Document:

exv10w1

 

Exhibit 10.1

INCREMENTAL FACILITY AMENDMENT

          This Incremental Facility Amendment (this “Amendment”) dated March 28, 2007, among
SELECT MEDICAL CORPORATION, a Delaware corporation (the “Borrower”), SELECT MEDICAL
HOLDINGS CORPORATION (“Holdings”), the subsidiaries signatory hereto, each Lender signatory
hereto (the “Additional Term Lenders”) and JPMORGAN CHASE BANK, N.A., as Administrative
Agent, is an Incremental Facility Amendment within the meaning of the CREDIT AGREEMENT dated as of
February 24, 2005 (as amended, the “Credit Agreement”), among the Borrower, Holdings, the
LENDERS party thereto from time to time, JPMORGAN CHASE BANK, N.A., as Administrative Agent and
Collateral Agent, and WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication Agent. Capitalized terms
used and not otherwise defined herein shall have the meanings assigned to them in the Credit
Agreement (as amended hereby).

          WHEREAS, pursuant to Section 2.20 of the Credit Agreement, the Borrower may from time to time
request Incremental Term Loans in an aggregate amount not to exceed $100,000,000, subject to the
terms and conditions set forth therein;

          WHEREAS, the Borrower desires to borrow $100,000,000 aggregate principal amount of Additional
Tranche B Term Loans (as defined below), which shall constitute Incremental Term Loans within the
meaning of the Credit Agreement;

          WHEREAS, the Additional Term Lender has agreed, subject to the terms and conditions set forth
herein, to make Additional Tranche B Term Loans to the Borrower in an aggregate amount equal to its
New Tranche B Commitment (as defined below).

          NOW, THEREFORE:

          SECTION 1. Incremental Facility Amendment.

          (a) The Borrower and each Additional Term Lender party hereto hereby agree that:

          (i) the Commitment (the “New Tranche B Commitment”) of each Additional Term
Lender and the aggregate amount of Incremental Term Loans which shall be borrowed (the
“Additional Tranche B Term Loans”) pursuant to this Amendment shall be in an amount
equal to up to $100,000,000 (provided that the Borrower shall only be allowed one draw under
this Agreement);

          (ii) the Additional Tranche B Term Loans shall be made on the first date on which the
conditions set forth in Sections 2.20 and 4.02 of the Credit Agreement and Section 4 hereof
have been satisfied in full (the “Incremental Facility Effective Date”), which shall
be the Incremental Facility Closing Date with respect to the New Tranche B Commitments; and

          (iii) the Applicable Rate for the Additional Tranche B Term Loans shall at all times be
equal to 2.00% per annum for Eurodollar Loans and 1.00% per annum for ABR Loans.

          (b) Each Additional Term Lender and the Borrower hereby agree that each Additional Tranche B
Term Loan funded pursuant to this Amendment will have the same ranking and all other terms as the
Tranche B Term Loans, except that the Additional Tranche B Term Loans shall accrue interest from
and including the Incremental Facility Effective Date, and, from and
after the Incremental Facility

 

 

Effective Date, each Additional Term Lender will be a Lender and a Tranche B Lender for
any and all purposes under the Credit Agreement.

          (c) To give effect to the Additional Tranche B Term Loans, the parties hereto agree that the
table set forth in Section 2.10(a) of the Credit Agreement is hereby amended by adding $250,000 to
each principal payment due on each payment date beginning with June 30, 2007 through December 31,
2010 and by adding $24,062,500 to the principal payment due each payment date beginning with March
31, 2011 through the Tranche B Maturity Date.

          (d) The Commitments of each Additional Term Lender hereunder shall terminate if the Additional
Tranche B Term Loans are not borrowed in full by the fifth Business Day after the date hereof.

          SECTION 2. Term Loan Amendment. The definition of “Applicable Rate” in Section 1.01
of the Credit Agreement is hereby amended by deleting the second paragraph thereof in its entirety
and replacing it with the following:

          “The Applicable Rate for Tranche B Term Loans shall at all times be equal to 2.00% per annum
for Eurodollar Loans and 1.00% per annum for ABR Loans.”

          SECTION 3. Conditions to Effectiveness. The effectiveness of this amendment is
conditioned upon the following:

          (a) The Administrative Agent shall have received counterparts of this Amendment that, when
taken together, bear the signatures of Borrower, each Subsidiary Loan Party and (i) with respect to
the amendments described in Section 1 hereof, each Additional Term Lender and (ii) with respect to
the amendment described in Section 2 hereof, a number of Tranche B Lenders representing more than
50% of the outstanding Tranche B Term Loans.

          (b) The Administrative Agent shall have received, on behalf of itself and the Lenders, an
opinion of Dechert LLP, counsel for the Borrower, addressed to the Administrative Agent and the
Lenders and dated the Incremental Facility Effective Date, addressing such matters as the
Administrative Agent may reasonably request.

          (c) The Administrative Agent shall have received a certificate of the Borrower dated as of the
Incremental Facility Effective Date signed by the Chief Financial Officer of the Borrower
certifying that the conditions set forth in Section 4.02 of the Credit Agreement have been
satisfied in full with respect to the Additional Tranche B Term Loans.

          (d) All corporate and other proceedings taken or to be taken in connection with this Amendment
and all documents incidental thereto, whether or not referred to herein, shall be reasonably
satisfactory in form and substance to the Administrative Agent.

          SECTION 4. Representations and Warranties. The Borrower hereby represents and
warrants that as of the date hereof and after giving effect to the Borrowing of Additional Tranche
B Term Loans as contemplated hereby:

     (i) the representations and warranties of each Loan Party set forth in the Loan
Documents are true and correct in all material respects on and as of the date of hereof
(except to the extent that any representation and warranty expressly relates to an earlier
date, in which case

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such representation and warranty shall have been true and correct in all material
respects as of such earlier date);

     (ii) no Default has occurred and is continuing; and

     (iii) the net proceeds of the Additional Tranche B Term Loans shall be used by the
Borrower for working capital and general corporate purposes (including Permitted
Acquisitions).

          SECTION 5. Affirmations

          (a) Each Loan Party signatory hereto hereby (i) expressly acknowledges the terms of this
Amendment, (ii) ratifies and affirms its obligations under the Loan Documents executed by such Loan
Party, and (iii) agrees such Loan Documents remain in full force and effect.

          (b) Each Loan Party signatory hereto hereby reaffirms, as of the Incremental Facility
Effective Date, (i) the covenants and agreements contained in each Loan Document to which it is a
party, including, in each case, such covenants and agreements as in effect immediately after giving
effect to this Amendment and the transactions contemplated thereby, and (ii) its guarantee of
payment of the Obligations pursuant to the Collateral Agreement and the Liens granted under the
Security Documents continue to secure payment of the Obligations.

          (c) Each Loan Party signatory hereto hereby acknowledges and agrees that the acceptance by the
Administrative Agent of this document shall not be construed in any manner to establish any course
of dealing on the Administrative Agent’s or any Lender’s part, including the providing of any
notice or the requesting of any acknowledgment not otherwise expressly provided for in any Loan
Document with respect to any future amendment, waiver, supplement or other modification to any Loan
Document or any arrangement contemplated by any Loan Document.

          (d) Each Loan Party signatory hereto hereby represents and warrants that, immediately after
giving effect to this Amendment, each Loan Document, in each case as modified by this Amendment
(where applicable), to which it is a party continues to be a legal, valid and binding obligation of
the undersigned, enforceable against such party in accordance with its terms (except, in any case,
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally and by principles of equity).

          SECTION 6. Reference to and Effect on the Credit Agreement and other Loan Documents.
On and after the Incremental Facility Effective Date, each reference in the Credit Agreement to
“this Agreement,” “hereunder,” “hereof” or words of like import referring the Credit Agreement, and
each reference in each of the Loan Documents to “the Credit Agreement,” “thereunder,” “thereof” or
words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit
Agreement, as supplemented by this Amendment. The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power
or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of
any provision of any of the Loan Documents. From and after the Incremental Facility Effective
Date, the Additional Tranche B Term Loans shall be included to the same extent as the existing
Tranche B Term Loans in any determination of the “Required Lenders” under the Credit Agreement.

          SECTION 7. Execution in Counterparts. This Amendment may be executed in any number of
counterparts (and by different parties hereto in separate counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
Delivery of an

-3-

 

executed counterpart of a signature page to this Amendment by telecopy shall be effective as
delivery of a manually executed counterpart of this Amendment.

          SECTION 8. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

[Signature Page Follows]

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S-1

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
authorized officers as of the date set forth above.

	 	 	 	 	 
	 	SELECT MEDICAL CORPORATION,

as the Borrower

 	 
	 	By:  	/s/ Martin F. Jackson
 	 
	 	 	Name:  	Martin F. Jackson 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	SELECT MEDICAL HOLDINGS CORPORATION

 	 
	 	By:  	/s/ Martin F. Jackson
 	 
	 	 	Name:	Martin F. Jackson
	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 
	 	EACH OF THE SUBSIDIARIES

LISTED ON SCHEDULE I HERETO

 	 
	 	By:  	/s/ Martin F. Jackson
 	 
	 	 	Name:  	Martin F. Jackson 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Stephanie Parker
 	 
	 	 	Name:  	Stephanie Parker 	 
	 	 	Title:  	Executive Director 	 

-2-

 

	 	 	 	 	 

Schedule I

to the

Incremental Facility

Amendment

SUBSIDIARY LOAN PARTIES

	 	1.	 	American Transitional Hospitals, Inc.
	 
	 	2.	 	Argosy Health, LLC
	 
	 	3.	 	Arizona Rehab Provider Network, Inc.
	 
	 	4.	 	Athens Sports Medicine Clinic, Inc.
	 
	 	5.	 	Atlantic Rehabilitation Services, Inc.
	 
	 	6.	 	Buendel Physical Therapy, Inc.
	 
	 	7.	 	C.E.R. — West, Inc.
	 
	 	8.	 	C.O.A.S.T. Institute Physical Therapy, Inc.
	 
	 	9.	 	CCISUB, Inc.
	 
	 	10.	 	Cenla Physical Therapy & Rehabilitation Agency, Inc.
	 
	 	11.	 	Center for Evaluation & Rehabilitation, Inc.
	 
	 	12.	 	CenterTherapy, Inc.
	 
	 	13.	 	Community Rehab Centers of Massachusetts, Inc.
	 
	 	14.	 	Crowley Physical Therapy Clinic, Inc.
	 
	 	15.	 	Douglas Avery & Associates, Ltd.
	 
	 	16.	 	Elk County Physical Therapy, Inc.
	 
	 	17.	 	Fine, Bryant & Wah, Inc.
	 
	 	18.	 	Gallery Physical Therapy Center, Inc.
	 
	 	19.	 	Georgia Physical Therapy of West Georgia, Inc.
	 
	 	20.	 	Georgia Physical Therapy, Inc.
	 
	 	21.	 	GP Therapy, L.L.C.
	 
	 	22.	 	Greater Sacramento Physical Therapy Associates, Inc.
	 
	 	23.	 	Gulf Breeze Physical Therapy, Inc.
	 
	 	24.	 	Hand Therapy and Rehabilitation Associates, Inc.
	 
	 	25.	 	Hand Therapy Associates, Inc.
	 
	 	26.	 	Hawley Physical Therapy, Inc.
	 
	 	27.	 	Hudson Physical Therapy Services, Inc.
	 
	 	28.	 	Indianapolis Physical Therapy and Sports Medicine, Inc.

 

 

	 	29.	 	Intensiva Healthcare Corporation
	 
	 	30.	 	Intensiva Hospital of Greater St. Louis, Inc.
	 
	 	31.	 	Joyner Sportsmedicine Institute, Inc.
	 
	 	32.	 	Kentucky Rehabilitation Services, Inc.
	 
	 	33.	 	Kessler Assisted Living Corporation
	 
	 	34.	 	Kessler Institute for Rehabilitation, Inc.
	 
	 	35.	 	Kessler Occupational Medicine Centers, Inc.
	 
	 	36.	 	Kessler Orthotic & Prosthetic Services, Inc.
	 
	 	37.	 	Kessler Physical Therapy & Rehabilitation, Inc.
	 
	 	38.	 	Kessler Professional Services, LLC
	 
	 	39.	 	Kessler Rehab Centers, Inc.
	 
	 	40.	 	Kessler Rehabilitation Corporation
	 
	 	41.	 	Kessler Rehabilitation of Maryland, Inc.
	 
	 	42.	 	Kessler Rehabilitation Services, Inc.
	 
	 	43.	 	Metro Rehabilitation Services, Inc.
	 
	 	44.	 	Michigan Therapy Centre, Inc.
	 
	 	45.	 	Monmouth Rehabilitation, Inc.
	 
	 	46.	 	Northside Physical Therapy, Inc.
	 
	 	47.	 	NovaCare Occupational Health Services, Inc.
	 
	 	48.	 	NovaCare Outpatient Rehabilitation East, Inc.
	 
	 	49.	 	NovaCare Outpatient Rehabilitation, Inc.
	 
	 	50.	 	NovaCare Rehabilitation, Inc.
	 
	 	51.	 	NovaCare Rehabilitation of Ohio, Inc.
	 
	 	52.	 	P.T. Services Rehabilitation, Inc.
	 
	 	53.	 	Peter Trailov R.P.T. Physical Therapy Clinic, Orthopedic Rehabilitation & Sports Medicine, Ltd.
	 
	 	54.	 	Physical Therapy Associates, Inc.
	 
	 	55.	 	Physical Therapy Institute, Inc.
	 
	 	56.	 	Physical Therapy Services of the Jersey Cape, Inc.
	 
	 	57.	 	Pro Active Therapy of Ahoskie, Inc.
	 
	 	58.	 	Pro Active Therapy of Greenville, Inc.
	 
	 	59.	 	Pro Active Therapy of North Carolina, Inc.
	 
	 	60.	 	Pro Active Therapy of Rocky Mount, Inc.
	 
	 	61.	 	Pro Active Therapy of South Carolina, Inc.
	 
	 	62.	 	Pro Active Therapy of Virginia, Inc.

 

