Document:

Class B(2008-3) Terms Document

 Exhibit 4.1 
  
  
 DISCOVER CARD EXECUTION NOTE TRUST 
 Issuer 
 and 
 U.S. BANK NATIONAL ASSOCIATION 
 Indenture
Trustee 
 CLASS B(2008-3) TERMS DOCUMENT 
 Dated as of August 28, 2008 
 to 
 INDENTURE SUPPLEMENT 
 Dated as of July 26, 2007 
 for the DiscoverSeries Notes 
 to 

INDENTURE 
 Dated as of July 26, 2007

  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I
	
	Definitions and Other Provisions of General Application
			
	Section 1.01.	  	Definitions	  	1
	Section 1.02.	  	Representations and Warranties of Issuer	  	7
	Section 1.03.	  	Representations and Warranties of Indenture Trustee	  	7
	Section 1.04.	  	Limitations on Liability	  	8
	Section 1.05.	  	Governing Law	  	8
	Section 1.06.	  	Counterparts	  	8
	Section 1.07.	  	Ratification of Indenture and Indenture Supplement	  	8
	
	ARTICLE II
	
	The Class B(2008-3) Notes
			
	Section 2.01.	  	Creation and Designation	  	8
	Section 2.02.	  	Adjustments to Required Subordinated Percentages and Amount	  	9
	Section 2.03.	  	Interest Payment	  	9
	Section 2.04.	  	Notification of LIBOR	  	10
	Section 2.05.	  	Payments of Interest and Principal	  	10
	Section 2.06.	  	Form of Delivery of Class B(2008-3) Notes; Denominations	  	10
	Section 2.07.	  	Delivery and Payment for the Class B(2008-3) Notes	  	11
	Section 2.08.	  	Targeted Deposits to the Accumulation Reserve Account	  	11
	Section 2.09.	  	Additional Issuances of Notes	  	11

 Exhibit 
  

			
	Exhibit A	  	Form of Class B Note

 THIS CLASS B(2008-3) TERMS DOCUMENT (this “Terms Document”), by and between DISCOVER
CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United
States of America, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of August 28, 2008. 
 Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class B Notes of the DiscoverSeries and shall specify the principal terms thereof. 
 ARTICLE I 
 Definitions and Other Provisions of General Application 
 Section 1.01. Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise
requires: 
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the
singular; 
 (2) all other terms used herein which are defined in the Indenture Supplement or the Indenture, either directly or by reference
therein, have the meanings assigned to them therein; 
 (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means
such accounting principles as are generally accepted in the United States of America at the date of such computation; 
 (4) all references
in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document; The words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 
 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture Supplement or the Indenture, the terms and provisions of this
Terms Document shall be controlling, but solely with respect to the Class B(2008-3) Notes; 
 (6) each capitalized term defined herein shall
relate only to the Class B(2008-3) Notes and no other Tranche of Notes issued by the Issuer; 
 (7) “including” and words of
similar import will be deemed to be followed by “without limitation”; and 
 (8) for purposes of determining any amount or making
any calculation hereunder, such amount or calculation, (x) if specified to be as of the first day of any Due Period, shall (a)

 
include any Notes issued during such Due Period as if such Notes had been outstanding on the first day of such Due Period and (b) give effect to any
payments, deposits or other allocations made on the Distribution Date related to the prior Due Period, and (y) if specified to be as of the close of business on the last day of any Due Period shall give effect to any payments, deposits or other
allocations made on the related Distribution Date. 
 “Accumulation Amount” means $5,000,000; provided,
however, if the commencement of the Accumulation Period is delayed in accordance with Section 4.02 of the Indenture Supplement, the Accumulation Amount shall be determined in accordance with the definition of “Accumulation
Amount” in the Indenture Supplement. 
 “Accumulation Commencement Date” means August 1, 2009 (or, if such day is
not a Business Day, the next succeeding Business Day), or such later date as the Calculation Agent on behalf of the Issuer determines in accordance with Section 4.02 of the Indenture Supplement. 
 “Accumulation Period” has the meaning set forth in the Indenture Supplement. 
 “Accumulation Period Length” means 12 months; provided, however, if the commencement of the Accumulation Period is delayed in accordance
with Section 4.02 of the Indenture Supplement, the Accumulation Period Length shall be determined in accordance with the definition of “Accumulation Period Length” in the Indenture Supplement. 
 “Accumulation Reserve Funding Period” shall not apply if the Calculation Agent on behalf of the Issuer notifies the Indenture Trustee
that it expects the Accumulation Period Length to be adjusted to one (1) month, and otherwise shall mean a period commencing on the first Distribution Date on which a condition in the right column of the following table was in effect on the
immediately preceding Distribution Date, if the Distribution Date is a Distribution Date described in the corresponding left column of the following table, and ending on the Distribution Date immediately preceding the earlier to occur of:

 (x) the Expected Maturity Date for the Class B(2008-3) Notes and 
 (y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class B(2008-3) Notes is paid in full. 
  

			
	 Distribution Date:
	  	 Condition:

	(a) The Distribution Date occurring three (3) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02 of
the Indenture Supplement) and any following Distribution Date	  	No condition.
		
	(b) The Distribution Date occurring four (4) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02 of
the Indenture Supplement) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 4%.

  

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	(c) The Distribution Date occurring six (6) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02 of the
Indenture Supplement) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 3%.
		
	(D) The Distribution Date occurring twelve (12) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02
of the Indenture Supplement) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 2%.

 “Class B(2008-3) Adverse Event” means the occurrence of any of the following:
(a) an Early Redemption Event with respect to the Class B(2008-3) Notes or (b) an Event of Default and acceleration of the Class B(2008-3) Notes; provided, however, that if the only such event to have occurred is an Excess
Spread Early Redemption Event for which an Excess Spread Early Redemption Cure has occurred, a Class B(2008-3) Adverse Event shall not be treated as continuing from and after the date of such cure. 
 “Class B(2008-3) Note” means any Note, in the form set forth in Exhibit A hereto, designated therein as a Class B(2008-3) Note and duly
executed and authenticated in accordance with the Indenture. 
 “Class B(2008-3) Noteholder” means a Person in whose name a
Class B(2008-3) Note is registered in the Note Register. 
 “Class B(2008-3) Termination Date” means the earliest to occur
of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class B(2008-3) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant
to Article VI thereof. 
 “Encumbered Amount” means, for the Class B(2008-3) Notes, an amount equal to 
 (a) the Nominal Liquidation Amount of the Class B(2008-3) Notes, divided by 
 (b) the Nominal Liquidation Amount of all Tranches of Class B Notes in the DiscoverSeries, multiplied by 
 (c) the aggregate Required Subordinated Amount of Class B Notes for all Tranches of Class A Notes in the DiscoverSeries with a Required Subordinated
Amount of Class B Notes greater than zero. 
  

