Document:

exv4w4

 

Exhibit 4.4

 

DISCOVER BANK

Master Servicer, Servicer and Seller

and

U.S. BANK NATIONAL ASSOCIATION

Trustee

on behalf of the Certificateholders

SERIES SUPPLEMENT

Dated as of [________], 2007

to

AMENDED AND RESTATED POOLING AND SERVICING AGREEMENT

Dated as of November 3, 2004, as amended

 

DISCOVER CARD MASTER TRUST I

SERIES 2007-CC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1.
	 	Definitions	 	 	1	 
	SECTION 2.
	 	Subordination	 	 	8	 
	SECTION 3.
	 	Representations and Warranties of the Sellers	 	 	8	 
	SECTION 4.
	 	Representations,
Warranties and Covenants of Discover Bank as Master Servicer and Servicer
	 	 	10	 
	SECTION 5.
	 	Representations and Warranties of Other Servicers	 	 	10	 
	SECTION 6.
	 	Representations, Warranties and Covenants of the Trustee	 	 	11	 
	SECTION 7.
	 	Authentication of Certificates	 	 	11	 
	SECTION 8.
	 	Establishment and Administration of Investor Accounts	 	 	11	 
	SECTION 9.
	 	Allocations of Collections	 	 	12	 
	SECTION 10.
	 	Servicing Compensation	 	 	18	 
	SECTION 11.
	 	Investor Certificateholders’ Monthly Statement	 	 	19	 
	SECTION 12.
	 	Purchase of Notes; Sales of Receivables	 	 	19	 
	SECTION 13.
	 	Ratification of Pooling and Servicing Agreement	 	 	20	 
	SECTION 14.
	 	Counterparts	 	 	20	 
	SECTION 15.
	 	Governing Law	 	 	20	 
	SECTION 16.
	 	Intention of Parties	 	 	20	 
	SECTION 17.
	 	Amendment for Sale Accounting Purposes	 	 	20	 
	SECTION 18.
	 	Election Under Delaware Asset-Backed Securities Facilitation Act	 	 	21	 
	SECTION 19.
	 	Increases to Series Investor Interest	 	 	21	 

 i 

 

 

EXHIBITS

EXHIBIT A: Form of Series 2007-CC Investor Certificate

EXHIBIT B: Form of Certificateholders’ Monthly Statement

 ii 

 

 

DISCOVER CARD MASTER TRUST I

SERIES 2007-CC INVESTOR CERTIFICATE

          This Series of Master Trust Certificates is established pursuant to Section 6.06 of that
certain Amended and Restated Pooling and Servicing Agreement, dated as of November 3, 2004, as
amended, by and between DISCOVER BANK, a Delaware banking corporation (“Discover Bank”), as Master
Servicer, Servicer and Seller and U.S. BANK NATIONAL ASSOCIATION (the “Trustee”), as Trustee (the
“Pooling and Servicing Agreement”). The Pooling and Servicing Agreement and this series
supplement, by and among the Master Servicer, the Servicer, the Seller and the Trustee (the “Series
Supplement”) together establish the series of Master Trust Certificates to be known as the DISCOVER
CARD MASTER TRUST I, SERIES 2007-CC INVESTOR CERTIFICATE (“Series 2007-CC”). Series 2007-CC is an
Interchange Series that is a member of Group One of the Discover Card Master Trust I and is
eligible for reallocations to and from other series in Group One. (For purposes of any Series
Supplement for any other Series that requires that Interchange Series be so designated in their
Series Term Sheet, this introductory paragraph shall constitute the Series Terms Sheet for this
Series. For purposes of any Series Supplement for any other Series that allocates payments
sequentially by Class, the entire Series Investor Interest of this Series shall constitute Class
A.)

          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 Investor Certificateholder:

     SECTION 1. Definitions.

          (a) Capitalized terms not otherwise defined in this Series Supplement shall have the meanings
ascribed to them in the Pooling and Servicing Agreement. Capitalized terms that refer to a Series
refer to Series 2007-CC.

          (b) The following terms have the definitions set forth below with respect to Series 2007-CC,
unless the context otherwise clearly requires:

     “Accumulation Period” with respect to any Note, shall have the meaning set forth in the
applicable Indenture Supplement.

     “Additional Collateral Certificate” shall have the meaning set forth in the Indenture.

     “Calculation Agent” shall have the meaning set forth in the Indenture.

     “Charge-offs” shall have the meaning set forth in the Indenture.

     “Class A Cumulative Investor Charged-Off Amount” on any Distribution Date, shall have the
meaning set forth in step (21) (Allocation from the Master Trust Group One Finance Charge
Collections Reallocation Account) of Section 3.01 of the Indenture Supplement for the
DiscoverSeries, as adjusted pursuant to Sections 9(b)(7) and 9(b)(10).

     “Class A Principal Distribution Amount Shortfall” shall have the meaning set forth in step
(64) (Allocation from Group One Principal Collections Reallocation Account for Principal Shortfalls
other than Prefunding Shortfalls) of Section 3.01 of the Indenture Supplement for the
DiscoverSeries, as adjusted pursuant to Section 9(b)(15).

 

 

     “Class A Required Amount Shortfall” on any Distribution Date, shall have the meaning set forth
in step (9) (Allocation from the Master Trust Group One Finance Charge Collections Reallocation
Account) of Section 3.01 of the Indenture Supplement for the DiscoverSeries, as adjusted pursuant
to Section 9(b)(6) and 9(b)(9).

     “Clean-Up Call Amount” shall have the meaning set forth in Section 12(a).

     “Controlled Liquidation Period” shall mean any period in which the Targeted Principal Deposit
minus the Targeted Prefunding Deposit for any Tranche of Notes is greater than zero.

     “Discover Bank” shall have the meaning set forth in the recitals hereto.

     “Discount Note” shall have the meaning set forth in the applicable Indenture Supplement.

     “Distribution Date” shall mean the 15th day of each calendar month (or, if such day
is not a Business Day, the next succeeding Business Day) commencing in [___], 2007.

     “Early Redemption Event” shall have the meaning set forth in the Indenture.

     “Event of Default” shall have the meaning set forth in the Indenture.

     “Excess Spread Amount” shall have the meaning set forth in the applicable Indenture
Supplement.

     “Finance
Charge Allocation Amounts” with respect to any series, class
or Tranche of Notes, shall have the meaning set forth in the
Indenture.

     “Finance Charge Amounts” shall have the meaning set forth in the Indenture.

     “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 Interchange Reallocation Account” shall have the meaning specified in Section 8.

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

     “Indenture” shall mean that certain Indenture, dated as of [___], 2007, by and between
Discover Card Execution Note Trust and U.S. Bank National Association.

     “Indenture Supplement” shall mean that certain Indenture Supplement, dated as of [___
___], 2007, by and between Discover Card Execution Note Trust and U.S. Bank National Association or,
as applicable, any subsequent indenture supplement entered into pursuant to the Indenture.

2

 

     “Indenture Trustee” shall have the meaning set forth in the Indenture.

     “Initial Dollar Principal Amount” with respect to any Note, shall have the meaning set forth
in the applicable Indenture Supplement.

     “Interchange Series” shall mean this Series and each series issued by the Trust that indicates
in its Series Supplement that it is an Interchange Series.

     “Interchange Subgroup Allocable Group Excess Spread” shall mean, if the Group Excess Spread is
greater than or equal to zero, the product of the Group Excess Spread and the Interchange Subgroup
Excess Allocation Percentage; and if the Group Excess Spread is less than zero, the product of the
Group Excess Spread and the Interchange Subgroup Shortfall Allocation Percentage.

     “Interchange Subgroup Excess Allocation Percentage” shall mean a ratio, the numerator of which
is the sum of the Series Investor Interest for each Interchange Series that is a member of the same
Group as the Series established hereby (including the Series established hereby); and the
denominator of which is the sum of the Series Investor Interests for each Series that is a member
of the same Group as the Series established hereby (including each Interchange Series and the
Series established hereby).

     “Interchange Subgroup Excess Spread” shall mean, for any Distribution Date, the sum of (x) all
amounts deposited into the Group Interchange Reallocation Account for all Interchange Series and
(y) the Interchange Subgroup Allocable Group Excess Spread.

     “Interchange Subgroup Shortfall Allocation Percentage” shall mean a ratio, the numerator of
which is the sum of the Series Excess Spread for each Interchange Series that is a member of the
same Group as the Series established hereby (including, if applicable, the Series established
hereby) for which the Series Excess Spread is less than zero; and the denominator of which is the
sum of the Series Excess Spread for each Series that is a member of the same Group as the Series
established hereby (including, if applicable, each Interchange Series and the Series established
hereby) for which the Series Excess Spread is less than zero.

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

     “Investor Certificateholder” shall mean, at any time, the holder or holders of the Series
2007-CC Collateral Certificate.

     “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 Investor Interest on the Series Closing Date).
For purposes of this definition, the Series Investor Interest on the first day of any Due Period in
which an increase in the Series Investor Interest pursuant to Section 19 has occurred shall include
the amount of all such increases in the Series Investor Interest occurring during such Due Period.

3

 

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

     “Investor Servicing Fee Shortfall” shall have the meaning specified in Section 9(b)(3).

     “Monthly Interest Accrual Period” shall have the meaning set forth in the applicable Indenture
Supplement.

     “Nominal Liquidation Amount” with respect to any Note, shall have the meaning set forth in the
applicable Indenture Supplement.

     “Note Issuance Trust” shall mean the Discover Card Execution Note Trust, formed pursuant to
that certain Trust Agreement, dated as of [___], 2007, by and between Discover Bank and
Wilmington Trust Company.

     “Note Issuance Trust’s Annual Report Date” shall have the meaning specified in Section 4(b).

     “Notes” shall mean any notes created under the applicable Indenture Supplement.

     “Outstanding Dollar Principal Amount” with respect to any Note, shall have the meaning set
forth in the applicable Indenture Supplement.

     “Paying Agent” shall mean the Corporate Trust Office of the Trustee.

     “Pooling and Servicing Agreement” shall have the meaning set forth in the recitals hereto.

     “Prefunding Negative Spread” shall have the meaning set forth in the applicable Indenture
Supplement.

     “Principal Allocation Amount” with respect to any series, class or Tranche of Notes, shall
have the meaning set forth in the Indenture.

     “Principal Distribution Amount Shortfall” when used for purposes of any Series Supplement for
any other series in the Group to which the Series established hereby belongs, shall mean the Class
A Principal Distribution Amount Shortfall.

     “Required Daily Deposit” shall have the meaning set forth in the Indenture.

     “Revolving Period” shall mean each Due Period, prior to the Series Termination Date, for which
the Targeted Principal Deposit for the related Distribution Date for all Notes is zero.

     “Series 2007-CC” shall have the meaning set forth in the recitals hereto.

     “Series 2007-CC Collateral Certificate” shall mean the Investor Certificate created under this
Series Supplement and initially issued to the Investor Certificateholder.

     “Series 2007-CC Collateral Certificate Percentage” shall have the meaning set forth in the
Indenture.

4

 

     “Series Charge-Off Allocation Percentage” shall mean, with respect to any Distribution Date or
any Trust Distribution Date, as applicable, the percentage equivalent of a fraction the numerator
of which shall be the amount of the Series 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; for purposes of this definition,
the Series Investor Interest as of the first day of any Due Period in which the Series Closing Date
has occurred or the Series Investor Interest has been increased in accordance with Section 19 shall
include the Series Investor Interest as of the Series Closing Date and all increases in the Series
Investor Interest during such Due Period, as applicable.

     “Series Closing Date” shall mean [___], 2007.

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

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

     “Series Excess Spread” shall, for any Distribution Date (i) so long as the only collateral
certificate owned by the Note Issuance Trust is the Series 2007-CC Collateral Certificate, mean the
sum of the Excess Spread Amounts for the DiscoverSeries and each additional series of Notes issued
under the Indenture or (ii) during any period when Additional Collateral Certificates are owned by
the Note Issuance Trust, have the meaning set forth in the documents relating to such addition
(provided that such documents are accepted and agreed to by the parties hereto).

     “Series Finance Charge Allocation Percentage” shall mean, with respect to any Distribution
Date or any Trust Distribution Date, as applicable,

     (a) so long as an Early Redemption Event or an Event of Default is not then continuing with
respect to a series, class or Tranche of Notes issued by the Note Issuance Trust, the percentage
equivalent of a fraction the numerator of which shall be the amount of the Series 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, or

     (b) if an
Early Redemption Event or an Event of Default for any series, class or Tranche of
Notes issued by the Note Issuance Trust has occurred and is then continuing, the percentage
equivalent of a fraction the numerator of which shall be the Finance
Charge Allocation Amounts for each
series, class or Tranche of Notes multiplied by the Series 2007-CC Collateral Certificate Percentage; 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;

for purposes of this definition, the Series Investor Interest as of the first day of any Due Period
in which the Series Closing Date has occurred or the Series Investor Interest has been increased in

5

 

accordance with Section 19 shall include the Series Investor Interest as of the Series Closing Date
and all increases in the Series Investor Interest during such Due Period, as applicable.

     “Series Finance Charge Collections” shall mean with respect to any day or any Distribution
Date or Trust Distribution Date, as applicable, an amount equal to the product of (x) the Series
Finance Charge Allocation Percentage 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 Series Finance Charge Collections with respect to any Class of Notes shall be
increased by the lesser of (i) the amount of Series Prefunding Negative Spread 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 Series Invested Amount and the denominator of
which is the Aggregate Invested Amount.

     “Series Interchange” shall mean, with respect to any Distribution Date or Trust Distribution
Date, as applicable, an amount equal to the product of (x) the Series Interchange Allocation
Percentage and (y) Interchange for the related Due Period.

     “Series Interchange Allocation Percentage” shall mean, with respect to any Distribution Date
or Trust Distribution Date, as applicable, the percentage equivalent of a fraction the numerator of
which shall be the amount of Series 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; for purposes of this definition,
the Series Investor Interest as of the first day of any Due Period in which the Series Closing Date
has occurred or the Series Investor Interest has been increased in accordance with Section 19 shall
include the Series Investor Interest of all Investor Certificates as of the Series Closing Date and
all increases in the Series Investor Interest during such Due Period, as applicable.

     “Series Invested Amount” shall mean the product of (x) the sum of the Outstanding Dollar
Principal Amounts for all Notes issued by the Note Issuance Trust and (y) the Series 2007-CC
Collateral Certificate Percentage.

     “Series Investor Charged-Off Amount” shall mean, with respect to this Series for any
Distribution Date, an amount equal to the product of (a) the Charged-Off Amount for such
Distribution Date and (b) the Series Charge-Off Allocation Percentage.

     “Series Investor Interest” shall (i) so long as the only collateral certificate owned by the
Note Issuance Trust is the Series 2007-CC Collateral Certificate, mean an amount equal to the sum,
without duplication, of the Nominal Liquidation Amounts for each series, class or Tranche of Notes
then outstanding or (ii) during any period when Additional Collateral Certificates are owned by the
Note Issuance Trust, have meaning set forth in the documents relating to such addition (provided
that such documents are accepted and agreed to by the parties hereto).

