Document:

PURCHASE AND SALE AGREEMENT

                                     BETWEEN

                              BLAST RESOURCES INC.

                                       AND

                               CAROLYN A. SULLIVAN

                    Dated as of the 24th day of August, 2004

<PAGE>

                           PURCHASE AND SALE AGREEMENT

THIS AGREEMENT made as of the 24th day of August, 2004

AMONG:

         BLAST  RESOURCES  INC., a company existing  under the laws of the State
         of Nevada and having its head office at 165  Larose Avenue,  Suite 717,
         Etobicoke, Ontario, M9P 3S9

          ("Blast")

AND:

         CAROLYN A. SULLIVAN,  of  767  Appleyard  Court,  Port  Moody,  British
         Columbia, V3H 3X1

         (the "Vendor")

WHEREAS:

A.       The Vendor holds, directly or indirectly,  interests in certain mineral
         exploration claims located in British Columbia;

B.       The Vendor wishes to sell and Blast wishes to purchase a  100% interest
         in  the  Property  on  the  terms  and  conditions  contained  in  this
         Agreement.

In  consideration  of the premises,  covenants and agreements  contained in this
Agreement, the parties covenant and agree each with the other as follows:

1.       INTERPRETATION

1.1      Definitions
         -----------
For the  purposes of this  Agreement  and the  recitals in and  Schedule to this
Agreement,  unless the  context  otherwise  requires,  the  following  words and
phrases will have the meanings indicated below:

(a)      "Agreement"  means  this Agreement  including the recitals and Schedule
         hereto,  which  are  incorporated  by  this reference,  as  amended and
         supplemented;

(b)      "Property"  means  the  mineral  exploration  claims located in British
         Columbia and listed in Schedule 1 hereto;

(c)      "Purchase Price" means 350,000 shares of restricted common stock in the
         capital of Blast;

(d)      "The Vendor" means Carolyn Sullivan;

(e)      "Blast" means Blast Resources Inc., a company incorporated and existing
         under the laws of Nevada;

                                      -1-
<PAGE>

1.2      Interpretation
         --------------
In this Agreement,  except as otherwise  expressed or provided or as the context
otherwise requires:

(a)      the headings and  captions are provided for  convenience  only and will
         not  form a part of this  Agreement, and will not be used to interpret,
         define or limit the scope, extent or intent of this Agreement or any of
         its provisions; and

(b)      a reference to time or date is to the local time or date in Port Moody,
         British  Columbia,  Canada,  unless  specifically indicated otherwise;

1.3      Amendment
         ---------
No  amendment,  waiver,  termination  or  variation  of the  terms,  conditions,
warranties, covenants, agreements and undertakings set out herein will be of any
force or effect  unless  the same is reduced to  writing  duly  executed  by all
parties  hereto in the same manner and with the same formality as this Agreement
is executed.

1.4      Waiver
         ------
No waiver of any of the provisions of this Agreement will constitute a waiver of
any other  provision  (whether or not similar)  and no waiver will  constitute a
continuing waiver unless otherwise expressly provided.

1.5      Schedule
         --------
The following Schedule are attached hereto and form a part hereof:

            Schedule      Subject
            --------      -------
                1         Description of Property

2.       PURCHASE AND SALE

2.1      Purchase and Sale
         -----------------
Subject  to the  terms  and  conditions  of  this  Agreement  and  based  on the
representations and warranties contained in this Agreement,  Blast hereby offers
to purchase the Property  from the Vendor and the Vendor  hereby  agrees to sell
the Property to Blast.

                                      -2-
<PAGE>

2.2      Consideration
         -------------
In consideration for the sale by the Vendor to Blast of the Property, Blast will
pay the Purchase Price for the Property to the Vendor on the Closing date.

3.       REPRESENTATIONS AND WARRANTIES

3.1      Representations and Warranties of The Vendor
         --------------------------------------------
The Vendor  represents and warrants to and in favour of the Blast as follows and
acknowledges that Blast is relying upon such  representations  and warranties in
consummating the transactions contemplated by this Agreement:

(a)      This  Agreement  has been duly executed and delivered by the Vendor and
         constitutes  a valid and binding obligation of the Vendor in accordance
         with its terms;

(b)      Schedule 1 hereto contains an accurate and complete  description of the
         Property;

(c)      No  person  has  any  agreement  or  option  or any right  or privilege
         (whether by law, pre-emptive or  contractual)  capable  of  becoming an
         agreement  or option for the purchase  from the  Vendor of any interest
         in the Property;

(d)      The entering into, execution, delivery and performance by the Vendor of
         this  Agreement  will  not  violate  or contravene  or conflict with or
         result  in  a  breach  of  or  default  or  give  rise  to any right of
         termination,  acceleration,  cancellation  or  modification  under  any
         of the terms  and  conditions  of any  contract, agreement, commitment,
         arrangement or understanding pursuant to which the  Vendor holds or has
         acquired its interest in the Property or any other contract, agreement,
         commitment, arrangement, understanding or restriction, written or oral,
         to  which  the  Vendor  is a party or by which it is bound;

(e)      To the best of the knowledge of the Vendor after due enquiry, there are
         no  legal  conflicts of any  nature and  no investigations or legal  or
         administrative  affairs  pending  against the Vendor in connection with
         the  Property  or  for  any  other  cause  and  there  is no pending or
         threatened  decree, decision,  sentence,  injunction, order or award of
         any court, arbitral  tribunal or governmental authority  or any action,
         procedure, arbitration,  administrative   or   judicial  investigation,
         actual or  threatened, with respect to the Vendor or the Property;

(f)      The  Vendor  holds  all  right,  title  and  interest  in  and  to  the
         Property,  and  the  Property  is  free  of  any  lien,  claim, pledge,
         privilege, levy, lease, sublease or rights of any person and other than
         government royalties, government work requirements and other conditions
         imposed by a governmental authority;

3.2      Representations and Warranties of Blast
         ---------------------------------------
Blast  represents  and  warrants  to and in favour of the Vendor as follows  and
acknowledges  that  the  Vendor  are  relying  upon  such   representations  and
warranties in consummating the transactions contemplated by this Agreement:

(a)      Blast is a corporation duly incorporated and validly subsisting  and in
         good standing in the State of Nevada;

                                      -3-

<PAGE>

(b)      Blast  has  the  corporate  power  and  authority  to  enter  into this
         Agreement and to perform its obligations hereunder;

(c)      The  execution and delivery of this Agreement and the completion of the
         transactions  contemplated  herein  will constitute a valid and binding
         obligation of Blast enforceable  against  it  in  accordance  with  its
         terms;

(d)      The entering into, execution,  delivery and performance by the Blast of
         this  Agreement  will not  violate or  contravene  or  conflict with or
         result  in  a  breach  of  or  default  or  give  rise  to any right of
         termination,  acceleration,  cancellation  or  modification  under  any
         of the terms  and  conditions  of any  contract, agreement, commitment,
         arrangement, understanding or  restriction,  written  or oral, to which
         which  it is  bound or under the constating documents  or directors' or
         shareholders' resolutions of Blast;

4.       CLOSING

4.1      Time and Place of Closing
         -------------------------
The closing (the  "Closing") of this Agreement will take place at the offices of
Blast at 2:00 p.m. (Vancouver time) on August 25, 2004.

4.2      Closing Documents
         -----------------
At Closing, the parties hereto will table the following documents:

(a)      Documents of The Vendor:  The  Vendor  will table for delivery to Blast
         title transfer  documents relating to the Property in a form acceptable
         to Blast's legal counsel.

(b)      Documents  of Blast.  Blast  will  table for  delivery  to the Vendor a
         certificate respresenting  350,000  fully  paid, non-assessable  shares
         of common stock in the capital of Blast  registered in the  name of the
         Vendor.

