Document:

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                                                                     EXHIBIT 4.2

                AMENDED AND RESTATED CREDIT ENHANCEMENT AGREEMENT

                                      AMONG

                         U.S. BANK NATIONAL ASSOCIATION

                                   AS TRUSTEE,

                                  DISCOVER BANK

                     AS MASTER SERVICER, SERVICER AND SELLER

                                       AND

                   DISCOVER RECEIVABLES FINANCING CORPORATION

                         AS CREDIT ENHANCEMENT PROVIDER

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

                           DATED AS OF MARCH 17, 2003

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

                          DISCOVER CARD MASTER TRUST I

                                  SERIES 2003-2

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                                TABLE OF CONTENTS
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SECTION 1.    Defined Terms...............................................................................    3

SECTION 2.    Loan........................................................................................    4

SECTION 3.    Calculation of Amount of Interest Payable on the Loan.......................................    5

SECTION 4.    Payment of Interest on the Loan.............................................................    5

SECTION 5.    Repayment of Principal of the Loan..........................................................    5

SECTION 6.    Payments to the Holder of the Seller Certificate and the Master Servicer....................    6

SECTION 7.    Deposits to and Withdrawals from the Credit Enhancement Account.............................    7

SECTION 8.    Certain Additional Loans....................................................................    7

SECTION 9.    Limited Obligation; Waiver of Setoff; Obligations Absolute..................................    8

SECTION 10.   Investments and Information.................................................................    9

SECTION 11.   Servicing Transfer..........................................................................    9

SECTION 12.   Representations and Warranties..............................................................    9

SECTION 13.   Covenants...................................................................................   10

SECTION 14.   Governing Law...............................................................................   11

SECTION 15.   Termination.................................................................................   11

SECTION 16.   Notices.....................................................................................   11

SECTION 17.   Bankruptcy..................................................................................   12

SECTION 18.   Limitation of Remedies......................................................................   12

SECTION 19.   No Petition.................................................................................   12

SECTION 20.   Amendments..................................................................................   13

SECTION 21.   Successors and Assigns; Replacement of Credit Enhancement Provider..........................   13

SECTION 22.   Participation...............................................................................   13
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                  AMENDED AND RESTATED CREDIT ENHANCEMENT AGREEMENT, dated as of
March 17, 2003, among U.S. BANK NATIONAL ASSOCIATION (formerly First Bank
National Association, successor trustee to Bank of America Illinois, formerly
Continental Bank, National Association) as trustee (together with its successors
and assigns as trustee, the "Trustee") for Discover Card Master Trust I (the
"Trust"), DISCOVER BANK (formerly Greenwood Trust Company) ("Discover Bank") as
Master Servicer, Servicer and Seller with respect to the Trust and DISCOVER
RECEIVABLES FINANCING CORPORATION as cash collateral depositor (the "Credit
Enhancement Provider").

                              W I T N E S S E T H

                  WHEREAS, Discover Bank as Master Servicer, Servicer and Seller
and the Trustee have entered into a Pooling and Servicing Agreement, dated as of
October 1, 1993 (as the same may from time to time be amended, modified or
otherwise supplemented, the "Pooling and Servicing Agreement"), and that certain
Series Supplement, dated as of February 18, 2003 and amended as of the date
hereof (as the same may from time to time be further amended, modified or
otherwise supplemented, the "Series Supplement");

                  WHEREAS, the Trust, pursuant to the Pooling and Servicing
Agreement and the Series Supplement, has issued $526,316,000 in aggregate
principal amount of Investor Certificates of Discover Card Master Trust I,
Series 2003-2 (the "Series") and is issuing an additional $526,316,000 in
aggregate principal amount of Investor Certificates of the Series, which, upon
issuance, will entitle the holders thereof to interest during the Revolving
Period, the Accumulation Period, and the Amortization Period, if any, and
principal on the Class A Expected Final Payment Date, the Class B Expected Final
Payment Date and during the Amortization Period, if any;

                  WHEREAS, the principal and interest payments on the Investor
Certificates are to be funded by Principal Collections and Finance Charge
Collections received by the Trust on the Receivables;

                  WHEREAS, the Trustee, Discover Bank and the Credit Enhancement
Provider entered into a Credit Enhancement Agreement dated February 18, 2003
pursuant to which the Credit Enhancement Provider made an initial term loan of
$39,473,700 to the Trust, for the benefit of the Investor Certificateholders of
the Series; and

                  WHEREAS, it is a condition to the issuance of the additional
$526,316,000 of Investor Certificates on the date hereof, that the Credit
Enhancement Provider increase its term loan to the Trust, for the benefit of the
Investor Certificateholders of the Series, from $39,473,700 to $78,947,400 (7.5%
of the Series Initial Investor Interest), for deposit in the Credit Enhancement
Account to provide additional funds to make payments on the Investor
Certificates under certain circumstances.

                  NOW, THEREFORE, in consideration of the mutual covenants
herein contained, and other good and valuable consideration, the receipt and
adequacy of which are hereby expressly acknowledged, the parties hereto agree as
follows:

                  SECTION 1.  DEFINED TERMS.

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                  (a)      The capitalized terms used herein and not otherwise
defined herein shall have the meanings assigned to them in the Pooling and
Servicing Agreement or the Series Supplement, as applicable.

                  (b)      The following terms have the definitions set forth
below:

                  "Interest Period" means (i) with respect to the initial
Distribution Date, the period commencing on the Series Closing Date and ending
on the day immediately preceding the initial Distribution Date and (ii) with
respect to each subsequent Distribution Date, the period commencing on the
preceding Distribution Date and ending on the day immediately preceding such
Distribution Date.

                  "Lender Rate" means, with respect to each Interest Period, the
prime commercial lending rate per annum established by the Trustee, as in effect
on each day in the Interest Period.

                  "LIBOR-Based Rate" means, with respect to each Interest
Period, the per annum interest rate equal to the London Interbank Offered Rate
which appears on Telerate Page 3750 at approximately 11:00 a.m. (London time)
two LIBOR Business Days prior to the first day of such Interest Period for
deposits of United States dollars for a period of time comparable to the
Interest Period, and in an amount comparable to the principal amount of the
Loan, plus 1.10%.

                  "Portfolio Yield" means, 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.

                  "Provider Amount" means, with respect to each Distribution
Date, the lesser of (i) the unpaid principal amount of the Loan (including any
amounts loaned by the Credit Enhancement Provider pursuant to Section 8 hereof)
and (ii) the amount on deposit in the Credit Enhancement Account, in each case
before giving effect to any payments, allocations or distributions on such
Distribution Date.

