Document:

<PAGE>   1
                                                                     EXHIBIT 4.8

                             PICTURETEL CORPORATION

                      NON-STATUTORY STOCK OPTION AGREEMENT

         1. Grant of Option.

              PictureTel Corporation, a Delaware corporation (the "Company"),
hereby grants to Mr. Dalton Edgecomb (the "Executive"), an option to purchase an
aggregate of 125,000 shares of authorized but not issued Common Stock of the
Company, $.01 par value ("Common Stock") (hereinafter referred to as the
"Option"), at a price of $2.63 per share, purchasable as set forth in and
subject to the terms and conditions of this Stock Option Agreement (the
"Agreement"). The Option is intended to be a non-statutory stock option and the
purchase price of the Option is 100% of the fair market value per share of the
Common Stock on the Grant Date. The date of grant of this Option is January 10,
2001 (hereinafter referred to as the "Grant Date") and the date ending twelve
(12) months thereafter and each subsequent three (3) month period thereafter is
hereinafter referred to as "First Exercise Date", "Second Exercise Date", "Third
Exercise Date", etc.

              In granting this Option, the Committee has determined that the
Option will advance the interests of PictureTel Corporation by enhancing its
ability to (a) attract and retain an executive who is in a position to make
significant contributions to the success of the Company and its subsidiaries and
(b) encourage this executive to take into account the long-term interests of the
Company through ownership of shares of the Company's common stock ("Stock").

         2. Exercise of Option and Provisions for Termination.

         (a) Exercise Schedule.

              Except as otherwise provided in this Agreement, this Option may be
exercised during the period ending ten (10) years after the Grant Date
(hereinafter the "Expiration Date"), on a cumulative basis as described below,
in installments as to not more than the following percentage of the shares
covered by this option during the respective installment periods set forth
below:

<TABLE>
<CAPTION>
                    Exercise Period                                                 Percentage (Number) of Option
                                                                                       Shares Exercisable
                                                                                       ------------------
<S>                                                                                 <C>                <C>
On and After the Grant Date and Prior to the First Exercise Date                       None
On and After the First Exercise Date and Prior to the Second Exercise Date                 25.00%      (31,250)
On and After the Second Exercise Date and Prior to the Third Exercise Date                 31.25%      (39,062)
On and After the Third Exercise Date and Prior to the Fourth Exercise Date                 37.50%      (46,875)
On and After the Fourth Exercise Date and Prior to the Fifth Exercise Date                 43.75%      (54,687)
On and After the Fifth Exercise Date and Prior to the Sixth Exercise Date                  50.00%      (62,500)
On and After the Sixth Exercise Date and Prior to the Seventh Exercise Date                56.25%      (70,312)
On and After the Seventh Exercise Date and Prior to the Eighth Exercise Date               62.50%      (78,125)
On and After the Eighth Exercise Date and Prior to the Ninth Exercise Date                 68.75%      (85,937)
On and After the Ninth Exercise Date and Prior to the Tenth Exercise Date                  75.00%      (93,750)
On and After the Tenth Exercise Date and Prior to the Eleventh Exercise Date               81.25%      (101,562)
On and After the Eleventh Exercise Date and Prior to the Twelfth Exercise Date             87.50%      (109,375)
On and After the Twelfth Exercise Date and Prior to the Thirteenth Exercise Date           93.75%      (117,187)
On and After the Thirteenth Exercise Date                                                 100.00%      (125,000)
</TABLE>

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              The right of exercise shall be cumulative so that if the Option is
not exercised to the maximum extent permissible during any exercise period it
shall be exercisable, in whole or in part, with respect to all shares not so
purchased at any time prior to the Expiration Date or the earlier termination of
this option. This Option may not be exercised at any time after the Expiration
Date.

         (b) Exercise Procedure.

              Subject to the conditions set forth in this Agreement, this option
shall be exercised by the Executive's delivery of written notice of exercise to
the Company, specifying the Option Grant Date, number of shares to be purchased,
and the purchase price to be paid therefor and accompanied by payment in full in
accordance with Section 3. below. Such exercise shall be effective upon receipt
by the Company of such written notice together with the required payment. The
Executive may purchase less than the total number of shares covered hereby,
provided that no partial exercise of this option may be for any fractional share
or for less than ten whole shares.

         (c) Continuous Employment Required.

              Except as otherwise provided in this Section 2., this option may
not be exercised unless the Executive, at the time he exercises this Option, is,
and has been at all times since the Grant Date of this Option, an employee of
one or more of the Company or a Subsidiary. A "Subsidiary" for purposes of this
Option shall be a corporation in which the Company owns directly or indirectly,
stock possessing fifty (50) percent of the total combined voting power of all
classes of stock. If this Option shall be assumed or a new option substituted
therefor in a transaction to which Section 425(a) of the Internal Revenue Code
of 1986, as amended (the "Code") applies, employment by such assuming or
substituting corporation (hereinafter called the "Successor Corporation") or a
Subsidiary thereof (but with the Successor Corporation substituted for the
Company) shall be considered for all purposes of this Option to be employment by
the Company or a Subsidiary, as the case may be.