     “Series Minimum Principal Receivables Balance” shall mean, with respect to the Series
established hereby, on any date of determination (i) if no series, class or Tranche of Notes has a
Targeted Principal Deposit that is greater than zero, the Series Investor Interest on such date of
determination, divided by 0.93, and (ii) if any series, class or Tranche of Notes has a Targeted
Principal Deposit that is greater than zero, the percentage equivalent of a fraction, the numerator
of which shall be the sum of, without duplication, the Principal Allocation Amounts for each

6

 

such series, class or Tranche, multiplied by the Series 2007-CC Collateral Certificate
Percentage, divided by 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 and the Rating Agencies, 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 Principal Collections, the “Series Principal
Collections Allocation Percentage” and with respect to Finance Charge Collections, the “Series
Finance Charge Collections Allocation Percentage.”

     “Series Prefunding Negative Spread” shall mean the sum of the amounts of Prefunding Negative
Spread for each Tranche of Notes multiplied by the Series 2007-CC Collateral Certificate
Percentage.

     “Series Principal Amounts” shall have the meaning set forth in the applicable Indenture
Supplement.

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

     “Series Principal Collections Allocation Percentage” shall mean, with respect to any
Distribution Date or any Trust Distribution Date, as applicable,

     (a) if no series, class or Tranche of Notes has a Targeted Principal Deposit that is greater
than zero, the percentage equivalent of a fraction the numerator of which shall be the amount of
the Series 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

     (b) if any series, class or Tranche of Notes has a Targeted Principal Deposit that is greater
than zero, the percentage equivalent of a fraction, the numerator of which shall be the sum of the
Principal Allocation Amounts for each series, class or Tranche of Notes multiplied by the
Series 2007-CC Collateral Certificate Percentage; 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;

for purposes of this definition, the Series Investor Interest as of the first day of any Due Period
in which the Series Closing Date has occurred or the Series Investor Interest has been increased in accordance with Section 19 shall include the Series Investor Interest of all Investor

7

 

Certificates as of the Series Closing Date and all increases in the Series Investor Interest during
such Due Period, as applicable.

     “Series Required Principal Amount” shall mean, for this Series, with respect to each
Distribution Date of any Controlled Liquidation Period, 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 product of (A) the sum of the Targeted Principal Deposits minus the Targeted Prefunding
Deposits for each Tranche of Notes for such Distribution Date and (B) the Series 2007-CC Collateral
Certificate Percentage, and with respect to each other Series that is a member of the same Group as
the Series established hereby, the “Series Required Principal Amount” specified in the Series
Supplement for such series for such Distribution Date.

     “Series Servicing Fee” shall have the meaning set forth in the Indenture Supplement.

     “Series Supplement” shall have the meaning set forth in the recitals hereto.

     “Series Termination Date” shall mean, unless extended by the parties hereto, [___],
[2028] or, if earlier, the date on which the Nominal Liquidation Amount for all series, classes and
Tranches of Notes has been reduced to zero.

     “Statement Date” shall mean each Distribution Date, commencing in [___], 2007.

     “Targeted Prefunding Amount” shall have the meaning set forth in the applicable Indenture
Supplement.

     “Targeted Prefunding Deposit” shall have the meaning set forth in the applicable Indenture
Supplement.

     “Targeted Principal Deposit” shall have the meaning set forth in the applicable Indenture
Supplement.

     “Tranche” shall have the meaning set forth in the Indenture.

     “Transferred Assets” shall have the meaning set forth in Section 18 hereto.

     “Trustee” shall have the meaning set forth in the recitals hereto.

     “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.

     “Unscheduled Principal Distribution Amount Shortfall” shall have the meaning set forth in the
applicable Indenture Supplement.

SECTION 2. Subordination.

          (a) No Subordination of Series. Series 2007-CC shall not be subordinated in right of payment
to any other Series, whether currently outstanding or to be issued in the future. No other series
issued by the Trust may be subordinated in right of payment to Series 2007-CC.

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

8

 

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:

          (a) 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.

          (b) The Pooling and Servicing Agreement creates a valid and enforceable security interest (as
defined in the applicable UCC) which security interest is prior to all other Liens and is
enforceable as such against creditors of and purchasers from 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.

          (c) The Receivables constitute “accounts” within the meaning of Article 9 of the applicable
UCC.

          (d) Each Seller has caused or will have caused, within ten days of the date of this Series
Supplement, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security interest (as
defined in the applicable UCC) in the Receivables conveyed to the Trustee under the Pooling and
Servicing Agreement.

          (e) Other than the sale, transfer, assignment and conveyance of the Receivables to the Trust
and the grant of a security interest therein pursuant to the Pooling and Servicing Agreement, the
Seller has not pledged, assigned, sold, granted a security interest in or otherwise conveyed any of
the Receivables.

          (f) The Seller has not authorized the filing of and is not aware of any financing statements
against the Seller that include a description of collateral covering the Receivables, other than
any financing statement (i) relating to the interest of the Trust in the Receivables under the
Pooling and Servicing Agreement or (ii) that has been terminated.

          (g) The Seller is not aware of any judgment or tax lien filings against it.

     The representations and warranties set forth in this Section 3 shall survive the transfer and
assignment to the Trust of the Receivables transferred to the Trust by the Sellers. None of (i)
compliance with the representations and warranties set forth in this Section 3, (ii) compliance
with the representations and warranties set forth in Sections 2.04(d) and (e) of the Pooling
and Servicing Agreement or (iii) compliance with the provisions of Section 13.02 of the Pooling and

9

 

Servicing Agreement can be waived by the Trustee without the prior written consent of Standard &
Poor’s.

     SECTION 4. Representations, Warranties and Covenants of Discover Bank as Master Servicer and
Servicer.

          (a) Representations and Warranties. 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 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.

          (b) Regulation AB Compliance. The Master Servicer and each Servicer agree that the provisions
of Article XIV of the Pooling and Servicing Agreement shall be for the benefit of the Note Issuance
Trust. Without limiting the foregoing, the Master Servicer and each Servicer agree that (i) they
will make available to the depositor for the Note Issuance Trust, on or before the date on which
the Note Issuance Trust is required to file its Annual Report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 on Form 10-K with the Securities and Exchange Commission (the
“Note Issuance Trust’s Annual Report Date”), such assessments, attestations, compliance
certificates and other materials consistent in scope with those provided to the Seller under
Article XIV, (ii) they will provide such additional information and disclosures as shall be
necessary for any prospectus or other offering document for the Notes to comply with Regulation AB,
consistent with the requirements of Article XIV, and (iii) they shall use their best efforts to
cause any Servicing Participant used by them (directly or indirectly) for the benefit of the
Sellers to comply with the provisions of this Section 4(b) to the same extent as if such Servicing
Participant were the Master Servicer or the Servicer. The Master Servicer and each Servicer
acknowledge that the depositor for the Note Issuance Trust or any other Person that will be
responsible for signing the Sarbanes Certification on behalf of the Note Issuance Trust may rely on
the certifications provided pursuant to this Section 4(b) in signing a Sarbanes Certification and
filing such certification with the Commission.

     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

10

 

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, Warranties and Covenants of the Trustee.

          (a) Representations and Warranties. 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.

          (b) Regulation AB Compliance. The Trustee agrees that the provisions of Article XIV of the
Pooling and Servicing Agreement shall be for the benefit of the Note Issuance Trust. Without
limiting the foregoing, the Trustee agrees that (i) it will make available to the depositor for the
Note Issuance Trust, on or before the Note Issuance Trust’s Annual Report Date, such assessments,
attestations, compliance certificates and other materials consistent in scope with those provided
to the Seller under Article XIV and (ii) it will provide such additional information and
disclosures as shall be necessary for any prospectus or other offering document for the Notes to
comply with Regulation AB, consistent with the requirements of Article XIV. The Trustee
acknowledges that the depositor for the Note Issuance Trust or any other Person that will be
responsible for signing the Sarbanes Certification on behalf of the Note Issuance Trust may rely on
the certifications provided pursuant to this Section 6(b) in signing a Sarbanes Certification and
filing such certification with the Commission.

     SECTION 7. Authentication of Certificates. Pursuant to the request of
the Sellers, the Trustee shall cause the Series 2007-CC
Collateral Certificate, in substantially the form of Exhibit A hereto, 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. The 2007-CC Collateral
Certificate shall be issued in fully registered form, without coupons.

     SECTION 8. Establishment and Administration of Investor Accounts.

          (a) The Series Distribution Account and Series 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 office or branch of either the Trustee or a
Qualified Institution, two non-interest bearing segregated trust accounts (the “Series Distribution
Account”; and, for Collections the “Series Collections Account”) bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the Investor
Certificateholder. The Trust shall possess all right, title and interest in all funds on deposit
in the Series Distribution Account and the Series 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

11

 

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 and the Series 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 and the Series 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, three
non-interest bearing segregated trust accounts for the Group of which the Series established hereby
is a member (for reallocated Series Finance Charge Collections and similar amounts for other
series, the “Group Finance Charge Collections Reallocation Account,” for reallocated Series
Principal Collections and amounts used to reimburse charge-offs for this Series and other series in
the Group of which this Series is a member, the “Group Principal Collections Reallocation Account”
and for reallocated Series Interchange and similar amounts for other series, the “Group Interchange
Reallocation Account”) bearing a designation clearly indicating that the funds deposited therein
are held for the benefit of the Investor Certificateholder. 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, the Group Principal Collections Reallocation Account and the
Group Interchange Reallocation Account 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, the Group Principal Collections Reallocation Account and the
Group Interchange 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, the Group Principal
Collections Reallocation Account and the Group Interchange Reallocation Account.

          (c) Transfer of Investor Accounts. If at any time any of the Investor Accounts established in
Sections 8(a) through 8(b) 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, the Series Principal Collections and the Series Interchange for the related Due
Period.

          (b) Deposits. The Master Servicer shall, on or before each Distribution Date, direct the
Trustee in writing that funds be paid or deposited in the following amounts, to the

12

 

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.

     (1) Series Finance Charge Collections and Series Interchange to Series Distribution Account.
An amount equal to the sum of (x) Series Finance Charge Collections and (y) Series
Interchange shall be withdrawn from the Series Collections Account and deposited into the
Series Distribution Account.

 (2) Series Principal Collections to Series Distribution Account. An amount equal to the
Series Principal Collections shall be withdrawn from the Series Collections Account and
deposited into the Series Distribution Account.

 (3)
Investor Servicing Fee from Series Distribution Account. An amount equal to the lesser of

	 	(x)	 	the Investor Servicing Fee and
	 
	 	(y)	 	the portion of the Series Servicing Fee payable
to the Master Servicer under step 7 (Series Servicing Fee from Series
Finance Charge Amounts) of Section 3.01 of the Indenture Supplement for
the DiscoverSeries (and any comparable step under any other Indenture
Supplement, as applicable)

shall be withdrawn from the Series Distribution Account and paid to the Master Servicer. The
amount by which the Investor Serving Fee exceeds the amount of such payment shall be the “Investor
Servicing Fee Shortfall.”

     (4) Reallocation to Group Finance Charge Collections Reallocation Account. An amount, if
any, equal to the portion of Series Finance Charge Amounts for the Note Issuance Trust that
are to be reallocated to the Group Finance Charge Collections Reallocation Account under
step (56) (Reallocation of Series Finance Charge Amounts to the Master Trust Group One
Finance Charge Collections Reallocation Account) of Section 3.01 of the Indenture Supplement
for the DiscoverSeries (and any comparable step under any other Indenture Supplement, as
applicable) shall be withdrawn from the Series Distribution Account and deposited into the
Group Finance Charge Collections Reallocation Account.

     (5) Reallocation to Group Interchange Reallocation Account. An amount, if any, equal to the
portion of Series Finance Charge Amounts for the Note Issuance Trust that are to be reallocated to
the Group Interchange Reallocation Account under step (57) (Reallocation of Series Finance Charge
Amounts to the Master Trust Group One Interchange Reallocation Account) of Section 3.01 of the
Indenture Supplement for the DiscoverSeries (and any comparable step under any other Indenture
Supplement, as applicable) shall be withdrawn from the Series Distribution Account and deposited
into the Group Interchange Reallocation Account.

(6) Reallocation from Group Finance Charge Collections Reallocation Account for Class A
Required Amount Shortfall. An amount equal to the lesser of

	 	(x)	 	the Class A Required Amount Shortfall and

13

 

	 	(y)	 	the product of

	 	(1)	 	a fraction the numerator of which
is the Class A Required Amount Shortfall for this Series and the
denominator of which is the sum of the Class A Required Amount
Shortfalls for this Series and for all Classes designated as
Class A of all other 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 (6)) 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 A Required Amount Shortfall shall be reduced by
the amount of such deposit.

(7) Reallocation from Group Finance Charge Collections Reallocation Account for Class A
Cumulative Investor Charged-Off Amount. An amount equal to the lesser of

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

	 	(1)	 	a fraction the numerator of which
is the Class A Cumulative Investor Charged-Off Amount and the
denominator of which is the sum of the Class A Cumulative
Investor Charged-Off Amounts for this Series and for all Classes
designated as Class A of all other 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 (7)) 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 A Cumulative Investor Charged-Off Amount shall be
reduced by the amount of such deposit.

(8) Reallocation from Group Finance Charge Collections Reallocation Account for other
Series. After the allocations set forth in clauses (6) and (7) are made, then (i) if there
are one or more Subordinate Classes with respect to any other series in the Group to which
the Series established hereby belongs, the allocations set forth in other Series

14

 

Supplements which are substantially similar to clauses (6) and (7) shall be made with respect to each
other such Class, in alphabetical order, to the extent that funds are available pursuant to
this clause (8) and (ii) following the allocations set forth in clause (i), any other
allocations set forth in other Series Supplements with respect to funds on deposit in the
Group Finance Charge Collections Reallocation Account shall be made in accordance with such
Series Supplements, to the extent that funds are available pursuant to this clause (8).

(9) Reallocation from Group Interchange Reallocation Account for Class A Required Amount
Shortfall. An amount equal to the lesser of

	 	(x)	 	the Class A Required Amount Shortfall and
	 
	 	(y)	 	the product of

	 	(1)	 	a fraction the numerator of which
is the Class A Required Amount Shortfall and the denominator of
which is the sum of the Class A Required Amount Shortfalls for
this Series and for all Classes designated as Class A of all
other Interchange 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 (9)) and
	 
	 	(2)	 	the amount on deposit in the
Group Interchange 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 Interchange Reallocation Account and deposited into the Series
Distribution Account. The Class A Required Amount Shortfall shall be reduced by the amount of such
deposit.

(10) Reallocation from Group Interchange Reallocation Account for Class A Cumulative
Charge-Off Amount. An amount equal to the lesser of

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

	 	(1)	 	a fraction the numerator of which
is the Class A Cumulative Investor Charged-Off Amount and the
denominator of which is the sum of the Class A Cumulative
Investor Charged-Off Amounts for this Series and for all Classes
designated as Class A of all other Interchange 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 (10))
and

15

 

	 	(2)	 	the amount on deposit in the
Group Interchange 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 Interchange Reallocation Account and deposited into the Series
Distribution Account. The Class A Cumulative Investor Charged-Off Amount shall be reduced by the
amount of such deposit.

(11) Reallocation from Group Interchange Reallocation Account for other Series After the
allocations set forth in clauses (9) and (10) are made, then (i) if there are one or more
Subordinate Classes with respect to any other series in the Group to which the Series
established hereby belongs, the allocations set forth in other Series Supplements which are
substantially similar to the allocations set forth in clauses (9) and (10) shall be made
with respect to each other such Class, in alphabetical order, to the extent that funds are
available pursuant to this clause (11) and (ii) following the allocations set forth in
clause (i), any other allocations set forth in other Series Supplements with respect to
funds on deposit in the Group Interchange Reallocation Account shall be made in accordance
with such Series Supplements, to the extent that funds are available pursuant to this clause
(11).

