rating Agencies
     shall have confirmed that the Alternative Credit Support Election shall not
     cause a reduction in or withdrawal of the rating of any Class of Investor
     Certificates of the Series established hereby; and

          (iv)  prior to the last day of the Revolving Period (or, following an
     Early Accumulation Event or an Amortization Event during the Revolving
     Period, on or prior to the last day of the Due Period in which the Early
     Accumulation Event or the Amortization Event occurs), Discover Bank on
     behalf of the Holder of the Seller Certificate shall have delivered to the
     Rating Agencies written confirmation that the conclusions reached in the
     legal opinions delivered on the Initial Closing Date regarding the absolute
     transfer of the Receivables and the security interest of the Trust in the
     Receivables are not affected by the Alternative Credit Support Election.

     (b)  If each of the actions set forth in Section 12(a) above has been taken
or satisfied as required, the Alternative Credit Support Election shall become
effective on the last day of the Due Period in which the Additional Credit
Support Amount has been paid to the Trustee as administrator of the Credit
Enhancement (an "Effective Alternative Credit Support Election").

     (c)  At any time until the Alternative Credit Support Election becomes
effective, such Alternative Credit Support Election may be cancelled upon notice
to the Rating Agencies, the Trustee and the Credit Enhancement Provider.
Thereafter, the Additional Credit Support Amount, if any, shall be returned by
the Trustee as administrator of the Credit Enhancement in accordance with the
Credit Enhancement Agreement.

     SECTION 13. Calculation of Investor Losses.

     (a)  For each Distribution Date, the Master Servicer shall calculate the
Class Investor Charged-Off Amount and the Class Cumulative Investor Charged-Off
Amount with respect to each Class, in each case as of the end of the related Due
Period.

     (b)  If on any Distribution Date, the Class Investor Charged-Off Amount
with respect to any Class exceeds the Class Charge-Off Reimbursement Amount with
respect to such Class, the Class Investor Interest and the Class Invested Amount
for such Class shall each be reduced by the amount of such excess (an "Investor
Charge-Off Loss" with respect to such Class).

                                       50
<PAGE>   61

     (c)  On each Distribution Date the Class Investor Interest and the Class
Invested Amount for each Class shall be increased by, and the amount of
aggregate unreimbursed Investor Losses for each such Class shall be decreased
by, the positive difference, if any, between the Class Charge-Off Reimbursement
Amount on such Distribution Date and the Class Investor Charged-Off Amount for
such Distribution Date; provided, however, that neither the Class Invested
Amount nor the Class Investor Interest shall exceed the Class Initial Investor
Interest for such Class minus the sum of (x) the aggregate amount of payments of
Certificate Principal paid to the Investor Certificateholders of such Class
prior to such Distribution Date, (y) in the case of the Class Investor Interest,
the amount on deposit in the Series Principal Funding Account for the benefit of
such Class in respect of Certificate Principal and (z) the aggregate amount of
losses, if any, on investments of principal of funds on deposit in the Series
Principal Funding Account for the benefit of such Class; and provided, further,
that the amount of Investor Losses with respect to any Class shall not be
reduced to an amount less than zero.

     SECTION 14. Servicing Compensation. As compensation for its servicing
activities hereunder and under the Pooling and Servicing Agreement and
reimbursement of its expenses as set forth in Section 3.03 of the Pooling and
Servicing Agreement, the Master Servicer shall be entitled to receive a monthly
servicing fee with respect to the Series established hereby in respect of any
Due Period (or portion thereof) prior to the earlier of the date on which the
Series Investor Interest is reduced to zero and the Series Termination Date.
Such monthly servicing fees shall be composed of the Class Monthly Servicing
Fees and the Supplemental Servicing Fees, if any. The Class Monthly Servicing
Fees shall be paid to the Master Servicer on behalf of each Class on each
Distribution Date pursuant to Section 10. The Supplemental Servicing Fee, if
any, shall be paid to the Master Servicer on or before each Distribution Date
from the Series Additional Funds for such Distribution Date. In no event shall
the Trustee or the Investor Certificateholders be liable for the Supplemental
Servicing Fee.

     SECTION 15. Class Interest Rate Caps.

     (a)  In the event that the Master Servicer has obtained a Class Interest
Rate Cap in favor of the Trustee for the benefit of a Class or Subclass that
does not have a fixed or maximum Certificate Rate, the Master Servicer hereby
represents that such Class Interest Rate Cap provides that (i) the Trust shall
not be required to make any payments thereunder and (ii) the Trust shall be
entitled to receive payments (determined in accordance with the Class Interest
Rate Cap) from the Interest Rate Cap Provider on an Interest Payment Date if
LIBOR or the Commercial Paper Rate, as applicable, for the related Calculation
Period exceeds the Class Cap Rate for the applicable Class or Subclass. Any
Class Interest Rate Cap Payment shall be deposited into the Series Interest
Funding Account.

     (b)  In the event that the commercial paper or certificate of deposit
rating of the Interest Rate Cap Provider is withdrawn or reduced below the
ratings specified in the Series Term Sheet (or, in either case, such lower
rating as the applicable Rating Agency shall allow), then within 30 days after
receiving notice of such decline in the creditworthiness of the Interest Rate
Cap Provider as determined by either Rating Agency, either (x) the Interest Rate
Cap Provider, with the prior confirmation of the Rating Agencies that such
arrangement will not

                                       51
<PAGE>   62

result in the reduction or withdrawal of the rating of any Investor Certificates
of the Series established hereby, will enter into an arrangement the purpose of
which shall be to assure performance by the Interest Rate Cap Provider of its
obligations under the Class Interest Rate Caps; or (y) the Master Servicer shall
at its option either (i) with the prior confirmation of the Rating Agencies that
such action will not result in a reduction or withdrawal of the rating of any
Investor Certificates of the Series established hereby, cause the Interest Rate
Cap Provider to pledge securities in the manner provided by applicable law,
which shall be held by the Trustee or its agent free and clear of the Lien of
any third party, in a manner conferring on the Trustee a perfected first Lien in
such securities securing the Interest Rate Cap Provider's performance of its
obligations under the Class Interest Rate Caps, or (ii) provided that
Replacement Class Interest Rate Caps or Qualified Substitute Cap Arrangements
meeting the requirements of Section 15(c) have been obtained, direct the Trustee
(A) to provide written notice to the Interest Rate Cap Provider of its intention
to terminate the Class Interest Rate Caps within such 30-day period and (B) to
terminate the Class Interest Rate Caps within such 30-day period, to request the
payment to it of all amounts due to the Trust under the Class Interest Rate Caps
through the termination date and to deposit any such amounts so received, on the
day of receipt, to the Series Interest Funding Account, or (iii) establish any
other arrangement (including an arrangement or arrangements in addition to or in
substitution for any prior arrangement made in accordance with the provisions of
this Section 15(b)) satisfactory to the Rating Agencies such that the Rating
Agencies will not reduce or withdraw the rating of any Investor Certificates of
the Series established hereby (a "Qualified Substitute Cap Arrangement");
provided, however, that in the event at any time any alternative arrangement
established pursuant to clause (x) or (y)(i) or (y)(iii) above shall cease to be
satisfactory to the Rating Agencies then the provisions of this Section 15(b)
shall again be applied and in connection therewith the 30-day period referred to
above shall commence on the date the Master Servicer receives notice of such
cessation.

