Document:

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                                                                     EXHIBIT 4.3

        THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
        HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND MAY
        NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED
        EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH
        SECURITIES WHICH IS EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN
        AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT RELATING TO THE
        DISPOSITION OF SECURITIES AND (3) IN ACCORDANCE WITH APPLICABLE STATE
        SECURITIES AND BLUE SKY LAWS.

                                     WARRANT

       WARRANT TO PURCHASE ONE MILLION (1,000,000) SHARES OF COMMON STOCK

                                       OF

                       SONUS COMMUNICATION HOLDINGS, INC.

                        Date of Issuance: January 3, 2001

                                  No.__________

        THIS CERTIFIES that, for value received, QUADRANT MANAGEMENT, INC., or
its assigns (in either case, the "Holder") is entitled to purchase, subject to
the provisions of this Warrant, from SONUS COMMUNICATION HOLDINGS, INC., a
Delaware corporation (the "Company"), at the price per share set forth in
Section 8 hereof, the number of shares of the Company's common stock, $.0001 par
value per share (the "Common Stock"), set forth in Section 7 hereof. This
Warrant is referred to herein as the "Warrant" and the shares of Common Stock
issuable pursuant to the terms hereof are sometimes referred to herein as
"Warrant Shares".

        Section 1. Exercise of Warrant. To exercise this Warrant in whole or in
part, the Holder shall deliver to the Company at its principal office, (a) a
written notice, in substantially the form of the exercise notice attached hereto
(the "Exercise Notice"), of the Holder's election to exercise this Warrant,
which notice shall specify the number of shares of Common Stock to be purchased,
(b) a check in the amount of the aggregate exercise price for the Warrant Shares
being purchased, and (c) this Warrant. The Company shall as promptly as
practicable, and in any event within twenty (20) days after delivery to the
Company of (i) the Exercise Notice, (ii) the check mentioned above, and (iii)
this Warrant, execute and deliver or cause to be executed and delivered, in
accordance with such notice, a certificate or certificates representing the
aggregate number of shares of Common Stock specified in such notice, provided
the Warrants specified in such notice have vested on or prior to the date such
notice is delivered. If the Holder elects to purchase, at any time, less than
the number of shares of Common Stock then purchasable under the terms of this
Warrant, the Company shall issue to the Holder a new Warrant exercisable into

<PAGE>   2

the number of remaining shares of Common Stock purchasable under this Warrant.
Each certificate representing Warrant Shares shall bear the legend or legends
required by applicable securities laws as well as such other legend(s) the
Company requires to be included on certificates for its Common Stock. The
Company shall pay all expenses, taxes and other charges payable in connection
with the preparation, issuance and delivery of such stock certificates except
that, in case such stock certificates shall be registered in a name or names
other than the name of the Holder, funds sufficient to pay all stock transfer
taxes that are payable upon the issuance of such stock certificate or
certificates shall be paid by the Holder at the time of delivering the Exercise
Notice. All shares of Common Stock issued upon the exercise of this Warrant
shall be validly issued, fully paid, and nonassessable. This Warrant may be
exercised on multiple occasions in amounts not less than 15% of the original
amount issued before the expiration of its term as described in this Section 1.
This Warrant will expire on the third anniversary of the date of issuance (the
"Expiration Date").

        Section 2. Reservation of Shares. The Company hereby covenants that at
all times during the term of this Warrant there shall be reserved for issuance
such number of shares of its Common Stock as shall be required to be issued upon
exercise of this Warrant.

        Section 3. Fractional Shares. This Warrant may be exercised only for a
whole number of shares of Common Stock, and no fractional shares or scrip
representing fractional shares shall be issuable upon the exercise of this
Warrant.

        Section 4. Transfer of Warrant and Warrant Shares. The Holder may sell,
pledge, hypothecate, or otherwise transfer this Warrant, in whole or in part,
only in accordance with and subject to the terms and conditions set forth in the
Subscription Agreement and then only if such sale, pledge, hypothecation, or
transfer is made in compliance with the Act or pursuant to an available
exemption from registration under the Act relating to the disposition of
securities, and is made in accordance with applicable State securities laws.

        Section 5. Loss of Warrant. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, or destruction of this Warrant, and of
indemnification satisfactory to it, or upon surrender and cancellation of this
Warrant, if mutilated, the Company will execute and deliver a new Warrant of
like tenor.

        Section 6. Rights of the Holder. No provision of this Warrant shall be
construed as conferring upon the Holder the right to vote, consent, receive
dividends or receive notice other than as expressly provided herein. Prior to
exercise, no provision hereof, in the absence of affirmative action by the
Holder to exercise this Warrant, and no enumeration herein of the rights or
privileges of the Holder, shall give rise to any liability of the Holder for the
purchase price of any Warrant Shares or as a stockholder of the Company, whether
such liability is asserted by the Company or by creditors of the Company.