         (d) Voluntary Termination of Employment.

              If the Executive voluntarily ceases to be employed by the Company
or Subsidiary, the right to exercise this Option shall terminate three (3)
months after such cessation (but in no event after the Expiration Date),
provided that this Option shall then be exercisable only to the extent that the
Executive was entitled to exercise this option on the date of such cessation.

                                      II-33
<PAGE>   3
         (e) Termination Upon Death or Disability.

              If the Executive dies or becomes disabled (within the meaning of
Section 105(d) (4) of the Code) prior to the Expiration Date, while he is in the
employ of the Company or a Subsidiary, this Option shall have the exercise
rights thereto accelerated so that for each full year of service with the
Company prior thereto, no less than twenty-five (25) percent of the aggregate
number of options covered hereby and not yet exercisable shall thereupon become
exercisable as of the termination date (not to exceed one hundred (100) percent
of the aggregate number of shares); all unexercised options for shares not
accelerated under the foregoing formula shall terminate as of the termination
day. All options that are exercisable after giving effect to the foregoing will
remain exercisable until one year following the date of death or disability of
the Executive (but in no event after the Expiration Date) by the Employee or by
the person to whom this option is transferred by will or the laws of descent and
distribution. Except as otherwise indicated by the context, the term
"Executive", as used in this Option, shall be deemed to include the estate of
the Executive, or any person who acquires the right to exercise this Option by
bequest or inheritance or otherwise by reason of death of the Executive or the
Executive's legal guardian in the event of disability.

         (f) Termination for Cause.

              If the Executive, prior to the Expiration Date, ceases his
employment with the Company or a Subsidiary because he is discharged for "Cause"
(as defined below), the right to exercise this Option shall be terminated
immediately by the Company upon such cessation of employment. "Cause" shall be
defined as and be limited to, conviction of a felony or willful misconduct or
gross negligence in the performance of duties which result in material harm to
PictureTel, as determined by the Compensation Committee of the Company, which
determination shall be conclusive.

         (g) Involuntary Termination-Without Cause.

              If prior to the Expiration Date, the employment of the Executive
is terminated by the Company or Subsidiary without Cause, the right to exercise
this Option shall terminate three (3) months after such cessation (but in no
event after the Expiration Date), provided that this Option shall then be
exercisable only to the extent that the Executive was entitled to exercise this
Option on the date of such cessation.

         (h) Termination Upon Retirement.

              If, prior to the Expiration Date, the Executive, prior to the
normal retirement date (as determined by the Committee), retires with the
consent of the Company, as determined by the Committee, the Executive shall be
entitled to exercise this Option on the same basis, terms and conditions as set
forth above in clause (d).

         (i) Leave of Absence.

              If the Executive, prior to the Expiration Date, is absent from
work under a leave of absence authorized under the Company's then current Human
Resources Policies and he does not return to work within the period provided by
the terms of such leave of absence, he shall be considered as having voluntarily
terminated his employment on such date as provided under the

                                      II-34
<PAGE>   4
Company's then current Human Resources Policies. However, for the purpose of
calculating the Percentage of Option Shares Exercisable under Section 2(a)
hereof, the period of the leave of absence shall not be credited and the
Executive shall have the right to exercise only that Percentage of Option Shares
Exercisable on the date the leave of absence commenced, subject to the
provisions of Section 2. (i). In addition, while the Executive is on a leave of
absence, he shall not be entitled to exercise this Option. Upon resuming full
status as an employee, the Executive shall be entitled to exercise this Option,
but with the period of leave of absence not credited under Section 2. (a), and
accordingly, the installment exercise periods in Section 2. (a) shall be
appropriately adjusted to give effect thereto.

         3. Payment of Purchase Price.

         (a) Method of Payment.

              Payment of the purchase price for shares purchased upon exercise
of this option shall be made by delivery to the Company of cash, certified
check, money order, or bank check (as the Company may require), to the order of
the Company in an amount equal to the purchase price of such shares, or by
delivery to the Company of shares of Common Stock of the Company then owned by
the Executive having a fair market value equal in amount to the purchase price
of such shares, or by delivery of an unconditional and irrevocable undertaking
by a broker to deliver to the Company sufficient funds to pay the exercise
price, or by any combination of such methods of payment. No shares of Common
Stock may be tendered or used in payment of the purchase price payable upon
exercise of this option unless the tendered shares have been held by the
Executive for at least six (6) months.

         (b) Valuation of Shares Tendered in Payment of Purchase Price.

              For the purposes hereof, the fair market value of any share of the
Company's Common Stock which may be delivered to the Company in exercise of this
Option shall be equal to the fair market value on the last business day
preceding the date of exercise as determined in good faith by the Committee.

         (c) Delivery of Shares Tendered in Payment of Purchase Price.

              If the Executive exercises this Option by delivery of shares of
Common Stock of the Company, the certificate or certificates representing the
shares of Common Stock of the Company to be delivered shall be duly executed in
blank by the Executive or shall be accompanied by a stock power duly executed in
blank suitable for purposes of transferring such shares to the Company.
Fractional shares of Common Stock of the Company will not be accepted in payment
of the purchase price shares acquired upon exercise of this Option.