                  "Series Interest Payment Amount" means, for any Distribution
Date, an amount equal to the amount of interest payable on the Loan on such
Distribution Date, including any accrued but unpaid interest with respect to
previous Interest Periods and interest thereon, less the amount paid to the
Credit Enhancement Provider on such Distribution Date pursuant to Section 4(a)
hereof. The Series Interest Payment Amount shall be the amount of interest
payable pursuant to this Agreement for purposes of calculating the "Credit
Enhancement Fee" for the purpose of, and as such term is defined in, the Series
Supplement and such amount shall be paid in accordance with the provisions of
the Series Supplement.

                  SECTION 2.  LOAN. The Credit Enhancement Provider hereby makes
a term loan to the Trust, for the benefit of the Investor Certificateholders of
the Series on the Series Closing Date in an amount equal to $39,473,700, and a
term loan to the Trust, for the benefit of the Investor Certificateholders of
the Series on March 17, 2003 in an amount equal to

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$39,473,700, receipt of which is hereby acknowledged by the Trustee (such
aggregate loans of $78,947,400, the "Loan"). The amount of such Loan shall be
increased by the amount of any additional loan made by the Credit Enhancement
Provider pursuant to Section 8 hereof.

                  SECTION 3.  CALCULATION OF AMOUNT OF INTEREST PAYABLE ON THE
LOAN.

                  (a)      The Loan shall bear interest for each day during each
Interest Period with respect thereto at a rate per annum determined for such day
as follows. To the extent the unpaid portion of the principal of the Loan during
such Interest Period equals or is less than the amount on deposit in the Credit
Enhancement Account, the rate for such Interest Period on such principal portion
shall be the LIBOR-Based Rate. To the extent any portion of the unpaid principal
of the Loan exceeds such amount on deposit, the rate for such Interest Period on
such principal portion shall be the Lender Rate.

                  (b)      Interest shall be payable monthly in arrears on each
Distribution Date. Interest on the Loan shall be calculated on the basis of the
actual number of days elapsed during the applicable Interest Period divided by
(i) 360, to the extent the LIBOR-Based Rate is applicable, or (ii) 365 or 366,
as the case may be, to the extent the Lender Rate is applicable. The Trustee
shall, as soon as practicable, notify the Seller, the Master Servicer and the
Credit Enhancement Provider of each determination of the Lender Rate and of the
LIBOR-Based Rate. Each determination thereof by the Trustee pursuant to the
provisions of this Agreement shall be conclusive and binding on the Seller, the
Master Servicer and the Credit Enhancement Provider, in the absence of manifest
error.

                  (c)      If any portion of interest due and payable on a
Distribution Date is not paid on such Distribution Date, the unpaid portion of
such interest shall be due and payable on the next succeeding Distribution Date.
Any interest that is not paid on the due date thereof shall accrue interest from
the Distribution Date on which such interest was due and payable to the date
such interest is actually paid at a rate per annum equal to the Lender Rate.

                  SECTION 4.  PAYMENT OF INTEREST ON THE LOAN. On each
Distribution Date, the Trustee as administrator of the Credit Enhancement shall
pay or cause to be paid to the Credit Enhancement Provider the amount of accrued
but unpaid interest on the Loan from the funds and in the order of priority set
forth below; provided, however, that such payments shall not exceed the amount
of accrued but unpaid interest on the Loan and that such payments will be made
only to the extent such funds are available:

                  (a)      interest and earnings (net of losses and investment
expenses) accrued since the preceding Distribution Date on the Provider Amount;
and

                  (b)      the Series Interest Payment Amount, to the extent
such amount has been paid to the Trustee as administrator of the Credit
Enhancement pursuant to the Series Supplement.

                  SECTION 5.  REPAYMENT OF PRINCIPAL OF THE LOAN. The principal
amount of the Loan shall be due and payable on the Series Termination Date. The
Trust shall repay the unpaid principal balance of the Loan in full on or before
the Series

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Termination Date in accordance with the provisions of this Agreement; provided,
however, that the unpaid principal amount of the Loan shall only be paid from
the funds described below, and only to the extent such funds are available.

                  (a)      If, as of 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 exceeds the Total Maximum Credit Enhancement Amount, (i) the amount of
such excess, up to the amount, if any, by which the amount on deposit in the
Credit Enhancement Account exceeds the unpaid principal amount of the Loan,
shall be withdrawn from the Credit Enhancement Account and paid to Discover Bank
on behalf of the Holder of the Seller Certificate and (ii) the remaining amount
of such excess, if any, after payment of any amounts to be paid to Discover Bank
on behalf of the Holder of the Seller Certificate pursuant to clause (i) of this
Section 5(a), shall be withdrawn from the Credit Enhancement Account and paid to
the Credit Enhancement Provider for application toward the unpaid principal
amount of the Loan.

                  (b)      On the earlier to occur of (i) the Series Termination
Date and (ii) the day on which the Class Invested Amount with respect to each
Class of the Series is paid in full, and after payment of any amounts to be paid
on such day from the Credit Enhancement Account to or for the benefit of the
Investor Certificateholders of the Series, all amounts remaining on deposit in
the Credit Enhancement Account, up to the amount of the unpaid principal amount
of the Loan, shall be withdrawn from such account and paid to the Credit
Enhancement Provider for application toward the unpaid principal amount of the
Loan.

                  SECTION 6.  PAYMENTS TO THE HOLDER OF THE SELLER CERTIFICATE
AND THE MASTER SERVICER.

                  (a)      On each Distribution Date, the Trustee as
administrator of the Credit Enhancement shall pay or cause to be paid to
Discover Bank on behalf of the Holder of the Seller Certificate (i) the interest
and earnings (net of losses and investment expenses) accrued since the preceding
Distribution Date on an amount equal to the positive difference, if any, between
(x) the amount on deposit in the Credit Enhancement Account and (y) the Provider
Amount and (ii) the positive difference, if any, between (x) the amount of
interest and earnings (net of losses and investment expenses) accrued since the
preceding Distribution Date on the Provider Amount and (y) the amount paid to
the Credit Enhancement Provider on such Distribution Date pursuant to Section
4(a).

                  (b)      On each Distribution Date, an amount equal to the
amount, if any, paid to the Trustee as administrator of the Credit Enhancement
pursuant to Section 9(b)(27) of the Series Supplement, shall be paid to Discover
Bank on behalf of the Holder of the Seller Certificate.

                  (c)      On the earlier to occur of (i) the Series Termination
Date and (ii) the day on which the Class Invested Amount with respect to each
Class of the Series is paid in full, and after payment of any amounts to be paid
on such day from the Credit Enhancement Account to or for the benefit of the
Investor Certificateholders of the Series, any amounts remaining on deposit in
the Credit Enhancement Account that are not paid to the Credit Enhancement
Provider

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pursuant to Section 5(b) hereof shall be withdrawn from such account and paid to
Discover Bank on behalf of the Holder of the Seller Certificate.