        Section 7. Number of Warrant Shares.  This Warrant shall be exercisable
for up to ONE MILLION (1,000,000) shares of the Company's Common Stock, as
adjusted in accordance with this Agreement.

        Section 8. Exercise Price; Redemption; Adjustment of Warrants.

                                      -2-
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        (a) Determination of Exercise Price. The per share purchase price (the
"Exercise Price") for each of the Warrant Shares purchasable under this Warrant
shall be equal to two cents ($0.02).

        (b) Redemption of Warrants. In the event (i) a registration statement
has been filed under the Securities Act covering the Warrant Shares and other
securities which the Company is contractually obligated to register, and such
registration statement is declared effective by the Securities and Exchange
Commission, and (ii) the bid price of the Common Stock on the OTC Bulletin Board
or other exchange is $1.00 or higher for twenty consecutive trading days, the
Company shall have the option to deliver a redemption notice (the "Redemption
Notice") to the holder of this Warrant. Upon delivery of the Redemption Notice,
all Warrants which remain outstanding on the 30th day following delivery of the
Redemption Notice shall be automatically redeemed by the Company for $.0001 per
Warrant (the "Redemption Price"). All such unexercised Warrants shall be deemed
cancelled upon the Company's delivery of the Redemption Price to the Holder.
Upon receipt of the Redemption Price, Holder agrees to return any documentation
of the unexercised Warrants to the Company.

        (c) Adjustments for Stock Dividends, Distributions and Subdivisions. If
the Company at any time or from time to time after the original issue date shall
declare or pay any dividend or distribution on the Common Stock payable in
Common Stock, or effect a subdivision of the outstanding shares of Common Stock
into a greater number of shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in Common Stock), then the number of
shares of Common Stock into which this Warrant is exercisable shall be increased
to an amount which is equal to the product of (i) the number of shares of Common
Stock for which this Warrant is exercisable immediately prior to the stock
dividend, distribution or subdivision, as the case may be, and (ii) a fraction,
the numerator of which is equal to the number of shares of Common Stock issued
and outstanding after giving effect to such stock dividend, distribution or
subdivision, and the denominator of which is the number of shares of Common
Stock issued and outstanding prior to such stock dividend, distribution or
subdivision. If the outstanding shares of Common Stock shall be divided or
increased because of a stock dividend or distribution, by stock split or
otherwise, into a greater number of shares of Common Stock, the Exercise Price
in effect immediately prior to such dividend, distribution or division shall,
concurrently with the effectiveness of such division, dividend or distribution,
be proportionately decreased.

        (d) Adjustments for Combinations or Consolidation of Common Stock. If
the outstanding shares of Common Stock shall be combined or consolidated, by
reclassification, reverse stock split or otherwise, into a lesser number of
shares of Common Stock, then the number of shares of Common Stock into which
this Warrant is exercisable shall be decreased to an amount which is equal to
the product of (i) the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to combination or consolidation, as the case
may be, and (ii) a fraction, the numerator of which is equal to the number of
shares of Common Stock issued and outstanding after giving effect to such
combination or consolidation, and the denominator of which is the number of
shares of Common Stock issued and outstanding prior to such combination or
consolidation. If the outstanding shares of Common Stock shall be combined or
consolidated, by reclassification, reverse stock split or otherwise, into a
lesser number of shares of Common Stock, the Exercise Price in effect
immediately prior to such

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combination or consolidation shall, concurrently with the effectiveness of such
combination or consolidation, be proportionately increased.

        (e) Adjustment for Mergers or Reorganization, etc. In case of any
consolidation or merger of the Company with or into another corporation or the
conveyance of all or substantially all of the assets of the Company to another
corporation, this Warrant shall be exercisable into the number of shares of
stock or other securities or property to which a holder of the number of shares
of Common Stock of the Company deliverable upon exercise of this Warrant would
have been entitled upon such consolidation, merger or conveyance; and, in any
such case, appropriate adjustment (as determined by the Board of Directors of
the Company) shall be made in the application of the provisions herein set forth
with respect to the rights and interest thereafter of the holder of this
Warrant, to the end that the provisions set forth herein shall thereafter be
applicable, as nearly as reasonable may be, in relation to any shares of stock
or other property thereafter deliverable upon the exercise of this Warrant.

        (f) No Impairment. The Company will not, through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Company, but will at all times in good faith assist in the carrying out of all
the provisions of this Section 8 and in the taking of all such action as may be
necessary or appropriate in order to protect the exercise rights of the holder
of this Warrant against impairment.

        (g) Issue Taxes. The Company shall pay any and all issue and other taxes
that may be payable in respect of any issue or delivery of shares of Common
Stock on exercise of this Warrant, in whole or in part; provided, however, that
the Company shall not be obligated to pay any transfer taxes resulting from any
transfer requested by any holder in connection with any such exercise.