5.       TERMINATION

5.1      Mutual Termination
         ------------------
This  Agreement  may,  prior to Closing,  be terminated by the parties hereto by
mutual agreement in writing notwithstanding anything contained herein.

6.       GENERAL PROVISIONS

6.1      Time of Essence
         ---------------
Time  is and  will  be of the  essence  of  each  and  every  provision  of this
Agreement.

                                      -4-
<PAGE>

6.2      Finder's Fees and Brokers' Commission
         -------------------------------------
Each of the parties hereto  represents to the other that it has not incurred any
liability for any finders' fee or brokers'  commission  in  connection  with the
execution of this Agreement or the consummation of the transactions contemplated
herein.

6.3      Expenses
         --------
Blast will be  responsible  for all fees and  expenses  in  connection  with the
preparation,  execution and delivery of this Agreement and the  preparation  and
completion  of all  other  agreements,  documents,  approvals  and  transactions
contemplated by this Agreement.

6.4      Further Assurances
         ------------------
Each of the parties  hereto  will,  whether  before or after  Closing and at the
expense  of  Blast,   execute  and  deliver  all  such  further   documents  and
instruments,  give all such further assurances,  and do all such acts and things
as may  reasonably  be required to carry out the full intent and meaning of this
Agreement.

6.5      Entire Agreement
         ----------------
This  Agreement and the Schedule  hereto contain the whole  agreement  among the
parties  hereto in respect of the  subject  matter  hereof  and  supersedes  and
replaces all prior negotiations,  communications and correspondence  between the
parties hereto. There are no warranties,  representations,  terms, conditions or
collateral  agreements,  express or implied,  statutory or otherwise,  among the
Vendor and Blast other than as  expressly  set forth in this  Agreement  and the
Schedule hereto.

6.6      Enurement
         ---------
This  Agreement  will enure to the  benefit  of and be binding  upon each of the
parties  hereto  and their  respective  successors,  liquidators  and  permitted
assigns.

6.7      Assignment
         ----------
No party  hereto may assign any of its right,  title or interest in, to or under
this  Agreement,  nor will any such  purported  assignment  be valid amongst the
parties  hereto,  except with the prior written  consent of all parties  hereto,
such consent not to be unreasonably withheld.

6.8      Governing Law
         -------------
This Agreement will be construed and  interpreted in accordance with the laws of
the  Province  of British  Columbia,  Canada  and the laws of Canada  applicable
therein.  The  parties  hereto  irrevocably  attorn to the  jurisdiction  of the
arbitrators and courts of the Province of British Columbia, Canada and the venue
for any  actions or  arbitrations  arising  out of this  Agreement  will be Port
Moody, British Columbia.

6.9      Notices
         -------
All notices and other required  communications to the parties hereto shall be in
writing and shall be  addressed  respectively  to each  respective  party at the
addresses  first  written  above.  All  notices  shall be given (i) by  personal
delivery to the party by leaving a copy at the place specified for notice with a
receptionist  or an  apparently  responsible  individual,  or (ii) by electronic
facsimile  communication.  All  notices  will be  effective  and will be  deemed
delivered  (i) if by personal  delivery,  on the date of  delivery if  delivered
during normal business hours and, if not delivered during normal business hours,
on  the  next  business  day  following  delivery,  and  (ii)  if by  electronic
communication,  on the next  business day  following  receipt of the  electronic
communication. A party hereto may change its address for notice by notice to the
other party.

                                      -5-
<PAGE>

6.10     Counterparts
         ------------
This Agreement,  and any  certificates or other writing  delivered in connection
herewith,  may be executed in any number of counterparts with the same effect as
if all  parties  hereto  had  all  signed  the  same  documents,  and  all  such
counterparts  will be construed  together and will  constitute  one and the same
instrument.  The execution of this  Agreement and any other writing by any party
hereto  or  thereto  will not  become  effective  until  counterparts  hereof or
thereof,  as the case may be, have been  executed  by all the parties  hereto or
thereto,  and executed  copies  delivered to each party who is a party hereto or
thereto.  Such delivery may be made by facsimile  transmission  of the execution
page or pages,  hereof or  thereof,  to each of the other  parties  by the party
signing the particular counterpart, provided that forthwith after such facsimile
transmission,  an originally  executed  execution  page or pages is forwarded by
prepaid  express  courier to the other party by the party signing the particular
counterpart.

The parties  hereto have  executed and delivered  this  Agreement as of the date
first written above.

BLAST RESOURCES INC.

Per: /s/ Michael Mulberry
-------------------------
Authorized Signatory

/s/ Carolyn A. Sullivan
-----------------------
Carolyn A. Sullivan

                                      -6-

<PAGE>

                                   Schedule 1

                             Description of Property

               Claim Name                       Tenure Number
               ----------                       -------------
                Garn 1                             411676
                Garn 2                             411677
                Garn 3                             411678
                Garn 4                             411679
                Garn 5                             411680
                Garn 6                             412681<PAGE>

                                                                    Exhibit 10.1

[THE BOND MARKET
ASSOCIATION LOGO]

                           MASTER REPURCHASE AGREEMENT

                             September 1996 Version

DATED AS OF       JANUARY 26, 2005
--------------------------------------------------------------------------------

BETWEEN:          AMERICAN BUSINESS CREDIT, INC.
--------------------------------------------------------------------------------

AND               GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
--------------------------------------------------------------------------------

1.      APPLICABILITY

        From time to time the parties hereto may enter into transactions in
        which one party ("Seller") agrees to transfer to the other ("Buyer")
        securities or other assets ("Securities") against the transfer of funds
        by Buyer, with a simultaneous agreement by Buyer to transfer to Seller
        such Securities at a date certain or on demand, against the transfer of
        funds by Seller. Each such transaction shall be referred to herein as a
        "Transaction" and, unless otherwise agreed in writing, shall be governed
        by this Agreement, including any supplemental terms or conditions
        contained in Annex I hereto and in any other annexes identified herein
        or therein as applicable hereunder.

2.      DEFINITIONS

        (a)     "Act of Insolvency", with respect to any party, (i) the
                commencement by such party as debtor of any case or proceeding
                under any bankruptcy, insolvency, reorganization, liquidation,
                moratorium, dissolution, delinquency or similar law, or such
                party seeking the appointment or election of a receiver,
                conservator, trustee, custodian or similar official for such
                party or any substantial part of it property, or the convening
                of any meeting of creditors for purposes of commencing any such
                case or proceeding or seeking such an appointment or election,
                (ii) the commencement of any such case or proceeding against
                such party, or another seeking such an appointment or election,
                or the filing against a party of an application for a protective
                decree under the provisions of the Securities Investor
                Protection Act of 1970, which (A) is consented to or not timely
                contested by such party, (B) results in the entry of an order
                for relief, such an appointment or election, the issuance of
                such a protective decree or the entry of an order having a
                similar effect, or (C) is not dismissed within 15 days, (iii)
                the making by such party of a general assignment for the benefit
                of creditors, or (iv)

<PAGE>

                the admission in writing by such party of such party's inability
                to pay such party's debts as they become due;

        (b)     "Additional Purchased Securities", Securities provided by Seller
                to Buyer pursuant to Paragraph 4(a) hereof;

        (c)     "Buyer's Margin Amount", with respect to any Transaction as of
                any date, the amount obtained by application of the Buyer's
                Margin Percentage to the Repurchase Price for such Transaction
                as of such date;

        (d)     "Buyer's Margin Percentage", with respect to any Transaction as
                of any date, a percentage (which may be equal to the Seller's
                Margin Percentage) agreed to by Buyer and Seller or, in the
                absence of any such agreement, the percentage obtained by
                dividing the Market Value of the Purchased Securities on the
                Purchase Date by the Purchase Price on the Purchase Date for
                such Transaction;