(12) Investor Servicing Fee from Series Distribution Account after Reallocations from Group
Finance Charge Collections Reallocation Account. An amount equal to the lesser of

	 	(x)	 	the Investor Servicing Fee Shortfall after step
(3) and
	 
	 	(y)	 	the portion of the Series Servicing Fee payable
to the Master Servicer under step 14 (Series Servicing Fee from
Reallocated Finance Charge Amounts) of Section 3.01 of the Indenture
Supplement for the DiscoverSeries (and any comparable step under any
other Indenture Supplement, as applicable)

shall be withdrawn from the Series Distribution Account and paid to the Master Servicer. The
Investor Servicing Fee Shortfall shall be reduced by the amount of such payment.

(13) Reallocation from Subordinated Notes Principal for Investor Servicing Fee Shortfall. An
amount equal to the lesser of

	 	(x)	 	the Investor Servicing Fee Shortfall after step
(12) and
	 
	 	(y)	 	the portion of the Series Servicing Fee payable
to the Master Servicer under each of steps (41) (Series Servicing Fee
Shortfall from Class D Principal), (42) (Series Servicing Fee Shortfall
from Class C Principal) and (43) (Series Servicing Fee Shortfall from
Class B Principal), as applicable, of Section 3.01 of the Indenture
Supplement for the DiscoverSeries (and any comparable steps under any
other Indenture Supplement, as applicable)

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

16

 

(14) Reallocation to Group Principal Collections Reallocation Account. An amount equal to
the portion of Series Principal Amounts for the Note Issuance Trust that are to be
reallocated to the Group Principal Collections Reallocation Account under step (79)
(Reallocation of Series Principal Amounts to the Master Trust Group One Principal
Collections Reallocation Account) of Section 3.01 of the Indenture Supplement for the
DiscoverSeries (and any comparable step under any other Indenture Supplement, as applicable)
shall be withdrawn from the Series Distribution Account and deposited into the Group
Principal Collections Reallocation Account.

(15) Reallocation from Group Principal Collections Reallocation Account for Class A
Principal Distribution Amount Shortfall. An amount equal to the lesser of

	 	(x)	 	the Class A Principal Distribution Amount Shortfall and
	 
	 	(y)	 	the product of

	 	(1)	 	a fraction the numerator of which is the Class
A Principal Distribution Amount Shortfall and the denominator of which
is the sum of the Class A Principal Distribution Amount Shortfall for
this Series and the portions of the Principal Distribution Amount
Shortfalls allocable to all Class A certificates of all other 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
(15)) and
	 
	 	(2)	 	the amount on deposit in the Group Principal
Collections Reallocation Account before any withdrawals therefrom with
respect to any other series

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

(16) Group Principal Collections Reallocation Account for other Series. After the
allocations set forth in clause (15) are made, then (i) if there are one or more Subordinate
Classes with respect to any other series in the Group to which the Series established
hereby belongs, the allocations set forth in other Series Supplements which are
substantially similar to clause (15) shall be made with respect to each other such Class, in
alphabetical order and (ii) following the allocations set forth in clause (i), any other
allocations set forth in other Series Supplements with respect to funds on deposit in the
Group Principal Collections Reallocation Account shall be made in accordance with such
Series Supplements.

(17) Reallocation from Group Principal Collections Reallocation Account for Unscheduled
Principal Distribution Amount Shortfall. An amount equal to the lesser of

	 	(x)	 	the Unscheduled Principal Distribution Amount Shortfall and

17

 

	 	(y)	 	the product of

	 	(1)	 	a fraction the numerator of which is the
Unscheduled Principal Distribution Amount Shortfall and the denominator
of which is the sum of the Unscheduled Principal Distribution Amount
Shortfall for this Series and any other 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 (17)), and
	 
	 	(2)	 	the amount on deposit in the Group Principal
Collections Reallocation Account before any withdrawals therefrom with
respect to any other series

shall be withdrawn from the Group Principal Collections Reallocation Account and deposited into the
Series Distribution Account.

(18) 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.

(19) An amount equal to the portion of Series Principal Amounts for the Note Issuance Trust
that are to be deposited into the Collections Account pursuant to step (80) (Remaining
Series Principal Amounts to Collections Account for Master Trust for Reinvestment in New
Receivables) of Section 3.01 of the Indenture Supplement for the DiscoverSeries (and any
comparable step under any other Indenture Supplement, as applicable) shall be withdrawn from
the Series Distribution Account and deposited into the Collections Account.

(20) All remaining amounts in the Series Distribution Account shall be paid to the Indenture
Trustee for application in accordance with the Indenture and each applicable Indenture
Supplement.

(21) 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 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. Servicing Compensation. As compensation for its servicing activities hereunder and under the Pooling and Servicing
Agreement and reimbursement of its expenses as

18

 

set forth in Section 3.03 of the Pooling and
Servicing Agreement, the Master Servicer shall be entitled to receive the Investor Servicing Fees
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. The Investor Servicing Fees shall be paid to the Master Servicer on each
Distribution Date pursuant to the terms hereof and the Indenture and each applicable Indenture
Supplement.

     SECTION 11. Investor Certificateholders’ Monthly Statement. On each Statement Date, a statement substantially in the form of Exhibit B as prepared by
the Trustee (based on information provided by the Master Servicer) setting forth the information
listed thereon shall be available to the Investor Certificateholder and to any holder of Notes from
the Trustee, each Paying Agent and, if applicable, the Listing Agent.

     SECTION 12. Purchase of Notes; Sales of Receivables.

          (a) The Indenture Supplement for the DiscoverSeries and any additional Indenture Supplement
issued with respect to any Notes may provide that if, as of any Distribution Date (after giving
effect to any payments calculated pursuant to Section 3.01 of the applicable indenture supplement
made on such Distribution Date), the Outstanding Dollar Principal Amount with respect to any
series, class or Tranche of Notes is less than or equal to 5% of the Initial Principal Dollar
Amount of each corresponding Tranche or Tranches of Notes, the Note Issuance Trust may elect to
repurchase such series, class or Tranche of Notes. In the event of such election, the Calculation
Agent shall request that Discover Bank, on behalf of the Holder of the Seller Certificate, purchase
and cancel a portion of the Series Investor Interest equal to the product of (x) the Nominal
Liquidation Amount of such series, class or Tranche of Notes and (y) the Series 2007-CC Collateral
Certificate Percentage (such portion, the “Clean-Up Call Amount”) by depositing into the Series
Distribution Account, on the immediately succeeding Distribution Date, an amount equal to the
Clean-Up Call Amount. If Discover Bank on behalf of the Holder of the Seller Certificate deposits
the Clean-Up Call Amount into the Series Distribution Account, the Master Servicer shall direct the
Trustee in writing to withdraw the Clean-Up Call Amount from the Series Distribution Account and pay such amount to the Indenture
Trustee for distribution in accordance with the applicable Indenture Supplement.

          (b) If there has been an Event of Default and acceleration of any Tranche of Notes under the
Indenture, and the Indenture Trustee is directed to cause the sale of Receivables in accordance
with Section 705 of the Indenture and the provisions of the applicable Indenture Supplement, or if
the applicable Indenture Supplement otherwise authorizes the Indenture Trustee (in its discretion)
to cause a sale and any conditions precedent thereto have been satisfied, the Indenture Trustee
shall notify the Trustee of the amount of Receivables to be sold, which shall equal the Nominal
Liquidation Amount of each affected Tranche plus accrued interest thereon multiplied by the Series
2007-CC Collateral Certificate Percentage (the “Receivables Sale Amount”). Receivables (or
interests therein) in an amount equal to the Receivables Sale Amount shall be sold on behalf of the
Trust by an institution acceptable to the Trustee, the Indenture Trustee and the Master Servicer
that is either (i) a nationally recognized investment bank, (ii) a nationally recognized commercial
bank or (iii) any other institution whose regular business includes the sale of receivables similar
to the Receivables in the Trust; provided, however, that in no event shall the amount of
Receivables sold hereunder with respect to any Tranche exceed the product of (A) the aggregate
amount of Receivables in the Trust and (B) a fraction the numerator of which is the product of the
Nominal Liquidation Amount of such

19

 

Tranche and the Series 2007-CC Collateral Certificate
Percentage, and the denominator of which is the Aggregate Investor Interest, in each case, on the
Distribution Date in the month immediately preceding the month in which such Receivables sale
occurs; and provided, further, the Receivables selected to be sold hereunder shall not be
materially different from the Receivables remaining in the Trust as of such Distribution Date and
shall be selected at random from the Receivables. The proceeds (the “Receivables Sale Proceeds”)
therefrom shall be paid to the Trust and immediately deposited into the Series Distribution Account
with respect and paid to the Indenture Trustee immediately following such deposit. Such payment
shall be deemed to be the final distribution with respect to the affected Tranche. No Seller and
no affiliate or agent of any Seller shall be permitted to bid for or purchase Receivables pursuant
to this Section 12(b); provided, however, that an affiliate or agent may act as selling institution
for the sale as specified in the first sentence of this Section 12(b), so long as such affiliate or
agent does not act as principal in connection with such sale.

     SECTION 13. 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 14. 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 15. Governing Law. This Series Supplement and all disputes arising out of or relating to it shall be construed
in accordance with the internal laws of the State of New York, without reference to its conflict of
law provisions that would result in the application of the law of any state other than New
York, and the obligations, rights and remedies of the parties hereunder shall be determined in
accordance with such laws.

     SECTION 16. Intention of Parties. The parties intend the sale, transfer, assignment or conveyance of Receivables, Interchange
and all proceeds thereof in connection herewith to be a sale of financial assets in connection with
a securitization and an absolute transfer for all purposes (other than for federal, state and local
income and franchise tax purposes). The parties intend the sale, transfer, assignment or
conveyance of Receivables in connection herewith to be treated as a sale for accounting purposes.

     SECTION 17. 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.

20

 

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 17 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).

     SECTION 18. Election Under Delaware Asset-Backed Securities Facilitation Act. Without limiting any other provisions of the Pooling and Servicing Agreement or this Series
Supplement, the parties hereto agree that (a) the transactions contemplated hereby constitute a
“securitization transaction” and (b) to the fullest extent permitted under applicable law,
including without limitation, the Asset-Backed Securities Facilitation Act Delaware Code Ann. tit.
6, § 2703A et seq: (1) all right, title and interest to the Receivables, whether now existing or
hereafter acquired, all monies due or to become due with respect thereto, all proceeds of such
Receivables and all Interchange (the “Transferred Assets”), which have been transferred to the
Trust in connection with the securitization transactions contemplated herein, shall be deemed to no
longer be the property, assets or rights of the Seller; (2) the Seller, its creditors or, in any
insolvency proceeding with respect to the Seller or the Seller’s property, a bankruptcy trustee,
receiver, debtor, debtor in possession or similar person, shall have no rights, legal or
equitable, whatsoever to reacquire, reclaim, recover, repudiate, disaffirm, redeem or
recharacterize as property of the Seller any of the Transferred Assets; and (3) in the event of a
bankruptcy, receivership or other insolvency proceeding with respect to the Seller or the Seller’s
property, such Transferred Assets shall not be deemed to be part of the Seller’s property, assets,
rights or estate.

     SECTION 19. Increases to Series Investor Interest. In connection with any issuance of Notes, Discover Bank shall transfer to the Note Issuance
Trust an additional fractional undivided interest in the assets of the Trust as represented by an
increase in the Series Investor Interest for the Series 2007-CC Collateral Certificate from time to
time, subject to the satisfaction of the conditions described below:

     (a) The Calculation Agent shall have notified Discover Bank, as Holder of the Seller
Certificate, of the issuance of such Notes and Discover Bank shall have notified the Calculation
Agent of its intention to transfer to the Note Issuance Trust an additional fractional undivided
interest in the assets of the Trust as represented by an increase in the Series Investor Interest
in an amount equal to the product of (i) the Nominal Liquidation Amount of any Notes to be issued
by the Note Issuance Trust and (ii) the percentage of the Nominal Liquidation Amount of such Notes
to be allocated to the Series 2007-CC Collateral Certificate, as determined by Discover Bank as
beneficiary of the Note Issuance Trust;

     (b) Discover Bank, as Holder of the Seller Certificate, shall have received an amount equal to
(i) the issuance proceeds received by the Note Issuance Trust in connection with the corresponding
issuance of Notes, multiplied by the percentage of the Nominal Liquidation Amount of such Notes to
be allocated to the Series 2007-CC Collateral Certificate, minus (ii) the sum of (x) any issuance
expenses relating to such notes multiplied by the percentage of the Nominal Liquidation Amount of
such Notes to be allocated to the Series 2007-CC Collateral Certificate and (y) any amounts
required to be retained in any reserve account or subaccount for the Note Issuance Trust in
connection with such issuance of Notes, multiplied by the percentage

21

 

of the Nominal Liquidation Amount of such Notes to be allocated to the Series 2007-CC Collateral Certificate;

     (c) Discover Bank, as Holder of the Seller Certificate, shall have notified the Trustee, in
writing, at least one business day in advance of the date upon which the Series Investor Interest
is to be increased, which notice shall state the amount of such increase in the Series Investor
Interest;

     (d) The Sellers shall have delivered to the Trustee written confirmation from the Rating
Agencies that they will not, as a result of the increase, change the rating of any Class of any
Series outstanding at the time of the increase; and

     (e) Discover Bank, on behalf of the holder of the Seller Certificate, shall not be required to
designate Additional Accounts or convey a Participation interest to the Trust pursuant to Section
2.10(a) of the Pooling and Servicing Agreement as a result of such increase.

          Upon any increase in the Series Investor Interest the Trustee shall make appropriate entries
in the certificate registrar for the Series 2007-CC Collateral Certificate in the amount of the
increase.