     (c)  Unless an alternative arrangement pursuant to clause (x) or (y)(i) of
Section 15(b) is being established, the Master Servicer shall use its best
efforts to obtain Replacement Class Interest Rate Caps or Qualified Substitute
Cap Arrangements meeting the requirements of this Section 15(c) during the
30-day period referred to in Section 15(b). The Trustee shall not terminate the
Class Interest Rate Caps unless, prior to the expiration of the 30-day period
referred to in Section 15(b), the Master Servicer delivers to the Trustee (i)
Replacement Class Interest Rate Caps or Qualified Substitute Cap Arrangements,
(ii) to the extent applicable, an Opinion of Counsel as to the due
authorization, execution and delivery and validity and enforceability of each
such Replacement Class Interest Rate Cap or Qualified Substitute Cap
Arrangement, as the case may be, and (iii) confirmation from each Rating Agency
that the termination of the Class Interest Rate Caps and their replacement with
such Replacement Class Interest Rate Caps or Qualified Substitute Cap
Arrangements will not adversely affect its rating of the Investor Certificates
of the Series established hereby.

     (d)  Master Servicer shall notify the Trustee, the Rating Agencies and the
Credit Enhancement Provider within five Business Days after obtaining knowledge
that the commercial paper or certificate of deposit rating of the Interest Rate
Cap Provider has been withdrawn or reduced by either Rating Agency.

                                       52
<PAGE>   63

     (e)  Notwithstanding the foregoing, the Master Servicer may at any time
obtain Replacement Class Interest Rate Caps, provided that the Master Servicer
delivers to the Trustee (i) an Opinion of Counsel as to the due authorization,
execution and delivery and validity and enforceability of such Replacement Class
Interest Rate Caps and (ii) confirmation from the Rating Agencies that the
termination of the then current Class Interest Rate Caps and their replacement
with such Replacement Class Interest Rate Caps will not adversely affect the
rating of the Investor Certificates of the Series established hereby.

     (f)  The Trustee hereby appoints the Master Servicer to perform the duties
of the calculation agent under the Class Interest Rate Caps and the Master
Servicer accepts such appointment.

     SECTION 16. Class Interest Rate Swaps. In the event that the Investor
Certificates of any Class are subject to a Class Interest Rate Swap, the Trust
will enter into a Class Interest Rate Swap in a form approved by the Master
Servicer. Pursuant to the terms of the Class Interest Rate Swap, the Interest
Rate Swap Counterparty shall pay to the Trust the Net Swap Receipt or the Trust
shall pay to the Interest Rate Swap Counterparty the Net Swap Payment, as
applicable. If the Trust does not receive payment from the Interest Rate Swap
Counterparty on each Interest Payment Date (if due), the Trustee, on behalf of
the Trust, shall attempt to determine from the Interest Rate Swap Counterparty
the reasons therefore and whether such payment is to be made by the Interest
Rate Swap Counterparty on such Interest Payment Date. If the Class Interest Rate
Swap has not been terminated and the Trust has not received any payment due from
the Interest Rate Swap Counterparty on the related Interest Payment Date, the
Trustee shall notify the Master Servicer of such fact prior to 1:00 p.m. Chicago
time on such Interest Payment Date.

     SECTION 17. Investor Certificateholders' Monthly Statement. On each
Statement Date, a statement substantially in the form of Exhibit B prepared by
the Trustee (based on information provided by the Master Servicer) setting forth
the information listed thereon shall be available from the Trustee, each Paying
Agent and, if applicable, the Listing Agent.

     SECTION 18. Master Servicer's Monthly Certificate. On or before the second
Business Day preceding each Statement Date, the Master Servicer shall forward to
Discover Bank on behalf of the Holder of the Seller Certificate, the Trustee and
each Paying Agent a certificate of a Servicing Officer substantially in the form
of Exhibit C setting forth the information listed thereon.

     SECTION 19. Notices. Any notices to holders of Investor Certificates issued
in bearer form shall be given as described in the Series Term Sheet.

     SECTION 20. Additional Amortization Events. If any one of the following
events shall occur:

     (a)  after giving effect to payments and distributions on the Class
Expected Final Payment Date or the Class Final Maturity Date, as applicable,
with respect to any Class, the Class Invested Amount for such Class is not
reduced to zero;

                                       53
<PAGE>   64

     (b)  if applicable, following either (i) the withdrawal or reduction of the
commercial paper or certificate of deposit rating of any Interest Rate Cap
Provider to below the ratings specified in the Series Term Sheet (or, in either
case, such lower rating as the applicable Rating Agency has allowed) or (ii)
notice from either Rating Agency that any Qualified Substitute Cap Arrangement
or any other arrangement established pursuant to Section 15 is no longer
satisfactory to such Rating Agency, the Master Servicer shall fail, within the
applicable time period specified in Section 15, to (x) obtain Replacement Class
Interest Rate Caps or Qualified Substitute Cap Arrangements or (y) cause the
Interest Rate Cap Provider to pledge securities as collateral securing the
obligations of the Interest Rate Cap Provider or establish any other arrangement
as provided in Section 15, in each case in a manner satisfactory to the Trustee
and the Rating Agencies (such that neither Rating Agency will reduce or withdraw
the ratings of the Investor Certificates of the Series established hereby); or

     (c)  if the amount of Principal Receivables in the Trust at the end of any
Due Period for three consecutive Due Periods of the Early Accumulation Period
shall be less than the Minimum Principal Receivables Balance and Discover Bank
shall have failed to assign Receivables in Additional Accounts or Participation
Interests to the Trust in at least the amount of the deficiency by the tenth day
of the calendar month of the following Due Period;

an Amortization Event shall occur with respect to the Investor Certificates of
the Series established hereby, immediately upon the occurrence of such event. If
an Amortization Event described in this Section 20 shall occur, this Section 20
constitutes written notice by the Trustee and not less than 51% of the Class
Invested Amount of each Class of the Series established hereby to the Master
Servicer and the Sellers that such Amortization Event has occurred. No
additional notice of any kind, which is hereby waived by the Sellers and the
Master Servicer, shall be required as a condition of the occurrence of any
Amortization Event described in this Section 20. In addition, the events set
forth in Section 21 shall constitute either Early Accumulation Events or
additional Amortization Events with respect to the Series established hereby.

     SECTION 21. Early Accumulation Events; Additional Amortization Events. If
the Series established hereby is eligible to have an Early Accumulation Period,
each of the events described in clause (a), (b), (g), (i) or (j) of Section 9.01
of the Pooling and Servicing Agreement shall not be Amortization Events but
shall instead be Early Accumulation Events. In addition, for purposes of this
Series Supplement, each of the following events shall be (i) Early Accumulation
Events, if the Series established hereby is eligible to have an Early
Accumulation Period, or (ii) Amortization Events, if the Series established
hereby is not eligible to have an Early Accumulation Period:

     (a)  on any Distribution Date, the three month rolling average Series
Excess Spread is less than the Series Buffer Amount and the three month rolling
average Group Excess Spread is less than the Group Buffer Amount;

     (b)  if a Supplemental Credit Enhancement Event shall have occurred and
Discover Bank as Servicer shall have failed to arrange for the Supplemental
Credit Enhancement in

                                       54
<PAGE>   65

accordance with the requirements of Section 11(c) hereof (including, without
limitation, receipt of the confirmation from Standard & Poor's required
thereby).