        (e)     "Confirmation", the meaning specified in Paragraph 3(b) hereof;

        (f)     "Income", with respect to any Security at any time, any
                principal thereof and all interest, dividends or other
                distributions thereon;

        (g)     "Margin Deficit", the meaning specified in Paragraph 4(a)
                hereof;

        (h)     "Margin Excess", the meaning specified in Paragraph 4(b) hereof;

        (i)     "Margin Notice Deadline", the time agreed to by the parties in
                the relevant Confirmation, Annex I hereto or otherwise as the
                deadline for giving notice requiring same-day satisfaction of
                margin maintenance obligations as provided in Paragraph 4 hereof
                (or, in the absence of any such agreement, the deadline for such
                purposes established in accordance with market practice);

        (j)     "Market Value", with respect to any Securities as of any date,
                the price for such Securities on such date obtained from a
                generally recognized source agreed to by the parties or the most
                recent closing bid quotation from such a source, plus accrued
                Income to the extent not included therein (other than any Income
                credited or transferred to, or applied to the obligations of,
                Seller pursuant to Paragraph 5 hereof) as of such date (unless
                contrary to market practice for such Securities);

        (k)     "Price Differential", with respect to any Transaction as of any
                date, the aggregate amount obtained by daily application of the
                Pricing Rate for such Transaction to the Purchase Price for such
                Transaction on a 360 day per year basis for the actual number of
                days during the period commencing on (and including) the
                Purchase Date for such Transaction and ending on (but excluding)
                the date of determination (reduced by any amount of such Price
                Differential previously paid by Seller to Buyer with respect to
                such Transaction);

        (l)     "Pricing Rate", the per annum percentage rate for determination
                of the Price Differential;

                                       2

<PAGE>

        (m)     "Prime Rate", the prime rate of U.S. commercial banks as
                published in The Wall Street Journal (or, if more than one such
                rate is published, the average of such rates);

        (n)     "Purchase Date", the date on which Purchased Securities are to
                be transferred by Seller to Buyer;

        (o)     "Purchase Price", (i) on the Purchase Date, the price at which
                Purchased Securities are transferred by Seller to Buyer, and
                (ii) thereafter, except where Buyer and Seller agree otherwise,
                such price increased by the amount of any cash transferred by
                Buyer to Seller pursuant to Paragraph 4(b) hereof and decreased
                by the amount of any cash transferred by Seller to Buyer
                pursuant to Paragraph 4(a) hereof or applied to reduce Seller's
                obligations under clause (ii) of Paragraph 5 hereof;

        (p)     "Purchased Securities", the Securities transferred by Seller to
                Buyer in a Transaction hereunder, and any Securities substituted
                therefor in accordance with Paragraph 9 hereof. The term
                "Purchased Securities" with respect to any Transaction at any
                time also shall include Additional Purchased Securities
                delivered pursuant to Paragraph 4(a) hereof and shall exclude
                Securities returned pursuant to Paragraph 4(b) hereof;

        (q)     "Repurchase Date", the date on which Seller is to repurchase the
                Purchased Securities from Buyer, including any date determined
                by application of the provisions of Paragraph 3(c) or 11 hereof;

        (r)     "Repurchase Price", the price at which Purchased Securities are
                to be transferred from Buyer to Seller upon termination of a
                Transaction, which will be determined in each case (including
                Transactions terminable upon demand) as the sum of the Purchase
                Price and the Price Differential as of the date of such
                determination;

        (s)     "Seller's Margin Amount", with respect to any Transaction as of
                any date, the amount obtained by application of the Seller's
                Margin Percentage to the Repurchase Price for such Transaction
                as of such date;

        (t)     "Seller's Margin Percentage", with respect to any Transaction as
                of any date, a percentage (which may be equal to the Buyer's
                Margin Percentage) agreed to by Buyer and Seller or, in the
                absence of any such agreement, the percentage obtained by
                dividing the Market Value of the Purchased Securities on the
                Purchase Date by the Purchase Price on the Purchase Date for
                such Transaction.

3.      INITIATION; CONFIRMATION; TERMINATION

        (a)     An agreement to enter into a Transaction may be made orally or
                in writing at the initiation of either Buyer or Seller. On the
                Purchase Date for the Transaction, the Purchased Securities
                shall be transferred to Buyer or its agent against the transfer
                of the Purchase Price to an account of Seller.

                                       3

<PAGE>

        (b)     Upon agreeing to enter into a Transaction hereunder, Buyer or
                Seller (or both), as shall be agreed, shall promptly deliver to
                the other party a written confirmation of each Transaction (a
                "Confirmation"). The Confirmation shall describe the Purchased
                Securities (including CUSIP number, if any), identify Buyer and
                Seller and set forth (i) the Purchase Date, (ii) the Purchase
                Price, (iii) the Repurchase Date, unless the Transaction is to
                be terminable on demand, (iv) the Pricing Rate or Repurchase
                Price applicable to the Transaction, and (v) any additional
                terms or conditions of the Transaction not inconsistent with
                this Agreement. The Confirmation, together with this Agreement,
                shall constitute conclusive evidence of the terms agreed between
                Buyer and Seller with respect to the Transaction to which the
                Confirmation relates, unless with respect to the Confirmation
                specific objection is made promptly after receipt thereof. In
                the event of any conflict between the terms of such Confirmation
                and this Agreement, this Agreement shall prevail.

        (c)     In the case of Transactions terminable upon demand, such demand
                shall be made by Buyer or Seller, no later than such time as is
                customary in accordance with market practice, by telephone or
                otherwise on or prior to the business day on which such
                termination will be effective. On the date specified in such
                demand, or on the date fixed for termination in the case of
                Transactions having a fixed term, termination of the Transaction
                will be effected by transfer to Seller or its agent of the
                Purchased Securities and any Income in respect thereof received
                by Buyer (and not previously credited or transferred to, or
                applied to the obligations of, Seller pursuant to Paragraph 5
                hereof) against the transfer of the Repurchase Price to an
                account of Buyer.

4.      MARGIN MAINTENANCE

        (a)     If at any time the aggregate Market Value of all Purchased
                Securities subject to all Transactions in which a particular
                party hereto is acting as Buyer is less than the aggregate
                Buyer's Margin Amount for all such Transactions (a "Margin
                Deficit"), then Buyer may by notice to Seller require Seller in
                such Transactions, at Seller's option, to transfer to Buyer cash
                or additional Securities reasonably acceptable to Buyer
                ("Additional Purchased Securities"), so that the cash and
                aggregate Market Value of the Purchased Securities, including
                any such Additional Purchased Securities, will thereupon equal
                or exceed such aggregate Buyer's Margin Amount (decreased by the
                amount of any Margin Deficit as of such date arising from any
                Transactions in which such Buyer is acting as Seller).

        (b)     It at any time the aggregate Market Value of all Purchased
                Securities subject to all Transactions in which a particular
                party hereto is acting as Seller exceeds the aggregate Seller's
                Margin Amount for all such Transactions at such time (a "Margin
                Excess"), then Seller may by notice to Buyer require Buyer in
                such Transactions, at Buyer's option, to transfer cash or
                Purchased Securities to Seller, so that the aggregate Market
                Value of the Purchased Securities, after deduction of any such
                cash or any Purchased Securities so transferred, will thereupon
                not exceed such aggregate Seller's Margin Amount (increased by
                the amount of any

                                       4

<PAGE>

                Margin Excess as of such date arising from any Transactions in
                which such Seller is acting as Buyer).

        (c)     If any notice is given by Buyer or Seller under subparagraph (a)
                or (b) of this Paragraph at or before the Margin Notice Deadline
                on any business day, the party receiving such notice shall
                transfer cash or Additional Purchased Securities as provided in
                such subparagraph no later than the close of business in the
                relevant market on such day. If any such notice is given after
                the Margin Notice Deadline, the party receiving such notice
                shall transfer such cash or Securities no later than the close
                of business in the relevant market on the next business day
                following such notice.