        (h) Reservation of Stock Issuable Upon Conversion. The Company shall at
all times reserve and keep available out of its authorized but unissued shares
of Common Stock, solely for the purpose of effecting the exercise of this
Warrant, such number of its shares of Common Stock as shall from time to time be
sufficient to effect the exercise of this Warrant; and if at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to
effect the exercise of this Warrant, the Company will take all appropriate
corporate action as may, in the opinion of its counsel, be necessary to increase
its authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purpose.

        Section 9.  Piggy-Back Registration Rights.

        (a) Grant of Piggy-Back Rights. In the event that the Company shall
hereafter initiate a registration of any of its common stock (a "Registered
Offering"), either for its own account or the account of any other holder or
holders of equity securities or securities convertible into equity securities of
the Company, other than (i) a registration relating solely to employee benefit
plans, (ii) a registration relating solely to a Rule 145 transaction, (iii) a
registration in which the only equity security being registered is capital stock
issuable upon conversion of convertible (or exchange of exchangeable) debt
securities which are also being registered, or (iv) an initial

                                      -4-
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public offering of the Company, the Company will provide the Holder with written
notice thereof within 30 days of the filing date of the first registration
statement filed in connection with the Registered Offering (the "Company
Notice"), and, subject to the other terms and conditions set forth in this
Section, include in such registration (and any related qualification under blue
sky laws or other compliance) and any underwriting involved therein, if any, the
Warrant Shares which the Holder requests to be included therein within 10 days
after the date of the Company Notice (collectively, the "Registrable
Securities").

        (b) Underwritten Registered Offering. If the Registered Offering of
which the Company gives notice is for a registered public offering involving an
underwriting, the Company shall so advise the Holder as a part of the Company
Notice. In such event, the Holder's rights to registration pursuant to this
Section 9 shall be conditioned upon the Holder's participation in such
underwriting, and the inclusion of the Holder's Registrable Securities in the
underwriting shall be limited to the extent provided herein. The Holder shall
(together with the Company and the other holders distributing their securities
through such underwriting, if any) enter into an underwriting agreement in
customary form with the managing underwriter selected for such underwriting by
the Company. Notwithstanding any other provision of this Section 9, if the
managing underwriter determines that marketing factors require a limitation of
the number of shares to be underwritten, the managing underwriter may limit the
number of the Holder's Registrable Securities to be included in such
registration to such number of the Holder's Registrable Securities which the
managing underwriter determines can be included in such underwriting without
reducing the number of shares to be sold by the Company pursuant to such
underwriting or by any persons or entities exercising demand registration rights
in connection with such registration. In such event, the Company shall so advise
the Holder and the number of shares (other than shares being registered by the
Company) that may be included in the registration and underwriting shall be
allocated among all the holders of the Company's shares wishing to participate
in the Registered Offering in proportion, as nearly as practicable, to the
respective amounts of shares held by such holders at the time of filing the
Registration Statement. To facilitate the allocation of shares in accordance
with the above provisions, the Company may round the number of shares allocated
to any holder to the nearest 100 shares. If the Holder disapproves of the terms
of any such underwriting, the Holder may elect to withdraw therefrom by written
notice to the Company and the managing underwriter. Any securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration, and
shall not be transferred in a public distribution prior to 180 days after the
effective date of the registration statement relating thereto, or such other
shorter period of time as the underwriters may require.

        (c) Termination and Withdrawal of Registration. The Company shall have
the right to terminate or withdraw any Registered Offering or other registration
prior to the effectiveness of such registration whether or not the Holder has
elected to include its Registrable Securities in such registration.

        (d) Expenses. All registration expenses incurred in connection with
registrations pursuant to this Section 9 shall be borne by the Company. Unless
otherwise stated, all selling expenses relating to the Holder's Registrable
Securities shall be borne by the Holder.

                                      -5-
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        (e) Notification Requirements. In the case of each registration,
qualification or compliance effected by the Company pursuant to this Agreement,
the Company will keep the Holder advised in writing as to the initiation of each
registration, qualification and compliance and as to the completion thereof. At
its expense the Company will:

               (i) prepare and file with the Commission a registration statement
with respect to such securities and use reasonable best efforts to cause such
registration statement to become and remain effective for at least one hundred
twenty (120) days or until the distribution described in the registration
statement has been completed, whichever first occurs; and

               (ii) furnish to the Holder, should the Holder participate in such
registration, and to the underwriters of the securities being registered such
reasonable number of copies of the registration statement, preliminary
prospectus, final prospectus and such other documents the Holder and/or the
underwriters may reasonably request in order to facilitate the public offering
of such securities.

        (f) Underwriting Agreement Governs. In the event the terms of this
Section 9 conflicts with the terms of any underwriting agreement in connection
with any registration hereunder, the terms of such underwriting agreement shall
control.