If any event described in clause (a), (b), (g), (i) or (j) of Section 9.01 of
the Pooling and Servicing Agreement occurs, an Early Accumulation Event shall
occur with respect to the Investor Certificates of such Class only if the event
has a material adverse effect on the Investor Certificateholders of such Class
and if, after the applicable grace period described in those clauses, either the
Trustee declares or the Investor Certificateholders of such Class evidencing
Fractional Undivided Interests aggregating not less than 51% of the Class
Invested Amount for either Class declare by written notice to Discover Bank and
the Master Servicer (and to the Trustee if given by the Investor
Certificateholders) that an Early Accumulation Event has occurred as of the date
of the notice. In the case of any event described in clause (a) or (b) of this
Section 21, an Early Accumulation Event shall occur with respect to the Investor
Certificates of such Class immediately upon the occurrence of the event without
any notice or other action on the part of the Trustee or the Investor
Certificateholders of such Class. On the date on which an Early Accumulation
Event is deemed to have occurred the Early Accumulation Period will commence.

     SECTION 22. Purchase of Investor Certificates and Series Termination.

     (a)  If as of any Distribution Date during the Amortization Period (after
giving effect to any payments calculated pursuant to Section 9 made on such
Distribution Date) the Series Investor Interest of the Series established hereby
is less than or equal to 5% of the Series Initial Investor Interest, Discover
Bank on behalf of the Holder of the Seller Certificate may purchase and cancel
the Investor Certificates of the Series established hereby by depositing into
the Series Distribution Account, on the immediately succeeding Distribution
Date, an amount equal to the Series Investor Interest as of the last day of the
Due Period related to such immediately succeeding Distribution Date. The Master
Servicer shall direct the Trustee in writing to withdraw the amount allocable to
such Class from the Series Distribution Account and pay such amount to the
Investor Certificateholders of such Class pursuant to Section 12.02 of the
Pooling and Servicing Agreement. All Investor Certificates of the Series
established hereby that are purchased by Discover Bank on behalf of the Holder
of the Seller Certificate pursuant to this Section 22(a) shall be delivered by
Discover Bank on behalf of the Holder of the Seller Certificate upon such
purchase to, and be cancelled by, the Transfer Agent and be disposed of in a
manner satisfactory to the Trustee and Discover Bank on behalf of the Holder of
the Seller Certificate.

     (b)  If as of any Distribution Date during the Accumulation Period, the
Early Accumulation Period or the Controlled Liquidation Period, as applicable
(after giving effect to any payments calculated pursuant to Section 9 made on
such Distribution Date), the Series Investor Interest of the Series established
hereby is less than or equal to 5% of the Series Initial Investor Interest
(before giving effect to any reduction in the Series Initial Investor Interest
pursuant to Section 6.14 of the Pooling and Servicing Agreement), Discover Bank
on behalf of the Holder of the Seller Certificate may, but shall not be
obligated to, purchase the Investor Certificates of the Series established
hereby by depositing into the Series Principal Funding

                                       55
<PAGE>   66

Account, on such Distribution Date, an amount equal to such Series Investor
Interest. After giving effect to such deposit, such Series Investor Interest
shall be reduced to zero, and the Seller Interest shall be increased by the
amount of such deposit.

     (c)  Following the sale of Receivables pursuant to Section 12.02 of the
Pooling and Servicing Agreement, the Master Servicer shall direct the Trustee in
writing to withdraw the amount allocable to each Class from the Series
Distribution Account and pay such amount to the Investor Certificateholders of
such Class pursuant to Section 12.02 of the Pooling and Servicing Agreement.

     SECTION 23. Variable Accumulation Period. If the Series Term Sheet for the
Series established hereby so provides, the Master Servicer may elect, by written
notice to the Trustee, Discover Bank on behalf of the Holder of the Seller
Certificate and the Credit Enhancement Provider, to delay the commencement of
the Accumulation Period, and extend the length of the Revolving Period, subject
to the conditions set forth in this Section 23; provided, however, that the
Accumulation Period shall commence no later than the first day of the Due Period
related to the Class A Expected Final Payment Date. Any such election by the
Master Servicer shall be made no later than the first day of the last scheduled
Due Period of the Revolving Period (including any prior extension of the
Revolving Period pursuant to this Section 23).

     The Master Servicer may make such election only if the following conditions
are satisfied: (i) the Master Servicer shall have delivered to the Trustee a
certificate to the effect that the Master Servicer reasonably believes that the
delay in the commencement of the Accumulation Period would not result in the
Class Invested Amount with respect to any Class of the Series established hereby
not being paid in full on the relevant Class Expected Final Payment Date; (ii)
the Rating Agencies shall have advised the Master Servicer and Discover Bank on
behalf of the Holder of the Seller Certificate that such election to delay the
commencement of the Accumulation Period would not cause the rating of any Class
of any Series then outstanding to be lowered or withdrawn; and (iii) the amount
to be deposited in the Series Principal Funding Account in respect of the
Accumulation Amount shall have been adjusted.

     SECTION 24. Optional Accumulation Period Commencement. If the Series Term
Sheet for the Series established hereby so provides, unless the Amortization
Period or the Early Accumulation Period shall have commenced prior thereto, the
Master Servicer may elect to commence the Accumulation Period by delivering
written notice to the Trustee, Discover Bank, on behalf of the Holder of the
Seller Certificate and the Credit Enhancement Provider at least 5 Business Days
prior to the Accumulation Commencement Date subject to the conditions set forth
in this Section 24; provided, however, that the Accumulation Period shall
commence no later than the first day of the following Due Period. Such written
notice shall set forth the Accumulation Amount for each Distribution Date
relating to the Accumulation Period.

     SECTION 25. Series Yield Factor. The Series Yield Factor for the Series
established hereby shall initially be the Series Yield Factor set forth in the
Series Term Sheet. The Master Servicer may change the Series Yield Factor upon
20 days prior written notice to the Trustee, Discover Bank on behalf of the
Holder of the Seller Certificate, the Credit Enhancement Provider

                                       56
<PAGE>   67

and the Rating Agencies, provided that the following conditions are satisfied:
(i) the Series Yield Factor may not be reduced below the initial Series Yield
Factor or increased to more than a total of 0.05; (ii) the Master Servicer shall
have delivered to the Trustee a certificate to the effect that the Master
Servicer reasonably believes that the change in the Series Yield Factor would
not (x) result in any delay in the payment of principal to the Investor
Certificateholders of any Series then outstanding, or (y) cause an Amortization
Event or an Early Accumulation Event to occur with respect to any Series then
outstanding; and (iii) Standard & Poor's shall have advised the Master Servicer
and Discover Bank on behalf of the Holder of the Seller Certificate that such
change in the Series Yield Factor would not cause the rating of any Class of any
Series then outstanding to be lowered or withdrawn. Any such change shall be
effective as of the first day of the Due Period specified in the notice of the
Master Servicer.

     SECTION 26. Ratification of Pooling and Servicing Agreement. As
supplemented and amended by this Series Supplement, the Pooling and Servicing
Agreement is in all respects ratified and confirmed and the Pooling and
Servicing Agreement as so supplemented by this Series Supplement shall be read,
taken, and construed as one and the same instrument.