        (d)     Any cash transferred pursuant to this Paragraph shall be
                attributed to such Transactions as shall be agreed upon by Buyer
                and Seller.

        (e)     Seller and Buyer may agree, with respect to any or all
                Transactions hereunder, that the respective rights of Buyer or
                Seller (or both) under subparagraphs (a) and (b) of this
                Paragraph may be exercised only where a Margin Deficit or Margin
                Excess, as the case may be, exceeds a specified dollar amount or
                a specified percentage of the Repurchase Prices for such
                Transactions (which amount or percentage shall be agreed to by
                Buyer and Seller prior to entering into any such Transactions).

        (f)     Seller and Buyer may agree, with respect to any or all
                Transactions hereunder, that the respective rights of Buyer and
                Seller under subparagraphs (a) and (b) of this Paragraph to
                require the elimination of a Margin Deficit or a Margin Excess,
                as the case may be, may be exercised whenever such a Margin
                Deficit or Margin Excess exists with respect to any single
                Transaction hereunder (calculated without regard to any other
                Transaction outstanding under this Agreement).

5.      INCOME PAYMENTS

        Seller shall be entitled to receive an amount equal to all income paid
        or distributed on or in respect of the Securities that is not otherwise
        received by Seller, to the full extent it would be so entitled if the
        Securities had not been sold to Buyer. Buyer shall, as the parties may
        agree with respect to any Transaction (or, in the absence of any such
        agreement, as Buyer shall reasonably determine in its discretion), on
        the date such Income is paid or distributed either (i) transfer to or
        credit to the account of Seller such Income with respect to any
        Purchased Securities subject to such Transaction or (ii) with respect to
        Income paid in cash, apply the Income payment or payments to reduce the
        amount, if any, to be transferred to Buyer by Seller upon termination of
        such Transaction. Buyer shall not be obligated to take any action
        pursuant to the preceding sentence (A) to the extent that such action
        would result in the creation of a Margin Deficit, unless prior thereto
        or simultaneously therewith Seller transfers to Buyer cash or Additional
        Purchased Securities sufficient to eliminate such Margin Deficit, or (B)
        if an Event of Default with respect to Seller has occurred and is then
        continuing at the time such Income is paid or distributed.

                                       5

<PAGE>

6.      SECURITY INTEREST

        Although the parties intend that all Transactions hereunder be sales and
        purchases and not loans, in the event any such Transactions are deemed
        to be loans, Seller shall be deemed to have pledged to Buyer as security
        for the performance by Seller of its obligations under each such
        Transaction, and shall be deemed to have granted to Buyer a security
        interest in, all of the Purchased Securities with respect to all
        Transactions hereunder and all Income thereon and other proceeds
        thereof.

7.      PAYMENT AND TRANSFER

        Unless otherwise mutually agreed, all transfers of funds hereunder shall
        be in immediately available funds. All Securities transferred by one
        party hereto to the other party (i) shall be in suitable form for
        transfer or shall be accompanied by duly executed instruments of
        transfer or assignment in blank and such other documentation as the
        party receiving possession may reasonably request, (ii) shall be
        transferred on the book entry system of a Federal Reserve Bank, or (iii)
        shall be transferred by any other method mutually acceptable to Seller
        and Buyer.

8.      SEGREGATION OF PURCHASED SECURITIES

        To the extent required by applicable law, all Purchased Securities in
        the possession of Seller shall be segregated from other securities in
        its possession and shall be identified as subject to this Agreement.
        Segregation may be accomplished by appropriate identification on the
        books and records of the holder, including a financial or securities
        intermediary or a clearing corporation. All of Seller's interest in the
        Purchased Securities shall pass to Buyer on the Purchase Date and,
        unless otherwise agreed by Buyer and Seller, nothing in this Agreement
        shall preclude Buyer from engaging in repurchase transactions with the
        Purchased Securities or otherwise selling, transferring, pledging or
        hypothecating the Purchased Securities, but no such transaction shall
        relieve Buyer of its obligations to transfer Purchased Securities to
        Seller pursuant to Paragraph 3, 4 or 11 hereof, or of Buyer's obligation
        to credit or pay Income to, or apply Income to the obligations of,
        Seller pursuant to Paragraph 5 hereof.

                                       6

<PAGE>

--------------------------------------------------------------------------------
        REQUIRED DISCLOSURE FOR TRANSACTIONS IN WHICH THE SELLER
        RETAINS CUSTODY OF THE PURCHASED SECURITIES

        Seller is not permitted to substitute other securities for those subject
        to this Agreement and therefore must keep Buyer's securities segregated
        at all times, unless in this Agreement Buyer grants Seller the right to
        substitute other securities. If Buyer grants the right to substitute,
        this means that Buyer's securities will likely be commingled with
        Seller's own securities during the trading day. Buyer is advised that,
        during any trading day that Buyer's securities are commingled with
        Seller's securities, they [will]* [may]** be subject to liens granted by
        Seller to [its clearing bank]* [third parties]** and may be used by
        Seller for deliveries on other securities transactions. Whenever the
        securities are commingled, Seller's ability to resegregate substitute
        securities for Buyer will be subject to Seller's ability to satisfy [the
        clearing]* [any]** lien or to obtain substitute securities.

        * Language to be used under 17 C.F.R. 403.4(e) if Seller is a government
        securities broker or dealer other than a financial institution.

        ** Language to be used under 17 C.F.R. 403.5(d) if Seller is a financial
        institution.
--------------------------------------------------------------------------------

9.      SUBSTITUTION

        (a)     Seller may, subject to agreement with and acceptance by Buyer,
                substitute other Securities for any Purchased Securities. Such
                substitution shall be made by transfer to Buyer of such other
                Securities and transfer to Seller of such Purchased Securities.
                After substitution, the substituted Securities shall be deemed
                to be Purchased Securities.

        (b)     In Transactions in which Seller retains custody of Purchased
                Securities, the parties expressly agree that Buyer shall be
                deemed, for purposes of subparagraph (a) of this Paragraph, to
                have agreed to and accepted in this Agreement substitution by
                Seller of other Securities for Purchased Securities; provided,
                however, that such other Securities shall have a Market Value at
                least equal to the Market Value of the Purchased Securities for
                which they are substituted.

10.     REPRESENTATIONS

        Each of Buyer and Seller represents and warrants to the other that (1)
        it is duly authorized to execute and deliver this Agreement, to enter
        into Transactions contemplated hereunder and to perform its obligations
        hereunder and has taken all necessary action to authorize such
        execution, delivery and performance, (ii) it will engage in such
        Transactions as principal (or, if agreed in writing, in the form of an
        annex hereto or otherwise, in advance of any Transaction by the other
        party hereto, as agent for a disclosed principal), (iii) the person
        signing this Agreement on its behalf is duly authorized to do so on its
        behalf (or

                                       7

<PAGE>

        on behalf of any such disclosed principal), (iv) it has obtained all
        authorizations of any governmental body required in connection with this
        Agreement and the Transactions hereunder and such authorizations are in
        full force and effect and (v) the execution, delivery and performance of
        this Agreement and the Transactions hereunder will not violate any law,
        ordinance, charter, bylaw or rule applicable to it or any agreement by
        which it is bound or by which any of its assets are affected. On the
        Purchase Date for any Transaction Buyer and Seller shall each be deemed
        to repeat all the foregoing representations made by it.