        (g) Information. If the Holder's Registrable Securities are to be
included in any Registered Offering, the Holder shall furnish to the Company
such information as the Company may request in writing and as shall be required
in connection with any registration, qualification or compliance referred to in
this Agreement.

        (h) Termination. The rights granted pursuant to this Section 9 shall
terminate at such time as the Company has registered the Holder's Registrable
Securities in a Registered Offering or other registration or when the Holder is
permitted to sell all of its Warrant Shares within any ninety day period under
Rule 144 promulgated under the Securities Act of 1933.

        Section 10. Certain Distributions. In case the Company shall, at any
time, prior to the Expiration Date set forth in Section 1 hereof, declare any
distribution of its assets to holders of its Common Stock as a partial
liquidation, distribution or by way of return of capital, other than as a
dividend payable out of earnings or any surplus legally available for dividends,
then the Holder shall be entitled, upon the proper exercise of this Warrant in
whole or in part prior to the effecting of such declaration, to receive, in
addition to the shares of Common Stock issuable on such exercise, the amount of
such assets (or at the option of the Company a sum equal to the value thereof at
the time of such distribution to holders of Common Stock as such value is
determined by the Board of Directors of the Company in good faith), which would
have been payable to the Holder had it been a holder of record of such shares of
Common Stock on the record date for the determination of those holders of Common
Stock entitled to such distribution.

        Section 11. Dissolution or Liquidation. In case the Company shall, at
any time prior to the Expiration Date set forth in Section 1 hereof, dissolve,
liquidate or wind up its affairs, the Holder shall be entitled, upon the proper
exercise of this Warrant in whole or in part and prior to any distribution
associated with such dissolution, liquidation, or winding up, to receive on such
exercise, in lieu of the shares of Common Stock to which the Holder would have
been entitled,

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the same kind and amount of assets as would have been distributed or paid to the
Holder upon any such dissolution, liquidation or winding up, with respect to
such shares of Common Stock had the Holder been a holder of record of such share
of Common Stock on the record date for the determination of those holders of
Common Stock entitled to receive any such dissolution, liquidation, or winding
up distribution.

        Section 12. Reclassification or Reorganization. In case of any
reclassification, capital reorganization or other change of outstanding shares
of Common Stock of the Company (other than a change in par value, or from par
value to no par value, or from no par value to par value, or as a result of an
issuance of Common Stock by way of dividend or other distribution or of a
subdivision or combination), the Company shall cause effective provision to be
made so that the Holder shall have the right thereafter by exercising this
Warrant, to purchase the kind and amount of shares of stock and other securities
and property receivable upon such reclassification, capital reorganization or
other change, by a holder of the number of shares of Common Stock which might
have been purchased upon exercise of this Warrant immediately prior to such
reclassification or change. Any such provision shall include provision for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Warrant. The foregoing provisions of this
Section 12 shall similarly apply to successive reclassifications, capital
reorganizations and changes of shares of Common Stock. In the event that in any
such capital reorganization, reclassification, or other change, additional
shares of Common Stock shall be issued in exchange, conversion, substitution or
payment, in whole or in part, for or of a security of the Company other than
Common Stock, any amount of the consideration received upon the issue thereof
being determined by the Board of Directors of the Company shall be final and
binding on the Holder.

        Section 13.   Indemnification.

        (a) Indemnification. The Holders agree, if any of Holders' Registrable
Securities are included in the securities as to which such registration,
qualification or compliance is being effected, to indemnify the Company, each of
its directors and officers, each underwriter, if any, of the Company's
securities covered by such a registration statement, each Person who controls
the Company or such underwriter within the meaning of Section 15 of the
Securities Act, and each other such holder, each of its officers and directors
and each Person controlling such holder within the meaning of Section 15 of the
Securities Act, against all claims, losses, damages and liabilities (or actions
in respect thereof) arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such holders, such directors, officers, Persons, underwriters or
control Persons for any legal or any other expenses reasonably incurred, as such
expenses are incurred, in connection with investigating or defending any such
claim, loss, damage, liability or action, in each case to the extent, but only
to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in
conformity with written information furnished to the Company by the Holder.
Notwithstanding the foregoing, the Holder's liability under this subsection
shall be limited in an amount equal to

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<PAGE>   8

the initial price of the Registrable Securities sold by the Holder, unless such
liability arises out of or is based on willful misconduct by the Holder.

        (b) Indemnification Procedure. Each party entitled to indemnification
under this Section (the "Indemnified Party") shall give notice to the party
required to provide indemnification (the "Indemnifying Party") after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not be
unreasonably withheld), and the Indemnified Party may participate in such
defense at such party's expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Agreement, unless the failure
to give such notice is materially prejudicial to an Indemnifying Party's ability
to defend such action, and provided further that the Indemnifying Party shall
not assume the defense for matters as to which there is a conflict of interest
or separate and different defenses. No Indemnifying Party, in the defense of any
such claim or litigation, shall, except with the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnified Party of a release from all liability in respect
to such claim or litigation.

