Document:

<PAGE>

                                                                    EXHIBIT 10.1

                           PURCHASE AND SALE AGREEMENT

                                 By and between

                               BLC PROPERTIES LLC

                                       And

                                     WPP LLC

                                December 22, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                          <C>
ARTICLE 1:  DEFINITIONS AND INTERPRETATIONS............................................................       1
   1.1  Definitions....................................................................................       1
   1.2  Interpretations................................................................................       2
ARTICLE 2:  PURCHASE AND SALE OF ASSETS................................................................       2
   2.1  Purchase and Sale..............................................................................       2
   2.2  Purchase Price.................................................................................       2
   2.3  The Closing....................................................................................       2
   2.4  Effective Time.................................................................................       2
   2.5  Deliveries at the Closing......................................................................       3
ARTICLE 3:  REPRESENTATIONS AND WARRANTIES OF SELLER...................................................       4
   3.1  Representations as to Seller and Transaction...................................................       4
   3.2  Representations and Warranties Concerning the Assets...........................................       5
ARTICLE 4:  REPRESENTATIONS AND WARRANTIES OF BUYER....................................................       7
   4.1  Representations and Warranties of the Buyer....................................................       7
ARTICLE 5:  POST-CLOSING COVENANTS.....................................................................       8
   5.1  General........................................................................................       8
   5.2  Possession and Retention of and Access to the Records..........................................       8
   5.3  Release of Encumbrances........................................................................       9
ARTICLE 6:  REMEDIES FOR BREACHES OF AGREEMENT.........................................................       9
   6.1  Survival of Representations, Warranties and Certain Covenants..................................       9
   6.2  Indemnification Provisions for Benefit of the Buyer............................................       9
   6.3  Indemnification Provisions for Benefit of Seller...............................................      10
   6.4  Matters Involving Third Parties................................................................      11
   6.5  Determination of Amount of Adverse Consequences................................................      12
   6.6  Tax Treatment of Indemnity Payments............................................................      12
ARTICLE 7:  TAX MATTERS................................................................................      12
   7.1  Post-Closing Tax Returns.......................................................................      12
   7.2  Pre-Closing Tax Returns........................................................................      12
   7.3  Allocation of Ad Valorem Taxes.................................................................      12
   7.4  Claims for Refund..............................................................................      12
   7.5  Cooperation on Tax Matters.....................................................................      13
   7.6  Certain Taxes..................................................................................      13
   7.7  Audits.........................................................................................      13
   7.8  Control of Proceedings.........................................................................      14
   7.9  Powers of Attorney.............................................................................      14
   7.10  Remittance of Refunds.........................................................................      14
   7.11  Purchase Price Allocation.....................................................................      15
   7.12  Closing Tax Certificate.......................................................................      15
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                          <C>
ARTICLE 8:  MISCELLANEOUS..............................................................................      15
   8.1  Insurance......................................................................................      15
   8.2  Press Releases and Public Announcements........................................................      15
   8.3  No Third Party Beneficiaries...................................................................      16
   8.4  Succession and Assignment......................................................................      16
   8.5  Counterparts...................................................................................      16
   8.6  Notices........................................................................................      16
   8.7  Personnel......................................................................................      18
   8.8  Financial Statements of Seller.................................................................      18
   8.9  Governing Law..................................................................................      18
   8.10  Consent to Jurisdiction and Service of Process; Appointment of Agent for Service of Process...      18
   8.11  Waiver of Jury Trial..........................................................................      19
   8.12  Entire Agreement..............................................................................      20
   8.13  Severability..................................................................................      20
   8.14  Transaction Expenses..........................................................................      20
</TABLE>

                                       ii

<PAGE>

                                    EXHIBITS

<TABLE>
<S>                <C>
Exhibit A:         Definitions and Interpretations
Exhibit B:         Description of Mineral Properties
Exhibit C:         Description of Surface Property
Exhibit D:         Surface Damage and Royalty Agreement Recording Information and
                   Mutual Easement Agreement Recording Information
Exhibit E:         Form of Agreement Respecting Non-Participating Royalty Interest
Exhibit F:         Forms of Special Warranty Deed (Tennessee, Kentucky, Alabama,
                   Virginia and West Virginia)
Exhibit G:         Form of Assignment and Assumption of Leases
Exhibit H:         Form of Assignment and Assumption of Rights and Obligations
Exhibit I:         Form of Bill of Sale
</TABLE>

                                    SCHEDULES

<TABLE>
<S>                <C>
Schedule 2.1(c)    Leases
Schedule 2.1(e)    Personal Property (Vehicles)
Schedule 3.1(c)    Required Third Party Consents or Approvals
Schedule 3.2(a)    Encumbrances Which Will Be Satisfied From Sales Proceeds
Schedule 3.2(b)    Adverse Claims
Schedule 3.2(d)    Litigation
Schedule 3.2(f)    Defaults Under Leases
Schedule 3.2(g)    Additional Mineral Leases and Extended Mineral Leases
</TABLE>

                                      iii

<PAGE>

                           PURCHASE AND SALE AGREEMENT

         THIS PURCHASE AND SALE AGREEMENT (this "Agreement") dated as of
December 22, 2003 is by and between BLC Properties LLC, a Delaware limited
liability company, ("BLC" or "Seller") and WPP LLC, a Delaware limited liability
company, ("Buyer"). Seller and Buyer are sometimes referred to collectively
herein as the "Parties" and individually as a "Party."

                                    RECITALS

         WHEREAS, BLC owns approximately 440,000 acres of mineral properties as
described on Exhibit B hereto ("Mineral Properties") and approximately 1,500
acres of surface property associated with the Mineral Properties, as described
on Exhibit C hereto ("Surface Property"); and

         WHEREAS, BLC has sold the surface over certain of the Mineral
Properties to Ataya Hardwoods, LLC and with regard to such surface there is a
Surface Damage and Royalty Agreement (the "SDRA") that controls the use of such
surface and a Mutual Easement Agreement (the "MEA") concerning certain related
matters, and the recording information for the SDRA and the MEA is attached
hereto as Exhibit D (with certain related information); and

         WHEREAS, this Agreement contemplates a transaction in which Buyer will
purchase Seller's right, title and interest in and to the Mineral Properties and
the Surface Property in return for the consideration specified herein; and

         WHEREAS, BLC will retain a non-participating royalty interest as to the
oil, gas (including coal bed methane) and other mineral estates (other than
coal) on the Mineral Properties ("Royalty Minerals") and the effect thereof will
be governed by an Agreement Respecting Non-Participating Royalty Interest which
is attached hereto as Exhibit E;

         NOW, THEREFORE, in consideration of the premises and the mutual
promises herein made, and in consideration of the representations, warranties,
and covenants herein contained, the Parties agree as follows:

                                   ARTICLE 1
                         DEFINITIONS AND INTERPRETATIONS

         1.1      Definitions. Unless otherwise provided to the contrary in this
Agreement, capitalized terms in this Agreement shall have the meanings set forth
in Exhibit A.

<PAGE>

         1.2      Interpretations. Unless expressly provided to the contrary in
this Agreement, this Agreement shall be interpreted in accordance with the
provisions set forth in Exhibit A.

                                   ARTICLE 2
                           PURCHASE AND SALE OF ASSETS

         2.1      Purchase and Sale. Subject to the terms and conditions of this
Agreement and the Exhibits hereto, Seller agrees to sell to Buyer and Buyer
agrees to purchase from Seller all of Seller's right, title and interest in the
following:

                  (a)      the Mineral Properties;

                  (b)      the Surface Property;

                  (c)      the Leases;

                  (d)      the Records; and

                  (e)      the Personal Property.

         2.2      Purchase Price. In consideration for the Assets, Buyer agrees
to pay to Seller at Closing $73,000,000 (the "Purchase Price"), by wire transfer
of immediately available funds to Seller as designated by Seller prior to the
Closing Date and such payment shall constitute the receipt by Seller of the
Purchase Price as allocated pursuant to Section 7.11 hereof.

         2.3      The Closing. The closing of the transactions contemplated by
this Agreement (the "Closing") shall take place in person with delivery of
original documents or via facsimile delivery of documents and receipt of
documents previously sent by overnight courier service, if any. All of the
deliveries of documents that are contemplated by this Agreement to be made at
the Closing shall be delivered to the applicable Party or Parties by (i) in
person delivery, (ii) overnight courier service for delivery on the Closing Date
or (iii) if delivery by overnight courier service on the Closing Date is not
practicable, then by facsimile on the Closing Date, with original executed
documents delivered on the next succeeding business day. Any documents to be
delivered to a Party on the Closing Date will be delivered and held in escrow
until the Parties communicate via telephone to confirm delivery of all documents
and consummation of all other actions contemplated by this Article 2.

         2.4      Effective Time. The transactions contemplated by this
Agreement shall be effective as of 12:01 AM on January 1, 2004 (the "Effective
Time").

                                     - 2 -

<PAGE>

         2.5      Deliveries at the Closing. At the Closing:

                  (a)      Seller shall deliver to Buyer the certificate
required by Section 7.12 hereof;

                  (b)      Seller shall deliver all third party consents
required to effectuate the transactions under this Agreement on terms acceptable
to Buyer, in its sole discretion;

                  (c)      Seller and Buyer shall execute the Agreement
Respecting Non-Participating Royalty Interest in substantially the form attached
as Exhibit E;

                  (d)      Seller shall execute and deliver to Buyer special
warranty deeds (the "Deeds"), substantially in the forms attached as Exhibit F,
to convey the Mineral Properties and related mining rights and the Surface
Property, together with any transfer tax declarations required by applicable
law;

                  (e)      Seller and Buyer shall execute the Assignment and
Assumption of Leases in substantially the form attached as Exhibit G;

                  (f)      Seller and Buyer shall execute the Assignment and
Assumption of Rights and Obligations in substantially the form attached as
Exhibit H;

                  (g)      Seller shall execute and deliver the Bill of Sale in
substantially the form of Exhibit I transferring to Buyer title to the Records
and Personal Property;

                  (h)      Each of Seller and Buyer shall deliver to the other a
Certificate of Authority in customary form evidencing the authority of the
officer executing this Agreement on behalf of such Party;

                  (i)      Seller and Buyer shall agree upon and execute a
Closing Statement in customary form and content;

                  (j)      Buyer shall deliver the Purchase Price by wire
transfer to the Seller as specified in Section 2.2 of this Agreement;

                  (k)      Seller shall deliver to Buyer the certificates of
title and any related documents necessary to transfer title to the vehicles
listed on Schedule 2.1(e) to Buyer; and

                  (l)      Each of Seller and Buyer shall deliver to the other a
Bringdown Certificate in customary form certifying that the representations and
warranties made in this Agreement remain accurate in all material respects as of
the Closing Date.

                                     - 3 -

<PAGE>

                                   ARTICLE 3
                    REPRESENTATIONS AND WARRANTIES OF SELLER

         3.1      Representations as to Seller and Transaction. Seller
represents and warrants to Buyer as follows:

                  (a)      Organization of Seller. Seller is a limited liability
company duly organized, validly existing, and in good standing under the Laws of
the State of Delaware. Seller is duly qualified and in good standing to conduct
business in Kentucky, Tennessee, Alabama, Virginia and West Virginia.

                  (b)      Authorization of Transaction. Seller has full limited
liability company power and authority to execute and deliver this Agreement and
to perform its obligations under this Agreement. This Agreement constitutes the
valid and legally binding obligation of Seller enforceable in accordance with
its terms and conditions, subject, however, to the effects of bankruptcy,
insolvency, reorganization, moratorium or similar Laws affecting creditors'
rights generally, and to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

                  (c)      Noncontravention. Neither the execution and delivery
of this Agreement, nor the consummation of the transactions contemplated hereby,
will (i) violate any statute, regulation, rule, injunction, judgment, order,
decree, ruling, charge, or other restriction of any Governmental Authority to
which Seller, or any of the Assets is subject or any provision of Seller's
Organizational Documents or (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify, or cancel, or require any notice
under any agreement, contract, lease, license, instrument, or other arrangement
to which Seller is a party or by which Seller or any of the Assets is bound or
to which any of its assets (including the Assets) is subject, except (x) for
required consents to transfer and related provisions and any other third party
approvals or consents contemplated by this Agreement and set out and listed in
Schedule 3.1(c) which is attached hereto and made a part hereof, and (y) where
the violation, conflict, default, breach, acceleration, termination,
modification, cancellation, failure to give notice, right to payment or other
compensation, Encumbrance or other occurrence would not have a Material Adverse
Effect on the ability of Seller to consummate the transactions contemplated by
this Agreement. Seller need not give notice to, make any filing with, or obtain
any authorization, consent, or approval of any Governmental Authority in order
for the Parties to consummate the transactions contemplated by this Agreement,
except where the failure to give notice, to file, or to obtain any
authorization, consent, or approval would not have a Material Adverse Effect or
would not materially adversely affect the ability of Seller to consummate the
transactions contemplated by this Agreement.

                  (d)      Brokers' Fees. Neither Seller nor any of its
Affiliates has any liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this
Agreement for which Buyer could become liable or obligated.

                                     - 4 -

<PAGE>

                  (e)      Solvency. As of the date of this Agreement, and after
consummation of the transactions contemplated by this Agreement, Seller is not
insolvent or unable to pay its debts and has not made a general assignment with
or for the benefit of its creditors, and no proceeding under any bankruptcy,
insolvency or reorganization law has been commenced by or with respect to
Seller.

         3.2      Representations and Warranties Concerning the Assets. Seller
represents and warrants to Buyer as follows:

                  (a)      Title to the Assets. To Seller's Knowledge, the
Assets are free and clear of all Encumbrances, except for (i) Permitted
Encumbrances, (ii) Encumbrances that do not have a Material Adverse Effect, and
(iii) those listed and described in Schedule 3.2(a), which will be satisfied
from the sales proceeds of Seller and be released post-closing. Seller has
delivered or made available to Buyer Seller's Title Policies; and with respect
to the Mineral Properties not associated with the property covered by Seller's
Title Polices (the "Uninsured Mineral Properties"), Seller has delivered or made
available to Buyer all material (i) title reports, (ii) title insurance
policies, (iii) title commitments, (iv) title opinions and (v) title abstracts
relating to such Uninsured Mineral Properties, all of which is located in
Seller's office in Middlesboro, Kentucky (collectively Seller's Title Policies
and the additional information relating to the Uninsured Mineral Properties are
referred to as the "Title Information"). To Seller's Knowledge, all Title
Information is true and accurate except to the extent such inaccuracy or
inaccuracies in the aggregate would not have a Material Adverse Effect.

                  (b)      No Adverse Claims. To Seller's Knowledge, there are
no adverse claims to any of the Assets except for (i) Permitted Encumbrances,
(ii) those claims which would not have a Material Adverse Effect, and (iii)
those listed and described in Schedule 3.2(b). There are no eminent domain,
zoning or condemnation proceedings pending, or to Seller's Knowledge, threatened
against any of the Assets except such proceedings that would not have a Material
Adverse Effect.

                  (c)      Tax Matters. Except as would not have a Material
Adverse Effect:

                           (i)      There is no dispute or claim concerning any
Tax liability with respect to the Assets claimed or raised by any authority.

                           (ii)     There are no outstanding agreements or
waivers extending the statutory period of limitations applicable to any Tax
Returns required to be filed by or with respect to the Assets or for which Buyer
may be responsible.

                           (iii)    Seller has filed all Tax Returns with
respect to the Assets that were required to be filed and such Tax Returns (with
respect to such assets) are accurate in all material respects. All Taxes shown
as due with respect to the Assets on any such Tax Returns have been paid.

                                     - 5 -

<PAGE>

                           (iv)     No special assessments for improvements are
outstanding or have been completed as of the date of this Agreement with respect
to the Assets.

                  (d)      Litigation. None of the Assets (i) is subject to any
outstanding injunction, judgment, order, decree, ruling, or charge or (ii) is
the subject of any action, suit, proceeding, hearing, or investigation of, in,
or before any court or quasi-judicial or administrative agency of any federal,
state, local, or foreign jurisdiction, or is the subject of any pending or, to
Seller's Knowledge, threatened claim, demand, or notice of violation or
liability from any Person, except where any of the foregoing would not have a
Material Adverse Effect and except for those listed and described in Schedule
3.2(d).

                  (e)      Environmental Matters.

                           (i)      With respect to the Assets, to Seller's
Knowledge, Seller and each lessee of Seller is in compliance with all applicable
federal, state and local Laws (including common law) relating to the protection
of the environment as in effect on or before the date of this Agreement,
including the Surface Mining Control and Reclamation Act of 1977, 30 U.S.C.
section 1201 et seq., the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended, 42 U.S.C. section 9601, et seq.
("CERCLA"), the Resource Conservation and Recovery Act of 1976, as amended, 42
U.S.C. section 6901, et seq., the Clean Air Act, as amended, 42 U.S.C. section
7401, et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C.
section 1251, et seq., and the Oil Pollution Act of 1990, 33 U.S.C. section
2701, et seq. and the statutes, regulations, rules and orders of all agencies
responsible for supervision and enforcement of environmental and mining laws of
Tennessee, Kentucky, and West Virginia (collectively, the "Environmental Laws"
and individually an "Environmental Law"), except for such instances of
noncompliance that do not have a Material Adverse Effect.

                           (ii)     Seller has obtained all material licenses,
franchises, authorities, consents, and approvals, and has made all filings and
maintained all material information, documentation, and records, required of
Seller under applicable Laws including Environmental Laws with respect to the
Assets and the related business as it is presently conducted by Seller, and all
such permits, licenses, franchises, authorities, consents, approvals, and
filings remain in full force and effect, except for such matters that do not
have a Material Adverse Effect.

                           (iii)    Except as does not have a Material Adverse
Effect, (A) there are no pending or, to Seller's Knowledge, threatened claims,
demands, actions, administrative proceedings or lawsuits against Seller or its
predecessors in title with respect to the Assets under any Environmental Laws
and Seller has no Knowledge (without any obligation of due inquiry) of facts
which would give rise to the same and (B) none of the Assets are subject to any
outstanding injunction, judgment, order, decree or ruling under any
Environmental Laws.

                                     - 6 -

<PAGE>

                           (iv)     Seller has not received any notice that
Seller or its predecessors in title, with respect to the Assets, is or may be a
potentially responsible party under CERCLA or any analogous state law in
connection with any site actually or allegedly containing or used for the
treatment, storage or disposal of Hazardous Substances.

                  (f)      Leases. Except as set forth in Schedule 3.2(f), the
Leases are in full force and effect and each party thereto has performed all
material obligations required to be performed by it under such Leases, and is
not in default under any obligation of such Leases.

                  (g)      SDRA and MEA. The SDRA and MEA are in full force and
effect and each party thereto has performed all material obligations required to
be performed by it thereunder, and is not in default under any obligation of
such SDRA and MEA. The Leases include the Existing Mineral Leases, as such term
is defined in the SDRA, and except as set forth on Schedule 3.2(g), there are no
Additional Mineral Leases or Extended Mineral Leases, as such terms are defined
in the SDRA.

                                   ARTICLE 4
                     REPRESENTATIONS AND WARRANTIES OF BUYER

         4.1      Representations and Warranties of the Buyer. Buyer hereby
represents and warrants to Seller as follows:

                  (a)      Organization of the Buyer. Buyer is a limited
liability company duly organized, validly existing, and in good standing under
the Laws of the State of Delaware.

                  (b)      Authorization of Transaction. Buyer has full limited
liability company power and authority to execute and deliver this Agreement and
to perform its obligations under this Agreement. This Agreement constitutes the
valid and legally binding obligation of the Buyer, enforceable in accordance
with its terms and conditions, subject, however, to the effects of bankruptcy,
insolvency, reorganization, moratorium, or similar Laws affecting creditors'
rights generally and to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

                  (c)      Noncontravention. Neither the execution and delivery
of this Agreement, nor the consummation of the transactions contemplated hereby,
will (i) violate any statute, regulation, rule, injunction, judgment, order,
decree, ruling, charge, or other restriction of any Governmental Authority to
which Buyer is subject or any provision of its Organizational Documents or (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any Party the right to accelerate, terminate, modify,
or cancel, or require any notice, approval or consent under any agreement,
contract, lease, license, instrument, or other arrangement to which Buyer is a
party or by which it is bound or to which any of its assets is subject, except
for such

                                     - 7 -

<PAGE>

violations, defaults, breaches, or other occurrences that do not, individually
or in the aggregate, have a material adverse effect on the ability of Buyer to
consummate the transactions contemplated by this Agreement. Buyer need not give
any notice to, make any filing with, or obtain any authorization, consent, or
approval of any Governmental Authority in order to consummate the transactions
contemplated by this Agreement, except notices, filings, authorizations,
consents or approvals, the failure of which to make or obtain would not have a
Material Adverse Effect on the ability of Buyer to consummate the transactions
contemplated by this Agreement.

                  (d)      Brokers' Fees. Neither Buyer nor any of its
Affiliates has any liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this
Agreement for which Seller could become liable or obligated.

                  (e)      Solvency. As of the date of this Agreement, and after
consummation of the transactions contemplated by this Agreement, Buyer is not
insolvent or unable to pay its debts and has not made a general assignment with
or for the benefit of its creditors, and no proceeding under any bankruptcy,
insolvency or reorganization law has been commenced by or with respect to Buyer.

                                   ARTICLE 5
                             POST-CLOSING COVENANTS

         5.1      General. In case at any time after the Closing any further
action is necessary to carry out the purposes of this Agreement, each of the
Parties will take such further action (including the execution and delivery of
such further instruments and documents) as the other Party reasonably may
request, all at the sole cost and expense of the requesting Party (unless the
requesting Party is entitled to indemnification therefor under Article 6).

         5.2      Possession and Retention of and Access to the Records. On the
Closing Date, Buyer will take possession of the Records located at Seller's
office at Middlesboro, Kentucky. Seller (and its successors and assigns
including Ataya Hardwoods, LLC) may retain or at any time make (at its own
expense) a copy of the Records to the extent that they relate to the former
operation of its business or the operation of the surface property conveyed by
Seller to Ataya Hardwoods, LLC. Buyer agrees to (a) hold the Records and not to
destroy or dispose of any portion thereof for a period of 10 years from the
Closing Date or such longer period as may be required by Law, provided that at
any time after such period, if it desires to destroy or dispose of such Records,
it will first offer in writing at least 60 days before such destruction or
disposition to surrender them to Seller and if Seller or its successors or
assigns do not accept such offer within 60 days after receipt of such offer,
Buyer may take such action, and (b) following the Closing Date, afford Seller
and Seller's successors and assigns and any of their agents, employees,
accountants, and counsel, during normal business hours, upon reasonable request,
at any time, full access to the Records and to Buyer's employees

                                     - 8 -

<PAGE>

at no cost to Seller (other than for reasonable out-of-pocket expenses);
provided that such access will not be construed to require the disclosure of
Records that would cause the waiver of any attorney-client, work product or like
privilege; provided, further, that in the event of any litigation nothing herein
shall limit any Party's rights of discovery under applicable Law. Nothing herein
shall impose any liability upon Buyer in the event of destruction or loss of any
Records as a result of casualty.