11.     EVENTS OF DEFAULT

        In the event that (i) Seller fails to transfer or Buyer falls to
        purchase Purchased Securities upon the applicable Purchase Date, (ii)
        Seller fails to repurchase or Buyer fails to transfer Purchased
        Securities upon the applicable Repurchase Date, (iii) Seller or Buyer
        fails to comply with Paragraph 4 hereof, (iv) Buyer fails, after one
        business day's notice, to comply with Paragraph 5 hereof, (v) an Act of
        Insolvency occurs with respect to Seller or Buyer, (vi) any
        representation made by Seller or Buyer shall have been incorrect or
        untrue in any material respect when made or repeated or deemed to have
        been made or repeated, or (vii) Seller or Buyer shall admit to the other
        its inability to, or its intention not to, perform any of its
        obligations hereunder (each an "Event of Default"):

        (a)     The nondefaulting party may, at its option (which option shall
                be deemed to have been exercised immediately upon the occurrence
                of an Act of Insolvency), declare an Event of Default to have
                occurred hereunder and, upon the exercise or deemed exercise of
                such option, the Repurchase Date for each Transaction hereunder
                shall, if it has not already occurred, be deemed immediately to
                occur (except that, in the event that the Purchase Date for any
                Transaction has not yet occurred as of the date of such exercise
                or deemed exercise, such Transaction shall be deemed immediately
                canceled). The nondefaulting party shill (except upon the
                occurrence of an Act of Insolvency) give notice to the
                defaulting party of the exercise of such option as promptly as
                practicable.

        (b)     In all Transactions in which the defaulting party is acting as
                Seller, if the nondefaulting party exercises or is deemed to
                have exercised the option referred to in subparagraph (a) of
                this Paragraph, (i) the defaulting party's obligations in such
                Transactions to repurchase all Purchased Securities, at the
                Repurchase Price therefor on the Repurchase Date determined in
                accordance with subparagraph (a) of this Paragraph, shall
                thereupon become immediately due and payable, (ii) all Income
                paid after such exercise or deemed exercise shall be retained by
                the nondefaulting party and applied to the aggregate unpaid
                Repurchase Prices and any other amounts owing by the defaulting
                party hereunder, and (iii) the defaulting party shall
                immediately deliver to the nondefaulting party any Purchased
                Securities subject to such Transactions then in the defaulting
                party's possession or control.

        (c)     In all Transactions in which the defaulting party is acting as
                Buyer, upon tender by the nondefaulting party of payment of the
                aggregate Repurchase Prices for all

                                       8

<PAGE>

                such Transactions, all right, title and interest in and
                entitlement to all Purchased Securities subject to such
                Transactions shall be deemed transferred to the nondefaulting
                party, and the defaulting party shall deliver all such Purchased
                Securities to the nondefaulting party.

        (d)     If the nondefaulting party exercises or is deemed to have
                exercised the option referred to in subparagraph (a) of this
                Paragraph, the nondefaulting party, without prior notice to the
                defaulting party, may:

                (i)     as to Transactions in which the defaulting party is
                        acting as Seller, (A) immediately sell, in a recognized
                        market (or otherwise in a commercially reasonable
                        manner) at such price or prices as the nondefaulting
                        party may reasonably deem satisfactory, any or all
                        Purchased Securities subject to such Transactions and
                        apply the proceeds thereof to the aggregate unpaid
                        Repurchase Prices and any other amounts owing by the
                        defaulting party hereunder or (B) in its sole discretion
                        elect, in lieu of selling all or a portion of such
                        Purchased Securities, to give the defaulting party
                        credit for such Purchased Securities in an amount equal
                        to the price therefor on such date, obtained from a
                        generally recognized source or the most recent closing
                        bid quotation from such a source, against the aggregate
                        unpaid Repurchase Prices and any other amounts owing by
                        the defaulting party hereunder; and

                (ii)    as to Transactions in which the defaulting party is
                        acting as Buyer, (A) immediately purchase, in a
                        recognized market (or otherwise in a commercially
                        reasonable manner) at such price or prices as the
                        nondefaulting party may reasonably deem satisfactory,
                        securities ("Replacement Securities") of the same class
                        and amount as any Purchased Securities that are not
                        delivered by the defaulting party to the nondefaulting
                        party as required hereunder or (B) in its sole
                        discretion elect, in lieu of purchasing Replacement
                        Securities, to be deemed to have purchased Replacement
                        Securities at the price therefor on such date, obtained
                        from a generally recognized source or the most recent
                        closing offer quotation from such a source.

                Unless otherwise provided in Annex I, the parties acknowledge
                and agree that (1) the Securities subject to any Transaction
                hereunder are instruments traded in a recognized market, (2) in
                the absence of a generally recognized source for prices or bid
                or offer quotations for any Security, the nondefaulting party
                may establish the source therefor in its sole discretion and (3)
                all prices, bids and offers shall be determined together with
                accrued Income (except to the extent contrary to market practice
                with respect to the relevant Securities).

        (e)     As to Transactions in which the defaulting party is acting as
                Buyer, the defaulting party shall be liable to the nondefaulting
                party for any excess of the price paid (or deemed paid) by the
                nondefaulting party for Replacement Securities over the
                Repurchase Price for the Purchased Securities replaced thereby
                and for any

                                       9

<PAGE>

                amounts payable by the defaulting party under Paragraph 5 hereof
                or otherwise hereunder.

        (f)     For purposes of this Paragraph 11, the Repurchase Price for each
                Transaction hereunder in respect of which the defaulting party
                is acting as Buyer shall not increase above the amount of such
                Repurchase Price for such Transaction determined as of the date
                of the exercise or deemed exercise by the nondefaulting party of
                the option referred to in subparagraph (a) of this Paragraph.

        (g)     The defaulting party shall be liable to the nondefaulting party
                for (i) the amount of all reasonable legal or other expenses
                incurred by the nondefaulting party in connection with or as a
                result of an Event of Default, (ii) damages in an amount equal
                to the cost (including all fees, expenses and commissions) of
                entering into replacement transactions and entering into or
                terminating hedge transactions in connection with or as a result
                of an Event of Default, and (iii) any other loss, damage, cost
                or expense directly arising or resulting from the occurrence of
                an Event of Default in respect of a Transaction.

        (h)     To the extent permitted by applicable law, the defaulting party
                shall be liable to the nondefaulting party for interest on any
                amounts owing by the defaulting party hereunder, from the date
                the defaulting party becomes liable for such amounts hereunder
                until such amounts are (i) paid in full by the defaulting party
                or (ii) satisfied in full by the exercise of the nondefaulting
                party's rights hereunder. Interest on any sum payable by the
                defaulting party to the nondefaulting party under this Paragraph
                11(h) shall be at a rate equal to the greater of the Pricing
                Rate for the relevant Transaction or the Prime Rate.

        (i)     The nondefaulting party shall have, in addition to its rights
                hereunder, any rights otherwise available to it under any other
                agreement or applicable law.

12.     SINGLE AGREEMENT

        Buyer and Seller acknowledge that, and have entered hereinto and will
        enter into each Transaction hereunder in consideration of and in
        reliance upon the fact that, all Transactions hereunder constitute a
        single business and contractual relationship and have been made in
        consideration of each other. Accordingly, each of Buyer and Seller
        agrees (i) to perform all of its obligations in respect of each
        Transaction hereunder, and that a default in the performance of any such
        obligations shall constitute a default by it in respect of all
        Transactions hereunder, (ii) that each of them shall be entitled to set
        off claims and apply property held by them in respect of any Transaction
        against obligations owing to them in respect of any other Transactions
        hereunder and (iii) that payments, deliveries and other transfers made
        by either of them in respect of any Transaction shall be deemed to have
        been made in consideration of payments, deliveries and other transfers
        in respect of any other Transactions hereunder, and the obligations to
        make any such payments, deliveries and other transfers may be applied
        against each other and netted.