22

 

IN WITNESS WHEREOF, the Seller, the Master Servicer, the Servicer 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
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	Michael F. Rickert
	 	 	 	 	Vice President, Chief Financial Officer and
	 	 	 	 	Treasurer
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	U.S. BANK NATIONAL ASSOCIATION,
	 	 	 	 	  as Trustee
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	Patricia M. Child
	 	 	 	 	Vice President

23

 

EXHIBIT A

Form of Series 2007-CC Investor Certificate

 

 

EXHIBIT B

Form of Investor Certificateholders’ Monthly Statement

Discover Card Master Trust I

Series 2007-CC Monthly Statementexv4w5

 

Exhibit
4.5

 

DISCOVER CARD EXECUTION NOTE TRUST

TRUST AGREEMENT

Dated as of ___, 2007

between

DISCOVER BANK,

as Beneficiary and

WILMINGTON TRUST COMPANY,

as Owner Trustee

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Generic Terms
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II. ORGANIZATION; DECLARATION OF TRUST BY THE OWNER TRUSTEE
	 	 	5	 
	 
	 	 	 	 
	Section 2.01 Formation of Trust; Name
	 	 	5	 
	Section 2.02 Transfer of Property to Trust; Initial Capital Contribution of Trust Estate
	 	 	5	 
	Section 2.03 Purposes and Powers; Trust To Operate as a Limited Purpose Entity
	 	 	5	 
	Section 2.04 Appointment of Owner Trustee
	 	 	8	 
	Section 2.05 Declaration of Trust
	 	 	8	 
	Section 2.06 Title to Trust Estate
	 	 	8	 
	Section 2.07 Nature of Interest in the Trust Estate
	 	 	8	 
	Section 2.08 Continuation of Trust; Principal Office of Owner Trustee
	 	 	8	 
	Section 2.09 Tax Matters
	 	 	8	 
	Section 2.10 Fiscal Year
	 	 	9	 
	Section 2.11 Closing
	 	 	9	 
	Section 2.12 Books and Records
	 	 	9	 
	Section 2.13 Limitation on Liability of Sellers and Others
	 	 	9	 
	 
	 	 	 	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES OF THE BENEFICIARY
	 	 	9	 
	 
	 	 	 	 
	Section 3.01 Representations and Warranties of the Beneficiary
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV. DISTRIBUTIONS OF FUNDS
	 	 	10	 
	 
	 	 	 	 
	Section 4.01 Distribution of Funds
	 	 	10	 
	Section 4.02 Payments from Trust Estate Only
	 	 	10	 
	Section 4.03 Method of Payment
	 	 	10	 
	Section 4.04 Establishment of Account
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V. DUTIES OF THE OWNER TRUSTEE
	 	 	11	 
	 
	 	 	 	 
	Section 5.01 Action Upon Instructions
	 	 	11	 
	Section 5.02 No Duty to Act Under Certain Circumstances
	 	 	12	 
	Section 5.03 No Duties Except Under Specified Agreements or Instructions
	 	 	12	 
	Section 5.04 Trust Operation
	 	 	13	 
	Section 5.05 Execution of Documents
	 	 	14	 

i 

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	ARTICLE VI. CONCERNING THE TRUSTEE BANK
	 	 	14	 
	 
	 	 	 	 
	Section 6.01 Acceptance of Trust and Duties
	 	 	14	 
	Section 6.02 Furnishing of Documents
	 	 	15	 
	Section 6.03 No Representations and Warranties as to the Trust Estate
	 	 	16	 
	Section 6.04 Signature of Periodic Filings and Other Documents
	 	 	16	 
	Section 6.05 Reliance; Advice of Counsel
	 	 	16	 
	Section 6.06 Not Acting in Individual Capacity
	 	 	16	 
	Section 6.07 Representations and Warranties
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VII. TERMINATION OF TRUST AGREEMENT
	 	 	17	 
	 
	 	 	 	 
	Section 7.01 Termination of Trust Agreement
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VIII. SUCCESSOR OWNER TRUSTEES, CO-TRUSTEES AND SEPARATE OWNER TRUSTEES
	 	 	18	 
	 
	 	 	 	 
	Section 8.01 Resignation and Removal of the Owner Trustee; Appointment of Successors
	 	 	18	 
	Section 8.02 Transfer Procedures
	 	 	18	 
	Section 8.03 Qualification of Owner Trustee
	 	 	18	 
	Section 8.04 Co-trustees and Separate Owner Trustees
	 	 	18	 
	 
	 	 	 	 
	ARTICLE IX. AMENDMENTS
	 	 	19	 
	 
	 	 	 	 
	Section 9.01 Amendments
	 	 	19	 
	 
	 	 	 	 
	ARTICLE X. BENEFICIAL INTERESTS AND CERTIFICATES
	 	 	20	 
	 
	 	 	 	 
	Section 10.01 Issuance of Trust Certificates
	 	 	20	 
	Section 10.02 Beneficial Interest; Prohibitions on Transfer
	 	 	20	 
	Section 10.03 Lost or Destroyed Trust Certificate
	 	 	21	 
	 
	 	 	 	 
	ARTICLE XI. COMPENSATION OF TRUSTEE BANK AND INDEMNIFICATION
	 	 	22	 
	 
	 	 	 	 
	Section 11.01 Trustee Bank Fees and Expenses
	 	 	22	 
	Section 11.02 Indemnification
	 	 	22	 
	 
	 	 	 	 
	ARTICLE XII. MISCELLANEOUS
	 	 	23	 
	 
	 	 	 	 
	Section 12.01 Conveyance by the Owner Trustee is Binding
	 	 	23	 
	Section 12.02 Instructions; Notices
	 	 	23	 
	Section 12.03 Severability
	 	 	23	 

ii 

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	Section 12.04 Limitation of Liability
	 	 	24	 
	Section 12.05 Separate Counterparts
	 	 	24	 
	Section 12.06 Successors and Assigns
	 	 	24	 
	Section 12.07 Headings
	 	 	24	 
	Section 12.08 Governing Law
	 	 	24	 
	Section 12.09 Nonpetition Covenants
	 	 	24	 
	Section 12.10 No Recourse
	 	 	25	 
	Section 12.11 Acceptance of Terms of Agreement
	 	 	25	 
	Section 12.12 Acknowledgement and Acceptance of Indenture
	 	 	25	 
	 
	 	 	 	 
	ARTICLE XIII. COMPLIANCE WITH REGULATION AB
	 	 	25	 
	 
	 	 	 	 
	Section 13.01 Intent of the Parties; Reasonableness
	 	 	25	 
	Section 13.02 Additional Representations and Warranties of the Trustee Bank
	 	 	26	 
	Section 13.03 Information to Be Provided by the Owner Trustee.
	 	 	26	 

iii 

 

EXHIBITS

	 	 	 	 	 
	EXHIBIT A FORM OF TRUST CERTIFICATE
	 	 	A-1	 
	 
	 	 	 	 
	EXHIBIT B CERTIFICATE OF TRUST OF DISCOVER CARD EXECUTION NOTE TRUST
	 	 	B-1	 
	 
	 	 	 	 
	EXHIBIT C FORM OF TRUSTEE BANK’S LITIGATION CERTIFICATE
	 	 	C-1	 

iv 

 

     TRUST AGREEMENT, dated as of ___, 2007, between DISCOVER BANK, a Delaware banking
corporation, as Beneficiary (“Discover Bank”), and WILMINGTON TRUST COMPANY, a Delaware
banking corporation, as owner trustee (the “Owner Trustee”) for DISCOVER CARD EXECUTION
NOTE TRUST (the “Trust”).

     WHEREAS, the parties desire to form the Trust as a Delaware statutory trust pursuant to the
Delaware Statutory Trust Act;

     NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound hereby, agree as follows:

ARTICLE I.

DEFINITIONS

     Section 1.01 Definitions. For purposes of this Agreement, the following terms have
the following meanings:

     “Affiliate” is defined in the Indenture.

     “Agreement” means this Trust Agreement for the Discover Card Execution Note Trust, as
the same may be amended, restated, amended and restated, supplemented, replaced or otherwise
modified from time to time.

     “Beneficial Interest” means the undivided beneficial interest of the Beneficiary in
the assets of the Trust.

     “Beneficiary” means Discover Bank, as beneficial owner of the Trust, and each
Permitted Affiliate Transferee and other transferee under Section 10.02.

     “Beneficiary Trust Account” means the account established by the Owner Trustee on
behalf of the Trust in accordance with Section 4.04.

     “Business Day” shall mean any day other than a Saturday, Sunday or a day on which
banking institutions in (v) New York, New York, (w) the County of New Castle, Delaware, (x) the
city in which the Corporate Trust Office is located, (y) St. Paul, Minnesota or (z) the city in
which the principal executive offices of any additional Seller with respect to any Master Trust is
located, are not required or permitted by law to be closed.

     “Certificate of Trust” means the Certificate of Trust of the Trust in the form
attached hereto as Exhibit B which will be filed for the Trust pursuant to Section 3810(a)
of the Delaware Statutory Trust Act.

     “Class” means, with respect to any Note, the Class specified in the applicable
Indenture Supplement.

 

 

     “Code” means the Internal Revenue Code of 1986, as it may be amended from time to
time.

     “Corporate Trust Office” is defined in the Indenture.

     “Delaware Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12
Del.C. §§ 3801, et seq., as amended from time to time, and any successor statute
thereto.

     “Deliveries” is defined in Section 12.02.

     “Disqualification Event,” with respect to the Owner Trustee, means (a) the bankruptcy,
insolvency or dissolution of the Owner Trustee, (b) the occurrence of the date of resignation of
the Owner Trustee, as set forth in a notice of resignation given pursuant to Section 8.01,
(c) the delivery to the Owner Trustee of the instrument or instruments of removal referred to in
Section 8.01 (or, if such instruments specify a later effective date of removal, the
occurrence of such later date), or (d) failure of the Owner Trustee to qualify under the
requirements of Section 8.03.

     “Fitch” is defined in the Indenture.

     “Governmental Authority” means the United States of America, any state or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

     “Indemnified Person” is defined in Section 11.02.

     “Indenture” means the Indenture dated as of ___, 2007 between the Trust and the
Indenture Trustee, as the same may be amended, restated, amended and restated, supplemented,
replaced or otherwise modified from time to time.

     “Indenture Supplement” is defined in the Indenture.

     “Indenture Trustee” means U.S. Bank National Association, not in its individual
capacity but solely as Indenture Trustee under the Indenture, and each successor Indenture Trustee
under such Indenture, or such other party identified as the Indenture Trustee within the Indenture.

     “Issuer Certificate” is defined in the Indenture.

     “Issuer Tax Opinion” is defined in the Indenture.

     “Master Trust” is defined in the Indenture.

     “Master Trust Tax Opinion” is defined in the Indenture.

     “Master Trust Trustee” means the trustee under the applicable Pooling and Servicing
Agreement and each successor trustee under such Pooling and Servicing Agreement.

     “Material Adverse Effect” means, whenever used in this Agreement with respect to any
Series, Class or Tranche of Notes with respect to any action, that such action will (a) at the time
of its occurrence or at any future date result in the occurrence of an Early Redemption Event or

2

 

Event of Default (each as defined in the Indenture) relating to such Series, Class or Tranche
of Notes, as applicable, (b) materially adversely affect the amount of funds available to be
distributed to the Noteholders of any such Series, Class or Tranche of Notes pursuant to the
Indenture or the timing of such distributions, or (c) materially adversely affect the security
interest of the Indenture Trustee in the collateral securing the Notes.

     “Moody’s” is defined in the Indenture.

     “Note” is defined in the Indenture.

     “Noteholder” is defined in the Indenture.

     “Note Rating Agency” is defined in the Indenture.

     “Outstanding Dollar Principal Amount” is defined in the Indenture.

     “Owner Trustee” means Wilmington Trust Company, not in its individual capacity but
solely as owner trustee under this Agreement (unless otherwise specified herein), and each
successor trustee under Article VIII, in its capacity as owner trustee hereunder, and each
co-trustee under and to the extent provided in Section 8.04, in its capacity as owner
trustee hereunder.

     “Payment Date” is defined in the Indenture.

     “Person” means any individual, corporation, partnership (general or limited), limited
liability company, joint venture, association, joint-stock company, trust, unincorporated
organization, governmental entity or other entity of similar nature.

     “Periodic Filing” means any filing or submission that the Trust is required to make
with any federal, state or local authority or regulatory agency.

     “Permitted Affiliate Transferee” is defined in Section 10.02.

     “Pooling and Servicing Agreement” means a pooling and servicing agreement, indenture
or other agreement for the issuance of securities from time to time from a Master Trust and the
servicing of the receivables in such Master Trust, as such agreement may be amended, restated,
amended and restated, supplemented, replaced or otherwise modified from time to time.

     “Regulation AB” means Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such
clarification and interpretation as have been provided by the Commission in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7,
2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from
time to time.

     “Secretary of State” means the Office of the Secretary of State of the State of
Delaware.

     “Securities Act” means the Securities Act of 1933, as amended.

3

 

     “Securitization Transaction” means any transaction involving a new issuance of notes
pursuant to the Indenture, whether publicly offered or privately placed, rated or unrated.

     “Seller” means Discover Bank and its successors and assigns, and any other Seller
designated in any applicable Pooling and Servicing Agreement or other applicable transfer or
pooling agreement.

     “Series” means, with respect to any Note, the Series specified in the applicable
Indenture Supplement.

     “Standard & Poor’s” is defined in the Indenture.

     “Terms Document” is defined in the Indenture.

     “Tranche” means, with respect to any Class of Notes, Notes of such Class which have
identical terms, conditions and Tranche designation. Notes of a single Tranche may be issued on
different dates.

     “Transaction Documents” means the Indenture, any Indenture Supplement thereto, any
Terms Document thereto, the Trust Certificate, the Certificate of Trust and other documents
delivered in connection herewith and therewith.

     “Trust” means the statutory trust created by this Agreement and the filing of the
Certificate of Trust with the Secretary of State and continued hereby.

     “Trust Certificate” is defined in Section 10.01.

     “Trust Estate” is defined in Section 2.05.

     “Trustee Bank” means Wilmington Trust Company in its individual capacity, each bank
appointed as successor Owner Trustee under Article VIII in its individual capacity and each
bank appointed as co-trustee under and to the extent provided in Section 8.04 in its
individual capacity.

     “UCC” means the Uniform Commercial Code as in effect in the State of Delaware and any
other applicable jurisdiction.

     Section 1.02 Generic Terms.

     (a) The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any similar terms will
refer to this Agreement.

     (b) Unless otherwise indicated in context, the terms “Section,” “Exhibit” or “Schedule” will
refer to a Section of, or an Exhibit or Schedule to, this Agreement.

     (c) Words of the masculine, feminine or neuter gender mean and include the correlative words
of other genders, and words importing the singular number mean and include the plural number and
vice versa.

4

 

     (d) The terms “include,” “including” and similar terms will be construed as if followed by the
phrase “without limitation.”

     (e) All terms defined in this Agreement will have the defined meanings when used in any
certificate or other document made or delivered pursuant hereto or in connection herewith unless
otherwise defined therein.

     (f) Any agreement, instrument or statute defined or referred to herein or in any certificate
or other document made or delivered pursuant hereto or in connection herewith means such agreement,
instrument or statute as from time to time amended, modified or supplemented and includes (in the
case of agreements or instruments) references to all attachments thereto and instruments
incorporated therein; references to a Person are also to its permitted successors and assigns.

ARTICLE II.

ORGANIZATION;

DECLARATION OF TRUST BY THE OWNER TRUSTEE

     Section 2.01 Formation of Trust; Name. The Trust is hereby formed, and is hereby
named “Discover Card Execution Note Trust”, under which name the Owner Trustee or the Beneficiary
may conduct any activities and business of the Trust contemplated hereby, execute contracts and
other instruments on behalf of the Trust and sue and be sued on behalf of the Trust.

     Section 2.02 Transfer of Property to Trust; Initial Capital Contribution of Trust
Estate. The Beneficiary hereby assigns, grants and transfers, over to the Owner Trustee, as of
the date hereof, $1.00. The Owner Trustee hereby acknowledges receipt in trust from the
Beneficiary, as of the date hereof, of the foregoing contribution, which constitutes the initial
Trust Estate.

     Section 2.03 Purposes and Powers; Trust To Operate as a Limited Purpose Entity.