         5.3      Release of Encumbrances. Seller shall cause releases of the
Encumbrances listed in Schedule 3.2(a) to be executed and delivered by the
holder thereof or the party benefited or secured thereby within 10 days of
Closing and to be recorded in the appropriate offices as soon as reasonably
possible thereafter.

                                   ARTICLE 6
                       REMEDIES FOR BREACHES OF AGREEMENT

         6.1      Survival of Representations, Warranties and Certain Covenants.
The representations and warranties of Seller contained in Article 3 and in any
documentation or certificates delivered pursuant to Sections 2.5(a), 2.5(d), 2.5
(h) and 2.5(l) shall survive the Closing under this Agreement for a period of 2
years after the Closing Date except for those relating to Taxes which shall
survive for 6 years. The representations and warranties of Buyer contained in
Article 4 and in any documentation or certificates delivered pursuant to Section
2.5 shall survive the Closing for a period of 2 years after the Closing Date.
All other representations and warranties of the Parties shall terminate upon the
Closing. The covenants contained in Articles 5 and 7 and in Section 8.1 of this
Agreement to be performed after the Closing shall survive the Closing
indefinitely.

         6.2      Indemnification Provisions for Benefit of the Buyer.

                  (a)      Seller shall indemnify and hold Buyer Indemnitees
harmless from and against any and all Adverse Consequences whatsoever arising
out of or resulting from:

                           (i)      Any breach of warranty or misrepresentation
by Seller or the nonperformance of any covenant or obligation to be performed by
Seller to the extent that and only to the extent that (A) there is an applicable
survival period pursuant to Section 6.1 with respect to such warranty,
representation, covenant, or obligation; and that (B) Buyer makes a written
claim for indemnification against Seller pursuant to Section 8.6 within such
survival period;

                           (ii)     Any liability or claim arising out of the
ownership, conduct or operation of the Assets prior to the Closing Date, to the
extent (A) there is an applicable survival period pursuant to Section 6.1 with
respect to such liability or claim; and that (B) Buyer makes a written claim for
indemnification against Seller pursuant to Section 8.6 within such survival
period; and

                                     - 9 -

<PAGE>

                           (iii)    Any claim which may be asserted against
Buyer or any of the Assets by any third party or any of Seller's current or
former employees, independent contractors, their employees, or agents with
respect to liabilities incurred by or on Seller's behalf prior to the Closing
Date, whether covered by a collective bargaining agreement or not, including
labor costs, severance pay, pension benefits, employee benefits, workers'
compensation, vacation and holiday benefits, sick pay, multiemployer withdrawal
liability, any and all employee benefits, and any other costs associated
therewith.

                  (b)      Limitations of Indemnification. The following
limitations shall apply with regard to Seller's obligations to indemnify Buyer
Indemnitees pursuant to this Section 6.2:

                           (i)      Seller's liability under this Agreement
shall not exceed the Purchase Price paid in accordance with Section 2.2 (the
"Liability Cap"). The limitations on Seller's indemnification obligations set
forth in the prior sentence shall not apply to losses resulting from fraud or
willful misconduct by Seller or its Affiliates.

                           (ii)     Seller will have no liability under this
Agreement, unless and until the aggregate Adverse Consequences for which Buyer
Indemnitees are entitled to recover under this Agreement exceeds one percent
(1%) of the Purchase Price paid in accordance with Section 2.2 (the "Threshold
Amount"); provided, however, once such amount exceeds the Threshold Amount,
Buyer Indemnitees will be entitled to recover all amounts to which they are
entitled in excess of the Threshold Amount, subject to the limitations set forth
in (i) above.

                           (iii)    Buyer acknowledges and agrees that the
indemnification provisions in this Article 6 shall be the exclusive remedies of
Buyer Indemnitees with respect to the transactions contemplated by this
Agreement.

                  (c)      Limited Guaranty. Begley Properties, LLC and Baillie
Properties, LP, hereby jointly and severally guarantee the collection by Buyer
of any amounts due from Seller pursuant to this Section 6.2.

         6.3      Indemnification Provisions for Benefit of Seller.

                  (a)      Buyer shall indemnify and hold Seller Indemnitees
harmless from and against all Adverse Consequences whatsoever arising out of or
resulting from:

                           (i)      Any breach of warranty or misrepresentation
by Buyer contained herein, or the non-performance of any covenant or obligation
to be performed by Buyer to the extent that and only to the extent that (A)
there is an applicable survival period pursuant to Section 6.1 with respect to
such warranty, representation, covenant, or obligation; and that (B) Seller
makes a written claim for indemnification against Buyer pursuant to Section 8.6
within such survival period; or

                                     - 10 -

<PAGE>

                           (ii)     Any liability arising out of the ownership,
conduct or operation of the Assets from and after the Closing Date.

                  (b)      Limitations of Indemnification. The following
limitations shall apply with regard to Buyer's obligations to indemnify Seller
Indemnitees pursuant to this Section 6.3:

                           (i)      Buyer's and its Affiliates' liability under
this Agreement shall not exceed the Liability Cap. The limitations on Buyer's
indemnification obligations set forth in the prior sentence shall not apply to
losses resulting from fraud or willful misconduct by Buyer.

                           (ii)     Buyer and its Affiliates will have no
liability for any Adverse Consequences, unless and until the aggregate Adverse
Consequences for which Seller Indemnitees are entitled to recover under this
Agreement exceeds the Threshold Amount; provided, however, once such amount
exceeds the Threshold Amount, Seller Indemnitees will be entitled to recover all
amounts to which they are entitled in excess of the Threshold Amount, subject to
the limitations set forth in (i) above.

                           (iii)    Seller acknowledges and agrees that the
indemnification provisions in this Article 6 shall be the exclusive remedies of
the Seller, Seller Indemnitees and their Affiliates with respect to the
transactions contemplated by this Agreement.

         6.4      Matters Involving Third Parties.

                  (a)      If any third party shall notify any Party (the
"Indemnified Party") with respect to any matter (a "Third Party Claim") that may
give rise to a right to claim for indemnification against the other Party (the
"Indemnifying Party") under Section 6.2 or Section 6.3, then the Indemnified
Party shall promptly (and in any event within 5 business days after receiving
notice of the Third Party Claim) notify the Indemnifying Party thereof in
writing.

                  (b)      The Indemnifying Party will have the right to assume
and thereafter conduct the defense of the Third Party Claim with counsel of its
choice reasonably satisfactory to the Indemnified Party; provided, however, that
the Indemnifying Party will not consent to the entry of any judgment or enter
into any settlement with respect to the Third Party Claim without the prior
written consent of the Indemnified Party (not to be withheld unreasonably)
unless the judgment or proposed settlement involves only the payment of money
damages not exceeding the Liability Cap (provided, however, that any such money
damages will be immediately paid in full by the Indemnifying Party without any
further payment or other action required of the Indemnified Party), and does not
impose an injunction or other equitable relief upon the Indemnified Party.

                  (c)      Unless and until the Indemnifying Party assumes the
defense of the Third Party Claim as provided in subsection 6.4(b), the
Indemnified Party

                                     - 11 -

<PAGE>

may defend against the Third Party Claim in any manner it reasonably may deem
appropriate.

                  (d)      In no event will the Indemnified Party consent to the
entry of any judgment or enter into any settlement with respect to the Third
Party Claim without the prior written consent of the Indemnifying Party which
consent shall not be withheld unreasonably.

         6.5      Determination of Amount of Adverse Consequences. The Adverse
Consequences giving rise to any indemnification obligation hereunder shall be
limited to the actual loss suffered by the Indemnified Party (i.e., reduced by
any insurance proceeds or other payment or recoupment received, realized or
retained by the Indemnified Party as a result of the events giving rise to the
claim for indemnification), net of any reduction in Taxes of the Indemnified
Party (or the affiliated group of which it is a member) occasioned by such loss
or damage. Upon the request of the Indemnifying Party, the Indemnified Party
shall provide the Indemnifying Party with information sufficient to allow the
Indemnifying Party to calculate the amount of the indemnity payment in
accordance with this Section 6.5. An Indemnified Party shall take all reasonable
steps to mitigate damages in respect of any claim for which it is seeking
indemnification and shall use reasonable efforts to avoid any costs or expenses
associated with such claim and, if such costs and expenses cannot be avoided, to
minimize the amount thereof.

         6.6      Tax Treatment of Indemnity Payments. All indemnification
payments made under this Agreement, including any payment made under this
Article 6, shall be treated as purchase price adjustments for Tax purposes.

                                    ARTICLE 7
                                   TAX MATTERS

         7.1      Post-Closing Tax Returns. Buyer shall prepare or cause to be
prepared and file or cause to be filed any Post-Closing Tax Returns with respect
to the Assets. Except as set forth in Section 7.3 below, Buyer shall pay (or
shall cause to be paid) any Taxes due with respect to such Post-Closing Tax
Returns.

         7.2      Pre-Closing Tax Returns. Seller shall prepare or cause to be
prepared and file or cause to be filed all Pre-Closing Tax Returns with respect
to the Assets. Seller shall pay (or cause to be paid) any Taxes due with respect
to such Tax Returns.

         7.3      Allocation of Ad Valorem Taxes. Seller shall be responsible
for and shall pay (or cause to be paid) all ad valorem real property taxes
(including unmined mineral taxes) on the Assets assessed on or before December
31, 2003.

         7.4      Claims for Refund. Buyer shall not file any claim for refund
of taxes with respect to the Assets for whole or partial taxable periods
beginning before the Closing Date.

                                     - 12 -

<PAGE>

         7.5      Cooperation on Tax Matters.

                  (a)      Buyer and Seller shall cooperate fully, as and to the
extent reasonably requested by the other, in connection with the filing of Tax
Returns and any audit, litigation or other administrative or judicial proceeding
relating to liability for Taxes and making employees available on a mutually
convenient basis to provide additional information and explanation of any
material provided hereunder. Buyer and Seller shall (i) retain all books and
records that are in its possession with respect to Tax matters pertinent to the
Assets relating to any whole or partial taxable period beginning before the
Closing Date until the expiration of the statute of limitations (and, to the
extent notified by Buyer or Seller, any extensions thereof) of the respective
taxable periods, and to abide by all record retention agreements entered into
with any taxing authority, and (ii) give the other Party reasonable written
notice prior to transferring, destroying or discarding any such books and
records and, if the other Party so requests, Buyer or Seller, as the case may
be, shall allow the other party to take possession of such books and records.

                  (b)      Buyer and Seller further agree, upon request, to use
their commercially reasonable efforts to obtain any certificate or other
document from any Governmental Authority or any other Person as may be necessary
to mitigate, reduce or eliminate any Tax that could be imposed upon the Assets
(including, but not limited to, with respect to the transactions contemplated
hereby).

         7.6      Certain Taxes. Seller and Buyer shall cooperate in the
preparation, execution, and filing of all returns, questionnaires, applications
or other documents regarding any transfer (including stock transfer), recording,
documentary, sales, use, stamp, registration and other similar taxes and fees
("Transfer Taxes") that become payable in connection with the transaction
contemplated by this Agreement, and Seller and Buyer shall use their
commercially reasonable efforts to obtain any certificate, document or take
other action to reduce or eliminate any such Transfer Tax. Buyer will file all
necessary tax returns and other documentation with respect to all such Transfer
Taxes, and, if required by applicable Law, Seller will, and will cause its
Affiliates to, join in the execution of any such tax returns and other
documentation. Notwithstanding anything set forth in this Agreement to the
contrary, Seller will be obligated to bear and shall pay at Closing, and shall
indemnify, defend and hold Buyer harmless for, any Transfer Taxes incurred in
connection with the transactions contemplated by this Agreement, except that
Buyer shall pay any costs for recordation of the Deeds.

         7.7      Audits. Seller and Buyer shall provide prompt written notice
to the other of any pending or threatened Tax audit, assessment or proceeding
that it becomes aware of related to the Assets for whole or partial periods for
which it may be indemnified by the other party hereunder or for which the other
party may be responsible. Such notice shall contain factual information (to the
extent known) describing the asserted Tax liability in reasonable detail and
shall be accompanied by copies of any notice or other document received from any
tax authority in respect of any such matters. If an Indemnified Party has
knowledge of an asserted Tax liability with respect to a matter for which it may
be indemnified hereunder and such party fails to give the

                                     - 13 -

<PAGE>

Indemnifying Party prompt notice of such asserted Tax liability, then (a) if the
Indemnifying Party is precluded by the failure to give prompt notice from
contesting the asserted Tax liability in any forum, the Indemnifying Party shall
have no obligation to indemnify the Indemnified Party for any Taxes arising out
of such asserted Tax liability, and (b) if the Indemnifying Party is not so
precluded from contesting, but such failure to give prompt notice results in a
detriment to the Indemnifying Party, then any amount which the Indemnifying
Party is otherwise required to pay the Indemnified Party pursuant to this
Section shall be reduced by the amount of such detriment, provided, the
Indemnified Party shall nevertheless be entitled to full indemnification
hereunder to the extent, and only to the extent, that such party can establish
that the Indemnifying Party was not prejudiced by such failure. This Section 7.7
shall control the procedure for Tax indemnification matters to the extent it is
inconsistent with any other provision of this Agreement.

         7.8      Control of Proceedings. The party responsible for the Tax
under this Agreement shall control audits and disputes related to such Taxes
(including action taken to pay, compromise or settle such Taxes). Reasonable out
of pocket expenses with respect to such contests shall be borne by Seller and
Buyer in proportion to their responsibility for such Taxes as set forth in this
Agreement. Except as otherwise provided by this Agreement, the non-controlling
Party shall be afforded a reasonable opportunity to participate in such
proceedings at its own expense.

         7.9      Powers of Attorney. Buyer shall provide Seller and its
Affiliates with such powers of attorney or other authorizing documentation as
are reasonably necessary to empower them to execute and file Tax Returns they
are responsible for hereunder, file refund and equivalent claims for Taxes they
are responsible for, and contest, settle, and resolve any audits and disputes
that they have control over under Section 7.8 (including any refund claims which
turn into audits or disputes).

         7.10     Remittance of Refunds. If Buyer or any Affiliate of Buyer
receives a refund of any Taxes attributable to a Pre-Closing Tax Period that
Seller is responsible for hereunder, or if Seller or any Affiliate of Seller
receives a refund of any Taxes attributable to a Post-Closing Tax Period that
Buyer is responsible for hereunder, the Party receiving such refund shall,
within 15 days after receipt of such refund, remit it to the party who has
responsibility for such Taxes hereunder, provided that notwithstanding anything
herein to the contrary, if Buyer or any Affiliate of Buyer receives any refund
arising out of the ownership or operation of the Assets prior to Closing, Buyer
shall, within 15 days after receipt of such refund, remit it to Seller. For the
purpose of this Section 7.10, the term "refund" shall include a reduction in Tax
and the use of an overpayment as a credit or other tax offset, and receipt of a
refund shall occur upon the filing of a return or an adjustment thereto using
such reduction, overpayment or offset or upon the receipt of cash.

                                     - 14 -

<PAGE>

         7.11     Purchase Price Allocation. Prior to Closing, Seller and Buyer
shall attempt to agree upon the allocation of the Purchase Price among the
Assets for all purposes (including Tax and financial accounting purposes). The
Buyer, Seller and their applicable Affiliates will file all Tax Returns
(including amended Tax Returns and claims for refund) and information reports in
a manner consistent with such agreed upon allocation.

         7.12     Closing Tax Certificate. At the Closing, Seller shall deliver,
to Buyer a certificate signed under penalties of perjury (i) stating that it is
not a foreign corporation, foreign partnership, foreign trust or foreign estate,
(ii) providing its U.S. Employer Identification Number and (iii) providing its
address, all pursuant to Section 1445 of the Code. At the Closing, Buyer shall
deliver to Seller a statement providing its U.S. Employment Identification
Number and its address.

                                    ARTICLE 8
                                  MISCELLANEOUS

         8.1      Insurance. Buyer acknowledges and agrees that, following the
Closing, the Insurance Policies of Seller and its Affiliates may be terminated
or modified to exclude coverage of all or any portion of the Assets by Seller or
its Affiliates and, as a result, Buyer acknowledges that the Assets will not be
insured by Seller. Buyer further acknowledges that Seller only maintained such
Insurance Policies (including self insurance and deductible levels) that they
deemed necessary in their sole discretion or that were required by Law.
Notwithstanding this Section 8.1, if any claims are made or losses occur prior
to the Closing Date that relate solely to the Assets and such claims, or the
claims associated with such losses, properly may be made against the policies
retained by Seller or its Affiliates pursuant to Section 8.1 or under policies
otherwise retained by Seller or its Affiliates after the Closing, then, subject
to any limitations under the Insurance Policies (including time restrictions on
"claims made" policies), Seller shall use its reasonable commercial efforts so
that Buyer can file, notice, and otherwise continue to pursue these claims
pursuant to the terms of such policies; however nothing in this Agreement shall
require Seller to maintain or to refrain from asserting claims against or
exhausting any retained policies and Seller shall not be required to proceed
against any direct or indirect self-insured primary insurance programs or
policies of, or maintained by Seller or any of its Affiliates, including
arrangements with carriers for claims administration service under cost-plus
reimbursement agreements, assumed retention, deductible or retrospective rating
plans or other plans or arrangements to the extent that risk of loss thereunder
is ultimately assumed or paid by such Seller.

         8.2      Press Releases and Public Announcements. No Party shall issue
any press release or make any public announcement relating to the subject matter
of this Agreement without the prior written approval of the other Party;
provided that either Party may make any public disclosure it believes in good
faith is required by applicable Law or any listing or trading agreement
concerning its publicly traded securities (in which case the disclosing Party
will advise the other Party before making the disclosure).

                                     - 15 -

<PAGE>

         8.3      No Third Party Beneficiaries. Except as otherwise specifically
provided in this Agreement, nothing in this Agreement shall confer any rights or
remedies upon any Person other than the Parties and their respective successors
and permitted assigns.

         8.4      Succession and Assignment. This Agreement shall be binding
upon and inure to the benefit of the Parties named herein and their respective
successors and permitted assigns. No Party may assign either this Agreement or
any of its rights, interests or obligations hereunder without the prior written
approval of the other Party. Notwithstanding the foregoing provisions of this
Section 8.4, the Parties acknowledge that following the Closing, without consent
of Seller, Buyer may freely assign or transfer any or all of its rights with
respect to the Records, provided that any such assignment or transfer by Buyer
shall provide that each assignee or transferee shall be entitled to the rights
and subject to the obligations to which Buyer was entitled or subject pursuant
to Section 5.2 of this Agreement.

         8.5      Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original but which together will constitute one
and the same instrument.

         8.6      Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given one business day
after it is sent by overnight expedited courier or two business days after it is
sent by registered or certified mail, return receipt requested, postage prepaid,
and addressed to the intended recipient as set forth below:

                                     - 16 -
<PAGE>

If to the Buyer:                           With copy to:

WPP LLC                                    WPP LLC
c/o Natural Resource Partners L.P.         c/o Natural Resource Partners L.P.
P.O. Box 2827                              Suite 3600
Huntington, WV 25727-2827                  601 Jefferson Street
Attn: Nick Carter                          Houston, TX 77002
Tel: (304) 522-5757                        Attn: Wyatt Hogan
Fax: (304) 522 5401                        Tel:  (713) 751-7516
                                           Fax:  (713) 751-7563

If to Seller:                              With copies to:

BLC Properties LLC                         Cunnagin & Cunnagin
c/o Begley Properties, LLC                 201 South Main Street
2001 Russell Dyche Memorial Highway        London, Kentucky 40741
P.O. Box 2800                              Attn:  Willis C. Cunnagin, Esq.
London, Kentucky 40741                     FAX:   (606) 878-2711
Attn: Mr. James Begley                     Phone: (606) 864-7347
Fax: (606) 877-1230
Phone: (606) 877-1228                      and:

and                                        Hodgson Russ LLP
                                           One M & T Plaza, Suite 2000
BLC Properties LLC                         Buffalo, NY 14203-2391
c/o Baillie Lumber Company                 Attn:  Todd M. Joseph, Esq.
P.O. Box 6                                 FAX:   (716) 819-4638
4002 Legion Drive                          Phone: (716) 848-1404
Hamburg, New York 14075-0006
Attn.:  Mr. Jeffrey S. Meyer
Fax:    (716) 648-6107
Phone:  (800) 950-2850

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the addresses set forth above using any
other means (including personal delivery, expedited overnight courier, messenger
service, telecopy, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Party
notice in the manner herein set forth.

                                     - 17 -
<PAGE>

         8.7      Personnel. Seller acknowledges that Buyer anticipates offering
employment to one or more persons currently employed by Seller in Seller's
office in Middlesboro, Kentucky. Seller agrees that, as of the Closing Date, it
will terminate the employment of any such employees identified by Buyer and will
terminate the participation by any such persons in all employee benefit plans of
Seller as of the Closing Date.

         8.8      Financial Statements of Seller. Seller covenants and agrees to
use its best efforts to prepare financial statements in accordance with GAAP and
in accordance with Regulation S-X of the Securities and Exchange Commission for
Seller's "Mineral Business" being acquired by Buyer for the most recent three
fiscal years ending prior to the Closing Date, in such form that such statements
can be audited by Duncan, Smith & Stilz, P.S.C., Seller's independent certified
public accountants, and to cause such accountants to issue to Seller an
unqualified opinion with respect to such financial statements (such statements
and related opinions being hereinafter referred to as the "Audited Financial
Statements"). Seller shall, within three business days after the date of this
Agreement, engage for that purpose, and shall direct Duncan, Smith & Stilz,
P.S.C. to use its best efforts to assist in the preparation of the Audited
Financial Statements so that the Audited Financial Statements can be completed
and delivered to Buyer not later than 45 days following the Closing Date. Such
engagement shall include the consent of Duncan, Smith & Stilz, P.S.C. that the
Audited Financial Statements may be relied upon by Buyer and its underwriters
(a) to prepare and file reports under the Securities and Exchange Act of 1934,
as needed, and (b) in connection with any financing or public offering of
securities by Buyer or any of its affiliates. Buyer may, at its option and
expense, engage its own certified public accountants, Ernst & Young, to monitor
and review the progress of the production of the Audited Financial Statements.

         8.9      Governing Law. This Agreement shall be governed by and
construed in accordance with the Laws of the Commonwealth of Kentucky without
giving effect to any choice or conflict of law provision or rule (whether of the
Commonwealth of Kentucky or any other jurisdiction) that would cause the
application of the Laws of any jurisdiction other than the Commonwealth of
Kentucky.