13.     NOTICES AND OTHER COMMUNICATIONS

                                       10

<PAGE>

        Any and all notices, statements, demands or other communications
        hereunder may be given by a party to the other by mail, facsimile,
        telegraph, messenger or otherwise to the address specified in Annex II
        hereto, or so sent to such party at any other place specified in a
        notice of change of address hereafter received by the other. All
        notices, demands and requests hereunder may be made orally, to be
        confirmed promptly in writing, or by other communication as specified in
        the preceding sentence.

14.     ENTIRE AGREEMENT; SEVERABILITY

        This Agreement shall supersede any existing agreements between the
        parties containing general terms and conditions for repurchase
        transactions. Each provision and agreement herein shall be treated as
        separate and independent from any other provision or agreement herein
        and shall be enforceable notwithstanding the unenforceability of any
        such other provision or agreement.

15.     NON-ASSIGNABILITY; TERMINATION

        (a)     The rights and obligations of the parties under this Agreement
                and under any Transaction shall not be assigned by either party
                without the prior written consent of the other party, and any
                such assignment without the prior written consent of the other
                party shall be null and void. Subject to the foregoing, this
                Agreement and any Transactions shall be binding upon and shall
                inure to the benefit of the parties and their respective
                successors and assigns. This Agreement may be terminated by
                either party upon giving written notice to the other, except
                that this Agreement shall, notwithstanding such notice, remain
                applicable to any Transactions then outstanding.

        (b)     Subparagraph (a) of this Paragraph 15 shall not preclude a party
                from assigning, charging or otherwise dealing with all or any
                part of its interest in any sum payable to it under Paragraph 11
                hereof.

16.     GOVERNING LAW

        This Agreement shall be governed by the laws of the State of New York
        without giving effect to the conflict of law principles thereof.

17.     NO WAIVERS, ETC.

        No express or implied waiver of any Event of Default by either party
        shall constitute a waiver of any other Event of Default and no exercise
        of any remedy hereunder by any party shall constitute a waiver of its
        right to exercise any other remedy hereunder. No modification or waiver
        of any provision of this Agreement and no consent by any party to a
        departure herefrom shall be effective unless and until such shall be in
        writing and duly executed by both of the parties hereto. Without
        limitation on any of the foregoing, the failure to give a notice
        pursuant to Paragraph 4(a) or 4(b) hereof will not constitute a waiver
        of any right to do so at a later date.

18.     USE OF EMPLOYEE PLAN ASSETS

                                       11

<PAGE>

        (a)     If assets of an employee benefit plan subject to any provision
                of the Employee Retirement Income Security Act of 1974 ("ERISA")
                are intended to be used by either party hereto (the "Plan
                Party") in a Transaction, the Plan Party shall so notify the
                other party prior to the Transaction. The Plan Party shall
                represent in writing to the other party that the Transaction
                does not constitute a prohibited transaction under ERISA or is
                otherwise exempt therefrom, and the other party may proceed in
                reliance thereon but shall not be required so to proceed.

        (b)     Subject to the last sentence of subparagraph (a) of this
                Paragraph, any such Transaction shall proceed only if Seller
                furnishes or has furnished to Buyer its most recent available
                audited statement of its financial condition and its most recent
                subsequent unaudited statement of its financial condition.

        (c)     By entering into a Transaction pursuant to this Paragraph,
                Seller shall be deemed (i) to represent to Buyer that since the
                date of Seller's latest such financial statements, there has
                been no material adverse change in Seller's financial condition
                which Seller has not disclosed to Buyer, and (ii) to agree to
                provide Buyer with future audited and unaudited statements of
                its financial condition as they are issued, so long as it is a
                Seller in any outstanding Transaction involving a Plan Party.

19.     INTENT

        (a)     The parties recognize that each Transaction is a "repurchase
                agreement" as that term is defined in Section 101 of Title 11 of
                the United States Code, as amended (except insofar as the type
                of Securities subject to such Transaction or the term of such
                Transaction would render such definition inapplicable), and a
                "securities contract" as that term is defined in Section 741 of
                Title 11 of the United States Code, as amended (except insofar
                as the type of assets subject to such Transaction would render
                such definition inapplicable).

        (b)     It is understood that either party's right to liquidate
                Securities delivered to it in connection with Transactions
                hereunder or to exercise any other remedies pursuant to
                Paragraph 11 hereof is a contractual right to liquidate such
                Transaction as described in Sections 555 and 559 of Title 11 of
                the United States Code, as amended.

        (c)     The parties agree and acknowledge that if a party hereto is an
                "insured depository institution," as such term is defined in the
                Federal Deposit Insurance Act, as amended ("FDIA"), then each
                Transaction hereunder is a "qualified financial contract," as
                that term is defined in FDIA and any rules, orders or policy
                statements thereunder (except insofar as the type of assets
                subject to such Transaction would render such definition
                inapplicable).

        (d)     It is understood that this Agreement constitutes a "netting
                contract" as defined in and subject to Title IV of the Federal
                Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA")
                and each payment entitlement and

                                       12

<PAGE>

                payment obligation under any Transaction hereunder shall
                constitute a "covered contractual payment entitlement" or
                "covered contractual payment obligation", respectively, as
                defined in and subject to FDICIA (except insofar as one or both
                of the parties is not a "financial institution" as that term is
                defined in FDICIA).

20.     DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

        The parties acknowledge that they have been advised that:

        (a)     in the case of Transactions in which one of the parties is a
                broker or dealer registered with the Securities and Exchange
                Commission ("SEC") under Section 15 of the Securities Exchange
                Act of 1934 ("1934 Act"), the Securities Investor Protection
                Corporation has taken the position that the provisions of the
                Securities Investor Protection Act of 1970 ("SIPA") do not
                protect the other party with respect to any Transaction
                hereunder;

        (b)     in the case of Transactions in which one of the parties is a
                government securities broker or a government securities dealer
                registered with the SEC under Section 15C of the 1934 Act, SIPA
                will not provide protection to the other party with respect to
                any Transaction hereunder; and

        (c)     in the case of Transactions in which one of the parties is a
                financial institution, funds held by the financial institution
                pursuant to a Transaction hereunder are not a deposit and
                therefore are not insured by the Federal Deposit Insurance
                Corporation or the National Credit Union Share Insurance Fund,
                as applicable.

AMERICAN BUSINESS CREDIT, INC.        GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.

By:    /s/ Stephen M. Giroux          By:      /s/ Dominic Bastich
       -----------------------------           ---------------------------------
Title: Executive Vice President       Title:   Senior Vice President
       and General Counsel
       -----------------------------           ---------------------------------
Date:  January 26, 2005               Date:    January 26, 2005
       -----------------------------           ---------------------------------

                                       13
<PAGE>

                                  CONFIRMATION
                                       TO
                           MASTER REPURCHASE AGREEMENT

                     Date of Confirmation: January 26, 2005

        Reference is hereby made to the Master Repurchase Agreement (the "REPO
AGREEMENT") dated as of January 26, 2005 between Greenwich Capital Financial
Products, Inc. ("BUYER") and American Business Credit, Inc., as a
debtor-in-possession ("SELLER"). Capitalized terms used but not defined herein
shall have the meanings given to such terms in the Repo Agreement. This document
confirms the agreement of Buyer and Seller to enter into a Transaction on the
following terms:

I. PRINCIPAL TERMS.

         1.  Buyer:                    Greenwich Capital Financial Products,
                                       Inc.

         2.  Seller:                   American Business Credit, Inc.

         3.  Purchase Date:            January 26, 2005

         4.  Purchased Security:       Class X Certificate, No. X-2 issued by
                                       ABFS Mortgage Loan Trust 2002-4

         5.  Purchase Price:           $6,830,000

         6.  Pricing Rate:             One-month LIBOR plus 850 basis  points
                                       per annum reset monthly; provided
                                       that during the continuance of an Event
                                       of Default, the foregoing shall be
                                       increased by an additional 300 basis
                                       points per annum

