Document:

EXHIBIT 4.3

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                     SUBSEQUENT CONTRACT TRANSFER AGREEMENT

                                     between

                           DVI RECEIVABLES CORP. XIX,
                                   as Company

                                       and

                          DVI RECEIVABLES XIX, L.L.C.,
                                    as Issuer

                             Dated as of May 1, 2003

ALL RIGHTS IN AND TO THIS AGREEMENT ON THE PART OF DVI RECEIVABLES XIX, L.L.C.
HAVE BEEN ASSIGNED AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF U.S. BANK
NATIONAL ASSOCIATION, AS TRUSTEE, UNDER THE INDENTURE DATED AS OF MAY 1, 2003
FOR THE BENEFIT OF THE PERSONS REFERRED TO THEREIN.

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<TABLE>
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                                                TABLE OF CONTENTS

                                                                                                               PAGE
<S>                                                                                                            <C>

                                                    ARTICLE I

                                                   DEFINITIONS

Section  1.01       Definitions...................................................................................1

                                                    ARTICLE II

                                  PROCEDURES FOR PURCHASES OF ELIGIBLE CONTRACTS

Section  2.01       Transfer......................................................................................2
Section  2.02       Substitute Contracts..........................................................................2
Section  2.03       Intent of Parties; Security Interest..........................................................3
Section  2.04       Obligations to Transfer Certain Collections...................................................3
Section  2.05       Grant Of Security Interest....................................................................3

                                                   ARTICLE III

                             REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY

Section  3.01       Organization and Good Standing................................................................6
Section  3.02       Authorization.................................................................................6
Section  3.03       Binding Obligation............................................................................6
Section  3.04       No Violation..................................................................................7
Section  3.05       No Proceedings................................................................................7
Section  3.06       Approvals.....................................................................................7
Section  3.07       Ability to Perform............................................................................7
Section  3.08       Equipment and Contracts.......................................................................7
Section  3.09       Principal Executive Office; Legal Name........................................................8
Section  3.10       No Prior Assignments..........................................................................8
Section  3.11       Valid Sale; Fair Consideration................................................................8
Section  3.12       Nonconsolidation..............................................................................9
Section  3.13       Ordinary Course; No Insolvency...............................................................10
Section  3.14       Assets and Liabilities.......................................................................10
Section  3.15       Transfer Taxes...............................................................................10
Section  3.16       Ability to Pay Debts.........................................................................10
Section  3.17       Bulk Transfer Provisions.....................................................................11

                                                    ARTICLE IV

                                              CONDITIONS TO PURCHASE

Section  4.01       Representations and Warranties...............................................................11

                                                        i

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                                                TABLE OF CONTENTS
                                                   (continued)

                                                                                                               PAGE

                                                    ARTICLE V

                                         FURTHER COVENANTS OF THE COMPANY

Section  5.01       Books and Records............................................................................11
Section  5.02       Preservation of Office.......................................................................11
Section  5.03       Liens........................................................................................12
Section  5.04       No Bankruptcy Petition Against the Issuer or Managing Member.................................12
Section  5.05       Protection of Right, Title and Interest......................................................12

                                                    ARTICLE VI

                                   REPRESENTATIONS AND COVENANTS OF THE ISSUER

Section  6.01       Nonconsolidation.............................................................................13
Section  6.02       No Bankruptcy Petition Against the Company...................................................14

                                                   ARTICLE VII

                                                   SUBSTITUTION

Section  7.01       Substitution.................................................................................14
Section  7.02       Notice of Substitution.......................................................................15
Section  7.03       Contributor's and Company's Subsequent Obligations...........................................15
Section  7.04       Usage Of Predecessor Contracts In Calculation................................................15

                                                   ARTICLE VIII

                                                  MISCELLANEOUS

Section  8.01       Amendment....................................................................................15
Section  8.02       Effect of Invalidity of Provisions...........................................................16
Section  8.03       Notices......................................................................................16
Section  8.04       Entire Agreement.............................................................................17
Section  8.05       Survival.....................................................................................17
Section  8.06       Consent to Service...........................................................................17
Section  8.07       Jurisdiction Not Exclusive...................................................................17
Section  8.08       Construction.................................................................................17
Section  8.09       Further Assurances...........................................................................18
Section  8.10       Third Party Beneficiaries....................................................................18
Section  8.11       Governing Law................................................................................18
Section  8.12       Consent to Jurisdiction; Waiver of Objection to Venue........................................18
Section  8.13       Waiver of Jury Trial.........................................................................19
Section  8.14       Headings and Cross-References................................................................19

                                                       ii

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                                                TABLE OF CONTENTS
                                                   (continued)

                                                                                                               PAGE

Section  8.15       Costs and Expenses...........................................................................19
Section  8.16       Confidential Information.....................................................................19
Section  8.17       Statutory References.........................................................................19
Section  8.18       Execution in Counterparts....................................................................20
Section  8.19       Power of Attorney............................................................................20
</TABLE>

                                                       iii

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         SUBSEQUENT CONTRACT TRANSFER AGREEMENT ("AGREEMENT") dated as of May 1,
2003, between DVI RECEIVABLES XIX, L.L.C., a Delaware limited liability company
(the "ISSUER"), and DVI RECEIVABLES CORP. XIX, a Delaware corporation (the
"COMPANY").

         WHEREAS, the Company will from time to time acquire certain Contracts
and other Contributed Property related thereto pursuant to the Contribution and
Servicing Agreement, dated as of the date hereof, between the Company and DVI
Financial Services Inc. (the "CONTRIBUTOR"), and the Company will acquire from
DVI Receivables Corp. XV ("DVI CORP. XV") pursuant to a Sale Agreement (the "DVI
XV SALE AGREEMENT"), dated as of the date hereof, among the Company, the Issuer,
DVI, DVI Receivables Corp. XV and DVI Receivables XV, L.L.C. ("DVI RECEIVABLES
XV") the Sold Company Assets (as defined in the DVI XV Sale Agreement), and the
Company will acquire from DVI Funding Corporation ("DFC") and pursuant to a Sale
Agreement (the "FUNDING SALE AGREEMENT"), dated as of the date hereof, among the
Company, DVI, the Issuer, DFC and DVI Funding, L.L.C. ("DVI FUNDING L.L.C.") the
Sold Company Assets (as defined in the Funding Sale Agreement).

         WHEREAS, the Company desires to transfer to Issuer all Contributed
Property (other than any ownership interest in Equipment) which it acquires from
the Contributor and certain other assets, and Issuer desires to purchase such
Contributed Property and other assets, in each instance in accordance with the
terms and conditions set forth in this Agreement.

         WHEREAS, pursuant to the Indenture (the "INDENTURE"), dated as of the
date hereof, by and between the Issuer and U.S. BANK NATIONAL ASSOCIATION (the
"TRUSTEE"), the Issuer intends to issue its Series 2003-1 Notes, which will be
collateralized by a pledge by the Issuer to the Trustee, on behalf of the
Noteholders and the Swap Providers, of all of the Issuer's right, title and
interest in, to and under the Trust Property.

         WHEREAS, to facilitate the issuance of its Series 2003-1 Notes, the
Issuer and the Company desire to enter into this Agreement.

         NOW, THEREFORE, the parties, in consideration of good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, hereby agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

         Section 1.01 DEFINITIONS.

         For purposes of this Agreement, capitalized terms used herein but not
otherwise defined shall have the respective meanings assigned to such terms in
Appendix I to the Contribution and Servicing Agreement.

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                                   ARTICLE II

                 PROCEDURES FOR PURCHASES OF ELIGIBLE CONTRACTS

         Section 2.01 TRANSFER.

         (a) CONVEYANCE. Upon the terms and conditions herein set forth, in
exchange for cash consideration received therefor and for other good and
valuable consideration, the Company hereby transfers, pledges, assigns and sells
to the Issuer on each Contribution Date (or, in the case of any Substitute
Contracts the related Substitution Date), without recourse except as set forth
herein, all of the Company's right, title and interest in and to the Company
Assets as set forth on the related Subsequent Contract Transfer Form. All funds
received by the Company on or in connection with the Company Assets on and after
the applicable Cut-off Date shall be received, held and applied by the Company
in trust for the benefit of the Issuer as owner of the Contracts and the other
Company Assets.

         (b) After giving effect to such transfer and sale, the ownership of
each such Contract and the other Company Assets transferred on the related
Contribution Date shall be vested in the Issuer. On each Contribution Date, the
Contract Files and any other documents relating to each Contract and the other
Company Assets shall be delivered to the Trustee and at all times held in trust
by the Trustee for the benefit of the Noteholders and the Swap Providers
pursuant to the terms of the Indenture. The Company agrees to take no action
inconsistent with the ownership of any Contract or the other Company Assets, to
promptly indicate to all parties with a valid interest inquiring as to the true
ownership of each Contract, that each Contract and the other Company Assets have
been transferred, assigned and sold to the Issuer and to claim no ownership
interest in any such Contracts and the other Company Assets.

         (c) Any Company Assets transferred by the Contributor to the Company
from time to time shall forthwith be transferred to the Issuer without further
act, notwithstanding the delivery of any Subsequent Contract Transfer Forms in
respect thereof.

         Section 2.02 SUBSTITUTE CONTRACTS.

         (a) In consideration for the transfer by the Issuer to the Company of
any Predecessor Contract transferred to the Company by the Issuer in accordance
with the terms and conditions of Section 7 of the Contribution and Servicing
Agreement, the Company shall transfer to the Issuer on the Substitution Date
related thereto, and the Issuer shall accept, a Substitute Contract; provided
that such Substitute Contract is in accordance with the terms and conditions of
the Contribution and Servicing Agreement.

         (b) With respect to all Predecessor Contracts and the ownership or the
security interest (as the case maybe) in the related Equipment purchased or
replaced by the Contributor pursuant to Section 5 or Section 7 of the
Contribution and Servicing Agreement, the Issuer shall deliver to the Company an
instrument substantially in the form of Exhibit B hereto, assigning to the
Company, without recourse, representation or warranty (except as to the absence
of liens, claims, or encumbrances resulting from actions taken, or failed to be
taken, by the Issuer), all of the Issuer's right, title and interest in and to
such Predecessor Contracts and the ownership or the

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security interest (as the case may be) in the related Equipment, and all
security and documents relating thereto.

         Section 2.03 INTENT OF PARTIES; SECURITY INTEREST.

         The Issuer and the Company hereby confirm that the transactions
contemplated in this Agreement are intended as transfers, assignments,
conveyances and sales rather than as loan transactions. In the event, for any
reason, and solely in such event, any transaction hereunder is construed by any
court or regulatory authority as a loan or other than a transfer, assignment,
conveyance and sale of any or all Company Assets, then the Company shall be
deemed to have hereby pledged to the Issuer as security for the performance by
the Company of all of its obligations from time to time arising hereunder and
with respect to any and all purchases effected pursuant hereto, and shall be
deemed to have either assigned or granted to the Issuer a first priority
perfected (except Equipment for which the Original Equipment Cost is less than
$25,000, in which case, the Company shall be deemed to have granted a valid
security interest) security interest in all of the Company Assets. In
furtherance of the foregoing, (i) this Agreement shall constitute a security
agreement, (ii) the Trustee shall be deemed to be a bailee for purposes of
perfection of the security interest granted to Issuer (and its assigns), (iii)
the Issuer shall have all of the rights of a secured party with respect to the
Company Assets pursuant to applicable law and (iv) in the manner consistent with
this Agreement, the Company shall execute all documents, including, but not
limited to, UCC financing statements, to effectively perfect and evidence
Issuer's first priority security interest in the Company Assets except that UCC
financing statements need not be filed with respect to Equipment for which the
Original Equipment Cost is less than $25,000. The Company also covenants not to
pledge, assign or grant any security interest to any other party in any of the
Company Assets. The consideration received and to be received by the Company in
exchange for the transfer, assignment and conveyance of the Company Assets is
intended to be fair consideration having value equivalent to or in excess of the
value of the assets being transferred by the Company.

         Section 2.04 OBLIGATIONS TO TRANSFER CERTAIN COLLECTIONS. The Company
shall cause the Servicer to pay to the Issuer, by deposit into the Collection
Account within two (2) business days after receipt thereof, any and all payments
and other amounts (other than Purchase Option Payments, any Excluded Amounts and
any other payments not included in the determination of Discounted Contract
Balance with respect to the related Contract as such Balance is set forth in the
related Contract Schedule), if any, received by or on behalf of the Company in
respect of any Equipment owned by the Transferor following or as a result of any
default or early termination under the related Contract.

         Section 2.05 GRANT OF SECURITY INTEREST.

         (a) To secure the timely payment of all obligations owing by the
Company and the performance and observance of all the obligations and
liabilities of the Company contained in this Agreement and the other Transaction
Documents (collectively, the "COMPANY OBLIGATIONS"), the Company hereby conveys,
warrants, assigns, transfers, pledges and grants a security interest unto (all
of the following are collectively, the "COMPANY COLLATERAL") (i) the Trustee,
for the benefit and security of the Issuer, all of the Company's right, title
and interest in and to all Equipment of the Company subject to certificates of
title or similar evidences of ownership, and

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all proceeds thereof, and (ii) the Issuer, all of the Company's right, title and
interest in and to all Equipment of the Company, including all proceeds thereof.