     (a) The purpose of the Trust is to engage solely in a program of receiving transfers of assets
comprising the Trust Estate, owning the Trust Estate, issuing Notes under the Indenture and related
activities. Without limiting the generality of the foregoing, the Trust may and shall have the
power and authority to:

          (i) accept transfers of any assets comprising all or a portion of the Trust Estate and hold
the Trust Estate;

          (ii) from time to time, in connection with its issuance of Notes, to enter into the Indenture,
any Indenture Supplement thereto, and any Terms Document thereto, and to grant a security interest
in the Trust Estate and grant a security interest in collateral accounts, collections accounts,
funding accounts, reserve accounts, payment accounts and other trust accounts established under the
Indenture, in each case consistent with the direction of the Beneficiary;

          (iii) from time to time authorize and approve the issuance of, and issue, Series, Classes or
Tranches of Notes pursuant to the Indenture without limitation to aggregate amounts,

5

 

the terms of
which shall be determined by the Beneficiary, together with any registration statements,
underwriting or similar agreements, prospectuses, offering memoranda or other documents necessary
to permit the offering and sale of such notes on terms and conditions approved by the Beneficiary
or the qualification of the Indenture under applicable law;

          (iv) from time to time receive payments and proceeds with respect to the Trust Estate and the
Indenture and either invest or distribute those payments and proceeds, in each case as required by
the terms of this Agreement and the Indenture;

          (v) from time to time make deposits to and withdrawals from collateral accounts, collections
accounts, funding accounts, reserve accounts, payment accounts and other trust accounts established
under the Indenture;

          (vi) from time to time make and receive payments pursuant to derivative agreements,
supplemental credit enhancement agreements and supplemental liquidity agreements;

          (vii) from time to time make payments on the Notes;

          (viii) from time to time accept transfers of additional collateral to be included in the Trust
Estate;

          (ix) from time to time perform such obligations and exercise and enforce such rights and
pursue such remedies as may be appropriate by virtue of the Trust being party to any of the
agreements contemplated in clauses (i) through (viii) above;

          (x) execute, deliver and perform the Transaction Documents and all other documents,
certificates and agreements necessary or incidental in connection therewith (including, without
limitation, the documents listed in Section 2.03(b));

          (xi) issue the Trust Certificate to the Beneficiary in accordance with Section 10.01;
and

          (xii) subject to compliance with the Transaction Documents, engage in such other related
activities as may be required or convenient in connection with conservation of the Trust Estate and
the making of payments to the Noteholders and distributions to the Beneficiary.

In connection with any of the foregoing, the Trust may (x) execute and deliver, and/or accept, such
instruments, agreements, certificates, UCC financing statements and other documents, and
create such security interests, as may be necessary or desirable in connection therewith, and (y)
subject to the terms of this Agreement, take such other action as may be necessary or incidental to
the foregoing.

     (b) The Trust, and each of the Beneficiary, on behalf of the Trust, and the Owner Trustee, on
behalf of the Trust, are hereby authorized and shall have the power to execute and deliver from
time to time loan agreements, underwriting agreements, terms agreements, selling agent agreements,
purchase agreements, private placement agreements, dealer agreements, issuing and paying agency
agreements, swap and other derivative agreements, including

6

 

performance agreements, indentures,
indenture supplements, liquidity facilities, terms documents, notes, security agreements, and other
agreements and instruments as are consistent with the purposes of the Trust. Without limiting the
generality of the foregoing, the Trust, and each of the Beneficiary, on behalf of the Trust, and
the Owner Trustee, on behalf of the Trust, are specifically authorized to execute and deliver
without any further act, vote or approval, and notwithstanding any other provision of this
Agreement, the Delaware Statutory Trust Act or other applicable law, rule or regulation,
agreements, documents or securities relating to the purposes of the Trust including:

          (i) Transaction Documents and each Issuer Certificate;

          (ii) the Notes;

          (iii) each interest rate, basis or currency swap, cap, collar, guaranteed investment contract
or other derivative agreement, including agreements related thereto, between the Trust and a
counterparty to manage interest rate or currency risk relating to the Notes;

          (iv) the Trust Certificate;

          (v) any documents relating to listing securities on the Luxembourg Stock Exchange, the Irish
Stock Exchange or another applicable exchange; and

          (vi) any other document necessary or desirable in connection with the fulfillment of the
purposes of the Trust described in, and pursuant to, Section 2.03(a).

     The authorization set forth in the preceding sentence will not be deemed a restriction on the
power and authority of the Beneficiary and the Owner Trustee, on behalf of the Trust, to execute
and deliver other agreements, documents, instruments and securities or to take other actions on
behalf of the Trust in connection with the fulfillment of the purposes of the Trust described in,
and pursuant to, Section 2.03(a).

     (c) Each of the Beneficiary, on behalf of the Trust, and the Owner Trustee, at the written
direction of the Beneficiary and on behalf of the Trust, is hereby authorized and shall have the
power to execute and file any Periodic Filings on behalf of the Trust.

     (d) Each of the Owner Trustee and the Beneficiary is authorized to appoint calculation agents,
notification agents and other agents (which may be the Beneficiary, the Owner Trustee, the
Indenture Trustee or any affiliate thereof) to notify any Master Trust servicer or trustee of
issuances of notes, increases in any collateral certificate, and amounts due under or
to be reallocated from or to the Notes, and to make any other determinations with respect to
the application of funds under any indenture.

     (e) Each
of the Owner Trustee or the Beneficiary will at all times maintain any books, records and accounts of the Trust
separate and apart from those of any other Person, and each of the Beneficiary and the Owner Trustee
will cause the Trust to hold itself out as being a Person separate and apart from any other Person.

7

 

     (f) The Trust will not engage in any business or own any assets unrelated to the purposes of
the Trust.

     Section 2.04 Appointment of Owner Trustee. The Beneficiary hereby appoints Wilmington
Trust Company as Owner Trustee of the Trust effective as of the date hereof, to have all the
rights, powers and duties set forth herein and, to the extent not inconsistent with this Agreement,
in the Delaware Statutory Trust Act.

     Section 2.05 Declaration of Trust. The Owner Trustee hereby declares that it will
hold the contribution described in Section 2.02, and the other documents and assets
described in Section 2.03, together with any payments, proceeds or income of any kind from
such documents or assets or any other source and any other property transferred, assigned, set
over, pledged or otherwise conveyed to, and held by, the Trust pursuant to this Agreement or the
Indenture (collectively, the “Trust Estate”), upon the trust set forth herein and for the
sole use and benefit of the Beneficiary. It is the intention of the parties hereto that the Trust
constitute a statutory trust under the Delaware Statutory Trust Act and that this Agreement
constitute the governing instrument of such statutory trust. The parties hereto agree that they
will take no action contrary to the foregoing intention. Effective as of the date hereof, the
Owner Trustee shall have all rights, powers and duties set forth herein and, to the extent not
inconsistent herewith, in the Delaware Statutory Trust Act with respect to accomplishing the
purposes of the Trust.

     Section 2.06 Title to Trust Estate. Title to all of the Trust Estate will be vested
in the Trust as a separate legal entity until this Agreement terminates pursuant to Article
VII; provided, however, that if the laws of any jurisdiction require that title
to any part of the Trust Estate be vested in the trustees of a trust, then title to that part of
the Trust Estate will be deemed to be vested in the Owner Trustee or any co-trustee or separate
trustee, as the case may be, appointed pursuant to Article VIII.

     Section 2.07 Nature of Interest in the Trust Estate. The Beneficiary will not have
any legal title to or right to possession of any part of the Trust Estate.

     Section 2.08 Continuation of Trust; Principal Office of Owner Trustee. The Owner Trustee will file
the Certificate of Trust with the Secretary of State and will
maintain the Owner Trustee’s principal office in the State of Delaware. Nothing herein, however,
shall restrict or prohibit the Owner Trustee from having employees within or without the State of
Delaware. Payments will be received by the Trust only in Delaware or New York and payments will be
made by the Trust only from Delaware or New York, unless otherwise specified with respect to any
Collateral Certificates or Notes in the related Indenture Supplement or Terms Document. The Trust
will be located in Delaware and administered in Delaware and New York.

     Section 2.09 Tax Matters. The parties hereto intend that, for income and franchise
tax purposes, the Trust will be treated as a security device and disregarded as an entity and its
assets shall be treated as owned in whole by the Beneficiary, and the parties hereto will file all
their tax returns in a manner consistent with that intent unless otherwise required by a taxing
authority. Except as otherwise expressly provided herein, any tax elections required or permitted
to be made by the Trust under the Code or otherwise will be made by the Beneficiary. The Trust
will not elect to be treated as a corporation for any tax purpose.

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     Section 2.10 Fiscal Year. The fiscal year of the Trust will end on the last day of
November of each year.

     Section 2.11 Closing. The transfer, assignment, set-over, pledge and conveyance of
the Trust Estate and the initial issuance of Notes will take place on ___, 2007 at the offices
of Latham & Watkins LLP, Sears Tower Suite 5800, 233 S. Wacker, Chicago, IL 60606.

     Section 2.12 Books and Records. The Beneficiary agrees to record and file, at its own
expense, any financing statements (and amendments with respect to such financing statements when
applicable) required to be filed with respect to the Trust Estate assigned by the Beneficiary
pursuant to this Agreement, meeting the requirements of applicable law in such manner and in such
jurisdictions as are necessary under the applicable UCC to perfect the transfer, assignment,
set-over, pledge and conveyance of the Trust Estate to the Trust, and to deliver a file-stamped
copy of such financing statements or amendments or other evidence of such filings to the Trust
(excluding such amendments, which shall be delivered promptly after filing).

     Section 2.13 Limitation on Liability of Sellers and Others. Any Seller and any
director or officer or employee or agent of such Seller may rely in good faith on the advice of
counsel or on any document of any kind, prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. To the extent permitted by applicable law, any Seller,
in its capacity as such, shall not be under any obligation to appear in, prosecute or defend any
legal action that shall not be incidental to its obligations under this Agreement, and that in its
opinion may involve it in any expense or liability. The
Beneficiary shall be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General Corporation Law of the
State of Delaware.

ARTICLE III.

REPRESENTATIONS AND

WARRANTIES OF THE BENEFICIARY

     Section 3.01 Representations and Warranties of the Beneficiary. The Beneficiary
hereby represents and warrants to the Owner Trustee as of the date of this Agreement and as of each
Additional Date that:

     (a) The Beneficiary has been duly incorporated and is validly existing as a Delaware banking
corporation, and has full corporate power and authority to execute and deliver this Agreement and
any other documents related hereto to which it is a party and to perform the terms and provisions
hereof and thereof.

     (b) The execution, delivery and performance of this Agreement by the Beneficiary and the
consummation by the Beneficiary of the transactions provided for in this Agreement and in the other
Transaction Documents to which the Beneficiary is a party 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 the Beneficiary, and do not and will not conflict with or result in a
breach which would constitute a material default under, any agreement for

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borrowed money binding
upon or applicable to it or such of its property that is material to it, or to the best of the
Beneficiary’s knowledge, any law or governmental regulation or court decree applicable to it or
such material property, and this Agreement and the other Transaction Documents to which the
Beneficiary is a party are the valid, binding and enforceable obligations of the Beneficiary,
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.

     (c) To the best of the knowledge of the Beneficiary, there are no proceedings or
investigations pending against the Beneficiary before any court, regulatory body, administrative
agency, or other tribunal or governmental instrumentality having jurisdiction over the Beneficiary
(i) asserting the invalidity of this Agreement or any of the Transaction Documents, (ii) seeking to
prevent the consummation of any of the transactions contemplated by this Agreement or any of the
Transaction Documents, (iii) seeking any determination or ruling which in the Beneficiary’s
judgment would materially and adversely affect the performance by the Beneficiary of its
obligations under this Agreement or the Transaction Documents, or (iv) seeking any determination or
ruling that would materially and adversely affect the validity or enforceability of this Agreement
or the Transaction Documents.

ARTICLE IV.

DISTRIBUTIONS OF FUNDS

     Section 4.01 Distribution of Funds. All funds received by the Trust to the extent not
encumbered by the Indenture and otherwise available for distribution (or if encumbered by the
Indenture, which have been released by the relevant parties benefiting from such encumbrance) will
be distributed to the Beneficiary.

     Section 4.02 Payments from Trust Estate Only. All payments to be made by the Trust
under this Agreement will be made only from the income and the capital proceeds derived from the
Trust Estate and only to the extent that the Trust will have received income or capital proceeds
from the Trust Estate. The Beneficiary agrees that it will look solely to the income and capital
proceeds derived from the Trust Estate (to the extent available for payment as herein provided) and
that, except as specifically provided herein, the Owner Trustee will not be subject to any
liability in its individual capacity under this Agreement to the Beneficiary or to any other
Person.

     Section 4.03 Method of Payment. All amounts payable to the Beneficiary pursuant to
this Agreement will be paid by the Owner Trustee on behalf of the Trust to the Beneficiary or a
nominee therefor in such manner as the Beneficiary may from time to time designate in written
instructions to the Owner Trustee. All funds received by the Owner Trustee on behalf of the Trust
not later than 2:00 p.m. (New York City time) on a Business Day will be applied by the Owner
Trustee on that Business Day. Funds received after that time will be applied on the next following
Business Day.

     Section 4.04 Establishment of Account. The Beneficiary hereby authorizes the Owner
Trustee to establish and maintain an account in the name and on behalf of the Trust, into which

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all
funds received by the Owner Trustee on behalf of the Trust shall be deposited. Such account shall
be designated the Beneficiary Trust Account.

ARTICLE V.

DUTIES OF THE OWNER TRUSTEE

     Section 5.01 Action Upon Instructions.

     (a) It is the intention of the Beneficiary that the powers and duties of the Owner Trustee are
to be purely ministerial only. Accordingly, subject to Section 5.01(b) and 5.01(c)
the Beneficiary will direct the Owner Trustee in the management of the Trust and the Trust
Estate. Such direction shall be exercised at any time only by written instruction of the
Beneficiary delivered to the Owner Trustee pursuant to this Article V. Notwithstanding any
other provision of this Agreement, the Owner Trustee shall not take any action including but not
limited to the execution of any documents, certificates or other instruments (other than the
Certificate of Trust, the Trust Certificate, the Transaction Documents and any documents,
certificates or other instruments attached thereto or contemplated thereby), unless it receives
written instructions from the Beneficiary.

     (b) The Owner Trustee will take such action or actions as may be specified in any instructions
delivered in accordance with Section 5.01(a); provided, however, that the
Owner Trustee will not be required to take any such action if the Trustee Bank will have been
advised by counsel that such action (i) is contrary to the terms hereof or of any document
contemplated hereby to which the Trust or the Owner Trustee is a party or is otherwise contrary to
law, or (ii) is reasonably likely to result in liability on the part of the Trustee Bank, unless
the Trustee Bank will have received additional indemnification or security satisfactory to the
Trustee Bank from the Beneficiary against all costs, expenses and liabilities arising from the
Owner Trustee’s taking such action.

     (c) The Beneficiary will not direct the Owner Trustee to take or refrain from taking any
action contrary to this Agreement, nor will the Owner Trustee be obligated to follow any such
direction.

     (d) In the event that the Owner Trustee is unsure as to the application of any provision of
this Agreement or any Transaction Document, or such provision is ambiguous as to its application,
or is, or appears to be, in conflict with any other applicable provision, or this Agreement permits
any determination by the Owner Trustee or is silent or is incomplete as to the course of action to
be adopted, the Owner Trustee will promptly give notice to the Beneficiary requesting written
instructions as to the course of action to be adopted and, to the extent the Owner Trustee acts in
good faith in accordance with such written instructions received from the Beneficiary, the Owner
Trustee shall not be liable on account of such action to any Person. If the Owner Trustee will not
have received appropriate written instructions within 30 days of such notice (or within such
shorter period of time as reasonably may be specified in such notice) it may, but shall be under no
duty to, take or refrain from taking such action, not inconsistent with this Agreement, as it deems
to be in the best interests of the Beneficiary, and will have no liability to any Person for such
action or inaction.