                  SECTION 7.  DEPOSITS TO AND WITHDRAWALS FROM THE CREDIT
ENHANCEMENT ACCOUNT.

                  (a)      The proceeds of the Loan made by the Credit
Enhancement Provider to the Trust pursuant to Section 2 hereof, for the benefit
of the Investor Certificateholders of the Series, on the Series Closing Date and
the proceeds of any additional loan made by the Credit Enhancement Provider
pursuant to Section 8 hereof, shall be deposited into the Credit Enhancement
Account. In addition, any amounts paid to the Trustee as administrator of the
Credit Enhancement on any Distribution Date with respect to the Total Available
Credit Enhancement Amount or the Available Class B Credit Enhancement Amount
pursuant to the terms of the Series Supplement also shall be deposited into the
Credit Enhancement Account upon receipt of such funds by the Trustee.

                  (b)      Any withdrawals from the Credit Enhancement Account
for the benefit of the Investor Certificateholders pursuant to Section 9 of the
Series Supplement may be made by the Master Servicer or by the Trustee as
administrator of the Credit Enhancement and shall be deemed to be made first
from amounts on deposit in the Credit Enhancement Account as a result of
payments of Series Excess Servicing and other amounts to the Trustee as
administrator of the Credit Enhancement to fund the Total Available Credit
Enhancement Amount, including any Series Excess Servicing or other such amounts
on deposit in the Credit Enhancement Account as a result of an Alternative
Credit Support Election having been made or as a result of the occurrence of a
Supplemental Credit Enhancement Event, and only after such amounts are exhausted
shall any such withdrawals be deemed to be made from amounts on deposit in the
Credit Enhancement Account that are attributable to the Loan.

                  (c)      On or before any Distribution Date on which Discover
Bank is the Master Servicer, all payments made pursuant to this Agreement or the
Series Supplement between the Master Servicer or the Holder of the Seller
Certificate and the Credit Enhancement Account, may be aggregated for such
Distribution Date such that Discover Bank, acting as Master Servicer and as
agent of the Holder of the Seller Certificate, may make only one payment to the
Credit Enhancement Account in satisfaction of all payments of the Master
Servicer and the Holder of the Seller Certificate pursuant to this Agreement or
the Series Supplement, to the extent that all payment obligations of the Master
Servicer and the Holder of the Seller Certificate to the Credit Enhancement
Account on such Distribution Date exceed all payment obligations of the Credit
Enhancement Account to the Master Servicer and the Holder of the Seller
Certificate on such Distribution Date.

                  SECTION 8.  CERTAIN ADDITIONAL LOANS.

                  (a)      Alternative Credit Support Election. In the event
that an Alternative Credit Support Election is made pursuant to the provisions
of the Series Supplement, Discover Bank on behalf of the Holder of the Seller
Certificate may cause the Additional Credit Support Amount to be funded by
Series Excess Servicing and other amounts paid to the Trustee as administrator
of the Credit Enhancement to fund the Available Class B Credit Enhancement

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Amount, pursuant to Section 9 of the Series Supplement, or may request that the
Credit Enhancement Provider make an additional loan in the amount of the
Additional Credit Support Amount. If Discover Bank on behalf of the Holder of
the Seller Certificate makes such request, and if the Credit Enhancement
Provider elects to make such loan, the amount of such loan shall be added to the
unpaid principal amount of the Loan. In the event that the Alternative Credit
Support Election does not become effective, the Additional Credit Support Amount
(or, if the entire amount of the Additional Credit Support Amount is not then on
deposit in the Credit Enhancement Account, the portion of the Additional Credit
Support Amount that is then on deposit) shall be withdrawn from the Credit
Enhancement Account and repaid to Discover Bank on behalf of the Holder of the
Seller Certificate (or, if such amount was loaned by the Credit Enhancement
Provider, returned to the Credit Enhancement Provider).

                  (b)      Supplemental Credit Enhancement Event. In the event
that a Supplemental Credit Enhancement Event occurs, Discover Bank as Servicer
may cause the Supplemental Credit Enhancement Amount to be funded by Series
Excess Servicing and other amounts paid to the Trustee as administrator of the
Credit Enhancement to fund the Available Class B Credit Enhancement Amount, or
may request that the Credit Enhancement Provider make an additional loan in the
amount of the Supplemental Credit Enhancement Amount. If Discover Bank as
Servicer makes such a request, and if the Credit Enhancement Provider elects to
make such loan, the amount of such loan shall be equal to the Supplemental
Credit Enhancement Amount and shall be added to the unpaid principal amount of
the Loan.

                  (c)      Notice. The Credit Enhancement Provider shall give
prior written notice to Moody's of the making of any loan by the Credit
Enhancement Provider other than the additional loans described in this Section
8.

                  (d)      At the time of any additional loan described in this
Section 8, Discover Bank as Servicer and the Credit Enhancement Provider may
agree in writing that the Supplemental Credit Enhancement Amount or the
Additional Credit Support Amount, as applicable, shall bear interest at a
different LIBOR-Based Rate, which rate shall reflect prevailing market
conditions and the expected duration of such additional loan.

                  SECTION 9.  LIMITED OBLIGATION; WAIVER OF SETOFF; OBLIGATIONS
ABSOLUTE.

                  (a)      Notwithstanding any provision in any other section of
this Agreement to the contrary, the obligation to repay the Loan, together with
interest thereon, shall be without recourse to any Seller, the Master Servicer,
any Servicer, the Trustee, the Trust, any Certificateholder, or any affiliate,
officer, director, employee or person acting on behalf of any of them, and the
obligation to pay such amounts shall be limited solely to the application of
funds pursuant to this Agreement, in the manner and to the extent such funds are
available, except for the direct recourse indemnification obligation of each
successor Master Servicer pursuant to Section 11 hereof. The Credit Enhancement
Provider agrees that its interest in funds on deposit in the Credit Enhancement
Account is subordinated to the interests of the Investor Certificateholders of
the Series, as provided in this Agreement and in the Series Supplement. The
Credit Enhancement Provider further agrees that it shall have no right of setoff
or lender's

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lien against any Seller, the Master Servicer, any Servicer, the Trustee, the
Trust, or any Certificateholder.

                  (b)      The obligations of the Seller, the Trustee, the
Credit Enhancement Provider and the Master Servicer under this Agreement shall
be absolute, unconditional and irrevocable, and shall be performed strictly in
accordance with the terms of this Agreement.

                  SECTION 10. INVESTMENTS AND INFORMATION.

                  (a)      The Trustee shall from time to time during the term
of this Agreement invest all amounts on deposit in the Credit Enhancement
Account as the Master Servicer shall direct, which investments shall at all
times be made in compliance with the terms of the Pooling and Servicing
Agreement and the Series Supplement.