         8.10     Consent to Jurisdiction and Service of Process; Appointment of
Agent for Service of Process. EACH PARTY TO THIS AGREEMENT HEREBY CONSENTS TO
THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF
KENTUCKY AND ANY KENTUCKY STATE COURT LOCATED IN LONDON, KENTUCKY AND
IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY, OR ANY BUSINESS OR OTHER
DISPUTES BETWEEN THE PARTIES (WHETHER SUCH ACTIONS OR PROCEEDINGS ARE BASED IN
STATUTE, TORT, CONTRACT OR OTHERWISE), SHALL BE LITIGATED IN SUCH COURTS. EACH
PARTY (A) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS
FOR SUCH ACTIONS OR PROCEEDINGS, (B) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR
DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY
SUCH COURT, AND

                                     - 18 -
<PAGE>

(C) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR PROCEEDING IN ANY COURT
OTHER THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE
JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM
NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE
JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS. A COPY
OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES SHALL BE MAILED BY REGISTERED
MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY
APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF
SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A PARTY REFUSES TO ACCEPT SERVICE,
EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL,
RETURN RECEIPT REQUESTED, SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN
SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
BY LAW.

         8.11     Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT
HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS
BEING ESTABLISHED. EACH PARTY ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON
SUCH BOND THAT MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF THE OTHER PARTY. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND
ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY ACKNOWLEDGES THAT THIS
WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP THAT EACH
HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH
WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY
FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING
THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE
TRANSACTION CONTEMPLATED HEREBY. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY
BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. ACCORDINGLY, EACH PARTY
ACKNOWLEDGES THAT IT HAS WAIVED ITS RIGHT TO A JURY

                                     - 19 -
<PAGE>

TRIAL. EACH PARTY HAS DISCUSSED THIS AGREEMENT WITH ITS COUNSEL AND AGREES TO BE
BOUND BY ITS TERMS.

         8.12     Entire Agreement. This Agreement (including the documents
referred to in this Agreement) constitutes the entire agreement between the
Parties and supersedes any prior understandings, agreements, or representations
by or between the Parties, written or oral, to the extent they have related in
any way to the subject matter of this Agreement. Neither this Agreement nor any
amendment of any provision of this Agreement shall be valid unless the same
shall be in writing and signed by Buyer and Seller.

         8.13     Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

         8.14     Transaction Expenses. Each of Buyer and the Seller will bear
its own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby.

                                     - 20 -
<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date first above written.

                                    WPP LLC, a Delaware limited liability
                                    company

                                    By NRP (Operating) LLC, its sole managing
                                    member,

                                    By:/s/ Nick Carter
                                       ------------------------------------
                                    Title: President

                                    BLC Properties LLC, a Delaware limited
                                    liability company

                                    By Baillie Properties, LP, its Manager

                                    By: /s/ Jeffrey S. Meyer
                                       ------------------------------------
                                    Title: President

With respect to Section 6.2(c) only:

Begley Properties, LLC

By: /s/ James Begley
   -------------------------------
Title: Member

Baillie Properties, LP

By: /s/ Jeffrey S. Meyer
   -------------------------------
Title: President.

                                     - 21 -
<PAGE>

                                    EXHIBIT A
                         DEFINITIONS AND INTERPRETATIONS

         Definitions. Unless otherwise provided to the contrary in this
Agreement, capitalized terms in this Agreement shall have the following
meanings:

         1.       "Adverse Consequences" means all actions, suits, proceedings,
hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs,
amounts paid in settlement, liabilities, obligations, Taxes, liens, losses,
expenses, and fees, including court costs and reasonable attorneys' fees and
expenses, but excluding lost profits, punitive, exemplary, special or
consequential damages.

         2.       "Affiliate" means, with respect to any specified Person, any
other person which directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlling," "controlled by" and "under common
control with"), as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise.

         3.       "Agreement" has the meaning set forth in the preface.

         4.       "Assets" means all of the items listed in Section 2.1.

         5.       "Buyer" has the meaning set forth in the preface.

         6.       "Buyer Indemnitees" means, collectively, Buyer and its
Affiliates and its and their members, managers, officers, directors, employees,
agents and representatives.

         7.       "Closing" has the meaning set forth in Section 2.3.

         8.       "Closing Date" means January 2, 2004.

         9.       "Code" means the Internal Revenue Code of 1986, as amended, or
any successor Law.

         10.      "Effective Time" shall have the meaning set forth in Section
2.4.

         11.      "Encumbrance" means any mortgage, pledge, lien, encumbrance,
servitude, restriction, reservation, easement, right-of-way, charge, other
security interest, including any and all coal or mineral leases or surface
leases on any Assets and including rights or obligations under any collective
bargaining agreement.

                                     - 22 -
<PAGE>

         12.      "Environmental Law" or "Environmental Laws" has the meaning
set forth in Section 3.2(e)(i).

         13.      "Governmental Authority" means the United States and any
state, county, city or other political subdivision, agency, court or
instrumentality.

         14.      "Hazardous Substance" means any material defined as a
"hazardous substance" or "hazardous waste" under any Environmental Law.

         15.      "Indemnified Party" has the meaning set forth in Section
6.4(a).

         16.      "Indemnifying Party" has the meaning set forth in Section
6.4(a).

         17.      "Insurance Policies" means those material policies of
insurance that Seller or any of their Affiliates maintained with respect to the
Assets prior to Closing.

         18.      "Knowledge" means, in the case of Seller, the actual knowledge
of James Begley and Jeffrey S. Meyer, who are the executive officers of Seller,
after reasonable inquiry of those employees of Seller who have or should have
knowledge concerning or relating to the Assets, and, in the case of Buyer, the
actual knowledge of Nick Carter, Kevin Wall, Paul Sebastian and Wyatt Hogan upon
due inquiry.

         19.      "Laws" means any statute, code, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any applicable
Governmental Authority.

         20.      "Leases" means all leases of any of the minerals, servitudes,
easements, roads, rights of access, ingress, egress and rights of way relating
or appurtenant to or useful in connection with the Mineral Properties and
Surface Property, including those coal leases and oil and gas leases described
or listed in Schedule 2.1(c), which is attached hereto and made a part hereof.

         21.      "Liability Cap" has the meaning set forth in Section 6.2(b).

         22.      "Material Adverse Effect" means any change or effect that,
individually or in the aggregate with other changes or effects, is materially
adverse to the ownership or value of the Assets taken as a whole, provided that
in determining whether a Material Adverse Effect has occurred, the following
changes or effects shall not be considered: (i) the coal mining industry
generally (including, but not limited to, the price of coal and the costs
associated with the mining, production and delivery of coal); (ii) United States
or global economic conditions or financial markets in general, including changes
in interest rates; (iii) the transactions contemplated by this Agreement; and
(iv) changes in Law, or any judgments, orders or decrees that apply generally to
similarly situated persons.

         23.      "MEA" has the meaning set forth in the recitals.

                                     - 23 -
<PAGE>

         24.      "Mineral Properties" has the meaning set forth in the
Recitals.

         25.      "Obligations" means duties, liabilities and obligations,
whether vested, absolute or contingent, known or unknown, asserted or
unasserted, accrued or unaccrued, liquidated or unliquidated, due or to become
due, and whether contractual, statutory or otherwise.

         26.      "Ordinary Course of Business" means the ordinary course of
business in all material respects consistent with the affected party's past
custom and practice (including with respect to quantity and frequency).

         27.      "Organizational Documents" means the articles of
incorporation, certificate of incorporation, charter, bylaws, articles or
certificate of formation, regulations, operating agreement, certificate of
limited partnership, partnership agreement, and all other similar documents,
instruments or certificates executed, adopted, or filed in connection with the
creation, formation, or organization of a Person, including any amendments
thereto.

         28.      "Party" and "Parties" have the meanings set forth in the
preface.

         29.      "Permitted Encumbrances" means any of the following: (i) any
liens for Taxes and assessments not yet due and payable or, if due and payable,
that are being contested in good faith in the Ordinary Course of Business; (ii)
any obligations or duties vested in any municipality or other Governmental
Authority to regulate any Asset in any manner including obligations, duties,
restrictions and limitations under all applicable Laws (including zoning,
building and other similar Laws); (iii) liens reserved for Seller's performance
under leases, subleases, licenses and similar instruments; (iv) liens of
mechanics, materialmen, carriers, workmen, warehousemen, repairmen, or other
like Encumbrances arising or incurred in the Ordinary Course of Business and
securing obligations that are not delinquent or, if delinquent, that are being
contested in good faith by appropriate proceedings and have been properly bonded
over; (v) any Encumbrances listed on Schedule 3.2(a) which is attached hereto
and made a part hereof; (vi) Encumbrances and other conveyances (including
deeds, easements, leases and licenses) of record in the chain of title of Seller
or its Affiliates and their predecessors-in-title; (vii) Encumbrances apparent
from an inspection of the Assets; (viii) easements, rights-of-way, restrictions
and other similar encumbrances which, in the aggregate, are not substantial in
amount and which do not in any case materially detract from the value of the
property subject thereto as it is currently being used or materially interfere
with the ordinary conduct of the business; (ix) the Leases; (x) encroachments,
overlaps, and any other matters which would be disclosed by an accurate survey
and inspection of the Assets; (xi) any portion of the Assets which is or may be
within the bounds of any public roads, railroads, paths, rights-of-way, streets
and/or highways which would be disclosed by an inspection of the Assets; and
(xii) any matter disclosed by Seller's Title Policies. Notwithstanding the
above, paragraphs (v) and (vi) above does not include Encumbrances consisting of
mortgages, deeds of trust, pledges, liens or security interests.

                                     - 24 -
<PAGE>

         30.      "Person" means an individual or entity, including any
corporation, association, joint stock company, trust, joint venture, limited
liability company, unincorporated organization, or governmental entity (or any
department, agency or political subdivision thereof).

         31.      "Personal Property" means all personal property located in
Seller's office in Middlesboro, Kentucky and those vehicles listed on Schedule
2.1(e).

         32.      "Post-Closing Tax Period" means any Tax period ending after
the Closing Date.

         33.      "Post-Closing Tax Return" means any Tax Return that is
required to be filed with respect to a Post-Closing Tax Period.

         34.      "Pre-Closing Tax Period" means any Tax periods hereof ending
on or before the Closing Date.

         35.      "Pre-Closing Tax Return" means any Tax Return that is required
to be filed with respect to a Pre-Closing Tax Period.

         36.      "Purchase Price" has the meaning set forth in Section 2.2.

         37.      "Records" means all records in the possession of Seller
pertaining to the Mineral Properties and Surface Property, including all the
Title Information and maps, files, reserve information, historical production
information and other similar materials pertaining to such Assets, and true and
correct copies or originals of the Leases.

         38.      "Royalty Minerals" has the meaning set forth in the Recitals.

         39.      "Seller" has the meaning set forth in the preface.

         40.      "Seller Indemnitees" means, collectively, Seller and its
Affiliates and its and their members, managers, officers, directors, employees,
agents, and representatives.

         41.      "Seller's Title Policies" means the title insurance policies
issued to Seller by First American Title Insurance Company with respect to
certain of the Assets.

         42.      "Subsidiary" means, with respect to any relevant Person, any
other Person that is (directly or indirectly) controlled and more than 90%-owned
(directly or indirectly) by the relevant Person.

         43.      "Surface Property" has the meaning set forth in the Recitals.

         44.      "Tax" or "Taxes" means any state or local ad valorem
(including any unmined mineral taxes required to be assessed under KRS 132.820),
real property or personal property tax, including any interest, penalty or
addition thereto, whether disputed or not.

                                     - 25 -
<PAGE>

         45.      "Tax Return" means any return, declaration, report, claim for
refund, or information return or statement relating to Taxes, including any
schedule or attachment thereto, and including any amendment thereof and
including further any unmined mineral taxes return required to be filed under
KRS 132.820.

         46.      "Third Party Claim" has the meaning set forth in Section 6.4.

         47.      "Threshold Amount" has the meaning set forth in Section
6.2(b).

         48.      "Title Information" has the meaning set forth in Section
3.2(a).

         Interpretations. Unless expressly provided for elsewhere in this
Agreement, this Agreement shall be interpreted in accordance with the following
provisions:

         (a)      Whenever the context may require, any pronoun used in this
Agreement shall include the corresponding masculine, feminine, or neuter forms,
and the singular form of nouns, pronouns and verbs shall include the plural and
vice versa.

         (b)      If a word or phrase is defined, its other grammatical forms
have a corresponding meaning.

         (c)      A reference to a person, corporation, trust, estate,
partnership, or other entity includes any of them.

         (d)      The headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

         (e)      All references in this Agreement to articles, sections or
subdivisions thereof shall refer to the corresponding article, section or
subdivision thereof of this Agreement unless specific reference is made to such
articles, sections, or subdivisions of another document or instrument.

         (f)      A reference to any agreement or document (including, without
limitation, a reference to this Agreement) is to the agreement or document as
amended, varied, supplemented, novated or replaced, except to the extent
prohibited by this Agreement or that other agreement or document.

         (g)      No waiver by either Party of any default by the other Party in
the performance of any provision, condition or requirement herein shall be
deemed to be a waiver of, or in any manner release the other Party from,
performance of any other provision, condition or requirement herein, nor shall
such waiver be deemed to be a waiver of, or in any manner a release of, the
other Party from future performance of the same provision, condition or
requirement. Any delay or omission of either Party to

                                     - 26 -
<PAGE>

exercise any right hereunder shall not impair the exercise of any such right, or
any like right, accruing to it thereafter. The failure of either Party to
perform its obligations hereunder shall not release the other Party from the
performance of such obligations.

         (h)      A reference to any party to this Agreement or another
agreement or document includes the party's successors and assigns.

         (i)      A reference to legislation or to a provision of legislation
includes a modification or reenactment of it, a legislative provision
substituted for it and a regulation or statutory instrument issued under it.

         (j)      A reference to a writing includes a facsimile transmission of
it and any means of reproducing of its words in a tangible and permanently
visible form.

         (k)      The words "hereof," "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and article,
section, subsection, schedule and exhibit references are to this Agreement
unless otherwise specified.

         (l)      The word "including" shall mean including without limitation.

         (m)      The Exhibits identified in this Agreement are incorporated
herein by reference and made a part of this Agreement.

         (n)      The Parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the Parties and no presumption or burden of proof shall arise favoring or
disfavoring any Party by virtue of the authorship of any of the provisions of
this Agreement.

                                     - 27 -<PAGE>

                                                                     EXHIBIT 4.1

                                  DISCOVER BANK

                      Master Servicer, Servicer and Seller

                                       and

                         U.S. BANK NATIONAL ASSOCIATION

                                     Trustee

                       on behalf of the Certificateholders

                                SERIES SUPPLEMENT

                          Dated as of December 30, 2003

                                       to

                         POOLING AND SERVICING AGREEMENT

                           Dated as of October 1, 1993

                                   Subseries 1

                $1,100,000,000 Class A, Subseries 1 Certificates

                  $57,895,000 Class B, Subseries 1 Certificates

                                   Subseries 2

                 $750,000,000 Class A, Subseries 2 Certificates

                  $39,474,000 Class B, Subseries 2 Certificates

                          DISCOVER CARD MASTER TRUST I

                           SERIES 2003-4 CERTIFICATES

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                                        Page
                                                                                                                        ----
<S>                                                                                                                     <C>
SERIES TERM SHEET..........................................................................................................1
ANNEX......................................................................................................................1
SECTION 1.               Definitions.......................................................................................1
SECTION 2.               Subordination....................................................................................27
SECTION 3.               Representations and Warranties of the Sellers....................................................27
SECTION 4.               Representations and Warranties of Discover Bank as Master Servicer and Servicer..................28
SECTION 5.               Representations and Warranties of Other Servicers................................................29
SECTION 6.               Representations and Warranties of the Trustee....................................................29
SECTION 7.               Authentication of Certificates...................................................................29
SECTION 8.               Establishment and Administration of Investor Accounts and the Credit Enhancement Account.........29
SECTION 9.               Allocations of Collections.......................................................................34
SECTION 10.              Payments.........................................................................................46
SECTION 11.              Credit Enhancement...............................................................................49
SECTION 12.              Alternative Credit Support Election..............................................................50
SECTION 13.              Calculation of Investor Losses...................................................................51
SECTION 14.              Servicing Compensation...........................................................................52
SECTION 15.              Class Interest Rate Caps.........................................................................52
SECTION 16.              Class Interest Rate Swaps........................................................................54
SECTION 17.              Investor Certificateholders' Monthly Statement...................................................54
SECTION 18.              Master Servicer's Monthly Certificate............................................................54
SECTION 19.              Notices..........................................................................................54
SECTION 20.              Additional Amortization Events...................................................................55
SECTION 21.              Early Accumulation Events; Additional Amortization Events........................................55
SECTION 22.              Purchase of Investor Certificates and Series Termination.........................................56
SECTION 23.              Variable Accumulation Period.....................................................................57
SECTION 24.              Optional Accumulation Period Commencement........................................................57
SECTION 25.              Series Yield Factor..............................................................................58
SECTION 26.              Ratification of Pooling and Servicing Agreement..................................................58
SECTION 27.              Counterparts.....................................................................................58
SECTION 28.              Governing Law....................................................................................58
SECTION 29.              Intention of Parties.............................................................................58
SECTION 30.              Amendment for Sale Accounting Purposes...........................................................58
SECTION 31.              Election Under Delaware Asset-Backed Securities Facilitation Act.................................59
SECTION 32.              Issuance of Additional Certificates..............................................................58
</Table>

                                       i

<PAGE>

                                    EXHIBITS

EXHIBIT A-1:      Form of Investor Certificates, Subseries 1

EXHIBIT A-2:      Form of Investor Certificates, Subseries 2

EXHIBIT B-1:      Form of Certificateholders' Monthly Statement, Subseries 1

EXHIBIT B-2:      Form of Certificateholders' Monthly Statement. Subseries 2

EXHIBIT C-1:      Form of Master Servicer's Monthly Certificate, Subseries 1

EXHIBIT C-2:      Form of Master Servicer's Monthly Certificate. Subseries 2

                                       ii

<PAGE>

                          DISCOVER CARD MASTER TRUST I
                           SERIES 2003-4 CERTIFICATES

                  This Series of Master Trust Certificates is established
pursuant to Section 6.06 of that certain Pooling and Servicing Agreement, dated
as of October 1, 1993, as amended, by and between DISCOVER BANK (formerly
Greenwood Trust Company), a Delaware banking corporation ("Discover Bank"), as
Master Servicer, Servicer and Seller and U.S. BANK NATIONAL ASSOCIATION
(formerly First Bank National Association, successor trustee to Bank of America
Illinois, formerly Continental Bank, National Association) (the "Trustee"), as
Trustee (the "Pooling and Servicing Agreement"). This SERIES TERM SHEET and the
ANNEX attached hereto, by and among the Master Servicer, the Servicers, the
Sellers and the Trustee, constitute the SERIES SUPPLEMENT (the "Series
Supplement"). The Pooling and Servicing Agreement and this Series Supplement
together establish the Series of Master Trust Certificates to be known as the
DISCOVER CARD MASTER TRUST I, SERIES 2003-4 CERTIFICATES.

                  This Series is comprised of two Subseries (as such term is
defined in Section 1(b) of the Annex attached hereto), each of which shall be
treated as a separate Series of the Discover Card Master Trust I, as more fully
set forth in the definition of "Subseries." The Subseries of the Discover Card
Master Trust I, Series 2003-4 shall be known as "Subseries 1" and "Subseries 2."

                                SERIES TERM SHEET

                                   SUBSERIES 1

<Table>
<S>                                          <C>
Date of Series Term Sheet                    December 30, 2003.

Group                                        One.

Series Initial Investor Interest             $1,157,895,000.

Class Initial Investor Interest              Class A - $1,100,000,000; plus the face amount of any
of each Class of Investor Certificates       Class A Certificates issued in an increase of the
                                             Series Investor Interest pursuant to Section 32.

                                             Class B - $57,895,000; plus the face amount of any
                                             Class B Certificates issued in an increase of the
                                             Series Investor Interest pursuant to Section 32.

Class A Expected Final Payment Date          The Distribution Date in November 2008.

Class B Expected Final Payment Date          The Distribution Date in December 2008.

Type of Structure                            Bullet Maturity.

Certificate Rates                            Class A - LIBOR + 0.11% per annum, calculated on the
                                             basis of the actual number
</Table>

                                        1
<PAGE>

<Table>
<S>                                          <C>
                                             of days elapsed and a 360-day year. Class B - LIBOR +
                                             0.33% per annum, calculated on the basis of the
                                             actual number of days elapsed and a 360-day year.

Subseries                                    1 of 2.

Monthly Amortization Rate                    Not applicable.

Prepayment Calculation Table                 Not applicable.

Prepayment Determination Date                Not applicable.

Class Cap Rate                               Not applicable.

Class Maximum Rate                           Not applicable.

Class Interest Rate Swap                     Not applicable.

Interest Rate Swap Counterparty              Not applicable.

Swap Trust Rate                              Not applicable.

Swap Counterparty Rate                       Not applicable.

Monthly Swap Deposit                         Not applicable.

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

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

Series Cut-Off Date                          December 1, 2003.

Series Closing Date                          December 30, 2003.

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

Distribution Dates                           January 15, 2004 and the 15th day of each calendar
                                             month thereafter (or, if such day is not a Business
                                             Day, the next succeeding Business Day).

Interest Payment Dates                       Class A - The 15th day of each calendar month (or,
                                             if such day is not a Business Day, the next
                                             succeeding Business Day),
</Table>

                                        2
<PAGE>

<Table>
<S>                                          <C>

                                             commencing in January 2004. Class B - The 15th day of
                                             each calendar month (or, if such day is not a Business
                                             Day, the next succeeding Business Day), commencing in
                                             January 2004 .

Statement Dates                              Each Distribution Date, commencing in January 2004.

Principal Payment Date                       Not applicable.

Interest Calculation Dates                   Not applicable.

Accumulation Commencement Date               Not applicable.

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

Accumulation Amount                          (a) Through the Class A Expected Final Payment Date,
                                             (i) $91,666,666.67 or (ii) if the Master Servicer
                                             elects to delay commencement of the Accumulation Period
                                             in accordance with Section 23 or if an increase in the
                                             Series Investor Interest pursuant to Section 32 has
                                             occurred, the Class A Initial Investor Interest divided
                                             by the number of Distribution Dates from the
                                             commencement of the Accumulation Period through and
                                             including the Class A Expected Final Payment Date, and
                                             (b) thereafter, (i) $57,895,000 or (ii) if an increase
                                             in the Series Investor Interest pursuant to Section 32
                                             has occurred, the Class B Initial Investor Interest.
</Table>

                                                 3
<PAGE>

<Table>
<S>                                          <C>
Principal Commencement Date                  The first day of the Due Period related to the December
                                             2007 Distribution Date (or such later Distribution Date
                                             as the Master Servicer may elect in accordance with
                                             Section 23).

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

Controlled Liquidation Period                Not applicable.