         4. Delivery of Shares.

              The Company shall, upon payment of the option price for the number
of shares purchased and paid for, make prompt delivery of such shares to the
Executive, provided that if any law or regulation requires the Company to take
any action with respect to such shares before the issuance thereof, then the
date of delivery of such shares shall be extended for the period necessary to
complete such action. No shares shall be issued and delivered upon exercise of
any option unless and until, in the opinion of counsel for the Company, any
applicable registration

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<PAGE>   5
requirements of the Securities Act of 1933, any applicable listing requirements
of any national securities exchange on which stock of the same class is then
listed, and any other requirements of law or of any regulatory bodies having
jurisdiction over such issuance and delivery, shall have been fully complied
with.

         5. Non-transferability of Option.

              Except as provided in Section 2. (e), this Option is personal and
no rights granted hereunder may be transferred, assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) nor shall any
such rights be subject to execution, attachment or similar process. Upon any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this
Option or of such rights contrary to the provisions hereof, or upon the levy of
any attachment or similar process upon this option or such rights, this Option
and such rights shall, at the election of the Company, become null and void.
Notwithstanding the foregoing, a transfer for estate planning purposes may be
permitted by the Committee in its discretion.

         6. No Special Employment Rights.

              Nothing contained in the Option shall be construed as a contract
of employment between the Company or Subsidiary and the Executive, or as a right
of the Executive to be continued in the employ of the Company or Subsidiary, or
as a limitation of the right of the Company or Subsidiary to deal with the
Executive, and his hiring, discharge, layoff, compensation, and all other
conditions of employment in all respects as though this Option did not exist.
However, during the period of the Executive's employment, the Executive shall
render diligently and faithfully the services which are assigned from time to
time by the Board of Directors of the Company or Subsidiary and shall at no time
take any action which directly or indirectly would be inconsistent with the best
interests of the foregoing entities.

         7. Rights as a Shareholder.

              The Executive shall have no rights as a shareholder with respect
to any shares that may be purchased by exercise of this option unless and until
a certificate representing such shares is duly issued and delivered to the
Executive. Except as otherwise expressly provided in the Option, no adjustment
shall be made for dividends or other rights for which the record date is prior
to the date such stock certificate is issued.

         8. Adjustments in the Event of Certain Transactions.

         (a) In the event of a stock dividend, stock split or combination of
shares, recapitalization or other change in the Company's capitalization, or
other distribution to common shareholders other than normal cash dividends, the
Committee will make any appropriate adjustments to (i) the maximum number of
shares that may be delivered under this Option, (ii) the exercise price relating
to this Option, and (iii) any other provision of this Option affected by such
change.

         (b) In any event referred to in clause (a), The Committee may also make
such adjustments to take into account material changes in law or in accounting
practices or principles, mergers, consolidations, acquisitions, dispositions or
similar corporate transactions, or any other

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event, if it is determined by the Committee that adjustments are appropriate to
avoid distortion in the operation of this Option.

         9. Change in Control.

         (a) Change in Control.

              As used herein, a Change in Control and related definitions shall
have the meanings as set forth in Section 9. (b) below. Immediately prior to the
occurrence of a Change in Control, the Option, to the extent not then
exercisable, shall automatically become fully exercisable.

         (b) Change in Control and Related Definitions.

              A "Change in Control" shall be deemed to have occurred if the
conditions set forth in any one of the following paragraphs shall have been
satisfied: (i) any person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the company representing twenty-five (25) percent
or more of the combined voting power of the Company's then outstanding
securities; or (ii) during any period of not more than two consecutive years
(not including any period prior to December 31, 1995), individuals who at the
beginning of such period constitute the Board and any new director (other than a
director designated by a Person who has entered into an agreement with the
Company to effect a transaction described in Clause (i), (ii), or (iii) of
Section 9.(b)) whose election by the Board or nomination for election by the
shareholders of the Company was approved by a vote of at least two-thirds (2/3)
of the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority thereof; or (iii) the
shareholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than (1) a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or being
converted into voting securities of the surviving entity) sixty (60) percent or
more of the combined voting power of the voting securities of the Company or
such surviving entity outstanding immediately after such merger or
consolidation, or (2) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person
acquires twenty-five (25) percent or more of the combined voting power of the
Company's then outstanding securities; or (iv) the shareholders of the Company
approve a plan of complete liquidation of the Company or an agreement for the
sale or disposition by the Company of all or substantially all the Company's
assets.

              A "Person" shall have the meaning given in Section 3 (a) (9) of
the Securities Exchange Act of 1934, as modified and used in Sections 13 9D and
14 (d) thereof: however, a Person shall not include (1) the Company, or (2) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company, or (3) a corporation or other entity owned, directly or indirectly,
by the shareholders of the Company in substantially the same proportions as
their ownership of stock of the Company.

              A "Beneficial Owner" shall have the meaning defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended from time to time.