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 “Encumbered Required Subordinated Amount of Class C Notes” means, for the Class
B(2008-3) Notes, an amount equal to the product of 
 (a) the Encumbered Amount for the Class B(2008-3) Notes, and 
 (b) the Required Subordinated Percentage of Class C Notes (Encumbered) for the Class B(2008-3) Notes. 
 “Excess Spread Percentage” for any Distribution Date means a fraction, the numerator of which is the Excess Spread Amount for such
Distribution Date multiplied by 12 and the denominator of which is the sum of the Nominal Liquidation Amounts of all Tranches of DiscoverSeries Notes as of the first day of the related Due Period. 
 “Expected Maturity Date” means August 16, 2010. 
 “Indenture” means the Indenture dated as of July 26, 2007 between the Issuer and Indenture Trustee, as the same may be amended, supplemented, restated, amended and restated, replaced or otherwise
modified from time to time. 
 “Indenture Supplement” means the Indenture Supplement dated as of July 26, 2007 for the
DiscoverSeries Notes, by and between the Issuer and the Indenture Trustee, as the same may be amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 
 “Initial Dollar Principal Amount” means $60,000,000, or such higher amount as is specified in any Notice of Additional Issuance under
Section 2.09. 
 “Interest Accrual Period” means, with respect to any Interest Payment Date, the period from and
including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class B(2008-3) Note, from and including the applicable Issuance Date) to but excluding such Interest Payment Date. 
 “Interest Payment Date” means the fifteenth day of each month commencing in September 2008, or if such fifteenth day is not a Business
Day, the next succeeding Business Day. 
 “Issuance Date” means August 28, 2008 with respect to all Class B(2008-3)
Notes issued on the date hereof and, with respect to any additional Class B(2008-3) Notes issued pursuant to Section 2.09, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder. 
 “Legal Maturity Date” means February 15, 2013. 
 “LIBOR” means, with respect to any LIBOR Determination Date, the rate for deposits in United States dollars with a duration comparable to the relevant Interest Accrual Period which appears on Reuters
Screen LIBOR01 as of 11:00 a.m., London time, on such day. If such rate does not appear on Reuters Screen LIBOR01, the rate will be determined by the Indenture Trustee on the basis of the rates at which deposits in United States dollars are offered
by major 

  

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banks in the London interbank market, selected by the Indenture 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 Indenture 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. If LIBOR
with respect to a LIBOR Determination Date is not determined pursuant to the foregoing, LIBOR with respect to such LIBOR Determination Date will be LIBOR with respect to the immediately prior LIBOR Determination Date. 
 “LIBOR Determination Date” means the second LIBOR Business Day immediately preceding the commencement of an Interest Accrual Period.

 “LIBOR Business Day,” if applicable, shall mean a day other than a Saturday or a Sunday on which banking institutions in
both the City of London, England and in New York, New York are not required or authorized by law to be closed. 
 “Note Interest
Rate” means LIBOR + 4.50% per annum, calculated on the basis of the actual number of days elapsed and a 360-day year. 
 “Notice of Additional Issuance” has the meaning set forth in Section 2.09. 
 “Required Daily Deposit
Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the Class B Tranche Interest Allocation for the related Distribution Date; provided, however, that for purposes of determining the Required
Daily Deposit Target Finance Charge Amount on any day on which the Class B Tranche Interest Allocation cannot be determined because the LIBOR Determination Date for the applicable Interest Accrual Period has not yet occurred, the Required Daily
Deposit Target Finance Charge Amount shall be the Class B Tranche Interest Allocation determined based on a pro forma calculation made on the assumption that LIBOR will be LIBOR for the applicable period determined on the first day of such calendar
month, multiplied by 1.25. 
 “Required Daily Deposit Target Principal Amount” means, for any day in a Due Period,
(i) if such Due Period is in the Accumulation Period for the Class B(2008-3) Notes, the Accumulation Amount, (ii) if such day is on or after the occurrence and during the continuance of a Class B(2008-3) Adverse Event, the Nominal
Liquidation Amount of the Class B(2008-3) Notes, and (iii) in all other circumstances, zero. 
 “Required Subordinated Amount of
Class C Notes” means, for the Class B(2008-3) Notes for any date of determination, an amount equal to the sum of 
 (a) the Unencumbered Required Subordinated Amount of Class C Notes for such Class B(2008-3) Notes and 
  

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 (b) the Encumbered Required Subordinated Amount of Class C Notes for such Class B(2008-3)
Notes; 
 provided, however, that for any date of determination on or after the occurrence and during the continuation of a Class B(2008-3)
Adverse Event, the Required Subordinated Amount of Class C Notes for the Class B(2008-3) Notes will be the greater of 
 (x)
the amount determined above for such date of determination and 
 (y) the amount determined above for the date immediately
prior to the date on which such Class B(2008-3) Adverse Event shall have occurred. 
 “Required Subordinated Amount of Class D
Notes” means, for the Class B(2008-3) Notes for any date of determination, zero, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class C Notes (Encumbered)” means, for the Class B(2008-3) Notes, 127.272727%, subject to adjustment in accordance with Section 2.02. 
 “Required Subordinated Percentage of Class C Notes (Unencumbered)” means, for the Class B(2008-3) Notes, 7.526882%, subject to
adjustment in accordance with Section 2.02. 
 “Reuters Screen LIBOR01” means the display page currently so designated
on the Reuters Screen (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices). 
 “Specified Rating” means, for the Class B(2008-3) Notes, A with respect to Standard & Poors, A2 with respect to Moody’s and A with respect to Fitch. 
 “Stated Principal Amount” means $60,000,000 or such higher amount as is specified in any Notice of Additional Issuance under
Section 2.09. 
 “Targeted Accumulation Reserve Subaccount Deposit” means, with respect to any Distribution Date during
the Accumulation Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class B(2008-3) Notes as of the close of business on the last day of the related Due Period or (ii) any other amount
designated by the Calculation Agent on behalf of the Issuer; provided, however, that if such designation is of a lesser amount, the applicable Note Rating Agencies shall have provided prior written confirmation that a Ratings Effect will not occur
with respect to such change. 
 “Unencumbered Amount” means, for the Class B(2008-3) Notes, an amount equal to the Nominal
Liquidation Amount of the Class B(2008-3) Notes minus the Encumbered Amount for the Class B(2008-3) Notes. 
 “Unencumbered
Required Subordinated Amount of Class C Notes” means, for the Class B(2008-3) Notes, an amount equal to the product of 
 (a) the Unencumbered Amount for the Class B(2008-3) Notes and 
  