 

	 	63.	 	Pro Active Therapy, Inc.
	 
	 	64.	 	Professional Therapeutic Services, Inc.
	 
	 	65.	 	Quad City Management, Inc.
	 
	 	66.	 	RCI (Colorado), Inc.
	 
	 	67.	 	RCI (Exertec), Inc.
	 
	 	68.	 	RCI (Michigan), Inc.
	 
	 	69.	 	RCI (S.P.O.R.T.), Inc.
	 
	 	70.	 	RCI (WRS), Inc.
	 
	 	71.	 	Rebound Oklahoma, Inc.
	 
	 	72.	 	Redwood Pacific Therapies, Inc.
	 
	 	73.	 	Rehab Provider Network — East I, Inc.
	 
	 	74.	 	Rehab Provider Network — East II, Inc.
	 
	 	75.	 	Rehab Provider Network — Indiana, Inc.
	 
	 	76.	 	Rehab Provider Network — Michigan, Inc.
	 
	 	77.	 	Rehab Provider Network — New Jersey, Inc.
	 
	 	78.	 	Rehab Provider Network — New York, Inc.
	 
	 	79.	 	Rehab Provider Network — Ohio, Inc.
	 
	 	80.	 	Rehab Provider Network — Pennsylvania, Inc.
	 
	 	81.	 	Rehab Provider Network of Colorado, Inc.
	 
	 	82.	 	Rehab Provider Network of Florida, Inc.
	 
	 	83.	 	Rehab Provider Network of Nevada, Inc.
	 
	 	84.	 	Rehab Provider Network of New Mexico, Inc.
	 
	 	85.	 	Rehab Provider Network of North Carolina, Inc.
	 
	 	86.	 	Rehab Provider Network of South Carolina, Inc.
	 
	 	87.	 	Rehab Provider Network of Texas, Inc.
	 
	 	88.	 	Rehab Provider Network of Virginia, Inc.
	 
	 	89.	 	RehabClinics (GALAXY), Inc.
	 
	 	90.	 	RehabClinics (PTA), Inc.
	 
	 	91.	 	RehabClinics (SPT), Inc.
	 
	 	92.	 	RehabClinics Abilene, Inc.
	 
	 	93.	 	RehabClinics Dallas, Inc.
	 
	 	94.	 	RehabClinics, Inc.
	 
	 	95.	 	RPN of NC, Inc.
	 
	 	96.	 	S.T.A.R.T., Inc.

 

 

	 	97.	 	Select Air II, Inc.
	 
	 	98.	 	Select Employment Services, Inc.
	 
	 	99.	 	Select Hospital Investors, Inc.
	 
	 	100.	 	Select Medical of Kentucky, Inc.
	 
	 	101.	 	Select Medical of Maryland, Inc.
	 
	 	102.	 	Select Medical of New York, Inc.
	 
	 	103.	 	Select Medical Rehabilitation Clinics, Inc.
	 
	 	104.	 	Select Medical Rehabilitation Services, Inc.
	 
	 	105.	 	Select Medical Property Ventures, LLC
	 
	 	106.	 	Select Provider Networks, Inc.
	 
	 	107.	 	Select Rehabilitation Management Services, Inc.
	 
	 	108.	 	Select Software Ventures, LLC
	 
	 	109.	 	Select Specialty Hospital — Akron/SHS, Inc.
	 
	 	110.	 	Select Specialty Hospital — Ann Arbor, Inc.
	 
	 	111.	 	Select Specialty Hospital — Arizona, Inc.
	 
	 	112.	 	Select Specialty Hospital — Augusta/UH, Inc.
	 
	 	113.	 	Select Specialty Hospital — Baton Rouge, Inc.
	 
	 	114.	 	Select Specialty Hospital — Battle Creek, Inc.
	 
	 	115.	 	Select Specialty Hospital — Beech Grove, Inc.
	 
	 	116.	 	Select Specialty Hospital — Bloomington, Inc.
	 
	 	117.	 	Select Specialty Hospital — Brevard, Inc.
	 
	 	118.	 	Select Specialty Hospital — Broward, Inc.
	 
	 	119.	 	Select Specialty Hospital — Central Detroit, Inc.
	 
	 	120.	 	Select Specialty Hospital — Charleston, Inc.
	 
	 	121.	 	Select Specialty Hospital — Cincinnati, Inc.
	 
	 	122.	 	Select Specialty Hospital — Colorado Springs, Inc.
	 
	 	123.	 	Select Specialty Hospital — Columbus/East, Inc.
	 
	 	124.	 	Select Specialty Hospital — Columbus, Inc.
	 
	 	125.	 	Select Specialty Hospital — Columbus/University, Inc.
	 
	 	126.	 	Select Specialty Hospital — Conroe, Inc.
	 
	 	127.	 	Select Specialty Hospital — Dade, Inc.
	 
	 	128.	 	Select Specialty Hospital — Dallas, Inc.
	 
	 	129.	 	Select Specialty Hospital — Danville, Inc.
	 
	 	130.	 	Select Specialty Hospital — Denver, Inc.

 

 

	 	131.	 	Select Specialty Hospital — Des Moines, Inc.
	 
	 	132.	 	Select Specialty Hospital — Durham, Inc.
	 
	 	133.	 	Select Specialty Hospital — Duval, Inc.
	 
	 	134.	 	Select Specialty Hospital — Erie, Inc.
	 
	 	135.	 	Select Specialty Hospital — Eastern Iowa, Inc.
	 
	 	136.	 	Select Specialty Hospital — Evansville, Inc.
	 
	 	137.	 	Select Specialty Hospital — Flint, Inc.
	 
	 	138.	 	Select Specialty Hospital — Fort Smith, Inc.
	 
	 	139.	 	Select Specialty Hospital — Fort Wayne, Inc.
	 
	 	140.	 	Select Specialty Hospital — Gadsden, Inc.
	 
	 	141.	 	Select Specialty Hospital — Gainesville, Inc.
	 
	 	142.	 	Select Specialty Hospital — Greensboro, Inc.
	 
	 	143.	 	Select Specialty Hospital — Greensburg, Inc.
	 
	 	144.	 	Select Specialty Hospital — Grosse Pointe, Inc.
	 
	 	145.	 	Select Specialty Hospital — Gulf Coast, Inc.
	 
	 	146.	 	Select Specialty Hospital — Honolulu, Inc.
	 
	 	147.	 	Select Specialty Hospital — Houston, Inc.
	 
	 	148.	 	Select Specialty Hospital — Huntsville, Inc.
	 
	 	149.	 	Select Specialty Hospital — Indianapolis, Inc.
	 
	 	150.	 	Select Specialty Hospital — Jackson, Inc.
	 
	 	151.	 	Select Specialty Hospital — Jefferson County, Inc.
	 
	 	152.	 	Select Specialty Hospital — Johnstown, Inc.
	 
	 	153.	 	Select Specialty Hospital — Kalamazoo, Inc.
	 
	 	154.	 	Select Specialty Hospital — Kansas City, Inc.
	 
	 	155.	 	Select Specialty Hospital — Knoxville, Inc.
	 
	 	156.	 	Select Specialty Hospital — Lake, Inc.
	 
	 	157.	 	Select Specialty Hospital — Lancaster, Inc.
	 
	 	158.	 	Select Specialty Hospital — Lansing, Inc.
	 
	 	159.	 	Select Specialty Hospital — Lee, Inc.
	 
	 	160.	 	Select Specialty Hospital — Leon, Inc.
	 
	 	161.	 	Select Specialty Hospital — Lexington, Inc.
	 
	 	162.	 	Select Specialty Hospital — Little Rock, Inc.
	 
	 	163.	 	Select Specialty Hospital — Little Rock/BMC, Inc.
	 
	 	164.	 	Select Specialty Hospital — Longview, Inc.

 

 

	 	165.	 	Select Specialty Hospital — Louisville, Inc.
	 
	 	166.	 	Select Specialty Hospital — Macomb County, Inc.
	 
	 	167.	 	Select Specialty Hospital — Madison, Inc.
	 
	 	168.	 	Select Specialty Hospital — Manatee
	 
	 	169.	 	Select Specialty Hospital — Marion, Inc.
	 
	 	170.	 	Select Specialty Hospital — McKeesport, Inc.
	 
	 	171.	 	Select Specialty Hospital — Memphis, Inc.
	 
	 	172.	 	Select Specialty Hospital — Midland, Inc.
	 
	 	173.	 	Select Specialty Hospital — Milwaukee, Inc.
	 
	 	174.	 	Select Specialty Hospital — Nashville, Inc.
	 
	 	175.	 	Select Specialty Hospital — New Orleans, Inc.
	 
	 	176.	 	Select Specialty Hospital — Newark, Inc.
	 
	 	177.	 	Select Specialty Hospital — North Atlanta, Inc.
	 
	 	178.	 	Select Specialty Hospital — North Knoxville, Inc.
	 
	 	179.	 	Select Specialty Hospital — Northeast New Jersey, Inc.
	 
	 	180.	 	Select Specialty Hospital — Northeast Ohio, Inc.
	 
	 	181.	 	Select Specialty Hospital — Northwest Detroit, Inc.
	 
	 	182.	 	Select Specialty Hospital — Northwest Indiana, Inc.
	 
	 	183.	 	Select Specialty Hospital — Oklahoma City, Inc.
	 
	 	184.	 	Select Specialty Hospital — Oklahoma City/East Campus, Inc.
	 
	 	185.	 	Select Specialty Hospital — Omaha, Inc.
	 
	 	186.	 	Select Specialty Hospital — Orlando, Inc.
	 
	 	187.	 	Select Specialty Hospital — Palm Beach, Inc.
	 
	 	188.	 	Select Specialty Hospital — Panama City, Inc.
	 
	 	189.	 	Select Specialty Hospital — Paramus, Inc.
	 
	 	190.	 	Select Specialty Hospital — Pensacola, Inc.
	 
	 	191.	 	Select Specialty Hospital — Phoenix, Inc.
	 
	 	192.	 	Select Specialty Hospital — Pine Bluff, Inc.
	 
	 	193.	 	Select Specialty Hospital — Pittsburgh, Inc.
	 
	 	194.	 	Select Specialty Hospital — Pittsburgh/UPMC, Inc.
	 
	 	195.	 	Select Specialty Hospital — Plainfield, Inc.
	 
	 	196.	 	Select Specialty Hospital — Pontiac, Inc.
	 
	 	197.	 	Select Specialty Hospital — Quad Cities, Inc.
	 
	 	198.	 	Select Specialty Hospital — Reno, Inc.

 

 