Early Accumulation Period                    Not applicable.

Type of Credit Enhancement                   Cash collateral account.

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

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

Stated Class B Credit Enhancement Amount     $86,842,125.

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

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

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

Maximum Class B Credit Enhancement Amount    On any Distribution Date (a) prior to the making of an
                                             Effective Alternative Credit Support Election, the
                                             greatest of (i) $11,578,950, (ii) an amount equal to 1%
                                             of the Series Initial Investor Interest, and (iii) (x)
                                             if a Supplemental Credit Enhancement Event has not
                                             occurred, an amount equal to 7.5% of the Series
                                             Investor Interest as of the last day of the related Due
                                             Period, or (y) if a Supplemental Credit Enhancement
                                             Event has occurred, an amount equal to 8.0% of the
                                             Series Investor Interest as of the last day of the
                                             related Due
</Table>

                                        4
<PAGE>

<Table>
<S>                                          <C>
                                             Period or (b) subsequent to the making of an Effective
                                             Alternative Credit Support Election, the greatest of
                                             (i) $11,578,950, (ii) an amount equal to 1% of the
                                             Series Initial Investor Interest, and (iii) an amount
                                             equal to 12.5% of the Series Investor Interest as of
                                             the last day of the related Due Period; provided,
                                             however, that if an Amortization Event with respect to
                                             the Series established hereby occurs, the Maximum Class
                                             B Credit Enhancement Amount for each Distribution Date
                                             thereafter shall equal the Maximum Class B Credit
                                             Enhancement Amount for the Distribution Date
                                             immediately preceding the occurrence of the
                                             Amortization Event; and provided, further, that if a
                                             Credit Enhancement Drawing has been made, until such
                                             time as the Available Class B Credit Enhancement Amount
                                             has been reinstated in an amount at least equal to the
                                             amount of such Credit Enhancement Drawing, the Maximum
                                             Class B Credit Enhancement Amount shall be the Maximum
                                             Class B Credit Enhancement Amount as of the date of
                                             such Credit Enhancement Drawing.

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

Additional Credit Support Amount             The lesser of (x)(i) prior to the occurrence of a
                                             Supplemental Credit Enhancement Event, 5% of the Series
                                             Initial Investor Interest or (ii) following the
                                             occurrence of a Supplemental Credit Enhancement Event,
                                             4.5% of the Series Initial Investor Interest and (y)
                                             the difference between the Maximum Class B Credit
                                             Enhancement Amount (after giving effect to an
                                             Alternative Credit Support Election) and the Available
                                             Class B Credit Enhancement Amount (immediately before
                                             giving effect to the Alternative Credit Support
                                             Election).

Supplemental Credit Enhancement Amount       The lesser of (x)(i) prior to the occurrence of an
                                             Alternative Credit Support Election, 0.5% of the Series
                                             Initial Investor Interest or (ii) zero following the
                                             occurrence of an
</Table>

                                        5
<PAGE>

<Table>
<S>                                          <C>
                                             Alternative Credit Support Election and (y) the
                                             difference between the Maximum Class B Credit
                                             Enhancement Amount (after giving effect to the
                                             occurrence of a Supplemental Credit Enhancement Event)
                                             and the Available Class B Credit Enhancement Amount
                                             (immediately before giving effect to the occurrence of
                                             a Supplemental Credit Enhancement Event).

Initial Subordinated Amount                  $144,736,875.

Additional Subordinated Amount               Prior to the occurrence of a Supplemental Credit
                                             Enhancement Event, 5% of the Series Initial Investor
                                             Interest and following the occurrence of a Supplemental
                                             Credit Enhancement Event, 4.5% of the Series Initial
                                             Investor Interest.

Supplemental Subordinated Amount             Prior to the effectiveness of an Alternative Credit
                                             Support Election, 0.5% of the Series Initial Investor
                                             Interest and zero following the effectiveness of an
                                             Alternative Credit Support Election.

Series Buffer Amount                         Zero.

Group Buffer Amount                          Zero.

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

Supplemental Servicing Fee Percentage        Zero.

Amount of Additional Funds                   Initially, zero.

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

Series Termination Date                      The first Business Day following the Distribution Date
                                             in May 2011.

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

                                        6
<PAGE>

<Table>
<S>                                          <C>
                                             the Series Principal Funding Account as of such date of
                                             determination.

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

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

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

Bearer Certificates                          Not applicable.

Registered Certificates                      Class A and Class B Certificates.

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

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

Principal Paying Agent                       Class A - Not applicable.

                                             Class B - Not applicable.

Paying Agents                                Class A and Class B - the Corporate Trust Office of the
                                             Trustee.
</Table>

                                   SUBSERIES 2

<Table>
<Caption>
<S>                                          <C>
Date of Series Term Sheet                    December 30, 2003.

Group                                        One.

Series Initial Investor Interest             $789,474,000.

Class Initial Investor Interest of each      Class A - $750,000,000; plus the face amount of any
Class of Investor Certificates               Class A Certificates issued in an increase of the
                                             Series Investor Interest pursuant to Section 32.

                                             Class B - $39,474,000; plus the face amount of any
                                             Class B Certificates issued in an increase of the
                                             Series Investor Interest
</Table>

                                       7
<PAGE>

<Table>
<S>                                          <C>
                                             pursuant to Section 32.

Class A Expected Final Payment Date          The Distribution Date in November 2010.

Class B Expected Final Payment Date          The Distribution Date in December 2010.

Type of Structure                            Bullet Maturity.

Certificate Rates                            Class A - LIBOR + 0.18% per annum, calculated on the
                                             basis of the actual number of days elapsed and a
                                             360-day year.

                                             Class B - LIBOR + 0.43% per annum, calculated on
                                             the basis of the actual number of days elapsed and
                                             a 360-day year.

Subseries                                    2 of 2.

Monthly Amortization Rate                    Not applicable.

Prepayment Calculation Table                 Not applicable.

Prepayment Determination Date                Not applicable.

Class Cap Rate                               Not applicable.

Class Maximum Rate                           Not applicable.

Class Interest Rate Swap                     Not applicable.

Interest Rate Swap Counterparty              Not applicable.

Swap Trust Rate                              Not applicable.

Swap Counterparty Rate                       Not applicable.

Monthly Swap Deposit                         Not applicable.

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

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

Series Cut-Off Date                          December 1, 2003.

Series Closing Date                          December 30, 2003.

Date from which Interest for first           Series Closing Date.
Interest Payment Date Shall Accrue
</Table>

                                       8
<PAGE>

<Table>
<S>                                          <C>
Distribution Dates                           January 15, 2004 and the 15th day of each calendar
                                             month thereafter (or, if such day is not a Business
                                             Day, the next succeeding Business Day).

Interest Payment Dates                       Class A - The 15th day of each calendar month (or, if
                                             such day is not a Business Day, the next succeeding
                                             Business Day), commencing in January 2004.

                                             Class B - The 15th day of each calendar month (or, if
                                             such day is not a Business Day, the next succeeding
                                             Business Day), commencing in January 2004 .

Statement Dates                              Each Distribution Date, commencing in January 2004.

Principal Payment Date                       Not applicable.

Interest Calculation Dates                   Not applicable.

Accumulation Commencement Date               Not applicable.

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

Accumulation Amount                          (a) Through the Class A Expected Final Payment Date,
                                             (i) $62,500,000 or (ii) if the Master Servicer elects
                                             to delay commencement of the Accumulation Period in
                                             accordance with Section 23 or if an increase in the
                                             Series Investor Interest pursuant to Section 32 has
                                             occurred, the Class A Initial Investor Interest divided
                                             by the number of Distribution Dates from the
                                             commencement of the Accumulation Period through and
                                             including the Class A Expected Final Payment Date, and
                                             (b) thereafter, (i) $39,474,000 or (ii) if an increase
                                             in the Series Investor Interest pursuant to Section 32
                                             has occurred, the
</Table>

                                       9
<PAGE>

<Table>
<S>                                          <C>
                                             Class B Initial Investor Interest.

Principal Commencement Date                  The first day of the Due Period related to the December
                                             2009 Distribution Date (or such later Distribution Date
                                             as the Master Servicer may elect in accordance with
                                             Section 23).

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

Controlled Liquidation Period                Not applicable.

Early Accumulation Period                    Not applicable.

Type of Credit Enhancement                   Cash collateral account.

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

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

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

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

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

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

Maximum Class B Credit Enhancement Amount    On any Distribution Date (a) prior to the making of an
                                             Effective Alternative Credit Support Election, the
                                             greatest of (i) $7,894,740, (ii) an amount equal to 1%
                                             of the Series Initial Investor Interest, and (iii) (x)
                                             if a Supplemental Credit Enhancement Event has not
                                             occurred, an amount equal to 7.5% of the Series
                                             Investor Interest as of the last day of the related Due
                                             Period, or (y) if a Supplemental Credit Enhancement
                                             Event has occurred, an
</Table>

                                       10
<PAGE>

<Table>
<S>                                          <C>
                                             amount equal to 8.0% of the Series Investor Interest as
                                             of the last day of the related Due Period or (b)
                                             subsequent to the making of an Effective Alternative
                                             Credit Support Election, the greatest of (i)
                                             $7,894,740, (ii) an amount equal to 1% of the Series
                                             Initial Investor Interest, and (iii) an amount equal to
                                             12.5% of the Series Investor Interest as of the last
                                             day of the related Due Period; provided, however, that
                                             if an Amortization Event with respect to the Series
                                             established hereby occurs, the Maximum Class B Credit
                                             Enhancement Amount for each Distribution Date
                                             thereafter shall equal the Maximum Class B Credit
                                             Enhancement Amount for the Distribution Date
                                             immediately preceding the occurrence of the
                                             Amortization Event; and provided, further, that if a
                                             Credit Enhancement Drawing has been made, until such
                                             time as the Available Class B Credit Enhancement Amount
                                             has been reinstated in an amount at least equal to the
                                             amount of such Credit Enhancement Drawing, the Maximum
                                             Class B Credit Enhancement Amount shall be the Maximum
                                             Class B Credit Enhancement Amount as of the date of
                                             such Credit Enhancement Drawing.

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

Additional Credit Support Amount             The lesser of (x)(i) prior to the occurrence of a
                                             Supplemental Credit Enhancement Event, 5% of the Series
                                             Initial Investor Interest or (ii) following the
                                             occurrence of a Supplemental Credit Enhancement Event,
                                             4.5% of the Series Initial Investor Interest and (y)
                                             the difference between the Maximum Class B Credit
                                             Enhancement Amount (after giving effect to an
                                             Alternative Credit Support Election) and the Available
                                             Class B Credit Enhancement Amount (immediately before
                                             giving effect to the Alternative Credit Support
                                             Election).

Supplemental Credit Enhancement Amount       The lesser of (x)(i) prior to the occurrence of an
                                             Alternative Credit Support Election, 0.5% of the Series
                                             Initial Investor Interest
</Table>

                                       11
<PAGE>

<Table>
<S>                                          <C>
                                             or (ii) zero following the occurrence of an Alternative
                                             Credit Support Election and (y) the difference between
                                             the Maximum Class B Credit Enhancement Amount (after
                                             giving effect to the occurrence of a Supplemental
                                             Credit Enhancement Event) and the Available Class B
                                             Credit Enhancement Amount (immediately before giving
                                             effect to the occurrence of a Supplemental Credit
                                             Enhancement Event).

Initial Subordinated Amount                  $98,684,250.

Additional Subordinated Amount               Prior to the occurrence of a Supplemental Credit
                                             Enhancement Event, 5% of the Series Initial Investor
                                             Interest and following the occurrence of a Supplemental
                                             Credit Enhancement Event, 4.5% of the Series Initial
                                             Investor Interest.

Supplemental Subordinated Amount             Prior to the effectiveness of an Alternative Credit
                                             Support Election, 0.5% of the Series Initial Investor
                                             Interest and zero following the effectiveness of an
                                             Alternative Credit Support Election.

Series Buffer Amount                         Zero.

Group Buffer Amount                          Zero.

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

Supplemental Servicing Fee Percentage        Zero.

Amount of Additional Funds                   Initially, zero.

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

Series Termination Date                      The first Business Day following the Distribution Date
                                             in May 2013.

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

                                       12
<PAGE>

<Table>
<S>                                          <C>
                                             Money Market Yield) on the investments in the Series
                                             Principal Funding Account as of such date of
                                             determination.

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

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

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

Bearer Certificates                          Not applicable.

Registered Certificates                      Class A and Class B Certificates.

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

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

Principal Paying Agent                       Class A - Not applicable.

                                             Class B - Not applicable.

Paying Agents                                Class A and Class B - the Corporate Trust Office of the
                                             Trustee.
</Table>

                                       13
<PAGE>

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

                                        DISCOVER BANK,
                                        as Seller, Master Servicer and Servicer

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

                                        U.S. BANK NATIONAL ASSOCIATION,
                                        as Trustee

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

<PAGE>

                                      ANNEX

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

         SECTION 1. Definitions

         (a) Capitalized terms not otherwise defined in this Series Supplement
(including the Series Term Sheet) shall have the meanings ascribed to them in
the Pooling and Servicing Agreement. Capitalized terms that refer to a Series
refer to the Series established hereby or a Subseries, if any, established in
the Series Term Sheet of this Series Supplement specifying that such Subseries
is to be treated as a separate Series herein and under the Pooling and Servicing
Agreement and all of the other Series Supplements of Discover Card Master Trust
I. Capitalized terms that refer to a Class refer to a Class of the Series or
Subseries, if any, established hereby, as applicable, unless the context
otherwise clearly requires.

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

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

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

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

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

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

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

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

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

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

<PAGE>

         "Available Class A Credit Enhancement Amount," if applicable, shall
have the meaning set forth in the Series Term Sheet. Notwithstanding the
foregoing, the Available Class A Credit Enhancement Amount for any Distribution
Date shall not exceed the Maximum Class A Credit Enhancement Amount for such
Distribution Date.

         "Available Class B Credit Enhancement Amount" shall mean, with respect
to the first Distribution Date, the Stated Class B Credit Enhancement Amount,
and, thereafter, shall mean the amount available to be drawn under the Credit
Enhancement with respect to the Available Class B Credit Enhancement Amount from
time to time, which on any date of determination shall be equal to the Available
Class B Credit Enhancement Amount for the immediately preceding Distribution
Date minus the amount of all Credit Enhancement Drawings with respect to the
Available Class B Credit Enhancement Amount on or since such immediately
preceding Distribution Date, plus the amount of all payments made to the Trustee
as administrator of the Credit Enhancement with respect to the Available Class B
Credit Enhancement Amount pursuant to Section 9 plus, following an Effective
Alternative Credit Support Election, the Additional Credit Support Amount and,
plus, following a Supplemental Credit Enhancement Event, the Supplemental Credit
Enhancement Amount plus following an increase in the Series Investor Interest
pursuant to Section 32, the Increased Credit Enhancement Amount; provided,
however, that from and after the Fully Funded Date, if any, the Available Class
B Credit Enhancement Amount shall equal zero. Notwithstanding the foregoing, the
Available Class B Credit Enhancement Amount for any Distribution Date shall not
exceed the Maximum Class B Credit Enhancement Amount for such Distribution Date.

         "Available Shared Credit Enhancement Amount," if applicable, shall
mean, with respect to the first Distribution Date, the Stated Shared Credit
Enhancement Amount, and, thereafter, shall mean the amount available to be drawn
under the Credit Enhancement with respect to the Available Shared Credit
Enhancement Amount from time to time, which on any date of determination shall
be equal to the Available Shared Credit Enhancement Amount for the immediately
preceding Distribution Date minus the amount of all Credit Enhancement Drawings
with respect to the Available Shared Credit Enhancement Amount on or since such
immediately preceding Distribution Date, and plus the amounts of all payments
made to the Trustee as administrator of the Credit Enhancement with respect to
the Available Shared Credit Enhancement Amount pursuant to Section 9.
Notwithstanding the foregoing, the Available Shared Credit Enhancement Amount
for any Distribution Date shall not exceed the Maximum Shared Credit Enhancement
Amount for such Distribution Date.

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

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

                           (b) the amount of Series Excess Servicing;

                                       2
<PAGE>

as such amount may be (x) reduced pursuant to the provisions of Section 9 to
take into account (i) the amount of Class A and Class B Excess Servicing used to
reimburse the Class A Cumulative Investor Charged-Off Amount, (ii) the amount of
Class B Excess Servicing used to reduce the Class A Required Amount Shortfall,
(iii) the amount of the Class B Subordinated Payment and (iv) the amount of any
reduction in the Class B Investor Interest resulting from the reimbursement of
the Class A Cumulative Investor Charged-Off Amount, in each case for such
Distribution Date, and (y) increased pursuant to the provisions of Section 9 to
take into account the application of amounts on deposit in the Group Finance
Charge Collections Reallocation Account (i) to reduce the Class B Required
Amount Shortfall, (ii) to reduce the Class B Cumulative Investor Charged-Off
Amount and (iii) to increase the Available Class B Credit Enhancement Amount, in
each case for such Distribution Date; provided, however, that from and after the
Fully Funded Date, if any, the Available Subordinated Amount will equal zero.

Upon the occurrence of a Supplemental Credit Enhancement Event, the Available
Subordinated Amount will be increased by the Supplemental Subordinated Amount.
In addition, on the first Distribution Date following an Effective Alternative
Credit Support Election, the Available Subordinated Amount shall be increased by
the Additional Subordinated Amount. On the date of an increase in the Series
Investor Interest pursuant to Section 32, the Available Subordinated Amount
shall be increased by the Increased Issuance Subordinated Amount. In no event,
however, shall the Available Subordinated Amount exceed (i) through the last
Distribution Date preceding an Effective Alternative Credit Support Election,
the Initial Subordinated Amount plus the Supplemental Subordinated Amount and
the Increased Issuance Subordinated Amount and (ii) thereafter, the sum of the
Initial Subordinated Amount, the Supplemental Subordinated Amount, the Increased
Issuance Subordinated Amount and the Additional Subordinated Amount.

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

         "Cedel" shall mean Clearstream Banking.

         "Certificate Interest" shall mean, for any Class for any Interest
Payment Date, the product of (a) the Class Invested Amount for such Class for
such Interest Payment Date and (b) a fraction the numerator of which is (1) with
respect to each Class that has no Subclasses, the Certificate Rate for such
Class or (2) with respect to each Class that has two or more Subclasses, the
Class Weighted Average Certificate Rate, and the denominator of which is (x) if
the relevant Certificate Rate is to be calculated on the basis of the actual
number of days elapsed and a 360-day year, 360 divided by the actual number of
days from and including the immediately preceding Interest Payment Date (or, in
the case of the first Interest Payment Date, from and including the Series
Closing Date) to but excluding the current Interest Payment Date or (y) if the
relevant Certificate Rate is to be calculated on the basis of a 360-day year of
twelve 30-day months, twelve divided by the number of Distribution Dates from
and including the preceding Interest Payment Date to but excluding the current
Interest Payment Date (or, in the case of the first Interest Payment Date, 360
divided by the number of days from and including the Series Closing Date to but
excluding the 15th day of the month in which current Interest Payment Date
occurs, assuming 30-day months); provided, that, if an increase in the Series
Investor Interest has been made pursuant to Section 32 on or prior to such
Interest Payment Date but during the

                                       3
<PAGE>

calendar month in which such Interest Payment Date occurred, the Class Invested
Amount for each Class for such Interest Payment Date shall be deemed to exclude
the portion of the Class Invested Amount represented by Investor Certificates
issued in connection with such increase and such Investor Certificates shall
only bear interest from such Interest Payment Date; and provided, further, that
if an increase in the Series Investor Interest has been made pursuant to Section
32 during the related Interest Accrual Period but prior to the calendar month in
which such Interest Payment Date occurred, any Investor Certificates so issued
shall bear interest from the prior Interest Payment Date (or, in the case of the
first Interest Payment Date, from the Series Closing Date).

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

         "Certificate Rate," with respect to any Class or Subclass, shall mean
the certificate rate set forth in the Series Term Sheet with respect to such
Class or Subclass, as such rate may be adjusted as of the beginning of each
Interest Accrual Period, if applicable; provided, however, that the Certificate
Rate for any Class or Subclass that does not have a fixed Certificate Rate shall
not exceed the Class Cap Rate or Class Maximum Rate, as applicable, for such
Class or Subclass; and provided, further, that any interest on the Investor
Certificates (including any interest accrued with respect to any Class
Deficiency Amount) shall be payable or distributed to the Investor
Certificateholders only to the extent permitted by applicable law.

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

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

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

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

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

                                       4
<PAGE>

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

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

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

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

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

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

                                       5
<PAGE>

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

         "Class Finance Charge Collections" shall mean, with respect to any
Class, with respect to any day or any Distribution Date or Trust Distribution
Date, as applicable, an amount equal to the product of (x) the Class Percentage
with respect to Finance Charge Collections for the related Distribution Date and
(y) the amount of Finance Charge Collections for such day or for the related Due
Period, as applicable; provided, however, that Class Finance Charge Collections
for each Class shall be increased by the lesser of (i) the amount of Class
Investment Shortfall for such Class and (ii) an amount equal to the product of
the total amount of Finance Charge Collections otherwise allocable to Discover
Bank on behalf of the Holder of the Seller Certificate for the related Due
Period and a fraction the numerator of which is the Class Invested Amount for
such Class and the denominator of which is the Aggregate Invested Amount; and
provided, further, that notwithstanding the foregoing, Class Finance Charge
Collections for each Class shall not, with respect to any such day, Distribution
Date or Trust Distribution Date during the Accumulation Period or the Early
Accumulation Period, as applicable, exceed the amount that would be available if
the Class Percentage with respect thereto were the percentage equivalent of a
fraction the numerator of which is the amount of the Class Investor Interest on
the last day of the Due Period prior to the commencement of the Accumulation
Period or the Early Accumulation Period, and the denominator of which is the
greater of (i) the amount of Principal Receivables in the Trust on the first day
of the related Due Period and (ii) the sum of the numerators used in calculating
the components of the Series Percentage with respect to Finance Charge
Collections for each Series then outstanding (including the Series established
hereby) as of such day, Distribution Date or Trust Distribution Date, as
applicable.

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

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

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

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

                                       6
<PAGE>

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

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

         "Class Investment Shortfall" with respect to each Class with respect to
any Distribution Date during the Accumulation Period or the Early Accumulation
Period, if applicable, shall mean an amount equal to the positive difference, if
any, between (i) one-twelfth of the product of (a) (x) with respect to each
Class that has no Subclasses, the Certificate Rate, or (y) with respect to each
Class that has two or more Subclasses, the Class Weighted Average Certificate
Rate, in each case for the related Due Period, and (b) the amount on deposit in
the Series Principal Funding Account for the benefit of such Class as of the end
of the previous Distribution Date and (ii) Class Investment Income for the
related Due Period.