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 (b) the Required Subordinated Percentage of Class C Notes (Unencumbered) for the Class
B(2008-3) Notes. 
 Section 1.02. Representations and Warranties of Issuer. The Issuer represents and warrants that: 

(a) the Issuer has been duly formed and is validly existing as a statutory trust in good standing under the laws of the State of Delaware, and has full
power and authority to execute and deliver this Terms Document and to perform the terms and provisions hereof; 
 (b) the execution, delivery
and performance of this Terms Document by the Issuer have been duly authorized by all necessary corporate and statutory trust proceedings of any Beneficiary and the Owner Trustee, do not require any approval or consent of any governmental agency or
authority, and do not and will not conflict with any material provision of the Certificate of Trust or the Trust Agreement of the Issuer; 
 (c) this Terms Document is the valid, binding and enforceable obligations of the Issuer, 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; 
 (d) to the best of the Issuer’s knowledge, this Terms Document will not conflict
with any law or governmental regulation or court decree applicable to it; 
 (e) the Issuer is not required to be registered under the
Investment Company Act; 
 (f) all information heretofore furnished by the Issuer in writing to the Indenture Trustee for purposes of or in
connection with this Terms Document or any transaction contemplated hereby is, and all such information hereafter furnished by the Issuer in writing to the Indenture Trustee will be, true and accurate in every material respect or based on reasonable
estimates on the date as of which such information is stated or certified; and 
 (g) to the best knowledge of the Issuer, there are no
proceedings or investigations pending against the Issuer before any court, regulatory body, administrative agency, or other tribunal or governmental instrumentality having jurisdiction over the Issuer (A) asserting the invalidity of this Terms
Document, (B) seeking to prevent the consummation of any of the transactions contemplated by this Terms Document or (C) seeking any determination or ruling which in the Issuer’s judgment would materially and adversely affect the
performance by the Issuer of its obligations under this Terms Document or the validity or enforceability of this Terms Document. 
 Section
1.03. Representations and Warranties of Indenture Trustee. The Indenture Trustee represents and warrants and any successor trustee shall represent and warrant that: 
 (a) The Indenture Trustee is organized, existing and in good standing under the laws of the United States of America; 
  

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 (b) The Indenture Trustee has full power, authority and right to execute, deliver and perform this
Indenture, and has taken all necessary action to authorize the execution, delivery and performance by it of this Terms Document; and 
 (c)
This Terms Document has been duly executed and delivered by the Indenture Trustee. 
 Section 1.04. Limitations on Liability.

 (a) It is expressly understood and agreed by the parties hereto that (i) this Terms Document is executed and delivered by the Owner
Trustee not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements herein made on
the part of the Issuer is made and intended not as a personal representation, undertaking or agreement by the Owner Trustee but is made and intended for the purpose of binding only the Issuer, (iii) nothing herein contained will be construed as
creating any liability on the Owner Trustee individually or personally, to perform any covenant of the Issuer either expressed or implied herein, all such liability, if any, being expressly waived by the parties to this Terms Document and by any
Person claiming by, through or under them and (iv) under no circumstances will the Owner Trustee be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Issuer under this Terms Document or any related documents. 
 (b) None of the
Indenture Trustee, the Owner Trustee, the Calculation Agent, any Beneficiary, the Depositor, any Master Servicer or any Servicer or any of their respective officers, directors, employees, incorporators or agents will have any liability with respect
to this Terms Document, and recourse may be had solely to the Collateral pledged to secure these Class B(2008-3) Notes under the Indenture, the Indenture Supplement and this Terms Document. 
 Section 1.05. Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER STATE. 
 Section 1.06. Counterparts. This Terms Document may be executed in any number of counterparts, each of which when so executed will be deemed
to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.07. Ratification
of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as supplemented by the Indenture Supplement and this
Terms Document shall be read, taken and construed as one and the same instrument. 
  

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 ARTICLE II 
 The Class B(2008-3) Notes 
 Section 2.01. Creation and Designation. There is hereby created a
Tranche of Class B Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the “DiscoverSeries Class B(2008-3) Notes.” 
 Section 2.02. Adjustments to Required Subordinated Percentages and Amount. 
 (a) On any date, the
Issuer may, at the direction of the Beneficiary, change the Required Subordinated Percentage of Class C Notes (Encumbered) or the Required Subordinated Percentage of Class C Notes (Unencumbered), in each case for the Class B(2008-3) Notes, without
the consent of any Noteholders; provided that the Issuer has received written confirmation from each applicable Note Rating Agency that the change in such percentage will not result in a Ratings Effect for any Tranche of Outstanding
DiscoverSeries Notes. On any date, the Issuer may, at the direction of the Beneficiary, change the Required Subordinated Amount of Class D Notes for the Class B(2008-3) Notes (though not below zero) and may add such definitions and other terms and
make such additional amendments to this Terms Document as shall be necessary to determine such Required Subordinated Amount of Class D Notes without the consent of any Noteholders; provided that the Issuer has received written confirmation
from each applicable Note Rating Agency that the change in such percentage and such other amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes; provided, however, that at any time the Class
D Notes are or will be held by Discover Bank or any of its affiliates, the Required Subordinated Amount of Class D Notes for these Class B(2008-3) Notes may not be increased above zero. 
 (b) On any date, the Issuer may, at the direction of the Beneficiary, replace all or a portion of the Required Subordinated Amount of Class C Notes or
the Required Subordinated Amount of Class D Notes, in each case for the Class B(2008-3) Notes with a different form of credit enhancement (including, without limitation, a cash collateral account, a letter of credit, a reserve account, a surety
bond, an insurance policy or a collateral interest, or any combination thereof) and may add such definitions and other terms and make such additional amendments to this Terms Document as shall be necessary for such replacement without the consent of
any Noteholders, provided that the Issuer has received written confirmation from each applicable Note Rating Agency that such replacement and such other amendments will not result in a Ratings Effect for any Tranche of Outstanding
DiscoverSeries Notes. 
 Section 2.03. Interest Payment. For each Interest Payment Date, the amount of interest due with respect
to the Class B(2008-3) Notes shall be an amount equal to 
  