        Section 14.  Miscellaneous.

        (a) Successors and Assigns. The terms and conditions of this Agreement
shall inure to the benefit of, and be binding upon, the respective successors
and assigns of the parties, except to the extent otherwise provided herein.
Nothing in this Agreement, express or implied, is intended to confer upon any
party, other than the parties hereto or their respective successors and assigns,
any rights, remedies, obligations or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

        (b)  Governing Law.  This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware, without regard to the
principles of conflict of laws thereof.

        (c) Counterparts; Delivery by Facsimile. This Agreement may be executed
in one or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Delivery of this
Agreement may be effected by facsimile.

        (d) Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

        (e) Notices. Unless otherwise provided, any notice required or permitted
hereunder shall be given by personal service upon the party to be notified, by
nationwide overnight delivery service or upon deposit with the United States
Post Office, by certified mail, return receipt requested and:

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<PAGE>   9

               i.  if to the Company, addressed to SONUS COMMUNICATION
HOLDINGS, INC., 55 John Street, New York, New York 10038, Attention: John K.
Friedman, with a copy to Cecil E. Martin, III, Esquire, McGuireWoods LLP, Seven
Saint Paul Street, Suite 1000, Baltimore, Maryland 21202-1626, or at such other
address as the Company may designate by notice to the Holder in accordance with
the provisions of this Section; and

               ii. if to the Warrant holder, at the address indicated on the
signature pages hereof, or at such other addresses as such Holder may designate
by notice to the Company in accordance with the provisions of this Section.

        (f) Amendments and Waivers. Any term of this Agreement may be amended
and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either prospectively or retroactively), only
with the written consent of the Company and a majority in interest of the
Holders receiving Warrants in the Offering.

        (g) Entire Agreement. This Agreement and the Security Agreement
(including the exhibits and schedules hereto) constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof
and supersede all prior agreements, understandings, negotiations and
discussions, whether oral or written, of the parties hereto.

        IN WITNESS WHEREOF, the undersigned hereby sets is hand and seal this
3rd day of January, 2001.

                                    SONUS COMMUNICATION HOLDINGS, INC.

                                    By:
                                       -----------------------------------------
                                    Name:   John K. Friedman
                                    Title:  President

                                    QUADRANT MANAGEMENT, INC.

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

                                      -9-
<PAGE>   10

                                 EXERCISE NOTICE

Dated:
       ---------------------

        The undersigned hereby irrevocably elects to exercise his, her or its
right to purchase _________ shares of the common stock, $.0001 par value per
share (the "Common Stock"), of SONUS COMMUNICATION HOLDINGS, INC., a Delaware
corporation (the "Company"), such right being pursuant to a Warrant dated
December ____, 2000, and as issued to the undersigned by the Company, and remits
herewith the sum of $______ in payment for same in accordance with the Exercise
Price specified in Section 8 of said Warrant.

<PAGE>   11

                                 ASSIGNMENT FORM

Dated: _____________________

        For value received QUADRANT MANAGEMENT, INC. hereby sells, assigns and
        transfers unto

        Name:
             --------------------------------------------
              (Please typewrite or print block letters)

        Address:
                  ---------------------------------------

    and appoints:
                 -----------------------------------
                 -----------------------------------

Attorney to transfer the said Warrant on the books of SONUS COMMUNICATION
HOLDINGS, INC. with full power of substitution in the premises.

                                            Signature:
                                                       -------------------------<PAGE>   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 May 24, 2001