	 	199.	 	Select Specialty Hospital — Riverview, Inc.
	 
	 	200.	 	Select Specialty Hospital — St. Lucie, Inc.
	 
	 	201.	 	Select Specialty Hospital — Saginaw, Inc.
	 
	 	202.	 	Select Specialty Hospital — San Antonio, Inc.
	 
	 	203.	 	Select Specialty Hospital — Sarasota, Inc.
	 
	 	204.	 	Select Specialty Hospital — Savannah, Inc.
	 
	 	205.	 	Select Specialty Hospital — Sioux Falls, Inc.
	 
	 	206.	 	Select Specialty Hospital — South Dallas, Inc.
	 
	 	207.	 	Select Specialty Hospital — Springfield, Inc.
	 
	 	208.	 	Select Specialty Hospital — Tallahassee, Inc.
	 
	 	209.	 	Select Specialty Hospital — Topeka, Inc.
	 
	 	210.	 	Select Specialty Hospital — TriCities, Inc.
	 
	 	211.	 	Select Specialty Hospital — Tulsa, Inc.
	 
	 	212.	 	Select Specialty Hospital — Tupelo, Inc.
	 
	 	213.	 	Select Specialty Hospital — Western Michigan, Inc.
	 
	 	214.	 	Select Specialty Hospital — Western Missouri, Inc.
	 
	 	215.	 	Select Specialty Hospital — Wichita, Inc.
	 
	 	216.	 	Select Specialty Hospital — Wilmington, Inc.
	 
	 	217.	 	Select Specialty Hospital — Winston-Salem, Inc.
	 
	 	218.	 	Select Specialty Hospital — Wyandotte, Inc.
	 
	 	219.	 	Select Specialty Hospital — Youngstown, Inc.
	 
	 	220.	 	Select Specialty Hospital — Zanesville, Inc.
	 
	 	221.	 	Select Specialty Hospitals, Inc.
	 
	 	222.	 	Select Synergos, Inc.
	 
	 	223.	 	Select Transport, Inc.
	 
	 	224.	 	Select Unit Management, Inc.
	 
	 	225.	 	SelectMark, Inc.
	 
	 	226.	 	SemperCare Hospital of Fort Myers, Inc.
	 
	 	227.	 	SemperCare Hospital of Hartford, Inc.
	 
	 	228.	 	SemperCare Hospital of Lakeland, Inc.
	 
	 	229.	 	SemperCare Hospital of Lakewood, Inc.
	 
	 	230.	 	SemperCare Hospital of Mobile, Inc.
	 
	 	231.	 	SemperCare Hospital of Pensacola, Inc.
	 
	 	232.	 	SemperCare Hospital of Sarasota, Inc.

 

 

	 	233.	 	SemperCare Hospital of Volusia, Inc.
	 
	 	234.	 	SemperCare Hospital of Washington, Inc.
	 
	 	235.	 	SemperCare, Inc.
	 
	 	236.	 	SLMC Finance Corporation
	 
	 	237.	 	South Jersey Rehabilitation and Sports Medicine Center, Inc.
	 
	 	238.	 	Southwest Physical Therapy, Inc.
	 
	 	239.	 	Sports & Orthopedic Rehabilitation Services, Inc.
	 
	 	240.	 	Stephenson-Holtz, Inc.
	 
	 	241.	 	The Orthopedic Sports and Industrial Rehabilitation Network,
Inc.
	 
	 	242.	 	Vanguard Rehabilitation, Inc.
	 
	 	243.	 	Victoria Healthcare, Inc.
	 
	 	244.	 	Waltham Physical Therapy Associates, Inc.
	 
	 	245.	 	Wayzata Physical Therapy Center, Inc.
	 
	 	246.	 	West Side Physical Therapy, Inc.
	 
	 	247.	 	West Suburban Health Partners, Inc.exv4w5

 

Exhibit
4.5

RECEIVABLES PURCHASE AGREEMENT

between

ADVANTA BANK CORP.

and

ADVANTA BUSINESS RECEIVABLES CORP.

Dated as of August 1, 2000

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Other Definitional Provisions
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II PURCHASE AND CONVEYANCE OF RECEIVABLES
	 	 	6	 
	 
	 	 	 	 
	Section 2.01 Purchase
	 	 	6	 
	Section 2.02 Inclusion of Additional Designated Accounts
	 	 	7	 
	Section 2.03 Representations and Warranties
	 	 	9	 
	Section 2.04 Delivery of Documents
	 	 	9	 
	Section 2.05 Removal of Accounts
	 	 	9	 
	 
	 	 	 	 
	ARTICLE III CONSIDERATION AND PAYMENT
	 	 	11	 
	 
	 	 	 	 
	Section 3.01 Purchase Price
	 	 	11	 
	Section 3.02 Adjustments for Miscellaneous Credits and Fraudulent Charges
	 	 	11	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	12	 
	 
	 	 	 	 
	Section 4.01 Representations and Warranties of ABC Relating to ABC
	 	 	12	 
	Section 4.02 Representations and Warranties of ABC Relating to the Agreement and the Receivables
	 	 	13	 
	Section 4.03 Representations and Warranties of ABRC
	 	 	15	 
	 
	 	 	 	 
	ARTICLE V COVENANTS
	 	 	17	 
	 
	 	 	 	 
	Section 5.01 Covenants of ABC
	 	 	17	 
	 
	 	 	 	 
	ARTICLE VI REPURCHASE OBLIGATION
	 	 	20	 
	 
	 	 	 	 
	Section 6.01 Reassignment of Ineligible Receivables
	 	 	20	 
	Section 6.02 Reassignment
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VII CONDITIONS PRECEDENT
	 	 	22	 
	 
	 	 	 	 
	Section 7.01 Conditions to ABRC’s Obligations Regarding Initial Receivables
	 	 	22	 
	Section 7.02 Conditions Precedent to ABC’s Obligations
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VIII TERM AND PURCHASE TERMINATION
	 	 	24	 
	 
	 	 	 	 
	Section 8.01 Term
	 	 	24	 
	Section 8.02 Purchase Termination
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS PROVISIONS
	 	 	25	 
	 
	 	 	 	 
	Section 9.01 Amendment
	 	 	25	 

i

 

	 	 	 	 	 
	 	 	Page
	Section 9.02 Governing Law
	 	 	25	 
	Section 9.03 Notices
	 	 	25	 
	Section 9.04 Severability of Provisions
	 	 	25	 
	Section 9.05 Assignment
	 	 	26	 
	Section 9.06 Acknowledgment and Agreement of ABC
	 	 	26	 
	Section 9.07 Further Assurances
	 	 	26	 
	Section 9.08 No Waiver; Cumulative Remedies
	 	 	26	 
	Section 9.09 Counterparts
	 	 	27	 
	Section 9.10 Binding Agreement; Third-Party Beneficiaries
	 	 	27	 
	Section 9.11 Merger and Integration
	 	 	27	 
	Section 9.12 Headings
	 	 	27	 
	Section 9.13 Schedules and Exhibits
	 	 	27	 
	Section 9.14 Survival of Representations and Warranties
	 	 	27	 
	Section 9.15 Nonpetition Covenant
	 	 	27	 

ii

 

     RECEIVABLES PURCHASE AGREEMENT, dated as of August 1, 2000, by and between ADVANTA BANK CORP.,
a Utah industrial loan corporation (“ABC”), and ADVANTA BUSINESS RECEIVABLES CORP., a Nevada
corporation (“ABRC”).

W I T N E S S E T H:

     WHEREAS, ABRC desires to purchase, from time to time, certain Receivables (hereinafter
defined) arising under certain credit card accounts of ABC;

     WHEREAS, ABRC may in the future desire to purchase, from time to time, certain Receivables
sold to ABC by another Account Owner (hereinafter defined) and arising under certain credit card
accounts of such Account Owner;

     WHEREAS, ABC desires to sell and assign, from time to time, certain Receivables to ABRC upon
the terms and conditions hereinafter set forth;

     WHEREAS, it is contemplated that the Receivables purchased hereunder will be transferred by
ABRC to the Trust (hereinafter defined) in connection with the issuance of certain Securities
(hereinafter defined); and

     WHEREAS, ABC agrees that all representations, warranties, covenants and agreements made by ABC
herein with respect to the Designated Accounts (hereinafter defined) and Receivables shall also be
for the benefit of the Owner Trustee (hereinafter defined), the Indenture Trustee (hereinafter
defined) and all beneficiaries of the Trust, including the holders of the Securities.NOW,
THEREFORE, it is hereby agreed by and between ABC and ABRC as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. All capitalized terms used herein or in any certificate,
document, or Conveyance Paper (hereinafter defined) made or delivered pursuant hereto, and not
defined herein or therein, shall have the meaning ascribed thereto in the Transfer and Servicing
Agreement (hereinafter defined), the Trust Agreement (hereinafter defined) or the Indenture
(hereinafter defined); in addition, the following words and phrases shall have the following
meanings:

     “ABC” shall mean Advanta Bank Corp., a Utah industrial loan corporation, and its
successors and permitted assigns.

     “ABRC” shall mean Advanta Business Receivables Corp., a Nevada corporation, and its
successors and permitted assigns.

 

 

     “Account” shall mean each MasterCard1 and VISA1 account
established pursuant to a Credit Card Agreement between ABC or any other Account Owner and any
Person.

     “Account Owner” shall mean ABC or any Affiliate of ABC which is the issuer of the
credit card relating to an Account pursuant to a Credit Card Agreement.

     “Addition Date” shall mean with respect to Additional Designated Accounts, the date on
which such Additional Designated Accounts become Designated Accounts pursuant to an Additional
Designated Account Assignment.

     “Additional Cut-Off Date” shall mean with respect to Additional Designated Accounts,
the date specified in the related Additional Designated Account Assignment.

     “Additional Designated Account” shall mean each additional Designated Account, the
Receivables of which are sold to ABRC pursuant to Section 2.02.

     “Additional Designated Account Assignment” shall mean a written assignment
substantially in the form of Exhibit A hereto pursuant to which ABC designates and assigns
Additional Designated Accounts.

     “Agreement” shall mean this Receivables Purchase Agreement and all amendments hereof
and supplements hereto.

     “Closing Date” shall mean August 18, 2000.

     “Conveyance” shall have the meaning specified in subsection 2.01(a).

     “Conveyance Papers” shall have the meaning specified in subsection 4.01(c).

     “Debtor Relief Laws” shall mean (i) the Bankruptcy Code of the United States of
America and (ii) all other applicable liquidation, conservatorship, bankruptcy, moratorium,
rearrangement, receivership, insolvency, reorganization, suspension of payments, readjustment of
debt, marshalling of assets or similar debtor relief laws of the United States, any state or any
foreign country from time to time in effect affecting the rights of creditors generally.

     “Designated Account” shall mean (a) each Account, which account is identified by
account number and by the Receivables balance as of the Initial Cut-Off Date or the applicable
Additional Cut-Off Date, as the case may be, in the computer file or microfiche list delivered to
ABRC by ABC on the Closing Date or any applicable Addition Date, as the case may be, (b) each
Related Account, and (c) each account into which a Designated Account shall be transferred (a
“Transferred Account”); provided that (i) such transfer was made in accordance with the Credit Card
Guidelines and (ii) such account can be traced or identified as an account

 

			
	1	 	MasterCard and VISA are registered trademarks of
MasterCard International Incorporated and of VISA U.S.A., Inc., respectively.

 - 2 - 

 

into which a Designated Account has been transferred, but shall exclude (e) any Account that
(x) after the Removal Date, the newly generated Receivables in which shall not be assigned to ABRC
hereunder, (y) the right, title and interest of ABRC in the Receivables in which are reassigned to
ABC pursuant to Section 6.01 or (z) the right, title and interest of the Trust in the Receivables
in which are assigned and transferred to the Servicer pursuant to Section 3.03 of the Transfer and
Servicing Agreement.

     “Eligible Receivable” shall have the meaning set forth in the Transfer and Servicing
Agreement, except that “ABC” shall be substituted for each occurrence of “Transferor,” “ABRC” shall
be substituted for each occurrence of “Trust,” and all references to the Notes shall be ignored.

     “Finance Charge and Administrative Receivables” shall mean all Receivables in the
Designated Accounts which would be treated as “Finance Charge and Administrative Receivables” in
accordance with the definition for such term in the Transfer and Servicing Agreement.

     “Indenture” shall mean the Master Indenture between the Trust and the Indenture
Trustee, dated as of August 1, 2000, as supplemented by Indenture Supplements applicable to any
Series that may be issued from time to time.

     “Indenture Supplement” shall mean the indenture supplement pursuant to which a Series
is issued.

     “Indenture Trustee” shall mean Bankers Trust Company, a New York banking corporation,
in its capacity as indenture trustee, or any successor indenture trustee.

     “Initial Designated Account” shall mean any Account designated as a “Designated
Account” hereunder on the Closing Date.

     “Initial Cut-Off Date” shall mean August 1, 2000.

     “Insolvency Event” shall have the meaning specified in Section 8.02.

     “Interchange” shall mean interchange fees payable to ABC or any other Account Owner,
in its capacity as credit card issuer, through VISA or MasterCard in connection with cardholder
charges for goods or services with respect to the Accounts, as calculated pursuant to the related
Indenture Supplement for any Series.

     “Obligor” shall mean, with respect to each Account, each Person that would be treated
as an “Obligor” in accordance with the definition for such term in the Transfer and Servicing
Agreement.

     “Owner Trustee” shall mean Wilmington Trust Company, a Delaware banking corporation,
the institution executing the Trust Agreement as and acting in the capacity of Owner

 - 3 - 

 

Trustee thereunder, or its successor in interest, or any successor trustee appointed as
provided in the Trust Agreement.

     “Principal Receivables” shall mean all Receivables in the Accounts that would be
treated as “Principal Receivables” in accordance with the definition for such term in the Transfer
and Servicing Agreement.

     “Purchase Price” shall have the meaning set forth in Section 3.01.

     “Purchased Assets” shall have the meaning set forth in Section 2.01.