                  (b)      The Master Servicer shall provide the Credit
Enhancement Provider with such background information and data with respect to
the Credit Enhancement Account as the Credit Enhancement Provider may reasonably
request.

                  SECTION 11. SERVICING TRANSFER. In the event that a successor
Master Servicer is appointed pursuant to the Pooling and Servicing Agreement,
from and after the effective date of such transfer of servicing, the successor
Master Servicer appointed pursuant to the Pooling and Servicing Agreement, and
not the former Master Servicer, shall (a) be responsible for the performance of
all servicing functions to be performed from and after such date, (b) agree to
be bound by the terms, covenants and conditions contained herein applicable to
the Master Servicer and be subject to the duties and obligations of the Master
Servicer hereunder, and (c) agree to indemnify and hold harmless the Credit
Enhancement Provider from and against any and all claims, damages, losses,
liabilities, costs or expenses whatsoever which the Credit Enhancement Provider
may incur (or which may be claimed against the Credit Enhancement Provider) by
reason of the gross negligence or willful misconduct of the successor Master
Servicer in exercising its powers and carrying out its obligations under the
Pooling and Servicing Agreement and the Series Supplement. Such transfer of
servicing shall not affect any rights or obligations of the former Master
Servicer under this Agreement that arose prior to the effective date of the
transfer of servicing, except that such former Master Servicer shall have no
obligation to indemnify the Credit Enhancement Provider as a result of any act
or failure to act of any successor Master Servicer in the performance of the
servicing functions.

                  SECTION 12. REPRESENTATIONS AND WARRANTIES.

                  (a)      The Credit Enhancement Provider hereby represents and
warrants to the Master Servicer and the Trustee that:

                  (i)      The Credit Enhancement Provider has been duly
incorporated and is validly existing as a corporation in good standing under the
laws of the State of Delaware, and has the corporate power and authority to
execute, deliver and perform its obligations under this Agreement.

                  (ii)     This Agreement has been duly authorized, executed and
delivered on the part of the Credit Enhancement Provider.

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                  (iii)    When executed and delivered, this Agreement will
constitute a valid and binding agreement of the Credit Enhancement Provider
enforceable against the Credit Enhancement Provider in accordance with its
terms, except (A) as the same may be limited by insolvency, bankruptcy or
reorganization or other laws relating to or affecting the enforcement of
creditors' rights and (B) as the same may be limited by general equity
principles (whether considered in a proceeding at law or in equity) and by the
discretion of the court before which any proceeding therefor may be brought.

                  (b)      The Master Servicer hereby represents and warrants to
the Credit Enhancement Provider and the Trustee that:

                  (i)      The Master Servicer has been duly incorporated and is
validly existing as a banking corporation in good standing under the laws of the
State of Delaware, and has the corporate power and authority to execute, deliver
and perform its obligations under the Pooling and Servicing Agreement, the
Series Supplement and this Agreement.

                  (ii)     This Agreement, the Pooling and Servicing Agreement
and the Series Supplement have been duly authorized, executed and delivered on
the part of the Master Servicer.

                  (iii)    When executed and delivered, each of this Agreement,
the Pooling and Servicing Agreement and the Series Supplement will constitute a
valid and binding agreement of the Master Servicer enforceable against the
Master Servicer in accordance with its terms, except (A) as the same may be
limited by insolvency, bankruptcy, receivership or reorganization or other laws
relating to or affecting the enforcement of creditors' rights and (B) as the
same may be limited by general equity principles (whether considered in a
proceeding at law or in equity) and by the discretion of the court before which
any proceeding therefor may be brought.

                  (c)      The Trustee hereby represents and warrants to the
Credit Enhancement Provider and the Master Servicer that:

                  (i)      The Trustee is organized, existing and in good
standing under the laws of the United States of America.

                  (ii)     The Trustee has full power, authority and right to
execute, deliver and perform this Agreement, the Pooling and Servicing Agreement
and the Series Supplement, and has taken all necessary action to authorize the
execution, delivery and performance by it of this Agreement, the Pooling and
Servicing Agreement and the Series Supplement.

                  (iii)    Each of this Agreement, the Pooling and Servicing
Agreement and the Series Supplement have been duly executed and delivered by the
Trustee.

                  SECTION 13. COVENANTS. Discover Bank, as Master Servicer and
on behalf of the Holder of the Seller Certificate, covenants and agrees that, so
long as this Agreement shall remain in effect or any monetary obligation arising
hereunder or under the Series Supplement shall remain unpaid, it will change the
terms and provisions of a Credit Agreement with respect to a Discover Bank
Discover Card Account or any other Account with respect to which it is the
Servicer (including, without limitation, the calculation of the amount, or

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the timing, of charge-offs) only if it does not believe, after a good faith
assessment of the expected effects of such change, that such change will result
in a reduction of the Portfolio Yield, for any Due Period beginning prior to the
termination of the Series, to less than the Base Rate unless such change (i) is
required by any Requirements of Law or (ii) is deemed necessary by Discover Bank
in its sole reasonable judgment to maintain its credit card business on a
competitive basis. For purposes of this Section 13, "Base Rate" shall mean (i)
the weighted average of the Certificate Rates for each Class of each Series then
outstanding plus (ii) 1% per annum. For purposes of the immediately preceding
sentence, the Certificate Rate for each Class that does not have a fixed
Certificate Rate shall be the actual Certificate Rate for such Class for the
Interest Accrual Period commencing in the immediately preceding Due Period. In
the event that any Additional Seller shall transfer Receivables in Additional
Accounts to the Trust, Discover Bank on behalf of the Holder of the Seller
Certificate shall cause the Servicer with respect to such Additional Accounts to
make the covenant set forth above with respect to such Additional Accounts.

                  SECTION 14. GOVERNING LAW. THIS AGREEMENT 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 15. TERMINATION. This Agreement shall terminate on
the date on which the Series terminates in accordance with the provisions of the
Pooling and Servicing Agreement and the Series Supplement; provided, however,
that this Agreement may be terminated by the Master Servicer at any time,
without penalty, provided that such termination does not cause the ratings of
the Investor Certificates to be lowered or withdrawn by either of the Rating
Agencies; and provided, further, that all amounts owing to the Credit
Enhancement Provider hereunder with respect to principal and interest on the
Loan shall have been paid in full. Notwithstanding the foregoing, the Credit
Enhancement Provider shall have no rights under this Agreement, and shall not be
entitled to any payments hereunder, if and for so long as there is no Loan
outstanding hereunder and no accrued but unpaid interest.