         10. Certain Corporate Transactions.

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         (a) In the event of a consolidation or merger in which the Company is
not the surviving corporation or which results in the acquisition of
substantially all the Company's outstanding Stock by a single person or entity
or by a group of persons and / or entities acting in concert, or in the event of
the complete liquidation of the Company or the sale or transfer of substantially
all of the Company's assets (a "Covered Transaction"), all outstanding Options
will terminate as of the effective date of the Covered Transaction, provided
that at least twenty (20) days prior to the effective date of any such merger,
consolidation, liquidation or sale of assets, but subject to clause (b) below,
the Committee shall make all outstanding Options exercisable immediately prior
to consummation of such Covered Transaction (to the extent that such Options are
not exercisable immediately prior to the consummation of the Covered Transaction
pursuant to Section 9).

         (b) With respect to an outstanding Option held by the Executive who,
following the Covered Transaction, will be employed by a corporation which is a
surviving or acquiring corporation in such transaction or an affiliate of such a
corporation, the Committee may, in lieu of the action of the Committee described
in clause (a) above or in addition to the Option being exercisable immediately
prior to consummation of the Covered Transaction pursuant to Section 9. above,
arrange to have such surviving or acquiring corporation or affiliate assume the
Option or grant to the Executive a replacement option which, in the judgment of
the Committee, is substantially equivalent to the Option.

         11. Withholding Taxes

              The Company's obligation to deliver shares upon the exercise of
this option shall be subject to the Executive 's satisfaction of all applicable,
minimum federal, state and local income tax withholding requirements.

         12. Administration.

              The Option shall be administered by the Compensation Committee of
the Board of Directors of the Company (the "Committee"), all of the members of
which Committee must be disinterested persons within the meaning of Rule 16b-3
under the Securities Exchange Act of 1934. Alternately, the Board of Directors
of the Company (the "Board") may serve as the Committee so long as a majority of
the members of the Board are disinterested persons within the meaning of Rule
16b-3.

              The Committee shall have the authority, not inconsistent with the
express provisions of the Option, to adopt, amend, rescind rules and regulations
for the administration of the option, accelerate the time at which all or part
of the Option may be exercised, waive any term or condition of the Option, with
the consent of the Executive, cancel the Option in whole or in part and grant a
new option, and interpret the Option and decide any questions and settle all
controversies and disputes that may arise in connection with the Option. Such
determinations and actions of the Committee, and all other determinations and
actions of the Committee made or taken under authority granted by any provision
of the Option, will be conclusive and will bind all parties. A majority of the
members of the Committee will constitute a quorum, and all determinations of the
Committee must be made by a majority of its members.

         13. Employment Rights.

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<PAGE>   8
              This Option does not confer upon the Executive any right to
continued employment with the Company or any subsidiary or affect in any way the
right of the Company or subsidiary to terminate an employment relationship at
any time. Except as specifically provided by the Committee, the loss of existing
or potential profit in this Option will not constitute an element of damages in
the event of termination of an employment relationship even if the termination
is in violation of an obligation of the Company to the Executive.

         14. Miscellaneous,

         (a) The grant of this Option will not affect the Company's right to
grant to the Executive options or other awards that are subject to the Company's
Equity Incentive Plan or other plans or are not subject to the plans, or to
issue to the Executive stock as a bonus or otherwise or adopt other plans or
arrangements under which stock may be issued to the Executive.

         (b) The Committee may at any time or times amend this Option for any
purpose which may at the time be permitted by law, provided that (except to the
extent expressly required or permitted by this Option) no such amendment may
adversely affect the rights of the Executive without the Executive's written
consent.

         (c) All notices under this Option shall be mailed or delivered by hand
to the parties at their respective addresses set forth beneath their names below
or at such other address as may be designated in writing by either of the
parties to one another.

         (d) This Option shall be governed by and construed in accordance with
the laws of the Commonwealth of Massachusetts.

         (e) Notwithstanding the provisions of any other restriction or term of
the Plan, (i) the exercise price of any option grants made under this Plan shall
be equal to, or in excess of, the fair market value of the Company's Common
Stock on the date of such grant; and (ii) the Company shall not, without the
approval of the holders of a majority of the Common Stock, decrease the exercise
price of any stock option grants made under the Plan; provided that such
restrictions shall not apply to the issuance of new options at a lower strike
price upon the cancellation of existing options; and provided further that,
notwithstanding any other provision of this Plan, the provisions of this Section
14(e) shall not be amended, modified, revoked, repealed or rescinded without the
approval of the holders of a majority of the Common Stock.

         (f) The Executive may only accept this Option by executing this
Agreement and delivering the Agreement to the Company not later than 5:00 P.M.
Boston time, on March 1, 2001 (the "Offer Termination Date"). Any Agreement
received after the Offer Termination Date shall be null and void and the grant
of this stock option shall be deemed rescinded.

Date of Grant: January 10, 2001                   PictureTel Corporation
                                                  100 Minuteman Road
                                                  Andover, MA 01810

                                                  By: ________________________

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<PAGE>   9
               Executive's Acceptance Signature on Following Page

                             EXECUTIVE'S ACCEPTANCE

         The undersigned hereby accepts the foregoing option and agrees to the
terms and conditions thereof.