     SECTION 27. Counterparts. This Series Supplement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the
same instrument.

     SECTION 28. Governing Law. This Series Supplement shall be construed in
accordance with the internal laws of the State of New York, without reference to
its conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

     SECTION 29. Intention of Parties. The parties intend the sale, transfer,
assignment or conveyance of Receivables in connection herewith to be a sale of
financial assets in connection with a securitization, an absolute transfer for
all purposes (other than for federal, state and local income and franchise tax
purposes) and to be treated as a sale for accounting purposes.

                                       57
<PAGE>   68

                                   EXHIBIT A-1

                           FORM OF CLASS A CERTIFICATE

                 [FORM OF THE FACE OF THE CLASS A CERTIFICATES]

         UNLESS THIS CLASS A CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT
IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

NO.                                                              $

                                                        CUSIP NO. ______________

                  DISCOVER CARD MASTER TRUST I, SERIES 2001 - 3
           FLOATING RATE CLASS A CREDIT CARD PASS-THROUGH CERTIFICATE

                                  DISCOVER BANK
                      MASTER SERVICER, SERVICER AND SELLER

(NOT AN INTEREST IN OR OBLIGATION OF DISCOVER BANK AND NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.)

         This certifies that Cede & Co. (the "Class A Certificateholder") is the
registered owner of a Fractional Undivided Interest in the Discover Card Master
Trust I (the "Trust"), the corpus of which consists of a portfolio of
receivables (the "Receivables") existing as of the Cut-Off Date (or, with
respect to Receivables in Additional Accounts, as of the applicable Additional
Account Cut-Off Date) or thereafter created under certain open end credit card
accounts for specified Persons (the "Accounts") originated by Discover Bank
(formerly Greenwood Trust Company), a Delaware banking corporation ("Discover
Bank"), or an affiliate of Discover Bank, and transferred to the Trust by
Discover Bank or one or more Additional Sellers, all monies due or to become due
with respect thereto, all proceeds (as defined in Section 9-306 of the Uniform
Commercial Code as in effect in the Applicable State) of such Receivables
pursuant to a Pooling and Servicing Agreement, dated as of October 1, 1993, by
and between U.S. Bank National Association (formerly First Bank National
Association, successor trustee to Bank of America Illinois, formerly Continental
Bank, National Association) as Trustee (the "Trustee") and

                                     A-1-1
<PAGE>   69

Discover Bank as Master Servicer, Servicer and Seller, as amended (the "Pooling
and Servicing Agreement"), a summary of certain of the pertinent provisions of
which is set forth herein below, and benefits under any Credit Enhancement with
respect to any Series of investor certificates issued from time to time pursuant
to the Pooling and Servicing Agreement, to the extent applicable. Reference is
hereby made to the further provisions of this Class A Certificate set forth on
the reverse hereof, and such further provisions shall for all purposes have the
same effect as if set forth at this place.

          This Class A Certificate shall not be entitled to any benefit under
the Pooling and Servicing Agreement or any amendment thereto, or the Series
Supplement, dated as of March 15, 2001 (the "Series Supplement"), by and between
the Trustee and Discover Bank or any amendment thereto, or become vested or
obligatory for any purpose until the certificate of authentication hereon shall
have been signed by or on behalf of the Trustee under the Pooling and Servicing
Agreement.

                                     A-1-2
<PAGE>   70

          IN WITNESS WHEREOF, Discover Bank has caused this Class A Certificate
to be duly executed and authenticated.

                                                  DISCOVER BANK

                                                  By:
                                                     ---------------------------

                                     A-1-3
<PAGE>   71

                [FORM OF THE REVERSE OF THE CLASS A CERTIFICATES]

          It is the intent of the Sellers and the Investor Certificateholders
that, for federal, state and local income and franchise tax purposes only, the
Investor Certificates will be evidence of indebtedness of the Sellers. The
Sellers and the Class A Certificateholder, by the acceptance of this Class A
Certificate, agree to treat this Class A Certificate for federal, state and
local income and franchise tax purposes as indebtedness of the Sellers secured
by the Receivables and other assets held in the Trust.

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

          This Class A Certificate is one of a series of Certificates entitled
"Discover Card Master Trust I, Series 2001 - 3 Floating Rate Class A Credit Card
Pass-Through Certificates" (the "Class A Certificates"), each of which
represents a Fractional Undivided Interest in the Trust including the right to
receive the Collections and other amounts at the times and in the amounts
specified in the Pooling and Servicing Agreement and the Series Supplement to be
deposited in the Investor Accounts with respect to Discover Card Master Trust I,
Series 2001 - 3 or paid to the Class A Certificateholders. Also issued under the
Pooling and Servicing Agreement and the Series Supplement are Investor
Certificates designated as "Discover Card Master Trust I, Series 2001 - 3
Floating Rate Class B Credit Card Pass-Through Certificates" (the "Class B
Certificates"). The Class A Certificates and the Class B Certificates are
collectively referred to herein as the Investor Certificates.

          The aggregate interest represented by the Class A Certificates at any
time in the assets of the Trust shall not exceed an amount equal to the Class A
Investor Interest at such time, plus accrued but unpaid Certificate Interest for
the Class A Certificates and any interest thereon. The Class Initial Investor
Interest of the Class A Certificates is $750,000,000. The Class A Invested
Amount on any Distribution Date will be an amount equal to the Class A Initial
Investor Interest minus the sum of (a) the aggregate amount of payments of
Certificate Principal paid to the Class A Certificateholders prior to such
Distribution Date, (b) the aggregate amount of Investor Losses for such Class
not reimbursed prior to such Distribution Date and (c) the aggregate amount of
losses of principal on investments in funds on deposit for the benefit of such
Class in the Series Principal Funding Account. In addition to the Investor
Certificates, a Seller Certificate has been issued pursuant to the Pooling and
Servicing Agreement which represents, at any time, the undivided interest in the
Trust not represented by the Investor Certificates or the investor certificates
of any other Series of investor certificates then outstanding. Subject to the
terms and conditions of the Pooling and Servicing Agreement, the Sellers may
from time to time direct the Trustee, on behalf of the Trust, to issue one or
more new Series of investor certificates, which will represent Fractional
Undivided Interests in the Trust.

                                     A-1-4
<PAGE>   72

          During the Revolving Period, which begins on the Series Cut-Off Date,
and during the Accumulation Period, Certificate Interest will be distributed on
the 15th day of each calendar month with respect to interest accrued during the
preceding Interest Accrual Period, commencing in April 2001, or if such 15th day
is not a Business Day, on the next succeeding Business Day (an "Interest Payment
Date"), to the Class A Certificateholders of record as of the last day of the
month preceding the related Interest Payment Date. Principal on the Class A
Certificates is scheduled to be paid in a single payment on the Distribution
Date in March 2006 (the "Class A Expected Final Payment Date"), but may be paid
sooner or later and in installments if an Amortization Event occurs. During the
Amortization Period, if any, Certificate Interest and Certificate Principal
collected by the Master Servicer will be distributed to the Class A
Certificateholders on the Distribution Date of each calendar month, commencing
in the month following the commencement of the Amortization Period. In any
event, the final payment of principal of either class will be made no later than
the first Business Day following the Distribution Date in September 2008 (the
"Series Termination Date").