	 	(i)	(A) a fraction, the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 360, times

 (B) the Note Interest Rate in effect with respect to such related Interest Accrual Period, times 
  

	 	(ii)	the Outstanding Dollar Principal Amount of the Class B(2008-3) Notes determined as of the first date of such related Interest Accrual Period, plus 

 

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 any Class B Tranche Interest Allocation Shortfall for such Class B(2008-3) Notes for the immediately preceding
Distribution Date, together with interest thereon at the Note Interest Rate in effect with respect to such related Interest Accrual Period, calculated on the basis of the actual number of days in the related Interest Accrual Period and a 360-day
year. 
 Section 2.04. Notification of LIBOR. On each LIBOR Determination Date, the Indenture Trustee shall send to the Issuer,
the Beneficiary, each applicable Master Servicer and any stock exchange on which the Class B(2008-3) Notes are then listed (if the rules of such exchange so require), by facsimile transmission or electronic transmission, notification of LIBOR for
the following Interest Accrual Period. 
 Section 2.05. Payments of Interest and Principal. 
 (a) The Issuer will cause interest to be paid on each Interest Payment Date and principal to be paid on the Expected Maturity Date; provided,
however, that it shall not be an Event of Default if principal is not paid in full on such Expected Maturity Date unless funds for such payment have been allocated in accordance with Section 3.01 of the Indenture Supplement; and
provided, further, that if a Class B(2008-3) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment Date for the Class B(2008-3) Notes in accordance with
Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the Class B(2008-3) Notes shall be made as set forth in Section 1101 of the Indenture. 
 (b) The right of the Class B(2008-3) Noteholders to receive payments from the Issuer will terminate on the Class B(2008-3) Termination Date. 

(c) All payments of principal, interest or other amounts to the Class B(2008-3) Noteholders will be made pro rata based on the Stated Principal
Amount of their Class B(2008-3) Notes. 
 Section 2.06. Form of Delivery of Class B(2008-3) Notes; Denominations. 
 (a) The Class B(2008-3) Notes shall be delivered in the form of a definitive Registered Note as provided in Section 201 of the Indenture. The form of
the Class B(2008-3) Notes is attached hereto as Exhibit A. 
 (b) The Class B(2008-3) Notes shall, until such time as the laws of any
jurisdiction in which they are offered or sold no longer restrict the transfer or sale thereof, bear a legend in substantially the following form: 
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 

  

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OF THE SECURITIES ACT PROVIDED BY RULE 144A. THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF DISCOVER CARD EXECUTION NOTE TRUST AND DISCOVER BANK THAT
(A) THIS NOTE MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT OR, IN THE CASE OF THE INITIAL HOLDER HEREOF ONLY, ANOTHER APPLICABLE EXEMPTION UNDER THE SECURITIES ACT, (2) TO DISCOVER CARD EXECUTION NOTE TRUST, DISCOVER BANK OR THEIR AFFILIATES OR (3) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT, IF APPLICABLE, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. 
 No Class B(2008-3) Notes shall be transferred
except in accordance with the transfer restrictions described in the legend set forth above. 
 (c) The Class B(2008-3) Notes will be issued
in minimum denominations of $100,000 and integral multiples of $1,000 in excess of that amount. 
 Section 2.07. Delivery and Payment
for the Class B(2008-3) Notes. The Issuer shall execute and deliver the Class B(2008-3) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class B(2008-3) Notes when authenticated, each in accordance
with Sections 203 and 303 of the Indenture. 
 Section 2.08. Targeted Deposits to the Accumulation Reserve Account. The deposit
targeted to be made to the Accumulation Reserve Subaccount for the Class B(2008-3) Notes for any Due Period during the Accumulation Reserve Funding Period will be an amount equal to the Targeted Accumulation Reserve Subaccount Deposit minus
any amount on deposit in the Accumulation Reserve Subaccount for the Class B(2008-3) Notes. 
 Section 2.09. Additional Issuances
of Notes. Subject to clauses (ii), (iii), (iv) and (v) of Sections 2.02 and Section 2.03 of the Indenture Supplement, the Issuer may issue additional Class B(2008-3) Notes, so long as the following conditions precedent are
satisfied: 
 (a) the Issuer shall have given the Indenture Trustee written notice of such issuance of additional Class B(2008-3) Notes (the
“Notice of Additional Issuance”) at least one (1) Business Day in advance of the Issuance Date thereof, which notice shall include: 
  

	 	(i)	the Issuance Date of such additional Class B(2008-3) Notes; 

  

	 	(ii)	the amount of such additional Class B(2008-3) Notes being offered and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class B(2008-3) Notes;

  

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	 	(iii)	the date from which interest on such additional Class B(2008-3) Notes will accrue (which may be a date prior to the date of issuance thereof); 

  

	 	(iv)	the first Interest Payment Date on which interest will be paid on such additional Class B(2008-3) Notes; and 

  

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class B(2008-3) Notes to clarify the rights of Holders of such additional Class B(2008-3) Notes or
the effect of such issuance of additional Class B(2008-3) Notes on any calculations to be made with respect to the Class B(2008-3) Notes, Class B, or the Issuer. 

 All such terms shall be incorporated into and form a part of this Terms Document on and after the effective date of such Class B(2008-3) Notes; and 
 (b) no Class B(2008-3) Adverse Event has occurred and is continuing. 
 The Issuer shall not have to satisfy the conditions set forth in Section 310 of the Indenture in connection with an issuance of additional Class B(2008-3) Notes so long as such conditions were satisfied or waived
in connection with the initial issuance of Class B(2008-3) Notes. 
 [Remainder of page intentionally blank; signature page follows] 

  

 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the day and year
first above written. 
  