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

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

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

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

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

                                       7
<PAGE>

         "Class Monthly Servicing Fee" with respect to any Class for any
Distribution Date, shall mean an amount equal to the product of (x) a fraction
the numerator of which shall be the Class Investor Interest and the denominator
of which shall be the Series Investor Interest, in each case on the first day of
the related Due Period and (y) the amount of the Investor Servicing Fee for the
related Due Period. For purposes of this definition, the Class Investor Interest
on the first day of any Due Period in which the Series Closing Date or an
increase in the Series Investor Interest pursuant to Section 32 has occurred
shall include the Class Investor Interest of all Investor Certificates issued
during such Due Period.

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

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

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

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

                  (d) when used with respect to Finance Charge Collections
         during the Revolving Period and the Accumulation Period or the
         Controlled Liquidation Period, as applicable, and provided that an
         Effective Alternative Credit Support Election has been made, during the
         Early Accumulation Period or the Amortization Period, the percentage
         equivalent of a fraction the numerator of

                                       8
<PAGE>

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

                  (e) when used with respect to Finance Charge Collections
         during the Early Accumulation Period or the Amortization Period,
         provided that an Effective Alternative Credit Support Election has not
         been made, the percentage equivalent of a fraction the numerator of
         which shall be the amount of the Class Investor Interest on the last
         day of the Due Period prior to the occurrence of an Early Accumulation
         Event or an Amortization Event, and the denominator of which shall be
         the greater of (i) the amount of Principal Receivables in the Trust on
         the first day of the related Due Period and (ii) the sum of the
         numerators used in calculating the components of the Series Percentage
         with respect to Finance Charge Collections for each Series then
         outstanding (including the Series established hereby) as of such
         Distribution Date or Trust Distribution Date, as applicable; provided,
         however, that from and after the Fully Funded Date, if any, the Class
         Percentage with respect to Finance Charge Collections will equal zero.

         For purposes of this definition, the Class Investor Interest as of the
first day of any Due Period in which the Series Closing Date has occurred or an
increase in the Series Investor Interest has been made pursuant to Section 32
shall include the Class Investor Interest of all Investor Certificates issued
during or prior to such Due Period.

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

         "Class Required Amount" with respect to any Class on any Distribution
Date, shall mean the sum of (i) the product of (a) the Class Invested Amount
with respect to such Class for such Distribution Date and (b) a fraction, the
numerator of which is the Certificate Rate for such Class, and the denominator
of which is (x) if the relevant Certificate Rate is to be calculated on the
basis of the actual number of days elapsed and a 360-day year, 360 divided by
the actual number of days from and including the immediately preceding
Distribution Date (or in the case of the first Distribution Date, from and
including the Series Closing Date) to but excluding the current Distribution
Date or (y) if the relevant Certificate Rate is to be calculated on the basis of
a 360-day year of twelve 30-day months, twelve (or in the case of the first
Distribution Date, 360 divided by the number of days from and including the
Series Closing Date to but excluding the 15th day of the month in which the
current Interest Payment Date occurs, assuming each month

                                       9
<PAGE>

has 30 days), (ii) the Class Monthly Deficiency Amount on the immediately
preceding Distribution Date, (iii) the Class Deficiency Amount on the
immediately preceding Payment Date multiplied by a fraction the numerator of
which is the weighted average of the Certificate Rates or of the Class Weighted
Average Certificate Rates, as applicable, for such Class for each Due Period
subsequent to the immediately preceding Payment Date plus 2.00% per annum and
the denominator of which is (x) if the relevant Certificate Rate is to be
calculated on the basis of the actual number of days elapsed and a 360-day year,
360 divided by the actual number of days from and including the immediately
preceding Distribution Date to but excluding the current Distribution Date or
(y) if the relevant Certificate Rate is to be calculated on the basis of a
360-day year of twelve 30-day months, twelve, (iv) if on the immediately
preceding Distribution Date a Reimbursed Loss Event occurred, the sum of (A) the
Reimbursed Loss Interest for each previous Distribution Date since the last
Distribution Date on which the aggregate amount of unreimbursed Investor Losses
for such Class equaled zero, (B) the Reimbursed Loss Interest Gross-up Amount
for each previous Distribution Date since the last Distribution Date on which
the aggregate amount of unreimbursed Investor Losses for such Class equaled zero
and (C) for any Distribution Date following the Distribution Date immediately
following the Reimbursed Loss Event to and including the next Payment Date, the
Reimbursed Loss Interest Gross-up Amount for such Distribution Date and (v) the
sum of all accrued but unpaid Class Monthly Servicing Fees; provided, that, if
an increase in the Series Investor Interest has been made pursuant to Section 32
on or prior to such Distribution Date but during the calendar month in which
such Distribution Date occurred, the Class Invested Amount for each Class for
such Distribution Date shall be deemed to exclude the portion of the Class
Invested Amount represented by Investor Certificates issued in connection with
such increase; and provided, further, that if an increase in the Series Investor
Interest has been made pursuant to Section 32 during the prior calendar month,
the amount in clause (i) above shall be deemed to include the portion of the
Class Invested Amount represented by Investor Certificates issued as part of
such increase as if such increase had taken effect on such prior Distribution
Date (or, in the case of the first Distribution Date, on the Series Closing
Date).

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

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

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

         "Class Yield Collections" shall mean, with respect to any Class, with
respect to any day or any Distribution Date, as applicable, an amount equal to
the product of the Class Yield

                                       10
<PAGE>

Percentage for such Class and the amount of Series Yield Collections for such
day or the related Due Period, as applicable.

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

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

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

         "Controlled Accumulation Amount," if applicable, with respect to any
Distribution Date related to the Accumulation Period shall mean an amount equal
to the sum of the Accumulation Amount and any existing Deficit Accumulation
Amount; provided, however, that the Controlled Accumulation Amount shall not be
less than zero and through the Class Expected Final Payment

                                       11
<PAGE>

Date or Class Final Maturity Date, as applicable, with respect to each Class in
turn, beginning with Class A, shall not exceed an amount equal to the Class
Investor Interest for such Class.

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

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

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

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

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

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

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

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

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

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

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

                                       12
<PAGE>

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

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

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

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

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

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

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

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

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

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

         "Fixed Principal Allocation Event" shall mean the earliest of (a) the
beginning of the Due Period immediately following the Due Period related to the
first Distribution Date during the Controlled Liquidation Period or the
Accumulation Period, as applicable, with respect to the Series established
hereby on which the Series Available Principal Amount is less than zero; (b) the
date on which an Early Accumulation Event or an Amortization Event with respect
to the Series established hereby occurs; and (c) a date selected by the Master
Servicer, if any. If the

                                       13
<PAGE>

Master Servicer establishes a date for a Fixed Principal Allocation Event
pursuant to clause (c) of the preceding sentence, the Master Servicer shall
provide notification of such date to Discover Bank on behalf of the Holder of
the Seller Certificate, the Trustee, the Credit Enhancement Provider and the
Rating Agencies no later than two Business Days prior to such date.

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

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

         "Group Available Principal Amount" shall mean, with respect to each
Distribution Date, the amount remaining on deposit in the Group Principal
Collections Reallocation Account on such Distribution Date after all withdrawals
have been made from such account for the benefit of any Series in the same Group
as the Series established hereby (including the Series established hereby), but
before such amount is withdrawn from the Group Principal Collections
Reallocation Account and deposited into the Collections Account pursuant to
Section 9(b)(35)).

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

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

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

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

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

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

                                       14
<PAGE>

Amount for such Distribution Date plus, for each Series that is a member of such
Group, the Series Required Principal Amount for such Series for such
Distribution Date.

         "Increased Credit Enhancement Amount" shall have the meaning specified
in Section 32.

         "Increased Issuance Subordinated Amount" shall mean an amount equal to
the product of (x) the face amount of Investor Certificates being issued in an
increase in the Series Investor Interest pursuant to Section 32 and (y) the
Initial Subordinated Amount (plus, following a Supplemental Credit Enhancement
Event, the Supplemental Subordinated Amount, plus, following an Effective
Alternative Credit Support Election, the Additional Subordinated Amount, as
applicable) divided by the Series Initial Investor Interest (without giving
effect to such increase).

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

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

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

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

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

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

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

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

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

                                       15
<PAGE>

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

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

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

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

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

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

                                       16
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

                                       17
<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       18
<PAGE>

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

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

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

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

         "Reimbursed Loss Interest Gross-up Amount" shall mean, for any Class
for any Distribution Date, an amount equal to the product of (i) the positive
difference, if any, between the Class Alternative Deficiency Amount for the
immediately preceding Payment Date and the actual Class Deficiency Amount for
the immediately preceding Payment Date and (ii) a fraction

                                       19
<PAGE>

the numerator of which is the Certificate Rate or the Class Weighted Average
Certificate Rate, as applicable, for such Class for the related Due Period and
the denominator of which is (x) if the relevant Certificate Rate is to be
calculated on the basis of the actual number of days elapsed and a 360-day year,
(A) if each Interest Payment Date is also a Distribution Date, 360 divided by
the actual number of days from and including the immediately preceding
Distribution Date to but excluding the current Distribution Date or (B) if each
Interest Payment Date is not also a Distribution Date, 360 divided by the actual
number of days from and including the Interest Calculation Date in the preceding
calendar month to but excluding the Interest Calculation Date following the
current Distribution Date or (y) if the relevant Certificate Rate is to be
calculated on the basis of a 360-day year of twelve 30-day months, twelve.

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

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

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

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

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

                           (y)  the positive difference, if any, between

                                       20
<PAGE>

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

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

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

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

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

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

                                       21
<PAGE>

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

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

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

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

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

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

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

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

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

         "Series Excess Spread" shall mean, for any Distribution Date, an amount
equal to (a) the sum of Series Finance Charge Collections, Series Yield
Collections, Series Additional Investor Funds and any Class Investment Income
for any Class of the Series established hereby minus (b) the sum of (i) with
respect to each Class, the product of (A) the Class Invested Amount for such
Class for such Distribution Date and (B) a fraction, the numerator of which is
the Certificate Rate for that Class, and the denominator of which is (x) if the
relevant Certificate Rate is to be

                                       22
<PAGE>

calculated on the basis of the actual number of days elapsed and a 360-day year,
360 divided by the actual number of days from and including the immediately
preceding Distribution Date (or in the case of the first Distribution Date, from
and including the Series Closing Date) to but excluding the current Distribution
Date or (y) if the relevant Certificate Rate is to be calculated on the basis of
a 360-day year of twelve 30-day months, twelve (or in the case of the first
Distribution Date, 360 divided by the number of days from and including the
Series Closing Date to but excluding the current Distribution Date, assuming
30-day months), (ii) the Investor Servicing Fee, (iii) the product of the Series
Percentage with respect to the Charged-Off Amount and the Charged-Off Amount,
and (iv) the Credit Enhancement Fee, in each case for such Distribution Date;
provided, however, that solely for purposes of determining the Group Excess
Spread for this Series or any other Series, Series Excess Spread shall be the
amount determined as set forth above minus any amount paid or deposited on such
date by the Trust under the Class Interest Rate Swap, if any; and provided, that
if an increase in the Series Investor Interest has been made pursuant to Section
32 on or prior to such Distribution Date but during the calendar month in which
such Distribution Date occurred, the Class Invested Amount for each Class for
such Distribution Date shall be deemed to exclude the portion of the Class
Invested Amount represented by Investor Certificates issued in connection with
such increase; and provided, further, that if an increase in the Series Investor
Interest has been made pursuant to Section 32 during the prior calendar month on
a day other than the Distribution Date in such prior calendar month, the amount
in clause (i) above shall be deemed to include the portion of the Class Invested
Amount represented by Investor Certificates issued as part of such increase as
if such increase had taken effect on such prior Distribution Date.

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

         "Series Initial Investor Interest" shall mean the aggregate face amount
of Investor Certificates authenticated and delivered pursuant to Section 7 and,
if applicable, pursuant to Section 32, as specified in the Series Term Sheet.

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

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

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

         "Series Minimum Principal Receivables Balance" shall mean, with respect
to the Series established hereby, on any date of determination the sum of (A)
(i) if a Fixed Principal Allocation Event has not occurred, the Series Investor
Interest on such date of determination, divided by 0.93, (ii) if a Fixed
Principal Allocation Event has occurred but the Fully Funded Date has not
occurred, the Series Investor Interest as of the date of the occurrence of the
Fixed

                                       23
<PAGE>

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

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

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

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

         "Series Principal Funding Account" shall mean the Series Principal
Funding Account established pursuant to Section 8. Amounts "on deposit in" the
Series Principal Funding Account shall be deemed to be on deposit for the
benefit of (i) the Class A Certificateholders for the period up to and including
the Class A Expected Final Payment Date or Class A Final Maturity Date, as
applicable, and (ii) if there is a Subordinate Class with respect to Class A,
the Class B Certificateholders for the period beginning immediately after the
Class A Expected Final Payment Date or Class A Final Maturity Date, as
applicable, and ending on the Class B Expected Final Payment Date or Class B
Final Maturity Date, as applicable. Amounts "on deposit in" the Series Principal
Funding Account shall be deemed to include amounts invested in Permitted
Investments pursuant to Section 8 unless the context clearly requires otherwise.

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

                                       24
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

         "Subseries" shall mean Investor Certificates of a Series that are
identified in the Series Term Sheet as constituting a "Subseries." If a Series
consists of two or more Subseries, then each provision of the Annex to this
Series Supplement shall be interpreted and applied separately

                                       25
<PAGE>

for each Subseries as if such Subseries were an independent Series, and each
reference to a "Series" and each term beginning with "Series" (except as used in
this definition of Subseries) shall be deemed to be a reference to the
applicable Subseries or the provisions of the applicable Subseries (e.g., as
applied in relation to a specific Subseries, the term "Series Termination Date"
shall refer solely to the Series Termination Date identified in the Series Term
Sheet with respect to that Subseries and the term "Series Principal Funding
Account" shall refer solely to the Series Principal Funding Account established
with respect to that Subseries ), except where the context clearly requires that
such term refers to multiple or other Series of the Trust, in which case such
term shall be interpreted to treat each Subseries as a separate Series of the
Trust. Each Subseries shall be treated as a separate Series for all purposes of
the Pooling and Servicing Agreement and each other Series Supplement issued with
respect to the Discover Card Master Trust I.

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

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

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

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

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

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

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

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

         "Total Available Credit Enhancement Amount" shall mean, with respect to
the first Distribution Date, the Stated Class B Credit Enhancement Amount plus,
if applicable, the Stated Shared Credit Enhancement Amount, and, on each
Distribution Date thereafter, shall mean the Available Class B Credit
Enhancement Amount plus, if applicable, the Available Shared Credit

                                       26
<PAGE>

Enhancement Amount, in each case after all adjustments thereto on the
immediately preceding Distribution Date, and, in each case, as adjusted pursuant
to Section 9 on such Distribution Date.

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

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

         SECTION 2. Subordination.

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

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

         SECTION 3. Representations and Warranties of the Sellers. The
representations and warranties of the Sellers contained in Section 2.04 of the
Pooling and Servicing Agreement and the corresponding sections of any Assignment
are true on and as of the date hereof and/or the date set forth in the Pooling
and Servicing Agreement, as applicable. Each Seller also represents and warrants
to the Trust as of the date hereof that:

         (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

                                       27
<PAGE>

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

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

                                       28
<PAGE>
the same may be limited by receivership, insolvency, reorganization, moratorium
or other laws relating to the enforcement of creditors' rights generally or by
general equity principles.

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

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

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

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

         (a)      The Series Distribution Account, Series Collections Account
and Series Principal Collections Account. The Trustee, for the benefit of the
Certificateholders, shall cause to be established and maintained in the name of
the Trust, with the corporate trust department of an office or branch of either
the Trustee or a Qualified Institution, three non-interest bearing segregated
demand deposit accounts (the "Series Distribution Account"; for Collections, the
"Series Collections Account"; and for Series Principal Collections and certain
other amounts deposited therein pursuant to Section 9, the "Series Principal
Collections Account") bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Certificateholders. The Trust
shall possess all right, title and interest in all funds on deposit in the
Series Distribution Account, the Series Collections Account and the Series
Principal Collections Account; provided, however, that all interest and earnings
(less investment expenses)

                                       29
<PAGE>

on funds on deposit in any such account shall be paid to the Holder of the
Seller Certificate in accordance with Section 4.02(c) of the Pooling and
Servicing Agreement. Pursuant to authority granted to it pursuant to Section
3.01(b) of the Pooling and Servicing Agreement, the Master Servicer shall have
the revocable power to instruct the Trustee to withdraw funds from the Series
Distribution Account, the Series Collections Account and the Series Principal
Collections Account for the purpose of carrying out the duties of the Master
Servicer hereunder. The Master Servicer at all times shall maintain accurate
records reflecting each transaction in the Series Distribution Account, the
Series Collections Account and the Series Principal Collections Account. The
Paying Agent also shall have the revocable authority to make withdrawals from
the Series Distribution Account.

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

         (c)      The Series Principal Funding Account. The Trustee, for the
benefit of the Certificateholders, shall establish and maintain or cause to be
established and maintained in the name of the Trust, with the corporate trust
department of an office or branch of either the Trustee or a Qualified
Institution, a non-interest bearing segregated trust account (for principal to
be paid to Investor Certificateholders of this Series, the "Series Principal
Funding Account") bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Certificateholders. The Trust
shall possess all right, title and interest in all funds on deposit from time to
time in the Series Principal Funding Account and in all proceeds thereof. The
Series Principal Funding Account shall be under the sole dominion and control of
the Trustee for the benefit of the Certificateholders. Pursuant to authority
granted to it pursuant to Section 3.01(b) of the Pooling and Servicing
Agreement, the Master Servicer shall have the revocable power to withdraw funds
from the Series Principal Funding Account for the purpose of carrying out the
duties of the Master Servicer hereunder. The Master Servicer at all times shall
maintain accurate records reflecting each transaction in the Series Principal
Funding Account. The Paying Agent

                                       30
<PAGE>

also shall have the revocable authority to make withdrawals from the Series
Principal Funding Account.

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

         (d)      The Series Interest Funding Account. The Trustee, for the
benefit of the Certificateholders, shall establish and maintain or cause to be
established and maintained in the name of the Trust, in the corporate trust
department of an office or branch of either the Trustee or a Qualified
Institution, a non-interest bearing segregated trust account (for payment of
Certificate Interest, the "Series Interest Funding Account") bearing a
designation clearly indicating that the funds deposited therein are held for the
benefit of the Certificateholders. The Trust shall possess all right, title and
interest in all funds on deposit from time to time in the Series Interest
Funding Account and in all proceeds thereof. Pursuant to authority granted to it
pursuant to Section 3.01(b) of the Pooling and Servicing Agreement, the Master
Servicer shall have the revocable power to instruct the Trustee to withdraw
funds from the Series Interest Funding Account for the purpose of carrying out
the duties of the Master Servicer hereunder. Any funds on deposit in the Series
Interest Funding Account for more than one Business Day shall be invested in
Permitted Investments pursuant to Section 4.02(c) of the Pooling and Servicing
Agreement. The Master Servicer at all times shall maintain accurate records
reflecting each transaction in the Series

                                       31
<PAGE>

Interest Funding Account. The Paying Agent shall also have the revocable
authority to make withdrawals from the Series Interest Funding Account.

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

         Funds on deposit in the Credit Enhancement Account shall be invested in
Permitted Investments by the Trustee as administrator of the Credit Enhancement
at the direction of the Master Servicer, as set forth below. Any Permitted
Investment with a stated maturity shall mature on or prior to the following
Distribution Date and any funds received with respect to the maturity of a
Permitted Investment shall be available in sufficient time to allow for any
payments to be made to the Investor Certificateholders on such Distribution
Date. The Master Servicer's notice to the Trustee shall specifically identify
each such Permitted Investment (including its principal amount and maturity). In
addition, the Master Servicer shall from time to time provide written notice to
the Trustee directing the Trustee to reinvest funds representing principal,
interest or other investment income received by it with respect to such
Permitted Investments (whether upon maturity or otherwise) in additional
Permitted Investments. In the event that the Master Servicer fails to direct the
Trustee to invest or reinvest any funds that are deposited in the Credit
Enhancement Account or that are received by it with respect to Permitted
Investments by 2:00 p.m. on the date such funds are available for investment,
the Trustee shall use reasonable efforts to invest such funds overnight in
securities represented by instruments in bearer or registered form which
evidence obligations issued or fully guaranteed, as to timely payment, by

                                       32
<PAGE>

the United States of America or any instrumentality or agency thereof when such
obligations are backed by the full faith and credit of the United States of
America until such time as the Trustee receives the required notice from the
Master Servicer; provided, however, that the Trustee shall have no liability for
the failure to invest such funds if the Trustee has employed reasonable efforts
to make such investment.

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

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

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

         (g)      Transfer of Investor Accounts. If at any time any of the
Investor Accounts established in Sections 8(a) through 8(f) is not being held by
the Trustee and the institution

                                       33
<PAGE>

holding such Investor Account ceases to be a Qualified Institution, the Master
Servicer shall within 10 Business Days establish a new Investor Account (meeting
any conditions specified in this Series Supplement with respect to such Investor
Account) with a Qualified Institution and transfer any cash and/or any
investments to such new Investor Account.

         SECTION 9.          Allocations of Collections.

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

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

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

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

                           (x)      the Class A Required Amount and

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

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

                                       34
<PAGE>

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

                           (x)      the Class A Required Amount Shortfall and

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

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

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

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

                           (y)      Class A Excess Servicing

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

                  (5)      An amount equal to the lesser of

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

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

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

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

                           (x)      the Class A Required Amount Shortfall,

                           (y)      the Available Subordinated Amount, and

                           (z)      Class B Available Collections

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

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

                                       35
<PAGE>

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

                           (y)      the Available Subordinated Amount, and

                           (z)      Class B Available Collections

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

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

                           (x)      the Class B Required Amount and

                           (y)      the positive difference, if any, between

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

                                    (2)      the Class B Subordinated Payment

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

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

                           (x)      the Class B Required Amount Shortfall and

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

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

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

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

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

                                       36
<PAGE>

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

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

                           (x)      the Class A Required Amount Shortfall,

                           (y)      the Available Subordinated Amount, and

                           (z)      Series Excess Servicing

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

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

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

                           (y)      the Available Subordinated Amount, and

                           (z)      Series Excess Servicing

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

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

                           (y)      the Available Subordinated Amount, and

                           (z)      the Class B Investor Interest.