         (b) This Agreement shall create a continuing security interest in the
Company Collateral and shall:

                  (i) remain in full force and effect until payment in full and
         performance of all Company Obligations;

                  (ii) be binding upon the Company and its successors,
         transferees and assigns (except with respect to Company Collateral as
         to which the Issuer, pursuant to Section 2.05(d) or 2.05(e) or with the
         prior written consent of the Trustee, or the Trustee shall have
         released its security interest therein); and

                  (iii) inure, together with the rights and remedies of the
         Issuer hereunder, to the benefit of the Issuer and its successors and
         assigns.

         (c) Upon the payment in full and performance of all Company
Obligations, the security interest granted herein shall, immediately and without
further action, terminate and be released and all rights to the Company
Collateral shall revert to the Company. Upon any such termination and release,
the Issuer and the Trustee will, at the Company's sole expense, deliver to the
Company all certificates and instruments representing or evidencing any Company
Collateral, and execute and deliver to the Company such documents as the Company
shall reasonably request to evidence such termination and release.

         (d) In the event that (i) the Contributor or the Servicer shall have
substituted a Substitute Contract and an ownership interest or security interest
(as the case may be) in the Equipment subject thereto for a Predecessor Contract
and an ownership interest of security interest (as the case may be) in the
Equipment subject thereto in accordance with the Contribution and Servicing
Agreement, or (ii) the Contributor or the Servicer shall have repurchased a
Contract and an ownership interest or security interest (as the case may be) in
the related Equipment in accordance with the Contribution and Servicing
Agreement, the Predecessor Contract or the repurchased Contract, as applicable,
and the ownership interest or security interest (as the case may be) in the
Equipment subject thereto, shall be released from the ownership interest or
security interest (as the case may be) granted hereunder when the Trustee shall
have (i) in the case of the repurchase of a Contract, deposited in the
Collection Account all amounts received in accordance with the section of the
Contribution and Servicing Agreement pursuant to which such Contract is
purchased, (ii) in the case of a Substitute Contract, received a fully executed
original of the Substitute Contract Transfer Form and the Contract File with
respect to such Substitute Contract plus any cash amount delivered as provided
in the section of the Contribution and Servicing Agreement pursuant to which
such Contract is substituted and (iii) delivered to the Contributor or the
Servicer, as the case may be, acknowledgment of its receipt of the related
Contract Files. If there are such unreimbursed amounts, any proceeds received
with respect to such Predecessor Contract or repurchased Contract, as
applicable, and the security interest in the related Equipment shall be applied
hereunder only to the extent necessary to reimburse the Collection Account for
such amounts drawn thereon and the balance of such proceeds, if any, shall be
paid to, or as directed by, the Contributor.

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         (e) In the event that the Trustee shall have received written
certification from an Authorized Officer of the Servicer that the Trustee has
received from amounts paid by the Obligor or from the proceeds of the Equipment
subject to any Contract (i) the final Contract Payment due and payable under any
Contractor or (ii) a Prepayment Amount in respect of any Contract and, following
such final Contract Payment or Prepayment Amount, no further payments on, or in
respect of, such Contract are or will be due and payable, such Contract and the
Equipment subject thereto shall be released from the security interest granted
hereunder.

         (f) The Issuer and the Trustee shall promptly execute and deliver such
documents (which shall be furnished to the Issuer and the Trustee by the
Company) and take such other actions as the Company may reasonably request to
fully effectuate (i) the release from the security interest granted hereunder
relating to Equipment (and proceeds thereof) required to be so released pursuant
to this Section 2.05 together with (ii) the release of any interest the Issuer
or Trustee may have in the related Contract and any income, payments and
proceeds thereof.

         Section 2.06 RATING AGENCY SECURITY INTEREST REPRESENTATIONS.

         (a) This Agreement creates a valid and continuing security interest (as
defined in the applicable UCC) in the Company Collateral in favor of the
Trustee, which security interest, except as contemplated by the Transaction
Documents, is prior to all other liens and is enforceable as against creditors
of and purchasers from the Company.

         (b) An original executed copy of each Transaction Document and all
originals of the related chattel paper or instruments that constitute or
evidence the Company Assets (or, if the original chattel paper or instrument
constituting such item of Company Assets does not exist, then a certified true
copy) have been delivered to the Trustee.

         (c) The Company has caused the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under
applicable law in order to perfect the security interest in the Company
Collateral Granted to the Trustee.

         (d) Except as contemplated by the Transaction Documents, the Company
has not (1) pledged, assigned, sold, granted a security interest in, or
otherwise conveyed any of the Company Collateral or (2) authorized the filing of
and is not aware of any financing statements against the Company that include a
description of collateral covering the Company Collateral other than any
financing statement (i) relating to the security interest granted to the Trustee
in this Agreement and which names the Trustee as secured party or assignee of
the secured party, or (ii) that has been terminated. The Company is not aware of
any judgment or tax lien filings against the Company.

         (e) None of the Transaction Documents and the Contracts transferred
hereunder have any marks or notations indicating that they have been pledged,
assigned or otherwise conveyed to any Person other than the Trustee. With
respect to all Contracts constituting chattel paper, the Company has, or has
caused to be taken, such steps as are necessary to protect the Company or the
Issuer's interest in any related Equipment securing such chattel paper.

         (f) The Company has good and marketable title to (1) the Contract(s)
transferred on the Contribution Date and (2) the security interest assigned or
granted, as the case may be, in the

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Equipment related thereto (except for Equipment for which the Original Equipment
Cost is less than $25,000, with respect to which the Company shall be deemed to
have granted a valid security interest), in each case free and clear of any and
all claims, charges, liens or security interests created by the Company or any
of its affiliates (other than the rights of each Obligor under the Contract to
which such Obligor is a party, claims, charges, liens or security interests to
be discharged on the Contribution Date related thereto and any liens for taxes,
assessments, and (x) governmental charges or levies not yet due and payable and
(y) liens imposed by law arising in the ordinary course of business which secure
obligations that are not yet due and payable, in the case of (x) and (y) to the
extent no enforcement, collection, execution, levy or foreclosure proceeding
shall have been commenced).

                                  ARTICLE III

            REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY

         The Company hereby makes the following representations and warranties
for the benefit of the Issuer, the Trustee, the Swap Providers and the
Noteholders on which the Issuer relies in purchasing and otherwise acquiring the
Company Assets, on which the Swap Providers rely in entering into the Swap
Agreement with the Issuer and on which the Noteholders rely in funding advances
under their respective Notes. Other than as set forth in Section 3.08 hereof,
such representations and warranties are and will be true and correct as of the
Closing Date and as of each Contribution Date or Substitution Date, as the case
may be (unless an earlier date is specified therein) and shall survive each
transfer, assignment, conveyance and sale to the Issuer of the Company Assets
and the subsequent pledge thereof by the Issuer pursuant to the Indenture.

         Section 3.01 ORGANIZATION AND GOOD STANDING.

         The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware.

         Section 3.02 AUTHORIZATION.

         The Company has all requisite power and authority and all necessary
licenses and permits to enter into and perform its obligations under this
Agreement and each Subsequent Contract Transfer Form (each, an "SCTF") and the
transactions contemplated hereby and thereby, and the execution, delivery, and
performance of this Agreement and each SCTF, have been duly authorized by the
Company by all necessary corporate action.

         Section 3.03 BINDING OBLIGATION.

         This Agreement has been, and each SCTF will be, duly and validly
executed and delivered by the Company and will constitute a legal, valid and
binding obligation of the Company, enforceable against the Company in accordance
with its respective terms, subject to bankruptcy, insolvency and other laws of
general application affecting the rights of creditors and equitable principles
(whether considered in a proceeding at law or in equity).

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         Section 3.04 NO VIOLATION.

         The consummation of the transactions contemplated by this Agreement and
each SCTF and the fulfillment of the terms thereof, will not conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice, lapse of time or both) a default under the certificate of
incorporation or bylaws of the Company, or any indenture, agreement, mortgage,
deed of trust or other instrument to which the Company is a party or by which it
is bound, or result in the creation or imposition of any lien upon any of its
properties pursuant to the terms of such indenture, agreement, mortgage, deed of
trust or other such instrument, other than this Agreement, or violate any law,
or, to the best of the Company's knowledge, any order, rule or regulation
applicable to it of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Company or any of its properties.

         Section 3.05 NO PROCEEDINGS.

         There are no injunctions, writs, actions, suits, restraining orders or
other orders of any nature, and there are no actions, suits, proceedings or
investigations to which the Company is a party pending or, to the knowledge of
the Company, threatened, before any court, government authority or agency or
arbitration board or tribunal (A) asserting the invalidity of this Agreement or
any SCTF, (B) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or any SCTF or (C) seeking any determination or
ruling that would materially and adversely affect the performance by the Company
of its obligations under, or the validity or enforceability of this Agreement or
any SCTF.

         Section 3.06 APPROVALS.

         All approvals, authorizations, consents, orders or other actions of any
person, corporation or other organization, or of any court, governmental agency
or body or official, required in connection with the execution and delivery of,
and compliance with the terms of, this Agreement or any SCTF, have been or will
be taken or obtained on or prior to the related Contribution Date.

         Section 3.07 ABILITY TO PERFORM.

         The Company has the ability to perform all of its obligations under
this Agreement, any SCTF and the Contribution and Servicing Agreement.

         Section 3.08 EQUIPMENT AND CONTRACTS.

         With respect to each Contract, the Company hereby represents and
warrants to the Issuer, as of each Contribution Date that:

         (a) the sale to the Issuer of the Company's interest in such
Contract(s) transferred on such date and the assignment of the Company's
security interest, or grant of a first priority perfected security interest, as
the case may be, in the Equipment related thereto pursuant to Section 2.01,
Section 2.02 or Section 2.05 hereof constitutes a valid transfer of all of the
Company's right, title and interest in such Company Assets or a grant of a
first-priority perfected (except for Equipment for which the Original Equipment
Cost is less than $25,000, with respect

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to which the Company shall be deemed to have granted a valid security interest)
security interest therein from the Company in favor of the Issuer, free and
clear of any and all claims, charges, liens or security interests created by the
Company or any of its affiliates (other than the rights of each Obligor under
the Contract to which such Obligor is a party, claims, charges, liens or
security interests to be discharged on the Contribution Date related thereto and
any liens for taxes, assessments, and (x) governmental charges or levies not yet
due and payable and (y) liens imposed by law arising in the ordinary course of
business which secure obligations that are not yet due and payable, in the case
of (x) and (y) to the extent no enforcement, collection, execution, levy or
foreclosure proceeding shall have been commenced);

         (b) the Company did not, in the exercise of its interest in any such
Company Assets waive, discharge, release or otherwise permit any modification
thereto not in effect or agreed to at the time the Company acquired its interest
therein; and

         (c) notwithstanding the foregoing clauses (a) and (b), the Company
makes no representation or warranty with respect to claims, charges, liens or
security interests created, or waivers, discharges, releases or modifications
made, by the Contributor.

         The representations and warranties described in this Section 3.08 shall
survive the conveyance of the Company Assets to the Issuer.

         Section 3.09 PRINCIPAL EXECUTIVE OFFICE; LEGAL NAME.

         The principal executive office of the Company is located at 2500 York
Road, Jamison, PA 18929, and has been located in the same county and state for
at least four months immediately preceding the Closing Date. The Company has no
trade names, fictitious names, assumed names or "doing business as" names, and
at all times has been organized under the laws of the State of Delaware. If (i)
any change in either the Company's name, structure or the location of its
principal place of business or chief executive office occurs, then the Company
shall deliver thirty (30) days' prior written notice of such change or
relocation to the Swap Providers, the Issuer and the Trustee and (ii) if the
Company becomes aware of the change in location of any equipment, then, no later
than sixty (60) days after the effective date of such change or relocation, the
Company shall file such amendments or statements as may be required to preserve
and protect the Issuer's and the Trustee's interest in the Contracts, the
Equipment and the other Trust Property. The Company shall pay all filing fees or
taxes payable in respect of any UCC financing or continuation statements
required to be filed pursuant to Section 1.03 of the Contribution and Servicing
Agreement and not paid by the Contributor.

         Section 3.10 NO PRIOR ASSIGNMENTS.

         Except as permitted by the Transaction Documents, the Company has not
pledged, assigned or encumbered or terminated, in whole or in part, any of the
Company Assets.

         Section 3.11 VALID SALE; FAIR CONSIDERATION.

         This Agreement effects a valid assignment, transfer and conveyance of
the Company's interest in the Company Assets to the Issuer, enforceable against
creditors of the Company. The

                                       8
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consideration received by the Company upon the sale of the Company Assets to the
Issuer is fair consideration having value equivalent to or in excess of the
value for such Company Assets.

         Section 3.12 NONCONSOLIDATION.