			
	DISCOVER CARD EXECUTION NOTE TRUST,
	as Issuer
		
	By:	 	 Wilmington Trust Company,
 not in its individual
capacity but solely
 as Owner Trustee

		
	By:	 	 /s/ Jennifer A. Luce

	Name:	 	Jennifer A. Luce
	Title:	 	Sr. Financial Services Officer
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as Indenture
Trustee

		
	By:	 	 /s/ Patricia M. Child

	Name:	 	Patricia M. Child
	Title:	 	Vice President

  

 [Signature Page to Class B(2008-3) Terms Document] 

 Exhibit A 
 Form of Class B Note 
 See attachedClass C(2008-3) Terms Document

 Exhibit 4.2 
  
  
 DISCOVER CARD EXECUTION NOTE TRUST 
 Issuer 
 and 
 U.S. BANK NATIONAL ASSOCIATION 
 Indenture
Trustee 
 CLASS C(2008-3) TERMS DOCUMENT 
 Dated as of August 28, 2008 
 to 
 INDENTURE SUPPLEMENT 
 Dated as of July 26, 2007 
 for the DiscoverSeries Notes 
 to 

INDENTURE 
 Dated as of July 26, 2007

  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I
	
	Definitions and Other Provisions of General Application
			
	 Section 1.01.
	  	 Definitions
	  	1
	 Section 1.02.
	  	 Representations and Warranties of Issuer
	  	6
	 Section 1.03.
	  	 Representations and Warranties of Indenture Trustee
	  	7
	 Section 1.04.
	  	 Limitations on Liability
	  	7
	 Section 1.05.
	  	 Governing Law
	  	8
	 Section 1.06.
	  	 Counterparts
	  	8
	 Section 1.07.
	  	 Ratification of Indenture and Indenture Supplement
	  	8
	
	ARTICLE II
	
	The Class C(2008-3) Notes
			
	 Section 2.01.
	  	 Creation and Designation
	  	8
	 Section 2.02.
	  	 Adjustments to Required Subordinated Amount
	  	8
	 Section 2.03.
	  	 Interest Payment
	  	9
	 Section 2.04.
	  	 Notification of LIBOR
	  	9
	 Section 2.05.
	  	 Payments of Interest and Principal
	  	9
	 Section 2.06.
	  	 Form of Delivery of Class C(2008-3) Notes; Denominations
	  	10
	 Section 2.07.
	  	 Delivery and Payment for the Class C(2008-3) Notes
	  	11
	 Section 2.08.
	  	 Targeted Deposits to the Accumulation Reserve Account
	  	11
	 Section 2.09.
	  	 Additional Issuances of Notes
	  	11

  

					
	Exhibit
			
		 	Exhibit A	  	Form of Class C Note

 THIS CLASS C(2008-3) TERMS DOCUMENT (this “Terms Document”), by and between DISCOVER
CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United
States of America, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of August 28, 2008. 
 Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class C Notes of the DiscoverSeries and shall specify the principal terms thereof. 
 ARTICLE I 
 Definitions and Other Provisions of General Application 
 Section 1.01. Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise
requires: 
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the
singular; 
 (2) all other terms used herein which are defined in the Indenture Supplement or the Indenture, either directly or by reference
therein, have the meanings assigned to them therein; 
 (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means
such accounting principles as are generally accepted in the United States of America at the date of such computation; 
 (4) all references
in this Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document; The words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 
 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture Supplement or the Indenture, the terms and provisions of this
Terms Document shall be controlling, but solely with respect to the Class C(2008-3) Notes; 
 (6) each capitalized term defined herein shall
relate only to the Class C(2008-3) Notes and no other Tranche of Notes issued by the Issuer; 
 (7) “including” and words of
similar import will be deemed to be followed by “without limitation”; and 
 (8) for purposes of determining any amount or making
any calculation hereunder, such amount or calculation, (x) if specified to be as of the first day of any Due Period, shall (a)

 
include any Notes issued during such Due Period as if such Notes had been outstanding on the first day of such Due Period and (b) give effect to any
payments, deposits or other allocations made on the Distribution Date related to the prior Due Period, and (y) if specified to be as of the close of business on the last day of any Due Period shall give effect to any payments, deposits or other
allocations made on the related Distribution Date. 
 “Accumulation Amount” means $8,750,000; provided,
however, if the commencement of the Accumulation Period is delayed in accordance with Section 4.02 of the Indenture Supplement, the Accumulation Amount shall be determined in accordance with the definition of “Accumulation
Amount” in the Indenture Supplement. 
 “Accumulation Commencement Date” means August 1, 2009 (or, if such day is
not a Business Day, the next succeeding Business Day), or such later date as the Calculation Agent on behalf of the Issuer determines in accordance with Section 4.02 of the Indenture Supplement. 
 “Accumulation Period” has the meaning set forth in the Indenture Supplement. 
 “Accumulation Period Length” means 12 months; provided, however, if the commencement of the Accumulation Period is delayed
in accordance with Section 4.02 of the Indenture Supplement, the Accumulation Period Length shall be determined in accordance with the definition of “Accumulation Period Length” in the Indenture Supplement. 
 “Accumulation Reserve Funding Period” shall not apply if the Calculation Agent on behalf of the Issuer notifies the Indenture Trustee
that it expects the Accumulation Period Length to be adjusted to one (1) month, and otherwise shall mean a period commencing on the first Distribution Date on which a condition in the right column of the following table was in effect on the
immediately preceding Distribution Date, if the Distribution Date is a Distribution Date described in the corresponding left column of the following table, and ending on the Distribution Date immediately preceding the earlier to occur of:

 (x) the Expected Maturity Date for the Class C(2008-3) Notes and 
 (y) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class C(2008-3) Notes is paid in full. 
  

			
	 Distribution Date:
	  	 Condition:

	(a) The Distribution Date occurring three (3) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02 of
the Indenture Supplement) and any following Distribution Date	  	No condition.
		
	(b) The Distribution Date occurring four (4) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02 of
the Indenture Supplement) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 4%.

  

 2 

			
		
	(c) The Distribution Date occurring six (6) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02 of the
Indenture Supplement) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 3%.
		