          The amount to be distributed on each Principal Payment Date to the
holder of this Class A Certificate will be equal to the product of (a) the
percentage equivalent of a fraction, the numerator of which is the portion of
the Class A Initial Investor Interest evidenced by this Class A Certificate and
the denominator of which is the Class A Initial Investor Interest and (b) the
aggregate of all payments to be made to the Class A Certificateholders on such
Distribution Date. Distributions with respect to this Class A Certificate will
be made by the Paying Agent by check mailed to the address of the Class A
Certificateholder of record appearing in the Certificate Register (except for
the final distribution in respect of this Class A Certificate) without the
presentation or surrender of this Class A Certificate or the making of any
notation thereon, except that with respect to Class A Certificates registered in
the name of Cede & Co., the nominee registrant for The Depository Trust Company,
distributions will be made in the form of immediately available funds.

          This Class A Certificate does not represent an obligation of, or an
interest in, the Master Servicer. This Class A Certificate is limited in right
of payment to certain Collections respecting the Receivables, all as more
specifically set forth hereinabove and in the Pooling and Servicing Agreement
and the Series Supplement.

          The Pooling and Servicing Agreement permits, with certain exceptions,
the amendment and modification of the rights and obligations of the Master
Servicer, and the rights of Investor Certificateholders under the Pooling and
Servicing Agreement and Series Supplement, at any time by the Master Servicer,
the Sellers and the Trustee in certain cases (some of which require confirmation
from the Rating Agencies that such amendment will not result in the downgrading
or withdrawal of the rating assigned to the Investor Certificates) without the
consent of the Investor Certificateholders, and in all other cases with the
consent of the Investor Certificateholders owning Fractional Undivided Interests
aggregating not less than 66-2/3% of the Class Invested Amount of each such
affected Class (and with confirmation from the Rating Agencies that such
amendment will not result in the downgrading or withdrawal of the rating
assigned to the Investor Certificates); provided, however, that no such
amendment shall (a) have a material adverse effect on any Class of Investor
Certificateholders by reducing in any manner the amount of, or delaying the
timing of, distributions which are required to be made on any

                                     A-1-5
<PAGE>   73

Investor Certificate without the consent of the affected Investor
Certificateholders or (b) reduce the aforesaid percentage required to consent to
any such amendment, without the consent of each Investor Certificateholder of
each affected Class then of record. Any such amendment and any such consent by
the Class A Certificateholder shall be conclusive and binding on such Class A
Certificateholder and upon all future Holders of this Class A Certificate and of
any Class A Certificate issued in exchange hereof or in lieu hereof whether or
not notation thereof is made upon this Class A Certificate.

          The transfer of this Class A Certificate shall be registered in the
Certificate Register upon surrender of this Investor Certificate for
registration of transfer at any office or agency maintained by the Transfer
Agent and Registrar accompanied by a written instrument of transfer in a form
satisfactory to the Trustee and the Transfer Agent and Registrar duly executed
by the Class A Certificateholder or such Class A Certificateholder's attorney
duly authorized in writing, and thereupon one or more new Class A Certificates
of authorized denominations and for the same aggregate Fractional Undivided
Interest will be issued to the designated transferee or transferees.

          As provided in the Pooling and Servicing Agreement and subject to
certain limitations therein set forth, Class A Certificates are exchangeable for
new Class A Certificates evidencing like aggregate Fractional Undivided
Interests, as requested by the Class A Certificateholder surrendering such Class
A Certificates. No service charge may be imposed for any such exchange but the
Master Servicer or Transfer Agent and Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith.

          The Master Servicer, the Trustee, the Paying Agent and the Transfer
Agent, and any agent of any of them, may treat the person in whose name this
Class A Certificate is registered as the owner hereof for all purposes, and
neither the Master Servicer, the Trust nor the Trustee, the Paying Agent, the
Transfer Agent, nor any agent of any of them or any such agent shall be affected
by notice to the contrary except in certain circumstances described in the
Pooling and Servicing Agreement.

          Subject to certain conditions in the Pooling and Servicing Agreement
and the Series Supplement, if the principal of the Investor Certificates has not
been paid in full prior to the Series Termination Date, the obligations created
by the Pooling and Servicing Agreement and the Series Supplement with respect to
the Investor Certificates shall terminate on the Series Termination Date.

                                     A-1-6
<PAGE>   74

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

          This is one of the Class A Certificates referred to in the within
mentioned Pooling and Servicing Agreement and Series Supplement.

                                                U.S. BANK NATIONAL ASSOCIATION,
                                                as Trustee

                                                By:
                                                   -----------------------------
                                                       Authorized Officer

                                     A-1-7
<PAGE>   75

                                   EXHIBIT A-2

                           FORM OF CLASS B CERTIFICATE

                 [FORM OF THE FACE OF THE CLASS B CERTIFICATES]

          UNLESS THIS CLASS B CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS B CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT
IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

NO.                                                            $

                                                      CUSIP NO. ________________

          THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A
CERTIFICATES AND TO THE RIGHTS OF THE MASTER SERVICER AS DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT AND SERIES SUPPLEMENT REFERRED TO HEREIN.

                  DISCOVER CARD MASTER TRUST I, SERIES 2001 - 3
           FLOATING RATE CLASS B CREDIT CARD PASS-THROUGH CERTIFICATE

                                  DISCOVER BANK
                      MASTER SERVICER, SERVICER AND SELLER

(NOT AN INTEREST IN OR OBLIGATION OF DISCOVER BANK AND NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.)

          THIS INVESTOR CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF
ANY EMPLOYEE BENEFIT PLAN (AS DEFINED BELOW).

          This certifies that Cede & Co. (the "Class B Certificateholder") is
the registered owner of a Fractional Undivided Interest in the Discover Card
Master Trust I (the "Trust"), the corpus of which consists of a portfolio of
receivables (the "Receivables") existing as of the Cut-Off Date (or, with
respect to Receivables in Additional Accounts, as of the applicable Additional
Account Cut-Off Date) or thereafter created under certain open end credit card
accounts for specified Persons (the "Accounts") originated by Discover Bank
(formerly Greenwood Trust Company), a

<PAGE>   76

Delaware banking corporation ("Discover Bank"), or an affiliate of Discover
Bank, and transferred to the Trust by Discover Bank or one or more Additional
Sellers, all monies due or to become due with respect thereto, all proceeds (as
defined in Section 9-306 of the Uniform Commercial Code as in effect in the
Applicable State) of such Receivables pursuant to a Pooling and Servicing
Agreement, dated as of October 1, 1993, by and between U.S. Bank National
Association (formerly First Bank National Association, successor trustee to Bank
of America Illinois, formerly Continental Bank, National Association) as Trustee
(the "Trustee") and Discover Bank as Master Servicer, Servicer and Seller, as
amended (the "Pooling and Servicing Agreement"), a summary of certain of the
pertinent provisions of which is set forth herein below, and benefits under any
Credit Enhancement with respect to any Series of investor certificates issued
from time to time pursuant to the Pooling and Servicing Agreement, to the extent
applicable. Reference is hereby made to the further provisions of this Class B
Certificate set forth on the reverse hereof, and such further provisions shall
for all purposes have the same effect as if set forth at this place.