         The Company is operated in such a manner that it would not be
substantively consolidated with Contributor, such that the separate existence of
the Company and Contributor would not be disregarded in the event of a
bankruptcy or insolvency of the Company or Contributor, and in such regard,
among other things:

         (a) the Company is not involved in the day to day management of
Contributor;

         (b) the Company maintains separate corporate records and books of
account from Contributor and otherwise observes corporate formalities and has a
separate business office from Contributor (which may be at the same address as
the Contributor, provided that the Company and Contributor have entered into a
written agreement specifying a reasonable allocation of expenses with respect to
overhead and other shared costs with respect to such premises or a lease
agreement);

         (c) the financial statements and books and records of the Company
prepared after the date of creation of the Company reflect and will reflect the
separate existence of Contributor;

         (d) the Company maintains its assets separately from the assets of
Contributor (including through the maintenance of a separate bank account), the
Company's funds and assets, and records relating thereto, have not been and are
not commingled with those of Contributor and the separate creditors of
Contributor will be entitled to be satisfied out of Contributor's assets prior
to any value in Contributor becoming available to Contributor's equityholders or
the Company's creditors;

         (e) all business correspondence of the Company and other communications
are conducted in the Company's own name and on its own stationery;

         (f) Contributor does not act as an agent of the Company in any capacity
and the Company does not act as agent for Contributor, but instead presents
itself to the public as a corporation separate from Contributor, provided that
Contributor is the Servicer under the Contribution and Servicing Agreement;

         (g) the Company has caused its accounting records to be clearly and
unambiguously marked to show that each Contract has been transferred by the
Company to the Issuer and pledged by the Issuer to the Trustee for the benefit
of the Noteholders and the Swap Providers;

         (h) the Company will at all times maintain two Independent Directors
(as such term is defined in the certificate of incorporation of the Company);
and

         (i) except as contemplated by the Transaction Documents and its
certificate of incorporation (including, without limitation, any assets that may
be distributed to it pursuant to the Transaction Documents or any Predecessor
Contract and its related Equipment), the assets of the Company shall be the
Company Assets and the Company shall take such actions as may be

                                       9
<PAGE>

necessary or advisable to effect the transfers contemplated hereby and protect
the validity of any security interest granted hereunder.

         Section 3.13 ORDINARY COURSE; NO INSOLVENCY.

         The transactions contemplated by this Agreement are being consummated
by the Company and the Issuer, respectively, in furtherance of the Company's
ordinary business purposes and constitute a practical and reasonable course of
action by the Company designed to improve the financial position of the Company
with no contemplation of insolvency and with no intent to hinder, delay or
defraud any of its present or future creditors. Neither as a result of the
transactions contemplated by this Agreement, nor immediately before or after
such transactions, will the Company be insolvent, and the Company has adequate
capital for the conduct of its business and the payment of anticipated
obligations.

         Section 3.14 ASSETS AND LIABILITIES.

         (a) Both immediately before and after the assignment, transfer and
conveyance of Contracts (including the right to receive all payments due or to
become due thereunder) and the other Company Assets, the present fair salable
value of the Company's assets will be in excess of the amount that will be
required to pay the Company's probable liabilities as they then exist and as
they become absolute and matured.

         (b) Both immediately before and after the assignment and transfer of
Contracts and the other Company Assets, the sum of the Company's assets will be
greater than the sum of the Company's debts, valuing the Company's assets at a
fair salable value.

         Section 3.15 TRANSFER TAXES.

         No transfer, assignment or conveyance of Company Assets contemplated by
this Agreement is subject to or will result in any tax, fee or governmental
charge payable by the Company or the Issuer to any federal, state or local
government ("TRANSFER TAXES"). In the event that the Company or the Issuer
receives actual notice of any Transfer Taxes arising out of the transfer,
assignment and conveyance of any Company Assets, on written demand by the
Issuer, or upon the Company otherwise being given notice thereof, the Company
shall pay, and otherwise indemnify and hold the Issuer, the Trustee and the
holders of the Notes harmless, on an after-tax basis, from and against any and
all such Transfer Taxes (it being understood that neither the holders of the
Notes nor the Trustee shall have any obligation to pay such Transfer Taxes).

         Section 3.16 ABILITY TO PAY DEBTS.

         Neither as a result of the transactions contemplated by this Agreement
nor otherwise does the Company believe that it will incur debts beyond its
ability to pay or which would be prohibited by its charter documents or by-laws.
The Company's assets and cash flow enable it to meet its present obligations in
the ordinary course of business as they become due.

                                       10
<PAGE>

         Section 3.17 BULK TRANSFER PROVISIONS.

         No transfer, assignment or conveyance of Contracts or the other Company
Assets by the Company to the Issuer contemplated by this Agreement will be
subject to the bulk transfer or any similar statutory provisions in effect in
any applicable jurisdiction.

                                   ARTICLE IV

                             CONDITIONS TO PURCHASE

         Section 4.01 REPRESENTATIONS AND WARRANTIES.

         The obligation of the Issuer to purchase any Contracts on the Closing
Date and each Contribution Date is subject to receipt by the Issuer of the
following:

         (a) an Officer's Certificate from the Company to the effect that, on or
before such Contribution Date (after giving effect to the sale of the Subsequent
Contracts on such date), all representations and warranties of the Company
contained herein shall be true and correct in all respects, with respect to each
Contract individually and all Contracts in the aggregate, with the same force
and effect as though such representations and warranties had been made on and as
of such date (unless such representations and warranties specifically relate to
an earlier date); and

         (b) an Officer's Certificate from the Contributor to the effect that,
on or before such Contribution Date (after giving effect to the sale of
Subsequent Contracts on such date), all representations and warranties of the
Contributor contained in Section 2 of the Contribution and Servicing Agreement
shall be true and correct in all respects, with respect to each Contract
individually and all Contracts in the aggregate as stated therein, with the same
force and effect as though such representations and warranties had been made on
and as of such date (unless such representations and warranties specifically
relate to an earlier date).

                                   ARTICLE V

                        FURTHER COVENANTS OF THE COMPANY

         So long as this Agreement remains in effect or the Company shall have
any obligations hereunder, the Company hereby covenants and agrees with the
Issuer as follows:

         Section 5.01 BOOKS AND RECORDS.

         The Company will clearly mark its books and records to reflect each
sale to the Issuer of all Company Assets and to show that the Issuer owns the
Company Assets absolutely.

         Section 5.02 PRESERVATION OF OFFICE.

         The Company will give the Issuer, the Swap Providers, each Noteholder
and the Trustee prior written notice of any relocation of its principal
executive office if, as a result of such relocation, the applicable provisions
of the UCC would require the filing of any amendment of any previously filed
financing or continuation statement or of any new financing statement.

                                       11
<PAGE>

         Section 5.03 LIENS.

         The Company shall defend the right, title and interest of the Issuer in
the Company Assets against all claims of third parties claiming through or under
the Company (excluding claims arising from actions of the Contributor, in its
capacity as Servicer under the Contribution and Servicing Agreement, or any
agent of Contributor as such Servicer).

         Section 5.04 NO BANKRUPTCY PETITION AGAINST THE ISSUER OR MANAGING
                      MEMBER.

         The Company covenants and agrees it will not, prior to the date that is
one year and one day after the payment in full of all amounts owing pursuant to
the Transaction Documents, institute against, or join any other Person in
instituting against, any of the Issuer or the Managing Member, any bankruptcy,
reorganization, receivership, arrangement, insolvency or liquidation proceedings
or other similar proceedings under any federal or state bankruptcy or similar
law. This Section 5.04 shall survive the termination of this Agreement.

         Section 5.05 PROTECTION OF RIGHT, TITLE AND INTEREST.

         (a) The Company shall not change its name, identity, or corporate
structure in any manner that would, could, or might make any UCC financing
statement or continuation statement filed by the Contributor in accordance with
Section 1.01(c) of the Contribution and Servicing Agreement seriously misleading
within the meaning of Section 9-506 of the UCC, unless it shall have given the
Issuer and the Trustee at least thirty (30) days' prior written notice thereof
and shall promptly file appropriate amendments to all previously filed UCC
financing statements or continuation statements.

         (b) If at any time the Company shall propose to sell, grant a security
interest in or otherwise transfer any interest in contracts to any prospective
lender, or other transferee, the Company shall give to such prospective lender,
or other transferee, computer tapes, records, or print-outs (including any
restored from archives) that, if they shall refer in any manner whatsoever to
any Contract, shall indicate clearly that all right, title and interest in such
Contract (other than the Company's Retained Interest) have been sold to the
Issuer and pledged by the Issuer to the Trustee for the benefit of the
Noteholders and the Swap Providers.

         (c) The Company shall not amend its certificate of incorporation unless
it shall have received a written confirmation from the Rating Agencies stating
that such amendment will not result in a Ratings Effect with respect to any
class of Notes.

                                   ARTICLE VI

             REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE ISSUER

         The Issuer hereby represents and warrants to the Company as of the
Closing Date and as of each Contribution Date:

                                       12
<PAGE>

         Section 6.01 NONCONSOLIDATION.

         The Issuer is operated in such a manner that it would not be
substantively consolidated with Contributor, such that the separate existence of
the Issuer and Contributor would not be disregarded in the event of a bankruptcy
or insolvency of the Issuer or Contributor, and in such regard, among other
things:

         (a) the Issuer is not involved in the day to day management of
Contributor;

         (b) the Issuer maintains separate company records and books of account
from Contributor and otherwise observes company formalities and has a separate
business office from the Contributor (which may be at the same address as the
Contributor, provided that the Issuer and the Contributor have entered into a
written agreement specifying a reasonable allocation of expenses with respect to
overhead and other shared costs with respect to such premises or a lease
agreement);

         (c) the financial statements and books and records of the Issuer
prepared after the date of creation of the Issuer reflect and will reflect the
separate existence of Contributor;

         (d) the Issuer maintains its assets separately from the assets of
Contributor (including through the maintenance of a separate bank account), the
Issuer's funds and assets, and records relating thereto, have not been and are
not commingled with those of Contributor and the separate creditors of
Contributor will be entitled to be satisfied out of Contributor's assets prior
to any value in Contributor becoming available to Contributor's equityholders or
the Issuer's creditors;

         (e) all business correspondence of the Issuer and other communications
are conducted in the Issuer's own name and on its own stationery;

         (f) Contributor does not act as an agent of the Issuer in any capacity
and the Issuer does not act as agent for Contributor, but instead presents
itself to the public as a limited liability company separate from Contributor
and the Company; provided that Contributor is the Servicer under the
Contribution and Servicing Agreement;

         (g) the Issuer shall not issue any securities or cause any Person of
which it is the sole shareholder or economic owner to issue any securities
(other than the Notes or any Class F Instruments) unless it shall have received
from the Rating Agencies a written confirmation that the issuance of such
securities will not result in a Ratings Effect with respect to any class of
Notes;

         (h) except as contemplated by the Transaction Documents or permitted by
its operating agreement, the Issuer shall not pledge any of its assets for the
benefit of any Person; and

         (i) except as contemplated by the Transaction Documents or permitted by
its operating agreement (including, without limitation, any amounts payable to
the Issuer or the Managing Member pursuant to Article III of the Indenture or
any Predecessor Contract and the related Equipment), the assets of the Issuer
shall be the Trust Property and the Issuer shall take

                                       13
<PAGE>

such actions as may be necessary or advisable to protect the validity of the
Grant of the Trust Property.

         Section 6.02 NO BANKRUPTCY PETITION AGAINST THE COMPANY.

         The Issuer covenants and agrees it will not, prior to the date that is
one year and one day after the payment in full of all amounts owing pursuant to
the Transaction Documents, institute against, or join any other Person in
instituting against, any of the Company or the Managing Member, any bankruptcy,
reorganization, receivership, arrangement, insolvency or liquidation proceedings
or other similar proceedings under any federal or state bankruptcy or similar
law. This Section 6.02 shall survive the termination of this Agreement.

                                  ARTICLE VII

                                  SUBSTITUTION

         Section 7.01 SUBSTITUTION.

         In the event that the Contributor or the Servicer contributes,
transfers, sells or assigns a Substitute Contract to the Company pursuant to
Section 7.01 of the Contribution and Servicing Agreement, the Company
simultaneously therewith, hereby sells, transfers, conveys and assigns any such
Substitute Contract and the security interest in the related Equipment to the
Issuer (or, in the case of Fair Market Value Leases, grant a valid security
interest in the related Equipment). In addition, the Company hereby agrees to
take any action to facilitate the transfer of any Predecessor Contract,
including (i) delivery to the Trustee and the Issuer of the Substitute Contract
Transfer Form, substantially in the form of Exhibit D to the Contribution and
Servicing Agreement, transferring to the Issuer all right, title and interest of
the Company in and to the Eligible Contract being substituted and a security
interest in the related Equipment subject thereto, and granting the Trustee a
valid and first priority security interest in such Substitute Contracts and the
related Equipment (in accordance with the Transaction Documents), (ii) delivery
to the Trustee of amendments to, or executed originals of, the UCC financing
statements referred to in Section 1.01(c) of the Contribution and Servicing
Agreement reflecting the deletion of the Predecessor Contract and the addition
of the Substitute Contract, (iii) delivery to the Contributor or the Servicer,
as the case may be, by the Company of an instrument, substantially in the form
of Exhibit D of the Contribution and Servicing Agreement, transferring to the
Contributor or the Servicer, as the case may be, without representation or
warranty, all of the Company's right, title and interest in and to the related
Predecessor Contract, (iv) delivery to the Trustee of the original, manually
executed counterpart of each Substitute Contract that constitutes "chattel
paper" or an "instrument" under the UCC as appropriate for the purposes of
perfecting a security interest under the UCC and (v) delivery to the Trustee of
an amendment to the Contract Schedule, reflecting the deletion of the
Predecessor Contract and the addition of the Substitute Contract. Upon delivery
of each Substitute Contract and the Substitute Contract Transfer Form therefor,
the definition of "COMPANY ASSETS" will be automatically amended to (1) include
such Substitute Contract and all related property and rights contained in the
definition of Contributed Property and (2) not include the related Predecessor
Contract and all related property and rights contained in the definition of
Contributed Property.