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

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

                           (x)      the Class B Required Amount Shortfall and

                                       37
<PAGE>

                           (y)      Series Excess Servicing

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

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

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

                           (y)      Series Excess Servicing

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

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

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

                           (y)      Series Excess Servicing

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

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

                           (x)      the Class A Required Amount Shortfall and

                                       38
<PAGE>

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

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

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

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

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

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

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

                           (x)      the Class B Required Amount Shortfall and

                           (y)      the Available Shared Credit Enhancement
                                    Amount

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

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

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

                           (y)      the Available Shared Credit Enhancement
                                    Amount

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

                                       39
<PAGE>

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

                           (x)      the Class B Required Amount Shortfall and

                           (y)      the Available Class B Credit Enhancement
                                    Amount

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

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

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

                           (y)      the Available Class B Credit Enhancement
                                    Amount

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

                  (22) An amount equal to the lesser of

                           (x)      the Credit Enhancement Fee and

                           (y)      Series Excess Servicing

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

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

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

                  (25)     The allocations set forth in clauses (25)(A) and
(25)(B) shall be made, first, with respect to Class A, and then, if there is a
Subordinate Class with respect to Class A,

                                       40
<PAGE>

the allocations set forth in clauses (25)(A) and (25)(B) shall be made with
respect to Class B, to the extent that funds are available pursuant to this
clause (25):

                  (A)      An amount equal to the lesser of

                           (x)      the Class Required Amount Shortfall and

                           (y)      the product of

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

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

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

                  (B)      An amount equal to the lesser of

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

                           (y)      the product of

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

                                    (2)     the amount on deposit in the Group
                                            Finance Charge Collections
                                            Reallocation Account before any
                                            withdrawals

                                       41
<PAGE>

                                            therefrom with respect to any other
                                            Series pursuant to a comparable
                                            clause in the applicable Series
                                            Supplements,

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

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

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

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

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

                           (y)      the product of

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

                                       42
<PAGE>

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

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

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

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

                           (y)      the product of

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

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

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

                  (27)     After all allocations from the Group Finance Charge
Collections Reallocation Account to be made pursuant to any other Series
Supplement for any Series that is a member of the same Group of which the Series
established hereby is a member have been made, an amount equal to the product of
(x) a fraction the numerator of which shall be the Series

                                       43
<PAGE>

Investor Interest and the denominator of which shall be the sum of the Series
Investor Interests for each Series that is a member of the same Group as the
Series established hereby (including the Series established hereby) and (y) the
amount remaining on deposit in the Group Finance Charge Collections Reallocation
Account shall be withdrawn from the Group Finance Charge Collections
Reallocation Account and paid to the Trustee as administrator of the Credit
Enhancement for application in accordance with the provisions of the Credit
Enhancement Agreement. Amounts remaining on deposit in the Group Finance Charge
Collections Reallocation Account shall be withdrawn from such account and
allocated pursuant to the provisions of the Series Supplements for each other
Series that is a member of the same Group as the Series established hereby.

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

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

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

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

                           (x)      the Principal Distribution Amount and

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

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

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

                           (x)      the Principal Distribution Amount Shortfall
                                    and

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

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

                                       44
<PAGE>

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

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

         An amount equal to the lesser of

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

                  (y)      the product of

                           (1)      a fraction the numerator of which is the
                                    portion of the Principal Distribution Amount
                                    Shortfall that is allocable to such Class
                                    and the denominator of which is the sum of
                                    the portions of the Principal Distribution
                                    Amount Shortfalls allocable to all Classes
                                    designated by the same letter of the
                                    alphabet of all Series in the Group to which
                                    the Series established hereby belongs that
                                    are in their Accumulation Periods or
                                    Controlled Liquidation Periods, as
                                    applicable (after giving effect to
                                    provisions in the applicable Series
                                    Supplements substantially similar to the
                                    clauses preceding this clause (34)) and

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

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

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

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

                  (x)      the amount of the Seller Interest and

                                       45
<PAGE>

                  (y)      the amount on deposit in the Collections Account

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

         SECTION 10.         Payments.

         (a)      Payments.

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

                  (2)      On each Distribution Date, after giving effect to
payments made pursuant to Section 9 and the calculation of Investor Losses and
adjustment of the Class Investor Interest and Class Invested Amount with respect
to each Class pursuant to Section 13, the Master Servicer shall direct the
Trustee in writing to withdraw and cause the Paying Agent to pay funds from the
applicable Investor Account to or for the benefit of each Class of Investor
Certificateholders, seriatim, with respect to each Class, beginning with Class
A, until such payments have been made with respect to each Class, as set forth
below:

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

                           (x)      the Class Modified Required Amount and

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

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

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

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

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

                                       46
<PAGE>

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

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

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

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

                  (6)      Reserved.

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

                           (x)      the Controlled Liquidation Amount and

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

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

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

                                       47
<PAGE>

                           (x)      the Principal Distribution Amount and

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

shall be withdrawn from the Series Principal Funding Account. The Master
Servicer shall cause the Paying Agent to pay such amount to the Investor
Certificateholders of such Class or Subclass in accordance with Section 5.01 of
the Pooling and Servicing Agreement. Except as set forth in the following
sentence, all such amounts shall be paid to or with respect to the Class A
Investor Certificateholders until the Class A Invested Amount is reduced to
zero; and, thereafter, if there is a Subordinate Class with respect to Class A,
such amounts shall be paid to or with respect to the Class B Investor
Certificateholders until the Class B Invested Amount is reduced to zero, unless
the Series Termination Date occurs prior to such date. In no event shall any
amounts be paid with respect to any Class of Investor Certificates pursuant to
this clause (6) in excess of the Class Invested Amount for such Class. Any
amounts remaining on deposit in the Series Principal Funding Account after the
Class Invested Amount for each Class has been reduced to zero shall be paid to
the Holder of the Seller Certificate.

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

                           (x)      the Series Invested Amount and

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

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

                  (10)     On the Class Expected Final Payment Date or the Class
Final Maturity Date, if applicable (or, if such Class Expected Final Payment
Date or Class Final Maturity Date is not also a Distribution Date, on the
Distribution Date occurring in the same calendar month as the Class Expected
Final Payment Date or the Class Final Maturity Date, if applicable), the Master
Servicer shall direct the Trustee in writing to withdraw the amount on deposit
in the Series Principal Funding Account with respect to each Class; provided
that (i) such amount shall be no greater than the Class Invested Amount and (ii)
funds, if any, remaining on deposit in the

                                       48
<PAGE>

Series Principal Funding Account after the payment in full of the Class Invested
Amount with respect to each Class shall be withdrawn and paid to the Holder of
the Seller Certificate. The Master Servicer shall cause the Paying Agent to pay
such amount to the Investor Certificateholders of such Class or Subclass in
accordance with Section 5.01 of the Pooling and Servicing Agreement.

         (b) Payments to the Sellers and/or the Master Servicer. Notwithstanding
the other provisions in Section 9 and this Section 10, any amounts payable to
Discover Bank on behalf of the Holder of the Seller Certificate or to the Master
Servicer on any Distribution Date pursuant to Section 9 and this Section 10 may
be paid prior to such Distribution Date pursuant to Section 4.03(d) of the
Pooling and Servicing Agreement.

         SECTION 11.          Credit Enhancement.

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

         (b)      Successor Credit Enhancement.

                  (i) If the Credit Enhancement is not Funded Credit Enhancement
         and if, at any time, the provider of such Credit Enhancement ceases to
         be a Qualified Credit Enhancement Provider, the Master Servicer shall
         obtain a successor Credit Enhancement within 30 days or such longer
         period as will not result in the lowering or withdrawal of the rating
         of any Class of any Series then outstanding by the Rating Agencies (a)
         which, if such successor Credit Enhancement is not to be Funded Credit
         Enhancement, will be issued by a Qualified Credit Enhancement Provider
         and (b) with respect to which the representations set forth in Section
         11(a) will be satisfied; provided, however, that the Master Servicer
         shall not be required to continue efforts to obtain a successor Credit
         Enhancement if the then existing Credit Enhancement Provider again
         becomes a Qualified Credit Enhancement Provider and remains such; and,
         provided, further, that unless otherwise agreed to by the Rating
         Agencies, the Credit Enhancement and Credit Enhancement Agreement will
         not be terminated and no successor Credit Enhancement Provider shall be
         selected if the successor Credit Enhancement, the successor Credit

                                       49
<PAGE>
         Enhancement Agreement, or the selection of such successor Credit
         Enhancement Provider would cause the ratings of the Investor
         Certificates of the Series established hereby to be withdrawn or
         lowered by either Rating Agency from the respective ratings of such
         Investor Certificates immediately prior to such selection. The Master
         Servicer, the Trustee and the Sellers shall promptly enter into any
         such successor Credit Enhancement Agreement, and the Master Servicer
         shall use its best efforts to secure the signature of any other
         required party to such agreement.

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

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

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

         SECTION 12.          Alternative Credit Support Election.

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

                                       50
<PAGE>

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

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

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

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

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

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

         SECTION 13          Calculation of Investor Losses.

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

                                       51
<PAGE>

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

         (c) On each Distribution Date the Class Investor Interest and the Class
Invested Amount for each Class shall be increased by, and the amount of
aggregate unreimbursed Investor Losses for each such Class shall be decreased
by, the positive difference, if any, between the Class Charge-Off Reimbursement
Amount on such Distribution Date and the Class Investor Charged-Off Amount for
such Distribution Date; provided, however, that neither the Class Invested
Amount nor the Class Investor Interest shall exceed the Class Initial Investor
Interest (after giving effect to any increase therein pursuant to Section 32)
for such Class minus the sum of (x) the aggregate amount of payments of
Certificate Principal paid to the Investor Certificateholders of such Class
prior to such Distribution Date, (y) in the case of the Class Investor Interest,
the amount on deposit in the Series Principal Funding Account for the benefit of
such Class in respect of Certificate Principal and (z) the aggregate amount of
losses, if any, on investments of principal of funds on deposit in the Series
Principal Funding Account for the benefit of such Class; and provided, further,
that the amount of Investor Losses with respect to any Class shall not be
reduced to an amount less than zero.

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

         SECTION 15.         Class Interest Rate Caps.

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

                                       52
<PAGE>

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

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

                                       53
<PAGE>

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

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

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

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

         SECTION 17.        Investor Certificateholders' Monthly Statement. On
each Statement Date, a statement substantially in the form of Exhibit B-1 or
Exhibit B-2, as applicable to Subseries 1 or Subseries 2, respectively, and each
as prepared by the Trustee (based on information provided by the Master
Servicer) setting forth the information listed thereon shall be available from
the Trustee, each Paying Agent and, if applicable, the Listing Agent.

         SECTION 18.        Master Servicer's Monthly Certificate. On or before
the second Business Day preceding each Statement Date, the Master Servicer shall
forward to Discover Bank on behalf of the Holder of the Seller Certificate, the
Trustee and each Paying Agent a certificate of a Servicing Officer substantially
in the form of Exhibit C-1 or Exhibit C-2, as applicable to Subseries 1 or
Subseries 2, respectively, and each setting forth the information listed
thereon.

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

                                       54
<PAGE>

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

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

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

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

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

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

                                       55
<PAGE>

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

         (b) if a Supplemental Credit Enhancement Event shall have occurred and
Discover Bank as Servicer shall have failed to arrange for the Supplemental
Credit Enhancement in accordance with the requirements of Section 11(c) hereof
(including, without limitation, receipt of the confirmation from Standard &
Poor's required thereby).

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

         SECTION 22.       Purchase of Investor Certificates and Series
Termination.

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

         (b) If as of any Distribution Date during the Accumulation Period, the
Early Accumulation Period or the Controlled Liquidation Period, as applicable
(after giving effect to any payments calculated pursuant to Section 9 made on
such Distribution Date), the Series

                                       56
<PAGE>

Investor Interest of the Series established hereby is less than or equal to 5%
of the Series Initial Investor Interest (before giving effect to any reduction
in the Series Initial Investor Interest pursuant to Section 6.14 of the Pooling
and Servicing Agreement), Discover Bank on behalf of the Holder of the Seller
Certificate may, but shall not be obligated to, purchase the Investor
Certificates of the Series established hereby by depositing into the Series
Principal Funding Account, on such Distribution Date, an amount equal to such
Series Investor Interest. After giving effect to such deposit, such Series
Investor Interest shall be reduced to zero, and the Seller Interest shall be
increased by the amount of such deposit.

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

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

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

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

                                       57
<PAGE>

         SECTION 25.        Series Yield Factor. The Series Yield Factor for the
Series established hereby shall initially be the Series Yield Factor set forth
in the Series Term Sheet. The Master Servicer may change the Series Yield Factor
upon 20 days prior written notice to the Trustee, Discover Bank on behalf of the
Holder of the Seller Certificate, the Credit Enhancement Provider and the Rating
Agencies, provided that the following conditions are satisfied: (i) the Series
Yield Factor may not be reduced below the initial Series Yield Factor or
increased to more than a total of 0.05; (ii) the Master Servicer shall have
delivered to the Trustee a certificate to the effect that the Master Servicer
reasonably believes that the change in the Series Yield Factor would not (x)
result in any delay in the payment of principal to the Investor
Certificateholders of any Series then outstanding, or (y) cause an Amortization
Event or an Early Accumulation Event to occur with respect to any Series then
outstanding; and (iii) Standard & Poor's shall have advised the Master Servicer
and Discover Bank on behalf of the Holder of the Seller Certificate that such
change in the Series Yield Factor would not cause the rating of any Class of any
Series then outstanding to be lowered or withdrawn. Any such change shall be
effective as of the first day of the Due Period specified in the notice of the
Master Servicer.

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

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

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

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

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

                                       58
<PAGE>

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

         SECTION 31.        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, Section 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 and all proceeds of such Receivables (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 32.        Issuance of Additional Certificates. The Sellers may
direct the Trustee to issue, at any time and from time to time when this Series
is outstanding, additional Investor Certificates of this Series to increase the
Series Investor Interest, subject to the satisfaction of the conditions
described below:

         (a) The additional Investor Certificates shall increase the Class
Invested Amounts of the Class A Certificates and the Class B Certificates, if
applicable, and all amounts related to the Credit Enhancement for this Series
proportionately from their initial levels.

         (b) The Sellers shall have notified the Trustee, in writing, at least
three days in advance of the date upon which the Series Investor Interest is to
be increased, which notice shall state the designation of the Series under which
the additional Investor Certificates are to be issued and shall include: (i) the
amount of Investor Certificates being offered and the resulting Class Initial
Investor Interests and Series Initial Investor Interest; (ii) the date from
which interest on the additional Investor Certificates will accrue (which may be
a date prior to the date of issuance thereof); (iii) the first Interest Payment
Date on which interest will be paid on such new Investor Certificates; (iv) the
Increased Credit Enhancement Amount and the Increased Issuance Subordinated
Amount for such increase; and (v) any other terms that the Sellers set forth in
such

                                       59
<PAGE>

notice of such increase in the Series Investor Interest to clarify the rights of
holders of such new Investor Certificates or the effect of such new Investor
Certificates on any calculations to be made with respect to this Series, the
Group of which this Series is a member, or the Trust. All such terms shall be
incorporated into and form a part of this Series Supplement on and after the
effective date of such increase in the Series Investor Interest. The notice
shall also include a revised Series Term Sheet that specifies the terms of this
Series after giving effect to the increase.

         (c) 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 that they will rate the additional Investor Certificates the
same as those Investor Certificates currently outstanding in this Series.

         (d) Discover Bank as Servicer shall have arranged for the payment of an
additional amount related to the Credit Enhancement required to increase the
amount on deposit in the Credit Enhancement Account so that such amount, after
giving effect to such increase and the issuance of the additional Investor
Certificates, represents the same percentage of the Series Investor Interest
that the original amount on deposit in the Credit Enhancement Account, plus any
amounts deposited in the Credit Enhancement Account as a result of a
Supplemental Credit Enhancement Event or an Effective Alternative Credit Support
Election, represented of the original Series Investor Interest (such additional
amount, the "Increased Credit Enhancement Amount"). Such payment shall be made
by a Person other than Discover Bank to the Trustee as administrator of the
Credit Enhancement for application in accordance with the provisions of the
Credit Enhancement Agreement. Both the form and the provider of the Increased
Credit Enhancement Amount shall be determined at the time it is to be paid.

         (e) Discover Bank on behalf of the Holder of the Seller Certificate
shall not be required to designate Additional Accounts or convey Participation
Interests to the Trust pursuant to Section 2.10(a) of the Pooling and Servicing
Agreement as a result of the increase in Series Investor Interest.

         (f)      No Amortization Event shall have occurred for this Series.

         (g) No such additional Investor Certificates shall be issued with more
than de minimis original issue discount.

         Upon any increase in the Series Investor Interest, Discover Bank on
behalf of the Holder of the Seller Certificate shall execute and deliver to the
Trustee, and the Trustee shall authenticate and deliver, upon the order of
Discover Bank on behalf of the Holder of the Seller Certificate, new Investor
Certificates in the amount of the increase, each of which shall bear, upon its
face, the designation for this Series.

                                       60

<PAGE>

                                  EXHIBIT A-1-A

                           FORM OF CLASS A CERTIFICATE

                 [FORM OF THE FACE OF THE CLASS A CERTIFICATES]

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

NO.                                                                 $

                                                          CUSIP NO. ____________

                   DISCOVER CARD MASTER TRUST I, SERIES 2003-4
     FLOATING RATE CLASS A, SUBSERIES 1 CREDIT CARD PASS-THROUGH CERTIFICATE

                                  DISCOVER BANK
                      MASTER SERVICER, SERVICER AND SELLER

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

         This certifies that Cede & Co. (the "Class A Certificateholder") is the
registered owner of a Fractional Undivided Interest in the Discover Card Master
Trust I (the "Trust"), the corpus of which consists of a portfolio of
receivables (the "Receivables") existing as of the Cut-Off Date (or, with
respect to Receivables in Additional Accounts, as of the applicable Additional
Account Cut-Off Date) or thereafter created under certain open end credit card
accounts for specified Persons (the "Accounts") originated by Discover Bank
(formerly Greenwood Trust Company), a Delaware banking corporation ("Discover
Bank"), or an affiliate of Discover Bank, and transferred to the Trust by
Discover Bank or one or more Additional Sellers, all monies due or to become due
with respect thereto, all proceeds (as defined in Section 9-102(a)(64) of the
Uniform Commercial Code as in effect in the Applicable State or any successor
provision thereto) of such Receivables pursuant to a Pooling and Servicing
Agreement, dated as of October 1, 1993, by and between U.S. Bank National
Association (formerly First Bank National Association, successor

                                    A-1-A-1
<PAGE>

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

         This Class A Certificate shall not be entitled to any benefit under the
Pooling and Servicing Agreement or any amendment thereto, or the Series
Supplement, dated as of December 30, 2003 (the "Series Supplement"), by and
between the Trustee and Discover Bank or any amendment thereto, or become vested
or obligatory for any purpose until the certificate of authentication hereon
shall have been signed by or on behalf of the Trustee under the Pooling and
Servicing Agreement.

                                    A-1-A-2
<PAGE>

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

                                             DISCOVER BANK

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

                                    A-1-A-3
<PAGE>

                [FORM OF THE REVERSE OF THE CLASS A CERTIFICATES]

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

         To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Pooling and Servicing Agreement or the Series
Supplement; provided, however, that such capitalized terms shall only have the
meanings applicable to Subseries 1 of Series 2003-4. This Class A Certificate is
issued under and is subject to the terms, provisions and conditions of the
Pooling and Servicing Agreement and the Series Supplement, to which Pooling and
Servicing Agreement and Series Supplement, as each may be amended from time to
time, the Class A Certificateholder by virtue of the acceptance hereof assents
and by which the Class A Certificateholder is bound.

         This Class A Certificate is one of a series of Certificates entitled
"Discover Card Master Trust I, Series 2003-4 Floating Rate Class A, Subseries 1
Credit Card Pass-Through Certificates" (the "Class A Certificates"), each of
which represents a Fractional Undivided Interest in the Trust including the
right to receive the Collections and other amounts at the times and in the
amounts specified in the Pooling and Servicing Agreement and the Series
Supplement to be deposited in the Investor Accounts with respect to Discover
Card Master Trust I, Series 2003-4, Subseries 1 or paid to the Class A
Certificateholders. Also issued under the Pooling and Servicing Agreement and
the Series Supplement are Investor Certificates designated as "Discover Card
Master Trust I, Series 2003-4 Floating Rate Class B, Subseries 1 Credit Card
Pass-Through Certificates" (the "Class B Certificates"). The Class A
Certificates and the Class B Certificates are collectively referred to herein as
the Investor Certificates.

         The aggregate interest represented by the Class A Certificates at any
time in the assets of the Trust shall not exceed an amount equal to the Class A
Investor Interest at such time, plus accrued but unpaid Certificate Interest for
the Class A Certificates and any interest thereon. The Class Initial Investor
Interest of the Class A Certificates is $1,100,000,000; plus the face amount of
any Class A Certificates issued in an increase of the Series Investor Interest
pursuant to Section 32 of the Series Supplement. The Class A Invested Amount on
any Distribution Date will be an amount equal to the Class A Initial Investor
Interest minus the sum of (a) the aggregate amount of payments of Certificate
Principal paid to the Class A Certificateholders prior to such Distribution
Date, (b) the aggregate amount of Investor Losses for such Class not reimbursed
prior to such Distribution Date and (c) the aggregate amount of losses of
principal on investments in funds on deposit for the benefit of such Class in
the Series Principal Funding Account. In addition to the Investor Certificates,
a Seller Certificate has been issued pursuant to the Pooling and Servicing
Agreement which represents, at any time, the undivided interest in the Trust not
represented by the Investor Certificates or the investor certificates of any
other Series of investor certificates then outstanding. Subject to the terms and
conditions of the Pooling and Servicing Agreement, the Sellers may from time to
time direct the Trustee, on behalf of the

                                    A-1-A-4
<PAGE>

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

         During the Revolving Period, which begins on the Series Cut-Off Date,
and during the Accumulation Period, Certificate Interest will be distributed on
the 15th day of each calendar month with respect to interest accrued during the
preceding Interest Accrual Period, commencing in January 2004, or if such 15th
day is not a Business Day, on the next succeeding Business Day (an "Interest
Payment Date"), to the Class A Certificateholders of record as of the last day
of the month preceding the related Interest Payment Date. Principal on the Class
A Certificates is scheduled to be paid in a single payment on the Distribution
Date in November 2008 (the "Class A Expected Final Payment Date"), but may be
paid sooner or later and in installments if an Amortization Event occurs. During
the Amortization Period, if any, Certificate Interest and Certificate Principal
collected by the Master Servicer will be distributed to the Class A
Certificateholders on the Distribution Date of each calendar month, commencing
in the month following the commencement of the Amortization Period. In any
event, the final payment of principal of either class will be made no later than
the first Business Day following the Distribution Date in May 2011 (the "Series
Termination Date").