          This Class B Certificate shall not be entitled to any benefit under
the Pooling and Servicing Agreement or any amendment thereto, or the Series
Supplement, dated as of March 15, 2001 (the "Series Supplement"), by and between
the Trustee and Discover Bank or any amendment thereto, or become vested or
obligatory for any purpose until the certificate of authentication hereon shall
have been signed by or on behalf of the Trustee under the Pooling and Servicing
Agreement.

                                     A-2-2
<PAGE>   77

          IN WITNESS WHEREOF, Discover Bank has caused this Class B Certificate
to be duly executed and authenticated.

                                                DISCOVER BANK

                                                By:
                                                   -----------------------------

                                     A-2-3
<PAGE>   78

                [FORM OF THE REVERSE OF THE CLASS B CERTIFICATES]

          It is the intent of the Sellers and the Investor Certificateholders
that, for federal, state and local income and franchise tax purposes only, the
Investor Certificates will be evidence of indebtedness of the Sellers. The
Sellers and the Class B Certificateholder, by the acceptance of this Class B
Certificate, agree to treat this Class B Certificate for federal, state and
local income and franchise tax purposes as indebtedness of the Sellers secured
by the Receivables and other assets held in the Trust.

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

          This Class B Certificate is one of a series of Certificates entitled
"Discover Card Master Trust I, Series 2001 - 3 Floating Rate Class B Credit Card
Pass-Through Certificates" (the "Class B Certificates"), each of which
represents a Fractional Undivided Interest in the Trust including the right to
receive the Collections and other amounts at the times and in the amounts
specified in the Pooling and Servicing Agreement and the Series Supplement to be
deposited in the Investor Accounts with respect to Discover Card Master Trust I,
Series 2001 - 3 or paid to the Class B Certificateholders. Also issued under the
Pooling and Servicing Agreement and the Series Supplement are Investor
Certificates designated as "Discover Card Master Trust I, Series 2001 - 3
Floating Rate Class A Credit Card Pass-Through Certificates" (the "Class A
Certificates"). The Class A Certificates and the Class B Certificates are
collectively referred to herein as the Investor Certificates.

          The aggregate interest represented by the Class B Certificates at any
time in the assets of the Trust shall not exceed an amount equal to the Class
Investor Interest of the Class B Certificates at such time, plus accrued but
unpaid Certificate Interest for the Class B Certificates and any interest
thereon. The Class B Certificateholders are also entitled to the benefit of the
Credit Enhancement, to the extent provided in the Series Supplement. The Class
Initial Investor Interest of the Class B Certificates is $39,474,000. The Class
B Invested Amount on any Distribution Date will be an amount equal to the Class
B Initial Investor Interest minus the sum of (a) the aggregate amount of
payments of Certificate Principal paid to the Class B Certificateholders prior
to such Distribution Date, (b) the aggregate amount of Investor Losses for such
Class not reimbursed prior to such Distribution Date and (c) the aggregate
amount of losses of principal on investments in funds on deposit for the benefit
of such Class in the Series Principal Funding Account. In addition to the
Investor Certificates, a Seller Certificate has been issued pursuant to the
Pooling and Servicing Agreement which represents, at any time, the undivided
interest in the Trust not represented by the Investor Certificates or the
investor certificates of any other Series of investor certificates then
outstanding. Subject to the terms and conditions of the Pooling and Servicing
Agreement, the Sellers may from time to time direct the

                                     A-2-4
<PAGE>   79

Trustee, on behalf of the Trust, to issue one or more new Series of investor
certificates, which will represent Fractional Undivided Interests in the Trust.

          During the Revolving Period, which begins on the Series Cut-Off Date,
and during the Accumulation Period, Certificate Interest will be distributed on
the 15th day of each calendar month with respect to interest accrued during the
preceding Interest Accrual Period, commencing in April 2001, or if such 15th day
is not a Business Day, on the next succeeding Business Day, and on the Class B
Expected Final Payment Date (each, an "Interest Payment Date"), to the Class B
Certificateholders of record as of the last day of the month preceding the
related Interest Payment Date. Principal on the Class B Certificates is
scheduled to be paid in a single payment on the Distribution Date in April 2006
(the "Class B Expected Final Payment Date"), but may be paid sooner or later or
in installments under certain circumstances. During the Amortization Period, if
any, Certificate Interest and Certificate Principal collected by the Master
Servicer will be distributed to the Class B Certificateholders on the
Distribution Date of each calendar month, commencing in the month following the
commencement of the Amortization Period; provided, however, that no Certificate
Principal will be distributed to the Class B Certificateholders until the Class
A Investor Interest has been reduced to zero. The rights of the Class B
Certificateholders to receive the distributions to which they would otherwise be
entitled on the Receivables will be subordinated to the rights of the Class A
Certificateholders and the Master Servicer to the extent described in the
Pooling and Servicing Agreement and Series Supplement. In any event, the final
payment of principal of either Class will be made no later than the first
Business Day following the Distribution Date in September 2008 (the "Series
Termination Date").

          The amount to be distributed on each Distribution Date to the holder
of this Class B Certificate will be equal to the product of (a) the percentage
equivalent of a fraction, the numerator of which is the portion of the Class B
Initial Investor Interest evidenced by this Class B Certificate and the
denominator of which is the Class B Initial Investor Interest and (b) the
aggregate of all payments to be made to the Class B Certificateholders on such
Distribution Date. Distributions with respect to this Class B Certificate will
be made by the Paying Agent by check mailed to the address of the Class B
Certificateholder of record appearing in the Certificate Register (except for
the final distribution in respect of this Class B Certificate) without the
presentation or surrender of this Class B Certificate or the making of any
notation thereon, except that with respect to Class B Certificates registered in
the name of Cede & Co., the nominee registrant for The Depository Trust Company,
distributions will be made in the form of immediately available funds.

          This Class B Certificate does not represent an obligation of, or an
interest in, the Master Servicer. This Class B Certificate is limited in right
of payment to certain Collections respecting the Receivables, all as more
specifically set forth hereinabove and in the Pooling and Servicing Agreement
and the Series Supplement.

          The Pooling and Servicing Agreement permits, with certain exceptions,
the amendment and modification of the rights and obligations of the Master
Servicer, and the rights of Investor Certificateholders under the Pooling and
Servicing Agreement and Series Supplement, at any

                                     A-2-5
<PAGE>   80

time by the Master Servicer, the Sellers and the Trustee in certain cases (some
of which require confirmation from the Rating Agencies that such amendment will
not result in the downgrading or withdrawal of the rating assigned to the
Investor Certificates) without the consent of the Investor Certificateholders,
and in all other cases with the consent of the Investor Certificateholders
owning Fractional Undivided Interests aggregating not less than 66-2/3% of the
Class Invested Amount of each such affected Class (and with confirmation from
the Rating Agencies that such amendment will not result in the downgrading or
withdrawal of the rating assigned to the Investor Certificates); provided,
however, that no such amendment shall (a) have a material adverse effect on any
Class of Investor Certificateholders by reducing in any manner the amount of, or
delaying the timing of, distributions which are required to be made on any
Investor Certificate without the consent of the affected Investor
Certificateholders or (b) reduce the aforesaid percentage required to consent to
any such amendment, without the consent of each Investor Certificateholder of
each affected Class then of record. Any such amendment and any such consent by
the Class B Certificateholder shall be conclusive and binding on such Class B
Certificateholder and upon all future Holders of this Class B Certificate and of
any Class B Certificate issued in exchange hereof or in lieu hereof whether or
not notation thereof is made upon this Class B Certificate.