	(D) The Distribution Date occurring twelve (12) calendar months prior to the first scheduled Distribution Date of the Accumulation Period (as adjusted in accordance with Section 4.02
of the Indenture Supplement) and any following Distribution Date	  	The three-month rolling average Excess Spread Percentage is less than 2%.

 “Class C(2008-3) Adverse Event” means the occurrence of any of the following:
(a) an Early Redemption Event with respect to the Class C(2008-3) Notes or (b) an Event of Default and acceleration of the Class C(2008-3) Notes; provided, however, that if the only such event to have occurred is an Excess
Spread Early Redemption Event for which an Excess Spread Early Redemption Cure has occurred, a Class C(2008-3) Adverse Event shall not be treated as continuing from and after the date of such cure. 
 “Class C(2008-3) Note” means any Note, in the form set forth in Exhibit A hereto, designated therein as a Class C(2008-3) Note and duly
executed and authenticated in accordance with the Indenture. 
 “Class C(2008-3) Noteholder” means a Person in whose name a
Class C(2008-3) Note is registered in the Note Register. 
 “Class C(2008-3) Termination Date” means the earliest to occur
of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class C(2008-3) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant
to Article VI thereof. 
 “Class C Reserve Account Percentage” means, for any Distribution Date on which a condition in the
left column of the following table was in effect on the immediately preceding Distribution Date, the percentage in the corresponding right column of the following table (or if more than one conditions were in effect on the immediately preceding
Distribution Date, the largest percentage). 
  

 3 

			
	 Condition:
  
 The three-month rolling average Excess Spread Percentage is:
	  	Class C Reserve Account Percentage:
		
	(a) 4.50% or greater	  	0%
		
	(b) 4.00% to 4.49%	  	1.25%
		
	(c) 3.50% to 3.99%	  	2.00%
		
	(d) 3.00% to 3.49%	  	2.75%
		
	(e) 2.50% to 2.99%	  	3.50%
		
	(f) 2.00% to 2.49%	  	4.50%
		
	(g) less than 2.00%, or an Early Redemption Event or Event of Default for the Class C(2008-3) Notes has occurred and is continuing.	  	6.00%

 “Excess Spread Percentage” for any Distribution Date means a fraction, the
numerator of which is the Excess Spread Amount for such Distribution Date multiplied by 12 and the denominator of which is the sum of the Nominal Liquidation Amounts of all Tranches of DiscoverSeries Notes as of the first day of the related
Due Period. 
 “Expected Maturity Date” means August 16, 2010. 
 “Indenture” means the Indenture dated as of July 26, 2007 between the Issuer and Indenture Trustee, as the same may be amended,
supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 
 “Indenture Supplement”
means the Indenture Supplement dated as of July 26, 2007 for the DiscoverSeries Notes, by and between the Issuer and the Indenture Trustee, as the same may be amended, supplemented, restated, amended and restated, replaced or otherwise modified
from time to time. 
 “Initial Dollar Principal Amount” means $105,000,000, or such higher amount as is specified in any
Notice of Additional Issuance under Section 2.09. 
 “Interest Accrual Period” means, with respect to any Interest
Payment Date, the period from and including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class C(2008-3) Note, from and including the applicable Issuance Date) to but excluding such Interest Payment
Date. 
  

 4 

 “Interest Payment Date” means the fifteenth day of each month commencing in September
2008, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 
 “Issuance Date” means
August 28, 2008 with respect to all Class C(2008-3) Notes issued on the date hereof and, with respect to any additional Class C(2008-3) Notes issued pursuant to Section 2.09, any Issuance Date specified in the Notice of Additional Issuance
delivered thereunder. 
 “Legal Maturity Date” means February 15, 2013. 
 “LIBOR” means, with respect to any LIBOR Determination Date, the rate for deposits in United States dollars with a duration comparable
to the relevant Interest Accrual Period which appears on Reuters Screen LIBOR01 as of 11:00 a.m., London time, on such day. If such rate does not appear on Reuters Screen LIBOR01, the rate will be determined by the Indenture 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 Indenture 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 Indenture 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. If LIBOR with respect to a
LIBOR Determination Date is not determined pursuant to the foregoing, LIBOR with respect to such LIBOR Determination Date will be LIBOR with respect to the immediately prior LIBOR Determination Date. 
 “LIBOR Determination Date” means the second LIBOR Business Day immediately preceding the commencement of an Interest Accrual Period.

 “LIBOR Business Day,” if applicable, shall mean a day other than a Saturday or a Sunday on which banking institutions in
both the City of London, England and in New York, New York are not required or authorized by law to be closed. 
 “Note Interest
Rate” means LIBOR + 6.45% per annum, calculated on the basis of the actual number of days elapsed and a 360-day year. 
 “Notice of Additional Issuance” has the meaning set forth in Section 2.09. 
 “Required Daily Deposit
Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the Class C Tranche Interest Allocation for the related Distribution Date; provided, however, that for purposes of determining the Required
Daily Deposit Target Finance Charge Amount on any day on which the Class C Tranche Interest Allocation cannot be determined because the LIBOR Determination Date for the applicable Interest Accrual Period has not yet occurred, the Required Daily
Deposit Target Finance Charge Amount shall be the Class C Tranche Interest Allocation determined based on a pro forma calculation made on the assumption that LIBOR will be LIBOR for the applicable period determined on the first day of such calendar
month, multiplied by 1.25. 
  