                                                    EXECUTIVE

                                           Signature: _________________________

                                          Print Name: _________________________

                                             Address: _________________________

                                                      _________________________

                                      II-40<PAGE>   1
                                                                     EXHIBIT 4.1

               ==================================================

                                 DISCOVER BANK
                      Master Servicer, Servicer and Seller

                                      and

                         U.S. BANK NATIONAL ASSOCIATION
                                    Trustee

                      on behalf of the Certificateholders

                             FIFTH AMENDMENT TO THE
                        POOLING AND SERVICING AGREEMENT
                          Dated as of October 1, 1993

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

                          DISCOVER CARD MASTER TRUST I

               ==================================================

                                  Dated as of
                                 March 30, 2001

<PAGE>   2
                  THIS FIFTH AMENDMENT TO THE POOLING AND SERVICING AGREEMENT
(the "Amendment"), dated as of March 30, 2001, is entered into by and between
DISCOVER BANK (formerly Greenwood Trust Company), a Delaware banking
corporation, as Master Servicer, Servicer and Seller ("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.

                  WHEREAS, Discover Bank and the Trustee have entered into the
POOLING AND SERVICING AGREEMENT (the "Agreement") dated as of October 1, 1993
relating to Discover Card Master Trust I; and

                  WHEREAS, pursuant to subsection 13.01(a) of the Agreement,
Discover Bank and the Trustee desire to amend Sections 2.11, 3.02, 12.01, 12.02,
12.03 and 13.01 thereof in a manner that shall not adversely affect in any
material respect the interests of the Holders of any Class of any Series then
outstanding.

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

                  1.       Definitions.  Unless otherwise specified, capitalized
terms used in this Amendment shall have the same meanings ascribed to them in
the Agreement.

                  2.       Amendments to Section 2.11.

                           (a)      Section 2.11(a) is hereby amended and
                                    restated in its entirety to read as follows:

                                    (a) Optional Removals. From time to time,
                                    Discover Bank on behalf of the Holder of the
                                    Seller Certificate may, but shall not be
                                    obligated to, designate Accounts for
                                    deletion and removal from the Trust
                                    ("Removed Accounts"), such deletion and
                                    removal to be effective as of the day
                                    specified in the notice referred to in the
                                    following sentence, which may be any day
                                    with respect to removals of Accounts
                                    specified in Section 2.11(b)(vi)(A) and
                                    which shall be the last day of any Due
                                    Period with respect to removals of Accounts
                                    specified in Section 2.11(b)(vi)(B) or (C)
                                    (any such effective date, the "Removal
                                    Date"), subject to the notice requirement
                                    and other conditions set forth below. On or
                                    before the fifth Business Day prior to the
                                    Removal Date (the "Removal Notice Date"),
                                    Discover Bank on behalf of the Holder of the
                                    Seller Certificate shall give the Trustee,
                                    the Master Servicer and any Credit
                                    Enhancement Provider written notice that the
                                    Receivables from such Removed Accounts are
                                    to be reassigned by the Trustee

<PAGE>   3
                                    to Discover Bank on behalf of the Holder of
                                    the Seller Certificate effective as of the
                                    Removal Date.

                           (b)      Section 2.11(b) is hereby amended and
                                    restated in its entirety to read as follows:

                                    (b) Conditions to the Designation of Removed
                                    Accounts. Discover Bank on behalf of the
                                    Holder of the Seller Certificate shall be
                                    permitted to designate and require
                                    reassignment to the Holder of the Seller
                                    Certificate of the Receivables from Removed
                                    Accounts only upon satisfaction of the
                                    following conditions:

                                            (i) As of the Removal Date, the
                                            aggregate amount of Principal
                                            Receivables in the Trust, less the
                                            aggregate amount of Principal
                                            Receivables in such Removed
                                            Accounts, shall not be less than the
                                            Minimum Principal Receivables
                                            Balance;

                                            (ii) The removal of the Removed
                                            Accounts on any Removal Date shall
                                            not, in the reasonable belief of
                                            Discover Bank cause either (A) an
                                            Amortization Event to occur or (B)
                                            the Deficit Accumulation Amount or
                                            Deficit Liquidation Amount, as
                                            applicable, with respect to any
                                            Series then outstanding on any
                                            Distribution Date to be greater than
                                            zero;

                                            (iii) On or prior to the fifth
                                            Business Day following the Removal
                                            Date, the Seller or Sellers with
                                            respect to such Removed Accounts
                                            shall have delivered to the Trustee
                                            (A) for execution a written
                                            assignment substantially in the form
                                            of Exhibit C hereto, which shall
                                            include a warranty of the Trustee
                                            that since the date of transfer by
                                            such Seller or Sellers under this
                                            Agreement the Trustee has not sold,
                                            transferred or encumbered any such
                                            Receivable or interest therein and
                                            (B) a computer file, microfiche list
                                            or hard copy containing a true and
                                            complete list of all such Removed
                                            Accounts identified by originator
                                            and account number and containing
                                            the amount of Principal Receivables
                                            in such Removed Accounts as of the
                                            Removal Date, which computer file or
                                            microfiche list shall as of the
                                            Removal Date modify and amend
                                            Schedule 1 hereto by deleting
                                            therefrom information with respect
                                            to any Removed Account and be made a
                                            part of this Agreement;