                                       14
<PAGE>

         Section 7.02 NOTICE OF SUBSTITUTION.

         In the Monthly Servicer Report to be delivered on each Determination
Date, the Company shall cause the Servicer to give written notice to the
Trustee, each Noteholder, and the Company of each substitution of Contracts
pursuant to Section 7.01 hereof during the preceding Collection Period. Such
Monthly Servicer Report or other written notice shall (i) specify the amount of
each periodic Contract Payment under the Predecessor Contract and the amount of
each periodic Contract Payment under each Eligible Contract being substituted,
(ii) specify the residual values of the Equipment subject to the Predecessor
Contract and the Equipment subject to the Eligible Contract being substituted,
(iii) specify the Discounted Contract Balance of the Predecessor Contracts, the
Discounted Contract Balance of the Substitute Contracts, and any amounts to be
deposited in the Collection Account in connection with such Substitute Contracts
and (iv) with respect to a substitution pursuant to Section 7.01 hereof, be
accompanied by an Officer's Certificate, substantially in the form of Exhibit C
hereto, certifying as to compliance with the provisions of Section 7.01 hereof.

         Section 7.03 CONTRIBUTOR'S AND COMPANY'S SUBSEQUENT OBLIGATIONS.

         Upon any substitution of Contracts in accordance with the provisions of
this Section 7, the Company's obligations hereunder with respect to the
Predecessor Contract shall cease but the Contributor and the Company shall each
thereafter have the same obligations with respect to the Substitute Contract
substituted as it has with respect to all other Contracts subject to the terms
hereof.

         Section 7.04 USAGE OF PREDECESSOR CONTRACTS IN CALCULATION.

         After substitution therefor in accordance with the terms and conditions
of the Transaction Documents, no Predecessor Contract or any other Contract
repurchased or substituted for in accordance with the terms and conditions of
the Transaction Documents, including the subsequent default, delinquency or
breach thereof, shall be included in any calculation or determination made under
the Transaction Documents, including, without limitation, the calculation of
either any Amortization Event or Indenture Event of Default.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         Section 8.01 AMENDMENT.

(a) This Agreement may be amended from time to time by the Issuer and the
Company with the written confirmation of the Rating Agencies that such amendment
will not result in a Ratings Effect with respect to any class of Notes (but
without the consent of the Trustee or any of the Noteholders), to cure any
ambiguity, to correct or supplement any provision herein that may be
inconsistent with any other provisions herein, or to add or amend any other
provisions with respect to matters or questions arising under this Agreement;
provided, however, that such amendment shall not adversely affect in any
material respect the interests of the Trustee, the Noteholders or the Swap
Providers, unless so consented to by each entity so affected.

                                       15
<PAGE>

         (b) This Agreement may also be amended from time to time by the Issuer
and the Company, with (x) the written confirmation of the Rating Agencies that
such amendment will not result in a Ratings Effect with respect to any class of
Notes and (y) the consent of the Majority of Voting Rights, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement; provided, however, that no such amendment shall
(a) increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on Contracts or payments that are required to
be made on any Note without the consent of the Holder of such Note, (b) reduce
the aforesaid percentage required to consent to any such amendment or (c)
adversely affect in any material respect the interests of the Trustee, any
Noteholder or any Swap Provider without, in each instance, the consent of each
entity so affected.

         (c) Approval of the particular form of any proposed amendment or
consent shall not be necessary for the consent of the Noteholders under Section
8.01(b), but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Noteholders or the Swap Providers
shall be subject to such reasonable requirements as the Trustee may prescribe.

         (d) Prior to the execution of any such amendment to this Agreement
proposed in accordance with Section 8.01(b), the Issuer shall deliver a copy of
the proposed amendment to the Company, the Swap Providers, the Rating Agencies
and the Trustee.

         (e) In executing any amendment to this Agreement pursuant to this
Section 8.01, the Trustee shall be entitled to receive (i) an Officer's
Certificate of the Company stating that all conditions precedent for entering
into such amendment as set forth in this Agreement have been met, and (ii) an
Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement.

         Section 8.02 EFFECT OF INVALIDITY OF PROVISIONS.

         In case any one or more of the provisions contained in this Agreement
should be or become invalid, illegal or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions contained
herein shall in no way be affected, prejudiced or disturbed thereby.

         Section 8.03 NOTICES.

         All demands, notices and communications provided for or permitted
hereunder shall be in writing, and shall be deemed to have been duly given if
personally delivered to or mailed by certified or registered mail return receipt
requested, or delivered by courier, or delivered by facsimile to a facsimile and
telephone number provided by the relevant Person in writing, with subsequent
telephone confirmation of the receipt thereof, and shall be deemed to have been
duly given upon receipt, and addressed or delivered to it at its address (or in
case of facsimile, to the facsimile number at such address) as follows or at
such other address as may be designated by it by notice to the other party: (a)
in the case of the Trustee, at the following address: 180 East Fifth Street, St.
Paul, Minnesota 55101, Attention: Structured Finance, Facsimile: (651) 244-0089,
(b) in the case of the Servicer, at the following address: 2500 York Road,
Jamison,

                                       16
<PAGE>

Pennsylvania 18929, Attention: Securitization Manager, Facsimile: (215)
488-5416, (c) in the case of the Issuer, 2500 York Road, Jamison, Pennsylvania
18929, Attn: Securitization Manager, Facsimile (215) 488-5416, with a copy to
the Servicer at the address set forth in clause (b) above, (d) in the case of
the Company at the following address: 2500 York Road, Jamison, Pennsylvania
18929, Attention: Securitization Manager, Facsimile: (215) 488-5416, (e) in the
case of the Rating Agencies, to the following addresses: Fitch, Inc., 55 East
Monroe Street, Chicago, Illinois 60603, Attention: Mr. Joseph Tuczak, Facsimile:
(312) 368-2069; Standard & Poor's Ratings Services, 55 Water Street, 41st Floor,
New York, New York 10041-0003, Attention: Structured Finance ABS Surveillance,
Facsimile: (212) 438-2664; and Moody's Investors Service, Inc., 99 Church
Street, 4th Fl., New York, New York 10007, Attention: ABS Monitoring Department,
Facsimile: (212) 553-3856 and (f) in the case of the Swap Providers, at the
contact information provided in the Swap Agreement, or at other such respective
address as shall be designated by such party in a written notice to the other
parties. Any notice required or permitted to be mailed to a Noteholder shall be
given by first class mail, postage prepaid, at the address of such Holder as
shown in the Note Register. Any notice so mailed within the time prescribed in
this Agreement shall be conclusively presumed to have been duly given, whether
or not the Noteholder receives such notice.

         Section 8.04 ENTIRE AGREEMENT.

         This Agreement, including the Exhibits hereto, contains the entire
agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements between them, whether oral
or written, of any nature whatsoever with respect to the subject matter hereof.

         Section 8.05 SURVIVAL.

         All indemnities and undertakings of the Company and the Issuer
hereunder shall survive the termination of this Agreement.

         Section 8.06 CONSENT TO SERVICE.

         Each party irrevocably consents to the service of process by registered
or certified mail, postage prepaid, to it at its address provided on the
signature page hereto.

         Section 8.07 JURISDICTION NOT EXCLUSIVE.

         Nothing herein will be deemed to preclude either party hereto from
bringing an action or proceeding in respect of this Agreement in any
jurisdiction other than as set forth in Section 8.12 hereof.

         Section 8.08 CONSTRUCTION.

         The headings in this Agreement are for convenience only and are not
intended to influence its construction. References to Sections, Schedules and
Exhibits in this Agreement are to the Sections of and Schedules and Exhibits to
this Agreement. Any Schedules and Exhibits are hereby incorporated into and form
a part of this Agreement. In this Agreement, the singular includes the plural,
the plural the singular, the words "and" and "or" are used in the conjunctive

                                       17
<PAGE>

or disjunctive as the sense and circumstances may require and the word
"including" means "including, but not limited to." Unless otherwise stated in
this Agreement, in the computation of a period of time from a specified date to
a later specified date, the word "from" means "from and including" and the words
"to" and "until" each means "to but excluding".

         Section 8.09 FURTHER ASSURANCES.

         In addition to its agreements set forth herein, the Company (at the
Issuer's expense) agrees to do such further acts and things and to execute and
deliver such additional assignments, agreements, powers and instruments as are
reasonably requested by the Issuer to carry into effect the purposes of this
Agreement and the transactions contemplated herein, including, without
limitation, such documents as are necessary to protect the Trustee's interest in
the Contracts, the security interest in the Equipment and the other Company
Assets in accordance with the Transaction Documents.

         Section 8.10 THIRD PARTY BENEFICIARIES.

         Each Noteholder, the Swap Providers and the Trustee shall be an express
third party beneficiary of this Agreement. The obligations of the Company
hereunder may be assigned by the Issuer to the Trustee under the Indenture. The
Company acknowledges that the Issuer intends, pursuant to the Indenture, to
pledge the Company Assets, together with its respective rights under this
Agreement to the Trustee on the Closing Date, each Contribution Date and each
Substitution Date, with respect to each Contract and each Substitute Contract.
The Company acknowledges and consents to such conveyance and waives any further
notice thereof and covenants and agrees that the representations and warranties
of the Company contained in this Agreement and the rights of the Issuer
hereunder, are intended to benefit the Trustee, the Swap Providers and each
Noteholder. In furtherance of the foregoing, the Company covenants and agrees to
perform its duties and obligations hereunder, in accordance with the terms
hereof and for the benefit of the Trustee, the Swap Providers and the
Noteholders and that, notwithstanding anything to the contrary in this
Agreement, the Company shall be directly liable to the Trustee (notwithstanding
any failure by the Servicer or the Issuer to perform its duties and obligations
hereunder, or under the Indenture or Contribution and Servicing Agreement), and
that the Trustee may enforce the duties and obligations of the Company under
this Agreement against the Company for the benefit of the Swap Providers and the
Noteholder.

         Section 8.11 GOVERNING LAW.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS RULES REGARDING
CONFLICT OF LAWS (EXCEPT FOR SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

         Section 8.12 CONSENT TO JURISDICTION; WAIVER OF OBJECTION TO VENUE.

         EACH OF THE ISSUER AND THE COMPANY HEREBY AGREED TO THE NON-EXCLUSIVE
JURISDICTION OF ANY FEDERAL COURT LOCATED WITH THE STATE OF NEW YORK. EACH OF
THE PARTIES HERETO IRREVOCABLY

                                       18
<PAGE>

SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN, CITY
OF NEW YORK, AND EACH PARTY IRREVOCABLY HEREBY WAIVES ANY OBJECTION BASED ON
FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED
HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENT TO THE GRANTING OF
SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

         Section 8.13 WAIVER OF JURY TRIAL.

         TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE ISSUER AND THE
COMPANY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES HERETO
ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
BETWEEN ANY OF THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE
RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

         Section 8.14 HEADINGS AND CROSS-REFERENCES.

         The various headings in this Agreement are included for convenience
only and shall not affect the meaning or interpretation of any provision of this
Agreement. References in this Agreement to Section names or numbers are to such
Sections of this Agreement.

         Section 8.15 COSTS AND EXPENSES.

         The Company will pay all reasonable expenses incident to the
performance of its obligations under this Agreement and under the Indenture and
the Company agrees to pay all reasonable out-of-pocket costs and expenses of the
Issuer, including fees and expenses of counsel, in connection with the
enforcement of any obligation of the Company hereunder.

         Section 8.16 CONFIDENTIAL INFORMATION.

         The Issuer agrees and covenants that it will neither use nor disclose
to any person the names and addresses of the Obligors, except in connection with
the enforcement of the Issuer's rights hereunder, under the Contracts, under the
applicable Transaction Documents or as required by law.

         Section 8.17 STATUTORY REFERENCES.

         References in this Agreement to any section of the UCC shall mean, on
and after the effective date of adoption of any revision to the UCC in the
applicable jurisdiction, such revised or successor section thereto.

                                       19
<PAGE>

         Section 8.18 EXECUTION IN COUNTERPARTS.

         This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, and all of which shall constitute one and the
same instrument.

         Section 8.19 POWER OF ATTORNEY

          The Company hereby grants to each of the Issuer and the Trustee the
power as its attorney-in-fact (i) to file UCC financing statements in the
appropriate offices evidencing the conveyance of the Contracts and other Company
Assets to the Issuer and (ii) in the event an event of default exists under any
Transaction Document, to do any and all other acts as may be necessary or
appropriate to effect the transaction contemplated herein. The Company will
execute any document or instrument deemed necessary by the Issuer or the Trustee
to effect or to evidence this power of attorney. All costs associated with such
filings or instructions shall be paid by the Company.