     “Receivables” shall mean all amounts shown on ABC’s or another Account Owner’s records
as amounts payable by Obligors on any Designated Account from time to time, including amounts
payable for Principal Receivables and Finance Charge and Administrative Receivables. Receivables
that become Defaulted Receivables will cease to be included as Receivables as of the day on which
they become Defaulted Receivables.

     “Removal Cut-Off Date” shall mean with respect to Removed Accounts, the date specified
as such in the notice delivered pursuant to Section 2.05.

     “Removal Date” shall have the meaning specified in Section 2.05.

     “Removal Notice Date” shall have the meaning specified in Section 2.05.

     “Removed Accounts” shall have the meaning specified in Section 2.05.

     “Securities” shall mean any one of the Notes and any Trust Beneficial Interest or
Certificate (as such terms are defined in the Trust Agreement).

     “Transfer and Servicing Agreement” shall mean the Transfer and Servicing Agreement,
dated as of August 1, 2000, among ABC, as Servicer, ABRC, as Transferor, and the Trust, and all
amendments and supplements thereto.

     “Trust” shall mean the trust created by the Trust Agreement.

     “Trust Agreement” shall mean the Trust Agreement, dated as of August 1, 2000, between
ABRC, as Transferor, and Wilmington Trust Company, as Owner Trustee, and all amendments and
supplements thereto.

     Section 1.02 Other Definitional Provisions.

     (a) All terms defined in this Agreement shall have the defined meanings when used in any
certificate, other document, or Conveyance Paper made or delivered pursuant hereto unless otherwise
defined therein.

 - 4 - 

 

     (b) (b) The words “hereof,” “herein,” “hereunder” and words of similar import when used in
this Agreement or any Conveyance Paper shall refer to this Agreement as a whole and not to any
particular provision of this Agreement; and Section, subsection, Schedule and Exhibit references
contained in this Agreement are references to Sections, subsections, Schedules and Exhibits in or
to this Agreement unless otherwise specified.

     (c) All determinations of the portion of Receivables constituting principal, finance charges
or other fees and of any collections thereof, shall be made in accordance with the Transfer and
Servicing Agreement and the Indenture.

[END OF ARTICLE I]

 - 5 - 

 

ARTICLE II

PURCHASE AND CONVEYANCE OF RECEIVABLES

     Section 2.01 Purchase.

     (a) By execution of this Agreement, ABC does hereby sell, transfer, assign, set over and
otherwise convey to ABRC (collectively, the “Conveyance”), on the Initial Issuance Date and
each Addition Date, as applicable, without recourse except as provided herein, all its right, title
and interest in, to and under (i) the Receivables existing at the close of business on the Initial
Issuance Date, in the case of Receivables arising in the Initial Designated Accounts, (ii) the
Receivables existing at the close of business on each Addition Date, in the case of Receivables
arising in the Additional Designated Accounts, and (iii) the Receivables created in the Initial
Designated Accounts and the Additional Designated Accounts from time to time after the close of
business on the Initial Issuance Date and the close of business on the applicable Addition Date,
respectively, until the termination of this Agreement pursuant to Article VIII hereof, (iv) all
Interchange and Recoveries with respect to such Receivables, (v) all monies due or to become due
and all amounts received or receivable with respect thereto and, (vi) all proceeds (including,
without limitation, “proceeds” as defined in the UCC) thereof (collectively, the “Purchased
Assets”).

     (b) In connection with such Conveyance, ABC agrees (i) to record and file, at its own expense,
any financing statements (and continuation statements with respect to such financing statements
when applicable) with respect to the Receivables existing as of the close of business on the
Initial Issuance Date and thereafter created in the Initial Designated Accounts and, existing as of
the close of business on the applicable Addition Date and thereafter created, in the Additional
Designated Accounts, meeting the requirements of applicable state law in such manner and in such
jurisdictions as are necessary to perfect, and maintain perfection of, the Conveyance of such
Purchased Assets from ABC to ABRC, (ii) that such financing statements shall name ABC, as seller,
and ABRC, as purchaser, of the Receivables and (iii) to deliver a file-stamped copy of such
financing statements or other evidence of such filings to ABRC as soon as is practicable after
filing.

     (c) In connection with such Conveyance, ABC further agrees that it will, at its own expense,
(i) on or prior to (x) the Initial Issuance Date, in the case of Initial Designated Accounts, (y)
the applicable Addition Date, in the case of Additional Designated Accounts, and (z) the applicable
Removal Date, in the case of Removed Accounts, indicate in its computer files that, in the case of
the Initial Designated Accounts or the Additional Designated Accounts, Receivables created in
connection with such Designated Accounts have been conveyed to ABRC in accordance with this
Agreement by including (or that, in the case of Removed Accounts, newly created Receivables in such
Designated Accounts have been reassigned to ABC in accordance with this Agreement by deleting) in
such computer files the applicable code which identifies each such Designated Account and (i) on or
prior to (x) the Initial Issuance Date, in the case of the Initial Designated Accounts, (y) the
applicable Addition Date, in the case of Additional Designated Accounts, and (z) the applicable
Removal Date, in the case of Removed Accounts, to deliver to ABRC a computer file or microfiche
list containing a true and complete

 - 6 - 

 

list of all such Designated Accounts specifying for each such Designated Account, as of the
Initial Cut-Off Date, in the case of the Initial Designated Accounts, the applicable Additional
Cut-off Date, in the case of Additional Designated Accounts, and the applicable Removal Cut-Off
Date, in the case of Removed Accounts, (A) its account number and (B) the aggregate amount of
Receivables in such Designated Account. Each such computer file or microfiche list, as
supplemented from time to time to reflect Additional Designated Accounts or Removed Accounts, shall
be marked as Schedule 1 to this Agreement, shall be delivered to ABRC, and is hereby incorporated
into and made a part of this Agreement. ABC further agrees not to alter the code referenced in
clause (i) of this paragraph with respect to any Designated Account during the term of this
Agreement unless and until such Designated Account becomes a Removed Account.

     (d) The parties hereto intend that the conveyance of ABC’s right, title and interest in and to
the Purchased Assets shall constitute an absolute sale from ABC to ABRC, conveying good title free
and clear of any liens, claims, encumbrances or rights of others. It is the intention of the
parties hereto that the arrangements with respect to the Purchased Assets shall constitute a
purchase and sale of such Purchased Assets and not a loan. In the event, however, that it were to
be determined that the transactions evidenced hereby constitute a loan and not a purchase and sale,
it is the intention of the parties hereto that this Agreement shall constitute a security agreement
under applicable law, and that ABC shall be deemed to have granted and does hereby grant to ABRC a
first priority perfected security interest in all of ABC’s right, title and interest, whether owned
on the Initial Issuance Date or thereafter acquired, in, to and under the Purchased Assets, and all
money, accounts, general intangibles, chattel paper, instruments, documents, goods, investment
property, deposit accounts, certificates of deposit, letters of credit, and advices of credit
consisting of, arising from or related to the Purchased Assets, and all proceeds (including without
limitation, “proceeds” as defined in the UCC) thereof to secure the obligations of ABC hereunder.

     (e) To the extent that ABC retains any interest in the Purchased Assets, ABC hereby grants to
the Indenture Trustee for the benefit of the Noteholders a security interest in all of ABC’s right,
title and interest, whether now owned or hereafter acquired, in, to and under the Purchased Assets,
and all money, accounts, general intangibles, chattel paper, instruments, documents, goods,
investment property, deposit accounts, certificates of deposit, letters of credit and advices of
credit consisting of, arising from or related to the Purchased Assets (collectively, the “Indenture
Collateral”), to secure the performance of all of the obligations of ABC hereunder and under the
Indenture and the Transaction Documents. With respect to the Indenture Collateral, the Indenture
Trustee shall have all of the rights that it has under the Indenture and the Transaction Documents.
The Indenture Trustee shall have all of the rights of a secured creditor under the UCC in New York
and the UCC in Delaware.

     Section 2.02 Inclusion of Additional Designated Accounts.

     (a) Additional Designated Accounts. (i) Upon the request of ABRC in accordance with
Section 2.09(a) of the Transfer and Servicing Agreement, ABC shall, or (ii) at ABC’s election in
accordance with Section 2.09(b) of the Transfer and Servicing Agreement, ABC may, designate from
time to time Additional Designated Accounts to be included as Designated

 - 7 - 

 

Accounts, the Receivables in which are sold to ABRC pursuant to this Agreement. Any
designation of Additional Designated Accounts shall be effective as of the Addition Date specified
by ABC and set forth in the related Additional Designated Account Assignment delivered to ABRC by
ABC (which shall include a revised Schedule 1 (which may be in electronic form) showing the
Additional Designated Accounts).

     (b) Conditions to Additions. In connection with any Additional Designated Accounts
designated pursuant to subsection 2.02(a), the following conditions shall be satisfied before the
proposed Accounts are “Designated Accounts” within the meaning of this Agreement:

          (i) on or before the fifth Business Day immediately preceding the Addition Date, ABC shall
have given ABRC written notice (unless such notice requirement is otherwise waived) specifying the
applicable Addition Date, the Additional Cut-Off Date, and the approximate number of Accounts
expected to be added and the approximate aggregate balances of Receivables expected to be
outstanding in the Accounts to be added;

          (ii) ABC shall have delivered to ABRC copies of UCC-1 financing statements covering such
Additional Designated Accounts, if necessary, to perfect ABRC’s interest in the Receivables arising
therein and a schedule of such Additional Designated Accounts;

          (iii) as of each of the Additional Cut-Off Date and the Addition Date, no Insolvency Event
with respect to ABC or other Account Owner, as applicable, shall have occurred, nor shall the
transfer of the Receivables arising in the Additional Designated Accounts to ABRC have been made in
contemplation of the occurrence thereof;

          (iv) unless the Rating Agency Condition is satisfied, the number of Additional Designated
Accounts designated pursuant to subsection 2.02(a)(ii) with respect to any of the three (3)
consecutive Monthly Periods commencing in December, March, June and September of each calendar
year, commencing June 2000, shall not exceed 15% of the number of Accounts as of the first day of
the calendar year during which such Monthly Periods commence (or, in the case of the year 2000, the
number of Accounts as of the Initial Issuance Date) and the number of Additional Designated
Accounts designated pursuant to subsection 2.02(a)(ii) during any calendar year shall not exceed
20% of the number of Accounts as of the first day of such calendar year (or, in the case of the
year 2000, the number of Accounts as of the Initial Issuance Date);

          (v) the transfer of the Receivables arising in the Additional Designated Accounts to ABRC will
not result in an Adverse Effect;

          (vi) ABC shall have delivered to ABRC an Officer’s Certificate, dated the Addition Date,
stating that (x) as of the applicable Additional Cut-Off Date, the Additional Designated Accounts
are all Eligible Accounts, (y) to the extent applicable, the conditions set forth in clauses (ii)
through (v) above have been satisfied;

 - 8 - 

 

          (vii) ABC shall have delivered to ABRC the computer file or microfiche list required to be
delivered pursuant to Section 2.01(c) with respect to such Additional Designated Accounts;

          (viii) ABC shall have delivered to ABRC an Opinion of Counsel, which counsel shall be outside
counsel, dated the Addition Date, to the effect described in Section 9.02(d)(ii) of the Transfer
and Servicing Agreement; and

          (ix) Solely with respect to Aggregate Additions pursuant to Section 2.09(b) of the Transfer
and Servicing Agreement where the Additional Designated Accounts were not originated by ABC, the
Rating Agency Condition shall have been satisfied.

     Section 2.03 Representations and Warranties. ABC hereby represents and warrants to
ABRC as of the related Addition Date as to the matters set forth in Section 2.02(b)(iii) and (iv)
above and that, in the case of Additional Designated Accounts, the list delivered pursuant to
Section 2.04 below is, as of the applicable Additional Cut-Off Date, true and complete in all
material respects.

     Section 2.04 Delivery of Documents. In the case of the designation of Additional
Designated Accounts, ABC shall deliver to ABRC (i) the computer file or microfiche list required to
be delivered pursuant to Section 2.01 with respect to such Additional Designated Accounts on the
date such file or list is required to be delivered pursuant to Section 2.01 (the “Document
Delivery Date”) and (ii) a duly executed Additional Designated Account Assignment (including an
acceptance by ABRC), on the Document Delivery Date.

     Section 2.05 Removal of Accounts.