                                       to

                         POOLING AND SERVICING AGREEMENT

                           Dated as of October 1, 1993

                      $1, 000,000,000 Class A Certificates

                        $52,632,000 Class B Certificates

                          DISCOVER CARD MASTER TRUST I

                          SERIES 2001 - 5 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..................27
SECTION 5.         Representations and Warranties of Other Servicers................................................27
SECTION 6.         Representations and Warranties of the Trustee....................................................27
SECTION 7.         Authentication of Certificates...................................................................28
SECTION 8.         Establishment and Administration of Investor Accounts and the Credit Enhancement Account.........28
SECTION 9.         Allocations of Collections.......................................................................32
SECTION 10.        Payments.........................................................................................45
SECTION 11.        Credit Enhancement...............................................................................48
SECTION 12.        Alternative Credit Support Election..............................................................50
SECTION 13.        Calculation of Investor Losses...................................................................51
SECTION 14.        Servicing Compensation...........................................................................52
SECTION 15.        Class Interest Rate Caps.........................................................................52
SECTION 16.        Class Interest Rate Swaps  ......................................................................54
SECTION 17.        Investor Certificateholders' Monthly Statement...................................................54
SECTION 18.        Master Servicer's Monthly Certificate............................................................54
SECTION 19.        Notices..........................................................................................54
SECTION 20.        Additional Amortization Events...................................................................54
SECTION 21.        Early Accumulation Events; Additional Amortization Events........................................55
SECTION 22.        Purchase of Investor Certificates and Series Termination.........................................56
SECTION 23.        Variable Accumulation Period.....................................................................57
SECTION 24.        Optional Accumulation Period Commencement........................................................57
SECTION 25.        Series Yield Factor..............................................................................57
SECTION 26.        Ratification of Pooling and Servicing Agreement..................................................58
SECTION 27.        Counterparts.....................................................................................58
SECTION 28.        Governing Law....................................................................................58
SECTION 29.        Intention of Parties.............................................................................58
SECTION 30.        Amendment for Sale Accounting Purposes.......................................................    58
</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
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                          DISCOVER CARD MASTER TRUST I
                          SERIES 2001 - 5 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 - 5 CERTIFICATES.

                                SERIES TERM SHEET

<TABLE>
<S>                                                                 <C>
Date of Series Term Sheet                                           May 24, 2001.

Group                                                               One.

Series Initial Investor Interest                                    $1,052,632,000

Class Initial Investor Interest of each Class of                    Class A - $1,000,000,000.
Investor Certificates

                                                                    Class B - $52,632,000.

Class A Expected Final Payment Date                                 The Distribution Date in May 2004.

Class B Expected Final Payment Date                                 The Distribution Date in June 2004.

Type of Structure                                                   Bullet Maturity.

Certificate Rates                                                   Class A - 5.30% per annum, calculated on the basis of a 360-day
                                                                    year of twelve 30-day months (or, in the case of accrual of
                                                                    interest for the period from and including the Series Closing
                                                                    Date to but excluding the June 2001 Distribution Date,
                                                                    calculated on the basis of the number of days elapsed and a
                                                                    360-day year, assuming the month of May has 30 days).

                                                                    Class B - 5.65% per annum, calculated on the basis of a 360-day
                                                                    year of twelve 30-day months (or, in the case of accrual of
                                                                    interest for the period from and including the Series Closing
                                                                    Date to but excluding the June 2001 Distribution Date,
                                                                    calculated on the basis of the number of days elapsed and a
                                                                    360-day year,
</TABLE>

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<TABLE>
<S>                                                                 <C>
                                                                    assuming the month of May has 30 days).

Monthly Amortization Rate                                           Not applicable.

Prepayment Calculation Table                                        Not applicable.

Prepayment Determination Date                                       Not applicable.

Class Cap Rate                                                      Not applicable.

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                                            Not applicable.

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

Series Cut-Off Date                                                 May 1, 2001.

Series Closing Date                                                 May 24, 2001.

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

Distribution Dates                                                  June 15, 2001 and the 15th day of each calendar month thereafter
                                                                    (or, if such day is not a Business Day, the next succeeding
                                                                    Business Day). Interest Payment Dates

                                                                    The 15th day of each May and November (or, if such day is not a
                                                                    Business Day, the next succeeding Business Day), commencing in
                                                                    November 2001, and with respect to the Class B Certificates, on
                                                                    the Class B Expected Final Payment Date (or monthly under
                                                                    certain circumstances).

Statement Dates                                                     Each Distribution Date, commencing in June 2001.
</TABLE>

                                        2

<PAGE>   6

<TABLE>
<S>                                                                 <C>
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.

Accumulation Amount                                                 (a) Through the Class A Expected Final Payment Date, (i)
                                                                    $83,333,333.34 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, $52,632,000.00.

Principal Commencement Date                                         The first day of the Due Period related to the June 2003
                                                                    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                            $42,105,280.
</TABLE>

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<PAGE>   7

<TABLE>
<S>                                                                 <C>
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.

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)
                                                                    $10,526,320 and (ii) (x) if a Supplemental Credit Enhancement
                                                                    Event has not occurred, an amount equal to 4.0% of the Series
                                                                    Investor Interest as of the last day of the related Due Period,
                                                                    or (y) if a Supplemental Credit Enhancement Event has occurred,
                                                                    an amount equal to 5.0% of the Series Investor Interest as of
                                                                    the last day of the related Due Period or, (b) subsequent to the
                                                                    making of an Effective Alternative Credit Support Election, the
                                                                    greater of (i) $10,526,320 and (ii) an amount equal to 8.5% of
                                                                    the Series Investor Interest as of the last day of the related
                                                                    Due Period, 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.
</TABLE>

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<PAGE>   8
<TABLE>
<S>                                                                 <C>
Additional Credit Support Amount                                    The lesser of (x)(i) $47,368,440 prior to the occurrence of a
                                                                    Supplemental Credit Enhancement Event or (ii) $36,842,120
                                                                    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) $10,526,320 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).