                                            (iv) Discover Bank on behalf of
                                            the Holder of the Seller Certificate
                                            shall represent and warrant that no
                                            selection

                                       2
<PAGE>   4
                                            procedures believed by Discover Bank
                                            to be materially adverse to the
                                            interests of the Holders of any
                                            Class of any Series then
                                            outstanding, or any Credit
                                            Enhancement Provider, were utilized
                                            in selecting the Removed Accounts;

                                            (v) Discover Bank on behalf of the
                                            Holder of the Seller Certificate
                                            shall have delivered notice of such
                                            proposed reassignment to the Rating
                                            Agencies and the Rating Agencies
                                            shall have advised Discover Bank
                                            that such reassignment would not
                                            cause the rating of any Class of any
                                            Series then outstanding to be
                                            lowered or withdrawn;

                                            (vi)     The Removed Accounts shall
                                            meet one of the following criteria:

                                                     (A) Each of such Accounts
                                                     is a Charged-Off Account;
                                                     provided that Discover Bank
                                                     shall transfer to the Trust
                                                     all proceeds received with
                                                     respect to any Removed
                                                     Account that is a
                                                     Charged-Off Account, such
                                                     amounts to constitute
                                                     Recovered Amounts under the
                                                     terms of this Agreement;

                                                     (B) Such Accounts were
                                                     randomly selected from the
                                                     Accounts; provided that
                                                     such random selection
                                                     process need not include
                                                     selection of Charged-Off
                                                     Accounts; or

                                                     (C) Such Accounts were
                                                     originated or maintained in
                                                     connection with an affinity
                                                     or private-label
                                                     arrangement, and such
                                                     affinity or private-label
                                                     arrangement has been
                                                     cancelled by a third party
                                                     or has expired; provided,
                                                     however, that Accounts
                                                     originated or maintained
                                                     pursuant to an affinity or
                                                     private-label arrangement
                                                     shall only be removed
                                                     pursuant to this Section
                                                     2.11(b)(vi)(C) if, prior to
                                                     the cancellation or
                                                     expiration of such
                                                     arrangement, the Master
                                                     Servicer designated such
                                                     arrangement in writing to
                                                     the Trustee as an
                                                     arrangement with respect to
                                                     which these provisions
                                                     apply; and

                                            (vii) Discover Bank on behalf of the
                                            Holder of the Seller Certificate
                                            shall have delivered to the Trustee
                                            an Officer's Certificate confirming
                                            the items set forth in (i), (ii),
                                            (iv), (v) and (vi) above. The
                                            Trustee may conclusively rely on
                                            such Officer's Certificate, shall
                                            have no duty to make inquiries

                                       3
<PAGE>   5
                                            with regard to the matters set forth
                                            therein and shall incur no liability
                                            in so relying.

                           Upon satisfaction of the above conditions, the
                  Trustee shall execute and deliver the reassignment to Discover
                  Bank on behalf of the Holder of the Seller Certificate, and
                  the Receivables from the Removed Accounts shall no longer
                  constitute a part of the Trust.

                  3.       Amendments to Section 3.02.

                           (a)      Section 3.02(e) is hereby amended and
                                    restated in its entirety to read as follows:

                                    (e) No Servicer may sell receivables in
                                    Charged-Off Accounts pursuant to Section
                                    3.02(b)(iii) after March 31, 2001; provided,
                                    however, that to the extent that the
                                    Trustee, on behalf of the Trust, entered
                                    into agreements with third parties on or
                                    before March 31, 2001 that permit the Trust
                                    to require, or obligate the Trust to accept,
                                    reassignment of receivables in Charged-Off
                                    Accounts sold prior to March 31, 2001
                                    pursuant to such agreements, and to
                                    substitute receivables in Charged-Off
                                    Accounts for such reassigned receivables,
                                    then the Trust shall be entitled to act
                                    under such agreements and to substitute
                                    receivables for such reassigned receivables,
                                    such substitute receivables to be identified
                                    by the Master Servicer as meeting the
                                    requirements of such agreements; provided,
                                    further, however, that the Master Servicer
                                    shall use its best efforts to identify an
                                    amount of substitute receivables that
                                    closely approximates the amount of
                                    reassigned receivables and that will satisfy
                                    the substitution requirements of any such
                                    agreement.