         7.  Repurchase Date:          February 4, 2005; provided, however,
                                       that, if the DIP Facility is approved
                                       at the Interim Hearing pursuant to an
                                       order in form and substance satisfactory
                                       to the Buyer, the Buyer may, in its sole
                                       discretion, extend the Repurchase Date

         8.  Price Differential:       Aggregate of Pricing Rate applied  to
                                       Purchase Price for the term of the
                                       Transaction

         9.  Repurchase Price:         The Purchase Price for the Purchased
                                       Security plus the Price Differential

II. DEFINITIONS. Notwithstanding anything to the contrary in the Repo Agreement
or elsewhere:

        "ABFS DEBTORS" shall mean American Business Financial Services, Inc., a
Delaware corporation; American Business Credit, Inc., a Pennsylvania
corporation; HomeAmerican Credit, Inc., a Pennsylvania corporation; American
Business Mortgage Services, Inc., a New Jersey corporation; Tiger Relocation
Company, a Pennsylvania corporation; and ABFS Consolidated Holdings, Inc., a
Delaware corporation; each debtors in cases (the "CHAPTER 11 CASES") commenced
under Chapter 11 of Title 11 of the United States Code (the "BANKRUPTCY CODE")
in the United States Bankruptcy Court for the District of Delaware

                                       14

<PAGE>

(the "BANKRUPTCY COURT"), having retained possession of their assets and being
authorized under the Bankruptcy Code to continue the operation of their
businesses as debtors-in-possession.

        "AFFILIATE" shall mean, in relation to any specified person or entity,
(a) any other person or entity who, directly or indirectly, is in control of, or
controlled by, or is under common control with, such specified person or entity
or (b) any other person or entity who is a director, officer, employee, member
or general partner of (i) such specified person or entity or (ii) any such other
person or entity described in clause (a) above. For the purposes of this
definition, "CONTROL" of a person or entity means the power, direct or indirect,
(i) to vote more than 50% of the securities having ordinary voting power for the
election of directors of such person or entity or (ii) to direct or cause the
direction of the management and policies of such person or entity, whether by
contract or otherwise.

        "BUSINESS DAY" shall mean any day other than (i) a Saturday or Sunday,
(ii) a day on which the New York Stock Exchange, the Federal Reserve Bank of New
York, or banking and savings and loan institutions in the State of New York or
Connecticut or the City of New York are closed, or (iii) a day on which trading
in securities on the New York Stock Exchange or any other major securities
exchange in the United States is not conducted.

        "INTERIM DIP HEARING" shall mean an interim hearing to approve the DIP
Facility (as defined in the Order).

        "MARKET VALUE" shall mean the price at which the Purchased Security
could be sold in its entirety to a single third party purchaser, as determined
by the Buyer in its sole discretion exercised in good faith.

        "MATERIAL ADVERSE EFFECT" shall mean a material adverse effect on (a)
the business, assets, property, condition (financial or otherwise) or prospects
of Seller, (b) the ability of the Seller to perform its obligations under the
Repo Agreement or the Confirmation, (c) the validity or enforceability of the
Repo Agreement or the Confirmation, (d) the rights and remedies of the Buyer
under the Repo Agreement or the Confirmation, or (e) the Purchased Security.

        "OBLIGATION" shall mean (a) all of Seller's indebtedness, obligation to
pay the Repurchase Price on the Repurchase Date, and other obligations and
liabilities to Buyer or its Affiliates arising under, or in connection with, the
Transaction or the documents related thereto (the "TRANSACTION DOCUMENTS"),
whether now existing or hereafter arising; (b) any and all sums paid by Buyer or
on behalf of Buyer in order to preserve or protect the Purchased Security or its
interest therein; (c) in the event of any proceeding for the collection or
enforcement of any of Seller's indebtedness, obligations or liabilities referred
to in clause (a), the reasonable expenses of retaking, holding, collecting,
preparing for sale, selling or otherwise disposing of or realizing on the
Purchased Security, or of any exercise by Buyer of its rights under the related
agreements, including without limitation, reasonable attorneys' fees and
disbursements and court costs; and (d) all of Seller's indemnity obligations to
Buyer pursuant to the Transaction Documents.

        "ORDER" shall mean that certain ORDER APPROVING DEBTORS' EMERGENCY
MOTION FOR TRANSFERS OF CERTAIN PURCHASED ASSETS PURSUANT TO SECTIONS 105 & 363
OF THE BANKRUPTCY CODE, GRANT OF CERTAIN PRIORITY SECURITY INTERESTS AND
ALLOWANCE OF SUPERPRIORITY CLAIMS of the Bankruptcy Court approving the Repo
Agreement and this Confirmation.

III. EVENTS OF DEFAULT. The term "Event of Default" with respect to the Seller
shall include, in addition to the definition set forth in Paragraph 11 of the
Repo Agreement, the following events:

                                       15

<PAGE>

        1.      Any event shall occur which, in the sole good faith discretion
                of the Buyer, may have a Material Adverse Effect.
        2.      Any provision of the Order shall cease to be in full force and
                effect, or shall be reversed, stayed, modified, amended or
                appealed.
        3.      The Seller shall fail to comply with any term or condition of
                the Order.
        4.      The Interim DIP Hearing shall cease to be scheduled for a date
                on or before February 3, 2005.
        5.      The occurrence of any event of default under any other agreement
                entered into by the Seller or any of its Affiliates with the
                Buyer or any of its Affiliates.
        6.      Notwithstanding anything to the contrary in the Repo Agreement,
                the filing of the Chapter 11 Cases shall not be deemed to be an
                Event of Default.

IV. CONDITIONS PRECEDENT. Prior to entering into the initial Transaction under
this Agreement, Seller shall cause each of the following conditions to occur:

(a) The Transaction Documents shall be duly executed and delivered to the
parties thereto and be in full force and effect, free of modification, breach or
waiver.

(b) JPMorgan Chase, as designee of the Buyer, shall have received the Purchased
Security and all applicable transfer documentation, in form and substance
satisfactory to the Buyer.

(c) The Buyer shall have received satisfactory evidence of the entry of the
Order which Order (i) shall have been entered upon an application or motion of
the ABFS Debtors reasonably satisfactory in form and substance to the Buyer,
(ii) shall authorize the transactions hereunder, (iii) shall approve the payment
by the Seller of the Facility Fee referred to in Section VI hereof, (iv) shall
be in full force and effect, and (v) shall not have been vacated, stayed,
reversed, modified, amended or appealed in any respect.

(d) The Buyer shall have paid to the Seller the Facility Fee referred to in
Section VI hereof.

(e) The Bankruptcy Court shall have scheduled the Interim DIP Hearing for a date
on or before February 3, 2005.

(f) The Seller shall have complied with all terms and conditions of the Order.

(g) The Buyer shall have received an opinion from counsel to the Seller, in form
and substance satisfactory to the Buyer.

V. FEES AND DISBURSEMENTS; INDEMNIFICATION.

(a) Seller agrees to pay on demand (i) all reasonable out-of-pocket costs and
expenses of Buyer in connection with the preparation, execution, delivery,
administration, modification and amendment of this Agreement (including, without
limitation, (A) all due diligence, collateral review, syndication,
transportation, computer, duplication, appraisal, audit, insurance, consultant,
search, filing and recording fees and expenses and (B) the reasonable fees and
expenses of counsel for Buyer with respect thereto, with respect to advising
Buyer as to its rights and responsibilities, or the perfection, protection or
preservation of rights or interests, under this Agreement, with respect to
negotiations with Seller or with other creditors of Seller or any of its
subsidiaries arising out of any Event of Default or any events or circumstances
that may give rise to an Event of Default and with respect to presenting claims
in or otherwise participating in or monitoring any bankruptcy, insolvency or
other similar proceeding involving creditors' rights generally and any
proceeding ancillary thereto, in each case involving Seller), and (ii) all costs
and expenses of Buyer in connection with the enforcement of this Agreement,
whether in any action, suit or litigation, any bankruptcy, insolvency or other
similar proceeding affecting

                                       16
<PAGE>

creditors' rights generally (including, without limitation, the reasonable fees
and expenses of counsel for Buyer) whether or not the transactions contemplated
hereby are consummated.