     On any day of any Monthly Period ABC shall have the right to require the reassignment to it or
its designee of all ABRC’s right, title and interest in, to and under the Receivables then existing
and thereafter created, all Interchange and Recoveries related thereto, all monies due or to become
due and all amounts received or receivable with respect thereto and all proceeds thereof in or with
respect to the Designated Accounts designated by ABC (the “Removed Accounts”) designated
for removal by the Transferor, upon satisfaction of the following conditions:

          (i) on or before the fifth Business Day immediately preceding the Removal Date (the
“Removal Notice Date”), ABC shall have given written notice to ABRC (unless such notice
requirement is otherwise waived) of such removal and specifying the applicable Removal Cut-Off Date
and date for removal of the Removed Accounts (the “Removal Date”);

          (ii) on or prior to the date that is five (5) Business Days on or before the Removal Date, ABC
shall amend and supplement Schedule 1 by delivering to ABRC a computer file or microfiche list
containing a true and complete list of the Removed Accounts specifying
for each such Account, as of the Removal Cut-Off Date, its account number, the aggregate
amount outstanding in such Account and the aggregate amount of Principal Receivables outstanding in
such Account;

 - 9 - 

 

          (iii) ABC shall have represented and warranted as of the Removal Date that the list of Removed
Accounts delivered pursuant to paragraph (ii) above, as of the Removal Cut-Off Date, is true and
complete in all material respects;

          (iv) the Rating Agency Condition shall have been satisfied with respect to the removal of the
Removed Accounts;

          (v) ABC shall select Accounts for removal on a random basis, or such other selection process
which is consistent with achieving sale treatment under GAAP;

          (vi) ABC shall have delivered to ABRC an Officer’s Certificate, dated the Removal Date, to the
effect that ABC reasonably believes that (A) such removal will not have a material adverse effect
on ABRC, (B) such removal will not result in the occurrence of a Pay Out Event or Event of Default,
and (C) no selection procedures believed by such Transferor to be materially adverse to the
interests of ABRC have been used in selecting the Removed Accounts;

          (vii) ABRC shall have delivered to ABC an Officer’s Certificate stating that ABRC has not
taken any action with respect to such Receivables which would result in the creation of any liens
or encumbrances on the Receivables (other than those liens and encumbrances authorized by this
Agreement or the Transfer and Servicing Agreement).

     Upon satisfaction of the above conditions, ABRC shall execute and deliver to ABC a written
reassignment in substantially the form of Exhibit B (the “Reassignment”) and shall, without
further action, be deemed to transfer, assign, set over and otherwise convey to ABC or its
designee, effective as of the Removal Date, without recourse, representation or warranty, all the
right, title and interest of ABRC in and to the Receivables arising in the Removed Accounts, all
Interchange and Recoveries related thereto, all monies due and to become due and all amounts
received or receivable with respect thereto and all proceeds thereof and any Insurance Proceeds
relating thereto. ABRC may conclusively rely on the Officer’s Certificate of ABC delivered
pursuant to clause (vi) of this Section 2.05 and shall have no duty to make inquiries with regard
to the matters set forth therein and shall incur no liability in so relying.

     In addition to the foregoing, on the date when any Receivable in an Account becomes a
Defaulted Receivable, ABRC shall automatically and without further action or consideration be
deemed to transfer, set over and otherwise convey to ABC or its designee with respect to such
Account, without recourse, representation or warranty, all right, title and interest of ABRC in and
to the Defaulted Receivables in such Account, all Interchange related thereto, all monies and
amounts due or to become due with respect thereto, all proceeds thereof and any Insurance Proceeds
relating thereto; provided that Recoveries of such Account shall be applied as provided
herein.

[END OF ARTICLE II]

 - 10 - 

 

ARTICLE III

CONSIDERATION AND PAYMENT

     Section 3.01 Purchase Price.

     (a) The purchase price (the “Purchase Price”) for each Receivable (and the related
assets with respect thereto) transferred to ABRC hereunder shall equal the outstanding balance of
the related Principal Receivable on the date of sale hereunder.

     (b) Such portion of the Purchase Price for the Receivables as may be agreed from time to time
by ABRC and ABC shall be paid by ABRC by wire transfer in immediately available funds to ABC (or as
otherwise agreed by ABC) with the remainder being paid by ABRC’s assignment hereunder to ABC of a
participation in such percentage amount of the Trust Beneficial Interest or Certificate owned by
ABRC as mutually agreed by ABRC and ABC from time to time. For and in consideration of the
Receivables sold to ABRC from time to time hereunder, ABRC does hereby transfer, assign and convey
to ABC a participation in such percentage amount of ABRC’s right, title and interest in the Trust
Beneficial Interest or Certificate owned by ABRC as mutually agreed by ABRC and ABC from time to
time, all monies due or to become due and all amounts received or to be received with respect to
any such respective percentage amount and all proceeds (including, without limitation, all
“proceeds” as defined in the UCC as in effect in the state of New York) thereof.

     (c) ABRC and ABC shall settle as to the Purchase Price for Receivables conveyed during the
related prior Monthly Period. ABRC and ABC shall determine the aggregate amount of conveyances
made during the related Monthly Period and the aggregate Purchase Price for Receivables conveyed
during that Monthly Period. Amounts paid to ABRC pursuant to the Transfer and Servicing Agreement
shall be remitted by ABRC to ABC as payment of the cash portion of the Purchase Price for
Receivables conveyed during the related Monthly Period.

     Section 3.02 Adjustments for Miscellaneous Credits and Fraudulent Charges. In the
event that, following the exclusion of Principal Receivables from the calculation of the Transferor
Interest pursuant to Section 3.09 of the Transfer and Servicing Agreement, the Transferor Interest
would be less than the Required Transferor Interest, not later than 12:00 noon, New York City time,
on the Payment Date following the Monthly Period in which such adjustment obligation arises, ABC
shall pay to ABRC (which in turn shall make a deposit into the Excess Funding Account) in
immediately available funds an amount equal to the amount by which the Transferor Interest would be
less than the Required Transferor Interest (up to the amount of such adjustments).

[END OF ARTICLE III]

 - 11 - 

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.01 Representations and Warranties of ABC Relating to ABC. ABC hereby
represents and warrants to, and agrees with, ABRC as of the Closing Date and on each Addition Date,
that:

     (a) Organization and Good Standing. ABC is an industrial loan corporation duly
organized and validly existing in good standing under the laws of the State of Utah and has, in all
material respects, full power and authority to own its properties and conduct its business as such
properties are presently owned and such business is presently conducted, and to execute, deliver
and perform its obligations under this Agreement.

     (b) Due Qualification. ABC is duly qualified to do business and is in good standing
as a foreign corporation (or is exempt from such requirements) and has obtained all necessary
licenses and approvals in each jurisdiction in which failure to so qualify or to obtain such
licenses and approvals would (i) render any Credit Card Agreement relating to a Designated Account
or any Receivable unenforceable by ABC, ABRC or the Trust and (ii) have a material adverse effect
on the Noteholders.

     (c) Due Authorization. The execution, delivery and performance of this Agreement and
any other document or instrument delivered pursuant hereto, including any Additional Designated
Account Assignment, to which ABC is a party (such other documents or instruments, collectively, the
“Conveyance Papers”), and the consummation of the transactions provided for in this
Agreement and the Conveyance Papers have been duly authorized by ABC by all necessary corporate
action on the part of ABC.

     (d) No Conflict. The execution and delivery of this Agreement and the Conveyance
Papers by ABC, the performance of the transactions contemplated by this Agreement and the
Conveyance Papers, and the fulfillment of the terms of this Agreement and the Conveyance Papers
applicable to ABC will not conflict with, violate or result in any breach of any of the material
terms and provisions of, or constitute (with or without notice or lapse of time or both) a material
default under, any indenture, contract, agreement, mortgage, deed of trust, or other instrument to
which ABC is a party or by which it or any of its properties are bound.

     (e) No Violation. The execution, delivery and performance of this Agreement and the
Conveyance Papers by ABC and the fulfillment of the terms contemplated herein and therein
applicable to ABC will not conflict with or violate any Requirements of Law applicable to ABC.

     (f) No Proceedings. There are no proceedings or investigations pending or, to the
best knowledge of ABC, threatened, against ABC before any Governmental Authority (i)
asserting the invalidity of this Agreement or the Conveyance Papers, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or the Conveyance Papers,
(iii) seeking any determination or ruling that, in the reasonable judgment of ABC, would materially
and adversely affect the performance by ABC of its obligations under this Agreement

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or the Conveyance Papers, (iv) seeking any determination or ruling that would materially and
adversely affect the validity or enforceability of this Agreement or the Conveyance Papers or (v)
seeking to affect adversely the income tax attributes of the Trust under the United States Federal
or Delaware income tax systems.

     (g) All Consents. All authorizations, consents, orders or approvals of or
registrations or declarations with any Governmental Authority required to be obtained, effected or
given by ABC in connection with the execution and delivery by ABC of this Agreement and the
Conveyance Papers and the performance of the transactions contemplated by this Agreement or the
Conveyance Papers by ABC have been duly obtained, effected or given and are in full force and
effect.

     The representations and warranties set forth in this Section 4.01 shall survive the transfer
and assignment of the Receivables to ABRC. Upon discovery by ABC or ABRC of a breach of any of the
foregoing representations and warranties, the party discovering such breach shall give written
notice to the other party, the Owner Trustee and the Indenture Trustee within three (3) Business
Days following such discovery.

     Section 4.02 Representations and Warranties of ABC Relating to the Agreement and the
Receivables.

     (a) Representations and Warranties. ABC hereby represents and warrants to ABRC as of
the date of this Agreement and as of the Closing Date with respect to the Initial Designated
Accounts (and Receivables arising therein) and, with respect to Additional Designated Accounts (and
Receivables arising therein), as of the related Addition Date that:

          (i) this Agreement and, in the case of Additional Designated Accounts, the related Additional
Designated Account Assignment, each constitutes a legal, valid and binding obligation of ABC
enforceable against ABC in accordance with its terms, except as such enforceability may be limited
by applicable Debtor Relief Laws or general principles of equity;

          (ii) as of the Initial Cut-Off Date with respect to the Initial Designated Accounts, and as of
the related Additional Cut-Off Date with respect to Additional Designated Accounts, Schedule 1 to
this Agreement, as supplemented to such date, is an accurate and complete listing in all material
respects of all the Designated Accounts as of the Initial Cut-Off Date or such Additional Cut-Off
Date, as the case may be, and the information contained therein with respect to the identity of
such Designated Accounts and the Receivables existing thereunder is true and correct in all
material respects as of the Initial Cut-Off Date or such applicable Additional Cut-Off Date, as the
case may be, and as of the Initial Cut-Off Date, the aggregate amount of Receivables in all the
Initial Designated Accounts was $984,660,846.00;

          (iii) each Receivable has been conveyed to ABRC free and clear of any Lien and each underlying
receivable is free and clear of all Liens;

          (iv) all authorizations, consents, orders or approvals of or registrations or declarations
with any Governmental Authority required to be obtained, effected or given by ABC

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in connection with the conveyance of Receivables to ABRC have been duly obtained, effected or
given and are in full force and effect;t

          (v) this Agreement and, in the case of Additional Designated Accounts, the related Additional
Designated Account Assignment constitutes a valid sale, transfer and assignment to ABRC of all
right, title and interest of ABC in the Receivables and the proceeds thereof and the Interchange
payable pursuant to this Agreement and the Recoveries payable pursuant to this Agreement or, if
this Agreement or, in the case of Additional Designated Accounts, the related Assignment does not
constitute a sale of such property, it constitutes a grant of a first priority perfected “security
interest” (as defined in the UCC) in such property to ABRC, which, in the case of existing
Receivables and the proceeds thereof and said Recoveries and Interchange, is enforceable upon
execution and delivery of this Agreement, or, with respect to then existing Receivables in
Additional Designated Accounts, as of the applicable Addition Date, and which will be enforceable
with respect to Receivables created in the Initial Designated Accounts after the date hereof and
Receivables created in the Additional Designated Accounts after the applicable Addition Date and
the proceeds thereof upon such creation. Upon the filing of the financing statements and, in the
case of Receivables hereafter created and the proceeds thereof, upon the creation thereof, ABRC
shall have a first priority perfected security or ownership interest in such property and proceeds;

          (vi) on the Initial Cut-Off Date, each Initial Designated Account is an Eligible Account and,
on the Additional Cut-Off Date, each related Additional Designated Account is an Eligible Account;

          (vii) on the Initial Cut-Off Date, each Receivable contained in the related Initial Designated
Account is an Eligible Receivable and, on the applicable Additional Cut-Off Date, each Receivable
contained in the related Additional Designated Account is an Eligible Receivable;

          (viii) as of the date of the creation of any new Receivable, such Receivable is an Eligible
Receivable; and

          (ix) no selection procedures believed by ABC to be materially adverse to the interests of ABRC
or the Noteholders have been used in selecting such Designated Accounts.

     (b) Notice of Breach. The representations and warranties set forth in this Section
4.02 shall survive the transfer and assignment of the Receivables to ABRC. Upon discovery by
either ABC or ABRC of a breach of any of the representations and warranties set forth in this
Section 4.02, the party discovering such breach shall give written notice to the other party, the
Owner Trustee and the Indenture Trustee within three (3) Business Days following such discovery;
provided that the failure to give notice within three (3) Business Days does not preclude
subsequent notice. ABC hereby acknowledges that ABRC intends to rely on the representations
hereunder in connection with representations made by ABRC to secured parties, assignees or
subsequent transferees including but not limited to transfers made by ABRC to the Trust pursuant to
the Transfer and Servicing Agreement and by the Trust to the Indenture

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Trustee pursuant to the Indenture and that ABRC, the Owner Trustee and the Indenture Trustee
may enforce such representations directly against ABC.