                  4.       Amendments to Section 12.01.

                           (a)      Section 12.01(b) is hereby amended and
                                    restated in its entirety to read as follows:

                                    (b) If as of the Distribution Date with
                                    respect to each Series then outstanding in
                                    the month immediately preceding the month in
                                    which the Final Trust Termination Date
                                    occurs the Aggregate Investor Interest would
                                    be greater than zero (after giving effect to
                                    all transfers, withdrawals and deposits to
                                    occur on such date pursuant to applicable
                                    Series Supplements), Receivables (or
                                    interests therein), which shall be selected
                                    at random from the Receivables, in an amount
                                    sufficient to yield proceeds equal to the
                                    Aggregate Investor Interest plus any accrued
                                    and unpaid Certificate Interest with respect
                                    to each outstanding Series and any amounts
                                    owing to any Credit Enhancement Provider
                                    with respect to any

                                       4
<PAGE>   6
                                    outstanding Series pursuant to the
                                    applicable Series Supplement (after giving
                                    effect to such transfers, withdrawals and
                                    deposits) shall be sold on behalf of the
                                    Trust before the Final Trust Termination
                                    Date by an institution acceptable to the
                                    Trustee and the Master Servicer that is
                                    either (i) a nationally recognized
                                    investment bank, (ii) a nationally
                                    recognized commercial bank or (iii) any
                                    other institution whose regular business
                                    includes the sale of receivables or trust
                                    certificates similar to the Investor
                                    Certificates, and the proceeds therefor
                                    shall be paid to the Trust on or prior to
                                    the last Distribution Date with respect to
                                    each Series then outstanding. No Seller and
                                    no affiliate or agent of any Seller shall be
                                    permitted to bid for or purchase Receivables
                                    pursuant to this Section 12.01(b); provided,
                                    however, that an affiliate or agent of any
                                    Seller may act as selling institution for
                                    the sale as specified in the preceding
                                    sentence, so long as such affiliate or agent
                                    does not act as principal in connection with
                                    such sale. The proceeds of such sale shall
                                    be treated as Collections on the Receivables
                                    and shall be allocated among outstanding
                                    Series and deposited in accordance with
                                    Section 4.03 and the applicable Series
                                    Supplements; provided, however, that any
                                    such proceeds received after the end of the
                                    Due Period related to the last Distribution
                                    Date before the Final Trust Termination Date
                                    shall nevertheless be deemed to have been
                                    received during such Due Period. During such
                                    period ending on such Distribution Date, the
                                    Master Servicer and the Servicers shall
                                    continue to process Collections on the
                                    Receivables and deposit such Collections in
                                    accordance with the provisions of Section
                                    4.03. Section 12.03 will apply with respect
                                    to any Receivables not sold pursuant to this
                                    Section 12.01(b).

                  5.       Amendments to Section 12.02.

                           (a)      Section 12.02(c) is hereby amended and
                                    restated in its entirety to read as follows:

                                    (c) If as of the Distribution Date in the
                                    month immediately preceding the month in
                                    which a Series Termination Date occurs, the
                                    Series Investor Interest with respect to
                                    such Series is greater than zero (after
                                    giving effect to all transfers, withdrawals
                                    and deposits to occur on such date),
                                    Receivables (or interests therein) in an
                                    amount sufficient to yield proceeds equal to
                                    the Series Investor Interest plus any
                                    accrued and unpaid Certificate Interest and
                                    with respect to such Series and any amounts
                                    owing to the Credit Enhancement Provider
                                    with respect to such Series pursuant to the
                                    Series Supplement for such Series, if
                                    applicable, on such Series Termination Date
                                    (after giving effect to such transfers,
                                    withdrawals and deposits) shall be sold on
                                    behalf of the Trust by an institution
                                    acceptable to the

                                       5
<PAGE>   7
                                    Trustee and the Master Servicer that is
                                    either (i) a nationally recognized
                                    investment bank, (ii) a nationally
                                    recognized commercial bank or (iii) any
                                    other institution whose regular business
                                    includes the sale of receivables or of trust
                                    certificates similar to the Investor
                                    Certificates; provided, however, that in no
                                    event shall the amount of Receivables sold
                                    hereunder with respect to any Series exceed
                                    the product of (A) the aggregate amount of
                                    Receivables in the Trust and (B) a fraction
                                    the numerator of which is the Series
                                    Investor Interest of such Series and the
                                    denominator of which is the Aggregate
                                    Investor Interest, in each case, on such
                                    Distribution Date in the month immediately
                                    preceding the month in which such Series
                                    Termination Date occurs; and provided,
                                    further, the Receivables selected to be sold
                                    hereunder shall not be materially different
                                    from the Receivables remaining in the Trust
                                    as of such Distribution Date and shall be
                                    selected at random from the Receivables. The
                                    proceeds (the "Series Termination Proceeds")
                                    therefrom shall be paid to the Trust and
                                    immediately deposited into the Series
                                    Distribution Account with respect to such
                                    Series and paid to the Investor
                                    Certificateholders of such Series and to the
                                    Credit Enhancement Provider or otherwise, if
                                    applicable, pursuant to the terms of the
                                    Series Supplement, on the Distribution Date
                                    with respect to such Series immediately
                                    following such deposit. Such payment shall
                                    be deemed to be the final distribution with
                                    respect to such Series. No Seller and no
                                    affiliate or agent of any Seller shall be
                                    permitted to bid for or purchase Receivables
                                    pursuant to this Section 12.02(c); provided,
                                    however, that an affiliate or agent may act
                                    as selling institution for the sale as
                                    specified in the first sentence of this
                                    Section 12.02(c), so long as such affiliate
                                    or agent does not act as principal in
                                    connection with such sale.