                  SECTION 16. NOTICES. Unless specifically indicated otherwise
herein, all notices and other communications provided for hereunder shall be in
writing and, if to the Credit Enhancement Provider, addressed to:

                   Discover Receivables Financing Corporation
                                  12 Read's Way
                           New Castle, Delaware 19720
                  Attn: Executive Vice President and Secretary
                              Phone: (302) 323-7167
                               Fax: (302) 323-7393

or, if to the Seller or the Master Servicer, addressed to:

                                 Discover Bank
                                 12 Read's Way

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                           New Castle, Delaware 19720
                            Attn: Michael F. Rickert
                              Phone: (302) 323-7434
                               Fax: (302) 323-7393

or, if to the Trustee, addressed to:

                         U.S. Bank National Association
                                Wrigley Building
                      400 North Michigan Avenue, 2nd Floor
                                   IL WB0410
                          Chicago, Illinois 60611-4181
                             Attn: Patricia M. Child
                              Phone: (312) 836-6713
                               Fax: (312) 836-6701

or as to any party at such other address as shall be designated by such party in
a written notice to the other parties.

                  Any notice or other communication shall be sufficiently given
and shall be deemed given when delivered to the addressee in writing or when
transmitted by telecopier, receipt of which by the addressee is confirmed by
telephone.

                  SECTION 17. BANKRUPTCY. To the extent that the Trustee, the
Master Servicer or Discover Bank on behalf of the Holder of the Seller
Certificate makes a payment to the Credit Enhancement Provider or the Credit
Enhancement Provider receives any payment or proceeds with respect to the Loan,
which payment or proceeds or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid to
a trustee, receiver or any other party under any state or federal insolvency or
bankruptcy law then, to the extent such payment or proceeds are set aside, the
amount or part thereof intended to be satisfied shall be revived and continue in
full force and effect, as if such payment or proceeds had not been received by
the Credit Enhancement Provider.

                  SECTION 18. LIMITATION OF REMEDIES. The Credit Enhancement
Provider shall not have the right to cause the Loan or any portion thereof to
become due and payable prior to the due date for the Loan as set forth herein.

                  SECTION 19. NO PETITION.

                  (a)      The Credit Enhancement Provider, by entering into
this Agreement, hereby covenants and agrees that it will not at any time
institute, join in or otherwise cause the institution of, against any Seller,
the Master Servicer or the Trust, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any United
States federal or state or similar law prior to a year and a day after the final
payment of all investor certificates issued by any trust with respect to which
Discover Bank is the seller.

                  (b)      Each of Discover Bank and the Trustee, by entering
into this Agreement, hereby covenants and agrees that it will not at any time
institute, join in or otherwise cause the

                                       12

<PAGE>

institution of, against the Credit Enhancement Provider, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state or similar law prior to a
year and a day after the final payment of all investor certificates issued by
any trust with respect to which Discover Bank is the seller.

                  SECTION 20. AMENDMENTS. This Agreement shall not be amended
or modified without the written consent of each of the parties hereto. No
amendment hereto shall become effective without prior confirmation from the
Rating Agencies that such amendment will not cause a lowering or withdrawal of
the then current ratings of the Investor Certificates of the Series. The Master
Servicer shall provide a copy of any amendment hereto to the Rating Agencies.

                  SECTION 21. SUCCESSORS AND ASSIGNS; REPLACEMENT OF CREDIT
ENHANCEMENT PROVIDER.

                  (a)      This Agreement shall be binding upon, and inure to
the benefit of, the Trustee, the Sellers, the Servicers, the Master Servicer and
the Credit Enhancement Provider and their respective successors and permitted
assigns.

                  (b)      No Seller shall assign its interests hereunder and
under the Pooling and Servicing Agreement or the Series Supplement, or any
portion of such interests, except by an assignment that transfers each such
interest to the same assignee.

                  (c)      In the event that a successor trustee is appointed
pursuant to the provisions of the Pooling and Servicing Agreement to replace the
then current Trustee, such successor trustee, from and after its appointment,
shall be the Trustee for purposes of this Agreement and shall assume all of the
rights and obligations of the Trustee hereunder.

                  (d)      The Credit Enhancement Provider may not assign any of
its rights or obligations hereunder without the prior written consent of
Discover Bank on behalf of the Holder of the Seller Certificate and without
prior written confirmation from the Rating Agencies that such assignment will
not result in the lowering or withdrawal of the rating of any Class of any
Series then outstanding.

                  SECTION 22. PARTICIPATION. Any successor Credit Enhancement
Provider that is not a special-purpose corporation that is an affiliate of
Discover Bank may, without the consent of the Trustee, the Trust, any Seller,
the Master Servicer, any Servicer or any Certificateholder of the Series, sell
participations to one or more banks or other entities in all or a portion of its
rights under this Agreement (including all or a portion of the Loan); provided,
however, that (a) the Credit Enhancement Provider's obligations under this
Agreement shall remain unchanged, (b) the Credit Enhancement Provider shall
remain solely responsible to the other parties hereto for the performance of
such obligations, (c) the Trustee, the Trust, the Sellers and the Master
Servicer shall continue to deal solely and directly with the Credit Enhancement
Provider in connection with the Credit Enhancement Provider's rights and
obligations under this Agreement, and (d) the Credit Enhancement Provider shall
retain the sole right to enforce the obligations of the Trustee, the Trust, the
Sellers or the Master Servicer under this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement.

                                       13

<PAGE>

                  IN WITNESS WHEREOF, the parties hereby have caused this
Agreement to be duly executed and delivered by the undersigned thereunto duly
authorized as of the day and year first above written.

                                            DISCOVER RECEIVABLES FINANCING
                                              CORPORATION,
                                            as Credit Enhancement Provider

                                            By: /s/ JAI SOOKLAL
                                               ---------------------------------
                                                Name: Jai Sooklal
                                                Title: Vice President

                                            DISCOVER BANK,
                                            as Master Servicer, Servicer and
                                            Seller

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

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Trustee

                                            By: /s/ MELISSA A. ROSAL
                                               ---------------------------------
                                                Name: Melissa A. Rosal
                                                Title: Vice President

                                      S-1<PAGE>
                                                                   EXHIBIT 10(r)
                      AGREEMENT, WAIVER AND GENERAL RELEASE

         This Agreement, Waiver and General Release ("Agreement") is made and
entered into January 20 , 2003 , by and between J. Michael Hemp (hereinafter
referred to as "Mr. Hemp"), and Lincoln Financial Advisors Corporation ("LFA")
on behalf of itself and Lincoln National Corporation ("LNC"), their affiliates
and subsidiaries, and each of their directors, officers, representatives,
agents, attorneys, employees, successors, and assigns and any other person
acting through, by, under or in concert with any of them (hereinafter
collectively referred to as "LFG"), and shall become effective eight (8) days
after Mr. Hemp executes this Agreement, unless revoked by Mr. Hemp pursuant to
paragraph 20.