          The transfer of this Class B Certificate shall be registered in the
Certificate Register upon surrender of this Investor Certificate for
registration of transfer at any office or agency maintained by the Transfer
Agent and Registrar accompanied by a written instrument of transfer in a form
satisfactory to the Trustee and the Transfer Agent and Registrar duly executed
by the Class B Certificateholder or such Class B Certificateholder's attorney
duly authorized in writing, and thereupon one or more new Class B Certificates
of authorized denominations and for the same aggregate Fractional Undivided
Interest will be issued to the designated transferee or transferees.

          The transfer of this Investor Certificate is subject to certain
restrictions set forth in the Pooling and Servicing Agreement. In no event shall
this Investor Certificate, or any interest therein, be transferred to an
employee benefit plan, trust or account subject to the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), or described in Section
4975(e)(1) of the Internal Revenue Code of 1986, as amended (the "Code"), and
not excepted under Section 4975(g). Any Holder of this Investor Certificate, by
its acceptance hereof, shall be deemed to represent and warrant that it is not
(i) an employee benefit plan (as defined in Section 3(3) of ERISA), that is
subject to Title I of ERISA, (ii) a plan described in Section 4975(e)(l) of the
Code, and not excepted under Section 4975(g), or (iii) an entity using assets to
purchase such Certificates which constitute plan assets by reason of a plan's
investment in such Holder.

          As provided in the Pooling and Servicing Agreement and subject to
certain limitations therein set forth, Class B Certificates are exchangeable for
new Class B Certificates evidencing like aggregate Fractional Undivided
Interests, as requested by the Class B Certificateholder surrendering such Class
B Certificates. No service charge may be imposed for any such exchange but the
Master Servicer or Transfer Agent and Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith.

                                     A-2-6
<PAGE>   81

          The Master Servicer, the Trustee, the Paying Agent and the Transfer
Agent, and any agent of any of them, may treat the person in whose name this
Class B Certificate is registered as the owner hereof for all purposes, and
neither the Master Servicer, the Trust nor the Trustee, the Paying Agent, the
Transfer Agent, nor any agent of any of them or any such agent shall be affected
by notice to the contrary except in certain circumstances described in the
Pooling and Servicing Agreement.

          Subject to certain conditions in the Pooling and Servicing Agreement
and the Series Supplement, if the principal of the Investor Certificates has not
been paid in full prior to the Series Termination Date, the obligations created
by the Pooling and Servicing Agreement and the Series Supplement with respect to
the Investor Certificates shall terminate on the Series Termination Date.

                                     A-2-7
<PAGE>   82

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

          This is one of the Class B Certificates referred to in the within
mentioned Pooling and Servicing Agreement and Series Supplement.

                                                U.S. BANK NATIONAL ASSOCIATION,
                                                as Trustee

                                                By:
                                                   -----------------------------
                                                         Authorized Officer

                                     A-2-8
<PAGE>   83
                                    Exhibit B

             Form of Investor Certificateholders' Monthly Statement

                          Discover Card Master Trust I

                        Series 2001 - 3 Monthly Statement

Distribution Date:  __________ __, ____         Month Ending: _________ __, ____

Pursuant to the Series Supplement dated as of March 15, 2001 relating to the
Pooling and Servicing Agreement dated as of October 1, 1993 by and between
Discover Bank and U.S. Bank National Association as Trustee, as amended, the
Trustee is required to prepare certain information each month regarding current
distributions to investors and the performance of the Trust. We have set forth
below this information for the Distribution Date listed above, as well as for
the calendar month ended on the date listed above.

1. Payments for the benefit of investors in Series 2001 - 3 on this Distribution
   Date (per $1,000 of Class Initial Investor Interest)

<TABLE>
<CAPTION>
                                       Total               Interest           Principal
<S>                                <C>                   <C>                 <C>
  Series 2001 - 3
   Class A (__days at ___%)        $____________         $____________       $____________

   Class B (__ days at ___%)       $____________         $____________       $____________

2. Principal Receivables at the end of [Month][Year]

   (a)      Aggregate Investor Interest                                      $____________

            Seller Interest                                                  $____________

            TOTAL MASTER TRUST                                               $____________

   (b)      Group One Investor Interest                                      $____________

   (c)      Series 2001 - 3 Series Investor Interest                         $____________

   (d)      Class A Investor Interest                                        $____________

            Class B Investor Interest                                        $____________

3. Allocation of Receivables collected during [Month][Year]

                                                     Finance Charge    Principal       Yield Collections/
                                                     Collections       Collections      Additional Funds

   (a)      Allocation of Collections between
            Investors and Seller

            Aggregate Investor Allocation               $____________     $___________     N/A

            Seller Allocation                           $____________     $___________     N/A

   (b)      Group One Allocation                        $____________     $___________     N/A

   (c)      Series 2001 - 3 Allocations                 $____________     $___________     N/A

   (d)      Class A Allocations                         $____________     $___________     N/A

            Class B Allocations                         $____________     $___________     N/A

   (e)      Principal Collections as a monthly percentage of Master Trust
            Receivables at the beginning of [Month][Year]                         ____________%

</TABLE>

                                      B-1
<PAGE>   84

<TABLE>
<S>                                                                             <C>
   (f)      Finance Charge Collections as an annualized percentage of Master
            Trust Receivables at the beginning of [Month][Year]                   ____________%

   (g)      Total Collections as a monthly percentage of Master Trust
            Receivables at the beginning of [Month][Year]                         ____________%

4. Information concerning the Series Principal Funding Accounts ("SPFA")

<CAPTION>
                     Deposits into the SPFAs on    Deficit Amount on
                       this Distribution Date     this Distribution Date     SPFA Balance   Investment Income
<S>                  <C>                          <C>                        <C>            <C>
   Series 2001 - 3           $________                   $______               $________        $_________
</TABLE>

5. Information concerning amount of Controlled Liquidation Payments

<TABLE>
<CAPTION>
                     Amount paid on this      Deficit Amount on this    Total Payments through
                      Distribution Date          Distribution Date      this Distribution Date
<S>                  <C>                      <C>                       <C>
   Series 2001 -  2        N/A                        N/A                       N/A
</TABLE>

6. Information concerning the Series Interest Funding Accounts ("SIFA")

<TABLE>
<CAPTION>
                              Deposits into the SIFA
                              on this Distribution Date          SIFA Balance
<S>                           <C>                                <C>
   Series 2001 - 3                  N/A                              N/A
</TABLE>

7. Investor Charged-Off Amount

                              This Distribution Date        Cumulative Investor
                                                            Charged-Off Amount

   (a)  Group One                  $_________                 $_________

   (b)  Series 2001 - 3            $_________                 $_________

   (c)  Class A                    $_________                 $_________

        Class B                    $_________                 $_________

   (d)  As an annualized percentage
        of Principal Receivables
        at the beginning of [Month]
        [Year]                     __________%                     N/A