Initial Subordinated Amount                                         $89,473,720.

Additional Subordinated Amount                                      $52,631,600 prior to the occurrence of a Supplemental Credit
                                                                    Enhancement Event and $47,368,440 following the occurrence of a
                                                                    Supplemental Credit Enhancement Event.

Supplemental Subordinated Amount                                    $5,263,160 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 Other Series in Group        Yes.
</TABLE>

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<PAGE>   9

<TABLE>
<S>                                                                 <C>
Series Termination Date                                             The first Business Day following the Distribution Date in
                                                                    November 2006.

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.

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 restrictions               Not applicable.

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

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.
</TABLE>

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<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

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<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 hereby (including the Series established

                                       13
<PAGE>   24

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 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

                                       28
<PAGE>   39

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

                                       29
<PAGE>   40

Certificate 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 and any funds received with respect to the maturity of a
Permitted Investment shall be available in sufficient time to allow for any
payments

                                       30
<PAGE>   41

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 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

                                       31

<PAGE>   42
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.

                  (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

                                       32
<PAGE>   43
mount 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

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.

                                       33
<PAGE>   44
                  (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."

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

                                       34
<PAGE>   45
                           (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

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

                                       35
<PAGE>   46
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

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

                                       36
<PAGE>   47
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 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

                                       37
<PAGE>   48
                           (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

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

                                       38
<PAGE>   49
                           (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,

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

                                       39
<PAGE>   50
                           (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

                           (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

                                       40
<PAGE>   51
                                    (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

                                    (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

                                       41
<PAGE>   52
                                            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.

                  (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

                                       42
<PAGE>   53
                           (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
                                    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

                                       43
<PAGE>   54
                           (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 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

                                       44
<PAGE>   55
                           (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 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.

                                       45
<PAGE>   56
                  (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 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.

                                       46
<PAGE>   57
                  (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 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

                                       47
<PAGE>   58
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.

                  (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.

                                       48
<PAGE>   59
                  (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;

                  (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;

                                       49
<PAGE>   60
                  (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).

         (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

                                       50
<PAGE>   61
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 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

                                       51
<PAGE>   62
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.

         (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.

                                       52
<PAGE>   63
         (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;

         (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

                                       53
<PAGE>   64
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 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

                                       54
<PAGE>   65
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 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

                                       55
<PAGE>   66
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 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

                                       57
<PAGE>   67

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.

         SECTION 30. Amendment for Sale Accounting Purposes. If any
Seller determines that (i) an amendment to this Agreement or the Pooling and
Servicing Agreement is necessary or desirable for such Seller to maintain or
establish sale accounting treatment under then-applicable financial accounting
standards, and (ii) such Seller cannot enter into such amendment pursuant to
Section 13.01 of the Pooling and Servicing Agreement without obtaining the
consent of a specified percentage of Investor Certificateholders, then the
Master Servicer, the Sellers, the Trustee and the Servicers may nonetheless
enter into such amendment without obtaining the consent of any Certificateholder
of any Investor Certificates of this Series so long as the Trustee shall have
been advised by the Rating Agencies that such amendment will not result in the
downgrading or withdrawal of the rating assigned to any Class of any Series then
outstanding.

         Any such amendment may include, without limitation, any changes
necessary to convert the Trust from a "one-tier" securitization structure to a
"two-tier" securitization structure. Notwithstanding the foregoing, any Investor
Certificateholder that acquires an Investor Certificate of this Series will be
deemed to have consented to any such amendment for all purposes, including for
purposes of calculating whether the requisite consent percentage, if any, under
Section 13.01 of the Pooling and Servicing Agreement has been received for any
amendment that requires such consent because of the lack of provisions
comparable to this Section 30 in the Series Supplements for other Series then
outstanding (except that Investor Certificates beneficially owned by any Seller
or any affiliate or agent of any Seller will not be included in any such
calculation).

<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 2001-5
               5.30% 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 or any successor provision
thereto) 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

                                     A-1-1
<PAGE>   69

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 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 May 24, 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 2001-5 5.30% 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 2001-5 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 2001-5 5.65%
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 $1,000,000,000. 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 May and November with respect to interest accrued during
the preceding Interest Accrual Period, commencing in November 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 May 2004 (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 November 2006 (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; and provided, further, that the permitted
activities of the Trust may be significantly changed only with the consent of
the Holders of Investor Certificates evidencing Fractional Undivided Interests
aggregating not less than 51% of the Aggregate Invested Amount. Any such
amendment and any such consent by the Class A Certificateholder, including the
deemed consent described in the following sentence, 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 Class A Certificateholder, by acceptance of this Class A
Certificate, will be deemed to have consented for all purposes to any amendment
that any Seller determines is necessary or desirable for such Seller to maintain
or establish sale accounting treatment under then-applicable financial
accounting standards.