         In consideration of the premises and mutual promises and agreements
contained in this Agreement, the parties agree as follows:

1.       Mr. Hemp has been employed with LFG since May 10, 1972. On December 8 ,
         2002, Mr. Hemp tendered his resignation as President of LFA and LFA,
         Limited Liability Company as set out in Exhibit A, however, he will
         continue, unless asked to resign earlier by the Chief Executive Officer
         of LNC, as an officer of various other companies of LFG and member of
         the Senior Management Committee of the Company until May 1, 2003
         ("transition date"), when he will resign from all officer and/or
         director positions of LFG as set out in Exhibit B. LFG and Mr. Hemp
         have agreed that Mr. Hemp's employment will be continued until May 1,
         2005 ("termination date") to facilitate a transition in the leadership
         of LFA, to permit an effective transition for Mr. Hemp to a field
         financial planning role, and to reduce any hardship that an immediate
         termination of employment may cause Mr. Hemp.

2.       Mr. Hemp and LFG have carefully explored this situation and in the
         spirit of compromise, have agreed to enter into this Agreement.

3.       Mr. Hemp will continue to be employed by LFA through the termination
         date, and compensated at the salary rate in effect on the transition
         date. Mr. Hemp will no longer be a member of the LNC Senior Management
         Committee or Senior Contributor Group after the transition date.

4.       Mr. Hemp will continue to accrue pension benefits under the LNC
         Employees' Retirement Plan, the LNC Employees' Supplemental Pension
         Benefit Plan and the LNC Executives' Excess Compensation Pension
         Benefit Plan ("Retirement Plans") through the termination date.

<PAGE>

5.       Mr. Hemp will continue to receive medical and dental coverage for
         himself and any eligible dependents under the Lincoln National
         Corporation Employee's Medical Reimbursement Plan, and the Lincoln
         National Corporation Employees' Dental Reimbursement Plan through the
         termination date. Upon Mr. Hemp's retirement, he will be entitled to
         all benefits due him under the terms of the LNC Group Health and Dental
         Plan for Retirees.

6.       Mr. Hemp may continue to participate in the LNC Employees' Savings and
         Profit-Sharing Plan through the termination date. Upon his termination
         of employment, Mr. Hemp's account under the LNC Employees' Savings and
         Profit-Sharing Plan will be vested and he will receive a pro rata share
         of the 2005 employer match, payable in 2006.

7.       Mr. Hemp will be eligible for financial planning and tax preparation
         through the termination date.

8.       Coverage under the LNC Employees' Short Term Disability Plan and LNC
         Employees' Long Term Disability Plan will terminate as of Mr. Hemp's
         termination date.

9.       Mr. Hemp's participation in the LNC Executive Severance Plan will
         terminate on the transition date.

10.      Mr. Hemp is the grantee of eighty four thousand two hundred fifty
         (84,250) unvested LNC Stock Options granted under the Lincoln National
         Corporation Incentive Compensation Plan ("ICP"). Mr. Hemp is 55 years
         of age, with five (5) vesting years of service, thus for stock option
         purposes, Mr. Hemp will be considered a retiree. Mr. Hemp's unvested
         stock options will vest on the termination date and be exercisable,
         subject to applicable taxes and other withholdings required by law,
         before the earlier of (a) expiration of the Nonqualified Stock Option
         Agreement's ten (10) year term, or (b) the date that is five (5) years
         after the termination date, for option grants after May 7, 1996 (option
         grants before May 7, 1996 have varying, shorter time periods for
         exercise as set forth in the applicable Nonqualified Stock Option
         Agreement).

11.      Mr. Hemp is the Grantee of sixteen thousand nine hundred ninety- five
         (16,995) shares of restricted Common Stock awarded under the 1998-2000
         Long Term Incentive Plan ("LTIP") granted under the terms of the ICP.
         The restricted LNC shares awarded to Mr. Hemp under the LTIP will vest,
         subject to applicable taxes and other withholdings required by law, on
         January 1, 2004 in accordance with the terms of the restricted stock
         agreement, as long as Mr. Hemp continues employment though that date.

<PAGE>

12.      If the Compensation Committee of the LNC Board of Directors determines
         that the performance goals for the 2001 - 2003, 2002 - 2004, and 2003 -
         2005 cycles under the LTIP, established under the ICP, have been met,
         Mr. Hemp will receive a pro rata payment, determined through the
         transition date, less applicable taxes and other withholdings required
         by law, at the time such payments are made to other participants,
         generally.

13.      Mr. Hemp will be paid a pro rata share of his 2003 annual incentive
         award due under the LNC Executive Value Sharing Program ("EVSP"),
         established under the terms of the ICP, determined through the
         transition date, based upon his EVSP performance targets, less
         applicable taxes and other withholdings required by law, at such time
         incentives are paid to other LFG participants, generally. Mr. Hemp's
         participation in the EVSP will end on the transition date.

14.      LFG is currently analyzing various restructuring alternatives (which
         may include a termination) for the split dollar life insurance program
         as a result of recent legislation. Mr. Hemp will be given the same
         options that are made available to other LNC Senior Management
         Committee Members in any restructured split dollar program.

15.      Mr. Hemp's account under the Lincoln National Corporation Executive
         Deferred Compensation Plan for Employees ("Deferred Compensation Plan")
         will be vested and paid to Mr. Hemp in accordance with the terms of
         that plan and with the elections he has previously made under the
         Deferred Compensation Plan, after the termination date.

16.      Mr. Hemp will be eligible for benefits under the Salary Continuation
         Plan for Executives of Lincoln National Corporation and Affiliates
         ("ESC") determined in accordance with the terms of the ESC.

17.      This Agreement does not release any claims for benefits under any of
         LFG's pension, retirement, or welfare benefit plans, whether qualified
         or nonqualified, that Mr. Hemp may have.

18.      Mr. Hemp will be paid any accrued and unused managed time as of his
         transition date, subject to the maximum carryover limitations of LFG.
         Mr. Hemp will accrue no additional managed time during the period
         between the transition date and termination date.

19.      Mr. Hemp, for and in consideration of the above, waives any right to
         personal recovery and hereby irrevocably, unconditionally and generally
         releases, acquits, and forever discharges to the fullest extent
         permitted by law, LFG from all charges,

<PAGE>

         complaints, actions, causes of actions, suits, rights, grievances,
         costs, losses, debts, expenses, sums of money, accounts, covenants,
         contracts, agreements, claims, damages, liabilities, obligations, and
         demands of any nature whatsoever, known or unknown, in law or in equity
         ("Claim" or "Claims"), which against them Mr. Hemp at any time
         heretofore ever had, owned, or held or claimed to have had, owned, or
         held or which Mr. Hemp now has, owns, or hold, or claims to have, own,
         or hold, or which Mr. Hemp can, shall or may have, or which Mr. Hemp's
         heirs, executors, administrators, personal representatives, successors,
         or assigns hereinafter can, shall or may have, in any way connected
         with or relating to Mr. Hemp's employment and/or the termination of his
         employment with LFG.