 5 

 “Required Daily Deposit Target Principal Amount” means, for any day in a Due Period,
(i) if such Due Period is in the Accumulation Period for the Class C(2008-3) Notes, the Accumulation Amount, (ii) if such day is on or after the occurrence and during the continuance of a Class C(2008-3) Adverse Event, the Nominal
Liquidation Amount of the Class C(2008-3) Notes, and (iii) in all other circumstances, zero. 
 “Required Subordinated Amount of
Class D Notes” means, for the Class C(2008-3) Notes for any date of determination, zero, subject to adjustment in accordance with Section 2.02. 
 “Reuters Screen LIBOR01” means the display page currently so designated on the Reuters Screen (or such other page as may replace that page on that service for the purpose of displaying comparable
rates or prices). 
 “Specified Rating” means, for the Class C(2008-3) Notes, BBB with respect to Standard & Poors,
Baa2 with respect to Moody’s and BBB with respect to Fitch. 
 “Stated Principal Amount” means $105,000,000 or such
higher amount as is specified in any Notice of Additional Issuance under Section 2.09. 
 “Targeted Accumulation Reserve
Subaccount Deposit” means, with respect to any Distribution Date during the Accumulation Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class C(2008-3) Notes as of the close of
business on the last day of the related Due Period or (ii) any other amount designated by the Calculation Agent on behalf of the Issuer; provided, however, that if such designation is of a lesser amount, the applicable Note Rating
Agencies shall have provided prior written confirmation that a Ratings Effect will not occur with respect to such change. 
 Section 1.02. Representations and Warranties of Issuer. The Issuer represents and warrants that: 
 (a) the Issuer has
been duly formed and is validly existing as a statutory trust in good standing under the laws of the State of Delaware, and has full power and authority to execute and deliver this Terms Document and to perform the terms and provisions hereof;

 (b) the execution, delivery and performance of this Terms Document by the Issuer have been duly authorized by all necessary corporate and
statutory trust proceedings of any Beneficiary and the Owner Trustee, do not require any approval or consent of any governmental agency or authority, and do not and will not conflict with any material provision of the Certificate of Trust or the
Trust Agreement of the Issuer; 
 (c) this Terms Document is the valid, binding and enforceable obligations of the Issuer, 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; 
  

 6 

 (d) to the best of the Issuer’s knowledge, this Terms Document will not conflict with any law or
governmental regulation or court decree applicable to it; 
 (e) the Issuer is not required to be registered under the Investment Company
Act; 
 (f) all information heretofore furnished by the Issuer in writing to the Indenture Trustee for purposes of or in connection with this
Terms Document or any transaction contemplated hereby is, and all such information hereafter furnished by the Issuer in writing to the Indenture Trustee will be, true and accurate in every material respect or based on reasonable estimates on the
date as of which such information is stated or certified; and 
 (g) to the best knowledge of the Issuer, there are no proceedings or
investigations pending against the Issuer before any court, regulatory body, administrative agency, or other tribunal or governmental instrumentality having jurisdiction over the Issuer (A) asserting the invalidity of this Terms Document,
(B) seeking to prevent the consummation of any of the transactions contemplated by this Terms Document or (C) seeking any determination or ruling which in the Issuer’s judgment would materially and adversely affect the performance by
the Issuer of its obligations under this Terms Document or the validity or enforceability of this Terms Document. 
 Section 1.03.
Representations and Warranties of Indenture Trustee. The Indenture Trustee represents and warrants and any successor trustee shall represent and warrant that: 
 (a) The Indenture Trustee is organized, existing and in good standing under the laws of the United States of America; 
 (b) The Indenture Trustee has full power, authority and right to execute, deliver and perform this Indenture, and has taken all necessary action to authorize the execution, delivery and performance by it of this Terms
Document; and 
 (c) This Terms Document has been duly executed and delivered by the Indenture Trustee. 
 Section 1.04. Limitations on Liability. 
 (a) It is expressly understood and agreed by the parties hereto that (i) this Terms Document is executed and delivered by the Owner Trustee not individually or personally but solely as Owner Trustee under the Trust Agreement, in the
exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as a personal representation, undertaking or agreement
by the Owner Trustee but is made and intended for the purpose of binding only the Issuer, (iii) nothing herein contained will be construed as creating any liability on the Owner Trustee individually or personally, to perform any covenant of the
Issuer either expressed or implied herein, all such liability, if any, being expressly waived by the parties to this Terms Document and by any Person claiming by, through or under them and (iv) under no circumstances will the Owner Trustee be
personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Terms Document or any related
documents. 
  

 7 

 (b) None of the Indenture Trustee, the Owner Trustee, the Calculation Agent, any Beneficiary, the
Depositor, any Master Servicer or any Servicer or any of their respective officers, directors, employees, incorporators or agents will have any liability with respect to this Terms Document, and recourse may be had solely to the Collateral pledged
to secure these Class C(2008-3) Notes under the Indenture, the Indenture Supplement and this Terms Document. 
 Section 1.05.
Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD
RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER STATE. 
 Section 1.06. Counterparts. This Terms Document may be executed in
any number of counterparts, each of which when so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.07. Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture and the
Indenture Supplement is in all respects ratified and confirmed and the Indenture as supplemented by the Indenture Supplement and this Terms Document shall be read, taken and construed as one and the same instrument. 
 ARTICLE II 
 The Class C(2008-3) Notes

 Section 2.01. Creation and Designation. There is hereby created a Tranche of Class C Notes to be issued pursuant to the
Indenture and the Indenture Supplement to be known as the “DiscoverSeries Class C(2008-3) Notes.” 
 Section 2.02.
Adjustments to Required Subordinated Amount. 
 (a) On any date, the Issuer may, at the direction of the Beneficiary, change the
Required Subordinated Amount of Class D Notes for the Class C(2008-3) Notes (though not below zero) and may add such definitions and other terms and make such additional amendments to this Terms Document as shall be necessary to determine such
Required Subordinated Amount of Class D Notes without the consent of any Noteholders; provided that the Issuer has received written confirmation from each applicable Note Rating Agency that the change in such percentage and such other
amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes; provided, however, that at any time the Class D Notes are or will be held by Discover Bank or any of its affiliates, the Required Subordinated
Amount of Class D Notes for these Class C(2008-3) Notes may not be increased above zero. 
 (b) On any date, the Issuer may, at the direction
of the Beneficiary, replace all or a portion of the Required Subordinated Amount of Class D Notes for the Class C(2008-3) Notes with a different form of credit enhancement (including, without limitation, a cash collateral 

  

 8 

 
account, a letter of credit, a reserve account, a surety bond, an insurance policy or a collateral interest, or any combination thereof) and may add such
definitions and other terms and make such additional amendments to this Terms Document as shall be necessary for such replacement without the consent of any Noteholders, provided that the Issuer has received written confirmation from each
applicable Note Rating Agency that such replacement and such other amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 
 Section 2.03. Interest Payment. For each Interest Payment Date, the amount of interest due with respect to the Class C(2008-3) Notes shall be an amount equal to 
  