8. Investor Losses on this Distribution Date

                                   Total                per $1,000 of original
                                                        invested Principal

   (a)  Group One                  $_________                 $_________

   (b)  Series 2001 - 3            $_________                 $_________

   (c)  Class A                    $_________                 $_________

        Class B                    $_________                 $_________

                                      B-2
<PAGE>   85

9. Reimbursement of Investor Losses on this Distribution Date

                                    Total                per $1,000 of original
                                                         invested Principal

    (a) Group One                   $_________                 $_________

    (b) Series 2001 - 3             $_________                 $_________

    (c) Class A                     $_________                 $_________

        Class B                     $_________                 $_________

10. Aggregate amount of Unreimbursed Investor Losses

                                    Total                per $1,000 of original
                                                         invested Principal

    (a) Group One                   $_________                 $_________

    (b) Series 2001 - 3             $_________                 $_________

    (c) Class A                     $_________                 $_________

        Class B                     $_________                 $_________

11. Investor Monthly Servicing Fee payable on this Distribution Date

    (a) Group One                   $_________

    (b) Series 2001 - 3             $_________

    (c) Class A                     $_________

        Class B                     $_________

12. Class Available Subordinated Amount at the end of the Distribution Date

                                    Total                as a percentage of
                                                         Class A Invested Amount

    Series 2001 - 3, Class B        $____________              _________ %

13. Total Available Credit Enhancement Amounts

                                    Shared Amount            Class B Amount

    (a) Maximum Amount                  N/A                    $__________

    (b) Available Amount                N/A                    $__________

    (c) Amount of drawings on
        Credit Enhancement on
        this Distribution Date          N/A                    $__________

    (d) Credit Enhancement Fee
        on this Distribution Date       N/A                    $__________

                                      B-3
<PAGE>   86

14. Delinquency Summary

    Master Trust Receivables Outstanding at the end of [Month][Year]  $_________

                                 Delinquent Amount       Percentage of ending
    Payment Status               ending balance         Receivables outstanding

    30 - 59 days                $__________________        __________%

    60 - 179 days               $__________________        __________%

15. Excess Spread Percentages on this Distribution Date(1)

    (a) Group One(2)                __________%

    (b) Series 2001 - 3(3)          __________%

16. Net Charge-Offs on this Distribution Date

    Charges-offs net of recoveries as an annualized percentage
    of Principal Receivables at the beginning of [Month][Year](4)     _________%

                                                 U.S. BANK NATIONAL ASSOCIATION,
                                                 as Trustee

                                                 By:
                                                    ----------------------------

----------

(1)  For series in Group One, investors should refer only to the higher of the
     Group Excess Spread Percentage (Item 15(a)) and the Series Excess Spread
     Percentage (Item 15(b)) in assessing the current performance of the Trust
     and the Receivables.

(2)  Group Excess Spread is the sum of the Series Excess Spreads (as described
     below) for each series in the Group. The Group Excess Spread Percentage is
     equal to the Group Excess Spread, multiplied by twelve, divided by the
     Series Investor Interests for each series in the Group.

(3)  Series Excess Spread is the difference between (a) the sum of Finance
     Charge Collections, Yield Collections, Additional Funds and Investment
     Income for any Class of this Series (see Item 3(d)), and (b) the sum of (i)
     the monthly interest for each Class of this Series (see Item 1), (ii) the
     monthly servicing fee for each Class of this Series (see Item 11(c)), (iii)
     the Investor Charged-Off Amount (see Item 8(c)), and (iv) the Credit
     Enhancement Fee (see Item 13(d)), in each case for this Distribution Date.
     The Series Excess Spread Percentage is equal to the Series Excess Spread,
     multiplied by twelve, divided by the Series Investor Interest for this
     Series.

(4)  For purposes of allocations to investors, recoveries are treated as Finance
     Charge Collections and are included as such in Item 3 above.

                                      B-4
<PAGE>   87

                                    Exhibit C

                  Form of Master Servicer's Monthly Certificate

                  Discover Card Master Trust I, Series 2001 - 3

                                   CREDIT CARD

                            PASS-THROUGH CERTIFICATES

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

The undersigned, a duly authorized representative of Discover Bank, formerly
Greenwood Trust Company ("Discover Bank"), as Master Servicer pursuant to the
Pooling and Servicing Agreement dated as of October 1, 1993, as amended (the
"Pooling and Servicing Agreement"), and the Series Supplement, dated as of March
15, 2001 (the "Series Supplement") by and between Discover Bank and U.S. Bank
National Association (formerly First Bank National Association, successor
trustee to Bank of America Illinois, formerly Continental Bank, National
Association) as Trustee, does hereby certify as follows with respect to the
Series Supplement for the Discover Card Master Trust I, Series 2001 - 3
Certificates for the Distribution Date occurring on _______________:

1.  Discover Bank is Master Servicer under the Pooling and
    Servicing Agreement.

2.  The undersigned is a Servicing Officer of Discover Bank as
    Master Servicer.

3.  The aggregate amount of Collections processed during [month]
    [year] is equal to ............................................  $
                                                                      ------

4.  The aggregate amount of Class A Principal Collections processed
    during [month] [year] is equal to .............................  $
                                                                      ------

5.  The aggregate amount of Class A Finance Charge Collections
    processed during [month] [year] is equal to....................  $
                                                                      ------

6a. The aggregate amount of Class A Principal Collections
    recharacterized as Series Yield Collections during [month]
    [year] is equal to ............................................  $
                                                                      ------

6b. The aggregate amount of Class A Additional Funds for this
    Distribution Date is equal to .................................  $
                                                                      ------

                                      C-1
<PAGE>   88

7.   The sum of all amounts payable to the Class A
     Certificate-holders on the current Distribution Date is equal
     to............................................................  $
                                                                      ------
8.   The aggregate amount of Class B Principal Collections
     processed during [month] [year] is equal to ..................  $
                                                                      -----

9.   The aggregate amount of Class B Finance Charge Collections
     processed during [month] [year] is equal to...................  $
                                                                      ------

10a. The aggregate amount of Class B Principal Collections
     recharacterized as Series Yield Collections during [month]
     [year] is.....................................................  $
                                                                      -----

10b. The aggregate amount of Class B Additional Funds for this
     Distribution Date is equal to ................................  $
                                                                      -----

11.  The amount of drawings under the Credit Enhancement required
     to be made on the related Drawing Date pursuant to the Series
     Supplement:

     (a) with respect to the Class B Required Amount Shortfall is
         equal to .................................................  $-----

     (b) with respect to the Class B Cumulative Investor
         Charged-Off Amount is equal to ...........................  $-----

     (c) with respect to the Class B Investor Interest is equal
         to.................. .....................................  $
                                                                      ------

12.  The sum of all amounts payable to the Class B
     Certificate-holders on the current Distribution Date is equal
     to............................................................  $
                                                                      ------

13.  Attached hereto is a true copy of the statement required to be
     delivered by the Master Servicer on the date of this
     Certificate to the Trustee pursuant to Section 19 of the
     Series Supplement.

                                      C-2
<PAGE>   89

         IN WITNESS WHEREOF, the undersigned has duly executed and delivered
this certificate this ____ day of ____________ , ____.

                                                     DISCOVER BANK,
                                                     as Master Servicer

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

                                      C-3

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