20.      The paragraph above includes, but is not limited to, claims, disputes
         or causes of action or right to personal recovery under tort, contract,
         or any other state or federal laws, (including, but by no means limited
         to, claims arising out of or alleging breach of contract, wrongful
         termination, breach of implied employment, breach of good faith and
         fair dealing, impairment of economic opportunity, intentional
         infliction of emotional harm or emotional distress, fraud [actual or
         constructive]), defamation [libel or slander], under the Age
         Discrimination in Employment Act of 1967, 29 U.S.C. Section 621, et
         seq., as amended by the Older Worker's Benefit Protection Act
         ("OWBPA"), under Title VII of the Civil Rights Act of 1964, 42 U.S.C.
         Section 2000e, et seq., as amended, by the Civil Rights Act of 1991,
         under the Americans with Disabilities Act of 1990, 42 U.S.C. Section
         12101, et seq., as amended, under the Family and Medical Leave Act of
         1993, 29 U.S.C. Section 2601, et seq., under 42 U.S.C. Section 1981,
         under the Fair Labor Standards Act, 29 U.S.C. Section 201, et seq.,
         under the Fair Credit Reporting Act, 15 U.S.C. Section 1681, et seq.,
         under any theory of retaliation, under any federal or state law or
         municipal ordinance relating to discrimination in employment, or under
         any other laws, ordinances, executive orders, rules, regulations or
         administrative or judicial case law arising under the statutory or
         common laws of the United States.

21.      Mr. Hemp knowingly and voluntarily specifically waives any rights or
         claims arising under 29 U.S.C. Section 621 et seq., as amended by the
         OWBPA and, more specifically, any right or claims under 29 U.S.C.
         Section 626. Mr. Hemp specifically states and acknowledges that:

         A.       This waiver is part of an Agreement written in a manner
                  calculated to be understood by him.

         B.       He does not waive rights or claims that may arise after the
                  date that this Agreement is executed.

<PAGE>

         C.       He is receiving consideration in addition to anything of value
                  to which he would already have been entitled prior to
                  executing this Agreement.

         D.       He has been and is hereby advised, in writing, to consult an
                  attorney prior to executing this Agreement.

         E.       He further acknowledges that he has been given a period of at
                  least twenty-one (21) days within which to consider this
                  Agreement.

22.      For a period of seven (7) days following the execution of this
         Agreement, Mr. Hemp may revoke this Agreement by notice to LFG.
         Further, this Agreement shall not become effective or enforceable until
         this revocation period has expired.

23.      Mr. Hemp warrants and represents that in executing this document he
         does so with full knowledge of any and all rights, which he may have
         with respect to all matters released. Mr. Hemp further understands,
         acknowledges and agrees that the payment of any consideration is not an
         admission of liability on the part of LFG, but to the contrary,
         represents a negotiated compromise and agreement. This Agreement, shall
         not in any way be interpreted to render Mr. Hemp a "prevailing party"
         for any purpose, including, but not limited to, an award of attorney's
         fees under any statute or otherwise.

24.      Mr. Hemp represents that he has not filed any complaints or claims
         against LFG with any local, state or federal court or agency, that Mr.
         Hemp will not do so at any time hereafter for claims which arose prior
         to the date he signs this Agreement, and that if any such court or
         agency assumes jurisdiction of any complaint or claim against LFG which
         arose prior to the execution of this Agreement, he will immediately
         request such court or agency to dismiss the matter and take all such
         additional steps necessary to facilitate such dismissal with prejudice.
         As a further material inducement to LFG to enter into this Agreement,
         Mr. Hemp covenants and agrees not to sue, or join with others in suing,
         LFG on any of the released Claims.

25.      Mr. Hemp will be entitled to indemnification (including reimbursement
         of legal expenses) by LFG to the extent permitted by its bylaws on the
         same basis as the indemnification provided to other former officers.
         Mr. Hemp will be entitled to coverage under LFG's directors and
         officers liability insurance policy on the same basis as the coverage
         provided to other former officers and employees.

26.      As a result of Mr. Hemp's position as President and Director of LFA,
         and his service on LFG's Senior Management Team, he has been
         instrumental in developing the strategic direction of LFG's business
         and has participated in the development of LFG's overall strategic
         direction. He also has developed, obtained or learned

<PAGE>

         specific confidential information and trade secrets which are the
         property of LFG. Mr. Hemp hereby covenants and agrees to use his best
         efforts and utmost diligence to guard and protect such confidential
         information and trade secrets and to not disclose or permit to be
         disclosed to any third party by any method whatsoever any such
         confidential information or trade secrets. Confidential information or
         trade secrets shall include, but not be limited to, any and all
         records, notes, memoranda, data, ideas, processes, methods, devices,
         programs, computer software, writings, research, personnel information
         of whatever nature, in the possession or control of LFG which has not
         or have not been published or disclosed to the general public or which
         gives LFG an opportunity to obtain an advantage over competitors who do
         not know or use it.

27.      During the transition and for a period of two (2) years following the
         termination date, Mr. Hemp agrees that he will not directly or
         indirectly solicit or endeavor to entice away from LFG any person who
         is currently employed by LFG or hereafter employed at any time through
         the termination date.

28.      During the transition and for a period of two (2) years following the
         termination date, Mr. Hemp will not act as a director, officer,
         employee, agent, consultant or advisor to, nor directly or indirectly
         become associated with any person, firm, company or corporation whose
         principal activity is competitive with LFG's retail financial planning
         organizations, provided that this prohibition shall not prevent Mr.
         Hemp from personally engaging in financial planning in a manner
         consistent with the open architecture philosophy of LFA nor restrict
         Mr. Hemp's ability to register with another company in the operation of
         his personal financial planning practice, should LFG substantially
         modify its support of or compensation arrangement with Mr. Hemp as a
         fee based financial planner. Mr. Hemp specifically acknowledges that
         the geographic region to which this restriction applies is national in
         scope since that is the region in which Mr. Hemp performed services for
         LFG during the past 7 years. This restriction does not prohibit Mr.
         Hemp from buying, selling, or otherwise trading in the securities of
         any corporation that is listed on any recognized securities exchange,
         and he may engage in any other business activities not competitive with
         LFG. LFG will not object to Mr. Hemp's service on the boards of other
         companies as a director so long as there is no conflict with the terms
         of this paragraph. Mr. Hemp may request a waiver by the Chief Executive
         Officer of LFG ("CEO") of the applicability of this provision to
         specific activities in which Mr. hemp contemplates engaging, in which
         case such waiver request will be considered by the CEO in good faith,
         taking into consideration all of the facts and circumstances.