(b) Seller agrees to indemnify and hold harmless Buyer and each of its
respective Affiliates and their officers, directors, employees, agents and
advisors (each, an "INDEMNIFIED PARTY") from and against (and will reimburse
each Indemnified Party as the same is incurred) any and all claims, damages,
losses, liabilities and expenses (including, without limitation, reasonable fees
and expenses of counsel) that may be incurred by or asserted or awarded against
any Indemnified Party, in each case arising out of or in connection with or by
reason of (including, without limitation, in connection with any investigation,
litigation or other proceeding (whether or not such Indemnified Party is a party
thereto) relating to, resulting from or arising out of any of the Transaction
Documents and all other documents related thereto, any breach of a
representation or warranty of Seller or Seller's officer in the Repo Agreement
as supplemented by this Confirmation or any other Transaction Document, and all
actions taken pursuant thereto) the Transactions, the actual or proposed use of
the proceeds of the Transactions, or any of the transactions contemplated
thereby, including, without limitation, any acquisition or proposed acquisition
or, except to the extent such claim, damage, loss, liability or expense is found
in a final, non-appealable judgment by a court of competent jurisdiction to have
resulted from such Indemnified Party's gross negligence or willful misconduct.
In the case of an investigation, litigation or other proceeding to which the
indemnity in this Section applies, such indemnity shall be effective whether or
not such investigation, litigation or proceeding is brought by Seller, its
members, or creditors or an Indemnified Party or any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated
hereby are consummated. Seller also agrees not to assert any claim against Buyer
or any of its Affiliates, or any of their respective officers, directors,
employees, attorneys and agents, on any theory of liability, for special,
indirect, consequential or punitive damages arising out of or otherwise relating
to the Transaction Documents, the actual or proposed use of the proceeds of the
Transactions, the Repo Agreement as supplemented by this Confirmation or any of
the transactions contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT
TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT
NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

VI. FACILITY FEE. The Seller shall pay to the Buyer a facility fee (the
"FACILITY FEE") equal to $500,000, which Facility Fee will be fully earned and
nonrefundable on the Purchase Date.

VII. GOVERNING LAW. THIS CONFIRMATION SHALL BE GOVERNED BY NEW YORK LAW WITHOUT
REFERENCE TO CHOICE OF LAW DOCTRINE (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

VIII. SUBMISSION TO JURISDICTION; WAIVERS. THE SELLER AND THE BUYER EACH HEREBY
IRREVOCABLY AND UNCONDITIONALLY: (A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THE REPO AGREEMENT AND THIS CONFIRMATION,
OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE
NON-EXCLUSIVE GENERAL JURISDICTION OF THE UNITED STATES BANKRUPTCY COURT FOR THE
DISTRICT OF DELAWARE AND APPELLATE COURTS THEREFROM OR THE COURTS OF THE STATE
OF NEW YORK, WITHIN THE COUNTY OF NEW YORK, IN THE EVENT THE FOREGOING COURTS
LACK OR DECLINE JURISDICTION; (B) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING
MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN
INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; (C) AGREES THAT
SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A
COPY THEREOF BY

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REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL),
POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH
OTHER ADDRESS OF WHICH THE BUYER SHALL HAVE BEEN NOTIFIED; AND (D) AGREES THAT
NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER
JURISDICTION.

IX. WAIVER OF JURY TRIAL. EACH OF THE SELLER AND THE BUYER HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE REPO
AGREEMENT, THIS CONFIRMATION OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

X. FURTHER ASSURANCES. The Seller agrees to do such further acts and things and
to execute and deliver to the Buyer such additional assignments,
acknowledgments, agreements, powers and instruments as are reasonably required
by the Buyer to carry into effect the purposes of the Repo Agreement and this
Confirmation, to perfect the interests of Buyer in the Collateral or to better
assure and confirm unto Buyer its rights, powers and remedies hereunder.

XI. OTHER.

        1.      The last sentence of Paragraph 3(b) of the Repo Agreement is
                hereby deleted in its entirety and replaced with the following:
                "In the event of any conflict between the terms of such
                Confirmation and this Agreement, such Confirmation shall
                prevail."

        2.      The Price Differential shall be payable on the Repurchase Date
                (the "PAYMENT DATE"). For purposes of Paragraph 5, an amount
                equivalent to all Income on the Purchased Security will be
                payable to Buyer and will be applied in the following order of
                priority: (a) to pay any Price Differential then due and owing
                under the Repo Agreement; (b) to pay to Buyer all other amounts
                due and owing under the Repo Agreement; and (c) the remainder,
                if any, to the Seller. Notwithstanding anything to the contrary
                contained herein or elsewhere, the parties hereto acknowledge
                and agree that to the extent Income on the Purchased Security is
                received on a day other than the Payment Date, the Buyer shall
                be entitled to hold such Income until the Payment Date, after
                which the Buyer shall apply such Income in accordance with the
                second sentence of this Section.

        3.      Section 4 of the Repo Agreement and all references to Margin
                Deficit or Margin Excess are hereby deleted in their entirety.

        4.      The following paragraph shall be added to Section 9 of the Repo
                Agreement: "(c) Notwithstanding anything to the contrary
                contained in the Agreement or elsewhere, Seller shall not have
                the right to substitute Securities for the Purchased Security
                without the express written consent of the Buyer."

        5.      The Buyer agrees that, following the exercise by the Buyer of
                remedies following the occurrence of an Event of Default, to the
                extent that the Buyer receives net proceeds from the sale of the
                Purchased Security in excess of the sum of (a) the Repurchase
                Price, (b) any other amounts owed by the Seller to the Buyer
                under the Repo Agreement and this Confirmation and (c) the
                obligations secured by the Clearwing Lien (as defined in the
                Order), after payment in full in cash of such obligations to the
                Buyer and Clearwing (as defined in the Order), the Buyer shall
                remit any remaining surplus to the Seller or to whomsoever shall
                be lawfully entitled thereto.

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        6.      Each of the parties hereto agrees that the Purchased Security
                shall be delivered to Buyer's Custodian, JPMorgan Chase Bank, at
                4 New York Plaza, Ground Level, New York, New York, 10004,
                Attention: Jennifer Jon, for the account of Greenwich Capital
                Financial Products, Inc., pursuant to delivery instructions
                provided by Buyer to Seller. The parties acknowledge that
                JPMorgan Chase Bank is a "financial institution" as defined in
                Section 101(22) of the United States Bankruptcy Code, as
                amended.

        7.      This Confirmation may be executed in any number of counterparts,
                each of which shall be deemed to be an original, and all of
                which taken together shall constitute but one and the same
                instrument.

        8.      This Agreement shall be binding upon and inure to the benefit of
                the respective successors and assigns of the Seller and the
                Buyer; PROVIDED that neither Seller nor any ABFS Debtor shall
                assign or transfer any of its rights or obligations hereunder
                without the prior written consent of Buyer.

                                    * * * * *

                                       19

<PAGE>

Agreed:                                         Agreed:

AMERICAN BUSINESS CREDIT, INC., as Seller       GREENWICH CAPITAL FINANCIAL
                                                PRODUCTS, INC., as Buyer

By: /s/ Stephen M. Giroux                       By: /s/ Dominic Bastich
    ---------------------                           -------------------
    Name: Stephen M. Giroux                         Name:  Dominic Bastich
    Title: Executive Vice President and             Title: Senior Vice President
           General Counsel

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