         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 2001-5
               5.65% 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

                                     A-2-2
<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 or any successor provision thereto) 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 May 24, 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 2001-5 5.65% 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 2001-5 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 2001-5 5.30%
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 $52,632,000. 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 May and November with respect to interest accrued during
the preceding Interest Accrual Period, commencing in November 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 June 2004
(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 November 2006 (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; and, provided, further, that the permitted
activities of the Trust may be significantly changed only with the consent of
the Holders of Investor Certificates evidencing Fractional Undivided Interests
aggregating not less than 51% of the Aggregate Invested Amount. Any such
amendment and any such consent by the Class B Certificateholder, including the
deemed consent described in the following sentence, 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 Class B Certificateholder, by acceptance of this Class B
Certificate, will be deemed to have consented for all purposes to any amendment
that any Seller determines is necessary or desirable for such Seller to maintain
or establish sale accounting treatment under then-applicable financial
accounting standards.

         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.

                                     A-2-6
<PAGE>   81

         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.

         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 - 5 Monthly Statement

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

Pursuant to the Series Supplement dated as of May 24, 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 - 5 on this Distribution
   Date (per $1,000 of Class Initial Investor Interest)

<TABLE>
<CAPTION>
                                               Total                     Interest                 Principal
<S>                                         <C>                        <C>                        <C>
         Series 2001 - 5
            Class A                         $____________              $____________             $____________

            Class B                         $____________              $____________             $____________

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 - 5 Series Investor Interest                                       $____________

         (d)      Class A Investor Interest                                                      $____________

                  Class B Investor Interest                                                      $____________
</TABLE>

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

<TABLE>
<CAPTION>
                                                              Finance Charge    Principal        Yield Collections/
                                                               Collections      Collections      Additional Funds
<S>                                                           <C>               <C>              <C>
         (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 - 4 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]                                              ____________%

         (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]                                              ____________%
</TABLE>

<PAGE>   84

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

<TABLE>
<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 - 5   $________                 $________                          $________         $_________

5.       Information concerning amount of Controlled Liquidation Payments

                                 Amount paid on this      Deficit Amount on this   Total Payments through
                                  Distribution Date          Distribution Date     this Distribution Date
         Series 2001 -  5
         Class A                         N/A                        N/A                       N/A
         Class B                         N/A                        N/A                       N/A

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

                                                     Deposits into the SIFA
                                                     on this Distribution Date          SIFA Balance

         Series 2001 - 5                             $_________

7.       Investor Charged-Off Amount

                                                                            Cumulative Investor
                                                This Distribution Date       Charged-Off Amount

         (a)      Group One                         $_________                $_________

         (b)      Series 2001 - 5                   $_________                $_________

         (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 - 5                    $_________                 $_________

         (c)      Class A                            $_________                 $_________

                  Class B                            $_________                 $_________

</TABLE>

                                      B-2
<PAGE>   85

9.       Reimbursement of Investor Losses on this Distribution Date

<TABLE>
<CAPTION>
                                                     Total                      per $1,000 of original
                                                                                invested Principal
<S>                                                  <C>                        <C>
         (a)      Group  One                         $_________                 $_________

         (b)      Series 2001 - 5                    $_________                 $_________

         (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 - 5                    $_________                 $_________

         (c)      Class A                            $_________                 $_________

                  Class B                            $_________                 $_________

11.      Investor Monthly Servicing Fee payable on this Distribution Date

         (a)      Group One                          $_________

         (b)      Series 2001 - 5                    $_________

         (c)      Class A                            $_________

                  Class B                            $_________

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

                                                                                as a percentage of
                                                     Total                      Class A Invested Amount

         Series 2001 - 5, 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                $__________

</TABLE>

                                      B-3
<PAGE>   86

14.      Delinquency Summary

<TABLE>
<S><C>
         Master Trust Receivables Outstanding at the end of [Month][Year]                        $_________
</TABLE>

<TABLE>
<CAPTION>
                                                     Delinquent Amount          Percentage of ending
         Payment Status                              ending balance             Receivables outstanding

<S>                                                  <C>                        <C>
         30 - 59 days                                $__________________        __________%

         60 - 179 days                               $__________________        __________%

15.      Excess Spread Percentages on this Distribution Date1

         (a)      Group One(2)                       __________%

         (b)      Series 2001 - 5(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)                       __________%

</TABLE>

                                             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(c)), 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(b)), (iii) the Investor Charged-Off Amount (see Item 8(b)), 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 - 5

                                   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 May
24, 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 - 5
Certificates for the Distribution Date occurring on _______________:

<TABLE>
<S><C>
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 ..................................................................................... $_____
</TABLE>

                                      C-1
<PAGE>   88
<TABLE>
<S><C>
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.
</TABLE>

                                      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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