     Section 4.03 Representations and Warranties of ABRC. As of the Closing Date and each
Addition Date, ABRC hereby represents and warrants to, and agrees with, ABC that:

     (a) Organization and Good Standing. ABRC is a corporation duly organized and validly
existing under the laws of the State of Nevada and has, in all material respects, full power and
authority to own its properties and conduct its business as such properties are presently owned and
such business is presently conducted and to execute, deliver and perform its obligations under this
Agreement.

     (b) Due Authorization. The execution and delivery of this Agreement and the
Conveyance Papers and the consummation of the transactions provided for in this Agreement and the
Conveyance Papers have been duly authorized by ABRC by all necessary corporate action on the part
of ABRC.

     (c) No Conflict. The execution and delivery of this Agreement and the Conveyance
Papers by ABRC, the performance of the transactions contemplated by this Agreement and the
Conveyance Papers, and the fulfillment of the terms of this Agreement and the Conveyance Papers
applicable to ABRC, will not conflict with, result in any breach of any of the material terms and
provisions of, or constitute (with or without notice or lapse of time or both) a material default
under, any indenture, contract, agreement, mortgage, deed of trust or other instrument to which
ABRC is a party or by which it or any of its properties are bound.

     (d) No Violation. The execution, delivery and performance of this Agreement and the
Conveyance Papers by ABRC and the fulfillment of the terms contemplated herein and therein
applicable to ABRC will not conflict with or violate any Requirements of Law applicable to ABRC.

     (e) No Proceedings. There are no proceedings or investigations pending or, to the
best knowledge of ABRC, threatened, against ABRC, before any Governmental Authority (i)
asserting the invalidity of this Agreement or the Conveyance Papers, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or the Conveyance Papers,
(iii) seeking any determination or ruling that, in the reasonable judgment of ABRC, would
materially and adversely affect the performance by ABRC of its obligations under this Agreement or
the Conveyance Papers or (iv) seeking any determination or ruling that would materially and
adversely affect the validity or enforceability of this Agreement or the Conveyance Papers.

     (f) All Consents. All authorizations, consents, orders or approvals of or
registrations or declarations with any Governmental Authority required to be obtained, effected or
given by ABRC in connection with the execution and delivery by ABRC of this Agreement and the
Conveyance Papers and the performance of the transactions contemplated by this Agreement and

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the Conveyance Papers have been duly obtained, effected or given and are in full force and
effect.

     The representations and warranties set forth in this Section 4.03 shall survive the Conveyance
of the Receivables to ABRC. Upon discovery by ABC or ABRC of a breach of any of the foregoing
representations and warranties, the party discovering such breach shall give prompt written notice
to the other party, the Owner Trustee and the Indenture Trustee.

[END OF ARTICLE IV]

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ARTICLE V

COVENANTS

     Section 5.01 Covenants of ABC. ABC hereby covenants and agrees with ABRC as follows:

     (a) Receivables Not To Be Evidenced by Promissory Notes. Except in connection with
its enforcement or collection of an Account, ABC will take no action to cause any Receivable (or
underlying receivable) to be evidenced by any instrument or chattel paper (as defined in the UCC)
and if any Receivable (or underlying receivable) is so evidenced as a result of any action by ABC
it shall be deemed to be an Ineligible Receivable in accordance with subsection 6.01(a) and shall
be reassigned to ABC in accordance with subsection 6.01(b).

     (b) Security Interests. Except for the conveyances hereunder, ABC will not sell,
pledge, assign or transfer to any other Person, or take any other action inconsistent with ABRC’s
ownership of the Receivables or grant, create, incur, assume or suffer to exist any Lien (arising
through or under ABC) on, any Receivable (or the underlying receivable), whether now existing or
hereafter created, or any interest therein, and ABC shall not claim any ownership interest in the
Receivables and shall defend the right, title and interest of ABRC in, to and under the
Receivables, whether now existing or hereafter created, against all claims of third parties
claiming through or under ABC.

     (c) Account Allocations. In the event that ABC is unable for any reason to transfer
Receivables to ABRC in accordance with the provisions of this Agreement (including, without
limitation, by reason of the application of the provisions of Section 8.02 or any order of any
Governmental Authority), then ABC agrees (except as prohibited by any such order) to allocate and
pay to ABRC, after the date of such inability, all amounts in the manner by which ABRC will
allocate and pay to the Trust such amounts after such inability by ABRC pursuant to Section 2.11 of
the Transfer and Servicing Agreement.

     (d) Delivery of Collections or Recoveries. In the event that ABC receives Collections
or Recoveries, ABC agrees to remit to ABRC (or to the Servicer if ABRC so directs) all such
Collections and Recoveries as soon as practicable after receipt thereof.

     (e) Notice of Liens. ABC shall notify ABRC promptly after becoming aware of any Lien
on any Receivable (or on the underlying receivable) other than the conveyances hereunder, under the
Transfer and Servicing Agreement or under the Indenture.

     (f) Interchange. Not later than 1:00 p.m., New York City time, on each Transfer Date,
ABC shall deposit into the Collection Account, in immediately available funds, (i) the amount of
Interchange to be included as Collections of Finance Charge and Administrative Receivables with
respect to the preceding Monthly Period or (ii) if at any time ABC cannot identify the amount of
such Interchange, the amount reasonably estimated by ABC as the amount of such Interchange.

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     (g) Documentation of Transfer. ABC shall undertake to file all documents which would
be necessary to perfect and maintain the transfer of the Purchased Assets to ABRC.

     (h) Periodic Rate Finance Charges. Except (x) as otherwise required by any
Requirements of Law or (y) as is deemed by ABC to be necessary in order for it to maintain its
credit card business or a program operated by such credit card business on a competitive basis
based on a good faith assessment by it of the nature of the competition with respect to the credit
card business or such program, it shall not at any time take any action which would have the effect
of reducing the Net Portfolio Yield to a level that could be reasonably expected to cause any
Series to experience any Pay Out Event or Event of Default based on the insufficiency of the Net
Portfolio Yield or any similar test.

     (i) Credit Card Agreements and Guidelines. Subject to compliance with all
Requirements of Law and paragraph (h) above, ABC may change the terms and provisions of the
applicable Credit Card Agreements or the applicable Credit Card Guidelines in any respect
(including the calculation of the amount or the timing of charge-offs and the Periodic Rate Finance
Charges to be assessed thereon). Notwithstanding the above, unless required by Requirements of Law
or as permitted by paragraph (h) above, ABC will not take any action unless (i) at the time of such
action, ABC reasonably believes that such action will not cause a Pay Out Event or Event of Default
to occur, and (ii) such change is made applicable to the comparable segment of the revolving credit
card accounts owned by ABC which have characteristics the same as, or substantially similar to, the
Designated Accounts that are the subject of such change, except as otherwise restricted by an
endorsement, sponsorship, or other agreement between ABC and an unrelated third party or by the
terms of the Credit Card Agreements.

     (j) Creation of Liens. Except for the conveyances hereunder, ABC hereby agrees not to
transfer, assign, exchange or otherwise convey or pledge, hypothecate or otherwise grant a Lien in
the Receivables and any such attempted transfer, assignment, exchange, conveyance, pledge,
hypothecation or grant shall be void.

     (k) MasterCard and Visa. ABC shall, to the extent applicable to Accounts owned or
serviced by it, use its best efforts to remain, either directly or indirectly, a member in good
standing of the MasterCard System, the Visa system and any other similar entity’s or organization’s
system relating to any other type of revolving credit card accounts designated as Accounts.

     (l) Approval of Official Records. ABC shall maintain this Agreement as a part of the
official records of ABC for the term of the Agreement.

     (m) No Petition. ABC hereby covenants and agrees that, prior to the date which is one
year and four days after the final payment to the Purchaser of all amounts due to it hereunder, it
will not institute against the Purchaser, or join in any institution against the Purchaser of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation

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proceedings, or other proceedings under any applicable bankruptcy or similar law in connection
with this Agreement.

[END OF ARTICLE V]

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ARTICLE VI

REPURCHASE OBLIGATION

     Section 6.01 Reassignment of Ineligible Receivables.

     (a) In the event any representation or warranty under subsection 4.02(a)(ii), (iii), (iv),
(vi), (vii) or (viii) is not true and correct in any material respect as of the date specified
therein with respect to any Receivable or the related Designated Account and as a result of such
breach ABRC is required to accept reassignment of Ineligible Receivables previously sold by ABRC to
the Trust pursuant to Section 2.05(a) of the Transfer and Servicing Agreement, ABC shall accept
reassignment of such Ineligible Receivables on the terms and conditions set forth in subsection
6.01(b).

     (b) ABC shall accept reassignment of any Ineligible Receivables previously sold by ABC to ABRC
from ABRC on the date on which such reassignment obligation arises under the Transfer and Servicing
Agreement, and shall pay for such reassigned Ineligible Receivables by paying to ABRC, not later
than 1:00 p.m., New York City time, on such date, an amount equal to the amount specified in
Section 2.05(b) of the Transfer and Servicing Agreement. Upon reassignment of such Ineligible
Receivables, ABRC shall automatically and without further action be deemed to sell, transfer,
assign, set-over and otherwise convey to ABC, without recourse, representation or warranty, all the
right, title and interest of ABRC in and to such Ineligible Receivables, all Interchange and
Recoveries related thereto, all monies and amounts due or to become due with respect thereto and
all proceeds thereof; and such reassigned Ineligible Receivables shall be treated by ABRC as
collected in full as of the date on which they were transferred. The obligation of ABC to accept
reassignment of any Ineligible Receivables conveyed by ABC to ABRC, and to make the payments, if
any, required to be made to ABRC as provided in this Section, shall constitute the sole remedy
respecting the event giving rise to such obligation available to ABRC, the Trust, the Noteholders
(or the Owner Trustee or Indenture Trustee on behalf of the Noteholders) or any Series Enhancer.
ABRC shall execute such documents and instruments of transfer or assignment and take such other
actions as shall reasonably be requested by ABC to effect the conveyance of such Ineligible
Receivables and other property pursuant to this subsection.

     Section 6.02 Reassignment. In the event any representation or warranty set forth in
subsection 4.01(a) or (c) or subsection 4.02(a)(i), (a)(v) or (a)(ix) is not true and correct in
any material respect and as a result of such breach ABRC is required to accept a reassignment of
any Receivables previously sold by ABC to ABRC pursuant to Section 2.06 of the Transfer and
Servicing Agreement, ABC shall be obligated to accept a reassignment of such Receivables on the
terms set forth below.

     ABC shall pay to ABRC by depositing in the Collection Account in immediately available funds,
not later than 1:00 p.m., New York City time, on the first Transfer Date following the Monthly
Period in which such reassignment obligation arises, in payment for such reassignment, an amount
equal to the amount specified in Section 2.06 of the Transfer and
Servicing Agreement. The obligation of ABC to accept the reassignment of Receivables

 - 20 - 

 

pursuant to this Section 6.02 and to make the deposit required to be made to the Collection Account as
provided in this paragraph shall constitute the sole remedy respecting an event of the type
specified in the first sentence of this Section 6.02 available to ABRC, the Trust, the Noteholders
(or the Owner Trustee or Indenture Trustee on behalf of the Noteholders) or any Series Enhancer.
Upon reassignment of the Receivables on such Transfer Date, ABRC shall automatically and without
further action be deemed to sell, transfer, assign, set-over and otherwise convey to ABC, without
recourse, representation or warranty, all the right, title and interest of ABRC in and to such
Receivables, all Interchange and Recoveries related thereto, and all monies and amounts due or to
become due with respect thereto and all proceeds thereof. ABRC shall execute such documents and
instruments of transfer or assignment and take such other actions as shall reasonably be requested
by ABC to effect the conveyance of such property pursuant to this subsection.

