Second-Degree Card
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In Paper Mario, after Mario defeats Chan and gets the First-Degree Card, he can fight Lee in the Toad Town Dojo.
After defeating Lee, Mario receives the Second-Degree Card.
This item proves his bravery and allows Mario to fight The Master.
There is a un-named yellow Dryite who has a Second-Degree Card as well. It implies that the Dryite fought Lee to gain the Second-Degree Card while visiting Toad Town.