                   6.       Amendments to Section 12.03.

                           (a)      Section 12.03 is hereby amended and restated
                                    in its entirety to read as follows:

                                    12.03 Sellers' Termination Rights. Upon the
                                    termination of the Sellers' obligations and
                                    responsibilities with respect to the Trust
                                    pursuant to Section 12.01 and the surrender,
                                    if applicable, of any certificated Seller
                                    Certificate, the Trustee shall distribute to
                                    each Holder of the Seller Certificate such
                                    Holder's pro rata share of any Receivables
                                    and cash remaining in the Trust in respect
                                    of the Seller Interest. Such distribution
                                    will be made without recourse,
                                    representation or warranty except for the
                                    warranty that since the date of transfer by
                                    any Seller under this Agreement, the Trustee
                                    has not sold, transferred or encumbered any
                                    such Receivables or interests therein. Such
                                    distribution shall transfer all right, title
                                    and

                                       6
<PAGE>   8
                                    interest of the Trust in the Receivables,
                                    whether then existing or thereafter created,
                                    and all proceeds thereof except, if
                                    applicable, for amounts held by the Trustee
                                    pursuant to Section 12.02(b). The Trustee
                                    shall execute and deliver such instruments
                                    of transfer and assignment including,
                                    without limitation, any document necessary
                                    to release the Trust's security interest in
                                    such Receivables and to release any filing
                                    evidencing or perfecting such security
                                    interest, in each case without recourse, as
                                    shall be reasonably requested by the Holder
                                    of the Seller Certificate to vest in the
                                    Holder of the Seller Certificate all right,
                                    title and interest which the Trust had in
                                    the Receivables.

                   7.       Amendments to Section 13.01.

                           (a)      Immediately following the semicolon at the
                                    end of Section 13.01(a)(i) the following
                                    clause is added:

                                    and provided, further, that the permitted
                                    activities of the Trust may be significantly
                                    changed pursuant to this Section 13.01(a)
                                    only with the consent of the Holders of
                                    Investor Certificates evidencing Fractional
                                    Undivided Interests aggregating not less
                                    than 51% of the Aggregate Invested Amount
                                    (such percentage to be calculated without
                                    taking into account the Class Invested
                                    Amount represented by any Investor
                                    Certificates beneficially owned by any
                                    Seller or any affiliate or agent of any
                                    Seller);

                           (b)      Immediately following the semicolon at the
                                    end of Section 13.01(a)(ii) the following
                                    clause is added:

                                    and provided, further, that the permitted
                                    activities of the Trust may be significantly
                                    changed pursuant to this Section 13.01(a)
                                    only with the consent of the Holders of
                                    Investor Certificates evidencing Fractional
                                    Undivided Interests aggregating not less
                                    than 51% of the Aggregate Invested Amount
                                    (such percentage to be calculated without
                                    taking into account the Class Invested
                                    Amount represented by any Investor
                                    Certificates beneficially owned by any
                                    Seller or any affiliate or agent of any
                                    Seller);

                           (c)      The second to last sentence of Section
                                    13.01(b) is deleted and replaced with:

                                    For purposes of calculating whether a 66-2/3
                                    % consent has been achieved pursuant to this
                                    Section 13.01(b), the applicable Class
                                    Invested Amount or Series Invested Amount
                                    shall be calculated without taking into
                                    account the Class Invested Amount
                                    represented by any Investor Certificates
                                    beneficially owned by any Seller or any

                                       7
<PAGE>   9
                                    affiliate or agent of any Seller, and no
                                    Seller or affiliate or agent of a Seller
                                    shall be entitled to vote on any amendment
                                    pursuant to this Section 13.01(b).
                                    Notwithstanding the foregoing, the permitted
                                    activities of the Trust may be significantly
                                    changed pursuant to this Section 13.01(b)
                                    only with the consent of the Holders of
                                    Investor Certificates evidencing Fractional
                                    Undivided Interests aggregating not less
                                    than 51% of the Aggregate Invested Amount
                                    (such percentage to be calculated without
                                    taking into account the Class Invested
                                    Amount represented by any Investor
                                    Certificates beneficially owned by any
                                    Seller or any affiliate or agent of any
                                    Seller).

                  8.       Effect Upon the Agreement.  Except as specifically
set forth herein, the Agreement shall remain in full force and effect and is
hereby ratified and confirmed.

                  9.       Counterparts.  This Amendment may be executed in two
or more counterparts (and by different parties on separate counterparts), each
of which shall be an original, but all of which together shall constitute one
and the same instrument.

                                       8
<PAGE>   10
                           IN WITNESS WHEREOF, Discover Bank and the Trustee
have caused this Amendment to be duly executed by their respective officers as
of the day and year first above written.

                                     DISCOVER BANK, as Master
                                       Servicer, Servicer and Seller

                                     By: /s/ Michael F. Rickert
                                         -----------------------------------
                                     Name:   Michael F. Rickert
                                     Title:  Vice President, Chief Accounting
                                             Officer and Treasurer

                                     U.S. BANK NATIONAL ASSOCIATION, as Trustee

                                     By: /s/ Nancie Arvin
                                         ------------------------------------
                                     Name:  Nancie Arvin
                                     Title:  Vice President

                                       9

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