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

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

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

                                    A-1-A-5
<PAGE>

a material adverse effect on any Class of Investor Certificateholders by
reducing in any manner the amount of, or delaying the timing of, distributions
which are required to be made on any Investor Certificate without the consent of
the affected Investor Certificateholders or (b) reduce the aforesaid percentage
required to consent to any such amendment, without the consent of each Investor
Certificateholder of each affected Class then of record; and provided, further,
that the permitted activities of the Trust may be significantly changed only
with the consent of the Holders of Investor Certificates evidencing Fractional
Undivided Interests aggregating not less than 51% of the Aggregate Invested
Amount. Any such amendment and any such consent by the Class A
Certificateholder, including the deemed consent described in the following
sentence, shall be conclusive and binding on such Class A Certificateholder and
upon all future Holders of this Class A Certificate and of any Class A
Certificate issued in exchange hereof or in lieu hereof whether or not notation
thereof is made upon this Class A Certificate. The Class A Certificateholder, by
acceptance of this Class A Certificate, will be deemed to have consented for all
purposes to any amendment that any Seller determines is necessary or desirable
for such Seller to maintain or establish sale accounting treatment under
then-applicable financial accounting standards.

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

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

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

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

                                    A-1-A-6
<PAGE>

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

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

                                    U.S. BANK NATIONAL ASSOCIATION, as Trustee

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

                                    A-1-A-7
<PAGE>

                                  EXHIBIT A-1-B

                           FORM OF CLASS B CERTIFICATE

                 [FORM OF THE FACE OF THE CLASS B CERTIFICATES]

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

NO.                                                             $

                                                      CUSIP NO. ________________

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

                   DISCOVER CARD MASTER TRUST I, SERIES 2003-4
                       FLOATING RATE CLASS B, SUBSERIES 1
                      CREDIT CARD PASS-THROUGH CERTIFICATE

                                  DISCOVER BANK
                      MASTER SERVICER, SERVICER AND SELLER

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

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

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

                                    A-1-B-1
<PAGE>

Delaware banking corporation ("Discover Bank"), or an affiliate of Discover
Bank, and transferred to the Trust by Discover Bank or one or more Additional
Sellers, all monies due or to become due with respect thereto, all proceeds (as
defined in Section 9-102(a)(64) of the Uniform Commercial Code as in effect in
the Applicable State or any successor provision thereto) of such Receivables
pursuant to a Pooling and Servicing Agreement, dated as of October 1, 1993, by
and between U.S. Bank National Association (formerly First Bank National
Association, successor trustee to Bank of America Illinois, formerly Continental
Bank, National Association) as Trustee (the "Trustee") and Discover Bank as
Master Servicer, Servicer and Seller, as amended (the "Pooling and Servicing
Agreement"), a summary of certain of the pertinent provisions of which is set
forth herein below, and benefits under any Credit Enhancement with respect to
any Series of investor certificates issued from time to time pursuant to the
Pooling and Servicing Agreement, to the extent applicable. Reference is hereby
made to the further provisions of this Class B Certificate set forth on the
reverse hereof, and such further provisions shall for all purposes have the same
effect as if set forth at this place.

         This Class B Certificate shall not be entitled to any benefit under the
Pooling and Servicing Agreement or any amendment thereto, or the Series
Supplement, dated as of December 30, 2003 (the "Series Supplement"), by and
between the Trustee and Discover Bank or any amendment thereto, or become vested
or obligatory for any purpose until the certificate of authentication hereon
shall have been signed by or on behalf of the Trustee under the Pooling and
Servicing Agreement.

                                    A-1-B-2
<PAGE>

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

                                             DISCOVER BANK

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

                                    A-1-B-3
<PAGE>

                [FORM OF THE REVERSE OF THE CLASS B CERTIFICATES]

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

         To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Pooling and Servicing Agreement or the Series
Supplement; provided, however, that such capitalized terms shall only have the
meanings applicable to Subseries 1 of Series 2003-4. This Class B Certificate is
issued under and is subject to the terms, provisions and conditions of the
Pooling and Servicing Agreement and the Series Supplement, to which Pooling and
Servicing Agreement and Series Supplement, as each may be amended from time to
time, the Class B Certificateholder by virtue of the acceptance hereof assents
and by which the Class B Certificateholder is bound.

         This Class B Certificate is one of a class of Certificates entitled
"Discover Card Master Trust I, Series 2003-4 Floating Rate Class B, Subseries 1
Credit Card Pass-Through Certificates" (the "Class B Certificates"), each of
which represents a Fractional Undivided Interest in the Trust including the
right to receive the Collections and other amounts at the times and in the
amounts specified in the Pooling and Servicing Agreement and the Series
Supplement to be deposited in the Investor Accounts with respect to Discover
Card Master Trust I, Series 2003-4, Subseries 1 or paid to the Class B
Certificateholders. Also issued under the Pooling and Servicing Agreement and
the Series Supplement are Investor Certificates designated as "Discover Card
Master Trust I, Series 2003-4 Floating Rate Class A, Subseries 1 Credit Card
Pass-Through Certificates" (the "Class A Certificates"). The Class A
Certificates and the Class B Certificates are collectively referred to herein as
the Investor Certificates.

         The aggregate interest represented by the Class B Certificates at any
time in the assets of the Trust shall not exceed an amount equal to the Class
Investor Interest of the Class B Certificates at such time, plus accrued but
unpaid Certificate Interest for the Class B Certificates and any interest
thereon. The Class B Certificateholders are also entitled to the benefit of the
Credit Enhancement, to the extent provided in the Series Supplement. The Class
Initial Investor Interest of the Class B Certificates is $57,895,000; plus the
face amount of any Class B Certificates issued in an increase of the Series
Investor Interest pursuant to Section 32 of the Series Supplement. The Class B
Invested Amount on any Distribution Date will be an amount equal to the Class B
Initial Investor Interest minus the sum of (a) the aggregate amount of payments
of Certificate Principal paid to the Class B Certificateholders prior to such
Distribution Date, (b) the aggregate amount of Investor Losses for such Class
not reimbursed prior to such Distribution Date and (c) the aggregate amount of
losses of principal on investments in funds on deposit for the benefit of such
Class in the Series Principal Funding Account. In addition to the Investor
Certificates, a Seller Certificate has been issued pursuant to the Pooling and
Servicing Agreement which represents, at any time, the undivided interest in the
Trust not represented by the Investor Certificates or the investor certificates
of any other Series of investor certificates

                                    A-1-B-4
<PAGE>

then outstanding. Subject to the terms and conditions of the Pooling and
Servicing Agreement, the Sellers may from time to time direct the Trustee, on
behalf of the Trust, to issue one or more new Series of investor certificates,
which will represent Fractional Undivided Interests in the Trust.

         During the Revolving Period, which begins on the Series Cut-Off Date,
and during the Accumulation Period, Certificate Interest will be distributed on
the 15th day of each calendar month with respect to interest accrued during the
preceding Interest Accrual Period, commencing in January 2004, or if such 15th
day is not a Business Day, on the next succeeding Business Day (each, an
"Interest Payment Date"), to the Class B Certificateholders of record as of the
last day of the month preceding the related Interest Payment Date. Principal on
the Class B Certificates is scheduled to be paid in a single payment on the
Distribution Date in December 2008 (the "Class B Expected Final Payment Date"),
but may be paid sooner or later or in installments under certain circumstances.
During the Amortization Period, if any, Certificate Interest and Certificate
Principal collected by the Master Servicer will be distributed to the Class B
Certificateholders on the Distribution Date of each calendar month, commencing
in the month following the commencement of the Amortization Period; provided,
however, that no Certificate Principal will be distributed to the Class B
Certificateholders until the Class A Investor Interest has been reduced to zero.
The rights of the Class B Certificateholders to receive the distributions to
which they would otherwise be entitled on the Receivables will be subordinated
to the rights of the Class A Certificateholders and the Master Servicer to the
extent described in the Pooling and Servicing Agreement and Series Supplement.
In any event, the final payment of principal of either Class will be made no
later than the first Business Day following the Distribution Date in May 2011
(the "Series Termination Date").

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

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

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

                                    A-1-B-5
<PAGE>

time by the Master Servicer, the Sellers and the Trustee in certain cases (some
of which require confirmation from the Rating Agencies that such amendment will
not result in the downgrading or withdrawal of the rating assigned to the
Investor Certificates) without the consent of the Investor Certificateholders,
and in all other cases with the consent of the Investor Certificateholders
owning Fractional Undivided Interests aggregating not less than 66-2/3% of the
Class Invested Amount of each such affected Class (and with confirmation from
the Rating Agencies that such amendment will not result in the downgrading or
withdrawal of the rating assigned to the Investor Certificates); provided,
however, that no such amendment shall (a) have a material adverse effect on any
Class of Investor Certificateholders by reducing in any manner the amount of, or
delaying the timing of, distributions which are required to be made on any
Investor Certificate without the consent of the affected Investor
Certificateholders or (b) reduce the aforesaid percentage required to consent to
any such amendment, without the consent of each Investor Certificateholder of
each affected Class then of record; and, provided, further, that the permitted
activities of the Trust may be significantly changed only with the consent of
the Holders of Investor Certificates evidencing Fractional Undivided Interests
aggregating not less than 51% of the Aggregate Invested Amount. Any such
amendment and any such consent by the Class B Certificateholder, including the
deemed consent described in the following sentence, shall be conclusive and
binding on such Class B Certificateholder and upon all future Holders of this
Class B Certificate and of any Class B Certificate issued in exchange hereof or
in lieu hereof whether or not notation thereof is made upon this Class B
Certificate. The Class B Certificateholder, by acceptance of this Class B
Certificate, will be deemed to have consented for all purposes to any amendment
that any Seller determines is necessary or desirable for such Seller to maintain
or establish sale accounting treatment under then-applicable financial
accounting standards.

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

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

                                    A-1-B-6
<PAGE>

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

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

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

                                    A-1-B-7
<PAGE>

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

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

                                    U.S. BANK NATIONAL ASSOCIATION, as Trustee

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

                                    A-1-B-8
<PAGE>

                                  EXHIBIT A-2-A

                           FORM OF CLASS A CERTIFICATE

                 [FORM OF THE FACE OF THE CLASS A CERTIFICATES]

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

NO.                                                                 $

                                                          CUSIP NO. ____________

                   DISCOVER CARD MASTER TRUST I, SERIES 2003-4
     FLOATING RATE CLASS A, SUBSERIES 2 CREDIT CARD PASS-THROUGH CERTIFICATE

                                  DISCOVER BANK
                      MASTER SERVICER, SERVICER AND SELLER

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

         This certifies that Cede & Co. (the "Class A Certificateholder") is the
registered owner of a Fractional Undivided Interest in the Discover Card Master
Trust I (the "Trust"), the corpus of which consists of a portfolio of
receivables (the "Receivables") existing as of the Cut-Off Date (or, with
respect to Receivables in Additional Accounts, as of the applicable Additional
Account Cut-Off Date) or thereafter created under certain open end credit card
accounts for specified Persons (the "Accounts") originated by Discover Bank
(formerly Greenwood Trust Company), a Delaware banking corporation ("Discover
Bank"), or an affiliate of Discover Bank, and transferred to the Trust by
Discover Bank or one or more Additional Sellers, all monies due or to become due
with respect thereto, all proceeds (as defined in Section 9-102(a)(64) of the
Uniform Commercial Code as in effect in the Applicable State or any successor
provision thereto) of such Receivables pursuant to a Pooling and Servicing
Agreement, dated as of October 1, 1993, by and between U.S. Bank National
Association (formerly First Bank National Association, successor

                                    A-2-A-1
<PAGE>

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

         This Class A Certificate shall not be entitled to any benefit under the
Pooling and Servicing Agreement or any amendment thereto, or the Series
Supplement, dated as of December 30, 2003 (the "Series Supplement"), by and
between the Trustee and Discover Bank or any amendment thereto, or become vested
or obligatory for any purpose until the certificate of authentication hereon
shall have been signed by or on behalf of the Trustee under the Pooling and
Servicing Agreement.

                                    A-2-A-2
<PAGE>

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

                                             DISCOVER BANK

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

                                    A-2-A-3
<PAGE>

                [FORM OF THE REVERSE OF THE CLASS A CERTIFICATES]

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

         To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Pooling and Servicing Agreement or the Series
Supplement; provided, however, that such capitalized terms shall only have the
meanings applicable to Subseries 2 of Series 2003-4. This Class A Certificate is
issued under and is subject to the terms, provisions and conditions of the
Pooling and Servicing Agreement and the Series Supplement, to which Pooling and
Servicing Agreement and Series Supplement, as each may be amended from time to
time, the Class A Certificateholder by virtue of the acceptance hereof assents
and by which the Class A Certificateholder is bound.

         This Class A Certificate is one of a series of Certificates entitled
"Discover Card Master Trust I, Series 2003-4 Floating Rate Class A, Subseries 2
Credit Card Pass-Through Certificates" (the "Class A Certificates"), each of
which represents a Fractional Undivided Interest in the Trust including the
right to receive the Collections and other amounts at the times and in the
amounts specified in the Pooling and Servicing Agreement and the Series
Supplement to be deposited in the Investor Accounts with respect to Discover
Card Master Trust I, Series 2003-4, Subseries 2 or paid to the Class A
Certificateholders. Also issued under the Pooling and Servicing Agreement and
the Series Supplement are Investor Certificates designated as "Discover Card
Master Trust I, Series 2003-4 Floating Rate Class B, Subseries 2 Credit Card
Pass-Through Certificates" (the "Class B Certificates"). The Class A
Certificates and the Class B Certificates are collectively referred to herein as
the Investor Certificates.

         The aggregate interest represented by the Class A Certificates at any
time in the assets of the Trust shall not exceed an amount equal to the Class A
Investor Interest at such time, plus accrued but unpaid Certificate Interest for
the Class A Certificates and any interest thereon. The Class Initial Investor
Interest of the Class A Certificates is $750,000,000; plus the face amount of
any Class A Certificates issued in an increase of the Series Investor Interest
pursuant to Section 32 of the Series Supplement. The Class A Invested Amount on
any Distribution Date will be an amount equal to the Class A Initial Investor
Interest minus the sum of (a) the aggregate amount of payments of Certificate
Principal paid to the Class A Certificateholders prior to such Distribution
Date, (b) the aggregate amount of Investor Losses for such Class not reimbursed
prior to such Distribution Date and (c) the aggregate amount of losses of
principal on investments in funds on deposit for the benefit of such Class in
the Series Principal Funding Account. In addition to the Investor Certificates,
a Seller Certificate has been issued pursuant to the Pooling and Servicing
Agreement which represents, at any time, the undivided interest in the Trust not
represented by the Investor Certificates or the investor certificates of any
other Series of investor certificates then outstanding. Subject to the terms and
conditions of the Pooling and Servicing Agreement, the Sellers may from time to
time direct the Trustee, on behalf of the

                                    A-2-A-4
<PAGE>

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

         During the Revolving Period, which begins on the Series Cut-Off Date,
and during the Accumulation Period, Certificate Interest will be distributed on
the 15th day of each calendar month with respect to interest accrued during the
preceding Interest Accrual Period, commencing in January 2004, or if such 15th
day is not a Business Day, on the next succeeding Business Day (an "Interest
Payment Date"), to the Class A Certificateholders of record as of the last day
of the month preceding the related Interest Payment Date. Principal on the Class
A Certificates is scheduled to be paid in a single payment on the Distribution
Date in November 2010 (the "Class A Expected Final Payment Date"), but may be
paid sooner or later and in installments if an Amortization Event occurs. During
the Amortization Period, if any, Certificate Interest and Certificate Principal
collected by the Master Servicer will be distributed to the Class A
Certificateholders on the Distribution Date of each calendar month, commencing
in the month following the commencement of the Amortization Period. In any
event, the final payment of principal of either class will be made no later than
the first Business Day following the Distribution Date in May 2013 (the "Series
Termination Date").

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

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

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

                                    A-2-A-5
<PAGE>

a material adverse effect on any Class of Investor Certificateholders by
reducing in any manner the amount of, or delaying the timing of, distributions
which are required to be made on any Investor Certificate without the consent of
the affected Investor Certificateholders or (b) reduce the aforesaid percentage
required to consent to any such amendment, without the consent of each Investor
Certificateholder of each affected Class then of record; and provided, further,
that the permitted activities of the Trust may be significantly changed only
with the consent of the Holders of Investor Certificates evidencing Fractional
Undivided Interests aggregating not less than 51% of the Aggregate Invested
Amount. Any such amendment and any such consent by the Class A
Certificateholder, including the deemed consent described in the following
sentence, shall be conclusive and binding on such Class A Certificateholder and
upon all future Holders of this Class A Certificate and of any Class A
Certificate issued in exchange hereof or in lieu hereof whether or not notation
thereof is made upon this Class A Certificate. The Class A Certificateholder, by
acceptance of this Class A Certificate, will be deemed to have consented for all
purposes to any amendment that any Seller determines is necessary or desirable
for such Seller to maintain or establish sale accounting treatment under
then-applicable financial accounting standards.

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

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

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

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

                                    A-2-A-6
<PAGE>

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

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

                                    U.S. BANK NATIONAL ASSOCIATION, as Trustee

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

                                    A-2-A-7
<PAGE>

                                  EXHIBIT A-2-B

                           FORM OF CLASS B CERTIFICATE

                 [FORM OF THE FACE OF THE CLASS B CERTIFICATES]

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

NO.                                                             $

                                                      CUSIP NO. ________________

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

                   DISCOVER CARD MASTER TRUST I, SERIES 2003-4
                       FLOATING RATE CLASS B, SUBSERIES 2
                      CREDIT CARD PASS-THROUGH CERTIFICATE

                                  DISCOVER BANK
                      MASTER SERVICER, SERVICER AND SELLER

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

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

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

                                    A-2-B-1
<PAGE>

Delaware banking corporation ("Discover Bank"), or an affiliate of Discover
Bank, and transferred to the Trust by Discover Bank or one or more Additional
Sellers, all monies due or to become due with respect thereto, all proceeds (as
defined in Section 9-102(a)(64) of the Uniform Commercial Code as in effect in
the Applicable State or any successor provision thereto) of such Receivables
pursuant to a Pooling and Servicing Agreement, dated as of October 1, 1993, by
and between U.S. Bank National Association (formerly First Bank National
Association, successor trustee to Bank of America Illinois, formerly Continental
Bank, National Association) as Trustee (the "Trustee") and Discover Bank as
Master Servicer, Servicer and Seller, as amended (the "Pooling and Servicing
Agreement"), a summary of certain of the pertinent provisions of which is set
forth herein below, and benefits under any Credit Enhancement with respect to
any Series of investor certificates issued from time to time pursuant to the
Pooling and Servicing Agreement, to the extent applicable. Reference is hereby
made to the further provisions of this Class B Certificate set forth on the
reverse hereof, and such further provisions shall for all purposes have the same
effect as if set forth at this place.

         This Class B Certificate shall not be entitled to any benefit under the
Pooling and Servicing Agreement or any amendment thereto, or the Series
Supplement, dated as of December 30, 2003 (the "Series Supplement"), by and
between the Trustee and Discover Bank or any amendment thereto, or become vested
or obligatory for any purpose until the certificate of authentication hereon
shall have been signed by or on behalf of the Trustee under the Pooling and
Servicing Agreement.

                                    A-2-B-2
<PAGE>

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

                                             DISCOVER BANK

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

                                    A-2-B-3
<PAGE>

                [FORM OF THE REVERSE OF THE CLASS B CERTIFICATES]

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

         To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Pooling and Servicing Agreement or the Series
Supplement; provided, however, that such capitalized terms shall only have the
meanings applicable to Subseries 2 of Series 2003-4. This Class B Certificate is
issued under and is subject to the terms, provisions and conditions of the
Pooling and Servicing Agreement and the Series Supplement, to which Pooling and
Servicing Agreement and Series Supplement, as each may be amended from time to
time, the Class B Certificateholder by virtue of the acceptance hereof assents
and by which the Class B Certificateholder is bound.

         This Class B Certificate is one of a class of Certificates entitled
"Discover Card Master Trust I, Series 2003-4 Floating Rate Class B, Subseries 2
Credit Card Pass-Through Certificates" (the "Class B Certificates"), each of
which represents a Fractional Undivided Interest in the Trust including the
right to receive the Collections and other amounts at the times and in the
amounts specified in the Pooling and Servicing Agreement and the Series
Supplement to be deposited in the Investor Accounts with respect to Discover
Card Master Trust I, Series 2003-4, Subseries 2 or paid to the Class B
Certificateholders. Also issued under the Pooling and Servicing Agreement and
the Series Supplement are Investor Certificates designated as "Discover Card
Master Trust I, Series 2003-4 Floating Rate Class A, Subseries 2 Credit Card
Pass-Through Certificates" (the "Class A Certificates"). The Class A
Certificates and the Class B Certificates are collectively referred to herein as
the Investor Certificates.

         The aggregate interest represented by the Class B Certificates at any
time in the assets of the Trust shall not exceed an amount equal to the Class
Investor Interest of the Class B Certificates at such time, plus accrued but
unpaid Certificate Interest for the Class B Certificates and any interest
thereon. The Class B Certificateholders are also entitled to the benefit of the
Credit Enhancement, to the extent provided in the Series Supplement. The Class
Initial Investor Interest of the Class B Certificates is $39,474,000; plus the
face amount of any Class B Certificates issued in an increase of the Series
Investor Interest pursuant to Section 32 of the Series Supplement. The Class B
Invested Amount on any Distribution Date will be an amount equal to the Class B
Initial Investor Interest minus the sum of (a) the aggregate amount of payments
of Certificate Principal paid to the Class B Certificateholders prior to such
Distribution Date, (b) the aggregate amount of Investor Losses for such Class
not reimbursed prior to such Distribution Date and (c) the aggregate amount of
losses of principal on investments in funds on deposit for the benefit of such
Class in the Series Principal Funding Account. In addition to the Investor
Certificates, a Seller Certificate has been issued pursuant to the Pooling and
Servicing Agreement which represents, at any time, the undivided interest in the
Trust not represented by the Investor Certificates or the investor certificates
of any other Series of investor certificates

                                    A-2-B-4
<PAGE>

then outstanding. Subject to the terms and conditions of the Pooling and
Servicing Agreement, the Sellers may from time to time direct the Trustee, on
behalf of the Trust, to issue one or more new Series of investor certificates,
which will represent Fractional Undivided Interests in the Trust.

         During the Revolving Period, which begins on the Series Cut-Off Date,
and during the Accumulation Period, Certificate Interest will be distributed on
the 15th day of each calendar month with respect to interest accrued during the
preceding Interest Accrual Period, commencing in January 2004, or if such 15th
day is not a Business Day, on the next succeeding Business Day (each, an
"Interest Payment Date"), to the Class B Certificateholders of record as of the
last day of the month preceding the related Interest Payment Date. Principal on
the Class B Certificates is scheduled to be paid in a single payment on the
Distribution Date in December 2010 (the "Class B Expected Final Payment Date"),
but may be paid sooner or later or in installments under certain circumstances.
During the Amortization Period, if any, Certificate Interest and Certificate
Principal collected by the Master Servicer will be distributed to the Class B
Certificateholders on the Distribution Date of each calendar month, commencing
in the month following the commencement of the Amortization Period; provided,
however, that no Certificate Principal will be distributed to the Class B
Certificateholders until the Class A Investor Interest has been reduced to zero.
The rights of the Class B Certificateholders to receive the distributions to
which they would otherwise be entitled on the Receivables will be subordinated
to the rights of the Class A Certificateholders and the Master Servicer to the
extent described in the Pooling and Servicing Agreement and Series Supplement.
In any event, the final payment of principal of either Class will be made no
later than the first Business Day following the Distribution Date in May 2013
(the "Series Termination Date").