29.      Mr. Hemp agrees that during the transition and for a period of two (2)
         years following the termination date, neither he nor any entity
         directly or indirectly controlled by him will directly or indirectly
         participate in a proscribed activity. A

<PAGE>

         "proscribed activity" shall mean either (1) soliciting others to invest
         in the common stock of LNC for the purpose of effecting an acquisition
         of control of LNC or his directly investing in more than one percent
         (1%) of the common stock of LNC, or (2) using confidential information
         or trade secrets (as described above) to assist any person, entity or
         group of persons which intends to or does attempt to effect an
         acquisition of control of LNC. The term "Control" shall be defined for
         purposes of this paragraph to have the meaning of control contained in
         Ind. Code Ann. Section 27-1-23-1(e)[Burns, 2001 Supp.].

30.      Mr. Hemp warrants and represents that no other person or entity has any
         interest in the matters released and that he has not assigned or
         transferred or purported to assign or transfer to any person or entity
         all or any portion of the matters released.

31.      Mr. Hemp represents and acknowledges that he is not relying and has not
         relied on any representation or statements made by LFG with respect to
         any of the matters released or with regard to his rights or asserted
         rights in connection with this Agreement. Mr. Hemp hereby assumes the
         risk of any mistake of fact with regard to any of the matters released
         or with regard to any of the facts which are now unknown to him
         relating thereto.

32.      Mr. Hemp represents and agrees that he shall not communicate the terms
         of this Agreement or disclose any information concerning this
         Agreement, or any information discussed by the parties in negotiation
         of this Agreement to any person, corporation, or other entity for any
         purpose whatsoever without prior written permission from LFG, except to
         the extent necessary to Mr. Hemp's spouse, attorney, tax preparer,
         accountant, or other financial advisor, or as required by law.

33.      If any provision in this Agreement is breached or violated by Mr. Hemp,
         and not remedied by Mr. Hemp within 10 days of his receipt of a written
         notice from LFG, all payments made by LFG shall immediately stop.

34.      This Agreement may not be introduced into evidence or relied upon by
         either party in subsequent legal proceedings, other than proceedings
         arising out of this Agreement unless required by law.

35.      This Agreement shall be binding upon Mr. Hemp and upon his heirs,
         executors, administrators, personal representatives, successors, and
         assigns, and shall inure to the benefit of LFG and to its respective
         heirs, administrators, representatives, executors, successors, and
         assigns.

<PAGE>

36.      This Agreement is made and entered into in the State of Texas, and
         shall in all respects be interpreted, enforced and governed under the
         internal laws (and not the conflicts of laws rules) of said State.
         Should any provision of this Agreement be declared or determined to be
         null, void, inoperative, illegal or invalid for any reason, the
         validity of the remaining parts, terms or provisions shall not be
         affected, and they shall retain their full force and effect. The null,
         void, inoperative, illegal or invalid part, term, or provision shall be
         deemed not to be a part of this Agreement. As used in this Agreement,
         the singular or plural number shall be deemed to include the other
         whenever the context so indicates or requires. The language of all
         parts of this Agreement shall in all cases be construed as a whole,
         according to its fair meaning, and not strictly for or against any of
         the parties.

37.      This Agreement and the Exhibits hereto sets forth the entire agreement
         between the parties, and fully supersedes any and all prior
         negotiations, agreements or understandings between the parties
         pertaining to the subject matter of this Agreement. This Agreement may
         not be modified or amended except by a written agreement signed by the
         parties hereto.

<PAGE>

                  PLEASE READ CAREFULLY. THIS AGREEMENT, WAIVER
                     AND GENERAL RELEASE INCLUDES A GENERAL
                     RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS

                             AFFIRMATION OF RELEASOR

         I warrant that this Agreement reflects the entire settlement between
LFG and myself. I have read this Agreement carefully, and I have been given the
opportunity to consult with private counsel concerning its terms and effect and
concerning my rights. I fully understand that this Agreement generally releases
all of my claims, both known and unknown, arising prior to the execution hereof,
against LFG, except as specifically otherwise provided herein. I execute this
Agreement voluntarily and of my own choice with full and complete knowledge and
understanding of its significance and effect.

Dated:      January 20, 2003
      ------------------------------            --------------------------------
                                                J. Michael Hemp

Witness:
        -----------------------------------------

I, Linda Hemp, the legal spouse of J. Michael Hemp having read and reviewed the
above Agreement, do hereby freely and knowingly consent to J. Michael Hemp
entering into said Agreement.

Dated:      January 20, 2003
      ------------------------------            --------------------------------
                                                Linda Hemp

Witness:
        -----------------------------------------

<PAGE>

                                ACCEPTANCE OF LFG

         The undersigned accepts the foregoing Agreement on behalf of LFG.

Dated:      January 30, 2003
      ------------------------------        ------------------------------------
                                            Authorized to execute this Agreement
                                            on behalf of Lincoln Financial
                                            Advisors Corporation

Witness:
        ---------------------------------------

<PAGE>

                                    EXHIBIT A

TO:      Cynthia A. Rose
         Secretary

         C. Suzanne Womack
         Secretary

SUBJECT: Resignation

         Effective immediately, I resign as an officer of Lincoln National
Corporation and its subsidiary companies as set forth below:

         President
               Lincoln Financial Advisors Corporation
               LFA, Limited Liability Company

Dated:                         , 200
      -------------------------     --     -------------------------------------
                                                      J. Michael Hemp

<PAGE>

                                    EXHIBIT B

TO:      Cynthia A. Rose
         Secretary

         C. Suzanne Womack
         Secretary

SUBJECT: Resignation

         Effective May 1, 2003, unless asked to resign earlier by the Chief
Executive Officer of Lincoln National Corporation, I resign as a director and/or
officer of Lincoln National Corporation and all of its subsidiary companies in
which I hold such a position, including but not limited to the following:

         President and Director
               Lincoln Life and Annuity Distributors, Inc.
               Lincoln National Insurance Associates, Inc.
               Lincoln National Insurance Associates of Alabama, Inc.
               Lincoln National Insurance Associates of Hawaii, Inc.
               Lincoln National Insurance Associates of Massachusetts, Inc.
               Lincoln National Insurance Associates of Ohio, Inc.
               Lincoln National Insurance Associates of Texas, Inc.

         President and Managing Committee Director
               LFA of Delaware, Limited Liability Company

         Managing Committee Director
               LFA, Limited Liability Company

         Senior Vice President
               The Lincoln National Life Insurance Company

         Director
               Lincoln Financial Advisors Corporation
               Lincoln Financial Group, Inc.
               California Fringe Benefit and Insurance Marketing Corporation

<PAGE>

         Member of Executive Steering Committee
               Lincoln National Corporation

Dated:                         , 200__
      -------------------------            -------------------------------------
                                                       J. Michael Hemp

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