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     (e) The Owner Trustee will, subject to this Section 5.01, act in accordance with the
instructions given to it by the Beneficiary pursuant to Section 5.01(a), and to the extent
the Owner Trustee acts in good faith in accordance with such instructions, the Owner Trustee will
not be liable on account of such action to any Person.

     Section 5.02 No Duty to Act Under Certain Circumstances. Notwithstanding anything
contained herein to the contrary, neither the Trustee Bank nor the Owner Trustee, except a Trustee
Bank authorized as co-trustee, will be required to take any action in any jurisdiction other than
in the State of Delaware if the taking of such action
would (i) require the consent or approval or authorization or order of or the giving of notice
to, or the registration with or taking of any action in respect of, any state or other governmental
authority or agency of any jurisdiction other than the State of Delaware; (ii) result in any fee,
tax or governmental charge under the laws of any jurisdiction or any political subdivisions thereof
in existence on the date hereof other than the State of Delaware becoming payable by the Trustee
Bank; or (iii) subject the Trustee Bank to personal jurisdiction in any jurisdiction other than the
State of Delaware for causes of action arising from acts unrelated to the consummation of the
transactions by the Trustee Bank or the Owner Trustee, as the case may be, contemplated hereby.
The Owner Trustee shall be entitled to obtain advice of counsel (which advice shall be at the
reasonable expense of the Beneficiary) to determine whether any action required to be taken
pursuant to this Agreement results in the consequences described in clauses (i), (ii) and (iii) of
the preceding sentence. In the event that said counsel advises the Owner Trustee that such action
will result in such consequences, the Owner Trustee may, or if instructed to do so by the
Beneficiary, shall, appoint an additional trustee pursuant to Section 8.04 hereby to
proceed with such action.

     Section 5.03 No Duties Except Under Specified Agreements or Instructions.

     (a) The Owner Trustee will not have any duty or obligation to manage, control, use, make any
payment in respect of, register, record, insure, inspect, sell, dispose of, create, maintain or
perfect any security interest or title in or otherwise deal with any part of the Trust Estate,
prepare, file or record any document or report (including any tax related filing for any holder of
Notes), or to otherwise take or refrain from taking any action under, or in connection with, this
Agreement, the Trust or any document contemplated hereby to which the Trust or the Owner Trustee is
a party, except as expressly provided by the terms of this Agreement or in written instructions
from the Beneficiary received pursuant to Section 5.01; and no implied duties or
obligations will be read into this Agreement against the Owner Trustee. Unless otherwise directed
by the Beneficiary in accordance with Section 5.01(a), the Owner Trustee shall have no
obligation or duty to take any action the Trust is authorized and empowered to take pursuant to
Section 2.03(a). The Trustee Bank nevertheless agrees that it will, in its individual
capacity and at its own cost and expense, promptly take all action as may be necessary to discharge
any lien, pledge, security interest or other encumbrance on any part of the Trust Estate which
results from actions by or claims against the Trustee Bank not related to the Trust or the Owner
Trustee’s ownership of any part of the Trust Estate.

     (b) The Owner Trustee agrees that it will not manage, control, use, lease, sell, dispose of or
otherwise deal with any part of the Trust Estate except (i) in accordance with the powers granted
to, or the authority conferred upon, the Owner Trustee pursuant to this Agreement, or (ii) in
accordance with the express terms hereof or with written instructions from the Beneficiary

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pursuant
to Section 5.01. Unless otherwise directed by the Beneficiary in accordance with
Section 5.01(a), the Owner Trustee shall not be required to perform any obligations or
duties of the Trust under the Indenture, which duties and obligations shall be the sole
responsibility of the Beneficiary.

     Section 5.04 Trust Operation. The operations of the Trust will be conducted in
accordance with the following standards:

     (a) the Trust will conduct its own affairs in its own name through the Owner Trustee or the
Beneficiary, or any agent appointed by either of them in accordance with this agreement;

     (b) the Trust will not commingle its assets with those of the Beneficiary or any Affiliate or
subsidiary of the Beneficiary;

     (c) the Trust will not own any asset or property other than the Trust Estate;

     (d) the Trust will have its own principal executive and administrative office or space through
which its business is conducted (which, however, may be within the premises of and leased from the
Beneficiary) separate from that of the Beneficiary;

     (e) the Trust will maintain books and records and bank accounts separate from those of any
other person, except as contemplated by the Transaction Documents;

     (f) the Trust will pay its own liabilities out of its own funds;

     (g) the Trust will endeavor to maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its contemplated business
operations;

     (h) the Trust will not incur debt except in connection with the purposes set forth in
Section 2.03 of this Agreement;

     (i) the Trust will maintain an “arms-length relationship” with the Beneficiary;

     (j) the Trust will use telephone numbers separate from those of the Beneficiary;

     (k) the Trust will not pledge its assets for the benefit of any other Person, except as
contemplated under the Indenture;

     (l) the Trust will hold itself out as a separate legal entity and correct any known
misunderstanding regarding its separate identity;

     (m) the Trust will not engage, directly or indirectly, in any business or purposes other than
those set forth in Section 2.03 of this Agreement;

     (n) the Trust will not enter into any transactions with any other Person other than authorized
under or incidental to the Transaction Documents;

13

 

     (o) the Trust will not guarantee or become obligated for the debts of any other Person or hold
out its credit as being available to satisfy the obligations of others;

     (p) the Trust will use stationery through which all business correspondence and communication
are conducted separate from those of the Beneficiary, and any forms of checks used by the Trust or
that will be used by the Trust shall identify the Trust as the payor thereunder.

     Section 5.05 Execution of Documents. The Owner Trustee will, at the written direction
of the Beneficiary, execute and deliver on behalf of the Trust such instruments, agreements and
certificates contemplated hereby to which the Trust is a party (such direction to be conclusively
evidenced by the Owner Trustee’s execution and delivery of such documents to, and acceptance by,
the Beneficiary). The Beneficiary hereby instructs the Owner Trustee to execute, on behalf of the
Trust, the Transaction Documents to which the Trust is a party and any documents, certificates or
other instruments attached thereto or contemplated thereby.

ARTICLE VI.

CONCERNING THE TRUSTEE BANK

     Section 6.01 Acceptance of Trust and Duties. The Trustee Bank accepts the trust
hereby created and agrees to perform the same but only upon the terms of this Agreement. The
Trustee Bank also agrees to disburse all moneys actually received by it constituting part of the
Trust Estate in accordance with the terms of this Agreement. The Trustee Bank will not be
answerable or accountable under any circumstances in its individual capacity, except (i) for its
own willful misconduct, bad faith or gross negligence, (ii) in the case of the inaccuracy of any
representation or warranty contained in Section 6.07, (iii) for the failure by the Owner
Trustee to perform obligations expressly undertaken by it in the last sentence of Section
5.03(a), or (iv) for taxes, fees or other charges on, based on or measured by, any fees,
commissions or other compensation earned by the Trustee Bank for acting as trustee hereunder. In
particular, but not by way of limitation:

     (a) The Trustee Bank will not be personally liable for any error of judgment made in good
faith by an authorized officer of the Owner Trustee so long as the same will not constitute gross
negligence, bad faith or willful misconduct;

     (b) The Trustee Bank will not be personally liable with respect to any action taken or omitted
to be taken by the Owner Trustee in good faith in accordance with the instructions of the
Beneficiary;

     (c) No provision of this Agreement or any Transaction Document will require the Trustee Bank
to expend or risk its personal funds or otherwise incur any financial liability in the performance
of any of its rights or powers hereunder, if the Trustee Bank will have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured or provided to it, including such advances as the Trustee Bank may reasonably
request;

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     (d) Under no circumstance will the Trustee Bank be personally liable for the accuracy or
performance of any representation, warranty, covenant, agreement or other obligation, including any
indebtedness, of the Trust;

     (e) The Trustee Bank will not be personally responsible or liable for or in respect of the
validity or sufficiency of this Agreement or for the due execution hereof by the Beneficiary or
with respect to any agreement entered into by the Trust;

     (f) Under no circumstances will the Trustee Bank be personally responsible or liable for the
action or inaction of the Beneficiary, nor will the Trustee Bank be responsible for monitoring the
performance of the Beneficiary’s duties hereunder or of any other Person acting for or on behalf of
the Trust;

     (g) In no event shall the Trustee Bank be personally liable for special, consequential or
punitive damages unless such damages result from its willful misconduct, bad faith or gross
negligence, for the acts or omissions of its nominees, correspondents, clearing agencies or
securities depositories, for the acts or omissions of brokers or dealers, and for any losses due to
forces beyond the control of the Trustee Bank, including strikes, work stoppages, acts of war or
terrorism, insurrection, revolution, nuclear or natural catastrophes or acts of God and
interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services. The Trustee Bank shall have no responsibility for the accuracy of any
information provided to the Beneficiary or any other Person that has been obtained from, or
provided to the Trustee Bank by, any other Person unless the Trustee Bank has actual knowledge that
such information is incorrect;

     (h) The Trustee Bank shall not be personally liable for the default or misconduct of the
Indenture Trustee under any of the Transaction Documents or otherwise, and the Trustee Bank shall
have no obligation or liability to perform the obligations of the Trust under this Agreement or the
Transaction Documents, in each case that are required to be performed by the Indenture Trustee
under the Indenture; and

     (i) The Trustee Bank shall be under no obligation to exercise any of the rights or powers
vested in it by this Agreement, or to institute, conduct or defend any litigation under this
Agreement or otherwise or in relation to this Agreement or any Transaction Document, at the
request, order or direction of the Beneficiary, unless the Beneficiary has offered to the Trustee
Bank security or indemnity satisfactory to it against the costs, expenses and liabilities that may
be incurred by the Trustee Bank therein or thereby. The right of the Trustee Bank to perform any
discretionary act enumerated in this Agreement or in any Transaction Document shall not be
construed as a duty, and the Trustee Bank shall not be answerable for other than its gross
negligence or willful misconduct in the performance of any such act.

     Section 6.02 Furnishing of Documents. The Owner Trustee will furnish to the
Beneficiary, within a reasonable time under the circumstances after receipt thereof, duplicates or
copies of all reports, notices, requests, demands, certificates, financial statements and any other
instruments furnished to the Owner Trustee with respect to the Trust or the Trust Estate.

15

 

     Section 6.03 No Representations and Warranties as to the Trust Estate. The Owner
Trustee makes no representation or warranty as to, and shall not be liable for, the title, value,
condition, design, operation, merchantability or fitness for use of the Trust Estate (or any part
thereof) or any other representation or warranty, express or implied, whatsoever with respect to
the Trust Estate (or any part thereof) except that the Owner Trustee, in its individual capacity,
hereby represents and warrants to the Beneficiary that it will comply with the last sentence of
Section 5.03(a).

     Section 6.04 Signature of Periodic Filings and Other Documents. The Beneficiary will
sign on behalf of the Trust any Periodic Filings of the Trust or other documents relating to the
Trust prepared by, or on behalf of, the Beneficiary.

     Section 6.05 Reliance; Advice of Counsel. The Owner Trustee will incur no liability
to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to be genuine and
believed by it to be signed by the proper party or parties. The Owner Trustee may accept a
certified copy of a resolution of the board of directors or other governing body of any entity as
conclusive evidence that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the manner of ascertainment of which is not
specifically prescribed herein, the Owner Trustee may for all purposes rely on an officer’s
certificate of the relevant party, as to such fact or matter, and such officer’s certificate will
constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it
in good faith in reliance thereon. In the administration of the Trust, the Owner Trustee may, at
the expense of the Trust (i) execute the trust or any of the powers hereof and perform its powers
and duties hereunder directly or through agents or attorneys, and the Owner Trustee will not be
liable for the default or misconduct of any agent or attorney selected by the Owner Trustee with
reasonable care; and (ii) consult with counsel, accountants and other skilled persons to be
selected with reasonable care and employed by it, and the Owner Trustee will not be liable for
anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of
any such counsel, accountants or other skilled persons.

     Section 6.06 Not Acting in Individual Capacity. Except as provided in this
Article VI, in accepting the trust hereunder the Trustee Bank acts solely as Owner Trustee
hereunder and not in its individual capacity; and all Persons having any claim against the Trust or
the Owner Trustee, whether by reason of the transactions contemplated by this Agreement or
otherwise, will look only to the Trust Estate (or a part thereof, as the case may be) for payment
or satisfaction thereof, except as specifically provided in this Article VI.

     Section 6.07 Representations and Warranties. The Trustee Bank, other than a Trustee
Bank appointed as a co-trustee, hereby represents and warrants to the Beneficiary that:

     (a) The Trustee Bank is a Delaware banking corporation duly organized and validly existing in
good standing under the laws of the State of Delaware. The Trustee Bank has all requisite
corporate power and authority to execute, deliver and perform its obligations under this Agreement.

16

 

     (b) The Trustee Bank has taken all corporate action necessary to authorize the execution and
delivery by it of this Agreement, and this Agreement will be executed and delivered by one of its
officers who is duly authorized to execute and deliver this Agreement on its behalf.

     (c) Neither the execution nor the delivery by it of this Agreement, the performance by it of
its obligations under this Agreement, nor the consummation by it of the transactions contemplated
hereby nor compliance by the Trustee Bank with any of the terms or provisions hereof will
contravene any federal or Delaware law, governmental rule or regulation governing the banking or
trust powers of the Owner Trustee or any judgment or order binding on the Trustee Bank, or
constitute any default under its charter documents or by-laws or any indenture, mortgage, lease,
license, contract, agreement or instrument to which the Trustee Bank is a party or by which the
Trustee Bank or any of the Trustee Bank’s properties may be bound.

     (d) The Trustee Bank complies with all of the requirements of Chapter 38, Title 12 of the
Delaware Code relating to the qualification of a trustee of a Delaware statutory trust.

ARTICLE VII.

TERMINATION OF TRUST AGREEMENT

     Section 7.01 Termination of Trust Agreement.

     (a) The Trust shall dissolve upon the final distribution by the Owner Trustee of all moneys or
other property or proceeds of the Trust Estate in accordance with the Delaware Statutory Trust Act.
Any money or other property held as part of the Trust Estate following such distribution shall be
distributed to the Beneficiary. The bankruptcy, dissolution, termination or incapacity of the
Beneficiary shall not (x) operate to terminate this Agreement or the Trust, or (y) entitle the
Beneficiary’s legal representatives to claim an accounting or to take any action or proceeding in
any court for a partition or winding up of all or any part of the Trust or Trust Estate or (z)
otherwise affect the rights, obligations and liabilities of the parties hereto.

     (b) The Beneficiary shall not be entitled to revoke or terminate the Trust.

     (c) Upon completion of the winding up of the Trust in accordance with the Delaware Statutory
Trust Act, the Owner Trustee shall cause the Certificate of Trust to be canceled by
filing a certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810 of the Delaware Statutory Trust Act and thereupon the Trust and this
Agreement (other than Article XI) shall terminate; provided, however, that any terms of
this Agreement that by their terms purport to survive such termination (including, without
limitation, Sections 11.01 and 11.02), shall continue in full force and effect.

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ARTICLE VIII.