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

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

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

                                    A-2-B-5
<PAGE>

time by the Master Servicer, the Sellers and the Trustee in certain cases (some
of which require confirmation from the Rating Agencies that such amendment will
not result in the downgrading or withdrawal of the rating assigned to the
Investor Certificates) without the consent of the Investor Certificateholders,
and in all other cases with the consent of the Investor Certificateholders
owning Fractional Undivided Interests aggregating not less than 66-2/3% of the
Class Invested Amount of each such affected Class (and with confirmation from
the Rating Agencies that such amendment will not result in the downgrading or
withdrawal of the rating assigned to the Investor Certificates); provided,
however, that no such amendment shall (a) have a material adverse effect on any
Class of Investor Certificateholders by reducing in any manner the amount of, or
delaying the timing of, distributions which are required to be made on any
Investor Certificate without the consent of the affected Investor
Certificateholders or (b) reduce the aforesaid percentage required to consent to
any such amendment, without the consent of each Investor Certificateholder of
each affected Class then of record; and, provided, further, that the permitted
activities of the Trust may be significantly changed only with the consent of
the Holders of Investor Certificates evidencing Fractional Undivided Interests
aggregating not less than 51% of the Aggregate Invested Amount. Any such
amendment and any such consent by the Class B Certificateholder, including the
deemed consent described in the following sentence, shall be conclusive and
binding on such Class B Certificateholder and upon all future Holders of this
Class B Certificate and of any Class B Certificate issued in exchange hereof or
in lieu hereof whether or not notation thereof is made upon this Class B
Certificate. The Class B Certificateholder, by acceptance of this Class B
Certificate, will be deemed to have consented for all purposes to any amendment
that any Seller determines is necessary or desirable for such Seller to maintain
or establish sale accounting treatment under then-applicable financial
accounting standards.

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

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

                                    A-2-B-6
<PAGE>

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

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

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

                                    A-2-B-7
<PAGE>

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

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

                                    U.S. BANK NATIONAL ASSOCIATION, as Trustee

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

                                    A-2-B-8
<PAGE>

                                   Exhibit B-1

             Form of Investor Certificateholders' Monthly Statement

                          Discover Card Master Trust I

                  Series 2003-4, Subseries 1 Monthly Statement

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

Pursuant to the Series Supplement dated as of December 30, 2003 relating to the
Pooling and Servicing Agreement dated as of October 1, 1993 by and between
Discover Bank and U.S. Bank National Association as Trustee, as amended, the
Trustee is required to prepare certain information each month regarding current
distributions to investors and the performance of the Trust. We have set forth
below this information for the Distribution Date listed above, as well as for
the calendar month ended on the date listed above.

1.       Payments to investors in Series 2003-4, Subseries 1 on this
         Distribution Date (per $1,000 of Class Initial Investor Interest)

<Table>
<Caption>
                                        Total                      Interest                 Principal
<S>                                  <C>                        <C>                       <C>

         Series 2003-4, Subseries 1
            Class A                  $____________              $____________             $____________

            Class B                  $____________              $____________             $____________

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

         (a)      Aggregate Investor Interest                                             $____________

                  Seller Interest                                                         $____________

                  TOTAL MASTER TRUST                                                      $____________

         (b)      Group One Investor Interest                                             $____________

         (c)      Series 2003-4, Subseries 1 Investor Interest                            $____________

         (d)      Class A Investor Interest                                               $____________

                  Class B Investor Interest                                               $____________
</Table>

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

<Table>
<Caption>
                                                               Finance Charge    Principal        Yield Collections/
                                                               Collections       Collections      Additional Funds
<S>                                                            <C>               <C>              <C>

         (a)      Allocation of Collections between
                  Investors and Seller

                  Aggregate Investor Allocation                $____________     $___________     N/A

                  Seller Allocation                            $____________     $___________     N/A

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

         (c)      Series 2003-4, Subseries 1 Allocations       $____________     $___________     N/A

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

                  Class B Allocations                          $____________     $___________     N/A

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

         (f)      Finance Charge Collections as a monthly percentage of Master
                  Trust Receivables at the beginning of [Month][Year]
                                                                                                   ____________%
</Table>

                                     B-1-1
<PAGE>

<Table>
<S>                                                            <C>               <C>              <C>
         (g)      Total Collections as a monthly percentage of Master Trust
                  Receivables at the beginning of [Month][Year]                                    ____________%
</Table>

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

<Table>
<Caption>
                        Deposits into the SPFA on      Deficit Amount on
                          this Distribution Date     this Distribution Date     SPFA Balance       Investment Income
<S>                    <C>                           <C>                        <C>                <C>

         Series 2003-4,
         Subseries 1                $________        $________                  $________          $_________
</Table>

5.       Information concerning amount of Controlled Liquidation Payments

<Table>
<Caption>
                                 Amount paid on this      Deficit Amount on this    Total Payments through
                                  Distribution Date          Distribution Date      this Distribution Date
<S>                              <C>                      <C>                       <C>

         Series 2003-4,
         Subseries 1
         Class A                         N/A                        N/A                       N/A
         Class B                         N/A                        N/A                       N/A
</Table>

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

<Table>
<Caption>
                                                       Deposits into the SIFA
                                                      on this Distribution Date           SIFA Balance
<S>                                                   <C>                                <C>

         Series 2003-4, Subseries 1                                                       $_________
</Table>

7.       Investor Charged-Off Amount

<Table>
<Caption>
                                                      [Month][Year]                       Cumulative Investor
                                                                                          Charged-Off Amount
<S>                                                   <C>                                 <C>

         (a)      Group One                           $_________                          $_________

         (b)      Series 2003-4, Subseries 1          $_________                          $_________

         (c)      Class A                             $_________                          $_________

                  Class B                             $_________                          $_________

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

8.       Investor Losses for [Month][Year]

<Table>
<Caption>
                                                      Total                               per $1,000 of initial
                                                                                          Investor Interest
<S>                                                   <C>                                 <C>

         (a)      Group One                           $_________                          $_________

         (b)      Series 2003-4, Subseries 1          $_________                          $_________

         (c)      Class A                             $_________                          $_________

                  Class B                             $_________                          $_________
</Table>

                                     B-1-2
<PAGE>

9.       Reimbursement of Investor Losses for [Month][Year]

<Table>
<Caption>
                                                      Total                      per $1,000 of initial
                                                                                 Investor Interest
<S>                                                   <C>                        <C>

         (a)      Group  One                          $_________                 $_________

         (b)      Series 2003-4, Subseries 1          $_________                 $_________

         (c)      Class A                             $_________                 $_________

                  Class B                             $_________                 $_________
</Table>

10.      Aggregate amount of Unreimbursed Investor Losses for [Month][Year]

<Table>
<Caption>
                                                      Total                      per $1,000 of initial
                                                                                 Investor Interest
<S>                                                   <C>                        <C>

         (a)      Group One                           $_________                 $_________

         (b)      Series 2003-4, Subseries 1          $_________                 $_________

         (c)      Class A                             $_________                 $_________

                  Class B                             $_________                 $_________
</Table>

11.      Investor Monthly Servicing Fee payable on this Distribution Date

<Table>
<S>                                                                              <C>
         (a)      Group One                                                      $_________

         (b)      Series 2003-4, Subseries 1                                     $_________

         (c)      Class A                                                        $_________

                  Class B                                                        $_________
</Table>

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

<Table>
<Caption>
                                                                                 as a percentage of
                                                      Total                      Class A Invested Amount
<S>                                                   <C>                        <C>

         Series 2003-4  Class B, Subseries 1          $____________              ________ %
</Table>

13.      Total Available Credit Enhancement Amounts

<Table>
<Caption>
                                                      Shared Amount              Class B Amount
<S>                                                   <C>                        <C>

         (a)      Maximum Amount on this Distribution       N/A                  $__________
                  Date

         (b)      Available Amount on this Distribution     N/A                  $__________
                  Date

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

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

                                     B-1-3
<PAGE>

14.      Delinquency Summary

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

                                                      Delinquent Amount          Percentage of ending
         Payment Status                               ending balance             Receivables outstanding

         30 - 59 days                                 $__________________        __________%

         60 - 179 days                                $__________________        __________%
</Table>

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

         (a)      Group One(2)                        __________%

         (b)      Series 2003-4, Subseries 1(3)       __________%

16.      Net Charge-Offs on this Distribution Date

<Table>
<S>                                                                              <C>
         Charges-offs net of recoveries as an annualized percentage of Principal
         Receivables at the beginning of [Month][Year](4)                        __________%
</Table>

                                             U.S. BANK NATIONAL ASSOCIATION,
                                             as Trustee

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

----------

(1)      Investors should refer only to the higher of the Group Excess Spread
         Percentage (Item 15(a)) and the Series Excess Spread Percentage (Item
         15(b)) in assessing the current performance of the Trust and the
         Receivables. If necessary, the Trust will use funds available from
         series or subseries with positive Series Excess Spreads to cover
         expenses (as detailed in note 3 below) for series or subseries, if any,
         with negative Series Excess Spreads. The Group Excess Spread Percentage
         reflects the aggregate amount of Series Excess Spread remaining after
         all Trust expenses for all series, including each subseries, have been
         paid or reimbursed, including expenses paid or reimbursed through such
         reallocations of Series Excess Spread. The Group Excess Spread
         Percentage expresses this amount as a percentage of the Aggregate
         Investor Interest in the Trust as of the beginning of the month.

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

(3)      Series Excess Spread is the difference between (a) the sum of Finance
         Charge Collections, Yield Collections, Additional Funds and Investment
         Income for any Class of this Series (see Item 3(c)), and (b) the sum of
         (i) the monthly interest for this Series (see "Deposits into the SIFA
         on this Distribution Date" in Item 6), (ii) the monthly servicing fee
         for this Series (see Item 11(b)), (iii) the Investor Charged-Off Amount
         (see Item 7(b)), and (iv) the Credit Enhancement Fee (see Item 13(d)),
         in each case for this Distribution Date. [For purposes of determining
         Group Excess Spread, Series Excess Spread is the amount calculated as
         described above minus the amount of any payment by the Trust under the
         Trust's subordinated interest rate swap for this series.] The Series
         Excess Spread Percentage is equal to the Series Excess Spread,
         multiplied by twelve, divided by the Series Investor Interest for this
         Series at the beginning of the period.

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

                                     B-1-4
<PAGE>

                                   Exhibit B-2

             Form of Investor Certificateholders' Monthly Statement

                          Discover Card Master Trust I

                  Series 2003-4, Subseries 2 Monthly Statement

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

Pursuant to the Series Supplement dated as of December 30, 2003 relating to the
Pooling and Servicing Agreement dated as of October 1, 1993 by and between
Discover Bank and U.S. Bank National Association as Trustee, as amended, the
Trustee is required to prepare certain information each month regarding current
distributions to investors and the performance of the Trust. We have set forth
below this information for the Distribution Date listed above, as well as for
the calendar month ended on the date listed above.

1.       Payments to investors in Series 2003-4, Subseries 2 on this
         Distribution Date (per $1,000 of Class Initial Investor Interest)

<Table>
<Caption>
                                                Total                     Interest                  Principal
<S>                                          <C>                        <C>                       <C>

         Series 2003-4, Subseries 2
            Class A                          $____________              $____________             $____________

            Class B                          $____________              $____________             $____________
</Table>

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

<Table>
<S>                                                                                                <C>
         (a)      Aggregate Investor Interest                                                      $____________

                  Seller Interest                                                                  $____________

                  TOTAL MASTER TRUST                                                               $____________

         (b)      Group One Investor Interest                                                      $____________

         (c)      Series 2003-4, Subseries 2 Investor Interest                                     $____________

         (d)      Class A Investor Interest                                                        $____________

                  Class B Investor Interest                                                        $____________
</Table>

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

<Table>
<Caption>
                                                      Finance Charge             Principal         Yield Collections/
                                                      Collections                Collections       Additional Funds
<S>                                                   <C>                        <C>               <C>

         (a)      Allocation of Collections between
                  Investors and Seller

                  Aggregate Investor Allocation       $____________              $___________      N/A

                  Seller Allocation                   $____________              $___________      N/A

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

         (c)      Series 2003-4, Subseries 2
                  Allocations                         $____________              $___________      N/A

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

                  Class B Allocations                 $____________              $___________      N/A

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

         (f)      Finance Charge Collections as a monthly percentage of Master
                  Trust Receivables at the beginning of [Month][Year]
                                                                                                   ____________%
</Table>

                                     B-2-1
<PAGE>

<Table>
<S>                                                   <C>                        <C>               <C>

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

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

<Table>
<Caption>
                                    Deposits into the SPFA on     Deficit Amount on
                                     this Distribution Date     this Distribution Date    SPFA Balance      Investment Income
<S>                                 <C>                         <C>                       <C>               <C>

         Series 2003-4, Subseries 2          $________                 $________            $________          $_________
</Table>

5.       Information concerning amount of Controlled Liquidation Payments

<Table>
<Caption>
                                 Amount paid on this      Deficit Amount on this    Total Payments through
                                  Distribution Date          Distribution Date      this Distribution Date
<S>                             <C>                      <C>                       <C>

         Series 2003-4,
         Subseries 2
         Class A                         N/A                        N/A                       N/A

         Class B                         N/A                        N/A                       N/A
</Table>

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

<Table>
<Caption>
                                                      Deposits into the SIFA
                                                      on this Distribution Date  SIFA Balance
<S>                                                   <C>                        <C>

         Series 2003-4, Subseries 2                                              $_________
</Table>

7.       Investor Charged-Off Amount

<Table>
<Caption>
                                                      [Month][Year]              Cumulative Investor
                                                                                 Charged-Off Amount
<S>                                                   <C>                        <C>

         (a)      Group One                           $_________                 $_________

         (b)      Series 2003-4, Subseries 2          $_________                 $_________

         (c)      Class A                             $_________                 $_________

                  Class B                             $_________                 $_________

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

8.       Investor Losses for [Month][Year]

<Table>
<Caption>
                                                      Total                      per $1,000 of initial
                                                                                 Investor Interest
<S>                                                   <C>                        <C>

         (a)      Group One                           $_________                 $_________

         (b)      Series 2003-4, Subseries 2          $_________                 $_________

         (c)      Class A                             $_________                 $_________

                  Class B                             $_________                 $_________
</Table>

                                     B-2-2
<PAGE>

9.       Reimbursement of Investor Losses for [Month][Year]

<Table>
<Caption>
                                                      Total                      per $1,000 of initial
                                                                                 Investor Interest
<S>                                                   <C>                        <C>

         (a)      Group  One                          $_________                 $_________

         (b)      Series 2003-4, Subseries 2          $_________                 $_________

         (c)      Class A                             $_________                 $_________

                  Class B                             $_________                 $_________
</Table>

10.      Aggregate amount of Unreimbursed Investor Losses for [Month][Year]

<Table>
<Caption>
                                                      Total                      per $1,000 of initial
                                                                                 Investor Interest
<S>                                                   <C>                        <C>

         (a)      Group One                           $_________                 $_________

         (b)      Series 2003-4, Subseries 2          $_________                 $_________

         (c)      Class A                             $_________                 $_________

                  Class B                             $_________                 $_________
</Table>

11.      Investor Monthly Servicing Fee payable on this Distribution Date

<Table>
<S>                                                   <C>                        <C>
         (a)      Group One                                                      $_________

         (b)      Series 2003-4, Subseries 2                                     $_________

         (c)      Class A                                                        $_________

                  Class B                                                        $_________
</Table>

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

<Table>
<Caption>
                                                                                 as a percentage of
                                                      Total                      Class A Invested Amount
<S>                                                   <C>                        <C>

         Series 2003-4  Class B, Subseries 2          $____________              ________ %
</Table>

13.      Total Available Credit Enhancement Amounts

<Table>
<Caption>
                                                      Shared Amount              Class B Amount
<S>                                                   <C>                        <C>

         (a)      Maximum Amount on this Distribution         N/A                $__________
                  Date

         (b)      Available Amount on this Distribution       N/A                $__________
                  Date

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

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

                                     B-2-3
<PAGE>

14.      Delinquency Summary

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

<Table>
<Caption>
                                                      Delinquent Amount          Percentage of ending
         Payment Status                               ending balance             Receivables outstanding
<S>                                                   <C>                        <C>

         30 - 59 days                                 $__________________        __________%

         60 - 179 days                                $__________________        __________%
</Table>

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

         (a)      Group One(2)                        __________%

         (b)      Series 2003-4, Subseries 2(3)       __________%

16.      Net Charge-Offs on this Distribution Date

<Table>
<S>                                                                              <C>
         Charges-offs net of recoveries as an annualized percentage of Principal
         Receivables at the beginning of [Month][Year](4)                        __________%
</Table>

                                             U.S. BANK NATIONAL ASSOCIATION,
                                             as Trustee

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

----------

(1)      Investors should refer only to the higher of the Group Excess Spread
         Percentage (Item 15(a)) and the Series Excess Spread Percentage (Item
         15(b)) in assessing the current performance of the Trust and the
         Receivables. If necessary, the Trust will use funds available from
         series or subseries with positive Series Excess Spreads to cover
         expenses (as detailed in note 3 below) for series or subseries, if any,
         with negative Series Excess Spreads. The Group Excess Spread Percentage
         reflects the aggregate amount of Series Excess Spread remaining after
         all Trust expenses for all series, including each subseries, have been
         paid or reimbursed, including expenses paid or reimbursed through such
         reallocations of Series Excess Spread. The Group Excess Spread
         Percentage expresses this amount as a percentage of the Aggregate
         Investor Interest in the Trust as of the beginning of the month.

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

(3)      Series Excess Spread is the difference between (a) the sum of Finance
         Charge Collections, Yield Collections, Additional Funds and Investment
         Income for any Class of this Series (see Item 3(c)), and (b) the sum of
         (i) the monthly interest for this Series (see "Deposits into the SIFA
         on this Distribution Date" in Item 6), (ii) the monthly servicing fee
         for this Series (see Item 11(b)), (iii) the Investor Charged-Off Amount
         (see Item 7(b)), and (iv) the Credit Enhancement Fee (see Item 13(d)),
         in each case for this Distribution Date. [For purposes of determining
         Group Excess Spread, Series Excess Spread is the amount calculated as
         described above minus the amount of any payment by the Trust under the
         Trust's subordinated interest rate swap for this series.] The Series
         Excess Spread Percentage is equal to the Series Excess Spread,
         multiplied by twelve, divided by the Series Investor Interest for this
         Series at the beginning of the period.

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

                                     B-2-4
<PAGE>

                                   Exhibit C-1

                  Form of Master Servicer's Monthly Certificate

            Discover Card Master Trust I, Series 2003-4, Subseries 1

                                   CREDIT CARD

                            PASS-THROUGH CERTIFICATES

                                   ----------

The undersigned, a duly authorized representative of Discover Bank, formerly
Greenwood Trust Company, as Master Servicer pursuant to the Pooling and
Servicing Agreement dated as of October 1, 1993, as amended (the "Pooling and
Servicing Agreement"), and the Series Supplement, dated as of December 30, 2003
(the "Series Supplement") by and between Discover Bank and U.S. Bank National
Association as Trustee, does hereby certify as follows with respect to the
Series Supplement for the Discover Card Master Trust I, Series 2003-4, Subseries
1 Certificates for the Distribution Date occurring on _______________:

<Table>
<S>                                                                               <C>
1.       Discover Bank is Master Servicer under the Pooling and
         Servicing Agreement.

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

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

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

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

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

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

7.       The sum of all amounts payable to the Class A
         Certificateholders on the current Distribution Date is equal
         to .................................................................     $_____
</Table>

                                     C-1-1
<PAGE>

<Table>
<S>                                                                               <C>
8.       The aggregate amount of Class B Principal Collections
         processed during [month] [year] is equal to ........................     $_____

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

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

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

11.      The amount of drawings under the Credit Enhancement required
         to be made and not immediately reimbursed on the related
         Drawing Date pursuant to the Series Supplement:

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

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

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

12.      The sum of all amounts payable to the Class B
         Certificateholders on the current Distribution Date is equal
         to .................................................................     $_____

13.      Attached hereto is a true copy of the statement required to be
         delivered by the Master Servicer on the date of this
         Certificate to the Trustee pursuant to the section entitled
         Master Servicer's Monthly Certificate of the Series
         Supplement.
</Table>

                                     C-1-2
<PAGE>

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

                                             DISCOVER BANK,
                                               as Master Servicer

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

                                     C-1-3
<PAGE>

                                   Exhibit C-2

                  Form of Master Servicer's Monthly Certificate

            Discover Card Master Trust I, Series 2003-4, Subseries 2

                                   CREDIT CARD

                            PASS-THROUGH CERTIFICATES

                                   ----------

The undersigned, a duly authorized representative of Discover Bank, formerly
Greenwood Trust Company, as Master Servicer pursuant to the Pooling and
Servicing Agreement dated as of October 1, 1993, as amended (the "Pooling and
Servicing Agreement"), and the Series Supplement, dated as of December 30, 2003
(the "Series Supplement") by and between Discover Bank and U.S. Bank National
Association as Trustee, does hereby certify as follows with respect to the
Series Supplement for the Discover Card Master Trust I, Series 2003-4, Subseries
2 Certificates for the Distribution Date occurring on _______________:

<Table>
<S>                                                                               <C>
1.       Discover Bank is Master Servicer under the Pooling and
         Servicing Agreement.

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

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

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

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

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

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

7.       The sum of all amounts payable to the Class A
         Certificateholders on the current Distribution Date is equal
         to .................................................................     $_____
</Table>

                                     C-2-1
<PAGE>

<Table>
<S>                                                                               <C>
8.       The aggregate amount of Class B Principal Collections
         processed during [month] [year] is equal to ........................     $_____

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

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

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

11.      The amount of drawings under the Credit Enhancement required
         to be made and not immediately reimbursed on the related
         Drawing Date pursuant to the Series Supplement:

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

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

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

12.      The sum of all amounts payable to the Class B
         Certificateholders on the current Distribution Date is equal
         to .................................................................     $_____

13.      Attached hereto is a true copy of the statement required to be
         delivered by the Master Servicer on the date of this
         Certificate to the Trustee pursuant to the section entitled
         Master Servicer's Monthly Certificate of the Series
         Supplement.
</Table>

                                     C-2-2
<PAGE>

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

                                             DISCOVER BANK,
                                               as Master Servicer

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

                                     C-2-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}]]