                            [Signature page follows]

                                       20
<PAGE>

                                          SUBSEQUENT CONTRACT TRANSFER AGREEMENT

         IN WITNESS WHEREOF, Issuer and Company have duly executed this
Subsequent Contract Transfer Agreement as of the date and year first above
written.

                                         DVI RECEIVABLES CORP. XIX

                                         By: /s/ Steven R. Garfinkel
                                             -----------------------------
                                         Name:       Steven R. Garfinkel
                                         Title:      EVP and CFO
                                         Address:    2500 York Road
                                                     Jamison, Pennsylvania 18929
                                         Attention:  Securitization Manager
                                         Telephone:  (215) 488-5042
                                         Facsimile:  (215) 488-5416

                                         DVI RECEIVABLES XIX, L L C

                                         By:         DVI Receivables Corp  VIII,
                                                     its managing member

                                         By: /s/ Steven R. Garfinkel
                                             -----------------------------
                                         Name:       Steven R.  Garfinkel
                                         Title:      EVP and CFO
                                         Address:    2500 York Road
                                                     Jamison, Pennsylvania 18929
                                         Attention:  Securitization Manager
                                         Telephone:  (215) 488-5042
                                         Facsimile:  (215) 488-5416

<PAGE>

                                    EXHIBIT A

                        SUBSEQUENT CONTRACT TRANSFER FORM

                                                                          [DATE]

         DVI RECEIVABLES CORP. XIX (the "COMPANY") and DVI RECEIVABLES XIX,
L.L.C. (the "ISSUER"), pursuant to the Subsequent Contract Transfer Agreement,
dated as of May 1, 2003 (the "SCTA"), hereby confirm their understanding with
respect to the sale, transfer, assignment and conveyance by the Company to the
Issuer of those Contracts listed on Schedule 1 attached hereto (the
"CONTRACTS"), together with a first priority perfected (except with regard to
Equipment that had an Original Equipment Cost of less than $25,000) security
interest in all of the Company's right, title and interest in and to the related
Equipment (except for (i) such item of Equipment that had an Original Equipment
Cost of less than $25,000 and (ii) any ownership interest in such item of
Equipment, with respect to which the Company instead grants to the Issuer a
first priority perfected security interest therein), and other related property
described herein.

         CONVEYANCE OF COMPANY ASSETS. On the date set forth above, the Company
hereby transfers to the Issuer all of the Company's rights, title and interest
in, to, and under the Contracts listed on Schedule 1 hereto including, without
limitation, its interests in the proceeds of such Contracts, the right to
receive all amounts due or to become due thereunder after _______________ (the
"CUT-OFF DATE"), but excluding the Company's Retained Interest, if any, together
with all of the other Company Assets related thereto.

         The Company hereby confirms that:

         (1) On or prior to the date hereof (the "SUBSEQUENT CONTRACT TRANSFER
DATE"), the Contributor shall have deposited in the Collection Account all
collections in respect of the Contracts that were due on or after the Cut-off
Date;

         (2) Each representation and warranty of the Company under the
Contribution and Servicing Agreement and the SCTA is true and correct as of the
date hereof, the Contributor was not insolvent nor will it be made insolvent by
the transfer contemplated herein nor is it aware of any pending insolvency and
the Company is not in breach of any covenant under the SCTA;

         (3) Each Contract sold, transferred, assigned and conveyed pursuant
hereto is an Eligible Contract;

         (4) On or prior to the Subsequent Contract Transfer Date, the Company
shall have delivered to the Trustee the sole original, manually executed
counterpart of each Contract;

         (5) The sum of the Discounted Contract Balances as of the Cut-off Date
of the Contracts listed on Schedule 1 attached hereto is $__________ (calculated
using a Discount Rate of __________%);

         (6) Reserved;

                                      A-1
<PAGE>

         (7) When the Contracts are added to the Trust Property, all
representations and warranties of the Company in the SCTA will be true and
correct as of the date set forth in the heading of this Subsequent Contract
Transfer Form unless any breach of such representations and warranties resulting
from the inclusion of such Contract shall have been waived in advance by
Noteholders evidencing more than 50% of the Voting Rights; and

         (8) The Contributor has delivered to the Trustee (i) amendments to, or
executed originals of, the UCC financing statements referred to in Section
1.01(d) of the Contribution and Servicing Agreement (the "CONTRIBUTION AND
SERVICING AGREEMENT"), dated as of May 1, 2003 between DVI Financial Services
Inc. and the Company, reflecting the addition of the Contract(s) and (ii) an
amendment to the Contract Schedule.

         All terms and conditions of the SCTA with respect to the Company and
the Contracts have been complied with and are hereby ratified, confirmed and
incorporated herein; provided that, in the event of any conflict, the provisions
of this Subsequent Contract Transfer Form shall control over the conflicting
provisions of the Contribution and Servicing Agreement.

                            [signature page follows]

                                      A-2
<PAGE>

         Terms capitalized herein and not defined herein shall have their
respective meanings as set forth in the SCTA and if not defined therein, then as
such terms are defined in Appendix I to the Contribution and Servicing
Agreement.

                                     DVI RECEIVABLES CORP. XIX

                                              By:
                                                 --------------------------
                                              Name:
                                              Title:

                                     DVI RECEIVABLES XIX, L.L.C.

                                              By:   DVI RECEIVABLES CORP. VIII,
                                                    its managing member

                                              By:
                                                 --------------------------
                                              Name:
                                              Title:

                                      A-3
<PAGE>

                                    EXHIBIT B

                  FORM OF RE-ASSIGNMENT OF ISSUER'S CERTIFICATE
                   PURSUANT TO SECTION 1.04(C) OR 5.01 OF THE
                     SUBSEQUENT CONTRACT TRANSFER AGREEMENT

         DVI RECEIVABLES XIX, L.L.C. (the "ISSUER") pursuant to the Subsequent
Contract Transfer Agreement, dated as of May 1, 2003, between the Issuer and DVI
RECEIVABLES CORP. XIX (the "COMPANY") does hereby sell, transfer, assign,
deliver and otherwise convey to Company, without recourse, representation or
warranty, all of the Issuer's right, title and interest in and to all of the
Predecessor Contracts listed on Schedule A hereto and all security and documents
relating thereto.

         IN WITNESS WHEREOF, I have hereunto set my hand this ____ day of
__________________.

                                        DVI RECEIVABLES XIX, L.L.C.

                                        By:       DVI Receivables Corp. VIII,
                                                  its managing member

                                        By:
                                           -------------------------------------
                                        Name:
                                        Title:

                                      B-1
<PAGE>

                                    EXHIBIT C

              FORM OF OFFICER'S CERTIFICATE PURSUANT TO ARTICLE VII

                  The undersigned certifies that the undersigned is a duly
authorized officer of DVI RECEIVABLES CORP. XIX (the "COMPANY"), and that, as
such the undersigned is authorized to execute and deliver this certificate on
behalf of the Company and further certifies pursuant to Section 7.02 of the
Subsequent Contract Transfer Agreement (the "AGREEMENT") dated as of May 1,
2003, between the Company and DVI RECEIVABLES XIX, L.L.C. (the "ISSUER"), that
to his or her knowledge, the Company's transfer to the Issuer of those
Substitute Contracts listed in Schedule 1 attached hereto, together with all of
the Company's right, title and interest in and to the related Contracts (other
than the Company's Retained Interest) and the related Company Assets, is in
compliance with Article VII of the Agreement.

                  IN WITNESS WHEREOF, I have hereunto signed my name.

                                                DVI RECEIVABLES CORP. XIX

                                                By:
                                                   -----------------------------
                                                Name:
                                                Title:

                                      C-1EXHIBIT 4.4

<PAGE>

                  LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                       OF

                           DVI RECEIVABLES XIX, L.L.C.
                           DATED AS OF APRIL 10, 2003

<PAGE>

<TABLE>
<CAPTION>
                                   LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                                         OF

                                             DVI RECEIVABLES XIX, L.L.C

                                                 TABLE OF CONTENTS

<S>                                                                                                              <C>
ARTICLE I  DEFINITIONS
         1.1      Act.............................................................................................1
         1.2      Affiliate.......................................................................................1
         1.3      Agreement.......................................................................................1
         1.4      Articles........................................................................................1
         1.5      Assignee........................................................................................1
         1.6      Capital Contribution............................................................................1
         1.7      Closing.........................................................................................1
         1.8      Company.........................................................................................1
         1.9      Contribution and Servicing Agreement............................................................1
         1.10     Disposition (Dispose)...........................................................................2
         1.11     Dissolution Event...............................................................................2
         1.12     Distribution....................................................................................2
         1.13     DVI.............................................................................................2
         1.14     Effective Date..................................................................................2
         1.15     Event of Bankruptcy.............................................................................2
         1.16     Fiscal Year.....................................................................................2
         1.17     Indenture.......................................................................................2
         1.18     Independent Director............................................................................2
         1.19     Management Right................................................................................3
         1.20     Managing Member.................................................................................3
         1.21     Member..........................................................................................3
         1.22     Membership Interest.............................................................................3
         1.23     Notes...........................................................................................3
         1.24     Officer.........................................................................................3
         1.25     Organization....................................................................................3
         1.26     Person..........................................................................................3
         1.27     Principal Office................................................................................3
         1.28     Proceeding......................................................................................3
         1.29     Property........................................................................................3
         1.30     Related Company.................................................................................3
         1.31     SCTA............................................................................................3
         1.32     Tax Characterization and Additional Tax Terms...................................................3
         1.33     Term............................................................................................4
         1.34     Unit............................................................................................4

                                                        -i-

<PAGE>

ARTICLE II  FORMATION
         2.1      Organization....................................................................................4
         2.2      Agreement.......................................................................................4
         2.3      Name............................................................................................5
         2.4      Term............................................................................................5
         2.5      Registered Agent and Office.....................................................................5
         2.6      Principal Office................................................................................5

ARTICLE III  LIMITED PURPOSE; NATURE OF BUSINESS
         3.1      Limited Business Purpose........................................................................5

ARTICLE IV  LIMITATIONS ON ACTIVITIES
         4.1      Limitations on Activities.......................................................................7

ARTICLE V  ACCOUNTING AND RECORDS
         5.1      Records to be Maintained........................................................................8
         5.2      Reports.........................................................................................9
         5.3      Tax Returns and Reports.........................................................................9
         5.4      Records to be Kept Separate.....................................................................9

ARTICLE VI  NAME AND ADDRESS OF MEMBER

ARTICLE VII  RIGHTS AND DUTIES OF MEMBER
         7.1      Liability of Member.............................................................................9
         7.2      Representations and Warranties..................................................................9
         7.3      Conflicts of Interest..........................................................................10

ARTICLE VIII  MANAGEMENT
         8.1      Management of the Company......................................................................10
         8.2      Authority of Managing Member to Bind the Company...............................................11
         8.3      Actions of the Managing Member.................................................................11
         8.4      Compensation of Managing Member................................................................11
         8.5      Managing Member's Standard of Care.............................................................12
         8.6      Resignation....................................................................................12
         8.7      Payment of Liabilities.........................................................................12

ARTICLE IX  CONTRIBUTIONS
         9.1      Membership Interest............................................................................12
         9.2      Contributions..................................................................................12
         9.3      Withdrawal.....................................................................................12
         9.4      Interest.......................................................................................12
         9.5      No Personal Liability..........................................................................12

ARTICLE X  ALLOCATIONS AND DISTRIBUTIONS
         10.1     Taxable Income Allocations.....................................................................13

                                                       -ii-
<PAGE>

         10.2     Distributions..................................................................................13

ARTICLE XI  TRANSFER OF MEMBERSHIP INTEREST
         11.1     Compliance with Securities Laws................................................................13
         11.2     Transfer of Economic Interest..................................................................13
         11.3     Transfer of Membership Interest................................................................14
         11.4     Status of Transferee...........................................................................14
         11.5     Dissolution or Bankruptcy of the Member........................................................14

ARTICLE XII  DISSOLUTION AND WINDING UP
         12.1     Dissolution....................................................................................14
         12.2     Effect of Dissolution..........................................................................15
         12.3     Distribution of Assets on Dissolution..........................................................15
         12.4     Winding Up and Filing Articles of Dissolution..................................................16

ARTICLE XIII  MISCELLANEOUS
         13.1     Notices........................................................................................16
         13.2     Headings.......................................................................................16
         13.3     Entire Agreement...............................................................................16
         13.4     Binding Agreement..............................................................................16
         13.5     Saving Clause..................................................................................17
         13.6     Counterparts...................................................................................17
         13.7     Governing Law..................................................................................17
         13.8     No Membership Intended for Nontax Purposes.....................................................17
         13.9     No Rights of Creditors and Third Parties under Agreement.......................................17
         13.10    General Interpretive Principles................................................................17
</TABLE>

                                                       -iii-

<PAGE>

                                        4
                  LIMITED LIABILITY COMPANY OPERATING AGREEMENT

                                       OF

                           DVI RECEIVABLES XIX, L.L.C.

         This Limited Liability Company Operating Agreement of DVI Receivables
XIX, L.L.C. (the "Company"), a Delaware limited liability company organized
pursuant to the Delaware Limited Liability Company Act, is entered into and
shall be effective as of April 10, 2003, by and between the Company and DVI
Receivables Corp. VIII, as the sole member of the Company.