	 	(i)	(A) a fraction, the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 360, times

 (B) the Note Interest Rate in effect with respect to such related Interest Accrual Period, times 
  

	 	(ii)	the Outstanding Dollar Principal Amount of the Class C(2008-3) Notes determined as of the first date of such related Interest Accrual Period, plus 

any Class C Tranche Interest Allocation Shortfall for such Class C(2008-3) Notes for the immediately preceding Distribution Date, together with interest thereon at
the Note Interest Rate in effect with respect to such related Interest Accrual Period, calculated on the basis of the actual number of days in the related Interest Accrual Period and a 360-day year. 
 Section 2.04. Notification of LIBOR. On each LIBOR Determination Date, the Indenture Trustee shall send to the Issuer, the Beneficiary, each
applicable Master Servicer and any stock exchange on which the Class C(2008-3) Notes are then listed (if the rules of such exchange so require), by facsimile transmission or electronic transmission, notification of LIBOR for the following Interest
Accrual Period. 
 Section 2.05. Payments of Interest and Principal. 
 (a) The Issuer will cause interest to be paid on each Interest Payment Date and principal to be paid on the Expected Maturity Date; provided,
however, that it shall not be an Event of Default if principal is not paid in full on such Expected Maturity Date unless funds for such payment have been allocated in accordance with Section 3.01 of the Indenture Supplement; and
provided, further, that if a Class C(2008-3) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each Principal Payment Date for the Class C(2008-3) Notes in accordance with
Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the Class C(2008-3) Notes shall be made as set forth in Section 1101 of the Indenture. 
 (b) The right of the Class C(2008-3) Noteholders to receive payments from the Issuer will terminate on the Class C(2008-3) Termination Date. 

 

 9 

 (c) All payments of principal, interest or other amounts to the Class C(2008-3) Noteholders will be made
pro rata based on the Stated Principal Amount of their Class C(2008-3) Notes. 
 Section 2.06. Form of Delivery of Class C(2008-3)
Notes; Denominations. 
 (a) The Class C(2008-3) Notes shall be delivered in the form of a definitive Registered Note as provided in
Section 201 of the Indenture. The form of the Class C(2008-3) Notes is attached hereto as Exhibit A. 
 (b) The Class C(2008-3) Notes
shall, until such time as the laws of any jurisdiction in which they are offered or sold no longer restrict the transfer or sale thereof, bear a legend in substantially the following form: 
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A. THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF DISCOVER CARD EXECUTION NOTE TRUST AND DISCOVER BANK THAT (A) THIS NOTE MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT OR, IN THE CASE OF THE INITIAL HOLDER HEREOF ONLY, ANOTHER APPLICABLE EXEMPTION UNDER THE SECURITIES ACT, (2) TO DISCOVER CARD EXECUTION NOTE TRUST, DISCOVER BANK OR THEIR AFFILIATES OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT, IF APPLICABLE, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
SUBSEQUENT PURCHASER FROM IT OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. 
 No Class C(2008-3) Notes shall be transferred except in accordance
with the transfer restrictions described in the legend set forth above. 
 (c) The Class C(2008-3) Notes will be issued in minimum
denominations of $100,000 and integral multiples of $1,000 in excess of that amount. 
  

 10 

 Section 2.07. Delivery and Payment for the Class C(2008-3) Notes. The Issuer shall execute
and deliver the Class C(2008-3) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class C(2008-3) Notes when authenticated, each in accordance with Sections 203 and 303 of the Indenture. 
 Section 2.08. Targeted Deposits to the Accumulation Reserve Account. The deposit targeted to be made to the Accumulation Reserve Subaccount
for the Class C(2008-3) Notes for any Due Period during the Accumulation Reserve Funding Period will be an amount equal to the Targeted Accumulation Reserve Subaccount Deposit minus any amount on deposit in the Accumulation Reserve Subaccount
for the Class C(2008-3) Notes. 
 Section 2.09. Additional Issuances of Notes. Subject to clauses (ii), (iii), (iv) and
(v) of Sections 2.02 and Section 2.03 of the Indenture Supplement, the Issuer may issue additional Class C(2008-3) Notes, so long as the following conditions precedent are satisfied: 
 (a) the Issuer shall have given the Indenture Trustee written notice of such issuance of additional Class C(2008-3) Notes (the “Notice of
Additional Issuance”) at least one (1) Business Day in advance of the Issuance Date thereof, which notice shall include: 
  

	 	(i)	the Issuance Date of such additional Class C(2008-3) Notes; 

  

	 	(ii)	the amount of such additional Class C(2008-3) Notes being offered and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class C(2008-3) Notes;

  

	 	(iii)	the date from which interest on such additional Class C(2008-3) Notes will accrue (which may be a date prior to the date of issuance thereof); 

  

	 	(iv)	the first Interest Payment Date on which interest will be paid on such additional Class C(2008-3) Notes; and 

  

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class C(2008-3) Notes to clarify the rights of Holders of such additional Class C(2008-3) Notes or
the effect of such issuance of additional Class C(2008-3) Notes on any calculations to be made with respect to the Class C(2008-3) Notes, Class C, or the Issuer. 

 All such terms shall be incorporated into and form a part of this Terms Document on and after the effective date of such Class C(2008-3) Notes; and 
 (b) no Class C(2008-3) Adverse Event has occurred and is continuing. 
 The Issuer shall not have to satisfy the conditions set forth in Section 310 of the Indenture in connection with an issuance of additional Class C(2008-3) Notes so long as such conditions were satisfied or waived
in connection with the initial issuance of Class C(2008-3) Notes. 
 [Remainder of page intentionally blank; signature page follows] 

  

 11 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the day and year
first above written. 
  

			
	DISCOVER CARD EXECUTION NOTE TRUST, as Issuer
		
	By:	 	Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee
		
	By:	 	 /s/ Jennifer A. Luce

	Name:	 	Jennifer A. Luce
	Title:	 	Sr. Financial Services Officer
	
	U.S. BANK NATIONAL ASSOCIATION,
	as Indenture Trustee
		
	By:	 	 /s/ Patricia M. Child

	Name:	 	Patricia M. Child
	Title:	 	Vice President

  

 [Signature Page to Class C(2008-3) Terms Document] 

 Exhibit A 
 Form of Class C Note 
 See attached.

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