[END OF ARTICLE VI]

 - 21 - 

 

ARTICLE VII

CONDITIONS PRECEDENT

     Section 7.01 Conditions to ABRC’s Obligations Regarding Initial Receivables. The
obligations of ABRC to purchase the Receivables in the Initial Designated Accounts on the Closing
Date shall be subject to the satisfaction of the following conditions:

     (a) All representations and warranties of ABC contained in this Agreement shall be true and
correct on the Closing Date with the same effect as though such representations and warranties had
been made on such date;

     (b) (b) All information concerning the Initial Designated Accounts provided to ABRC shall be
true and correct as of the Initial Cut-Off Date in all material respects;

     (c) ABC shall have (i) delivered to ABRC a computer file or microfiche list containing a true
and complete list of all Initial Designated Accounts identified by account number and by the
Receivables balance as of the Initial Cut-Off Date and (ii) substantially performed all other
obligations required to be performed by the provisions of this Agreement;

     (d) ABC shall have recorded and filed, at its expense, any necessary financing statement with
respect to the Receivables (other than Receivables in Additional Designated Accounts) now existing
and hereafter created for the transfer of accounts and general intangibles (each as defined in the
applicable UCC) meeting the requirements of applicable law in such manner and in such jurisdictions
as would be necessary to perfect the sale of and security interest in the Receivables from ABC to
ABRC, and shall deliver a file-stamped copy of such financing statements or other evidence of such
filings to ABRC;

     (e) On or before the Closing Date, (i) ABRC and the Owner Trustee shall have entered into the
Trust Agreement, (ii) ABRC, ABC and the Trust shall have entered into the Transfer and Servicing
Agreement, (iii) the Trust and the Indenture Trustee shall have entered into the Indenture, and
(iv) the closing under all such agreements shall take place simultaneously with the initial closing
hereunder; and

     (f) All corporate and legal proceedings and all instruments in connection with the
transactions contemplated by this Agreement shall be satisfactory in form and substance to ABRC,
and ABRC shall have received from ABC copies of all documents (including, without limitation,
records of corporate proceedings) relevant to the transactions herein contemplated as ABRC may
reasonably have requested.

     Section 7.02 Conditions Precedent to ABC’s Obligations. The obligations of ABC to
sell Receivables in the Initial Designated Accounts on the Closing Date shall be subject to the
satisfaction of the following conditions:

     (a) All representations and warranties of ABRC contained in this Agreement shall be true and
correct with the same effect as though such representations and warranties had been made on such
date;

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     (b) Payment or provision for payment of the Purchase Price in accordance with the provision of
Section 3.01 hereof shall have been made; and

     (c) All corporate and legal proceedings and all instruments in connection with the
transactions contemplated by this Agreement shall be satisfactory in form and substance to ABC, and
ABC shall have received from ABRC copies of all documents (including, without limitation, records
of corporate proceedings) relevant to the transactions herein contemplated as ABC may reasonably
have requested.

[END OF ARTICLE VII]

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ARTICLE VIII

TERM AND PURCHASE TERMINATION

     Section 8.01 Term. This Agreement shall commence as of the date of execution and
delivery hereof and shall continue until the termination of the Trust as provided in Article VIII
of the Trust Agreement.

     Section 8.02 Purchase Termination. If ABC shall fail generally to, or admit in
writing its inability to, pay its debts as they become due; or if a proceeding shall have been
instituted in a court having jurisdiction in the premises seeking a decree or order for relief in
respect of ABC in an involuntary case under any Debtor Relief Law, or for the appointment of a
receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator or other similar
official of ABC or for any substantial part of ABC’s property, or for the winding-up or liquidation
of ABC’s affairs and, if instituted against ABC, any such proceeding shall continue undismissed or
unstayed and in effect, for a period of sixty (60) consecutive days, or any of the actions sought
in such proceeding shall occur; or if ABC shall commence a voluntary case under any Debtor Relief
Law, or if ABC shall consent to the entry of an order for relief in an involuntary case under any
Debtor Relief Law, or consent to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator, conservator or other similar official of, or for, any
substantial part of its property, or any general assignment for the benefit of its creditors or a
receiver, conservator, or liquidator shall have been appointed for ABC; or ABC shall have taken any
corporate action in furtherance of any of the foregoing actions (each, an “Insolvency
Event”); then ABC shall immediately cease to transfer Principal Receivables to ABRC and shall
promptly give notice to ABRC, the Owner Trustee and the Indenture Trustee of such Insolvency Event.
Notwithstanding any cessation of the transfer to ABRC of additional Principal Receivables,
Principal Receivables transferred to ABRC prior to the occurrence of such Insolvency Event and
Collections in respect of such Principal Receivables and Finance Charge and Administrative
Receivables whenever created or accrued in respect of such Principal Receivables, shall continue to
be property of ABRC available for transfer by ABRC to the Trust pursuant to the Transfer and
Servicing Agreement.

[END OF ARTICLE VIII]

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ARTICLE IX

MISCELLANEOUS PROVISIONS

     Section 9.01 Amendment. This Agreement and any Conveyance Papers and the rights and
obligations of the parties hereunder and thereunder may not be changed orally, but only by an
instrument in writing signed by ABRC and ABC in accordance with this Section 9.01. This Agreement
and any Conveyance Papers may be amended from time to time by ABRC and ABC (i) to cure any
ambiguity, (ii) to correct or supplement any provisions herein which may be inconsistent with any
other provisions herein or in any such other Conveyance Papers, (iii) to add any other provisions
with respect to matters or questions arising under this Agreement or any Conveyance Papers which
shall not be inconsistent with the provisions of this Agreement or any Conveyance Papers, (iv) to
change or modify the Purchase Price and (v) to change, modify, delete or add any other obligation
of ABC or ABRC; provided, however, that no amendment pursuant to clause (iv) or (v) of this Section
9.01 shall be effective unless ABC and ABRC have been notified in writing that the Rating Agency
Condition has been satisfied; provided further that ABC shall have delivered to ABRC an Officer’s
Certificate, dated the date of any such action, stating that ABC reasonably believes that such
action will not have an Adverse Effect, unless the Owner Trustee and the Indenture Trustee shall
consent thereto. Any reconveyance executed in accordance with the provisions hereof shall not be
considered to be an amendment to this Agreement. A copy of any amendment to this Agreement shall
be sent to the Rating Agency.

     Section 9.02 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

     Section 9.03 Notices. All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at or mailed by
registered mail, return receipt requested, to (a) in the case of ABC, Advanta Bank Corp., 11850
South Election Road, Draper, Utah 84020, Attention: Treasury Department, (facsimile no.
801-523-2929, (b) in the case of ABRC, Advanta Business Receivables Corp., 639 Isbell Road, Suite
390, Reno, Nevada 89509, Attention: Treasury Department, (facsimile no. 702-322-8808, (c) in the
case of the Owner Trustee, Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Denise Geran (facsimile no. (302)651-8882), or (d) in
the case of the Indenture Trustee, Bankers Trust Company, Four Albany Street, 10th floor, New York,
New York 10006, Attention Structured Finance Team, (facsimile no. (212)250-6439; or, as to each
party, at such other address as shall be designated by such party in a written notice to each other
party.

     Section 9.04 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement or any Conveyance Paper shall for any reason
whatsoever be held invalid, then such covenants, agreements, provisions, or terms shall be deemed
severable from the remaining covenants, agreements, provisions, and terms of this

 - 25 - 

 

Agreement or any
Conveyance Paper and shall in no way affect the validity or enforceability of the other provisions
of this Agreement or of any Conveyance Paper.

     Section 9.05 Assignment. Notwithstanding anything to the contrary contained herein,
other than ABRC’s assignment of its right, title, and interest in, to, and under this Agreement to
the Trust and the Indenture Trustee for the benefit of the beneficiaries of the Trust, including
the Noteholders as contemplated by the Transfer and Servicing Agreement, the Indenture and Section
9.06 hereof, this Agreement and all other Conveyance Papers may not be assigned by the parties
hereto; provided, however, that ABC shall have the right to assign its right, title and interest
in, to and under this Agreement to (i) any successor by merger assuming this Agreement (ii) to any
affiliate owned directly or indirectly by Advanta Corp. which assumes the obligations of this
Agreement or (iii) to any entity; provided that each Rating Agency has advised ABC and ABRC that
the Rating Agency Condition has been satisfied.

     Section 9.06 Acknowledgment and Agreement of ABC. By execution below, ABC expressly
acknowledges and agrees that all of ABRC’s right, title, and interest in, to, and under this
Agreement, including, without limitation, all of ABRC’s right, title, and interest in and to the
Receivables purchased pursuant to this Agreement, may be assigned by ABRC to the Trust, and may be
assigned by the Trust to the Indenture Trustee for the benefit of the beneficiaries of the Trust,
including the Noteholders, and ABC consents to such assignments. ABC further agrees that
notwithstanding any claim, counterclaim, right of setoff or defense which it may have against ABRC,
due to a breach by ABRC of this Agreement or for any other reason, and notwithstanding the
bankruptcy of ABRC or any other event whatsoever, ABC’s sole remedy shall be a claim against ABRC
for money damages, and then only to the extent of funds available to ABRC, and in no event shall
ABC assert any claim on or any interest in the Receivables or any proceeds thereof or take any
action which would reduce or delay receipt by the Trust of collections with respect to the
Receivables. Additionally, ABC agrees that any amounts payable by ABC to ABRC hereunder which are
to be paid by ABRC to the Trust for the benefit of the Noteholders shall be paid by ABC, on behalf
of ABRC, directly to the Trust.

     Section 9.07 Further Assurances. ABC and ABRC agree to do and perform, from time to
time, any and all acts and to execute any and all further instruments required or reasonably
requested by the other party, the Owner Trustee or the Indenture Trustee more fully to effect the
purposes of this Agreement and
the Conveyance Papers , including, without limitation, the execution of any financing
statements or continuation statements or equivalent documents relating to the Receivables for
filing under the provisions of the UCC or other law of any applicable jurisdiction.

     Section 9.08 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of ABRC or ABC, any right, remedy, power or privilege hereunder, shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided
are cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law.

 - 26 - 

 

     Section 9.09 Counterparts. This Agreement and all Conveyance Papers may be executed
in two or more counterparts (and by different parties on separate counterparts), each of which
shall be an original, but all of which together shall constitute one and the same instrument.

     Section 9.10 Binding Agreement; Third-Party Beneficiaries. This Agreement and the
Conveyance Papers will inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. The Trust and the Indenture Trustee shall be
considered third-party beneficiaries of this Agreement.

     Section 9.11 Merger and Integration. Except as specifically stated otherwise herein,
this Agreement and the Conveyance Papers set forth the entire understanding of the parties relating
to the subject matter hereof, and all prior understandings, written or oral, are superseded by this
Agreement and the Conveyance Papers. This Agreement and the Conveyance Papers may not be modified,
amended, waived or supplemented except as provided herein.

     Section 9.12 Headings. The headings herein are for purposes of reference only and
shall not otherwise affect the meaning or interpretation of any provision hereof.

     Section 9.13 Schedules and Exhibits. The schedules and exhibits attached hereto and
referred to herein shall constitute a part of this Agreement and are incorporated into this
Agreement for all purposes.

     Section 9.14 Survival of Representations and Warranties.
All representations, warranties and agreements contained in this Agreement or contained in any
Additional Designated Account Assignment shall remain operative and in full force and effect and
shall survive conveyance of the Receivables by ABRC to the Trust pursuant to the Transfer and
Servicing Agreement and by the Trust to the Indenture Trustee pursuant to the Indenture.

     Section 9.15 Nonpetition Covenant. Notwithstanding any prior termination of this
Agreement, ABC shall not, prior to the date which is one year and one day after the termination of
this Agreement, acquiesce, petition or otherwise invoke or cause ABRC or the Trust to invoke the
process of any Governmental Authority for the purpose of commencing or sustaining a case against
ABRC or the Trust under any Debtor Relief Law or appointing a receiver, conservator, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of ABRC or the Trust or any
substantial part of its property or ordering the winding-up or liquidation of the affairs of ABRC
or the Trust.

 - 27 - 

 

     IN WITNESS WHEREOF, ABRC and ABC have caused this Receivables Purchase Agreement to be duly
executed by their respective officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	ADVANTA BANK CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark B. Hales	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Mark B. Hales

Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	ADVANTA BUSINESS RECEIVABLES CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Coco	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Michael Coco

Title: Vice President-Finance	 	 

	 	 	 	 	 
	Acknowledged and Accepted:	 	 
	 
	 	 	 	 
	BANKERS TRUST COMPANY,	 	 
	 

	 	not in its individual capacity,	 	 
	 

	 	but solely as Indenture Trustee	 	 
	 
	 	 	 	 
	By:
	 	/s/ Peter Becker	 	 
	 

	 	 	 	 
	Name: Peter Becker

Title: Assistant Vice President	 	 

[Signature Page to Receivables Purchase Agreement]

 - 28 - 

 

EXHIBIT A

FORM OF ADDITIONAL DESIGNATED ACCOUNT ASSIGNMENT

(As required by Section 2.04 of the Receivables Purchase Agreement)

     ADDITIONAL DESIGNATED ACCOUNT ASSIGNMENT No. ___, dated as of ___, ___(the
“Assignment”), by and between ADVANTA BANK CORP., as transferor (“ABC”), and
ADVANTA BUSINESS RECEIVABLES CORP. (“ABRC”), pursuant to the Receivables Purchase Agreement
referred to below.