                                    ARTICLE I
                                   DEFINITIONS

         Capitalized terms not defined herein shall have the meaning set forth
in the Indenture (as defined below). For purposes of this Agreement (as defined
below), unless the context clearly indicates otherwise, the following terms
shall have the following meanings:

         1.1 Act. The Delaware Limited Liability Company Act and all amendments
thereto.

         1.2 Affiliate. Any entity other than the Member (i) which owns
beneficially, directly or indirectly, 10% or more of the outstanding shares of
common stock of the Managing Member; or (ii) of which 10% or more of the
outstanding shares of its common stock is owned beneficially, directly or
indirectly, by any entity described in clause (i) above, or (iii) which is
"controlled", as defined in Section 230.405 of the Rules and Regulations of the
Securities and Exchange Commission, 17 C.F.R. Section 230.405, by an entity
described in clause (i) above.

         1.3 Agreement. This Limited Liability Company Operating Agreement
including all amendments adopted in accordance with this Agreement and the Act.

         1.4 Articles. The Articles of Organization of the Company, as amended
from time to time, and filed with the Department of State of the State of
Delaware.

         1.5 Assignee. A transferee of the Membership Interest.

         1.6 Capital Contribution. Any contribution of rights, Property or
services made by or on behalf of the Member or its Assignee.

         1.7 Closing. The "Closing Date" as defined in the Indenture.

         1.8 Company. DVI Receivables XIX, L.L.C., a limited liability company
formed under the laws of Delaware, and any successor limited liability company.

         1.9 Contribution and Servicing Agreement. That certain Contribution and
Servicing Agreement (as amended, supplemented, restated or otherwise modified
from time to time), dated

<PAGE>

as of May 1, 2003, by and between DVI Receivables Corp. XIX and DVI, as
contributor and servicer.

         1.10 Disposition (Dispose). Any sale, assignment, exchange, mortgage,
pledge, grant, hypothecation, or other transfer, absolute or as security or
encumbrance (including dispositions by operation of law).

         1.11 Dissolution Event. An event, the occurrence of which will result
in the dissolution of the Company under Article XIV.

         1.12 Distribution. A transfer of Property to the Member on account of
its Membership Interest as described in Article X.

         1.13 DVI. DVI Financial Services Inc., a Delaware corporation.

         1.14 Effective Date. April 10, 2003.

         1.15 Event of Bankruptcy. As to any Person means the filing of a
petition for relief as to such Person as debtor or bankrupt under the Bankruptcy
Reform Act of 1978, as amended, or other similar provision of law of any
jurisdiction (except if such petition is contested by such Person and has been
dismissed within 90 days); insolvency of such Person as finally determined by a
court proceeding; filing by such Person of a petition or application to
accomplish the same or for the appointment of a receiver or a trustee for such
Person or a substantial part of its assets; commencement of any proceedings
relating to such Person as a debtor under any other reorganization, arrangement,
insolvency, adjustment of debt or liquidation law of any jurisdiction, whether
now in existence or hereinafter enacted, if such Person indicates its approval
of such proceeding, consents thereto or acquiesces therein, or such proceeding
is contested by such Person and has not been finally dismissed within 90 days.

         1.16 Fiscal Year. The year commencing on the opening of business on the
first day of July of each calendar year and terminating on the close of business
on the last day of June of the immediately succeeding calendar year thereto.

         1.17 Indenture. That certain Indenture (as amended, supplemented,
restated or otherwise modified from time to time), dated as of May 1, 2003, by
and between the Company and U.S. Bank National Association (as successor to U.S.
Bank Trust National Association), as Trustee.

         1.18 Independent Director. An individual who is not, at the time of
initial appointment, nor has been, a director of any Affiliate of the Member
(except that an individual who serves in similar capacities for other "special
purpose corporations" formed by DVI or its affiliates is not thereby
disqualified from being an Independent Director) or is an officer of, employed
by, a creditor, supplier or contractor of, or holding any beneficial or economic
interest in the Member or any Affiliate of the Member, or is a family member of
any of the foregoing.

                                       2
<PAGE>

         1.19 Management Right. The right of the Member to participate in the
management of the Company, to vote on any matter, and to grant or to withhold
consent or approval of actions of the Company.

         1.20 Managing Member. The Member, as set forth in Section 8.1.

         1.21 Member. DVI Receivables Corp. VIII, or any Assignee thereof.

         1.22 Membership Interest. The rights of the Member to Distributions
(liquidating or otherwise) and allocations of the profits, losses, gains,
deductions, and credits of the Company, and, to the extent permitted by this
Agreement, to possess and exercise Management Rights.

         1.23 Notes. The Notes, as set forth in the Indenture and any Class F
Instruments.

         1.24 Officer. An individual appointed as an officer of the Company
pursuant to Section 8.1(c). The initial Officers of the Company shall be:

                  John P. Boyle                    CEO

                  Steven R. Garfinkel              CFO and EVP

                  Philip C. Jackson                Vice President

                  Laurence J. Arnold               Secretary

                  Sheila Kalkunte                  Assistant Secretary

         1.25 Organization. A Person other than a natural person, including
without limitation corporations (both non-profit and other corporations),
partnerships (both limited and general), joint ventures, limited liability
companies, business trusts and unincorporated associations, but the term does
not include joint tenancies and tenancies by the entirety.

         1.26 Person. An individual, trust, estate, or any Organization
permitted to be a member of a limited liability company under the laws of the
State of Delaware.

         1.27 Principal Office. The Principal Office of the Company set forth in
Section 2.6.

         1.28 Proceeding. Any administrative, judicial, or other adversary
proceeding, including without limitation litigation, arbitration, administrative
adjudication, mediation, and appeal or review of any of the foregoing.

         1.29 Property. Any property, real or personal, tangible or intangible,
including money, and any legal or equitable interest in such property, but
excluding services and promises to perform services in the future.

                                       3
<PAGE>

         1.30 Related Company. The Member of the Company or any entity other
than the Company now or hereafter controlled directly or indirectly by, or under
direct or indirect common control with, the Member of the Company.

         1.31 SCTA. That certain Subsequent Contract Transfer Agreement, dated
as of May 1, 2003, by and between the Company and DVI Receivables Corp XIX.

         1.32 Tax Characterization and Additional Tax Terms. For federal income
tax purposes, and to the extent applicable for state and local income and
franchise tax purposes, it is intended that the Company be disregarded as an
entity separate from the Member; provided, however, if it is determined that
there are two or more members of the Company then it is intended that the
Company be treated as a partnership for such purposes, and the Managing Member
shall (i) file any information returns and reports and make any elections or
take any other similar action required for the Company to be classified as a
partnership for such purposes and (ii) act as the tax matters partner of the
Company pursuant to Section 6231(a)(7) of the Code and applicable Tax
Regulations.

                  (a) CODE shall mean the Internal Revenue Code of 1986.

                  (b) TAX REGULATIONS shall mean the federal income tax
regulations promulgated by the United States Treasury Department under the Code
as such Tax Regulations may be amended from time to time. All references herein
to a specific section of the Tax Regulations shall be deemed also to refer to
any corresponding provision of succeeding Tax Regulations.

         1.33 Term. The term of this Agreement, as set forth in Section 2.4
hereof.

         1.34 Unit. One of the one hundred (100) units of Membership Interest
that are authorized to be issued under this Agreement. Each unit represents a
Membership Interest of one percent (1%). All Units issued pursuant this
Agreement are issued to the Member, as sole member of the Company.

                                   ARTICLE II
                                    FORMATION

         2.1 Organization. The Member hereby organizes the Company as a Delaware
limited liability company pursuant to the provisions of the Act.

         2.2 Agreement. (a) For and in consideration of the mutual covenants
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, (i) the Company and DVI Receivables
Corp. VIII hereby agree to the terms and conditions of this Agreement, as it may
from time to time be amended and (ii) in exchange for the agreement of DVI
Receivables Corp. VIII to act as Managing Member of the Company, the Company
hereby issues, assigns, transfers and conveys all of its Membership Interests to
DVI Receivables Corp. VIII, and, prior to and at all times after the Effective
Date, the term "Member" shall be deemed to refer to DVI Receivables Corp. VIII,
its successors and assigns. It is the express intention of the Company and DVI
Receivables Corp. VIII that this

                                       4
<PAGE>

Agreement shall be the sole source of agreement of the parties, and, except to
the extent a provision of this Agreement expressly incorporates federal income
tax rules by reference to sections of the Code or Tax Regulations or is
expressly prohibited or ineffective under the Act, this Agreement shall govern,
even when inconsistent with, or different than, the provisions of the Act or any
other law or rule, and to the extent any provision of this Agreement is
prohibited or ineffective under the Act, this Agreement shall be deemed to be
amended to the least extent necessary in order to make this Agreement effective
under the Act, in the event the Act is subsequently amended or interpreted in
such a way to make any provision of this Agreement that was formerly invalid
valid, such provision shall be considered to be valid from the effective date of
such interpretation or amendment.

         (b) The Company has been formed by DVI Receivables Corp. VIII to serve
as a special purpose entity in connection with securitization of certain
financial assets of DVI Receivables Corp. VIII or its Affiliates, and to engage
in any or all actions incidental thereto, including, without limitation,
entering into interest rate hedge tranactions. To facilitate the optimal
securitization of the Contributed Property (as defined in the Contribution and
Servicing Agreement), DVI has formed DVI Receivables Corp. XIX to receive from
DVI all Contributed Property pursuant to the Contribution and Servicing
Agreement, and to transfer all such Contributed Property to the Company pursuant
to the Subsequent Contract Transfer Agreement. To facilitate the optimal
securitization of such assets, pursuant to the Funding Sale Agreement, the
Company will also receive the Sold Company Assets (as defined in the Funding
Sale Agreement) and, pursuant to the DVI XV Sale Agreement, the Company will
receive the Sold Trust Property (as defined in the DVI XV Sale Agreement).

         2.3 Name. The name of the Company is DVI Receivables XIX, L.L.C., and
all business of the Company shall be conducted under that name.

         2.4 Term. The Company shall be dissolved and its affairs wound up in
accordance with the Act and this Agreement one year and one day after the Notes
have been paid in full pursuant to the Indenture, unless the Term shall be
extended by amendment to this Agreement and the Articles.

         2.5 Registered Agent and Office. The registered agent for the service
of process and the registered office shall be that Person and location reflected
in the Articles. The Member may, from time to time, change the registered agent
or office through appropriate filings with the Secretary of State of the State
of Delaware. In the event the registered agent ceases to act as such for any
reason or the registered office shall change, the Managing Member shall promptly
designate a replacement registered agent or file a notice of change of address
as the case may be.

         2.6 Principal Office. The Principal Office of the Company shall be
located at

                           c/o DVI Financial Services Inc.
                           2500 York Road
                           Jamison, PA 18929
                           Attention: Securitization Manager
                           Telephone: (215) 488-5028

                                       5
<PAGE>

or at such other address as such person may designate by written notice to the
Managing Member.

                                  ARTICLE III
                       LIMITED PURPOSE; NATURE OF BUSINESS

         3.1 Limited Business Purpose. The business purpose to be conducted or
promoted by the Company is limited to the following activities and none other:

                  (a) To acquire, own, purchase, hold, transfer, pledge and
otherwise deal with notes, debt, or other securities;

                  (b) To acquire, own, and hold one or more series of securities
("PASS-THROUGH SECURITIES") issued pursuant to one or more pooling agreements
(each, a "POOLING AGREEMENT"), and to issue one or more series of Pass-Through
Securities; such Pass-Through Securities of each series (i) will represent
ownership interests in various equipment finance contracts, the cash flow,
income, payments and proceeds therefrom and any related property and/or
collections in respect thereof, and (ii) may be structured to contain one or
more classes of Pass-Through Securities, each class having the characteristics
specified in the related Pooling Agreement; and to sell, transfer, assign,
finance and refinance one or more Pass-Through Securities or classes of
Pass-Through Securities of any series;

                  (c) To issue, acquire, own and hold one or more series of debt
obligations ("NOTES") pursuant to one or more indentures (each, an "INDENTURE"),
which Notes are collateralized by equipment finance contracts or income,
payments or proceeds therefrom ("FUNDING AGREEMENTS"), Pass-Through Securities
or supplemental collateral (collectively, the "COLLATERAL"); and to sell,
transfer, assign and finance such Notes with Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Banc of America Securities LLC, Nomura Securities
International, Inc. or any other underwriter and such other organizations as any
of them shall designate, at any time on or after May 1, 2003;

                  (d) To establish one or more trusts or other entities
("TRUSTS") to engage in any one or more of the activities described in any of
the clauses above or to issue, acquire, own, hold and sell a particular series
of notes to be issued pursuant to an indenture between such trust and an
indenture trustee (the "TRUSTEE"); to receive upon the formation of any such
Trust one or more certificates ("TRUST CERTIFICATES") representing the
beneficial ownership interest in such Trust; and to acquire, own, hold, sell,
transfer, assign, pledge, finance, refinance and otherwise deal with any or all
of the Trust Certificates in any such Trust;

                  (e) To invest and reinvest the funds received or collected by
the Company on Collateral in other investments of such types or in other
interest-bearing or discount securities, loans or other investments;