SUCCESSOR OWNER TRUSTEES, CO-TRUSTEES

AND SEPARATE OWNER TRUSTEES

     Section 8.01 Resignation and Removal of the Owner Trustee; Appointment of Successors.
Upon the occurrence of a Disqualification Event with respect to the Owner Trustee, the Beneficiary
shall appoint a successor Owner Trustee by an instrument signed by the Beneficiary. If a successor
Owner Trustee has not been appointed within 30 days after the giving of written notice of such
resignation or the delivery of the written instrument with respect to such removal, the Owner
Trustee or the Beneficiary may apply to any court of competent jurisdiction to appoint a successor
Owner Trustee to act until such time, if any, as a successor Owner Trustee has been appointed as
above provided. Any successor Owner Trustee so appointed by such court will immediately and,
except as provided in Section 8.02 below, without further act be superseded by any
successor Owner Trustee appointed as above provided within one year from the date of the
appointment by such court. The Owner Trustee may resign at any time without cause by giving at
least thirty (30) days prior written notice to the Beneficiary. No such removal or resignation
shall become effective until a successor Owner Trustee, however appointed, becomes vested as Owner
Trustee hereunder pursuant to Section 8.02. The Beneficiary will notify the Note Rating
Agencies promptly after the resignation or removal of the Owner Trustee and promptly after the
appointment of a successor Owner Trustee.

     Section 8.02 Transfer Procedures. Any successor Owner Trustee, however appointed,
will execute and deliver to the predecessor Owner Trustee an instrument accepting such appointment,
and such other documents of transfer as may be necessary, and thereupon such successor Owner
Trustee, without further act, will become vested with all the estates, properties, rights, powers,
duties and trust of the predecessor Owner Trustee in the trust hereunder with like effect as if
originally named an Owner Trustee herein and the predecessor Owner Trustee will be fully discharged
of its duties and obligations to serve as Owner Trustee hereunder. The predecessor Owner Trustee
shall promptly deliver to the successor Owner Trustee all documents, statements and monies held by
it under this Agreement. The successor Owner Trustee shall promptly file an amendment to the
Certificate of Trust with the Secretary of State identifying the name and principal place of
business of such successor Owner Trustee in the State of Delaware.

     Section 8.03 Qualification of Owner Trustee. Any Owner Trustee will at all times (i) be
a trust company or a banking corporation under
the laws of its state of incorporation or a national banking association, having all corporate
powers and all material governmental licenses, authorizations, consents and approvals required to
carry on a trust business in the State of Delaware, (ii) comply with Section 3807 (and any other
applicable Section) of the Delaware Statutory Trust Act, (iii) have a combined capital and surplus
of not less than $50,000,000 (or have its obligations and liabilities irrevocably and
unconditionally guaranteed by an affiliated Person having a combined capital and surplus of at
least $50,000,000) and (iv) have (or have a parent which has) a rating of at least Baa3 by Moody’s,
at least BBB- by Standard & Poor’s or, if not rated, otherwise satisfactory to each Note Rating
Agency.

     Section 8.04 Co-trustees and Separate Owner Trustees. Whenever the Owner Trustee or
the Beneficiary shall deem it necessary or prudent in order either to conform to any law of any

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jurisdiction in which all or any part of the Trust Estate shall be situated or to make any claim or
bring any suit with respect to the Trust Estate, or whenever the Owner Trustee or the Beneficiary
shall be advised by counsel satisfactory to them that such action is necessary or prudent, the
Owner Trustee and the Beneficiary shall execute and deliver an agreement supplemental hereto and
all other instruments and agreements, and shall take all other actions, necessary or proper to
appoint one or more Persons either as co-trustee or co-trustees jointly with the Owner Trustee of
all or any part of the Trust Estate, or as a separate trustee or separate trustees of all or any
part of the Trust Estate, and to vest in such Persons, in such capacity, such title to the Trust
Estate or any part thereof, and such rights or duties, as may be necessary or desirable, all for
such period and under such terms and conditions as are satisfactory to the Owner Trustee and the
Beneficiary. In case a Disqualification Event shall occur with respect to any such co-trustee or
separate trustee, the title to the Trust Estate and all rights and duties of such co-trustee or
separate trustee shall, so far as permitted by law, vest in and be exercised by the Owner Trustee,
without the appointment of a successor to such co-trustee or separate trustee.

ARTICLE IX.

AMENDMENTS

     Section 9.01 Amendments.

     (a) This Agreement may be amended from time to time, by a written instrument executed by the
Owner Trustee, at the written direction of the Beneficiary, and the Beneficiary, without the
consent or the entitlement to vote of the Indenture Trustee or any Noteholders, so long as the
Beneficiary has received written confirmation from Moody’s, Standard & Poor’s, Fitch and any other
rating agency that rates at least 25% of the Outstanding Dollar Principal Amount of the Notes that such amendment will not cause them to reduce or withdraw
their ratings on any outstanding Notes then issued by the Trust; provided, however,
that such amendment will not significantly change the permitted activities of the Trust as set
forth in Section 2.03. The Owner Trustee shall not be responsible for
determining whether any such amendment to this Agreement will significantly change the
permitted activities of the Trust as set forth in Section 2.03.

     (b) This Agreement may also be amended from time to time, by a written instrument executed by
the Owner Trustee, at the written direction of the Beneficiary, and the Beneficiary, with prior
written notice to each Note Rating Agency, in the case of a significant change to the permitted
activities of the Trust as set forth in Section 2.03(a), with the consent of holders of a
majority of the Outstanding Dollar Principal Amount of each Series, Class or Tranche of Notes
affected by such change, voting as a single class (such majority to be calculated without taking
into account the Outstanding Dollar Principal Amount represented by any Note beneficially owned by
the Beneficiary or any Affiliate or agent of the Beneficiary); provided, however,
that, without the consent of the holders of all of the Notes then outstanding, no such amendment
shall reduce the aforesaid percentage of the Outstanding Dollar Principal Amount of the Notes, the
holders of which are required to consent to any such amendment.

     (c) Promptly after the execution of any such amendment or consent, the Beneficiary, on behalf
of the Trust, shall furnish written notification of the substance of such amendment or consent to
the Indenture Trustee and each Note Rating Agency.

19

 

     (d) It shall not be necessary for the consent of the Noteholders pursuant to this Section to
approve the particular form of any proposed amendment or consent, but it shall be sufficient if
such consent shall approve the substance thereof.

     (e) Promptly after the execution of any amendment to the Certificate of Trust, the Owner
Trustee shall cause the filing of such amendment with the Secretary of State.

     (f) The Owner Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an officer’s certificate of the Beneficiary to the effect that the conditions to such
amendment have been satisfied. The Owner Trustee may, but shall not be obligated to, enter into
any such amendment which affects the Owner Trustee’s own rights, duties or immunities under this
Agreement or otherwise.

ARTICLE X.

BENEFICIAL INTERESTS AND CERTIFICATES

     Section 10.01 Issuance of Trust Certificates.

     (a) Promptly following the execution and delivery of this Agreement, the Owner Trustee on
behalf of the Trust will issue and deliver to the Beneficiary a certificate of beneficial ownership
of the Trust Estate substantially in the form of Exhibit A hereto (the “Trust
Certificate”) evidencing the Beneficiary’s Beneficial Interest in the Trust. The Beneficiary,
in its capacity as the holder of the Trust Certificate, (i) shall be the sole beneficial owner of
the Trust and (ii) shall be bound by the provisions of this Agreement.

     (b) The Beneficiary will be entitled to all rights provided to it under this Agreement and in
the Trust Certificate and will be subject to the terms and conditions contained in this Agreement
and in the Trust Certificate.

     (c) The Owner Trustee will maintain at its office referred to in Section 2.08, or at
the office of any agent appointed by it and approved in writing by the Beneficiary, a register for
the registration of the Trust Certificate. Such register will show the name and address of the
holder of the Trust Certificate, and the Owner Trustee will treat such register as definitive and
binding for all purposes hereunder.

     (d) When the Trust Certificate is duly executed and issued by the Trust and duly authenticated
by the Owner Trustee in accordance with this Agreement, the Trust Certificate will be fully paid,
validly issued, non-assessable and entitled to the benefits of this Agreement.

     Section 10.02 Beneficial Interest; Prohibitions on Transfer.

     (a) The Beneficial Interest will initially be beneficially owned by Discover Bank. Transfers
of all or a portion of the Beneficial Interest and the Trust Certificate may be made between
Discover Bank and any other Person who is an Affiliate of Discover Bank (a “Permitted Affiliate
Transferee”) upon delivery to the Master Trust Trustee and the Owner Trustee of a Master Trust
Tax Opinion and an Issuer Tax Opinion with respect to such transfer. The Beneficiary may not sell,
participate, transfer, assign, exchange or otherwise pledge or convey all

20

 

or any part of its right,
title and interest in and to the Trust Certificate or its Beneficial Interest to any other Person,
except to any Permitted Affiliate Transferee. Any purported transfer by the Beneficiary of all or
any part of its right, title and interest in and to the Trust Certificate to any Person will be
effective only upon the issuance of a Master Trust Tax Opinion and an Issuer Tax Opinion to the
Master Trust Trustee and the Owner Trustee, which will not be an expense of the Owner Trustee or
the Trustee Bank. Any purported transfer by the Beneficiary of all or any part of its right, title
and interest in and to the Trust Certificate which is not in compliance with the terms of this
Section 10.02 will be null and void.

     (b) The Trust Certificate will bear a legend setting forth the restriction on the
transferability of the Beneficial Interest substantially as follows:

“THIS CERTIFICATE MAY NOT BE TRANSFERRED, ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED
OR CONVEYED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE TRUST AGREEMENT REFERRED TO
BELOW. IN ADDITION, THE BENEFICIAL INTEREST IN THE TRUST REPRESENTED BY THIS
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY
NOT BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER
HEREOF UNLESS SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT,
THE INVESTMENT
COMPANY ACT OF 1940, AS AMENDED AND APPLICABLE STATE SECURITIES LAWS.”

     (c) The Owner Trustee shall not be required to ascertain whether any purported transfer of the
Beneficial Interest and the Trust Certificate complies with the Securities Act.

     Section 10.03 Lost or Destroyed Trust Certificate. If the Trust Certificate shall
become mutilated, destroyed, lost or stolen, the Owner Trustee on behalf of the Trust will, upon
the written request of the Beneficiary, and compliance with all applicable terms of this paragraph,
execute and deliver to such holder in replacement thereof a new Trust Certificate dated the same
date as on the Trust Certificate so mutilated, destroyed, lost or stolen. If the Trust Certificate
being replaced has been mutilated, destroyed, lost or stolen, the Beneficiary will furnish to the
Owner Trustee such security or indemnity as may be required by the Owner Trustee to save the Owner
Trustee harmless from any damage, loss or liability in connection with such Trust Certificate, and
the Owner Trustee may require from the Beneficiary payment of a sum to reimburse the Owner Trustee
for, or to provide funds for, the payment of any costs, fees and expenses and any tax or other
governmental charge in connection therewith and any charges paid or payable by the Owner Trustee.

21

 

ARTICLE XI.

COMPENSATION OF TRUSTEE BANK AND INDEMNIFICATION

     Section 11.01 Trustee Bank Fees and Expenses. The Beneficiary will pay to the Trustee
Bank all fees and other charges described in a separate fee agreement dated as of the date hereof
between the Beneficiary and the Trustee Bank promptly when due thereunder and reimburse the Trustee
Bank for all other reasonable out-of-pocket costs and expenses (including reasonable fees and
expenses of counsel) incurred by it in connection with its acting as Owner Trustee of the Trust.
Except to the extent specifically provided in Section 703 of the Indenture, payment of such
fees and expenses will not be a recourse obligation of the Issuer.

     Section 11.02 Indemnification. To the fullest extent permitted by law, the
Beneficiary hereby agrees, whether or not any of the transactions contemplated by this Agreement
will be consummated, to assume liability for, and hereby indemnifies, protects, saves and keeps
harmless the Trustee Bank and its officers, directors, successors, assigns, legal representatives,
agents and servants (each an “Indemnified Person”), from and against any and all
liabilities, obligations, losses, damages, penalties, claims, actions, investigations, proceedings,
costs, expenses or disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever which may be imposed on, incurred by or asserted at any time against an
Indemnified Person (whether or not also indemnified against by any other Person) in any way
relating to or arising out of this Agreement or any other related documents or the enforcement of
any of the terms of any thereof, the administration of the Trust Estate or the action or inaction
of the Owner Trustee, or the Trustee Bank under this Agreement, except, in any such case, to the
extent that any such liabilities, obligations, losses, damages,
penalties, claims, actions, investigations, proceedings, costs, expenses and disbursements are
the result of any of the matters described in the third sentence of Section 6.01;
provided, however, that the Beneficiary shall not be liable for or required to
indemnify an Indemnified Person from and against expenses arising or resulting from (i) the
Indemnified Person’s own willful misconduct, bad faith or gross negligence, or (ii) the inaccuracy
of any representation or warranty contained in Section 6.07 made by the Indemnified Person.

     In case any such action, investigation or proceeding will be brought involving an Indemnified
Person, the Beneficiary will assume the defense thereof, including the employment of counsel and
the payment of all expenses. The Trustee Bank will have the right to employ separate counsel in
any such action, investigation or proceeding and to participate in the defense thereof and the
reasonable counsel fees and expenses of such counsel will be paid by the Beneficiary. In the event
of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the
Trustee Bank’s choice of legal counsel shall be subject to the approval of the Beneficiary, which
approval shall not be unreasonably withheld.

     Except to the extent specifically provided in Section 703 of the Indenture, the
payment of such indemnified amounts will not be a recourse obligation of the Issuer.

     The indemnification set forth herein will survive the termination of this Agreement and the
resignation or removal of the Trustee Bank.

22

 

ARTICLE XII.

MISCELLANEOUS

     Section 12.01 Conveyance by the Owner Trustee is Binding. Any sale or other
conveyance of any part of the Trust Estate by the Owner Trustee on behalf of the Trust made
pursuant to the terms of this Agreement will bind the Beneficiary and will be effective to transfer
or convey all beneficial interest of the Owner Trustee and Beneficiary in and to such part of the
Trust Estate, as the case may be. No purchaser or other grantee will be required to inquire as to
the authorization, necessity, expediency or regularity of such sale or conveyance or as to the
application of any sale or other proceeds with respect thereto by the Owner Trustee or the
officers.

     Section 12.02 Instructions; Notices. All instructions, notices, requests or other
communications (“Deliveries”) desired or required to be given under this Agreement will be
in writing and will be sent by (a) certified or registered mail, return receipt requested, postage
prepaid, (b) national prepaid overnight delivery service, (c) telecopy or other facsimile
transmission, (d) electronic mail or (e) personal delivery, with receipt acknowledged in writing,
to the following addresses:

(i) if to Discover Bank:

     Discover Bank

     12 Read’s Way

     New Castle, Delaware 19720

     Attention: Secretary

     Facsimile: (302) 323-7393

(ii) if
to the Owner Trustee:

     Wilmington Trust Company

     Rodney Square North

     1100 North Market Street

     Wilmington, Delaware 19890

     Attention: Corporate Trust Administration

     Fax: (302) 636-4140

     All Deliveries will be deemed given when actually received or refused by the party to whom the
same is directed (except to the extent sent by certified or registered mail, return receipt
requested, postage prepaid, in which event such Deliveries will be deemed given three days after
the date of mailing and except to the extent sent by telecopy or other facsimile transmission, in
which event such Deliveries will be deemed given when answer back is received). Either party may
designate a change of address or supplemental address by notice to the other party, given at least
fifteen (15) days (or such shorter period of time as such other party shall agree to) before such
change of address is to become effective.

     Section 12.03 Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of
such

23

 

prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction will not invalidate or render
unenforceable any provision hereof in any other jurisdiction.