W I T N E S S E T H:

     WHEREAS, ABC and ABRC are parties to a Receivables Purchase Agreement, dated as of August 1,
2000 (hereinafter as such agreement may have been, or may from time to time be, amended,
supplemented or otherwise modified, the “Receivables Purchase Agreement”);

     WHEREAS, pursuant to the Receivables Purchase Agreement, ABC wishes to designate Additional
Designated Accounts to be included as Designated Accounts and ABC wishes to convey its right, title
and interest in the Receivables of such Additional Designated Accounts, whether now existing or
hereafter created, to ABRC pursuant to the Receivables Purchase Agreement (as each such term is
defined in the Receivables Purchase Agreement); and

     WHEREAS, ABRC is willing to accept such designation and conveyance subject to the terms and
conditions hereof.

     NOW, THEREFORE, ABC and ABRC hereby agree as follows:

     1. Defined Terms. All capitalized terms used herein and not otherwise defined shall
have the meanings ascribed thereto in the Receivables Purchase Agreement or, if not defined
therein, in the Transfer and Servicing Agreement.

     “Addition Date” shall mean, with respect to the Additional Designated Accounts
designated hereby, [___, ___].

     “Additional Cut-Off Date” shall mean, with respect to the Additional Designated
Accounts designated hereby, [___, ___].

     2. Designation of Additional Designated Accounts. ABC delivers herewith a computer
file or microfiche list containing a true and complete schedule identifying all such Additional
Designated Accounts (the “Additional Designated Accounts”) and specifying for each such
Additional Designated Account, as of the Additional Cut-Off Date, its account number, the aggregate
amount outstanding in such Account and the aggregate amount of Principal Receivables in such
Account. Such computer file, microfiche list or other documentation shall be as of the date of
this Assignment incorporated into and made part of this Assignment and is marked as Schedule
I to this Assignment.

EXHIBIT A - 1

 

     3. Conveyance of Receivables.

     (a) ABC does hereby sell, transfer, assign, set over and otherwise convey to ABRC, without
recourse except as provided in the Receivables Purchase Agreement, all its right, title and
interest in, to and under (i) the Receivables arising in such Additional Designated Accounts,
existing at the close of business on the Addition Date and thereafter created until termination of
the Receivables Purchase Agreement, (ii) all monies due or to become due and all amounts received
or receivable with respect thereto, (iii) all Interchange and Recoveries with respect to such
Receivables, and (iv) all “proceeds” (including, without limitation, “proceeds” as defined in
Article 9 of the UCC) thereof .

     (b) In connection with such sale and if necessary, ABC agrees to record and file, at its own
expense, one or more financing statements (and continuation statements with respect to such
financing statements when applicable) with respect to the Receivables existing on the Addition Date
and thereafter created, meeting the requirements of applicable state law in such manner and in such
jurisdictions as are necessary to perfect the sale and assignment of and the security interest in
the Receivables to ABRC, and to deliver a file-stamped copy of such financing statement or other
evidence of submission for filing to ABRC.

     (c) In connection with such sale, ABC further agrees, at its own expense, on or prior to the
date of this Assignment, to indicate in the appropriate computer files or microfiche list that all
Receivables created in connection with the Additional Designated Accounts designated hereby have
been conveyed to ABRC pursuant to this Assignment.

     4. Acceptance by ABRC. ABRC hereby acknowledges its acceptance of all right, title
and interest to the property, existing on the Addition Date and thereafter created, conveyed to
ABRC pursuant to Section 3(a) of this Assignment, and declares that it shall maintain such right,
title and interest. ABRC further acknowledges that, prior to or simultaneously with the execution
and delivery of this Assignment, ABC delivered to ABRC the computer file or microfiche list
described in Section 2 of this Assignment.

     5. Representations and Warranties of ABC. ABC hereby represents and warrants to ABRC
as of the date of this Assignment and as of the Addition Date that:

     (a) Legal, Valid and Binding Obligation. This Assignment constitutes a legal, valid
and binding obligation of ABC enforceable against ABC in accordance with its terms, except as such
enforceability may be limited by applicable Debtor Relief Laws or general principles of equity;

     (b) Eligibility of Accounts. On the Additional Cut-Off Date, each Additional
Designated Account designated hereby is an Eligible Account;

     (c) No Liens. Each Receivable in an Additional Designated Account designated hereby
has been conveyed to ABRC free and clear of any Lien and each underlying receivable is free and
clear of all Liens;

EXHIBIT A - 2

 

     (d) Eligibility of Receivables. On the Additional Cut-Off Date, each Receivable
existing in an Additional Designated Account designated hereby is an Eligible Receivable and as of
the date of creation of any Receivable in an Additional Designated Account designated hereby, such
Receivable is an Eligible Receivable;

     (e) Selection Procedures. No selection procedure believed by ABC to be materially
adverse to the interests of ABRC or the Noteholders was utilized in selecting the Additional
Designated Accounts;

     (f) Transfer of Receivables. This Assignment constitutes a valid sale, transfer and
assignment to ABRC of all right, title and interest of ABC in (i) the Receivables arising in the
Additional Designated Accounts designated hereby existing on the Addition Date or thereafter
created, (ii) all monies due or to become due and all amounts received or receivable with respect
thereto, (iii) the Interchange and the Recoveries with respect thereto, and (iv) the “proceeds”
(including, without limitation, “proceeds” as defined in Article 9 of the UCC) thereof ;

     (g) No Conflict. The execution and delivery of this Assignment, the performance of
the transactions contemplated by this Assignment and the fulfillment of the terms hereof, will not
conflict with, result in any breach of any of the material terms and provisions of, or constitute
(with or without notice or lapse of time or both) a material default under, any indenture,
contract, agreement, mortgage, deed of trust or other instrument to which ABC is a party or by
which it or its properties are bound;

     (h) No Violation. The execution and delivery of this Assignment by ABC, the
performance of the transactions contemplated by this Assignment and the fulfillment of the terms
hereof applicable to ABC will not conflict with or violate any Requirements of Law applicable to
ABC;

     (i) No Proceedings. There are no proceedings or investigations pending or, to the
best knowledge of ABC, threatened against ABC before any Governmental Authority (i) asserting the
invalidity of this Assignment, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Assignment, (iii) seeking any determination or ruling that, in the reasonable
judgment of ABC, would materially and adversely affect the performance by ABC of its obligations
under this Assignment or (iv) seeking any determination or ruling that would materially and
adversely affect the validity or enforceability of this Assignment; and

     (j) All Consents. All authorizations, consents, orders or approvals of any
Governmental Authority required to be obtained by ABC in connection with the execution and delivery
of this Assignment by ABC and the performance of the transactions contemplated by this Assignment
by ABC, have been obtained.

     6. Ratification of the Receivables Purchase Agreement. The Receivables Purchase
Agreement is hereby ratified, and all references to the “Receivables Purchase Agreement,”
to “this Agreement” and “herein” shall be deemed from and after the Addition Date
to be a reference to the Receivables Purchase Agreement as supplemented by this Assignment. Except

EXHIBIT A - 3

 

as expressly amended hereby, all the representations, warranties, terms, covenants and
conditions of the Receivables Purchase Agreement shall remain unamended and shall continue to be,
and shall, remain, in full force and effect in accordance with its terms and except as expressly
provided herein shall not constitute or be deemed to constitute a waiver of compliance with or
consent to non-compliance with any term or provision of the Receivables Purchase Agreement.

     7. Counterparts. This Assignment may be executed in any number of counterparts, all
of which taken together shall constitute one and the same instrument.

     8. Governing Law. This Assignment shall be construed in accordance with the laws of
the State of New York, without reference to its conflict of laws provisions.

[SIGNATURE PAGE FOLLOWS]

EXHIBIT A - 4

 

     IN WITNESS WHEREOF, the undersigned have caused this Assignment to be duly executed and
delivered by their respective duly authorized officers on the day and the year first above written.

	 	 	 	 	 	 	 
	 	 	ADVANTA BANK CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:

Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ADVANTA BUSINESS RECEIVABLES CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:

Title:	 	 

EXHIBIT A - 5

 

SCHEDULE I

LIST OF DESIGNATED ACCOUNTS

SCHEDULE 1 - 1

 

SCHEDULE I TO ADDITIONAL DESIGNATED ACCOUNT ASSIGNMENT

ADDITIONAL DESIGNATED ACCOUNTS

SCHEDULE 1 - 2

 

EXHIBIT B

FORM OF REASSIGNMENT OF RECEIVABLES IN REMOVED ACCOUNTS

(As required by Section 2.05 of the Receivables Purchase Agreement)

     REASSIGNMENT No. ___OF RECEIVABLES dated as of ___,* by and between ADVANTA BANK
CORP., a Utah industrial loan corporation (“ABC”), and ADVANTA BUSINESS RECEIVABLES CORP., a Nevada
corporation (“ABRC”), pursuant to the Receivables Purchase Agreement referred to below (the
“Reassignment”).

W I T N E S S E T H:

     WHEREAS ABC and ABRC are parties to the Receivables Purchase Agreement, dated as of August 1,
2000 (as amended and supplemented, the “Agreement”);

     WHEREAS pursuant to the Agreement, ABC wishes to remove from the provisions of the Agreement
all Receivables in certain designated Accounts (the “Removed Accounts”) and to cause ABRC to
reconvey the Receivables of such Removed Accounts, whether now existing or hereafter created, from
ABRC to ABC; and

     WHEREAS ABRC is willing to accept such designation and to reconvey the Receivables in the
Removed Accounts subject to the terms and conditions hereof;

     NOW, THEREFORE, ABC and ABRC hereby agree as follows:

     1. Defined Terms. All terms defined in the Agreement and used herein shall have such
defined meanings when used herein, unless otherwise defined herein.

     “Removal Date” shall mean, with respect to the Removed Accounts designated hereby,
___, ___.

     “Removal Cut-Off Date” shall mean, with respect to the Removed Accounts
___, ___.

     2. Designation of Removed Accounts. On or before the date that is five (5) Business
Days on or before the Removal Date, ABC will deliver to ABRC a computer file or microfiche list
containing a true and complete schedule identifying all Removed Accounts and specifying for each
such Account, as of the Removal Cut-Off Date, its account number, the aggregate amount outstanding
in such Account and the aggregate amount of Principal Receivables outstanding in such Account,
which computer file or microfiche list shall amend and supplement Schedule 1 to the Agreement.

 

			
	*	 	To be dated as of the Removal Date.

EXHIBIT B - 1

 

     3. Conveyance of Receivables. (a) ABRC does hereby transfer, assign, set over and
otherwise convey to ABC, without recourse, on and after the Removal Date, all right, title and
interest of ABRC in, to and under the Receivables existing at the close of business on the Removal
Date and thereafter created from time to time in the Removed Accounts designated hereby, all
Interchange and Recoveries related thereto, all monies due or to become due and all amounts
received or receivable with respect thereto and all proceeds thereof.

     (b) In connection with such transfer, ABRC agrees to execute and deliver to ABC on or prior to
the date this Reassignment is delivered, applicable termination statements prepared by ABC with
respect to the Receivables existing at the close of business on the Removal Date and thereafter
created from time to time in the Removed Accounts reassigned hereby and the proceeds thereof
evidencing the release by ABRC of its interest in the Receivables in the Removed Accounts, and
meeting the requirements of applicable state law, in such manner and such jurisdictions as are
necessary to terminate such interest.

     4. Representations and Warranties of ABC. ABC hereby represents and warrants to ABRC
as of the Removal Date:

     (a) Legal Valid and Binding Obligation. This Reassignment constitutes a legal, valid
and binding obligation of ABC enforceable against ABRC in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in
general and except as such enforceability may be limited by general principles of equity (whether
considered in a suit at law or in equity); and

     (b) Pay Out Event; Event of Default. ABC reasonably believes that (A) the removal of
the Receivables existing in the Removed Accounts will not, based on the facts known to ABRC, then
or thereafter cause a Pay Out Event or Event of Default to occur with respect to any Series and (B)
no selection procedure was utilized by ABC which would result in a selection of Removed Accounts
that would be materially adverse to the interests of the Noteholders of any Series as of the
Removal Date.

     (c) List of Removed Accounts. The list of Removed Accounts delivered pursuant to
subsection 2.05 of the Agreement, as of the Removal Date, is true and complete in all material
respects.

     5. Ratification of Agreement. As supplemented by this Reassignment, the Agreement is
in all respects ratified and confirmed and the Agreement as so supplemented by this Reassignment
shall be read, taken and construed as one and the same instrument.

     6. Counterparts. This Reassignment may be executed in two or more counterparts, and
by different parties on separate counterparts, each of which shall be an original, but all of which
shall constitute one and the same instrument.

     7. GOVERNING LAW. THIS REASSIGNMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT

EXHIBIT B - 2

 

REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     IN WITNESS WHEREOF, ABC and ABRC have caused this Reassignment to be duly executed by their
respective officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	ADVANTA BANK CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:

Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ADVANTA BUSINESS RECEIVABLES CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:

Title:	 	 

EXHIBIT B - 3

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