                  (f) To convey or transfer all or any portion of the Company's
right, title and interest in and to the Collateral for any series of Notes,
subject and subordinate to the rights of the related Noteholders;

                                       6
<PAGE>

                  (g) To transfer the Company's rights to (i) any cash flow in
excess of amounts necessary to pay holders of the Notes remitted, or to be
remitted to, the Company pursuant to an indenture with respect to such Notes or
(ii) amounts remitted or to be remitted to the Company pursuant to a pooling
agreement or a funding agreement;

                  (h) To acquire, own, hold, sell, transfer, assign, pledge,
finance, refinance and otherwise deal with (i) installment sales contracts,
equipment leases, equipment finance leases, rental and other contract payments
from leases or other contracts, equipment finance loans and notes secured (in
whole or in part) by income and proceeds from equipment (collectively,
"Contracts"), (ii) the equipment which is the subject of such Contracts, (iii)
policies of insurance relating to such Contracts, Contract payments due
thereunder, equipment, or proceeds of any of the foregoing, (iv) any other
assets which may be incidental to the ownership of such Contracts, or (v) any
participation interest in or security based on or backed by assets described in
(i) through (iv) (collectively, "Lease Receivables"); and

                  (i) To borrow money pursuant to one or more interim finance
agreements between the Company and one or more lenders and acquiring, owning,
leasing, purchasing, investing, transferring, selling and/or pledging certain
property to be contributed to the Company pursuant to a contribution agreement
or subsequent contract transfer agreement in connection with such borrowing;
provided, however, that there may be only one interim finance agreement
outstanding at one time, unless all other existing interim finance providers
shall have so consented;

                  (j) To engage in any other acts or activities and to exercise
any power permitted to the Company under the Act so long as the same are
incidental to, or connected with, the foregoing or are necessary, suitable or
convenient to accomplish the foregoing;

                  (k) To enter into one or more interest rate hedge transactions
in respect of one or more classes of Notes;

                  (l) Provided, however, that the Company shall not engage in
any of the permitted activities set forth in (a) through (k) above if doing so
shall result in a downgrade of the rating by a nationally recognized rating
agency requested by the Company to rate the securities related to any previously
issued (by the Company or one of the Trusts) Notes, Pass-Through Securities or
Trust Certificates; and

                  (m) The Company shall pay its liabilities from its own assets,
and not have any liability to any Related Company or any creditor of any Related
Company.

                                   ARTICLE IV
                            LIMITATIONS ON ACTIVITIES

         4.1 Limitations on Activities. Notwithstanding any other provision of
this Agreement and any provision of law which otherwise so empowers the Company,
the Company shall not, and no Member shall have any right, power or authority to
cause the Company, for so long as the obligations under the Indenture and the
Swap Agreements remain outstanding, and thereafter

                                       7
<PAGE>

without the unanimous affirmative vote of the Member's board of directors, to
perform any act in contravention of any of the following:

                  (a) The Company shall not

                           (i) consolidate or merge with or into any other
                  entity or person or dissolve or liquidate in whole or in part
                  or transfer its properties and assets substantially as an
                  entirety to any entity, or

                           (ii) engage in any action that bears on whether the
                  separate legal identity of the Company and the Member will be
                  respected, including, without limitation (A) holding itself
                  out as being liable for the debts of any other party; (B)
                  forming, or causing to be formed, any subsidiaries of the
                  Company or (C) acting other than in its name and through its
                  duly authorized officers or agents;

                  (b) The Company shall not engage in any joint activity or
transaction of any kind with or for the benefit of any Related Company,
including loans to or from any Related Company and any guarantee of the
indebtedness of any Related Company, except for

                           (i) entering into the agreements referenced in or
                  contemplated by Article III,

                           (ii) purchasing management services and leasing
                  office space or equipment, in each case only to the extent
                  necessary for the conduct of the Company's business, and

                           (iii) payment of capital distributions to the Member;

                  (c) The Company shall not create, incur, assume, guarantee or
in any manner become liable in respect of any indebtedness, except as stated in
Article III, other than trade payables and expense accruals incurred in the
ordinary course of business and which are incident to the business purpose of
the Company as stated in Article III above;

                  (d) The Company shall not commingle its funds or other assets
with those of any Person;

                  (e) Neither the Member nor the Company shall file or otherwise
initiate on behalf of the Company (i) a voluntary petition for relief under any
Chapter of the Bankruptcy Code, (ii) a receivership, conservatorship or
custodianship, (iii) an assignment for the benefit of creditors or (iv) any
other bankruptcy or insolvency related proceeding;

                  (f) The Company shall not dissolve or wind up its affairs upon
the dissociation, dissolution or Event of Bankruptcy of any of its Members;

                  (g) The Company shall not dissolve even if it has no remaining
Members if a personal representative of the last Member agrees in writing to
continue the Company and to act as the Member hereunder until such time as
another Member is effectively appointed hereunder

                                       8
<PAGE>

or, in the event that no such personal representative shall agree, the Company
shall make reasonable commercial efforts to cause the Trustee to act as interim
Member until a replacement Member is effectively appointed; and

                  (h) In the event that the Member undergoes an Event of
Bankruptcy, the Member shall not reject the Agreement.

                                   ARTICLE V
                             ACCOUNTING AND RECORDS

         5.1 Records to be Maintained. The Company shall maintain the following
records at the Principal Office:

                  (a) a record of the full name and last known mailing address
of the Member, together with information relating to the Member's Membership
Interest;

                  (b) a copy of the Articles and all amendments thereto,
together with executed copies of any powers of attorney pursuant to which the
Articles or any such amendment has been executed;

                  (c) a copy of the Company's federal, state and local income or
information tax returns and reports;

                  (d) a copy of this Agreement including all amendments thereto;
and

                  (e) the Company's books and records, including financial
statements of the Company, which shall be open to inspections by the Member or
its agents at reasonable times.

         5.2 Reports. The Managing Member shall prepare annual reports,
including a balance sheet, statement of profit and loss and changes in the
Member's account, and a statement of cash flows.

         5.3 Tax Returns and Reports. The Managing Member shall prepare and
timely file income tax returns of the Company in all jurisdictions where such
filings are required.

         5.4 Records to be Kept Separate. The Company (a) shall maintain its
financial and accounting books and records separate from those of any other
entity or person, (b) shall pay from its assets all obligations and indebtedness
of any kind incurred by it, and shall not pay from its assets any obligations or
indebtedness of any other entity or person, and (c) shall observe all
formalities required by its Articles, this Agreement and the laws of the State
of Delaware.

                                   ARTICLE VI
                           NAME AND ADDRESS OF MEMBER

         The name and address (or such other address as the Member shall
designate to the Company from time to time) of the Member is:

                                       9
<PAGE>

                           DVI Receivables Corp. VIII
                           c/o DVI Financial Services Inc.
                           2500 York Road
                           Jamison, PA 18929

                                  ARTICLE VII
                           RIGHTS AND DUTIES OF MEMBER

         7.1 Liability of Member. The Member shall not have any liability for
the obligations or liabilities of the Company except to the extent provided in
the Act.

         7.2 Representations and Warranties. The Member hereby represents and
warrants to the Company that: (a) the Member is an entity that has power to
enter into this Agreement and to perform its obligations hereunder and that the
persons executing this Agreement on behalf of the entity have the power to do
so; and (b) the Member is acquiring its interest in the Company for the Member's
own account as an investment and without an intent to distribute the interest.
The Member acknowledges that its interest in the Company has not been registered
under the Securities Act of 1933 or any state securities laws, and may not be
resold or transferred without appropriate registration or the availability of an
exemption from such requirements.

         7.3 Conflicts of Interest.

                  (a) The Member shall be entitled to enter into transactions
that may be considered to be competitive with the Company, it being expressly
understood that the Member may enter into transactions that are similar to the
transactions into which the Company may enter. Notwithstanding the foregoing,
the Member shall account to the Company and hold as trustee for it any Property,
profit, or benefit derived by the Member in the conduct and winding up of the
Company business or from a use or appropriation by the Member of the Company's
Property including information developed exclusively for the Company and
opportunities expressly offered to the Company.

                  (b) The Member does not violate a duty or obligation to the
Company merely because the Member's conduct furthers the Member's own interest.
No transaction with the Company shall be voidable solely because the Member has
a direct or indirect interest in the transaction if the transaction is fair and
reasonable to the Company.

                                  ARTICLE VIII
                                   MANAGEMENT

         8.1 Management of the Company.

                  (a) The Member shall be the managing member of the Company
(the "Managing Member") and, in such capacity, shall manage the Company in
accordance with this Agreement. The Managing Member is an agent of the Company's
business, and the actions of the Managing Member taken in such capacity and in
accordance with this Agreement shall bind the Company.

                                       10
<PAGE>

                  (b) The Managing Member shall have full, exclusive and
complete discretion to manage and control the business and affairs of the
Company, to make all decisions affecting the business and affairs of the Company
and to take all such actions as it deems necessary or appropriate to accomplish
the purpose of the Company as set forth herein. The Managing Member shall be the
sole person or entity with the power to bind the Company, except and to the
extent that such power is expressly delegated to any other person or entity by
the Managing Member, and such delegation shall not cause the Managing Member to
cease to be the Member or the Managing Member. There shall not be a "manager"
(within the meaning of the Act) of the Company.

                  (c) The Managing Member may appoint individuals ("OFFICERS")
with or without such titles as it may elect, including the titles of President,
Vice President, Treasurer, Secretary, and Assistant Secretary, to act on behalf
of the Company with such power and authority as the Managing Member may delegate
in writing to any such persons.

         8.2 Authority of Managing Member to Bind the Company. Only the Managing
Member, the officers and authorized agents of the Company shall have the
authority to bind the Company. Subject to Section 4.1, the Managing Member has
the power, on behalf of the Company, to do all things necessary or convenient to
carry out the business and affairs of the Company (as described in Article III),
including, without limitation:

                  (a) the institution, prosecution and defense of any Proceeding
in the Company's name;

                  (b) the entering into contracts;

                  (c) investment and reinvestment of the Company's funds, and
receipt and holding of Property as security for repayment;

                  (d) the conduct of the Company's business, the establishment
of Company offices, and the exercise of the powers of the Company;

                  (e) the appointment of employees and agents of the Company,
the defining of their duties and the establishment of their compensation, and
the dealing with tradespeople, accountants and attorneys, on such terms as the
Managers shall determine;

                  (f) the indemnification of any Person;

                  (g) the making of such elections under the Code and Tax
Regulations and other relevant tax laws as to the treatment of items of Company
income, gain, loss, deduction and credit, and as to all other relevant matters
as the Managing Member deems necessary or appropriate, including without
limitation, elections referred to in Section 754 of the Code, the determination
of which items of cash outlay shall be capitalized or treated as current
expenses, and the selection of the method of accounting and bookkeeping
procedures to be used by the Company;

                                       11
<PAGE>

                  (h) the amendment of any provision to this Agreement;
provided, however, that no provision of Article III and Article IV hereof, or
Sections 8.01(a), 8.01(b) and 5.04 of the SCTA shall be amended without the
consent of the Independent Directors of the Member.

         8.3 Actions of the Managing Member. The Managing Member has the power
to bind the Company as provided in this Article VIII. No Person dealing with the
Company shall have any obligation to inquire into the power or authority of the
Managing Member acting on behalf of the Company.

         8.4 Compensation of Managing Member. The Managing Member shall be
reimbursed for all reasonable expenses incurred in managing the Company and
shall be entitled to compensation, in an amount to be determined from time to
time by consent of the Member, in its sole discretion. The Managing Member shall
not be required to devote full time to the management of the Company business,
but only so much time as shall be necessary or appropriate for the proper
management of such business.

         8.5 Managing Member's Standard of Care. The Managing Member shall
discharge its duties to the Company in good faith and with that degree of care
that an ordinarily prudent person in a similar position would use under similar
circumstances. In discharging its duties, the Managing Member shall be fully
protected in relying in good faith upon the records required to be maintained
under Article VI and upon such information, opinions, reports or statements by
any Person as to matters the Managing Member reasonably believes are within such
other Person's professional or expert competence and who has been selected with
reasonable care by or on behalf of the Company, including information, opinions,
reports or statements as to the value and amount of the assets, liabilities,
profits or losses of the Company or any other facts pertinent to the existence
and amount of assets from which Distributions to the Member might properly be
paid. The Company shall indemnify and hold harmless the Managing Member against
any loss, damage or expense (including attorneys' fees) incurred by the Managing
Member as a result of any act performed or omitted on behalf of the Company or
in furtherance of the Company's interests without, however, relieving the
Managing Member of liability for failure to perform his or her duties in
accordance with the standards set forth herein. The satisfaction of any
indemnification and any holding harmless shall be from and limited to the
Company's Property.

         8.6 Resignation. Other than as set forth in Section 4.1(g) hereof, the
Member shall not resign or disassociate itself from the Company at any time
without first obtaining the effective appointment of a successor Member approved
by the Rating Agencies.

         8.7 Payment of Liabilities. The Member shall at all times pay its
liabilities from its own assets, and not have any liability to any Related
Company or any creditor thereof.