     Section 12.04 Limitation of Liability.

     (a) To the fullest extent permitted by applicable law, neither the Beneficiary nor any
officer, director, employee, agent, partner, shareholder, trustee or principal of the Beneficiary,
the Trust or any Person owning, directly or indirectly, any legal or beneficial interest in the
Beneficiary, will have any liability or obligation with respect to the Trust or the performance of
this Agreement or any other agreement, document or instrument executed by the Trust, and the
creditors of the Trust and all other Persons will look solely to the Trust Estate for the
satisfaction of any claims with respect thereto. The foregoing limitation of liability is subject
to Section 12.06 and is in addition to, and not exclusive of, any limitation of liability
applicable to the Persons referred to above by operation of law.

     (b) All agreements entered into by the Trust under which the Trust would have any material
liability will contain an exculpatory provision substantially to the following effect (provided,
however, that the failure of any agreement to contain such an exculpatory provision shall not be
deemed nor construed as evidence that a contrary result is intended):

 Neither any trustee nor any beneficiary of Discover Card Execution Note Trust nor
any of their respective officers, directors, employers or agents will have any
liability with respect to this agreement, and recourse may be had solely to the
assets of Discover Card Execution Note Trust with respect thereto.

     Section 12.05 Separate Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered will be an original,
but all such counterparts will together constitute but one and the same instrument.

     Section 12.06 Successors and Assigns. All covenants and agreements contained herein
will be binding upon, and inure to the benefit of, the Owner Trustee and its successors and assigns
and the Beneficiary and its successors and permitted assigns, all as herein provided. Any request,
notice, direction, consent, waiver or other instrument or action by the Beneficiary will bind the
successors and assigns of the Beneficiary.

     Section 12.07 Headings. The headings of the various Sections herein are for
convenience of reference only and will not limit any of the terms or provisions herein.

     Section 12.08 Governing Law. THIS AGREEMENT WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES OF
SUCH STATE.

     Section 12.09 Nonpetition Covenants. To the fullest extent permitted by applicable
law, notwithstanding any prior termination of the Trust or this Agreement, the Owner Trustee and
the Beneficiary, by its acceptance of the Beneficial Interest, shall not at any time with respect
to the Trust, the Beneficiary or any applicable Master Trust acquiesce, petition or otherwise
invoke or

24

 

cause the Trust, the Beneficiary or any applicable Master Trust to invoke the process of
any court or government authority for the purpose of commencing or sustaining a case against the
Trust, the Beneficiary or any applicable Master Trust under any Federal or state bankruptcy,
insolvency or similar law or appointing a receiver, conservator, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Trust, the Beneficiary or any applicable
Master Trust or any substantial part of its property, or ordering the winding up or liquidation of
the affairs of the
Trust, the Beneficiary or any applicable Master Trust; provided, that this Section
12.09 shall not operate to preclude any remedy described in Article VII of the
Indenture.

     Section 12.10 No Recourse. The holder of the Trust Certificate by accepting the Trust
Certificate acknowledges that the Trust Certificate does not represent an interest in or obligation
of the Beneficiary, the Owner Trustee (in its individual capacity), the Indenture Trustee or any
Affiliate thereof, and no recourse may be had against such parties or their assets, or against the
assets pledged under the Indenture.

     Section 12.11 Acceptance of Terms of Agreement. THE RECEIPT AND ACCEPTANCE OF THE
TRUST CERTIFICATE BY THE BENEFICIARY, WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT,
SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE BENEFICIARY OF ALL THE TERMS AND PROVISIONS OF
THIS AGREEMENT, AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST THAT THE TERMS AND PROVISIONS OF
THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE TRUST AND THE BENEFICIARY.

     Section 12.12 Acknowledgement and Acceptance of Indenture. Discover Bank, as
Beneficiary, by its signature hereto, acknowledges and accepts the Indenture.

ARTICLE XIII.

COMPLIANCE WITH REGULATION AB

     Section 13.01 Intent of the Parties; Reasonableness. Discover Bank as the Beneficiary
and the Trustee Bank acknowledge and agree that the purpose of this Article XIII is to
facilitate compliance by Discover Bank with the provisions of Regulation AB and related rules and
regulations of the Commission. Discover Bank shall not exercise its right to request delivery of
information or other performance under these provisions other than in good faith, or for purposes
other than Discover Bank’s compliance with the Securities Act, the Securities Exchange Act and the
rules and regulations of the Commission thereunder (or the provision in a private offering of
disclosure comparable to that required under the Securities Act). The Trustee Bank agrees to
cooperate in good faith with any reasonable request by Discover Bank for information regarding the
Trustee Bank which is required in order to enable Discover Bank to comply with the provisions of
Regulation AB as it relates to the Trustee Bank or to the Trustee Bank’s obligations under this
Agreement. Terms used in this Article XIII that are defined in Regulation AB but are not defined
in Section 1.01 of this Agreement shall have the meanings ascribed to them in Regulation AB.

25

 

     Section 13.02 Additional Representations and Warranties of the Trustee Bank. The Trustee Bank
shall be deemed to represent to Discover Bank, as of the date on which
information is provided under Section 1503 of the Indenture that, except as disclosed in writing to
Discover Bank prior to such date to the best of its knowledge: (i) neither the execution, delivery
and performance by the Trustee Bank of this Agreement or any of the Transaction Documents, the
performance by the Trustee Bank of its obligations under this Agreement or any of the Transaction
Documents nor the consummation of any of the transactions by the Trustee Bank contemplated thereby,
is in violation of any indenture, mortgage, bank credit agreement, note or bond purchase agreement,
long-term lease, license or other agreement or instrument to which the Trustee Bank is a party or
by which it is bound, which violation would have a material adverse effect on the Trustee Bank’s
ability to perform its obligations under this Agreement or any of the Transaction Documents, or of
any judgment or order applicable to the Trustee Bank; and (ii) there are no proceedings pending or
threatened against the Trustee Bank in any court or before any governmental authority, agency or
arbitration board or tribunal which, individually or in the aggregate, would have a material
adverse effect on the right, power and authority of the Trustee Bank to enter into this Agreement
or any of the Transaction Documents or to perform its obligations under this Agreement or any of
the Transaction Documents.

     Section 13.03 Information to Be Provided by the Owner Trustee.

     (a) The Trustee Bank shall (i) on or before the fifth Business Day of each month, provide to
Discover Bank, in writing, such information regarding the Trustee Bank as is requested for the
purpose of compliance with Item 1117 of Regulation AB, including but not limited to a letter
addressed to Discover Bank in substantially the form (with appropriate insertions) of Exhibit C
hereto, and (ii) as promptly as practicable following notice to or discovery by the Trustee Bank of
any changes to such information, provide to Discover Bank, in writing, such updated information.

     (b) The Trustee Bank shall (i) in connection with any Securitization Transaction which
requires a prospectus, prospectus supplement, offering memorandum or related documents, provide to
Discover Bank such information regarding the Trustee Bank as is requested and within the timeframe
as is reasonably requested for purposes of compliance with Items 1109(a), 1109(b), 1117 and 1119 of
Regulation AB, and (ii) as promptly as practicable following notice to or discovery by the Trustee
Bank of any material changes to such previously provided information or to the business operations
of the Trustee Bank, provide to Discover Bank, in writing, such updated information, and such other
information as may be reasonably requested for purposes of satisfying Exchange Act reporting
obligations of the Trust. Such information shall include, at a minimum:

          (A) the Trustee Bank’s name and form of organization;

          (B) a description of the extent to which the Trustee Bank has had prior experience serving as
a trustee for asset-backed securities transactions involving credit card receivables;

          (C) a description of any affiliation between the Trustee Bank and any of the following parties
to a Securitization Transaction, as such parties are identified by name to

26

 

the
Trustee Bank by Discover Bank in writing within at least three
Business Days in advance of such
Securitization Transaction:

	 	(1)	 	the sponsor;
	 
	 	(2)	 	any depositor;
	 
	 	(3)	 	the issuing entity;
	 
	 	(4)	 	any servicer;
	 
	 	(5)	 	any trustee;
	 
	 	(6)	 	any originator;
	 
	 	(7)	 	any significant obligor;
	 
	 	(8)	 	any enhancement or support provider; and
	 
	 	(9)	 	any other material transaction party.

In connection with the above-listed parties, a description of whether there is, and if so the
general character of, any business relationship, agreement, arrangement, transaction or
understanding between the Trustee Bank and any of the above specified parties that is entered into
outside the ordinary course of business or is on terms other than would be obtained in an arm’s
length transaction with an unrelated third party, apart from such Securitization Transaction, the
Agreement and any of the Transaction Documents that currently exists or that existed during the
past two years, and that is material to an investor’s understanding of the asset-backed securities.

     With respect to the information required to be provided under this Section 13.03, the Trustee
Bank shall not be required to provide such information in the event that there has been no change
to the information previously provided by the Trustee Bank to Discover Bank but shall at Discover
Bank’s request confirm that there has been no change. In connection with each Report on Form 10-K
with respect to the Notes and each Report on Form 10-D with respect to the Notes filed by or on
behalf of Discover Bank, the Trustee Bank shall be deemed to
represent and warrant, as of February 13th for the Report on Form 10-K and as of the related Payment Date for the Report on
Form 10-D, that any information previously provided by the Trustee Bank under this Article XIII is
materially correct and does not have any material omissions unless the Trustee Bank has provided an
update to such information.

[Signature Page to Follow]

27

 

     IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly executed, by
their representative officers hereunder duly authorized all as of the day and year first above
written.

	 	 	 	 	 
	 	DISCOVER BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WILMINGTON TRUST COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Discover Card Execution Note Trust Trust Agreement]

 

 

EXHIBIT A

[FORM OF] TRUST CERTIFICATE

THIS CERTIFICATE MAY NOT BE TRANSFERRED, ASSIGNED, EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED
EXCEPT IN COMPLIANCE WITH THE TERMS OF THE TRUST AGREEMENT REFERRED TO BELOW. IN ADDITION, THE
BENEFICIAL INTEREST IN THE TRUST REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE
SECURITIES LAWS AND MAY NOT BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF BY
THE HOLDER HEREOF UNLESS SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT, THE
INVESTMENT COMPANY ACT OF 1940, AS AMENDED AND APPLICABLE STATE SECURITIES LAWS.

DISCOVER CARD EXECUTION NOTE TRUST

TRUST CERTIFICATE

(This Certificate does not represent an interest in or obligation of Discover Bank or any of its
affiliates, except to the extent described below.)

     THIS CERTIFIES THAT Discover Bank is the registered beneficial owner of one hundred percent
(100%) of the beneficial interest in Discover Card Execution Note Trust (the “Trust”), a
Delaware statutory trust created by Discover Bank, a Delaware banking corporation (“Discover
Bank”).

     The Trust was created and exists pursuant to (i) the filing of the Certificate of Trust with
the Secretary of State of the State of Delaware and (ii) the Trust Agreement for the Discover Card
Execution Note Trust, dated as of ___, 2007 (the “Trust Agreement”), between Discover
Bank, as Beneficiary, and Wilmington Trust Company, as owner trustee (the “Owner Trustee”).
To the extent not otherwise defined herein, the capitalized terms used herein have the meanings
assigned to them in the Trust Agreement as specified in Section 1.01.

     This Certificate is the duly authorized Certificate evidencing a beneficial interest in the
Trust (herein called the “Certificate”). This Certificate is issued under and is subject
to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the
Beneficiary by virtue of the acceptance hereof assents and by which the Beneficiary is bound.

     Notwithstanding any prior termination of the Trust Agreement, the Beneficiary, by its
acceptance of this Certificate, covenants and agrees that, to the fullest extent permitted by
applicable law, it shall not at any time with respect to the Trust, the Beneficiary or any
applicable Master Trust, acquiesce, petition or otherwise invoke or cause the Trust, the
Beneficiary or any applicable Master Trust to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Trust, the Beneficiary or
any applicable Master Trust under any Federal or state bankruptcy, insolvency or similar law or
appointing a receiver, conservator, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Trust, the Beneficiary or any applicable Master Trust or any substantial
part of its

A-1

 

property, or ordering the winding up or liquidation of the affairs of the Trust, the
Beneficiary or any applicable Master Trust.

     Unless the certificate of authentication hereon shall have been executed by an authorized
officer of the Owner Trustee, by manual signature, this Certificate shall not entitle the Holder
hereof to any benefit under the Trust Agreement or any Transaction Document or be valid for any
purpose.

     THIS CERTIFICATE AND THE TRUST AGREEMENT WILL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ANY CONFLICT-OF-LAW
PROVISIONS AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE BENEFICIARY SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

A-2

 

     IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual
capacity pursuant to the Trust Agreement, has caused this Certificate to be issued by the Trust as
of the date hereof.

	 	 	 	 	 
	 	DISCOVER CARD EXECUTION NOTE TRUST

 	 
	 	By:  	By Wilmington Trust Company, not in its individual

capacity but solely as Owner Trustee

	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Date: _________ __, 200_

A-3

 

CERTIFICATE OF AUTHENTICATION

This is the Certificate referred to in the within-mentioned Trust Agreement.

	 	 	 	 	 	 	 	 	 
	Wilmington Trust Company, not
in its individual capacity but
solely as Owner Trustee	 	or	 	Wilmington Trust Company, not
in its individual capacity but
solely as Owner Trustee
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authenticating Agent
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Authorized Signatory
	 	 	 	 	 	Authorized Signatory

A-4

 

ANNEX I to EXHIBIT A

Registered Owner and address:

Discover Bank

12 Read’s Way

New Castle, Delaware 19720

Tax Identification Number:

A-I-1

 

EXHIBIT B

CERTIFICATE OF TRUST OF

DISCOVER CARD EXECUTION NOTE TRUST

     THIS Certificate of Trust of Discover Card Execution Note Trust (the “Trust”) has been
duly executed and is being filed by Wilmington Trust Company, as owner trustee, to create a
statutory trust under the Delaware Statutory Trust Act (12 Del. C., § 3801 et
seq.).

     1. Name. The name of the statutory trust created hereby is Discover Card Execution Note
Trust.

     2. Delaware Trustee. The name and business address of the owner trustee of the Trust in the
State of Delaware are Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, Attn: Corporate Trust Administration.

     3. Effective Date. This Certificate of Trust shall be effective on ___, 2007.

     IN WITNESS WHEREOF, the undersigned, has executed this Certificate of Trust in accordance with
Section 3811(a) of the Delaware Statutory Trust Act.

	 	 	 	 	 
	 	Wilmington Trust Company, not in its individual

capacity but solely as Owner Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-1

 

	 	 	 	 	 

EXHIBIT C

FORM OF TRUSTEE BANK’S LITIGATION CERTIFICATE

DISCOVER CARD EXECUTION NOTE TRUST

     The undersigned, a [___] of Wilmington Trust
Company (the “Trustee Bank”), a banking corporation organized under the laws of the
Delaware, DOES HEREBY CERTIFY as follows:

     To my knowledge, during the calendar month preceding the calendar month of the date hereof[,
except as set forth on Exhibit A hereto,] no legal proceeding (including proceedings of
governmental authorities) against the Trustee Bank or against the property of the Trustee Bank that
is material to security holders of any series of Notes issued by Discover Card Execution Note
Trust, was initiated, terminated or experienced any developments that are material to such security
holders.

     IN WITNESS WHEREOF, the undersigned has caused this Certificate to be duly executed this [___]
day of [___], [___].

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

C-1

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