                                   ARTICLE IX
                                  CONTRIBUTIONS

         9.1 Membership Interest. The Member holds all of the Units of
Membership Interest.

                                       12
<PAGE>

         9.2 Contributions. The Member is not required to make any Capital
Contribution to the Company.

         9.3 Withdrawal. The Member shall not be entitled to withdraw any part
of its Capital Contribution or to receive any distribution from the Company,
except after payment in full of all outstanding debt securities of the Company
or otherwise as specifically provided in this Agreement.

         9.4 Interest. The Member shall not be entitled to interest on any
Capital Contribution or on any profits retained by the Company.

         9.5 No Personal Liability. The Member shall not have any liability for
the obligations or liabilities of the Company except to the extent provided in
the Act.

                                   ARTICLE X
                          ALLOCATIONS AND DISTRIBUTIONS

         10.1 Taxable Income Allocations. Profits and losses, and each item of
Company income, gain, loss, deduction, credit and tax preference with respect
thereto, for each Fiscal Year (or shorter period in respect of which such items
are to be allocated) shall be allocated to the Member; provided, however, if it
is determined that there are two or more members of the Company, then such items
shall be allocated among the members in accordance with their respective
economic interests in the Company, determined generally by taking into account
the priorities of cash distributions, the actual distributions and the economic
allocation of losses and other expenses among the Members as determined in
accordance with Sections 3.04(b), 3.04(c) and 6.06 of the Indenture as
applicable.

         10.2 Distributions. Distributions to the Company shall be made to the
Member or its designee in accordance with Section 3.04(b) and 6.06 of the
Indenture, as applicable.

                                   ARTICLE XI
                         TRANSFER OF MEMBERSHIP INTEREST

         11.1 Compliance with Securities Laws. No Unit of Membership Interest
has been registered under the Securities Act of 1933, as amended, or under any
applicable state securities laws. The Member may not transfer (a transfer, for
purposes of this Agreement, shall be deemed to include, but not be limited to,
any sale, transfer, assignment, pledge, creation of a security interest or other
Disposition) all or any part of the Member's Units of Membership Interest,
except upon compliance with the applicable federal and state securities laws.
The Managing Member shall have no obligation to register the Member's Units of
Membership Interest under the Securities Act of 1933, as amended, or under any
applicable state securities laws, or to make any exemption therefrom available
to the Member.

         11.2 Transfer of Economic Interest. The right to receive allocations of
profits and losses and to receive Distributions may not be transferred in whole
or in part unless the following terms and conditions have been satisfied:

                                       13
<PAGE>

         The transferor shall have:

                  (a) assumed all costs incurred by the Company in connection
with the transfer;

                  (b) furnished the Company with a written opinion of counsel,
satisfactory in form and substance to counsel for the Company, that such
transfer complies with applicable federal and state securities laws and this
Agreement and that such transfer, for federal income tax purposes, will not
cause the termination of the Company under Section 708(b) of the Code, cause the
Company to be treated as an association taxable as a corporation for income tax
purposes or otherwise adversely affect the Company or the Member; and

                  (c) complied with such other conditions as the Managing Member
may reasonably require from time to time.

Transfers will be recognized by the Company as effective only upon the close of
business on the last day of the calendar month following satisfaction of the
above conditions. Any transfer in contravention of this Article XI and any
transfer which if made would cause a termination of the Company for federal
income tax purposes under Section 708(b) of the Code shall be void ab initio and
ineffectual and shall not bind the Company.

         11.3 Transfer of Membership Interest.

                  (a) The Member may not sell, assign, encumber, transfer or
otherwise Dispose of any Units of its Membership Interest (or take or omit to
take any action, filing, election or other action that could result in a deemed
sale, assignment, encumbrance, transfer or other Disposition); provided, however
that the Member may make such a transfer to an Affiliate of the Member, which
Affiliate shall have a special purpose charter and bylaws substantially similar
in all material respects to those of the Member. Any attempted Disposition not
in accordance with this Agreement shall be void.

                  (b) Upon the transfer of Units and admission of an additional
Member in accordance with this Agreement, this Agreement shall be amended to
reflect the admission of the substitute Member, and the Member shall take any
action required to record to reflect such admission.

         11.4 Status of Transferee. A transferee of a Unit of Membership
Interest shall be entitled to receive that share of Profits, Losses and
Distributions, and the return of any Capital Contribution to which the
transferor would otherwise be entitled with respect to the interest transferred,
and shall have the rights of the transferring Member of the Company under the
Act or this Agreement. The Company shall also, if the transferee and transferor
jointly advise the Company in writing of a transfer of the Unit of Membership
Interest, furnish the transferee with pertinent tax information at the end of
each Fiscal Year.

         11.5 Dissolution or Bankruptcy of the Member. Upon the dissolution or
adjudication of bankruptcy of the Member, the Member's successors or assigns
shall have all the rights of the Member for the purpose of settling or managing
the Member's estate.

                                       14
<PAGE>

                                  ARTICLE XII
                           DISSOLUTION AND WINDING UP

         12.1 Dissolution. The Company shall be dissolved and its affairs wound
up, upon the first to occur of any of the following events (each of which shall
constitute a Dissolution Event):

                  (a) the expiration of the Term of this Agreement, unless the
Company is continued with the consent of the Member, in its sole discretion; or

                  (b) the determination in writing of the Managing Member to
dissolve and terminate the Company; provided, however, that the Managing Member
shall not, and the Managing Member hereby agrees not to, take any action to
dissolve or terminate the Company prior to the expiration of the Term;

                  (c) the entry of a decree of judicial dissolution pursuant to
the Act; or

                  (d) the occurrence of an Event of Bankruptcy as to a Member or
the resignation, expulsion or dissolution of a Member or the occurrence of any
other event that terminates the membership of a Member, unless, within 90 days
of such event, there is at least one remaining Member and the remaining Members
unanimously agree to continue the business of the Company, in which event the
Company shall not be dissolved and the Company and the business of the Company
shall be continued; provided, however, that if any Member is a partnership or a
limited liability company on the date of such occurrence, the dissolution of
such Member as a result of the dissolution, termination, resignation, death,
incompetence, removal or Event of Bankruptcy of a partner or member in such
partnership or limited liability company, as the case may be, shall not be an
event of dissolution of this Company if the business of such Member is continued
by its remaining partner(s) or member(s), as the case may be, either alone or
with additional partners or members, and such Member and such partners or
members comply with any other applicable requirements of this Agreement; or

                  (e) the passage of 30 days after the sale or other disposition
of all or substantially all the assets of the Company (except that if the
Company receives an installment obligation as consideration for such sale, the
Company shall continue, unless sooner dissolved under the provisions of this
Agreement, until such time as such note or notes are paid in full).

                  (f) Upon the dissolution of the Company for any reason, the
Member shall proceed promptly to wind up the affairs of and liquidate the
Company; provided, however, that if the Notes are outstanding, the Member shall
not liquidate the assets of the Company securing the Notes, except as permitted
by the deed of trust and assignment of leases pursuant to which such assets were
encumbered, without the consent of the secured party under such document, which
may continue to exercise all of its rights under such document and shall have
complete and independent ability to retain such assets until the Notes have been
paid in full or otherwise completely discharged pursuant to the Indenture.
Subject to the foregoing, the Member shall have reasonable discretion to
determine the time, manner and terms of any sale or sales of the Company's
property pursuant to such liquidation.

                                       15
<PAGE>

         12.2 Effect of Dissolution. Upon dissolution, the Company shall not be
terminated and shall continue until the winding up of the affairs of the Company
is completed and a certificate of dissolution has been issued by the Secretary
of State of Delaware.

         12.3 Distribution of Assets on Dissolution. Upon the winding up of the
Company, the Managing Member shall take full account of the assets and
liabilities of the Company, shall liquidate the assets (unless the Managing
Member determines that a distribution of any of the Company's Property in-kind
would be more advantageous to the Member than the sale thereof) as promptly as
is consistent with obtaining the fair value thereof, and shall apply and
distribute the proceeds therefrom in the following order:

                  (a) first, to the payment of the debts and liabilities of the
Company to creditors, including the Member, if it is a creditor, to the extent
permitted by law, in satisfaction of such debts and liabilities, and to the
payment of necessary expenses of liquidation;

                  (b) second, to the setting up of any reserves which the
Managing Member may deem necessary or appropriate for any anticipated
obligations or contingencies of the Company arising out of or in connection with
the operation or business of the Company. Such reserves may be paid over by the
Managing Member to an escrow agent or trustee selected by the Managing Member to
be disbursed by such escrow agent or trustee in payment of any of the
aforementioned obligations or contingencies and, if any balance remains at the
expiration of such period as the Managing Member shall deem advisable, shall be
distributed by such escrow agent or trustee in the manner hereinafter provided;

                  (c) then, to the Member.

Liquidation proceeds shall be paid within 60 days of the end of the Company's
taxable year in which the liquidation occurs. Such distributions shall be in
cash or Property (which need not be distributed proportionately) or partly in
both, as determined by the Managing Member.

If at the time of liquidation the Managing Member shall determine that an
immediate sale of some or all of the Company's Property would cause undue loss
to the Member, the Managing Member may, in order to avoid such loss, defer
liquidation.

         12.4 Winding Up and Filing Articles of Dissolution. Upon the
commencement of the winding up of the Company, articles of dissolution shall be
delivered by the Company to the Secretary of the State of Delaware for filing.
The articles of dissolution shall set forth the information required by the Act.
The winding up of the Company shall be completed when all debts, liabilities,
and obligations of the Company have been paid and discharged or reasonably
adequate provision therefor has been made, and all of the remaining Property of
the Company has been distributed to the Member.

                                  ARTICLE XIII
                                  MISCELLANEOUS

         13.1 Notices. Notices to the Member shall be sent to the Principal
Office of the Company. Any notice or other communication required or permitted
hereunder shall be in

                                       16
<PAGE>

writing, and shall be deemed to have been given with receipt confirmed if and
when delivered personally, given by prepaid telegram or mailed first class,
postage prepaid, delivered by courier, or sent by facsimile, to the Member at
such address.

         13.2 Headings. All Article and section headings in this Agreement are
for convenience of reference only and are not intended to qualify the meaning of
any Article or section.

         13.3 Entire Agreement. This Agreement constitutes the entire agreement
between the parties and supersedes any prior agreement or understanding between
them respecting the subject matter of this Agreement.

         13.4 Binding Agreement. This Agreement shall be binding upon, and inure
to the benefit of, the parties hereto and their permitted successors and
assigns.

         13.5 Saving Clause. If any provision of this Agreement, or the
application of such provision to any Person or circumstance, shall be held
invalid, the remainder of this Agreement, or the application of such provision
to Persons or circumstances other than those as to which it is held invalid,
shall not be affected thereby. If the operation of any provision of this
Agreement would contravene the provisions of the Act, such provision shall be
void and ineffectual.

         13.6 Counterparts. This Agreement may be executed in several
counterparts, and all so executed shall constitute one agreement, binding on all
the parties hereto, even though all parties are not signatory to the original or
the same counterpart. Any counterpart of either this Agreement shall for all
purposes be deemed a fully executed instrument.

         13.7 Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware.

         13.8 No Membership Intended for Nontax Purposes. The Member has formed
the Company under the Act, and expressly does not intend hereby to form a
partnership, either general or limited, under the Delaware partnership laws.

         13.9 No Rights of Creditors and Third Parties under Agreement. This
Agreement is entered into between the Company and the Member for the exclusive
benefit of the Company, its Member, and their successors and assignees. This
Agreement is expressly not intended for the benefit of any creditor of the
Company or any other Person. Except and only to the extent provided by
applicable statute, no such creditor or any third party shall have any rights
under this Agreement or any agreement between the Company and the Member with
respect to any Capital Contribution or otherwise.

         13.10 General Interpretive Principles. For purposes of this Agreement,
except as otherwise expressly provided or unless the context otherwise requires:

                  (a) the terms defined in this Agreement include the plural as
well as the singular, and the use of any gender herein shall be deemed to
include the other gender;

                                       17
<PAGE>

                  (b) accounting terms not otherwise defined herein have the
meanings given to them in the United States in accordance with generally
accepted accounting principles;

                  (c) references herein to "Sections", "paragraphs", and other
subdivisions without reference to a document are to designated Sections,
paragraphs and other subdivisions of this Agreement;

                  (d) a reference to a paragraph without further reference to a
Section is a reference to such paragraph as contained in the same Section in
which the reference appears, and this rule shall also apply to other
subdivisions;

                  (e) the words "herein", "hereof", "hereunder" and other words
of similar import refer to this Agreement as a whole and not to any particular
provision; and

                  (f) the term "include" or "including" shall mean without
limitation by reason of enumeration.

                            [Signature page follows]

                                       18
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals as of the Effective Date.

                                                 DVI Receivables Corp. VIII

                                                 By: /s/ Steven R. Garfinkel
                                                     ------------------------
                                                 Name:   Steven R. Garfinkel
                                                 Title:  EVP and CFO

                                                 DVI Receivables XIX, L.L.C.

                                                 By:  DVI Receivables Corp. VIII
                                                      Its Managing Member

                                                 By: /s/ Steven R. Garfinkel
                                                     ------------------------
                                                 Name:   Steven R. Garfinkel
                                                 Title:  EVP and CFO

                                   LIMITED LIABILITY COMPANY OPERATING AGREEMENT

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